House
File
613
-
Introduced
HOUSE
FILE
613
BY
COMMITTEE
ON
WAYS
AND
MEANS
(SUCCESSOR
TO
HSB
52)
A
BILL
FOR
An
Act
relating
to
fantasy
sports
contests,
providing
for
a
1
tax
and
a
fee,
making
penalties
applicable,
and
including
2
implementation
provisions.
3
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
4
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(5)
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H.F.
613
Section
1.
NEW
SECTION
.
99E.1
Definitions.
1
As
used
in
this
chapter,
unless
the
context
otherwise
2
requires:
3
1.
“Applicant”
means
an
internet
fantasy
sports
contest
4
service
provider
applying
for
a
license
to
conduct
internet
5
fantasy
sports
contests
under
this
chapter.
6
2.
“Commission”
means
the
state
racing
and
gaming
commission
7
created
under
section
99D.5.
8
3.
“Fantasy
sports
contest”
includes
any
fantasy
or
9
simulated
game
or
contest
in
which
the
fantasy
sports
contest
10
operator
is
not
a
participant
in
the
game
or
contest,
the
value
11
of
all
prizes
and
awards
offered
to
winning
participants
are
12
established
and
made
known
to
the
participants
in
advance
13
of
the
contest,
all
winning
outcomes
reflect
the
relative
14
knowledge
and
skill
of
the
participants
and
shall
be
determined
15
by
accumulated
statistical
results
of
the
performance
of
16
individuals,
including
athletes
in
the
case
of
sporting
events,
17
and
no
winning
outcome
is
based
on
the
score,
point
spread,
or
18
any
performance
or
performances
of
any
single
actual
team
or
19
solely
on
any
single
performance
of
an
individual
athlete
or
20
player
in
any
single
actual
event.
21
4.
“Internet
fantasy
sports
contest”
means
a
method
of
22
entering
a
fantasy
sports
contest
by
which
a
person
may
23
establish
an
account
with
an
internet
fantasy
sports
contest
24
service
provider,
deposit
money
into
the
account,
and
use
25
the
account
balance
for
entering
a
fantasy
sports
contest
by
26
utilizing
electronic
communication.
27
5.
“Internet
fantasy
sports
contest
adjusted
revenues”
means,
28
for
each
internet
fantasy
sports
contest,
the
amount
equal
to
29
the
total
charges
and
fees
collected
from
all
participants
30
entering
the
internet
fantasy
sports
contest
less
winnings
paid
31
to
participants
in
the
contest,
multiplied
by
the
location
32
percentage.
33
6.
“Internet
fantasy
sports
contest
player”
means
a
person
34
who
is
at
least
twenty-one
years
of
age
and
participates
in
an
35
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internet
fantasy
sports
contest
operated
by
an
internet
fantasy
1
sports
contest
service
provider.
2
7.
“Internet
fantasy
sports
contest
service
provider”
means
3
a
person,
including
a
licensee
under
chapter
99D
or
99F,
who
4
conducts
an
internet
fantasy
sports
contest
as
authorized
by
5
this
chapter.
6
8.
“Location
percentage”
means,
for
each
internet
fantasy
7
sports
contest,
the
percentage,
rounded
to
the
nearest
tenth
of
8
a
percent,
equal
to
the
total
charges
and
fees
collected
from
9
all
internet
fantasy
sports
contest
players
located
in
this
10
state
divided
by
the
total
charges
and
fees
collected
from
all
11
participants
in
the
internet
fantasy
sports
contest.
12
Sec.
2.
NEW
SECTION
.
99E.2
Internet
fantasy
sports
contests
13
authorized.
14
The
system
of
entering
an
internet
fantasy
sports
contest
as
15
provided
by
this
chapter
is
legal
when
conducted
by
a
licensed
16
internet
fantasy
sports
contest
service
provider
as
provided
in
17
this
chapter.
18
Sec.
3.
NEW
SECTION
.
99E.3
Commission
——
powers.
19
1.
The
commission
shall
have
full
jurisdiction
over
and
20
shall
supervise
internet
fantasy
sports
contests
and
internet
21
fantasy
sports
contest
service
providers
as
governed
by
this
22
chapter.
