Text: HSB534            Text: HSB536


House Study Bill 535

SENATE/HOUSE FILE BY (PROPOSED ETHICS AND CAMPAIGN DISCLOSURE BOARD BILL) Passed Senate, Date Passed House, Date Vote: Ayes Nays Vote: Ayes Nays Approved A BILL FOR 1 An Act relating to campaign funding and reporting. 2 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 3 TLSB 5370DP 81 4 jr/sh/8 PAG LIN 1 1 Section 1. Section 68A.102, subsection 10, paragraph b, 1 2 Code Supplement 2005, is amended to read as follows: 1 3 b. The payment, by any person other than a candidate or 1 4 political committee, of compensation for the personal services 1 5 of another person which are rendered to a candidate or 1 6 political committee for any such purpose. 1 7 "Contribution" shall not include services provided without 1 8 compensation by individuals volunteering their time on behalf 1 9 of a candidate's committee or political committee or a state 1 10 or county statutory political committee except when organized 1 11 or provided on a collective basis by a business, trade 1 12 association, labor union, or any other organized group or 1 13 association. "Contribution" shall not include refreshments 1 14 served at a campaign function so long as such refreshments do 1 15 not exceed fifty dollars in value or transportation provided 1 16 to a candidate so long as its value computed at a rate of 1 17 twenty cents per mile does not exceed one hundred dollars in 1 18 value in any one reporting period the current rate of 1 19 reimbursement allowed under the standard mileage rate method 1 20 for computation of business expenses pursuant to the Internal 1 21 Revenue Code does not exceed one hundred dollars in any one 1 22 reporting period. "Contribution" shall not include something 1 23 provided to a candidate for the candidate's personal 1 24 consumption or use and not intended for or on behalf of the 1 25 candidate's committee. 1 26 Sec. 2. Section 68A.201, subsection 1, Code 2005, is 1 27 amended to read as follows: 1 28 1. Every committee, as defined in this chapter, shall file 1 29 a statement of organization within ten days from the date of 1 30 its organization. Unless formal organization has previously 1 31 occurred, a committee is deemed to have organized as of the 1 32 date that committee transactions exceed the financial activity 1 33 threshold established in section 68A.102, subsection 5 or 18. 1 34 If a committee's transactions exceed the financial activity 1 35 threshold prior to the due date for filing a disclosure report 2 1 as established under section 68A.402, the committee shall file 2 2 a disclosure report regardless of whether or not a statement 2 3 of organization has been filed by the committee. 2 4 Sec. 3. Section 68A.201, subsection 5, Code 2005, is 2 5 amended to read as follows: 2 6 5. a. When either a committee or organization not 2 7 organized as a committee under this section makes a 2 8 contribution to a committee organized in Iowa, that committee 2 9 or organization shall disclose each contribution in excess of 2 10 fifty dollars to the board. 2 11 b. A committee or organization not organized as a 2 12 committee under this section which that is not registered and 2 13 filing full disclosure reports of all financial activities 2 14 with the federal election commission or another state's 2 15 disclosure commission shall register and file full disclosure 2 16 reports with the board pursuant to this chapter, and. The 2 17 committee or organization shall either appoint an eligible 2 18 Iowa elector as committee or organization treasurer, or shall 2 19 maintain all committee funds in an account in a financial 2 20 institution located in Iowa. 2 21 c. A committee which that is currently filing a disclosure 2 22 report in another jurisdiction shall either file a statement 2 23 of organization under subsections 1 and 2 and file disclosure 2 24 reports, the same as those required of committees organized 2 25 only in Iowa, under section 68A.402, or shall file one copy of 2 26 a verified statement with the board and a second copy with the 2 27 treasurer of the committee receiving the contribution. The 2 28 form shall be completed and filed at the time the contribution 2 29 is made. 2 30 d. The verified statement shall be on forms prescribed by 2 31 the board and shall attest that the committee is filing 2 32 reports with the federal election commission or in a 2 33 jurisdiction with reporting requirements which are 2 34 substantially similar to those of this chapter, and that the 2 35 contribution is made from an account which that does not 3 1 accept contributions which that would be in violation of 3 2 section 68A.503. 3 3 e. The verified statement form shall include the complete 3 4 name, address, and telephone number of the contributing 3 5 committee, the state or federal jurisdiction under which it is 3 6 registered or operates, the identification of any parent 3 7 entity or other affiliates or sponsors, its purpose, the name 3 8 and address of an Iowa resident authorized to receive service 3 9 of original notice, and the name and address of the receiving 3 10 committee, the amount of the cash or in=kind contribution, and 3 11 the date the contribution was made. 3 12 Sec. 4. Section 68A.203, subsection 2, Code Supplement 3 13 2005, is amended to read as follows: 3 14 2. a. An individual who receives contributions for a 3 15 committee without the prior authorization of the chairperson 3 16 of the committee or the candidate shall be responsible for 3 17 either rendering the contributions to the treasurer within 3 18 fifteen days of the date of receipt of the contributions, or 3 19 depositing the contributions in the account maintained by the 3 20 committee within seven days of the date of receipt of the 3 21 contributions. 3 22 b. A person, other than a candidate or committee officer, 3 23 who receives contributions for a committee shall, not later 3 24 than fifteen days from the date of receipt of the 3 25 contributions or on demand of the treasurer, render to the 3 26 treasurer the contributions and an account of the total of all 3 27 contributions, including the name and address of each person 3 28 making a contribution in excess of ten dollars, the amount of 3 29 the contributions, and the date on which the contributions 3 30 were received. 3 31 c. The treasurer shall deposit all contributions within 3 32 seven days of receipt by the treasurer in an account 3 33 maintained by the committee. 