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Minnesota Legislature

Office of the Revisor of Statutes

SF 1401

as introduced - 89th Legislature (2015 - 2016) Posted on 03/06/2015 08:40am

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

Current Version - as introduced

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A bill for an act
relating to ethics in government; requiring conference committee and budget
negotiations to be open to the public; closing a loophole in disclosure of
economic interests of public officials to include disclosure of certain independent
contracting and consulting; prohibiting former legislators, constitutional officers,
and agency heads from lobbying for seven years after leaving office; requiring
additional disclosure of lobbying and lobbyist contributions; requiring certain
reports of lobbying activity; requiring disclosures of campaign contributions from
lobbyists, principals, and political committees; modifying definition of expressly
advocating; providing for disclosure of electioneering communications; providing
penalties; amending Minnesota Statutes 2014, sections 3.055, subdivision 1;
10A.01, subdivisions 5, 16a; 10A.04, subdivisions 4, 6; 10A.121, subdivision 1;
10A.20, subdivisions 3, 5; 10A.244; 10A.25, subdivision 3a; 10A.27, subdivision
15; proposing coding for new law in Minnesota Statutes, chapter 10A.

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

Section 1.

Minnesota Statutes 2014, section 3.055, subdivision 1, is amended to read:


Subdivision 1.

Meetings to be open.

new text begin(a) new text endMeetings of the legislature shall be open
to the public, including sessions of the senate, sessions of the house of representatives,
joint sessions of the senate and the house of representatives, and meetings of a standing
committee, committee division, subcommittee, conference committee, or legislative
commission, but not including a caucus of the members of any of those bodies from the
same house and political party nor a delegation of legislators representing a geographic
area or political subdivision. For purposes of this section, a meeting occurs when a quorum
is present and action is taken regarding a matter within the jurisdiction of the body.

new text begin (b) In addition to the openness requirements imposed on conference committees by
paragraph (a), from the time a conference committee is appointed until it is disbanded,
any negotiations between senate and house of representatives members of the conference
committee or senate and house of representatives staff members related to the conference
committee or the bill referred to the conference committee must be open to the public.
new text end

new text begin (c) A meeting between the majority leader of the senate and the speaker of the
house or the majority leader of the house of representatives to negotiate budget targets or
formally negotiate the state budget must be open to the public.
new text end

new text begin (d) A meeting to negotiate budget targets or formally negotiate the state budget
must be open to the public if the meeting includes the governor and one or more of the
following members of the legislature:
new text end

new text begin (1) the majority leader of the senate;
new text end

new text begin (2) the speaker of the house or majority leader of the house of representatives; or
new text end

new text begin (3) the minority leader of either the senate or house of representatives.
new text end

new text begin (e)new text end Each house shall provide by rule for posting notices of meetings, recording
proceedings, and making the recordings and votes available to the public.

Sec. 2.

Minnesota Statutes 2014, section 10A.01, subdivision 5, is amended to read:


Subd. 5.

Associated business.

new text begin(a) new text end"Associated business" means deleted text beginandeleted text endnew text begin a person
or
new text end association, corporation, partnership, limited liability company, limited liability
partnership, or other organized legal entity from which the individual receives
compensation in excess of $50, except for actual and reasonable expenses, in any month
as a director, officer, owner, member, partner, employer or employee, or whose securities
the individual holds worth more than $2,500 at fair market value.

new text begin (b) Associated business also means a lobbyist, principal, or interested person by
whom the individual is compensated in excess of $50, except for actual and reasonable
expenses, in any month for providing services as an independent contractor or consultant.
If an individual is compensated by a person or association for providing services to a
lobbyist, principal, or interested person, associated business includes both the person or
association that pays the compensation and the lobbyist, principal, or interested person to
whom the services are provided.
new text end

new text begin (c) "Interested person" means a person or a representative of a person or association
that has a direct financial interest in a decision that the individual receiving the
compensation is authorized to make as a public or local official or will be authorized to
make upon becoming a public or local official. To be direct, the financial interest of
the person or association paying the compensation to the individual must be of greater
consequence to the payer than the general interest of other residents or taxpayers of the
individual's governmental unit.
new text end

Sec. 3.

Minnesota Statutes 2014, section 10A.01, subdivision 16a, is amended to read:


Subd. 16a.

Expressly advocating.

