H.F. 2406 Section 1. NEW SECTION . 99D.9A Dog racetrack licensure —— 1 fees. 2 1. Upon at least fourteen days’ written notification to the 3 commission, a licensee authorized to operate a pari-mutuel dog 4 racetrack and to conduct gambling games pursuant to section 5 99F.6 as of January 1, 2014, may, upon agreement to comply with 6 the requirements of this section, discontinue performances of 7 live dog races at the racetrack and maintain a license under 8 this chapter for purposes of permitting pari-mutuel wagering 9 on simultaneously telecast horse races and for purposes of 10 conducting gambling games. 11 2. Upon written notification and discontinuance of live dog 12 racing by a licensee, all of the following shall occur: 13 a. The commission shall determine what portion of the 14 unexpended moneys in the dog racing promotion fund created 15 in section 99D.12 is attributable to the licensee that has 16 discontinued live racing and shall transfer those moneys to the 17 Iowa greyhound pari-mutuel racing retirement fund created in 18 section 99D.9B. 19 b. Any agreement approved by the commission for dog purse 20 supplement payments for live racing that was discontinued by 21 the licensee shall be terminated. 22 c. The commission, the licensee of the pari-mutuel dog 23 racetrack located in Pottawattamie county, and the Iowa 24 greyhound association shall take all action necessary to 25 facilitate the transfer of unexpended funds in an escrow fund 26 created pursuant to a decision in December 1995 regarding 27 dog purse supplements at the racetrack to the commission for 28 deposit in the Iowa greyhound pari-mutuel racing retirement 29 fund created in section 99D.9B. 30 d. The licensee shall pay the live racing cessation fee as 31 provided by this section and shall continue to pay the annual 32 license fee and regulatory fee as a pari-mutuel dog racetrack 33 licensed to operate gambling games pursuant to the requirements 34 of section 99F.4A. 35 -1- LSB 5742HV (2) 85 ec/sc 1/ 8

H.F. 2406 3. For purposes of this section, the live racing cessation 1 fee shall be paid to the commission for deposit in the Iowa 2 greyhound pari-mutuel racing retirement fund created in section 3 99D.9B, which fee shall be determined as follows: 4 a. For the pari-mutuel dog racetrack located in Dubuque 5 county, the payment of two million one hundred forty-two 6 thousand dollars within two weeks of the discontinuance of live 7 racing at the licensee, and two million one hundred forty-three 8 thousand dollars each July 1 for six consecutive calendar years 9 thereafter, commencing on July 1 of the calendar year following 10 the calendar year in which live racing was discontinued. 11 b. For the pari-mutuel dog racetrack located in 12 Pottawattamie county, the payment of seven million eight 13 hundred fifty-two thousand dollars within two weeks of the 14 discontinuance of live racing at the licensee, and seven 15 million eight hundred fifty-eight thousand dollars each July 16 1 for six consecutive calendar years thereafter, commencing 17 on July 1 of the calendar year following the calendar year in 18 which live racing was discontinued. 19 4. A licensee who discontinues live racing pursuant to 20 the requirements of this section shall remain licensed as a 21 pari-mutuel dog racetrack licensed to operate gambling games, 22 shall comply with the requirements of this chapter applicable 23 to a dog racetrack licensee except for those requirements 24 applicable to live racing, and shall be permitted, but not 25 required, to conduct pari-mutuel wagering on simultaneously 26 telecast horse races. 27 Sec. 2. NEW SECTION . 99D.9B Iowa greyhound pari-mutuel 28 racing retirement fund. 29 1. An Iowa greyhound pari-mutuel racing retirement fund is 30 created in the state treasury under the control of the racing 31 and gaming commission. 32 2. The fund shall consist of all of the following: 33 a. Moneys in the dog racing promotion fund created in 34 section 99D.12 that were deposited in those funds from a dog 35 -2- LSB 5742HV (2) 85 ec/sc 2/ 8

H.F. 2406 racetrack licensee that discontinues scheduling performances of 1 live dog races pursuant to section 99D.9A. 2 b. Moneys representing greyhound racing escrow funds that 3 are transferred to the fund pursuant to the requirements of 4 section 99D.9A. 5 c. Moneys deposited in the fund from the live racing 6 cessation fee established in section 99D.9A. 7 3. Moneys in the fund shall be distributed by the 8 commission, in the sole discretion of the commission, to 9 eligible recipients in an expeditious manner pursuant to rules 10 adopted by the commission. The rules shall provide for the 11 determination of eligible recipients by the commission and may 12 require such documentation from eligible recipients as the 13 commission deems appropriate for the commission to determine 14 eligibility and the distribution of moneys in the fund to 15 eligible recipients. The commission may use moneys in the 16 fund to retain a consultant to assist the commission in the 17 development of a distribution plan to eligible recipients. 18 In determining the distribution of moneys in the fund to 19 eligible recipients, the commission may consider how long an 20 eligible recipient was involved in greyhound racing, whether 21 the eligible recipient is still involved in greyhound racing or 22 how recently the eligible recipient was involved in greyhound 23 racing, the eligible recipient’s record concerning animal 24 welfare, the extent of the eligible recipient’s involvement in 25 greyhound racing and whether the services provided were unique 26 to the greyhound industry or are services which are generally 27 provided regardless of the nature of the business, whether 28 the eligible recipient is located in the state, and any other 29 factors the commission deems appropriate.For purposes of this 30 section, “eligible recipients” means greyhound owners, greyhound 31 breeders, kennel operators, any persons involved in greyhound 32 racing in Iowa, and no-kill animal adoption agencies. 33 4. Section 8.33 does not apply to moneys in the fund. 34 Notwithstanding section 12C.7, subsection 2, interest or 35 -3- LSB 5742HV (2) 85 ec/sc 3/ 8

