HF 2196 (LSB 5605HV (2) 88)

HOUSE FILE 2196

BY  COMMITTEE ON STATE GOVERNMENT

(SUCCESSOR TO HSB 502)

A BILL FOR

An Act relating to setoff requirements concerning certain winnings on wagers.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  Section 99D.28, subsection 1, Code 2020, is amended to read as follows:
   1.  A licensee or a person acting on behalf of a licensee shall be provided electronic access to the names of the persons indebted to a claimant agency pursuant to the process established pursuant to section 99D.7, subsection 24. The electronic access provided by the claimant agency shall include access to the names of the debtors, their social security numbers, and any other information that assists the licensee in identifying the debtors. If the name of a debtor provided to the licensee through electronic access is retrieved by the licensee and the winnings are equal to or greater than one thousand two hundred dollars per occurrence required to be reported on internal revenue service form W-2G for gambling winnings, the retrieval of such a name shall constitute a valid lien upon and claim of lien against the winnings of the debtor whose name is electronically retrieved from the claimant agency. If a debtor’s winnings are equal to or greater than one thousand two hundred dollars per occurrence required to be reported on internal revenue service form W-2G for gambling winnings, the full amount of the debt shall be collectible from any winnings due the debtor without regard to limitations on the amounts that may be collectible in increments through setoff or other proceedings.
    Sec. 2.  Section 99F.19, subsection 1, Code 2020, is amended to read as follows:
   1.  A licensee or a person acting on behalf of a licensee shall be provided electronic access to the names of the persons indebted to a claimant agency pursuant to the process established pursuant to section 99F.4, subsection 26. The electronic access provided by the claimant agency shall include access to the names of the debtors, their social security numbers, and any other information that assists the licensee in identifying the debtors. If the name of a debtor provided to the licensee through electronic access is retrieved by the licensee and the winnings are equal to or greater than one thousand two hundred dollars per occurrence required to be reported on internal revenue service form W-2G for gambling winnings, the retrieval of such a name shall constitute a valid lien upon and claim of lien against the winnings of the debtor whose name is electronically retrieved from the claimant agency. If a debtor’s winnings are equal to or greater than one thousand two hundred dollars per occurrence required to be reported on internal revenue service form W-2G for gambling winnings, the full amount of the debt shall be collectible from any winnings due the debtor without regard to limitations on the amounts that may be collectible in increments through setoff or other proceedings.
EXPLANATION
The inclusion of this explanation does not constitute agreement with
the explanation’s substance by the members of the general assembly.
   This bill concerns setoff requirements related to winnings on wagers under Code chapters 99D and 99F.
   Under current law, a debtor who wins money on a wager at a racetrack, excursion gambling boat, or gambling structure in this state is subject to a setoff from those winnings of the amount of debt owed if the winnings are equal to or greater than $1,200. The bill strikes the dollar threshold amount in Code sections 99D.28 and 99F.19 and provides that debtors are subject to the setoff if the winnings are required to be reported on internal revenue service form W-2G for gambling winnings. The requirements to file internal revenue service form W-2G depend on the amount of winnings and the type of wager.