Text: HF00077 Text: HF00079 Text: HF00000 - HF00099 Text: HF Index Bills and Amendments: General Index Bill History: General Index
PAG LIN 1 1 Section 1. NEW SECTION. 56.31 LIMITATIONS ON CAMPAIGN 1 2 EXPENDITURES. 1 3 1. For purposes of sections 56.31 through 56.39G, a 1 4 candidate for governor and a candidate for lieutenant 1 5 governor, running together, shall be deemed to be a single 1 6 candidate. All expenditures made by and expenditures made on 1 7 behalf of the candidate for lieutenant governor, that are 1 8 approved by the candidate as provided under section 56.13, 1 9 shall be considered to be expenditures by and approved 1 10 expenditures on behalf of the candidate for governor. 1 11 2. Except as otherwise provided in subsection 7, in a year 1 12 in which a general election is held for a state office sought 1 13 by a candidate for that office, expenditures shall not be made 1 14 by the candidate's committee for that candidate, and 1 15 expenditures made on behalf of the candidate that are approved 1 16 and imputed to a candidate under section 56.13 shall not be 1 17 made, if the sum of the candidate's committee expenditures and 1 18 approved expenditures exceeds the following: 1 19 a. For governor and lieutenant governor, running together, 1 20 one million five hundred thousand dollars. 1 21 b. For attorney general, one hundred fifty thousand 1 22 dollars. 1 23 c. For each of the offices of secretary of state, state 1 24 treasurer, secretary of agriculture, and state auditor, one 1 25 hundred thousand dollars. 1 26 d. For state senator, twenty-five thousand dollars. 1 27 e. For state representative, fifteen thousand dollars. 1 28 3. The limits prescribed in this section shall not apply 1 29 to any expenditure made or approved under section 56.13, or 1 30 any advance of credit incurred before January 1, 1997, unless 1 31 the goods or services for which they were made or incurred are 1 32 consumed or used after January 1, 1997. For purposes of this 1 33 section, an expenditure shall be deemed to be made at the time 1 34 that the action incurring the expense occurs, not at the time 1 35 that payment for the expense is made. 2 1 4. The limits imposed under subsection 2 shall also apply 2 2 to a contested race in a primary, but amounts expended in the 2 3 primary election shall be calculated separately from and shall 2 4 not count towards calculations relating to the limits and 2 5 threshold amounts specified for the general election. 2 6 5. In any year following a year in which a general or 2 7 special election is held for the state office held or sought, 2 8 the candidate's committee for a person who was a candidate for 2 9 or is the holder of the office shall not make, nor shall the 2 10 person approve under section 56.13, expenditures on behalf of 2 11 the candidate or holder of the office in excess of twenty 2 12 percent of the expenditure limits set forth in subsection 2. 2 13 6. On or before December 31 of each nonelection year, the 2 14 board shall determine and adopt rules establishing the 2 15 expenditure limits for each office specified in subsection 2 2 16 for the next calendar year. 2 17 7. a. The expenditure limits imposed under this section 2 18 apply only to candidates in a contested election for a state 2 19 office who agree and whose opponents agree to be bound by the 2 20 limits imposed by this section and section 56.32. Candidates 2 21 who agree to abide by the limits contained in this section 2 22 shall, if they are otherwise eligible to receive a public 2 23 subsidy, receive a public subsidy for their campaigns from the 2 24 Iowa elections campaign fund as provided in section 56.39. 2 25 b. A candidate of a political party, as defined under 2 26 section 43.2, or a candidate of a qualified nonparty political 2 27 organization under chapter 44, who agrees to be bound by the 2 28 limits specified under this section and who receives a public 2 29 subsidy, but who has an opponent who is a member of a 2 30 political party under section 43.2 and who does not agree to 2 31 be bound by the limits imposed under this section and is 2 32 otherwise eligible to receive a public subsidy, shall not be 2 33 bound by the limits imposed under this section and shall 2 34 remain eligible to receive a public subsidy. 2 35 c. A candidate shall clearly disclose, in the manner 3 1 provided in section 56.14, on all campaign material, whether 3 2 the material is in a written, audio, or visual format, whether 3 3 the candidate has agreed to limit the receipt of contributions 3 4 and expenditure of funds in the manner provided in this 3 5 chapter. 3 6 For purposes of this subsection, "otherwise eligible to 3 7 receive a public subsidy" means that a candidate meets the 3 8 requirements of this section and sections 56.32, 56.39B, and 3 9 56.39D, the candidate has agreed to participate in at least 3 10 one public debate that is subject to the oversight of an 3 11 impartial sponsor, and the candidate has filed an affidavit of 3 12 matching funds under section 56.39E. 3 13 Sec. 2. NEW SECTION. 56.32 CONTRIBUTIONS LIMITATIONS. 3 14 1. In addition to the requirements contained in section 3 15 56.31, a candidate who is otherwise eligible to receive a 3 16 public subsidy shall also meet the requirements contained in 3 17 this section regarding receipt of contributions, as a 3 18 condition of receiving those funds. 