H.F. 129 Section 1. Section 68A.603, Code 2011, is amended to read 1 as follows: 2 68A.603 Rules promulgated. 3 The ethics and campaign disclosure board shall administer 4 the provisions of sections 68A.601 through 68A.609 , 68A.602, 5 and 68A.604 through 68A.610 and shall promulgate all necessary 6 rules in accordance with chapter 17A . 7 Sec. 2. NEW SECTION . 68A.610 Checkoff —— income tax —— 8 voter-owned Iowa clean elections. 9 A person whose state income tax liability for any taxable 10 year is five dollars or more may direct that five dollars 11 of that liability be paid over to the voter-owned Iowa 12 clean elections fund, as established in section 68A.823, 13 when submitting the person’s state income tax return to the 14 department of revenue. In the case of a joint return of 15 husband and wife having a state income tax liability of ten 16 dollars or more, each spouse may direct that five dollars 17 be paid to the fund. The director of revenue shall provide 18 space for the voter-owned Iowa clean elections fund income 19 tax checkoff on the income tax form. An explanation shall 20 be included which clearly states that this checkoff does not 21 constitute an additional tax liability. The action taken by a 22 person for the checkoff is irrevocable. 23 Sec. 3. NEW SECTION . 68A.801 Definitions. 24 For the purposes of this subchapter: 25 1. “Allowable contribution” means a qualifying contribution 26 or a seed money contribution. 27 2. “Board” means the Iowa ethics and campaign disclosure 28 board established under section 68B.32. 29 3. “Clean election campaign qualifying period” means the 30 period during which candidates are permitted to collect 31 qualifying contributions in order to qualify for clean election 32 campaign funding. The period begins ninety days before the 33 beginning of the primary election campaign period and ends 34 thirty days before the beginning of the primary election 35 -1- LSB 1746HH (6) 84 jr/sc 1/ 29

H.F. 129 campaign period. 1 4. “Coordination” means a payment made for a communication 2 or anything of value that is for the purpose of influencing the 3 outcome of an election and that is made by a person according 4 to at least one of the following: 5 a. In cooperation, consultation, or concert with, at 6 the request or suggestion of, or pursuant to, a particular 7 understanding with a candidate, a candidate’s committee, or an 8 agent acting on behalf of a candidate or candidate’s committee. 9 b. For the dissemination, distribution, or republication, 10 in whole or in part, of any broadcast or any written, graphic, 11 or other form of campaign material prepared by a candidate, 12 a candidate’s committee, or an agent of a candidate or 13 candidate’s committee. 14 c. Based on specific information about the candidate’s 15 plans, projects, or needs provided to the person making the 16 payment by the candidate or the candidate’s agent who provides 17 the information with a view toward having the payment made. 18 d. If, in the same election cycle in which the payment is 19 made, the person making the payment is serving or has served as 20 a member, employee, fund-raiser, or agent of the candidate or 21 candidate’s committee in an executive or policymaking position. 22 e. If the person making the payment has served in any formal 23 policy or advisory position with the candidate’s campaign or 24 has participated in strategic or policymaking discussions with 25 the candidate’s campaign relating to the candidate’s pursuit of 26 nomination for election, or election, to office, in the same 27 election cycle as the election cycle in which the payment is 28 made. 29 f. If the person making the payment retains the professional 30 services of an individual or person who, in a nonministerial 31 capacity, has provided or is providing campaign-related 32 services in the same election cycle to a candidate who 33 is pursuing the same nomination or election as any of the 34 candidates to whom the communication refers. For purposes 35 -2- LSB 1746HH (6) 84 jr/sc 2/ 29

H.F. 129 of this section, “professional services” includes services in 1 support of a candidate’s pursuit of nomination for election or 2 election to office such as polling, media advice, direct mail, 3 fund-raising, or campaign research services. 4 5. “Electioneering communication” means any communication 5 that refers to a clearly identified candidate for elected 6 public office, if the communication has the effect of 7 encouraging or discouraging a vote for the candidate, 8 regardless of whether the communication expressly advocates a 9 vote for or against the candidate. 10 6. “Excess expenditure amount” means the amount of 11 money spent or obligated to be spent by a nonparticipating 12 candidate in excess of the clean money amount available to a 13 participating candidate running for the same office. 14 7. “Express advocacy” means the same as defined in section 15 68A.102. 16 8. “General election campaign period” means the period 17 beginning the day after the primary election and ending on the 18 day of the general election. 19 9. “Independent candidate” means a candidate who does not 20 represent a political party as defined by section 43.2. 21 10. “Independent expenditure” means an expenditure made 22 by a person or group of persons other than a candidate or 23 candidate’s committee that meets both of the following 24 conditions: 25 a. The expenditure is made for a communication that contains 26 express advocacy. 27 b. The expenditure is made without the participation or 28 cooperation of and without coordination with a candidate or a 29 candidate’s committee. 30 11. “Nonparticipating candidate” means a candidate who is 31 on the ballot but has chosen not to apply for clean election 32 campaign funding or a candidate who is on the ballot and 33 has applied for but has not satisfied the requirements for 34 receiving clean election campaign funding. 35 -3- LSB 1746HH (6) 84 jr/sc 3/ 29

H.F. 129 12. “Participating candidate” means a candidate who 1 qualifies for clean election campaign funding. Such candidates 2 are eligible to receive clean election campaign funding during 3 primary or general election campaign periods. 4 13. “Party candidate” means a candidate who represents a 5 political party as defined by section 43.2. 6 14. “Primary election campaign period” means the period 7 beginning ninety days before the primary election and ending on 8 the day of the primary election. 9 15. “Qualifying contribution” means a contribution of five 10 dollars that is received during the designated clean election 11 campaign qualifying period by a candidate seeking to become 12 eligible for clean election campaign funding and that is 13 acknowledged by a written receipt identifying the contributor. 14 However, if the annual median household income of a legislative 15 district is at or below one hundred percent of the most recent 16 federal poverty guideline based on United States census bureau 17 data, the qualifying contribution is one dollar. 18 16. “Seed money contribution” means a contribution of no 19 more than one hundred dollars made by an individual adult 20 during the seed money period, but specifically excludes all of 21 the following: 22 a. Payments by a membership organization for the costs of 23 communications to its members. 24 b. Payments by a membership organization for the purpose of 25 facilitating the making of qualifying contributions. 26 c. The cash value of volunteer activity, including the 27 payment of incidental expenses of volunteers. 28 17. “Seed money period” means the period beginning the 29 day following the previous general election for that office 30 and ending on the last day of the clean election campaign 31 qualifying period. The “seed money period” is the exploratory 32 period during which candidates who wish to become eligible 33 for clean election campaign funding for the next elections 34 are permitted to raise and spend a limited amount of private 35 -4- LSB 1746HH (6) 84 jr/sc 4/ 29

