House File 2471 - Reprinted HOUSE FILE 2471 BY COMMITTEE ON WAYS AND MEANS (SUCCESSOR TO HF 2430) (As Amended and Passed by the House April 23, 2014 ) A BILL FOR An Act relating to the Iowa individual income tax checkoffs by 1 modifying the Iowa election campaign income tax checkoff 2 and providing for the future repeal of the checkoff, by 3 creating an income tax checkoff for the reduction of food 4 insecurity within this state and providing for the future 5 repeal of the checkoff, by creating income tax checkoffs for 6 the Iowa state fair foundation fund and the veterans trust 7 fund and volunteer fire fighter preparedness fund, making 8 an appropriation, creating a study committee, and including 9 effective date and retroactive applicability provisions. 10 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 11 HF 2471 (4) 85 mm/sc/md

H.F. 2471 DIVISION I 1 INCOME TAX CHECKOFF FOR IOWA CHECK OFF HUNGER FUND 2 Section 1. NEW SECTION . 231.67 Iowa check off hunger fund. 3 1. An Iowa check off hunger fund is created in the state 4 treasury under the control of the department. The fund is 5 composed of moneys appropriated or available to and obtained 6 or accepted by the treasurer of state for deposit in the fund. 7 The fund shall include moneys transferred to the fund pursuant 8 to an income tax checkoff provided in chapter 422, division II, 9 if applicable. Notwithstanding section 12C.7, subsection 2, 10 interest or earnings on moneys in the fund shall be credited to 11 and remain in the fund. Section 8.33 does not apply to moneys 12 in the fund. 13 2. Moneys in the fund are appropriated to the department 14 to provide grants to persons to be used for the purpose of 15 reducing food insecurity within the state. The grants shall 16 be awarded as follows: 17 a. Forty percent of the moneys in the fund shall be 18 awarded to a nonprofit, tax-exempt association, chosen by the 19 department, that receives donations under section 170 of the 20 Internal Revenue Code and whose members include Iowa food 21 banks and their affiliates that together serve all counties 22 in the state, to be used to purchase food for distribution to 23 food-insecure Iowans. 24 b. Fifty percent of the moneys in the fund shall be awarded 25 to each area agency on aging designated under section 231.32 in 26 the proportion that the estimated amount of older individuals 27 in Iowa served by that area agency on aging bears to the 28 total estimated amount of older individuals in Iowa, to be 29 used to provide congregate meals and home-delivered meals to 30 food-insecure older individuals in Iowa. 31 c. Ten percent of the moneys in the fund shall be awarded to 32 persons who are using innovative ways to reduce food insecurity 33 in this state. To be eligible to receive a grant pursuant to 34 this paragraph “c” , a person shall apply to the department 35 -1- HF 2471 (4) 85 mm/sc/md 1/ 10

H.F. 2471 in the manner prescribed by the department. In reviewing 1 applications and making grants pursuant to this paragraph “c” , 2 the department may consider any factors the department deems 3 appropriate. 4 3. The department shall adopt rules to administer the Iowa 5 check off hunger fund. 6 Sec. 2. NEW SECTION . 422.12I Income tax checkoff for Iowa 7 check off hunger fund. 8 1. Notwithstanding section 422.12E, for the tax year 9 beginning in the 2014 calendar year, a person who files an 10 individual or a joint income tax return with the department 11 of revenue under section 422.13 may designate one dollar or 12 more to be paid to the Iowa check off hunger fund created in 13 section 231.67. If the refund due on the return or the payment 14 remitted with the return is insufficient to pay the additional 15 amount designated by the taxpayer to the Iowa check off hunger 16 fund, the amount designated shall be reduced to the remaining 17 amount of refund or the remaining amount remitted with the 18 return. The designation of a contribution to the Iowa check 19 off hunger fund under this section is irrevocable. 20 2. The director of revenue shall draft the 2014 income 21 tax form to allow the designation of contributions to the 22 Iowa check off hunger fund on the tax return. The department 23 of revenue shall transfer the total amount designated on the 24 2014 tax return forms to the Iowa check off hunger fund. 25 However, before a checkoff pursuant to this section shall be 26 permitted, all liabilities on the books of the department of 27 administrative services and accounts identified as owing under 28 section 8A.504 and the political contribution allowed under 29 section 68A.601 shall be satisfied. 30 3. The department on aging may authorize payment of moneys 31 from the Iowa check off hunger fund, in accordance with section 32 231.67. 33 4. The department of revenue shall adopt rules to administer 34 this section. 35 -2- HF 2471 (4) 85 mm/sc/md 2/ 10

