House File 438 - Introduced HOUSE FILE 438 BY COMMITTEE ON APPROPRIATIONS (SUCCESSOR TO HF 206) (SUCCESSOR TO HSB 49) (COMPANION TO SF 177 BY COMMITTEE ON VETERANS AFFAIRS) A BILL FOR An Act concerning lottery games and revenue for support of 1 veterans. 2 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 3 TLSB 1182HZ (3) 86 ec/nh

H.F. 438 Section 1. Section 35A.13, subsection 4, paragraph a, Code 1 2015, is amended to read as follows: 2 a. The minimum balance of the trust fund required prior 3 to expenditure of moneys from the trust fund is five million 4 dollars. Once the minimum balance is reached, the interest 5 and earnings on the fund and the first three hundred thousand 6 dollars transferred each fiscal year pursuant to section 99G.9A 7 99G.39 from the lottery fund to the trust fund are appropriated 8 to the commission to be used to achieve the purposes of 9 subsection 6 of this section . Moneys appropriated to the 10 commission that remain unobligated or unexpended at the end of 11 each fiscal year shall revert to the trust fund. It is the 12 intent of the general assembly that the balance in the trust 13 fund reach fifty million dollars. 14 Sec. 2. Section 99G.39, Code 2015, is amended by adding the 15 following new subsection: 16 NEW SUBSECTION . 2A. Two million five hundred thousand 17 dollars in lottery revenues shall be transferred each fiscal 18 year to the veterans trust fund established pursuant to section 19 35A.13 prior to deposit of the lottery revenues in the general 20 fund pursuant to section 99G.40. However, if the balance of 21 the veterans trust fund is fifty million dollars or more, the 22 moneys shall be appropriated to the department of revenue for 23 distribution to county directors of veteran affairs, with fifty 24 percent of the moneys to be distributed equally to each county 25 and fifty percent of the moneys to be distributed to each 26 county based upon the population of veterans in the county, 27 so long as the moneys distributed to a county do not supplant 28 moneys appropriated by that county for the county director of 29 veteran affairs. 30 Sec. 3. Section 99G.39, subsection 3, paragraph a, Code 31 2015, is amended to read as follows: 32 a. Notwithstanding subsection 1 , if gaming revenues under 33 sections 99D.17 and 99F.11 are insufficient in a fiscal year to 34 meet the total amount of such revenues directed to be deposited 35 -1- LSB 1182HZ (3) 86 ec/nh 1/ 2

H.F. 438 in the vision Iowa fund and the school infrastructure fund 1 during the fiscal year pursuant to section 8.57, subsection 2 5 , paragraph “e” , the difference shall be paid from lottery 3 revenues prior to deposit of the lottery revenues in the 4 general fund and transfer of lottery revenues to the veterans 5 trust fund as provided in subsection 2A . If lottery revenues 6 are insufficient during the fiscal year to pay the difference, 7 the remaining difference shall be paid from lottery revenues 8 prior to deposit of lottery revenues in the general fund and 9 the transfer of lottery revenues to the veterans trust fund as 10 provided in subsection 2A in subsequent fiscal years as such 11 revenues become available. 12 Sec. 4. REPEAL. Section 99G.9A, Code 2015, is repealed. 13 EXPLANATION 14 The inclusion of this explanation does not constitute agreement with 15 the explanation’s substance by the members of the general assembly. 16 This bill repeals Code section 99G.9A, which requires the 17 lottery to conduct a limited series of lottery games with 18 the revenues from the games to be used to provide aid for 19 veterans through deposit in the veterans trust fund or, if the 20 balance in the veterans trust fund exceeds $50 million, for 21 distribution to county directors of veteran affairs. 22 Instead, the bill amends Code section 99G.39 to provide that 23 $2.5 million in lottery revenues shall be transferred each 24 fiscal year for distribution to provide aid to veterans in the 25 same manner as provided by current Code section 99G.9A. The 26 bill also provides that the $2.5 million transfer is subject 27 to the requirement that lottery revenues be used for deposit 28 in the vision Iowa fund if gaming revenues under Code sections 29 99D.17 and 99F.11 that would otherwise be deposited in these 30 funds are insufficient in a fiscal year. 31 -2- LSB 1182HZ (3) 86 ec/nh 2/ 2