HF 2406 (LSB 5742HV (2) 85)

HOUSE FILE 2406

BY  COMMITTEE ON STATE GOVERNMENT

(SUCCESSOR TO HSB 621)

A BILL FOR

An Act concerning live dog racing at pari-mutuel dog racetracks, simultaneously telecast wagering, establishing fees, and including effective date provisions.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  NEW SECTION.  99D.9A  Dog racetrack licensure —— fees.
   1.  Upon at least fourteen days’ written notification to the commission, a licensee authorized to operate a pari-mutuel dog racetrack and to conduct gambling games pursuant to section 99F.6 as of January 1, 2014, may, upon agreement to comply with the requirements of this section, discontinue performances of live dog races at the racetrack and maintain a license under this chapter for purposes of permitting pari-mutuel wagering on simultaneously telecast horse races and for purposes of conducting gambling games.
   2.  Upon written notification and discontinuance of live dog racing by a licensee, all of the following shall occur:
   a.  The commission shall determine what portion of the unexpended moneys in the dog racing promotion fund created in section 99D.12 is attributable to the licensee that has discontinued live racing and shall transfer those moneys to the Iowa greyhound pari-mutuel racing retirement fund created in section 99D.9B.
   b.  Any agreement approved by the commission for dog purse supplement payments for live racing that was discontinued by the licensee shall be terminated.
   c.  The commission, the licensee of the pari-mutuel dog racetrack located in Pottawattamie county, and the Iowa greyhound association shall take all action necessary to facilitate the transfer of unexpended funds in an escrow fund created pursuant to a decision in December 1995 regarding dog purse supplements at the racetrack to the commission for deposit in the Iowa greyhound pari-mutuel racing retirement fund created in section 99D.9B.
   d.  The licensee shall pay the live racing cessation fee as provided by this section and shall continue to pay the annual license fee and regulatory fee as a pari-mutuel dog racetrack licensed to operate gambling games pursuant to the requirements of section 99F.4A.
   3.  For purposes of this section, the live racing cessation fee shall be paid to the commission for deposit in the Iowa greyhound pari-mutuel racing retirement fund created in section 99D.9B, which fee shall be determined as follows:
   a.  For the pari-mutuel dog racetrack located in Dubuque county, the payment of two million one hundred forty-two thousand dollars within two weeks of the discontinuance of live racing at the licensee, and two million one hundred forty-three thousand dollars each July 1 for six consecutive calendar years thereafter, commencing on July 1 of the calendar year following the calendar year in which live racing was discontinued.
   b.  For the pari-mutuel dog racetrack located in Pottawattamie county, the payment of seven million eight hundred fifty-two thousand dollars within two weeks of the discontinuance of live racing at the licensee, and seven million eight hundred fifty-eight thousand dollars each July 1 for six consecutive calendar years thereafter, commencing on July 1 of the calendar year following the calendar year in which live racing was discontinued.
   4.  A licensee who discontinues live racing pursuant to the requirements of this section shall remain licensed as a pari-mutuel dog racetrack licensed to operate gambling games, shall comply with the requirements of this chapter applicable to a dog racetrack licensee except for those requirements applicable to live racing, and shall be permitted, but not required, to conduct pari-mutuel wagering on simultaneously telecast horse races.
    Sec. 2.  NEW SECTION.  99D.9B  Iowa greyhound pari-mutuel racing retirement fund.
   1.  An Iowa greyhound pari-mutuel racing retirement fund is created in the state treasury under the control of the racing and gaming commission.
   2.  The fund shall consist of all of the following:
   a.  Moneys in the dog racing promotion fund created in section 99D.12 that were deposited in those funds from a dog racetrack licensee that discontinues scheduling performances of live dog races pursuant to section 99D.9A.
   b.  Moneys representing greyhound racing escrow funds that are transferred to the fund pursuant to the requirements of section 99D.9A.
   c.  Moneys deposited in the fund from the live racing cessation fee established in section 99D.9A.
   3.  Moneys in the fund shall be distributed by the commission, in the sole discretion of the commission, to eligible recipients in an expeditious manner pursuant to rules adopted by the commission. The rules shall provide for the determination of eligible recipients by the commission and may require such documentation from eligible recipients as the commission deems appropriate for the commission to determine eligibility and the distribution of moneys in the fund to eligible recipients. The commission may use moneys in the fund to retain a consultant to assist the commission in the development of a distribution plan to eligible recipients. In determining the distribution of moneys in the fund to eligible recipients, the commission may consider how long an eligible recipient was involved in greyhound racing, whether the eligible recipient is still involved in greyhound racing or how recently the eligible recipient was involved in greyhound racing, the eligible recipient’s record concerning animal welfare, the extent of the eligible recipient’s involvement in greyhound racing and whether the services provided were unique to the greyhound industry or are services which are generally provided regardless of the nature of the business, whether the eligible recipient is located in the state, and any other factors the commission deems appropriate.For purposes of this section, “eligible recipients” means greyhound owners, greyhound breeders, kennel operators, any persons involved in greyhound racing in Iowa, and no-kill animal adoption agencies.
