House File 2501

                                    HOUSE FILE       
                                    BY  COMMITTEE ON STATE GOVERNMENT

                                    (SUCCESSOR TO HF 2114)


    Passed House,  Date               Passed Senate, Date             
    Vote:  Ayes        Nays           Vote:  Ayes        Nays         
                 Approved                            

                                      A BILL FOR

  1 An Act relating to electrical and mechanical amusement devices
  2    that are required to be registered with the department of
  3    inspections and appeals, establishing fees, making an
  4    appropriation, making penalties applicable, and including an
  5    effective and retroactive applicability provision.
  6 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
  7 TLSB 5225HV 80
  8 ec/gg/14

PAG LIN

  1  1    Section 1.  Section 99B.6, subsection 1, paragraph k, Code
  1  2 Supplement 2003, is amended to read as follows:
  1  3    k.  A person under the age of twenty=one years shall not
  1  4 participate in the gambling, including the operation of an
  1  5 electrical and mechanical amusement device required to be
  1  6 registered as provided in section 99B.10, subsection 4, except
  1  7 pursuant to sections 99B.3, 99B.4, 99B.5, and 99B.7.  A person
  1  8 who violates this paragraph with respect to a person under the
  1  9 age of twenty=one operating an electrical and mechanical
  1 10 amusement device commits a scheduled violation under section
  1 11 805.8C, subsection 4.  Any licensee knowingly allowing a
  1 12 person under the age of twenty=one to participate in the
  1 13 gambling prohibited by this paragraph or any person knowingly
  1 14 participating in gambling with a person under the age of
  1 15 twenty=one is guilty of a simple misdemeanor.
  1 16    Sec. 2.  Section 99B.10, subsection 4, Code Supplement
  1 17 2003, is amended to read as follows:
  1 18    4.  Each electrical and mechanical amusement device in
  1 19 operation or distributed in this state that awards a prize, as
  1 20 provided in this section, where the outcome is not primarily
  1 21 determined by the skill or knowledge of the operator, is
  1 22 registered by the department as provided by this subsection.
  1 23 For an organization that meets the requirements of section
  1 24 99B.7, subsection 1, paragraph "m", no more than four, and for
  1 25 all other persons, but only at a location for which a class
  1 26 "A", class "B", class "C", or class "D" liquor control license
  1 27 or class "B" beer permit has been issued pursuant to chapter
  1 28 123, no more than two electrical and mechanical amusement
  1 29 devices registered as provided by this subsection shall be
  1 30 permitted or offered for use in any single location or
  1 31 premises.  Each person owning an electrical and mechanical
  1 32 amusement device in this state shall obtain a registration tag
  1 33 for each electrical and mechanical amusement device owned that
  1 34 is required to be registered as provided in this subsection.
  1 35 Upon receipt of an application and a fee of twenty=five
  2  1 dollars for each device required to be registered, the
  2  2 department shall issue an annual registration tag which tag
  2  3 shall be displayed as required by rules adopted by the
  2  4 department.  The application shall be submitted on forms
  2  5 designated by the department and contain the information
  2  6 required by rule of the department.  A registration may be
  2  7 renewed annually upon submission of a registration application
  2  8 and payment of the annual registration fee and compliance with
  2  9 this chapter and the rules adopted pursuant to this chapter.
  2 10 A person owning or leasing an electrical and mechanical
  2 11 amusement device required to be registered under this
  2 12 subsection shall only own or lease an electrical and
  2 13 mechanical amusement device that is required to be registered
  2 14 that has been purchased from a manufacturer, manufacturer's
  2 15 representative, or distributor registered with the department
  2 16 under section 99B.10A and shall not advertise or promote the
  2 17 availability of the device to the public as anything other
  2 18 than an electrical and mechanical amusement device pursuant to
  2 19 rules adopted by the department.
  2 20    Sec. 3.  Section 99B.10, Code Supplement 2003, is amended
  2 21 by adding the following new subsection:
  2 22    NEW SUBSECTION.  5A.  Each electrical or mechanical
  2 23 amusement device required to be registered as provided by this
  2 24 section shall, by January 1, 2006, include on the device a
  2 25 counting mechanism which establishes the volume of business of
  2 26 the device.  The department shall have access to the
  2 27 information provided by the counting mechanism.
  2 28    Sec. 4.  Section 99B.10A, Code Supplement 2003, is amended
