Senate File 613 - Introduced SENATE FILE 613 BY COMMITTEE ON WAYS AND MEANS (SUCCESSOR TO SSB 1157) A BILL FOR An Act concerning the regulation and support of leisure 1 activities, including by providing for gambling enforcement, 2 license fees, tax rates, and the use of associated revenue, 3 establishing the Iowa major events and tourism program 4 and fund, modifying the sports tourism marketing and 5 infrastructure program, making appropriations, and including 6 effective date provisions. 7 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 8 TLSB 1774SV (3) 91 ll/ns

S.F. 613 DIVISION I 1 GAMBLING REGULATION 2 Section 1. Section 8.57I, subsection 3, Code 2025, is 3 amended to read as follows: 4 3. a. Moneys in the sports wagering receipts fund in a 5 fiscal year shall be used as directed by the general assembly. 6 b. For the fiscal year beginning July 1, 2026, and each 7 fiscal year thereafter, there is appropriated from the sports 8 wagering receipts fund to the public safety equipment fund 9 created in section 80.48 eight million dollars. Subsections 4 10 and 5 do not apply to moneys appropriated under this paragraph. 11 Sec. 2. Section 80.43, subsection 1, Code 2025, is amended 12 to read as follows: 13 1. A gaming enforcement revolving fund is created in the 14 state treasury under the control of the department. The fund 15 shall consist of fees collected and deposited into the fund 16 paid by licensees pursuant to section 99D.14, subsection 2 , 17 paragraph “b” , fees and costs paid by applicants pursuant 18 to section 99E.4, subsection 4 , and fees paid by licensees 19 pursuant to section 99F.10, subsection 4 , paragraph “b” any 20 other moneys appropriated to, transferred to, or deposited in 21 the fund . All costs for agents and officers plus any direct 22 support costs for such agents and officers of the division of 23 criminal investigation’s racetrack, excursion boat, gambling 24 structure, and internet fantasy sports contests , as defined in 25 section 99E.1 , enforcement activities shall be paid from the 26 fund as provided in appropriations made for this purpose by the 27 general assembly. 28 Sec. 3. Section 99D.14, subsection 2, paragraph a, 29 subparagraph (1), Code 2025, is amended to read as follows: 30 (1) A licensee shall pay a regulatory fee to be charged as 31 provided in this section . In determining the regulatory fee 32 to be charged as provided under this section , the commission 33 shall use the amount appropriated to the commission plus 34 the cost of salaries for no more than three special agents 35 -1- LSB 1774SV (3) 91 ll/ns 1/ 18

S.F. 613 assigned pursuant to the provisions of section 80.25A , for 1 each racetrack that has not been issued a table games license 2 under chapter 99F or no more than three special agents 3 assigned pursuant to the provisions of section 80.25A , for each 4 racetrack that has been issued a table games license under 5 chapter 99F , plus any direct and indirect support costs for 6 the division of criminal investigation’s duties pursuant to 7 chapters 99D , 99E , and 99F , and section 80.25A , as the basis 8 for determining the amount of revenue to be raised from the 9 regulatory fee. 10 Sec. 4. Section 99D.14, subsection 2, paragraphs b, e, and 11 f, Code 2025, are amended by striking the paragraphs. 12 Sec. 5. Section 99D.14, subsection 2, paragraph d, Code 13 2025, is amended to read as follows: 14 d. The aggregate amount of the regulatory fee assessed under 15 paragraph “a” during each fiscal year shall be reduced by an 16 amount equal to the unexpended moneys from the previous fiscal 17 year that were deposited into the gaming regulatory revolving 18 funds fund established in sections 80.43 and section 99F.20 19 during that previous fiscal year. 20 Sec. 6. Section 99D.15, subsection 4, Code 2025, is amended 21 to read as follows: 22 4. A tax is imposed on the gross sum wagered by the 23 pari-mutuel method on horse races and dog races which are 24 simultaneously telecast, in lieu of the taxes imposed pursuant 25 to subsection 1 or 3 . The rate of tax is determined as follows: 26 a. If wagering on simultaneously telecast horse races and 27 dog races is not conducted by a licensee under section 99D.9D , 28 a tax of two percent is imposed on the gross sum wagered by 29 the pari-mutuel method on horse races and dog races which are 30 simultaneously telecast. The tax revenue from simulcast horse 31 races under this paragraph shall be distributed as provided in 32 subsection 1 deposited in the Iowa horse racing fund created 33 in section 99D.27B and the tax revenue from simulcast dog 34 races under this paragraph shall be distributed as provided in 35 -2- LSB 1774SV (3) 91 ll/ns 2/ 18