   4.  Section 8.33 does not apply to moneys in the fund. Notwithstanding section 12C.7, subsection 2, interest or earnings on moneys deposited in the fund shall be credited to the fund.
   5.  The commission shall adopt rules to administer this section. The commission may adopt rules on an emergency basis as provided in sections 17A.4 and 17A.5 to administer this section. Any emergency rules adopted in accordance with this section shall also be published as a notice of intended action as provided in section 17A.4.
    Sec. 3.  Section 99D.11, subsection 6, paragraph b, Code 2014, is amended to read as follows:
   b.  (1)  The commission may authorize the licensee to simultaneously telecast within the racetrack enclosure or licensed premises, for the purpose of pari-mutuel wagering, a horse or dog race licensed by the racing authority of another state. It is the responsibility of each licensee to obtain the consent of appropriate racing officials in other states as required by the federal Interstate Horseracing Act of 1978, 15 U.S.C. § 3001 – 3007, to televise races for the purpose of conducting pari-mutuel wagering.
   (2)  A licensee may also obtain the permission of a person licensed by the commission to conduct horse or dog races in this state to televise races conducted by that person for the purpose of conducting pari-mutuel racing wagering. However, arrangements made by a licensee to televise any race for the purpose of conducting pari-mutuel wagering are subject to the approval of the commission, and the commission shall select the races to be televised. The races selected by the commission shall be the same for all licensees approved by the commission to televise races for the purpose of conducting pari-mutuel wagering. The commission shall not authorize the simultaneous telecast or televising of and a licensee shall not simultaneously telecast or televise any horse or dog race for the purpose of conducting pari-mutuel wagering unless the simultaneous telecast or televising is done at the racetrack of a licensee that schedules no less than sixty performances of nine live races each day of the season or at the licensed premises of a licensee that is not obligated to schedule performances of live races pursuant to section 99D.9A.
   (3)  For purposes of the taxes imposed under this chapter, races televised by a licensee for purposes of pari-mutuel wagering shall be treated as if the races were held at the racetrack or licensed premises of the licensee. Notwithstanding any contrary provision in this chapter, the commission may allow a licensee to adopt the same deductions as those of the pari-mutuel racetrack from which the races are being simultaneously telecast.
    Sec. 4.  Section 99D.15, subsection 4, Code 2014, is amended to read as follows:
   4.  A tax of two percent is imposed on the gross sum wagered by the pari-mutuel method on horse races and dog races which are simultaneously telecast. The tax imposed by this subsection is in lieu of the taxes imposed pursuant to subsection 1 or 3, but the tax revenue from simulcast horse races shall be distributed as provided in subsection 1 and the tax revenue from simulcast dog races shall be distributed as provided in subsection 3.
    Sec. 5.  Section 99F.6, subsection 4, paragraph b, Code 2014, is amended to read as follows:
   b.  (1)  The commission shall authorize the licensees of pari-mutuel dog racetracks located in Dubuque county and Black Hawk county to conduct gambling games as provided in section 99F.4A if the licensees schedule at least one hundred thirty performances of twelve live races each day during a season of twenty-five weeks. For the pari-mutuel dog racetrack located in Pottawattamie county, the commission shall authorize the licensee to conduct gambling games as provided in section 99F.4A if the licensee schedules at least two hundred ninety performances of twelve live races each day during a season of fifty weeks. The However, the requirement to schedule performances of live races for purposes of conducting gambling games under this chapter shall not apply to a licensee who is not obligated to schedule performances of live races pursuant to section 99D.9A.
   (2)  If a pari-mutuel dog racetrack is required to schedule performances of live races for purposes of conducting gambling games under this chapter, the commission shall approve an annual contract to be negotiated between the annual recipient of the dog racing promotion fund and each dog racetrack licensee to specify the percentage or amount of gambling game proceeds which shall be dedicated to supplement the purses of live dog races. The parties shall agree to a negotiation timetable to insure no interruption of business activity. If the parties fail to agree, the commission shall impose a timetable. If the two parties cannot reach agreement, each party shall select a representative and the two representatives shall select a third person to assist in negotiating an agreement. The two representatives may select the commission or one of its members to serve as the third party. Alternately, each party shall submit the name of the proposed third person to the commission who shall then select one of the two persons to serve as the third party. All parties to the negotiations, including the commission, shall consider that the dog racetracks were built to facilitate the development and promotion of Iowa greyhound racing dogs in this state and shall negotiate and decide accordingly.
    Sec. 6.  EFFECTIVE UPON ENACTMENT.  This Act, being deemed of immediate importance, takes effect upon enactment.
EXPLANATION
The inclusion of this explanation does not constitute agreement with

