Bill Text: IA HF2380 | 2019-2020 | 88th General Assembly | Introduced
Bill Title: A bill for an act relating to promotional play receipts, gambling games, and sports wagering. (Formerly HSB 512.)
Spectrum: Committee Bill
Status: (Introduced - Dead) 2020-03-04 - Fiscal note. [HF2380 Detail]
Download: Iowa-2019-HF2380-Introduced.html
House
File
2380
-
Introduced
HOUSE
FILE
2380
BY
COMMITTEE
ON
STATE
GOVERNMENT
(SUCCESSOR
TO
HSB
512)
A
BILL
FOR
An
Act
relating
to
promotional
play
receipts,
gambling
games,
1
and
sports
wagering.
2
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
3
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2380
Section
1.
Section
99F.1,
subsections
1,
25,
and
30,
Code
1
2020,
are
amended
to
read
as
follows:
2
1.
“Adjusted
gross
receipts”
means
the
gross
receipts
on
3
gambling
games
less
winnings
paid
to
wagerers
on
gambling
games
4
and
less
promotional
play
receipts
on
gambling
games.
However,
5
for
each
fiscal
year
during
the
time
period
beginning
July
1,
6
2020,
and
ending
June
30,
2024,
“adjusted
gross
receipts”
does
7
not
shall
include
promotional
play
receipts
received
after
the
8
date
in
any
fiscal
year
that
the
commission
determines
that
9
the
wagering
tax
imposed
pursuant
to
section
99F.11
on
all
10
licensees
in
that
fiscal
year
on
promotional
play
receipts
11
exceeds
twenty-five
million
eight
hundred
twenty
thousand
12
dollars
on
gambling
games
.
13
25.
“Promotional
play
receipts”
means
the
total
sums
wagered
14
on
gambling
games
with
tokens,
chips,
electronic
credits,
or
15
other
forms
of
cashless
wagering
provided
by
the
licensee
16
without
an
exchange
of
money
as
described
in
section
99F.9,
17
subsection
3
.
18
30.
“Sports
wagering
net
receipts”
means
the
gross
receipts
19
less
winnings
paid
to
wagerers
and
less
promotional
play
20
receipts
on
sports
wagering.
21
Sec.
2.
Section
99F.6,
subsection
4,
paragraph
a,
22
subparagraphs
(3)
and
(5),
Code
2020,
are
amended
to
read
as
23
follows:
24
(3)
The
commission
shall
authorize,
subject
to
the
debt
25
payments
for
horse
racetracks
and
the
provisions
of
paragraph
26
“b”
for
dog
racetracks,
a
licensee
who
is
also
licensed
to
27
conduct
pari-mutuel
dog
or
horse
racing
to
use
receipts
28
from
gambling
games
and
sports
wagering
within
the
racetrack
29
enclosure
to
supplement
purses
for
races
particularly
for
30
Iowa-bred
horses
pursuant
to
an
agreement
which
shall
be
31
negotiated
between
the
licensee
and
representatives
of
the
32
dog
or
horse
owners.
For
agreements
subject
to
commission
33
approval
concerning
purses
for
horse
racing
beginning
on
or
34
after
January
1,
2006,
the
agreements
shall
provide
that
total
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annual
purses
for
all
horse
racing
shall
be
four
percent
of
1
sports
wagering
net
receipts
and
promotional
play
receipts
on
2
sports
wagering
and
no
less
than
eleven
percent
of
the
first
3
two
hundred
million
dollars
of
net
receipts,
and
six
percent
of
4
net
receipts
above
two
hundred
million
dollars.
In
addition,
5
live
standardbred
horse
racing
shall
not
be
conducted
at
the
6
horse
racetrack
in
Polk
county,
but
the
purse
moneys
designated
7
for
standardbred
racing
pursuant
to
section
99D.7,
subsection
8
5
,
paragraph
“b”
,
shall
be
included
in
calculating
the
total
9
annual
purses
required
to
be
paid
pursuant
to
this
subsection
.
