House Study Bill 655 - Introduced HOUSE FILE _____ BY (PROPOSED COMMITTEE ON STATE GOVERNMENT BILL BY CHAIRPERSON COWNIE) A BILL FOR An Act relating to electrical and mechanical amusement devices 1 concerning liability for device distributors and penalties 2 for awarding cash prizes for the use of electrical or 3 mechanical amusement devices. 4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 5 TLSB 6076YC (5) 84 ec/rj

H.F. _____ Section 1. Section 99B.10, Code 2011, is amended by adding 1 the following new subsection: 2 NEW SUBSECTION . 5. Notwithstanding any provision of this 3 section to the contrary, a distributor shall not be liable 4 for a violation of this section unless the distributor, or an 5 employee of the distributor, intentionally violates a provision 6 of this section. 7 Sec. 2. Section 99B.10B, subsection 2, Code 2011, is amended 8 to read as follows: 9 2. a. The department shall revoke a registration issued 10 pursuant to section 99B.10 or 99B.10A , for a period of ten 11 years if a person commits an offense of awarding a cash prize 12 in violation of section 99B.10, subsection 1 , paragraph “b” , 13 pursuant to rules adopted by the department. A person who 14 commits an offense of awarding a cash prize of twenty-five 15 dollars or less in violation of section 99B.10, subsection 1, 16 paragraph “b” , pursuant to rules adopted by the department, 17 shall be issued a warning letter by the department. 18 b. A person who commits, within two years, a second offense 19 of awarding a cash prize of twenty-five dollars or less in 20 violation of section 99B.10, subsection 1, paragraph “b” , or 21 a person who commits an offense of awarding a cash prize of 22 more than twenty-five dollars in violation of section 99B.10, 23 subsection 1, paragraph “b” , pursuant to rules adopted by the 24 department, shall be subject to revocation of the person’s 25 registration and the following: 26 (1) If the person whose registration is revoked under this 27 subsection who paragraph “b” , is a person for which a class “A”, 28 class “B”, class “C”, special class “C”, or class “D” liquor 29 control license has been issued pursuant to chapter 123 , shall 30 have the person’s liquor control license shall be suspended for 31 a period of fourteen days in the same manner as provided in 32 section 123.50, subsection 3 , paragraph “a” . A 33 (2) If the person whose registration is revoked under this 34 subsection who paragraph “b” , is a person for which only a 35 -1- LSB 6076YC (5) 84 ec/rj 1/ 3

H.F. _____ class “B” or class “C” beer permit has been issued pursuant to 1 chapter 123 , shall have the person’s class “B” or class “C” 2 beer permit shall be suspended for a period of fourteen days 3 in the same manner as provided in section 123.50, subsection 4 3 , paragraph “a” . 5 b. (3) If a person owning or employed by an establishment 6 having a class “A”, class “B”, class “C”, special class “C”, 7 or class “D” liquor control license issued pursuant to chapter 8 123 commits an offense of awarding a cash prize in violation of 9 section 99B.10, subsection 1 , paragraph “b” , pursuant to rules 10 adopted by the department as provided in this paragraph “b” , the 11 liquor control license of the establishment shall be suspended 12 for a period of fourteen days in the same manner as provided in 13 section 123.50, subsection 3 , paragraph “a” . 14 (4) If a person owning or employed by an establishment 15 having a class “B” or class “C” beer permit issued pursuant to 16 chapter 123 awards a cash prize in violation of section 99B.10, 17 subsection 1 , paragraph “b” , pursuant to rules adopted by the 18 department commits an offense as provided in this paragraph 19 “b” , the beer permit of the establishment shall be suspended 20 for a period of fourteen days in the same manner as provided in 21 section 123.50, subsection 3 , paragraph “a” . 22 EXPLANATION 23 This bill concerns electrical and mechanical amusement 24 devices. 25 Code section 99B.10 is amended to provide that a distributor 26 of a device shall not be liable for a violation of this Code 27 section relative to amusement devices unless the distributor 28 or an employee of the distributor intentionally violates the 29 Code section. 30 This bill also concerns the penalties applicable to a 31 person who awards a cash prize for the use of an electrical 32 or mechanical amusement device in violation of Code section 33 99B.10(1)(b). The bill provides that if the cash prize awarded 34 in violation of this provision is $25 or less, the penalty 35 -2- LSB 6076YC (5) 84 ec/rj 2/ 3

H.F. _____ shall be a warning letter. Current penalties applicable to any 1 awarding of a cash prize in violation of this provision are 2 amended by the bill and made applicable to a second violation 3 of awarding a cash prize of $25 or less within two years or to 4 a violation of awarding a cash prize of more than $25. The 5 bill eliminates the 10-year revocation of the registration 6 authorizing an electrical or mechanical amusement device 7 penalty but retains the 14-day suspension of an applicable 8 liquor control license or beer permit penalty for a violation 9 of these provisions. 10 -3- LSB 6076YC (5) 84 ec/rj 3/ 3