SF 2868

as introduced - 82nd Legislature (2001 - 2002) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act 
  1.2             relating to elections; prohibiting independent 
  1.3             expenditures by political parties as a condition of 
  1.4             receiving a public subsidy; amending Minnesota 
  1.5             Statutes 2000, sections 10A.01, subdivisions 9, 18; 
  1.6             10A.25, subdivision 1, by adding a subdivision; 
  1.7             10A.28, subdivision 1; 10A.31, subdivisions 3, 5; 
  1.8             10A.322; Minnesota Statutes 2001 Supplement, section 
  1.9             290.06, subdivision 23.  
  1.10  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.11     Section 1.  Minnesota Statutes 2000, section 10A.01, 
  1.12  subdivision 9, is amended to read: 
  1.13     Subd. 9.  [CAMPAIGN EXPENDITURE.] (a) "Campaign 
  1.14  expenditure" or "expenditure" means a purchase or payment of 
  1.15  money or anything of value, or an advance of credit, made or 
  1.16  incurred for the purpose of influencing the nomination or 
  1.17  election of a candidate or for the purpose of promoting or 
  1.18  defeating a ballot question.  
  1.19     (b) "Expenditure" includes a cost incurred to design, 
  1.20  produce, or disseminate a communication if the communication 
  1.21  contains words such as "vote for," "reelect," "(name of 
  1.22  candidate) for (office)," "vote against," "defeat," or another 
  1.23  phrase or campaign slogan that in context can have no reasonable 
  1.24  meaning other than to advocate support for or opposition to the 
  1.25  nomination or election of one or more clearly identified 
  1.26  candidates. 
  1.27     (c) "Expenditure" is presumed to include a cost incurred to 
  2.1   design, produce, or disseminate a communication if the 
  2.2   communication names or depicts one or more clearly identified 
  2.3   candidates, is disseminated during the 45 days before a primary 
  2.4   election, during the 60 days before a general election, or 
  2.5   during a special election cycle until election day, and the cost 
  2.6   exceeds the following amounts for a communication naming or 
  2.7   depicting a candidate for the following offices: 
  2.8      (1) $500 for a candidate for governor, lieutenant governor, 
  2.9   attorney general, secretary of state, or state auditor; or 
  2.10     (2) $100 for a candidate for state senator or 
  2.11  representative. 
  2.12     An individual or association presumed under this paragraph 
  2.13  to have made an expenditure may rebut the presumption by a 
  2.14  written statement signed by the spender and filed with the board 
  2.15  stating that the cost was not incurred with intent to influence 
  2.16  the nomination, election, or defeat of any candidate, supported 
  2.17  by any additional evidence the spender chooses to submit.  The 
  2.18  board may consider any additional evidence it deems relevant and 
  2.19  material and must determine by a preponderance of the evidence 
  2.20  whether the cost was incurred with intent to influence the 
  2.21  nomination, election, or defeat of a candidate. 
  2.22     (d) An expenditure is considered to be made in the year in 
  2.23  which the candidate made the purchase of goods or services or 
  2.24  incurred an obligation to pay for goods or services. 
  2.25     (e) An expenditure made for the purpose of defeating a 
  2.26  candidate is considered made for the purpose of influencing the 
  2.27  nomination or election of that candidate or any opponent of that 
  2.28  candidate. 
  2.29     (f) Except as provided in clause (1), "expenditure" 
  2.30  includes the dollar value of a donation in kind. 
  2.31     "Expenditure" does not include: 
  2.32     (1) noncampaign disbursements as defined in subdivision 26; 
  2.33     (2) services provided without compensation by an individual 
  2.34  volunteering personal time on behalf of a candidate, ballot 
  2.35  question, political committee, political fund, principal 
  2.36  campaign committee, or party unit; or 
  3.1      (3) the publishing or broadcasting of news items or 
  3.2   editorial comments by the news media, if the news medium is not 
  3.3   owned by or affiliated with any candidate or principal campaign 
  3.4   committee; or 
  3.5      (4) a cost incurred by an association for a communication 
  3.6   targeted to inform solely its own dues-paying members of the 
  3.7   association's position on a candidate. 
