House Study Bill 65



                                   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 campaign finance committee reporting, use of
  2    committee funds or property, independent expenditures,
  3    placement of campaign signs, and use of public resources.
  4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
  5 TLSB 1186DP 81
  6 jr/cf/24

PAG LIN



  1  1    Section 1.  Section 68A.102, subsection 9, Code 2005, is
  1  2 amended to read as follows:
  1  3    9.  "Consultant" means a person who provides or procures
  1  4 services for or on behalf of a candidate including but not
  1  5 limited to consulting, public relations, advertising,
  1  6 fundraising, polling, managing or organizing services.
  1  7    Sec. 2.  Section 68A.203, subsection 2, Code 2005, is
  1  8 amended to read as follows:
  1  9    2.  An individual who receives contributions for a
  1 10 committee without the prior authorization of the chairperson
  1 11 of the committee or the candidate shall be responsible for
  1 12 either rendering the contributions to the treasurer within
  1 13 fifteen days of the date of receipt of the contributions, or
  1 14 depositing the contributions in the account maintained by the
  1 15 committee within seven days of the date of receipt of the
  1 16 contributions.  A person who receives contributions for a
  1 17 committee shall, not later than fifteen days from the date of
  1 18 receipt of the contributions or on demand of the treasurer,
  1 19 render to the treasurer the contributions and an account of
  1 20 the total of all contributions, including the name and address
  1 21 of each person making a contribution in excess of ten dollars,
  1 22 the amount of the contributions, and the date on which the
  1 23 contributions were received.  The treasurer shall deposit all
  1 24 contributions within seven days of receipt by the treasurer in
  1 25 an account maintained by the committee.  All funds of a
  1 26 committee shall be segregated from any other funds held by
  1 27 officers, members, or associates of the committee or the
  1 28 committee's candidate.  However, if a candidate's committee
  1 29 receives contributions only from the candidate, or if a
  1 30 permanent organization temporarily engages in activity which
  1 31 qualifies it as a political committee and all expenditures of
  1 32 the organization are made from existing general operating
  1 33 funds and funds are not solicited or received for this purpose
  1 34 from sources other than operating funds, then that committee
  1 35 is not required to maintain a separate account in a financial
  2  1 institution.  Committee funds or committee property shall not
  2  2 be used for the personal benefit of an officer, member, or
  2  3 associate of the committee.  The funds of a committee are not
  2  4 attachable for the personal debt of the committee's candidate
  2  5 or an officer, member, or associate of the committee.
  2  6    Sec. 3.  Section 68A.304, Code 2005, is amended by adding
  2  7 the following new subsection:
  2  8    NEW SUBSECTION.  3.  Consumable campaign property may be
  2  9 disposed of in any manner by the candidate's committee.  A
  2 10 candidate's committee shall not transfer consumable campaign
  2 11 property to another candidate without receiving fair market
  2 12 value compensation unless the candidate in both campaigns is
  2 13 the same person.
  2 14    Sec. 4.  Section 68A.304, subsection 1, paragraph d, Code
  2 15 2005, is amended to read as follows:
  2 16    d.  Consumable campaign property is not required to be
  2 17 reported as committee inventory, regardless of the initial
  2 18 value of the consumable campaign property.  "Consumable
  2 19 campaign property", for purposes of this section, means
  2 20 stationery, yard campaign signs, and other campaign materials
  2 21 that have been permanently imprinted to be specific to a
  2 22 candidate or election.
  2 23    Sec. 5.  Section 68A.402, subsection 6, paragraphs a and b,
  2 24 Code 2005, are amended to read as follows:
  2 25    a.  A state statutory political committee shall file a
  2 26 report on the same dates as a candidate's committee is
  2 27 required to file reports under subsection 2, paragraph
  2 28 paragraphs "a", and subsection 5, paragraph "b" "c".
  2 29    b.  A county statutory political committee shall file a
  2 30 report on the same dates as a candidate's committee is
  2 31 required to file reports under subsection 2, paragraph
  2 32 paragraphs "a", and subsection 5, paragraph "b" "c".
  2 33    Sec. 6.  Section 68A.402, subsection 7, paragraphs a and b,
  2 34 Code 2005, are amended to read as follows:
  2 35    a.  STATEWIDE OFFICE AND GENERAL ASSEMBLY ELECTIONS.
  3  1    ELECTION YEAR.  A political committee expressly advocating
  3  2 the nomination, election, or defeat of candidates for
  3  3 statewide office or the general assembly shall file a report
  3  4 on the same dates as a candidate's committee is required to
  3  5 file reports under subsection 2, paragraph "a".
