1.1 	A bill for an act
1.2 	relating to ethics in government; requiring conference committee and budget 
1.3 	negotiations to be open to the public; closing a loophole in disclosure of 
1.4 	economic interests of public officials to include disclosure of certain independent 
1.5 	contracting and consulting; prohibiting former legislators, constitutional officers, 
1.6 	and agency heads from lobbying for seven years after leaving office; requiring 
1.7 	additional disclosure of lobbying and lobbyist contributions; requiring certain 
1.8 	reports of lobbying activity; requiring disclosures of campaign contributions from 
1.9 	lobbyists, principals, and political committees; modifying definition of expressly 
1.10 	advocating; providing for disclosure of electioneering communications; providing 
1.11 	penalties;amending Minnesota Statutes 2014, sections 3.055, subdivision 1; 
1.12 	10A.01, subdivisions 5, 16a; 10A.04, subdivisions 4, 6; 10A.121, subdivision 1; 
1.13 	10A.20, subdivisions 3, 5; 10A.244; 10A.25, subdivision 3a; 10A.27, subdivision 
1.14 	15; proposing coding for new law in Minnesota Statutes, chapter 10A.
1.15 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.16 	Section 1. Minnesota Statutes 2014, section 3.055, subdivision 1, is amended to read:
1.17 		Subdivision 1.Meetings to be open. (a) Meetings of the legislature shall be open 
1.18 	to the public, including sessions of the senate, sessions of the house of representatives, 
1.19 	joint sessions of the senate and the house of representatives, and meetings of a standing 
1.20 	committee, committee division, subcommittee, conference committee, or legislative 
1.21 	commission, but not including a caucus of the members of any of those bodies from the 
1.22 	same house and political party nor a delegation of legislators representing a geographic 
1.23 	area or political subdivision. For purposes of this section, a meeting occurs when a quorum 
1.24 	is present and action is taken regarding a matter within the jurisdiction of the body.
1.25 	(b) In addition to the openness requirements imposed on conference committees by 
1.26 	paragraph (a), from the time a conference committee is appointed until it is disbanded, 
1.27 	any negotiations between senate and house of representatives members of the conference 
2.1 	committee or senate and house of representatives staff members related to the conference 
2.2 	committee or the bill referred to the conference committee must be open to the public.
2.3 	(c) A meeting between the majority leader of the senate and the speaker of the 
2.4 	house or the majority leader of the house of representatives to negotiate budget targets or 
2.5 	formally negotiate the state budget must be open to the public.
2.6 	(d) A meeting to negotiate budget targets or formally negotiate the state budget 
2.7 	must be open to the public if the meeting includes the governor and one or more of the 
2.8 	following members of the legislature:
2.9 	(1) the majority leader of the senate;
2.10 	(2) the speaker of the house or majority leader of the house of representatives; or
2.11 	(3) the minority leader of either the senate or house of representatives.
2.12 	(e) Each house shall provide by rule for posting notices of meetings, recording 
2.13 	proceedings, and making the recordings and votes available to the public.

2.14 	Sec. 2. Minnesota Statutes 2014, section 10A.01, subdivision 5, is amended to read:
2.15 		Subd. 5.Associated business. (a) "Associated business" means an a person 
2.16 	or association, corporation, partnership, limited liability company, limited liability 
2.17 	partnership, or other organized legal entity from which the individual receives 
2.18 	compensation in excess of $50, except for actual and reasonable expenses, in any month 
2.19 	as a director, officer, owner, member, partner, employer or employee, or whose securities 
2.20 	the individual holds worth more than $2,500 at fair market value.
2.21 	(b) Associated business also means a lobbyist, principal, or interested person by 
2.22 	whom the individual is compensated in excess of $50, except for actual and reasonable 
2.23 	expenses, in any month for providing services as an independent contractor or consultant. 
2.24 	If an individual is compensated by a person or association for providing services to a 
2.25 	lobbyist, principal, or interested person, associated business includes both the person or 
2.26 	association that pays the compensation and the lobbyist, principal, or interested person to 
2.27 	whom the services are provided.
2.28 	(c) "Interested person" means a person or a representative of a person or association 
2.29 	that has a direct financial interest in a decision that the individual receiving the 
2.30 	compensation is authorized to make as a public or local official or will be authorized to 
2.31 	make upon becoming a public or local official. To be direct, the financial interest of 
2.32 	the person or association paying the compensation to the individual must be of greater 
2.33 	consequence to the payer than the general interest of other residents or taxpayers of the 
2.34 	individual's governmental unit.

3.1 	Sec. 3. Minnesota Statutes 2014, section 10A.01, subdivision 16a, is amended to read:
3.2 		Subd. 16a.Expressly advocating. "Expressly advocating" means:
3.3 	(1) that a communication clearly identifies a candidate and uses words or phrases 
3.4 	of express advocacy.; or
3.5 	(2) that a communication when taken as a whole and with limited reference to 
3.6 	external events, such as the proximity to the election, is susceptible of no reasonable 
3.7 	interpretation other than as an appeal advocating the election or defeat of one or more 
3.8 	clearly identified candidates.

