Senate Study Bill 1066 - Introduced SENATE FILE _____ BY (PROPOSED COMMITTEE ON WAYS AND MEANS BILL BY CHAIRPERSON FEENSTRA) A BILL FOR An Act relating to the Iowa election campaign fund individual 1 income tax checkoff by providing for the repeal of the 2 tax checkoff and the future repeal of the Iowa election 3 campaign fund, and including effective date and retroactive 4 applicability provisions. 5 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 6 TLSB 2430XC (5) 87 mm/sc/rj
S.F. _____ 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, 2016, 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, 2016, 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 26 a person for the checkoff is irrevocable. For tax years 27 beginning on or after January 1, 2016, any designation by a 28 taxpayer to contribute to the Iowa election campaign fund shall 29 be invalid, even if the income tax form provides space to make 30 such a designation. 31 Sec. 2. Section 422.12J, Code 2017, is amended to read as 32 follows: 33 422.12J Income tax checkoff for Iowa election campaign fund. 34 A For tax years beginning before January 1, 2016, a person 35 -1- LSB 2430XC (5) 87 mm/sc/rj 1/ 7
S.F. _____ who files an individual or a joint income tax return with 1 the department of revenue under section 422.13 may designate 2 a contribution to the Iowa election campaign fund authorized 3 pursuant to section 68A.601 . For tax years beginning on 4 or after January 1, 2016, any designation by a taxpayer to 5 contribute to the Iowa election campaign fund shall be invalid, 6 even if the income tax form provides space to make such a 7 designation. 8 Sec. 3. EFFECTIVE UPON ENACTMENT. This division of this 9 Act, being deemed of immediate importance, takes effect upon 10 enactment. 11 Sec. 4. RETROACTIVE APPLICABILITY. This division of this 12 Act applies retroactively to January 1, 2016, for tax years 13 beginning on or after that date. 14 DIVISION II 15 FUTURE REPEAL OF IOWA ELECTION CAMPAIGN FUND TAX CHECKOFF 16 Sec. 5. Section 68A.103, subsection 2, Code 2017, is amended 17 by striking the subsection. 18 Sec. 6. Section 97B.3, subsection 2, Code 2017, is amended 19 to read as follows: 20 2. The qualifications for appointment as the chief 21 executive officer shall include management-level pension 22 fund administration experience. The qualifications for 23 appointment as the chief executive officer shall also 24 include a demonstrated knowledge of all aspects of pension 25 fund administration, including financial management, 26 investment asset management, benefit design and delivery, 27 legal administration, and operations administration. The 28 chief executive officer shall not be selected on the basis 29 of political affiliation, and while employed as the chief 30 executive officer, shall not be a member of a political 31 committee, participate in a political campaign, or be a 32 candidate for a partisan elective office, and shall not 33 contribute to a political campaign fund, except that the chief 34 executive officer may designate on the checkoff portion of the 35 -2- LSB 2430XC (5) 87 mm/sc/rj 2/ 7
S.F. _____ state or federal income tax return , or both, a party or parties 1 to which a contribution is made pursuant to the checkoff. The 2 chief executive officer shall not hold any other office under 3 the laws of the United States or of this or any state and shall 4 devote full time to the duties of office. 5 Sec. 7. Section 422.12D, subsection 2, Code 2017, is amended 6 to read as follows: 7 2. The director of revenue shall draft the income tax form 8 to allow the designation of contributions to the foundation 9 fund on the tax return. The department, on or before January 10 31, shall transfer the total amount designated on the tax 11 form due in the preceding year to the foundation fund. 12 However, before a checkoff pursuant to this section shall be 13 permitted, all liabilities on the books of the department of 14 administrative services and accounts identified as owing under 15 section 8A.504 and the political contribution allowed under 16 section 68A.601 shall be satisfied. 17 Sec. 8. Section 422.12E, subsection 1, Code 2017, is amended 18 to read as follows: 19 1. For tax years beginning on or after January 1, 2019, 20 there shall be allowed no more than four income tax return 21 checkoffs on each income tax return. For tax years beginning 22 on or after January 1, 2017, when the same four income tax 23 return checkoffs have been provided on the income tax return 24 for two consecutive years, the two checkoffs for which the 25 least amount has been contributed, in the aggregate for the 26 first tax year and through March 15 of the second tax year, are 27 repealed. This section does not apply to the income tax return 28 checkoff provided in section 68A.601 . 29 Sec. 9. Section 422.12K, subsection 2, Code 2017, is amended 30 to read as follows: 31 2. The director of revenue shall draft the income tax form 32 to allow the designation of contributions to the child abuse 33 prevention program fund on the tax return. The department of 34 revenue, on or before January 31, shall transfer the total 35 -3- LSB 2430XC (5) 87 mm/sc/rj 3/ 7
S.F. _____ amount designated on the tax return forms due in the preceding 1 calendar year to the child abuse prevention program fund. 2 However, before a checkoff pursuant to this section shall be 3 permitted, all liabilities on the books of the department of 4 administrative services and accounts identified as owing under 5 section 8A.504 and the political contribution allowed under 6 section 68A.601 shall be satisfied. 7 Sec. 10. Section 422.12L, subsection 2, Code 2017, is 8 amended to read as follows: 9 2. The director of revenue shall draft the income tax form 10 to allow the designation of contributions to the veterans trust 11 fund and to the volunteer fire fighter preparedness fund as 12 one checkoff on the tax return. The department of revenue, 13 on or before January 31, shall transfer one-half of the total 14 amount designated on the tax return forms due in the preceding 15 calendar year to the veterans trust fund and the remaining 16 one-half to the volunteer fire fighter preparedness fund. 17 However, before a checkoff pursuant to this section shall be 18 permitted, all liabilities on the books of the department of 19 administrative services and accounts identified as owing under 20 section 8A.504 and the political contribution allowed under 21 section 68A.601 shall be satisfied. 22 Sec. 11. Section 456A.16, subsection 7, Code 2017, is 23 amended to read as follows: 24 7. The department shall adopt rules pursuant to chapter 17A 25 to implement this section . However, before a checkoff pursuant 26 to this section shall be permitted, all liabilities on the 27 books of the department of administrative services and accounts 28 identified as owing under section 8A.504 and the political 29 contribution allowed under section 68A.601 shall be satisfied. 30 Sec. 12. Section 474.10, Code 2017, is amended to read as 31 follows: 32 474.10 General counsel. 33 The board shall employ a competent attorney to serve as its 34 general counsel, and assistants to the general counsel as it 35 -4- LSB 2430XC (5) 87 mm/sc/rj 4/ 7
