SF 80

2nd Unofficial Engrossment - 86th Legislature (2009 - 2010) Posted on 12/26/2012 11:17pm

1.1A bill for an act

1.2relating to elections; campaign finance; removing certain unconstitutional
1.3provisions governing independent expenditures in political campaigns;
1.4changing certain definitions, notice requirements, and deadlines; changing
1.5certain campaign expenditure and contribution limits and certain reporting and
1.6registration requirements; authorizing electronic filing of certain items with the
1.7Campaign Finance and Public Disclosure Board; providing contribution limits
1.8for judicial candidates; making certain reports filed with the Campaign Finance
1.9and Public Disclosure Board nonpublic data until certain conditions have been
1.10met; requiring the public subsidy for an eligible candidate be withheld until a
1.11required report has been filed; requiring a report;amending Minnesota Statutes
1.122008, sections 10A.01, subdivisions 18, 26; 10A.03; 10A.04, subdivision 5;
1.1310A.071, subdivisions 1, 3; 10A.08; 10A.09, subdivision 7; 10A.14, subdivisions
1.142, 4, by adding a subdivision; 10A.20, subdivisions 1, 12, by adding subdivisions;
1.1510A.27, subdivision 1; 10A.31, by adding a subdivision; 10A.322, subdivision 1;
1.1610A.323; 10A.35; 13.607, by adding a subdivision; repealing Minnesota Statutes
1.172008, section 10A.20, subdivision 6b.
1.18BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.19    Section 1. Minnesota Statutes 2008, section 10A.01, subdivision 18, is amended to
1.20read:
1.21    Subd. 18. Independent expenditure. "Independent expenditure" means an
1.22expenditure expressly advocating the election or defeat of a clearly identified candidate,
1.23if the expenditure is made without the express or implied consent, authorization, or
1.24cooperation of, and not in concert with or at the request or suggestion of, any candidate or
1.25any candidate's principal campaign committee or agent. An independent expenditure is
1.26not a contribution to that candidate. An expenditure by a political party or political party
1.27unit in a race where the political party has a candidate on the ballot is not an independent
1.28expenditure.

2.1    Sec. 2. Minnesota Statutes 2008, section 10A.01, subdivision 26, is amended to read:
2.2    Subd. 26. Noncampaign disbursement. "Noncampaign disbursement" means
2.3a purchase or payment of money or anything of value made, or an advance of credit
2.4incurred, or a donation in kind received, by a principal campaign committee for any of
2.5the following purposes:
2.6    (1) payment for accounting and legal services;
2.7    (2) return of a contribution to the source;
2.8    (3) repayment of a loan made to the principal campaign committee by that
2.9committee;
2.10    (4) return of a public subsidy;
2.11    (5) payment for food, beverages, and necessary utensils and supplies, entertainment,
2.12and facility rental for a fund-raising event;
2.13    (6) services for a constituent by a member of the legislature or a constitutional officer
2.14in the executive branch, including the costs of preparing and distributing a suggestion or
2.15idea solicitation to constituents, performed from the beginning of the term of office to
2.16adjournment sine die of the legislature in the election year for the office held, and half
2.17the cost of services for a constituent by a member of the legislature or a constitutional
2.18officer in the executive branch performed from adjournment sine die to 60 days after
2.19adjournment sine die;
2.20    (7) payment for food and beverages consumed by a candidate or volunteers while
2.21they are engaged in campaign activities;
2.22    (8) payment for food or a beverage consumed while attending a reception or meeting
2.23directly related to legislative duties;
2.24    (9) payment of expenses incurred by elected or appointed leaders of a legislative
2.25caucus in carrying out their leadership responsibilities;
2.26    (10) payment by a principal campaign committee of the candidate's expenses for
2.27serving in public office, other than for personal uses;
2.28    (11) costs of child care for the candidate's children when campaigning;
2.29    (12) fees paid to attend a campaign school;
2.30    (13) costs of a postelection party during the election year when a candidate's name
2.31will no longer appear on a ballot or the general election is concluded, whichever occurs
2.32first;
2.33    (14) interest on loans paid by a principal campaign committee on outstanding loans;
2.34    (15) filing fees;
2.35    (16) post-general election thank-you notes or advertisements in the news media;
3.1    (17) the cost of campaign material purchased to replace defective campaign material,
3.2if the defective material is destroyed without being used;
3.3    (18) contributions to a party unit;
3.4    (19) payments for funeral gifts or memorials;
3.5    (20) the cost of a magnet less than six inches in diameter containing legislator
3.6contact information and distributed to constituents;
3.7    (21) costs associated with a candidate attending a political party state or national
3.8convention in this state; and
3.9    (22) other purchases or payments specified in board rules or advisory opinions as
3.10being for any purpose other than to influence the nomination or election of a candidate or
3.11to promote or defeat a ballot question; and
3.12(23) costs paid to a third party for processing contributions made by a credit card,
3.13debit card, or electronic check.
3.14    The board must determine whether an activity involves a noncampaign disbursement
3.15within the meaning of this subdivision.
3.16    A noncampaign disbursement is considered to be made in the year in which the
3.17candidate made the purchase of goods or services or incurred an obligation to pay for
3.18goods or services.

