House File 2513 - Introduced



                                   HOUSE FILE       
                                   BY  COMMITTEE ON STATE GOVERNMENT

                                   (SUCCESSOR TO HSB 535)


    Passed House, Date               Passed Senate,  Date             
    Vote:  Ayes        Nays           Vote:  Ayes        Nays         
                 Approved                            

                                      A BILL FOR

  1 An Act relating to campaign funding and reporting.
  2 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
  3 TLSB 5370HV 81
  4 jr/sh/8

PAG LIN



  1  1    Section 1.  Section 68A.102, subsection 10, paragraph b,
  1  2 Code Supplement 2005, is amended to read as follows:
  1  3    b.  The payment, by any person other than a candidate or
  1  4 political committee, of compensation for the personal services
  1  5 of another person which are rendered to a candidate or
  1  6 political committee for any such purpose.
  1  7    "Contribution" shall not include services provided without
  1  8 compensation by individuals volunteering their time on behalf
  1  9 of a candidate's committee or political committee or a state
  1 10 or county statutory political committee except when organized
  1 11 or provided on a collective basis by a business, trade
  1 12 association, labor union, or any other organized group or
  1 13 association.  "Contribution" shall not include refreshments
  1 14 served at a campaign function so long as such refreshments do
  1 15 not exceed fifty dollars in value or transportation provided
  1 16 to a candidate so long as its value computed at a rate of
  1 17 twenty cents per mile does not exceed one hundred dollars in
  1 18 value in any one reporting period the current rate of
  1 19 reimbursement allowed under the standard mileage rate method
  1 20 for computation of business expenses pursuant to the Internal
  1 21 Revenue Code does not exceed one hundred dollars in any one
  1 22 reporting period.  "Contribution" shall not include something
  1 23 provided to a candidate for the candidate's personal
  1 24 consumption or use and not intended for or on behalf of the
  1 25 candidate's committee.
  1 26    Sec. 2.  Section 68A.201, subsection 1, Code 2005, is
  1 27 amended to read as follows:
  1 28    1.  Every committee, as defined in this chapter, shall file
  1 29 a statement of organization within ten days from the date of
  1 30 its organization.  Unless formal organization has previously
  1 31 occurred, a committee is deemed to have organized as of the
  1 32 date that committee transactions exceed the financial activity
  1 33 threshold established in section 68A.102, subsection 5 or 18.
  1 34 If a committee's transactions exceed the financial activity
  1 35 threshold prior to the due date for filing a disclosure report
  2  1 as established under section 68A.402, the committee shall file
  2  2 a disclosure report regardless of whether or not a statement
  2  3 of organization has been filed by the committee.
  2  4    Sec. 3.  Section 68A.201, subsection 5, Code 2005, is
  2  5 amended to read as follows:
  2  6    5.  a.  When either a committee or organization not
  2  7 organized as a committee under this section makes a
  2  8 contribution to a committee organized in Iowa, that committee
  2  9 or organization shall disclose each contribution in excess of
  2 10 fifty dollars to the board.
  2 11    b.  A committee or organization not organized as a
  2 12 committee under this section which that is not registered and
  2 13 filing full disclosure reports of all financial activities
  2 14 with the federal election commission or another state's
  2 15 disclosure commission shall register and file full disclosure
  2 16 reports with the board pursuant to this chapter, and.  The
  2 17 committee or organization shall either appoint an eligible
  2 18 Iowa elector as committee or organization treasurer, or shall
  2 19 maintain all committee funds in an account in a financial
  2 20 institution located in Iowa.
  2 21    c.  A committee which that is currently filing a disclosure
  2 22 report in another jurisdiction shall either file a statement
  2 23 of organization under subsections 1 and 2 and file disclosure
  2 24 reports, the same as those required of committees organized
  2 25 only in Iowa, under section 68A.402, or shall file one copy of
  2 26 a verified statement with the board and a second copy with the
  2 27 treasurer of the committee receiving the contribution.  The
  2 28 form shall be completed and filed at the time the contribution
