House File 101 - Introduced HOUSE FILE 101 BY HUNTER A BILL FOR An Act relating to campaign finance by establishing a 1 voter-owned Iowa clean elections Act and fund, providing 2 for funding from specified sources, including an income 3 tax checkoff, providing an income tax exemption for 4 contributions made to the fund, providing penalties, and 5 including effective date provisions. 6 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 7 TLSB 1841YH (2) 87 aw/sc
H.F. 101 Section 1. Section 68A.603, Code 2017, is amended to read 1 as follows: 2 68A.603 Rules promulgated. 3 The ethics and campaign disclosure board shall administer 4 the provisions of sections 68A.601 through 68A.609 , 68A.602, 5 and 68A.604 through 68A.610 and shall promulgate all necessary 6 rules in accordance with chapter 17A . 7 Sec. 2. NEW SECTION . 68A.610 Checkoff —— income tax —— 8 voter-owned Iowa clean elections. 9 A person whose state income tax liability for any taxable 10 year is five dollars or more may direct that five dollars 11 of that liability be paid over to the voter-owned Iowa 12 clean elections fund, as established in section 68A.823, 13 when submitting the person’s state income tax return to the 14 department of revenue. In the case of a joint return of 15 husband and wife having a state income tax liability of ten 16 dollars or more, each spouse may direct that five dollars 17 be paid to the fund. The director of revenue shall provide 18 space for the voter-owned Iowa clean elections fund income 19 tax checkoff on the income tax form. An explanation shall 20 be included which clearly states that the checkoff does not 21 constitute an additional tax liability. The action taken by a 22 person for the checkoff is irrevocable. 23 Sec. 3. NEW SECTION . 68A.801 Definitions. 24 For the purposes of this subchapter, unless the context 25 otherwise requires: 26 1. “Allowable contribution” means a qualifying contribution 27 or a seed money contribution. 28 2. “Board” means the Iowa ethics and campaign disclosure 29 board established under section 68B.32. 30 3. “Clean election campaign qualifying period” means the 31 period during which candidates are permitted to collect 32 qualifying contributions in order to qualify for clean election 33 campaign funding. The period begins ninety days before the 34 beginning of the primary election campaign period and ends 35 -1- LSB 1841YH (2) 87 aw/sc 1/ 29
H.F. 101 thirty days before the beginning of the primary election 1 campaign period. 2 4. “Coordination” means a payment made for a communication 3 or anything of value that is for the purpose of influencing the 4 outcome of an election and that is made by a person according 5 to at least one of the following: 6 a. In cooperation, consultation, or concert with, at 7 the request or suggestion of, or pursuant to, a particular 8 understanding with a candidate, a candidate’s committee, or an 9 agent acting on behalf of a candidate or candidate’s committee. 10 b. For the dissemination, distribution, or republication, 11 in whole or in part, of any broadcast or any written, graphic, 12 or other form of campaign material prepared by a candidate, 13 a candidate’s committee, or an agent of a candidate or 14 candidate’s committee. 15 c. Based on specific information about the candidate’s 16 plans, projects, or needs provided to the person making the 17 payment by the candidate or the candidate’s agent who provides 18 the information with a view toward having the payment made. 19 d. If in the same election cycle in which the payment is 20 made, the person making the payment is serving or has served as 21 a member, employee, fund-raiser, or agent of the candidate or 22 candidate’s committee in an executive or policymaking position. 23 e. If the person making the payment has served in any formal 24 policy or advisory position with the candidate’s campaign or 25 has participated in strategic or policymaking discussions with 26 the candidate’s campaign relating to the candidate’s pursuit of 27 nomination for election, or election, to office, in the same 28 election cycle as the election cycle in which the payment is 29 made. 30 f. If the person making the payment retains the professional 31 services of an individual or person who, in a nonministerial 32 capacity, has provided or is providing campaign-related 33 services in the same election cycle to a candidate who 34 is pursuing the same nomination or election as any of the 35 -2- LSB 1841YH (2) 87 aw/sc 2/ 29
H.F. 101 candidates to whom the communication refers. For purposes 1 of this section, “professional services” includes services in 2 support of a candidate’s pursuit of nomination for election or 3 election to office such as polling, media advice, direct mail, 4 fund-raising, or campaign research services. 5 5. “Electioneering communication” means any communication 6 that refers to a clearly identified candidate for elected 7 public office if the communication has the effect of 8 encouraging or discouraging a vote for the candidate, 9 regardless of whether the communication expressly advocates a 10 vote for or against the candidate. 11 6. “Excess expenditure amount” means the amount of 12 money spent or obligated to be spent by a nonparticipating 13 candidate in excess of the clean money amount available to a 14 participating candidate running for the same office. 15 7. “Express advocacy” means the same as defined in section 16 68A.102. 17 8. “General election campaign period” means the period 18 beginning the day after the primary election and ending on the 19 day of the general election. 20 9. “Independent candidate” means a candidate who does not 21 represent a political party as defined by section 43.2. 22 10. “Independent expenditure” means an expenditure made 23 by a person or group of persons other than a candidate or 24 candidate’s committee that meets both of the following 25 conditions: 26 a. The expenditure is made for a communication that contains 27 express advocacy. 28 b. The expenditure is made without the participation or 29 cooperation of and without coordination with a candidate or a 30 candidate’s committee. 31 11. “Nonparticipating candidate” means a candidate who is 32 on the ballot but has chosen not to apply for clean election 33 campaign funding or a candidate who is on the ballot and 34 has applied for but has not satisfied the requirements for 35 -3- LSB 1841YH (2) 87 aw/sc 3/ 29
