1.1                          A bill for an act 
  1.2             relating to ethics in government; campaign finance; 
  1.3             prohibiting a candidate who accepts a public subsidy 
  1.4             from accepting contributions from a political 
  1.5             committee or political fund; modifying the allocation 
  1.6             of state elections campaign fund money for candidates; 
  1.7             modifying the income tax checkoff for campaign 
  1.8             finance; amending Minnesota Statutes 1999 Supplement, 
  1.9             sections 10A.27, subdivision 11; 10A.31, subdivisions 
  1.10            3, 4, 5, 7, 10, and 10b; 10A.315; 10A.321, subdivision 
  1.11            1; 10A.323; repealing Minnesota Statutes 1999 
  1.12            Supplement, sections 10A.31, subdivisions 3a, 5a, 6, 
  1.13            and 6a. 
  1.14  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.15     Section 1.  Minnesota Statutes 1999 Supplement, section 
  1.16  10A.27, subdivision 11, is amended to read: 
  1.17     Subd. 11.  [CONTRIBUTIONS FROM CERTAIN TYPES OF 
  1.18  CONTRIBUTORS.] (a) A candidate who does not accept a public 
  1.19  subsidy must not permit the candidate's principal campaign 
  1.20  committee to accept a contribution from a political committee, 
  1.21  political fund, lobbyist, or large contributor, if the 
  1.22  contribution will cause the aggregate contributions from those 
  1.23  types of contributors to exceed an amount equal to 20 percent of 
  1.24  the expenditure limits for the office sought by the candidate.  
  1.25     (b) A candidate who accepts a public subsidy must not 
  1.26  permit the candidate's principal campaign committee to accept a 
  1.27  contribution from: 
  1.28     (1) a political committee or political fund; or 
  1.29     (2) a lobbyist or large contributor, if the contribution 
  2.1   would cause the aggregate contributions from lobbyists or large 
  2.2   contributors to exceed an amount equal to ten percent of the 
  2.3   expenditure limits for the office sought by the candidate. 
  2.4      (c) For purposes of this subdivision, "large contributor" 
  2.5   means an individual, other than the candidate, who contributes 
  2.6   an amount that is more than $100 and more than one-half the 
  2.7   amount an individual may contribute. 
  2.8      Sec. 2.  Minnesota Statutes 1999 Supplement, section 
  2.9   10A.31, subdivision 3, is amended to read: 
  2.10     Subd. 3.  [FORM.] The commissioner of revenue must provide 
  2.11  on the first page of the income tax form and the renter and 
  2.12  homeowner property tax refund return a space for the individual 
  2.13  to indicate a wish to pay $5 ($10 if filing a joint return) from 
  2.14  the general fund of the state to finance election campaigns and 
  2.15  a space for the individual to indicate a wish not to allocate 
  2.16  any money for that purpose.  The form must also contain language 
  2.17  prepared by the commissioner that permits the individual to 
  2.18  direct the state to pay the $5 (or $10 if filing a joint return) 
  2.19  to:  (1) one of the major political parties; (2) any minor 
  2.20  political party that qualifies under subdivision 3a; or (3) all 
  2.21  qualifying candidates as provided by subdivision 7.  The renter 
  2.22  and homeowner property tax refund return must include 
  2.23  instructions that the individual filing the return may designate 
  2.24  $5 on the return only if the individual has not designated $5 on 
  2.25  the income tax return. 
  2.26     Sec. 3.  Minnesota Statutes 1999 Supplement, section 
  2.27  10A.31, subdivision 4, is amended to read: 
  2.28     Subd. 4.  [APPROPRIATION.] (a) The amounts designated by 
  2.29  individuals for the state elections campaign fund, less three 
  2.30  percent, are appropriated from the general fund, must be 
  2.31  transferred and credited to the appropriate account in the state 
  2.32  elections campaign fund, and are annually appropriated for 
  2.33  distribution as set forth in subdivisions 5, 5a, 6, and 7.  The 
  2.34  remaining three percent must be kept in the general fund for 
  2.35  administrative costs.  
  2.36     (b) In addition to the amounts in paragraph (a), $1,500,000 
  3.1   for each general election is appropriated from the general fund 
  3.2   for transfer to the general account of the state elections 
  3.3   campaign fund. 
  3.4      Sec. 4.  Minnesota Statutes 1999 Supplement, section 
  3.5   10A.31, subdivision 5, is amended to read: 
  3.6      Subd. 5.  [ALLOCATION.] (a)  [GENERAL ACCOUNT.] In each 
  3.7   calendar year the money in the general account state elections 
  3.8   campaign fund must be allocated to candidates as follows: 
  3.9      (1) 21 percent for the offices of governor and lieutenant 
  3.10  governor together; 
  3.11     (2) 4.2 percent for the office of attorney general; 
  3.12     (3) 2.4 percent each for the offices of secretary of state 
  3.13  and state auditor; 
  3.14     (4) in each calendar year during the period in which state 
  3.15  senators serve a four-year term, 23-1/3 percent for the office 
  3.16  of state senator, and 46-2/3 percent for the office of state 
  3.17  representative; and 
  3.18     (5) in each calendar year during the period in which state 
  3.19  senators serve a two-year term, 35 percent each for the offices 
  3.20  of state senator and state representative. 
