1st Engrossment - 82nd Legislature (2001 - 2002) Posted on 12/15/2009 12:00am
1.1 A bill for an act 1.2 relating to elections; limiting independent 1.3 expenditures by political parties on behalf of their 1.4 own candidates as a condition of receiving a public 1.5 subsidy; requiring additional public disclosure; 1.6 changing times and procedures for distribution of 1.7 certain public subsidies; limiting certain 1.8 multicandidate expenditures by political parties; 1.9 changing certain requirements; limiting certain 1.10 contributions; imposing civil penalties; amending 1.11 Minnesota Statutes 2000, sections 10A.01, subdivisions 1.12 9, 18; 10A.20, subdivision 6b, by adding a 1.13 subdivision; 10A.25, subdivision 1, by adding 1.14 subdivisions; 10A.27, subdivisions 1, 2, 10; 10A.275, 1.15 subdivision 1; 10A.28, subdivision 1; 10A.31, 1.16 subdivisions 3a, 5, 7, by adding a subdivision; 1.17 10A.322; 200.02, subdivision 23; 211A.12; 290.06, 1.18 subdivision 23. 1.19 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 1.20 Section 1. Minnesota Statutes 2000, section 10A.01, 1.21 subdivision 9, is amended to read: 1.22 Subd. 9. [CAMPAIGN EXPENDITURE.] (a) "Campaign 1.23 expenditure" or "expenditure" means a purchase or payment of 1.24 money or anything of value, or an advance of credit, made or 1.25 incurred for the purpose of influencing the nomination or 1.26 election of a candidate or for the purpose of promoting or 1.27 defeating a ballot question. "Expenditure" includes a cost 1.28 incurred to design, produce, or disseminate a communication if 1.29 the communication contains words such as "vote for," "reelect," 1.30 "(name of candidate) for (office)," "vote against," "defeat," or 1.31 another phrase or campaign slogan that in context can have no 1.32 reasonable meaning other than to advocate support for or 2.1 opposition to the nomination or election of one or more clearly 2.2 identified candidates. 2.3 (b) "Expenditure" is presumed to include a cost incurred to 2.4 design, produce, or disseminate a communication if the 2.5 communication names or depicts one or more clearly identified 2.6 candidates, is disseminated during the 45 days before a primary 2.7 election, during the 60 days before a general election, or 2.8 during a special election cycle until election day, and the cost 2.9 exceeds the following amounts for a communication naming or 2.10 depicting a candidate for the following offices: 2.11 (1) $500 for a candidate for governor, lieutenant governor, 2.12 attorney general, secretary of state, or state auditor; or 2.13 (2) $100 for a candidate for state senator or 2.14 representative. 2.15 An individual or association presumed under this paragraph 2.16 to have made an expenditure may rebut the presumption by a 2.17 written statement signed by the spender and filed with the board 2.18 stating that the cost was not incurred with intent to influence 2.19 the nomination, election, or defeat of any candidate, supported 2.20 by any additional evidence the spender chooses to submit. The 2.21 board may consider any additional evidence it deems relevant and 2.22 material and must determine by a preponderance of the evidence 2.23 whether the cost was incurred with intent to influence the 2.24 nomination, election, or defeat of a candidate. 2.25 (c) An expenditure is considered to be made in the year in 2.26 which the candidate made the purchase of goods or services or 2.27 incurred an obligation to pay for goods or services. 2.28 (d) An expenditure made for the purpose of defeating a 2.29 candidate is considered made for the purpose of influencing the 2.30 nomination or election of that candidate or any opponent of that 2.31 candidate. 2.32 (e) Except as provided in clause (1), "expenditure" 2.33 includes the dollar value of a donation in kind. 2.34 "Expenditure" does not include: 2.35 (1) noncampaign disbursements as defined in subdivision 26; 2.36 (2) services provided without compensation by an individual 3.1 volunteering personal time on behalf of a candidate, ballot 3.2 question, political committee, political fund, principal 3.3 campaign committee, or party unit;or3.4 (3) the publishing or broadcasting of news items or 3.5 editorial comments by the news media, if the news medium is not 3.6 owned by or affiliated with any candidate or principal campaign 3.7 committee; or 3.8 (4) a cost incurred by an association for a communication 3.9 targeted to inform solely its own dues-paying members of the 3.10 association's position on a candidate. 