SF 496

as introduced - 88th Legislature (2013 - 2014) Posted on 05/17/2013 08:23am

A bill for an act
relating to campaign finance; making various changes to campaign finance
and public disclosure law; expanding definition of public official; amending
Minnesota Statutes 2012, sections 10A.01, subdivision 35; 10A.025, subdivision
4; 10A.04, subdivision 5; 10A.15, subdivision 1; 10A.16; 10A.20, subdivisions
4, 12; 10A.242, subdivision 1; 10A.27, subdivision 9; 10A.273, subdivisions
1, 4; 10A.30; 10A.31, subdivisions 1, 4, 7; 10A.315; 10A.321, subdivision 1;
10A.322, subdivision 4; 10A.324, subdivision 1; 211B.37.

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

ARTICLE 1

TECHNICAL CHANGES

Section 1.

Minnesota Statutes 2012, section 10A.01, subdivision 35, is amended to read:

Subd. 35.

Public official.

"Public official" means any:

(1) member of the legislature;

(2) individual employed by the legislature as secretary of the senate, legislative
auditor, chief clerk of the house of representatives, revisor of statutes, or researcher,
legislative analyst, new text begin fiscal analyst, new text end or attorney in the Office of Senate Counsel deleted text begin and deleted text end new text begin , new text end Research
deleted text begin or deleted text end new text begin , and Fiscal Analysis, new text end House Research new text begin , or the House Fiscal Analysis Department new text end ;

(3) constitutional officer in the executive branch and the officer's chief administrative
deputy;

(4) solicitor general or deputy, assistant, or special assistant attorney general;

(5) commissioner, deputy commissioner, or assistant commissioner of any state
department or agency as listed in section 15.01 or 15.06, or the state chief information
officer;

(6) member, chief administrative officer, or deputy chief administrative officer of a
state board or commission that has either the power to adopt, amend, or repeal rules under
chapter 14, or the power to adjudicate contested cases or appeals under chapter 14;

(7) individual employed in the executive branch who is authorized to adopt, amend,
or repeal rules under chapter 14 or adjudicate contested cases under chapter 14;

(8) executive director of the State Board of Investment;

(9) deputy of any official listed in clauses (7) and (8);

(10) judge of the Workers' Compensation Court of Appeals;

(11) administrative law judge or compensation judge in the State Office of
Administrative Hearings or unemployment law judge in the Department of Employment
and Economic Development;

(12) member, regional administrator, division director, general counsel, or operations
manager of the Metropolitan Council;

(13) member or chief administrator of a metropolitan agency;

(14) director of the Division of Alcohol and Gambling Enforcement in the
Department of Public Safety;

(15) member or executive director of the Higher Education Facilities Authority;

(16) member of the board of directors or president of Enterprise Minnesota, Inc.;

(17) member of the board of directors or executive director of the Minnesota State
High School League;

(18) member of the Minnesota Ballpark Authority established in section 473.755;

(19) citizen member of the Legislative-Citizen Commission on Minnesota Resources;

(20) manager of a watershed district, or member of a watershed management
organization as defined under section 103B.205, subdivision 13;

(21) supervisor of a soil and water conservation district;

(22) director of Explore Minnesota Tourism;

(23) citizen member of the Lessard-Sams Outdoor Heritage Council established
in section 97A.056;

(24) citizen member of the Clean Water Council established in section 114D.30; or

(25) member or chief executive of the Minnesota Sports Facilities Authority
established in section 473J.07.

Sec. 2.

Minnesota Statutes 2012, section 10A.025, subdivision 4, is amended to read:

Subd. 4.

Changes and corrections.

Material changes in information previously
submitted and corrections to a report or statement must be reported in writing to the board
within ten days following the date of the event prompting the change or the date upon
which the person filing became aware of the inaccuracy. The change or correction must
identify the form and the paragraph containing the information to be changed or corrected.

