H.F. _____ Section 1. NEW SECTION . 99D.9A Dog racetrack licensure —— 1 fees. 2 1. Upon at least fourteen days’ written notification to the 3 commission, a licensee authorized to operate a pari-mutuel dog 4 racetrack and to conduct gambling games pursuant to section 5 99F.6 as of January 1, 2014, may, upon agreement to comply with 6 the requirements of this section, discontinue performances of 7 live dog races at the racetrack and maintain a license under 8 this chapter for purposes of permitting pari-mutuel wagering 9 on simultaneously telecast horse races and for purposes of 10 conducting gambling games. 11 2. Upon written notification and discontinuance of live dog 12 racing by a licensee, all of the following shall occur: 13 a. The commission shall determine what portion of the 14 unexpended moneys in the dog racing promotion fund created 15 in section 99D.12 is attributable to the licensee that has 16 discontinued live racing and shall transfer those moneys to the 17 Iowa greyhound pari-mutuel racing retirement fund created in 18 section 99D.9B. 19 b. Any agreement approved by the commission for dog purse 20 supplement payments for live racing that was discontinued by 21 the licensee shall be terminated. 22 c. The commission, the licensee of the pari-mutuel dog 23 racetrack located in Pottawattamie county, and the Iowa 24 greyhound association shall take all action necessary to 25 facilitate the transfer of unexpended funds in an escrow fund 26 created pursuant to a decision in December 1995 regarding 27 dog purse supplements at the racetrack to the commission for 28 deposit in the Iowa greyhound pari-mutuel racing retirement 29 fund created in section 99D.9B. 30 d. The licensee shall pay the live racing cessation fee as 31 provided by this section and shall continue to pay the annual 32 license fee and regulatory fee as a pari-mutuel dog racetrack 33 licensed to operate gambling games pursuant to the requirements 34 of section 99F.4A. 35 -1- LSB 5742YC (5) 85 ec/sc 1/ 8

H.F. _____ 3. For purposes of this section, the live racing cessation 1 fee shall be paid to the commission for deposit in the Iowa 2 greyhound pari-mutuel racing retirement fund created in section 3 99D.9B, which fee shall be determined as follows: 4 a. For the pari-mutuel dog racetrack located in Dubuque 5 county, the payment of two million one hundred forty-two 6 thousand dollars within two weeks of the discontinuance of live 7 racing at the licensee, and two million one hundred forty-three 8 thousand dollars each July 1 for six consecutive calendar years 9 thereafter, commencing on July 1 of the calendar year following 10 the calendar year in which live racing was discontinued. 11 b. For the pari-mutuel dog racetrack located in 12 Pottawattamie county, the payment of seven million eight 13 hundred fifty-two thousand dollars within two weeks of the 14 discontinuance of live racing at the licensee, and seven 15 million eight hundred fifty-eight thousand dollars each July 16 1 for six consecutive calendar years thereafter, commencing 17 on July 1 of the calendar year following the calendar year in 18 which live racing was discontinued. 19 4. A licensee who discontinues live racing pursuant to 20 the requirements of this section shall remain licensed as a 21 pari-mutuel dog racetrack licensed to operate gambling games, 22 shall comply with the requirements of this chapter applicable 23 to a dog racetrack licensee except for those requirements 24 applicable to live racing, and shall be permitted, but not 25 required, to conduct pari-mutuel wagering on simultaneously 26 telecast horse races. 27 Sec. 2. NEW SECTION . 99D.9B Iowa greyhound pari-mutuel 28 racing retirement fund. 29 1. An Iowa greyhound pari-mutuel racing retirement fund is 30 created in the state treasury under the control of the racing 31 and gaming commission. 32 2. The fund shall consist of all of the following: 33 a. Moneys in the dog racing promotion fund created in 34 section 99D.12 that were deposited in those funds from a dog 35 -2- LSB 5742YC (5) 85 ec/sc 2/ 8

