HSB 620 (LSB 5369DP (2) 88)

SENATE/HOUSE FILE _____

BY  (PROPOSED ETHICS AND CAMPAIGN DISCLOSURE BOARD BILL)

A BILL FOR

An Act relating to governmental ethics and the sale or lease of real estate by regulatory agency officials and employees to persons subject to the agency’s regulatory authority, and making penalties applicable.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  Section 68B.4, subsection 1, Code 2020, is amended to read as follows:
   1.  An official or employee of any regulatory agency shall not sell or lease, either directly or indirectly, any goods, real estate, or services to individuals, associations, or corporations subject to the regulatory authority of the agency of which the person is an official or employee, except when the official or employee has met all of the following conditions:
   a.  The consent of the regulatory agency for which the person is an official or employee is obtained and the person is not the official or employee with the authority to determine whether agency consent is to be given under this section.
   b.  The duties or functions performed by the official or employee for the regulatory agency are not related to the regulatory authority of the agency over the individual, association, or corporation, or the selling or leasing of goods, real estate, or services by the official or employee to the individuals, associations, or corporations does not affect the official’s or employee’s duties or functions at the regulatory agency.
   c.  The selling or leasing of any goods, real estate, or services by the official or employee to an individual, association, or corporation does not include advocacy on behalf of the individual, association, or corporation to the regulatory agency in which the person is an official or employee.
   d.  The selling or leasing of any goods, real estate, or services by the official or employee to an individual, association, or corporation does not cause the official or employee to sell or lease goods, real estate, or services to the regulatory agency on behalf of the individual, association, or corporation.
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 governmental ethics by prohibiting state regulatory agency officials and employees from selling or leasing real estate to persons subject to the agency’s regulatory authority unless certain conditions are met.
   Under current law, officials and employees of state regulatory agencies are prohibited from selling or leasing goods or services to individuals, associations, or corporations subject to the agency authority of which the person is an official or employee. However, this prohibition does not apply if consent for such sale or lease is obtained from the agency consistent with rules adopted by the Iowa ethics and campaign disclosure board; if the official’s or employee’s agency duties are not related to the regulatory authority of the agency over the individual, association, or corporation; if the selling or leasing of the goods or services does not include advocacy on behalf of the individual, association, or corporation to the agency; and if the selling or leasing of the goods or services does not cause the official or employee to sell or lease goods or services to the agency on behalf of the individual, association, or corporation. The bill extends this prohibition and the exception to the sale or lease of real estate.
   A person who knowingly and intentionally violates the bill is guilty of a serious misdemeanor and may be reprimanded, suspended, or dismissed from the person’s position or otherwise sanctioned. 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.