23
2.
The
commission
shall
have
the
following
powers
and
shall
24
adopt
rules
pursuant
to
chapter
17A
to
administer
and
implement
25
this
chapter:
26
a.
To
review
and
investigate
applicants
and
determine
the
27
eligibility
of
applicants
for
a
license
to
conduct
internet
28
fantasy
sports
contests,
pursuant
to
rules
adopted
by
the
29
commission.
30
b.
To
license
and
regulate
internet
fantasy
sports
contest
31
service
providers
subject
to
the
requirements
of
this
chapter.
32
c.
To
provide
for
the
prevention
of
practices
detrimental
to
33
the
public
and
to
provide
for
the
best
interests
of
internet
34
fantasy
sports
contests.
35
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613
d.
To
investigate
alleged
violations
of
this
chapter
1
or
the
commission
rules,
orders,
or
final
decisions
and
to
2
take
appropriate
disciplinary
action
against
a
licensee,
or
3
institute
appropriate
legal
action
for
enforcement,
or
both.
4
Information
gathered
during
an
investigation
is
confidential
5
during
the
pendency
of
the
investigation.
6
e.
To
assess
fines
and
revoke
or
suspend
licenses
and
to
7
impose
penalties
for
violations
of
this
chapter.
8
f.
To
require,
beginning
July
1,
2019,
licensees
to
9
establish
a
process
with
the
state
for
licensees
to
have
10
electronic
access
to
names
and
social
security
numbers
of
11
debtors
of
claimant
agencies
through
a
secured
interactive
12
internet
site
maintained
by
the
state.
13
g.
To
take
any
other
action
as
may
be
reasonable
or
14
appropriate
to
enforce
this
chapter
and
the
commission
rules.
15
Sec.
4.
NEW
SECTION
.
99E.4
Requirements
of
applicant
——
fee
16
——
penalty.
17
1.
An
applicant
for
a
license
to
conduct
internet
fantasy
18
sports
contests
shall
complete
and
sign
an
application
on
19
the
form
prescribed
and
published
by
the
commission.
The
20
application
shall
include
such
information
of
the
applicant
21
that
the
commission
deems
necessary
for
purposes
of
issuing
a
22
license
pursuant
to
this
chapter.
23
2.
An
applicant
shall
submit
fingerprints
and
information
24
that
the
commission
deems
necessary
to
the
commission
in
the
25
manner
prescribed
on
the
application
forms.
The
fingerprints
26
may
be
submitted
to
the
federal
bureau
of
investigation
by
the
27
department
of
public
safety
through
the
state
criminal
history
28
repository
for
the
purpose
of
a
national
criminal
history
29
check.
30
3.
The
commission
shall
charge
the
applicant
a
fee
set
31
by
the
department
of
public
safety,
division
of
criminal
32
investigation,
to
defray
the
costs
associated
with
any
33
investigations
conducted
pursuant
to
the
requirements
of
this
34
section
concerning
the
applicant.
This
fee
is
in
addition
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613
to
any
other
license
fee
charged
by
the
commission.
The
fee
1
may
be
retained
by
the
department
of
public
safety,
division
2
of
criminal
investigation,
and
shall
be
considered
repayment
3
receipts
as
defined
in
section
8.2.
4
4.
A
license
shall
not
be
granted
to
an
applicant
if
there
5
is
substantial
evidence
that
any
of
the
following
apply:
6
a.
A
license
issued
to
the
applicant
to
conduct
internet
7
fantasy
sports
contests
in
another
jurisdiction
has
been
8
revoked
by
an
entity
licensing
persons
to
conduct
such
contests
9
in
that
jurisdiction.
10
b.
The
applicant
has
not
demonstrated
financial
11
responsibility
sufficient
to
adequately
meet
the
requirements
12
of
the
enterprise
proposed.
13
c.
The
applicant
does
not
adequately
disclose
the
true
14
owners
of
the
enterprise
proposed.
15
d.
The
applicant
has
knowingly
made
a
false
statement
of
a
16
material
fact
to
the
commission.
