House File 2623 - Introduced HOUSE FILE 2623 BY COMMITTEE ON WAYS AND MEANS (SUCCESSOR TO HF 2196) (SUCCESSOR TO HSB 502) (COMPANION TO SF 2240 BY COMMITTEE ON STATE GOVERNMENT) A BILL FOR An Act relating to gambling facility licensees concerning 1 setoff requirements on certain winnings on wagers and 2 qualified sponsoring organizations. 3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 4 TLSB 5605HZ (2) 88 ec/rn

H.F. 2623 Section 1. Section 99D.28, subsection 1, Code 2020, is 1 amended to read as follows: 2 1. A licensee or a person acting on behalf of a licensee 3 shall be provided electronic access to the names of the 4 persons indebted to a claimant agency pursuant to the process 5 established pursuant to section 99D.7, subsection 24 . The 6 electronic access provided by the claimant agency shall include 7 access to the names of the debtors, their social security 8 numbers, and any other information that assists the licensee 9 in identifying the debtors. If the name of a debtor provided 10 to the licensee through electronic access is retrieved by the 11 licensee and the winnings are equal to or greater than one 12 thousand two hundred dollars per occurrence required to be 13 reported on internal revenue service form W-2G for gambling 14 winnings , the retrieval of such a name shall constitute a 15 valid lien upon and claim of lien against the winnings of the 16 debtor whose name is electronically retrieved from the claimant 17 agency. If a debtor’s winnings are equal to or greater than 18 one thousand two hundred dollars per occurrence required to be 19 reported on internal revenue service form W-2G for gambling 20 winnings , the full amount of the debt shall be collectible 21 from any winnings due the debtor without regard to limitations 22 on the amounts that may be collectible in increments through 23 setoff or other proceedings. 24 Sec. 2. Section 99F.6, subsection 9, Code 2020, is amended 25 to read as follows: 26 9. The board of directors of a qualified sponsoring 27 organization licensed to conduct or operate gambling games 28 under this chapter shall be residents of this state and shall 29 include, at the option of each applicable county and city, as 30 ex officio, nonvoting members of the board, a member of the 31 county board of supervisors and a member of a city council 32 for each county and city that has a licensed gambling games 33 facility which is conducted or operated by the qualified 34 sponsoring organization. The If a vacancy for any ex officio 35 -1- LSB 5605HZ (2) 88 ec/rn 1/ 3

H.F. 2623 members member occurs, the vacancy shall serve terms of the 1 same duration as voting members of the board be filled in the 2 same manner as the original appointment for the remainder of 3 the unexpired term of the vacancy . However, this subsection 4 shall not apply to an agency, instrumentality, or political 5 subdivision of the state that is licensed to conduct gambling 6 games under this chapter . 7 Sec. 3. Section 99F.19, subsection 1, Code 2020, is amended 8 to read as follows: 9 1. A licensee or a person acting on behalf of a licensee 10 shall be provided electronic access to the names of the 11 persons indebted to a claimant agency pursuant to the process 12 established pursuant to section 99F.4, subsection 26 . The 13 electronic access provided by the claimant agency shall include 14 access to the names of the debtors, their social security 15 numbers, and any other information that assists the licensee 16 in identifying the debtors. If the name of a debtor provided 17 to the licensee through electronic access is retrieved by the 18 licensee and the winnings are equal to or greater than one 19 thousand two hundred dollars per occurrence required to be 20 reported on internal revenue service form W-2G for gambling 21 winnings , the retrieval of such a name shall constitute a 22 valid lien upon and claim of lien against the winnings of the 23 debtor whose name is electronically retrieved from the claimant 24 agency. If a debtor’s winnings are equal to or greater than 25 one thousand two hundred dollars per occurrence required to be 26 reported on internal revenue service form W-2G for gambling 27 winnings , the full amount of the debt shall be collectible 28 from any winnings due the debtor without regard to limitations 29 on the amounts that may be collectible in increments through 30 setoff or other proceedings. 31 EXPLANATION 32 The inclusion of this explanation does not constitute agreement with 33 the explanation’s substance by the members of the general assembly. 34 This bill relates to setoff requirements on certain winnings 35 -2- LSB 5605HZ (2) 88 ec/rn 2/ 3

H.F. 2623 on wagers and qualified sponsoring organizations licensed to 1 conduct or operate gambling games. 2 The bill amends setoff requirements related to winnings on 3 wagers under Code chapters 99D and 99F. Under current law, 4 a debtor who wins money on a wager at a racetrack, excursion 5 gambling boat, or gambling structure in this state is subject 6 to a setoff from those winnings of the amount of debt owed if 7 the winnings are equal to or greater than $1,200. The bill 8 strikes the dollar threshold amount in Code sections 99D.28 and 9 99F.19 and provides that debtors are subject to the setoff if 10 the winnings are required to be reported on internal revenue 11 service form W-2G for gambling winnings. The requirements to 12 file internal revenue service form W-2G depend on the amount of 13 winnings and the type of wager. 14 The bill also amends provisions relating to qualified 15 sponsoring organizations licensed to conduct or operate 16 gambling games under Code chapter 99F. 17 Code section 99F.6, subsection 9, relating to the board of 18 directors of a qualified sponsoring organization, is amended 19 to provide that the current requirement to include as ex 20 officio, nonvoting members of the board a member of the county 21 board of supervisors and a member of a city council for each 22 county or city that has a licensed gambling games facility is 23 at the option of each applicable county and city. The bill 24 also provides for the procedure if a vacancy occurs for any ex 25 officio, nonvoting member. 26 -3- LSB 5605HZ (2) 88 ec/rn 3/ 3