House File 2469 H-8320 Amend House File 2469 as follows: 1 1. By striking everything after the enacting clause 2 and inserting: 3 < Section 1. Section 99D.2, subsection 9, Code 2014, 4 is amended to read as follows: 5 9. “Racetrack enclosure” means all real property 6 utilized for the conduct of a race meeting, including 7 the racetrack, grandstand, concession stands, offices, 8 barns, kennels and barn areas, employee housing 9 facilities, parking lots, and any additional areas 10 designated by the commission. “Racetrack enclosure” 11 also means all real property utilized by a licensee 12 under this chapter who is not required to conduct 13 live racing pursuant to the requirements of section 14 99D.9A, on which pari-mutuel wagering on simultaneously 15 telecast horse or dog races may be conducted and lawful 16 gambling is authorized and licensed as provided in this 17 chapter and chapter 99F. 18 Sec. 2. NEW SECTION . 99D.9A Dog racetrack 19 licensure —— discontinuance of live racing requirement 20 —— fees. 21 1. Upon written notification to the commission by 22 September 1, 2014, and agreement to comply with the 23 requirements of this section, a licensee authorized to 24 conduct pari-mutuel wagering at a dog racetrack and to 25 conduct gambling games pursuant to section 99F.6 as of 26 January 1, 2014, may, as of the live racing cessation 27 date, continue to maintain a license as provided 28 in this section for purposes of conducting gambling 29 games and pari-mutuel wagering on simultaneously 30 telecast horse or dog races without the requirement 31 of scheduling performances of live races at the dog 32 racetrack. For purposes of this section, the “live 33 racing cessation date” is October 31, 2014, for the 34 licensee of the pari-mutuel dog racetrack located 35 in Dubuque county, and December 31, 2015, for the 36 licensee of the pari-mutuel dog racetrack located in 37 Pottawattamie county. 38 2. Upon the live racing cessation date of a 39 licensee, all of the following shall occur: 40 a. The commission shall determine what portion 41 of the unexpended moneys in the dog racing promotion 42 fund created in section 99D.12 is attributable to the 43 licensee as of the live racing cessation date of the 44 licensee and shall transfer those moneys to the Iowa 45 greyhound pari-mutuel racing fund created in section 46 99D.9B. 47 b. Any agreement which was approved by the 48 commission for dog purse supplement payments for live 49 racing by the licensee shall be terminated. 50 -1- HF2469.4290 (1) 85 (amending this HF 2469 to CONFORM to SF 2362) ec/nh 1/ 14 #1.

c. Within thirty days after the live racing 1 cessation date of the licensee of the pari-mutuel dog 2 racetrack located in Pottawattamie county, the kennel 3 owners and operators and greyhound owners shall, at 4 their expense, remove all of their property including 5 the greyhounds from the racetrack. 6 3. a. To maintain a license under this chapter 7 to conduct gambling games and pari-mutuel wagering on 8 simultaneously telecast horse or dog races without the 9 requirement of scheduling performances of live dog 10 races, or to maintain a license under section 99F.4A, 11 subsection 9, the licensee as of the date a payment 12 under this subsection is due shall ensure payment 13 of the live racing cessation fee to the commission 14 for deposit in the Iowa greyhound pari-mutuel racing 15 fund created in section 99D.9B, as required by this 16 subsection. 17 b. Except as provided in paragraph “c” , the live 18 racing cessation fee shall be paid and determined as 19 follows: 20 (1) For the licensee authorized to conduct gambling 21 games in Dubuque county pursuant to a license issued 22 pursuant to section 99F.4A, subsection 9, the payment 23 of one million dollars by January 1, 2015, and one 24 million dollars each succeeding January 1 for six 25 consecutive calendar years. 26 (2) For the pari-mutuel dog racetrack located in 27 Pottawattamie county, the payment of nine million two 28 hundred eighty-five thousand eight hundred dollars 29 by January 1, 2016, and nine million two hundred 30 eighty-five thousand seven hundred dollars each 31 succeeding January 1 for six consecutive calendar 32 years. Payments required under this subparagraph shall 33 be made by the manager of the pari-mutuel racetrack 34 located in Pottawattamie county for deposit in the Iowa 35 greyhound pari-mutuel racing fund created in section 36 99D.9B, as required by this subsection. 