House File 642 - Introduced
HOUSE FILE
BY COMMITTEE ON WAYS AND
MEANS
(SUCCESSOR TO HF 513)
(SUCCESSOR TO HSB 148)
A BILL FOR
1 An Act concerning social and charitable gambling and making
2 penalties applicable.
3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
TLSB 1314HZ (2) 86
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PAG LIN
1 1 DIVISION I
1 2 SOCIAL AND CHARITABLE GAMBLING
1 3 Section 1. Section 99B.1, subsection 1, Code 2015, is
1 4 amended by striking the subsection and inserting in lieu
1 5 thereof the following:
1 6 1. "Amusement concession" means a game of skill or
1 7 game of chance with an instant win possibility where, if
1 8 the participant completes a task, the participant wins a
1 9 prize. "Amusement concession" includes but is not limited to
1 10 carnival=style games that are conducted by a person for profit.
1 11 "Amusement concession" does not include casino=style games or
1 12 amusement devices required to be registered pursuant to section
1 13 99B.53.
1 14 Sec. 2. Section 99B.1, subsections 2, 3, 5, 6, 15, 16, 17,
1 15 20, 21, and 26, Code 2015, are amended to read as follows:
1 16 2. "Amusement device" means an electrical or mechanical
1 17 device possessed and used in accordance with section 99B.10
1 18 this chapter. When possessed and used in accordance with
1 19 that section this chapter, an amusement device is not a game of
1 20 skill or game of chance, and is not a gambling device.
1 21 3. "Applicant" means an individual or an organization
1 22 applying for a license under this chapter.
1 23 5. "Bingo" means a game, whether known as bingo or any other
1 24 name, in which each participant uses one or more cards each
1 25 of which is marked off into spaces arranged in horizontal and
1 26 vertical rows of spaces, with each space being designated by
1 27 number, letter, symbol, or picture, or combination of numbers,
1 28 and letters, no symbols, or pictures. No two cards being shall
1 29 be identical, with. In the game of bingo, players covering
1 30 shall cover spaces on the card or cards as the operator of the
1 31 game announces to the players the number, letter, symbol, or
1 32 picture, or combination of numbers, and letters, symbols, or
1 33 pictures, appearing on an object selected by chance, either
1 34 manually or mechanically, from a receptacle in which have
1 35 been placed objects bearing numbers, letters, symbols, or
2 1 pictures, or combinations of numbers, and letters, symbols,
2 2 or pictures corresponding to the system used for designating
2 3 the spaces, with the. The winner of each game being is the
2 4 player or players first properly covering a predetermined and
2 5 announced pattern of spaces on a card being used by the player
2 6 or players. Each determination of a winner by the method
2 7 described in the preceding sentence this subsection is a single
2 8 bingo game at any bingo occasion.
2 9 6. "Bingo occasion" means a single gathering or session
2 10 at which successive a series of bingo games are is played. A
2 11 bingo occasion commences begins when the operator of the a
2 12 bingo game begins to announce the selects an object with a
2 13 number, letter, symbol, or picture, or combination of numbers,
2 14 or letters, symbols, or pictures through which the winner of a
2 15 single the first bingo game in a series of bingo games will be
2 16 determined. A bingo occasion ends when at least one hour has
2 17 elapsed since a bingo game is played or when an announcement by
2 18 the operator of the bingo game is made that the bingo occasion
2 19 is over, whichever first occurs.
2 20 15. "Game of chance" means a game whereby the result is
2 21 determined by chance and the player in order to win aligns
2 22 completes activities, such as aligning objects or balls in a
2 23 prescribed pattern or order or makes certain color patterns
2 24 appear and. "Game of chance" specifically includes but is not
2 25 limited to the game defined as bingo. Game of chance "Game of
2 26 chance" does not include a slot machine or amusement device.
2 27 16. "Game of skill" means a game whereby the result is
2 28 determined by the player player's ability to do a task, such as
2 29 directing or throwing objects to designated areas or targets,
2 30 or by maneuvering water or an object into a designated area, or
2 31 by maneuvering a dragline device to pick up particular items,
2 32 or by shooting a gun or rifle.
2 33 17. "Gross receipts" means the total revenue received from
2 34 the sale of rights to participate in a game of skill, game of
2 35 chance, bingo, or raffle and admission fees or charges.
3 1 20. "Merchandise" means goods or services that are bought
3 2 and sold in the regular course of business. "Merchandise"
3 3 includes lottery tickets or shares sold or authorized under
3 4 chapter 99G. The value of the lottery ticket or share is the
3 5 price of the lottery ticket or share as established by the
3 6 Iowa lottery authority pursuant to chapter 99G. "Merchandise"
3 7 includes a gift card if the gift card is not redeemable for
3 8 cash.
3 9 21. "Net receipts" means gross receipts less amounts awarded
3 10 as prizes and less state and local sales tax paid upon the
3 11 gross receipts. Reasonable expenses, charges, fees, taxes
3 12 other than the state and local sales tax, and deductions
3 13 allowed by the department shall not exceed twenty=five percent
3 14 of net receipts.
3 15 26. "Raffle" means a lottery in which each participant
3 16 buys a ticket an entry for a chance at a prize with the winner
3 17 determined by a random method and the winner is not required to
3 18 be present to win. "Raffle" does not include a slot machine.
3 19 Sec. 3. Section 99B.1, subsections 4, 10, 12, 13, 18, 19,
3 20 23, 24, 27, and 28, Code 2015, are amended by striking the
3 21 subsections.
3 22 Sec. 4. Section 99B.1, subsection 8, Code 2015, is amended
3 23 by striking the subsection and inserting in lieu thereof the
3 24 following:
3 25 8. "Bookmaking" means the determining of odds and receipt
3 26 and paying off of bets by an individual or publicly or
3 27 privately owned enterprise not present when the wager or bet
3 28 was undertaken.
3 29 Sec. 5. Section 99B.1, Code 2015, is amended by adding the
3 30 following new subsections:
3 31 NEW SUBSECTION. 8A. "Build=up or pyramid" means a raffle
3 32 or a game in which a prize must be returned in order to play
3 33 another game or to be eligible for another bigger prize, a game
3 34 in which a prize must be forfeited if a later game is lost, or a
3 35 raffle which is multi=step and requires the participant to win
4 1 at multiple steps to win the grand prize.
4 2 NEW SUBSECTION. 8B. "Calendar raffle" means a raffle where
4 3 a single entry is entered in one raffle where winners will be
4 4 selected over multiple dates.
4 5 NEW SUBSECTION. 8C. "Casino=style games" means any house
4 6 banking game, including but not limited to casino=style card
4 7 games such as poker, baccarat, chemin de fer, blackjack, and
4 8 pai gow, and casino games such as roulette, craps, and keno.
4 9 "Casino=style games" does not include a slot machine.
4 10 NEW SUBSECTION. 8D. "Charitable uses" includes uses
4 11 benefiting a definite number of persons who are the victims of
4 12 loss of home or household possessions through explosion, fire,
4 13 flood, or storm when the loss is uncompensated by insurance,
4 14 and uses benefiting a definite number of persons suffering from
4 15 a seriously disabling disease or injury, causing severe loss of
4 16 income or incurring extraordinary medical expense when the loss
4 17 is uncompensated by insurance.
4 18 NEW SUBSECTION. 12A. "Educational, civic, public,
4 19 charitable, patriotic, or religious uses" includes uses
4 20 benefiting a society for the prevention of cruelty to animals
4 21 or animal rescue league; uses benefiting an indefinite
4 22 number of persons either by bringing them under the influence
4 23 of education or religion or relieving them from disease,
4 24 suffering, or constraint, or by erecting or maintaining
4 25 public buildings or works, or otherwise lessening the burden
4 26 of government; and uses benefiting any bona fide nationally
4 27 chartered fraternal or military veterans' corporation or
4 28 organization which operates in Iowa a clubroom, post, dining
4 29 room, or dance hall, but does not include the erection,
4 30 acquisition, improvement, maintenance, or repair of real,
4 31 personal, or mixed property unless it is used for one or more
4 32 of the uses described in this subsection.
4 33 NEW SUBSECTION. 14A. "Gambling" means any activity where a
4 34 person risks something of value or other consideration for a
4 35 chance to win a prize.
5 1 NEW SUBSECTION. 14B. "Game night" means an event at
5 2 which casino=style games may be conducted, in addition to
5 3 games of skill and games of chance, within one consecutive
5 4 twenty=four=hour period.
5 5 NEW SUBSECTION. 17A. "Licensed qualified organization"
5 6 means a qualified organization that is issued a license under
5 7 this chapter and that complies with the requirements for a
5 8 qualified organization issued a license under this chapter.
5 9 NEW SUBSECTION. 24A. "Public uses" specifically includes
5 10 dedication of net receipts to political parties as defined in
5 11 section 43.2.
5 12 Sec. 6. Section 99B.1, subsection 25, Code 2015, is amended
5 13 by striking the subsection and inserting in lieu thereof the
5 14 following:
5 15 25. "Qualified organization" means an organization that has
5 16 an active membership of not less than twelve persons, does not
5 17 have a self=perpetuating governing body and officers, and meets
5 18 any of the following requirements:
5 19 a. Is exempt from federal income taxes under section
5 20 501(c)(3), 501(c)(4), 501(c)(5), 501(c)(6), 501(c)(7),
5 21 501(c)(8), 501(c)(10), or 501(c)(19) of the Internal Revenue
5 22 Code as defined in section 422.3.
5 23 b. Is an agency or instrumentality of the United States
5 24 government, this state, or a political subdivision of this
5 25 state.
5 26 c. Is a parent=teacher organization or booster club that
5 27 is recognized as a fund=raiser and supporter for a school
5 28 district organized pursuant to chapter 274 or for a school
5 29 within the school district, in a notarized letter signed by the
5 30 president of the board of directors, the superintendent of the
5 31 school district, or a principal of a school within that school
5 32 district.
5 33 d. Is a political party, as defined in section 43.2, or a
5 34 nonparty political organization that has qualified to place
5 35 a candidate as its nominee for statewide office pursuant to
6 1 chapter 44, or to a candidate's committee as defined in section
6 2 68A.102.
6 3 Sec. 7. Section 99B.3, Code 2015, is amended to read as
6 4 follows:
6 5 99B.3 Amusement concessions.
6 6 1. A game of skill or game of chance is lawful when
6 7 conducted by a person at an amusement concession, but only
6 8 A person may conduct an amusement concession if all of the
6 9 following are complied with conditions are met:
6 10 a. The location where the game is conducted by the person
6 11 has been authorized as provided in section 99B.4.
6 12 b. The person conducting the game amusement concession has
6 13 submitted a license application and a fee of fifty dollars for
6 14 each game amusement concession, and has been issued a license
6 15 for the game amusement concession, and prominently displays the
6 16 license at the playing area of the game amusement concession.
6 17 A license is valid for a period of one year from the date of
6 18 issue.
6 19 c. Gambling other than the licensed game is not conducted or
6 20 engaged in at the amusement concession.
6 21 d. b. The game is rules of the amusement concession are
6 22 prominently posted and the visible from all playing positions.
6 23 c. The cost to play the game a single amusement concession
6 24 does not exceed three five dollars.
6 25 e. d. A prize is not displayed which cannot be won.
6 26 f. e. Cash prizes are not awarded and merchandise prizes
6 27 are not repurchased.
6 28 g. f. The game amusement concession is not operated on a
6 29 build=up or pyramid basis.
6 30 g. A pet, as defined in section 717E.1, is not awarded.
6 31 h. The actual retail value of any prize does not exceed
6 32 fifty one hundred dollars. If a prize consists of more than
6 33 one item, unit, or part, the aggregate retail value of all
6 34 items, units, or parts shall not exceed fifty one hundred
6 35 dollars.
7 1 i. Merchandise prizes are not repurchased from the
7 2 participants. However, a participant may have the option, at
7 3 no additional cost to the participant, of trading multiple
7 4 smaller prizes for a single larger prize.
7 5 j. Concealed numbers or conversion charts are not used to
7 6 play the game and the game amusement concession.
7 7 k. The amusement concession is not designed or adapted with
7 8 any control device to permit manipulation of the game amusement
7 9 concession by the operator in order to prevent a player from
7 10 winning or to predetermine who the winner will be, and the
7 11 object target, block or.
7 12 l. The object of the game amusement concession must be
7 13 attainable and possible to perform under the rules stated from
7 14 the all playing position of the player positions.
7 15 j. m. The game amusement concession is conducted in a fair
7 16 and honest manner.
7 17 2. It is lawful for an An individual other than a person
7 18 conducting the game to amusement concession may participate in
7 19 a game of skill or game of chance conducted at an amusement
7 20 concession, whether or not the amusement concession is
7 21 conducted in compliance with subsection 1 this section.
7 22 Sec. 8. Section 99B.5A, subsection 1, paragraph b, Code
7 23 2015, is amended to read as follows:
7 24 b. "Community group" means an Iowa nonprofit, tax=exempt
7 25 organization which is open to the general public and
7 26 established for the promotion and development of the arts,
7 27 history, culture, ethnicity, historic preservation, tourism,
7 28 economic development, festivals, or municipal libraries.
7 29 "Community group" does not include a school, college,
7 30 university, political party, labor union, state or federal
7 31 government agency, fraternal organization, church, convention
7 32 or association of churches, or organizations operated primarily
7 33 for religious purposes, or which are operated, supervised,
7 34 controlled, or principally supported by a church, convention,
7 35 or association of churches.
8 1 Sec. 9. Section 99B.5A, subsection 2, paragraphs a, c, and
8 2 e, Code 2015, are amended to read as follows:
8 3 a. Bingo is conducted by the sponsor of the fair or
8 4 community festival or a qualified organization licensed under
8 5 section 99B.7 99B.12B that has received permission from the
8 6 sponsor of the fair or community festival to conduct bingo.
8 7 c. The number of bingo occasions conducted by a licensee
8 8 under this section shall be limited to one for each day of the
8 9 duration of the fair or community festival.
8 10 e. Except as provided in this section, the provisions of
8 11 sections 99B.2 and 99B.7 this chapter related to bingo shall
8 12 apply.
8 13 Sec. 10. Section 99B.5A, subsection 4, Code 2015, is amended
8 14 to read as follows:
8 15 4. Bingo occasions held under a license under this section
8 16 shall not be counted in determining whether a qualified
8 17 organization has conducted more than fourteen fifteen bingo
8 18 occasions per month. In addition, bingo occasions held under
8 19 this license shall not be limited to four consecutive hours.
