Bill Text: MN HF2531 | 2013-2014 | 88th Legislature | Engrossed
NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Campaign finance board duties modified, rulemaking required, online electronic records systems authorized, board authorized to request reconciliation information, penalties authorized, definitions and fee amounts modified, reporting and filing requirements modified, various technical and clarifying changes made, data classifications provided, and statements of economic interest modified.
Spectrum: Partisan Bill (Democrat 3-0)
Status: (Passed) 2014-05-21 - Secretary of State Chapter 309 [HF2531 Detail]
Download: Minnesota-2013-HF2531-Engrossed.html
Bill Title: Campaign finance board duties modified, rulemaking required, online electronic records systems authorized, board authorized to request reconciliation information, penalties authorized, definitions and fee amounts modified, reporting and filing requirements modified, various technical and clarifying changes made, data classifications provided, and statements of economic interest modified.
Spectrum: Partisan Bill (Democrat 3-0)
Status: (Passed) 2014-05-21 - Secretary of State Chapter 309 [HF2531 Detail]
Download: Minnesota-2013-HF2531-Engrossed.html
1.2relating to campaign finance; making various technical changes; authorizing the
1.3board to request reconciliation information; authorizing certain fees; modifying
1.4certain definitions and fee amounts; imposing penalties;amending Minnesota
1.5Statutes 2012, sections 10A.01, subdivisions 5, 26; 10A.02, subdivision 11a;
1.610A.025, by adding a subdivision; 10A.09, subdivisions 1, 5, by adding a
1.7subdivision; 10A.12, subdivision 5; 10A.255, subdivision 3; 10A.28, subdivision
1.84; 211A.02, subdivision 2; Minnesota Statutes 2013 Supplement, sections
1.910A.01, subdivision 10; 10A.02, subdivision 11; 10A.025, subdivision 4;
1.1010A.20, subdivisions 2, 5; repealing Minnesota Statutes 2012, section 10A.09,
1.11subdivision 8.
1.12BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.13 Section 1. Minnesota Statutes 2012, section 10A.01, subdivision 5, is amended to read:
1.14 Subd. 5. Associated business. "Associated business" means an association,
1.15corporation, partnership, limited liability company, limited liability partnership, or other
1.16organized legal entity from which the individual receives compensation in excess of $50,
1.17except for actual and reasonable expenses, in any month as a director, officer, owner,
1.18member, partner, employer or employee, or whose securities the individual holds worth
1.19more than $2,500or more at fair market value.
1.20 Sec. 2. Minnesota Statutes 2013 Supplement, section 10A.01, subdivision 10, is
1.21amended to read:
1.22 Subd. 10. Candidate. "Candidate" means an individual who seeks nomination or
1.23election as a state constitutional officer, legislator, or judge. An individual is deemed
1.24to seek nomination or election if the individual has taken the action necessary under
1.25the law of this state to qualify for nomination or election, has received contributions or
1.26made expenditures in excess of$100 $750, or has given implicit or explicit consent for
2.1any other person to receive contributions or make expenditures in excess of$100 $750,
2.2for the purpose of bringing about the individual's nomination or election. A candidate
2.3remains a candidate until the candidate's principal campaign committee is dissolved as
2.4provided in section10A.243 .
2.5 Sec. 3. Minnesota Statutes 2012, section 10A.01, subdivision 26, is amended to read:
2.6 Subd. 26. Noncampaign disbursement. "Noncampaign disbursement" means
2.7a purchase or payment of money or anything of value made, or an advance of credit
2.8incurred, or a donation in kind received, by a principal campaign committee for any of
2.9the following purposes:
2.10 (1) payment for accounting and legal services;
2.11 (2) return of a contribution to the source;
2.12 (3) repayment of a loan made to the principal campaign committee by that committee;
2.13 (4) return of a public subsidy;
2.14 (5) payment for food, beverages, and necessary utensils and supplies, entertainment,
2.15and facility rental for a fund-raising event;
2.16 (6) services for a constituent by a member of the legislature or a constitutional officer
2.17in the executive branch, including the costs of preparing and distributing a suggestion or
2.18idea solicitation to constituents, performed from the beginning of the term of office to
2.19adjournment sine die of the legislature in the election year for the office held, and half
2.20the cost of services for a constituent by a member of the legislature or a constitutional
2.21officer in the executive branch performed from adjournment sine die to 60 days after
2.22adjournment sine die;
2.23 (7) payment for food and beverages consumed by a candidate or volunteers while
2.24they are engaged in campaign activities;
2.25 (8) payment for food or a beverage consumed while attending a reception or meeting
2.26directly related to legislative duties;
2.27 (9) payment of expenses incurred by elected or appointed leaders of a legislative
2.28caucus in carrying out their leadership responsibilities, provided that expenses claimed
2.29under this clause for travel outside of the United States must be documented through
2.30submission of receipts, itineraries, itemized expense lists, and other evidence as may be
2.31required by the board, and must be limited to one trip per calendar year;
2.32 (10) payment by a principal campaign committee of the candidate's expenses for
2.33serving in public office, other than for personal uses, provided that expenses claimed under
2.34this clause for travel outside of the United States must be documented through submission
3.1of receipts, itineraries, itemized expense lists, and other evidence as may be required by
3.2the board, and must be limited to one trip per calendar year;
3.3 (11) costs of child care for the candidate's children when campaigning;
3.4 (12) fees paid to attend a campaign school;
3.5 (13) costs of a postelection party during the election year when a candidate's name
3.6will no longer appear on a ballot or the general election is concluded, whichever occurs first;
3.7 (14) interest on loans paid by a principal campaign committee on outstanding loans;
3.8 (15) filing fees;
3.9 (16) post-general election holiday or seasonal cards, thank-you notes, or
3.10advertisements in the news media mailed or published prior to the end of the election cycle;
3.11 (17) the cost of campaign material purchased to replace defective campaign material,
3.12if the defective material is destroyed without being used;
3.13 (18) contributions to a party unit;
3.14 (19) payments for funeral gifts or memorials;
3.15 (20) the cost of a magnet less than six inches in diameter containing legislator
3.16contact information and distributed to constituents;
3.17 (21) costs associated with a candidate attending a political party state or national
3.18convention in this state;
3.19 (22) other purchases or payments specified in board rules or advisory opinions as
3.20being for any purpose other than to influence the nomination or election of a candidate or
3.21to promote or defeat a ballot question; and
3.22(23) costs paid to a third party for processing contributions made by a credit card,
3.23debit card, or electronic check.
