H.F. _____ Section 1. Section 8.57I, subsection 2, Code 2025, is 1 amended to read as follows: 2 2. Moneys in the sports wagering receipts fund are not 3 subject to section 8.33 . Notwithstanding section 12C.7, 4 subsection 2 , interest or earnings on moneys in the sports 5 wagering receipts fund shall be credited to the fund. Moneys 6 in the sports wagering receipts fund may be used for cash flow 7 purposes during a fiscal year provided that any moneys so 8 allocated are returned to the fund by the end of that fiscal 9 year. 10 Sec. 2. Section 8.57I, subsections 4 and 5, Code 2025, 11 are amended by striking the subsections and inserting in lieu 12 thereof the following: 13 4. For the fiscal year beginning July 1, 2025, and each 14 fiscal year thereafter, from the moneys deposited in the 15 sports wagering receipts fund in that fiscal year, there is 16 appropriated to the following entities, the following amounts, 17 in the following order of priority: 18 a. The first one million seven hundred fifty thousand 19 dollars is appropriated to the department of health and 20 human services to be used for behavioral health prevention, 21 treatment, and recovery efforts to reduce the prevalence 22 of the use of, provide treatment for, and support recovery 23 from alcohol, tobacco, and substance use and misuse, problem 24 gambling, and other addictive behaviors. 25 b. Of the remaining amount, the next seven hundred fifty 26 thousand dollars is appropriated to the economic development 27 authority for equal distribution to regional sports authority 28 districts certified under section 15E.321. 29 c. Of the remaining amount, the next one million five 30 hundred thousand dollars is appropriated to the department of 31 revenue for deposit in the length of service award program 32 grant fund created in section 100B.52. 33 d. Of the remaining amount: 34 (1) Fifty percent is appropriated to the department of 35 -1- LSB 2984YC (7) 91 ns/js 1/ 5

H.F. _____ public safety for deposit in the public safety equipment fund 1 created in section 80.48. 2 (2) Fifty percent is appropriated to the department 3 of management for deposit in the local emergency services 4 equipment grant account created in subsection 5. 5 5. There is created a local emergency services equipment 6 grant account within the sports wagering receipts fund. The 7 account shall consist of moneys deposited in the account 8 pursuant to subsection 4 and any other moneys appropriated 9 to or deposited in the account. Moneys in the account are 10 appropriated to the department of management to issue grants 11 to local governments for the purchase of emergency services 12 equipment. To be eligible, a local government must be a 13 county that is one of the least populous eighty-eight counties 14 in the state according to the most recent federal decennial 15 census or must be a small city as defined in section 15.352. 16 The department of management shall adopt rules pursuant to 17 chapter 17A to implement and administer this subsection, 18 including but not limited to grant application requirements 19 and qualifications for emergency services equipment that may 20 be purchased with grant moneys. 21 Sec. 3. Section 15E.311, subsection 3, paragraph a, Code 22 2025, is amended to read as follows: 23 a. At the end of each fiscal year, moneys in the fund 24 shall be transferred into separate accounts within the fund 25 and designated for use by each county in which no licensee 26 authorized to conduct gambling games under chapter 99F was 27 located during that fiscal year. Moneys transferred to 28 county accounts shall be divided equally among the counties. 29 Moneys transferred into an account for a county shall be 30 transferred by the department to an eligible county recipient 31 for that county. Of the moneys transferred, an eligible county 32 recipient shall distribute seventy-five percent of the moneys 33 as grants to charitable organizations for charitable purposes 34 in that county and shall retain twenty-five percent of the 35 -2- LSB 2984YC (7) 91 ns/js 2/ 5