3.19    Sec. 3. Minnesota Statutes 2008, section 10A.03, is amended to read:
3.2010A.03 LOBBYIST REGISTRATION.
3.21    Subdivision 1. First registration. A lobbyist must file a registration form with the
3.22board within five days after becoming a lobbyist or being engaged by a new individual,
3.23association, political subdivision, or public higher education system.
3.24    Subd. 2. Form. The board must prescribe a registration form, which must include:
3.25(1) the name and, address, and e-mail address of the lobbyist;
3.26(2) the principal place of business of the lobbyist;
3.27(3) the name and address of each individual, association, political subdivision, or
3.28public higher education system, if any, by whom the lobbyist is retained or employed or
3.29on whose behalf the lobbyist appears; and
3.30(4) the web site address of each association, political subdivision, or public higher
3.31education system identified under part 3 of this subdivision, if the entity maintains a
3.32web site; and
3.33(4) (5) a general description of the subject or subjects on which the lobbyist expects
3.34to lobby.
4.1If the lobbyist lobbies on behalf of an association, the registration form must include
4.2the name and address of the officers and directors of the association.
4.3    Subd. 3. Failure to file. The board must send a notice by certified mail to any
4.4lobbyist who fails to file a registration form within five days after becoming a lobbyist. If
4.5a lobbyist fails to file a form within ten business days after the notice was sent, the board
4.6may impose a late filing fee of $5 per day, not to exceed $100, starting on the 11th day
4.7after the notice was sent. The board must send an additional notice by certified mail to a
4.8lobbyist who fails to file a form within 14 days after the first notice was sent by the board
4.9that the lobbyist may be subject to a civil penalty for failure to file the form. A lobbyist
4.10who fails to file a form within seven days after the second notice was sent by the board is
4.11subject to a civil penalty imposed by the board of up to $1,000.
4.12    Subd. 4. Publication. The restrictions of section 10.60 notwithstanding, the board
4.13may publish the information required in subdivision 2 on its web site.
4.14    Subd. 5. Exemptions. For good cause shown, the board must grant exemptions to
4.15the requirement that e-mail addresses be provided.

4.16    Sec. 4. Minnesota Statutes 2008, section 10A.04, subdivision 5, is amended to read:
4.17    Subd. 5. Late filing. The board must send a notice by certified mail to any lobbyist
4.18or principal who fails after seven days after a filing date imposed by this section to file a
4.19report or statement or to pay a fee required by this section. If a lobbyist or principal fails to
4.20file a report or pay a fee required by this section within ten business days after the notice
4.21was sent report was due, the board may impose a late filing fee of $5 per day, not to exceed
4.22$100, commencing with the 11th day after the notice was sent report was due. The board
4.23must send an additional notice by certified mail to any lobbyist or principal who fails to file
4.24a report or pay a fee within 14 days after the first notice was sent by the board ten business
4.25days after the report was due that the lobbyist or principal may be subject to a civil penalty
4.26for failure to file the report or pay the fee. A lobbyist or principal who fails to file a report
4.27or statement or pay a fee within seven days after the second certified mail notice was sent
4.28by the board is subject to a civil penalty imposed by the board of up to $1,000.

