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Senate Study Bill 3066 - IntroducedA Bill ForAn Act 1relating to gambling facility licensees concerning
2setoff requirements on certain winnings on wagers and
3qualified sponsoring organizations.
4BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1 Section 1. Section 99D.28, subsection 1, Code 2020, is
2amended to read as follows:
31. A licensee or a person acting on behalf of a licensee
4shall be provided electronic access to the names of the
5persons indebted to a claimant agency pursuant to the process
6established pursuant to section 99D.7, subsection 24. The
7electronic access provided by the claimant agency shall include
8access to the names of the debtors, their social security
9numbers, and any other information that assists the licensee
10in identifying the debtors. If the name of a debtor provided
11to the licensee through electronic access is retrieved by the
12licensee and the winnings are equal to or greater than one
13thousand two hundred dollars per occurrence required to be
14reported on internal revenue service form W-2G for gambling
15winnings, the retrieval of such a name shall constitute a
16valid lien upon and claim of lien against the winnings of the
17debtor whose name is electronically retrieved from the claimant
18agency. If a debtor’s winnings are equal to or greater than
19one thousand two hundred dollars per occurrence required to be
20reported on internal revenue service form W-2G for gambling
21winnings, the full amount of the debt shall be collectible
22from any winnings due the debtor without regard to limitations
23on the amounts that may be collectible in increments through
24setoff or other proceedings.
25 Sec. 2. Section 99F.6, subsection 9, Code 2020, is amended
26by striking the subsection and inserting in lieu thereof the
27following:
289. A qualified sponsoring organization licensed to conduct
29or operate gambling games under this chapter shall ensure that
30all of the following requirements are met:
31a. The board of directors of the qualified sponsoring
32organization shall be residents of this state and shall
33include, at the option of each applicable county and city,
34a member of the county board of supervisors and a member of
35the city council for each county and city that has a licensed
-1-1gambling games facility in which the qualified sponsoring
2organization conducts or operates gambling games as ex
3officio, nonvoting members of the board. The ex officio
4members shall be selected by the applicable county board of
5supervisors or city council, shall not be required to enter
6into a nondisclosure agreement as a condition for service on
7the board, and shall serve terms of the same duration as voting
8members of the board.
9b. If applicable, an organization other than a municipality
10that receives contributions from the qualified sponsoring
11organization to distribute grants for educational, civic,
12public, charitable, patriotic, or religious uses shall comply
13with the requirements of paragraph “a” regarding the board of
14directors of the organization.
15c. The qualified sponsoring organization and, if applicable,
16an organization described in paragraph “b”, shall conduct
17and submit to the commission an audit of the organization’s
18operations consistent with section 99F.13.
19 Sec. 3. Section 99F.19, subsection 1, Code 2020, is amended
20to read as follows:
211. A licensee or a person acting on behalf of a licensee
22shall be provided electronic access to the names of the
23persons indebted to a claimant agency pursuant to the process
24established pursuant to section 99F.4, subsection 26. The
25electronic access provided by the claimant agency shall include
26access to the names of the debtors, their social security
27numbers, and any other information that assists the licensee
28in identifying the debtors. If the name of a debtor provided
29to the licensee through electronic access is retrieved by the
30licensee and the winnings are equal to or greater than one
31thousand two hundred dollars per occurrence required to be
32reported on internal revenue service form W-2G for gambling
33winnings, the retrieval of such a name shall constitute a
34valid lien upon and claim of lien against the winnings of the
35debtor whose name is electronically retrieved from the claimant
-2-1agency. If a debtor’s winnings are equal to or greater than
2one thousand two hundred dollars per occurrence required to be
3reported on internal revenue service form W-2G for gambling
4winnings, the full amount of the debt shall be collectible
5from any winnings due the debtor without regard to limitations
6on the amounts that may be collectible in increments through
7setoff or other proceedings.
8EXPLANATION
9The inclusion of this explanation does not constitute agreement with
10the explanation’s substance by the members of the general assembly.
