Skip to main content Skip to office menu Skip to footer
Minnesota Legislature

Office of the Revisor of Statutes

SF 2471

1st Engrossment - 86th Legislature (2009 - 2010) Posted on 05/17/2010 06:32am

KEY: stricken = removed, old language.
underscored = added, new language.
Line numbers 1.1 1.2 1.3 1.4 1.5 1.6 1.7 1.8 1.9 1.10 1.11 1.12
1.13 1.14 1.15 1.16 1.17 1.18 1.19 1.20 1.21 1.22 1.23 1.24 1.25
1.26
2.1 2.2 2.3 2.4 2.5
2.6 2.7 2.8 2.9 2.10
2.11 2.12 2.13 2.14 2.15 2.16 2.17
2.18 2.19 2.20 2.21 2.22 2.23
2.24 2.25 2.26 2.27 2.28 2.29 2.30 2.31 3.1 3.2 3.3 3.4 3.5 3.6 3.7 3.8 3.9 3.10 3.11
3.12 3.13 3.14 3.15 3.16 3.17 3.18 3.19 3.20 3.21 3.22 3.23 3.24 3.25
3.26 3.27 3.28 3.29 3.30
3.31 3.32 3.33 4.1 4.2 4.3 4.4 4.5 4.6 4.7 4.8 4.9 4.10 4.11 4.12
4.13 4.14
4.15 4.16 4.17 4.18 4.19 4.20
4.21 4.22 4.23 4.24 4.25 4.26 4.27 4.28 4.29 4.30 4.31 4.32 4.33 4.34 5.1 5.2 5.3 5.4 5.5 5.6 5.7 5.8 5.9 5.10 5.11 5.12 5.13 5.14 5.15 5.16 5.17 5.18 5.19 5.20 5.21 5.22 5.23 5.24 5.25 5.26 5.27
5.28 5.29 5.30 5.31 5.32 5.33 5.34
6.1 6.2 6.3 6.4 6.5 6.6 6.7 6.8 6.9 6.10 6.11 6.12 6.13
6.14 6.15 6.16 6.17 6.18 6.19 6.20 6.21 6.22 6.23 6.24 6.25 6.26 6.27 6.28 6.29 6.30 6.31 6.32 6.33 6.34 7.1 7.2 7.3
7.4 7.5 7.6 7.7 7.8 7.9 7.10 7.11 7.12 7.13 7.14 7.15 7.16 7.17 7.18 7.19 7.20 7.21 7.22 7.23 7.24 7.25 7.26 7.27 7.28 7.29 7.30 7.31
7.32 7.33
8.1 8.2 8.3 8.4 8.5 8.6 8.7 8.8 8.9 8.10 8.11
8.12
8.13 8.14 8.15 8.16 8.17 8.18 8.19 8.20 8.21
8.22
8.23 8.24 8.25 8.26
8.27 8.28 8.29 8.30 8.31 8.32 9.1 9.2
9.3 9.4 9.5
9.6 9.7

A bill for an act
relating to state government; regulating certain political expenditures and
contributions; modifying certain filing and reporting requirements; providing
civil penalties; regulating certain filings with the Campaign Finance and Public
Disclosure Board; amending Minnesota Statutes 2008, sections 10A.01,
subdivision 18, by adding subdivisions; 10A.12, by adding subdivisions; 10A.20,
subdivisions 2, 4, 12; 10A.27, by adding subdivisions; 10A.323, as amended;
211B.04; 211B.15, subdivisions 2, 3, by adding a subdivision; 216B.16, by
adding a subdivision; proposing coding for new law in Minnesota Statutes,
chapter 10A; repealing Minnesota Statutes 2008, sections 72A.12, subdivision
5; 211B.15, subdivision 12.

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

Section 1.

Minnesota Statutes 2008, section 10A.01, subdivision 18, is amended to
read:


Subd. 18.

Independent expenditure.

