Senate Study Bill 3077 - Introduced SENATE/HOUSE FILE _____ BY (PROPOSED ETHICS AND CAMPAIGN DISCLOSURE BOARD BILL) A BILL FOR An Act relating to the procedures and duties of the Iowa ethics 1 and campaign disclosure board relating to campaign finance 2 and to county redistricting and making penalties applicable. 3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 4 TLSB 5319DP (9) 84 jr/sc
S.F. _____ H.F. _____ Section 1. Section 8.7, Code Supplement 2011, is amended to 1 read as follows: 2 8.7 Reporting of gifts and bequests received. 3 All gifts and bequests received by a department or accepted 4 by the governor on behalf of the state shall be reported in an 5 electronic format to the Iowa ethics and campaign disclosure 6 board and the general assembly’s standing committees on 7 government oversight. The reports shall be filed no later than 8 the tenth day of the month for all gifts and bequests received 9 in the previous month. The ethics and campaign disclosure 10 board shall, by January 31 of each year, submit to the fiscal 11 services division of the legislative services agency a written 12 report listing all gifts and bequests received during the 13 previous calendar year with a value over one thousand dollars 14 and the purpose for each such gift or bequest. The submission 15 shall also include a listing of all gifts and bequests received 16 by a department from a person if the cumulative value of all 17 gifts and bequests received by the department from the person 18 during the previous calendar year exceeds one thousand dollars, 19 and the ethics and campaign disclosure board shall include, if 20 available, the purpose for each such gift or bequest. However, 21 the reports on gifts or bequests filed by the state board of 22 regents and the Iowa state fair board pursuant to section 8.44 23 shall be deemed sufficient to comply with the requirements of 24 this section . 25 Sec. 2. Section 68A.102, Code 2011, is amended by adding the 26 following new subsection: 27 NEW SUBSECTION . 5A. “Charitable organization” means an 28 organization that is described in section 501(c)(3) of the 29 Internal Revenue Code that is exempt from taxation under 30 section 501(a) of the Internal Revenue Code. 31 Sec. 3. Section 68A.201, subsection 1, Code 2011, is amended 32 to read as follows: 33 1. a. Every committee, as defined in this chapter , shall 34 file a statement of organization within ten days from the date 35 -1- LSB 5319DP (9) 84 jr/sc 1/ 8
S.F. _____ H.F. _____ of its organization. Unless formal organization has previously 1 occurred, a committee is deemed to have organized as of the 2 date that committee transactions exceed the financial activity 3 threshold established in section 68A.102, subsection 5 or 4 18 . If committee transactions exceed the financial activity 5 threshold prior to the due date for filing a disclosure report 6 as established under section 68A.402 , the committee shall file 7 a disclosure report whether or not a statement of organization 8 has been filed by the committee. 9 b. A person that makes one or more independent expenditures 10 and files all statements and reports required by section 11 68A.404 shall not be required to organize a committee or file 12 the statement of organization required under this section. 13 Sec. 4. Section 68A.401A, subsection 1, unnumbered 14 paragraph 1, Code 2011, is amended to read as follows: 15 A political organization that is required to file reports 16 with the internal revenue service, pursuant to 26 U.S.C. § 527, 17 Any person, other than a committee filing reports under section 18 68A.402 or a person making an independent expenditure under 19 section 68A.404, shall file , in electronic format, a report 20 with the board if that organization person does both of the 21 following: 22 Sec. 5. Section 68A.401A, subsection 2, paragraph b, Code 23 2011, is amended to read as follows: 24 b. The name and address, and, in the case of an individual, 25 the occupation and name of employer of such individual, of 26 all contributors which contributed an aggregate amount of two 27 hundred dollars or more to the organization person making or 28 disseminating the communication during the calendar year and 29 the amount and date of the contribution. 30 Sec. 6. Section 68A.401A, subsection 4, Code 2011, is 31 amended to read as follows: 32 4. The term “issue advocacy” means any print, radio, 33 televised, telephonic, or electronic communication in any 34 form or content, which is disseminated to the general public 35 -2- LSB 5319DP (9) 84 jr/sc 2/ 8
