1.1                          A bill for an act 
  1.2             relating to campaign finance; increasing spending 
  1.3             limits; increasing contribution and spending limits 
  1.4             for candidates involved in close primary election; 
  1.5             increasing general fund contribution to public 
  1.6             subsidies; paying public subsidy to major party 
  1.7             candidates for constitutional officer without regard 
  1.8             to vote they receive at general election; increasing 
  1.9             penalty for violation of contribution or spending 
  1.10            limits; appropriating money; amending Minnesota 
  1.11            Statutes 1998, sections 10A.25, subdivisions 2, 5, and 
  1.12            10; 10A.255, subdivision 1; 10A.27, subdivision 10; 
  1.13            10A.28, subdivisions 1 and 2; 10A.31, subdivisions 1, 
  1.14            2, 3, 4, 6, 7, and 12; 10A.322, subdivision 1; and 
  1.15            10A.323. 
  1.16  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.17     Section 1.  Minnesota Statutes 1998, section 10A.25, 
  1.18  subdivision 2, is amended to read: 
  1.19     Subd. 2.  [MAXIMUM EXPENDITURES.] (a) During an election 
  1.20  cycle and before the state primary, no expenditures shall be 
  1.21  made by the principal campaign committee of a candidate, nor any 
  1.22  approved expenditures made on behalf of that candidate which 
  1.23  expenditures and approved expenditures result in an aggregate 
  1.24  amount in excess of the following: 
  1.25     (1) for governor, $1,500,000; 
  1.26     (2) for lieutenant governor, $375,000; 
  1.27     (3) for attorney general, $375,000; and 
  1.28     (4) for secretary of state, state treasurer, and state 
  1.29  auditor, separately, $125,000. 
  1.30     (b) After the state primary and before the state general 
  2.1   election, no expenditures shall be made by the principal 
  2.2   campaign committee of a candidate, nor any approved expenditures 
  2.3   made on behalf of that candidate which expenditures and approved 
  2.4   expenditures result in an aggregate amount in excess of the 
  2.5   following: 
  2.6      (1) for governor, $1,500,000; 
  2.7      (2) for lieutenant governor, $375,000; 
  2.8      (3) for attorney general, $375,000; and 
  2.9      (4) for secretary of state, state treasurer, and state 
  2.10  auditor, separately, $125,000. 
  2.11     (c) In a year in which an election is held for an office 
  2.12  sought by a candidate, no expenditures shall be made by the 
  2.13  principal campaign committee of ~~that~~ a candidate, nor any 
  2.14  approved expenditures made on behalf of that candidate which 
  2.15  expenditures and approved expenditures result in an aggregate 
  2.16  amount in excess of the following: 
  2.17     (1) ~~for governor and lieutenant governor, running together~~, 
  2.18  ~~$1,626,691;~~ 
  2.19     ~~(2) for attorney general, $271,116;~~ 
  2.20     ~~(3)  for secretary of state, state treasurer, and state~~ 
  2.21  ~~auditor, separately, $135,559;~~ 
  2.22     ~~(4)~~  for state senator, $40,669; and 
  2.23     ~~(5)~~ (2) for state representative, $20,335. 
  2.24     ~~(b)~~ (d) If a special election cycle occurs during a general 
  2.25  election cycle, expenditures by or on behalf of a candidate in 
  2.26  the special election do not count as expenditures by or on 
  2.27  behalf of the candidate in the general election. 
  2.28     ~~(c)~~ (e) The expenditure limits in this subdivision for an 
  2.29  office are increased by ten percent for a candidate who is 
  2.30  running for that office for the first time and who has not run 
  2.31  previously for any other office whose territory now includes a 
  2.32  population that is more than one-third of the population in the 
  2.33  territory of the new office. 
  2.34     Sec. 2.  Minnesota Statutes 1998, section 10A.25, 
  2.35  subdivision 5, is amended to read: 
  2.36     Subd. 5.  [PRIMARY RACES.] (a) Notwithstanding the limits 
  3.1   imposed by subdivision 2, paragraph (b), the winning candidate 
  3.2   in a contested race for constitutional officer in a primary who 
  3.3   received fewer than twice as many votes as any one of the 
  3.4   candidate's opponents in that primary may make additional 
  3.5   aggregate expenditures and approved expenditures equal to 20 
  3.6   percent of the applicable amount as set forth in subdivision 2, 
  3.7   paragraph (b), as adjusted by section 10A.255, for each opponent 
  3.8   who received at least 20 percent of the vote.  
