H.F. 544 Section 1. NEW SECTION . 99D.9A Alternative dog racetrack 1 licensure. 2 A licensee authorized to operate a pari-mutuel dog racetrack 3 and to conduct gambling games pursuant to section 99F.6 as of 4 January 1, 2011, shall, if a proposition to discontinue live 5 dog races at the racetrack enclosure is approved by a majority 6 of the county electorate voting on the proposition, discontinue 7 scheduling performances of live dog races at the racetrack 8 and maintain a license under this chapter for purposes of 9 permitting pari-mutuel wagering on simultaneously telecast dog 10 races. 11 Sec. 2. Section 99D.11, subsection 6, paragraph b, Code 12 2011, is amended to read as follows: 13 b. (1) The commission may authorize the licensee to 14 simultaneously telecast within the racetrack enclosure, for 15 the purpose of pari-mutuel wagering, a horse or dog race 16 licensed by the racing authority of another state. It is 17 the responsibility of each licensee to obtain the consent of 18 appropriate racing officials in other states as required by 19 the federal Interstate Horseracing Act of 1978, 15 U.S.C. 20 § 3001 – 3007, to televise races for the purpose of conducting 21 pari-mutuel wagering. 22 (2) A licensee may also obtain the permission of a person 23 licensed by the commission to conduct horse or dog races 24 in this state to televise races conducted by that person 25 for the purpose of conducting pari-mutuel racing. However, 26 arrangements made by a licensee to televise any race for 27 the purpose of conducting pari-mutuel wagering are subject 28 to the approval of the commission, and the commission shall 29 select the races to be televised. The races selected by the 30 commission shall be the same for all licensees approved by the 31 commission to televise races for the purpose of conducting 32 pari-mutuel wagering. The commission shall not authorize the 33 simultaneous telecast or televising of and a licensee shall 34 not simultaneously telecast or televise any horse or dog race 35 -1- LSB 2567YH (7) 84 aw/nh 1/ 8

H.F. 544 for the purpose of conducting pari-mutuel wagering unless the 1 simultaneous telecast or televising is done at the racetrack of 2 a licensee that schedules no less than sixty performances of 3 nine live races each day of the season or that is not obligated 4 to schedule performances of live races pursuant to section 5 99D.9A . 6 (3) For purposes of the taxes imposed under this chapter , 7 races televised by a licensee for purposes of pari-mutuel 8 wagering shall be treated as if the races were held at the 9 racetrack of the licensee. Notwithstanding any contrary 10 provision in this chapter , the commission may allow a licensee 11 to adopt the same deductions as those of the pari-mutuel 12 racetrack from which the races are being simultaneously 13 telecast. 14 Sec. 3. Section 99D.15, subsection 4, Code 2011, is amended 15 to read as follows: 16 4. a. A tax of two percent is imposed on the gross sum 17 wagered by the pari-mutuel method on horse races and dog 18 races which are simultaneously telecast. The tax imposed by 19 this subsection is in lieu of the taxes imposed pursuant to 20 subsection 1 or 3 , but the tax revenue from simulcast horse 21 races shall be distributed as provided in subsection 1 and the 22 tax revenue from simulcast dog races shall be distributed as 23 provided in subsection 3 . 24 b. A dog racetrack licensee who is not obligated to 25 schedule performances of live races pursuant to section 99D.9A 26 shall pay an additional surcharge of eighteen percent on the 27 taxes otherwise imposed pursuant to this subsection for the 28 year in which the discontinuation of racing occurs and for 29 each of the subsequent six years. In the seventh subsequent 30 year, the surcharge shall be twelve percent. In the eighth 31 subsequent year, the surcharge shall be six percent. In the 32 ninth subsequent year, the surcharge shall be three percent. 33 In the tenth and all other subsequent years, there shall be no 34 surcharge. All moneys collected due to the surcharges in this 35 -2- LSB 2567YH (7) 84 aw/nh 2/ 8