"Expressly advocating" meansnew text begin:
new text end

new text begin (1)new text end that a communication clearly identifies a candidate and uses words or phrases
of express advocacydeleted text begin.deleted text endnew text begin; or
new text end

new text begin (2) that a communication when taken as a whole and with limited reference to
external events, such as the proximity to the election, is susceptible of no reasonable
interpretation other than as an appeal advocating the election or defeat of one or more
clearly identified candidates.
new text end

Sec. 4.

new text begin [10A.035] LOBBYING RESTRICTION.
new text end

new text begin An individual may not act as a lobbyist who attempts to influence legislative or
administrative action for seven years after leaving one of the following offices or positions:
new text end

new text begin (1) member of the legislature;
new text end

new text begin (2) constitutional officer; or
new text end

new text begin (3) commissioner, deputy commissioner, assistant commissioner, or head of any
state department or agency.
new text end

Sec. 5.

Minnesota Statutes 2014, section 10A.04, subdivision 4, is amended to read:


Subd. 4.

Content.

(a) A report under this section must include information the
board requires from the registration form and the information required by this subdivision
for the reporting period.

new text begin (b) A lobbyist must report a general description of the subject or subjects on which
the lobbyist lobbied on behalf of each principal.
new text end

new text begin (c) A lobbyist must report the total amount of all income from the principal for
lobbying activities on behalf of the principal. The total is not required to be itemized but
the total must include amounts paid to cover the lobbyist's salary and administrative
expenses. The report must include any payments to the lobbyist by any other person for
lobbying activities on behalf of the principal.
new text end

deleted text begin (b)deleted text endnew text begin (d)new text end A lobbyist must report the lobbyist's total disbursements on lobbying,
separately listing lobbying to influence legislative action, lobbying to influence
administrative action, and lobbying to influence the official actions of a metropolitan
governmental unit, and a breakdown of disbursements for each of those kinds of lobbying
into categories specified by the board, including but not limited to the cost of publication
and distribution of each publication used in lobbying; other printing; media, including the
cost of production; postage; travel; fees, including allowances; entertainment; telephone
and telegraph; and other expenses.

deleted text begin (c)deleted text endnew text begin (e)new text end A lobbyist must report the amount and nature of each gift, item, or benefitdeleted text begin,
excluding contributions to a candidate,
deleted text end equal in value to $5 or more, given or paid to any
official, as defined in section 10A.071, subdivision 1new text begin, and each contribution to a candidatenew text end,
by the lobbyist or deleted text beginan employer or employeedeleted text endnew text begin at the directionnew text end of the lobbyist. The list
must include the name and address of each official to whom the gift, item, deleted text beginordeleted text end benefitnew text begin, or
contribution
new text end was given or paid and the date it was given or paid.

deleted text begin (d)deleted text endnew text begin (f)new text end A lobbyist must report each original source of money in excess of $500 in
any year used for the purpose of lobbying to influence legislative action, administrative
action, or the official action of a metropolitan governmental unit. The list must include the
name, address, and employer, or, if self-employed, the occupation and principal place of
business, of each payer of money in excess of $500.

deleted text begin (e) On the report due June 15, the lobbyist must provide a general description of the
subjects lobbied in the previous 12 months.
deleted text end

new text begin (g) A lobbyist must report the amount and date of each contribution given by the
lobbyist to a party organization within a house of the legislature.
new text end

new text begin (h) A lobbyist must report the amount of a contribution in any amount made to a
candidate, principal campaign committee, or party unit. The list must include the name
and address of each candidate, principal campaign committee, or party unit to whom the
contribution was made.
new text end

Sec. 6.

Minnesota Statutes 2014, section 10A.04, subdivision 6, is amended to read:


Subd. 6.

Principal reports.

(a) A principal must report to the board as required in
this subdivision by March 15 for the preceding calendar year.

(b) Except as provided in paragraph (d), the principal must report the total amountdeleted text begin,
rounded to the nearest $20,000,
deleted text end spent by the principal during the preceding calendar
year to influence legislative action, new text beginthe total amount spent by the principal during the
preceding calendar year to influence
new text endadministrative action, and new text beginthe total amount spent
by the principal during the preceding calendar year to influence
new text endthe official action of
metropolitan governmental units.

