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

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