H.F. _____ moneys for use in establishing a permanent endowment fund 1 for the benefit of charitable organizations for charitable 2 purposes. In addition, of the moneys transferred from moneys 3 appropriated to the fund from the sports wagering receipts 4 fund created in section 8.57I and distributed, eligible 5 county recipients shall give consideration for grants, upon 6 application, to a charitable organization that operates a 7 racetrack facility that conducts automobile races in that 8 county. Of the amounts distributed, eligible county recipients 9 shall give special consideration to grants for projects that 10 include significant vertical infrastructure components designed 11 to enhance quality of life aspects within local communities. 12 In addition, as a condition of receiving a grant, the governing 13 body of a charitable organization receiving a grant shall 14 approve all expenditures of grant moneys and shall allow a 15 state audit of expenditures of all grant moneys. 16 Sec. 4. SPORTS WAGERING RECEIPTS FUND —— FY 17 2024-2025. There is appropriated from the sports wagering 18 receipts fund created in section 8.57I to the following 19 departments and agencies for the fiscal year beginning July 20 1, 2024, and ending June 30, 2025, the following amounts, or 21 so much thereof as is necessary, to be used for the purposes 22 designated: 23 1. ECONOMIC DEVELOPMENT AUTHORITY 24 a. For deposit in the community attraction and tourism fund 25 created in section 15F.204: 26 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 10,000,000 27 b. For deposit in the destination Iowa fund created in 28 section 15.281: 29 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 10,000,000 30 2. DEPARTMENT OF HOMELAND SECURITY AND EMERGENCY MANAGEMENT 31 For deposit in the levee improvement fund created in section 32 8.57D: 33 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 10,000,000 34 Sec. 5. EFFECTIVE DATE. The following, being deemed of 35 -3- LSB 2984YC (7) 91 ns/js 3/ 5

H.F. _____ immediate importance, takes effect upon enactment: 1 The section of this Act appropriating moneys from the sports 2 wagering receipts fund for the fiscal year beginning July 1, 3 2024. 4 Sec. 6. CONTINGENT EFFECTIVE DATE. The following takes 5 effect on the effective date of 2025 Iowa Acts, House File 1002 6 or Senate File 627, or successor legislation, if enacted: 7 The portion of the section of this Act enacting section 8 8.57I, subsection 4, paragraph “c”. 9 EXPLANATION 10 The inclusion of this explanation does not constitute agreement with 11 the explanation’s substance by the members of the general assembly. 12 Under current law, the sports wagering receipts fund (Code 13 section 8.57I) receives moneys from the internet fantasy sports 14 contest tax (Code section 99E.6) and the sports wagering 15 net receipts tax (Code section 99F.11(5)). The general 16 assembly has annually appropriated moneys from the fund to the 17 department of health and human services (HHS) for behavioral 18 health prevention, treatment, and recovery efforts associated 19 with alcohol, tobacco, and substance use and misuse, problem 20 gambling, and other addictive behaviors. 21 For FY 2025-2026, and each fiscal year thereafter, this bill 22 appropriates moneys deposited in the sports wagering receipts 23 fund in that fiscal year to HHS for such behavioral health 24 prevention, treatment, and recovery efforts; to the economic 25 development authority for equal distribution to regional 26 sports authority districts; to the department of revenue for 27 deposit in the length of service award program grant fund, if 28 enacted by the general assembly; to the department of public 29 safety for deposit in the public safety equipment fund; and to 30 the department of management (DOM) for deposit in the local 31 emergency services equipment grant account created in the 32 bill. From the account, DOM may issue grants to eligible local 33 governments for the purchase of emergency services equipment. 34 The bill strikes the authorization to use moneys in 35 -4- LSB 2984YC (7) 91 ns/js 4/ 5

H.F. _____ the sports wagering receipts fund for cash flow purposes, 1 reporting requirements relating to the use of moneys from 2 the sports wagering receipts fund for projects, and required 3 considerations for grants from the county endowment fund using 4 moneys from the sports wagering receipts fund (moneys are not 5 transferred from the sports wagering receipts fund to the 6 county endowment fund under current law or the bill). 7 For FY 2024-2025, the bill appropriates moneys from the 8 sports wagering receipts fund to the community attraction and 9 tourism fund, destination Iowa fund, and levee improvement 10 fund. This provision takes effect upon enactment. 11 -5- LSB 2984YC (7) 91 ns/js 5/ 5