House Study Bill 40 



                                     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 contributions, the filing of
  2    disclosure reports, the posting of statements and reports on
  3    the internet, the posting of signs on private property, and
  4    the escheat of funds from an unknown or unidentifiable source.
  5 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
  6 TLSB 1255XD 82
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PAG LIN



  1  1    Section 1.  Section 68A.102, subsection 10, paragraph b,
  1  2 unnumbered paragraph 2, Code 2007, is amended to read as
  1  3 follows:
  1  4    "Contribution" shall not include services provided without
  1  5 compensation by individuals volunteering their time on behalf
  1  6 of a candidate's committee or political committee or a state
  1  7 or county statutory political committee except when organized
  1  8 or provided on a collective basis by a business, trade
  1  9 association, labor union, or any other organized group or
  1 10 association.  "Contribution" shall not include refreshments
  1 11 served at a campaign function so long as such refreshments do
  1 12 not exceed fifty dollars in value or transportation provided
  1 13 to a candidate so long as its value computed at a rate of
  1 14 twenty cents per mile the current rate of reimbursement
  1 15 allowed under the standard mileage rate method for computation
  1 16 of business expenses pursuant to the Internal Revenue Code
  1 17 does not exceed one hundred dollars in value in any one
  1 18 reporting period.  "Contribution" shall not include something
  1 19 provided to a candidate for the candidate's personal
  1 20 consumption or use and not intended for or on behalf of the
  1 21 candidate's committee.
  1 22    Sec. 2.  Section 68A.201, subsection 1, Code 2007, is
  1 23 amended to read as follows:
  1 24    1.  Every committee, as defined in this chapter, shall file
  1 25 a statement of organization within ten days from the date of
  1 26 its organization.  Unless formal organization has previously
  1 27 occurred, a committee is deemed to have organized as of the
  1 28 date that committee transactions exceed the financial activity
  1 29 threshold established in section 68A.102, subsection 5 or 18.
  1 30 If committee transactions exceed the financial activity
  1 31 threshold prior to the due date for filing a disclosure report
  1 32 as established under section 68A.402, the committee shall file
  1 33 a disclosure report whether or not a statement of organization
  1 34 has been filed by the committee.
  1 35    Sec. 3.  Section 68A.201, subsection 5, Code 2007, is
  2  1 amended to read as follows:
  2  2    5.  a.  When either a committee or organization not
  2  3 organized as a committee under this section makes a
  2  4 contribution to a committee organized in Iowa, that committee
  2  5 or organization shall disclose each contribution in excess of
  2  6 fifty dollars to the board.
  2  7    b.  A committee or organization not organized as a
  2  8 committee under this section which that is not registered and
  2  9 filing full disclosure reports of all financial activities
  2 10 with the federal election commission or another state's
  2 11 disclosure commission shall register and file full disclosure
  2 12 reports with the board pursuant to this chapter, and.  The
  2 13 committee or organization shall either appoint an eligible
  2 14 Iowa elector as committee or organization treasurer, or shall
  2 15 maintain all committee funds in an account in a financial
  2 16 institution located in Iowa.
  2 17    c.  A committee which that is currently filing a disclosure
  2 18 report in another jurisdiction shall either file a statement
  2 19 of organization under subsections 1 and 2 and file disclosure
  2 20 reports, the same as those required of committees organized
  2 21 only in Iowa, under section 68A.402, or shall file one copy of
  2 22 a verified statement with the board and a second copy with the
  2 23 treasurer of the committee receiving the contribution.  The
  2 24 form shall be completed and filed at the time the contribution
  2 25 is made within fifteen days of the contribution being made.
  2 26    d.  The verified statement shall be on forms prescribed by
  2 27 the board and shall attest that the committee is filing
  2 28 reports with the federal election commission or in a
  2 29 jurisdiction with reporting requirements which are
  2 30 substantially similar to those of this chapter, and that the
  2 31 contribution is made from an account which that does not
  2 32 accept contributions which that would be in violation of
  2 33 section 68A.503.
  2 34    e.  The form verified statement shall include the complete
  2 35 name, address, and telephone number of the contributing
  3  1 committee, the state or federal jurisdiction under which it is
  3  2 registered or operates, the identification of any parent
  3  3 entity or other affiliates or sponsors, its purpose, the name
  3  4 and address of an Iowa resident authorized to receive service
  3  5 of original notice, and the name and address of the receiving
  3  6 committee, the amount of the cash or in=kind contribution, and
  3  7 the date the contribution was made.