S.F. 613 subsection 3 . 1 b. If wagering on simultaneously telecast horse races and 2 dog races is conducted by a licensee under section 99D.9D , 3 a tax of two percent is imposed on the gross sum wagered by 4 the pari-mutuel method on horse races and dog races which 5 are simultaneously telecast in excess of twenty-five million 6 dollars in a calendar year. Of the tax revenue collected 7 from simulcast horse races under this paragraph, one-half of 8 one percent of the gross sum wagered shall be remitted to 9 the treasurer of the county in which a horse racetrack is 10 located in this state and licensed under this chapter . The 11 tax revenue from simulcast horse races under this paragraph 12 shall be deposited in the Iowa horse racing fund created in 13 section 99D.27B. The remaining amount of tax revenue shall be 14 deposited with the commission. 15 Sec. 7. Section 99D.17, Code 2025, is amended to read as 16 follows: 17 99D.17 Use of funds moneys . 18 Funds Unless otherwise provided by section 99D.15 or another 19 provision of law, moneys received pursuant to sections 99D.14 20 and 99D.15 shall be deposited as provided in section 8.57, 21 subsection 3 . These funds moneys shall first be used to the 22 extent appropriated by the general assembly. The commission 23 is subject to the budget requirements of chapter 8 and the 24 applicable auditing requirements and procedures of chapter 11 . 25 Sec. 8. NEW SECTION . 99D.27B Iowa horse racing fund. 26 1. An Iowa horse racing fund is created in the state 27 treasury under the control of the commission. 28 2. The fund shall consist of tax revenue collected and 29 deposited in the fund pursuant to section 99D.15, subsection 30 4, and such other moneys appropriated to, transferred to, or 31 deposited in the fund. 32 3. a. Moneys in the fund are appropriated to the commission 33 for distribution in a manner and in an amount as determined by 34 the commission to individual entities or a recognized compact 35 -3- LSB 1774SV (3) 91 ll/ns 3/ 18

S.F. 613 of entities subject to the regulation of the horse racing 1 industry in accordance with the federal Horseracing Integrity 2 and Safety Act of 2020, 15 U.S.C. ch. 57A. 3 b. In the event that the federal Horseracing Integrity 4 and Safety Act of 2020, 15 U.S.C. ch. 57A, is repealed, 5 moneys in the fund shall be transferred to the rebuild Iowa 6 infrastructure fund created in section 8.57. 7 4. Members of the commission and those acting on behalf of 8 the commission assisting in the distribution of the moneys in 9 the fund shall be held harmless against any claim of liability 10 made by an individual or entity arising out of the distribution 11 of the moneys from the fund by the commission. 12 5. Section 8.33 does not apply to moneys in the fund. 13 Notwithstanding section 12C.7, subsection 2, interest or 14 earnings on moneys deposited in the fund shall be credited to 15 the fund. 16 Sec. 9. Section 99F.5, subsection 2, Code 2025, is amended 17 to read as follows: 18 2. The annual license fee to operate an excursion gambling 19 boat shall be based on the passenger-carrying capacity 20 including crew, for which the excursion gambling boat is 21 registered. For a gambling structure, the annual license fee 22 shall be based on the capacity of the gambling structure. The 23 annual fee shall be five ten dollars per person capacity. 24 Sec. 10. Section 99F.10, subsection 4, paragraph a, Code 25 2025, is amended to read as follows: 26 a. In determining the license fees and state regulatory 27 fees to be charged as provided under section 99F.4 and this 28 section , the commission shall use as the basis for determining 29 the amount of revenue to be raised from the license fees and 30 regulatory fees the amount appropriated to the commission plus 31 the cost of salaries for no more than three special agents 32 for each excursion gambling boat or gambling structure as 33 assigned pursuant to the provisions of section 80.25A , plus any 34 direct and indirect support costs for the division of criminal 35 -4- LSB 1774SV (3) 91 ll/ns 4/ 18

