Senate Study Bill 3232 - Introduced SENATE FILE _____ BY (PROPOSED COMMITTEE ON WAYS AND MEANS BILL BY CHAIRPERSON BOLKCOM) A BILL FOR An Act providing an Iowa individual income tax checkoff for an 1 American red cross natural disaster relief fund for Iowa 2 chapters, making an appropriation, providing for the Act’s 3 implementation, and including effective date and retroactive 4 applicability provisions. 5 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 6 TLSB 5974XC (2) 83 ak/sc

S.F. _____ Section 1. NEW SECTION . 29C.8B American red cross natural 1 disaster relief fund for Iowa chapters. 2 1. An American red cross natural disaster relief fund for 3 Iowa chapters is created in the office of the treasurer under 4 the control of the homeland security and emergency management 5 division of the department of public defense. The fund is 6 composed of moneys appropriated or available to and obtained 7 or accepted by the treasurer of the state for deposit in the 8 fund. The fund shall include moneys transferred to the fund 9 as provided in section 422.12F, and moneys in the form of a 10 devise, gift, bequest, donation, or federal or other grant 11 intended to be used for the purposes of the fund. 12 2. Notwithstanding section 12C.7, subsection 2, all 13 interest or earnings on moneys in the fund shall be credited to 14 and remain in the fund. Section 8.33 does not apply to moneys 15 in the fund. 16 3. Moneys in the fund that are authorized by the division 17 for expenditure are appropriated, and shall be used, for annual 18 distributions to Iowa chapters of the American red cross 19 solely for the purposes of natural disaster relief within the 20 state. Natural disaster relief includes but is not limited to 21 emergency food, shelter, and clothing for victims of a natural 22 disaster. 23 Sec. 2. NEW SECTION . 422.12F Income tax checkoff for 24 American red cross natural disaster relief fund for Iowa 25 chapters. 26 1. A person who files an individual or a joint income tax 27 return with the department of revenue under section 422.13 may 28 designate one dollar or more to be paid to the American red 29 cross natural disaster relief fund for Iowa chapters as created 30 in section 29C.8B. If the refund due on the return or the 31 payment remitted with the return is insufficient to pay the 32 additional amount designated by the taxpayer to the American 33 red cross natural disaster relief fund for Iowa chapters, the 34 amount designated shall be reduced to the remaining amount of 35 -1- LSB 5974XC (2) 83 ak/sc 1/ 3

S.F. _____ refund or the remaining amount remitted with the return. The 1 designation of a contribution to the American red cross natural 2 disaster relief fund for Iowa chapters under this section is 3 irrevocable. 4 2. The director of revenue shall draft the income tax form 5 to allow the designation of contributions to the American red 6 cross natural disaster relief fund for Iowa chapters on the 7 tax return. The department of revenue, on or before January 8 31, shall transfer the total amount designated on the tax 9 return forms due in the preceding calendar year to the American 10 red cross natural disaster relief fund for Iowa chapters. 11 However, before a checkoff pursuant to this section shall be 12 permitted, all liabilities on the books of the department of 13 administrative services and accounts identified as owing under 14 section 8A.504 and the political contribution allowed under 15 section 68A.601 shall be satisfied. 16 3. The homeland security and emergency management division 17 may authorize payment of moneys from the American red cross 18 natural disaster relief fund for Iowa chapters in accordance 19 with section 29C.8B. 20 4. The department of revenue shall adopt rules to administer 21 this section. 22 5. This section is subject to repeal under section 422.12E. 23 Sec. 3. IMPLEMENTATION. The income tax checkoff created 24 in this Act shall be eligible for placement on the individual 25 income tax return form beginning for the tax year commencing 26 January 1, 2010, provided the conditions for placement on the 27 return form set out in section 422.12E are met. 28 Sec. 4. RETROACTIVE APPLICABILITY. The section of this Act 29 enacting section 422.12F applies retroactively to January 1, 30 2010, for tax years beginning on or after that date. 31 Sec. 5. EFFECTIVE UPON ENACTMENT. This Act, being deemed of 32 immediate importance, takes effect upon enactment. 33 EXPLANATION 34 This bill provides that taxpayers filing individual or joint 35 -2- LSB 5974XC (2) 83 ak/sc 2/ 3

S.F. _____ income tax returns will be allowed to designate $1 or more on 1 the return form to be paid to the American red cross natural 2 disaster relief fund for Iowa chapters. The bill creates the 3 fund in the office of the treasurer under the purview of the 4 homeland security and emergency management division of the 5 department of public defense. The bill requires the department 6 of revenue to annually remit moneys collected from the checkoff 7 to the fund. Moneys in the fund shall be used solely for the 8 purposes of natural disaster relief within the state. Natural 9 disaster relief includes but is not limited to emergency food, 10 shelter, and clothing for victims of a natural disaster. 11 The bill provides that the checkoff is eligible for 12 placement on the individual income tax return form for the tax 13 year beginning January 1, 2010, and is subject to repeal under 14 Code section 422.12E. 15 The bill is effective upon enactment. The section of the 16 bill enacting the income tax checkoff applies retroactively to 17 January 1, 2010, for tax years beginning on or after that date. 18 -3- LSB 5974XC (2) 83 ak/sc 3/ 3