House Study Bill 534



                                       SENATE/HOUSE FILE       
                                       BY  (PROPOSED ETHICS AND
                                            CAMPAIGN DISCLOSURE
                                            BOARD BILL)


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

                                      A BILL FOR

  1 An Act relating to activities of lobbyists and the ethical
  2    conduct of state officials and employees.
  3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
  4 TLSB 5384DP 81
  5 tm/je/5

PAG LIN



  1  1    Section 1.  NEW SECTION.  68B.2B  EXECUTIVE BRANCH
  1  2 COMPENSATION.
  1  3    1.  Effective July 1, 2006, an official or state employee
  1  4 shall not receive compensation simultaneously from more than
  1  5 one executive branch agency, unless the official or state
  1  6 employee provides notice to the board within twenty business
  1  7 days of accepting employment with a second executive branch
  1  8 agency.  Notice under this section shall include all of the
  1  9 following:
  1 10    a.  The name and contact information of the official or
  1 11 state employee and the name of the official's or employee's
  1 12 original executive branch agency.
  1 13    b.  The name of the second executive branch agency from
  1 14 which compensation may be received.
  1 15    c.  The amount of compensation to be received and a brief
  1 16 explanation of what services are to be performed for the
  1 17 second executive branch agency.
  1 18    2.  The board shall adopt rules pursuant to chapter 17A
  1 19 necessary for the administration of this section.
  1 20    3.  This section shall not apply to service in the Iowa
  1 21 national guard or service in the general assembly.
  1 22    Sec. 2.  Section 68B.4, Code Supplement 2005, is amended to
  1 23 read as follows:
  1 24    68B.4  SALES OR LEASES BY REGULATORY AGENCY OFFICIALS AND
  1 25 EMPLOYEES.
  1 26    1.  An official or employee of any regulatory agency shall
  1 27 not sell or lease, either directly or indirectly, any goods or
  1 28 services to individuals, associations, or corporations subject
  1 29 to the regulatory authority of the agency of which the person
  1 30 is an official or employee, except when the official or
  1 31 employee has met all of the following conditions:
  1 32    1.  a.  The consent of the regulatory agency for which the
  1 33 person is an official or employee is obtained and the person
  1 34 is not the official or employee with the authority to
  1 35 determine whether agency consent is to be given under this
  2  1 section.
  2  2    2.  b.  The duties or functions performed by the official
  2  3 or employee for the regulatory agency are not related to the
  2  4 regulatory authority of the agency over the individual,
  2  5 association, or corporation, or the selling or leasing of
  2  6 goods or services by the official or employee to the
  2  7 individuals, associations, or corporations does not affect the
  2  8 official's or employee's duties or functions at the regulatory
  2  9 agency.
  2 10    3.  c.  The selling or leasing of any goods or services by
  2 11 the official or employee to an individual, association, or
  2 12 corporation does not include advocacy on behalf of the
  2 13 individual, association, or corporation to the regulatory
  2 14 agency in which the person is an official or employee.
  2 15    4.  d.  The selling or leasing of any goods or services by
  2 16 the official or employee to an individual, association, or
  2 17 corporation does not cause the official or employee to sell or
  2 18 lease goods or services to the regulatory agency on behalf of
  2 19 the individual, association, or corporation.
  2 20    2.  The board shall adopt rules specifying the method by
  2 21 which employees may obtain agency consent under this section.
  2 22 The board shall adopt rules specifying the method by which
  2 23 officials may obtain agency consent under this section,
  2 24 including situations when the person seeking to make the sale
  2 25 or lease is the executive or administrative head of the
  2 26 regulatory agency.  A regulatory agency granting consent under
  2 27 this section shall file a copy of the consent with the board
  2 28 within twenty days of the consent being granted.
  2 29    Sec. 3.  Section 68B.4B, Code Supplement 2005, is amended
  2 30 to read as follows:
  2 31    68B.4B  SALES OR LEASES BY MEMBERS OF THE OFFICE OF THE
  2 32 GOVERNOR.
  2 33    A permanent full=time member of the office of the governor
  2 34 shall not sell or lease, either directly or indirectly, any
  2 35 goods or services to a registered lobbyist before the general
  3  1 assembly or the executive branch or to an individual,
