House File 838 - Introduced
HOUSE FILE
BY COMMITTEE ON STATE GOVERNMENT
(SUCCESSOR TO HF 372)
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 pari-mutuel
2 wagering, minimum racing days and negotiations for resolving
3 disputes on horse racing agreements among representatives of
4 horse breeds, and county gambling elections, and including
5 effective date and retroactive applicability provisions.
6 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
7 TLSB 2340HV 82
8 ec/es/88
PAG LIN
1 1 Section 1. Section 99D.11, subsection 6, paragraph b, Code
1 2 2007, is amended to read as follows:
1 3 b. (1) The commission may authorize the licensee to
1 4 simultaneously telecast within the racetrack enclosure, for
1 5 the purpose of pari=mutuel wagering, a horse or dog race
1 6 licensed by the racing authority of another state. It is the
1 7 responsibility of each licensee to obtain the consent of
1 8 appropriate racing officials in other states as required by
1 9 the federal Interstate Horseracing Act of 1978, 15 U.S.C. }
1 10 3001=3007, to televise races for the purpose of conducting
1 11 pari=mutuel wagering.
1 12 (2) A licensee may also obtain the permission of a person
1 13 licensed by the commission to conduct horse or dog races in
1 14 this state to televise races conducted by that person for the
1 15 purpose of conducting pari=mutuel racing. However,
1 16 arrangements made by a licensee to televise any race for the
1 17 purpose of conducting pari=mutuel wagering are subject to the
1 18 approval of the commission, and the commission shall select
1 19 the races to be televised. The races selected by the
1 20 commission shall be the same for all licensees approved by the
1 21 commission to televise races for the purpose of conducting
1 22 pari=mutuel wagering. The commission shall not authorize the
1 23 simultaneous telecast or televising of and a licensee shall
1 24 not simultaneously telecast or televise any horse or dog race
1 25 for the purpose of conducting pari=mutuel wagering unless the
1 26 simultaneous telecast or televising is done at the racetrack
1 27 of a licensee that schedules no less than sixty performances
1 28 of nine live races each day of the season or is done for an
1 29 entity licensed in another state to conduct pari=mutuel
1 30 wagering that accepts wagers only within states in which it is
1 31 licensed or authorized to accept wagers.
1 32 (3) For purposes of the taxes imposed under this chapter,
1 33 races televised by a licensee for purposes of pari=mutuel
1 34 wagering shall be treated as if the races were held at the
1 35 racetrack of the licensee. Notwithstanding any contrary
2 1 provision in this chapter, the commission may allow a licensee
2 2 to adopt the same deductions as those of the pari=mutuel
2 3 racetrack from which the races are being simultaneously
2 4 telecast.
2 5 Sec. 2. Section 99F.6, subsection 4, paragraph a, Code
2 6 2007, is amended to read as follows:
2 7 a. Before a license is granted, the division of criminal
2 8 investigation of the department of public safety shall conduct
2 9 a thorough background investigation of the applicant for a
2 10 license to operate a gambling game operation on an excursion
2 11 gambling boat. The applicant shall provide information on a
2 12 form as required by the division of criminal investigation. A
2 13 qualified sponsoring organization licensed to operate gambling
2 14 games under this chapter shall distribute the receipts of all
2 15 gambling games, less reasonable expenses, charges, taxes,
2 16 fees, and deductions allowed under this chapter, as winnings
2 17 to players or participants or shall distribute the receipts
2 18 for educational, civic, public, charitable, patriotic, or
2 19 religious uses as defined in section 99B.7, subsection 3,
2 20 paragraph "b". However, a licensee to conduct gambling games
2 21 under this chapter shall, unless an operating agreement for an
2 22 excursion gambling boat otherwise provides, distribute at
2 23 least three percent of the adjusted gross receipts for each
2 24 license year for educational, civic, public, charitable,
2 25 patriotic, or religious uses as defined in section 99B.7,
2 26 subsection 3, paragraph "b". However, if a licensee who is
2 27 also licensed to conduct pari=mutuel wagering at a horse
2 28 racetrack has unpaid debt from the pari=mutuel racetrack
2 29 operations, the first receipts of the gambling games operated
2 30 within the racetrack enclosure less reasonable operating
2 31 expenses, taxes, and fees allowed under this chapter shall be
2 32 first used to pay the annual indebtedness. The commission
2 33 shall authorize, subject to the debt payments for horse
2 34 racetracks and the provisions of paragraph "b" for dog
2 35 racetracks, and the debt payment provisions of this paragraph
3 1 and the provisions of paragraph "c" for horse racetracks, a
