1.1                          A bill for an act 
  1.2             relating to elections; providing for "clean money" 
  1.3             campaigns funded without special interest money; 
  1.4             expanding certain definitions; requiring certain 
  1.5             campaign finance reports to be filed and published 
  1.6             electronically; requiring notice of independent 
  1.7             expenditures; requiring reports of excess spending by 
  1.8             candidates who do not agree to limit spending; 
  1.9             reducing certain contribution limits and spending 
  1.10            limits; limiting independent expenditures by political 
  1.11            parties on behalf of their own candidates as a 
  1.12            condition of receiving a public subsidy; imposing 
  1.13            campaign contribution and spending limits on political 
  1.14            party caucuses as a condition of receiving a public 
  1.15            subsidy; limiting multicandidate expenditures by 
  1.16            political parties; increasing public subsidies for 
  1.17            candidates who agree to lower contribution limits; 
  1.18            increasing spending limits and public subsidies to 
  1.19            respond to independent expenditures and excess 
  1.20            spending by nonparticipating candidates; repealing the 
  1.21            income tax checkoff for election campaigns; increasing 
  1.22            the maximum political contribution refund from $50 to 
  1.23            $100; imposing criminal penalties; appropriating 
  1.24            money; amending Minnesota Statutes 2002, sections 
  1.25            10A.01, subdivisions 9, 18, 21; 10A.02, subdivision 
  1.26            11a; 10A.14, subdivision 2; 10A.20, subdivisions 2, 
  1.27            6b, by adding subdivisions; 10A.25, subdivisions 1, 2, 
  1.28            2a, by adding subdivisions; 10A.257, subdivision 1; 
  1.29            10A.27, subdivisions 1, 11, by adding subdivisions; 
  1.30            10A.275, subdivision 1; 10A.28, subdivisions 1, 2; 
  1.31            10A.315; 10A.322; 200.02, by adding a subdivision; 
  1.32            290.06, subdivision 23; proposing coding for new law 
  1.33            in Minnesota Statutes, chapter 10A; repealing 
  1.34            Minnesota Statutes 2002, sections 10A.25, subdivision 
  1.35            6; 10A.31. 
  1.36  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.37     Section 1.  [LEGISLATIVE FINDINGS; PURPOSE.] 
  1.38     Subdivision 1.  [LEGISLATIVE FINDINGS.] The legislature 
  1.39  finds that while this state has a system of partial public 
  1.40  financing of campaigns, our current system still encourages 
  2.1   large amounts of private money to be used to finance campaigns.  
  2.2   This private money undermines democracy in the following ways:  
  2.3      (a) It stifles the First Amendment, which was designed "to 
  2.4   secure the widest possible dissemination of information from 
  2.5   diverse and antagonistic sources," and "to assure the unfettered 
  2.6   interchange of ideas for the bringing about of political and 
  2.7   social changes desired by the people."  Instead, heavy funding 
  2.8   of certain candidates and interests discourages other candidates 
  2.9   from running and prevents many perspectives from receiving any 
  2.10  dissemination whatsoever.  In addition, after a certain point, 
  2.11  more spending does not create more speech but has the opposite 
  2.12  impact, overwhelming the public and causing them to tune out 
  2.13  speech from any candidate. 
  2.14     (b) It undermines the First Amendment right of voters to 
  2.15  hear speech from all candidates and all perspectives and 
  2.16  undermines the core First Amendment value of open and robust 
  2.17  debate in the political process. 
  2.18     (c) It inhibits communication with the electorate by 
  2.19  candidates without access to large sums of campaign money. 
  2.20     (d) It burdens elected officials and candidates with 
  2.21  endless hours of fundraising, thus decreasing the time available 
  2.22  to carry out their public responsibilities. 
  2.23     (e) It discourages people from participating in the 
  2.24  political process.  A 1998 poll conducted by St. Cloud State 
  2.25  University found that, because of their belief that contributors 
  2.26  have more influence than noncontributors do, one-third of 
  2.27  respondents are "less likely to vote or participate in politics."
  2.28  Over half of those who said that they did not vote in the 1996 
  2.29  election said they were less likely to vote or participate 
  2.30  because of this belief. 
  2.31     (f) It violates the rights of citizens to equal and 
  2.32  meaningful participation in the democratic process. 
  2.33     (g) It creates a public perception of corruption and 
  2.34  undermines public confidence in the democratic process and 
  2.35  democratic institutions.  This perception is held by almost nine 
  2.36  out of ten Minnesotans.  The 1998 St. Cloud State University 
  3.1   poll showed that 88 percent of all Minnesotans believe elected 
  3.2   officials are more responsive to contributors than to voters who 
  3.3   do not contribute. 
  3.4      (h) It not only creates a perception of corruption, but 
  3.5   actually encourages elected officials to take money from private 
  3.6   interests that are directly affected by governmental actions. 
  3.7      (i) It diminishes the perceived, and perhaps the real, 
  3.8   accountability of elected officials to their constituents by 
  3.9   giving them incentives to be accountable to major campaign 
  3.10  contributors instead. 
  3.11     (j) It undermines the integrity of the election process by 
  3.12  making it difficult for qualified candidates without access to 
  3.13  large contributors or personal fortunes to mount competitive 
  3.14  campaigns and discourages them from running. 
  3.15     (k) It undermines the integrity of the election process by 
  3.16  placing challengers at a disadvantage, because large campaign 
  3.17  contributors tend to give their money to incumbents, thus 
  3.18  causing elections to be less competitive. 
  3.19     (l) It costs taxpayers millions of dollars for the 
  3.20  legislative and regulatory decisions made by elected officials 
  3.21  on behalf of major campaign contributors. 
  3.22     The legislature finds each of these defects on its own has 
  3.23  a corrosive impact on our democracy either by corrupting the 
  3.24  political process or by creating the appearance of corruption.  
  3.25  Accordingly, the state has a compelling interest in addressing 
  3.26  them through this act. 
  3.27     Subd. 2.  [PURPOSE.] This act is intended to enable 
  3.28  campaigns to be conducted without special interest money and to 
  3.29  restore the First Amendment rights of nonwealthy candidates by 
  3.30  enabling them to disseminate their views without being drowned 
  3.31  out by heavily funded independent expenditures or ads by 
  3.32  opposing campaigns that they cannot respond to for lack of money.
  3.33     This act is designed to create benefits for participating 
  3.34  candidates and political parties to compensate for the 
  3.35  restrictions applied to them and to further the compelling state 
  3.36  interest of encouraging participation in this system of 
  4.1   financing campaigns without special interest money. 
  4.2      Sec. 2.  Minnesota Statutes 2002, section 10A.01, 
  4.3   subdivision 9, is amended to read: 
  4.4      Subd. 9.  [CAMPAIGN EXPENDITURE.] (a) "Campaign 
  4.5   expenditure" or "expenditure" means a purchase or payment of 
  4.6   money or anything of value, or an advance of credit, made or 
  4.7   incurred for the purpose of influencing the nomination or 
  4.8   election of a candidate or for the purpose of promoting or 
  4.9   defeating a ballot question.  
  4.10     (b) "Expenditure" includes a cost incurred to design, 
  4.11  produce, or disseminate a communication if the communication 
  4.12  contains words such as "vote for," "reelect," "(name of 
  4.13  candidate) for (office)," "vote against," "defeat," or another 
  4.14  phrase or campaign slogan that in context can have no reasonable 
  4.15  meaning other than to advocate support for or opposition to the 
  4.16  nomination or election of one or more clearly identified 
  4.17  candidates. 
  4.18     (c) "Expenditure" is presumed to include a cost incurred to 
  4.19  design, produce, or disseminate a communication if the 
  4.20  communication names or depicts one or more clearly identified 
  4.21  candidates, is disseminated during the 45 days before a primary 
  4.22  election, during the 60 days before a general election, or 
  4.23  during a special election cycle until election day, and the cost 
  4.24  exceeds the following amounts for a communication naming or 
  4.25  depicting a candidate for the following offices: 
  4.26     (1) $500 for a candidate for governor, lieutenant governor, 
  4.27  attorney general, secretary of state, or state auditor; or 
  4.28     (2) $100 for a candidate for state senator or 
  4.29  representative. 
