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House Amendment 5721

Amendment Text

PAG LIN
  1  1    Amend House File 2449, as amended, passed, and
  1  2 reprinted by the House, as follows:
  1  3    #1.  By striking everything after the enacting
  1  4 clause and inserting the following:
  1  5    "Section 1.  Sections 2 through 8 of this Act are
  1  6 created as a new division of chapter 56.
  1  7    Sec. 2.  NEW SECTION.  56.31  DEFINITIONS.
  1  8    As used in this division, unless the context
  1  9 requires otherwise:
  1 10    1.  "Advocacy information" is material published or
  1 11 broadcast which discusses public issues, candidates,
  1 12 or voting records from which a reasonable person could
  1 13 draw a fair inference that the material recommends the
  1 14 defeat or election of an identifiable candidate in a
  1 15 restricted campaign.
  1 16    2.  "Benefited candidate" means a candidate in a
  1 17 restricted campaign whose election is recommended or
  1 18 whose opponent's defeat is recommended by advocacy
  1 19 information or by the fair inferences drawn from the
  1 20 advocacy information by a reasonable person as
  1 21 determined by the board.
  1 22    3.  "Eligible office" means the offices of state
  1 23 representative, state senator, secretary of
  1 24 agriculture, secretary of state, treasurer of state,
  1 25 auditor of state, attorney general, and governor.  The
  1 26 office of lieutenant governor shall not be considered
  1 27 a separate eligible office but shall be considered
  1 28 with the office of governor for purposes of this
  1 29 division.
  1 30    4.  "Political action committee" means any
  1 31 political committee except a county statutory
  1 32 political committee, a state statutory political
  1 33 committee, a national political party, or a nonparty
  1 34 political organization under chapter 44.
  1 35    5.  "Qualifying nomination" means a nomination by a
  1 36 political party as defined by section 43.2, or a
  1 37 nomination under chapter 44 or 45.
  1 38    6.  "Restricted campaign" means a campaign for an
  1 39 eligible office in which there are two or more
  1 40 candidates with qualifying nominations and all of
  1 41 those candidates have registered with the board and
  1 42 voluntarily agreed to limit campaign expenditures and
  1 43 contributions pursuant to section 56.33.
  1 44    Sec. 3.  NEW SECTION.  56.32  REGISTRATION FOR A
  1 45 RESTRICTED CAMPAIGN.
  1 46    Each candidate for an eligible office shall
  1 47 register with the board and shall indicate whether the
  1 48 candidate voluntarily agrees to limit campaign
  1 49 expenditures and contributions in a restricted
  1 50 campaign prior to or with the filing of nomination
  2  1 papers pursuant to chapter 43, 44, or 45.
  2  2    Notwithstanding section 43.20, the nomination
  2  3 petition of a candidate who does not agree to a
  2  4 restricted campaign must contain signatures of at
  2  5 least twenty percent of the total number of votes cast
  2  6 in the last general election for that office.  A
  2  7 candidate nominated pursuant to section 43.66 who does
  2  8 not agree to a restricted campaign must file a
  2  9 nomination petition within fifteen days of nomination
  2 10 containing signatures of at least twenty percent of
  2 11 the total number of votes cast in the last general
  2 12 election for that office in order to be placed on the
  2 13 general election ballot.  A candidate who agrees to a
  2 14 restricted campaign and whose opponent does not agree
  2 15 to a restricted campaign is not required to obtain
  2 16 signatures under this section, is not subject to the
  2 17 limitations on campaign expenditures or contributions
  2 18 imposed in this division, but shall be considered as a
  2 19 candidate who agreed to a restricted campaign for all
  2 20 other purposes of this following division.
  2 21    Notwithstanding the dates required for filing
  2 22 disclosure reports pursuant to section 56.6, a
  2 23 candidate who does not agree to a restricted campaign
  2 24 pursuant to this section shall file a disclosure
  2 25 report each month until June 30 of the year of the
  2 26 election.  Beginning July 1 of the year of the
  2 27 election, the candidate shall file a disclosure report
  2 28 every fourteen days until the date of the general
  2 29 election.  After the date of election, the candidate
  2 30 shall file a disclosure report each month until the
  2 31 candidate files nomination papers for the same or
  2 32 another public office, or closes the candidate's
  2 33 campaign account.
  2 34    The commissioner required to publish notice of the
  2 35 election and the ballot pursuant to section 49.53
  2 36 shall, simultaneously with such publication, publish
  2 37 the names of candidates who agree and do not agree to
  2 38 a restricted campaign using the following language
  2 39 where applicable:  "These candidates refused to limit
  2 40 their campaign spending."; or "These candidates
  2 41 voluntarily agreed to limit their campaign spending."
  2 42    Sec. 4.  NEW SECTION.  56.33  RESTRICTED CAMPAIGNS
  2 43 – LIMITS ON EXPENDITURES.
  2 44    If a restricted campaign exists, the candidate's
  2 45 committees of those candidates with qualifying
  2 46 nominations to that eligible office are subject to the
  2 47 following limits on expenditures:
  2 48    1.  Governor.  Total expenditure limit, five
  2 49 hundred thousand dollars in a primary election if
  2 50 there is no primary opponent, one million dollars in a
  3  1 primary election if there is a primary opponent, and
  3  2 one million five hundred thousand dollars in a general
  3  3 election.
