SF 404 (LSB 2597XS (4) 91)

SENATE FILE 404

BY  SIRES

A BILL FOR

An Act creating the Iowa tourism advertising fund, and making appropriations.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  NEW SECTION.  15.510  Iowa tourism advertising fund.
   1.  For purposes of this section, “eligible applicant” means a city, county, nonprofit organization, or business entity.
   2.  An Iowa tourism advertising fund is created in the state treasury under the control of the authority. The fund shall consist of all moneys deposited into the fund pursuant to section 423A.6, subsection 1, or appropriated to the fund. The board will oversee and administer the Iowa tourism advertising fund.
   3.  Moneys in the fund are appropriated to the authority for purposes of promoting tourism in Iowa through advertisements in this state, other states, and internationally, or to partner with or to provide grants to eligible applicants to promote Iowa tourism through advertising.
   4.  Applications for grants from the fund shall be submitted to the authority. For those applications that meet the eligibility criteria set by rule, the authority shall forward the applications and provide a staff evaluation to the board.
   5.  The board shall make final funding decisions on each application and may approve, deny, defer, or modify applications for grants, including partnering with the eligible applicant. The board and the authority may negotiate with applicants regarding the details of the advertising campaign and the amount and terms of any grants. In making final funding decisions pursuant to this subsection, the board and the authority are exempt from chapter 17A.
   6.  If an application is approved, the authority shall enter into an agreement with the applicant to provide a grant awarded from the fund.
   7.  Notwithstanding section 12C.7, subsection 2, interest or earnings on moneys deposited in the Iowa tourism advertising fund shall be credited to the Iowa tourism advertising fund. Notwithstanding section 8.33, moneys credited to the Iowa tourism advertising fund shall not revert at the close of a fiscal year. The authority shall not use more than five percent of the moneys in the fund at the beginning of each fiscal year for purposes of administrative costs and program support.
    Sec. 2.  Section 423A.6, subsection 1, Code 2025, is amended to read as follows:
   1.  The director of revenue shall administer the state and local hotel and motel tax as nearly as possible in conjunction with the administration of the state sales tax law, except that portion of the law which implements the streamlined sales and use tax agreement. The director shall provide appropriate forms, or provide on the regular state tax forms, for reporting state and local hotel and motel tax liability. All moneys received or refunded one hundred eighty days after the date on which a city, county, or land use district terminates its local hotel and motel tax and all moneys received from the state hotel and motel tax shall be deposited in or withdrawn from the general fund of the state, except twenty-five hundredths of one percent of the tax imposed pursuant to section 423A.3 shall be deposited into the Iowa tourism advertising fund created in section 15.510. 
EXPLANATION
The inclusion of this explanation does not constitute agreement with
the explanation’s substance by the members of the general assembly.
   This bill creates the Iowa tourism advertising fund (fund), in the state treasury under the control of the economic development authority (authority). The authority’s board members (board) will oversee and administer the fund.
   Moneys in the fund are appropriated to the authority for purposes of promoting tourism in Iowa through advertising in this state, other states, and internationally, or to partner with or to provide grants to eligible applicants to promote Iowa tourism through advertising.
   The bill specifies applications for grants from the fund are to be submitted to the authority. The bill specifies the board makes the final funding decisions on each application and may approve, deny, defer, or modify applications for grants, including partnering with applicants.
   Under Code section 423A.3, a tax of 5 percent is imposed upon the sales price for the renting of lodging located in this state. The bill allocates 0.25 percent of this state-imposed hotel and motel tax to the fund created in the bill.