3.11 Sec. 2. Minnesota Statutes 2000, section 10A.01, 3.12 subdivision 18, is amended to read: 3.13 Subd. 18. [INDEPENDENT EXPENDITURE.] (a) "Independent 3.14 expenditure" means an expenditureexpressly advocating the3.15election or defeat of a clearly identified candidate, if the3.16expenditurethat is made without the express or implied consent, 3.17 authorization, or cooperation of, and not in concert with or at 3.18 the request or suggestion of, any candidate or any candidate's 3.19 principal campaign committee or agent. An independent 3.20 expenditure is not a contribution to that candidate.An3.21expenditure by a political party or political party unit in a3.22race where the political party has a candidate on the ballot is3.23not an independent expenditure.3.24 (b) An expenditure is presumed to be not independent if, 3.25 for example: 3.26 (1) in the same election cycle in which the expenditure 3.27 occurs, the spender or the spender's agent retains the 3.28 professional services of an individual or entity that, in a 3.29 nonministerial capacity, provides or has provided 3.30 campaign-related service, including polling or other campaign 3.31 research, media consulting or production, direct mail, or 3.32 fundraising, to a candidate supported by the spender for 3.33 nomination or election to the same office as any candidate whose 3.34 nomination or election the expenditure is intended to influence 3.35 or to a political party working in coordination with the 3.36 supported candidate; 4.1 (2) the expenditure pays for a communication that 4.2 disseminates, in whole or in substantial part, a broadcast or 4.3 written, graphic, or other form of campaign material designed, 4.4 produced, or distributed by the candidate, the candidate's 4.5 principal campaign committee, or their agents; 4.6 (3) the expenditure is based on information about the 4.7 candidate's electoral campaign plans, projects, or needs that is 4.8 provided by the candidate, the candidate's principal campaign 4.9 committee, or their agents directly or indirectly to the spender 4.10 or the spender's agent, with an express or tacit understanding 4.11 that the spender is considering making the expenditure; 4.12 (4) before the election, the spender or the spender's agent 4.13 informs a candidate or the principal campaign committee or agent 4.14 of a candidate for the same office as a candidate clearly 4.15 identified in a communication paid for by the expenditure about 4.16 the communication's contents; timing, location, mode, or 4.17 frequency of dissemination; or intended audience; or 4.18 (5) in the same election cycle in which the expenditure 4.19 occurs, the spender or the spender's agent is serving or has 4.20 served in an executive, policymaking, fundraising, or advisory 4.21 position with the candidate's campaign or has participated in 4.22 strategic or policymaking discussions with the candidate's 4.23 campaign relating to the candidate's pursuit of nomination or 4.24 election to office and the candidate is pursuing the same office 4.25 as a candidate whose nomination or election the expenditure is 4.26 intended to influence. 4.27 An individual or association presumed under this paragraph 4.28 to have made an expenditure that was not independent may rebut 4.29 the presumption by a written statement signed by the spender and 4.30 filed with the board stating that the expenditure was made 4.31 without the express or implied consent, authorization, or 4.32 cooperation of, and not in concert with or at the request or 4.33 suggestion of, any candidate or any candidate's principal 4.34 campaign committee or agent, supported by any additional 4.35 evidence the spender chooses to submit. The board may consider 4.36 any additional evidence it deems relevant and material and must 5.1 determine by a preponderance of the evidence whether the 5.2 expenditure was independent. 5.3 (c) An expenditure by anyone other than a principal 5.4 campaign committee that does not qualify as an independent 5.5 expenditure under this subdivision is deemed to be an approved 5.6 expenditure under subdivision 4. 5.7 Sec. 3. Minnesota Statutes 2000, section 10A.20, 5.8 subdivision 6b, is amended to read: 5.9 Subd. 6b. [INDEPENDENT EXPENDITURES; NOTICE; REPORT.] (a) 5.10 Within 24 hours after an individual, political committee, or 5.11 political fundmakes or becomes obligated by oral or written5.12agreement to makedisseminates a communication paid for by an 5.13 independent expenditurein excess of $100that causes the 5.14 aggregate of independent expenditures by that individual, 5.15 political committee, or political fund during that election 5.16 cycle to exceed $500 in a legislative race or $2,000 in a 5.17 statewide race, other than an expenditure by an association for 5.18 a communication targeted to inform solely its own dues-paying 5.19 members of the association's position on a candidate, the 5.20 individual, political committee, or political fund mustfile5.21with the board an affidavit notifying the boardpost on the 5.22 board's Web site a notice ofthe intent to makethe independent 5.23 expenditure andserveprovide a copy of theaffidavit onnotice 5.24 to each candidate in the affected race and on the treasurer of 5.25 the candidate's principal campaign committee. The purpose of 5.26 this notice is to inform the public that the communication was 5.27 not paid for by the candidate or by the public. 5.28 The notices must be received by the board and candidates 5.29 within the 24-hour period. Theaffidavitnotice must contain 5.30 the information with respect to the expenditure that is required 5.31 to be reported under subdivision 3, paragraph (g); except that 5.32 if an expenditure is reported before it is made, the notice must 5.33 include a reasonable estimate of the anticipated amount. Each 5.34 new expenditure requires a new notice. 