  3  4    2.  Attorney general, secretary of agriculture,
  3  5 secretary of state, treasurer of state, and auditor of
  3  6 state.  Total expenditure limit, fifty thousand
  3  7 dollars in a primary election if there is no primary
  3  8 opponent, one hundred thousand dollars in a primary
  3  9 election if there is a primary opponent, and one
  3 10 hundred thousand dollars in a general election.
  3 11    3.  State senator.  Total expenditure limit, ten
  3 12 thousand dollars in a primary election if there is no
  3 13 primary opponent, twenty-five thousand dollars in a
  3 14 primary election if there is a primary opponent, and
  3 15 twenty-five thousand dollars in a general election.
  3 16    4.  State representative.  Total expenditure limit,
  3 17 five thousand dollars in a primary election if there
  3 18 is no primary opponent, fifteen thousand dollars in a
  3 19 primary election if there is a primary opponent, and
  3 20 fifteen thousand dollars in a general election.
  3 21    For purposes of this division, an expenditure
  3 22 occurs at the time of performance and not at the time
  3 23 of payment.
  3 24    Actions involving an expenditure taken on behalf of
  3 25 a candidate in a restricted campaign shall be
  3 26 accepted, reported, and credited against the limits of
  3 27 this section, or disavowed pursuant to section 56.13.
  3 28 Actions taken by a county or state statutory political
  3 29 committee or a national political party which benefit
  3 30 the political party generally and which benefit more
  3 31 than one candidate shall not be considered as
  3 32 expenditures under this division.
  3 33    The board shall, by July 1 in each odd-numbered
  3 34 year, adjust the limitations on expenditures to
  3 35 reflect any increase in the consumer price index as
  3 36 released by the federal government.
  3 37    Sec. 5.  NEW SECTION.  56.34  PERIODS THE
  3 38 EXPENDITURE LIMITS ARE IN EFFECT.
  3 39    If a restricted campaign exists, the limitations of
  3 40 section 56.33 apply to expenses incurred during the
  3 41 following periods:
  3 42    1.  During an even-numbered year, from the date the
  3 43 candidate or the candidate's treasurer files a
  3 44 statement of organization as required by section 56.5,
  3 45 or from the date the candidate or the candidate's
  3 46 designee files an affidavit of candidacy with the
  3 47 state commissioner of elections, whichever date is
  3 48 earlier, through the date of the general election for
  3 49 that office.
  3 50    2.  During a special election, from the date the
  4  1 candidate or the candidate's treasurer files a
  4  2 statement of organization as required by section 56.5,
  4  3 or from the date the candidate or the candidate's
  4  4 designee files an affidavit of candidacy with the
  4  5 state commissioner of elections, whichever date is
  4  6 earlier, through the date of the special election for
  4  7 that office.
  4  8    Sec. 6.  NEW SECTION.  56.35  ADJUSTMENTS FOR
  4  9 BENEFITED CANDIDATES AND OPPONENTS.
  4 10    1.  A person or political committee which causes
  4 11 the publication, mass mailing, or broadcast of
  4 12 advocacy information in a restricted campaign shall
  4 13 give notice to the board and to the benefited
  4 14 candidate.  The notice shall be given by certified
  4 15 restricted mail within twenty-four hours after the
  4 16 publication, mailing, or broadcast of the advocacy
  4 17 information and be accompanied by the text of the
  4 18 advocacy information and the amount of the
  4 19 publication, mailing, or broadcasting expenditures.
  4 20    2.  The benefited candidate shall notify the board
  4 21 within seventy-two hours of receipt of notice given
  4 22 pursuant to subsection 1 whether the candidate accepts
  4 23 or disavows the expenditure.  If the candidate accepts
  4 24 the expenditure, the anticipated expenditure shall be
  4 25 credited against the candidate's expenditure limit.
  4 26 If the candidate files a statement of disavowal, the
  4 27 board shall forward a copy of the statement to the
  4 28 candidate's opponent.
  4 29    3.  For the purposes of this section, the board
  4 30 shall disregard the first five hundred dollars of
  4 31 aggregate disavowed expenditures regarding a benefited
  4 32 candidate for the general assembly, the first one
  4 33 thousand dollars of aggregate disavowed expenditures
  4 34 regarding a benefited candidate for a statewide office
  4 35 other than governor, and the first five thousand
  4 36 dollars of aggregate disavowed expenditures regarding
  4 37 a benefited candidate for governor.  If the aggregate
  4 38 disavowed expenditures regarding a benefited candidate
  4 39 exceed the amounts provided in this section, the board
  4 40 shall determine if a reasonable person would or would
  4 41 not draw a fair inference that the material assists
  4 42 the election of the benefited candidate or the defeat
  4 43 of an opposing candidate.  If the board determines
  4 44 that a candidate is benefited, the board shall
  4 45 attribute the disavowed expenditure to the expenditure
  4 46 limits of the benefited candidate and shall do one of
  4 47 the following:  increase the benefited candidate's
  4 48 opponent's expenditure limits by the amount of the
  4 49 disavowed expenditures attributed to the benefited
  4 50 candidate or eliminate the expenditure limit of the
  5  1 benefited candidate's opponent for that election
  5  2 period.
