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HF 2419

1st Engrossment - 90th Legislature (2017 - 2018) Posted on 02/27/2018 11:55am

KEY: stricken = removed, old language.
underscored = added, new language.

Bill Text Versions

Engrossments
Introduction Posted on 03/15/2017
1st Engrossment Posted on 03/23/2017

Current Version - 1st Engrossment

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A bill for an act
relating to campaign finance; codifying certain campaign finance and public
disclosure rules; amending rulemaking authority of Campaign Finance and Public
Disclosure Board; modifying the length of special election cycle; allowing
electronic submissions of affidavits of contributions; repealing obsolete rules;
amending Minnesota Statutes 2016, sections 10A.01, subdivisions 12, 16; 10A.02,
subdivision 13; 10A.025, subdivision 1a; 10A.04, by adding a subdivision; 10A.071,
subdivision 1; 10A.09, subdivisions 5, 6; 10A.15, by adding a subdivision; 10A.20,
subdivision 3; 10A.25, subdivision 2; 10A.27, by adding subdivisions; 10A.31,
by adding a subdivision; 10A.323; proposing coding for new law in Minnesota
Statutes, chapter 10A; repealing Minnesota Rules, parts 4501.0300, subpart 3;
4501.0500, subpart 2; 4503.0200, subpart 6; 4503.0300, subpart 4; 4503.0400,
subpart 1; 4503.0500, subparts 5, 8; 4503.0700, subparts 2, 3; 4503.1300, subpart
5; 4503.1400, subparts 8, 9; 4503.1450, subparts 1, 3; 4503.1600; 4503.1700;
4503.1800; 4505.0100, subpart 3; 4505.0900, subparts 2, 3, 4, 5, 6, 7; 4511.0500,
subpart 2; 4512.0100, subparts 2, 4, 5; 4525.0210, subpart 1.

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

Section 1.

Minnesota Statutes 2016, section 10A.01, subdivision 12, is amended to read:


Subd. 12.

Depository.

"Depository" means a bank, savings association, or credit union
organized under federal or state law and transacting business within this state.new text begin The
depositories of a political committee or political fund include any depository in which the
committee or fund has a savings, checking, or similar account, or purchases a money market
certificate or certificate of deposit.
new text end

Sec. 2.

Minnesota Statutes 2016, section 10A.01, subdivision 16, is amended to read:


Subd. 16.

Election cycle.

"Election cycle" means the period from January 1 following
a general election for an office to December 31 following the next general election for that
office, except that "election cycle" for a special election means the period from the date the
special election writ is issued to deleted text begin60deleted text end new text begin15 new text enddays after the special election is held. For a regular
election, the period from January 1 of the year prior to an election year through December
31 of the election year is the "election segment" of the election cycle. Each other two-year
segment of an election cycle is a "nonelection segment" of the election cycle. An election
cycle that consists of two calendar years has only an election segment. The election segment
of a special election cycle includes the entire special election cycle.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment and
applies to any special election cycle that starts on or after that date.
new text end

Sec. 3.

Minnesota Statutes 2016, section 10A.02, subdivision 13, is amended to read:


Subd. 13.

Rules.

(a) Chapter 14 applies to the board. The board may adopt rules to carry
out the purposes of this chapternew text begin if, before June 1, 2017, the board has published a notice of
intent to adopt a rule without public hearing under section 14.22, subdivision 1, paragraph
(a); 14.389, subdivision 2; or 14.3895, subdivision 3; a dual notice under section 14.22,
subdivision 2; or a notice of hearing on a proposed rule under section 14.14
new text end.