H.F. 101 receiving clean election campaign funding. 1 12. “Participating candidate” means a candidate who 2 qualifies for clean election campaign funding. Such candidates 3 are eligible to receive clean election campaign funding during 4 primary or general election campaign periods. 5 13. “Party candidate” means a candidate who represents a 6 political party as defined by section 43.2. 7 14. “Primary election campaign period” means the period 8 beginning ninety days before the primary election and ending on 9 the day of the primary election. 10 15. “Qualifying contribution” means a contribution of five 11 dollars or more that is received during the designated clean 12 election campaign qualifying period by a candidate seeking to 13 become eligible for clean election campaign funding and that is 14 acknowledged by a written receipt identifying the contributor. 15 However, if the annual median household income of a legislative 16 district is at or below one hundred percent of the most recent 17 federal poverty guideline based on United States census bureau 18 data, the qualifying contribution is one dollar. 19 16. “Seed money contribution” means a contribution of no 20 more than one hundred dollars made by an individual person who 21 is at least eighteen years of age during the seed money period, 22 but specifically excludes all of the following: 23 a. Payments by a membership organization for the costs of 24 communications to its members. 25 b. Payments by a membership organization for the purpose of 26 facilitating the making of qualifying contributions. 27 c. The cash value of volunteer activity, including the 28 payment of incidental expenses of volunteers. 29 17. “Seed money period” means the period beginning the 30 day following the previous general election for that office 31 and ending on the last day of the clean election campaign 32 qualifying period. The “seed money period” is the exploratory 33 period during which candidates who wish to become eligible 34 for clean election campaign funding for the next elections 35 -4- LSB 1841YH (2) 87 aw/sc 4/ 29
H.F. 101 are permitted to raise and spend a limited amount of private 1 seed money, from contributions of up to one hundred dollars 2 per individual, for the purpose of determining whether to 3 become a candidate and fulfilling the clean election campaign 4 eligibility requirements. 5 Sec. 4. NEW SECTION . 68A.802 Eligibility for party 6 candidates. 7 1. A party candidate qualifies as a participating candidate 8 for the primary election campaign period if the candidate does 9 both of the following: 10 a. The candidate files a declaration with the board that 11 the candidate has complied and will comply with all of the 12 requirements of this subchapter, including the requirement 13 that during the seed money period and the clean election 14 campaign qualifying period the candidate not accept or 15 spend private contributions from any source other than seed 16 money contributions and clean election campaign qualifying 17 contributions, unless the provisions of section 68A.804 apply. 18 b. The candidate meets both of the following qualifying 19 contribution requirements before the close of the clean 20 election campaign qualifying period: 21 (1) A party candidate must collect both qualifying 22 contributions and signatures as follows: 23 (a) For the office of governor, from five hundred eligible 24 electors in each congressional district. 25 (b) For statewide office other than governor, from two 26 hundred fifty eligible electors in each congressional district. 27 (c) For the Iowa senate, from two hundred eligible electors 28 in the senate candidate’s electoral district. 29 (d) For the Iowa house of representatives, from one hundred 30 eligible electors in the house candidate’s electoral district. 31 (2) Each qualifying contribution must meet all requirements 32 of this section. 33 2. Contributors shall be eligible electors who reside 34 within the candidate’s electoral district and who are therefore 35 -5- LSB 1841YH (2) 87 aw/sc 5/ 29
H.F. 101 eligible to vote for that candidate. 1 3. Qualifying contributions shall be: 2 a. Made in cash, check, money order, or credit or debit 3 card. 4 b. Gathered by the candidate personally or by volunteers who 5 do not receive compensation. 6 c. Acknowledged by a receipt to the contributor, with 7 a copy to be kept by the candidate and a third copy to be 8 submitted to the board. The receipt shall include a signed 9 statement that the contributor understands that the purpose of 10 the contribution is to help the candidate qualify for clean 11 election campaign funding and that the contribution is made 12 without coercion or reimbursement. The receipt shall include 13 the contributor’s signature, printed name, home address, and 14 telephone number, and the name of the candidate on whose behalf 15 the contribution is made. 16 d. Paid over to the board for deposit in the voter-owned 17 Iowa clean elections fund established under section 68A.823, 18 with the signed and completed receipt, according to a schedule 19 and procedure to be determined by the board. A contribution 20 submitted as a qualifying contribution that does not include 21 the signed and completed receipt shall not be counted as a 22 qualifying contribution. 23 4. A party candidate qualifies as a participating candidate 24 for the general election campaign period when the candidate 25 does both of the following: 26 a. The candidate has met all of the applicable requirements 27 of this subchapter and filed a declaration with the board 28 that the candidate has fulfilled and will fulfill all of the 29 requirements of a participating candidate as stated in this 30 subchapter. 31 b. As a participating candidate during the primary election 32 campaign period, the candidate had the highest number of votes 33 of the candidates contesting the primary election from the 34 candidate’s respective party and won the party’s nomination. 35 -6- LSB 1841YH (2) 87 aw/sc 6/ 29
H.F. 101 Sec. 5. NEW SECTION . 68A.803 Eligibility for independent 1 candidates. 2 1. An independent candidate qualifies as a participating 3 candidate for the primary election campaign period if the 4 candidate does both of the following: 5 a. The candidate files a declaration with the board that 6 the candidate has complied and will comply with all of the 7 requirements of this subchapter, including the requirement 8 that during the seed money period and the clean election 9 campaign qualifying period the candidate not accept or 10 spend private contributions from any source other than seed 11 money contributions and clean election campaign qualifying 12 contributions, unless the provisions of section 68A.804 apply. 13 b. The candidate meets the following qualifying contribution 14 requirements before the close of the clean election campaign 15 qualifying period: 16 (1) An independent candidate shall collect the same number 17 of qualifying contributions as required of a party candidate 18 for the same office under section 68A.802. 19 (2) Each qualifying contribution must meet all requirements 20 of this section. 21 2. Contributors shall be registered voters who reside 22 within the candidate’s electoral district and who are therefore 23 eligible to vote for that candidate. 24 3. Qualifying contributions shall be: 25 a. Made in cash, check, money order, or credit or debit 26 card. 27 b. Gathered by the candidate personally or by volunteers who 28 do not receive compensation. 29 c. Acknowledged by a receipt to the contributor, with 30 a copy to be kept by the candidate and a third copy to be 31 submitted to the board. The receipt shall include a signed 32 statement that the contributor understands that the purpose of 33 the contribution is to help the candidate qualify for clean 34 election campaign funding and that the contribution is made 35 -7- LSB 1841YH (2) 87 aw/sc 7/ 29