  3  2 association, or corporation which employs a person who is a
  3  3 registered lobbyist before the general assembly or the
  3  4 executive branch, except when the member of the office of the
  3  5 governor has met all of the following conditions:
  3  6    1.  The consent of the person or persons responsible for
  3  7 hiring or approving the hiring of the member of the office of
  3  8 the governor is obtained.  A copy of the consent shall be
  3  9 filed with the board within twenty days of the consent being
  3 10 granted.
  3 11    2.  The duties and functions performed by the member for
  3 12 the office of the governor are not related to the authority of
  3 13 the office of the governor over the individual, association,
  3 14 or corporation, or the selling or leasing of goods or services
  3 15 by the member of the office of the governor to the
  3 16 individuals, associations, or corporations does not affect the
  3 17 member's duties or functions at the office of the governor.
  3 18    3.  The selling or leasing of any goods or services by the
  3 19 member of the office of the governor to an individual,
  3 20 association, or corporation does not include lobbying of the
  3 21 office of the governor.
  3 22    4.  The selling or leasing of any goods or services by the
  3 23 member of the office of the governor does not cause the member
  3 24 to sell or lease goods or services to the office of the
  3 25 governor on behalf of the individual, association, or
  3 26 corporation.
  3 27    Sec. 4.  Section 68B.37, subsection 1, paragraph a, Code
  3 28 2005, is amended to read as follows:
  3 29    a.  The lobbyist's clients before the general assembly.
  3 30    Sec. 5.  Section 68B.37, subsection 1, paragraph d, Code
  3 31 2005, is amended to read as follows:
  3 32    d.  Expenditures made by the lobbyist for the purposes of
  3 33 providing the services enumerated under section 68B.2,
  3 34 subsection 13, paragraph "a", before the general assembly.
  3 35    Sec. 6.  Section 68B.37, subsection 2, Code 2005, is
  4  1 amended to read as follows:
  4  2    2.  A lobbyist before a state agency or the office of the
  4  3 governor shall file with the board, on forms prescribed by the
  4  4 board, a report disclosing the same items described in
  4  5 subsection 1. all of the following:
  4  6    a.  The lobbyist's clients before the executive branch.
  4  7    b.  Contributions made to candidates for state office by
  4  8 the lobbyist during calendar months during the reporting
  4  9 period when the general assembly is not in session.
  4 10    c.  The recipient of the campaign contributions.
  4 11    d.  Expenditures made by the lobbyist for the purposes of
  4 12 providing the services enumerated under section 68B.2,
  4 13 subsection 13, paragraph "a", before the executive branch.
  4 14    For purposes of this subsection, "expenditures" does not
  4 15 include expenditures made by any organization for publishing a
  4 16 newsletter or other informational release for its members.
  4 17                           EXPLANATION
  4 18    This bill relates to activities of lobbyists and the
  4 19 ethical conduct of state officials and employees.
  4 20    The bill prohibits, effective July 1, 2006, an executive
  4 21 branch official or state employee from receiving compensation
  4 22 simultaneously from more than one executive branch agency,
  4 23 unless the official or state employee provides notice to the
  4 24 ethics and campaign disclosure board within 20 business days
  4 25 of accepting employment with a second executive branch agency.
  4 26 The bill provides that this provision does not apply to
  4 27 service in the Iowa national guard or service in the general
  4 28 assembly.
  4 29    The bill amends Code sections 68B.4 and 68B.4B relating to
  4 30 sales by officials, regulatory agency employees, and members
  4 31 of the office of the governor.  Currently, the Code prohibits
  4 32 the sale of goods and services by such entities under certain
  4 33 situations.  The bill adds the leasing of goods and services
  4 34 to these provisions.
  4 35    The bill amends lobbyist reporting requirements.  The bill
  5  1 requires a lobbyist before a state agency or the office of the
  5  2 governor to file a report with the ethics and campaign
  5  3 disclosure board disclosing the lobbyist's clients before the
  5  4 executive branch, contributions made to candidates for state
  5  5 office by the lobbyist during calendar months during the
  5  6 reporting period when the general assembly is not in session,
  5  7 the recipient of the campaign contributions, and expenditures
  5  8 made by the lobbyist for the purposes of providing the
  5  9 services as a lobbyist.
  5 10 LSB 5384DP 81
  5 11 tm:rj/je/5.1