House Amendment 8055


PAG LIN




     1  1    Amend Senate File 348, as passed by the Senate, as
     1  2 follows:
     1  3 #1.  Page 1, by inserting before line 1 the
     1  4 following:
     1  5    <Section 1.  Section 99D.11, subsection 6,
     1  6 paragraph b, Code 2007, is amended to read as follows:
     1  7    b.  (1)  The commission may authorize the licensee
     1  8 to simultaneously telecast within the racetrack
     1  9 enclosure, for the purpose of pari=mutuel wagering, a
     1 10 horse or dog race licensed by the racing authority of
     1 11 another state.  It is the responsibility of each
     1 12 licensee to obtain the consent of appropriate racing
     1 13 officials in other states as required by the federal
     1 14 Interstate Horseracing Act of 1978, 15 U.S.C. }
     1 15 3001=3007, to televise races for the purpose of
     1 16 conducting pari=mutuel wagering.
     1 17    (2)  A licensee may also obtain the permission of a
     1 18 person licensed by the commission to conduct horse or
     1 19 dog races in this state to televise races conducted by
     1 20 that person for the purpose of conducting pari=mutuel
     1 21 racing.  However, arrangements made by a licensee to
     1 22 televise any race for the purpose of conducting
     1 23 pari=mutuel wagering are subject to the approval of
     1 24 the commission, and the commission shall select the
     1 25 races to be televised.  The races selected by the
     1 26 commission shall be the same for all licensees
     1 27 approved by the commission to televise races for the
     1 28 purpose of conducting pari=mutuel wagering.  The
     1 29 commission shall not authorize the simultaneous
     1 30 telecast or televising of and a licensee shall not
     1 31 simultaneously telecast or televise any horse or dog
     1 32 race for the purpose of conducting pari=mutuel
     1 33 wagering unless the simultaneous telecast or
     1 34 televising is done at the racetrack of a licensee that
     1 35 schedules no less than sixty performances of nine live
     1 36 races each day of the season or is done for an entity
     1 37 licensed in another state to conduct pari=mutuel
     1 38 wagering that accepts wagers only within states in
     1 39 which it is licensed or authorized to accept wagers.
     1 40    (3)  For purposes of the taxes imposed under this
     1 41 chapter, races televised by a licensee for purposes of
     1 42 pari=mutuel wagering shall be treated as if the races
     1 43 were held at the racetrack of the licensee.
     1 44 Notwithstanding any contrary provision in this
     1 45 chapter, the commission may allow a licensee to adopt
     1 46 the same deductions as those of the pari=mutuel
     1 47 racetrack from which the races are being
     1 48 simultaneously telecast.
     1 49    Sec.    .  Section 99F.4, Code Supplement 2007, is
     1 50 amended by adding the following new subsections:
     2  1    NEW SUBSECTION.  26.  To conduct or commission a
     2  2 study on the economic impact of the horse racing
     2  3 industry in Iowa every four years beginning in
     2  4 calendar year 2009 and issue a report on that study.
     2  5 The study shall also examine the costs and expenses
     2  6 incurred by licensees in conducting horse racing.  The
     2  7 commission shall ensure that the results of each study
     2  8 are readily accessible to the public and a copy of the
     2  9 report on the study shall be submitted to the general
     2 10 assembly by January 1 following the year in which the
     2 11 study is conducted.  The licensee of a pari=mutuel
     2 12 horse racetrack enclosure authorized to conduct
     2 13 gambling games under this chapter and representatives
     2 14 of horse breeds subject to an agreement with the
     2 15 licensee as provided in section 99F.6 shall provide
     2 16 the commission such information as the commission
     2 17 requests.  Failure of the licensee to provide the
     2 18 information requested if it is within the licensee's
     2 19 control or possession shall subject the licensee to
     2 20 penalty which may include but is not limited to fines
     2 21 and the denial of an application to renew its license.
