March 27, 2025
To all interested persons:
The Iowa Ethics and Campaign Disclosure Board issues this Advisory Opinion sua sponte pursuant to Iowa Code section 68B.32A(12) and Iowa Administrative Code rule 351-1.2(1).
We note at the outset that the Board’s jurisdiction is limited to the application of Iowa Code chapters 68A, 68B, and rules in Iowa Administrative Code chapter 351. Advice in a Board advisory opinion, if followed, constitutes a defense to a subsequent complaint based on the same facts and circumstances.
QUESTION POSED
Are limited liability companies (LLCs) required to register as political committees (PACs) if they contribute more than $1,000 in a calendar year?
OPINION
Iowa Code section 68A.503 prohibits campaign contributions from various entities including corporations, insurance companies, and banks. However, there is an exception for LLCs which permits them to directly contribute to campaigns. Despite the exception allowing for direct contributions to campaign committees, LLCs are not absolved from other requirements in Iowa Code chapter 68A which govern those spending to influence Iowa elections.
Iowa Code section 68A.102 defines a "political committee" (commonly referred to as a PAC) as “any person, other than an individual, that makes expenditures in excess of $1,000 in the aggregate to expressly advocate the nomination, election, or defeat of candidates, or to expressly advocate the passage or defeat of a ballot issue.”[1] As written, this definition does not include any exception for LLCs.
Therefore, LLCs that contribute an amount exceeding the $1,000 threshold must comply with the routine reporting requirements of Iowa Code chapter 68A, including filing a statement of organization and regular campaign disclosure reports.
BY DIRECTION AND VOTE OF THE BOARD:
James Albert, Chair
Elaine Olson, Vice Chair
Jonathan Roos
Daniel Jessop
Leah Rodenberg
SUBMITTED BY:
Zachary S. Goodrich, Executive Director and Legal Counsel
ISSUED ON:
March 27, 2025
Pursuant to Iowa Administrative rule 351-1.3(3), a person who has received a board opinion may, within 30 days after the issuance of the opinion, request modification or reconsideration of the opinion. A request for modification or reconsideration shall be deemed denied unless the board acts upon the request within 60 days of receipt of the request. Pursuant to Iowa Administrative rule 351-1.3(6), a person who has received a board opinion or advice may petition for a declaratory order pursuant to Iowa Code section 17A.9. The Board will refuse to issue a declaratory order to a person who has previously received a board opinion on the same question, unless the requestor demonstrates a significant change in circumstances from those in the board opinion.
[1]Iowa Code section 68A.102 defines “person” as “... without limitation, any individual, corporation, government or governmental subdivision or agency, business trust, estate, trust, partnership or association, labor union, or any other legal entity.”The Iowa Ethics and Campaign Disclosure Board issues this Advisory Opinion sua sponte pursuant to Iowa Code section 68B.32A(12) and Iowa Administrative Code rule 351-1.2(1).
We note at the outset that the Board’s jurisdiction is limited to the application of Iowa Code chapters 68A, 68B, Iowa Code section 8.7, and rules in Iowa Administrative Code chapter 351. Advice in a Board advisory opinion, if followed, constitutes a defense to a subsequent complaint based on the same facts and circumstances.