Campaign finance and public disclosure board required to impose fees and civil penalties for various violations, fees and civil penalties allowed to be waived for good cause only in certain circumstances, and annual report required.

A bill for an act

relating to campaign finance; requiring the campaign finance and public disclosure

board to impose fees and civil penalties for various violations; allowing fees and

civil penalties to be waived for good cause only in certain circumstances; requiring

an annual report; amending Minnesota Statutes 2024, sections 10A.01, by adding

subdivisions; 10A.02, subdivision 15; 10A.025, subdivisions 2, 3, 4, 5; 10A.12,

subdivision 1b; 10A.14, subdivision 4; 10A.20, subdivision 12; 10A.244,

subdivision 4; 10A.27, subdivision 13; 10A.29.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2024, section 10A.01, is amended by adding a subdivision

to read:

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Subd. 16d.

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Enhanced penalty.

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"Enhanced penalty" means a mandatory late fee or civil

penalty imposed by the board that applies after a $25,000 threshold is exceeded or is

determined using a multiplier or percentage under sections 10A.025, subdivision 2, 3, 4, or

5; 10A.12, subdivision 1b; 10A.14, subdivision 4; 10A.20, subdivision 12; 10A.244,

subdivision 4; 10A.27, subdivision 13; and 10A.29.

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Sec. 2.

Minnesota Statutes 2024, section 10A.01, is amended by adding a subdivision to

read:

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Subd. 26c.

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Total contributions.

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"Total contributions" means the total of all contributions.

Contributions include all contributions received, in-kind contributions received, loans, and

any other types of contributions.

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Sec. 3.

Minnesota Statutes 2024, section 10A.01, is amended by adding a subdivision to

read:

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Subd. 26d.

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Total disbursements.

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"Total disbursements" means the total of all

disbursements. Disbursements include expenditures, in-kind expenditures, approved

expenditures, contributions made, in-kind contributions made, independent expenditures,

noncampaign disbursements, electioneering communications, and any other types of

expenditures and disbursements.

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Sec. 4.

Minnesota Statutes 2024, section 10A.02, subdivision 15, is amended to read:

Subd. 15.

Fees and penalties.

(a) Upon written request, certified pursuant to section

10A.025, subdivision 2
, the board must waive that portion of a late filing fee or a civil

penalty imposed for the late filing of a report or statement under this chapter for which the

requester demonstrates good cause for the late filing or submission.

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(b) Notwithstanding paragraph (a), the board must not waive any portion of an enhanced

penalty.

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(b)
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(c)
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The board must deposit all fees and civil penalties collected under this chapter

into the general
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fund in the state treasury
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account of the state elections campaign account

in the special revenue fund
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.

Sec. 5.

Minnesota Statutes 2024, section 10A.025, subdivision 2, is amended to read:

Subd. 2.

Penalty for false statements.

(a) A report or statement required to be filed

under this chapter must be signed and certified as true by the individual required to file the

report. The signature may be an electronic signature consisting of a password assigned by

the board.

(b) An individual
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shall
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must
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not sign and certify to be true a report or statement knowing

it contains false information or knowing it omits required information.

(c) An individual
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shall
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must
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not knowingly provide false or incomplete information to

a treasurer with the intent that the treasurer will rely on that information in signing and

certifying to be true a report or statement.

(d) A person who violates paragraph (b) or (c) is subject to a civil penalty imposed by

the board of
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up to $3,000
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an amount equal to four times the amount of the total contributions

and total disbursements that were knowingly false or omitted from the report
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. A violation

of paragraph (b) or (c) is a gross misdemeanor.

(e) The board
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may
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must
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impose
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an additional civil penalty of up to $3,000
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on the principal

campaign committee or candidate, party unit, political committee, or association that has a

political fund that is affiliated with an individual who violated paragraph (b) or (c)
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an

additional civil penalty of an amount equal to four times the amount of the total contributions

and total disbursements that were knowingly omitted from the report
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.

Sec. 6.

Minnesota Statutes 2024, section 10A.025, subdivision 3, is amended to read:

Subd. 3.

