H.F. 2201 DIVISION I 1 ETHICS LAWS 2 Section 1. Section 68B.2, subsection 9, Code 2011, is 3 amended to read as follows: 4 9. “Gift” means a rendering of anything of value , tangible 5 or intangible, in return for which legal consideration of equal 6 or greater value is not given and received. 7 Sec. 2. Section 68B.22, subsection 4, paragraph n, Code 8 2011, is amended to read as follows: 9 n. Gifts with a value of one hundred dollars or less which 10 are given to a public official or public employee for the 11 public official’s or public employee’s wedding or twenty-fifth 12 or fiftieth wedding anniversary. 13 Sec. 3. Section 68B.22, subsection 4, paragraph s, Code 14 2011, is amended to read as follows: 15 s. Gifts of food, beverage, and entertainment received 16 at a function where every member of the general assembly has 17 been invited to attend, when the function takes place during 18 a regular session of the general assembly on a day when 19 both houses of the general assembly convene during a regular 20 session and members receive a per diem pursuant to section 21 2.10 . A sponsor of a function under this paragraph shall file 22 a registration prior to the function taking place identifying 23 the sponsor and the date, time, and location of the function. 24 The registration shall be filed with the person or persons 25 designated by the secretary of the senate and the chief clerk 26 of the house and with the board. After a function takes place, 27 the sponsor of the function shall file a report disclosing the 28 total amount expended, including in-kind expenditures, on food, 29 beverage, and entertainment for the function. The report shall 30 be filed with the person or persons designated by the secretary 31 of the senate and the chief clerk of the house and with the 32 board within twenty-eight calendar days following the date of 33 the function. For purposes of this paragraph, entertainment 34 includes free or reduced-price tickets to a scheduled event 35 -1- LSB 5070HH (9) 84 tm/rj 1/ 12

H.F. 2201 open to the general public if the general public may obtain the 1 tickets on the same free or reduced-price basis. 2 Sec. 4. Section 68B.22, Code 2011, is amended by adding the 3 following new subsections: 4 NEW SUBSECTION . 9. An official, state employee, candidate 5 for state public office, or a member of the immediate family 6 of an official, state employee, or candidate for state public 7 office who receives a gift from a restricted donor that meets 8 one of the exceptions provided in subsection 4 and that has a 9 value of more than one hundred dollars shall submit a report 10 disclosing the gift to the board in a manner required by the 11 board. The report shall identify the gift, the restricted 12 donor, the value of the gift, the date the gift was received, 13 and any other information required by the board. The receipt 14 of a gift meeting the criteria of subsection 4, paragraph 15 “a” , shall not be reported in the report required under this 16 subsection. 17 NEW SUBSECTION . 10. A member of the general assembly, a 18 legislative employee, or a member of the immediate family of a 19 member of the general assembly or a legislative employee who 20 receives a gift from a restricted donor that meets one of the 21 exceptions provided in subsection 4 and that has a value of 22 more than one hundred dollars shall submit a report disclosing 23 the gift to the general assembly in a manner required by the 24 senate or house of representatives or legislative council, as 25 applicable. The report shall identify the gift, the restricted 26 donor, the value of the gift, the date the gift was received, 27 and any other information required by the senate or house of 28 representatives. The receipt of a gift meeting the criteria of 29 subsection 4, paragraph “a” , shall not be reported in the report 30 required under this subsection. 31 Sec. 5. NEW SECTION . 68B.22A Reporting of gifts and 32 bequests received. 33 1. An agency of state government that receives a gift 34 or bequest with a value of more than one hundred dollars 35 -2- LSB 5070HH (9) 84 tm/rj 2/ 12

