Text: HF00563 Text: HF00565 Text: HF00500 - HF00599 Text: HF Index Bills and Amendments: General Index Bill History: General Index
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",and1 11 or which regularly conducts, as one of its substantial exempt1 12purposes,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, thequalifying organizationlicensee shall be 1 28 required to distributethesuch amountof net unrelated1 29business taxable incometo 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 whichitthe licensee 1 32 operates.Distributions to these organizations made during1 33the year in which the unrelated business income was earned1 34shall be treated as included in the required distributions for1 35this 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 20Before aA qualified sponsoring organizationislicensed to 2 21 operate gambling games under this chapter, the qualified2 22sponsoring organizationshallcertify thatdistribute 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 distributedas winnings to players or 2 26 participants orwill be distributedshall 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 2640YH 76 3 35 tj/jj/8
Text: HF00563 Text: HF00565 Text: HF00500 - HF00599 Text: HF Index Bills and Amendments: General Index Bill History: General Index
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