HOUSE FILE 544

BY  ISENHART

A BILL FOR

An Act related to the discontinuance of live dog racing at certain racetracks, providing for a surcharge, making an appropriation, and including effective date provisions.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

   Section 1.  NEW SECTION.  99D.9A  Alternative dog racetrack licensure.
   A licensee authorized to operate a pari-mutuel dog racetrack and to conduct gambling games pursuant to section 99F.6 as of January 1, 2011, shall, if a proposition to discontinue live dog races at the racetrack enclosure is approved by a majority of the county electorate voting on the proposition, discontinue scheduling performances of live dog races at the racetrack and maintain a license under this chapter for purposes of permitting pari-mutuel wagering on simultaneously telecast dog races.
   Sec. 2.  Section 99D.11, subsection 6, paragraph b, Code 2011, 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 that is not obligated to schedule performances of live races pursuant to section 99D.9A.
   (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. 3.  Section 99D.15, subsection 4, Code 2011, is amended to read as follows:
   4.
  a.  A tax of two percent is imposed on the gross sum wagered by the pari-mutuel method on horse races and dog races which are simultaneously telecast. The tax imposed by this subsection is in lieu of the taxes imposed pursuant to subsection 1 or 3, but the tax revenue from simulcast horse races shall be distributed as provided in subsection 1 and the tax revenue from simulcast dog races shall be distributed as provided in subsection 3.
   b.  A dog racetrack licensee who is not obligated to schedule performances of live races pursuant to section 99D.9A shall pay an additional surcharge of eighteen percent on the taxes otherwise imposed pursuant to this subsection for the year in which the discontinuation of racing occurs and for each of the subsequent six years. In the seventh subsequent year, the surcharge shall be twelve percent. In the eighth subsequent year, the surcharge shall be six percent. In the ninth subsequent year, the surcharge shall be three percent. In the tenth and all other subsequent years, there shall be no surcharge. All moneys collected due to the surcharges in this paragraph shall be deposited in the rebuild Iowa infrastructure fund created in section 8.57, subsection 6.
   Sec. 4.  Section 99F.6, subsection 4, paragraph b, Code 2011, is amended to read as follows:
   b.  The commission shall authorize the licensees of pari-mutuel dog racetracks located in Dubuque county and Black Hawk county to conduct gambling games as provided in section 99F.4A if the licensees schedule at least one hundred thirty performances of twelve live races each day during a season of twenty-five weeks. For the pari-mutuel dog racetrack located in Pottawattamie county, the commission shall authorize the licensee to conduct gambling games as provided in section 99F.4A if the licensee schedules at least two hundred ninety performances of twelve live races each day during a season of fifty weeks. The commission shall approve an annual contract to be negotiated between the annual recipient of the dog racing promotion fund and each dog racetrack licensee to specify the percentage or amount of gambling game proceeds which shall be dedicated to supplement the purses of live dog races. The parties shall agree to a negotiation timetable to insure no interruption of business activity. If the parties fail to agree, the commission shall impose a timetable. If the two parties cannot reach agreement, each party shall select a representative and the two representatives shall select a third person to assist in negotiating an agreement. The two representatives may select the commission or one of its members to serve as the third party. Alternately, each party shall submit the name of the proposed third person to the commission who shall then select one of the two persons to serve as the third party. All parties to the negotiations, including the commission, shall consider that the dog racetracks were built to facilitate the development and promotion of Iowa greyhound racing dogs in this state and shall negotiate and decide accordingly.  However, the requirement to schedule performances of live races for purposes of conducting gambling games under this chapter shall not apply to a licensee who is not obligated to schedule performances of live races pursuant to section 99D.9A.
   Sec. 5.  Section 99F.11, Code 2011, is amended by adding the following new subsection:
   NEW SUBSECTION.  4.  A dog racetrack licensee who is not obligated to schedule performances of live races pursuant to section 99D.9A shall pay an additional surcharge of eighteen percent on the tax otherwise imposed pursuant to this section for the year in which the discontinuation of racing occurs and for each of the subsequent six years. In the seventh subsequent year, the surcharge shall be twelve percent. In the eighth subsequent year, the surcharge shall be six percent. In the ninth subsequent year, the surcharge shall be three percent. In the tenth and all other subsequent years, there shall be no surcharge. All moneys collected due to the surcharges in this subsection shall be deposited in the rebuild Iowa infrastructure fund created in section 8.57, subsection 6.
   Sec. 6.  LIVE GREYHOUND RACING —— PROPOSITION.  A licensee conducting live dog racing at a pari-mutuel racetrack pursuant to a license issued under chapter 99D and conducting gambling games under chapter 99F may submit a written demand to the board of supervisors in the county where the pari-mutuel racetrack is located to place a proposition on the ballot for the county electorate voting in the 2012 general election, or in any general or county-wide election thereafter, to discontinue operation of live dog racing. Upon receipt of such written demand, the county board of supervisors shall place the proposition on the ballot, and the licensee shall pay the costs of placing the proposition on the ballot. If the proposition is approved, the licensee shall, no sooner than ninety days following the approval of the proposition at election, discontinue live dog racing at a pari-mutuel racetrack, except to the extent required to comply with existing contracts.
