1.1                          A bill for an act 
  1.2             relating to campaign finance; clarifying definitions; 
  1.3             facilitating reports of last-minute contributions; 
  1.4             clarifying campaign finance requirements; requiring 
  1.5             return of public subsidies under certain conditions; 
  1.6             providing civil penalties; amending Minnesota Statutes 
  1.7             1996, sections 10A.01, subdivisions 7 and 23; 10A.03, 
  1.8             subdivision 3; 10A.04, subdivisions 5 and 7; 10A.065, 
  1.9             subdivisions 1, 3, and by adding a subdivision; 
  1.10            10A.08; 10A.09, subdivision 7; 10A.14, subdivision 4; 
  1.11            10A.15, subdivisions 3, 5, and by adding a 
  1.12            subdivision; 10A.20, subdivisions 3, 5, 6b, 12, and by 
  1.13            adding a subdivision; 10A.23; 10A.31, subdivisions 7 
  1.14            and 10; 10A.315; 10A.322, subdivisions 1 and 4; 
  1.15            10A.324, subdivision 1; 10A.34; 200.02, by adding a 
  1.16            subdivision; 211A.02, subdivision 2; and 211B.02; 
  1.17            Minnesota Statutes 1997 Supplement, sections 10A.20, 
  1.18            subdivision 2; 211A.12; and 290.06, subdivision 23; 
  1.19            proposing coding for new law in Minnesota Statutes, 
  1.20            chapter 211A; repealing Minnesota Statutes 1996, 
  1.21            section 10A.09, subdivision 3. 
  1.22  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.23     Section 1.  Minnesota Statutes 1996, section 10A.01, 
  1.24  subdivision 7, is amended to read: 
  1.25     Subd. 7.  [CONTRIBUTION.] "Contribution" means a transfer 
  1.26  of funds or a donation in kind. 
  1.27     "Contribution" includes any loan or advance of credit to a 
  1.28  political committee, political fund, or principal campaign 
  1.29  committee, which loan or advance of credit is (a) forgiven, or 
  1.30  (b) paid by an individual or an association other than the 
  1.31  political committee, political fund, or principal campaign 
  1.32  committee to which the loan or advance of credit is made.  If an 
  1.33  advance of credit or a loan is forgiven or paid as provided in 
  2.1   this subdivision, it is a contribution in the year in which the 
  2.2   loan or advance of credit is made. 
  2.3      A contribution made for the purpose of defeating a 
  2.4   candidate is considered made for the purpose of influencing the 
  2.5   nomination or election of that candidate or any opponent of that 
  2.6   candidate. 
  2.7      "Contribution" does not include services provided without 
  2.8   compensation by an individual volunteering personal time on 
  2.9   behalf of a candidate, ballot question, political committee, or 
  2.10  political fund~~, or~~. 
  2.11     "Contribution" does not include the uncompensated use by a 
  2.12  candidate or an individual volunteering personal time on behalf 
  2.13  of a candidate, ballot question, political committee, or 
  2.14  political fund, of the candidate or volunteer's own personal 
  2.15  property or private residence. 
  2.16     "Contribution" does not include the publishing or 
  2.17  broadcasting of news items or editorial comments by the news 
  2.18  media. 
  2.19     Sec. 2.  Minnesota Statutes 1996, section 10A.01, 
  2.20  subdivision 23, is amended to read: 
  2.21     Subd. 23.  [BALLOT QUESTION.] "Ballot question" means a 
  2.22  question or proposition which is placed on the ballot and which 
  2.23  may be voted on by all voters of the state.  ~~"Promoting or~~ 
  2.24  ~~defeating a ballot question" includes activities related to~~ 
  2.25  ~~qualifying the question for placement on the ballot.~~ 
  2.26     Sec. 3.  Minnesota Statutes 1996, section 10A.03, 
  2.27  subdivision 3, is amended to read: 
  2.28     Subd. 3.  The board shall notify by certified mail ~~or~~ 
  2.29  ~~personal service~~ any lobbyist who fails to file a registration 
  2.30  form within five days after becoming a lobbyist.  If a lobbyist 
  2.31  fails to file a form within ~~seven~~ ten days after ~~receiving this~~ 
  2.32  the notice was mailed, the board may impose a late filing fee at 
  2.33  $5 per day, not to exceed $100, commencing with the ~~eighth~~ 11th 
  2.34  day after ~~receiving~~ the notice was mailed.  ~~The board shall~~ 
  2.35  ~~further notify by certified mail or personal service any~~ 
  2.36  ~~lobbyist who fails to file a form within 21 days of receiving a~~ 
  3.1   ~~first notice that the lobbyist may be subject to a criminal~~ 
  3.2   ~~penalty for failure to file the form.  A lobbyist who knowingly~~ 
  3.3   ~~fails to file a form within seven days after receiving a second~~ 
  3.4   ~~notice from the board is guilty of a misdemeanor.~~ 
  3.5      Sec. 4.  Minnesota Statutes 1996, section 10A.04, 
  3.6   subdivision 5, is amended to read: 
  3.7      Subd. 5.  The board shall notify by certified mail ~~or~~ 
  3.8   ~~personal service~~ any lobbyist or principal who fails after seven 
  3.9   days after a filing date imposed by this section to file a 
  3.10  report or statement required by this section.  If a lobbyist or 
  3.11  principal fails to file a report within ~~seven~~ ten days after 
  3.12  ~~receiving this~~ the notice was mailed, the board may impose a 
  3.13  late filing fee of $5 per day, not to exceed $100, commencing 
  3.14  with the ~~eighth~~ 11th day after ~~receiving~~ the notice was 
  3.15  mailed.  ~~The board shall further notify by certified mail or~~ 
  3.16  ~~personal service any lobbyist who fails to file a report within~~ 
  3.17  ~~21 days after receiving a first notice that the lobbyist may be~~ 
  3.18  ~~subject to a criminal penalty for failure to file the report.  A~~ 
  3.19  ~~lobbyist who knowingly fails to file such a report or statement~~ 
  3.20  ~~within seven days after receiving a second notice from the board~~ 
  3.21  ~~is guilty of a misdemeanor.~~ 
  3.22     Sec. 5.  Minnesota Statutes 1996, section 10A.04, 
  3.23  subdivision 7, is amended to read: 
  3.24     Subd. 7.  [FINANCIAL RECORDS.] The board may randomly audit 
  3.25  the financial records of lobbyists and principals required to 
  3.26  report under this section.  Lobbyists and principals shall 
  3.27  retain for four years after the report was filed all records 
  3.28  concerning the matters reported under this chapter, including 
  3.29  vouchers, canceled checks, bills, invoices, worksheets, and 
  3.30  receipts.  
