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 and campaign disclosure board relating to campaign finance and to county redistricting and making penalties applicable.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  Section 8.7, Code Supplement 2011, is amended to read as follows:
   8.7  Reporting of gifts and bequests received.
   All gifts and bequests received by a department or accepted by the governor on behalf of the state shall be reported
 
in an electronic format to the Iowa ethics and campaign disclosure board and the general assembly’s standing committees on government oversight.

The reports shall be filed no later than the tenth day of the month for all gifts and bequests received in the previous month. The ethics and campaign disclosure board shall, by January 31 of each year, submit to the fiscal services division of the legislative services agency a written report listing all gifts and bequests received during the previous calendar year with a value over one thousand dollars and the purpose for each such gift or bequest. The submission shall also include a listing of all gifts and bequests received by a department from a person if the cumulative value of all gifts and bequests received by the department from the person during the previous calendar year exceeds one thousand dollars, and the ethics and campaign disclosure board shall include, if available, the purpose for each such gift or bequest. However, the reports on gifts or bequests filed by the state board of regents and the Iowa state fair board pursuant to section 8.44 shall be deemed sufficient to comply with the requirements of this section.
    Sec. 2.  Section 68A.102, Code 2011, is amended by adding the following new subsection:
   NEW SUBSECTION.  5A.  “Charitable organization” means an organization that is described in section 501(c)(3) of the Internal Revenue Code that is exempt from taxation under section 501(a) of the Internal Revenue Code.
    Sec. 3.  Section 68A.201, subsection 1, Code 2011, is amended to read as follows:
   1.
  a.  Every committee, as defined in this chapter, shall file a statement of organization within ten days from the date of its organization. Unless formal organization has previously occurred, a committee is deemed to have organized as of the date that committee transactions exceed the financial activity threshold established in section 68A.102, subsection 5 or 18. If committee transactions exceed the financial activity threshold prior to the due date for filing a disclosure report as established under section 68A.402, the committee shall file a disclosure report whether or not a statement of organization has been filed by the committee.
   b.  A person that makes one or more independent expenditures and files all statements and reports required by section 68A.404 shall not be required to organize a committee or file the statement of organization required under this section.
    Sec. 4.  Section 68A.401A, subsection 1, unnumbered paragraph 1, Code 2011, is amended to read as follows:
   A political organization that is required to file reports with the internal revenue service, pursuant to 26 U.S.C. § 527,
 
Any person, other than a committee filing reports under section 68A.402 or a person making an independent expenditure under section 68A.404, shall file, in electronic format, a report with the board if that organization
 
person does both of the following:
    Sec. 5.  Section 68A.401A, subsection 2, paragraph b, Code 2011, is amended to read as follows:
   b.  The name and address, and, in the case of an individual, the occupation and name of employer of such individual, of all contributors which contributed an aggregate amount of two hundred dollars or more to the organization
 
person making or disseminating the communication during the calendar year and the amount and date of the contribution.
    Sec. 6.  Section 68A.401A, subsection 4, Code 2011, is amended to read as follows:
   4.  The term “issue advocacy” means any print, radio, televised, telephonic, or electronic communication in any form or content, which is disseminated to the general public or a segment of the general public, that refers to a clearly identified candidate for the general assembly or statewide office.
    Sec. 7.  Section 68A.404, subsection 2, paragraph a, Code 2011, is amended to read as follows:
   a.  An entity
 
A person, other than an individual or individuals, shall not make an independent expenditure or disburse funds from its treasury to pay for, in whole or in part, an independent expenditure made by another person without the authorization of a majority of the entity’s
 
person’s board of directors, executive council, or similar organizational leadership body of the use of treasury funds for an independent expenditure involving a candidate or ballot issue committee. Such authorization must occur in the same calendar year in which the independent expenditure is incurred.
    Sec. 8.  Section 68A.404, subsection 3, paragraphs a and b, Code 2011, are amended to read as follows:
   a.  Subject to paragraph “b”, the person filing the independent expenditure statement shall file reports under sections 68A.402 and 68A.402A. An initial report shall be filed at the same time as the independent expenditure statement. Subsequent reports shall be filed according to the same schedule as the office or election to which the independent expenditure was directed.
   (1)  A supplemental report shall be filed on the same dates as in section 68A.402, subsection 2, paragraph “b”, if the person making the independent expenditure either raises or expends more than one thousand dollars.
   (2)  A report filed as a result of this paragraph “a” shall not require the identification of individual members who pay dues to a labor union, organization, or association, or individual stockholders of a business corporation. A report filed as a result of this paragraph “a” shall not require the disclosure of any donor or other source of funding to the person making the independent expenditure except when the donation or source of funding, or a portion of the donation or source of funding, was provided for the purpose of furthering the independent expenditure
 
include the name and address of each person who has made one or more contributions to the person making the independent expenditure when the aggregate amount in a calendar year is two hundred dollars or more, and the amount and date of each contribution.
   b.  This section does not apply to a candidate, candidate’s committee, state statutory political committee, county statutory political committee, or a political committee. This section does not apply to a federal committee or an out-of-state committee that makes an independent expenditure.

