Senate File 2085 - Introduced SENATE FILE 2085 BY DOTZLER A BILL FOR An Act related to the Iowa cultural trust fund and board of 1 trustees by requiring the board to spend down the balance 2 of the trust fund and by subsequently eliminating the 3 trust fund, related accounts, and the board, and including 4 effective date provisions. 5 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 6 TLSB 5926XS (2) 86 aw/sc

S.F. 2085 DIVISION I 1 IOWA CULTURAL TRUST FUND 2 Section 1. Section 303A.4, subsection 4, paragraph b, 3 subparagraphs (1) and (2), Code 2016, are amended by striking 4 the subparagraphs and inserting in lieu thereof the following: 5 (1) For the fiscal year beginning July 1, 2016, and ending 6 June 30, 2017, six hundred thousand dollars. 7 (2) For the fiscal year beginning July 1, 2017, and ending 8 June 30, 2018, six hundred thousand dollars. 9 (3) For the fiscal year beginning July 1, 2018, and ending 10 June 30, 2019, six hundred thousand dollars. 11 (4) For the fiscal year beginning July 1, 2019, and ending 12 June 30, 2020, six hundred thousand dollars. 13 (5) For the fiscal year beginning July 1, 2020, and ending 14 June 30, 2021, six hundred thousand dollars. 15 (6) For the fiscal year beginning July 1, 2021, and ending 16 June 30, 2022, six hundred thousand dollars. 17 (7) For the fiscal year beginning July 1, 2022, and ending 18 June 30, 2023, six hundred thousand dollars. 19 (8) For the fiscal year beginning July 1, 2023, and ending 20 June 30, 2024, six hundred thousand dollars. 21 (9) For the fiscal year beginning July 1, 2024, and ending 22 June 30, 2025, six hundred thousand dollars. 23 (10) For the fiscal year beginning July 1, 2025, and ending 24 June 30, 2026, an amount equal to the remaining balance of the 25 trust fund on June 30, 2025. 26 Sec. 2. Section 303A.7, subsection 1, Code 2016, is amended 27 to read as follows: 28 1. a. An Iowa cultural trust grant account is created in 29 the office of the treasurer of state under the control of the 30 board to receive interest attributable to the investment of 31 trust fund moneys as required by section 303A.4, subsection 4 , 32 paragraph “a” , and moneys transferred to the account pursuant 33 to section 303A.4, subsection 4, paragraph “b” . The Except as 34 otherwise provided in this section, the moneys in the grant 35 -1- LSB 5926XS (2) 86 aw/sc 1/ 4

S.F. 2085 account are appropriated to the board for purposes of the 1 Iowa cultural trust created in section 303A.4 . Moneys in the 2 grant account shall not be subject to appropriation for any 3 other purpose by the general assembly, but shall be used only 4 for the purposes of the Iowa cultural trust or as otherwise 5 provided in this section . The treasurer of state shall act as 6 custodian of the grant account and disburse moneys contained 7 in the grant account as directed by the board. The board shall 8 make expenditures from the grant account consistent with the 9 purposes of the Iowa cultural trust or with paragraph “b” of 10 this subsection . 11 b. Fifty percent of the moneys transferred to the account 12 each year pursuant to section 303A.4, subsection 4, paragraph 13 “b” , shall be used to provide grants to qualified organizations 14 to provide for exhibit development, traveling exhibits, and 15 operational costs. The other fifty percent of the moneys 16 transferred to the account each year pursuant to section 17 303A.4, subsection 4, paragraph “b” , shall be used to provide 18 for statewide educational programs and exhibits and as grants 19 for collections processing and digitalization. 20 Sec. 3. NEW SECTION . 303A.8 Future repeal. 21 This chapter is repealed July 1, 2026. 22 DIVISION II 23 CORRESPONDING CHANGES AND TRANSFER PROVISIONS 24 Sec. 4. Section 303.1A, subsection 1, paragraph f, Code 25 2016, is amended by striking the paragraph. 26 Sec. 5. Section 303.3B, subsection 3, Code 2016, is amended 27 to read as follows: 28 3. The department of cultural affairs shall encourage 29 development projects and activities located in certified 30 cultural and entertainment districts through incentives under 31 cultural grant programs pursuant to section 303.3 , chapter 32 303A , and any other grant programs. 33 Sec. 6. TRANSFERS UPON REPEAL. Any moneys in the Iowa 34 cultural trust fund created in Code section 303A.4 or the 35 -2- LSB 5926XS (2) 86 aw/sc 2/ 4

S.F. 2085 Iowa cultural trust grant account created in Code section 1 303A.7 that remain unobligated as of June 30, 2026, or any 2 moneys credited to the fund or account on or after that date 3 shall be transferred to the rebuild Iowa infrastructure fund, 4 created in section 8.57, subsection 5. The authority shall 5 provide notification to the department of management and to the 6 legislative services agency at the time of any transfer under 7 this section. 8 Sec. 7. EFFECTIVE DATES. 9 1. The sections of this division of this Act amending 10 sections 303.1A and 303.3B take effect July 1, 2026. 11 2. The section of this division of this Act providing for 12 the transfer of moneys from the Iowa cultural grant account 13 takes effect June 30, 2026. 14 EXPLANATION 15 The inclusion of this explanation does not constitute agreement with 16 the explanation’s substance by the members of the general assembly. 17 This bill relates to the Iowa cultural trust fund by 18 requiring the board of trustees to spend down the balance 19 of the trust fund over 10 fiscal years and by subsequently 20 eliminating the trust fund and the board. 21 The bill provides for annual transfers of $600,000 from the 22 balance of the trust fund to the Iowa cultural trust grant 23 account during each fiscal year in the fiscal period beginning 24 July 1, 2016, and ending June 30, 2025. The bill provides for 25 the transfer of the remaining balance of the trust fund to the 26 account for the 2025-2026 fiscal year. Under the bill, 50 27 percent of new annual transfers to the account are required to 28 be used to provide grants for exhibit development, traveling 29 exhibits, and operational costs of certain organizations. 30 The other 50 percent is required to be used to provide for 31 statewide educational programs and exhibits and as grants for 32 collections processing and digitalization. The bill maintains 33 current law related to the transfer and use of interest 34 attributable to the investment of moneys in the trust fund. 35 -3- LSB 5926XS (2) 86 aw/sc 3/ 4

S.F. 2085 The bill provides for the repeal of the Iowa cultural trust, 1 Code chapter 303A, on July 1, 2026. Under the bill, any moneys 2 remaining in the fund or account on June 30, 2026, are required 3 to be transferred to the rebuild Iowa infrastructure fund. 4 -4- LSB 5926XS (2) 86 aw/sc 4/ 4