5.35 (b) An individual or association that has made an 5.36 independent expenditure of which notice was required under this 6.1 subdivision must submit to the board within 24 hours after 6.2 disseminating a communication, a description of the content of 6.3 the communication for which the expenditure was made, including 6.4 a copy of any printed advertisement or a transcript of any 6.5 broadcast advertisement. 6.6 (c) An individual or the treasurer of a political committee 6.7 or political fund who fails to give notice as required by this 6.8 subdivision, or who files a false affidavit of notice, is guilty 6.9 of a gross misdemeanor and is subject to a civil fine of up to 6.10 four times the amount of the independent expenditure stated in 6.11 the notice or of which notice was required, whichever is greater. 6.12 (d) An affidavit of notice is false if it indicates that an 6.13 independent expenditure was made on behalf of one candidate when 6.14 the facts and circumstances show that the intent of the 6.15 expenditure was actually to defeat that candidate and benefit an 6.16 opponent. 6.17 Sec. 4. Minnesota Statutes 2000, section 10A.20, is 6.18 amended by adding a subdivision to read: 6.19 Subd. 15. [INTERNET PUBLICATION.] (a) The board must 6.20 publish the following information on its Web site: 6.21 (1) information reported under subdivision 3, paragraph 6.22 (b), by a principal campaign committee, except for the home 6.23 street addresses of contributors; and 6.24 (2) information reported on any independent expenditure 6.25 totaling $1,000 or more in any legislative district. 6.26 (b) The information must be published within seven days 6.27 after the report is due for pre-primary and pre-general election 6.28 reports. 6.29 (c) The publication must be in a form that permits a user 6.30 of the Web site to search the reports and prepare comparisons 6.31 and cross-tabulations among the various contributors and 6.32 principal campaign committees. 6.33 Sec. 5. Minnesota Statutes 2000, section 10A.25, 6.34 subdivision 1, is amended to read: 6.35 Subdivision 1. [LIMITS ARE VOLUNTARY.] The expenditure 6.36 limits imposed by this section on a candidate apply only to a 7.1 candidate who has signed an agreement under section 10A.322 to 7.2 be bound by them as a condition of receiving a public subsidy 7.3 for the candidate's campaign. The prohibition imposed by this 7.4 section on a political party applies only to a political party 7.5 that has signed an agreement under section 10A.322 to be bound 7.6 by it as a condition of receiving a public subsidy for the 7.7 party's activities or participating in the political 7.8 contribution refund program under section 290.06, subdivision 23. 7.9 Sec. 6. Minnesota Statutes 2000, section 10A.25, is 7.10 amended by adding a subdivision to read: 7.11 Subd. 14. [INDEPENDENT EXPENDITURES BY POLITICAL PARTIES.] 7.12 A political party or party unit must not make an independent 7.13 expenditure. 7.14 Sec. 7. Minnesota Statutes 2000, section 10A.25, is 7.15 amended by adding a subdivision to read: 7.16 Subd. 15. [MATCHING INDEPENDENT EXPENDITURES.] (a) Within 7.17 24 hours after receipt of a notice of independent expenditures 7.18 under section 10A.20, subdivision 6b, the board must notify each 7.19 candidate in the affected race of the amount of the independent 7.20 expenditure. For purposes of this subdivision, before the 7.21 primary election, "opponent" means the other candidates whose 7.22 names are on the ballot for the primary of the same major party 7.23 or, if there are none, the candidates whose names will be on the 7.24 ballot for the general election. 7.25 (b) If the independent expenditure advocates the defeat of 7.26 a candidate or the election of the candidate's opponent, the 7.27 spending limit of the candidate is increased by the amount of 7.28 the independent expenditure. 7.29 (c) An independent expenditure matching account is 7.30 established in the state treasury. $3,500,000 for each state 7.31 general election is appropriated from the general fund for 7.32 transfer to the independent expenditure matching account. The 7.33 money in the account is appropriated to the board to make loans 7.34 to candidates who: 7.35 (1) have agreed to be bound by the spending limits in this 7.36 section; 8.1 (2) are the targets of independent expenditures made during 8.2 the 14 days before a primary or election; and 8.3 (3) do not have enough money to respond to the independent 8.4 expenditure by exceeding their spending limit under paragraph 8.5 (b). 8.6 To receive a loan from the account, a candidate must agree 8.7 to repay the loan within six months. Repayments must be 8.8 credited to the account. 8.9 (d) The unobligated balance in the account on June 30 8.10 following the state general election is canceled to the general 8.11 fund. 8.12 (e) A candidate who is the target of an independent 8.13 expenditure may accept additional contributions from political 8.14 party units to match the amount of the independent expenditure. 