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A bill for an act
relating to campaign finance; modifying certain late fees and civil penalties;
establishing enhanced penalties; prohibiting the board from waiving enhanced
penalties; depositing a portion of late fees and civil penalties into the state elections
campaign account; providing definitions; amending Minnesota Statutes 2024,
sections 10A.01, by adding subdivisions; 10A.02, subdivision 15; 10A.025,
subdivisions 2, 3, 4, 5, by adding a subdivision; 10A.20, subdivision 12, by adding
a subdivision.
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. 9b.
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Campaign finance report.
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"Campaign finance report" means a report or
statement required under section 10A.20, 10A.202, or 10A.323.
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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. 16d.
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Enhanced penalty.
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"Enhanced penalty" means a late fee or civil penalty
imposed by the board that applies after a $25,000 or $100,000 threshold is exceeded and is
determined using a multiplier or percentage.
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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. 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. 4.
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. 5.
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
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all
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the first $49,000 in
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fees and civil penalties collected
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each fiscal year
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under this chapter into the general fund in the state treasury.
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The board
must deposit any additional fees and civil penalties collected under this chapter into the
general account of the state elections campaign account in the special revenue fund.
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Sec. 6.
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
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willfully
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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
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knowingly
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willfully
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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)
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The board must impose a civil penalty on
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a person who violates paragraph (b) or (c)
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is subject to a civil penalty imposed by the board of
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. For campaign finance reports, the
penalty is up to four times the sum of the following amounts that were willfully false or
omitted: the beginning cash balance, total contributions, and total disbursements. For
campaign finance reports where more than $25,000 was willfully false or omitted, the
penalty must instead be equal to four times the amount that was willfully false or willfully
omitted. For all other reports, the penalty is
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up to $3,000.
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(e)
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A violation of paragraph (b) or (c) is a gross misdemeanor.
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(e)
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(f)
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The board may 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 up to four times the amount of the beginning cash
balance, total contributions, and total disbursements that were willfully false or willfully
omitted from the report
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.
Sec. 7.
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
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knowingly
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willfully
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violates this subdivision.
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For violations related to campaign finance
reports, the penalty is up to four times the amount reflected on the missing records. For
violations where the amount reflected on the missing campaign finance records exceeds
$25,000, the penalty must be equal to four times the amount reflected on the missing
campaign finance records. For all other violations, the civil penalty is up to $3,000.
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(c)
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The board may impose a separate civil penalty of up to
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$3,000
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an amount equal to
four times the amount reflected on the missing campaign finance records
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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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(c)
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(d)
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A
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knowing
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willful
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violation of this subdivision is a misdemeanor.
Sec. 8.
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) The board must impose a civil penalty on
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a person who willfully fails to report a
material change or correction
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is subject to a civil penalty imposed by the board of
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. For
campaign finance reports, the penalty is
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up to
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four times the amount of the required change
or correction that the person willfully failed to report. For a violation related to a campaign
finance report where the amount of the required change or correction exceeds $25,000, the
penalty must be equal to four times the amount of the required change or correction that
the person willfully failed to report. For all other reports, the penalty is up to
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$3,000.
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(c)
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A willful violation of this subdivision is a gross misdemeanor.
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(d)
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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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(e)
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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. 9.
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) The board must impose a civil penalty on
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a person who willfully fails to cooperate
with the board to reconcile a report discrepancy
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is subject to a civil penalty imposed by the
board of
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. For discrepancies related to campaign finance reports, the penalty is
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up to
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four
times the amount of the discrepancy about which the person willfully failed to cooperate.
For violations related to a campaign finance report where the amount of the discrepancy
exceeds $25,000, the penalty must be equal to four times the amount of the discrepancy
about which the person willfully failed to cooperate. For all other reports, the penalty is up
to
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$3,000.
Sec. 10.
Minnesota Statutes 2024, section 10A.025, is amended by adding a subdivision
to read:
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Subd. 6.
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Penalty.
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A late fee or civil penalty related to a campaign finance report assessed
to a treasurer or candidate pursuant to this section may be paid by the treasurer's or candidate's
principal campaign committee, party unit, political committee, or association that has a
political fund.
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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)
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If
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This subdivision governs late filing
fees and civil penalties in instances when
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an individual or association fails to file a report
required by this section or section
10A.202
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, the board may impose a late filing fee and a
civil penalty as provided in this subdivision
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.
(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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5a, 6, or 14,
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or by section
10A.202
,
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late filing fees are
as follows:
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(1) for reports not governed by clause (2), (3), or (4),
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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
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. If
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;
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(2) for reports due 15 days before the primary and reports due ten days before the general
election on which the total contributions or total disbursements that should have been newly
reported exceed $100,000, the board must impose a late filing fee of one percent of the total
contributions or total disbursements that should have been newly reported, whichever is
greater, per day, commencing on the day after the report was due;
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(3) for a report required by subdivision 5 or 5a or section 10A.202 on which
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the total
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expenditures or
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contributions or total
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disbursements
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that occurred during the reporting
period exceeds
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exceed
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$25,000,
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then
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the board
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may also
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must
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impose a late filing fee of
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up
to two
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four
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percent of the
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expenditures or
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total contributions or total
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disbursements that
should have been reported,
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whichever is greater,
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per day, commencing on the day after the
report was due
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, not to exceed 100 percent of the amount that should have been reported.
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;
or
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(4) for willful violations of clause (2) or (3), the board must instead impose a late filing
fee of twice that required by that clause, per day, commencing on the day after the report
was due.
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(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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If a late
filing fee and civil penalty are related to the same report or statement, the late filing fee and
civil penalty count as a single penalty for purposes of this paragraph.
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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. If a late filing fee and civil penalty are related to the same report or statement,
the late filing fee and civil penalty count as a single penalty for purposes of this paragraph.
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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.
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If
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an individual
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who
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fails to file the report within seven
days after the certified mail notice was sent by the board
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, civil penalties are as follows:
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(1) for reports not governed by clause (2), (3), or (4), the individual
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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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.
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;
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(2) for reports due 15 days before the primary and reports due ten days before the general
election on which the total contributions or total disbursements that should have been newly
reported exceed $100,000, the board must impose a civil penalty of 100 percent of the total
contributions or total disbursements that should have been newly reported, whichever is
greater;
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(3) for a report required by subdivision 5 or 5a or section 10A.202 in which total
contributions or total disbursements exceed $25,000, the board must impose a civil penalty
of 100 percent of the total contributions or total disbursements that should have been reported,
whichever is greater; or
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(4) for willful violations of clauses (2) and (3), the board must instead impose a civil
penalty of twice that required by that clause.
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Sec. 12.
Minnesota Statutes 2024, section 10A.20, is amended by adding a subdivision to
read:
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Subd. 16.
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Penalty.
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A late filing fee or civil penalty assessed to a treasurer or candidate
pursuant to this section may be paid by the treasurer's or candidate's principal campaign
committee, party unit, political committee, or association that has a political fund.
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Sec. 13.
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EFFECTIVE DATE.
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This act is effective August 12, 2026, and applies to reports and statements due on or
after that date.
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