3 19 2. Candidates for the office of state representative or 3 20 state senator shall meet the following limitations on receipt 3 21 of contributions: 3 22 a. Contributions received from private individuals shall 3 23 not exceed two hundred dollars per individual. 3 24 b. Seventy-five percent of the contributions received from 3 25 private individuals shall be from individuals who reside 3 26 within the district represented by the office sought. 3 27 c. Contributions received from family members of the 3 28 candidate shall not exceed five hundred dollars per family 3 29 member. 3 30 d. Contributions from the candidate's own personal funds 3 31 shall not exceed one thousand dollars. 3 32 3. Candidates for any statewide elected office shall meet 3 33 the following limitations on receipt of contributions: 3 34 a. Contributions received from private individuals shall 3 35 not exceed five hundred dollars per individual. 4 1 b. Seventy-five percent of the contributions received from 4 2 private individuals shall be from individuals who reside 4 3 within the state. 4 4 c. Contributions received from family members of the 4 5 candidate shall not exceed one thousand dollars per family 4 6 member. 4 7 d. Contributions from the candidate's own personal funds 4 8 shall not exceed fifteen thousand dollars. 4 9 4. The limitations contained in this section shall also 4 10 apply to the matching funds amount required to be raised by a 4 11 candidate under section 56.39E. 4 12 Sec. 3. NEW SECTION. 56.32A MULTICANDIDATE POLITICAL 4 13 PARTY EXPENDITURES. 4 14 Notwithstanding any other provisions of this chapter, the 4 15 following expenditures by a state statutory or county 4 16 statutory political committee, a national political party, or 4 17 a nonparty political organization shall not be considered 4 18 contributions to or expenditures on behalf of any candidate 4 19 for purposes of section 56.31 or 56.32, and shall not be 4 20 allocated to any candidates pursuant to section 56.13: 4 21 1. Expenditures made on behalf of candidates of that party 4 22 generally, that do not refer to any specific candidate in any 4 23 advertisement published, posted, or broadcasted. 4 24 2. Expenditures made for the preparation, display, 4 25 mailing, or other distribution of an official party sample 4 26 ballot listing the names of three or more individuals whose 4 27 names are to appear on the ballot. 4 28 3. Expenditures made for any telephone conversation 4 29 including the names of three or more individuals whose names 4 30 are to appear on the ballot. 4 31 4. Expenditures made for any political party fundraising 4 32 effort on behalf of three or more candidates. 4 33 Sec. 4. NEW SECTION. 56.33 ADJUSTMENT OF LIMITATIONS BY 4 34 ANNUAL INFLATION FACTOR. 4 35 The limitations on expenditures contained in section 56.31, 5 1 subsection 2, shall be adjusted for general election years, as 5 2 provided in this section. By June 1 of a year in which a 5 3 general election is to be held, the board shall determine the 5 4 amounts by which the limits established in section 56.31, 5 5 subsection 2, are to be increased. The amounts of the 5 6 increases shall equal the percentage of change represented by 5 7 the annual inflation factor, as defined under section 422.4, 5 8 subsection 1, paragraph "a", for the year immediately 5 9 preceding the year in which the election is to be held minus 5 10 the annual inflation factor for the year immediately preceding 5 11 the year in which the last general election was held, 5 12 multiplied by each of the limits established under section 5 13 56.31, subsection 2. Any amounts established under this 5 14 section shall be rounded up to the next highest whole dollar 5 15 figure. The board shall publish the products of the 5 16 calculation of increases and the new limits represented by the 5 17 addition of increases to the limits established under section 5 18 56.31, subsection 2, in the administrative bulletin. The new 5 19 limits as published in the administrative bulletin shall 5 20 constitute the limits for the general election that is to be 5 21 held that year. 5 22 Sec. 5. NEW SECTION. 56.34 PENALTY FOR EXCEEDING LIMITS. 5 23 1. If a candidate who has agreed to abide by the 5 24 expenditure limits contained in section 56.31 permits the 5 25 person's candidate's committee to make expenditures or 5 26 approves expenditures pursuant to section 56.13, in excess of 5 27 the limits imposed under section 56.31, the board shall impose 5 28 a civil penalty upon the candidate in an amount not to exceed 5 29 four times the amount by which the expenditures exceeded the 5 30 limit. 5 31 2. If a candidate who has agreed to abide by the 5 32 contributions limits contained in section 56.32 permits the 5 33 person's candidate's committee to receive contributions, in 5 34 excess of the limits imposed under section 56.32, the board 5 35 shall impose a civil penalty upon the candidate in an amount 6 1 equal to four times the amount by which the contributions 6 2 exceed the limit. 6 3 3. If the board finds that there is reason to believe that 6 4 excess expenditures have been made or excess contributions 6 5 have been accepted contrary to the provisions of this section 6 6 and sections 56.31 and 56.32, the board shall make every 6 7 effort, for a period of not less than fourteen days after 6 8 making the finding, to resolve the matter by informal methods 6 9 of dispute resolution. Any agreement reached between the 6 10 board and a candidate shall be a matter of public record. 