SF 2732

as introduced - 93rd Legislature (2023 - 2024) Posted on 06/07/2023 11:45am

A bill for an act
relating to campaign finance; regulating electioneering communications; requiring
statements of electioneering communications to be submitted to the Campaign
Finance and Public Disclosure Board; adopting relevant definitions; amending
Minnesota Statutes 2022, sections 10A.121, subdivision 1; 10A.244; 10A.25,
subdivision 3a; proposing coding for new law in Minnesota Statutes, chapter 10A.

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

Section 1.

Minnesota Statutes 2022, section 10A.121, subdivision 1, is amended to read:

Subdivision 1.

Permitted disbursements.

An independent expenditure political
committee or fund, or a ballot question political committee or fund, may:

(1) pay costs associated with its fundraising and general operations;

(2) pay for communications that do not constitute contributions or approved expenditures;

(3) make contributions to independent expenditure or ballot question political committees
or funds;

(4) make independent expenditures;

(5) make expenditures to promote or defeat ballot questions;

(6) return a contribution to its source;

(7) for a political fund, record bookkeeping entries transferring the association's general
treasury money allocated for political purposes back to the general treasury of the association;
deleted text begin and
deleted text end

(8) for a political fund, return general treasury money transferred to a separate depository
to the general depository of the association deleted text begin . deleted text end new text begin ; and
new text end

new text begin (9) make disbursements for electioneering communications.
new text end

Sec. 2.

new text begin [10A.201] ELECTIONEERING COMMUNICATIONS; DEFINITIONS.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin The terms defined in this section apply to this section and
to section 10A.202.
new text end

new text begin Subd. 2. new text end

new text begin Broadcast, cable, or satellite communication. new text end

new text begin "Broadcast, cable, or satellite
communication" means a communication that is publicly distributed by a television station,
radio station, cable television system, or satellite system.
new text end

new text begin Subd. 3. new text end

new text begin Can be received by 10,000 or more persons. new text end

new text begin (a) "Can be received by 10,000
or more persons" means:
new text end

new text begin (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;
new text end

new text begin (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;
new text end

new text begin (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;
new text end

new text begin (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;
new text end

new text begin (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;
new text end

new text begin (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:
new text end

new text begin (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
new text end

new text begin (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;
new text end

new text begin (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; or
new text end

new text begin (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.
new text end

new text begin (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 national average
household size, as determined by the Bureau of the Census.
new text end

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

new text begin (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
new text end

new text begin (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 persons or more.
new text end

new text begin Subd. 4. new text end

new text begin Direct costs of producing or airing electioneering communications. new text end

new text begin "Direct
costs of producing or airing electioneering communications" means:
new text end

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

new text begin (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.
new text end

new text begin Subd. 5. new text end

new text begin Disclosure date. new text end

new text begin "Disclosure date" means:
new text end

new text begin (1) the first date on which an electioneering communication is publicly distributed,
provided that the person making the electioneering communication has made one or more
disbursements, or has executed one or more contracts to make disbursements, for the direct
costs of producing or airing one or more electioneering communications aggregating in
excess of $10,000; or
new text end

new text begin (2) any other date during the same calendar year on which an electioneering
communication is publicly distributed, provided that the person making the electioneering
communication has made one or more disbursements, or has executed one or more contracts
to make disbursements, for the direct costs of producing or airing one or more electioneering
communications aggregating in excess of $10,000 since the most recent disclosure date
during that calendar year.
new text end

new text begin Subd. 6. new text end

new text begin Electioneering communication. new text end

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

new text begin (1) refers to a clearly identified candidate for state office;
new text end

new text begin (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 or preference 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
new text end

new text begin (3) is targeted to the relevant electorate, in the case of a candidate for senate, house of
representatives, or other office elected by district.
new text end

new text begin (b) A communication is not an electioneering communication if it:
new text end

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

new text begin (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);
new text end