  2 29 to read as follows:
  2 30    99B.10A  MANUFACTURERS AND DISTRIBUTORS OF ELECTRICAL AND
  2 31 MECHANICAL AMUSEMENT DEVICES == REGISTRATION.
  2 32    1.  A person engaged in business in this state as a
  2 33 manufacturer, manufacturer's representative, or distributor,
  2 34 or for=profit owner of electrical and mechanical amusement
  2 35 devices required to be registered as provided in section
  3  1 99B.10, subsection 4, shall register with the department.
  3  2 Each person who registers with the department under this
  3  3 section shall pay an annual registration fee of two thousand
  3  4 five hundred dollars in an amount as provided in subsection 2.
  3  5 Registration shall be submitted on forms designated by the
  3  6 department that shall contain the information required by the
  3  7 department by rule.  The department shall adopt rules
  3  8 providing for the submission of information to the department
  3  9 by a person registered pursuant to this section if information
  3 10 in the initial registration is changed, including
  3 11 discontinuing the business in this state.  For purposes of
  3 12 this section, a distributor means an organization or person
  3 13 that meets the requirements of section 99B.7, subsection 1,
  3 14 paragraph "m", that owns more than four, and all other persons
  3 15 that own more than two, electrical and mechanical amusement
  3 16 devices registered as provided in section 99B.10, subsection
  3 17 4.
  3 18    2.  For purposes of this section, the annual registration
  3 19 fee shall be as follows:
  3 20    a.  For a manufacturer or manufacturer's representative,
  3 21 two thousand five hundred dollars.
  3 22    b.  For a distributor, five thousand dollars.
  3 23    c.  For an owner of no more than two electrical and
  3 24 mechanical amusement devices registered as provided in section
  3 25 99B.10, subsection 4, that is not an organization that meets
  3 26 the requirements of section 99B.7, subsection 1, paragraph
  3 27 "m", two thousand five hundred dollars.
  3 28    Sec. 5.  Section 99B.10B, Code Supplement 2003, is amended
  3 29 to read as follows:
  3 30    99B.10B  REVOCATION OF REGISTRATION == ELECTRICAL AND
  3 31 MECHANICAL AMUSEMENT DEVICES.
  3 32    1.  The department may revoke a registration issued
  3 33 pursuant to section 99B.10 or 99B.10A, for a period not to
  3 34 exceed two years, for cause, following at least ten days'
  3 35 written notice and opportunity for an evidentiary hearing,
  4  1 pursuant to rules adopted by the department.  The rules shall
  4  2 provide that a registration may be revoked if the registrant
  4  3 or agent of the registrant violates, or permits a violation,
  4  4 of section 99B.10 or 99B.10A, violates any rule adopted by the
  4  5 department under this chapter that the department determines
  4  6 should warrant revocation of the registration, or engages in
  4  7 any act or omission that would have permitted the department
  4  8 to refuse to issue a registration under section 99B.10 or
  4  9 99B.10A.
  4 10    2.  The department shall revoke a registration issued
  4 11 pursuant to section 99B.10 or 99B.10A, for a period of ten
  4 12 years following at least ten days' written notice and
  4 13 opportunity for an evidentiary hearing, if a person awards a
  4 14 cash prize in violation of section 99B.10, subsection 1,
  4 15 pursuant to rules adopted by the department.  A person whose
  4 16 registration is revoked under this subsection who is a person
  4 17 for which a class "A", class "B", class "C", or class "D"
  4 18 liquor control license or class "B" beer permit has been
  4 19 issued pursuant to chapter 123 shall have the person's liquor
  4 20 control license or beer permit suspended for a period of
  4 21 fourteen days in the same manner as provided in section
  4 22 123.50, subsection 3, paragraph "a".
  4 23    Sec. 6.  Section 805.8C, Code 2003, is amended by adding
  4 24 the following new subsection:
  4 25    NEW SUBSECTION.  4.  ELECTRICAL AND MECHANICAL AMUSEMENT
  4 26 DEVICE VIOLATIONS.  For violations of legal age for operating
  4 27 an electrical and mechanical amusement device required to be
  4 28 registered as provided in section 99B.10, subsection 4,
  4 29 pursuant to section 99B.6, subsection 1, paragraph "k", the
  4 30 scheduled fine is two hundred fifty dollars.  Failure to pay
  4 31 the fine by a person under the age of eighteen shall not
  4 32 result in the person being detained in a secure facility.
  4 33    Sec. 7.  2003 Iowa Acts, chapter 147, section 5, is amended
  4 34 to read as follows:
  4 35    SEC. 5.  ELECTRICAL AND MECHANICAL AMUSEMENT DEVICES ==
  5  1 SPECIAL FUND.  Fees collected by the department of inspections
  5  2 and appeals pursuant to section sections 99B.10 and 99B.10A
  5  3 for the fiscal years beginning July 1, 2003, and July 1, 2004,