3.9 	Sec. 4. [10A.035] LOBBYING RESTRICTION.
3.10 	An individual may not act as a lobbyist who attempts to influence legislative or 
3.11 	administrative action for seven years after leaving one of the following offices or positions:
3.12 	(1) member of the legislature;
3.13 	(2) constitutional officer; or
3.14 	(3) commissioner, deputy commissioner, assistant commissioner, or head of any 
3.15 	state department or agency.

3.16 	Sec. 5. Minnesota Statutes 2014, section 10A.04, subdivision 4, is amended to read:
3.17 		Subd. 4.Content. (a) A report under this section must include information the 
3.18 	board requires from the registration form and the information required by this subdivision 
3.19 	for the reporting period.
3.20 	(b) A lobbyist must report a general description of the subject or subjects on which 
3.21 	the lobbyist lobbied on behalf of each principal.
3.22 	(c) A lobbyist must report the total amount of all income from the principal for 
3.23 	lobbying activities on behalf of the principal. The total is not required to be itemized but 
3.24 	the total must include amounts paid to cover the lobbyist's salary and administrative 
3.25 	expenses. The report must include any payments to the lobbyist by any other person for 
3.26 	lobbying activities on behalf of the principal.
3.27 	(b) (d) A lobbyist must report the lobbyist's total disbursements on lobbying, 
3.28 	separately listing lobbying to influence legislative action, lobbying to influence 
3.29 	administrative action, and lobbying to influence the official actions of a metropolitan 
3.30 	governmental unit, and a breakdown of disbursements for each of those kinds of lobbying 
3.31 	into categories specified by the board, including but not limited to the cost of publication 
3.32 	and distribution of each publication used in lobbying; other printing; media, including the 
3.33 	cost of production; postage; travel; fees, including allowances; entertainment; telephone 
3.34 	and telegraph; and other expenses.
4.1 	(c) (e) A lobbyist must report the amount and nature of each gift, item, or benefit, 
4.2 	excluding contributions to a candidate, equal in value to $5 or more, given or paid to any 
4.3 	official, as defined in section 10A.071, subdivision 1, and each contribution to a candidate, 
4.4 	by the lobbyist or an employer or employee at the direction of the lobbyist. The list 
4.5 	must include the name and address of each official to whom the gift, item, or benefit, or 
4.6 	contribution was given or paid and the date it was given or paid.
4.7 	(d) (f) A lobbyist must report each original source of money in excess of $500 in 
4.8 	any year used for the purpose of lobbying to influence legislative action, administrative 
4.9 	action, or the official action of a metropolitan governmental unit. The list must include the 
4.10 	name, address, and employer, or, if self-employed, the occupation and principal place of 
4.11 	business, of each payer of money in excess of $500.
4.12 	(e) On the report due June 15, the lobbyist must provide a general description of the 
4.13 	subjects lobbied in the previous 12 months.
4.14 	(g) A lobbyist must report the amount and date of each contribution given by the 
4.15 	lobbyist to a party organization within a house of the legislature.
4.16 	(h) A lobbyist must report the amount of a contribution in any amount made to a 
4.17 	candidate, principal campaign committee, or party unit. The list must include the name 
4.18 	and address of each candidate, principal campaign committee, or party unit to whom the 
4.19 	contribution was made.

4.20 	Sec. 6. Minnesota Statutes 2014, section 10A.04, subdivision 6, is amended to read:
4.21 		Subd. 6.Principal reports. (a) A principal must report to the board as required in 
4.22 	this subdivision by March 15 for the preceding calendar year.
4.23 	(b) Except as provided in paragraph (d), the principal must report the total amount, 
4.24 	rounded to the nearest $20,000, spent by the principal during the preceding calendar 
4.25 	year to influence legislative action, the total amount spent by the principal during the 
4.26 	preceding calendar year to influence administrative action, and the total amount spent 
4.27 	by the principal during the preceding calendar year to influence the official action of 
4.28 	metropolitan governmental units.
4.29 	(c) Except as provided in paragraph (d), the principal must report under this 
4.30 	subdivision a total amount that includes:
4.31 	(1) all direct payments by the principal to lobbyists in this state;
4.32 	(2) all expenditures for advertising, mailing, research, analysis, compilation and 
4.33 	dissemination of information, and public relations campaigns related to legislative action, 
4.34 	administrative action, or the official action of metropolitan governmental units in this 
4.35 	state; and
5.1 	(3) all salaries and administrative expenses attributable to activities of the principal 
5.2 	or a lobbyist engaged by the principal relating to efforts on behalf of the principal to 
5.3 	influence legislative action, administrative action, or the official action of metropolitan 
5.4 	governmental units in this state.