8.15 (f) A candidate who is the target of an independent 8.16 expenditure for which no notice has been filed, posted, or 8.17 provided under section 10A.20, subdivision 6b, may make 8.18 additional expenditures under paragraph (b) in an amount equal 8.19 to the estimated amount of the independent expenditure. The 8.20 targeted candidate must file with the board an affidavit stating 8.21 the facts surrounding the unreported independent expenditure and 8.22 the basis for the estimated amount of the independent 8.23 expenditure. If the targeted candidate overestimates the amount 8.24 of an independent expenditure that is ultimately reported to the 8.25 board by more than $500 or ten percent of the independent 8.26 expenditure, whichever is less, the targeted candidate must pay 8.27 a penalty to the board of twice the amount of the overestimate. 8.28 (g) A candidate who obtains a loan under paragraph (c) and 8.29 additional contributions from political party units under 8.30 paragraph (e) must use the contributions to repay the loan. 8.31 Sec. 8. Minnesota Statutes 2000, section 10A.27, 8.32 subdivision 1, is amended to read: 8.33 Subdivision 1. [CONTRIBUTION LIMITS.](a)Except as 8.34 provided in subdivision 2, a candidate must not permit the 8.35 candidate's principal campaign committee to accept aggregate 8.36 contributions madeor deliveredby any individual, political 9.1 committee, or political fund in excess of the following: 9.2 (1) to candidates for governor and lieutenant governor 9.3 running together, $2,000 in an election year for the office 9.4 sought and $500 in other years; 9.5 (2) to a candidate for attorney general, $1,000 in an 9.6 election year for the office sought and $200 in other years; 9.7 (3) to a candidate for the office of secretary of state or 9.8 state auditor, $500 in an election year for the office sought 9.9 and $100 in other years; 9.10 (4) to a candidate for state senator, $500 in an election 9.11 year for the office sought and $100 in other years; and 9.12 (5) to a candidate for state representative, $500 in an 9.13 election year for the office sought and $100 in the other year. 9.14(b) The following deliveries are not subject to the9.15bundling limitation in this subdivision:9.16(1) delivery of contributions collected by a member of the9.17candidate's principal campaign committee, such as a block worker9.18or a volunteer who hosts a fund raising event, to the9.19committee's treasurer; and9.20(2) a delivery made by an individual on behalf of the9.21individual's spouse.9.22 Sec. 9. Minnesota Statutes 2000, section 10A.27, 9.23 subdivision 2, is amended to read: 9.24 Subd. 2. [POLITICAL PARTY LIMIT.] A candidate must not 9.25 permit the candidate's principal campaign committee to accept 9.26 contributions from any political party units in aggregate in 9.27 excess of ten times the amount that may be contributed to that 9.28 candidate as set forth in subdivision 1 or 20 times that amount 9.29 in the case of a candidate for state senator. 9.30 Sec. 10. Minnesota Statutes 2000, section 10A.27, 9.31 subdivision 10, is amended to read: 9.32 Subd. 10. [LIMITED PERSONAL CONTRIBUTIONSLIMITS ON 9.33 CANDIDATES WHO ACCEPT PUBLIC SUBSIDIES.] A candidate who accepts 9.34 a public subsidy may not: 9.35 (1) contribute to the candidate's own campaign during a 9.36 year more than ten times the candidate's election year 10.1 contribution limit under subdivision 1; or 10.2 (2) accept or permit the candidate's principal campaign 10.3 committee to accept any contribution from a lobbyist. 10.4 Sec. 11. Minnesota Statutes 2000, section 10A.275, 10.5 subdivision 1, is amended to read: 10.6 Subdivision 1. [EXCEPTIONS.] Notwithstanding other 10.7 provisions of this chapter, the following expenditures by a 10.8 party unit, or two or more party units acting together, with at 10.9 least one party unit being either: the state committee or the 10.10 party organization within a congressional district, county, or 10.11 legislative district, are not considered contributions to or 10.12 expenditures on behalf of a candidate for the purposes of 10.13 section 10A.25 or 10A.27 and must not be allocated to candidates 10.14 under section 10A.20, subdivision 3, paragraph (g): 10.15 (1) expenditures on behalf of candidates of that party 10.16 generally without referring to any of them specifically in a 10.17 published, posted, or broadcast advertisement; 10.18 (2) expenditures for the preparation, display, mailing, or 10.19 other distribution of an official party sample ballot 10.20 listing with roughly equal emphasis the names of three or more 10.21 individuals whose names are to appear on the ballot; or 10.22 (3) expenditures for a telephone conversationincluding10.23 mentioning with roughly equal emphasis the names of three or 10.24 more individuals whose names are to appear on the ballot;10.25(4) expenditures for a political party fundraising effort10.26on behalf of three or more candidates; or10.27(5) expenditures for party committee staff services that10.28benefit three or more candidates. 10.29 Sec. 12. Minnesota Statutes 2000, section 10A.28, 10.30 subdivision 1, is amended to read: 10.31 Subdivision 1. [EXCEEDING EXPENDITURE LIMITS.] (a) A 10.32 candidate subject to the expenditure limits in section 10A.25 10.33 who permits the candidate's principal campaign committee to make 10.34 expenditures or permits approved expenditures to be made on the 10.35 candidate's behalf in excess of the limits imposed by section 10.36 10A.25, as adjusted by section 10A.255, is subject to a civil 11.1 fine of up to four times the amount by which the expenditures 11.2 exceeded the limit. 