Text: SSB00039 Text: SSB00041 Text: SSB00000 - SSB00099 Text: SSB Index Bills and Amendments: General Index Bill History: General Index
PAG LIN 1 1 Section 1. Section 99B.1, subsection 2, Code 1995, is 1 2 amended by striking the subsection. 1 3 Sec. 2. Section 99B.1, subsection 14, Code 1995, is 1 4 amended by striking the subsection and inserting in lieu 1 5 thereof the following: 1 6 14. "Game of chance" means a game whereby the result is 1 7 determined by chance and includes the game defined as bingo. 1 8 A game of chance does not include a game, such as poker, in 1 9 which some level of skill affects the results of the game. 1 10 Games of chance do not include slot machines or pull-tabs. A 1 11 game of chance is not an amusement device. 1 12 Sec. 3. Section 99B.1, subsection 15, Code 1995, is 1 13 amended by striking the subsection and inserting in lieu 1 14 thereof the following: 1 15 15. "Game of skill" means a game in which skill has a 1 16 bearing on the results. A game with some level of skill is 1 17 neither a game of chance nor a gambling device as defined in 1 18 section 725.9. A game of skill does not include a device if 1 19 adapted, possessed, and used in accordance with section 1 20 99B.10. 1 21 Sec. 4. Section 99B.1, Code 1995, is amended by adding the 1 22 following new subsection: 1 23 NEW SUBSECTION. 22A. "Slot machine" means a mechanical, 1 24 electronic, or video gambling device into which a player 1 25 deposits coins, tokens, or currency and from which credits, 1 26 tickets, tokens, or coins are paid out when a particular 1 27 random, configuration of symbols appears on the reels, 1 28 simulated reels, or screen of the device. A slot machine may 1 29 have a lever, buttons, or other means to activate or stop the 1 30 play. 1 31 Sec. 5. Section 99B.10, unnumbered paragraph 1, Code 1995, 1 32 is amended to read as follows: 1 33 It is lawful to own, possess, and offer for use by any 1 34 person at any location anelectrical or mechanicalamusement 1 35 device, but only if all of the following are complied with: 2 1 Sec. 6. Section 99B.10, subsection 1, Code 1995, is 2 2 amended to read as follows: 2 3 1. Aprize of merchandise exceeding five dollars in value2 4orcash prize shall not be awarded for use of the device. 2 5 However, amechanical ormerchandise prize not exceeding five 2 6 dollars in value may be awarded and an amusement device may be 2 7 designed or adapted to award a prize or one or more free games 2 8 or portions of games without payment of additional 2 9 consideration by the participant. 2 10 Sec. 7. Section 99B.10, Code 1995, is amended by adding 2 11 the following new subsection: 2 12 NEW SUBSECTION. 4. An amusement device shall have an 2 13 identification tag or plate with the name, address, and retail 2 14 sales tax permit number of the owner. The identification tag 2 15 or plate must be no less than two and one-half inches square 2 16 in size and must be affixed in a visible and easily accessible 2 17 location on the device. An owner or lessee of an amusement 2 18 device shall not knowingly fail to display an identification 2 19 tag or plate with the name, address, and retail sales tax 2 20 permit number of the owner or lessee before the device is 2 21 offered for commercial use by the public. 2 22 Sec. 8. Section 99B.10, unnumbered paragraph 3, Code 1995, 2 23 is amended by striking the unnumbered paragraph and inserting 2 24 in lieu thereof the following: 2 25 NEW UNNUMBERED PARAGRAPH. When used and possessed in 2 26 accordance with this section, an amusement device is not a 2 27 game of chance, a game of skill, or a gambling device as 2 28 defined in section 725.9. A slot machine is not an amusement 2 29 device. An amusement device is not a gambling game authorized 2 30 under chapter 99F and the use of an amusement device which 2 31 complies with this section is not gambling or gaming. 2 32 Sec. 9. Section 99B.10, Code 1995, is amended by adding 2 33 the following new unnumbered paragraph: 2 34 NEW UNNUMBERED PARAGRAPH. This section does not apply to 2 35 an amusement device owned, possessed, and used for personal, 3 1 noncommercial purpose. 3 2 Sec. 10. Section 99B.14, Code 1995, is amended by striking 3 3 the section and inserting in lieu thereof the following: 3 4 99B.14 DISCIPLINARY ACTION &endash; LICENSE DENIAL, SUSPENSION, 3 5 OR REVOCATION, AND CIVIL PENALTY. 3 6 1. The director may deny a license application, suspend a 3 7 license issued pursuant to this chapter for not more than one 3 8 year, revoke a license issued pursuant to this chapter for not 3 9 more than two years, impose a civil penalty of not more than 3 10 one thousand dollars per violation, or take more than one of 3 11 the actions specified in this subsection for a violation. 