H.F. 276 Section 1. NEW SECTION . 68A.610 Checkoff —— income tax —— 1 Iowa elections fund. 2 A person whose state income tax liability for any taxable 3 year is five dollars or more may direct that five dollars of 4 that liability be paid over to the Iowa elections fund, as 5 established in section 68A.802, when submitting the person’s 6 state income tax return to the department of revenue. In the 7 case of married persons filing jointly and having a state 8 income tax liability of ten dollars or more, each spouse may 9 direct that five dollars be paid to the fund. The director of 10 revenue shall provide space for the Iowa elections fund income 11 tax checkoff on the income tax form. An explanation shall 12 be included which clearly states that this checkoff does not 13 constitute an additional tax liability. The action taken by a 14 person for the checkoff is irrevocable. 15 Sec. 2. NEW SECTION . 68A.801 Public campaign funding. 16 1. If a candidate for election to the house of 17 representatives or the senate is opposed on the ballot, the 18 Iowa elections fund shall match any eligible contribution 19 received by the candidate to that candidate’s committee up to 20 a maximum of five thousand dollars for a primary election and 21 a maximum of five thousand dollars for the general election 22 for the house of representatives, and up to a maximum of ten 23 thousand dollars for a primary election and a maximum of ten 24 thousand dollars for the general election for the senate. 25 2. If a candidate for election to a statewide elective 26 office is opposed on the ballot, the Iowa elections fund shall 27 match any eligible contribution received by the candidate to 28 that candidate’s committee up to a maximum of one hundred 29 thousand dollars for a primary election and a maximum of one 30 hundred thousand dollars for the general election for the 31 statewide elective office. 32 3. For purposes of subsections 1 and 2, “eligible 33 contribution” means a contribution of one hundred dollars or 34 less from an eligible elector residing in the candidate’s 35 -1- LSB 1203HH (6) 85 jr/sc 1/ 5

H.F. 276 district. 1 4. Public contributions provided under this section 2 shall not be transferred to a political committee. When 3 a candidate’s committee is closed, any unspent public 4 contributions shall be returned to the Iowa elections fund, 5 up to the amount received by the candidate in the last 6 election cycle during which the candidate received a public 7 contribution. 8 Sec. 3. NEW SECTION . 68A.802 Iowa elections fund —— nature 9 and purposes. 10 1. An Iowa elections fund is established as a separate fund 11 within the office of the state treasurer under the control of 12 the board. The fund is established for the following purposes: 13 a. Providing financial assistance for state election 14 campaigns during primary election and general election campaign 15 periods pursuant to section 68A.801. 16 b. Paying for the administrative and enforcement costs of 17 the board in relation to this subchapter. 18 2. The fund shall consist of moneys received pursuant to 19 section 68A.803 and moneys appropriated to the fund pursuant 20 to subsection 3 of this section. Notwithstanding section 8.33 21 and section 12C.7, unencumbered or unobligated moneys and any 22 interest earned on moneys in the fund on June 30 of any fiscal 23 year shall not revert to the general fund of the state but 24 shall remain in the fund and be available for expenditure in 25 subsequent years. 26 3. a. For each year of the fiscal period beginning July 1, 27 2013, and ending June 30, 2016, there is appropriated annually 28 from the general fund of the state to the Iowa elections fund 29 the sum of two million two hundred fifty thousand dollars to 30 be used by the Iowa ethics and campaign disclosure board for 31 the purposes designated in subsection 1. This paragraph “a” is 32 repealed effective July 1, 2017. 33 b. Commencing with the fiscal year beginning July 1, 2017, 34 and each subsequent fiscal year, there is appropriated annually 35 -2- LSB 1203HH (6) 85 jr/sc 2/ 5