6 11 Unless the terms of the agreement are violated, the agreement 6 12 shall be a bar to any other civil proceeding under this 6 13 section. 6 14 4. If the board is unable to resolve the matter 6 15 informally, the board shall make a public finding of probable 6 16 cause and may proceed as provided under sections 68B.32B and 6 17 68B.32C or may refer the matter to the appropriate county 6 18 attorney, or both. Moneys collected by the board pursuant to 6 19 this section shall be deposited in the Iowa elections campaign 6 20 fund. 6 21 Sec. 6. NEW SECTION. 56.35 FREEDOM TO ASSOCIATE AND 6 22 COMMUNICATE. 6 23 Nothing in this chapter shall be construed to abridge the 6 24 right of an association to communicate with its members. 6 25 Sec. 7. NEW SECTION. 56.36 CIRCUMVENTION PROHIBITED. 6 26 Any attempt by an individual or association to circumvent 6 27 the provision of sections 56.31 through 56.34 by redirecting 6 28 funds through, or contributing funds on behalf of, another 6 29 person is an aggravated misdemeanor. 6 30 Sec. 8. NEW SECTION. 56.37 IOWA ELECTIONS CAMPAIGN FUND. 6 31 An Iowa elections campaign fund is established within the 6 32 office of the treasurer of state. The fund shall consist of 6 33 funds paid by persons as provided in section 56.38. Within 6 34 the Iowa elections campaign fund the treasurer shall maintain 6 35 a separate political party account for each of the central or 7 1 executive committees of political parties or qualified 7 2 nonparty political organizations and a general account for the 7 3 candidates for state office. 7 4 Sec. 9. NEW SECTION. 56.38 DESIGNATION OF INCOME TAX 7 5 PAYMENTS. 7 6 1. Every individual resident of Iowa who files an income 7 7 tax return with the department of revenue and finance, and 7 8 whose state income tax liability for any taxable year is five 7 9 dollars or more, may designate on their original return that 7 10 five dollars of that liability be paid into the Iowa elections 7 11 campaign fund. If a husband and wife file a joint return, 7 12 each spouse may designate that five dollars be paid into the 7 13 fund. An individual shall not be allowed to designate or 7 14 withhold more than five dollars in any year. 7 15 2. The taxpayer, in making the designation, may designate 7 16 that the amount designated be paid into the account of a 7 17 political party or into the general account. All 7 18 contributions directed to the Iowa elections campaign fund by 7 19 taxpayers who do not designate a political party or who do not 7 20 designate that moneys are to be paid to the general account 7 21 shall be divided evenly between the general account and the 7 22 party account, and evenly divided between political parties 7 23 and qualified nonparty political organizations within the 7 24 party account. 7 25 3. The director of revenue and finance shall provide, on 7 26 the first page of the income tax form, a space for the 7 27 individual to indicate a desire to allocate five dollars, or 7 28 ten dollars in the case of a joint return, from the general 7 29 fund of the state to finance the election campaigns of state 7 30 candidates. The form shall also contain language prepared by 7 31 the director that permits the individual to direct the state 7 32 to allocate the five dollars, or ten dollars in the case of a 7 33 joint return, as follows: 7 34 a. To a political party as defined under section 43.2 or 7 35 to a political organization, which does not meet the 8 1 requirements of section 43.2, but which has nominated 8 2 candidates or has candidates' names placed on the ballot and 8 3 meets the requirements of subsection 5. 8 4 b. To all candidates for statewide office who receive at 8 5 least five percent of the votes cast in the general election 8 6 and to all candidates for legislative office who received at 8 7 least ten percent of the votes cast in the general election 8 8 for the specific office for which they were candidates. 8 9 4. Each employer or withholding agent, as defined under 8 10 section 422.4, shall permit each individual to whom wages are 8 11 paid the option of withholding amounts not to exceed one 8 12 dollar from any one paycheck or a total of not more than five 8 13 dollars from all paychecks for purposes of depositing the 8 14 moneys into the Iowa elections campaign fund. In the event 8 15 that an employee elects to withhold funds from the employee's 8 16 paycheck, the employee shall direct the state to allocate any 8 17 moneys withheld by making the appropriate designation on the 8 18 employee's income tax form. 8 19 5. A nonparty political organization under chapter 44 8 20 which does not meet the criteria established for designation 8 21 as a political party under section 43.2 qualifies for 8 22 inclusion on the income tax form under this section and 8 23 receipt of a public subsidy under this chapter, if all of the 8 24 following criteria are met: 8 25 a. The organization files a petition for inclusion on the 8 26 form by June 1 of the taxable year or, if the organization ran 8 27 a candidate for statewide office, the office shall have been 8 28 the office of governor and lieutenant governor, secretary of 8 29 state, auditor of state, treasurer of state, secretary of 8 30 agriculture, or attorney general. 8 31 b. The secretary of state has certified to the director of 8 32 revenue and finance and the treasurer of state that the 8 33 organization is a qualified political organization. 