A person who willfully fails to report a material change or correction deleted text begin is guilty of a
gross misdemeanor and deleted text end is subject to a civil penalty imposed by the board of up to $3,000.
new text begin A willful violation of this subdivision is a gross misdemeanor.
new text end

The board must send a notice by certified mail to any individual who fails to file a
report required by this subdivision. If the individual fails to file the required report within
ten business days after the notice was sent, the board may impose a late filing fee of $5 per
day up to $100 starting on the 11th day after the notice was sent. The board must send
an additional notice by certified mail to an individual who fails to file a report within 14
days after the first notice was sent by the board that the individual may be subject to a
civil penalty for failure to file a report. An individual who fails to file a report required by
this subdivision within seven days after the second notice was sent by the board is subject
to a civil penalty imposed by the board of up to $1,000.

Sec. 3.

Minnesota Statutes 2012, section 10A.04, subdivision 5, is amended to read:

Subd. 5.

Late filing.

If a lobbyist or principal fails to file a report required by
this section deleted text begin within ten business days after deleted text end new text begin by the date new text end the report was due, the board may
impose a late filing fee of deleted text begin $5 deleted text end new text begin $25 new text end per day, not to exceed deleted text begin $100 deleted text end new text begin $1,000 new text end , commencing deleted text begin with
deleted text end the deleted text begin 11th deleted text end day after the report was due. The board must send notice by certified mail to any
lobbyist or principal who fails to file a report within ten business days after the report was
due that the lobbyist or principal may be subject to a civil penalty for failure to file the
report or pay the fee. A lobbyist or principal who fails to file a report or statement or pay a
fee within seven days after the certified mail notice was sent by the board is subject to a
civil penalty imposed by the board of up to $1,000.

Sec. 4.

Minnesota Statutes 2012, section 10A.16, is amended to read:

10A.16 EARMARKING CONTRIBUTIONS PROHIBITED.

An individual, political committee, political fund, principal campaign committee, or
party unit may not solicit or accept a contribution from any source with the express or
implied condition that the contribution or any part of it be directed to a particular candidate
other than the initial recipient. An individual, political committee, political fund, principal
campaign committee, or party unit that knowingly accepts any earmarked contribution is
deleted text begin guilty of a gross misdemeanor and deleted text end subject to a civil penalty imposed by the board of up to
$3,000. new text begin Knowingly accepting any earmarked contribution is a gross misdemeanor.
new text end

Sec. 5.

Minnesota Statutes 2012, section 10A.20, subdivision 4, is amended to read:

Subd. 4.

Period of report.

A report must cover the period from January 1 of the
reporting year to seven days before the filing date, except that the report due on January
31 must cover the period from deleted text begin the last day covered by the previous report deleted text end new text begin January 1 new text end to
December 31 new text begin of the reporting year new text end .

Sec. 6.

Minnesota Statutes 2012, section 10A.20, subdivision 12, is amended to read:

Subd. 12.

Failure to file; penalty.

If an individual fails to file a report required by
this section that is due January 31 deleted text begin within ten business days after the report was due deleted text end , the
board may impose a late filing fee of $25 per day, not to exceed $1,000, commencing
the day after the report was due.

If an individual fails to file a report required by this section that is due before a
primary or new text begin general new text end election deleted text begin within three days after the date due, regardless of whether the
individual has received any notice deleted text end , the board may impose a late filing fee of $50 per day,
not to exceed $1,000, commencing on the day after the date the statement was due.

The board must send notice by certified mail to an individual who fails to file a
report within ten business days after the report was due that the individual may be subject
to a civil penalty for failure to file the report. An individual who fails to file the report
within seven days after the certified mail notice was sent by the board is subject to a civil
penalty imposed by the board of up to $1,000.

Sec. 7.

Minnesota Statutes 2012, section 10A.273, subdivision 1, is amended to read:

Subdivision 1.

Contributions during legislative session.

(a) A candidate for the
legislature or for constitutional office, the candidate's principal campaign committee, or
a political committee or party unit established by all or a part of the party organization
within a house of the legislature, must not solicit or accept a contribution from a registered
lobbyist, political committee, political fund, deleted text begin or dissolving principal campaign committee
deleted text end new text begin an association not registered with the board new text end , or deleted text begin from deleted text end a party unit established by the party
organization within a house of the legislature, during a regular session of the legislature.