  4.30     An individual or association presumed under this paragraph 
  4.31  to have made an expenditure may rebut the presumption by a 
  4.32  written statement signed by the spender and filed with the board 
  4.33  stating that the cost was not incurred with intent to influence 
  4.34  the nomination, election, or defeat of any candidate, supported 
  4.35  by any additional evidence the spender chooses to submit.  The 
  4.36  board may consider any additional evidence it deems relevant and 
  5.1   material and must determine by a preponderance of the evidence 
  5.2   whether the cost was incurred with intent to influence the 
  5.3   nomination, election, or defeat of a candidate. 
  5.4      (d) An expenditure is considered to be made in the year in 
  5.5   which the candidate made the purchase of goods or services or 
  5.6   incurred an obligation to pay for goods or services. 
  5.7      (e) An expenditure made for the purpose of defeating a 
  5.8   candidate is considered made for the purpose of influencing the 
  5.9   nomination or election of that candidate or any opponent of that 
  5.10  candidate. 
  5.11     (f) Except as provided in clause (1), "expenditure" 
  5.12  includes the dollar value of a donation in kind. 
  5.13     "Expenditure" does not include: 
  5.14     (1) noncampaign disbursements as defined in subdivision 26; 
  5.15     (2) services provided without compensation by an individual 
  5.16  volunteering personal time on behalf of a candidate, ballot 
  5.17  question, political committee, political fund, principal 
  5.18  campaign committee, or party unit; or 
  5.19     (3) the publishing or broadcasting of news items or 
  5.20  editorial comments by the news media, if the news medium is not 
  5.21  owned by or affiliated with any candidate or principal campaign 
  5.22  committee; or 
  5.23     (4) a cost incurred by an association for a communication 
  5.24  targeted to inform solely its own dues-paying members of the 
  5.25  association's position on a candidate. 
  5.26     Sec. 3.  Minnesota Statutes 2002, section 10A.01, 
  5.27  subdivision 18, is amended to read: 
  5.28     Subd. 18.  [INDEPENDENT EXPENDITURE.] (a) "Independent 
  5.29  expenditure" means an expenditure expressly advocating the 
  5.30  election or defeat of a clearly identified candidate, if the 
  5.31  expenditure that is made without the express or implied consent, 
  5.32  authorization, or cooperation of, and not in concert with or at 
  5.33  the request or suggestion of, any candidate or any candidate's 
  5.34  principal campaign committee or agent.  An independent 
  5.35  expenditure is not a contribution to that candidate.  An 
  5.36  expenditure by a political party or political party unit in a 
  6.1   race where the political party has a candidate on the ballot is 
  6.2   not an independent expenditure. 
  6.3      (b) An expenditure is presumed to be not independent if, 
  6.4   for example: 
  6.5      (1) in the same election cycle in which the expenditure 
  6.6   occurs, the spender or the spender's agent retains the 
  6.7   professional services of an individual or entity that, in a 
  6.8   nonministerial capacity, provides or has provided 
  6.9   campaign-related service, including polling or other campaign 
  6.10  research, media consulting or production, direct mail, or 
  6.11  fundraising, to a candidate supported by the spender for 
  6.12  nomination or election to the same office as any candidate whose 
  6.13  nomination or election the expenditure is intended to influence 
  6.14  or to a political party working in coordination with the 
  6.15  supported candidate; 
  6.16     (2) the expenditure pays for a communication that 
  6.17  disseminates, in whole or in substantial part, a broadcast or 
  6.18  written, graphic, or other form of campaign material designed, 
  6.19  produced, or distributed by the candidate, the candidate's 
  6.20  principal campaign committee, or their agents; 
  6.21     (3) the expenditure is based on information about the 
  6.22  candidate's electoral campaign plans, projects, or needs that is 
  6.23  provided by the candidate, the candidate's principal campaign 
  6.24  committee, or their agents directly or indirectly to the spender 
  6.25  or the spender's agent, with an express or tacit understanding 
  6.26  that the spender is considering making the expenditure; 
  6.27     (4) before the election, the spender or the spender's agent 
  6.28  informs a candidate or the principal campaign committee or agent 
  6.29  of a candidate for the same office as a candidate clearly 
  6.30  identified in a communication paid for by the expenditure about 
  6.31  the communication's contents; timing, location, mode, or 
  6.32  frequency of dissemination; or intended audience; or 
  6.33     (5) in the same election cycle in which the expenditure 
  6.34  occurs, the spender or the spender's agent is serving or has 
  6.35  served in an executive, policymaking, fundraising, or advisory 
  6.36  position with the candidate's campaign or has participated in 
  7.1   strategic or policymaking discussions with the candidate's 
  7.2   campaign relating to the candidate's pursuit of nomination or 
  7.3   election to office and the candidate is pursuing the same office 
  7.4   as a candidate whose nomination or election the expenditure is 
  7.5   intended to influence. 
  7.6      An individual or association presumed under this paragraph 
  7.7   to have made an expenditure that was not independent may rebut 
  7.8   the presumption by a written statement signed by the spender and 
  7.9   filed with the board stating that the expenditure was made 
  7.10  without the express or implied consent, authorization, or 
  7.11  cooperation of, and not in concert with or at the request or 
  7.12  suggestion of, any candidate or any candidate's principal 
  7.13  campaign committee or agent, supported by any additional 
  7.14  evidence the spender chooses to submit.  The board may consider 
  7.15  any additional evidence it deems relevant and material and must 
  7.16  determine by a preponderance of the evidence whether the 
  7.17  expenditure was independent.  
  7.18     (c) An expenditure by anyone other than a principal 
  7.19  campaign committee that does not qualify as an independent 
  7.20  expenditure under this subdivision is deemed to be an approved 
  7.21  expenditure under subdivision 4. 
  7.22     Sec. 4.  Minnesota Statutes 2002, section 10A.01, 
  7.23  subdivision 21, is amended to read: 
  7.24     Subd. 21.  [LOBBYIST.] (a) "Lobbyist" means an individual: 
  7.25     (1) engaged for pay or other consideration, or authorized 
  7.26  to spend money by another individual, association, political 
  7.27  subdivision, or public higher education system, who spends more 
  7.28  than five hours in any month or more than $250, not including 
  7.29  the individual's own travel expenses and membership dues, of 
  7.30  more than $2,000 in any year, for the purpose of attempting to 
  7.31  influence legislative or administrative action, or the official 
  7.32  action of a metropolitan governmental unit, by communicating or 
  7.33  urging others to communicate with public or local officials; or 
  7.34     (2) who spends more than $250, not including the first 
  7.35  $1,000 of the individual's own traveling expenses and membership 
  7.36  dues, in any year for the purpose of attempting to influence 
  8.1   legislative or administrative action, or the official action of 
  8.2   a metropolitan governmental unit, by communicating or urging 
  8.3   others to communicate with public or local officials. 