17
e.
The
applicant
has
failed
to
meet
a
monetary
obligation
in
18
connection
with
conducting
an
internet
fantasy
sports
contest.
19
f.
The
applicant
is
not
of
good
repute
and
moral
character
20
or
the
applicant
has
pled
guilty
to,
or
has
been
convicted
of,
21
a
felony.
22
g.
Any
member
of
the
board
of
directors
of
the
applicant
is
23
not
twenty-one
years
of
age
or
older.
24
5.
A
person
who
knowingly
makes
a
false
statement
on
the
25
application
is
guilty
of
an
aggravated
misdemeanor.
26
6.
For
the
purposes
of
this
section,
“applicant”
includes
27
each
member
of
the
board
of
directors
of
an
internet
fantasy
28
sports
contest
service
provider.
29
Sec.
5.
NEW
SECTION
.
99E.5
Licenses
——
fees
——
terms
and
30
conditions
——
revocation.
31
1.
If
the
commission
is
satisfied
that
the
requirements
32
of
this
chapter
and
its
rules
adopted
under
this
chapter
33
applicable
to
licensees
have
been
or
will
be
complied
with,
the
34
commission
shall
issue
a
license
for
a
period
of
not
more
than
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three
years
to
an
applicant
to
conduct
internet
fantasy
sports
1
contests
in
this
state.
2
2.
A
licensed
internet
fantasy
sports
contest
service
3
provider
shall
comply
with
all
of
the
following
requirements:
4
a.
Prevent
employees
of
the
internet
fantasy
sports
contest
5
service
provider
and
relatives
living
in
the
same
household
of
6
such
employees
from
competing
in
any
internet
fantasy
sports
7
contest
on
the
service
provider’s
digital
platform
in
which
the
8
service
provider
offers
a
cash
prize
to
the
public.
9
b.
Verify
that
an
internet
fantasy
sports
contest
player
10
located
in
this
state
is
twenty-one
years
of
age
or
older.
11
c.
Ensure
that
coaches,
officials,
players,
contestants,
12
or
other
individuals
who
participate
in
a
game
or
contest
13
that
is
the
subject
of
an
internet
fantasy
sports
contest
are
14
restricted
from
entering
an
internet
fantasy
sports
contest
in
15
which
the
outcome
is
determined,
in
whole
or
in
part,
by
the
16
accumulated
statistical
results
of
a
team
of
individuals
in
the
17
game
or
contest
in
which
they
participate.
18
d.
Prohibit
internet
fantasy
sports
contests
based
upon
any
19
extracurricular
interscholastic
athletic
contest
or
competition
20
which
is
sponsored
or
administered
by
an
organization
as
21
defined
in
section
280.13,
any
amateur
athletic
contest
or
22
competition
in
which
all
participants
are
under
the
age
of
23
twenty-one,
or
any
intercollegiate
sport
as
defined
in
section
24
9A.102.
25
e.
Allow
individuals
to
restrict
themselves
from
entering
26
an
internet
fantasy
sports
contest
conducted
by
the
internet
27
fantasy
sports
contest
service
provider
upon
request
and
take
28
reasonable
steps
to
prevent
those
individuals
from
entering
29
any
internet
fantasy
sports
contests
conducted
by
the
internet
30
fantasy
sports
contest
service
provider.
31
f.
Disclose
the
number
of
entries
a
single
internet
fantasy
32
sports
contest
player
may
submit
to
each
internet
fantasy
33
sports
contest
and
take
reasonable
steps
to
prevent
players
34
from
submitting
more
than
the
allowable
number
of
entries
for
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that
internet
fantasy
sports
contest.
1
g.
Segregate
internet
fantasy
sports
contest
player
funds
2
from
operational
funds
and
maintain
a
reserve
in
the
form
3
of
cash,
cash
equivalents,
an
irrevocable
letter
of
credit,
4
payment
processor
reserves
and
receivables,
a
bond,
or
a
5
combination
thereof
in
the
amount
of
the
deposits
in
internet
6
fantasy
sports
contest
player
accounts
for
the
benefit
and
7
protection
of
internet
fantasy
sports
contest
player
funds
held
8
in
internet
fantasy
sports
contest
accounts
by
the
internet
9
fantasy
sports
contest
service
provider.
