Text: HSB00675 Text: HSB00677 Text: HSB00600 - HSB00699 Text: HSB Index Bills and Amendments: General Index Bill History: General Index
PAG LIN 1 1 Section 1. Section 56.2, Code Supplement 1995, is amended 1 2 to read as follows: 1 3 56.2 DEFINITIONS. 1 4 As used in this chapter, unless the context otherwise 1 5 requires: 1 6 1. "Ballot issue" means a question, other than the 1 7 nomination or election of a candidate to a public office, 1 8 which has been approved by a political subdivision or the 1 9 general assembly or is required by law to be placed before the 1 10 voters of the political subdivision by a commissioner of 1 11 elections, or to be placed before the voters by the state 1 12 commissioner of elections. 1 13 2. "Board" means the Iowa ethics and campaign disclosure 1 14 board established under section 68B.32. 1 15 3. "Campaign function" means any meeting related to a 1 16 candidate's campaign for election. 1 17 4. "Candidate" means any individual who has taken 1 18 affirmative action to seek nomination or election to a public 1 19 office and shall also include any judge standing for retention 1 20 in a judicial election. 1 21 5. "Candidate's committee" means the committee designated 1 22 by the candidate for a state, county, city, or school office 1 23 to receive contributions in excess of five hundred dollars in 1 24 the aggregate, expend funds in excess of five hundred dollars 1 25 in the aggregate, or incur indebtedness on behalf of the 1 26 candidate in excess of five hundred dollars in the aggregate 1 27 in any calendar year. 1 28 6. "Commissioner" means the county auditor of each county, 1 29 who is designated as the county commissioner of elections 1 30 pursuant to section 47.2. 1 31 7. "Committee" includes a political committee and a 1 32 candidate's committee. 1 33 7A. "Computer" means an electronic device that performs 1 34 logical, arithmetical, and memory functions by manipulations 1 35 of electronic or magnetic impulses, and includes all 2 1 functions, connections, and connected and related devices that 2 2 assist in input, output, processing, storage, computer 2 3 programs, computer applications, and communication. 2 4 8. "Consultant" means a person who provides or procures 2 5 services for or on behalf of a candidate including but not 2 6 limited to consulting, public relations, advertising, 2 7 fundraising, polling, managing or organizing services. 2 8 9. a. "Contribution" means either of the following: 2 9a.(1) A gift, loan, advance, deposit, rebate, refund, or 2 10 transfer of money or a gift in kind. 2 11b.(2) The payment, by any person other than a candidate 2 12 or political committee, of compensation for the personal 2 13 services of another person which are rendered to a candidate 2 14 or political committee for any such purpose. 2 15 b. "Contribution" shall not includeservicesany of the 2 16 following: 2 17 (1) Services provided without compensation by individuals 2 18 volunteering their time on behalf of a candidate's committee 2 19 or political committee or a state or county statutory 2 20 political committee except when organized or provided on a 2 21 collective basis by a business, trade association, labor 2 22 union, or any other organized group or association. 2 23"Contribution" shall not include refreshments2 24 (2) Refreshments served at a campaign function so long as 2 25 such refreshments do not exceed fifty dollars in value or 2 26 transportation provided to a candidate so long as its value 2 27 computed at a rate of twenty cents per mile does not exceed 2 28 one hundred dollars in value in any one reporting period. 2 29"Contribution" shall not include something2 30 (3) Something provided to a candidate for the candidate's 2 31 personal consumption or use and not intended for or on behalf 2 32 of the candidate's committee. 2 33 10. "County office" includes the office of drainage 2 34 district trustee. 2 35 11. "County statutory political committee" means a 3 1 committee as defined in section 43.100. 3 2 12. "Disclosure report" means a statement of contributions 3 3 received, expenditures made, and indebtedness incurred on 3 4 forms prescribed by rules adopted by the board in accordance 3 5 with chapter 17A. 3 6 13. "Fundraising event" means any campaign function to 3 7 which admission is charged or at which goods or services are 3 8 sold. 3 9 14. "Group collection" means an accumulation of cash, 3 10 amassed through contributions from individual donors of ten 3 11 dollars or less each, in a receptacle which is intended for 3 12 such contributions and which is accessible by all persons 3 13 visiting a particular place or a particular social function, 3 14 either due to the placement of the receptacle in a place of 3 15 general availability to the attendees, or due to a method of 3 16 presenting the receptacle to the attendees. Due to the manner 3 17 in which such funds are amassed, identification of the 3 18 individual donors is understood to be impractical. 3 19 14A. "Internet" means the federated system of allied 3 20 computer networks linked by telecommunication channels that is 3 21 the international network of the networks that connects 3 22 educational, scientific, and commercial institutions, and that 3 23 may also be accessed by individuals. 3 2414.15. "National political party" means a party which 3 25 meets the definition of a political party established for this 3 26 state by section 43.2, and which also meets the statutory 3 27 definition of the term "political party" or a term of like 3 28 import in at least twenty-five other states of the United 3 29 States. 3 3015.16. "Person" means, without limitation, any 3 31 individual, corporation, government or governmental 3 32 subdivision or agency, business trust, estate, trust, 3 33 partnership or association, labor union, or any other legal 3 34 entity. 