HF 2475 (LSB 5259YH (3) 91)

HOUSE FILE 2475

BY  GUSTOFF

A BILL FOR

An Act providing for the public examination of a record associated with a donation made to a government body by a nonprofit corporation.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  NEW SECTION.  22.3B  Nonprofit corporations —— records of a supporting organization.
   A domestic or foreign nonprofit corporation formed or transacting business in this state under chapter 504 and filing as a supporting organization under section 509(a)(3) of the Internal Revenue Code shall be deemed a government body. Any record belonging to the nonprofit corporation shall be deemed to be a public record, unless otherwise required to be confidential under state statute or federal law statute or regulation.
    Sec. 2.  NEW SECTION.  22.3C  Nonprofit corporations —— records of donations to an educational foundation.
   1.  A domestic or foreign nonprofit corporation formed or transacting business in this state under chapter 504 shall be deemed a government body for the limited purpose of allowing a person the right to examine and copy a record belonging to the nonprofit corporation, if all the following apply:
   a.  The record relates to a donation made by the nonprofit corporation to an educational institution or private foundation as defined in section 509 of the Internal Revenue Code that supports a public educational institution.
   b.  The record is not required to be confidential under state statute or federal statute or regulation. Otherwise, any record belonging to the nonprofit corporation that relates to the donation shall be deemed to be a public record.
   2.  As used in subsection 1, a “public educational institution” includes any of the following:
   a.  A public school district as described in chapter 274, including a charter school under chapter 256E, or a charter school or an innovation zone school under chapter 256F.
   b.  An area education agency established pursuant to chapter 273.
   c.  A community college as defined in section 260C.2.
   d.  An institution governed by the state board of regents pursuant to chapter 262.
    Sec. 3.  Section 22.7, subsection 52, Code 2026, is amended by striking the subsection.
    Sec. 4.  Section 173.22A, subsection 2, Code 2026, is amended to read as follows:
   2.  Moneys in the Iowa state fairgrounds trust fund shall not be deposited in the state treasury, but shall be held separate and apart from both the state fair’s operating moneys and the state fair foundation fund established in section 173.22. The board as trustee shall hold only legal title to these moneys, which shall not form any part of the general fund of the state. The moneys shall not be subject to appropriation by the general assembly or subject to transfer pursuant to chapter 8. The moneys are not and shall not be deemed public funds for any purpose. The fund shall be an institutional endowment fund within the meaning of and subject to chapter 540A. The fund shall not be subject to audit by the auditor of state, but shall be audited annually by a certified public accountant. The annual audit shall be delivered to the auditor of state, who may include it in any further report that the auditor of state deems appropriate. However, an annual audit shall be a confidential record to the extent required in section 22.7, subsection 52. The moneys may be held in perpetuity, subject to the provisions for release or modification of restrictions on the moneys as provided in chapter 540A.
EXPLANATION
The inclusion of this explanation does not constitute agreement with
the explanation’s substance by the members of the general assembly.
   BACKGROUND. Under Iowa’s open records law, a person has a right to examine and copy a public record and to publish or otherwise disseminate a public record belonging to a government body (Code section 22.2) subject to narrow exceptions providing for the confidentiality of certain public records (see Code section 22.7). A government body includes a state agency, local government unit (e.g., county, city, or school district), or a tax-supported district or nonprofit corporation other than a fair conducting a fair event as provided in Code chapter 174, whose facilities or indebtedness are supported in whole or in part with property tax revenue (Code section 22.1). A public record includes all documents, tape, or other information, stored or preserved in any medium.
   BILL’S PROVISIONS —— GENERAL. This bill provides for the public examination of a record associated with a nonprofit corporation (corporation) formed in this state as a domestic corporation or formed in another jurisdiction and authorized to transact business in this state as a foreign corporation (Code chapter 504).
   BILL’S PROVISIONS —— RECORDS BELONGING TO A NONPROFIT CORPORATION ACTING AS SUPPORTING ORGANIZATION. The bill provides that any record belonging to a corporation filing as a supporting organization under section 509(a)(3) of the Internal Revenue Code (IRC) is deemed a government body and a record belonging to the corporation is deemed to be a public record, unless the record is confidential under another Iowa statute or federal statute or regulation. Section 509(a)(3) applies when the supporting organization providing a donation has a nexus to the operations or control of the supported organization receiving the donation.
   BILL’S PROVISIONS —— RECORDS BELONGING TO A NONPROFIT CORPORATION SUPPORTING A PUBLIC EDUCATIONAL INSTITUTION. The bill provides that a corporation is deemed to be a government body for the limited purpose of allowing a person the right to examine and copy a record belonging to the corporation, if certain conditions are satisfied. The record must relate to a donation made by the corporation to a public educational institution or to a private foundation that supports a public educational institution, and the record cannot be confidential under another Iowa statute or federal statute or regulation. The bill eliminates a current exception that provides for the confidentiality of records relating to a charitable donation made to a foundation acting solely for the support of certain institutions, including a university governed by the state board of regents, the Iowa state fair, or a community college.