H.F. 2471 5. This section is repealed January 1, 2015. 1 DIVISION II 2 IOWA ELECTION CAMPAIGN FUND TAX CHECKOFF 3 Sec. 3. Section 68A.601, Code 2014, is amended to read as 4 follows: 5 68A.601 Checkoff —— income tax. 6 A For tax years beginning before January 1, 2014, a person 7 whose state income tax liability for any taxable year is one 8 dollar and fifty cents or more may direct that one dollar and 9 fifty cents of that liability be paid over to the Iowa election 10 campaign fund when submitting the person’s state income tax 11 return to the department of revenue. In the case of a joint 12 return of husband and wife having a state income tax liability 13 of three dollars or more, each spouse may direct that one 14 dollar and fifty cents be paid to the fund. The For tax years 15 beginning before January 1, 2014, the director of revenue shall 16 draft the income tax form to provide spaces on the tax return 17 which the taxpayer may use to designate that contributions made 18 under this section be credited to a specified political party 19 as defined by section 43.2 , or to the Iowa election campaign 20 fund as a contribution to be shared by all such political 21 parties in the manner prescribed by section 68A.602 . The form 22 shall inform the taxpayer of the consequences of the choices 23 provided under this section , but this information may be 24 contained in a footnote or other suitable form if the director 25 of revenue finds it is not feasible to place the information 26 immediately above the signature line. The action taken by a 27 person for the checkoff is irrevocable. 28 Sec. 4. Section 422.12J, Code 2014, is amended to read as 29 follows: 30 422.12J Income tax checkoff for Iowa election campaign fund. 31 A For tax years beginning before January 1, 2014, a person 32 who files an individual or a joint income tax return with 33 the department of revenue under section 422.13 may designate 34 a contribution to the Iowa election campaign fund authorized 35 -3- HF 2471 (4) 85 mm/sc/md 3/ 10

H.F. 2471 pursuant to section 68A.601 . 1 DIVISION III 2 FUTURE REPEAL OF IOWA ELECTION CAMPAIGN FUND TAX CHECKOFF 3 Sec. 5. Section 68A.103, subsection 2, Code 2014, is amended 4 by striking the subsection. 5 Sec. 6. Section 97B.3, subsection 2, Code 2014, is amended 6 to read as follows: 7 2. The qualifications for appointment as the chief 8 executive officer shall include management-level pension 9 fund administration experience. The qualifications for 10 appointment as the chief executive officer shall also 11 include a demonstrated knowledge of all aspects of pension 12 fund administration, including financial management, 13 investment asset management, benefit design and delivery, 14 legal administration, and operations administration. The 15 chief executive officer shall not be selected on the basis 16 of political affiliation, and while employed as the chief 17 executive officer, shall not be a member of a political 18 committee, participate in a political campaign, or be a 19 candidate for a partisan elective office, and shall not 20 contribute to a political campaign fund, except that the chief 21 executive officer may designate on the checkoff portion of the 22 state or federal income tax return , or both, a party or parties 23 to which a contribution is made pursuant to the checkoff. The 24 chief executive officer shall not hold any other office under 25 the laws of the United States or of this or any state and shall 26 devote full time to the duties of office. 27 Sec. 7. Section 422.12D, subsection 4, Code 2014, is amended 28 to read as follows: 29 4. The department shall adopt rules to implement this 30 section . However, before a checkoff pursuant to this section 31 shall be permitted, all liabilities on the books of the 32 department of administrative services and accounts identified 33 as owing under section 8A.504 and the political contribution 34 allowed under section 68A.601 shall be satisfied. 35 -4- HF 2471 (4) 85 mm/sc/md 4/ 10

