SF 708

as introduced - 80th Legislature (1997 - 1998) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act 
  1.2             relating to campaign finance; clarifying definitions; 
  1.3             strengthening enforcement powers; facilitating reports 
  1.4             of last-minute contributions; clarifying campaign 
  1.5             finance requirements; requiring return of public 
  1.6             subsidies under certain conditions; providing civil 
  1.7             penalties; amending Minnesota Statutes 1996, sections 
  1.8             10A.01, subdivisions 7 and 10b; 10A.03, subdivision 3; 
  1.9             10A.04, subdivisions 5 and 7; 10A.065, subdivision 1, 
  1.10            and by adding a subdivision; 10A.08; 10A.09, 
  1.11            subdivision 7; 10A.14, subdivision 4; 10A.15, 
  1.12            subdivisions 3, 3a, 5, and by adding subdivisions; 
  1.13            10A.20, subdivisions 3, 5, 12, and by adding a 
  1.14            subdivision; 10A.23; 10A.25, subdivision 10, and by 
  1.15            adding a subdivision; 10A.27, subdivision 12; 10A.275, 
  1.16            subdivision 1; 10A.28, subdivision 1; 10A.31, 
  1.17            subdivisions 7 and 10; 10A.315; 10A.322, subdivisions 
  1.18            1 and 4; 10A.324, subdivision 1; 10A.34; 211A.02, 
  1.19            subdivision 2; 211A.12; 211B.04; and 211B.06, 
  1.20            subdivision 1; repealing Minnesota Statutes 1996, 
  1.21            sections 10A.09, subdivision 3; and 10A.21, 
  1.22            subdivisions 1 and 2. 
  1.23  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.24     Section 1.  Minnesota Statutes 1996, section 10A.01, 
  1.25  subdivision 7, is amended to read: 
  1.26     Subd. 7.  [CONTRIBUTION.] "Contribution" means a transfer 
  1.27  of funds or a donation in kind. 
  1.28     "Contribution" includes any loan or advance of credit to a 
  1.29  political committee, political fund, or principal campaign 
  1.30  committee, which loan or advance of credit is (a) forgiven, or 
  1.31  (b) paid by an individual or an association other than the 
  1.32  political committee, political fund, or principal campaign 
  1.33  committee to which the loan or advance of credit is made.  If an 
  1.34  advance of credit or a loan is forgiven or paid as provided in 
  2.1   this subdivision, it is a contribution in the year in which the 
  2.2   loan or advance of credit is made. 
  2.3      A contribution made for the purpose of defeating a 
  2.4   candidate is considered made for the purpose of influencing the 
  2.5   nomination or election of that candidate or any opponent of that 
  2.6   candidate. 
  2.7      "Contribution" does not include services provided without 
  2.8   compensation by an individual volunteering personal time on 
  2.9   behalf of a candidate, ballot question, political committee, or 
  2.10  political fund, or. 
  2.11     "Contribution" does not include the uncompensated use by an 
  2.12  individual volunteering personal time on behalf of a candidate, 
  2.13  ballot question, political committee, or political fund, of the 
  2.14  volunteer's own personal property or private residence. 
  2.15     "Contribution" does not include the publishing or 
  2.16  broadcasting of news items or editorial comments by the news 
  2.17  media. 
  2.18     Sec. 2.  Minnesota Statutes 1996, section 10A.01, 
  2.19  subdivision 10b, is amended to read: 
  2.20     Subd. 10b.  [INDEPENDENT EXPENDITURE.] "Independent 
  2.21  expenditure" means an expenditure expressly advocating the 
  2.22  election or defeat of a clearly identified candidate, which 
  2.23  expenditure is made without the express or implied consent, 
  2.24  authorization, or cooperation of, and not in concert with or at 
  2.25  the request or suggestion of, any candidate or any candidate's 
  2.26  principal campaign committee or agent.  An independent 
  2.27  expenditure is not a contribution to that candidate.  An 
  2.28  expenditure by a political party or political party unit, as 
  2.29  defined in section 10A.275, subdivision 3, in a race where the 
  2.30  political party has a candidate on the ballot, during an 
  2.31  election cycle when the political party or party unit receives a 
  2.32  public subsidy from the state election campaign fund or 
  2.33  participates in the political contribution refund program, is 
  2.34  not an independent expenditure. 
  2.35     Sec. 3.  Minnesota Statutes 1996, section 10A.03, 
  2.36  subdivision 3, is amended to read: 
  3.1      Subd. 3.  The board shall notify by certified mail or 
  3.2   personal service any lobbyist who fails to file a registration 
  3.3   form within five days after becoming a lobbyist.  If a lobbyist 
  3.4   fails to file a form within seven ten days after receiving this 
  3.5   the notice was mailed, the board may impose a late filing fee 
  3.6   at $5 $25 per day, not to exceed $100 $500, commencing with 
  3.7   the eighth 11th day after receiving the notice was 
  3.8   mailed.  The board shall further notify by certified mail or 
  3.9   personal service any lobbyist who fails to file a form within 21 
  3.10  days of receiving a first notice that the lobbyist may be 
  3.11  subject to a criminal penalty for failure to file the form.  A 
  3.12  lobbyist who knowingly fails to file a form within seven days 
  3.13  after receiving a second notice from the board is guilty of a 
  3.14  misdemeanor. 
  3.15     Sec. 4.  Minnesota Statutes 1996, section 10A.04, 
  3.16  subdivision 5, is amended to read: 
  3.17     Subd. 5.  The board shall notify by certified mail or 
  3.18  personal service any lobbyist or principal who fails after seven 
  3.19  days after a filing date imposed by this section to file a 
  3.20  report or statement required by this section.  If a lobbyist or 
  3.21  principal fails to file a report within seven ten days after 
  3.22  receiving this the notice was mailed, the board may impose a 
  3.23  late filing fee of $5 $25 per day, not to exceed $100 $500, 
  3.24  commencing with the eighth 11th day after receiving the notice 
  3.25  was mailed.  The board shall further notify by certified mail or 
  3.26  personal service any lobbyist who fails to file a report within 
  3.27  21 days after receiving a first notice that the lobbyist may be 
  3.28  subject to a criminal penalty for failure to file the report.  A 
  3.29  lobbyist who knowingly fails to file such a report or statement 
  3.30  within seven days after receiving a second notice from the board 
  3.31  is guilty of a misdemeanor. 
