SENATE FILE _____

BY  (PROPOSED COMMITTEE ON STATE GOVERNMENT BILL BY CHAIRPERSON DANIELSON)

A BILL FOR

An Act authorizing the Iowa state fair board to establish an endowment fund to receive gifts in trust dedicated to the maintenance and improvement of the Iowa state fairgrounds.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

   Section 1.  Section 22.7, subsection 52, paragraph a, unnumbered paragraph 1, Code 2011, is amended to read as follows:
   The following records relating to a charitable donation made to a foundation acting solely for the support of an institution governed by the state board of regents, to the board of the Iowa state fair foundation when the record relates to a gift for deposit in or expenditure from the Iowa state fairgrounds trust fund as provided in section 173.22A, to a foundation acting solely for the support of an institution governed by chapter 260C, to a private foundation as defined in section 509 of the Internal Revenue Code organized for the support of a government body, or to an endow Iowa qualified community foundation, as defined in section 15E.303, organized for the support of a government body:
   Sec. 2.  Section 173.11, subsection 3, Code 2011, is amended to read as follows:
   3.  Administer the funds foundation fund under the control of the Iowa state fair foundation, in its capacity as the board of the Iowa state fair foundation, as directed by the board and. The treasurer shall administer the fund in accordance with procedures of the treasurer of state, and maintain a correct account of receipts and disbursements of assets of the foundation fund.
   Sec. 3.  Section 173.14, subsection 11, Code 2011, is amended to read as follows:
   11.  Administer the Iowa state fair foundation created in section 173.22 in its capacity as the board of the Iowa state fair foundation.
   a.  In administering The board shall administer the foundation the board shall authorize fund by authorizing all payments from the foundation fund. The board on behalf of the foundation fund may contract, sue and be sued, and adopt rules necessary to carry out the provisions of this subsection, but the board in administering the foundation fund shall not in any manner, directly or indirectly, pledge the credit of the state.
   b.  The board shall administer the Iowa state fairgrounds trust fund as trustees of an institutional endowment fund as provided in section 173.22A.
   Sec. 4.  Section 173.22, Code 2011, is amended to read as follows:
   173.22  Iowa state fair foundation —— foundation fund.
   1.  An Iowa state fair foundation is established under the authority of the Iowa state fair board.
   2.  A foundation fund is created within the state treasury composed of moneys appropriated or available to and obtained or accepted by the foundation. The foundation fund shall include moneys credited to the fund as provided in section 422.12D.
   3.  The foundation may solicit or accept gifts, including donations and bequests. A gift, to the greatest extent possible, shall be used according to the expressed desires of the person providing the gift.
   4.  Assets of Moneys in the foundation fund shall be used to support foundation activities, including foundation administration, or capital projects or major maintenance improvements at the Iowa state fairgrounds or to property under the control of the board.
   5.
  a.  Foundation moneys credited to the foundation fund may be expended on a matching basis with public moneys or Iowa state fair authority receipts. All interest earned on moneys in the foundation fundor through other foundation assets shall be credited to and remain in the fund. Section 8.33 does not apply to moneys in the fund.
   b.  The auditor of state shall conduct regular audits of the foundation fund and shall make a certified report relating to the condition of thefoundation and the foundation fund to the treasurer of the state, and to the treasurer and secretary of the state fair board.
   Sec. 5.  NEW SECTION.  173.22A  Iowa state fairgrounds trust fund.
   1.  An Iowa state fairgrounds trust fund is created as an endowment fund under the authority and in the custody of the Iowa state fair board in its capacity as the board of the Iowa state fair foundation. The Iowa state fairgrounds trust fund is not part of the state treasury. The fund shall be composed exclusively of gifts accepted by the board in trust from private donors or testators. The board may accept these gifts in trust and shall fulfill its duties as trustee of gifts accepted notwithstanding section 633.63. The trust beneficiaries shall include all future attendees of events held on the Iowa state fairgrounds. The fund shall be an endowment fund to be used exclusively for the maintenance and improvement of the Iowa state fairgrounds and for no other purpose. The board shall decline any gifts not consistent with these purposes.
   2.  Moneys in the Iowa state fairgrounds trust fund shall not be deposited in the state treasury, but shall be held separate and apart from both the state fair’s operating moneys and the state fair foundation fund established in section 173.22. The board as trustee shall hold only legal title to these moneys, which shall not form any part of the general fund of the state. The moneys shall not be subject to appropriation by the general assembly or subject to transfer pursuant to chapter 8. The moneys are not and shall not be deemed public funds for any purpose. The fund shall be an institutional endowment fund within the meaning of and subject to chapter 540A. The fund shall not be subject to audit by the auditor of state, but shall be audited annually by a certified public accountant. The annual audit shall be delivered to the auditor of state, who may include it in any further report that the auditor of state deems appropriate. However, an annual audit shall be a confidential record to the extent required in section 22.7, subsection 52. The moneys may be held in perpetuity, subject to the provisions for release or modification of restrictions on the moneys as provided in chapter 540A.
   Sec. 6.  Section 422.12D, subsections 1 and 2, Code 2011, are amended to read as follows:
   1.  A person who files an individual or a joint income tax return with the department of revenue under section 422.13 may designate one dollar or more to be paid to the foundation fund of the Iowa state fair foundation as established in section 173.22. If the refund due on the return or the payment remitted with the return is insufficient to pay the amount designated by the taxpayer to theIowa state fair foundation fund, the amount designated shall be reduced to the remaining amount of the refund or the remaining amount remitted with the return. The designation of a contribution to theIowa state fair foundation fund under this section is irrevocable.
   2.  The director of revenue shall draft the income tax form to allow the designation of contributions to theIowa state fair foundation fund on the tax return. The department, on or before January 31, shall transfer the total amount designated on the tax form due in the preceding year to the foundation fund created pursuant to section 173.22.
EXPLANATION
   This bill creates an endowment trust fund known as the Iowa state fairgrounds trust fund to be held by the Iowa state fair board in its capacity as the Iowa state foundation board of directors (a tax-exempt charitable organization under section 501(c)(3) of the Internal Revenue Code). The bill requires that moneys in the fund must be used exclusively for the maintenance and improvement of the Iowa state fairgrounds. The fund must be held in perpetuity for the benefit of all fairgoers and attendees of events at the state fairgrounds. The fund must be composed exclusively of gifts accepted by the board in trust from private donors or testators for deposit into this fund. This fund is not part of the state treasury, and is not subject to appropriation by the general assembly or transfer by the department of management. Instead, the fund is governed by Code chapter 540A (the “Uniform Prudent Management of Institutional Funds Act”). Records in possession of the fair board that disclose a donor’s or prospective donor’s personal information are confidential under Code chapter 22 governing Iowa’s open records.