(b) new text beginAfter May 31, 2017, the board may only adopt rules that (1) incorporate specific
changes set forth in applicable statutes when no interpretation of law is required, or (2)
make changes to rules that do not alter the sense, meaning, or effect of a rule.
new text end

new text begin (c) new text endIn addition to the notice required under chapter 14, the board shall notify the chairs
and ranking minority members of the committees or subcommittees in the senate and house
of representatives with primary jurisdiction over elections within seven calendar days of
taking the following actions:

(1) publication of a notice of intent to adopt rules or a notice of hearing;

(2) publication of proposed rules in the State Register;

(3) issuance of a statement of need and reasonableness; or

(4) adoption of final rules.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment for
rules for which a notice of intent to adopt a rule without public hearing under Minnesota
Statutes, section 14.22, subdivision 1, paragraph (a); 14.389, subdivision 2; or 14.3895,
subdivision 3; a dual notice under Minnesota Statutes, section 14.22, subdivision 2; or a
notice of hearing on a proposed rule under Minnesota Statutes, section 14.14, was published
before June 1, 2017.
new text end

Sec. 4.

Minnesota Statutes 2016, section 10A.025, subdivision 1a, is amended to read:


Subd. 1a.

Electronic filing.

new text begin(a) new text endA report or statement required to be filed under this
chapter may be filed electronically. The board shall adopt rules deleted text beginto regulatedeleted text end new text beginon the technical
aspects of regulating
new text endelectronic filing and deleted text beginto ensuredeleted text end new text beginensuring new text endthat the electronic filing process
is secure.

new text begin (b) A document filed by facsimile transmission or electronic filing system has the same
force and effect as filing an original paper document.
new text end

new text begin (c) In order to provide a secure environment for the submission of electronic files, the
board must require that a filer use a personal identification code when submitting an
electronic file. The board may also request the filer to provide a valid e-mail address in
order to receive confirmation and verification messages from the board.
new text end

new text begin (d) After an electronic file is processed by the board, the information contained in the
electronic file becomes the property of the state subject to the terms of the Data Practices
Act under chapter 13.
new text end

new text begin (e) In the case of a filing by facsimile transmission, the filer must retain the original of
the filed document and a record of the date and time of the transmission. If an electronic
filing system is used to submit an electronic file to the board, the filer must retain as
documentation the database and information on which the electronic submission of data is
based. The database and records are subject to audit as provided in this chapter.
new text end

new text begin (f) Within five days of a request by the board, any person filing a document by facsimile
transmission or electronic filing system shall refile the document by one of the other filing
methods provided in Minnesota Rules, part 4501.0500, subpart 1.
new text end

new text begin (g) Technical problems that prevent the successful submission of a facsimile transmission
or electronic file do not relieve the filer of the responsibility of meeting the requirements
of this chapter. An audit trail that demonstrates that the facsimile transmission or electronic
file was successfully submitted in a timely fashion may be used by the board to waive late
filing fees.
new text end

Sec. 5.

Minnesota Statutes 2016, section 10A.04, is amended by adding a subdivision to
read:


new text begin Subd. 9. new text end

new text begin Reporting by multiple lobbyists representing the same entity. new text end

new text begin Clauses (1)
to (6) apply when a single individual, association, political subdivision, or public higher
education system is represented by more than one lobbyist.
new text end

new text begin (1) The entity must appoint one designated lobbyist to report lobbyist disbursements
made by the entity. The designated lobbyist must indicate that status on the periodic reports
of lobbyist disbursements.
new text end

new text begin (2) A reporting lobbyist may consent to report on behalf of one or more other lobbyists
for the same entity, in which case, the other lobbyists are persons whose activities the
reporting lobbyist must disclose and are subject to the disclosure requirements of subdivision
3. Lobbyist disbursement reports filed by a reporting lobbyist must include the names and
registration numbers of the other lobbyists whose activities are included in the report.
new text end

new text begin (3) Lobbyists whose activities are accounted for by a reporting lobbyist are not required
to file lobbyist disbursement reports.
new text end

new text begin (4) A lobbyist whose lobbying disbursements are provided to the board through a
reporting lobbyist must supply all relevant information on disbursements to the reporting
lobbyist no later than five days before the prescribed filing date.
new text end

new text begin (5) The reporting periods and due dates for a reporting lobbyist are those provided in
subdivision 2. The late filing provisions in subdivision 5 apply to reports required by this
subdivision.
new text end

new text begin (6) The reporting lobbyist must indicate the names and registration numbers of any
lobbyists who did not provide their lobbying disbursements for inclusion in a report. The
late filing provisions in subdivision 5 apply to lobbyists who fail to report information to
the reporting lobbyist.
new text end

Sec. 6.