H.F. 101 without coercion or reimbursement. The receipt shall include 1 the contributor’s signature, printed name, home address, and 2 telephone number, and the name of the candidate on whose behalf 3 the contribution is made. 4 d. Paid over to the board for deposit in the voter-owned 5 Iowa clean elections fund established under section 68A.823, 6 with the signed and completed receipt, according to a schedule 7 and procedure to be determined by the board. A contribution 8 submitted as a qualifying contribution that does not include 9 the signed and completed receipt shall not be counted as a 10 qualifying contribution. 11 4. An independent candidate qualifies as a participating 12 candidate for the general election campaign period when the 13 candidate does both of the following: 14 a. If, prior to the primary election, the candidate has met 15 all of the applicable requirements of this subchapter and filed 16 a declaration with the board that the candidate has fulfilled 17 and will fulfill all of the requirements of a participating 18 candidate as stated in this subchapter. 19 b. If, during the primary election campaign period, the 20 candidate has fulfilled all the requirements of a participating 21 candidate as stated in this subchapter. 22 Sec. 6. NEW SECTION . 68A.804 Transition rule for current 23 election cycle. 24 During the election cycle in effect on the date of enactment 25 of this Act, a candidate may be certified as a participating 26 candidate, notwithstanding the acceptance of contributions 27 or making of expenditures from private funds before the date 28 of enactment of this Act that would, absent this section, 29 disqualify the candidate as a participating candidate, provided 30 that any private funds accepted but not expended before the 31 date of enactment of this Act shall either be returned to 32 the contributor or submitted to the board for deposit in the 33 voter-owned Iowa clean elections fund established under section 34 68A.823. 35 -8- LSB 1841YH (2) 87 aw/sc 8/ 29
H.F. 101 Sec. 7. NEW SECTION . 68A.805 Continuing obligation to 1 comply. 2 A participating candidate who accepts any benefits under 3 section 68A.813 during the primary election campaign period 4 shall comply with all the requirements of this subchapter 5 through any remaining time during the primary election campaign 6 period as well as through the general election campaign period 7 whether or not the candidate continues to accept benefits. 8 Sec. 8. NEW SECTION . 68A.806 Contributions and 9 expenditures. 10 1. During the primary and general election campaign 11 periods, a participating candidate who has voluntarily agreed 12 to participate in clean election campaign financing shall not 13 accept private contributions from any source other than the 14 candidate’s political party, as specified in section 68A.808. 15 2. A person shall not make a contribution in violation 16 of section 68A.502. A participating candidate who receives 17 a qualifying contribution or a seed money contribution that 18 is not from the person listed on the receipt as required by 19 this subchapter shall pay to the board for deposit in the 20 voter-owned Iowa clean elections fund established under section 21 68A.823 the entire amount of such contribution. 22 3. The board shall issue each participating candidate a 23 card known as the “clean election campaign debit card”, and a 24 line of debit entitling the candidate to draw clean election 25 campaign funds to pay for all campaign costs and expenses up to 26 the amount of funding the candidate has received. During the 27 primary and general election campaign periods, a participating 28 candidate shall pay by means of the board’s clean election 29 campaign debit card. A participating candidate shall not pay 30 campaign costs by cash, check, money order, loan, or by any 31 other financial means other than the clean election campaign 32 debit card. 33 4. Eligible candidates shall furnish complete campaign 34 records, including all records of seed money contributions and 35 -9- LSB 1841YH (2) 87 aw/sc 9/ 29
H.F. 101 qualifying contributions, to the board at regular filing times, 1 or on request by the board. Candidates shall cooperate with 2 any audit or examination conducted or ordered by the board. 3 Sec. 9. NEW SECTION . 68A.807 Nonparticipating candidates 4 —— contribution limits. 5 Nonparticipating candidates shall be subject to the 6 following contribution limits: 7 1. Candidates for statewide office: 8 a. One thousand dollars in the aggregate per individual 9 contribution. 10 b. Five thousand dollars in the aggregate per political 11 committee contribution. 12 2. Candidates for the Iowa senate and house of 13 representatives: 14 a. Five hundred dollars in the aggregate per individual 15 contribution. 16 b. One thousand dollars in the aggregate per political 17 committee contribution. 18 Sec. 10. NEW SECTION . 68A.808 Political party contributions 19 and expenditures. 20 1. Participating candidates may accept monetary or in-kind 21 contributions from political parties provided that the 22 aggregate amount of such contributions from all political party 23 committees combined does not exceed the equivalent of five 24 percent of the clean election campaign financing amount for 25 that office. 26 2. In-kind contributions made during a general election 27 campaign period on behalf of a group of the party’s candidates 28 shall not be considered a prohibited party contribution or 29 count against the five percent limit established in subsection 30 1 if such group includes at least fifty-one percent of the 31 candidates whose names will appear on the general election 32 ballot in the political subdivision represented by the party 33 committee making such in-kind contributions. 34 3. Contributions made to, and expenditures made by, 35 -10- LSB 1841YH (2) 87 aw/sc 10/ 29
H.F. 101 political parties during primary and general campaign 1 periods shall be reported to the board on the same basis as 2 contributions and expenditures made to or by candidates. 3 4. This section and this subchapter shall not prevent 4 political party funds from being used for any of the following: 5 a. General operating expenses of the party. 6 b. Conventions. 7 c. Nominating and endorsing candidates. 8 d. Identifying, researching, and developing the party’s 9 positions on issues. 10 e. Party platform activities. 11 f. Voter registration drives that are not specific to any 12 candidate. 13 g. Get-out-the-vote drives that are not specific to any 14 candidate. 15 h. Travel expenses for noncandidate party leaders and staff. 16 i. Other party-building activities, as defined by rule of 17 the board, that are not specific to any candidate. 18 j. Employing a staff person to provide election services to 19 two or more candidates. 20 Sec. 11. NEW SECTION . 68A.809 Use of personal funds. 21 1. Personal funds contributed as seed money by a candidate 22 seeking to become eligible as a participating candidate or by 23 the candidate’s spouse shall not exceed one hundred dollars per 24 contributor. 25 2. Personal funds shall not be used to meet the qualifying 26 contribution requirement except for one five-dollar 27 contribution from the candidate and one five-dollar 28 contribution from the candidate’s spouse. 29 Sec. 12. NEW SECTION . 68A.810 Seed money. 30 1. The only private contributions a candidate seeking 31 to become eligible for clean election campaign funding shall 32 accept, other than qualifying contributions, are seed money 33 contributions contributed by individual persons who are at 34 least eighteen years of age prior to the end of the clean 35 -11- LSB 1841YH (2) 87 aw/sc 11/ 29
