House File 638 - Introduced HOUSE FILE 638 BY COMMITTEE ON STATE GOVERNMENT (SUCCESSOR TO HSB 210) A BILL FOR An Act relating to matters before the Iowa ethics and campaign 1 disclosure board, including campaign finance filings, 2 attribution statements, authorized gifts, and delinquent 3 payment penalties. 4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 5 TLSB 2389HV (1) 90 th/jh
H.F. 638 Section 1. Section 68A.201, subsection 2, paragraphs a and 1 b, Code 2023, are amended to read as follows: 2 a. The name, purpose, mailing address, electronic mail 3 address, and telephone number of the committee. The committee 4 name shall not duplicate the name of another committee 5 organized under this section . For candidate’s committees 6 filing initial statements of organization on or after July 7 1, 1995, the candidate’s name shall be contained within the 8 committee name. 9 b. The name, mailing address, electronic mail address, and 10 position of the committee officers. 11 Sec. 2. Section 68A.201A, subsection 6, Code 2023, is 12 amended to read as follows: 13 6. The verified statement shall be filed by 4:30 in an 14 electronic format no later than 11:59 p.m. of the day the 15 filing is due. 16 Sec. 3. Section 68A.401, subsection 1, paragraph a, Code 17 2023, is amended to read as follows: 18 a. A state statutory political committee, a county statutory 19 political committee, a political committee, and a candidate’s 20 committee shall file all statements and reports in an 21 electronic format by 4:30 no later than 11:59 p.m. of the day 22 the filing is due and according to rules adopted by the board. 23 Sec. 4. Section 68A.405, subsection 1, paragraph a, 24 subparagraph (3), Code 2023, is amended to read as follows: 25 (3) “Published material” means any newspaper, magazine, 26 shopper, outdoor advertising facility, poster, direct mailing, 27 brochure, internet site, campaign sign, or any other form of 28 printed or electronic general public political advertising. 29 “Published material” includes radio, television, video, or 30 motion picture internet advertising. 31 Sec. 5. Section 68A.405, subsection 1, paragraph b, 32 subparagraph (1), Code 2023, is amended to read as follows: 33 (1) Except as set out in subsection 2 , published material 34 designed to expressly advocate the nomination, election, 35 -1- LSB 2389HV (1) 90 th/jh 1/ 9
H.F. 638 or defeat of a candidate for public office or the passage 1 or defeat of a ballot issue shall include on the published 2 material an a clear and conspicuous attribution statement 3 disclosing who is responsible for the published material. 4 Sec. 6. Section 68A.405, subsection 3, Code 2023, is amended 5 to read as follows: 6 3. For television , or video , or motion picture advertising, 7 the attribution statement shall be displayed on the screen 8 in a clearly readable manner for at least four seconds. For 9 radio advertising, the attribution statement shall be read in a 10 clearly understandable manner. 11 Sec. 7. Section 68B.22, subsection 4, paragraph j, Code 12 2023, is amended to read as follows: 13 j. Nonmonetary items with a value of three ten dollars or 14 less that are received from any one donor during one calendar 15 day. The allowable value of nonmonetary items shall be 16 annually adjusted to reflect a change in value due to inflation 17 and shall not include the sales tax associated with such items. 18 Sec. 8. Section 68B.22, subsection 8, Code 2023, is amended 19 to read as follows: 20 8. Except as otherwise provided in subsection 4 , an 21 organization or association which has as one of its purposes 22 the encouragement of the passage, defeat, introduction, 23 or modification of legislation shall not give and a member 24 of the general assembly shall not receive food, beverages, 25 registration, or scheduled entertainment with a per person 26 value in excess of three ten dollars. The allowable per 27 person value of food, beverages, registration, or scheduled 28 entertainment shall be annually adjusted to reflect a change 29 in value due to inflation and shall not include the sales tax 30 associated with such costs. 31 Sec. 9. Section 68B.32, subsections 3 and 5, Code 2023, are 32 amended to read as follows: 33 3. The board shall annually elect one member to serve as 34 the chairperson of the board and one member to serve as vice 35 -2- LSB 2389HV (1) 90 th/jh 2/ 9
