House File 2514 - Introduced HOUSE FILE 2514 BY JAMES A BILL FOR An Act relating to campaign finance, including expenditures, 1 attribution statements, and reports, and making penalties 2 applicable. 3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 4 TLSB 5683YH (1) 89 ss/jh
H.F. 2514 Section 1. Section 68A.102, subsection 10, paragraph a, 1 subparagraph (2), Code 2022, is amended to read as follows: 2 (2) The payment, by any person other than a candidate or 3 political committee who receives the service , of compensation 4 for the personal services of another person which are rendered 5 to a candidate or political committee for any such purpose. 6 Sec. 2. Section 68A.102, subsection 10, paragraph a, Code 7 2022, is amended by adding the following new subparagraph: 8 NEW SUBPARAGRAPH . (3) A coordinated expenditure if the 9 expenditure must be reported pursuant to subchapter IV. 10 Sec. 3. Section 68A.102, subsections 14 and 18, Code 2022, 11 are amended to read as follows: 12 14. a. “Express advocacy” or to “expressly advocate” means 13 communication that can be characterized according to at least 14 one of the following descriptions: 15 a. (1) The communication is political speech made in the 16 form of a contribution. 17 b. (2) In advocating the election or defeat of one or more 18 clearly identified candidates or the passage or defeat of one 19 or more clearly identified ballot issues, the communication 20 includes explicit words that unambiguously indicate that the 21 communication is recommending or supporting a particular 22 outcome in the election with regard to any clearly identified 23 candidate or ballot issue. 24 b. “Express advocacy” or “expressly advocate” does not mean 25 a communication that can be characterized according to one or 26 more of the following descriptions: 27 (1) The communication encourages individuals to register 28 to vote or to vote, provided that the communication does not 29 mention or depict a candidate or ballot issue. 30 (2) The communication does not support or oppose a candidate 31 or ballot issue. 32 (3) The communication is a bona fide news story, commentary, 33 blog, or editorial distributed through the facilities of any 34 broadcasting station, newspaper, magazine, internet site, or 35 -1- LSB 5683YH (1) 89 ss/jh 1/ 10
H.F. 2514 other periodical publication of general circulation. 1 (4) The communication is by a membership organization or 2 corporation to its members, stockholders, or employees. 3 (5) The board determines by rule that the communication is 4 not express advocacy. 5 18. “Political committee” means any of the following: 6 a. A committee, but not a candidate’s committee, that 7 accepts contributions in excess of one thousand two hundred 8 fifty dollars in the aggregate, makes expenditures in excess 9 of one thousand two hundred fifty dollars in the aggregate, or 10 incurs indebtedness in excess of one thousand two hundred fifty 11 dollars in the aggregate in any one calendar year to expressly 12 advocate the nomination, election, or defeat of a candidate 13 for public office, make an electioneering communication, or to 14 expressly advocate the passage or defeat of a ballot issue. 15 b. An association, lodge, society, cooperative, union, 16 fraternity, sorority, educational institution, civic 17 organization, labor organization, religious organization, or 18 professional organization that accepts contributions in excess 19 of one thousand two hundred fifty dollars in the aggregate, 20 makes expenditures in excess of one thousand two hundred fifty 21 dollars in the aggregate, or incurs indebtedness in excess of 22 one thousand two hundred fifty dollars in the aggregate in 23 any one calendar year to expressly advocate the nomination, 24 election, or defeat of a candidate for public office, make an 25 electioneering communication, or to expressly advocate the 26 passage or defeat of a ballot issue. 27 c. A person, other than an individual, that accepts 28 contributions in excess of one thousand two hundred fifty 29 dollars in the aggregate, makes expenditures in excess of 30 one thousand two hundred fifty dollars in the aggregate, or 31 incurs indebtedness in excess of one thousand two hundred fifty 32 dollars in the aggregate in any one calendar year to expressly 33 advocate that an individual should or should not seek election 34 to a public office prior to the individual becoming a candidate 35 -2- LSB 5683YH (1) 89 ss/jh 2/ 10