3 3516.17. a. "Political committee" means acommittee, but4 1notformal or informal association of two or more individuals, 4 2 other than a candidate's committee,which acceptsthat, in 4 3 performing any of the following activities, exceeds any of the 4 4 following financial thresholds: 4 5 (1) Accepts contributions for political purposes in excess 4 6 of five hundred dollars in the aggregate, makesin a calendar 4 7 year. 4 8 (2) Makes expenditures for political purposes in excess of 4 9 five hundred dollars in the aggregate, or incursin a calendar 4 10 year. 4 11 (3) Incurs indebtedness for political purposes in excess 4 12 of five hundred dollars in the aggregate inany onea calendar 4 13 yearfor the purpose of supporting or opposing a candidate for4 14public office, or for the purpose of supporting or opposing a4 15ballot issue;. 4 16 b. A "political committee"also means an, provided it has 4 17 exceeded at least one of the financial thresholds in paragraph 4 18 "a", includes but is not limited to any of the following 4 19 entities: 4 20 (1) A committee other than a candidate's committee that 4 21 supports or opposes more than one candidate for public office. 4 22 (2) A committee other than a candidate's committee that 4 23 supports or opposes a ballot issue. 4 24 (3) A formally organized association, lodge, society, 4 25 cooperative, union, fraternity, sorority, educational 4 26 institution, civic organization, labor organization, religious 4 27 organization,orprofessional organizationwhich accepts4 28contributions in excess of five hundred dollars in the4 29aggregate, makes expenditures in excess of five hundred4 30dollars in the aggregate, or incurs indebtedness in excess of4 31five hundred dollars in the aggregate in any one calendar year4 32for the purpose of supporting or opposing a candidate for4 33public office, or for the purpose of supporting or opposing a4 34ballot issue. "Political committee" also includes a committee4 35which accepts contributions in excess of five hundred dollars5 1in the aggregate, makes expenditures in excess of five hundred5 2dollars in the aggregate, or incurs indebtedness in excess of5 3five hundred dollars in the aggregate in a calendar year to5 4cause, or other permanent organization that temporarily 5 5 engages in political activity. 5 6 (4) A formal or informal association of two or more 5 7 individuals that causes the publication or broadcasting of 5 8 materialin which the public policy positions or voting record5 9ofthat a reasonable person would understand to advocate the 5 10 support of or opposition to the election of an identifiable 5 11 candidateis discussed and in which a reasonable person could5 12find commentary favorable or unfavorable to those public5 13policy positions or voting record. 5 1417.18. "Political purpose" or "political purposes" means 5 15 the support or opposition of a candidate or ballot issue. 5 1618.19. "Public office" means any state, county, city, or 5 17 school office filled by election. 5 1819.20. "State income tax liability" means the state 5 19 individual income tax imposed under section 422.5 reduced by 5 20 the sum of the deductions from the computed tax as provided 5 21 under section 422.12. 5 2220.21. "State statutory political committee" means a 5 23 committee as defined in section 43.111. 5 24 Sec. 2. Section 56.3, subsection 3, paragraph b, Code 5 25 Supplement 1995, is amended to read as follows: 5 26 b. The name and mailing address of every person making 5 27contributions in excess of ten dollarsa contribution, and the 5 28 date and amount of the contribution. This paragraph does not 5 29 apply to donations received from group collections. 5 30 Sec. 3. Section 56.3, subsection 3, paragraph d, Code 5 31 Supplement 1995, is amended to read as follows: 5 32 d. The name and mailing address of every person to whom 5 33 any expenditure is made, the purpose of the expenditure, the 5 34 date and amount of the expenditure and the name and address 5 35 of, and office sought by each candidate, if any, on whose 6 1 behalf the expenditure was made.Notwithstanding this6 2paragraph, the treasurer may keep a miscellaneous account for6 3disbursements of less than five dollars which need only show6 4the amount of the disbursement so long as the aggregate6 5miscellaneous disbursements to any one person during a6 6calendar year do not exceed one hundred dollars.6 7 Sec. 4. Section 56.3, Code Supplement 1995, is amended by 6 8 adding the following new subsection: 6 9 NEW SUBSECTION. 5. When a candidate, in the case of a 6 10 candidate's committee, or a chairperson, in the political 6 11 committee, shows that best efforts have been used to obtain, 6 12 maintain, and submit the information required by this chapter, 6 13 and that failure to satisfy a requirement of this chapter is 6 14 due to action or nonaction by another person, such that the 6 15 failure to satisfy the requirement is beyond the control of 6 16 the candidate or chairperson, the candidate or chairperson 6 17 shall be deemed to be in compliance with this chapter, and the 6 18 other person may be held liable for sanctions. 6 19 Sec. 5. Section 56.3A, Code 1995, is amended to read as 6 20 follows: 6 21 56.3A FUNDS FROM UNKNOWN SOURCE – ESCHEAT. 6 22 1. The expenditure of funds from an unknown or 6 23 unidentifiable source received by a candidate or committee is 6 24 prohibited.Such funds6 25 2. Funds received by a candidate or committee from an 6 26 unknown or unidentifiable source shall escheat to the state. 6 27 Any candidate or committee receiving such contributions shall 6 28 remit such contributions to the director of revenue and 6 29 finance for deposit in the general fund of the state. 6 30 3. Persons requested to make a contribution at a 6 31 fundraising event shall be advised that it is illegal to make 6 32 a contributionin excess of ten dollarsunless the person 6 33 making the contribution also provides the person's name and 6 34 address. 6 35 4. This section does not apply to contributions received 7 1 from group collections that are made in compliance with rules 7 2 established by the board. 7 3 Sec. 6. Section 56.5, subsection 2, paragraph a, Code 7 4 Supplement 1995, is amended to read as follows: 7 5 a. The name, purpose, mailing address, and telephone 7 6 number of the committee. 