H.F. 129 seed money, from contributions of up to one hundred dollars 1 per individual, for the purpose of determining whether to 2 become a candidate and fulfilling the clean election campaign 3 eligibility requirements. 4 Sec. 4. NEW SECTION . 68A.802 Eligibility for party 5 candidates. 6 1. A party candidate qualifies as a participating candidate 7 for the primary election campaign period if the candidate does 8 both of the following: 9 a. The candidate files a declaration with the board that 10 the candidate has complied and will comply with all of the 11 requirements of this subchapter, including the requirement 12 that during the seed money period and the clean election 13 campaign qualifying period the candidate not accept or 14 spend private contributions from any source other than seed 15 money contributions and clean election campaign qualifying 16 contributions, unless the provisions of section 68A.804 apply. 17 b. The candidate meets both of the following qualifying 18 contribution requirements before the close of the clean 19 election campaign qualifying period: 20 (1) A party candidate must collect both qualifying 21 contributions and signatures as follows: 22 (a) For the office of governor, from five hundred eligible 23 electors in each congressional district. 24 (b) For statewide office other than governor, from two 25 hundred fifty eligible electors in each congressional district. 26 (c) For the Iowa senate, from two hundred eligible electors 27 in the senate candidate’s electoral district. 28 (d) For the Iowa house of representatives, from one hundred 29 eligible electors in the house candidate’s electoral district. 30 (2) Each qualifying contribution must meet all requirements 31 of this section. 32 2. Contributors shall be eligible electors who reside 33 within the candidate’s electoral district and who are therefore 34 eligible to vote for that candidate. 35 -5- LSB 1746HH (6) 84 jr/sc 5/ 29

H.F. 129 3. Qualifying contributions shall be: 1 a. Made in cash, check, money order, or credit or debit 2 card. 3 b. Gathered by the candidate personally or by volunteers who 4 do not receive compensation. 5 c. Acknowledged by a receipt to the contributor, with 6 a copy to be kept by the candidate and a third copy to be 7 submitted to the board. The receipt shall include a signed 8 statement that the contributor understands that the purpose of 9 the contribution is to help the candidate qualify for clean 10 election campaign funding and that the contribution is made 11 without coercion or reimbursement. The receipt shall include 12 the contributor’s signature, printed name, home address, and 13 telephone number, and the name of the candidate on whose behalf 14 the contribution is made. 15 d. Paid over to the board for deposit in the voter-owned 16 Iowa clean elections fund established under section 68A.823, 17 with the signed and completed receipt, according to a schedule 18 and procedure to be determined by the board. A contribution 19 submitted as a qualifying contribution that does not include 20 the signed and completed receipt shall not be counted as a 21 qualifying contribution. 22 4. A party candidate qualifies as a participating candidate 23 for the general election campaign period when the candidate 24 does both of the following: 25 a. The candidate has met all of the applicable requirements 26 of this subchapter and filed a declaration with the board 27 that the candidate has fulfilled and will fulfill all of the 28 requirements of a participating candidate as stated in this 29 subchapter. 30 b. As a participating candidate during the primary election 31 campaign period, the candidate had the highest number of votes 32 of the candidates contesting the primary election from the 33 candidate’s respective party and won the party’s nomination. 34 Sec. 5. NEW SECTION . 68A.803 Eligibility for independent 35 -6- LSB 1746HH (6) 84 jr/sc 6/ 29

H.F. 129 candidates. 1 1. An independent candidate qualifies as a participating 2 candidate for the primary election campaign period if the 3 candidate does both of the following: 4 a. The candidate files a declaration with the board that 5 the candidate has complied and will comply with all of the 6 requirements of this subchapter, including the requirement 7 that during the seed money period and the clean election 8 campaign qualifying period the candidate not accept or 9 spend private contributions from any source other than seed 10 money contributions and clean election campaign qualifying 11 contributions, unless the provisions of section 68A.804 apply. 12 b. The candidate meets the following qualifying contribution 13 requirements before the close of the clean election campaign 14 qualifying period: 15 (1) An independent candidate shall collect the same number 16 of qualifying contributions as required of a party candidate 17 for the same office under section 68A.802. 18 (2) Each qualifying contribution must meet all requirements 19 of this section. 20 2. Contributors shall be registered voters who reside 21 within the candidate’s electoral district and who are therefore 22 eligible to vote for that candidate. 23 3. Qualifying contributions shall be: 24 a. Made in cash, check, money order, or credit or debit 25 card. 26 b. Gathered by the candidate personally or by volunteers who 27 do not receive compensation. 28 c. Acknowledged by a receipt to the contributor, with 29 a copy to be kept by the candidate and a third copy to be 30 submitted to the board. The receipt shall include a signed 31 statement that the contributor understands that the purpose of 32 the contribution is to help the candidate qualify for clean 33 election campaign funding and that the contribution is made 34 without coercion or reimbursement. The receipt shall include 35 -7- LSB 1746HH (6) 84 jr/sc 7/ 29