37 c. (1) If the licensee at the pari-mutuel 38 racetrack located in Pottawattamie county as of 39 January 1, 2014, fails to have the licensee’s license 40 renewed, the licensee’s obligation and any obligation 41 of the manager of the racetrack to make any further 42 payments as provided in this subsection shall cease. 43 However, the commission shall not issue a license to 44 a subsequent or successor licensee at the pari-mutuel 45 racetrack located in Pottawattamie county until all 46 remaining unpaid installments of the live racing 47 cessation fee required under this subsection are paid. 48 (2) If the licensee issued a license under section 49 99F.4A, subsection 9, fails to have the license 50 -2- HF2469.4290 (1) 85 (amending this HF 2469 to CONFORM to SF 2362) ec/nh 2/ 14

renewed, the licensee’s obligation to make any further 1 payments as provided in this subsection shall cease. 2 However, the commission shall not issue a license 3 to a subsequent or successor licensee under section 4 99F.4A, subsection 9, until all remaining installments 5 of the live racing cessation fee required under this 6 subsection are paid. 7 (3) If the manager of the pari-mutuel racetrack 8 located in Pottawattamie county as of January 1, 9 2014, pursuant to a management contract with the 10 licensee, ceases to be the manager of the racetrack, 11 the licensee’s obligation and any obligation of the 12 manager of the racetrack to make any further payments 13 as provided in this subsection shall cease. However, 14 the commission shall not approve a management contract 15 with the licensee for a subsequent or successor manager 16 until all remaining installments of the live racing 17 cessation fee required under this subsection are paid. 18 4. Upon written notification to the commission by 19 the licensee of the pari-mutuel dog racetrack located 20 in Dubuque county as provided in subsection 1, all of 21 the following shall occur: 22 a. The licensee shall be authorized to maintain a 23 license issued to the licensee by the commission to 24 conduct gambling games pursuant to the requirements of 25 section 99F.4A, subsection 9. 26 b. The licensee shall maintain a license under this 27 chapter until December 31, 2014. The licensee shall, 28 until the live racing cessation date of the licensee, 29 conduct pari-mutuel wagering on live dog races and 30 shall, until December 31, 2014, be authorized to 31 simultaneously telecast horse or dog races as provided 32 by an agreement to conduct live racing during the 2014 33 calendar year. 34 5. a. The licensee of the pari-mutuel dog 35 racetrack located in Pottawattamie county who is 36 not required to conduct live racing pursuant to the 37 requirements of this section shall do all of the 38 following: 39 (1) Remain licensed under this chapter and pursuant 40 to section 99F.4A as a pari-mutuel dog racetrack 41 licensed to conduct gambling games and pari-mutuel 42 wagering on simultaneously telecast horse or dog races. 43 (2) Continue to pay the annual license fee and 44 regulatory fee as a pari-mutuel dog racetrack licensed 45 to conduct gambling games pursuant to the requirements 46 of section 99F.4A. 47 (3) Comply with all other applicable requirements 48 of this chapter and chapter 99F except for those 49 requirements concerning live dog racing. 50 -3- HF2469.4290 (1) 85 (amending this HF 2469 to CONFORM to SF 2362) ec/nh 3/ 14

b. However, nothing in this chapter shall require 1 the licensee of the pari-mutuel dog racetrack in 2 Pottawattamie county to conduct pari-mutuel wagering 3 on simultaneously telecast horse or dog races to 4 remain licensed under this chapter or to conduct 5 gambling games without the requirement of scheduling 6 performances of live dog races. 7 6. a. Compliance with the requirements of this 8 section and the establishment of the Iowa greyhound 9 pari-mutuel racing fund in section 99D.9B shall 10 constitute a full satisfaction of and discharge from 11 any and all liability or potential liability of a 12 licensee authorized to conduct gambling games in 13 Dubuque county pursuant to section 99F.4A, subsection 14 9, the licensee of the pari-mutuel dog racetrack 15 located in Pottawattamie county, and the Iowa greyhound 16 association which may arise out of either of the 17 following: 18 (1) The discontinuance of live dog racing or 19 simulcasting. 20 (2) Distributions made or not made from the 21 Iowa greyhound pari-mutuel racing fund created in 22 section 99D.9B or the purse escrow fund created in 23 the arbitration decision issued in December 1995 with 24 regard to the purse supplements to be paid at the 25 pari-mutuel dog racetrack in Pottawattamie county. 