3.24 The board must determine whether an activity involves a noncampaign disbursement
3.25within the meaning of this subdivision.
3.26 A noncampaign disbursement is considered to be made in the year in which the
3.27candidate made the purchase of goods or services or incurred an obligation to pay for
3.28goods or services.
3.29 Sec. 4. Minnesota Statutes 2013 Supplement, section 10A.02, subdivision 11, is
3.30amended to read:
3.31 Subd. 11. Violations; enforcement. (a) The board may investigate any alleged
3.32violation of this chapter. The board may also investigate an alleged violation of section
3.33211B.04
,
211B.12 , or
211B.15 by or related to a candidate, treasurer, principal campaign
3.34committee, political committee, political fund, or party unit, as those terms are defined in
3.35this chapter. The board must investigate any violation that is alleged in a written complaint
4.1filed with the board and must within 30 days after the filing of the complaint make findings
4.2and conclusions as to whether a violation has occurred and must issue an order, except that
4.3if the complaint alleges a violation of section10A.25 or
10A.27 , the board must either enter
4.4a conciliation agreement or make public findings and conclusions as to whether a violation
4.5has occurred and must issue an order within 60 days after the filing of the complaint. The
4.6deadline for action on a written complaint may be extended by majority vote of the board.
4.7(b) The board may bring legal actions or negotiate settlements in its own name to
4.8recover money raised from contributions subject to the conditions in this paragraph.
4.9(1) No action may be commenced unless the board has made a formal determination,
4.10after an investigation, that the money was raised for political purposes as defined in
4.11section211B.01, subdivision 6 , and that the money was used for purposes not permitted
4.12under this chapter or under section211B.12 .
4.13(2) Prior to commencing an action, the board must give the association whose money
4.14was misused written notice by certified mail of its intent to take action under this subdivision
4.15and must give the association a reasonable opportunity, for a period of not less than 90
4.16days, to recover the money without board intervention. This period must be extended
4.17for at least an additional 90 days for good cause if the association is actively pursuing
4.18recovery of the money. The board may not commence a legal action under this subdivision
4.19if the association has commenced a legal action for the recovery of the same money.
4.20(3) Any funds recovered under this subdivision must be deposited in a campaign
4.21finance recovery account in the special revenue fund and are appropriated as follows:
4.22(i) an amount equal to the board's actual costs and disbursements in the action,
4.23including court reporter fees for depositions taken in the course of an investigation, is
4.24appropriated to the board for its operations;
4.25(ii) an amount equal to the reasonable value of legal services provided by the Office
4.26of the Attorney General in the recovery matter, calculated on the same basis as is used
4.27for charging legal fees to state agencies, is appropriated to the attorney general for the
4.28attorney general's operations; and
4.29(iii) any remaining balance is appropriated to the board for distribution to the
4.30association to which the money was originally contributed.
4.31(4) Notwithstanding clause (3), item (iii), if the candidate of a principal campaign
4.32committee is the person who used the association's money for illegal purposes, or if the
4.33association or political fund whose money was misused is no longer registered with the
4.34board, any money remaining after the payments specified in clause (3), items (i) and (ii),
4.35must be transferred to the general account of the state elections campaign account.
5.1(5) Any action by the board under this paragraph must be commenced not later than
5.2four years after the improper use of money is shown on a report filed with the board or the
5.3board has actual knowledge of improper use. No action may be commenced under this
5.4paragraph for improper uses disclosed on reports for calendar years prior to 2011.
5.5(6) If the board prevails in an action brought under this subdivision and the court
5.6makes a finding that the misuse of funds was willful, the court may enter judgment in favor
5.7of the board and against the person misusing the funds in the amount of the misused funds.
5.8(c) Within a reasonable time after beginning an investigation of an individual
5.9or association, the board must notify the individual or association of the fact of the
5.10investigation. The board must not make a findingof whether there is probable cause to
5.11believe that a violation has occurred without notifying the individual or association of the
5.12nature of the allegations and affording an opportunity to answer those allegations.
5.13(d) A hearing before the board or action of the board concerning a complaint or
5.14investigation other thana finding concerning probable cause findings, conclusions, and
5.15orders or a conciliation agreement is confidential. Until the board makes a public finding
5.16concerning probable cause or enters a conciliation agreement:
5.17(1) a member, employee, or agent of the board must not disclose to an individual
5.18information obtained by that member, employee, or agent concerning a complaint or
5.19investigation except as required to carry out the investigation or take action in the matter
5.20as authorized by this chapter; and
5.21(2) an individual who discloses information contrary to this subdivision is subject
5.22to a civil penalty imposed by the board of up to $1,000.
5.23(e) A matter that is under the board's jurisdiction pursuant to this section and that
5.24may result in a criminal offense must be finally disposed of by the board before the alleged
5.25violation may be prosecuted by a city or county attorney.
5.26 Sec. 5. Minnesota Statutes 2012, section 10A.02, subdivision 11a, is amended to read:
5.27 Subd. 11a. Data privacy. If, after making a public findingconcerning probable
5.28cause or entering a conciliation agreement, the board determines that the record of the
5.29investigation contains statements, documents, or other matter that, if disclosed, would
5.30unfairly injure the reputation of an innocent individual, the board may:
5.31(1) retain the statement, document, or other matter as a private record, as defined in
5.32section13.02, subdivision 12 , for a period of one year, after which it must be destroyed; or
5.33(2) return the statement, document, or other matter to the individual who supplied
5.34it to the board.
