S.F. _____ Section 1. Section 68A.201, subsection 1, Code 2014, 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 or electioneering communications, as defined in section 15 68A.404, and files all statements required by section 68A.404 16 shall not be required to organize a committee or file the 17 statement of organization required under this section. 18 Sec. 2. Section 68A.404, subsection 1, Code 2014, is amended 19 to read as follows: 20 1. a. As used in this section , “independent expenditure” 21 means one or more expenditures in excess of seven hundred fifty 22 dollars in the aggregate for a communication that expressly 23 advocates the nomination, election, or defeat of a clearly 24 identified candidate or the passage or defeat of a ballot issue 25 that is made without the prior approval or coordination with a 26 candidate, candidate’s committee, or a ballot issue committee. 27 b. (1) As used in this section, “electioneering 28 communication” means one or more expenditures in excess of seven 29 hundred fifty dollars in the aggregate for a communication 30 that clearly identifies a candidate for elective office, but 31 does not expressly advocate the nomination, election, or 32 defeat of the candidate, and that is disseminated, broadcast, 33 or otherwise published within sixty days of the election for 34 the office sought by that candidate, that is made without the 35 -1- LSB 6148XC (7) 85 aw/sc 1/ 10

S.F. _____ prior approval or coordination with a candidate, candidate’s 1 committee, or a ballot issue committee, and that meets the 2 following conditions: 3 (a) Is for broadcast, cable, or satellite communications 4 and is intended to be received by fifteen thousand or more 5 individuals in total for statewide office or three thousand or 6 more individuals in total for other offices. 7 (b) Is for mass mailing, print, or telephonic communication 8 and is intended to be received by two thousand five hundred or 9 more households in total for statewide office five hundred or 10 more households in total for other offices. 11 (2) “Electioneering communication” does not include: 12 (a) A communication appearing in a news story, commentary, 13 or editorial distributed through the facilities of any 14 broadcasting station, unless such facilities are owned or 15 controlled by a political party, committee, or candidate. 16 (b) A candidate debate or forum conducted pursuant to 17 regulations adopted by the board, or any communication the sole 18 purpose of which is to promote such a debate or forum and the 19 communication is made by or on behalf of the person sponsoring 20 the debate or forum. 21 (c) A communication on the internet or through electronic 22 mail that is not a paid advertisement on another internet site 23 or through an internet communications service. 24 (d) Any communication that the board determines does not 25 constitute an electioneering communication under rules adopted 26 by the board as consistent with this chapter. 27 c. A political subdivision of this state may by resolution 28 reduce the thresholds for electioneering communications in 29 paragraph “b” , subparagraph (1) for elections for offices for 30 that political subdivision. 31 Sec. 3. Section 68A.404, subsection 2, paragraphs a and b, 32 Code 2014, are amended to read as follows: 33 a. An entity A person , other than an individual or 34 individuals, shall not make an independent expenditure or 35 -2- LSB 6148XC (7) 85 aw/sc 2/ 10

S.F. _____ electioneering communication or disburse funds from its 1 treasury to pay for, in whole or in part, an independent 2 expenditure or electioneering communication that can reasonably 3 be expected to be made by another person , as defined in 4 section 68A.102, without the authorization of a majority 5 of the entity’s contributing person’s board of directors, 6 executive council, or similar organizational leadership body 7 of the use of treasury funds for an independent expenditure 8 or electioneering communication involving a candidate or 9 ballot issue committee. Such authorization must occur in the 10 same calendar year in which the independent expenditure or 11 electioneering communication is incurred. 12 b. Such authorization shall expressly provide whether 13 the board of directors, executive council, or similar 14 organizational leadership body authorizes one or more 15 independent expenditures that expressly advocate the nomination 16 or election of a candidate or passage of a ballot issue 17 or authorizes one or more independent expenditures that 18 expressly advocate the defeat of a candidate or ballot issue or 19 electioneering communications . 20 Sec. 4. Section 68A.404, subsection 2, Code 2014, is amended 21 by adding the following new paragraph: 22 NEW PARAGRAPH . d. For purposes of the donor information 23 required in subsection 5, a person, as defined in section 24 68A.102, may reasonably expect that a contribution or transfer 25 of funds to a person subject to the authorization requirements 26 of paragraph “a” will be used for independent expenditures 27 or electioneering communications if the recipient of such 28 a contribution or transfer could reasonably be expected to 29 make such expenditures or communications or has made such 30 expenditures or communications in the last five years, unless 31 any of the following apply: 32 (1) The contribution or transfer of funds is made in the 33 ordinary course of business. 34 (2) The person making the contribution or transfer and 35 -3- LSB 6148XC (7) 85 aw/sc 3/ 10

