House File 408
HOUSE FILE
BY LUKAN
Passed House, Date Passed Senate, Date
Vote: Ayes Nays Vote: Ayes Nays
Approved
A BILL FOR
1 An Act relating to bingo operations.
2 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
3 TLSB 2650HH 80
4 ec/pj/5
PAG LIN
1 1 Section 1. Section 99B.7, subsection 1, paragraph c,
1 2 unnumbered paragraph 1, Code 2003, is amended to read as
1 3 follows:
1 4 Cash or merchandise prizes may be awarded in the game of
1 5 bingo and, except as otherwise provided in this paragraph,
1 6 shall not exceed one hundred dollars. Merchandise prizes may
1 7 be awarded in the game of bingo, but the actual retail value
1 8 of the prize, or if the prize consists of more than one item,
1 9 unit or part, the aggregate retail value of all items, units
1 10 or parts, shall not exceed the maximum provided by this
1 11 paragraph. Bingo games allowing for a trade=in of a bingo
1 12 card during a bingo game for not more than fifty cents a
1 13 trade=in may be conducted. A jackpot bingo game may be
1 14 conducted once twice during any twenty=four hour period in
1 15 which the prize may begin at not more than three hundred
1 16 dollars in cash or actual retail value of merchandise prizes
1 17 and may be increased by not more than one hundred dollars
1 18 after each bingo occasion to a maximum prize of one thousand
1 19 dollars for the first jackpot bingo game and five thousand
1 20 dollars for the second jackpot bingo game. However, the cost
1 21 of play in a jackpot bingo game shall not be increased and the
1 22 jackpot shall not amount to more than eight hundred five
1 23 thousand dollars in cash or actual retail value of merchandise
1 24 prizes. A jackpot bingo game is not prohibited by paragraph
1 25 "h". A bingo occasion shall not last for longer than four
1 26 consecutive hours. A qualified organization shall not hold
1 27 more than fourteen bingo occasions per month. Bingo occasions
1 28 held under a limited license shall not be counted in
1 29 determining whether a qualified organization has conducted
1 30 more than fourteen bingo occasions per month, nor shall bingo
1 31 occasions held under a limited license be limited to four
1 32 consecutive hours. With the exception of a limited license
1 33 bingo, no more than three bingo occasions per week shall be
1 34 held within a structure or building and only one person
1 35 licensed to conduct games under this section may hold bingo
2 1 occasions within a structure or building. A licensed
2 2 qualified organization shall not conduct free games.
2 3 Sec. 2. Section 99B.7, subsection 2, paragraph a, Code
2 4 2003, is amended to read as follows:
2 5 a. The Except for purposes of bingo, rent imposed and
2 6 collected shall not be a percentage of or otherwise related to
2 7 the amount of the receipts of the game or raffle.
2 8 Sec. 3. Section 422.43, subsection 2, Code 2003, is
2 9 amended to read as follows:
2 10 2. There Except as provided in section 422.45, subsection
2 11 35A, there is imposed a tax of five percent upon the gross
2 12 receipts derived from the operation of all forms of amusement
2 13 devices and games of skill, games of chance, raffles, and
2 14 bingo games as defined in chapter 99B, operated or conducted
2 15 within the state, the tax to be collected from the operator in
2 16 the same manner as for the collection of taxes upon the gross
2 17 receipts of tickets or admission as provided in this section.
2 18 The tax shall also be imposed upon the gross receipts derived
2 19 from the sale of lottery tickets or shares pursuant to chapter
2 20 99E. The tax on the lottery tickets or shares shall be
2 21 included in the sales price and distributed to the general
2 22 fund as provided in section 99E.10.
2 23 Sec. 4. Section 422.45, Code 2003, is amended by adding
2 24 the following new subsection:
2 25 NEW SUBSECTION. 35A. Gross receipts derived from bingo
2 26 games as defined in chapter 99B and conducted by a qualified
2 27 organization as defined in section 99B.1.
2 28 EXPLANATION
2 29 This bill makes changes relating to the conducting of
2 30 bingo.
2 31 Code section 99B.7, subsection 1, is amended to provide
2 32 that bingo games allowing for a trade=in of a card for not
2 33 more than 50 cents may be conducted. In addition, the bill
2 34 permits two jackpot bingo games during a 24=hour period and
2 35 authorizes a maximum prize of $1,000 for the first jackpot
3 1 bingo game and $5,000 for the second jackpot bingo game.
3 2 Under current law, only one jackpot game is authorized with a
3 3 maximum prize of $800.
3 4 Code section 99B.7, subsection 2, governing the operation
3 5 of games of chance on leased or rented property is amended to
3 6 provide that for bingo, a qualified organization may rent
3 7 premises other than from a licensed qualified organization and
3 8 pay rent expressed as a percentage of or amount based upon
3 9 receipts from the bingo game. Under current law, premises can
3 10 be rented from a nonlicensed organization but rent cannot be
3 11 in an amount based upon receipts of the game or raffle.
3 12 The bill also exempts gross receipts derived from bingo
3 13 games that are conducted by a licensed qualified organization
3 14 from sales tax.
3 15 LSB 2650HH 80
3 16 ec/pj/5