Text: SF02390 Text: SF02392 Text: SF02300 - SF02399 Text: SF Index Bills and Amendments: General Index Bill History: General Index
PAG LIN 1 1 Section 1. Section 99B.1, Code 1999, is amended by adding 1 2 the following new subsection: 1 3 NEW SUBSECTION. 24. "Unrelated entity" means a person 1 4 that has a separate and distinct state charter and tax 1 5 identification number from any other person, and, if the 1 6 person is an individual, an individual that is not related by 1 7 law or by consanguinity. 1 8 Sec. 2. Section 99B.2, subsection 3, paragraph e, Code 1 9 1999, is amended to read as follows: 1 10 e. Except as permitted by subsection 3, paragraph "a", 1 11 gross receipts derived from the conduct of bingo shall not be 1 12 commingled with other funds of the licensed organization. 1 13
Except as permitted by paragraph "c", subparagraphs (3) and1 14 (4), gross receipts shall not be transferred to another1 15 account maintained by the licensed organization.1 16 Sec. 3. Section 99B.5, subsection 1, paragraph g, Code 1 17 1999, is amended by striking the paragraph. 1 18 Sec. 4. Section 99B.5, subsection 3, Code 1999, is amended 1 19 to read as follows: 1 20 3. A licensee under this section may hold onea real 1 21 property raffle per calendar year at which the value of the1 22 real property may exceed two hundred dollars in lieu of the1 23 annual raffle authorized in subsection 1, paragraph "g", if 1 24 all of the following requirements are met: 1 25 a. The licensee has submitted the special real property 1 26 raffle license application and a fee of one hundred dollars to 1 27 the department, has been issued a license, and prominently 1 28 displays the license at the drawing area of the raffle. 1 29 b. The real property was acquired by gift or donation or 1 30 has been owned by the licensee for a period of at least five 1 31 years. 1 32 c. All other requirements of this section and section 1 33 99B.2 are met , except that the cost to participate in the1 34 raffle may exceed one dollar for each participant. 1 35 d. Receipts from the raffle are kept in a separate 2 1 financial account. 2 2 e. A cumulative report for the raffle on a form determined 2 3 by the department and one percent of the gross receipts are 2 4 submitted to the department within sixty days of the raffle 2 5 drawing. The one percent of the gross receipts shall be 2 6 retained by the department to pay for the cost of the special 2 7 audit. 2 8 Sec. 5. Section 99B.6, Code 1999, is amended by adding the 2 9 following new subsection: 2 10 NEW SUBSECTION. 7A. With the exception of backgammon or 2 11 other similar board game, any game involving dice is 2 12 prohibited, if the wager exceeds five dollars. 2 13 Sec. 6. Section 99B.7, subsection 1, paragraph c, 2 14 unnumbered paragraph 1, Code 1999, is amended to read as 2 15 follows: 2 16 Cash or merchandise prizes may be awarded in the game of 2 17 bingo and, except as otherwise provided in this paragraph, 2 18 shall not exceed one hundred dollars. Merchandise prizes may 2 19 be awarded in the game of bingo, but the actual retail value 2 20 of the prize, or if the prize consists of more than one item, 2 21 unit or part, the aggregate retail value of all items, units 2 22 or parts, shall not exceed the maximum provided by this 2 23 paragraph. A bingo licensee may conduct one jackpot game per 2 24 bingo occasion and may only conduct one jackpot game at a 2 25 time. In a jackpot bingo game, may be conducted once during2 26 any twenty-four hour period in whichthe prize may begin at 2 27 not more than threefive hundred dollars in cash or actual 2 28 retail value of merchandise prizes and may be increased by not 2 29 more than one hundred dollars after each bingo occasion. 2 30 However, the cost of play in a jackpot bingo game shall not be 2 31 increased and the jackpot shall not amount to more than eight2 32 fifteen hundred dollars in cash or actual retail value of 2 33 merchandise prizes. A jackpot bingo game is not prohibited by 2 34 paragraph "h". A bingo occasion shall not last for longer 2 35 than four consecutive hours. A qualified organization shall 3 1 not hold more than fourteen bingo occasions per month. Bingo 3 2 occasions held under a limited license shall not be counted in 3 3 determining whether a qualified organization has conducted 3 4 more than fourteen bingo occasions per month, nor shall bingo 3 5 occasions held under a limited license be limited to four 3 6 consecutive hours. With the exception of a limited license 3 7 bingo, no more than three bingo occasions per week shall be 3 8 held within a structure or building and only one person 3 9 licensed to conduct games under this section may hold bingo 3 10 occasions within a structure or building. A licensed 3 11 qualified organization shall not conduct free games. 