Senate File 482 - Enrolled
SENATE FILE
BY COMMITTEE ON WAYS AND
MEANS
(SUCCESSOR TO SF 442)
(SUCCESSOR TO SSB
1217)
\5
A BILL FOR
\1
Senate File 482
AN ACT
CONCERNING SOCIAL AND CHARITABLE GAMBLING AND MAKING PENALTIES
APPLICABLE.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
DIVISION I
SOCIAL AND CHARITABLE GAMBLING
Section 1. Section 99B.1, subsection 1, Code 2015, is
amended by striking the subsection and inserting in lieu
thereof the following:
1. "Amusement concession" means a game of skill or
game of chance with an instant win possibility where, if
the participant completes a task, the participant wins a
prize. "Amusement concession" includes but is not limited to
carnival=style games that are conducted by a person for profit.
"Amusement concession" does not include casino=style games or
amusement devices required to be registered pursuant to section
99B.53.
Sec. 2. Section 99B.1, subsections 2, 3, 5, 6, 15, 16, 17,
20, 21, and 26, Code 2015, are amended to read as follows:
2. "Amusement device" means an electrical or mechanical
device possessed and used in accordance with section 99B.10
this chapter. When possessed and used in accordance with
that section this chapter, an amusement device is not a game of
skill or game of chance, and is not a gambling device.
3. "Applicant" means an individual or an organization
applying for a license under this chapter.
5. "Bingo" means a game, whether known as bingo or any other
name, in which each participant uses one or more cards each
of which is marked off into spaces arranged in horizontal and
vertical rows of spaces, with each space being designated by
number, letter, symbol, or picture, or combination of numbers,
and letters, no symbols, or pictures. No two cards being shall
be identical, with. In the game of bingo, players covering
shall cover spaces on the card or cards as the operator of the
game announces to the players the number, letter, symbol, or
picture, or combination of numbers, and letters, symbols, or
pictures, appearing on an object selected by chance, either
manually or mechanically, from a receptacle in which have
been placed objects bearing numbers, letters, symbols, or
pictures, or combinations of numbers, and letters, symbols,
or pictures corresponding to the system used for designating
the spaces, with the. The winner of each game being is the
player or players first properly covering a predetermined and
announced pattern of spaces on a card being used by the player
or players. Each determination of a winner by the method
described in the preceding sentence this subsection is a single
bingo game at any bingo occasion.
6. "Bingo occasion" means a single gathering or session
at which successive a series of bingo games are is played. A
bingo occasion commences begins when the operator of the a
bingo game begins to announce the selects an object with a
number, letter, symbol, or picture, or combination of numbers,
or letters, symbols, or pictures through which the winner of a
single the first bingo game in a series of bingo games will be
determined. A bingo occasion ends when at least one hour has
elapsed since a bingo game is played or when an announcement by
the operator of the bingo game is made that the bingo occasion
is over, whichever first occurs.
15. "Game of chance" means a game whereby the result is
determined by chance and the player in order to win aligns
completes activities, such as aligning objects or balls in a
prescribed pattern or order or makes certain color patterns
appear and. "Game of chance" specifically includes but is not
limited to the game defined as bingo. Game of chance "Game of
chance" does not include a slot machine or amusement device.
16. "Game of skill" means a game whereby the result is
determined by the player player's ability to do a task, such as
directing or throwing objects to designated areas or targets,
or by maneuvering water or an object into a designated area, or
by maneuvering a dragline device to pick up particular items,
or by shooting a gun or rifle.
17. "Gross receipts" means the total revenue received from
the sale of rights to participate in a game of skill, game of
chance, bingo, or raffle and admission fees or charges.
20. "Merchandise" means goods or services that are bought
and sold in the regular course of business. "Merchandise"
includes lottery tickets or shares sold or authorized under
chapter 99G. The value of the lottery ticket or share is the
price of the lottery ticket or share as established by the
Iowa lottery authority pursuant to chapter 99G. "Merchandise"
includes a gift card if the gift card is not redeemable for
cash.
21. "Net receipts" means gross receipts less amounts awarded
as prizes and less state and local sales tax paid upon the
gross receipts. Reasonable expenses, charges, fees, taxes
other than the state and local sales tax, and deductions
allowed by the department shall not exceed twenty=five percent
of net receipts.
26. "Raffle" means a lottery in which each participant
buys a ticket an entry for a chance at a prize with the winner
determined by a random method and the winner is not required to
be present to win. "Raffle" does not include a slot machine.
Sec. 3. Section 99B.1, subsections 4, 10, 12, 13, 18, 19,
23, 24, 27, and 28, Code 2015, are amended by striking the
subsections.
Sec. 4. Section 99B.1, subsection 8, Code 2015, is amended
by striking the subsection and inserting in lieu thereof the
following:
8. "Bookmaking" means the determining of odds and receipt
and paying off of bets by an individual or publicly or
privately owned enterprise not present when the wager or bet
was undertaken.
Sec. 5. Section 99B.1, Code 2015, is amended by adding the
following new subsections:
NEW SUBSECTION. 8A. "Build=up or pyramid" means a raffle
or a game in which a prize must be returned in order to play
another game or to be eligible for another bigger prize, a game
in which a prize must be forfeited if a later game is lost, or a
raffle which is multi=step and requires the participant to win
at multiple steps to win the grand prize.
NEW SUBSECTION. 8B. "Calendar raffle" means a raffle where
a single entry is entered in one raffle where winners will be
selected over multiple dates.
NEW SUBSECTION. 8C. "Casino=style games" means any house
banking game, including but not limited to casino=style card
games such as poker, baccarat, chemin de fer, blackjack, and
pai gow, and casino games such as roulette, craps, and keno.
"Casino=style games" does not include a slot machine.
NEW SUBSECTION. 8D. "Charitable uses" includes uses
benefiting a definite number of persons who are the victims of
loss of home or household possessions through explosion, fire,
flood, or storm when the loss is uncompensated by insurance,
and uses benefiting a definite number of persons suffering from
a seriously disabling disease or injury, causing severe loss of
income or incurring extraordinary medical expense when the loss
is uncompensated by insurance.
NEW SUBSECTION. 12A. "Educational, civic, public,
charitable, patriotic, or religious uses" includes uses
benefiting a society for the prevention of cruelty to animals
or animal rescue league; uses benefiting an indefinite
number of persons either by bringing them under the influence
of education or religion or relieving them from disease,
suffering, or constraint, or by erecting or maintaining
public buildings or works, or otherwise lessening the burden
of government; and uses benefiting any bona fide nationally
chartered fraternal or military veterans' corporation or
organization which operates in Iowa a clubroom, post, dining
room, or dance hall, but does not include the erection,
acquisition, improvement, maintenance, or repair of real,
personal, or mixed property unless it is used for one or more
of the uses described in this subsection.
NEW SUBSECTION. 14A. "Gambling" means any activity where a
person risks something of value or other consideration for a
chance to win a prize.
NEW SUBSECTION. 14B. "Game night" means an event at
which casino=style games may be conducted, in addition to
games of skill and games of chance, within one consecutive
twenty=four=hour period.
NEW SUBSECTION. 17A. "Licensed qualified organization"
means a qualified organization that is issued a license under
this chapter and that complies with the requirements for a
qualified organization issued a license under this chapter.
NEW SUBSECTION. 24A. "Public uses" specifically includes
dedication of net receipts to political parties as defined in
section 43.2.
Sec. 6. Section 99B.1, subsection 25, Code 2015, is amended
by striking the subsection and inserting in lieu thereof the
following:
25. "Qualified organization" means an organization that has
an active membership of not less than twelve persons, does not
have a self=perpetuating governing body and officers, and meets
any of the following requirements:
a. Is exempt from federal income taxes under section
501(c)(3), 501(c)(4), 501(c)(5), 501(c)(6), 501(c)(7),
501(c)(8), 501(c)(10), or 501(c)(19) of the Internal Revenue
Code as defined in section 422.3.
b. Is an agency or instrumentality of the United States
government, this state, or a political subdivision of this
state.
c. Is a parent=teacher organization or booster club that
is recognized as a fund=raiser and supporter for a school
district organized pursuant to chapter 274 or for a school
within the school district, in a notarized letter signed by the
president of the board of directors, the superintendent of the
school district, or a principal of a school within that school
district.
d. Is a political party, as defined in section 43.2, or a
nonparty political organization that has qualified to place
a candidate as its nominee for statewide office pursuant to
chapter 44, or to a candidate's committee as defined in section
68A.102.
Sec. 7. Section 99B.3, Code 2015, is amended to read as
follows:
99B.3 Amusement concessions.
1. A game of skill or game of chance is lawful when
conducted by a person at an amusement concession, but only
A person may conduct an amusement concession if all of the
following are complied with conditions are met:
a. The location where the game is conducted by the person
has been authorized as provided in section 99B.4.
b. The person conducting the game amusement concession has
submitted a license application and a fee of fifty dollars for
each game amusement concession, and has been issued a license
for the game amusement concession, and prominently displays the
license at the playing area of the game amusement concession.
A license is valid for a period of one year from the date of
issue.
c. Gambling other than the licensed game is not conducted or
engaged in at the amusement concession.
d. b. The game is rules of the amusement concession are
prominently posted and the visible from all playing positions.
c. The cost to play the game a single amusement concession
does not exceed three five dollars.
e. d. A prize is not displayed which cannot be won.
f. e. Cash prizes are not awarded and merchandise prizes
are not repurchased.
g. f. The game amusement concession is not operated on a
build=up or pyramid basis.
g. A pet, as defined in section 717E.1, is not awarded.
h. The actual retail value of any prize does not exceed
fifty one hundred dollars. If a prize consists of more than
one item, unit, or part, the aggregate retail value of all
items, units, or parts shall not exceed fifty one hundred
dollars.
i. Merchandise prizes are not repurchased from the
participants. However, a participant may have the option, at
no additional cost to the participant, of trading multiple
smaller prizes for a single larger prize.
j. Concealed numbers or conversion charts are not used to
play the game and the game amusement concession.
k. The amusement concession is not designed or adapted with
any control device to permit manipulation of the game amusement
concession by the operator in order to prevent a player from
winning or to predetermine who the winner will be, and the
object target, block or.
l. The object of the game amusement concession must be
attainable and possible to perform under the rules stated from
the all playing position of the player positions.
j. m. The game amusement concession is conducted in a fair
and honest manner.