     2 22 Failure of the representative of a horse breed to
     2 23 provide the information requested if it is within the
     2 24 representative's control or possession shall subject
     2 25 that representative to penalty which may include but
     2 26 is not limited to fines and the forfeiture of racing
     2 27 performances and purses for that horse breed.
     2 28    NEW SUBSECTION.  27.  To conduct or commission a
     2 29 study on the economic impact of the dog racing
     2 30 industry in Iowa every four years beginning in
     2 31 calendar year 2011 and issue a report on that study.
     2 32 The study shall also examine the costs and expenses
     2 33 incurred by licensees in conducting dog racing.  The
     2 34 commission shall ensure that the results of each study
     2 35 are readily accessible to the public and a copy of the
     2 36 report on the study shall be submitted to the general
     2 37 assembly by January 1 following the year in which the
     2 38 study is conducted.  The licensee of a pari=mutuel dog
     2 39 racetrack enclosure authorized to conduct gambling
     2 40 games under this chapter and representatives of dogs
     2 41 subject to an agreement with the licensee as provided
     2 42 in section 99F.6 shall provide the commission such
     2 43 information as the commission requests.  Failure of
     2 44 the licensee to provide the information requested if
     2 45 it is within the licensee's control or possession
     2 46 shall subject the licensee to penalty which may
     2 47 include but is not limited to fines and the denial of
     2 48 an application to renew its license.  Failure of the
     2 49 representative of dogs to provide the information
     2 50 requested if it is within the representative's control
     3  1 or possession shall subject that representative to
     3  2 penalty which may include but is not limited to fines
     3  3 and the forfeiture of racing performances and purses.
     3  4    Sec.    .  Section 99F.6, subsection 4, paragraph
     3  5 a, Code Supplement 2007, is amended to read as
     3  6 follows:
     3  7    a.  Before a license is granted, the division of
     3  8 criminal investigation of the department of public
     3  9 safety shall conduct a thorough background
     3 10 investigation of the applicant for a license to
     3 11 operate a gambling game operation on an excursion
     3 12 gambling boat.  The applicant shall provide
     3 13 information on a form as required by the division of
     3 14 criminal investigation.  A qualified sponsoring
     3 15 organization licensed to operate gambling games under
     3 16 this chapter shall distribute the receipts of all
     3 17 gambling games, less reasonable expenses, charges,
     3 18 taxes, fees, and deductions allowed under this
     3 19 chapter, as winnings to players or participants or
     3 20 shall distribute the receipts for educational, civic,
     3 21 public, charitable, patriotic, or religious uses as
     3 22 defined in section 99B.7, subsection 3, paragraph "b".
     3 23 However, a licensee to conduct gambling games under
     3 24 this chapter shall, unless an operating agreement for
     3 25 an excursion gambling boat otherwise provides,
     3 26 distribute at least three percent of the adjusted
     3 27 gross receipts for each license year for educational,
     3 28 civic, public, charitable, patriotic, or religious
     3 29 uses as defined in section 99B.7, subsection 3,
     3 30 paragraph "b".  However, if a licensee who is also
     3 31 licensed to conduct pari=mutuel wagering at a horse
     3 32 racetrack has unpaid debt from the pari=mutuel
     3 33 racetrack operations, the first receipts of the
     3 34 gambling games operated within the racetrack enclosure
     3 35 less reasonable operating expenses, taxes, and fees
     3 36 allowed under this chapter shall be first used to pay
     3 37 the annual indebtedness.  The commission shall
     3 38 authorize, subject to the debt payments for horse
     3 39 racetracks and the provisions of paragraph "b" for dog
     3 40 racetracks, and the debt payment provisions of this
     3 41 paragraph and the provisions of paragraph "c" for
     3 42 horse racetracks, a licensee who is also licensed to
     3 43 conduct pari=mutuel dog or horse racing to use
     3 44 receipts from gambling games within the racetrack
     3 45 enclosure to supplement purses for races particularly
     3 46 for Iowa=bred horses pursuant to an agreement which
     3 47 shall be negotiated between the licensee and
     3 48 representatives of the dog or horse owners.  For
     3 49 agreements subject to commission approval concerning
     3 50 purses for horse racing beginning on or after January
     4  1 1, 2006, and ending before January 1, 2021, the
     4  2 agreements shall provide that total annual purses for
     4  3 all horse racing shall be no less than eleven percent
     4  4 of the first two hundred million dollars of net
     4  5 receipts, and six percent of net receipts above two
     4  6 hundred million dollars.  Agreements that are subject
     4  7 to commission approval concerning horse purses for a
     4  8 particular period of time beginning on or after
     4  9 January 1, 2006, and ending before January 1, 2021,
     4 10 shall be jointly submitted to the commission for
     4 11 approval.  A qualified sponsoring organization shall
     4 12 not make a contribution to a candidate, political
     4 13 committee, candidate's committee, state statutory
     4 14 political committee, county statutory political
     4 15 committee, national political party, or fund=raising
     4 16 event as these terms are defined in section 68A.102.