  3  6    NONELECTION YEAR.  A political committee expressly
  3  7 advocating the nomination, election, or defeat of candidates
  3  8 for statewide office or the general assembly shall file a
  3  9 report as follows:
  3 10 Report due:                        Covering period:
  3 11 January 19 (next July 19           January 1 through
  3 12   calendar year)                   June 30
  3 13 July 19 January 19 (next           July 1 through
  3 14   calendar year)                   December 31
  3 15    b.  COUNTY ELECTIONS.  A political committee expressly
  3 16 advocating the nomination, election, or defeat of candidates
  3 17 for county office shall file reports on the same dates as a
  3 18 candidate's committee is required to file reports under
  3 19 subsection 2, paragraph paragraphs "a", and subsection 5,
  3 20 paragraph "b" "c".
  3 21    Sec. 7.  Section 68A.402, subsection 8, Code 2005, is
  3 22 amended to read as follows:
  3 23    8.  POLITICAL COMMITTEES == BALLOT ISSUES.  A political
  3 24 committee expressly advocating the passage or defeat of a
  3 25 ballot issue shall file reports on the same dates as
  3 26 candidates for city office are required to file reports under
  3 27 subsection 3. as follows:
  3 28    a.  ELECTION YEAR.  Five days before the election covering
  3 29 the period of the date of initial activity through ten days
  3 30 before election.
  3 31    b.  NONELECTION YEAR.  On January 19 of the next calendar
  3 32 year that covers the time period of nine days before the
  3 33 election through December 31.
  3 34    Sec. 8.  Section 68A.402, subsection 10, Code 2005, is
  3 35 amended to read as follows:
  4  1    10.  ELECTION YEAR DEFINED.  As used in this section,
  4  2 "election year" means a year in which the name of the
  4  3 candidate or ballot issue that is expressly advocated for or
  4  4 against appears on any ballot to be voted on by the electors
  4  5 of the state of Iowa.  For state and county statutory
  4  6 political committees, and all other political committees
  4  7 except for political committees that advocate for or against
  4  8 ballot issues, "election year" means a year in which primary
  4  9 and general elections are held.
  4 10    Sec. 9.  Section 68A.404, subsection 1, Code 2005, is
  4 11 amended to read as follows:
  4 12    1.  As used in this section, "independent expenditure"
  4 13 means an expenditure one or more expenditures in excess of
  4 14 seven hundred fifty dollars in the aggregate for a
  4 15 communication that expressly advocates the nomination,
  4 16 election, or defeat of a clearly identified candidate or the
  4 17 passage or defeat of a ballot issue that is made without the
  4 18 prior approval or coordination with a candidate, candidate's
  4 19 committee, or a ballot issue committee.
  4 20    Sec. 10.  Section 68A.404, subsection 2, Code 2005, is
  4 21 amended by striking the subsection and inserting in lieu
  4 22 thereof the following:
  4 23    2.  A person, other than a committee registered under this
  4 24 chapter, that makes one or more independent expenditures shall
  4 25 file an independent expenditure statement.
  4 26    a.  The filing of an independent expenditure statement
  4 27 under this section does not alone require the person filing
  4 28 the independent expenditure statement to register and file
  4 29 reports under sections 68A.201 and 68A.402.
  4 30    b.  This section does not apply to a candidate, candidate's
  4 31 committee, state statutory political committee, county
  4 32 statutory political committee, or a political committee.
  4 33    Sec. 11.  Section 68A.404, subsection 3, Code 2005, is
  4 34 amended by striking the subsection.
  4 35    Sec. 12.  Section 68A.405, subsection 2, paragraph b, Code
  5  1 2005, is amended to read as follows:
  5  2    b.  Small items upon which the inclusion of the statement
  5  3 is impracticable including, but not limited to, yard campaign
  5  4 signs, bumper stickers, pins, buttons, pens, political
  5  5 business cards, and matchbooks.
  5  6    Sec. 13.  Section 68A.406, subsection 1, paragraph f, Code
  5  7 2005, is amended to read as follows:
  5  8    f.  Property leased by a candidate, committee, or an
  5  9 organization established to advocate the nomination, election,
  5 10 or defeat of a candidate or the passage or defeat of a ballot
  5 11 issue that has not yet registered pursuant to section 68A.201,
  5 12 when the property is used as campaign headquarters or a
  5 13 campaign office and the placement of the sign is limited to
  5 14 the space that is actually leased.
  5 15    Sec. 14.  Section 68A.406, subsection 2, Code 2005, is
  5 16 amended by adding the following new paragraphs:
  5 17    NEW PARAGRAPH.  e.  Within thirty feet of an absentee
  5 18 voting site during the hours when absentee ballots are
  5 19 available in the office of the county commissioner of
  5 20 elections as provided in section 53.10.
  5 21    NEW PARAGRAPH.  f.  Within thirty feet of a satellite
  5 22 absentee voting station during the hours when absentee ballots
  5 23 are available at the satellite absentee voting station as
  5 24 provided in section 53.11.