2. It is lawful for an An individual other than a person
conducting the game to amusement concession may participate in
a game of skill or game of chance conducted at an amusement
concession, whether or not the amusement concession is
conducted in compliance with subsection 1 this section.
Sec. 8. Section 99B.5A, subsection 1, paragraph b, Code
2015, is amended to read as follows:
b. "Community group" means an Iowa nonprofit, tax=exempt
organization which is open to the general public and
established for the promotion and development of the arts,
history, culture, ethnicity, historic preservation, tourism,
economic development, festivals, or municipal libraries.
"Community group" does not include a school, college,
university, political party, labor union, state or federal
government agency, fraternal organization, church, convention
or association of churches, or organizations operated primarily
for religious purposes, or which are operated, supervised,
controlled, or principally supported by a church, convention,
or association of churches.
Sec. 9. Section 99B.5A, subsection 2, paragraphs a, c, and
e, Code 2015, are amended to read as follows:
a. Bingo is conducted by the sponsor of the fair or
community festival or a qualified organization licensed under
section 99B.7 99B.12B that has received permission from the
sponsor of the fair or community festival to conduct bingo.
c. The number of bingo occasions conducted by a licensee
under this section shall be limited to one for each day of the
duration of the fair or community festival.
e. Except as provided in this section, the provisions of
sections 99B.2 and 99B.7 this chapter related to bingo shall
apply.
Sec. 10. Section 99B.5A, subsection 4, Code 2015, is amended
to read as follows:
4. Bingo occasions held under a license under this section
shall not be counted in determining whether a qualified
organization has conducted more than fourteen fifteen bingo
occasions per month. In addition, bingo occasions held under
this license shall not be limited to four consecutive hours.
Sec. 11. Section 99B.6, Code 2015, is amended by striking
the section and inserting in lieu thereof the following:
99B.6 Social gambling in licensed alcohol establishments.
1. Social gambling is lawful on the premises of an
establishment for which a class "A", class "B", class "C",
special class "C", or class "D" liquor control license, or
class "B" beer permit has been issued pursuant to chapter 123
when, subject to the provisions of section 99B.42, all of the
following requirements are met:
a. The liquor control licensee or beer permittee has
submitted an application for a social gambling license and a
license fee of one hundred fifty dollars to the department, and
a license has been issued.
b. The license is prominently displayed on the premises of
the establishment.
c. The social gambling licensee or any agent or employee
of the licensee does not participate in, sponsor, conduct,
promote, or act as cashier or banker for any social gambling,
except as a participant while playing on the same basis as
every other participant.
d. A person under the age of twenty=one years shall not
participate in the social games. A social gambling licensee
or an agent or employee of the licensee who knowingly allows
a person under the age of twenty=one to participate in the
gambling prohibited by this section or a person who knowingly
participates in gambling with a person under the age of
twenty=one, is subject to a penalty under section 99B.15.
2. A liquor control licensee or beer permittee with a social
gambling license issued pursuant to this section may conduct
a sports betting pool if all of the requirements of this
subsection are met.
a. The pool shall be publicly displayed and the rules of
the pool, including the cost per participant and the amount or
amounts that will be won, shall be conspicuously displayed on
or near the pool.
b. A participant shall not wager more than five dollars in
the pool.
c. The maximum winnings awarded to all participants in the
pool shall not exceed five hundred dollars.
d. The provisions of section 99B.42, except section 99B.42,
subsection 1, paragraphs "a" and "h", are applicable to pools
conducted under this subsection.
e. The use of concealed numbers in the pool is permissible.
If the pool involves the use of concealed numbers, the numbers
shall be selected by a random method and no person shall be
aware of the numbers at the time wagers are made in the pool.
f. All moneys wagered in the pool shall be awarded as
winnings to participants.
3. An establishment issued a social gambling license under
this section that is required to obtain a new liquor license
or permit under chapter 123 due to a change in ownership shall
be required to obtain a new social gambling license under this
section to conduct social gambling.
Sec. 12. Section 99B.7A, Code 2015, is amended by striking
the section and inserting in lieu thereof the following:
99B.7A Manufacturers and distributors == bingo equipment and
supplies == electronic raffle systems == transfer or use.
1. As used in this section, unless the context otherwise
requires, "manufacturer or distributor" means a person engaged
in business in this state who originally produces, or purchases
from a business that originally produces, equipment or supplies
which are specifically used in the conduct of a bingo occasion
or an electronic raffle.
2. A person shall not engage in business in this state as a
manufacturer or distributor without first obtaining a license
from the department.
a. Upon receipt of an application and a fee of one thousand
dollars for a manufacturer or distributor license, the
department may issue an annual license.
b. A license may be renewed annually upon submission of an
application, payment of the annual license fee, and compliance
with this section and the rules adopted pursuant to this
section.
3. A licensed manufacturer or distributor may sell bingo
equipment or supplies or an electronic raffle system directly
to a licensed qualified organization.
4. A licensed qualified organization under this chapter
may dispose of, transfer, or sell excess bingo equipment or
supplies on a nonroutine basis to another licensed qualified
organization.
5. A licensed qualified organization shall not sublease,
rent, borrow, or otherwise use another qualified organization's
electronic raffle system.
Sec. 13. Section 99B.7B, subsection 1, Code 2015, is amended
to read as follows:
1. As used in this section, unless the context otherwise
requires:
a. "Card game" means only includes but is not limited to
poker, pinochle, pitch, gin rummy, bridge, euchre, hearts, or
cribbage.
b. "Qualified organization representing veterans" means any
licensed qualified organization representing which represents
veterans, which is a post, branch, or chapter of a national
association of veterans of the armed forces of the United
States which is a federally chartered corporation, dedicates
the net receipts of a game of skill, game of chance, or raffle
as provided in section 99B.7 99B.14A, and is exempt from
federal income taxes under section 501(c)(19) of the Internal
Revenue Code as defined in section 422.3, has an active
membership of not less than twelve persons, and does not have a
self=perpetuating governing body and officers.
Sec. 14. Section 99B.7B, subsection 2, Code 2015, is amended
by adding the following new paragraph:
NEW PARAGRAPH. 0a. The qualified organization representing
veterans has been issued a license pursuant to section 99B.12B.
The license application shall identify the premises where the
card game tournaments are to be conducted and the occupancy
limit of the premises, and shall include documentation that
the qualified organization representing veterans has conducted
regular meetings of the organization at the premises during the
previous eight months.
Sec. 15. Section 99B.7B, subsection 2, paragraphs a, b, c,
d, e, and g, Code 2015, are amended to read as follows:
a. The qualified organization conducting the card game
tournament has been issued a license pursuant to subsection 4
and representing veterans prominently displays that the license
in the playing area of the card game tournament.
b. The card games to be conducted during a card game
tournament, including the rules of each card game and how
winners are determined, shall be displayed prominently in the
playing area of the card game tournament.
0c. Each card game shall be conducted in a fair and honest
manner and.
00c. Each card game shall not be operated on a build=up or
pyramid basis.
000c. Every participant in a card game tournament must be
given the same chances of winning the tournament and shall not
be allowed any second chance entries or multiple entries in the
card game tournament.
c. Participation in a card game tournament conducted by
a qualified organization representing veterans shall only be
open to members of the qualified organization representing
veterans and guests of members of the qualified organization
participating in the tournament, subject to the requirements of
this section.
0d. The total number of members and guests participating in
a card game tournament shall not exceed the occupancy limit of
the premises where the card game tournament is being conducted.
00d. Participants in a card game tournament shall be at
least twenty=one years of age.
d. (1) If the card game tournament is limited to one guest
for each member of the qualified organization representing
veterans participating in the tournament, then the requirements
of this subparagraph (1) shall apply. The cost to participate
in a card game tournament under this subparagraph (1) shall be
limited to one hundred dollars and shall be the same for every
participant in the card game tournament. Cash or merchandise
prizes may be awarded during a card game tournament under this
subparagraph (1) and shall not exceed one thousand dollars and
no participant shall win more than a total of five hundred
dollars.
(2) If the card game tournament is not limited to one guest
for each member of the qualified organization representing
veterans participating in the tournament, then the requirements
of this subparagraph (2) shall apply. The cost to participate
in a card game tournament under this subparagraph (2) shall be
limited to twenty=five dollars and shall be the same for every
participant in the card game tournament. Cash or merchandise
prizes may be awarded during a card game tournament under this
subparagraph (2) and shall not exceed three hundred dollars
and no participant shall win more than a total of two hundred
dollars.
(3) 0e. A qualified organization representing veterans
shall distribute amounts awarded as prizes on the day they
are won and merchandise prizes shall not be repurchased. An
organization conducting a card game tournament shall only
display prizes in the playing area of the card game tournament
that can be won.
e. The qualified organization representing veterans shall
conduct each card game tournament and any card game conducted
during the tournament and shall not contract with or permit
another person to conduct the card game tournament or any card
game during the tournament. In addition, the
0f. The card game tournament and any card game conducted
during the tournament shall be conducted only on the premises
of the qualified organization representing veterans as
identified in the license application pursuant to as required
by this subsection 4.
g. A qualified organization representing veterans licensed
under this section shall not hold more than two card game
tournaments per month and shall not hold a card game tournament
within seven calendar days of another card game tournament
conducted by that qualified organization representing veterans.
Card game tournaments held under an annual during a game night
license conducted pursuant to section 99B.26 shall not count
toward the limit of one card game tournament per week for a
license holder. A qualified organization representing veterans
shall be allowed to hold only one card game tournament during
any period of twenty=four consecutive hours, starting from the
time the card game tournament begins.
Sec. 16. Section 99B.7B, subsection 2, paragraph h, Code
2015, is amended by striking the paragraph.