  3.8      Sec. 2.  Minnesota Statutes 2000, section 10A.01, 
  3.9   subdivision 18, is amended to read: 
  3.10     Subd. 18.  [INDEPENDENT EXPENDITURE.] (a) "Independent 
  3.11  expenditure" means an expenditure expressly advocating the 
  3.12  election or defeat of a clearly identified candidate, if the 
  3.13  expenditure that is made without the express or implied consent, 
  3.14  authorization, or cooperation of, and not in concert with or at 
  3.15  the request or suggestion of, any candidate or any candidate's 
  3.16  principal campaign committee or agent.  An independent 
  3.17  expenditure is not a contribution to that candidate.  An 
  3.18  expenditure by a political party or political party unit in a 
  3.19  race where the political party has a candidate on the ballot is 
  3.20  not an independent expenditure. 
  3.21     (b) An expenditure is presumed to be not independent if, 
  3.22  for example: 
  3.23     (1) in the same election cycle in which the expenditure 
  3.24  occurs, the spender or the spender's agent retains the 
  3.25  professional services of an individual or entity that, in a 
  3.26  nonministerial capacity, provides or has provided 
  3.27  campaign-related service, including polling or other campaign 
  3.28  research, media consulting or production, direct mail, or 
  3.29  fundraising, to a candidate supported by the spender for 
  3.30  nomination or election to the same office as any candidate whose 
  3.31  nomination or election the expenditure is intended to influence 
  3.32  or to a political party working in coordination with the 
  3.33  supported candidate; 
  3.34     (2) the expenditure pays for a communication that 
  3.35  disseminates, in whole or in substantial part, a broadcast or 
  3.36  written, graphic, or other form of campaign material designed, 
  4.1   produced, or distributed by the candidate, the candidate's 
  4.2   principal campaign committee, or their agents; 
  4.3      (3) the expenditure is based on information about the 
  4.4   candidate's electoral campaign plans, projects, or needs that is 
  4.5   provided by the candidate, the candidate's principal campaign 
  4.6   committee, or their agents directly or indirectly to the spender 
  4.7   or the spender's agent, with an express or tacit understanding 
  4.8   that the spender is considering making the expenditure; 
  4.9      (4) before the election, the spender or the spender's agent 
  4.10  informs a candidate or the principal campaign committee or agent 
  4.11  of a candidate for the same office as a candidate clearly 
  4.12  identified in a communication paid for by the expenditure about 
  4.13  the communication's contents; timing, location, mode, or 
  4.14  frequency of dissemination; or intended audience; or 
  4.15     (5) in the same election cycle in which the expenditure 
  4.16  occurs, the spender or the spender's agent is serving or has 
  4.17  served in an executive, policymaking, fundraising, or advisory 
  4.18  position with the candidate's campaign or has participated in 
  4.19  strategic or policymaking discussions with the candidate's 
  4.20  campaign relating to the candidate's pursuit of nomination or 
  4.21  election to office and the candidate is pursuing the same office 
  4.22  as a candidate whose nomination or election the expenditure is 
  4.23  intended to influence. 
  4.24     An individual or association presumed under this paragraph 
  4.25  to have made an expenditure that was not independent may rebut 
  4.26  the presumption by a written statement signed by the spender and 
  4.27  filed with the board stating that the expenditure was made 
  4.28  without the express or implied consent, authorization, or 
  4.29  cooperation of, and not in concert with or at the request or 
  4.30  suggestion of, any candidate or any candidate's principal 
  4.31  campaign committee or agent, supported by any additional 
  4.32  evidence the spender chooses to submit.  The board may consider 
  4.33  any additional evidence it deems relevant and material and must 
  4.34  determine by a preponderance of the evidence whether the 
  4.35  expenditure was independent.  
  4.36     (c) An expenditure by anyone other than a principal 
  5.1   campaign committee that does not qualify as an independent 
  5.2   expenditure under this subdivision is deemed to be an approved 
  5.3   expenditure under subdivision 4. 