Minnesota Statutes 2016, section 10A.071, subdivision 1, is amended to read:


Subdivision 1.

Definitions.

(a) The definitions in this subdivision apply to this section.

(b) "Gift" means money, real or personal property, a service, a loan, a forbearance or
forgiveness of indebtedness, or a promise of future employment, that is given and received
without the giver receiving consideration of equal or greater value in return.

(c) "Official" means a public official, an employee of the legislature, or a local official
of a metropolitan governmental unit.

new text begin (d) "Plaque" means a decorative item with an inscription recognizing an individual for
an accomplishment.
new text end

Sec. 7.

Minnesota Statutes 2016, section 10A.09, subdivision 5, is amended to read:


Subd. 5.

Form.

(a) A statement of economic interest required by this section must be
on a form prescribed by the board. The individual filing must provide the following
information:

(1) name, address, occupation, and principal place of business;

(2) the name of each associated business and the nature of that association;

(3) a listing of all real property within the state, excluding homestead property, in which
the individual holds: (i) a fee simple interest, a mortgage, a contract for deed as buyer or
seller, or an option to buy, whether direct or indirect, if the interest is valued in excess of
$2,500; or (ii) an option to buy, if the property has a fair market value of more than $50,000;

(4) a listing of all real property within the state in which a partnership of which the
individual is a member holds: (i) a fee simple interest, a mortgage, a contract for deed as
buyer or seller, or an option to buy, whether direct or indirect, if the individual's share of
the partnership interest is valued in excess of $2,500; or (ii) an option to buy, if the property
has a fair market value of more than $50,000. A listing under this clause or clause (3) must
indicate the street address and the municipality or the section, township, range and
approximate acreage, whichever applies, and the county in which the property is located;

(5) a listing of any investments, ownership, or interests in property connected with
pari-mutuel horse racing in the United States and Canada, including a racehorse, in which
the individual directly or indirectly holds a partial or full interest or an immediate family
member holds a partial or full interest;

(6) a listing of the principal business or professional activity category of each business
from which the individual receives more than $50 in any month as an employee, if the
individual has an ownership interest of 25 percent or more in the business; deleted text beginand
deleted text end

(7) a listing of each principal business or professional activity category from which the
individual received compensation of more than $2,500 in the past 12 months as an
independent contractordeleted text begin.deleted text endnew text begin; and
new text end

new text begin (8) the full name of each security with a value of more than $2,500 owned in part or in
full by the public official at any time during the reporting period.
new text end

(b) The business or professional categories for purposes of paragraph (a), clauses (6)
and (7), must be the general topic headings used by the federal Internal Revenue Service
for purposes of reporting self-employment income on Schedule C. This paragraph does not
require an individual to report any specific code number from that schedule. Any additional
principal business or professional activity category may only be adopted if the category is
enacted by law.

new text begin (c) For the purpose of an original statement of economic interest, "compensation in any
month" includes only compensation received in the calendar month immediately preceding
the date of appointment as a public official or filing as a candidate.
new text end

new text begin (d) For the purpose of calculating the amount of compensation received from any single
source in a single month, the amount shall include the total amount received from the source
during the month, whether or not the amount covers compensation for more than one month.
new text end

Sec. 8.

Minnesota Statutes 2016, section 10A.09, subdivision 6, is amended to read:


Subd. 6.

