HF 4772

as introduced - 93rd Legislature (2023 - 2024) Posted on 03/11/2024 02:15pm

A bill for an act
relating to elections; modifying the authority of the Campaign Finance and Public
Disclosure Board to impose a civil penalty and late fees; expanding the definition
of electioneering communication to include communications disseminated digitally
online or by electronic means to a recipient's telephone or other personal device;
modifying the definition of major political party; amending Minnesota Statutes
2022, section 10A.27, subdivision 17; Minnesota Statutes 2023 Supplement,
sections 10A.20, subdivision 12; 10A.201, subdivisions 3, 4, 6, 9; 200.02,
subdivision 7; repealing Minnesota Statutes 2023 Supplement, section 10A.201,
subdivision 11.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2023 Supplement, section 10A.20, subdivision 12, is
amended to read:

Subd. 12.

Failure to file; late fees; penalty.

(a) If an individual or association fails to
file a report required by this section or section 10A.202, the board may impose a late filing
fee new text begin and a civil penalty new text end as provided in this subdivision.

(b) If deleted text begin an individual or association deleted text end new text begin a candidate, political committee, political fund, principal
campaign committee, or party unit new text end fails to file a report required by this section that is due
January 31, the board may impose a late filing fee of $25 per day, not to exceed $1,000,
commencing the day after the report was due.

(c) new text begin Except for reports governed by paragraph (b), new text end if an individual new text begin , political committee,
political fund, principal campaign committee, party unit, new text end or association fails to file a report
required by subdivision 2, 2a, or 5, or by section 10A.202, the board may impose a late
filing fee of $50 per day, not to exceed $1,000, commencing on the day after the date the
statement was due deleted text begin , provided that deleted text end new text begin . new text end If the total deleted text begin receipts received deleted text end new text begin expenditures or disbursements
that occurred new text end during the reporting period deleted text begin or total expenditure reportable under section
10A.202 deleted text end exceeds $25,000, then the board may new text begin also new text end impose a late filing fee of up to two
percent of the deleted text begin amount deleted text end new text begin expenditures or disbursements new text end that should have been reported, per
day, commencing on the day after the report was due, not to exceed 100 percent of the
amount that should have been reported.

(d) If an individual new text begin , political committee, political fund, principal campaign committee,
party unit, new text end or association has been assessed a late filing fee new text begin or civil penalty new text end under this
subdivision during the prior four years, the board may impose a late filing fee new text begin , a civil penalty,
or both, new text end of up to twice the amount otherwise authorized by this subdivision. new text begin If an individual,
political committee, political fund, principal campaign committee, party unit, or association
has been assessed a late filing fee under this subdivision more than two times during the
prior four years, the board may impose a late filing fee of up to three times the amount
otherwise authorized by this subdivision.
new text end

(e) Within ten business days after the report was due or receipt by the board of
information disclosing the potential failure to file a report required by this section, the board
must send notice by certified mail that the individual or association may be subject to a civil
penalty for failure to file the report. An individual who fails to file the report within seven
days after the certified mail notice was sent by the board is subject to a civil penalty imposed
by the board of up to deleted text begin $1,000 deleted text end new text begin $2,000 new text end in addition to the late filing fees imposed by this
subdivision.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2024, and applies to penalties
assessed on or after that date.
new text end

Sec. 2.

Minnesota Statutes 2023 Supplement, section 10A.201, subdivision 3, is amended
to read:

Subd. 3.

deleted text begin Can be received by 10,000 or more individuals deleted text end new text begin Targeted to the relevant
electorate new text end .

(a) deleted text begin "Can be received by 10,000 or more individuals" deleted text end new text begin "Targeted to the relevant
electorate" new text end means new text begin that a communication can be received in the district the candidate seeks
to represent, in the case of a candidate for representative, senator, or other office represented
by district; or in the entire state, if the candidate seeks a statewide office, as follows new text end :

(1) in the case of a communication transmitted by an FM radio broadcast station or
network, where the district lies entirely within the station's or network's protected or primary
service contour, that the population of the district is 10,000 or more;

(2) in the case of a communication transmitted by an FM radio broadcast station or
network, where a portion of the district lies outside of the protected or primary service
contour, that the population of the part of the district lying within the station's or network's
protected or primary service contour is 10,000 or more;

(3) in the case of a communication transmitted by an AM radio broadcast station or
network, where the district lies entirely within the station's or network's most outward service
area, that the population of the district is 10,000 or more;

(4) in the case of a communication transmitted by an AM radio broadcast station or
network, where a portion of the district lies outside of the station's or network's most outward
service area, that the population of the part of the district lying within the station's or
network's most outward service area is 10,000 or more;

(5) in the case of a communication appearing on a television broadcast station or network,
where the district lies entirely within the station's or network's Grade B broadcast contour,
that the population of the district is 10,000 or more;

(6) in the case of a communication appearing on a television broadcast station or network,
where a portion of the district lies outside of the Grade B broadcast contour:

(i) that the population of the part of the district lying within the station's or network's
Grade B broadcast contour is 10,000 or more; or

(ii) that the population of the part of the district lying within the station's or network's
broadcast contour, when combined with the viewership of that television station or network
by cable and satellite subscribers within the district lying outside the broadcast contour, is
10,000 or more;

(7) in the case of a communication appearing exclusively on a cable or satellite television
system, but not on a broadcast station or network, that the viewership of the cable system
or satellite system lying within a district is 10,000 or more; deleted text begin or
deleted text end

(8) in the case of a communication appearing on a cable television network, that the
total cable and satellite viewership within a district is 10,000 or more deleted text begin . deleted text end new text begin ; or
new text end

new text begin (9) in the case of an email blast, a text message blast, a telephone bank, or a qualifying
paid digital advertisement or communication, that the communication is capable of being
received by 2,500 or more individuals in a district.
new text end

(b) Cable or satellite television viewership is determined by multiplying the number of
subscribers within a district, or a part thereof, as appropriate, by the current average
household size for Minnesota, as determined by the Bureau of the Census.

(c) A determination that a communication can be received by 10,000 or more individuals
based on the application of the formula in this section shall create a rebuttable presumption
that may be overcome by demonstrating that:

(1) one or more cable or satellite systems did not carry the network on which the
communication was publicly distributed at the time the communication was publicly
distributed; and

(2) applying the formula to the remaining cable and satellite systems results in a
determination that the cable network or systems upon which the communication was publicly
distributed could not be received by 10,000 individuals or more.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective ....... and applies to communications
disseminated on or after that date.
new text end

Sec. 3.

Minnesota Statutes 2023 Supplement, section 10A.201, subdivision 4, is amended
to read:

Subd. 4.

Direct costs of producing or airing electioneering communications.

"Direct
costs of producing or airing electioneering communications" means:

(1) costs charged by a vendor, including studio rental time, staff salaries, costs of video
or audio recording media, and talent; deleted text begin and
deleted text end

(2) the cost of airtime on broadcast, cable, or satellite radio and television stations, studio
time, material costs, and the charges for a broker to purchase the airtime deleted text begin . deleted text end new text begin ; and
new text end

new text begin (3) the cost to access any platform used to disseminate messages digitally online or by
electronic means to a recipient's telephone or other personal device.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective ....... and applies to communications
disseminated on or after that date.
new text end

Sec. 4.

Minnesota Statutes 2023 Supplement, section 10A.201, subdivision 6, is amended
to read:

Subd. 6.

Electioneering communication.

(a) "Electioneering communication" means
any broadcast, cable, deleted text begin or deleted text end satellite new text begin , or digital new text end communication that:

(1) refers to a clearly identified candidate for state office;

(2) is publicly distributed within 60 days before a general election for the office sought
by the candidate; or within 30 days before a primary election, or a convention or caucus of
a political party that has authority to nominate a candidate, for the office sought by the
candidate, and the candidate referenced is seeking the nomination of that political party;
and

(3) is targeted to the relevant electorate.

(b) A communication is not an electioneering communication if it:

(1) is publicly disseminated through a means of communication other than a broadcast,
cable, deleted text begin or deleted text end satellite television or radio station new text begin , or by digital means through an electronic device new text end ;

(2) appears in a news story, commentary, or editorial distributed through the facilities
of any broadcast, cable, or satellite television or radio station, unless such facilities are
owned or controlled by any political party, political committee, or candidate, provided that
a news story distributed through a broadcast, cable, or satellite television or radio station
owned or controlled by any political party, political committee, or candidate is not an
electioneering communication if the news story meets the requirements described in Code
of Federal Regulations, title 11, section 100.132 (a) and (b);

(3) constitutes an expenditure or independent expenditure, provided that the expenditure
or independent expenditure is required to be reported under this chapter;

(4) constitutes a candidate debate or forum, or that solely promotes such a debate or
forum and is made by or on behalf of the person sponsoring the debate or forum; or

(5) is paid for by a candidate.

Sec. 5.

Minnesota Statutes 2023 Supplement, section 10A.201, subdivision 9, is amended
to read:

Subd. 9.

Publicly distributed.

"Publicly distributed" means aired, broadcast, cablecast,
or otherwise disseminated through the facilities of a television station, radio station, cable
television system, deleted text begin or deleted text end satellite system new text begin , or disseminated in a digital format online or by other
electronic means to a recipient's telephone or other personal device new text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective ....... and applies to communications
disseminated on or after that date.
new text end

Sec. 6.

Minnesota Statutes 2022, section 10A.27, subdivision 17, is amended to read:

Subd. 17.

Penalty.

(a) An association that makes a contribution under subdivision 15
and fails to provide the required statement within the time specified is subject to a new text begin late filing
fee of $100 a day not to exceed $1,000, commencing the day after the statement was due.
The board must send notice by certified mail that the individual or association may be
subject to a civil penalty for failure to file the statement. An association that fails to provide
the required statement within seven days after the certified mail notice was sent by the board
is subject to a new text end civil penalty of up to four times the amount of the contribution, but not to
exceed $25,000 deleted text begin , except when the violation was intentional deleted text end .