26 b. Compliance with the requirements of this section 27 and establishment of the Iowa greyhound pari-mutuel 28 racing fund in section 99D.9B shall immunize a licensee 29 authorized to conduct gambling games in Dubuque county 30 pursuant to a license issued pursuant to section 31 99F.4A, subsection 9, the licensee of the pari-mutuel 32 dog racetrack located in Pottawattamie county, and 33 the Iowa greyhound association and their respective 34 officers, directors, employees, board members, and 35 agents against claims of liability as described in 36 paragraph “a” made by any person or entity. 37 Sec. 3. NEW SECTION . 99D.9B Iowa greyhound 38 pari-mutuel racing fund. 39 1. An Iowa greyhound pari-mutuel racing fund is 40 created in the state treasury under the control of the 41 racing and gaming commission. 42 2. The fund shall consist of all of the following: 43 a. Moneys in the dog racing promotion fund created 44 in section 99D.12 that were deposited in the fund from 45 a dog racetrack licensee that is no longer required to 46 conduct live dog races pursuant to section 99D.9A. 47 b. Moneys deposited in the fund from the live 48 racing cessation fee established in section 99D.9A. 49 3. a. Fifty percent of the moneys deposited 50 -4- HF2469.4290 (1) 85 (amending this HF 2469 to CONFORM to SF 2362) ec/nh 4/ 14

in the fund shall first be distributed to the Iowa 1 greyhound association for deposit in the escrow account 2 established by the Iowa greyhound association pursuant 3 to the requirements of section 99D.9C, provided the 4 Iowa greyhound association is licensed under this 5 chapter to conduct pari-mutuel wagering on live dog 6 races or simultaneously telecast horse or dog races 7 pursuant to the requirements of section 99D.9C, by 8 December 15, 2014. 9 b. Moneys remaining in the fund following 10 distribution to the Iowa greyhound association as 11 provided in this subsection shall be under the sole 12 control of the commission. The commission shall 13 determine the method by which moneys remaining in the 14 fund will be distributed provided, however, that the 15 commission shall distribute a portion of the moneys 16 in the fund to no-kill animal adoption agencies to 17 facilitate care for and adoption of greyhounds no 18 longer racing as a result of the discontinuance of 19 live racing. The commission may consider objective 20 evidence, including purse payments to greyhound 21 industry participants for the period beginning January 22 1, 2010, and ending December 31, 2014, in determining 23 the method of distribution. The commission may hire an 24 expert to assist in the task of making distributions 25 from the fund. The commission may distribute moneys 26 from the fund to greyhound industry participants and 27 to kennel owners and operators and greyhound owners 28 for costs incurred in removing property from the dog 29 racetrack located in Pottawattamie county as required 30 by section 99D.9A, subsection 2, paragraph “c” . 31 Prior to adoption of any formula for distribution, 32 the commission shall allow for input from greyhound 33 industry participants. The distribution decisions of 34 the commission shall be final. The commission may 35 use moneys in the fund to pay its direct and indirect 36 administrative expenses incurred in administering the 37 fund, including the hiring of experts to assist in 38 the commission’s distribution determination. Members 39 of the commission, employees of the commission, and 40 any experts hired by the commission pursuant to this 41 section shall be held harmless against any claim 42 of liability made by any person arising out of the 43 distribution of moneys from the fund by the commission. 44 4. Section 8.33 does not apply to moneys in the 45 fund. Notwithstanding section 12C.7, subsection 2, 46 interest or earnings on moneys deposited in the fund 47 shall be credited to the fund. 48 5. The commission shall adopt rules to administer 49 this section. 50 -5- HF2469.4290 (1) 85 (amending this HF 2469 to CONFORM to SF 2362) ec/nh 5/ 14

