S.F. _____ 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 by striking the subsection and inserting in lieu thereof the 26 following: 27 9. A qualified sponsoring organization licensed to conduct 28 or operate gambling games under this chapter shall ensure that 29 all of the following requirements are met: 30 a. The board of directors of the qualified sponsoring 31 organization shall be residents of this state and shall 32 include, at the option of each applicable county and city, 33 a member of the county board of supervisors and a member of 34 the city council for each county and city that has a licensed 35 -1- LSB 5802XC (3) 88 ec/rn 1/ 4

S.F. _____ gambling games facility in which the qualified sponsoring 1 organization conducts or operates gambling games as ex 2 officio, nonvoting members of the board. The ex officio 3 members shall be selected by the applicable county board of 4 supervisors or city council, shall not be required to enter 5 into a nondisclosure agreement as a condition for service on 6 the board, and shall serve terms of the same duration as voting 7 members of the board. 8 b. If applicable, an organization other than a municipality 9 that receives contributions from the qualified sponsoring 10 organization to distribute grants for educational, civic, 11 public, charitable, patriotic, or religious uses shall comply 12 with the requirements of paragraph “a” regarding the board of 13 directors of the organization. 14 c. The qualified sponsoring organization and, if applicable, 15 an organization described in paragraph “b” , shall conduct 16 and submit to the commission an audit of the organization’s 17 operations consistent with section 99F.13. 18 Sec. 3. Section 99F.19, subsection 1, Code 2020, is amended 19 to read as follows: 20 1. A licensee or a person acting on behalf of a licensee 21 shall be provided electronic access to the names of the 22 persons indebted to a claimant agency pursuant to the process 23 established pursuant to section 99F.4, subsection 26 . The 24 electronic access provided by the claimant agency shall include 25 access to the names of the debtors, their social security 26 numbers, and any other information that assists the licensee 27 in identifying the debtors. If the name of a debtor provided 28 to the licensee through electronic access is retrieved by the 29 licensee and the winnings are equal to or greater than one 30 thousand two hundred dollars per occurrence required to be 31 reported on internal revenue service form W-2G for gambling 32 winnings , the retrieval of such a name shall constitute a 33 valid lien upon and claim of lien against the winnings of the 34 debtor whose name is electronically retrieved from the claimant 35 -2- LSB 5802XC (3) 88 ec/rn 2/ 4

S.F. _____ agency. If a debtor’s winnings are equal to or greater than 1 one thousand two hundred dollars per occurrence required to be 2 reported on internal revenue service form W-2G for gambling 3 winnings , the full amount of the debt shall be collectible 4 from any winnings due the debtor without regard to limitations 5 on the amounts that may be collectible in increments through 6 setoff or other proceedings. 7 EXPLANATION 8 The inclusion of this explanation does not constitute agreement with 9 the explanation’s substance by the members of the general assembly. 10 This bill relates to setoff requirements on certain winnings 11 on wagers and qualified sponsoring organizations licensed to 12 conduct or operate gambling games. 13 The bill amends setoff requirements related to winnings on 14 wagers under Code chapters 99D and 99F. Under current law, 15 a debtor who wins money on a wager at a racetrack, excursion 16 gambling boat, or gambling structure in this state is subject 17 to a setoff from those winnings of the amount of debt owed if 18 the winnings are equal to or greater than $1,200. The bill 19 strikes the dollar threshold amount in Code sections 99D.28 and 20 99F.19 and provides that debtors are subject to the setoff if 21 the winnings are required to be reported on internal revenue 22 service form W-2G for gambling winnings. The requirements to 23 file internal revenue service form W-2G depend on the amount of 24 winnings and the type of wager. 25 The bill also amends provisions relating to qualified 26 sponsoring organizations licensed to conduct or operate 27 gambling games under Code chapter 99F. 28 Code section 99F.6, subsection 9, relating to the board 29 of directors of a qualified sponsoring organization, is 30 stricken and rewritten by the bill. The bill retains the 31 current requirement that the board of directors of a qualified 32 sponsoring organization be residents of the state and that the 33 board of directors include a member of the county board of 34 supervisors and city council of each applicable county and city 35 -3- LSB 5802XC (3) 88 ec/rn 3/ 4

S.F. _____ that has a licensed facility as ex officio nonvoting members of 1 the board. The bill further provides that selection of these 2 nonvoting members is at the option of the applicable county or 3 city and that the ex officio members shall not be required to 4 enter into a nondisclosure agreement as a condition for service 5 on the board. The bill also provides that the provisions 6 governing board members of a qualified sponsoring organization 7 also apply to an organization that receives contributions from 8 the qualified sponsoring organization to distribute grants 9 for charitable uses. The bill requires that the qualified 10 sponsoring organization and, if applicable, an organization 11 that receives contributions from the qualified sponsoring 12 organization to distribute grants, shall conduct and submit to 13 the racing and gaming commission an audit on the organization’s 14 activities consistent with the requirements of Code section 15 99F.13. 16 -4- LSB 5802XC (3) 88 ec/rn 4/ 4