  3  8    Sec. 4.  Section 68A.203, subsection 2, Code 2007, is
  3  9 amended to read as follows:
  3 10    2.  a.  An individual who receives contributions for a
  3 11 committee without the prior authorization of the chairperson
  3 12 of the committee or the candidate shall be responsible for
  3 13 either rendering the contributions to the treasurer within
  3 14 fifteen days of the date of receipt of the contributions, or
  3 15 depositing the contributions in the account maintained by the
  3 16 committee within seven days of the date of receipt of the
  3 17 contributions.
  3 18    b.  A person, other than a candidate or committee officer,
  3 19 who receives contributions for a committee shall, not later
  3 20 than fifteen days from the date of receipt of the
  3 21 contributions or on demand of the treasurer, render to the
  3 22 treasurer the contributions and an account of the total of all
  3 23 contributions, including the name and address of each person
  3 24 making a contribution in excess of ten dollars, the amount of
  3 25 the contributions, and the date on which the contributions
  3 26 were received.
  3 27    c.  The treasurer shall deposit all contributions within
  3 28 seven days of receipt by the treasurer in an account
  3 29 maintained by the committee.
  3 30    d.  All funds of a committee shall be segregated from any
  3 31 other funds held by officers, members, or associates of the
  3 32 committee or the committee's candidate.  However, if a
  3 33 candidate's committee receives contributions only from the
  3 34 candidate, or if a permanent organization temporarily engages
  3 35 in activity which that qualifies it as a political committee
  4  1 and all expenditures of the organization are made from
  4  2 existing general operating funds and funds are not solicited
  4  3 or received for this purpose from sources other than operating
  4  4 funds, then that committee is not required to maintain a
  4  5 separate account in a financial institution.
  4  6    e.  Committee funds or committee property shall not be used
  4  7 for the personal benefit of an a candidate, officer, member,
  4  8 or associate of the committee.  The funds of a committee are
  4  9 not attachable for the personal debt of the committee's
  4 10 candidate or an officer, member, or associate of the
  4 11 committee.
  4 12    Sec. 5.  Section 68A.401, subsections 1 and 3, Code 2007,
  4 13 are amended to read as follows:
  4 14    1.  All statements and reports required to be filed under
  4 15 this chapter shall be filed with the board.  The board shall
  4 16 provide copies of all statements and reports filed under this
  4 17 chapter for a county, city, school, or other political
  4 18 subdivision to the commissioner responsible under section 47.2
  4 19 post on its internet website all statements and reports filed
  4 20 under this chapter.
  4 21    3.  The commissioner shall retain statements and reports
  4 22 provided by the board for a county, city, school, or other
  4 23 political subdivision for at least three years from the date
  4 24 of the election in which the committee is involved.  However,
  4 25 statements and reports provided by the board for county
  4 26 statutory political committees shall be retained for five
  4 27 years from the date of the election in which the committee is
  4 28 involved.  The candidate of a candidate's committee, or the
  4 29 chairperson of any other committee, is responsible for filing
  4 30 statements and reports under this chapter.  The board shall
  4 31 send notice to a committee that has failed to file a
  4 32 disclosure report at the time required under section 68A.402.
  4 33 A candidate of a candidate's committee, or the chairperson of
  4 34 any other committee, may be subject to a civil penalty for
  4 35 failure to file a disclosure report required under section
  5  1 68A.402.
  5  2    Sec. 6.  Section 68A.402, subsection 8, Code 2007, is
  5  3 amended to read as follows:
  5  4    8.  POLITICAL COMMITTEES == BALLOT ISSUES.  A political
  5  5 committee expressly advocating the passage or defeat of a
  5  6 ballot issue shall file reports as follows:
  5  7    a.  ELECTION YEAR.  Five days before the election covering
  5  8 the period of the date of initial activity through ten days
  5  9 before election.  Another report covering the time period from
  5 10 nine days before the election through December 31 shall be
  5 11 filed on or before January 19 of the next calendar year.
  5 12    b. NONELECTION YEAR.  On January 19 of the next calendar
  5 13 year that covers the time period of nine days before the
  5 14 election through December 31 January 1 through December 31 of
  5 15 the previous calendar year.
  5 16    Sec. 7.  Section 68A.406, subsection 2, unnumbered
  5 17 paragraph 2, Code 2007, is amended to read as follows:
  5 18    This subsection Subparagraphs "d", "e", and "f" shall not
  5 19 apply to the posting of signs on private property not a
  5 20 polling place, except that the placement of a sign on a motor
  5 21 vehicle, trailer, or semitrailer, or any attachment to a motor
  5 22 vehicle, trailer, or semitrailer parked on public property
  5 23 within three hundred feet of a polling place, which sign is
  5 24 more than ninety square inches in size, is prohibited.
  5 25    Sec. 8.  Section 68A.501, Code 2007, is amended to read as
  5 26 follows:
  5 27    68A.501  FUNDS FROM UNKNOWN SOURCE == ESCHEAT.
