SF 205

1st Unofficial Engrossment - 89th Legislature (2015 - 2016) Posted on 05/16/2015 08:05pm

1.1A bill for an act

1.2relating to campaign finance; modifying provisions related to the campaign
1.3finance and public disclosure board; making changes to provisions related to
1.4enforcement, registration, fees, data, contributions, statements of economic
1.5interest, and various other provisions administered by the board; providing
1.6penalties; making technical changes;amending Minnesota Statutes 2014,
1.7sections 10A.02, subdivision 11; 10A.03, subdivision 3; 10A.08, subdivision 1;
1.810A.09, subdivisions 6, 10; 10A.14, subdivisions 1, 1a, 4; 10A.17, subdivision
1.94; 10A.20, subdivisions 1, 2, 3; 10A.25, subdivision 10; 10A.27, subdivision
1.101; 10A.273, subdivisions 1, 3; 10A.322, subdivision 4; 10A.34, by adding a
1.11subdivision; 13.607, subdivision 5, by adding a subdivision; 211B.04; 211B.12;
1.12211B.15, subdivision 2; 211B.37; repealing Minnesota Statutes 2014, section
1.1310A.20, subdivision 1c; Minnesota Rules, part 4503.1500, subpart 2.
1.14BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.15    Section 1. Minnesota Statutes 2014, section 10A.02, subdivision 11, is amended to read:
1.16    Subd. 11. Violations; enforcement. (a) The board may investigate any alleged
1.17violation of this chapter. The board may also investigate an alleged violation of section
1.18211B.04 , 211B.12, or 211B.15 by or related to a candidate, treasurer, principal campaign
1.19committee, political committee, political fund, or party unit, as those terms are defined
1.20in this chapter.
1.21(1) Upon receipt of a written complaint filed with the board, the board shall promptly
1.22provide a copy of the complaint to the subject of the complaint and notify the subject that
1.23a determination as to whether the complaint states a prima facie violation will be made
1.24and that the subject may, within 15 days of the date the board provided notice to the
1.25subject, submit a written statement addressing the prima facie determination. The notice
1.26must include the definition of a prima facie determination.
1.27Within 30 days after the filing of the complaint, the board chair or another board
1.28member designated by the chair shall promptly make a determination as to whether the
2.1complaint alleges a prima facie violation. If a determination is made that the complaint
2.2does not allege a prima facie violation, the complaint shall be dismissed without prejudice
2.3and the complainant and the subject of the complaint must be promptly notified of the
2.4reasons the complaint did not allege a prima facie violation. The notice to the subject of
2.5the complaint must include a copy of the complaint. If the complainant files a revised
2.6complaint regarding the same facts and the same subject, the prima facie determination
2.7must be completed by a board member other than the member who made the initial
2.8determination and who does not support the same political party as the member who made
2.9the initial determination. The chair may order that the prima facie determination for any
2.10complaint be made by the full board and must order that the prima facie determination for
2.11a complaint being submitted for the third time be made by the full board.
2.12(2) If a determination is made that the complaint alleges a prima facie violation,
2.13the board shall, within 45 days of the prima facie determination, make findings and
2.14conclusions as to whether probable cause exists to believe the alleged violation that
2.15warrants a formal investigation has occurred. Any party filing a complaint and any party
2.16against whom a complaint is filed must be given an opportunity to be heard by the board
2.17prior to the board's determination as to whether probable cause exists to believe a violation
2.18that warrants a formal investigation has occurred.
2.19(3) Upon a determination by the board that probable cause exists to believe a
2.20violation that warrants a formal investigation has occurred, the board must undertake
2.21an investigation under subdivision 10 and must issue an order at the conclusion of
2.22the investigation, except that if the complaint alleges a violation of section 10A.25 or
2.2310A.27 , the board must either enter a conciliation agreement or make public findings and
2.24conclusions as to whether a violation has occurred and must issue an order within 60 days
2.25after the filing of the complaint probable cause determination has been made. Prior to
2.26making findings and conclusions in an investigation, the board must offer the subject of
2.27the complaint an opportunity to answer the allegations of the complaint in writing and
2.28to appear before the board to address the matter. The deadline for action on a written
2.29complaint may be extended by majority vote of the board.
2.30(b) The board may bring legal actions or negotiate settlements in its own name to
2.31recover money raised from contributions subject to the conditions in this paragraph.
2.32(1) No action may be commenced unless the board has made a formal determination,
2.33after an investigation, that the money was raised for political purposes as defined in
2.34section 211B.01, subdivision 6, and that the money was used for purposes not permitted
2.35under this chapter or under section 211B.12.
3.1(2) Prior to commencing an action, the board must give the association whose money
3.2was misused written notice by certified mail of its intent to take action under this subdivision
3.3and must give the association a reasonable opportunity, for a period of not less than 90
3.4days, to recover the money without board intervention. This period must be extended
3.5for at least an additional 90 days for good cause if the association is actively pursuing
3.6recovery of the money. The board may not commence a legal action under this subdivision
3.7if the association has commenced a legal action for the recovery of the same money.
3.8(3) Any funds recovered under this subdivision must be deposited in a campaign
3.9finance recovery account in the special revenue fund and are appropriated as follows:
3.10(i) an amount equal to the board's actual costs and disbursements in the action,
3.11including court reporter fees for depositions taken in the course of an investigation, is
3.12appropriated to the board for its operations;
3.13(ii) an amount equal to the reasonable value of legal services provided by the Office
3.14of the Attorney General in the recovery matter, calculated on the same basis as is used
3.15for charging legal fees to state agencies, is appropriated to the attorney general for the
3.16attorney general's operations; and
3.17(iii) any remaining balance is appropriated to the board for distribution to the
3.18association to which the money was originally contributed.
3.19(4) Notwithstanding clause (3), item (iii), if the candidate of a principal campaign
3.20committee is the person who used the association's money for illegal purposes, or if the
3.21association or political fund whose money was misused is no longer registered with the
3.22board, any money remaining after the payments specified in clause (3), items (i) and (ii),
3.23must be transferred to the general account of the state elections campaign account.
3.24(5) Any action by the board under this paragraph must be commenced not later than
3.25four years after the improper use of money is shown on a report filed with the board or the
3.26board has actual knowledge of improper use. No action may be commenced under this
3.27paragraph for improper uses disclosed on reports for calendar years prior to 2011.
3.28(6) If the board prevails in an action brought under this subdivision and the court
3.29makes a finding that the misuse of funds was willful, the court may enter judgment in favor
3.30of the board and against the person misusing the funds in the amount of the misused funds.
3.31(c) Within a reasonable time after beginning an investigation of an individual
3.32or association, the board must notify the individual or association of the fact of the
3.33investigation. The board must not make a finding that a violation has occurred without
3.34notifying the individual or association of the nature of the allegations and affording
3.35an opportunity to answer those allegations. After the board has sent notice of the
4.1investigation to the individual or association, the individual or association must preserve
4.2evidence related to the investigation.
4.3(d) A hearing before the board or action of the board concerning a complaint or
4.4investigation other than findings, conclusions, and orders or a conciliation agreement is
4.5confidential. Until the board makes a public finding or enters a conciliation agreement:
4.6(1) a member, employee, or agent of the board must not disclose to an individual
4.7information obtained by that member, employee, or agent concerning a complaint or
4.8investigation except as required to carry out the investigation or take action in the matter
4.9as authorized by this chapter; and
4.10(2) an individual who discloses information contrary to this subdivision is subject
4.11to a civil penalty imposed by the board of up to $1,000.
4.12(e) A matter that is under the board's jurisdiction pursuant to this section and that
4.13may result in a criminal offense must be finally disposed of by the board before the alleged
4.14violation may be prosecuted by a city or county attorney.

