HF 697 (LSB 2755HV (2) 88)

HOUSE FILE 697

BY  COMMITTEE ON JUDICIARY

(SUCCESSOR TO HSB 223)

A BILL FOR

An Act restricting public agency disclosure of and access to certain personal information related to tax-exempt organizations, and providing penalties.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  Section 22.7, Code 2019, is amended by adding the following new subsection:
   NEW SUBSECTION.  74.  Personal information as defined in section 22A.1.
    Sec. 2.  NEW SECTION.  22A.1  Definitions.
   1.  “Personal information” means any list, record, register, registry, roll, roster, or other compilation of data that directly or indirectly identifies a person as a member, supporter, or volunteer of, or donor of financial or nonfinancial support to, any entity which is exempt from taxation under section 501(c) of the federal Internal Revenue Code. “Personal information” does not include information reportable to the secretary of state pursuant to section 504.1613 or information provided to the attorney general or state auditor pursuant to chapter 504 or 537, or section 714.16.
   2.  “Public agency” means all of the following:
   a.  A state or municipal governmental unit, including but not limited to the state of Iowa, a department, agency, office, commission, board, or division of the state.
   b.  A political subdivision of the state, including but not limited to a county, city, township, village, school district, or community college merged area.
   c.  An agency, authority, council, board, or commission of a political subdivision of the state.
   d.  A state or local court, tribunal, or other judicial or quasi-judicial body.
    Sec. 3.  NEW SECTION.  22A.2  Personal information protected.
   1.  A public agency shall not do any of the following:
   a.  Require an entity which is exempt from taxation under section 501(c) of the federal Internal Revenue Code to provide the public agency with personal information.
   b.  Release, publicize, or otherwise disclose personal information in the possession of the public agency without the express, written permission of every member, supporter, volunteer, and donor of the tax-exempt entity identified in the information and the tax-exempt entity.
   c.  Request or require a current or prospective contractor with the public agency to provide the public agency with a list of entities exempt from taxation under section 501(c) of the federal Internal Revenue Code to which the contractor has provided financial or nonfinancial support.
   2.  This section does not prohibit any of the following:
   a.  Disclosure of personal information pursuant to a lawful warrant issued by a court of competent jurisdiction.
   b.  Disclosure of personal information pursuant to a lawful request for discovery if all of the following requirements are met:
   (1)  The requestor demonstrates a compelling need for the personal information by clear and convincing evidence.
   (2)  The requestor obtains a protective order barring disclosure of personal information to any person not directly involved in the litigation.
   c.  Disclosure of personal information pursuant to an agreement between a public agency and an entity which is exempt from taxation under section 501(c) of the federal Internal Revenue Code.
    Sec. 4.  NEW SECTION.  22A.3  Civil penalties.
   1.  A person alleging a violation of this chapter, section 504.1604, subsection 5, or section 504.1605, subsection 5, may bring a civil action for injunctive relief, damages, or both. Damages may include either of the following:
   a.  Not less than two thousand five hundred dollars in compensatory damages for injury and loss for each violation.
   b.  For an intentional violation, not more than three times the amount described in paragraph “a” for each violation.
   2.  A court may, in its discretion, award all or a portion of the costs of litigation, including reasonable attorney fees and witness fees, to the complainant.
    Sec. 5.  NEW SECTION.  22A.4  Criminal penalties.
   A person who knowingly violates a provision of this chapter, section 504.1604, subsection 5, or section 504.1605, subsection 5, is guilty of a serious misdemeanor punishable by imprisonment for not more than ninety days or a fine of not more than one thousand dollars, or both.
    Sec. 6.  NEW SECTION.  22A.5  Campaign disclosure Act not affected.
   This chapter shall not affect any provision of chapter 68A.
    Sec. 7.  Section 504.1604, Code 2019, is amended by adding the following new subsection:
   NEW SUBSECTION.  5.  If the court orders inspection of records containing personal information as defined in section 22A.1, such inspection shall be made under seal from public disclosure. A person who violates this subsection is subject to civil penalties under section 22A.3. A person who knowingly violates this subsection is subject to criminal penalties under section 22A.4.
    Sec. 8.  Section 504.1605, Code 2019, is amended by adding the following new subsection:
   NEW SUBSECTION.  5.  To obtain personal information as defined in section 22A.1. A person who violates this subsection is subject to civil penalties under section 22A.3. A person who knowingly violates this subsection is subject to criminal penalties under section 22A.4.
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 certain personal information in the possession of certain tax-exempt and governmental entities. The bill prohibits a public agency, defined in the bill to include any governmental entity of Iowa or a political subdivision, from seeking the disclosure of personal information from an organization exempt from taxation under section 501(c) of the federal Internal Revenue Code that would directly or indirectly reveal the identity of a member, supporter, volunteer, or donor of the organization, or from requesting from a current or potential contractor a list of tax-exempt organizations that the contractor has supported. The bill also prohibits a public agency from publishing any such information that the public agency possesses.
   The bill allows the disclosure of personal information pursuant to a lawful warrant or discovery request. However, the bill requires the proponent of such a discovery request to show a compelling need for the information by clear and convincing evidence and to obtain a protective order barring unnecessary disclosure of the information.
   The bill also allows disclosure of personal information pursuant to an agreement between an organization and a public agency. The bill exempts from the definition of “personal information” information that must be reported to the secretary of state, attorney general, or state auditor pursuant to certain specified provisions of law.
   The bill amends the revised Iowa nonprofit corporation Act to require any inspection of corporate records containing personal information to be made under seal from public disclosure. The bill also prohibits corporate records from being used to obtain personal information.
   The bill exempts personal information from the definition of public records under Code chapter 22.
   A person who violates a provision of the bill is subject to a civil penalty of not less than $2,500 per violation, and not more than three times that amount for an intentional violation. The bill allows a court to award to a prevailing plaintiff an amount equal to all or a portion of the costs of litigation, including attorney and witness fees.
   A person who knowingly violates a provision of the bill is guilty of a serious misdemeanor punishable by imprisonment for not more than 90 days, a fine of $1,000, or both.
   The bill does not affect any provision of Code chapter 68A, which relates to campaign finance.