Sec. 4. NEW SECTION . 99D.9C Alternative dog 1 racetrack and simulcasting licensure —— live racing —— 2 lease agreement with gambling games licensee. 3 1. a. The Iowa greyhound association may submit 4 an application to the commission for a license under 5 this chapter to conduct pari-mutuel wagering on live 6 dog races or simultaneously telecast horse or dog 7 races, subject to the requirements of this section. 8 Unless inconsistent with the requirements of this 9 section, the Iowa greyhound association shall comply 10 with all requirements for submitting an application 11 for a license under this chapter. If an application 12 is submitted by October 1, 2014, the commission shall, 13 subject to the requirements of section 99D.9 and this 14 section, determine whether to approve the application 15 for a license by December 1, 2014. 16 b. If the commission approves an application for 17 a license submitted by the Iowa greyhound association 18 pursuant to section 99D.9 and this section, the terms 19 and conditions of the license shall, notwithstanding 20 any provision of law to the contrary, authorize the 21 licensee to conduct pari-mutuel wagering on live 22 dog races or simultaneously telecast horse or dog 23 races conducted at a racetrack enclosure located in 24 Dubuque county subject to the requirements of a lease 25 agreement entered into pursuant to the requirements 26 of this section. The terms and conditions of the 27 license shall also authorize the licensee to conduct 28 pari-mutuel wagering on simultaneously telecast horse 29 or dog races at the facility of a licensee authorized 30 to conduct gambling games under chapter 99F pursuant 31 to an agreement with the licensee of that facility 32 as authorized by this section. A licensee issued a 33 license pursuant to this section shall comply with all 34 requirements of this chapter applicable to licensees 35 unless otherwise inconsistent with the provisions of 36 this section. 37 2. a. The Iowa greyhound association shall 38 establish an escrow fund under its control for the 39 receipt and deposit of moneys transferred to the Iowa 40 greyhound association pursuant to section 99D.9B. The 41 Iowa greyhound association shall use moneys in the 42 escrow fund to pay all reasonable and necessary costs 43 and fees associated with conducting live racing and 44 pari-mutuel wagering on simultaneously telecast horse 45 or dog races, including but not limited to regulatory 46 and administrative fees, capital improvements, purse 47 supplements, operational costs, obligations pursuant 48 to any purse supplement agreement as amended and 49 approved by the commission, payment of rents for 50 -6- HF2469.4290 (1) 85 (amending this HF 2469 to CONFORM to SF 2362) ec/nh 6/ 14

leased facilities and costs of maintenance of leased 1 facilities, payment for products and services provided 2 by the licensee authorized to conduct gambling games in 3 Dubuque county pursuant to section 99F.4A, subsection 4 9, costs to maintain the license, costs for posting a 5 bond as required by section 99D.10, and administrative 6 costs and fees incurred in connection with the pursuit 7 of the continuation of live greyhound racing. 8 b. However, if the Iowa greyhound association is 9 not licensed to conduct pari-mutuel wagering on live 10 dog races or simultaneously telecast horse or dog 11 races subject to the requirements of this section or 12 fails to conduct live dog racing during any calendar 13 year beginning on or after January 1, 2015, the Iowa 14 greyhound association shall transfer any unused moneys 15 in the escrow fund to the commission for deposit in 16 the Iowa greyhound pari-mutuel racing fund created 17 in section 99D.9B and shall receive no further 18 distributions from the fund created in section 99D.9B. 19 The commission shall require that an annual audit be 20 conducted and submitted to the commission, in a manner 21 determined by the commission, concerning the operation 22 of the escrow fund. 23 3. a. A license issued pursuant to this section 24 shall authorize the licensee to enter into an agreement 25 with any licensee authorized to operate an excursion 26 gambling boat or gambling structure under chapter 27 99F to conduct, without the requirement to conduct 28 live horse or dog races at the facility, pari-mutuel 29 wagering on simultaneously telecast horse or dog races 30 at the facility of the licensee authorized to operate 31 an excursion gambling boat or gambling structure under 32 chapter 99F. 33 b. If a lease agreement entered into with the city 34 of Dubuque pursuant to this section is terminated or 35 is not renewed or extended, the licensee authorized to 36 conduct gambling games in Dubuque county pursuant to a 37 license issued pursuant to section 99F.4A, subsection 38 9, shall be authorized to enter into an agreement with 39 a licensee issued a license pursuant to this section to 40 conduct pari-mutuel wagering on simultaneously telecast 41 horse or dog races at the facility of the licensee as 42 provided by this subsection. 43 c. If the Iowa greyhound association is licensed 44 as provided in this section and ceases to conduct live 45 dog racing, all revenue generated from an agreement 46 to simultaneously telecast horse or dog races as 47 authorized by this subsection shall be used solely for 48 the purpose of supplementing Iowa-whelped dogs racing 49 at out-of-state facilities. 50 -7- HF2469.4290 (1) 85 (amending this HF 2469 to CONFORM to SF 2362) ec/nh 7/ 14