S.F. _____ recipient agree in writing that the funds will not be used for 1 independent expenditures or electioneering communications. 2 Sec. 5. Section 68A.404, subsection 3, Code 2014, is amended 3 by striking the subsection and inserting in lieu thereof the 4 following: 5 3. a. A person, other than a committee registered under 6 this chapter , who makes one or more independent expenditures 7 or electioneering communications shall file an independent 8 expenditure or electioneering communication statement whichever 9 is appropriate. All statements required by this section shall 10 be filed in an electronic format as prescribed by rule. 11 b. A statement filed in accordance with paragraph “a” shall 12 not require identification of individual stockholders of a 13 business corporation or individual members who pay dues to a 14 labor union as part of a collective bargaining agreement. 15 Sec. 6. Section 68A.404, subsection 4, Code 2014, is amended 16 to read as follows: 17 4. a. An independent expenditure or electioneering 18 communication statement shall be filed within forty-eight hours 19 of the making of an independent expenditure or electioneering 20 communication in excess of seven hundred fifty dollars in the 21 aggregate, or within forty-eight hours of disseminating the 22 communication to its intended audience, whichever is earlier. 23 For purposes of this section , an independent expenditure or 24 electioneering communication is made when the independent 25 expenditure communication or electioneering communication 26 is purchased or ordered regardless of whether or not the 27 person making the independent expenditure or electioneering 28 communication has been billed for the cost of the independent 29 expenditure or electioneering communication . 30 b. An independent expenditure or electioneering 31 communication statement shall be filed with the board and the 32 board shall immediately make the independent expenditure or 33 electioneering communication statement available for public 34 viewing. 35 -4- LSB 6148XC (7) 85 aw/sc 4/ 10

S.F. _____ c. For purposes of this section , an independent expenditure 1 or electioneering communication is made at the time that the 2 cost is incurred. 3 Sec. 7. Section 68A.404, subsection 5, unnumbered paragraph 4 1, Code 2014, is amended to read as follows: 5 The independent expenditure or electioneering communication 6 statement shall contain all of the following information: 7 Sec. 8. Section 68A.404, subsection 5, paragraphs c and g, 8 Code 2014, are amended to read as follows: 9 c. Identification of the candidate or ballot issue benefited 10 by the independent expenditure or electioneering communication . 11 g. A certification by an officer of the corporation 12 that the board of directors, executive council, or similar 13 organizational leadership body expressly authorized the 14 independent expenditure or electioneering communication or 15 use of treasury funds for the independent expenditure or 16 electioneering communication by resolution or other affirmative 17 action within the calendar year when the independent 18 expenditure or electioneering communication was incurred. 19 Sec. 9. Section 68A.404, subsection 5, Code 2014, is amended 20 by adding the following new paragraphs: 21 NEW PARAGRAPH . h. Except as provided in paragraph “i” , the 22 name and address of every donor or other source of funding in 23 excess of twenty-five dollars, and the amount of contribution 24 from each such donor or other source of funding, contributed or 25 transferred to the person making the independent expenditures 26 or electioneering communications within the past twelve months 27 unless any of the following apply: 28 (1) The contribution or transfer of funds is made in the 29 ordinary course of business. 30 (2) The person making the contribution or transfer and the 31 recipient agree in writing that the funds will not be used for 32 independent expenditures or electioneering communications. 33 NEW PARAGRAPH . i. If the person making the independent 34 expenditure or electioneering communication finances the 35 -5- LSB 6148XC (7) 85 aw/sc 5/ 10