5.5 	(d) A principal that must report spending to influence administrative action in cases 
5.6 	of rate setting, power plant and powerline siting, and granting of certificates of need under 
5.7 	section 216B.243 must report those amounts as provided in this subdivision, except that 
5.8 	they must be reported separately and not included in the totals required under paragraphs 
5.9 	(b) and (c).
5.10 	(e) A principal must report the amount of a contribution in any amount made to a 
5.11 	candidate, principal campaign committee, or party unit. The list must include the name 
5.12 	and address of each candidate, principal campaign committee, or party unit to whom the 
5.13 	contribution was made.

5.14 	Sec. 7. Minnesota Statutes 2014, section 10A.121, subdivision 1, is amended to read:
5.15 		Subdivision 1.Permitted disbursements. An independent expenditure political 
5.16 	committee or fund, or a ballot question political committee or fund, may:
5.17 	(1) pay costs associated with its fund-raising and general operations;
5.18 	(2) pay for communications that do not constitute contributions or approved 
5.19 	expenditures;
5.20 	(3) make contributions to independent expenditure or ballot question political 
5.21 	committees or funds;
5.22 	(4) make independent expenditures;
5.23 	(5) make expenditures to promote or defeat ballot questions;
5.24 	(6) return a contribution to its source;
5.25 	(7) for a political fund, record bookkeeping entries transferring the association's 
5.26 	general treasury money allocated for political purposes back to the general treasury of 
5.27 	the association; and
5.28 	(8) for a political fund, return general treasury money transferred to a separate 
5.29 	depository to the general depository of the association.; and
5.30 	(9) make disbursements for electioneering communications.

5.31 	Sec. 8. Minnesota Statutes 2014, section 10A.20, subdivision 3, is amended to read:
5.32 		Subd. 3.Contents of report. (a) The report required by this section must include 
5.33 	each of the items listed in paragraphs (b) to (o) (q) that are applicable to the filer. The 
6.1 	board shall prescribe forms based on filer type indicating which of those items must 
6.2 	be included on the filer's report.
6.3 	(b) The report must disclose the amount of liquid assets on hand at the beginning 
6.4 	of the reporting period.
6.5 	(c) The report must disclose the name, address, and employer, or occupation if 
6.6 	self-employed, of each individual or association that has made one or more contributions 
6.7 	to the reporting entity, including the purchase of tickets for a fund-raising effort, that in 
6.8 	aggregate within the year exceed $200 for legislative or statewide candidates or more than 
6.9 	$500 for ballot questions, together with the amount and date of each contribution, and 
6.10 	the aggregate amount of contributions within the year from each source so disclosed. A 
6.11 	donation in kind must be disclosed at its fair market value. An approved expenditure must 
6.12 	be listed as a donation in kind. A donation in kind is considered consumed in the reporting 
6.13 	period in which it is received. The names of contributors must be listed in alphabetical 
6.14 	order. Contributions from the same contributor must be listed under the same name. When 
6.15 	a contribution received from a contributor in a reporting period is added to previously 
6.16 	reported unitemized contributions from the same contributor and the aggregate exceeds 
6.17 	the disclosure threshold of this paragraph, the name, address, and employer, or occupation 
6.18 	if self-employed, of the contributor must then be listed on the report.
6.19 	(d) The report must disclose the sum of contributions to the reporting entity during 
6.20 	the reporting period.
6.21 	(e) The report must disclose each loan made or received by the reporting entity 
6.22 	within the year in aggregate in excess of $200, continuously reported until repaid or 
6.23 	forgiven, together with the name, address, occupation, and principal place of business, 
6.24 	if any, of the lender and any endorser and the date and amount of the loan. If a loan 
6.25 	made to the principal campaign committee of a candidate is forgiven or is repaid by an 
6.26 	entity other than that principal campaign committee, it must be reported as a contribution 
6.27 	for the year in which the loan was made.
6.28 	(f) The report must disclose each receipt over $200 during the reporting period not 
6.29 	otherwise listed under paragraphs (c) to (e).
6.30 	(g) The report must disclose the sum of all receipts of the reporting entity during 
6.31 	the reporting period.
6.32 	(h) The report must disclose the following:
6.33 	(1) the name and address of each individual or association to whom aggregate 
6.34 	expenditures, approved expenditures, independent expenditures, and ballot question 
6.35 	expenditures, and disbursements for electioneering communications have been made by or 
6.36 	on behalf of the reporting entity within the year in excess of $200, together with;
7.1 	(2) the amount, date, and purpose of each expenditure and;
7.2 	(3) the name and address of, and office sought by, each candidate on whose behalf 
7.3 	the expenditure was made, or, in the case of electioneering communications, each 
7.4 	candidate identified positively in the communication;
7.5 	(4) identification of the ballot question that the expenditure was intended to promote 
7.6 	or defeat and an indication of whether the expenditure was to promote or to defeat the 
7.7 	ballot question,; and
7.8 	(5) in the case of independent expenditures made in opposition to a candidate
7.9 	or electioneering communications in which a candidate is identified negatively, the 
7.10 	candidate's name, address, and office sought. 
