1.1.................... moves to amend S.F. No. 888, the first unofficial engrossment
1.2(UES0888-1), as follows:
1.3Page 30, after line 2, insert:

1.4    "Sec. 8. Minnesota Statutes 2014, section 10A.01, subdivision 16a, is amended to read:
1.5    Subd. 16a. Expressly advocating. "Expressly advocating" means:
1.6(1) that a communication clearly identifies a candidate and uses words or phrases
1.7of express advocacy.; or
1.8(2) that a communication when taken as a whole and with limited reference to
1.9external events, such as the proximity to the election, is susceptible of no reasonable
1.10interpretation other than as an appeal advocating the election or defeat of one or more
1.11clearly identified candidates.
1.12EFFECTIVE DATE.This section is effective the day following final enactment."
1.13Page 31, after line 33, insert:

1.14    "Sec. 11. Minnesota Statutes 2014, section 10A.121, subdivision 1, is amended to read:
1.15    Subdivision 1. Permitted disbursements. An independent expenditure political
1.16committee or fund, or a ballot question political committee or fund, may:
1.17    (1) pay costs associated with its fund-raising and general operations;
1.18    (2) pay for communications that do not constitute contributions or approved
1.19expenditures;
1.20    (3) make contributions to independent expenditure or ballot question political
1.21committees or funds;
1.22    (4) make independent expenditures;
1.23    (5) make expenditures to promote or defeat ballot questions;
1.24    (6) return a contribution to its source;
2.1    (7) for a political fund, record bookkeeping entries transferring the association's
2.2general treasury money allocated for political purposes back to the general treasury of
2.3the association; and
2.4    (8) for a political fund, return general treasury money transferred to a separate
2.5depository to the general depository of the association.; and
2.6    (9) make disbursements for electioneering communications.
2.7EFFECTIVE DATE.This section is effective the day following final enactment."
2.8Page 32, after line 6, insert:

2.9    "Sec. 13. Minnesota Statutes 2014, section 10A.20, subdivision 3, is amended to read:
2.10    Subd. 3. Contents of report. (a) The report required by this section must include
2.11each of the items listed in paragraphs (b) to (o) that are applicable to the filer. The board
2.12shall prescribe forms based on filer type indicating which of those items must be included
2.13on the filer's report.
2.14(b) The report must disclose the amount of liquid assets on hand at the beginning
2.15of the reporting period.
2.16(c) The report must disclose the name, address, and employer, or occupation if
2.17self-employed, of each individual or association that has made one or more contributions
2.18to the reporting entity, including the purchase of tickets for a fund-raising effort, that in
2.19aggregate within the year exceed $200 for legislative or statewide candidates or more than
2.20$500 for ballot questions, together with the amount and date of each contribution, and
2.21the aggregate amount of contributions within the year from each source so disclosed. A
2.22donation in kind must be disclosed at its fair market value. An approved expenditure must
2.23be listed as a donation in kind. A donation in kind is considered consumed in the reporting
2.24period in which it is received. The names of contributors must be listed in alphabetical
2.25order. Contributions from the same contributor must be listed under the same name. When
2.26a contribution received from a contributor in a reporting period is added to previously
2.27reported unitemized contributions from the same contributor and the aggregate exceeds
2.28the disclosure threshold of this paragraph, the name, address, and employer, or occupation
2.29if self-employed, of the contributor must then be listed on the report.
2.30(d) The report must disclose the sum of contributions to the reporting entity during
2.31the reporting period.
2.32(e) The report must disclose each loan made or received by the reporting entity
2.33within the year in aggregate in excess of $200, continuously reported until repaid or
2.34forgiven, together with the name, address, occupation, and principal place of business,
2.35if any, of the lender and any endorser and the date and amount of the loan. If a loan
3.1made to the principal campaign committee of a candidate is forgiven or is repaid by an
3.2entity other than that principal campaign committee, it must be reported as a contribution
3.3for the year in which the loan was made.
3.4(f) The report must disclose each receipt over $200 during the reporting period not
3.5otherwise listed under paragraphs (c) to (e).
3.6(g) The report must disclose the sum of all receipts of the reporting entity during
3.7the reporting period.