  5  3    4.  The board by rule may delegate decisions under
  5  4 subsection 3 to a panel of three members of the board.
  5  5 If delegated, the decisions of the panel constitute
  5  6 final agency action for the purposes of chapter 17A.
  5  7 Notwithstanding section 17A.19, a petition for
  5  8 judicial review of a decision under this section shall
  5  9 be filed only in Polk county district court, the court
  5 10 shall not stay the increase or elimination of the
  5 11 limits for the candidates opposing the benefited
  5 12 candidate pending the outcome of the judicial review
  5 13 proceeding, the petitioner has only two days after
  5 14 filing to provide notice or copies to the other
  5 15 parties, and the proceeding shall receive the highest
  5 16 priority among the cases before the district court.
  5 17    The decisions under subsection 3 shall be made
  5 18 within two days of the board's receipt of the
  5 19 benefited candidate's disavowal and the benefited
  5 20 candidate and opponents shall be promptly notified.
  5 21    Advocacy information caused by a county or state
  5 22 statutory political committee or a national political
  5 23 party which benefits the political party generally and
  5 24 which benefit more than one candidate are not subject
  5 25 to the requirements of this section.
  5 26    Sec. 7.  NEW SECTION.  56.36  RESTRICTED CAMPAIGNS
  5 27 – LIMITS ON ACCEPTANCE OF CONTRIBUTIONS.
  5 28    If a restricted campaign exists, the acceptance of
  5 29 contributions by candidates for the following offices
  5 30 from political action committees and individuals is
  5 31 subject to the following limitations:
  5 32    1.  Governor.
  5 33    a.  Total political action committee contributions,
  5 34 thirty-five percent of the candidate's applicable
  5 35 expenditure limit in a primary election, and thirty-
  5 36 five percent of the candidate's expenditure limit in a
  5 37 general election.
  5 38    b.  Largest political action committee
  5 39 contribution, five thousand dollars.
  5 40    c.  Largest individual contribution, excluding
  5 41 contributions made by a candidate to the candidate's
  5 42 own campaign, one thousand dollars.
  5 43    2.  Attorney general, secretary of agriculture,
  5 44 secretary of state, treasurer of state, and auditor of
  5 45 state.
  5 46    a.  Total political action committee contributions,
  5 47 thirty-five percent of the candidate's applicable
  5 48 expenditure limit in a primary election, and thirty-
  5 49 five percent of the candidate's expenditure limit in a
  5 50 general election.
  6  1    b.  Largest political action committee
  6  2 contribution, five thousand dollars.
  6  3    c.  Largest individual contribution, excluding
  6  4 contributions made by a candidate to the candidate's
  6  5 own campaign, one thousand dollars.
  6  6    3.  State senator.
  6  7    a.  Total political action committee contributions,
  6  8 thirty-five percent of the candidate's applicable
  6  9 expenditure limit in a primary election, and thirty-
  6 10 five percent of the candidate's expenditure limit in a
  6 11 general election.
  6 12    b.  Largest political action committee
  6 13 contribution, one thousand dollars.
  6 14    c.  Largest individual contribution, excluding
  6 15 contributions made by a candidate to the candidate's
  6 16 own campaign, five hundred dollars.
  6 17    4.  State representative.
  6 18    a.  Total political action committee contributions,
  6 19 thirty-five percent of the candidate's applicable
  6 20 expenditure limit in a primary election, and thirty-
  6 21 five percent of the candidate's expenditure limit in a
  6 22 general election.
  6 23    b.  Largest political action committee
  6 24 contribution, one thousand dollars.
  6 25    c.  Largest individual contribution, excluding
  6 26 contributions made by the candidate to the candidate's
  6 27 own campaign, five hundred dollars.
  6 28    5.  Individual contributions to the candidate or
  6 29 candidate's committee made by one individual of a
  6 30 cumulative value of one hundred dollars or more shall
  6 31 be reported, including the name, address, occupation,
  6 32 and place of business of the contributor.
  6 33    Sec. 8.  NEW SECTION.  56.37  PENALTIES.
  6 34    1.  A candidate who voluntarily agrees to a
  6 35 restricted campaign, and who exceeds the expenditure
  6 36 or contribution limitations in this division, shall be
  6 37 subject to a fine which is based on the percentage by
  6 38 which the candidate exceeds permitted expenditures or
  6 39 contributions, so that the candidate shall pay a
  6 40 percentage of the excess campaign expenditures or
  6 41 contributions as follows:
  6 42    a.  Governor.  Under two thousand dollars, one
  6 43 percent; two thousand to ten thousand dollars, ten
  6 44 percent; ten thousand one to twenty thousand dollars,
  6 45 twenty-five percent; over twenty thousand dollars,
  6 46 fifty percent.
  6 47    b.  Attorney general, secretary of agriculture,
  6 48 secretary of state, treasurer of state, and auditor of
  6 49 state.  Under one thousand dollars, one percent; one
  6 50 thousand to five thousand dollars, ten percent; five
  7  1 thousand one to ten thousand dollars, twenty-five
  7  2 percent; over ten thousand dollars, fifty percent.