3 34 d. All funds of a committee shall be segregated from any 3 35 other funds held by officers, members, or associates of the 4 1 committee or the committee's candidate. However, if a 4 2 candidate's committee receives contributions only from the 4 3 candidate, or if a permanent organization temporarily engages 4 4 in activity which that qualifies it as a political committee 4 5 and all expenditures of the organization are made from 4 6 existing general operating funds and funds are not solicited 4 7 or received for this purpose from sources other than operating 4 8 funds, then that committee is not required to maintain a 4 9 separate account in a financial institution. 4 10 e. Committee funds or committee property shall not be used 4 11 for the personal benefit of an a candidate, officer, member, 4 12 or associate of the committee. The funds of a committee are 4 13 not attachable for the personal debt of the committee's 4 14 candidate or an officer, member, or associate of the 4 15 committee. 4 16 Sec. 5. Section 68A.401, subsection 3, Code 2005, is 4 17 amended by striking the subsection. 4 18 Sec. 6. Section 68A.402, subsection 8, Code Supplement 4 19 2005, is amended to read as follows: 4 20 8. POLITICAL COMMITTEES == BALLOT ISSUES. A political 4 21 committee expressly advocating the passage or defeat of a 4 22 ballot issue shall file reports as follows: 4 23 a. ELECTION YEAR. Five days before the election covering 4 24 the period of the date of initial activity through ten days 4 25 before election. Another report covering the time period from 4 26 nine days before the election through December 31 shall be 4 27 filed on or before January 19 of the next calendar year. 4 28 b. NONELECTION YEAR. On January 19 of the next calendar 4 29 year that covers the time period of nine days before the 4 30 election January 1 through December 31 of the previous 4 31 calendar year. 4 32 Sec. 7. Section 68A.406, subsection 2, paragraph a, Code 4 33 Supplement 2005, is amended to read as follows: 4 34 a. Any property owned by the state or the governing body 4 35 of a county, city, or other political subdivision of the 5 1 state, including all property considered the public right=of= 5 2 way. Upon a determination by the board that a sign has been 5 3 improperly placed, the sign shall be removed by highway 5 4 authorities as provided in section 319.13, or by county or 5 5 city law enforcement authorities in a manner consistent with 5 6 section 319.13. If the board determines a campaign sign is 5 7 improperly placed, the board shall notify the person who paid 5 8 for or placed the sign and the person shall remove the sign. 5 9 If the person fails to do so, the board may notify the proper 5 10 state, county, or city law enforcement authorities to have the 5 11 sign removed at cost to the person. The board may sanction 5 12 any person for failing to remove an improperly placed campaign 5 13 sign. 5 14 Sec. 8. Section 68A.501, Code 2005, is amended to read as 5 15 follows: 5 16 68A.501 FUNDS FROM UNKNOWN SOURCE == ESCHEAT. 5 17 The expenditure of funds from an unknown or unidentifiable 5 18 source received by a candidate or committee is prohibited. 5 19 Such funds received by a candidate or committee shall escheat 5 20 to the state. Any candidate or committee receiving such 5 21 contributions shall remit such contributions to the director 5 22 of the department of administrative services board who shall 5 23 forward such contributions to the proper agency for deposit in 5 24 the general fund of the state. Persons requested to make a 5 25 contribution at a fundraising event shall be advised that it 5 26 is illegal to make a contribution in excess of ten dollars 5 27 unless the person making the contribution also provides the 5 28 person's name and address. 5 29 EXPLANATION 5 30 This bill makes a number of revisions to Iowa's campaign 5 31 disclosure income tax checkoff Act. 5 32 Code section 68A.102 contains a definition of the term 5 33 "contribution". Under current law the provision of 5 34 transportation to a candidate is not defined as a contribution 5 35 as long as the value is not more than $100, calculated at 20 6 1 cents per mile; the bill ties the per mile rate to that 6 2 specified in the internal revenue code for business expenses. 6 3 Code section 68A.201 requires the filing of a statement of 6 4 organization by a committee. The bill requires a committee to 6 5 file a disclosure report, even if it has not previously filed 6 6 a statement of organization, when the committee's financial 6 7 activity reaches the level where a disclosure statement is 6 8 required. 6 9 Code sections 68A.201 and 68A.203 are amended editorially 6 10 and structurally. The latter revisions also exempt a 6 11 candidate or a committee officer from the requirement that a 6 12 person who receives contributions on behalf of a committee 6 13 provide an accounting of all contributions within 15 days of 6 14 either receipt of the contribution or demand of the treasurer. 6 15 Current provisions provide that committee funds or property 6 16 may not be used to the personal benefit of the committee 6 17 members or associates of members. The bill includes the 6 18 candidate in this prohibition. 6 19 The bill strikes Code section 68A.401, subsection 3. That 6 20 subsection requires that the county commissioner of elections 6 21 retain statements and reports provided by the ethics and 6 22 campaign disclosure board for a county, city, school, or other 6 23 political subdivision for a specified period. 6 24 Code section 68A.402 relates to reports by a political 6 25 committee expressly advocating the passage or defeat of a 6 26 ballot issue. The bill requires that a report covering the 6 27 time period from nine days before the election through 6 28 December 31 must be filed on or before January 19 of the next 6 29 calendar year. 6 30 Code section 68A.406 is amended to require that the person 6 31 who either paid for or placed a campaign sign be responsible 6 32 for moving the sign if it is improperly placed. Current law 6 33 places this burden on highway officials. 6 34 Code section 68A.501 relates to the receipt of 6 35 contributions from an unknown source. The bill's revision 7 1 requires those contributions to be remitted to the board; 7 2 current provisions require those contributions to be remitted 7 3 to the department of administrative services. 7 4 LSB 5370DP 81 7 5 jr:rj/sh/8.1
Text: HSB534            Text: HSB536