8 34 6. The secretary of state shall certify that a political 8 35 organization is qualified, for purposes of inclusion on the 9 1 income tax form as provided in this section, if the political 9 2 organization nominated and ran a candidate for a statewide 9 3 office as provided in chapter 44; the political organization 9 4 held a convention or caucus in the last two years, adopted a 9 5 state constitution, and elected state officers; and the 9 6 political organization has filed the certificate required 9 7 under section 44.3 relating to nomination of candidates at the 9 8 convention or caucus. 9 9 7. The amounts designated by and collected from individual 9 10 taxpayers are appropriated from the general fund. The 9 11 director of revenue and finance shall remit funds in an amount 9 12 equal to ninety percent of the estimated receipts, as 9 13 determined under section 56.39C, on a quarterly basis to the 9 14 treasurer of state who shall deposit the funds in the 9 15 appropriate accounts within the Iowa elections campaign fund. 9 16 By the beginning of the last calendar quarter of the calendar 9 17 year, the director shall determine the difference, if any, 9 18 between the estimated receipts and actual amounts necessary to 9 19 make the payments required under this chapter and adjust 9 20 payments to each account during the last calendar quarter to 9 21 reflect the difference. 9 22 Sec. 10. NEW SECTION. 56.39 ALLOCATION OF FUNDS TO 9 23 CANDIDATES AND PARTIES. 9 24 1. In each calendar year the matching funds in the general 9 25 account shall be allocated to candidates who are otherwise 9 26 eligible to receive a public subsidy as provided under section 9 27 56.31, subsection 7, on a dollar-for-dollar basis in the 9 28 following amounts: 9 29 a. Up to five hundred dollars for each of the following 9 30 offices: governor and lieutenant governor together, attorney 9 31 general, secretary of state, auditor of state, secretary of 9 32 agriculture, and treasurer of state. 9 33 b. Up to two hundred dollars for each of the following 9 34 offices: state senator and state representative. 9 35 2. In an election year, the money in the party account 10 1 shall be allocated to each political party and qualified 10 2 nonparty political organization according to the designations 10 3 made by taxpayers on the income tax forms. 10 4 3. Notwithstanding section 8.33, money contained in either 10 5 the party or general account that is not distributed in any 10 6 election year shall not revert to the general fund of the 10 7 state. Money from the general account refused by any 10 8 candidate shall be deposited in the fund for later 10 9 distribution. Interest earned on moneys deposited in either 10 10 account shall be credited to the respective account. 10 11 Sec. 11. NEW SECTION. 56.39A CERTIFICATION &endash; 10 12 DISTRIBUTION OF FUNDS. 10 13 1. The director of revenue and finance shall certify to 10 14 the treasurer of state on September 15, the amount of 10 15 available funds in each party account. In the event that, on 10 16 the date of certification of available funds in the party 10 17 account, less than ninety-eight percent of the tax returns 10 18 have been processed, the director shall on December 7 certify 10 19 to the board, which shall in turn certify to the treasurer of 10 20 state within one week, the amount to be distributed under 10 21 subsection 2. 10 22 2. Money allocated to an executive or central committee in 10 23 the Iowa elections campaign fund shall be paid by the 10 24 treasurer of state to each committee during the election year 10 25 on a monthly basis. Before July 1 of an election year, the 10 26 director of revenue and finance shall send the estimate of the 10 27 amount of tax moneys that will be in the party account to the 10 28 board. The board shall calculate an estimated amount to be 10 29 received by each executive or central committee and forward 10 30 the estimates to the treasurer of state and each executive or 10 31 central committee that is eligible to receive funds under this 10 32 section. Quarterly payments made by the department of revenue 10 33 and finance to the treasurer of state shall be deposited into 10 34 the party account no later than the fifteenth day of the 10 35 calendar month following the end of the calendar quarter. The 11 1 treasurer of state shall make payments to each committee 11 2 during the election year in monthly installments, that shall 11 3 be as nearly equal as possible. The amounts paid to each 11 4 state committee are subject to adjustment and settlement at 11 5 the time of the last payment by the department of revenue and 11 6 finance. If the total amounts paid to the executive or 11 7 central committee of each political party or qualified 11 8 political organization for the calendar year are different 11 9 from the amount that should have been received during the same 11 10 period according to actual income tax receipts, the last 11 11 quarterly payment must be increased or decreased to the 11 12 fullest extent possible until the amount of the overpayment is 11 13 recovered or the underpayment is distributed. 11 14 3. Upon receipt of an affidavit of matching funds, the 11 15 board shall forward the name, the office sought, and mailing 11 16 address of the candidate's committee of the candidate named in 11 17 the affidavit to the treasurer of state. Within two weeks 11 18 after receipt of the affidavit of matching funds, the 11 19 treasurer of state shall distribute the appropriate amount to 11 20 the candidate named in the affidavit, according to the 11 21 allocations specified under section 56.39. 