S.F. _____ H.F. _____ or a segment of the general public, that refers to a clearly 1 identified candidate for the general assembly or statewide 2 office . 3 Sec. 7. Section 68A.404, subsection 2, paragraph a, Code 4 2011, is amended to read as follows: 5 a. An entity A person , other than an individual or 6 individuals, shall not make an independent expenditure or 7 disburse funds from its treasury to pay for, in whole or in 8 part, an independent expenditure made by another person without 9 the authorization of a majority of the entity’s person’s board 10 of directors, executive council, or similar organizational 11 leadership body of the use of treasury funds for an independent 12 expenditure involving a candidate or ballot issue committee. 13 Such authorization must occur in the same calendar year in 14 which the independent expenditure is incurred. 15 Sec. 8. Section 68A.404, subsection 3, paragraphs a and b, 16 Code 2011, are amended to read as follows: 17 a. Subject to paragraph “b” , the person filing the 18 independent expenditure statement shall file reports under 19 sections 68A.402 and 68A.402A . An initial report shall 20 be filed at the same time as the independent expenditure 21 statement. Subsequent reports shall be filed according to 22 the same schedule as the office or election to which the 23 independent expenditure was directed. 24 (1) A supplemental report shall be filed on the same dates 25 as in section 68A.402, subsection 2 , paragraph “b” , if the 26 person making the independent expenditure either raises or 27 expends more than one thousand dollars. 28 (2) A report filed as a result of this paragraph “a” shall 29 not require the identification of individual members who 30 pay dues to a labor union, organization, or association, or 31 individual stockholders of a business corporation. A report 32 filed as a result of this paragraph “a” shall not require the 33 disclosure of any donor or other source of funding to the 34 person making the independent expenditure except when the 35 -3- LSB 5319DP (9) 84 jr/sc 3/ 8
S.F. _____ H.F. _____ donation or source of funding, or a portion of the donation or 1 source of funding, was provided for the purpose of furthering 2 the independent expenditure include the name and address of 3 each person who has made one or more contributions to the 4 person making the independent expenditure when the aggregate 5 amount in a calendar year is two hundred dollars or more, and 6 the amount and date of each contribution . 7 b. This section does not apply to a candidate, candidate’s 8 committee, state statutory political committee, county 9 statutory political committee, or a political committee. 10 This section does not apply to a federal committee or an 11 out-of-state committee that makes an independent expenditure. 12 A person that makes one or more independent expenditures and 13 files all statements and reports required by this section shall 14 not be required to organize a committee or file the statement 15 of organization required under section 68A.201. 16 Sec. 9. Section 68A.404, subsection 5, paragraph g, Code 17 2011, is amended to read as follows: 18 g. A certification by an officer of the corporation 19 representing the person, if the person is other than an 20 individual or individuals, that the board of directors, 21 executive council, or similar organizational leadership body 22 expressly authorized the independent expenditure or use of 23 treasury funds for the independent expenditure by resolution 24 or other affirmative action within the calendar year when the 25 independent expenditure was incurred. 26 Sec. 10. Section 68A.405, subsection 1, paragraph a, 27 subparagraph (3), Code 2011, is amended to read as follows: 28 (3) “Published material” means any newspaper, magazine, 29 shopper, outdoor advertising facility, poster, direct mailing, 30 brochure, internet website, campaign sign, or any other form 31 of printed general public political advertising. “Published 32 material” includes television, radio, video, or motion picture 33 advertising , or automated or live telephone calls . 34 Sec. 11. Section 68A.405, subsection 2, paragraph a, Code 35 -4- LSB 5319DP (9) 84 jr/sc 4/ 8
S.F. _____ H.F. _____ 2011, is amended to read as follows: 1 a. The editorials or news articles of a newspaper, magazine, 2 television station, radio station, or other print or electronic 3 media that are not paid political advertisements. 4 Sec. 12. Section 68A.405, subsection 3, Code 2011, is 5 amended to read as follows: 6 3. For television, video, or motion picture advertising, 7 the attribution statement shall be displayed on the screen 8 in a clearly readable manner for at least four seconds. For 9 radio advertising or automated or live telephone calls, the 10 attribution statement shall be clearly enunciated. 11 Sec. 13. NEW SECTION . 68B.22A Reporting of gifts from 12 restricted donors. 13 1. All officials and employees of the executive branch of 14 the state of Iowa shall report to the board in an electronic 15 format any gift or series of gifts from a restricted donor that 16 exceed one hundred dollars in the aggregate in a calendar year. 17 2. The report shall be filed no later than the tenth day 18 of the month for gifts received by the official or employee or 19 that person’s immediate family member in the previous month. 20 3. The report shall include the name of the official or 21 employee, the person’s position or title with the executive 22 branch, the name and address of the restricted donor, a 23 description of the gift, the estimated value of the gift, and 24 the exception in section 68B.22, subsection 4, that allows the 25 official or employee to accept, directly or indirectly, the 26 gift. 27 4. The report shall include the name of any open candidate’s 28 committee established for the person. Campaign contributions 29 shall not be included in the report if such contributions are 30 disclosed on the candidate’s committee’s disclosure reports. 31 Sec. 14. Section 331.210A, subsection 2, paragraph e, Code 32 2011, is amended by adding the following new subparagraph: 33 NEW SUBPARAGRAPH . (4) Members of the temporary county 34 redistricting commission shall retain all of their work 35 -5- LSB 5319DP (9) 84 jr/sc 5/ 8