10
h.
Annually
contract
with
a
third
party
to
perform
an
11
independent
audit,
consistent
with
the
standards
established
12
by
the
American
institute
of
certified
public
accountants,
13
to
ensure
compliance
with
all
of
the
requirements
in
this
14
chapter
and
submit
the
results
of
the
independent
audit
to
the
15
commission.
16
i.
Pay
the
tax
as
provided
in
section
99E.6.
17
3.
The
annual
license
fee
to
conduct
internet
fantasy
sports
18
contests
shall
be
five
hundred
dollars.
Moneys
collected
by
19
the
commission
from
the
annual
license
fee
paid
under
this
20
subsection
shall
be
considered
repayment
receipts
as
defined
21
in
section
8.2.
22
4.
a.
A
licensed
internet
fantasy
sports
contest
service
23
provider
shall
pay
a
regulatory
fee
to
the
commission.
The
24
regulatory
fee
shall
be
established
by
the
commission
based
on
25
the
costs
of
administering
and
enforcing
this
chapter.
26
b.
A
licensed
internet
fantasy
sports
contest
service
27
provider
shall
receive
a
credit
for
the
amount
of
the
28
regulatory
fee
paid
by
the
provider
against
the
taxes
to
be
29
paid
pursuant
to
section
99E.6.
30
c.
Moneys
collected
by
the
commission
from
the
regulatory
31
fees
paid
under
this
subsection
shall
be
considered
repayment
32
receipts
as
defined
in
section
8.2.
33
5.
Upon
a
violation
of
any
of
the
conditions
listed
in
34
section
99E.4
or
this
section
by
a
licensee,
the
commission
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shall
immediately
revoke
the
license.
1
Sec.
6.
NEW
SECTION
.
99E.6
Internet
fantasy
sports
contest
2
tax
——
rate
——
allocations.
3
1.
A
tax
of
seven
and
one-half
percent
is
imposed
on
4
internet
fantasy
sports
contest
adjusted
revenues.
The
tax
5
imposed
by
this
section
shall
be
paid
by
the
internet
fantasy
6
sports
contest
service
provider
to
the
commission
as
provided
7
by
the
commission.
8
2.
Of
the
revenues
collected
pursuant
to
this
section,
an
9
amount
equal
to
one-half
of
one
percent
of
internet
fantasy
10
sports
contest
adjusted
revenues
is
transferred
to
a
special
11
revenue
account
in
the
general
fund
of
the
state
to
be
used,
12
subject
to
an
appropriation
by
the
general
assembly,
by
the
13
department
of
public
health
for
purposes
of
the
gambling
14
treatment
program
established
pursuant
to
section
135.150.
The
15
remaining
amount
of
the
revenues
collected
pursuant
to
this
16
section
shall
be
deposited
in
the
rebuild
Iowa
infrastructure
17
fund
created
in
section
8.57.
18
Sec.
7.
NEW
SECTION
.
99E.7
Internet
fantasy
sports
contests
19
——
age
restrictions.
20
A
person
under
the
age
of
twenty-one
years
shall
not
enter
an
21
internet
fantasy
sports
contest.
A
person
who
violates
this
22
section
with
respect
to
entering
an
internet
fantasy
sports
23
contest
commits
a
scheduled
violation
under
section
805.8C,
24
subsection
11.
25
Sec.
8.
NEW
SECTION
.
99E.8
Division
of
criminal
26
investigation.
27
The
division
of
criminal
investigation
of
the
department
of
28
public
safety
may
investigate
to
determine
licensee
compliance
29
with
the
requirements
of
this
chapter
.
Investigations
may
be
30
conducted
either
on
the
criminal
investigation
division’s
own
31
initiative
or
at
the
request
of
the
commission.
The
criminal
32
investigation
division
and
the
commission
shall
cooperate
to
33
the
maximum
extent
possible
on
an
investigation.
34
Sec.
9.
NEW
SECTION
.