11 22 4. The board shall not use the information contained in 11 23 any supplementary report of a candidate's committee made as 11 24 provided in section 56.6, subsection 1, paragraph "b", for 11 25 purposes of reducing the amount due that candidate from the 11 26 general account. 11 27 5. For purposes of this section and section 56.39, a 11 28 write-in candidate is a candidate only if the candidate meets 11 29 the requirements contained in section 56.38, subsection 3, 11 30 paragraph "b", and signs the agreement as provided in section 11 31 56.39D. 11 32 Sec. 12. NEW SECTION. 56.39B SPECIAL ELECTION SUBSIDY. 11 33 1. Each eligible candidate for a legislative office in a 11 34 special election shall be eligible for a public subsidy equal 11 35 to the amount available to a candidate for the same office 12 1 during a general election. 12 2 2. If the date for filing nomination papers for the 12 3 special election does not coincide with the filing period for 12 4 the general election, a candidate who wishes to receive the 12 5 public subsidy provided for in this section shall submit a 12 6 signed agreement under section 56.39D to the board not later 12 7 than the day after the candidate files the nomination papers 12 8 for the office. To receive a subsidy, the candidate shall 12 9 meet the matching requirements contained in section 56.39E, 12 10 except that the dates in that section shall not apply to a 12 11 special election in which the filing period does not coincide 12 12 with the filing period for the general election. To the 12 13 extent feasible, the special election subsidy shall be 12 14 distributed in the same manner as money is distributed to 12 15 candidates in a general election. 12 16 3. The amount necessary to make the payment required by 12 17 this section is appropriated from the general fund of the 12 18 state to the treasurer of state. 12 19 Sec. 13. NEW SECTION. 56.39C ESTIMATES OF SIZE OF PARTY 12 20 ACCOUNT &endash; CERTIFICATION OF NUMBER OF CANDIDATES. 12 21 1. The department of revenue and finance shall calculate 12 22 and certify to the board before July 1 in an election year an 12 23 estimate of the total amount in the state party account to the 12 24 Iowa elections campaign fund and the amount of money that each 12 25 executive or central committee of a party or nonparty 12 26 political organization which qualifies, as provided in section 12 27 56.38, subsection 3, paragraph "a", may receive from the party 12 28 account in the Iowa elections campaign fund. This estimate 12 29 shall be based upon the allocations provided in section 56.39. 12 30 2. Before the first day of filing nomination papers 12 31 specified under section 43.11, the board shall publish and 12 32 forward to all filing officers the revised expenditure limits 12 33 and amounts specified under section 56.39 for public 12 34 subsidies, along with a copy of sections 56.31 and 56.32. 12 35 Within seven days after the last day specified under section 13 1 43.11 for the filing of nomination papers, the secretary of 13 2 state shall certify to the board the name, address, office 13 3 sought, and party affiliation of each candidate who has filed 13 4 nomination papers. The commissioner of elections of each 13 5 county shall certify to the board the same information for 13 6 each candidate who has filed nomination papers in that county. 13 7 Sec. 14. NEW SECTION. 56.39D PUBLIC SUBSIDY AGREEMENTS. 13 8 1. As a condition of receiving a public subsidy from the 13 9 Iowa elections campaign fund, a candidate shall sign and file 13 10 a written agreement with the board in which the candidate 13 11 agrees that the candidate will comply with sections 56.31, 13 12 56.32, 56.39E, and 56.39F. 13 13 Before the first day specified under section 43.11 for the 13 14 filing of nomination papers, the board shall forward agreement 13 15 forms to the state and all county commissioners of elections. 13 16 The board shall also provide agreement forms to candidates on 13 17 request at any time. The candidate may sign an agreement and 13 18 submit it along with the nomination papers to the 13 19 commissioner. The commissioner shall promptly forward the 13 20 agreement to the board. The candidate may also submit the 13 21 agreement directly to the board at any time before September 1 13 22 of the year in which the general election is to be held. 13 23 Except as otherwise provided, an agreement shall not be signed 13 24 or rescinded after September 1 of a year in which a general 13 25 election is to be held. 13 26 If a vacancy occurs that will be filled by means of a 13 27 special election and the filing period does not coincide with 13 28 the filing period for the general election, a candidate may 13 29 sign and submit a spending limit agreement at any time before 13 30 the deadline for certification of candidacy under section 13 31 43.88. 13 32 The board shall forward a copy of any agreement signed by a 13 33 candidate under this section to the director of revenue and 13 34 finance. 13 35 2. The expenditure limits agreement, as modified by any 14 1 adjustments in the applicable limits under section 56.33, that 14 2 is executed by a candidate remains in effect for the candidate 14 3 until the dissolution of the person's candidate's committee or 14 4 the first day that nomination papers may be filed for the next 14 5 succeeding election to the office held or sought at the time 14 6 of the agreement, whichever first occurs. 