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Text: HF00560                           Text: HF00562
Text: HF00500 - HF00599                 Text: HF Index
Bills and Amendments: General Index     Bill History: General Index

House File 561

Partial Bill History

Bill Text

PAG LIN
  1  1    Section 1.  Section 99D.8, unnumbered paragraphs 1 and 2,
  1  2 Code 1995, are amended to read as follows:
  1  3    A qualifying organization, as defined in section
  1  4 513(d)(2)(C) of the Internal Revenue Code, as defined in
  1  5 section 422.3, exempt from federal income taxation under
  1  6 sections 501(c)(3), 501(c)(4), or 501(c)(5) of the Internal
  1  7 Revenue Code or a nonprofit corporation organized under the
  1  8 laws of this state, whether or not it is exempt from federal
  1  9 income taxation, which is organized to promote those purposes
  1 10 enumerated in section 99B.7, subsection 3, paragraph "b", and
  1 11 which regularly conducts, as one of its substantial exempt
  1 12 purposes, an agricultural and educational fair or exposition
  1 13 for the promotion of the horse, dog, or other livestock
  1 14 breeding industries of the state, or an agency,
  1 15 instrumentality, or political subdivision of the state, may
  1 16 apply to the commission for a license to conduct horse or dog
  1 17 racing.  The application shall be filed with the administrator
  1 18 of the commission at least sixty days before the first day of
  1 19 the horse race or dog race meeting which the organization
  1 20 proposes to conduct, shall specify the day or days when and
  1 21 the exact location where it proposes to conduct racing, and
  1 22 shall be in a form and contain information as the commission
  1 23 prescribes.
  1 24    If any part of the net income of a licensee is determined
  1 25 to be unrelated business taxable income as defined in sections
  1 26 511 through 514 of the Internal Revenue Code, or is otherwise
  1 27 taxable, the qualifying organization licensee shall be
  1 28 required to distribute the such amount of net unrelated
  1 29 business taxable income to political subdivisions in the state
  1 30 and organizations described in section 501(c)(3) of the
  1 31 Internal Revenue Code in the county in which it the licensee
  1 32 operates.  Distributions to these organizations made during
  1 33 the year in which the unrelated business income was earned
  1 34 shall be treated as included in the required distributions for
  1 35 this purpose.
  2  1    Sec. 2.  Section 99F.1, subsection 14, Code 1995, is
  2  2 amended to read as follows:
  2  3    14.  "Qualified sponsoring organization" means a nonprofit
  2  4 corporation organized under the laws of this state, whether or
  2  5 not it is exempt from federal income taxation, or a person or
  2  6 association that can show to the satisfaction of the
  2  7 commission that the person or association is eligible for
  2  8 exemption from federal income taxation under section
  2  9 501(c)(3), 501(c)(4), 501(c)(5), 501(c)(6), 501(c)(7),
  2 10 501(c)(8), 501(c)(10), or 501(c)(19) of the Internal Revenue
  2 11 Code as defined in section 422.3.
  2 12    Sec. 3.  Section 99F.6, subsection 4, paragraph a, Code
  2 13 1995, is amended to read as follows:
  2 14    a.  Before a license is granted, the division of criminal
  2 15 investigation of the department of public safety shall conduct
  2 16 a thorough background investigation of the applicant for a
  2 17 license to operate a gambling game operation on an excursion
  2 18 gambling boat.  The applicant shall provide information on a
  2 19 form as required by the division of criminal investigation.
  2 20 Before a A qualified sponsoring organization is licensed to
  2 21 operate gambling games under this chapter, the qualified
  2 22 sponsoring organization shall certify that distribute the
  2 23 receipts of all gambling games, less reasonable expenses,
  2 24 charges, taxes, fees, and deductions allowed under this
  2 25 chapter, will be distributed as winnings to players or
  2 26 participants or will be distributed shall distribute the
  2 27 receipts for educational, civic, public, charitable,
  2 28 patriotic, or religious uses as defined in section 99B.7,
  2 29 subsection 3, paragraph "b".  However, if a licensee who is
  2 30 also licensed to conduct pari-mutuel wagering at a horse
  2 31 racetrack has unpaid debt from the pari-mutuel racetrack
  2 32 operations, the first receipts of the gambling games operated
  2 33 within the racetrack enclosure less reasonable operating
  2 34 expenses, taxes, and fees allowed under this chapter shall be
  2 35 first used to pay the annual indebtedness.  The commission
  3  1 shall authorize, subject to the debt payments for horse
  3  2 racetracks and the provisions of paragraph "b" for dog
  3  3 racetracks, a licensee who is also licensed to conduct pari-
  3  4 mutuel dog or horse racing to use receipts from gambling games
  3  5 within the racetrack enclosure to supplement purses for races
  3  6 particularly for Iowa-bred horses pursuant to an agreement
  3  7 which shall be negotiated between the licensee and
  3  8 representatives of the dog or horse owners.  A qualified
  3  9 sponsoring organization shall not make a contribution to a
  3 10 candidate, political committee, candidate's committee, state
  3 11 statutory political committee, county statutory political
  3 12 committee, national political party, or fund-raising event as
  3 13 these terms are defined in section 56.2.  The membership of
  3 14 the board of directors of a qualified sponsoring organization
  3 15 shall represent a broad interest of the communities.
  3 16    Sec. 4.  EFFECTIVE AND APPLICABILITY DATES.  This Act,
  3 17 being deemed of immediate importance, takes effect upon
  3 18 enactment and applies retroactively to January 1, 1995.  
  3 19                           EXPLANATION
  3 20    This bill provides that a qualified sponsoring
  3 21 organization, in lieu of being eligible for an exemption from
  3 22 federal income taxation, may show that it is an Iowa nonprofit
  3 23 corporation, whether tax-exempt or not, for the purposes of
  3 24 qualifying to be a licensee to conduct pari-mutuel wagering at
  3 25 racetracks or to conduct gambling games on excursion gambling
  3 26 boats.  However, unrelated business taxable income of a
  3 27 licensee must be distributed to political subdivisions of the
  3 28 state and organizations described in section 501(c)(3) of the
  3 29 Internal Revenue Code, such as educational, testing for public
  3 30 safety, literary, charitable, patriotic, or religious
  3 31 organizations.
  3 32    This bill takes effect upon enactment and applies
  3 33 retroactively to January 1, 1995.  
  3 34 LSB 2621YH 76
  3 35 tj/jj/8.1
     

Text: HF00560                           Text: HF00562
Text: HF00500 - HF00599                 Text: HF Index
Bills and Amendments: General Index     Bill History: General Index

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