Senate Study Bill 1248 SENATE FILE BY (PROPOSED COMMITTEE ON LOCAL GOVERNMENT BILL BY CO=CHAIRPERSON QUIRMBACH) Passed Senate, Date Passed House, Date Vote: Ayes Nays Vote: Ayes Nays Approved A BILL FOR 1 An Act providing for payroll deduction for county, city, and 2 school district employees for charitable giving. 3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 4 TLSB 2087XC 81 5 ec/pj/5 PAG LIN 1 1 Section 1. NEW SECTION. 279.60 CHARITABLE GIVING PAYROLL 1 2 DEDUCTION. 1 3 1. The board of directors of a school district may 1 4 authorize deductions from the salaries or wages of school 1 5 district employees of an amount specified by an employee for 1 6 payment to an eligible charitable organization. The 1 7 authorization by an employee for deductions from the 1 8 employee's salary or wages shall be evidenced by a written 1 9 request signed by the employee directed to and filed with the 1 10 treasurer, or official in charge of the payroll system, of the 1 11 school district and the treasurer or responsible official 1 12 shall deduct from the salary or wages of the employee the 1 13 amount specified for payment to the eligible charitable 1 14 organization. The request for the deduction may be withdrawn 1 15 by the employee at any time by filing a written notification 1 16 of withdrawal with the applicable treasurer or responsible 1 17 official in charge of the payroll system. 1 18 2. If a board of directors authorizes deductions from the 1 19 salaries or wages of their employees for payment to any 1 20 eligible charitable organization, the board shall ensure that 1 21 an employee shall be permitted to authorize a deduction to any 1 22 eligible charitable organization. 1 23 3. For purposes of this section, "eligible charitable 1 24 organization" means a not=for=profit federation of health and 1 25 human services, social welfare, or environmental agencies or 1 26 associations that meets all of the following conditions: 1 27 a. The federation is tax exempt under section 501(c)(3) of 1 28 the Internal Revenue Code and contributions to the federation 1 29 are deductible under section 170 of the Internal Revenue Code. 1 30 b. The federation has had an office in this state for the 1 31 last five years. 1 32 c. The federation represents at least ten health and human 1 33 services, social welfare, or environmental agencies or 1 34 associations that are located in this state. 1 35 d. The federation is governed by an active, voluntary 2 1 board, which exercises administrative control over the 2 2 federation. 2 3 e. The federation is not a charitable foundation. 2 4 f. The federation is registered with the secretary of 2 5 state's office. 2 6 Sec. 2. NEW SECTION. 331.326 CHARITABLE GIVING PAYROLL 2 7 DEDUCTION == COUNTY AND TOWNSHIP EMPLOYEES. 2 8 1. The county board of supervisors may authorize 2 9 deductions from the salaries or wages of county and township 2 10 employees of an amount specified by an officer or employee for 2 11 payment to an eligible charitable organization. The 2 12 authorization by an employee for deductions from the 2 13 employee's salary or wages shall be evidenced by a written 2 14 request signed by the employee directed to and filed with the 2 15 treasurer, or official in charge of the payroll system, of the 2 16 county and the treasurer or responsible official shall deduct 2 17 from the salary or wages of the employee the amount specified 2 18 for payment to the eligible charitable organization. The 2 19 request for the deduction may be withdrawn by the employee at 2 20 any time by filing a written notification of withdrawal with 2 21 the applicable treasurer or responsible official in charge of 2 22 the payroll system. 2 23 2. If a county board of supervisors authorizes deductions 2 24 from the salaries or wages of their employees for payment to 2 25 any eligible charitable organization, the board shall ensure 2 26 that an employee shall be permitted to authorize a deduction 2 27 to any eligible charitable organization. 2 28 3. For purposes of this section, "eligible charitable 2 29 organization" means a not=for=profit federation of health and 2 30 human services, social welfare, or environmental agencies or 2 31 associations that meets all of the following conditions: 2 32 a. The federation is tax exempt under section 501(c)(3) of 2 33 the Internal Revenue Code and contributions to the federation 2 34 are deductible under section 170 of the Internal Revenue Code. 2 35 b. The federation has had an office in this state for the 3 1 last five years. 