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