6.1 Sec. 6. Minnesota Statutes 2013 Supplement, section 10A.025, subdivision 4, is
6.2amended to read:
6.3 Subd. 4. Changes and corrections. Material changes in information previously
6.4submitted and corrections to a report or statement must be reported in writing to the board
6.5within ten days following the date of the event prompting the change or the date upon
6.6which the person filing became aware of the inaccuracy. The change or correction must
6.7identify the form and the paragraph containing the information to be changed or corrected.
6.8A person who willfully fails to report a material change or correction is subject to a
6.9civil penalty imposed by the board of up to $3,000. A willful violation of this subdivision
6.10is a gross misdemeanor.
6.11The board must send a written noticeby certified mail to any individual who fails to
6.12file a report required by this subdivision. If the individual fails to file the required report
6.13within ten business days after the notice was sent, the board may impose a late filing fee of
6.14$5 $25 per day up to $100 $1,000 starting on the 11th day after the notice was sent. The
6.15boardmust may send an additional notice by certified mail to an individual who fails to
6.16file a report within14 ten business days after the first notice was sent by the board that.
6.17The certified notice must state that if the individual does not file the requested report
6.18within ten business days after the certified notice was sent, the individual may be subject
6.19to a civil penalty for failure to file a report. An individual who fails to file a report required
6.20by this subdivision withinseven ten business days after the second certified notice was
6.21sent by the board is subject to a civil penalty imposed by the board of up to $1,000.
6.22 Sec. 7. Minnesota Statutes 2012, section 10A.025, is amended by adding a subdivision
6.23to read:
6.24 Subd. 5. Reconciliation information; penalty. An individual or association
6.25required to file a report under this chapter must provide information requested by the
6.26board to reconcile discrepancies between the report and reports filed by other individuals
6.27or associations. The board's request for information must be in writing. If the individual
6.28or association fails to provide the requested information within ten business days after the
6.29request was sent, the board may impose a late filing fee of $25 per day up to $1,000.
6.30The board may send notice by certified mail to an individual or association that has
6.31not timely responded to the board's written request for reconciliation information. The
6.32certified notice must state that if the individual or association does not respond to the
6.33board's request for information within ten business days after the certified notice was
6.34sent, the individual or association may be subject to a civil penalty for failure to provide
6.35information to the board. An individual or association that does not provide the requested
7.1information within ten business days after the certified notice was sent is subject to a civil
7.2penalty imposed by the board of up to $1,000.
7.3A person who willfully fails to cooperate with the board to reconcile a report
7.4discrepancy is subject to a civil penalty imposed by the board of up to $3,000.
7.5 Sec. 8. Minnesota Statutes 2012, section 10A.09, subdivision 1, is amended to read:
7.6 Subdivision 1. Time for filing.Except for a candidate for elective office in the
7.7judicial branch, An individual must file a statement of economic interest with the board:
7.8(1) within 60 days of accepting employment as a public official or a local official in
7.9a metropolitan governmental unit;
7.10(2) within 60 days of assuming office as a district court judge, appeals court judge,
7.11supreme court justice, or county commissioner;
7.12(2) (3) within 14 days after filing an affidavit of candidacy or petition to appear on
7.13the ballot for an elective state constitutional or legislative office or an elective local office
7.14in a metropolitan governmental unit other than county commissioner;
7.15(3) (4) in the case of a public official requiring the advice and consent of the senate,
7.16within 14 days after undertaking the duties of office; or
7.17(4) (5) in the case of members of the Minnesota Racing Commission, the director
7.18of the Minnesota Racing Commission, chief of security, medical officer, inspector of
7.19pari-mutuels, and stewards employed or approved by the commission or persons who
7.20fulfill those duties under contract, within 60 days of accepting or assuming duties.
7.21 Sec. 9. Minnesota Statutes 2012, section 10A.09, is amended by adding a subdivision
7.22to read:
7.23 Subd. 1a. Exception; senior judges. Notwithstanding subdivision 1, a retired judge
7.24or justice appointed to serve as a senior judge or justice under section 2.724 is not required
7.25to comply with the provisions of this section.
7.26 Sec. 10. Minnesota Statutes 2012, section 10A.09, subdivision 5, is amended to read:
7.27 Subd. 5. Form. A statement of economic interest required by this section must be
7.28on a form prescribed by the board. The individual filing must provide the following
7.29information:
7.30(1) name, address, occupation, and principal place of business;
7.31(2) the name of each associated business and the nature of that association;
7.32(3) a listing of all real property within the state, excluding homestead property, in
7.33which the individual holds: (i) a fee simple interest, a mortgage, a contract for deed as
8.1buyer or seller, or an option to buy, whether direct or indirect, if the interest is valued in
8.2excess of $2,500; or (ii) an option to buy, if the property has a fair market value of more
8.3than $50,000or more;
8.4(4) a listing of all real property within the state in which a partnership of which the
8.5individual is a member holds: (i) a fee simple interest, a mortgage, a contract for deed
8.6as buyer or seller, or an option to buy, whether direct or indirect, if the individual's share
8.7of the partnership interest is valued in excess of $2,500; or (ii) an option to buy, if the
8.8property has a fair market value of more than $50,000or more. A listing under clause
8.9(3) or (4) must indicate the street address and the municipality or the section, township,
8.10range and approximate acreage, whichever applies, and the county in which the property
8.11is located; and
8.12(5) a listing of any investments, ownership, or interests in property connected with
8.13pari-mutuel horse racing in the United States and Canada, including a racehorse, in which
8.14the individual directly or indirectly holds a partial or full interest or an immediate family
8.15member holds a partial or full interest.