H.F. 2471 Sec. 8. Section 422.12E, subsection 1, Code 2014, is amended 1 to read as follows: 2 1. For tax years beginning on or after January 1, 2004, 3 there shall be allowed no more than four income tax return 4 checkoffs on each income tax return. When the same four income 5 tax return checkoffs have been provided on the income tax 6 return for two consecutive years, the two checkoffs for which 7 the least amount has been contributed, in the aggregate for the 8 first tax year and through March 15 of the second tax year, are 9 repealed. This section does not apply to the income tax return 10 checkoff provided in section 68A.601 . 11 Sec. 9. Section 422.12K, subsection 2, Code 2014, is amended 12 to read as follows: 13 2. The director of revenue shall draft the income tax form 14 to allow the designation of contributions to the child abuse 15 prevention program fund on the tax return. The department of 16 revenue, on or before January 31, shall transfer the total 17 amount designated on the tax return forms due in the preceding 18 calendar year to the child abuse prevention program fund. 19 However, before a checkoff pursuant to this section shall be 20 permitted, all liabilities on the books of the department of 21 administrative services and accounts identified as owing under 22 section 8A.504 and the political contribution allowed under 23 section 68A.601 shall be satisfied. 24 Sec. 10. Section 422.12L, subsection 2, Code 2014, is 25 amended to read as follows: 26 2. The director of revenue shall draft the income tax form 27 to allow the designation of contributions to the veterans trust 28 fund and to the volunteer fire fighter preparedness fund as 29 one checkoff on the tax return. The department of revenue, 30 on or before January 31, shall transfer one-half of the total 31 amount designated on the tax return forms due in the preceding 32 calendar year to the veterans trust fund and the remaining 33 one-half to the volunteer fire fighter preparedness fund. 34 However, before a checkoff pursuant to this section shall be 35 -5- HF 2471 (4) 85 mm/sc/md 5/ 10

H.F. 2471 permitted, all liabilities on the books of the department of 1 administrative services and accounts identified as owing under 2 section 8A.504 and the political contribution allowed under 3 section 68A.601 shall be satisfied. 4 Sec. 11. Section 456A.16, unnumbered paragraph 7, Code 5 2014, is amended to read as follows: 6 The department shall adopt rules to implement this section . 7 However, before a checkoff pursuant to this section shall be 8 permitted, all liabilities on the books of the department of 9 administrative services and accounts identified as owing under 10 section 8A.504 and the political contribution allowed under 11 section 68A.601 shall be satisfied. 12 Sec. 12. Section 474.10, Code 2014, is amended to read as 13 follows: 14 474.10 General counsel. 15 The board shall employ a competent attorney to serve as its 16 general counsel, and assistants to the general counsel as it 17 finds necessary for the full and efficient discharge of its 18 duties. The general counsel is the attorney for, and legal 19 advisor of, the board and is exempt from the merit system 20 provisions of chapter 8A, subchapter IV . Assistants to the 21 general counsel are subject to the merit system provisions of 22 chapter 8A, subchapter IV . The general counsel or an assistant 23 to the general counsel shall provide the necessary legal advice 24 to the board in all matters and represent the board in all 25 actions instituted in a state or federal court challenging 26 the validity of a rule or order of the board. The existence 27 of a fact which disqualifies a person from election or from 28 acting as a utilities board member disqualifies the person from 29 employment as general counsel or assistant general counsel. 30 The general counsel shall devote full time to the duties of the 31 office. During employment the counsel shall not be a member of 32 a political committee, contribute to a political campaign fund 33 other than through the income tax checkoff for contributions to 34 the Iowa election campaign fund and the presidential election 35 -6- HF 2471 (4) 85 mm/sc/md 6/ 10

H.F. 2471 campaign fund, participate in a political campaign, or be a 1 candidate for a political office. 2 Sec. 13. Section 475A.1, subsection 4, Code 2014, is amended 3 to read as follows: 4 4. Political activity prohibited. The consumer advocate 5 shall devote the advocate’s entire time to the duties of the 6 office; and during the advocate’s term of office the advocate 7 shall not be a member of a political committee or contribute 8 to a political campaign fund other than through the income tax 9 checkoff for contributions to the Iowa election campaign fund 10 and the presidential election campaign fund or take part in 11 political campaigns or be a candidate for a political office. 12 Sec. 14. Section 904.107, Code 2014, is amended to read as 13 follows: 14 904.107 Director —— appointment and qualifications. 15 The chief administrative officer for the department is the 16 director. The director shall be appointed by the governor 17 subject to confirmation by the senate and shall serve at the 18 pleasure of the governor. The director shall be qualified 19 in reformatory and prison management, knowledgeable in 20 community-based corrections, and shall possess administrative 21 ability. The director shall also have experience in the field 22 of criminology and discipline and in the supervision of inmates 23 in corrective penal institutions. The director shall not be 24 selected on the basis of political affiliation, and while 25 employed as the director, shall not be a member of a political 26 committee, participate in a political campaign, be a candidate 27 for a partisan elective office, and shall not contribute to a 28 political campaign fund, except that the director may designate 29 on the checkoff portion of the state or federal income tax 30 return , or both, a party or parties to which a contribution is 31 made pursuant to the checkoff. The director shall not hold any 32 other office under the laws of the United States or of this or 33 any state or hold any position for profit and shall devote full 34 time to the duties of office. 35 -7- HF 2471 (4) 85 mm/sc/md 7/ 10