S.F. 613 investigation’s duties pursuant to chapters 99D , 99E , and 99F , 1 and section 80.25A . 2 Sec. 11. Section 99F.10, subsection 4, paragraphs b, d, f, 3 and g, Code 2025, are amended by striking the paragraphs. 4 Sec. 12. Section 99F.10, subsection 4, paragraph e, Code 5 2025, is amended to read as follows: 6 e. The aggregate amount of the regulatory fee assessed under 7 paragraph “a” during each fiscal year shall be reduced by an 8 amount equal to the unexpended moneys from the previous fiscal 9 year that were deposited into the gaming regulatory revolving 10 funds fund established in section 80.43 or 99F.20 during that 11 previous fiscal year. 12 Sec. 13. Section 99F.10, subsection 5, Code 2025, is amended 13 by striking the subsection. 14 Sec. 14. Section 99F.11, subsection 1, Code 2025, is amended 15 to read as follows: 16 1. A tax is imposed on the adjusted gross receipts received 17 each fiscal year from gambling games authorized under this 18 chapter at the rate of five percent on the first one million 19 dollars of adjusted gross receipts and at the rate of ten 20 percent on the next two million dollars of adjusted gross 21 receipts. following rates: 22 a. If the licensee is an excursion gambling boat or gambling 23 structure, twenty-two percent. 24 b. If the licensee is a racetrack enclosure conducting 25 gambling games, twenty-four and one hundred twenty thousandths 26 percent, regardless of whether the licensee has been issued a 27 table games license. 28 Sec. 15. Section 99F.11, subsection 2, Code 2025, is amended 29 by striking the subsection. 30 Sec. 16. Section 99F.11, subsection 3, paragraph a, Code 31 2025, is amended to read as follows: 32 a. Notwithstanding any provision of this section to the 33 contrary, the tax rate imposed on a licensee each fiscal 34 year on any amount of promotional play receipts on gambling 35 -5- LSB 1774SV (3) 91 ll/ns 5/ 18

S.F. 613 games included as adjusted gross receipts shall be determined 1 by multiplying the adjusted percentage by the wagering tax 2 applicable to the licensee pursuant to subsection 2 1 . 3 Sec. 17. Section 99F.11, subsection 4, Code 2025, is amended 4 by adding the following new paragraph: 5 NEW PARAGRAPH . 0e. For the fiscal year beginning July 1, 6 2026, and each fiscal year thereafter, the remaining amount of 7 the adjusted gross receipts tax shall be credited to the gaming 8 enforcement revolving fund created in section 80.43 until the 9 amount credited to the fund under this paragraph equals the 10 amount appropriated from the fund by the general assembly 11 for the fiscal year to the department of public safety for 12 direct support costs for agents and officers of the division 13 of criminal investigation’s excursion gambling boat, gambling 14 structure, and racetrack enclosure enforcement activities, 15 including salaries, support, maintenance, miscellaneous 16 purposes, and full-time equivalent positions. 17 Sec. 18. Section 99F.11, subsection 5, paragraph a, Code 18 2025, is amended to read as follows: 19 a. A tax is imposed on the sports wagering net receipts 20 received each fiscal year by a licensed operator from sports 21 wagering authorized under this chapter at the rate of six and 22 three-quarters nine percent. 23 Sec. 19. EFFECTIVE DATE. This division of this Act takes 24 effect January 1, 2026. 25 DIVISION II 26 IOWA MAJOR EVENTS AND TOURISM PROGRAM AND FUND 27 Sec. 20. NEW SECTION . 15G.1 Definitions. 28 As used in this chapter, unless the context otherwise 29 requires: 30 1. “Authority” means the economic development authority. 31 2. “Board” means the same as defined in section 15.102. 32 3. “Entity” means an Iowa nonprofit organization established 33 to promote economic development and tourism in an area. 34 4. “Event” means a tourism-oriented athletic contest, 35 -6- LSB 1774SV (3) 91 ll/ns 6/ 18

