House Study Bill 641 - Introduced HOUSE FILE _____ BY (PROPOSED COMMITTEE ON STATE GOVERNMENT BILL BY CHAIRPERSON KAUFMANN) A BILL FOR An Act relating to pari-mutuel wagering, concerning 1 distribution of horse racing purse moneys and establishing a 2 fund for certain race horse organizations. 3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 4 TLSB 5583YC (3) 89 ec/rn

H.F. _____ Section 1. Section 99D.7, subsection 5, paragraph c, 1 subparagraph (2), Code 2022, is amended to read as follows: 2 (2) Of the purse moneys designated for thoroughbred racing, 3 two four percent shall be distributed to an organization 4 representing owners of thoroughbred race horses for the purpose 5 of paying the annual operating expenses of the organization 6 and for the promotion and marketing of Iowa-bred horses. The 7 organization receiving such purse moneys shall complete and 8 provide to the commission an annual audit and accounting of the 9 allocation of such moneys. 10 Sec. 2. NEW SECTION . 99D.27A Iowa race horse aftercare 11 organization assistance fund. 12 1. An Iowa race horse aftercare organization assistance 13 fund is created in the state treasury under the control of the 14 racing and gaming commission. 15 2. The fund shall consist of fines collected by the 16 commission under this chapter and such other moneys deposited 17 in the fund. 18 3. Moneys in the fund shall be distributed, under the 19 sole control of the commission, to organizations, exempt from 20 federal income taxation under section 501(c)(3) of the Internal 21 Revenue Code, that are dedicated to race horse aftercare 22 subject to the requirements of this section. 23 4. The commission shall determine the method by which 24 moneys in the fund shall be distributed, with priority given to 25 organizations primarily involved in rehabilitation, retraining, 26 and rehoming of former race horses that raced in the state 27 of Iowa that have governing boards comprised of pari-mutuel 28 industry occupational license holders. Moneys shall only be 29 distributed to organizations shown to have been in existence 30 for a minimum of three years. The distribution decisions of 31 the commission shall be final. 32 5. Members of the commission, employees of the commission, 33 and any individual that the commission had assist in the 34 distribution determination shall be held harmless against any 35 -1- LSB 5583YC (3) 89 ec/rn 1/ 3

H.F. _____ claim of liability made by any person or organization arising 1 out of the distribution of the moneys from the fund by the 2 commission. 3 6. Section 8.33 does not apply to moneys in the fund. 4 Notwithstanding section 12C.7, subsection 2, interest or 5 earnings on moneys deposited in the fund shall be credited to 6 the fund. 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 concerns horse racing and pari-mutuel wagering 11 under the control of the racing and gaming commission. 12 Code section 99D.7 provides that the racing and gaming 13 commission shall regulate the purse structure for race 14 meetings. The bill provides that of purse moneys dedicated 15 for thoroughbred racing, 4 percent, and not 2 percent, shall 16 be distributed to an organization representing owners of 17 thoroughbred race horses. 18 New Code section 99D.27A creates an Iowa race horse 19 aftercare organization assistance fund in the state treasury 20 under the control of the racing and gaming commission. The 21 fund shall consist of fines collected by the commission under 22 Code chapter 99D and such other moneys as may be deposited in 23 the fund. The bill provides that moneys in the fund shall be 24 distributed by the commission to organizations, exempt from 25 federal income taxation under section 501(c)(3) of the Internal 26 Revenue Code, that are dedicated to race horse aftercare. 27 The bill provides that the commission shall determine the 28 method by which moneys shall be distributed, with priority 29 given to organizations primarily involved in rehabilitation, 30 retraining, and rehoming of former race horses that raced 31 in the state of Iowa that have governing boards comprised 32 of pari-mutuel industry occupational license holders. The 33 bill limits distributions to organizations shown to have been 34 in existence for a minimum of three years. The bill holds 35 -2- LSB 5583YC (3) 89 ec/rn 2/ 3

H.F. _____ members of the commission, employees of the commission, and any 1 individual that the commission had assist in the distribution 2 determination harmless against any claim arising out of the 3 distribution of the moneys from the fund by the commission. 4 -3- LSB 5583YC (3) 89 ec/rn 3/ 3