H.F. 2406 earnings on moneys deposited in the fund shall be credited to 1 the fund. 2 5. The commission shall adopt rules to administer this 3 section. The commission may adopt rules on an emergency basis 4 as provided in sections 17A.4 and 17A.5 to administer this 5 section. Any emergency rules adopted in accordance with this 6 section shall also be published as a notice of intended action 7 as provided in section 17A.4. 8 Sec. 3. Section 99D.11, subsection 6, paragraph b, Code 9 2014, is amended to read as follows: 10 b. (1) The commission may authorize the licensee to 11 simultaneously telecast within the racetrack enclosure or 12 licensed premises , for the purpose of pari-mutuel wagering, a 13 horse or dog race licensed by the racing authority of another 14 state. It is the responsibility of each licensee to obtain 15 the consent of appropriate racing officials in other states as 16 required by the federal Interstate Horseracing Act of 1978, 17 15 U.S.C. § 3001 – 3007, to televise races for the purpose of 18 conducting pari-mutuel wagering. 19 (2) A licensee may also obtain the permission of a person 20 licensed by the commission to conduct horse or dog races in 21 this state to televise races conducted by that person for the 22 purpose of conducting pari-mutuel racing wagering . However, 23 arrangements made by a licensee to televise any race for 24 the purpose of conducting pari-mutuel wagering are subject 25 to the approval of the commission, and the commission shall 26 select the races to be televised. The races selected by the 27 commission shall be the same for all licensees approved by the 28 commission to televise races for the purpose of conducting 29 pari-mutuel wagering. The commission shall not authorize the 30 simultaneous telecast or televising of and a licensee shall 31 not simultaneously telecast or televise any horse or dog race 32 for the purpose of conducting pari-mutuel wagering unless the 33 simultaneous telecast or televising is done at the racetrack 34 of a licensee that schedules no less than sixty performances 35 -4- LSB 5742HV (2) 85 ec/sc 4/ 8

H.F. 2406 of nine live races each day of the season or at the licensed 1 premises of a licensee that is not obligated to schedule 2 performances of live races pursuant to section 99D.9A . 3 (3) For purposes of the taxes imposed under this 4 chapter , races televised by a licensee for purposes of 5 pari-mutuel wagering shall be treated as if the races were 6 held at the racetrack or licensed premises of the licensee. 7 Notwithstanding any contrary provision in this chapter , the 8 commission may allow a licensee to adopt the same deductions 9 as those of the pari-mutuel racetrack from which the races are 10 being simultaneously telecast. 11 Sec. 4. Section 99D.15, subsection 4, Code 2014, is amended 12 to read as follows: 13 4. A tax of two percent is imposed on the gross sum 14 wagered by the pari-mutuel method on horse races and dog 15 races which are simultaneously telecast. The tax imposed by 16 this subsection is in lieu of the taxes imposed pursuant to 17 subsection 1 or 3 , but the tax revenue from simulcast horse 18 races shall be distributed as provided in subsection 1 and the 19 tax revenue from simulcast dog races shall be distributed as 20 provided in subsection 3 . 21 Sec. 5. Section 99F.6, subsection 4, paragraph b, Code 2014, 22 is amended to read as follows: 23 b. (1) The commission shall authorize the licensees of 24 pari-mutuel dog racetracks located in Dubuque county and Black 25 Hawk county to conduct gambling games as provided in section 26 99F.4A if the licensees schedule at least one hundred thirty 27 performances of twelve live races each day during a season of 28 twenty-five weeks. For the pari-mutuel dog racetrack located 29 in Pottawattamie county, the commission shall authorize the 30 licensee to conduct gambling games as provided in section 31 99F.4A if the licensee schedules at least two hundred ninety 32 performances of twelve live races each day during a season 33 of fifty weeks. The However, the requirement to schedule 34 performances of live races for purposes of conducting gambling 35 -5- LSB 5742HV (2) 85 ec/sc 5/ 8