S.F. 613 convention, music festival, or art festival. 1 5. “Financial assistance” means assistance provided only 2 from the moneys, rights, and assets legally available to the 3 authority and includes but is not limited to assistance in the 4 form of grants. 5 6. “Fund” means the Iowa major events and tourism fund 6 established in section 15G.4. 7 7. “Program” means the Iowa major events and tourism program 8 established in section 15G.2. 9 Sec. 21. NEW SECTION . 15G.2 Iowa major events and tourism 10 program —— purpose. 11 1. The authority shall establish and administer the 12 Iowa major events and tourism program to provide financial 13 assistance to eligible entities that support events in this 14 state, or support events involving a geographic region that 15 includes this state, and the event generates large attendance, 16 significant publicity, and has a measurable economic impact on 17 this state. 18 2. The program shall be administered for the purpose of 19 awarding financial assistance to an eligible entity for any of 20 the following purposes: 21 a. To pay for or reimburse the costs incurred by the entity 22 to apply or bid for selection as the site for the event. 23 b. To pay for or reimburse the costs incurred by the entity 24 to plan or to conduct the event, including any fees charged by 25 a site selection organization as a prerequisite to hosting the 26 event, including but not limited to hosting fees, sanctioning 27 fees, participation fees, operational fees, or bid fees. 28 Sec. 22. NEW SECTION . 15G.3 Program —— application, review, 29 eligibility, and funding. 30 1. An application for financial assistance under the 31 program shall be submitted to the authority. For each 32 application that meets the eligibility criteria under 33 subsection 2, the authority shall conduct a staff evaluation 34 of the application and forward the application and staff 35 -7- LSB 1774SV (3) 91 ll/ns 7/ 18

S.F. 613 evaluation to the board. 1 2. a. The authority shall establish eligibility criteria 2 for the program by rule. The eligibility criteria must include 3 all of the following: 4 (1) The entity must currently be involved in the bidding and 5 selection process for the event for which the entity submits 6 an application. 7 (2) The entity’s application under subsection 1 must 8 include an economic analysis of the event that includes but is 9 not limited to all of the following: 10 (a) Projected hotel and motel room occupancies during the 11 event. 12 (b) Projected number of event attendees from this state, 13 other states, and other countries. 14 b. Notwithstanding paragraph “a” , an entity shall be deemed 15 eligible for the program if any of the following apply: 16 (1) After a highly competitive bidding and selection 17 process involving potential sites not located in this state, a 18 location in Iowa has been selected for the entity’s event. 19 (2) This state serves as the sole site for the entity’s 20 event. 21 (3) The sole site for the entity’s event is a geographic 22 region that includes this state and one or more contiguous 23 states. 24 3. When evaluating an application, the authority shall 25 consider, at a minimum, all of the following: 26 a. The potential impact of the event on the local, regional, 27 and state economies. 28 b. The event’s potential to attract visitors from this 29 state, other states, and other countries. 30 c. The amount of positive advertising or media coverage the 31 event may generate. 32 d. The quality, size, and scope of the event. 33 e. The ratio of public-to-private investment required for 34 the event. 35 -8- LSB 1774SV (3) 91 ll/ns 8/ 18