"Independent expenditure" means an
expenditure expressly advocating the election or defeat of a clearly identified candidate,
if the expenditure is made without the express or implied consent, authorization, or
cooperation of, and not in concert with or at the request or suggestion of, any candidate or
any candidate's principal campaign committee or agent. An independent expenditure is
not a contribution to that candidate. deleted text beginAn expenditure by a political party or political party
unit in a race where the political party has a candidate on the ballot is not an independent
expenditure
deleted text endnew text begin An independent expenditure does not include the act of announcing a formal
public endorsement of a candidate for public office, unless the act is simultaneously
accompanied by an expenditure that would otherwise qualify as an independent
expenditure under this subdivision
new text end.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 2.

Minnesota Statutes 2008, section 10A.01, is amended by adding a subdivision
to read:


new text begin Subd. 37. new text end

new text begin Independent expenditure political committee. new text end

new text begin "Independent
expenditure political committee" means a political committee that makes only independent
expenditures and disbursements permitted under section 10A.121, subdivision 1.
new text end

Sec. 3.

Minnesota Statutes 2008, section 10A.01, is amended by adding a subdivision
to read:


new text begin Subd. 38. new text end

new text begin Independent expenditure political fund. new text end

new text begin "Independent expenditure
political fund" means a political fund that makes only independent expenditures and
disbursements permitted under section 10A.121, subdivision 1.
new text end

Sec. 4.

Minnesota Statutes 2008, section 10A.12, is amended by adding a subdivision
to read:


new text begin Subd. 1a. new text end

new text begin When required for independent expenditures. new text end

new text begin An association other
than a political committee that makes only independent expenditures and disbursements
permitted under section 10A.121, subdivision 1, must do so by forming and registering
an independent expenditure political fund if the expenditure is in excess of $100 or by
contributing to an existing independent expenditure political committee or political fund.
new text end

Sec. 5.

Minnesota Statutes 2008, section 10A.12, is amended by adding a subdivision
to read:


new text begin Subd. 1b. new text end

new text begin Penalty for noncompliant independent expenditure. new text end

new text begin An association
that makes an independent expenditure without complying with subdivision 1a is subject
to a civil penalty of up to four times the amount of the independent expenditure, but not to
exceed $25,000, except when the violation was intentional.
new text end

Sec. 6.

new text begin [10A.121] INDEPENDENT EXPENDITURE POLITICAL
COMMITTEES AND INDEPENDENT EXPENDITURE POLITICAL FUNDS.
new text end

new text begin Subdivision 1. new text end

new text begin Permitted disbursements. new text end

new text begin An independent expenditure political
committee or an independent expenditure political fund, in addition to making independent
expenditures, may:
new text end

new text begin (1) pay costs associated with its fund-raising and general operations;
new text end

new text begin (2) pay for communications that do not constitute contributions or approved
expenditures; and
new text end

new text begin (3) make contributions to other independent expenditure political committees or
independent expenditure political funds.
new text end

new text begin Subd. 2. new text end

new text begin Penalty. new text end

new text begin (a) An independent expenditure political committee or
independent expenditure political fund is subject to a civil penalty of up to four times the
amount of the contribution or approved expenditure if it does the following:
new text end

new text begin (1) makes a contribution to a candidate, party unit, political committee, or political
fund other than an independent expenditure political committee or an independent
expenditure political fund; or
new text end

new text begin (2) makes an approved expenditure.
new text end

new text begin (b) No other penalty provided in law may be imposed for conduct that is subject to a
civil penalty under this section.
new text end

Sec. 7.

Minnesota Statutes 2008, section 10A.20, subdivision 2, is amended to read:


Subd. 2.

Time for filing.

(a) The reports must be filed with the board on or before
January 31 of each year and additional reports must be filed as required and in accordance
with paragraphs (b) deleted text beginand (c)deleted text endnew text begin to (d)new text end.

(b) In each year in which the name of the candidate is on the ballot, the report of
the principal campaign committee must be filed 15 days before a primary and ten days
before a general election, seven days before a special primary and a special election,
and ten days after a special election cycle.