(b) A registered lobbyist, political committee, political fund, deleted text begin or dissolving principal
campaign committee deleted text end new text begin an association not registered with the board new text end , or a party unit established
by the party organization within a house of the legislature, must not make a contribution to a
candidate for the legislature or for constitutional office, the candidate's principal campaign
committee, or a political committee or party unit established by all or a part of the party
organization within a house of the legislature during a regular session of the legislature.

Sec. 8.

Minnesota Statutes 2012, section 10A.273, subdivision 4, is amended to read:

Subd. 4.

Civil penalty.

A candidate, political committee, party unit, political fund,
deleted text begin principal campaign committee deleted text end new text begin an association not registered with the board new text end , or new text begin a new text end registered
lobbyist that violates this section is subject to a civil penalty imposed by the board of up
to $1,000. If the board makes a public finding that there is probable cause to believe a
violation of this section has occurred, the board deleted text begin must deleted text end new text begin may new text end bring an action, or transmit the
finding to a county attorney who must bring an action, in the District Court of Ramsey
County, to collect a civil penalty as imposed by the board. Penalties paid under this section
must be deposited in the general fund in the state treasury.

Sec. 9.

Minnesota Statutes 2012, section 10A.30, is amended to read:

10A.30 STATE ELECTIONS CAMPAIGN deleted text begin FUND deleted text end new text begin ACCOUNT new text end .

Subdivision 1.

Establishment.

An account is established in the special revenue fund
of the state known as the "state elections campaign deleted text begin fund deleted text end new text begin account new text end ."

Subd. 2.

Separate account.

Within the state elections campaign deleted text begin fund deleted text end account there
must be maintained a separate political party account for the state committee and the
candidates of each political party and a general account.

new text begin Subd. 3. new text end

new text begin Special elections account. new text end

new text begin An account is established in the special revenue
fund of the state known as the "state special elections campaign account."
new text end

Sec. 10.

Minnesota Statutes 2012, section 10A.31, subdivision 7, is amended to read:

Subd. 7.

Distribution of general account.

(a) As soon as the board has obtained
the results of the primary election from the secretary of state, but no later than one week
after certification of the primary results by the State Canvassing Board, the board must
distribute the available money in the general account, as certified by the commissioner of
revenue deleted text begin on September 1 deleted text end new text begin one week before the state primary new text end and according to allocations set
forth in subdivision 5, in equal amounts to all candidates of a major political party whose
names are to appear on the ballot in the general election and who:

(1) have signed a spending limit agreement under section 10A.322;

(2) have filed the affidavit of contributions required by section 10A.323; and

(3) were opposed in either the primary election or the general election.

(b) The public subsidy under this subdivision may not be paid in an amount that
would cause the sum of the public subsidy paid from the party account plus the public
subsidy paid from the general account to exceed 50 percent of the expenditure limit for the
candidate or 50 percent of the expenditure limit that would have applied to the candidate if
the candidate had not been freed from expenditure limits under section 10A.25, subdivision
10. Money from the general account not paid to a candidate because of the 50 percent limit
must be distributed equally among all other qualifying candidates for the same office until
all have reached the 50 percent limit or the balance in the general account is exhausted.

deleted text begin (c) A candidate must expend or become obligated to expend at least an amount equal
to 50 percent of the money distributed by the board under this subdivision no later than the
end of the final reporting period preceding the general election. Otherwise, the candidate
must repay to the board the difference between the amount the candidate spent or became
obligated to spend by the deadline and the amount distributed to the candidate under this
subdivision. The candidate must make the repayment no later than six months following
the general election. The candidate must reimburse the board for all reasonable costs,
including litigation costs, incurred in collecting any amount due.
deleted text end

deleted text begin If the board determines that a candidate has failed to repay money as required by this
paragraph, the board may not distribute any additional money to the candidate until the
entirety of the repayment has been made.
deleted text end

Sec. 11.

Minnesota Statutes 2012, section 10A.315, is amended to read:

10A.315 SPECIAL ELECTION SUBSIDY.