4.15    Sec. 2. Minnesota Statutes 2014, section 10A.03, subdivision 3, is amended to read:
4.16    Subd. 3. Failure to file. The board must send a notice by certified mail to any
4.17lobbyist who fails to file a registration form within five days after becoming a lobbyist. If
4.18a lobbyist fails to file a registration form within ten business days after the notice was sent
4.19by the date that the form was due, the board may impose a late filing fee of $5 $25 per day,
4.20not to exceed $100 $1,000, starting on the 11th day after the notice was sent form was due.
4.21The board must send an additional notice by certified mail to a lobbyist who fails to file a
4.22form within 14 ten business days after the first notice was sent by the board form was due
4.23that the lobbyist may be subject to a civil penalty for failure to file the form. A lobbyist
4.24who fails to file a form within seven days after the second certified mail notice was sent by
4.25the board is subject to a civil penalty imposed by the board of up to $1,000.

4.26    Sec. 3. Minnesota Statutes 2014, section 10A.08, subdivision 1, is amended to read:
4.27    Subdivision 1. Disclosure required. A public official who represents a client for a
4.28fee before an individual, board, commission, or agency that has rulemaking authority in a
4.29hearing conducted under chapter 14, must disclose the official's participation in the action
4.30to the board within 14 days after the appearance. If the public official fails to disclose the
4.31participation within ten business days after by the date that the disclosure required by this
4.32section was due, the board may impose a late filing fee of $5 $25 per day, not to exceed
4.33$100 $1,000, starting on the 11th day after the disclosure was due. The board must send
4.34notice by certified mail to a public official who fails to disclose the participation within
5.1ten business days after the disclosure was due that the public official may be subject to a
5.2civil penalty for failure to disclose the participation. A public official who fails to disclose
5.3the participation within seven days after the certified mail notice was sent by the board is
5.4subject to a civil penalty imposed by the board of up to $1,000.

