H.F. 2271 Section 1. Section 68A.404, subsection 2, Code 2011, is 1 amended by striking the subsection. 2 Sec. 2. Section 68A.404, subsection 5, paragraph g, Code 3 2011, is amended by striking the paragraph. 4 Sec. 3. Section 68A.503, Code 2011, is amended by striking 5 the section and inserting in lieu thereof the following: 6 68A.503 Financial institution, insurance company, and 7 corporation restrictions. 8 1. Except as provided in subsections 3 and 4, it is unlawful 9 for an insurance company, savings and loan association, 10 bank, credit union, or corporation organized pursuant to the 11 laws of this state, the United States, or any other state, 12 territory, or foreign country, whether for profit or not, or 13 an officer, agent, or representative acting for such insurance 14 company, savings and loan association, bank, credit union, 15 or corporation, to contribute any money, property, labor, or 16 thing of value, directly or indirectly, to a committee, or 17 to expressly advocate that the vote of an elector be used 18 to nominate, elect, or defeat a candidate for public office, 19 except that such resources may be so expended in connection 20 with a utility franchise election held pursuant to section 21 364.2, subsection 4, or a ballot issue. All such expenditures 22 are subject to the disclosure requirements of this chapter. 23 2. a. Except as provided in subsection 3, it is unlawful 24 for a member, employee, or representative of a committee, 25 other than a ballot issue committee, or for a candidate or a 26 representative of a candidate for office to solicit, request, 27 or knowingly receive from an insurance company, savings and 28 loan association, bank, credit union, or corporation organized 29 pursuant to the laws of this state, the United States, or any 30 other state, territory, or foreign country, whether for profit 31 or not, or from an officer, agent, or representative, any 32 money, property, or thing of value belonging to the insurance 33 company, savings and loan association, bank, credit union, or 34 corporation for either of the following purposes: 35 -1- LSB 5703YH (6) 84 jr/sc 1/ 4

H.F. 2271 (1) Campaign expenses. 1 (2) To expressly advocate that the vote of an elector be 2 used to nominate, elect, or defeat a candidate for public 3 office. 4 b. This section does not restrain or abridge the freedom of 5 the press or prohibit the consideration and discussion in the 6 press of candidacies, nominations, public officers, or public 7 questions. 8 c. This section does not apply to a nonprofit organization 9 communicating with its own members. The board shall adopt 10 rules pursuant to chapter 17A to administer this paragraph. 11 d. The board shall adopt rules prohibiting the owner, 12 publisher, or editor of a sham newspaper from using the sham 13 newspaper to promote in any way the candidacy of such a person 14 for any public office. As used in this paragraph, “sham 15 newspaper” means a newspaper that does not meet the requirements 16 set forth in section 618.3 and “owner” means a person having 17 an ownership interest exceeding ten percent of the equity or 18 profits of the newspaper. 19 3. It is lawful for an insurance company, savings and loan 20 association, bank, credit union, and corporation organized 21 pursuant to the laws of this state, the United States, or any 22 other state or territory, whether or not for profit, and for 23 their officers, agents, and representatives, to use the money, 24 property, labor, or any other thing of value of the entity for 25 the purposes of soliciting its stockholders, administrative 26 officers, and members for contributions to a committee 27 sponsored by that entity and of financing the administration of 28 a committee sponsored by that entity. The entity’s employees 29 to whom the foregoing authority does not extend may voluntarily 30 contribute to such a committee but shall not be solicited for 31 contributions. All contributions made under this subsection 32 are subject to the disclosure requirements of this chapter. A 33 committee member, committee employee, committee representative, 34 candidate, or representative referred to in subsection 2 35 -2- LSB 5703YH (6) 84 jr/sc 2/ 4

H.F. 2271 lawfully may solicit, request, and receive money, property, 1 and other things of value from a committee sponsored by an 2 insurance company, savings and loan association, bank, credit 3 union, or corporation as permitted by this subsection. 4 4. The prohibitions in subsections 1 and 2 shall not apply 5 to an insurance company, savings and loan association, bank, 6 credit union, or corporation engaged in any of the following 7 activities: 8 a. Using its funds to encourage registration of voters and 9 participation in the political process or to publicize public 10 issues, provided that no part of those contributions is used 11 to expressly advocate the nomination, election, or defeat of 12 any candidate for public office. 13 b. Using its funds to expressly advocate the passage 14 or defeat of ballot issues so long as the transactions are 15 reported as required under section 68A.402. 16 c. The placement of campaign signs as permitted under 17 section 68A.406. 18 5. For purposes of this section, “committee” shall include 19 statutory political committees organized under chapter 43, and 20 nonparty political organizations organized under chapter 44. 21 6. Any person convicted of a violation of any of the 22 provisions of this section shall be guilty of a serious 23 misdemeanor. 24 EXPLANATION 25 This bill provides that an insurance company, savings 26 and loan association, bank, credit union, or a for-profit 27 or nonprofit corporation cannot contribute, directly or 28 indirectly, to a committee, or to expressly advocate for 29 the election or defeat of a candidate for public office. 30 Contributions relating to a utility franchise election are 31 allowed. 32 An insurance company, savings and loan association, bank, 33 credit union, or a for-profit or nonprofit corporation may 34 solicit stockholders, executives, or members for contributions 35 -3- LSB 5703YH (6) 84 jr/sc 3/ 4

H.F. 2271 to a political committee. 1 The bill also provides that an insurance company, savings 2 and loan association, bank, credit union, or a for-profit 3 or nonprofit corporation may use its funds to encourage 4 registration of voters and participation in the political 5 process or to publicize public issues as long as the funds are 6 not used to expressly advocate the nomination, election, or 7 defeat of any candidate for public office. Such an entity may 8 also use funds to expressly advocate for or against a ballot 9 issue and to place campaign signs on the entity’s property. 10 The bill provides that violation of these provisions is a 11 serious misdemeanor. A serious misdemeanor is punishable by a 12 fine of at least $315 but not to exceed $1,875. In addition, 13 the court may also order imprisonment not to exceed one year. 14 -4- LSB 5703YH (6) 84 jr/sc 4/ 4