House File 2350 - Introduced HOUSE FILE 2350 BY COMMITTEE ON STATE GOVERNMENT (SUCCESSOR TO HSB 585) A BILL FOR An Act concerning gambling game licensure requirements and 1 fees, and including applicability provisions. 2 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 3 TLSB 5990HV (2) 86 ec/nh

H.F. 2350 Section 1. Section 99F.5, subsection 1, Code 2016, is 1 amended to read as follows: 2 1. A qualified sponsoring organization may apply to the 3 commission for a license to conduct gambling games on an 4 excursion gambling boat or gambling structure as provided in 5 this chapter . A person may apply to the commission for a 6 license to operate an excursion gambling boat. An operating 7 agreement entered into on or after May 6, 2004, between 8 a qualified sponsoring organization and an operator of an 9 excursion gambling boat or gambling structure shall provide for 10 a minimum distribution by the qualified sponsoring organization 11 for educational, civic, public, charitable, patriotic, or 12 religious uses as defined in section 99B.1 , that averages at 13 least three percent of the adjusted gross receipts for each 14 license year. If an operating agreement has been entered into 15 between a qualified sponsoring organization and an operator of 16 an excursion gambling boat or gambling structure, the person 17 licensed to operate the excursion gambling boat or gambling 18 structure pursuant to that agreement shall be noted and 19 included as a part of the initial or renewed license issued to 20 the qualified sponsoring organization. The application shall 21 be filed with the administrator of the commission at least 22 ninety days before the first day of the next excursion season 23 as determined by the commission, shall identify the excursion 24 gambling boat upon which gambling games will be authorized, 25 shall specify the exact location where the excursion gambling 26 boat will be docked, and shall be in a form and contain 27 information as the commission prescribes. The minimum capacity 28 of an excursion gambling boat or gambling structure is two 29 hundred fifty persons. 30 Sec. 2. Section 99F.10, subsection 7, Code 2016, is amended 31 to read as follows: 32 7. In addition to any other fees required by this chapter , 33 a person awarded a new license to conduct gambling games 34 pursuant to section 99F.7 on or after January 1, 2004, shall 35 -1- LSB 5990HV (2) 86 ec/nh 1/ 3

H.F. 2350 pay the applicable initial license fee to the commission as 1 provided by this subsection . A person awarded a new license 2 shall pay one-fifth of the applicable initial license fee 3 immediately upon the granting of the license, one-fifth of 4 the applicable initial license fee within one year of the 5 granting of the license, one-fifth of the applicable initial 6 license fee within two years of the granting of the license, 7 one-fifth of the applicable initial license fee within three 8 years of the granting of the license, and the remaining 9 one-fifth of the applicable initial license fee within four 10 years of the granting of the license. However, the license 11 fee provided for in this subsection shall not only apply when 12 a licensed facility is sold and a new license is issued to the 13 purchaser a person for a facility that increases the number of 14 licensed facilities in the county . Fees paid pursuant to this 15 subsection are not refundable to the licensee. For purposes of 16 this subsection , the applicable initial license fee shall be 17 five million dollars if the population of the county where the 18 licensee shall conduct gambling games is fifteen thousand or 19 less based upon the most recent federal decennial census, shall 20 be ten million dollars if the population of the county where 21 the licensee shall conduct gambling games is more than fifteen 22 thousand and less than one hundred thousand based upon the most 23 recent federal decennial census, and shall be twenty million 24 dollars if the population of the county where the licensee 25 shall conduct gambling games is one hundred thousand or more 26 based upon the most recent federal decennial census. Moneys 27 collected by the commission from an initial license fee paid 28 under this subsection shall be deposited in the rebuild Iowa 29 infrastructure fund created in section 8.57 . 30 Sec. 3. APPLICABILITY. This Act applies to initial or 31 renewed licenses issued to a qualified sponsoring organization 32 on or after the effective date of this Act. 33 EXPLANATION 34 The inclusion of this explanation does not constitute agreement with 35 -2- LSB 5990HV (2) 86 ec/nh 2/ 3

H.F. 2350 the explanation’s substance by the members of the general assembly. 1 Code section 99F.5, concerning gambling game licensing, is 2 amended to provide that if an operating agreement has been 3 entered into between a qualified sponsoring organization and an 4 operator of an excursion gambling boat or gambling structure, 5 the person licensed to operate the boat or structure shall be 6 noted and included as a part of the initial or renewed license 7 issued to the qualified sponsoring organization. 8 Code section 99F.10, concerning license fees, is amended to 9 provide that the initial license fee shall be paid only when a 10 new license is issued to a person for a facility that increases 11 the number of licensed facilities in the county. 12 This bill applies to licenses issued or renewed on or after 13 the effective date of the bill. 14 -3- LSB 5990HV (2) 86 ec/nh 3/ 3