  3.21     (b)  [PARTY ACCOUNT.] In each calendar year the money in 
  3.22  each party account must be allocated as follows: 
  3.23     (1) 14 percent for the offices of governor and lieutenant 
  3.24  governor together; 
  3.25     (2) 2.8 percent for the office of attorney general; 
  3.26     (3) 1.6 percent each for the offices of secretary of state 
  3.27  and state auditor; 
  3.28     (4) in each calendar year during the period in which state 
  3.29  senators serve a four-year term, 23-1/3 percent for the office 
  3.30  of state senator, and 46-2/3 percent for the office of state 
  3.31  representative; 
  3.32     (5) in each calendar year during the period in which state 
  3.33  senators serve a two-year term, 35 percent each for the offices 
  3.34  of state senator and state representative; and 
  3.35     (6) ten percent for the state committee of a political 
  3.36  party. 
  4.1      Money allocated to each state committee under clause (6) 
  4.2   must be deposited in a separate account and must be spent for 
  4.3   only those items enumerated in section 10A.275.  Money allocated 
  4.4   to a state committee under clause (6) must be paid to the 
  4.5   committee by the board as it is received in the account on a 
  4.6   monthly basis, with payment on the 15th day of the calendar 
  4.7   month following the month in which the returns were processed by 
  4.8   the department of revenue, provided that these distributions 
  4.9   would be equal to 90 percent of the amount of money indicated in 
  4.10  the department of revenue's weekly unedited reports of income 
  4.11  tax returns and property tax refund returns processed in the 
  4.12  month, as notified by the department of revenue to the board.  
  4.13  The amounts paid to each state committee are subject to biennial 
  4.14  adjustment and settlement at the time of each certification 
  4.15  required of the commissioner of revenue under subdivisions 7 and 
  4.16  10.  If the total amount of payments received by a state 
  4.17  committee for the period reflected on a certification by the 
  4.18  department of revenue is different from the amount that should 
  4.19  have been received during the period according to the 
  4.20  certification, each subsequent monthly payment must be increased 
  4.21  or decreased to the fullest extent possible until the amount of 
  4.22  the overpayment is recovered or the underpayment is distributed. 
  4.23     Sec. 5.  Minnesota Statutes 1999 Supplement, section 
  4.24  10A.31, subdivision 7, is amended to read: 
  4.25     Subd. 7.  [DISTRIBUTION OF GENERAL ACCOUNT.] (a) Within two 
  4.26  weeks As soon as the board has obtained from the secretary of 
  4.27  state the results of the primary, but in no event later than one 
  4.28  week after certification by the state canvassing board of the 
  4.29  results of the general election primary, the board must 
  4.30  distribute the available money in the general account state 
  4.31  elections campaign fund, as certified by the commissioner of 
  4.32  revenue on November September 1 and according to allocations set 
  4.33  forth in subdivision 5, in equal amounts to all major party 
  4.34  candidates who: 
  4.35     (1) have signed a spending limit agreement under section 
  4.36  10A.322; 
  5.1      (2) have filed the affidavit of contributions required by 
  5.2   section 10A.323; and 
  5.3      (3) were opposed in either the primary election or the 
  5.4   general election; and 
  5.5      (4) are either a candidate for statewide office who 
  5.6   received at least five percent of the votes cast in the general 
  5.7   election for that office or a candidate for legislative office 
  5.8   who received at least ten percent of the votes cast in the 
  5.9   general election for that seat. 
  5.10     (b) The public subsidy under this subdivision may not be 
  5.11  paid in an amount that would cause the sum of the public subsidy 
  5.12  paid from the party account plus the public subsidy paid from 
  5.13  the general account to exceed 50 percent of the expenditure 
  5.14  limit for the candidate or 50 percent of the expenditure limit 
  5.15  that would have applied to the candidate if the candidate had 
  5.16  not been freed from expenditure limits under section 10A.25, 
  5.17  subdivision 10.  Money from the general account not paid to a 
  5.18  candidate because of the 50 percent limit must be distributed 
  5.19  equally among all other qualifying candidates for the same 
  5.20  office until all have reached the 50 percent limit or the 
  5.21  balance in the general account state elections campaign fund is 
  5.22  exhausted.  
  5.23     Sec. 6.  Minnesota Statutes 1999 Supplement, section 
  5.24  10A.31, subdivision 10, is amended to read: 
  5.25     Subd. 10.  [DECEMBER DISTRIBUTION.] In the event that on 
  5.26  the date of either certification by the commissioner of revenue 
  5.27  as provided in subdivision 6 or 7, less than 98 percent of the 
  5.28  tax returns have been processed, the commissioner of revenue 
  5.29  must certify to the board by December 1 the amount accumulated 
  5.30  in each account the state elections campaign fund since the 
  5.31  previous certification.  By December 15, the board must 
  5.32  distribute to each candidate according to the allocations 
  5.33  in subdivisions subdivision 5 and 5a the amounts to which the 
  5.34  candidates are entitled.  
