House File 27 - Introduced




                                 HOUSE FILE       
                                 BY  HUNTER

                                      A BILL FOR

  1 An Act relating to campaign finance by establishing a
  2    voter=owned Iowa clean elections Act and fund, providing
  3    for funding from specified sources, including an income
  4    tax checkoff, providing an income tax exemption for
  5    contributions made to the fund, providing penalties, and
  6    including effective date provisions.
  7 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
    TLSB 1272YH (4) 86
    aw/sc

PAG LIN



  1  1    Section 1.  Section 68A.603, Code 2015, is amended to read
  1  2 as follows:
  1  3    68A.603  Rules promulgated.
  1  4    The ethics and campaign disclosure board shall administer
  1  5 the provisions of sections 68A.601 through 68A.609, 68A.602,
  1  6 and 68A.604 through 68A.610 and shall promulgate all necessary
  1  7 rules in accordance with chapter 17A.
  1  8    Sec. 2.  NEW SECTION.  68A.610  Checkoff ==== income tax ====
  1  9 voter=owned Iowa clean elections.
  1 10    A person whose state income tax liability for any taxable
  1 11 year is five dollars or more may direct that five dollars
  1 12 of that liability be paid over to the voter=owned Iowa
  1 13 clean elections fund, as established in section 68A.823,
  1 14 when submitting the person's state income tax return to the
  1 15 department of revenue.  In the case of a joint return of
  1 16 husband and wife having a state income tax liability of ten
  1 17 dollars or more, each spouse may direct that five dollars
  1 18 be paid to the fund.  The director of revenue shall provide
  1 19 space for the voter=owned Iowa clean elections fund income
  1 20 tax checkoff on the income tax form.  An explanation shall
  1 21 be included which clearly states that the checkoff does not
  1 22 constitute an additional tax liability.  The action taken by a
  1 23 person for the checkoff is irrevocable.
  1 24    Sec. 3.  NEW SECTION.  68A.801  Definitions.
  1 25    For the purposes of this subchapter, unless the context
  1 26 otherwise requires:
  1 27    1.  "Allowable contribution" means a qualifying contribution
  1 28 or a seed money contribution.
  1 29    2.  "Board" means the Iowa ethics and campaign disclosure
  1 30 board established under section 68B.32.
  1 31    3.  "Clean election campaign qualifying period" means the
  1 32 period during which candidates are permitted to collect
  1 33 qualifying contributions in order to qualify for clean election
  1 34 campaign funding.  The period begins ninety days before the
  1 35 beginning of the primary election campaign period and ends
  2  1 thirty days before the beginning of the primary election
  2  2 campaign period.
  2  3    4.  "Coordination" means a payment made for a communication
  2  4 or anything of value that is for the purpose of influencing the
  2  5 outcome of an election and that is made by a person according
  2  6 to at least one of the following:
  2  7    a.  In cooperation, consultation, or concert with, at
  2  8 the request or suggestion of, or pursuant to, a particular
  2  9 understanding with a candidate, a candidate's committee, or an
  2 10 agent acting on behalf of a candidate or candidate's committee.
  2 11    b.  For the dissemination, distribution, or republication,
  2 12 in whole or in part, of any broadcast or any written, graphic,
  2 13 or other form of campaign material prepared by a candidate,
  2 14 a candidate's committee, or an agent of a candidate or
  2 15 candidate's committee.
  2 16    c.  Based on specific information about the candidate's
  2 17 plans, projects, or needs provided to the person making the
  2 18 payment by the candidate or the candidate's agent who provides
  2 19 the information with a view toward having the payment made.
  2 20    d.  If in the same election cycle in which the payment is
  2 21 made, the person making the payment is serving or has served as
  2 22 a member, employee, fund=raiser, or agent of the candidate or
  2 23 candidate's committee in an executive or policymaking position.
  2 24    e.  If the person making the payment has served in any formal
  2 25 policy or advisory position with the candidate's campaign or
  2 26 has participated in strategic or policymaking discussions with
  2 27 the candidate's campaign relating to the candidate's pursuit of
  2 28 nomination for election, or election, to office, in the same
  2 29 election cycle as the election cycle in which the payment is
  2 30 made.
  2 31    f.  If the person making the payment retains the professional
  2 32 services of an individual or person who, in a nonministerial
  2 33 capacity, has provided or is providing campaign=related
  2 34 services in the same election cycle to a candidate who
  2 35 is pursuing the same nomination or election as any of the
  3  1 candidates to whom the communication refers.  For purposes
  3  2 of this section, "professional services" includes services in
  3  3 support of a candidate's pursuit of nomination for election or
  3  4 election to office such as polling, media advice, direct mail,
  3  5 fund=raising, or campaign research services.
  3  6    5.  "Electioneering communication" means any communication
  3  7 that refers to a clearly identified candidate for elected
  3  8 public office if the communication has the effect of
  3  9 encouraging or discouraging a vote for the candidate,
  3 10 regardless of whether the communication expressly advocates a
  3 11 vote for or against the candidate.
  3 12    6.  "Excess expenditure amount" means the amount of
  3 13 money spent or obligated to be spent by a nonparticipating
  3 14 candidate in excess of the clean money amount available to a
  3 15 participating candidate running for the same office.
  3 16    7.  "Express advocacy" means the same as defined in section
  3 17 68A.102.
  3 18    8.  "General election campaign period" means the period
  3 19 beginning the day after the primary election and ending on the
  3 20 day of the general election.
  3 21    9.  "Independent candidate" means a candidate who does not
  3 22 represent a political party as defined by section 43.2.
  3 23    10.  "Independent expenditure" means an expenditure made
  3 24 by a person or group of persons other than a candidate or
  3 25 candidate's committee that meets both of the following
  3 26 conditions:
  3 27    a.  The expenditure is made for a communication that contains
  3 28 express advocacy.
  3 29    b.  The expenditure is made without the participation or
  3 30 cooperation of and without coordination with a candidate or a
  3 31 candidate's committee.
  3 32    11.  "Nonparticipating candidate" means a candidate who is
  3 33 on the ballot but has chosen not to apply for clean election
  3 34 campaign funding or a candidate who is on the ballot and
  3 35 has applied for but has not satisfied the requirements for
  4  1 receiving clean election campaign funding.
  4  2    12.  "Participating candidate" means a candidate who
  4  3 qualifies for clean election campaign funding.  Such candidates
  4  4 are eligible to receive clean election campaign funding during
  4  5 primary or general election campaign periods.
  4  6    13.  "Party candidate" means a candidate who represents a
  4  7 political party as defined by section 43.2.
  4  8    14.  "Primary election campaign period" means the period
  4  9 beginning ninety days before the primary election and ending on
  4 10 the day of the primary election.
