Senate File 203 - IntroducedA Bill ForAn Act 1relating to campaign finance by establishing a
2voter-owned Iowa clean elections Act and fund, providing
3for funding from specified sources, including an income
4tax checkoff, providing an income tax exemption for
5contributions made to the fund, providing penalties, and
6including effective date provisions.
7BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1   Section 1.  Section 68A.603, Code 2017, is amended to read
2as follows:
   368A.603  Rules promulgated.
   4The ethics and campaign disclosure board shall administer
5the provisions of sections 68A.601 through 68A.609, 68A.602,
6and 68A.604 through 68A.610
and shall promulgate all necessary
7rules in accordance with chapter 17A.
8   Sec. 2.  NEW SECTION.  68A.610  Checkoff — income tax —
9voter-owned Iowa clean elections.
  
   10A person whose state income tax liability for any taxable
11year is five dollars or more may direct that five dollars
12of that liability be paid over to the voter-owned Iowa
13clean elections fund, as established in section 68A.823,
14when submitting the person’s state income tax return to the
15department of revenue. In the case of a joint return of
16husband and wife having a state income tax liability of ten
17dollars or more, each spouse may direct that five dollars
18be paid to the fund. The director of revenue shall provide
19space for the voter-owned Iowa clean elections fund income
20tax checkoff on the income tax form. An explanation shall
21be included which clearly states that the checkoff does not
22constitute an additional tax liability. The action taken by a
23person for the checkoff is irrevocable.
24   Sec. 3.  NEW SECTION.  68A.801  Definitions.
  
   25For the purposes of this subchapter, unless the context
26otherwise requires:
   271.  “Allowable contribution” means a qualifying contribution
28or a seed money contribution.
   292.  “Board” means the Iowa ethics and campaign disclosure
30board established under section 68B.32.
   313.  “Clean election campaign qualifying period” means the
32period during which candidates are permitted to collect
33qualifying contributions in order to qualify for clean election
34campaign funding. The period begins ninety days before the
35beginning of the primary election campaign period and ends
-1-1thirty days before the beginning of the primary election
2campaign period.
   34.  “Coordination” means a payment made for a communication
4or anything of value that is for the purpose of influencing the
5outcome of an election and that is made by a person according
6to at least one of the following:
   7a.  In cooperation, consultation, or concert with, at
8the request or suggestion of, or pursuant to, a particular
9understanding with a candidate, a candidate’s committee, or an
10agent acting on behalf of a candidate or candidate’s committee.
   11b.  For the dissemination, distribution, or republication,
12in whole or in part, of any broadcast or any written, graphic,
13or other form of campaign material prepared by a candidate,
14a candidate’s committee, or an agent of a candidate or
15candidate’s committee.
   16c.  Based on specific information about the candidate’s
17plans, projects, or needs provided to the person making the
18payment by the candidate or the candidate’s agent who provides
19the information with a view toward having the payment made.
   20d.  If in the same election cycle in which the payment is
21made, the person making the payment is serving or has served as
22a member, employee, fund-raiser, or agent of the candidate or
23candidate’s committee in an executive or policymaking position.
   24e.  If the person making the payment has served in any formal
25policy or advisory position with the candidate’s campaign or
26has participated in strategic or policymaking discussions with
27the candidate’s campaign relating to the candidate’s pursuit of
28nomination for election, or election, to office, in the same
29election cycle as the election cycle in which the payment is
30made.
   31f.  If the person making the payment retains the professional
32services of an individual or person who, in a nonministerial
33capacity, has provided or is providing campaign-related
34services in the same election cycle to a candidate who
35is pursuing the same nomination or election as any of the
-2-1candidates to whom the communication refers. For purposes
2of this section, “professional services” includes services in
3support of a candidate’s pursuit of nomination for election or
4election to office such as polling, media advice, direct mail,
5fund-raising, or campaign research services.
   65.  “Electioneering communication” means any communication
7that refers to a clearly identified candidate for elected
8public office if the communication has the effect of
9encouraging or discouraging a vote for the candidate,
10regardless of whether the communication expressly advocates a
11vote for or against the candidate.
   126.  “Excess expenditure amount” means the amount of
13money spent or obligated to be spent by a nonparticipating
14candidate in excess of the clean money amount available to a
15participating candidate running for the same office.
   167.  “Express advocacy” means the same as defined in section
1768A.102.
   188.  “General election campaign period” means the period
19beginning the day after the primary election and ending on the
20day of the general election.
   219.  “Independent candidate” means a candidate who does not
22represent a political party as defined by section 43.2.
   2310.  “Independent expenditure” means an expenditure made
24by a person or group of persons other than a candidate or
25candidate’s committee that meets both of the following
26conditions:
   27a.  The expenditure is made for a communication that contains
28express advocacy.
   29b.  The expenditure is made without the participation or
30cooperation of and without coordination with a candidate or a
31candidate’s committee.
   3211.  “Nonparticipating candidate” means a candidate who is
33on the ballot but has chosen not to apply for clean election
34campaign funding or a candidate who is on the ballot and
35has applied for but has not satisfied the requirements for
-3-1receiving clean election campaign funding.
   212.  “Participating candidate” means a candidate who
3qualifies for clean election campaign funding. Such candidates
4are eligible to receive clean election campaign funding during
5primary or general election campaign periods.
   613.  “Party candidate” means a candidate who represents a
7political party as defined by section 43.2.
   814.  “Primary election campaign period” means the period
9beginning ninety days before the primary election and ending on
10the day of the primary election.
   1115.  “Qualifying contribution” means a contribution of five
12dollars or more that is received during the designated clean
13election campaign qualifying period by a candidate seeking to
14become eligible for clean election campaign funding and that is
15acknowledged by a written receipt identifying the contributor.