  3.9      (b) Notwithstanding the limits imposed by subdivision 2, 
  3.10  the winning candidate in a contested race for state senator or 
  3.11  state representative in a primary who received fewer than twice 
  3.12  as many votes as any one of the candidate's opponents in that 
  3.13  primary may make aggregate expenditures and approved 
  3.14  expenditures equal to 120 percent of the applicable amount as 
  3.15  set forth in subdivision 2, as adjusted by section 10A.255.  A 
  3.16  candidate in a contested primary race may not, under this 
  3.17  subdivision, make aggregate expenditures and approved 
  3.18  expenditures of more than 100 percent of the expenditure limits 
  3.19  imposed by subdivision 2, paragraph (c), until after the primary.
  3.20     Sec. 3.  Minnesota Statutes 1998, section 10A.25, 
  3.21  subdivision 10, is amended to read: 
  3.22     Subd. 10.  [EFFECT OF OPPONENT'S CONDUCT.] (a) After the 
  3.23  deadline for filing a spending limit agreement under section 
  3.24  10A.322, a candidate who has agreed to be bound by the 
  3.25  expenditure limits imposed by this section as a condition of 
  3.26  receiving a public subsidy for the candidate's campaign ~~is~~ may 
  3.27  choose to be released from the expenditure limits but ~~remains~~ 
  3.28  remain eligible to receive a public subsidy if the candidate has 
  3.29  an opponent who ~~does~~ has not ~~agree~~ agreed to be bound by the 
  3.30  limits and ~~receives~~ has received contributions or ~~makes~~ made or 
  3.31  ~~becomes~~ become obligated to make expenditures during that 
  3.32  election cycle in excess of the following limits: 
  3.33     (1) ~~up to ten days~~ during the reporting period before the 
  3.34  primary election, receipts or expenditures equal to 20 percent 
  3.35  of the expenditure limit for that office as set forth in 
  3.36  subdivision 2; or 
  4.1      (2) after ~~ten days before the primary election~~ that 
  4.2   reporting period, cumulative receipts or expenditures during 
  4.3   that election cycle equal to 50 percent of the expenditure limit 
  4.4   for that office as set forth in subdivision 2. 
  4.5      Before the primary election, a candidate's "opponents" are 
  4.6   only those who will appear on the ballot of the same party in 
  4.7   the primary election. 
  4.8      (b) A candidate who has not agreed to be bound by 
  4.9   expenditure limits, or the candidate's principal campaign 
  4.10  committee, shall file written notice with the board and provide 
  4.11  written notice to any opponent of the candidate for the same 
  4.12  office within 24 hours of exceeding the limits in paragraph (a)~~,~~ 
  4.13  ~~clause (2)~~.  The notice must state only that the candidate or 
  4.14  candidate's principal campaign committee has received 
  4.15  contributions or made or become obligated to make campaign 
  4.16  expenditures in excess of the limits in paragraph (a)~~, clause~~ 
  4.17  ~~(2)~~. 
  4.18     (c) Upon receipt of the notice ~~the~~, a candidate who has 
  4.19  agreed to be bound by the limits ~~is~~ may file with the board a 
  4.20  notice that the candidate chooses to be no longer bound by the 
  4.21  expenditure limits.  A notice of a candidate's choice not to be 
  4.22  bound by the expenditure limits that is based on the conduct of 
  4.23  an opponent in the state primary election may not be filed more 
  4.24  than one day after the state canvassing board has declared the 
  4.25  results of the state primary. 
  4.26     (d) A candidate who has agreed to be bound by the 
  4.27  expenditure limits imposed by this section and whose opponent in 
  4.28  the general election has chosen, as provided in paragraph (c), 
  4.29  not to be bound by the expenditure limits because of the conduct 
  4.30  of an opponent in the primary election is no longer bound by the 
  4.31  limits but remains eligible to receive a public subsidy. 
