House File 2291 - Introduced HOUSE FILE 2291 BY COMMITTEE ON EDUCATION (SUCCESSOR TO HF 2126) A BILL FOR An Act relating to the authority of the college student aid 1 commission to organize a nonprofit corporation. 2 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 3 TLSB 5290HV (3) 88 kh/jh

H.F. 2291 Section 1. NEW SECTION . 261.8 Corporation for educational 1 financial assistance and services. 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 and 9 services under programs administered by the commission. Unless 10 otherwise provided in this section, the corporation is subject 11 to the 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 and 26 services under programs administered by the commission. 27 5. Open meetings and open records. The corporation is 28 subject to chapters 21 and 22 as if it were a governmental 29 body. 30 6. Status. The corporation shall collaborate with the 31 commission for the purposes specified in this section, but the 32 corporation shall not be considered, in whole or in part, an 33 agency, department, or administrative unit of the state. The 34 corporation shall not receive appropriations from the general 35 -1- LSB 5290HV (3) 88 kh/jh 1/ 3

H.F. 2291 assembly. Except as provided in subsection 5, the corporation 1 shall not be required to comply with any requirements that 2 apply to a state agency, department, or administrative unit and 3 shall not exercise any sovereign power of the state. 4 7. No state liability. The corporation does not have 5 authority to pledge the credit of the state, and the state 6 shall not be liable for the debts or obligations of the 7 corporation. All debts and obligations of the corporation 8 shall be payable solely from the corporation’s funds. 9 8. Tax deductible. The corporation shall be established 10 so that donations and bequests to it qualify as tax deductible 11 under state income tax laws and under section 501(c)(3) of the 12 Internal Revenue Code. 13 9. Staffing and administrative support. The commission 14 shall provide staff assistance and administrative support to 15 the corporation. 16 10. Report. The corporation shall submit by January 15 17 annually a written report of its activities and operations to 18 the governor, the general assembly, and the commission. 19 EXPLANATION 20 The inclusion of this explanation does not constitute agreement with 21 the explanation’s substance by the members of the general assembly. 22 This bill authorizes the college student aid commission 23 (commission) to organize a corporation under Iowa’s revised 24 Iowa nonprofit corporation Act that qualifies under section 25 501(c)(3) of the Internal Revenue Code as a tax-exempt 26 organization. 27 The corporation must be organized for the purpose of 28 receiving and disbursing funds from public or private sources 29 to be used to provide Iowans with educational financial 30 assistance and services under programs administered by the 31 commission in accordance with Code chapter 261. 32 The incorporators of the corporation shall be the 33 chairperson of the commission, the executive director of the 34 commission, and a member of the commission selected by a 35 -2- LSB 5290HV (3) 88 kh/jh 2/ 3

H.F. 2291 majority vote of the commission. The board of directors of 1 the corporation shall be the nine members of the commission 2 appointed by the governor or their successors in office. 3 The corporation is subject to the open meetings and open 4 records laws in Code chapters 21 and 22, but the corporation 5 shall not otherwise be required to comply with any requirements 6 that apply to a state agency, department, or administrative 7 unit and shall not exercise any sovereign power of the state. 8 The corporation shall collaborate with the commission for the 9 purposes specified in the bill, but shall not be considered a 10 unit of the state, nor shall it receive appropriations from the 11 general assembly. The corporation shall be established so that 12 donations and bequests to it qualify as tax deductible under 13 federal and state income tax laws. 14 The corporation does not have authority to pledge the credit 15 of the state, and the state is not liable for the debts or 16 obligations of the corporation. 17 The commission shall provide staff assistance and 18 administrative support to the corporation. The corporation 19 shall submit a written report annually of its activities and 20 operations to the governor, the general assembly, and the 21 commission. 22 -3- LSB 5290HV (3) 88 kh/jh 3/ 3