Sec. 17. Section 99B.7B, subsection 3, Code 2015, is amended
to read as follows:
3. The qualified organization representing veterans
licensed to hold card game tournaments under this section
shall keep a journal of all dates of events, amount of gross
receipts, amount given out as prizes, expenses, amount
collected for taxes, and the amount collected as revenue.
a. The qualified organization representing veterans shall
dedicate and distribute the net receipts from each card
game tournament as provided in section 99B.7, subsection 3,
paragraph "b" 99B.14A.
b. Each qualified organization representing veterans shall
withhold that portion of the gross receipts subject to taxation
pursuant to section 423.2, subsection 4, which shall be kept
in a separate account and sent to the state along with the
organization's annual report required by section 99B.2 99B.16A.
c. A qualified organization representing veterans licensed
to conduct card game tournaments is allowed to may withhold no
more than five percent of the gross receipts from each card
game tournament for qualified expenses. Qualified expenses
include but are not limited to the purchase of supplies and
materials used in conducting card games. Any money collected
for expenses and not used by the end of the state fiscal year
shall be donated for educational, civic, public, charitable,
patriotic, or religious uses as described in section 99B.7,
subsection 3, paragraph "b". The qualified organization
representing veterans shall attach a receipt for any donation
made to the annual report required to be submitted pursuant to
section 99B.2 99B.16A.
d. Each qualified organization representing veterans
licensed under this section shall make recordkeeping and all
deposit receipts available as provided in section 99B.2,
subsection 2 99B.16A.
Sec. 18. Section 99B.7B, subsection 4, Code 2015, is amended
by striking the subsection.
Sec. 19. Section 99B.9, Code 2015, is amended by striking
the section and inserting in lieu thereof the following:
99B.9 Social gambling in public places.
Social gambling in a public place is lawful, subject to
the provisions of section 99B.42, if all of the following
requirements are met:
1. The social gambling is conducted at any public place
owned, leased, rented, or otherwise occupied by the licensee.
2. The person occupying the premises of the public place as
an owner or tenant has submitted an application for a license
and a fee of one hundred dollars to the department, and a
license has been issued.
3. The license is prominently displayed on the premises of
the public place.
4. The licensee or any agent or employee of the licensee
does not participate in, sponsor, conduct, promote, or act
as cashier or banker for any gambling activities, except as
a participant while playing on the same basis as every other
participant.
Sec. 20. Section 99B.10A, Code 2015, is amended to read as
follows:
99B.10A Electrical and or mechanical amusement device
manufacturers, distributors, and for=profit owners ==
registration.
1. A person engaged in business in this state as a
manufacturer, manufacturer's representative, distributor, or
for=profit owner of electrical and or mechanical amusement
devices required to be registered as provided in section
99B.10, subsection 1, paragraph "f" 99B.53, shall register with
the department. Each person who registers with the department
under this section shall pay an annual registration fee in an
amount as provided in subsection 2. Registration shall be
submitted on application forms designated by the department
that shall contain the information required by the department
by rule. The department shall adopt rules establishing the
criteria for approval or denial of a registration application
and providing for the submission of information to the
department by a person registered pursuant to this section if
information in the initial registration is changed, including
discontinuing the business in this state.
2. For purposes of this section, the annual registration fee
shall be as follows:
a. For a manufacturer or manufacturer's representative, two
thousand five hundred dollars.
b. For a distributor, five thousand dollars.
c. For an owner of no more than two four electrical and or
mechanical amusement devices registered as provided in section
99B.10, subsection 1, paragraph "f" 99B.53, at a single location
or premises that is not an a qualified organization that meets
the requirements of section 99B.7, subsection 1, paragraph "m",
two thousand five hundred dollars.
Sec. 21. Section 99B.10B, Code 2015, is amended to read as
follows:
99B.10B Revocation of registration == electrical and or
mechanical amusement devices == suspension of liquor license or
beer permit.
1. a. The department may deny, suspend, or revoke a
registration issued pursuant to section 99B.10 or 99B.10A or
99B.53, if the department finds that an applicant, registrant,
or an agent of a registrant violated or permitted a violation
of a provision of section 99B.10, 99B.10A, or 99B.10C, 99B.52,
or 99B.53, or a departmental rule adopted pursuant to chapter
17A, or for any other cause for which the director of the
department would be or would have been justified in refusing to
issue a registration, or upon the conviction of a person of a
violation of this chapter or a rule adopted under this chapter
which occurred on the premises where the registered amusement
device is or is to be located. However, the
b. The denial, suspension, or revocation of a registration
for one amusement device does not require, but may result in,
the denial, suspension, or revocation of the registration for
a different amusement device held by the same distributor or
owner.
b. c. However, a A person who commits an offense of failing
to include a security mechanism on an amusement device as
required pursuant to section 99B.10, subsection 1, paragraph
"m" 99B.52, subsection 4, shall be subject to a civil penalty in
the amount of two hundred fifty dollars. A person who commits,
within two years, a second offense of failing to include a
security mechanism on an amusement device shall be subject to
the provisions of paragraph "a".
2. a. A person who commits an offense of awarding a cash
prize of fifty dollars or less in violation of section 99B.10,
subsection 1, paragraph "b" 99B.52, subsection 3, pursuant
to rules adopted by the department, shall be subject to a
civil penalty in the amount of two hundred fifty dollars.
Additional sanctions beyond the civil penalty prescribed by
this paragraph, including but not limited to the suspension or
revocation of any liquor control license issued pursuant to
chapter 123 or registration issued pursuant to section 99B.10A
or 99B.53, shall not be applicable.
b. A person who commits, within two years, a second offense
of awarding a cash prize of fifty dollars or less in violation
of section 99B.10, subsection 1, paragraph "b" 99B.52,
subsection 3, or a person who commits an offense of awarding a
cash prize of more than fifty dollars in violation of section
99B.10, subsection 1, paragraph "b" 99B.52, subsection 3,
pursuant to rules adopted by the department, shall be subject
to revocation of the person's registration and the following:
(1) If the person whose registration is revoked under this
paragraph "b", is a person for which a class "A", class "B",
class "C", special class "C", or class "D" liquor control
license has been issued pursuant to chapter 123, the person's
liquor control license shall be suspended for a period of
fourteen days in the same manner as provided in section 123.50,
subsection 3, paragraph "a".
(2) If the person whose registration is revoked under this
paragraph "b", is a person for which only a class "B" or class
"C" beer permit has been issued pursuant to chapter 123, the
person's class "B" or class "C" beer permit shall be suspended
for a period of fourteen days in the same manner as provided in
section 123.50, subsection 3, paragraph "a".
(3) If a person owning or employed by an establishment
having a class "A", class "B", class "C", special class "C",
or class "D" liquor control license issued pursuant to chapter
123 commits an offense as provided in this paragraph "b", the
liquor control license of the establishment shall be suspended
for a period of fourteen days in the same manner as provided in
section 123.50, subsection 3, paragraph "a".
(4) If a person owning or employed by an establishment
having a class "B" or class "C" beer permit issued pursuant to
chapter 123 commits an offense as provided in this paragraph
"b", the beer permit of the establishment shall be suspended
for a period of fourteen days in the same manner as provided in
section 123.50, subsection 3, paragraph "a".
3. a. The process for denial, suspension, or revocation of
a registration issued pursuant to section 99B.10 or 99B.10A,
or 99B.53, shall commence by delivering to the applicant or
registrant by certified mail, return receipt requested, or
by personal service a notice, by means authorized by section
17A.18, setting forth the proposed action and the particular
reasons for such action.
b. (1) If a written request for a hearing is not received
within thirty days after the mailing or service of the the
delivery of notice as provided by paragraph "a", the denial,
suspension, or revocation of a registration shall become
effective pending a final determination by the department. The
proposed action in the notice may be affirmed, modified, or set
aside by the department in a written decision.
(2) If a request for a hearing is timely received by
the department, the applicant or registrant shall be given
an opportunity for a prompt and fair hearing before the
department and the denial, suspension, or revocation shall
be deemed suspended until the department makes a final
determination. However, the director of the department may
suspend a registration prior to a hearing if the director
finds that the public integrity of the registered activity
is compromised or there is a risk to public health, safety,
or welfare. In addition, at any time during or prior to the
hearing, the department may rescind the notice of the denial,
suspension, or revocation upon being satisfied that the reasons
for the denial, suspension, or revocation have been or will
be removed. On the basis of any such hearing, the proposed
action in the notice may be affirmed, modified, or set aside by
the department in a written decision. The procedure governing
hearings authorized by this paragraph shall be in accordance
with the rules promulgated by the department and chapter 17A.
c. A copy of the final decision of the department shall
be sent by electronic mail or certified mail, with return
receipt requested, or served personally upon the applicant or
registrant. The applicant or registrant may seek judicial
review in accordance with the terms of the Iowa administrative
procedure Act, chapter 17A.
d. If the department finds cause for denial of a
registration issued pursuant to section 99B.10 or 99B.10A,
or 99B.53, the applicant shall not reapply for the same
registration for a period of two years. If the department
finds cause for a suspension or revocation, the registration
shall be suspended or revoked for a period not to exceed two
years.
Sec. 22. Section 99B.10C, Code 2015, is amended to read as
follows:
99B.10C Electrical and Registered electrical or mechanical
amusement devices == persons under twenty=one == penalties.
1. A person under the age of twenty=one years shall not
participate in the operation of an a registered electrical and
or mechanical amusement device. A person who violates this
subsection commits a scheduled violation under section 805.8C,
subsection 4.
2. A person owning or leasing an a registered electrical
and or mechanical amusement device, or an employee of a person
owning or leasing an a registered electrical and or mechanical
amusement device, who knowingly allows a person under the age
of twenty=one years to participate in the operation of an a
registered electrical and or mechanical amusement device, or
a person who knowingly participates in the operation of an a
registered electrical and or mechanical amusement device with a
person under the age of twenty=one years, is guilty of a simple
misdemeanor.
3. For purposes of this section, an electrical and
mechanical amusement device "registered electrical or mechanical
amusement device" means an electrical and or mechanical
amusement device required to be registered as provided in
section 99B.10, subsection 1, paragraph "f" 99B.53.
Sec. 23. Section 99B.10D, Code 2015, is amended to read as
follows:
99B.10D Electrical and or mechanical amusement devices ==
special fund.