7 7 (1) The committee name shall not duplicate the name of 7 8 another committee organized under this section. 7 9 (2) For candidate's committees filing initial statements 7 10 of organization on or after July 1, 1995, the candidate's name 7 11 shall be contained within the committee name. 7 12 (3) Except for a political committee formed to support or 7 13 oppose approval of a judge standing for retention, the name of 7 14 a political committee shall not contain the name of a 7 15 candidate, a candidate for federal office, or of a current 7 16 federal, state, county, city, or school officeholder. 7 17 Sec. 7. Section 56.5, subsection 2, paragraph f, Code 7 18 Supplement 1995, is amended to read as follows: 7 19 f. (1)AIn the case of a candidate's committee, a signed 7 20 statement by thetreasurer of the committee and thecandidate,7 21in the case of a candidate's committee, which shall verify7 22 thatthey areverifies the following information: 7 23 (a) The candidate is aware of the requirement to file 7 24 disclosure reports if the committee, the committee officers, 7 25 the candidate, or both the committee officers and the 7 26 candidate,receivefor the purpose of supporting the candidate 7 27 for public office, experiences any of the following: 7 28 (i) Receives contributions in excess of five hundred 7 29 dollars in the aggregate, make. 7 30 (ii) Makes expenditures in excess of five hundred dollars 7 31 in the aggregate, or incur. 7 32 (iii) Incurs indebtedness in excess of five hundred 7 33 dollars in the aggregate in a calendar yearfor the purpose of7 34supporting or opposing any candidate for public office. 7 35 (b) The candidate has and will ensure that the committee 8 1 treasurer has been instructed as to the treasurer's 8 2 responsibilities under this chapter, but acknowledges that the 8 3 candidate remains personally liable for compliance with this 8 4 chapter. 8 5 (2) In the case of political committees,statements shall8 6be madea signed statement by thetreasurerchairperson of the 8 7 committeeand the chairpersonthat verifies the following 8 8 information: 8 9 (a) The chairperson is aware of the requirement to file 8 10 disclosure reports if the committee, for the purpose of 8 11 supporting or opposing any candidate for public office or any 8 12 ballot issue, experiences any of the following: 8 13 (i) Receives contributions in excess of five hundred 8 14 dollars in the aggregate. 8 15 (ii) Makes expenditures in excess of five hundred dollars 8 16 in the aggregate. 8 17 (iii) Incurs indebtedness in excess of five hundred 8 18 dollars in the aggregate in a calendar year. 8 19 (b) The chairperson has and will ensure that the committee 8 20 treasurer has been instructed as to the treasurer's 8 21 responsibilities under this chapter, but acknowledges that the 8 22 chairperson remains personally liable for compliance with this 8 23 chapter. 8 24 Sec. 8. section 56.6, subsection 1, paragraphs c and d, 8 25 Code Supplement 1995, are amended to read as follows: 8 26 c. A candidate's committee for a candidate for the general 8 27 assembly at a special election for which the governor is 8 28 required to give not less than forty days' notice under 8 29 section 69.14 shall file a report by the fourteenth day prior 8 30 to the special election which is current through the 8 31 nineteenth day prior to the special election. A candidate's 8 32 committee for a candidate for the general assembly at a 8 33 special election for which the governor is required to give 8 34 not less than eighteen days' notice under section 69.14 shall 8 35 file a report five days prior to the election, that shall be 9 1 current as of five days prior to the filing deadline. Any 9 2 report filed pursuant to this paragraph shall be timely filed, 9 3 or mailed bearing a United States postal service postmark 9 4 dated on or before the due date. 9 5 d.CommitteesThe following committees shall file their 9 6 first reports five days prior to any election in which the 9 7 ballot contains the name of the candidate or the local ballot 9 8 issue which the committee supports or opposes: 9 9 (1) A candidate's committee for municipal and school 9 10 elective officesand. 9 11 (2) A candidate's committee for a county elective office 9 12 at a special election. 9 13 (3) Political committees for local ballot issuesshall9 14file their first reports five days prior to any election in9 15which the name of the candidate or the local ballot issue9 16which they support or oppose appears on the printed ballot9 17and. 9 18 These committees shall file their next report on the first 9 19 day of the month following the final election in a calendar 9 20 year in which the candidate's name or the ballot issue appears 9 21 on the ballot.A committee supporting or opposing a candidate9 22for a municipal or school elective office or a local ballot9 23issueThese committees shallalsootherwise file disclosure 9 24 reports on the nineteenth day of January and October of each 9 25 year in which the candidate or ballot issue does not appear on 9 26 the ballot and on the nineteenth day of January, May, and July 9 27 of each year in which the candidate or ballot issue appears on 9 28 the ballot, until the committee dissolves.These reports9 29 However, a candidate's committee for a county elective office 9 30 at a special election shall file its regular disclosure 9 31 reports as provided in paragraph "a". 9 32 Any report filed pursuant to this lettered paragraph shall 9 33 be current to five days prior to the filing deadline andare9 34consideredshall be timely filed,ifor mailed bearing a 9 35 United States postal service postmark on or before the due 10 1 date. 10 2 Sec. 9. Section 56.6, subsection 3, Code Supplement 1995, 10 3 is amended to read as follows: 10 4 3. Each report under this section shall disclose: 10 5 a. The amount of cash on hand at the beginning of the 10 6 reporting period. 10 7 b. The name and mailing address of each person who has 10 8 made one or more contributions of money to the committee 10 9including the, together with the amount of the contribution. 