  2 29 is made.
  2 30    d.  The verified statement shall be on forms prescribed by
  2 31 the board and shall attest that the committee is filing
  2 32 reports with the federal election commission or in a
  2 33 jurisdiction with reporting requirements which are
  2 34 substantially similar to those of this chapter, and that the
  2 35 contribution is made from an account which that does not
  3  1 accept contributions which that would be in violation of
  3  2 section 68A.503.
  3  3    e.  The verified statement form shall include the complete
  3  4 name, address, and telephone number of the contributing
  3  5 committee, the state or federal jurisdiction under which it is
  3  6 registered or operates, the identification of any parent
  3  7 entity or other affiliates or sponsors, its purpose, the name
  3  8 and address of an Iowa resident authorized to receive service
  3  9 of original notice, and the name and address of the receiving
  3 10 committee, the amount of the cash or in=kind contribution, and
  3 11 the date the contribution was made.
  3 12    Sec. 4.  Section 68A.203, subsection 2, Code Supplement
  3 13 2005, is amended to read as follows:
  3 14    2.  a.  An individual who receives contributions for a
  3 15 committee without the prior authorization of the chairperson
  3 16 of the committee or the candidate shall be responsible for
  3 17 either rendering the contributions to the treasurer within
  3 18 fifteen days of the date of receipt of the contributions, or
  3 19 depositing the contributions in the account maintained by the
  3 20 committee within seven days of the date of receipt of the
  3 21 contributions.
  3 22    b.  A person, other than a candidate or committee officer,
  3 23 who receives contributions for a committee shall, not later
  3 24 than fifteen days from the date of receipt of the
  3 25 contributions or on demand of the treasurer, render to the
  3 26 treasurer the contributions and an account of the total of all
  3 27 contributions, including the name and address of each person
  3 28 making a contribution in excess of ten dollars, the amount of
  3 29 the contributions, and the date on which the contributions
  3 30 were received.
  3 31    c.  The treasurer shall deposit all contributions within
  3 32 seven days of receipt by the treasurer in an account
  3 33 maintained by the committee.
  3 34    d.  All funds of a committee shall be segregated from any
  3 35 other funds held by officers, members, or associates of the
  4  1 committee or the committee's candidate.  However, if a
  4  2 candidate's committee receives contributions only from the
  4  3 candidate, or if a permanent organization temporarily engages
  4  4 in activity which that qualifies it as a political committee
  4  5 and all expenditures of the organization are made from
  4  6 existing general operating funds and funds are not solicited
  4  7 or received for this purpose from sources other than operating
  4  8 funds, then that committee is not required to maintain a
  4  9 separate account in a financial institution.
  4 10    e.  Committee funds or committee property shall not be used
  4 11 for the personal benefit of an a candidate, officer, member,
  4 12 or associate of the committee.  The funds of a committee are
  4 13 not attachable for the personal debt of the committee's
  4 14 candidate or an officer, member, or associate of the
  4 15 committee.
  4 16    Sec. 5.  Section 68A.401, subsection 3, Code 2005, is
  4 17 amended by striking the subsection.
  4 18    Sec. 6.  Section 68A.402, subsection 8, Code Supplement
  4 19 2005, is amended to read as follows:
  4 20    8.  POLITICAL COMMITTEES == BALLOT ISSUES.  A political
  4 21 committee expressly advocating the passage or defeat of a
  4 22 ballot issue shall file reports as follows:
  4 23    a.  ELECTION YEAR.  Five days before the election covering
  4 24 the period of the date of initial activity through ten days
  4 25 before election.  Another report covering the time period from
  4 26 nine days before the election through December 31 shall be
  4 27 filed on or before January 19 of the next calendar year.
  4 28    b.  NONELECTION YEAR.  On January 19 of the next calendar
  4 29 year that covers the time period of nine days before the
  4 30 election January 1 through December 31 of the previous
  4 31 calendar year.
  4 32    Sec. 7.  Section 68A.406, subsection 2, paragraph a, Code
  4 33 Supplement 2005, is amended to read as follows:
  4 34    a.  Any property owned by the state or the governing body