8 20 Sec. 11. Section 99B.6, Code 2015, is amended by striking
8 21 the section and inserting in lieu thereof the following:
8 22 99B.6 Social gambling in licensed alcohol establishments.
8 23 1. Social gambling is lawful on the premises of an
8 24 establishment for which a class "A", class "B", class "C",
8 25 special class "C", or class "D" liquor control license, or
8 26 class "B" beer permit has been issued pursuant to chapter 123
8 27 when, subject to the provisions of section 99B.42, all of the
8 28 following requirements are met:
8 29 a. The liquor control licensee or beer permittee has
8 30 submitted an application for a social gambling license and a
8 31 license fee of one hundred fifty dollars to the department, and
8 32 a license has been issued.
8 33 b. The license is prominently displayed on the premises of
8 34 the establishment.
8 35 c. The social gambling licensee or any agent or employee
9 1 of the licensee does not participate in, sponsor, conduct,
9 2 promote, or act as cashier or banker for any social gambling,
9 3 except as a participant while playing on the same basis as
9 4 every other participant.
9 5 d. A person under the age of twenty=one years shall not
9 6 participate in the social games. A social gambling licensee
9 7 or an agent or employee of the licensee who knowingly allows
9 8 a person under the age of twenty=one to participate in the
9 9 gambling prohibited by this section or a person who knowingly
9 10 participates in gambling with a person under the age of
9 11 twenty=one, is subject to a penalty under section 99B.15.
9 12 2. A liquor control licensee or beer permittee with a social
9 13 gambling license issued pursuant to this section may conduct
9 14 a sports betting pool if all of the requirements of this
9 15 subsection are met.
9 16 a. The pool shall be publicly displayed and the rules of
9 17 the pool, including the cost per participant and the amount or
9 18 amounts that will be won, shall be conspicuously displayed on
9 19 or near the pool.
9 20 b. A participant shall not wager more than five dollars in
9 21 the pool.
9 22 c. The maximum winnings awarded to all participants in the
9 23 pool shall not exceed five hundred dollars.
9 24 d. The provisions of section 99B.42, except section 99B.42,
9 25 subsection 1, paragraphs "a" and "h", are applicable to pools
9 26 conducted under this subsection.
9 27 e. The use of concealed numbers in the pool is permissible.
9 28 If the pool involves the use of concealed numbers, the numbers
9 29 shall be selected by a random method and no person shall be
9 30 aware of the numbers at the time wagers are made in the pool.
9 31 f. All moneys wagered in the pool shall be awarded as
9 32 winnings to participants.
9 33 3. An establishment issued a social gambling license under
9 34 this section that is required to obtain a new liquor license
9 35 or permit under chapter 123 due to a change in ownership shall
10 1 be required to obtain a new social gambling license under this
10 2 section to conduct social gambling.
10 3 Sec. 12. Section 99B.7A, Code 2015, is amended by striking
10 4 the section and inserting in lieu thereof the following:
10 5 99B.7A Manufacturers and distributors == bingo equipment and
10 6 supplies == electronic raffle systems == transfer or use.
10 7 1. As used in this section, unless the context otherwise
10 8 requires, "manufacturer or distributor" means a person engaged
10 9 in business in this state who originally produces, or purchases
10 10 from a business that originally produces, equipment or supplies
10 11 which are specifically used in the conduct of a bingo occasion
10 12 or an electronic raffle.
10 13 2. A person shall not engage in business in this state as a
10 14 manufacturer or distributor without first obtaining a license
10 15 from the department.
10 16 a. Upon receipt of an application and a fee of one thousand
10 17 dollars for a manufacturer or distributor license, the
10 18 department may issue an annual license.
10 19 b. A license may be renewed annually upon submission of an
10 20 application, payment of the annual license fee, and compliance
10 21 with this section and the rules adopted pursuant to this
10 22 section.
10 23 3. A licensed manufacturer or distributor may sell bingo
10 24 equipment or supplies or an electronic raffle system directly
10 25 to a licensed qualified organization.
10 26 4. A licensed qualified organization under this chapter
10 27 may dispose of, transfer, or sell excess bingo equipment or
10 28 supplies on a nonroutine basis to another licensed qualified
10 29 organization.
10 30 5. A licensed qualified organization shall not sublease,
10 31 rent, borrow, or otherwise use another qualified organization's
10 32 electronic raffle system.
10 33 Sec. 13. Section 99B.7B, subsection 1, Code 2015, is amended
10 34 to read as follows:
10 35 1. As used in this section, unless the context otherwise
11 1 requires:
11 2 a. "Card game" means only includes but is not limited to
11 3 poker, pinochle, pitch, gin rummy, bridge, euchre, hearts, or
11 4 cribbage.
11 5 b. "Qualified organization representing veterans" means any
11 6 licensed qualified organization representing which represents
11 7 veterans, which is a post, branch, or chapter of a national
11 8 association of veterans of the armed forces of the United
11 9 States which is a federally chartered corporation, dedicates
11 10 the net receipts of a game of skill, game of chance, or raffle
11 11 as provided in section 99B.7 99B.14A, and is exempt from
11 12 federal income taxes under section 501(c)(19) of the Internal
11 13 Revenue Code as defined in section 422.3, has an active
11 14 membership of not less than twelve persons, and does not have a
11 15 self=perpetuating governing body and officers.
11 16 Sec. 14. Section 99B.7B, subsection 2, Code 2015, is amended
11 17 by adding the following new paragraph:
11 18 NEW PARAGRAPH. 0a. The qualified organization representing
11 19 veterans has been issued a license pursuant to section 99B.12B.
11 20 The license application shall identify the premises where the
11 21 card game tournaments are to be conducted and the occupancy
11 22 limit of the premises, and shall include documentation that
11 23 the qualified organization representing veterans has conducted
11 24 regular meetings of the organization at the premises during the
11 25 previous eight months.
11 26 Sec. 15. Section 99B.7B, subsection 2, paragraphs a, b, c,
11 27 d, e, and g, Code 2015, are amended to read as follows:
11 28 a. The qualified organization conducting the card game
11 29 tournament has been issued a license pursuant to subsection 4
11 30 and representing veterans prominently displays that the license
11 31 in the playing area of the card game tournament.
11 32 b. The card games to be conducted during a card game
11 33 tournament, including the rules of each card game and how
11 34 winners are determined, shall be displayed prominently in the
11 35 playing area of the card game tournament.
12 1 0c. Each card game shall be conducted in a fair and honest
12 2 manner and.
12 3 00c. Each card game shall not be operated on a build=up or
12 4 pyramid basis.
12 5 000c. Every participant in a card game tournament must be
12 6 given the same chances of winning the tournament and shall not
12 7 be allowed any second chance entries or multiple entries in the
12 8 card game tournament.
12 9 c. Participation in a card game tournament conducted by
12 10 a qualified organization representing veterans shall only be
12 11 open to members of the qualified organization representing
12 12 veterans and guests of members of the qualified organization
12 13 participating in the tournament, subject to the requirements of
12 14 this section.
12 15 0d. The total number of members and guests participating in
12 16 a card game tournament shall not exceed the occupancy limit of
12 17 the premises where the card game tournament is being conducted.
12 18 00d. Participants in a card game tournament shall be at
12 19 least twenty=one years of age.
12 20 d. (1) If the card game tournament is limited to one guest
12 21 for each member of the qualified organization representing
12 22 veterans participating in the tournament, then the requirements
12 23 of this subparagraph (1) shall apply. The cost to participate
12 24 in a card game tournament under this subparagraph (1) shall be
12 25 limited to one hundred dollars and shall be the same for every
12 26 participant in the card game tournament. Cash or merchandise
12 27 prizes may be awarded during a card game tournament under this
12 28 subparagraph (1) and shall not exceed one thousand dollars and
12 29 no participant shall win more than a total of five hundred
12 30 dollars.
12 31 (2) If the card game tournament is not limited to one guest
12 32 for each member of the qualified organization representing
12 33 veterans participating in the tournament, then the requirements
12 34 of this subparagraph (2) shall apply. The cost to participate
12 35 in a card game tournament under this subparagraph (2) shall be
13 1 limited to twenty=five dollars and shall be the same for every
13 2 participant in the card game tournament. Cash or merchandise
13 3 prizes may be awarded during a card game tournament under this
13 4 subparagraph (2) and shall not exceed three hundred dollars
13 5 and no participant shall win more than a total of two hundred
13 6 dollars.
13 7 (3) 0e. A qualified organization representing veterans
13 8 shall distribute amounts awarded as prizes on the day they
13 9 are won and merchandise prizes shall not be repurchased. An
13 10 organization conducting a card game tournament shall only
13 11 display prizes in the playing area of the card game tournament
13 12 that can be won.
13 13 e. The qualified organization representing veterans shall
13 14 conduct each card game tournament and any card game conducted
13 15 during the tournament and shall not contract with or permit
13 16 another person to conduct the card game tournament or any card
13 17 game during the tournament. In addition, the
13 18 0f. The card game tournament and any card game conducted
13 19 during the tournament shall be conducted only on the premises
13 20 of the qualified organization representing veterans as
13 21 identified in the license application pursuant to as required
13 22 by this subsection 4.
13 23 g. A qualified organization representing veterans licensed
13 24 under this section shall not hold more than two card game
13 25 tournaments per month and shall not hold a card game tournament
13 26 within seven calendar days of another card game tournament
13 27 conducted by that qualified organization representing veterans.
13 28 Card game tournaments held under an annual during a game night
13 29 license conducted pursuant to section 99B.26 shall not count
13 30 toward the limit of one card game tournament per week for a
13 31 license holder. A qualified organization representing veterans
13 32 shall be allowed to hold only one card game tournament during
13 33 any period of twenty=four consecutive hours, starting from the
13 34 time the card game tournament begins.
13 35 Sec. 16. Section 99B.7B, subsection 2, paragraph h, Code
14 1 2015, is amended by striking the paragraph.
14 2 Sec. 17. Section 99B.7B, subsection 3, Code 2015, is amended
14 3 to read as follows:
14 4 3. The qualified organization representing veterans
14 5 licensed to hold card game tournaments under this section
14 6 shall keep a journal of all dates of events, amount of gross
14 7 receipts, amount given out as prizes, expenses, amount
14 8 collected for taxes, and the amount collected as revenue.
14 9 a. The qualified organization representing veterans shall
14 10 dedicate and distribute the net receipts from each card
14 11 game tournament as provided in section 99B.7, subsection 3,
14 12 paragraph "b" 99B.14A.
14 13 b. Each qualified organization representing veterans shall
14 14 withhold that portion of the gross receipts subject to taxation
14 15 pursuant to section 423.2, subsection 4, which shall be kept
14 16 in a separate account and sent to the state along with the
14 17 organization's annual report required by section 99B.2 99B.16A.
14 18 c. A qualified organization representing veterans licensed
14 19 to conduct card game tournaments is allowed to may withhold no
14 20 more than five percent of the gross receipts from each card
14 21 game tournament for qualified expenses. Qualified expenses
14 22 include but are not limited to the purchase of supplies and
14 23 materials used in conducting card games. Any money collected
14 24 for expenses and not used by the end of the state fiscal year
14 25 shall be donated for educational, civic, public, charitable,
14 26 patriotic, or religious uses as described in section 99B.7,
14 27 subsection 3, paragraph "b". The qualified organization
14 28 representing veterans shall attach a receipt for any donation
14 29 made to the annual report required to be submitted pursuant to
14 30 section 99B.2 99B.16A.
14 31 d. Each qualified organization representing veterans
14 32 licensed under this section shall make recordkeeping and all
14 33 deposit receipts available as provided in section 99B.2,
14 34 subsection 2 99B.16A.
14 35 Sec. 18. Section 99B.7B, subsection 4, Code 2015, is amended
15 1 by striking the subsection.
15 2 Sec. 19. Section 99B.9, Code 2015, is amended by striking
15 3 the section and inserting in lieu thereof the following:
15 4 99B.9 Social gambling in public places.
15 5 Social gambling in a public place is lawful, subject to
15 6 the provisions of section 99B.42, if all of the following
15 7 requirements are met:
15 8 1. The social gambling is conducted at any public place
15 9 owned, leased, rented, or otherwise occupied by the licensee.
15 10 2. The person occupying the premises of the public place as
15 11 an owner or tenant has submitted an application for a license
15 12 and a fee of one hundred dollars to the department, and a
15 13 license has been issued.
15 14 3. The license is prominently displayed on the premises of
15 15 the public place.
15 16 4. The licensee or any agent or employee of the licensee
15 17 does not participate in, sponsor, conduct, promote, or act
15 18 as cashier or banker for any gambling activities, except as
15 19 a participant while playing on the same basis as every other
15 20 participant.
15 21 Sec. 20. Section 99B.10A, Code 2015, is amended to read as
15 22 follows:
15 23 99B.10A Electrical and or mechanical amusement device
15 24 manufacturers, distributors, and for=profit owners ==
15 25 registration.
15 26 1. A person engaged in business in this state as a
15 27 manufacturer, manufacturer's representative, distributor, or
15 28 for=profit owner of electrical and or mechanical amusement
15 29 devices required to be registered as provided in section
15 30 99B.10, subsection 1, paragraph "f" 99B.53, shall register with
15 31 the department. Each person who registers with the department
15 32 under this section shall pay an annual registration fee in an
15 33 amount as provided in subsection 2. Registration shall be
15 34 submitted on application forms designated by the department
15 35 that shall contain the information required by the department
16 1 by rule. The department shall adopt rules establishing the
16 2 criteria for approval or denial of a registration application
16 3 and providing for the submission of information to the
16 4 department by a person registered pursuant to this section if
16 5 information in the initial registration is changed, including
16 6 discontinuing the business in this state.
16 7 2. For purposes of this section, the annual registration fee
16 8 shall be as follows:
16 9 a. For a manufacturer or manufacturer's representative, two
16 10 thousand five hundred dollars.
16 11 b. For a distributor, five thousand dollars.
16 12 c. For an owner of no more than two four electrical and or
16 13 mechanical amusement devices registered as provided in section
16 14 99B.10, subsection 1, paragraph "f" 99B.53, at a single location
16 15 or premises that is not an a qualified organization that meets
16 16 the requirements of section 99B.7, subsection 1, paragraph "m",
16 17 two thousand five hundred dollars.
