H.F. 2377 Section 1. LEGISLATIVE FINDINGS —— INTENT. The general 1 assembly finds and declares all of the following: 2 1. The state has a compelling interest in protecting donors, 3 consumers, and the public from fraudulent fundraising and 4 solicitation schemes. 5 2. Knowingly false representations concerning objective 6 facts, such as the existence of data, the use of scientific 7 methodology, or the independence of a purportedly neutral 8 actor, are materially different than opinions or political 9 advocacy. 10 3. Fraudulent schemes that use fabricated polling data or 11 conceal campaign coordination undermine transparency and evade 12 campaign-finance disclosure requirements. 13 4. This Act regulates conduct and conspiracies, and any 14 regulation of speech is incidental to preventing fraud and 15 deception. 16 5. This Act is not intended to regulate the accuracy of 17 political viewpoints, predictions, or opinions, nor to penalize 18 good-faith methodological disagreements. 19 Sec. 2. NEW SECTION . 714.30 Engaging in a fraudulent 20 polling scheme. 21 1. A person commits the offense of engaging in a fraudulent 22 polling scheme when the person knowingly, intentionally, and 23 with the specific intent to obtain money or induce material 24 action, either directly or through a conspiracy with one or 25 more persons, does all of the following: 26 a. Makes or causes to be made a materially false 27 representation of an objective fact concerning: 28 (1) The existence of polling data or survey results. 29 (2) The collection of responses from any population. 30 (3) The use of a neutral, scientific, or methodological 31 polling process. 32 (4) The source, sponsorship, or authorship of purported 33 polling data. 34 (5) The independence or nonalignment of any person or entity 35 -1- LSB 6804HH (3) 91 as/js 1/ 4

H.F. 2377 presented as neutral or independent. 1 b. Disseminates or causes the dissemination of such 2 representations in connection with a political campaign. 3 c. Uses or relies upon such representations to do any of the 4 following: 5 (1) Solicit or obtain campaign contributions or donations. 6 (2) Raise funds for a candidate, committee, or political 7 cause. 8 (3) Induce any person to purchase goods or services, attend 9 an event, visit a business, or take other action of material 10 or economic consequence. 11 (4) Influence campaign-related expenditures. 12 d. Knows that the representation is false at the time the 13 representation is made. 14 2. A violation of this section includes any scheme in which 15 all of the following occur: 16 a. A candidate, campaign committee, or agent coordinates 17 with another person or entity. 18 b. The coordinated person or entity is publicly represented, 19 explicitly or implicitly, as independent, neutral, or 20 nonaligned. 21 c. Such false representation of independence is material to 22 fundraising, solicitation, or inducement of action. 23 3. A conspiracy to violate this section constitutes 24 a violation. Each conspirator is criminally liable for 25 foreseeable acts in furtherance of the scheme, and is jointly 26 and severally liable in any civil action. 27 4. A person who violates this section commits the following: 28 a. For a first offense, a serious misdemeanor. 29 b. For a second offense, an aggravated misdemeanor. 30 c. For a third or subsequent offense, a class “D” felony. 31 5. Funds obtained through the fraudulent scheme in 32 violation of this section are subject to forfeiture. 33 6. A private cause of action exists for any person who 34 contributed money, purchased goods or services, attended an 35 -2- LSB 6804HH (3) 91 as/js 2/ 4

H.F. 2377 event, or otherwise took material action. Available remedies 1 include actual damages, statutory damages per violation, treble 2 damages upon proof of knowing misconduct, reasonable attorney 3 fees and costs, and injunctive or declaratory relief. 4 7. This section does not apply to any of the following: 5 a. Opinions, predictions, advocacy, or commentary. 6 b. Disclosed internal campaign surveys. 7 c. Informal or nonscientific surveys clearly labeled as 8 such. 9 d. Good-faith methodological disagreements. 10 8. A clear and conspicuous disclosure that polling data 11 is informal, advocacy-based, hypothetical, or aligned with a 12 campaign constitutes a complete defense. 13 EXPLANATION 14 The inclusion of this explanation does not constitute agreement with 15 the explanation’s substance by the members of the general assembly. 16 This bill establishes the criminal offense of engaging in a 17 fraudulent polling scheme. 18 The bill provides that a person commits the offense of 19 engaging in a fraudulent polling scheme when the person 20 knowingly, intentionally, and with the specific intent to 21 obtain money or induce material action, either directly 22 or through a conspiracy with one or more persons, does all 23 of the following: makes or causes to be made a materially 24 false representation of an objective fact concerning certain 25 topics; disseminates or causes the dissemination of such 26 representations in connection with a political campaign; 27 uses or relies upon such representations; and knows that the 28 representation is false at the time the representation is made. 29 The bill provides that a violation of the bill includes 30 any scheme in which all of the following occur: a candidate, 31 campaign committee, or agent coordinates with another person 32 or entity; the coordinated person or entity is publicly 33 represented, explicitly or implicitly, as independent, neutral, 34 or nonaligned; and such false representation of independence is 35 -3- LSB 6804HH (3) 91 as/js 3/ 4

H.F. 2377 material to fundraising, solicitation, or inducement of action. 1 A conspiracy to violate the bill constitutes a violation. 2 Each conspirator is criminally liable for foreseeable acts in 3 furtherance of the scheme, and is jointly and severally liable 4 in any civil action. 5 The bill provides that a person who violates the bill commits 6 the following: for a first offense, a serious misdemeanor; for 7 a second offense, an aggravated misdemeanor; or for a third 8 or subsequent offense, a class “D” felony. Funds obtained 9 through the fraudulent scheme in violation of the bill are 10 subject to forfeiture. A serious misdemeanor is punishable by 11 confinement for no more than one year and a fine of at least 12 $430 but not more than $2,560. An aggravated misdemeanor is 13 punishable by confinement for no more than two years and a fine 14 of at least $855 but not more than $8,540. A class “D” felony 15 is punishable by confinement for no more than five years and a 16 fine of at least $1,025 but not more than $10,245. 17 The bill provides for a private cause of action for any 18 person who contributed money, purchased goods or services, 19 attended an event, or otherwise took material action. 20 Available remedies include actual damages, statutory damages 21 per violation, treble damages upon proof of knowing misconduct, 22 reasonable attorney fees and costs, and injunctive or 23 declaratory relief. 24 The bill does not apply to: opinions, predictions, 25 advocacy, or commentary; disclosed internal campaign surveys; 26 informal or nonscientific surveys clearly labeled as such; 27 or good-faith methodological disagreements. A clear and 28 conspicuous disclosure that polling data is informal, 29 advocacy-based, hypothetical, or aligned with a campaign 30 constitutes a complete defense. 31 -4- LSB 6804HH (3) 91 as/js 4/ 4