H.F. 2406 games under this chapter shall not apply to a licensee who is 1 not obligated to schedule performances of live races pursuant 2 to section 99D.9A. 3 (2) If a pari-mutuel dog racetrack is required to schedule 4 performances of live races for purposes of conducting gambling 5 games under this chapter, the commission shall approve an 6 annual contract to be negotiated between the annual recipient 7 of the dog racing promotion fund and each dog racetrack 8 licensee to specify the percentage or amount of gambling 9 game proceeds which shall be dedicated to supplement the 10 purses of live dog races. The parties shall agree to a 11 negotiation timetable to insure no interruption of business 12 activity. If the parties fail to agree, the commission 13 shall impose a timetable. If the two parties cannot reach 14 agreement, each party shall select a representative and the 15 two representatives shall select a third person to assist in 16 negotiating an agreement. The two representatives may select 17 the commission or one of its members to serve as the third 18 party. Alternately, each party shall submit the name of the 19 proposed third person to the commission who shall then select 20 one of the two persons to serve as the third party. All 21 parties to the negotiations, including the commission, shall 22 consider that the dog racetracks were built to facilitate the 23 development and promotion of Iowa greyhound racing dogs in this 24 state and shall negotiate and decide accordingly. 25 Sec. 6. EFFECTIVE UPON ENACTMENT. This Act, being deemed of 26 immediate importance, takes effect upon enactment. 27 EXPLANATION 28 The inclusion of this explanation does not constitute agreement with 29 the explanation’s substance by the members of the general assembly. 30 This bill concerns the conduct of live dog racing at 31 pari-mutuel dog racetracks authorized to conduct gambling 32 games. 33 New Code section 99D.9A allows a licensee authorized to 34 operate a pari-mutuel dog racetrack and to conduct gambling 35 -6- LSB 5742HV (2) 85 ec/sc 6/ 8

H.F. 2406 games as of January 1, 2014, to, upon at least 14 days’ written 1 notice to the racing and gaming commission, discontinue 2 performances of live dog races, and to maintain a license under 3 Code chapter 99D for purposes of permitting, but not requiring, 4 pari-mutuel wagering on simultaneously telecast horse races and 5 continuing to allow the licensee to conduct gambling games. 6 The bill provides that upon discontinuing live racing, the 7 racing and gaming commission shall transfer any unexpended 8 moneys in the dog racing promotion fund attributable to the 9 licensee discontinuing live dog racing to an Iowa greyhound 10 pari-mutuel racing retirement fund created in the bill. In 11 addition, upon discontinuing live racing, moneys from an 12 escrow fund for greyhound racing shall be transferred to the 13 new racing retirement fund and any agreement for dog purse 14 supplement payments for live racing shall be terminated. The 15 licensee, upon discontinuing live dog racing, shall commence 16 paying a new live racing cessation fee. The new Code section 17 sets the live racing cessation fee for the pari-mutuel dog 18 racetrack located in Dubuque county at $2.142 million, payable 19 upon discontinuing live racing, and at $2.143 million, payable 20 each July 1 for six calendar years thereafter. For the 21 pari-mutuel dog racetrack located in Pottawattamie county, the 22 annual dog racetrack licensure fee is set at $7.852 million, 23 payable upon discontinuing live racing, and at $7.858 million, 24 payable each July 1 for six calendar years thereafter. The 25 bill provides that a licensee discontinuing live racing shall 26 continue to pay the annual license fee and regulatory fee as a 27 pari-mutuel dog racetrack licensed to conduct gambling games 28 pursuant to the requirements of Code section 99F.4A. 29 New Code section 99D.9B establishes an Iowa greyhound 30 pari-mutuel racing retirement fund under the control of the 31 racing and gaming commission. The fund shall consist of moneys 32 transferred from the dog racing promotion fund, moneys credited 33 to the fund from a dog racetrack licensee that discontinues 34 live dog racing in an amount representing the remaining balance 35 -7- LSB 5742HV (2) 85 ec/sc 7/ 8

H.F. 2406 of all dog purse supplement payments, moneys in greyhound 1 racing escrow funds, and moneys from the live racing cessation 2 fee established in new Code section 99D.9A. The bill provides 3 that moneys in the fund shall be distributed in a manner 4 determined by the racing and gaming commission to greyhound 5 owners, greyhound breeders, kennel operators, any persons 6 involved in greyhound racing in Iowa, and no-kill animal 7 adoption agencies. 8 Code section 99D.11(6)(b), concerning pari-mutuel wagering 9 on simultaneous telecasts of horse or dog races, is amended 10 to eliminate simultaneous telecast wagering on dog races and 11 to allow a simultaneous telecast of horse races at a licensee 12 in this state that is not obligated to schedule live dog 13 races pursuant to new Code section 99D.9A. Under current 14 law, simulcast telecasting of races can only be allowed at 15 a racetrack of a licensee that schedules no less than 60 16 performances of nine live races each day of the season. 17 Code section 99D.15 is amended to conform to the provisions 18 in the bill discontinuing simultaneous telecast wagering on dog 19 races. 20 Code section 99F.6(4)(b) is amended to allow the conduct 21 of gambling games at a pari-mutuel dog racetrack that is not 22 obligated to schedule performances of live races pursuant to 23 new Code section 99D.9A. In addition, if a pari-mutuel dog 24 racetrack conducts live dog races, the bill eliminates the 25 requirement that the determination of supplemental dog purses 26 shall consider that the dog racetracks were built to facilitate 27 greyhound racing. 28 The bill takes effect upon enactment. 29 -8- LSB 5742HV (2) 85 ec/sc 8/ 8