(c) Except as provided in paragraph (d), the principal must report under this
subdivision a total amount that includes:

(1) all direct payments by the principal to lobbyists in this state;

(2) all expenditures for advertising, mailing, research, analysis, compilation and
dissemination of information, and public relations campaigns related to legislative action,
administrative action, or the official action of metropolitan governmental units in this
state; and

(3) all salaries and administrative expenses attributable to activities of the principal
new text beginor a lobbyist engaged by the principal new text endrelating to efforts new text beginon behalf of the principal new text endto
influence legislative action, administrative action, or the official action of metropolitan
governmental units in this state.

(d) A principal that must report spending to influence administrative action in cases
of rate setting, power plant and powerline siting, and granting of certificates of need under
section 216B.243 must report those amounts as provided in this subdivision, except that
they must be reported separately and not included in the totals required under paragraphs
(b) and (c).

new text begin (e) A principal must report the amount of a contribution in any amount made to a
candidate, principal campaign committee, or party unit. The list must include the name
and address of each candidate, principal campaign committee, or party unit to whom the
contribution was made.
new text end

Sec. 7.

Minnesota Statutes 2014, section 10A.121, subdivision 1, is amended to read:


Subdivision 1.

Permitted disbursements.

An independent expenditure political
committee or fund, or a ballot question political committee or fund, may:

(1) pay costs associated with its fund-raising and general operations;

(2) pay for communications that do not constitute contributions or approved
expenditures;

(3) make contributions to independent expenditure or ballot question political
committees or funds;

(4) make independent expenditures;

(5) make expenditures to promote or defeat ballot questions;

(6) return a contribution to its source;

(7) for a political fund, record bookkeeping entries transferring the association's
general treasury money allocated for political purposes back to the general treasury of
the association; deleted text beginand
deleted text end

(8) for a political fund, return general treasury money transferred to a separate
depository to the general depository of the associationdeleted text begin.deleted text endnew text begin; and
new text end

new text begin (9) make disbursements for electioneering communications.
new text end

Sec. 8.

Minnesota Statutes 2014, 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 endnew text begin (q)new text end that 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, and employer, or occupation if
self-employed, 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, and principal place of business,
if any, 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 thenew text begin following:
new text end

new text begin (1) thenew text end name and address of each individual or association to whom aggregate
expenditures, approved expenditures, independent expenditures, deleted text beginanddeleted text end ballot question
expendituresnew text begin, and disbursements for electioneering communicationsnew text end have been made by or
on behalf of the reporting entity within the year in excess of $200deleted text begin, together withdeleted text endnew text begin;
new text end

new text begin (2)new text end the amount, date, and purpose of each expenditure deleted text beginanddeleted text endnew text begin;
new text end

new text begin (3)new text end the name and address of, and office sought by, each candidate on whose behalf
the expenditure was madedeleted text begin,deleted text endnew text begin or, in the case of electioneering communications, each
candidate identified positively in the communication;
new text end

new text begin (4)new text end 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 questiondeleted text begin,deleted text endnew text begin;new text end and

new text begin (5)new text end in the case of independent expenditures made in opposition to a candidatenew text begin
or electioneering communications in which a candidate is identified negatively
new text end, 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 and address 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 and address 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) Notwithstanding any dollar limits in this subdivision, the report must individually
list the amount of a contribution in any amount received from a lobbyist, principal,
political committee, or political fund. The list must include the name and address of each
lobbyist, principal, or political committee.
new text end

new text begin (q) Notwithstanding any dollar limits in this subdivision, the report must individually
list the amount of a contribution in any amount made by a political committee or a political
fund. The list must include the name and address of the recipient of each contribution.
new text end

Sec. 9.

Minnesota Statutes 2014, section 10A.20, subdivision 5, is amended to read:


Subd. 5.

Pre-election reports.

(a) Any loan, contribution, or contributions:

(1) to a political committee or political fund from any one source totaling more
than $1,000;

(2) to the principal campaign committee of a candidate for an appellate court judicial
office totaling more than $2,000;

(3) to the principal campaign committee of a candidate for district court judge
totaling more than $400; deleted text beginor
deleted text end

(4) to the principal campaign committee of a candidate for constitutional office or
for the legislature totaling more than 50 percent of the election segment contribution
limit for the officenew text begin; or
new text end

new text begin (5) received from a lobbyist, principal, or political committee in any amount,
notwithstanding any dollar limit in this subdivision
new text end,

received between the last day covered in the last report before an election and the election
must be reported to the board in the manner provided in paragraph (b).

