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House File 654

Partial Bill History

Bill Text

PAG LIN
  1  1    Section 1.  Sections 2 through 19 of this Act are created
  1  2 as a new division of chapter 56.
  1  3    Sec. 2.  NEW SECTION.  56.50 LIMITATIONS ON CAMPAIGN
  1  4 EXPENDITURES.
  1  5    1.  For purposes of sections 56.50 through 56.66, a
  1  6 candidate for governor and a candidate for lieutenant
  1  7 governor, running together, shall be deemed to be a single
  1  8 candidate.  All expenditures made by and expenditures made on
  1  9 behalf of the candidate for lieutenant governor, that are
  1 10 approved by the candidate as provided under section 56.13,
  1 11 shall be considered to be expenditures by and approved
  1 12 expenditures on behalf of the candidate for governor.
  1 13    2.  Except as otherwise provided in subsection 7, in a year
  1 14 in which a general election is held for a state office sought
  1 15 by a candidate for that office, expenditures by the
  1 16 candidate's committee for that candidate and expenditures made
  1 17 on behalf of the candidate that are approved and imputed to a
  1 18 candidate under section 56.13 shall not be made in excess of
  1 19 the following limits:
  1 20    a.  For governor and lieutenant governor, running together,
  1 21 one million five hundred thousand dollars.
  1 22    b.  For attorney general, one hundred fifty thousand
  1 23 dollars.
  1 24    c.  For each of the offices of secretary of state, state
  1 25 treasurer, secretary of agriculture, and state auditor, one
  1 26 hundred thousand dollars.
  1 27    d.  For state senator, twenty-five thousand dollars.
  1 28    e.  For state representative, fifteen thousand dollars.
  1 29    3.  The limits prescribed in this section shall not apply
  1 30 to any expenditure made or approved under section 56.13, or
  1 31 any advance of credit incurred before January 1, 1999, unless
  1 32 the goods or services for which the expenditures were made or
  1 33 credit incurred are consumed or used after January 1, 1999.
  1 34 For purposes of this section, an expenditure shall be deemed
  1 35 to be made at the time that the action incurring the expense
  2  1 occurs, not at the time that payment for the expense is made.
  2  2    4.  The limits imposed under subsection 2 shall also apply
  2  3 to a contested race in a primary, but amounts expended in the
  2  4 primary election shall be calculated separately from and shall
  2  5 not count towards calculations relating to the limits
  2  6 specified for the general election.
  2  7    5.  In any year following a year in which a general or
  2  8 special election is held for a state office held or sought,
  2  9 the candidate's committee for a person who was a candidate for
  2 10 or is the holder of the office shall not make, nor shall the
  2 11 person approve under section 56.13, expenditures on behalf of
  2 12 the candidate or holder of the office in excess of twenty
  2 13 percent of the expenditure limits set forth in subsection 2.
  2 14    6.  a.  The expenditure limits imposed under this section
  2 15 apply only to candidates in a contested election for a state
  2 16 office who agree and whose opponents agree to be bound by the
  2 17 limits imposed by this section and section 56.51 by filing an
  2 18 agreement pursuant to section 56.63.  Candidates who agree to
  2 19 abide by the limits contained in this section shall, if they
  2 20 are otherwise eligible to receive a public subsidy, receive a
  2 21 public subsidy for their campaigns from the Iowa elections
  2 22 campaign fund as provided in section 56.59.
  2 23    b.  A candidate of a political party, as defined under
  2 24 section 43.2, or a candidate of a qualified nonparty political
  2 25 organization under chapter 44, who agrees to be bound by the
  2 26 limits specified under this section and who receives a public
  2 27 subsidy, but who has an opponent who is a member of a
  2 28 political party under section 43.2 or who is a candidate of a
  2 29 qualified nonparty political organization under chapter 44 and
  2 30 who does not agree to be bound by the limits imposed under
  2 31 this section and is otherwise eligible to receive a public
  2 32 subsidy, shall not be bound by the limits imposed under this
  2 33 section and shall remain eligible to receive a public subsidy.
  2 34    c.  A candidate shall clearly disclose, in the manner
  2 35 provided in section 56.14, on all campaign material, whether
  3  1 the material is in a written, audio, or visual format, whether
  3  2 the candidate has agreed to limit the receipt of contributions
  3  3 and expenditure of funds in the manner provided in this
  3  4 chapter.
  3  5    7.  For purposes of this division, "otherwise eligible to
  3  6 receive a public subsidy" means that a candidate meets the
  3  7 requirements of this section and sections 56.51, 56.61, and
  3  8 56.63, the candidate has agreed to participate in at least one
  3  9 public debate that is subject to the oversight of an impartial
  3 10 sponsor, and the candidate has filed an affidavit of matching
  3 11 funds under section 56.64.
  3 12    Sec. 3.  NEW SECTION.  56.51  CONTRIBUTIONS LIMITATIONS.