H.F. 276 from the general fund of the state to the Iowa elections fund 1 an amount sufficient to restore the balance of the fund to four 2 million five hundred thousand dollars for expenditure for the 3 purposes designated in subsection 1. 4 Sec. 4. NEW SECTION . 68A.803 Other sources of funding. 5 1. In addition to any moneys appropriated by the general 6 assembly to the fund established in section 68A.802, the 7 following moneys shall be deposited in the fund: 8 a. Moneys credited to the fund pursuant to section 68A.610. 9 b. Moneys distributed to any candidate who does not remain 10 a candidate until the primary or general election for which the 11 moneys were distributed. 12 c. Civil penalties levied by the board against candidates 13 for violation of this subchapter. 14 d. Voluntary donations made directly to the fund. 15 e. Any other sources of revenue designated by the general 16 assembly. 17 2. Moneys in the fund are appropriated annually to the Iowa 18 ethics and campaign disclosure board for purposes of section 19 68A.802, subsection 1. 20 Sec. 5. NEW SECTION . 68A.804 Rules promulgated. 21 The Iowa ethics and campaign disclosure board shall 22 administer the provisions of this subchapter and shall 23 promulgate all necessary rules in accordance with chapter 17A. 24 Sec. 6. Section 422.12E, subsection 1, Code 2013, is amended 25 to read as follows: 26 1. For tax years beginning on or after January 1, 2004, 27 there shall be allowed no more than four income tax return 28 checkoffs on each income tax return. When the same four income 29 tax return checkoffs have been provided on the income tax 30 return for two consecutive years, the two checkoffs for which 31 the least amount has been contributed, in the aggregate for the 32 first tax year and through March 15 of the second tax year, are 33 repealed. This section does not apply to the income tax return 34 checkoff checkoffs provided in section sections 68A.601 and 35 -3- LSB 1203HH (6) 85 jr/sc 3/ 5

H.F. 276 68A.610 . 1 Sec. 7. NEW SECTION . 422.12N Income tax checkoff for Iowa 2 election fund. 3 A person who files an individual or a joint income tax 4 return with the department of revenue under section 422.13 may, 5 pursuant to section 68A.610, designate a contribution to the 6 Iowa elections fund established in section 68A.802. 7 Sec. 8. APPLICABILITY. This Act applies beginning with 8 the general election in November 2014, and its related primary 9 election, and to all subsequent general and primary elections. 10 EXPLANATION 11 This bill establishes a fund within the state treasurer’s 12 office, administered by the Iowa ethics and campaign disclosure 13 board. The bill appropriates $2.25 million annually to the 14 fund for the fiscal period beginning July 1, 2013, and ending 15 June 30, 2016. Beginning in fiscal year 2016-2017, the bill 16 appropriates an amount sufficient to restore the fund to a 17 balance of $4.5 million. Effective with the 2014 election 18 cycle, the board shall match contributions to a candidate who 19 receives a contribution in an amount of $100 or less from 20 eligible electors residing in the candidate’s district, up to a 21 maximum of $5,000 per primary election and $5,000 per general 22 election for the house of representatives; $10,000 per primary 23 election and $10,000 per general election for the senate; and 24 $100,000 per primary election and $100,000 per general election 25 for statewide elective offices, if the candidate is opposed on 26 the ballot. 27 The bill provides that public contributions provided under 28 the bill shall not be transferred to a political committee. 29 Any unspent contributions shall be returned to the Iowa 30 elections fund when a candidate’s committee is closed, up to 31 the amount received by the candidate in the last election cycle 32 during which the candidate received a public contribution. 33 The bill enacts new Code section 68A.610, which establishes 34 a $5 income tax checkoff ($10 for joint filers) for deposit in 35 -4- LSB 1203HH (6) 85 jr/sc 4/ 5

H.F. 276 the fund, paid out of any refund owed the taxpayer. 1 The bill provides for several sources of revenue for the Iowa 2 elections fund: 3 1. Moneys credited to the fund pursuant to the checkoff in 4 new Code section 68A.610. 5 2. Moneys distributed to any candidate who does not remain a 6 candidate. 7 3. Civil penalties. 8 4. Voluntary donations. 9 5. Any other sources of revenue designated by the general 10 assembly. 11 The bill applies to the general election held in November 12 2014, and the related primary election, and to all subsequent 13 general and primary elections. 14 -5- LSB 1203HH (6) 85 jr/sc 5/ 5