Senate File 2330 - Enrolled

PAG LIN

1	1	SENATE FILE 2330
1	2
1	3	AN ACT
1	4 PROHIBITING MONITOR VENDING MACHINES AND PROVIDING AN EXCISE
1	5	TAX AND AN EFFECTIVE DATE.
1	6
1	7 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1	8
1	9	Section 1.	Section 99G.3, subsection 7, Code 2005, is
1 10 amended to read as follows:
1 11	7.	"Lottery", "lotteries", "lottery game", "lottery games"
1 12 or "lottery products" means any game of chance approved by the
1 13 board and operated pursuant to this chapter and games using
1 14 mechanical or electronic devices, provided that the authority
1 15 shall not authorize a monitor vending machine or a player=
1 16 activated gaming machine that utilizes an internal randomizer
1 17 to determine winning and nonwinning plays and that upon random
1 18 internal selection of a winning play dispenses coins,
1 19 currency, or a ticket, credit, or token to the player that is
1 20 redeemable for cash or a prize, and excluding gambling or
1 21 gaming conducted pursuant to chapter 99B, 99D, or 99F.
1 22	Sec. 2.	Section 99G.3, Code 2005, is amended by adding the
1 23 following new subsection:
1 24	NEW SUBSECTION.	8A.	"Monitor vending machine" means a
1 25 machine or other similar electronic device that includes a
1 26 video monitor and audio capabilities that dispenses to a
1 27 purchaser lottery tickets that have been determined to be
1 28 winning or losing tickets by a predetermined pool drawing
1 29 machine prior to the dispensing of the tickets.
1 30	Sec. 3.	NEW SECTION.	99G.30A	MONITOR VENDING MACHINE ==
1 31 TAX IMPOSED.
1 32	1.	If revenues are generated from monitor vending machines
1 33 on or after forty=five days following the effective date of
1 34 this Act, then there shall be a monitor vending machine excise
35 tax imposed on net monitor vending machine revenue receipts at
1 the rate of sixty=five percent.
2	2	2.	a.	The director of revenue shall administer the
2	3 monitor vending machine excise tax as nearly as possible in
2	4 conjunction with the administration of state sales tax laws.
2	5 The director shall provide appropriate forms or provide
2	6 appropriate entries on the regular state tax forms for
2	7 reporting local sales and services tax liability.
2	8	b.	All powers and requirements of the director to
2	9 administer the state sales and use tax law are applicable to
2 10 the administration of the monitor vending machine excise tax,
2 11 including but not limited to the provisions of section 422.25,
2 12 subsection 4, sections 422.30, 422.67, and 422.68, section
2 13 422.69, subsection 1, sections 422.70 to 422.75, section
2 14 423.14, subsection 1 and subsection 2, paragraphs "b" through
2 15 "e", and sections 423.15, 423.23, 423.24, 423.25, 423.31 to
2 16 423.35, 423.37 to 423.42, 423.46, and 423.47.
2 17	c.	Frequency of deposits and quarterly reports of the
2 18 monitor vending machine excise tax with the department of
2 19 revenue are governed by the tax provisions in section 423.31.
2 20 Monitor vending machine excise tax collections shall not be
2 21 included in computation of the total tax to determine
2 22 frequency of filing under section 423.31.
2 23	3.	For purposes of this section, "net monitor vending
2 24 machine revenue receipts" means the gross receipts received
2 25 from monitor vending machines less prizes awarded.
2 26	Sec. 4.	TRANSITION PROVISIONS == MONITOR VENDING MACHINES.
2 27 Notwithstanding any provision of section 99G.3, as amended by
2 28 this Act, to the contrary, a retailer that has acquired a
2 29 monitor vending machine prior to the effective date of this
2 30 Act shall be allowed to offer the machine to the public for
2 31 only forty=five days following the effective date of this Act.
2 32 On or after forty=five days following the effective date of
2 33 this Act, a retailer shall not make a monitor vending machine
2 34 available to the public.
35	Sec. 5.	EFFECTIVE DATE.	This Act, being deemed of
1 immediate importance, takes effect upon enactment. 3	2
3	3

3	4
3	5	JOHN P. KIBBIE
3	6	President of the Senate
3	7
3	8
3	9
3 10	CHRISTOPHER C. RANTS
3 11	Speaker of the House
3 12
3 13	I hereby certify that this bill originated in the Senate and
3 14 is known as Senate File 2330, Eighty=first General Assembly. 3 15
3 16
3 17
3 18	MICHAEL E. MARSHALL
3 19	Secretary of the Senate
3 20 Approved	, 2006
3 21
3 22
3 23  	
3 24 THOMAS J. VILSACK
3 25 Governor