16 18 Sec. 21. Section 99B.10B, Code 2015, is amended to read as
16 19 follows:
16 20 99B.10B Revocation of registration == electrical and or
16 21 mechanical amusement devices == suspension of liquor license or
16 22 beer permit.
16 23 1. a. The department may deny, suspend, or revoke a
16 24 registration issued pursuant to section 99B.10 or 99B.10A or
16 25 99B.53, if the department finds that an applicant, registrant,
16 26 or an agent of a registrant violated or permitted a violation
16 27 of a provision of section 99B.10, 99B.10A, or 99B.10C, 99B.52,
16 28 or 99B.53, or a departmental rule adopted pursuant to chapter
16 29 17A, or for any other cause for which the director of the
16 30 department would be or would have been justified in refusing to
16 31 issue a registration, or upon the conviction of a person of a
16 32 violation of this chapter or a rule adopted under this chapter
16 33 which occurred on the premises where the registered amusement
16 34 device is or is to be located. However, the
16 35 b. The denial, suspension, or revocation of a registration
17 1 for one amusement device does not require, but may result in,
17 2 the denial, suspension, or revocation of the registration for
17 3 a different amusement device held by the same distributor or
17 4 owner.
17 5 b. c. However, a A person who commits an offense of failing
17 6 to include a security mechanism on an amusement device as
17 7 required pursuant to section 99B.10, subsection 1, paragraph
17 8 "m" 99B.52, subsection 4, shall be subject to a civil penalty in
17 9 the amount of two hundred fifty dollars. A person who commits,
17 10 within two years, a second offense of failing to include a
17 11 security mechanism on an amusement device shall be subject to
17 12 the provisions of paragraph "a".
17 13 2. a. A person who commits an offense of awarding a cash
17 14 prize of fifty dollars or less in violation of section 99B.10,
17 15 subsection 1, paragraph "b" 99B.52, subsection 3, pursuant
17 16 to rules adopted by the department, shall be subject to a
17 17 civil penalty in the amount of two hundred fifty dollars.
17 18 Additional sanctions beyond the civil penalty prescribed by
17 19 this paragraph, including but not limited to the suspension or
17 20 revocation of any liquor control license issued pursuant to
17 21 chapter 123 or registration issued pursuant to section 99B.10A
17 22 or 99B.53, shall not be applicable.
17 23 b. A person who commits, within two years, a second offense
17 24 of awarding a cash prize of fifty dollars or less in violation
17 25 of section 99B.10, subsection 1, paragraph "b" 99B.52,
17 26 subsection 3, or a person who commits an offense of awarding a
17 27 cash prize of more than fifty dollars in violation of section
17 28 99B.10, subsection 1, paragraph "b" 99B.52, subsection 3,
17 29 pursuant to rules adopted by the department, shall be subject
17 30 to revocation of the person's registration and the following:
17 31 (1) If the person whose registration is revoked under this
17 32 paragraph "b", is a person for which a class "A", class "B",
17 33 class "C", special class "C", or class "D" liquor control
17 34 license has been issued pursuant to chapter 123, the person's
17 35 liquor control license shall be suspended for a period of
18 1 fourteen days in the same manner as provided in section 123.50,
18 2 subsection 3, paragraph "a".
18 3 (2) If the person whose registration is revoked under this
18 4 paragraph "b", is a person for which only a class "B" or class
18 5 "C" beer permit has been issued pursuant to chapter 123, the
18 6 person's class "B" or class "C" beer permit shall be suspended
18 7 for a period of fourteen days in the same manner as provided in
18 8 section 123.50, subsection 3, paragraph "a".
18 9 (3) If a person owning or employed by an establishment
18 10 having a class "A", class "B", class "C", special class "C",
18 11 or class "D" liquor control license issued pursuant to chapter
18 12 123 commits an offense as provided in this paragraph "b", the
18 13 liquor control license of the establishment shall be suspended
18 14 for a period of fourteen days in the same manner as provided in
18 15 section 123.50, subsection 3, paragraph "a".
18 16 (4) If a person owning or employed by an establishment
18 17 having a class "B" or class "C" beer permit issued pursuant to
18 18 chapter 123 commits an offense as provided in this paragraph
18 19 "b", the beer permit of the establishment shall be suspended
18 20 for a period of fourteen days in the same manner as provided in
18 21 section 123.50, subsection 3, paragraph "a".
18 22 3. a. The process for denial, suspension, or revocation of
18 23 a registration issued pursuant to section 99B.10 or 99B.10A,
18 24 or 99B.53, shall commence by delivering to the applicant or
18 25 registrant by certified mail, return receipt requested, or
18 26 by personal service a notice, by means authorized by section
18 27 17A.18, setting forth the proposed action and the particular
18 28 reasons for such action.
18 29 b. (1) If a written request for a hearing is not received
18 30 within thirty days after the mailing or service of the the
18 31 delivery of notice as provided by paragraph "a", the denial,
18 32 suspension, or revocation of a registration shall become
18 33 effective pending a final determination by the department. The
18 34 proposed action in the notice may be affirmed, modified, or set
18 35 aside by the department in a written decision.
19 1 (2) If a request for a hearing is timely received by
19 2 the department, the applicant or registrant shall be given
19 3 an opportunity for a prompt and fair hearing before the
19 4 department and the denial, suspension, or revocation shall
19 5 be deemed suspended until the department makes a final
19 6 determination. However, the director of the department may
19 7 suspend a registration prior to a hearing if the director
19 8 finds that the public integrity of the registered activity
19 9 is compromised or there is a risk to public health, safety,
19 10 or welfare. In addition, at any time during or prior to the
19 11 hearing, the department may rescind the notice of the denial,
19 12 suspension, or revocation upon being satisfied that the reasons
19 13 for the denial, suspension, or revocation have been or will
19 14 be removed. On the basis of any such hearing, the proposed
19 15 action in the notice may be affirmed, modified, or set aside by
19 16 the department in a written decision. The procedure governing
19 17 hearings authorized by this paragraph shall be in accordance
19 18 with the rules promulgated by the department and chapter 17A.
19 19 c. A copy of the final decision of the department shall
19 20 be sent by electronic mail or certified mail, with return
19 21 receipt requested, or served personally upon the applicant or
19 22 registrant. The applicant or registrant may seek judicial
19 23 review in accordance with the terms of the Iowa administrative
19 24 procedure Act, chapter 17A.
19 25 d. If the department finds cause for denial of a
19 26 registration issued pursuant to section 99B.10 or 99B.10A,
19 27 or 99B.53, the applicant shall not reapply for the same
19 28 registration for a period of two years. If the department
19 29 finds cause for a suspension or revocation, the registration
19 30 shall be suspended or revoked for a period not to exceed two
19 31 years.
19 32 Sec. 22. Section 99B.10C, Code 2015, is amended to read as
19 33 follows:
19 34 99B.10C Electrical and Registered electrical or mechanical
19 35 amusement devices == persons under twenty=one == penalties.
20 1 1. A person under the age of twenty=one years shall not
20 2 participate in the operation of an a registered electrical and
20 3 or mechanical amusement device. A person who violates this
20 4 subsection commits a scheduled violation under section 805.8C,
20 5 subsection 4.
20 6 2. A person owning or leasing an a registered electrical
20 7 and or mechanical amusement device, or an employee of a person
20 8 owning or leasing an a registered electrical and or mechanical
20 9 amusement device, who knowingly allows a person under the age
20 10 of twenty=one years to participate in the operation of an a
20 11 registered electrical and or mechanical amusement device, or
20 12 a person who knowingly participates in the operation of an a
20 13 registered electrical and or mechanical amusement device with a
20 14 person under the age of twenty=one years, is guilty of a simple
20 15 misdemeanor.
20 16 3. For purposes of this section, an electrical and
20 17 mechanical amusement device "registered electrical or mechanical
20 18 amusement device" means an electrical and or mechanical
20 19 amusement device required to be registered as provided in
20 20 section 99B.10, subsection 1, paragraph "f" 99B.53.
20 21 Sec. 23. Section 99B.10D, Code 2015, is amended to read as
20 22 follows:
20 23 99B.10D Electrical and or mechanical amusement devices ==
20 24 special fund.
20 25 Fees collected by the department pursuant to sections
20 26 99B.10 and 99B.10A and 99B.53 shall be deposited in a special
20 27 fund created in the state treasury. Moneys in the fund are
20 28 appropriated to the department of inspections and appeals
20 29 and the department of public safety for administration and
20 30 enforcement of sections 99B.10, 99B.10A, 99B.10B, and 99B.10C
20 31 this subchapter, including employment of necessary personnel.
20 32 The distribution of moneys in the fund to the department of
20 33 inspections and appeals and the department of public safety
20 34 shall be pursuant to a written policy agreed upon by the
20 35 departments. Notwithstanding section 12C.7, subsection 2,
21 1 interest or earnings on moneys deposited in the fund shall be
21 2 credited to the fund. Notwithstanding section 8.33, moneys
21 3 remaining in the fund at the end of a fiscal year shall not
21 4 revert to the general fund of the state.
21 5 Sec. 24. Section 99B.11, Code 2015, is amended to read as
21 6 follows:
21 7 99B.11 Bona fide contests.
21 8 1. It is lawful for a A person to may conduct, without a
21 9 license, any of the contests specified in subsection 2, and to
21 10 may offer and pay awards to persons winning in those contests
21 11 whether or not entry fees, participation fees, or other charges
21 12 are assessed against or collected from the participants, but
21 13 only if all of the following requirements are complied with
21 14 met:
21 15 a. The contest is not held at an amusement concession.
21 16 b. No A gambling device is not used in conjunction with, or
21 17 incident to the contest.
21 18 c. b. The contest is not conducted in whole or in part
21 19 on or in any property subject to chapter 297, relating to
21 20 schoolhouses and schoolhouse sites, unless the contest and the
21 21 person conducting the contest has the express written approval
21 22 of the governing body of that school district.
21 23 d. c. The contest is conducted in a fair and honest manner.
21 24 d. A contest shall not be designed or adapted to permit the
21 25 operator of the contest to prevent a participant from winning
21 26 or to predetermine who the winner will be, and the.
21 27 e. The object of the contest must be attainable and possible
21 28 to perform under the rules stated.
21 29 f. If the contest is a tournament, the tournament operator
21 30 shall prominently display all tournament rules.
21 31 2. A contest, including a contest in a league or tournament,
21 32 is not lawful unless only if it is falls into one of the
21 33 following contests event categories:
21 34 a. Athletic or sporting events. Athletic or sporting
21 35 contests, leagues or tournaments, Events in this category
22 1 include basketball, volleyball, football, baseball, softball,
22 2 soccer, wrestling, swimming, track and field, racquetball,
22 3 tennis, squash, badminton, table tennis, rodeos, horse shows,
22 4 golf, bowling, trap or skeet shoots, fly casting, tractor
22 5 pulling, rifle, pistol, musket, or muzzle=loader shooting, pool
22 6 billiards, darts, archery, and horseshoe contests, leagues, or
22 7 tournaments horseshoes.
22 8 b. Racing and skill=type events. Horse Events in this
22 9 category include horse races, harness racing, ski, airplane,
22 10 snowmobile, raft, boat, bicycle, and motor vehicle races.
22 11 c. Arts and crafts=type events. Contests or exhibitions
22 12 of Events in this category include cooking, horticulture,
22 13 livestock, poultry, fish or other animals, artwork, hobbywork
22 14 or, and craftwork, except those prohibited by chapter 717A.
22 15 d. Card game=type and board game=type events. Cribbage,
22 16 Events in this category include cribbage, bridge, euchre,
22 17 chess, checkers, dominoes, and pinochle and similar contests,
22 18 leagues or tournaments. The provisions of this paragraph are
22 19 retroactive to August 15, 1975.
22 20 e. Trivia and trading card events.
22 21 f. Video game=type and video sporting=type events. A video
22 22 machine golf tournament game which is an interactive bona fide
22 23 contest. A player operates a video machine golf tournament
22 24 game with a trackball assembly which acts as the golfer's swing
22 25 and determines the results of play and tournament scores. A
22 26 video machine golf tournament game is capable of receiving
22 27 program and data information from an off=site location. A
22 28 tournament operator shall prominently display all tournament
22 29 rules. Events in this category include pinball games, video
22 30 games, and video machine golf tournament games, where skill
22 31 is the predominant factor in determining the result of play
22 32 and tournament scores. To be lawful, a player shall operate a
22 33 video machine with a device which directly impacts the results
22 34 of the game.
22 35 3. A poker, blackjack, craps, keno, or roulette contest,
23 1 league, or tournament shall not be considered a bona fide
23 2 contest under this section.
23 3 Sec. 25. NEW SECTION. 99B.11A Definitions.
23 4 As used in this subchapter and subchapter III, unless the
23 5 context otherwise requires:
23 6 1. "Electronic bingo equipment" means an electronic device
23 7 that assists an individual with a disability in the use of a
23 8 bingo card during a bingo game.
23 9 2. "Large raffle" means a raffle where the cumulative value
23 10 of cash and prizes is more than ten thousand dollars but not
23 11 more than one hundred thousand dollars.
23 12 3. "Small raffle" means a raffle where the cumulative value
23 13 of cash and prizes is more than one thousand dollars but not
23 14 more than ten thousand dollars.
23 15 4. "Very large raffle" means a raffle where the cumulative
23 16 value of cash and prizes is more than one hundred thousand
23 17 dollars but not more than two hundred thousand dollars or the
23 18 prize is real property.
23 19 5. "Very small raffle" means a raffle where the cumulative
23 20 value of the cash prize or prizes is one thousand dollars or
23 21 less and the value of all entries sold is one thousand dollars
23 22 or less, or the cumulative value of the donated merchandise
23 23 prize or prizes is five thousand dollars or less and the value
23 24 of all entries sold is five thousand dollars or less.
23 25 Sec. 26. Section 99B.12, Code 2015, is amended by striking
23 26 the section and inserting in lieu thereof the following:
23 27 99B.12 Social gambling between individuals.
23 28 1. An individual may participate in social gambling if,
23 29 subject to the requirements of section 99B.42, all of the
23 30 following requirements are met:
23 31 a. The gambling is not participated in, either wholly or in
23 32 part, on or in any schoolhouses, schoolhouse sites, or other
23 33 property subject to chapter 297.
23 34 b. All participants in the gambling are individuals.