8.16 Sec. 11. Minnesota Statutes 2012, section 10A.12, subdivision 5, is amended to read:
8.17 Subd. 5. Dues or membership fees. An association may, if not prohibited by other
8.18law, deposit in its political fund money derived from dues or membership fees. Under
8.19section10A.20 , the treasurer of the fund must disclose the name of any member whose
8.20dues, membership fees, and contributions deposited in the political fund together exceed
8.21$100 $200 in a year.
8.22 Sec. 12. Minnesota Statutes 2013 Supplement, section 10A.20, subdivision 2, is
8.23amended to read:
8.24 Subd. 2. Time for filing. (a) The reports must be filed with the board on or before
8.25January 31 of each year and additional reports must be filed as required and in accordance
8.26with paragraphs (b) to(d) (f).
8.27(b) In each year in which the name of a candidate for legislative or district court
8.28judicial office is on the ballot, the report of the principal campaign committee must be
8.29filed 15 days before a primary election and ten days before a general election, seven
8.30days before a special primary election and seven days before a special general election,
8.31and ten days after a special election cycle.
8.32(c) In each general election year, a political committee, a political fund, a state
8.33party committee, and a party unit established by all or a part of the party organization
9.1within a house of the legislature, and the principal campaign committee of a candidate for
9.2constitutional or appellate court judicial office must file reports on the following schedule:
9.3(1) a first-quarter report covering the calendar year through March 31, which is
9.4due April 14;
9.5(2)in a year in which a primary election is held in August, a report covering the
9.6calendar year through May 31, which is due June 14;
9.7(3) in a year in which a primary election is held before August, a pre-general-election
9.8report covering the calendar year through July 15, which is due July 29;
9.9(4) (3) a pre-primary-election report due 15 days before a primary election;
9.10(5) (4) a pre-general-election report due 42 days before the general election; and
9.11(6) (5) a pre-general-election report due ten days before a general election; and.
9.12(7) for a special election, a constitutional office candidate whose name is on the
9.13ballot must file reports seven days before a special primary and a special election, and ten
9.14days after a special election cycle.
9.15(d) In each general election year, a party unit not included in paragraph (c) must file
9.16reports 15 days before a primary election and ten days before a general election.
9.17(e) In each year in which a constitutional office or appellate court judicial seat is
9.18on the ballot, the principal campaign committee of a candidate for that office or seat
9.19must file reports on the following schedule:
9.20(1) a first-quarter report covering the calendar year through March 31, which is
9.21due April 14;
9.22(2) a report covering the calendar year through May 31, which is due June 14;
9.23(3) a pre-primary-election report due 15 days before a primary election;
9.24(4) a pre-general-election report due 42 days before the general election;
9.25(5) a pre-general-election report due ten days before a general election; and
9.26(6) for a special election, a constitutional office candidate whose name is on the
9.27ballot must file reports seven days before a special primary election, seven days before a
9.28special general election, and ten days after a special election cycle.
9.29(e) (f) Notwithstanding paragraphs (a) to (d), (e):
9.30(1) the principal campaign committee of a candidate who did not file for office is not
9.31required to file the report due 15 days before the primary election or the report due seven
9.32days before a special primary election; and
9.33(2) the principal campaign committee of a candidate whose name will not be on the
9.34general election ballot is not required to file the report due 42 days before the general
9.35election, the report due ten days before a general election, or the report due seven days
9.36before a special general election.
10.1 Sec. 13. Minnesota Statutes 2013 Supplement, section 10A.20, subdivision 5, is
10.2amended to read:
10.3 Subd. 5. Pre-election reports. (a) Any loan, contribution, or contributions:
10.4 (1) to a political committee or political fund from any one source totaling more
10.5than $1,000;
10.6 (2) to the principal campaign committee of a candidate for an appellate court judicial
10.7office totaling more than $2,000;
10.8 (3) to the principal campaign committee of a candidate for district court judge
10.9totaling more than $400; or
10.10 (4) to the principal campaign committee of a candidate for constitutional office or
10.11for the legislature totaling more than 50 percent of the electioncycle segment contribution
10.12limit for the office,
10.13received between the last day covered in the last report before an election and the election
10.14must be reported to the board in the manner provided in paragraph (b).
10.15(b) A loan, contribution, or contributions required to be reported to the board under
10.16paragraph (a) must be reported to the board either:
10.17 (1) in person by the end of the next business day after its receipt; or
10.18 (2) by electronic means sent within 24 hours after its receipt.
10.19 (c) These loans and contributions must also be reported in the next required report.
10.20 (d) This notice requirement does not apply in a primary election to a candidate who
10.21is unopposed in the primary, in a primary election to a ballot question political committee
10.22or fund, or in a general election to a candidate whose name is not on the general election
10.23ballot. The board must post the report on its Web site by the end of the next business day
10.24after it is received.
10.25 (e) This subdivision does not apply to a ballot question or independent expenditure
10.26political committee or fund that has not met the registration threshold of section10A.14 ,
10.27subdivision 1a. However, if a contribution that would be subject to this section triggers the
10.28registration requirement in section10A.14, subdivision 1a , then both registration under
10.29that section and reporting under this section are required.
10.30 Sec. 14. Minnesota Statutes 2012, section 10A.255, subdivision 3, is amended to read:
10.31 Subd. 3. Publication of expenditure limit. By April 15 of each election year
10.32the board must publishin the State Register on its Web site the expenditure limit for
10.33each office for that calendar year under section10A.25 as adjusted by this section. The
10.34revisor of statutes must code the adjusted amounts in the next edition of Minnesota
10.35Statutes, section10A.25, subdivision 2 .
11.1 Sec. 15. Minnesota Statutes 2012, section 10A.28, subdivision 4, is amended to read:
11.2 Subd. 4. Civil action. If the board is unable after a reasonable time to correct by
11.3informal methods a matterthat constitutes probable cause where there is reason to believe
11.4that excess expenditures have been made or excess contributions accepted contrary to
11.5subdivision 1 or 2, the board must make a public findingof probable cause in the matter.