(b) An independent expenditure political committee or an independent expenditure
political fund that files a report without including the statement required under subdivision
15 is subject to a new text begin late filing fee of $100 a day not to exceed $1,000, commencing the day
after the report was due. The board must send notice by certified mail that the independent
expenditure political committee or independent expenditure fund may be subject to a civil
penalty for failure to file the statement. An association that fails to provide the required
statement within seven days after the certified mail notice was sent by the board is subject
to a new text end civil penalty of up to four times the amount of the contribution for which disclosure
was not filed, but not to exceed $25,000 deleted text begin , except when the violation was intentional deleted text end .

new text begin (c) If an independent expenditure political committee or an independent expenditure
political fund has been assessed a late filing fee under this subdivision during the prior four
years, the board may impose a late filing fee of up to twice the amount otherwise authorized
by this subdivision. If an independent expenditure political committee or an independent
expenditure political fund has been assessed a late filing fee under this subdivision more
than two times during the prior four years, the board may impose a late filing fee of up to
three times the amount otherwise authorized by this subdivision.
new text end

deleted text begin (c) deleted text end new text begin (d) new text end No other penalty provided in law may be imposed for conduct that is subject to
a civil penalty under this section.

Sec. 7.

Minnesota Statutes 2023 Supplement, section 200.02, subdivision 7, is amended
to read:

Subd. 7.

Major political party.

(a) "Major political party" means a political party that
maintains a party organization in the state; has complied with the party's constitution and
rules; is in compliance with the requirements of sections 202A.12 and 202A.13; files with
the secretary of state no later than December 1 of each odd-numbered year a certification
that the party has met the foregoing requirements, including a list of the dates and locations
of each convention held; and meets all other qualification requirements of this subdivision.

(b) A political party qualifies as a major political party by:

(1) presenting at least one candidate for election to the office of:

(i) governor and lieutenant governor, secretary of state, state auditor, or attorney general
at the last preceding state general election for those offices; or

(ii) presidential elector or U.S. senator at the last preceding state general election for
presidential electors; and

whose candidate received votes in each county in that election and received votes from deleted text begin not
less than five percent of the total number of individuals who voted in that election, if the
state general election was held on or before November 8, 2022, or deleted text end not less than eight percent
of the total number of individuals who voted in that election deleted text begin , at a state general election held
on or after November 7, 2024 deleted text end ;

(2) presenting at least 45 candidates for election to the office of state representative, 23
candidates for election to the office of state senator, four candidates for election to the office
of representative in Congress, and one candidate for election to each of the following offices:
governor and lieutenant governor, attorney general, secretary of state, and state auditor, at
the last preceding state general election for those offices; or

(3) presenting to the secretary of state at any time before the close of filing for the state
partisan primary ballot a petition for a place on the state partisan primary ballot, which
petition contains valid signatures of a number of the party members equal to at least five
percent of the total number of individuals who voted in the preceding state general election.
A signature is valid only if signed no more than one year prior to the date the petition was
filed.

(c) A political party whose candidate receives a sufficient number of votes at a state
general election described in paragraph (b), clause (1), or a political party that presents
candidates at an election as required by paragraph (b), clause (2), becomes a major political
party as of January 1 following that election. A political party that complies with paragraph
(a) retains its major party status for at least two state general elections even if the party fails
to present a candidate who receives the number and percentage of votes required under
paragraph (b), clause (1), or fails to present candidates as required by paragraph (b), clause
(2), at subsequent state general elections.

(d) A major political party whose candidates fail to receive the number and percentage
of votes required under paragraph (b), clause (1), and that fails to present candidates as
required by paragraph (b), clause (2), at each of two consecutive state general elections
described by paragraph (b), clause (1) or (2), respectively, loses major party status as of
December 31 following the later of the two consecutive state general elections.

(e) A major political party that does not submit the certification required by this
subdivision loses major party status on December 31 of the year in which the party did not
file the certification.

(f) The secretary of state must notify the chair of the major political party, the
commissioner of revenue, and the Campaign Finance and Public Disclosure Board if the
political party's status is changed pursuant to this section.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2024.
new text end

Sec. 8. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2023 Supplement, section 10A.201, subdivision 11, new text end new text begin is repealed.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective ....... and applies to communications
disseminated on or after that date.
new text end

APPENDIX

Repealed Minnesota Statutes: 24-07482

10A.201 ELECTIONEERING COMMUNICATIONS; DEFINITIONS.

Subd. 11.

Targeted to the relevant electorate.

"Targeted to the relevant electorate" means the communication can be received by 10,000 or more individuals:

(1) in the district the candidate seeks to represent, in the case of a candidate for representative, senator, or other office represented by district; or

(2) in the entire state, if the candidate seeks a statewide office.