S.F. 613 4. a. (1) Upon review of the staff evaluation, the board 1 shall make the final funding decision on each application 2 and may approve, deny, defer, or modify each application, in 3 the board’s discretion, to fund as many events as possible 4 with the moneys available. The board and the authority may 5 negotiate with an eligible applicant regarding the details of 6 the applicant’s proposed event and the amount and terms of 7 any financial assistance. In making final funding decisions 8 pursuant to this subsection, the board and the authority shall 9 be exempt from chapter 17A. 10 (2) An application and staff evaluation forwarded to 11 the board under subsection 1 shall remain eligible for 12 consideration by the board under subparagraph (1) for up to two 13 years from the date of receipt of the application by the board. 14 b. In order to be awarded financial assistance under the 15 program, an applicant must demonstrate the ability to provide 16 matching moneys for the event that equal at least fifty percent 17 of the award of financial assistance. 18 Sec. 23. NEW SECTION . 15G.4 Iowa major events and tourism 19 fund. 20 1. a. The authority shall establish an Iowa major events 21 and tourism fund pursuant to section 15.106A, subsection 1, 22 paragraph “o” , for purposes of providing financial assistance 23 as described in this chapter. The fund may be administered as 24 a revolving fund and shall consist of any moneys transferred to 25 the fund and any moneys appropriated by the general assembly 26 for purposes of this chapter. 27 b. (1) Notwithstanding section 8.33, moneys in the fund 28 that remain unencumbered or unobligated at the close of the 29 fiscal year shall not revert but shall remain available for 30 expenditure for the purposes designated until the close of the 31 fiscal year following the succeeding fiscal year. 32 (2) Moneys encumbered or obligated pursuant to financial 33 assistance awarded under section 15G.3, subsection 4, shall be 34 disbursed by the authority within five calendar years from the 35 -9- LSB 1774SV (3) 91 ll/ns 9/ 18

S.F. 613 date of encumbrance or obligation, or the moneys shall revert 1 to the state treasury and shall be credited to the funds from 2 which the appropriations were made as provided in section 8.33. 3 c. Notwithstanding section 12C.7, subsection 2, interest or 4 earnings on moneys deposited in the fund shall be credited to 5 the fund. 6 2. a. Moneys in the fund are appropriated to the authority 7 for purposes of providing financial assistance under the 8 program. The authority shall not use more than five percent 9 of the moneys in the fund at the beginning of each fiscal year 10 for purposes of administrative costs, technical assistance, and 11 other program support. 12 b. An entity that is awarded financial assistance pursuant 13 to this chapter is not eligible to receive financial assistance 14 under the sports tourism infrastructure program pursuant to 15 chapter 15F, subchapter IV. 16 Sec. 24. APPROPRIATION —— SPORTS WAGERING RECEIPTS 17 FUND. There is appropriated from the sports wagering receipts 18 fund created in section 8.57I to the economic development 19 authority for the fiscal year beginning July 1, 2025, and 20 ending June 30, 2026, the following amount, or so much thereof 21 as is necessary, to be used for the purposes designated: 22 For deposit in the Iowa major events and tourism fund 23 established in section 15G.4, as enacted by this division of 24 this Act: 25 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 15,000,000 26 DIVISION III 27 SPORTS TOURISM MARKETING PROGRAM AND FUND —— REPEAL 28 Sec. 25. Section 15E.321, subsection 4, Code 2025, is 29 amended by striking the subsection. 30 Sec. 26. Section 15F.401, subsection 1, paragraph a, Code 31 2025, is amended to read as follows: 32 a. The authority shall establish, and, at the direction 33 of the board, shall administer a sports tourism marketing and 34 infrastructure program to provide financial assistance for 35 -10- LSB 1774SV (3) 91 ll/ns 10/ 18

S.F. 613 projects that promote sporting events or for infrastructure 1 projects supporting sporting events for organizations of 2 accredited colleges and universities, professional sporting 3 events, and other sporting events in the state. 4 Sec. 27. Section 15F.401, subsection 1, paragraph b, 5 subparagraph (1), Code 2025, is amended by striking the 6 subparagraph. 7 Sec. 28. Section 15F.401, subsection 1, paragraph b, Code 8 2025, is amended by adding the following new subparagraph: 9 NEW SUBPARAGRAPH . (03) “Fund” means the sports tourism 10 infrastructure program fund established in section 15F.404. 11 Sec. 29. Section 15F.401, subsection 2, paragraphs a and d, 12 Code 2025, are amended to read as follows: 13 a. (1) A city or county in the state or a public entity, 14 including a convention and visitors bureau or a district, may 15 apply to the authority for financial assistance from the sports 16 tourism marketing program fund created in section 15F.403 for 17 a project that actively and directly promotes sporting events 18 for accredited colleges and universities, professional sporting 19 events, and other sporting events in the area served by the 20 city, county, or public entity. 21 (2) A city or county in the state or a public entity that 22 is a convention and visitors bureau or a district nonprofit 23 organization may apply to the authority be eligible for 24 financial assistance from the sports tourism infrastructure 25 program fund created in section 15F.404 for an infrastructure 26 project that actively and directly supports sporting events for 27 accredited colleges and universities, professional sporting 28 events, and other sporting events in the area served by the 29 city, county, or public entity. However, financial assistance 30 shall not be provided to an applicant from the sports tourism 31 infrastructure program fund created in section 15F.404 for 32 infrastructure projects located in a reinvestment district 33 as defined and approved by the authority pursuant to section 34 15J.4 or to applicants that have received a rebate of sales tax 35 -11- LSB 1774SV (3) 91 ll/ns 11/ 18