  3 13    1.  In addition to the requirements contained in section
  3 14 56.50, a candidate who is otherwise eligible to receive a
  3 15 public subsidy shall also meet the requirements contained in
  3 16 this section regarding receipt of contributions, as a
  3 17 condition of receiving those funds.
  3 18    2.  Candidates for the office of state representative or
  3 19 state senator shall meet the following limitations on receipt
  3 20 of contributions:
  3 21    a.  Contributions received from private individuals shall
  3 22 not exceed two hundred dollars per individual.
  3 23    b.  Seventy-five percent of the contributions received from
  3 24 private individuals shall be from individuals who reside
  3 25 within the district represented by the office sought.
  3 26    c.  Contributions received from family members of the
  3 27 candidate shall not exceed five hundred dollars per family
  3 28 member.
  3 29    d.  Contributions from the candidate's own personal funds
  3 30 shall not exceed one thousand dollars.
  3 31    3.  Candidates for any statewide elected office shall meet
  3 32 the following limitations on receipt of contributions:
  3 33    a.  Contributions received from private individuals shall
  3 34 not exceed five hundred dollars per individual.
  3 35    b.  Seventy-five percent of the contributions received from
  4  1 private individuals shall be from individuals who reside
  4  2 within the state.
  4  3    c.  Contributions received from family members of the
  4  4 candidate shall not exceed one thousand dollars per family
  4  5 member.
  4  6    d.  Contributions from the candidate's own personal funds
  4  7 shall not exceed fifteen thousand dollars.
  4  8    4.  The limitations contained in this section shall also
  4  9 apply to the matching funds amount required to be raised by a
  4 10 candidate under section 56.64.
  4 11    Sec. 4.  NEW SECTION.  56.52  MULTICANDIDATE POLITICAL
  4 12 PARTY EXPENDITURES.
  4 13    Notwithstanding any other provisions of this chapter, the
  4 14 following expenditures by a state statutory or county
  4 15 statutory political committee, a national political party, or
  4 16 a nonparty political organization shall not be considered
  4 17 contributions to or expenditures on behalf of any candidate
  4 18 for purposes of section 56.50 or 56.51, and shall not be
  4 19 allocated to any candidates pursuant to section 56.13:
  4 20    1.  Expenditures made on behalf of candidates of that party
  4 21 generally, that do not refer to any specific candidate in any
  4 22 advertisement published, posted, or broadcasted.
  4 23    2.  Expenditures made for the preparation, display,
  4 24 mailing, or other distribution of an official party sample
  4 25 ballot listing the names of three or more individuals whose
  4 26 names are to appear on the ballot.
  4 27    3.  Expenditures made for any telephone conversation
  4 28 including the names of three or more individuals whose names
  4 29 are to appear on the ballot.
  4 30    4.  Expenditures made for any political party fundraising
  4 31 effort on behalf of three or more candidates.
  4 32    5.  Expenditures made pursuant to section 56.13 which are
  4 33 not approved by a candidate.
  4 34    Sec. 5.  NEW SECTION.  56.53  ADJUSTMENT OF LIMITATIONS BY
  4 35 ANNUAL INFLATION FACTOR.
  5  1    The limitations on expenditures contained in section 56.50,
  5  2 subsection 2, shall be adjusted for general election years as
  5  3 provided in this section.  By June 1 of a year in which a
  5  4 general election is to be held, the board shall determine the
  5  5 amounts by which the limits established in section 56.50,
  5  6 subsection 2, are to be increased.  The amounts of the
  5  7 increases shall equal the percentage of change represented by
  5  8 the annual inflation factor, as defined under section 422.4,
  5  9 for the year immediately preceding the year in which the
  5 10 election is to be held minus the annual inflation factor for
  5 11 the year immediately preceding the year in which the last
  5 12 general election was held, multiplied by each of the limits
  5 13 established under section 56.50, subsection 2.  Any amounts
  5 14 established under this section shall be rounded up to the next
  5 15 highest whole dollar figure.  The board shall publish the
  5 16 products of the calculation of increases and the new limits
  5 17 represented by the addition of increases to the limits
  5 18 established under section 56.50, subsection 2, in the
  5 19 administrative bulletin.  The new limits as published in the
  5 20 administrative bulletin shall constitute the limits for the
  5 21 general election that is to be held that year.
  5 22    Sec. 6.  NEW SECTION.  56.54  PENALTY FOR EXCEEDING LIMITS.
  5 23    1.  If a candidate who has agreed to abide by the
  5 24 expenditure limits contained in section 56.50 makes
  5 25 expenditures, permits the person's candidate's committee to
  5 26 make expenditures, or approves expenditures pursuant to
  5 27 section 56.13, in excess of the limits imposed under section
  5 28 56.50, the board shall impose a civil penalty upon the
  5 29 candidate in an amount not to exceed four times the amount by
  5 30 which the expenditures exceed the limit.