H.F. 129 the contributor’s signature, printed name, home address, and 1 telephone number, and the name of the candidate on whose behalf 2 the contribution is made. 3 d. Paid over to the board for deposit in the voter-owned 4 Iowa clean elections fund established under section 68A.823, 5 with the signed and completed receipt, according to a schedule 6 and procedure to be determined by the board. A contribution 7 submitted as a qualifying contribution that does not include 8 the signed and completed receipt shall not be counted as a 9 qualifying contribution. 10 4. An independent candidate qualifies as a participating 11 candidate for the general election campaign period when the 12 candidate does both of the following: 13 a. If, prior to the primary election, the candidate has met 14 all of the applicable requirements of this subchapter and filed 15 a declaration with the board that the candidate has fulfilled 16 and will fulfill all of the requirements of a participating 17 candidate as stated in this subchapter. 18 b. If, during the primary election campaign period, the 19 candidate has fulfilled all the requirements of a participating 20 candidate as stated in this subchapter. 21 Sec. 6. NEW SECTION . 68A.804 Transition rule for current 22 election cycle. 23 During the election cycle in effect on the date of enactment 24 of this Act, a candidate may be certified as a participating 25 candidate, notwithstanding the acceptance of contributions 26 or making of expenditures from private funds before the date 27 of enactment of this Act that would, absent this section, 28 disqualify the candidate as a participating candidate, provided 29 that any private funds accepted but not expended before the 30 date of enactment of this Act shall either be returned to 31 the contributor or submitted to the board for deposit in the 32 voter-owned Iowa clean elections fund established under section 33 68A.823. 34 Sec. 7. NEW SECTION . 68A.805 Continuing obligation to 35 -8- LSB 1746HH (6) 84 jr/sc 8/ 29

H.F. 129 comply. 1 A participating candidate who accepts any benefits under 2 section 68A.813 during the primary election campaign period 3 shall comply with all the requirements of this subchapter 4 through any remaining time during the primary election campaign 5 period as well as through the general election campaign period 6 whether or not the candidate continues to accept benefits. 7 Sec. 8. NEW SECTION . 68A.806 Contributions and 8 expenditures. 9 1. During the primary and general election campaign 10 periods, a participating candidate who has voluntarily agreed 11 to participate in clean election campaign financing shall not 12 accept private contributions from any source other than the 13 candidate’s political party as specified in section 68A.808. 14 2. A person shall not make a contribution in violation 15 of section 68A.502. A participating candidate who receives 16 a qualifying contribution or a seed money contribution that 17 is not from the person listed on the receipt as required by 18 this subchapter shall pay to the board for deposit in the 19 voter-owned Iowa clean elections fund established under section 20 68A.823 the entire amount of such contribution. 21 3. The board shall issue each participating candidate a 22 card known as the “clean election campaign debit card”, and a 23 line of debit entitling the candidate to draw clean election 24 campaign funds to pay for all campaign costs and expenses 25 up to the amount of funding the candidate has received. A 26 participating candidate shall not pay campaign costs by cash, 27 check, money order, loan, or by any other financial means 28 other than the clean election campaign debit card. During the 29 primary and general election campaign periods, a participating 30 candidate shall pay by means of the board’s clean election 31 campaign debit card. 32 4. Eligible candidates shall furnish complete campaign 33 records, including all records of seed money contributions and 34 qualifying contributions, to the board at regular filing times, 35 -9- LSB 1746HH (6) 84 jr/sc 9/ 29

H.F. 129 or on request by the board. Candidates shall cooperate with 1 any audit or examination conducted or ordered by the board. 2 Sec. 9. NEW SECTION . 68A.807 Nonparticipating candidates 3 —— contribution limits. 4 Nonparticipating candidates shall be subject to the 5 following contribution limits: 6 1. Candidates for statewide office: 7 a. One thousand dollars in the aggregate per individual 8 contribution. 9 b. Five thousand dollars in the aggregate per political 10 committee contribution. 11 2. Candidates for the Iowa senate and house of 12 representatives: 13 a. Five hundred dollars in the aggregate per individual 14 contribution. 15 b. One thousand dollars in the aggregate per political 16 committee contribution. 17 Sec. 10. NEW SECTION . 68A.808 Political party contributions 18 and expenditures. 19 1. Participating candidates may accept monetary or in-kind 20 contributions from political parties provided that the 21 aggregate amount of such contributions from all political party 22 committees combined does not exceed the equivalent of five 23 percent of the clean election campaign financing amount for 24 that office. 25 2. In-kind contributions made during a general election 26 campaign period on behalf of a group of the party’s candidates 27 shall not be considered a prohibited party contribution or 28 count against the five percent limit established in subsection 29 1 if such group includes at least fifty-one percent of the 30 candidates whose names will appear on the general election 31 ballot in the political subdivision represented by the party 32 committee making such in-kind contributions. 33 3. Contributions made to, and expenditures made by, 34 political parties during primary and general campaign 35 -10- LSB 1746HH (6) 84 jr/sc 10/ 29

H.F. 129 periods shall be reported to the board on the same basis as 1 contributions and expenditures made to or by candidates. 2 4. This section and this subchapter shall not prevent 3 political party funds from being used for any of the following: 4 a. General operating expenses of the party. 5 b. Conventions. 6 c. Nominating and endorsing candidates. 7 d. Identifying, researching, and developing the party’s 8 positions on issues. 9 e. Party platform activities. 10 f. Noncandidate-specific voter registration. 11 g. Noncandidate-specific get-out-the-vote drives. 12 h. Travel expenses for noncandidate party leaders and staff. 13 i. Other noncandidate-specific party-building activities, 14 as defined by rule of the board. 15 j. Employing a staff person to provide election services to 16 two or more candidates. 17 Sec. 11. NEW SECTION . 68A.809 Use of personal funds. 18 1. Personal funds contributed as seed money by a candidate 19 seeking to become eligible as a participating candidate or by 20 the candidate’s spouse shall not exceed one hundred dollars per 21 contributor. 22 2. Personal funds shall not be used to meet the qualifying 23 contribution requirement except for one five-dollar 24 contribution from the candidate and one five-dollar 25 contribution from the candidate’s spouse. 26 Sec. 12. NEW SECTION . 68A.810 Seed money. 27 1. The only private contributions a candidate seeking 28 to become eligible for clean election campaign funding shall 29 accept, other than qualifying contributions, are seed money 30 contributions contributed by individual adults prior to the end 31 of the clean election campaign qualifying period. 32 2. A seed money contribution shall not exceed one hundred 33 dollars, and the aggregate amount of seed money contributions 34 accepted by a candidate seeking to become eligible for clean 35 -11- LSB 1746HH (6) 84 jr/sc 11/ 29

