HF 2371 (LSB 5216YH (5) 88)

HOUSE FILE 2371

BY  McKEAN, STAED, KURTZ, WILBURN, ANDERSON, JUDGE, HUNTER, KURTH, DONAHUE, JAMES, M. SMITH, DERRY, GASKILL, COHOON, WOLFE, B. MEYER, PRICHARD, OLDSON, STECKMAN, THEDE, NIELSEN, WILLIAMS, GAINES, BRECKENRIDGE, KONFRST, MATSON, BROWN-POWERS, SHIPLEY, McCONKEY, ISENHART, JACOBY, KRESSIG, KACENA, SUNDE, HALL, and BEARINGER

A BILL FOR

An Act relating to campaign finance, including expenditures, attribution statements, and reports, and making penalties applicable.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  Section 68A.102, subsection 10, paragraph a, subparagraph (2), Code 2020, is amended to read as follows:
   (2)  The payment, by any person other than a candidate or political committee who receives the service, of compensation for the personal services of another person which are rendered to a candidate or political committee for any such purpose.
    Sec. 2.  Section 68A.102, subsection 10, paragraph a, Code 2020, is amended by adding the following new subparagraph:
   NEW SUBPARAGRAPH.  (3)  A coordinated expenditure if the expenditure must be reported pursuant to subchapter IV.
    Sec. 3.  Section 68A.102, subsections 14 and 18, Code 2020, are amended to read as follows:
   14.  a.  “Express advocacy” or to “expressly advocate” means communication that can be characterized according to at least one of the following descriptions:
   a.  (1)  The communication is political speech made in the form of a contribution.
   b.  (2)  In advocating the election or defeat of one or more clearly identified candidates or the passage or defeat of one or more clearly identified ballot issues, the communication includes explicit words that unambiguously indicate that the communication is recommending or supporting a particular outcome in the election with regard to any clearly identified candidate or ballot issue.
   b.  “Express advocacy” or “expressly advocate” does not mean a communication that can be characterized according to one or more of the following descriptions:
   (1)  The communication encourages individuals to register to vote or to vote, provided that the communication does not mention or depict a candidate or ballot issue.
   (2)  The communication does not support or oppose a candidate or ballot issue.
   (3)  The communication is a bona fide news story, commentary, blog, or editorial distributed through the facilities of any broadcasting station, newspaper, magazine, internet site, or other periodical publication of general circulation.
   (4)  The communication is by a membership organization or corporation to its members, stockholders, or employees.
   (5)  The board determines by rule that the communication is not express advocacy.
   18.  “Political committee” means any of the following:
   a.  A committee, but not a candidate’s committee, that accepts contributions in excess of one thousand two hundred fifty dollars in the aggregate, makes expenditures in excess of one thousand two hundred fifty dollars in the aggregate, or incurs indebtedness in excess of one thousand two hundred fifty dollars in the aggregate in any one calendar year to expressly advocate the nomination, election, or defeat of a candidate for public office, make an electioneering communication, or to expressly advocate the passage or defeat of a ballot issue.
   b.  An association, lodge, society, cooperative, union, fraternity, sorority, educational institution, civic organization, labor organization, religious organization, or professional organization that accepts contributions in excess of one thousand two hundred fifty dollars in the aggregate, makes expenditures in excess of one thousand two hundred fifty dollars in the aggregate, or incurs indebtedness in excess of one thousand two hundred fifty dollars in the aggregate in any one calendar year to expressly advocate the nomination, election, or defeat of a candidate for public office, make an electioneering communication, or to expressly advocate the passage or defeat of a ballot issue.
   c.  A person, other than an individual, that accepts contributions in excess of one thousand two hundred fifty dollars in the aggregate, makes expenditures in excess of one thousand two hundred fifty  dollars in the aggregate, or incurs indebtedness in excess of one thousand two hundred fifty  dollars in the aggregate in any one calendar year to expressly advocate that an individual should or should not seek election to a public office prior to the individual becoming a candidate as defined in subsection 4. 
    Sec. 4.  Section 68A.102, Code 2020, is amended by adding the following new subsections:
   NEW SUBSECTION.  8A.  “Communication” means any of the following:
   a.  A paid advertisement broadcast over radio, television, cable, or satellite.
   b.  The paid placement of content on the internet or other electronic communication network.
   c.  A paid advertisement published in a newspaper or periodical or on a billboard.
   d.  A mailing.
   e.  A printed material.
   NEW SUBSECTION.  10A.  “Coordinated expenditure” means an expenditure made in cooperation with, in consultation with, at the request of, or with the express prior consent of a candidate or committee receiving the benefit of the expenditure.