  4 11    15.  "Qualifying contribution" means a contribution of five
  4 12 dollars or more that is received during the designated clean
  4 13 election campaign qualifying period by a candidate seeking to
  4 14 become eligible for clean election campaign funding and that is
  4 15 acknowledged by a written receipt identifying the contributor.
  4 16 However, if the annual median household income of a legislative
  4 17 district is at or below one hundred percent of the most recent
  4 18 federal poverty guideline based on United States census bureau
  4 19 data, the qualifying contribution is one dollar.
  4 20    16.  "Seed money contribution" means a contribution of no
  4 21 more than one hundred dollars made by an individual person who
  4 22 is at least eighteen years of age during the seed money period,
  4 23 but specifically excludes all of the following:
  4 24    a.  Payments by a membership organization for the costs of
  4 25 communications to its members.
  4 26    b.  Payments by a membership organization for the purpose of
  4 27 facilitating the making of qualifying contributions.
  4 28    c.  The cash value of volunteer activity, including the
  4 29 payment of incidental expenses of volunteers.
  4 30    17.  "Seed money period" means the period beginning the
  4 31 day following the previous general election for that office
  4 32 and ending on the last day of the clean election campaign
  4 33 qualifying period.  The "seed money period" is the exploratory
  4 34 period during which candidates who wish to become eligible
  4 35 for clean election campaign funding for the next elections
  5  1 are permitted to raise and spend a limited amount of private
  5  2 seed money, from contributions of up to one hundred dollars
  5  3 per individual, for the purpose of determining whether to
  5  4 become a candidate and fulfilling the clean election campaign
  5  5 eligibility requirements.
  5  6    Sec. 4.  NEW SECTION.  68A.802  Eligibility for party
  5  7 candidates.
  5  8    1.  A party candidate qualifies as a participating candidate
  5  9 for the primary election campaign period if the candidate does
  5 10 both of the following:
  5 11    a.  The candidate files a declaration with the board that
  5 12 the candidate has complied and will comply with all of the
  5 13 requirements of this subchapter, including the requirement
  5 14 that during the seed money period and the clean election
  5 15 campaign qualifying period the candidate not accept or
  5 16 spend private contributions from any source other than seed
  5 17 money contributions and clean election campaign qualifying
  5 18 contributions, unless the provisions of section 68A.804 apply.
  5 19    b.  The candidate meets both of the following qualifying
  5 20 contribution requirements before the close of the clean
  5 21 election campaign qualifying period:
  5 22    (1)  A party candidate must collect both qualifying
  5 23 contributions and signatures as follows:
  5 24    (a)  For the office of governor, from five hundred eligible
  5 25 electors in each congressional district.
  5 26    (b)  For statewide office other than governor, from two
  5 27 hundred fifty eligible electors in each congressional district.
  5 28    (c)  For the Iowa senate, from two hundred eligible electors
  5 29 in the senate candidate's electoral district.
  5 30    (d)  For the Iowa house of representatives, from one hundred
  5 31 eligible electors in the house candidate's electoral district.
  5 32    (2)  Each qualifying contribution must meet all requirements
  5 33 of this section.
  5 34    2.  Contributors shall be eligible electors who reside
  5 35 within the candidate's electoral district and who are therefore
  6  1 eligible to vote for that candidate.
  6  2    3.  Qualifying contributions shall be:
  6  3    a.  Made in cash, check, money order, or credit or debit
  6  4 card.
  6  5    b.  Gathered by the candidate personally or by volunteers who
  6  6 do not receive compensation.
  6  7    c.  Acknowledged by a receipt to the contributor, with
  6  8 a copy to be kept by the candidate and a third copy to be
  6  9 submitted to the board.  The receipt shall include a signed
  6 10 statement that the contributor understands that the purpose of
  6 11 the contribution is to help the candidate qualify for clean
  6 12 election campaign funding and that the contribution is made
  6 13 without coercion or reimbursement.  The receipt shall include
  6 14 the contributor's signature, printed name, home address, and
  6 15 telephone number, and the name of the candidate on whose behalf
  6 16 the contribution is made.
  6 17    d.  Paid over to the board for deposit in the voter=owned
  6 18 Iowa clean elections fund established under section 68A.823,
  6 19 with the signed and completed receipt, according to a schedule
  6 20 and procedure to be determined by the board.  A contribution
  6 21 submitted as a qualifying contribution that does not include
  6 22 the signed and completed receipt shall not be counted as a
  6 23 qualifying contribution.
  6 24    4.  A party candidate qualifies as a participating candidate
  6 25 for the general election campaign period when the candidate
  6 26 does both of the following:
  6 27    a.  The candidate has met all of the applicable requirements
  6 28 of this subchapter and filed a declaration with the board
  6 29 that the candidate has fulfilled and will fulfill all of the
  6 30 requirements of a participating candidate as stated in this
  6 31 subchapter.
  6 32    b.  As a participating candidate during the primary election
  6 33 campaign period, the candidate had the highest number of votes
  6 34 of the candidates contesting the primary election from the
  6 35 candidate's respective party and won the party's nomination.
  7  1    Sec. 5.  NEW SECTION.  68A.803  Eligibility for independent
  7  2 candidates.
  7  3    1.  An independent candidate qualifies as a participating
  7  4 candidate for the primary election campaign period if the
  7  5 candidate does both of the following:
  7  6    a.  The candidate files a declaration with the board that
  7  7 the candidate has complied and will comply with all of the
  7  8 requirements of this subchapter, including the requirement
  7  9 that during the seed money period and the clean election
  7 10 campaign qualifying period the candidate not accept or
  7 11 spend private contributions from any source other than seed
  7 12 money contributions and clean election campaign qualifying
  7 13 contributions, unless the provisions of section 68A.804 apply.
  7 14    b.  The candidate meets the following qualifying contribution
  7 15 requirements before the close of the clean election campaign
  7 16 qualifying period:
  7 17    (1)  An independent candidate shall collect the same number
  7 18 of qualifying contributions as required of a party candidate
  7 19 for the same office under section 68A.802.
  7 20    (2)  Each qualifying contribution must meet all requirements
  7 21 of this section.
  7 22    2.  Contributors shall be registered voters who reside
  7 23 within the candidate's electoral district and who are therefore
  7 24 eligible to vote for that candidate.
  7 25    3.  Qualifying contributions shall be:
  7 26    a.  Made in cash, check, money order, or credit or debit
  7 27 card.
  7 28    b.  Gathered by the candidate personally or by volunteers who
  7 29 do not receive compensation.
  7 30    c.  Acknowledged by a receipt to the contributor, with
  7 31 a copy to be kept by the candidate and a third copy to be
  7 32 submitted to the board.  The receipt shall include a signed
  7 33 statement that the contributor understands that the purpose of
  7 34 the contribution is to help the candidate qualify for clean
  7 35 election campaign funding and that the contribution is made
  8  1 without coercion or reimbursement.  The receipt shall include
  8  2 the contributor's signature, printed name, home address, and
  8  3 telephone number, and the name of the candidate on whose behalf
  8  4 the contribution is made.
