SF 493 (LSB 2247SV (2) 91)

SENATE FILE 493

BY  COMMITTEE ON LOCAL GOVERNMENT

(SUCCESSOR TO SSB 1042)

A BILL FOR

An Act prohibiting political subdivisions from using certain moneys to hire lobbyists or pay instrumentalities, and providing penalties.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  NEW SECTION.  68B.9  Use of tax revenue by political subdivisions —— lobbying restrictions.
   1.  A political subdivision shall not use moneys received from the imposition of a tax to do any of the following:
   a.  Employ or compensate a lobbyist.
   b.  Pay an instrumentality that employs or compensates a lobbyist.
   2.  a.  For purposes of this section, “instrumentality” means an entity to which all of the following apply:
   (1)  The entity serves a governmental purpose or performs a governmental function.
   (2)  The entity operates on behalf of one or more political subdivisions.
   (3)  One or more political subdivisions have the powers and interests of an owner with respect to the entity.
   (4)  Control and supervision of the entity is vested in members of one or more political subdivisions.
   b.  “Instrumentality” includes but is not limited to the following entities:
   (1)  The Iowa league of cities.
   (2)  The Iowa state association of counties and any affiliate of the Iowa state association of counties.
   (3)  The Iowa school board association.
   c.  “Instrumentality” does not include a state, county, or city insurance group entity or an employee benefits group entity.
    Sec. 2.  Section 68B.34, Code 2025, is amended to read as follows:
   68B.34  Additional penalty.
   In addition to any penalty contained in any other provision of law, a person who knowingly and intentionally violates a provision of sections 68B.2A through 68B.8 68B.9, sections 68B.22 through 68B.24, or sections 68B.35 through 68B.38 is guilty of a serious misdemeanor and may be reprimanded, suspended, or dismissed from the person’s position or otherwise sanctioned.
EXPLANATION
The inclusion of this explanation does not constitute agreement with
the explanation’s substance by the members of the general assembly.
   This bill prohibits a political subdivision from using moneys received from the imposition of a tax to employ or compensate a lobbyist, or to pay an instrumentality that employs or compensates a lobbyist. For the purposes of the bill, “instrumentality” is defined and includes, among other entities that meet certain qualifications, the Iowa league of cities, the Iowa state association of counties and any of its affiliates, and the Iowa school board association.
   When used in Code chapter 68B (government ethics and lobbying), “lobbyist” means an individual who, by acting directly, receives compensation to encourage the passage, defeat, approval, veto, or modification of legislation, a rule, or an executive order by the members of the general assembly, a state agency, or any statewide elected official; is a designated representative of an organization which has as one of its purposes the encouragement of the passage, defeat, approval, veto, or modification of legislation, a rule, or an executive order before the general assembly, a state agency, or any statewide elected official; represents the position of a federal, state, or local government agency, in which the person serves or is employed as the designated representative, for purposes of encouraging the passage, defeat, approval, veto, or modification of legislation, a rule, or an executive order by members of the general assembly, a state agency, or any statewide elected official; or makes expenditures of more than $1,000 in a year, other than to pay another lobbyist or to communicate with only the members of the general assembly who represent the district in which the individual resides, to communicate in person with members of the general assembly, a state agency, or any statewide elected official for purposes of encouraging the passage, defeat, approval, veto, or modification of legislation, a rule, or an executive order.
   A person who knowingly and intentionally violates the bill is guilty of a serious misdemeanor and if the person is a lobbyist, the person may be reprimanded, suspended, or dismissed from the person’s position or otherwise sanctioned. 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.