H.F. 129 election campaign funding shall not exceed the relevant limit, 1 as follows: 2 a. Twenty-five thousand dollars for a candidate team running 3 for governor and lieutenant governor. 4 b. Fifteen thousand dollars for a candidate running for 5 statewide office other than governor or lieutenant governor. 6 c. Two thousand dollars for a candidate running for the Iowa 7 senate. 8 d. One thousand dollars for a candidate running for the Iowa 9 house of representatives. 10 3. Receipts for seed money contributions shall include 11 the contributor’s signature, printed name, street address and 12 zip code, telephone number, occupation, and name of employer. 13 Contributions shall not be accepted if the required disclosure 14 information is not received. 15 4. Seed money shall be spent only during the clean election 16 campaign qualifying period. Seed money shall not be spent 17 during the primary or general election campaign periods. 18 5. Within forty-eight hours after the close of the clean 19 election campaign qualifying period, candidates seeking to 20 become eligible for clean election campaign funding shall do 21 both of the following: 22 a. Fully disclose all seed money contributions and 23 expenditures to the board. 24 b. Pay over to the board for deposit in the voter-owned 25 Iowa clean elections fund any seed money the candidate has 26 raised during the designated seed money period that exceeds the 27 aggregate seed money limit. 28 Sec. 13. NEW SECTION . 68A.811 Participation in debates. 29 1. Participating candidates in contested races shall 30 participate in all of the following: 31 a. For the offices of governor and lieutenant governor: 32 (1) One one-hour debate during a contested primary 33 election. 34 (2) Two one-hour debates during a contested general 35 -12- LSB 1746HH (6) 84 jr/sc 12/ 29

H.F. 129 election. 1 b. For all other offices: 2 (1) One one-hour debate during a contested primary 3 election. 4 (2) One one-hour debate during a contested general 5 election. 6 2. Nonparticipating candidates for the same office whose 7 names will appear on the ballot shall be invited to join the 8 debates. 9 Sec. 14. NEW SECTION . 68A.812 Certification. 10 1. No more than five days after a candidate applies for 11 clean election campaign funding benefits, the board shall 12 certify that the candidate is or is not eligible to receive 13 clean election campaign funds. 14 2. Eligibility can be revoked if the candidate violates 15 the requirements of this subchapter, in which case all clean 16 election campaign funds shall be repaid. 17 3. The candidate’s request for certification shall be 18 signed by the candidate and the treasurer of the candidate’s 19 committee, both under penalty of perjury. 20 4. The board’s determination is final except that it is 21 subject to examination and audit by an outside agency according 22 to rule and to prompt judicial review according to rule and 23 chapter 17A. 24 Sec. 15. NEW SECTION . 68A.813 Benefits provided to 25 candidates eligible to receive clean election campaign funding. 26 1. Candidates who qualify for clean election campaign 27 funding for primary and general elections shall receive all of 28 the following: 29 a. Clean election campaign funding from the board for each 30 election, the amount of which is specified in section 68A.815. 31 This funding may be used to finance any and all campaign 32 expenses during the particular campaign period for which it was 33 received. 34 b. Additional clean election campaign funding to match 35 -13- LSB 1746HH (6) 84 jr/sc 13/ 29

H.F. 129 any excess expenditure amount spent by a nonparticipating 1 candidate, as specified in section 68A.817. 2 c. Additional clean election campaign funding to match any 3 independent expenditure made in opposition to their candidacies 4 or on behalf of their opponents’ candidacies, as specified in 5 section 68A.819. 6 d. Additional clean election campaign funding to match 7 any electioneering communication expenditure, as specified in 8 section 68A.820. 9 2. The maximum aggregate amount of additional funding, 10 above the initial allocation as determined in section 11 68A.815 that a participating candidate shall receive to 12 match independent expenditures, the excess expenditures of 13 nonparticipating candidates, and electioneering communication 14 expenditures shall be two hundred percent of the full amount of 15 clean election campaign funding allocated to a participating 16 candidate for a particular primary or general election campaign 17 period. 18 Sec. 16. NEW SECTION . 68A.814 Schedule of clean election 19 campaign funding payments. 20 1. An eligible candidate shall receive clean election 21 campaign funding for the primary election campaign period 22 on the date on which the board certifies the candidate as a 23 participating candidate. This certification shall take place 24 no later than five days after the candidate has submitted the 25 required number of qualifying contributions and a declaration 26 stating that the candidate has complied with all other 27 requirements for eligibility as a participating candidate, but 28 no earlier than the beginning of the primary election campaign 29 period. 30 2. An eligible candidate shall receive clean election 31 campaign funding for the general election campaign period 32 within forty-eight hours after certification of the primary 33 election results. 34 Sec. 17. NEW SECTION . 68A.815 Determination of clean 35 -14- LSB 1746HH (6) 84 jr/sc 14/ 29

H.F. 129 election campaign funding amounts. 1 1. a. For party candidates, the amount of clean election 2 campaign funding for a contested primary election is as 3 follows: 4 (1) Seven hundred fifty thousand dollars for a candidate 5 team running for governor and lieutenant governor. 6 (2) Seventy-five thousand dollars for a candidate for 7 statewide office other than governor and lieutenant governor. 8 (3) Twenty-two thousand five hundred dollars for a 9 candidate running for the Iowa senate. 10 (4) Fifteen thousand dollars for a candidate running for the 11 Iowa house of representatives. 12 b. The clean election campaign funding amount for an 13 eligible party candidate in an uncontested primary election 14 is twenty-five percent of the amount provided in a contested 15 primary election. 16 c. In a contested general election, if an eligible party 17 candidate or all of the candidates of the candidate’s party 18 combined received at least twenty percent of the total number 19 of votes cast for all candidates seeking that office in 20 the most recent primary election or in the previous general 21 election, the candidate shall receive the full amount of clean 22 election campaign funding for the general election, as follows: 23 (1) Three million dollars for a candidate team running for 24 governor and lieutenant governor. 25 (2) Two hundred thousand dollars for a candidate for 26 statewide office other than governor and lieutenant governor. 27 (3) Forty thousand dollars for a candidate running for the 28 Iowa senate. 29 (4) Thirty thousand dollars for a candidate running for the 30 Iowa house of representatives. 31 d. The clean election campaign funding amount for an 32 eligible party candidate in an uncontested general election 33 is ten percent of the amount provided in a contested general 34 election for the same office. 35 -15- LSB 1746HH (6) 84 jr/sc 15/ 29

