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