     4 17 The membership of the board of directors of a
     4 18 qualified sponsoring organization shall represent a
     4 19 broad interest of the communities.  For purposes of
     4 20 this paragraph, "net receipts" means the annual
     4 21 adjusted gross receipts from all gambling games less
     4 22 the annual amount of money pledged by the owner of the
     4 23 facility to fund a project approved to receive vision
     4 24 Iowa funds as of July 1, 2004.
     4 25    Sec.    .  Section 99F.6, subsection 4, Code
     4 26 Supplement 2007, is amended by adding the following
     4 27 new paragraph:
     4 28    NEW PARAGRAPH.  c.  (1)  The commission shall
     4 29 authorize the licensee of a pari=mutuel horse
     4 30 racetrack located in Polk county to conduct gambling
     4 31 games as provided in section 99F.4A if the licensee
     4 32 schedules, during a calendar year, seven hundred
     4 33 eleven live racing performances for thoroughbred
     4 34 horses and one hundred eighty live racing performances
     4 35 for quarter horses.  Live racing performances do not
     4 36 include quarter horse trials for stake races.  The
     4 37 number of performances required by this subparagraph
     4 38 for a particular horse breed may be modified by
     4 39 written agreement between the pari=mutuel horse
     4 40 racetrack and representatives of the affected horse
     4 41 breed.  However, the number of live races shall be
     4 42 subject to availability of horses and competitive
     4 43 field sizes and a live race shall not be conducted if
     4 44 there are fewer than five betting interests for that
     4 45 race at the time entries are closed.
     4 46    (2)  For agreements subject to commission approval
     4 47 concerning purses for horse racing beginning on or
     4 48 after January 1, 2006, the agreements shall provide
     4 49 that total annual purses for all horse racing shall be
     4 50 eleven percent of net receipts.  Agreements that are
     5  1 subject to commission approval concerning horse purses
     5  2 for a particular period of time beginning on or after
     5  3 January 1, 2006, shall be jointly submitted to the
     5  4 commission for approval.  For purposes of this
     5  5 subparagraph, "net receipts" means the annual adjusted
     5  6 gross receipts from all gambling games less the annual
     5  7 amount of money pledged by the owner of the facility
     5  8 to fund a project approved to receive vision Iowa
     5  9 funds as of July 1, 2004.
     5 10    (3)  (a)  For agreements concerning horse racing
     5 11 between the licensee operating the horse racetrack in
     5 12 Polk county and representatives of standardbred horse
     5 13 owners beginning on or after January 1, 2008, and
     5 14 ending before January 1, 2011, the agreements shall
     5 15 include a supplemental amount for standardbred horse
     5 16 races held at county fair racetracks in the state in
     5 17 the amount of one million dollars.  The supplemental
     5 18 amount shall be distributed to a nonprofit entity
     5 19 established by the representatives of standardbred
     5 20 horse owners.
