SF 203 (LSB 1841XS (1) 87)

SENATE FILE 203

BY  BOLKCOM

A BILL FOR

An Act relating to campaign finance by establishing a voter-owned Iowa clean elections Act and fund, providing for funding from specified sources, including an income tax checkoff, providing an income tax exemption for contributions made to the fund, providing penalties, and including effective date provisions.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

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