23 35 c. A person shall not participate in any wager, bet, or
24 1 pool which relates to an athletic event or contest and which
24 2 is authorized or sponsored by one or more schools, educational
24 3 institutions, or interscholastic athletic organizations, if
24 4 the person is a coach, official, player, or contestant in the
24 5 athletic event or contest.
24 6 d. In any game requiring a dealer or operator, the
24 7 participants must have the option to take their turn at dealing
24 8 or operating the game in a regular order according to the
24 9 standard rules of the game.
24 10 2. Social gambling allowed under this section is limited to
24 11 any of the following:
24 12 a. Games of skill and games of chance, except casino=style
24 13 games other than poker.
24 14 b. Wagers or bets between two or more individuals who are
24 15 physically in the presence of each other with respect to any
24 16 of the following:
24 17 (1) A contest specified in section 99B.11, except that no
24 18 individual shall win or lose more than a total of two hundred
24 19 dollars or equivalent consideration in one or more contests at
24 20 any time during any period of twenty=four consecutive hours or
24 21 over that entire period.
24 22 (2) Any other event or outcome which does not depend upon
24 23 gambling or the use of a gambling device that is unlawful in
24 24 this state.
24 25 Sec. 27. NEW SECTION. 99B.12B Qualified organization
24 26 licenses == general provisions == types of licenses.
24 27 1. General provisions.
24 28 a. A qualified organization shall submit an application for
24 29 a license, along with any required fees, to the department at
24 30 least thirty days in advance of the beginning of the gambling
24 31 activity, including the sale of entries or promotion of the
24 32 sale of entries for raffles.
24 33 b. For purposes of this section, a license is deemed to be
24 34 issued on the first day of the period for which the license is
24 35 issued.
25 1 c. An applicant that has not submitted an annual report
25 2 required pursuant to section 99B.16A shall submit such report
25 3 prior to approval of the application.
25 4 d. A license shall not be issued to an applicant whose
25 5 previous license issued under this chapter or chapter 123 has
25 6 been revoked until the period of revocation or revocations has
25 7 elapsed.
25 8 e. The license fee is not refundable.
25 9 2. Two=year qualified organization license.
25 10 a. The license fee for a two=year qualified organization
25 11 license is one hundred fifty dollars.
25 12 b. An applicant for a license under this subsection shall
25 13 be a qualified organization that has been in existence for at
25 14 least five years, or is a local chapter or an affiliate of a
25 15 national tax=exempt organization that has been in existence
25 16 for at least two years and has provided written authorization
25 17 from the national organization to the department. The national
25 18 tax=exempt organization shall be exempt from federal income
25 19 taxes as described in section 99B.1, subsection 25, paragraph
25 20 "a", and have been in existence at least five years.
25 21 c. A qualified organization issued a two=year qualified
25 22 organization license may conduct the following activities:
25 23 (1) Unlimited games of skill or games of chance except for
25 24 bingo.
25 25 (2) An unlimited number of very small raffles and an
25 26 unlimited number of small raffles, including electronic
25 27 raffles.
25 28 (3) One large raffle, including an electronic raffle,
25 29 each calendar year during the two=year period, subject to the
25 30 requirements of section 99B.24.
25 31 (4) Up to three bingo occasions per week and up to fifteen
25 32 bingo occasions per month.
25 33 (5) One game night each calendar year during the two=year
25 34 period, subject to the requirements of section 99B.26.
25 35 3. One=year qualified organization raffle license.
26 1 a. The license fee for a one=year qualified organization
26 2 raffle license is one hundred fifty dollars.
26 3 b. A qualified organization issued a one=year qualified
26 4 organization raffle license may conduct the following
26 5 activities:
26 6 (1) An unlimited number of very small raffles and an
26 7 unlimited number of small raffles.
26 8 (2) Up to eight large raffles with each large raffle
26 9 conducted in a different county during the one=year period,
26 10 subject to the requirements of section 99B.24.
26 11 (3) One game night during the one=year period, subject to
26 12 the requirements of section 99B.26.
26 13 4. One hundred eighty=day qualified organization raffle
26 14 license.
26 15 a. The license fee for a one hundred eighty=day qualified
26 16 organization raffle license is seventy=five dollars.
26 17 b. A qualified organization issued a one hundred eighty=day
26 18 qualified organization raffle license may conduct the following
26 19 activities:
26 20 (1) An unlimited number of very small raffles and an
26 21 unlimited number of small raffles.
26 22 (2) One large raffle during the period of one hundred eighty
26 23 days, subject to the requirements of section 99B.24.
26 24 (3) One game night during the period of one hundred eighty
26 25 days, subject to the requirements of section 99B.26.
26 26 5. Ninety=day qualified organization raffle license.
26 27 a. The license fee for a ninety=day qualified organization
26 28 raffle license is forty dollars.
26 29 b. A qualified organization issued a ninety=day qualified
26 30 organization raffle license may conduct the following
26 31 activities:
26 32 (1) An unlimited number of very small raffles and an
26 33 unlimited number of small raffles.
26 34 (2) One large raffle during the period of ninety days,
26 35 subject to the requirements of section 99B.24.
27 1 (3) One game night during the period of ninety days, subject
27 2 to the requirements of section 99B.26.
27 3 6. Fourteen=day qualified organization license.
27 4 a. The license fee for a fourteen=day qualified organization
27 5 license is fifteen dollars.
27 6 b. A qualified organization issued a fourteen=day qualified
27 7 organization license may conduct the following activities:
27 8 (1) Unlimited games of skill or games of chance except for
27 9 bingo.
27 10 (2) An unlimited number of very small raffles and an
27 11 unlimited number of small raffles.
27 12 (3) One large raffle during the period of fourteen days,
27 13 subject to the requirements of section 99B.24.
27 14 (4) Two bingo occasions during the period of fourteen days
27 15 with no limit on the number of bingo games or the number of
27 16 hours played during each designated bingo day. Bingo occasions
27 17 conducted pursuant to a fourteen=day qualified organization
27 18 license do not count toward the fifteen bingo occasions per
27 19 month authorized for a two=year qualified organization license.
27 20 (5) One game night during the period of fourteen days,
27 21 subject to the requirements of section 99B.26.
27 22 7. Qualified organizations == school provisions. A school
27 23 district or a public or nonpublic school may be issued a
27 24 qualified organization license under this section subject to
27 25 the following additional restrictions:
27 26 a. The application for a license shall be authorized by
27 27 the board of directors of a school district for public schools
27 28 within that district, or the policymaking body of a nonpublic
27 29 school for a nonpublic school.
27 30 b. Activities authorized by the license may be held at
27 31 bona fide school functions such as carnivals, fall festivals,
27 32 bazaars, and similar events.
27 33 c. Each school shall obtain a license pursuant to this
27 34 section prior to permitting the games or activities on the
27 35 premises of that school.
28 1 d. The board of directors of a public school district
28 2 may also be issued a license under this section. A board
28 3 of directors of a public school district shall not spend or
28 4 authorize the expenditure of public funds for the purpose of
28 5 purchasing a license.
28 6 e. Upon written approval by the board of directors of a
28 7 school district for public schools within that district or
28 8 the policymaking body of a nonpublic school, the license may
28 9 be used by any school group or parent support group in the
28 10 district or at the nonpublic school to conduct activities
28 11 authorized by this section. The board of directors or
28 12 policymaking body shall not authorize a school group or parent
28 13 support group to use the license to conduct more than two
28 14 events in a calendar year.
28 15 8. Qualified organizations == miscellaneous provisions. A
28 16 political party or party organization may contract with other
28 17 qualified organizations to conduct the games of skill, games
28 18 of chance, and raffles which may lawfully be conducted by the
28 19 political party or party organization. A licensed qualified
28 20 organization may promote the games of skill, games of chance,
28 21 and raffles which it may lawfully conduct.
28 22 Sec. 28. NEW SECTION. 99B.13A Licensed qualified
28 23 organizations == general requirements.
28 24 A qualified organization licensed pursuant to section
28 25 99B.12B shall, as a condition of licensure under section
28 26 99B.12B, comply with the requirements of this section.
28 27 1. Authorized gambling activities == display of license. A
28 28 licensed qualified organization may only conduct gambling
28 29 activities as authorized by the license and shall prominently
28 30 display the license in the playing area where the gambling
28 31 activities are conducted.
28 32 2. Location requirements.
28 33 a. Gambling activities, as authorized by the type of
28 34 license, may be conducted on premises owned, leased, or rented
28 35 by the licensee. The amount imposed and collected for rental
29 1 or lease of such premises shall not be a percentage of, or
29 2 otherwise related to, the amount of the receipts for the
29 3 authorized gambling activities.
29 4 b. A gambling activity shall not take place on a gaming
29 5 floor, as defined in section 99F.1, licensed by the state
29 6 racing and gaming commission created in section 99D.5.
29 7 3. Participation requirements.
29 8 a. A person shall not receive or have any fixed or
29 9 contingent right to receive, directly or indirectly, any
29 10 profit, remuneration, or compensation from or related to a
29 11 gambling activity conducted by a licensee, except any amount
29 12 which the person may win as a participant on the same basis as
29 13 the other participants.
29 14 b. The price to participate in a gambling activity,
29 15 including any discounts for the gambling activity, shall be the
29 16 same for each participant during the course of the gambling
29 17 activity.
29 18 c. The person conducting the gambling activity shall not
29 19 participate in the game.
29 20 4. Gambling activity requirements.
29 21 a. A gambling activity shall not be operated on a build=up
29 22 or pyramid basis.
29 23 b. Bookmaking shall not be allowed.
29 24 c. Concealed numbers or conversion charts shall not be used
29 25 in conducting any gambling activity.
29 26 d. A gambling activity shall not be adapted with any control
29 27 device to permit manipulation of the gambling activity by
29 28 the operator in order to prevent a player from winning or to
29 29 predetermine who the winner will be.
29 30 e. The object of the gambling activity must be attainable
29 31 and possible to perform under the rules stated from the playing
29 32 position of the player.
29 33 f. The gambling activity shall be conducted in a fair and
29 34 honest manner.
29 35 g. Rules for each gambling activity shall be posted.
30 1 h. Casino=style games shall only be allowed during a game
30 2 night as specified under section 99B.26 or during card game
30 3 tournaments under section 99B.7B.
30 4 Sec. 29. Section 99B.14, Code 2015, is amended to read as
30 5 follows:
30 6 99B.14 License denial, suspension, and revocation.
30 7 1. The department may deny, suspend, or revoke a license
30 8 if the department finds that an applicant, licensee, or an
30 9 agent of the licensee violated or permitted a violation of
30 10 a provision of this chapter or a departmental rule adopted
30 11 pursuant to chapter 17A, or for any other cause for which
30 12 the director of the department would be or would have
30 13 been justified in refusing to issue a license, or upon the
30 14 conviction of a person of a violation of this chapter or a
30 15 rule adopted under this chapter which occurred on the licensed
30 16 premises. However, the denial, suspension, or revocation of
30 17 one type of gambling license does not require, but may result
30 18 in, the denial, suspension, or revocation of a different type
30 19 of gambling license held by the same licensee. In addition, a
30 20 2. A person whose license is revoked under this section who
30 21 is a person for which whom a class "A", class "B", class "C",
30 22 or class "D" liquor control license has been issued pursuant
30 23 to chapter 123 shall have the person's liquor control license
30 24 suspended for a period of fourteen days in the same manner as
30 25 provided in section 123.50, subsection 3, paragraph "a". In
30 26 addition, a
30 27 3. A person whose license is revoked under this section
30 28 who is a person for which whom only a class "B" or class "C"
30 29 beer permit has been issued pursuant to chapter 123 shall have
30 30 the person's class "B" or class "C" beer permit suspended for
30 31 a period of fourteen days in the same manner as provided in
30 32 section 123.50, subsection 3, paragraph "a".
30 33 2. 4. The process for denial, suspension, or revocation
30 34 of a license shall commence by delivering to the applicant
30 35 or licensee by certified mail, return receipt requested, or
31 1 by personal service a notice, by means authorized by section
31 2 17A.18, setting forth the particular reasons for such action.
31 3 a. If a written request for a hearing is not received within
31 4 thirty days after the mailing or service of the delivery of
31 5 notice as provided in this subsection, the denial, suspension,
31 6 or revocation of a license shall become effective pending a
31 7 final determination by the department. The determination
31 8 involved in the notice may be affirmed, modified, or set aside
31 9 by the department in a written decision.
31 10 b. If a request for a hearing is timely received by the
31 11 department, the applicant or licensee shall be given an
31 12 opportunity for a prompt and fair hearing before the department
31 13 and the denial, suspension, or revocation shall be deemed
31 14 suspended until the department makes a final determination.
31 15 However, the director may suspend a license prior to a hearing
31 16 if the director finds that the public integrity of the licensed
31 17 activity is compromised or there is a risk to public health,
31 18 safety, or welfare. In addition, at any time during or prior
31 19 to the hearing the department may rescind the notice of the
31 20 denial, suspension, or revocation upon being satisfied that the
31 21 reasons for the denial, suspension, or revocation have been
31 22 or will be removed. On the basis of any such hearing, the
31 23 determination involved in the notice may be affirmed, modified,
31 24 or set aside by the department in a written decision.
31 25 3. 5. A copy of the final decision of the department shall
31 26 be sent by electronic mail or certified mail, with return
31 27 receipt requested, or served personally upon the applicant
31 28 or licensee. The applicant or licensee may seek judicial
31 29 review in accordance with the terms of the Iowa administrative
31 30 procedure Act, chapter 17A.
31 31 4. 6. The procedure governing hearings authorized by this
31 32 section shall be in accordance with the rules promulgated by
31 33 the department and chapter 17A.
31 34 5. 7. If the department finds cause for denial of a
31 35 license, the applicant may not reapply for the same license
32 1 for a period of two years. If the department finds cause
32 2 for suspension, the license shall be suspended for a period
32 3 determined by the department. If the department finds cause
32 4 for revocation, the license shall be revoked for a period not
32 5 to exceed two years.
32 6 Sec. 30. NEW SECTION. 99B.14A Distribution of proceeds ==
32 7 licensed qualified organizations.
32 8 1. A licensed qualified organization shall certify
32 9 that the receipts from all charitable gambling conducted
32 10 by the organization under this chapter, less reasonable
32 11 expenses, charges, fees, taxes, and deductions, either will
32 12 be distributed as prizes to participants or will be dedicated
32 13 and distributed for educational, civic, public, charitable,
32 14 patriotic, or religious uses. Reasonable expenses, charges,
32 15 fees, taxes other than the state and local sales tax, and
32 16 deductions allowed by the department shall not exceed forty
32 17 percent of net receipts.
