S.F. _____ H.F. _____ Section 1. Section 68A.102, subsection 18, unnumbered 1 paragraph 1, Code 2009, is amended to read as follows: 2 “Political committee” means either any of the following: 3 Sec. 2. Section 68A.102, subsection 18, Code 2009, is 4 amended by adding the following new paragraph: 5 NEW PARAGRAPH . c. A person, other than an individual, 6 that accepts contributions in excess of seven hundred fifty 7 dollars in the aggregate, makes expenditures in excess of seven 8 hundred fifty dollars in the aggregate, or incurs indebtedness 9 in excess of seven hundred fifty dollars in the aggregate in 10 any one calendar year to expressly advocate that an individual 11 should or should not seek election to a public office prior 12 to the individual becoming a candidate as defined in section 13 68A.102, subsection 4. 14 Sec. 3. Section 68A.202, subsection 2, Code 2009, is amended 15 to read as follows: 16 2. a. A political committee shall not be established to 17 expressly advocate the nomination, election, or defeat of only 18 one candidate for office. However, a political committee may 19 be established to expressly advocate the passage or defeat of 20 approval of a single judge standing for retention. A permanent 21 organization, as defined in section 68A.402, subsection 9, may 22 make a one-time contribution to only one candidate for office 23 in excess of seven hundred fifty dollars. 24 b. The prohibition in paragraph “a” does not apply to a 25 political committee described in section 68A.102, subsection 26 18, paragraph “c” , until the individual becomes a candidate for 27 public office. A political committee organized to expressly 28 advocate that an individual should or should not seek election 29 to a public office prior to the individual becoming a candidate 30 for public office shall be dissolved when the individual 31 becomes a candidate for public office. 32 Sec. 4. Section 68A.304, Code 2009, is amended by adding the 33 following new subsection: 34 NEW SUBSECTION . 4. The board shall adopt rules pursuant to 35 -1- LSB 5239DP (8) 83 jr/sc 1/ 4

S.F. _____ H.F. _____ chapter 17A defining “fair market value” for purposes of this 1 section. 2 Sec. 5. Section 68A.402, subsection 3, Code Supplement 3 2009, is amended by adding the following new paragraph: 4 NEW PARAGRAPH . c. Only a candidate who is eligible to 5 participate in a runoff election is required to file a report 6 five days before the runoff election. 7 Sec. 6. Section 68A.402, subsection 9, Code Supplement 8 2009, is amended to read as follows: 9 9. Permanent organizations. A permanent organization 10 temporarily engaging in activity described in section 68A.102, 11 subsection 18, shall organize a political committee and 12 shall keep the funds relating to that political activity 13 segregated from its operating funds. The political committee 14 shall file reports on the appropriate due dates as required 15 by this section. The reports filed under this subsection 16 shall identify the source of the original funds used 17 for a contribution made to a candidate or a candidate’s 18 committee committee organized under this chapter . When the 19 permanent organization ceases to be involved in the political 20 activity, the permanent organization shall dissolve the 21 political committee. As used in this subsection, “permanent 22 organization” means an organization that is continuing, stable, 23 and enduring, and was originally organized for purposes other 24 than engaging in election activities. 25 Sec. 7. Section 68A.405, subsection 2, paragraph b, Code 26 Supplement 2009, is amended to read as follows: 27 b. Small items upon which the inclusion of the statement 28 is impracticable including , but not limited to , campaign signs 29 as provided in section 68A.406, subsection 3 , bumper stickers, 30 pins, buttons, pens, political business cards, and matchbooks. 31 Sec. 8. Section 68A.503, subsection 2, paragraph d, Code 32 Supplement 2009, is amended to read as follows: 33 d. The board shall adopt rules prohibiting the owner, 34 publisher, or editor of a sham newspaper from using the 35 -2- LSB 5239DP (8) 83 jr/sc 2/ 4

S.F. _____ H.F. _____ sham newspaper to promote in any way the candidacy of such 1 a any person for any public office. As used in this paragraph, 2 “sham newspaper” means a newspaper that does not meet the 3 requirements set forth in section 618.3 and “owner” means a 4 person having an ownership interest exceeding ten percent of 5 the equity or profits of the newspaper. 6 EXPLANATION 7 This bill makes a number of changes to Code chapter 68A 8 relating to campaign finance requirements and reporting. 9 The bill revises the definition of “political committee” to 10 include any corporation, government or governmental subdivision 11 or agency, business trust, estate, trust, partnership 12 or association, labor union, or any other legal entity 13 which accepts contributions, makes expenditures, or incurs 14 indebtedness in excess of $750 in any one calendar year, to 15 expressly advocate that an individual should or should not seek 16 election to a public office prior to the individual becoming a 17 candidate. 18 Code section 68A.202, subsection 2, currently provides that 19 a PAC cannot expressly advocate the nomination, election, or 20 defeat of only one candidate for office, but a PAC may be 21 established to expressly advocate the passage or defeat of 22 approval of a single judge standing for retention. The bill 23 amends this section to apply the prohibition against advocacy 24 only to actual candidates for election as defined in Code 25 section 68A.102. 26 The bill provides the ethics and campaign finance disclosure 27 board with rulemaking authority to define the term “fair market 28 value” as that term relates to the disposition of campaign 29 property. 30 The bill provides that only a candidate actually 31 participating in a runoff election is required to file a report 32 five days before the runoff election. 33 Code section 68A.402 in part requires that permanent 34 organizations temporarily engaging in certain political 35 -3- LSB 5239DP (8) 83 jr/sc 3/ 4

S.F. _____ H.F. _____ activity shall organize a political committee. The bill 1 provides that contributions to any committee constitutes 2 political activity and must be reported. 3 Code section 68A.503 prohibits the owner, publisher, or 4 editor of a sham newspaper from using the sham newspaper to 5 promote that person’s own candidacy for public office. The 6 bill extends that prohibition to include the candidacy of any 7 person. 8 -4- LSB 5239DP (8) 83 jr/sc 4/ 4