99E.9
Setoff.
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1.
A
licensee
or
a
person
acting
on
behalf
of
a
licensee
1
shall
be
provided
electronic
access
to
the
names
of
the
2
persons
indebted
to
a
claimant
agency
pursuant
to
the
process
3
established
pursuant
to
section
99E.3,
subsection
5
.
The
4
electronic
access
provided
by
the
claimant
agency
shall
5
include
access
to
the
names
of
the
debtors,
their
social
6
security
numbers,
and
any
other
information
that
assists
the
7
licensee
in
identifying
the
debtors.
If
an
internet
fantasy
8
sports
contest
player
located
in
this
state
makes
an
account
9
balance
withdrawal
equal
to
one
thousand
two
hundred
dollars
10
or
greater,
the
licensee
shall
perform
an
electronic
records
11
search
of
persons
indebted
to
a
claimant
agency.
If
the
name
12
of
the
internet
fantasy
sports
contest
player
is
retrieved
by
13
the
licensee
pursuant
to
the
records
search,
the
retrieval
of
14
such
a
name
shall
constitute
a
valid
lien
upon
and
claim
of
15
lien
against
the
account
balance
withdrawal
of
the
internet
16
fantasy
sports
contest
player
whose
name
is
electronically
17
retrieved
from
the
claimant
agency.
If
an
internet
fantasy
18
sports
contest
player’s
account
balance
withdrawal
is
equal
19
to
or
greater
than
one
thousand
two
hundred
dollars
per
20
occurrence,
the
full
amount
of
the
debt
shall
be
collectible
21
from
any
account
balance
withdrawal
due
the
internet
fantasy
22
sports
contest
player
without
regard
to
limitations
on
the
23
amounts
that
may
be
collectible
in
increments
through
setoff
or
24
other
proceedings.
25
2.
The
licensee
is
authorized
and
directed
to
withhold
26
any
account
balance
withdrawal
of
an
internet
fantasy
sports
27
contest
player
which
is
paid
out
directly
by
the
licensee
28
subject
to
the
lien
created
by
this
section
and
provide
notice
29
of
such
withholding
to
the
internet
fantasy
sports
contest
30
player
making
the
account
balance
withdrawal.
The
licensee
31
shall
pay
the
funds
over
to
the
collection
entity
which
32
administers
the
setoff
program
pursuant
to
section
8A.504
.
33
3.
Notwithstanding
any
other
provision
of
law
to
the
34
contrary,
the
licensee
may
provide
to
a
claimant
agency
all
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information
necessary
to
accomplish
and
effectuate
the
intent
1
of
this
section
,
and
likewise
the
claimant
agency
may
provide
2
all
information
necessary
to
accomplish
and
effectuate
the
3
intent
of
this
section
.
4
4.
The
information
obtained
by
a
claimant
agency
from
the
5
licensee
in
accordance
with
this
section
shall
retain
its
6
confidentiality
and
shall
only
be
used
by
a
claimant
agency
in
7
the
pursuit
of
its
debt
collection
duties
and
practices.
An
8
employee
or
prior
employee
of
a
claimant
agency
who
unlawfully
9
discloses
any
such
information
for
any
other
purpose,
except
10
as
otherwise
specifically
authorized
by
law,
shall
be
subject
11
to
the
penalties
specified
by
law
for
unauthorized
disclosure
12
of
confidential
information
by
an
agent
or
employee
of
the
13
claimant
agency.
14
5.
The
information
obtained
by
a
licensee
from
a
claimant
15
agency
in
accordance
with
this
section
shall
retain
its
16
confidentiality
and
only
be
used
by
the
licensee
in
the
17
pursuit
of
debt
collection
duties
and
practices.
An
employee
18
or
prior
employee
of
a
licensee
who
unlawfully
discloses
any
19
such
information
for
any
other
purpose,
except
as
otherwise
20
specifically
authorized
by
law,
shall
be
subject
to
the
21
same
penalties
specified
by
law
for
unauthorized
disclosure
22
of
confidential
information
by
an
agent
or
employee
of
the
23
licensee.
24
6.