32 18 2. A licensed qualified organization shall dedicate and
32 19 distribute the balance of the net receipts received within
32 20 a calendar year and remaining after deduction of reasonable
32 21 expenses, charges, fees, taxes, and deductions allowed by
32 22 this chapter, before the annual report required under section
32 23 99B.16A is due.
32 24 a. A person desiring to hold the net receipts for a period
32 25 longer than permitted under this subsection shall apply to the
32 26 department for special permission and upon good cause shown the
32 27 department may grant the request.
32 28 b. If permission is granted to hold the net receipts,
32 29 the person shall, as a part of the annual report required by
32 30 section 99B.16A, report the amount of money being held and all
32 31 expenditures of the funds. This report shall be filed even if
32 32 the person no longer holds a gambling license.
32 33 3. Proceeds coming into the possession of a person under
32 34 this section are deemed to be held in trust for payment
32 35 of expenses and dedication to educational, civic, public,
33 1 charitable, patriotic, or religious uses as required by this
33 2 section.
33 3 4. A licensed qualified organization or agent of the
33 4 organization who willfully fails to dedicate the required
33 5 amount of proceeds to educational, civic, public, charitable,
33 6 patriotic, or religious uses as required by this section
33 7 commits a fraudulent practice under chapter 714.
33 8 5. Proceeds distributed to another charitable organization
33 9 to satisfy the sixty percent dedication requirement shall not
33 10 be used by the donee to pay any expenses in connection with the
33 11 conducting of any gambling activity by the donor organization,
33 12 or for any use that would not constitute a valid dedication
33 13 under this section.
33 14 Sec. 31. Section 99B.15, Code 2015, is amended by striking
33 15 the section and inserting in lieu thereof the following:
33 16 99B.15 Penalties.
33 17 In addition to any other penalty specified in this chapter,
33 18 the following penalties shall apply:
33 19 1. A person who knowingly fails to comply with the
33 20 requirements of this chapter and the rules adopted pursuant to
33 21 chapter 17A commits a serious misdemeanor.
33 22 2. A person who intentionally files a false or fraudulent
33 23 report or application as required by this chapter commits a
33 24 fraudulent practice under chapter 714.
33 25 Sec. 32. NEW SECTION. 99B.15A Prizes awarded by licensed
33 26 qualified organizations.
33 27 1. Unless otherwise provided, a prize awarded by a licensed
33 28 qualified organization shall comply with the following
33 29 requirements:
33 30 a. Only merchandise prizes whose value does not exceed ten
33 31 thousand dollars may be awarded for games of skill and games
33 32 of chance. If a prize consists of more than one item, unit, or
33 33 part, the aggregate value of all items, units, or parts shall
33 34 not exceed ten thousand dollars.
33 35 b. A merchandise prize shall not be repurchased.
34 1 c. No prize shall be displayed which cannot be won.
34 2 d. A cash prize may only be awarded in bingo and raffles.
34 3 e. A prize shall be distributed on the day the prize is won,
34 4 except that if the winner is not present, notification to the
34 5 winner shall be made as soon as practical.
34 6 2. A licensed qualified organization awarding a prize
34 7 for bingo is subject to the restrictions provided in section
34 8 99B.21A. A licensed qualified organization awarding a prize
34 9 for a raffle is subject to the restrictions provided in section
34 10 99B.24.
34 11 Sec. 33. NEW SECTION. 99B.16A Records and reports ==
34 12 licensed qualified organization.
34 13 1. A qualified organization licensed pursuant to section
34 14 99B.12B, unless otherwise provided, shall maintain proper
34 15 books of account and records showing, in addition to any other
34 16 information required by the department, the following:
34 17 a. Gross receipts and the amount of the gross receipts
34 18 taxes collected or accrued with respect to gambling activities
34 19 conducted by the licensed qualified organization.
34 20 b. All expenses, charges, fees, and other deductions.
34 21 c. The cash amounts, or the cost to the licensee of goods
34 22 or other noncash valuables, distributed to participants in the
34 23 licensed activity.
34 24 d. The amounts dedicated and the date and name and address
34 25 of each person to whom distributed.
34 26 2. The books of account and records shall be made available
34 27 to the department or a law enforcement agency for inspection at
34 28 reasonable times, with or without notice. A failure to permit
34 29 inspection is a serious misdemeanor.
34 30 3. A licensed qualified organization required to maintain
34 31 records shall submit an annual report to the department on
34 32 forms furnished by the department. The annual report shall be
34 33 submitted by January 31 of each year for the prior calendar
34 34 year period of January 1 through December 31.
34 35 Sec. 34. Section 99B.17, Code 2015, is amended by striking
35 1 the section and inserting in lieu thereof the following:
35 2 99B.17 Allowable forms for payment.
35 3 1. Social gambling, registered amusement devices, and
35 4 amusement concessions not at a permanent location, require
35 5 payment solely by cash.
35 6 2. Except as provided by subsection 1, a participant in
35 7 an activity authorized by this chapter may make payment by
35 8 cash, personal check, money order, bank check, cashier's check,
35 9 electronic check, or debit card.
35 10 3. The department shall adopt rules setting minimum
35 11 standards to ensure compliance with applicable federal law and
35 12 for the protection of personal information consistent with
35 13 payment card industry compliance regulations.
35 14 Sec. 35. Section 99B.21, Code 2015, is amended to read as
35 15 follows:
35 16 99B.21 Tax on prizes.
35 17 All prizes awarded pursuant to a gambling activity under
35 18 this chapter are Iowa earned income and are subject to state
35 19 and federal income tax laws. A person conducting a game of
35 20 skill, game of chance, bingo, or a raffle shall deduct state
35 21 income taxes, pursuant to section 422.16, subsection 1, from a
35 22 cash prize awarded to an individual. An amount deducted from
35 23 the prize for payment of a state tax shall be remitted to the
35 24 department of revenue on behalf of the prize winner.
35 25 Sec. 36. NEW SECTION. 99B.21A Bingo.
35 26 A licensed qualified organization shall comply with the
35 27 requirements of this section for the purposes of conducting
35 28 bingo at a bingo occasion.
35 29 1. Operational requirements.
35 30 a. A bingo occasion shall not last for longer than four
35 31 consecutive hours.
35 32 b. Only one licensed qualified organization may conduct
35 33 bingo occasions within the same structure or building.
35 34 c. A licensed qualified organization shall not conduct or
35 35 offer free bingo games.
36 1 d. A licensed qualified organization shall not conduct bingo
36 2 within a building or structure that is licensed pursuant to
36 3 chapter 99D or 99F.
36 4 2. Prize requirements.
36 5 a. A cash or merchandise prize may be awarded in the game of
36 6 bingo.
36 7 b. A cash prize shall not exceed two hundred fifty dollars
36 8 per game of bingo.
36 9 c. A merchandise prize may be awarded in the game of bingo,
36 10 but the actual retail value of the prize, or if the prize
36 11 consists of more than one item, unit, or part, the aggregate
36 12 retail value of all items, units, or parts, shall not exceed
36 13 two hundred fifty dollars in value.
36 14 d. A jackpot bingo game may be conducted twice during any
36 15 twenty=four=hour period in which the prize may begin at not
36 16 more than five hundred dollars in cash or actual retail value
36 17 of merchandise prizes and may be increased by not more than two
36 18 hundred dollars after each bingo occasion to a maximum prize
36 19 of one thousand dollars for the first jackpot bingo game and
36 20 two thousand five hundred dollars for the second jackpot bingo
36 21 game.
36 22 3. Equipment requirements.
36 23 a. A licensed qualified organization conducting bingo shall
36 24 purchase bingo equipment and supplies only from a manufacturer
36 25 or distributor licensed by the department.
36 26 b. A licensed qualified organization may lease electronic
36 27 bingo equipment from a manufacturer or distributor licensed
36 28 by the department for the purposes of aiding individuals with
36 29 disabilities during a bingo occasion.
36 30 4. Accounting requirements. A qualified organization
36 31 conducting bingo occasions under a two=year qualified
36 32 organization license and expecting annual gross receipts of
36 33 more than ten thousand dollars shall establish and maintain one
36 34 regular checking account designated the "bingo account" and may
36 35 also maintain one or more interest=bearing savings accounts
37 1 designated as "bingo savings account". The accounts shall be
37 2 maintained in a financial institution in Iowa.
37 3 a. Funds derived from the conduct of bingo, less the
37 4 amount awarded as cash prizes, shall be deposited in the bingo
37 5 account.
37 6 (1) No other funds except limited funds of the organization
37 7 deposited to pay initial or unexpected emergency expenses shall
37 8 be deposited in the bingo account.
37 9 (2) Deposits shall be made no later than the next business
37 10 day following the day of the bingo occasion on which the
37 11 receipts were obtained.
37 12 b. Payments shall be paid from the bingo account only for
37 13 the following purposes:
37 14 (1) The payment of reasonable expenses permitted under
37 15 section 99B.14A, subsection 1, incurred and paid in connection
37 16 with the conduct of bingo.
37 17 (2) The disbursement of net proceeds derived from the
37 18 conduct of bingo for educational, civic, public, charitable,
37 19 patriotic, or religious uses as required by section 99B.14A,
37 20 subsection 1.
37 21 (3) The transfer of net proceeds derived from the conduct
37 22 of bingo to a bingo savings account pending disbursement for
37 23 educational, civic, public, charitable, patriotic, or religious
37 24 uses.
37 25 (4) To withdraw initial or emergency funds deposited under
37 26 paragraph "a".
37 27 (5) To pay prizes if the qualified organization decides to
37 28 pay prizes by check rather than cash.
37 29 c. Except as permitted by paragraph "a", gross receipts
37 30 derived from the conduct of bingo shall not be commingled with
37 31 other funds of the licensed qualified organization. Except as
37 32 permitted by paragraph "b", subparagraphs (3) and (4), gross
37 33 receipts shall not be transferred to another account maintained
37 34 by the licensed qualified organization.
37 35 Sec. 37. NEW SECTION. 99B.24 Raffles.
38 1 1. General provisions. A licensed qualified organization
38 2 may conduct a raffle as permitted by the applicable license and
38 3 in accordance with the following requirements:
38 4 a. The winner of a raffle shall not be required to be
38 5 present to win.
38 6 b. If the winner is not present to win, notification to the
38 7 winner shall be made as soon as practical.
38 8 c. A cash or merchandise prize may be awarded in a raffle.
38 9 If a merchandise prize is awarded, the actual retail value of
38 10 the prize, or if the prize consists of more than one item,
38 11 unit, or part, the aggregate retail value of all items, units,
38 12 or parts, shall not exceed the maximum value allowed for that
38 13 raffle.
38 14 d. Calendar raffles and build=up or pyramid raffles are
38 15 prohibited.
38 16 e. If a raffle is conducted at a fair, the licensed
38 17 qualified organization shall receive written permission from
38 18 the sponsor of the fair to conduct the raffle.
38 19 f. A licensed qualified organization shall, regardless of
38 20 the number of licenses issued, only conduct one large raffle
38 21 per calendar year. However, a licensed qualified organization
38 22 issued a one=year qualified organization raffle license may
38 23 conduct up to eight large raffles with each large raffle
38 24 conducted in a different county during the one=year period.
38 25 2. Very large raffles. A licensed qualified organization
38 26 may conduct one very large raffle per calendar year subject to
38 27 the provisions of this subsection.
38 28 a. The licensed qualified organization shall submit a very
38 29 large raffle license application and a fee of one hundred
38 30 dollars to the department and be issued a license.
38 31 b. The licensed qualified organization shall prominently
38 32 display the license at the drawing area of the raffle.
38 33 c. If the raffle prize is real property, the real property
38 34 shall be acquired by gift or donation or shall have been owned
38 35 by the licensed qualified organization for a period of at least
39 1 five years.
39 2 d. The department shall conduct a special audit of a
39 3 very large raffle to verify compliance with the applicable
39 4 requirements of this chapter concerning raffles and very large
39 5 raffles.
39 6 e. The licensed qualified organization shall submit to the
39 7 department within sixty days of the very large raffle drawing a
39 8 cumulative report for the raffle on a form determined by the
39 9 department and one percent of the gross receipts from the very
39 10 large raffle. The one percent of the gross receipts shall be
39 11 retained by the department to pay for the cost of the special
39 12 audit.
39 13 3. Very small raffles. A qualified organization may conduct
39 14 one very small raffle per calendar year without obtaining a
39 15 qualified organization license. A qualified organization
39 16 conducting a very small raffle as authorized by this subsection
39 17 shall comply with the requirements for conducting a raffle
39 18 by a licensed qualified organization, including payment of
39 19 applicable sales tax. However, a qualified organization
39 20 holding only one very small raffle per calendar year shall be
39 21 exempt from the reporting requirements in section 99B.16A.
39 22 Sec. 38. NEW SECTION. 99B.25 Electronic raffles.
39 23 1. A qualified organization with a two=year qualified
39 24 organization license may conduct a raffle using an electronic
39 25 raffle system, if the qualified organization complies with the
39 26 requirements of section 99B.24 and this section.
39 27 2. The licensed qualified organization shall only use
39 28 an electronic raffle system purchased from a manufacturer or
39 29 distributor licensed pursuant to section 99B.7A and certified
39 30 by an entity approved by the department. The electronic raffle
39 31 system may include stationary and portable or wireless raffle
39 32 sales units.
39 33 3. A licensed qualified organization shall hold only one
39 34 raffle using an electronic raffle system per calendar day. A
39 35 licensed qualified organization shall not hold a very large
40 1 raffle using an electronic raffle system and may hold only one
40 2 large raffle using an electronic raffle system per calendar
40 3 year. A large raffle conducted using an electronic raffle
40 4 system counts toward the limit of one large raffle per calendar
40 5 year under section 99B.24, subsection 1, paragraph "f".
40 6 4. Except for a large raffle conducted using an electronic
40 7 raffle system, the prize for an electronic raffle shall be
40 8 limited to the amount allowed for a small raffle.
40 9 5. Entries for a raffle using an electronic raffle system
40 10 shall not be preprinted and shall be provided to the purchaser
40 11 at the time of sale.
40 12 6. The electronic raffle receipt shall contain the
40 13 following information:
40 14 a. The name of the licensed qualified organization.
