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Senate File 2303

Partial Bill History

Bill Text

PAG LIN
  1  1    Section 1.  Section 303.1A, Code 2001, is amended by adding
  1  2 the following new subsection:
  1  3    NEW SUBSECTION.  6.  Administer the Iowa cultural trust as
  1  4 provided in chapter 303A and do all of the following:
  1  5    a.  Develop and adopt by rule criteria for the issuance of
  1  6 trust fund credits by measuring the efforts of qualified
  1  7 organizations, as defined in section 303A.3, to increase their
  1  8 endowment or other resources for the promotion of the arts,
  1  9 history, or the sciences and humanities in Iowa.  If the
  1 10 director determines that the organizations have increased the
  1 11 amount of their endowment and other resources, the director
  1 12 shall certify the amount of increase in the form of trust fund
  1 13 credits to the treasurer, who shall deposit in the Iowa
  1 14 cultural trust fund, from moneys received for purposes of the
  1 15 trust fund as provided in section 303A.4, subsection 2, an
  1 16 amount equal to the trust fund credits.  If the amount of the
  1 17 trust fund credits issued by the director exceeds the amount
  1 18 of moneys available to be deposited in the trust fund as
  1 19 provided in section 303A.4, subsection 2, the outstanding
  1 20 trust fund credits shall not expire but shall be available to
  1 21 draw down additional moneys which become available to be
  1 22 deposited in the trust fund as provided in section 303A.4,
  1 23 subsection 2.
  1 24    b.  Develop and implement, in accordance with chapter 303A,
  1 25 a grant application process for grants issued to qualified
  1 26 organizations as defined in section 303A.3.
  1 27    c.  Develop and adopt by rule criteria for the approval of
  1 28 Iowa cultural trust grants.  The criteria shall include, but
  1 29 shall not be limited to, the future stability and
  1 30 sustainability of a qualified organization and a requirement
  1 31 that the qualified organization employ at least one paid staff
  1 32 member.
  1 33    d.  Compile, in consultation with the Iowa arts council and
  1 34 the state historical society of Iowa, a list of grant
  1 35 applications recommended for funding in accordance with the
  2  1 amount available for distribution as provided in section
  2  2 303A.6, subsection 3.  The list of recommended grant
  2  3 applications shall be submitted to the Iowa cultural trust
  2  4 board of trustees for approval.
  2  5    e.  Monitor the allocation and use of grant moneys by
  2  6 qualified organizations to determine whether moneys are used
  2  7 in accordance with the provisions of this subsection and
  2  8 chapter 303A.  The director shall annually submit the
  2  9 director's findings and recommendations in a report to the
  2 10 Iowa cultural trust board of trustees prior to final board
  2 11 action in approving grants for the next succeeding fiscal
  2 12 year.
  2 13    Sec. 2.  NEW SECTION.  303A.1  SHORT TITLE.
  2 14    This chapter shall be known and may be cited as the "Iowa
  2 15 Cultural Trust Act".
  2 16    Sec. 3.  NEW SECTION.  303A.2  LEGISLATIVE FINDINGS.
  2 17    The general assembly finds and declares that cultural
  2 18 organizations generate millions of dollars in economic
  2 19 activity in Iowa; attract people to live and work in Iowa's
  2 20 communities, contribute to a revitalization of those
  2 21 communities; are a magnet for tourists; train minds for the
  2 22 creative economy jobs of the future; and build social capital.
  2 23 However, these organizations are often undercapitalized.
  2 24 Therefore, to bring financial stability to these organizations
  2 25 through fluctuating economic conditions, it is the intent of
  2 26 the general assembly that a public trust be established the
  2 27 income from which shall be made available to supplement the
  2 28 operating budgets of nonprofit cultural organizations that
  2 29 meet certain criteria, including a commitment to strategies to
  2 30 attain long-term financial stability and sustainability.
  2 31    Sec. 4.  NEW SECTION.  303A.3  DEFINITIONS.
  2 32    For purposes of this chapter, unless the context otherwise
  2 33 requires:
  2 34    1.  "Board" means the board of trustees of the Iowa
  2 35 cultural trust created in section 303A.5.
  3  1    2.  "Department" means the department of cultural affairs
  3  2 created in section 303.1.
  3  3    3.  "Director" means the director of the department of
  3  4 cultural affairs.
  3  5    4.  "Grant account" means the Iowa cultural trust grant
  3  6 account created in section 303A.7.
  3  7    5.  "Qualified organization" means a tax-exempt, nonprofit
  3  8 organization whose primary mission is to promote the arts,
  3  9 history, or the sciences and humanities in Iowa.
  3 10    6.  "Trust fund" means the Iowa cultural trust fund created
  3 11 in section 303A.4.
  3 12    Sec. 5.  NEW SECTION.  303A.4  IOWA CULTURAL TRUST AND
  3 13 TRUST FUND.
  3 14    1.  The Iowa cultural trust is created as a public body
  3 15 corporate organized for the purposes, with the powers, and
  3 16 subject to the restrictions, set forth in this chapter.