  3.31     Sec. 6.  Minnesota Statutes 1996, section 10A.065, 
  3.32  subdivision 1, is amended to read: 
  3.33     Subdivision 1.  [REGISTERED LOBBYIST CONTRIBUTIONS; 
  3.34  LEGISLATIVE SESSION.] A candidate for the legislature or for 
  3.35  constitutional office, a candidate's principal campaign 
  3.36  committee, any other political committee with the candidate's 
  4.1   name or title, any committee authorized by the candidate, or a 
  4.2   political committee established by all or a part of the party 
  4.3   organization within a house of the legislature, shall not 
  4.4   solicit or accept a contribution on behalf of a candidate's 
  4.5   principal campaign committee, any other political committee with 
  4.6   the candidate's name or title, any committee authorized by the 
  4.7   candidate, or a political committee established by all or a part 
  4.8   of the party organization within a house of the legislature, 
  4.9   from a registered lobbyist, political committee, or political 
  4.10  fund during a regular session of the legislature.  The lobbyist, 
  4.11  political committee, or political fund shall not make the 
  4.12  contribution.  However, the party organization within a house of 
  4.13  the legislature may receive a member's dues during a regular 
  4.14  session of the legislature, even if the dues are paid from the 
  4.15  assets of the member's principal campaign committee.  
  4.16     Sec. 7.  Minnesota Statutes 1996, section 10A.065, 
  4.17  subdivision 3, is amended to read: 
  4.18     Subd. 3.  [CIVIL PENALTY.] A candidate ~~or~~, political 
  4.19  committee, political fund, or lobbyist that violates this 
  4.20  section is subject to a civil fine of up to $500.  If the board 
  4.21  makes a public finding that there is probable cause to believe a 
  4.22  violation of this section has occurred, the board shall bring an 
  4.23  action, or transmit the finding to a county attorney who shall 
  4.24  bring an action, in the district court of Ramsey county, to 
  4.25  impose a civil fine as prescribed by the board.  Fines paid 
  4.26  under this section must be deposited in the general fund in the 
  4.27  state treasury. 
  4.28     Sec. 8.  Minnesota Statutes 1996, section 10A.065, is 
  4.29  amended by adding a subdivision to read: 
  4.30     Subd. 6.  [FEDERAL OFFICES.] This section does not prohibit 
  4.31  a candidate from soliciting or accepting a contribution to a 
  4.32  campaign for a federal office.  
  4.33     Sec. 9.  Minnesota Statutes 1996, section 10A.08, is 
  4.34  amended to read: 
  4.35     10A.08 [REPRESENTATION DISCLOSURE.] 
  4.36     Any public official who represents a client for a fee 
  5.1   before any individual, board, commission or agency that has rule 
  5.2   making authority in a hearing conducted under chapter 14, shall 
  5.3   disclose the official's participation in the action to the board 
  5.4   within 14 days after the appearance.  The board shall notify by 
  5.5   certified mail ~~or personal service~~ any public official who fails 
  5.6   to disclose the participation within 14 days after the 
  5.7   appearance.  If the public official fails to disclose the 
  5.8   participation within ~~seven~~ ten days ~~of~~ after this notice was 
  5.9   mailed, the board may impose a late filing fee of $5 per day, 
  5.10  not to exceed $100, commencing on the ~~eighth~~ 11th day 
  5.11  after ~~receiving~~ the notice was mailed. 
  5.12     Sec. 10.  Minnesota Statutes 1996, section 10A.09, 
  5.13  subdivision 7, is amended to read: 
  5.14     Subd. 7.  The board shall notify by certified mail ~~or~~ 
  5.15  ~~personal service~~ any individual who fails within the prescribed 
  5.16  time to file a statement of economic interest required by this 
  5.17  section.  If an individual fails to file a statement within 
  5.18  ~~seven~~ ten days after ~~receiving this~~ the notice was mailed, the 
  5.19  board may impose a late filing fee of $5 per day, not to exceed 
  5.20  $100, commencing on the ~~eighth~~ 11th day after ~~receiving~~ the 
  5.21  notice was mailed.  ~~The board shall further notify by certified~~ 
  5.22  ~~mail or personal service any individual who fails to file a~~ 
  5.23  ~~statement within 21 days after receiving a first notice that the~~ 
  5.24  ~~individual may be subject to a criminal penalty for failure to~~ 
  5.25  ~~file a statement.  An individual who fails to file a statement~~ 
  5.26  ~~within seven days after a second notice is guilty of a~~ 
  5.27  ~~misdemeanor.~~ 
  5.28     Sec. 11.  Minnesota Statutes 1996, section 10A.14, 
  5.29  subdivision 4, is amended to read: 
  5.30     Subd. 4.  The board shall notify by certified mail ~~or~~ 
  5.31  ~~personal service~~ any individual who fails to file a statement 
  5.32  required by this section.  If an individual fails to file a 
  5.33  statement within ~~seven~~ ten days after ~~receiving a~~ the notice 
  5.34  was mailed, the board may impose a late filing fee of $5 per 
  5.35  day, not to exceed $100, commencing with the ~~eighth~~ 11th day 
  5.36  after ~~receiving~~ the notice was mailed.  ~~The board shall further~~ 
  6.1   ~~notify by certified mail or personal service any individual who~~ 
  6.2   ~~fails to file a statement within 21 days after receiving a first~~ 
  6.3   ~~notice that such individual may be subject to a criminal penalty~~ 
  6.4   ~~for failure to file the report.  An individual who knowingly~~ 
  6.5   ~~fails to file the statement within seven days after receiving a~~ 
  6.6   ~~second notice from the board is guilty of a misdemeanor.~~ 
  6.7      Sec. 12.  Minnesota Statutes 1996, section 10A.15, 
  6.8   subdivision 3, is amended to read: 
  6.9      Subd. 3.  All transfers received by or on behalf of any 
  6.10  candidate, political committee or political fund shall be 
  6.11  deposited in an account designated "Campaign Fund of ..... (name 
  6.12  of candidate, committee or fund)."  All transfers shall be 
  6.13  deposited ~~promptly upon~~ within 30 days after receipt ~~and, except~~ 
  6.14  ~~for transfers received during the last three days of any~~ 
  6.15  ~~reporting period as described in section 10A.20, shall be~~ 
  6.16  ~~deposited during the reporting period in which they were~~ 
  6.17  ~~received.  Any transfer received during the last three days of a~~ 
  6.18  ~~reporting period shall be deposited within 72 hours of receipt~~ 
  6.19  and shall be reported as received during the reporting period 
  6.20  whether or not deposited within that period.  Any deposited 
  6.21  transfer may be returned to the contributor within 60 days of 
  6.22  deposit.  A transfer deposited and not returned within 60 days 
  6.23  of that deposit shall be deemed for the purposes of this 
  6.24  chapter, to be accepted by the candidate, political committee or 
  6.25  political fund. 
