HSB 696 (LSB 6110HC (2) 83)

HOUSE FILE _____

BY  (PROPOSED COMMITTEE ON AGRICULTURE BILL BY CHAIRPERSON MERTZ)

A BILL FOR

An Act concerning gambling and horse racing, by providing for pari-mutuel wagering, purse agreements for races of standardbred horses at county fairs, and county gambling elections, and including effective date and retroactive applicability provisions.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  Section 99D.11, subsection 6, paragraph b, Code Supplement 2009, is amended to read as follows:
   b.  (1)  The commission may authorize the licensee to simultaneously telecast within the racetrack enclosure, for the purpose of pari-mutuel wagering, a horse or dog race licensed by the racing authority of another state. It is the responsibility of each licensee to obtain the consent of appropriate racing officials in other states as required by the federal Interstate Horseracing Act of 1978, 15 U.S.C. § 3001-3007, to televise races for the purpose of conducting pari-mutuel wagering.
   (2)  A licensee may also obtain the permission of a person licensed by the commission to conduct horse or dog races in this state to televise races conducted by that person for the purpose of conducting pari-mutuel racing. However, arrangements made by a licensee to televise any race for the purpose of conducting pari-mutuel wagering are subject to the approval of the commission, and the commission shall select the races to be televised. The races selected by the commission shall be the same for all licensees approved by the commission to televise races for the purpose of conducting pari-mutuel wagering. The commission shall not authorize the simultaneous telecast or televising of and a licensee shall not simultaneously telecast or televise any horse or dog race for the purpose of conducting pari-mutuel wagering unless the simultaneous telecast or televising is done at the racetrack of a licensee that schedules no less than sixty performances of nine live races each day of the season or is done for an entity licensed in another state to conduct pari-mutuel wagering and such entity accepts wagers only within states in which it is licensed or authorized to accept wagers.
   (3)  For purposes of the taxes imposed under this chapter, races televised by a licensee for purposes of pari-mutuel wagering shall be treated as if the races were held at the racetrack of the licensee. Notwithstanding any contrary provision in this chapter, the commission may allow a licensee to adopt the same deductions as those of the pari-mutuel racetrack from which the races are being simultaneously telecast.
    Sec. 2.  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.
    Sec. 3.  Section 99F.7, subsection 11, Code 2009, is amended to read as follows:
   11.  a.  A license to conduct gambling games on an excursion gambling boat, gambling structure, or at a racetrack enclosure in a county shall be issued only if the county electorate approves the conduct of the gambling games as provided in this subsection. The board of supervisors, upon receipt of a valid petition meeting the requirements of section 331.306, and subject to the requirements of paragraph “e”, shall direct the commissioner of elections to submit to the registered voters of the county a proposition to approve or disapprove the conduct of gambling games on an excursion gambling boat, gambling structure, or at a racetrack enclosure in the county. The proposition shall be submitted at an election held on a date specified in section 39.2, subsection 4, paragraph “a”. To be submitted at a general election, the petition must be received by the board of supervisors at least five working days before the last day for candidates for county offices to file nomination papers for the general election pursuant to section 44.4. If a majority of the county voters voting on the proposition favor the conduct of gambling games, the commission may issue one or more licenses as provided in this chapter. If a majority of the county voters voting on the proposition do not favor the conduct of gambling games, a license to conduct gambling games in the county shall not be issued.
   b.  If licenses a license to conduct gambling games and to operate on an excursion gambling boat are, gambling structure, or at a racetrack enclosure is in effect pursuant to a referendum as set forth in this section and are is subsequently disapproved by a referendum of the county electorate, the licenses license issued by the commission after a referendum approving gambling games on an excursion gambling boats boat, gambling structure, or at a racetrack enclosure shall remain valid and are is subject to renewal for a total of nine years one year from the date of original issue the referendum disapproving the conduct of gambling games in the county unless the commission revokes a license at an earlier date as provided in this chapter.
   c.  If a licensee of a pari-mutuel racetrack who held a valid license issued under chapter 99D as of January 1, 1994, requests a license to operate gambling games as provided in this chapter, the board of supervisors of a county in which the licensee of a pari-mutuel racetrack requests a license to operate gambling games shall submit to the county electorate a proposition to approve or disapprove the operation of gambling games at pari-mutuel racetracks at an election held on a date specified in section 39.2, subsection 4, paragraph “a”. If the operation of gambling games at the pari-mutuel racetrack is not approved by a majority of the county electorate voting on the proposition at the election, the commission shall not issue a license to operate gambling games at the racetrack.
