Read the full stored bill text
House
File
2089
-
Introduced
HOUSE
FILE
2089
BY
LAWLER
A
BILL
FOR
An
Act
relating
to
the
distribution
of
gambling
games
and
1
sports
wagering
receipts
in
this
state
for
nonprofit
2
purposes,
and
including
applicability
provisions.
3
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
4
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Section
1.
Section
99F.6,
subsection
4,
paragraph
a,
1
subparagraph
(2),
Code
2026,
is
amended
to
read
as
follows:
2
(2)
(a)
A
qualified
sponsoring
organization
licensed
to
3
operate
gambling
games
under
this
chapter
shall
distribute
4
the
receipts
of
all
gambling
games,
less
reasonable
expenses,
5
charges,
taxes,
fees,
and
deductions
allowed
under
this
6
chapter
,
as
winnings
to
players
or
participants
or
shall
7
distribute
the
receipts
for
educational,
civic,
public,
8
charitable,
patriotic,
or
religious
uses
as
defined
in
section
9
99B.1
.
A
qualified
sponsoring
organization
shall
provide
that
10
any
organization
exempt
from
federal
income
taxes
under
section
11
501(c)(19)
of
the
Internal
Revenue
Code,
as
defined
in
section
12
422.3
,
shall
be
eligible
for
a
distribution
of
adjusted
gross
13
receipts
for
educational,
civic,
public,
charitable,
patriotic,
14
or
religious
uses
as
required
by
this
subparagraph.
However,
a
15
licensee
to
conduct
gambling
games
under
this
chapter
shall,
16
unless
an
operating
agreement
for
an
excursion
gambling
boat
17
otherwise
provides,
distribute
at
least
three
percent
of
the
18
adjusted
gross
receipts
and,
if
applicable,
three-quarters
of
19
one
percent
of
sports
wagering
net
receipts
for
each
license
20
year
for
educational,
civic,
public,
charitable,
patriotic,
21
or
religious
uses
as
defined
in
section
99B.1
,
as
provided
in
22
subparagraph
division
(b)
.
However,
if
a
licensee
who
is
also
23
licensed
to
conduct
pari-mutuel
wagering
at
a
horse
racetrack
24
has
unpaid
debt
from
the
pari-mutuel
racetrack
operations,
25
the
first
receipts
of
the
gambling
games
operated
within
the
26
racetrack
enclosure
less
reasonable
operating
expenses,
taxes,
27
and
fees
allowed
under
this
chapter
shall
be
first
used
to
pay
28
the
annual
indebtedness.
29
(b)
(i)
A
licensee
making
a
required
distribution
for
30
educational,
civic,
public,
charitable,
patriotic,
or
religious
31
uses
pursuant
to
subparagraph
division
(a)
shall
distribute
at
32
least
seventy-five
percent
of
the
moneys
on
a
pro
rata
basis,
33
as
provided
in
subparagraph
subdivision
(ii),
for
use
in
each
34
Iowa
county
whose
residents
contributed
to
the
gambling
games
35
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or
sports
wagering
receipts
of
the
licensee.
1
(ii)
The
licensee
shall
collect
and
maintain
records
2
to
determine
the
county
of
residence
of
all
players
or
3
participants
who
contributed
to
the
gambling
games
or
sports
4
wagering
receipts
of
the
licensee
and
the
amount
of
receipts
5
attributable
to
each
player
or
participant.
The
distribution
6
to
be
made
for
use
in
each
Iowa
county
shall
be
based
on
the
7
gross
receipts
generated
by
players
or
participants
from
8
a
given
Iowa
county
in
comparison
to
the
total
such
gross
9
receipts
generated
by
players
or
participants
from
all
Iowa
10
counties.
Receipts
generated
by
persons
who
are
not
residents
11
of
Iowa
or
whose
county
of
residence
cannot
be
verified
shall
12
be
distributed
proportionally
in
each
Iowa
county
based
on
the
13
distribution
calculated
for
gross
receipts
generated
by
players
14
or
participants
from
Iowa
counties.
15
(iii)
This
subparagraph
division
(b)
does
not
restrict
the
16
distribution
of
gambling
games
or
sports
wagering
receipts
of
17
a
licensee
in
excess
of
seventy-five
percent
of
the
moneys
18
distributed.
Such
receipts
shall
be
distributed
as
otherwise
19
authorized
or
required
by
law.
20
(iv)
A
licensee
shall
file
an
annual
report
with
the
21
commission
that
includes
all
of
the
following,
which
the
22
commission
shall
post
publicly
on
the
commission’s
internet
23
site:
24
(A)
The
total
amount
of
the
licensee’s
gambling
games
and
25
sports
wagering
receipts
generated
by
residents
of
each
Iowa
26
county.
