House Study Bill 612 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 procedures and requirements 2 and providing an effective date. 3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 4 TLSB 5459DP 82 5 jr/rj/14 PAG LIN 1 1 Section 1. Section 68A.101, Code 2007, is amended to read 1 2 as follows: 1 3 68A.101 CITATION AND ADMINISTRATION. 1 4 This chapter may be cited as the "Campaign Disclosure == 1 5 Income Tax Checkoff Act". 1 6 This chapter shall be administered by the Iowa ethics and 1 7 campaign disclosure board as provided in sections 68B.32, 1 8 68B.32A, 68B.32B, 68B.32C, and 68B.32D. 1 9 Sec. 2. Section 68A.201, subsection 5, Code Supplement 1 10 2007, is amended by striking the subsection. 1 11 Sec. 3. NEW SECTION. 68A.201A FILING BY OUT=OF=STATE AND 1 12 FEDERAL COMMITTEES. 1 13 1. When either a committee or organization not organized 1 14 as a committee under section 68A.201 makes a contribution to a 1 15 committee organized in Iowa, that committee or organization 1 16 shall disclose each contribution in excess of fifty dollars to 1 17 the board. 1 18 2. A committee or organization not organized as a 1 19 committee under section 68A.201 that is not registered and 1 20 filing full disclosure reports of all financial activities 1 21 with the federal election commission or another state's 1 22 disclosure commission shall register and file full disclosure 1 23 reports with the board pursuant to this chapter. The 1 24 committee or organization shall either appoint an eligible 1 25 Iowa elector as committee or organization treasurer, or shall 1 26 maintain all committee funds in an account in a financial 1 27 institution located in Iowa. 1 28 3. A committee that is currently filing a disclosure 1 29 report in another jurisdiction shall either file a statement 1 30 of organization under section 68A.201, subsections 1 and 2, 1 31 and file disclosure reports under section 68A.402, or shall 1 32 file one copy of a verified statement with the board within 1 33 fifteen days of the contribution being made. 1 34 4. The verified statement shall be on forms prescribed by 1 35 the board and shall attest that the committee is filing 2 1 reports with the federal election commission or in a 2 2 jurisdiction with reporting requirements which are 2 3 substantially similar to those of this chapter, and that the 2 4 contribution is made from an account that does not accept 2 5 contributions that would be in violation of section 68A.503. 2 6 5. The verified statement shall include the complete name, 2 7 address, and telephone number of the contributing committee, 2 8 the state or federal jurisdiction under which it is registered 2 9 or operates, the identification of any parent entity or other 2 10 affiliates or sponsors, its purpose, the name and address of 2 11 an Iowa resident authorized to receive service of original 2 12 notice, the name and address of the receiving committee, the 2 13 amount of the cash or in=kind contribution, and the date the 2 14 contribution was made. 2 15 Sec. 4. Section 68A.303, subsection 6, Code 2007, is 2 16 amended to read as follows: 2 17 6.An individual or a political committeeA person shall 2 18 not knowingly make transfers or contributions to a candidate 2 19 or candidate's committee for the purpose of transferring the 2 20 funds to another candidate or candidate's committee to avoid 2 21 the disclosure of the source of the funds pursuant to this 2 22 chapter. A candidate or candidate's committee shall not 2 23 knowingly accept transfers or contributions froman individual 2 24 or political committeeany person for the purpose of 2 25 transferring funds to another candidate or candidate's 2 26 committee as prohibited by this subsection. A candidate or 2 27 candidate's committee shall not accept transfers or 2 28 contributions which have been transferred to another candidate 2 29 or candidate's committee as prohibited by this subsection. 2 30 The board shall notify candidates of the prohibition of such 2 31 transfers and contributions under this subsection. 2 32 Sec. 5. Section 68A.402, subsection 1, Code Supplement 2 33 2007, is amended to read as follows: 2 34 1. FILING METHODS. Each committee shall file with the 2 35 board reports disclosing information required under this 3 1 section on forms prescribed by rule. Reports shall be filed 3 2 on or before the required due dates by using any of the 3 3 following methods: mail bearing a United States postal 3 4 service postmark, hand=delivery, facsimile transmission, 3 5 electronic mail attachment, or electronic filing as prescribed 3 6 by rule. Any report that is required to be filed five days or 3 7 less prior to an election must be physically received by the 3 8 board to be considered timely filed. For purposes of this 3 9 section, "physically received" means the report is either 3 10 electronically filed using the board's electronic filing 3 11 system or is received by the board prior to 4:30 p.m. on the 3 12 report due date. 3 13 Sec. 6. Section 68A.402A, subsection 1, paragraph g, Code 3 14 2007, is amended to read as follows: 3 15 g. Disbursements made to a consultant, subvendor, or other 3 16 third party and disbursements made by the consultant, 3 17 subvendor, or other third party during the reporting period 3 18 disclosing the name and address of the recipient, amount, 3 19 purpose, and date. As used in this paragraph, "subvendor" 3 20 means a third party who makes an expenditure on behalf of a 3 21 candidate or a committee. 3 22 Sec. 7. Section 68A.404, subsection 2, paragraph a, Code 3 23 2007, is amended to read as follows: 3 24 a. The requirement to file an independent expenditure 3 25 statement under this section does not by itself mean that the 3 26 person filing the independent expenditure statement is 3 27 required to register and file reports under sections 68A.201, 3 28 68A.201A, and 68A.402. 3 29 Sec. 8. EFFECTIVE DATE. The section of this Act amending 3 30 section 68A.402, being deemed of immediate importance, takes 3 31 effect upon enactment. 3 32 EXPLANATION 3 33 This bill makes a number of technical changes to Iowa's 3 34 campaign disclosure law. The bill moves requirements dealing 3 35 with required filings by out=of=state and federal committees 4 1 into its own Code section. 4 2 The bill amends current restrictions concerning transfer of 4 3 contributions between candidates or candidate committees. 4 4 Under current law, an individual or a political committee 4 5 cannot knowingly make or accept transfers or contributions to 4 6 a candidate or candidate's committee for the purpose of 4 7 transferring the funds to another candidate or candidate's 4 8 committee to avoid the disclosure of the source of the funds. 4 9 The bill substitutes the term "person" in lieu of the phrase 4 10 "individual or a political committee". 4 11 The bill also revises a provision relating to the physical 4 12 receipt of reports that must be filed five days before the 4 13 election; that change establishes that physical receipt of the 4 14 report is required for any reports required to be filed less 4 15 than five days before the election. This provision is made 4 16 effective upon enactment. 4 17 The bill expands disbursement reporting requirements 4 18 relating to consultants to include a subvendor or other third 4 19 party. 4 20 LSB 5459DP 82 4 21 jr/rj/14