   NEW SUBSECTION.  13A.  a.  “Electioneering communication” means a paid communication that is publicly distributed by radio, television, cable, satellite, internet site, newspaper, periodical, billboard, mail, electronic mail, or any other distribution of materials, that is made within sixty days of the initiation of voting in an election that does not support or oppose a candidate or ballot issue, that can be received by more than one hundred persons, and that does any of the following:
   (1)  Refers to one or more clearly identified candidates in that election.
   (2)  Depicts the name, image, likeness, or voice of a clearly identified candidate in that election.
   (3)  Refers to a political party, ballot issue, or a question submitted to the voters in that election.
   b.  “Electioneering communication” does not include any of the following:
   (1)  A bona fide news story, commentary, blog, or editorial distributed through the facilities of any broadcasting station, newspaper, magazine, internet site, or other periodical publication of general circulation.
   (2)  A communication by a membership organization or corporation to its members, stockholders, or employees.
   (3)  A commercial communication that depicts a candidate’s name, image, likeness, or voice only in the candidate’s capacity as owner, operator, or employee of a business that existed prior to the organization of a candidate’s committee by the candidate pursuant to section 68A.202.
   (4)  A communication that constitutes a candidate debate or forum or that solely promotes a candidate debate or forum and is made by or on behalf of the person sponsoring the debate or forum.
   (5)  A communication that the board determines by rule is not an electioneering communication.
    Sec. 5.  Section 68A.402, subsection 9, Code 2020, is amended to read as follows:
   9.  a.  Permanent organizations.  A permanent organization temporarily engaging in activity described in section 68A.102, subsection 18, shall organize a political committee and shall keep the funds relating to that political activity segregated from its operating funds. The political committee shall file reports on the appropriate due dates as required by this section.
   b.  The reports filed under this subsection shall identify the all of the following:
   (1)  The source of the original funds used for a contribution made to a candidate or a committee organized under this chapter.
   (2)  The aggregate amount of contributions made by each person.
   (3)  Each loan received from any person during the reporting period.
   (4)  The amount and nature of debts and obligations owed to the committee.
   (5)  Proceeds that total less than thirty-five dollars per person from mass collections made at fund-raising events sponsored by the committee.
   (6)  The total sum of contributions received by the committee for a specified candidate or committee.
   (7)  The full name, mailing address, occupation, and principal place of business, if any, of each person or committee to whom an expenditure has been made during the reporting period, including the amount, date, and purpose of each expenditure and the total amount of expenditures to each person or committee.
   (8)  The full name, mailing address, occupation, and principal place of business, if any, of each person to whom an expenditure for personal services, salaries, and reimbursement of expenses has been made, including the amount, date, and purpose of that expenditure, and the total amount of expenditures made to each person.
   (9)  The total sum of expenditures made during the reporting period.
   (10)  The full name, mailing address, occupation, and principal place of business, if any, of any person to whom a loan was made, and the full name, mailing address, occupation, and principal place of business, if any, of any endorsers, and the date and amount of each loan.
   (11)  The amount and nature of debts and obligations owed by the committee.
   (12)  Other information as may be required by the board by rule.
   (13)  For reports of expenditures made to a consultant, advertising agency, polling firm, or other person that performs services for the committee, the report shall be itemized and described in sufficient detail to disclose the specific services performed by the entity.
   c.  When the permanent organization ceases to be involved in the political activity, the permanent organization shall dissolve the political committee.
   d.  As used in this subsection, “permanent organization” means an organization that is continuing, stable, and enduring, and was originally organized for purposes other than engaging in election activities.
    Sec. 6.  Section 68A.402A, subsection 1, paragraphs f and g, Code 2020, are amended to read as follows:
   f.  The name and mailing address of each person and committee to whom disbursements, payments for personal services, salaries, reimbursement for expenses, or loan repayments have been made by the committee from contributions during the reporting period and the amount, purpose, and date of each disbursement except that disbursements of less than five dollars may be shown as miscellaneous disbursements so long as the aggregate miscellaneous disbursements to any one person during a calendar year do not exceed one hundred dollars.  Reports of disbursements under this paragraph must be itemized and sufficiently detailed to disclose the specific services performed by the person to whom a disbursement was made.
   g.  Disbursements made to a consultant, advertising agency, or polling firm and disbursements made by the consultant, advertising agency, or polling firm during the reporting period disclosing the name and address of the recipient, amount, purpose, and date.  Reports of disbursements under this paragraph must be itemized and sufficiently detailed to disclose the specific services performed by the entity to whom a disbursement was made.
    Sec. 7.  Section 68A.402A, subsection 1, Code 2020, is amended by adding the following new paragraph:
   NEW PARAGRAPH.  l.  The total sum of disbursements made.
    Sec. 8.  NEW SECTION.  68A.404A  Electioneering communications —— reports.
   1.  A person making an electioneering communication shall file a report with the board, including a description of the communication, how the communication was distributed, and the amount of any expenditure made on the electioneering communication, except that a person spending less than two hundred fifty dollars on electioneering communications in a taxable year shall not be required to file a report.
