Senate File 2242 - Introduced SENATE FILE BY QUIRMBACH Passed Senate, Date Passed House, Date Vote: Ayes Nays Vote: Ayes Nays Approved A BILL FOR 1 An Act relating to ethics concerning certain exceptions under the 2 gift law and reporting by lobbyists. 3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 4 TLSB 5889XS 81 5 tm/je/5 PAG LIN 1 1 Section 1. Section 68B.22, subsection 4, paragraphs i and 1 2 r, Code Supplement 2005, are amended to read as follows: 1 3 i. Nonmonetary items with a value ofthreefour dollars or 1 4 less that are received from any one donor during one calendar 1 5 day. 1 6 r. Gifts of food, beverage, and entertainment received by 1 7 public officials or public employees at a function where every 1 8 member of the general assembly has been invited to attend, 1 9 when the function takes place during a regular session of the 1 10 general assembly, provided the cost of food, beverage, and 1 11 entertainment for the function does not exceed four dollars 1 12 per person attending the function. A sponsor of a function 1 13 under this paragraph shall file a report disclosing the total 1 14 amount expended, including in=kind expenditures, on food, 1 15 beverage, and entertainment for the function. The report 1 16 shall be filed with the person or persons designated by the 1 17 secretary of the senate and the chief clerk of the house 1 18 within five business days following the date of the function. 1 19 The person or persons designated by the secretary of the 1 20 senate and the chief clerk of the house shall forward a copy 1 21 of each report to the board. 1 22 Sec. 2. Section 68B.22, subsection 8, Code Supplement 1 23 2005, is amended to read as follows: 1 24 8. Except as otherwise provided in subsection 4, an 1 25 organization or association which has as one of its purposes 1 26 the encouragement of the passage, defeat, introduction, or 1 27 modification of legislation shall not give and a member of the 1 28 general assembly shall not receive food, beverages, 1 29 registration, or scheduled entertainment with a per person 1 30 value in excess ofthreefour dollars. 1 31 Sec. 3. Section 68B.37, subsection 1, paragraph d, Code 1 32 2005, is amended to read as follows: 1 33 d. Expenditures made by the lobbyist for the purposes of 1 34 providing the services enumerated under section 68B.2, 1 35 subsection 13, paragraph "a". Such expenditures shall be 2 1 itemized and shall include but not be limited to salaries for 2 2 employees, payments to independent contractors, office and 2 3 administrative expenses, travel expenses, gift expenses, and 2 4 entertainment expenses. Itemization of expenditures shall be 2 5 given for each client and shall identify the recipient of the 2 6 expenditures if the recipient receives more than fifty dollars 2 7 during the reporting period from the lobbyist. 2 8 Sec. 4. Section 68B.37, subsection 3, Code 2005, is 2 9 amended to read as follows: 2 10 3. The reports by lobbyists before the general assembly 2 11 shall be filed not later than twenty=five days following any 2 12 month in which the general assembly is in session and 2 13 thereafter on or before July 31, October 31, and January 31. 2 14 The reports filed by a lobbyist before the general assembly 2 15 shall contain information for the preceding calendar month or 2 16 quarter or parts thereof during which the person was engaged 2 17 in lobbying. Reports filed by lobbyists before a state agency 2 18 shall be filed on or before April 30, July 31, October 31, and 2 19 January 31, for the preceding calendar quarter or parts 2 20 thereof during which the person was engaged in lobbying. 2 21 4. If a person cancels the person's lobbyist registration 2 22 at any time during the calendar year, the reports required by 2 23 this section are due on the dates required by this section or 2 24 fifteen days after cancellation, whichever is earlier. The 2 25 report due January 31 shall include all reportable items for 2 26 the preceding calendar year in addition to containing the 2 27 quarterly reportable items. A lobbyist who cancels the 2 28 person's lobbyist registration before January 1 of a year 2 29 shall file a report listing all reportable items for the year 2 30 in which the cancellation was filed. A lobbyist who cancels 2 31 the person's lobbyist registration between January 1 and 2 32 January 15 of a year shall file a report listing all 2 33 reportable items for the preceding year and so much of the 2 34 month of January as has expired at the time of cancellation. 2 35 However, if a lobbyist is a person who is designated to 3 1 represent the interest of an organization as defined in 3 2 section 68B.2, subsection 13, paragraph "a", subparagraph (2), 3 3 but is not paid compensation for that representation and does 3 4 not expend more than one thousand dollars as provided in 3 5 section 68B.2, subsection 13, paragraph "a", subparagraph (4), 3 6 the lobbyist shall only be required to file the report 3 7 specified in this section once annually, which shall be 3 8 performed at the time of filing the person's lobbyist 3 9 registration form or forms. 