  3.32     Sec. 5.  Minnesota Statutes 1996, section 10A.04, 
  3.33  subdivision 7, is amended to read: 
  3.34     Subd. 7.  [FINANCIAL RECORDS.] The board may randomly audit 
  3.35  the financial records of lobbyists and principals required to 
  3.36  report under this section.  Lobbyists and principals shall 
  4.1   retain for four years after the report was filed all records 
  4.2   concerning the matters reported under this chapter, including 
  4.3   vouchers, canceled checks, bills, invoices, worksheets, and 
  4.4   receipts.  
  4.5      Sec. 6.  Minnesota Statutes 1996, section 10A.065, 
  4.6   subdivision 1, is amended to read: 
  4.7      Subdivision 1.  [REGISTERED LOBBYIST CONTRIBUTIONS; 
  4.8   LEGISLATIVE SESSION.] A candidate for the legislature or for 
  4.9   constitutional office, a candidate's principal campaign 
  4.10  committee, any other political committee with the candidate's 
  4.11  name or title, any committee authorized by the candidate, or a 
  4.12  political committee established by all or a part of the party 
  4.13  organization within a house of the legislature, shall not 
  4.14  solicit or accept a contribution on behalf of a candidate's 
  4.15  principal campaign committee, any other political committee with 
  4.16  the candidate's name or title, any committee authorized by the 
  4.17  candidate, or a political committee established by all or a part 
  4.18  of the party organization within a house of the legislature, 
  4.19  from a registered lobbyist, political committee, or political 
  4.20  fund during a regular session of the legislature.  However, the 
  4.21  party organization within a house of the legislature may receive 
  4.22  a member's dues during a regular session of the legislature, 
  4.23  even if the dues are paid from the assets of the member's 
  4.24  principal campaign committee.  For a candidate for governor or 
  4.25  lieutenant governor, the prohibition in this subdivision extends 
  4.26  to the 14 days immediately following adjournment of the 
  4.27  legislature in either year of a biennium.  
  4.28     Sec. 7.  Minnesota Statutes 1996, section 10A.065, is 
  4.29  amended by adding a subdivision to read: 
  4.30     Subd. 6.  [FEDERAL OFFICES.] This section does not prohibit 
  4.31  a candidate from soliciting or accepting a contribution to a 
  4.32  campaign for a federal office.  
  4.33     Sec. 8.  Minnesota Statutes 1996, section 10A.08, is 
  4.34  amended to read: 
  4.35     10A.08 [REPRESENTATION DISCLOSURE.] 
  4.36     Any public official who represents a client for a fee 
  5.1   before any individual, board, commission or agency that has rule 
  5.2   making authority in a hearing conducted under chapter 14, shall 
  5.3   disclose the official's participation in the action to the board 
  5.4   within 14 days after the appearance.  The board shall notify by 
  5.5   certified mail or personal service any public official who fails 
  5.6   to disclose the participation within 14 days after the 
  5.7   appearance.  If the public official fails to disclose the 
  5.8   participation within seven ten days of after this notice was 
  5.9   mailed, the board may impose a late filing fee of $5 $25 per 
  5.10  day, not to exceed $100 $500, commencing on the eighth 11th day 
  5.11  after receiving the notice was mailed. 
  5.12     Sec. 9.  Minnesota Statutes 1996, section 10A.09, 
  5.13  subdivision 7, is amended to read: 
  5.14     Subd. 7.  The board shall notify by certified mail or 
  5.15  personal service any individual who fails within the prescribed 
  5.16  time to file a statement of economic interest required by this 
  5.17  section.  If an individual fails to file a statement within 
  5.18  seven ten days after receiving this the notice was mailed, the 
  5.19  board may impose a late filing fee of $5 $25 per day, not to 
  5.20  exceed $100 $500, commencing on the eighth 11th day after 
  5.21  receiving the notice was mailed.  The board shall further notify 
  5.22  by certified mail or personal service any individual who fails 
  5.23  to file a statement within 21 days after receiving a first 
  5.24  notice that the individual may be subject to a criminal penalty 
  5.25  for failure to file a statement.  An individual who fails to 
  5.26  file a statement within seven days after a second notice is 
  5.27  guilty of a misdemeanor. 
  5.28     Sec. 10.  Minnesota Statutes 1996, section 10A.14, 
  5.29  subdivision 4, is amended to read: 
  5.30     Subd. 4.  The board shall notify by certified mail or 
  5.31  personal service any individual who fails to file a statement 
  5.32  required by this section.  If an individual fails to file a 
  5.33  statement within seven ten days after receiving a the notice 
  5.34  was mailed, the board may impose a late filing fee of $5 $25 per 
  5.35  day, not to exceed $100 $500, commencing with the eighth 11th 
  5.36  day after receiving the notice was mailed.  The board shall 
  6.1   further notify by certified mail or personal service any 
  6.2   individual who fails to file a statement within 21 days after 
  6.3   receiving a first notice that such individual may be subject to 
  6.4   a criminal penalty for failure to file the report.  An 
  6.5   individual who knowingly fails to file the statement within 
  6.6   seven days after receiving a second notice from the board is 
  6.7   guilty of a misdemeanor. 
  6.8      Sec. 11.  Minnesota Statutes 1996, section 10A.15, 
  6.9   subdivision 3, is amended to read: 
  6.10     Subd. 3.  All transfers received by or on behalf of any 
  6.11  candidate, political committee or political fund shall be 
  6.12  deposited in an account designated "Campaign Fund of ..... (name 
  6.13  of candidate, committee or fund)."  All transfers shall be 
  6.14  deposited promptly upon within 30 days after receipt and, except 
  6.15  for transfers received during the last three days of any 
  6.16  reporting period as described in section 10A.20, shall be 
  6.17  deposited during the reporting period in which they were 
  6.18  received.  Any transfer received during the last three days of a 
  6.19  reporting period shall be deposited within 72 hours of receipt 
  6.20  and shall be reported as received during the reporting period 
  6.21  whether or not deposited within that period.  Any deposited 
  6.22  transfer may be returned to the contributor within 60 days of 
  6.23  deposit.  A transfer deposited and not returned within 60 days 
  6.24  of that deposit shall be deemed for the purposes of this 
  6.25  chapter, to be accepted by the candidate, political committee or 
  6.26  political fund. 