  5.35     Sec. 7.  Minnesota Statutes 1999 Supplement, section 
  5.36  10A.31, subdivision 10b, is amended to read: 
  6.1      Subd. 10b.  [REMAINDER.] Money accumulated after the final 
  6.2   certification must be kept in the respective accounts state 
  6.3   elections campaign fund for distribution in the next general 
  6.4   election year. 
  6.5      Sec. 8.  Minnesota Statutes 1999 Supplement, section 
  6.6   10A.315, is amended to read: 
  6.7      10A.315 [SPECIAL ELECTION SUBSIDY.] 
  6.8      (a) Each eligible candidate for a legislative office in a 
  6.9   special election must be paid a public subsidy equal to the sum 
  6.10  of: 
  6.11     (1) the party account money at the last general election 
  6.12  for the candidate's party for the office the candidate is 
  6.13  seeking; and 
  6.14     (2) the general account money paid from the state elections 
  6.15  campaign fund to a candidate for the same office at the last 
  6.16  general election.  
  6.17     (b) A candidate who wishes to receive this public subsidy 
  6.18  must submit a signed agreement under section 10A.322 to the 
  6.19  board and must meet the contribution requirements of section 
  6.20  10A.323.  The special election subsidy must be distributed in 
  6.21  the same manner as money in the party and general accounts is 
  6.22  distributed to legislative candidates in a general election. 
  6.23     (c) The amount necessary to make the payments required by 
  6.24  this section is appropriated from the general fund to the board. 
  6.25     Sec. 9.  Minnesota Statutes 1999 Supplement, section 
  6.26  10A.321, subdivision 1, is amended to read: 
  6.27     Subdivision 1.  [CALCULATION AND CERTIFICATION OF 
  6.28  ESTIMATES.] The commissioner of revenue must calculate and 
  6.29  certify to the board before July 1 in each election year an 
  6.30  estimate of the total amount in the state general account of the 
  6.31  state elections campaign fund and the amount of money each 
  6.32  candidate who qualifies, as provided in section 10A.31, 
  6.33  subdivisions 6 and 7, may receive from the candidate's party 
  6.34  account in the state elections campaign fund.  This estimate 
  6.35  must be based upon the allocations and formulas in section 
  6.36  10A.31, subdivisions subdivision 5 and 5a, any necessary vote 
  7.1   totals provided by the secretary of state to apply the formulas 
  7.2   in section 10A.31, subdivisions 5, and 5a, and the amount of 
  7.3   money expected to be available after 100 percent of the tax 
  7.4   returns have been processed.  
  7.5      Sec. 10.  Minnesota Statutes 1999 Supplement, section 
  7.6   10A.323, is amended to read: 
  7.7      10A.323 [AFFIDAVIT OF CONTRIBUTIONS.] 
  7.8      In addition to the requirements of section 10A.322, to be 
  7.9   eligible to receive a public subsidy under section 10A.31 a 
  7.10  candidate or the candidate's treasurer must file an affidavit 
  7.11  with the board stating that during that calendar year the 
  7.12  candidate has accumulated contributions from persons eligible to 
  7.13  vote in this state in at least the amount indicated for the 
  7.14  office sought, counting only the first $50 received from each 
  7.15  contributor: 
  7.16     (1) candidates for governor and lieutenant governor running 
  7.17  together, $35,000; 
  7.18     (2) candidates for attorney general, $15,000; 
  7.19     (3) candidates for secretary of state and state auditor, 
  7.20  separately, $6,000; 
  7.21     (4) candidates for the senate, $3,000 $4,000; and 
  7.22     (5) candidates for the house of 
  7.23  representatives, $1,500 $2,000. 
  7.24     The affidavit must state the total amount of contributions 
  7.25  that have been received from persons eligible to vote in this 
  7.26  state, disregarding the portion of any contribution in excess of 
  7.27  $50.  
  7.28     The candidate or the candidate's treasurer must submit the 
  7.29  affidavit required by this section to the board in writing by 
  7.30  September 1 of the general election year to receive the payment 
  7.31  made following the primary election and by November 1 to receive 
  7.32  the payment made following the general election.  
  7.33     A candidate for a vacancy to be filled at a special 
  7.34  election for which the filing period does not coincide with the 
  7.35  filing period for the general election must submit the affidavit 
  7.36  required by this section to the board within five days after 
  8.1   filing the affidavit of candidacy. 
  8.2      Sec. 11.  [REPEALER.] 
  8.3      Minnesota Statutes 1999 Supplement, section 10A.31, 
  8.4   subdivisions 3a, 5a, 6, and 6a are repealed.