Glossary of Terms:

Types of Committees

Principal Campaign Committee-This is the committee that a Candidate sets up as soon as she receives a contribution. All contributions to the campaign flow through this committee. A candidate is required to register a principle campaign committee with the Campaign Finance and Public Disclosure Board.

Political Party Committee-A committee of the party caucuses. There are 2 in the House and 3 in the Senate for a total of 5. House: House Republican Campaign Committee, DFL House Caucus; Senate: Senate Victory Fund (republican), Senate DFL Caucus, and Senate Independence Party Caucus.

Political Party Unit-includes party caucus in the legislature (political party committees), a state party, party units in legislative districts, congressional districts, counties, municipalities, and precincts.

Political Committee-(PACs) A political committee is an association or two or more persons whose major purpose is to support or oppose the nomination or election of a candidate.

Political Fund- An association whose major purpose is other tan influencing elections and who uses an accumulation of dues or voluntary contributions to support or oppose the nomination or election of a candidate.

Programs:

Campaign Finance Program: This program applies to candidates for state legislative office, constitutional office and judicial office. The system combines low contribution limits, disclosure, and voluntary spending limits.

Public Subsidy Program: In order to decrease reliance on large contributors, the state has set up this program where political parties and candidates for legislative and constitutional offices who agree to limit their campaign spending may qualify to receive direct subsidies from the state. The program also allows contributors to have their contributions refunded by the state up to $50 per year per contributor (see Political Contribution Refund Program). Most candidates in MN opt for public funding.

Political Contribution Refund Program: This program is available to candidates who have signed up for the Public Subsidy Program. A candidate gives a receipt to an individual who makes a contribution to the candidate’s principle campaign committee and then that individual may apply for a refund from the MN Dept of Revenue.

Limits set:

Spending Limits: Spending limits are the caps on what a candidate can spend. Spending limits are accepted by the candidate when she decides to sign up for the Public Subsidy program.

Contribution Limits: The limits on how much money or in-kind expenditures a candidate can receive. These apply to all candidates’ principal campaign committees. There is no limit, however, on how much a Political Party Committee can accept. Therefore, a lot of money tends to flow through the Political Party committees.

Types of Contributions:

Independent Expenditure: This is a contribution that does NOT count against contribution limits because it is technically “independent”. It is made on behalf of a candidate without the express or implied consent, authorization or suggestion of the candidate. Independent Expenditures must have a disclaimer that notes that someone else paid and organized the product (e.g., brochures, TV ads).

In-kind contribution: This is anything of value that is given, other than money or “negotiable instruments” (stamps, office equipment). These contributions DO count toward contribution limits.

Approved expenditures: This is an expenditure on the behalf of the candidate by someone other than the principle campaign committee. It is called “approved” because the candidate or treasurer must authorize the expenditure. This type DOES count against contribution limits.

Coordinated Expenditure: This is another name for approved expenditures that is used in the Elazar, Gray and Spano text.

Principal Campaign Committees

Each candidate must set up a principal campaign committee and register it with the Campaign Finance and Public Disclosure Board (we’ll call it the Board) once they have received any contributions. They can then receive contributions from individuals, political committees, political party units or other candidate’s principal campaign committees (if that candidate is terminating its registration). This last point means that candidates cannot give to each other’s campaigns unless one is deciding to end her campaign and eventually leave office (i.e. dissolve their own principal campaign committee). If candidates do want to support each other’s campaigns, they can only do it as citizens and then they must abide by the contribution limits for individuals. Anonymous contributions of over $20 may not be accepted. All contributions must be tracked and reported to the Board. (There are also guidelines as to when candidates can accept money. During the legislative session, they can accept money only from individuals who are not lobbyists, a state party or a party unit in a legislative district, congressional district, county, municipality or precinct. They may not accept contributions from lobbyists, political committees (PACs), political funds, terminating principal campaign committees or committees of a legislative party caucus.)

Candidates can receive $500 from individuals, political committees and political funds. They can receive $5,000 from political party units in aggregate (includes party caucus in the legislature, a state party, party units in legislative districts, congressional districts, counties municipalities, and precincts). In aggregate means that they can receive a total of $5,000 from all of these sources together. This limit is not usually an issue because rarely would one of these sources provide the entire $5,000, even though they could.

CONTRIBUTION LIMITS TO PRINCIPAL CAMPAIGN COMMITTEES (CANDIDATES):

What are the contribution limits from individuals, political committees and political funds?