16However, if the annual median household income of a legislative
17district is at or below one hundred percent of the most recent
18federal poverty guideline based on United States census bureau
19data, the qualifying contribution is one dollar.
   2016.  “Seed money contribution” means a contribution of no
21more than one hundred dollars made by an individual person who
22is at least eighteen years of age during the seed money period,
23but specifically excludes all of the following:
   24a.  Payments by a membership organization for the costs of
25communications to its members.
   26b.  Payments by a membership organization for the purpose of
27facilitating the making of qualifying contributions.
   28c.  The cash value of volunteer activity, including the
29payment of incidental expenses of volunteers.
   3017.  “Seed money period” means the period beginning the
31day following the previous general election for that office
32and ending on the last day of the clean election campaign
33qualifying period. The “seed money period” is the exploratory
34period during which candidates who wish to become eligible
35for clean election campaign funding for the next elections
-4-1are permitted to raise and spend a limited amount of private
2seed money, from contributions of up to one hundred dollars
3per individual, for the purpose of determining whether to
4become a candidate and fulfilling the clean election campaign
5eligibility requirements.
6   Sec. 4.  NEW SECTION.  68A.802  Eligibility for party
7candidates.
  
   81.  A party candidate qualifies as a participating candidate
9for the primary election campaign period if the candidate does
10both of the following:
   11a.  The candidate files a declaration with the board that
12the candidate has complied and will comply with all of the
13requirements of this subchapter, including the requirement
14that during the seed money period and the clean election
15campaign qualifying period the candidate not accept or
16spend private contributions from any source other than seed
17money contributions and clean election campaign qualifying
18contributions, unless the provisions of section 68A.804 apply.
   19b.  The candidate meets both of the following qualifying
20contribution requirements before the close of the clean
21election campaign qualifying period:
   22(1)  A party candidate must collect both qualifying
23contributions and signatures as follows:
   24(a)  For the office of governor, from five hundred eligible
25electors in each congressional district.
   26(b)  For statewide office other than governor, from two
27hundred fifty eligible electors in each congressional district.
   28(c)  For the Iowa senate, from two hundred eligible electors
29in the senate candidate’s electoral district.
   30(d)  For the Iowa house of representatives, from one hundred
31eligible electors in the house candidate’s electoral district.
   32(2)  Each qualifying contribution must meet all requirements
33of this section.
   342.  Contributors shall be eligible electors who reside
35within the candidate’s electoral district and who are therefore
-5-1eligible to vote for that candidate.
   23.  Qualifying contributions shall be:
   3a.  Made in cash, check, money order, or credit or debit
4card.
   5b.  Gathered by the candidate personally or by volunteers who
6do not receive compensation.
   7c.  Acknowledged by a receipt to the contributor, with
8a copy to be kept by the candidate and a third copy to be
9submitted to the board. The receipt shall include a signed
10statement that the contributor understands that the purpose of
11the contribution is to help the candidate qualify for clean
12election campaign funding and that the contribution is made
13without coercion or reimbursement. The receipt shall include
14the contributor’s signature, printed name, home address, and
15telephone number, and the name of the candidate on whose behalf
16the contribution is made.
   17d.  Paid over to the board for deposit in the voter-owned
18Iowa clean elections fund established under section 68A.823,
19with the signed and completed receipt, according to a schedule
20and procedure to be determined by the board. A contribution
21submitted as a qualifying contribution that does not include
22the signed and completed receipt shall not be counted as a
23qualifying contribution.
   244.  A party candidate qualifies as a participating candidate
25for the general election campaign period when the candidate
26does both of the following:
   27a.  The candidate has met all of the applicable requirements
28of this subchapter and filed a declaration with the board
29that the candidate has fulfilled and will fulfill all of the
30requirements of a participating candidate as stated in this
31subchapter.
   32b.  As a participating candidate during the primary election
33campaign period, the candidate had the highest number of votes
34of the candidates contesting the primary election from the
35candidate’s respective party and won the party’s nomination.
-6-
1   Sec. 5.  NEW SECTION.  68A.803  Eligibility for independent
2candidates.
  
   31.  An independent candidate qualifies as a participating
4candidate for the primary election campaign period if the
5candidate does both of the following:
   6a.  The candidate files a declaration with the board that
7the candidate has complied and will comply with all of the
8requirements of this subchapter, including the requirement
9that during the seed money period and the clean election
10campaign qualifying period the candidate not accept or
11spend private contributions from any source other than seed
12money contributions and clean election campaign qualifying
13contributions, unless the provisions of section 68A.804 apply.
   14b.  The candidate meets the following qualifying contribution
15requirements before the close of the clean election campaign
16qualifying period:
   17(1)  An independent candidate shall collect the same number
18of qualifying contributions as required of a party candidate
19for the same office under section 68A.802.
   20(2)  Each qualifying contribution must meet all requirements
21of this section.
   222.  Contributors shall be registered voters who reside
23within the candidate’s electoral district and who are therefore
24eligible to vote for that candidate.
   253.  Qualifying contributions shall be:
   26a.  Made in cash, check, money order, or credit or debit
27card.
   28b.  Gathered by the candidate personally or by volunteers who
29do not receive compensation.
   30c.  Acknowledged by a receipt to the contributor, with
31a copy to be kept by the candidate and a third copy to be
32submitted to the board. The receipt shall include a signed
33statement that the contributor understands that the purpose of
34the contribution is to help the candidate qualify for clean
35election campaign funding and that the contribution is made
-7-1without coercion or reimbursement. The receipt shall include
2the contributor’s signature, printed name, home address, and
3telephone number, and the name of the candidate on whose behalf
4the contribution is made.