H.F. 2201 shall report the gift or bequest to the board and the general 1 assembly’s standing committees on government oversight. A 2 foundation attached to or associated with an agency of state 3 government that receives a gift or bequest that has a value of 4 more than one hundred dollars and is intended to provide moneys 5 for the funding of a gift to an official or state employee 6 shall report the gift or bequest to the board and the general 7 assembly’s standing committees on government oversight. 8 2. By January 31 of each year, the board shall submit 9 to the fiscal services division of the legislative services 10 agency a written report listing all gifts and bequests 11 received during the previous calendar year with a value over 12 one thousand dollars and the purpose for each such gift or 13 bequest. The submission shall also include a listing of all 14 gifts and bequests received by a department from a person if 15 the cumulative value of all gifts and bequests received by the 16 department from the person during the previous calendar year 17 exceeds one thousand dollars, and the board shall include, if 18 available, the purpose for each such gift or bequest. 19 3. The reports on gifts or bequests filed by the state board 20 of regents and the Iowa state fair board pursuant to section 21 8.44 shall be deemed sufficient to comply with the requirements 22 of this section. 23 Sec. 6. Section 68B.23, Code 2011, is amended by adding the 24 following new subsections: 25 NEW SUBSECTION . 3. An official or state employee receiving 26 honoraria as allowed under this section of an amount or with 27 a value of more than one hundred dollars shall file a report 28 disclosing the receipt of honoraria with the board in the 29 manner provided in section 68B.22, subsection 9. 30 NEW SUBSECTION . 4. A member of the general assembly or a 31 legislative employee receiving honoraria as allowed under this 32 section of an amount or with a value of more than one hundred 33 dollars shall file a report disclosing the receipt of honoraria 34 with the senate or house of representatives or legislative 35 -3- LSB 5070HH (9) 84 tm/rj 3/ 12

H.F. 2201 council, as applicable, in the manner provided in section 1 68B.22, subsection 10. 2 Sec. 7. Section 68B.24, Code 2011, is amended to read as 3 follows: 4 68B.24 Loans —— receipt from lobbyists restricted donors 5 prohibited. 6 1. An official, member of the general assembly, state 7 employee, legislative employee, or candidate for state office 8 shall not, directly or indirectly, seek or accept a loan or 9 series of loans from a person who is a lobbyist restricted 10 donor . 11 2. A lobbyist restricted donor shall not, directly or 12 indirectly, offer or make a loan or series of loans to an 13 official, member of the general assembly, state employee, 14 legislative employee, or candidate for state office. A 15 lobbyist restricted donor shall also not, directly or 16 indirectly, join with one or more persons to offer or make a 17 loan or series of loans to an official, member of the general 18 assembly, state employee, legislative employee, or candidate 19 for state office. 20 3. This section shall not apply to loans made in the 21 ordinary course of business. For purposes of this section , 22 a loan is “made in the ordinary course of business” when it 23 is made by a person who is regularly engaged in a business 24 that makes loans to members of the general public and the 25 finance charges and other terms of the loan are the same or 26 substantially similar to the finance charges and loan terms 27 that are available to members of the general public. 28 Sec. 8. REPEAL. Section 8.7, Code Supplement 2011, is 29 repealed. 30 DIVISION II 31 CONFORMING AMENDMENTS 32 Sec. 9. Section 22.7, subsection 52, paragraph d, Code 33 Supplement 2011, is amended to read as follows: 34 d. This subsection does not apply to a report filed with the 35 -4- LSB 5070HH (9) 84 tm/rj 4/ 12

H.F. 2201 ethics and campaign disclosure board pursuant to section 8.7 1 68B.22A . 2 Sec. 10. Section 68B.22, subsection 3, Code 2011, is amended 3 to read as follows: 4 3. A restricted donor may give, and a public official, 5 public employee, or candidate, or the person’s immediate family 6 member, may accept an otherwise prohibited nonmonetary gift or 7 a series of otherwise prohibited nonmonetary gifts and not be 8 in violation of this section if the nonmonetary gift or series 9 of nonmonetary gifts is donated within thirty days to a public 10 body, the department of administrative services, or a bona fide 11 educational or charitable organization, if no part of the net 12 earnings of the educational or charitable organization inures 13 to the benefit of any private stockholder or other individual. 14 All such items donated to the department of administrative 15 services shall be disposed of by assignment to state agencies 16 for official use or by public sale. A person subject to 17 section 8.7 that receives a gift pursuant subject to this 18 subsection and section 68B.22A shall file a report pursuant to 19 section 8.7 68B.22A . 20 Sec. 11. Section 68B.32, subsection 1, Code 2011, is amended 21 to read as follows: 22 1. An Iowa ethics and campaign disclosure board is 23 established as an independent agency. The board shall 24 administer this chapter and set standards for, investigate 25 complaints relating to, and monitor the ethics of officials, 26 employees, lobbyists, and candidates for office in the 27 executive branch of state government. The board shall 28 administer and set standards for, investigate complaints 29 relating to, and monitor the campaign finance practices of 30 candidates for public office. The board shall administer and 31 establish standards for, investigate complaints relating to, 32 and monitor the reporting of gifts and bequests under section 33 8.7 68B.22A . The board shall consist of six members and shall 34 be balanced as to political affiliation as provided in section 35 -5- LSB 5070HH (9) 84 tm/rj 5/ 12