Except
as
otherwise
provided
in
this
chapter
,
25
attachments,
setoffs,
or
executions
authorized
and
issued
26
pursuant
to
law
shall
be
withheld
if
timely
served
upon
the
27
licensee.
28
7.
A
claimant
agency
or
licensee,
acting
in
good
faith,
29
shall
not
be
liable
to
any
person
for
actions
taken
pursuant
to
30
this
section
.
31
Sec.
10.
NEW
SECTION
.
99E.10
Penalties.
32
In
addition
to
any
other
penalty
specified
in
this
chapter,
33
a
person
who
willfully
fails
to
comply
with
the
requirements
34
of
this
chapter
and
the
rules
adopted
pursuant
to
chapter
17A
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commits
a
class
“D”
felony
and,
in
addition,
shall
be
barred
1
for
life
from
internet
fantasy
sports
contests.
2
Sec.
11.
Section
232C.4,
subsection
3,
Code
2017,
is
amended
3
to
read
as
follows:
4
3.
An
emancipated
minor
shall
remain
subject
to
voting
5
restrictions
under
chapter
48A
,
gambling
restrictions
under
6
chapter
99B
,
99D
,
99F
,
99G
,
or
725
,
internet
fantasy
sports
7
contest
restrictions
under
chapter
99E,
alcohol
restrictions
8
under
chapter
123
,
compulsory
attendance
requirements
under
9
chapter
299
,
and
cigarette
tobacco
restrictions
under
chapter
10
453A
.
11
Sec.
12.
Section
714B.10,
subsection
1,
Code
2017,
is
12
amended
to
read
as
follows:
13
1.
Advertising
by
sponsors
registered
pursuant
to
chapter
14
557B
,
licensed
pursuant
to
chapter
99B
,
or
regulated
pursuant
15
to
chapter
99D
,
99E,
99F
,
or
99G
.
16
Sec.
13.
Section
805.8C,
Code
2017,
is
amended
by
adding
the
17
following
new
subsection:
18
NEW
SUBSECTION
.
11.
Internet
fantasy
sports
contest
19
violations.
For
violations
of
legal
age
for
entering
an
20
internet
fantasy
sports
contest
under
section
99E.7,
the
21
scheduled
fine
is
five
hundred
dollars.
Failure
to
pay
the
22
fine
by
a
person
under
the
age
of
eighteen
shall
not
result
in
23
the
person
being
detained
in
a
secure
facility.
24
Sec.
14.
TRANSITIONAL
LICENSE.
Notwithstanding
any
25
provisions
of
Code
chapter
99E
as
enacted
by
this
Act
to
the
26
contrary,
a
person
granted
a
license
or
registration
by
two
27
or
more
states
to
conduct
internet
fantasy
sports
contests
28
may
apply
for
and
shall
be
granted
a
transitional
license
by
29
the
racing
and
gaming
commission
to
conduct
internet
fantasy
30
sports
contests
in
this
state
subject
to
the
requirements
of
31
Code
chapter
99E,
as
enacted
by
this
Act.
The
transitional
32
license
shall
be
valid
until
the
earlier
of
the
date
the
33
racing
and
gaming
commission
grants
or
denies
a
license
under
34
section
99E.5
to
the
person
to
conduct
internet
fantasy
sports
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contests,
or
twelve
months
from
the
date
the
racing
and
gaming
1
commission
accepts
applications
for
issuance
of
a
license
to
2
conduct
internet
fantasy
sports
contests
under
section
99E.5.
3
Sec.
15.
IMPLEMENTATION
DATE.
The
following
provision
or
4
provisions
of
this
Act
shall
not
be
implemented
until
July
1,
5
2019:
6
1.
The
section
of
this
Act
enacting
section
99E.9.
7
EXPLANATION
8
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
9
the
explanation’s
substance
by
the
members
of
the
general
assembly.
10
This
bill
authorizes
internet
fantasy
sports
contests
11
and
provides
for
the
licensing,
regulation,
and
taxation
of
12
internet
fantasy
sports
contests.
13
New
Code
section
99E.1
provides
for
definitions.
