Iowa Admin. Code r. 351-4.47 - Permitted activity-reimbursement required
The prohibitions against certain transactions between corporate entities and candidates or committees expressly advocating the election or defeat of candidates contained in Iowa Code section 68A.503 and in rule 351-4.44 (68A,68B) are not construed to prohibit activity that occurs consistent with this rule.
(1)
Purchase or rental of office facility. A candidate's committee
or any other committee that expressly advocates the election or defeat of a
candidate may purchase or rent property belonging to a corporate entity, so
long as the purchase or rental is at fair market value. For the purpose of this
subrule, "fair market value" means the amount that a member of the general
public would expect to pay to purchase or rent a similar property within the
community in which the property is located.
(2)
Use of corporate facilities to
produce or mail materials. Any person who uses the facilities of a
corporate entity to produce or mail materials in connection with a candidate
election is required to reimburse the corporate entity within a commercially
reasonable time for the normal and usual charge for producing or mailing such
materials in the commercial market. For example, if it would otherwise cost 10
cents per page to have a brochure copied at a commercial printer, the corporate
entity must be reimbursed at 10 cents per page even if the overhead and
operating cost is only 5 cents per page. Likewise, the corporate entity must be
reimbursed at the first-class mail rate even if the direct cost to the
corporate entity is less through the use of its bulk mail permit. This subrule
does not affect the ability of a commercial vendor to charge an amount for
postage which is less than for first-class mail where the reduced or bulk mail
charge is available to all similarly situated customers without respect to the
political identity of the customer
(3)
Use or rental of corporate
facilities by other persons. Persons other than stockholders,
administrative officers or employees of a corporate entity who make any use of
corporate facilities, such as using telephones, facsimile machines, typewriters
or computers or borrowing office furniture for activity in connection with a
candidate election, are required to reimburse the corporate entity within a
commercially reasonable time in the amount of the normal and usual rental
charge. If one or more telephones of a corporate entity are used as a telephone
bank, a rebuttable presumption is established that $3 per telephone per hour,
plus any actual long distance charges, is acceptable as a normal and usual
rental charge.
(4)
Use of
airplanes and other means of transportation.
a.
Air travel. A candidate,
candidate's agent, or person traveling on behalf of a candidate who uses
noncommercial air transportation made available by a corporate entity shall, in
advance, reimburse the corporate entity as follows:
(1) Where the destination is served by
regularly scheduled commercial service, the coach class airfare (without
discounts).
(2) Where the
destination is not served by a regularly scheduled commercial service, the
usual charter rate.
b.
Other transportation. A candidate, candidate's agent, or
person traveling on behalf of a candidate who uses other means of
transportation made available by a corporate entity shall, within a
commercially reasonable time, reimburse the corporate entity at the normal and
usual rental charge.
(5)
Equal access not required. For the purpose of this rule, it is
not necessary that the corporate entity be in the business of selling or
renting the property, good or service to the general public; further, it is not
necessary that the corporate entity provide access to the same property, good
or service to other candidates or committees.
(6)
Commercially reasonable
time. For the purpose of this rule, a rebuttable presumption is
established that reimbursement to the corporate entity within ten business days
is acceptable as within a commercially reasonable time.
(7)
Loans and debts. A
financial institution may make a loan to a candidate or candidate's committee
so long as the loan is repaid and all proper public disclosure of the
transaction is made pursuant to rule
351-4.18 (68A,68B). A candidate
or candidate's committee may owe a debt to an insurance company, financial
institution, or corporation so long as the debt is repaid and all proper public
disclosure of the transaction is made pursuant to rule
351-4.16 (68A,68B). The
repayment of a loan or debt under this subrule shall be made prior to the
dissolution of the committee pursuant to rule
351-4.57 (68A,68B).
This rule is intended to implement Iowa Code section 68A.503.
Notes
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