   d.  If the proposition to operate gambling games on an excursion gambling boat or at a racetrack enclosure is approved by a majority of the county electorate voting on the proposition, the board of supervisors shall submit the same a proposition requiring the approval or defeat of gambling games to the county electorate at the general election held in 2002 and, unless the operation of gambling games is terminated earlier as provided in this chapter or chapter 99D, at the next general election held at each subsequent eight-year interval no sooner than the eighth calendar year following the election approving gambling games, unless the operation of gambling games is terminated earlier as provided in this chapter or chapter 99D.  However, if a proposition to operate gambling games is approved by a majority of the county electorate voting on the proposition in two successive elections, a proposition under this paragraph shall not thereafter be required to be submitted to the electorate to authorize the conduct of gambling games pursuant to this chapter.
   e.  After a referendum has been held which approved or defeated a proposal to conduct gambling games on excursion gambling boats or which defeated a proposal to conduct gambling games at a licensed pari-mutuel racetrack enclosure as provided in this section, another referendum on a proposal to conduct gambling games on an excursion gambling boat or at a licensed pari-mutuel racetrack shall not be held for at least eight years until calendar year 2015 and then may only be held every eighth calendar year thereafter.  However, if any proposition to operate gambling games is approved by a vote in favor of such proposition equal to at least sixty percent of the total votes cast for and against the proposition, another referendum on a proposal to conduct gambling games shall not be held until calendar year 2022 and then may only be held every fifteenth calendar year thereafter.
    Sec. 4.  EFFECTIVE UPON ENACTMENT AND RETROACTIVE APPLICABILITY.  The section of this Act amending section 99F.7, subsection 11, being deemed of immediate importance, takes effect upon enactment and is retroactively applicable to elections occurring on and after January 1, 1994.
EXPLANATION
   This bill concerns gambling and horse racing by providing for pari-mutuel wagering, purse agreements for races of standardbred horses at county fairs, and county gambling elections.
   Code section 99D.11(6), concerning pari-mutuel wagering on simultaneous telecasts of horse or dog races, is amended to allow a simultaneous telecast of horse or dog races in this state for pari-mutuel wagering if the telecast is done for an entity licensed in another state to conduct pari-mutuel wagering and the entity only accepts wagers from within states in which it is authorized to accept wagers. Under current law, simulcast telecasting of races can only be allowed at a racetrack of a licensee that schedules no less than 60 performances of nine live races each day of the season.
   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.
   Code section 99F.7(11), concerning the requirements relative to conducting a referendum to approve or disapprove gambling games in a county is amended. The amended Code section provides that if a proposition to operate gambling games on an excursion boat, gambling structure, or racetrack has been approved in two successive elections in a county, the proposition to authorize gambling games is not thereafter required to be submitted to the county electorate. Current law provides that the proposition to conduct gambling games shall be resubmitted to the county electorate every eight years.
   The amended Code section also provides that if a proposal to operate gambling games has been approved, another election shall not be held sooner than the eighth calendar year following the approval, but in no event prior to calendar year 2015, and then, may only be held each eighth year thereafter. In addition, the bill provides that if any proposition to conduct gambling games in a county passes with 60 percent approval, then no referendum shall be held in that county until calendar year 2022, and then may only be held each fifteenth calendar year thereafter. The provision that the county may hold a referendum on the proposition to conduct gambling games upon submission of a petition from the county electorate is maintained but is made subject to the bill’s requirements on when elections can be held. Current law provides that no election shall be held for eight years after a proposal has been defeated but is silent as to when an election can be held if the proposal to conduct gambling games has been approved.
   The amended Code section also provides that if gambling games are authorized in a county but a subsequent referendum to conduct gambling games has been defeated, any license to conduct gambling games in that county shall remain valid for one year following the defeat of the referendum. Current law provides that the license remains valid for nine years following the date of the original issue of a license to conduct gambling games in that county.
   The amendments to Code section 99F.7(11) take effect upon enactment and are retroactively applicable to elections occurring on and after January 1, 1994.