SF 441 (LSB 2417XS (2) 91)

SENATE FILE 441

BY  WEINER, BENNETT, DONAHUE, WINCKLER, CELSI, STAED, TOWNSEND, and PETERSEN

A BILL FOR

An Act relating to the payment of dependent care expenses from campaign funds, and making penalties applicable.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  NEW SECTION.  68A.303A  Dependent care expenses.
   1.  In addition to the uses permitted under sections 68A.302 and 68A.303, a candidate or candidate’s committee may use campaign funds to pay for expenses related to the care of any dependent of the candidate if all of the following conditions are met:
   a.  The expense is incurred as a direct result of campaign activity or as a direct result of the official duties of the candidate’s office if the candidate wins election to the office sought.
   b.  The candidate would not have needed the dependent care but for the candidate’s candidacy for office or election to that office.
   c.  The payment to the dependent care provider is reasonable for the services rendered.
   d.  The dependent care provider is not the spouse or dependent child of the candidate.
   2.  A candidate using campaign funds for dependent care expenses shall keep a log detailing the date, campaign or official purpose, length of time of care, name of dependent care provider, and cost for each dependent care expense paid or owed by the campaign or candidate. Total dependent care expenses shall be included as a line-item expense in a report submitted pursuant to section 68A.402. A candidate’s log of dependent care expenses shall be provided to the board if requested during the course of an audit. The candidate’s committee shall preserve a dependent care log for five years following the submission of a report relating to the log, or for three years following the dissolution of the candidate’s committee.
   3.  For purposes of this section, “dependent” means the same as defined in the Internal Revenue Code.
EXPLANATION
The inclusion of this explanation does not constitute agreement with
the explanation’s substance by the members of the general assembly.
   This bill relates to the payment of dependent care expenses with campaign funds. The bill permits a candidate to pay for dependent care expenses using campaign funds if the expense is incurred as a direct result of a campaign activity or official duty if the candidate wins election, the candidate would not have needed the dependent care but for the candidate’s candidacy or election, the payment to the dependent care provider is reasonable, and the dependent care provider is not the spouse or dependent child of the candidate. The bill requires the candidate to keep logs relating to payment for any such services, which shall be provided to the Iowa ethics and campaign disclosure board upon request during the course of an audit. The bill requires the candidate’s committee to preserve a dependent care log for five years following the submission of a report relating to the log, or for three years following the dissolution of the committee.
   A person who violates a provision of Code chapter 68A is subject to civil penalties imposed by the Iowa ethics and campaign disclosure board, including remedial action, a reprimand, and a civil penalty up to $2,000. In addition, a person who willfully violates a provision of Code chapter 68A is guilty of a serious misdemeanor. A serious misdemeanor is punishable by confinement for no more than one year and a fine of at least $430 but not more than $2,560.