  6.27     Sec. 12.  Minnesota Statutes 1996, section 10A.15, 
  6.28  subdivision 3a, is amended to read: 
  6.29     Subd. 3a.  No treasurer of a principal campaign committee 
  6.30  of a candidate or of a political committee or political fund 
  6.31  shall deposit any transfer which on its face exceeds the limit 
  6.32  on contributions to that candidate or political committee or 
  6.33  political fund prescribed by section 10A.27 unless, at the time 
  6.34  of deposit, the treasurer issues a check to the source for the 
  6.35  amount of the excess. 
  6.36     Sec. 13.  Minnesota Statutes 1996, section 10A.15, 
  7.1   subdivision 5, is amended to read: 
  7.2      Subd. 5.  [LOBBYIST, POLITICAL COMMITTEE, OR POLITICAL FUND 
  7.3   REGISTRATION NUMBER ON CHECKS.] A contribution made to a 
  7.4   candidate by a lobbyist, political committee, or political fund 
  7.5   that makes a contribution to a candidate must show on the 
  7.6   contribution the name of the lobbyist, political committee, or 
  7.7   political fund and the number under which it is registered with 
  7.8   the board.  A candidate may rely upon the presence or absence of 
  7.9   a registration number in determining whether the contribution is 
  7.10  from a lobbyist and is not subject to a civil penalty for the 
  7.11  failure of a contributor to comply with this subdivision.  The 
  7.12  contributor is subject to a civil penalty imposed by the board.  
  7.13     Sec. 14.  Minnesota Statutes 1996, section 10A.15, is 
  7.14  amended by adding a subdivision to read: 
  7.15     Subd. 6.  [CONTRIBUTIONS NOT DISCLOSING OCCUPATION.] A 
  7.16  political committee or political fund may not deposit a 
  7.17  contribution that exceeds $100 without recording the name, 
  7.18  address, and employer, or occupation if self-employed, of the 
  7.19  contributor.  If not deposited within 30 days after it was 
  7.20  received, the contribution must be returned to the contributor. 
  7.21     Sec. 15.  Minnesota Statutes 1996, section 10A.15, is 
  7.22  amended by adding a subdivision to read: 
  7.23     Subd. 7.  [CONTRIBUTION FROM A MARRIED COUPLE.] A 
  7.24  contribution given by a married person may be considered to be a 
  7.25  contribution by the married couple in equal shares if the 
  7.26  contributor notifies the recipient of the contributor's intent 
  7.27  at the time the contribution is given.  If the amount of the 
  7.28  contribution is larger than the amount that may be accepted from 
  7.29  an individual, the notice must be in writing. 
  7.30     Sec. 16.  Minnesota Statutes 1996, section 10A.20, 
  7.31  subdivision 3, is amended to read: 
  7.32     Subd. 3.  [CONTENTS OF REPORT.] Each report under this 
  7.33  section shall disclose: 
  7.34     (a) The amount of liquid assets on hand at the beginning of 
  7.35  the reporting period; 
  7.36     (b) The name, address and employer, or occupation if 
  8.1   self-employed, of each individual, political committee or 
  8.2   political fund who within the year has made one or more 
  8.3   transfers or donations in kind to the political committee or 
  8.4   political fund, including the purchase of tickets for all fund 
  8.5   raising efforts, which in aggregate exceed $100 for legislative 
  8.6   or statewide candidates or ballot questions, together with the 
  8.7   amount and date of each transfer or donation in kind, and the 
  8.8   aggregate amount of transfers and donations in kind within the 
  8.9   year from each source so disclosed.  A donation in kind shall be 
  8.10  disclosed at its fair market value.  An approved expenditure is 
  8.11  listed as a donation in kind.  A donation in kind is considered 
  8.12  consumed in the reporting period in which it is received.  The 
  8.13  names of contributors shall be listed in alphabetical order; 
  8.14     (c) The sum of contributions to the political committee or 
  8.15  political fund during the reporting period; 
  8.16     (d) Each loan made or received by the political committee 
  8.17  or political fund within the year in aggregate in excess of 
  8.18  $100, continuously reported until repaid or forgiven, together 
  8.19  with the name, address, occupation and the principal place of 
  8.20  business, if any, of the lender and any endorser and the date 
  8.21  and amount of the loan.  If any loan made to the principal 
  8.22  campaign committee of a candidate is forgiven at any time or 
  8.23  repaid by any entity other than that principal campaign 
  8.24  committee, it shall be reported as a contribution for the year 
  8.25  in which the loan was made; 
  8.26     (e) Each receipt in excess of $100 not otherwise listed 
  8.27  under clauses (b) to (d); 
  8.28     (f) The sum of all receipts of the political committee or 
  8.29  political fund during the reporting period; 
  8.30     (g) The name and address of each individual or association 
  8.31  to whom aggregate expenditures, including approved expenditures, 
  8.32  have been made by or on behalf of the political committee or 
  8.33  political fund within the year in excess of $100, together with 
  8.34  the amount, date and purpose of each expenditure and the name 
  8.35  and address of, and office sought by, each candidate on whose 
  8.36  behalf the expenditure was made, identification of the ballot 
  9.1   question which the expenditure is intended to promote or defeat, 
  9.2   and in the case of independent expenditures or multicandidate 
  9.3   expenditures made in support of or opposition to a candidate, 
  9.4   the name, address and office sought for each such candidate; 
  9.5      (h) The sum of all expenditures made by or on behalf of the 
  9.6   political committee or political fund during the reporting 
  9.7   period; 
  9.8      (i) The amount and nature of any advance of credit incurred 
  9.9   by the political committee or political fund, continuously 
  9.10  reported until paid or forgiven.  If any advance of credit 
  9.11  incurred by the principal campaign committee of a candidate is 
  9.12  forgiven at any time by the creditor or paid by any entity other 
  9.13  than that principal campaign committee, it shall be reported as 
  9.14  a donation in kind for the year in which the advance of credit 
  9.15  was incurred; 
  9.16     (j) The name and address of each political committee, 
  9.17  political fund, or principal campaign committee to which 
  9.18  aggregate transfers in excess of $100 have been made within the 
  9.19  year, together with the amount and date of each transfer; 
  9.20     (k) The sum of all transfers made by the political 
  9.21  committee, political fund, or principal campaign committee 
  9.22  during the reporting period; 
  9.23     (l) Except for contributions to a candidate or committee 
  9.24  for a candidate for office in a municipality as defined in 
  9.25  section 471.345, subdivision 1, the name and address of each 
  9.26  individual or association to whom aggregate noncampaign 
  9.27  disbursements in excess of $100 have been made within the year 
  9.28  by or on behalf of a principal campaign committee, political 
  9.29  committee, or political fund, together with the amount, date, 
  9.30  and purpose of each noncampaign disbursement; 
  9.31     (m) The sum of all noncampaign disbursements made within 
  9.32  the year by or on behalf of a principal campaign committee, 
  9.33  political committee, or political fund; 
  9.34     (n) The name and address of a nonprofit corporation that 
  9.35  provides administrative assistance to a political committee or 
  9.36  political fund as authorized by section 211B.15, subdivision 17, 
 10.1   together with the type of administrative assistance provided and 
 10.2   the aggregate fair market value of each type of assistance 
 10.3   provided to the political committee or political fund during the 
 10.4   reporting period; and 
 10.5      (o) A report filed under subdivision 2, clause (b), by a 
 10.6   political committee or political fund that is subject to 
 10.7   subdivision 14, must contain the information required by 
 10.8   subdivision 14, if the political committee or political fund has 
 10.9   solicited and caused others to make aggregate contributions 
 10.10  greater than $5,000 between January 1 of the general election 
 10.11  year and the end of the reporting period.  This disclosure 
 10.12  requirement is in addition to the report required by subdivision 
 10.13  14. 