Fees collected by the department pursuant to sections
99B.10 and 99B.10A and 99B.53 shall be deposited in a special
fund created in the state treasury. Moneys in the fund are
appropriated to the department of inspections and appeals
and the department of public safety for administration and
enforcement of sections 99B.10, 99B.10A, 99B.10B, and 99B.10C
this subchapter, including employment of necessary personnel.
The distribution of moneys in the fund to the department of
inspections and appeals and the department of public safety
shall be pursuant to a written policy agreed upon by the
departments. Notwithstanding section 12C.7, subsection 2,
interest or earnings on moneys deposited in the fund shall be
credited to the fund. Notwithstanding section 8.33, moneys
remaining in the fund at the end of a fiscal year shall not
revert to the general fund of the state.
Sec. 24. Section 99B.11, Code 2015, is amended to read as
follows:
99B.11 Bona fide contests.
1. It is lawful for a A person to may conduct, without a
license, any of the contests specified in subsection 2, and to
may offer and pay awards to persons winning in those contests
whether or not entry fees, participation fees, or other charges
are assessed against or collected from the participants, but
only if all of the following requirements are complied with
met:
a. The contest is not held at an amusement concession.
b. No A gambling device is not used in conjunction with, or
incident to the contest.
c. b. The contest is not conducted in whole or in part
on or in any property subject to chapter 297, relating to
schoolhouses and schoolhouse sites, unless the contest and the
person conducting the contest has the express written approval
of the governing body of that school district.
d. c. The contest is conducted in a fair and honest manner.
d. A contest shall not be designed or adapted to permit the
operator of the contest to prevent a participant from winning
or to predetermine who the winner will be, and the.
e. The object of the contest must be attainable and possible
to perform under the rules stated.
f. If the contest is a tournament, the tournament operator
shall prominently display all tournament rules.
2. A contest, including a contest in a league or tournament,
is not lawful unless only if it is falls into one of the
following contests event categories:
a. Athletic or sporting events. Athletic or sporting
contests, leagues or tournaments, Events in this category
include basketball, volleyball, football, baseball, softball,
soccer, wrestling, swimming, track and field, racquetball,
tennis, squash, badminton, table tennis, rodeos, horse shows,
golf, bowling, trap or skeet shoots, fly casting, tractor
pulling, rifle, pistol, musket, or muzzle=loader shooting, pool
billiards, darts, archery, and horseshoe contests, leagues, or
tournaments horseshoes.
b. Racing and skill=type events. Horse Events in this
category include horse races, harness racing, ski, airplane,
snowmobile, raft, boat, bicycle, and motor vehicle races.
c. Arts and crafts=type events. Contests or exhibitions
of Events in this category include cooking, horticulture,
livestock, poultry, fish or other animals, artwork, hobbywork
or, and craftwork, except those prohibited by chapter 717A.
d. Card game=type and board game=type events. Cribbage,
Events in this category include cribbage, bridge, euchre,
chess, checkers, dominoes, and pinochle and similar contests,
leagues or tournaments. The provisions of this paragraph are
retroactive to August 15, 1975.
e. Trivia and trading card events.
f. Video game=type and video sporting=type events. A video
machine golf tournament game which is an interactive bona fide
contest. A player operates a video machine golf tournament
game with a trackball assembly which acts as the golfer's swing
and determines the results of play and tournament scores. A
video machine golf tournament game is capable of receiving
program and data information from an off=site location. A
tournament operator shall prominently display all tournament
rules. Events in this category include pinball games, video
games, and video machine golf tournament games, where skill
is the predominant factor in determining the result of play
and tournament scores. To be lawful, a player shall operate a
video machine with a device which directly impacts the results
of the game.
3. A poker, blackjack, craps, keno, or roulette contest,
league, or tournament shall not be considered a bona fide
contest under this section.
Sec. 25. NEW SECTION. 99B.11A Definitions.
As used in this subchapter and subchapter III, unless the
context otherwise requires:
1. "Electronic bingo equipment" means an electronic device
that assists an individual with a disability in the use of a
bingo card during a bingo game.
2. "Large raffle" means a raffle where the cumulative value
of cash and prizes is more than ten thousand dollars but not
more than one hundred thousand dollars.
3. "Small raffle" means a raffle where the cumulative value
of cash and prizes is more than one thousand dollars but not
more than ten thousand dollars.
4. "Very large raffle" means a raffle where the cumulative
value of cash and prizes is more than one hundred thousand
dollars but not more than two hundred thousand dollars or the
prize is real property.
5. "Very small raffle" means a raffle where the cumulative
value of the cash prize or prizes is one thousand dollars or
less and the value of all entries sold is one thousand dollars
or less, or the cumulative value of the donated merchandise
prize or prizes is five thousand dollars or less and the value
of all entries sold is five thousand dollars or less.
Sec. 26. Section 99B.12, Code 2015, is amended by striking
the section and inserting in lieu thereof the following:
99B.12 Social gambling between individuals.
1. An individual may participate in social gambling if,
subject to the requirements of section 99B.42, all of the
following requirements are met:
a. The gambling is not participated in, either wholly or in
part, on or in any schoolhouses, schoolhouse sites, or other
property subject to chapter 297.
b. All participants in the gambling are individuals.
c. In any game requiring a dealer or operator, the
participants must have the option to take their turn at dealing
or operating the game in a regular order according to the
standard rules of the game.
2. Social gambling allowed under this section is limited to
any of the following:
a. Games of skill and games of chance, except casino=style
games other than poker.
b. Wagers or bets between two or more individuals who are
physically in the presence of each other with respect to any
of the following:
(1) A contest specified in section 99B.11, except that no
individual shall win or lose more than a total of two hundred
dollars or equivalent consideration in one or more contests at
any time during any period of twenty=four consecutive hours or
over that entire period.
(2) Any other event or outcome which does not depend upon
gambling or the use of a gambling device that is unlawful in
this state.
Sec. 27. NEW SECTION. 99B.12B Qualified organization
licenses == general provisions == types of licenses.
1. General provisions.
a. A qualified organization shall submit an application for
a license, along with any required fees, to the department at
least thirty days in advance of the beginning of the gambling
activity, including the sale of entries or promotion of the
sale of entries for raffles.
b. For purposes of this section, a license is deemed to be
issued on the first day of the period for which the license is
issued.
c. An applicant that has not submitted an annual report
required pursuant to section 99B.16A shall submit such report
prior to approval of the application.
d. A license shall not be issued to an applicant whose
previous license issued under this chapter or chapter 123 has
been revoked until the period of revocation or revocations has
elapsed.
e. The license fee is not refundable.
2. Two=year qualified organization license.
a. The license fee for a two=year qualified organization
license is one hundred fifty dollars.
b. An applicant for a license under this subsection shall
be a qualified organization that has been in existence for at
least five years, or is a local chapter or an affiliate of a
national tax=exempt organization that has been in existence
for at least two years and has provided written authorization
from the national organization to the department. The national
tax=exempt organization shall be exempt from federal income
taxes as described in section 99B.1, subsection 25, paragraph
"a", and have been in existence at least five years.
c. A qualified organization issued a two=year qualified
organization license may conduct the following activities:
(1) Unlimited games of skill or games of chance except for
bingo.
(2) An unlimited number of very small raffles and an
unlimited number of small raffles, including electronic
raffles.
(3) One large raffle, including an electronic raffle,
each calendar year during the two=year period, subject to the
requirements of section 99B.24.
(4) Up to three bingo occasions per week and up to fifteen
bingo occasions per month.
(5) One game night each calendar year during the two=year
period, subject to the requirements of section 99B.26.
3. One=year qualified organization raffle license.
a. The license fee for a one=year qualified organization
raffle license is one hundred fifty dollars.
b. A qualified organization issued a one=year qualified
organization raffle license may conduct the following
activities:
(1) An unlimited number of very small raffles and an
unlimited number of small raffles.
(2) Up to eight large raffles with each large raffle
conducted in a different county during the one=year period,
subject to the requirements of section 99B.24.
(3) One game night during the one=year period, subject to
the requirements of section 99B.26.
4. One hundred eighty=day qualified organization raffle
license.
a. The license fee for a one hundred eighty=day qualified
organization raffle license is seventy=five dollars.
b. A qualified organization issued a one hundred eighty=day
qualified organization raffle license may conduct the following
activities:
(1) An unlimited number of very small raffles and an
unlimited number of small raffles.
(2) One large raffle during the period of one hundred eighty
days, subject to the requirements of section 99B.24.
(3) One game night during the period of one hundred eighty
days, subject to the requirements of section 99B.26.
5. Ninety=day qualified organization raffle license.
a. The license fee for a ninety=day qualified organization
raffle license is forty dollars.
b. A qualified organization issued a ninety=day qualified
organization raffle license may conduct the following
activities:
(1) An unlimited number of very small raffles and an
unlimited number of small raffles.
(2) One large raffle during the period of ninety days,
subject to the requirements of section 99B.24.
(3) One game night during the period of ninety days, subject
to the requirements of section 99B.26.
6. Fourteen=day qualified organization license.
a. The license fee for a fourteen=day qualified organization
license is fifteen dollars.
b. A qualified organization issued a fourteen=day qualified
organization license may conduct the following activities:
(1) Unlimited games of skill or games of chance except for
bingo.
(2) An unlimited number of very small raffles and an
unlimited number of small raffles.
(3) One large raffle during the period of fourteen days,
subject to the requirements of section 99B.24.
(4) Two bingo occasions during the period of fourteen days
with no limit on the number of bingo games or the number of
hours played during each designated bingo day. Bingo occasions
conducted pursuant to a fourteen=day qualified organization
license do not count toward the fifteen bingo occasions per
month authorized for a two=year qualified organization license.
(5) One game night during the period of fourteen days,
subject to the requirements of section 99B.26.
