House File 77 HOUSE FILE BY JOCHUM Passed House, Date Passed Senate, Date Vote: Ayes Nays Vote: Ayes Nays Approved A BILL FOR 1 An Act relating to bingo games and games using pull=tab tickets 2 conducted by qualified organizations. 3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 4 TLSB 1481HH 80 5 ec/sh/8 PAG LIN 1 1 Section 1. Section 99B.7, subsection 1, unnumbered 1 2 paragraph 1, Code 2003, is amended to read as follows: 1 3 Except as otherwise provided in section 99B.8, games of 1 4 skill, games of chance, games using pull=tab tickets, and 1 5 raffles lawfully may be conducted at a specified location 1 6 meeting the requirements of subsection 2 of this section, but 1 7 only if all of the following are complied with: 1 8 Sec. 2. Section 99B.7, subsection 1, paragraph b, Code 1 9 2003, is amended to read as follows: 1 10 b. No person receives or has any fixed or contingent right 1 11 to receive, directly or indirectly, any profit, remuneration, 1 12 or compensation from or related to a game of skill, game of 1 13 chance, game using pull=tab tickets, or raffle, except any 1 14 amount which the person may win as a participant on the same 1 15 basis as the other participants. A person conducting a game or 1 16 raffle shall not be a participant in the game or raffle. 1 17 Sec. 3. Section 99B.7, subsection 1, paragraph c, 1 18 unnumbered paragraph 1, Code 2003, is amended to read as 1 19 follows: 1 20 Cash or merchandise prizes may be awarded in the game of 1 21 bingo and, except as otherwise provided in this paragraph, 1 22 shall not exceed one hundred dollars. Merchandise prizes may 1 23 be awarded in the game of bingo, but the actual retail value 1 24 of the prize, or if the prize consists of more than one item, 1 25 unit or part, the aggregate retail value of all items, units 1 26 or parts, shall not exceed the maximum provided by this 1 27 paragraph.ANot more than two jackpot bingogamegames may 1 28 be conductedonceduring anytwenty=four hourtwenty=four=hour 1 29 period in which the prize may begin at not more thanthree1 30 four hundred dollars in cash or actual retail value of 1 31 merchandise prizes and may be increased by not more than one 1 32 hundred dollars after each bingo occasion. However, the cost 1 33 of play in a jackpot bingo game shall not be increased and the 1 34 jackpot shall not amount to more than eight hundred dollars in 1 35 cash or actual retail value of merchandise prizes. A jackpot 2 1 bingo game is not prohibited by paragraph "h". A bingo 2 2 occasion shall not last for longer than four consecutive 2 3 hours. A qualified organization shall not hold more than 2 4 fourteen bingo occasions per month. Bingo occasions held 2 5 under a limited license shall not be counted in determining 2 6 whether a qualified organization has conducted more than 2 7 fourteen bingo occasions per month, nor shall bingo occasions 2 8 held under a limited license be limited to four consecutive 2 9 hours. With the exception of a limited license bingo, no more 2 10 than three bingo occasions per week shall be held within a 2 11 structure or building and only one person licensed to conduct 2 12 games under this section may hold bingo occasions within a 2 13 structure or building. A licensed qualified organization 2 14 shall not conduct free games. 2 15 Sec. 4. Section 99B.7, subsection 1, paragraph d, 2 16 unnumbered paragraph 1, Code 2003, is amended to read as 2 17 follows: 2 18 Cash prizes shall not be awarded in games other than bingo, 2 19 games using pull=tab tickets, and raffles. The value of a 2 20 prize shall not exceed ten thousand dollars and merchandise 2 21 prizes shall not be repurchased. If a prize consists of more 2 22 than one item, unit, or part, the aggregate value of all 2 23 items, units, or parts shall not exceed ten thousand dollars. 2 24 However, one raffle may be conducted per calendar year at 2 25 which real property or one or more merchandise prizes having a 2 26 combined value of more than ten thousand dollars may be 2 27 awarded. 2 28 Sec. 5. Section 99B.7, subsection 2, unnumbered paragraph 2 29 1, Code 2003, is amended to read as follows: 2 30 Games of skill, games of chance, games using pull=tab 2 31 tickets, and raffles may be conducted on premises owned or 2 32 leased by the licensee, but shall not be conducted on rented 2 33 premises unless the premises are rented from a person licensed 2 34 under this section, and unless the net rent received is 2 35 dedicated to one or more of the uses permitted under 3 1 subsection 3 for dedication of net receipts. This subsection 3 2 shall not apply where the rented premises are those upon which 3 3 a qualified organization usually carries out a lawful business 3 4 other than operating games of skill, games of chance, games 3 5 using pull=tab tickets, or raffles. However, a qualified 3 6 organization may rent premises other than from a licensed 3 7 qualified organization to be used for the conduct of games of 3 8 skill, games of chance, games using pull=tab tickets, and 3 9 raffles, and the person from whom the premises are rented may 3 10 impose and collect rent for such use of those premises, but 3 11 only if all of the following are complied with: 3 12 Sec. 6. Section 99B.7, subsection 4, Code 2003, is amended 3 13 by striking the subsection. 3 14 Sec. 7. Section 99B.7, subsection 8, Code 2003, is amended 3 15 to read as follows: 3 16 8. A qualified organization licensed under this section 3 17 shall purchase games using pull=tab tickets and bingo 3 18 equipment and supplies only from a manufacturer or a 3 19 distributor licensed by the department. 3 20 Sec. 8. Section 99B.7A, Code 2003, is amended to read as 3 21 follows: 3 22 99B.7A MANUFACTURERS AND DISTRIBUTORS OF PULL-TAB GAMES OR 3 23 BINGO EQUIPMENT AND SUPPLIES == LICENSE. 3 24 A person shall not engage in business as a manufacturer or 3 25 a distributor of games using pull=tab tickets or bingo 3 26 equipment and supplies in this state without first obtaining a 3 27 license from the department. Upon receipt of an application 3 28 and a fee of one thousand dollars for a manufacturer's license 3 29 or a fee of five hundred dollars for a distributor's license, 3 30 the department shall issue an annual license as applicable. 3 31 The application shall be submitted on forms furnished by the 3 32 department and contain the information required by rule of the 3 33 department. A license may be renewed annually upon payment of 3 34 the annual license fee and compliance with this chapter. 3 35 EXPLANATION 4 1 This bill amends provisions relating to qualified 4 2 organizations conducting bingo games and authorizes qualified 4 3 organizations to conduct games using pull=tab tickets. 4 4 The bill authorizes qualified organization licensees to 4 5 conduct two jackpot bingo games during any 24=hour period at a 4 6 maximum beginning value of $400 each. Currently, a licensee 4 7 may have one jackpot bingo game at a maximum beginning value 4 8 of $300. 4 9 Also, the bill strikes the provision that if a qualified 4 10 organization licensee derives 90 percent or more of its total 4 11 income from bingo, raffles, and small games of chance, at 4 12 least 75 percent of the licensee's net receipts shall be 4 13 distributed to an unrelated entity for an educational, civic, 4 14 public, charitable, patriotic, or religious use. 4 15 The bill authorizes certain qualified organizations to 4 16 conduct games using pull=tab tickets. The pull=tabs must be 4 17 purchased from a licensed manufacturer or distributor in the 4 18 same manner as bingo equipment and supplies are purchased. 4 19 The manufacturers and distributors are licensed by the 4 20 department of inspections and appeals. 4 21 LSB 1481HH 80 4 22 ec/sh/8