House File 2517 - Introduced
HOUSE FILE
BY R. OLSON, SCHUELLER, QUIRK,
SHOMSHOR, TJEPKES, GRANZOW,
JONES, UPMEYER, S. OLSON,
LALK, DE BOEF, CHAMBERS, ALONS,
ARNOLD, VAN ENGELENHOVEN,
TOMENGA, SANDS, WILDERDYKE,
DRAKE, ROBERTS, LYKAM,
KURTENBACH, J.R. VAN FOSSEN,
REASONER, BELL, BAUDLER, and
KAUFMANN
Passed House, Date Passed Senate, Date
Vote: Ayes Nays Vote: Ayes Nays
Approved
A BILL FOR
1 An Act concerning horse racing by providing for minimum racing
2 days and arbitration for resolving disputes on horse racing
3 agreements among representatives of horse breeds.
4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
5 TLSB 6056HH 81
6 ec/je/5
PAG LIN
1 1 Section 1. Section 99F.6, subsection 4, paragraph a, Code
1 2 Supplement 2005, is amended to read as follows:
1 3 a. Before a license is granted, the division of criminal
1 4 investigation of the department of public safety shall conduct
1 5 a thorough background investigation of the applicant for a
1 6 license to operate a gambling game operation on an excursion
1 7 gambling boat. The applicant shall provide information on a
1 8 form as required by the division of criminal investigation. A
1 9 qualified sponsoring organization licensed to operate gambling
1 10 games under this chapter shall distribute the receipts of all
1 11 gambling games, less reasonable expenses, charges, taxes,
1 12 fees, and deductions allowed under this chapter, as winnings
1 13 to players or participants or shall distribute the receipts
1 14 for educational, civic, public, charitable, patriotic, or
1 15 religious uses as defined in section 99B.7, subsection 3,
1 16 paragraph "b". However, a licensee to conduct gambling games
1 17 under this chapter shall, unless an operating agreement for an
1 18 excursion gambling boat otherwise provides, distribute at
1 19 least three percent of the adjusted gross receipts for each
1 20 license year for educational, civic, public, charitable,
1 21 patriotic, or religious uses as defined in section 99B.7,
1 22 subsection 3, paragraph "b". However, if a licensee who is
1 23 also licensed to conduct pari=mutuel wagering at a horse
1 24 racetrack has unpaid debt from the pari=mutuel racetrack
1 25 operations, the first receipts of the gambling games operated
1 26 within the racetrack enclosure less reasonable operating
1 27 expenses, taxes, and fees allowed under this chapter shall be
1 28 first used to pay the annual indebtedness. The commission
1 29 shall authorize, subject to the debt payments for horse
1 30 racetracks and the provisions of paragraph "b" for dog
1 31 racetracks, and the debt payment provisions of this paragraph
1 32 and the provisions of paragraph "c" for horse racetracks, a
1 33 licensee who is also licensed to conduct pari=mutuel dog or
1 34 horse racing to use receipts from gambling games within the
1 35 racetrack enclosure to supplement purses for races
2 1 particularly for Iowa=bred horses pursuant to an agreement
2 2 which shall be negotiated between the licensee and
2 3 representatives of the dog or horse owners. For agreements
2 4 subject to commission approval concerning purses for horse
2 5 racing beginning on or after January 1, 2006, and ending
2 6 before January 1, 2021, the agreements shall provide that
2 7 total annual purses for all horse racing shall be no less than
2 8 eleven percent of the first two hundred million dollars of net
2 9 receipts, and six percent of net receipts above two hundred
2 10 million dollars. Agreements that are subject to commission
2 11 approval concerning horse purses for a particular period of
2 12 time beginning on or after January 1, 2006, and ending before
2 13 January 1, 2021, shall be jointly submitted to the commission
2 14 for approval. A qualified sponsoring organization shall not
2 15 make a contribution to a candidate, political committee,
2 16 candidate's committee, state statutory political committee,
2 17 county statutory political committee, national political
2 18 party, or fund=raising event as these terms are defined in
2 19 section 68A.102. The membership of the board of directors of
2 20 a qualified sponsoring organization shall represent a broad
2 21 interest of the communities. For purposes of this paragraph,
2 22 "net receipts" means the annual adjusted gross receipts from
2 23 all gambling games less the annual amount of money pledged by
2 24 the owner of the facility to fund a project approved to
2 25 receive vision Iowa funds as of July 1, 2004.