  5  4 shall be deposited in a special fund created in the state
  5  5 treasury.  Moneys in the fund are appropriated to the
  5  6 department of inspections and appeals and the department of
  5  7 public safety for administration and enforcement of sections
  5  8 99B.10 and 99B.10A, including employment of necessary
  5  9 personnel.  The distribution of moneys in the fund to the
  5 10 department of inspections and appeals and the department of
  5 11 public safety shall be pursuant to a written policy agreed
  5 12 upon by the departments.  Notwithstanding section 12C.7,
  5 13 subsection 2, interest or earnings on moneys deposited in the
  5 14 fund shall be credited to the fund.
  5 15    Sec. 8.  EFFECTIVE DATE == RETROACTIVE APPLICABILITY.  The
  5 16 section of this Act amending 2003 Iowa Acts, chapter 147,
  5 17 section 5, being deemed of immediate importance, takes effect
  5 18 upon enactment and is retroactively applicable to July 1,
  5 19 2003, and is applicable on and after that date.
  5 20                           EXPLANATION
  5 21    This bill concerns electrical and mechanical amusement
  5 22 devices that award prizes not based upon any skill and that
  5 23 are required to be registered with the department of
  5 24 inspections and appeals.
  5 25    Code section 99B.6 is amended to provide that, in places
  5 26 where certain liquor control licenses are issued, a person
  5 27 under the age of 21 cannot operate an electrical and
  5 28 mechanical amusement device required to be registered and a
  5 29 licensee cannot knowingly allow a person under age 21 to
  5 30 operate a device.  The change provides that a person under age
  5 31 21 that violates this provision commits a scheduled violation.
  5 32 Code section 805.8C is amended to provide that the scheduled
  5 33 fine is $250.
  5 34    Code section 99B.10, subsection 4, is amended to provide
  5 35 that an electrical and mechanical amusement device required to
  6  1 be registered can only be located on a premises that is not a
  6  2 nonprofit organization at a location for which certain liquor
  6  3 control licenses and beer permits allowing for the sale of
  6  4 liquor or beer have been issued.
  6  5    Code section 99B.10, subsection 4, is also amended to
  6  6 provide that a person owning or leasing an electrical and
  6  7 mechanical amusement device required to be registered shall
  6  8 not advertise the availability of the device as other than an
  6  9 electrical and mechanical amusement device pursuant to rules
  6 10 adopted by the department of inspections and appeals.
  6 11    Code section 99B.10 is amended by adding a new subsection
  6 12 that provides that each electrical or mechanical amusement
  6 13 device that is required to be registered shall, by January 1,
  6 14 2006, include a counting mechanism on the device.  The change
  6 15 provides that the department of inspections and appeals shall
  6 16 have access to information on the counting mechanism.
  6 17    Code section 99B.10A, providing for the registration of
  6 18 electrical and mechanical amusement devices by manufacturers
  6 19 and distributors, is amended.  The change provides that the
  6 20 registration and fee requirements of this section apply to
  6 21 for=profit owners of these devices.  In addition, a
  6 22 distributor is defined to mean an organization or person that
  6 23 is not=for=profit that owns more than four devices and all
  6 24 other persons that own more than two devices.  The bill then
  6 25 provides that the current $2,500 annual registration fee
  6 26 applies to manufacturers, manufacturer's representatives, and
  6 27 for=profit owners of two or fewer devices.  The bill provides
  6 28 that the annual registration fee for distributors shall be
  6 29 $5,000.
  6 30    Code section 99B.10B, concerning revocation of registration
  6 31 for electrical and mechanical amusement devices, is amended to
  6 32 provide that the department shall revoke the registration of a
  6 33 person for 10 years if the person awards a cash prize from the
  6 34 operation of an electrical and mechanical amusement device.
  6 35 In addition, the change provides that the same person's liquor
  7  1 control license or beer permit would be suspended for a period
  7  2 of 14 days.
  7  3    2003 Iowa Acts, chapter 147, section 5, which established a
  7  4 special fund concerning electrical and mechanical amusement
  7  5 devices, is amended to provide that the registration fees
  7  6 collected under Code section 99B.10A shall be deposited in the
  7  7 fund through June 30, 2005.  Moneys in the fund are used by
  7  8 the department of inspections and appeals and the department
  7  9 of public safety for enforcement.  The change in this
  7 10 provision is effective immediately and retroactively
  7 11 applicable to July 1, 2003.
  7 12 LSB 5225HV 80
  7 13 ec/gg/14