10 10 All reports of proceeds from any fund-raising events shall 10 11 include this information, except for those proceeds reportable 10 12 under paragraph"f""e"of this subsection, when the aggregate10 13amount in a calendar year exceeds the amount specified in the10 14following schedule:10 15(1) For any candidate for school or township10 16office ........................................... $ 2510 17(2) For any candidate for city office ........ $ 2510 18(3) For any candidate for county office ...... $ 2510 19(4) For any candidate for the general10 20assembly ......................................... $ 2510 21(5) For any candidate for the Congress10 22of the United States ............................. $10010 23(6) For any candidate for statewide10 24office ........................................... $ 2510 25(7) For any committee of a national10 26political party .................................. $20010 27(8) For any state statutory political10 28committee ........................................ $20010 29(9) For any county statutory political10 30committee ........................................ $ 5010 31(10) For any other political committee .........$ 2510 32(11) For any ballot issue ..................... $ 2510 33c. The total amount of contributions made to the political10 34committee during the reporting period and not reported under10 35paragraph "b" of this subsection.and contributions received 11 1 and reported as group collections. 11 2d.c. The name and mailing address of each person who has 11 3 made one or more in-kind contributions to the committeewhen11 4the aggregate market value of the in-kind contribution in a11 5calendar year exceeds the amount specified in subsection 3,11 6paragraph "b", of this section. In-kind contributions shall 11 7 be designated on a separate schedule from schedules showing 11 8 contributions of money and shall identify the nature of the 11 9 contribution and provide its estimated fair market value. 11 10e.d. Each loan to any person or committeewithin the11 11calendar year in an aggregate amount in excess of those11 12amounts enumerated in the schedule in paragraph "b" of this11 13subsection, together with the name and mailing address of the 11 14 lender and endorsers, the date and amount of each loan 11 15 received, and the date and amount of each loan repayment. 11 16 Loans received and loan repayments shall be reported on a 11 17 separate schedule. 11 18f.e. The total amount of ticket sale proceeds from any 11 19 fund-raising event for which the per-person ticket price was 11 20 ten dollars or less. 11 21 f. Contributions and sales at fund-raising events which 11 22 involve the sale of a product acquired at less than market 11 23 value and soldfor an amount of money in excess of the amount11 24specified in paragraph "b" of this subsectionby the committee 11 25 shall be designated separately from in-kind and monetary 11 26 contributions and the report shall include the name and 11 27 address of the donor, a description of the product, the market 11 28 value of the product, the sales price of the product,andthe 11 29 name and address of the purchaser, and the total amount paid 11 30 by each purchaser. 11 31 g. The name and mailing address of each person to whom 11 32 disbursements or loan repayments have been made by the 11 33 committee from contributions during the reporting period and 11 34 the amount, purpose, and date of each disbursementexcept that11 35disbursements of less than five dollars may be shown as12 1miscellaneous disbursements so long as the aggregate12 2miscellaneous disbursements to any one person during a12 3calendar year do not exceed one hundred dollars. If 12 4 disbursements are made to a consultant, the consultant shall 12 5 provide the committee with a statement of disbursements made 12 6 by the consultant during the reporting period showing the name 12 7 and address of the recipient, amount, purpose, and date to the 12 8 same extent as if made by the candidate, which shall be 12 9 included in the report by the committee. 12 10 h. The amount and nature of debts and obligations owedin12 11excess of those amounts stated in the schedule in paragraph12 12"b" of this subsectionby the committee. Loans made to a 12 13 committee and reported under paragraph"b" of this subsection12 14 "d" shall not be considered a debt or obligation under this 12 15 paragraph. A loan made by a committee to any person shall be 12 16 considered a disbursement. 12 17i. If a person listed under paragraph "b", "d", "e", or12 18"f" as making a contribution or loan to or purchase from a12 19candidate's committee is related to the candidate within the12 20third degree of consanguinity or affinity, the existence of12 21that person's family relationship shall be indicated on the12 22report.12 23j.i. The name and mailing address of each person with 12 24 whom a candidate's committee has entered into a contract 12 25 during the reporting period for future or continuing 12 26 performance and the nature of the performance, period of 12 27 performance and total, anticipated compensation for 12 28 performance. For a report filed under subsection 1, paragraph 12 29 "b", this paragraph also requires the reporting of estimates 12 30 of performance which the candidate's committee reasonably 12 31 expects to contract for during the balance of the period 12 32 running until thirty days after the election. 12 33k.j. Other pertinent information required by this 12 34 chapter, by rules adopted pursuant to this chapter, or forms 12 35 approved by the board. 13 1 Sec. 10. Section 56.7, Code 1995, is amended to read as 13 2 follows: 13 3 56.7 REPORTS SIGNED. 13 4 1. A report or statement required to be filed by a 13 5treasurer of a politicalcommittee, a candidate, or by any13 6other person,shall be signedby the person filing the report.13 7 as follows: 13 8 a. In the case of a candidate's committee, the report 13 9 shall be signed by the candidate, attesting under penalty of 13 10 perjury that the report is accurate and correct to the best of 13 11 the candidate's knowledge, that all expenditures made by the 13 12 committee are permitted uses under sections 56.41 and 56.42, 13 13 and that the candidate acknowledges personal liability for any 13 14 violations of chapter 56. 