  6.26     Sec. 13.  Minnesota Statutes 1996, section 10A.15, 
  6.27  subdivision 5, is amended to read: 
  6.28     Subd. 5.  [LOBBYIST, POLITICAL COMMITTEE, OR POLITICAL FUND 
  6.29  REGISTRATION NUMBER ON CHECKS.] A ~~contribution made to a~~ 
  6.30  ~~candidate by a~~ lobbyist, political committee, or political fund 
  6.31  that makes a contribution to a candidate must show on the 
  6.32  contribution the name of the lobbyist, political committee, or 
  6.33  political fund and the number under which it is registered with 
  6.34  the board.  A candidate may rely upon the presence or absence of 
  6.35  a registration number in determining whether the contribution is 
  6.36  from a lobbyist and is not subject to a civil penalty for the 
  7.1   failure of a contributor to comply with this subdivision.  The 
  7.2   contributor is subject to a civil penalty imposed by the board.  
  7.3      Sec. 14.  Minnesota Statutes 1996, section 10A.15, is 
  7.4   amended by adding a subdivision to read: 
  7.5      Subd. 7.  [CONTRIBUTION FROM A JOINT ACCOUNT.] A 
  7.6   contribution given by a check drawn on a joint account may be 
  7.7   considered to be a contribution by the owners of the joint 
  7.8   account in equal shares if the contributor notifies the 
  7.9   recipient that is the contributor's intent.  If the amount of 
  7.10  the contribution is larger than the amount that may be accepted 
  7.11  from an individual, the notice must be in writing. 
  7.12     Sec. 15.  Minnesota Statutes 1997 Supplement, section 
  7.13  10A.20, subdivision 2, is amended to read: 
  7.14     Subd. 2.  [TIME FOR FILING.] The reports shall be filed 
  7.15  with the board on or before January 31 of each year and 
  7.16  additional reports shall be filed as required and in accordance 
  7.17  with clauses (a) ~~and~~, (b), and (c).  
  7.18     (a) In each year in which the name of the candidate is on 
  7.19  the ballot, the report of the principal campaign committee shall 
  7.20  be filed 15 days before a primary and ten days before a general 
  7.21  election, seven days before a special primary and a special 
  7.22  election, and ten days after a special election cycle.  The 
  7.23  report due after a special election may be filed on January 31 
  7.24  following the special election if the special election is held 
  7.25  not more than 60 days before that date.  
  7.26     (b) In each general election year political committees and 
  7.27  political funds other than principal campaign committees shall 
  7.28  file reports ~~ten~~ 15 days before a primary and ten days before a 
  7.29  general election.  
  7.30     If a scheduled filing date falls on a Saturday, Sunday or 
  7.31  legal holiday, the filing date shall be the next regular 
  7.32  business day. 
  7.33     (c) A political committee or political fund that makes 
  7.34  independent expenditures related to a special election shall 
  7.35  file reports on the expenditures seven days before the special 
  7.36  primary and special election and ten days after the special 
  8.1   election cycle. 
  8.2      Sec. 16.  Minnesota Statutes 1996, section 10A.20, 
  8.3   subdivision 3, is amended to read: 
  8.4      Subd. 3.  [CONTENTS OF REPORT.] Each report under this 
  8.5   section shall disclose: 
  8.6      (a) The amount of liquid assets on hand at the beginning of 
  8.7   the reporting period; 
  8.8      (b) The name, address and employer, or occupation if 
  8.9   self-employed, of each individual, political committee or 
  8.10  political fund who within the year has made one or more 
  8.11  transfers or donations in kind to the political committee or 
  8.12  political fund, including the purchase of tickets for all fund 
  8.13  raising efforts, which in aggregate exceed $100 for legislative 
  8.14  or statewide candidates or ballot questions, together with the 
  8.15  amount and date of each transfer or donation in kind, and the 
  8.16  aggregate amount of transfers and donations in kind within the 
  8.17  year from each source so disclosed.  A donation in kind shall be 
  8.18  disclosed at its fair market value.  An approved expenditure is 
  8.19  listed as a donation in kind.  A donation in kind is considered 
  8.20  consumed in the reporting period in which it is received.  The 
  8.21  names of contributors shall be listed in alphabetical order; 
  8.22     (c) The sum of contributions to the political committee or 
  8.23  political fund during the reporting period; 
  8.24     (d) Each loan made or received by the political committee 
  8.25  or political fund within the year in aggregate in excess of 
  8.26  $100, continuously reported until repaid or forgiven, together 
  8.27  with the name, address, occupation and the principal place of 
  8.28  business, if any, of the lender and any endorser and the date 
  8.29  and amount of the loan.  If any loan made to the principal 
  8.30  campaign committee of a candidate is forgiven at any time or 
  8.31  repaid by any entity other than that principal campaign 
  8.32  committee, it shall be reported as a contribution for the year 
  8.33  in which the loan was made; 
  8.34     (e) Each receipt in excess of $100 not otherwise listed 
  8.35  under clauses (b) to (d); 
  8.36     (f) The sum of all receipts of the political committee or 
  9.1   political fund during the reporting period; 
  9.2      (g) The name and address of each individual or association 
  9.3   to whom aggregate expenditures, including approved expenditures, 
  9.4   have been made by or on behalf of the political committee or 
  9.5   political fund within the year in excess of $100, together with 
  9.6   the amount, date and purpose of each expenditure and the name 
  9.7   and address of, and office sought by, each candidate on whose 
  9.8   behalf the expenditure was made, identification of the ballot 
  9.9   question which the expenditure is intended to promote or defeat, 
  9.10  and in the case of independent expenditures made in support of 
  9.11  or opposition to a candidate, the name, address and office 
  9.12  sought for each such candidate; 
