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PAG LIN 1 1 Section 1. Section 99F.6, subsection 4, paragraph a, Code 1 2 2001, is amended to read as follows: 1 3 a. Before a license is granted, the division of criminal 1 4 investigation of the department of public safety shall conduct 1 5 a thorough background investigation of the applicant for a 1 6 license to operate a gambling game operation on an excursion 1 7 gambling boat. The applicant shall provide information on a 1 8 form as required by the division of criminal investigation. A 1 9 qualified sponsoring organization licensed to operate gambling 1 10 games under this chapter shall distribute the receipts of all 1 11 gambling games, less reasonable expenses, charges, taxes, 1 12 fees, and deductions allowed under this chapter, as winnings 1 13 to players or participants or shall distribute the receipts 1 14 for educational, civic, public, charitable, patriotic, or 1 15 religious uses as defined in section 99B.7, subsection 3, 1 16 paragraph "b". However, if a licensee who is also licensed to 1 17 conduct pari-mutuel wagering at a horse racetrack has unpaid 1 18 debt from the pari-mutuel racetrack operations, the first 1 19 receipts of the gambling games operated within the racetrack 1 20 enclosure less reasonable operating expenses, taxes, and fees 1 21 allowed under this chapter shall be first used to pay the 1 22 annual indebtedness. The commission shall authorize, subject 1 23 to the debt payments for horse racetracks and the provisions 1 24 of paragraph "b" for dog racetracks, a licensee who is also 1 25 licensed to conduct pari-mutuel dog or horse racing to use 1 26 receipts from gambling games within the racetrack enclosure to 1 27 supplement purses for races particularly for Iowa-bred horses 1 28 pursuant to an agreement which shall be negotiated between the 1 29 licensee and representatives of the dog or horse owners. If 1 30 an agreement to use receipts from gambling games for purses 1 31 and supplements for horse racing exists on July 1, 2002, the 1 32 agreement shall remain in effect until its termination and, 1 33 thereafter, the annual subsidy from gambling game receipts 1 34 used for the purses and supplements for horse racing in an 1 35 agreement shall not exceed seven million dollars plus the 2 1 amount wagered on live horse races held at the racetrack 2 2 enclosure during the preceding calendar year. Any annual 2 3 decrease in subsidy to a licensee resulting from an agreement 2 4 regarding gambling game receipts used for purses and 2 5 supplements for horse racing entered into after July 1, 2002, 2 6 shall be distributed for educational, civic, public, 2 7 charitable, patriotic, or religious uses as otherwise provided 2 8 in this paragraph. A qualified sponsoring organization shall 2 9 not make a contribution to a candidate, political committee, 2 10 candidate's committee, state statutory political committee, 2 11 county statutory political committee, national political 2 12 party, or fund-raising event as these terms are defined in 2 13 section 56.2. The membership of the board of directors of a 2 14 qualified sponsoring organization shall represent a broad 2 15 interest of the communities. 2 16 Sec. 2. NEW SECTION. 99F.7A PARI-MUTUEL HORSE RACETRACK 2 17 ENCLOSURE GOVERNING BOARD. 2 18 1. a. Notwithstanding section 99D.9 or 99F.4A, if the 2 19 proposition to operate gambling games at a horse racetrack 2 20 enclosure is approved by the county electorate pursuant to 2 21 section 99F.7, subsection 10, paragraph "d", at the general 2 22 election held in 2002, the commission shall transfer the pari- 2 23 mutuel wagering and gambling game licenses at the horse 2 24 racetrack enclosure to a board of directors consisting of the 2 25 following members: 2 26 (1) The members of the board of supervisors of the county 2 27 in which the horse racetrack enclosure is located or their 2 28 designees. If a member of the board of supervisors elects not 2 29 to serve, the board of supervisors shall select a designee. A 2 30 designee shall serve at the pleasure of the board of 2 31 supervisors. 2 32 (2) A member of the city council of the six most populous 2 33 cities located in the county in which the horse racetrack 2 34 enclosure is located or a designee. A city council may select 2 35 a designee in lieu of a council member and the designee shall 3 1 serve at the council's pleasure. 3 2 (3) A member of a city council of a city other than the 3 3 six most populous cities located in the county in which the 3 4 horse racetrack enclosure is located or a designee. The 3 5 council member or a designee shall be selected by a conference 3 6 of all city council members from the affected cities. The 3 7 date, time, and location of a conference shall be determined 3 8 by the mayor of the most populous city of the affected cities. 3 9 The mayor shall give notice of a conference to the city clerk 3 10 of each affected city at least fourteen days before the date 3 11 of the conference. A selected designee shall serve at the 3 12 conference's pleasure. 3 13 (4) A member appointed by the governing body of the united 3 14 way of central Iowa. 3 15 (5) A member appointed by the governing body of the Polk- 3 16 Des Moines taxpayers' association. 3 17 (6) A member appointed by the governing body of the south 3 18 central Iowa federation of labor. 3 19 (7) A member appointed by the governing body of the 3 20 greater Des Moines partnership. 3 21 (8) A member appointed by the governing body of the 3 22 greater Des Moines community foundation. 3 23 (9) An owner of a race horse appointed by the other 3 24 members of the board of directors. 3 25 b. A member of the board of directors other than a 3 26 designee or county supervisor shall be appointed to a three- 3 27 year term of office and shall serve not more than two 3 28 consecutive terms. A vacancy on the board of directors shall 3 29 be filled in the same manner as the predecessor was selected. 3 30 c. If an organization or association appointing a member 3 31 of the board of directors pursuant to paragraph "a", 3 32 subparagraphs (4) through (8) ceases to exist, the remaining 3 33 members of the board of directors shall appoint a successor 3 34 who is an eligible elector of the county to represent the 3 35 public at large. 