(b) A loan, contribution, or contributions required to be reported to the board under
paragraph (a) must be reported to the board either:

(1) in person by the end of the next business day after its receipt; or

(2) by electronic means sent within 24 hours after its receipt.

(c) These loans and contributions must also be reported in the next required report.

(d) This notice requirement does not apply in a primary election to a candidate who
is unopposed in the primary, in a primary election to a ballot question political committee
or fund, or in a general election to a candidate whose name is not on the general election
ballot. The board must post the report on its Web site by the end of the next business day
after it is received.

(e) This subdivision does not apply to a ballot question or independent expenditure
political committee or fund that has not met the registration threshold of section 10A.14,
subdivision 1a. However, if a contribution that would be subject to this section triggers the
registration requirement in section 10A.14, subdivision 1a, then both registration under
that section and reporting under this section are required.

Sec. 10.

new text begin [10A.201] ELECTIONEERING COMMUNICATIONS.
new text end

new text begin Subdivision 1. new text end

new text begin Electioneering communication. new text end

new text begin (a) "Electioneering
communication" means a communication distributed by television, radio, satellite, or
cable broadcasting system; by means of printed material, signs, or billboards; through the
use of telephone communications; or by electronic mail or electronic text messaging that:
new text end

new text begin (1) refers to a clearly identified candidate;
new text end

new text begin (2) is made within:
new text end

new text begin (i) 30 days before a primary election or special primary election for the office sought
by the candidate; or
new text end

new text begin (ii) 60 days before a general election or special election for the office sought by
the candidate;
new text end

new text begin (3) is targeted to the relevant electorate; and
new text end

new text begin (4) is made without the express or implied consent, authorization, or cooperation
of, and not in concert with or at the request or suggestion of, a candidate or a candidate's
principal campaign committee or agent.
new text end

new text begin (b) Electioneering communication does not include:
new text end

new text begin (1) the publishing or broadcasting of news items or editorial comments by the news
media;
new text end

new text begin (2) a communication that constitutes an approved expenditure or an independent
expenditure;
new text end

new text begin (3) a voter guide, which is a pamphlet or similar printed material, intended to help
voters compare candidates' positions on a set of issues, as long as each of the following is
true:
new text end

new text begin (i) the guide does not focus on a single issue or a narrow range of issues, but
includes questions and subjects sufficient to encompass major issues of interest to the
entire electorate;
new text end

new text begin (ii) the questions and any other description of the issues are clear and unbiased in
both their structure and content;
new text end

new text begin (iii) the questions posed and provided to the candidates are identical to those
included in the guide;
new text end

new text begin (iv) each candidate included in the guide is given a reasonable amount of time and
the same opportunity as other candidates to respond to the questions;
new text end

new text begin (v) if the candidate is given limited choices for an answer to a question, for example:
"support," "oppose," "yes," or "no," the candidate is also given an opportunity, subject to
reasonable limits, to explain the candidate's position in the candidate's own words; the
fact that a candidate provided an explanation is clearly indicated in the guide; and the
guide clearly indicates that the explanations will be made available for public inspection,
subject to reasonable conditions;
new text end

new text begin (vi) answers included in the guide are those provided by the candidates in response
to questions, the candidate's answers are unedited, and the answers appear in close
proximity to the question to which they respond;
new text end

new text begin (vii) if the guide includes candidates' positions based on information other than
responses provided directly by the candidate, the positions are based on recorded votes
or public statements of the candidates and are presented in an unedited and unbiased
manner; and
new text end

new text begin (viii) the guide includes all major party candidates for each office listed in the guide;
new text end

new text begin (4) any other communication specified in board rules or advisory opinions as being
excluded from the definition of electioneering communication; or
new text end

new text begin (5) a communication that:
new text end

new text begin (i) refers to a clearly identified candidate who is an incumbent member of the
legislature or a constitutional officer;
new text end

new text begin (ii) refers to a clearly identified issue that is or was before the legislature in the
form of an introduced bill; and
new text end

new text begin (iii) is made when the legislature is in session or within ten days after the last day of
a regular session of the legislature.
new text end

new text begin (c) A communication that meets the requirements of paragraph (a) but is made with
the authorization or express or implied consent of, or in cooperation or in concert with, or
at the request or suggestion of a candidate, a candidate's principal campaign committee, or
a candidate's agent is an approved expenditure.
new text end

