House File 533 - Introduced HOUSE FILE 533 BY COMMITTEE ON STATE GOVERNMENT (SUCCESSOR TO HSB 139) A BILL FOR An Act authorizing the Iowa state fair board to establish an 1 endowment fund to receive gifts in trust dedicated to the 2 maintenance and improvement of the Iowa state fairgrounds. 3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 4 TLSB 2668HV (1) 84 da/rj

H.F. 533 Section 1. Section 22.7, subsection 52, paragraph a, 1 unnumbered paragraph 1, Code 2011, is amended to read as 2 follows: 3 The following records relating to a charitable donation made 4 to a foundation acting solely for the support of an institution 5 governed by the state board of regents, to the board of the 6 Iowa state fair foundation when the record relates to a gift 7 for deposit in or expenditure from the Iowa state fairgrounds 8 trust fund as provided in section 173.22A, to a foundation 9 acting solely for the support of an institution governed by 10 chapter 260C , to a private foundation as defined in section 11 509 of the Internal Revenue Code organized for the support of 12 a government body, or to an endow Iowa qualified community 13 foundation, as defined in section 15E.303 , organized for the 14 support of a government body: 15 Sec. 2. Section 173.11, subsection 3, Code 2011, is amended 16 to read as follows: 17 3. Administer the funds foundation fund under the control of 18 the Iowa state fair foundation , in its capacity as the board 19 of the Iowa state fair foundation, as directed by the board 20 and . The treasurer shall administer the fund in accordance 21 with procedures of the treasurer of state, and maintain a 22 correct account of receipts and disbursements of assets of the 23 foundation fund . 24 Sec. 3. Section 173.14, subsection 11, Code 2011, is amended 25 to read as follows: 26 11. Administer the Iowa state fair foundation created in 27 section 173.22 in its capacity as the board of the Iowa state 28 fair foundation . 29 a. In administering The board shall administer the 30 foundation the board shall authorize fund by authorizing all 31 payments from the foundation fund. The board on behalf of the 32 foundation fund may contract, sue and be sued, and adopt rules 33 necessary to carry out the provisions of this subsection , but 34 the board in administering the foundation fund shall not in any 35 -1- LSB 2668HV (1) 84 da/rj 1/ 5

H.F. 533 manner, directly or indirectly , pledge the credit of the state. 1 b. The board shall administer the Iowa state fairgrounds 2 trust fund as trustees of an institutional endowment fund as 3 provided in section 173.22A. 4 Sec. 4. Section 173.22, Code 2011, is amended to read as 5 follows: 6 173.22 Iowa state fair foundation —— foundation fund . 7 1. An Iowa state fair foundation is established under the 8 authority of the Iowa state fair board. 9 2. A foundation fund is created within the state treasury 10 composed of moneys appropriated or available to and obtained or 11 accepted by the foundation. The foundation fund shall include 12 moneys credited to the fund as provided in section 422.12D . 13 3. The foundation may solicit or accept gifts, including 14 donations and bequests. A gift, to the greatest extent 15 possible, shall be used according to the expressed desires of 16 the person providing the gift. 17 4. Assets of Moneys in the foundation fund shall be 18 used to support foundation activities, including foundation 19 administration, or capital projects or major maintenance 20 improvements at the Iowa state fairgrounds or to property under 21 the control of the board. 22 5. a. Foundation moneys credited to the foundation fund 23 may be expended on a matching basis with public moneys or Iowa 24 state fair authority receipts. All interest earned on moneys 25 in the foundation fund or through other foundation assets shall 26 be credited to and remain in the fund. Section 8.33 does not 27 apply to moneys in the fund. 28 b. The auditor of state shall conduct regular audits of the 29 foundation fund and shall make a certified report relating to 30 the condition of the foundation and the foundation fund to the 31 treasurer of the state, and to the treasurer and secretary of 32 the state fair board. 33 Sec. 5. NEW SECTION . 173.22A Iowa state fairgrounds trust 34 fund. 35 -2- LSB 2668HV (1) 84 da/rj 2/ 5