40 15 b. The license identification number of the qualified
40 16 organization.
40 17 c. The location, date, and time of the corresponding raffle
40 18 drawing.
40 19 d. The unique printed entry number, or multiple entry
40 20 numbers, of the raffle entry.
40 21 e. The price of the raffle entry.
40 22 f. An explanation of the prize to be awarded.
40 23 g. The statement, "Need not be present to win", and the
40 24 contact information, including name, telephone number, and
40 25 electronic mail address, of the individual from the qualified
40 26 organization responsible for prize disbursements.
40 27 h. The date by which the prize shall be claimed which shall
40 28 be no fewer than fourteen days following the drawing.
40 29 7. Each electronic raffle entry shall reflect a single
40 30 unique printed entry number on the entry.
40 31 8. The licensed qualified organization shall use a manual
40 32 draw procedure for the electronic raffle which ensures a draw
40 33 number is randomly selected as a winner from the entries sold.
40 34 a. The winning entry shall be verified as a sold and valid
40 35 entry prior to awarding the prize.
41 1 b. The drawing of the winning entry shall be done in such
41 2 manner as to allow the purchasers to observe the drawing.
41 3 9. If the prize is not claimed, the licensed qualified
41 4 organization shall donate the unclaimed prize to an
41 5 educational, civic, public, charitable, patriotic, or religious
41 6 use.
41 7 10. The department may determine any other requirements for
41 8 conducting an electronic raffle by rule.
41 9 Sec. 39. NEW SECTION. 99B.26 Game nights.
41 10 1. A licensed qualified organization may conduct one game
41 11 night per calendar year subject to the provisions of this
41 12 section.
41 13 2. A licensed qualified organization conducting a game
41 14 night may do any of the following during the game night:
41 15 a. Charge an entrance fee or a fee to participate in the
41 16 games.
41 17 b. Award cash or merchandise prizes in any games of
41 18 skill, games of chance, casino=style games, or card games in
41 19 an aggregate amount not to exceed ten thousand dollars and
41 20 no participant shall win more than a total of five thousand
41 21 dollars.
41 22 c. Allow participants at the game night that do not have
41 23 a bona fide social relationship with the sponsor of the game
41 24 night.
41 25 d. Allow participants to wager their own funds and pay an
41 26 entrance or other fee for participation, but participants shall
41 27 not be allowed to expend more than a total of two hundred fifty
41 28 dollars for all fees and wagers.
41 29 3. Except as provided by section 99B.62, a person or
41 30 organization that has not been issued a qualified organization
41 31 license under section 99B.12B shall not be authorized to
41 32 conduct a game night as authorized by this section.
41 33 Sec. 40. NEW SECTION. 99B.41 Definitions.
41 34 For purposes of this subchapter, unless the context
41 35 otherwise requires:
42 1 1. "Public place" means an indoor or outdoor area, whether
42 2 privately or publicly owned, to which the public has access
42 3 by right or by invitation, expressed or implied, whether by
42 4 payment of money or not, but not a place when used exclusively
42 5 by one or more individuals for a private gathering or other
42 6 personal purpose.
42 7 2. "Social gambling" means an activity in which social games
42 8 are played between individuals for any sum of money or other
42 9 property of any value.
42 10 3. "Social games" or "social game" means card and parlor
42 11 games, including but not limited to poker, pinochle, pitch, gin
42 12 rummy, bridge, euchre, hearts, cribbage, dominoes, checkers,
42 13 chess, backgammon, pool, and darts. "Social games" do not
42 14 include casino=style games, except poker.
42 15 4. "Sports betting pool" or "pool" means a game in which a
42 16 participant wagers money for each chance to win based on the
42 17 outcome of a sports event or series of sports events where the
42 18 competitors in the sports event or series of sports events are
42 19 natural persons.
42 20 Sec. 41. NEW SECTION. 99B.42 Social gambling general
42 21 requirements.
42 22 1. Social gambling is lawful under section 99B.6, 99B.9, or
42 23 99B.12, when all of the following requirements are met:
42 24 a. The gambling occurs between two or more people who are
42 25 together for purposes other than social gambling. A social
42 26 relationship must exist beyond that apparent in the gambling
42 27 situation.
42 28 b. The gambling shall not take place on a gaming floor,
42 29 as defined in section 99F.1, licensed by the state racing and
42 30 gaming commission created in section 99D.5.
42 31 c. Concealed numbers or conversion charts are not used to
42 32 play any game.
42 33 d. A game is not adapted with any control device to permit
42 34 manipulation of the game by the operator in order to prevent a
42 35 player from winning or to predetermine who the winner will be.
43 1 e. The object of the game is attainable and possible to
43 2 perform under the rules stated from the playing position of the
43 3 player.
43 4 f. The game must be conducted in a fair and honest manner.
43 5 g. A person shall not receive or have any fixed or
43 6 contingent right to receive, directly or indirectly, any amount
43 7 wagered or bet or any portion of amounts wagered or bet, except
43 8 an amount which the person wins as a participant while playing
43 9 on the same basis as every other participant.
43 10 h. A cover charge, participation charge, or other charge
43 11 shall not be imposed upon a person for the privilege of
43 12 participating in or observing the social gambling, and a
43 13 rebate, discount, credit, or other method shall not be used
43 14 to discriminate between the charge for the sale of goods
43 15 or services to participants in the social gambling and the
43 16 charge for the sale of goods or services to nonparticipants.
43 17 Satisfaction of an obligation into which a member of an
43 18 organization enters to pay at regular periodic intervals a
43 19 sum fixed by that organization for the maintenance of that
43 20 organization is not a charge which is prohibited by this
43 21 paragraph.
43 22 i. A participant shall not win or lose more than a total
43 23 of two hundred dollars or equivalent consideration in one or
43 24 more games permitted by this subchapter at any time during any
43 25 period of twenty=four consecutive hours or over that entire
43 26 period.
43 27 j. A participant is not participating as an agent of another
43 28 person.
43 29 k. A representative of the department or a law enforcement
43 30 agency is immediately admitted, upon request, to the premises
43 31 with or without advance notice.
43 32 l. A person shall not engage in bookmaking on the premises.
43 33 2. The social gambling licensee is strictly accountable for
43 34 compliance with this section. Proof of an act constituting
43 35 a violation is grounds for revocation of the license issued
44 1 pursuant to section 99B.6 or 99B.9 if the licensee permitted
44 2 the violation to occur when the licensee knew or had reasonable
44 3 cause to know of the act constituting the violation.
44 4 3. A participant in a social game or pool which is not in
44 5 compliance with this section shall only be subject to a penalty
44 6 under section 99B.15 if the participant has knowledge of or
44 7 reason to know the facts constituting the violation.
44 8 4. The social gambling licensee, and every agent of the
44 9 licensee who is required by the licensee to exercise control
44 10 over the use of the premises, who knowingly permits or engages
44 11 in an act or omission which constitutes a violation of this
44 12 subchapter is subject to a penalty under section 99B.15. A
44 13 licensee has knowledge of an act or omission if any agent of
44 14 the licensee has knowledge of the act or omission.
44 15 Sec. 42. NEW SECTION. 99B.51 Definitions.
44 16 As used in this subchapter, unless the context otherwise
44 17 requires:
44 18 1. "Distributor" means a person who owns an electrical or
44 19 mechanical amusement device registered as provided in section
44 20 99B.53 that is offered for use at more than a single location
44 21 or premise.
44 22 2. "Manufacturer" means a person who originally produces,
44 23 or purchases an originally produced amusement device or
44 24 an originally produced motherboard that will be installed
44 25 into, an amusement device required to be registered under
44 26 this subchapter for the purposes of reselling such device or
44 27 motherboard.
44 28 3. "Owner" means a person who owns an operable amusement
44 29 device required to be registered under section 99B.53 at no
44 30 more than a single location or premise.
44 31 Sec. 43. NEW SECTION. 99B.52 Electrical or mechanical
44 32 amusement devices.
44 33 1. A person may own, possess, and offer for use at any
44 34 location an electrical or mechanical amusement device, except
44 35 for an amusement device required to be registered pursuant to
45 1 section 99B.53. If the provisions of this section and other
45 2 applicable provisions of this subchapter are complied with, the
45 3 use of an electrical or mechanical amusement device shall not
45 4 be deemed gambling. All electrical or mechanical amusement
45 5 devices shall comply with this section.
45 6 2. A prize of merchandise not exceeding fifty dollars in
45 7 value shall be awarded for use of an electrical or mechanical
45 8 amusement device. An electrical or mechanical amusement device
45 9 may be designed or adapted to award a prize of one or more
45 10 free games or portions of games without payment of additional
45 11 consideration by the participant.
45 12 3. A prize of cash shall not be awarded for use of an
45 13 electrical or mechanical amusement device.
45 14 4. An amusement device shall not be designed or adapted to
45 15 cause or to enable a person to cause the release of free games
45 16 or portions of games when designated as a potential award for
45 17 use of the device, and shall not contain any meter or other
45 18 measurement device for recording the number of free games or
45 19 portions of games which are awarded.
45 20 5. An amusement device shall not be designed or adapted to
45 21 enable a person using the device to increase the chances of
45 22 winning free games or portions of games by paying more than is
45 23 ordinarily required to play the game.
45 24 6. An award given for the use of an amusement device shall
45 25 only be redeemed on the premises where the device is located
45 26 and only for merchandise sold in the normal course of business
45 27 for the premises.
45 28 7. The department may determine any other requirements
45 29 by rule. Rules adopted pursuant to this section shall be
45 30 formulated in consultation with affected state agencies and
45 31 industry and consumer groups.
45 32 Sec. 44. NEW SECTION. 99B.53 Electrical or mechanical
45 33 amusement devices == registration required.
45 34 1. In addition to the requirements of section 99B.52,
45 35 an electrical or mechanical amusement device in operation
46 1 or distributed in this state that awards a prize where the
46 2 outcome is not primarily determined by skill or knowledge of
46 3 the operator shall be registered by the department as provided
46 4 in this section.
46 5 2. Except as provided in subsection 3, an electrical or
46 6 mechanical amusement device requiring registration may be
46 7 located on premises for which a class "A", class "B", class
46 8 "C", special class "C", or class "D" liquor control license has
46 9 been issued pursuant to chapter 123.
46 10 3. a. An electrical or mechanical amusement device
46 11 requiring registration may be located on premises for which a
46 12 class "B" or class "C" beer permit has been issued pursuant to
46 13 chapter 123, but the department shall not initially register
46 14 an electrical or mechanical amusement device to an owner or
46 15 distributor for a location for which a class "B" or class "C"
46 16 beer permit has been issued pursuant to chapter 123 on or after
46 17 April 28, 2004.
46 18 b. A distributor that owns an amusement device at a location
46 19 for which only a class "B" or class "C" beer permit has been
46 20 issued pursuant to chapter 123 shall not relocate an amusement
46 21 device registered as provided in this section to a location
46 22 other than a location for which a class "A", class "B", class
46 23 "C", special class "C", or class "D" liquor license has been
46 24 issued and shall not transfer, assign, sell, or lease an
46 25 amusement device registered as provided in this section to
46 26 another person for which only a class "B" or class "C" beer
46 27 permit has been issued pursuant to chapter 123 after April 28,
46 28 2004.
46 29 c. If ownership of the location changes, the class "B"
46 30 or class "C" beer permit does not lapse, and the device is
46 31 not removed from the location, the device may remain at the
46 32 location.
46 33 4. An electrical or mechanical amusement device required to
46 34 be registered and at a location for which only a class "B" or
46 35 class "C" beer permit has been issued pursuant to chapter 123
47 1 shall include on the device a security mechanism which prevents
47 2 the device from being operated by a person until action is
47 3 taken by the owner or owner's designee to allow the person to
47 4 operate the device.
47 5 5. No more than four electrical or mechanical amusement
47 6 devices registered as provided in this section shall be
47 7 permitted or offered for use in any single location or premises
47 8 meeting the requirements of this section.
47 9 6. The total number of electrical or mechanical amusement
47 10 devices registered by the department under this section shall
47 11 not exceed six thousand nine hundred twenty=eight.
47 12 7. Each person owning an electrical or mechanical amusement
47 13 device in this state shall submit annually an application
47 14 form designated by the department that shall contain the
47 15 information required by the department by rule and a fee of
47 16 twenty=five dollars for each device required to be registered.
47 17 If approved, the department shall issue an annual registration
47 18 tag.
47 19 8. A new amusement device registration tag shall be
47 20 obtained if electronic or mechanical components have been
47 21 adapted, altered, or replaced and such adaptation, alteration,
47 22 or replacement changes the operational characteristics of
47 23 the amusement device including but not limited to the game
47 24 being changed. The amusement device shall not be placed
47 25 into operation prior to obtaining a new amusement device
47 26 registration tag.
47 27 9. An electrical or mechanical amusement device required
47 28 to be registered under this section shall only be leased or
47 29 purchased from a manufacturer or distributor registered with
47 30 the department under section 99B.10A.
47 31 10. A person owning or leasing an electrical or mechanical
47 32 amusement device required to be registered by this section
47 33 shall display the registration tag as required by rules adopted
47 34 by the department.
47 35 11. A person owning or leasing an electrical or mechanical
48 1 amusement device required to be registered by this section
48 2 shall not allow the electrical or mechanical amusement device
48 3 to be operated or made available for operation with an expired
48 4 registration.
48 5 12. A person or employee of a person owning or leasing
48 6 an electrical or mechanical amusement device required to be
48 7 registered by this section shall not advertise or promote the
48 8 availability of the device to the public as anything other than
48 9 an electrical or mechanical amusement device pursuant to rules
48 10 adopted by the department.
48 11 13. A person owning or leasing an electrical or mechanical
48 12 amusement device required to be registered by this section
48 13 shall not relocate and place into operation an amusement device
48 14 in any location other than a location which has been issued
48 15 an appropriate liquor control license in good standing and to
48 16 which the device has been appropriately registered with the
48 17 department.
48 18 14. A counting mechanism which establishes the volume of
48 19 business of the electrical or mechanical amusement device shall
48 20 be included on each device required to be registered by this
48 21 section. The department and the department of public safety
48 22 shall have immediate access to the information provided by the
48 23 counting mechanism.
48 24 15. An electrical or mechanical amusement device required
48 25 to be registered as provided by this section shall not be a
48 26 gambling device, as defined in section 725.9, or a device that
48 27 plays poker, blackjack, or keno.