14 7 Sec. 15. NEW SECTION. 56.39E MATCHING FUNDS 14 8 CERTIFICATION. 14 9 In addition to the requirements of section 56.38, 14 10 subsection 3, paragraph "b", and section 56.39D, to be 14 11 eligible to receive a public subsidy from the Iowa elections 14 12 campaign fund, a candidate shall file an affidavit with the 14 13 board stating that the candidate has accumulated contributions 14 14 equal to fifteen percent or more of the expenditure limit for 14 15 the particular state office. The candidate or the candidate's 14 16 treasurer shall submit the affidavit required by this section 14 17 to the board in writing by October 1 of a general election 14 18 year. Upon receipt of the affidavit of matching funds the 14 19 board shall forward a copy of the affidavit to the treasurer 14 20 of state. 14 21 Sec. 16. NEW SECTION. 56.39F RETURN OF PUBLIC SUBSIDY. 14 22 1. A candidate shall return all or a portion of the public 14 23 subsidy received from the Iowa elections campaign fund under 14 24 any of the following circumstances: 14 25 a. To the extent that receipt of the amount of the public 14 26 subsidy received by the candidate would cause the candidate to 14 27 exceed the expenditure limits for the office held or sought, 14 28 as determined under section 56.31 and adjusted under section 14 29 56.33, the treasurer of the candidate's committee shall return 14 30 the excess to the board. 14 31 b. To the extent that the amount of public subsidy 14 32 received exceeds the aggregate of actual expenditures made by 14 33 the candidate's committee of a candidate and the expenditures 14 34 made on behalf of the candidate and approved by the candidate 14 35 under section 56.13, the treasurer of the candidate's 15 1 committee shall return an amount equal to the difference to 15 2 the board. 15 3 Any amount required to be returned shall not exceed the 15 4 amount of the public subsidy received by the candidate from 15 5 the Iowa elections campaign fund. 15 6 2. Money in the account of a candidate's committee on 15 7 January 1 of the election year for the office held or sought 15 8 shall be considered to be contributions accepted by that 15 9 candidate in that year for the purposes of the expenditure 15 10 limits set forth in section 56.31, as adjusted as provided 15 11 under section 56.33. The portion of contributions accepted by 15 12 a candidate in an election year that equals the amount of 15 13 noncampaign disbursements and contributions and expenditures 15 14 to promote or defeat a ballot issue that are made by the 15 15 candidate in that year shall not count toward the aggregate 15 16 contributions and approved expenditure limit imposed under 15 17 this section. For purposes of this section, a transfer from 15 18 one candidate's committee to a political party shall be 15 19 considered a noncampaign disbursement. 15 20 3. Each candidate shall determine if the candidate is 15 21 required to return all or a portion of the public subsidy 15 22 received from the Iowa elections campaign fund. Any amount 15 23 required to be returned shall be submitted in the form of a 15 24 check or money order and must accompany the report filed by 15 25 the candidate on January 31 of the year immediately succeeding 15 26 the year in which the election is held. The board shall 15 27 forward the check or money order to the treasurer of state for 15 28 deposit in the general fund of the state. 15 29 4. A candidate whose campaign spending is unlimited under 15 30 section 56.31, subsection 7, and who certifies that the 15 31 candidate made campaign expenditures equal to the full amount 15 32 of the public financing received, is not required to return 15 33 any portion of the money received from the Iowa elections 15 34 campaign fund under subsection 1, paragraph "b". 15 35 Sec. 17. NEW SECTION. 56.39G REMEDIES. 16 1 In addition to any other remedy provided by law, a person 16 2 charged with a duty under sections 56.39D through 56.39F shall 16 3 be personally liable for any penalty imposed by the board for 16 4 failing to discharge the duty. 16 5 The board may commence an action in district court in Polk 16 6 county to enforce any order to pay any late filing fee imposed 16 7 pursuant to this chapter. The board or a county attorney may 16 8 seek an injunction in the district court to enforce the 16 9 provisions of sections 56.39D through 56.39F. 16 10 Unless otherwise specifically provided, a violation of 16 11 sections 56.39D through 56.39F is not a public offense. 