House File 2548 - Introduced HOUSE FILE 2548 BY COMMITTEE ON WAYS AND MEANS (SUCCESSOR TO HF 2286) (SUCCESSOR TO HSB 614) A BILL FOR An Act appropriating certain tax receipts concerning internet 1 fantasy sports contests and sports wagering to the county 2 endowment fund and for gambling treatment programs. 3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 4 TLSB 5831HZ (2) 89 ec/rn

H.F. 2548 Section 1. Section 8.57, subsection 6, Code 2022, is amended 1 by adding the following new paragraphs: 2 NEW PARAGRAPH . f. For the fiscal year beginning July 1, 3 2022, any unobligated and unencumbered moneys in the sports 4 wagering receipts fund from the previous fiscal year are 5 appropriated to the county endowment fund created in section 6 15E.311. 7 NEW PARAGRAPH . g. This subsection is repealed June 30, 8 2023. 9 Sec. 2. Section 15E.311, subsection 3, paragraph a, Code 10 2022, is amended to read as follows: 11 a. At the end of each fiscal year, moneys in the fund 12 shall be transferred into separate accounts within the fund 13 and designated for use by each county in which no licensee 14 authorized to conduct gambling games under chapter 99F was 15 located during that fiscal year. Moneys transferred to 16 county accounts shall be divided equally among the counties. 17 Moneys transferred into an account for a county shall be 18 transferred by the department to an eligible county recipient 19 for that county. Of the moneys transferred, an eligible county 20 recipient shall distribute seventy-five percent of the moneys 21 as grants to charitable organizations for charitable purposes 22 in that county and shall retain twenty-five percent of the 23 moneys for use in establishing a permanent endowment fund 24 for the benefit of charitable organizations for charitable 25 purposes. In addition, of the moneys transferred from moneys 26 appropriated to the fund from the sports wagering receipts 27 fund created in section 8.57, subsection 6 , and distributed, 28 eligible county recipients shall give consideration for grants, 29 upon application, to a charitable organization that operates 30 a racetrack facility that conducts automobile races in that 31 county. Of the amounts distributed, eligible county recipients 32 shall give special consideration to grants for projects that 33 include significant vertical infrastructure components designed 34 to enhance quality of life aspects within local communities. 35 -1- LSB 5831HZ (2) 89 ec/rn 1/ 3

H.F. 2548 In addition, as a condition of receiving a grant, the governing 1 body of a charitable organization receiving a grant shall 2 approve all expenditures of grant moneys and shall allow a 3 state audit of expenditures of all grant moneys. 4 Sec. 3. Section 99E.6, subsection 2, Code 2022, is amended 5 to read as follows: 6 2. The taxes imposed by this section for internet fantasy 7 sports contests authorized under this chapter shall be paid by 8 the internet fantasy sports contest service provider to the 9 treasurer of state as determined by the commission and shall be 10 credited as provided in section 8.57, subsection 6 deposited in 11 the county endowment fund created in section 15E.311 . 12 Sec. 4. Section 99F.11, subsection 5, paragraph b, Code 13 2022, is amended to read as follows: 14 b. The taxes imposed by this subsection for sports wagering 15 authorized under this chapter shall be paid by the licensed 16 operator to the treasurer of state as determined by the 17 commission and shall be credited as provided in section 8.57, 18 subsection 6. distributed as follows: 19 (1) One million seven hundred fifty thousand dollars of 20 taxes paid is appropriated each fiscal year to the department 21 of public health for purposes of the gambling treatment program 22 established in section 135.150. 23 (2) The remaining amount of taxes paid shall be deposited in 24 the county endowment fund created in section 15E.311. 25 EXPLANATION 26 The inclusion of this explanation does not constitute agreement with 27 the explanation’s substance by the members of the general assembly. 28 This bill provides that taxes imposed and collected for 29 internet fantasy sports contests shall be deposited in the 30 county endowment fund created in Code section 15E.311 and not 31 the sports wagering receipts fund. The bill also provides 32 that taxes imposed and collected for sports wagering shall not 33 be deposited in the sports wagering receipts fund. Instead, 34 the bill provides that the first $1.75 million of taxes paid 35 -2- LSB 5831HZ (2) 89 ec/rn 2/ 3

H.F. 2548 on sports wagering shall be appropriated to the department of 1 public health for purposes of the gambling treatment program 2 with the remaining amount of taxes paid deposited in the 3 county endowment fund created in Code section 15E.311. The 4 bill provides that for the fiscal year beginning July 1, 5 2022, any unobligated and unencumbered moneys in the sports 6 wagering receipts fund from the previous fiscal year shall be 7 appropriated to the county endowment fund. The bill strikes a 8 reference to the sports wagering receipts fund in Code section 9 15E.311 and provides that the sports wagering receipts fund is 10 repealed June 30, 2023. 11 -3- LSB 5831HZ (2) 89 ec/rn 3/ 3