  5.4      Sec. 3.  Minnesota Statutes 2000, section 10A.25, 
  5.5   subdivision 1, is amended to read: 
  5.6      Subdivision 1.  [LIMITS ARE VOLUNTARY.] The expenditure 
  5.7   limits imposed by this section on a candidate apply only to a 
  5.8   candidate who has signed an agreement under section 10A.322 to 
  5.9   be bound by them as a condition of receiving a public subsidy 
  5.10  for the candidate's campaign.  The prohibition imposed by this 
  5.11  section on a political party applies only to a political party 
  5.12  that has signed an agreement under section 10A.322 to be bound 
  5.13  by it as a condition of receiving a public subsidy for the 
  5.14  party's activities. 
  5.15     Sec. 4.  Minnesota Statutes 2000, section 10A.25, is 
  5.16  amended by adding a subdivision to read: 
  5.17     Subd. 14.  [INDEPENDENT EXPENDITURES BY POLITICAL PARTIES.] 
  5.18  (a) A political party or party unit must not make an independent 
  5.19  expenditure. 
  5.20     (b) A political party that has agreed not to make 
  5.21  independent expenditures as a condition of receiving a public 
  5.22  subsidy is released from the prohibition but remains eligible to 
  5.23  receive a public subsidy if a political party that has not 
  5.24  agreed to the prohibition makes an independent expenditure 
  5.25  during that election cycle. 
  5.26     (c) A political party that has not agreed to the 
  5.27  prohibition in this subdivision must file written notice with 
  5.28  the board and serve written notice on every other political 
  5.29  party within 24 hours after making an independent expenditure.  
  5.30  The notice must state only that the political party has made an 
  5.31  independent expenditure.  Upon receipt of the notice, the 
  5.32  political party that agreed to the prohibition is no longer 
  5.33  subject to the prohibition but remains eligible to receive a 
  5.34  public subsidy. 
  5.35     Sec. 5.  Minnesota Statutes 2000, section 10A.28, 
  5.36  subdivision 1, is amended to read: 
  6.1      Subdivision 1.  [EXCEEDING EXPENDITURE LIMITS.] (a) A 
  6.2   candidate subject to the expenditure limits in section 10A.25 
  6.3   who permits the candidate's principal campaign committee to make 
  6.4   expenditures or permits approved expenditures to be made on the 
  6.5   candidate's behalf in excess of the limits imposed by section 
  6.6   10A.25, as adjusted by section 10A.255, is subject to a civil 
  6.7   fine of up to four times the amount by which the expenditures 
  6.8   exceeded the limit. 
  6.9      (b) The chair of a political party or party unit subject to 
  6.10  the prohibition in section 10A.25 that makes expenditures in 
  6.11  violation of section 10A.25 is subject to a civil fine of up to 
  6.12  four times the amount of the expenditures. 
  6.13     Sec. 6.  Minnesota Statutes 2000, section 10A.31, 
  6.14  subdivision 3, is amended to read: 
  6.15     Subd. 3.  [FORM.] The commissioner of revenue must provide 
  6.16  on the first page of the income tax form and the renter and 
  6.17  homeowner property tax refund return a space for the individual 
  6.18  to indicate a wish to pay $5 ($10 if filing a joint return) from 
  6.19  the general fund of the state to finance election campaigns.  
  6.20  The form must also contain language prepared by the commissioner 
  6.21  that permits the individual to direct the state to pay the $5 
  6.22  (or $10 if filing a joint return) to:  (1) one of the major 
  6.23  political parties; (2) any minor political party that qualifies 
  6.24  under subdivision 3a; or (3) (2) all qualifying candidates as 
  6.25  provided by subdivision 7.  The renter and homeowner property 
  6.26  tax refund return must include instructions that the individual 
  6.27  filing the return may designate $5 on the return only if the 
  6.28  individual has not designated $5 on the income tax return. 