3 12 Sec. 7. Section 99B.7, subsection 1, paragraphs d, e, and 3 13 q, Code 1999, are amended to read as follows: 3 14 d. Cash prizes shall not be awarded in games other than 3 15 bingo and raffles. The value of a prize shall not exceed one3 16 thousand dollars and merchandise prizes shall not be3 17 repurchased. If a prize consists of more than one item, unit,3 18 or part, the aggregate value of all items, units, or parts3 19 shall not exceed one thousand dollars. However, one raffle3 20 may be conducted per calendar year at which prizes having a3 21 combined value of more than one thousand dollars may be3 22 awarded. If the prize is merchandise, its value shall be3 23 determined by purchase price paid by the organization or3 24 donor.3 25 e. Except as provided in paragraph "d" of this subsection3 26 with respect to an annual raffle, the cost to a participant3 27 for each game shall not exceed one dollar.3 28 q. A licensee under this section may hold onea real 3 29 property raffle per calendar year at which the value of the3 30 real property may exceed one thousand dollars in lieu of the3 31 annual raffle authorized in subsection 1, paragraph "d", if3 32 all of the following requirements are met:3 33 (1) The licensee has submitted the special real property3 34 raffle license application and a fee of one hundred dollars to3 35 the department, has been issued a license, and prominently4 1 displays the license at the drawing area of the raffle.4 2 (2) The real property was acquired by gift or donation or4 3 has been owned by the licensee for a period of at least five4 4 years.4 5 (3) All other requirements of this section and section4 6 99B.2 are met, except that the cost to participate in the4 7 raffle may exceed one dollar for each participant.4 8 (4) Receipts from the raffle are kept in a separate4 9 financial account.4 10 (5) A cumulative report for the raffle on a form4 11 determined by the department and one percent of the gross4 12 receipts are submitted to the department within sixty days of4 13 the raffle drawing. The one percent of the gross receipts4 14 shall be retained by the department to pay for the cost of the4 15 special auditas provided in section 99B.5, subsection 3. 4 16 Sec. 8. Section 99B.7, subsection 3, paragraph c, 4 17 unnumbered paragraph 1, Code 1999, is amended to read as 4 18 follows: 4 19 A qualified organization shall distribute amounts awarded 4 20 as prizes on the day they are won. A qualified organization 4 21 shall dedicate and distribute the balance of the net receipts 4 22 received within a quarter and remaining after deduction of 4 23 reasonable expenses, charges, fees, taxes, and deductions 4 24 allowed by this chapter , before the quarterly report required4 25 for that quarter under section 99B.2, subsection 4, is due4 26 within thirty days following the end of each calendar quarter 4 27 during which the gambling occurred. The amount dedicated and 4 28 distributed must equal at least seventy-five percent of the 4 29 net receipts. A person desiring to hold the net receipts for 4 30 a period longer than permitted under this paragraph shall 4 31 apply to the department for special permission and upon good 4 32 cause shown the department may grant the request. 4 33 Sec. 9. Section 99B.7, subsection 3, Code 1999, is amended 4 34 by adding the following new paragraph: 4 35 NEW PARAGRAPH. d. The department may issue a limited 5 1 license without fee to a qualified organization if the total 5 2 cost of the prizes to be distributed at a raffle conducted by 5 3 the qualified organization is one thousand dollars or less. 5 4 If a prize consists of more than one item, unit or part, the 5 5 aggregate cost of all items, units or parts shall not exceed 5 6 one thousand dollars. If the prize is merchandise, its cost 5 7 shall be determined by the purchase price paid by the 5 8 organization. If the prize was donated to the organization, 5 9 its cost shall be determined by the purchase price paid by the 5 10 donor. 5 11 Sec. 10. Section 99B.7, Code 1999, is amended by adding 5 12 the following new subsection: 5 13 NEW SUBSECTION. 3A. If a licensee derives ninety percent 5 14 or more of its total income from conducting bingo, raffles, or 5 15 small games of chance, at least seventy-five percent of the 5 16 licensee's net receipts shall be distributed to an unrelated 5 17 entity for an educational, civic, public, charitable, 5 18 patriotic, or religious use. 5 19 Sec. 11. Section 99B.7, subsection 6, paragraph a, Code 5 20 1999, is amended to read as follows: 5 21 a. Except as provided in this paragraph, a person shall 5 22 not be compensated for services rendered in connection with a 5 23 game of skill, game of chance, or raffle conducted under this 5 24 section. This section forbids payment of compensation to 5 25 persons including, but not limited to, managers, callers, 5 26 cashiers, floor workers,janitorial personnel, accountants and 5 27 bookkeepers. However, up to four floor workers per one 5 28 hundred players, participating in the bingo occasion, may be 5 29 employed. Any other payment of compensation to floor workers 5 30 is prohibited. The privilege of selling merchandise on the 5 31 premises during a bingo occasion is deemed to be compensation. 5 32 However, not more than four persons per one hundred players,5 33 participating in the bingo occasion may be employed.An 5 34 employee under this paragraph need not be a member of the 5 35 qualified organization or a regular participant in the 6 1 activities of the qualified organization or in an educational, 6 2 civic, public, charitable, patriotic, or religious 6 3 organization to which the net receipts are dedicated by the 6 4 qualified organization. The wages of an employee shall not 6 5 exceed the federal minimum wage. This section does not 6 6 prohibit the employment of one or more individuals to serve as 6 7 security officers. A person who knowingly pays or receives 6 8 compensation in violation of this section commits a fraudulent 6 9 practice. 6 10 Sec. 12. Section 99B.8, Code 1999, is amended to read as 6 11 follows: 6 12 99B.8 ANNUAL GAME NIGHT. 