  8  5    d.  Paid over to the board for deposit in the voter=owned
  8  6 Iowa clean elections fund established under section 68A.823,
  8  7 with the signed and completed receipt, according to a schedule
  8  8 and procedure to be determined by the board.  A contribution
  8  9 submitted as a qualifying contribution that does not include
  8 10 the signed and completed receipt shall not be counted as a
  8 11 qualifying contribution.
  8 12    4.  An independent candidate qualifies as a participating
  8 13 candidate for the general election campaign period when the
  8 14 candidate does both of the following:
  8 15    a.  If, prior to the primary election, the candidate has met
  8 16 all of the applicable requirements of this subchapter and filed
  8 17 a declaration with the board that the candidate has fulfilled
  8 18 and will fulfill all of the requirements of a participating
  8 19 candidate as stated in this subchapter.
  8 20    b.  If, during the primary election campaign period, the
  8 21 candidate has fulfilled all the requirements of a participating
  8 22 candidate as stated in this subchapter.
  8 23    Sec. 6.  NEW SECTION.  68A.804  Transition rule for current
  8 24 election cycle.
  8 25    During the election cycle in effect on the date of enactment
  8 26 of this Act, a candidate may be certified as a participating
  8 27 candidate, notwithstanding the acceptance of contributions
  8 28 or making of expenditures from private funds before the date
  8 29 of enactment of this Act that would, absent this section,
  8 30 disqualify the candidate as a participating candidate, provided
  8 31 that any private funds accepted but not expended before the
  8 32 date of enactment of this Act shall either be returned to
  8 33 the contributor or submitted to the board for deposit in the
  8 34 voter=owned Iowa clean elections fund established under section
  8 35 68A.823.
  9  1    Sec. 7.  NEW SECTION.  68A.805  Continuing obligation to
  9  2 comply.
  9  3    A participating candidate who accepts any benefits under
  9  4 section 68A.813 during the primary election campaign period
  9  5 shall comply with all the requirements of this subchapter
  9  6 through any remaining time during the primary election campaign
  9  7 period as well as through the general election campaign period
  9  8 whether or not the candidate continues to accept benefits.
  9  9    Sec. 8.  NEW SECTION.  68A.806  Contributions and
  9 10 expenditures.
  9 11    1.  During the primary and general election campaign
  9 12 periods, a participating candidate who has voluntarily agreed
  9 13 to participate in clean election campaign financing shall not
  9 14 accept private contributions from any source other than the
  9 15 candidate's political party, as specified in section 68A.808.
  9 16    2.  A person shall not make a contribution in violation
  9 17 of section 68A.502.  A participating candidate who receives
  9 18 a qualifying contribution or a seed money contribution that
  9 19 is not from the person listed on the receipt as required by
  9 20 this subchapter shall pay to the board for deposit in the
  9 21 voter=owned Iowa clean elections fund established under section
  9 22 68A.823 the entire amount of such contribution.
  9 23    3.  The board shall issue each participating candidate a
  9 24 card known as the "clean election campaign debit card", and a
  9 25 line of debit entitling the candidate to draw clean election
  9 26 campaign funds to pay for all campaign costs and expenses up to
  9 27 the amount of funding the candidate has received.  During the
  9 28 primary and general election campaign periods, a participating
  9 29 candidate shall pay by means of the board's clean election
  9 30 campaign debit card. A participating candidate shall not pay
  9 31 campaign costs by cash, check, money order, loan, or by any
  9 32 other financial means other than the clean election campaign
  9 33 debit card.
  9 34    4.  Eligible candidates shall furnish complete campaign
  9 35 records, including all records of seed money contributions and
 10  1 qualifying contributions, to the board at regular filing times,
 10  2 or on request by the board.  Candidates shall cooperate with
 10  3 any audit or examination conducted or ordered by the board.
 10  4    Sec. 9.  NEW SECTION.  68A.807  Nonparticipating candidates
 10  5 ==== contribution limits.
 10  6    Nonparticipating candidates shall be subject to the
 10  7 following contribution limits:
 10  8    1.  Candidates for statewide office:
 10  9    a.  One thousand dollars in the aggregate per individual
 10 10 contribution.
 10 11    b.  Five thousand dollars in the aggregate per political
 10 12 committee contribution.
 10 13    2.  Candidates for the Iowa senate and house of
 10 14 representatives:
 10 15    a.  Five hundred dollars in the aggregate per individual
 10 16 contribution.
 10 17    b.  One thousand dollars in the aggregate per political
 10 18 committee contribution.
 10 19    Sec. 10.  NEW SECTION.  68A.808  Political party contributions
 10 20 and expenditures.
 10 21    1.  Participating candidates may accept monetary or in=kind
 10 22 contributions from political parties provided that the
 10 23 aggregate amount of such contributions from all political party
 10 24 committees combined does not exceed the equivalent of five
 10 25 percent of the clean election campaign financing amount for
 10 26 that office.
 10 27    2.  In=kind contributions made during a general election
 10 28 campaign period on behalf of a group of the party's candidates
 10 29 shall not be considered a prohibited party contribution or
 10 30 count against the five percent limit established in subsection
 10 31 1 if such group includes at least fifty=one percent of the
 10 32 candidates whose names will appear on the general election
 10 33 ballot in the political subdivision represented by the party
 10 34 committee making such in=kind contributions.
 10 35    3.  Contributions made to, and expenditures made by,
 11  1 political parties during primary and general campaign
 11  2 periods shall be reported to the board on the same basis as
 11  3 contributions and expenditures made to or by candidates.
 11  4    4.  This section and this subchapter shall not prevent
 11  5 political party funds from being used for any of the following:
 11  6    a.  General operating expenses of the party.
 11  7    b.  Conventions.
 11  8    c.  Nominating and endorsing candidates.
 11  9    d.  Identifying, researching, and developing the party's
 11 10 positions on issues.
 11 11    e.  Party platform activities.
 11 12    f.  Noncandidate=specific voter registration drives.
 11 13    g.  Noncandidate=specific get=out=the=vote drives.
 11 14    h.  Travel expenses for noncandidate party leaders and staff.
 11 15    i.  Other noncandidate=specific party=building activities,
 11 16 as defined by rule of the board.
 11 17    j.  Employing a staff person to provide election services to
 11 18 two or more candidates.
 11 19    Sec. 11.  NEW SECTION.  68A.809  Use of personal funds.
 11 20    1.  Personal funds contributed as seed money by a candidate
 11 21 seeking to become eligible as a participating candidate or by
 11 22 the candidate's spouse shall not exceed one hundred dollars per
 11 23 contributor.
 11 24    2.  Personal funds shall not be used to meet the qualifying
 11 25 contribution requirement except for one five=dollar
 11 26 contribution from the candidate and one five=dollar
 11 27 contribution from the candidate's spouse.
