H.F. 618 DIVISION I 1 IOWA ELECTION CAMPAIGN FUND TAX CHECKOFF 2 Section 1. Section 68A.601, Code 2015, is amended to read 3 as follows: 4 68A.601 Checkoff —— income tax. 5 A For tax years beginning before January 1, 2015, a person 6 whose state income tax liability for any taxable year is one 7 dollar and fifty cents or more may direct that one dollar and 8 fifty cents of that liability be paid over to the Iowa election 9 campaign fund when submitting the person’s state income tax 10 return to the department of revenue. In the case of a joint 11 return of husband and wife having a state income tax liability 12 of three dollars or more, each spouse may direct that one 13 dollar and fifty cents be paid to the fund. The For tax years 14 beginning before January 1, 2015, the director of revenue shall 15 draft the income tax form to provide spaces on the tax return 16 which the taxpayer may use to designate that contributions made 17 under this section be credited to a specified political party 18 as defined by section 43.2 , or to the Iowa election campaign 19 fund as a contribution to be shared by all such political 20 parties in the manner prescribed by section 68A.602 . The form 21 shall inform the taxpayer of the consequences of the choices 22 provided under this section , but this information may be 23 contained in a footnote or other suitable form if the director 24 of revenue finds it is not feasible to place the information 25 immediately above the signature line. The action taken by a 26 person for the checkoff is irrevocable. 27 Sec. 2. Section 422.12J, Code 2015, is amended to read as 28 follows: 29 422.12J Income tax checkoff for Iowa election campaign fund. 30 A For tax years beginning before January 1, 2015, a person 31 who files an individual or a joint income tax return with 32 the department of revenue under section 422.13 may designate 33 a contribution to the Iowa election campaign fund authorized 34 pursuant to section 68A.601 . 35 -1- LSB 2010YH (2) 86 mm/sc 1/ 6

H.F. 618 DIVISION II 1 FUTURE REPEAL OF IOWA ELECTION CAMPAIGN FUND TAX CHECKOFF 2 Sec. 3. Section 68A.103, subsection 2, Code 2015, is amended 3 by striking the subsection. 4 Sec. 4. Section 97B.3, subsection 2, Code 2015, is amended 5 to read as follows: 6 2. The qualifications for appointment as the chief 7 executive officer shall include management-level pension 8 fund administration experience. The qualifications for 9 appointment as the chief executive officer shall also 10 include a demonstrated knowledge of all aspects of pension 11 fund administration, including financial management, 12 investment asset management, benefit design and delivery, 13 legal administration, and operations administration. The 14 chief executive officer shall not be selected on the basis 15 of political affiliation, and while employed as the chief 16 executive officer, shall not be a member of a political 17 committee, participate in a political campaign, or be a 18 candidate for a partisan elective office, and shall not 19 contribute to a political campaign fund, except that the chief 20 executive officer may designate on the checkoff portion of the 21 state or federal income tax return , or both, a party or parties 22 to which a contribution is made pursuant to the checkoff. The 23 chief executive officer shall not hold any other office under 24 the laws of the United States or of this or any state and shall 25 devote full time to the duties of office. 26 Sec. 5. Section 422.12D, subsection 2, Code 2015, is amended 27 to read as follows: 28 2. The director of revenue shall draft the income tax form 29 to allow the designation of contributions to the foundation 30 fund on the tax return. The department, on or before January 31 31, shall transfer the total amount designated on the tax 32 form due in the preceding year to the foundation fund. 33 However, before a checkoff pursuant to this section shall be 34 permitted, all liabilities on the books of the department of 35 -2- LSB 2010YH (2) 86 mm/sc 2/ 6

H.F. 618 administrative services and accounts identified as owing under 1 section 8A.504 and the political contribution allowed under 2 section 68A.601 shall be satisfied. 3 Sec. 6. Section 422.12E, subsection 1, Code 2015, is amended 4 to read as follows: 5 1. For tax years beginning on or after January 1, 2004, 6 there shall be allowed no more than four income tax return 7 checkoffs on each income tax return. When the same four income 8 tax return checkoffs have been provided on the income tax 9 return for two consecutive years, the two checkoffs for which 10 the least amount has been contributed, in the aggregate for the 11 first tax year and through March 15 of the second tax year, are 12 repealed. This section does not apply to the income tax return 13 checkoff provided in section 68A.601 . 14 Sec. 7. Section 422.12K, subsection 2, Code 2015, is amended 15 to read as follows: 16 2. The director of revenue shall draft the income tax form 17 to allow the designation of contributions to the child abuse 18 prevention program fund on the tax return. The department of 19 revenue, on or before January 31, shall transfer the total 20 amount designated on the tax return forms due in the preceding 21 calendar year to the child abuse prevention program fund. 22 However, before a checkoff pursuant to this section shall be 23 permitted, all liabilities on the books of the department of 24 administrative services and accounts identified as owing under 25 section 8A.504 and the political contribution allowed under 26 section 68A.601 shall be satisfied. 27 Sec. 8. Section 422.12L, subsection 2, Code 2015, is amended 28 to read as follows: 29 2. The director of revenue shall draft the income tax form 30 to allow the designation of contributions to the veterans trust 31 fund and to the volunteer fire fighter preparedness fund as 32 one checkoff on the tax return. The department of revenue, 33 on or before January 31, shall transfer one-half of the total 34 amount designated on the tax return forms due in the preceding 35 -3- LSB 2010YH (2) 86 mm/sc 3/ 6