S.F. _____ finds necessary for the full and efficient discharge of its 1 duties. The general counsel is the attorney for, and legal 2 advisor of, the board and is exempt from the merit system 3 provisions of chapter 8A, subchapter IV . Assistants to the 4 general counsel are subject to the merit system provisions of 5 chapter 8A, subchapter IV . The general counsel or an assistant 6 to the general counsel shall provide the necessary legal advice 7 to the board in all matters and represent the board in all 8 actions instituted in a state or federal court challenging 9 the validity of a rule or order of the board. The existence 10 of a fact which disqualifies a person from election or from 11 acting as a utilities board member disqualifies the person from 12 employment as general counsel or assistant general counsel. 13 The general counsel shall devote full time to the duties of the 14 office. During employment the counsel shall not be a member of 15 a political committee, contribute to a political campaign fund 16 other than through the income tax checkoff for contributions to 17 the Iowa election campaign fund and the presidential election 18 campaign fund, participate in a political campaign, or be a 19 candidate for a political office. 20 Sec. 13. Section 475A.1, subsection 4, Code 2017, is amended 21 to read as follows: 22 4. Political activity prohibited. The consumer advocate 23 shall devote the advocate’s entire time to the duties of the 24 office ; and during . During the advocate’s term of office the 25 advocate shall not be a member of a political committee or 26 contribute to a political campaign fund other than through the 27 income tax checkoff for contributions to the Iowa election 28 campaign fund and the presidential election campaign fund 29 or take part in political campaigns or be a candidate for a 30 political office. 31 Sec. 14. Section 904.107, Code 2017, is amended to read as 32 follows: 33 904.107 Director —— appointment and qualifications. 34 The chief administrative officer for the department is the 35 -5- LSB 2430XC (5) 87 mm/sc/rj 5/ 7
S.F. _____ director. The director shall be appointed by the governor 1 subject to confirmation by the senate and shall serve at the 2 pleasure of the governor. The director shall be qualified 3 in reformatory and prison management, knowledgeable in 4 community-based corrections, and shall possess administrative 5 ability. The director shall also have experience in the field 6 of criminology and discipline and in the supervision of inmates 7 in corrective penal institutions. The director shall not be 8 selected on the basis of political affiliation, and while 9 employed as the director, shall not be a member of a political 10 committee, participate in a political campaign, be a candidate 11 for a partisan elective office, and shall not contribute to a 12 political campaign fund, except that the director may designate 13 on the checkoff portion of the state or federal income tax 14 return , or both, a party or parties to which a contribution is 15 made pursuant to the checkoff. The director shall not hold any 16 other office under the laws of the United States or of this or 17 any state or hold any position for profit and shall devote full 18 time to the duties of office. 19 Sec. 15. REPEAL. Sections 68A.601, 68A.602, 68A.603, 20 68A.604, 68A.605, 68A.606, 68A.607, 68A.608, 68A.609, and 21 422.12J, Code 2017, are repealed. 22 Sec. 16. EFFECTIVE DATE. This division of this Act takes 23 effect July 1, 2018. 24 EXPLANATION 25 The inclusion of this explanation does not constitute agreement with 26 the explanation’s substance by the members of the general assembly. 27 This bill relates to the Iowa election campaign income tax 28 checkoff and the Iowa election campaign fund. 29 Under current law, the Iowa election campaign income tax 30 checkoff allows individuals to designate on their income tax 31 return up to $1.50 of their state tax liability to the Iowa 32 election campaign fund. The checkoff is not subject to the 33 provisions of Code section 422.12E. 34 Moneys in the Iowa election campaign fund, consisting of 35 -6- LSB 2430XC (5) 87 mm/sc/rj 6/ 7
S.F. _____ a separate fund for each political party, are disbursed to 1 candidates for partisan public office at the request of the 2 candidate and at the discretion of the state central committee 3 of each political party. The Iowa ethics and campaign 4 disclosure board is responsible for administering the Iowa 5 election campaign fund. Any moneys not used by the political 6 parties by the end of a general election year revert to the 7 general fund of the state. 8 Division I of the bill restricts the Iowa election 9 campaign income tax checkoff to tax years beginning before 10 January 1, 2016. The checkoff will not be available on the 11 individual income tax return for tax year 2016, nor any tax 12 year thereafter. The bill provides that any designation by a 13 taxpayer to contribute to the Iowa election campaign fund for 14 tax year 2016 or later is invalid, even if the income tax form 15 provides space to make such a designation. 16 Division I takes effect upon enactment and applies 17 retroactively to January 1, 2016, for tax years beginning on 18 or after that date. 19 Division II of the bill provides that the Iowa election 20 campaign income tax checkoff and the Iowa election campaign 21 fund are repealed effective July 1, 2018. 22 -7- LSB 2430XC (5) 87 mm/sc/rj 7/ 7