A
“fantasy
14
sports
contest”
is
defined
as
any
fantasy
or
simulated
game
15
or
contest
in
which
all
prizes
and
awards
offered
to
winning
16
participants
are
established
and
made
known
in
advance
of
the
17
contest,
all
winning
outcomes
reflect
the
relative
knowledge
18
and
skill
of
the
participants
and
are
determined
predominantly
19
by
accumulated
statistical
results
of
the
performance
of
20
individuals,
and
no
winning
outcome
is
based
on
the
score,
or
21
performance
of
any
single
actual
team
or
combination
of
such
22
teams
or
solely
on
any
single
performance
of
an
individual
23
athlete
in
any
single
actual
sporting
or
other
event.
An
24
“internet
fantasy
sports
contest”
is
defined
as
a
method
of
25
entering
a
fantasy
sports
contest
by
establishing
an
account
26
with
an
internet
fantasy
sports
contest
service
provider.
An
27
“internet
fantasy
sports
contest
player”
is
defined
as
a
person
28
who
is
at
least
21
years
of
age
who
participates
in
an
internet
29
fantasy
sports
contest.
The
bill
also
defines
internet
fantasy
30
sports
contest
adjusted
revenues,
internet
fantasy
sports
31
contest
service
provider,
and
location
percentage.
32
New
Code
section
99E.2
provides
that
the
system
of
entering
33
an
internet
fantasy
sports
contest
is
legal
when
conducted
by
a
34
licensed
internet
fantasy
sports
contest
service
provider
as
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provided
in
the
new
Code
chapter.
1
New
Code
section
99E.3
establishes
the
powers
of
the
racing
2
and
gaming
commission
in
relation
to
internet
fantasy
sports
3
contests
and
internet
fantasy
sports
contest
service
providers.
4
Specifically,
the
new
Code
section
authorizes
the
commission
5
to
investigate
and
license
internet
fantasy
sports
contest
6
service
providers,
assess
fines
and
revoke
or
suspend
licenses,
7
impose
penalties
for
violations
of
the
new
Code
chapter,
and
8
take
any
other
action
to
enforce
the
requirements
of
the
new
9
Code
chapter.
10
New
Code
section
99E.4
establishes
the
requirements
for
an
11
applicant
to
be
granted
a
license
to
conduct
internet
fantasy
12
sports
contests.
The
Code
section
allows
the
commission
13
to
charge
the
applicant
a
fee
for
the
department
of
public
14
safety,
division
of
criminal
investigation,
to
defray
the
15
costs
associated
with
any
investigation.
The
new
Code
16
section
provides
that
a
license
shall
not
be
issued
if
there
17
is
evidence
that
the
applicant
has
failed
to
meet
certain
18
qualifying
requirements.
A
person
who
knowingly
makes
a
19
false
statement
on
the
application
is
guilty
of
an
aggravated
20
misdemeanor.
21
New
Code
section
99E.5
establishes
the
terms
and
conditions
22
of
licenses
issued
to
conduct
internet
fantasy
sports
contests.
23
The
Code
section
provides
that
a
license
may
be
issued
for
24
a
period
of
not
more
than
three
years
and
provides
that
25
the
annual
license
fee
shall
be
$500.
The
new
Code
section
26
also
provides
for
the
payment
of
a
regulatory
fee
to
be
set
27
by
the
racing
and
gaming
commission
based
on
the
costs
of
28
administering
and
enforcing
the
new
Code
chapter.
The
new
29
Code
section
further
provides
that
each
licensee
shall
receive
30
a
credit
for
the
amount
of
the
regulatory
fee
paid
against
31
taxes
to
be
paid
pursuant
to
the
new
Code
chapter.
