Bill > SF613

Introduced Session

This bill concerns the regulation and support of leisure activities. GAMBLING REGULATION. Under current law, the tax rate imposed on sports wagering net receipts of a licensed operator is 6.75 percent, which is deposited in the sports wagering receipts fund. The bill increases the rate to 9 percent. For FY 2026-2027 and each fiscal year thereafter, the bill appropriates $8 million from the sports wagering receipts fund to the public safety equipment fund, which is used by the department of public safety (DPS) for purchase, maintenance, and replacement of equipment. The bill exempts the appropriated moneys from the sports wagering receipts fund reporting requirements under current law, as current law already requires DPS to report on the use of moneys in the public safety equipment fund. Under current law, to determine the license fees and regulatory fees to be charged in accordance with Code sections 99D.14 and 99F.10, the state racing and gaming commission (commission) must use the amount appropriated to the commission plus the gaming enforcement costs of DPS’s division of criminal investigation. The portion of the fees associated with such enforcement costs is deposited in the gaming enforcement revolving fund to be annually appropriated by the general assembly to DPS for gaming enforcement. The bill strikes the portion of the fees that is based on DPS enforcement costs, and the associated deposit in the gaming enforcement revolving fund. The bill does not amend the fees associated with DPS costs for fingerprinting, national criminal history check requirements, and background investigations for licenses to conduct internet fantasy sports contests (Code section 99E.4(4)). Current law provides that the tax imposed on pari-mutuel wagers on simulcast horse races is split in specified percentages between the city and county in which the racetrack is located and the commission for deposit as described in Code section 8.57(3) (rebuild Iowa infrastructure fund). The bill instead provides that such revenue is to be deposited in the Iowa horse racing fund, created in the bill, to be used by the commission for distribution to entities subject to federal horse racing regulations. Under current law, the annual license fee to operate an excursion gambling boat or gambling structure is $5 per person capacity. The bill increases the rate to $10 per person capacity. Under current law, a tax is imposed on the adjusted gross receipts received each fiscal year from excursion gambling boats, gambling structures, and racetrack enclosures conducting gambling games. The rate is 5 percent on the first $1 million and 10 percent on the next $2 million. Over $3 million, the tax rate is 22 percent for an excursion gambling boat or gambling structure, and between 22 and 24 percent for a racetrack enclosure based on the existence of an excursion gambling boat or gambling structure in the same county, whether the racetrack enclosure has been issued a table games license, and whether adjusted gross receipts reached $100 million. The bill eliminates this tax rate structure and imposes a tax of 22 percent for an excursion gambling boat or gambling structure, and 24.120 percent for a racetrack enclosure, on all adjusted gross receipts each fiscal year. For FY 2026-2027 and each fiscal year thereafter, prior to the remaining amount of the adjusted gross receipts tax being credited to the rebuild Iowa infrastructure fund as provided under current law, an amount is credited to the gaming enforcement revolving fund up to the amount appropriated by the general assembly to DPS for gaming enforcement from that fund for that fiscal year. This division of the bill takes effect January 1, 2026. IOWA MAJOR EVENTS AND TOURISM PROGRAM AND FUND. The bill requires the economic development authority (authority) to establish and administer an Iowa major events and tourism program (program), including an Iowa major events and tourism fund (fund). The purpose of the program is to provide financial assistance, including grants, to an entity supporting an event in this state, or an event involving a geographic region that includes this state, if the event generates large attendance, significant publicity, and measurable economic impact on this state. The financial assistance includes payment or reimbursement of costs incurred by the entity to apply or bid for selection as the site event, to plan or conduct the event, and to pay or reimburse any related fees including hosting fees, sanctioning fees, participation fees, operational fees, and bid fees. The bill defines “entity” to mean an Iowa nonprofit organization established to promote economic development and tourism in an area. The bill defines “event” to mean a tourism-oriented athletic contest, convention, music festival, or art festival. The bill requires the authority to establish eligibility criteria for the program by rule. The eligibility criteria must include the requirement that the entity be currently involved in the bidding and selection process for the event the application is based upon; and that the entity must submit an economic analysis of the event with the entity’s application that includes but is not limited to projected hotel and motel room occupancies, and the projected number of attendees the event attracts from this state, other states, and other countries. An application is deemed to meet all eligibility criteria if the state is selected as the event site after a highly competitive bidding and selection process involving sites in other states, if this state serves as the sole site for the event, or if the sole site for the event involves a geographic region that includes this state and one or more contiguous states. If an entity’s application meets the eligibility criteria established in the bill, the staff of the authority must perform an evaluation of the application and forward the application and evaluation to the economic development authority board (board). In evaluating an application, the bill requires the authority to consider the impact on the economy, the potential to attract visitors, advertising and media coverage, public-to-private investment ratios, and the quality, size, and scope of the event. Upon review of the staff evaluation, the board may approve, deny, defer, or modify the application. The bill allows the board and the authority to negotiate with the entity regarding the details of the event and the amount and terms of the financial assistance. An application remains eligible for consideration by the board for up to two years from the date of receipt of the application by the board. The bill requires applicants to demonstrate the ability to provide matching funds equal to at least 50 percent of the financial assistance awarded to the applicant. The bill requires the authority to establish a fund for the purposes of providing financial assistance under the program. The authority may administer the fund as a revolving fund. Moneys in the fund that are encumbered or obligated pursuant to financial assistance awarded under the program shall be disbursed by the authority within five years of the date of encumbrance or obligation, or the moneys shall revert to the state treasury. Moneys in the fund are appropriated to the authority to provide financial assistance to an entity under the program. An entity that is awarded financial assistance pursuant to the bill is not eligible to receive financial assistance under the sports tourism infrastructure program. For FY 2025-2026, the bill appropriates $15 million from the sports wagering receipts fund to the Iowa major events and tourism fund. SPORTS TOURISM MARKETING PROGRAM AND FUND —— REPEAL. The bill modifies the sports tourism marketing and infrastructure program by repealing the sports tourism marketing program and fund. The bill retains the sports tourism infrastructure program and fund, and provides that any nonprofit organization is eligible for financial assistance under the program, rather than a convention and visitors bureau or certified regional sports authority district. Upon the effective date of this division of the bill, the bill transfers the remaining moneys in the sports tourism marketing program fund to the Iowa major events and tourism fund.

AI Summary

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Committee report approving bill, renumbered as SF 625. S.J. 818. (on 04/16/2025)

Official Document