H.F. 544 paragraph shall be deposited in the rebuild Iowa infrastructure 1 fund created in section 8.57, subsection 6. 2 Sec. 4. Section 99F.6, subsection 4, paragraph b, Code 2011, 3 is amended to read as follows: 4 b. The commission shall authorize the licensees of 5 pari-mutuel dog racetracks located in Dubuque county and Black 6 Hawk county to conduct gambling games as provided in section 7 99F.4A if the licensees schedule at least one hundred thirty 8 performances of twelve live races each day during a season of 9 twenty-five weeks. For the pari-mutuel dog racetrack located 10 in Pottawattamie county, the commission shall authorize the 11 licensee to conduct gambling games as provided in section 12 99F.4A if the licensee schedules at least two hundred ninety 13 performances of twelve live races each day during a season of 14 fifty weeks. The commission shall approve an annual contract 15 to be negotiated between the annual recipient of the dog racing 16 promotion fund and each dog racetrack licensee to specify the 17 percentage or amount of gambling game proceeds which shall be 18 dedicated to supplement the purses of live dog races. The 19 parties shall agree to a negotiation timetable to insure no 20 interruption of business activity. If the parties fail to 21 agree, the commission shall impose a timetable. If the two 22 parties cannot reach agreement, each party shall select a 23 representative and the two representatives shall select a 24 third person to assist in negotiating an agreement. The two 25 representatives may select the commission or one of its members 26 to serve as the third party. Alternately, each party shall 27 submit the name of the proposed third person to the commission 28 who shall then select one of the two persons to serve as the 29 third party. All parties to the negotiations, including the 30 commission, shall consider that the dog racetracks were built 31 to facilitate the development and promotion of Iowa greyhound 32 racing dogs in this state and shall negotiate and decide 33 accordingly. However, the requirement to schedule performances 34 of live races for purposes of conducting gambling games under 35 -3- LSB 2567YH (7) 84 aw/nh 3/ 8

H.F. 544 this chapter shall not apply to a licensee who is not obligated 1 to schedule performances of live races pursuant to section 2 99D.9A. 3 Sec. 5. Section 99F.11, Code 2011, is amended by adding the 4 following new subsection: 5 NEW SUBSECTION . 4. A dog racetrack licensee who is not 6 obligated to schedule performances of live races pursuant to 7 section 99D.9A shall pay an additional surcharge of eighteen 8 percent on the tax otherwise imposed pursuant to this section 9 for the year in which the discontinuation of racing occurs 10 and for each of the subsequent six years. In the seventh 11 subsequent year, the surcharge shall be twelve percent. In the 12 eighth subsequent year, the surcharge shall be six percent. 13 In the ninth subsequent year, the surcharge shall be three 14 percent. In the tenth and all other subsequent years, there 15 shall be no surcharge. All moneys collected due to the 16 surcharges in this subsection shall be deposited in the rebuild 17 Iowa infrastructure fund created in section 8.57, subsection 6. 18 Sec. 6. LIVE GREYHOUND RACING —— PROPOSITION. A licensee 19 conducting live dog racing at a pari-mutuel racetrack pursuant 20 to a license issued under chapter 99D and conducting gambling 21 games under chapter 99F may submit a written demand to the 22 board of supervisors in the county where the pari-mutuel 23 racetrack is located to place a proposition on the ballot for 24 the county electorate voting in the 2012 general election, 25 or in any general or county-wide election thereafter, to 26 discontinue operation of live dog racing. Upon receipt of such 27 written demand, the county board of supervisors shall place the 28 proposition on the ballot, and the licensee shall pay the costs 29 of placing the proposition on the ballot. If the proposition 30 is approved, the licensee shall, no sooner than ninety days 31 following the approval of the proposition at election, 32 discontinue live dog racing at a pari-mutuel racetrack, except 33 to the extent required to comply with existing contracts. 34 Sec. 7. IOWA GREYHOUND RACING TRANSITION FUND. 35 -4- LSB 2567YH (7) 84 aw/nh 4/ 8

H.F. 544 1. A greyhound racing transition fund is created in the 1 state treasury under the control of the racing and gaming 2 commission. 3 2. The fund shall consist of all of the following: 4 a. Moneys in the dog racing promotion fund created in 5 section 99D.12 and the Iowa horse and dog breeders fund 6 created in section 99D.22, that were deposited in those funds 7 from a dog racetrack licensee that discontinues scheduling 8 performances of live dog races pursuant to section 99D.9A. 9 b. Moneys credited to the fund from a dog racetrack licensee 10 that discontinues scheduling performances of live dog races 11 pursuant to section 99D.9A representing the remaining balance 12 of all dog purse supplement payments owed by the licensee 13 pursuant to an agreement approved by the commission. 14 c. Moneys charged and deposited in the fund from a dog 15 racetrack licensee that discontinues scheduling performances 16 of live dog races pursuant to section 99D.9A in an amount 17 determined by the commission to be necessary for the 18 requirements of this section. 19 3. Moneys in the fund shall be disbursed by the racing and 20 gaming commission for the following purposes: 21 a. The humane disposition of all greyhounds bred for racing 22 at the track as determined by the commission. 23 b. Transitional assistance to breeders and kennels, as 24 determined by the commission in consultation with the Iowa 25 greyhound association. 26 c. Transitional assistance, in collaboration with the 27 department of workforce development, for all workers employed 28 by breeders, kennels, or other firms whose principal business 29 is servicing live greyhound racing in Iowa. 30 4. For purposes of this section, transitional assistance to 31 workers shall include all of the following: 32 a. Twenty-six weeks of severance, notice of layoff, or 33 a combination of twenty-six weeks of severance and notice of 34 layoff. 35 -5- LSB 2567YH (7) 84 aw/nh 5/ 8

