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,ordistributor, 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 feeof two thousand 3 4 five hundred dollarsin 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 tosectionsections 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