11.6After making a public finding, the board must bring an action, or transmit the finding to a
11.7county attorney who must bring an action, in the District Court of Ramsey County or, in the
11.8case of a legislative candidate, the district court of a county within the legislative district,
11.9to collect a civil penalty as imposed by the board under subdivision 1 or 2. All money
11.10recovered under this section must be deposited in the general fund of the state treasury.
11.11 Sec. 16. Minnesota Statutes 2012, section 211A.02, subdivision 2, is amended to read:
11.12 Subd. 2. Information required. The report to be filed by a candidate or committee
11.13must include:
11.14 (1) the name of the candidate or ballot question;
11.15 (2) the printed name, address, telephone number, signature, and e-mail address, if
11.16available, of the person responsible for filing the report;
11.17 (3) the total cash on hand designated to be used for political purposes;
11.18(4) the total amount ofreceipts contributions and expenditures disbursements for the
11.19period from the last previous report to five days before the current report is due;
11.20 (5) the amount, date, and purpose for eachexpenditure disbursement; and
11.21 (6) the name, address, and employer, or occupation if self-employed, of any
11.22individual or committee that during the year has made one or more contributions that in
11.23the aggregate exceed $100, and the amount and date of each contribution. The filing
11.24officer must restrict public access to the address of any individual who has made a
11.25contribution that exceeds $100 and who has filed with the filing officer a written statement
11.26signed by the individual that withholding the individual's address from the financial report
11.27is required for the safety of the individual or the individual's family.
11.28 Sec. 17. REPEALER.
11.29Minnesota Statutes 2012, section 10A.09, subdivision 8, is repealed.
11.30 Sec. 18. EFFECTIVE DATE.
11.31Sections 1 to 17 are effective the day following final enactment.
1.3board to request reconciliation information; authorizing certain fees; modifying
1.4certain definitions and fee amounts; imposing penalties;amending Minnesota
1.5Statutes 2012, sections 10A.01, subdivisions 5, 26; 10A.02, subdivision 11a;
1.610A.025, by adding a subdivision; 10A.09, subdivisions 1, 5, by adding a
1.7subdivision; 10A.12, subdivision 5; 10A.255, subdivision 3; 10A.28, subdivision
1.84; 211A.02, subdivision 2; Minnesota Statutes 2013 Supplement, sections
1.910A.01, subdivision 10; 10A.02, subdivision 11; 10A.025, subdivision 4;
1.1010A.20, subdivisions 2, 5; repealing Minnesota Statutes 2012, section 10A.09,
1.11subdivision 8.
1.12BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.13 Section 1. Minnesota Statutes 2012, section 10A.01, subdivision 5, is amended to read:
1.14 Subd. 5. Associated business. "Associated business" means an association,
1.15corporation, partnership, limited liability company, limited liability partnership, or other
1.16organized legal entity from which the individual receives compensation in excess of $50,
1.17except for actual and reasonable expenses, in any month as a director, officer, owner,
1.18member, partner, employer or employee, or whose securities the individual holds worth
1.19more than $2,500
1.20 Sec. 2. Minnesota Statutes 2013 Supplement, section 10A.01, subdivision 10, is
1.21amended to read:
1.22 Subd. 10. Candidate. "Candidate" means an individual who seeks nomination or
1.23election as a state constitutional officer, legislator, or judge. An individual is deemed
1.24to seek nomination or election if the individual has taken the action necessary under
1.25the law of this state to qualify for nomination or election, has received contributions or
1.26made expenditures in excess of
2.1any other person to receive contributions or make expenditures in excess of
2.2for the purpose of bringing about the individual's nomination or election. A candidate
2.3remains a candidate until the candidate's principal campaign committee is dissolved as
2.4provided in section
2.5 Sec. 3. Minnesota Statutes 2012, section 10A.01, subdivision 26, is amended to read:
2.6 Subd. 26. Noncampaign disbursement. "Noncampaign disbursement" means
2.7a purchase or payment of money or anything of value made, or an advance of credit
2.8incurred, or a donation in kind received, by a principal campaign committee for any of
2.9the following purposes:
2.10 (1) payment for accounting and legal services;
2.11 (2) return of a contribution to the source;
2.12 (3) repayment of a loan made to the principal campaign committee by that committee;
2.13 (4) return of a public subsidy;
2.14 (5) payment for food, beverages, and necessary utensils and supplies, entertainment,
2.15and facility rental for a fund-raising event;
2.16 (6) services for a constituent by a member of the legislature or a constitutional officer
2.17in the executive branch, including the costs of preparing and distributing a suggestion or
2.18idea solicitation to constituents, performed from the beginning of the term of office to
2.19adjournment sine die of the legislature in the election year for the office held, and half
2.20the cost of services for a constituent by a member of the legislature or a constitutional
2.21officer in the executive branch performed from adjournment sine die to 60 days after
2.22adjournment sine die;
2.23 (7) payment for food and beverages consumed by a candidate or volunteers while
2.24they are engaged in campaign activities;
2.25 (8) payment for food or a beverage consumed while attending a reception or meeting
2.26directly related to legislative duties;
2.27 (9) payment of expenses incurred by elected or appointed leaders of a legislative
2.28caucus in carrying out their leadership responsibilities, provided that expenses claimed
2.29under this clause for travel outside of the United States must be documented through
2.30submission of receipts, itineraries, itemized expense lists, and other evidence as may be
2.31required by the board, and must be limited to one trip per calendar year;
2.32 (10) payment by a principal campaign committee of the candidate's expenses for
2.33serving in public office, other than for personal uses, provided that expenses claimed under
2.34this clause for travel outside of the United States must be documented through submission
3.1of receipts, itineraries, itemized expense lists, and other evidence as may be required by
3.2the board, and must be limited to one trip per calendar year;
3.3 (11) costs of child care for the candidate's children when campaigning;
3.4 (12) fees paid to attend a campaign school;
3.5 (13) costs of a postelection party during the election year when a candidate's name
3.6will no longer appear on a ballot or the general election is concluded, whichever occurs first;
3.7 (14) interest on loans paid by a principal campaign committee on outstanding loans;
3.8 (15) filing fees;
3.9 (16) post-general election holiday or seasonal cards, thank-you notes, or
3.10advertisements in the news media mailed or published prior to the end of the election cycle;
3.11 (17) the cost of campaign material purchased to replace defective campaign material,
3.12if the defective material is destroyed without being used;
3.13 (18) contributions to a party unit;
3.14 (19) payments for funeral gifts or memorials;
3.15 (20) the cost of a magnet less than six inches in diameter containing legislator
3.16contact information and distributed to constituents;
3.17 (21) costs associated with a candidate attending a political party state or national
3.18convention in this state;
3.19 (22) other purchases or payments specified in board rules or advisory opinions as
3.20being for any purpose other than to influence the nomination or election of a candidate or
3.21to promote or defeat a ballot question; and
3.22(23) costs paid to a third party for processing contributions made by a credit card,
3.23debit card, or electronic check.
