HF 635 (LSB 2411YH (2) 85)

HOUSE FILE 635

BY  KELLEY

A BILL FOR

An Act providing for an Iowa individual income tax checkoff for qualified nonprofit food banks and making an appropriation.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  NEW SECTION.  234.5  Iowa food bank fund.
   1.  An Iowa food bank fund is created in the state treasury under the control of the division of child and family services of the department of human services. The fund is composed of moneys appropriated or available to and obtained or accepted by the treasurer of state for deposit in the fund. The fund shall include moneys transferred to the fund as provided in section 422.12I. Notwithstanding section 12C.7, subsection 2, interest or earnings on moneys in the fund shall be credited to and remain in the fund. Section 8.33 does not apply to moneys in the fund.
   2.  Moneys in the fund are appropriated to the department of human services to provide grants to nonprofit food banks in the state. To be qualified to receive a grant from the Iowa food bank fund, a nonprofit food bank must be primarily located in Iowa and must primarily serve Iowa residents. The division of child and family services may authorize payment of moneys from the fund upon approval of an application from a nonprofit food bank in the state.
   3.  For purposes of this section, “nonprofit food bank” means an organization qualifying under section 501(c)(3) of the Internal Revenue Code as an organization exempt from federal income tax under section 501(a) of the Internal Revenue Code that maintains an established operation involving the provision of food or edible commodities or the products thereof on a regular basis to persons in need or to food pantries, soup kitchens, hunger relief centers, or other food or feeding centers that, as an integral part of their normal activities, provide meals or food on a regular basis to persons in need.
   4.  The department shall establish rules relating to the application process.
    Sec. 2.  NEW SECTION.  422.12I  Income tax checkoff for Iowa food bank fund.
   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 Iowa food bank fund created in section 234.5. If the refund due on the return or the payment remitted with the return is insufficient to pay the additional amount designated by the taxpayer to the Iowa food bank fund, the amount designated shall be reduced to the remaining amount of refund or the remaining amount remitted with the return. The designation of a contribution to the Iowa food bank fund under this section is irrevocable.
   2.  The director of revenue shall draft the income tax form to allow the designation of contributions to the Iowa food bank fund on the tax return. The department of revenue, on or before January 31, shall transfer the total amount designated on the tax return forms due in the preceding calendar year to the Iowa food bank fund. However, before a checkoff pursuant to this section shall be permitted, all liabilities on the books of the department of administrative services and accounts identified as owing under section 8A.504 and the political contribution allowed under section 68A.601 shall be satisfied.
   3.  The department of human services may authorize payment of moneys from the Iowa food bank fund, in accordance with section 234.5.
   4.  The department of revenue shall adopt rules to administer this section.
   5.  This section is subject to repeal under section 422.12E.
EXPLANATION
   This bill provides that taxpayers filing individual income tax returns will be allowed to designate $1 or more on the return to be paid to the Iowa food bank fund. The bill creates the Iowa food bank fund in the state treasury under the control of the child and family services division of the department of human services. The bill requires the department of revenue to annually remit moneys collected from the checkoff to the fund. Moneys in the fund shall be used to provide grants to nonprofit food banks that submit an application for funding. To qualify for a grant, a nonprofit food bank must be primarily located in Iowa and must primarily serve Iowa residents. “Nonprofit food bank” is defined in the bill.
   The bill provides that the checkoff is subject to Code section 422.12E, which allows no more than four checkoffs on the individual tax return form and provides for the automatic repeal of the two checkoffs receiving the least in contributions over a two-year period.