11.3 (b) The chair of a political party or party unit subject to 11.4 the prohibition in section 10A.25 that makes expenditures in 11.5 violation of section 10A.25 is subject to a civil fine of up to 11.6 four times the amount of the expenditures. 11.7 Sec. 13. Minnesota Statutes 2000, section 10A.31, 11.8 subdivision 3a, is amended to read: 11.9 Subd. 3a. [QUALIFICATION OF POLITICAL PARTIES.] (a) A 11.10 major political party qualifies for inclusion on the income tax 11.11 form and property tax refund return as provided in subdivision 3 11.12 if it qualifies as a major political party by July 1 of the 11.13 taxable year. 11.14 (b) A minor political party qualifies for inclusion on the 11.15 income tax form and property tax refund return as provided in 11.16 subdivision 3 ifthe secretary of state certifies to the11.17commissioner of revenueit qualifies as a minor party statewide 11.18 by July 1 of the taxable yearthat the party satisfies the11.19following conditions:11.20(1) in the last general election, the party ran a candidate11.21for the office of governor and lieutenant governor, secretary of11.22state, state auditor, or attorney general, who received votes in11.23each county that in the aggregate total at least one percent of11.24the total number of individuals who voted in the election;11.25(2) it is a political party, not a principal campaign11.26committee; and11.27(3) it has held a state convention in the last two years11.28and an officer of the party has filed with the secretary of11.29state a certification to that effect. 11.30 The secretary of state shall notify each major and minor 11.31 political party by the first Monday in January of each 11.32 odd-numbered year of the conditions necessary for the party to 11.33 participate in income tax form and property tax refund return 11.34 programs. 11.35 The secretary of state shall notify each political party, 11.36 the commissioner of revenue, and the campaign finance and public 12.1 disclosure board by July 1 of each year and following 12.2 certification of the results of each general election of the 12.3 parties that qualify for inclusion on the income tax form and 12.4 property tax refund return as provided in subdivision 3. 12.5 A major or minor political party whose candidates fail to 12.6 receive a sufficient number of votes at a state general election 12.7 to retain major or minor party status loses that status as of 12.8 December 31 following the general election. 12.9 Sec. 14. Minnesota Statutes 2000, section 10A.31, 12.10 subdivision 5, is amended to read: 12.11 Subd. 5. [ALLOCATION.] (a) [GENERAL ACCOUNT.] In each 12.12 calendar year the money in the general account must be allocated 12.13 to candidates as follows: 12.14 (1) 21 percent for the offices of governor and lieutenant 12.15 governor together; 12.16 (2) 4.2 percent for the office of attorney general; 12.17 (3) 2.4 percent each for the offices of secretary of state 12.18 and state auditor; 12.19 (4) in each calendar year during the period in which state 12.20 senators serve a four-year term, 23-1/3 percent for the office 12.21 of state senator, and 46-2/3 percent for the office of state 12.22 representative; and 12.23 (5) in each calendar year during the period in which state 12.24 senators serve a two-year term, 35 percent each for the offices 12.25 of state senator and state representative. 12.26 (b) [PARTY ACCOUNT.] In each calendar year the money in 12.27 each party account must be allocated as follows: 12.28 (1) 14 percent for the offices of governor and lieutenant 12.29 governor together; 12.30 (2) 2.8 percent for the office of attorney general; 12.31 (3) 1.6 percent each for the offices of secretary of state 12.32 and state auditor; 12.33 (4) in each calendar year during the period in which state 12.34 senators serve a four-year term, 23-1/3 percent for the office 12.35 of state senator, and 46-2/3 percent for the office of state 12.36 representative; 13.1 (5) in each calendar year during the period in which state 13.2 senators serve a two-year term, 35 percent each for the offices 13.3 of state senator and state representative; and 13.4 (6) ten percent for the state committee of a political 13.5 party that has signed and filed with the board a spending limit 13.6 agreement under section 10A.322. 13.7 Money allocated to each state committee under clause (6) 13.8 must be deposited in a separate account and must be spent for 13.9 only those items enumerated in section 10A.275. Money allocated 13.10 to a state committee under clause (6) must be paid to the 13.11 committee by the board as it is received in the account on a 13.12 monthly basis, with payment on the 15th day of the calendar 13.13 month following the month in which the returns were processed by 13.14 the department of revenue, provided that these distributions 13.15 would be equal to 90 percent of the amount of money indicated in 13.16 the department of revenue's weekly unedited reports of income 13.17 tax returns and property tax refund returns processed in the 13.18 month, as notified by the department of revenue to the board. 