3.24 The board must determine whether an activity involves a noncampaign disbursement
3.25within the meaning of this subdivision.
3.26 A noncampaign disbursement is considered to be made in the year in which the
3.27candidate made the purchase of goods or services or incurred an obligation to pay for
3.28goods or services.
3.29 Sec. 4. Minnesota Statutes 2013 Supplement, section 10A.02, subdivision 11, is
3.30amended to read:
3.31 Subd. 11. Violations; enforcement. (a) The board may investigate any alleged
3.32violation of this chapter. The board may also investigate an alleged violation of section
3.34committee, political committee, political fund, or party unit, as those terms are defined in
3.35this chapter. The board must investigate any violation that is alleged in a written complaint
4.1filed with the board and must within 30 days after the filing of the complaint make findings
4.2and conclusions as to whether a violation has occurred and must issue an order, except that
4.3if the complaint alleges a violation of section
4.4a conciliation agreement or make public findings and conclusions as to whether a violation
4.5has occurred and must issue an order within 60 days after the filing of the complaint. The
4.6deadline for action on a written complaint may be extended by majority vote of the board.
4.7(b) The board may bring legal actions or negotiate settlements in its own name to
4.8recover money raised from contributions subject to the conditions in this paragraph.
4.9(1) No action may be commenced unless the board has made a formal determination,
4.10after an investigation, that the money was raised for political purposes as defined in
4.11section
4.12under this chapter or under section
4.13(2) Prior to commencing an action, the board must give the association whose money
4.14was misused written notice by certified mail of its intent to take action under this subdivision
4.15and must give the association a reasonable opportunity, for a period of not less than 90
4.16days, to recover the money without board intervention. This period must be extended
4.17for at least an additional 90 days for good cause if the association is actively pursuing
4.18recovery of the money. The board may not commence a legal action under this subdivision
4.19if the association has commenced a legal action for the recovery of the same money.
4.20(3) Any funds recovered under this subdivision must be deposited in a campaign
4.21finance recovery account in the special revenue fund and are appropriated as follows:
4.22(i) an amount equal to the board's actual costs and disbursements in the action,
4.23including court reporter fees for depositions taken in the course of an investigation, is
4.24appropriated to the board for its operations;
4.25(ii) an amount equal to the reasonable value of legal services provided by the Office
4.26of the Attorney General in the recovery matter, calculated on the same basis as is used
4.27for charging legal fees to state agencies, is appropriated to the attorney general for the
4.28attorney general's operations; and
4.29(iii) any remaining balance is appropriated to the board for distribution to the
4.30association to which the money was originally contributed.
4.31(4) Notwithstanding clause (3), item (iii), if the candidate of a principal campaign
4.32committee is the person who used the association's money for illegal purposes, or if the
4.33association or political fund whose money was misused is no longer registered with the
4.34board, any money remaining after the payments specified in clause (3), items (i) and (ii),
4.35must be transferred to the general account of the state elections campaign account.
5.1(5) Any action by the board under this paragraph must be commenced not later than
5.2four years after the improper use of money is shown on a report filed with the board or the
5.3board has actual knowledge of improper use. No action may be commenced under this
5.4paragraph for improper uses disclosed on reports for calendar years prior to 2011.
5.5(6) If the board prevails in an action brought under this subdivision and the court
5.6makes a finding that the misuse of funds was willful, the court may enter judgment in favor
5.7of the board and against the person misusing the funds in the amount of the misused funds.
5.8(c) Within a reasonable time after beginning an investigation of an individual
5.9or association, the board must notify the individual or association of the fact of the
5.10investigation. The board must not make a finding
5.11
5.12nature of the allegations and affording an opportunity to answer those allegations.
5.13(d) A hearing before the board or action of the board concerning a complaint or
5.14investigation other than
5.15orders or a conciliation agreement is confidential. Until the board makes a public finding
5.16
5.17(1) a member, employee, or agent of the board must not disclose to an individual
5.18information obtained by that member, employee, or agent concerning a complaint or
5.19investigation except as required to carry out the investigation or take action in the matter
5.20as authorized by this chapter; and
5.21(2) an individual who discloses information contrary to this subdivision is subject
5.22to a civil penalty imposed by the board of up to $1,000.
5.23(e) A matter that is under the board's jurisdiction pursuant to this section and that
5.24may result in a criminal offense must be finally disposed of by the board before the alleged
5.25violation may be prosecuted by a city or county attorney.