H.F. 101 election campaign qualifying period. 1 2. A seed money contribution shall not exceed one hundred 2 dollars, and the aggregate amount of seed money contributions 3 accepted by a candidate seeking to become eligible for clean 4 election campaign funding shall not exceed the relevant limit, 5 as follows: 6 a. Twenty-five thousand dollars for a candidate team running 7 for governor and lieutenant governor. 8 b. Fifteen thousand dollars for a candidate running for 9 statewide office other than governor or lieutenant governor. 10 c. Two thousand dollars for a candidate running for the Iowa 11 senate. 12 d. One thousand dollars for a candidate running for the Iowa 13 house of representatives. 14 3. Receipts for seed money contributions shall include 15 the contributor’s signature, printed name, street address and 16 zip code, telephone number, occupation, and name of employer. 17 Contributions shall not be accepted if the required disclosure 18 information is not received. 19 4. Seed money shall be spent only during the clean election 20 campaign qualifying period. Seed money shall not be spent 21 during the primary or general election campaign periods. 22 5. Within forty-eight hours after the close of the clean 23 election campaign qualifying period, candidates seeking to 24 become eligible for clean election campaign funding shall do 25 both of the following: 26 a. Fully disclose all seed money contributions and 27 expenditures to the board. 28 b. Pay over to the board for deposit in the voter-owned 29 Iowa clean elections fund any seed money the candidate has 30 raised during the designated seed money period that exceeds the 31 aggregate seed money limit. 32 Sec. 13. NEW SECTION . 68A.811 Participation in debates. 33 1. Participating candidates in contested races shall 34 participate in all of the following: 35 -12- LSB 1841YH (2) 87 aw/sc 12/ 29
H.F. 101 a. For the offices of governor and lieutenant governor: 1 (1) One one-hour debate during a contested primary 2 election. 3 (2) Two one-hour debates during a contested general 4 election. 5 b. For all other offices: 6 (1) One one-hour debate during a contested primary 7 election. 8 (2) One one-hour debate during a contested general 9 election. 10 2. Nonparticipating candidates for the same office whose 11 names will appear on the ballot shall be invited to join the 12 debates. 13 Sec. 14. NEW SECTION . 68A.812 Certification. 14 1. No more than five days after a candidate applies for 15 clean election campaign funding benefits, the board shall 16 certify that the candidate is or is not eligible to receive 17 clean election campaign funds. 18 2. The board may revoke a candidate’s eligibility if 19 the board determines that the candidate has violated the 20 requirements of this subchapter, in which case the candidate 21 shall repay all clean election campaign funds received by the 22 candidate. 23 3. The candidate’s request for certification shall be 24 signed by the candidate and the treasurer of the candidate’s 25 committee, both under penalty of perjury. 26 4. The board’s determination is final except that it is 27 subject to examination and audit by an outside agency and to 28 prompt judicial review, in compliance with rules promulgated by 29 the board in accordance with chapter 17A. 30 Sec. 15. NEW SECTION . 68A.813 Benefits provided to 31 candidates eligible to receive clean election campaign funding. 32 1. Candidates who qualify for clean election campaign 33 funding for primary and general elections shall receive all of 34 the following: 35 -13- LSB 1841YH (2) 87 aw/sc 13/ 29
H.F. 101 a. Clean election campaign funding from the board for each 1 election, the amount of which is specified in section 68A.815. 2 This funding may be used to finance any and all campaign 3 expenses during the particular campaign period for which it is 4 received. 5 b. Additional clean election campaign funding to match 6 any excess expenditure amount spent by a nonparticipating 7 candidate, as specified in section 68A.817. 8 c. Additional clean election campaign funding to match any 9 independent expenditure made in opposition to their candidacies 10 or on behalf of their opponents’ candidacies, as specified in 11 section 68A.819. 12 d. Additional clean election campaign funding to match 13 any electioneering communication expenditure, as specified in 14 section 68A.820. 15 2. The maximum aggregate amount of additional funding above 16 the initial allocation determined under section 68A.815 that 17 a participating candidate shall receive to match independent 18 expenditures, the excess expenditures of nonparticipating 19 candidates, and electioneering communication expenditures shall 20 be two hundred percent of the full amount of clean election 21 campaign funding allocated to a participating candidate for a 22 particular primary or general election campaign period. 23 Sec. 16. NEW SECTION . 68A.814 Schedule of clean election 24 campaign funding payments. 25 1. An eligible candidate shall receive clean election 26 campaign funding for the primary election campaign period 27 on the date on which the board certifies the candidate as a 28 participating candidate. This certification shall take place 29 no later than five days after the candidate has submitted the 30 required number of qualifying contributions and a declaration 31 stating that the candidate has complied with all other 32 requirements for eligibility as a participating candidate, but 33 no earlier than the beginning of the primary election campaign 34 period. 35 -14- LSB 1841YH (2) 87 aw/sc 14/ 29
