Senate File 404 - Introduced SENATE FILE 404 BY SIRES A BILL FOR An Act creating the Iowa tourism advertising fund, and making 1 appropriations. 2 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 3 TLSB 2597XS (4) 91 jm/jh
S.F. 404 Section 1. NEW SECTION . 15.510 Iowa tourism advertising 1 fund. 2 1. For purposes of this section, eligible applicant means 3 a city, county, nonprofit organization, or business entity. 4 2. An Iowa tourism advertising fund is created in the state 5 treasury under the control of the authority. The fund shall 6 consist of all moneys deposited into the fund pursuant to 7 section 423A.6, subsection 1, or appropriated to the fund. The 8 board will oversee and administer the Iowa tourism advertising 9 fund. 10 3. Moneys in the fund are appropriated to the authority for 11 purposes of promoting tourism in Iowa through advertisements in 12 this state, other states, and internationally, or to partner 13 with or to provide grants to eligible applicants to promote 14 Iowa tourism through advertising. 15 4. Applications for grants from the fund shall be submitted 16 to the authority. For those applications that meet the 17 eligibility criteria set by rule, the authority shall forward 18 the applications and provide a staff evaluation to the board. 19 5. The board shall make final funding decisions on 20 each application and may approve, deny, defer, or modify 21 applications for grants, including partnering with the eligible 22 applicant. The board and the authority may negotiate with 23 applicants regarding the details of the advertising campaign 24 and the amount and terms of any grants. In making final 25 funding decisions pursuant to this subsection, the board and 26 the authority are exempt from chapter 17A. 27 6. If an application is approved, the authority shall enter 28 into an agreement with the applicant to provide a grant awarded 29 from the fund. 30 7. Notwithstanding section 12C.7, subsection 2, interest or 31 earnings on moneys deposited in the Iowa tourism advertising 32 fund shall be credited to the Iowa tourism advertising fund. 33 Notwithstanding section 8.33, moneys credited to the Iowa 34 tourism advertising fund shall not revert at the close of 35 -1- LSB 2597XS (4) 91 jm/jh 1/ 3
S.F. 404 a fiscal year. The authority shall not use more than five 1 percent of the moneys in the fund at the beginning of each 2 fiscal year for purposes of administrative costs and program 3 support. 4 Sec. 2. Section 423A.6, subsection 1, Code 2025, is amended 5 to read as follows: 6 1. The director of revenue shall administer the state and 7 local hotel and motel tax as nearly as possible in conjunction 8 with the administration of the state sales tax law, except 9 that portion of the law which implements the streamlined sales 10 and use tax agreement. The director shall provide appropriate 11 forms, or provide on the regular state tax forms, for reporting 12 state and local hotel and motel tax liability. All moneys 13 received or refunded one hundred eighty days after the date on 14 which a city, county, or land use district terminates its local 15 hotel and motel tax and all moneys received from the state 16 hotel and motel tax shall be deposited in or withdrawn from the 17 general fund of the state , except twenty-five hundredths of one 18 percent of the tax imposed pursuant to section 423A.3 shall be 19 deposited into the Iowa tourism advertising fund created in 20 section 15.510 . 21 EXPLANATION 22 The inclusion of this explanation does not constitute agreement with 23 the explanations substance by the members of the general assembly. 24 This bill creates the Iowa tourism advertising fund (fund), 25 in the state treasury under the control of the economic 26 development authority (authority). The authoritys board 27 members (board) will oversee and administer the fund. 28 Moneys in the fund are appropriated to the authority for 29 purposes of promoting tourism in Iowa through advertising in 30 this state, other states, and internationally, or to partner 31 with or to provide grants to eligible applicants to promote 32 Iowa tourism through advertising. 33 The bill specifies applications for grants from the fund 34 are to be submitted to the authority. The bill specifies the 35 -2- LSB 2597XS (4) 91 jm/jh 2/ 3
S.F. 404 board makes the final funding decisions on each application and 1 may approve, deny, defer, or modify applications for grants, 2 including partnering with applicants. 3 Under Code section 423A.3, a tax of 5 percent is imposed 4 upon the sales price for the renting of lodging located in this 5 state. The bill allocates 0.25 percent of this state-imposed 6 hotel and motel tax to the fund created in the bill. 7 -3- LSB 2597XS (4) 91 jm/jh 3/ 3