H.F. 2201 69.16 . The members shall be appointed by the governor, subject 1 to confirmation by the senate. 2 Sec. 12. Section 68B.32A, subsections 1, 2, 5, 6, 7, 9, 12, 3 and 19, Code 2011, are amended to read as follows: 4 1. Adopt rules pursuant to chapter 17A and conduct hearings 5 under sections 68B.32B and 68B.32C and chapter 17A , as 6 necessary to carry out the purposes of this chapter , chapter 7 68A , and section 8.7 68B.22A . 8 2. Develop, prescribe, furnish, and distribute any forms 9 necessary for the implementation of the procedures contained 10 in this chapter , chapter 68A , and section 8.7 68B.22A for the 11 filing of reports and statements by persons required to file 12 the reports and statements under this chapter and chapter 68A . 13 5. Receive all registrations and reports that are required 14 to be filed with the board under this chapter or section 8.7 15 68B.22A . The board, upon its own motion, may initiate action, 16 conduct hearings, impose sanctions, and order administrative 17 resolutions relating to reporting requirements under this 18 chapter or section 8.7 68B.22A . 19 6. Prepare and publish a manual setting forth examples 20 of approved uniform systems of accounts and approved methods 21 of disclosure for use by persons required to file statements 22 and reports under this chapter , chapter 68A , and section 8.7 23 68B.22A . The board shall also prepare and publish other 24 educational materials, and any other reports or materials 25 deemed appropriate by the board. The board shall annually 26 provide all officials and state employees with notification 27 of the contents of this chapter , chapter 68A , and section 8.7 28 68B.22A by distributing copies of educational materials to each 29 agency of state government under the board’s jurisdiction. 30 7. Assure that the statements and reports which have been 31 filed in accordance with this chapter , chapter 68A , and section 32 8.7 68B.22A are available for public inspection and copying 33 during the regular office hours of the office in which they are 34 filed and not later than by the end of the day during which a 35 -6- LSB 5070HH (9) 84 tm/rj 6/ 12

H.F. 2201 report or statement was received. Rules adopted relating to 1 public inspection and copying of statements and reports may 2 include a charge for any copying and mailing of the reports 3 and statements, shall provide for the mailing of copies upon 4 the request of any person and upon prior receipt of payment 5 of the costs by the board, and shall prohibit the use of 6 the information copied from reports and statements for any 7 commercial purpose by any person. 8 9. Establish and impose penalties, and recommendations 9 for punishment of persons who are subject to penalties of or 10 punishment by the board or by other bodies, for the failure to 11 comply with the requirements of this chapter , chapter 68A , or 12 section 8.7 68B.22A . 13 12. Establish a procedure for requesting and issuing board 14 advisory opinions to persons subject to the authority of the 15 board under this chapter , chapter 68A , or section 8.7 68B.22A . 16 Local officials and local employees may also seek an advisory 17 opinion concerning the application of the applicable provisions 18 of this chapter . Advice contained in board advisory opinions 19 shall, if followed, constitute a defense to a complaint 20 alleging a violation of this chapter , chapter 68A , section 8.7 21 68B.22A , or rules of the board that is based on the same facts 22 and circumstances. 23 19. Impose penalties upon, or refer matters relating to, 24 persons who provide false information to the board during a 25 board investigation of a potential violation of this chapter , 26 chapter 68A , section 8.7 68B.22A , or rules of the board. The 27 board shall adopt rules to administer this subsection . 28 Sec. 13. Section 68B.32B, subsection 1, Code 2011, is 29 amended to read as follows: 30 1. Any person may file a complaint alleging that a 31 candidate, committee, person holding a state office in the 32 executive branch of state government, employee of the executive 33 branch of state government, or other person has committed a 34 violation of chapter 68A or rules adopted by the board. Any 35 -7- LSB 5070HH (9) 84 tm/rj 7/ 12