6 13 1. Games of skill, games of chance, card games, and 6 14 rafflescasino-type games other than slot machines may 6 15 lawfully maybe conducted during a period of twelve 6 16 consecutive hours once each year by any person. The games or6 17 rafflesmay be conducted at any location except one for which 6 18 a license is required pursuant to section 99B.3 or section 6 19 99B.5, but only if all of the following are complied with: 6 20 a. The sponsor of the event has been issued a license 6 21 pursuant to subsection 3 and prominently displays that license 6 22 on the premises covered by the license. 6 23 b. A bona fide social or employment relationship exists 6 24 between the sponsor and all of the participants. 6 25 c. No participant pays any consideration of any nature, 6 26 either directly or indirectly, to participate in the games or6 27 raffles. 6 28 d. All money or other items wagered are provided to the 6 29 participant free by the sponsor. 6 30 e. The person conducting the game or rafflereceives no 6 31 consideration, either directly or indirectly, other than good 6 32 will. 6 33 f. During the entire time activities permitted by this 6 34 section are being engaged in, no other gambling is engaged in 6 35 at the same location. 7 1 2. The other provisions of this section notwithstanding, 7 2 if the games or rafflesare conducted by a qualified 7 3 organization also licensed under section 99B.7, the sponsor 7 4 may charge an entrance fee or a fee to participate in the 7 5 games or raffles, and participants may wager their own funds 7 6 and pay an entrance or other fee for participation, provided 7 7 that a participant may not expend more than a total of fifty 7 8 dollars for all fees and wagers. The provisions of section 7 9 99B.7, subsection 3, paragraphs "b" and "c", shall apply to 7 10 games and rafflesconducted by a qualified organization 7 11 pursuant to this section. 7 12 3. The department of inspections and appeals may issue a 7 13 license pursuant to this section only once during a calendar 7 14 year to any one person. The license may be issued only upon 7 15 submission to the department of an application and a license 7 16 fee of twenty-five dollars. 7 17 4. However, an organization may sponsor one or more game 7 18 nights using play money for participation by students without 7 19 the organization obtaining a license otherwise required by 7 20 this section if the organization obtains prior approval for 7 21 the game night from the board of directors of the accredited 7 22 public school or the authorities in charge of the nonpublic 7 23 school accredited by the state board of education for whose 7 24 students the game night is to be held. 7 25 5. However, notwithstanding subsection 1, paragraphs "b" 7 26 and "c", if the games or rafflesare conducted by a qualified 7 27 organization issued a license pursuant to subsection 3, the 7 28 sponsor may charge an entrance fee to a participant and the 7 29 sponsor need not have a bona fide social relationship with the 7 30 participant. 7 31 Sec. 13. Section 422.43, subsections 2 and 3, Code 7 32 Supplement 1999, are amended to read as follows: 7 33 2. There is imposed a tax of five percent upon the gross 7 34 receipts derived from the operation of all forms of amusement 7 35 devices and games of skill, games of chance, raffles, and 8 1 bingo games as defined in chapter 99B, operated or conducted 8 2 within the state, the tax to be collected from the operator in 8 3 the same manner as for the collection of taxes upon the gross 8 4 receipts of tickets or admission as provided in this section. 8 5 The tax shall also be imposed upon the gross receipts derived 8 6 from the sale of lottery tickets or shares pursuant to chapter 8 7 99E. The tax on the lottery tickets or shares shall be 8 8 included in the sales price and distributed to the general 8 9 fund as provided in section 99E.10. The tax imposed pursuant 8 10 to this subsection does not apply to raffles authorized 8 11 pursuant to section 99B.7, subsection 3, paragraph "d". 8 12 3. TheExcept for a raffle authorized pursuant to section 8 13 99B.7, subsection 3, paragraph "d", the tax thus imposed 8 14 covers all receipts from the operation of games of skill, 8 15 games of chance, raffles and bingo games as defined in chapter 8 16 99B, and musical devices, weighing machines, shooting 8 17 galleries, billiard and pool tables, bowling alleys, pinball 8 18 machines, slot-operated devices selling merchandise not 8 19 subject to the general sales taxes and on all receipts from 8 20 devices or systems where prizes are in any manner awarded to 8 21 patrons and upon the receipts from fees charged for 8 22 participation in any game or other form of amusement, and 8 23 generally upon the gross receipts from any source of amusement 8 24 operated for profit, not specified in this section, and upon 8 25 the gross receipts from which no tax is collected for tickets 8 26 or admission, but no tax shall be imposed upon any activity 8 27 exempt from sales tax under section 422.45, subsection 3. 8 28 Every person receiving gross receipts from the sources defined 8 29 in this section is subject to all provisions of this division 8 30 relating to retail sales tax and other provisions of this 8 31 chapter as applicable. 8 32 SF 2391 8 33 pf/cc/26
Text: SF02390 Text: SF02392 Text: SF02300 - SF02399 Text: SF Index Bills and Amendments: General Index Bill History: General Index
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