House File 2623 - Reprinted HOUSE FILE 2623 BY COMMITTEE ON WAYS AND MEANS (SUCCESSOR TO HF 2196) (SUCCESSOR TO HSB 502) (COMPANION TO SF 2240 BY COMMITTEE ON STATE GOVERNMENT) (As Amended and Passed by the House June 5, 2020 ) A BILL FOR An Act relating to gambling licensees concerning setoff 1 requirements on certain winnings on wagers, payments by 2 credit card, and qualified sponsoring organizations. 3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 4 HF 2623 (3) 88 ec/rn/md

H.F. 2623 Section 1. Section 99D.28, subsection 1, Code 2020, is 1 amended to read as follows: 2 1. A licensee or a person acting on behalf of a licensee 3 shall be provided electronic access to the names of the 4 persons indebted to a claimant agency pursuant to the process 5 established pursuant to section 99D.7, subsection 24 . The 6 electronic access provided by the claimant agency shall include 7 access to the names of the debtors, their social security 8 numbers, and any other information that assists the licensee 9 in identifying the debtors. If the name of a debtor provided 10 to the licensee through electronic access is retrieved by the 11 licensee and the winnings are equal to or greater than one 12 thousand two hundred dollars per occurrence required to be 13 reported on internal revenue service form W-2G for gambling 14 winnings , the retrieval of such a name shall constitute a 15 valid lien upon and claim of lien against the winnings of the 16 debtor whose name is electronically retrieved from the claimant 17 agency. If a debtor’s winnings are equal to or greater than 18 one thousand two hundred dollars per occurrence required to be 19 reported on internal revenue service form W-2G for gambling 20 winnings , the full amount of the debt shall be collectible 21 from any winnings due the debtor without regard to limitations 22 on the amounts that may be collectible in increments through 23 setoff or other proceedings. 24 Sec. 2. Section 99E.5, subsection 2, Code 2020, is amended 25 by adding the following new paragraph: 26 NEW PARAGRAPH . j. Prohibit participants in an internet 27 fantasy sports contest from making any payments by credit card. 28 Sec. 3. Section 99F.6, subsection 9, Code 2020, is amended 29 to read as follows: 30 9. The board of directors of a qualified sponsoring 31 organization licensed to conduct or operate gambling games 32 under this chapter shall be residents of this state and shall 33 include, at the option of each applicable county and city, as 34 ex officio, nonvoting members of the board, a member of the 35 -1- HF 2623 (3) 88 ec/rn/md 1/ 3

H.F. 2623 county board of supervisors and a member of a city council 1 for each county and city that has a licensed gambling games 2 facility which is conducted or operated by the qualified 3 sponsoring organization. The If a vacancy for any ex officio 4 members member occurs, the vacancy shall serve terms of the 5 same duration as voting members of the board be filled in the 6 same manner as the original appointment for the remainder of 7 the unexpired term of the vacancy . However, this subsection 8 shall not apply to an agency, instrumentality, or political 9 subdivision of the state that is licensed to conduct gambling 10 games under this chapter . 11 Sec. 4. Section 99F.9, subsection 7, Code 2020, is amended 12 to read as follows: 13 7. A licensee shall not accept a credit card as defined 14 in section 537.1301, subsection 17 , for sports wagering or to 15 purchase coins, tokens, or other forms of credit to be wagered 16 on gambling games. 17 Sec. 5. Section 99F.19, subsection 1, Code 2020, is amended 18 to read as follows: 19 1. A licensee or a person acting on behalf of a licensee 20 shall be provided electronic access to the names of the 21 persons indebted to a claimant agency pursuant to the process 22 established pursuant to section 99F.4, subsection 26 . The 23 electronic access provided by the claimant agency shall include 24 access to the names of the debtors, their social security 25 numbers, and any other information that assists the licensee 26 in identifying the debtors. If the name of a debtor provided 27 to the licensee through electronic access is retrieved by the 28 licensee and the winnings are equal to or greater than one 29 thousand two hundred dollars per occurrence required to be 30 reported on internal revenue service form W-2G for gambling 31 winnings , the retrieval of such a name shall constitute a 32 valid lien upon and claim of lien against the winnings of the 33 debtor whose name is electronically retrieved from the claimant 34 agency. If a debtor’s winnings are equal to or greater than 35 -2- HF 2623 (3) 88 ec/rn/md 2/ 3

H.F. 2623 one thousand two hundred dollars per occurrence required to be 1 reported on internal revenue service form W-2G for gambling 2 winnings , the full amount of the debt shall be collectible 3 from any winnings due the debtor without regard to limitations 4 on the amounts that may be collectible in increments through 5 setoff or other proceedings. 6 -3- HF 2623 (3) 88 ec/rn/md 3/ 3