  9.13     (h) The sum of all expenditures made by or on behalf of the 
  9.14  political committee or political fund during the reporting 
  9.15  period; 
  9.16     (i) The amount and nature of any advance of credit incurred 
  9.17  by the political committee or political fund, continuously 
  9.18  reported until paid or forgiven.  If any advance of credit 
  9.19  incurred by the principal campaign committee of a candidate is 
  9.20  forgiven at any time by the creditor or paid by any entity other 
  9.21  than that principal campaign committee, it shall be reported as 
  9.22  a donation in kind for the year in which the advance of credit 
  9.23  was incurred; 
  9.24     (j) The name and address of each political committee, 
  9.25  political fund, or principal campaign committee to which 
  9.26  aggregate transfers in excess of $100 have been made within the 
  9.27  year, together with the amount and date of each transfer; 
  9.28     (k) The sum of all transfers made by the political 
  9.29  committee, political fund, or principal campaign committee 
  9.30  during the reporting period; 
  9.31     (l) Except for contributions to a candidate or committee 
  9.32  for a candidate for office in a municipality as defined in 
  9.33  section 471.345, subdivision 1, the name and address of each 
  9.34  individual or association to whom aggregate noncampaign 
  9.35  disbursements in excess of $100 have been made within the year 
  9.36  by or on behalf of a principal campaign committee, political 
 10.1   committee, or political fund, together with the amount, date, 
 10.2   and purpose of each noncampaign disbursement; 
 10.3      (m) The sum of all noncampaign disbursements made within 
 10.4   the year by or on behalf of a principal campaign committee, 
 10.5   political committee, or political fund; 
 10.6      (n) The name and address of a nonprofit corporation that 
 10.7   provides administrative assistance to a political committee or 
 10.8   political fund as authorized by section 211B.15, subdivision 17, 
 10.9   together with the type of administrative assistance provided and 
 10.10  the aggregate fair market value of each type of assistance 
 10.11  provided to the political committee or political fund during the 
 10.12  reporting period; and 
 10.13     (o) A report filed under subdivision 2, clause (b), by a 
 10.14  political committee or political fund that is subject to 
 10.15  subdivision 14, must contain the information required by 
 10.16  subdivision 14, if the political committee or political fund has 
 10.17  solicited and caused others to make aggregate contributions 
 10.18  greater than $5,000 between January 1 of the general election 
 10.19  year and the end of the reporting period.  This disclosure 
 10.20  requirement is in addition to the report required by subdivision 
 10.21  14. 
 10.22     Sec. 17.  Minnesota Statutes 1996, section 10A.20, 
 10.23  subdivision 5, is amended to read: 
 10.24     Subd. 5.  [PREELECTION REPORTS.] In any statewide election 
 10.25  any loan, contribution, or contributions from any one source 
 10.26  totaling $2,000 or more, or in any legislative election totaling 
 10.27  more than $400, received between the last day covered in the 
 10.28  last report prior to an election and the election shall be 
 10.29  reported to the board in one of the following ways: 
 10.30     (1) in person within 48 hours after its receipt; 
 10.31     (2) by telegram or mailgram within 48 hours after its 
 10.32  receipt; ~~or~~ 
 10.33     (3) by ~~certified~~ first-class mail sent within 48 hours 
 10.34  after its receipt; 
 10.35     (4) by facsimile transmission received by the board within 
 10.36  48 hours after the contribution was received; or 
 11.1      (5) by any other method of electronic transmission approved 
 11.2   by the board and received by the board within 48 hours after the 
 11.3   contribution was received. 
 11.4      These loans and contributions must also be reported in the 
 11.5   next required report. 
 11.6      The 48-hour notice requirement does not apply with respect 
 11.7   to a primary if the statewide or legislative candidate is 
 11.8   unopposed in that primary. 
 11.9      Sec. 18.  Minnesota Statutes 1996, section 10A.20, 
 11.10  subdivision 6b, is amended to read: 
 11.11     Subd. 6b.  [INDEPENDENT EXPENDITURES; NOTICE.] (a) The 
 11.12  notice in this subdivision applies only to expenditures made in 
 11.13  a general election year after the deadline for the report due 15 
 11.14  days before the primary election and made before the general 
 11.15  election. 
 11.16     (b) Within ~~24~~ 48 hours after an individual, political 
 11.17  committee, or political fund makes ~~or becomes obligated by oral~~ 
 11.18  ~~or written agreement to make~~ an independent expenditure in 
 11.19  support of a candidate in excess of ~~$100, other than an~~ 
 11.20  ~~expenditure by an association targeted to inform solely its own~~ 
 11.21  ~~dues-paying members of the association's position on a candidate~~ 
 11.22  the amount that may be contributed to the candidate, or in 
 11.23  opposition to a candidate in excess of the amount that may be 
 11.24  contributed to the candidate's opponent, the individual, 
 11.25  political committee, or political fund shall file with the board 
 11.26  ~~an affidavit notifying the board~~ a notice of ~~the intent to make~~ 
 11.27  the independent expenditure and serve a copy of the ~~affidavit~~ 
 11.28  notice on each candidate in the affected race and on the 
 11.29  treasurer of the candidate's principal campaign committee.  
 11.30  The ~~affidavit~~ notice must contain the information with respect 
 11.31  to the expenditure that is required to be reported under 
 11.32  subdivision 3, paragraph ~~(g); except that if an expenditure is~~ 
 11.33  ~~reported before it is made, the notice must include a reasonable~~ 
 11.34  ~~estimate of the anticipated amount~~ (h).  Each new expenditure 
 11.35  requires a new notice. 
 11.36     ~~(b)~~ (c) A notice is not required for an expenditure by an 
 12.1   association targeted to inform solely its own members of the 
 12.2   association's position on a candidate.  