H.F. 101 2. An eligible candidate shall receive clean election 1 campaign funding for the general election campaign period 2 within forty-eight hours after certification of the primary 3 election results. 4 Sec. 17. NEW SECTION . 68A.815 Determination of clean 5 election campaign funding amounts. 6 1. a. For party candidates, the amount of clean election 7 campaign funding for a contested primary election is as 8 follows: 9 (1) Seven hundred fifty thousand dollars for a candidate 10 team running for governor and lieutenant governor. 11 (2) Seventy-five thousand dollars for a candidate for 12 statewide office other than governor and lieutenant governor. 13 (3) Twenty-two thousand five hundred dollars for a 14 candidate running for the Iowa senate. 15 (4) Fifteen thousand dollars for a candidate running for the 16 Iowa house of representatives. 17 b. The clean election campaign funding amount for an 18 eligible party candidate in an uncontested primary election 19 is twenty-five percent of the amount provided in a contested 20 primary election. 21 c. In a contested general election, if an eligible party 22 candidate or all of the candidates of the candidate’s party 23 combined received at least twenty percent of the total number 24 of votes cast for all candidates seeking that office in 25 the most recent primary election or in the previous general 26 election, the candidate shall receive the full amount of clean 27 election campaign funding for the general election, as follows: 28 (1) Three million dollars for a candidate team running for 29 governor and lieutenant governor. 30 (2) Two hundred thousand dollars for a candidate for 31 statewide office other than governor and lieutenant governor. 32 (3) Forty thousand dollars for a candidate running for the 33 Iowa senate. 34 (4) Thirty thousand dollars for a candidate running for the 35 -15- LSB 1841YH (2) 87 aw/sc 15/ 29
H.F. 101 Iowa house of representatives. 1 d. The clean election campaign funding amount for an 2 eligible party candidate in an uncontested general election 3 is ten percent of the amount provided in a contested general 4 election for the same office. 5 2. a. For eligible independent candidates, the clean 6 election campaign funding amount for the primary election 7 campaign period is twenty-five percent of the amount of clean 8 election campaign funding received by a party candidate in a 9 contested primary election for the same office. 10 b. The clean election campaign funding amount for an 11 eligible independent candidate in the general election is the 12 same as the full amount received by a party candidate in the 13 general election for the same office. 14 c. After the first cycle of clean election campaign 15 financing elections, the board shall modify all clean election 16 campaign funding amounts based on the percentage increase in 17 the consumer price index, for all urban consumers, United 18 States city average, as published in the federal register 19 by the United States department of labor, bureau of labor 20 statistics, that reflects the percentage increase in the 21 consumer price index for the twelve-month period ending 22 December 31 of the previous year. 23 Sec. 18. NEW SECTION . 68A.816 Expenditures made with clean 24 election campaign funds. 25 1. The clean election campaign funding received by a 26 participating candidate shall be used only for the purpose of 27 defraying that candidate’s campaign-related expenses during 28 the particular election campaign period for which the clean 29 election campaign funding was received. 30 2. Payments shall not be used for the following: 31 a. Payments that are in violation of the law. 32 b. Payments that repay any personal, family, or business 33 loans, expenditures, or debts. 34 Sec. 19. NEW SECTION . 68A.817 Disclosure of excess spending 35 -16- LSB 1841YH (2) 87 aw/sc 16/ 29
H.F. 101 by nonparticipating candidates. 1 1. If a nonparticipating candidate’s total expenditures 2 exceed the amount of clean election campaign funding allocated 3 to the candidate’s clean election campaign opponent, the 4 candidate shall declare to the board within forty-eight hours 5 every excess expenditure amount that, in the aggregate, is more 6 than one thousand dollars. 7 2. During the last twenty days before the end of the 8 relevant campaign period, a nonparticipating candidate shall 9 declare to the board each excess expenditure amount over 10 five hundred dollars within twenty-four hours of when the 11 expenditure is made or obligated to be made. 12 3. The board may make its own determination as to whether 13 excess expenditures have been made by nonparticipating 14 candidates. 15 4. Upon receiving an excess expenditure declaration, the 16 board shall immediately release additional clean election 17 campaign funding to the opposing participating candidate 18 or candidates equal to the excess expenditure amount the 19 nonparticipating candidate has spent or intends to spend, 20 subject to the limit set forth in section 68A.813. 21 Sec. 20. NEW SECTION . 68A.818 Campaign advertisements. 22 All broadcast and print advertisements placed by candidates 23 or candidate’s committees shall, in addition to the 24 requirements of section 68A.405, include a clear written or 25 spoken statement indicating that the candidate has approved of 26 the contents of the advertisement. 27 Sec. 21. NEW SECTION . 68A.819 Disclosure of independent 28 expenditures —— additional clean election campaign funding. 29 1. Any person or group of persons who makes or obligates 30 to make an independent expenditure during a primary or general 31 election campaign period which, in the aggregate, exceeds one 32 thousand dollars, shall report each expenditure within forty- 33 eight hours to the board. 34 2. The report to the board shall include a statement, 35 -17- LSB 1841YH (2) 87 aw/sc 17/ 29
H.F. 101 under penalty of perjury, by the person or persons making 1 the independent expenditure identifying the candidate the 2 independent expenditure is intended to help elect or defeat 3 and affirming that the expenditure is totally independent and 4 involves no coordination with a candidate or a political party. 5 a. An individual or organization may file a complaint with 6 the board if the candidate or the organization believes that 7 the statement according to this subsection is false. 8 b. A hearing on a complaint under this subsection shall be 9 held within three business days of filing and a decision issued 10 within seven days of filing. 11 3. Any person or group of persons who makes or obligates 12 to make an independent expenditure during the last twenty days 13 before the end of the relevant campaign period which, in the 14 aggregate, exceeds five hundred dollars, shall report each 15 expenditure within twenty-four hours to the board. 16 4. Upon receiving a report that an independent expenditure 17 has been made or obligated to be made, the board shall 18 immediately release additional clean election campaign funding, 19 equal in amount to the cost of the independent expenditure, to 20 all participating candidates the independent expenditure is 21 intended to oppose or defeat, subject to the limit set forth 22 in section 68A.813. 23 Sec. 22. NEW SECTION . 68A.820 Electioneering communications 24 —— disclosure —— additional clean election campaign funding. 25 1. A person who makes or obligates to make a disbursement to 26 purchase an electioneering communication shall file a report 27 with the board not later than forty-eight hours after making or 28 obligating to make the disbursement, containing the following 29 information: 30 a. The amount of the disbursement. 31 b. The name and address of the person making the 32 disbursement. 33 c. The purpose of the electioneering communication. 34 2. Upon receiving a report that an electioneering 35 -18- LSB 1841YH (2) 87 aw/sc 18/ 29