4.29    Sec. 5. Minnesota Statutes 2008, section 10A.071, subdivision 1, is amended to read:
4.30    Subdivision 1. Definitions. (a) The definitions in this subdivision apply to this
4.31section.
4.32(b) "Gift" means money, real or personal property, a service, a loan, a forbearance or
4.33forgiveness of indebtedness, or a promise of future employment, that is given and received
4.34without the giver receiving consideration of equal or greater value in return.
5.1(c) "Official" means a public official, an employee of the legislature, a judge, or a
5.2local official of a metropolitan governmental unit.

5.3    Sec. 6. Minnesota Statutes 2008, section 10A.071, subdivision 3, is amended to read:
5.4    Subd. 3. Exceptions. (a) The prohibitions in this section do not apply if the gift is:
5.5    (1) a contribution as defined in section 10A.01, subdivision 11;
5.6    (2) services to assist an official in the performance of official duties, including
5.7but not limited to providing advice, consultation, information, and communication in
5.8connection with legislation, and services to constituents;
5.9    (3) services of insignificant monetary value;
5.10    (4) a plaque with a resale value of $5 or less;
5.11    (5) a trinket or memento costing $5 or less;
5.12    (6) informational material of unexceptional value with a resale value of $5 or less; or
5.13    (7) food or a beverage given at a reception, meal, or meeting away from the
5.14recipient's place of work by an organization before whom the recipient appears to make a
5.15speech or answer questions as part of a program.
5.16    (b) The prohibitions in this section do not apply if the gift is given:
5.17    (1) because of the recipient's membership in a group, a majority of whose members
5.18are not officials, and an equivalent gift is given to the other members of the group; or
5.19    (2) by a lobbyist or principal who is a member of the family of the recipient, unless
5.20the gift is given on behalf of someone who is not a member of that family.

5.21    Sec. 7. Minnesota Statutes 2008, section 10A.08, is amended to read:
5.2210A.08 REPRESENTATION DISCLOSURE.
5.23A public official who represents a client for a fee before an individual, board,
5.24commission, or agency that has rulemaking authority in a hearing conducted under chapter
5.2514, must disclose the official's participation in the action to the board within 14 days after
5.26the appearance. The board must send a notice by certified mail to any public official
5.27who fails to disclose the participation within 14 days after the appearance. If the public
5.28official fails to disclose the participation within ten business days after the notice was sent
5.29disclosure required by this section was due, the board may impose a late filing fee of $5
5.30per day, not to exceed $100, starting on the 11th day after the notice was sent disclosure
5.31was due. The board must send an additional notice by certified mail to a public official
5.32who fails to disclose the participation within 14 ten business days after the first notice was
5.33sent by the board disclosure was due that the public official may be subject to a civil
5.34penalty for failure to disclose the participation. A public official who fails to disclose the
6.1participation within seven days after the second certified mail notice was sent by the board
6.2is subject to a civil penalty imposed by the board of up to $1,000.

6.3    Sec. 8. Minnesota Statutes 2008, section 10A.09, subdivision 7, is amended to read:
6.4    Subd. 7. Late filing. The board must send a notice by certified mail to any
6.5individual who fails within the prescribed time to file a statement of economic interest
6.6required by this section. If an individual fails to file a statement of economic interest
6.7required by this section within ten business days after the notice was sent, the board may
6.8impose a late filing fee of $5 per day, not to exceed $100, commencing on the 11th day
6.9after the notice was sent statement was due. The board must send an additional notice by
6.10certified mail to any individual who fails to file a statement within 14 ten business days
6.11after the first notice was sent by the board statement was due that the individual may be
6.12subject to a civil penalty for failure to file a statement. An individual who fails to file a
6.13statement within seven days after the second certified mail notice was sent by the board is
6.14subject to a civil penalty imposed by the board up to $1,000.

6.15    Sec. 9. Minnesota Statutes 2008, section 10A.14, subdivision 2, is amended to read:
6.16    Subd. 2. Form. The statement of organization must include:
6.17(1) the name and, address, and web site address if the registrant maintains a web
6.18site, of the committee, fund, or party unit;
6.19(2) the name and, address, and e-mail address of the chair of a political committee,
6.20principal campaign committee, or party unit;
6.21(3) the name and address of any supporting association of a political fund;
6.22(4) the name and, address, and e-mail address of the treasurer and any deputy
6.23treasurers;
6.24(5) the name, address, and e-mail address of the candidate of a principal campaign
6.25committee;
6.26(6) a listing of all depositories or safety deposit boxes used; and
6.27(6) (7) for the state committee of a political party only, a list of its party units.