 12.3      (d) An individual or the treasurer of a political committee 
 12.4   or political fund who fails to give notice as required by this 
 12.5   subdivision, or who files a false ~~affidavit of~~ notice, is guilty 
 12.6   of a gross misdemeanor and is subject to a civil fine of up to 
 12.7   four times the amount of the independent expenditure stated in 
 12.8   the notice or of which notice was required, whichever is greater.
 12.9      Sec. 19.  Minnesota Statutes 1996, section 10A.20, 
 12.10  subdivision 12, is amended to read: 
 12.11     Subd. 12.  The board shall notify by certified mail ~~or~~ 
 12.12  ~~personal service~~ any individual who fails to file a statement 
 12.13  required by this section.  If an individual fails to file a 
 12.14  statement due January 31 within ~~seven~~ ten days after ~~receiving~~ a 
 12.15  notice was mailed, the board may impose a late filing fee of $5 
 12.16  per day, not to exceed $100, commencing on the ~~eighth~~ 11th day 
 12.17  after ~~receiving~~ notice was mailed.  If an individual fails to 
 12.18  file a statement due before any primary or election within three 
 12.19  days of the date due, regardless of whether the individual has 
 12.20  received any notice, the board may impose a late filing fee of 
 12.21  $50 per day, not to exceed $500, commencing on the fourth day 
 12.22  after the date the statement was due.  ~~The board shall further~~ 
 12.23  ~~notify by certified mail or personal service any individual who~~ 
 12.24  ~~fails to file any statement within 14 days after receiving a~~ 
 12.25  ~~first notice from the board that the individual may be subject~~ 
 12.26  ~~to a criminal penalty for failure to file a statement.  An~~ 
 12.27  ~~individual who knowingly fails to file the statement within~~ 
 12.28  ~~seven days after receiving a second notice from the board is~~ 
 12.29  ~~guilty of a misdemeanor.~~  The late filing fee may be paid out of 
 12.30  the assets of the political committee or fund.  
 12.31     Sec. 20.  Minnesota Statutes 1996, section 10A.20, is 
 12.32  amended by adding a subdivision to read: 
 12.33     Subd. 15.  [EQUITABLE RELIEF.] A candidate whose opponent 
 12.34  does not timely file the report due ten days before the general 
 12.35  election may petition the district court for immediate equitable 
 12.36  relief to enforce the filing requirement.  
 13.1      Sec. 21.  Minnesota Statutes 1996, section 10A.23, is 
 13.2   amended to read: 
 13.3      10A.23 [CHANGES AND CORRECTIONS.] 
 13.4      Subdivision 1.  [REPORT.] Any material changes in 
 13.5   information previously submitted and any corrections to a report 
 13.6   or statement shall be reported in writing to the board within 
 13.7   ten days following the date of the event prompting the change or 
 13.8   the date upon which the person filing became aware of the 
 13.9   inaccuracy.  The change or correction shall identify the form 
 13.10  and the paragraph containing the information to be changed or 
 13.11  corrected.  If the board determines that a report or statement 
 13.12  is inaccurate or incomplete, the board shall notify by certified 
 13.13  mail the person who filed the report or statement of the need to 
 13.14  correct it. 
 13.15     Subd. 2.  [PENALTY.] If the person fails to file a 
 13.16  corrected report or statement within ten days after:  (1) the 
 13.17  event prompting the change; (2) the date upon which the person 
 13.18  filing became aware of the inaccuracy; or (3) the date the 
 13.19  notice was mailed, the board may impose a late filing fee at the 
 13.20  rate of $5 a day, not to exceed $100, commencing with the 11th 
 13.21  day. 
 13.22     Any person who willfully fails to report a material change 
 13.23  or correction is guilty of a gross misdemeanor. 
 13.24     Sec. 22.  Minnesota Statutes 1996, section 10A.31, 
 13.25  subdivision 7, is amended to read: 
 13.26     Subd. 7.  (a) Within two weeks after certification by the 
 13.27  state canvassing board of the results of the general election, 
 13.28  the board shall distribute the available funds in the general 
 13.29  account, as certified by the commissioner of revenue on November 
 13.30  1 and according to allocations set forth in subdivision 5, in 
 13.31  equal amounts to all candidates for each statewide office who 
 13.32  received at least five percent of the votes cast in the general 
 13.33  election for that office, and to all candidates for legislative 
 13.34  office who received at least ten percent of the votes cast in 
 13.35  the general election for the specific office for which they were 
 13.36  candidates, provided that the public subsidy under this 
 14.1   subdivision may not be paid in an amount that would cause the 
 14.2   sum of the public subsidy paid from the party account plus the 
 14.3   public subsidy paid from the general account and the public 
 14.4   subsidy paid to match independent expenditures to exceed 50 
 14.5   percent of the expenditure limit for the candidate.  If a 
 14.6   candidate is entitled to receive an opponent's share of the 
 14.7   general account public subsidy under section 10A.25, subdivision 
 14.8   10, the opponent's share must be excluded in calculating the 50 
 14.9   percent limit.  Money from the general account not paid to a 
 14.10  candidate because of the 50 percent limit must be distributed 
 14.11  equally among all other qualifying candidates for the same 
 14.12  office until all have reached the 50 percent limit or the 
 14.13  balance in the general account is exhausted.  The board shall 
 14.14  not use the information contained in the report of the principal 
 14.15  campaign committee of any candidate due ten days before the 
 14.16  general election for the purpose of reducing the amount due that 
 14.17  candidate from the general account. 
 14.18     (b) If a candidate has not yet filed a campaign finance 
 14.19  report required by section 10A.20, subdivision 2, or the 
 14.20  candidate owes money to the board, the board shall not pay a 
 14.21  public subsidy to the candidate until the report has been filed 
 14.22  or the debt has been paid, whichever applies.  
 14.23     Sec. 23.  Minnesota Statutes 1996, section 10A.31, 
 14.24  subdivision 10, is amended to read: 
 14.25     Subd. 10.  [DISTRIBUTION.] In the event that on the date of 
 14.26  either certification by the commissioner of revenue as provided 
 14.27  in subdivisions 6 and 7, less than 98 percent of the tax returns 
 14.28  have been processed, the commissioner of revenue shall certify 
 14.29  to the board by December 1 the amount accumulated in each 
 14.30  account since the previous certification.  By December 15, the 
 14.31  board shall distribute to each candidate according to the 
 14.32  allocations as provided in subdivision 5 the amounts to which 
 14.33  the candidates are entitled in the form of checks made "payable 
 14.34  to the campaign fund of ......(name of candidate)......."  A 
 14.35  check may include as an additional payee a financial institution 
 14.36  named by the candidate in a notice filed with the board at least 
 15.1   ten days before the payment was due to be made.  Any money 
 15.2   accumulated after the final certification shall be maintained in 
 15.3   the respective accounts for distribution in the next general 
 15.4   election year. 