 11 28    Sec. 12.  NEW SECTION.  68A.810  Seed money.
 11 29    1.  The only private contributions a candidate seeking
 11 30 to become eligible for clean election campaign funding shall
 11 31 accept, other than qualifying contributions, are seed money
 11 32 contributions contributed by individual persons who are at
 11 33 least eighteen years of age prior to the end of the clean
 11 34 election campaign qualifying period.
 11 35    2.  A seed money contribution shall not exceed one hundred
 12  1 dollars, and the aggregate amount of seed money contributions
 12  2 accepted by a candidate seeking to become eligible for clean
 12  3 election campaign funding shall not exceed the relevant limit,
 12  4 as follows:
 12  5    a.  Twenty=five thousand dollars for a candidate team running
 12  6 for governor and lieutenant governor.
 12  7    b.  Fifteen thousand dollars for a candidate running for
 12  8 statewide office other than governor or lieutenant governor.
 12  9    c.  Two thousand dollars for a candidate running for the Iowa
 12 10 senate.
 12 11    d.  One thousand dollars for a candidate running for the Iowa
 12 12 house of representatives.
 12 13    3.  Receipts for seed money contributions shall include
 12 14 the contributor's signature, printed name, street address and
 12 15 zip code, telephone number, occupation, and name of employer.
 12 16 Contributions shall not be accepted if the required disclosure
 12 17 information is not received.
 12 18    4.  Seed money shall be spent only during the clean election
 12 19 campaign qualifying period.  Seed money shall not be spent
 12 20 during the primary or general election campaign periods.
 12 21    5.  Within forty=eight hours after the close of the clean
 12 22 election campaign qualifying period, candidates seeking to
 12 23 become eligible for clean election campaign funding shall do
 12 24 both of the following:
 12 25    a.  Fully disclose all seed money contributions and
 12 26 expenditures to the board.
 12 27    b.  Pay over to the board for deposit in the voter=owned
 12 28 Iowa clean elections fund any seed money the candidate has
 12 29 raised during the designated seed money period that exceeds the
 12 30 aggregate seed money limit.
 12 31    Sec. 13.  NEW SECTION.  68A.811  Participation in debates.
 12 32    1.  Participating candidates in contested races shall
 12 33 participate in all of the following:
 12 34    a.  For the offices of governor and lieutenant governor:
 12 35    (1)  One one=hour debate during a contested primary
 13  1 election.
 13  2    (2)  Two one=hour debates during a contested general
 13  3 election.
 13  4    b.  For all other offices:
 13  5    (1)  One one=hour debate during a contested primary
 13  6 election.
 13  7    (2)  One one=hour debate during a contested general
 13  8 election.
 13  9    2.  Nonparticipating candidates for the same office whose
 13 10 names will appear on the ballot shall be invited to join the
 13 11 debates.
 13 12    Sec. 14.  NEW SECTION.  68A.812  Certification.
 13 13    1.  No more than five days after a candidate applies for
 13 14 clean election campaign funding benefits, the board shall
 13 15 certify that the candidate is or is not eligible to receive
 13 16 clean election campaign funds.
 13 17    2.  The board may revoke a candidate's eligibility if
 13 18 the board determines that the candidate has violated the
 13 19 requirements of this subchapter, in which case the candidate
 13 20 shall repay all clean election campaign funds received by the
 13 21 candidate.
 13 22    3.  The candidate's request for certification shall be
 13 23 signed by the candidate and the treasurer of the candidate's
 13 24 committee, both under penalty of perjury.
 13 25    4.  The board's determination is final except that it is
 13 26 subject to examination and audit by an outside agency and to
 13 27 prompt judicial review, in compliance with rules promulgated by
 13 28 the board in accordance with chapter 17A.
 13 29    Sec. 15.  NEW SECTION.  68A.813  Benefits provided to
 13 30 candidates eligible to receive clean election campaign funding.
 13 31    1.  Candidates who qualify for clean election campaign
 13 32 funding for primary and general elections shall receive all of
 13 33 the following:
 13 34    a.  Clean election campaign funding from the board for each
 13 35 election, the amount of which is specified in section 68A.815.
 14  1 This funding may be used to finance any and all campaign
 14  2 expenses during the particular campaign period for which it is
 14  3 received.
 14  4    b.  Additional clean election campaign funding to match
 14  5 any excess expenditure amount spent by a nonparticipating
 14  6 candidate, as specified in section 68A.817.
 14  7    c.  Additional clean election campaign funding to match any
 14  8 independent expenditure made in opposition to their candidacies
 14  9 or on behalf of their opponents' candidacies, as specified in
 14 10 section 68A.819.
 14 11    d.  Additional clean election campaign funding to match
 14 12 any electioneering communication expenditure, as specified in
 14 13 section 68A.820.
 14 14    2.  The maximum aggregate amount of additional funding above
 14 15 the initial allocation determined under section 68A.815 that
 14 16 a participating candidate shall receive to match independent
 14 17 expenditures, the excess expenditures of nonparticipating
 14 18 candidates, and electioneering communication expenditures shall
 14 19 be two hundred percent of the full amount of clean election
 14 20 campaign funding allocated to a participating candidate for a
 14 21 particular primary or general election campaign period.
 14 22    Sec. 16.  NEW SECTION.  68A.814  Schedule of clean election
 14 23 campaign funding payments.
 14 24    1.  An eligible candidate shall receive clean election
 14 25 campaign funding for the primary election campaign period
 14 26 on the date on which the board certifies the candidate as a
 14 27 participating candidate.  This certification shall take place
 14 28 no later than five days after the candidate has submitted the
 14 29 required number of qualifying contributions and a declaration
 14 30 stating that the candidate has complied with all other
 14 31 requirements for eligibility as a participating candidate, but
 14 32 no earlier than the beginning of the primary election campaign
 14 33 period.
 14 34    2.  An eligible candidate shall receive clean election
 14 35 campaign funding for the general election campaign period
 15  1 within forty=eight hours after certification of the primary
 15  2 election results.
 15  3    Sec. 17.  NEW SECTION.  68A.815  Determination of clean
 15  4 election campaign funding amounts.
 15  5    1.  a.  For party candidates, the amount of clean election
 15  6 campaign funding for a contested primary election is as
 15  7 follows:
 15  8    (1)  Seven hundred fifty thousand dollars for a candidate
 15  9 team running for governor and lieutenant governor.
 15 10    (2)  Seventy=five thousand dollars for a candidate for
 15 11 statewide office other than governor and lieutenant governor.
 15 12    (3)  Twenty=two thousand five hundred dollars for a
 15 13 candidate running for the Iowa senate.
 15 14    (4)  Fifteen thousand dollars for a candidate running for the
 15 15 Iowa house of representatives.
 15 16    b.  The clean election campaign funding amount for an
 15 17 eligible party candidate in an uncontested primary election
 15 18 is twenty=five percent of the amount provided in a contested
 15 19 primary election.