4. a. Upon written request by the Iowa greyhound 1 association to the city of Dubuque by July 8, 2014, 2 the city of Dubuque shall be authorized to enter into 3 an initial five-year lease agreement with a single 4 option to renew the lease for an additional five years 5 with the Iowa greyhound association beginning January 6 1, 2015, to permit the Iowa greyhound association to 7 conduct pari-mutuel wagering on live dog races and 8 simultaneously telecast horse or dog races at the 9 dog racetrack located in Dubuque county. The lease 10 agreement shall be contingent upon the Iowa greyhound 11 association obtaining a license pursuant to the 12 requirements of this section. 13 b. The lease agreement shall provide for the 14 following: 15 (1) An annual lease payment of one dollar during 16 the initial five-year lease for the racetrack 17 enclosure, which includes the racetrack, kennels, 18 grandstand, and space for a new simulcast facility, and 19 one five-year renewal of the lease agreement at a fair 20 market rental rate. 21 (2) Employees at the racetrack enclosure involved 22 in pari-mutuel wagering as of the live racing cessation 23 date, as provided in section 99D.9A, shall be offered 24 employment by the Iowa greyhound association at the 25 racetrack. 26 (3) Existing collective bargaining agreements 27 concerning employees at the racetrack shall be honored. 28 (4) Live dog racing requirements. The requirements 29 shall provide that the Iowa greyhound association 30 conduct, for calendar year 2015, no fewer than 31 sixty live race days with nine live races per day 32 during the racing season, and for calendar year 2016 33 and subsequent calendar years covered by the lease 34 agreement, no fewer than ninety-five live race days 35 with nine live races per day during each racing season. 36 However, upon mutual agreement by the parties subject 37 to approval by the commission, the number of race days 38 for one or more live racing seasons may be reduced 39 so long as the Iowa greyhound association conducts a 40 minimum number of live races and racing days during 41 that season. 42 (5) Termination provisions, to include termination 43 of the agreement on January 1 of the year following the 44 calendar year in which live dog racing as required by 45 the agreement was not conducted by the Iowa greyhound 46 association. 47 (6) Terms concerning contracts entered into for 48 the conduct of pari-mutuel wagering at the racetrack 49 prior to the live racing cessation date, as provided in 50 -8- HF2469.4290 (1) 85 (amending this HF 2469 to CONFORM to SF 2362) ec/nh 8/ 14

section 99D.9A, at the racetrack. 1 (7) Any other related items concerning the conduct 2 of pari-mutuel wagering at the dog racetrack and the 3 operation of the dog racetrack facility. 4 c. (1) If the parties are unable to reach 5 agreement on any of the terms of the initial lease 6 agreement by October 1, 2014, or to reach agreement on 7 the fair market rental rate for purposes of the one 8 five-year lease renewal by June 30, 2018, if the Iowa 9 greyhound association requests arbitration concerning 10 the renewal by June 18, 2018, the disputed terms of the 11 lease shall be determined by binding arbitration in 12 accordance with the rules of the American arbitration 13 association as of the date for arbitration. A request 14 for arbitration shall be in writing and a copy of the 15 request shall be delivered to the other party. The 16 parties shall each select one arbitrator and the two 17 arbitrators shall choose a third arbitrator to complete 18 the three-person arbitration panel. Each party shall 19 deliver its final offer on each of the disputed items 20 to the other party within fourteen days after the 21 request for arbitration. After consultation with the 22 parties, the arbitrators shall set a time and place for 23 an arbitration hearing. The parties may continue to 24 negotiate all offers until an agreement is reached or a 25 decision is rendered by the arbitrators. For purposes 26 of determining the fair market rental rate for purposes 27 of the one five-year lease renewal, either party may 28 argue, and present arguments and evidence, that the 29 renewal lease rental rate should be based upon the 30 market value of similarly situated undeveloped land, or 31 upon its use as a greyhound track. The submission of 32 the disputed items to the arbitrators shall be limited 33 to those items upon which the parties have not reached 34 agreement. However, the arbitrators shall have no 35 authority to extend the term of the lease agreement 36 beyond the initial five-year term or the one five-year 37 renewal. 