H.F. 129 2. a. For eligible independent candidates, the clean 1 election campaign funding amount for the primary election 2 campaign period is twenty-five percent of the amount of clean 3 election campaign funding received by a party candidate in a 4 contested primary election for the same office. 5 b. The clean election campaign funding amount for an 6 eligible independent candidate in the general election is the 7 same as the full amount received by a party candidate in the 8 general election for the same office. 9 c. After the first cycle of clean election campaign 10 financing elections, the board shall modify all clean election 11 campaign funding amounts based on the percentage increase in 12 the consumer price index, for all urban consumers, United 13 States city average, as published in the federal register 14 by the United States department of labor, bureau of labor 15 statistics, that reflects the percentage increase in the 16 consumer price index for the twelve-month period ending 17 December 31 of the previous year. 18 Sec. 18. NEW SECTION . 68A.816 Expenditures made with clean 19 election campaign funds. 20 1. The clean election campaign funding received by a 21 participating candidate shall be used only for the purpose of 22 defraying that candidate’s campaign-related expenses during 23 the particular election campaign period for which the clean 24 election campaign funding was received. 25 2. Payments shall not be used for the following: 26 a. Payments that are in violation of the law. 27 b. Payments that repay any personal, family, or business 28 loans, expenditures, or debts. 29 Sec. 19. NEW SECTION . 68A.817 Disclosure of excess spending 30 by nonparticipating candidates. 31 1. If a nonparticipating candidate’s total expenditures 32 exceed the amount of clean election campaign funding allocated 33 to the candidate’s clean election campaign opponent, the 34 candidate shall declare to the board within forty-eight hours 35 -16- LSB 1746HH (6) 84 jr/sc 16/ 29

H.F. 129 every excess expenditure amount that, in the aggregate, is more 1 than one thousand dollars. 2 2. During the last twenty days before the end of the 3 relevant campaign period, a nonparticipating candidate shall 4 declare to the board each excess expenditure amount over 5 five hundred dollars within twenty-four hours of when the 6 expenditure is made or obligated to be made. 7 3. The board may make its own determination as to whether 8 excess expenditures have been made by nonparticipating 9 candidates. 10 4. Upon receiving an excess expenditure declaration, the 11 board shall immediately release additional clean election 12 campaign funding to the opposing participating candidate 13 or candidates equal to the excess expenditure amount the 14 nonparticipating candidate has spent or intends to spend, 15 subject to the limit set forth in section 68A.813. 16 Sec. 20. NEW SECTION . 68A.818 Campaign advertisements. 17 All broadcast and print advertisements placed by candidates 18 or candidate’s committees shall include a clear written or 19 spoken statement indicating that the candidate has approved of 20 the contents of the advertisement. 21 Sec. 21. NEW SECTION . 68A.819 Disclosure of independent 22 expenditures —— additional clean election campaign funding. 23 1. Any person or group of persons who makes or obligates 24 to make an independent expenditure during a primary or general 25 election campaign period which, in the aggregate, exceeds one 26 thousand dollars, shall report each expenditure within forty- 27 eight hours to the board. 28 2. The report to the board shall include a statement, 29 under penalty of perjury, by the person or persons making the 30 independent expenditure identifying the candidate whom the 31 independent expenditure is intended to help elect or defeat 32 and affirming that the expenditure is totally independent and 33 involves no coordination with a candidate or a political party. 34 a. An individual or organization may file a complaint with 35 -17- LSB 1746HH (6) 84 jr/sc 17/ 29

H.F. 129 the board if the candidate or the organization believes that 1 the statement according to this subsection is false. 2 b. A hearing on a complaint under this subsection shall be 3 held within three business days of filing and a decision issued 4 within seven days of filing. 5 3. Any person or group of persons who makes or obligates 6 to make an independent expenditure during the last twenty days 7 before the end of the relevant campaign period which, in the 8 aggregate, exceeds five hundred dollars, shall report each 9 expenditure within twenty-four hours to the board. 10 4. Upon receiving a report that an independent expenditure 11 has been made or obligated to be made, the board shall 12 immediately release additional clean election campaign funding, 13 equal in amount to the cost of the independent expenditure, to 14 all participating candidates whom the independent expenditure 15 is intended to oppose or defeat, subject to the limit set forth 16 in section 68A.813. 17 Sec. 22. NEW SECTION . 68A.820 Electioneering communications 18 —— disclosure —— additional clean election campaign funding. 19 1. A person who makes or obligates to make a disbursement to 20 purchase an electioneering communication shall file a report 21 with the board not later than forty-eight hours after making or 22 obligating to make the disbursement, containing the following 23 information: 24 a. The amount of the disbursement. 25 b. The name and address of the person making the 26 disbursement. 27 c. The purpose of the electioneering communication. 28 2. Upon receiving a report that an electioneering 29 communication has been made or obligated to be made, and 30 upon determination that the electioneering communication can 31 reasonably be interpreted as having the effect of promoting 32 the defeat of a participating candidate or the election 33 of that candidate’s opponent, the board shall immediately 34 release to that candidate additional clean election campaign 35 -18- LSB 1746HH (6) 84 jr/sc 18/ 29