Annual statement.

new text begin(a) new text endEach individual who is required to file a statement of
economic interest must also file an annual statement by the last Monday in January of each
year that the individual remains in office. The annual statement must cover the period
through December 31 of the year prior to the year when the statement is due. The annual
statement must include the amount of each honorarium in excess of $50 received since the
previous statement and the name and address of the source of the honorarium. The board
must maintain each annual statement of economic interest submitted by an officeholder in
the same file with the statement submitted as a candidate.

new text begin (b) For the purpose of annual statements of economic interest to be filed, "compensation
in any month" includes compensation and honoraria received in any month between the
end of the period covered in the preceding statement of economic interest and the end of
the current period.
new text end

new text begin (c) An individual must file the annual statement of economic interest required by this
subdivision to cover the period for which the individual served as a public official even
though at the time the statement was filed, the individual is no longer holding that office as
a public official.
new text end

Sec. 9.

Minnesota Statutes 2016, section 10A.15, is amended by adding a subdivision to
read:


new text begin Subd. 6. new text end

new text begin Contributions from Hennepin County registered associations. new text end

new text begin In lieu of
registration with the board, an association registered with the Hennepin County filing officer
under sections 383B.041 to 383B.058 that makes contributions of more than $500 to a
committee or fund in a calendar year may notify the recipient committee of its registration
with Hennepin County, including its registration number, and instruct the recipient committee
to include the notice when the recipient committee discloses receipt of the contribution.
new text end

Sec. 10.

new text begin [10A.155] VALUE OF CONTRIBUTIONS OF AUTOMOBILE USE.
new text end

new text begin Automobile use provided to a committee by an individual may be valued at the lowest
rate used by the state to reimburse its employees for automobile use. Alternatively, the value
of the automobile may be calculated as the actual cost of fuel, maintenance, repairs, and
insurance directly related to the use of the automobile. An automobile provided by an
association must be valued at the fair market value for renting an equivalent automobile.
new text end

Sec. 11.

Minnesota Statutes 2016, section 10A.20, subdivision 3, is amended to read:


Subd. 3.

Contents of report.

(a) The report required by this section must include each
of the items listed in paragraphs (b) to deleted text begin(o)deleted text end new text begin(q) new text endthat are applicable to the filer. The board shall
prescribe forms based on filer type indicating which of those items must be included on the
filer's report.

(b) The report must disclose the amount of liquid assets on hand at the beginning of the
reporting period.

(c) The report must disclose the name, address, employer, or occupation if self-employed,
and registration number if registered with the board, of each individual or association that
has made one or more contributions to the reporting entity, including the purchase of tickets
for a fund-raising effort, that in aggregate within the year exceed $200 for legislative or
statewide candidates or more than $500 for ballot questions, together with the amount and
date of each contribution, and the aggregate amount of contributions within the year from
each source so disclosed. A donation in kind must be disclosed at its fair market value. An
approved expenditure must be listed as a donation in kind. A donation in kind is considered
consumed in the reporting period in which it is received. The names of contributors must
be listed in alphabetical order. Contributions from the same contributor must be listed under
the same name. When a contribution received from a contributor in a reporting period is
added to previously reported unitemized contributions from the same contributor and the
aggregate exceeds the disclosure threshold of this paragraph, the name, address, and
employer, or occupation if self-employed, of the contributor must then be listed on the
report.

(d) The report must disclose the sum of contributions to the reporting entity during the
reporting period.

(e) The report must disclose each loan made or received by the reporting entity within
the year in aggregate in excess of $200, continuously reported until repaid or forgiven,
together with the name, address, occupation, principal place of business, if any, and
registration number if registered with the board of the lender and any endorser and the date
and amount of the loan. If a loan made to the principal campaign committee of a candidate
is forgiven or is repaid by an entity other than that principal campaign committee, it must
be reported as a contribution for the year in which the loan was made.

(f) The report must disclose each receipt over $200 during the reporting period not
otherwise listed under paragraphs (c) to (e).

(g) The report must disclose the sum of all receipts of the reporting entity during the
reporting period.