 15.5      Sec. 24.  Minnesota Statutes 1996, section 10A.315, is 
 15.6   amended to read: 
 15.7      10A.315 [SPECIAL ELECTION SUBSIDY.] 
 15.8      (a) Each eligible candidate for a legislative office in a 
 15.9   special election must be paid a public subsidy equal to the sum 
 15.10  of: 
 15.11     (1) the party account money at the last general election 
 15.12  for the candidate's party for the office the candidate is 
 15.13  seeking; and 
 15.14     (2) the general account money paid to candidates for the 
 15.15  same office at the last general election.  
 15.16     (b) If the filing period for the special election coincides 
 15.17  with the filing period for the general election, the candidate 
 15.18  must meet the matching requirements of section 10A.323 and the 
 15.19  special election subsidy must be distributed in the same manner 
 15.20  as money is distributed to legislative candidates in a general 
 15.21  election. 
 15.22     (c) If the filing period for the special election does not 
 15.23  coincide with the filing period for the general election, the 
 15.24  procedures in this paragraph apply.  A candidate who wishes to 
 15.25  receive this public subsidy must submit a signed agreement under 
 15.26  section 10A.322 to the board not later than the day after the 
 15.27  candidate files the affidavit of candidacy or nominating 
 15.28  petition for the office.  The candidate must meet the matching 
 15.29  requirements of section 10A.323, except that the candidate may 
 15.30  count contributions received during the two months immediately 
 15.31  preceding the special election, other than contributions the 
 15.32  candidate has previously included on an affidavit of match for 
 15.33  another election, and the amount of match required is 
 15.34  one-quarter of the amount stated in section 10A.323.  The 
 15.35  special election subsidy must be distributed in the same manner 
 15.36  as money in the party and general accounts is distributed to 
 16.1   legislative candidates in a general election. 
 16.2      (d) The amount necessary to make the payments required by 
 16.3   this subdivision is appropriated from the general fund to the 
 16.4   ~~state treasurer~~ board. 
 16.5      Sec. 25.  Minnesota Statutes 1996, section 10A.322, 
 16.6   subdivision 1, is amended to read: 
 16.7      Subdivision 1.  [AGREEMENT BY CANDIDATE.] (a) As a 
 16.8   condition of receiving a public subsidy, a candidate shall sign 
 16.9   and file with the board a written agreement in which the 
 16.10  candidate agrees that the candidate will comply with sections 
 16.11  10A.25 and 10A.324. 
 16.12     (b) Before the first day of filing for office, the board 
 16.13  shall forward agreement forms to all filing officers.  The board 
 16.14  shall also provide agreement forms to candidates on request at 
 16.15  any time.  The candidate may sign an agreement and submit it to 
 16.16  the filing officer on the day of filing an affidavit of 
 16.17  candidacy or petition to appear on the ballot, in which case the 
 16.18  filing officer shall without delay forward signed agreements to 
 16.19  the board.  Alternatively, the candidate may submit the 
 16.20  agreement directly to the board at any time before ~~September~~ 
 16.21  August 1 preceding the general election.  An agreement may not 
 16.22  be filed after that date.  An agreement once filed may not be 
 16.23  rescinded. 
 16.24     (c) The board shall forward a copy of any agreement signed 
 16.25  under this subdivision to the commissioner of revenue.  
 16.26     (d) Notwithstanding any provisions of this section, when a 
 16.27  vacancy occurs that will be filled by means of a special 
 16.28  election and the filing period does not coincide with the filing 
 16.29  period for the general election, a candidate may sign and submit 
 16.30  a spending limit agreement at any time before the deadline for 
 16.31  submission of a signed agreement under section 10A.315. 
 16.32     (e) A candidate who fills a vacancy in nomination that 
 16.33  occurs after the deadline in paragraph (b) may file a spending 
 16.34  limit agreement no later than the day after the candidate fills 
 16.35  the vacancy.  
 16.36     Sec. 26.  Minnesota Statutes 1996, section 10A.322, 
 17.1   subdivision 4, is amended to read: 
 17.2      Subd. 4.  [REFUND RECEIPT FORMS; PENALTY.] The board shall 
 17.3   make available to a political party as defined in section 
 17.4   290.06, subdivision 23, on request and to any candidate for whom 
 17.5   an agreement under this section is effective, a supply of 
 17.6   official refund receipt forms that state in boldface type that 
 17.7   (1) a contributor who is given a receipt form is eligible to 
 17.8   claim a refund as provided in section 290.06, subdivision 23, 
 17.9   and (2) if the contribution is to a candidate, that the 
 17.10  candidate has signed an agreement to limit campaign expenditures 
 17.11  as provided in this section.  The forms must provide duplicate 
 17.12  copies of the receipt to be attached to the contributor's 
 17.13  claim.  A candidate who does not sign an agreement under this 
 17.14  section and who willfully issues an official refund receipt form 
 17.15  or a facsimile of one to any of the candidate's contributors is 
 17.16  guilty of a misdemeanor.  A principal campaign committee or 
 17.17  party unit shall return to the board with its termination report 
 17.18  or destroy any official receipt forms that have not been issued. 
 17.19     Sec. 27.  Minnesota Statutes 1996, section 10A.324, 
 17.20  subdivision 1, is amended to read: 
 17.21     Subdivision 1.  [WHEN RETURN REQUIRED.] A candidate shall 
 17.22  return all or a portion of the public subsidy received from the 
 17.23  state elections campaign fund or the public matching subsidy 
 17.24  received under section 10A.315, under the circumstances in this 
 17.25  section or section 10A.25, subdivision 11. 
 17.26     (a) To the extent that the amount of public subsidy 
 17.27  received by the candidate exceeds the expenditure limits for the 
 17.28  office held or sought, as provided in section 10A.25 and as 
 17.29  adjusted by section 10A.255, the treasurer of the candidate's 
 17.30  principal campaign committee shall return the excess to the 
 17.31  board. 