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

new text begin (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
new text end

new text begin (5) is paid for by a candidate.
new text end

new text begin Subd. 7. new text end

new text begin Identification. new text end

new text begin "Identification" means, in the case of an individual, the
individual's full name, including first name, middle name or initial, if available, and last
name; mailing address; occupation; and the name of the individual's employer; and, in the
case of any other person, the person's full name and address.
new text end

new text begin Subd. 8. new text end

new text begin Persons sharing or exercising direction or control. new text end

new text begin "Persons sharing or
exercising direction or control" means officers, directors, executive directors or the
equivalent, partners, and in the case of unincorporated organizations, owners, of the entity
or person making the disbursement for the electioneering communication.
new text end

new text begin Subd. 9. new text end

new text begin Publicly distributed. new text end

new text begin "Publicly distributed" means aired, broadcast, cablecast,
or otherwise disseminated through the facilities of a television station, radio station, cable
television system, or satellite system.
new text end

new text begin Subd. 10. new text end

new text begin Refers to a clearly identified candidate. new text end

new text begin "Refers to a clearly identified
candidate" means that the candidate's name, nickname, photograph, or drawing appears, or
the identity of the candidate is otherwise apparent through an unambiguous reference such
as "the governor," "your legislator," or "the incumbent," or through an unambiguous reference
to the candidate's status as a candidate such as "the [political party] gubernatorial nominee"
or "the [political party] candidate for senate."
new text end

new text begin Subd. 11. new text end

new text begin Targeted to the relevant electorate. new text end

new text begin "Targeted to the relevant electorate"
means the communication can be received by 10,000 or more persons:
new text end

new text begin (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
new text end

new text begin (2) in the entire state, if the candidate seeks a statewide office.
new text end

Sec. 3.

new text begin [10A.202] ELECTIONEERING COMMUNICATION; REPORTING
REQUIREMENTS.
new text end

new text begin Subdivision 1. new text end

new text begin Reports required. new text end

new text begin Any person who has made an electioneering
communication, as defined in section 10A.201, aggregating in excess of $10,000 during
any calendar year shall file a statement with the board no later than 11:59 p.m. on the day
following the disclosure date. The statement shall be filed under penalty of perjury, and
must contain the information set forth in subdivision 2. Political committees that make a
communication described in section 10A.201 must report the communication as a campaign
expenditure or independent expenditure as otherwise provided by this chapter and are not
required to file a report under this section.
new text end

new text begin Subd. 2. new text end

new text begin Content of report. new text end

new text begin A statement of electioneering communications required by
this section shall disclose the following information:
new text end

new text begin (1) the identification of the person who made the disbursement or who executed a contract
to make a disbursement and, if the person is not an individual, the person's principal place
of business;
new text end

new text begin (2) the identification of any person sharing or exercising direction or control over the
activities of the person who made the disbursement or who executed a contract to make a
disbursement;
new text end

new text begin (3) the identification of the custodian of the books and accounts from which the
disbursements were made;
new text end

new text begin (4) the amount of each disbursement, or amount obligated, of more than $200 during
the period covered by the statement, the date the disbursement was made or the contract
was executed, and the identification of the person to whom that disbursement was made;
new text end

new text begin (5) all clearly identified candidates referred to in the electioneering communication and
the elections in which they are candidates;
new text end

new text begin (6) the disclosure date;
new text end

new text begin (7) if the disbursements were paid exclusively from a segregated bank account consisting
of funds provided solely by persons other than national banks, corporations organized by
federal law or the laws of this state, or foreign nationals, the name and address of each donor
who donated an amount aggregating $1,000 or more to the segregated bank account,
aggregating since the first day of the preceding calendar year;
new text end

new text begin (8) if the disbursements were not paid exclusively from a segregated bank account
consisting of funds provided solely by persons other than national banks, corporations
organized by federal law or the laws of this state, or foreign nationals, and were not made
by a corporation or labor organization, the name and address of each donor who donated
an amount aggregating $1,000 or more to the person making the disbursement, aggregating
since the first day of the preceding calendar year; and
new text end