H.F. 101 communication has been made or obligated to be made, and 1 upon determination that the electioneering communication can 2 reasonably be interpreted as having the effect of promoting 3 the defeat of a participating candidate or the election 4 of that candidate’s opponent, the board shall immediately 5 release to that candidate additional clean election campaign 6 funding, equal in amount to the cost of the electioneering 7 communication, subject to the limit set forth in section 8 68A.813. 9 Sec. 23. NEW SECTION . 68A.821 Voter information program. 10 1. The board shall establish and administer a nonpartisan 11 voter information program, including an advisory council 12 consisting of representatives of nonprofit organizations, 13 political parties, the media, and interested citizens. 14 2. The voter information program advisory council may 15 establish a voter information program for the purpose of 16 providing voters with election-related information and 17 fostering political dialogue and debate. 18 3. The voter information program advisory council 19 shall organize the publication and distribution of a voter 20 information guide that includes important information about the 21 following issues: 22 a. Candidates appearing on the ballot, including 23 biographical material submitted by the candidates. 24 b. Whether candidates are funding their campaigns with 25 public money or private money. 26 c. Policy statements by the candidates or their political 27 parties on issues designated by the council and other issues. 28 d. Candidates’ voting records. 29 Sec. 24. NEW SECTION . 68A.822 Debates. 30 1. A nonpartisan organization that is involved in 31 providing information to the public concerning elections, or a 32 nonpartisan organization that has been involved in education 33 and the advocacy of open, clean election and campaign laws for 34 at least five years, may host and sponsor voter-owned Iowa 35 -19- LSB 1841YH (2) 87 aw/sc 19/ 29
H.F. 101 clean election candidate debates in contested primary and 1 general elections. 2 2. All participating candidates shall participate in the 3 debates and all nonparticipating candidates for the same office 4 whose names will appear on the ballot shall be invited to join 5 the debates. 6 Sec. 25. NEW SECTION . 68A.823 Voter-owned Iowa clean 7 elections fund (VOICE) —— nature and purposes. 8 1. A voter-owned Iowa clean elections fund is established as 9 a separate fund within the office of the state treasurer, under 10 the control of the board, for the following purposes: 11 a. Providing public financing for the election campaigns of 12 certified participating candidates during primary election and 13 general election campaign periods. 14 b. Paying for the administrative and enforcement costs of 15 the board in relation to this subchapter. 16 2. The fund shall consist of moneys received pursuant to 17 section 68A.824. Notwithstanding section 8.33, unencumbered 18 or unobligated moneys and any interest earned on moneys in the 19 fund on June 30 of any fiscal year shall not revert to the 20 general fund of the state but shall remain in the fund and be 21 available for expenditure in subsequent years. 22 Sec. 26. NEW SECTION . 68A.824 Funding. 23 In addition to any moneys appropriated by the general 24 assembly to the voter-owned Iowa clean elections fund 25 established in section 68A.823, the following moneys shall be 26 deposited in the fund: 27 1. The qualifying contributions required of candidates 28 seeking to become certified as participating candidates 29 according to section 68A.802 or 68A.803 and candidates’ excess 30 qualifying contributions. 31 2. Moneys credited to the fund pursuant to sections 68A.610 32 and 556.18. 33 3. The excess seed money contributions of candidates 34 seeking to become certified as participating candidates. 35 -20- LSB 1841YH (2) 87 aw/sc 20/ 29
H.F. 101 4. Moneys distributed to any participating candidate 1 who does not remain a candidate until the primary or general 2 election for which they were distributed. 3 5. Civil penalties levied by the board against candidates 4 for violations of this subchapter. 5 6. Voluntary donations made directly to the fund. 6 7. Any other sources of revenue designated by the general 7 assembly. 8 Sec. 27. NEW SECTION . 68A.825 Powers and procedures. 9 The board shall have the following powers and duties, in 10 addition to those granted in this chapter and chapter 68B, when 11 administering this subchapter: 12 1. After every primary and general election, the board 13 may conduct random audits and investigations to ensure 14 compliance with this subchapter. The subjects of such audits 15 and investigations shall be selected on the basis of impartial 16 criteria established by a vote of at least four members of the 17 board. 18 2. a. The board may investigate anonymous complaints. 19 b. The identity of a complainant may be kept confidential 20 if the complainant states in the complaint that revealing 21 the identity of the complainant could reasonably result in 22 disciplinary action or loss of employment. 23 3. The board may seek injunctions when all of the following 24 conditions are met: 25 a. There is a substantial likelihood that a violation of 26 this subchapter is occurring or is about to occur. 27 b. The failure to act expeditiously will result in 28 irreparable harm to a party affected by the violation or 29 potential violation. 30 c. Expeditious action will not cause undue harm or prejudice 31 to the interests of others. 32 d. The public interest would be best served by the issuance 33 of an injunction. 34 4. The board may levy civil penalties for violations of 35 -21- LSB 1841YH (2) 87 aw/sc 21/ 29
H.F. 101 this subchapter. Civil penalties shall be deposited in the 1 voter-owned Iowa clean elections fund. 2 5. The board shall refer criminal violations to the county 3 attorney or attorney general for prosecution. 4 6. The board may participate fully in any actions filed 5 under this section. 6 7. The board shall adopt rules pursuant to chapter 17A as 7 necessary to administer this subchapter. 8 Sec. 28. NEW SECTION . 68A.826 Civil actions. 9 1. A citizen of this state who believes a candidate has 10 violated this subchapter may pursue a civil action in a court 11 of relevant jurisdiction, provided that both of the following 12 are true: 13 a. The citizen has previously filed a complaint with the 14 board regarding the same alleged violation. 15 b. The board has failed to make a determination within 16 thirty days of the filing of the complaint. 17 2. A complainant who prevails in a civil action charging 18 a violation of this subchapter shall be entitled to receive 19 reasonable attorney fees and court costs from the defendant. 20 3. If a court in which a civil action has been filed under 21 subsection 1 finds that the complaint in that action was 22 made frivolously or without cause, the court may require the 23 complainant to pay the costs of the board, the court, and the 24 defendant parties. 25 Sec. 29. NEW SECTION . 68A.827 Board reports. 26 1. The board shall report to the general assembly after each 27 election cycle. 28 2. The report shall include a detailed summary of all 29 seed money contributions, qualifying contributions, and clean 30 election campaign funding benefits received, and expenditures 31 made, by all participating candidates. The report shall also 32 include a summary and evaluation of the board’s activities and 33 recommendations relating to the implementation, administration, 34 and enforcement of this subchapter. 35 -22- LSB 1841YH (2) 87 aw/sc 22/ 29