  5 31    2.  If a candidate who has agreed to abide by the
  5 32 contributions limits contained in section 56.51 receives
  5 33 contributions or permits the person's candidate's committee to
  5 34 receive contributions, in excess of the limits imposed under
  5 35 section 56.51, the board shall impose a civil penalty upon the
  6  1 candidate in an amount equal to four times the amount by which
  6  2 the contributions 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 sections 56.50 and 56.51, the
  6  6 board shall make every effort, for a period of not less than
  6  7 fourteen days after making the finding, to resolve the matter
  6  8 by informal methods of dispute resolution.  Any agreement
  6  9 reached between the board and a candidate shall be a matter of
  6 10 public record.  Unless the terms of the agreement are
  6 11 violated, the agreement shall be a bar to any other civil
  6 12 proceeding under this section.
  6 13    4.  If the board is unable to resolve the matter
  6 14 informally, the board shall make a public finding of probable
  6 15 cause and may proceed as provided under sections 68B.32B and
  6 16 68B.32C or may refer the matter to the appropriate county
  6 17 attorney, or both.
  6 18    5.  Moneys collected by the board pursuant to this section
  6 19 shall be deposited in the Iowa elections campaign fund
  6 20 established in section 56.57.
  6 21    Sec. 7.  NEW SECTION.  56.55  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. 8.  NEW SECTION.  56.56  CIRCUMVENTION PROHIBITED.
  6 26    An attempt by an individual or association to circumvent
  6 27 sections 56.50 through 56.54 by redirecting funds through, or
  6 28 contributing funds on behalf of, another person is an
  6 29 aggravated misdemeanor.
  6 30    Sec. 9.  NEW SECTION.  56.57  IOWA ELECTIONS CAMPAIGN FUND.
  6 31    1.  An Iowa elections campaign fund is established within
  6 32 the office of the treasurer of state under the control of the
  6 33 board.  The fund shall consist of funds paid by persons as
  6 34 provided in sections 56.54 and 56.58.
  6 35    2.  A nonparty political organization under chapter 44
  7  1 which does not meet the criteria established for designation
  7  2 as a political party under section 43.2 qualifies for
  7  3 participation in the fund as provided in this division if all
  7  4 of the following criteria are met:
  7  5    a.  The organization files a petition for inclusion on the
  7  6 form by June 1 of the taxable year or, if the organization ran
  7  7 a candidate for statewide office, the office was the office of
  7  8 governor and lieutenant governor, secretary of state, auditor
  7  9 of state, treasurer of state, secretary of agriculture, or
  7 10 attorney general.
  7 11    b.  The secretary of state has certified to the director of
  7 12 revenue and finance and the treasurer of state that the
  7 13 organization is a qualified nonparty political organization.
  7 14 The secretary of state shall certify that a nonparty political
  7 15 organization is qualified, for purposes of inclusion on the
  7 16 income tax form as provided in this section, if the political
  7 17 organization meets all of the following requirements:
  7 18    (1)  Nominated and ran a candidate for a statewide office
  7 19 as provided in chapter 44.
  7 20    (2)  Held a convention or caucus in the last two years,
  7 21 adopted a state constitution, and elected state officers.
  7 22    (3)  Filed the certificate required under section 44.3
  7 23 relating to nomination of candidates at the convention or
  7 24 caucus.
  7 25    Sec. 10.  NEW SECTION.  56.58  DESIGNATION OF INCOME TAX
  7 26 PAYMENTS.
  7 27    1.  Every individual resident of Iowa who files an income
  7 28 tax return with the department of revenue and finance, and
  7 29 whose state income tax liability for any taxable year is five
  7 30 dollars or more, may designate on their original return that
  7 31 five dollars of that liability be paid into the Iowa elections
  7 32 campaign fund.  If a husband and wife file a joint return and
  7 33 their joint income tax liability is ten dollars or more, each
  7 34 spouse may designate that five dollars be paid into the fund.
  7 35 An individual shall not be allowed to designate more than five
  8  1 dollars in any year.
  8  2    2.  The director of revenue and finance shall provide, on
  8  3 the first page of the income tax form, a space for the
  8  4 individual to indicate a desire to allocate five dollars, or
  8  5 ten dollars in the case of a joint return, from the general
  8  6 fund of the state to finance the election campaigns of
  8  7 candidates as provided in this division.
  8  8    3.  The amounts designated by and collected from individual
  8  9 taxpayers are appropriated from the general fund.  The
  8 10 director of revenue and finance shall remit funds in an amount
  8 11 equal to ninety percent of the estimated receipts, as
  8 12 determined under section 56.62, on a quarterly basis to the
  8 13 treasurer of state who shall deposit the funds in the Iowa
  8 14 elections campaign fund.  By the beginning of the last
  8 15 calendar quarter of the calendar year, the director shall
  8 16 determine the difference, if any, between the estimated
  8 17 receipts and actual amounts necessary to make the payments
  8 18 required under this chapter and adjust payments during the
  8 19 last calendar quarter to reflect the difference.
