House File 372 - Introduced HOUSE FILE BY R. OLSON Passed House, Date Passed Senate, Date Vote: Ayes Nays Vote: Ayes Nays Approved A BILL FOR 1 An Act concerning approval of horse racing purse agreements. 2 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 3 TLSB 2340HH 82 4 ec/es/88 PAG LIN 1 1 Section 1. Section 99F.6, subsection 4, paragraph a, Code 1 2 2007, 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 1 32 pari=mutuel dog or horse racing to use receipts from gambling 1 33 games within the racetrack enclosure to supplement purses for 1 34 races particularly for Iowa=bred horses pursuant to an 1 35 agreement 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.AgreementsAny agreement thatareis subject 2 9 to commission approval concerning horse purses for a 2 10 particular period of time beginning on or after January 1, 2 11 2006, and ending before January 1, 2021, shall bejointly2 12 individually submitted to the commission for approval. A 2 13 qualified sponsoring organization shall not make a 2 14 contribution to a candidate, political committee, candidate's 2 15 committee, state statutory political committee, county 2 16 statutory political committee, national political party, or 2 17 fund=raising event as these terms are defined in section 2 18 68A.102. The membership of the board of directors of a 2 19 qualified sponsoring organization shall represent a broad 2 20 interest of the communities. For purposes of this paragraph, 2 21 "net receipts" means the annual adjusted gross receipts from 2 22 all gambling games less the annual amount of money pledged by 2 23 the owner of the facility to fund a project approved to 2 24 receive vision Iowa funds as of July 1, 2004. 2 25 EXPLANATION 2 26 This bill provides that any agreement concerning horse 2 27 purses shall be individually submitted to the racing and 2 28 gaming commission for approval. Current law provides that 2 29 agreements concerning horse purses shall be jointly submitted 2 30 to the commission for approval. 2 31 LSB 2340HH 82 2 32 ec:nh/es/88