House File 2511 - Introduced HOUSE FILE 2511 BY COMMITTEE ON STATE GOVERNMENT (SUCCESSOR TO HSB 620) A BILL FOR An Act relating to governmental ethics and campaign finance, 1 including the placement of campaign signs, the sale or lease 2 of real estate by regulatory agency officials and employees 3 to persons subject to the agency’s regulatory authority, and 4 the compensation of the executive director of the ethics and 5 campaign disclosure board, and making penalties applicable. 6 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 7 TLSB 5369HV (2) 88 jh/tm

H.F. 2511 Section 1. Section 68A.103, Code 2020, is amended to read 1 as follows: 2 68A.103 Applicability to federal candidates. 3 1. The requirements of this chapter relative to disclosure 4 of contributions shall apply to candidates and political 5 committees for federal office only in the event such candidates 6 are not subject to a federal law requiring the disclosure of 7 campaign financing. Any such federal law shall supersede the 8 provisions of this chapter . 9 2. The provisions of section 68A.406 shall apply to 10 candidates and political committees for federal office. 11 Sec. 2. Section 68A.406, Code 2020, is amended by adding the 12 following new subsection: 13 NEW SUBSECTION . 4. For the purposes of this section: 14 a. “Campaign sign” means a sign that expressly advocates in 15 favor of or against one or more clearly identified candidates 16 or ballot issues. 17 b. “Candidate” means an individual who has taken affirmative 18 action to seek the nomination or election to any federal, 19 state, county, city, or school office filled by election and 20 shall also include any judge standing for retention in a 21 judicial election. 22 Sec. 3. Section 68B.4, subsection 1, Code 2020, is amended 23 to read as follows: 24 1. An official or employee of any regulatory agency shall 25 not sell or lease, either directly or indirectly, any goods , 26 real estate, or services to individuals, associations, or 27 corporations subject to the regulatory authority of the agency 28 of which the person is an official or employee, except when the 29 official or employee has met all of the following conditions: 30 a. The consent of the regulatory agency for which the 31 person is an official or employee is obtained and the person is 32 not the official or employee with the authority to determine 33 whether agency consent is to be given under this section . 34 b. The duties or functions performed by the official 35 -1- LSB 5369HV (2) 88 jh/tm 1/ 5

H.F. 2511 or employee for the regulatory agency are not related to 1 the regulatory authority of the agency over the individual, 2 association, or corporation, or the selling or leasing of 3 goods , real estate, or services by the official or employee 4 to the individuals, associations, or corporations does not 5 affect the official’s or employee’s duties or functions at the 6 regulatory agency. 7 c. The selling or leasing of any goods , real estate, 8 or services by the official or employee to an individual, 9 association, or corporation does not include advocacy on 10 behalf of the individual, association, or corporation to 11 the regulatory agency in which the person is an official or 12 employee. 13 d. The selling or leasing of any goods , real estate, 14 or services by the official or employee to an individual, 15 association, or corporation does not cause the official or 16 employee to sell or lease goods , real estate, or services to 17 the regulatory agency on behalf of the individual, association, 18 or corporation. 19 Sec. 4. Section 68B.32, subsection 5, Code 2020, is amended 20 to read as follows: 21 5. The board shall employ a full-time executive director who 22 shall be the board’s chief administrative officer. The board 23 shall employ or contract for the employment of legal counsel 24 notwithstanding section 13.7 , and any other personnel as may 25 be necessary to carry out the duties of the board. The board’s 26 legal counsel shall be the chief legal officer of the board and 27 shall advise the board on all legal matters relating to the 28 administration of this chapter and chapter 68A . The state may 29 be represented by the board’s legal counsel in any civil action 30 regarding the enforcement of this chapter or chapter 68A , or at 31 the board’s request, the state may be represented by the office 32 of the attorney general. Notwithstanding section 8A.412 , all 33 of the board’s employees, except for the executive director and 34 legal counsel, shall be employed subject to the merit system 35 -2- LSB 5369HV (2) 88 jh/tm 2/ 5

H.F. 2511 provisions of chapter 8A, subchapter IV . The salary of the 1 executive director shall be fixed by the board, within the 2 range established by the general assembly. The salary of the 3 legal counsel shall be fixed by the board, within a salary 4 range established by the department of administrative services 5 for a position requiring similar qualifications and experience. 6 If the board’s executive director also serves as the board’s 7 legal counsel, the board may, in the board’s discretion, award 8 the executive director additional compensation which shall not 9 annually exceed fifty percent of the maximum annual salary for 10 the range established by the general assembly for the board’s 11 executive director position. 12 EXPLANATION 13 The inclusion of this explanation does not constitute agreement with 14 the explanation’s substance by the members of the general assembly. 15 This bill relates to governmental ethics and campaign 16 finance, including the placement of campaign signs, the 17 sale or lease of real estate by regulatory agency officials 18 and employees to persons subject to the agency’s regulatory 19 authority, and the compensation of the executive director of 20 the ethics and campaign disclosure board. 21 CAMPAIGN SIGNS. Code section 68A.406 regulates the 22 placement of campaign signs for candidates of state and local 23 office. The bill provides that the campaign sign regulations 24 also apply to candidates and political committees for federal 25 office, and defines “campaign sign” and “candidate”. A person 26 who violates this provision of the bill is subject to civil 27 penalties imposed by the Iowa ethics and campaign disclosure 28 board, including remedial action, a reprimand, and a civil 29 penalty up to $2,000. In addition, a person who willfully 30 violates a provision of Code chapter 68A is guilty of a 31 serious misdemeanor. A serious misdemeanor is punishable by 32 confinement for no more than one year and a fine of at least 33 $315 but not more than $1,875. 34 SALES AND LEASES BY PUBLIC EMPLOYEES. Under current 35 -3- LSB 5369HV (2) 88 jh/tm 3/ 5

H.F. 2511 law, officials and employees of state regulatory agencies 1 are prohibited from selling or leasing goods or services 2 to individuals, associations, or corporations subject to 3 the agency authority of which the person is an official or 4 employee. However, this prohibition does not apply if consent 5 for such sale or lease is obtained from the agency consistent 6 with rules adopted by the Iowa ethics and campaign disclosure 7 board; if the official’s or employee’s agency duties are not 8 related to the regulatory authority of the agency over the 9 individual, association, or corporation; if the selling or 10 leasing of the goods or services does not include advocacy on 11 behalf of the individual, association, or corporation to the 12 agency; and if the selling or leasing of the goods or services 13 does not cause the official or employee to sell or lease 14 goods or services to the agency on behalf of the individual, 15 association, or corporation. The bill extends this prohibition 16 and the exception to the sale or lease of real estate. 17 A person who knowingly and intentionally violates this 18 provision of the bill is guilty of a serious misdemeanor and 19 may be reprimanded, suspended, or dismissed from the person’s 20 position or otherwise sanctioned. A serious misdemeanor is 21 punishable by confinement for no more than one year and a fine 22 of at least $315 but not more than $1,875. 23 ETHICS AND CAMPAIGN DISCLOSURE BOARD EXECUTIVE DIRECTOR 24 COMPENSATION. Under current law, the ethics and campaign 25 disclosure board is required to establish the salary of the 26 board’s executive director within a range designated by the 27 general assembly. 28 The bill allows the board to award the board’s executive 29 director additional compensation which shall not annually 30 exceed 50 percent of the maximum annual salary for the range 31 established by the general assembly for the board’s executive 32 director position, if the board’s executive director also 33 serves as the board’s legal counsel. Currently, the general 34 assembly designates the board’s executive director position at 35 -4- LSB 5369HV (2) 88 jh/tm 4/ 5