7. Qualified organizations == school provisions. A school
district or a public or nonpublic school may be issued a
qualified organization license under this section subject to
the following additional restrictions:
a. The application for a license shall be authorized by
the board of directors of a school district for public schools
within that district, or the policymaking body of a nonpublic
school for a nonpublic school.
b. Activities authorized by the license may be held at
bona fide school functions such as carnivals, fall festivals,
bazaars, and similar events.
c. Each school shall obtain a license pursuant to this
section prior to permitting the games or activities on the
premises of that school.
d. The board of directors of a public school district
may also be issued a license under this section. A board
of directors of a public school district shall not spend or
authorize the expenditure of public funds for the purpose of
purchasing a license.
e. Upon written approval by the board of directors of a
school district for public schools within that district or
the policymaking body of a nonpublic school, the license may
be used by any school group or parent support group in the
district or at the nonpublic school to conduct activities
authorized by this section. The board of directors or
policymaking body shall not authorize a school group or parent
support group to use the license to conduct more than two
events in a calendar year.
8. Qualified organizations == miscellaneous provisions. A
political party or party organization may contract with other
qualified organizations to conduct the games of skill, games
of chance, and raffles which may lawfully be conducted by the
political party or party organization. A licensed qualified
organization may promote the games of skill, games of chance,
and raffles which it may lawfully conduct.
Sec. 28. NEW SECTION. 99B.13A Licensed qualified
organizations == general requirements.
A qualified organization licensed pursuant to section
99B.12B shall, as a condition of licensure under section
99B.12B, comply with the requirements of this section.
1. Authorized gambling activities == display of license. A
licensed qualified organization may only conduct gambling
activities as authorized by the license and shall prominently
display the license in the playing area where the gambling
activities are conducted.
2. Location requirements.
a. Gambling activities, as authorized by the type of
license, may be conducted on premises owned, leased, or rented
by the licensee. The amount imposed and collected for rental
or lease of such premises shall not be a percentage of, or
otherwise related to, the amount of the receipts for the
authorized gambling activities.
b. A gambling activity shall not take place on a gaming
floor, as defined in section 99F.1, licensed by the state
racing and gaming commission created in section 99D.5.
3. Participation requirements.
a. A person shall not receive or have any fixed or
contingent right to receive, directly or indirectly, any
profit, remuneration, or compensation from or related to a
gambling activity conducted by a licensee, except any amount
which the person may win as a participant on the same basis as
the other participants.
b. The price to participate in a gambling activity,
including any discounts for the gambling activity, shall be the
same for each participant during the course of the gambling
activity.
c. The person conducting the gambling activity shall not
participate in the game.
4. Gambling activity requirements.
a. A gambling activity shall not be operated on a build=up
or pyramid basis.
b. Bookmaking shall not be allowed.
c. Concealed numbers or conversion charts shall not be used
in conducting any gambling activity.
d. A gambling activity shall not be adapted with any control
device to permit manipulation of the gambling activity by
the operator in order to prevent a player from winning or to
predetermine who the winner will be.
e. The object of the gambling activity must be attainable
and possible to perform under the rules stated from the playing
position of the player.
f. The gambling activity shall be conducted in a fair and
honest manner.
g. Rules for each gambling activity shall be posted.
h. Casino=style games shall only be allowed during a game
night as specified under section 99B.26 or during card game
tournaments under section 99B.7B.
Sec. 29. Section 99B.14, Code 2015, is amended to read as
follows:
99B.14 License denial, suspension, and revocation.
1. The department may deny, suspend, or revoke a license
if the department finds that an applicant, licensee, or an
agent of the licensee violated or permitted a violation of
a provision of this chapter or a departmental rule adopted
pursuant to chapter 17A, or for any other cause for which
the director of the department would be or would have
been justified in refusing to issue a license, or upon the
conviction of a person of a violation of this chapter or a
rule adopted under this chapter which occurred on the licensed
premises. However, the denial, suspension, or revocation of
one type of gambling license does not require, but may result
in, the denial, suspension, or revocation of a different type
of gambling license held by the same licensee. In addition, a
2. A person whose license is revoked under this section who
is a person for which whom a class "A", class "B", class "C",
or class "D" liquor control license has been issued pursuant
to chapter 123 shall have the person's liquor control license
suspended for a period of fourteen days in the same manner as
provided in section 123.50, subsection 3, paragraph "a". In
addition, a
3. A person whose license is revoked under this section
who is a person for which whom only a class "B" or class "C"
beer permit has been issued pursuant to chapter 123 shall have
the person's class "B" or class "C" beer permit suspended for
a period of fourteen days in the same manner as provided in
section 123.50, subsection 3, paragraph "a".
2. 4. The process for denial, suspension, or revocation
of a license shall commence by delivering to the applicant
or licensee by certified mail, return receipt requested, or
by personal service a notice, by means authorized by section
17A.18, setting forth the particular reasons for such action.
a. If a written request for a hearing is not received within
thirty days after the mailing or service of the delivery of
notice as provided in this subsection, the denial, suspension,
or revocation of a license shall become effective pending a
final determination by the department. The determination
involved in the notice may be affirmed, modified, or set aside
by the department in a written decision.
b. If a request for a hearing is timely received by the
department, the applicant or licensee shall be given an
opportunity for a prompt and fair hearing before the department
and the denial, suspension, or revocation shall be deemed
suspended until the department makes a final determination.
However, the director may suspend a license prior to a hearing
if the director finds that the public integrity of the licensed
activity is compromised or there is a risk to public health,
safety, or welfare. In addition, at any time during or prior
to the hearing the department may rescind the notice of the
denial, suspension, or revocation upon being satisfied that the
reasons for the denial, suspension, or revocation have been
or will be removed. On the basis of any such hearing, the
determination involved in the notice may be affirmed, modified,
or set aside by the department in a written decision.
3. 5. A copy of the final decision of the department shall
be sent by electronic mail or certified mail, with return
receipt requested, or served personally upon the applicant
or licensee. The applicant or licensee may seek judicial
review in accordance with the terms of the Iowa administrative
procedure Act, chapter 17A.
4. 6. The procedure governing hearings authorized by this
section shall be in accordance with the rules promulgated by
the department and chapter 17A.
5. 7. If the department finds cause for denial of a
license, the applicant may not reapply for the same license
for a period of two years. If the department finds cause
for suspension, the license shall be suspended for a period
determined by the department. If the department finds cause
for revocation, the license shall be revoked for a period not
to exceed two years.
Sec. 30. NEW SECTION. 99B.14A Distribution of proceeds ==
licensed qualified organizations.
1. A licensed qualified organization shall certify
that the receipts from all charitable gambling conducted
by the organization under this chapter, less reasonable
expenses, charges, fees, taxes, and deductions, either will
be distributed as prizes to participants or will be dedicated
and distributed for educational, civic, public, charitable,
patriotic, or religious uses. Reasonable expenses, charges,
fees, taxes other than the state and local sales tax, and
deductions allowed by the department shall not exceed forty
percent of net receipts.
2. A licensed qualified organization shall dedicate and
distribute the balance of the net receipts received within
a calendar year and remaining after deduction of reasonable
expenses, charges, fees, taxes, and deductions allowed by
this chapter, before the annual report required under section
99B.16A is due.
a. A person desiring to hold the net receipts for a period
longer than permitted under this subsection shall apply to the
department for special permission and upon good cause shown the
department may grant the request.
b. If permission is granted to hold the net receipts,
the person shall, as a part of the annual report required by
section 99B.16A, report the amount of money being held and all
expenditures of the funds. This report shall be filed even if
the person no longer holds a gambling license.
3. Proceeds coming into the possession of a person under
this section are deemed to be held in trust for payment
of expenses and dedication to educational, civic, public,
charitable, patriotic, or religious uses as required by this
section.
4. A licensed qualified organization or agent of the
organization who willfully fails to dedicate the required
amount of proceeds to educational, civic, public, charitable,
patriotic, or religious uses as required by this section
commits a fraudulent practice under chapter 714.
5. Proceeds distributed to another charitable organization
to satisfy the sixty percent dedication requirement shall not
be used by the donee to pay any expenses in connection with the
conducting of any gambling activity by the donor organization,
or for any use that would not constitute a valid dedication
under this section.
Sec. 31. Section 99B.15, Code 2015, is amended by striking
the section and inserting in lieu thereof the following:
99B.15 Penalties.
In addition to any other penalty specified in this chapter,
the following penalties shall apply:
1. A person who knowingly fails to comply with the
requirements of this chapter and the rules adopted pursuant to
chapter 17A commits a serious misdemeanor.
2. A person who intentionally files a false or fraudulent
report or application as required by this chapter commits a
fraudulent practice under chapter 714.
Sec. 32. NEW SECTION. 99B.15A Prizes awarded by licensed
qualified organizations.
1. Unless otherwise provided, a prize awarded by a licensed
qualified organization shall comply with the following
requirements:
a. Only merchandise prizes whose value does not exceed ten
thousand dollars may be awarded for games of skill and games
of chance. If a prize consists of more than one item, unit, or
part, the aggregate value of all items, units, or parts shall
not exceed ten thousand dollars.
b. A merchandise prize shall not be repurchased.
c. No prize shall be displayed which cannot be won.
d. A cash prize may only be awarded in bingo and raffles.
e. A prize shall be distributed on the day the prize is won,
except that if the winner is not present, notification to the
winner shall be made as soon as practical.
2. A licensed qualified organization awarding a prize
for bingo is subject to the restrictions provided in section
99B.21A. A licensed qualified organization awarding a prize
for a raffle is subject to the restrictions provided in section
99B.24.
Sec. 33. NEW SECTION. 99B.16A Records and reports ==
licensed qualified organization.
1. A qualified organization licensed pursuant to section
99B.12B, unless otherwise provided, shall maintain proper
books of account and records showing, in addition to any other
information required by the department, the following:
a. Gross receipts and the amount of the gross receipts
taxes collected or accrued with respect to gambling activities
conducted by the licensed qualified organization.
b. All expenses, charges, fees, and other deductions.
c. The cash amounts, or the cost to the licensee of goods
or other noncash valuables, distributed to participants in the
licensed activity.
d. The amounts dedicated and the date and name and address
of each person to whom distributed.
2. The books of account and records shall be made available
to the department or a law enforcement agency for inspection at
reasonable times, with or without notice. A failure to permit
inspection is a serious misdemeanor.
3. A licensed qualified organization required to maintain
records shall submit an annual report to the department on
forms furnished by the department. The annual report shall be
submitted by January 31 of each year for the prior calendar
year period of January 1 through December 31.