  6.29     Sec. 7.  Minnesota Statutes 2000, section 10A.31, 
  6.30  subdivision 5, is amended to read: 
  6.31     Subd. 5.  [ALLOCATION.] (a)  [GENERAL ACCOUNT.] In each 
  6.32  calendar year the money in the general account must be allocated 
  6.33  to candidates as follows: 
  6.34     (1) 21 percent for the offices of governor and lieutenant 
  6.35  governor together; 
  6.36     (2) 4.2 percent for the office of attorney general; 
  7.1      (3) 2.4 percent each for the offices of secretary of state 
  7.2   and state auditor; 
  7.3      (4) in each calendar year during the period in which state 
  7.4   senators serve a four-year term, 23-1/3 percent for the office 
  7.5   of state senator, and 46-2/3 percent for the office of state 
  7.6   representative; and 
  7.7      (5) in each calendar year during the period in which state 
  7.8   senators serve a two-year term, 35 percent each for the offices 
  7.9   of state senator and state representative. 
  7.10     (b)  [PARTY ACCOUNT.] In each calendar year the money in 
  7.11  each party account must be allocated as follows: 
  7.12     (1) 14 percent for the offices of governor and lieutenant 
  7.13  governor together; 
  7.14     (2) 2.8 percent for the office of attorney general; 
  7.15     (3) 1.6 percent each for the offices of secretary of state 
  7.16  and state auditor; 
  7.17     (4) in each calendar year during the period in which state 
  7.18  senators serve a four-year term, 23-1/3 percent for the office 
  7.19  of state senator, and 46-2/3 percent for the office of state 
  7.20  representative; 
  7.21     (5) in each calendar year during the period in which state 
  7.22  senators serve a two-year term, 35 percent each for the offices 
  7.23  of state senator and state representative; and 
  7.24     (6) ten percent for the state committee of a political 
  7.25  party that has signed and filed with the board a spending limit 
  7.26  agreement under section 10A.322. 
  7.27     Money allocated to each state committee under clause (6) 
  7.28  must be deposited in a separate account and must be spent for 
  7.29  only those items enumerated in section 10A.275.  Money allocated 
  7.30  to a state committee under clause (6) must be paid to the 
  7.31  committee by the board as it is received in the account on a 
  7.32  monthly basis, with payment on the 15th day of the calendar 
  7.33  month following the month in which the returns were processed by 
  7.34  the department of revenue, provided that these distributions 
  7.35  would be equal to 90 percent of the amount of money indicated in 
  7.36  the department of revenue's weekly unedited reports of income 
  8.1   tax returns and property tax refund returns processed in the 
  8.2   month, as notified by the department of revenue to the board.  
  8.3   The amounts paid to each state committee are subject to biennial 
  8.4   adjustment and settlement at the time of each certification 
  8.5   required of the commissioner of revenue under subdivisions 7 and 
  8.6   10.  If the total amount of payments received by a state 
  8.7   committee for the period reflected on a certification by the 
  8.8   department of revenue is different from the amount that should 
  8.9   have been received during the period according to the 
  8.10  certification, each subsequent monthly payment must be increased 
  8.11  or decreased to the fullest extent possible until the amount of 
  8.12  the overpayment is recovered or the underpayment is distributed. 
  8.13     Money not allocated to a state committee under clause (6) 
  8.14  because the state committee has not signed and filed with the 
  8.15  board a spending limit agreement under section 10A.322 must be 
  8.16  canceled to the general fund. 
  8.17     Sec. 8.  Minnesota Statutes 2000, section 10A.322, is 
  8.18  amended to read: 
  8.19     10A.322 [SPENDING LIMIT AGREEMENTS.] 
  8.20     Subdivision 1.  [AGREEMENT BY CANDIDATE.] (a) As a 
  8.21  condition of receiving a public subsidy, a candidate must sign 
  8.22  and file with the board a written agreement in which the 
  8.23  candidate agrees that the candidate will comply with sections 
  8.24  10A.25; 10A.27, subdivision 10; and 10A.324. 
  8.25     (b) Before the first day of filing for office, the board 
  8.26  must forward agreement forms to all filing officers.  The board 
  8.27  must also provide agreement forms to candidates on request at 
  8.28  any time.  The candidate must file the agreement with the board 
  8.29  by September August 1 preceding the candidate's general election 
  8.30  or a special election held at the general election.  An 
  8.31  agreement may not be filed after that date.  An agreement once 
  8.32  filed may not be rescinded. 
