SF 3071

1st Engrossment - 80th Legislature (1997 - 1998) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act 
  1.2             relating to campaign finance; requiring conduit funds 
  1.3             to register with the board of campaign finance and 
  1.4             public disclosure, to have a treasurer, and to not 
  1.5             commingle funds; requiring reports; authorizing 
  1.6             nonprofit corporations to use individual membership 
  1.7             dues for political contributions; amending Minnesota 
  1.8             Statutes 1996, sections 10A.01, by adding a 
  1.9             subdivision; 10A.14, subdivisions 1 and 2; 10A.20, 
  1.10            subdivisions 1, 3, and by adding a subdivision; 
  1.11            10A.265; and 211B.15, subdivision 16; Minnesota 
  1.12            Statutes 1997 Supplement, section 10A.20, subdivision 
  1.13            2; proposing coding for new law in Minnesota Statutes, 
  1.14            chapter 10A. 
  1.15  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.16     Section 1.  Minnesota Statutes 1996, section 10A.01, is 
  1.17  amended by adding a subdivision to read: 
  1.18     Subd. 30.  [CONDUIT FUND.] "Conduit fund" means any 
  1.19  accumulation of voluntary contributions by an association other 
  1.20  than a political committee that is collected and transferred to 
  1.21  influence the nomination or election of a candidate and that is 
  1.22  transferred to a candidate or political committee only as 
  1.23  directed by the individual contributors to the fund. 
  1.24     Sec. 2.  [10A.125] [CONDUIT FUNDS.] 
  1.25     An association that has a conduit fund shall elect or 
  1.26  appoint a treasurer of the conduit fund.  A conduit fund may not 
  1.27  accept a contribution for transfer or make a transfer while the 
  1.28  office of treasurer is vacant.  The contents of a conduit fund 
  1.29  may not be commingled with any other funds or with the personal 
  1.30  funds of any officer or member of the fund.  A person who 
  2.1   knowingly violates this section is guilty of a misdemeanor. 
  2.2      Sec. 3.  Minnesota Statutes 1996, section 10A.14, 
  2.3   subdivision 1, is amended to read: 
  2.4      Subdivision 1.  The treasurer of a political committee or, 
  2.5   political fund, or conduit fund shall register with the board by 
  2.6   filing a statement of organization no later than 14 days after 
  2.7   the date upon which the committee or fund has made a 
  2.8   contribution, received contributions or made expenditures in 
  2.9   excess of $100.  
  2.10     Sec. 4.  Minnesota Statutes 1996, section 10A.14, 
  2.11  subdivision 2, is amended to read: 
  2.12     Subd. 2.  The statement of organization shall include: 
  2.13     (a) the name and address of the political committee or, 
  2.14  political fund, or conduit fund; 
  2.15     (b) the name and address of any supporting association of a 
  2.16  political fund or conduit fund; 
  2.17     (c) the name and address of the chair, the treasurer, and 
  2.18  any deputy treasurers; 
  2.19     (d) a listing of all depositories or safety deposit boxes 
  2.20  used; 
  2.21     (e) a statement as to whether the committee is a principal 
  2.22  campaign committee as authorized by section 10A.19, subdivision 
  2.23  1; and 
  2.24     (f) for political parties only, a list of categories of 
  2.25  substate units as defined in section 10A.27, subdivision 4. 
  2.26     Sec. 5.  Minnesota Statutes 1996, section 10A.20, 
  2.27  subdivision 1, is amended to read: 
  2.28     Subdivision 1.  The treasurer of every political committee 
  2.29  and, political fund, and conduit fund shall begin to file the 
  2.30  reports required by this section in the first year it receives 
  2.31  contributions or transfers or makes expenditures or transfers in 
  2.32  excess of $100 and shall continue to file until the committee or 
  2.33  fund is terminated. 
  2.34     Sec. 6.  Minnesota Statutes 1997 Supplement, section 
  2.35  10A.20, subdivision 2, is amended to read: 
  2.36     Subd. 2.  [TIME FOR FILING.] The reports shall be filed 
  3.1   with the board on or before January 31 of each year and 
  3.2   additional reports shall be filed as required and in accordance 
  3.3   with clauses (a) and (b).  
  3.4      (a) In each year in which the name of the candidate is on 
  3.5   the ballot, the report of the principal campaign committee shall 
  3.6   be filed 15 days before a primary and ten days before a general 
  3.7   election, seven days before a special primary and a special 
  3.8   election, and ten days after a special election cycle.  The 
  3.9   report due after a special election may be filed on January 31 
  3.10  following the special election if the special election is held 
  3.11  not more than 60 days before that date.  