(a) Each eligible candidate for a legislative office in a special election must be
paid a public subsidy equal to the sum of:

(1) the party account money at the last general election for the candidate's party
for the office the candidate is seeking; and

(2) the general account money paid to a candidate for the same office at the last
general election.

(b) A candidate who wishes to receive this public subsidy must submit a signed
agreement under section 10A.322 to the board and must meet the contribution
requirements of section 10A.323. The special election subsidy must be distributed in the
same manner as money in the party and general accounts is distributed to legislative
candidates in a general election.

(c) The amount necessary to make the payments required by this section is
appropriated from the general fund deleted text begin to the board deleted text end new text begin for transfer to the state special elections
campaign account for distribution by the board as set forth in this section new text end .

Sec. 12.

Minnesota Statutes 2012, section 10A.322, subdivision 4, is amended to read:

Subd. 4.

Refund receipt forms; penalty.

The board must make available to a
political party on request and to any candidate for whom an agreement under this section
is effective, a supply of official refund receipt forms that state in boldface type that new text begin :
new text end

(1) a contributor who is given a receipt form is eligible to claim a refund as provided
in section 290.06, subdivision 23 deleted text begin , deleted text end new text begin ; new text end and

(2) if the contribution is to a candidate, that the candidate has signed an agreement to
limit campaign expenditures as provided in this section.

The forms must provide duplicate copies of the receipt to be attached to the contributor's
claim. deleted text begin A candidate who does not sign an agreement under this section and who willfully
issues deleted text end new text begin The willful issuance of new text end an official refund receipt form or a facsimile of one to any
of the candidate's contributors new text begin by a candidate or treasurer of a candidate who did not sign
an agreement under this section new text end is deleted text begin guilty of deleted text end a misdemeanor.

ARTICLE 2

CONFORMING CHANGES

Section 1.

Minnesota Statutes 2012, section 10A.15, subdivision 1, is amended to read:

Subdivision 1.

Anonymous contributions.

A political committee, political fund,
principal campaign committee, or party unit may not retain an anonymous contribution
in excess of $20, but must forward it to the board for deposit in the general account of
the state elections campaign deleted text begin fund deleted text end new text begin account new text end .

Sec. 2.

Minnesota Statutes 2012, section 10A.242, subdivision 1, is amended to read:

Subdivision 1.

Dissolution required.

A political committee, political fund, or
principal campaign committee must be dissolved within 60 days after receiving notice
from the board that the committee or fund has become inactive. The assets of the
committee or fund must be spent for the purposes authorized by section 211B.12 and other
applicable law or liquidated and deposited in the general account of the state elections
campaign deleted text begin fund deleted text end new text begin account new text end within 60 days after the board notifies the committee or fund
that it has become inactive.

Sec. 3.

Minnesota Statutes 2012, section 10A.27, subdivision 9, is amended to read:

Subd. 9.

Contributions to and from other candidates.

(a) A candidate or the
treasurer of a candidate's principal campaign committee must not accept a contribution
from another candidate's principal campaign committee or from any other committee
bearing the contributing candidate's name or title or otherwise authorized by the
contributing candidate, unless the contributing candidate's principal campaign committee
is being dissolved. A candidate's principal campaign committee must not make a
contribution to another candidate's principal campaign committee, except when the
contributing committee is being dissolved.

(b) A principal campaign committee that makes a contribution to another principal
campaign committee must provide with the contribution a written statement of the
committee's intent to dissolve and terminate its registration within 12 months after the
contribution was made. If the committee fails to dissolve and terminate its registration by
that time, the board may levy a civil penalty up to four times the size of the contribution
against the contributing committee. A contribution from a terminating principal campaign
committee that is not accepted by another principal campaign committee must be forwarded
to the board for deposit in the general account of the state elections campaign deleted text begin fund deleted text end new text begin account new text end .

(c) A candidate's principal campaign committee must not accept a contribution from,
or make a contribution to, a committee associated with a person who seeks nomination
or election to the office of president, senator, or representative in Congress of the United
States.

(d) A candidate or the treasurer of a candidate's principal campaign committee must
not accept a contribution from a candidate for political subdivision office in any state,
unless the contribution is from the personal funds of the candidate for political subdivision
office. A candidate or the treasurer of a candidate's principal campaign committee must
not make a contribution from the principal campaign committee to a candidate for political
subdivision office in any state.