 17.32     (b) To the extent that the amount of public subsidy 
 17.33  received exceeds the aggregate of:  (1) actual expenditures made 
 17.34  by the principal campaign committee of the candidate; and (2) 
 17.35  approved expenditures made on behalf of the candidate, the 
 17.36  treasurer of the candidate's principal campaign committee shall 
 18.1   return an amount equal to the difference to the board. 
 18.2      (c) If the board determines that a candidate has filed an 
 18.3   affidavit of matching contributions under section 10A.323 that 
 18.4   is not supported by the campaign finance reports filed by the 
 18.5   candidate under section 10A.20, the board shall notify the 
 18.6   treasurer of the candidate's principal campaign committee, 
 18.7   withhold any public subsidy not yet paid to the candidate, and 
 18.8   demand return of any public subsidy paid to the candidate for 
 18.9   that election cycle.  The treasurer shall return the entire 
 18.10  public subsidy to the board.  
 18.11     Sec. 28.  Minnesota Statutes 1996, section 10A.34, is 
 18.12  amended to read: 
 18.13     10A.34 [REMEDIES.] 
 18.14     Subdivision 1.  [PERSONAL LIABILITY.] A person charged with 
 18.15  a duty under ~~sections 10A.02 to 10A.34 shall be~~ this chapter is 
 18.16  personally liable for the penalty for failing to discharge it. 
 18.17     Subd. 1a.  [RECOVERY OF MONEY.] The board may bring an 
 18.18  action in the district court in Ramsey county to recover any 
 18.19  late filing fee or civil penalty imposed or public subsidy paid 
 18.20  pursuant to any provision of this chapter.  All money recovered 
 18.21  shall be deposited in the general fund of the state. 
 18.22     Subd. 2.  [INJUNCTION.] The board or a county attorney may 
 18.23  seek an injunction in the district court to enforce ~~the~~ 
 18.24  ~~provisions of sections 10A.02 to 10A.34~~ this chapter. 
 18.25     Subd. 3.  [CIVIL PENALTY.] Unless otherwise provided, a 
 18.26  violation of ~~sections 10A.02 to 10A.34~~ this chapter is not a 
 18.27  crime, but is subject to a civil penalty imposed by the board in 
 18.28  an amount up to $300. 
 18.29     Subd. 4.  [AWARD OF COSTS.] If the board prevails in an 
 18.30  action to enforce this chapter, the board may request and the 
 18.31  court may award to the board its costs, disbursements, 
 18.32  reasonable attorney fees, and witness fees.  
 18.33     Subd. 5.  [PENALTY FOR FALSE COMPLAINTS.] A person who 
 18.34  knowingly makes a false or bad faith complaint or report of an 
 18.35  alleged violation of this chapter is subject to a civil penalty 
 18.36  imposed by the board of up to $300.  
 19.1      Sec. 29.  Minnesota Statutes 1996, section 200.02, is 
 19.2   amended by adding a subdivision to read: 
 19.3      Subd. 23.  [PARTY UNIT.] "Party unit" means the state party 
 19.4   organization; the party organization within a house of the 
 19.5   legislature; or the party organization within a congressional 
 19.6   district, county, legislative district, municipality, or 
 19.7   precinct. 
 19.8      Sec. 30.  Minnesota Statutes 1996, section 211A.02, 
 19.9   subdivision 2, is amended to read: 
 19.10     Subd. 2.  [INFORMATION REQUIRED.] The report to be filed by 
 19.11  a candidate or committee must include:  
 19.12     (1) the name of the candidate or ballot question; 
 19.13     (2) the name and address of the person responsible for 
 19.14  filing the report; 
 19.15     (3) the total amount of receipts and expenditures for the 
 19.16  period from the last previous report to five days before the 
 19.17  current report is due; 
 19.18     (4) the purpose for each expenditure; and 
 19.19     (5) the name of any individual or committee that during the 
 19.20  year has made one or more contributions that in the aggregate 
 19.21  are ~~equal to or greater~~ more than ~~$500~~ $100.  
 19.22     Sec. 31.  Minnesota Statutes 1997 Supplement, section 
 19.23  211A.12, is amended to read: 
 19.24     211A.12 [CONTRIBUTION LIMITS.] 
 19.25     Subdivision 1.  [INDIVIDUALS AND COMMITTEES.] A candidate 
 19.26  or a candidate's committee may not accept aggregate 
 19.27  contributions made or delivered by an individual or committee in 
 19.28  excess of $300 in an election year for the office sought and 
 19.29  $100 in other years; except that a candidate or a candidate's 
 19.30  committee for an office whose territory has a population over 
 19.31  100,000 may not accept aggregate contributions made or delivered 
 19.32  by an individual or committee in excess of $500 in an election 
 19.33  year for the office sought and $100 in other years.  
 19.34     The following deliveries are not subject to the bundling 
 19.35  limitation in this section:  
 19.36     (1) delivery of contributions collected by a member of the 
 20.1   candidate's committee, such as a block worker or a volunteer who 
 20.2   hosts a fundraising event, to the committee's treasurer; and 
 20.3      (2) a delivery made by an individual on behalf of the 
 20.4   individual's spouse. 
 20.5      Notwithstanding sections 211A.02, subdivision 3, and 
 20.6   410.21, this section supersedes any home rule charter.  
 20.7      Subd. 2.  [POLITICAL PARTIES.] A candidate and a 
 20.8   candidate's committee together may accept contributions from 
 20.9   political party units in aggregate up to ten times the amount 
 20.10  that may be contributed to the candidate as set forth in 
 20.11  subdivision 1. 
 20.12     Sec. 32.  [211A.125] [MULTICANDIDATE POLITICAL PARTY 
 20.13  EXPENDITURES.] 
 20.14     The following expenditures by a party unit, or two or more 
 20.15  party units acting together, are not considered contributions to 
 20.16  a candidate for the purposes of section 211A.12 and must not be 
 20.17  allocated to candidates under section 211A.02, subdivision 2: 
 20.18     (1) expenditures on behalf of candidates of that party 
 20.19  generally without referring to any of them specifically in a 
 20.20  published, posted, or broadcast advertisement; 
 20.21     (2) expenditures for the preparation, display, mailing, or 
 20.22  other distribution of an official party sample ballot listing 
 20.23  the names of three or more individuals whose names are to appear 
 20.24  on the ballot; 
 20.25     (3) expenditures for a telephone conversation that includes 
 20.26  the names of three or more individuals whose names are to appear 
 20.27  on the ballot; 
 20.28     (4) expenditures for a political party fundraising effort 
 20.29  on behalf of three or more candidates; or 
 20.30     (5) expenditures for party committee staff services that 
 20.31  benefit three or more candidates. 