5.5    Sec. 4. Minnesota Statutes 2014, section 10A.09, subdivision 6, is amended to read:
5.6    Subd. 6. Supplementary Annual statement. Each individual who is required to
5.7file a statement of economic interest must also file a supplementary an annual statement
5.8on by April 15 of each year that the individual remains in office if information on the
5.9most recently filed statement has changed. The annual statement must cover the period
5.10through March 31 of the year the statement is due. The supplementary annual statement, if
5.11required, must include the amount of each honorarium in excess of $50 received since the
5.12previous statement and the name and address of the source of the honorarium. The board
5.13must maintain a each annual statement of economic interest submitted by an officeholder
5.14in the same file with the statement submitted as a candidate.

5.15    Sec. 5. Minnesota Statutes 2014, section 10A.09, subdivision 10, is amended to read:
5.16    Subd. 10. Board audits; data classification. All data related to an audit, including
5.17the existence of the audit, are classified as confidential data on individuals, as defined in
5.18section 13.02, subdivision 3, or protected nonpublic data, as defined in section 13.02,
5.19subdivision 13. A member, employee, or agent of the board must not disclose information
5.20obtained by the member, employee, or agent concerning the audit except as required to
5.21carry out the audit or take action in the matter. Upon completion of the audit, the board's
5.22final audit report is public. The final audit report must contain the name of the individual
5.23subject to the audit, a description of any audit findings, a description of any responses
5.24provided by the individual who was subject to the audit, and a description of the manner in
5.25which any findings were resolved.

5.26    Sec. 6. Minnesota Statutes 2014, section 10A.14, subdivision 1, is amended to read:
5.27    Subdivision 1. First registration. (a) The treasurer of a political committee,
5.28political fund, principal campaign committee, or party unit must register with the board by
5.29filing a registration statement. The registration statement must be filed by the earliest of
5.30the following dates:
5.31    (1) no later than 14 days after the committee, fund, or party unit has made a
5.32contribution, received contributions, or made expenditures in excess of $750,;
6.1    (2) no later than the next report of receipts and expenditures filing date applicable
6.2to the committee, fund, or party unit if the committee, fund, or party unit reached the
6.3threshold in clause (1) before the end of the reporting period covered by that report; or
6.4    (3) by the end of the next business day after it has received a loan or contribution
6.5that must be reported under section 10A.20, subdivision 5, whichever is earlier.
6.6    (b) This subdivision does not apply to ballot question or independent expenditure
6.7political committees or funds, which are subject to subdivision 1a.

6.8    Sec. 7. Minnesota Statutes 2014, section 10A.14, subdivision 1a, is amended to read:
6.9    Subd. 1a. Independent expenditure or ballot question political committees
6.10and funds; first registration; reporting. The treasurer of an independent expenditure
6.11or ballot question political committee or fund must register with the board by filing a
6.12registration statement. The registration must be filed by the earliest of the following dates:
6.13(1) no later than 14 calendar days after the committee or the association registering
6.14the political fund has:
6.15(i) received aggregate contributions for independent expenditures of more than
6.16$1,500 in a calendar year;
6.17(ii) received aggregate contributions for expenditures to promote or defeat a ballot
6.18question of more than $5,000 in a calendar year;
6.19(iii) made aggregate independent expenditures of more than $1,500 in a calendar
6.20year; or
6.21(iv) made aggregate expenditures to promote or defeat a ballot question of more
6.22than $5,000 in a calendar year; or
6.23(2) no later than the next report of receipts and expenditures filing date applicable
6.24to the independent expenditure or ballot question committee or fund if the committee or
6.25fund reached the threshold in clause (1) before the end of the reporting period covered by
6.26that report; or
6.27(3) by the end of the next business day after it has received a loan or contribution
6.28that must be reported under section 10A.20, subdivision 5, and it has met one of the
6.29requirements of clause (1).

6.30    Sec. 8. Minnesota Statutes 2014, section 10A.14, subdivision 4, is amended to read:
6.31    Subd. 4. Failure to file; penalty. If an individual fails to file a statement required by
6.32this section within ten business days after by the date that the statement was due, the board
6.33may impose a late filing fee of $5 $25 per day, not to exceed $100 $1,000, commencing
6.34with the 11th starting on the day after the statement was due.
7.1The board must send notice by certified mail to any individual who fails to file a
7.2statement within ten business days after the statement was due that the individual may be
7.3subject to a civil penalty for failure to file the statement. An individual who fails to file the
7.4statement within seven days after the certified mail notice was sent by the board is subject
7.5to a civil penalty imposed by the board of up to $1,000.