6.28    Sec. 10. Minnesota Statutes 2008, section 10A.14, subdivision 4, is amended to read:
6.29    Subd. 4. Failure to file; penalty. The board must send a notice by certified mail to
6.30any individual who fails to file a statement required by this section. If the an individual
6.31fails to file a statement required by this section within ten business days after the notice
6.32was sent statement was due, the board may impose a late filing fee of $5 per day, not to
6.33exceed $100, commencing with the 11th day after the notice was sent statement was due.
7.1The board must send an additional notice by certified mail to any individual who
7.2fails to file a statement within 14 ten business days after the first notice was sent by the
7.3board statement was due that the individual may be subject to a civil penalty for failure to
7.4file the report statement. An individual who fails to file the statement within seven days
7.5after the second certified mail notice was sent by the board is subject to a civil penalty
7.6imposed by the board of up to $1,000.

7.7    Sec. 11. Minnesota Statutes 2008, section 10A.14, is amended by adding a subdivision
7.8to read:
7.9    Subd. 5. Exemptions. For good cause shown, the board must grant exemptions to
7.10the requirement that e-mail addresses be provided.

7.11    Sec. 12. Minnesota Statutes 2008, section 10A.20, subdivision 1, is amended to read:
7.12    Subdivision 1. First filing; duration. The treasurer of a political committee,
7.13political fund, principal campaign committee, or party unit must begin to file the reports
7.14required by this section in the first year it receives contributions or makes expenditures
7.15in excess of $100 and must continue to file until the committee, fund, or party unit is
7.16terminated. The reports must be filed electronically in a standards-based open format
7.17specified by the board. For good cause shown, the board must grant exemptions to the
7.18requirement that reports be filed electronically. The board shall release reports for a
7.19specific office to be elected only when all candidate reports for that office are able to be
7.20released.
7.21EFFECTIVE DATE.This section is effective January 1, 2012, and applies to
7.22reports for election years on or after that date.

7.23    Sec. 13. Minnesota Statutes 2008, section 10A.20, is amended by adding a subdivision
7.24to read:
7.25    Subd. 1b. Release of reports. Except as provided in subdivision 1c, a report filed
7.26under this section is nonpublic data until 8:00 a.m. on the day following the day the
7.27report was due.

7.28    Sec. 14. Minnesota Statutes 2008, section 10A.20, is amended by adding a subdivision
7.29to read:
7.30    Subd. 1c. Reports of certain political party units. (a) This subdivision applies to
7.31the following party units:
8.1(1) the two state party units of major political parties that received the highest level
8.2of contributions in the last election year;
8.3(2) the two party units established by members of a major party in the house of
8.4representatives that received the highest level of contributions in the last election year; and
8.5(3) the two party units established by members of a major party in the senate that
8.6received the highest level of contributions in the last election year.
8.7(b) A report filed under this section by a member of one of the party units listed in
8.8paragraph (a) is nonpublic data until the reports of each of the party units in that group
8.9have been filed.
8.10(c) A report filed electronically under this section by a member of one of the party
8.11units listed in paragraph (a) is nonpublic data unless the reports of each of the party
8.12units in that group are filed electronically or until the board has created electronic data
8.13from the nonelectronic report so that data from each report are available in the same
8.14electronic form. The board may produce a viewable image of an electronic report after the
8.15requirements of paragraph (b) have been met.
8.16(d) A party unit may waive the restrictions on publication of data established in this
8.17section through a written statement signed by the treasurer.
8.18(e) Nothing in this subdivision prevents the board from publicly disclosing that an
8.19entity subject to this section has filed a report and the date the report was filed.
8.20(f) Each group listed in paragraph (a) is exempt from the electronic filing requirement
8.21unless both members of the group have approved the filing format specified by the board.