 15 20    c.  In a contested general election, if an eligible party
 15 21 candidate or all of the candidates of the candidate's party
 15 22 combined received at least twenty percent of the total number
 15 23 of votes cast for all candidates seeking that office in
 15 24 the most recent primary election or in the previous general
 15 25 election, the candidate shall receive the full amount of clean
 15 26 election campaign funding for the general election, as follows:
 15 27    (1)  Three million dollars for a candidate team running for
 15 28 governor and lieutenant governor.
 15 29    (2)  Two hundred thousand dollars for a candidate for
 15 30 statewide office other than governor and lieutenant governor.
 15 31    (3)  Forty thousand dollars for a candidate running for the
 15 32 Iowa senate.
 15 33    (4)  Thirty thousand dollars for a candidate running for the
 15 34 Iowa house of representatives.
 15 35    d.  The clean election campaign funding amount for an
 16  1 eligible party candidate in an uncontested general election
 16  2 is ten percent of the amount provided in a contested general
 16  3 election for the same office.
 16  4    2.  a.  For eligible independent candidates, the clean
 16  5 election campaign funding amount for the primary election
 16  6 campaign period is twenty=five percent of the amount of clean
 16  7 election campaign funding received by a party candidate in a
 16  8 contested primary election for the same office.
 16  9    b.  The clean election campaign funding amount for an
 16 10 eligible independent candidate in the general election is the
 16 11 same as the full amount received by a party candidate in the
 16 12 general election for the same office.
 16 13    c.  After the first cycle of clean election campaign
 16 14 financing elections, the board shall modify all clean election
 16 15 campaign funding amounts based on the percentage increase in
 16 16 the consumer price index, for all urban consumers, United
 16 17 States city average, as published in the federal register
 16 18 by the United States department of labor, bureau of labor
 16 19 statistics, that reflects the percentage increase in the
 16 20 consumer price index for the twelve=month period ending
 16 21 December 31 of the previous year.
 16 22    Sec. 18.  NEW SECTION.  68A.816  Expenditures made with clean
 16 23 election campaign funds.
 16 24    1.  The clean election campaign funding received by a
 16 25 participating candidate shall be used only for the purpose of
 16 26 defraying that candidate's campaign=related expenses during
 16 27 the particular election campaign period for which the clean
 16 28 election campaign funding was received.
 16 29    2.  Payments shall not be used for the following:
 16 30    a.  Payments that are in violation of the law.
 16 31    b.  Payments that repay any personal, family, or business
 16 32 loans, expenditures, or debts.
 16 33    Sec. 19.  NEW SECTION.  68A.817  Disclosure of excess spending
 16 34 by nonparticipating candidates.
 16 35    1.  If a nonparticipating candidate's total expenditures
 17  1 exceed the amount of clean election campaign funding allocated
 17  2 to the candidate's clean election campaign opponent, the
 17  3 candidate shall declare to the board within forty=eight hours
 17  4 every excess expenditure amount that, in the aggregate, is more
 17  5 than one thousand dollars.
 17  6    2.  During the last twenty days before the end of the
 17  7 relevant campaign period, a nonparticipating candidate shall
 17  8 declare to the board each excess expenditure amount over
 17  9 five hundred dollars within twenty=four hours of when the
 17 10 expenditure is made or obligated to be made.
 17 11    3.  The board may make its own determination as to whether
 17 12 excess expenditures have been made by nonparticipating
 17 13 candidates.
 17 14    4.  Upon receiving an excess expenditure declaration, the
 17 15 board shall immediately release additional clean election
 17 16 campaign funding to the opposing participating candidate
 17 17 or candidates equal to the excess expenditure amount the
 17 18 nonparticipating candidate has spent or intends to spend,
 17 19 subject to the limit set forth in section 68A.813.
 17 20    Sec. 20.  NEW SECTION.  68A.818  Campaign advertisements.
 17 21    All broadcast and print advertisements placed by candidates
 17 22 or candidate's committees shall, in addition to the
 17 23 requirements of section 68A.405, include a clear written or
 17 24 spoken statement indicating that the candidate has approved of
 17 25 the contents of the advertisement.
 17 26    Sec. 21.  NEW SECTION.  68A.819  Disclosure of independent
 17 27 expenditures ==== additional clean election campaign funding.
 17 28    1.  Any person or group of persons who makes or obligates
 17 29 to make an independent expenditure during a primary or general
 17 30 election campaign period which, in the aggregate, exceeds one
 17 31 thousand dollars, shall report each expenditure within forty=
 17 32 eight hours to the board.
 17 33    2.  The report to the board shall include a statement,
 17 34 under penalty of perjury, by the person or persons making
 17 35 the independent expenditure identifying the candidate the
 18  1 independent expenditure is intended to help elect or defeat
 18  2 and affirming that the expenditure is totally independent and
 18  3 involves no coordination with a candidate or a political party.
 18  4    a.  An individual or organization may file a complaint with
 18  5 the board if the candidate or the organization believes that
 18  6 the statement according to this subsection is false.
 18  7    b.  A hearing on a complaint under this subsection shall be
 18  8 held within three business days of filing and a decision issued
 18  9 within seven days of filing.
 18 10    3.  Any person or group of persons who makes or obligates
 18 11 to make an independent expenditure during the last twenty days
 18 12 before the end of the relevant campaign period which, in the
 18 13 aggregate, exceeds five hundred dollars, shall report each
 18 14 expenditure within twenty=four hours to the board.
 18 15    4.  Upon receiving a report that an independent expenditure
 18 16 has been made or obligated to be made, the board shall
 18 17 immediately release additional clean election campaign funding,
 18 18 equal in amount to the cost of the independent expenditure, to
 18 19 all participating candidates the independent expenditure is
 18 20 intended to oppose or defeat, subject to the limit set forth
 18 21 in section 68A.813.
 18 22    Sec. 22.  NEW SECTION.  68A.820  Electioneering communications
 18 23 ==== disclosure ==== additional clean election campaign funding.
 18 24    1.  A person who makes or obligates to make a disbursement to
 18 25 purchase an electioneering communication shall file a report
 18 26 with the board not later than forty=eight hours after making or
 18 27 obligating to make the disbursement, containing the following
 18 28 information:
 18 29    a.  The amount of the disbursement.
 18 30    b.  The name and address of the person making the
 18 31 disbursement.
 18 32    c.  The purpose of the electioneering communication.
 18 33    2.  Upon receiving a report that an electioneering
 18 34 communication has been made or obligated to be made, and
 18 35 upon determination that the electioneering communication can
 19  1 reasonably be interpreted as having the effect of promoting
 19  2 the defeat of a participating candidate or the election
 19  3 of that candidate's opponent, the board shall immediately
 19  4 release to that candidate additional clean election campaign
 19  5 funding, equal in amount to the cost of the electioneering
 19  6 communication, subject to the limit set forth in section
 19  7 68A.813.