11This bill relates to setoff requirements on certain winnings
12on wagers and qualified sponsoring organizations licensed to
13conduct or operate gambling games.
14The bill amends setoff requirements related to winnings on
15wagers under Code chapters 99D and 99F. Under current law,
16a debtor who wins money on a wager at a racetrack, excursion
17gambling boat, or gambling structure in this state is subject
18to a setoff from those winnings of the amount of debt owed if
19the winnings are equal to or greater than $1,200. The bill
20strikes the dollar threshold amount in Code sections 99D.28 and
2199F.19 and provides that debtors are subject to the setoff if
22the winnings are required to be reported on internal revenue
23service form W-2G for gambling winnings. The requirements to
24file internal revenue service form W-2G depend on the amount of
25winnings and the type of wager.
26The bill also amends provisions relating to qualified
27sponsoring organizations licensed to conduct or operate
28gambling games under Code chapter 99F.
29Code section 99F.6, subsection 9, relating to the board
30of directors of a qualified sponsoring organization, is
31stricken and rewritten by the bill. The bill retains the
32current requirement that the board of directors of a qualified
33sponsoring organization be residents of the state and that the
34board of directors include a member of the county board of
35supervisors and city council of each applicable county and city
-3-1that has a licensed facility as ex officio nonvoting members of
2the board. The bill further provides that selection of these
3nonvoting members is at the option of the applicable county or
4city and that the ex officio members shall not be required to
5enter into a nondisclosure agreement as a condition for service
6on the board. The bill also provides that the provisions
7governing board members of a qualified sponsoring organization
8also apply to an organization that receives contributions from
9the qualified sponsoring organization to distribute grants
10for charitable uses. The bill requires that the qualified
11sponsoring organization and, if applicable, an organization
12that receives contributions from the qualified sponsoring
13organization to distribute grants, shall conduct and submit to
14the racing and gaming commission an audit on the organization’s
15activities consistent with the requirements of Code section
1699F.13.
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2setoff requirements on certain winnings on wagers and
3qualified sponsoring organizations.
4BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1 Section 1. Section 99D.28, subsection 1, Code 2020, is
2amended to read as follows:
31. A licensee or a person acting on behalf of a licensee
4shall be provided electronic access to the names of the
5persons indebted to a claimant agency pursuant to the process
6established pursuant to section 99D.7, subsection 24. The
7electronic access provided by the claimant agency shall include
8access to the names of the debtors, their social security
9numbers, and any other information that assists the licensee
10in identifying the debtors. If the name of a debtor provided
11to the licensee through electronic access is retrieved by the
12licensee and the winnings are equal to or greater than one
13thousand two hundred dollars per occurrence required to be
14reported on internal revenue service form W-2G for gambling
15winnings, the retrieval of such a name shall constitute a
16valid lien upon and claim of lien against the winnings of the
17debtor whose name is electronically retrieved from the claimant
18agency. If a debtor’s winnings are equal to or greater than
19one thousand two hundred dollars per occurrence required to be
20reported on internal revenue service form W-2G for gambling
21winnings, the full amount of the debt shall be collectible
22from any winnings due the debtor without regard to limitations
23on the amounts that may be collectible in increments through
24setoff or other proceedings.
25 Sec. 2. Section 99F.6, subsection 9, Code 2020, is amended
26by striking the subsection and inserting in lieu thereof the
27following:
289. A qualified sponsoring organization licensed to conduct
29or operate gambling games under this chapter shall ensure that
30all of the following requirements are met:
31a. The board of directors of the qualified sponsoring
32organization shall be residents of this state and shall
33include, at the option of each applicable county and city,
34a member of the county board of supervisors and a member of
35the city council for each county and city that has a licensed
-1-1gambling games facility in which the qualified sponsoring
2organization conducts or operates gambling games as ex
3officio, nonvoting members of the board. The ex officio
4members shall be selected by the applicable county board of
5supervisors or city council, shall not be required to enter
6into a nondisclosure agreement as a condition for service on
7the board, and shall serve terms of the same duration as voting
8members of the board.