7.11 	A reporting entity making an expenditure on behalf of more than one candidate 
7.12 	for state or legislative office must allocate the expenditure among the candidates on a 
7.13 	reasonable cost basis and report the allocation for each candidate.
7.14 	(i) The report must disclose the sum of all expenditures made by or on behalf of the 
7.15 	reporting entity during the reporting period.
7.16 	(j) The report must disclose the amount and nature of an advance of credit incurred 
7.17 	by the reporting entity, continuously reported until paid or forgiven. If an advance of credit 
7.18 	incurred by the principal campaign committee of a candidate is forgiven by the creditor or 
7.19 	paid by an entity other than that principal campaign committee, it must be reported as a 
7.20 	donation in kind for the year in which the advance of credit was made.
7.21 	(k) The report must disclose the name and address of each political committee, 
7.22 	political fund, principal campaign committee, or party unit to which contributions have 
7.23 	been made that aggregate in excess of $200 within the year and the amount and date of 
7.24 	each contribution.
7.25 	(l) The report must disclose the sum of all contributions made by the reporting 
7.26 	entity during the reporting period.
7.27 	(m) The report must disclose the name and address of each individual or association 
7.28 	to whom noncampaign disbursements have been made that aggregate in excess of $200 
7.29 	within the year by or on behalf of the reporting entity and the amount, date, and purpose of 
7.30 	each noncampaign disbursement.
7.31 	(n) The report must disclose the sum of all noncampaign disbursements made within 
7.32 	the year by or on behalf of the reporting entity.
7.33 	(o) The report must disclose the name and address of a nonprofit corporation that 
7.34 	provides administrative assistance to a political committee or political fund as authorized 
7.35 	by section 211B.15, subdivision 17, the type of administrative assistance provided, and the 
8.1 	aggregate fair market value of each type of assistance provided to the political committee 
8.2 	or political fund during the reporting period.
8.3 	(p) Notwithstanding any dollar limits in this subdivision, the report must individually 
8.4 	list the amount of a contribution in any amount received from a lobbyist, principal, 
8.5 	political committee, or political fund. The list must include the name and address of each 
8.6 	lobbyist, principal, or political committee.
8.7 	(q) Notwithstanding any dollar limits in this subdivision, the report must individually 
8.8 	list the amount of a contribution in any amount made by a political committee or a political 
8.9 	fund. The list must include the name and address of the recipient of each contribution.

8.10 	Sec. 9. Minnesota Statutes 2014, section 10A.20, subdivision 5, is amended to read:
8.11 		Subd. 5.Pre-election reports. (a) Any loan, contribution, or contributions:
8.12 	(1) to a political committee or political fund from any one source totaling more 
8.13 	than $1,000;
8.14 	(2) to the principal campaign committee of a candidate for an appellate court judicial 
8.15 	office totaling more than $2,000;
8.16 	(3) to the principal campaign committee of a candidate for district court judge 
8.17 	totaling more than $400; or
8.18 	(4) to the principal campaign committee of a candidate for constitutional office or 
8.19 	for the legislature totaling more than 50 percent of the election segment contribution 
8.20 	limit for the office; or
8.21 	(5) received from a lobbyist, principal, or political committee in any amount, 
8.22 	notwithstanding any dollar limit in this subdivision,
8.23 	received between the last day covered in the last report before an election and the election 
8.24 	must be reported to the board in the manner provided in paragraph (b).
8.25 	(b) A loan, contribution, or contributions required to be reported to the board under 
8.26 	paragraph (a) must be reported to the board either:
8.27 	(1) in person by the end of the next business day after its receipt; or
8.28 	(2) by electronic means sent within 24 hours after its receipt.
8.29 	(c) These loans and contributions must also be reported in the next required report.
8.30 	(d) This notice requirement does not apply in a primary election to a candidate who 
8.31 	is unopposed in the primary, in a primary election to a ballot question political committee 
8.32 	or fund, or in a general election to a candidate whose name is not on the general election 
8.33 	ballot. The board must post the report on its Web site by the end of the next business day 
8.34 	after it is received.
9.1 	(e) This subdivision does not apply to a ballot question or independent expenditure 
9.2 	political committee or fund that has not met the registration threshold of section 10A.14, 
9.3 	subdivision 1a. However, if a contribution that would be subject to this section triggers the 
9.4 	registration requirement in section 10A.14, subdivision 1a, then both registration under 
9.5 	that section and reporting under this section are required.

