House File 2295 - Introduced HOUSE FILE 2295 BY WINCKLER A BILL FOR An Act relating to the authority, functions, and 1 responsibilities of the college student aid commission. 2 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 3 TLSB 5932YH (2) 86 kh/sc
H.F. 2295 Section 1. Section 261.2, Code 2016, is amended by adding 1 the following new subsections: 2 NEW SUBSECTION . 13. Be authorized to issue bonds to provide 3 student loan financing. Bonds shall be issued in compliance 4 with chapter 7C and in accordance with the provisions of 5 chapter 12A. 6 NEW SUBSECTION . 14. Develop a course of instruction in 7 financial literacy for students who qualify for education 8 loans and other forms of financial assistance under programs 9 administered by the commission. Every student who qualifies 10 for and accepts financial assistance under a program 11 administered by the commission shall successfully complete the 12 course, which may be delivered via the internet. 13 Sec. 2. NEW SECTION . 261.8 Corporation for educational 14 financial assistance. 15 1. Nonprofit corporation for receiving and disbursing 16 funds. The college student aid commission may organize a 17 corporation under the provisions of chapter 504 that qualifies 18 under section 501(c)(3) of the Internal Revenue Code as an 19 organization exempt from taxation for the purpose of receiving 20 and disbursing funds from public or private sources to be used 21 to provide Iowans with educational financial assistance under 22 programs administered by the commission. Unless otherwise 23 provided in this section, the corporation is subject to the 24 provisions of chapter 504. 25 2. Incorporators. The incorporators of the corporation 26 organized pursuant to this section shall be the chairperson of 27 the commission, the executive director of the commission, and 28 a member of the commission selected by a majority vote of the 29 commission. 30 3. Board of directors. The board of directors of the 31 corporation organized pursuant to this section shall be the 32 members of the commission appointed under section 261.1, 33 subsection 2, paragraph “d” , or their successors in office. 34 4. Accepting grants in aid. The corporation organized 35 -1- LSB 5932YH (2) 86 kh/sc 1/ 4
H.F. 2295 pursuant to this section may accept grants of money or property 1 from the federal government or private sources and may upon 2 its own order use its money, property, or other resources for 3 purposes of providing educational financial assistance under 4 programs administered by the commission. 5 5. Open meetings and open records. The corporation is 6 subject to chapters 21 and 22. 7 6. Status. The corporation shall collaborate with the 8 commission for the purposes specified in this section, but the 9 corporation shall not be considered, in whole or in part, an 10 agency, department, or administrative unit of the state. The 11 corporation shall not receive appropriations from the general 12 assembly. Except as provided in subsection 5, the corporation 13 shall not be required to comply with any requirements that 14 apply to a state agency, department, or administrative unit and 15 shall not exercise any sovereign power of the state. 16 7. No state liability. The corporation does not have 17 authority to pledge the credit of the state, and the state 18 shall not be liable for the debts or obligations of the 19 corporation. All debts and obligations of the corporation 20 shall be payable solely from the corporation’s funds. 21 8. Tax deductible. The corporation shall be established 22 so that donations and bequests to it qualify as tax deductible 23 under state income tax laws and under section 501(c)(3) of the 24 Internal Revenue Code. 25 9. Staffing and administrative support. The commission 26 shall provide staff assistance and administrative support to 27 the corporation. 28 10. Report. The corporation shall submit by January 15 29 annually a written report of its activities and operations to 30 the governor, the general assembly, and the commission. 31 EXPLANATION 32 The inclusion of this explanation does not constitute agreement with 33 the explanation’s substance by the members of the general assembly. 34 This bill authorizes the college student aid commission 35 -2- LSB 5932YH (2) 86 kh/sc 2/ 4
H.F. 2295 (commission) to issue bonds to provide student loan financing, 1 to develop a financial literacy course which students who 2 receive financial assistance under programs administered by the 3 commission must complete, and to organize a corporation under 4 Iowa’s revised Iowa nonprofit corporation Act that qualifies 5 under section 501(c)(3) of the Internal Revenue Code as a 6 tax-exempt organization. 7 ISSUANCE OF BONDS. Bonds issued by the commission to provide 8 student loan financing must be issued in compliance with Code 9 chapter 7C, relating to private activity bond allocation, 10 and in accordance with Code chapter 12A, relating to uniform 11 finance procedures for state-issued bonds. 12 FINANCIAL LITERACY COURSE. The commission must develop 13 a course of instruction in financial literacy for students 14 who qualify for education loans and other forms of financial 15 assistance under programs administered by the commission. 16 Every student who qualifies for and accepts financial 17 assistance under such a program must successfully complete the 18 course, which may be delivered via the internet. 19 ORGANIZATION OF A NONPROFIT CORPORATION. The corporation 20 must be organized for the purpose of receiving and disbursing 21 funds from public or private sources to be used to provide 22 Iowans with educational financial assistance under programs 23 administered by the college student aid commission in 24 accordance with Code chapter 261. 25 The incorporators of the corporation shall be the 26 chairperson of the commission, the executive director of the 27 commission, and a member of the commission selected by a 28 majority vote of the commission. The board of directors of 29 the corporation shall be the eight members of the commission 30 appointed by the governor or their successors in office. 31 The corporation is subject to the open meetings and open 32 records laws in Code chapters 21 and 22, but the corporation 33 shall not otherwise be required to comply with any requirements 34 that apply to a state agency, department, or administrative 35 -3- LSB 5932YH (2) 86 kh/sc 3/ 4
H.F. 2295 unit and shall not exercise any sovereign power of the state. 1 The corporation shall collaborate with the commission for the 2 purposes specified in the bill, but shall not be considered an 3 agency, department, or administrative unit of the state, nor 4 shall it receive appropriations from the general assembly. The 5 corporation shall be established so that donations and bequests 6 to it qualify as tax deductible under federal and state income 7 tax laws. 8 The corporation does not have authority to pledge the credit 9 of the state, and the state shall not be liable for the debts or 10 obligations of the corporation. 11 The commission shall provide staff assistance and 12 administrative support to the corporation. The corporation 13 shall submit a written report annually of its activities and 14 operations to the governor, the general assembly, and the 15 commission. 16 -4- LSB 5932YH (2) 86 kh/sc 4/ 4