State Government – Week of March 1, 2010

STAFF CONTACT: Theresa Kehoe

SF 2088 – State Government Reorganization & Efficiency Act

SF 2217 – Purchasing of Raffle Tickets

SF 2353 – ICN Connection Facilities

SF 2354 – Independent Expenditures by Corporations

HF 2488 – Appointment of Young Adults Boards, Commission & Councils

FLOOR ACTION

SF 2088 is referred to as the State Government Reorganization and Efficiency Act. Highlights include:

Establishing “e-government” technology efficiencies and consolidation.
Increasing government buying power by expanding group and cooperative purchasing agreements.
Eliminating and/or merging numerous advisory commissions and state agencies.
Reducing state printing by moving toward electronic documents.
Expanding online training.
Streamlining and improving government efficiencies, resulting in savings to Iowa taxpayers.
Reducing middle-management positions by increasing supervisor to worker ratios (span of control).
Expanding ways to recover revenue owed to state government.
Improving the Area Education Agency (AEA) system by increasing transparency, efficiency and value to Iowa schools and students.
Improving the efficiency and continuity of services and oversight of Iowa’s Community Empowerment program. [2/25: 41-2 (No: Behn, Wieck)]

SF 2217 allows a person participating in a raffle conducted by an eligible organization to purchase raffle tickets by check, money order, credit card or debit card for one raffle per calendar year. The Department of Inspections and Appeals is required to adopt rules setting minimum standards concerning protection of personal information consistent with payment-card industry regulations. A qualified organization is defined as one that has conducted a raffle during the previous eight consecutive calendar years in which the net proceeds are distributed to a museum. [2/25: 31-16]

SF 2353 relates to the provision of services over the presently leased Iowa Communication Network (ICN) connection facilities. Currently, the state is required to lease all connections that apply to part III connections, the judicial branch, the judicial district departments of correctional services, and state agencies that are paid for with state funding from qualified providers and is prohibited from owning such connections except for facilities owned by the state as of January 1, 1994. As amended, the bill authorizes the state to provide fiber optic cable facilities or other facilities with sufficient capacity as determined by the Iowa Telecommunications and Technology Commission (ITTC), in consultation with authorized users, in a manner other than through a lease under specified circumstances. [3/3: 47-0]

SF 2354 is proposed in the wake of Citizens United v. FEC, a U.S. Supreme Court decision that opened the floodgates to corporate money in Iowa campaigns. For the first time in modern campaigns, big corporations will now be allowed to spend money from their vast corporate treasuries in connection with Iowa elections.

Information Disclosed on Reports – In kinds

A committee receiving an in-kind contribution is required to report the estimated fair market value of the in-kind contribution at the time it is provided to the committee.

The person providing the in-kind contribution is required to notify the committee of the estimated fair market value of the in-kind contribution at the time the in-kind contribution is provided the committee. Estimated fair market value of the in-kind contribution is to be reported regardless of whether the person has been billed for the cost of the in-kind contribution.

Independent Expenditure Termination Reports

Termination reports are due to the Campaign Finance Disclosure Board 30 days after it determines it will no longer receive contributions or make disbursements. The Board provides forms to be used.

Independent Expenditures

Independent Expenditure is defined as one or more expenditures in excess of $750 in the aggregate for the communication that expressly advocates the nomination, election or defeat of a clearly identified candidate or the passage or defeat of a candidate or the passage or defeat of a ballot issue that is made without the prior approval or coordination with a candidate, candidate’s committee or a ballot issue committee.
An entity shall not make an independent expenditure made by another person without the authorization of a majority of the entity’s board of directors, executive council or similar organizational leadership body. The authorization shall occur in the same calendar year in which the independent expenditure is incurred.
The authorization is required to provide whether the board of directors (or similar organization leadership body) authorizes one or more independent expenditures that expressly advocate the nomination or election of a candidate or passage of a ballot issue or authorizes one or more independent expenditures that expressly advocate the defeat of a candidate or ballot issue.
A foreign national is prohibited from making an independent expenditure of any kind.
“Foreign national” means a person who is not a citizen of the United States and who is not lawfully admitted for permanent residence. “Foreign national” also includes a “foreign principal,” such as a government of a foreign country or a foreign political party, partnership, association, corporation, organization or other combination of persons that has its primary place of business in or is organized under the laws of a foreign country. “Foreign national” shall not include any person who is a citizen of the United States or who is a national of the United States.
All statements and reports required shall be filed by electronic format.
A person filing the independent expenditure statement is required to file information disclosure reports.
An initial report shall be filed at the same time as the independent expenditure statement.
Subsequent reports shall be filed according to the same schedule as the office or election to which the independent expenditure was directed.
A supplemental report shall be filed after a primary or general election if the person making the independent expenditure either raises or spends more than $1,000.
Trigger for filing disclosure reports and independent expenditure reports is $750 – the same threshold used for candidate committees.
The report does not require the inclusion of the individual members who pay dues to an organization, labor union or association, or individual stockholders of a publicly traded business corporation.
An independent expenditure statement shall be filed within 48 hours of making of an independent expenditure in excess of $750 in the aggregate or within 48 hours of disseminating the communication, whichever is earlier. For purposes of this section, an independent expenditure is made when the independent expenditure is purchased or ordered regardless of whether or not the person making the independent expenditure has been billed for the cost of the independent expenditure.
The statement is to include a certification that the board of directors (or similar organization leadership body) expressly authorized the independent expenditure or use of treasury funds for the independent expenditure by resolution or other affirmative action within the calendar year when the independent expenditure was incurred.
A person making an independent expenditure shall not engage or retain an advertising firm or consultant that has also been engaged or retained by the candidate, candidate’s committee or ballot issue committee that is benefited by the independent expenditure.