38 (2) The arbitrators shall render a decision within 39 fifteen days after the hearing. The arbitrators shall 40 give written explanation for the decision and the 41 decision of the arbitrators shall be final and binding 42 on the parties, and any decision of the arbitrators may 43 be entered in any court having competent jurisdiction. 44 The decision by the arbitrators and the items agreed 45 upon by the parties shall be deemed to be the lease 46 agreement between the parties and such final lease 47 agreement shall not be subject to the approval of 48 the governing body of the city of Dubuque, the Iowa 49 greyhound association, the commission, or any other 50 -9- HF2469.4290 (1) 85 (amending this HF 2469 to CONFORM to SF 2362) ec/nh 9/ 14

government body. Each party to the arbitration shall 1 bear its own expenses, including attorney fees, and 2 the parties shall share equally the filing and other 3 administrative fees of the American arbitration 4 association and the expenses of the arbitrators. 5 Sec. 5. Section 99D.10, Code 2014, is amended to 6 read as follows: 7 99D.10 Bond of licensee. 8 A licensee licensed under section 99D.9 , including a 9 licensee issued a license subject to the requirements 10 of section 99D.9C, shall post a bond to the state of 11 Iowa before the license is issued in a sum as the 12 commission shall fix, with sureties to be approved by 13 the commission. The bond shall be used to guarantee 14 that the licensee faithfully makes the payments, keeps 15 its books and records and makes reports, and conducts 16 its racing in conformity with sections 99D.6 through 17 99D.23 and the rules adopted by the commission. The 18 bond shall not be canceled by a surety on less than 19 thirty days’ notice in writing to the commission. If 20 a bond is canceled and the licensee fails to file a 21 new bond with the commission in the required amount 22 on or before the effective date of cancellation, 23 the licensee’s license shall be revoked. The total 24 and aggregate liability of the surety on the bond is 25 limited to the amount specified in the bond. 26 Sec. 6. Section 99D.11, subsection 6, paragraph b, 27 Code 2014, is amended to read as follows: 28 b. (1) The commission may authorize the licensee 29 to simultaneously telecast within the racetrack 30 enclosure or at the facility of a licensee authorized 31 to operate an excursion gambling boat or gambling 32 structure under chapter 99F , for the purpose of 33 pari-mutuel wagering, a horse or dog race licensed 34 by the racing authority of another state. It is the 35 responsibility of each licensee to obtain the consent 36 of appropriate racing officials in other states as 37 required by the federal Interstate Horseracing Act of 38 1978, 15 U.S.C. § 3001 – 3007, to televise races for 39 the purpose of conducting pari-mutuel wagering. 40 (2) A licensee may also obtain the permission 41 of a person licensed by the commission to conduct 42 horse or dog races in this state to televise races 43 conducted by that person for the purpose of conducting 44 pari-mutuel racing wagering . However, arrangements 45 made by a licensee to televise any race for the purpose 46 of conducting pari-mutuel wagering are subject to 47 the approval of the commission, and the commission 48 shall select the races to be televised. The races 49 selected by the commission shall be the same for all 50 -10- HF2469.4290 (1) 85 (amending this HF 2469 to CONFORM to SF 2362) ec/nh 10/ 14

