1.1                          A bill for an act 
  1.2             relating to campaign finance; providing for the 
  1.3             campaign finance and public disclosure board to 
  1.4             administer the law on corporate political 
  1.5             contributions; expanding permitted activities under 
  1.6             the corporate political contribution law; modifying 
  1.7             penalties for corporate political contributions; 
  1.8             eliminating certain criminal penalties; requiring 
  1.9             labor organizations to allow employees to indicate 
  1.10            agreement to use certain fees for certain political 
  1.11            purposes; amending Minnesota Statutes 2002, sections 
  1.12            10A.071, subdivision 3; 10A.16; 10A.17, subdivision 5; 
  1.13            10A.20, subdivision 6b; 10A.29; 10A.37; 211B.15, 
  1.14            subdivisions 1, 6, 7, 11, 12, 16, 17, by adding 
  1.15            subdivisions; proposing coding for new law in 
  1.16            Minnesota Statutes, chapter 211B. 
  1.17  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.18     Section 1.  Minnesota Statutes 2002, section 10A.071, 
  1.19  subdivision 3, is amended to read: 
  1.20     Subd. 3.  [EXCEPTIONS.] (a) The prohibitions in this 
  1.21  section do not apply if the gift is: 
  1.22     (1) a contribution as defined in section 10A.01, 
  1.23  subdivision 11; 
  1.24     (2) services to assist an official in the performance of 
  1.25  official duties, including but not limited to providing advice, 
  1.26  consultation, information, and communication in connection with 
  1.27  legislation, and services to constituents; 
  1.28     (3) services of insignificant monetary value; 
  1.29     (4) a plaque, framed certificate, or similar memento 
  1.30  recognizing individual services in a field of specialty or to a 
  1.31  charitable cause; 
  2.1      (5) a trinket or memento of insignificant value; 
  2.2      (6) informational material of unexceptional value; or 
  2.3      (7) food or a beverage given at a reception, meal, or 
  2.4   meeting away from the recipient's place of work by an 
  2.5   organization before whom the recipient appears to make a speech 
  2.6   or answer questions as part of a program. 
  2.7      (b) The prohibitions in this section do not apply if the 
  2.8   gift is given: 
  2.9      (1) because of the recipient's membership in a group, a 
  2.10  majority of whose members are not officials, and an equivalent 
  2.11  gift is given to the other members of the group; or 
  2.12     (2) by a lobbyist or principal who is a member of the 
  2.13  family of the recipient, unless the gift is given on behalf of 
  2.14  someone who is not a member of that family. 
  2.15     Sec. 2.  Minnesota Statutes 2002, section 10A.16, is 
  2.16  amended to read: 
  2.17     10A.16 [EARMARKING CONTRIBUTIONS PROHIBITED.] 
  2.18     An individual, political committee, political fund, 
  2.19  principal campaign committee, or party unit may not solicit or 
  2.20  accept a contribution from any source with the express or 
  2.21  implied condition that the contribution or any part of it be 
  2.22  directed to a particular candidate other than the initial 
  2.23  recipient.  An individual, political committee, political fund, 
  2.24  principal campaign committee, or party unit that knowingly 
  2.25  accepts any earmarked contribution is ~~guilty of a gross~~ 
  2.26  ~~misdemeanor and~~ subject to a civil penalty imposed by the board 
  2.27  of up to $3,000. 
  2.28     Sec. 3.  Minnesota Statutes 2002, section 10A.17, 
  2.29  subdivision 5, is amended to read: 
  2.30     Subd. 5.  [PENALTY.] A person who violates subdivision 2 is 
  2.31  subject to a civil penalty imposed by the board of up to 
  2.32  $1,000.  A person who knowingly violates subdivision 3a or 4 or 
  2.33  falsely claims that an expenditure was an independent 
  2.34  expenditure is ~~guilty of a gross misdemeanor and~~ subject to a 
  2.35  civil penalty imposed by the board of up to $3,000.  