H.F. 2471 Sec. 15. REPEAL. Sections 68A.601, 68A.602, 68A.603, 1 68A.604, 68A.605, 68A.606, 68A.607, 68A.608, 68A.609, and 2 422.12J, Code 2014, are repealed. 3 Sec. 16. EFFECTIVE DATE. This division of this Act takes 4 effect July 1, 2015. 5 DIVISION IV 6 INCOME TAX CHECKOFFS FOR THE IOWA STATE FAIR FOUNDATION 7 FUND AND THE VETERANS TRUST FUND AND VOLUNTEER FIRE FIGHTER 8 PREPAREDNESS FUND 9 Sec. 17. NEW SECTION . 422.12D Income tax checkoff for the 10 Iowa state fair foundation fund. 11 1. A person who files an individual or a joint income tax 12 return with the department of revenue under section 422.13 13 may designate one dollar or more to be paid to the foundation 14 fund of the Iowa state fair foundation as established in 15 section 173.22 . If the refund due on the return or the payment 16 remitted with the return is insufficient to pay the amount 17 designated by the taxpayer to the foundation fund, the amount 18 designated shall be reduced to the remaining amount of the 19 refund or the remaining amount remitted with the return. The 20 designation of a contribution to the foundation fund under this 21 section is irrevocable. 22 2. The director of revenue shall draft the income tax form 23 to allow the designation of contributions to the foundation 24 fund on the tax return. The department, on or before January 25 31, shall transfer the total amount designated on the tax 26 form due in the preceding year to the foundation fund. 27 However, before a checkoff pursuant to this section shall be 28 permitted, all liabilities on the books of the department of 29 administrative services and accounts identified as owing under 30 section 8A.504 and the political contribution allowed under 31 section 68A.601 shall be satisfied. 32 3. The Iowa state fair board may authorize payment from 33 the foundation fund for purposes of supporting foundation 34 activities. 35 -8- HF 2471 (4) 85 mm/sc/md 8/ 10

H.F. 2471 4. The department of revenue shall adopt rules to implement 1 this section . 2 5. This section is subject to repeal under section 422.12E. 3 Sec. 18. NEW SECTION . 422.12L Joint income tax checkoff for 4 veterans trust fund and volunteer fire fighter preparedness fund. 5 1. A person who files an individual or a joint income tax 6 return with the department of revenue under section 422.13 may 7 designate one dollar or more to be paid jointly to the veterans 8 trust fund created in section 35A.13 and to the volunteer fire 9 fighter preparedness fund created in section 100B.13 . If the 10 refund due on the return or the payment remitted with the 11 return is insufficient to pay the additional amount designated 12 by the taxpayer, the amount designated shall be reduced to the 13 remaining amount of refund or the remaining amount remitted 14 with the return. The designation of a contribution under this 15 section is irrevocable. 16 2. The director of revenue shall draft the income tax form 17 to allow the designation of contributions to the veterans trust 18 fund and to the volunteer fire fighter preparedness fund as 19 one checkoff on the tax return. The department of revenue, 20 on or before January 31, shall transfer one-half of the total 21 amount designated on the tax return forms due in the preceding 22 calendar year to the veterans trust fund and the remaining 23 one-half to the volunteer fire fighter preparedness fund. 24 However, before a checkoff pursuant to this section shall be 25 permitted, all liabilities on the books of the department of 26 administrative services and accounts identified as owing under 27 section 8A.504 and the political contribution allowed under 28 section 68A.601 shall be satisfied. 29 3. The department of revenue shall adopt rules to administer 30 this section . 31 4. This section is subject to repeal under section 422.12E . 32 Sec. 19. REPEAL. Sections 422.12D and 422.12L, Code 2014, 33 are repealed. 34 Sec. 20. RETROACTIVE APPLICABILITY. This division of this 35 -9- HF 2471 (4) 85 mm/sc/md 9/ 10

H.F. 2471 Act applies retroactively to January 1, 2014, for tax years 1 beginning on or after that date. 2 DIVISION V 3 STUDY COMMITTEE 4 Sec. 21. INCOME TAX CHECKOFF STUDY COMMITTEE. 5 1. The legislative council is requested to establish an 6 income tax checkoff study committee. The objective of the 7 study committee shall be to review the use and effectiveness of 8 individual income tax checkoffs in Iowa, and the desirability 9 for making changes to the number, type, or administration of 10 the individual income tax checkoffs. 11 2. The study committee shall meet during the 2014 12 legislative interim. The study committee shall submit a report 13 and recommendations to the general assembly by January 1, 2015. 14 -10- HF 2471 (4) 85 mm/sc/md 10/ 10