S.F. _____ H.F. _____ Section 1. Section 68A.201, subsection 1, Code 2015, 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.402B, subsection 3, Code 2015, is 18 amended by striking the subsection and inserting in lieu 19 thereof the following: 20 3. A person who makes one or more independent expenditures 21 and files all statements required by section 68A.404 shall 22 not be required to file a statement of dissolution under this 23 section. 24 Sec. 3. Section 68A.404, subsection 2, paragraph a, Code 25 2015, is amended to read as follows: 26 a. An entity A person , other than an individual or 27 individuals, shall not make an independent expenditure or 28 disburse funds from its treasury to pay for, in whole or in 29 part, an independent expenditure made by another person without 30 the authorization of a majority of the entity’s person’s board 31 of directors, executive council, or similar organizational 32 leadership body of the use of treasury funds for an independent 33 expenditure involving a candidate or ballot issue committee. 34 Such authorization must occur in the same calendar year in 35 -1- LSB 1340DP (4) 86 aw/sc 1/ 4

S.F. _____ H.F. _____ which the independent expenditure is incurred. 1 Sec. 4. Section 68A.404, subsection 2, Code 2015, is amended 2 by adding the following new paragraph: 3 NEW PARAGRAPH . d. This section does not apply to a 4 candidate, candidate’s committee, state statutory political 5 committee, county statutory political committee, or a political 6 committee. This section does not apply to a federal committee 7 or an out-of-state committee that makes an independent 8 expenditure. A person who makes one or more independent 9 expenditures and files all statements required by this section 10 shall not be required to organize a committee or file the 11 statement of organization required under section 68A.201. 12 Sec. 5. Section 68A.404, subsection 3, Code 2015, is amended 13 to read as follows: 14 3. A person, other than a committee registered under this 15 chapter , that makes one or more independent expenditures shall 16 file an independent expenditure statement. All statements 17 and reports required by this section shall be filed in an 18 electronic format as prescribed by rule. 19 a. Subject to paragraph “b” , the person filing the 20 independent expenditure statement shall file reports under 21 sections 68A.402 and 68A.402A . An initial report shall be filed 22 at the same time as the independent expenditure statement. 23 Subsequent reports shall be filed according to the same 24 schedule as the office or election to which the independent 25 expenditure was directed. 26 (1) A supplemental report shall be filed on the same dates 27 as in section 68A.402, subsection 2 , paragraph “b” , if the 28 person making the independent expenditure either raises or 29 expends more than one thousand dollars. 30 (2) A report filed as a result of this paragraph “a” shall 31 not require the identification of individual members who 32 pay dues to a labor union, organization, or association, or 33 individual stockholders of a business corporation. A report 34 filed as a result of this paragraph “a” shall not require the 35 -2- LSB 1340DP (4) 86 aw/sc 2/ 4

S.F. _____ H.F. _____ disclosure of any donor or other source of funding to the 1 person making the independent expenditure except when the 2 donation or source of funding, or a portion of the donation or 3 source of funding, was provided for the purpose of furthering 4 the independent expenditure. 5 b. This section does not apply to a candidate, candidate’s 6 committee, state statutory political committee, county 7 statutory political committee, or a political committee. 8 This section does not apply to a federal committee or an 9 out-of-state committee that makes an independent expenditure. 10 Sec. 6. Section 68A.404, subsection 5, paragraph g, Code 11 2015, is amended to read as follows: 12 g. A certification by an officer of the corporation 13 representing the person, if the person is other than an 14 individual or individuals, that the board of directors, 15 executive council, or similar organizational leadership body 16 expressly authorized the independent expenditure or use of 17 treasury funds for the independent expenditure by resolution 18 or other affirmative action within the calendar year when the 19 independent expenditure was incurred. 20 Sec. 7. Section 68A.404, subsection 5, Code 2015, is amended 21 by adding the following new paragraph: 22 NEW PARAGRAPH . h. The name and address of every contributor 23 or source of funding that provided anything of value that 24 was provided for the purpose of furthering the independent 25 expenditure. A person making an independent expenditure 26 shall not be required to disclose the names and addresses of 27 individual members who pay dues to a labor union, organization, 28 or association or individual stockholders of a business 29 corporation. 30 EXPLANATION 31 The inclusion of this explanation does not constitute agreement with 32 the explanation’s substance by the members of the general assembly. 33 This bill makes changes to the campaign finance laws 34 relating to independent expenditures. 35 -3- LSB 1340DP (4) 86 aw/sc 3/ 4

S.F. _____ H.F. _____ The bill provides that a person who makes independent 1 expenditures and files all required statements is not required 2 to organize a committee or file a statement of organization. 3 The bill strikes language that required persons making 4 independent expenditures to file a termination report following 5 a determination that the person will no longer make such 6 expenditures. The bill also states that a person who makes 7 an independent expenditure shall not be required to file a 8 statement of dissolution if the person files all other required 9 statements. 10 The bill strikes the requirement that a person making 11 an independent expenditure file the same disclosure report 12 required of candidates. 13 The bill requires that an officer representing a person, 14 other than one or more individuals, certify the prior 15 authorization for the independent expenditure from the person’s 16 governing or leadership body. The statute currently requires 17 only a corporation to certify prior authorization. 18 The bill requires that the name and address of every 19 contributor or source of funding that provided anything of 20 value for purposes of furthering an independent expenditure be 21 included on the independent expenditure statement but maintains 22 current Code language that provides that the identification of 23 individual members who pay dues to a labor union, organization, 24 or association, or individual stockholders of a business 25 corporation is not required. 26 As provided in Code section 68A.701, a willful violation of 27 any provision of the campaign finance Code chapter is a serious 28 misdemeanor punishable by confinement for up to one year and 29 a fine of at least $315 but not more than $1,875. A variety 30 of civil remedies are also available in Code section 68B.32D 31 for a violation of Code chapter 68A or rules of the ethics and 32 campaign disclosure board, ranging from a reprimand to a civil 33 penalty of not more than $2,000. 34 -4- LSB 1340DP (4) 86 aw/sc 4/ 4