3 2 licensee who is also licensed to conduct pari=mutuel dog or
3 3 horse racing to use receipts from gambling games within the
3 4 racetrack enclosure to supplement purses for races
3 5 particularly for Iowa=bred horses pursuant to an agreement
3 6 which shall be negotiated between the licensee and
3 7 representatives of the dog or horse owners. For agreements
3 8 subject to commission approval concerning purses for horse
3 9 racing beginning on or after January 1, 2006, and ending
3 10 before January 1, 2021, the agreements shall provide that
3 11 total annual purses for all horse racing shall be no less than
3 12 eleven percent of the first two hundred million dollars of net
3 13 receipts, and six percent of net receipts above two hundred
3 14 million dollars. Agreements that are subject to commission
3 15 approval concerning horse purses for a particular period of
3 16 time beginning on or after January 1, 2006, and ending before
3 17 January 1, 2021, shall be jointly submitted to the commission
3 18 for approval. A qualified sponsoring organization shall not
3 19 make a contribution to a candidate, political committee,
3 20 candidate's committee, state statutory political committee,
3 21 county statutory political committee, national political
3 22 party, or fund=raising event as these terms are defined in
3 23 section 68A.102. The membership of the board of directors of
3 24 a qualified sponsoring organization shall represent a broad
3 25 interest of the communities. For purposes of this paragraph,
3 26 "net receipts" means the annual adjusted gross receipts from
3 27 all gambling games less the annual amount of money pledged by
3 28 the owner of the facility to fund a project approved to
3 29 receive vision Iowa funds as of July 1, 2004.
3 30 Sec. 3. Section 99F.6, subsection 4, Code 2007, is amended
3 31 by adding the following new paragraph:
3 32 NEW PARAGRAPH. c. (1) The commission shall authorize the
3 33 licensee of a pari=mutuel horse racetrack located in Polk
3 34 county to conduct gambling games as provided in section 99F.4A
3 35 if the licensee schedules, during a calendar year, two hundred
4 1 live horse racing performances of at least four live races
4 2 each performance day for fifty performance days between June 1
4 3 and October 1 for quarter horses, seven hundred sixty live
4 4 racing performances of at least eight live races each
4 5 performance day for ninety performance days between April 15
4 6 and October 15 for thoroughbred horses, and at least nine live
4 7 races each performance day for twenty performance days between
4 8 September 1 and November 15 for standardbred horses.
4 9 (2) For agreements subject to commission approval
4 10 concerning purses for horse racing beginning on or after
4 11 January 1, 2008, and ending before January 1, 2021, the
4 12 agreements shall provide that total annual purses for all
4 13 horse racing shall be no less than eleven percent of the first
4 14 two hundred million dollars of net receipts, and six percent
4 15 of net receipts above two hundred million dollars. Any
4 16 agreement that is subject to commission approval concerning
4 17 horse racing beginning on or after January 1, 2008, and ending
4 18 before January 1, 2021, including but not limited to
4 19 provisions governing horse purses and the purses for each
4 20 applicable horse breed, racing schedules, and the number of
4 21 live racing events per racing day, shall be individually
4 22 submitted to the commission for approval. If any party
4 23 representing thoroughbreds, quarter horses, or standardbred
4 24 horses that race at the racetrack enclosure fails to reach
4 25 agreement concerning horse racing for a particular horse
4 26 breed, the commission shall impose a negotiating timetable to
4 27 insure no interruption of business activity. If the two
4 28 parties cannot reach agreement, each party shall select a
4 29 representative and the two representatives shall select a
4 30 third person to assist in negotiating an agreement. The two
4 31 representatives may select the commission or one of its
4 32 members to serve as the third party. Alternately, each party
4 33 shall submit the name of the proposed third person to the
4 34 commission who shall then select one of the two persons to
4 35 serve as the third party. All parties to the negotiations,
5 1 including the commission, shall consider that the purpose of
5 2 building the horse racetrack was to facilitate the development
5 3 and promotion of Iowa thoroughbred, quarter horse, and
5 4 standardbred horses in this state and shall negotiate and make
5 5 decisions in accordance with that purpose. For purposes of
5 6 this subparagraph, "net receipts" means the annual adjusted
5 7 gross receipts from all gambling games less the annual amount
5 8 of money pledged by the owner of the facility to fund a
5 9 project approved to receive vision Iowa funds as of July 1,
5 10 2004.