8.22    Sec. 15. Minnesota Statutes 2008, section 10A.20, subdivision 12, is amended to read:
8.23    Subd. 12. Failure to file; penalty. The board must send a notice by certified mail
8.24to any individual who fails to file a statement required by this section. If an individual
8.25fails to file a statement report required by this section that is due January 31 within ten
8.26business days after the notice was sent report was due, the board may impose a late filing
8.27fee of $5 per day, not to exceed $100, commencing with the 11th day after the notice
8.28was sent report was due.
8.29If an individual fails to file a statement report required by this section that is due
8.30before a primary or election within three days after the date due, regardless of whether the
8.31individual has received any notice, the board may impose a late filing fee of $50 per day,
8.32not to exceed $500, commencing on the fourth day after the date the statement was due.
8.33The board must send an additional notice by certified mail to an individual who fails
8.34to file a statement report within 14 ten business days after the first notice was sent by the
8.35board report was due that the individual may be subject to a civil penalty for failure to
9.1file a statement the report. An individual who fails to file the statement report within
9.2seven days after the second certified mail notice was sent by the board is subject to a civil
9.3penalty imposed by the board of up to $1,000.

9.4    Sec. 16. Minnesota Statutes 2008, section 10A.27, subdivision 1, is amended to read:
9.5    Subdivision 1. Contribution limits. (a) Except as provided in subdivision 2,
9.6a candidate must not permit the candidate's principal campaign committee to accept
9.7aggregate contributions made or delivered by any individual, political committee, or
9.8political fund in excess of the following:
9.9(1) to candidates for governor and lieutenant governor running together, $2,000 in
9.10an election year for the office sought and $500 in other years;
9.11(2) to a candidate for attorney general, $1,000 in an election year for the office
9.12sought and $200 in other years;
9.13(3) to a candidate for the office of secretary of state or state auditor, $500 in an
9.14election year for the office sought and $100 in other years;
9.15(4) to a candidate for state senator, $500 $250 in an election year for the office
9.16sought and $100 $50 in other years; and
9.17(5) to a candidate for state representative, $500 in an election year for the office
9.18sought and $100 in the other year; and
9.19(6) to a candidate for judicial office, $2,000 in an election year for the office sought
9.20and $500 in other years.
9.21(b) The following deliveries are not subject to the bundling limitation in this
9.22subdivision:
9.23(1) delivery of contributions collected by a member of the candidate's principal
9.24campaign committee, such as a block worker or a volunteer who hosts a fund-raising
9.25event, to the committee's treasurer; and
9.26(2) a delivery made by an individual on behalf of the individual's spouse.
9.27(c) A lobbyist, political committee, political party unit, or political fund must not
9.28make a contribution a candidate is prohibited from accepting.
9.29EFFECTIVE DATE; APPLICABILITY.This section is effective the day
9.30following final enactment, and applies to contributions received by a candidate for
9.31judicial office on or after that date. A candidate who has accepted a contribution from
9.32an individual, political committee, or political fund between January 1, 2010, and the
9.33effective date of this act may only accept an additional contribution from that individual,
9.34political committee, or political fund during calendar year 2010 to the extent that the
10.1additional contribution does not cause the aggregate amount received from that contributor
10.2to exceed the limit contained in this section.

10.3    Sec. 17. Minnesota Statutes 2008, section 10A.31, is amended by adding a subdivision
10.4to read:
10.5    Subd. 7a. Withholding of public subsidy. If a candidate who is eligible for
10.6payment of public subsidy under this section has not filed the report of receipts and
10.7expenditures required under section 10A.20 before a primary election, any public subsidy
10.8for which that candidate is eligible must be withheld by the board until the candidate
10.9complies with the filing requirements of section 10A.20 and the board has sufficient time
10.10to review or audit the report. If a candidate who is eligible for public subsidy does not file
10.11the report due before the primary election under section 10A.20 by the date that the report
10.12of receipts and expenditures filed before the general election is due, that candidate shall
10.13not be paid public subsidy for that election.