S.F. 613 imposed and collected by retailers pursuant to section 423.4, 1 subsection 5 . 2 d. A convention and visitors bureau may apply to the 3 authority for financial assistance pursuant to this section and 4 a district may apply to the authority for district financial 5 assistance, but a convention and visitors bureau shall not in 6 the same year receive financial assistance under the program 7 created in this section and financial assistance as part of a 8 district. 9 Sec. 30. Section 15F.401, subsection 4, paragraph b, Code 10 2025, is amended to read as follows: 11 b. An applicant under the program shall not receive 12 financial assistance from the sports tourism marketing 13 program fund created in section 15F.403 or the sports tourism 14 infrastructure program fund created in section 15F.404 in 15 an amount exceeding fifty percent of the total cost of the 16 project. 17 Sec. 31. Section 15F.401, subsection 5, Code 2025, is 18 amended to read as follows: 19 5. The board shall make final funding decisions on 20 each application and may approve, deny, defer, or modify 21 applications for financial assistance under the sports tourism 22 marketing and infrastructure program, in its discretion, in 23 order to fund as many projects with the moneys available as 24 possible. The board and the authority may negotiate with 25 applicants regarding the details of projects and the amount and 26 terms of any award. The total amount of financial assistance 27 provided to an applicant from the sports tourism marketing 28 program fund created in section 15F.403 in any one fiscal year 29 shall not exceed five hundred thousand dollars. In making 30 final funding decisions pursuant to this subsection , the board 31 and the authority are exempt from chapter 17A . 32 Sec. 32. Section 15F.401, subsection 6, Code 2025, is 33 amended by striking the subsection and inserting in lieu 34 thereof the following: 35 -12- LSB 1774SV (3) 91 ll/ns 12/ 18

S.F. 613 6. A city, county, or public entity shall not use financial 1 assistance received under the program from the fund as 2 reimbursement for completed projects. 3 Sec. 33. Section 15F.402, subsections 1 and 2, Code 2025, 4 are amended to read as follows: 5 1. Applications for assistance under the sports tourism 6 marketing and infrastructure program established in section 7 15F.401 shall be submitted to the authority. For those 8 applications that meet the eligibility criteria, the authority 9 shall forward the applications to the board and provide a staff 10 review analysis and evaluation to the sports tourism program 11 review committee referred to in subsection 2 and to the board. 12 2. A review committee composed of five members of the 13 board shall review sports tourism marketing and infrastructure 14 program applications forwarded to the board and make 15 recommendations regarding the applications to the authority. 16 Sec. 34. Section 15F.404, subsection 2, paragraph a, Code 17 2025, is amended to read as follows: 18 a. Moneys in the fund are appropriated to the authority for 19 purposes of providing financial assistance to cities, counties, 20 and eligible public entities under the sports tourism marketing 21 and infrastructure program established and administered 22 pursuant to this subchapter . 23 Sec. 35. REPEAL. Section 15F.403, Code 2025, is repealed. 24 Sec. 36. TRANSFER OF MONEYS. On the effective date of 25 this division of this Act, any moneys remaining in the sports 26 tourism marketing program fund established in section 15F.403, 27 Code 2025, are transferred to the Iowa major events and tourism 28 fund established in section 15G.4, as enacted by this Act. 29 EXPLANATION 30 The inclusion of this explanation does not constitute agreement with 31 the explanation’s substance by the members of the general assembly. 32 This bill concerns the regulation and support of leisure 33 activities. 34 GAMBLING REGULATION. Under current law, the tax rate 35 -13- LSB 1774SV (3) 91 ll/ns 13/ 18

