1.1                          A bill for an act 
  1.2             relating to campaign finance; increasing the public's 
  1.3             right to know; modifying definition of independent 
  1.4             expenditures; requiring full disclosure of the total 
  1.5             costs of lobbying; modifying notice required of 
  1.6             independent expenditures; requiring reports; amending 
  1.7             Minnesota Statutes 1996, sections 10A.01, subdivision 
  1.8             10b; 10A.04, subdivisions 4, 5, and 6; and 10A.20, 
  1.9             subdivision 6b; repealing Minnesota Statutes 1996, 
  1.10            section 10A.04, subdivision 4a. 
  1.11  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.12     Section 1.  Minnesota Statutes 1996, section 10A.01, 
  1.13  subdivision 10b, is amended to read: 
  1.14     Subd. 10b.  [INDEPENDENT EXPENDITURE.] "Independent 
  1.15  expenditure" means an expenditure expressly advocating the 
  1.16  election or defeat of a clearly identified candidate, or an 
  1.17  expenditure impliedly advocating the election or defeat of a 
  1.18  clearly identified candidate who has filed for office, which 
  1.19  expenditure is made without the express or implied consent, 
  1.20  authorization, or cooperation of, and not in concert with or at 
  1.21  the request or suggestion of, any candidate or any candidate's 
  1.22  principal campaign committee or agent.  An independent 
  1.23  expenditure is not a contribution to that candidate.  An 
  1.24  expenditure by a political party or political party unit, as 
  1.25  defined in section 10A.275, subdivision 3, in a race where the 
  1.26  political party has a candidate on the ballot is not an 
  1.27  independent expenditure. 
  1.28     Sec. 2.  Minnesota Statutes 1996, section 10A.04, 
  2.1   subdivision 4, is amended to read: 
  2.2      Subd. 4.  [CONTENT.] (a) The report shall include such 
  2.3   information as the board may require from the registration form 
  2.4   and the information required by this subdivision for the 
  2.5   reporting period. 
  2.6      (b) The report must contain: 
  2.7      (1) a list of the issues upon which the lobbyist lobbied on 
  2.8   behalf of each principal; and 
  2.9      (2) a list of employees of the lobbyist who acted on behalf 
  2.10  of each principal. 
  2.11     (c) Each lobbyist shall report the total amount of all 
  2.12  income from the principal for lobbying activities on behalf of 
  2.13  the principal, including amounts paid to cover the lobbyist's 
  2.14  salary and administrative expenses.  The report must include any 
  2.15  payments to the lobbyist by any other person for lobbying 
  2.16  activities on behalf of the principal. 
  2.17     (d) Each lobbyist shall report the lobbyist's total 
  2.18  disbursements on lobbying, separately listing lobbying to 
  2.19  influence legislative action, lobbying to influence 
  2.20  administrative action, and lobbying to influence the official 
  2.21  actions of a metropolitan governmental unit, and a breakdown of 
  2.22  disbursements for each of those kinds of lobbying into 
  2.23  categories specified by the board, including but not limited to 
  2.24  the cost of publication and distribution of each publication 
  2.25  used in lobbying; other printing; media, including the cost of 
  2.26  production; postage; travel; fees, including allowances; 
  2.27  entertainment; telephone and telegraph; and other expenses. 
  2.28     ~~(c)~~ (e) Each lobbyist shall report the amount and nature of 
  2.29  each honorarium, gift, loan, item ~~or~~, benefit, ~~excluding~~ 
  2.30  ~~contributions~~ or contribution to a candidate, equal in value to 
  2.31  $5 or more, given or paid to any ~~public or local~~ official, as 
  2.32  defined in section 10A.071, subdivision 1, by the lobbyist ~~or~~ 
  2.33  ~~any employer or any employee of the lobbyist~~.  The list shall 
  2.34  include the name and address of each ~~public or local~~ official to 
  2.35  whom the honorarium, gift, loan, item ~~or~~, benefit, or 
  2.36  contribution was given or paid and the date it was given or 
  3.1   paid.  A lobbyist need report only the aggregate amount and 
  3.2   nature of food or beverages given or made available to all 
  3.3   members of the legislature or a house of the legislature or to 
  3.4   all members of a local legislative body, along with the name of 
  3.5   the legislative body and the date it was given or made available.
  3.6      ~~(d)~~ (f) Each lobbyist shall report each original source of 
  3.7   funds in excess of $500 in any year used for the purpose of 
  3.8   lobbying to influence legislative action, each such source of 
  3.9   funds used to influence administrative action, and each such 
  3.10  source of funds used to influence the official action of 
  3.11  metropolitan governmental units.  The list shall include the 
  3.12  name, address and employer, or, if self-employed, the occupation 
  3.13  and principal place of business, of each payer of funds in 
  3.14  excess of $500. 
  3.15     (g) Each lobbyist shall report the amount and date of each 
  3.16  contribution given by the lobbyist to a party organization 
  3.17  within a house of the legislature. 
  3.18     Sec. 3.  Minnesota Statutes 1996, section 10A.04, 
  3.19  subdivision 5, is amended to read: 
  3.20     Subd. 5.  [FAILURE TO FILE.] The board shall notify by 
  3.21  certified mail or personal service any lobbyist or principal who 
  3.22  fails after seven days after a filing date imposed by this 
  3.23  section to file a report ~~or statement~~ required by this section.  