H.F. 129 funding, equal in amount to the cost of the electioneering 1 communication, subject to the limit set forth in section 2 68A.813. 3 Sec. 23. NEW SECTION . 68A.821 Voter information program. 4 1. The board shall establish and administer a nonpartisan 5 voter information program, including an advisory council 6 consisting of representatives of nonprofit organizations, 7 political parties, the media, and interested citizens. 8 2. The voter information program advisory council may 9 establish a voter information program for the purpose of 10 providing voters with election-related information and 11 fostering political dialogue and debate. 12 3. The voter information program advisory council 13 shall organize the publication and distribution of a voter 14 information guide that includes important information about the 15 following issues: 16 a. Candidates appearing on the ballot, including 17 biographical material submitted by the candidates. 18 b. Whether candidates are funding their campaigns with 19 public money or private money. 20 c. Policy statements by the candidates or their political 21 parties on issues designated by the council and other issues. 22 d. Candidates’ voting records. 23 Sec. 24. NEW SECTION . 68A.822 Debates. 24 1. A nonpartisan organization that is involved in 25 providing information to the public concerning elections, or a 26 nonpartisan organization that has been involved in education 27 and the advocacy of open, clean election and campaign laws for 28 at least five years, may host and sponsor voter-owned Iowa 29 clean election candidate debates in contested primary and 30 general elections. 31 2. All participating candidates shall participate in the 32 debates and all nonparticipating candidates for the same office 33 whose names will appear on the ballot shall be invited to join 34 the debates. 35 -19- LSB 1746HH (6) 84 jr/sc 19/ 29

H.F. 129 Sec. 25. NEW SECTION . 68A.823 Voter-owned Iowa clean 1 elections fund (VOICE) —— nature and purposes. 2 1. A voter-owned Iowa clean elections fund is established as 3 a separate fund within the office of the state treasurer, under 4 the control of the board, for the following purposes: 5 a. Providing public financing for the election campaigns of 6 certified participating candidates during primary election and 7 general election campaign periods. 8 b. Paying for the administrative and enforcement costs of 9 the board in relation to this subchapter. 10 2. The fund shall consist of moneys received pursuant to 11 section 68A.824. Notwithstanding section 8.33, unencumbered 12 or unobligated moneys and any interest earned on moneys in the 13 fund on June 30 of any fiscal year shall not revert to the 14 general fund of the state but shall remain in the fund and be 15 available for expenditure in subsequent years. 16 Sec. 26. NEW SECTION . 68A.824 Funding. 17 In addition to any moneys appropriated by the general 18 assembly to the voter-owned Iowa clean elections fund 19 established in section 68A.823, the following moneys shall be 20 deposited in the fund: 21 1. The qualifying contributions required of candidates 22 seeking to become certified as participating candidates 23 according to section 68A.802 or 68A.803 and candidates’ excess 24 qualifying contributions. 25 2. Moneys deposited in the fund pursuant to section 68A.610 26 or section 556.18. 27 3. The excess seed money contributions of candidates 28 seeking to become certified as participating candidates. 29 4. Moneys distributed to any participating candidate 30 who does not remain a candidate until the primary or general 31 election for which they were distributed. 32 5. Civil penalties levied by the board against candidates 33 for violations of this subchapter. 34 6. Voluntary donations made directly to the fund. 35 -20- LSB 1746HH (6) 84 jr/sc 20/ 29

H.F. 129 7. Contributions received pursuant to section 68A.610. 1 8. Any other sources of revenue designated by the general 2 assembly. 3 Sec. 27. NEW SECTION . 68A.825 Powers and procedures. 4 The board shall have the following powers and duties, in 5 addition to those granted in this chapter and chapter 68B, when 6 administering this subchapter: 7 1. After every primary and general election, the board 8 may conduct random audits and investigations to ensure 9 compliance with this subchapter. The subjects of such audits 10 and investigations shall be selected on the basis of impartial 11 criteria established by a vote of at least four members of the 12 board. 13 2. a. The board may investigate anonymous complaints. 14 b. The identity of a complainant may be kept confidential 15 if the complainant states in the complaint that revealing 16 the identity of the complainant could reasonably result in 17 disciplinary action or loss of employment. 18 3. The board may seek injunctions when all of the following 19 conditions are met: 20 a. There is a substantial likelihood that a violation of 21 this subchapter is occurring or is about to occur. 22 b. The failure to act expeditiously will result in 23 irreparable harm to a party affected by the violation or 24 potential violation. 25 c. Expeditious action will not cause undue harm or prejudice 26 to the interests of others. 27 d. The public interest would be best served by the issuance 28 of an injunction. 29 4. The board may levy civil penalties for violations of 30 this subchapter. Civil penalties shall be deposited in the 31 voter-owned Iowa clean elections fund. 32 5. The board shall refer criminal violations to the county 33 attorney or attorney general for prosecution. 34 6. The board may participate fully in any actions filed 35 -21- LSB 1746HH (6) 84 jr/sc 21/ 29

H.F. 129 under this section. 1 7. The board shall adopt rules pursuant to chapter 17A as 2 necessary to administer this subchapter. 3 Sec. 28. NEW SECTION . 68A.826 Civil actions. 4 1. A citizen who believes a candidate has violated this 5 subchapter may pursue a civil action in a court of relevant 6 jurisdiction, provided that both of the following are true: 7 a. The citizen has previously filed a complaint with the 8 board regarding the same alleged violation. 9 b. The board has failed to make a determination within 10 thirty days of the filing of the complaint. 11 2. A complainant who prevails in a civil action charging 12 a violation of this subchapter shall be entitled to receive 13 reasonable attorney fees and court costs from the defendant. 14 3. If a court in which a civil action has been filed under 15 subsection 1 finds that the complaint in that action was 16 made frivolously or without cause, the court may require the 17 complainant to pay the costs of the board, the court, and the 18 defendant parties. 19 Sec. 29. NEW SECTION . 68A.827 Board reports. 20 1. The board shall report to the general assembly after each 21 election cycle. 22 2. The report shall include a detailed summary of all 23 seed money contributions, qualifying contributions, and clean 24 election campaign funding benefits received, and expenditures 25 made, by all participating candidates. The report shall also 26 include a summary and evaluation of the board’s activities and 27 recommendations relating to the implementation, administration, 28 and enforcement of this subchapter. 29 Sec. 30. NEW SECTION . 68A.828 Repayments of excess 30 expenditures. 31 1. If a participating candidate spends or obligates to spend 32 more than the clean election campaign funding the candidate 33 receives, and if such is determined not to be an amount that 34 had or could have been expected to have a significant impact 35 -22- LSB 1746HH (6) 84 jr/sc 22/ 29