  4.32     Sec. 4.  Minnesota Statutes 1998, section 10A.255, 
  4.33  subdivision 1, is amended to read: 
  4.34     Subdivision 1.  [METHOD OF CALCULATION.] The dollar amounts 
  4.35  provided in section 10A.25, subdivision 2, must be adjusted for 
  4.36  general election years as provided in this section.  By June 1 
  5.1   of the general election year, the executive director of the 
  5.2   board shall determine the percentage increase in the consumer 
  5.3   price index from December of the year preceding the last general 
  5.4   election year to December of the year preceding the year in 
  5.5   which the determination is made.  The dollar amounts used for 
  5.6   the preceding general election year must be multiplied by that 
  5.7   percentage.  The product of the calculation must be added to 
  5.8   each dollar amount to produce the dollar limitations to be in 
  5.9   effect for the next general election.  The product must be 
  5.10  rounded up to the next highest ~~whole dollar~~ $100 increment.  The 
  5.11  index used must be the revised consumer price index for all 
  5.12  urban consumers for the St. Paul-Minneapolis metropolitan area 
  5.13  prepared by the United States Department of Labor with 1982 as a 
  5.14  base year. 
  5.15     Sec. 5.  Minnesota Statutes 1998, section 10A.27, 
  5.16  subdivision 10, is amended to read: 
  5.17     Subd. 10.  [PROHIBITED CONTRIBUTIONS.] A candidate who 
  5.18  accepts a public subsidy may not contribute to the candidate's 
  5.19  own campaign more than ten times the candidate's election year 
  5.20  contribution limit under subdivision 1, except that a candidate 
  5.21  whose name was on the primary or general election ballot but who 
  5.22  was not elected may contribute up to 20 times the candidate's 
  5.23  election year contribution limit.  A candidate who terminates 
  5.24  the candidate's principal campaign committee may contribute to 
  5.25  the committee an amount necessary to pay all or part of the 
  5.26  debts of the committee. 
  5.27     Sec. 6.  Minnesota Statutes 1998, section 10A.28, 
  5.28  subdivision 1, is amended to read: 
  5.29     Subdivision 1.  [CANDIDATE EXCEEDING EXPENDITURE LIMITS.] A 
  5.30  candidate subject to the expenditure limits in section 10A.25 
  5.31  who permits the candidate's principal campaign committee to make 
  5.32  expenditures or permits approved expenditures to be made on the 
  5.33  candidate's behalf in excess of the limits imposed by section 
  5.34  10A.25, as adjusted by section 10A.255, is subject to a civil 
  5.35  fine up to ~~four~~ five times the amount which the expenditures 
  5.36  exceeded the limit. 
  6.1      Sec. 7.  Minnesota Statutes 1998, section 10A.28, 
  6.2   subdivision 2, is amended to read: 
  6.3      Subd. 2.  [CIVIL FINE.] A candidate who permits the 
  6.4   candidate's principal campaign committee to accept contributions 
  6.5   in excess of the limits imposed by section 10A.27, and the 
  6.6   treasurer of a political fund or political committee, other than 
  6.7   a principal campaign committee, who permits the committee or 
  6.8   fund to accept contributions in excess of the limits imposed by 
  6.9   section 10A.27, shall be subject to a civil fine of up to ~~four~~ 
  6.10  five times the amount by which the contribution exceeded the 
  6.11  limits. 
  6.12     Sec. 8.  Minnesota Statutes 1998, section 10A.31, 
  6.13  subdivision 1, is amended to read: 
  6.14     Subdivision 1.  [AMOUNT ALLOWED.] For every individual 
  6.15  resident of Minnesota who files an income tax return or a renter 
  6.16  and homeowner property tax refund return with the commissioner 
  6.17  of revenue ~~may designate on their original return that~~, $5 shall 
  6.18  be paid from the general fund of the state into the state 
  6.19  elections campaign fund, unless the individual directs that the 
  6.20  $5 not be paid.  If a husband and wife file a joint return, ~~each~~ 
  6.21  ~~spouse may designate that~~ $5 shall be paid for each spouse, 
  6.22  unless the spouse directs that the $5 not be paid.  ~~No~~ 
  6.23  ~~individual shall be allowed to designate~~ The $5 must not be paid 
  6.24  more than once in any year. 
