Senate File 2354 - Reprinted SENATE FILE 2354 BY COMMITTEE ON STATE GOVERNMENT (SUCCESSOR TO SSB 3210) (As Amended and Passed by the Senate March 1, 2010 ) A BILL FOR An Act relating to campaign finance, including political 1 campaign activities and independent expenditures by 2 corporations, making penalties applicable, and including 3 effective date provisions. 4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 5 SF 2354 (4) 83 jr/rj/jh

S.F. 2354 Section 1. Section 68A.402A, subsection 1, paragraph d, 1 Code 2009, is amended to read as follows: 2 d. The name and mailing address of each person who has 3 made one or more in-kind contributions to the committee when 4 the aggregate market value of the in-kind contributions in 5 a calendar year exceeds the applicable amount specified in 6 paragraph “b” . In-kind contributions shall be designated 7 on a separate schedule from schedules showing contributions 8 of money and shall identify the nature of the contribution 9 and provide its estimated fair market value. A committee 10 receiving an in-kind contribution shall report the estimated 11 fair market value of the in-kind contribution at the time it 12 is provided to the committee. A person providing an in-kind 13 contribution to a committee shall notify the committee of the 14 estimated fair market value of the in-kind contribution at the 15 time the in-kind contribution is provided to the committee. 16 For purposes of this section, the estimated fair market value 17 of the in-kind contribution shall be reported regardless of 18 whether the person has been billed for the cost of the in-kind 19 contribution. 20 Sec. 2. Section 68A.402B, Code 2009, is amended by adding 21 the following new subsection: 22 NEW SUBSECTION . 3. If a person who files an independent 23 expenditure statement and a disclosure report, pursuant to 24 section 68A.404, determines that the person will no longer make 25 an independent expenditure, the person shall notify the board 26 within thirty days following such determination by filing a 27 termination report on forms prescribed by the board. 28 Sec. 3. Section 68A.404, Code Supplement 2009, is amended 29 to read as follows: 30 68A.404 Independent expenditures. 31 1. As used in this section, “independent expenditure” 32 means one or more expenditures in excess of one hundred seven 33 hundred fifty dollars in the aggregate for a communication 34 that expressly advocates the nomination, election, or defeat 35 -1- SF 2354 (4) 83 jr/rj/jh 1/ 9

S.F. 2354 of a clearly identified candidate or the passage or defeat 1 of a ballot issue that is made without the prior approval or 2 coordination with a candidate, candidate’s committee, or a 3 ballot issue committee. 4 2. a. An entity, other than an individual or individuals, 5 shall not make an independent expenditure or disburse 6 funds from its treasury to pay for, in whole or in part, an 7 independent expenditure made by another person without the 8 authorization of a majority of the entity’s board of directors, 9 executive council, or similar organizational leadership body 10 of the use of treasury funds for an independent expenditure 11 involving a candidate or ballot issue committee. Such 12 authorization must occur in the same calendar year in which the 13 independent expenditure is incurred. 14 b. Such authorization shall expressly provide whether 15 the board of directors, executive council, or similar 16 organizational leadership body authorizes one or more 17 independent expenditures that expressly advocate the nomination 18 or election of a candidate or passage of a ballot issue or 19 authorizes one or more independent expenditures that expressly 20 advocate the defeat of a candidate or ballot issue. 21 c. A foreign national shall not make an independent 22 expenditure, directly or indirectly, that advocates the 23 nomination, election, or defeat of any candidate or the 24 passage or defeat of any ballot issue. As used in this 25 section, “foreign national” means a person who is not a citizen 26 of the United States and who is not lawfully admitted for 27 permanent residence. “Foreign national” includes a foreign 28 principal, such as a government of a foreign country or a 29 foreign political party, partnership, association, corporation, 30 organization, or other combination of persons that has its 31 primary place of business in or is organized under the laws of 32 a foreign country. “Foreign national” does not include a person 33 who is a citizen of the United States or who is a national of 34 the United States. 35 -2- SF 2354 (4) 83 jr/rj/jh 2/ 9

S.F. 2354 2. 3. A person, other than a committee registered under 1 this chapter, that makes one or more independent expenditures 2 shall file an independent expenditure statement. All 3 statements and reports required by this section shall be filed 4 in an electronic format as prescribed by rule. 5 a. The requirement to file an independent expenditure 6 statement under this section does not by itself mean 7 that Subject to paragraph “b” , the person filing the independent 8 expenditure statement is required to register and shall file 9 reports under sections 68A.201 and 68A.402 and 68A.402A . 10 An initial report shall be filed at the same time as the 11 independent expenditure statement. Subsequent reports shall be 12 filed according to the same schedule as the office or election 13 to which the independent expenditure was directed. 14 (1) A supplemental report shall be filed on the same dates 15 as in section 68A.402, subsection 2, paragraph “b” , if the 16 person making the independent expenditure either raises or 17 expends more than one thousand dollars. 18 (2) A report filed as a result of this paragraph “a” shall 19 not require the identification of individual members who 20 pay dues to a labor union, organization, or association, 21 or individual stockholders of a publicly traded business 22 corporation. A report filed as a result of this paragraph 23 “a” shall not require the disclosure of any donor or other 24 source of funding to the person making the independent 25 expenditure except when the donation or source of funding, or a 26 portion of the donation or source of funding, was provided for 27 the purpose of furthering the independent expenditure. 28 b. This section does not apply to a candidate, candidate’s 29 committee, state statutory political committee, county 30 statutory political committee, or a political committee. 31 This section does not apply to a federal committee or an 32 out-of-state committee that makes an independent expenditure. 33 3. 4. a. An independent expenditure statement shall be 34 filed within forty-eight hours of the making of an independent 35 -3- SF 2354 (4) 83 jr/rj/jh 3/ 9