H.F. _____ racetrack licensee that discontinues scheduling performances of 1 live dog races pursuant to section 99D.9A. 2 b. Moneys representing greyhound racing escrow funds that 3 are transferred to the fund pursuant to the requirements of 4 section 99D.9A. 5 c. Moneys deposited in the fund from the live racing 6 cessation fee established in section 99D.9A. 7 3. Moneys in the fund shall be distributed by the commission 8 to eligible recipients in an expeditious manner pursuant to 9 rules adopted by the commission. The commission may use moneys 10 in the fund to retain a consultant to assist the commission in 11 the development of a distribution plan to eligible recipients. 12 For purposes of this section, “eligible recipients” means 13 greyhound owners, greyhound breeders, kennel operators, any 14 persons involved in greyhound racing in Iowa, and no-kill 15 animal adoption agencies. 16 4. Section 8.33 does not apply to moneys in the fund. 17 Notwithstanding section 12C.7, subsection 2, interest or 18 earnings on moneys deposited in the fund shall be credited to 19 the fund. 20 5. The commission shall adopt rules to administer this 21 section. The commission may adopt rules on an emergency basis 22 as provided in sections 17A.4 and 17A.5 to administer this 23 section. Any emergency rules adopted in accordance with this 24 section shall also be published as a notice of intended action 25 as provided in section 17A.4. 26 Sec. 3. Section 99D.11, subsection 6, paragraph b, Code 27 2014, is amended to read as follows: 28 b. (1) The commission may authorize the licensee to 29 simultaneously telecast within the racetrack enclosure or 30 licensed premises , for the purpose of pari-mutuel wagering, a 31 horse or dog race licensed by the racing authority of another 32 state. It is the responsibility of each licensee to obtain 33 the consent of appropriate racing officials in other states as 34 required by the federal Interstate Horseracing Act of 1978, 35 -3- LSB 5742YC (5) 85 ec/sc 3/ 8

H.F. _____ 15 U.S.C. § 3001 – 3007, to televise races for the purpose of 1 conducting pari-mutuel wagering. 2 (2) A licensee may also obtain the permission of a person 3 licensed by the commission to conduct horse or dog races in 4 this state to televise races conducted by that person for the 5 purpose of conducting pari-mutuel racing wagering . However, 6 arrangements made by a licensee to televise any race for 7 the purpose of conducting pari-mutuel wagering are subject 8 to the approval of the commission, and the commission shall 9 select the races to be televised. The races selected by the 10 commission shall be the same for all licensees approved by the 11 commission to televise races for the purpose of conducting 12 pari-mutuel wagering. The commission shall not authorize the 13 simultaneous telecast or televising of and a licensee shall 14 not simultaneously telecast or televise any horse or dog race 15 for the purpose of conducting pari-mutuel wagering unless the 16 simultaneous telecast or televising is done at the racetrack 17 of a licensee that schedules no less than sixty performances 18 of nine live races each day of the season or at the licensed 19 premises of a licensee that is not obligated to schedule 20 performances of live races pursuant to section 99D.9A . 21 (3) For purposes of the taxes imposed under this 22 chapter , races televised by a licensee for purposes of 23 pari-mutuel wagering shall be treated as if the races were 24 held at the racetrack or licensed premises of the licensee. 25 Notwithstanding any contrary provision in this chapter , the 26 commission may allow a licensee to adopt the same deductions 27 as those of the pari-mutuel racetrack from which the races are 28 being simultaneously telecast. 29 Sec. 4. Section 99D.15, subsection 4, Code 2014, is amended 30 to read as follows: 31 4. A tax of two percent is imposed on the gross sum 32 wagered by the pari-mutuel method on horse races and dog 33 races which are simultaneously telecast. The tax imposed by 34 this subsection is in lieu of the taxes imposed pursuant to 35 -4- LSB 5742YC (5) 85 ec/sc 4/ 8

H.F. _____ subsection 1 or 3 , but the tax revenue from simulcast horse 1 races shall be distributed as provided in subsection 1 and the 2 tax revenue from simulcast dog races shall be distributed as 3 provided in subsection 3 . 4 Sec. 5. Section 99F.6, subsection 4, paragraph b, Code 2014, 5 is amended to read as follows: 6 b. (1) The commission shall authorize the licensees of 7 pari-mutuel dog racetracks located in Dubuque county and Black 8 Hawk county to conduct gambling games as provided in section 9 99F.4A if the licensees schedule at least one hundred thirty 10 performances of twelve live races each day during a season of 11 twenty-five weeks. For the pari-mutuel dog racetrack located 12 in Pottawattamie county, the commission shall authorize the 13 licensee to conduct gambling games as provided in section 14 99F.4A if the licensee schedules at least two hundred ninety 15 performances of twelve live races each day during a season 16 of fifty weeks. The However, the requirement to schedule 17 performances of live races for purposes of conducting gambling 18 games under this chapter shall not apply to a licensee who is 19 not obligated to schedule performances of live races pursuant 20 to section 99D.9A. 21 (2) If a pari-mutuel dog racetrack is required to schedule 22 performances of live races for purposes of conducting gambling 23 games under this chapter, the commission shall approve an 24 annual contract to be negotiated between the annual recipient 25 of the dog racing promotion fund and each dog racetrack 26 licensee to specify the percentage or amount of gambling 27 game proceeds which shall be dedicated to supplement the 28 purses of live dog races. The parties shall agree to a 29 negotiation timetable to insure no interruption of business 30 activity. If the parties fail to agree, the commission 31 shall impose a timetable. If the two parties cannot reach 32 agreement, each party shall select a representative and the 33 two representatives shall select a third person to assist in 34 negotiating an agreement. The two representatives may select 35 -5- LSB 5742YC (5) 85 ec/sc 5/ 8