16 12 Sec. 18. Section 56.13, subsection 1, unnumbered paragraph 16 13 1, Code 1995, is amended to read as follows: 16 14 Action involving a contribution or expenditure which must 16 15 be reported under this chapter and which is taken by any 16 16 person, candidate's committee, or political committee on 16 17 behalf of a candidate, if known and approved by the candidate, 16 18 shall be deemed action by the candidate and reported by the 16 19 candidate's committee. If a candidate has signed an agreement 16 20 to limit the candidate's expenditures and receipt of 16 21 contributions, the action involving an expenditure or 16 22 contribution which must be reported under this chapter which 16 23 is taken by any person, candidate's committee, or political 16 24 committee on behalf of a candidate, if known and approved by 16 25 the candidate, shall be deemed action by the candidate, shall 16 26 be reported by the candidate's committee, and shall be 16 27 credited against the candidate's expenditure or contribution 16 28 limits pursuant to section 56.31 or 56.32. It shall be 16 29 presumed that a candidate approves the action if the candidate 16 30 had knowledge of it and failed to file a statement of 16 31 disavowal with the commissioner or board and take corrective 16 32 action within seventy-two hours of the action. A person, 16 33 candidate's committee, or political committee taking such 16 34 action independently of that candidate's committee shall 16 35 notify that candidate's committee in writing within twenty- 17 1 four hours of taking the action. The notification shall 17 2 provide that candidate's committee with the cost of the 17 3 promotion at fair market value. Failure to file a notice 17 4 required under this section, if a candidate has signed an 17 5 agreement under section 56.39D, shall result in a fine of up 17 6 to four times the amount of the expenditure. A copy of the 17 7 notification shall be sent to the board. If a candidate files 17 8 a statement of disavowal, but the board finds that the 17 9 candidate benefits from the expenditure, the board shall 17 10 credit the expenditure at its fair market value against the 17 11 candidate's expenditure or contribution limits. The board may 17 12 also authorize an increase in the candidate's opponent's 17 13 expenditure or contribution limits in an amount equal to the 17 14 fair market value of the disavowed expenditure. 17 15 Sec. 19. Section 56.14, Code 1995, is amended by adding 17 16 the following new unnumbered paragraph: 17 17 NEW UNNUMBERED PARAGRAPH. In addition to the 17 18 identification required in this section, the candidate's 17 19 committee of each candidate shall include on all printed 17 20 material, a statement, equal in size to the identification 17 21 information, whether the candidate has agreed to abide by the 17 22 limits imposed under sections 56.31 and 56.32. A similar 17 23 statement shall also be included, vocally, in all radio and 17 24 television commercials purchased on behalf of the candidate. 17 25 Candidates who have signed an agreement to limit their 17 26 campaign expenditures and contributions shall state the 17 27 following: "(name of candidate) agreed to limit campaign 17 28 spending and receipt of contributions." Candidates who refused 17 29 to sign an agreement to limit their campaign expenditures and 17 30 contributions shall state the following: "(name of candidate) 17 31 refused to agree to limit campaign spending and receipt of 17 32 contributions." The information required under this paragraph 17 33 may be included on materials and commercials used by a 17 34 candidate's opponent. 17 35 Sec. 20. Section 236.15A. unnumbered paragraph 5, Code 18 1 1995, is amended to read as follows: 18 2 The department of revenue and finance shall consult the 18 3 crime victim assistance board concerning the adoption of rules 18 4 to implement this section. However, before a checkoff 18 5 pursuant to this section shall be permitted, all liabilities 18 6 on the books of the department of revenue and finance and 18 7 accounts identified as owing under section 421.17 and the 18 8 political contribution allowed under section56.1856.38 shall 18 9 be satisfied. 18 10 Sec. 21. Section 422.12E, Code 1995, is amended to read as 18 11 follows: 18 12 422.12E INCOME TAX RETURN CHECKOFFS LIMITED. 18 13 For tax years beginning on or after January 1, 1995, there 18 14 shall be allowed no more than three income tax return 18 15 checkoffs on each income tax return. When the same three 18 16 income tax return checkoffs have been provided on the income 18 17 tax return for three consecutive years, the checkoff for which 18 18 the least amount has been contributed, in the aggregate for 18 19 the first two tax years and through March 15 of the third tax 18 20 year, shall be repealed. This section does not apply to the 18 21 income tax return checkoff provided in section56.1856.38. 18 22 Sec. 22. Section 456A.16, unnumbered paragraph 7, Code 18 23 1995, is amended to read as follows: 18 24 The department shall adopt rules to implement this section. 18 25 However, before a checkoff pursuant to this section shall be 18 26 permitted, all liabilities on the books of the department of 18 27 revenue and finance and accounts identified as owing under 18 28 section 421.17 and the political contribution allowed under 18 29 section56.1856.38 shall be satisfied. 18 30 Sec. 23. Sections 56.18, 56.19, 56.20, 56.21, 56.22, 18 31 56.23, 56.24, 56.25, and 56.26, Code 1995, are repealed. 18 32 Sec. 24. On the effective date of this Act, unencumbered 18 33 and unexpended funds contained in the party accounts in the 18 34 Iowa election campaign fund under section 56.19, shall be 18 35 transferred to the respective parties' accounts in the Iowa 19 1 election campaign fund established under section 56.38. Any 19 2 funds remitted to the treasurer of state by the director of 19 3 revenue and finance pursuant to the requirements of sections 19 4 56.18 and 56.19 after the effective date of this Act shall 19 5 also be deposited in the appropriate parties' accounts or, if 19 6 the taxpayer has not designated a political party to receive 19 7 the funds, shall be evenly divided among all of the party 19 8 accounts. 