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.  A Not more than two jackpot bingo game games may
  1 28 be conducted once during any twenty=four hour twenty=four=hour
  1 29 period in which the prize may begin at not more than three
  1 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