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