5.26 Sec. 5. Minnesota Statutes 2012, section 10A.02, subdivision 11a, is amended to read:
5.27 Subd. 11a. Data privacy. If, after making a public finding
5.28
5.29investigation contains statements, documents, or other matter that, if disclosed, would
5.30unfairly injure the reputation of an innocent individual, the board may:
5.31(1) retain the statement, document, or other matter as a private record, as defined in
5.32section
5.33(2) return the statement, document, or other matter to the individual who supplied
5.34it to the board.
6.1 Sec. 6. Minnesota Statutes 2013 Supplement, section 10A.025, subdivision 4, is
6.2amended to read:
6.3 Subd. 4. Changes and corrections. Material changes in information previously
6.4submitted and corrections to a report or statement must be reported in writing to the board
6.5within ten days following the date of the event prompting the change or the date upon
6.6which the person filing became aware of the inaccuracy. The change or correction must
6.7identify the form and the paragraph containing the information to be changed or corrected.
6.8A person who willfully fails to report a material change or correction is subject to a
6.9civil penalty imposed by the board of up to $3,000. A willful violation of this subdivision
6.10is a gross misdemeanor.
6.11The board must send a written notice
6.12file a report required by this subdivision. If the individual fails to file the required report
6.13within ten business days after the notice was sent, the board may impose a late filing fee of
6.14
6.15board
6.16file a report within
6.17The certified notice must state that if the individual does not file the requested report
6.18within ten business days after the certified notice was sent, the individual may be subject
6.19to a civil penalty for failure to file a report. An individual who fails to file a report required
6.20by this subdivision within
6.21sent by the board is subject to a civil penalty imposed by the board of up to $1,000.
6.22 Sec. 7. Minnesota Statutes 2012, section 10A.025, is amended by adding a subdivision
6.23to read:
6.24 Subd. 5. Reconciliation information; penalty. An individual or association
6.25required to file a report under this chapter must provide information requested by the
6.26board to reconcile discrepancies between the report and reports filed by other individuals
6.27or associations. The board's request for information must be in writing. If the individual
6.28or association fails to provide the requested information within ten business days after the
6.29request was sent, the board may impose a late filing fee of $25 per day up to $1,000.
6.30The board may send notice by certified mail to an individual or association that has
6.31not timely responded to the board's written request for reconciliation information. The
6.32certified notice must state that if the individual or association does not respond to the
6.33board's request for information within ten business days after the certified notice was
6.34sent, the individual or association may be subject to a civil penalty for failure to provide
6.35information to the board. An individual or association that does not provide the requested
7.1information within ten business days after the certified notice was sent is subject to a civil
7.2penalty imposed by the board of up to $1,000.
7.3A person who willfully fails to cooperate with the board to reconcile a report
7.4discrepancy is subject to a civil penalty imposed by the board of up to $3,000.
7.5 Sec. 8. Minnesota Statutes 2012, section 10A.09, subdivision 1, is amended to read:
7.6 Subdivision 1. Time for filing.
7.7
7.8(1) within 60 days of accepting employment as a public official or a local official in
7.9a metropolitan governmental unit;
7.10(2) within 60 days of assuming office as a district court judge, appeals court judge,
7.11supreme court justice, or county commissioner;
7.12
7.13the ballot for an elective state constitutional or legislative office or an elective local office
7.14in a metropolitan governmental unit other than county commissioner;
7.15
7.16within 14 days after undertaking the duties of office; or
7.17
7.18of the Minnesota Racing Commission, chief of security, medical officer, inspector of
7.19pari-mutuels, and stewards employed or approved by the commission or persons who
7.20fulfill those duties under contract, within 60 days of accepting or assuming duties.
7.21 Sec. 9. Minnesota Statutes 2012, section 10A.09, is amended by adding a subdivision
7.22to read:
7.23 Subd. 1a. Exception; senior judges. Notwithstanding subdivision 1, a retired judge
7.24or justice appointed to serve as a senior judge or justice under section 2.724 is not required
7.25to comply with the provisions of this section.
7.26 Sec. 10. Minnesota Statutes 2012, section 10A.09, subdivision 5, is amended to read:
7.27 Subd. 5. Form. A statement of economic interest required by this section must be
7.28on a form prescribed by the board. The individual filing must provide the following
7.29information:
7.30(1) name, address, occupation, and principal place of business;
7.31(2) the name of each associated business and the nature of that association;
7.32(3) a listing of all real property within the state, excluding homestead property, in
7.33which the individual holds: (i) a fee simple interest, a mortgage, a contract for deed as
8.1buyer or seller, or an option to buy, whether direct or indirect, if the interest is valued in
8.2excess of $2,500; or (ii) an option to buy, if the property has a fair market value of more
8.3than $50,000
8.4(4) a listing of all real property within the state in which a partnership of which the
8.5individual is a member holds: (i) a fee simple interest, a mortgage, a contract for deed
8.6as buyer or seller, or an option to buy, whether direct or indirect, if the individual's share
8.7of the partnership interest is valued in excess of $2,500; or (ii) an option to buy, if the
8.8property has a fair market value of more than $50,000
8.9(3) or (4) must indicate the street address and the municipality or the section, township,
8.10range and approximate acreage, whichever applies, and the county in which the property
8.11is located; and
8.12(5) a listing of any investments, ownership, or interests in property connected with
8.13pari-mutuel horse racing in the United States and Canada, including a racehorse, in which
8.14the individual directly or indirectly holds a partial or full interest or an immediate family
8.15member holds a partial or full interest.