   5d.  Paid over to the board for deposit in the voter-owned
6Iowa clean elections fund established under section 68A.823,
7with the signed and completed receipt, according to a schedule
8and procedure to be determined by the board. A contribution
9submitted as a qualifying contribution that does not include
10the signed and completed receipt shall not be counted as a
11qualifying contribution.
   124.  An independent candidate qualifies as a participating
13candidate for the general election campaign period when the
14candidate does both of the following:
   15a.  If, prior to the primary election, the candidate has met
16all of the applicable requirements of this subchapter and filed
17a declaration with the board that the candidate has fulfilled
18and will fulfill all of the requirements of a participating
19candidate as stated in this subchapter.
   20b.  If, during the primary election campaign period, the
21candidate has fulfilled all the requirements of a participating
22candidate as stated in this subchapter.
23   Sec. 6.  NEW SECTION.  68A.804  Transition rule for current
24election cycle.
   25During the election cycle in effect on the date of enactment
26of this Act, a candidate may be certified as a participating
27candidate, notwithstanding the acceptance of contributions
28or making of expenditures from private funds before the date
29of enactment of this Act that would, absent this section,
30disqualify the candidate as a participating candidate, provided
31that any private funds accepted but not expended before the
32date of enactment of this Act shall either be returned to
33the contributor or submitted to the board for deposit in the
34voter-owned Iowa clean elections fund established under section
3568A.823.
-8-
1   Sec. 7.  NEW SECTION.  68A.805  Continuing obligation to
2comply.
   3A participating candidate who accepts any benefits under
4section 68A.813 during the primary election campaign period
5shall comply with all the requirements of this subchapter
6through any remaining time during the primary election campaign
7period as well as through the general election campaign period
8whether or not the candidate continues to accept benefits.
9   Sec. 8.  NEW SECTION.  68A.806  Contributions and
10expenditures.
   111.  During the primary and general election campaign
12periods, a participating candidate who has voluntarily agreed
13to participate in clean election campaign financing shall not
14accept private contributions from any source other than the
15candidate’s political party, as specified in section 68A.808.
   162.  A person shall not make a contribution in violation
17of section 68A.502. A participating candidate who receives
18a qualifying contribution or a seed money contribution that
19is not from the person listed on the receipt as required by
20this subchapter shall pay to the board for deposit in the
21voter-owned Iowa clean elections fund established under section
2268A.823 the entire amount of such contribution.
   233.  The board shall issue each participating candidate a
24card known as the “clean election campaign debit card”, and a
25line of debit entitling the candidate to draw clean election
26campaign funds to pay for all campaign costs and expenses up to
27the amount of funding the candidate has received. During the
28primary and general election campaign periods, a participating
29candidate shall pay by means of the board’s clean election
30campaign debit card. A participating candidate shall not pay
31campaign costs by cash, check, money order, loan, or by any
32other financial means other than the clean election campaign
33debit card.
   344.  Eligible candidates shall furnish complete campaign
35records, including all records of seed money contributions and
-9-1qualifying contributions, to the board at regular filing times,
2or on request by the board. Candidates shall cooperate with
3any audit or examination conducted or ordered by the board.
4   Sec. 9.  NEW SECTION.  68A.807  Nonparticipating candidates
5— contribution limits.
   6Nonparticipating candidates shall be subject to the
7following contribution limits:
   81.  Candidates for statewide office:
   9a.  One thousand dollars in the aggregate per individual
10contribution.
   11b.  Five thousand dollars in the aggregate per political
12committee contribution.
   132.  Candidates for the Iowa senate and house of
14representatives:
   15a.  Five hundred dollars in the aggregate per individual
16contribution.
   17b.  One thousand dollars in the aggregate per political
18committee contribution.
19   Sec. 10.  NEW SECTION.  68A.808  Political party contributions
20and expenditures.
   211.  Participating candidates may accept monetary or in-kind
22contributions from political parties provided that the
23aggregate amount of such contributions from all political party
24committees combined does not exceed the equivalent of five
25percent of the clean election campaign financing amount for
26that office.
   272.  In-kind contributions made during a general election
28campaign period on behalf of a group of the party’s candidates
29shall not be considered a prohibited party contribution or
30count against the five percent limit established in subsection
311 if such group includes at least fifty-one percent of the
32candidates whose names will appear on the general election
33ballot in the political subdivision represented by the party
34committee making such in-kind contributions.
   353.  Contributions made to, and expenditures made by,
-10-1political parties during primary and general campaign
2periods shall be reported to the board on the same basis as
3contributions and expenditures made to or by candidates.
   44.  This section and this subchapter shall not prevent
5political party funds from being used for any of the following:
   6a.  General operating expenses of the party.
   7b.  Conventions.
   8c.  Nominating and endorsing candidates.
   9d.  Identifying, researching, and developing the party’s
10positions on issues.
   11e.  Party platform activities.
   12f.  Voter registration drives that are not specific to any
13candidate.
   14g.  Get-out-the-vote drives that are not specific to any
15candidate.
   16h.  Travel expenses for noncandidate party leaders and staff.
   17i.  Other party-building activities, as defined by rule of
18the board, that are not specific to any candidate.
   19j.  Employing a staff person to provide election services to
20two or more candidates.
21   Sec. 11.  NEW SECTION.  68A.809  Use of personal funds.
   221.  Personal funds contributed as seed money by a candidate
23seeking to become eligible as a participating candidate or by
24the candidate’s spouse shall not exceed one hundred dollars per
25contributor.
   262.  Personal funds shall not be used to meet the qualifying
27contribution requirement except for one five-dollar
28contribution from the candidate and one five-dollar
29contribution from the candidate’s spouse.