H.F. _____ the commission or one of its members to serve as the third 1 party. Alternately, each party shall submit the name of the 2 proposed third person to the commission who shall then select 3 one of the two persons to serve as the third party. All 4 parties to the negotiations, including the commission, shall 5 consider that the dog racetracks were built to facilitate the 6 development and promotion of Iowa greyhound racing dogs in this 7 state and shall negotiate and decide accordingly. 8 Sec. 6. EFFECTIVE UPON ENACTMENT. This Act, being deemed of 9 immediate importance, takes effect upon enactment. 10 EXPLANATION 11 The inclusion of this explanation does not constitute agreement with 12 the explanation’s substance by the members of the general assembly. 13 This bill concerns the conduct of live dog racing at 14 pari-mutuel dog racetracks authorized to conduct gambling 15 games. 16 New Code section 99D.9A allows a licensee authorized to 17 operate a pari-mutuel dog racetrack and to conduct gambling 18 games as of January 1, 2014, to, upon at least 14 days’ written 19 notice to the racing and gaming commission, discontinue 20 performances of live dog races, and to maintain a license under 21 Code chapter 99D for purposes of permitting, but not requiring, 22 pari-mutuel wagering on simultaneously telecast horse races and 23 continuing to allow the licensee to conduct gambling games. 24 The bill provides that upon discontinuing live racing, the 25 racing and gaming commission shall transfer any unexpended 26 moneys in the dog racing promotion fund attributable to the 27 licensee discontinuing live dog racing to an Iowa greyhound 28 pari-mutuel racing retirement fund created in the bill. In 29 addition, upon discontinuing live racing, moneys from an 30 escrow fund for greyhound racing shall be transferred to the 31 new racing retirement fund and any agreement for dog purse 32 supplement payments for live racing shall be terminated. The 33 licensee, upon discontinuing live dog racing, shall commence 34 paying a new live racing cessation fee. The new Code section 35 -6- LSB 5742YC (5) 85 ec/sc 6/ 8

H.F. _____ sets the live racing cessation fee for the pari-mutuel dog 1 racetrack located in Dubuque county at $2.142 million, payable 2 upon discontinuing live racing, and at $2.143 million, payable 3 each July 1 for six calendar years thereafter. For the 4 pari-mutuel dog racetrack located in Pottawattamie county, the 5 annual dog racetrack licensure fee is set at $7.852 million, 6 payable upon discontinuing live racing, and at $7.858 million, 7 payable each July 1 for six calendar years thereafter. The 8 bill provides that a licensee discontinuing live racing shall 9 continue to pay the annual license fee and regulatory fee as a 10 pari-mutuel dog racetrack licensed to conduct gambling games 11 pursuant to the requirements of Code section 99F.4A. 12 New Code section 99D.9B establishes an Iowa greyhound 13 pari-mutuel racing retirement fund under the control of the 14 racing and gaming commission. The fund shall consist of moneys 15 transferred from the dog racing promotion fund, moneys credited 16 to the fund from a dog racetrack licensee that discontinues 17 live dog racing in an amount representing the remaining balance 18 of all dog purse supplement payments, moneys in greyhound 19 racing escrow funds, and moneys from the live racing cessation 20 fee established in new Code section 99D.9A. The bill provides 21 that moneys in the fund shall be distributed to greyhound 22 owners, greyhound breeders, kennel operators, any persons 23 involved in greyhound racing in Iowa in a manner determined by 24 the racing and gaming commission, and no-kill animal adoption 25 agencies. 26 Code section 99D.11(6)(b), concerning pari-mutuel wagering 27 on simultaneous telecasts of horse or dog races, is amended 28 to eliminate simultaneous telecast wagering on dog races and 29 to allow a simultaneous telecast of horse races at a licensee 30 in this state that is not obligated to schedule live dog 31 races pursuant to new Code section 99D.9A. Under current 32 law, simulcast telecasting of races can only be allowed at 33 a racetrack of a licensee that schedules no less than 60 34 performances of nine live races each day of the season. 35 -7- LSB 5742YC (5) 85 ec/sc 7/ 8

H.F. _____ Code section 99D.15 is amended to conform to the provisions 1 in the bill discontinuing simultaneous telecast wagering on dog 2 races. 3 Code section 99F.6(4)(b) is amended to allow the conduct 4 of gambling games at a pari-mutuel dog racetrack that is not 5 obligated to schedule performances of live races pursuant to 6 new Code section 99D.9A. In addition, if a pari-mutuel dog 7 racetrack conducts live dog races, the bill eliminates the 8 requirement that the determination of supplemental dog purses 9 shall consider that the dog racetracks were built to facilitate 10 greyhound racing. 11 The bill takes effect upon enactment. 12 -8- LSB 5742YC (5) 85 ec/sc 8/ 8