H.F. 618 calendar year to the veterans trust fund and the remaining 1 one-half to the volunteer fire fighter preparedness fund. 2 However, before a checkoff pursuant to this section shall be 3 permitted, all liabilities on the books of the department of 4 administrative services and accounts identified as owing under 5 section 8A.504 and the political contribution allowed under 6 section 68A.601 shall be satisfied. 7 Sec. 9. Section 456A.16, unnumbered paragraph 7, Code 2015, 8 is amended to read as follows: 9 The department shall adopt rules to implement this section . 10 However, before a checkoff pursuant to this section shall be 11 permitted, all liabilities on the books of the department of 12 administrative services and accounts identified as owing under 13 section 8A.504 and the political contribution allowed under 14 section 68A.601 shall be satisfied. 15 Sec. 10. Section 474.10, Code 2015, is amended to read as 16 follows: 17 474.10 General counsel. 18 The board shall employ a competent attorney to serve as its 19 general counsel, and assistants to the general counsel as it 20 finds necessary for the full and efficient discharge of its 21 duties. The general counsel is the attorney for, and legal 22 advisor of, the board and is exempt from the merit system 23 provisions of chapter 8A, subchapter IV . Assistants to the 24 general counsel are subject to the merit system provisions of 25 chapter 8A, subchapter IV . The general counsel or an assistant 26 to the general counsel shall provide the necessary legal advice 27 to the board in all matters and represent the board in all 28 actions instituted in a state or federal court challenging 29 the validity of a rule or order of the board. The existence 30 of a fact which disqualifies a person from election or from 31 acting as a utilities board member disqualifies the person from 32 employment as general counsel or assistant general counsel. 33 The general counsel shall devote full time to the duties of the 34 office. During employment the counsel shall not be a member of 35 -4- LSB 2010YH (2) 86 mm/sc 4/ 6

H.F. 618 a political committee, contribute to a political campaign fund 1 other than through the income tax checkoff for contributions to 2 the Iowa election campaign fund and the presidential election 3 campaign fund, participate in a political campaign, or be a 4 candidate for a political office. 5 Sec. 11. Section 475A.1, subsection 4, Code 2015, is amended 6 to read as follows: 7 4. Political activity prohibited. The consumer advocate 8 shall devote the advocate’s entire time to the duties of the 9 office; and during the advocate’s term of office the advocate 10 shall not be a member of a political committee or contribute 11 to a political campaign fund other than through the income tax 12 checkoff for contributions to the Iowa election campaign fund 13 and the presidential election campaign fund or take part in 14 political campaigns or be a candidate for a political office. 15 Sec. 12. Section 904.107, Code 2015, is amended to read as 16 follows: 17 904.107 Director —— appointment and qualifications. 18 The chief administrative officer for the department is the 19 director. The director shall be appointed by the governor 20 subject to confirmation by the senate and shall serve at the 21 pleasure of the governor. The director shall be qualified 22 in reformatory and prison management, knowledgeable in 23 community-based corrections, and shall possess administrative 24 ability. The director shall also have experience in the field 25 of criminology and discipline and in the supervision of inmates 26 in corrective penal institutions. The director shall not be 27 selected on the basis of political affiliation, and while 28 employed as the director, shall not be a member of a political 29 committee, participate in a political campaign, be a candidate 30 for a partisan elective office, and shall not contribute to a 31 political campaign fund, except that the director may designate 32 on the checkoff portion of the state or federal income tax 33 return , or both, a party or parties to which a contribution is 34 made pursuant to the checkoff. The director shall not hold any 35 -5- LSB 2010YH (2) 86 mm/sc 5/ 6

H.F. 618 other office under the laws of the United States or of this or 1 any state or hold any position for profit and shall devote full 2 time to the duties of office. 3 Sec. 13. REPEAL. Sections 68A.601, 68A.602, 68A.603, 4 68A.604, 68A.605, 68A.606, 68A.607, 68A.608, 68A.609, and 5 422.12J, Code 2015, are repealed. 6 Sec. 14. EFFECTIVE DATE. This division of this Act takes 7 effect July 1, 2016. 8 EXPLANATION 9 The inclusion of this explanation does not constitute agreement with 10 the explanation’s substance by the members of the general assembly. 11 This bill relates to the Iowa election campaign income tax 12 checkoff and the Iowa election campaign fund. 13 Under current law, the Iowa election campaign income tax 14 checkoff allows individuals to designate on their income tax 15 return up to $1.50 of their state tax liability to the Iowa 16 election campaign fund. The checkoff is not subject to the 17 provisions of Code section 422.12E. 18 Moneys in the Iowa election campaign fund, consisting of 19 a separate fund for each political party, are disbursed to 20 candidates for partisan public office at the request of the 21 candidate and at the discretion of the state central committee 22 of each political party. The Iowa ethics and campaign 23 disclosure board is responsible for administering the Iowa 24 election campaign fund. Any moneys not used by the political 25 parties by the end of a general election year revert to the 26 general fund of the state. 27 Division I of the bill restricts the Iowa election campaign 28 income tax checkoff to tax years beginning before January 1, 29 2015. The checkoff will not be available on the individual 30 income tax return for tax year 2015, nor any tax year 31 thereafter. 32 Division II of the bill provides that the Iowa election 33 campaign income tax checkoff and the Iowa election campaign 34 fund are repealed effective July 1, 2016. 35 -6- LSB 2010YH (2) 86 mm/sc 6/ 6