48 28 Sec. 45. NEW SECTION. 99B.54 Electrical or mechanical
48 29 amusement devices == criminal penalties.
48 30 1. A person who violates any provision of section 99B.52 or
48 31 99B.53, except as specified in subsection 2, commits a serious
48 32 misdemeanor.
48 33 2. A person who violates any provision of section 99B.52,
48 34 subsection 2 or 6; or section 99B.53, subsection 4, 8, 10, 11,
48 35 12, or 13, shall be subject to the following:
49 1 a. For a first offense under an applicable subsection, the
49 2 person commits a simple misdemeanor, punishable as a scheduled
49 3 violation pursuant to section 805.8C, subsection 4, paragraph
49 4 "b".
49 5 b. For a second or subsequent offense under the same
49 6 applicable subsection, the person commits a serious
49 7 misdemeanor.
49 8 3. Notwithstanding any provision of section 99B.52 or
49 9 99B.53 to the contrary, the following shall apply:
49 10 a. An individual other than an owner or distributor of an
49 11 amusement device may operate an amusement device, whether or
49 12 not the amusement device is owned, possessed, or offered for
49 13 use in compliance with section 99B.52 or 99B.53.
49 14 b. A distributor shall not be liable for a violation of
49 15 section 99B.52 or 99B.53 unless the distributor or an employee
49 16 of the distributor intentionally violates a provision of
49 17 section 99B.52 or 99B.53.
49 18 Sec. 46. NEW SECTION. 99B.62 Game nights == licensing
49 19 exceptions.
49 20 1. A person other than a qualified organization may lawfully
49 21 conduct a game night without a license, and may award cash or
49 22 merchandise prizes, under the following conditions:
49 23 a. A bona fide social, employment, or trade or professional
49 24 association relationship exists between the sponsors and the
49 25 participants.
49 26 b. The participants pay no consideration of any nature,
49 27 either directly or indirectly, to participate in the games.
49 28 c. All money, play money, or other items of no intrinsic
49 29 value which may be wagered are provided to the participant
49 30 free, and the sponsor conducting the game receives no
49 31 consideration, either directly or indirectly, other than
49 32 goodwill.
49 33 d. The games may be conducted at any location, except at a
49 34 fair or a location for which a license is required pursuant to
49 35 section 99B.3.
50 1 e. During the entire time activities permitted by this
50 2 subsection are being engaged in, no other gambling is engaged
50 3 in at the same location.
50 4 2. A person or an organization may sponsor one or more game
50 5 nights using play money for participation by students without
50 6 the person or organization obtaining a license otherwise
50 7 required by this chapter if the person or organization obtains
50 8 prior approval for the game night from the board of directors
50 9 of the accredited public school or the authorities in charge of
50 10 the nonpublic school accredited by the state board of education
50 11 for whose students the game night is to be held.
50 12 3. A gambling device intended for use or used as provided in
50 13 this section is exempt from the provisions of section 725.9,
50 14 subsection 2.
50 15 Sec. 47. REPEAL. Sections 99B.2, 99B.4, 99B.5, 99B.7,
50 16 99B.8, 99B.9A, 99B.10, 99B.16, and 99B.18, Code 2015, are
50 17 repealed.
50 18 Sec. 48. LICENSED QUALIFIED ORGANIZATION == INITIAL
50 19 ANNUAL REPORT. Notwithstanding any provision of section
50 20 99B.16A, subsection 3, to the contrary, the first annual
50 21 report submitted by a licensed qualified organization to the
50 22 department of inspections and appeals after July 1, 2015, shall
50 23 be submitted by January 31, 2017, and shall cover the period of
50 24 July 1, 2015, through December 31, 2016.
50 25 DIVISION II
50 26 COORDINATING AMENDMENTS
50 27 Sec. 49. Section 99.1A, unnumbered paragraph 2, Code 2015,
50 28 is amended to read as follows:
50 29 The provisions of this section do not apply to games of
50 30 skill, games of chance, or raffles social and charitable
50 31 gambling conducted pursuant to chapter 99B or to devices lawful
50 32 under section 99B.10 99B.52 or 99B.53.
50 33 Sec. 50. Section 99D.8, unnumbered paragraph 1, Code 2015,
50 34 is amended to read as follows:
50 35 A qualifying organization, as defined in section
51 1 513(d)(2)(C) of the Internal Revenue Code, as defined in
51 2 section 422.3, exempt from federal income taxation under
51 3 sections 501(c)(3), 501(c)(4), or 501(c)(5) of the Internal
51 4 Revenue Code or a nonprofit corporation organized under the
51 5 laws of this state, whether or not it is exempt from federal
51 6 income taxation, which is organized to promote those purposes
51 7 enumerated in section 99B.7, subsection 3, paragraph "b"
51 8 distribute funds for educational, civic, public, charitable,
51 9 patriotic, or religious uses, as defined in section 99B.1,
51 10 or which regularly conducts an agricultural and educational
51 11 fair or exposition for the promotion of the horse, dog, or
51 12 other livestock breeding industries of the state, or an agency,
51 13 instrumentality, or political subdivision of the state, may
51 14 apply to the commission for a license to conduct horse or dog
51 15 racing. The application shall be filed with the administrator
51 16 of the commission at least sixty days before the first day
51 17 of the horse race or dog race meeting which the organization
51 18 proposes to conduct, shall specify the day or days when and
51 19 the exact location where it proposes to conduct racing, and
51 20 shall be in a form and contain information as the commission
51 21 prescribes.
51 22 Sec. 51. Section 99F.5, subsection 1, Code 2015, is amended
51 23 to read as follows:
51 24 1. A qualified sponsoring organization may apply to the
51 25 commission for a license to conduct gambling games on an
51 26 excursion gambling boat or gambling structure as provided in
51 27 this chapter. A person may apply to the commission for a
51 28 license to operate an excursion gambling boat. An operating
51 29 agreement entered into on or after May 6, 2004, between
51 30 a qualified sponsoring organization and an operator of an
51 31 excursion gambling boat or gambling structure shall provide for
51 32 a minimum distribution by the qualified sponsoring organization
51 33 for educational, civic, public, charitable, patriotic, or
51 34 religious uses as defined in section 99B.7, subsection 3,
51 35 paragraph "b" 99B.1, that averages at least three percent
52 1 of the adjusted gross receipts for each license year. The
52 2 application shall be filed with the administrator of the
52 3 commission at least ninety days before the first day of the
52 4 next excursion season as determined by the commission, shall
52 5 identify the excursion gambling boat upon which gambling games
52 6 will be authorized, shall specify the exact location where
52 7 the excursion gambling boat will be docked, and shall be in
52 8 a form and contain information as the commission prescribes.
52 9 The minimum capacity of an excursion gambling boat or gambling
52 10 structure is two hundred fifty persons.
52 11 Sec. 52. Section 99F.6, subsection 4, paragraph a,
52 12 subparagraph (2), Code 2015, is amended to read as follows:
52 13 (2) A qualified sponsoring organization licensed to operate
52 14 gambling games under this chapter shall distribute the receipts
52 15 of all gambling games, less reasonable expenses, charges,
52 16 taxes, fees, and deductions allowed under this chapter, as
52 17 winnings to players or participants or shall distribute the
52 18 receipts for educational, civic, public, charitable, patriotic,
52 19 or religious uses as defined in section 99B.7, subsection 3,
52 20 paragraph "b" 99B.1. However, a licensee to conduct gambling
52 21 games under this chapter shall, unless an operating agreement
52 22 for an excursion gambling boat otherwise provides, distribute
52 23 at least three percent of the adjusted gross receipts for
52 24 each license year for educational, civic, public, charitable,
52 25 patriotic, or religious uses as defined in section 99B.7,
52 26 subsection 3, paragraph "b" 99B.1. However, if a licensee
52 27 who is also licensed to conduct pari=mutuel wagering at a
52 28 horse racetrack has unpaid debt from the pari=mutuel racetrack
52 29 operations, the first receipts of the gambling games operated
52 30 within the racetrack enclosure less reasonable operating
52 31 expenses, taxes, and fees allowed under this chapter shall be
52 32 first used to pay the annual indebtedness.
52 33 Sec. 53. Section 331.304, subsection 2, Code 2015, is
52 34 amended by striking the subsection.
52 35 Sec. 54. Section 423.3, subsection 62, Code 2015, is amended
53 1 to read as follows:
53 2 62. The sales price from the sale of raffle tickets for a
53 3 raffle licensed and conducted at a fair pursuant to section
53 4 99B.5 99B.24.
53 5 Sec. 55. Section 805.8C, subsection 4, Code 2015, is amended
53 6 to read as follows:
53 7 4. Electrical and or mechanical amusement device violations.
53 8 a. For violations of legal age for operating an electrical
53 9 and or mechanical amusement device required to be registered as
53 10 provided in section 99B.10, subsection 1, paragraph "f" 99B.53,
53 11 pursuant to section 99B.10C, subsection 1, the scheduled fine
53 12 is two hundred fifty dollars. Failure to pay the fine by a
53 13 person under the age of eighteen shall not result in the person
53 14 being detained in a secure facility.
53 15 b. For first offense violations concerning electrical and
53 16 or mechanical amusement devices as provided in section 99B.10,
53 17 subsection 3 99B.54, subsection 2, the scheduled fine is two
53 18 hundred fifty dollars.
53 19 DIVISION III
53 20 CODE EDITOR DIRECTIVES
53 21 Sec. 56. CODE EDITOR DIRECTIVE.
53 22 1. The Code editor is directed to make the following
53 23 transfers:
53 24 a. Section 99B.3 to section 99B.31.
53 25 b. Section 99B.5A to section 99B.22.
53 26 c. Section 99B.6 to section 99B.43.
53 27 d. Section 99B.7A to section 99B.32.
53 28 e. Section 99B.7B to section 99B.27.
53 29 f. Section 99B.9 to section 99B.44.
53 30 g. Section 99B.10A to section 99B.56.
53 31 h. Section 99B.10B to section 99B.55.
53 32 i. Section 99B.10C to section 99B.57.
53 33 j. Section 99B.10D to section 99B.58.
53 34 k. Section 99B.11 to section 99B.61.
53 35 l. Section 99B.11A, as enacted in this Act, to section
54 1 99B.11.
54 2 m. Section 99B.12 to section 99B.45.
54 3 n. Section 99B.12A to section 99B.23.
54 4 o. Section 99B.12B, as enacted in this Act, to section
54 5 99B.12.
54 6 p. Section 99B.13 to section 99B.2.
54 7 q. Section 99B.13A, as enacted in this Act, to section
54 8 99B.13.
54 9 r. Section 99B.14 to section 99B.3.
54 10 s. Section 99B.14A, as enacted in this Act, to section
54 11 99B.14.
54 12 t. Section 99B.15 to section 99B.4.
54 13 u. Section 99B.15A, as enacted in this Act, to section
54 14 99B.15.
54 15 v. Section 99B.16A, as enacted in this Act, to section
54 16 99B.16.
54 17 w. Section 99B.17 to section 99B.5.
54 18 x. Section 99B.19 to section 99B.6.
54 19 y. Section 99B.20 to section 99B.7.
54 20 z. Section 99B.21 to section 99B.8.
54 21 aa. Section 99B.21A, as enacted in this Act, to section
54 22 99B.21.
54 23 2. The Code editor is directed to create seven new
54 24 subchapters in chapter 99B as follows:
54 25 a. Subchapter I shall be entitled "general provisions" and
54 26 include sections 99B.1 through 99B.10.
54 27 b. Subchapter II shall be entitled "qualified
54 28 organizations" and include sections 99B.11 through 99B.20.
54 29 c. Subchapter III shall be entitled "charitable gambling"
54 30 and include sections 99B.21 through 99B.30.
54 31 d. Subchapter IV shall be entitled "other activities
54 32 requiring licensure" and include sections 99B.31 through
54 33 99B.40.
54 34 e. Subchapter V shall be entitled "social gambling" and
54 35 include sections 99B.41 through 99B.50.
55 1 f. Subchapter VI shall be entitled "electrical or
55 2 mechanical amusement devices" and include sections 99B.51
55 3 through 99B.60.
55 4 g. Subchapter VII shall be entitled "activities not
55 5 requiring licensure" and include sections 99B.61 and 99B.62.
55 6 3. The Code editor may modify subchapter titles if necessary
55 7 and is directed to correct internal references in the Code as
55 8 necessary due to enactment of this section.
55 9 EXPLANATION
55 10 The inclusion of this explanation does not constitute agreement with
55 11 the explanation's substance by the members of the general assembly.
55 12 This bill provides for the reorganization and modification
55 13 of provisions in Code chapter 99B governing games of skill or
55 14 chance, and raffles.
55 15 DIVISION I == SOCIAL AND CHARITABLE GAMBLING PROVISIONS.
55 16 The bill makes a variety of changes to Code section 99B.1
55 17 (definitions). The bill eliminates definitions for
55 18 "authorized", "controlling shareholder", "eligible applicant",
55 19 "posted", and "unrelated entity". New definitions for
55 20 "build=up or pyramid", "calendar raffles", "casino=style
55 21 games", "gambling", "game nights", and "licensed charitable
55 22 organization" are added. In addition, current definitions
55 23 or descriptions in Code section 99B.7 for "qualified
55 24 organizations", "charitable uses", "educational, civic, public,
55 25 charitable, patriotic, or religious uses", and "public uses"
55 26 are moved to Code section 99B.1. Existing definitions in Code
55 27 section 99B.1 are also modified. The definition for "amusement
55 28 concession" is amended to reference the games authorized and
55 29 not the location of where the games are played. "Bingo" is
55 30 amended to allow symbols or pictures to be used in playing
55 31 bingo and "bingo occasion" is amended to specify when a bingo
55 32 occasion ends. "Merchandise" is amended to provide that it
55 33 includes goods or services bought or sold in the regular course
55 34 of business and that a gift card not redeemable for cash is
55 35 considered merchandise. Other definitions in Code section
56 1 99B.1 are moved and made applicable to a subchapter of the
56 2 reorganized Code chapter.
56 3 Code section 99B.3, concerning amusement concessions, is
56 4 amended. The Code section, consistent with the change in the
56 5 definition of amusement concession, focuses on the type of
56 6 gambling activity allowed and eliminates existing locational
56 7 requirements for the activity. The Code section is amended
56 8 to increase the maximum value of prizes from $50 to $100 and
56 9 increases the maximum cost to play a game from $3 to $5. The
56 10 Code section is amended to specify what constitutes and does
56 11 not constitute allowable repurchase of prizes.