H.F. 2514 as defined in subsection 4 . 1 Sec. 4. Section 68A.102, Code 2022, is amended by adding the 2 following new subsections: 3 NEW SUBSECTION . 8A. “Communication” means any of the 4 following: 5 a. A paid advertisement broadcast over radio, television, 6 cable, or satellite. 7 b. The paid placement of content on the internet or other 8 electronic communication network. 9 c. A paid advertisement published in a newspaper or 10 periodical or on a billboard. 11 d. A mailing. 12 e. A printed material. 13 NEW SUBSECTION . 10A. “Coordinated expenditure” means 14 an expenditure made in cooperation with, in consultation 15 with, at the request of, or with the express prior consent 16 of a candidate or committee receiving the benefit of the 17 expenditure. 18 NEW SUBSECTION . 13A. a. “Electioneering communication” 19 means a paid communication that is publicly distributed by 20 radio, television, cable, satellite, internet site, newspaper, 21 periodical, billboard, mail, electronic mail, or any other 22 distribution of materials, that is made within sixty days of 23 the initiation of voting in an election that does not support 24 or oppose a candidate or ballot issue, that can be received 25 by more than one hundred persons, and that does any of the 26 following: 27 (1) Refers to one or more clearly identified candidates in 28 that election. 29 (2) Depicts the name, image, likeness, or voice of a clearly 30 identified candidate in that election. 31 (3) Refers to a political party, ballot issue, or a question 32 submitted to the voters in that election. 33 b. “Electioneering communication” does not include any of 34 the following: 35 -3- LSB 5683YH (1) 89 ss/jh 3/ 10
H.F. 2514 (1) A bona fide news story, commentary, blog, or editorial 1 distributed through the facilities of any broadcasting station, 2 newspaper, magazine, internet site, or other periodical 3 publication of general circulation. 4 (2) A communication by a membership organization or 5 corporation to its members, stockholders, or employees. 6 (3) A commercial communication that depicts a candidate’s 7 name, image, likeness, or voice only in the candidate’s 8 capacity as owner, operator, or employee of a business that 9 existed prior to the organization of a candidate’s committee by 10 the candidate pursuant to section 68A.202. 11 (4) A communication that constitutes a candidate debate or 12 forum or that solely promotes a candidate debate or forum and 13 is made by or on behalf of the person sponsoring the debate or 14 forum. 15 (5) A communication that the board determines by rule is not 16 an electioneering communication. 17 Sec. 5. Section 68A.402, subsection 9, Code 2022, is amended 18 to read as follows: 19 9. a. Permanent organizations. A permanent organization 20 temporarily engaging in activity described in section 68A.102, 21 subsection 18 , shall organize a political committee and shall 22 keep the funds relating to that political activity segregated 23 from its operating funds. The political committee shall file 24 reports on the appropriate due dates as required by this 25 section . 26 b. The reports filed under this subsection shall identify 27 the all of the following: 28 (1) The source of the original funds used for a contribution 29 made to a candidate or a committee organized under this 30 chapter . 31 (2) The aggregate amount of contributions made by each 32 person. 33 (3) Each loan received from any person during the reporting 34 period. 35 -4- LSB 5683YH (1) 89 ss/jh 4/ 10
H.F. 2514 (4) The amount and nature of debts and obligations owed to 1 the committee. 2 (5) Proceeds that total less than thirty-five dollars 3 per person from mass collections made at fund-raising events 4 sponsored by the committee. 5 (6) The total sum of contributions received by the committee 6 for a specified candidate or committee. 7 (7) The full name, mailing address, occupation, and 8 principal place of business, if any, of each person or 9 committee to whom an expenditure has been made during the 10 reporting period, including the amount, date, and purpose of 11 each expenditure and the total amount of expenditures to each 12 person or committee. 13 (8) The full name, mailing address, occupation, and 14 principal place of business, if any, of each person to whom an 15 expenditure for personal services, salaries, and reimbursement 16 of expenses has been made, including the amount, date, 17 and purpose of that expenditure, and the total amount of 18 expenditures made to each person. 19 (9) The total sum of expenditures made during the reporting 20 period. 21 (10) The full name, mailing address, occupation, and 22 principal place of business, if any, of any person to whom a 23 loan was made, and the full name, mailing address, occupation, 24 and principal place of business, if any, of any endorsers, and 25 the date and amount of each loan. 26 (11) The amount and nature of debts and obligations owed by 27 the committee. 28 (12) Other information as may be required by the board by 29 rule. 30 (13) For reports of expenditures made to a consultant, 31 advertising agency, polling firm, or other person that performs 32 services for the committee, the report shall be itemized 33 and described in sufficient detail to disclose the specific 34 services performed by the entity. 35 -5- LSB 5683YH (1) 89 ss/jh 5/ 10