2 26 Sec. 2. Section 99F.6, subsection 4, Code Supplement 2005,
2 27 is amended by adding the following new paragraph:
2 28 NEW PARAGRAPH. c. (1) The commission shall authorize the
2 29 licensee of a pari=mutuel horse racetrack located in Polk
2 30 county to conduct gambling games as provided in section 99F.4A
2 31 if the licensee schedules at least one hundred fourteen live
2 32 horse racing performances of at least ten live races each
2 33 performance day between April 15 and October 15 during a
2 34 calendar year.
2 35 (2) For agreements subject to commission approval
3 1 concerning purses for horse racing beginning on or after
3 2 January 1, 2006, and ending before January 1, 2021, the
3 3 agreements shall provide that total annual purses for all
3 4 horse racing shall be no less than eleven percent of the first
3 5 two hundred million dollars of net receipts, and six percent
3 6 of net receipts above two hundred million dollars. Agreements
3 7 that are subject to commission approval concerning horse
3 8 racing, including but not limited to provisions governing
3 9 horse purses and the purses for each applicable horse breed,
3 10 racing schedules, and the number of live racing events per
3 11 racing day, for a particular period of time beginning on or
3 12 after January 1, 2006, and ending before January 1, 2021,
3 13 shall be jointly submitted to the commission for approval.
3 14 For agreements concerning horse racing between the licensee
3 15 operating the horse racetrack located in Polk county and
3 16 representatives of standardbred horse owners, the agreement
3 17 shall include a supplemental amount to be paid for
3 18 standardbred horse races held at county fair racetracks in the
3 19 state which shall be no less than the supplemental amount paid
3 20 for county fair horse races in calendar year 2005. If any
3 21 party representing thoroughbreds, quarter horses, or
3 22 standardbred horses that race at the racetrack enclosure fails
3 23 to reach agreement concerning horse racing, the commission
3 24 shall impose arbitration and an arbitration timetable for the
3 25 licensee and the representative or representatives of the
3 26 applicable horse breed not in agreement. Each party shall
3 27 select a representative, and the two representatives shall
3 28 select a third person to assist in negotiating an agreement.
3 29 Alternately, each party shall submit the name of the proposed
3 30 third person to the commission, who shall then select one of
3 31 the two persons to serve as the third party. All parties to
3 32 the negotiations, including the commission, shall consider
3 33 that the purpose of building the horse racetrack was to
3 34 facilitate the development and promotion of Iowa thoroughbred,
3 35 quarter horse, and standardbred horses in this state and shall
4 1 negotiate and make decisions in accordance with that purpose.
4 2 For purposes of this subparagraph, "net receipts" means the
4 3 annual adjusted gross receipts from all gambling games less
4 4 the annual amount of money pledged by the owner of the
4 5 facility to fund a project approved to receive vision Iowa
4 6 funds as of July 1, 2004.
4 7 EXPLANATION
4 8 This bill concerns horse racing at a racetrack enclosure
4 9 licensed to conduct gambling games.
4 10 The bill provides that a licensee of a horse racetrack
4 11 located in Polk county shall be allowed to conduct gambling
4 12 games only if the licensee schedules at least 114 live horse
4 13 racing performances of at least 10 live races each performance
4 14 day between April 15 and October 15 during a calendar year.
4 15 The bill provides that agreements on horse racing shall
4 16 include provisions governing horse purses, purses per horse
4 17 breed, the number of racing days, and the number of live
4 18 racing events per day. In addition, the bill provides that
4 19 the agreement with representatives of standardbred horse
4 20 owners shall include a supplemental amount to be paid for
4 21 races held at county fairs which shall be no less than the
4 22 supplemental amount paid for county fair horse races in
4 23 calendar year 2005.
4 24 The bill also provides that if a party representing
4 25 thoroughbreds, quarter horses, or standardbred horses that
4 26 race at the racetrack enclosure is unable to reach agreement
4 27 on horse racing, the racing and gaming commission shall impose
4 28 arbitration and establish an arbitration timetable to resolve
4 29 the dispute. The bill provides that each party to the dispute
4 30 shall select a representative and the two representatives
4 31 shall select a third party, or each party to the dispute shall
4 32 submit a name to the commission, who shall select the third
4 33 party. The bill provides that the parties involved in the
4 34 arbitration, including the commission, shall consider that the
4 35 horse racetrack was built to facilitate the development and
5 1 promotion of Iowa thoroughbred, quarter horse, and
5 2 standardbred horses in this state.
5 3 LSB 6056HH 81
5 4 ec:rj/je/5.1