S.F. _____ Section 1. NEW SECTION . 99D.9A Dog racetrack licensure —— 1 annual fee. 2 1. A licensee authorized to operate a pari-mutuel dog 3 racetrack and to conduct gambling games pursuant to section 4 99F.6 as of January 1, 2011, may, upon written notification to 5 the commission and agreement to pay the annual dog racetrack 6 licensure fee to the commission as provided in this section, 7 discontinue scheduling performances of live dog races at 8 the racetrack and maintain a license under this chapter for 9 purposes of permitting pari-mutuel wagering on simultaneously 10 telecast dog races. 11 2. For purposes of this section, the annual dog racetrack 12 licensure fee shall be determined and paid as follows: 13 a. For the pari-mutuel dog racetrack located in Dubuque 14 county, the payment of three million dollars each January for 15 seven consecutive calendar years commencing January 2012. 16 b. For the pari-mutuel dog racetrack located in 17 Pottawattamie county, the payment of seven million dollars each 18 January for seven consecutive calendar years commencing January 19 2012. 20 3. The annual dog racetrack licensure fee collected under 21 this section shall be paid to the commission for deposit in the 22 general fund of the state. 23 Sec. 2. Section 99D.11, subsection 6, paragraph b, Code 24 2011, is amended to read as follows: 25 b. (1) The commission may authorize the licensee to 26 simultaneously telecast within the racetrack enclosure, for 27 the purpose of pari-mutuel wagering, a horse or dog race 28 licensed by the racing authority of another state. It is 29 the responsibility of each licensee to obtain the consent of 30 appropriate racing officials in other states as required by 31 the federal Interstate Horseracing Act of 1978, 15 U.S.C. 32 § 3001 – 3007, to televise races for the purpose of conducting 33 pari-mutuel wagering. 34 (2) A licensee may also obtain the permission of a person 35 -1- LSB 1454XC (2) 84 aw/sc 1/ 5

S.F. _____ licensed by the commission to conduct horse or dog races in 1 this state to televise races conducted by that person for the 2 purpose of conducting pari-mutuel racing wagering . However, 3 arrangements made by a licensee to televise any race for 4 the purpose of conducting pari-mutuel wagering are subject 5 to the approval of the commission, and the commission shall 6 select the races to be televised. The races selected by the 7 commission shall be the same for all licensees approved by the 8 commission to televise races for the purpose of conducting 9 pari-mutuel wagering. The commission shall not authorize the 10 simultaneous telecast or televising of and a licensee shall 11 not simultaneously telecast or televise any horse or dog race 12 for the purpose of conducting pari-mutuel wagering unless the 13 simultaneous telecast or televising is done at the racetrack of 14 a licensee that schedules no less than sixty performances of 15 nine live races each day of the season or that is not obligated 16 to schedule performances of live races pursuant to section 17 99D.9A . 18 (3) For purposes of the taxes imposed under this chapter , 19 races televised by a licensee for purposes of pari-mutuel 20 wagering shall be treated as if the races were held at the 21 racetrack of the licensee. Notwithstanding any contrary 22 provision in this chapter , the commission may allow a licensee 23 to adopt the same deductions as those of the pari-mutuel 24 racetrack from which the races are being simultaneously 25 telecast. 26 Sec. 3. Section 99F.6, subsection 4, paragraph b, Code 2011, 27 is amended to read as follows: 28 b. The commission shall authorize the licensees of 29 pari-mutuel dog racetracks located in Dubuque county and Black 30 Hawk county to conduct gambling games as provided in section 31 99F.4A if the licensees schedule at least one hundred thirty 32 performances of twelve live races each day during a season of 33 twenty-five weeks. For the pari-mutuel dog racetrack located 34 in Pottawattamie county, the commission shall authorize the 35 -2- LSB 1454XC (2) 84 aw/sc 2/ 5