  3.12     (b) In each general election year political committees and 
  3.13  political funds other than principal campaign committees, 
  3.14  political funds, and conduit funds shall file reports ten 15 
  3.15  days before a primary and ten days before a general election.  
  3.16     If a scheduled filing date falls on a Saturday, Sunday or 
  3.17  legal holiday, the filing date shall be the next regular 
  3.18  business day. 
  3.19     Sec. 7.  Minnesota Statutes 1996, section 10A.20, 
  3.20  subdivision 3, is amended to read: 
  3.21     Subd. 3.  [CONTENTS OF REPORT; POLITICAL COMMITTEES AND 
  3.22  POLITICAL FUNDS.] Each report by a political committee or 
  3.23  political fund under this section shall disclose: 
  3.24     (a) The amount of liquid assets on hand at the beginning of 
  3.25  the reporting period; 
  3.26     (b) The name, address and employer, or occupation if 
  3.27  self-employed, of each individual, political committee or 
  3.28  political fund who within the year has made one or more 
  3.29  transfers or donations in kind to the political committee or 
  3.30  political fund, including the purchase of tickets for all fund 
  3.31  raising efforts, which in aggregate exceed $100 for legislative 
  3.32  or statewide candidates or ballot questions, together with the 
  3.33  amount and date of each transfer or donation in kind, and the 
  3.34  aggregate amount of transfers and donations in kind within the 
  3.35  year from each source so disclosed.  A donation in kind shall be 
  3.36  disclosed at its fair market value.  An approved expenditure is 
  4.1   listed as a donation in kind.  A donation in kind is considered 
  4.2   consumed in the reporting period in which it is received.  The 
  4.3   names of contributors shall be listed in alphabetical order; 
  4.4      (c) The sum of contributions to the political committee or 
  4.5   political fund during the reporting period; 
  4.6      (d) Each loan made or received by the political committee 
  4.7   or political fund within the year in aggregate in excess of 
  4.8   $100, continuously reported until repaid or forgiven, together 
  4.9   with the name, address, occupation and the principal place of 
  4.10  business, if any, of the lender and any endorser and the date 
  4.11  and amount of the loan.  If any loan made to the principal 
  4.12  campaign committee of a candidate is forgiven at any time or 
  4.13  repaid by any entity other than that principal campaign 
  4.14  committee, it shall be reported as a contribution for the year 
  4.15  in which the loan was made; 
  4.16     (e) Each receipt in excess of $100 not otherwise listed 
  4.17  under clauses (b) to (d); 
  4.18     (f) The sum of all receipts of the political committee or 
  4.19  political fund during the reporting period; 
  4.20     (g) The name and address of each individual or association 
  4.21  to whom aggregate expenditures, including approved expenditures, 
  4.22  have been made by or on behalf of the political committee or 
  4.23  political fund within the year in excess of $100, together with 
  4.24  the amount, date and purpose of each expenditure and the name 
  4.25  and address of, and office sought by, each candidate on whose 
  4.26  behalf the expenditure was made, identification of the ballot 
  4.27  question which the expenditure is intended to promote or defeat, 
  4.28  and in the case of independent expenditures made in opposition 
  4.29  to a candidate, the name, address and office sought for each 
  4.30  such candidate; 
  4.31     (h) The sum of all expenditures made by or on behalf of the 
  4.32  political committee or political fund during the reporting 
  4.33  period; 
  4.34     (i) The amount and nature of any advance of credit incurred 
  4.35  by the political committee or political fund, continuously 
  4.36  reported until paid or forgiven.  If any advance of credit 
  5.1   incurred by the principal campaign committee of a candidate is 
  5.2   forgiven at any time by the creditor or paid by any entity other 
  5.3   than that principal campaign committee, it shall be reported as 
  5.4   a donation in kind for the year in which the advance of credit 
  5.5   was incurred; 
  5.6      (j) The name and address of each political committee, 
  5.7   political fund, or principal campaign committee to which 
  5.8   aggregate transfers in excess of $100 have been made within the 
  5.9   year, together with the amount and date of each transfer; 
  5.10     (k) The sum of all transfers made by the political 
  5.11  committee, political fund, or principal campaign committee 
  5.12  during the reporting period; 
  5.13     (l) Except for contributions to a candidate or committee 
  5.14  for a candidate for office in a municipality as defined in 
  5.15  section 471.345, subdivision 1, the name and address of each 
  5.16  individual or association to whom aggregate noncampaign 
  5.17  disbursements in excess of $100 have been made within the year 
  5.18  by or on behalf of a principal campaign committee, political 
  5.19  committee, or political fund, together with the amount, date, 
  5.20  and purpose of each noncampaign disbursement; 
  5.21     (m) The sum of all noncampaign disbursements made within 
  5.22  the year by or on behalf of a principal campaign committee, 
  5.23  political committee, or political fund; 
  5.24     (n) The name and address of a nonprofit corporation that 
  5.25  provides administrative assistance to a political committee or 
  5.26  political fund as authorized by section 211B.15, subdivision 17, 
  5.27  together with the type of administrative assistance provided and 
  5.28  the aggregate fair market value of each type of assistance 
  5.29  provided to the political committee or political fund during the 
  5.30  reporting period; and 
  5.31     (o) A report filed under subdivision 2, clause (b), by a 
  5.32  political committee or political fund that is subject to 
  5.33  subdivision 14, must contain the information required by 
  5.34  subdivision 14, if the political committee or political fund has 
  5.35  solicited and caused others to make aggregate contributions 
  5.36  greater than $5,000 between January 1 of the general election 
  6.1   year and the end of the reporting period.  This disclosure 
  6.2   requirement is in addition to the report required by subdivision 
  6.3   14. 