H.F. 129 on the outcome of the election, the candidate shall personally 1 repay to the voter-owned Iowa clean elections fund an amount 2 equal to the excess. 3 2. If a participating candidate spends or obligates to spend 4 more than the clean election campaign funding the candidate 5 receives, and if such is determined to be an amount that had or 6 could have been expected to have a significant impact on the 7 outcome of the election, the candidate shall personally repay 8 to the voter-owned Iowa clean elections fund an amount equal to 9 five times the value of the excess. 10 Sec. 31. NEW SECTION . 68A.829 Penalties. 11 1. A candidate shall not knowingly accept more benefits than 12 those to which the candidate is entitled, spend more than the 13 amount of clean election campaign funding received, or misuse 14 such clean election campaign funding benefits or clean election 15 campaign funding. 16 2. If a violation of subsection 1 was intentional and 17 involved an amount that had or could have been expected to 18 have a significant impact on the outcome of the election, the 19 candidate commits an aggravated misdemeanor. 20 3. If it is determined that the violation of subsection 21 1 was intentional and involved an amount that had or could 22 have been expected to have a significant impact on the 23 outcome of the election, and if, in the judgment of the 24 board, the violation is believed to have contributed to the 25 violator winning the election, the board may recommend to 26 the appropriate authority that proceedings be commenced to 27 remove the violator from office or to impeach the violator if 28 applicable. 29 4. A person shall not provide false information to the board 30 or conceal or withhold information from the board. A violation 31 of this subsection is an aggravated misdemeanor. 32 Sec. 32. NEW SECTION . 68A.830 Local provision. 33 Each city council, school board, and county board of 34 supervisors shall have the authority to adopt and fund a 35 -23- LSB 1746HH (6) 84 jr/sc 23/ 29

H.F. 129 voter-owned Iowa clean elections fund, consistent with this 1 section, for local government elections. 2 Sec. 33. Section 422.7, Code 2011, is amended by adding the 3 following new subsection: 4 NEW SUBSECTION . 54. Subtract, to the extent not otherwise 5 excluded, up to two hundred dollars of the amount contributed 6 to the voter-owned Iowa clean elections fund pursuant to 7 section 68A.824, subsection 6. 8 Sec. 34. Section 422.12E, subsection 1, Code 2011, is 9 amended to read as follows: 10 1. For tax years beginning on or after January 1, 2004, 11 there shall be allowed no more than four income tax return 12 checkoffs on each income tax return. When the same four income 13 tax return checkoffs have been provided on the income tax 14 return for two consecutive years, the two checkoffs for which 15 the least amount has been contributed, in the aggregate for the 16 first tax year and through March 15 of the second tax year, are 17 repealed. This section does not apply to the income tax return 18 checkoff checkoffs provided in section sections 68A.601 and 19 68A.610 . 20 Sec. 35. NEW SECTION . 422.12I Income tax checkoff for 21 voter-owned Iowa clean elections fund. 22 A person who files an individual or a joint income tax 23 return with the department of revenue under section 422.13 24 may designate a contribution to the voter-owned Iowa clean 25 elections fund authorized pursuant to section 68A.610. 26 Sec. 36. Section 556.18, subsection 2, Code 2011, is amended 27 by adding the following new paragraph: 28 NEW PARAGRAPH . e. Ten million dollars to be deposited 29 in the voter-owned Iowa clean elections fund established in 30 section 68A.823. 31 Sec. 37. Section 556.18, subsection 3, Code 2011, is amended 32 to read as follows: 33 3. The treasurer of state shall annually credit all moneys 34 received under section 556.4 to the general fund of the state. 35 -24- LSB 1746HH (6) 84 jr/sc 24/ 29

H.F. 129 Moneys credited to the general fund of the state pursuant to 1 this subsection are subject to the requirements of subsections 2 1 and 2 and section 8.60 . However, if the amount collected 3 under subsection 2, paragraph “e” , does not equal ten million 4 dollars, the treasurer of state shall annually pay over an 5 amount received under section 556.4 as necessary to bring the 6 amount deposited with the voter-owned Iowa clean elections fund 7 to ten million dollars. 8 Sec. 38. SEVERABILITY. The provisions of this Act are 9 severable as provided in section 4.12. 10 Sec. 39. EFFECTIVE DATES. 11 1. The sections of this Act enacting sections 68A.610 and 12 422.12I and amending sections 422.7 and 556.18 are effective 13 January 1, 2012. 14 2. The remaining sections of this Act take effect November 15 14, 2014. 16 Sec. 40. IMPLEMENTATION OF ACT. Section 25B.2, subsection 17 3, shall not apply to this Act. 18 EXPLANATION 19 This bill amends Code chapter 68A, relating to campaign 20 finance law, in two distinct ways: the bill creates a 21 voluntary mechanism for publicly financed elections and 22 establishes contribution limits for candidates who do not 23 participate in the public financing process. 24 The bill enacts a process for public financing for statewide 25 and legislative elections, and enacts new Code section 68A.801, 26 providing definitions for key terms related to this process. 27 New Code section 68A.823 establishes a separate, 28 nonreverting fund in the state treasury to be known as the 29 voter-owned Iowa clean elections fund (VOICE), and new Code 30 section 68A.824 provides sources of revenue for the fund. 31 New Code sections 68A.802 and 68A.803 specify eligibility 32 procedures for both party and independent candidates, 33 specifying the number and details for collection of qualifying 34 contributions. 35 -25- LSB 1746HH (6) 84 jr/sc 25/ 29