 19  8    Sec. 23.  NEW SECTION.  68A.821  Voter information program.
 19  9    1.  The board shall establish and administer a nonpartisan
 19 10 voter information program, including an advisory council
 19 11 consisting of representatives of nonprofit organizations,
 19 12 political parties, the media, and interested citizens.
 19 13    2.  The voter information program advisory council may
 19 14 establish a voter information program for the purpose of
 19 15 providing voters with election=related information and
 19 16 fostering political dialogue and debate.
 19 17    3.  The voter information program advisory council
 19 18 shall organize the publication and distribution of a voter
 19 19 information guide that includes important information about the
 19 20 following issues:
 19 21    a.  Candidates appearing on the ballot, including
 19 22 biographical material submitted by the candidates.
 19 23    b.  Whether candidates are funding their campaigns with
 19 24 public money or private money.
 19 25    c.  Policy statements by the candidates or their political
 19 26 parties on issues designated by the council and other issues.
 19 27    d.  Candidates' voting records.
 19 28    Sec. 24.  NEW SECTION.  68A.822  Debates.
 19 29    1.  A nonpartisan organization that is involved in
 19 30 providing information to the public concerning elections, or a
 19 31 nonpartisan organization that has been involved in education
 19 32 and the advocacy of open, clean election and campaign laws for
 19 33 at least five years, may host and sponsor voter=owned Iowa
 19 34 clean election candidate debates in contested primary and
 19 35 general elections.
 20  1    2.  All participating candidates shall participate in the
 20  2 debates and all nonparticipating candidates for the same office
 20  3 whose names will appear on the ballot shall be invited to join
 20  4 the debates.
 20  5    Sec. 25.  NEW SECTION.  68A.823  Voter=owned Iowa clean
 20  6 elections fund (VOICE) ==== nature and purposes.
 20  7    1.  A voter=owned Iowa clean elections fund is established as
 20  8 a separate fund within the office of the state treasurer, under
 20  9 the control of the board, for the following purposes:
 20 10    a.  Providing public financing for the election campaigns of
 20 11 certified participating candidates during primary election and
 20 12 general election campaign periods.
 20 13    b.  Paying for the administrative and enforcement costs of
 20 14 the board in relation to this subchapter.
 20 15    2.  The fund shall consist of moneys received pursuant to
 20 16 section 68A.824.  Notwithstanding section 8.33, unencumbered
 20 17 or unobligated moneys and any interest earned on moneys in the
 20 18 fund on June 30 of any fiscal year shall not revert to the
 20 19 general fund of the state but shall remain in the fund and be
 20 20 available for expenditure in subsequent years.
 20 21    Sec. 26.  NEW SECTION.  68A.824  Funding.
 20 22    In addition to any moneys appropriated by the general
 20 23 assembly to the voter=owned Iowa clean elections fund
 20 24 established in section 68A.823, the following moneys shall be
 20 25 deposited in the fund:
 20 26    1.  The qualifying contributions required of candidates
 20 27 seeking to become certified as participating candidates
 20 28 according to section 68A.802 or 68A.803 and candidates' excess
 20 29 qualifying contributions.
 20 30    2.  Moneys credited to the fund pursuant to sections 68A.610
 20 31 and 556.18.
 20 32    3.  The excess seed money contributions of candidates
 20 33 seeking to become certified as participating candidates.
 20 34    4.  Moneys distributed to any participating candidate
 20 35 who does not remain a candidate until the primary or general
 21  1 election for which they were distributed.
 21  2    5.  Civil penalties levied by the board against candidates
 21  3 for violations of this subchapter.
 21  4    6.  Voluntary donations made directly to the fund.
 21  5    7.  Any other sources of revenue designated by the general
 21  6 assembly.
 21  7    Sec. 27.  NEW SECTION.  68A.825  Powers and procedures.
 21  8    The board shall have the following powers and duties, in
 21  9 addition to those granted in this chapter and chapter 68B, when
 21 10 administering this subchapter:
 21 11    1.  After every primary and general election, the board
 21 12 may conduct random audits and investigations to ensure
 21 13 compliance with this subchapter.  The subjects of such audits
 21 14 and investigations shall be selected on the basis of impartial
 21 15 criteria established by a vote of at least four members of the
 21 16 board.
 21 17    2.  a.  The board may investigate anonymous complaints.
 21 18    b.  The identity of a complainant may be kept confidential
 21 19 if the complainant states in the complaint that revealing
 21 20 the identity of the complainant could reasonably result in
 21 21 disciplinary action or loss of employment.
 21 22    3.  The board may seek injunctions when all of the following
 21 23 conditions are met:
 21 24    a.  There is a substantial likelihood that a violation of
 21 25 this subchapter is occurring or is about to occur.
 21 26    b.  The failure to act expeditiously will result in
 21 27 irreparable harm to a party affected by the violation or
 21 28 potential violation.
 21 29    c.  Expeditious action will not cause undue harm or prejudice
 21 30 to the interests of others.
 21 31    d.  The public interest would be best served by the issuance
 21 32 of an injunction.
 21 33    4.  The board may levy civil penalties for violations of
 21 34 this subchapter.  Civil penalties shall be deposited in the
 21 35 voter=owned Iowa clean elections fund.
 22  1    5.  The board shall refer criminal violations to the county
 22  2 attorney or attorney general for prosecution.
 22  3    6.  The board may participate fully in any actions filed
 22  4 under this section.
 22  5    7.  The board shall adopt rules pursuant to chapter 17A as
 22  6 necessary to administer this subchapter.
 22  7    Sec. 28.  NEW SECTION.  68A.826  Civil actions.
 22  8    1.  A citizen of this state who believes a candidate has
 22  9 violated this subchapter may pursue a civil action in a court
 22 10 of relevant jurisdiction, provided that both of the following
 22 11 are true:
 22 12    a.  The citizen has previously filed a complaint with the
 22 13 board regarding the same alleged violation.
 22 14    b.  The board has failed to make a determination within
 22 15 thirty days of the filing of the complaint.
 22 16    2.  A complainant who prevails in a civil action charging
 22 17 a violation of this subchapter shall be entitled to receive
 22 18 reasonable attorney fees and court costs from the defendant.
 22 19    3.  If a court in which a civil action has been filed under
 22 20 subsection 1 finds that the complaint in that action was
 22 21 made frivolously or without cause, the court may require the
 22 22 complainant to pay the costs of the board, the court, and the
 22 23 defendant parties.
 22 24    Sec. 29.  NEW SECTION.  68A.827  Board reports.
 22 25    1.  The board shall report to the general assembly after each
 22 26 election cycle.
 22 27    2.  The report shall include a detailed summary of all
 22 28 seed money contributions, qualifying contributions, and clean
 22 29 election campaign funding benefits received, and expenditures
 22 30 made, by all participating candidates.  The report shall also
 22 31 include a summary and evaluation of the board's activities and
 22 32 recommendations relating to the implementation, administration,
 22 33 and enforcement of this subchapter.