  3.24  If a lobbyist or principal fails to file a report within seven 
  3.25  days after receiving this notice, the board may impose a late 
  3.26  filing fee of $5 per day, not to exceed $100, commencing with 
  3.27  the eighth day after receiving notice.  The board shall further 
  3.28  notify by certified mail or personal service any lobbyist or 
  3.29  principal who fails to file a report within 21 days after 
  3.30  receiving a first notice that the lobbyist or principal may be 
  3.31  subject to a criminal penalty for failure to file the report.  A 
  3.32  lobbyist or principal who knowingly fails to file such a report 
  3.33  ~~or statement~~ within seven days after receiving a second notice 
  3.34  from the board is guilty of a misdemeanor. 
  3.35     Sec. 4.  Minnesota Statutes 1996, section 10A.04, 
  3.36  subdivision 6, is amended to read: 
  4.1      Subd. 6.  [~~LOBBYIST AND~~ PRINCIPAL REPORTS.] (a) ~~Each~~ A 
  4.2   principal shall report to the board as required in this 
  4.3   subdivision by March 15 for the preceding calendar year. 
  4.4      (b) ~~Each~~ The principal shall report ~~which of the following~~ 
  4.5   ~~categories includes~~ the total amount~~, rounded to the nearest~~ 
  4.6   ~~dollar,~~ spent by the principal during the preceding calendar 
  4.7   year to influence legislative action, the total amount spent by 
  4.8   the principal during the preceding calendar year to influence 
  4.9   administrative action, and the total amount spent by the 
  4.10  principal during the preceding calendar year to influence the 
  4.11  official action of metropolitan governmental units~~:~~. 
  4.12     ~~(1) $501 to $50,000;~~ 
  4.13     ~~(2) $50,001 to $150,000; or~~ 
  4.14     ~~(3) $150,001 to $250,000.~~ 
  4.15     (c) ~~Beyond $250,000, each additional $250,000 constitutes~~ 
  4.16  ~~an additional category, and each principal shall report which of~~ 
  4.17  ~~the categories includes the total amount spent by the principal~~ 
  4.18  ~~for the purposes provided in this subdivision.~~ 
  4.19     ~~(d)~~ The principal shall report under this subdivision a 
  4.20  total amount that includes: 
  4.21     (1) all direct payments by the principal to lobbyists in 
  4.22  Minnesota; 
  4.23     (2) all expenditures for advertising, mailing, research, 
  4.24  analysis, compilation and dissemination of information, and 
  4.25  public relations campaigns related to legislative action, 
  4.26  administrative action, or the official action of metropolitan 
  4.27  governmental units in Minnesota; and 
  4.28     (3) all salaries and administrative expenses attributable 
  4.29  to activities of the principal or a lobbyist engaged by the 
  4.30  principal relating to efforts on behalf of the principal to 
  4.31  influence legislative action, administrative action, or the 
  4.32  official action of metropolitan governmental units in Minnesota. 
  4.33     Sec. 5.  Minnesota Statutes 1996, section 10A.20, 
  4.34  subdivision 6b, is amended to read: 
  4.35     Subd. 6b.  [INDEPENDENT EXPENDITURES; NOTICE.] (a) The 
  4.36  notice in this subdivision applies only to expenditures made in 
  5.1   a general election year after the deadline for the report due 15 
  5.2   days before the primary election and made before the general 
  5.3   election. 
  5.4      (b) Within ~~24~~ 48 hours after an individual, political 
  5.5   committee, or political fund makes ~~or becomes obligated by oral~~ 
  5.6   ~~or written agreement to make~~ an independent expenditure in 
  5.7   support of a candidate in excess of ~~$100, other than an~~ 
  5.8   ~~expenditure by an association targeted to inform solely its own~~ 
  5.9   ~~dues-paying members of the association's position on a candidate~~ 
  5.10  the amount that may be contributed to the candidate, or in 
  5.11  opposition to a candidate in excess of the amount that may be 
  5.12  contributed to the candidate's opponent, the individual, 
  5.13  political committee, or political fund shall file with the board 
  5.14  ~~an affidavit notifying the board~~ a notice of ~~the intent to make~~ 
  5.15  the independent expenditure and serve a copy of the ~~affidavit~~ 
  5.16  notice on each candidate in the affected race and on the 
  5.17  treasurer of the candidate's principal campaign committee.  
  5.18  The ~~affidavit~~ notice must contain the information with respect 
  5.19  to the expenditure that is required to be reported under 
  5.20  subdivision 3, paragraph (g)~~; except that if an expenditure is~~ 
  5.21  ~~reported before it is made, the notice must include a reasonable~~ 
  5.22  ~~estimate of the anticipated amount~~.  Each new expenditure 
  5.23  requires a new notice. 
  5.24     ~~(b)~~ (c) A notice is not required for an expenditure by an 
  5.25  association targeted to inform solely its own dues-paying 
  5.26  members of the association's position on a candidate.  
  5.27     (d) An individual or the treasurer of a political committee 
  5.28  or political fund who fails to give notice as required by this 
  5.29  subdivision, or who files a false ~~affidavit of~~ notice, is guilty 
  5.30  of a gross misdemeanor and is subject to a civil fine of up to 
  5.31  four times the amount of the independent expenditure stated in 
  5.32  the notice or of which notice was required, whichever is greater.
  5.33     Sec. 6.  [REPEALER.] 
  5.34     Minnesota Statutes 1996, section 10A.04, subdivision 4a, is 
  5.35  repealed. 
  5.36     Sec. 7.  [EFFECTIVE DATE.] 
  6.1      This act is effective July 1, 1998.