Sec. 34. Section 99B.17, Code 2015, is amended by striking
the section and inserting in lieu thereof the following:
99B.17 Allowable forms for payment.
1. Social gambling, registered amusement devices, and
amusement concessions not at a permanent location, require
payment solely by cash.
2. Except as provided by subsection 1, a participant in
an activity authorized by this chapter may make payment by
cash, personal check, money order, bank check, cashier's check,
electronic check, or debit card.
3. The department shall adopt rules setting minimum
standards to ensure compliance with applicable federal law and
for the protection of personal information consistent with
payment card industry compliance regulations.
Sec. 35. Section 99B.21, Code 2015, is amended to read as
follows:
99B.21 Tax on prizes.
All prizes awarded pursuant to a gambling activity under
this chapter are Iowa earned income and are subject to state
and federal income tax laws. A person conducting a game of
skill, game of chance, bingo, or a raffle shall deduct state
income taxes, pursuant to section 422.16, subsection 1, from a
cash prize awarded to an individual. An amount deducted from
the prize for payment of a state tax shall be remitted to the
department of revenue on behalf of the prize winner.
Sec. 36. NEW SECTION. 99B.21A Bingo.
A licensed qualified organization shall comply with the
requirements of this section for the purposes of conducting
bingo at a bingo occasion.
1. Operational requirements.
a. A bingo occasion shall not last for longer than four
consecutive hours.
b. Only one licensed qualified organization may conduct
bingo occasions within the same structure or building.
c. A licensed qualified organization shall not conduct or
offer free bingo games.
d. A licensed qualified organization shall not conduct bingo
within a building or structure that is licensed pursuant to
chapter 99D or 99F.
2. Prize requirements.
a. A cash or merchandise prize may be awarded in the game of
bingo.
b. A cash prize shall not exceed two hundred fifty dollars
per game of bingo.
c. A merchandise prize may be awarded in the game of bingo,
but the actual retail value of the prize, or if the prize
consists of more than one item, unit, or part, the aggregate
retail value of all items, units, or parts, shall not exceed
two hundred fifty dollars in value.
d. A jackpot bingo game may be conducted twice during any
twenty=four=hour period in which the prize may begin at not
more than five hundred dollars in cash or actual retail value
of merchandise prizes and may be increased by not more than two
hundred dollars after each bingo occasion to a maximum prize
of one thousand dollars for the first jackpot bingo game and
two thousand five hundred dollars for the second jackpot bingo
game.
3. Equipment requirements.
a. A licensed qualified organization conducting bingo shall
purchase bingo equipment and supplies only from a manufacturer
or distributor licensed by the department.
b. A licensed qualified organization may lease electronic
bingo equipment from a manufacturer or distributor licensed
by the department for the purposes of aiding individuals with
disabilities during a bingo occasion.
4. Accounting requirements. A qualified organization
conducting bingo occasions under a two=year qualified
organization license and expecting annual gross receipts of
more than ten thousand dollars shall establish and maintain one
regular checking account designated the "bingo account" and may
also maintain one or more interest=bearing savings accounts
designated as "bingo savings account". The accounts shall be
maintained in a financial institution in Iowa.
a. Funds derived from the conduct of bingo, less the
amount awarded as cash prizes, shall be deposited in the bingo
account.
(1) No other funds except limited funds of the organization
deposited to pay initial or unexpected emergency expenses shall
be deposited in the bingo account.
(2) Deposits shall be made no later than the next business
day following the day of the bingo occasion on which the
receipts were obtained.
b. Payments shall be paid from the bingo account only for
the following purposes:
(1) The payment of reasonable expenses permitted under
section 99B.14A, subsection 1, incurred and paid in connection
with the conduct of bingo.
(2) The disbursement of net proceeds derived from the
conduct of bingo for educational, civic, public, charitable,
patriotic, or religious uses as required by section 99B.14A,
subsection 1.
(3) The transfer of net proceeds derived from the conduct
of bingo to a bingo savings account pending disbursement for
educational, civic, public, charitable, patriotic, or religious
uses.
(4) To withdraw initial or emergency funds deposited under
paragraph "a".
(5) To pay prizes if the qualified organization decides to
pay prizes by check rather than cash.
c. Except as permitted by paragraph "a", gross receipts
derived from the conduct of bingo shall not be commingled with
other funds of the licensed qualified organization. Except as
permitted by paragraph "b", subparagraphs (3) and (4), gross
receipts shall not be transferred to another account maintained
by the licensed qualified organization.
Sec. 37. NEW SECTION. 99B.24 Raffles.
1. General provisions. A licensed qualified organization
may conduct a raffle as permitted by the applicable license and
in accordance with the following requirements:
a. The winner of a raffle shall not be required to be
present to win.
b. If the winner is not present to win, notification to the
winner shall be made as soon as practical.
c. A cash or merchandise prize may be awarded in a raffle.
If a merchandise prize is awarded, the actual retail value of
the prize, or if the prize consists of more than one item,
unit, or part, the aggregate retail value of all items, units,
or parts, shall not exceed the maximum value allowed for that
raffle.
d. Calendar raffles and build=up or pyramid raffles are
prohibited.
e. If a raffle is conducted at a fair, the licensed
qualified organization shall receive written permission from
the sponsor of the fair to conduct the raffle.
f. A licensed qualified organization shall, regardless of
the number of licenses issued, only conduct one large raffle
per calendar year. However, a licensed qualified organization
issued a one=year qualified organization raffle license may
conduct up to eight large raffles with each large raffle
conducted in a different county during the one=year period.
2. Very large raffles. A licensed qualified organization
may conduct one very large raffle per calendar year subject to
the provisions of this subsection.
a. The licensed qualified organization shall submit a very
large raffle license application and a fee of one hundred
dollars to the department and be issued a license.
b. The licensed qualified organization shall prominently
display the license at the drawing area of the raffle.
c. If the raffle prize is real property, the real property
shall be acquired by gift or donation or shall have been owned
by the licensed qualified organization for a period of at least
five years.
d. The department shall conduct a special audit of a
very large raffle to verify compliance with the applicable
requirements of this chapter concerning raffles and very large
raffles.
e. The licensed qualified organization shall submit to the
department within sixty days of the very large raffle drawing a
cumulative report for the raffle on a form determined by the
department and one percent of the gross receipts from the very
large raffle. The one percent of the gross receipts shall be
retained by the department to pay for the cost of the special
audit.
3. Very small raffles. A qualified organization may conduct
one very small raffle per calendar year without obtaining a
qualified organization license. A qualified organization
conducting a very small raffle as authorized by this subsection
shall comply with the requirements for conducting a raffle
by a licensed qualified organization, including payment of
applicable sales tax. However, a qualified organization
holding only one very small raffle per calendar year shall be
exempt from the reporting requirements in section 99B.16A.
Sec. 38. NEW SECTION. 99B.25 Electronic raffles.
1. A qualified organization with a two=year qualified
organization license may conduct a raffle using an electronic
raffle system, if the qualified organization complies with the
requirements of section 99B.24 and this section.
2. The licensed qualified organization shall only use
an electronic raffle system purchased from a manufacturer or
distributor licensed pursuant to section 99B.7A and certified
by an entity approved by the department. The electronic raffle
system may include stationary and portable or wireless raffle
sales units.
3. A licensed qualified organization shall hold only one
raffle using an electronic raffle system per calendar day. A
licensed qualified organization shall not hold a very large
raffle using an electronic raffle system and may hold only one
large raffle using an electronic raffle system per calendar
year. A large raffle conducted using an electronic raffle
system counts toward the limit of one large raffle per calendar
year under section 99B.24, subsection 1, paragraph "f".
4. Except for a large raffle conducted using an electronic
raffle system, the prize for an electronic raffle shall be
limited to the amount allowed for a small raffle.
5. Entries for a raffle using an electronic raffle system
shall not be preprinted and shall be provided to the purchaser
at the time of sale.
6. The electronic raffle receipt shall contain the
following information:
a. The name of the licensed qualified organization.
b. The license identification number of the qualified
organization.
c. The location, date, and time of the corresponding raffle
drawing.
d. The unique printed entry number, or multiple entry
numbers, of the raffle entry.
e. The price of the raffle entry.
f. An explanation of the prize to be awarded.
g. The statement, "Need not be present to win", and the
contact information, including name, telephone number, and
electronic mail address, of the individual from the qualified
organization responsible for prize disbursements.
h. The date by which the prize shall be claimed which shall
be no fewer than fourteen days following the drawing.
7. Each electronic raffle entry shall reflect a single
unique printed entry number on the entry.
8. The licensed qualified organization shall use a manual
draw procedure for the electronic raffle which ensures a draw
number is randomly selected as a winner from the entries sold.
a. The winning entry shall be verified as a sold and valid
entry prior to awarding the prize.
b. The drawing of the winning entry shall be done in such
manner as to allow the purchasers to observe the drawing.
9. If the prize is not claimed, the licensed qualified
organization shall donate the unclaimed prize to an
educational, civic, public, charitable, patriotic, or religious
use.
10. The department may determine any other requirements for
conducting an electronic raffle by rule.
Sec. 39. NEW SECTION. 99B.26 Game nights.
1. A licensed qualified organization may conduct one game
night per calendar year subject to the provisions of this
section.
2. A licensed qualified organization conducting a game
night may do any of the following during the game night:
a. Charge an entrance fee or a fee to participate in the
games.
b. Award cash or merchandise prizes in any games of
skill, games of chance, casino=style games, or card games in
an aggregate amount not to exceed ten thousand dollars and
no participant shall win more than a total of five thousand
dollars.
c. Allow participants at the game night that do not have
a bona fide social relationship with the sponsor of the game
night.
d. Allow participants to wager their own funds and pay an
entrance or other fee for participation, but participants shall
not be allowed to expend more than a total of two hundred fifty
dollars for all fees and wagers.
3. Except as provided by section 99B.62, a person or
organization that has not been issued a qualified organization
license under section 99B.12B shall not be authorized to
conduct a game night as authorized by this section.
Sec. 40. NEW SECTION. 99B.41 Definitions.