  8.33     (c) The board must notify the commissioner of revenue of 
  8.34  any agreement signed filed under this subdivision. 
  8.35     (d) Notwithstanding paragraph (b), if a vacancy occurs that 
  8.36  will be filled by means of a special election and the filing 
  9.1   period does not coincide with the filing period for the general 
  9.2   election, a candidate may sign and submit file a spending limit 
  9.3   agreement not later than the day after the candidate files the 
  9.4   affidavit of candidacy or nominating petition for the office. 
  9.5      Subd. 2.  [HOW LONG AGREEMENT IS EFFECTIVE.] (e) The 
  9.6   agreement, insofar as it relates to the expenditure limits in 
  9.7   section 10A.25, as adjusted by section 10A.255, and the 
  9.8   contribution limit in section 10A.27, subdivision 10, remains 
  9.9   effective for candidates until the dissolution of the principal 
  9.10  campaign committee of the candidate or the end of the first 
  9.11  election cycle completed after the agreement was filed, 
  9.12  whichever occurs first. 
  9.13     Subd. 2a.  [AGREEMENT BY POLITICAL PARTY.] (a) As a 
  9.14  condition of receiving a public subsidy, the chair of the state 
  9.15  committee of a political party must sign and file with the board 
  9.16  a written agreement in which the state committee agrees that the 
  9.17  political party and all its party units will comply with section 
  9.18  10A.25.  An agreement once filed may not be rescinded. 
  9.19     (b) The board must provide agreement forms to political 
  9.20  parties on request at any time.  The state chair must file the 
  9.21  agreement with the board by February 1 in order to be allocated 
  9.22  money credited to the party account for the preceding taxable 
  9.23  year. 
  9.24     (c) The spending limit agreement remains in effect until 
  9.25  the end of the first general election cycle completed after the 
  9.26  agreement was filed or the dissolution of the political party, 
  9.27  whichever occurs first. 
  9.28     (d) The board must notify the commissioner of revenue of 
  9.29  any agreement filed under this subdivision. 
  9.30     Subd. 4.  [REFUND RECEIPT FORMS; PENALTY.] The board must 
  9.31  make available to a political party on request and to any or 
  9.32  candidate for whom an agreement under this section is effective, 
  9.33  a supply of official refund receipt forms that state in boldface 
  9.34  type that (1) a contributor who is given a receipt form is 
  9.35  eligible to claim a refund as provided in section 290.06, 
  9.36  subdivision 23, and (2) if the contribution is to a candidate, 
 10.1   that the candidate or political party has signed an agreement to 
 10.2   limit campaign expenditures as provided in this section.  The 
 10.3   forms must provide duplicate copies of the receipt to be 
 10.4   attached to the contributor's claim.  A candidate who does not 
 10.5   sign an agreement under this section and who willfully issues an 
 10.6   official refund receipt form or a facsimile of one to any of the 
 10.7   candidate's contributors is guilty of a misdemeanor.  If the 
 10.8   state chair of a political party has not signed an agreement 
 10.9   under this section and the chair of a party unit willfully 
 10.10  issues an official refund receipt form or a facsimile of one to 
 10.11  any of the party's contributors, the chair of the party unit is 
 10.12  guilty of a misdemeanor. 