S.F. _____ expenditure exclusively from funds in a segregated account, 1 the name and address of every donor or other source of funding 2 in excess of twenty-five dollars, and the amount of each 3 contribution from each such donor, or other source of funding 4 contributed or transferred to that segregated account, within 5 the past twelve months, but not those of donors or sources of 6 funds outside of that segregated account. 7 NEW PARAGRAPH . j. If the person making the independent 8 expenditure or electioneering communication received a 9 contribution or transfer of funds in excess of seven hundred 10 fifty dollars from another person, other than an individual, 11 the person making the expenditure or communication must 12 disclose the identity of the contributing person, the amount 13 received from the contributing person, and the name, address, 14 and dollar amount of donations of the five donors, if any, 15 who have contributed the largest amounts of money to the 16 person making the independent expenditure or electioneering 17 communication in the twelve months prior to the expenditure or 18 communication being made, unless any of the following apply for 19 any of such five donors: 20 (1) The contribution or transfer of funds is made in the 21 ordinary course of business. 22 (2) The person making the contribution or transfer and the 23 recipient agree in writing that the funds will not be used for 24 independent expenditures or electioneering communications. 25 Sec. 10. Section 68A.404, subsections 6, 7, and 8, Code 26 2014, are amended to read as follows: 27 6. Any person making an independent expenditure or 28 electioneering communication shall comply with the attribution 29 requirements of section 68A.405 . 30 7. A person making an independent expenditure or 31 electioneering communication shall not engage or retain an 32 advertising firm or consultant that has also been engaged 33 or retained within the prior six months by the candidate, 34 candidate’s committee, or ballot issue committee that is 35 -6- LSB 6148XC (7) 85 aw/sc 6/ 10

S.F. _____ benefited by the independent expenditure or electioneering 1 communication . 2 8. a. The board shall develop, prescribe, furnish, 3 and distribute forms for the independent expenditure and 4 electioneering communication statements required by this 5 section . 6 b. The board shall adopt rules pursuant to chapter 17A for 7 the implementation of this section . 8 Sec. 11. Section 68A.404, Code 2014, is amended by adding 9 the following new subsections: 10 NEW SUBSECTION . 7A. A person, other than an individual, who 11 makes one or more independent expenditures or electioneering 12 communications and files all statements required by this 13 section shall not be required to organize a committee or file 14 the statement of organization required under section 68A.201. 15 NEW SUBSECTION . 7B. a. This section does not apply to a 16 candidate, committee, state statutory political committee, or 17 county statutory political committee. 18 b. This section does not apply to a federal committee or an 19 out-of-state committee that makes an independent expenditure or 20 electioneering communication. 21 Sec. 12. Section 68A.405, subsection 1, paragraph h, Code 22 2014, is amended to read as follows: 23 h. If the published material is the result of an independent 24 expenditure or electioneering communication subject to section 25 68A.404 , the published material shall include a statement that 26 the published material was not authorized by any candidate, 27 candidate’s committee, state statutory political committee, 28 county statutory political committee, or ballot issue 29 committee. 30 Sec. 13. NEW SECTION . 68A.507 Concealment and 31 misrepresentation. 32 1. A person shall not make a contribution or transfer 33 through an agent or intermediary for the purposes of 34 misrepresenting the source of such contribution or transfer. 35 -7- LSB 6148XC (7) 85 aw/sc 7/ 10