 10.14     Sec. 17.  Minnesota Statutes 1996, section 10A.20, 
 10.15  subdivision 5, is amended to read: 
 10.16     Subd. 5.  [PREELECTION REPORTS.] In any statewide election 
 10.17  any loan, contribution, or contributions from any one source 
 10.18  totaling $2,000 or more, or in any legislative election totaling 
 10.19  more than $400, received between the last day covered in the 
 10.20  last report prior to an election and the election shall be 
 10.21  reported to the board in one of the following ways: 
 10.22     (1) in person within 48 hours after its receipt; 
 10.23     (2) by telegram or mailgram within 48 hours after its 
 10.24  receipt; or 
 10.25     (3) by certified first-class mail sent within 48 hours 
 10.26  after its receipt; 
 10.27     (4) by facsimile transmission received by the board within 
 10.28  48 hours after the contribution was received; or 
 10.29     (5) by any other method of electronic transmission approved 
 10.30  by the board and received by the board within 48 hours after the 
 10.31  contribution was received. 
 10.32     These loans and contributions must also be reported in the 
 10.33  next required report. 
 10.34     The 48-hour notice requirement does not apply with respect 
 10.35  to a primary if the statewide or legislative candidate is 
 10.36  unopposed in that primary. 
 11.1      Sec. 18.  Minnesota Statutes 1996, section 10A.20, 
 11.2   subdivision 12, is amended to read: 
 11.3      Subd. 12.  The board shall notify by certified mail or 
 11.4   personal service any individual who fails to file a statement 
 11.5   required by this section.  If an individual fails to file a 
 11.6   statement due January 31 within seven ten days after receiving a 
 11.7   notice was mailed, the board may impose a late filing fee 
 11.8   of $5 $25 per day, not to exceed $100 $500, commencing on 
 11.9   the eighth 11th day after receiving notice was mailed.  If an 
 11.10  individual fails to file a statement due before any primary or 
 11.11  election within three days of the date due, regardless of 
 11.12  whether the individual has received any notice, the board may 
 11.13  impose a late filing fee of $50 $100 per day, not to 
 11.14  exceed $500 $1,000, commencing on the fourth day after the date 
 11.15  the statement was due.  The board shall further notify by 
 11.16  certified mail or personal service any individual who fails to 
 11.17  file any statement within 14 days after receiving a first notice 
 11.18  from the board that the individual may be subject to a criminal 
 11.19  penalty for failure to file a statement.  An individual who 
 11.20  knowingly fails to file the statement within seven days after 
 11.21  receiving a second notice from the board is guilty of a 
 11.22  misdemeanor.  The late filing fee may be paid out of the assets 
 11.23  of the political committee or fund.  
 11.24     Sec. 19.  Minnesota Statutes 1996, section 10A.20, is 
 11.25  amended by adding a subdivision to read: 
 11.26     Subd. 15.  [EQUITABLE RELIEF.] A candidate whose opponent 
 11.27  does not timely file the report due ten days before the general 
 11.28  election may petition the district court for immediate equitable 
 11.29  relief to enforce the filing requirement.  
 11.30     Sec. 20.  Minnesota Statutes 1996, section 10A.23, is 
 11.31  amended to read: 
 11.32     10A.23 [CHANGES AND CORRECTIONS.] 
 11.33     Subdivision 1.  [REPORT.] Any material changes in 
 11.34  information previously submitted and any corrections to a report 
 11.35  or statement shall be reported in writing to the board within 
 11.36  ten days following the date of the event prompting the change or 
 12.1   the date upon which the person filing became aware of the 
 12.2   inaccuracy.  The change or correction shall identify the form 
 12.3   and the paragraph containing the information to be changed or 
 12.4   corrected.  If the board determines that a report or statement 
 12.5   is inaccurate or incomplete, the board shall notify by certified 
 12.6   mail the person who filed the report or statement of the need to 
 12.7   correct it. 
 12.8      Subd. 2.  [PENALTY.] If the person fails to file a 
 12.9   corrected report or statement within ten days after:  (1) the 
 12.10  event prompting the change; (2) the date upon which the person 
 12.11  filing became aware of the inaccuracy; or (3) the date the 
 12.12  notice was mailed, the board may impose a late filing fee at the 
 12.13  rate of $25 a day, not to exceed $500, commencing with the 11th 
 12.14  day. 
 12.15     Any person who willfully fails to report a material change 
 12.16  or correction is guilty of a gross misdemeanor. 
