Senate File 261 - Introduced SENATE FILE 261 BY COMMITTEE ON EDUCATION (SUCCESSOR TO SSB 1069) A BILL FOR An Act authorizing the college student aid commission to 1 organize a nonprofit corporation. 2 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 3 TLSB 1308SV (1) 89 kh/jh

S.F. 261 Section 1. NEW SECTION . 261.8 Corporation for educational 1 financial assistance, services, and research. 2 1. Nonprofit corporation for receiving and disbursing 3 funds. The commission may organize a nonprofit corporation 4 under the provisions of chapter 504 that qualifies under 5 section 501(c)(3) of the Internal Revenue Code as an 6 organization exempt from taxation for the purpose of receiving 7 and disbursing moneys from public or private sources to be 8 used to provide Iowans with educational financial assistance, 9 services to increase access to and success in postsecondary 10 education, and research. Unless otherwise provided in this 11 section, the corporation is subject to the provisions of 12 chapter 504. 13 2. Incorporators. The incorporators of the corporation 14 organized pursuant to this section shall be the chairperson of 15 the commission, the executive director of the commission, and 16 a member of the commission selected by a majority vote of the 17 commission. 18 3. Board of directors. The board of directors of the 19 corporation organized pursuant to this section shall be the 20 members of the commission appointed under section 261.1, 21 subsection 2, paragraphs “a” , “b” , and “d” , or their successors 22 in office, and may include up to two additional members 23 who shall be appointed by the commission and who shall have 24 experience or legal and technical expertise relating to 25 nonprofit organizations. 26 4. Accepting grants in aid. The corporation organized 27 pursuant to this section may accept grants of money or property 28 from the federal government or private sources and may upon its 29 own order use its money, property, or other resources for the 30 purposes set forth in subsection 1. 31 5. Open meetings and open records. The corporation is 32 subject to chapters 21 and 22 as if the corporation were a 33 governmental body. 34 6. Status. The corporation shall collaborate with the 35 -1- LSB 1308SV (1) 89 kh/jh 1/ 4

S.F. 261 commission for the purposes specified in this section, but the 1 corporation shall not be considered, in whole or in part, an 2 agency, department, or administrative unit of the state. The 3 corporation shall not receive appropriations from the general 4 assembly. Except as provided in subsection 5, the corporation 5 shall not be required to comply with any requirements that 6 apply to a state agency, department, or administrative unit 7 and shall not exercise any sovereign power of the state. The 8 commission shall enter into an agreement under chapter 28E with 9 the corporation to stipulate the powers and responsibilities 10 of the corporation and the commission for purposes of this 11 section. The corporation may enter into agreements with 12 other entities as necessary to fulfill the provisions of this 13 section. 14 7. No state liability. The corporation does not have 15 authority to pledge the credit of the state, and the state 16 shall not be liable for the debts or obligations of the 17 corporation. All debts and obligations of the corporation 18 shall be payable solely from the corporation’s funds. 19 8. Tax deductible. The corporation shall be established 20 so that donations and bequests to the corporation qualify as 21 tax deductible under state income tax laws and under section 22 501(c)(3) of the Internal Revenue Code. 23 9. Staffing and administrative support. The commission 24 shall provide staff assistance and administrative support to 25 the corporation. 26 10. Report. The corporation shall submit by January 15 27 annually a written report of its activities and operations to 28 the governor, the general assembly, and the commission. 29 EXPLANATION 30 The inclusion of this explanation does not constitute agreement with 31 the explanation’s substance by the members of the general assembly. 32 This bill authorizes the college student aid commission 33 (commission) to organize a corporation under the revised 34 Iowa nonprofit corporation Act that qualifies under section 35 -2- LSB 1308SV (1) 89 kh/jh 2/ 4

S.F. 261 501(c)(3) of the Internal Revenue Code as a tax-exempt 1 organization. 2 The corporation must be organized for the purpose of 3 receiving and disbursing moneys from public or private sources 4 to be used to provide Iowans with educational financial 5 assistance, services to increase access and success in 6 postsecondary education, and research. 7 The incorporators of the corporation shall be the 8 chairperson of the commission, the executive director of the 9 commission, and a member of the commission selected by a 10 majority vote of the commission. The board of directors of 11 the corporation shall be the nine members of the commission 12 appointed by the governor, a member of the state board of 13 regents, the director of the department of education or the 14 director’s designee, and may include up to two additional 15 members who shall be appointed by the commission and who shall 16 have experience or legal and technical expertise relating to 17 nonprofit organizations. 18 The corporation is subject to the open meetings and open 19 records laws in Code chapters 21 and 22, but the corporation 20 shall not otherwise be required to comply with any requirements 21 that apply to a state agency, department, or administrative 22 unit and shall not exercise any sovereign power of the state. 23 The corporation shall collaborate with the commission for 24 the purposes specified in the bill, but shall not be considered 25 a unit of the state, nor shall it receive appropriations from 26 the general assembly. The corporation shall be established so 27 that donations and bequests to it qualify as tax deductible 28 under federal and state income tax laws. The commission and 29 the nonprofit corporation shall enter into a chapter 28E 30 agreement to stipulate the powers and responsibilities of both 31 entities. The corporation may enter into agreements with other 32 entities as necessary. 33 The corporation does not have authority to pledge the credit 34 of the state, and the state is not liable for the debts or 35 -3- LSB 1308SV (1) 89 kh/jh 3/ 4

S.F. 261 obligations of the corporation. 1 The commission shall provide staff assistance and 2 administrative support to the corporation. The corporation 3 shall submit a written report annually of its activities and 4 operations to the governor, the general assembly, and the 5 commission. 6 -4- LSB 1308SV (1) 89 kh/jh 4/ 4