  7  3    c.  State senator.  Under five hundred dollars, one
  7  4 percent; five hundred to one thousand dollars, ten
  7  5 percent; one thousand one to five thousand dollars,
  7  6 twenty-five percent; over five thousand dollars, fifty
  7  7 percent.
  7  8    d.  State representative.  Under two hundred fifty
  7  9 dollars, one percent; two hundred fifty to five
  7 10 hundred dollars, ten percent; five hundred one to two
  7 11 thousand five hundred dollars, twenty-five percent;
  7 12 over two thousand five hundred dollars, fifty percent.
  7 13    Fines collected pursuant to this section shall be
  7 14 paid to the state political party of the violating
  7 15 candidate's opponent.
  7 16    2.  Mileage expenses of the candidate, at a rate
  7 17 determined pursuant to section 2.10, are not subject
  7 18 to the expenditure limits of section 56.33.
  7 19    3.  The criminal penalty of section 56.16 applies
  7 20 to violations of this division.
  7 21    4.  A candidate who knowingly and intentionally
  7 22 violates the expenditure or contribution limits of
  7 23 section 56.33 or section 56.36 is, upon conviction,
  7 24 guilty of a class "D" felony, but is only subject to a
  7 25 fine and is not subject to imprisonment,
  7 26 notwithstanding the provisions of section 902.9.  A
  7 27 candidate shall not take the oath of office pending
  7 28 conviction or acquittal, following trial, on charges
  7 29 brought under this subsection, and a candidate is
  7 30 disqualified from holding office upon conviction
  7 31 obtained pursuant to this subsection.
  7 32    Sec. 9.  Section 56.6, subsection 1, paragraphs c
  7 33 and d, Code Supplement 1995, are amended to read as
  7 34 follows:
  7 35    c.  A candidate's committee for a candidate for the
  7 36 general assembly at a special election for which the
  7 37 governor is required to give not less than forty days'
  7 38 notice under section 69.14 shall file a report by the
  7 39 fourteenth day prior to the special election which is
  7 40 current through the nineteenth day prior to the
  7 41 special election.  A candidate's committee for a
  7 42 candidate for the general assembly at a special
  7 43 election for which the governor is required to give
  7 44 not less than eighteen days' notice under section
  7 45 69.14 shall file a report five days prior to the
  7 46 election, that shall be current as of five days prior
  7 47 to the filing deadline.  Any report filed pursuant to
  7 48 this paragraph shall be timely filed, or mailed
  7 49 bearing a United States postal service postmark dated
  7 50 on or before the due date.
  8  1    d.  Committees The following committees shall file
  8  2 their first reports five days prior to any election in
  8  3 which the ballot contains the name of the candidate or
  8  4 the local ballot issue which the committee supports or
  8  5 opposes:
  8  6    (1)  A candidate's committee for municipal and
  8  7 school elective offices and.
  8  8    (2)  A candidate's committee for a county elective
  8  9 office at a special election.
  8 10    (3)  Political committees for local ballot issues
  8 11 shall file their first reports five days prior to any
  8 12 election in which the name of the candidate or the
  8 13 local ballot issue which they support or oppose
  8 14 appears on the printed ballot and.
  8 15    These committees shall file their next report on
  8 16 the first day of the month following the final
  8 17 election in a calendar year in which the candidate's
  8 18 name or the ballot issue appears on the ballot.  A
  8 19 committee supporting or opposing a candidate for a
  8 20 municipal or school elective office or a local ballot
  8 21 issue These committees shall also otherwise file
  8 22 disclosure reports on the nineteenth day of January
  8 23 and October of each year in which the candidate or
  8 24 ballot issue does not appear on the ballot and on the
  8 25 nineteenth day of January, May, and July of each year
  8 26 in which the candidate or ballot issue appears on the
  8 27 ballot, until the committee dissolves.  These reports
  8 28 However, a candidate's committee for a county elective
  8 29 office at a special election shall file its regular
  8 30 disclosure reports as provided in paragraph "a".
  8 31    Any report filed pursuant to this lettered
  8 32 paragraph shall be current to five days prior to the
  8 33 filing deadline and are considered shall be timely
  8 34 filed, if or mailed bearing a United States postal
  8 35 service postmark on or before the due date.
  8 36    Sec. 10.  NEW SECTION.  56.38  ATTRIBUTION OF
  8 37 SPECIFIC CONTRIBUTIONS.
  8 38    When all general assembly members are invited to an
  8 39 event registered with the board, the costs associated
  8 40 with such an event shall be considered a contribution
  8 41 under chapter 56, and not a gift under chapter 68B.
  8 42 Event sponsors shall disclose the costs of the event
  8 43 to the board, and the board shall attribute the
  8 44 proportionate cost to each member of the general
  8 45 assembly, who shall not be required to disclose
  8 46 individually such contributions on the disclosure
  8 47 forms filed with the board.
  8 48    Sec. 11.  Sections 12 through 16 of this Act are
  8 49 created as a new division of chapter 56.