9b. If applicable, an organization other than a municipality
10that receives contributions from the qualified sponsoring
11organization to distribute grants for educational, civic,
12public, charitable, patriotic, or religious uses shall comply
13with the requirements of paragraph “a” regarding the board of
14directors of the organization.
15c. The qualified sponsoring organization and, if applicable,
16an organization described in paragraph “b”, shall conduct
17and submit to the commission an audit of the organization’s
18operations consistent with section 99F.13.
19 Sec. 3. Section 99F.19, subsection 1, Code 2020, is amended
20to read as follows:
211. A licensee or a person acting on behalf of a licensee
22shall be provided electronic access to the names of the
23persons indebted to a claimant agency pursuant to the process
24established pursuant to section 99F.4, subsection 26. The
25electronic access provided by the claimant agency shall include
26access to the names of the debtors, their social security
27numbers, and any other information that assists the licensee
28in identifying the debtors. If the name of a debtor provided
29to the licensee through electronic access is retrieved by the
30licensee and the winnings are equal to or greater than one
31thousand two hundred dollars per occurrence required to be
32reported on internal revenue service form W-2G for gambling
33winnings, the retrieval of such a name shall constitute a
34valid lien upon and claim of lien against the winnings of the
35debtor whose name is electronically retrieved from the claimant
-2-1agency. If a debtor’s winnings are equal to or greater than
2one thousand two hundred dollars per occurrence required to be
3reported on internal revenue service form W-2G for gambling
4winnings, the full amount of the debt shall be collectible
5from any winnings due the debtor without regard to limitations
6on the amounts that may be collectible in increments through
7setoff or other proceedings.
8EXPLANATION
9The inclusion of this explanation does not constitute agreement with
10the explanation’s substance by the members of the general assembly.
11This bill relates to setoff requirements on certain winnings
12on wagers and qualified sponsoring organizations licensed to
13conduct or operate gambling games.
14The bill amends setoff requirements related to winnings on
15wagers under Code chapters 99D and 99F. Under current law,
16a debtor who wins money on a wager at a racetrack, excursion
17gambling boat, or gambling structure in this state is subject
18to a setoff from those winnings of the amount of debt owed if
19the winnings are equal to or greater than $1,200. The bill
20strikes the dollar threshold amount in Code sections 99D.28 and
2199F.19 and provides that debtors are subject to the setoff if
22the winnings are required to be reported on internal revenue
23service form W-2G for gambling winnings. The requirements to
24file internal revenue service form W-2G depend on the amount of
25winnings and the type of wager.
26The bill also amends provisions relating to qualified
27sponsoring organizations licensed to conduct or operate
28gambling games under Code chapter 99F.
29Code section 99F.6, subsection 9, relating to the board
30of directors of a qualified sponsoring organization, is
31stricken and rewritten by the bill. The bill retains the
32current requirement that the board of directors of a qualified
33sponsoring organization be residents of the state and that the
34board of directors include a member of the county board of
35supervisors and city council of each applicable county and city
-3-1that has a licensed facility as ex officio nonvoting members of
2the board. The bill further provides that selection of these
3nonvoting members is at the option of the applicable county or
4city and that the ex officio members shall not be required to
5enter into a nondisclosure agreement as a condition for service
6on the board. The bill also provides that the provisions
7governing board members of a qualified sponsoring organization
8also apply to an organization that receives contributions from
9the qualified sponsoring organization to distribute grants
10for charitable uses. The bill requires that the qualified
11sponsoring organization and, if applicable, an organization
12that receives contributions from the qualified sponsoring
13organization to distribute grants, shall conduct and submit to
14the racing and gaming commission an audit on the organization’s
15activities consistent with the requirements of Code section
1699F.13.
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