3 2 c. The federation represents at least ten health and human 3 3 services, social welfare, or environmental agencies or 3 4 associations that are located in this state. 3 5 d. The federation is governed by an active, voluntary 3 6 board, which exercises administrative control over the 3 7 federation. 3 8 e. The federation is not a charitable foundation. 3 9 f. The federation is registered with the secretary of 3 10 state's office. 3 11 Sec. 3. NEW SECTION. 364.26 CHARITABLE GIVING PAYROLL 3 12 DEDUCTION == CITY EMPLOYEES. 3 13 1. The governing body of a city may authorize deductions 3 14 from the salaries or wages of city employees of an amount 3 15 specified by an employee for payment to an eligible charitable 3 16 organization. The authorization by an employee for deductions 3 17 from the employee's salary or wages shall be evidenced by a 3 18 written request signed by the employee directed to and filed 3 19 with the treasurer, or official in charge of the payroll 3 20 system, of the city and the treasurer or responsible official 3 21 shall deduct from the salary or wages of the employee the 3 22 amount specified for payment to the eligible charitable 3 23 organization. The request for the deduction may be withdrawn 3 24 by the employee at any time by filing a written notification 3 25 of withdrawal with the applicable treasurer or responsible 3 26 official in charge of the payroll system. 3 27 2. If the governing body of a city authorizes deductions 3 28 from the salaries or wages of city employees for payment to 3 29 any eligible charitable organization, the applicable governing 3 30 body shall ensure that an employee shall be permitted to 3 31 authorize a deduction to any eligible charitable organization. 3 32 3. For purposes of this section, "eligible charitable 3 33 organization" means a not=for=profit federation of health and 3 34 human services, social welfare, or environmental agencies or 3 35 associations that meets all of the following conditions: 4 1 a. The federation is tax exempt under section 501(c)(3) of 4 2 the Internal Revenue Code and contributions to the federation 4 3 are deductible under section 170 of the Internal Revenue Code. 4 4 b. The federation has had an office in this state for the 4 5 last five years. 4 6 c. The federation represents at least ten health and human 4 7 services, social welfare, or environmental agencies or 4 8 associations that are located in this state. 4 9 d. The federation is governed by an active, voluntary 4 10 board, which exercises administrative control over the 4 11 federation. 4 12 e. The federation is not a charitable foundation. 4 13 f. The federation is registered with the secretary of 4 14 state's office. 4 15 EXPLANATION 4 16 This bill provides that a school district, city, or county 4 17 can authorize deductions from the wages of county and city 4 18 employees for payment to an eligible charitable organization. 4 19 If a school district, county, or city authorizes payroll 4 20 deductions, the bill provides that an employee shall be 4 21 permitted to authorize a deduction to any eligible charitable 4 22 organization. The bill provides that the authorization by an 4 23 employee for a payroll deduction shall be by a written request 4 24 signed by the employee directed to and filed with the 4 25 treasurer or official in charge of the payroll system. The 4 26 bill provides that the request for the deduction may be 4 27 withdrawn at any time by filing a written notification of 4 28 withdrawal. The bill defines an eligible charitable 4 29 organization as a not=for=profit federation of health and 4 30 human services, social welfare, or environmental agencies or 4 31 associations that is tax exempt under section 501(c)(3) of the 4 32 Internal Revenue Code, has had an office in Iowa for the last 4 33 five years, represents at least 10 health and human services, 4 34 social welfare, or environmental agencies or associations that 4 35 are located in this state, is governed by an active, voluntary 5 1 board, is not a charitable foundation, and is registered with 5 2 the secretary of state's office. 5 3 LSB 2087XC 81 5 4 ec:rj/pj/5