3 10 5. a. A lobbyist before the general assembly who fails to 3 11 timely file a lobbyist report required under this section 3 12 shall be subject to the imposition of a penalty fee according 3 13 to the following fee schedule: 3 14 (1) For the first occurrence in a calendar year, the 3 15 penalty fee shall be twenty=five dollars if the report is 3 16 fourteen or fewer days late, fifty dollars if the report is 3 17 more than fourteen but less than thirty=one days late, and one 3 18 hundred dollars if the report is thirty=one or more days late. 3 19 (2) For the second occurrence in a calendar year, the 3 20 penalty fee shall be fifty dollars if the report is fourteen 3 21 or fewer days late, one hundred dollars if the report is more 3 22 than fourteen but less than thirty=one days late, and two 3 23 hundred dollars if the report is thirty=one or more days late. 3 24 (3) For the third and subsequent occurrences in a calendar 3 25 year, the penalty fee shall be one hundred dollars if the 3 26 report is fourteen or fewer days late, two hundred dollars if 3 27 the report is more than fourteen but less than thirty=one days 3 28 late, and four hundred dollars if the report is thirty=one or 3 29 more days late. 3 30 b. The penalty fee shall be assessed by the chief clerk of 3 31 the house or the secretary of the senate and due upon 3 32 assessment and payable upon filing of the delinquent report 3 33 with the chief clerk of the house or the secretary of the 3 34 senate. An appeal of a penalty fee assessed pursuant to this 3 35 subsection may be filed with the ethics committee in the house 4 1 which assessed the penalty fee. A lobbyist shall not be 4 2 assessed a penalty fee twice for the same delinquent report. 4 3 c. Penalty fees collected pursuant to this subsection 4 4 shall be credited to the general fund of the state. 4 5 6. Upon receipt of a report required to be filed with the 4 6 general assembly under this section, the chief clerk of the 4 7 house or the secretary of the senate shall immediately 4 8 transmit a copy of the report to the ethics and campaign 4 9 disclosure board. The board shall establish a procedure for 4 10 continual, random auditing of reports filed by lobbyists 4 11 before the general assembly. Upon completion of an audit, the 4 12 board shall submit the findings to the chief clerk of the 4 13 house or the secretary of the senate for distribution to the 4 14 ethics committees in both houses. 4 15 EXPLANATION 4 16 This bill relates to ethics concerning certain exceptions 4 17 under the gift law and reporting by lobbyists. 4 18 Currently, a public official, public employee, candidate, 4 19 or member of the immediate family of a public official, public 4 20 employee, or candidate may receive an otherwise impermissible 4 21 gift if the gift is a nonmonetary item with a value of $3 or 4 22 less that is received from any one donor during one calendar 4 23 day. The bill increases the $3 limit to $4. 4 24 Currently, public officials and public employees may 4 25 receive an otherwise impermissible gift of food, beverage, and 4 26 entertainment if such gifts are received at a function where 4 27 every member of the general assembly has been invited to 4 28 attend and when the function takes place during a regular 4 29 session of the general assembly. The bill adds a requirement 4 30 that the cost of the food, beverage, and entertainment for the 4 31 function shall not exceed $4 per person attending the 4 32 function. 4 33 Currently, an organization or association which has as one 4 34 of its purposes the encouragement of the passage, defeat, 4 35 introduction, or modification of legislation shall not give 5 1 and a member of the general assembly shall not receive food, 5 2 beverages, registration, or scheduled entertainment with a per 5 3 person value in excess of $3. The bill increases the $3 limit 5 4 to $4. 5 5 The bill provides that expenditures made by a lobbyist 5 6 before the general assembly and reported in a report filed 5 7 with the general assembly shall be itemized and shall include 5 8 but not be limited to salaries for employees, payments to 5 9 independent contractors, office and administrative expenses, 5 10 travel expenses, gift expenses, and entertainment expenses. 5 11 The bill provides that itemization of expenditures shall be 5 12 given for each client and shall identify the recipient of the 5 13 expenditures if the recipient receives more than $50 during 5 14 the reporting period from the lobbyist. 5 15 The bill provides that a lobbyist before the general 5 16 assembly who fails to timely file a required lobbyist report 5 17 shall be subject to the imposition of a penalty fee according 5 18 to a fee schedule included in the bill. The bill provides 5 19 that the penalty fee shall be assessed by the chief clerk of 5 20 the house or the secretary of the senate and due upon 5 21 assessment and payable upon filing of the delinquent report by 5 22 the chief clerk of the house or the secretary of the senate. 5 23 The bill allows for an appeal of a penalty fee to be filed 5 24 with the ethics committee in the house which assessed the 5 25 penalty fee. The bill provides that a lobbyist shall not be 5 26 assessed a penalty fee twice for the same delinquent report. 5 27 The bill provides that penalty fees collected shall be 5 28 credited to the general fund of the state. 5 29 The bill provides that, upon receipt of a lobbyist report, 5 30 the chief clerk of the house or the secretary of the senate 5 31 shall immediately transmit a copy of the report to the ethics 5 32 and campaign disclosure board. The bill requires the board to 5 33 establish a procedure for continual, random auditing of 5 34 reports filed by lobbyists before the general assembly. The 5 35 bill provides that, upon completion of an audit, the board 6 1 shall submit the findings to the chief clerk of the house or 6 2 the secretary of the senate for distribution to the ethics 6 3 committees in both houses. 6 4 LSB 5889XS 81 6 5 tm:rj/je/5.1