  8 20    Sec. 11.  NEW SECTION.  56.59  ALLOCATION OF FUNDS TO
  8 21 CANDIDATES AND PARTIES.
  8 22    1.  In each calendar year the matching funds in the general
  8 23 account shall be allocated to candidates who are otherwise
  8 24 eligible to receive a public subsidy as provided under section
  8 25 56.50, subsection 7, on a dollar-for-dollar basis pursuant to
  8 26 a certification filed under section 56.64 in the following
  8 27 amounts:
  8 28    a.  Up to five hundred dollars for each of the following
  8 29 offices:  governor and lieutenant governor together, attorney
  8 30 general, secretary of state, auditor of state, secretary of
  8 31 agriculture, and treasurer of state.
  8 32    b.  Up to two hundred dollars for each of the following
  8 33 offices:  state senator and state representative.
  8 34    2.  In an election year, the money in the party account
  8 35 shall be allocated to each political party and qualified
  9  1 nonparty political organization according to the designations
  9  2 made by taxpayers on the income tax forms.
  9  3    3.  Notwithstanding section 8.33, money that is not
  9  4 distributed in any election year shall not revert to the
  9  5 general fund of the state.  Money refused by any candidate
  9  6 shall be deposited in the fund for later distribution.
  9  7 Interest earned on moneys in the fund shall be credited to the
  9  8 fund.
  9  9    Sec. 12.  NEW SECTION.  56.60  CERTIFICATION –
  9 10 DISTRIBUTION OF FUNDS.
  9 11    1.  The director of revenue and finance shall certify to
  9 12 the treasurer of state on September 15 of each calendar year,
  9 13 the amount of available funds in the fund.  In the event that,
  9 14 on the date of certification of available funds, less than
  9 15 ninety-eight percent of the tax returns have been processed,
  9 16 the director shall on December 7 certify to the board, which
  9 17 shall in turn certify to the treasurer of state within one
  9 18 week, the amount to be distributed under subsection 2.
  9 19    2.  Upon receipt of an affidavit of matching funds pursuant
  9 20 to section 56.64, the board shall forward the name, the office
  9 21 sought, and mailing address of the candidate's committee of
  9 22 the candidate named in the affidavit to the treasurer of
  9 23 state.  Within two weeks after receipt of the affidavit of
  9 24 matching funds, the treasurer of state shall distribute the
  9 25 appropriate amount to the candidate named in the affidavit,
  9 26 according to the allocations specified under section 56.59.
  9 27    3.  The board shall not use the information contained in
  9 28 any supplementary report of a candidate's committee made as
  9 29 provided in section 56.6, subsection 1, paragraph "b", for
  9 30 purposes of reducing the amount due that candidate from the
  9 31 general account.
  9 32    4.  For purposes of this section and section 56.59, a
  9 33 write-in candidate is a candidate only if the candidate meets
  9 34 the requirements contained in section 56.58, subsection 3,
  9 35 paragraph "b", and signs the agreement as provided in section
 10  1 56.63.
 10  2    Sec. 13.  NEW SECTION.  56.61  SPECIAL ELECTION SUBSIDY.
 10  3    1.  Each eligible candidate for a legislative office in a
 10  4 special election shall be eligible for a public subsidy equal
 10  5 to the amount available to a candidate for the same office
 10  6 during a general election.
 10  7    2.  If the date for filing nomination papers for the
 10  8 special election does not coincide with the filing period for
 10  9 the general election, a candidate who wishes to receive the
 10 10 public subsidy provided for in this section shall submit a
 10 11 signed agreement under section 56.63 to the board not later
 10 12 than the day after the candidate files the nomination papers
 10 13 for the office.  To receive a subsidy, the candidate shall
 10 14 meet the matching requirements contained in section 56.64,
 10 15 except that the dates in that section shall not apply to a
 10 16 special election in which the filing period does not coincide
 10 17 with the filing period for the general election.  To the
 10 18 extent feasible, the special election subsidy shall be
 10 19 distributed in the same manner as money is distributed to
 10 20 candidates in a general election.
 10 21    3.  The amount necessary to make the payment required by
 10 22 this section is appropriated from the general fund of the
 10 23 state to the treasurer of state.
 10 24    Sec. 14.  NEW SECTION.  56.62  CERTIFICATION OF NUMBER OF
 10 25 CANDIDATES.
 10 26    Before the first day of filing nomination papers specified
 10 27 under section 43.11, the board shall publish and forward to
 10 28 all filing officers the revised expenditure limits and amounts
 10 29 specified under section 56.59 for public subsidies, along with
 10 30 a copy of sections 56.50 and 56.51.  Within seven days after
 10 31 the last day specified under section 43.11 for the filing of
 10 32 nomination papers, the secretary of state shall certify to the
 10 33 board the name, address, office sought, and party affiliation
 10 34 of each candidate who has filed nomination papers.  The
 10 35 commissioner of elections of each county shall certify to the
 11  1 board the same information for each candidate who has filed
 11  2 nomination papers in that county.