Office Contribution limit-election year

Governor/Lt. Governor $2,000

Attorney General $1,000

Secretary of State, Auditor $500

Senate $500

House of Representatives $500

What are the contribution limits from political party units*, in aggregate?

Office Contribution limit-Election year

Governor/Lt. Governor $20,000

Attorney General $10,000

Secretary of State, State Auditor $5,000

Senate $5,000

House of Representatives $5,000

*Political party units include a party caucus in the legislature, a state party, and party units in legislative districts, congressional districts, counties, municipalities, and precincts.

If that candidate opts for public funding (Public Subsidy Agreement), as most candidates in MN do, they will voluntarily adopt spending limits. Once a candidate is registered with the Board, they can sign the agreement. It may not be rescinded after it is signed. In order to be eligible for public subsidy, the candidate must raise from individuals a required amount in $50 increments (see table below). The candidate may choose to be released from the expenditure limits but remain eligible to receive a public subsidy, but then the general election opponent is also released. By August 15th of each election year, the Board notifies every candidate of the amount of public subsidy available. So, a candidate who signs up receives a chunk of public funds that varies in size each year, and they also become eligible for the Political Contribution Refund Program. With the CRP, the MN Dept of Revenue reimburses individuals who contribute to a candidate’s campaign.

Candidates who sign the Public Subsidy Agreement must: abide by the spending limits, limit personal contributions as required, file an affidavit with the Board to be eligible to receive public subsidy funds, spend at least 50% of the public subsidy payment no later than Oct 21 and return the amount of public subsidy received that exceeds actually election year campaign expenditures.

What are the spending limits?

Office Spending Limit-Election year Contribution limit from candidate Amt that must be raised from individuals in $50 increments Agreement Expires

Governor/Lt. Governor $2,188,090 $20,000 $35,000 12/31

Attorney General $364,690 $10,000 $15,000 12/31

Sec. of State, State Auditor $182,350 $5,000 $6,000 12/31

Senate $54,740 $5,000 $3,000 12/31

House of Representatives $27,380 $5,000 $1,500 12/31

Political Party Committees (representing the caucuses)

Political Party Committees (remember there are 5 in the MN legislature) may accept contributions from individuals, principal campaign committees or other political committees (PACs), optical funds, and political party unites that are registered with the Board. They may not accept anonymous contributions over $20. Political Party Units also apply to the Political Contribution Refund Program and can give a contributor a receipt that they can use to get a refund once they have contributed to the political party committee.

Political Party Committees channel funds to specific candidates that may have contested seats. They usually pick a handful of candidates to support in an election year that are facing contest, but who have exhibited good plans and campaign tactics. In an election year, political party committees can contribute $5,000 to a House or Senate Candidate. (In a nonelection year, they can contribute $1,000). This is in in-kind, approved, or direct contributions. They may also give a candidate independent expenditures (such as a mailing with a disclaimer that it was prepared by the House Republican Campaign Committee) and these do not count toward the contribution limits.

How much may a political party unit contribute to a candidate committee?

Office Contribution LimitsElection year Contribution LimitsNonelection year

Governor/Lt. Governor $20,000 $5,000

Attorney General $10,000 $2,000

Secretary of State, State Auditor $5,000 $1,000

Senate $5,000 $1,000

House of Representatives $5,000 $1,000

Judicial No limit No limit

Political Committees and Political Funds:

A political committee or political fund must register with the Board after making contributions or receiving contributions. A corporation doing business in MN may not make a contribution, directly or indirectly, to promote or oppose the candidacy of an individual for nomination, election or appointment to a political office. A corporation may also not make independent expenditures. A treasurer of the political committee or fund is required to keep full and accurate accounts of all receipts and expenditures. A committee or fund may receive in kind contributions or make approved expenditures or independent expenditures. They may accept contributions from individuals, principal campaign committees or other political committees, political funds or political party units (all must be registered with the Board). A political committee or fund may not accept anonymous contributions over $20 and they may not, except for in a few circumstances , accept contributions of more than $100 from an association that is not registered with the Board.

A political committee or fun may not accept any contributions from a corporation, unless it is a nonprofit corporation that is not organized or operating for the principal purpose of conducting business. In this case, the assistance is limited to accounting, clerical, legal or office supplies.

There are no limits on the amounts that a political committee or fund can accept. They can contribute $500 to a legislative candidate in an election year and $100 in a nonelection year. (See table on pg. 2 of this primer.)