7.6    Sec. 9. Minnesota Statutes 2014, section 10A.17, subdivision 4, is amended to read:
7.7    Subd. 4. Independent expenditures. (a) Except as provided in paragraphs (b) and
7.8(c), an individual, political committee, political fund, principal campaign committee,
7.9or party unit that independently solicits or accepts contributions or makes independent
7.10expenditures on behalf of a candidate must publicly disclose that the expenditure is an
7.11independent expenditure. All written communications with those from whom contributions
7.12are independently solicited or accepted or to whom independent expenditures are made
7.13on behalf of a candidate must contain a statement in conspicuous type that the activity
7.14is an independent expenditure and is not approved by the candidate nor is the candidate
7.15responsible for it. Similar language must be included in all oral communications, in
7.16conspicuous type on the front page of all literature and advertisements published or posted,
7.17and at the end of all broadcast advertisements made by that individual, political committee,
7.18political fund, principal campaign committee, or party unit on the candidate's behalf.
7.19(b) Paragraph (a) does not apply to individuals or associations that are not required
7.20to register or report under this chapter.
7.21(c) Paragraph (a) does not apply to the following:
7.22(1) bumper stickers, pins, buttons, pens, or similar small items on which the
7.23independent expenditure statement cannot be conveniently printed;
7.24(2) skywriting, wearing apparel, or other means of displaying an advertisement
7.25of such a nature that the inclusion of the independent expenditure statement would be
7.26impracticable; and
7.27(3) online banner ads and similar electronic communications that link directly to an
7.28online page that includes the independent expenditure statement.

7.29    Sec. 10. Minnesota Statutes 2014, section 10A.20, subdivision 1, is amended to read:
7.30    Subdivision 1. First filing; duration. (a) The treasurer of a political committee,
7.31political fund, principal campaign committee, or party unit must begin to file the reports
7.32required by this section for the first year it receives contributions or makes expenditures
7.33that require it to register under section 10A.14 and must continue to file until the
7.34committee, fund, or party unit is terminated.
8.1(b) If, on or before the last date included in a reporting period, a political committee,
8.2political fund, principal campaign committee, or party unit received contributions or
8.3made expenditures that would require it to register under section 10A.14, the political
8.4committee, political fund, principal campaign committee, or party unit must both register
8.5with the board under section 10A.14 and report under this section by the date that the
8.6report for that reporting period is due.
8.7(c) The reports must be filed electronically in a standards-based open format
8.8specified by the board. For good cause shown, the board must grant exemptions to the
8.9requirement that reports be filed electronically.

8.10    Sec. 11. Minnesota Statutes 2014, section 10A.20, subdivision 2, is amended to read:
8.11    Subd. 2. Time for filing. (a) The reports must be filed with the board on or before
8.12January 31 of each year and additional reports must be filed as required and in accordance
8.13with paragraphs (b) to (f).
8.14(b) In each year in which the name of a candidate for legislative or district court
8.15judicial office is on the ballot, the report of the principal campaign committee must be
8.16filed 15 days before a primary election and ten days before a general election, seven
8.17days before a special primary election and seven days before a special general election,
8.18and ten days after a special election cycle.
8.19(c) In each general election year, a political committee, a political fund, a state party
8.20committee, and a party unit established by all or a part of the party organization within a
8.21house of the legislature must file reports on the following schedule:
8.22(1) a first-quarter report covering the calendar year through March 31, which is
8.23due April 14;
8.24(2) a report covering the calendar year through May 31, which is due June 14;
8.25(3) a pre-primary-election report due 15 days before a primary election;
8.26(4) a pre-general-election report due 42 days before the general election; and
8.27(5) a pre-general-election report due ten days before a general election.
8.28(d) In each general election year, a party unit not included in paragraph (c) must file
8.29reports 15 days before a primary election and ten days before a general election.
8.30(e) In each year in which a constitutional office or appellate court judicial seat is
8.31on the ballot, the principal campaign committee of a candidate for that office or seat
8.32must file reports on the following schedule:
8.33(1) a first-quarter report covering the calendar year through March 31, which is
8.34due April 14;
8.35(2) a report covering the calendar year through May 31, which is due June 14;
9.1(3) a pre-primary-election report due 15 days before a primary election;
9.2(4) a pre-general-election report due 42 days before the general election;
9.3(5) a pre-general-election report due ten days before a general election; and
9.4(6) for a special election, a constitutional office candidate whose name is on the
9.5ballot must file reports seven days before a special primary election, seven days before a
9.6special general election, and ten days after a special election cycle.
9.7(f) Notwithstanding paragraphs (a) to (e):
9.8(1) the principal campaign committee of a candidate who did not file for office is not
9.9required to file the report due June 14, the report due 15 days before the primary election,
9.10or the report due seven days before a special primary election; and
9.11(2) the principal campaign committee of a candidate whose name will not be on the
9.12general election ballot is not required to file the report due 42 days before the general
9.13election, the report due ten days before a general election, or the report due seven days
9.14before a special general election.