13 15 b. In the case of a political committee, the report shall 13 16 be signed by the chairperson, attesting under penalty of 13 17 perjury that the report is accurate and correct to the best of 13 18 the chairperson's knowledge, that all expenditures made by the 13 19 committee are permitted uses under section 56.44, and that the 13 20 chairperson acknowledges personal liability for any violations 13 21 of chapter 56. 13 22 2. A copy of every report or statement shall be preserved 13 23 by the person filing it or the person's successor for at least 13 24threefive years following the filing of the report or 13 25 statement. 13 26 Sec. 11. Section 56.14, subsection 3, Code Supplement 13 27 1995, is amended to read as follows: 13 28 3. Yard signs shall not be placed on any property which 13 29 adjoins a city, county, or state roadway sooner than forty- 13 30 five days preceding a primary,orgeneral, or special election 13 31 and shall be removed within seven days after the primary,or13 32 general, or special election, in which the name of the 13 33 particular candidate or ballot issue described on the yard 13 34 sign appears on the ballot. Yard signs are subject to removal 13 35 by highway authorities as provided in section 319.13, or by 14 1 county or city law enforcement authorities in a manner 14 2 consistent with section 319.13. The placement or erection of 14 3 yard signs shall be exempt from the requirements of chapter 14 4 480. Notice may be provided to the chairperson of the 14 5 appropriate county central committee if the highway 14 6 authorities are unable to provide notice to the candidate, 14 7 candidate's committee, or political committee regarding the 14 8 yard sign. 14 9 Sec. 12. Section 56.14, subsection 5, Code Supplement 14 10 1995, is amended to read as follows: 14 11 5. This section shall not be construed to requirethe14 12inclusionan individual to disclose that individual's identity 14 13 or address on published material,of information which14 14discloses the identity or address of anyas long as the 14 15 individualwhois not a candidate, is acting independently, 14 16 andusinghas not expended more than five hundred dollars of 14 17 the individual's ownmodestresources in a calendar year in 14 18 order to publish or distribute the material. However, this 14 19 exception does not apply to text or graphics that are 14 20 transmitted to another computer by computer, via the internet, 14 21 or via other means. 14 22 Sec. 13. Section 56.15, subsection 4, unnumbered paragraph 14 23 1, Code Supplement 1995, is amended to read as follows: 14 24 The restrictions imposed by this section relative to 14 25 making, soliciting, or receiving contributions shall not apply 14 26 to a nonprofit corporation or organization which uses those 14 27 contributions to encourage registration of voters and 14 28 participation in the political process, or to publicize public 14 29 issues, or both, but does not use any part of those 14 30 contributions to endorse or oppose any candidate for public 14 31 office. A nonprofit corporation or organization may use 14 32 contributions solicited or received to support or oppose 14 33 ballot issues but the expenditures shall be disclosed by the 14 34 nonprofit corporation or organization in the manner provided 14 35 for a permanent organization temporarily engaged in a 15 1 political activity under section 56.6. The restrictions 15 2 imposed by this section relating to making, soliciting, or 15 3 receiving contributions shall not be construed to prohibit an 15 4 insurance company, savings and loan association, bank, credit 15 5 union, or corporation, whether for profit or not, from using 15 6 its own resources to encourage registration of voters and 15 7 participation in the political process, including 15 8 familiarization with candidates for public office, as long as 15 9 those resources are made equally available to all candidates. 15 10 Sec. 14. Section 56.42, subsection 1, Code Supplement 15 11 1995, is amended to read as follows: 15 12 1. In addition to the uses permitted under section 56.41, 15 13 a candidate's committee may only transfer campaign funds in 15 14 one or more of the following ways: 15 15 a. Contributions to charitable organizations. 15 16 b. Contributions to national, state, or local political 15 17 party central committees,orto partisan political committees 15 18 organized to represent persons within the boundaries of a 15 19 congressional district, or to committees representing a 15 20 nonparty political organization described in section 44.1. 15 21 c. Transfers to the treasurer of state for deposit in the 15 22 general fund of the state, or to the appropriate treasurer for 15 23 deposit in the general fund of a political subdivision of the 15 24 state. 15 25 d. Return of contributions to contributors on a pro rata 15 26 basis, except that any contributor who contributed five 15 27 dollars or less and any contributor to a group collection may 15 28 be excluded from the distribution. 15 29 e. Contributions to another candidate's committee when the 15 30 candidate for whom both committees are formed is the same 15 31 person. 15 32 Sec. 15. NEW SECTION. 56.44 POLITICAL COMMITTEES – 15 33 RESTRICTIONS ON USE – FUNDRAISING – PENALTIES. 15 34 1. A political committee shall designate its purpose on 15 35 its statement of organization as either in regard to candidate 16 1 elections or in regard to a ballot issue election. A 16 2 political committee may not be organized with the purpose of 16 3 being involved in both types of elections. A committee formed 16 4 with regard to candidate elections shall not make 16 5 contributions with regard to a ballot issue election, and a 16 6 committee formed with regard to a ballot issue shall not 16 7 contribute with regard to a candidate election. 