  8.4      (b) "Lobbyist" does not include: 
  8.5      (1) a public official; 
  8.6      (2) an employee of the state, including an employee of any 
  8.7   of the public higher education systems; 
  8.8      (3) an elected local official; 
  8.9      (4) a nonelected local official or an employee of a 
  8.10  political subdivision or public higher education system acting 
  8.11  in an official capacity, unless the nonelected official or 
  8.12  employee of a political subdivision or public higher education 
  8.13  system spends more than 50 hours in any month attempting to 
  8.14  influence legislative or administrative action, or the official 
  8.15  action of a metropolitan governmental unit other than the 
  8.16  political subdivision or public higher education system 
  8.17  employing the official or employee, by communicating or urging 
  8.18  others to communicate with public or local officials, including 
  8.19  time spent monitoring legislative or administrative action, or 
  8.20  the official action of a metropolitan governmental unit, and 
  8.21  related research, analysis, and compilation and dissemination of 
  8.22  information relating to legislative or administrative policy in 
  8.23  this state, or to the policies of metropolitan governmental 
  8.24  units; 
  8.25     (5) a party or the party's representative appearing in a 
  8.26  proceeding before a state board, commission, or agency of the 
  8.27  executive branch unless the board, commission, or agency is 
  8.28  taking administrative action; 
  8.29     (6) an individual while engaged in selling goods or 
  8.30  services to be paid for by public funds; 
  8.31     (7) a news medium or its employees or agents while engaged 
  8.32  in the publishing or broadcasting of news items, editorial 
  8.33  comments, or paid advertisements which directly or indirectly 
  8.34  urge official action; 
  8.35     (8) a paid expert witness whose testimony is requested by 
  8.36  the body before which the witness is appearing, but only to the 
  9.1   extent of preparing or delivering testimony; or 
  9.2      (9) a party or the party's representative appearing to 
  9.3   present a claim to the legislature and communicating to 
  9.4   legislators only by the filing of a claim form and supporting 
  9.5   documents and by appearing at public hearings on the claim. 
  9.6      Sec. 5.  Minnesota Statutes 2002, section 10A.02, 
  9.7   subdivision 11a, is amended to read: 
  9.8      Subd. 11a.  [DATA PRIVACY.] (a) If, after making a public 
  9.9   finding concerning probable cause or entering a conciliation 
  9.10  agreement, the board determines that the record of the 
  9.11  investigation contains statements, documents, or other matter 
  9.12  that, if disclosed, would unfairly injure the reputation of an 
  9.13  innocent individual, the board may: 
  9.14     (1) retain the statement, document, or other matter as a 
  9.15  private record, as defined in section 13.02, subdivision 12, for 
  9.16  a period of one year, after which it must be destroyed; or 
  9.17     (2) return the statement, document, or other matter to the 
  9.18  individual who supplied it to the board. 
  9.19     (b) When publishing reports or statements on its Web site, 
  9.20  the board must not publish the home street address or telephone 
  9.21  number of an individual. 
  9.22     Sec. 6.  Minnesota Statutes 2002, section 10A.14, 
  9.23  subdivision 2, is amended to read: 
  9.24     Subd. 2.  [FORM.] The statement of organization must 
  9.25  include: 
  9.26     (1) the name and address of the committee, fund, or party 
  9.27  unit; 
  9.28     (2) the name and address of the chair of a political 
  9.29  committee, principal campaign committee, or party unit; 
  9.30     (3) the name and address of any supporting association of a 
  9.31  political fund; 
  9.32     (4) the name and address of the treasurer and any deputy 
  9.33  treasurers and, for a principal campaign committee, any other 
  9.34  individual authorized to accept contributions on behalf of the 
  9.35  principal campaign committee; 
  9.36     (5) a listing of all depositories or safety deposit boxes 
 10.1   used; and 
 10.2      (6) for the state committee of a political party only, a 
 10.3   list of its party units. 
 10.4      Sec. 7.  Minnesota Statutes 2002, section 10A.20, is 
 10.5   amended by adding a subdivision to read: 
 10.6      Subd. 1b.  [MANNER OF FILING; PUBLICATION.] If 
 10.7   contributions or expenditures exceed $5,000 in a year, the 
 10.8   report must be filed with the board in an electronic format 
 10.9   approved by the board.  Regardless of whether the report is 
 10.10  filed electronically, the board must publish the report on its 
 10.11  Web site within seven days after the date it was due.  The 
 10.12  publication must be in a form that permits a user of the Web 
 10.13  site to search the reports and prepare comparisons and 
 10.14  cross-tabulations among the various candidates, contributors, 
 10.15  vendors, and committees. 
 10.16     Sec. 8.  Minnesota Statutes 2002, section 10A.20, 
 10.17  subdivision 2, is amended to read: 
 10.18     Subd. 2.  [TIME FOR FILING.] (a) The reports must be filed 
 10.19  with the board on or before January 31 of each year and 
 10.20  additional reports must be filed as required and in accordance 
 10.21  with paragraphs (b) and, (c), and (d).  
 10.22     (b) In each year in which the name of the candidate is on 
 10.23  the ballot, the report of the principal campaign committee must 
 10.24  be filed 15 days before a primary and ten days before a general 
 10.25  election, seven days before a special primary and a special 
 10.26  election, and ten days after a special election cycle.  
 10.27     (c) In each general election year, a political committee, 
 10.28  political fund, or party unit must file reports 15 days before a 
 10.29  primary and ten days before a general election.  
 10.30     (d) A political committee or political fund that makes 
 10.31  independent expenditures related to a special election must file 
 10.32  reports on the independent expenditures seven days before the 
 10.33  special primary and special election and ten days after the 
 10.34  special election cycle. 
 10.35     Sec. 9.  Minnesota Statutes 2002, section 10A.20, 
 10.36  subdivision 6b, is amended to read: 
 11.1      Subd. 6b.  [INDEPENDENT EXPENDITURES; NOTICE.] (a) 
 11.2   Within 24 48 hours after an individual, political committee, or 
 11.3   political fund, principal campaign committee, or party unit 
 11.4   makes or becomes obligated by oral or written agreement to make 
 11.5   an independent expenditure in excess of $100 in a legislative 
 11.6   district election or $500 in a statewide election, other than an 
 11.7   expenditure by an association targeted to inform solely its own 
 11.8   dues-paying members of the association's position on a 
 11.9   candidate, the individual, political committee, or political 
 11.10  fund, principal campaign committee, or party unit must file with 
 11.11  the board an affidavit notifying the board a notice of the 
 11.12  intent to make the independent expenditure and serve provide a 
 11.13  copy of the affidavit on notice to each candidate in the 
 11.14  affected race and on to the treasurer of the candidate's 
 11.15  principal campaign committee.  The affidavit notice must contain 
 11.16  the information with respect to the expenditure that is required 
 11.17  to be reported under subdivision 3, paragraph (g); except that 
 11.18  if an expenditure is reported before it is made, the notice must 
 11.19  include a reasonable estimate of the anticipated amount.  The 
 11.20  notice must include an affidavit, under penalty of perjury, 
 11.21  signed and sworn to by the individual or by the treasurer of the 
 11.22  committee, fund, or party unit identifying the candidate in 
 11.23  support of or opposition to whom the expenditure is made and 
 11.24  affirming that the expenditure was independent and involved no 
 11.25  cooperation or coordination with a candidate or a political 
 11.26  party.  Each new expenditure requires a new notice. 
 11.27     (b) During the last three weeks before the primary election 
 11.28  and during the last three weeks before the general election, the 
 11.29  notice must be filed within 24 hours after making or becoming 
 11.30  obligated to make the independent expenditure. 
 11.31     (c) An individual or association may file a complaint with 
 11.32  the board that a required notice was not filed or that a notice 
 11.33  filed under this subdivision is false.  The board must determine 
 11.34  the complaint promptly.  If the board determines that a notice 
 11.35  was false and the board has distributed a public subsidy to a 
 11.36  candidate based on the false notice, the candidate must return 
 12.1   the subsidy to the board. 
 12.2      (d) An individual or the treasurer of a political committee 
 12.3   or, political fund, principal campaign committee, or party unit 
 12.4   who fails to give notice as required by this subdivision, or who 
 12.5   files a false affidavit of notice, is guilty of a gross 
 12.6   misdemeanor and is subject to a civil fine of up to four times 
 12.7   the amount of the independent expenditure stated in the notice 
 12.8   or of which notice was required, whichever is greater. 