(c) In each general election year, a political committeedeleted text begin,deleted text endnew text begin ornew text end political funddeleted text begin, or party
unit
deleted text end must file reports new text begin28 and new text end15 days before a primary and new text begin42 and new text endten days before a
general election.new text begin Beginning in 2012, reports required under this paragraph must also be
filed 56 days before a primary.
new text end

new text begin (d) In each general election year, a party unit must file reports 15 days before a
primary and ten days before a general election.
new text end

Sec. 8.

Minnesota Statutes 2008, section 10A.20, subdivision 4, is amended to read:


Subd. 4.

Period of report.

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

Sec. 9.

Minnesota Statutes 2008, section 10A.20, subdivision 12, is amended to read:


Subd. 12.

Failure to file; penalty.

The board must send a notice by certified mail
to any individual who fails to file a statement required by this section. If an individual
fails to file a statement due January 31 within ten business days after the notice was sent,
the board may impose a late filing fee of deleted text begin$5deleted text endnew text begin $25new text end per day, not to exceed deleted text begin$100deleted text endnew text begin $1,000new text end,
commencing deleted text beginwithdeleted text end the deleted text begin11thdeleted text end day after the notice was sent.

If an individual fails to file a statement due before a primary or election within three
days after the date due, regardless of whether the individual has received any notice, the
board may impose a late filing fee of $50 per day, not to exceed deleted text begin$500deleted text endnew text begin $1,000new text end, commencing
on the deleted text beginfourthdeleted text end day after the date the statement was due.

The board must send an additional notice by certified mail to an individual who fails
to file a statement 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 statement. An individual
who fails to file the statement 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.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective June 1, 2010, and applies to
statements required to be filed on or after that date.
new text end

Sec. 10.

Minnesota Statutes 2008, section 10A.27, is amended by adding a subdivision
to read:


new text begin Subd. 14. new text end

new text begin Contributions of business revenue. new text end

new text begin An association may, if not
prohibited by other law, contribute revenue from the operation of a business to an
independent expenditure political committee or an independent expenditure political fund
without complying with section 10A.27, subdivision 13.
new text end

Sec. 11.

Minnesota Statutes 2008, section 10A.27, is amended by adding a subdivision
to read:


new text begin Subd. 15. new text end

new text begin Contributions of dues or contribution revenue. new text end

new text begin (a) An association
may, if not prohibited by other law, contribute revenue from membership dues or fees, or
from contributions received by the association to an independent expenditure political
committee or an independent expenditure political fund without complying with section
10A.27, subdivision 13. Before the day when the recipient committee or fund's next report
must be filed with the board under section 10A.20, subdivision 2 or 5, an association
that has contributed $5,000 or more in aggregate to independent expenditure political
committees or funds during the calendar year must provide in writing to the recipient's
treasurer a statement that includes the name, address, and amount attributable to each
individual or association that paid the association dues or fees, or made contributions
to the association that, in total, aggregate $1,000 or more of the contribution from the
association to the independent expenditure political committee or fund. The statement
must also include the total amount of the contribution from individuals or associations
not subject to itemization under this section. The statement must be certified as true and
correct by an officer of the donor association.
new text end

new text begin (b) To determine the membership dues or fees, or contributions made by an individual
or association that exceed $1,000 of the contribution made by the donor association to the
independent expenditure political committee or fund, the donor association must:
new text end

new text begin (1) apply a pro rata calculation to all unrestricted dues, fees, and contributions
received by the donor association in the calendar year; or
new text end

new text begin (2) as provided in paragraph (c), identify the specific individuals or associations
whose dues, fees, or contributions are included in the contribution to the independent
expenditure political committee or fund.
new text end

new text begin (c) Dues, fees, or contributions from an individual or association must be identified
in a contribution to an independent expenditure political committee or fund under
paragraph (b), clause (2), if:
new text end

new text begin (1) the individual or association has specifically authorized the donor association to
use the individual's or association's dues, fees, or contributions for this purpose; or
new text end