H.F. 638 chairperson. The vice chairperson shall act as the chairperson 1 in the absence or disability of the chairperson or in the 2 event of a vacancy in that office. The chairperson and vice 3 chairperson shall not be members of the same political party. 4 5. The board shall employ a full-time executive director who 5 shall be the board’s chief administrative officer. The board 6 shall employ or contract for the employment of legal counsel 7 notwithstanding section 13.7 , and any other personnel as may 8 be necessary to carry out the duties of the board. The board’s 9 legal counsel shall be the chief legal officer of the board and 10 shall advise the board on all legal matters relating to the 11 administration of this chapter and chapter 68A . The state may 12 be represented by the board’s legal counsel in any civil action 13 regarding the enforcement of this chapter or chapter 68A , or at 14 the board’s request, the state may be represented by the office 15 of the attorney general. Notwithstanding section 8A.412 , all 16 of the board’s employees, except for the executive director and 17 legal counsel, shall be employed subject to the merit system 18 provisions of chapter 8A, subchapter IV . The salary of the 19 executive director shall be fixed by the board, within the 20 range established by the general assembly. The salary of the 21 legal counsel shall be fixed by the board, within a salary 22 range established by the department of administrative services 23 for a position requiring similar qualifications and experience. 24 If the executive director also serves as the board’s legal 25 counsel, the board may award the executive director additional 26 compensation which shall not annually exceed fifty percent of 27 the maximum annual salary for the range established by the 28 general assembly for the board’s executive director position. 29 Sec. 10. Section 68B.32A, Code 2023, is amended by adding 30 the following new subsection: 31 NEW SUBSECTION . 20. Beginning January 1, 2024, and every 32 January 1 thereafter, calculate and record any change in value 33 due to inflation using the annual percentage change in the 34 United States department of labor, bureau of labor statistics, 35 -3- LSB 2389HV (1) 90 th/jh 3/ 9
H.F. 638 consumer price index for all urban consumers for the midwest 1 region, all items, or its successor index, as provided under 2 section 68B.22, subsection 4, paragraph “j” , and section 3 68B.22, subsection 8. 4 Sec. 11. NEW SECTION . 68B.32E Delinquent penalties —— 5 enforcement. 6 1. A civil penalty assessed by the board under section 7 68B.32D, subsection 1, paragraph “h” , shall be paid no later 8 than thirty days after the order is issued. A civil penalty is 9 delinquent if the full amount of the civil penalty has not been 10 timely paid. 11 2. a. In lieu of paying the full amount of the civil 12 penalty within thirty days, a person may enter into an 13 installment payment plan. A payment plan must be agreed to 14 in writing and signed by the board’s executive director and 15 the person owing the civil penalty. The payment plan must 16 include a payment schedule with the payment dates described. 17 The payment plan must be established no later than thirty days 18 after the issuance of the order requiring the person to pay a 19 civil penalty, as provided under section 68B.32D, subsection 20 1, paragraph “h” . 21 b. If a payment plan is established, the civil penalty is 22 delinquent if an installment payment is not paid within thirty 23 days of the payment date provided in the payment plan. 24 3. A civil penalty delinquent for sixty days or longer 25 on or after July 1, 2023, shall accrue interest at a rate of 26 ten percent per annum, compounded monthly, beginning on the 27 later of July 1, 2023, and the date the civil penalty becomes 28 delinquent. The board may waive any accrued interest. 29 4. If a civil penalty remains delinquent for thirty days or 30 longer, the board shall send final notice to the person owing 31 the civil penalty. Such notice shall be sent via restricted 32 certified mail, and must include notice of the applicable 33 action provided in subsection 5 or 6. 34 5. Notwithstanding sections 321.210, 321.210A, and 35 -4- LSB 2389HV (1) 90 th/jh 4/ 9