 22 34    Sec. 30.  NEW SECTION.  68A.828  Repayments of excess
 22 35 expenditures.
 23  1    1.  If a participating candidate spends or obligates to spend
 23  2 more than the clean election campaign funding the candidate
 23  3 receives, and if such is determined not to be an amount that
 23  4 had or could have been expected to have a significant impact
 23  5 on the outcome of the election, the candidate shall personally
 23  6 repay to the voter=owned Iowa clean elections fund an amount
 23  7 equal to the excess.
 23  8    2.  If a participating candidate spends or obligates to spend
 23  9 more than the clean election campaign funding the candidate
 23 10 receives, and if such is determined to be an amount that had or
 23 11 could have been expected to have a significant impact on the
 23 12 outcome of the election, the candidate shall personally repay
 23 13 to the voter=owned Iowa clean elections fund an amount equal to
 23 14 five times the value of the excess.
 23 15    Sec. 31.  NEW SECTION.  68A.829  Penalties.
 23 16    1.  A candidate shall not knowingly accept more benefits than
 23 17 those to which the candidate is entitled, spend more than the
 23 18 amount of clean election campaign funding received, or misuse
 23 19 such clean election campaign funding benefits or clean election
 23 20 campaign funding.
 23 21    2.  If a violation of subsection 1 was intentional and
 23 22 involved an amount that had or could have been expected to
 23 23 have a significant impact on the outcome of the election, the
 23 24 candidate commits an aggravated misdemeanor.
 23 25    3.  If it is determined that the violation of subsection
 23 26 1 was intentional and involved an amount that had or could
 23 27 have been expected to have a significant impact on the
 23 28 outcome of the election, and if, in the judgment of the
 23 29 board, the violation is believed to have contributed to the
 23 30 violator winning the election, the board may recommend to
 23 31 the appropriate authority that proceedings be commenced to
 23 32 remove the violator from office or to impeach the violator if
 23 33 applicable.
 23 34    4.  A person shall not provide false information to the board
 23 35 or conceal or withhold information from the board.  A violation
 24  1 of this subsection is an aggravated misdemeanor.
 24  2    Sec. 32.  NEW SECTION.  68A.830  Local provision.
 24  3    Each city council, school board, and county board of
 24  4 supervisors shall have the authority to adopt and fund a
 24  5 voter=owned Iowa clean elections fund, consistent with this
 24  6 subchapter, for local government elections.
 24  7    Sec. 33.  Section 422.7, Code 2015, is amended by adding the
 24  8 following new subsection:
 24  9    NEW SUBSECTION.  57.  Subtract, to the extent not otherwise
 24 10 excluded, up to two hundred dollars of the amount contributed
 24 11 to the voter=owned Iowa clean elections fund pursuant to
 24 12 section 68A.824, subsection 6.
 24 13    Sec. 34.  Section 422.12E, subsection 1, Code 2015, is
 24 14 amended to read as follows:
 24 15    1.  For tax years beginning on or after January 1, 2004,
 24 16 there shall be allowed no more than four income tax return
 24 17 checkoffs on each income tax return. When the same four income
 24 18 tax return checkoffs have been provided on the income tax
 24 19 return for two consecutive years, the two checkoffs for which
 24 20 the least amount has been contributed, in the aggregate for the
 24 21 first tax year and through March 15 of the second tax year, are
 24 22 repealed. This section does not apply to the income tax return
 24 23 checkoff checkoffs provided in section sections 68A.601 and
 24 24 68A.610.
 24 25    Sec. 35.  NEW SECTION.  422.12I  Income tax checkoff for
 24 26 voter=owned Iowa clean elections fund.
 24 27    A person who files an individual or a joint income tax
 24 28 return with the department of revenue under section 422.13
 24 29 may designate a contribution to the voter=owned Iowa clean
 24 30 elections fund authorized pursuant to section 68A.610.
 24 31    Sec. 36.  Section 556.18, subsection 2, Code 2015, is amended
 24 32 by adding the following new paragraph:
 24 33    NEW PARAGRAPH.  e.  Ten million dollars to be deposited
 24 34 in the voter=owned Iowa clean elections fund established in
 24 35 section 68A.823.
 25  1    Sec. 37.  Section 556.18, subsection 3, Code 2015, is amended
 25  2 to read as follows:
 25  3    3.  The treasurer of state shall annually credit all moneys
 25  4 received under section 556.4 to the general fund of the state.
 25  5 Moneys credited to the general fund of the state pursuant to
 25  6 this subsection are subject to the requirements of subsections
 25  7 1 and 2 and section 8.60.  However, if the amount collected
 25  8 under subsection 2, paragraph "e", does not equal ten million
 25  9 dollars, the treasurer of state shall annually pay over an
 25 10 amount received under section 556.4 as necessary to bring the
 25 11 amount deposited in the voter=owned Iowa clean elections fund
 25 12 to ten million dollars.
 25 13    Sec. 38.  SEVERABILITY.  The provisions of this Act are
 25 14 severable as provided in section 4.12.
 25 15    Sec. 39.  IMPLEMENTATION OF ACT.  Section 25B.2, subsection
 25 16 3, shall not apply to this Act.
 25 17    Sec. 40.  EFFECTIVE DATES.
 25 18    1.  Except as provided in subsection 2, this Act takes effect
 25 19 November 7, 2018.
 25 20    2.  The following provision or provisions of this Act take
 25 21 effect January 1, 2016:
 25 22    a.  The section of this Act enacting section 68A.610.
 25 23    b.  The section of this Act enacting section 422.12I.
 25 24    c.  The section of this Act amending section 422.7.
 25 25    d.  The section of this Act amending section 556.18.
 25 26                           EXPLANATION
 25 27 The inclusion of this explanation does not constitute agreement with
 25 28 the explanation's substance by the members of the general assembly.
 25 29    This bill amends Code chapter 68A, relating to campaign
 25 30 finance law, by creating a voluntary mechanism for publicly
 25 31 financed elections and establishing contribution limits for
 25 32 candidates who do not participate in the public financing
 25 33 process.
 25 34    The bill enacts a process for public financing for statewide
 25 35 and legislative elections and enacts new Code section 68A.801,
 26  1 providing definitions for key terms related to this process.
 26  2    New Code section 68A.823 establishes a separate,
 26  3 nonreverting fund in the state treasury to be known as the
 26  4 voter=owned Iowa clean elections (VOICE) fund, and new Code
 26  5 section 68A.824 provides sources of revenue for the fund.
 26  6    New Code sections 68A.802 and 68A.803 specify the
 26  7 eligibility procedures for both party and independent
 26  8 candidates to become participating candidates, and specify
 26  9 the number of and details for collection of qualifying
 26 10 contributions.
