H.F. _____ Section 1. NEW SECTION . 99D.9A Exemption from live racing 1 —— fee. 2 1. A licensee authorized to operate a pari-mutuel dog 3 racetrack and to conduct gambling games pursuant to section 4 99F.6 as of January 1, 2010, may, upon written notification 5 to the commission and agreement to pay a racing exemption fee 6 to the commission as provided in this section, discontinue 7 scheduling performances of live dog races at the racetrack 8 and maintain a license under this chapter for purposes of 9 permitting pari-mutuel wagering on simultaneously telecast dog 10 races. 11 2. For purposes of this section, the racing exemption fee 12 shall be determined and paid as follows: 13 a. For the pari–mutuel dog racetrack located in Dubuque 14 county, the payment of a total of ten million dollars, payable 15 in two equal installments in December and June of the fiscal 16 year beginning July 1, 2010, or the payment of three million 17 dollars each January in the seven consecutive calendar years 18 commencing January 2011. 19 b. For the pari–mutuel dog racetrack located in 20 Pottawattamie county, the payment of a total of twenty-five 21 million dollars, payable in two equal installments in December 22 and June of the fiscal year beginning July 1, 2010, or the 23 payment of seven million dollars each January in the seven 24 consecutive calendar years commencing January 2011. 25 3. The racing exemption fee shall be paid to the commission 26 for deposit in the general fund of the state. 27 Sec. 2. Section 99D.11, subsection 6, paragraph b, Code 28 Supplement 2009, is amended to read as follows: 29 b. (1) The commission may authorize the licensee to 30 simultaneously telecast within the racetrack enclosure, for 31 the purpose of pari-mutuel wagering, a horse or dog race 32 licensed by the racing authority of another state. It is 33 the responsibility of each licensee to obtain the consent of 34 appropriate racing officials in other states as required by 35 -1- LSB 5786YC (4) 83 ec/rj 1/ 4

H.F. _____ the federal Interstate Horseracing Act of 1978, 15 U.S.C. 1 § 3001-3007, to televise races for the purpose of conducting 2 pari-mutuel wagering. 3 (2) A licensee may also obtain the permission of a person 4 licensed by the commission to conduct horse or dog races 5 in this state to televise races conducted by that person 6 for the purpose of conducting pari-mutuel racing. However, 7 arrangements made by a licensee to televise any race for 8 the purpose of conducting pari-mutuel wagering are subject 9 to the approval of the commission, and the commission shall 10 select the races to be televised. The races selected by the 11 commission shall be the same for all licensees approved by the 12 commission to televise races for the purpose of conducting 13 pari-mutuel wagering. The commission shall not authorize the 14 simultaneous telecast or televising of and a licensee shall 15 not simultaneously telecast or televise any horse or dog race 16 for the purpose of conducting pari-mutuel wagering unless the 17 simultaneous telecast or televising is done at the racetrack 18 of a licensee that schedules no less than sixty performances 19 of nine live races each day of the season or that is exempt 20 from scheduling performances of live races pursuant to section 21 99D.9A . 22 (3) For purposes of the taxes imposed under this chapter, 23 races televised by a licensee for purposes of pari-mutuel 24 wagering shall be treated as if the races were held at the 25 racetrack of the licensee. Notwithstanding any contrary 26 provision in this chapter, the commission may allow a licensee 27 to adopt the same deductions as those of the pari-mutuel 28 racetrack from which the races are being simultaneously 29 telecast. 30 Sec. 3. Section 99F.6, subsection 4, paragraph b, Code 2009, 31 is amended to read as follows: 32 b. The commission shall authorize the licensees of 33 pari-mutuel dog racetracks located in Dubuque county and Black 34 Hawk county to conduct gambling games as provided in section 35 -2- LSB 5786YC (4) 83 ec/rj 2/ 4

H.F. _____ 99F.4A if the licensees schedule at least one hundred thirty 1 performances of twelve live races each day during a season of 2 twenty-five weeks. For the pari-mutuel dog racetrack located 3 in Pottawattamie county, the commission shall authorize the 4 licensee to conduct gambling games as provided in section 5 99F.4A if the licensee schedules at least two hundred ninety 6 performances of twelve live races each day during a season of 7 fifty weeks. The commission shall approve an annual contract 8 to be negotiated between the annual recipient of the dog racing 9 promotion fund and each dog racetrack licensee to specify the 10 percentage or amount of gambling game proceeds which shall be 11 dedicated to supplement the purses of live dog races. The 12 parties shall agree to a negotiation timetable to insure no 13 interruption of business activity. If the parties fail to 14 agree, the commission shall impose a timetable. If the two 15 parties cannot reach agreement, each party shall select a 16 representative and the two representatives shall select a 17 third person to assist in negotiating an agreement. The two 18 representatives may select the commission or one of its members 19 to serve as the third party. Alternately, each party shall 20 submit the name of the proposed third person to the commission 21 who shall then select one of the two persons to serve as 22 the third party. All parties to the negotiations, including 23 the commission, shall consider that the dog racetracks were 24 built to facilitate the development and promotion of Iowa 25 greyhound racing dogs in this state and shall negotiate and 26 decide accordingly. However, the requirement to conduct 27 performances of live races for purposes of conducting gambling 28 games under this chapter shall not apply to a licensee exempt 29 from scheduling performances of live races pursuant to section 30 99D.9A. 31 Sec. 4. EFFECTIVE UPON ENACTMENT. This Act, being deemed of 32 immediate importance, takes effect upon enactment. 33 EXPLANATION 34 This bill concerns the conduct of live dog racing at 35 -3- LSB 5786YC (4) 83 ec/rj 3/ 4

H.F. _____ pari-mutuel dog racetracks authorized to conduct gambling 1 games. 2 New Code section 99D.9A allows a licensee authorized to 3 operate a pari-mutuel dog racetrack and to conduct gambling 4 games as of January 1, 2010, to pay a racing exemption fee, 5 to discontinue scheduling performances of live dog races, and 6 to maintain a license under Code chapter 99D for purposes of 7 permitting pari-mutuel wagering on simultaneously telecast dog 8 races. The new Code section sets the exemption fee for the 9 pari-mutuel dog racetrack located in Dubuque county at either 10 $10 million, payable in two equal installments in December 11 and June of the fiscal year beginning July 1, 2010, or at 12 $3 million, payable each January in the seven consecutive 13 calendar years commencing January 2011. For the pari-mutuel 14 dog racetrack located in Pottawattamie county, the fee is set 15 at either $25 million, payable in two equal installments in 16 December and June of the fiscal year beginning July 1, 2010, or 17 at $7 million, payable each January in the seven consecutive 18 calendar years commencing January 2011. 19 Code section 99D.11(6)(b), concerning pari-mutuel wagering 20 on simultaneous telecasts of horse or dog races, is amended 21 to allow a simultaneous telecast of dog races at a licensee 22 in this state that is exempt from scheduling live dog races 23 pursuant to new Code section 99D.9A. Under current law, 24 simulcast telecasting of races can only be allowed at a 25 racetrack of a licensee that schedules no less than 60 26 performances of nine live races each day of the season. 27 Code section 99F.6(4)(b) is amended to allow the conduct of 28 gambling games at a pari-mutuel dog racetrack that is exempt 29 from scheduling performances of live races pursuant to new Code 30 section 99D.9A. 31 This bill takes effect upon enactment. 32 -4- LSB 5786YC (4) 83 ec/rj 4/ 4