30   Sec. 12.  NEW SECTION.  68A.810  Seed money.
   311.  The only private contributions a candidate seeking
32to become eligible for clean election campaign funding shall
33accept, other than qualifying contributions, are seed money
34contributions contributed by individual persons who are at
35least eighteen years of age prior to the end of the clean
-11-1election campaign qualifying period.
   22.  A seed money contribution shall not exceed one hundred
3dollars, and the aggregate amount of seed money contributions
4accepted by a candidate seeking to become eligible for clean
5election campaign funding shall not exceed the relevant limit,
6as follows:
   7a.  Twenty-five thousand dollars for a candidate team running
8for governor and lieutenant governor.
   9b.  Fifteen thousand dollars for a candidate running for
10statewide office other than governor or lieutenant governor.
   11c.  Two thousand dollars for a candidate running for the Iowa
12senate.
   13d.  One thousand dollars for a candidate running for the Iowa
14house of representatives.
   153.  Receipts for seed money contributions shall include
16the contributor’s signature, printed name, street address and
17zip code, telephone number, occupation, and name of employer.
18Contributions shall not be accepted if the required disclosure
19information is not received.
   204.  Seed money shall be spent only during the clean election
21campaign qualifying period. Seed money shall not be spent
22during the primary or general election campaign periods.
   235.  Within forty-eight hours after the close of the clean
24election campaign qualifying period, candidates seeking to
25become eligible for clean election campaign funding shall do
26both of the following:
   27a.  Fully disclose all seed money contributions and
28expenditures to the board.
   29b.  Pay over to the board for deposit in the voter-owned
30Iowa clean elections fund any seed money the candidate has
31raised during the designated seed money period that exceeds the
32aggregate seed money limit.
33   Sec. 13.  NEW SECTION.  68A.811  Participation in debates.
   341.  Participating candidates in contested races shall
35participate in all of the following:
-12-
   1a.  For the offices of governor and lieutenant governor:
   2(1)  One one-hour debate during a contested primary
3election.
   4(2)  Two one-hour debates during a contested general
5election.
   6b.  For all other offices:
   7(1)  One one-hour debate during a contested primary
8election.
   9(2)  One one-hour debate during a contested general
10election.
   112.  Nonparticipating candidates for the same office whose
12names will appear on the ballot shall be invited to join the
13debates.
14   Sec. 14.  NEW SECTION.  68A.812  Certification.
   151.  No more than five days after a candidate applies for
16clean election campaign funding benefits, the board shall
17certify that the candidate is or is not eligible to receive
18clean election campaign funds.
   192.  The board may revoke a candidate’s eligibility if
20the board determines that the candidate has violated the
21requirements of this subchapter, in which case the candidate
22shall repay all clean election campaign funds received by the
23candidate.
   243.  The candidate’s request for certification shall be
25signed by the candidate and the treasurer of the candidate’s
26committee, both under penalty of perjury.
   274.  The board’s determination is final except that it is
28subject to examination and audit by an outside agency and to
29prompt judicial review, in compliance with rules promulgated by
30the board in accordance with chapter 17A.
31   Sec. 15.  NEW SECTION.  68A.813  Benefits provided to
32candidates eligible to receive clean election campaign funding.
   331.  Candidates who qualify for clean election campaign
34funding for primary and general elections shall receive all of
35the following:
-13-
   1a.  Clean election campaign funding from the board for each
2election, the amount of which is specified in section 68A.815.
3This funding may be used to finance any and all campaign
4expenses during the particular campaign period for which it is
5received.
   6b.  Additional clean election campaign funding to match
7any excess expenditure amount spent by a nonparticipating
8candidate, as specified in section 68A.817.
   9c.  Additional clean election campaign funding to match any
10independent expenditure made in opposition to their candidacies
11or on behalf of their opponents’ candidacies, as specified in
12section 68A.819.
   13d.  Additional clean election campaign funding to match
14any electioneering communication expenditure, as specified in
15section 68A.820.
   162.  The maximum aggregate amount of additional funding above
17the initial allocation determined under section 68A.815 that
18a participating candidate shall receive to match independent
19expenditures, the excess expenditures of nonparticipating
20candidates, and electioneering communication expenditures shall
21be two hundred percent of the full amount of clean election
22campaign funding allocated to a participating candidate for a
23particular primary or general election campaign period.
24   Sec. 16.  NEW SECTION.  68A.814  Schedule of clean election
25campaign funding payments.
   261.  An eligible candidate shall receive clean election
27campaign funding for the primary election campaign period
28on the date on which the board certifies the candidate as a
29participating candidate. This certification shall take place
30no later than five days after the candidate has submitted the
31required number of qualifying contributions and a declaration
32stating that the candidate has complied with all other
33requirements for eligibility as a participating candidate, but
34no earlier than the beginning of the primary election campaign
35period.
-14-
   12.  An eligible candidate shall receive clean election
2campaign funding for the general election campaign period
3within forty-eight hours after certification of the primary
4election results.
5   Sec. 17.  NEW SECTION.  68A.815  Determination of clean
6election campaign funding amounts.
   71.  a.  For party candidates, the amount of clean election
8campaign funding for a contested primary election is as
9follows:
   10(1)  Seven hundred fifty thousand dollars for a candidate
11team running for governor and lieutenant governor.
   12(2)  Seventy-five thousand dollars for a candidate for
13statewide office other than governor and lieutenant governor.
   14(3)  Twenty-two thousand five hundred dollars for a
15candidate running for the Iowa senate.
   16(4)  Fifteen thousand dollars for a candidate running for the
17Iowa house of representatives.
   18b.  The clean election campaign funding amount for an
19eligible party candidate in an uncontested primary election
20is twenty-five percent of the amount provided in a contested
21primary election.