For purposes of this subchapter, unless the context
otherwise requires:
1. "Public place" means an indoor or outdoor area, whether
privately or publicly owned, to which the public has access
by right or by invitation, expressed or implied, whether by
payment of money or not, but not a place when used exclusively
by one or more individuals for a private gathering or other
personal purpose.
2. "Social gambling" means an activity in which social games
are played between individuals for any sum of money or other
property of any value.
3. "Social games" or "social game" means card and parlor
games, including but not limited to poker, pinochle, pitch, gin
rummy, bridge, euchre, hearts, cribbage, dominoes, checkers,
chess, backgammon, pool, and darts. "Social games" do not
include casino=style games, except poker.
4. "Sports betting pool" or "pool" means a game in which
the participants select a square on a grid corresponding to
numbers on two intersecting sides of the grid and winners
are determined by whether the square selected corresponds to
numbers relating to an athletic event in the manner prescribed
by the rules of the game.
Sec. 41. NEW SECTION. 99B.42 Social gambling general
requirements.
1. Social gambling is lawful under section 99B.6, 99B.9, or
99B.12, when all of the following requirements are met:
a. The gambling occurs between two or more people who are
together for purposes other than social gambling. A social
relationship must exist beyond that apparent in the gambling
situation.
b. The gambling shall not take place on a gaming floor,
as defined in section 99F.1, licensed by the state racing and
gaming commission created in section 99D.5.
c. Concealed numbers or conversion charts are not used to
play any game.
d. A game is not adapted with any control device to permit
manipulation of the game by the operator in order to prevent a
player from winning or to predetermine who the winner will be.
e. The object of the game is attainable and possible to
perform under the rules stated from the playing position of the
player.
f. The game must be conducted in a fair and honest manner.
g. A person shall not receive or have any fixed or
contingent right to receive, directly or indirectly, any amount
wagered or bet or any portion of amounts wagered or bet, except
an amount which the person wins as a participant while playing
on the same basis as every other participant.
h. A cover charge, participation charge, or other charge
shall not be imposed upon a person for the privilege of
participating in or observing the social gambling, and a
rebate, discount, credit, or other method shall not be used
to discriminate between the charge for the sale of goods
or services to participants in the social gambling and the
charge for the sale of goods or services to nonparticipants.
Satisfaction of an obligation into which a member of an
organization enters to pay at regular periodic intervals a
sum fixed by that organization for the maintenance of that
organization is not a charge which is prohibited by this
paragraph.
i. A participant shall not win or lose more than a total
of two hundred dollars or equivalent consideration in one or
more games permitted by this subchapter at any time during any
period of twenty=four consecutive hours or over that entire
period.
j. A participant is not participating as an agent of another
person.
k. A representative of the department or a law enforcement
agency is immediately admitted, upon request, to the premises
with or without advance notice.
l. A person shall not engage in bookmaking on the premises.
m. A person shall not participate in any wager, bet, or
pool which relates to an athletic event or contest and which
is authorized or sponsored by one or more schools, educational
institutions, or interscholastic athletic organizations, if
the person is a coach, official, player, or contestant in the
athletic event or contest.
2. The social gambling licensee is strictly accountable for
compliance with this section. Proof of an act constituting
a violation is grounds for revocation of the license issued
pursuant to section 99B.6 or 99B.9 if the licensee permitted
the violation to occur when the licensee knew or had reasonable
cause to know of the act constituting the violation.
3. A participant in a social game or pool which is not in
compliance with this section shall only be subject to a penalty
under section 99B.15 if the participant has knowledge of or
reason to know the facts constituting the violation.
4. The social gambling licensee, and every agent of the
licensee who is required by the licensee to exercise control
over the use of the premises, who knowingly permits or engages
in an act or omission which constitutes a violation of this
subchapter is subject to a penalty under section 99B.15. A
licensee has knowledge of an act or omission if any agent of
the licensee has knowledge of the act or omission.
Sec. 42. NEW SECTION. 99B.51 Definitions.
As used in this subchapter, unless the context otherwise
requires:
1. "Distributor" means a person who owns an electrical or
mechanical amusement device registered as provided in section
99B.53 that is offered for use at more than a single location
or premise.
2. "Manufacturer" means a person who originally produces,
or purchases an originally produced amusement device or
an originally produced motherboard that will be installed
into, an amusement device required to be registered under
this subchapter for the purposes of reselling such device or
motherboard.
3. "Owner" means a person who owns an operable amusement
device required to be registered under section 99B.53 at no
more than a single location or premise.
Sec. 43. NEW SECTION. 99B.52 Electrical or mechanical
amusement devices.
1. A person may own, possess, and offer for use at any
location an electrical or mechanical amusement device, except
for an amusement device required to be registered pursuant to
section 99B.53. If the provisions of this section and other
applicable provisions of this subchapter are complied with, the
use of an electrical or mechanical amusement device shall not
be deemed gambling. All electrical or mechanical amusement
devices shall comply with this section.
2. A prize of merchandise not exceeding fifty dollars in
value shall be awarded for use of an electrical or mechanical
amusement device. An electrical or mechanical amusement device
may be designed or adapted to award a prize of one or more
free games or portions of games without payment of additional
consideration by the participant.
3. A prize of cash shall not be awarded for use of an
electrical or mechanical amusement device.
4. An amusement device shall not be designed or adapted to
cause or to enable a person to cause the release of free games
or portions of games when designated as a potential award for
use of the device, and shall not contain any meter or other
measurement device for recording the number of free games or
portions of games which are awarded.
5. An amusement device shall not be designed or adapted to
enable a person using the device to increase the chances of
winning free games or portions of games by paying more than is
ordinarily required to play the game.
6. An award given for the use of an amusement device shall
only be redeemed on the premises where the device is located
and only for merchandise sold in the normal course of business
for the premises.
7. The department may determine any other requirements
by rule. Rules adopted pursuant to this section shall be
formulated in consultation with affected state agencies and
industry and consumer groups.
Sec. 44. NEW SECTION. 99B.53 Electrical or mechanical
amusement devices == registration required.
1. In addition to the requirements of section 99B.52,
an electrical or mechanical amusement device in operation
or distributed in this state that awards a prize where the
outcome is not primarily determined by skill or knowledge of
the operator shall be registered by the department as provided
in this section.
2. Except as provided in subsection 3, an electrical or
mechanical amusement device requiring registration may be
located on premises for which a class "A", class "B", class
"C", special class "C", or class "D" liquor control license has
been issued pursuant to chapter 123.
3. a. An electrical or mechanical amusement device
requiring registration may be located on premises for which a
class "B" or class "C" beer permit has been issued pursuant to
chapter 123, but the department shall not initially register
an electrical or mechanical amusement device to an owner or
distributor for a location for which a class "B" or class "C"
beer permit has been issued pursuant to chapter 123 on or after
April 28, 2004.
b. A distributor that owns an amusement device at a location
for which only a class "B" or class "C" beer permit has been
issued pursuant to chapter 123 shall not relocate an amusement
device registered as provided in this section to a location
other than a location for which a class "A", class "B", class
"C", special class "C", or class "D" liquor license has been
issued and shall not transfer, assign, sell, or lease an
amusement device registered as provided in this section to
another person for which only a class "B" or class "C" beer
permit has been issued pursuant to chapter 123 after April 28,
2004.
c. If ownership of the location changes, the class "B"
or class "C" beer permit does not lapse, and the device is
not removed from the location, the device may remain at the
location.
4. An electrical or mechanical amusement device required to
be registered and at a location for which only a class "B" or
class "C" beer permit has been issued pursuant to chapter 123
shall include on the device a security mechanism which prevents
the device from being operated by a person until action is
taken by the owner or owner's designee to allow the person to
operate the device.
5. No more than four electrical or mechanical amusement
devices registered as provided in this section shall be
permitted or offered for use in any single location or premises
meeting the requirements of this section.
6. The total number of electrical or mechanical amusement
devices registered by the department under this section shall
not exceed six thousand nine hundred twenty=eight.
7. Each person owning an electrical or mechanical amusement
device in this state shall submit annually an application
form designated by the department that shall contain the
information required by the department by rule and a fee of
twenty=five dollars for each device required to be registered.
If approved, the department shall issue an annual registration
tag.
8. A new amusement device registration tag shall be
obtained if electronic or mechanical components have been
adapted, altered, or replaced and such adaptation, alteration,
or replacement changes the operational characteristics of
the amusement device including but not limited to the game
being changed. The amusement device shall not be placed
into operation prior to obtaining a new amusement device
registration tag.
9. An electrical or mechanical amusement device required
to be registered under this section shall only be leased or
purchased from a manufacturer or distributor registered with
the department under section 99B.10A.
10. A person owning or leasing an electrical or mechanical
amusement device required to be registered by this section
shall display the registration tag as required by rules adopted
by the department.
11. A person owning or leasing an electrical or mechanical
amusement device required to be registered by this section
shall not allow the electrical or mechanical amusement device
to be operated or made available for operation with an expired
registration.
12. A person or employee of a person owning or leasing
an electrical or mechanical amusement device required to be
registered by this section shall not advertise or promote the
availability of the device to the public as anything other than
an electrical or mechanical amusement device pursuant to rules
adopted by the department.
13. A person owning or leasing an electrical or mechanical
amusement device required to be registered by this section
shall not relocate and place into operation an amusement device
in any location other than a location which has been issued
an appropriate liquor control license in good standing and to
which the device has been appropriately registered with the
department.
14. A counting mechanism which establishes the volume of
business of the electrical or mechanical amusement device shall
be included on each device required to be registered by this
section. The department and the department of public safety
shall have immediate access to the information provided by the
counting mechanism.
15. An electrical or mechanical amusement device required
to be registered as provided by this section shall not be a
gambling device, as defined in section 725.9, or a device that
plays poker, blackjack, or keno.
Sec. 45. NEW SECTION. 99B.54 Electrical or mechanical
amusement devices == criminal penalties.
1. A person who violates any provision of section 99B.52 or
99B.53, except as specified in subsection 2, commits a serious
misdemeanor.