9.6 	Sec. 10. [10A.201] ELECTIONEERING COMMUNICATIONS.
9.7 		Subdivision 1.Electioneering communication. (a) "Electioneering 
9.8 	communication" means a communication distributed by television, radio, satellite, or 
9.9 	cable broadcasting system; by means of printed material, signs, or billboards; through the 
9.10 	use of telephone communications; or by electronic mail or electronic text messaging that:
9.11 	(1) refers to a clearly identified candidate;
9.12 	(2) is made within:
9.13 	(i) 30 days before a primary election or special primary election for the office sought 
9.14 	by the candidate; or
9.15 	(ii) 60 days before a general election or special election for the office sought by 
9.16 	the candidate;
9.17 	(3) is targeted to the relevant electorate; and
9.18 	(4) is made without the express or implied consent, authorization, or cooperation 
9.19 	of, and not in concert with or at the request or suggestion of, a candidate or a candidate's 
9.20 	principal campaign committee or agent.
9.21 	(b) Electioneering communication does not include:
9.22 	(1) the publishing or broadcasting of news items or editorial comments by the news 
9.23 	media;
9.24 	(2) a communication that constitutes an approved expenditure or an independent 
9.25 	expenditure;
9.26 	(3) a voter guide, which is a pamphlet or similar printed material, intended to help 
9.27 	voters compare candidates' positions on a set of issues, as long as each of the following is 
9.28 	true:
9.29 	(i) the guide does not focus on a single issue or a narrow range of issues, but 
9.30 	includes questions and subjects sufficient to encompass major issues of interest to the 
9.31 	entire electorate;
9.32 	(ii) the questions and any other description of the issues are clear and unbiased in 
9.33 	both their structure and content;
9.34 	(iii) the questions posed and provided to the candidates are identical to those 
9.35 	included in the guide;
10.1 	(iv) each candidate included in the guide is given a reasonable amount of time and 
10.2 	the same opportunity as other candidates to respond to the questions;
10.3 	(v) if the candidate is given limited choices for an answer to a question, for example: 
10.4 	"support," "oppose," "yes," or "no," the candidate is also given an opportunity, subject to 
10.5 	reasonable limits, to explain the candidate's position in the candidate's own words; the 
10.6 	fact that a candidate provided an explanation is clearly indicated in the guide; and the 
10.7 	guide clearly indicates that the explanations will be made available for public inspection, 
10.8 	subject to reasonable conditions;
10.9 	(vi) answers included in the guide are those provided by the candidates in response 
10.10 	to questions, the candidate's answers are unedited, and the answers appear in close 
10.11 	proximity to the question to which they respond;
10.12 	(vii) if the guide includes candidates' positions based on information other than 
10.13 	responses provided directly by the candidate, the positions are based on recorded votes 
10.14 	or public statements of the candidates and are presented in an unedited and unbiased 
10.15 	manner; and 
10.16 	(viii) the guide includes all major party candidates for each office listed in the guide;
10.17 	(4) any other communication specified in board rules or advisory opinions as being 
10.18 	excluded from the definition of electioneering communication; or 
10.19 	(5) a communication that:
10.20 	(i) refers to a clearly identified candidate who is an incumbent member of the 
10.21 	legislature or a constitutional officer;
10.22 	(ii) refers to a clearly identified issue that is or was before the legislature in the 
10.23 	form of an introduced bill; and
10.24 	(iii) is made when the legislature is in session or within ten days after the last day of 
10.25 	a regular session of the legislature.
10.26 	(c) A communication that meets the requirements of paragraph (a) but is made with 
10.27 	the authorization or express or implied consent of, or in cooperation or in concert with, or 
10.28 	at the request or suggestion of a candidate, a candidate's principal campaign committee, or 
10.29 	a candidate's agent is an approved expenditure.
10.30 	(d) Distributing a voter guide questionnaire, survey, or similar document to 
10.31 	candidates and communications with candidates limited to obtaining their responses, 
10.32 	without more, do not constitute communications that would result in the voter guide being 
10.33 	an approved expenditure on behalf of the candidate.
10.34 		Subd. 2.Targeted to relevant electorate. (a) For purposes of this section, a 
10.35 	communication that refers to a clearly identified candidate is targeted to the relevant 
10.36 	electorate if the communication is distributed to or can be received by more than 1,500 
11.1 	persons in the district the candidate seeks to represent, in the case of a candidate for the 
11.2 	house of representatives, senate, or a district court judicial office or by more than 6,000 
11.3 	persons in the state, in the case of a candidate for constitutional office or appellate court 
11.4 	judicial office. When determining the number of persons to whom a communication in the 
11.5 	form of printed material, electronic mail, or electronic text messaging is distributed, an 
11.6 	association may exclude communications distributed to its own members.
11.7 	(b) A communication consisting of printed materials, other than signs, billboards, 
11.8 	or advertisements published in the print media, is targeted to the relevant electorate if it 
11.9 	meets the requirements of paragraph (a) and is distributed to voters by means of United 
11.10 	States mail or through direct delivery to a resident's home or business.
11.11 		Subd. 3.Disclosure of electioneering communications. (a) Electioneering 
11.12 	communications made by a political committee, a party unit, or a principal campaign 
11.13 	committee must be disclosed on the periodic reports of receipts and expenditures filed by 
11.14 	the association on the schedule and in accordance with the terms of section 10A.20.
