S-5142

   Amend Senate File 2470 as follows:
   1.  Page 1, before line 1 by inserting: 
<DIVISION I
DESIGNATED CONTRACT MARKET TAX>
   2.  Page 1, line 35, by striking <an authorized> and inserting <a>
   3.  Page 3, line 5, by striking <ten> and inserting <twenty>
   4.  Page 3, line 8, by striking <Prediction> and inserting <Designated contract>
   5.  Page 3, after line 25 by inserting: 
   <Sec. ___.  NEW SECTION.  99H.8  Applicability.
   This chapter applies to a designated contract market permitting persons in this state to trade event-driven contracts until such time a court of competent jurisdiction, after all appeals have been exhausted, determines that event-driven contracts are subject to regulation under chapter 99F.>
   6.  Page 5, line 18, after <this> by inserting <division of this>
   7.  Page 5, line 20, by striking <Act enacting section 422.33> and inserting <division of this Act enacting section 422.35>
   8.  Page 5, line 23, by striking <prediction> and inserting <designated contract>
   9.  Page 5, after line 26 by inserting: 
<DIVISION ___
EVENT-DRIVEN CONTRACT EXCISE TAX

   Sec. ___.  NEW SECTION.  453F.1  Definitions.
   As used in this chapter, unless the context otherwise requires:
   1.  “Department” means the department of revenue.
   2.  “Designated contract market” means a digital marketplace for trading event-driven contracts that is also regulated by the federal commodity futures trading commission.
   3.  “Director” means the director of revenue.
   4.  “Economic indicators” means a statistic or data point about an economic activity that allows an analyst to assess current economic performance.
   5.  “Event-driven contract” means a financial derivative traded on a designated contract market that provides a fixed binary payout based upon the occurrence or nonoccurrence of a specific future event that is contingent upon and determined solely by the definitive outcome of a verifiable specific event or external measure rather than being based upon the continuous fluctuation of a security price, commodity value, or interest rate that may or may not correlate with traditional market prices or broad economic measures. An “event-driven contract” is limited to those financial derivatives that provide a fixed binary payout related to sporting activities, lotteries, elections, legislative actions, and economic indicators.
   6.  “Sporting activities” means the outcome of a sporting event, outcomes within the event, or outcomes surrounding the event.
   7.  “Trader” means any person buying or selling event-driven contracts on a designated contract market.
   Sec. ___.  NEW SECTION.  453F.2  Scope of chapter.
   This chapter does not apply to the pari-mutuel system of wagering used or intended to be used in connection with the horse-race or dog-race meetings as authorized under chapter 99D, fantasy sports contests as authorized under chapter 99E, sports wagering authorized under chapter 99F, or other financial derivatives that are not event-driven contracts.
   Sec. ___.  NEW SECTION.  453F.3  Event-driven contract excise tax.
   For the privilege of doing business in the state as a designated contract market, a tax is imposed on the amount to buy an event-driven contract on a designated contract market at the rate of twenty percent of the amount to buy the event-driven contract. The taxes imposed for event-driven contracts under this chapter shall be collected by the designated contract market and paid to the treasurer of state as determined by the department.
   Sec. ___.  NEW SECTION.  453F.4  Revenues.
   All revenues generated under this chapter shall be deposited into the general fund of the state.
   Sec. ___.  NEW SECTION.  453F.5  Administration.
   1.  The director shall administer the excise tax imposed under this chapter as nearly as possible in conjunction with the administration of the state sales and use tax law, except that portion of the law that implements the streamlined sales and use tax agreement. The director shall provide appropriate forms, or provide on the regular state tax forms, for reporting event-driven contract excise tax liability, and for ease of administration may require event-driven contract excise tax liability to be identified, reported, and remitted to the department as sales and use tax liability, provided the department has the ability to properly identify such amounts as event-driven contract excise tax revenues upon receipt.
   2.  The director may require all persons who are engaged in the business of deriving any sales price or purchase price subject to tax under this chapter to register with the department. The director may also require a tax permit applicable only to this section for any designated contract market not collecting, or any trader not paying, taxes under chapter 423.
   3.  Section 422.25, subsection 4, sections 422.30, 422.67, and 422.68, section 422.69, subsection 1, sections 422.70, 422.71, 422.72, 422.74, and 422.75, section 423.14, subsection 1, and sections 423.23, 423.24, 423.25, 423.31 through 423.35, 423.37, 423.39 through 423.42, and 423.47, consistent with the provisions of this chapter, shall apply with respect to the tax authorized under this chapter in the same manner and with the same effect as if the excise taxes on the trades were retail sales taxes within the meaning of those statutes. Notwithstanding this subsection, the director shall provide for monthly filing of returns and for other than monthly filing of returns both as prescribed in section 423.31.
   4.  The tax imposed by this chapter shall not apply with respect to any trades which under the constitution and laws of the United States may not be made the subject of taxation by this state.
   5.  The tax imposed by this chapter shall be in addition to any other taxes imposed by law.
   6.  All excise taxes collected under this chapter by any person are deemed to be held in trust for the state of Iowa.
   7.  The department shall adopt rules pursuant to chapter 17A to administer this chapter.
   Sec. ___.  CONTINGENT EFFECTIVE DATE.  This division of this Act takes effect six months from the date the attorney general notifies the general assembly and the Code editor that the tax imposed in section 99H.5, if enacted by this Act, has been declared unconstitutional or is otherwise unenforceable by the state, and all appeals have been exhausted.>
   10.  Title page, line 3, after <revenues> by inserting <or amounts traded>
   11.  Title page, line 5, by striking <applicability> and inserting <contingent effective date, applicability,>
   12.  By renumbering as necessary.

______________________________
DAN DAWSON