 12.9      Sec. 10.  Minnesota Statutes 2002, section 10A.20, is 
 12.10  amended by adding a subdivision to read: 
 12.11     Subd. 6c.  [EXCESS SPENDING REPORTS.] The treasurer of the 
 12.12  principal campaign committee of a candidate who has not signed a 
 12.13  spending limit agreement under section 10A.322 must file with 
 12.14  the board a report disclosing the sum of all expenditures made 
 12.15  by or on behalf of the committee that exceed the expenditure 
 12.16  limit for any opponent of the candidate who has signed a 
 12.17  spending limit agreement under section 10A.322 within 48 hours 
 12.18  after the spending exceeds the spending limit by more than $100 
 12.19  for a candidate for legislative office or $500 for a candidate 
 12.20  for statewide office.  The treasurer must file an additional 
 12.21  report within 48 hours after spending any additional amounts 
 12.22  that exceed the participating candidate's spending limit. 
 12.23     Sec. 11.  Minnesota Statutes 2002, section 10A.25, 
 12.24  subdivision 1, is amended to read: 
 12.25     Subdivision 1.  [LIMITS ARE VOLUNTARY.] (a) The expenditure 
 12.26  limits imposed by this section on a candidate apply only to a 
 12.27  candidate who has signed an agreement under section 10A.322 to 
 12.28  be bound by them as a condition of receiving a public subsidy 
 12.29  for the candidate's campaign. 
 12.30     (b) The prohibition imposed by this section on a political 
 12.31  party applies only to a political party that has signed an 
 12.32  agreement under section 10A.322 to be bound by it as a condition 
 12.33  of receiving a public subsidy for the party's activities. 
 12.34     (c) The expenditure limits imposed by this section on a 
 12.35  party caucus in a house of the legislature apply only to a party 
 12.36  caucus that has signed and filed an agreement under section 
 13.1   10A.322 to be bound by them as a condition of receiving a public 
 13.2   subsidy for the caucus' activities. 
 13.3      Sec. 12.  Minnesota Statutes 2002, section 10A.25, 
 13.4   subdivision 2, is amended to read: 
 13.5      Subd. 2.  [AMOUNTS.] (a) In a year in which During an 
 13.6   election is held for an office sought by a candidate cycle, the 
 13.7   principal campaign committee of the candidate must not make 
 13.8   campaign expenditures nor permit approved expenditures to be 
 13.9   made on behalf of the candidate that result in aggregate 
 13.10  expenditures in excess of the following: 
 13.11     (1) for governor and lieutenant governor, running together, 
 13.12  $2,188,090 $1,800,000; 
 13.13     (2) for attorney general, $364,690 $350,000; 
 13.14     (3) for secretary of state and state auditor, separately, 
 13.15  $182,350 $175,000; 
 13.16     (4) for state senator, $54,740 $45,000; and 
 13.17     (5) for state representative, $27,380 $28,000. 
 13.18     (b) In addition to the amount in paragraph (a), clause (1), 
 13.19  a candidate for endorsement for the office of lieutenant 
 13.20  governor at the convention of a political party may make 
 13.21  campaign expenditures and approved expenditures of five percent 
 13.22  of that amount to seek endorsement.  
 13.23     (c) If a special election cycle occurs during a general 
 13.24  election cycle, expenditures by or on behalf of a candidate in 
 13.25  the special election do not count as expenditures by or on 
 13.26  behalf of the candidate in the general election. 
 13.27     (d) The expenditure limits in this subdivision for an 
 13.28  office are increased by ten percent for a candidate who is 
 13.29  running for that office for the first time and who has not run 
 13.30  previously for any other office whose territory now includes a 
 13.31  population that is more than one-third of the population in the 
 13.32  territory of the new office. 
 13.33     (e) The expenditure limits in this subdivision for a 
 13.34  participating candidate are increased by the sum of expenditures 
 13.35  by a nonparticipating opponent of the candidate, as reported to 
 13.36  the board under section 10A.20, subdivision 2, 6, or 6c, in 
 14.1   excess of the participating candidate's original spending limit. 
 14.2      (f) The expenditure limits in this subdivision for a 
 14.3   candidate are increased by the sum of independent expenditures 
 14.4   made in opposition to the candidate plus independent 
 14.5   expenditures made in support of the candidate's major political 
 14.6   party opponents, as reported to the board under section 10A.20, 
 14.7   subdivision 2, 6, or 6b. 
 14.8      Sec. 13.  Minnesota Statutes 2002, section 10A.25, 
 14.9   subdivision 2a, is amended to read: 
 14.10     Subd. 2a.  [AGGREGATED EXPENDITURES.] If a candidate makes 
 14.11  expenditures from more than one principal campaign committee for 
 14.12  nomination or election to statewide office in the same 
 14.13  election year cycle, the amount of expenditures from all of the 
 14.14  candidate's principal campaign committees for statewide office 
 14.15  for that election year cycle must be aggregated for purposes of 
 14.16  applying the limits on expenditures under subdivision 2. 
 14.17     Sec. 14.  Minnesota Statutes 2002, section 10A.25, is 
 14.18  amended by adding a subdivision to read: 
 14.19     Subd. 14.  [INDEPENDENT EXPENDITURES BY POLITICAL PARTIES.] 
 14.20  (a) A political party or party unit must not make an independent 
 14.21  expenditure. 
 14.22     (b) A political party that has agreed not to make 
 14.23  independent expenditures as a condition of receiving a public 
 14.24  subsidy is released from the prohibition but remains eligible to 
 14.25  receive a public subsidy if a political party that has not 
 14.26  agreed to the prohibition makes an independent expenditure 
 14.27  during that election cycle. 
 14.28     (c) A political party that has not agreed to the 
 14.29  prohibition in this subdivision must file written notice with 
 14.30  the board and serve written notice on every other political 
 14.31  party within 24 hours after making an independent expenditure.  
 14.32  The notice must state only that the political party has made an 
 14.33  independent expenditure.  Upon receipt of the notice, the 
 14.34  political party that agreed to the prohibition is no longer 
 14.35  subject to the prohibition but remains eligible to receive a 
 14.36  public subsidy. 
 15.1      Sec. 15.  Minnesota Statutes 2002, section 10A.25, is 
 15.2   amended by adding a subdivision to read: 
 15.3      Subd. 15.  [LIMITS ON PARTY CAUCUSES.] (a) In a year in 
 15.4   which a general election is held for a house of the legislature, 
 15.5   the party unit composed of the members of a party caucus in that 
 15.6   house must not make campaign expenditures that result in 
 15.7   aggregate expenditures in excess of $500,000.  
 15.8      (b) During an election cycle, in any year before the 
 15.9   general election year for a house of the legislature, the party 
 15.10  unit composed of the members of a party caucus in that house 
 15.11  must not make campaign expenditures that exceed 20 percent of 
 15.12  the general election year limit. 
 15.13     (c) A party caucus in a house of the legislature that has 
 15.14  agreed to be bound by the expenditure limits imposed by this 
 15.15  subdivision as a condition of receiving a public subsidy is 
 15.16  released from the expenditure limits but remains eligible to 
 15.17  receive a public subsidy if another party caucus in the same 
 15.18  house of the legislature has not agreed to be bound by the 
 15.19  limits and has received contributions or made or become 
 15.20  obligated to make expenditures during that election cycle in 
 15.21  excess of 50 percent of the expenditure limit set forth in 
 15.22  paragraph (a). 
 15.23     (d) A party caucus in a house of the legislature that has 
 15.24  not agreed to be bound by the limits must file written notice 
 15.25  with the board and provide written notice to every other party 
 15.26  caucus in the same house of the legislature within 24 hours 
 15.27  after exceeding the limit in paragraph (c).  The notice must 
 15.28  state only that the party caucus has received contributions or 
 15.29  made or become obligated to make campaign expenditures in excess 
 15.30  of the limit in paragraph (c).  Upon receipt of the notice, a 
 15.31  party caucus that had agreed to be bound by the limits is no 
 15.32  longer bound by the expenditure limits but remains eligible to 
 15.33  receive a public subsidy. 