   2.  The board shall adopt rules for the form and schedule of reports filed under this section.
    Sec. 9.  Section 68A.405, subsection 1, paragraphs b, c, d, e, f, g, and h, Code 2020, are amended to read as follows:
   b.  (1)  Except as set out in subsection 2, published material designed to expressly advocate the nomination, election, or defeat of a candidate for public office or the passage or defeat of a ballot issue and electioneering communications shall include on the published material or electioneering communication an attribution statement disclosing who is responsible for the published material or electioneering communication.
   (2)  The person who is responsible for the published material or electioneering communication has the sole responsibility and liability for the attribution statement required by this section.
   c.  If the person paying for the published material or electioneering communication is an individual, the words “paid for by” and the name and address of the person shall appear on the published material or electioneering communication.
   d.  If more than one individual is responsible, the words “paid for by”, the names of the individuals, and either the addresses of the individuals or a statement that the addresses of the individuals are on file with the Iowa ethics and campaign disclosure board shall appear on the published material or electioneering communication.
   e.  If the person responsible is an organization, the words “paid for by”, the name and address of the organization, and the name of one officer of the organization shall appear on the published material or electioneering communication.
   f.  If the person responsible is a corporation, the words “paid for by”, the name and address of the corporation, and the name and title of the corporation’s chief executive officer shall appear on the published material or electioneering communication.
   g.  If the person responsible is a committee that has filed a statement of organization pursuant to section 68A.201, the words “paid for by” and the name of the committee shall appear on the published material or electioneering communication.
   h.  If the published material or electioneering communication is the result of an independent expenditure subject to section 68A.404, the published material or electioneering communication shall include a statement that the published material or electioneering communication was not authorized by any candidate, candidate’s committee, or ballot issue committee.
    Sec. 10.  Section 68A.405, subsection 2, paragraph d, Code 2020, is amended to read as follows:
   d.  Any published material or electioneering communication that is subject to federal regulations regarding an attribution requirement.
    Sec. 11.  Section 68A.405, subsection 4, Code 2020, is amended to read as follows:
   4.  The board shall adopt rules relating to the placing of an attribution statement on published materials and electioneering communication.
EXPLANATION
The inclusion of this explanation does not constitute agreement with
the explanation’s substance by the members of the general assembly.
   This bill relates to campaign finance. The bill changes the definition of “contribution” to include, with respect to payments for services, payments made by any person other than a candidate or committee who receives the service. The bill adds coordinated expenditures, defined in the bill as a communication made in coordination with a candidate, to the definition of “contribution” if the coordinated expenditure is required to be reported to the Iowa ethics and campaign disclosure board (board). The bill excludes from the definition of “express advocacy” communications that encourage individuals to register to vote or to vote; that do not support or oppose a candidate or ballot issue; that is a news story, commentary, blog, or editorial; that is by a membership organization to its members, stockholders, or employees; or that the board determines by rule is not express advocacy.
   The bill lowers the minimum amount of money that an organization must accept or expend before being considered a political committee from $1,000 to $250. The bill adds a definition for “communication” that includes paid broadcasts, placements of internet content, printed advertisements, mailings, and printed materials. The bill also defines “electioneering communication” as a communication made within 60 days of the commencement of voting in an election that is not express advocacy but which refers to one or more clearly identified candidate; depicts the name, image, likeness, or voice of a candidate; or refers to a political party, ballot issue, or a question submitted to voters at that election. “Electioneering communication” does not include a bona fide news story, commentary, blog, or editorial; a communication made by a membership organization to its members, stockholders, or employees; a commercial communication that depicts a candidate only in the candidate’s capacity as owner, operator, or employee of a business; a candidate debate forum or a promotion for a candidate debate forum; or a communication that the board determines by rule is not an electioneering communication.
   The bill changes the content required in a report filed by a permanent organization temporarily engaged in political activity. Such reports must include aggregate contributions made by each person who made a contribution to the organization, each loan received by the organization, the amount and nature of debts and obligations owed to the organization, proceeds that total less than $35 per person from mass collections made at fund-raising events, the total sum of contributions received for a particular candidate or committee, personal information of each person to whom an expenditure was made, personal information of each person who received a salary or reimbursement of expenses from the organization, the total sum of all expenditures made by the organization, personal information of each person to whom a loan was made, debts and obligations owed by the committee, and other information that may be required by the board by rule. Reports of expenditures for personal services in reports made by any entity must be itemized and detail the specific services provided. The bill also requires all reports submitted to the board to include the total sum of disbursements made.
   The bill requires a person making an electioneering communication to file a report with the board pursuant to rules of the board. Electioneering communications must also include attribution statements.
   By operation of law, a person who willfully violates a provision of the bill is guilty of a serious misdemeanor. A serious misdemeanor is punishable by confinement for no more than one year and a fine of at least $315 but not more than $1,875.