H.F. 2514 c. When the permanent organization ceases to be involved 1 in the political activity, the permanent organization shall 2 dissolve the political committee. 3 d. As used in this subsection , “permanent organization” 4 means an organization that is continuing, stable, and enduring, 5 and was originally organized for purposes other than engaging 6 in election activities. 7 Sec. 6. Section 68A.402A, subsection 1, paragraphs f and g, 8 Code 2022, are amended to read as follows: 9 f. The name and mailing address of each person and committee 10 to whom disbursements , payments for personal services, 11 salaries, reimbursement for expenses, or loan repayments 12 have been made by the committee from contributions during 13 the reporting period and the amount, purpose, and date of 14 each disbursement except that disbursements of less than five 15 dollars may be shown as miscellaneous disbursements so long as 16 the aggregate miscellaneous disbursements to any one person 17 during a calendar year do not exceed one hundred dollars. 18 Reports of disbursements under this paragraph must be itemized 19 and sufficiently detailed to disclose the specific services 20 performed by the person to whom a disbursement was made. 21 g. Disbursements made to a consultant , advertising agency, 22 or polling firm and disbursements made by the consultant , 23 advertising agency, or polling firm during the reporting 24 period disclosing the name and address of the recipient, 25 amount, purpose, and date. Reports of disbursements under 26 this paragraph must be itemized and sufficiently detailed to 27 disclose the specific services performed by the entity to whom 28 a disbursement was made. 29 Sec. 7. Section 68A.402A, subsection 1, Code 2022, is 30 amended by adding the following new paragraph: 31 NEW PARAGRAPH . l. The total sum of disbursements made. 32 Sec. 8. NEW SECTION . 68A.404A Electioneering communications 33 —— reports. 34 1. A person making an electioneering communication shall 35 -6- LSB 5683YH (1) 89 ss/jh 6/ 10
H.F. 2514 file a report with the board, including a description of the 1 communication, how the communication was distributed, and 2 the amount of any expenditure made on the electioneering 3 communication, except that a person spending less than two 4 hundred fifty dollars on electioneering communications in a 5 taxable year shall not be required to file a report. 6 2. The board shall adopt rules for the form and schedule of 7 reports filed under this section. 8 Sec. 9. Section 68A.405, subsection 1, paragraphs b, c, d, 9 e, f, g, and h, Code 2022, are amended to read as follows: 10 b. (1) Except as set out in subsection 2 , published 11 material designed to expressly advocate the nomination, 12 election, or defeat of a candidate for public office or 13 the passage or defeat of a ballot issue and electioneering 14 communications shall include on the published material 15 or electioneering communication an attribution statement 16 disclosing who is responsible for the published material or 17 electioneering communication . 18 (2) The person who is responsible for the published material 19 or electioneering communication has the sole responsibility 20 and liability for the attribution statement required by this 21 section. 22 c. If the person paying for the published material or 23 electioneering communication is an individual, the words “paid 24 for by” and the name and address of the person shall appear on 25 the published material or electioneering communication . 26 d. If more than one individual is responsible, the words 27 “paid for by”, the names of the individuals, and either 28 the addresses of the individuals or a statement that the 29 addresses of the individuals are on file with the Iowa ethics 30 and campaign disclosure board shall appear on the published 31 material or electioneering communication . 32 e. If the person responsible is an organization, the words 33 “paid for by”, the name and address of the organization, and 34 the name of one officer of the organization shall appear on the 35 -7- LSB 5683YH (1) 89 ss/jh 7/ 10
