House File 18 - Introduced HOUSE FILE 18 BY SALMON A BILL FOR An Act concerning the distribution of gambling game receipts 1 for charitable purposes. 2 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 3 TLSB 1150YH (2) 87 ec/nh

H.F. 18 Section 1. Section 99F.6, subsection 4, paragraph a, 1 subparagraph (2), Code 2017, is amended to read as follows: 2 (2) A qualified sponsoring organization licensed to operate 3 gambling games under this chapter shall distribute the receipts 4 of all gambling games, less reasonable expenses, charges, 5 taxes, fees, and deductions allowed under this chapter , as 6 winnings to players or participants or shall distribute the 7 receipts for educational, civic, public, charitable, patriotic, 8 or religious uses as defined in section 99B.1 . A qualified 9 sponsoring organization shall provide that any organization 10 exempt from federal income taxes under section 501(c)(19) of 11 the Internal Revenue Code, as defined in section 422.3, shall 12 be eligible for a distribution of adjusted gross receipts for 13 educational, civic, public, charitable, patriotic, or religious 14 uses as required by this subparagraph. However, a licensee 15 to conduct gambling games under this chapter shall, unless an 16 operating agreement for an excursion gambling boat otherwise 17 provides, distribute at least three percent of the adjusted 18 gross receipts for each license year for educational, civic, 19 public, charitable, patriotic, or religious uses as defined in 20 section 99B.1 . However, if a licensee who is also licensed to 21 conduct pari-mutuel wagering at a horse racetrack has unpaid 22 debt from the pari-mutuel racetrack operations, the first 23 receipts of the gambling games operated within the racetrack 24 enclosure less reasonable operating expenses, taxes, and fees 25 allowed under this chapter shall be first used to pay the 26 annual indebtedness. 27 EXPLANATION 28 The inclusion of this explanation does not constitute agreement with 29 the explanation’s substance by the members of the general assembly. 30 This bill requires a qualified sponsoring organization 31 licensed to operate gambling games under Code chapter 99F to 32 provide that any organization exempt from federal income taxes 33 under section 501(c)(19) of the Internal Revenue Code shall 34 be eligible for a distribution of adjusted gross receipts for 35 -1- LSB 1150YH (2) 87 ec/nh 1/ 2

H.F. 18 educational, civic, public, charitable, patriotic, or religious 1 uses. 2 -2- LSB 1150YH (2) 87 ec/nh 2/ 2