 15.34     Sec. 16.  Minnesota Statutes 2002, section 10A.257, 
 15.35  subdivision 1, is amended to read: 
 15.36     Subdivision 1.  [UNUSED FUNDS.] After all campaign 
 16.1   expenditures and noncampaign disbursements for an election cycle 
 16.2   have been made, an amount up to 50 percent of the election year 
 16.3   expenditure limit for the office may be carried forward.  Any 
 16.4   remaining amount up to the total amount of the public subsidy 
 16.5   from the state elections campaign fund must be returned to the 
 16.6   state treasury for credit to the general fund under section 
 16.7   10A.324.  Any remaining amount in excess of the total public 
 16.8   subsidy must be contributed to the state elections campaign fund 
 16.9   or a political party for multicandidate expenditures as defined 
 16.10  in section 10A.275. 
 16.11     Sec. 17.  Minnesota Statutes 2002, section 10A.27, 
 16.12  subdivision 1, is amended to read: 
 16.13     Subdivision 1.  [CONTRIBUTION LIMITS.] (a) Except as 
 16.14  provided in subdivision subdivisions 1a and 2, a candidate must 
 16.15  not permit the candidate's principal campaign committee to 
 16.16  accept aggregate contributions made or delivered by any 
 16.17  individual, political committee, or political fund in excess of 
 16.18  the following: 
 16.19     (1) to candidates for governor and lieutenant governor 
 16.20  running together, $2,000 $1,000 in an election year for the 
 16.21  office sought and $500 in other years cycle; 
 16.22     (2) to a candidate for attorney general, $1,000 in an 
 16.23  election year for the office sought and $200 in other years 
 16.24  cycle; 
 16.25     (3) to a candidate for the office of secretary of state or 
 16.26  state auditor, $500 in an election year for the office sought 
 16.27  and $100 in other years cycle; 
 16.28     (4) to a candidate for state senator, $500 in an election 
 16.29  year for the office sought and $100 in other years cycle; and 
 16.30     (5) to a candidate for state representative, $500 in an 
 16.31  election year for the office sought and $100 in the other year 
 16.32  cycle. 
 16.33     (b) The following deliveries are not subject to the 
 16.34  bundling limitation in this subdivision: 
 16.35     (1) delivery of contributions collected by a member of the 
 16.36  candidate's principal campaign committee, such as a block worker 
 17.1   or a volunteer who hosts a fund-raising event, to the 
 17.2   committee's treasurer named in the committee's statement of 
 17.3   organization as an individual authorized to accept contributions 
 17.4   on behalf of the committee; and 
 17.5      (2) a delivery made by an individual on behalf of the 
 17.6   individual's spouse.  
 17.7      (c) A political committee or political fund must not make a 
 17.8   contribution a candidate is prohibited from accepting. 
 17.9      Sec. 18.  Minnesota Statutes 2002, section 10A.27, is 
 17.10  amended by adding a subdivision to read: 
 17.11     Subd. 1a.  [LIMIT ON CANDIDATES WHO AGREE TO SPENDING 
 17.12  LIMIT.] A candidate who has signed a spending limit agreement 
 17.13  under section 10A.322 must not permit the candidate's principal 
 17.14  campaign committee to accept aggregate contributions made or 
 17.15  delivered by an individual in excess of $100 in any year or by a 
 17.16  political committee, political fund, party unit, or lobbyist in 
 17.17  any amount. 
 17.18     The following deliveries are not subject to the bundling 
 17.19  limitation in this subdivision: 
 17.20     (1) delivery of contributions collected by a member of the 
 17.21  candidate's principal campaign committee named in the 
 17.22  committee's statement of organization as an individual 
 17.23  authorized to accept contributions on behalf of the committee; 
 17.24  and 
 17.25     (2) a delivery made by an individual on behalf of the 
 17.26  individual's spouse.  
 17.27     Sec. 19.  Minnesota Statutes 2002, section 10A.27, 
 17.28  subdivision 11, is amended to read: 
 17.29     Subd. 11.  [CONTRIBUTIONS FROM CERTAIN TYPES OF 
 17.30  CONTRIBUTORS.] A candidate must not permit the candidate's 
 17.31  principal campaign committee to accept a contribution from a 
 17.32  political committee, political fund, party unit, lobbyist, or 
 17.33  large contributor, if the contribution will cause the aggregate 
 17.34  contributions from those types of contributors to exceed an 
 17.35  amount equal to 20 percent of the expenditure limits for the 
 17.36  office sought by the candidate, provided that the 20 percent 
 18.1   limit must be rounded to the nearest $100.  For purposes of this 
 18.2   subdivision, "large contributor" means an individual, other than 
 18.3   the candidate, who contributes an amount that is more than $100 
 18.4   and more than one-half the amount an individual may contribute. 
 18.5      Sec. 20.  Minnesota Statutes 2002, section 10A.27, is 
 18.6   amended by adding a subdivision to read: 
 18.7      Subd. 14.  [CONTRIBUTIONS TO PARTY CAUCUSES.] The chair of 
 18.8   a party caucus within a house of the legislature that is subject 
 18.9   to a spending limit agreement under section 10A.322 must not 
 18.10  permit the caucus to accept aggregate contributions made or 
 18.11  delivered by an individual in excess of $100 in any year or by a 
 18.12  political committee, political fund, party unit, or lobbyist in 
 18.13  any amount. 
 18.14     Sec. 21.  Minnesota Statutes 2002, section 10A.27, is 
 18.15  amended by adding a subdivision to read: 
 18.16     Subd. 15.  [CONTRIBUTIONS TO OTHER POLITICAL COMMITTEES OR 
 18.17  FUNDS.] The treasurer of a political committee, political fund, 
 18.18  or party unit must not permit the political committee, political 
 18.19  fund, or party unit to accept aggregate contributions from an 
 18.20  individual or association in an amount more than $500 in an 
 18.21  election cycle. 
 18.22     Sec. 22.  Minnesota Statutes 2002, section 10A.27, is 
 18.23  amended by adding a subdivision to read: 
 18.24     Subd. 16.  [AGGREGATE LIMIT ON INDIVIDUALS.] An individual 
 18.25  may not contribute more than $5,000 in aggregate contributions 
 18.26  for any purpose to all candidates, political committees, 
 18.27  political funds, and party units in an election cycle. 
 18.28     Sec. 23.  Minnesota Statutes 2002, section 10A.275, 
 18.29  subdivision 1, is amended to read: 
 18.30     Subdivision 1.  [EXCEPTIONS.] Notwithstanding other 
 18.31  provisions of this chapter, the following expenditures by a 
 18.32  party unit, or two or more party units acting together, with at 
 18.33  least one party unit being either:  the state committee or the 
 18.34  party organization within a congressional district, county, or 
 18.35  legislative district, are not considered contributions to or 
 18.36  expenditures on behalf of a candidate for the purposes of 
 19.1   section 10A.25 or 10A.27 and must not be allocated to candidates 
 19.2   under section 10A.20, subdivision 3, paragraph (g): 
 19.3      (1) expenditures on behalf of candidates of that party 
 19.4   generally without referring to any of them specifically in a 
 19.5   published, posted, or broadcast advertisement; 
 19.6      (2) expenditures for the preparation, display, mailing, or 
 19.7   other distribution of an official party sample ballot listing 
 19.8   the names of three or more individuals whose names are to appear 
 19.9   on the ballot; or 
 19.10     (3) expenditures for a telephone conversation including 
 19.11  mentioning with roughly equal emphasis the names of three or 
 19.12  more individuals whose names are to appear on the ballot; 
 19.13     (4) expenditures for a political party fund-raising effort 
 19.14  on behalf of three or more candidates; or 
 19.15     (5) expenditures for party committee staff services that 
 19.16  benefit three or more candidates.  
 19.17     Sec. 24.  Minnesota Statutes 2002, section 10A.28, 
 19.18  subdivision 1, is amended to read: 
 19.19     Subdivision 1.  [EXCEEDING EXPENDITURE LIMITS.] (a) A 
 19.20  candidate subject to the expenditure limits in section 10A.25 
 19.21  who permits the candidate's principal campaign committee to make 
 19.22  expenditures or permits approved expenditures to be made on the 
 19.23  candidate's behalf in excess of the limits imposed by section 
 19.24  10A.25, as adjusted by section 10A.255, is subject to a civil 
 19.25  penalty of up to four times the amount by which the expenditures 
 19.26  exceeded the limit. 