H.F. 544 b. Reimbursement to the unemployment trust fund for all 1 unemployment insurance benefit payments to workers terminated 2 from employment by breeders, kennels, or other firms whose 3 principal business is servicing live greyhound racing in Iowa. 4 c. Job training and other benefits equivalent to that which 5 the workers would be entitled if they were to qualify for 6 benefits under the federal Trade Assistance and Adjustment Act, 7 as determined by the department of workforce development. 8 d. Amounts sufficient to reimburse the racing and gaming 9 commission and the department of workforce development for 10 administration of the provisions of this section. 11 5. Section 8.33 does not apply to any moneys in the fund. 12 Notwithstanding section 12C.7, subsection 2, interest or 13 earnings on moneys deposited in the fund shall be credited to 14 the fund. 15 Sec. 8. COLLECTIVE BARGAINING AGREEMENTS —— WORKER 16 PROTECTION. A licensee who is not obligated to schedule 17 performances of live dog races pursuant to section 99D.9A who 18 is a party to a collective bargaining agreement, shall, as a 19 condition of the license, bargain or otherwise reach agreement 20 with the union over the effects of the racing shutdown on the 21 employment status, wages, hours, and working conditions of 22 represented employees, with provisions not less than those 23 specified in this Act. 24 Sec. 9. EFFECTIVE UPON ENACTMENT. This Act, being deemed of 25 immediate importance, takes effect upon enactment. 26 EXPLANATION 27 This bill relates to the conduct of live pari-mutuel dog 28 racing and voter referendums. 29 The bill permits a pari-mutuel dog racing licensee, that is 30 also licensed to conduct gambling games, to submit a written 31 demand to the board of supervisors in the licensee’s county to 32 place a proposition on the ballot for the general election in 33 2012, or for any subsequent general or county-wide election, to 34 discontinue live dog racing at the racetrack. Upon receiving 35 -6- LSB 2567YH (7) 84 aw/nh 6/ 8

H.F. 544 such a demand, the board must place the proposition on the 1 ballot and the licensee must pay the costs of having the 2 proposition placed on the ballot. If the proposition to 3 discontinue live dog racing is approved, then the licensee 4 shall discontinue live dog racing no sooner than 90 days 5 following approval of the discontinuance, except to the extent 6 necessary to comply with existing contracts. The licensee 7 must, however, maintain a license under chapter 99D for the 8 purposes of permitting pari-mutuel wagering on simultaneously 9 telecast dog races. 10 The bill imposes an additional surcharge of 18 percent on the 11 taxes imposed on wagering conducted pursuant to chapter 99F and 12 on pari-mutuel wagering on simultaneously telecast dog races 13 for those licensees who are no longer required to conduct live 14 dog races for the year in which live racing is discontinued and 15 the six subsequent years. The surcharge falls to 12 percent in 16 the seventh subsequent year, 6 percent in the eighth, 3 percent 17 in the ninth, and the surcharge sunsets in the tenth subsequent 18 year. The bill states that moneys collected pursuant to these 19 surcharges are directed to the rebuild Iowa infrastructure 20 fund. 21 The bill creates an Iowa greyhound racing transition fund. 22 The fund is created in the state treasury and is controlled by 23 the Iowa racing and gaming commission. The bill requires that 24 certain moneys, collected from the licensee, be transferred 25 into this fund. The bill contains provisions for disbursement 26 of moneys within the fund, including the humane disposition 27 of greyhounds and certain transitional assistance. The 28 requirements of Code sections 8.33 and 12C.7 shall not apply 29 to this fund. 30 The bill requires that such a licensee who is subject to 31 a collective bargaining agreement, as a condition of their 32 license, must bargain or reach an agreement with the union 33 regarding the effects of the discontinuance of live dog racing. 34 The bill makes additional conforming amendments. 35 -7- LSB 2567YH (7) 84 aw/nh 7/ 8