  3 17    2.  An Iowa cultural trust fund is created in the office of
  3 18 the treasurer of state for the purpose of receiving moneys
  3 19 appropriated by the general assembly and any other moneys
  3 20 available to the trust fund due to the issuance of trust fund
  3 21 credits by the director as provided in section 303.1A,
  3 22 subsection 6.
  3 23    3.  The trust fund may also receive any devise, gift,
  3 24 bequest, donation, or federal or other grant from any person,
  3 25 firm, partnership, or corporation.
  3 26    4.  The treasurer of state shall act as custodian of the
  3 27 fund, shall invest moneys in the trust fund, and shall
  3 28 transfer the interest attributable to the investment of trust
  3 29 fund moneys to the grant account created in section 303A.7.
  3 30 The trust fund's principal shall not be used or accessed by
  3 31 the department or the board for any purpose.
  3 32    5.  Notwithstanding section 8.33, moneys remaining in the
  3 33 trust fund at the end of the fiscal year shall be retained in
  3 34 the trust fund.  Notwithstanding section 12C.7, subsection 2,
  3 35 interest or earnings on investments or time deposits of the
  4  1 moneys in the trust fund shall be credited to the trust fund.
  4  2    Sec. 6.  NEW SECTION.  303A.5  BOARD OF TRUSTEES.
  4  3    1.  A board of trustees of the Iowa cultural trust is
  4  4 created.  The general responsibility for the proper operation
  4  5 of the trust is vested in the board of trustees, which shall
  4  6 consist of thirteen members as follows:
  4  7    a.  Nine public members, five of whom shall be appointed by
  4  8 the governor, subject to confirmation by the senate.  The
  4  9 majority leader of the senate, the minority leader of the
  4 10 senate, the speaker of the house, and the minority leader of
  4 11 the house of representatives shall each appoint one public
  4 12 member.  A public member of the board appointed in accordance
  4 13 with this section shall not also serve concurrently as a
  4 14 member of the state historical society board of trustees or
  4 15 the Iowa state arts council.
  4 16    b.  Four ex officio, nonvoting members, consisting of the
  4 17 treasurer of state or the treasurer's designee, the director
  4 18 of the department of cultural affairs or the director's
  4 19 designee, the chairperson of the state historical society
  4 20 board of trustees elected pursuant to section 303.6, and the
  4 21 chairperson of the Iowa state arts council designated pursuant
  4 22 to section 303.86.
  4 23    2.  Members appointed by the general assembly shall be
  4 24 appointed to two-year terms.  The public members appointed by
  4 25 the governor shall serve five-year staggered terms beginning
  4 26 and ending as provided in section 69.19.  Vacancies on the
  4 27 board shall be filled for the unexpired portion of the term in
  4 28 the same manner as the original appointments.
  4 29    3.  Members appointed by the governor are subject to the
  4 30 requirements of sections 69.16, 69.16A, and 69.19.
  4 31    4.  Public members shall serve without compensation, but
  4 32 shall be reimbursed for all actual and necessary expenses they
  4 33 incur through service on the board.
  4 34    5.  The board shall elect a chairperson and vice
  4 35 chairperson from among its membership.  The board shall meet
  5  1 at the call of its chairperson or upon written request of a
  5  2 majority of its voting members.  Five voting members
  5  3 constitute a quorum.  The concurrence of a majority of the
  5  4 voting members of a board is required to take any action
  5  5 relating to its duties.
  5  6    6.  The board shall be located for administrative purposes
  5  7 within the department.  The department, subject to approval by
  5  8 the board, shall adopt administrative rules pursuant to
  5  9 chapter 17A necessary to administer the income derived from
  5 10 the Iowa cultural trust fund and to perform specific powers
  5 11 and duties as provided in section 303A.6.  The director shall
  5 12 budget funds to pay the expenses of the board and administer
  5 13 this chapter.
  5 14    Sec. 7.  NEW SECTION.  303A.6  BOARD OF TRUSTEES – POWERS
  5 15 AND DUTIES.
  5 16    The board shall do any or all of the following:
  5 17    1.  Enter into agreements with any qualified organization,
  5 18 the state, or any federal or other state agency, or other
  5 19 entity as required to administer this chapter.
  5 20    2.  Approve or disapprove the grants recommended for
  5 21 approval by the director, in consultation with the Iowa arts
  5 22 council and the state historical society of Iowa, in
  5 23 accordance with section 303.1A, subsection 6, paragraph "c".
  5 24 The board may delete any recommendation, but shall not add to
  5 25 or otherwise amend the list of recommended grants.
  5 26    3.  Upon approving a grant, the board shall certify to the
  5 27 treasurer of state the amount of financial assistance payable
  5 28 from the trust account to the qualified organization whose
  5 29 grant application is approved.
  5 30    4.  Determine, in consultation with the treasurer of state,
  5 31 the amount of investment income attributable to the trust fund
  5 32 that will be available for distribution as grants to qualified
  5 33 organizations.
