S.F. 314 Section 1. NEW SECTION . 135.39D Type 1 diabetes research 1 fund. 2 1. A type 1 diabetes research fund is created in the state 3 treasury under the control of the department with the goal 4 of improving the health of the citizens of Iowa by promoting 5 and supporting research to cure, treat, and prevent type 6 1 diabetes, also known as juvenile diabetes. The fund is 7 composed of moneys transferred to the fund as provided in 8 section 422.12I. Section 8.33 does not apply to moneys in the 9 fund. 10 2. Moneys in the fund are appropriated, and shall be used, 11 to provide grants to nonprofit organizations in Iowa that 12 support or engage in research to cure, treat, and prevent type 13 1 diabetes. In awarding grants, the department shall give 14 priority to those organizations with a mission and purpose the 15 same as or substantially similar to that of JDRF International, 16 also known as the Juvenile Diabetes Research Foundation 17 International. However, before a grant is awarded to a 18 nonprofit organization pursuant to this section, the director 19 shall ensure that it meets all the following criteria: 20 a. The organization qualifies under section 501(c)(3) of the 21 Internal Revenue Code as an organization exempt from federal 22 income tax under section 501(a) of the Internal Revenue Code. 23 b. The organization is in good standing and licensed to 24 do business in this state and, if different, in its state of 25 incorporation. 26 c. The organization is not currently delinquent in filing 27 any tax return with this state and does not have delinquent 28 accounts, charges, fees, loans, taxes, or other indebtedness 29 owed to this state or a political subdivision of this state. 30 Sec. 2. NEW SECTION . 422.12I Income tax checkoff for type 1 31 diabetes research fund. 32 1. A person who files an individual or a joint income tax 33 return with the department of revenue under section 422.13 may 34 designate one dollar or more to be paid to the type 1 diabetes 35 -1- LSB 1645XS (2) 85 mm/sc 1/ 3

S.F. 314 research fund created in section 135.39D. If the refund due 1 on the return or the payment remitted with the return is 2 insufficient to pay the additional amount designated by the 3 taxpayer to the type 1 diabetes research fund, the amount 4 designated shall be reduced to the remaining amount remitted 5 with the return. The designation of a contribution to the type 6 1 diabetes research fund under this section is irrevocable. 7 2. The director of revenue shall draft the income tax 8 form to allow the designation of contributions to the type 1 9 diabetes research fund on the tax return. The department of 10 revenue, on or before January 31, shall transfer the total 11 amount designated on the tax return forms due in the preceding 12 calendar year to the type 1 diabetes research fund. 13 3. The department of revenue shall adopt rules to administer 14 this section. 15 4. This section is subject to repeal under section 422.12E. 16 EXPLANATION 17 This bill provides that taxpayers filing individual income 18 tax returns will be allowed to designate $1 or more on the 19 return to be paid to the type 1 diabetes research fund. The 20 bill creates the type 1 diabetes research fund in the state 21 treasury under the control of the department of public health. 22 The bill requires the department of revenue to annually remit 23 moneys collected from the checkoff to the fund. Moneys in the 24 fund are appropriated to the department of health to provide 25 grants to nonprofit organizations in Iowa that support or 26 engage in research to cure, treat, and prevent type 1 diabetes. 27 The department of health is required to give priority to 28 organizations with a mission and purpose the same as or 29 substantially similar to that of JDRF International (Juvenile 30 Diabetes Research Foundation International). 31 However, before the department of public health makes 32 any grant to an organization, it shall ensure that it is a 33 qualified 501(c)(3) nonprofit organization exempt from federal 34 income tax under section 501(a) of the Internal Revenue Code, 35 -2- LSB 1645XS (2) 85 mm/sc 2/ 3

S.F. 314 that the organization is in good standing and licensed to 1 do business in this state and, if different, its state of 2 incorporation, and that the organization is not currently 3 delinquent in filing any tax return with this state and 4 does not have delinquent accounts, charges, fees, loans, 5 taxes, or other indebtedness owed this state or its political 6 subdivisions. 7 The bill provides for the implementation of the checkoff 8 according to Code section 422.12E, which allows no more 9 than four checkoffs on the individual income tax return form 10 and provides for the automatic repeal of the two checkoffs 11 receiving the least in contributions over a two-year period. 12 -3- LSB 1645XS (2) 85 mm/sc 3/ 3