 12.17     Sec. 21.  Minnesota Statutes 1996, section 10A.25, 
 12.18  subdivision 10, is amended to read: 
 12.19     Subd. 10.  [EFFECT OF OPPONENT'S CONDUCT.] (a) A candidate 
 12.20  who has agreed to be bound by the expenditure limits imposed by 
 12.21  this section as a condition of receiving a public subsidy for 
 12.22  the candidate's campaign is may choose to be released from the 
 12.23  expenditure limits but remains remain eligible to receive a 
 12.24  public subsidy if the candidate has an opponent who does has not 
 12.25  agree agreed to be bound by the limits and receives has received 
 12.26  contributions or makes made or becomes become obligated to make 
 12.27  expenditures during that election cycle in excess of the 
 12.28  following limits: 
 12.29     (1) up to ten days before the primary election, receipts or 
 12.30  expenditures equal to 20 percent of the expenditure limit for 
 12.31  that office as set forth in subdivision 2; or 
 12.32     (2) after ten days before the primary election, cumulative 
 12.33  receipts or expenditures during that election cycle equal to 50 
 12.34  percent of the expenditure limit for that office as set forth in 
 12.35  subdivision 2. 
 12.36     Before the primary election, a candidate's "opponents" are 
 13.1   only those who will appear on the ballot of the same party in 
 13.2   the primary election. 
 13.3      (b) A candidate who has not agreed to be bound by 
 13.4   expenditure limits, or the candidate's principal campaign 
 13.5   committee, shall file written notice with the board and provide 
 13.6   written notice to any opponent of the candidate for the same 
 13.7   office within 24 hours of exceeding the limits in paragraph (a), 
 13.8   clause (2).  The notice must state only that the candidate or 
 13.9   candidate's principal campaign committee has received 
 13.10  contributions or made or become obligated to make campaign 
 13.11  expenditures in excess of the limits in paragraph (a), clause 
 13.12  (2).  
 13.13     (c) Upon receipt of the notice the, a candidate who has 
 13.14  agreed to be bound by the limits is may file with the board a 
 13.15  notice that the candidate chooses to be no longer bound by the 
 13.16  expenditure limits.  A notice of a candidate's choice not to be 
 13.17  bound by the expenditure limits that is based on the conduct of 
 13.18  an opponent in the state primary election may not be filed more 
 13.19  than one day after the state canvassing board has declared the 
 13.20  results of the state primary. 
 13.21     (d) A candidate who has agreed to be bound by the 
 13.22  expenditure limits imposed by this section and whose opponent in 
 13.23  the general election has chosen, as provided in paragraph (c), 
 13.24  not to be bound by the expenditure limits because of the conduct 
 13.25  of an opponent in the primary election is no longer bound by the 
 13.26  limits but remains eligible to receive a public subsidy. 
 13.27     Sec. 22.  Minnesota Statutes 1996, section 10A.25, is 
 13.28  amended by adding a subdivision to read: 
 13.29     Subd. 14.  [INDEPENDENT EXPENDITURES BY PRINCIPAL CAMPAIGN 
 13.30  COMMITTEES.] The principal campaign committee of a candidate may 
 13.31  not make independent expenditures in support of or in opposition 
 13.32  to another candidate. 
 13.33     Sec. 23.  Minnesota Statutes 1996, section 10A.27, 
 13.34  subdivision 12, is amended to read: 
 13.35     Subd. 12.  [CONTRIBUTIONS TO OTHER POLITICAL COMMITTEES OR 
 13.36  FUNDS.] The treasurer of a political committee or political fund 
 14.1   that makes contributions to candidates, other than a candidate's 
 14.2   principal campaign committee or a political party unit as 
 14.3   defined in section 10A.275, shall not permit the political 
 14.4   committee or political fund to accept aggregate contributions 
 14.5   from an individual, political committee, or political fund in an 
 14.6   amount more than $100 $1,000 a year. 
 14.7      Sec. 24.  Minnesota Statutes 1996, section 10A.275, 
 14.8   subdivision 1, is amended to read: 
 14.9      Subdivision 1.  [EXCEPTIONS.] Notwithstanding any other 
 14.10  provisions of this chapter, the following expenditures by a 
 14.11  state political party, a party unit, or two or more party units 
 14.12  acting together, with at least one party unit being either:  the 
 14.13  state party organization or the party organization within a 
 14.14  congressional district, county, or legislative district, shall 
 14.15  not be considered contributions to or expenditures on behalf of 
 14.16  any candidate for the purposes of section 10A.25 or 10A.27, and 
 14.17  shall not be allocated to any candidates pursuant to section 
 14.18  10A.22, subdivision 5: 
 14.19     (a) expenditures on behalf of candidates of that party 
 14.20  generally without referring to any of them specifically in any 
 14.21  advertisement published, posted or broadcast; 
 14.22     (b) expenditures for the preparation, display, mailing or 
 14.23  other distribution of an official party sample ballot listing 
 14.24  the names of three or more individuals whose names are to appear 
 14.25  on the ballot; 
 14.26     (c) expenditures for any telephone conversation including 
 14.27  the names of three or more individuals whose names are to appear 
 14.28  on the ballot; 
 14.29     (d) expenditures for any political party fundraising effort 
 14.30  on behalf of three or more candidates; or 
 14.31     (e) expenditures for party committee staff member services 
 14.32  that benefit three or more candidates.  
 14.33     Public subsidy money received from the state and required 
 14.34  to be used for multicandidate political expenditures must be 
 14.35  kept in a separate account and may not be used on behalf of 
 14.36  candidates who are subject to chapter 10A that have not filed a 
 15.1   spending limit agreement under section 10A.322.  
 15.2      Sec. 25.  Minnesota Statutes 1996, section 10A.28, 
 15.3   subdivision 1, is amended to read: 
 15.4      Subdivision 1.  [CANDIDATE EXCEEDING EXPENDITURE LIMITS.] A 
 15.5   candidate subject to the expenditure limits in section 10A.25 
 15.6   who permits the candidate's principal campaign committee to make 
 15.7   expenditures or permits approved expenditures to be made on the 
 15.8   candidate's behalf in excess of the limits imposed by section 
 15.9   10A.25, as adjusted by section 10A.255, may be ordered by the 
 15.10  board to return part or all of the public subsidy paid to the 
 15.11  candidate and is subject to a civil fine up to four times the 
 15.12  amount which the expenditures exceeded the limit. 