2. A person who violates any provision of section 99B.52,
subsection 2 or 6; or section 99B.53, subsection 4, 8, 10, 11,
12, or 13, shall be subject to the following:
a. For a first offense under an applicable subsection, the
person commits a simple misdemeanor, punishable as a scheduled
violation pursuant to section 805.8C, subsection 4, paragraph
"b".
b. For a second or subsequent offense under the same
applicable subsection, the person commits a serious
misdemeanor.
3. Notwithstanding any provision of section 99B.52 or
99B.53 to the contrary, the following shall apply:
a. An individual other than an owner or distributor of an
amusement device may operate an amusement device, whether or
not the amusement device is owned, possessed, or offered for
use in compliance with section 99B.52 or 99B.53.
b. A distributor shall not be liable for a violation of
section 99B.52 or 99B.53 unless the distributor or an employee
of the distributor intentionally violates a provision of
section 99B.52 or 99B.53.
Sec. 46. NEW SECTION. 99B.62 Game nights == licensing
exceptions.
1. A person other than a qualified organization may lawfully
conduct a game night without a license, and may award cash or
merchandise prizes, under the following conditions:
a. A bona fide social, employment, or trade or professional
association relationship exists between the sponsors and the
participants.
b. The participants pay no consideration of any nature,
either directly or indirectly, to participate in the games.
c. All money, play money, or other items of no intrinsic
value which may be wagered are provided to the participant
free, and the sponsor conducting the game receives no
consideration, either directly or indirectly, other than
goodwill.
d. The games may be conducted at any location, except at a
fair or a location for which a license is required pursuant to
section 99B.3.
e. During the entire time activities permitted by this
subsection are being engaged in, no other gambling is engaged
in at the same location.
2. A person or an organization may sponsor one or more game
nights using play money for participation by students without
the person or organization obtaining a license otherwise
required by this chapter if the person or organization obtains
prior approval for the game night from the board of directors
of the accredited public school or the authorities in charge of
the nonpublic school accredited by the state board of education
for whose students the game night is to be held.
3. A gambling device intended for use or used as provided in
this section is exempt from the provisions of section 725.9,
subsection 2.
Sec. 47. REPEAL. Sections 99B.2, 99B.4, 99B.5, 99B.7,
99B.8, 99B.9A, 99B.10, 99B.16, and 99B.18, Code 2015, are
repealed.
Sec. 48. LICENSED QUALIFIED ORGANIZATION == INITIAL
ANNUAL REPORT. Notwithstanding any provision of section
99B.16A, subsection 3, to the contrary, the first annual
report submitted by a licensed qualified organization to the
department of inspections and appeals after July 1, 2015, shall
be submitted by January 31, 2017, and shall cover the period of
July 1, 2015, through December 31, 2016.
DIVISION II
COORDINATING AMENDMENTS
Sec. 49. Section 99.1A, unnumbered paragraph 2, Code 2015,
is amended to read as follows:
The provisions of this section do not apply to games of
skill, games of chance, or raffles social and charitable
gambling conducted pursuant to chapter 99B or to devices lawful
under section 99B.10 99B.52 or 99B.53.
Sec. 50. Section 99D.8, unnumbered paragraph 1, Code 2015,
is amended to read as follows:
A qualifying organization, as defined in section
513(d)(2)(C) of the Internal Revenue Code, as defined in
section 422.3, exempt from federal income taxation under
sections 501(c)(3), 501(c)(4), or 501(c)(5) of the Internal
Revenue Code or a nonprofit corporation organized under the
laws of this state, whether or not it is exempt from federal
income taxation, which is organized to promote those purposes
enumerated in section 99B.7, subsection 3, paragraph "b"
distribute funds for educational, civic, public, charitable,
patriotic, or religious uses, as defined in section 99B.1,
or which regularly conducts an agricultural and educational
fair or exposition for the promotion of the horse, dog, or
other livestock breeding industries of the state, or an agency,
instrumentality, or political subdivision of the state, may
apply to the commission for a license to conduct horse or dog
racing. The application shall be filed with the administrator
of the commission at least sixty days before the first day
of the horse race or dog race meeting which the organization
proposes to conduct, shall specify the day or days when and
the exact location where it proposes to conduct racing, and
shall be in a form and contain information as the commission
prescribes.
Sec. 51. Section 99F.5, subsection 1, Code 2015, is amended
to read as follows:
1. A qualified sponsoring organization may apply to the
commission for a license to conduct gambling games on an
excursion gambling boat or gambling structure as provided in
this chapter. A person may apply to the commission for a
license to operate an excursion gambling boat. An operating
agreement entered into on or after May 6, 2004, between
a qualified sponsoring organization and an operator of an
excursion gambling boat or gambling structure shall provide for
a minimum distribution by the qualified sponsoring organization
for educational, civic, public, charitable, patriotic, or
religious uses as defined in section 99B.7, subsection 3,
paragraph "b" 99B.1, that averages at least three percent
of the adjusted gross receipts for each license year. The
application shall be filed with the administrator of the
commission at least ninety days before the first day of the
next excursion season as determined by the commission, shall
identify the excursion gambling boat upon which gambling games
will be authorized, shall specify the exact location where
the excursion gambling boat will be docked, and shall be in
a form and contain information as the commission prescribes.
The minimum capacity of an excursion gambling boat or gambling
structure is two hundred fifty persons.
Sec. 52. Section 99F.6, subsection 4, paragraph a,
subparagraph (2), Code 2015, is amended to read as follows:
(2) A qualified sponsoring organization licensed to operate
gambling games under this chapter shall distribute the receipts
of all gambling games, less reasonable expenses, charges,
taxes, fees, and deductions allowed under this chapter, as
winnings to players or participants or shall distribute the
receipts for educational, civic, public, charitable, patriotic,
or religious uses as defined in section 99B.7, subsection 3,
paragraph "b" 99B.1. However, a licensee to conduct gambling
games under this chapter shall, unless an operating agreement
for an excursion gambling boat otherwise provides, distribute
at least three percent of the adjusted gross receipts for
each license year for educational, civic, public, charitable,
patriotic, or religious uses as defined in section 99B.7,
subsection 3, paragraph "b" 99B.1. However, if a licensee
who is also licensed to conduct pari=mutuel wagering at a
horse racetrack has unpaid debt from the pari=mutuel racetrack
operations, the first receipts of the gambling games operated
within the racetrack enclosure less reasonable operating
expenses, taxes, and fees allowed under this chapter shall be
first used to pay the annual indebtedness.
Sec. 53. Section 331.304, subsection 2, Code 2015, is
amended by striking the subsection.
Sec. 54. Section 423.3, subsection 62, Code 2015, is amended
to read as follows:
62. The sales price from the sale of raffle tickets for a
raffle licensed and conducted at a fair pursuant to section
99B.5 99B.24.
Sec. 55. Section 805.8C, subsection 4, Code 2015, is amended
to read as follows:
4. Electrical and or mechanical amusement device violations.
a. For violations of legal age for operating an electrical
and or mechanical amusement device required to be registered as
provided in section 99B.10, subsection 1, paragraph "f" 99B.53,
pursuant to section 99B.10C, subsection 1, the scheduled fine
is two hundred fifty dollars. Failure to pay the fine by a
person under the age of eighteen shall not result in the person
being detained in a secure facility.
b. For first offense violations concerning electrical and
or mechanical amusement devices as provided in section 99B.10,
subsection 3 99B.54, subsection 2, the scheduled fine is two
hundred fifty dollars.
DIVISION III
CODE EDITOR DIRECTIVES
Sec. 56. CODE EDITOR DIRECTIVE.
1. The Code editor is directed to make the following
transfers:
a. Section 99B.3 to section 99B.31.
b. Section 99B.5A to section 99B.22.
c. Section 99B.6 to section 99B.43.
d. Section 99B.7A to section 99B.32.
e. Section 99B.7B to section 99B.27.
f. Section 99B.9 to section 99B.44.
g. Section 99B.10A to section 99B.56.
h. Section 99B.10B to section 99B.55.
i. Section 99B.10C to section 99B.57.
j. Section 99B.10D to section 99B.58.
k. Section 99B.11 to section 99B.61.
l. Section 99B.11A, as enacted in this Act, to section
99B.11.
m. Section 99B.12 to section 99B.45.
n. Section 99B.12A to section 99B.23.
o. Section 99B.12B, as enacted in this Act, to section
99B.12.
p. Section 99B.13 to section 99B.2.
q. Section 99B.13A, as enacted in this Act, to section
99B.13.
r. Section 99B.14 to section 99B.3.
s. Section 99B.14A, as enacted in this Act, to section
99B.14.
t. Section 99B.15 to section 99B.4.
u. Section 99B.15A, as enacted in this Act, to section
99B.15.
v. Section 99B.16A, as enacted in this Act, to section
99B.16.
w. Section 99B.17 to section 99B.5.
x. Section 99B.19 to section 99B.6.
y. Section 99B.20 to section 99B.7.
z. Section 99B.21 to section 99B.8.
aa. Section 99B.21A, as enacted in this Act, to section
99B.21.
2. The Code editor is directed to create seven new
subchapters in chapter 99B as follows:
a. Subchapter I shall be entitled "general provisions" and
include sections 99B.1 through 99B.10.
b. Subchapter II shall be entitled "qualified
organizations" and include sections 99B.11 through 99B.20.
c. Subchapter III shall be entitled "charitable gambling"
and include sections 99B.21 through 99B.30.
d. Subchapter IV shall be entitled "other activities
requiring licensure" and include sections 99B.31 through
99B.40.
e. Subchapter V shall be entitled "social gambling" and
include sections 99B.41 through 99B.50.
f. Subchapter VI shall be entitled "electrical or
mechanical amusement devices" and include sections 99B.51
through 99B.60.
g. Subchapter VII shall be entitled "activities not
requiring licensure" and include sections 99B.61 and 99B.62.
3. The Code editor may modify subchapter titles if necessary
and is directed to correct internal references in the Code as
necessary due to enactment of this section.
PAM JOCHUM
President of the Senate
KRAIG PAULSEN
Speaker of the House
I hereby certify that this bill originated in the Senate and
is known as Senate File 482, Eighty=sixth General Assembly.
MICHAEL E. MARSHALL
Secretary of the Senate
Approved , 2015
TERRY E. BRANSTAD
Governor
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