new text begin (d) Distributing a voter guide questionnaire, survey, or similar document to
candidates and communications with candidates limited to obtaining their responses,
without more, do not constitute communications that would result in the voter guide being
an approved expenditure on behalf of the candidate.
new text end

new text begin Subd. 2. new text end

new text begin Targeted to relevant electorate. new text end

new text begin (a) For purposes of this section, a
communication that refers to a clearly identified candidate is targeted to the relevant
electorate if the communication is distributed to or can be received by more than 1,500
persons in the district the candidate seeks to represent, in the case of a candidate for the
house of representatives, senate, or a district court judicial office or by more than 6,000
persons in the state, in the case of a candidate for constitutional office or appellate court
judicial office. When determining the number of persons to whom a communication in the
form of printed material, electronic mail, or electronic text messaging is distributed, an
association may exclude communications distributed to its own members.
new text end

new text begin (b) A communication consisting of printed materials, other than signs, billboards,
or advertisements published in the print media, is targeted to the relevant electorate if it
meets the requirements of paragraph (a) and is distributed to voters by means of United
States mail or through direct delivery to a resident's home or business.
new text end

new text begin Subd. 3. new text end

new text begin Disclosure of electioneering communications. new text end

new text begin (a) Electioneering
communications made by a political committee, a party unit, or a principal campaign
committee must be disclosed on the periodic reports of receipts and expenditures filed by
the association on the schedule and in accordance with the terms of section 10A.20.
new text end

new text begin (b) An association other than a political committee, party unit, or principal campaign
committee may register a political fund with the board and disclose its electioneering
communications on the reports of receipts and expenditures filed by the political fund.
If it does so, it must disclose its disbursements for electioneering communication on the
schedule and in accordance with the terms of section 10A.20.
new text end

new text begin (c) An association that does not disclose its disbursements for electioneering
communications under paragraph (a) or (b) must disclose its electioneering
communications according to the requirements of subdivision 4.
new text end

new text begin Subd. 4. new text end

new text begin Statement required for electioneering communications. new text end

new text begin (a) Except for
associations providing disclosure as specified in subdivision 3, paragraph (a) or (b), every
person who makes a disbursement for the costs of producing or distributing electioneering
communications that aggregate more than $1,500 in a calendar year must, within 24
hours of each disclosure date, file with the board a disclosure statement containing the
information described in this subdivision.
new text end

new text begin (b) Each statement required to be filed under this section must contain the following
information:
new text end

new text begin (1) the names of: (i) the association making the disbursement; (ii) any person
exercising direction or control over the activities of the association with respect to the
disbursement; and (iii) the custodian of the financial records of the association making
the disbursement;
new text end

new text begin (2) the address of the association making the disbursement;
new text end

new text begin (3) the amount of each disbursement of more than $200 during the period covered
by the statement, a description of the purpose of the disbursement, and the identification of
the person to whom the disbursement was made;
new text end

new text begin (4) the names of the candidates identified or to be identified in the communication;
new text end

new text begin (5) if the disbursements were paid out of a segregated bank account that consists
of funds donated specifically for electioneering communications, the name and address
of each person who gave the association more than $200 in aggregate to that account
during the period beginning on the first day of the preceding calendar year and ending on
the disclosure date; and
new text end

new text begin (6) if the disbursements for electioneering communications were made using general
treasury money of the association, an association that has paid more than $5,000 in
aggregate for electioneering communications during the calendar year must file with its
disclosure statement a written statement that includes the name, address, and amount
attributable to each person that paid the association membership dues or fees, or made
donations to the association that, in total, aggregate more than $5,000 of the money used
by the association for electioneering communications. The statement must also include
the total amount of the disbursements for electioneering communications attributable to
persons not subject to itemization under this clause. The statement must be certified as
true by an officer of the association that made the disbursements for the electioneering
communications.
new text end

new text begin (c) To determine the amount of the membership dues or fees, or donations
made by a person to an association and attributable to the association's disbursements
for electioneering communications, the association must separately prorate the total
disbursements made for electioneering communications during the calendar year over all
general treasury money received during the calendar year.
new text end

new text begin (d) If the amount spent for electioneering communications exceeds the amount of
general treasury money received by the association during that year:
new text end

new text begin (1) the electioneering communications must be attributed first to all receipts of
general treasury money received during the calendar year in which the electioneering
communications were made;
new text end

new text begin (2) any amount of current year electioneering communications that exceeds the total
of all receipts of general treasury money during the current calendar year must be prorated
over all general treasury money received in the preceding calendar year; and
new text end