 10.13     Sec. 9.  Minnesota Statutes 2001 Supplement, section 
 10.14  290.06, subdivision 23, is amended to read: 
 10.15     Subd. 23.  [REFUND OF CONTRIBUTIONS TO POLITICAL PARTIES 
 10.16  AND CANDIDATES.] (a) A taxpayer may claim a refund equal to the 
 10.17  amount of the taxpayer's contributions made in the calendar year 
 10.18  to candidates and to a political party.  The maximum refund for 
 10.19  an individual must not exceed $50 and for a married couple, 
 10.20  filing jointly, must not exceed $100.  A refund of a 
 10.21  contribution is allowed only if the taxpayer files a form 
 10.22  required by the commissioner and attaches to the form a copy of 
 10.23  an official refund receipt form issued by the candidate or party 
 10.24  and signed by the candidate, the treasurer of the candidate's 
 10.25  principal campaign committee, or the chair or treasurer of the 
 10.26  party unit, after the contribution was received.  The receipt 
 10.27  forms must be numbered, and the data on the receipt that are not 
 10.28  public must be made available to the campaign finance and public 
 10.29  disclosure board upon its request.  A claim must be filed with 
 10.30  the commissioner no sooner than January 1 of the calendar year 
 10.31  in which the contribution was made and no later than April 15 of 
 10.32  the calendar year following the calendar year in which the 
 10.33  contribution was made.  A taxpayer may file only one claim per 
 10.34  calendar year.  Amounts paid by the commissioner after June 15 
 10.35  of the calendar year following the calendar year in which the 
 10.36  contribution was made must include interest at the rate 
 11.1   specified in section 270.76. 
 11.2      (b) No refund is allowed under this subdivision for a 
 11.3   contribution to a candidate unless the candidate: 
 11.4      (1) has signed and filed an agreement to limit campaign 
 11.5   expenditures as provided in section 10A.322; 
 11.6      (2) is seeking an office for which voluntary spending 
 11.7   limits are specified in section 10A.25; and 
 11.8      (3) has designated a principal campaign committee.  
 11.9      This subdivision does not limit the campaign expenditures 
 11.10  of a candidate who does not sign an agreement but accepts a 
 11.11  contribution for which the contributor improperly claims a 
 11.12  refund.  
 11.13     No refund is allowed under this subdivision for a 
 11.14  contribution to a political party or party unit unless the state 
 11.15  chair of the political party has signed and filed an agreement 
 11.16  to limit campaign expenditures as provided in section 10A.322. 
 11.17     (c) For purposes of this subdivision, "political party" 
 11.18  means a major political party as defined in section 200.02, 
 11.19  subdivision 7, or a minor political party qualifying for 
 11.20  inclusion on the income tax or property tax refund form under 
 11.21  section 10A.31, subdivision 3a has the meaning given it in 
 11.22  section 10A.01, subdivision 29.  
 11.23     A "major party" or "minor party" includes the aggregate of 
 11.24  that party's organization within each house of the legislature, 
 11.25  the state party organization, and the party organization within 
 11.26  congressional districts, counties, legislative districts, 
 11.27  municipalities, and precincts.  "Party unit" has the meaning 
 11.28  given it in section 10A.01, subdivision 30.  
 11.29     "Candidate" means a candidate as defined in section 10A.01, 
 11.30  subdivision 10, except a candidate for judicial office.  
 11.31     "Contribution" means a gift of money. 
 11.32     (d) The commissioner shall make copies of the form 
 11.33  available to the public and candidates upon request. 
 11.34     (e) The following data collected or maintained by the 
 11.35  commissioner under this subdivision are private:  the identities 
 11.36  of individuals claiming a refund, the identities of candidates 
 12.1   to whom those individuals have made contributions, and the 
 12.2   amount of each contribution.  
 12.3      (f) The commissioner shall report to the campaign finance 
 12.4   and public disclosure board by each August 1 a summary showing 
 12.5   the total number and aggregate amount of political contribution 
 12.6   refunds made on behalf of each candidate and each political 
 12.7   party.  These data are public. 
 12.8      (g) The amount necessary to pay claims for the refund 
 12.9   provided in this section is appropriated from the general fund 
 12.10  to the commissioner of revenue. 
 12.11     (h) For a taxpayer who files a claim for refund via the 
 12.12  Internet or other electronic means, the commissioner may accept 
 12.13  the number on the official receipt as documentation that a 
 12.14  contribution was made rather than the actual receipt as required 
 12.15  by paragraph (a). 
 12.16     Sec. 10.  [EFFECTIVE DATE.] 
 12.17     This act is effective June 1, 2002, and applies to 
 12.18  contributions received and expenditures made on and after that 
 12.19  date.