56 12 Code section 99B.4, providing for permitted locations of
56 13 amusement concessions, is repealed.
56 14 Code section 99B.5 (raffles conducted at a fair) is
56 15 repealed. The bill consolidates provisions governing raffles
56 16 in new Code section 99B.24.
56 17 Code section 99B.6 (games where liquor or beer is sold) is
56 18 rewritten by the bill. Restrictions on the locations where
56 19 the games may be conducted are unchanged and allowable games
56 20 are defined as social gambling. Provisions of existing Code
56 21 section 99B.6 applicable to lawful social gambling that may
56 22 occur between individuals or in public places in addition to
56 23 locations where liquor or beer is sold are moved to new Code
56 24 section 99B.42.
56 25 Code section 99B.7 (games conducted by qualified
56 26 organizations) is repealed. Several provisions of the Code
56 27 section are moved and modified in new Code sections governing
56 28 qualified organization licensing as provided in the bill.
56 29 Code section 99B.7A (manufacturers and distributors of
56 30 bingo equipment and supplies == license) is amended to apply
56 31 to manufacturers and distributors of electronic raffle
56 32 systems. In addition, the amended Code section provides for
56 33 a single annual license for manufacturers and distributors of
56 34 $1,000 instead of a $1,000 manufacturers license and a $500
56 35 distributor license.
57 1 Code section 99B.7B (card game tournaments conducted by
57 2 qualified organizations representing veterans) is amended to
57 3 provide that a qualified organization representing veterans
57 4 shall apply for a qualified organization license under new Code
57 5 section 99B.12B to conduct a card game tournament.
57 6 Code section 99B.8 (annual game night) is repealed.
57 7 Provisions governing licensed and unlicensed game nights are
57 8 included in new Code sections 99B.26 and 99B.62.
57 9 Code section 99B.9 (gambling in public places) is rewritten
57 10 by the bill. Current provisions relative to the license fee
57 11 and the public places in which social gambling may be conducted
57 12 are unchanged. Provisions of existing Code section 99B.9
57 13 applicable to lawful social gambling that may occur between
57 14 individuals or where liquor or beer is sold are moved to new
57 15 Code section 99B.42.
57 16 Code section 99B.9A, concerning exceptions for qualified
57 17 organizations to conduct bingo in certain locations, is
57 18 repealed.
57 19 Code section 99B.10, concerning electrical and mechanical
57 20 amusement devices, is repealed. New Code sections 99B.52,
57 21 99B.53, and 99B.54, all governing electrical or mechanical
57 22 amusement devices, include provisions contained in current Code
57 23 section 99B.10.
57 24 Code section 99B.10A, concerning registration of electrical
57 25 and mechanical amusement device manufacturers, distributors,
57 26 and for=profit owners, is amended by eliminating specific
57 27 reference to a manufacturer's representation in the category of
57 28 persons required to be registered under this Code section.
57 29 Code section 99B.10B is amended to provide that a first
57 30 offense of awarding a cash prize of $50 or less in violation
57 31 of the provisions governing electrical or mechanical amusement
57 32 devices is subject only to a civil penalty of $250 and not to
57 33 any additional penalties such as the suspension or revocation
57 34 of any liquor control license issued. In addition, the section
57 35 is amended to allow service for actions relative to denial,
58 1 suspension, or revocation of a registration of an electrical or
58 2 mechanical amusement device by means authorized by Code chapter
58 3 17A and to permit decisions relative to these actions to be
58 4 delivered by electronic mail.
58 5 Code sections 99B.10C and 99B.10D are amended to reflect
58 6 updated internal code references in Code chapter 99B.
58 7 Code section 99B.11, concerning bona fide contests, is
58 8 amended by providing categories that include current bona fide
58 9 contests and by then allowing contests that fit each of the
58 10 categories. The bill also allows, as an additional category,
58 11 trivia and trading card contests.
58 12 New Code section 99B.11A provides definitions applicable
58 13 to qualified organizations and charitable gambling. New
58 14 definitions include "electronic bingo equipment" and several
58 15 categories of raffles based on the value of prizes that may be
58 16 awarded. The new raffle definitions are "large raffle", "small
58 17 raffle", "very large raffle", and "very small raffle".
58 18 Code section 99B.12 (games between individuals) is stricken
58 19 and rewritten. The changes primarily eliminate provisions
58 20 applicable to social gambling generally that are moved to new
58 21 Code section 99B.42.
58 22 New Code section 99B.12B provides for qualified organization
58 23 licenses. The Code section identifies provisions generally
58 24 applicable to all licenses issued to a qualified organization
58 25 and provides for the fees and applicable games that may be
58 26 conducted pursuant to a two=year, one=year, 180=day, 90=day,
58 27 and 14=day qualified organization license. Current provisions
58 28 in Code section 99B.7 relative to licenses for public and
58 29 nonpublic schools and for school districts are moved to this
58 30 new Code section.
58 31 New Code section 99B.13A provides for general requirements
58 32 applicable to any gambling conducted by a qualified
58 33 organization. The requirements include provisions on
58 34 displaying the license, where gambling activities under
58 35 the license may be conducted, participation in gambling
59 1 requirements, and game=specific requirements.
59 2 New Code section 99B.14A provides for the distribution of
59 3 proceeds by a licensed qualified organization. Most provisions
59 4 governing distribution of proceeds are moved from current Code
59 5 section 99B.7. However, the bill provides that reasonable
59 6 expenses that may be retained by a licensed qualified
59 7 organization shall not exceed 40 percent of net receipts.
59 8 Current law limits reasonable expenses to 25 percent of net
59 9 receipts.
59 10 Code section 99B.15, providing for the applicability of the
59 11 Code chapter and penalties, is stricken and rewritten. The
59 12 Code section provides that a person who knowingly fails to
59 13 comply with the requirements of Code chapter 99B commits a
59 14 serious misdemeanor and that a person who intentionally files a
59 15 false or fraudulent report or application commits a fraudulent
59 16 practice under Code chapter 714.
59 17 New Code section 99B.15A provides general provisions
59 18 governing prizes awarded by a licensed charitable organization.
59 19 The Code section provides that merchandise prizes shall not
59 20 exceed $10,000 and cash can only be awarded in bingo and
59 21 raffles.
59 22 Code section 99B.16, concerning the criminal penalty for a
59 23 willful failure to maintain or submit records, is repealed.
59 24 Criminal penalties relative to reports and applications are
59 25 moved to Code section 99B.15.
59 26 Code section 99B.16A provides for records and reports
59 27 required of licensed qualified organizations. The Code section
59 28 requires an annual report to be submitted by January 31 for the
59 29 prior calendar year. The bill provides that the initial annual
59 30 report shall be submitted by January 31, 2017, for the period
59 31 beginning July 1, 2015, and ending December 31, 2016.
59 32 Code section 99B.17, providing that gambling on credit is
59 33 unlawful and including an exception, is rewritten by the bill.
59 34 The rewritten Code section allows payment by check, electronic
59 35 check, or debit card for gambling activities under Code
60 1 chapter 99B, except that only cash payments are allowed for
60 2 social gambling, registered amusement devices, and amusement
60 3 concessions not at a permanent location.
60 4 Code section 99B.18 (company games) is repealed. Games
60 5 authorized under this Code section are moved to new Code
60 6 section 99B.62 governing unlicensed game nights.
60 7 New Code section 99B.21A establishes requirements for a
60 8 licensed qualified organization conducting bingo. The Code
60 9 section provides operational requirements, prize requirements
60 10 as an exception to the general prize requirements in new
60 11 Code section 99B.15A, equipment requirements, and accounting
60 12 requirements. Most of the accounting requirements are moved
60 13 from Code section 99B.2 and other requirements are moved from
60 14 Code section 99B.7. As far as prizes, the new Code section
60 15 limits cash prizes and merchandise prizes to $250 per game of
60 16 bingo instead of $100 as currently provided in Code section
60 17 99B.7. For jackpot bingo games, the new Code section allows
60 18 the prize to start at no more $500, instead of the current
60 19 $300.
60 20 New Code section 99B.24 establishes requirements for a
60 21 licensed qualified organization conducting a raffle. The
60 22 Code section establishes operational requirements relative
60 23 to conducting a raffle and authorizes a licensed qualified
60 24 organization to conduct one very large raffle per year upon
60 25 submission of an additional fee. The bill defines "very large
60 26 raffle" as a raffle where the cumulative value of cash and
60 27 prizes is more than $100,000 but not more than $200,000 or
60 28 the prize is real property. The bill also allows a qualified
60 29 organization to conduct one very small raffle per calendar
60 30 year without a license and without adhering to the reporting
60 31 requirements of new Code section 99B.16A. A "very small
60 32 raffle" is defined in the bill as a raffle where the cumulative
60 33 value of the cash prize or prizes is $1,000 or less and the
60 34 value of all entries sold is $1,000 or less, or the cumulative
60 35 value of the donated merchandise prize or prizes is $5,000 or
61 1 less and the value of all entries sold is $5,000 or less.
61 2 New Code section 99B.25 allows a licensed qualified
61 3 organization with a two=year license to conduct a raffle
61 4 using an electronic raffle system. The bill allows only one
61 5 electronic raffle per calendar day and specifies how the
61 6 raffle is to be conducted and the information necessary on an
61 7 electronic raffle receipt.
61 8 New Code section 99B.26 allows a licensed qualified
61 9 organization to conduct one game night per calendar year.
61 10 Current provisions specific to game nights conducted by a
61 11 licensed qualified organization in Code section 99B.8 are moved
61 12 to this new Code section. In addition, the expanded prize
61 13 authorization for certain qualified organizations, such as for
61 14 veterans and voluntary emergency services providers, in current
61 15 Code section 99B.8, subsection 6, is made applicable to all
61 16 licensed qualified organizations.
61 17 New Code section 99B.41 provides definitions specific to
61 18 social gambling. The definition for "social games" is moved
61 19 from current Code section 99B.12, and the definition for
61 20 "sports betting pool" is moved from the definition of "pool"
61 21 in current Code section 99B.6 and amended to allow wagering
61 22 on the outcome of a sports event or sports events where the
61 23 competitors are natural persons.
61 24 New Code section 99B.42 provides general requirements
61 25 applicable to social gambling. Requirements in current Code
61 26 sections 99B.6, 99B.9, and 99B.12 that are applicable to social
61 27 gambling regardless of location are generally moved to this new
61 28 Code section. However, the bill increases from $50 to $200 the
61 29 amount a participant may win or lose at social gambling during
61 30 a 24=hour period.
61 31 New Code section 99B.51 includes definitions of
61 32 "distributor", "manufacturer", and "owner", for purposes of
61 33 electrical or mechanical amusement devices. The definitions
61 34 are moved from current Code section 99B.1. The definition
61 35 of "manufacturer" is also modified to include a person who
62 1 produces or purchases an originally produced motherboard.
62 2 New Code section 99B.52 provides general requirements
62 3 concerning all electrical or mechanical amusement devices.
62 4 Current provisions in Code section 99B.10, subsection 1,
62 5 paragraphs "a" through "d", "k", and "o" are moved to this new
62 6 Code section.
62 7 New Code section 99B.53 provides additional requirements for
62 8 electrical or mechanical amusement devices that are required
62 9 to be registered. Current provisions in Code section 99B.10,
62 10 subsection 1, governing amusement devices that are required to
62 11 be registered are moved to this new Code section. However,
62 12 the bill provides that all persons, and not just qualified
62 13 organizations, that are authorized to offer for use registered
62 14 electrical or mechanical amusement devices may offer for use no
62 15 more than four devices in any single location.
62 16 New Code section 99B.54 establishes criminal penalties for
62 17 violations of provisions concerning electrical or mechanical
62 18 amusement devices. The criminal offenses are similar to
62 19 current provisions in Code section 99B.10, subsections 2
62 20 through 5.
62 21 New Code section 99B.62 allows game nights to be conducted
62 22 without a license under certain circumstances. Current Code
62 23 section 99B.18, allowing company games, is moved to this new
62 24 Code section and is expanded to allow all persons to also hold
62 25 a casino night without a license subject to the requirements of
62 26 the new Code section. Current Code section 99B.8, subsection
62 27 4, concerning school game nights, is moved to this new Code
62 28 section.
62 29 DIVISION II == COORDINATING AMENDMENTS. Code section 99.1A,
62 30 concerning nuisances, is amended to refer to Code chapter 99B
62 31 as social and charitable gambling and to refer to amusement
62 32 devices as authorized by new Code sections 99B.52 and 99B.53.
62 33 Code section 99D.8, concerning qualified organization for
62 34 purposes of horse or dog racing licenses, is amended to provide
62 35 that the purposes of the organization shall be for educational,
63 1 civic, public, charitable, patriotic, or religious uses, as
63 2 defined in Code section 99B.1.
63 3 Code sections 99F.5 and 99F.6 are amended to provide that
63 4 the definition of "educational, civic, public, charitable,
63 5 patriotic, or religious uses" is located in Code section 99B.1.
63 6 Code section 331.304, concerning county powers, is amended
63 7 by striking the provision concerning the power to determine
63 8 locations of amusement concessions in accordance with current
63 9 Code section 99B.4 as Code section 99B.4 is repealed by the
63 10 bill.
63 11 Code section 423.3, subsection 62, concerning exemptions
63 12 from sales and use taxes, is amended to provide that the
63 13 exemption is for raffles licensed pursuant to new Code section
63 14 99B.24 and only conducted at a fair. Current law references
63 15 the current Code section, repealed in the bill, that limited
63 16 the exemption to raffles conducted at a fair.
63 17 Code section 805.8C, subsection 4, concerning scheduled
63 18 violations relating to amusement devices, is amended to correct
63 19 internal references to the applicable amusement device.
63 20 DIVISION III == CODE EDITOR DIRECTIVES. This division
63 21 directs the Code editor to transfer existing and new Code
63 22 sections in Code chapter 99B. The division further directs the
63 23 Code editor to reorganize the Code chapter by creating seven
63 24 new subchapters, containing the transferred Code sections,
63 25 and entitled "general provisions", "qualified organizations",
63 26 "charitable gambling", "other activities requiring licensure",
63 27 "social gambling", "electrical or mechanical amusement
63 28 devices", and "activities not requiring licensure".
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