13.19 The amounts paid to each state committee are subject to biennial 13.20 adjustment and settlement at the time of each certification 13.21 required of the commissioner of revenue under subdivisions 7 and 13.22 10. If the total amount of payments received by a state 13.23 committee for the period reflected on a certification by the 13.24 department of revenue is different from the amount that should 13.25 have been received during the period according to the 13.26 certification, each subsequent monthly payment must be increased 13.27 or decreased to the fullest extent possible until the amount of 13.28 the overpayment is recovered or the underpayment is distributed. 13.29 Money not allocated to a state committee under clause (6) 13.30 because the state committee has not signed and filed with the 13.31 board a spending limit agreement under section 10A.322 must be 13.32 canceled to the general fund. 13.33 Sec. 15. Minnesota Statutes 2000, section 10A.31, 13.34 subdivision 7, is amended to read: 13.35 Subd. 7. [DISTRIBUTION OF GENERAL ACCOUNT.] (a)Within two13.36weeks after certification by the state canvassing board ofAs 14.1 soon as the board has obtained the results of thegeneral14.2 primary election from the secretary of state, but no later than 14.3 one week after certification of the primary results by the state 14.4 canvassing board, the board must distribute the available money 14.5 in the general account, as certified by the commissioner of 14.6 revenue onNovemberSeptember 1 and according to allocations set 14.7 forth in subdivision 5, in equal amounts to all candidates of a 14.8 major political party whose names are to appear on the ballot in 14.9 the general election and who: 14.10 (1) have signed a spending limit agreement under section 14.11 10A.322; 14.12 (2) have filed the affidavit of contributions required by 14.13 section 10A.323; and 14.14 (3) were opposed in either the primary election or the 14.15 general election; and. 14.16(4) are either a candidate for statewide office who14.17received at least five percent of the votes cast in the general14.18election for that office or a candidate for legislative office14.19who received at least ten percent of the votes cast in the14.20general election for that seat.14.21 (b) The public subsidy under this subdivision may not be 14.22 paid in an amount that would cause the sum of the public subsidy 14.23 paid from the party account plus the public subsidy paid from 14.24 the general account to exceed 50 percent of the expenditure 14.25 limit for the candidate or 50 percent of the expenditure limit 14.26 that would have applied to the candidate if the candidate had 14.27 not been freed from expenditure limits under section 10A.25, 14.28 subdivision 10. Money from the general account not paid to a 14.29 candidate because of the 50 percent limit must be distributed 14.30 equally among all other qualifying candidates for the same 14.31 office until all have reached the 50 percent limit or the 14.32 balance in the general account is exhausted. 14.33 Sec. 16. Minnesota Statutes 2000, section 10A.31, is 14.34 amended by adding a subdivision to read: 14.35 Subd. 7a. [PENALTY FOR FAILING TO FILE REPORT.] Payments 14.36 under subdivisions 6 and 7 to a candidate who fails to file the 15.1 campaign report due before the primary must be reduced as 15.2 provided by this subdivision. Payments must be reduced or, if 15.3 the payments have already been made, a penalty must be assessed, 15.4 in the amount of: 15.5 (1) two percent per day from the first to the seventh day 15.6 after the report is due; and 15.7 (2) five percent per day from the eighth to the 21st day 15.8 after the report is due. 15.9 If a report is not filed by the 21st day after it is due, a 15.10 candidate must not receive any public subsidy under subdivision 15.11 6 or 7. 15.12 Sec. 17. Minnesota Statutes 2000, section 10A.322, is 15.13 amended to read: 15.14 10A.322 [SPENDING LIMIT AGREEMENTS.] 15.15 Subdivision 1. [AGREEMENT BY CANDIDATE.] (a) As a 15.16 condition of receiving a public subsidy, a candidate must sign 15.17 and file with the board a written agreement in which the 15.18 candidate agrees that the candidate will comply with sections 15.19 10A.25; 10A.27, subdivision 10; and 10A.324. 15.20 (b) Before the first day of filing for office, the board 15.21 must forward agreement forms to all filing officers. The board 15.22 must also provide agreement forms to candidates on request at 15.23 any time. The candidate must file the agreement with the board 15.24 bySeptemberAugust 1 preceding the candidate's general election 15.25 or a special election held at the general election. An 15.26 agreement may not be filed after that date. An agreement once 15.27 filed may not be rescinded. 15.28 (c) The board must notify the commissioner of revenue of 15.29 any agreementsignedfiled under this subdivision. 15.30 (d) Notwithstanding paragraph (b), if a vacancy occurs that 15.31 will be filled by means of a special election and the filing 15.32 period does not coincide with the filing period for the general 15.33 election, a candidate may sign andsubmitfile a spending limit 15.34 agreement not later than the day after the candidate files the 15.35 affidavit of candidacy or nominating petition for the office. 