10
Agreements
that
are
subject
to
commission
approval
concerning
11
horse
purses
for
a
period
of
time
beginning
on
or
after
January
12
1,
2006,
shall
be
jointly
submitted
to
the
commission
for
13
approval.
14
(5)
For
purposes
of
this
paragraph,
“net
receipts”
means
15
the
annual
adjusted
gross
receipts
from
all
gambling
games
16
and,
beginning
July
1,
2024,
promotional
play
receipts
on
all
17
gambling
games
less
the
annual
amount
of
money
pledged
by
the
18
owner
of
the
facility
to
fund
a
project
approved
to
receive
19
vision
Iowa
funds
as
of
July
1,
2004.
20
Sec.
3.
Section
99F.11,
Code
2020,
is
amended
by
adding
the
21
following
new
subsection:
22
NEW
SUBSECTION
.
2A.
a.
Notwithstanding
any
provision
23
of
this
section
to
the
contrary,
the
tax
rate
imposed
on
a
24
licensee
each
fiscal
year
on
any
amount
of
promotional
pay
25
receipts
on
gambling
games
included
as
adjusted
gross
receipts
26
shall
be
determined
by
multiplying
the
adjusted
percentage
27
by
the
wagering
tax
applicable
to
the
licensee
pursuant
to
28
subsection
2.
29
b.
For
purposes
of
this
subsection,
“adjusted
percentage”
30
means
as
follows:
31
(1)
For
the
fiscal
year
beginning
July
1,
2020,
and
ending
32
June
30,
2021,
eighty
percent.
33
(2)
For
the
fiscal
year
beginning
July
1,
2021,
and
ending
34
June
30,
2022,
sixty
percent.
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(3)
For
the
fiscal
year
beginning
July
1,
2022,
and
ending
1
June
30,
2023,
forty
percent.
2
(4)
For
the
fiscal
year
beginning
July
1,
2023,
and
ending
3
June
30,
2024,
twenty
percent.
4
c.
This
subsection
is
repealed
July
1,
2024.
5
EXPLANATION
6
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
7
the
explanation’s
substance
by
the
members
of
the
general
assembly.
8
This
bill
concerns
promotional
play
receipts
for
purposes
of
9
Code
chapter
99F
governing
gambling
games
and
sports
wagering.
10
Code
section
99F.1,
concerning
definitions,
is
amended.
11
The
bill
amends
the
definition
of
adjusted
gross
receipts
on
12
gambling
games
to
provide
that
adjusted
gross
receipts
includes
13
promotional
play
receipts
through
June
30,
2024,
and
excludes
14
them
thereafter.
Currently,
adjusted
gross
receipts
includes
15
promotional
play
receipts
until
the
date
in
any
fiscal
year
16
that
the
wagering
tax
on
the
portion
of
adjusted
gross
receipts
17
representing
promotional
play
receipts
exceeds
$25,820,000.
18
The
bill
also
amends
the
definition
of
sports
wagering
net
19
receipts
to
exclude
promotional
play
receipts
on
sports
20
wagering.
21
Code
section
99F.6,
concerning
applicant
requirements,
is
22
amended
to
provide
that
promotional
play
receipts
on
sports
23
wagering
and
gambling
games
shall
be
included
for
purposes
of
24
determining
total
annual
purses
for
horse
racing.
25
Code
section
99F.11,
establishing
tax
rates
for
gambling
26
games
and
sports
wagering,
is
amended.
The
bill
establishes
27
a
new
subsection
that
provides
for
a
different
tax
rate
to
be
28
applied
to
promotional
play
receipts
as
a
portion
of
adjusted
29
gross
receipts
on
gambling
games.
The
bill
provides
that
the
30
applicable
tax
rate
is
the
rate
applied
per
licensee
pursuant
31
to
subsection
2
multiplied
by
an
adjusted
percentage.
The
bill
32
provides
that
the
adjusted
percentage
for
FY
2020-2021
is
80
33
percent,
for
FY
2021-2022,
60
percent,
for
FY
2022-2023,
40
34
percent,
and
for
FY
2023-2024,
20
percent.
This
new
subsection
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