House File 2507 - Introduced HOUSE FILE 2507 BY COMMITTEE ON AGRICULTURE (SUCCESSOR TO HSB 696) A BILL FOR An Act providing for purse agreements for races of standardbred 1 horses at county fairs. 2 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 3 TLSB 6110HV (2) 83 ec/sc

H.F. 2507 Section 1. Section 99F.6, subsection 4, paragraph a, Code 1 2009, is amended to read as follows: 2 a. (1) Before a license is granted, the division of 3 criminal investigation of the department of public safety 4 shall conduct a thorough background investigation of the 5 applicant for a license to operate a gambling game operation 6 on an excursion gambling boat. The applicant shall provide 7 information on a form as required by the division of criminal 8 investigation. 9 (2) A qualified sponsoring organization licensed to operate 10 gambling games under this chapter shall distribute the receipts 11 of all gambling games, less reasonable expenses, charges, 12 taxes, fees, and deductions allowed under this chapter, as 13 winnings to players or participants or shall distribute the 14 receipts for educational, civic, public, charitable, patriotic, 15 or religious uses as defined in section 99B.7, subsection 3, 16 paragraph “b” . However, a licensee to conduct gambling games 17 under this chapter shall, unless an operating agreement for an 18 excursion gambling boat otherwise provides, distribute at least 19 three percent of the adjusted gross receipts for each license 20 year for educational, civic, public, charitable, patriotic, 21 or religious uses as defined in section 99B.7, subsection 3, 22 paragraph “b” . However, if a licensee who is also licensed to 23 conduct pari-mutuel wagering at a horse racetrack has unpaid 24 debt from the pari-mutuel racetrack operations, the first 25 receipts of the gambling games operated within the racetrack 26 enclosure less reasonable operating expenses, taxes, and fees 27 allowed under this chapter shall be first used to pay the 28 annual indebtedness. 29 (3) The commission shall authorize, subject to the debt 30 payments for horse racetracks and the provisions of paragraph 31 “b” for dog racetracks, a licensee who is also licensed to 32 conduct pari-mutuel dog or horse racing to use receipts from 33 gambling games within the racetrack enclosure to supplement 34 purses for races particularly for Iowa-bred horses pursuant to 35 -1- LSB 6110HV (2) 83 ec/sc 1/ 3

H.F. 2507 an agreement which shall be negotiated between the licensee and 1 representatives of the dog or horse owners. For agreements 2 subject to commission approval concerning purses for horse 3 racing beginning on or after January 1, 2006, and ending 4 before January 1, 2021, the agreements shall provide that 5 total annual purses for all horse racing shall be no less than 6 eleven percent of the first two hundred million dollars of net 7 receipts, and six percent of net receipts above two hundred 8 million dollars. In addition, for agreements concerning horse 9 racing between the licensee operating the horse racetrack 10 in Polk county and representatives of standardbred horse 11 owners, the agreement shall include a supplemental amount 12 for standardbred horse races held at county fair racetracks 13 in the state, and the supplemental amount shall be included 14 in determining the total annual purses for all horse racing 15 that is required to be paid as provided by this paragraph 16 “a” . Agreements that are subject to commission approval 17 concerning horse purses for a particular period of time 18 beginning on or after January 1, 2006, and ending before 19 January 1, 2021, shall be jointly submitted to the commission 20 for approval. 21 (4) A qualified sponsoring organization shall not make a 22 contribution to a candidate, political committee, candidate’s 23 committee, state statutory political committee, county 24 statutory political committee, national political party, or 25 fund-raising event as these terms are defined in section 26 68A.102. The membership of the board of directors of a 27 qualified sponsoring organization shall represent a broad 28 interest of the communities. 29 (5) For purposes of this paragraph “a” , “net receipts” means 30 the annual adjusted gross receipts from all gambling games less 31 the annual amount of money pledged by the owner of the facility 32 to fund a project approved to receive vision Iowa funds as of 33 July 1, 2004. 34 EXPLANATION 35 -2- LSB 6110HV (2) 83 ec/sc 2/ 3

H.F. 2507 This bill concerns horse racing by providing for purse 1 agreements for races of standardbred horses at county fairs. 2 Code section 99F.6 is amended to provide that agreements 3 concerning horse racing between the horse racetrack in Polk 4 county and representatives of standardbred horses shall include 5 a supplemental amount for standardbred races held at county 6 fairs which amount shall be included in determining the total 7 amount of horse purses that is required to be paid. 8 -3- LSB 6110HV (2) 83 ec/sc 3/ 3