3.8(h) The report must disclose the following:
3.9(1) the name and address of each individual or association to whom aggregate
3.10expenditures, approved expenditures, independent expenditures, and ballot question
3.11expenditures, and disbursements for electioneering communications have been made by or
3.12on behalf of the reporting entity within the year in excess of $200, together with;
3.13(2) the amount, date, and purpose of each expenditure and;
3.14(3) the name and address of, and office sought by, each candidate on whose behalf
3.15the expenditure was made, or, in the case of electioneering communications, each
3.16candidate identified positively in the communication;
3.17(4) identification of the ballot question that the expenditure was intended to promote
3.18or defeat and an indication of whether the expenditure was to promote or to defeat the
3.19ballot question,; and
3.20(5) in the case of independent expenditures made in opposition to a candidate
3.21or electioneering communications in which a candidate is identified negatively, the
3.22candidate's name, address, and office sought.
3.23A reporting entity making an expenditure on behalf of more than one candidate
3.24for state or legislative office must allocate the expenditure among the candidates on a
3.25reasonable cost basis and report the allocation for each candidate.
3.26(i) The report must disclose the sum of all expenditures made by or on behalf of the
3.27reporting entity during the reporting period.
3.28(j) The report must disclose the amount and nature of an advance of credit incurred
3.29by the reporting entity, continuously reported until paid or forgiven. If an advance of credit
3.30incurred by the principal campaign committee of a candidate is forgiven by the creditor or
3.31paid by an entity other than that principal campaign committee, it must be reported as a
3.32donation in kind for the year in which the advance of credit was made.
3.33(k) The report must disclose the name and address of each political committee,
3.34political fund, principal campaign committee, or party unit to which contributions have
3.35been made that aggregate in excess of $200 within the year and the amount and date of
3.36each contribution.
4.1(l) The report must disclose the sum of all contributions made by the reporting
4.2entity during the reporting period.
4.3(m) The report must disclose the name and address of each individual or association
4.4to whom noncampaign disbursements have been made that aggregate in excess of $200
4.5within the year by or on behalf of the reporting entity and the amount, date, and purpose of
4.6each noncampaign disbursement.
4.7(n) The report must disclose the sum of all noncampaign disbursements made within
4.8the year by or on behalf of the reporting entity.
4.9(o) The report must disclose the name and address of a nonprofit corporation that
4.10provides administrative assistance to a political committee or political fund as authorized
4.11by section 211B.15, subdivision 17, the type of administrative assistance provided, and the
4.12aggregate fair market value of each type of assistance provided to the political committee
4.13or political fund during the reporting period.
4.14EFFECTIVE DATE.This section is effective the day following final enactment.

4.15    Sec. 14. [10A.201] ELECTIONEERING COMMUNICATIONS.
4.16    Subdivision 1. Electioneering communication. (a) "Electioneering
4.17communication" means a communication distributed by television, radio, satellite, or
4.18cable broadcasting system; by means of printed material, signs, or billboards; through the
4.19use of telephone communications; or by electronic mail or electronic text messaging that:
4.20(1) refers to a clearly identified candidate;
4.21(2) is made within:
4.22(i) 30 days before a primary election or special primary election for the office sought
4.23by the candidate; or
4.24(ii) 60 days before a general election or special election for the office sought by
4.25the candidate;
4.26(3) is targeted to the relevant electorate; and
4.27(4) is made without the express or implied consent, authorization, or cooperation
4.28of, and not in concert with or at the request or suggestion of, a candidate or a candidate's
4.29principal campaign committee or agent.