S.F. _____ 2. A person shall not solicit another person to make a 1 contribution or transfer on behalf of the soliciting person for 2 the purposes of misrepresenting the source of such contribution 3 or transfer. 4 Sec. 14. NEW SECTION . 68A.801 Severability. 5 If any provision of this chapter, or the application of this 6 chapter to any person or circumstance, is held invalid, such 7 holding shall not affect the provisions or applications of this 8 chapter which can be given effect without the invalid provision 9 or application, and to that end the provisions of this chapter 10 are severable. 11 EXPLANATION 12 The inclusion of this explanation does not constitute agreement with 13 the explanation’s substance by the members of the general assembly. 14 This bill relates to campaign finance laws under Code 15 chapter 68A. 16 Current Code section 68A.404 regulates independent 17 expenditures, which are defined as one or more expenditures 18 in excess of $750 in the aggregate for a communication that 19 expressly advocates the nomination, election, or defeat of 20 a clearly identified candidate or the passage or defeat of 21 a ballot issue that is made without the prior approval or 22 coordination with a candidate, candidate’s committee, or a 23 ballot issue committee. Code section 68A.404 provides that an 24 entity, other than an individual, may not make an independent 25 expenditure without prior authorization of its board of 26 directors or similar organizational leadership body and 27 requires that a person making an independent expenditure file a 28 statement in electronic format with the board within 48 hours 29 of making the expenditure or disseminating a communication, 30 whichever is earlier disclosing information specified in 31 statute. The board is required to immediately make the 32 statement available for public viewing. A person making an 33 independent expenditure is also required to file disclosure 34 reports required for certain organized committees engaging in 35 -8- LSB 6148XC (7) 85 aw/sc 8/ 10

S.F. _____ political activity. 1 The bill changes “entity” to the defined term “person” for 2 purposes of Code section 68A.404. 3 The bill provides that electioneering communications shall 4 be regulated by the Iowa ethics and campaign finance disclosure 5 board in the same manner as independent expenditures. 6 The bill defines “electioneering communication” as one 7 or more expenditures in excess of $750 in the aggregate 8 for a communication that clearly identifies a candidate 9 for elective office, but does not expressly advocate the 10 nomination, election or defeat of the candidate that is 11 disseminated, broadcast, or otherwise published within 60 days 12 of the election, that is made without the prior approval or 13 coordination with a candidate, candidate’s committee, or a 14 ballot issue committee, and is intended to be received by a 15 certain size audience, as specified in the bill. 16 The bill provides that a person who makes independent 17 expenditures or electioneering communications and files all 18 required statements is not required to organize a committee or 19 file a statement of organization. 20 The bill provides that, for purposes of expenditure 21 or communication disclosure statements, a person or an 22 entity can reasonably expect that certain contributions or 23 transfers of funds will be used for independent expenditures 24 or electioneering communications, unless certain conditions 25 specified in the bill apply. 26 The bill strikes current Code language requiring the filing 27 of committee disclosure reports by persons making independent 28 expenditures and requires only the filing of independent 29 expenditure statements or electioneering communications 30 statements required by Code section 68A.404. 31 The bill amends the disclosure statement requirements in 32 Code section 68A.404 to require disclosure of the name and 33 address and amount given of every donor or other source of 34 funding in excess of $25 received by the person making the 35 -9- LSB 6148XC (7) 85 aw/sc 9/ 10

S.F. _____ independent expenditure or electioneering communication. If 1 the person making the independent expenditure or electioneering 2 communication uses funds exclusively allocated from a 3 segregated account, the person need only disclose donors to 4 that segregated bank account. The statute currently only 5 requires disclosure of donors if the donations were given for 6 the purpose of furthering the independent expenditure. 7 The bill requires that if a person making an independent 8 expenditure or electioneering communication receives a 9 contribution in excess of $750 from another person, the person 10 making the expenditure or communication must disclose on the 11 statement the name, address, and the dollar amount of donations 12 of the five donors, if any, who have contributed the largest 13 amounts of money in the 12 months prior to the expenditure or 14 communication being made. 15 The bill enacts new Code section 68A.507, which prohibits 16 a person from making a contribution or transfer through an 17 agent or intermediary for the purposes of misrepresenting 18 the source of such contribution or transfer. The bill also 19 prohibits a person from soliciting another person to make such 20 contributions or transfers. 21 The bill further establishes a severability clause for Code 22 chapter 68A, providing that if any provision or application of 23 Code chapter 68A is held invalid, that such holding shall not 24 affect the provisions or applications that can be given effect 25 without the invalid provision or application. 26 Under current law, a violation of a provision of Code chapter 27 68A is considered a serious misdemeanor. A serious misdemeanor 28 is punishable by confinement for no more than one year and a 29 fine of at least $315 but not more than $1,875. 30 -10- LSB 6148XC (7) 85 aw/sc 10/ 10