H.F. 638 321.210B, if a civil penalty owed by a person who was issued a 1 driver’s license in this state is delinquent under subsection 1 2 or 2, and if the person owes two hundred fifty dollars or more, 3 the person’s driver’s license shall be suspended as follows: 4 a. The board shall issue an order to suspend the person’s 5 driver’s license to the department of transportation thirty 6 days after the person received a final notice in accordance 7 with subsection 4. 8 b. The department of transportation shall suspend the 9 person’s driver’s license within ten business days of receiving 10 the board’s order and shall send notice of the suspension to 11 the person in accordance with section 321.210E and provide 12 confirmation to the board when the person’s driver’s license 13 is suspended. 14 c. If the civil penalty owed by the person is no 15 longer delinquent, the board shall order the department of 16 transportation to reinstate the person’s driver’s license. The 17 department of transportation shall send notice to the person 18 whose license is reinstated and provide written confirmation to 19 the board when the license is reinstated. 20 6. If a civil penalty owed by a person who was not issued a 21 driver’s license in this state is delinquent under subsection 1 22 or 2, and if the person owes two hundred fifty dollars or more, 23 the board shall revoke any authority granted by the board for 24 the person to operate a candidate’s committee and a political 25 committee in this state until the person’s debt is no longer 26 delinquent. 27 7. Any penalty shall be stayed if an appeal is pending for 28 the underlying matter for which the person was issued a civil 29 penalty. For the duration of the stay, the penalty shall not 30 be deemed delinquent and shall not accrue interest. 31 8. The board may waive collection of a penalty owed in 32 circumstances where collection is impracticable. 33 9. This section does not prohibit the board from taking 34 alternative enforcement actions permitted by this chapter or 35 -5- LSB 2389HV (1) 90 th/jh 5/ 9
H.F. 638 chapter 17A. 1 Sec. 12. NEW SECTION . 321.210E Suspension for delinquent 2 administrative fines. 3 Upon receipt of an order from the Iowa ethics and campaign 4 disclosure board, the department shall suspend the driver’s 5 license of a person who has a delinquent civil penalty under 6 section 68B.32E and who received notice from the board required 7 under section 68B.32E, subsection 4. The department shall 8 send notice of the suspension to the person whose license is 9 suspended and shall send confirmation of the license suspension 10 to the Iowa ethics and campaign disclosure board. 11 EXPLANATION 12 The inclusion of this explanation does not constitute agreement with 13 the explanation’s substance by the members of the general assembly. 14 This bill relates to matters before the Iowa ethics and 15 campaign disclosure board (board). 16 The bill requires a political committee and a candidate’s 17 committee to provide an electronic mail address along with the 18 name, purpose, mailing address, and telephone number of the 19 committee when the committee files a statement of organization 20 with the board. When a committee or organization is not 21 organized under Code section 68A.201, such committee officers 22 are also required to provide an electronic mail address when 23 filing full disclosure reports of all financial activities with 24 the federal election commission or another state’s disclosure 25 commission. 26 The bill extends the deadline for required filings to be 27 submitted electronically to the board from 4:30 p.m. to 11:59 28 p.m. on the day the filings are due. By operation of law, 29 in computing time, the first day is excluded and the last 30 included, unless the last falls on Sunday or holiday, in which 31 case the time prescribed is extended so as to include the 32 whole of the following Monday, or day after the holiday, as 33 applicable. 34 The bill adds radio and internet advertising to the 35 -6- LSB 2389HV (1) 90 th/jh 6/ 9
