House File 411 - Introduced HOUSE FILE BY KURTENBACH, ROBERTS, LYKAM, SHOMSHOR, DAVITT, WILDERDYKE, KAUFMANN, RASMUSSEN, BAUDLER, WATTS, QUIRK, REASONER, BELL, and R. OLSON Passed House, Date Passed Senate, Date Vote: Ayes Nays Vote: Ayes Nays Approved A BILL FOR 1 An Act relating to horse racing by providing minimum racing days 2 and supplemental purses for registered Iowa=bred horses. 3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 4 TLSB 2828HH 81 5 ec/cf/24 PAG LIN 1 1 Section 1. Section 99F.6, subsection 4, paragraph a, Code 1 2 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, a licensee who is also licensed to conduct pari= 1 32 mutuel dog or horse racing to use receipts from gambling games 1 33 within the racetrack enclosure to supplement purses for races 1 34 particularly for Iowa=bred horses pursuant to an agreement 1 35 which shall be negotiated between the licensee and 2 1 representatives of the dog or horse owners. For agreements 2 2 subject to commission approval concerning purses for horse 2 3 racing beginning on or after January 1, 2006, and ending 2 4 before January 1, 2021, the agreements shall provide that 2 5 total annual purses for all horse racing shall be no less than 2 6 eleven percent of the first two hundred million dollars of net 2 7 receipts, and six percent of net receipts above two hundred 2 8 million dollars, and shall provide that at least twenty 2 9 percent of the total annual purses shall be used to supplement 2 10 purses for registered Iowa=bred horses. Agreements that are 2 11 subject to commission approval concerning horse purses for a 2 12 particular period of time beginning on or after January 1, 2 13 2006, and ending before January 1, 2021, shall be jointly 2 14 submitted to the commission for approval. A qualified 2 15 sponsoring organization shall not make a contribution to a 2 16 candidate, political committee, candidate's committee, state 2 17 statutory political committee, county statutory political 2 18 committee, national political party, or fund=raising event as 2 19 these terms are defined in section 68A.102. The membership of 2 20 the board of directors of a qualified sponsoring organization 2 21 shall represent a broad interest of the communities. For 2 22 purposes of this paragraph, "net receipts" means the annual 2 23 adjusted gross receipts from all gambling games less the 2 24 annual amount of money pledged by the owner of the facility to 2 25 fund a project approved to receive vision Iowa funds as of 2 26 July 1, 2004. 2 27 Sec. 2. Section 99F.6, subsection 4, Code 2005, is amended 2 28 by adding the following new paragraph: 2 29 NEW PARAGRAPH. c. The commission shall authorize the 2 30 licensee of a pari=mutuel horse racetrack located in Polk 2 31 county to conduct gambling games as provided in section 99F.4A 2 32 if the licensee schedules at least one hundred fifteen live 2 33 horse racing performances of at least nine live races each 2 34 performance day during a calendar year. 2 35 EXPLANATION 3 1 This bill concerns horse racing at a racetrack enclosure 3 2 licensed to conduct gambling games. 3 3 The bill establishes that agreements on horse racing purses 3 4 negotiated for horse racing conducted from January 2006 3 5 through January 2021 shall provide that at least 20 percent of 3 6 the total annual purse shall be used to supplement purses for 3 7 registered Iowa=bred horses. 3 8 The bill also provides that a licensee of a horse racetrack 3 9 located in Polk county shall be allowed to conduct gambling 3 10 games only if the licensee schedules at least 115 live horse 3 11 racing performances of at least nine live races each 3 12 performance day during a calendar year. 3 13 LSB 2828HH 81 3 14 ec:nh/cf/24