H.F. 2514 published material or electioneering communication . 1 f. If the person responsible is a corporation, the words 2 “paid for by”, the name and address of the corporation, and the 3 name and title of the corporation’s chief executive officer 4 shall appear on the published material or electioneering 5 communication . 6 g. If the person responsible is a committee that has filed 7 a statement of organization pursuant to section 68A.201 , the 8 words “paid for by” and the name of the committee shall appear 9 on the published material or electioneering communication . 10 h. If the published material or electioneering communication 11 is the result of an independent expenditure subject to section 12 68A.404 , the published material or electioneering communication 13 shall include a statement that the published material or 14 electioneering communication was not authorized by any 15 candidate, candidate’s committee, or ballot issue committee. 16 Sec. 10. Section 68A.405, subsection 2, paragraph d, Code 17 2022, is amended to read as follows: 18 d. Any published material or electioneering communication 19 that is subject to federal regulations regarding an attribution 20 requirement. 21 Sec. 11. Section 68A.405, subsection 4, Code 2022, is 22 amended to read as follows: 23 4. The board shall adopt rules relating to the placing of an 24 attribution statement on published materials and electioneering 25 communication . 26 EXPLANATION 27 The inclusion of this explanation does not constitute agreement with 28 the explanation’s substance by the members of the general assembly. 29 This bill relates to campaign finance. The bill changes 30 the definition of “contribution” to include, with respect 31 to payments for services, payments made by any person other 32 than a candidate or committee who receives the service. The 33 bill adds coordinated expenditures, defined in the bill as a 34 communication made in coordination with a candidate, to the 35 -8- LSB 5683YH (1) 89 ss/jh 8/ 10
H.F. 2514 definition of “contribution” if the coordinated expenditure 1 is required to be reported to the Iowa ethics and campaign 2 disclosure board (board). The bill excludes from the 3 definition of “express advocacy” communications that encourage 4 individuals to register to vote or to vote; that do not 5 support or oppose a candidate or ballot issue; that is a news 6 story, commentary, blog, or editorial; that is by a membership 7 organization to its members, stockholders, or employees; or 8 that the board determines by rule is not express advocacy. 9 The bill lowers the minimum amount of money that an 10 organization must accept or expend before being considered 11 a political committee from $1,000 to $250. The bill adds a 12 definition for “communication” that includes paid broadcasts, 13 placements of internet content, printed advertisements, 14 mailings, and printed materials. The bill also defines 15 “electioneering communication” as a communication made within 16 60 days of the commencement of voting in an election that is 17 not express advocacy but which refers to one or more clearly 18 identified candidate; depicts the name, image, likeness, or 19 voice of a candidate; or refers to a political party, ballot 20 issue, or a question submitted to voters at that election. 21 “Electioneering communication” does not include a bona fide 22 news story, commentary, blog, or editorial; a communication 23 made by a membership organization to its members, stockholders, 24 or employees; a commercial communication that depicts a 25 candidate only in the candidate’s capacity as owner, operator, 26 or employee of a business; a candidate debate forum or a 27 promotion for a candidate debate forum; or a communication 28 that the board determines by rule is not an electioneering 29 communication. 30 The bill changes the content required in a report 31 filed by a permanent organization temporarily engaged in 32 political activity. Such reports must include aggregate 33 contributions made by each person who made a contribution to 34 the organization, each loan received by the organization, 35 -9- LSB 5683YH (1) 89 ss/jh 9/ 10
H.F. 2514 the amount and nature of debts and obligations owed to the 1 organization, proceeds that total less than $35 per person from 2 mass collections made at fund-raising events, the total sum of 3 contributions received for a particular candidate or committee, 4 personal information of each person to whom an expenditure was 5 made, personal information of each person who received a salary 6 or reimbursement of expenses from the organization, the total 7 sum of all expenditures made by the organization, personal 8 information of each person to whom a loan was made, debts and 9 obligations owed by the committee, and other information that 10 may be required by the board by rule. Reports of expenditures 11 for personal services in reports made by any entity must be 12 itemized and detail the specific services provided. The bill 13 also requires all reports submitted to the board to include the 14 total sum of disbursements made. 15 The bill requires a person making an electioneering 16 communication to file a report with the board pursuant to rules 17 of the board. Electioneering communications must also include 18 attribution statements. 19 By operation of law, a person who willfully violates a 20 provision of the bill is guilty of a serious misdemeanor. A 21 serious misdemeanor is punishable by confinement for no more 22 than one year and a fine of at least $430 but not more than 23 $2,560. 24 -10- LSB 5683YH (1) 89 ss/jh 10/ 10