 19.27     (b) The chair of a political party or party unit subject to 
 19.28  the prohibition in section 10A.25 that makes expenditures in 
 19.29  violation of section 10A.25 is subject to a civil penalty of up 
 19.30  to four times the amount of the expenditures. 
 19.31     (c) The chair of a party caucus within a house of the 
 19.32  legislature subject to the expenditure limits in section 10A.25 
 19.33  who permits the caucus to make expenditures in excess of the 
 19.34  limits imposed by section 10A.25, as adjusted by section 
 19.35  10A.255, is subject to a civil penalty of up to four times the 
 19.36  amount by which the expenditures exceeded the limit. 
 20.1      Sec. 25.  Minnesota Statutes 2002, section 10A.28, 
 20.2   subdivision 2, is amended to read: 
 20.3      Subd. 2.  [EXCEEDING CONTRIBUTION LIMITS.] A political 
 20.4   committee, political fund, or principal campaign committee that 
 20.5   makes a contribution, or a candidate who permits the candidate's 
 20.6   principal campaign committee to accept contributions, in excess 
 20.7   of the limits imposed by section 10A.27 is subject to a civil 
 20.8   penalty of up to four times the amount by which the contribution 
 20.9   exceeded the limits.  The chair of a party caucus within a house 
 20.10  of the legislature who permits the caucus to accept 
 20.11  contributions in excess of the limits imposed by section 10A.27 
 20.12  is subject to a civil penalty of up to four times the amount by 
 20.13  which the contribution exceeded the limits. 
 20.14     Sec. 26.  Minnesota Statutes 2002, section 10A.315, is 
 20.15  amended to read: 
 20.16     10A.315 [SPECIAL ELECTION SUBSIDY.] 
 20.17     (a) Each eligible candidate for a legislative office in a 
 20.18  special election must be paid a public subsidy equal to the sum 
 20.19  of: 
 20.20     (1) the party account money at the last general election 
 20.21  for the candidate's party for the office the candidate is 
 20.22  seeking; and 
 20.23     (2) the general account money public subsidy paid to a 
 20.24  candidate for the same office at the last a general election.  
 20.25     (b) A candidate who wishes to receive this public subsidy 
 20.26  must submit a signed agreement under section 10A.322 to the 
 20.27  board and must meet the contribution requirements of section 
 20.28  10A.323.  The special election subsidy must be distributed in 
 20.29  the same manner as money in the party and general accounts is 
 20.30  distributed to legislative candidates in a general election. 
 20.31     (c) The amount necessary to make the payments required by 
 20.32  this section is appropriated from the general fund to the board. 
 20.33     Sec. 27.  Minnesota Statutes 2002, section 10A.322, is 
 20.34  amended to read: 
 20.35     10A.322 [SPENDING LIMIT AGREEMENTS.] 
 20.36     Subdivision 1.  [AGREEMENT BY CANDIDATE.] (a) As a 
 21.1   condition of receiving a public subsidy, a candidate must sign 
 21.2   and file with the board a written agreement in which the 
 21.3   candidate agrees that the candidate will comply with sections 
 21.4   10A.25; 10A.27, subdivision 10; 10A.31, subdivision 7, paragraph 
 21.5   (c); and 10A.324; and 10A.38. 
 21.6      (b) Before the first day of filing for office, the board 
 21.7   must forward agreement forms to all filing officers.  The board 
 21.8   must also provide agreement forms to candidates on request at 
 21.9   any time.  The candidate must file the agreement with the board 
 21.10  by September 1 preceding the candidate's general election or a 
 21.11  special election held at the general election not later than the 
 21.12  day after the candidate files the affidavit of candidacy for the 
 21.13  office.  An agreement may not be filed after that date.  An 
 21.14  agreement once filed may not be rescinded. 
 21.15     (c) The board must notify the commissioner of revenue of 
 21.16  any agreement signed filed under this subdivision. 
 21.17     (d) Notwithstanding paragraph (b), if a vacancy occurs that 
 21.18  will be filled by means of a special election and the filing 
 21.19  period does not coincide with the filing period for the general 
 21.20  election, a candidate may sign and submit a spending limit 
 21.21  agreement not later than the day after the candidate files the 
 21.22  affidavit of candidacy or nominating petition for the office. 
 21.23     Subd. 2.  [HOW LONG AGREEMENT IS EFFECTIVE.] The agreement, 
 21.24  insofar as it relates to the expenditure limits in section 
 21.25  10A.25, as adjusted by section 10A.255, and the contribution 
 21.26  limit in section 10A.27, subdivision 10, remains effective for 
 21.27  candidates until the dissolution of the principal campaign 
 21.28  committee of the candidate or the end of the first election 
 21.29  cycle completed after the agreement was filed, whichever occurs 
 21.30  first. 
 21.31     Subd. 2.  [AGREEMENT BY POLITICAL PARTY.] (a) As a 
 21.32  condition of receiving a public subsidy, the chair of the state 
 21.33  committee of a political party must sign and file with the board 
 21.34  a written agreement in which the state committee agrees that the 
 21.35  political party and all its party units, other than a 
 21.36  legislative party caucus, will comply with section 10A.25.  An 
 22.1   agreement once filed may not be rescinded.  
 22.2      (b) The board must provide agreement forms to political 
 22.3   parties on request at any time.  The state chair must file the 
 22.4   agreement with the board by February 1 of the general election 
 22.5   year. 
 22.6      (c) The spending limit agreement remains in effect until 
 22.7   the end of the first general election cycle completed after the 
 22.8   agreement was filed or the dissolution of the political party, 
 22.9   whichever occurs first. 
 22.10     (d) The board must notify the commissioner of revenue of an 
 22.11  agreement filed under this subdivision. 
 22.12     Subd. 2a.  [AGREEMENT BY PARTY CAUCUS.] (a) As a condition 
 22.13  of receiving a public subsidy, the chair of a party caucus in a 
 22.14  house of the legislature must sign and file with the board a 
 22.15  written agreement in which the caucus agrees that it will comply 
 22.16  with sections 10A.25 and 10A.27, subdivision 14.  An agreement 
 22.17  once filed may not be rescinded.  
 22.18     (b) The board must provide agreement forms to legislative 
 22.19  party caucuses on request at any time.  The party caucus must 
 22.20  file the agreement with the board by February 1 of the general 
 22.21  election year. 
 22.22     (c) The spending limit agreement remains in effect until 
 22.23  the end of the first election cycle completed after the 
 22.24  agreement was filed or the dissolution of the legislative party 
 22.25  caucus, whichever occurs first.  
 22.26     (d) The board must notify the commissioner of revenue of an 
 22.27  agreement filed under this subdivision. 
 22.28     Subd. 4.  [REFUND RECEIPT FORMS; PENALTY.] (a) The board 
 22.29  must make available to a political party on request and to any 
 22.30  candidate, political party, or legislative party caucus for whom 
 22.31  an agreement under this section is effective, a supply of 
 22.32  official refund receipt forms that state in boldface type that 
 22.33  (1) a contributor who is given a receipt form is eligible to 
 22.34  claim a refund as provided in section 290.06, subdivision 23, 
 22.35  and (2) if the contribution is to a candidate, that the 
 22.36  candidate, political party, or legislative party caucus has 
 23.1   signed an agreement to limit campaign expenditures as provided 
 23.2   in this section.  The forms must provide duplicate copies of the 
 23.3   receipt to be attached to the contributor's claim.  A principal 
 23.4   campaign committee or party unit must return to the board with 
 23.5   its termination report or destroy any official receipt forms 
 23.6   that have not been issued. 