   22c.  In a contested general election, if an eligible party
23candidate or all of the candidates of the candidate’s party
24combined received at least twenty percent of the total number
25of votes cast for all candidates seeking that office in
26the most recent primary election or in the previous general
27election, the candidate shall receive the full amount of clean
28election campaign funding for the general election, as follows:
   29(1)  Three million dollars for a candidate team running for
30governor and lieutenant governor.
   31(2)  Two hundred thousand dollars for a candidate for
32statewide office other than governor and lieutenant governor.
   33(3)  Forty thousand dollars for a candidate running for the
34Iowa senate.
   35(4)  Thirty thousand dollars for a candidate running for the
-15-1Iowa house of representatives.
   2d.  The clean election campaign funding amount for an
3eligible party candidate in an uncontested general election
4is ten percent of the amount provided in a contested general
5election for the same office.
   62.  a.  For eligible independent candidates, the clean
7election campaign funding amount for the primary election
8campaign period is twenty-five percent of the amount of clean
9election campaign funding received by a party candidate in a
10contested primary election for the same office.
   11b.  The clean election campaign funding amount for an
12eligible independent candidate in the general election is the
13same as the full amount received by a party candidate in the
14general election for the same office.
   15c.  After the first cycle of clean election campaign
16financing elections, the board shall modify all clean election
17campaign funding amounts based on the percentage increase in
18the consumer price index, for all urban consumers, United
19States city average, as published in the federal register
20by the United States department of labor, bureau of labor
21statistics, that reflects the percentage increase in the
22consumer price index for the twelve-month period ending
23December 31 of the previous year.
24   Sec. 18.  NEW SECTION.  68A.816  Expenditures made with clean
25election campaign funds.
   261.  The clean election campaign funding received by a
27participating candidate shall be used only for the purpose of
28defraying that candidate’s campaign-related expenses during
29the particular election campaign period for which the clean
30election campaign funding was received.
   312.  Payments shall not be used for the following:
   32a.  Payments that are in violation of the law.
   33b.  Payments that repay any personal, family, or business
34loans, expenditures, or debts.
35   Sec. 19.  NEW SECTION.  68A.817  Disclosure of excess spending
-16-1by nonparticipating candidates.
   21.  If a nonparticipating candidate’s total expenditures
3exceed the amount of clean election campaign funding allocated
4to the candidate’s clean election campaign opponent, the
5candidate shall declare to the board within forty-eight hours
6every excess expenditure amount that, in the aggregate, is more
7than one thousand dollars.
   82.  During the last twenty days before the end of the
9relevant campaign period, a nonparticipating candidate shall
10declare to the board each excess expenditure amount over
11five hundred dollars within twenty-four hours of when the
12expenditure is made or obligated to be made.
   133.  The board may make its own determination as to whether
14excess expenditures have been made by nonparticipating
15candidates.
   164.  Upon receiving an excess expenditure declaration, the
17board shall immediately release additional clean election
18campaign funding to the opposing participating candidate
19or candidates equal to the excess expenditure amount the
20nonparticipating candidate has spent or intends to spend,
21subject to the limit set forth in section 68A.813.
22   Sec. 20.  NEW SECTION.  68A.818  Campaign advertisements.
   23All broadcast and print advertisements placed by candidates
24or candidate’s committees shall, in addition to the
25requirements of section 68A.405, include a clear written or
26spoken statement indicating that the candidate has approved of
27the contents of the advertisement.
28   Sec. 21.  NEW SECTION.  68A.819  Disclosure of independent
29expenditures — additional clean election campaign funding.
   301.  Any person or group of persons who makes or obligates
31to make an independent expenditure during a primary or general
32election campaign period which, in the aggregate, exceeds one
33thousand dollars, shall report each expenditure within forty-
34eight hours to the board.
   352.  The report to the board shall include a statement,
-17-1under penalty of perjury, by the person or persons making
2the independent expenditure identifying the candidate the
3independent expenditure is intended to help elect or defeat
4and affirming that the expenditure is totally independent and
5involves no coordination with a candidate or a political party.
   6a.  An individual or organization may file a complaint with
7the board if the candidate or the organization believes that
8the statement according to this subsection is false.
   9b.  A hearing on a complaint under this subsection shall be
10held within three business days of filing and a decision issued
11within seven days of filing.
   123.  Any person or group of persons who makes or obligates
13to make an independent expenditure during the last twenty days
14before the end of the relevant campaign period which, in the
15aggregate, exceeds five hundred dollars, shall report each
16expenditure within twenty-four hours to the board.
   174.  Upon receiving a report that an independent expenditure
18has been made or obligated to be made, the board shall
19immediately release additional clean election campaign funding,
20equal in amount to the cost of the independent expenditure, to
21all participating candidates the independent expenditure is
22intended to oppose or defeat, subject to the limit set forth
23in section 68A.813.
24   Sec. 22.  NEW SECTION.  68A.820  Electioneering communications
25— disclosure — additional clean election campaign funding.
   261.  A person who makes or obligates to make a disbursement to
27purchase an electioneering communication shall file a report
28with the board not later than forty-eight hours after making or
29obligating to make the disbursement, containing the following
30information:
   31a.  The amount of the disbursement.
   32b.  The name and address of the person making the
33disbursement.
   34c.  The purpose of the electioneering communication.
   352.  Upon receiving a report that an electioneering
-18-1communication has been made or obligated to be made, and
2upon determination that the electioneering communication can
3reasonably be interpreted as having the effect of promoting
4the defeat of a participating candidate or the election
5of that candidate’s opponent, the board shall immediately
6release to that candidate additional clean election campaign
7funding, equal in amount to the cost of the electioneering
8communication, subject to the limit set forth in section
968A.813.
