House File 885 - Introduced



                                       HOUSE FILE       
                                       BY  COMMITTEE ON AGRICULTURE

                                       (SUCCESSOR TO HSB 224)


    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 purse agreements
  2    for races of standardbred horses at county fairs.
  3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
  4 TLSB 1930HV 82
  5 ec/je/5

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.  (1)  Before a license is granted, the division of
  1  4 criminal investigation of the department of public safety
  1  5 shall conduct a thorough background investigation of the
  1  6 applicant for a license to operate a gambling game operation
  1  7 on an excursion gambling boat.  The applicant shall provide
  1  8 information on a form as required by the division of criminal
  1  9 investigation.
  1 10    (2)  A qualified sponsoring organization licensed to
  1 11 operate gambling games under this chapter shall distribute the
  1 12 receipts of all gambling games, less reasonable expenses,
  1 13 charges, taxes, fees, and deductions allowed under this
  1 14 chapter, as winnings to players or participants or shall
  1 15 distribute the receipts for educational, civic, public,
  1 16 charitable, patriotic, or religious uses as defined in section
  1 17 99B.7, subsection 3, paragraph "b".  However, a licensee to
  1 18 conduct gambling games under this chapter shall, unless an
  1 19 operating agreement for an excursion gambling boat otherwise
  1 20 provides, distribute at least three percent of the adjusted
  1 21 gross receipts for each license year for educational, civic,
  1 22 public, charitable, patriotic, or religious uses as defined in
  1 23 section 99B.7, subsection 3, paragraph "b".  However, if a
  1 24 licensee who is also licensed to conduct pari=mutuel wagering
  1 25 at a horse racetrack has unpaid debt from the pari=mutuel
  1 26 racetrack operations, the first receipts of the gambling games
  1 27 operated within the racetrack enclosure less reasonable
  1 28 operating expenses, taxes, and fees allowed under this chapter
  1 29 shall be first used to pay the annual indebtedness.
  1 30    (3)  The commission shall authorize, subject to the debt
  1 31 payments for horse racetracks and the provisions of paragraph
  1 32 "b" for dog racetracks, a licensee who is also licensed to
  1 33 conduct pari=mutuel dog or horse racing to use receipts from
  1 34 gambling games within the racetrack enclosure to supplement
  1 35 purses for races particularly for Iowa=bred horses pursuant to
  2  1 an agreement which shall be negotiated between the licensee
  2  2 and representatives of the dog or horse owners.  For
  2  3 agreements subject to commission approval concerning purses
  2  4 for horse racing beginning on or after January 1, 2006, and
  2  5 ending before January 1, 2021, the agreements shall provide
  2  6 that total annual purses for all horse racing shall be no less
  2  7 than eleven percent of the first two hundred million dollars
  2  8 of net receipts, and six percent of net receipts above two
  2  9 hundred million dollars.  In addition, for agreements
  2 10 concerning horse racing between the licensee operating the
  2 11 horse racetrack in Polk county and representatives of
  2 12 standardbred horse owners, the agreement shall include a
  2 13 supplemental amount for standardbred horse races held at
  2 14 county fair racetracks in the state and the supplemental
  2 15 amount shall be included in determining the total annual
  2 16 purses for all horse racing that is required to be paid as
  2 17 provided by this paragraph "a".  Agreements that are subject
  2 18 to commission approval concerning horse purses for a
  2 19 particular period of time beginning on or after January 1,
  2 20 2006, and ending before January 1, 2021, shall be jointly
  2 21 submitted to the commission for approval.
  2 22    (4)  A qualified sponsoring organization shall not make a
  2 23 contribution to a candidate, political committee, candidate's
  2 24 committee, state statutory political committee, county
  2 25 statutory political committee, national political party, or
  2 26 fund=raising event as these terms are defined in section
  2 27 68A.102.  The membership of the board of directors of a
  2 28 qualified sponsoring organization shall represent a broad
  2 29 interest of the communities.
  2 30    (5)  For purposes of this paragraph "a", "net receipts"
  2 31 means the annual adjusted gross receipts from all gambling
  2 32 games less the annual amount of money pledged by the owner of
  2 33 the facility to fund a project approved to receive vision Iowa
  2 34 funds as of July 1, 2004.
  2 35                           EXPLANATION
  3  1    This bill provides that agreements concerning horse racing
  3  2 between the horse racetrack in Polk county and representatives
  3  3 of standardbred horses shall include a supplemental amount for
  3  4 standardbred races held at county fairs which amount shall be
  3  5 included in determining the total amount of horse purses that
  3  6 is required to be paid.
  3  7 LSB 1930HV 82
  3  8 ec:rj/je/5