 23.7      (b) A candidate who does not sign an agreement under this 
 23.8   section and who willfully issues an official refund receipt form 
 23.9   or a facsimile of one to any of the candidate's contributors is 
 23.10  guilty of a misdemeanor.  If the state chair of a political 
 23.11  party has not signed an agreement under this section and the 
 23.12  chair of a party unit willfully issues an official refund 
 23.13  receipt form or a facsimile of one to any of the party's 
 23.14  contributors, the chair of the party unit is guilty of a 
 23.15  misdemeanor.  If the chair of a legislative party caucus has not 
 23.16  signed an agreement under this section and the caucus chair 
 23.17  willfully issues an official refund receipt form or a facsimile 
 23.18  of one to any of the caucus's contributors, the caucus chair is 
 23.19  guilty of a misdemeanor.  
 23.20     Sec. 28.  [10A.3235] [PUBLIC SUBSIDY TO CANDIDATES.] 
 23.21     Subdivision 1.  [APPROPRIATION.] In each general election 
 23.22  year there is appropriated from the general fund a sum 
 23.23  sufficient to pay the public subsidy provided for in this 
 23.24  section. 
 23.25     Subd. 2.  [ELIGIBILITY.] A candidate who has duly filed a 
 23.26  spending limit agreement under section 10A.322, an affidavit of 
 23.27  contributions under section 10A.323, and an affidavit of 
 23.28  candidacy under section 204B.06, and who is opposed in either 
 23.29  the primary or general election is eligible to receive a public 
 23.30  subsidy under this section.  Upon determining that a candidate 
 23.31  is eligible, the board must designate the candidate as 
 23.32  participating. 
 23.33     Subd. 3.  [FORM OF PAYMENT.] The payment must be in the 
 23.34  form of a check made payable to "the campaign fund of ...... 
 23.35  (name of candidate) ......"  A check may include as an 
 23.36  additional payee a financial institution named by the candidate 
 24.1   in a notice filed with the board at least ten days before the 
 24.2   payment was due to be made.  Once the notice has been filed, the 
 24.3   candidate may not remove or change the name of the additional 
 24.4   payee without filing with the board the written approval of the 
 24.5   financial institution previously named.  
 24.6      Subd. 4.  [PAYMENT FOR PRIMARY ELECTION.] Within ten days 
 24.7   after the close of filings for office, the board must pay each 
 24.8   participating candidate who has an opponent in a major party 
 24.9   primary a public subsidy equal to 25 percent of the candidate's 
 24.10  spending limit.  
 24.11     Subd. 5.  [PAYMENT FOR GENERAL ELECTION.] As soon as the 
 24.12  board has obtained from the secretary of state the results of 
 24.13  the primary election, but no later than one week after the state 
 24.14  canvassing board has certified the results of the primary, the 
 24.15  board must pay to each participating candidate whose name will 
 24.16  appear on the ballot and who has an opponent in the general 
 24.17  election a public subsidy equal to 65 percent of the candidate's 
 24.18  spending limit, less any amount paid under subdivision 4. 
 24.19     Subd. 6.  [PAYMENT TO MATCH EXCESS SPENDING.] Within five 
 24.20  days after receipt of a report of excess spending under section 
 24.21  10A.20, subdivision 2, 6, or 6c, the board must notify any 
 24.22  participating opponent of the nonparticipating candidate of the 
 24.23  amount of increase in the spending limit of the participating 
 24.24  candidate and pay the participating candidate an additional 
 24.25  public subsidy.  The amount of the subsidy is equal to the 
 24.26  amount of the excess spending reported, subject to the limit in 
 24.27  subdivision 8. 
 24.28     Subd. 7.  [PAYMENT TO MATCH INDEPENDENT EXPENDITURES.] (a) 
 24.29  Within five days after receipt of a notice of independent 
 24.30  expenditures under section 10A.20, subdivision 2, 6, or 6b, the 
 24.31  board must notify a participating candidate of the amount of 
 24.32  increase in the spending limit of the participating candidate 
 24.33  and pay the participating candidate an additional public subsidy 
 24.34  as provided in this subdivision, subject to the limit in 
 24.35  subdivision 8. 
 24.36     (b) If the independent expenditure advocates the defeat of 
 25.1   a participating candidate, the board must pay a subsidy to the 
 25.2   participating candidate equal to the independent expenditure. 
 25.3      (c) If the independent expenditure advocates the election 
 25.4   of a participating candidate, the board must pay a subsidy to 
 25.5   each participating opponent of the candidate equal to the 
 25.6   independent expenditure. 
 25.7      (d) If the independent expenditure advocates the election 
 25.8   of a nonparticipating candidate, the board must pay a subsidy to 
 25.9   each participating opponent of the candidate.  The amount of the 
 25.10  public subsidy is the amount by which the sum of campaign 
 25.11  expenditures by the nonparticipating candidate plus the 
 25.12  independent expenditure exceeds the public subsidy previously 
 25.13  paid or due to the participating candidate. 
 25.14     (e) For purposes of this subdivision, before the primary 
 25.15  election, "opponent" means a candidate whose name is on the 
 25.16  ballot for the primary of the same major party or, if there is 
 25.17  none, a candidate whose name will be on the ballot for the 
 25.18  general election.  If an independent expenditure that advocates 
 25.19  the election of a candidate is made before the primary, and the 
 25.20  candidate wins the primary, "opponent" also means any other 
 25.21  candidate whose name will appear on the ballot in the general 
 25.22  election, but the notice required by this subdivision need not 
 25.23  be given and the public subsidy need not be paid until one week 
 25.24  after the state canvassing board has certified the results of 
 25.25  the primary.  
 25.26     Subd. 8.  [OVERALL LIMIT.] The total public subsidy paid to 
 25.27  a participating candidate under this section may not exceed 
 25.28  three times the candidate's original spending limit. 
 25.29     Sec. 29.  [10A.3237] [PUBLIC SUBSIDY TO POLITICAL PARTIES.] 
 25.30     Subdivision 1.  [APPROPRIATION.] In each general election 
 25.31  year there is appropriated from the general fund a sum 
 25.32  sufficient to pay the public subsidy provided for in this 
 25.33  section. 
 25.34     Subd. 2.  [CERTIFICATION.] By February 1 of each general 
 25.35  election year, the secretary of state must certify to the board 
 25.36  the name and mailing address of each major political party. 
 26.1      Subd. 3.  [PAYMENT TO STATE COMMITTEE.] By August 1 in each 
 26.2   general election year, the board must pay to the state committee 
 26.3   of each major political party that has signed and filed with the 
 26.4   board a spending limit agreement under section 10A.322 a public 
 26.5   subsidy of $200,000, plus $200,000 if the state committee of any 
 26.6   other major political party has not likewise signed and filed 
 26.7   with the board a spending limit agreement. 
 26.8      Subd. 4.  [PAYMENT TO LEGISLATIVE CAUCUS.] (a) By August 1 
 26.9   in each general election year, the board must pay a public 
 26.10  subsidy to each major political party caucus in a house of the 
 26.11  legislature that has a general election that year, if the caucus 
 26.12  has at least ten members in the senate or 20 members in the 
 26.13  house of representatives and the caucus chair has signed and 
 26.14  filed with the board a spending limit agreement under section 
 26.15  10A.322.  The amount of the subsidy is $100,000, plus $100,000 
 26.16  if the chair of any other major political party caucus in the 
 26.17  same house with at least ten members in the senate or 20 members 
 26.18  in the house of representatives has not likewise signed and 
 26.19  filed with the board a spending limit agreement. 
 26.20     (b) A legislative major party caucus may, by a written 
 26.21  notice filed with the board, waive its right to all or part of 
 26.22  its allocation under paragraph (a) and the board must reallocate 
 26.23  to the state committee the amount waived. 
 26.24     Subd. 5.  [USE OF PUBLIC SUBSIDY.] Money allocated to a 
 26.25  party unit under subdivision 3 or 4 must be deposited in a 
 26.26  separate account and must not be spent to support any candidate 
 26.27  who has not signed and filed with the board a spending limit 
 26.28  agreement.  