  5 28    The expenditure of funds from an unknown or unidentifiable
  5 29 source received by a candidate or committee is prohibited.
  5 30 Such funds received by a candidate or committee shall escheat
  5 31 to the state.  Any candidate or committee receiving such
  5 32 contributions shall remit such contributions to the director
  5 33 of the department of administrative services board which shall
  5 34 forward it to the proper agency for deposit in the general
  5 35 fund of the state. Persons requested to make a contribution at
  6  1 a fundraising event shall be advised that it is illegal to
  6  2 make a contribution in excess of ten dollars unless the person
  6  3 making the contribution also provides the person's name and
  6  4 address.
  6  5                           EXPLANATION
  6  6    This bill makes a variety of changes to Iowa's campaign
  6  7 finance and disclosure requirements.
  6  8    Code section 68A.102 is amended to modify the definition of
  6  9 a contribution and strikes current language that provides that
  6 10 a reportable contribution shall not include transportation
  6 11 provided to a candidate so long as its value is computed at a
  6 12 rate of 20 cents per mile.  This change maintains the $100 cap
  6 13 for transportation but ties the per mile limit to the internal
  6 14 revenue service rate.
  6 15    Code section 68A.201 is amended to require a committee to
  6 16 file a disclosure report, whether or not a statement of
  6 17 organization has been filed by the committee, whenever the
  6 18 financial threshold for disclosure reporting has been met.
  6 19    Code section 68A.201, subsection 5, is amended to require a
  6 20 committee that is currently filing a disclosure report in
  6 21 another jurisdiction to either file a statement of
  6 22 organization and disclosure report, or file one copy of a
  6 23 verified statement with the board.  The filing must be
  6 24 completed within 15 days of the contribution being made.
  6 25    Code section 68A.203, subsection 2, relating to the
  6 26 handling of campaign contributions, is amended to exclude a
  6 27 candidate or committee officer from the current requirement
  6 28 that a person who receives contributions for a committee must,
  6 29 not later than 15 days from the date of receipt of the
  6 30 contributions or on demand of the treasurer, render to the
  6 31 treasurer the contributions and an account of the total of all
  6 32 contributions, including the name and address of each person
  6 33 making a contribution in excess of $10.  The bill also amends
  6 34 the Code section to provide that committee funds and committee
  6 35 property cannot be used for the personal benefit of a
  7  1 candidate.  The current prohibition applies only to an
  7  2 officer, member, or associate of the committee.
  7  3    Code section 68A.401 is amended to provide that the board
  7  4 will make reports and statements available on the internet.
  7  5 The Code section is also amended to provide that the candidate
  7  6 of a candidate's committee, or the chairperson of any other
  7  7 committee, is responsible for filing statements and reports
  7  8 under the Code chapter.  A civil penalty is made applicable to
  7  9 the failure to file a disclosure report required under Code
  7 10 section 68A.402.
  7 11    The Code section also eliminates a current requirement that
  7 12 each county commissioner of elections retain statements and
  7 13 reports for a county, city, school, or other political
  7 14 subdivision for at least three years and that statements and
  7 15 reports for county statutory political committees must be
  7 16 retained for five years.
  7 17    Code section 68A.402, subsection 8, is amended to revise
  7 18 the reporting dates for a political committee advocating the
  7 19 passage or defeat of a ballot issue by adding a requirement
  7 20 that in an election year a report must be filed covering the
  7 21 time period from nine days before the election through
  7 22 December 31, on or before January 19 of the next calendar
  7 23 year, and in a nonelection year a report must cover the time
  7 24 period of January 1 through December 31 of the previous
  7 25 calendar year.
  7 26    Code section 68A.406 relates to the restrictions for
  7 27 posting of signs on private property.  The bill amends the
  7 28 Code section by making the following three specific situations
  7 29 where those restrictions do not apply:
  7 30    1.  On election day either on the premises of any polling
  7 31 place or within 300 feet of any outside door of any building
  7 32 affording access to any room where the polls are held, or of
  7 33 any outside door of any building affording access to any
  7 34 hallway, corridor, stairway, or other means of reaching the
  7 35 room where the polls are held.
  8  1    2.  Within 300 feet of an absentee voting site during the
  8  2 hours when absentee ballots are available in the office of the
  8  3 county commissioner of elections.
  8  4    3.  Within 300 feet of a satellite absentee voting station
  8  5 during the hours when absentee ballots are available at the
  8  6 satellite absentee voting station.
  8  7    Code section 68A.501 relates to the escheat of funds from
  8  8 unknown sources to the proper governmental agency.
  8  9 LSB 1255XD 82
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