H.F. 638 definition of “published material” as used in Code chapter 1 68A, and strikes motion picture advertising from the 2 definition. “Published material”, including radio and internet 3 advertising under the bill, that is designed to expressly 4 advocate the nomination, election, or defeat of a candidate 5 for public office or the passage or defeat of a ballot issue 6 is required to include an attribution statement disclosing 7 who is responsible for the material. The bill requires the 8 attribution statement to be clear and conspicuous. For radio 9 advertising, the attribution statement must be read in a 10 clearly understandable manner. 11 Under current law, a member of the general assembly, a public 12 official, public employee, or candidate, or that person’s 13 immediate family member is prohibited from, directly or 14 indirectly, accepting or receiving certain gifts or series of 15 gifts from restricted donors. 16 Code section 68B.22 provides a number of exceptions to the 17 general gift giving and receiving prohibitions including but 18 not limited to authorizing public officials, public employees, 19 candidates, and members of the immediate family of such persons 20 to accept nonmonetary items with a value of $3 or less from 21 any one donor during one calendar day. The Code section also 22 authorizes a member of the general assembly to receive food, 23 beverages, registration, or scheduled entertainment with a per 24 person value of up to $3 from an organization or association 25 which has as one of its purposes the encouragement of the 26 passage, defeat, introduction, or modification of legislation. 27 The bill increases the gift value to $10 and requires the 28 value of those gifts to be adjusted to reflect a change in 29 value due to inflation based on the annual percentage change 30 in the United States department of labor, bureau of labor 31 statistics, consumer price index for all urban consumers for 32 the midwest region, all items, or its successor index. The 33 Iowa ethics and campaign disclosure board must calculate and 34 record the allowable monetary value changed due to inflation on 35 -7- LSB 2389HV (1) 90 th/jh 7/ 9
H.F. 638 January 1, 2024, and every January 1 thereafter. 1 Current law requires the board to annually elect one member 2 to serve as the chairperson of the board and one member to 3 serve as vice chairperson. The bill prohibits the chairperson 4 and vice chairperson from being members of the same political 5 party. 6 Under current law, the board must employ a full-time 7 executive director who is the board’s chief administrative 8 officer. The board must also employ or contract for the 9 employment of legal counsel and any other personnel as may 10 be necessary to carry out the duties of the board. The 11 board’s legal counsel is the chief legal officer of the 12 board and advises the board on all legal matters relating to 13 the administration of Code chapters 68A and 68B. The bill 14 authorizes the board to award the executive director, if that 15 person also serves as the board’s legal counsel, additional 16 compensation. The additional compensation must not annually 17 exceed 50 percent of the maximum annual salary for the range 18 established by the general assembly for the board’s executive 19 director position. 20 The bill provides enforcement provisions related to 21 delinquent civil penalties assessed by the board under Code 22 section 68B.32, subsection 1, paragraph “h”. The bill requires 23 civil penalties to be paid within 30 days of the board’s order 24 for a penalty unless a payment plan is established. Under the 25 bill, a civil penalty that is delinquent for 60 days or longer 26 on or after July 1, 2023, shall accrue interest at a rate of 27 10 percent per annum, compounded monthly, beginning on July 1, 28 2023, or the date the penalty becomes delinquent. 29 The bill authorizes the board to send an order to the 30 department of transportation (DOT) to suspend the driver’s 31 license of a person who was issued a license in Iowa, if the 32 person has a delinquent penalty in excess of $250 and received 33 notice as provided in the bill. The bill requires the DOT 34 to suspend the person’s driver’s license within 10 business 35 -8- LSB 2389HV (1) 90 th/jh 8/ 9
H.F. 638 days of receiving the board’s order, and then send certain 1 notices. If a delinquent civil penalty of more than $250 is 2 owed by a person who was not issued a driver’s license in Iowa, 3 the board is required to revoke any authority granted by the 4 board for the person to operate a candidate’s committee and 5 a political committee in Iowa until the person’s debt is no 6 longer delinquent. 7 The bill provides for penalties to be waived and stayed under 8 certain circumstances. 9 -9- LSB 2389HV (1) 90 th/jh 9/ 9