Update: scroll to the bottom of this post for the civil penalties that could potentially be charged if the apparent excessive contribution allegedly is over the limit.
In looking at campaign finance reports posted online today from Bob Frey and Jim Nash, both Republican candidates for the open Minnesota House seat created by the retirement of Ernie Leidiger in 47A, one things is immediately obvious.
As one former district resident (now on the Hoppe side of the senate district) tweeted:
Money race in #47A GOP primary is a blowout. Bob Frey raised $10.8K, $9K of which was a loan from the candidate. Jim Nash has raised $22.7K.
— Sean Olsen (@Sean_Olsen) July 29, 2014
But District 22 Republican state senator Dave Osmek points out another potential problem as well:
I do believe campaign finance law prohibits more than a $5000 candidate loan, so it appears Bob Frey is in violation of the law.
— David Osmek (@BigDfromMn) July 29, 2014
What does the Minnesota Campaign Finance and Public Disclosure Board rules say? On page 13-14 of the Legislative and Constitutional Office Candidate Handbook under How should you handle loans? we read:
. . .Because a loan could turn into a contribution at some point in the future, loans from anyone other than a financial institution are subject to the same contribution limits that would apply to a contribution from the lender. The amount of the loan must be added to the cash and in-kind contributions from the same lender when checking to see if the lender’s contribution limit has been reached. These contribution limits are discussed later in this section.
According to the 2013 - 2014 Contribution and Spending Limits posted on the Campaign Finance and Public Disclosure Board, a 2013-2014 Candidate’s Personal Contribution Limit Total Amount for Two-Year Period (applicable only to candidates who have signed a public subsidy agreement) for someone running for the Minnesota House of Representatives is $5000.
Bob Frey has signed such an agreement, according to the Principal Campaign Committee Registration Information for his campaign.
Hat tip to Senator Dave Osmek on this one. We'll update this post with information about what the fine--if any--might be for this violation of the rules.
UPDATE: According to page 21 of the handbook, the civil penalty for this activity are potentially fairly stiff:
If the committee takes a contribution that is more than the limit for that type of contribution, the Board can charge a civil penalty that is up to four times the amount by which the contribution exceeded the limits.
For this apparent violation, that is $4000 over the limit, the board could potentially charge the campaign up to $16,000 after an investigation. We're not clear if a complaint has to be made for the board to look into it. However, the board has a great deal of latitude, while tending to be fair while looking at the circumstances.
Screenshot: Bob Frey loaned his campaign $9000, in apparent violation of Minnesota's campaign finance rules.
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