 11  3    Sec. 15.  NEW SECTION.  56.63  PUBLIC SUBSIDY AGREEMENTS.
 11  4    1.  As a condition of receiving a public subsidy from the
 11  5 Iowa elections campaign fund, a candidate shall sign and file
 11  6 a written agreement with the board in which the candidate
 11  7 agrees that the candidate will comply with sections 56.50,
 11  8 56.51, 56.64, and 56.65.
 11  9    2.  Before the first day specified under section 43.11 for
 11 10 the filing of nomination papers, the board shall forward
 11 11 agreement forms to the state commissioner and all county
 11 12 commissioners of elections.  The board shall also provide
 11 13 agreement forms to candidates on request at any time.  The
 11 14 candidate may sign an agreement and submit it along with the
 11 15 nomination papers to the commissioner.  The commissioner shall
 11 16 promptly forward the agreement to the board.  The candidate
 11 17 may also submit the agreement directly to the board at any
 11 18 time before September 1 of the year in which the general
 11 19 election is to be held.  Except as otherwise provided, an
 11 20 agreement shall not be signed or rescinded after September 1
 11 21 of a year in which a general election is to be held.
 11 22    3.  If a vacancy occurs that will be filled by means of a
 11 23 special election and the filing period does not coincide with
 11 24 the filing period for the general election, a candidate may
 11 25 sign and submit a spending limit agreement at any time before
 11 26 the deadline for certification of candidacy under section
 11 27 43.88.
 11 28    4.  The board shall forward a copy of any agreement signed
 11 29 by a candidate under this section to the director of revenue
 11 30 and finance.
 11 31    5.  The expenditure limits portion of the public subsidy
 11 32 agreement, as modified by any adjustments in the applicable
 11 33 limits under section 56.53, that is executed by a candidate
 11 34 remains in effect for the candidate until the dissolution of
 11 35 the person's candidate's committee or the first day that
 12  1 nomination papers may be filed for the next succeeding
 12  2 election to the office held or sought at the time of the
 12  3 agreement, whichever occurs first.
 12  4    Sec. 16.  NEW SECTION.  56.64  MATCHING FUNDS
 12  5 CERTIFICATION.
 12  6    In addition to the requirements of section 56.58,
 12  7 subsection 3, paragraph "b", and section 56.63, to be eligible
 12  8 to receive a public subsidy from the Iowa elections campaign
 12  9 fund, a candidate shall file an affidavit with the board
 12 10 stating that the candidate has accumulated contributions equal
 12 11 to fifteen percent or more of the expenditure limit for the
 12 12 particular state office.  The candidate or the candidate's
 12 13 treasurer shall submit the affidavit required by this section
 12 14 to the board in writing by October 1 of a general election
 12 15 year.  Upon receipt of the affidavit of matching funds the
 12 16 board shall forward a copy of the affidavit to the treasurer
 12 17 of state.
 12 18    Sec. 17.  NEW SECTION.  56.65  RETURN OF PUBLIC SUBSIDY.
 12 19    1.  A candidate shall return all or a portion of the public
 12 20 subsidy received from the Iowa elections campaign fund under
 12 21 any of the following circumstances:
 12 22    a.  To the extent that use of the amount of the public
 12 23 subsidy received by the candidate for expenditures would cause
 12 24 the candidate to exceed the expenditure limits for the office
 12 25 held or sought, as determined under section 56.50, the
 12 26 treasurer of the candidate's committee shall return the excess
 12 27 to the board.
 12 28    b.  To the extent that the amount of public subsidy
 12 29 received exceeds the aggregate of actual expenditures made by
 12 30 the candidate's committee of a candidate and the expenditures
 12 31 made on behalf of the candidate and approved by the candidate
 12 32 under section 56.13, the treasurer of the candidate's
 12 33 committee shall return an amount equal to the difference to
 12 34 the board.
 12 35    Any amount required to be returned shall not exceed the
 13  1 amount of the public subsidy received by the candidate from
 13  2 the Iowa elections campaign fund.
 13  3    2.  Money in the account of a candidate's committee on
 13  4 January 1 of the election year for the office held or sought
 13  5 shall be considered to be contributions accepted by that
 13  6 candidate in that year for the purposes of the expenditure
 13  7 limits set forth in section 56.50.  The portion of
 13  8 contributions accepted by a candidate in an election year
 13  9 which is a noncampaign disbursement and contributions and
 13 10 expenditures to promote or defeat a ballot issue that are made
 13 11 by the candidate in that year shall not count toward the
 13 12 aggregate contributions and approved expenditure limit imposed
 13 13 under this section.  For purposes of this section, a transfer
 13 14 from one candidate's committee to a political party shall be
 13 15 considered a noncampaign disbursement.