new text begin (3) if the allocation made in clauses (1) and (2) is insufficient to cover the subject
electioneering communications, no further allocation is required.
new text end

new text begin (e) After a portion of the general treasury money received by an association
from a person has been designated as the source of a disbursement for electioneering
communications, that portion of the association's general treasury money received
from that person may not be designated as the source of any other disbursement for
electioneering communications or as the source for any contribution to an independent
expenditure political committee or fund.
new text end

new text begin Subd. 5. new text end

new text begin Disclosure date. new text end

new text begin For purposes of this section, the term "disclosure date"
means the earlier of:
new text end

new text begin (1) the first date on which an electioneering communication is publicly distributed,
provided that the person making the electioneering communication has made
disbursements for the direct costs of producing or distributing one or more electioneering
communication aggregating in excess of $1,500; or
new text end

new text begin (2) any other date during the same calendar year on which an electioneering
communication is publicly distributed, provided that the person making the electioneering
communication has made disbursements for the direct costs of distributing one or more
electioneering communication aggregating in excess of $1,500 since the most recent
disclosure date.
new text end

new text begin Subd. 6. new text end

new text begin Contracts to disburse. new text end

new text begin For purposes of this section, a person shall be
treated as having made a disbursement if the person has entered into an obligation to
make the disbursement.
new text end

new text begin Subd. 7. new text end

new text begin Statement of attribution. new text end

new text begin (a) An electioneering communication must
include a statement of attribution.
new text end

new text begin (1) For communications distributed by printed material, signs, and billboards, the
statement must say, in conspicuous letters: "Paid for by [association name] [address]."
new text end

new text begin (2) For communications distributed by television, radio, satellite, or cable
broadcasting system, the statement must be included at the end of the communication and
must orally state at a volume and speed that a person of ordinary hearing can comprehend:
"The preceding communication was paid for by the [association name]."
new text end

new text begin (3) For communications distributed by telephone, the statement must precede the
communication and must orally state at a volume and speed that a person of ordinary
hearing can comprehend: "The following communication is paid for by the [association
name]."
new text end

new text begin (b) If the communication is paid for by an association registered with the board, the
statement of attribution must use the association's name as it is registered with the board.
If the communication is paid for by an association not registered with the board, the
statement of attribution must use the association's name as it is disclosed to the board on
the association's disclosure statement associated with the communication.
new text end

new text begin Subd. 8. new text end

new text begin Failure to file; penalty. new text end

new text begin (a) If a person fails to file a statement required by
this section by the date the statement is due, the board may impose a late filing fee of $50
per day, not to exceed $1,000, commencing the day after the statement was due.
new text end

new text begin (b) The board must send notice by certified mail to a person who fails to file a
statement within ten business days after the statement was due that the person may be
subject to a civil penalty for failure to file the statement. A person who fails to file the
statement within seven days after the certified mail notice was sent by the board is subject
to a civil penalty imposed by the board of up to $1,000.
new text end

new text begin (c) An association that provides disclosure under section 10A.20 rather than under
this section is subject to the late filing fee and civil penalty provisions of section 10A.20
and is not subject to the penalties provided in this subdivision.
new text end

new text begin (d) An association that makes electioneering communications under this section and
willfully fails to provide the statement required by subdivision 4, paragraph (b), clause
(6), within the time specified is subject to an additional civil penalty of up to four times
the amount of the electioneering communications disbursements that should have been
included on the statement.
new text end

Sec. 11.

Minnesota Statutes 2014, section 10A.244, is amended to read:


10A.244 VOLUNTARY INACTIVE STATUS; POLITICAL FUNDS.

Subdivision 1.

Election of voluntary inactive status.

An association that has a
political fund registered under this chapter may elect to have the fund placed on voluntary
inactive status if the following conditions are met:

(1) the association makes a written request for inactive status;

(2) the association has filed all periodic reports required by this chapter and
has received no contributions into its political fund and made no expenditures or
disbursementsnew text begin, including disbursements for electioneering communications,new text end through its
political fund since the last date included on the association's most recent report; and

(3) the association has satisfied all obligations to the state for late filing fees and civil
penalties imposed by the board or the board has waived this requirement.

Subd. 2.

Effect of voluntary inactive status.