  8 50    Sec. 12.  NEW SECTION.  56.50  DEFINITIONS.
  9  1    For purposes of applying provisions in this
  9  2 division, unless the context otherwise requires:
  9  3    1.  "Board" means the truth in campaign practices
  9  4 board.
  9  5    2.  "Candidate" means a person who has taken
  9  6 affirmative action to seek nomination or election to a
  9  7 state legislative office or to the office of governor,
  9  8 lieutenant governor, secretary of state, auditor of
  9  9 state, treasurer of state, attorney general, or
  9 10 secretary of agriculture.
  9 11    3.  "Candidate's committee" means a candidate's
  9 12 committee as defined in section 56.2.
  9 13    4.  "Negative statement" means a statement which
  9 14 attacks the record, reputation, or integrity of a
  9 15 candidate or which attacks the reputation or integrity
  9 16 of a member of a candidate's immediate family.  For
  9 17 purposes of this chapter, a candidate's spouse,
  9 18 children, parents, and siblings are members of a
  9 19 candidate's immediate family.
  9 20    5.  "Political organization" means an organization
  9 21 which is not a political party but which meets the
  9 22 criteria established under section 44.1 for nomination
  9 23 of candidates.
  9 24    6.  "Political party" means a political party under
  9 25 section 43.2.
  9 26    7.  "Statement" means a public written, electronic,
  9 27 or oral communication which is made or transmitted by
  9 28 any means.  For purposes of this section, a
  9 29 communication is public if it is made or transmitted
  9 30 in a manner that can be reasonably expected to result
  9 31 in the statement being heard, read, or viewed by
  9 32 members of the general public.
  9 33    Sec. 13.  NEW SECTION.  56.51  STATEMENTS BY OR
  9 34 ABOUT CANDIDATES.
  9 35    1.  A candidate shall not make or cause to be made
  9 36 untruthful or deliberately misleading statements
  9 37 regarding a candidate.  For purposes of this section,
  9 38 a statement shall be deemed to have been caused by a
  9 39 candidate if it is made by a candidate's designated
  9 40 spokesperson, if it is contained in materials produced
  9 41 or paid for by the candidate's committee, or if it is
  9 42 contained in materials imputed to a candidate under
  9 43 section 56.13.
  9 44    2.  A person who is not a candidate shall not
  9 45 knowingly make untruthful or deliberately misleading
  9 46 statements about a candidate.
  9 47    3.  If a candidate or candidate's committee pays
  9 48 for or sponsors an oral negative statement about a
  9 49 candidate, the statement shall be stated by the
  9 50 candidate.  For purposes of this section, a statement
 10  1 which is imputed to a candidate under section 56.13 is
 10  2 not sponsored by a candidate or candidate's committee.
 10  3    Sec. 14.  NEW SECTION.  56.52  TRUTH IN CAMPAIGN
 10  4 PRACTICES BOARD.
 10  5    1.  A three-member truth in campaign practices
 10  6 board is established as an independent agency to
 10  7 investigate, review, and determine the truthfulness or
 10  8 deliberately misleading nature of statements made by
 10  9 candidates, and other persons in support or opposition
 10 10 of a candidate as well as to investigate negative
 10 11 statements made about candidates.  Members of the
 10 12 board shall be appointed by the chief justice of the
 10 13 supreme court.  Two members of the board shall be
 10 14 affiliated with one of the two political parties whose
 10 15 candidates for president of the United States or for
 10 16 governor, as the case may be, received the largest and
 10 17 next largest number of votes at the last general
 10 18 election but neither shall be affiliated with the same
 10 19 political party.  The other member shall not be
 10 20 affiliated with a political party, but may be
 10 21 affiliated with a political organization.
 10 22    2.  Members shall serve staggered four-year terms,
 10 23 which shall begin at 12:01 a.m. on May 1 in the year
 10 24 of appointment and end at 12:00 midnight on April 30
 10 25 in the year of expiration.  Any vacancy on the board
 10 26 shall be filled by appointment for the unexpired
 10 27 portion of the term, within ninety days of the vacancy
 10 28 and in accordance with the procedures for regular
 10 29 appointments.  A member of the board may be
 10 30 reappointed to serve additional terms on the board.
 10 31 Members may be removed in the same manner as provided
 10 32 in section 69.15 except that once a vacancy or
 10 33 resignation occurs, the governor shall notify the
 10 34 chief justice of the supreme court, who shall make
 10 35 another appointment.
 10 36    3.  The board shall annually elect one member to
 10 37 serve as the chairperson of the board and one member
 10 38 to serve as vice chairperson.  The vice chairperson
 10 39 shall act as the chairperson in the absence or
 10 40 disability of the chairperson, or in the event of a
 10 41 vacancy in that office.
 10 42    4.  Members of the board shall receive a per diem
 10 43 as specified in section 7E.6 while conducting business
 10 44 of the board, and payment of actual and necessary
 10 45 expenses incurred in the performance of their duties.
 10 46 Members of the board shall file statements of
 10 47 financial interest under section 68B.35.