 13 16    3.  Each candidate shall determine if the candidate is
 13 17 required to return all or a portion of the public subsidy
 13 18 received from the Iowa elections campaign fund.  Any amount
 13 19 required to be returned shall be submitted in the form of a
 13 20 check or money order and must accompany the report filed by
 13 21 the candidate on January 31 of the year immediately succeeding
 13 22 the year in which the election is held.  The board shall
 13 23 forward the check or money order to the treasurer of state for
 13 24 deposit in the general fund of the state.
 13 25    4.  A candidate whose campaign spending is unlimited under
 13 26 section 56.50, subsection 7, and who certifies that the
 13 27 candidate made campaign expenditures equal to the full amount
 13 28 of the public financing received, is not required to return
 13 29 any portion of the money received from the Iowa elections
 13 30 campaign fund under subsection 1, paragraph "b".
 13 31    Sec. 18.  NEW SECTION.  56.66  REMEDIES.
 13 32    1.  In addition to any other remedy provided by law, a
 13 33 person charged with a duty under sections 56.63 through 56.65
 13 34 shall be personally liable for any penalty imposed by the
 13 35 board for failing to discharge the duty.
 14  1    2.  The board may commence an action in district court in
 14  2 Polk county to enforce any order to pay any fee or penalty
 14  3 imposed pursuant to this chapter.  The board or a county
 14  4 attorney may seek an injunction in the district court to
 14  5 enforce the provisions of sections 56.63 through 56.65.
 14  6    3.  Unless otherwise specifically provided, a violation of
 14  7 sections 56.63 through 56.65 is not a public offense.
 14  8    Sec. 19.  NEW SECTION.  56.67  UNRESTRICTED CAMPAIGNS –
 14  9 NOMINATION PETITION – DISCLOSURE REPORTS.
 14 10    1.  As used in this section, "restricted campaign" means a
 14 11 campaign for a state office in which there are two or more
 14 12 candidates with qualifying nominations and all of those
 14 13 candidates have agreed to limit campaign expenditures and
 14 14 contributions pursuant to sections 56.50 through 56.66.
 14 15    2.  Notwithstanding section 43.20, the nomination petition
 14 16 of a candidate who does not agree to a restricted campaign
 14 17 must contain signatures of at least twenty percent of the
 14 18 total number of votes cast in the last general election for
 14 19 that office.  A candidate nominated pursuant to section 43.66
 14 20 who does not agree to a restricted campaign must file a
 14 21 nomination petition within fifteen days of nomination
 14 22 containing signatures of at least twenty percent of the total
 14 23 number of votes cast in the last general election for that
 14 24 office in order to be placed on the general election ballot.
 14 25 A candidate who agrees to a restricted campaign and whose
 14 26 opponent does not agree to a restricted campaign is not
 14 27 required to obtain signatures under this section and is not
 14 28 subject to the limitations on campaign expenditures or
 14 29 contributions imposed in this division, but shall be
 14 30 considered as a candidate who agreed to a restricted campaign.
 14 31    3.  Notwithstanding the dates required for filing
 14 32 disclosure reports pursuant to section 56.6, a candidate who
 14 33 does not agree to a restricted campaign pursuant to this
 14 34 section shall file a disclosure report each month until June
 14 35 30 of the year of the election.  Beginning July 1 of the year
 15  1 of the election, the candidate shall file a disclosure report
 15  2 every fourteen days until the date of the general election.
 15  3 After the date of election, the candidate shall file a
 15  4 disclosure report each month until the candidate files
 15  5 nomination papers for the same or another public office, or
 15  6 closes the candidate's campaign account.
 15  7    Sec. 20.  Section 56.13, subsection 1, unnumbered paragraph
 15  8 1, Code 1997, is amended to read as follows:
 15  9    Action involving a contribution or expenditure which must
 15 10 be reported under this chapter and which is taken by any
 15 11 person, candidate's committee, or political committee on
 15 12 behalf of a candidate, if known and approved by the candidate,
 15 13 shall be deemed action by the candidate and reported by the
 15 14 candidate's committee.  If a candidate has signed an agreement
 15 15 to limit the candidate's expenditures and receipt of
 15 16 contributions pursuant to section 56.63, the action involving
 15 17 an expenditure or contribution which must be reported under
 15 18 this chapter which is taken by any person, candidate's
 15 19 committee, or political committee on behalf of a candidate, if
 15 20 known and approved by the candidate, shall be deemed action by
 15 21 the candidate, shall be reported by the candidate's committee,
 15 22 and shall be credited against the candidate's expenditure or
 15 23 contribution limits pursuant to section 56.50 or 56.51.  It
 15 24 shall be presumed that a candidate approves the action if the
 15 25 candidate had knowledge of it and failed to file a statement
 15 26 of disavowal with the commissioner or board and take
 15 27 corrective action within seventy-two hours of the action.  A
 15 28 person, candidate's committee, or political committee taking
 15 29 such action independently of that candidate's committee shall
 15 30 notify that candidate's committee in writing within twenty-
 15 31 four hours of taking the action.  The notification shall
 15 32 provide that candidate's committee with the cost of the
 15 33 promotion at fair market value.  Failure to file a notice
 15 34 required under this section, if a candidate has signed an
 15 35 agreement under section 56.63, shall result in a fine of up to
 16  1 four times the amount of the expenditure.  A copy of the
 16  2 notification shall be sent to the board.  If a candidate files
 16  3 a statement of disavowal, but the board finds that the
 16  4 candidate benefits from the expenditure, the board shall
 16  5 credit the expenditure at its fair market value against the
 16  6 candidate's expenditure or contribution limits.  The board may
 16  7 also authorize an increase in the candidate's opponent's
 16  8 expenditure or contribution limits in an amount equal to the
 16  9 fair market value of the disavowed expenditure.