H.F. 2201 person may file a complaint alleging that a person holding a 1 state office in the executive branch of state government, an 2 employee of the executive branch of state government, or a 3 lobbyist or a client of a lobbyist of the executive branch of 4 state government has committed a violation of this chapter or 5 rules adopted by the board. Any person may file a complaint 6 alleging a violation of section 8.7 68B.22A or rules adopted 7 by the board. The board shall prescribe and provide forms 8 for purposes of this subsection . A complaint must include 9 the name and address of the complainant, a statement of the 10 facts believed to be true that form the basis of the complaint, 11 including the sources of information and approximate dates of 12 the acts alleged, and a certification by the complainant under 13 penalty of perjury that the facts stated to be true are true to 14 the best of the complainant’s knowledge. 15 Sec. 14. Section 68B.32B, subsection 4, paragraph a, Code 16 2011, is amended to read as follows: 17 a. Facts that would establish a violation of a provision 18 of this chapter , chapter 68A , section 8.7 68B.22A , or rules 19 adopted by the board. 20 Sec. 15. Section 68B.32B, subsections 8 and 9, Code 2011, 21 are amended to read as follows: 22 8. The purpose of an investigation by the board’s staff 23 is to determine whether there is probable cause to believe 24 that there has been a violation of this chapter , chapter 68A , 25 section 8.7 68B.22A , or of rules adopted by the board. To 26 facilitate the conduct of investigations, the board may issue 27 and seek enforcement of subpoenas requiring the attendance and 28 testimony of witnesses and subpoenas requiring the production 29 of books, papers, records, and other real evidence relating to 30 the matter under investigation. Upon the request of the board, 31 an appropriate county attorney or the attorney general shall 32 assist the staff of the board in its investigation. 33 9. If the board determines on the basis of an investigation 34 by board staff that there is probable cause to believe the 35 -8- LSB 5070HH (9) 84 tm/rj 8/ 12

H.F. 2201 existence of facts that would establish a violation of this 1 chapter , chapter 68A , section 8.7 68B.22A , or of rules adopted 2 by the board, the board may issue a statement of charges and 3 notice of a contested case proceeding to the complainant and 4 to the person who is the subject of the complaint, in the 5 manner provided for the issuance of statements of charges 6 under chapter 17A . If the board determines on the basis of 7 an investigation by staff that there is no probable cause to 8 believe that a violation has occurred, the board shall close 9 the investigation, dismiss any related complaint, and the 10 subject of the complaint shall be notified of the dismissal. 11 If the investigation originated from a complaint filed by a 12 person other than the board, the person making the complaint 13 shall also be notified of the dismissal. 14 Sec. 16. Section 68B.32C, subsections 1 and 3, Code 2011, 15 are amended to read as follows: 16 1. Contested case proceedings initiated as a result of 17 the issuance of a statement of charges pursuant to section 18 68B.32B, subsection 9 , shall be conducted in accordance 19 with the requirements of chapter 17A . Clear and convincing 20 evidence shall be required to support a finding that a person 21 has violated this chapter , section 8.7 68B.22A , or any rules 22 adopted by the board pursuant to this chapter . A preponderance 23 of the evidence shall be required to support a finding that a 24 person has violated chapter 68A or any rules adopted by the 25 board pursuant to chapter 68A . The case in support of the 26 statement of charges shall be presented at the hearing by one 27 of the board’s attorneys or staff unless, upon the request 28 of the board, the charges are prosecuted by another legal 29 counsel designated by the attorney general. A person making a 30 complaint under section 68B.32B, subsection 1 , is not a party 31 to contested case proceedings conducted relating to allegations 32 contained in the complaint. 33 3. Upon a finding by the board that the party charged has 34 violated this chapter , chapter 68A , section 8.7 68B.22A , or 35 -9- LSB 5070HH (9) 84 tm/rj 9/ 12