9.15    Sec. 12. Minnesota Statutes 2014, section 10A.20, subdivision 3, is amended to read:
9.16    Subd. 3. Contents of report. (a) The report required by this section must include
9.17each of the items listed in paragraphs (b) to (o) that are applicable to the filer. The board
9.18shall prescribe forms based on filer type indicating which of those items must be included
9.19on the filer's report.
9.20(b) The report must disclose the amount of liquid assets on hand at the beginning
9.21of the reporting period.
9.22(c) The report must disclose the name, address, and employer, or occupation if
9.23self-employed, and registration number if registered with the board, of each individual or
9.24association that has made one or more contributions to the reporting entity, including the
9.25purchase of tickets for a fund-raising effort, that in aggregate within the year exceed $200
9.26for legislative or statewide candidates or more than $500 for ballot questions, together
9.27with the amount and date of each contribution, and the aggregate amount of contributions
9.28within the year from each source so disclosed. A donation in kind must be disclosed at
9.29its fair market value. An approved expenditure must be listed as a donation in kind. A
9.30donation in kind is considered consumed in the reporting period in which it is received.
9.31The names of contributors must be listed in alphabetical order. Contributions from the
9.32same contributor must be listed under the same name. When a contribution received from
9.33a contributor in a reporting period is added to previously reported unitemized contributions
9.34from the same contributor and the aggregate exceeds the disclosure threshold of this
10.1paragraph, the name, address, and employer, or occupation if self-employed, of the
10.2contributor must then be listed on the report.
10.3(d) The report must disclose the sum of contributions to the reporting entity during
10.4the reporting period.
10.5(e) The report must disclose each loan made or received by the reporting entity
10.6within the year in aggregate in excess of $200, continuously reported until repaid or
10.7forgiven, together with the name, address, occupation, and principal place of business, if
10.8any, and registration number if registered with the board of the lender and any endorser
10.9and the date and amount of the loan. If a loan made to the principal campaign committee
10.10of a candidate is forgiven or is repaid by an entity other than that principal campaign
10.11committee, it must be reported as a contribution for the year in which the loan was made.
10.12(f) The report must disclose each receipt over $200 during the reporting period not
10.13otherwise listed under paragraphs (c) to (e).
10.14(g) The report must disclose the sum of all receipts of the reporting entity during
10.15the reporting period.
10.16(h) The report must disclose the name and, address, and registration number if
10.17registered with the board of each individual or association to whom aggregate expenditures,
10.18approved expenditures, independent expenditures, and ballot question expenditures have
10.19been made by or on behalf of the reporting entity within the year in excess of $200, together
10.20with the amount, date, and purpose of each expenditure and the name and address of, and
10.21office sought by, each candidate on whose behalf the expenditure was made, identification
10.22of the ballot question that the expenditure was intended to promote or defeat and an
10.23indication of whether the expenditure was to promote or to defeat the ballot question, and
10.24in the case of independent expenditures made in opposition to a candidate, the candidate's
10.25name, address, and office sought. A reporting entity making an expenditure on behalf of
10.26more than one candidate for state or legislative office must allocate the expenditure among
10.27the candidates on a reasonable cost basis and report the allocation for each candidate.
10.28(i) The report must disclose the sum of all expenditures made by or on behalf of the
10.29reporting entity during the reporting period.
10.30(j) The report must disclose the amount and nature of an advance of credit incurred
10.31by the reporting entity, continuously reported until paid or forgiven. If an advance of credit
10.32incurred by the principal campaign committee of a candidate is forgiven by the creditor or
10.33paid by an entity other than that principal campaign committee, it must be reported as a
10.34donation in kind for the year in which the advance of credit was made.
10.35(k) The report must disclose the name and, address, and registration number if
10.36registered with the board of each political committee, political fund, principal campaign
11.1committee, or party unit to which contributions have been made that aggregate in excess
11.2of $200 within the year and the amount and date of each contribution.
11.3(l) The report must disclose the sum of all contributions made by the reporting
11.4entity during the reporting period.
11.5(m) The report must disclose the name and, address, and registration number
11.6if registered with the board of each individual or association to whom noncampaign
11.7disbursements have been made that aggregate in excess of $200 within the year by or on
11.8behalf of the reporting entity and the amount, date, and purpose of each noncampaign
11.9disbursement.
11.10(n) The report must disclose the sum of all noncampaign disbursements made within
11.11the year by or on behalf of the reporting entity.
11.12(o) The report must disclose the name and address of a nonprofit corporation that
11.13provides administrative assistance to a political committee or political fund as authorized
11.14by section 211B.15, subdivision 17, the type of administrative assistance provided, and the
11.15aggregate fair market value of each type of assistance provided to the political committee
11.16or political fund during the reporting period.