Record keeping; penalty.

(a) A person required to file a report or statement

or who has accepted record-keeping responsibility for the filer must maintain records on

the matters required to be reported, including vouchers, canceled checks, bills, invoices,

worksheets, and receipts, that will provide in sufficient detail the necessary information

from which the filed reports and statements may be verified, explained, clarified, and checked

for accuracy and completeness. The person must keep the records available for audit,

inspection, or examination by the board or its authorized representatives for four years from

the date of filing of the reports or statements or of changes or corrections to them.

(b) The board
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may
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must
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impose a civil penalty
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of up to $3,000
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on a person who

knowingly violates this subdivision
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of an amount equal to four times the amount reflected

on the missing records
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.

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(c)
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The board may impose
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a separate civil penalty of up to $3,000
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on the principal

campaign committee or candidate, party unit, political committee, or association that has a

political fund that is affiliated with an individual who violated this subdivision
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a separate

civil penalty of an amount equal to four times the amount reflected on the missing records
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.

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(c)
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(d)
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A knowing violation of this subdivision is a misdemeanor.

Sec. 7.

Minnesota Statutes 2024, section 10A.025, subdivision 4, is amended to read:

Subd. 4.

Changes and corrections.

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(a)
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Material changes in information previously

submitted and corrections to a report or statement must be reported in writing to the board

within ten days following the date of the event prompting the change or the date upon which

the person filing became aware of the inaccuracy. The change or correction must identify

the form and the paragraph containing the information to be changed or corrected. A request

from the board to a lobbyist to provide more detailed information about a specific subject

of interest disclosed on a lobbyist disbursement report is a change or correction governed

by this subdivision.

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(b)
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A person who willfully fails to report a material change or correction is subject to a

civil penalty imposed by the board of
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up to $3,000
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four times the amount of the required

change or correction in the report
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. A willful violation of this subdivision is a gross

misdemeanor.

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(c)
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The board must send a written notice to any individual who fails to file a report

required by this subdivision. If the individual fails to file the required report within ten

business days after the notice was sent, the board may impose a late filing fee of $25 per

day up to $1,000 starting on the 11th day after the notice was sent.

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(d)
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The board may send an additional notice by certified mail to an individual who fails

to file a report within ten business days after the first notice was sent by the board. The

certified notice must state that if the individual does not file the requested report within ten

business days after the certified notice was sent, the individual may be subject to a civil

penalty for failure to file a report. an individual who fails to file a report required by this

subdivision within ten business days after the certified notice was sent by the board is subject

to a civil penalty imposed by the board of up to $1,000.

Sec. 8.

Minnesota Statutes 2024, section 10A.025, subdivision 5, is amended to read:

Subd. 5.

Reconciliation information; penalty.

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(a)
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An individual or association required

to file a report under this chapter must provide information requested by the board to

reconcile discrepancies between the report and reports filed by other individuals or

associations. The board's request for information must be in writing. If the individual or

association fails to provide the requested information within ten business days after the

request was sent, the board may impose a late filing fee of $25 per day up to $1,000.

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(b)
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The board may send notice by certified mail to an individual or association that has

not timely responded to the board's written request for reconciliation information. The

certified notice must state that if the individual or association does not respond to the board's

request for information within ten business days after the certified notice was sent, the

individual or association may be subject to a civil penalty for failure to provide information

to the board. an individual or association that does not provide the requested information

within ten business days after the certified notice was sent is subject to a civil penalty

imposed by the board of up to $1,000.

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(c)
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A person who willfully fails to cooperate with the board to reconcile a report

discrepancy is subject to a civil penalty imposed by the board of
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up to $3,000
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an amount

equal to four times the discrepancy
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.

Sec. 9.

Minnesota Statutes 2024, section 10A.12, subdivision 1b, is amended to read:

Subd. 1b.

Penalty for noncompliant independent expenditure.