new text begin (2) if the individual's or association's dues, fees, or contributions to the donor
association are unrestricted and the donor association designates them as the source of the
subject contribution to the independent expenditure political committee or fund. After
a portion of an individual's or association's dues, fees, or contributions to the donor
association have been designated as the source of a contribution to an independent
expenditure political committee or fund, that portion of the individual's or association's
dues, fees, or contributions to the donor association may not be designated as the source of
any other contribution to an independent expenditure political committee or fund.
new text end

new text begin (d) For the purposes of this section, "donor association" means the association
contributing to an independent expenditure political committee or fund that is required to
provide a statement under paragraph (a).
new text end

Sec. 12.

Minnesota Statutes 2008, section 10A.27, is amended by adding a subdivision
to read:


new text begin Subd. 16. new text end

new text begin Treasurer to submit disclosure statements. new text end

new text begin The treasurer of a political
committee or political fund receiving a statement required under section 10A.27,
subdivision 15, must file a copy of the statement before the deadline for the committee
or fund's next report filed with the board under section 10A.20, subdivision 2 or 5, after
receiving the statement.
new text end

Sec. 13.

Minnesota Statutes 2008, section 10A.27, is amended by adding a subdivision
to read:


new text begin Subd. 17. new text end

new text begin Penalty. new text end

new text begin (a) An association that makes a contribution under section
10A.27, subdivision 15, and fails to provide the required statement within the time
specified is subject to a civil penalty of up to four times the amount of the contribution,
but not to exceed $25,000, except when the violation was intentional.
new text end

new text begin (b) An independent expenditure political committee or an independent expenditure
political fund that files a report without including the statement required under section
10A.27, subdivision 15, is subject to a civil penalty of up to four times the amount of the
contribution for which disclosure was not filed, but not to exceed $25,000, except when
the violation was intentional.
new text end

new text begin (c) No other penalty provided in law may be imposed for conduct that is subject to a
civil penalty under this section.
new text end

Sec. 14.

Minnesota Statutes 2008, section 10A.323, as amended by Laws 2010, chapter
184, section 4, is amended to read:


10A.323 AFFIDAVIT OF CONTRIBUTIONS.

In addition to the requirements of section 10A.322, to be eligible to receive a public
subsidy under section 10A.31 a candidate or the candidate's treasurer must file an affidavit
with the board stating that between January 1 of the deleted text beginelectiondeleted text end new text beginprevious new text endyear and the cutoff
date for transactions included in the report of receipts and expenditures due before the
primary election the candidate has accumulated contributions from persons eligible to
vote in this state in at least the amount indicated for the office sought, counting only the
first $50 received from each contributor:

(1) candidates for governor and lieutenant governor running together, $35,000;

(2) candidates for attorney general, $15,000;

(3) candidates for secretary of state and state auditor, separately, $6,000;

(4) candidates for the senate, $3,000; and

(5) candidates for the house of representatives, $1,500.

The affidavit must state the total amount of contributions that have been received
from persons eligible to vote in this state, disregarding the portion of any contribution in
excess of $50.

The candidate or the candidate's treasurer must submit the affidavit required by this
section to the board in writing by the deadline for reporting of receipts and expenditures
before a primary under section 10A.20, subdivision 4.

A candidate for a vacancy to be filled at a special election for which the filing period
does not coincide with the filing period for the general election must submit the affidavit
required by this section to the board within five days after filing the affidavit of candidacy.

Sec. 15.

Minnesota Statutes 2008, section 211B.04, is amended to read:


211B.04 CAMPAIGN LITERATURE MUST INCLUDE DISCLAIMER.

(a) A person who participates in the preparation or dissemination of campaign
material other than as provided in section 211B.05, subdivision 1, that does not
prominently include the name and address of the person or committee causing the material
to be prepared or disseminated in a disclaimer substantially in the form provided in
paragraph (b) or (c) is guilty of a misdemeanor.