27
(B)
The
total
amount
of
the
licensee’s
gambling
games
28
and
sports
wagering
receipts
generated
by
persons
who
are
29
not
residents
of
Iowa
or
whose
county
of
residence
cannot
be
30
verified.
31
(C)
The
total
amount
of
moneys
distributed
by
the
licensee
32
under
this
subparagraph
(2).
33
(D)
The
amount
of
moneys
distributed
to
each
Iowa
county
by
34
the
licensee
under
this
subparagraph
(2).
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(v)
(A)
A
licensee
who
fails
to
comply
with
this
1
subparagraph
division
(b)
shall
be
subject
to
a
civil
2
penalty
not
to
exceed
five
percent
of
the
total
amount
of
3
moneys
required
to
be
distributed
by
the
licensee
under
this
4
subparagraph
(2),
to
be
imposed
and
collected
by
the
commission
5
and
deposited
in
the
general
fund
of
the
state.
6
(B)
The
commission
may
order
a
licensee
that
fails
to
comply
7
with
this
subparagraph
division
(b)
to
redistribute
the
moneys
8
as
required
by
law.
9
(C)
A
licensee
that
willfully
or
repeatedly
fails
to
10
comply
with
this
subparagraph
division
(b)
shall
be
subject
11
to
additional
discipline
by
the
commission,
which
may
include
12
suspension
of
the
licensee’s
license.
13
Sec.
2.
APPLICABILITY.
This
Act
applies
to
gambling
14
games
and
sports
wagering
receipts
collected
in
a
fiscal
year
15
beginning
on
or
after
the
effective
date
of
this
Act.
16
EXPLANATION
17
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
18
the
explanation’s
substance
by
the
members
of
the
general
assembly.
19
This
bill
relates
to
the
allocation
of
required
nonprofit
20
distributions
of
gambling
games
and
sports
wagering
receipts.
21
Under
current
law,
most
licensees
are
required
to
distribute
22
at
least
3
percent
of
the
licensee’s
adjusted
gross
receipts
23
from
gambling
games
and
three-quarters
of
1
percent
of
net
24
receipts
from
sports
wagering
to
organizations
dedicated
to
25
civic,
public,
charitable,
patriotic,
or
religious
uses.
The
26
bill
requires
75
percent
of
these
distributions
to
be
made
on
27
a
pro
rata
basis
for
use
in
Iowa
counties
whose
residents
are
28
known
to
the
licensee
to
have
contributed
to
the
gambling
games
29
and
sports
wagering
receipts
of
the
licensee.
30
To
calculate
the
percentage
of
a
distribution
that
will
31
be
made
for
use
in
each
Iowa
county,
the
bill
requires
the
32
licensee
to
collect
and
maintain
records
to
determine
the
33
county
of
residence
of
all
players
and
participants
who
34
contributed
to
the
gambling
games
or
sports
wagering
receipts
35
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of
the
licensee
and
the
amount
each
player
or
participant
1
contributed
to
such
receipts.
The
distribution
to
be
made
2
for
use
in
each
Iowa
county
is
based
on
the
gross
receipts
3
generated
by
players
or
participants
from
a
given
Iowa
county
4
in
comparison
to
the
total
such
gross
receipts
generated
by
5
players
or
participants
from
all
Iowa
counties.
The
bill
6
requires
receipts
generated
by
persons
who
are
not
residents
7
of
Iowa
or
whose
county
of
residence
cannot
be
verified
to
be
8
distributed
proportionally
among
Iowa
counties
based
on
the
9
same
calculation.
The
bill
does
not
restrict
the
distribution
10
of
gambling
games
or
sports
wagering
receipts
in
excess
of
11
75
percent
of
the
moneys
distributed.
The
bill
requires
12
each
licensee
to
file
an
annual
report
with
the
state
racing
13
and
gaming
commission
(commission)
regarding
distributions
14
made
by
the
licensee,
which
the
commission
shall
post
on
the
15
commission’s
internet
site.
16
A
licensee
who
fails
to
make
distributions
as
required
by
17
the
bill
shall
be
subject
to
a
civil
penalty
not
to
exceed
18
5
percent
of
the
total
amount
of
moneys
required
to
be
19
distributed
by
the
licensee,
to
be
collected
by
the
commission
20
and
deposited
in
the
general
fund
of
the
state.
The
bill
21
allows
the
commission
to
order
the
redistribution
of
moneys
22
that
are
not
distributed
as
required
by
the
bill.
The
bill
23
also
allows
the
commission
to
impose
additional
discipline
on
a
24
licensee
that
willfully
or
repeatedly
fails
to
comply
with
the
25
bill,
which
may
include
suspension
of
the
licensee’s
license.
26
The
bill
applies
to
gambling
games
and
sports
wagering
27
receipts
collected
in
a
fiscal
year
beginning
on
or
after
the
28
effective
date
of
the
bill.
29
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