Bill Text: IA SF2247 | 2021-2022 | 89th General Assembly | Introduced
Bill Title: A bill for an act relating to the trading and holding of certain securities by members of the general assembly and their spouses and including applicability provisions.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2022-02-09 - Subcommittee: Nunn, Giddens, and Koelker. S.J. 252. [SF2247 Detail]
Download: Iowa-2021-SF2247-Introduced.html
Senate
File
2247
-
Introduced
SENATE
FILE
2247
BY
NUNN
A
BILL
FOR
An
Act
relating
to
the
trading
and
holding
of
certain
1
securities
by
members
of
the
general
assembly
and
their
2
spouses
and
including
applicability
provisions.
3
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
4
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Section
1.
NEW
SECTION
.
68B.41
Definitions.
1
For
purposes
of
this
subchapter,
unless
the
context
requires
2
otherwise:
3
1.
“Blind
trust”
means
a
trust
established
by
or
for
the
4
benefit
of
a
member
of
the
general
assembly
or
the
member’s
5
spouse
for
divestiture
of
all
control
and
knowledge
of
assets.
6
A
trust
qualifies
as
a
blind
trust
if
the
member
of
the
7
general
assembly
and
the
member’s
spouse
has
no
knowledge
of
8
the
holdings
and
sources
of
income
of
the
trust,
the
trustee
9
is
independent
of
and
is
not
associated
with,
employed
by,
10
or
related
to
the
member
of
the
general
assembly
or
the
11
member’s
spouse,
and
the
trustee
has
sole
discretion
as
to
the
12
management
of
the
trust
assets.
13
2.
a.
“Covered
financial
instrument”
means
any
of
the
14
following:
15
(1)
An
investment
in
a
security
or
security
future
as
each
16
is
defined
in
section
3(a)
of
the
federal
Securities
Exchange
17
Act
of
1934.
18
(2)
A
commodity
as
defined
in
section
1a
of
the
federal
19
Commodity
Exchange
Act.
20
(3)
Any
economic
interest
comparable
to
an
instrument
21
described
in
subparagraph
(1)
or
(2)
acquired
through
synthetic
22
means,
such
as
the
use
of
a
derivate,
including
an
option,
23
warrant,
or
other
similar
means.
24
b.
“Covered
financial
instrument”
does
not
mean
any
of
the
25
following:
26
(1)
A
diversified
mutual
fund.
27
(2)
A
diversified
exchange-traded
fund.
28
(3)
A
United
States
treasury
bill,
note,
or
bond.
29
3.
“Ethics
committee”
means
the
senate
ethics
committee
or
30
house
ethics
committee,
as
applicable.
31
4.
“Newly
elected
member”
means
a
member
of
the
general
32
assembly
who
was
not
a
member
of
the
immediately
preceding
33
general
assembly.
34
Sec.
2.
NEW
SECTION
.
68B.42
Holding
or
trading
covered
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financial
instruments
——
prohibition.
1
1.
Except
as
provided
in
subsection
2,
a
member
of
the
2
general
assembly
or
the
member’s
spouse
shall
not,
during
a
3
regular
or
extraordinary
session
of
the
general
assembly,
hold,
4
purchase,
or
sell
a
covered
financial
instrument.
5
2.
Subsection
1
shall
not
apply
to
any
of
the
following:
6
a.
A
newly
elected
member
of
the
general
assembly
or
the
7
member’s
spouse
until
seven
days
after
the
member
has
taken
the
8
oath
of
office.
9
b.
A
covered
financial
instrument
held
in
a
blind
trust
or
10
purchased
or
sold
by
the
trustee
of
the
blind
trust.
11
Sec.
3.
NEW
SECTION
.
68B.43
Penalties.
12
1.
A
member
of
the
general
assembly
or
the
member’s
spouse
13
shall
disgorge
to
the
department
of
revenue
any
profit
from
a
14
transaction
or
holding
involving
a
covered
financial
instrument
15
that
violates
this
subchapter
for
deposit
in
the
general
fund.
16
2.
A
loss
from
a
transaction
or
holding
involving
a
covered
17
financial
instrument
that
violates
this
subchapter
shall
not
18
be
deducted
from
the
amount
of
income
tax
the
member
of
the
19
general
assembly
or
the
member’s
spouse
owes
to
this
state.
20
3.
If
a
member
of
the
general
assembly
or
the
member’s
21
spouse
holds
or
conducts
a
transaction
that
violates
this
22
subchapter,
the
ethics
committee
may
hold
a
hearing
and
the
23
member
may
be
subject
to
additional
punishment
under
the
24
applicable
code
of
ethics.