 16 10    Sec. 21.  Section 56.14, subsection 1, paragraph a, Code
 16 11 1995, is amended by adding the following new unnumbered
 16 12 paragraph:
 16 13    NEW UNNUMBERED PARAGRAPH.  In addition to the
 16 14 identification required in this section, the candidate's
 16 15 committee of each candidate shall include on all published
 16 16 material, a statement, equal in size to the identification
 16 17 information, whether the candidate has agreed to abide by the
 16 18 limits imposed under sections 56.50 and 56.51.  A similar
 16 19 statement shall also be included, vocally, in all radio and
 16 20 television commercials purchased on behalf of the candidate.
 16 21 Candidates who have signed an agreement to limit their
 16 22 campaign expenditures and contributions shall state the
 16 23 following:  "(name of candidate) agreed to limit campaign
 16 24 spending and receipt of contributions." Candidates who refused
 16 25 to sign an agreement to limit their campaign expenditures and
 16 26 contributions shall state the following:  "(name of candidate)
 16 27 refused to agree to limit campaign spending and receipt of
 16 28 contributions."  The information required under this paragraph
 16 29 may be included on materials and commercials used by a
 16 30 candidate's opponent.
 16 31    Sec. 22.  Section 236.15A, unnumbered paragraph 5, Code
 16 32 1997, is amended to read as follows:
 16 33    The department of revenue and finance shall consult the
 16 34 crime victim assistance board concerning the adoption of rules
 16 35 to implement this section.  However, before a checkoff
 17  1 pursuant to this section shall be permitted, all liabilities
 17  2 on the books of the department of revenue and finance and
 17  3 accounts identified as owing under section 421.17 and the
 17  4 political contribution allowed under section 56.18 56.58 shall
 17  5 be satisfied.
 17  6    Sec. 23.  Section 422.5, subsection 1, paragraph j,
 17  7 subparagraph (2), subparagraph subdivision (b), Code 1997, is
 17  8 amended to read as follows:
 17  9    (b)  This subparagraph shall not affect the amount of the
 17 10 taxpayer's checkoff to the Iowa election campaign fund under
 17 11 section 56.18 56.58, the checkoff for the fish and game fund
 17 12 in section 456A.16, the credits from tax provided in sections
 17 13 422.10, 422.11A, and 422.12 and the allocation of these
 17 14 credits between spouses if the taxpayers filed separate
 17 15 returns or separately on combined returns.
 17 16    Sec. 24.  Section 422.12D, subsection 4, Code 1997, is
 17 17 amended to read as follows:
 17 18    4.  The department shall adopt rules to implement this
 17 19 section.  However, before a checkoff pursuant to this section
 17 20 shall be permitted, all liabilities on the books of the
 17 21 department of revenue and finance and accounts identified as
 17 22 owing under section 421.17 and the political contribution
 17 23 allowed under section 56.18 56.58 shall be satisfied.
 17 24    Sec. 25.  Section 422.12E, Code 1997, is amended to read as
 17 25 follows:
 17 26    422.12E  INCOME TAX RETURN CHECKOFFS LIMITED.
 17 27    For tax years beginning on or after January 1, 1995 1997,
 17 28 there shall be allowed no more than three income tax return
 17 29 checkoffs on each income tax return.  When the same three
 17 30 income tax return checkoffs have been provided on the income
 17 31 tax return for three consecutive years, the checkoff for which
 17 32 the least amount has been contributed, in the aggregate for
 17 33 the first two tax years and through March 15 of the third tax
 17 34 year, shall be repealed.  This section does not apply to the
 17 35 income tax return checkoff provided in section 56.18 56.58.
 18  1    Sec. 26.  Section 456A.16, unnumbered paragraph 7, Code
 18  2 1997, is amended to read as follows:
 18  3    The department shall adopt rules to implement this section.
 18  4 However, before a checkoff pursuant to this section shall be
 18  5 permitted, all liabilities on the books of the department of
 18  6 revenue and finance and accounts identified as owing under
 18  7 section 421.17 and the political contribution allowed under
 18  8 section 56.18 56.58 shall be satisfied.
