Senate File 207 - Introduced SENATE FILE 207 BY GRONSTAL A BILL FOR An Act requiring certain not-for-profit organizations to file 1 campaign disclosure reports and making penalties applicable. 2 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 3 TLSB 1929SS (6) 84 jr/sc

S.F. 207 Section 1. Section 68A.102, subsection 18, paragraph b, 1 Code 2011, is amended to read as follows: 2 b. An association, lodge, society, cooperative, union, 3 fraternity, sorority, educational institution, civic 4 organization, labor organization, religious organization, or 5 professional organization , or any organization qualifying under 6 26 U.S.C. § 501(c)(4) or § 501(c)(6) as an organization exempt 7 from taxation that accepts contributions in excess of seven 8 hundred fifty dollars in the aggregate, makes expenditures in 9 excess of seven hundred fifty dollars in the aggregate, or 10 incurs indebtedness in excess of seven hundred fifty dollars in 11 the aggregate in any one calendar year to expressly advocate 12 the nomination, election, or defeat of a candidate for public 13 office, or to expressly advocate the passage or defeat of a 14 ballot issue engage in activities related to the nomination, 15 election, or defeat of a candidate for public office or related 16 to issue advocacy . 17 Sec. 2. Section 68A.401A, subsection 1, unnumbered 18 paragraph 1, Code 2011, is amended to read as follows: 19 A political organization that is required to file reports 20 with the internal revenue service , pursuant to 26 U.S.C. § 527, 21 or an organization qualifying under 26 U.S.C. § 501(c)(4) or § 22 501(c)(6) as an organization exempt from taxation shall file 23 a report with the board if that organization does both of the 24 following: 25 Sec. 3. Section 68A.401A, subsection 3, Code 2011, is 26 amended to read as follows: 27 3. a. The board shall by rule establish a procedure for 28 the filing of reports required by this section . To the extent 29 practicable the reporting periods and filing due dates shall be 30 the same as set out in 26 U.S.C. § 527(j)(2). 31 b. The report required from an organization qualifying under 32 26 U.S.C. § 501(c)(4) or § 501(c)(6) as an organization exempt 33 from taxation shall contain the same information as a report 34 prepared pursuant to 26 U.S.C. § 527. 35 -1- LSB 1929SS (6) 84 jr/sc 1/ 2

S.F. 207 EXPLANATION 1 A “501(c)” is a tax-exempt, nonprofit corporation or 2 association. The term is a reference to the United States 3 Internal Revenue Code. A 501(c)(4) organization includes a 4 nonprofit civic league or organization operated exclusively 5 for the promotion of social welfare. A 501(c)(6) organization 6 includes a business league, chamber of commerce, or 7 similar group not organized for profit. This bill amends 8 the definition of “political committee” to include these 9 organizations. 10 The bill also requires organizations qualifying as exempt 11 from taxation under § 501(c)(4) or § 501(c)(6) of the Internal 12 Revenue Code to file reports with the ethics and campaign 13 finance disclosure board if they participate in Iowa campaigns, 14 engage in issue advocacy, or expect to receive $25,000 or more 15 in gross receipts in a year. 16 The report for a § 501(c)(4) or § 501(c)(6) organization must 17 contain the same information as a report prepared pursuant to 18 26 U.S.C. § 527, relating to political organizations. 19 As provided in Code section 68A.701, a willful violation of 20 any provision of the campaign finance Code chapter is a serious 21 misdemeanor punishable by confinement for up to one year and 22 a fine of at least $315 but not more than $1,875. A variety 23 of civil remedies are also available in Code section 68B.32D 24 for a violation of Code chapter 68A or rules of the ethics and 25 campaign disclosure board, ranging from a reprimand to a civil 26 penalty of not more than $2,000. 27 -2- LSB 1929SS (6) 84 jr/sc 2/ 2