(h) The report must disclose the name, address, and registration number if registered
with the board of each individual or association to whom aggregate expenditures, approved
expenditures, independent expenditures, and ballot question expenditures have been made
by or on behalf of the reporting entity within the year in excess of $200, together with the
amount, date, and purpose of each expenditure and the name and address of, and office
sought by, each candidate on whose behalf the expenditure was made, identification of the
ballot question that the expenditure was intended to promote or defeat and an indication of
whether the expenditure was to promote or to defeat the ballot question, and in the case of
independent expenditures made in opposition to a candidate, the candidate's name, address,
and office sought. A reporting entity making an expenditure on behalf of more than one
candidate for state or legislative office must allocate the expenditure among the candidates
on a reasonable cost basis and report the allocation for each candidate.

(i) The report must disclose the sum of all expenditures made by or on behalf of the
reporting entity during the reporting period.

(j) The report must disclose the amount and nature of an advance of credit incurred by
the reporting entity, continuously reported until paid or forgiven. If an advance of credit
incurred by the principal campaign committee of a candidate is forgiven by the creditor or
paid by an entity other than that principal campaign committee, it must be reported as a
donation in kind for the year in which the advance of credit was made.

(k) The report must disclose the name, address, and registration number if registered
with the board of each political committee, political fund, principal campaign committee,
or party unit to which contributions have been made that aggregate in excess of $200 within
the year and the amount and date of each contribution.

(l) The report must disclose the sum of all contributions made by the reporting entity
during the reporting period.

(m) The report must disclose the name, address, and registration number if registered
with the board of each individual or association to whom noncampaign disbursements have
been made that aggregate in excess of $200 within the year by or on behalf of the reporting
entity and the amount, date, and purpose of each noncampaign disbursement.

(n) The report must disclose the sum of all noncampaign disbursements made within
the year by or on behalf of the reporting entity.

(o) The report must disclose the name and address of a nonprofit corporation that provides
administrative assistance to a political committee or political fund as authorized by section
211B.15, subdivision 17, the type of administrative assistance provided, and the aggregate
fair market value of each type of assistance provided to the political committee or political
fund during the reporting period.

new text begin (p) Legislative, statewide, and judicial candidates, party units, and political committees
and funds must itemize contributions that in aggregate within the year exceed $200 for
legislative or statewide candidates or more than $500 for ballot questions on reports submitted
to the board. The itemization must include the date on which the contribution was received,
the individual or association that provided the contribution, and the address of the contributor.
Additionally, the itemization for a donation in kind must provide a description of the item
or service received. Contributions that are less than the itemization amount must be reported
as an aggregate total.
new text end

new text begin (q) Legislative, statewide, and judicial candidates, party units, political committees and
funds, and committees to promote or defeat a ballot question must itemize expenditures and
noncampaign disbursements that in aggregate exceed $200 in a calendar year on reports
submitted to the board. The itemization must include the date on which the committee made
or became obligated to make the expenditure or disbursement, the name and address of the
vendor that provided the service or item purchased, and a description of the service or item
purchased. Expenditures and noncampaign disbursements must be listed on the report
alphabetically by vendor.
new text end

Sec. 12.

Minnesota Statutes 2016, section 10A.25, subdivision 2, is amended to read:


Subd. 2.

Amounts.

(a) In a segment of an election cycle, the principal campaign
committee of the candidate must not make campaign expenditures nor permit approved
expenditures to be made on behalf of the candidate that result in aggregate expenditures in
excess of the following:

(1) for governor and lieutenant governor, running together, $3,651,200 in the election
segment and $1,564,800 in the nonelection segment;

(2) for attorney general, $626,000 in the election segment and $208,700 in the nonelection
segment;

(3) for secretary of state and state auditor, separately, $417,300 in the election segment
and $104,400 in the nonelection segment;

(4) for state senator, $94,700 in the election segment and $31,600 in a nonelection
segment;

(5) for state representative, $63,100 in the election segment.

(b) In addition to the amount in paragraph (a), clause (1), a candidate for endorsement
for the office of lieutenant governor at the convention of a political party may make campaign
expenditures and approved expenditures of five percent of that amount to seek endorsement.

(c) If a special election cycle occurs during a general election cycle, expenditures by or
on behalf of a candidate in the special election do not count as expenditures by or on behalf
of the candidate in the general election.