4.30(b) Electioneering communication does not include:
4.31(1) the publishing or broadcasting of news items or editorial comments by the news
4.32media;
4.33(2) a communication that constitutes an approved expenditure or an independent
4.34expenditure;
5.1    (3) a voter guide, which is a pamphlet or similar printed material, intended to help
5.2voters compare candidates' positions on a set of issues, as long as each of the following is
5.3true:
5.4    (i) the guide does not focus on a single issue or a narrow range of issues, but
5.5includes questions and subjects sufficient to encompass major issues of interest to the
5.6entire electorate;
5.7    (ii) the questions and any other description of the issues are clear and unbiased in
5.8both their structure and content;
5.9    (iii) the questions posed and provided to the candidates are identical to those
5.10included in the guide;
5.11    (iv) each candidate included in the guide is given a reasonable amount of time and
5.12the same opportunity as other candidates to respond to the questions;
5.13    (v) if the candidate is given limited choices for an answer to a question, for example:
5.14"support," "oppose," "yes," or "no," the candidate is also given an opportunity, subject to
5.15reasonable limits, to explain the candidate's position in the candidate's own words; the
5.16fact that a candidate provided an explanation is clearly indicated in the guide; and the
5.17guide clearly indicates that the explanations will be made available for public inspection,
5.18subject to reasonable conditions;
5.19    (vi) answers included in the guide are those provided by the candidates in response
5.20to questions, the candidate's answers are unedited, and the answers appear in close
5.21proximity to the question to which they respond;
5.22    (vii) if the guide includes candidates' positions based on information other than
5.23responses provided directly by the candidate, the positions are based on recorded votes
5.24or public statements of the candidates and are presented in an unedited and unbiased
5.25manner; and
5.26    (viii) the guide includes all major party candidates for each office listed in the guide;
5.27(4) any other communication specified in board rules or advisory opinions as being
5.28excluded from the definition of electioneering communication; or
5.29(5) a communication that:
5.30(i) refers to a clearly identified candidate who is an incumbent member of the
5.31legislature or a constitutional officer;
5.32(ii) refers to a clearly identified issue that is or was before the legislature in the
5.33form of an introduced bill; and
5.34(iii) is made when the legislature is in session or within ten days after the last day of
5.35a regular session of the legislature.
6.1(c) A communication that meets the requirements of paragraph (a) but is made with
6.2the authorization or express or implied consent of, or in cooperation or in concert with, or
6.3at the request or suggestion of a candidate, a candidate's principal campaign committee, or
6.4a candidate's agent is an approved expenditure.
6.5    (d) Distributing a voter guide questionnaire, survey, or similar document to
6.6candidates and communications with candidates limited to obtaining their responses,
6.7without more, do not constitute communications that would result in the voter guide being
6.8an approved expenditure on behalf of the candidate.
6.9    Subd. 2. Targeted to relevant electorate. (a) For purposes of this section, a
6.10communication that refers to a clearly identified candidate is targeted to the relevant
6.11electorate if the communication is distributed to or can be received by more than 1,500
6.12persons in the district the candidate seeks to represent, in the case of a candidate for the
6.13house of representatives, senate, or a district court judicial office or by more than 6,000
6.14persons in the state, in the case of a candidate for constitutional office or appellate court
6.15judicial office. When determining the number of persons to whom a communication in the
6.16form of printed material, electronic mail, or electronic text messaging is distributed, an
6.17association may exclude communications distributed to its own members.
6.18    (b) A communication consisting of printed materials, other than signs, billboards,
6.19or advertisements published in the print media, is targeted to the relevant electorate if it
6.20meets the requirements of paragraph (a) and is distributed to voters by means of United
6.21States mail or through direct delivery to a resident's home or business.
6.22    Subd. 3. Disclosure of electioneering communications. (a) Electioneering
6.23communications made by a political committee, a party unit, or a principal campaign
6.24committee must be disclosed on the periodic reports of receipts and expenditures filed by
6.25the association on the schedule and in accordance with the terms of section 10A.20.
6.26(b) An association other than a political committee, party unit, or principal campaign
6.27committee may register a political fund with the board and disclose its electioneering
6.28communications on the reports of receipts and expenditures filed by the political fund.
6.29If it does so, it must disclose its disbursements for electioneering communication on the
6.30schedule and in accordance with the terms of section 10A.20.
6.31(c) An association that does not disclose its disbursements for electioneering
6.32communications under paragraph (a) or (b) must disclose its electioneering
6.33communications according to the requirements of subdivision 4.
6.34    Subd. 4. Statement required for electioneering communications. (a) Except for
6.35associations providing disclosure as specified in subdivision 3, paragraph (a) or (b), every
6.36person who makes a disbursement for the costs of producing or distributing electioneering
7.1communications that aggregate more than $1,500 in a calendar year must, within 24
7.2hours of each disclosure date, file with the board a disclosure statement containing the
7.3information described in this subdivision.