H.F. 129 New Code section 68A.806 prohibits a participating candidate 1 from accepting private funding during the primary and general 2 election campaign periods other than certain permitted party 3 funding. Contributions in the name of another person are 4 prohibited and subject to payment to the board as are any 5 applicable penalties. The use of personal funds for seed money 6 or as qualifying contributions is limited by new Code section 7 68A.809. Contributions to nonparticipating candidates are 8 limited in new Code section 68A.807. 9 New Code section 68A.807 establishes contribution limits for 10 those candidates who do not choose to participate in the public 11 financing process. 12 New Code section 68A.808 limits political party 13 contributions and expenditures on behalf of candidates. 14 New Code section 68A.810 details the collection of private 15 contributions for use as seed money, limited to $100 per 16 individual contributor, and also limited in the aggregate in 17 differing amounts for candidates for governor and lieutenant 18 governor, for other statewide candidates, for Iowa senate 19 candidates, and for Iowa house of representatives candidates. 20 Seed money expenditures are limited to the clean election 21 campaign qualifying period and seed money contributions and 22 expenditures must be fully disclosed at the end of the public 23 financing qualifying period. 24 New Code section 68A.812 provides for a certification 25 process after a candidate applies for public financing campaign 26 funding benefits and requires repayment of funds if eligibility 27 is revoked. The bill provides for audit and judicial review 28 of the certification decision. 29 New Code section 68A.813 provides certain benefits for 30 participating candidates, including specified amounts of 31 public funding pursuant to new Code section 68A.815, mandatory 32 participation in debates pursuant to new Code sections 68A.811 33 and 68A.822, and additional limited public funding to respond 34 to certain excess expenditures by nonparticipating candidates, 35 -26- LSB 1746HH (6) 84 jr/sc 26/ 29

H.F. 129 independent expenditures, and electioneering communications 1 expenditures. Any candidate who accepts benefits during the 2 primary campaign must continue to comply with the requirements 3 of the public financing program, even if the candidate stops 4 accepting benefits of the program at any point during the 5 primary or general election according to new Code section 6 68A.805. 7 New Code section 68A.814 provides for a schedule of 8 payments to participating candidates, and new Code section 9 68A.815 specifies differing total amounts for primary and 10 general elections for candidates for governor and lieutenant 11 governor, for other statewide candidates, for Iowa senate 12 candidates, and for Iowa house of representatives candidates. 13 Alternate amounts are provided for uncontested races. Clean 14 election campaign funding payments must be used only for 15 campaign-related expenses, and cannot be used for payments 16 in violation of law or to repay personal or business loans, 17 expenditures, or debts, pursuant to new Code section 68A.816. 18 Nonparticipating candidates must disclose within 48 hours 19 every expenditure in excess of the public financing funding 20 allocated to the candidate’s participating opponent, that in 21 the aggregate is more than $1,000, pursuant to new Code section 22 68A.817. Certain other reporting requirements apply during the 23 last 20 days of a campaign. 24 All candidates must include a statement with all 25 advertisements indicating that the candidate has approved of 26 the contents of the advertisement pursuant to new Code section 27 68A.818. 28 Persons making certain independent expenditures must 29 report such expenditures to the board, along with an affidavit 30 affirming that the expenditure has not been coordinated with 31 the candidate or party, pursuant to new Code section 68A.819. 32 Alleged violations of the coordination affirmation are subject 33 to an expedited hearing procedure. 34 Persons making certain electioneering communications must 35 -27- LSB 1746HH (6) 84 jr/sc 27/ 29

H.F. 129 also report to the board pursuant to new Code section 68A.820. 1 New Code section 68A.821 provides that the board shall 2 administer a voter information program, including establishment 3 of an advisory council, to provide voters with election-related 4 information, including a voter guide with candidate 5 biographical material, policy statements, voting records, and 6 whether the candidate funds the campaign with public or private 7 money. 8 New Code section 68A.825 provides the board with certain 9 specific enforcement powers and duties in relation to the 10 new subchapter, and new Code section 68A.827 provides for an 11 election cycle report to the general assembly on the public 12 funding program. 13 New Code section 68A.826 creates a civil right of action for 14 citizens alleging that a candidate has violated the law. 15 Violations of the public funding program are subject 16 to aggravated misdemeanor penalties, pursuant to new Code 17 section 68A.829. An aggravated misdemeanor is punishable 18 by confinement for nor more than two years and a fine of at 19 least $625 but not more than $6,250. New Code section 68A.828 20 provides for repayment of certain excess expenditures by the 21 candidate. 22 New Code sections 68A.610 and 422.12I create an income tax 23 checkoff for the voter-owned Iowa clean elections fund. This 24 checkoff allows a person to direct that $5 of that person’s 25 state income tax liability be paid over to the Iowa voter-owned 26 clean elections fund. 27 Code section 422.7, new subsection 54, is amended to 28 provide up to a $200 exemption from income for purposes of the 29 individual income tax for contributions to the Iowa voter-owned 30 clean elections fund. 31 Code section 556.18 is amended to provide that $10 million 32 shall be annually transferred from the proceeds from the sale 33 of lost or unclaimed property to the voter-owner Iowa clean 34 elections fund. 35 -28- LSB 1746HH (6) 84 jr/sc 28/ 29

H.F. 129 The sections of the bill enacting the income tax checkoff 1 and the transfer in Code section 556.18 take effect January 2 1, 2012. The remainder of the bill takes effect November 14, 3 2014, which is the day after general election day, to allow the 4 new system to commence with a new campaign cycle. New Code 5 section 68A.804 provides guidelines for dealing with money 6 collected by candidates prior to the effective date of the 7 public financing program. 8 The bill may include a state mandate as defined in Code 9 section 25B.3. The bill makes inapplicable Code section 25B.2, 10 subsection 3, which would relieve a political subdivision from 11 complying with a state mandate if funding for the cost of 12 the state mandate is not provided or specified. Therefore, 13 political subdivisions are required to comply with any state 14 mandate included in the bill. 15 -29- LSB 1746HH (6) 84 jr/sc 29/ 29