10   Sec. 23.  NEW SECTION.  68A.821  Voter information program.
   111.  The board shall establish and administer a nonpartisan
12voter information program, including an advisory council
13consisting of representatives of nonprofit organizations,
14political parties, the media, and interested citizens.
   152.  The voter information program advisory council may
16establish a voter information program for the purpose of
17providing voters with election-related information and
18fostering political dialogue and debate.
   193.  The voter information program advisory council
20shall organize the publication and distribution of a voter
21information guide that includes important information about the
22following issues:
   23a.  Candidates appearing on the ballot, including
24biographical material submitted by the candidates.
   25b.  Whether candidates are funding their campaigns with
26public money or private money.
   27c.  Policy statements by the candidates or their political
28parties on issues designated by the council and other issues.
   29d.  Candidates’ voting records.
30   Sec. 24.  NEW SECTION.  68A.822  Debates.
   311.  A nonpartisan organization that is involved in
32providing information to the public concerning elections, or a
33nonpartisan organization that has been involved in education
34and the advocacy of open, clean election and campaign laws for
35at least five years, may host and sponsor voter-owned Iowa
-19-1clean election candidate debates in contested primary and
2general elections.
   32.  All participating candidates shall participate in the
4debates and all nonparticipating candidates for the same office
5whose names will appear on the ballot shall be invited to join
6the debates.
7   Sec. 25.  NEW SECTION.  68A.823  Voter-owned Iowa clean
8elections fund (VOICE) — nature and purposes.
   91.  A voter-owned Iowa clean elections fund is established as
10a separate fund within the office of the state treasurer, under
11the control of the board, for the following purposes:
   12a.  Providing public financing for the election campaigns of
13certified participating candidates during primary election and
14general election campaign periods.
   15b.  Paying for the administrative and enforcement costs of
16the board in relation to this subchapter.
   172.  The fund shall consist of moneys received pursuant to
18section 68A.824. Notwithstanding section 8.33, unencumbered
19or unobligated moneys and any interest earned on moneys in the
20fund on June 30 of any fiscal year shall not revert to the
21general fund of the state but shall remain in the fund and be
22available for expenditure in subsequent years.
23   Sec. 26.  NEW SECTION.  68A.824  Funding.
   24In addition to any moneys appropriated by the general
25assembly to the voter-owned Iowa clean elections fund
26established in section 68A.823, the following moneys shall be
27deposited in the fund:
   281.  The qualifying contributions required of candidates
29seeking to become certified as participating candidates
30according to section 68A.802 or 68A.803 and candidates’ excess
31qualifying contributions.
   322.  Moneys credited to the fund pursuant to sections 68A.610
33and 556.18.
   343.  The excess seed money contributions of candidates
35seeking to become certified as participating candidates.
-20-
   14.  Moneys distributed to any participating candidate
2who does not remain a candidate until the primary or general
3election for which they were distributed.
   45.  Civil penalties levied by the board against candidates
5for violations of this subchapter.
   66.  Voluntary donations made directly to the fund.
   77.  Any other sources of revenue designated by the general
8assembly.
9   Sec. 27.  NEW SECTION.  68A.825  Powers and procedures.
   10The board shall have the following powers and duties, in
11addition to those granted in this chapter and chapter 68B, when
12administering this subchapter:
   131.  After every primary and general election, the board
14may conduct random audits and investigations to ensure
15compliance with this subchapter. The subjects of such audits
16and investigations shall be selected on the basis of impartial
17criteria established by a vote of at least four members of the
18board.
   192.  a.  The board may investigate anonymous complaints.
   20b.  The identity of a complainant may be kept confidential
21if the complainant states in the complaint that revealing
22the identity of the complainant could reasonably result in
23disciplinary action or loss of employment.
   243.  The board may seek injunctions when all of the following
25conditions are met:
   26a.  There is a substantial likelihood that a violation of
27this subchapter is occurring or is about to occur.
   28b.  The failure to act expeditiously will result in
29irreparable harm to a party affected by the violation or
30potential violation.
   31c.  Expeditious action will not cause undue harm or prejudice
32to the interests of others.
   33d.  The public interest would be best served by the issuance
34of an injunction.
   354.  The board may levy civil penalties for violations of
-21-1this subchapter. Civil penalties shall be deposited in the
2voter-owned Iowa clean elections fund.
   35.  The board shall refer criminal violations to the county
4attorney or attorney general for prosecution.
   56.  The board may participate fully in any actions filed
6under this section.
   77.  The board shall adopt rules pursuant to chapter 17A as
8necessary to administer this subchapter.
9   Sec. 28.  NEW SECTION.  68A.826  Civil actions.
   101.  A citizen of this state who believes a candidate has
11violated this subchapter may pursue a civil action in a court
12of relevant jurisdiction, provided that both of the following
13are true:
   14a.  The citizen has previously filed a complaint with the
15board regarding the same alleged violation.
   16b.  The board has failed to make a determination within
17thirty days of the filing of the complaint.
   182.  A complainant who prevails in a civil action charging
19a violation of this subchapter shall be entitled to receive
20reasonable attorney fees and court costs from the defendant.
   213.  If a court in which a civil action has been filed under
22subsection 1 finds that the complaint in that action was
23made frivolously or without cause, the court may require the
24complainant to pay the costs of the board, the court, and the
25defendant parties.
26   Sec. 29.  NEW SECTION.  68A.827  Board reports.
   271.  The board shall report to the general assembly after each
28election cycle.
   292.  The report shall include a detailed summary of all
30seed money contributions, qualifying contributions, and clean
31election campaign funding benefits received, and expenditures
32made, by all participating candidates. The report shall also
33include a summary and evaluation of the board’s activities and
34recommendations relating to the implementation, administration,
35and enforcement of this subchapter.