new text begin (9) if the disbursements were made by a corporation or labor organization and were not
paid exclusively from a segregated bank account consisting of funds provided solely by
persons other than national banks, corporations organized by federal law or the laws of this
state, or foreign nationals, the name and address of each person who made a donation
aggregating $1,000 or more to the corporation or labor organization, aggregating since the
first day of the preceding calendar year, which was made for the purpose of furthering
electioneering communications.
new text end

new text begin Subd. 3. new text end

new text begin Recordkeeping. new text end

new text begin All persons who make electioneering communications or who
accept donations for the purpose of making electioneering communications must maintain
records as necessary to comply with the requirements of this section.
new text end

Sec. 4.

Minnesota Statutes 2022, section 10A.244, is amended to read:

10A.244 VOLUNTARY INACTIVE STATUS; POLITICAL FUNDS.

Subdivision 1.

Election of voluntary inactive status.

An association that has a political
fund registered under this chapter may elect to have the fund placed on voluntary inactive
status if the following conditions are met:

(1) the association makes a written request for inactive status;

(2) the association has filed all periodic reports required by this chapter and has received
no contributions into its political fund and made no expenditures or disbursements new text begin , including
disbursements for electioneering communications, new text end through its political fund since the last
date included on the association's most recent report; and

(3) the association has satisfied all obligations to the state for late filing fees and civil
penalties imposed by the board or the board has waived this requirement.

Subd. 2.

Effect of voluntary inactive status.

After an association has complied with
the requirements of subdivision 1:

(1) the board must notify the association that its political fund has been placed in
voluntary inactive status and of the terms of this section;

(2) the board must stop sending the association reports, forms, and notices of report due
dates that are periodically sent to entities registered with the board;

(3) the association is not required to file periodic disclosure reports for its political fund
as otherwise required under this chapter;

(4) the association may not accept contributions into its political fund and may not make
expenditures, contributions, or disbursements new text begin , including disbursements for electioneering
communications, new text end through its political fund; and

(5) if the association maintains a separate depository account for its political fund, it
may continue to pay bank service charges and receive interest paid on that account while
its political fund is in inactive status.

Subd. 3.

Resumption of active status or termination.

(a) An association that has placed
its political fund in voluntary inactive status may resume active status upon written notice
to the board.

(b) A political fund placed in voluntary inactive status must resume active status within
14 days of the date that it has accepted contributions or made expenditures, contributions,
or disbursements new text begin , including disbursements for electioneering communications, new text end that aggregate
more than $750 since the political fund was placed on inactive status. If, after meeting this
threshold, the association does not notify the board that its fund has resumed active status,
the board may place the association's political fund in active status and notify the association
of the change in status.

(c) An association that has placed its political fund in voluntary inactive status may
terminate the registration of the fund without returning it to active status.

Subd. 4.

Penalty for financial activity while in voluntary inactive status.

If an
association fails to notify the board of its political fund's resumption of active status under
subdivision 3, the board may impose a civil penalty of $50 per day, not to exceed $1,000
commencing on the 15th calendar day after the fund resumed active status.

Sec. 5.

Minnesota Statutes 2022, section 10A.25, subdivision 3a, is amended to read:

Subd. 3a.

Independent expenditures new text begin and electioneering communications new text end .

The principal
campaign committee of a candidate must not make independent expenditures new text begin or
disbursements for electioneering communications new text end . If the principal campaign committee of
a candidate makes a contribution to an independent expenditure committee or independent
expenditure fund on or after January 1 of the year the candidate's office will appear on the
ballot, the independent expenditure committee or independent expenditure fund must not
make an independent expenditure for that candidate.

Sec. 6. new text begin EFFECTIVE DATE.
new text end

new text begin This act is effective January 1, 2024, and applies to expenditures and electioneering
communications made on or after that date.
new text end