11.15 	(b) An association other than a political committee, party unit, or principal campaign 
11.16 	committee may register a political fund with the board and disclose its electioneering 
11.17 	communications on the reports of receipts and expenditures filed by the political fund. 
11.18 	If it does so, it must disclose its disbursements for electioneering communication on the 
11.19 	schedule and in accordance with the terms of section 10A.20.
11.20 	(c) An association that does not disclose its disbursements for electioneering 
11.21 	communications under paragraph (a) or (b) must disclose its electioneering 
11.22 	communications according to the requirements of subdivision 4.
11.23 		Subd. 4.Statement required for electioneering communications. (a) Except for 
11.24 	associations providing disclosure as specified in subdivision 3, paragraph (a) or (b), every 
11.25 	person who makes a disbursement for the costs of producing or distributing electioneering 
11.26 	communications that aggregate more than $1,500 in a calendar year must, within 24 
11.27 	hours of each disclosure date, file with the board a disclosure statement containing the 
11.28 	information described in this subdivision.
11.29 	(b) Each statement required to be filed under this section must contain the following 
11.30 	information:
11.31 	(1) the names of: (i) the association making the disbursement; (ii) any person 
11.32 	exercising direction or control over the activities of the association with respect to the 
11.33 	disbursement; and (iii) the custodian of the financial records of the association making 
11.34 	the disbursement;
11.35 	(2) the address of the association making the disbursement;
12.1 	(3) the amount of each disbursement of more than $200 during the period covered 
12.2 	by the statement, a description of the purpose of the disbursement, and the identification of 
12.3 	the person to whom the disbursement was made;
12.4 	(4) the names of the candidates identified or to be identified in the communication;
12.5 	(5) if the disbursements were paid out of a segregated bank account that consists 
12.6 	of funds donated specifically for electioneering communications, the name and address 
12.7 	of each person who gave the association more than $200 in aggregate to that account 
12.8 	during the period beginning on the first day of the preceding calendar year and ending on 
12.9 	the disclosure date; and
12.10 	(6) if the disbursements for electioneering communications were made using general 
12.11 	treasury money of the association, an association that has paid more than $5,000 in 
12.12 	aggregate for electioneering communications during the calendar year must file with its 
12.13 	disclosure statement a written statement that includes the name, address, and amount 
12.14 	attributable to each person that paid the association membership dues or fees, or made 
12.15 	donations to the association that, in total, aggregate more than $5,000 of the money used 
12.16 	by the association for electioneering communications. The statement must also include 
12.17 	the total amount of the disbursements for electioneering communications attributable to 
12.18 	persons not subject to itemization under this clause. The statement must be certified as 
12.19 	true by an officer of the association that made the disbursements for the electioneering 
12.20 	communications.
12.21 	(c) To determine the amount of the membership dues or fees, or donations 
12.22 	made by a person to an association and attributable to the association's disbursements 
12.23 	for electioneering communications, the association must separately prorate the total 
12.24 	disbursements made for electioneering communications during the calendar year over all 
12.25 	general treasury money received during the calendar year.
12.26 	(d) If the amount spent for electioneering communications exceeds the amount of 
12.27 	general treasury money received by the association during that year:
12.28 	(1) the electioneering communications must be attributed first to all receipts of 
12.29 	general treasury money received during the calendar year in which the electioneering 
12.30 	communications were made;
12.31 	(2) any amount of current year electioneering communications that exceeds the total 
12.32 	of all receipts of general treasury money during the current calendar year must be prorated 
12.33 	over all general treasury money received in the preceding calendar year; and
12.34 	(3) if the allocation made in clauses (1) and (2) is insufficient to cover the subject 
12.35 	electioneering communications, no further allocation is required.
13.1 	(e) After a portion of the general treasury money received by an association 
13.2 	from a person has been designated as the source of a disbursement for electioneering 
13.3 	communications, that portion of the association's general treasury money received 
13.4 	from that person may not be designated as the source of any other disbursement for 
13.5 	electioneering communications or as the source for any contribution to an independent 
13.6 	expenditure political committee or fund.
13.7 		Subd. 5.Disclosure date. For purposes of this section, the term "disclosure date" 
13.8 	means the earlier of:
13.9 	(1) the first date on which an electioneering communication is publicly distributed, 
13.10 	provided that the person making the electioneering communication has made 
13.11 	disbursements for the direct costs of producing or distributing one or more electioneering 
13.12 	communication aggregating in excess of $1,500; or
13.13 	(2) any other date during the same calendar year on which an electioneering 
13.14 	communication is publicly distributed, provided that the person making the electioneering 
13.15 	communication has made disbursements for the direct costs of distributing one or more 
13.16 	electioneering communication aggregating in excess of $1,500 since the most recent 
13.17 	disclosure date.
