The bill establishes the Iowa tourism advertising fund, which will be managed by the economic development authority. This fund is created to promote tourism in Iowa through advertising efforts both within the state and internationally. Eligible applicants for grants from this fund include cities, counties, nonprofit organizations, and business entities. The authority will oversee the application process, with the board making final funding decisions on grant applications, which can be approved, denied, deferred, or modified. Additionally, the bill allows for negotiations between the authority and applicants regarding the details of advertising campaigns and grant terms.

To support the Iowa tourism advertising fund, the bill amends section 423A.6 of the Code to allocate 0.25 percent of the state-imposed hotel and motel tax to the fund. This allocation is intended to provide a steady source of funding for tourism promotion efforts. The bill also stipulates that interest or earnings on the fund's moneys will remain within the fund and that no more than five percent of the fund's total at the beginning of each fiscal year can be used for administrative costs and program support.

Statutes affected:
Introduced: 423A.6