Text: SSB02335 Text: SSB02337 Text: SSB02300 - SSB02399 Text: SSB Index Bills and Amendments: General Index Bill History: General Index
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PAG LIN 1 1 Section 1. Section 99D.8, unnumbered paragraph 2, Code 1 2 Supplement 1995, is amended to read as follows: 1 3 If any part of the net income of a licensee is determined 1 4 to be unrelated business taxable income as defined in sections 1 5 511 through 514 of the Internal Revenue Code, or is otherwise 1 6taxablesubject to federal or state income taxation, the 1 7 licensee shall be required to distribute such amount to 1 8 political subdivisions in the state and organizations 1 9 described in section 501(c)(3) of the Internal Revenue Code in 1 10 the county in which the licensee operates unless such amount 1 11 is used or set aside for retiring or prepaying debt of the 1 12 licensee or making capital improvements to facilities used by 1 13 the licensee. A licensee has no obligation to distribute 1 14 funds used or set aside for the payment of indebtedness or 1 15 capital improvements and a potential recipient has no claim or 1 16 right with respect to those funds. 1 17 Sec. 2. Section 99F.6, subsection 4, paragraph a, Code 1 18 Supplement 1995, is amended to read as follows: 1 19 a. Before a license is granted, the division of criminal 1 20 investigation of the department of public safety shall conduct 1 21 a thorough background investigation of the applicant for a 1 22 license to operate a gambling game operation on an excursion 1 23 gambling boat. The applicant shall provide information on a 1 24 form as required by the division of criminal investigation. A 1 25 qualified sponsoring organization licensed to operate gambling 1 26 games under this chapter shall distribute the receipts of all 1 27 gambling games, less reasonable expenses, charges, taxes, 1 28 fees, and deductions including debt service payments or 1 29 prepayment of debt of the licensee and set asides for current 1 30 or projected capital improvements allowed under this chapter, 1 31 as winnings to players or participants or shall distribute the 1 32 receipts for educational, civic, public, charitable, 1 33 patriotic, or religious uses as defined in section 99B.7, 1 34 subsection 3, paragraph "b". However, if a licensee who is 1 35 also licensed to conduct pari-mutuel wagering at a horse or 2 1 dog racetrack has unpaid debtfrom the pari-mutuel racetrack2 2operations, the first receipts of the gambling gamesoperated2 3within the racetrack enclosureless reasonable operating 2 4 expenses, taxes, and fees allowed under this chaptershallmay 2 5 be first used to pay theannualindebtedness. The commission 2 6 shall authorize, subject to the debt payments for horse and 2 7 dog racetracks and the provisions of paragraph "b" for dog 2 8 racetracks, a licensee who is also licensed to conduct pari- 2 9 mutuel dog or horse racing to use receipts from gambling games 2 10 within the racetrack enclosure to supplement purses for races 2 11 particularly for Iowa-bred horses pursuant to an agreement 2 12 which shall be negotiated between the licensee and 2 13 representatives of the dog or horse owners. A qualified 2 14 sponsoring organization shall not make a contribution to a 2 15 candidate, political committee, candidate's committee, state 2 16 statutory political committee, county statutory political 2 17 committee, national political party, or fund-raising event as 2 18 these terms are defined in section 56.2. The membership of 2 19 the board of directors of a qualified sponsoring organization 2 20 shall represent a broad interest of the communities. 2 21 EXPLANATION 2 22 This bill allows horse and dog pari-mutuel racetrack 2 23 licensees who have lost their tax exempt status or have 2 24 unrelated business income to dedicate the funds to repay 2 25 indebtedness or to make capital improvements to their 2 26 facilities. 2 27 The bill also provides that a pari-mutuel racetrack 2 28 licensee and an excursion gambling boat licensee may pay any 2 29 debt related to its gambling activities, but does not require 2 30 the debt payment from the first receipts available. The 2 31 licensees may prepay indebtedness or distribute funds to civic 2 32 and charitable organizations, or both. 2 33 LSB 4376SC 76 2 34 tj/jw/5
Text: SSB02335 Text: SSB02337 Text: SSB02300 - SSB02399 Text: SSB Index Bills and Amendments: General Index Bill History: General Index
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