Senate Study Bill 1141 - Introduced SENATE FILE _____ BY (PROPOSED COMMITTEE ON EDUCATION BILL BY CHAIRPERSON QUIRMBACH) A BILL FOR An Act authorizing the college student aid commission to 1 organize a nonprofit corporation to provide Iowans with 2 postsecondary educational financial assistance. 3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 4 TLSB 1363XC (1) 85 kh/sc
S.F. _____ Section 1. NEW SECTION . 261.8 Corporation for educational 1 financial assistance. 2 1. Nonprofit corporation for receiving and disbursing 3 funds. The college student aid commission may organize a 4 corporation under the provisions of chapter 504 that qualifies 5 under section 501(c)(3) of the Internal Revenue Code as an 6 organization exempt from taxation for the purpose of receiving 7 and disbursing funds from public or private sources to be used 8 to provide Iowans with educational financial assistance under 9 programs administered by the commission. Unless otherwise 10 provided in this section, the corporation is subject to the 11 provisions of chapter 504. 12 2. Incorporators. The incorporators of the corporation 13 organized pursuant to this section shall be the chairperson of 14 the commission, the executive director of the commission, and 15 a member of the commission selected by a majority vote of the 16 commission. 17 3. Board of directors. The board of directors of the 18 corporation organized pursuant to this section shall be the 19 members of the commission appointed under section 261.1, 20 subsection 2, paragraph “d” , or their successors in office. 21 4. Accepting grants in aid. The corporation organized 22 pursuant to this section may accept grants of money or property 23 from the federal government or private sources and may upon 24 its own order use its money, property, or other resources for 25 purposes of providing educational financial assistance under 26 programs administered by the commission. 27 5. Open meetings and open records. The corporation is 28 subject to chapters 21 and 22. 29 6. Status. The corporation shall collaborate with the 30 commission for the purposes specified in this section, but the 31 corporation shall not be considered, in whole or in part, an 32 agency, department, or administrative unit of the state. The 33 corporation shall not receive appropriations from the general 34 assembly. Except as provided in subsection 5, the corporation 35 -1- LSB 1363XC (1) 85 kh/sc 1/ 3
S.F. _____ shall not be required to comply with any requirements that 1 apply to a state agency, department, or administrative unit and 2 shall not exercise any sovereign power of the state. 3 7. No state liability. The corporation does not have 4 authority to pledge the credit of the state, and the state 5 shall not be liable for the debts or obligations of the 6 corporation. All debts and obligations of the corporation 7 shall be payable solely from the corporation’s funds. 8 8. Tax deductible. The corporation shall be established 9 so that donations and bequests to it qualify as tax deductible 10 under state income tax laws and under section 501(c)(3) of the 11 Internal Revenue Code. 12 9. Staffing and administrative support. The commission 13 shall provide staff assistance and administrative support to 14 the corporation. 15 10. Report. The corporation shall submit by January 15 16 annually a written report of its activities and operations to 17 the governor, the general assembly, and the commission. 18 EXPLANATION 19 This bill authorizes the college student aid commission to 20 organize a corporation under Iowa’s revised Iowa nonprofit 21 corporation Act that qualifies under section 501(c)(3) of 22 the Internal Revenue Code as a tax-exempt organization. The 23 corporation must be organized for the purpose of receiving and 24 disbursing funds from public or private sources to be used to 25 provide Iowans with educational financial assistance under 26 programs administered by the college student aid commission in 27 accordance with Code chapter 261. 28 The incorporators of the corporation shall be the 29 chairperson of the commission, the executive director of the 30 commission, and a member of the commission selected by a 31 majority vote of the commission. The board of directors of 32 the corporation shall be the eight members of the commission 33 appointed by the governor or their successors in office. 34 The corporation may accept grants of money or property 35 -2- LSB 1363XC (1) 85 kh/sc 2/ 3
S.F. _____ from the federal government or private sources and may upon 1 its own order use its money, property, or other resources for 2 purposes of providing educational financial assistance under 3 programs administered by the college student aid commission in 4 accordance with Code chapter 261. 5 The corporation is subject to the open meetings and open 6 records laws in Code chapters 21 and 22, but the corporation 7 shall not otherwise be required to comply with any requirements 8 that apply to a state agency, department, or administrative 9 unit and shall not exercise any sovereign power of the state. 10 The corporation shall collaborate with the commission for the 11 purposes specified in the bill, but shall not be considered an 12 agency, department, or administrative unit of the state, nor 13 shall it receive appropriations from the general assembly. The 14 corporation shall be established so that donations and bequests 15 to it qualify as tax deductible under federal and state income 16 tax laws. 17 The corporation does not have authority to pledge the credit 18 of the state, and the state shall not be liable for the debts or 19 obligations of the corporation. 20 The commission shall provide staff assistance and 21 administrative support to the corporation. The corporation 22 shall submit a written report annually of its activities and 23 operations to the governor, the general assembly, and the 24 commission. 25 -3- LSB 1363XC (1) 85 kh/sc 3/ 3