11.17    Sec. 13. Minnesota Statutes 2014, section 10A.25, subdivision 10, is amended to read:
11.18    Subd. 10. Effect of opponent's conduct. (a) After the deadline for filing a spending
11.19limit agreement under section 10A.322, a candidate who has agreed to be bound by the
11.20expenditure limits imposed by this section as a condition of receiving a public subsidy
11.21for the candidate's campaign may choose to be released from the expenditure limits but
11.22remain eligible to receive a public subsidy if the candidate has an opponent who has
11.23not agreed to be bound by the limits and has received contributions or made or become
11.24obligated to make expenditures during that election cycle in excess of the following limits:
11.25(1) up to the close of the reporting period before the primary election, receipts or
11.26expenditures equal to 20 percent of the election segment expenditure limit for that office
11.27as set forth in subdivision 2; or
11.28(2) after the close of the reporting period before the primary election, cumulative
11.29receipts or expenditures during that election cycle equal to 50 percent of the election cycle
11.30expenditure limit for that office as set forth in subdivision 2.
11.31Before the primary election, a candidate's "opponents" are only those who will
11.32appear on the ballot of the same party in the primary election.
11.33(b) A candidate who has not agreed to be bound by expenditure limits, or the
11.34candidate's principal campaign committee, must file written notice with the board and
11.35provide written notice to any opponent of the candidate for the same office within 24 hours
12.1of exceeding the limits in paragraph (a). The notice must state only that the candidate or
12.2candidate's principal campaign committee has received contributions or made or become
12.3obligated to make campaign expenditures in excess of the limits in paragraph (a).
12.4(c) Upon receipt of the notice, a candidate who had agreed to be bound by the limits
12.5may file with the board a notice that the candidate chooses to be no longer bound by the
12.6expenditure limits. A notice of a candidate's choice not to be bound by the expenditure
12.7limits that is based on the conduct of an opponent in the state primary election may not
12.8be filed more than one day after the State Canvassing Board has declared the results
12.9of the state primary.
12.10(d) A candidate who has agreed to be bound by the expenditure limits imposed
12.11by this section and whose opponent in the general election has chosen, as provided in
12.12paragraph (c), not to be bound by the expenditure limits because of the conduct of an
12.13opponent in the primary election is no longer bound by the limits but remains eligible to
12.14receive a public subsidy.

12.15    Sec. 14. Minnesota Statutes 2014, section 10A.27, subdivision 1, is amended to read:
12.16    Subdivision 1. Contribution limits. (a) Except as provided in subdivision 2,
12.17a candidate must not permit the candidate's principal campaign committee to accept
12.18aggregate contributions made or delivered by any individual, political committee, political
12.19fund, or association not registered with the board in excess of the following:
12.20(1) to candidates for governor and lieutenant governor running together, $4,000
12.21in the election segment of an election cycle for the office sought and $2,000 in the
12.22nonelection segment of the election cycle;
12.23(2) to a candidate for attorney general, $2,500 in the election segment of an election
12.24cycle for the office sought and $1,500 in the nonelection segment of the election cycle;
12.25(3) to a candidate for secretary of state or state auditor, $2,000 in the election
12.26segment of an election cycle and $1,000 in the nonelection segment of the election cycle;
12.27(4) to a candidate for state senator, $1,000 in the election segment of an election
12.28cycle for the office sought and $1,000 in a nonelection segment of the election cycle;
12.29(5) to a candidate for state representative, $1,000 in the election segment of an
12.30election cycle for the office sought; and
12.31(6) to a candidate for judicial office, $2,500 in the election segment of an election
12.32cycle for the office sought and $1,000 $2,500 in a nonelection segment of the election cycle.
12.33(b) The following deliveries are not subject to the bundling limitation in this
12.34subdivision:
13.1(1) delivery of contributions collected by a member of the candidate's principal
13.2campaign committee, such as a block worker or a volunteer who hosts a fund-raising
13.3event, to the committee's treasurer; and
13.4(2) a delivery made by an individual on behalf of the individual's spouse.
13.5(c) A lobbyist, political committee, political party unit, an association that has a
13.6political fund, or an association not registered with the board must not make a contribution
13.7a candidate is prohibited from accepting.

13.8    Sec. 15. Minnesota Statutes 2014, section 10A.273, subdivision 1, is amended to read:
13.9    Subdivision 1. Contributions during legislative session. (a) A candidate for the
13.10legislature or for constitutional office, the candidate's principal campaign committee, or
13.11a political committee or party unit established by all or a part of the party organization
13.12within a house of the legislature, must not solicit or accept a contribution from a
13.13registered lobbyist, political committee, political fund, or an association not registered
13.14with the board, or a party unit established by the party organization within a house of the
13.15legislature, during a regular session of the legislature.
13.16(b) A registered lobbyist, political committee, political fund, or an association not
13.17registered with the board, or a party unit established by the party organization within a
13.18house of the legislature, must not make a contribution to a candidate for the legislature
13.19or for constitutional office, the candidate's principal campaign committee, or a political
13.20committee or party unit established by all or a part of the party organization within a house
13.21of the legislature during a regular session of the legislature.

13.22    Sec. 16. Minnesota Statutes 2014, section 10A.273, subdivision 3, is amended to read:
13.23    Subd. 3. Definition. For purposes of this section, a "regular session" includes the
13.24entire first day and the entire last day of each annual session. For purposes of this section,
13.25"regular session" does not include a special session or the interim between the two annual
13.26sessions of a biennium.