H.F. 101 Sec. 30. NEW SECTION . 68A.828 Repayments of excess 1 expenditures. 2 1. If a participating candidate spends or obligates to spend 3 more than the clean election campaign funding the candidate 4 receives, and if such is determined not to be an amount that 5 had or could have been expected to have a significant impact 6 on the outcome of the election, the candidate shall personally 7 repay to the voter-owned Iowa clean elections fund an amount 8 equal to the excess. 9 2. If a participating candidate spends or obligates to spend 10 more than the clean election campaign funding the candidate 11 receives, and if such is determined to be an amount that had or 12 could have been expected to have a significant impact on the 13 outcome of the election, the candidate shall personally repay 14 to the voter-owned Iowa clean elections fund an amount equal to 15 five times the value of the excess. 16 Sec. 31. NEW SECTION . 68A.829 Penalties. 17 1. A candidate shall not knowingly accept more benefits than 18 those to which the candidate is entitled, spend more than the 19 amount of clean election campaign funding received, or misuse 20 such clean election campaign funding benefits or clean election 21 campaign funding. 22 2. If a violation of subsection 1 was intentional and 23 involved an amount that had or could have been expected to 24 have a significant impact on the outcome of the election, the 25 candidate commits an aggravated misdemeanor. 26 3. If it is determined that the violation of subsection 27 1 was intentional and involved an amount that had or could 28 have been expected to have a significant impact on the 29 outcome of the election, and if, in the judgment of the 30 board, the violation is believed to have contributed to the 31 violator winning the election, the board may recommend to 32 the appropriate authority that proceedings be commenced to 33 remove the violator from office or to impeach the violator if 34 applicable. 35 -23- LSB 1841YH (2) 87 aw/sc 23/ 29
H.F. 101 4. A person shall not provide false information to the board 1 or conceal or withhold information from the board. A violation 2 of this subsection is an aggravated misdemeanor. 3 Sec. 32. NEW SECTION . 68A.830 Local provision. 4 Each city council, school board, and county board of 5 supervisors shall have the authority to adopt and fund a 6 voter-owned Iowa clean elections fund, consistent with this 7 subchapter, for local government elections. 8 Sec. 33. Section 422.7, Code 2017, is amended by adding the 9 following new subsection: 10 NEW SUBSECTION . 59. Subtract, to the extent not otherwise 11 excluded, up to two hundred dollars of the amount contributed 12 to the voter-owned Iowa clean elections fund pursuant to 13 section 68A.824, subsection 6. 14 Sec. 34. Section 422.12E, subsection 1, Code 2017, is 15 amended to read as follows: 16 1. For tax years beginning on or after January 1, 2019, 17 there shall be allowed no more than four income tax return 18 checkoffs on each income tax return. For tax years beginning 19 on or after January 1, 2017, when the same four income tax 20 return checkoffs have been provided on the income tax return 21 for two consecutive years, the two checkoffs for which the 22 least amount has been contributed, in the aggregate for the 23 first tax year and through March 15 of the second tax year, are 24 repealed. This section does not apply to the income tax return 25 checkoff checkoffs provided in section sections 68A.601 and 26 68A.610 . 27 Sec. 35. NEW SECTION . 422.12I Income tax checkoff for 28 voter-owned Iowa clean elections fund. 29 A person who files an individual or a joint income tax 30 return with the department of revenue under section 422.13 31 may designate a contribution to the voter-owned Iowa clean 32 elections fund authorized pursuant to section 68A.610. 33 Sec. 36. Section 556.18, subsection 2, Code 2017, is amended 34 by adding the following new paragraph: 35 -24- LSB 1841YH (2) 87 aw/sc 24/ 29
H.F. 101 NEW PARAGRAPH . e. Ten million dollars to be deposited 1 in the voter-owned Iowa clean elections fund established in 2 section 68A.823. 3 Sec. 37. Section 556.18, subsection 3, Code 2017, is amended 4 to read as follows: 5 3. The treasurer of state shall annually credit all moneys 6 received under section 556.4 to the general fund of the state. 7 Moneys credited to the general fund of the state pursuant to 8 this subsection are subject to the requirements of subsections 9 1 and 2 and section 8.60 . However, if the amount collected 10 under subsection 2, paragraph “e” , does not equal ten million 11 dollars, the treasurer of state shall annually pay over an 12 amount received under section 556.4 as necessary to bring the 13 amount deposited in the voter-owned Iowa clean elections fund 14 to ten million dollars. 15 Sec. 38. SEVERABILITY. The provisions of this Act are 16 severable as provided in section 4.12. 17 Sec. 39. IMPLEMENTATION OF ACT. Section 25B.2, subsection 18 3, shall not apply to this Act. 19 Sec. 40. EFFECTIVE DATES. 20 1. Except as provided in subsection 2, this Act takes effect 21 November 4, 2020. 22 2. The following provision or provisions of this Act take 23 effect January 1, 2018: 24 a. The section of this Act enacting section 68A.610. 25 b. The section of this Act enacting section 422.12I. 26 c. The section of this Act amending section 422.7. 27 d. The section of this Act amending section 556.18. 28 EXPLANATION 29 The inclusion of this explanation does not constitute agreement with 30 the explanation’s substance by the members of the general assembly. 31 This bill amends Code chapter 68A, relating to campaign 32 finance law, by creating a voluntary mechanism for publicly 33 financed elections and establishing contribution limits for 34 candidates who do not participate in the public financing 35 -25- LSB 1841YH (2) 87 aw/sc 25/ 29