(d) The expenditure limits in this subdivision for an office are increased by ten percent
for a candidate who has not previously held the same office, whose name has not previously
been on the primary or general election ballot for that office, and who has not in the past
ten years raised or spent more than $750 in a run for any other office whose territory now
includes a population that is more than one-third of the population in the territory of the
new office. new text beginCandidates who qualify for first-time candidate status receive a ten percent
increase in the campaign expenditure limit in all segments of the applicable election cycle.
new text end In the case of a legislative candidate, the office is that of a member of the house of
representatives or senate without regard to any specific district.

Sec. 13.

Minnesota Statutes 2016, section 10A.27, is amended by adding a subdivision to
read:


new text begin Subd. 16a. new text end

new text begin Return of contributions after merger of governor and lieutenant governor
funds.
new text end

new text begin Funds transferred to the joint committee for candidates for governor and lieutenant
governor that result in aggregate contributions in excess of the applicable limits may be
returned to the contributor within 90 days of the transfer of funds to the joint committee.
new text end

Sec. 14.

Minnesota Statutes 2016, section 10A.27, is amended by adding a subdivision to
read:


new text begin Subd. 16b. new text end

new text begin Special election contribution limits. new text end

new text begin Election segment contribution limits
set forth in this section apply to a special election cycle.
new text end

Sec. 15.

Minnesota Statutes 2016, section 10A.27, is amended by adding a subdivision to
read:


new text begin Subd. 16c. new text end

new text begin Contribution limits apply independently. new text end

new text begin Contribution limits apply
independently for election segments, nonelection segments, and special election cycles.
new text end

Sec. 16.

Minnesota Statutes 2016, section 10A.31, is amended by adding a subdivision to
read:


new text begin Subd. 7b. new text end

new text begin Failure to repay. new text end

new text begin A candidate who fails to repay money required by the
agreement cannot be paid additional public subsidy funds during the current or future election
cycles until the entirety of the unexpended funds and any associated collection fees are
either repaid to the board or discharged by court action.
new text end

Sec. 17.

Minnesota Statutes 2016, section 10A.323, is amended to read:


10A.323 AFFIDAVIT OF CONTRIBUTIONS.

(a) 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:

(1) between January 1 of the previous year and the cutoff date for transactions included
in the report of receipts and expenditures due before the primary election, accumulate
contributions from individuals 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, excluding
in-kind contributions:

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

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

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

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

(v) candidates for the house of representatives, $1,500;

(2) file an affidavit with the board stating that the principal campaign committee has
complied with this paragraph. The affidavit must state the total amount of contributions that
have been received from individuals eligible to vote in this state, excluding:

(i) the portion of any contribution in excess of $50;

(ii) any in-kind contribution; and

(iii) any contribution for which the name and address of the contributor is not known
and recorded; and

(3) 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.

(b) 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 accumulate the
contributions specified in paragraph (a) and must submit the affidavit required by this section
to the board within five days after the close of the filing period for the special election for
which the candidate filed.

new text begin (c) A candidate or the candidate's treasurer must be able to electronically file the affidavit
required under this section in the same manner as other reports required by this chapter.
The board must not require the candidate or candidate's treasurer to notarize the affidavit
of contribution.
new text end

Sec. 18. new text beginREPEALER.
new text end

new text begin Minnesota Rules, parts 4501.0300, subpart 3; 4501.0500, subpart 2; 4503.0200, subpart
6; 4503.0300, subpart 4; 4503.0400, subpart 1; 4503.0500, subparts 5 and 8; 4503.0700,
subparts 2 and 3; 4503.1300, subpart 5; 4503.1400, subparts 8 and 9; 4503.1450, subparts
1 and 3; 4503.1600; 4503.1700; 4503.1800; 4505.0100, subpart 3; 4505.0900, subparts 2,
3, 4, 5, 6, and 7; 4511.0500, subpart 2; 4512.0100, subparts 2, 4, and 5; and 4525.0210,
subpart 1,
new text end new text begin are repealed.
new text end