 18  9    Sec. 27.  Sections 56.18, 56.19, 56.20, 56.21, 56.22,
 18 10 56.23, 56.24, 56.25, and 56.26, Code 1997, are repealed.
 18 11    Sec. 28.  On the effective date of this Act, unencumbered
 18 12 and unexpended funds contained in the party accounts in the
 18 13 Iowa election campaign fund under section 56.19 shall be
 18 14 transferred to the Iowa elections campaign fund established
 18 15 under section 56.57.
 18 16    Sec. 29.  Sections 1 through 9 and sections 11 through 26
 18 17 of this Act take effect January 1, 1999.
 18 18    Sec. 30.  Section 10 of this Act applies retroactively to
 18 19 January 1, 1997, for tax years beginning on or after that
 18 20 date.  
 18 21                           EXPLANATION
 18 22    This bill establishes expenditure and contribution limits
 18 23 for candidates for state office who agree to abide by the
 18 24 limits, provides for publicly subsidized matching funds for
 18 25 any candidate who agrees to the limits, and provides certain
 18 26 requirements for any candidate who does not agree to the
 18 27 limits.
 18 28    Code section 56.50 establishes expenditure limits for each
 18 29 state elective office.  The limits are applicable separately
 18 30 to the general and primary elections, and amounts expended
 18 31 during a primary do not count towards the limits for the
 18 32 general election.
 18 33    Code section 56.51 establishes contribution limits.  The
 18 34 limitations on contributions also apply to the threshold
 18 35 amount that must be raised before a candidate who agrees to
 19  1 restrict expenditures and contributions can receive a matching
 19  2 funds public subsidy.
 19  3    Code section 56.52 provides that expenditures made by a
 19  4 political party or nonparty political organization do not
 19  5 count towards the contribution or expenditure limits if they
 19  6 are made on behalf of all candidates of the party generally or
 19  7 are made as an independent expenditure under Code section
 19  8 56.13.
 19  9    Code section 56.54 provides for civil penalties in amounts
 19 10 equal to up to four times the amount by which any candidate
 19 11 exceeds the limits on expenditures or contributions.  The
 19 12 section also provides for informal settlement of violations a
 19 13 candidate.  Code section 56.56 provides penalties for
 19 14 circumventing an agreement to limit campaign expenditures and
 19 15 contributions by redirecting funds through another person.
 19 16    Code section 56.55 provides that chapter 56 is not to be
 19 17 construed to abridge the right of an association to
 19 18 communicate with its members.
 19 19    Code sections 56.57 and 56.58 establish and provide the
 19 20 mechanism for deposit of funds into the Iowa elections
 19 21 campaign fund.  The fund is funded through an income tax
 19 22 checkoff from taxpayers' tax liabilities and provides for the
 19 23 moneys to be given to major and certain minor political
 19 24 parties.
 19 25    Code section 56.59 sets out the amounts to be allocated to
 19 26 candidates and political parties who are eligible to receive
 19 27 funds.  Code sections 56.60 and 56.62 establish a
 19 28 certification process related to the distribution of funds and
 19 29 indicates when the funds will be paid.  Code section 56.61
 19 30 indicates that the expenditure, contribution, and public
 19 31 subsidy provisions may also apply in a somewhat modified form
 19 32 to a special election.
 19 33    Code section 56.63 describes the agreements that are to be
 19 34 signed by candidates who agree to expenditure and contribution
 19 35 limits and indicates that the agreements may be filed with the
 20  1 candidate's committee's statement of organization, but no
 20  2 later than September 1 of a general election year.  Code
 20  3 section 56.64 provides for a certification of matching funds
 20  4 by a candidate, which triggers payment of matching funds to a
 20  5 candidate.  Code section 56.65 provides for return of portions
 20  6 of the public subsidy if the receipt of the moneys causes a
 20  7 candidate to exceed applicable limitations.
 20  8    Code section 56.66 provides that persons who have a duty
 20  9 with respect to agreements to abide by limitations are to be
 20 10 personally liable for failure to discharge those duties.
 20 11    Code section 56.67 provides requirements for candidates who
 20 12 do not agree to and do not abide by the contribution and
 20 13 expenditure limitations.  The bill also contains provisions
 20 14 regarding disclosures that must be contained on campaign
 20 15 materials that are made by or on behalf of a candidate and
 20 16 provides for attribution of independent expenditures to a
 20 17 candidate.
 20 18    The bill makes conforming amendments needed as a result of
 20 19 changes to the Iowa elections campaign fund.
 20 20    Except for the provisions establishing the fund and the
 20 21 income tax checkoff, the bill takes effect in 1999.  The
 20 22 checkoff will apply to the taxable year beginning January 1,
 20 23 1997.  Money will accumulate in the fund for use beginning in
 20 24 1999.  
 20 25 LSB 2258YH 77
 20 26 jls/cf/24
     

Text: HF00653                           Text: HF00655
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