The
new
32
Code
section
provides
that
a
licensed
internet
fantasy
sports
33
contest
service
provider
shall
prevent
any
employees
and
34
certain
family
members
from
participating
in
internet
fantasy
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sports
contests
on
the
service
provider’s
digital
platform,
1
verify
that
internet
fantasy
sports
contest
players
located
2
in
this
state
are
21
or
older,
ensure
that
participants
in
3
a
game
or
contest
shall
not
be
allowed
to
enter
an
internet
4
fantasy
sports
contest
involving
that
game
or
contest,
prohibit
5
internet
fantasy
sports
contests
based
upon
any
interscholastic
6
or
intercollegiate
athletic
contest
or
any
amateur
athletic
7
contest
or
competition
in
which
all
participants
are
under
8
the
age
of
21,
permit
individuals
to
restrict
themselves
9
from
entering
an
internet
fantasy
sports
contest,
perform
an
10
independent
audit,
and
pay
the
tax
imposed
by
the
new
Code
11
chapter.
12
New
Code
section
99E.6
provides
for
a
tax
of
7.5
percent
13
to
be
imposed
on
internet
fantasy
sports
contest
adjusted
14
revenues.
The
bill
defines,
in
new
Code
section
99E.1,
15
internet
fantasy
sports
contest
adjusted
revenues
as
the
total
16
of
fees
and
charges
collected,
less
winnings,
in
an
internet
17
fantasy
sports
contest
multiplied
by
the
percentage
of
fees
18
and
charges
paid
by
participants
who
are
located
in
this
state
19
in
that
contest.
The
bill
provides
that
of
the
revenues
20
collected,
an
amount
equal
to
.5
percent
of
internet
fantasy
21
sports
contest
adjusted
revenues
is
transferred
to
a
special
22
revenue
account
in
the
general
fund
to
be
used,
subject
to
an
23
appropriation,
by
the
department
of
public
health
for
gambling
24
treatment
with
the
remainder
of
revenues
collected
to
be
25
deposited
in
the
rebuild
Iowa
infrastructure
fund.
26
New
Code
section
99E.7
provides
that
a
person
under
the
27
age
of
21
shall
not
enter
an
internet
fantasy
sports
contest.
28
A
person
who
violates
this
Code
section
commits
a
scheduled
29
violation
under
Code
section
805.8C
and
is
subject
to
a
$500
30
fine.
Code
section
805.8C
is
amended
to
reflect
this
violation
31
and
applicable
fine.
32
New
Code
section
99E.8
authorizes
the
division
of
criminal
33
investigation
of
the
department
of
public
safety
to
investigate
34
licensee
compliance
with
the
requirements
of
the
new
Code
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613
chapter.
1
New
Code
section
99E.9
requires
a
licensee
to
offset
2
account
balance
withdrawals
of
an
internet
fantasy
sports
3
contest
player
who
is
a
debtor
in
an
amount
equal
to
or
greater
4
than
$1,200,
subject
to
the
requirements
of
this
new
Code
5
section.
The
bill
provides
that
this
Code
section
shall
not
be
6
implemented
until
July
1,
2019.
7
New
Code
section
99E.10
provides
that,
in
addition
to
any
8
other
penalty
specified
in
the
new
Code
chapter,
a
person
who
9
willfully
fails
to
comply
with
the
requirements
of
the
Code
10
chapter
commits
a
class
“D”
felony
and
shall
be
barred
for
life
11
from
internet
fantasy
sports
contests.
12
Code
section
232C.4,
concerning
emancipation
orders
and
13
minors,
is
amended
to
reflect
that
an
emancipated
minor
is
14
subject
to
the
age
restrictions
for
internet
fantasy
sports
15
contests.
16
Code
section
714B.10,
concerning
prize
promotions,
is
17
amended
to
exempt
internet
fantasy
sports
contests
from
the
18
Code
chapter.
19
The
bill
provides
for
the
issuance
of
a
transitional
license
20
by
the
racing
and
gaming
commission
to
a
person
to
conduct
21
internet
fantasy
sports
contests
in
this
state
if
the
person
22
has
been
granted
a
license
or
registration
by
two
or
more
other
23
states
to
conduct
internet
fantasy
sports
contests.
The
bill
24
provides
that
the
transitional
license
shall
be
valid
until
the
25
earlier
of
the
date
the
commission
grants
or
denies
a
license
26
to
the
person
or
twelve
months
from
the
date
the
commission
27
accepts
applications
for
issuance
of
a
license.
28
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(5)
87
ec/nh
14/
14