S.F. 2354 expenditure in excess of one hundred dollars in the aggregate , 1 or within forty-eight hours of disseminating the communication 2 to its intended audience, whichever is earlier. For purposes 3 of this section, an independent expenditure is made when the 4 independent expenditure communication is purchased or ordered 5 regardless of whether or not the person making the independent 6 expenditure has been billed for the cost of the independent 7 expenditure . 8 b. An independent expenditure statement shall be filed with 9 the board and the board shall immediately make the independent 10 expenditure statement available for public viewing. 11 c. For purposes of this section, an independent expenditure 12 is made at the time that the cost is incurred. 13 4. 5. The independent expenditure statement shall contain 14 all of the following information: 15 a. Identification of the individuals or persons filing the 16 statement. In the case of a corporation, the statement shall 17 disclose the names and addresses of all individual shareholders 18 and the names and addresses of the shareholders in any 19 corporation which is itself a shareholder in the corporation 20 making the independent expenditure. 21 b. Description of the position advocated by the individuals 22 or persons with regard to the clearly identified candidate or 23 ballot issue. 24 c. Identification of the candidate or ballot issue benefited 25 by the independent expenditure. 26 d. The dates on which the expenditure or expenditures took 27 place or will take place. 28 e. Description of the nature of the action taken that 29 resulted in the expenditure or expenditures. 30 f. The fair market value of the expenditure or expenditures. 31 g. A certification that the board of directors, executive 32 council, or similar organizational leadership body expressly 33 authorized the independent expenditure or use of treasury 34 funds for the independent expenditure by resolution or 35 -4- SF 2354 (4) 83 jr/rj/jh 4/ 9

S.F. 2354 other affirmative action within the calendar year when the 1 independent expenditure was incurred. 2 5. 6. Any person making an independent expenditure shall 3 comply with the attribution requirements of section 68A.405. 4 7. A person making an independent expenditure shall not 5 engage or retain an advertising firm or consultant that has 6 also been engaged or retained by the candidate, candidate’s 7 committee, or ballot issue committee that is benefited by the 8 independent expenditure. 9 6. 8. a. The board shall develop, prescribe, furnish, and 10 distribute forms for the independent expenditure statements 11 required by this section. 12 b. The board shall adopt rules pursuant to chapter 17A for 13 the implementation of this section. 14 Sec. 4. Section 68A.405, Code Supplement 2009, is amended 15 to read as follows: 16 68A.405 Attribution statement on published material. 17 1. a. For purposes of this subsection: 18 (1) “Individual” includes a candidate for public office 19 who has not filed a statement of organization under section 20 68A.201. 21 (2) “Organization” includes an organization established to 22 advocate the passage or defeat of a ballot issue but that has 23 not filed a statement of organization under section 68A.201. 24 (3) “Published material” means any newspaper, magazine, 25 shopper, outdoor advertising facility, poster, direct mailing, 26 brochure, internet website, campaign sign, or any other form 27 of printed general public political advertising. “Published 28 material” includes television, video, or motion picture 29 advertising. 30 b. Except as set out in subsection 2, published material 31 designed to expressly advocate the nomination, election, 32 or defeat of a candidate for public office or the passage 33 or defeat of a ballot issue shall include on the published 34 material an attribution statement disclosing who is responsible 35 -5- SF 2354 (4) 83 jr/rj/jh 5/ 9

S.F. 2354 for the published material. 1 c. If the person paying for the published material is an 2 individual, the words “paid for by” and the name and address of 3 the person shall appear on the material. 4 d. If more than one individual is responsible, the words 5 “paid for by”, the names of the individuals, and either the 6 addresses of the individuals or a statement that the addresses 7 of the individuals are on file with the Iowa ethics and 8 campaign disclosure board shall appear on the material. 9 e. If the person responsible is an organization, the words 10 “paid for by”, the name and address of the organization, and 11 the name of one officer of the organization shall appear on the 12 material. 13 f. If the person responsible is a corporation, the words 14 “paid for by”, the name and address of the corporation, and the 15 name and title of the corporation’s chief executive officer 16 shall appear on the material. 17 f. g. If the person responsible is a committee that has 18 filed a statement of organization pursuant to section 68A.201, 19 the words “paid for by” and the name of the committee shall 20 appear on the material. 21 h. If the published material is the result of an independent 22 expenditure subject to section 68A.404, the published material 23 shall include a statement that the published material was not 24 authorized by any candidate, candidate’s committee, or ballot 25 issue committee. 26 2. The requirement to include an attribution statement does 27 not apply to any of the following: 28 a. The editorials or news articles of a newspaper or 29 magazine that are not paid political advertisements. 30 b. Small items upon which the inclusion of the statement is 31 impracticable including, but not limited to, campaign signs, 32 bumper stickers, pins, buttons, pens, political business cards, 33 and matchbooks. 34 c. T-shirts, caps, and other articles of clothing. 35 -6- SF 2354 (4) 83 jr/rj/jh 6/ 9

