Senate Study Bill 1066 - IntroducedA Bill ForAn Act 1relating to the Iowa election campaign fund individual
2income tax checkoff by providing for the repeal of the
3tax checkoff and the future repeal of the Iowa election
4campaign fund, and including effective date and retroactive
5applicability provisions.
6BE 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, 2016, 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, 2016, 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
27a person for the checkoff is irrevocable. For tax years
28beginning on or after January 1, 2016, any designation by a
29taxpayer to contribute to the Iowa election campaign fund shall
30be invalid, even if the income tax form provides space to make
31such a designation.

32   Sec. 2.  Section 422.12J, Code 2017, is amended to read as
33follows:
   34422.12J  Income tax checkoff for Iowa election campaign fund.
   35A For tax years beginning before January 1, 2016, a person
-1-1who files an individual or a joint income tax return with
2the department of revenue under section 422.13 may designate
3a contribution to the Iowa election campaign fund authorized
4pursuant to section 68A.601. For tax years beginning on
5or after January 1, 2016, any designation by a taxpayer to
6contribute to the Iowa election campaign fund shall be invalid,
7even if the income tax form provides space to make such a
8designation.

9   Sec. 3.  EFFECTIVE UPON ENACTMENT.  This division of this
10Act, being deemed of immediate importance, takes effect upon
11enactment.
12   Sec. 4.  RETROACTIVE APPLICABILITY.  This division of this
13Act applies retroactively to January 1, 2016, for tax years
14beginning on or after that date.
15DIVISION II
16FUTURE REPEAL of iowa election campaign fund tax checkoff
17   Sec. 5.  Section 68A.103, subsection 2, Code 2017, is amended
18by striking the subsection.
19   Sec. 6.  Section 97B.3, subsection 2, Code 2017, is amended
20to read as follows:
   212.  The qualifications for appointment as the chief
22executive officer shall include management-level pension
23fund administration experience. The qualifications for
24appointment as the chief executive officer shall also
25include a demonstrated knowledge of all aspects of pension
26fund administration, including financial management,
27investment asset management, benefit design and delivery,
28legal administration, and operations administration. The
29chief executive officer shall not be selected on the basis
30of political affiliation, and while employed as the chief
31executive officer, shall not be a member of a political
32committee, participate in a political campaign, or be a
33candidate for a partisan elective office, and shall not
34contribute to a political campaign fund, except that the chief
35executive officer may designate on the checkoff portion of the
-2-1state or federal income tax return, or both, a party or parties
2to which a contribution is made pursuant to the checkoff. The
3chief executive officer shall not hold any other office under
4the laws of the United States or of this or any state and shall
5devote full time to the duties of office.
6   Sec. 7.  Section 422.12D, subsection 2, Code 2017, is amended
7to read as follows:
   82.  The director of revenue shall draft the income tax form
9to allow the designation of contributions to the foundation
10fund on the tax return. The department, on or before January
1131, shall transfer the total amount designated on the tax
12form due in the preceding year to the foundation fund.
13However, before a checkoff pursuant to this section shall be
14permitted, all liabilities on the books of the department of
15administrative services and accounts identified as owing under
16section 8A.504 and the political contribution allowed under
17section 68A.601
shall be satisfied.
18   Sec. 8.  Section 422.12E, subsection 1, Code 2017, is amended
19to read as follows:
   201.  For tax years beginning on or after January 1, 2019,
21there shall be allowed no more than four income tax return
22checkoffs on each income tax return. For tax years beginning
23on or after January 1, 2017, when the same four income tax
24return checkoffs have been provided on the income tax return
25for two consecutive years, the two checkoffs for which the
26least amount has been contributed, in the aggregate for the
27first tax year and through March 15 of the second tax year, are
28repealed. This section does not apply to the income tax return
29checkoff provided in section 68A.601.