 10 48    5.  The board shall employ a full-time executive
 10 49 director who shall be the board's chief administrative
 10 50 officer.  The board shall employ or contract for the
 11  1 employment of legal counsel notwithstanding section
 11  2 13.7, and may employ any other personnel as may be
 11  3 necessary to carry out the duties of the board.  The
 11  4 board's legal counsel shall be the chief legal officer
 11  5 of the board, and shall advise the board on all legal
 11  6 matters relating to the administration of this
 11  7 chapter.  The state may be represented by the board's
 11  8 legal counsel in any civil action regarding the
 11  9 enforcement of this chapter or, at the board's
 11 10 request, the state may be represented by the office of
 11 11 the attorney general.  Notwithstanding section 19A.3,
 11 12 all of the board's employees, except for the executive
 11 13 director and legal counsel, shall be employed subject
 11 14 to the merit system provisions of chapter 19A.
 11 15    Sec. 15.  NEW SECTION.  56.53  DUTIES OF THE BOARD.
 11 16    The duties of the board shall include, but are not
 11 17 limited to, all of the following:
 11 18    1.  Adopt rules pursuant to chapter 17A and conduct
 11 19 investigations and hearings pursuant to section 56.54
 11 20 and chapter 17A, as necessary to carry out the
 11 21 purposes of this chapter.
 11 22    2.  Adopt rules pursuant to chapter 17A
 11 23 establishing standards for truthfulness and avoidance
 11 24 of making deliberately misleading statements in
 11 25 campaign advertising by candidates under this chapter
 11 26 and requiring candidates to personally utter negative
 11 27 statements about candidates if the statement is paid
 11 28 for by the candidate or candidate's committee.
 11 29    3.  Develop, prescribe, and furnish any forms
 11 30 necessary for the implementation of the procedures
 11 31 contained in this chapter for the filing and hearing
 11 32 of complaints or the issuance of advisory opinions.
 11 33    4.  Establish and impose penalties and any other
 11 34 recommendations for punishment of persons who are
 11 35 subject to penalties of or punishment by the board for
 11 36 failure to comply with the requirements of this
 11 37 chapter.
 11 38    5.  Determine, in case of dispute, at what time a
 11 39 person has become a candidate.
 11 40    6.  Preserve copies of complaints, requests, and
 11 41 other information filed with the board for a period of
 11 42 at least five years from the date of receipt.
 11 43    7.  Establish a procedure for requesting and
 11 44 issuing formal and informal board opinions to
 11 45 candidates and representatives of political parties
 11 46 and political organizations.  Following advice
 11 47 contained in a formal board opinion shall constitute a
 11 48 defense to a complaint based upon the same facts and
 11 49 circumstances which is filed with the board and which
 11 50 alleges a violation of this chapter or rules of the
 12  1 board.
 12  2    8.  Establish a procedure for informing candidates
 12  3 and other persons of the requirements of this chapter
 12  4 and rules adopted by the board.
 12  5    9.  Establish fees, where necessary, to cover the
 12  6 costs associated with preparing, printing, and
 12  7 distributing materials to persons subject to the
 12  8 authority of the board.
 12  9    Sec. 16.  NEW SECTION.  56.54  COMPLAINTS –
 12 10 INVESTIGATIONS – HEARINGS.
 12 11    1.  A candidate, a representative of a candidate's
 12 12 committee, or a representative of a political party or
 12 13 political organization may file a complaint with the
 12 14 board regarding the truthfulness or deliberately
 12 15 misleading nature of any statement made or caused to
 12 16 be made by a candidate or alleging that a candidate or
 12 17 candidate's committee has paid for an oral negative
 12 18 statement which was made by someone other than the
 12 19 candidate.  For purposes of this section, a statement
 12 20 is caused to be made by a candidate if it is made by a
 12 21 candidate's designated spokesperson, is contained in
 12 22 materials produced or paid for by the candidate's
 12 23 committee, as defined under chapter 56, or if it is
 12 24 action or is a part of action which has been imputed
 12 25 to the candidate under section 56.13.
 12 26    2.  A complaint shall include all of the following:
 12 27    a.  The name and address of the complainant.
 12 28    b.  If the allegation is that an untruthful or
 12 29 deliberately misleading statement was made, a
 12 30 recitation of the statement alleged to be untruthful
 12 31 or deliberately misleading.
 12 32    c.  If the allegation is that a negative statement
 12 33 was paid for or sponsored by a candidate or
 12 34 candidate's committee and was made by a person other
 12 35 than the candidate, a recitation of the negative
 12 36 statement.
 12 37    d.  To the extent known, the time and place or
 12 38 manner in which the statement was made.
 12 39    e.  If the statement complained of was made in
 12 40 writing, a copy of the statement.
 12 41    f.  If the allegation is that an untruthful or
 12 42 deliberately misleading statement was made, any
 12 43 circumstances, other than the express language of the
 12 44 statement, which cause the statement to be untruthful
 12 45 or deliberately misleading.
 12 46    g.  The name and address, if known, of the
 12 47 candidate or other person who made the statement.
 12 48    h.  If the allegation is that an untruthful or
 12 49 deliberately misleading statement was made, a
 12 50 statement of why or how the statement complained of is
 13  1 untruthful or deliberately misleading.