  5 34    5.  Accept any devise, gift, bequest, donation, or federal
  5 35 or other grant from any person, firm, partnership, or
  6  1 corporation, which the treasurer of state shall deposit into
  6  2 the trust fund.
  6  3    Sec. 8.  NEW SECTION.  303A.7  IOWA CULTURAL TRUST ACCOUNT.
  6  4    1.  An Iowa cultural trust grant account is created in the
  6  5 office of the treasurer under the control of the board to
  6  6 receive interest attributable to the investment of trust fund
  6  7 moneys as required by section 303A.4, subsection 4.  The
  6  8 moneys in the grant account are appropriated to the board for
  6  9 purposes of the Iowa cultural trust created in section 303A.4.
  6 10 Moneys in the grant account shall not be subject to
  6 11 appropriation for any other purpose by the general assembly,
  6 12 but shall be used only for the purposes of the Iowa cultural
  6 13 trust.  The treasurer of state shall act as custodian of the
  6 14 grant account and disburse moneys contained in the grant
  6 15 account as directed by the board.  The board shall make
  6 16 expenditures from the grant account consistent with the
  6 17 purposes of the Iowa cultural trust.
  6 18    2.  Moneys in the grant account are not subject to section
  6 19 8.33.  Notwithstanding section 12C.7, subsection 2, interest
  6 20 or earnings on moneys in the grant account shall be credited
  6 21 to the grant account.
  6 22    3.  For the fiscal period beginning July 1, 2003, and
  6 23 ending June 30, 2005, the board shall use moneys in the grant
  6 24 account for a statewide educational program to promote
  6 25 participation in, expanded support of, and local endowment
  6 26 building for, Iowa nonprofit arts, history, and sciences and
  6 27 humanities organizations.
  6 28    Sec. 9.  INITIAL APPOINTMENTS.  The governor's initial
  6 29 public appointments to the board of trustees of the Iowa
  6 30 cultural trust created in section 303A.5, as enacted in this
  6 31 Act, shall be made as follows:
  6 32    1.  One member to a one-year term.
  6 33    2.  Two members to three-year terms.
  6 34    3.  Two members to five-year terms.  
  6 35                           EXPLANATION
  7  1    This bill creates an Iowa cultural trust, a trust fund, and
  7  2 a grant account.  Interest from any moneys in the Iowa
  7  3 cultural trust fund will be used for an educational program to
  7  4 promote support of local endowment building and to encourage
  7  5 continuing support for qualified organizations in the first
  7  6 two years of the trust's existence, and thereafter must be
  7  7 used to issue grant moneys to qualified organizations in the
  7  8 state.
  7  9    As provided in the bill, it is the intent of the general
  7 10 assembly to establish a public trust, the income from which
  7 11 shall be used to supplement the operating budgets of nonprofit
  7 12 cultural organizations.  The intent language provides that
  7 13 organizations must demonstrate a commitment to strategies to
  7 14 attain long-term financial stability and sustainability.
  7 15    The bill establishes the Iowa cultural trust as a public
  7 16 body corporate and creates a trust fund in the office of the
  7 17 state treasurer.  Moneys shall not be deposited by the
  7 18 treasurer of state into the trust fund until the director of
  7 19 the department of cultural affairs determines that qualified
  7 20 cultural organizations have demonstrated the required increase
  7 21 in local endowment and resource efforts and notifies the
  7 22 treasurer of that fact.  The sum of moneys deposited
  7 23 correlates to the increase in local effort demonstrated.  The
  7 24 bill directs the treasurer of state to transfer only the
  7 25 interest accrued on moneys in the trust fund to the Iowa
  7 26 cultural trust grant account, which is under the control of
  7 27 the board of trustees of the Iowa cultural trust.
  7 28    The bill creates the board of trustees of the Iowa cultural
  7 29 trust and gives it general responsibility for the proper
  7 30 operation of the trust.  The board consists of nine public
  7 31 voting and four ex officio, nonvoting members.  Five of the
  7 32 voting members are public members appointed by the governor,
  7 33 subject to confirmation by the senate.  The remaining four
  7 34 voting members shall be appointed by senate and house of
  7 35 representatives leaders.  Public members will be reimbursed
  8  1 for their expenses, but they must serve without compensation.
  8  2 The bill provides for their initial, staggered appointments.
  8  3    The bill directs the board to enter into any necessary
  8  4 agreements and to approve or disapprove the grantee list
  8  5 recommended by the director of the department of cultural
  8  6 affairs, but prohibits the board from adding to the list.  The
  8  7 director must compile the grantee list in consultation with
  8  8 the Iowa arts council and the state historical society of
  8  9 Iowa.
  8 10    The board shall be located for administrative purposes
  8 11 within the department of cultural affairs.  The director of
  8 12 the department must budget funds to pay the expenses of the
  8 13 board and to administer the chapter.  The director is also
  8 14 required to develop and implement a grant application process,
  8 15 develop and adopt by rule criteria for grant approval, and
  8 16 monitor the allocation and use of grant moneys by qualified
  8 17 organizations.  
  8 18 LSB 5737XS 79
  8 19 kh/cls/14
     

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