S.F. _____ licensee to conduct gambling games as provided in section 1 99F.4A if the licensee schedules at least two hundred ninety 2 performances of twelve live races each day during a season of 3 fifty weeks. The commission shall approve an annual contract 4 to be negotiated between the annual recipient of the dog racing 5 promotion fund and each dog racetrack licensee to specify the 6 percentage or amount of gambling game proceeds which shall be 7 dedicated to supplement the purses of live dog races. The 8 parties shall agree to a negotiation timetable to insure no 9 interruption of business activity. If the parties fail to 10 agree, the commission shall impose a timetable. If the two 11 parties cannot reach agreement, each party shall select a 12 representative and the two representatives shall select a 13 third person to assist in negotiating an agreement. The two 14 representatives may select the commission or one of its members 15 to serve as the third party. Alternately, each party shall 16 submit the name of the proposed third person to the commission 17 who shall then select one of the two persons to serve as the 18 third party. All parties to the negotiations, including the 19 commission, shall consider that the dog racetracks were built 20 to facilitate the development and promotion of Iowa greyhound 21 racing dogs in this state and shall negotiate and decide 22 accordingly. However, the requirement to schedule performances 23 of live races for purposes of conducting gambling games under 24 this chapter shall not apply to a licensee who is not obligated 25 to schedule performances of live races pursuant to section 26 99D.9A. 27 Sec. 4. IOWA GREYHOUND OWNERS AND KENNELS RETIREMENT FUND. 28 1. A greyhound owners and kennels retirement fund is created 29 in the state treasury under the control of the racing and 30 gaming commission. 31 2. The fund shall consist of all of the following: 32 a. Moneys in the dog racing promotion fund created in 33 section 99D.12 and the Iowa horse and dog breeders fund 34 created in section 99D.22, that were deposited in those funds 35 -3- LSB 1454XC (2) 84 aw/sc 3/ 5

S.F. _____ from a dog racetrack licensee that discontinues scheduling 1 performances of live dog races pursuant to section 99D.9A. 2 b. Moneys credited to the fund from a dog racetrack licensee 3 that discontinues scheduling performances of live dog races 4 pursuant to section 99D.9A representing the remaining balance 5 of all dog purse supplement payments owed by the licensee 6 pursuant to an agreement approved by the commission. 7 3. Moneys in the fund shall be disbursed by the racing 8 and gaming commission to registered Iowa greyhound owners and 9 registered Iowa kennels in an expeditious and equitable manner 10 as determined by the racing and gaming commission. 11 4. 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. 5. EFFECTIVE UPON ENACTMENT. This Act, being deemed of 16 immediate importance, takes effect upon enactment. 17 EXPLANATION 18 This bill concerns the conduct of live dog racing at 19 pari-mutuel dog racetracks authorized to conduct gambling 20 games. 21 New Code section 99D.9A allows a licensee authorized to 22 operate a pari-mutuel dog racetrack and to conduct gambling 23 games as of January 1, 2011, to pay an annual dog racetrack 24 licensure fee for a specified period, to discontinue scheduling 25 performances of live dog races, and to maintain a license 26 under Code chapter 99D for purposes of permitting pari-mutuel 27 wagering on simultaneously telecast dog races. The new Code 28 section sets the annual dog racetrack licensure fee for the 29 pari-mutuel dog racetrack located in Dubuque county at $3 30 million, payable each January commencing January 2012 and 31 continuing for seven consecutive calendar years. For the 32 pari-mutuel dog racetrack located in Pottawattamie county, 33 the annual dog racetrack licensure fee is set at $7 million, 34 payable each January commencing January 2012 and continuing for 35 -4- LSB 1454XC (2) 84 aw/sc 4/ 5

S.F. _____ seven consecutive calendar years. 1 Code section 99D.11(6)(b), concerning pari-mutuel wagering 2 on simultaneous telecasts of horse or dog races, is amended 3 to allow a simultaneous telecast of dog races at a licensee 4 in this state that is not obligated to schedule live dog 5 races pursuant to new Code section 99D.9A. Under current 6 law, simulcast telecasting of races can only be allowed at 7 a racetrack of a licensee that schedules no less than 60 8 performances of nine live races each day of the season. 9 Code section 99F.6(4)(b) is amended to allow the conduct 10 of gambling games at a pari-mutuel dog racetrack that is not 11 obligated to schedule performances of live races pursuant to 12 new Code section 99D.9A. 13 The bill also establishes a greyhound owners and kennels 14 retirement fund under the control of the racing and gaming 15 commission. The fund shall consist of moneys in the dog racing 16 promotion fund created in Code section 99D.12 and the Iowa 17 horse and dog breeders fund created in Code section 99D.22 that 18 are deposited in those funds from a dog racetrack licensee that 19 discontinues live dog racing as provided by this bill. In 20 addition, the fund shall also consist of moneys credited to the 21 fund from a dog racetrack licensee that discontinues live dog 22 racing in an amount representing the remaining balance of all 23 dog purse supplement payments owed by the licensee pursuant to 24 an agreement approved by the commission. The bill provides 25 that moneys in the fund shall be disbursed by the commission to 26 registered Iowa greyhound owners and registered Iowa kennels 27 in an expeditious and equitable manner as determined by the 28 commission. 29 The bill takes effect upon enactment. 30 -5- LSB 1454XC (2) 84 aw/sc 5/ 5