licensees approved by the commission to televise races 1 for the purpose of conducting pari-mutuel wagering. 2 The Except for a licensee that is not obligated to 3 schedule performances of live races pursuant to section 4 99D.9A, or a licensee issued a license subject to the 5 requirements of section 99D.9C, the commission shall 6 not authorize the simultaneous telecast or televising 7 of and a licensee shall not simultaneously telecast 8 or televise any horse or dog race for the purpose of 9 conducting pari-mutuel wagering unless the simultaneous 10 telecast or televising is done at the racetrack of a 11 licensee that schedules no less than sixty performances 12 of nine live races each day of the season. 13 (3) For purposes of the taxes imposed under this 14 chapter , races televised by a licensee for purposes 15 of pari-mutuel wagering shall be treated as if the 16 races were held at the racetrack of by the licensee. 17 Notwithstanding any contrary provision in this chapter , 18 the commission may allow a licensee to adopt the same 19 deductions as those of the pari-mutuel racetrack from 20 which the races are being simultaneously telecast. 21 Sec. 7. Section 99D.20, Code 2014, is amended to 22 read as follows: 23 99D.20 Audit of licensee operations. 24 Within ninety days after the end of each calendar 25 year, the licensee , including a licensee issued 26 a license subject to the requirements of section 27 99D.9C, shall transmit to the commission an audit 28 of the financial transactions and condition of the 29 licensee’s operations conducted under this chapter . 30 Additionally, within ninety days after the end of the 31 licensee’s fiscal year, the licensee shall transmit to 32 the commission an audit of the licensee’s total racing 33 and gaming operations, including an itemization of all 34 expenses and subsidies. All audits shall be conducted 35 by certified public accountants authorized to practice 36 in the state of Iowa under chapter 542 who are selected 37 by the board of supervisors of the county in which the 38 licensee operates. 39 Sec. 8. Section 99F.1, subsection 21, Code 2014, is 40 amended to read as follows: 41 21. “Racetrack enclosure” means all real property 42 utilized for the conduct of a race meeting, including 43 the racetrack, grandstand, concession stands, offices, 44 barns, kennels and barn areas, employee housing 45 facilities, parking lots, and any additional areas 46 designated by the commission. “Racetrack enclosure” 47 also means all real property utilized by a licensee 48 under chapter 99D who is not required to conduct 49 live racing pursuant to the requirements of section 50 -11- HF2469.4290 (1) 85 (amending this HF 2469 to CONFORM to SF 2362) ec/nh 11/ 14

99D.9A, on which pari-mutuel wagering on simultaneously 1 telecast horse or dog races may be conducted and lawful 2 gambling is authorized and licensed as provided in this 3 chapter. 4 Sec. 9. Section 99F.4A, subsections 1, 2, 3, and 5, 5 Code 2014, are amended to read as follows: 6 1. Upon application, the commission shall license 7 the licensee of a pari-mutuel dog or horse racetrack 8 to operate conduct gambling games at a pari-mutuel 9 racetrack enclosure subject to the provisions of this 10 chapter and rules adopted pursuant to this chapter 11 relating to gambling except as otherwise provided in 12 this section . 13 2. A license to operate conduct gambling games 14 shall be issued only to a licensee holding a valid 15 license to conduct pari-mutuel dog or horse racing 16 pursuant to chapter 99D on January 1, 1994. 17 3. A person holding a valid license pursuant to 18 chapter 99D to conduct pari-mutuel wagering at a dog or 19 horse racetrack is exempt from further investigation 20 and examination for licensing to operate a conduct 21 gambling game games pursuant to this chapter . However, 22 the commission may order future investigations or 23 examinations as the commission finds appropriate. 24 5. In lieu of the annual license fee specified in 25 section 99F.5 , the annual license fee for operating 26 conducting gambling games at a pari-mutuel racetrack 27 shall be one thousand dollars. 28 Sec. 10. Section 99F.4A, Code 2014, is amended by 29 adding the following new subsection: 30 NEW SUBSECTION . 9. a. Upon application, the 31 commission shall issue a license to the licensee of the 32 pari-mutuel dog racetrack located in Dubuque county as 33 of the effective date of this provision of this Act to 34 conduct gambling games at a gambling structure subject 35 to the provisions of this chapter and rules adopted 36 pursuant to this chapter relating to gambling. The 37 licensee shall not be required to pay any additional 38 fees or be assessed any additional costs for issuance 39 of the license pursuant to this subsection and shall 40 be exempt, for purposes of the initial issuance 41 of a license under this subsection, from further 42 investigation and examination for a license to conduct 43 gambling games pursuant to this chapter. 44 b. To maintain a license pursuant to this 45 subsection on or after July 1, 2014, the licensee 46 shall provide written notification to the commission 47 by September 1, 2014, as provided in section 99D.9A, 48 subsection 1, pay the live racing cessation fee as 49 provided in section 99D.9A, and otherwise comply with 50 -12- HF2469.4290 (1) 85 (amending this HF 2469 to CONFORM to SF 2362) ec/nh 12/ 14

