Relating to the authority of the college student aid commission to organize a nonprofit corporation

This bill authorizes the college student aid commission (commission) to organize a corporation under Iowa’s revised Iowa nonprofit corporation Act that qualifies under section 501(c)(3) of the Internal Revenue Code as a tax-exempt organization. The corporation must be organized for the purpose of receiving and disbursing funds from public or private sources to be used to provide Iowans with educational financial assistance and services under programs administered by the commission in accordance with Code chapter 261. The incorporators of the corporation shall be the chairperson of the commission, the executive director of the commission, and a member of the commission selected by a majority vote of the commission. The board of directors of the corporation shall be the nine members of the commission appointed by the governor or their successors in office. The corporation is subject to the open meetings and open records laws in Code chapters and 22, but the corporation shall not otherwise be required to comply with any requirements that apply to a state agency, department, or administrative unit and shall not exercise any sovereign power of the state. The corporation shall collaborate with the commission for the purposes specified in the bill, but shall not be considered a unit of the state, nor shall it receive appropriations from the general assembly. The corporation shall be established so that donations and bequests to it qualify as tax deductible under federal and state income tax laws. The corporation does not have authority to pledge the credit of the state, and the state is not liable for the debts or obligations of the corporation. The commission shall provide staff assistance and administrative support to the corporation. The corporation shall submit a written report annually of its activities and operations to the governor, the general assembly, and the commission.