House File 2791 - Introduced HOUSE FILE BY COMMITTEE ON APPROPRIATIONS (SUCCESSOR TO HF 2784) (SUCCESSOR TO HF 2670) (SUCCESSOR TO HF 2004) Passed House, Date Passed Senate, Date Vote: Ayes Nays Vote: Ayes Nays Approved A BILL FOR 1 An Act concerning community foundations and economic development 2 relating to the endow Iowa tax credit, the allocation of 3 gambling tax revenues, the distribution of county endowment 4 moneys, making an appropriation, and providing an effective 5 date. 6 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 7 TLSB 5566HW 81 8 ec/je/5 PAG LIN 1 1 Section 1. Section 15E.305, subsection 2, unnumbered 1 2 paragraph 1, Code Supplement 2005, is amended to read as 1 3 follows: 1 4 The aggregate amount of tax credits authorized pursuant to 1 5 this section shall not exceed a total of two million dollars 1 6 plus such additional credit amount as provided by this section 1 7 annually. The maximum amount of tax credits granted to a 1 8 taxpayer shall not exceed five percent of the aggregate amount 1 9 of tax credits authorized. 1 10 Sec. 2. Section 15E.305, subsection 2, Code Supplement 1 11 2005, is amended by adding the following new unnumbered 1 12 paragraph: 1 13 NEW UNNUMBERED PARAGRAPH. For purposes of this subsection, 1 14 the additional credit amount shall be an amount for each 1 15 applicable calendar year determined by the department of 1 16 revenue equal to the amount of money credited as provided by 1 17 section 99F.11, subsection 3, paragraph "e", subparagraph (3), 1 18 for the prior fiscal year. 1 19 Sec. 3. Section 15E.305, subsection 4, Code Supplement 1 20 2005, is amended by striking the subsection. 1 21 Sec. 4. Section 15E.311, subsection 3, paragraph a, Code 1 22 Supplement 2005, is amended to read as follows: 1 23 a. At the end of each fiscal year, moneys in the fund 1 24 shall be transferred into separate accounts within the fund 1 25 and designated for use by each county in which no licensee 1 26 authorized to conduct gambling games under chapter 99F was 1 27 located during that fiscal year. Moneys transferred to county 1 28 accounts shall be divided equally among the counties. Moneys 1 29 transferred into an account for a county shall be transferred 1 30 by the department to an eligible county recipient for that 1 31 county. Of the moneys transferred, an eligible county 1 32 recipient shall distribute seventy=five percent of the moneys 1 33 as grants to charitable organizations for charitable purposes 1 34 in that county and shall retain twenty=five percent of the 1 35 moneys for use in establishing a permanent endowment fund for 2 1 the benefit of charitable organizations for charitable 2 2 purposes. Of the amounts distributed, eligible county 2 3 recipients shall give special consideration to grants for 2 4 projects that include significant vertical infrastructure 2 5 components designed to enhance quality of life aspects within 2 6 local communities. 2 7 Sec. 5. Section 15E.311, subsection 6, Code Supplement 2 8 2005, is amended to read as follows: 2 9 6. Three percent of the moneys deposited in the county 2 10 endowment fund shall be used by the lead philanthropic 2 11 organization identified by the department pursuant to section 2 12 15E.304 for purposes of administering and marketing the county 2 13 endowment fund. Of the amounts available to be used by the 2 14 lead philanthropic organization pursuant to this subsection, 2 15 seventy thousand dollars is appropriated to the department of 2 16 economic development each fiscal year for administrative costs 2 17 related to the endow Iowa program. 2 18 Sec. 6. Section 99F.11, subsection 3, paragraphs d and e, 2 19 Code 2005, are amended to read as follows: 2 20 d.One=halfEight=tenths of one percent of the adjusted 2 21 gross receipts tax shall be deposited in the county endowment 2 22 fund created in section 15E.311. 