An association that

makes an independent expenditure without complying with subdivision 1a is subject to a

civil penalty of up to four times the amount of the independent expenditure,
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but not to exceed

$25,000,
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except when the violation was intentional.
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When the violation is intentional, the

board must impose a civil penalty of ten times the amount of the independent expenditure.

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Sec. 10.

Minnesota Statutes 2024, section 10A.14, subdivision 4, is amended to read:

Subd. 4.

Failure to file; penalty.

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(a)
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If an individual fails to file a statement required

by this section by the date that the statement was due, the board may impose a late filing

fee of $25 per day, not to exceed $1,000, starting on the day after the statement was due.
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If

a report filed with the board reflects total contributions or total expenditures of more than

$25,000 that were not timely disclosed due to a late registration statement, the board must

instead impose a late filing fee of ten percent of that total, per day, starting on the day after

the report was due.
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(b)
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The board must send notice by certified mail to any individual who fails to file a

statement within ten business days after the statement was due that the individual may be

subject to a civil penalty for failure to file the statement. an individual who fails to file the

statement within seven days after the certified mail notice was sent by the board is subject

to a civil penalty imposed by the board of up to $1,000.
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If a statement required by subdivision

1 is not filed within seven days after the certified mail notice was sent by the board and a

report filed with the board shows that the committee, fund, or party unit has total

contributions or total disbursements in excess of $25,000 that were not timely disclosed

due to the late registration statement, the board must impose a civil penalty of an amount

equal to four times the amount of total contributions or total disbursements that were not

timely disclosed, whichever is greater.
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Sec. 11.

Minnesota Statutes 2024, section 10A.20, subdivision 12, is amended to read:

Subd. 12.

Failure to file; late fees; penalty.

(a) If an individual or association fails to

file a report required by this section or section
10A.202
, the board may impose a late filing

fee and a civil penalty as provided in this subdivision.

(b) If a candidate, political committee, political fund, principal campaign committee, or

party unit fails to file a report required by this section that is due January 31, the board may

impose a late filing fee of $25 per day, not to exceed $1,000, commencing the day after the

report was due.

(c) Except for reports governed by paragraph (b), if an individual, political committee,

political fund, principal campaign committee, party unit, or association fails to file a report

required by subdivision 2, 2a,
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or
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5,
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or 5a,
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or by section
10A.202
, the board may impose a

late filing fee of $50 per day, not to exceed $1,000, commencing on the day after the date

the
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statement
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report
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was due. If the total
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expenditures
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contributions
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or
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total
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disbursements
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exceed $250,000 or the total contributions or total disbursements
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that
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occurred during the

reporting period exceeds
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were required to be disclosed for the first time exceed
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$25,000,

then the board
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may
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must
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also impose a late filing fee of
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up to two
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ten
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percent of the
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expenditures or disbursements
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total contributions or total disbursements, whichever is

greater,
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that should have been reported, per day, commencing on the day after the report

was due, not to exceed 100 percent of the amount that should have been reported.

(d) If an individual, political committee, political fund, principal campaign committee,

party unit, or association has been assessed a late filing fee or civil penalty under this

subdivision during the prior four years, the board may impose a late filing fee, a civil penalty,

or both of up to twice the amount otherwise authorized by this subdivision. If an individual,

political committee, political fund, principal campaign committee, party unit, or association

has been assessed a late filing fee
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or civil penalty
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under this subdivision more than two

times during the prior four years, the board may impose a late filing fee
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or civil penalty, or

both,
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of up to three times the amount otherwise authorized by this subdivision.

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(e) If an individual, political committee, political fund, principal campaign committee,

party unit, or association has been assessed an enhanced penalty during the prior four years,

the board must impose a late filing fee, a civil penalty, or both, of up to twice the amount

otherwise authorized by this subdivision. If an individual, political committee, political

fund, principal campaign committee, party unit, or association has been assessed an enhanced

penalty more than two times during the prior four years, the board must impose a late filing

fee, a civil penalty, or both, of up to three times the amount otherwise authorized by this

subdivision.