  6.4      Sec. 8.  Minnesota Statutes 1996, section 10A.20, is 
  6.5   amended by adding a subdivision to read: 
  6.6      Subd. 3b.  [CONTENTS OF REPORT; CONDUIT FUNDS.] (a) Each 
  6.7   report by a conduit fund under this section must disclose the 
  6.8   name of each candidate or political party unit to whom aggregate 
  6.9   transfers in excess of $1,000 have been made within the year and 
  6.10  the amount and date of each transfer.  The report must also 
  6.11  disclose the sum of all transfers made to candidates and 
  6.12  political party units.  
  6.13     (b) The report of each principal campaign committee and 
  6.14  political party unit under subdivision 3 must disclose the 
  6.15  amount of transfers received through each conduit fund within 
  6.16  the year in aggregate in excess of $1,000 and the name and 
  6.17  registration number of the conduit fund.  The report must also 
  6.18  disclose the sum of all transfers received through conduit funds.
  6.19     Sec. 9.  Minnesota Statutes 1996, section 10A.265, is 
  6.20  amended to read: 
  6.21     10A.265 [FREEDOM TO ASSOCIATE AND COMMUNICATE.] 
  6.22     Subdivision 1.  [COMMUNICATION WITH MEMBERS.] Nothing in 
  6.23  this chapter shall be construed as abridging the right of an 
  6.24  association to communicate with its members. 
  6.25     Subd. 2.  [USE OF DUES FOR POLITICAL PURPOSES.] It is not a 
  6.26  violation of this chapter or section 211B.15 for a nonprofit 
  6.27  membership association to deduct up to $25 annually from the 
  6.28  dues of an individual who is a member of the association for the 
  6.29  purpose of contributing the amount so deducted to a political 
  6.30  committee or political fund sponsored by the association and 
  6.31  registered with the campaign finance and public disclosure board 
  6.32  under section 10A.14.  An association making a deduction allowed 
  6.33  by this subdivision shall annually inform the association's 
  6.34  members on the dues statement of the amount and purpose of the 
  6.35  deductions. 
  6.36     Sec. 10.  Minnesota Statutes 1996, section 211B.15, 
  7.1   subdivision 16, is amended to read: 
  7.2      Subd. 16.  [EMPLOYEE POLITICAL FUND SOLICITATION.] Any 
  7.3   solicitation of political contributions by an employee must be 
  7.4   in writing, informational and nonpartisan in nature, and not 
  7.5   promotional for any particular candidate or group of 
  7.6   candidates.  The solicitation must consist only of a general 
  7.7   request on behalf of an independent political committee (a 
  7.8   conduit fund), as defined in section 10A.01, subdivision 30, and 
  7.9   must state that there is no minimum contribution, that a 
  7.10  contribution or lack thereof will in no way impact the 
  7.11  employee's employment, that the employee must direct the 
  7.12  contribution to candidates of the employee's choice, and that 
  7.13  any response by the employee shall remain confidential and shall 
  7.14  not be directed to the employee's supervisors or managers.  
  7.15  Questions from an employee regarding a solicitation may be 
  7.16  answered orally or in writing consistent with the above 
  7.17  requirements.  Nothing in this subdivision authorizes a 
  7.18  corporate donation of an employee's time prohibited under 
  7.19  subdivision 2.  
  7.20     Sec. 11.  [EFFECTIVE DATE.] 
  7.21     This act is effective July 1, 1998.