  6.25     Sec. 9.  Minnesota Statutes 1998, section 10A.31, 
  6.26  subdivision 2, is amended to read: 
  6.27     Subd. 2.  [DESIGNATION OF ACCOUNT.] The ~~taxpayer may~~ 
  6.28  ~~designate that the~~ amount ~~designated be~~ paid ~~into the account of~~ 
  6.29  ~~a political party or into~~ under subdivision 1 must be credited 
  6.30  to the general account, unless the taxpayer directs that it be 
  6.31  paid into the account of a political party. 
  6.32     Sec. 10.  Minnesota Statutes 1998, section 10A.31, 
  6.33  subdivision 3, is amended to read: 
  6.34     Subd. 3.  [FORM.] The commissioner of ~~the department of~~ 
  6.35  revenue shall provide on the first page of the income tax form 
  6.36  and the renter and homeowner property tax refund return a space 
  7.1   for the individual to ~~indicate a wish to allocate~~ direct that 
  7.2   the $5 ($10 if filing a joint return) ~~from~~ not be paid to the 
  7.3   general fund of the state to finance election campaigns.  The 
  7.4   form shall also contain language prepared by the commissioner 
  7.5   which permits the individual to direct the state to allocate the 
  7.6   $5 (or $10 if filing a joint return) to:  (i) one of the major 
  7.7   political parties; (ii) any minor political party as defined in 
  7.8   section 10A.01, subdivision 13, which qualifies under the 
  7.9   provisions of subdivision 3a; or (iii) all qualifying candidates 
  7.10  as provided by subdivision 7.  The renter and homeowner property 
  7.11  tax refund return shall include instructions that the individual 
  7.12  filing the return may ~~designate~~ direct $5 on the return only if 
  7.13  the individual has not ~~designated~~ directed $5 on the income tax 
  7.14  return. 
  7.15     Sec. 11.  Minnesota Statutes 1998, section 10A.31, 
  7.16  subdivision 4, is amended to read: 
  7.17     Subd. 4.  [APPROPRIATION.] (a) The amounts ~~designated by~~ 
  7.18  ~~individuals for~~ paid to the state elections campaign fund, less 
  7.19  three percent, are appropriated from the general fund and shall 
  7.20  be credited to the appropriate account in the state elections 
  7.21  campaign fund and annually appropriated for distribution as set 
  7.22  forth in subdivisions 5, 6 and 7.  An amount equal to three 
  7.23  percent shall be retained in the general fund for administrative 
  7.24  costs.  
  7.25     (b) In addition to the amounts in paragraph (a), ~~$1,500,000~~ 
  7.26  for each general election there is appropriated from the general 
  7.27  fund to the general account of the state elections campaign fund 
  7.28  a sum sufficient to bring the distributions to candidates up to 
  7.29  the limits in subdivisions 6 and 7. 
  7.30     Sec. 12.  Minnesota Statutes 1998, section 10A.31, 
  7.31  subdivision 6, is amended to read: 
  7.32     Subd. 6.  [DISTRIBUTION OF PARTY ACCOUNTS.] (a) As soon as 
  7.33  the board has obtained from the secretary of state the names of 
  7.34  the candidates for constitutional officer who have filed for 
  7.35  office, but in any event no later than two weeks after the close 
  7.36  of filings, the board shall distribute the available funds in 
  8.1   each party account, as certified by the commissioner of revenue 
  8.2   on July 1, to the candidates of that party for constitutional 
  8.3   officer who have signed the agreement as provided in section 
  8.4   10A.322 and filed the affidavit required by section 10A.323, and 
  8.5   whose names are to appear on the ballot in the primary election, 
  8.6   according to the allocations set forth in subdivision 5, but not 
  8.7   more than 80 percent of the primary election expenditure limit.  
  8.8   A candidate who is unopposed in the primary election may not be 
  8.9   paid more than 20 percent of the primary election expenditure 
  8.10  limit and may not spend more than that amount.  