25
Sec.
4.
NEW
SECTION
.
68B.44
Certification
of
compliance
——
26
audits.
27
1.
Annually,
not
later
than
seven
days
after
the
convening
28
of
the
regular
session,
each
member
of
the
general
assembly
29
shall
file
with
the
chief
clerk
of
the
house
or
the
secretary
30
of
the
senate,
as
applicable,
a
written
certification
that
the
31
member
and
the
member’s
spouse
are
in
compliance
with
this
32
subchapter.
The
filed
certifications
shall
be
published
on
the
33
general
assembly’s
internet
site
in
a
searchable
database.
34
2.
The
board
shall
audit
each
member
of
the
general
assembly
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for
compliance
with
this
subchapter
every
two
years.
The
board
1
shall
submit
to
the
ethics
committee
the
results
of
the
audits.
2
The
board
may
adopt
rules
to
administer
this
subsection.
3
Sec.
5.
Section
422.7,
Code
2022,
is
amended
by
adding
the
4
following
new
subsection:
5
NEW
SUBSECTION
.
51.
Add,
to
the
extent
excluded,
the
6
ordinary
or
capital
loss
realized
by
the
taxpayer
in
a
7
transaction
that
violates
section
68B.43,
subsection
2.
8
Sec.
6.
CODE
EDITOR
DIRECTIVE.
The
Code
editor
shall
9
designate
sections
68B.41
through
68B.44,
as
enacted
in
this
10
Act,
as
a
new
subchapter
in
chapter
68B.
11
Sec.
7.
APPLICABILITY.
This
Act
applies
beginning
with
the
12
first
regular
session
of
the
Ninetieth
General
Assembly.
13
EXPLANATION
14
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
15
the
explanation’s
substance
by
the
members
of
the
general
assembly.
16
This
bill
relates
to
the
trading
and
holding
of
certain
17
securities
by
members
of
the
general
assembly
and
their
18
spouses.
19
The
bill
prohibits
a
member
of
the
general
assembly
or
the
20
member’s
spouse
from
trading
or
holding
certain
securities
21
while
the
general
assembly
is
in
session.
The
bill
does
22
not
prohibit
the
trading
or
holding
of
diversified
mutual
23
funds,
diversified
exchange-traded
funds,
or
United
States
24
treasury
bills,
notes,
or
bonds.
In
addition,
the
bill
does
25
not
prohibit
the
trading
or
holding
of
securities
that
the
26
member
or
member’s
spouse
has
placed
into
a
blind
trust.
Under
27
the
bill,
a
blind
trust
is
a
trust
established
by
or
for
the
28
benefit
of
the
member
or
the
member’s
spouse
for
divestiture
29
of
all
control
and
knowledge
of
assets.
To
qualify,
the
30
member
and
the
member’s
spouse
cannot
have
any
knowledge
of
31
the
holdings
and
sources
of
income
of
the
trust,
the
trustee
32
must
be
independent
of
and
not
associated
with,
employed
by,
or
33
related
to
the
member
or
the
member’s
spouse,
and
the
trustee
34
must
have
sole
discretion
as
to
the
management
of
the
trust
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assets.
1
If
a
member
or
a
member’s
spouse
violates
the
provisions
2
of
the
bill,
any
gain
from
a
transaction
is
disgorged
to
the
3
department
of
revenue
for
transfer
to
the
general
fund.
If
4
the
transaction
results
in
a
loss,
the
member
and
the
member’s
5
spouse
cannot
deduct
the
loss
from
their
state
income
taxes.
6
The
senate
or
house
ethics
committee,
as
applicable,
may
impose
7
additional
punishment
under
the
applicable
code
of
ethics
for
8
violations
of
the
bill.
9
The
bill
requires
members
of
the
general
assembly
to
10
annually
file
with
the
chief
clerk
of
the
house
or
the
11
secretary
of
the
senate,
as
applicable,
a
written
certification
12
that
the
member
and
the
member’s
spouse
are
in
compliance
with
13
the
bill.
The
filed
certifications
must
be
published
on
the
14
general
assembly’s
internet
site
in
a
searchable
database.
15
The
bill
requires
the
Iowa
ethics
and
campaign
disclosure
16
board
to
audit
each
member
of
the
general
assembly
for
17
compliance
with
the
bill
every
two
years
and
to
submit
to
18
the
ethics
committee
the
results
of
the
audits.
The
bill
19
authorizes
the
board
to
adopt
rules
to
administer
this
20
requirement.
21
The
bill
applies
beginning
with
the
first
regular
session
of
22
the
90th
General
Assembly.
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