HSB 330 (LSB 2984YC (7) 91)

HOUSE FILE _____ 

BY  (PROPOSED COMMITTEE ON APPROPRIATIONS BILL BY CHAIRPERSON MOHR)

A BILL FOR

An Act relating to sports wagering receipts, making appropriations, and including effective date provisions.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  Section 8.57I, subsection 2, Code 2025, is amended to read as follows:
   2.  Moneys in the sports wagering receipts fund are not subject to section 8.33. Notwithstanding section 12C.7, subsection 2, interest or earnings on moneys in the sports wagering receipts fund shall be credited to the fund. Moneys in the sports wagering receipts fund may be used for cash flow purposes during a fiscal year provided that any moneys so allocated are returned to the fund by the end of that fiscal year.
    Sec. 2.  Section 8.57I, subsections 4 and 5, Code 2025, are amended by striking the subsections and inserting in lieu thereof the following:
   4.  For the fiscal year beginning July 1, 2025, and each fiscal year thereafter, from the moneys deposited in the sports wagering receipts fund in that fiscal year, there is appropriated to the following entities, the following amounts, in the following order of priority:
   a.  The first one million seven hundred fifty thousand dollars is appropriated to the department of health and human services to be used for behavioral health prevention, treatment, and recovery efforts to reduce the prevalence of the use of, provide treatment for, and support recovery from alcohol, tobacco, and substance use and misuse, problem gambling, and other addictive behaviors.
   b.  Of the remaining amount, the next seven hundred fifty thousand dollars is appropriated to the economic development authority for equal distribution to regional sports authority districts certified under section 15E.321.
   c.  Of the remaining amount, the next one million five hundred thousand dollars is appropriated to the department of revenue for deposit in the length of service award program grant fund created in section 100B.52.
   d.  Of the remaining amount:
   (1)  Fifty percent is appropriated to the department of public safety for deposit in the public safety equipment fund created in section 80.48.
   (2)  Fifty percent is appropriated to the department of management for deposit in the local emergency services equipment grant account created in subsection 5.
   5.  There is created a local emergency services equipment grant account within the sports wagering receipts fund. The account shall consist of moneys deposited in the account pursuant to subsection 4 and any other moneys appropriated to or deposited in the account. Moneys in the account are appropriated to the department of management to issue grants to local governments for the purchase of emergency services equipment. To be eligible, a local government must be a county that is one of the least populous eighty-eight counties in the state according to the most recent federal decennial census or must be a small city as defined in section 15.352. The department of management shall adopt rules pursuant to chapter 17A to implement and administer this subsection, including but not limited to grant application requirements and qualifications for emergency services equipment that may be purchased with grant moneys.
    Sec. 3.  Section 15E.311, subsection 3, paragraph a, Code 2025, 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 8.57I 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. 4.  SPORTS WAGERING RECEIPTS FUND —— FY 2024-2025.  There is appropriated from the sports wagering receipts fund created in section 8.57I to the following departments and agencies for the fiscal year beginning July 1, 2024, and ending June 30, 2025, the following amounts, or so much thereof as is necessary, to be used for the purposes designated:
   1.  ECONOMIC DEVELOPMENT AUTHORITY
   a.  For deposit in the community attraction and tourism fund created in section 15F.204:
   ...................................................................... $ 10,000,000

   b.  For deposit in the destination Iowa fund created in section 15.281:
   ...................................................................... $ 10,000,000

   2.  DEPARTMENT OF HOMELAND SECURITY AND EMERGENCY MANAGEMENT
   For deposit in the levee improvement fund created in section 8.57D:
   ...................................................................... $ 10,000,000
    Sec. 5.  EFFECTIVE DATE.  The following, being deemed of immediate importance, takes effect upon enactment:
   The section of this Act appropriating moneys from the sports wagering receipts fund for the fiscal year beginning July 1, 2024.
    Sec. 6.  CONTINGENT EFFECTIVE DATE.  The following takes effect on the effective date of 2025 Iowa Acts, House File 1002 or Senate File 627, or successor legislation, if enacted:
   The portion of the section of this Act enacting section 8.57I, subsection 4, paragraph “c”.
EXPLANATION
The inclusion of this explanation does not constitute agreement with
the explanation’s substance by the members of the general assembly.
   Under current law, the sports wagering receipts fund (Code section 8.57I) receives moneys from the internet fantasy sports contest tax (Code section 99E.6) and the sports wagering net receipts tax (Code section 99F.11(5)). The general assembly has annually appropriated moneys from the fund to the department of health and human services (HHS) for behavioral health prevention, treatment, and recovery efforts associated with alcohol, tobacco, and substance use and misuse, problem gambling, and other addictive behaviors.
   For FY 2025-2026, and each fiscal year thereafter, this bill appropriates moneys deposited in the sports wagering receipts fund in that fiscal year to HHS for such behavioral health prevention, treatment, and recovery efforts; to the economic development authority for equal distribution to regional sports authority districts; to the department of revenue for deposit in the length of service award program grant fund, if enacted by the general assembly; to the department of public safety for deposit in the public safety equipment fund; and to the department of management (DOM) for deposit in the local emergency services equipment grant account created in the bill. From the account, DOM may issue grants to eligible local governments for the purchase of emergency services equipment.
   The bill strikes the authorization to use moneys in the sports wagering receipts fund for cash flow purposes, reporting requirements relating to the use of moneys from the sports wagering receipts fund for projects, and required considerations for grants from the county endowment fund using moneys from the sports wagering receipts fund (moneys are not transferred from the sports wagering receipts fund to the county endowment fund under current law or the bill).
   For FY 2024-2025, the bill appropriates moneys from the sports wagering receipts fund to the community attraction and tourism fund, destination Iowa fund, and levee improvement fund. This provision takes effect upon enactment.