Senate Study Bill 1142 - Introduced SENATE FILE _____ BY (PROPOSED COMMITTEE ON STATE GOVERNMENT BILL BY CHAIRPERSON DANIELSON) A BILL FOR An Act permitting the limited gambling licensing of individuals 1 as representatives of certain nonprofit organizations. 2 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 3 TLSB 2033XC (3) 84 aw/nh

S.F. _____ Section 1. Section 99B.1, subsection 13, Code 2011, is 1 amended by adding the following new paragraph: 2 NEW PARAGRAPH . c. If the applicant is a volunteer applying 3 to serve as a representative individual limited licensee on 4 behalf of an organization, the individual must state in the 5 application the name of the organization. A volunteer may only 6 apply as a representative individual limited licensee on behalf 7 of an organization if that organization holds an exemption from 8 federal income taxation under section 501(c)(3), 501(c)(4), 9 501(c)(5), 501(c)(6), 501(c)(7), 501(c)(8), 501(c)(10), or 10 501(c)(19) of the Internal Revenue Code as defined in section 11 422.3. The requirements of paragraph “a” shall apply to 12 any representative individual applying on behalf of such an 13 organization and such a representative individual shall only be 14 eligible to hold two limited licenses to conduct raffles within 15 any given calendar year. 16 Sec. 2. Section 99B.7, subsection 1, paragraph d, 17 subparagraph (2), Code 2011, is amended to read as follows: 18 (2) (a) If a raffle licensee holds a statewide raffle 19 license, the licensee may hold not more than eight raffles per 20 calendar year at which real property or one or more merchandise 21 prizes having a combined value of more than ten thousand 22 dollars may be awarded or cash prizes of up to a total of two 23 hundred thousand dollars may be awarded. Each such raffle held 24 under a statewide license shall be held in a separate county. 25 (b) If a representative individual limited licensee holds 26 a limited license to conduct raffles applied for on behalf 27 of an organization as provided in section 99B.1, subsection 28 13, paragraph “c” , the representative licensee may hold not 29 more than one raffle per license applied for and no more than 30 two per calendar year at which real property or one or more 31 merchandise prizes having a combined value of more than ten 32 thousand dollars may be awarded or cash prizes of up to a total 33 of two hundred thousand dollars may be awarded. Each such 34 raffle held under a limited license shall be held in a separate 35 -1- LSB 2033XC (3) 84 aw/nh 1/ 3

S.F. _____ county. 1 Sec. 3. Section 99B.7, subsection 1, paragraph m, 2 subparagraph (1), subparagraph division (a), Code 2011, is 3 amended to read as follows: 4 (a) The organization , or an organization being represented 5 by a volunteer representative individual limited licensee, 6 is exempt from federal income taxes under section 501(c)(3), 7 501(c)(4), 501(c)(5), 501(c)(6), 501(c)(7), 501(c)(8), 8 501(c)(10), or 501(c)(19) of the Internal Revenue Code as 9 defined in section 422.3 , the organization is an agency or 10 instrumentality of the United States government, this state, 11 or a political subdivision of this state, or, in lieu of an 12 exemption from federal income taxes, the organization is a 13 parent-teacher organization or booster club that is recognized 14 as a fund-raiser and supporter for a school district organized 15 pursuant to chapter 274 or for a school within the school 16 district, in a notarized letter signed by the president of the 17 board of directors, the superintendent of the school district, 18 or a principal of a school within that school district. 19 EXPLANATION 20 This bill allows an individual volunteer to apply for a 21 limited license as a representative licensee on behalf of 22 certain nonprofit organizations. 23 The bill allows an individual to apply and serve as a 24 representative limited licensee for a nonprofit organization 25 that is exempt from federal taxation under section 501(c)(3), 26 501(c)(4), 501(c)(5), 501(c)(6), 501(c)(7), 501(c)(8), 27 501(c)(10), or 501(c)(19) of the Internal Revenue Code. The 28 bill requires that such an individual applicant must meet the 29 requirements for all other individual applicants relating to 30 one’s financial standing and reputation, citizenship, and 31 criminal history. 32 The bill states that only one raffle may be held for each 33 limited raffle license granted to a representative individual 34 on behalf of a nonprofit organization. At these raffles, real 35 -2- LSB 2033XC (3) 84 aw/nh 2/ 3

S.F. _____ property or one or more merchandise prizes having a combined 1 value greater than $10,000 may be awarded or cash prizes of 2 up to $200,000 may be awarded. The bill allows an individual 3 licensed on behalf of a nonprofit organization to apply for up 4 to two limited raffle licenses per calendar year. 5 The bill requires that any organization being represented 6 by a volunteer individual licensee must be exempt from federal 7 taxation under section 501(c)(3), 501(c)(4), 501(c)(5), 8 501(c)(6), 501(c)(7), 501(c)(8), 501(c)(10), or 501(c)(19) of 9 the Internal Revenue Code. 10 -3- LSB 2033XC (3) 84 aw/nh 3/ 3