H.F. 101 process. 1 The bill enacts a process for public financing for statewide 2 and legislative elections and enacts new Code section 68A.801, 3 providing definitions for key terms related to this process. 4 New Code section 68A.823 establishes a separate, 5 nonreverting fund in the state treasury to be known as the 6 voter-owned Iowa clean elections (VOICE) fund, and new Code 7 section 68A.824 provides sources of revenue for the fund. 8 New Code sections 68A.802 and 68A.803 specify the 9 eligibility procedures for both party and independent 10 candidates to become participating candidates and specify 11 the number of and details for collection of qualifying 12 contributions. 13 New Code section 68A.805 provides that any candidate who 14 accepts benefits during the primary election campaign period 15 must continue to comply with the requirements of the public 16 financing process, even if the candidate stops accepting 17 benefits of the program at any point during the primary or 18 general election campaign periods. 19 New Code section 68A.806 prohibits a participating candidate 20 from accepting private funding during the primary and general 21 election campaign periods other than certain permitted party 22 funding. Contributions in the name of another person are 23 prohibited and subject to payment to the board as are any 24 applicable penalties. The use of personal funds for seed money 25 or as qualifying contributions is limited by new Code section 26 68A.809. 27 New Code section 68A.807 establishes contribution limits for 28 those candidates who choose not to participate in the public 29 financing process. 30 New Code section 68A.808 limits political party 31 contributions and expenditures on behalf of participating 32 candidates. 33 New Code section 68A.810 details the collection of private 34 contributions for use as seed money, limited by new Code 35 -26- LSB 1841YH (2) 87 aw/sc 26/ 29
H.F. 101 section 68A.809 to a $100 contribution per individual person 1 at least 18 years of age, and also limited in the aggregate in 2 differing amounts for candidates for governor and lieutenant 3 governor, for other statewide candidates, for Iowa senate 4 candidates, and for Iowa house of representatives candidates. 5 Seed money expenditures are limited to the clean election 6 campaign qualifying period and seed money contributions and 7 expenditures must be fully disclosed at the end of the public 8 financing qualifying period. 9 New Code section 68A.812 provides for a certification 10 process after a candidate applies for public financing campaign 11 funding benefits and requires repayment of funds if eligibility 12 is revoked. The bill provides for audit and judicial review of 13 certification decisions made by the board. 14 New Code section 68A.813 provides certain benefits and 15 obligations for participating candidates, including specified 16 amounts of public funding pursuant to new Code section 17 68A.815, mandatory participation in debates pursuant to new 18 Code sections 68A.811 and 68A.822, and, pursuant to new Code 19 section 68A.817, additional limited public funding to respond 20 to certain excess expenditures by nonparticipating candidates, 21 independent expenditures, and electioneering communications 22 expenditures. 23 New Code section 68A.814 provides for a schedule of payments 24 to participating candidates, and new Code section 68A.815 25 specifies differing total amounts for primary and general 26 elections for candidates for governor and lieutenant governor, 27 for other statewide candidates, for Iowa senate candidates, 28 and for Iowa house of representatives candidates. Alternate 29 amounts are provided for uncontested races. Pursuant to new 30 Code section 68A.816, clean election campaign funding payments 31 must be used only for campaign-related expenses, and cannot be 32 used for payments in violation of law or to repay personal or 33 business loans, expenditures, or debts. 34 New Code section 68A.817 provides that nonparticipating 35 -27- LSB 1841YH (2) 87 aw/sc 27/ 29
H.F. 101 candidates must disclose within 48 hours every expenditure 1 in excess of the public financing funding allocated to the 2 candidate’s participating opponent that in the aggregate is 3 more than $1,000. Certain other reporting requirements apply 4 during the last 20 days of a campaign. 5 All candidates must include a statement with all 6 advertisements indicating that the candidate has approved of 7 the contents of the advertisement, pursuant to new Code section 8 68A.818. 9 New Code section 68A.819 provides that persons making 10 certain independent expenditures must report such expenditures 11 to the board, along with an affidavit affirming that the 12 expenditure has not been coordinated with the candidate or 13 party. Alleged violations of the coordination affirmation are 14 subject to an expedited hearing procedure. 15 Persons making certain electioneering communications must 16 also report to the board, pursuant to new Code section 68A.820. 17 New Code section 68A.821 provides that the board shall 18 administer a voter information program, including establishment 19 of an advisory council, to provide voters with election-related 20 information, including a voter guide with candidate 21 biographical material, policy statements, voting records, and 22 whether the candidate funds the campaign with public or private 23 money. 24 New Code section 68A.825 provides the board with certain 25 specific enforcement powers and duties in relation to the 26 new subchapter, and new Code section 68A.827 provides for an 27 election cycle report by the board to the general assembly on 28 the public financing process. 29 New Code section 68A.826 creates a civil right of action for 30 citizens alleging that a candidate has violated the law. 31 Violations of the public financing process are subject 32 to aggravated misdemeanor penalties, pursuant to new Code 33 section 68A.829. An aggravated misdemeanor is punishable 34 by confinement for no more than two years and a fine of at 35 -28- LSB 1841YH (2) 87 aw/sc 28/ 29
H.F. 101 least $625 but not more than $6,250. New Code section 68A.828 1 provides for repayment of certain excess expenditures by the 2 candidate. 3 New Code sections 68A.610 and 422.12I create an income tax 4 checkoff for the voter-owned Iowa clean elections fund. This 5 checkoff allows a person to direct that $5 of that person’s 6 state income tax liability be paid over to the Iowa voter-owned 7 clean elections fund. 8 Code section 422.7, new subsection 59, is enacted to 9 provide up to a $200 exemption from income for purposes of the 10 individual income tax for contributions to the Iowa voter-owned 11 clean elections fund. 12 Code section 556.18 is amended to provide that $10 million 13 shall be annually transferred from the proceeds from the sale 14 by the state of lost or unclaimed property to the voter-owned 15 Iowa clean elections fund. 16 The sections of the bill enacting the income tax checkoff, 17 the exemption from the individual income tax, and the transfer 18 in Code section 556.18 take effect January 1, 2018. The 19 remainder of the bill takes effect November 4, 2020, which 20 is the day after the 2020 general election day, to allow the 21 public financing process to commence with a new campaign cycle. 22 New Code section 68A.804 provides guidelines for disposition of 23 money collected by candidates prior to the effective date of 24 the public financing process. 25 The bill may include a state mandate as defined in Code 26 section 25B.3. The bill makes inapplicable Code section 25B.2, 27 subsection 3, which would relieve a political subdivision from 28 complying with a state mandate if funding for the cost of 29 the state mandate is not provided or specified. Therefore, 30 political subdivisions are required to comply with any state 31 mandate included in the bill. 32 -29- LSB 1841YH (2) 87 aw/sc 29/ 29