8.16 Sec. 11. Minnesota Statutes 2012, section 10A.12, subdivision 5, is amended to read:
8.17 Subd. 5. Dues or membership fees. An association may, if not prohibited by other
8.18law, deposit in its political fund money derived from dues or membership fees. Under
8.19section
8.20dues, membership fees, and contributions deposited in the political fund together exceed
8.21
8.22 Sec. 12. Minnesota Statutes 2013 Supplement, section 10A.20, subdivision 2, is
8.23amended to read:
8.24 Subd. 2. Time for filing. (a) The reports must be filed with the board on or before
8.25January 31 of each year and additional reports must be filed as required and in accordance
8.26with paragraphs (b) to
8.27(b) In each year in which the name of a candidate for legislative or district court
8.28judicial office is on the ballot, the report of the principal campaign committee must be
8.29filed 15 days before a primary election and ten days before a general election, seven
8.30days before a special primary election and seven days before a special general election,
8.31and ten days after a special election cycle.
8.32(c) In each general election year, a political committee, a political fund, a state
8.33party committee, and a party unit established by all or a part of the party organization
9.1within a house of the legislature
9.2
9.3(1) a first-quarter report covering the calendar year through March 31, which is
9.4due April 14;
9.5(2)
9.6calendar year through May 31, which is due June 14;
9.7
9.8
9.9
9.10
9.11
9.12
9.13
9.14
9.15(d) In each general election year, a party unit not included in paragraph (c) must file
9.16reports 15 days before a primary election and ten days before a general election.
9.17(e) In each year in which a constitutional office or appellate court judicial seat is
9.18on the ballot, the principal campaign committee of a candidate for that office or seat
9.19must file reports on the following schedule:
9.20(1) a first-quarter report covering the calendar year through March 31, which is
9.21due April 14;
9.22(2) a report covering the calendar year through May 31, which is due June 14;
9.23(3) a pre-primary-election report due 15 days before a primary election;
9.24(4) a pre-general-election report due 42 days before the general election;
9.25(5) a pre-general-election report due ten days before a general election; and
9.26(6) for a special election, a constitutional office candidate whose name is on the
9.27ballot must file reports seven days before a special primary election, seven days before a
9.28special general election, and ten days after a special election cycle.
9.29
9.30(1) the principal campaign committee of a candidate who did not file for office is not
9.31required to file the report due 15 days before the primary election or the report due seven
9.32days before a special primary election; and
9.33(2) the principal campaign committee of a candidate whose name will not be on the
9.34general election ballot is not required to file the report due 42 days before the general
9.35election, the report due ten days before a general election, or the report due seven days
9.36before a special general election.
10.1 Sec. 13. Minnesota Statutes 2013 Supplement, section 10A.20, subdivision 5, is
10.2amended to read:
10.3 Subd. 5. Pre-election reports. (a) Any loan, contribution, or contributions:
10.4 (1) to a political committee or political fund from any one source totaling more
10.5than $1,000;
10.6 (2) to the principal campaign committee of a candidate for an appellate court judicial
10.7office totaling more than $2,000;
10.8 (3) to the principal campaign committee of a candidate for district court judge
10.9totaling more than $400; or
10.10 (4) to the principal campaign committee of a candidate for constitutional office or
10.11for the legislature totaling more than 50 percent of the election
10.12limit for the office,
10.13received between the last day covered in the last report before an election and the election
10.14must be reported to the board in the manner provided in paragraph (b).
10.15(b) A loan, contribution, or contributions required to be reported to the board under
10.16paragraph (a) must be reported to the board either:
10.17 (1) in person by the end of the next business day after its receipt; or
10.18 (2) by electronic means sent within 24 hours after its receipt.
10.19 (c) These loans and contributions must also be reported in the next required report.
10.20 (d) This notice requirement does not apply in a primary election to a candidate who
10.21is unopposed in the primary, in a primary election to a ballot question political committee
10.22or fund, or in a general election to a candidate whose name is not on the general election
10.23ballot. The board must post the report on its Web site by the end of the next business day
10.24after it is received.
10.25 (e) This subdivision does not apply to a ballot question or independent expenditure
10.26political committee or fund that has not met the registration threshold of section
10.27subdivision 1a. However, if a contribution that would be subject to this section triggers the
10.28registration requirement in section
10.29that section and reporting under this section are required.
10.30 Sec. 14. Minnesota Statutes 2012, section 10A.255, subdivision 3, is amended to read:
10.31 Subd. 3. Publication of expenditure limit. By April 15 of each election year
10.32the board must publish
10.33each office for that calendar year under section
10.34revisor of statutes must code the adjusted amounts in the next edition of Minnesota
10.35Statutes, section
11.1 Sec. 15. Minnesota Statutes 2012, section 10A.28, subdivision 4, is amended to read:
11.2 Subd. 4. Civil action. If the board is unable after a reasonable time to correct by
11.3informal methods a matter
11.4that excess expenditures have been made or excess contributions accepted contrary to
11.5subdivision 1 or 2, the board must make a public finding
11.6
11.7
11.8
11.9
11.10
11.11 Sec. 16. Minnesota Statutes 2012, section 211A.02, subdivision 2, is amended to read:
11.12 Subd. 2. Information required. The report to be filed by a candidate or committee
11.13must include:
11.14 (1) the name of the candidate or ballot question;
11.15 (2) the printed name, address, telephone number, signature, and e-mail address, if
11.16available, of the person responsible for filing the report;
11.17 (3) the total cash on hand designated to be used for political purposes;
11.18(4) the total amount of
11.19period from the last previous report to five days before the current report is due;
11.20 (5) the amount, date, and purpose for each
11.21 (6) the name, address, and employer, or occupation if self-employed, of any
11.22individual or committee that during the year has made one or more contributions that in
11.23the aggregate exceed $100, and the amount and date of each contribution. The filing
11.24officer must restrict public access to the address of any individual who has made a
11.25contribution that exceeds $100 and who has filed with the filing officer a written statement
11.26signed by the individual that withholding the individual's address from the financial report
11.27is required for the safety of the individual or the individual's family.
11.28 Sec. 17. REPEALER.
11.29Minnesota Statutes 2012, section 10A.09, subdivision 8, is repealed.
11.30 Sec. 18. EFFECTIVE DATE.
11.31Sections 1 to 17 are effective the day following final enactment.