16 8 2. a. A political committee and the officers of a 16 9 political committee shall use the funds of the committee only 16 10 for expenses consistent with and directly related to the 16 11 designated purposes of the committee, reasonable 16 12 administrative expenses, and contributions to candidates, in 16 13 the case of committees organized with regard to candidate 16 14 elections. Reasonable administrative expenses may include 16 15 payment of wages to administrative personnel, provided that 16 16 the wages are compensation for actual services rendered and 16 17 are at a rate comparable to community standard compensation 16 18 for persons providing similar services. 16 19 b. A political committee shall not use committee funds for 16 20 personal expenses or for the personal benefit of any person. 16 21 3. A political committee, other than a statutory political 16 22 committee, shall not engage in fundraising through telephone 16 23 solicitation except as authorized by rule, which shall be 16 24 adopted by the board. 16 25 4. If the board determines, after notice and hearing as 16 26 provided in sections 68B.32B and 68B.32C, that a political 16 27 committee other than a statutory political committee has 16 28 committed a violation of this section, the board may, in 16 29 addition to other sanctions provided under sections 56.16 and 16 30 68B.32D, order the committee to dissolve and bar its officers 16 31 from serving as officers of another political committee for a 16 32 period of up to three years. 16 33 Sec. 16. Section 68B.7, Code 1995, is amended to read as 16 34 follows: 16 35 68B.7 OTHER ACTIVITIES – TWO-YEAR BAN. 17 1 1. A person who has served as an official, state employee 17 2of a state agency, member of the general assembly, or 17 3 legislative employee shall not within a period of two years 17 4 after the termination of such service or employment,appeardo 17 5 any of the following: 17 6 a. Appear before the agencyor receive compensationwith 17 7 which the person served for any services rendered on behalf of 17 8 any person, firm, corporation, or association in relation to 17 9 any case, proceeding, or application with respect to which the 17 10 person was directly concerned and personally participated 17 11 during the period of service or employment. 17 12 b. Receive compensation for any services rendered on 17 13 behalf of any person, firm, corporation, or association in 17 14 relation to any case, proceeding, or application with respect 17 15 to which the person was directly concerned and personally 17 16 participated during the period of service or employment. 17 17 2. A person who has served as the head of or on a 17 18 commission or board of a regulatory agency or as a deputy 17 19 thereof,shall not, within a period of two years after the 17 20 termination of such serviceaccept, do any of the following: 17 21 a. Accept employment with that commission, board, or 17 22 agencyor receive. 17 23 b. Receive compensation for any services rendered on 17 24 behalf of any person, firm, corporation, or association in any 17 25 case, proceedings, or application before the department with 17 26 which the person so served wherein the person's compensation 17 27 is to be dependent or contingent upon any action by such 17 28 agency with respect to any license, contract, certificate, 17 29 ruling, decision, opinion, rate schedule, franchise, or other 17 30 benefit, or in promoting or opposing, directly or indirectly,17 31the passage of bills or resolutions before either house of the17 32general assembly. 17 33 Sec. 17. Section 68B.32A, subsection 3, Code Supplement 17 34 1995, is amended to read as follows: 17 35 3. Review the contents of all campaign finance disclosure 18 1 reports and statements filed with the board and promptly 18 2 advise each person or committee of errors found. 18 3 a. The board may verify information contained in the 18 4 reports with other parties to assure accurate disclosure. 18 5 Information may be sought from a third party after notice to 18 6 the committee which is the subject of the review. However, if 18 7 the chairperson of the board concludes that notification to 18 8 the committee would have the potential of jeopardizing the 18 9 validity of the information sought, prior notice to the 18 10 committee which is the subject of the review is not required. 18 11 The board may also verify information by requesting that a 18 12 candidate or committee produce copies of receipts, bills, 18 13 logbooks, or other memoranda of reimbursements of expenses to 18 14 a candidate for expenses incurred during a campaign. 18 15 b. For the purposes of obtaining verifying information, 18 16 the board may issue administrative subpoenas for the requested 18 17 information, which may be served upon the candidate, 18 18 committee, or third party by restricted certified mail or by 18 19 personal service as in civil actions. 18 20 c. The board, upon its own motion, may initiate action and 18 21 conduct a hearing relating to requirements under chapter 56. 18 22 d. The board may require a county commissioner of 18 23 elections to periodically file summary reports with the board. 18 24 Sec. 18. Section 68B.32A, Code Supplement 1995, is amended 18 25 by adding the following new subsections: 18 26 NEW SUBSECTION. 15. Establish fees to cover the costs 18 27 associated with creating, maintaining, and providing access to 18 28 an electronic database of campaign finance disclosure 18 29 information. Payments received for these costs shall be 18 30 considered repayment receipts as defined in section 8.2. 18 31 NEW SUBSECTION. 16. Adopt rules regarding the collection 18 32 and reporting of contributions received from group 18 33 collections. 18 34 Sec. 19. Section 68B.32B, subsections 2, 4, and 5, Code 18 35 1995, are amended to read as follows: 19 1 2. The board staff shall review the complaint to determine 19 2 if the complaint is sufficient as to form. 19 3 a. If the complaint is deficient as to form, the complaint 19 4 shall be returned to the complainant with a statement of the 19 5 deficiency and an explanation describing how the deficiency 19 6 may be cured. 