  8.11     (b) As soon as the board has obtained from the secretary of 
  8.12  state the results of the primary election, but in any event no 
  8.13  later than one week after certification by the state canvassing 
  8.14  board of the results of the primary, the board shall distribute 
  8.15  the available funds in each party account, as certified by the 
  8.16  commissioner of revenue on September 1, to the candidates of 
  8.17  that party who have signed the agreement as provided in section 
  8.18  10A.322 and filed the affidavit required by section 10A.323, and 
  8.19  whose names are to appear on the ballot in the general election, 
  8.20  according to the allocations set forth in subdivision 5.  ~~If a~~ 
  8.21  ~~candidate files the affidavit required by section 10A.323 after~~ 
  8.22  ~~September 1 of the general election year, the board shall pay~~ 
  8.23  ~~the candidate's allocation to the candidate at the next regular~~ 
  8.24  ~~payment date for public subsidies for that election cycle that~~ 
  8.25  ~~occurs at least 15 days after the candidate files the~~ 
  8.26  ~~affidavit~~ The distribution to candidates for constitutional 
  8.27  officer must not be more than 80 percent of the general election 
  8.28  expenditure limit.  
  8.29     Sec. 13.  Minnesota Statutes 1998, section 10A.31, 
  8.30  subdivision 7, is amended to read: 
  8.31     Subd. 7.  [DISTRIBUTION OF GENERAL ACCOUNT.] (a) At the 
  8.32  same time as it distributes money from the party account to 
  8.33  candidates for constitutional officer under subdivision 6, the 
  8.34  board shall distribute the available funds in the general 
  8.35  account, as certified by the commissioner of revenue on July 1 
  8.36  and according to the allocations set forth in subdivision 5, to 
  9.1   all major party candidates for constitutional officer who have 
  9.2   signed a spending limit agreement under section 10A.322 and 
  9.3   filed the affidavit of contributions required by section 
  9.4   10A.323, provided that the public subsidy under this subdivision 
  9.5   may not be paid to a candidate for constitutional officer in an 
  9.6   amount that would cause the sum of the public subsidy paid from 
  9.7   the party account plus the public subsidy paid from the general 
  9.8   account to exceed 80 percent of the expenditure limit for the 
  9.9   candidate. 
  9.10     (b) Within two weeks after certification by the state 
  9.11  canvassing board of the results of the general election, the 
  9.12  board shall distribute the available funds in the general 
  9.13  account, as certified by the commissioner of revenue on November 
  9.14  1 and according to allocations set forth in subdivision 5, in 
  9.15  equal amounts to all candidates for ~~each statewide office who~~ 
  9.16  ~~received at least five percent of the votes cast in the general~~ 
  9.17  ~~election for that office, and to all candidates for~~ legislative 
  9.18  office who received at least ten percent of the votes cast in 
  9.19  the general election for the specific office for which they were 
  9.20  candidates, provided that the public subsidy under this 
  9.21  subdivision may not be paid in an amount that would cause the 
  9.22  sum of the public subsidy paid from the party account plus the 
  9.23  public subsidy paid from the general account ~~and the public~~ 
  9.24  ~~subsidy paid to match independent expenditures~~ to exceed 50 
  9.25  percent of the expenditure limit for the candidate.  ~~If a~~ 
  9.26  ~~candidate is entitled to receive an opponent's share of the~~ 
  9.27  ~~general account public subsidy under section 10A.25, subdivision~~ 
  9.28  ~~10, the opponent's share must be excluded in calculating the 50~~ 
  9.29  ~~percent limit.~~  Money from the general account not paid to a 
  9.30  candidate because of the 50 percent or 80 percent limit must be 
  9.31  distributed equally among all other qualifying candidates for 
  9.32  the same office until all have reached the 50 percent or 80 
  9.33  percent limit ~~or the balance in the general account is~~ 
  9.34  ~~exhausted.  The board shall not use the information contained in~~ 
  9.35  ~~the report of the principal campaign committee of any candidate~~ 
  9.36  ~~due ten days before the general election for the purpose of~~ 
 10.1   ~~reducing the amount due that candidate from the general account~~. 
 10.2      Sec. 14.  Minnesota Statutes 1998, section 10A.31, 
 10.3   subdivision 12, is amended to read: 
 10.4      Subd. 12.  [UNOPPOSED CANDIDATE NOT ELIGIBLE.] A candidate 
 10.5   for constitutional officer who is unopposed in the general 
 10.6   election is not eligible to receive a public subsidy from the 
 10.7   state election campaign fund.  A candidate for state senator or 
 10.8   state representative who is unopposed in both the primary 
 10.9   election and the general election is not eligible to receive a 
 10.10  public subsidy from the state election campaign fund.  The 
 10.11  subsidy from the party account the candidate would otherwise 
 10.12  have been eligible to receive must be paid to the candidate's 
 10.13  political party to be deposited in a special account under 
 10.14  section 10A.31, subdivision 5, clause (6), and used for only 
 10.15  those items permitted under section 10A.275.  