 15.13     Sec. 26.  Minnesota Statutes 1996, section 10A.31, 
 15.14  subdivision 7, is amended to read: 
 15.15     Subd. 7.  (a) Within two weeks after certification by the 
 15.16  state canvassing board of the results of the general election, 
 15.17  the board shall distribute the available funds in the general 
 15.18  account, as certified by the commissioner of revenue on November 
 15.19  1 and according to allocations set forth in subdivision 5, in 
 15.20  equal amounts to all candidates for each statewide office who 
 15.21  received at least five percent of the votes cast in the general 
 15.22  election for that office, and to all candidates for legislative 
 15.23  office who received at least ten percent of the votes cast in 
 15.24  the general election for the specific office for which they were 
 15.25  candidates, provided that the public subsidy under this 
 15.26  subdivision may not be paid in an amount that would cause the 
 15.27  sum of the public subsidy paid from the party account plus the 
 15.28  public subsidy paid from the general account and the public 
 15.29  subsidy paid to match independent expenditures to exceed 50 
 15.30  percent of the expenditure limit for the candidate.  If a 
 15.31  candidate is entitled to receive an opponent's share of the 
 15.32  general account public subsidy under section 10A.25, subdivision 
 15.33  10, the opponent's share must be excluded in calculating the 50 
 15.34  percent limit.  Money from the general account not paid to a 
 15.35  candidate because of the 50 percent limit must be distributed 
 15.36  equally among all other qualifying candidates for the same 
 16.1   office until all have reached the 50 percent limit or the 
 16.2   balance in the general account is exhausted.  The board shall 
 16.3   not use the information contained in the report of the principal 
 16.4   campaign committee of any candidate due ten days before the 
 16.5   general election for the purpose of reducing the amount due that 
 16.6   candidate from the general account. 
 16.7      (b) If a candidate has not yet filed a campaign finance 
 16.8   report required by section 10A.20, subdivision 2, or the 
 16.9   candidate owes money to the board, the board shall not pay a 
 16.10  public subsidy to the candidate until the report has been filed 
 16.11  or the debt has been paid, whichever applies.  
 16.12     Sec. 27.  Minnesota Statutes 1996, section 10A.31, 
 16.13  subdivision 10, is amended to read: 
 16.14     Subd. 10.  [DISTRIBUTION.] In the event that on the date of 
 16.15  either certification by the commissioner of revenue as provided 
 16.16  in subdivisions 6 and 7, less than 98 percent of the tax returns 
 16.17  have been processed, the commissioner of revenue shall certify 
 16.18  to the board by December 1 the amount accumulated in each 
 16.19  account since the previous certification.  By December 15, the 
 16.20  board shall distribute to each candidate according to the 
 16.21  allocations as provided in subdivision 5 the amounts to which 
 16.22  the candidates are entitled in the form of checks made "payable 
 16.23  to the campaign fund of ......(name of candidate)......."  A 
 16.24  check may include as an additional payee a financial institution 
 16.25  named by the candidate in a notice filed with the board at least 
 16.26  ten days before the payment was due to be made.  Any money 
 16.27  accumulated after the final certification shall be maintained in 
 16.28  the respective accounts for distribution in the next general 
 16.29  election year. 
 16.30     Sec. 28.  Minnesota Statutes 1996, section 10A.315, is 
 16.31  amended to read: 
 16.32     10A.315 [SPECIAL ELECTION SUBSIDY.] 
 16.33     (a) Each eligible candidate for a legislative office in a 
 16.34  special election must be paid a public subsidy equal to the sum 
 16.35  of: 
 16.36     (1) the party account money at the last general election 
 17.1   for the candidate's party for the office the candidate is 
 17.2   seeking; and 
 17.3      (2) the general account money paid to candidates for the 
 17.4   same office at the last general election.  
 17.5      (b) If the filing period for the special election coincides 
 17.6   with the filing period for the general election, the candidate 
 17.7   must meet the matching requirements of section 10A.323 and the 
 17.8   special election subsidy must be distributed in the same manner 
 17.9   as money is distributed to legislative candidates in a general 
 17.10  election. 
 17.11     (c) If the filing period for the special election does not 
 17.12  coincide with the filing period for the general election, the 
 17.13  procedures in this paragraph apply.  A candidate who wishes to 
 17.14  receive this public subsidy must submit a signed agreement under 
 17.15  section 10A.322 to the board not later than the day after the 
 17.16  candidate files the affidavit of candidacy or nominating 
 17.17  petition for the office.  The candidate must meet the matching 
 17.18  requirements of section 10A.323, except that the candidate may 
 17.19  count contributions received during the two months immediately 
 17.20  preceding the special election, other than contributions the 
 17.21  candidate has previously included on an affidavit of match for 
 17.22  another election, and the amount of match required is 
 17.23  one-quarter of the amount stated in section 10A.323.  The 
 17.24  special election subsidy must be distributed in the same manner 
 17.25  as money in the party and general accounts is distributed to 
 17.26  legislative candidates in a general election. 
 17.27     (d) The amount necessary to make the payments required by 
 17.28  this subdivision is appropriated from the general fund to the 
 17.29  state treasurer board. 
 17.30     Sec. 29.  Minnesota Statutes 1996, section 10A.322, 
 17.31  subdivision 1, is amended to read: 
 17.32     Subdivision 1.  [AGREEMENT BY CANDIDATE.] (a) As a 
 17.33  condition of receiving a public subsidy, a candidate shall sign 
 17.34  and file with the board a written agreement in which the 
 17.35  candidate agrees that the candidate will comply with sections 
 17.36  10A.25 and 10A.324. 
 18.1      (b) Before the first day of filing for office, the board 
 18.2   shall forward agreement forms to all filing officers.  The board 
 18.3   shall also provide agreement forms to candidates on request at 
 18.4   any time.  The candidate may sign an agreement and submit it to 
 18.5   the filing officer on the day of filing an affidavit of 
 18.6   candidacy or petition to appear on the ballot, in which case the 
 18.7   filing officer shall without delay forward signed agreements to 
 18.8   the board.  Alternatively, the candidate may submit the 
 18.9   agreement directly to the board at any time before September 1 
 18.10  preceding the general election.  An agreement may not be filed 
 18.11  after that date.  An agreement once filed may not be rescinded. 