19 7 b. If the complaint is sufficient as to form, the 19 8 complaint shall be referred to the board chairperson forlegal19 9 review. 19 10 4.Upon completion of legal review, the chairperson of the19 11board shall be advised whether, in the opinion of the legal19 12advisor,The board shall review the complaint and determine 19 13 whether the complaint states an allegation which is legally 19 14 sufficient. A legally sufficient allegation must allege all 19 15 of the following: 19 16 a. Facts that would establish a violation of a provision 19 17 of this chapter, chapter 56, or rules adopted by the board. 19 18 b. Facts that would establish that the conduct providing 19 19 the basis for the complaint occurred within three years of the 19 20 complaint. 19 21 c. Facts that would establish that the subject of the 19 22 complaint is a party subject to the jurisdiction of the board. 19 235. After receiving an evaluation of the legal sufficiency19 24of the complaint, the chairperson shall refer the complaint to19 25the board for a formal determination by the board of the legal19 26sufficiency of the allegations contained in the complaint.19 27 Sec. 20. EFFECTIVE DATE. Sections 1, 2, 3, 5, 9, and 14 19 28 take effect January 1, 1997. 19 29 EXPLANATION 19 30 Section 1 of the bill adds a new definition for donations 19 31 received from "group collections", which are obtained either 19 32 from a source such as a donation can in a group setting. The 19 33 definition restricts such anonymous donations to $10 or less 19 34 from each individual. The board is authorized, in section 18 19 35 of the bill, to adopt rules related to the collection and 20 1 reporting of such proceeds. This definition is utilized in 20 2 sections 2, 5, 9, and 14 of the bill, regarding the reporting 20 3 of funds received from such sources. 20 4 Section 1 also reorganizes and restates the definition of a 20 5 political committee. 20 6 Sections 3 and 9 of the bill delete provisions allowing a 20 7 committee treasurer the discretion not to record the detail of 20 8 miscellaneous disbursements of $5 or less. All expenditures 20 9 must now be recorded in detail. 20 10 Section 6 restricts the choice of names that may be used by 20 11 a political committee, prohibiting any political committee 20 12 from using the name of a candidate or officeholder, other than 20 13 one directed toward a judge standing for retention. 20 14 Section 20 provides for a delayed effective date of January 20 15 1, 1997, for these sections concerned with campaign reporting 20 16 requirements, which are explained above. 20 17 Section 7 of the bill provides that ultimate liability for 20 18 the accuracy and retention of the financial records rests with 20 19 the candidate (for a candidate's committee) or the chairperson 20 20 (for a political committee). These individuals must now make 20 21 a verified statement with the committee's organization 20 22 statement that acknowledges responsibility for complying with 20 23 the Code requirements. These individuals are also required to 20 24 sign and file the disclosure reports, according to changes 20 25 contained in section 10 of the bill. However, section 4 of 20 26 the bill contains a new subsection that allows a candidate or 20 27 chairperson who demonstrates that best efforts have been made 20 28 to comply with the Code requirements to be deemed to be in 20 29 compliance with the chapter. 20 30 Section 8 adds county office special elections to the list 20 31 of committees that must file reports at least five days prior 20 32 to an election, and addresses reports for certain special 20 33 elections for the general assembly, as well. Regular 20 34 disclosure rules apply for post-election filings by these 20 35 candidates' committees. 21 1 Section 9 changes the Code to remove the varying reporting 21 2 thresholds on disclosure statements according to the type of 21 3 candidate or ballot issue. All contributions other than group 21 4 collections and events where the ticket price is less than $10 21 5 would be subject to reporting requirements. The provision 21 6 requiring disclosure of familial relationships is also 21 7 deleted. 21 8 Section 11 of the bill adds special elections to the 21 9 regulations regarding display of yard signs. 21 10 Section 12 of the bill adds a $500 value limitation to the 21 11 section permitting an individual who is not running for office 21 12 to distribute published political material. However, this 21 13 exception to the "disclaimer" provision does not apply to 21 14 internet publications. Section 1 adds definitions of 21 15 "computer" and "internet". 21 16 Section 13 of the bill permits a corporation, insurance 21 17 company, or financial institution to conduct voter awareness 21 18 and registration programs without penalty, as long as any 21 19 resources directed toward candidates are made equally 21 20 available to all candidates. 21 21 Section 14 of the bill adds a provision permitting moneys 21 22 from dissolved committees to be donated to an additional 21 23 source, nonparty political organizations. 21 24 Section 15 of the bill adds a new section setting forth 21 25 certain restrictions on fundraising and use of funds by 21 26 political committees. 21 27 Sections 16 through 19 of the bill make changes to the 21 28 ethics chapter. Section 16 amends the lobbying restriction 21 29 for former state employees, making the restriction expressly 21 30 applicable to all state employees, not just agency employees. 21 31 Section 18 permits the board to charge fees for access to an 21 32 electronic database of campaign finance disclosure 21 33 information. Section 17 permits the board to verify 21 34 information with third parties, and to issue administrative 21 35 subpoenas in its investigations of campaign disclosure 22 1 requirements. Section 19 eliminates staff legal review of a 22 2 formal complaint filed with the board. 