 13  2    i.  A certification by the complainant under
 13  3 penalty of perjury that the facts stated to be true
 13  4 are true to the best of the complainant's knowledge.
 13  5    j.  Any other relevant information or sources of
 13  6 information.
 13  7    3.  The board staff and legal counsel shall review
 13  8 the complaint to determine if the complaint is
 13  9 sufficient as to form and legal substance.  Deficiency
 13 10 as to form shall not preclude consideration of a
 13 11 complaint.  If the complaint is legally deficient, the
 13 12 complaint shall be returned to the complainant with a
 13 13 statement of the deficiency and shall not be
 13 14 considered by the board until the deficiency is cured.
 13 15 A  legally sufficient complaint must meet all of the
 13 16 following requirements:
 13 17    a.  Facts must be alleged that would establish
 13 18 either that a candidate made or caused to be made an
 13 19 untruthful or deliberately misleading statement about
 13 20 another opposing candidate or that a candidate caused
 13 21 an oral negative statement to be made by someone other
 13 22 than the candidate.
 13 23    b.  The person making the complaint must be a
 13 24 candidate or a representative of a political party or
 13 25 political organization.
 13 26    c.  If the allegation is that an untruthful or
 13 27 deliberately misleading statement was made, the
 13 28 complaint must indicate why or demonstrate how the
 13 29 statement is untruthful or deliberately misleading.
 13 30    d.  The complaint must be filed within sixty days
 13 31 from the date on which the statement that is
 13 32 complained of was made.
 13 33    4.  Upon receiving a legally sufficient complaint,
 13 34 the board shall investigate or cause the investigation
 13 35 of the facts alleged in the complaint.  Once the
 13 36 investigation is completed, the board shall meet and
 13 37 make a determination as to whether the statement
 13 38 violates the requirements of this chapter or rules
 13 39 adopted by the board.  The meeting shall be conducted
 13 40 in the manner provided for contested cases under
 13 41 chapter 17A.  However, a preponderance of evidence
 13 42 shall be required to support a finding that a
 13 43 statement is untruthful or deliberately misleading.
 13 44 In addition to holding meetings at which two or more
 13 45 members are physically present, meetings may be held
 13 46 electronically as provided under section 21.8.
 13 47 Notwithstanding section 21.4, subsection 2, public
 13 48 notice of the meetings of the board shall be made at a
 13 49 reasonable time before the meeting, but no later than
 13 50 eight hours before the time set for the meeting to
 14  1 begin.
 14  2    5.  The board shall render its decision within
 14  3 forty-eight hours of receiving a legally valid
 14  4 complaint.  If the forty-eight-hour period concludes
 14  5 on a weekend or holiday, the decision shall be made by
 14  6 the close of business hours on the next succeeding
 14  7 business day.  If the board finds that the statement
 14  8 complained of was untruthful or deliberately
 14  9 misleading or that an oral negative statement was made
 14 10 by someone other than a candidate and was paid for by
 14 11 the candidate or candidate's committee, the board's
 14 12 decision shall include an order for any remedy, under
 14 13 section 56A.6, that the board deems appropriate.
 14 14    6.  At any stage during the investigation or after
 14 15 the filing of a complaint, the board may approve a
 14 16 settlement regarding an allegedly untruthful or
 14 17 deliberately misleading statement or negative
 14 18 statement made by someone other than a candidate.
 14 19 Terms of a settlement shall be reduced to writing and
 14 20 be available for public inspection.  In addition, the
 14 21 board may authorize board staff to seek information in
 14 22 voluntary compliance in routine matters brought to the
 14 23 attention of the board or its staff.
 14 24    7.  A complaint shall be a public record.  The
 14 25 entire record of the board's action, including any
 14 26 investigation, shall also be a public record.
 14 27    Sec. 17.  NEW SECTION.  56.55  REMEDIES.
 14 28    1.  If the board finds that a candidate or other
 14 29 person has made or caused to be made an untruthful or
 14 30 deliberately misleading statement, the board shall
 14 31 require a retraction of the statement by any person
 14 32 found to be responsible for making the statement or
 14 33 causing the statement to be made, within a period of
 14 34 time to be specified by the board, in the same manner
 14 35 and at the same cost as the original statement.  Any
 14 36 retraction shall be approved by the board before it is
 14 37 made public.  The board shall inform the complainant
 14 38 of any proposed retraction and permit the complainant
 14 39 to submit comments prior to the board's decision on
 14 40 approval or disapproval of the proposed language.
 14 41    2.  For any violations of this chapter or rules
 14 42 adopted by the board, the board may impose one or more
 14 43 of the following penalties:
 14 44    a.  Issue an order requiring the person to cease
 14 45 and desist from the violation.
 14 46    b.  Issue an order requiring the violator to take
 14 47 any remedial action deemed appropriate by the board.
 14 48    c.  Publicly reprimand the violator for violations
 14 49 of this chapter or rules adopted by the board.
 14 50    d.  Issue an order requiring the violator to pay a
 15  1 civil penalty of not more than fifty thousand dollars
 15  2 for each violation of this chapter or rules adopted by
 15  3 the board.
