House File 171 - Introduced HOUSE FILE 171 BY KACENA A BILL FOR An Act authorizing monitor vending machines and providing for 1 distribution of monitor vending machine receipts. 2 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 3 TLSB 1989YH (4) 87 ec/nh

H.F. 171 Section 1. Section 99G.3, subsection 7, Code 2017, is 1 amended to read as follows: 2 7. “Lottery” , “lotteries” , “lottery game” , “lottery games” , 3 or “lottery products” means any game of chance approved by 4 the board and operated pursuant to this chapter and games 5 using mechanical or electronic devices, provided that the 6 authority shall not authorize a monitor vending machine or 7 a player-activated gaming machine that utilizes an internal 8 randomizer to determine winning and nonwinning plays and that 9 upon random internal selection of a winning play dispenses 10 coins, currency, or a ticket, credit, or token to the player 11 that is redeemable for cash or a prize, and excluding gambling 12 or gaming conducted pursuant to chapter 99B , 99D , or 99F . 13 Sec. 2. Section 99G.30A, Code 2017, is amended by striking 14 the section and inserting in lieu thereof the following: 15 99G.30A Monitor vending machines —— restrictions. 16 1. It shall be lawful to sell lottery products or tickets by 17 means of a monitor vending machine pursuant to the requirements 18 of the authority, but only by a retailer in any single location 19 or premises for which a class “A” or class “C” liquor control 20 license has been issued pursuant to chapter 123, in which 21 access to the premises is limited to persons age twenty-one or 22 older. 23 2. The moneys received from the sale of tickets by means 24 of a monitor vending machine shall be deposited in a special 25 account in the lottery fund. Notwithstanding section 99G.39, 26 the net monitor vending machine revenue receipts shall be 27 distributed as follows: 28 a. Twelve and one-half percent of net monitor vending 29 machine revenue receipts shall be deposited in the general fund 30 of the state. 31 b. Twelve and one-half percent of net monitor vending 32 machine revenue receipts generated by monitor vending machines 33 located on the premises of a retailer shall be transferred to 34 that retailer. 35 -1- LSB 1989YH (4) 87 ec/nh 1/ 3

H.F. 171 c. (1) For monitor vending machines of a retailer located 1 in a city, seventy-five percent of the net monitor vending 2 machine revenue receipts generated by the monitor vending 3 machines shall be remitted to the treasurer of the city in 4 which the retailer is located and shall be deposited in the 5 general fund of the city for public safety purposes. 6 (2) For monitor vending machines of a retailer located in a 7 county outside a city, seventy-five percent of the net monitor 8 vending machine revenue receipts generated by the monitor 9 vending machines shall be remitted to the treasurer of the 10 county in which the retailer is located and shall be deposited 11 in the general fund of the county for public safety purposes. 12 3. For purposes of this section, “net monitor vending 13 machine revenue receipts” means the gross receipts received from 14 monitor vending machines less prizes awarded. 15 EXPLANATION 16 The inclusion of this explanation does not constitute agreement with 17 the explanation’s substance by the members of the general assembly. 18 This bill authorizes monitor vending machines in certain 19 locations and provides for the distribution of revenue received 20 from monitor vending machines. 21 The bill eliminates the prohibition on monitor vending 22 machines and eliminates the provision imposing an additional 23 tax on revenues generated from monitor vending machines on or 24 after 45 days following March 20, 2006. 25 The bill provides that monitor vending machines shall only 26 be allowed on a premises with a class “A” or class “C” liquor 27 control license in which access to the premises is limited to 28 persons age 21 or older. 29 The bill further provides that of the moneys received from 30 the sale of tickets by means of a monitor vending machine, less 31 prizes awarded, 12.5 percent of the moneys shall be deposited 32 in the general fund of the state, 12.5 percent of the moneys 33 shall be transferred to the retailer, and 75 percent of the 34 moneys shall be remitted to the county or city where the 35 -2- LSB 1989YH (4) 87 ec/nh 2/ 3

H.F. 171 machine generating the moneys is located for deposit in the 1 general fund of the county or city, as applicable, for public 2 safety purposes. 3 -3- LSB 1989YH (4) 87 ec/nh 3/ 3