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(e)
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(f)
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Within ten business days after the report was due or receipt by the board of

information disclosing the potential failure to file a report required by this section, the board

must send notice by certified mail that the individual or association may be subject to a civil

penalty for failure to file the report. An individual who fails to file the report within seven

days after the certified mail notice was sent by the board is subject to a civil penalty imposed

by the board of up to $2,000 in addition to the late filing fees imposed by this subdivision.
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If the total contributions or total disbursements exceed $250,000 or the total contributions

or total disbursements that were required to be disclosed for the first time within the report

exceed $25,000, the board must impose a civil penalty of an amount equal to four times the

amount of the total contributions or total disbursements that should have been reported,

whichever is greater.
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Sec. 12.

Minnesota Statutes 2024, section 10A.244, subdivision 4, is amended to read:

Subd. 4.

Penalty for financial activity while in voluntary inactive status.

If an

association fails to notify the board of its political fund's resumption of active status under

subdivision 3, the board may impose a civil penalty of $50 per day, not to exceed $1,000

commencing on the 15th calendar day after the fund resumed active status.
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If the total

contributions or total disbursements are greater than $25,000 while in voluntary inactive

status and prior to filing the notice required by subdivision 3, the board must:

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(1) impose a late fee of ten percent of the larger of the total contributions or the total

disbursements per day starting on the day after the notification was due; and

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(2) impose a civil penalty of an amount that is equal to four times the amount of

unreported total contributions or unreported total disbursements, whichever is greater.

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Sec. 13.

Minnesota Statutes 2024, section 10A.27, subdivision 13, is amended to read:

Subd. 13.

Unregistered association limit; statement; penalty.

(a) The treasurer of a

political committee, political fund, principal campaign committee, or party unit must not

accept a contribution of more than $200 from an association not registered under this chapter

unless the contribution is accompanied by a statement that meets the disclosure and reporting

period requirements imposed by section
10A.20
. The statement may be a written statement

or a government website where the disclosure report for the unregistered association may

be viewed. This statement must be certified as true and correct by an officer of the

contributing association. The committee, fund, or party unit that accepts the contribution

must include a copy of the written statement or website with the report that discloses the

contribution to the board.

(b) An unregistered association may provide the statement required by this subdivision

to no more than three committees, funds, or party units in
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a calendar year
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an election segment
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.

Each statement must cover at least the 30 days immediately preceding and including the

date on which the contribution was made. An unregistered association or an officer of it is

subject to a civil penalty imposed by the board of up to $1,000, if the association or its

officer:

(1) fails to provide a statement as required by this subdivision; or

(2) fails to register after giving the statement required by this subdivision to more than

three committees, funds, or party units in
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a calendar year
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an election segment
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.

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If an association violates clause (2) and the total contributions during the election segment

exceed $25,000, the board must impose on the association a civil penalty of an amount

equal to four times the amount contributed to all committees, funds, or party units in the

election segment.

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(c) The treasurer of a political committee, political fund, principal campaign committee,

or party unit who accepts a contribution in excess of $200 from an unregistered association

without the required disclosure statement is subject to a civil penalty up to four times the

amount in excess of $200.

(d) This subdivision does not apply:

(1) when a national political party contributes money to its state committee;

(2) when a federal committee of a major or minor political party registered with the

board gives an in-kind contribution to the federal committee's state central committee or a

party organization within a house of the state legislature; or

(3) to purchases by candidates for federal office of tickets to events or space rental at

events held by party units in this state (i) if the geographical area represented by the party

unit includes any part of the geographical area of the office that the federal candidate is

seeking and (ii) the purchase price is not more than that paid by other attendees or renters

of similar spaces.

Sec. 14.

Minnesota Statutes 2024, section 10A.29, is amended to read:

10A.29 CIRCUMVENTION PROHIBITED.

An individual or association that attempts to circumvent this chapter by redirecting a

contribution through, or making a contribution on behalf of, another individual or association

is guilty of a gross misdemeanor and subject to a civil penalty imposed by the board of
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up

to $3,000
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an amount equal to four times the contribution
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.

Sec. 15.
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EFFECTIVE DATE.
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This act is effective January 1, 2027.

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