 15  4    3.  If a person fails to comply with an order of
 15  5 the board under this section, the board may petition
 15  6 the district court for an order for enforcement of the
 15  7 order of the board.  Judicial enforcement of orders of
 15  8 the board shall be sought in accordance with chapter
 15  9 17A.
 15 10    4.  At any stage in a proceeding, the board may
 15 11 refer the complaint and supporting information to the
 15 12 attorney general or appropriate county attorney with a
 15 13 recommendation for prosecution or enforcement of
 15 14 criminal penalties.
 15 15    Sec. 18.  Section 56.13, subsection 1, unnumbered
 15 16 paragraph 1, Code Supplement 1995, is amended to read
 15 17 as follows:
 15 18    Action involving a contribution or expenditure
 15 19 which must be reported under this chapter and which is
 15 20 taken by any person, candidate's committee or
 15 21 political committee on behalf of a candidate, if known
 15 22 and approved by the candidate, shall be deemed action
 15 23 by the candidate and reported by the candidate's
 15 24 committee.  If a restricted campaign exists, the
 15 25 action involving an expenditure or contribution which
 15 26 must be reported under this chapter which is taken by
 15 27 any person, candidate's committee, or political
 15 28 committee on behalf of a candidate, if known and
 15 29 approved by the candidate, shall be deemed action by
 15 30 the candidate, shall be reported by the candidate's
 15 31 committee, and shall be credited against the
 15 32 candidate's expenditure or contribution limits
 15 33 pursuant to section 56.33 or 56.36.  It shall be
 15 34 presumed that a candidate approves the action if the
 15 35 candidate had knowledge of it and failed to file a
 15 36 statement of disavowal with the commissioner or board
 15 37 and take corrective action within seventy-two hours of
 15 38 the action.  A person, candidate's committee or
 15 39 political committee taking such action independently
 15 40 of that candidate's committee shall notify that
 15 41 candidate's committee in writing within twenty-four
 15 42 hours of taking the action.  The notification shall
 15 43 provide that candidate's committee with the cost of
 15 44 the promotion at fair market value.  A copy of the
 15 45 notification shall be sent to the board.  If a
 15 46 candidate files a statement of disavowal, the board
 15 47 shall forward a copy of the statement to the
 15 48 candidate's opponent.
 15 49    Sec. 19.  Section 56.14, Code Supplement 1995, is
 15 50 amended by adding the following new unnumbered
 16  1 paragraph:
 16  2    NEW UNNUMBERED PARAGRAPH.  In addition to the
 16  3 identification required in this section, a candidate's
 16  4 committee of a candidate who is not registered for a
 16  5 restricted campaign pursuant to section 56.32 shall
 16  6 include, on all printed material, a statement, equal
 16  7 in size to the identification information, that the
 16  8 candidate is not registered for a restricted campaign.
 16  9 A similar disclaimer shall also be included, vocally,
 16 10 in all radio and television commercials purchased on
 16 11 behalf of the candidate.  Candidates who have not
 16 12 registered for a restricted campaign shall state the
 16 13 following:  "(name of candidate) refused to limit
 16 14 campaign spending."  The information required under
 16 15 this paragraph may be included on materials and
 16 16 commercials by a candidate who is registered for a
 16 17 restricted campaign.
 16 18    Sec. 20.  Section 68B.32A, Code Supplement 1995, is
 16 19 amended by adding the following new subsections:
 16 20    NEW SUBSECTION.  15.  Establish fees to cover the
 16 21 costs associated with creating, maintaining, and
 16 22 providing access to an electronic database of campaign
 16 23 finance disclosure information.  Payments received for
 16 24 these costs shall be considered repayment receipts as
 16 25 defined in section 8.2.
 16 26    Sec. 21.  ANTISEVERABILITY CLAUSE.  Notwithstanding
 16 27 section 4.12, if section 56.32, or section 56.35,
 16 28 subsection 3 or 4, or section 56.37, subsection 3, or
 16 29 the application thereof is invalid, this Act as a
 16 30 whole shall be invalid.
 16 31    Sec. 22.  SEVERABILITY CLAUSE.  Notwithstanding
 16 32 other sections of this Act, if any of sections 11
 16 33 through 17 of this Act, or the application of any of
 16 34 those sections, is declared unconstitutional, the
 16 35 invalidity shall not affect the provisions or
 16 36 application of this Act which can be given effect
 16 37 without the invalid provisions or application, and to
 16 38 this end, sections 11 through 17 are severable from
 16 39 this Act.
 16 40    Sec. 23.  EFFECTIVE DATE.  This Act, except
 16 41 sections 11 through 17, takes effect January 1, 1997.
 16 42 Sections 11 through 17 of this Act, being deemed of
 16 43 immediate importance, take effect upon enactment."
 16 44    #2.  Title page, line 1, by inserting after the
 16 45 word "contribution" the following:  "and expenditure".
 16 46    #3.  Title page, lines 1 through 3, by striking the
 16 47 words "by persons and political committees, addressing
 16 48 independent expenditures on behalf of candidates,
 16 49 employee and member contributions,".
 16 50    #4.  By renumbering as necessary.  
 17  1 HF 2449S
 17  2 jls/cc/26
     

Text: H05720                            Text: H05722
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