22 3 BACKGROUND STATEMENT 22 4 SUBMITTED BY THE AGENCY 22 5 Section 3, together with changes in sections 1, 5, 9, and 22 6 14, eliminates the need for a committee to keep two sets of 22 7 books, an internal set with a $10 contribution threshold and, 22 8 on the disclosure report, a $25 contribution threshold. Under 22 9 this amendment, all contributions would be disclosed, but a 22 10 provision is made for "pass-the-hat" and "can collection" 22 11 donations, where contributions of $10 or less could still be 22 12 accepted without detailed donor information. All expenditures 22 13 would likewise be shown and reported on the single record. 22 14 This is designed to assist volunteer treasurers, who have 22 15 experienced difficulty in determining which items should be 22 16 maintained on which records. An item in section 9 also 22 17 strikes the requirement to disclose a familial relationship, 22 18 as this information has not appeared to be relevant in 22 19 assessing campaign finance information. Section 20 provides 22 20 that the provisions of this bill which change reporting 22 21 thresholds shall not become effective until January 1, 1997, 22 22 to allow completion of this election cycle. 22 23 Section 6 provides that a political committee name cannot 22 24 contain the name of a candidate or officeholder. This will 22 25 avoid any appearance that a candidate has more than one 22 26 committee for the same office, which is prohibited, and will 22 27 eliminate the impression that a candidate or officeholder is 22 28 responsible for the activities of a committee which might 22 29 otherwise bear the candidate's or officeholder's name. 22 30 Section 6 also eliminates the need for the treasurer to "sign 22 31 off" on the statement of organization, since it is the 22 32 candidate or chairperson who is ultimately responsible for the 22 33 activities of the committee. This again is to reduce an onus 22 34 on treasurers who are often unpaid volunteers. 22 35 Section 8 imposes a filing deadline on candidates for 23 1 county office involved in a special election. Currently, 23 2 candidates for the general assembly and municipal and school 23 3 elective offices in a special election are compelled to file a 23 4 pre-election report. Candidates for county office in a 23 5 special election frequently never file a pre-election report 23 6 because the determination to hold the special election comes 23 7 after the regular quarterly filing deadlines, and the next 23 8 regularly scheduled report is not required until after the 23 9 special election. 23 10 Similar to the changes in section 6, section 10 makes it 23 11 the candidate's or chairperson's responsibility to "sign off" 23 12 on the accuracy and propriety of the committee's reports. It 23 13 is intended that the attested statement will allow greater 23 14 reliance on the contents of the report to allow the board to 23 15 focus on significant issues, rather than on verifying minute 23 16 information. Misstatements by a candidate or chairperson 23 17 would be subject to public challenge and to sanction if a 23 18 challenge is substantiated. 23 19 Section 11 corrects an omission to allow signs to be posted 23 20 within the normal time frames for a special election. 23 21 Section 13 clarifies the application of the restriction on 23 22 corporate activity to allow a corporation (and similar 23 23 restricted entities) to engage in voter education activities 23 24 in relation to a candidate election, as long as it is the 23 25 corporation's own resources which are being used, and all 23 26 candidates have the same opportunity to avail themselves of 23 27 the resources. 23 28 Section 14 adds a committee representing a nonparty 23 29 political organization to the list of permissible recipients 23 30 of funds from a candidate's committee. Currently the statute 23 31 does not explicitly permit candidates to transfer funds to a 23 32 "minority party" which does not meet the definition of a 23 33 "political party", but is a "nonparty political organization" 23 34 under chapter 44. 23 35 Section 15 is a new section specifying the appropriate and 24 1 inappropriate uses for a political committee's funds. 24 2 Currently there is no restriction, and there is no provision 24 3 that contributions to a political committee must be used for 24 4 political purposes at all. The intent of this section is to 24 5 reduce the ability of persons to create a political committee 24 6 for personal benefit or for fraud. 24 7 Section 16 makes editorial changes to the Code section, and 24 8 removes language regarding a ban on lobbying activity which is 24 9 inconsistent with the more recently enacted ban in section 24 10 68B.5. 24 11 Section 17 enhances the board's ability to obtain 24 12 information to verify disclosure reports in an economical 24 13 manner, by expressly permitting the board to subpoena the 24 14 records without requiring personal service of the subpoenas, 24 15 but rather allowing certified mail service. To permit 24 16 verification to occur without jeopardizing the integrity of 24 17 the request, provision is made that prior notice to the 24 18 candidate or committee is not required. 24 19 Section 18 allows the board to assess fees to persons 24 20 accessing the campaign finance disclosure computer database in 24 21 order to cover and recover costs associated in creating, 24 22 maintaining, and providing access to the database. 24 23 Section 19 streamlines the formal complaint review process, 24 24 by having initial substantive review by the board chair, and 24 25 with legal sufficiency determined solely by the board. 24 26 Concern has been expressed that the current three-step review, 24 27 with staff legal review preceding the chair's review, was 24 28 unnecessarily cumbersome, and may invest excessive discretion 24 29 in board staff. 24 30 LSB 3299DP 76 24 31 jls/jj/8.1
Text: HSB00675 Text: HSB00677 Text: HSB00600 - HSB00699 Text: HSB Index Bills and Amendments: General Index Bill History: General Index
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