30   Sec. 9.  Section 422.12K, subsection 2, Code 2017, is amended
31to read as follows:
   322.  The director of revenue shall draft the income tax form
33to allow the designation of contributions to the child abuse
34prevention program fund on the tax return. The department of
35revenue, on or before January 31, shall transfer the total
-3-1amount designated on the tax return forms due in the preceding
2calendar year to the child abuse prevention program fund.
3However, before a checkoff pursuant to this section shall be
4permitted, all liabilities on the books of the department of
5administrative services and accounts identified as owing under
6section 8A.504 and the political contribution allowed under
7section 68A.601
shall be satisfied.
8   Sec. 10.  Section 422.12L, subsection 2, Code 2017, is
9amended to read as follows:
   102.  The director of revenue shall draft the income tax form
11to allow the designation of contributions to the veterans trust
12fund and to the volunteer fire fighter preparedness fund as
13one checkoff on the tax return. The department of revenue,
14on or before January 31, shall transfer one-half of the total
15amount designated on the tax return forms due in the preceding
16calendar year to the veterans trust fund and the remaining
17one-half to the volunteer fire fighter preparedness fund.
18However, before a checkoff pursuant to this section shall be
19permitted, all liabilities on the books of the department of
20administrative services and accounts identified as owing under
21section 8A.504 and the political contribution allowed under
22section 68A.601
shall be satisfied.
23   Sec. 11.  Section 456A.16, subsection 7, Code 2017, is
24amended to read as follows:
   257.  The department shall adopt rules pursuant to chapter 17A
26to implement this section. However, before a checkoff pursuant
27to this section shall be permitted, all liabilities on the
28books of the department of administrative services and accounts
29identified as owing under section 8A.504 and the political
30contribution allowed under section 68A.601
shall be satisfied.
31   Sec. 12.  Section 474.10, Code 2017, is amended to read as
32follows:
   33474.10  General counsel.
   34The board shall employ a competent attorney to serve as its
35general counsel, and assistants to the general counsel as it
-4-1finds necessary for the full and efficient discharge of its
2duties. The general counsel is the attorney for, and legal
3advisor of, the board and is exempt from the merit system
4provisions of chapter 8A, subchapter IV. Assistants to the
5general counsel are subject to the merit system provisions of
6chapter 8A, subchapter IV. The general counsel or an assistant
7to the general counsel shall provide the necessary legal advice
8to the board in all matters and represent the board in all
9actions instituted in a state or federal court challenging
10the validity of a rule or order of the board. The existence
11of a fact which disqualifies a person from election or from
12acting as a utilities board member disqualifies the person from
13employment as general counsel or assistant general counsel.
14The general counsel shall devote full time to the duties of the
15office. During employment the counsel shall not be a member of
16a political committee, contribute to a political campaign fund
17other than through the income tax checkoff for contributions to
18the Iowa election campaign fund and the presidential election
19campaign fund, participate in a political campaign, or be a
20candidate for a political office.
21   Sec. 13.  Section 475A.1, subsection 4, Code 2017, is amended
22to read as follows:
   234.  Political activity prohibited.  The consumer advocate
24shall devote the advocate’s entire time to the duties of the
25office; and during. During the advocate’s term of office the
26advocate shall not be a member of a political committee or
27contribute to a political campaign fund other than through the
28income tax checkoff for contributions to the Iowa election
29campaign fund and
the presidential election campaign fund
30or take part in political campaigns or be a candidate for a
31political office.
32   Sec. 14.  Section 904.107, Code 2017, is amended to read as
33follows:
   34904.107  Director — appointment and qualifications.
   35The chief administrative officer for the department is the
-5-1director. The director shall be appointed by the governor
2subject to confirmation by the senate and shall serve at the
3pleasure of the governor. The director shall be qualified
4in reformatory and prison management, knowledgeable in
5community-based corrections, and shall possess administrative
6ability. The director shall also have experience in the field
7of criminology and discipline and in the supervision of inmates
8in corrective penal institutions. The director shall not be
9selected on the basis of political affiliation, and while
10employed as the director, shall not be a member of a political
11committee, participate in a political campaign, be a candidate
12for a partisan elective office, and shall not contribute to a
13political campaign fund, except that the director may designate
14on the checkoff portion of the state or federal income tax
15return, or both, a party or parties to which a contribution is
16made pursuant to the checkoff. The director shall not hold any
17other office under the laws of the United States or of this or
18any state or hold any position for profit and shall devote full
19time to the duties of office.
20   Sec. 15.  REPEAL.  Sections 68A.601, 68A.602, 68A.603,
2168A.604, 68A.605, 68A.606, 68A.607, 68A.608, 68A.609, and
22422.12J, Code 2017, are repealed.
23   Sec. 16.  EFFECTIVE DATE.  This division of this Act takes
24effect July 1, 2018.
25EXPLANATION
26The inclusion of this explanation does not constitute agreement with
27the explanation’s substance by the members of the general assembly.
   28This bill relates to the Iowa election campaign income tax
29checkoff and the Iowa election campaign fund.
   30Under current law, the Iowa election campaign income tax
31checkoff allows individuals to designate on their income tax
32return up to $1.50 of their state tax liability to the Iowa
33election campaign fund. The checkoff is not subject to the
34provisions of Code section 422.12E.
   35Moneys in the Iowa election campaign fund, consisting of
-6-1a separate fund for each political party, are disbursed to
2candidates for partisan public office at the request of the
3candidate and at the discretion of the state central committee
4of each political party. The Iowa ethics and campaign
5disclosure board is responsible for administering the Iowa
6election campaign fund. Any moneys not used by the political
7parties by the end of a general election year revert to the
8general fund of the state.
   9Division I of the bill restricts the Iowa election
10campaign income tax checkoff to tax years beginning before
11January 1, 2016. The checkoff will not be available on the
12individual income tax return for tax year 2016, nor any tax
13year thereafter. The bill provides that any designation by a
14taxpayer to contribute to the Iowa election campaign fund for
15tax year 2016 or later is invalid, even if the income tax form
16provides space to make such a designation.
   17Division I takes effect upon enactment and applies
18retroactively to January 1, 2016, for tax years beginning on
19or after that date.
   20Division II of the bill provides that the Iowa election
21campaign income tax checkoff and the Iowa election campaign
22fund are repealed effective July 1, 2018.
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mm/sc/rj