House File 609 - Introduced HOUSE FILE 609 BY PRICHARD , McCONKEY , HANSEN , COHOON , KURTH , JAMES , KONFRST , B. MEYER , SUNDE , HALL , BOHANNAN , HUNTER , JUDGE , GJERDE , ANDERSON , WILBURN , WESSEL-KROESCHELL , WILLIAMS , OLSON , KRESSIG , MASCHER , JACOBY , EHLERT , CAHILL , WINCKLER , STAED , OLDSON , BROWN-POWERS , THEDE , DONAHUE , RUNNING-MARQUARDT , FORBES , BENNETT , WOLFE , and STECKMAN A BILL FOR An Act relating to nonprofit food banks, and making an 1 appropriation. 2 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 3 TLSB 2290YH (4) 89 dg/rh

H.F. 609 Section 1. FOOD BANKS —— APPROPRIATION —— DEPARTMENT OF 1 HUMAN SERVICES. There is appropriated from the general fund of 2 the state to the department of human services for the fiscal 3 year beginning July 1, 2021, and ending June 30, 2022, the 4 following amount, or so much thereof as is necessary, to be 5 used for the purpose designated: 6 To support nonprofit food banks, as defined in section 7 423.3, with food assistance: 8 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 5,000,000 9 Moneys appropriated shall be used by the department to 10 purchase twenty million meals that shall be distributed among 11 the nonprofit food banks based upon the percentage of the state 12 population of the service area of the specific food bank. 13 Sec. 2. Section 423.3, Code 2021, is amended by adding the 14 following new subsection: 15 NEW SUBSECTION . 107. The sales price from the sale or 16 rental of tangible personal property or specified digital 17 products, or services furnished, to a nonprofit food bank, 18 which tangible personal property, specified digital products, 19 or services are to be used by the nonprofit food bank for a 20 charitable purpose. For purposes of this subsection, “nonprofit 21 food bank” means an organization organized under chapter 504 22 and qualifying under section 501(c)(3) of the Internal Revenue 23 Code as an organization exempt from federal income tax under 24 section 501(a) of the Internal Revenue Code that maintains 25 an established operation involving the provision of food or 26 edible commodities or the products thereof on a regular basis 27 to persons in need or to food pantries, soup kitchens, hunger 28 relief centers, or other food or feeding centers that, as an 29 integral part of their normal activities, provide meals or food 30 on a regular basis to persons in need. 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 relates to nonprofit food banks, and makes an 35 -1- LSB 2290YH (4) 89 dg/rh 1/ 2

H.F. 609 appropriation. 1 The bill appropriates $5 million from the general fund of 2 the state to the department of human services for fiscal year 3 2021-2022 that shall be used to purchase 20 million meals to 4 be distributed among the nonprofit food banks based upon the 5 percentage of the state population of the service area of the 6 specific food bank. 7 The bill exempts from the sales tax the purchase price from 8 the sale or rental of tangible personal property or specified 9 digital products, or services furnished, to a nonprofit 10 food bank if the property or services are to be used by the 11 nonprofit food bank for a charitable purpose. “Nonprofit food 12 bank” is defined in the bill. By operation of Code section 13 423.6, an item exempt from the imposition of the sales tax is 14 also exempt from the use tax imposed in Code section 423.5. 15 -2- LSB 2290YH (4) 89 dg/rh 2/ 2