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S.F. No. 2402 - Campaign Finance Technical Bill (Third Engrossment)
 
Author: Senator John A. Hoffman
 
Prepared By: Alexis C. Stangl, Senate Counsel (651/296-4397)
 
Date: March 27, 2014



 

Sections 1 and 13 make technical changes regarding how threshold amounts are referenced. 

Section 2 increases the monetary threshold at which an individual is considered a candidate from $100 to $750.  This is consistent with the threshold at which a candidate must register a campaign committee with the board or start filing certain reports with the board. 

Section 3 specifies that the executive director is not an ex officio member of the board.

Section 4 provides that the board may only vote on a matter if the matter was placed on an agenda, and supporting material was provided, at least seven days before the meeting. The board may waive this requirement by unanimous vote.

Section 5 requires the board to issue rules that specify the procedures to be followed for audits and investigations by the board. The rules must address, at a minimum: the process for initiating and overseeing an investigation; when summary proceedings are available; dedication of staff resources for investigations; parties rights to be heard by the board; and board hearings and dispositions of complaints, audits, and investigations.  The board may use the expedited rulemaking process.

Section 6 provides that when the board receives a written complaint, the board must immediately provide a copy of the complaint to the subject of the complaint and notify the subject that he or she may submit a written response within 15 days. Within 30 days of receiving the complaint, the board must making findings and conclusions as to whether the complaint alleges a prima facie violation.  If the board finds that the complaint does make a prima facie violation, the board must then make findings and conclusions as to whether probable cause exists to believe the alleged violation has occurred.  This determination must be made within 45 days after the prima facie determination.  The filer of the complaint and the subject of the complaint must be given an opportunity to be heard by the board before the probable cause determination is made.  If the board finds that probable cause exists to believe the violation has occurred, the board must undertake an investigation.  At the conclusion of the investigation, the board must issue an order.  In an investigation not initiated by written complaint to the board, the board must not make findings and conclusions or issue an order unless the subject of the investigation is given notice and an opportunity to be heard by the board at a hearing to determine whether probable cause exists to believe a violation has occurred.  The subject of an investigation must be given an opportunity to answer the allegations of the complaint or investigation and to appear before the board before a final determination is made; this opportunity is in addition to the initial opportunity to be heard by the board related to the probable cause determination.  A hearing or action of the board concerning a complaint or investigation is confidential, including appearances before the board.  The board's initial determination as to whether probable cause exists to believe a violation has occurred and findings, conclusions, and orders at the end of an investigation are public data.  Until the board makes a public finding concluding that probable cause does not exist to believe a violation has occurred or an order at the end of the investigation, certain information is private.

Section 7 replaces the probable cause standard with the prima facie standard established in section 6.

Section 8 allows the board to develop and maintain systems that allow treasurers to enter and store electronic records online.  Data in the system is not governed by the Minnesota Government Data Practices Act until it is submitted in a report to the board, at which time it is government data.  The data cannot be used or accessed by the board without written consent. 

Section 9 requires the board to send written notice to an individual who fails to report a material change or correction; the requirement that notice be sent by certified mail is deleted.  The late filing fee is increased from $5 per day to $25 per day.  The total of the late filing fee imposed is increased from $100 to $1,000.  The board may later send a second notice by certified mail that an additional civil penalty may be imposed if the report is not filed.

Section 10 requires individuals and associations that file reports with the board to provide information requested by the board to assist in reconciling differences between reports filed by the individual or association and reports by other entities.  Two notices are required and late filing fees and other penalties may be imposed if information is not provided. 

Section 11 requires a judge or county commissioner to file a statement of economic interest within 60 days of assuming the office.  Conforming changes are made. 

Section 12 provides that retired judges are not required to file a statement of economic interest. 

Section 14 increases the threshold amount for disclosing the names of members whose dues were placed in an association's political fund from $100 to $200.  This is consistent with disclosure thresholds found elsewhere in chapter 10A. 

Section 15 separates the reporting timelines for candidates for constitutional offices and appellate court judicial offices from the timeline for political committees, political funds, and state party committees.  Political committees, political funds, and state party committees are no longer required to submit a pre-general election report covering the year through July 15.  The principal campaign committee of a candidate for a constitutional office or appellate court judicial seat must submit reports at the same intervals under current law, except they are no longer required to submit a pre-general election report covering the year through July 15. The principal campaign committee of a candidate who did not file for office is not required to file either pre-election report.  Technical changes are also made. 

Section 16 changes a reference to an election cycle to an election segment to be consistent with changes made in chapter 10A in the 2013 session. 

Section 17 requires the board to publish the expenditure limits on the board’s Web site instead of in the state register. 

Section 18 deletes references to probable cause and the process to bring an action to collect civil penalties.  The board is still required to make a public finding as to whether there is a reason to believe an excess expenditure has been made or excess contributions have been accepted. 

Section 19 specifies in the Minnesota Government Data Practice Act chapter that the data in the electronic reporting system created in section 5 is not government data. 

Section 20 specifies that in the required report that “total cash on hand” is “total cash on hand designated for political purposes.”  Technical changes are made.

Section 21 requires the board to adopt the rules required by section 5 by December 30, 2014.

Section 22 repeals a subdivision which requires suspension of a public official, except a member of the legislature or constitutional officer, if a required statement of economic interest is not filed.

Section 23 provides for an immediate effective date.

ACS/syl

 
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