13.27    Sec. 17. Minnesota Statutes 2014, section 10A.322, subdivision 4, is amended to read:
13.28    Subd. 4. Refund receipt forms; penalty. (a) The board must make available to a
13.29political party on request and to any candidate for whom an agreement under this section
13.30is effective, a supply of official refund receipt forms that state in boldface type that:
13.31(1) a contributor who is given a receipt form is eligible to claim a refund as provided
13.32in section 290.06, subdivision 23; and
14.1(2) if the contribution is to a candidate, that the candidate has signed an agreement to
14.2limit campaign expenditures as provided in this section.
14.3The forms must provide duplicate copies of the receipt to be attached to the contributor's
14.4claim.
14.5(b) The willful issuance of an official refund receipt form or a facsimile of one to
14.6any of the candidate's contributors by a candidate or treasurer of a candidate who did not
14.7sign an agreement under this section is subject to a civil penalty of up to $3,000 imposed
14.8by the board.
14.9(c) The willful issuance of an official refund receipt form or a facsimile to an
14.10individual not eligible to claim a refund under section 290.06, subdivision 23, is subject
14.11to a civil penalty of up to $3,000 imposed by the board.
14.12(d) A violation of paragraph (b) or (c) is a misdemeanor.

14.13    Sec. 18. Minnesota Statutes 2014, section 10A.34, is amended by adding a subdivision
14.14to read:
14.15    Subd. 4. Penalty for violations of chapter 211B under board's jurisdiction. If
14.16a civil penalty is not specified in a section of chapter 211B brought under the board's
14.17jurisdiction by section 10A.02, subdivision 11, paragraph (a), the board may impose
14.18a civil penalty of up to $3,000.

14.19    Sec. 19. Minnesota Statutes 2014, section 13.607, is amended by adding a subdivision
14.20to read:
14.21    Subd. 3a. Campaign Finance and Public Disclosure Board audit data. The
14.22record of certain audits conducted under chapter 10A is classified, and disposition of
14.23certain information is governed, by section 10A.09, subdivision 10.

14.24    Sec. 20. Minnesota Statutes 2014, section 13.607, subdivision 5, is amended to read:
14.25    Subd. 5. Statements of economic interest. (a) Disclosure of statements of
14.26economic interest filed by local officials is governed by section 10A.09, subdivision 6a.
14.27(b) Data related to audits of statements of economic interest are governed by section
14.2810A.09, subdivision 10.

14.29    Sec. 21. Minnesota Statutes 2014, section 211B.04, is amended to read:
14.30211B.04 CAMPAIGN LITERATURE MUST INCLUDE DISCLAIMER.
14.31(a) A person who participates in the preparation or dissemination of campaign
14.32material other than as provided in section 211B.05, subdivision 1, that does not
15.1prominently include the name and address of the person or committee causing the material
15.2to be prepared or disseminated in a disclaimer substantially in the form provided in
15.3paragraph (b) or (c) is guilty of a misdemeanor.
15.4(b) Except in cases covered by paragraph (c), the required form of disclaimer is:
15.5"Prepared and paid for by the .......... committee, .........(address)" for material prepared
15.6and paid for by a principal campaign committee, or "Prepared and paid for by the ..........
15.7committee, .........(address), in support of .........(insert name of candidate or ballot
15.8question)" for material prepared and paid for by a person or committee other than a
15.9principal campaign committee. If the material is produced and disseminated without cost,
15.10the words "paid for" may be omitted from the disclaimer.
15.11(c) In the case of broadcast media, the required form of disclaimer is: "Paid for
15.12by the ............ committee." If the material is produced and broadcast without cost, the
15.13required form of the disclaimer is: "The ............ committee is responsible for the content
15.14of this message."
15.15(d) Campaign material that is not circulated on behalf of a particular candidate
15.16or ballot question must also include in the disclaimer either that it is "in opposition
15.17to.....(insert name of candidate or ballot question.....)"; or that "this publication is not
15.18circulated on behalf of any candidate or ballot question."
15.19(e) This section does not apply to objects stating only the candidate's name and the
15.20office sought, fund-raising tickets, or business cards, personal letters, or similar items that
15.21are clearly being sent distributed by the candidate.
15.22(f) (e) This section does not apply to an individual or association who acts
15.23independently of any candidate, candidate's committee, political committee, or political
15.24fund and spends only from the individual's or association's own resources a sum that is less
15.25than $2,000 in the aggregate to produce or distribute campaign material that is distributed
15.26at least seven days before the election to which the campaign material relates that is not
15.27required to register or report under chapter 10A or 211A.
15.28(f) This section does not apply to the following:
15.29(1) bumper stickers, pins, buttons, pens, or similar small items on which the
15.30disclaimer cannot be conveniently printed;
15.31(2) skywriting, wearing apparel, or other means of displaying an advertisement of
15.32such a nature that the inclusion of a disclaimer would be impracticable; and
15.33(3) online banner ads and similar electronic communications that link directly to an
15.34online page that includes the disclaimer.
15.35(g) This section does not modify or repeal section 211B.06.