 26 11    New Code section 68A.805 provides that any candidate who
 26 12 accepts benefits during the primary election campaign period
 26 13 must continue to comply with the requirements of the public
 26 14 financing process, even if the candidate stops accepting
 26 15 benefits of the program at any point during the primary or
 26 16 general election campaign periods.
 26 17    New Code section 68A.806 prohibits a participating candidate
 26 18 from accepting private funding during the primary and general
 26 19 election campaign periods other than certain permitted party
 26 20 funding.  Contributions in the name of another person are
 26 21 prohibited and subject to payment to the board as are any
 26 22 applicable penalties.  The use of personal funds for seed money
 26 23 or as qualifying contributions is limited by new Code section
 26 24 68A.809.
 26 25    New Code section 68A.807 establishes contribution limits for
 26 26 those candidates who choose not to participate in the public
 26 27 financing process.
 26 28    New Code section 68A.808 limits political party
 26 29 contributions and expenditures on behalf of participating
 26 30 candidates.
 26 31    New Code section 68A.810 details the collection of private
 26 32 contributions for use as seed money, limited by new Code
 26 33 section 68A.809 to a $100 contribution per individual person
 26 34 at least 18 years of age, and also limited in the aggregate in
 26 35 differing amounts for candidates for governor and lieutenant
 27  1 governor, for other statewide candidates, for Iowa senate
 27  2 candidates, and for Iowa house of representatives candidates.
 27  3 Seed money expenditures are limited to the clean election
 27  4 campaign qualifying period and seed money contributions and
 27  5 expenditures must be fully disclosed at the end of the public
 27  6 financing qualifying period.
 27  7    New Code section 68A.812 provides for a certification
 27  8 process after a candidate applies for public financing campaign
 27  9 funding benefits and requires repayment of funds if eligibility
 27 10 is revoked.  The bill provides for audit and judicial review of
 27 11 certification decisions made by the board.
 27 12    New Code section 68A.813 provides certain benefits and
 27 13 obligations for participating candidates, including specified
 27 14 amounts of public funding pursuant to new Code section
 27 15 68A.815, mandatory participation in debates pursuant to new
 27 16 Code sections 68A.811 and 68A.822, and, pursuant to new Code
 27 17 section 68A.817, additional limited public funding to respond
 27 18 to certain excess expenditures by nonparticipating candidates,
 27 19 independent expenditures, and electioneering communications
 27 20 expenditures.
 27 21    New Code section 68A.814 provides for a schedule of payments
 27 22 to participating candidates, and new Code section 68A.815
 27 23 specifies differing total amounts for primary and general
 27 24 elections for candidates for governor and lieutenant governor,
 27 25 for other statewide candidates, for Iowa senate candidates,
 27 26 and for Iowa house of representatives candidates.  Alternate
 27 27 amounts are provided for uncontested races.  Pursuant to new
 27 28 Code section 68A.816, clean election campaign funding payments
 27 29 must be used only for campaign=related expenses, and cannot be
 27 30 used for payments in violation of law or to repay personal or
 27 31 business loans, expenditures, or debts.
 27 32    New Code section 68A.817 provides that nonparticipating
 27 33 candidates must disclose within 48 hours every expenditure
 27 34 in excess of the public financing funding allocated to the
 27 35 candidate's participating opponent that in the aggregate is
 28  1 more than $1,000.  Certain other reporting requirements apply
 28  2 during the last 20 days of a campaign.
 28  3    All candidates must include a statement with all
 28  4 advertisements indicating that the candidate has approved of
 28  5 the contents of the advertisement, pursuant to new Code section
 28  6 68A.818.
 28  7    New Code section 68A.819 provides that persons making
 28  8 certain independent expenditures must report such expenditures
 28  9 to the board, along with an affidavit affirming that the
 28 10 expenditure has not been coordinated with the candidate or
 28 11 party.  Alleged violations of the coordination affirmation are
 28 12 subject to an expedited hearing procedure.
 28 13    Persons making certain electioneering communications must
 28 14 also report to the board, pursuant to new Code section 68A.820.
 28 15    New Code section 68A.821 provides that the board shall
 28 16 administer a voter information program, including establishment
 28 17 of an advisory council, to provide voters with election=related
 28 18 information, including a voter guide with candidate
 28 19 biographical material, policy statements, voting records, and
 28 20 whether the candidate funds the campaign with public or private
 28 21 money.
 28 22    New Code section 68A.825 provides the board with certain
 28 23 specific enforcement powers and duties in relation to the
 28 24 new subchapter, and new Code section 68A.827 provides for an
 28 25 election cycle report by the board to the general assembly on
 28 26 the public financing process.
 28 27    New Code section 68A.826 creates a civil right of action for
 28 28 citizens alleging that a candidate has violated the law.
 28 29    Violations of the public financing process are subject
 28 30 to aggravated misdemeanor penalties, pursuant to new Code
 28 31 section 68A.829.  An aggravated misdemeanor is punishable
 28 32 by confinement for nor more than two years and a fine of at
 28 33 least $625 but not more than $6,250.  New Code section 68A.828
 28 34 provides for repayment of certain excess expenditures by the
 28 35 candidate.
 29  1 New Code sections 68A.610 and 422.12I create an income tax
 29  2 checkoff for the voter=owned Iowa clean elections fund.  This
 29  3 checkoff allows a person to direct that $5 of that person's
 29  4 state income tax liability be paid over to the Iowa voter=owned
 29  5 clean elections fund.
 29  6    Code section 422.7, new subsection 57, is enacted to
 29  7 provide up to a $200 exemption from income for purposes of the
 29  8 individual income tax for contributions to the Iowa voter=owned
 29  9 clean elections fund.
 29 10    Code section 556.18 is amended to provide that $10 million
 29 11 shall be annually transferred from the proceeds from the sale
 29 12 by the state of lost or unclaimed property to the voter=owned
 29 13 Iowa clean elections fund.
 29 14    The sections of the bill enacting the income tax checkoff,
 29 15 the exemption from the individual income tax, and the transfer
 29 16 in Code section 556.18 take effect January 1, 2016.  The
 29 17 remainder of the bill takes effect November 7, 2018, which
 29 18 is the day after the 2018 general election day, to allow the
 29 19 public financing process to commence with a new campaign cycle.
 29 20 New Code section 68A.804 provides guidelines for disposition of
 29 21 money collected by candidates prior to the effective date of
 29 22 the public financing process.
 29 23    The bill may include a state mandate as defined in Code
 29 24 section 25B.3.  The bill makes inapplicable Code section 25B.2,
 29 25 subsection 3, which would relieve a political subdivision from
 29 26 complying with a state mandate if funding for the cost of
 29 27 the state mandate is not provided or specified.  Therefore,
 29 28 political subdivisions are required to comply with any state
 29 29 mandate included in the bill.
       LSB 1272YH (4) 86
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