(b) Except in cases covered by paragraph (c), the required form of disclaimer is:
"Prepared and paid for by the .......... committee, .........(address)" for material prepared
and paid for by a principal campaign committee, or "Prepared and paid for by the ..........
committee, .........(address), in support of .........(insert name of candidate or ballot
question)" for material prepared and paid for by a person or committee other than a
principal campaign committee.

(c) In the case of broadcast media, the required form of disclaimer is: "Paid for by
the ............ committee."

(d) Campaign material that is not circulated on behalf of a particular candidate
or ballot question must also include in the disclaimer either that it is "in opposition to
.....(insert name of candidate or ballot question.....)"; or that "this publication is not
circulated on behalf of any candidate or ballot question."

(e) This section does not apply to objects stating only the candidate's name and
the office sought, fund-raising tickets, or personal letters that are clearly being sent by
the candidate.

(f) This section does not apply to an individual or association who acts independently
of any candidate, candidate's committee, political committee, or political fund and spends
only from the individual's or association's own resources a sum that is less than deleted text begin$500deleted text endnew text begin
$2,000
new text end in the aggregate to produce or distribute campaign material that is distributed at
least seven days before the election to which the campaign material relates.

(g) This section does not modify or repeal section 211B.06.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective June 1, 2010, and applies to
campaign material prepared and disseminated on or after that date.
new text end

Sec. 16.

Minnesota Statutes 2008, section 211B.15, subdivision 2, is amended to read:


Subd. 2.

Prohibited contributions.

A corporation may not make a contribution
or offer or agree to make a contributiondeleted text begin,deleted text end directly or indirectly, of any money, property,
free service of its officers, employees, or members, or thing of monetary value to a
major political party, organization, committee, or individual to promote or defeat the
candidacy of an individual for nomination, election, or appointment to a political office.
For the purpose of this subdivision, "contribution" includes an expenditure to promote or
defeat the election or nomination of a candidate to a political office that is made with the
authorization or expressed or implied consent of, or in cooperation or in concert with, or at
the request or suggestion of, a candidate or committee established to support or oppose a
candidatenew text begin but does not include an independent expenditure authorized by subdivision 3new text end.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 17.

Minnesota Statutes 2008, section 211B.15, subdivision 3, is amended to read:


Subd. 3.

Independent expenditures.

A corporation may not make an deleted text beginindependentdeleted text end
expenditure or offer or agree to make an deleted text beginindependentdeleted text end expenditure to promote or defeat the
candidacy of an individual for nomination, election, or appointment to a political officenew text begin,
unless the expenditure is an independent expenditure
new text end. For the purpose of this subdivision,
"independent expenditure" deleted text beginmeans an expenditure that is not made with the authorization
or expressed or implied consent of, or in cooperation or concert with, or at the request
or suggestion of, a candidate or committee established to support or oppose a candidate
deleted text endnew text begin
has the meaning given in section 10A.01, subdivision 18
new text end.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 18.

Minnesota Statutes 2008, section 211B.15, is amended by adding a subdivision
to read:


new text begin Subd. 7a. new text end

new text begin Application of penalties. new text end

new text begin No penalty may be imposed for a violation of
this section that is subject to a civil penalty under section 10A.121.
new text end

Sec. 19.

Minnesota Statutes 2008, section 216B.16, is amended by adding a
subdivision to read:


new text begin Subd. 18. new text end

new text begin Election or ballot question expenses. new text end

new text begin The commission may not allow
a public utility to recover from ratepayers expenses resulting from a contribution or
expenditure incurred to promote or defeat a candidate for public office or to advocate
approval or defeat of a ballot question. This subdivision does not prohibit a public utility
from engaging in political activity or making a contribution or expenditure otherwise
permitted by law.
new text end

Sec. 20. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2008, sections 72A.12, subdivision 5; and 211B.15, subdivision
12,
new text end new text begin are repealed.
new text end

Sec. 21. new text beginEFFECTIVE DATE.
new text end

new text begin Except where otherwise provided, this act is effective June 1, 2010.
new text end