A person that makes one or more independent expenditures and files all statements and reports required by this section shall not be required to organize a committee or file the statement of organization required under section 68A.201.
    Sec. 9.  Section 68A.404, subsection 5, paragraph g, Code 2011, is amended to read as follows:
   g.  A certification by an officer of the corporation
 
representing the person, if the person is other than an individual or individuals, that the board of directors, executive council, or similar organizational leadership body expressly authorized the independent expenditure or use of treasury funds for the independent expenditure by resolution or other affirmative action within the calendar year when the independent expenditure was incurred.
    Sec. 10.  Section 68A.405, subsection 1, paragraph a, subparagraph (3), Code 2011, is amended to read as follows:
   (3)  “Published material” means any newspaper, magazine, shopper, outdoor advertising facility, poster, direct mailing, brochure, internet website, campaign sign, or any other form of printed general public political advertising. “Published material” includes television,
 
radio, video, or motion picture advertising, or automated or live telephone calls.
    Sec. 11.  Section 68A.405, subsection 2, paragraph a, Code 2011, is amended to read as follows:
   a.  The editorials or news articles of a newspaper, magazine, television station,
 
radio station, or other print or electronic media that are not paid political advertisements.
    Sec. 12.  Section 68A.405, subsection 3, Code 2011, is amended to read as follows:
   3.  For television, video, or motion picture advertising, the attribution statement shall be displayed on the screen in a clearly readable manner for at least four seconds.

For radio advertising or automated or live telephone calls, the attribution statement shall be clearly enunciated.
    Sec. 13.  NEW SECTION.  68B.22A  Reporting of gifts from restricted donors.
   1.  All officials and employees of the executive branch of the state of Iowa shall report to the board in an electronic format any gift or series of gifts from a restricted donor that exceed one hundred dollars in the aggregate in a calendar year.
   2.  The report shall be filed no later than the tenth day of the month for gifts received by the official or employee or that person’s immediate family member in the previous month.
   3.  The report shall include the name of the official or employee, the person’s position or title with the executive branch, the name and address of the restricted donor, a description of the gift, the estimated value of the gift, and the exception in section 68B.22, subsection 4, that allows the official or employee to accept, directly or indirectly, the gift.
   4.  The report shall include the name of any open candidate’s committee established for the person. Campaign contributions shall not be included in the report if such contributions are disclosed on the candidate’s committee’s disclosure reports.
    Sec. 14.  Section 331.210A, subsection 2, paragraph e, Code 2011, is amended by adding the following new subparagraph:
   NEW SUBPARAGRAPH.  (4)  Members of the temporary county redistricting commission shall retain all of their work product relating to the redistricting process or plan until the state commissioner of elections has approved the plan and any complaint alleging the plan was drawn for improper political reasons has been resolved. Work product includes but is not limited to any written or electronic communication with any person regarding the redistricting process or plan.
EXPLANATION
   This bill relates to the duties of the Iowa ethics and campaign disclosure board.
   The bill requires that reporting of all gifts and bequests received by a state department or the governor on behalf of the state must be reported in an electronic format. Currently, the reports are required to be made to the board and the general assembly’s standing committees on government oversight. The bill also provides that these reports shall be filed no later than the tenth day of the month for all gifts and bequests received in the previous month.
   The bill defines “charitable organization”, for purposes of campaign finance, to be an organization that is described in section 501(c)(3) of the Internal Revenue Code and is exempt from taxation under section 501(a) of the Internal Revenue Code.
   The bill provides that a person that makes independent campaign expenditures and files all required statements and reports is not required to organize a committee or file a statement of organization.
   The bill requires that any person, other than a political committee filing under Code section 68A.402 or a person making an independent expenditure under Code section 68A.404, must file a report with the board if that organization engages in issue advocacy, and receives or expects to receive $25,000.
   The bill revises current provisions relating to reporting independent expenditures. The bill requires that reports be filed electronically and must include the name and address of each person who has made one or more contributions to the person making the independent expenditure when the aggregate amount in a calendar year is $200 or more, and the amount and date of each contribution.
   Current law requires that corporate officials must certify that the governing body authorized an independent expenditure; the bill expands this requirement to other entities, but not individuals.
   The bill amends the definition of “published material” to include radio advertising or automated or live telephone calls. The bill requires audio attribution statements for radio advertising or automated or live telephone calls and requires the statements to be clearly enunciated.
   The bill enacts new Code section 68B.22A, which provides that all officials and employees of the executive branch, or that person’s immediate family members, report to the board any gift or series of gifts from a restricted donor that exceed $100 in the aggregate in a calendar year. That report must include estimated value of the gift and the exception in Code section 68B.22 that allows the official or employee or family member to accept the gift. The bill provides that the report shall include the name of any open candidate’s committee established for the person and provides that contributions shall not be included if the contributions are disclosed on the candidate’s committee’s disclosure reports.
   Relating to the review of county redistricting plans, the bill requires that a temporary county redistricting commission retain all of its work product relating to the redistricting process or plan until the state commissioner of elections has approved the plan and any complaint alleging the plan was drawn for improper political reasons has been resolved.
   As provided in Code section 68A.701, a willful violation of any provision of the campaign finance Code chapter is a serious misdemeanor punishable by confinement for up to one year and a fine of at least $315 but not more than $1,875. A variety of civil remedies are also available in Code section 68B.32D for a violation of Code chapter 68A or rules of the ethics and campaign disclosure board, ranging from a reprimand to a civil penalty of not more than $2,000.