Sec. 4.

Minnesota Statutes 2012, section 10A.31, subdivision 1, is amended to read:

Subdivision 1.

Designation.

An individual resident of this state who files an income
tax return or a renter and homeowner property tax refund return with the commissioner of
revenue may designate on their original return that $5 be paid from the general fund of
the state into the state elections campaign deleted text begin fund deleted text end new text begin account new text end . If a husband and wife file a joint
return, each spouse may designate that $5 be paid. No individual is allowed to designate
$5 more than once in any year. The taxpayer may designate that the amount be paid into
the account of a political party or into the general account.

Sec. 5.

Minnesota Statutes 2012, section 10A.31, subdivision 4, is amended to read:

Subd. 4.

Appropriation.

(a) The amounts designated by individuals for the state
elections campaign deleted text begin fund deleted text end new text begin account new text end , less three percent, are appropriated from the general
fund, must be transferred and credited to the appropriate account in the state elections
campaign deleted text begin fund deleted text end new text begin account new text end , and are annually appropriated for distribution as set forth in
subdivisions 5, 5a, 6, and 7. The remaining three percent must be kept in the general fund
for administrative costs.

(b) In addition to the amounts in paragraph (a), $1,020,000 for each general election
is appropriated from the general fund for transfer to the general account of the state
elections campaign deleted text begin fund deleted text end new text begin account new text end .

Sec. 6.

Minnesota Statutes 2012, section 10A.321, subdivision 1, is amended to read:

Subdivision 1.

Calculation and certification of estimates.

The commissioner of
revenue must calculate and certify to the board one week before the first day for filing for
office in each election year an estimate of the total amount in the state general account
of the state elections campaign deleted text begin fund deleted text end new text begin account new text end and the amount of money each candidate
who qualifies, as provided in section 10A.31, subdivisions 6 and 7, may receive from the
candidate's party account in the state elections campaign deleted text begin fund deleted text end new text begin account new text end . This estimate must
be based upon the allocations and formulas in section 10A.31, subdivisions 5 and 5a, any
necessary vote totals provided by the secretary of state to apply the formulas in section
10A.31, subdivisions 5 and 5a, and the amount of money expected to be available after
100 percent of the tax returns have been processed.

Sec. 7.

Minnesota Statutes 2012, section 10A.324, subdivision 1, is amended to read:

Subdivision 1.

When return required.

A candidate must return all or a portion
of the public subsidy received from the state elections campaign deleted text begin fund deleted text end new text begin account new text end or the
public subsidy received under section 10A.315, under the circumstances in this section or
section 10A.257, subdivision 1.

To the extent that the amount of public subsidy received exceeds the aggregate of:
(1) actual expenditures made by the principal campaign committee of the candidate; and
(2) approved expenditures made on behalf of the candidate, the treasurer of the candidate's
principal campaign committee must return an amount equal to the difference to the board.
The cost of postage that was not used during an election cycle and payments that created
credit balances at vendors at the close of an election cycle are not considered expenditures
for purposes of determining the amount to be returned. Expenditures in excess of the
candidate's spending limit do not count in determining aggregate expenditures under
this paragraph.

Sec. 8.

Minnesota Statutes 2012, section 211B.37, is amended to read:

211B.37 COSTS ASSESSED.

Except as otherwise provided in section 211B.36, subdivision 3, the chief
administrative law judge shall assess the cost of considering complaints filed under section
211B.32 as provided in this section. Costs of complaints relating to a statewide ballot
question or an election for a statewide or legislative office must be assessed against the
appropriation from the general fund to the general account of the state elections campaign
deleted text begin fund deleted text end new text begin account new text end in section 10A.31, subdivision 4. Costs of complaints relating to any other
ballot question or elective office must be assessed against the county or counties in
which the election is held. Where the election is held in more than one county, the chief
administrative law judge shall apportion the assessment among the counties in proportion
to their respective populations within the election district to which the complaint relates
according to the most recent decennial federal census.