10.14    Sec. 18. Minnesota Statutes 2008, section 10A.322, subdivision 1, is amended to read:
10.15    Subdivision 1. Agreement by candidate. (a) As a condition of receiving a public
10.16subsidy, a candidate must sign and file with the board a written agreement in which the
10.17candidate agrees that the candidate will comply with sections 10A.25; 10A.27, subdivision
10.1810 ; 10A.31, subdivision 7, paragraph (c); 10A.324; and 10A.38.
10.19    (b) Before the first day of filing for office, the board must forward agreement forms to
10.20all filing officers. The board must also provide agreement forms to candidates on request at
10.21any time. The candidate must file the agreement with the board by September 1 preceding
10.22the candidate's general election or a special election held at the general election. An
10.23agreement may not be filed after that date. An agreement once filed may not be rescinded.
10.24    (c) The board must notify the commissioner of revenue of any agreement signed
10.25under this subdivision.
10.26    (d) Notwithstanding paragraph (b), if a vacancy occurs that will be filled by means
10.27of a special election and the filing period does not coincide with the filing period for the
10.28general election, a candidate may sign and submit a spending limit agreement not later
10.29than the day after the candidate files the affidavit of candidacy or nominating petition for
10.30the office close of the filing period for the special election for which the candidate filed.

10.31    Sec. 19. Minnesota Statutes 2008, section 10A.323, is amended to read:
10.3210A.323 AFFIDAVIT OF CONTRIBUTIONS.
11.1    In addition to the requirements of section 10A.322, to be eligible to receive a public
11.2subsidy under section 10A.31 a candidate or the candidate's treasurer must file an affidavit
11.3with the board stating that during that calendar year the candidate has accumulated
11.4contributions from persons eligible to vote in this state in at least the amount indicated for
11.5the office sought, counting only the first $50 received from each contributor:
11.6    (1) candidates for governor and lieutenant governor running together, $35,000;
11.7    (2) candidates for attorney general, $15,000;
11.8    (3) candidates for secretary of state and state auditor, separately, $6,000;
11.9    (4) candidates for the senate, $3,000; and
11.10    (5) candidates for the house of representatives, $1,500.
11.11    The affidavit must state the total amount of contributions that have been received
11.12from persons eligible to vote in this state, disregarding the portion of any contribution in
11.13excess of $50.
11.14    The candidate or the candidate's treasurer must submit the affidavit required by this
11.15section to the board in writing by the cutoff date for reporting of receipts and expenditures
11.16before a primary under section 10A.20, subdivision 4.
11.17    A candidate for a vacancy to be filled at a special election for which the filing period
11.18does not coincide with the filing period for the general election must submit the affidavit
11.19required by this section to the board within five days after filing the affidavit of candidacy
11.20the close of the filing period for the special election for which the candidate filed.

11.21    Sec. 20. Minnesota Statutes 2008, section 10A.35, is amended to read:
11.2210A.35 COMMERCIAL USE OF INFORMATION PROHIBITED.
11.23Information copied from reports and statements filed with the board, other than
11.24reports and statements filed by lobbyists and lobbyist principals, may not be sold or used
11.25by an individual or association for a commercial purpose. Purposes related to elections,
11.26political activities, or law enforcement are not commercial purposes. An individual or
11.27association who violates this section is subject to a civil penalty of up to $1,000. An
11.28individual who knowingly violates this section is guilty of a misdemeanor.

11.29    Sec. 21. Minnesota Statutes 2008, section 13.607, is amended by adding a subdivision
11.30to read:
11.31    Subd. 5a. Campaign reports. Certain reports filed with the Campaign Finance and
11.32Public Disclosure Board are classified under section 10A.20.

12.1    Sec. 22. CAMPAIGN FINANCE AND PUBLIC DISCLOSURE BOARD;
12.2FUNDING OPTION.
12.3The Campaign Finance and Public Disclosure Board shall analyze the potential use
12.4of funds collected under Minnesota Statutes, section 10A.31, as the exclusive source of
12.5funding for the operations of the board.
12.6The board must submit a report describing the board's findings and recommendations
12.7under this section to the chairs of the legislative committees with jurisdiction over
12.8elections finance no later than January 15, 2011.

12.9    Sec. 23. REPEALER.
12.10Minnesota Statutes 2008, section 10A.20, subdivision 6b, is repealed.

12.11    Sec. 24. EFFECTIVE DATE.
12.12Except as otherwise provided, this act is effective the day following final enactment.