5 11 Sec. 4. Section 99F.7, subsection 11, Code 2007, is
5 12 amended to read as follows:
5 13 11. a. A license to conduct gambling games on an
5 14 excursion gambling boat or at a racetrack enclosure in a
5 15 county shall be issued only if the county electorate approves
5 16 the conduct of the gambling games as provided in this
5 17 subsection. The board of supervisors, upon receipt of a valid
5 18 petition meeting the requirements of section 331.306, and
5 19 subject to the requirements of paragraph "e", shall direct the
5 20 commissioner of elections to submit to the registered voters
5 21 of the county a proposition to approve or disapprove the
5 22 conduct of gambling games on an excursion gambling boat or at
5 23 a racetrack enclosure in the county. The proposition shall be
5 24 submitted at a general election or at a special election
5 25 called for that purpose. To be submitted at a general
5 26 election, the petition must be received by the board of
5 27 supervisors at least five working days before the last day for
5 28 candidates for county offices to file nomination papers for
5 29 the general election pursuant to section 44.4. If a majority
5 30 of the county voters voting on the proposition favor the
5 31 conduct of gambling games, the commission may issue one or
5 32 more licenses as provided in this chapter. If a majority of
5 33 the county voters voting on the proposition do not favor the
5 34 conduct of gambling games, a license to conduct gambling games
5 35 in the county shall not be issued.
6 1 b. If licenses a license to conduct gambling games and to
6 2 operate on an excursion gambling boat are or at a racetrack
6 3 enclosure is in effect pursuant to a referendum as set forth
6 4 in this section and are is subsequently disapproved by a
6 5 referendum of the county electorate, the licenses license
6 6 issued by the commission after a referendum approving gambling
6 7 games on an excursion gambling boats boat or at a racetrack
6 8 enclosure shall remain valid and are is subject to renewal for
6 9 a total of nine years one year from the date of original issue
6 10 the referendum disapproving the conduct of gambling games in
6 11 the county unless the commission revokes a license at an
6 12 earlier date as provided in this chapter.
6 13 c. If a licensee of a pari=mutuel racetrack who held a
6 14 valid license issued under chapter 99D as of January 1, 1994,
6 15 requests a license to operate gambling games as provided in
6 16 this chapter, the board of supervisors of a county in which
6 17 the licensee of a pari=mutuel racetrack requests a license to
6 18 operate gambling games shall submit to the county electorate a
6 19 proposition to approve or disapprove the operation of gambling
6 20 games at pari=mutuel racetracks at a special election at the
6 21 earliest practicable time. If the operation of gambling games
6 22 at the pari=mutuel racetrack is not approved by a majority of
6 23 the county electorate voting on the proposition at the
6 24 election, the commission shall not issue a license to operate
6 25 gambling games at the racetrack.
6 26 d. If the proposition to operate gambling games on an
6 27 excursion gambling boat or at a racetrack enclosure is
6 28 approved by a majority of the county electorate voting on the
6 29 proposition, the board of supervisors shall submit the same a
6 30 proposition requiring the approval or defeat of gambling games
6 31 to the county electorate at the general election held in 2002
6 32 and, unless the operation of gambling games is terminated
6 33 earlier as provided in this chapter or chapter 99D, at the
6 34 next general election held at each subsequent eight=year
6 35 interval no sooner than the eighth calendar year following the
7 1 election approving gambling games, unless the operation of
7 2 gambling games is terminated earlier as provided in this
7 3 chapter or chapter 99D. However, if a proposition to operate
7 4 gambling games is approved by a majority of the county
7 5 electorate voting on the proposition in two successive
7 6 elections, no proposition under this paragraph shall
7 7 thereafter be required to authorize the conduct of gambling
7 8 games pursuant to this chapter.
7 9 e. After a referendum has been held which approved or
7 10 defeated a proposal to conduct gambling games on excursion
7 11 gambling boats or which defeated a proposal to conduct
7 12 gambling games at a licensed pari=mutuel racetrack enclosure
7 13 as provided in this section, another referendum on a proposal
7 14 to conduct gambling games on an excursion gambling boat or at
7 15 a licensed pari=mutuel racetrack shall not be held for at
7 16 least eight years until calendar year 2015 and then may only
7 17 be held every eighth calendar year thereafter. However, if
7 18 any proposition to operate gambling games is approved by a
7 19 vote in favor of such proposition equal to at least sixty
7 20 percent of the county electorate vote cast, another referendum
7 21 on a proposal to conduct gambling games shall not be held
7 22 until calendar year 2022 and then may only be held every
7 23 fifteenth calendar year thereafter.
7 24 Sec. 5. EFFECTIVE DATE == RETROACTIVE APPLICABLITY.
7 25 1. The sections of this Act amending section 99F.6,
7 26 subsection 4, take effect January 1, 2008.
7 27 2. The section of this Act amending section 99F.7,
7 28 subsection 11, being deemed of immediate importance, takes
7 29 effect upon enactment and is retroactively applicable to
7 30 elections occurring on and after January 1, 1994.
