Senate Amendment 5061 PAG LIN 1 1 Amend the amendment, S=5045, to Senate File 2330 as 1 2 follows: 1 3 #1. By striking page 1, line 2, through page 4, 1 4 line 23, and inserting the following: 1 5 <# . By striking everything after the enacting 1 6 clause and inserting the following: 1 7 <Section 1. Section 99G.3, subsection 7, Code 1 8 2005, is amended to read as follows: 1 9 7. "Lottery", "lotteries", "lottery game", 1 10 "lottery games" or "lottery products" means any game 1 11 of chance approved by the board and operated pursuant 1 12 to this chapter and games using mechanical or 1 13 electronic devices, provided that the authority shall 1 14 not authorize a monitor vending machine or a player= 1 15 activated gaming machine that utilizes an internal 1 16 randomizer to determine winning and nonwinning plays 1 17 and that upon random internal selection of a winning 1 18 play dispenses coins, currency, or a ticket, credit, 1 19 or token to the player that is redeemable for cash or 1 20 a prize, and excluding gambling or gaming conducted 1 21 pursuant to chapter 99B, 99D, or 99F. 1 22 Sec. 2. Section 99G.3, Code 2005, is amended by 1 23 adding the following new subsection: 1 24 NEW SUBSECTION. 8A. "Monitor vending machine" 1 25 means a machine or other similar electronic device 1 26 that includes a video monitor and audio capabilities 1 27 that dispenses to a purchaser lottery tickets that 1 28 have been determined to be winning or losing tickets 1 29 by a predetermined pool drawing machine prior to the 1 30 dispensing of the tickets. 1 31 Sec. 3. NEW SECTION. 99G.30A MONITOR VENDING 1 32 MACHINE == TAX IMPOSED. 1 33 1. If revenues are generated from monitor vending 1 34 machines on or after September 1, 2006, then there 1 35 shall be a monitor vending machine excise tax imposed 1 36 on net monitor vending machine revenue receipts at the 1 37 rate of sixty=five percent. 1 38 2. a. The director of revenue shall administer 1 39 the monitor vending machine excise tax as nearly as 1 40 possible in conjunction with the administration of 1 41 state sales tax laws. The director shall provide 1 42 appropriate forms or provide appropriate entries on 1 43 the regular state tax forms for reporting local sales 1 44 and services tax liability. 1 45 b. All powers and requirements of the director to 1 46 administer the state sales and use tax law are 1 47 applicable to the administration of the monitor 1 48 vending machine excise tax, including but not limited 1 49 to the provisions of section 422.25, subsection 4, 1 50 sections 422.30, 422.67, and 422.68, section 422.69, 2 1 subsection 1, sections 422.70 to 422.75, section 2 2 423.14, subsection 1 and subsection 2, paragraphs "b" 2 3 through "e", and sections 423.15, 423.23, 423.24, 2 4 423.25, 423.31 to 423.35, 423.37 to 423.42, 423.46, 2 5 and 423.47. 2 6 c. Frequency of deposits and quarterly reports of 2 7 the monitor vending machine excise tax with the 2 8 department of revenue are governed by the tax 2 9 provisions in section 423.31. Monitor vending machine 2 10 excise tax collections shall not be included in 2 11 computation of the total tax to determine frequency of 2 12 filing under section 423.31. 2 13 3. For purposes of this section, "net monitor 2 14 vending machine revenue receipts" means the gross 2 15 receipts received from monitor vending machines less 2 16 prizes awarded. 2 17 Sec. 4. TRANSITION PROVISIONS == MONITOR VENDING 2 18 MACHINES. 2 19 1. Notwithstanding any provision of section 99G.3, 2 20 as amended by this Act, to the contrary, a retailer 2 21 that has acquired a monitor vending machine prior to 2 22 the effective date of this Act shall be allowed to 2 23 offer the machine to the public for only thirty days 2 24 following the effective date of this Act. On or after 2 25 thirty days following the effective date of this Act, 2 26 a retailer shall not make a monitor vending machine 2 27 available to the public except as provided in 2 28 subsection 2. 2 29 2. However, a retailer that has acquired a monitor 2 30 vending machine prior to the effective date of this 2 31 Act may continue to offer the machine to the public 2 32 until September 1, 2006, if prior to thirty days 2 33 following the effective date of this Act a waiver has 2 34 been filed by the retailer with the Iowa lottery. The 2 35 waiver shall be signed by the retailer, and the 2 36 manufacturer and distributor of the machine to be 2 37 offered to the public pursuant to this subsection by 2 38 the retailer, and provide that all parties agree to 2 39 waive any and all claims any party may have against 2 40 the Iowa lottery and the state arising out of the 2 41 operation of this Act. In addition, during the period 2 42 of time described in this subsection, an amount equal 2 43 to five percent of the gross revenues derived from 2 44 monitor vending machines and received by the state 2 45 shall not be deposited in the general fund of the 2 46 state but shall be distributed, pursuant to a formula 2 47 determined by the Iowa lottery, to owners of monitor 2 48 vending machines authorized to be offered to the 2 49 public pursuant to this subsection. 2 50 Sec. 5. EFFECTIVE DATE. This Act, being deemed of 3 1 immediate importance, takes effect upon enactment.> 3 2 #___. Title page, line 1, by inserting after the 3 3 word <providing> the following: <for an excise tax 3 4 and including>.> 3 5 #2. By renumbering as necessary. 3 6 3 7 3 8 3 9 WILLIAM A. DOTZLER 3 10 SF 2330.306 81 3 11 ec/cf/4041 -1-