3 12 2. The director shall deny, suspend, or revoke a license, 3 13 or impose a civil penalty by delivering to the applicant or 3 14 the licensee by mail or personal service to the current 3 15 address of record, a notice setting forth the particular 3 16 reason for the action. The action becomes effective fifteen 3 17 days after the date of mailing or service of notice unless the 3 18 applicant or licensee gives written notice to the department 3 19 requesting a hearing before the expiration of the fifteen 3 20 days. If a hearing has been requested, the applicant or 3 21 licensee shall be given an opportunity for a prompt hearing. 3 22 An administrative law judge from the department of inspections 3 23 and appeals shall conduct the hearing and issue a proposed 3 24 decision. On the basis of the hearing or upon default of the 3 25 applicant or licensee, the determination involved in the 3 26 notice may be affirmed, modified, or denied by the director. 3 27 A copy of the decision shall be sent by mail or served 3 28 personally upon the applicant or licensee. A licensee or 3 29 applicant aggrieved by a decision of the director may seek 3 30 judicial review of the director's decision in accordance with 3 31 chapter 17A. 3 32 3. The suspension or revocation of a license or the 3 33 imposition of a civil penalty or a combination of the actions 3 34 shall be stayed pending the result of the hearing. Before a 3 35 hearing, the department may rescind the notice of denial, 4 1 suspension, revocation or civil penalty, or a combination of 4 2 the actions if the department is satisfied that the reason for 4 3 the denial, suspension, or revocation, or other disciplinary 4 4 action is or will be removed. 4 5 4. A license issued under this chapter may be suspended or 4 6 revoked, a civil penalty may be imposed, or a combination of 4 7 those actions may be taken for any of the following causes 4 8 including, but not limited to: 4 9 a. Misrepresentation of any material fact in the 4 10 application for the license. 4 11 b. A violation of any of the provisions of this chapter or 4 12 rules adopted pursuant to this chapter. 4 13 c. An event which would have resulted in disqualification 4 14 from receiving the license when originally issued. 4 15 d. A sale, hypothecation, or transfer of a license. 4 16 e. The failure or refusal on the part of a licensee to 4 17 submit a report when due to the department under this chapter. 4 18 Sec. 11. Section 725.9, subsection 2, Code 1995, is 4 19 amended by striking the subsection. 4 20 Sec. 12. Section 725.9, subsection 3, Code 1995, is 4 21 amended to read as follows: 4 22 3. "Gambling device" means a device used or adapted or 4 23 designed to be used for gambling and includes, but is not 4 24 limited to, roulette wheels, klondike tables, punchboards, 4 25 faro layouts, keno layouts, numbers tickets, slot machines, 4 26pinball machines,push cards, jar tickets, and pull-tabs. 4 27 However, "gambling device" does not include an antique slot 4 28 machine, antique pinball machine,or any device regularly 4 29 manufactured and offered for sale and sold as a toy, except 4 30 that any use ofsuch athe toy,or antique slot machineor4 31antique pinball machinefor gambling purposes constitutes 4 32 unlawful gambling. 4 33 Sec. 13. Section 725.9, subsection 5, Code 1995, is 4 34 amended to read as follows: 4 35 5. This chapter does not prohibit the possession of 5 1 gambling devices by a manufacturer or distributor if the 5 2 possession is solely for saleout of the statein another 5 3 jurisdiction including a tribal jurisdiction where possession 5 4 of the device is legalor for sale in the state or use in the5 5state if the use is licensed pursuant to either chapter 99B or5 6chapter 99E. 5 7 Sec. 14. Section 725.16, Code 1995, is amended by striking 5 8 the section and inserting in lieu thereof the following: 5 9 725.16 GAMBLING PENALTY. 5 10 1. A person who commits an offense declared in chapter 5 11 99B, except in section 99B.10, to be a misdemeanor is guilty 5 12 of a serious misdemeanor. 5 13 2. If an owner of a device claimed, promoted, or 5 14 identified as an amusement device commits an offense in 5 15 violation of section 99B.10, the owner is guilty of a class 5 16 "D" felony. 5 17 3. However, if an owner only violates section 99B.10, 5 18 subsection 4, the owner is guilty of a serious misdemeanor. 5 19 EXPLANATION 5 20 This bill amends the definitions of amusement device, game 5 21 of chance, and game of skill to distinguish between amusement 5 22 devices and gambling games. The bill also defines slot 5 23 machines and provides new identification requirements for 5 24 amusement devices. 