 26.29     Sec. 30.  [10A.38] [PUBLIC DEBATES.] 
 26.30     As a condition of receiving a public subsidy, a candidate 
 26.31  must agree to participate in at least two public debates before 
 26.32  the primary and at least two public debates before the general 
 26.33  election with the candidate's major political party opponents if 
 26.34  a statewide nonprofit, nonpartisan organization with experience 
 26.35  in sponsoring debates at the state or national level offers to 
 26.36  sponsor a debate between the candidate and the candidate's major 
 27.1   party opponents.  For purposes of this section, "nonpartisan" 
 27.2   means that the organization does not endorse candidates, 
 27.3   contribute to candidates, or make independent expenditures and 
 27.4   does not have any affiliate organizations that do.  Disputes 
 27.5   concerning scheduling and conduct of debates must be mediated by 
 27.6   the bureau of mediation services. 
 27.7      Sec. 31.  Minnesota Statutes 2002, section 200.02, is 
 27.8   amended by adding a subdivision to read: 
 27.9      Subd. 24.  [PARTY UNIT.] "Party unit" means the state 
 27.10  committee or the party organization within a house of the 
 27.11  legislature, congressional district, county, legislative 
 27.12  district, municipality, or precinct. 
 27.13     Sec. 32.  Minnesota Statutes 2002, section 290.06, 
 27.14  subdivision 23, is amended to read: 
 27.15     Subd. 23.  [REFUND OF CONTRIBUTIONS TO POLITICAL PARTIES 
 27.16  AND CANDIDATES.] (a) A taxpayer may claim a refund equal to the 
 27.17  amount of the taxpayer's contributions made in the calendar year 
 27.18  to candidates and to a political party.  The maximum refund for 
 27.19  an individual must not exceed $50 $100 and for a married couple, 
 27.20  filing jointly, must not exceed $100 $200.  A refund of a 
 27.21  contribution is allowed only if the taxpayer files a form 
 27.22  required by the commissioner and attaches to the form a copy of 
 27.23  an official refund receipt form issued by the candidate or party 
 27.24  and signed by the candidate, the treasurer of the candidate's 
 27.25  principal campaign committee, or the chair or treasurer of the 
 27.26  party unit, after the contribution was received.  The receipt 
 27.27  forms must be numbered, and the data on the receipt that are not 
 27.28  public must be made available to the campaign finance and public 
 27.29  disclosure board upon its request.  A claim must be filed with 
 27.30  the commissioner no sooner than January 1 of the calendar year 
 27.31  in which the contribution was made and no later than April 15 of 
 27.32  the calendar year following the calendar year in which the 
 27.33  contribution was made.  A taxpayer may file only one claim per 
 27.34  calendar year.  Amounts paid by the commissioner after June 15 
 27.35  of the calendar year following the calendar year in which the 
 27.36  contribution was made must include interest at the rate 
 28.1   specified in section 270.76. 
 28.2      (b) No refund is allowed under this subdivision for a 
 28.3   contribution to a candidate unless the candidate: 
 28.4      (1) has signed and filed an agreement to limit campaign 
 28.5   expenditures as provided in section 10A.322; 
 28.6      (2) is seeking an office for which voluntary spending 
 28.7   limits are specified in section 10A.25; and 
 28.8      (3) has designated a principal campaign committee.  
 28.9      This subdivision does not limit the campaign expenditures 
 28.10  of a candidate who does not sign an agreement but accepts a 
 28.11  contribution for which the contributor improperly claims a 
 28.12  refund.  
 28.13     No refund is allowed under this subdivision for a 
 28.14  contribution to a political party or party unit unless the state 
 28.15  chair of the political party has signed and filed an agreement 
 28.16  to limit campaign expenditures as provided in section 10A.322.  
 28.17     No refund is allowed under this subdivision for a 
 28.18  contribution to a party unit that is a legislative party caucus 
 28.19  unless the chair of the legislative party caucus has signed and 
 28.20  filed an agreement to limit campaign expenditures as provided in 
 28.21  section 10A.322.  
 28.22     (c) For purposes of this subdivision, "political party" 
 28.23  means a major political party as defined in section 200.02, 
 28.24  subdivision 7, or a minor political party qualifying for 
 28.25  inclusion on the income tax or property tax refund form under 
 28.26  section 10A.31, subdivision 3a has the meaning given it in 
 28.27  section 10A.01, subdivision 29.  
 28.28     A "major party" or "minor party" includes the aggregate of 
 28.29  that party's organization within each house of the legislature, 
 28.30  the state party organization, and the party organization within 
 28.31  congressional districts, counties, legislative districts, 
 28.32  municipalities, and precincts "Party unit" has the meaning given 
 28.33  it in section 10A.01, subdivision 30.  
 28.34     "Candidate" means a candidate as defined in section 10A.01, 
 28.35  subdivision 10, except a candidate for judicial office.  
 28.36     "Contribution" means a gift of money. 
 29.1      (d) The commissioner shall make copies of the form 
 29.2   available to the public and candidates upon request. 
 29.3      (e) The following data collected or maintained by the 
 29.4   commissioner under this subdivision are private:  the identities 
 29.5   of individuals claiming a refund, the identities of candidates 
 29.6   to whom those individuals have made contributions, and the 
 29.7   amount of each contribution.  
 29.8      (f) The commissioner shall report to the campaign finance 
 29.9   and public disclosure board by each August 1 a summary showing 
 29.10  the total number and aggregate amount of political contribution 
 29.11  refunds made on behalf of each candidate and each political 
 29.12  party.  These data are public. 
 29.13     (g) The amount necessary to pay claims for the refund 
 29.14  provided in this section is appropriated from the general fund 
 29.15  to the commissioner of revenue. 
 29.16     (h) For a taxpayer who files a claim for refund via the 
 29.17  Internet or other electronic means, the commissioner may accept 
 29.18  the number on the official receipt as documentation that a 
 29.19  contribution was made rather than the actual receipt as required 
 29.20  by paragraph (a). 
 29.21     Sec. 33.  [TRANSITION.] 
 29.22     Subdivision 1.  [ELECTION CYCLE.] Notwithstanding Minnesota 
 29.23  Statutes, section 10A.01, subdivision 16, the first election 
 29.24  cycle begins on the effective date of sections 1 to 34 and 
 29.25  concludes on December 31 following the next general election for 
 29.26  the office. 
 29.27     Subd. 2.  [CONTRIBUTION LIMITS.] Contributions to a 
 29.28  candidate that were made before the effective date of sections 1 
 29.29  to 34 and were lawful when made need not be refunded, even 
 29.30  though they exceed the new limits on contributions in this act. 
 29.31     Subd. 3.  [EXPENDITURE LIMITS.] All spending limit 
 29.32  agreements filed with the campaign finance and public disclosure 
 29.33  board before the effective date of sections 1 to 34 become void 
 29.34  on that date and all eligibility for continued public subsidies 
 29.35  under Minnesota Statutes, chapter 10A or 290, is ended on that 
 29.36  date.  The new expenditure limits and eligibility for a public 
 30.1   subsidy under sections 1 to 34 apply to candidates who sign and 
 30.2   file with the campaign finance and public disclosure board a new 
 30.3   spending limit agreement under Minnesota Statutes, section 
 30.4   10A.322, on or after the effective date of sections 1 to 34. 
 30.5      Sec. 34.  [REPEALER.] 
 30.6      Minnesota Statutes 2002, sections 10A.25, subdivision 6; 
 30.7   and 10A.31, are repealed. 
 30.8      Sec. 35.  [EFFECTIVE DATE.] 
 30.9      Sections 1 to 34 are effective the day following final 
 30.10  enactment.  The spending limits in Minnesota Statutes, section 
 30.11  10A.25, subdivision 2, as amended by section 12, apply to the 
 30.12  general election in 2004 and must not be adjusted for inflation 
 30.13  under Minnesota Statutes, section 10A.255, until the 2006 
 30.14  election cycle.