House Study Bill 206
HOUSE FILE
BY (PROPOSED COMMITTEE ON WAYS
AND MEANS BILL BY CHAIRPERSON
VAN FOSSEN)
Passed House, Date Passed Senate, Date
Vote: Ayes Nays Vote: Ayes Nays
Approved
A BILL FOR
1 An Act relating to horse racing, including fees for breeders of
2 certain native horses and minimum racing days and supplemental
3 purses for registered Iowa=bred horses.
4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
5 TLSB 2687YC 81
6 ec/cf/24
PAG LIN
1 1 Section 1. Section 99D.22, subsection 3, paragraph d, Code
1 2 2005, is amended to read as follows:
1 3 d. Adopt a schedule of fees to be charged to breeders of
1 4 thoroughbreds, quarter horses, or standardbreds to administer
1 5 this subsection. However, the annual fee for a brood mare or
1 6 a stallion shall be no more than ten dollars. In addition,
1 7 the fee for an Iowa=foaled horse of racing age that runs in
1 8 races restricted to registered Iowa=bred horses shall be a
1 9 one=time fee of no more than ten dollars during the period of
1 10 time the horse is of racing age. For purposes of this
1 11 paragraph, "brood mare" means a female horse whose sole
1 12 purpose is to produce offspring and "stallion" means a male
1 13 horse whose sole purpose is to provide stud services.
1 14 Sec. 2. Section 99F.6, subsection 4, paragraph a, Code
1 15 2005, is amended to read as follows:
1 16 a. Before a license is granted, the division of criminal
1 17 investigation of the department of public safety shall conduct
1 18 a thorough background investigation of the applicant for a
1 19 license to operate a gambling game operation on an excursion
1 20 gambling boat. The applicant shall provide information on a
1 21 form as required by the division of criminal investigation. A
1 22 qualified sponsoring organization licensed to operate gambling
1 23 games under this chapter shall distribute the receipts of all
1 24 gambling games, less reasonable expenses, charges, taxes,
1 25 fees, and deductions allowed under this chapter, as winnings
1 26 to players or participants or shall distribute the receipts
1 27 for educational, civic, public, charitable, patriotic, or
1 28 religious uses as defined in section 99B.7, subsection 3,
1 29 paragraph "b". However, a licensee to conduct gambling games
1 30 under this chapter shall, unless an operating agreement for an
1 31 excursion gambling boat otherwise provides, distribute at
1 32 least three percent of the adjusted gross receipts for each
1 33 license year for educational, civic, public, charitable,
1 34 patriotic, or religious uses as defined in section 99B.7,
1 35 subsection 3, paragraph "b". However, if a licensee who is
2 1 also licensed to conduct pari=mutuel wagering at a horse
2 2 racetrack has unpaid debt from the pari=mutuel racetrack
2 3 operations, the first receipts of the gambling games operated
2 4 within the racetrack enclosure less reasonable operating
2 5 expenses, taxes, and fees allowed under this chapter shall be
2 6 first used to pay the annual indebtedness. The commission
2 7 shall authorize, subject to the debt payments for horse
2 8 racetracks and the provisions of paragraph "b" for dog
2 9 racetracks, a licensee who is also licensed to conduct pari=
2 10 mutuel dog or horse racing to use receipts from gambling games
2 11 within the racetrack enclosure to supplement purses for races
2 12 particularly for Iowa=bred horses pursuant to an agreement
2 13 which shall be negotiated between the licensee and
2 14 representatives of the dog or horse owners. For agreements
2 15 subject to commission approval concerning purses for horse
2 16 racing beginning on or after January 1, 2006, and ending
2 17 before January 1, 2021, the agreements shall provide that
2 18 total annual purses for all horse racing shall be no less than
2 19 eleven percent of the first two hundred million dollars of net
2 20 receipts, and six percent of net receipts above two hundred
2 21 million dollars, and shall provide that at least twenty
2 22 percent of the total annual purses shall be used to supplement
2 23 purses for registered Iowa=bred horses. Agreements that are
2 24 subject to commission approval concerning horse purses for a
2 25 particular period of time beginning on or after January 1,
2 26 2006, and ending before January 1, 2021, shall be jointly
2 27 submitted to the commission for approval. A qualified
2 28 sponsoring organization shall not make a contribution to a
2 29 candidate, political committee, candidate's committee, state
2 30 statutory political committee, county statutory political
2 31 committee, national political party, or fund=raising event as
2 32 these terms are defined in section 68A.102. The membership of
2 33 the board of directors of a qualified sponsoring organization
2 34 shall represent a broad interest of the communities. For
2 35 purposes of this paragraph, "net receipts" means the annual
3 1 adjusted gross receipts from all gambling games less the
3 2 annual amount of money pledged by the owner of the facility to
3 3 fund a project approved to receive vision Iowa funds as of
3 4 July 1, 2004.
3 5 Sec. 3. Section 99F.6, subsection 4, Code 2005, is amended
3 6 by adding the following new paragraph:
3 7 NEW PARAGRAPH. c. The commission shall authorize the
3 8 licensee of a pari=mutuel horse racetrack located in Polk
3 9 county to conduct gambling games as provided in section 99F.4A
3 10 if the licensee schedules at least one hundred fifteen live
3 11 horse racing performances of at least nine live races each
3 12 performance day during a calendar year.
3 13 EXPLANATION
3 14 This bill concerns horse racing at a racetrack enclosure
3 15 licensed to conduct gambling games.
3 16 The bill limits the fees charged by the department of
3 17 agriculture and land stewardship to breeders of thoroughbreds,
3 18 quarter horses, or standardbreds for implementing the
3 19 provisions of Code section 99D.22 concerning native horses.
3 20 The bill provides that the annual fee for a brood mare or
3 21 stallion shall be no more than $10 and that Iowa=foaled horses
3 22 of racing age that run in registered Iowa=bred horse races
3 23 shall be subject to a one=time fee of not more than $10 while
3 24 the horse is of racing age.
3 25 The bill establishes that agreements on horse racing purses
3 26 negotiated for horse racing conducted from January 2006
3 27 through January 2021 shall provide that at least 20 percent of
3 28 the total annual purse shall be used to supplement purses for
3 29 registered Iowa=bred horses.
3 30 The bill also provides that a licensee of a horse racetrack
3 31 located in Polk county shall be allowed to conduct gambling
3 32 games only if the licensee schedules at least 115 live horse
3 33 racing performances of at least nine live races each
3 34 performance day during a calendar year.
3 35 LSB 2687YC 81
4 1 ec:nh/cf/24