  5 25    Sec. 15.  Section 68A.406, subsection 3, Code 2005, is
  5 26 amended to read as follows:
  5 27    3.  Yard Campaign signs with dimensions of thirty=two
  5 28 square feet or less are exempt from the attribution statement
  5 29 requirement in section 68A.405.  Campaign signs in excess of
  5 30 thirty=two square feet, or signs that are affixed to buildings
  5 31 or vehicles regardless of size except for bumper stickers, are
  5 32 required to include the attribution statement required by
  5 33 section 68A.405.  The placement or erection of yard campaign
  5 34 signs shall be exempt from the requirements of chapter 480
  5 35 relating to underground facilities organization information.
  6  1    Sec. 16.  Section 68A.503, subsection 4, paragraph c, Code
  6  2 2005, is amended to read as follows:
  6  3    c.  The placement of yard campaign signs under section
  6  4 68A.406.
  6  5    Sec. 17.  Section 68A.505, Code 2005, is amended to read as
  6  6 follows:
  6  7    68A.505  USE OF PUBLIC MONEYS RESOURCES FOR POLITICAL
  6  8 PURPOSES.
  6  9    The state and the governing body of a county, city, or
  6 10 other political subdivision of the state shall not expend use
  6 11 or permit the expenditure use of public moneys resources for
  6 12 political purposes, including expressly advocating the passage
  6 13 or defeat of a ballot issue.
  6 14    This section shall not be construed to limit the freedom of
  6 15 speech of officials or employees of the state or of officials
  6 16 or employees of a governing body of a county, city, or other
  6 17 political subdivision of the state.  This section also shall
  6 18 not be construed to prohibit the state or a governing body of
  6 19 a political subdivision of the state from expressing an
  6 20 opinion on a ballot issue through the passage of a resolution
  6 21 or proclamation.
  6 22                           EXPLANATION
  6 23    This bill contains a variety of revisions to the campaign
  6 24 finance laws.  The bill redefines consultant to include a
  6 25 person providing services not only to a candidate, but also to
  6 26 a person providing services to a ballot issue committee or a
  6 27 political committee.  Concerning the permissible use of
  6 28 campaign contributions and property, this bill prohibits the
  6 29 use of committee funds or property for the personal benefit of
  6 30 committee officers, members, or associates.  Consumable
  6 31 campaign property cannot be transferred to another candidate
  6 32 for less than fair market value compensation.
  6 33    The bill establishes a requirement that state and county
  6 34 statutory political committees must file reports on the same
  6 35 dates required for a candidate's committee in both election
  7  1 and nonelection years.
  7  2    The bill changes the reporting deadline for a political
  7  3 committee expressly advocating the nomination, election, or
  7  4 defeat of candidates for statewide office or the general
  7  5 assembly.  In nonelection years the deadline for reporting,
  7  6 for the period of the first half of the calendar year, was
  7  7 January 19 of the following year, over six months after the
  7  8 period ended.  In this revision the deadline is moved up to
  7  9 July 19, 19 days after the reporting period ends.
  7 10    The bill changes the reporting deadline for a ballot issue
  7 11 political committee.  In an election year the committee must
  7 12 file a report five days before the election covering the
  7 13 period of the date of initial activity through 10 days before
  7 14 election.  In nonelection years the report must be filed on
  7 15 January 19 of the next calendar year that covers the time
  7 16 period of nine days before the election through December 31.
  7 17    The bill amends the meaning of the term "election year" for
  7 18 reporting purposes.  Except for a ballot issue committee, the
  7 19 term means a year in which primary and general elections are
  7 20 held.
  7 21    Relating to independent expenditures, the bill defines the
  7 22 term to include one or more expenditures in excess of $750 in
  7 23 the aggregate.  It also expands the coverage of the term to
  7 24 include the nomination of a candidate as well as the election
  7 25 or defeat of a candidate or the passage or defeat of the
  7 26 ballot issue.
  7 27    The bill amends current statutory language relating to
  7 28 "ballot issue" campaign signs placed on property leased by a
  7 29 candidate, committee, or an organization.  The current
  7 30 language is expanded to include campaign signs advocating the
  7 31 nomination, election, or defeat of a candidate.
  7 32    The bill recites in Code section 68A.406(2) the Code
  7 33 chapter 53 prohibition of placement of campaign signs within
  7 34 30 feet of the absentee voting site or satellite absentee
  7 35 voting station during the hours when absentee ballots are
  8  1 available in the office of the county commissioner of
  8  2 elections or the voting station, respectively.  The bill also
  8  3 corrects a reference from yard signs to campaign signs.
  8  4    Lastly, the bill revises a current prohibition against
  8  5 using public moneys for political purposes, to more generally
  8  6 prohibit the use of public resources for political purposes.
  8  7 LSB 1186DP 81
  8  8 jr/cf/24