-22-
1   Sec. 30.  NEW SECTION.  68A.828  Repayments of excess
2expenditures.
   31.  If a participating candidate spends or obligates to spend
4more than the clean election campaign funding the candidate
5receives, and if such is determined not to be an amount that
6had or could have been expected to have a significant impact
7on the outcome of the election, the candidate shall personally
8repay to the voter-owned Iowa clean elections fund an amount
9equal to the excess.
   102.  If a participating candidate spends or obligates to spend
11more than the clean election campaign funding the candidate
12receives, and if such is determined to be an amount that had or
13could have been expected to have a significant impact on the
14outcome of the election, the candidate shall personally repay
15to the voter-owned Iowa clean elections fund an amount equal to
16five times the value of the excess.
17   Sec. 31.  NEW SECTION.  68A.829  Penalties.
   181.  A candidate shall not knowingly accept more benefits than
19those to which the candidate is entitled, spend more than the
20amount of clean election campaign funding received, or misuse
21such clean election campaign funding benefits or clean election
22campaign funding.
   232.  If a violation of subsection 1 was intentional and
24involved an amount that had or could have been expected to
25have a significant impact on the outcome of the election, the
26candidate commits an aggravated misdemeanor.
   273.  If it is determined that the violation of subsection
281 was intentional and involved an amount that had or could
29have been expected to have a significant impact on the
30outcome of the election, and if, in the judgment of the
31board, the violation is believed to have contributed to the
32violator winning the election, the board may recommend to
33the appropriate authority that proceedings be commenced to
34remove the violator from office or to impeach the violator if
35applicable.
-23-
   14.  A person shall not provide false information to the board
2or conceal or withhold information from the board. A violation
3of this subsection is an aggravated misdemeanor.
4   Sec. 32.  NEW SECTION.  68A.830  Local provision.
   5Each city council, school board, and county board of
6supervisors shall have the authority to adopt and fund a
7voter-owned Iowa clean elections fund, consistent with this
8subchapter, for local government elections.
9   Sec. 33.  Section 422.7, Code 2017, is amended by adding the
10following new subsection:
11   NEW SUBSECTION.  59.  Subtract, to the extent not otherwise
12excluded, up to two hundred dollars of the amount contributed
13to the voter-owned Iowa clean elections fund pursuant to
14section 68A.824, subsection 6.
15   Sec. 34.  Section 422.12E, subsection 1, Code 2017, is
16amended to read as follows:
   171.  For tax years beginning on or after January 1, 2019,
18there shall be allowed no more than four income tax return
19checkoffs on each income tax return. For tax years beginning
20on or after January 1, 2017, when the same four income tax
21return checkoffs have been provided on the income tax return
22for two consecutive years, the two checkoffs for which the
23least amount has been contributed, in the aggregate for the
24first tax year and through March 15 of the second tax year, are
25repealed. This section does not apply to the income tax return
26checkoff checkoffs provided in section sections 68A.601 and
2768A.610
.
28   Sec. 35.  NEW SECTION.  422.12I  Income tax checkoff for
29voter-owned Iowa clean elections fund.
   30A person who files an individual or a joint income tax
31return with the department of revenue under section 422.13
32may designate a contribution to the voter-owned Iowa clean
33elections fund authorized pursuant to section 68A.610.
34   Sec. 36.  Section 556.18, subsection 2, Code 2017, is amended
35by adding the following new paragraph:
-24-1   NEW PARAGRAPH.  e.  Ten million dollars to be deposited
2in the voter-owned Iowa clean elections fund established in
3section 68A.823.
4   Sec. 37.  Section 556.18, subsection 3, Code 2017, is amended
5to read as follows:
   63.  The treasurer of state shall annually credit all moneys
7received under section 556.4 to the general fund of the state.
8Moneys credited to the general fund of the state pursuant to
9this subsection are subject to the requirements of subsections
101 and 2 and section 8.60. However, if the amount collected
11under subsection 2, paragraph “e”, does not equal ten million
12dollars, the treasurer of state shall annually pay over an
13amount received under section 556.4 as necessary to bring the
14amount deposited in the voter-owned Iowa clean elections fund
15to ten million dollars.

16   Sec. 38.  SEVERABILITY.  The provisions of this Act are
17severable as provided in section 4.12.
18   Sec. 39.  IMPLEMENTATION OF ACT.  Section 25B.2, subsection
193, shall not apply to this Act.
20   Sec. 40.  EFFECTIVE DATES.
   211.  Except as provided in subsection 2, this Act takes effect
22November 4, 2020.
   232.  The following provision or provisions of this Act take
24effect January 1, 2018:
   25a.  The section of this Act enacting section 68A.610.
   26b.  The section of this Act enacting section 422.12I.
   27c.  The section of this Act amending section 422.7.
   28d.  The section of this Act amending section 556.18.
29EXPLANATION
30The inclusion of this explanation does not constitute agreement with
31the explanation’s substance by the members of the general assembly.
   32This bill amends Code chapter 68A, relating to campaign
33finance law, by creating a voluntary mechanism for publicly
34financed elections and establishing contribution limits for
35candidates who do not participate in the public financing
-25-1process.
   2The bill enacts a process for public financing for statewide
3and legislative elections and enacts new Code section 68A.801,
4providing definitions for key terms related to this process.
   5New Code section 68A.823 establishes a separate,
6nonreverting fund in the state treasury to be known as the
7voter-owned Iowa clean elections (VOICE) fund, and new Code
8section 68A.824 provides sources of revenue for the fund.
   9New Code sections 68A.802 and 68A.803 specify the
10eligibility procedures for both party and independent
11candidates to become participating candidates and specify
12the number of and details for collection of qualifying
13contributions.
