HF 2291 (LSB 5290HV (3) 88)

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 commission to organize a nonprofit corporation.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  NEW SECTION.  261.8  Corporation for educational financial assistance and services.
   1.  Nonprofit corporation for receiving and disbursing funds.  The college student aid commission may organize a corporation under the provisions of chapter 504 that qualifies under section 501(c)(3) of the Internal Revenue Code as an organization exempt from taxation for the purpose of receiving and disbursing funds from public or private sources to be used to provide Iowans with educational financial assistance and services under programs administered by the commission. Unless otherwise provided in this section, the corporation is subject to the provisions of chapter 504.
   2.  Incorporators. The incorporators of the corporation organized pursuant to this section shall be the chairperson of the commission, the executive director of the commission, and a member of the commission selected by a majority vote of the commission.
   3.  Board of directors.  The board of directors of the corporation organized pursuant to this section shall be the members of the commission appointed under section 261.1, subsection 2, paragraph “d”, or their successors in office.
   4.  Accepting grants in aid.  The corporation organized pursuant to this section may accept grants of money or property from the federal government or private sources and may upon its own order use its money, property, or other resources for purposes of providing educational financial assistance and services under programs administered by the commission.
   5.  Open meetings and open records.  The corporation is subject to chapters 21 and 22 as if it were a governmental body.
   6.  Status. The corporation shall collaborate with the commission for the purposes specified in this section, but the corporation shall not be considered, in whole or in part, an agency, department, or administrative unit of the state. The corporation shall not receive appropriations from the general assembly. Except as provided in subsection 5, the corporation shall not be required to comply with any requirements that apply to a state agency, department, or administrative unit and shall not exercise any sovereign power of the state. 
   7.  No state liability.  The corporation does not have authority to pledge the credit of the state, and the state shall not be liable for the debts or obligations of the corporation. All debts and obligations of the corporation shall be payable solely from the corporation’s funds.
   8.  Tax deductible. The corporation shall be established so that donations and bequests to it qualify as tax deductible under state income tax laws and under section 501(c)(3) of the Internal Revenue Code.
   9.  Staffing and administrative support.  The commission shall provide staff assistance and administrative support to the corporation.
   10.  Report.  The corporation shall submit by January 15 annually a written report of its activities and operations to the governor, the general assembly, and the commission.
EXPLANATION
The inclusion of this explanation does not constitute agreement with
the explanation’s substance by the members of the general assembly.
   This bill authorizes the college student aid commission (commission) to organize a corporation under Iowa’s revised Iowa nonprofit corporation Act that qualifies under section 501(c)(3) of the Internal Revenue Code as a tax-exempt organization.
   The corporation must be organized for the purpose of receiving and disbursing funds from public or private sources to be used to provide Iowans with educational financial assistance and services under programs administered by the commission in accordance with Code chapter 261.
   The incorporators of the corporation shall be the chairperson of the commission, the executive director of the commission, and a member of the commission selected by a majority vote of the commission. The board of directors of the corporation shall be the nine members of the commission appointed by the governor or their successors in office.
   The corporation is subject to the open meetings and open records laws in Code chapters 21 and 22, but the corporation shall not otherwise be required to comply with any requirements that apply to a state agency, department, or administrative unit and shall not exercise any sovereign power of the state. The corporation shall collaborate with the commission for the purposes specified in the bill, but shall not be considered a unit of the state, nor shall it receive appropriations from the general assembly. The corporation shall be established so that donations and bequests to it qualify as tax deductible under federal and state income tax laws.
   The corporation does not have authority to pledge the credit of the state, and the state is not liable for the debts or obligations of the corporation.
   The commission shall provide staff assistance and administrative support to the corporation. The corporation shall submit a written report annually of its activities and operations to the governor, the general assembly, and the commission.