SF 404 — A bill for an act creating the Iowa tourism advertising fund, and making appropriations.

Bill Text

• Introduced View text Current pdf

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The bill establishes the Iowa tourism advertising fund, enabling the allocation of a portion of the hotel and motel tax to promote tourism in Iowa.

• 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.

  This creates a new fund specifically for tourism advertising in Iowa and outlines its administration, funding, and application processes.

• Section 423A.6, subsection 1, Code 2025

  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 → 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.

  This modifies the existing statute to ensure that a specific percentage of the hotel and motel tax is allocated to the newly created Iowa tourism advertising fund.

Action History

1. February 25, 2025

   Subcommittee: Koelker, Dotzler, and Sires.

2. February 20, 2025

   Introduced, referred to Appropriations.

Sponsors

• Dave Sires · Primary

Votes

Subjects