S.F. 2354 d. Any published material that is subject to federal 1 regulations regarding an attribution requirement. 2 e. Any material published by an individual, acting 3 independently, who spends one hundred dollars or less of the 4 individual’s own money to advocate the passage or defeat of a 5 ballot issue. 6 3. For television, video, or motion picture advertising, 7 the attribution statement shall be displayed on the screen in a 8 clearly readable manner for at least four seconds. 9 3. 4. The board shall adopt rules relating to the placing 10 of an attribution statement on published materials. 11 Sec. 5. Section 68A.503, Code Supplement 2009, is amended 12 by striking the section and inserting in lieu thereof the 13 following: 14 68A.503 Financial institution, insurance company, and 15 corporation contributions prohibited. 16 1. Except as provided in subsections 3, 4, 5, and 6, an 17 insurance company, savings and loan association, bank, credit 18 union, or corporation shall not make a monetary or in-kind 19 contribution to a candidate or committee except for a ballot 20 issue committee. 21 2. Except as provided in subsection 3, a candidate or 22 committee, except for a ballot issue committee, shall not 23 receive a monetary or in-kind contribution from an insurance 24 company, savings and loan association, bank, credit union, or 25 corporation. 26 3. An insurance company, savings and loan association, 27 bank, credit union, or corporation may use money, property, 28 labor, or any other thing of value of the entity for the 29 purposes of soliciting its stockholders, administrative 30 officers, and members for contributions to a political 31 committee sponsored by that entity and for financing the 32 administration of a political committee sponsored by that 33 entity. The entity’s employees to whom the foregoing authority 34 does not extend may voluntarily contribute to such a political 35 -7- SF 2354 (4) 83 jr/rj/jh 7/ 9

S.F. 2354 committee but shall not be solicited for contributions. A 1 candidate or committee may solicit, request, and receive money, 2 property, labor, and any other thing of value from a political 3 committee sponsored by an insurance company, savings and loan 4 association, bank, credit union, or corporation as permitted 5 by this subsection. 6 4. The prohibitions in subsections 1 and 2 shall not apply 7 to an insurance company, savings and loan association, bank, 8 credit union, or corporation engaged in any of the following 9 activities: 10 a. Using its funds to encourage registration of voters and 11 participation in the political process or to publicize public 12 issues. 13 b. Using its funds to expressly advocate the passage or 14 defeat of ballot issues. 15 c. Using its funds to place campaign signs as permitted 16 under section 68A.406. 17 d. Using its funds for independent expenditures as provided 18 in section 68A.404. 19 5. The prohibitions in subsections 1 and 2 shall not 20 apply to media organizations when discussing candidacies, 21 nominations, public officers, or public questions. The board 22 shall adopt rules prohibiting the owner, publisher, or editor 23 of a sham newspaper from using the sham newspaper to promote 24 in any way the candidacy of such a person for any public 25 office. As used in this subsection, “sham newspaper” means 26 a newspaper that does not meet the requirements set forth in 27 section 618.3 and “owner” means a person having an ownership 28 interest exceeding ten percent of the equity or profits of the 29 newspaper. 30 6. The prohibitions in subsections 1 and 2 shall not 31 apply to a nonprofit organization communicating with its own 32 members. The board shall adopt rules pursuant to chapter 17A 33 to administer this subsection. 34 7. For purposes of this section “corporation” means a 35 -8- SF 2354 (4) 83 jr/rj/jh 8/ 9

S.F. 2354 for-profit or nonprofit corporation organized pursuant to the 1 laws of this state, the United States, or any other state, 2 territory, or foreign country. 3 Sec. 6. Section 490.120, Code 2009, is amended by adding the 4 following new subsection: 5 NEW SUBSECTION . 13. The document must contain a statement 6 that the corporation agrees to refrain from any campaign 7 activities prohibited under chapter 68A. 8 Sec. 7. EMERGENCY RULES. The board shall adopt emergency 9 rules under section 17A.4, subsection 3, and section 17A.5, 10 subsection 2, paragraph “b” , to implement the provisions of this 11 Act and the rules shall be effective immediately upon filing 12 unless a later date is specified in the rules. Any rules 13 adopted in accordance with this section shall also be published 14 as a notice of intended action as provided in section 17A.4. 15 Sec. 8. EFFECTIVE UPON ENACTMENT. This Act, being deemed of 16 immediate importance, takes effect upon enactment. 17 -9- SF 2354 (4) 83 jr/rj/jh 9/ 9