SENATE FILE 2084

BY  CHELGREN, ZAUN, SORENSON, FEENSTRA, BOETTGER, KETTERING, SEYMOUR, HAMERLINCK, ERNST, HAHN, and KAPUCIAN

A BILL FOR

An Act limiting certain campaign contributions by labor unions and providing for a penalty.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  Section 68A.503, subsections 1, 2, and 3, Code 2011, are amended to read as follows:
   1.  Except as provided in subsections 3, 4, 5, and 6, an insurance company, savings and loan association, bank, credit union,
 
labor union, or corporation shall not make a monetary or in-kind contribution to a candidate or committee except for a ballot issue committee.
   2.  Except as provided in subsection 3, a candidate or committee, except for a ballot issue committee, shall not receive a monetary or in-kind contribution from an insurance company, savings and loan association, bank, credit union,
 
labor union, or corporation.
   3.  An insurance company, savings and loan association, bank, credit union,
 
labor union, or corporation may use money, property, labor, or any other thing of value of the entity for the purposes of soliciting its stockholders, administrative officers, professional employees, and members for contributions to a political committee sponsored by that entity and for financing the administration of a political committee sponsored by that entity. The entity’s employees to whom the foregoing authority does not extend may voluntarily contribute to such a political committee but shall not be solicited for contributions. A candidate or committee may solicit, request, and receive money, property, labor, and any other thing of value from a political committee sponsored by an insurance company, savings and loan association, bank, credit union,
 
labor union, or corporation as permitted by this subsection.
    Sec. 2.  Section 68A.503, subsection 4, unnumbered paragraph 1, Code 2011, is amended to read as follows:
   The prohibitions in subsections 1 and 2 shall not apply to an insurance company, savings and loan association, bank, credit union,
 
labor union, or corporation engaged in any of the following activities:
EXPLANATION
   This bill provides that a labor union shall not make a monetary or in-kind contribution to a candidate or committee except for a ballot issue committee. The prohibition in the bill does not apply to independent expenditures.
   As provided in Code section 68A.701, a willful violation of any provision of the campaign finance Code chapter is a serious misdemeanor punishable by confinement for up to one year and a fine of at least $315 but not more than $1,875. A variety of civil remedies are also available in Code section 68B.32D for a violation of Code chapter 68A or rules of the ethics and campaign disclosure board, ranging from a reprimand to a civil penalty of not more than $2,000.