 18.12     (c) The board shall forward a copy of any agreement signed 
 18.13  under this subdivision to the commissioner of revenue.  
 18.14     (d) Notwithstanding any provisions of this section, when a 
 18.15  vacancy occurs that will be filled by means of a special 
 18.16  election and the filing period does not coincide with the filing 
 18.17  period for the general election, a candidate may sign and submit 
 18.18  a spending limit agreement at any time before the deadline for 
 18.19  submission of a signed agreement under section 10A.315. 
 18.20     (e) A candidate who fills a vacancy in nomination that 
 18.21  occurs after the deadline in paragraph (b) may file a spending 
 18.22  limit agreement no later than the day after the candidate fills 
 18.23  the vacancy.  
 18.24     Sec. 30.  Minnesota Statutes 1996, section 10A.322, 
 18.25  subdivision 4, is amended to read: 
 18.26     Subd. 4.  [REFUND RECEIPT FORMS; PENALTY.] The board shall 
 18.27  make available to a political party on request, other than a 
 18.28  political party unit organized at the municipal or precinct 
 18.29  level, and to any candidate for whom an agreement under this 
 18.30  section is effective, a supply of official refund receipt forms 
 18.31  that state in boldface type that (1) a contributor who is given 
 18.32  a receipt form is eligible to claim a refund as provided in 
 18.33  section 290.06, subdivision 23, and (2) if the contribution is 
 18.34  to a candidate, that the candidate has signed an agreement to 
 18.35  limit campaign expenditures as provided in this section.  The 
 18.36  forms must provide duplicate copies of the receipt to be 
 19.1   attached to the contributor's claim.  A candidate who does not 
 19.2   sign an agreement under this section and who willfully issues an 
 19.3   official refund receipt form or a facsimile of one to any of the 
 19.4   candidate's contributors is guilty of a misdemeanor. 
 19.5      Sec. 31.  Minnesota Statutes 1996, section 10A.324, 
 19.6   subdivision 1, is amended to read: 
 19.7      Subdivision 1.  [WHEN RETURN REQUIRED.] A candidate shall 
 19.8   return all or a portion of the public subsidy received from the 
 19.9   state elections campaign fund or the public matching subsidy 
 19.10  received under section 10A.315, under the circumstances in this 
 19.11  section or section 10A.25, subdivision 11. 
 19.12     (a) To the extent that the amount of public subsidy 
 19.13  received by the candidate exceeds the expenditure limits for the 
 19.14  office held or sought, as provided in section 10A.25 and as 
 19.15  adjusted by section 10A.255, the treasurer of the candidate's 
 19.16  principal campaign committee shall return the excess to the 
 19.17  board. 
 19.18     (b) To the extent that the amount of public subsidy 
 19.19  received exceeds the aggregate of:  (1) actual expenditures made 
 19.20  by the principal campaign committee of the candidate; and (2) 
 19.21  approved expenditures made on behalf of the candidate, the 
 19.22  treasurer of the candidate's principal campaign committee shall 
 19.23  return an amount equal to the difference to the board. 
 19.24     (c) If the board determines that a candidate has filed an 
 19.25  affidavit of matching contributions under section 10A.323 that 
 19.26  is not supported by the campaign finance reports filed by the 
 19.27  candidate under section 10A.20, the board shall notify the 
 19.28  treasurer of the candidate's principal campaign committee, 
 19.29  withhold any public subsidy not yet paid to the candidate, and 
 19.30  demand return of any public subsidy paid to the candidate for 
 19.31  that election cycle.  The treasurer shall return the entire 
 19.32  public subsidy to the board.  
 19.33     Sec. 32.  Minnesota Statutes 1996, section 10A.34, is 
 19.34  amended to read: 
 19.35     10A.34 [REMEDIES.] 
 19.36     Subdivision 1.  [PERSONAL LIABILITY.] A person charged with 
 20.1   a duty under sections 10A.02 to 10A.34 shall be this chapter is 
 20.2   personally liable for the penalty for failing to discharge it. 
 20.3      Subd. 1a.  [RECOVERY OF MONEY.] The board may bring an 
 20.4   action in the district court in Ramsey county to recover any 
 20.5   late filing fee or civil penalty imposed or public subsidy paid 
 20.6   pursuant to any provision of this chapter.  All money recovered 
 20.7   shall be deposited in the general fund of the state. 
 20.8      Subd. 2.  [INJUNCTION.] The board or a county attorney may 
 20.9   seek an injunction in the district court to enforce the 
 20.10  provisions of sections 10A.02 to 10A.34 this chapter. 
 20.11     Subd. 3.  [CIVIL PENALTY.] Unless otherwise provided, a 
 20.12  violation of sections 10A.02 to 10A.34 this chapter is not a 
 20.13  crime, but is subject to a civil penalty imposed by the board in 
 20.14  an amount up to $1,000. 
 20.15     Subd. 4.  [AWARD OF COSTS.] If the board prevails in an 
 20.16  action to enforce this chapter, the board may request and the 
 20.17  court may award to the board its costs, disbursements, 
 20.18  reasonable attorney fees, and witness fees.  
 20.19     Subd. 5.  [PENALTY FOR FALSE COMPLAINTS.] A person who 
 20.20  knowingly makes a false or bad faith complaint or report of an 
 20.21  alleged violation of this chapter is subject to a civil penalty 
 20.22  imposed by the board of up to $1,000.  
 20.23     Sec. 33.  Minnesota Statutes 1996, section 211A.02, 
 20.24  subdivision 2, is amended to read: 
 20.25     Subd. 2.  [INFORMATION REQUIRED.] The report to be filed by 
 20.26  a candidate or committee must include:  
 20.27     (1) the name of the candidate or ballot question; 
 20.28     (2) the name and address of the person responsible for 
 20.29  filing the report; 
 20.30     (3) the total amount of receipts and expenditures for the 
 20.31  period from the last previous report to five days before the 
 20.32  current report is due; 
 20.33     (4) the purpose for each expenditure; and 
 20.34     (5) the name of any individual or committee that during the 
 20.35  year has made one or more contributions that in the aggregate 
 20.36  are equal to or greater more than $500 $100.  