   14New Code section 68A.805 provides that any candidate who
15accepts benefits during the primary election campaign period
16must continue to comply with the requirements of the public
17financing process, even if the candidate stops accepting
18benefits of the program at any point during the primary or
19general election campaign periods.
   20New Code section 68A.806 prohibits a participating candidate
21from accepting private funding during the primary and general
22election campaign periods other than certain permitted party
23funding. Contributions in the name of another person are
24prohibited and subject to payment to the board as are any
25applicable penalties. The use of personal funds for seed money
26or as qualifying contributions is limited by new Code section
2768A.809.
   28New Code section 68A.807 establishes contribution limits for
29those candidates who choose not to participate in the public
30financing process.
   31New Code section 68A.808 limits political party
32contributions and expenditures on behalf of participating
33candidates.
   34New Code section 68A.810 details the collection of private
35contributions for use as seed money, limited by new Code
-26-1section 68A.809 to a $100 contribution per individual person
2at least 18 years of age, and also limited in the aggregate in
3differing amounts for candidates for governor and lieutenant
4governor, for other statewide candidates, for Iowa senate
5candidates, and for Iowa house of representatives candidates.
6Seed money expenditures are limited to the clean election
7campaign qualifying period and seed money contributions and
8expenditures must be fully disclosed at the end of the public
9financing qualifying period.
   10New Code section 68A.812 provides for a certification
11process after a candidate applies for public financing campaign
12funding benefits and requires repayment of funds if eligibility
13is revoked. The bill provides for audit and judicial review of
14certification decisions made by the board.
   15New Code section 68A.813 provides certain benefits and
16obligations for participating candidates, including specified
17amounts of public funding pursuant to new Code section
1868A.815, mandatory participation in debates pursuant to new
19Code sections 68A.811 and 68A.822, and, pursuant to new Code
20section 68A.817, additional limited public funding to respond
21to certain excess expenditures by nonparticipating candidates,
22independent expenditures, and electioneering communications
23expenditures.
   24New Code section 68A.814 provides for a schedule of payments
25to participating candidates, and new Code section 68A.815
26specifies differing total amounts for primary and general
27elections for candidates for governor and lieutenant governor,
28for other statewide candidates, for Iowa senate candidates,
29and for Iowa house of representatives candidates. Alternate
30amounts are provided for uncontested races. Pursuant to new
31Code section 68A.816, clean election campaign funding payments
32must be used only for campaign-related expenses, and cannot be
33used for payments in violation of law or to repay personal or
34business loans, expenditures, or debts.
   35New Code section 68A.817 provides that nonparticipating
-27-1candidates must disclose within 48 hours every expenditure
2in excess of the public financing funding allocated to the
3candidate’s participating opponent that in the aggregate is
4more than $1,000. Certain other reporting requirements apply
5during the last 20 days of a campaign.
   6All candidates must include a statement with all
7advertisements indicating that the candidate has approved of
8the contents of the advertisement, pursuant to new Code section
968A.818.
   10New Code section 68A.819 provides that persons making
11certain independent expenditures must report such expenditures
12to the board, along with an affidavit affirming that the
13expenditure has not been coordinated with the candidate or
14party. Alleged violations of the coordination affirmation are
15subject to an expedited hearing procedure.
   16Persons making certain electioneering communications must
17also report to the board, pursuant to new Code section 68A.820.
   18New Code section 68A.821 provides that the board shall
19administer a voter information program, including establishment
20of an advisory council, to provide voters with election-related
21information, including a voter guide with candidate
22biographical material, policy statements, voting records, and
23whether the candidate funds the campaign with public or private
24money.
   25New Code section 68A.825 provides the board with certain
26specific enforcement powers and duties in relation to the
27new subchapter, and new Code section 68A.827 provides for an
28election cycle report by the board to the general assembly on
29the public financing process.
   30New Code section 68A.826 creates a civil right of action for
31citizens alleging that a candidate has violated the law.
   32Violations of the public financing process are subject
33to aggravated misdemeanor penalties, pursuant to new Code
34section 68A.829. An aggravated misdemeanor is punishable
35by confinement for no more than two years and a fine of at
-28-1least $625 but not more than $6,250. New Code section 68A.828
2provides for repayment of certain excess expenditures by the
3candidate.
   4New Code sections 68A.610 and 422.12I create an income tax
5checkoff for the voter-owned Iowa clean elections fund. This
6checkoff allows a person to direct that $5 of that person’s
7state income tax liability be paid over to the Iowa voter-owned
8clean elections fund.
   9Code section 422.7, new subsection 59, is enacted to
10provide up to a $200 exemption from income for purposes of the
11individual income tax for contributions to the Iowa voter-owned
12clean elections fund.
   13Code section 556.18 is amended to provide that $10 million
14shall be annually transferred from the proceeds from the sale
15by the state of lost or unclaimed property to the voter-owned
16Iowa clean elections fund.
   17The sections of the bill enacting the income tax checkoff,
18the exemption from the individual income tax, and the transfer
19in Code section 556.18 take effect January 1, 2018. The
20remainder of the bill takes effect November 4, 2020, which
21is the day after the 2020 general election day, to allow the
22public financing process to commence with a new campaign cycle.
23New Code section 68A.804 provides guidelines for disposition of
24money collected by candidates prior to the effective date of
25the public financing process.
   26The bill may include a state mandate as defined in Code
27section 25B.3. The bill makes inapplicable Code section 25B.2,
28subsection 3, which would relieve a political subdivision from
29complying with a state mandate if funding for the cost of
30the state mandate is not provided or specified. Therefore,
31political subdivisions are required to comply with any state
32mandate included in the bill.
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