House File 242 - IntroducedA Bill ForAn Act 1relating to the individual income tax checkoff for the
2Iowa election campaign fund by providing for the future
3repeal of the tax checkoff and the Iowa election campaign
4fund, and including effective date provisions.
5BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1DIVISION I
2IOWA ELECTION CAMPAIGN FUND TAX CHECKOFF
3   Section 1.  Section 68A.601, Code 2017, is amended to read
4as follows:
   568A.601  Checkoff — income tax.
   6A For tax years beginning before January 1, 2017, a person
7whose state income tax liability for any taxable year is one
8dollar and fifty cents or more may direct that one dollar and
9fifty cents of that liability be paid over to the Iowa election
10campaign fund when submitting the person’s state income tax
11return to the department of revenue. In the case of a joint
12return of husband and wife having a state income tax liability
13of three dollars or more, each spouse may direct that one
14dollar and fifty cents be paid to the fund. The For tax years
15beginning before January 1, 2017, the
director of revenue shall
16draft the income tax form to provide spaces on the tax return
17which the taxpayer may use to designate that contributions made
18under this section be credited to a specified political party
19as defined by section 43.2, or to the Iowa election campaign
20fund as a contribution to be shared by all such political
21parties in the manner prescribed by section 68A.602. The form
22shall inform the taxpayer of the consequences of the choices
23provided under this section, but this information may be
24contained in a footnote or other suitable form if the director
25of revenue finds it is not feasible to place the information
26immediately above the signature line. The action taken by a
27person for the checkoff is irrevocable.
28   Sec. 2.  Section 422.12J, Code 2017, is amended to read as
29follows:
   30422.12J  Income tax checkoff for Iowa election campaign fund.
   31A For tax years beginning before January 1, 2017, a person
32who files an individual or a joint income tax return with
33the department of revenue under section 422.13 may designate
34a contribution to the Iowa election campaign fund authorized
35pursuant to section 68A.601.
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1DIVISION II
2FUTURE REPEAL of iowa election campaign fund tax checkoff
3   Sec. 3.  Section 68A.103, subsection 2, Code 2017, is amended
4by striking the subsection.
5   Sec. 4.  Section 97B.3, subsection 2, Code 2017, is amended
6to read as follows:
   72.  The qualifications for appointment as the chief
8executive officer shall include management-level pension
9fund administration experience. The qualifications for
10appointment as the chief executive officer shall also
11include a demonstrated knowledge of all aspects of pension
12fund administration, including financial management,
13investment asset management, benefit design and delivery,
14legal administration, and operations administration. The
15chief executive officer shall not be selected on the basis
16of political affiliation, and while employed as the chief
17executive officer, shall not be a member of a political
18committee, participate in a political campaign, or be a
19candidate for a partisan elective office, and shall not
20contribute to a political campaign fund, except that the chief
21executive officer may designate on the checkoff portion of the
22state or federal income tax return, or both, a party or parties
23to which a contribution is made pursuant to the checkoff. The
24chief executive officer shall not hold any other office under
25the laws of the United States or of this or any state and shall
26devote full time to the duties of office.
27   Sec. 5.  Section 422.12D, subsection 2, Code 2017, is amended
28to read as follows:
   292.  The director of revenue shall draft the income tax form
30to allow the designation of contributions to the foundation
31fund on the tax return. The department, on or before January
3231, shall transfer the total amount designated on the tax
33form due in the preceding year to the foundation fund.
34However, before a checkoff pursuant to this section shall be
35permitted, all liabilities on the books of the department of
-2-1administrative services and accounts identified as owing under
2section 8A.504 and the political contribution allowed under
3section 68A.601
shall be satisfied.
4   Sec. 6.  Section 422.12E, subsection 1, Code 2017, is amended
5to read as follows:
   61.  For tax years beginning on or after January 1, 2019,
7there shall be allowed no more than four income tax return
8checkoffs on each income tax return. For tax years beginning
9on or after January 1, 2017, when the same four income tax
10return checkoffs have been provided on the income tax return
11for two consecutive years, the two checkoffs for which the
12least amount has been contributed, in the aggregate for the
13first tax year and through March 15 of the second tax year, are
14repealed. This section does not apply to the income tax return
15checkoff provided in section 68A.601.

16   Sec. 7.  Section 422.12K, subsection 2, Code 2017, is amended
17to read as follows:
   182.  The director of revenue shall draft the income tax form
19to allow the designation of contributions to the child abuse
20prevention program fund on the tax return. The department of
21revenue, on or before January 31, shall transfer the total
22amount designated on the tax return forms due in the preceding
23calendar year to the child abuse prevention program fund.
24However, before a checkoff pursuant to this section shall be
25permitted, all liabilities on the books of the department of
26administrative services and accounts identified as owing under
27section 8A.504 and the political contribution allowed under
28section 68A.601
shall be satisfied.
29   Sec. 8.  Section 422.12L, subsection 2, Code 2017, is amended
30to read as follows:
   312.  The director of revenue shall draft the income tax form
32to allow the designation of contributions to the veterans trust
33fund and to the volunteer fire fighter preparedness fund as
34one checkoff on the tax return. The department of revenue,
35on or before January 31, shall transfer one-half of the total
-3-1amount designated on the tax return forms due in the preceding
2calendar year to the veterans trust fund and the remaining
3one-half to the volunteer fire fighter preparedness fund.