S.F. 613 imposed on sports wagering net receipts of a licensed 1 operator is 6.75 percent, which is deposited in the sports 2 wagering receipts fund. The bill increases the rate to 9 3 percent. For FY 2026-2027 and each fiscal year thereafter, 4 the bill appropriates $8 million from the sports wagering 5 receipts fund to the public safety equipment fund, which is 6 used by the department of public safety (DPS) for purchase, 7 maintenance, and replacement of equipment. The bill exempts 8 the appropriated moneys from the sports wagering receipts 9 fund reporting requirements under current law, as current law 10 already requires DPS to report on the use of moneys in the 11 public safety equipment fund. 12 Under current law, to determine the license fees and 13 regulatory fees to be charged in accordance with Code sections 14 99D.14 and 99F.10, the state racing and gaming commission 15 (commission) must use the amount appropriated to the commission 16 plus the gaming enforcement costs of DPS’s division of criminal 17 investigation. The portion of the fees associated with such 18 enforcement costs is deposited in the gaming enforcement 19 revolving fund to be annually appropriated by the general 20 assembly to DPS for gaming enforcement. The bill strikes 21 the portion of the fees that is based on DPS enforcement 22 costs, and the associated deposit in the gaming enforcement 23 revolving fund. The bill does not amend the fees associated 24 with DPS costs for fingerprinting, national criminal history 25 check requirements, and background investigations for licenses 26 to conduct internet fantasy sports contests (Code section 27 99E.4(4)). 28 Current law provides that the tax imposed on pari-mutuel 29 wagers on simulcast horse races is split in specified 30 percentages between the city and county in which the racetrack 31 is located and the commission for deposit as described in Code 32 section 8.57(3) (rebuild Iowa infrastructure fund). The bill 33 instead provides that such revenue is to be deposited in the 34 Iowa horse racing fund, created in the bill, to be used by the 35 -14- LSB 1774SV (3) 91 ll/ns 14/ 18

S.F. 613 commission for distribution to entities subject to federal 1 horse racing regulations. 2 Under current law, the annual license fee to operate an 3 excursion gambling boat or gambling structure is $5 per person 4 capacity. The bill increases the rate to $10 per person 5 capacity. 6 Under current law, a tax is imposed on the adjusted gross 7 receipts received each fiscal year from excursion gambling 8 boats, gambling structures, and racetrack enclosures conducting 9 gambling games. The rate is 5 percent on the first $1 million 10 and 10 percent on the next $2 million. Over $3 million, 11 the tax rate is 22 percent for an excursion gambling boat 12 or gambling structure, and between 22 and 24 percent for a 13 racetrack enclosure based on the existence of an excursion 14 gambling boat or gambling structure in the same county, whether 15 the racetrack enclosure has been issued a table games license, 16 and whether adjusted gross receipts reached $100 million. The 17 bill eliminates this tax rate structure and imposes a tax of 22 18 percent for an excursion gambling boat or gambling structure, 19 and 24.120 percent for a racetrack enclosure, on all adjusted 20 gross receipts each fiscal year. 21 For FY 2026-2027 and each fiscal year thereafter, prior 22 to the remaining amount of the adjusted gross receipts tax 23 being credited to the rebuild Iowa infrastructure fund as 24 provided under current law, an amount is credited to the gaming 25 enforcement revolving fund up to the amount appropriated by the 26 general assembly to DPS for gaming enforcement from that fund 27 for that fiscal year. 28 This division of the bill takes effect January 1, 2026. 29 IOWA MAJOR EVENTS AND TOURISM PROGRAM AND FUND. The bill 30 requires the economic development authority (authority) to 31 establish and administer an Iowa major events and tourism 32 program (program), including an Iowa major events and tourism 33 fund (fund). The purpose of the program is to provide 34 financial assistance, including grants, to an entity supporting 35 -15- LSB 1774SV (3) 91 ll/ns 15/ 18