  2.36     Sec. 4.  Minnesota Statutes 2002, section 10A.20, 
  3.1   subdivision 6b, is amended to read: 
  3.2      Subd. 6b.  [INDEPENDENT EXPENDITURES; NOTICE.] (a) Within 
  3.3   24 hours after an individual, political committee, or political 
  3.4   fund makes or becomes obligated by oral or written agreement to 
  3.5   make an independent expenditure in excess of $100, other than an 
  3.6   expenditure by an association targeted to inform solely its own 
  3.7   dues-paying members of the association's position on a 
  3.8   candidate, the individual, political committee, or political 
  3.9   fund must file with the board an affidavit notifying the board 
  3.10  of the intent to make the independent expenditure and serve a 
  3.11  copy of the affidavit on each candidate in the affected race and 
  3.12  on the treasurer of the candidate's principal campaign 
  3.13  committee.  The affidavit must contain the information with 
  3.14  respect to the expenditure that is required to be reported under 
  3.15  subdivision 3, paragraph (g); except that if an expenditure is 
  3.16  reported before it is made, the notice must include a reasonable 
  3.17  estimate of the anticipated amount.  Each new expenditure 
  3.18  requires a new notice. 
  3.19     (b) An individual or the treasurer of a political committee 
  3.20  or political fund who fails to give notice as required by this 
  3.21  subdivision, or who files a false affidavit of notice, ~~is guilty~~ 
  3.22  ~~of a gross misdemeanor and~~ is subject to a civil fine of up to 
  3.23  four times the amount of the independent expenditure stated in 
  3.24  the notice or of which notice was required, whichever is greater.
  3.25     Sec. 5.  Minnesota Statutes 2002, section 10A.29, is 
  3.26  amended to read: 
  3.27     10A.29 [CIRCUMVENTION PROHIBITED.] 
  3.28     An individual or association that attempts to circumvent 
  3.29  this chapter by redirecting a contribution through, or making a 
  3.30  contribution on behalf of, another individual or association is 
  3.31  ~~guilty of a gross misdemeanor and~~ subject to a civil penalty 
  3.32  imposed by the board of up to $3,000. 
  3.33     Sec. 6.  Minnesota Statutes 2002, section 10A.37, is 
  3.34  amended to read: 
  3.35     10A.37 [FREEDOM TO ASSOCIATE AND COMMUNICATE.] 
  3.36     Nothing in this chapter may be construed to abridge the 
  4.1   right of an association to communicate with its members, 
  4.2   shareholders, employees, and their families. 
  4.3      Sec. 7.  Minnesota Statutes 2002, section 211B.15, 
  4.4   subdivision 1, is amended to read: 
  4.5      Subdivision 1.  [DEFINITIONS.] (a) ~~For purposes of~~ The 
  4.6   definitions in this subdivision apply to this section~~,~~. 
  4.7      (b) "Corporation" means: 
  4.8      (1) a corporation organized for profit that does business 
  4.9   in this state; 
  4.10     (2) a nonprofit corporation that carries out activities in 
  4.11  this state; or 
  4.12     (3) a limited liability company formed under chapter 322B, 
  4.13  or under similar laws of another state, that does business in 
  4.14  this state. 
  4.15     (c) "Political office" means an elective office of the 
  4.16  state or a political subdivision, but does not include the 
  4.17  office of president of the United States or the office of 
  4.18  senator or representative in Congress. 
  4.19     Sec. 8.  Minnesota Statutes 2002, section 211B.15, 
  4.20  subdivision 6, is amended to read: 
  4.21     Subd. 6.  [PENALTY FOR INDIVIDUALS.] (a) An officer, 
  4.22  manager, stockholder, member, agent, employee, attorney, or 
  4.23  other representative of a corporation acting in behalf of the 
  4.24  corporation who intentionally violates this section by making a 
  4.25  prohibited contribution, not including a contribution of money, 
  4.26  with a value less than $5,000 is subject to a civil penalty in 
  4.27  an amount not more than four times the value of the prohibited 
  4.28  contribution. 
  4.29     (b) An officer, manager, stockholder, member, agent, 
  4.30  employee, attorney, or other representative of a corporation 
  4.31  acting on behalf of the corporation who intentionally violates 
  4.32  this section by making a prohibited contribution with a value of 
  4.33  $5,000 or more or who makes a prohibited contribution of money 
  4.34  may be fined not more than $20,000 or be imprisoned for not more 
  4.35  than ~~five years~~ one year, or both.  