13.18 		Subd. 6.Contracts to disburse. For purposes of this section, a person shall be 
13.19 	treated as having made a disbursement if the person has entered into an obligation to 
13.20 	make the disbursement.
13.21 		Subd. 7.Statement of attribution. (a) An electioneering communication must 
13.22 	include a statement of attribution.
13.23 	(1) For communications distributed by printed material, signs, and billboards, the 
13.24 	statement must say, in conspicuous letters: "Paid for by [association name] [address]."
13.25 	(2) For communications distributed by television, radio, satellite, or cable 
13.26 	broadcasting system, the statement must be included at the end of the communication and 
13.27 	must orally state at a volume and speed that a person of ordinary hearing can comprehend: 
13.28 	"The preceding communication was paid for by the [association name]."
13.29 	(3) For communications distributed by telephone, the statement must precede the 
13.30 	communication and must orally state at a volume and speed that a person of ordinary 
13.31 	hearing can comprehend: "The following communication is paid for by the [association 
13.32 	name]."
13.33 	(b) If the communication is paid for by an association registered with the board, the 
13.34 	statement of attribution must use the association's name as it is registered with the board. 
13.35 	If the communication is paid for by an association not registered with the board, the 
14.1 	statement of attribution must use the association's name as it is disclosed to the board on 
14.2 	the association's disclosure statement associated with the communication.
14.3 		Subd. 8.Failure to file; penalty. (a) If a person fails to file a statement required by 
14.4 	this section by the date the statement is due, the board may impose a late filing fee of $50 
14.5 	per day, not to exceed $1,000, commencing the day after the statement was due.
14.6 	(b) The board must send notice by certified mail to a person who fails to file a 
14.7 	statement within ten business days after the statement was due that the person may be 
14.8 	subject to a civil penalty for failure to file the statement. A person who fails to file the 
14.9 	statement within seven days after the certified mail notice was sent by the board is subject 
14.10 	to a civil penalty imposed by the board of up to $1,000.
14.11 	(c) An association that provides disclosure under section 10A.20 rather than under 
14.12 	this section is subject to the late filing fee and civil penalty provisions of section 10A.20 
14.13 	and is not subject to the penalties provided in this subdivision.
14.14 	(d) An association that makes electioneering communications under this section and 
14.15 	willfully fails to provide the statement required by subdivision 4, paragraph (b), clause 
14.16 	(6), within the time specified is subject to an additional civil penalty of up to four times 
14.17 	the amount of the electioneering communications disbursements that should have been 
14.18 	included on the statement.

14.19 	Sec. 11. Minnesota Statutes 2014, section 10A.244, is amended to read:
14.20 	10A.244 VOLUNTARY INACTIVE STATUS; POLITICAL FUNDS.
14.21 		Subdivision 1.Election of voluntary inactive status. An association that has a 
14.22 	political fund registered under this chapter may elect to have the fund placed on voluntary 
14.23 	inactive status if the following conditions are met:
14.24 	(1) the association makes a written request for inactive status;
14.25 	(2) the association has filed all periodic reports required by this chapter and 
14.26 	has received no contributions into its political fund and made no expenditures or 
14.27 	disbursements, including disbursements for electioneering communications, through its 
14.28 	political fund since the last date included on the association's most recent report; and
14.29 	(3) the association has satisfied all obligations to the state for late filing fees and civil 
14.30 	penalties imposed by the board or the board has waived this requirement.
14.31 		Subd. 2.Effect of voluntary inactive status. After an association has complied 
14.32 	with the requirements of subdivision 1:
14.33 	(1) the board must notify the association that its political fund has been placed in 
14.34 	voluntary inactive status and of the terms of this section;
15.1 	(2) the board must stop sending the association reports, forms, and notices of report 
15.2 	due dates that are periodically sent to entities registered with the board;
15.3 	(3) the association is not required to file periodic disclosure reports for its political 
15.4 	fund as otherwise required under this chapter;
15.5 	(4) the association may not accept contributions into its political fund and may 
15.6 	not make expenditures, contributions, or disbursements, including disbursements for 
15.7 	electioneering communications, through its political fund; and
15.8 	(5) if the association maintains a separate depository account for its political fund, 
15.9 	it may continue to pay bank service charges and receive interest paid on that account 
15.10 	while its political fund is in inactive status.
15.11 		Subd. 3.Resumption of active status or termination. (a) An association that 
15.12 	has placed its political fund in voluntary inactive status may resume active status upon 
15.13 	written notice to the board.
15.14 	(b) A political fund placed in voluntary inactive status must resume active status 
15.15 	within 14 days of the date that it has accepted contributions or made expenditures, 
15.16 	contributions, or disbursements, including disbursements for electioneering 
15.17 	communications, that aggregate more than $750 since the political fund was placed on 
15.18 	inactive status. If, after meeting this threshold, the association does not notify the board 
15.19 	that its fund has resumed active status, the board may place the association's political fund 
15.20 	in active status and notify the association of the change in status.