 10.16     Sec. 15.  Minnesota Statutes 1998, section 10A.322, 
 10.17  subdivision 1, is amended to read: 
 10.18     Subdivision 1.  [AGREEMENT BY CANDIDATE.] (a) As a 
 10.19  condition of receiving a public subsidy, a candidate shall sign 
 10.20  and file with the board a written agreement in which the 
 10.21  candidate agrees that the candidate will comply with sections 
 10.22  10A.25 and 10A.324. 
 10.23     (b) Before the first day of filing for office, the board 
 10.24  shall forward agreement forms to all filing officers.  The board 
 10.25  shall also provide agreement forms to candidates on request at 
 10.26  any time.  The candidate may sign an agreement and submit it to 
 10.27  ~~the filing officer on the day of filing an affidavit of~~ 
 10.28  ~~candidacy or petition to appear on the ballot, in which case the~~ 
 10.29  ~~filing officer shall without delay forward signed agreements to~~ 
 10.30  ~~the board.  Alternatively, the candidate may submit the~~ 
 10.31  ~~agreement directly to~~ the board at any time ~~before September 1~~ 
 10.32  ~~preceding the general election~~ within five days after the close 
 10.33  of filings.  An agreement may not be filed after that date.  An 
 10.34  agreement once filed may not be rescinded. 
 10.35     (c) The board shall ~~forward a copy~~ notify the commissioner 
 10.36  of revenue of any agreement signed under this subdivision ~~to the~~ 
 11.1   ~~commissioner of revenue~~.  
 11.2      (d) Notwithstanding any provisions of this section, when a 
 11.3   vacancy occurs that will be filled by means of a special 
 11.4   election and the filing period does not coincide with the filing 
 11.5   period for the general election, a candidate may sign and submit 
 11.6   a spending limit agreement at any time before the deadline for 
 11.7   submission of a signed agreement under section 10A.315. 
 11.8      Sec. 16.  Minnesota Statutes 1998, section 10A.323, is 
 11.9   amended to read: 
 11.10     10A.323 [MATCHING REQUIREMENTS.] 
 11.11     In addition to the requirements of section 10A.322, to be 
 11.12  eligible to receive a public subsidy under section 10A.31 a 
 11.13  candidate or the candidate's treasurer shall file an affidavit 
 11.14  with the board stating that during that calendar year the 
 11.15  candidate has accumulated contributions from persons eligible to 
 11.16  vote in this state in the amount indicated for the office 
 11.17  sought, counting only the first $50 received from each 
 11.18  contributor: 
 11.19     (1) candidates for governor and lieutenant governor running 
 11.20  together, ~~$35,000~~ $60,000; 
 11.21     (2) candidates for attorney general, ~~$15,000~~ $25,000; 
 11.22     (3) candidates for secretary of state, state treasurer, and 
 11.23  state auditor, separately, ~~$6,000~~ $10,000; 
 11.24     (4) candidates for the senate, $3,000; and 
 11.25     (5) candidates for the house of representatives, $1,500. 
 11.26     The affidavit must state the total amount of contributions 
 11.27  that have been received from persons eligible to vote in this 
 11.28  state ~~and the total amount of those contributions received~~, 
 11.29  disregarding the portion of any contribution in excess of $50.  
 11.30     The candidate or the candidate's treasurer shall submit the 
 11.31  affidavit required by this section to the board in writing by 
 11.32  ~~September~~ July 1 of the general election year ~~to receive the~~ 
 11.33  ~~payment based on the results of the primary election, by~~ 
 11.34  ~~September 15 to receive the payment made October 1, by October 1~~ 
 11.35  ~~to receive the payment made October 15, by November 1 to receive~~ 
 11.36  ~~the payment made November 15, and by December 1 to receive the~~ 
 12.1   ~~payment made December 15~~. 
 12.2      Sec. 17.  [EFFECTIVE DATE.] 
 12.3      This act is effective January 1, 2000.