5 25 The bill amends provisions relating to the issuance, 5 26 denial, suspension, and revocation of licenses to offer 5 27 gambling devices to the public. A civil penalty of not more 5 28 than $1,000 may also be imposed for failure to comply with 5 29 regulatory requirements. 5 30 The bill amends penalty sections under chapter 725 to 5 31 delete the definition of antique pinball machines, removes 5 32 pinball machines from the definition of gambling device, and 5 33 provides for tribal possession of gambling devices. The bill 5 34 also provides that the possession and operation of an 5 35 amusement device with an identification tag or plate is a 6 1 serious misdemeanor. A serious misdemeanor is punishable by 6 2 imprisonment for not more than one year, or by a fine of at 6 3 least $250 but not more $1,500, or by both imprisonment and 6 4 fine. 6 5 BACKGROUND STATEMENT 6 6 SUBMITTED BY THE AGENCY 6 7 Section 1 strikes the definition of "amusement device". 6 8 Because "amusement device" is defined by possession and use, 6 9 the qualifying language related to amusement devices is moved 6 10 to section 99B.10 where the legal use and possession of the 6 11 device is described. 6 12 Section 2 amends the definition of "game of chance" for 6 13 clarification and to show that pull-tabs and slot machines are 6 14 not included and that a game of chance is not an amusement 6 15 device. 6 16 Section 3 amends the definition of "game of skill" for 6 17 better clarification and to bring the definition up-to-date. 6 18 Section 4 adds a definition of "slot machine" to chapter 6 19 99B. References are made to slot machines, but no definition 6 20 currently exists. A definition is necessary to advise the 6 21 public of what constitutes a slot machine under chapter 99B. 6 22 Sections 5 and 6 are intended to clarify the Code section 6 23 on amusement devices, including that cash shall not be awarded 6 24 for using a device. 6 25 Section 7 adds a new identification requirement for persons 6 26 owning or leasing amusement devices to assist in the 6 27 regulation of legal devices. 6 28 Section 8 further defines "amusement devices". 6 29 Section 9 exempts amusement devices owned, possessed, and 6 30 used for personal, noncommercial purposes from the 6 31 requirements of section 99B.10. This refers to those devices 6 32 that an individual has in the individual's home for personal 6 33 use. 6 34 Section 10 amends the provision on revocation of licenses 6 35 by adding intermediate sanctions for violations of chapter 99B 7 1 and clarifying the contested case hearing process on adverse 7 2 agency actions. The department would have the authority to 7 3 suspend or revoke a license for a period of time or to impose 7 4 a civil penalty of up to $1,000. This language is needed to 7 5 provide the department with flexibility in bringing licensees 7 6 into compliance. Some violations would not warrant a 7 7 revocation, but may warrant suspension or civil penalty. The 7 8 language also clarifies that the department may deny a 7 9 license. 7 10 Section 11 deletes the definition of "antique pinball 7 11 machines" as explained later in the explanation to section 11. 7 12 Section 12 deletes pinball machines from the definition of 7 13 a gambling device under section 725.9. Pinball machines are 7 14 not designed or intended for use as a gambling device, but are 7 15 designed and intended for use as an amusement device. A 7 16 pinball machine used in accordance with section 99B.10 would 7 17 be legal. Antique pinball machines are being deleted from 7 18 this subsection. Since pinball machines are not being 7 19 considered as a gambling device, there is no need to exempt 7 20 antique pinball machines from the definition of gambling 7 21 device. Antique pinball machines would automatically be 7 22 considered a nongambling device. 7 23 Section 13 specifies who may legally possess gambling 7 24 devices. Tribal jurisdiction is being added as a result of 7 25 the Indian gaming compacts. 7 26 Section 14 rewrites and revises the penalty for offenses 7 27 under chapter 99B. Under current law, an offense of section 7 28 99B.10 is a class "D" felony. This amendment would make an 7 29 exception to this if the violation is only for the new 7 30 subsection on requiring an identification tag or plate &endash; this 7 31 would be a serious misdemeanor, which is the same as other 7 32 misdemeanor offenses under chapter 99B. 7 33 LSB 1186DP 76 7 34 tj/sc/14.1
Text: SSB00039 Text: SSB00041 Text: SSB00000 - SSB00099 Text: SSB Index Bills and Amendments: General Index Bill History: General Index
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