15.21 	(c) An association that has placed its political fund in voluntary inactive status may 
15.22 	terminate the registration of the fund without returning it to active status.
15.23 		Subd. 4.Penalty for financial activity while in voluntary inactive status. If an 
15.24 	association fails to notify the board of its political fund's resumption of active status under 
15.25 	subdivision 3, the board may impose a civil penalty of $50 per day, not to exceed $1,000 
15.26 	commencing on the 15th calendar day after the fund resumed active status.

15.27 	Sec. 12. Minnesota Statutes 2014, section 10A.25, subdivision 3a, is amended to read:
15.28 		Subd. 3a.Independent expenditures and electioneering communications. The 
15.29 	principal campaign committee of a candidate must not make independent expenditures or 
15.30 	disbursements for electioneering communications.

15.31 	Sec. 13. Minnesota Statutes 2014, section 10A.27, subdivision 15, is amended to read:
15.32 		Subd. 15.Contributions or use of general treasury money. (a) An association 
15.33 	may, if not prohibited by other law, contribute its general treasury money to an 
15.34 	independent expenditure or ballot question political committee or fund, including its 
16.1 	own independent expenditure or ballot question political committee or fund, without 
16.2 	complying with subdivision 13.
16.3 	(b) Before the day when the recipient committee or fund's next report must be 
16.4 	filed with the board under section 10A.20, subdivision 2 or 5, an association that 
16.5 	has contributed more than $5,000 in aggregate to independent expenditure political 
16.6 	committees or funds during the calendar year or has contributed more than $5,000 in 
16.7 	aggregate to ballot question political committees or funds during the calendar year must 
16.8 	provide in writing to the recipient's treasurer a statement that includes the name, address, 
16.9 	and amount attributable to each person that paid the association dues or fees, or made 
16.10 	donations to the association that, in total, aggregate more than $5,000 of the contribution 
16.11 	from the association to the independent expenditure or ballot question political committee 
16.12 	or fund. The statement must also include the total amount of the contribution attributable 
16.13 	to persons not subject to itemization under this section. The statement must be certified as 
16.14 	true by an officer of the donor association.
16.15 	(c) To determine the amount of membership dues or fees, or donations made by a 
16.16 	person to an association and attributable to the association's contribution to the independent 
16.17 	expenditure or ballot question political committee or fund, the donor association must:
16.18 	separately prorate the total independent expenditures and ballot question expenditures made 
16.19 	during the calendar year over all general treasury money received during the calendar year.
16.20 	(1) apply a pro rata calculation to all unrestricted dues, fees, and contributions 
16.21 	received by the donor association in the calendar year; or
16.22 	(2) as provided in paragraph (d), identify the specific individuals or associations 
16.23 	whose dues, fees, or contributions are included in the contribution to the independent 
16.24 	expenditure political committee or fund.
16.25 	(d) Dues, fees, or contributions from an individual or association must be identified 
16.26 	in a contribution to an independent expenditure political committee or fund under 
16.27 	paragraph (c), clause (2), if:
16.28 	(1) the individual or association has specifically authorized the donor association to 
16.29 	use the individual's or association's dues, fees, or contributions for this purpose; or
16.30 	(2) the individual's or association's dues, fees, or contributions to the donor 
16.31 	association are unrestricted and the donor association designates them as the source of the 
16.32 	subject contribution to the independent expenditure political committee or fund.
16.33 	(d) If the amount contributed to independent expenditure and ballot question 
16.34 	political committees or funds in a calendar year exceeds the amount of general treasury 
16.35 	money received by the association during that year:
17.1 	(1) the contributions must be attributed first to all receipts of general treasury money 
17.2 	received during the calendar year in which the contributions were made;
17.3 	(2) any amount of current-year contributions that exceeds the total of all receipts of 
17.4 	general treasury money during the current calendar year must be prorated over all general 
17.5 	treasury money received in the preceding calendar year; and
17.6 	(3) if the allocation made in clauses (1) and (2) is insufficient to cover the subject 
17.7 	independent expenditures and ballot question expenditures, no further allocation is 
17.8 	required.
17.9 	(e) After a portion of the general treasury money received by an association from a 
17.10 	person has been designated as the source of a contribution to an independent expenditure 
17.11 	or ballot question political committee or fund, that portion of the association's general 
17.12 	treasury money received from that person may not be designated as the source of any 
17.13 	other contribution to an independent expenditure or ballot question political committee 
17.14 	or fund, or as the source of funds for a disbursement for electioneering communications 
17.15 	made by that association.

17.16 	Sec. 14. EFFECTIVE DATE.
 17.17 	Sections 1 to 13 are effective the day following final enactment.