Senate Study Bill 1114 - Introduced SENATE/HOUSE FILE _____ BY (PROPOSED ETHICS AND CAMPAIGN DISCLOSURE BOARD BILL) A BILL FOR An Act making changes to the campaign finance laws relating to 1 independent expenditures. 2 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 3 TLSB 1300DP (6) 85 jr/sc
S.F. _____ H.F. _____ Section 1. Section 68A.201, subsection 1, Code 2013, is 1 amended to read as follows: 2 1. a. Every committee, as defined in this chapter , shall 3 file a statement of organization within ten days from the date 4 of its organization. Unless formal organization has previously 5 occurred, a committee is deemed to have organized as of the 6 date that committee transactions exceed the financial activity 7 threshold established in section 68A.102, subsection 5 or 8 18 . If committee transactions exceed the financial activity 9 threshold prior to the due date for filing a disclosure report 10 as established under section 68A.402 , the committee shall file 11 a disclosure report whether or not a statement of organization 12 has been filed by the committee. 13 b. A person who makes one or more independent expenditures 14 and files all statements required by section 68A.404 shall not 15 be required to organize a committee or file the statement of 16 organization required under this section. 17 Sec. 2. Section 68A.404, subsections 1, 2, 3, and 7, Code 18 2013, are amended to read as follows: 19 1. As used in this section , “independent expenditure” means 20 one or more expenditures in excess of seven hundred fifty 21 dollars in the aggregate for a communication that expressly 22 advocates the nomination, election, or defeat of a clearly 23 identified candidate or the passage or defeat of a ballot issue 24 that is made without the prior approval or coordination with 25 a candidate, candidate’s committee, state statutory political 26 committee, county statutory political committee, or a ballot 27 issue political committee. 28 2. a. An entity A person , other than an individual or 29 individuals, shall not make an independent expenditure or 30 disburse funds from its treasury to pay for, in whole or in 31 part, an independent expenditure made by another person without 32 the authorization of a majority of the entity’s person’s board 33 of directors, executive council, or similar organizational 34 leadership body of the use of treasury funds for an independent 35 -1- LSB 1300DP (6) 85 jr/sc 1/ 6
S.F. _____ H.F. _____ expenditure involving a candidate or ballot issue committee . 1 Such authorization must occur in the same calendar year in 2 which the independent expenditure is incurred. 3 b. Such authorization shall expressly provide whether 4 the board of directors, executive council, or similar 5 organizational leadership body authorizes one or more 6 independent expenditures that expressly advocate the nomination 7 or election of a candidate or passage of a ballot issue or 8 authorizes one or more independent expenditures that expressly 9 advocate the defeat of a candidate or ballot issue . 10 c. A foreign national shall not make an independent 11 expenditure, directly or indirectly, that advocates the 12 nomination, election, or defeat of any candidate or the 13 passage or defeat of any ballot issue . As used in this 14 section , “foreign national” means a person who is not a citizen 15 of the United States and who is not lawfully admitted for 16 permanent residence. “Foreign national” includes a foreign 17 principal, such as a government of a foreign country or a 18 foreign political party, partnership, association, corporation, 19 organization, or other combination of persons that has its 20 primary place of business in or is organized under the laws of 21 a foreign country. “Foreign national” does not include a person 22 who is a citizen of the United States or who is a national of 23 the United States. 24 d. This section does not apply to a candidate, candidate’s 25 committee, state statutory political committee, county 26 statutory political committee, or a political committee. 27 This section does not apply to a federal committee or an 28 out-of-state committee that makes an independent expenditure. 29 A person who makes one or more independent expenditures and 30 files all statements required by this section shall not be 31 required to organize a committee or file the statement of 32 organization required under section 68A.201. 33 3. A person, other than a committee registered under this 34 chapter , that makes one or more independent expenditures shall 35 -2- LSB 1300DP (6) 85 jr/sc 2/ 6
S.F. _____ H.F. _____ file an independent expenditure statement. All statements 1 and reports required by this section shall be filed in an 2 electronic format as prescribed by rule. 3 a. Subject to paragraph “b” , the person filing the 4 independent expenditure statement shall file reports under 5 sections 68A.402 and 68A.402A . An initial report shall be filed 6 at the same time as the independent expenditure statement. 7 Subsequent reports shall be filed according to the same 8 schedule as the office or election to which the independent 9 expenditure was directed. 10 (1) A supplemental report shall be filed on the same dates 11 as in section 68A.402, subsection 2 , paragraph “b” , if the 12 person making the independent expenditure either raises or 13 expends more than one thousand dollars. 