7.4(b) Each statement required to be filed under this section must contain the following
7.5information:
7.6(1) the names of:
7.7(i) the association making the disbursement;
7.8(ii) any person exercising direction or control over the activities of the association
7.9with respect to the disbursement; and
7.10(iii) the custodian of the financial records of the association making the disbursement;
7.11(2) the address of the association making the disbursement;
7.12(3) the amount of each disbursement of more than $200 during the period covered
7.13by the statement, a description of the purpose of the disbursement, and the identification of
7.14the person to whom the disbursement was made;
7.15(4) the names of the candidates identified or to be identified in the communication;
7.16(5) if the disbursements were paid out of a segregated bank account that consists
7.17of funds donated specifically for electioneering communications, the name and address
7.18of each person who gave the association more than $200 in aggregate to that account
7.19during the period beginning on the first day of the preceding calendar year and ending on
7.20the disclosure date; and
7.21(6) if the disbursements for electioneering communications were made using general
7.22treasury money of the association, an association that has paid more than $5,000 in
7.23aggregate for electioneering communications during the calendar year must file with its
7.24disclosure statement a written statement that includes the name, address, and amount
7.25attributable to each person that paid the association membership dues or fees, or made
7.26donations to the association that, in total, aggregate more than $5,000 of the money used
7.27by the association for electioneering communications. The statement must also include
7.28the total amount of the disbursements for electioneering communications attributable to
7.29persons not subject to itemization under this clause. The statement must be certified as
7.30true by an officer of the association that made the disbursements for the electioneering
7.31communications.
7.32(c) To determine the amount of the membership dues or fees, or donations
7.33made by a person to an association and attributable to the association's disbursements
7.34for electioneering communications, the association must separately prorate the total
7.35disbursements made for electioneering communications during the calendar year over all
7.36general treasury money received during the calendar year.
8.1(d) If the amount spent for electioneering communications exceeds the amount of
8.2general treasury money received by the association during that year:
8.3(1) the electioneering communications must be attributed first to all receipts of
8.4general treasury money received during the calendar year in which the electioneering
8.5communications were made;
8.6(2) any amount of current year electioneering communications that exceeds the total
8.7of all receipts of general treasury money during the current calendar year must be prorated
8.8over all general treasury money received in the preceding calendar year; and
8.9(3) if the allocation made in clauses (1) and (2) is insufficient to cover the subject
8.10electioneering communications, no further allocation is required.
8.11(e) After a portion of the general treasury money received by an association
8.12from a person has been designated as the source of a disbursement for electioneering
8.13communications, that portion of the association's general treasury money received
8.14from that person may not be designated as the source of any other disbursement for
8.15electioneering communications or as the source for any contribution to an independent
8.16expenditure political committee or fund.
8.17    Subd. 5. Disclosure date. For purposes of this section, the term "disclosure date"
8.18means the earlier of:
8.19(1) the first date on which an electioneering communication is publicly distributed,
8.20provided that the person making the electioneering communication has made
8.21disbursements for the direct costs of producing or distributing one or more electioneering
8.22communication aggregating in excess of $1,500; or
8.23(2) any other date during the same calendar year on which an electioneering
8.24communication is publicly distributed, provided that the person making the electioneering
8.25communication has made disbursements for the direct costs of distributing one or more
8.26electioneering communication aggregating in excess of $1,500 since the most recent
8.27disclosure date.
8.28    Subd. 6. Contracts to disburse. For purposes of this section, a person shall be
8.29treated as having made a disbursement if the person has entered into an obligation to
8.30make the disbursement.
8.31    Subd. 7. Statement of attribution. (a) An electioneering communication must
8.32include a statement of attribution.
8.33(1) For communications distributed by printed material, signs, and billboards, the
8.34statement must say, in conspicuous letters: "Paid for by [association name] [address]."
8.35(2) For communications distributed by television, radio, satellite, or cable
8.36broadcasting system, the statement must be included at the end of the communication and
9.1must orally state at a volume and speed that a person of ordinary hearing can comprehend:
9.2"The preceding communication was paid for by the [association name]."