  4 35 of a county, city, or other political subdivision of the
  5  1 state, including all property considered the public right=of=
  5  2 way.  Upon a determination by the board that a sign has been
  5  3 improperly placed, the sign shall be removed by highway
  5  4 authorities as provided in section 319.13, or by county or
  5  5 city law enforcement authorities in a manner consistent with
  5  6 section 319.13.  If the board determines a campaign sign is
  5  7 improperly placed, the board shall notify the person who paid
  5  8 for or placed the sign and the person shall remove the sign.
  5  9 If the person fails to do so, the board may notify the proper
  5 10 state, county, or city law enforcement authorities to have the
  5 11 sign removed at cost to the person.  The board may sanction
  5 12 any person for failing to remove an improperly placed campaign
  5 13 sign.
  5 14    Sec. 8.  Section 68A.501, Code 2005, is amended to read as
  5 15 follows:
  5 16    68A.501  FUNDS FROM UNKNOWN SOURCE == ESCHEAT.
  5 17    The expenditure of funds from an unknown or unidentifiable
  5 18 source received by a candidate or committee is prohibited.
  5 19 Such funds received by a candidate or committee shall escheat
  5 20 to the state. Any candidate or committee receiving such
  5 21 contributions shall remit such contributions to the director
  5 22 of the department of administrative services board who shall
  5 23 forward such contributions to the proper agency for deposit in
  5 24 the general fund of the state. Persons requested to make a
  5 25 contribution at a fundraising event shall be advised that it
  5 26 is illegal to make a contribution in excess of ten dollars
  5 27 unless the person making the contribution also provides the
  5 28 person's name and address.
  5 29                           EXPLANATION
  5 30    This bill makes a number of revisions to Iowa's campaign
  5 31 disclosure income tax checkoff Act.
  5 32    Code section 68A.102 contains a definition of the term
  5 33 "contribution".  Under current law the provision of
  5 34 transportation to a candidate is not defined as a contribution
  5 35 as long as the value is not more than $100, calculated at 20
  6  1 cents per mile; the bill ties the per mile rate to that
  6  2 specified in the internal revenue code for business expenses.
  6  3    Code section 68A.201 requires the filing of a statement of
  6  4 organization by a committee.  The bill requires a committee to
  6  5 file a disclosure report, even if it has not previously filed
  6  6 a statement of organization, when the committee's financial
  6  7 activity reaches the level where a disclosure statement is
  6  8 required.
  6  9    Code sections 68A.201 and 68A.203 are amended editorially
  6 10 and structurally.  The latter revisions also exempt a
  6 11 candidate or a committee officer from the requirement that a
  6 12 person who receives contributions on behalf of a committee
  6 13 provide an accounting of all contributions within 15 days of
  6 14 either receipt of the contribution or demand of the treasurer.
  6 15 Current provisions provide that committee funds or property
  6 16 may not be used to the personal benefit of the committee
  6 17 members or associates of members.  The bill includes the
  6 18 candidate in this prohibition.
  6 19    The bill strikes Code section 68A.401, subsection 3.  That
  6 20 subsection requires that the county commissioner of elections
  6 21 retain statements and reports provided by the ethics and
  6 22 campaign disclosure board for a county, city, school, or other
  6 23 political subdivision for a specified period.
  6 24    Code section 68A.402 relates to reports by a political
  6 25 committee expressly advocating the passage or defeat of a
  6 26 ballot issue.  The bill requires that a report covering the
  6 27 time period from nine days before the election through
  6 28 December 31 must be filed on or before January 19 of the next
  6 29 calendar year.
  6 30    Code section 68A.406 is amended to require that the person
  6 31 who either paid for or placed a campaign sign be responsible
  6 32 for moving the sign if it is improperly placed.  Current law
  6 33 places this burden on highway officials.
  6 34    Code section 68A.501 relates to the receipt of
  6 35 contributions from an unknown source.  The bill's revision
  7  1 requires those contributions to be remitted to the board;
  7  2 current provisions require those contributions to be remitted
  7  3 to the department of administrative services.
  7  4 LSB 5370HV 81
  7  5 jr:rj/sh/8