HF 2507 (LSB 6110HV (2) 83)

HOUSE FILE 2507

BY  COMMITTEE ON AGRICULTURE

(SUCCESSOR TO HSB 696)

A BILL FOR

An Act providing for purse agreements for races of standardbred horses at county fairs.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  Section 99F.6, subsection 4, paragraph a, Code 2009, is amended to read as follows:
   a.  (1)  Before a license is granted, the division of criminal investigation of the department of public safety shall conduct a thorough background investigation of the applicant for a license to operate a gambling game operation on an excursion gambling boat. The applicant shall provide information on a form as required by the division of criminal investigation.
   (2)  A qualified sponsoring organization licensed to operate gambling games under this chapter shall distribute the receipts of all gambling games, less reasonable expenses, charges, taxes, fees, and deductions allowed under this chapter, as winnings to players or participants or shall distribute the receipts for educational, civic, public, charitable, patriotic, or religious uses as defined in section 99B.7, subsection 3, paragraph “b”. However, a licensee to conduct gambling games under this chapter shall, unless an operating agreement for an excursion gambling boat otherwise provides, distribute at least three percent of the adjusted gross receipts for each license year for educational, civic, public, charitable, patriotic, or religious uses as defined in section 99B.7, subsection 3, paragraph “b”. However, if a licensee who is also licensed to conduct pari-mutuel wagering at a horse racetrack has unpaid debt from the pari-mutuel racetrack operations, the first receipts of the gambling games operated within the racetrack enclosure less reasonable operating expenses, taxes, and fees allowed under this chapter shall be first used to pay the annual indebtedness.
   (3)  The commission shall authorize, subject to the debt payments for horse racetracks and the provisions of paragraph “b” for dog racetracks, a licensee who is also licensed to conduct pari-mutuel dog or horse racing to use receipts from gambling games within the racetrack enclosure to supplement purses for races particularly for Iowa-bred horses pursuant to an agreement which shall be negotiated between the licensee and representatives of the dog or horse owners. For agreements subject to commission approval concerning purses for horse racing beginning on or after January 1, 2006, and ending before January 1, 2021, the agreements shall provide that total annual purses for all horse racing shall be no less than eleven percent of the first two hundred million dollars of net receipts, and six percent of net receipts above two hundred million dollars.  In addition, for agreements concerning horse racing between the licensee operating the horse racetrack in Polk county and representatives of standardbred horse owners, the agreement shall include a supplemental amount for standardbred horse races held at county fair racetracks in the state, and the supplemental amount shall be included in determining the total annual purses for all horse racing that is required to be paid as provided by this paragraph “a”. Agreements that are subject to commission approval concerning horse purses for a particular period of time beginning on or after January 1, 2006, and ending before January 1, 2021, shall be jointly submitted to the commission for approval.
   (4)  A qualified sponsoring organization shall not make a contribution to a candidate, political committee, candidate’s committee, state statutory political committee, county statutory political committee, national political party, or fund-raising event as these terms are defined in section 68A.102. The membership of the board of directors of a qualified sponsoring organization shall represent a broad interest of the communities.
   (5)  For purposes of this paragraph “a”, “net receipts” means the annual adjusted gross receipts from all gambling games less the annual amount of money pledged by the owner of the facility to fund a project approved to receive vision Iowa funds as of July 1, 2004.
EXPLANATION
   This bill concerns horse racing by providing for purse agreements for races of standardbred horses at county fairs.
   Code section 99F.6 is amended to provide that agreements concerning horse racing between the horse racetrack in Polk county and representatives of standardbred horses shall include a supplemental amount for standardbred races held at county fairs which amount shall be included in determining the total amount of horse purses that is required to be paid.