9.3(3) For communications distributed by telephone, the statement must precede the
9.4communication and must orally state at a volume and speed that a person of ordinary
9.5hearing can comprehend: "The following communication is paid for by the [association
9.6name]."
9.7(b) If the communication is paid for by an association registered with the board, the
9.8statement of attribution must use the association's name as it is registered with the board.
9.9If the communication is paid for by an association not registered with the board, the
9.10statement of attribution must use the association's name as it is disclosed to the board on
9.11the association's disclosure statement associated with the communication.
9.12    Subd. 8. Failure to file; penalty. (a) If a person fails to file a statement required by
9.13this section by the date the statement is due, the board may impose a late filing fee of $50
9.14per day, not to exceed $1,000, commencing the day after the statement was due.
9.15(b) The board must send notice by certified mail to a person who fails to file a
9.16statement within ten business days after the statement was due that the person may be
9.17subject to a civil penalty for failure to file the statement. A person who fails to file the
9.18statement within seven days after the certified mail notice was sent by the board is subject
9.19to a civil penalty imposed by the board of up to $1,000.
9.20(c) An association that provides disclosure under section 10A.20 rather than under
9.21this section is subject to the late filing fee and civil penalty provisions of section 10A.20
9.22and is not subject to the penalties provided in this subdivision.
9.23(d) An association that makes electioneering communications under this section and
9.24willfully fails to provide the statement required by subdivision 4, paragraph (b), clause
9.25(6), within the time specified is subject to an additional civil penalty of up to four times
9.26the amount of the electioneering communications disbursements that should have been
9.27included on the statement.
9.28EFFECTIVE DATE.This section is effective the day following final enactment.

9.29    Sec. 15. Minnesota Statutes 2014, section 10A.244, is amended to read:
9.3010A.244 VOLUNTARY INACTIVE STATUS; POLITICAL FUNDS.
9.31    Subdivision 1. Election of voluntary inactive status. An association that has a
9.32political fund registered under this chapter may elect to have the fund placed on voluntary
9.33inactive status if the following conditions are met:
9.34(1) the association makes a written request for inactive status;
10.1(2) the association has filed all periodic reports required by this chapter and
10.2has received no contributions into its political fund and made no expenditures or
10.3disbursements, including disbursements for electioneering communications, through its
10.4political fund since the last date included on the association's most recent report; and
10.5(3) the association has satisfied all obligations to the state for late filing fees and civil
10.6penalties imposed by the board or the board has waived this requirement.
10.7    Subd. 2. Effect of voluntary inactive status. After an association has complied
10.8with the requirements of subdivision 1:
10.9(1) the board must notify the association that its political fund has been placed in
10.10voluntary inactive status and of the terms of this section;
10.11(2) the board must stop sending the association reports, forms, and notices of report
10.12due dates that are periodically sent to entities registered with the board;
10.13(3) the association is not required to file periodic disclosure reports for its political
10.14fund as otherwise required under this chapter;
10.15(4) the association may not accept contributions into its political fund and may
10.16not make expenditures, contributions, or disbursements, including disbursements for
10.17electioneering communications, through its political fund; and
10.18(5) if the association maintains a separate depository account for its political fund,
10.19it may continue to pay bank service charges and receive interest paid on that account
10.20while its political fund is in inactive status.
10.21    Subd. 3. Resumption of active status or termination. (a) An association that
10.22has placed its political fund in voluntary inactive status may resume active status upon
10.23written notice to the board.
10.24(b) A political fund placed in voluntary inactive status must resume active status
10.25within 14 days of the date that it has accepted contributions or made expenditures,
10.26contributions, or disbursements, including disbursements for electioneering
10.27communications, that aggregate more than $750 since the political fund was placed on
10.28inactive status. If, after meeting this threshold, the association does not notify the board
10.29that its fund has resumed active status, the board may place the association's political fund
10.30in active status and notify the association of the change in status.
10.31(c) An association that has placed its political fund in voluntary inactive status may
10.32terminate the registration of the fund without returning it to active status.