After an association has complied
with the requirements of subdivision 1:

(1) the board must notify the association that its political fund has been placed in
voluntary inactive status and of the terms of this section;

(2) the board must stop sending the association reports, forms, and notices of report
due dates that are periodically sent to entities registered with the board;

(3) the association is not required to file periodic disclosure reports for its political
fund as otherwise required under this chapter;

(4) the association may not accept contributions into its political fund and may
not make expenditures, contributions, or disbursementsnew text begin, including disbursements for
electioneering communications,
new text end through its political fund; and

(5) if the association maintains a separate depository account for its political fund,
it may continue to pay bank service charges and receive interest paid on that account
while its political fund is in inactive status.

Subd. 3.

Resumption of active status or termination.

(a) An association that
has placed its political fund in voluntary inactive status may resume active status upon
written notice to the board.

(b) A political fund placed in voluntary inactive status must resume active status
within 14 days of the date that it has accepted contributions or made expenditures,
contributions, or disbursementsnew text begin, including disbursements for electioneering
communications,
new text end that aggregate more than $750 since the political fund was placed on
inactive status. If, after meeting this threshold, the association does not notify the board
that its fund has resumed active status, the board may place the association's political fund
in active status and notify the association of the change in status.

(c) An association that has placed its political fund in voluntary inactive status may
terminate the registration of the fund without returning it to active status.

Subd. 4.

Penalty for financial activity while in voluntary inactive status.

If an
association fails to notify the board of its political fund's resumption of active status under
subdivision 3, the board may impose a civil penalty of $50 per day, not to exceed $1,000
commencing on the 15th calendar day after the fund resumed active status.

Sec. 12.

Minnesota Statutes 2014, section 10A.25, subdivision 3a, is amended to read:


Subd. 3a.

Independent expendituresnew text begin and electioneering communicationsnew text end.

The
principal campaign committee of a candidate must not make independent expendituresnew text begin or
disbursements for electioneering communications
new text end.

Sec. 13.

Minnesota Statutes 2014, section 10A.27, subdivision 15, is amended to read:


Subd. 15.

Contributions or use of general treasury money.

(a) An association
may, if not prohibited by other law, contribute its general treasury money to an
independent expenditure or ballot question political committee or fund, including its
own independent expenditure or ballot question political committee or fund, without
complying with subdivision 13.

(b) 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 more than $5,000 in aggregate to independent expenditure political
committees or funds during the calendar year or has contributed more than $5,000 in
aggregate to ballot question 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 person that paid the association dues or fees, or made
donations to the association that, in total, aggregate more than $5,000 of the contribution
from the association to the independent expenditure or ballot question political committee
or fund. The statement must also include the total amount of the contribution attributable
to persons not subject to itemization under this section. The statement must be certified as
true by an officer of the donor association.

(c) To determine the amount of membership dues or fees, or donations made by a
person to an association and attributable to the association's contribution to the independent
expenditure or ballot question political committee or fund, the donor association mustdeleted text begin:deleted text endnew text begin
separately prorate the total independent expenditures and ballot question expenditures made
during the calendar year over all general treasury money received during the calendar year.
new text end

deleted 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
deleted text end

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

deleted text begin (d) 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 (c), clause (2), if:
deleted text end

deleted 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
deleted text end

deleted text begin (2) 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.
deleted text end

new text begin (d) If the amount contributed to independent expenditure and ballot question
political committees or funds in a calendar year exceeds the amount of general treasury
money received by the association during that year:
new text end

new text begin (1) the contributions must be attributed first to all receipts of general treasury money
received during the calendar year in which the contributions were made;
new text end

new text begin (2) any amount of current-year contributions that exceeds the total of all receipts of
general treasury money during the current calendar year must be prorated over all general
treasury money received in the preceding calendar year; and
new text end

new text begin (3) if the allocation made in clauses (1) and (2) is insufficient to cover the subject
independent expenditures and ballot question expenditures, no further allocation is
required.
new text end

(e) After a portion of the general treasury money received by an association from a
person has been designated as the source of a contribution to an independent expenditure
or ballot question political committee or fund, that portion of the association's general
treasury money received from that person may not be designated as the source of any
other contribution to an independent expenditure or ballot question political committee
or fundnew text begin, or as the source of funds for a disbursement for electioneering communications
made by that association
new text end.

Sec. 14. new text beginEFFECTIVE DATE.
new text end

new text begin Sections 1 to 13 are effective the day following final enactment.
new text end