 20.32     Sec. 33.  Minnesota Statutes 1996, section 211B.02, is 
 20.33  amended to read: 
 20.34     211B.02 [FALSE CLAIM OF SUPPORT.] 
 20.35     A person or candidate may not knowingly make, directly or 
 20.36  indirectly, a false claim stating or implying that a candidate 
 21.1   or ballot question has the support or endorsement of a major 
 21.2   political party or party unit or of an organization.  A person 
 21.3   or candidate may not state in written campaign material that the 
 21.4   candidate or ballot question has the support or endorsement of 
 21.5   an individual or organization without first getting written 
 21.6   permission from the individual or organization to do so. 
 21.7      Sec. 34.  Minnesota Statutes 1997 Supplement, section 
 21.8   290.06, subdivision 23, is amended to read: 
 21.9      Subd. 23.  [REFUND OF CONTRIBUTIONS TO POLITICAL PARTIES 
 21.10  AND CANDIDATES.] (a) A taxpayer may claim a refund equal to the 
 21.11  amount of the taxpayer's contributions made in the calendar year 
 21.12  to candidates and to any political party.  The maximum refund 
 21.13  for an individual must not exceed $50 and, for a married couple 
 21.14  filing jointly, must not exceed $100.  A refund of a 
 21.15  contribution is allowed only if the taxpayer files a form 
 21.16  required by the commissioner and attaches to the form a copy of 
 21.17  an official refund receipt form issued by the candidate or party 
 21.18  and signed by the candidate, the treasurer of the candidate's 
 21.19  principal campaign committee, or the party chair, after the 
 21.20  contribution was received.  The receipt forms must be numbered, 
 21.21  and the data on the receipt that are not public must be made 
 21.22  available to the campaign finance and public disclosure board 
 21.23  upon its request.  A claim must be filed with the commissioner 
 21.24  not sooner than January 1 of the calendar year in which the 
 21.25  contribution is made and no later than April 15 of the calendar 
 21.26  year following the calendar year in which the contribution is 
 21.27  made.  A taxpayer may file only one claim per calendar year.  
 21.28  Amounts paid by the commissioner after June 15 of the calendar 
 21.29  year following the calendar year in which the contribution is 
 21.30  made must include interest at the rate specified in section 
 21.31  270.76. 
 21.32     (b) No refund is allowed under this subdivision for a 
 21.33  contribution to any candidate unless the candidate: 
 21.34     (1) has signed an agreement to limit campaign expenditures 
 21.35  as provided in section 10A.322 or 10A.43; 
 21.36     (2) is seeking an office for which voluntary spending 
 22.1   limits are specified in section 10A.25 or 10A.43; and 
 22.2      (3) has designated a principal campaign committee.  
 22.3      This subdivision does not limit the campaign expenditure of 
 22.4   a candidate who does not sign an agreement but accepts a 
 22.5   contribution for which the contributor improperly claims a 
 22.6   refund.  
 22.7      (c) For purposes of this subdivision, "political party" 
 22.8   means a major political party as defined in section 200.02, 
 22.9   subdivision 7, or a minor political party qualifying for 
 22.10  inclusion on the income tax or property tax refund form under 
 22.11  section 10A.31, subdivision 3a.  
 22.12     A "major or minor party" includes the aggregate of the 
 22.13  party organization within each house of the legislature, the 
 22.14  state party organization, and the party organization within 
 22.15  congressional districts, counties, and legislative districts~~,~~ 
 22.16  ~~municipalities, and precincts~~.  
 22.17     "Candidate" means a congressional candidate as defined in 
 22.18  section 10A.41, subdivision 4, or a candidate as defined in 
 22.19  section 10A.01, subdivision 5, except a candidate for judicial 
 22.20  office.  
 22.21     "Contribution" means a gift of money. 
 22.22     (d) The commissioner shall make copies of the form 
 22.23  available to the public and candidates upon request. 
 22.24     (e) The following data collected or maintained by the 
 22.25  commissioner under this subdivision are private:  the identities 
 22.26  of individuals claiming a refund, the identities of candidates 
 22.27  to whom those individuals have made contributions, and the 
 22.28  amount of each contribution.  
 22.29     (f) The commissioner shall report to the campaign finance 
 22.30  and public disclosure board by August 1 of each year a summary 
 22.31  showing the total number and aggregate amount of political 
 22.32  contribution refunds made on behalf of each candidate and each 
 22.33  political party.  These data are public. 
 22.34     (g) The amount necessary to pay claims for the refund 
 22.35  provided in this section is appropriated from the general fund 
 22.36  to the commissioner of revenue. 
 23.1      Sec. 35.  [TRANSITION.] 
 23.2      If the ethical practices board or the board of campaign 
 23.3   finance and public disclosure gave an official refund receipt 
 23.4   form under Minnesota Statutes, section 10A.322, subdivision 1, 
 23.5   before February 10, 1998, to a political party as defined in 
 23.6   Minnesota Statutes, section 10A.01, subdivision 17, and the 
 23.7   political party gave the receipt to an individual for a 
 23.8   contribution given by the individual to the political party 
 23.9   before January 1, 1999, the individual is eligible to receive a 
 23.10  political contribution refund, notwithstanding that the 
 23.11  political party was not a political party as defined in 
 23.12  Minnesota Statutes, section 290.06, subdivision 23. 
 23.13     Sec. 36.  [REPEALER.] 
 23.14     Minnesota Statutes 1996, section 10A.09, subdivision 3, is 
 23.15  repealed. 
 23.16     Sec. 37.  [EFFECTIVE DATE.] 
 23.17     This act is effective August 1, 1998, except that section 
 23.18  30 is effective January 1, 1999, and section 35 is effective the 
 23.19  day following final enactment.  Section 33 applies to offenses 
 23.20  committed on and after August 1, 1998.