     5 21    (b)  Beginning January 1, 2011, the licensee
     5 22 operating the horse racetrack in Polk county shall not
     5 23 be required to include a supplemental amount for
     5 24 standardbred horse races held at county fair
     5 25 racetracks in the state.  Instead, money shall be
     5 26 allocated for this purpose from money received for
     5 27 standardbred horse races pursuant to section 99F.11,
     5 28 subsection 3, paragraph "ee", subparagraph (1).
     5 29    (c)  The supplemental amount provided in this
     5 30 subparagraph (3) shall not be included in determining
     5 31 the total annual purses for all horse racing that is
     5 32 required to be paid as provided by this paragraph "c".
     5 33    Sec.    .  Section 99F.11, subsection 3, Code
     5 34 Supplement 2007, is amended by adding the following
     5 35 new paragraph:
     5 36    NEW PARAGRAPH.  ee.  Two=tenths of one percent of
     5 37 the adjusted gross receipts shall be allocated each
     5 38 fiscal year as follows:
     5 39    (1)  One million dollars shall be appropriated to a
     5 40 nonprofit entity established by the representatives of
     5 41 standardbred horse owners for purposes of standardbred
     5 42 horse races held at county fair racetracks.
     5 43    (2)  The moneys remaining after the appropriation
     5 44 in subparagraph (1) is appropriated to the treasurer
     5 45 of state for allocation as state aid to eligible fairs
     5 46 as provided in chapter 174.>
     5 47 #2.  Page 1, line 1, by inserting after the word
     5 48 <Code> the following:  <Supplement>.
     5 49 #3.  Page 1, lines 3 and 4, by striking the words
     5 50 <on an excursion gambling boat or at a racetrack
     6  1 enclosure> and inserting the following:  <on an
     6  2 excursion gambling boat>.
     6  3 #4.  Page 1, lines 12 and 13, by striking the words
     6  4 <on an excursion gambling boat or at a racetrack
     6  5 enclosure> and inserting the following:  <on an
     6  6 excursion gambling boat>.
     6  7 #5.  Page 1, lines 27 and 28, by striking the words
     6  8 <on an excursion gambling boat are or at a racetrack
     6  9 enclosure> and inserting the following:  <an excursion
     6 10 gambling boat are>.
     6 11 #6.  Page 1, lines 32 and 33, by striking the words
     6 12 <on an excursion gambling boats boat or at a racetrack
     6 13 enclosure> and inserting the following:  <on excursion
     6 14 gambling boats>.
     6 15 #7.  Page 3, line 8, by inserting after the word
     6 16 <approved> the following:  <or defeated>.
     6 17 #8.  Page 3, line 9, by inserting after the words
     6 18 <favor of> and inserting the following:  <or against>.
     6 19 #9.  Page 3, by striking lines 14 through 17 and
     6 20 inserting the following:
     6 21    <Sec.    .  EFFECTIVE DATES == RETROACTIVE
     6 22 APPLICABILITY.
     6 23    1.  The sections of this Act amending section
     6 24 99F.6, subsection 4, being deemed of immediate
     6 25 importance, take effect upon enactment and are
     6 26 retroactively applicable to January 1, 2008, and are
     6 27 applicable on and after that date.
     6 28    2.  The section of this Act amending section 99F.7,
     6 29 subsection 11, being deemed of immediate importance,
     6 30 takes effect upon enactment and is retroactively
     6 31 applicable to elections occurring on and after January
     6 32 1, 1994.>
     6 33 #10.  Title page, by striking lines 1 and 2 and
     6 34 inserting the following:  <An Act concerning gambling
     6 35 and horse racing, by providing for pari=mutuel
     6 36 wagering, minimum racing days and horse racing
     6 37 agreements among representatives of horse breeds,
     6 38 allocation of wagering tax receipts for county fairs
     6 39 and horse races, and county gambling elections,
     6 40 including effective date and retroactive applicability
     6 41 provisions.>
     6 42 #11.  By renumbering as necessary.
     6 43
     6 44
     6 45                               
     6 46 COMMITTEE ON STATE GOVERNMENT
     6 47 MASCHER of Johnson, Chairperson
     6 48 SF 348.711 82
     6 49 ec/nh/11107

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