7 31 EXPLANATION
7 32 This bill concerns horse racing and gambling, relating to
7 33 pari=mutuel wagering, horse racing agreements, and county
7 34 gambling elections.
7 35 Code section 99D.11, subsection 6, is amended to permit the
8 1 simultaneous telecasting of any horse or dog race at a
8 2 licensed facility in this state for the purpose of conducting
8 3 pari=mutuel wagering for an entity licensed in another state
8 4 to conduct pari=mutuel wagering that accepts wagers only in
8 5 those states it is licensed or authorized.
8 6 Code section 99F.6 is amended by the bill as it relates to
8 7 horse racing at a racetrack enclosure licensed to conduct
8 8 gambling games. The section is amended to provide that a
8 9 licensee of a horse racetrack located in Polk county shall be
8 10 allowed to conduct gambling games only if the licensee
8 11 schedules at least 200 live horse racing performances of at
8 12 least four live races each performance day for 50 performance
8 13 days between June 1 and October 1 during a calendar year for
8 14 quarter horses, at least 760 live horse racing performances of
8 15 at least eight live races each performance day for 90
8 16 performance days between April 15 and October 15 during a
8 17 calendar year for thoroughbred horses, and at least nine live
8 18 races each performance day for 20 performance days between
8 19 September 1 and November 15 during a calendar year for
8 20 standardbred horses.
8 21 The bill also provides that agreements on horse racing
8 22 shall include provisions governing horse purses, purses per
8 23 horse breed, the number of racing days, and the number of live
8 24 racing events per day.
8 25 The amended Code section also provides that if a party
8 26 representing thoroughbreds, quarter horses, or standardbred
8 27 horses that race at the racetrack enclosure is unable to reach
8 28 agreement on horse racing, the racing and gaming commission
8 29 shall impose a negotiating timetable to resolve the dispute.
8 30 The bill provides that if the parties fail to agree, then each
8 31 party to the dispute shall select a representative and the two
8 32 representatives shall select a third party, or shall select
8 33 the commission, or a member of the commission, as the third
8 34 party. The bill provides that the parties involved in the
8 35 negotiations, including the commission, shall consider that
9 1 the horse racetrack was built to facilitate the development
9 2 and promotion of Iowa thoroughbred, quarter horse, and
9 3 standardbred horses in this state. The changes to Code
9 4 section 99F.6 take effect January 1, 2008.
9 5 The bill also provides for the requirements relative to
9 6 conducting a referendum to approve or disapprove gambling
9 7 games on an excursion gambling boat or racetrack enclosure in
9 8 a county.
9 9 Code section 99F.7, subsection 11, is amended to provide
9 10 that if a proposition to operate gambling games on an
9 11 excursion boat or racetrack has been approved in two
9 12 successive elections in a county, the proposition to authorize
9 13 gambling games is not thereafter required to be submitted to
9 14 the county electorate. Current law provides that the
9 15 proposition to conduct gambling games shall be resubmitted to
9 16 the county electorate every eight years.
9 17 The bill also provides that if a proposal to operate
9 18 gambling games has been approved, another election shall not
9 19 be held sooner than the eighth calendar year following the
9 20 approval, but in no event prior to calendar year 2015, and
9 21 then, may only be held each eighth year thereafter. In
9 22 addition, the bill provides that if any proposition to conduct
9 23 gambling games in a county passes with 60 percent approval,
9 24 then no referendum shall be held in that county until calendar
9 25 year 2022, and then may only be held each fifteenth calendar
9 26 year thereafter. The provision that the county may hold a
9 27 referendum on the proposition to conduct gambling games upon
9 28 submission of a petition from the county electorate is
9 29 maintained but is made subject to the bill's requirements on
9 30 when elections can be held. Current law provides that no
9 31 election shall be held for eight years after a proposal has
9 32 been defeated but is silent as to when an election can be held
9 33 if the proposal to conduct gambling games has been approved.
9 34 The bill also provides that if gambling games are
9 35 authorized in a county but a subsequent referendum to conduct
10 1 gambling games has been defeated, any license to conduct
10 2 gambling games in that county shall remain valid for one year
10 3 following the defeat of the referendum. Current law provides
10 4 that the license remains valid for nine years following the
10 5 date of the original issue of a license to conduct gambling
10 6 games in that county.
10 7 The changes to Code section 99F.7, subsection 11, take
10 8 effect upon enactment and are retroactively applicable to
10 9 elections occurring on and after January 1, 1994.
10 10 LSB 2340HV 82
10 11 ec:nh/es/88