  4.36     Sec. 9.  Minnesota Statutes 2002, section 211B.15, 
  5.1   subdivision 7, is amended to read: 
  5.2      Subd. 7.  [PENALTY FOR CORPORATIONS.] A corporation 
  5.3   ~~convicted of violating~~ that intentionally violates this section 
  5.4   by making a prohibited contribution with a value up to $5,000, 
  5.5   not including a contribution of money, is subject to a ~~fine~~ 
  5.6   civil penalty in an amount of not more than four times the value 
  5.7   of the prohibited contribution but not greater than 
  5.8   ~~$40,000~~ $20,000.  A ~~convicted~~ domestic corporation that 
  5.9   intentionally makes a prohibited contribution in excess of 
  5.10  $5,000 or a prohibited contribution of money, in addition to 
  5.11  being subject to a civil penalty in an amount up to $40,000, may 
  5.12  be dissolved ~~as well as fined~~.  If a foreign or nonresident 
  5.13  corporation ~~is convicted~~ intentionally makes a prohibited 
  5.14  contribution in excess of $5,000 or a prohibited contribution of 
  5.15  money, in addition to being ~~fined~~ subject to a civil penalty in 
  5.16  an amount up to $40,000, its right to do business in this state 
  5.17  may be declared forfeited.  
  5.18     Sec. 10.  Minnesota Statutes 2002, section 211B.15, is 
  5.19  amended by adding a subdivision to read: 
  5.20     Subd. 10a.  [COMMUNICATIONS.] It is not a violation of this 
  5.21  section for a corporation to communicate in writing directly 
  5.22  with members, employees, and shareholders of the corporation and 
  5.23  their families, in support of or in opposition to the election 
  5.24  of particular candidates. 
  5.25     Sec. 11.  Minnesota Statutes 2002, section 211B.15, 
  5.26  subdivision 11, is amended to read: 
  5.27     Subd. 11.  [~~MESSAGES~~ CAMPAIGN MATERIALS ON PREMISES.] It is 
  5.28  not a violation of this section for a corporation ~~selling~~ 
  5.29  ~~products or services to the public to post on its public~~ 
  5.30  ~~premises messages that promote participation in precinct~~ 
  5.31  ~~caucuses, voter registration, or elections if the messages are~~ 
  5.32  ~~not controlled by or operated for the advantage of a candidate,~~ 
  5.33  ~~political party, or committee~~ to display campaign materials on 
  5.34  its premises. 
  5.35     Sec. 12.  Minnesota Statutes 2002, section 211B.15, is 
  5.36  amended by adding a subdivision to read: 
  6.1      Subd. 11a.  [CANDIDATE RECRUITMENT AND TRAINING.] (a) It is 
  6.2   not a violation of this section for a corporation to provide 
  6.3   meeting facilities, presentations, informational materials, or 
  6.4   other resources for the purposes of encouraging individuals to 
  6.5   seek political office or educating individuals about the laws 
  6.6   governing elections, campaign finance, and disclosure. 
  6.7      (b) An individual who attends a presentation or receives 
  6.8   informational material described in paragraph (a) before filing 
  6.9   an affidavit of candidacy for legislative or state 
  6.10  constitutional office has not made a campaign expenditure within 
  6.11  the meaning of section 10A.01, subdivision 9, and has not 
  6.12  received a contribution within the meaning of section 10A.01, 
  6.13  subdivision 11. 
  6.14     Sec. 13.  Minnesota Statutes 2002, section 211B.15, 
  6.15  subdivision 12, is amended to read: 
  6.16     Subd. 12.  [REPORTS REQUIRED.] The total amount of an 
  6.17  expenditure or contribution for any one project permitted by 
  6.18  subdivisions 9 and 11 that is more than $200, together with the 
  6.19  date, purpose, and the names and addresses of the persons 
  6.20  receiving the contribution or expenditures, must be reported to 
  6.21  the ~~secretary of state~~ board.  The reports must be filed on 
  6.22  forms provided by the ~~secretary of state~~ board on the dates 
  6.23  required ~~for committees~~ under section ~~211A.02~~ 10A.20.  ~~Failure~~ 
  6.24  ~~to file is a misdemeanor.~~ 
  6.25     Sec. 14.  Minnesota Statutes 2002, section 211B.15, 
  6.26  subdivision 16, is amended to read: 
  6.27     Subd. 16.  [~~EMPLOYEE~~ POLITICAL FUND SOLICITATION.] (a) Any 
  6.28  solicitation of political contributions by an employee must be 
  6.29  in writing, informational and nonpartisan in nature, and not 
  6.30  promotional for any particular candidate or group of 
  6.31  candidates.  The solicitation must consist only of a general 
  6.32  request on behalf of an independent political committee (conduit 
  6.33  fund) and must state that there is no minimum contribution, that 
  6.34  a contribution or lack thereof will in no way impact the 
  6.35  employee's employment, that the employee must direct the 
  6.36  contribution to candidates of the employee's choice, and that 
  7.1   any response by the employee shall remain confidential and shall 
  7.2   not be directed to the employee's supervisors or managers.  