15.36Subd. 2. [HOW LONG AGREEMENT IS EFFECTIVE.](e) The 16.1 agreement, insofar as it relates to the expenditure limits in 16.2 section 10A.25, as adjusted by section 10A.255, and the 16.3 contribution limit in section 10A.27, subdivision 10, remains 16.4 effective for candidates until the dissolution of the principal 16.5 campaign committee of the candidate or the end of the first 16.6 election cycle completed after the agreement was filed, 16.7 whichever occurs first. 16.8 Subd. 2a. [AGREEMENT BY POLITICAL PARTY.] (a) As a 16.9 condition of receiving a public subsidy, the chair of the state 16.10 committee of a political party must sign and file with the board 16.11 a written agreement in which the state committee agrees that the 16.12 political party and all its party units will comply with section 16.13 10A.25. An agreement once filed may not be rescinded. 16.14 (b) The board must provide agreement forms to political 16.15 parties on request at any time. The state chair must file the 16.16 agreement with the board by February 1 in order to be allocated 16.17 money credited to the party account for the preceding taxable 16.18 year. 16.19 (c) The spending limit agreement remains in effect until 16.20 the end of the first general election cycle completed after the 16.21 agreement was filed or the dissolution of the political party, 16.22 whichever occurs first. 16.23 (d) The board must notify the commissioner of revenue of 16.24 any agreement filed under this subdivision. 16.25 Subd. 4. [REFUND RECEIPT FORMS; PENALTY.] The board must 16.26 make available to a political partyon request and to anyor 16.27 candidate for whom an agreement under this section is effective, 16.28 a supply of official refund receipt forms that state in boldface 16.29 type that (1) a contributor who is given a receipt form is 16.30 eligible to claim a refund as provided in section 290.06, 16.31 subdivision 23, and (2)if the contribution is to a candidate,16.32 that the candidate or political party has signed an agreement to 16.33 limit campaign expenditures as provided in this section. The 16.34 forms must provide duplicate copies of the receipt to be 16.35 attached to the contributor's claim. A candidate who does not 16.36 sign an agreement under this section and who willfully issues an 17.1 official refund receipt form or a facsimile of one to any of the 17.2 candidate's contributors is guilty of a misdemeanor. If the 17.3 state chair of a political party has not signed an agreement 17.4 under this section and the chair of a party unit willfully 17.5 issues an official refund receipt form or a facsimile of one to 17.6 any of the party's contributors, the chair of the party unit is 17.7 subject to a civil fine of up to $1,000. 17.8 Sec. 18. Minnesota Statutes 2000, section 200.02, 17.9 subdivision 23, is amended to read: 17.10 Subd. 23. [MINOR POLITICAL PARTY.] (a) "Minor political 17.11 party" means a political party that is not a major political 17.12 party as defined by subdivision 7 and that has adopted a state 17.13 constitution, designated a state party chair, held a state 17.14 convention in the last two years, filed with the secretary of 17.15 state a certification that the party has met the foregoing 17.16 requirements, and met the requirements of paragraph (b) or (c), 17.17 as applicable. 17.18 (b) To be considered a minor party in all elections 17.19 statewide, the political party must have presented at least one 17.20 candidate for a partisan office voted on statewide at the 17.21 preceding state general election for constitutional officers who 17.22 received votes in each county that in the aggregate equal at 17.23 least one percent of the total number of individuals who voted 17.24 in the election, or its members must have presented to the 17.25 secretary of state a nominating petition in a form prescribed by 17.26 the secretary of state containing the signatures of party 17.27 members in a number equal to at least one percent of the total 17.28 number of individuals who voted in the preceding state general 17.29 election. 17.30 (c) To be considered a minor party in an election in a 17.31 legislative district, the political party must have presented at 17.32 least one candidate for a legislative office in that district 17.33 who received votes from at least ten percent of the total number 17.34 of individuals who voted for that office, or its members must 17.35 have presented to the secretary of state a nominating petition 17.36 in a form prescribed by the secretary of state containing the 18.1 signatures of party members in a number equal to at least ten 18.2 percent of the total number of individuals who voted in the 18.3 preceding state general election for that legislative office. 18.4 Sec. 19. Minnesota Statutes 2000, section 211A.12, is 18.5 amended to read: 18.6 211A.12 [CONTRIBUTION LIMITS.] 18.7 A candidate or a candidate's committee may not accept 18.8 aggregate contributions madeor deliveredby an individual or 18.9 committee in excess of $300 in an election year for the office 18.10 sought and $100 in other years; except that a candidate or a 18.11 candidate's committee for an office whose territory has a 18.12 population over 100,000 may not accept aggregate contributions 18.13 made or delivered by an individual or committee in excess of 18.14 $500 in an election year for the office sought and $100 in other 18.15 years. 