H.F. 6 DIVISION I 1 IOWA ELECTION CAMPAIGN FUND TAX CHECKOFF 2 Section 1. Section 68A.601, Code 2017, is amended to read 3 as follows: 4 68A.601 Checkoff —— income tax. 5 A For tax years beginning before January 1, 2017, 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, 2017, 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 2017, 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, 2017, 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 1249YH (5) 87 mm/sc 1/ 7

H.F. 6 DIVISION II 1 FUTURE REPEAL OF IOWA ELECTION CAMPAIGN FUND TAX CHECKOFF 2 Sec. 3. Section 68A.103, subsection 2, Code 2017, is amended 3 by striking the subsection. 4 Sec. 4. Section 97B.3, subsection 2, Code 2017, 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 2017, 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 1249YH (5) 87 mm/sc 2/ 7

H.F. 6 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 2017, is amended 4 to read as follows: 5 1. For tax years beginning on or after January 1, 2019, 6 there shall be allowed no more than four income tax return 7 checkoffs on each income tax return. For tax years beginning 8 on or after January 1, 2017, when the same four income tax 9 return checkoffs have been provided on the income tax return 10 for two consecutive years, the two checkoffs for which the 11 least amount has been contributed, in the aggregate for the 12 first tax year and through March 15 of the second tax year, are 13 repealed. This section does not apply to the income tax return 14 checkoff provided in section 68A.601 . 15 Sec. 7. Section 422.12K, subsection 2, Code 2017, is amended 16 to read as follows: 17 2. The director of revenue shall draft the income tax form 18 to allow the designation of contributions to the child abuse 19 prevention program fund on the tax return. The department of 20 revenue, on or before January 31, shall transfer the total 21 amount designated on the tax return forms due in the preceding 22 calendar year to the child abuse prevention program fund. 23 However, before a checkoff pursuant to this section shall be 24 permitted, all liabilities on the books of the department of 25 administrative services and accounts identified as owing under 26 section 8A.504 and the political contribution allowed under 27 section 68A.601 shall be satisfied. 28 Sec. 8. Section 422.12L, subsection 2, Code 2017, is amended 29 to read as follows: 30 2. The director of revenue shall draft the income tax form 31 to allow the designation of contributions to the veterans trust 32 fund and to the volunteer fire fighter preparedness fund as 33 one checkoff on the tax return. The department of revenue, 34 on or before January 31, shall transfer one-half of the total 35 -3- LSB 1249YH (5) 87 mm/sc 3/ 7

H.F. 6 amount designated on the tax return forms due in the preceding 1 calendar year to the veterans trust fund and the remaining 2 one-half to the volunteer fire fighter preparedness fund. 3 However, before a checkoff pursuant to this section shall be 4 permitted, all liabilities on the books of the department of 5 administrative services and accounts identified as owing under 6 section 8A.504 and the political contribution allowed under 7 section 68A.601 shall be satisfied. 8 Sec. 9. Section 456A.16, subsection 7, Code 2017, is amended 9 to read as follows: 10 7. The department shall adopt rules pursuant to chapter 17A 11 to implement this section . However, before a checkoff pursuant 12 to this section shall be permitted, all liabilities on the 13 books of the department of administrative services and accounts 14 identified as owing under section 8A.504 and the political 15 contribution allowed under section 68A.601 shall be satisfied. 16 Sec. 10. Section 474.10, Code 2017, is amended to read as 17 follows: 18 474.10 General counsel. 19 The board shall employ a competent attorney to serve as its 20 general counsel, and assistants to the general counsel as it 21 finds necessary for the full and efficient discharge of its 22 duties. The general counsel is the attorney for, and legal 23 advisor of, the board and is exempt from the merit system 24 provisions of chapter 8A, subchapter IV . Assistants to the 25 general counsel are subject to the merit system provisions of 26 chapter 8A, subchapter IV . The general counsel or an assistant 27 to the general counsel shall provide the necessary legal advice 28 to the board in all matters and represent the board in all 29 actions instituted in a state or federal court challenging 30 the validity of a rule or order of the board. The existence 31 of a fact which disqualifies a person from election or from 32 acting as a utilities board member disqualifies the person from 33 employment as general counsel or assistant general counsel. 34 The general counsel shall devote full time to the duties of the 35 -4- LSB 1249YH (5) 87 mm/sc 4/ 7