H.F. 533 1. An Iowa state fairgrounds trust fund is created as an 1 endowment fund under the authority and in the custody of the 2 Iowa state fair board in its capacity as the board of the 3 Iowa state fair foundation. The Iowa state fairgrounds trust 4 fund is not part of the state treasury. The fund shall be 5 composed exclusively of gifts accepted by the board in trust 6 from private donors or testators. The board may accept these 7 gifts in trust and shall fulfill its duties as trustee of 8 gifts accepted notwithstanding section 633.63. The trust 9 beneficiaries shall include all future attendees of events 10 held on the Iowa state fairgrounds. The fund shall be an 11 endowment fund to be used exclusively for the maintenance and 12 improvement of the Iowa state fairgrounds and for no other 13 purpose. The board shall decline any gifts not consistent with 14 these purposes. 15 2. Moneys in the Iowa state fairgrounds trust fund shall not 16 be deposited in the state treasury, but shall be held separate 17 and apart from both the state fair’s operating moneys and the 18 state fair foundation fund established in section 173.22. The 19 board as trustee shall hold only legal title to these moneys, 20 which shall not form any part of the general fund of the state. 21 The moneys shall not be subject to appropriation by the general 22 assembly or subject to transfer pursuant to chapter 8. The 23 moneys are not and shall not be deemed public funds for any 24 purpose. The fund shall be an institutional endowment fund 25 within the meaning of and subject to chapter 540A. The fund 26 shall not be subject to audit by the auditor of state, but 27 shall be audited annually by a certified public accountant. 28 The annual audit shall be delivered to the auditor of state, 29 who may include it in any further report that the auditor of 30 state deems appropriate. However, an annual audit shall be a 31 confidential record to the extent required in section 22.7, 32 subsection 52. The moneys may be held in perpetuity, subject 33 to the provisions for release or modification of restrictions 34 on the moneys as provided in chapter 540A. 35 -3- LSB 2668HV (1) 84 da/rj 3/ 5

H.F. 533 Sec. 6. Section 422.12D, subsections 1 and 2, Code 2011, are 1 amended to read as follows: 2 1. A person who files an individual or a joint income tax 3 return with the department of revenue under section 422.13 4 may designate one dollar or more to be paid to the foundation 5 fund of the Iowa state fair foundation as established in 6 section 173.22 . If the refund due on the return or the payment 7 remitted with the return is insufficient to pay the amount 8 designated by the taxpayer to the Iowa state fair foundation 9 fund , the amount designated shall be reduced to the remaining 10 amount of the refund or the remaining amount remitted with the 11 return. The designation of a contribution to the Iowa state 12 fair foundation fund under this section is irrevocable. 13 2. The director of revenue shall draft the income tax form 14 to allow the designation of contributions to the Iowa state 15 fair foundation fund on the tax return. The department, on or 16 before January 31, shall transfer the total amount designated 17 on the tax form due in the preceding year to the foundation 18 fund created pursuant to section 173.22 . 19 EXPLANATION 20 This bill creates an endowment trust fund known as the Iowa 21 state fairgrounds trust fund to be held by the Iowa state fair 22 board in its capacity as the Iowa state foundation board of 23 directors (a tax-exempt charitable organization under section 24 501(c)(3) of the Internal Revenue Code). The bill requires 25 that moneys in the fund must be used exclusively for the 26 maintenance and improvement of the Iowa state fairgrounds. 27 The fund must be held in perpetuity for the benefit of all 28 fairgoers and attendees of events at the state fairgrounds. 29 The fund must be composed exclusively of gifts accepted by the 30 board in trust from private donors or testators for deposit 31 into this fund. This fund is not part of the state treasury, 32 and is not subject to appropriation by the general assembly or 33 transfer by the department of management. Instead, the fund is 34 governed by Code chapter 540A (the “Uniform Prudent Management 35 -4- LSB 2668HV (1) 84 da/rj 4/ 5

H.F. 533 of Institutional Funds Act”). Records in possession of the 1 fair board that disclose a donor’s or prospective donor’s 2 personal information are confidential under Code chapter 22 3 governing Iowa’s open records. 4 -5- LSB 2668HV (1) 84 da/rj 5/ 5