18.16The following deliveries are not subject to the bundling18.17limitation in this section:18.18(1) delivery of contributions collected by a member of the18.19candidate's committee, such as a block worker or a volunteer who18.20hosts a fundraising event, to the committee's treasurer; and18.21(2) a delivery made by an individual on behalf of the18.22individual's spouse.18.23Notwithstanding sections 211A.02, subdivision 3, and18.24410.21, this section supersedes any home rule charter.18.25 Sec. 20. Minnesota Statutes 2000, section 290.06, 18.26 subdivision 23, is amended to read: 18.27 Subd. 23. [REFUND OF CONTRIBUTIONS TO POLITICAL PARTIES 18.28 AND CANDIDATES.] (a) A taxpayer may claim a refund equal to the 18.29 amount of the taxpayer's contributions made in the calendar year 18.30 to candidates and to a political party. The maximum refund for 18.31 an individual must not exceed $50 and for a married couple, 18.32 filing jointly, must not exceed $100. A refund of a 18.33 contribution is allowed only if the taxpayer files a form 18.34 required by the commissioner and attaches to the form a copy of 18.35 an official refund receipt form issued by the candidate or party 18.36 and signed by the candidate, the treasurer of the candidate's 19.1 principal campaign committee, or the chair or treasurer of the 19.2 party unit, after the contribution was received. The receipt 19.3 forms must be numbered, and the data on the receipt that are not 19.4 public must be made available to the campaign finance and public 19.5 disclosure board upon its request. A claim must be filed with 19.6 the commissioner no sooner than January 1 of the calendar year 19.7 in which the contribution was made and no later than April 15 of 19.8 the calendar year following the calendar year in which the 19.9 contribution was made. A taxpayer may file only one claim per 19.10 calendar year. Amounts paid by the commissioner after June 15 19.11 of the calendar year following the calendar year in which the 19.12 contribution was made must include interest at the rate 19.13 specified in section 270.76. 19.14 (b) No refund is allowed under this subdivision for a 19.15 contribution to a candidate unless the candidate: 19.16 (1) has signed and filed an agreement to limit campaign 19.17 expenditures as provided in section 10A.322; 19.18 (2) is seeking an office for which voluntary spending 19.19 limits are specified in section 10A.25; and 19.20 (3) has designated a principal campaign committee. 19.21 This subdivision does not limit the campaign expenditures 19.22 of a candidate who does not sign an agreement but accepts a 19.23 contribution for which the contributor improperly claims a 19.24 refund. 19.25 No refund is allowed under this subdivision for a 19.26 contribution to a political party or party unit unless the state 19.27 chair of the political party has signed and filed an agreement 19.28 to limit campaign expenditures as provided in section 10A.322. 19.29 (c) For purposes of this subdivision, "political party" 19.30 means a major political party as defined in section 200.02, 19.31 subdivision 7, or a minor political party qualifying for 19.32 inclusion on the income tax or property tax refund form under 19.33 section 10A.31, subdivision 3a. 19.34 A "major party" or "minor party" includes the aggregate of 19.35 that party's organization within each house of the legislature, 19.36 the state party organization, and the party organization within 20.1 congressional districts, counties, legislative districts, 20.2 municipalities, and precincts. 20.3 "Candidate" means a candidate as defined in section 10A.01, 20.4 subdivision 10, except a candidate for judicial office. 20.5 "Contribution" means a gift of money. 20.6 (d) The commissioner shall make copies of the form 20.7 available to the public and candidates upon request. 20.8 (e) The following data collected or maintained by the 20.9 commissioner under this subdivision are private: the identities 20.10 of individuals claiming a refund, the identities of candidates 20.11 to whom those individuals have made contributions, and the 20.12 amount of each contribution. 20.13 (f) The commissioner shall report to the campaign finance 20.14 and public disclosure board by each August 1 a summary showing 20.15 the total number and aggregate amount of political contribution 20.16 refunds made on behalf of each candidate and each political 20.17 party. These data are public. 20.18 (g) The amount necessary to pay claims for the refund 20.19 provided in this section is appropriated from the general fund 20.20 to the commissioner of revenue. 20.21 Sec. 21. [NONSEVERABILITY.] 20.22 Notwithstanding Minnesota Statutes, section 645.20, if a 20.23 provision of section 7 (Minnesota Statutes, section 10A.25, 20.24 subdivision 15) is found to be unconstitutional and void, the 20.25 provisions of section 6 (Minnesota Statutes, section 10A.25, 20.26 subdivision 14) are also void. 20.27 Sec. 22. [EFFECTIVE DATE.] 20.28 This act is effective January 1, 2002, and applies to 20.29 contributions received and expenditures made on and after that 20.30 date.