the requirements of section 99D.9A applicable to the 1 licensee. In addition, the licensee shall pay the 2 annual license fee as specified in section 99F.5 and 3 regulatory fee as a licensee of a gambling structure 4 and shall otherwise be required to comply with all 5 requirements of this chapter applicable to a gambling 6 games licensee not otherwise inconsistent with the 7 requirements of this subsection. 8 Sec. 11. Section 99F.6, subsection 4, paragraph b, 9 Code 2014, is amended to read as follows: 10 b. (1) The commission shall authorize the 11 licensees licensee of the pari-mutuel dog racetracks 12 racetrack located in Dubuque county and Black Hawk 13 county to conduct gambling games as provided in section 14 99F.4A if the licensees schedule licensee schedules 15 at least one hundred thirty performances of twelve 16 live races each day during a season of twenty-five 17 weeks. For the pari-mutuel dog racetrack located in 18 Pottawattamie county, the commission shall authorize 19 the licensee to conduct gambling games as provided in 20 section 99F.4A if the licensee schedules at least two 21 hundred ninety performances of twelve live races each 22 day during a season of fifty weeks. The However, the 23 requirement to schedule performances of live races 24 for purposes of conducting gambling games under this 25 chapter shall not apply to a licensee as of the live 26 racing cessation date of the licensee as provided in 27 section 99D.9A. 28 (2) If a pari-mutuel dog racetrack authorized 29 to conduct gambling games as of January 1, 2014, is 30 required to schedule performances of live races for 31 purposes of conducting gambling games under this 32 chapter during any calendar year, the 33 commission shall approve an annual contract to be 34 negotiated between the annual recipient of the dog 35 racing promotion fund and each dog racetrack licensee 36 to specify the percentage or amount of gambling game 37 proceeds which shall be dedicated to supplement the 38 purses of live dog races. The parties shall agree 39 to a negotiation timetable to insure no interruption 40 of business activity. If the parties fail to agree, 41 the commission shall impose a timetable. If the 42 two parties cannot reach agreement, each party shall 43 select a representative and the two representatives 44 shall select a third person to assist in negotiating 45 an agreement. The two representatives may select the 46 commission or one of its members to serve as the third 47 party. Alternately, each party shall submit the name 48 of the proposed third person to the commission who 49 shall then select one of the two persons to serve as 50 -13- HF2469.4290 (1) 85 (amending this HF 2469 to CONFORM to SF 2362) ec/nh 13/ 14

the third party. All parties to the negotiations, 1 including the commission, shall consider that the dog 2 racetracks were built to facilitate the development and 3 promotion of Iowa greyhound racing dogs in this state 4 and shall negotiate and decide accordingly. 5 Sec. 12. TRANSITION PROVISIONS —— PURSE 6 SUPPLEMENTS. The annual contract under section 99F.6, 7 subsection 4, paragraph “b”, specifying the percentage 8 or amount of gambling game proceeds which shall be 9 dedicated to supplement the purses of live dog races 10 conducted during the calendar year beginning January 11 1, 2014, at the pari-mutuel dog racetrack located in 12 Pottawattamie county shall be extended to apply to live 13 dog races conducted at the dog racetrack located in 14 Pottawattamie county during the calendar year beginning 15 January 1, 2015. 16 Sec. 13. EFFECTIVE UPON ENACTMENT. The following 17 provision or provisions of this Act, being deemed of 18 immediate importance, take effect upon enactment: 19 1. The section of this Act enacting section 99F.4A, 20 subsection 9. > 21 2. Title page, by striking lines 1 through 3 and 22 inserting < An Act relating to pari-mutuel racetracks, 23 including by providing for live dog racing at 24 pari-mutuel dog racetracks, providing for alternative 25 licensure for dog racetracks, and establishing fees, 26 and including effective date provisions. > 27 3. By renumbering as necessary. 28 ______________________________ VANDER LINDEN of Mahaska -14- HF2469.4290 (1) 85 (amending this HF 2469 to CONFORM to SF 2362) ec/nh 14/ 14 #2. #3.