10.33    Subd. 4. Penalty for financial activity while in voluntary inactive status. If an
10.34association fails to notify the board of its political fund's resumption of active status under
10.35subdivision 3, the board may impose a civil penalty of $50 per day, not to exceed $1,000
10.36commencing on the 15th calendar day after the fund resumed active status.

11.1    Sec. 16. Minnesota Statutes 2014, section 10A.25, subdivision 3a, is amended to read:
11.2    Subd. 3a. Independent expenditures and electioneering communications. The
11.3principal campaign committee of a candidate must not make independent expenditures or
11.4disbursements for electioneering communications.
11.5EFFECTIVE DATE.This section is effective the day following final enactment."
11.6Page 32, after line 33, insert:

11.7    "Sec. 18. Minnesota Statutes 2014, section 10A.27, subdivision 15, is amended to read:
11.8    Subd. 15. Contributions or use of general treasury money. (a) An association
11.9may, if not prohibited by other law, contribute its general treasury money to an
11.10independent expenditure or ballot question political committee or fund, including its
11.11own independent expenditure or ballot question political committee or fund, without
11.12complying with subdivision 13.
11.13(b) Before the day when the recipient committee or fund's next report must be
11.14filed with the board under section 10A.20, subdivision 2 or 5, an association that
11.15has contributed more than $5,000 in aggregate to independent expenditure political
11.16committees or funds during the calendar year or has contributed more than $5,000 in
11.17aggregate to ballot question political committees or funds during the calendar year must
11.18provide in writing to the recipient's treasurer a statement that includes the name, address,
11.19and amount attributable to each person that paid the association dues or fees, or made
11.20donations to the association that, in total, aggregate more than $5,000 of the contribution
11.21from the association to the independent expenditure or ballot question political committee
11.22or fund. The statement must also include the total amount of the contribution attributable
11.23to persons not subject to itemization under this section. The statement must be certified as
11.24true by an officer of the donor association.
11.25(c) To determine the amount of membership dues or fees, or donations made by a
11.26person to an association and attributable to the association's contribution to the independent
11.27expenditure or ballot question political committee or fund, the donor association must:
11.28separately prorate the total independent expenditures and ballot question expenditures made
11.29during the calendar year over all general treasury money received during the calendar year.
11.30(1) apply a pro rata calculation to all unrestricted dues, fees, and contributions
11.31received by the donor association in the calendar year; or
11.32(2) as provided in paragraph (d), identify the specific individuals or associations
11.33whose dues, fees, or contributions are included in the contribution to the independent
11.34expenditure political committee or fund.
12.1(d) Dues, fees, or contributions from an individual or association must be identified
12.2in a contribution to an independent expenditure political committee or fund under
12.3paragraph (c), clause (2), if:
12.4(1) the individual or association has specifically authorized the donor association to
12.5use the individual's or association's dues, fees, or contributions for this purpose; or
12.6(2) the individual's or association's dues, fees, or contributions to the donor
12.7association are unrestricted and the donor association designates them as the source of the
12.8subject contribution to the independent expenditure political committee or fund.
12.9(d) If the amount contributed to independent expenditure and ballot question
12.10political committees or funds in a calendar year exceeds the amount of general treasury
12.11money received by the association during that year:
12.12(1) the contributions must be attributed first to all receipts of general treasury money
12.13received during the calendar year in which the contributions were made;
12.14(2) any amount of current-year contributions that exceeds the total of all receipts of
12.15general treasury money during the current calendar year must be prorated over all general
12.16treasury money received in the preceding calendar year; and
12.17(3) if the allocation made in clauses (1) and (2) is insufficient to cover the subject
12.18independent expenditures and ballot question expenditures, no further allocation is
12.19required.
12.20(e) After a portion of the general treasury money received by an association from a
12.21person has been designated as the source of a contribution to an independent expenditure
12.22or ballot question political committee or fund, that portion of the association's general
12.23treasury money received from that person may not be designated as the source of any
12.24other contribution to an independent expenditure or ballot question political committee
12.25or fund, or as the source of funds for a disbursement for electioneering communications
12.26made by that association.
12.27EFFECTIVE DATE.This section is effective the day following final enactment."
12.28Renumber the sections in sequence and correct the internal references
12.29Amend the title accordingly