16.1    Sec. 22. Minnesota Statutes 2014, section 211B.12, is amended to read:
16.2211B.12 LEGAL EXPENDITURES.
16.3    Use of money collected for political purposes is prohibited unless the use is
16.4reasonably related to the conduct of election campaigns, or is a noncampaign disbursement
16.5as defined in section 10A.01, subdivision 26. The following are permitted expenditures
16.6when made for political purposes:
16.7    (1) salaries, wages, and fees;
16.8    (2) communications, mailing, transportation, and travel;
16.9    (3) campaign advertising;
16.10    (4) printing;
16.11    (5) office and other space and necessary equipment, furnishings, and incidental
16.12supplies;
16.13    (6) charitable contributions of not more than $100 to any charity organized
16.14under section 501(c)(3) of the Internal Revenue Code annually, except that the amount
16.15contributed by a is not limited by this clause if the political committee, political fund,
16.16party unit, principal campaign committee, or from the campaign fund of a candidate for
16.17political subdivision office that made the contribution dissolves within one year after the
16.18contribution is made is not limited by this clause; and
16.19    (7) other expenses, not included in clauses (1) to (6), that are reasonably related to
16.20the conduct of election campaigns. In addition, expenditures made for the purpose of
16.21providing information to constituents, whether or not related to the conduct of an election,
16.22are permitted expenses. Money collected for political purposes and assets of a political
16.23committee or political fund may not be converted to personal use.

16.24    Sec. 23. Minnesota Statutes 2014, section 211B.15, subdivision 2, is amended to read:
16.25    Subd. 2. Prohibited contributions. (a) A corporation may not make a contribution
16.26or offer or agree to make a contribution directly or indirectly, of any money, property, free
16.27service of its officers, employees, or members, or thing of monetary value to a major
16.28political party, organization, committee, or individual to promote or defeat the candidacy
16.29of an individual for nomination, election, or appointment to a political office.
16.30(b) A political party, organization, committee, or individual may not accept a
16.31contribution or an offer or agreement to make a contribution that a corporation is
16.32prohibited from making under paragraph (a).
16.33(c) For the purpose of this subdivision, "contribution" includes an expenditure to
16.34promote or defeat the election or nomination of a candidate to a political office that is
16.35made with the authorization or expressed or implied consent of, or in cooperation or in
17.1concert with, or at the request or suggestion of, a candidate or committee established to
17.2support or oppose a candidate but does not include an independent expenditure authorized
17.3by subdivision 3.

17.4    Sec. 24. Minnesota Statutes 2014, section 211B.37, is amended to read:
17.5211B.37 COSTS ASSESSED.
17.6Except as otherwise provided in section 211B.36, subdivision 3, the chief
17.7administrative law judge shall assess the cost of considering complaints filed under section
17.8211B.32 as provided in this section. Costs of complaints relating to a statewide ballot
17.9question or an election for a statewide or legislative office must be assessed against the
17.10appropriation from the general fund to the general account of the state elections campaign
17.11account in section 10A.31, subdivision 4 paid from appropriations to the office for this
17.12purpose. Costs of complaints relating to any other ballot question or elective office must
17.13be paid from appropriations to the office for this purpose.

17.14    Sec. 25. REVISOR'S INSTRUCTION.
17.15The revisor of statutes shall renumber the provisions of Minnesota Statutes listed
17.16in column A to the references listed in column B. The revisor shall also make necessary
17.17cross-reference changes in Minnesota Statutes and Minnesota Rules consistent with the
17.18renumbering.

17.19		Column A	Column B
17.20		10A.02, subd. 9	10A.022, subd. 1
17.21 17.22		10A.02, subd. 10, paragraphs (a) and (b)	10A.022, subd. 2
17.23		10A.02, subd. 10, paragraph (c)	10A.02, subd. 13, paragraph (b)
17.24		10A.02, subd. 11, paragraph (a)	10A.022, subd. 3
17.25		10A.02, subd. 11, paragraph (b)	10A.022, subd. 8
17.26		10A.02, subd. 11, paragraph (c)	10A.022, subd. 4
17.27		10A.02, subd. 11, paragraph (d)	10A.022, subd. 5, paragraph (a)
17.28		10A.02, subd. 11, paragraph (e)	10A.022, subd. 7
17.29		10A.02, subd. 11a	10A.022, subd. 5, paragraph (b)
17.30		10A.02, subd. 13	10A.02, subd. 13, paragraph (a)
17.31		10A.09, subd. 10	10A.022, subd. 6

17.32    Sec. 26. REPEALER.
17.33Minnesota Statutes 2014, section 10A.20, subdivision 1c, and Minnesota Rules,
17.34part 4503.1500, subpart 2, are repealed.

18.1    Sec. 27. EFFECTIVE DATE.
18.2    This act is effective the day following final enactment.