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