  7.3   Questions from an employee regarding a solicitation may be 
  7.4   answered orally or in writing consistent with the above 
  7.5   requirements.  Nothing in this subdivision authorizes a 
  7.6   corporate donation of an employee's time prohibited under 
  7.7   subdivision 2.  
  7.8      (b) A candidate may appear on the premises of a corporation 
  7.9   and may solicit contributions to the candidate or to a political 
  7.10  party from members, employees, or shareholders of the 
  7.11  corporation and their families. 
  7.12     Sec. 15.  Minnesota Statutes 2002, section 211B.15, 
  7.13  subdivision 17, is amended to read: 
  7.14     Subd. 17.  [~~NONPROFIT CORPORATION POLITICAL~~ 
  7.15  ~~ACTIVITY~~ ADMINISTRATIVE SUPPORT.] It is not a violation of this 
  7.16  section for a ~~nonprofit~~ corporation to provide administrative 
  7.17  assistance to ~~one~~ political ~~committee~~ committees or political 
  7.18  ~~fund that is associated with the nonprofit corporation and~~ funds 
  7.19  registered with the campaign finance and public disclosure board 
  7.20  under section 10A.14.  ~~Such~~ Administrative assistance ~~must be~~ 
  7.21  ~~limited to~~ includes accounting, clerical or legal services, bank 
  7.22  charges, utilities, office space, ~~and~~ supplies, and the expenses 
  7.23  of soliciting donations to the political committees or political 
  7.24  funds.  The records of the political ~~committee~~ committees or 
  7.25  political ~~fund~~ funds may be kept on the premises of the 
  7.26  ~~nonprofit~~ corporation. 
  7.27     ~~The administrative assistance provided by the nonprofit~~ 
  7.28  ~~corporation to the political committee or political fund is~~ 
  7.29  ~~limited annually to the lesser of $5,000 or 7-1/2 percent of the~~ 
  7.30  ~~expenditures of the political committee or political fund.~~ 
  7.31     Sec. 16.  Minnesota Statutes 2002, section 211B.15, is 
  7.32  amended by adding a subdivision to read: 
  7.33     Subd. 18.  [DEFENSE COSTS FOR FALSE COMPLAINTS.] A person 
  7.34  who intentionally makes a false or bad faith complaint or report 
  7.35  of an alleged violation of this section is liable for the costs 
  7.36  of defense of a party against whom the complaint is made. 
  8.1      Sec. 17.  [211B.155] [LABOR ORGANIZATION DUES CHECKOFF.] 
  8.2      A labor organization that receives dues, fees, or payments 
  8.3   in lieu of organization dues or fees and that uses any part of 
  8.4   the dues, fees, or payments for political purposes not related 
  8.5   to collective bargaining must annually give written notice to 
  8.6   employees as provided by this section.  Employees must be 
  8.7   notified in writing of the opportunity to indicate whether they 
  8.8   agree to the use of part of the dues, fees, or payments for 
  8.9   political purposes not related to collective bargaining.  The 
  8.10  organization dues, fees, or payments of employees who do not 
  8.11  agree to such use must be reduced accordingly. 
  8.12     Sec. 18.  [REVISOR'S INSTRUCTION.] 
  8.13     The revisor of statutes must renumber Minnesota Statutes, 
  8.14  section 211B.15, as Minnesota Statutes, section 10A.337, and 
  8.15  correct cross-references to the section throughout Minnesota 
  8.16  Statutes.