HF 5120

as introduced - 93rd Legislature (2023 - 2024) Posted on 04/24/2024 05:09pm

A bill for an act
relating to campaign finance; prohibiting a candidate's principal campaign
committee from accepting a loan from a candidate if the terms of the loan require
the principal campaign committee to pay interest to the candidate; requiring a
refund of interest payments to a principal campaign committee's contributors in
certain circumstances; amending Minnesota Statutes 2022, section 10A.27,
subdivision 8.

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

Section 1.

Minnesota Statutes 2022, section 10A.27, subdivision 8, is amended to read:

Subd. 8.

Excess loans prohibited new text begin ; limitation on interest new text end .

new text begin (a) new text end A candidate must not
permit the candidate's principal campaign committee to accept a loan from other than a
financial institution for an amount in excess of the contribution limits imposed by this
section. A candidate must not permit the candidate's principal campaign committee to accept
a loan from a financial institution for which the financial institution may hold an endorser
of the loan liable to pay an amount in excess of the amount that the endorser may contribute
to that candidate.

new text begin (b) A candidate's principal campaign committee must not accept a loan from the candidate
if the terms of the loan require the candidate's principal campaign committee to pay interest
to the candidate.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is retroactive to January 1, 2022.
new text end

Sec. 2. new text begin LOANS FROM CANDIDATE TO CANDIDATE'S PRINCIPAL CAMPAIGN
COMMITTEE.
new text end

new text begin A candidate's principal campaign committee that accepted a loan from the candidate
that included in its terms a required interest payment on or after January 1, 2022, must
distribute a refund of the interest paid, on a pro rata basis, to any person who contributed
to the candidate's principal campaign committee on or after that date. A refund required by
this section must be distributed no later than July 1, 2024.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end