2 23 e. Two=tenths of one percent of the adjusted gross 2 24 receipts tax shall be allocated each fiscal year as follows: 2 25 (1) Five hundred twenty thousand dollars is appropriated 2 26 each fiscal year to the department of cultural affairs with 2 27 one=half of the moneys allocated for operational support 2 28 grants and the remaining one=half allocated for the community 2 29 cultural grants program established under section 303.3. 2 30 (2) One=half of the moneys remaining after the 2 31 appropriation in subparagraph (1) is appropriated to the 2 32 community development division of the department of economic 2 33 development for the purposes of regional tourism marketing. 2 34 However, none of the moneys appropriated under this 2 35 subparagraph shall be used for administrative purposes. 3 1 (3) One=half of the moneys remaining after the 3 2 appropriation in subparagraph (1) shall be credited to the 3 3 general fund of the state for the purpose of funding the endow 3 4 Iowa tax credit provided in section 15E.305. 3 5 f. The remaining amount of the adjusted gross receipts tax 3 6 shall be credited to the general fund of the state. 3 7 Sec. 7. 2003 Iowa Acts, 1st Extraordinary Session, chapter 3 8 2, section 93, is amended to read as follows: 3 9 SEC. 93. The divisions of this Act designated economic 3 10 development appropriations, workforce=related issues, loan and 3 11 credit guarantee fund, university=based research utilization 3 12 program appropriation,endow Iowa tax credit,and 3 13 rehabilitation project tax credits are repealed effective June 3 14 30, 2010. 3 15 Sec. 8. EFFECTIVE DATE. This Act takes effect July 1, 3 16 2007. 3 17 EXPLANATION 3 18 This bill concerns the endow Iowa tax credit and the 3 19 distribution of gambling tax revenues collected from excursion 3 20 gambling boats and racetracks. 3 21 Code section 15E.305, concerning the endow Iowa tax credit, 3 22 is amended. The bill increases the aggregate amount of tax 3 23 credits authorized in a calendar year by an amount equal to 3 24 the amount generated for this purpose from a distribution of 3 25 gambling tax revenues generated in the prior fiscal year. The 3 26 bill eliminates the provision ending this tax credit after 3 27 December 31, 2008. The bill also eliminates the repeal of the 3 28 Code provisions concerning the endow Iowa tax credit that 3 29 would have occurred on June 30, 2010. 3 30 Code section 15E.311 is amended to provide that eligible 3 31 county recipients receiving money from the county endowment 3 32 fund shall consider grants for projects that include vertical 3 33 infrastructure components designed to enhance the quality of 3 34 life within local communities. In addition, the section is 3 35 amended to provide that of the three percent of moneys 4 1 deposited in the fund and available to be used by the lead 4 2 philanthropic organization for administrative costs, $70,000 4 3 is appropriated to the department of economic development for 4 4 its administrative costs for the endow Iowa program. 4 5 Code section 99F.11, subsection 3, concerning the 4 6 distribution of gambling tax revenues from gambling games at 4 7 excursion gambling boats and racetracks, is amended. Current 4 8 law provides that one=half of 1 percent of tax revenues shall 4 9 be deposited in the county endowment fund. The bill increases 4 10 this percentage to eight=tenths of 1 percent. The bill also 4 11 provides that two=tenths of 1 percent of tax revenues is 4 12 allocated as follows, with $520,000 appropriated to the 4 13 department of cultural affairs and split equally between 4 14 operational support grants and the community cultural grants 4 15 program. Of the remaining moneys derived from the two=tenths 4 16 of 1 percent, one=half is appropriated to the community 4 17 development division of the department of economic development 4 18 for regional tourism marketing and one=half shall be credited 4 19 to the general fund of the state for the purposes of funding 4 20 the endow Iowa tax credit. 4 21 The bill takes effect July 1, 2007. 4 22 LSB 5566HW 81 4 23 ec:rj/je/5