the explanation’s substance by the members of the general assembly.
   This bill concerns the conduct of live dog racing at pari-mutuel dog racetracks authorized to conduct gambling games.
   New Code section 99D.9A allows a licensee authorized to operate a pari-mutuel dog racetrack and to conduct gambling games as of January 1, 2014, to, upon at least 14 days’ written notice to the racing and gaming commission, discontinue performances of live dog races, and to maintain a license under Code chapter 99D for purposes of permitting, but not requiring, pari-mutuel wagering on simultaneously telecast horse races and continuing to allow the licensee to conduct gambling games. The bill provides that upon discontinuing live racing, the racing and gaming commission shall transfer any unexpended moneys in the dog racing promotion fund attributable to the licensee discontinuing live dog racing to an Iowa greyhound pari-mutuel racing retirement fund created in the bill. In addition, upon discontinuing live racing, moneys from an escrow fund for greyhound racing shall be transferred to the new racing retirement fund and any agreement for dog purse supplement payments for live racing shall be terminated. The licensee, upon discontinuing live dog racing, shall commence paying a new live racing cessation fee. The new Code section sets the live racing cessation fee for the pari-mutuel dog racetrack located in Dubuque county at $2.142 million, payable upon discontinuing live racing, and at $2.143 million, payable each July 1 for six calendar years thereafter. For the pari-mutuel dog racetrack located in Pottawattamie county, the annual dog racetrack licensure fee is set at $7.852 million, payable upon discontinuing live racing, and at $7.858 million, payable each July 1 for six calendar years thereafter. The bill provides that a licensee discontinuing live racing shall continue to pay the annual license fee and regulatory fee as a pari-mutuel dog racetrack licensed to conduct gambling games pursuant to the requirements of Code section 99F.4A.
   New Code section 99D.9B establishes an Iowa greyhound pari-mutuel racing retirement fund under the control of the racing and gaming commission. The fund shall consist of moneys transferred from the dog racing promotion fund, moneys credited to the fund from a dog racetrack licensee that discontinues live dog racing in an amount representing the remaining balance of all dog purse supplement payments, moneys in greyhound racing escrow funds, and moneys from the live racing cessation fee established in new Code section 99D.9A. The bill provides that moneys in the fund shall be distributed in a manner determined by the racing and gaming commission to greyhound owners, greyhound breeders, kennel operators, any persons involved in greyhound racing in Iowa, and no-kill animal adoption agencies.
   Code section 99D.11(6)(b), concerning pari-mutuel wagering on simultaneous telecasts of horse or dog races, is amended to eliminate simultaneous telecast wagering on dog races and to allow a simultaneous telecast of horse races at a licensee in this state that is not obligated to schedule live dog races pursuant to new Code section 99D.9A. Under current law, simulcast telecasting of races can only be allowed at a racetrack of a licensee that schedules no less than 60 performances of nine live races each day of the season.
   Code section 99D.15 is amended to conform to the provisions in the bill discontinuing simultaneous telecast wagering on dog races.
   Code section 99F.6(4)(b) is amended to allow the conduct of gambling games at a pari-mutuel dog racetrack that is not obligated to schedule performances of live races pursuant to new Code section 99D.9A. In addition, if a pari-mutuel dog racetrack conducts live dog races, the bill eliminates the requirement that the determination of supplemental dog purses shall consider that the dog racetracks were built to facilitate greyhound racing.
   The bill takes effect upon enactment.