4 1 2. The board of directors created pursuant to subsection 1 4 2 shall organize annually by the election of a chairperson, vice 4 3 chairperson, and other officers as deemed necessary from among 4 4 its members. The initial meeting of the board shall be called 4 5 by the chairperson of the board of supervisors. The board 4 6 shall adopt rules of procedure and take actions as may be 4 7 reasonable or appropriate to supervise and administer the 4 8 gambling game operations of the racetrack enclosure. 4 9 Sec. 3. Section 99F.11, unnumbered paragraph 1, Code 2001, 4 10 is amended to read as follows: 4 11 A tax is imposed on the adjusted gross receipts received 4 12 annually from gambling games authorized under this chapter at 4 13 the rate of five percent on the first one million dollars of 4 14 adjusted gross receipts, at the rate of ten percent on the 4 15 next two million dollars of adjusted gross receipts, and at 4 16 the rate of twenty percent on any amount of adjusted gross 4 17 receipts over three million dollars. However, beginning 4 18 January 1, 1997, the rate on any amount of adjusted gross 4 19 receipts over three million dollars from gambling games at 4 20 racetrack enclosures is twenty-two percent and shall increase 4 21 by two percent each succeeding calendar year until the rate is 4 22 thirty-six percent. However, at racetrack enclosures at which 4 23 the total amount of adjusted gross receipts from gambling 4 24 games annually is not more than seventy million dollars, the 4 25 tax rate on the amount of adjusted gross receipts over three 4 26 million dollars from gambling games is the rate which was in 4 27 effect on December 31, 2001. The taxes imposed by this 4 28 section shall be paid by the licensee to the treasurer of 4 29 state within ten days after the close of the day when the 4 30 wagers were made and shall be distributed as follows: 4 31 Sec. 4. EFFECTIVE DATE. This Act, being deemed of 4 32 immediate importance, takes effect upon enactment and the tax 4 33 rate change in section 3 of this Act applies on and after the 4 34 effective date of this Act. 4 35 EXPLANATION 5 1 This bill relates to agreements to use gambling game 5 2 receipts for purses and supplements for horse races and 5 3 creates a board of directors for the licensee of the horse 5 4 racetrack enclosure in Polk county. 5 5 The bill provides that any agreement to use gambling game 5 6 receipts for purses and supplements for horse racing which is 5 7 entered into after July 1, 2002, shall not exceed $7 million 5 8 annually plus the amount wagered on live horse races held at 5 9 the racetrack enclosure for the preceding calendar year. 5 10 The bill also provides that if an agreement relating to 5 11 such receipts used for purses and supplements for horse racing 5 12 which is entered into after July 1, 2002, results in an annual 5 13 reduction in subsidy to the licensee, the savings shall be 5 14 distributed for educational, civic, public, charitable, 5 15 patriotic, or religious uses. 5 16 The bill also provides that if the continuation of gambling 5 17 games is approved at the general election in 2002, the state 5 18 racing and gaming commission shall transfer the pari-mutuel 5 19 wagering and gambling game licenses at the horse racetrack 5 20 enclosure to a board of directors composed of elected county 5 21 and city officials, representatives of labor, a taxpayer 5 22 association, united way, other organizations which are 5 23 potential recipients of gambling profits, and a race horse 5 24 owner. The board of directors include members of the board of 5 25 supervisors of Polk county or their designees, a city council 5 26 member or designee from each of the six largest cities in Polk 5 27 county, a city council member or designee from one of the 5 28 remaining cities in Polk county, one member appointed by each 5 29 of the following organizations, including united way of 5 30 central Iowa, the Polk-Des Moines taxpayers' association, 5 31 south central Iowa federation of labor, greater Des Moines 5 32 partnership, and greater Des Moines community foundation, and 5 33 the owner of a race horse. If a designee is appointed in lieu 5 34 of a supervisor or city council member, the designee shall be 5 35 selected by all of the affected supervisors or city council 6 1 members and the designee shall serve at the pleasure of the 6 2 appointing board or council. A member of the board of 6 3 directors other than a designee or county supervisor shall be 6 4 appointed to a three-year term of office and shall serve not 6 5 more than two consecutive terms. 6 6 If an organization or association appointing a member of 6 7 the board of directors ceases to exist, the remaining member 6 8 of the board of directors shall appoint a successor who is an 6 9 eligible elector of Polk county to represent the public at 6 10 large. 6 11 The board of directors is to organize annually by electing 6 12 officers as deemed necessary. The board of directors shall 6 13 adopt rules of procedure and take actions as may be reasonable 6 14 or appropriate to supervise and administer the gambling game 6 15 operations of the racetrack enclosure. 6 16 The bill also provides that the tax rate which was in 6 17 effect on December 31, 2001, shall be levied on the adjusted 6 18 gross receipts from gambling games between $3 million and $70 6 19 million at racetrack enclosures at which the total adjusted 6 20 gross receipts received from gambling games annually is not 6 21 more than $70 million. The tax rate on the adjusted gross 6 22 receipts over $3 million from gambling games at racetrack 6 23 enclosures was 30 percent for the calendar year ending 6 24 December 31, 2001. 6 25 The bill takes effect upon enactment and the tax rate 6 26 change in Code section 99F.11 as amended by this bill applies 6 27 on and after the effective date after this Act. 6 28 LSB 7095SV 79 6 29 tj/cls/14
Text: SF02326 Text: SF02328 Text: SF02300 - SF02399 Text: SF Index Bills and Amendments: General Index Bill History: General Index
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