H.F. 2201 rules adopted by the board, the board may impose any penalty 1 provided for by section 68B.32D . Upon a final decision of the 2 board finding that the party charged has not violated this 3 chapter , chapter 68A , section 8.7 68B.22A , or the rules of the 4 board, the complaint shall be dismissed and the party charged 5 and the original complainant, if any, shall be notified. 6 Sec. 17. Section 68B.32D, subsection 1, unnumbered 7 paragraph 1, Code 2011, is amended to read as follows: 8 The board, after a hearing and upon a finding that a 9 violation of this chapter , chapter 68A , section 8.7 68B.22A , 10 or rules adopted by the board has occurred, may do one or more 11 of the following: 12 Sec. 18. Section 68B.32D, subsection 1, paragraphs c, d, and 13 h, Code 2011, are amended to read as follows: 14 c. Issue an order requiring the violator to file any report, 15 statement, or other information as required by this chapter , 16 chapter 68A , section 8.7 68B.22A , or rules adopted by the 17 board. 18 d. Publicly reprimand the violator for violations of this 19 chapter , chapter 68A , section 8.7 68B.22A , or rules adopted by 20 the board in writing and provide a copy of the reprimand to the 21 violator’s appointing authority. 22 h. Issue an order requiring the violator to pay a civil 23 penalty of not more than two thousand dollars for each 24 violation of this chapter , chapter 68A , section 8.7 68B.22A , 25 or rules adopted by the board. 26 EXPLANATION 27 This bill relates to gifts, honoraria, and loans received 28 from restricted donors. The bill is organized by divisions. 29 ETHICS LAWS. Currently, the gift law prohibits public 30 officials, public employees, and candidates, and immediate 31 family members of public officials, public employees, and 32 candidates from accepting or receiving gifts from restricted 33 donors. The gift law includes a list of exceptions that makes 34 an otherwise impermissible gift permissible. 35 -10- LSB 5070HH (9) 84 tm/rj 10/ 12

H.F. 2201 Currently, the term “gift” in Code chapter 68B provides 1 that a gift is the rendering of anything of value in return 2 for which legal consideration of equal or greater value is 3 not given and received. The division adds that a gift can be 4 either tangible or intangible. 5 Currently, one of the exceptions to the gift law is a gift 6 from a restricted donor to a public official or public employee 7 for a wedding or twenty-fifth or fiftieth wedding anniversary. 8 The division limits such permissible gifts to a value of $100 9 or less. 10 Currently, one of the exceptions to the gift law is for 11 food, beverage, and entertainment received at a function where 12 every member of the general assembly has been invited to attend 13 during a regular session of the general assembly. The division 14 changes the required time frame from during a regular session 15 of the general assembly to a day when both houses of the 16 general assembly convene during a regular session and members 17 receive a per diem. As a result, functions would only qualify 18 for the exception if they take place during the first 110 days 19 in the first regular session of a general assembly or during 20 the first 100 days in the second regular session of a general 21 assembly. The division also provides that entertainment may 22 include free or reduced-price tickets to a scheduled event open 23 to the general public if the general public may obtain the 24 tickets on the same free or reduced-price basis. 25 The division adds a reporting requirement to the gift law. 26 If a gift meets one of the exceptions to the gift law and the 27 value of the gift is more than $100, certain recipients must 28 file a report with the Iowa ethics and campaign disclosure 29 board or with the general assembly, as applicable, disclosing 30 the gift. The reporting requirement does not apply to 31 contributions to a candidate or a candidate’s committee. 32 The division requires a public official or public employee 33 receiving permissible honoraria of an amount or with a value 34 of more than $100 to file a report with the Iowa ethics 35 -11- LSB 5070HH (9) 84 tm/rj 11/ 12

H.F. 2201 and campaign disclosure board or the general assembly, as 1 applicable, disclosing the honoraria. 2 Currently, an official, member of the general assembly, 3 state employee, legislative employee, or candidate for state 4 office is prohibited from seeking or accepting a loan from 5 a lobbyist. The division applies the prohibition to all 6 restricted donors. 7 Currently, Code section 8.7 requires all gifts and bequests 8 received by a department or by the governor on behalf of the 9 state to be reported to the ethics and campaign disclosure 10 board and the general assembly’s standing committees on 11 government oversight. The division repeals Code section 8.7 12 and moves the content of the Code section to new Code section 13 68B.22A and makes changes. The division provides that all 14 agencies of state government, including the governor, must 15 report the receipt of gifts and bequests. The division limits 16 the reporting to gifts and bequests with a value of more than 17 $100. The division provides that a foundation attached to or 18 associated with an agency of state government must report gifts 19 and bequests with a value of more than $100 when the gift or 20 bequest is intended to provide moneys for the funding of a gift 21 to an official or state employee. 22 CONFORMING AMENDMENTS. The division makes conforming 23 amendments related to the moving of the contents of Code 24 section 8.7 to new Code section 68B.22A. 25 -12- LSB 5070HH (9) 84 tm/rj 12/ 12