19 9 Sec. 25. Sections 1 through 7 and sections 10 through 22 19 10 of this Act take effect January 1, 1997. 19 11 Sec. 26. Section 9 of this Act applies retroactively to 19 12 January 1, 1995, for tax years beginning on or after that 19 13 date. 19 14 EXPLANATION 19 15 This bill establishes expenditure and contribution limits 19 16 for candidates for state office who agree, and whose opponents 19 17 agree, to abide by the limits and provides for publicly 19 18 subsidized matching funds for any candidate who agrees to the 19 19 limits. 19 20 Section 1 establishes the expenditure limits for each state 19 21 elective office. The limits are applicable separately to the 19 22 general and primary elections, and amounts expended during a 19 23 primary do not count towards the limits for the general 19 24 election. 19 25 Section 2 establishes the contribution limits that are 19 26 applicable to campaigns of candidates who agree to the limits. 19 27 The limitations on contributions also apply to the threshold 19 28 amount that must be raised before a candidate who agrees to 19 29 restrict expenditures and contributions can receive a matching 19 30 funds public subsidy. 19 31 Section 3 provides that expenditures made by a political 19 32 party or nonparty political organization do not count towards 19 33 the contribution or expenditure limits if they are made on 19 34 behalf of all candidates of the party generally or are made 19 35 for three or more candidates. 20 1 Section 4 provides for an adjustment of the expenditure 20 2 limitations based upon the annual inflation factor in the tax 20 3 code. 20 4 Section 5 provides for civil penalties in amounts equal to 20 5 up to four times the amount by which any candidate exceeds the 20 6 limits on expenditures or contributions. The section also 20 7 provides for informal settlement of violations committed by a 20 8 candidate. 20 9 Section 6 provides that chapter 56 is not to be construed 20 10 to abridge the right of an association to communicate with its 20 11 members. 20 12 Section 7 provides penalties for circumventing an agreement 20 13 to limit campaign expenditures and contributions by 20 14 redirecting funds through another person. 20 15 Sections 8 and 9 establish and provide the mechanism for 20 16 deposit of funds into the Iowa elections campaign fund. The 20 17 fund is funded through an income tax checkoff from taxpayers' 20 18 tax liabilities and provides for the establishment of 20 19 political party accounts within the fund to permit moneys to 20 20 be given to major and certain minor political parties and for 20 21 the establishment of a general account for purposes of 20 22 permitting moneys to be given as matching funds to candidates 20 23 for state office. Individual taxpayers have the right to 20 24 select where their contributions will be deposited. If no 20 25 selection is made, a mechanism for equal division of the funds 20 26 between the party accounts and the general account is 20 27 provided. 20 28 Section 10 sets out the amounts to be allocated to 20 29 candidates and political parties who are eligible to receive 20 30 funds. Sections 11 and 13 establish a certification process 20 31 related to the distribution of funds and indicates when the 20 32 funds will be paid. Section 12 indicates that the 20 33 expenditure, contribution, and public subsidy provisions may 20 34 also apply in a somewhat modified form to a special election. 20 35 Section 14 describes the agreements that are to be signed 21 1 by candidates who agree to expenditure and contribution limits 21 2 and indicates that the agreements may be filed with the 21 3 candidate's committee's statement of organization, but no 21 4 later than September 1 of a general election year. Section 15 21 5 provides for a certification of matching funds by a candidate, 21 6 which triggers payment of matching funds to a candidate under 21 7 section 11 of the bill. Section 16 provides for return of 21 8 portions of the public subsidy if the receipt of the moneys 21 9 causes a candidate to exceed applicable limitations. 21 10 Section 17 provides that persons who have a duty with 21 11 respect to agreements to abide by limitations are to be 21 12 personally liable for failure to discharge those duties. 21 13 Sections 18 and 19 relate to disclosures that must be 21 14 contained on campaign materials that are made by or on behalf 21 15 of a candidate and provide for attribution of independent 21 16 expenditures to a candidate. 21 17 Sections 20 through 22 make conforming amendments needed as 21 18 a result of the repeals contained in section 23. 21 19 Section 24 provides for the transition of funds remaining 21 20 in the Iowa elections fund or remitted under the former tax 21 21 checkoff mechanism to the party accounts established within 21 22 the new fund. 21 23 Section 25 repeals current provisions establishing an Iowa 21 24 elections campaign fund that currently provides money to 21 25 political parties and establishing a tax checkoff mechanism to 21 26 provide moneys for that fund. 21 27 Except for the provisions establishing the fund and the 21 28 income tax checkoff, the bill takes effect in 1997. The 21 29 checkoff will apply to the taxable year beginning January 1, 21 30 1995. Money will accumulate in the fund for use beginning in 21 31 1997. 21 32 LSB 1247YH 76 21 33 lh/cf/24
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