House File 2678 - Introduced HOUSE FILE BY McCARTHY (COMPANION TO LSB 6650XS BY GRONSTAL) Passed House, Date Passed Senate, Date Vote: Ayes Nays Vote: Ayes Nays Approved A BILL FOR 1 An Act prohibiting the use of campaign funds as compensation to a 2 candidate and providing an effective date. 3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 4 TLSB 6650YH 82 5 jr/rj/14 PAG LIN 1 1 Section 1. Section 68A.302, subsection 2, Code 2007, is 1 2 amended by adding the following new paragraph: 1 3 NEW PARAGRAPH. k. Payment to a candidate as a salary, 1 4 gratuity, or other compensation. However, reimbursement of 1 5 expenses as otherwise authorized in this section is permitted. 1 6 Sec. 2. EFFECTIVE DATE. This Act, being deemed of 1 7 immediate importance, takes effect upon enactment. 1 8 EXPLANATION 1 9 Code section 68A.302 generally limits the use of campaign 1 10 funds to campaign purposes, educational and other expenses 1 11 associated with the duties of office, or constituency 1 12 services. That section prohibits the use of campaign funds 1 13 for personal expenses or personal benefit and provides a list 1 14 of prohibited uses. 1 15 This bill adds to the list of prohibited uses the use of 1 16 campaign funds to pay the candidate a salary, gratuity, or 1 17 other form of compensation. 1 18 As provided in Code section 68A.701, a willful violation of 1 19 any provision of the campaign finance chapter is a serious 1 20 misdemeanor punishable by confinement for up to one year and a 1 21 fine of at least $315 but not more than $1,875. A variety of 1 22 civil remedies are also available in Code section 68B.32D for 1 23 a violation of Code chapter 68A or rules of the ethics and 1 24 campaign disclosure board, ranging from a reprimand to a civil 1 25 penalty of not more than $2,000. 1 26 The bill is effective upon enactment. 1 27 LSB 6650YH 82 1 28 jr/rj/14.1