4However, before a checkoff pursuant to this section shall be
5permitted, all liabilities on the books of the department of
6administrative services and accounts identified as owing under
7section 8A.504 and the political contribution allowed under
8section 68A.601
shall be satisfied.
9   Sec. 9.  Section 456A.16, subsection 7, Code 2017, is amended
10to read as follows:
   117.  The department shall adopt rules pursuant to chapter 17A
12to implement this section. However, before a checkoff pursuant
13to this section shall be permitted, all liabilities on the
14books of the department of administrative services and accounts
15identified as owing under section 8A.504 and the political
16contribution allowed under section 68A.601
shall be satisfied.
17   Sec. 10.  Section 474.10, Code 2017, is amended to read as
18follows:
   19474.10  General counsel.
   20The board shall employ a competent attorney to serve as its
21general counsel, and assistants to the general counsel as it
22finds necessary for the full and efficient discharge of its
23duties. The general counsel is the attorney for, and legal
24advisor of, the board and is exempt from the merit system
25provisions of chapter 8A, subchapter IV. Assistants to the
26general counsel are subject to the merit system provisions of
27chapter 8A, subchapter IV. The general counsel or an assistant
28to the general counsel shall provide the necessary legal advice
29to the board in all matters and represent the board in all
30actions instituted in a state or federal court challenging
31the validity of a rule or order of the board. The existence
32of a fact which disqualifies a person from election or from
33acting as a utilities board member disqualifies the person from
34employment as general counsel or assistant general counsel.
35The general counsel shall devote full time to the duties of the
-4-1office. During employment the counsel shall not be a member of
2a political committee, contribute to a political campaign fund
3other than through the income tax checkoff for contributions to
4the Iowa election campaign fund and the presidential election
5campaign fund, participate in a political campaign, or be a
6candidate for a political office.
7   Sec. 11.  Section 475A.1, subsection 4, Code 2017, is amended
8to read as follows:
   94.  Political activity prohibited.  The consumer advocate
10shall devote the advocate’s entire time to the duties of the
11office; and during. During the advocate’s term of office the
12advocate shall not be a member of a political committee or
13contribute to a political campaign fund other than through the
14income tax checkoff for contributions to the Iowa election
15campaign fund and
the presidential election campaign fund
16or take part in political campaigns or be a candidate for a
17political office.
18   Sec. 12.  Section 904.107, Code 2017, is amended to read as
19follows:
   20904.107  Director — appointment and qualifications.
   21The chief administrative officer for the department is the
22director. The director shall be appointed by the governor
23subject to confirmation by the senate and shall serve at the
24pleasure of the governor. The director shall be qualified
25in reformatory and prison management, knowledgeable in
26community-based corrections, and shall possess administrative
27ability. The director shall also have experience in the field
28of criminology and discipline and in the supervision of inmates
29in corrective penal institutions. The director shall not be
30selected on the basis of political affiliation, and while
31employed as the director, shall not be a member of a political
32committee, participate in a political campaign, be a candidate
33for a partisan elective office, and shall not contribute to a
34political campaign fund, except that the director may designate
35on the checkoff portion of the state or federal income tax
-5-1return, or both, a party or parties to which a contribution is
2made pursuant to the checkoff. The director shall not hold any
3other office under the laws of the United States or of this or
4any state or hold any position for profit and shall devote full
5time to the duties of office.
6   Sec. 13.  REPEAL.  Sections 68A.601, 68A.602, 68A.603,
768A.604, 68A.605, 68A.606, 68A.607, 68A.608, 68A.609, and
8422.12J, Code 2017, are repealed.
9   Sec. 14.  EFFECTIVE DATE.  This division of this Act takes
10effect July 1, 2018.
11EXPLANATION
12The inclusion of this explanation does not constitute agreement with
13the explanation’s substance by the members of the general assembly.
   14This bill relates to the Iowa election campaign income tax
15checkoff and the Iowa election campaign fund.
   16Under current law, the Iowa election campaign income tax
17checkoff allows individuals to designate on their income tax
18return up to $1.50 of their state tax liability to the Iowa
19election campaign fund. The checkoff is not subject to the
20provisions of Code section 422.12E.
   21Moneys in the Iowa election campaign fund, consisting of
22a separate fund for each political party, are disbursed to
23candidates for partisan public office at the request of the
24candidate and at the discretion of the state central committee
25of each political party. The Iowa ethics and campaign
26disclosure board is responsible for administering the Iowa
27election campaign fund. Any moneys not used by the political
28parties by the end of a general election year revert to the
29general fund of the state.
   30Division I of the bill restricts the Iowa election campaign
31income tax checkoff to tax years beginning before January 1,
322017. The checkoff will not be available on the individual
33income tax return for tax year 2017, nor any tax year
34thereafter.
   35Division II of the bill provides that the Iowa election
-6-1campaign income tax checkoff and the Iowa election campaign
2fund are repealed effective July 1, 2018.
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mm/sc