Senate File 493 - Introduced SENATE FILE 493 BY COMMITTEE ON LOCAL GOVERNMENT (SUCCESSOR TO SSB 1042) A BILL FOR An Act prohibiting political subdivisions from using certain 1 moneys to hire lobbyists or pay instrumentalities, and 2 providing penalties. 3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 4 TLSB 2247SV (2) 91 th/jh

S.F. 493 Section 1. NEW SECTION . 68B.9 Use of tax revenue by 1 political subdivisions —— lobbying restrictions. 2 1. A political subdivision shall not use moneys received 3 from the imposition of a tax to do any of the following: 4 a. Employ or compensate a lobbyist. 5 b. Pay an instrumentality that employs or compensates a 6 lobbyist. 7 2. a. For purposes of this section, “instrumentality” means 8 an entity to which all of the following apply: 9 (1) The entity serves a governmental purpose or performs a 10 governmental function. 11 (2) The entity operates on behalf of one or more political 12 subdivisions. 13 (3) One or more political subdivisions have the powers and 14 interests of an owner with respect to the entity. 15 (4) Control and supervision of the entity is vested in 16 members of one or more political subdivisions. 17 b. “ Instrumentality” includes but is not limited to the 18 following entities: 19 (1) The Iowa league of cities. 20 (2) The Iowa state association of counties and any affiliate 21 of the Iowa state association of counties. 22 (3) The Iowa school board association. 23 c. “Instrumentality” does not include a state, county, 24 or city insurance group entity or an employee benefits group 25 entity. 26 Sec. 2. Section 68B.34, Code 2025, is amended to read as 27 follows: 28 68B.34 Additional penalty. 29 In addition to any penalty contained in any other provision 30 of law, a person who knowingly and intentionally violates a 31 provision of sections 68B.2A through 68B.8 68B.9 , sections 32 68B.22 through 68B.24 , or sections 68B.35 through 68B.38 33 is guilty of a serious misdemeanor and may be reprimanded, 34 suspended, or dismissed from the person’s position or otherwise 35 -1- LSB 2247SV (2) 91 th/jh 1/ 3

S.F. 493 sanctioned. 1 EXPLANATION 2 The inclusion of this explanation does not constitute agreement with 3 the explanation’s substance by the members of the general assembly. 4 This bill prohibits a political subdivision from using 5 moneys received from the imposition of a tax to employ or 6 compensate a lobbyist, or to pay an instrumentality that 7 employs or compensates a lobbyist. For the purposes of the 8 bill, “instrumentality” is defined and includes, among other 9 entities that meet certain qualifications, the Iowa league of 10 cities, the Iowa state association of counties and any of its 11 affiliates, and the Iowa school board association. 12 When used in Code chapter 68B (government ethics and 13 lobbying), “lobbyist” means an individual who, by acting 14 directly, receives compensation to encourage the passage, 15 defeat, approval, veto, or modification of legislation, a 16 rule, or an executive order by the members of the general 17 assembly, a state agency, or any statewide elected official; 18 is a designated representative of an organization which has as 19 one of its purposes the encouragement of the passage, defeat, 20 approval, veto, or modification of legislation, a rule, or an 21 executive order before the general assembly, a state agency, 22 or any statewide elected official; represents the position of 23 a federal, state, or local government agency, in which the 24 person serves or is employed as the designated representative, 25 for purposes of encouraging the passage, defeat, approval, 26 veto, or modification of legislation, a rule, or an executive 27 order by members of the general assembly, a state agency, or 28 any statewide elected official; or makes expenditures of more 29 than $1,000 in a year, other than to pay another lobbyist or 30 to communicate with only the members of the general assembly 31 who represent the district in which the individual resides, to 32 communicate in person with members of the general assembly, a 33 state agency, or any statewide elected official for purposes 34 of encouraging the passage, defeat, approval, veto, or 35 -2- LSB 2247SV (2) 91 th/jh 2/ 3

S.F. 493 modification of legislation, a rule, or an executive order. 1 A person who knowingly and intentionally violates the 2 bill is guilty of a serious misdemeanor and if the person 3 is a lobbyist, the person may be reprimanded, suspended, or 4 dismissed from the person’s position or otherwise sanctioned. 5 A serious misdemeanor is punishable by confinement for no more 6 than one year and a fine of at least $430 but not more than 7 $2,560. 8 -3- LSB 2247SV (2) 91 th/jh 3/ 3