Here’s a briefing on the VOICE bill by Jenifer Parsons. She produced this work April 2, 2007 for the Iowa House Democrats. Parsons is a member of their research staff. It has been shortened just a little bit by my editing.
VOTER OWNED IOWA CLEAN ELECTIONS ACT
HF 805
Current Status: House Appropriations Committee
This new Act gives candidates for public office a choice in how they fund their campaign for elective office. It is completely voluntary on the part of the candidate. VOICE provides qualifying candidates—who agree to limit their spending and reject contributions from private sources—with a set amount of public funds to run for office.
In general, VOICE candidates receive full public financing for the primary and the general elections. They qualify for funding by raising a high number of $5 qualifying contributions from voters in their districts or state. VOICE is not an attempt to patch up the current system, but instead is designed as an alternative to it. VOICE reform provides another way for candidates to finance their campaigns.
A similar law has already been enacted in Maine, Arizona, and Connecticut. New Jersey, New Mexico, North Carolina and Vermont have enacted the “clean money” option for some races.
VOICE has passed constitutional muster to date by working within the confines of the U.S. Supreme Court ruling known as Buckley v. Valeo (1976). The Buckley ruling states that government can place limits on the amount of money an individual or PAC can contribute to a candidate. However, government cannot place limits on spending UNLESS public financing is offered and the system is voluntary.
VOICE is funded with $10 million from unclaimed and abandoned properties in the custody of the State Treasurer’s office. In other words, it is not funded with tax money. Other funding sources include a $5 income tax check-off ($10 joint return), voluntary contributions to the VOICE Fund with up to a $200 tax deduction, unspent seed money, and qualifying contributions.
Funding measures of the bill take effect January 1, 2008. The VOICE option for candidates does not become effective until November 3, 2010, which gives the VOICE Fund ample time to collect enough funding to become self-sustaining.
Highlights of the bill are as follows:
• VOICE Fund is a separate fund within the State Treasurer’s Office. The State Treasurer is required to annually deposit $10 million into the VOICE fund from the proceeds derived from the sale of unclaimed property. If the proceeds from the sale of unclaimed property do not equal $10 million, the State Treasurer must transfer unclaimed utility deposit refunds to the VOICE Fund.
• Candidates apply to the Iowa Ethics and Campaign Finance Disclosure Board to become a VOICE candidate by collecting a set number of signatures and $5 contributions from registered voters in their district. The contributions are deposited into the VOICE Fund.
• Qualified political parties are those whose candidates received at least 20 percent of the total number of votes cast in the previous general election. (This weeds out nonviable third parties and their candidates).
• Requires that a nonpartisan voter information program and advisory council be established by the Ethics and Campaign Disclosure Board. The council is required to publish and distribute a voter information guide.
• The VOICE qualifying period begins 90 days before the primary election and ends 30 days before the primary election. It is during this 60 day window (March, April) that a candidate must obtain the necessary signatures and $5 contributions from registered voters to qualify.
• Participating candidate means a candidate on the ballot who qualifies for VOICE funding.
• Non participating candidate means a candidate who is on the ballot but has chosen to privately finance his/her campaign with individual contributions and PAC contributions, or a candidate who is on the ballot and has applied for but has not satisfied the requirements for receiving VOICE funding.
• Iowa Ethics and Campaign Finance Board (IECFB) has 5 days after receiving an application for VOICE funding to determine if a candidate has satisfied all of the requirements. If so, the IECFB provides the candidate with a debit card and a set amount of money is deposited into the candidate’s Campaign checking account.
• Allows a person to voluntarily contribute to the VOICE fund through a $5.00 checkoff on their income tax return.
• If the opponent of a VOICE candidate has decided to privately finance his/her campaign, a trigger is in place for the Iowa Ethics and Campaign Disclosure Board (IECDB) to release additional funds in the form of a dollar-for-dollar match up to 200% of the initial allocation to a VOICE candidate if any of the following occurs: the privately funded opponent exceeds the initial allocation, or money is spent by 527 committees or other independent groups to benefit the opponent. The IECDB will know when this is happening through additional reporting required by privately funded candidates as well as groups spending money independently.
• There is an exploratory period of 18 months (November through May). During this time, candidates decide if they will publicly or privately finance their campaign. Candidates can raise “seed” money during this time to cover any expenses associated with becoming qualified for VOICE. This is the only private money a candidate can spend. An individual cannot contribute more than $100 of “seed money” to a candidate. Candidates are limited to raising and spending seed money to become VOICE eligible as follows:
• Governor/Lt. Governor: $25,000
• Other Statewide offices: $15,000
• Iowa Senate: $ 2,000
• Iowa House: $ 1,000
• Political parties can contribute up to 5% of the initial allotment in cash or in-kind contributions to a VOICE candidate. In addition, political parties can provide a staff person to assist a candidate.
Contributors must be registered voters who reside within the candidate’s electoral district and who are eligible to vote for the candidate
VOICE funds to qualified primary election candidates; adjusted to CPI on 12/31
Office Funding Maximum
Governor/Lt. Governor $750,000 $1,500,000
Other Statewide $75,000 $150,000
Iowa Senate $22,500 $45,000
Iowa House $15,000 $30,000
VOICE funds to qualified General Election candidates
Office Funding Maximum
Governor/Lt. Governor $3,000,000 $6,000,000
Other Statewide $200,000 $400,000
Iowa Senate $40,000 $80,000
Iowa House $30,000 $60,000
Contributions Limits for Non-participating Candidates:
1. Candidates for statewide Office:
a. $1,000 in the aggregate per individual contribution.
b. $5,000 in the aggregate per political committee contribution.
2. Candidate for the Iowa Senate and House of Representatives;
a. $500 in the aggregate per individual contribution.
b. $1,000 in the aggregate per political committee contribution.