HSB 614 (LSB 5831YC (3) 89)

HOUSE FILE _____ 

BY  (PROPOSED COMMITTEE ON STATE GOVERNMENT BILL BY CHAIRPERSON KAUFMANN)

A BILL FOR

An Act appropriating certain tax receipts concerning internet fantasy sports contests and sports wagering to the county endowment fund.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  Section 8.57, subsection 6, Code 2022, is amended by adding the following new paragraphs:
   NEW PARAGRAPH.  f.  For the fiscal year beginning July 1, 2022, any unobligated and unencumbered moneys in the sports wagering receipts fund from the previous fiscal year are appropriated to the county endowment fund created in section 15E.311.
   NEW PARAGRAPH.  g.  This subsection is repealed June 30, 2023.
    Sec. 2.  Section 15E.311, subsection 3, paragraph a, Code 2022, is amended to read as follows:
   a.  At the end of each fiscal year, moneys in the fund shall be transferred into separate accounts within the fund and designated for use by each county in which no licensee authorized to conduct gambling games under chapter 99F was located during that fiscal year. Moneys transferred to county accounts shall be divided equally among the counties. Moneys transferred into an account for a county shall be transferred by the department to an eligible county recipient for that county. Of the moneys transferred, an eligible county recipient shall distribute seventy-five percent of the moneys as grants to charitable organizations for charitable purposes in that county and shall retain twenty-five percent of the moneys for use in establishing a permanent endowment fund for the benefit of charitable organizations for charitable purposes. In addition, of the moneys transferred from moneys appropriated to the fund from the sports wagering receipts fund created in section 8.57, subsection 6, and distributed, eligible county recipients shall give consideration for grants, upon application, to a charitable organization that operates a racetrack facility that conducts automobile races in that county. Of the amounts distributed, eligible county recipients shall give special consideration to grants for projects that include significant vertical infrastructure components designed to enhance quality of life aspects within local communities. In addition, as a condition of receiving a grant, the governing body of a charitable organization receiving a grant shall approve all expenditures of grant moneys and shall allow a state audit of expenditures of all grant moneys.
    Sec. 3.  Section 99E.6, subsection 2, Code 2022, is amended to read as follows:
   2.  The taxes imposed by this section for internet fantasy sports contests authorized under this chapter shall be paid by the internet fantasy sports contest service provider to the treasurer of state as determined by the commission and shall be credited as provided in section 8.57, subsection 6 deposited in the county endowment fund created in section 15E.311.
    Sec. 4.  Section 99F.11, subsection 5, paragraph b, Code 2022, is amended to read as follows:
   b.  The taxes imposed by this subsection for sports wagering authorized under this chapter shall be paid by the licensed operator to the treasurer of state as determined by the commission and shall be credited as provided in section 8.57, subsection 6 deposited in the county endowment fund created in section 15E.311.
EXPLANATION
The inclusion of this explanation does not constitute agreement with
the explanation’s substance by the members of the general assembly.
   This bill provides that taxes imposed and collected for internet fantasy sports contests and sports wagering shall be deposited in the county endowment fund created in Code section 15E.311 and not the sports wagering receipts fund. The bill provides that for the fiscal year beginning July 1, 2022, any unobligated and unencumbered moneys in the sports wagering receipts fund from the previous fiscal year shall be appropriated to the county endowment fund. The bill strikes a reference to the sports wagering receipts fund in Code section 15E.311 and provides that the sports wagering receipts fund is repealed June 30, 2023.