S.F. 613 an event in this state, or an event involving a geographic 1 region that includes this state, if the event generates large 2 attendance, significant publicity, and measurable economic 3 impact on this state. The financial assistance includes 4 payment or reimbursement of costs incurred by the entity to 5 apply or bid for selection as the site event, to plan or 6 conduct the event, and to pay or reimburse any related fees 7 including hosting fees, sanctioning fees, participation fees, 8 operational fees, and bid fees. 9 The bill defines “entity” to mean an Iowa nonprofit 10 organization established to promote economic development 11 and tourism in an area. The bill defines “event” to mean a 12 tourism-oriented athletic contest, convention, music festival, 13 or art festival. 14 The bill requires the authority to establish eligibility 15 criteria for the program by rule. The eligibility criteria 16 must include the requirement that the entity be currently 17 involved in the bidding and selection process for the event the 18 application is based upon; and that the entity must submit an 19 economic analysis of the event with the entity’s application 20 that includes but is not limited to projected hotel and 21 motel room occupancies, and the projected number of attendees 22 the event attracts from this state, other states, and other 23 countries. 24 An application is deemed to meet all eligibility criteria 25 if the state is selected as the event site after a highly 26 competitive bidding and selection process involving sites in 27 other states, if this state serves as the sole site for the 28 event, or if the sole site for the event involves a geographic 29 region that includes this state and one or more contiguous 30 states. 31 If an entity’s application meets the eligibility criteria 32 established in the bill, the staff of the authority must 33 perform an evaluation of the application and forward the 34 application and evaluation to the economic development 35 -16- LSB 1774SV (3) 91 ll/ns 16/ 18

S.F. 613 authority board (board). In evaluating an application, the 1 bill requires the authority to consider the impact on the 2 economy, the potential to attract visitors, advertising and 3 media coverage, public-to-private investment ratios, and the 4 quality, size, and scope of the event. 5 Upon review of the staff evaluation, the board may approve, 6 deny, defer, or modify the application. The bill allows the 7 board and the authority to negotiate with the entity regarding 8 the details of the event and the amount and terms of the 9 financial assistance. 10 An application remains eligible for consideration by the 11 board for up to two years from the date of receipt of the 12 application by the board. 13 The bill requires applicants to demonstrate the ability to 14 provide matching funds equal to at least 50 percent of the 15 financial assistance awarded to the applicant. 16 The bill requires the authority to establish a fund for the 17 purposes of providing financial assistance under the program. 18 The authority may administer the fund as a revolving fund. 19 Moneys in the fund that are encumbered or obligated pursuant 20 to financial assistance awarded under the program shall be 21 disbursed by the authority within five years of the date of 22 encumbrance or obligation, or the moneys shall revert to the 23 state treasury. Moneys in the fund are appropriated to the 24 authority to provide financial assistance to an entity under 25 the program. 26 An entity that is awarded financial assistance pursuant to 27 the bill is not eligible to receive financial assistance under 28 the sports tourism infrastructure program. 29 For FY 2025-2026, the bill appropriates $15 million from 30 the sports wagering receipts fund to the Iowa major events and 31 tourism fund. 32 SPORTS TOURISM MARKETING PROGRAM AND FUND —— REPEAL. The 33 bill modifies the sports tourism marketing and infrastructure 34 program by repealing the sports tourism marketing program and 35 -17- LSB 1774SV (3) 91 ll/ns 17/ 18

S.F. 613 fund. The bill retains the sports tourism infrastructure 1 program and fund, and provides that any nonprofit organization 2 is eligible for financial assistance under the program, rather 3 than a convention and visitors bureau or certified regional 4 sports authority district. Upon the effective date of this 5 division of the bill, the bill transfers the remaining moneys 6 in the sports tourism marketing program fund to the Iowa major 7 events and tourism fund. 8 -18- LSB 1774SV (3) 91 ll/ns 18/ 18