14 (2) A report filed as a result of this paragraph “a” shall 15 not require the identification of individual members who 16 pay dues to a labor union, organization, or association, or 17 individual stockholders of a business corporation. A report 18 filed as a result of this paragraph “a” shall not require the 19 disclosure of any donor or other source of funding to the 20 person making the independent expenditure except when the 21 donation or source of funding, or a portion of the donation or 22 source of funding, was provided for the purpose of furthering 23 the independent expenditure. 24 b. This section does not apply to a candidate, candidate’s 25 committee, state statutory political committee, county 26 statutory political committee, or a political committee. 27 This section does not apply to a federal committee or an 28 out-of-state committee that makes an independent expenditure. 29 7. A person making an independent expenditure shall not 30 engage or retain an advertising firm or consultant that has 31 also been engaged or retained within the prior six months 32 by the candidate , or candidate’s committee , or ballot issue 33 committee that is benefited by the independent expenditure. 34 Sec. 3. Section 68A.404, subsection 5, paragraphs b, c, and 35 -3- LSB 1300DP (6) 85 jr/sc 3/ 6
S.F. _____ H.F. _____ g, Code 2013, are amended to read as follows: 1 b. Description of the position advocated by the individuals 2 or persons with regard to the clearly identified candidate or 3 ballot issue . 4 c. Identification of the candidate or ballot issue benefited 5 by the independent expenditure. 6 g. A certification by an officer of the corporation 7 representing the person, if the person is other than an 8 individual or individuals, that the board of directors, 9 executive council, or similar organizational leadership body 10 expressly authorized the independent expenditure or use of 11 treasury funds for the independent expenditure by resolution 12 or other affirmative action within the calendar year when the 13 independent expenditure was incurred. 14 Sec. 4. Section 68A.404, subsection 5, Code 2013, is amended 15 by adding the following new paragraphs: 16 NEW PARAGRAPH . h. The name and address of every donor or 17 other source of funding in excess of twenty-five dollars which 18 was provided for the purpose of furthering the independent 19 expenditure. 20 NEW PARAGRAPH . i. If the person making the independent 21 expenditure uses, in whole or in part, anything of value 22 from one or more donors which was not given for the purpose 23 of furthering the independent expenditure, the person making 24 the independent expenditure must disclose the top five donors 25 in the twelve months prior to the independent expenditure 26 being made who gave to the person making the independent 27 expenditure. For purposes of this section, a donor is a person 28 who has rendered anything of value in return for which legal 29 consideration of equal or greater value is not given and 30 received. 31 Sec. 5. Section 68A.405, subsection 1, paragraph h, Code 32 2013, is amended to read as follows: 33 h. If the published material is the result of an independent 34 expenditure subject to section 68A.404 , the published material 35 -4- LSB 1300DP (6) 85 jr/sc 4/ 6
S.F. _____ H.F. _____ shall include a statement that the published material was not 1 authorized by any candidate, candidate’s committee, state 2 statutory political committee, county statutory political 3 committee, or ballot issue political committee. 4 EXPLANATION 5 This bill makes changes to the campaign finance laws 6 relating to independent expenditures. 7 The bill provides that a person who makes independent 8 expenditures and files all required statements is not required 9 to organize a committee or file a statement of organization. 10 The bill strikes current Code language requiring the filing 11 of independent expenditure reports. 12 The bill prohibits a person making an independent 13 expenditure from coordinating with a state statutory political 14 committee, a county statutory political committee, or other 15 political committee as well as a candidate or candidate’s 16 committee. The statute currently only prohibits coordination 17 with a candidate, candidate’s committee, or ballot issue 18 committee. 19 The bill eliminates the ability to make independent 20 expenditures in favor of or opposed to ballot issues. 21 The bill requires any person, other than one or more 22 individuals, who makes an independent expenditure to obtain 23 prior authorization for the independent expenditure from its 24 governing or leadership body. The statute currently only 25 requires an entity or corporation other, than an individual or 26 individuals, to obtain prior authorization. 27 The bill strikes current Code language which provides that 28 the identification of individual members who pay dues to a 29 labor union, organization, or association, or individual 30 stockholders of a business corporation is not required. 31 The bill requires disclosure of the name and address of every 32 donor or other source of funding in excess of $25 provided 33 for the independent expenditure. The bill further requires 34 that if a person making an independent expenditure uses 35 -5- LSB 1300DP (6) 85 jr/sc 5/ 6
S.F. _____ H.F. _____ anything of value from a donor, as defined in the bill, that 1 was not donated for the purpose of furthering the independent 2 expenditure, the person must disclose the person’s top five 3 donors in the 12 months prior to the making of the independent 4 expenditure. The statute currently only requires disclosure 5 of donors if the donations were given for the purpose of 6 furthering the independent expenditure. 7 -6- LSB 1300DP (6) 85 jr/sc 6/ 6