   Sec. 7.  IOWA GREYHOUND RACING TRANSITION FUND.
   1.  A greyhound racing transition fund is created in the state treasury under the control of the racing and gaming commission.
   2.  The fund shall consist of all of the following:
   a.  Moneys in the dog racing promotion fund created in section 99D.12 and the Iowa horse and dog breeders fund created in section 99D.22, that were deposited in those funds from a dog racetrack licensee that discontinues scheduling performances of live dog races pursuant to section 99D.9A.
   b.  Moneys credited to the fund from a dog racetrack licensee that discontinues scheduling performances of live dog races pursuant to section 99D.9A representing the remaining balance of all dog purse supplement payments owed by the licensee pursuant to an agreement approved by the commission.
   c.  Moneys charged and deposited in the fund from a dog racetrack licensee that discontinues scheduling performances of live dog races pursuant to section 99D.9A in an amount determined by the commission to be necessary for the requirements of this section.
   3.  Moneys in the fund shall be disbursed by the racing and gaming commission for the following purposes:
   a.  The humane disposition of all greyhounds bred for racing at the track as determined by the commission.
   b.  Transitional assistance to breeders and kennels, as determined by the commission in consultation with the Iowa greyhound association.
   c.  Transitional assistance, in collaboration with the department of workforce development, for all workers employed by breeders, kennels, or other firms whose principal business is servicing live greyhound racing in Iowa.
   4.  For purposes of this section, transitional assistance to workers shall include all of the following:
   a.  Twenty-six weeks of severance, notice of layoff, or a combination of twenty-six weeks of severance and notice of layoff.
   b.  Reimbursement to the unemployment trust fund for all unemployment insurance benefit payments to workers terminated from employment by breeders, kennels, or other firms whose principal business is servicing live greyhound racing in Iowa.
   c.  Job training and other benefits equivalent to that which the workers would be entitled if they were to qualify for benefits under the federal Trade Assistance and Adjustment Act, as determined by the department of workforce development.
   d.  Amounts sufficient to reimburse the racing and gaming commission and the department of workforce development for administration of the provisions of this section.
   5.  Section 8.33 does not apply to any moneys in the fund. Notwithstanding section 12C.7, subsection 2, interest or earnings on moneys deposited in the fund shall be credited to the fund.
   Sec. 8.  COLLECTIVE BARGAINING AGREEMENTS —— WORKER PROTECTION.  A licensee who is not obligated to schedule performances of live dog races pursuant to section 99D.9A who is a party to a collective bargaining agreement, shall, as a condition of the license, bargain or otherwise reach agreement with the union over the effects of the racing shutdown on the employment status, wages, hours, and working conditions of represented employees, with provisions not less than those specified in this Act.
   Sec. 9.  EFFECTIVE UPON ENACTMENT.  This Act, being deemed of immediate importance, takes effect upon enactment.
EXPLANATION
   This bill relates to the conduct of live pari-mutuel dog racing and voter referendums.
   The bill permits a pari-mutuel dog racing licensee, that is also licensed to conduct gambling games, to submit a written demand to the board of supervisors in the licensee’s county to place a proposition on the ballot for the general election in 2012, or for any subsequent general or county-wide election, to discontinue live dog racing at the racetrack. Upon receiving such a demand, the board must place the proposition on the ballot and the licensee must pay the costs of having the proposition placed on the ballot. If the proposition to discontinue live dog racing is approved, then the licensee shall discontinue live dog racing no sooner than 90 days following approval of the discontinuance, except to the extent necessary to comply with existing contracts. The licensee must, however, maintain a license under chapter 99D for the purposes of permitting pari-mutuel wagering on simultaneously telecast dog races.
   The bill imposes an additional surcharge of 18 percent on the taxes imposed on wagering conducted pursuant to chapter 99F and on pari-mutuel wagering on simultaneously telecast dog races for those licensees who are no longer required to conduct live dog races for the year in which live racing is discontinued and the six subsequent years. The surcharge falls to 12 percent in the seventh subsequent year, 6 percent in the eighth, 3 percent in the ninth, and the surcharge sunsets in the tenth subsequent year. The bill states that moneys collected pursuant to these surcharges are directed to the rebuild Iowa infrastructure fund.
   The bill creates an Iowa greyhound racing transition fund. The fund is created in the state treasury and is controlled by the Iowa racing and gaming commission. The bill requires that certain moneys, collected from the licensee, be transferred into this fund. The bill contains provisions for disbursement of moneys within the fund, including the humane disposition of greyhounds and certain transitional assistance. The requirements of Code sections 8.33 and 12C.7 shall not apply to this fund.
   The bill requires that such a licensee who is subject to a collective bargaining agreement, as a condition of their license, must bargain or reach an agreement with the union regarding the effects of the discontinuance of live dog racing.
   The bill makes additional conforming amendments.
   The bill takes effect upon enactment.