H.F. 6 office. During employment the counsel shall not be a member of 1 a political committee, contribute to a political campaign fund 2 other than through the income tax checkoff for contributions to 3 the Iowa election campaign fund and the presidential election 4 campaign fund, participate in a political campaign, or be a 5 candidate for a political office. 6 Sec. 11. Section 475A.1, subsection 4, Code 2017, is amended 7 to read as follows: 8 4. Political activity prohibited. The consumer advocate 9 shall devote the advocate’s entire time to the duties of the 10 office ; and during . During the advocate’s term of office the 11 advocate shall not be a member of a political committee or 12 contribute to a political campaign fund other than through the 13 income tax checkoff for contributions to the Iowa election 14 campaign fund and the presidential election campaign fund 15 or take part in political campaigns or be a candidate for a 16 political office. 17 Sec. 12. Section 904.107, Code 2017, is amended to read as 18 follows: 19 904.107 Director —— appointment and qualifications. 20 The chief administrative officer for the department is the 21 director. The director shall be appointed by the governor 22 subject to confirmation by the senate and shall serve at the 23 pleasure of the governor. The director shall be qualified 24 in reformatory and prison management, knowledgeable in 25 community-based corrections, and shall possess administrative 26 ability. The director shall also have experience in the field 27 of criminology and discipline and in the supervision of inmates 28 in corrective penal institutions. The director shall not be 29 selected on the basis of political affiliation, and while 30 employed as the director, shall not be a member of a political 31 committee, participate in a political campaign, be a candidate 32 for a partisan elective office, and shall not contribute to a 33 political campaign fund, except that the director may designate 34 on the checkoff portion of the state or federal income tax 35 -5- LSB 1249YH (5) 87 mm/sc 5/ 7

H.F. 6 return , or both, a party or parties to which a contribution is 1 made pursuant to the checkoff. The director shall not hold any 2 other office under the laws of the United States or of this or 3 any state or hold any position for profit and shall devote full 4 time to the duties of office. 5 Sec. 13. REPEAL. Sections 68A.601, 68A.602, 68A.603, 6 68A.604, 68A.605, 68A.606, 68A.607, 68A.608, 68A.609, and 7 422.12J, Code 2017, are repealed. 8 Sec. 14. EFFECTIVE DATE. This division of this Act takes 9 effect July 1, 2018. 10 EXPLANATION 11 The inclusion of this explanation does not constitute agreement with 12 the explanation’s substance by the members of the general assembly. 13 This bill relates to the Iowa election campaign income tax 14 checkoff and the Iowa election campaign fund. 15 Under current law, the Iowa election campaign income tax 16 checkoff allows individuals to designate on their income tax 17 return up to $1.50 of their state tax liability to the Iowa 18 election campaign fund. The checkoff is not subject to the 19 provisions of Code section 422.12E. 20 Moneys in the Iowa election campaign fund, consisting of 21 a separate fund for each political party, are disbursed to 22 candidates for partisan public office at the request of the 23 candidate and at the discretion of the state central committee 24 of each political party. The Iowa ethics and campaign 25 disclosure board is responsible for administering the Iowa 26 election campaign fund. Any moneys not used by the political 27 parties by the end of a general election year revert to the 28 general fund of the state. 29 Division I of the bill restricts the Iowa election campaign 30 income tax checkoff to tax years beginning before January 1, 31 2017. The checkoff will not be available on the individual 32 income tax return for tax year 2017, nor any tax year 33 thereafter. 34 Division II of the bill provides that the Iowa election 35 -6- LSB 1249YH (5) 87 mm/sc 6/ 7