S.F. _____ H.F. _____ product relating to the redistricting process or plan until the 1 state commissioner of elections has approved the plan and any 2 complaint alleging the plan was drawn for improper political 3 reasons has been resolved. Work product includes but is not 4 limited to any written or electronic communication with any 5 person regarding the redistricting process or plan. 6 EXPLANATION 7 This bill relates to the duties of the Iowa ethics and 8 campaign disclosure board. 9 The bill requires that reporting of all gifts and bequests 10 received by a state department or the governor on behalf of the 11 state must be reported in an electronic format. Currently, the 12 reports are required to be made to the board and the general 13 assembly’s standing committees on government oversight. The 14 bill also provides that these reports shall be filed no later 15 than the tenth day of the month for all gifts and bequests 16 received in the previous month. 17 The bill defines “charitable organization”, for purposes of 18 campaign finance, to be an organization that is described in 19 section 501(c)(3) of the Internal Revenue Code and is exempt 20 from taxation under section 501(a) of the Internal Revenue 21 Code. 22 The bill provides that a person that makes independent 23 campaign expenditures and files all required statements and 24 reports is not required to organize a committee or file a 25 statement of organization. 26 The bill requires that any person, other than a political 27 committee filing under Code section 68A.402 or a person making 28 an independent expenditure under Code section 68A.404, must 29 file a report with the board if that organization engages in 30 issue advocacy, and receives or expects to receive $25,000. 31 The bill revises current provisions relating to reporting 32 independent expenditures. The bill requires that reports be 33 filed electronically and must include the name and address 34 of each person who has made one or more contributions to the 35 -6- LSB 5319DP (9) 84 jr/sc 6/ 8
S.F. _____ H.F. _____ person making the independent expenditure when the aggregate 1 amount in a calendar year is $200 or more, and the amount and 2 date of each contribution. 3 Current law requires that corporate officials must certify 4 that the governing body authorized an independent expenditure; 5 the bill expands this requirement to other entities, but not 6 individuals. 7 The bill amends the definition of “published material” to 8 include radio advertising or automated or live telephone calls. 9 The bill requires audio attribution statements for radio 10 advertising or automated or live telephone calls and requires 11 the statements to be clearly enunciated. 12 The bill enacts new Code section 68B.22A, which provides 13 that all officials and employees of the executive branch, or 14 that person’s immediate family members, report to the board any 15 gift or series of gifts from a restricted donor that exceed 16 $100 in the aggregate in a calendar year. That report must 17 include estimated value of the gift and the exception in Code 18 section 68B.22 that allows the official or employee or family 19 member to accept the gift. The bill provides that the report 20 shall include the name of any open candidate’s committee 21 established for the person and provides that contributions 22 shall not be included if the contributions are disclosed on the 23 candidate’s committee’s disclosure reports. 24 Relating to the review of county redistricting plans, the 25 bill requires that a temporary county redistricting commission 26 retain all of its work product relating to the redistricting 27 process or plan until the state commissioner of elections has 28 approved the plan and any complaint alleging the plan was drawn 29 for improper political reasons has been resolved. 30 As provided in Code section 68A.701, a willful violation of 31 any provision of the campaign finance Code chapter is a serious 32 misdemeanor punishable by confinement for up to one year and 33 a fine of at least $315 but not more than $1,875. A variety 34 of civil remedies are also available in Code section 68B.32D 35 -7- LSB 5319DP (9) 84 jr/sc 7/ 8
S.F. _____ H.F. _____ for a violation of Code chapter 68A or rules of the ethics and 1 campaign disclosure board, ranging from a reprimand to a civil 2 penalty of not more than $2,000. 3 -8- LSB 5319DP (9) 84 jr/sc 8/ 8