Attribution statement on published material.

Published material also includes television, video or motion picture advertising.
Disclosure statement: A corporation is required to include the words “paid for by,” the name and address of the corporation, and the name and title of the corporation’s CEO on the material.
When an independent expenditure includes published material, the published material is required to include a statement that the published material was not authorized by any candidate, candidate’s committee or ballot issue committee.
For television, video or motion picture advertising, the attribution statement shall be displayed on the screen in a clearly readable manner for at least four seconds.

Financial institution, insurance company and corporate contributions prohibited

Except as provided in subs 3, 4, 5 and 6, an insurance company, savings and loan association, bank, credit union or corporation shall not make a monetary or in-kind contribution to a candidate or committee except for a ballot issue committee.
Except as provided in sub 3, a candidate or committee, except for a ballot issue committee, will not receive a monetary or in-kind contribution from an insurance company, savings and loan association, bank, credit union or corporation.
An insurance company, savings and loan association, bank, credit union or corporation may use money, property, labor or any other thing of value of the entity for the purposes of soliciting its stockholders, administrative officers and members for contributions to a political committee sponsored by that entity and for financing the administration of a political committee sponsored by that entity. The entity’s employees, to whom the foregoing authority does not extend, may voluntarily contribute to such a political committee but will not be solicited for contributions. A candidate or committee may solicit, request and receive money, property, labor and any other thing of value form a political committee sponsored by an insurance company, savings and loan association, bank, credit union or corporation as permitted by this subsection.

These prohibitions shall not apply to an insurance company, savings and loan association, bank, credit union or corporation engaged in any of the following activities:
- Using its funds to encourage registration of voters and participation in the political process or to publicize public issues.
- Using its funds to expressly advocate the passage or defeat of ballot issues.
- Using its funds to place campaign signs as permitted under 68A.406.
- Using its funds for independent expenditures as provided in 68A.404.

The prohibitions in subs 1 and 2 shall not apply to media organizations when discussing candidacies, nominations, public officers or public questions. The board shall adopt rules prohibiting the owner, publisher or editor of a sham newspaper from using the sham newspaper to promote in any way the candidacy of such a person for any public office. As used in the subsection, “sham newspaper” means a newspaper that does not meet the requirements in 618.3 and owner means a person having an ownership interest exceeding 10 percent of the equity or profits of the newspaper.

These prohibitions will not apply to a nonprofit organization communicating with its own members. The board shall adopt rules to administer this subsection.

For purposes of this section, “corporation” means a for-profit or nonprofit corporation organized pursuant to Iowa laws, the United States or any other state, territory or foreign country.

Filing Requirements for Corporations 490.120

Requires that filing documents of a corporation must contain a statement that the corporation agrees to refrain from any campaign activities prohibited under 68A.

Emergency Rules

Campaign Finance Disclosure Board has the authority to promulgate emergency rules. Rules will also be published as a notice of intended action.

The act is effective upon enactment. [3/1:49-1 (No: Zaun)]

COMMITTEE ACTION

HF 2488 directs all state appointive boards, commissions, committees and councils to consider at least one member who is a young adult. Young adult is defined as a person at least 18 but less than 35 years of age. [3/2: 14-1 (No: Hartsuch)]