 21.1      Sec. 34.  Minnesota Statutes 1996, section 211A.12, is 
 21.2   amended to read: 
 21.3      211A.12 [CONTRIBUTION LIMITS.] 
 21.4      A candidate or a candidate's committee may not accept 
 21.5   aggregate contributions made or delivered by an individual or 
 21.6   committee in excess of $300 in an election year for the office 
 21.7   sought and $100 in other years; except that a candidate or a 
 21.8   candidate's committee for an office whose territory has a 
 21.9   population over 100,000 may not accept aggregate contributions 
 21.10  made or delivered by an individual or committee in excess of 
 21.11  $500 in an election year for the office sought and $100 in other 
 21.12  years.  
 21.13     The following deliveries are not subject to the bundling 
 21.14  limitation in this section:  
 21.15     (1) delivery of contributions collected by a member of the 
 21.16  candidate's committee, such as a block worker or a volunteer who 
 21.17  hosts a fundraising event, to the committee's treasurer; and 
 21.18     (2) a delivery made by an individual on behalf of the 
 21.19  individual's spouse. 
 21.20     Notwithstanding sections 211A.02, subdivision 3, and 
 21.21  410.21, this section supersedes any home rule charter.  
 21.22     Sec. 35.  Minnesota Statutes 1996, section 211B.04, is 
 21.23  amended to read: 
 21.24     211B.04 [CAMPAIGN LITERATURE MUST INCLUDE DISCLAIMER.] 
 21.25     (a) A person who participates in the preparation or 
 21.26  dissemination of campaign material other than as provided in 
 21.27  section 211B.05, subdivision 1, that does not prominently 
 21.28  include the name and address of the person or committee causing 
 21.29  the material to be prepared or disseminated in a disclaimer 
 21.30  substantially in the form provided in paragraph (b) or (c) is 
 21.31  guilty of a misdemeanor.  
 21.32     (b) Except in cases covered by paragraph (c), the required 
 21.33  form of disclaimer is:  "Prepared and paid for by the .......... 
 21.34  committee, .........(address)" for material prepared and paid 
 21.35  for by a principal campaign committee, or "Prepared and paid for 
 21.36  by the .......... committee, .........(address), in support of 
 22.1   .........(insert name of candidate or ballot question)" for 
 22.2   material prepared and paid for by a person or committee other 
 22.3   than a principal campaign committee. 
 22.4      (c) In the case of broadcast media, the required form of 
 22.5   disclaimer is:  "Paid for by the ............ committee." 
 22.6      (d) Campaign material that is not circulated on behalf of a 
 22.7   particular candidate or ballot question must also include in the 
 22.8   disclaimer either that it is "in opposition to .....(insert name 
 22.9   of candidate or ballot question.....)"; or that "this 
 22.10  publication is not circulated on behalf of any candidate or 
 22.11  ballot question." 
 22.12     (e) This section does not apply to objects stating only the 
 22.13  candidate's name and the office sought, fundraising tickets, or 
 22.14  personal letters that are clearly being sent by the candidate, 
 22.15  except as otherwise provided in paragraph (g).  This section 
 22.16  does not apply to an individual acting independently of any 
 22.17  candidate, political committee, or political fund who spends 
 22.18  less than $300 and only from the individual's own resources for 
 22.19  campaign material more than 14 days before the election to which 
 22.20  the campaign material relates. 
 22.21     (f) This section does not modify or repeal section 211B.06. 
 22.22     (g) Notwithstanding contrary provisions in this section, if 
 22.23  two or more candidates have a surname with the same spelling and 
 22.24  simultaneously seek election to one or more offices that would 
 22.25  result in their appearing on the same ballot, each candidate's 
 22.26  campaign material must include the disclaimer required by this 
 22.27  section and must fully identify the candidate so as to 
 22.28  distinguish the candidate from any other candidate with the same 
 22.29  surname on the same ballot.  In addition to the disclaimer, the 
 22.30  material must include the candidate's surname and one of the 
 22.31  following:  the candidate's first name, first name and middle 
 22.32  initial, or initials only.  The material may also include the 
 22.33  candidate's occupation and address.  
 22.34     (h) It is a defense to a prosecution for failure to include 
 22.35  a disclaimer required by this section for the defendant to prove 
 22.36  by a preponderance of the evidence that the defendant reasonably 
 23.1   and in good faith believed that compliance with the disclaimer 
 23.2   requirement could expose the defendant to threats of, or actual, 
 23.3   reprisal, loss of employment, or physical coercion.  
 23.4      Sec. 36.  Minnesota Statutes 1996, section 211B.06, 
 23.5   subdivision 1, is amended to read: 
 23.6      Subdivision 1.  [GROSS MISDEMEANOR.] A person is guilty of 
 23.7   a gross misdemeanor who intentionally participates in the 
 23.8   preparation, dissemination, or broadcast of paid political 
 23.9   advertising or campaign material with respect to the personal or 
 23.10  political character or acts of a candidate, whether or not 
 23.11  defamatory, or with respect to the effect of a ballot question, 
 23.12  that the person knows or has reason to believe is false and that 
 23.13  is designed or tends to promote, elect, injure, or defeat a 
 23.14  candidate for nomination or election to a public office or to 
 23.15  promote or defeat a ballot question, that is false, and that the 
 23.16  person knows is false or communicates to others with reckless 
 23.17  disregard of whether it is false. 
 23.18     A person is guilty of a misdemeanor who intentionally 
 23.19  participates in the drafting of a letter to the editor with 
 23.20  respect to the personal or political character or acts of a 
 23.21  candidate, if defamatory, or with respect to the effect of a 
 23.22  ballot question, that the person knows is false and which is 
 23.23  designed or tends to promote, elect, injure, or defeat any 
 23.24  candidate for nomination or election to a public office or to 
 23.25  promote or defeat a ballot question, that is false, and that the 
 23.26  person knows is false or communicates to others with reckless 
 23.27  disregard of whether it is false. 
 23.28     Sec. 37.  [REPEALER.] 
 23.29     Minnesota Statutes 1996, sections 10A.09, subdivision 3; 
 23.30  and 10A.21, subdivisions 1 and 2, are repealed.