SF 2182 (LSB 6192XS (3) 91)

SENATE FILE 2182

BY  REICHMAN

A BILL FOR

An Act relating to games of queen of hearts conducted by licensed qualified organizations, and making penalties applicable.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  Section 99B.1, subsection 20, Code 2026, is amended to read as follows:
   20.  “Game of chance” means a game whereby the result is determined by chance and the player in order to win completes activities, such as aligning objects or balls in a prescribed pattern or order or makes certain color patterns appear. “Game of chance” specifically includes but is not limited to bingo and queen of hearts. “Game of chance” does not include a slot machine or amusement device.
    Sec. 2.  Section 99B.1, Code 2026, is amended by adding the following new subsection:
   NEW SUBSECTION.  29A.  “Queen of hearts” means a game, whether known as queen of hearts or any other name, which is played over multiple rounds and in which each participant enters a raffle for the chance to choose a concealed card from among the fifty-four cards in a standard deck of playing cards. The winner of the raffle may also be awarded a cash prize. If a participant chooses the card previously designated as the winning card, the participant receives the jackpot and the game ends. If a participant does not choose the card previously designated as the winning card, the participant may receive a cash prize, and a new raffle for the chance to choose a card commences. The standard deck of playing cards is not replenished between raffles.
    Sec. 3.  Section 99B.13, subsection 4, paragraphs a and c, Code 2026, are amended to read as follows:
   a.  A Except as otherwise provided in section 99B.28, a gambling activity shall not be operated on a build-up or pyramid basis.
   c.  Concealed numbers or conversion charts shall not be used in conducting any gambling activity except as part of a game of queen of hearts conducted pursuant to section 99B.28.
    Sec. 4.  Section 99B.15, subsection 1, paragraphs a and d, Code 2026, are amended to read as follows:
   a.  (1)  Only merchandise prizes whose value does not exceed ten thousand dollars may be awarded for games of skill and games of chance. If a prize consists of more than one item, unit, or part, the aggregate value of all items, units, or parts shall not exceed ten thousand dollars.
   (2)  Notwithstanding subparagraph (1), a chance to select a card may be awarded as a prize for a raffle that is part of a game of queen of hearts.
   d.  A cash prize may only be awarded in bingo, queen of hearts, and raffles.
    Sec. 5.  Section 99B.24, subsection 1, paragraphs a, c, and d, Code 2026, are amended to read as follows:
   a.  The winner of a raffle shall not be required to be present to win, except that the winner of a raffle that is part of a game of queen of hearts may be required to be present to win.
   c.  (1)  A cash or merchandise prize may be awarded in a raffle. If a merchandise prize is awarded, the actual retail value of the prize, or if the prize consists of more than one item, unit, or part, the aggregate retail value of all items, units, or parts, shall not exceed the maximum value allowed for that raffle.
   (2)  A chance to select a card may be awarded as a prize for a raffle that is part of a game of queen of hearts.
   d.  Calendar raffles and build-up or pyramid raffles are prohibited except as part of a game of queen of hearts conducted pursuant to section 99B.28.
    Sec. 6.  NEW SECTION.  99B.28  Queen of hearts.
   1.  A licensed qualified organization may conduct queen of hearts as permitted by the applicable license and in accordance with the requirements of this section.
   2.  a.  A cash prize may be awarded to the winner of a raffle conducted as part of a game of queen of hearts, regardless of whether the participant chooses a winning card.
   b.  A cash prize may be awarded to a person who picks a card other than the winning card.
   c.  A cash prize may be awarded as the jackpot for queen of hearts.
   d.  A cash prize awarded for any part of a game of queen of hearts shall not exceed ten thousand dollars.
   3.  Queen of hearts may be conducted on a build-up or pyramid basis.
   4.  A licensed qualified organization may require a participant to be present to win a raffle that is part of a game of queen of hearts, or may allow a participant to choose a card in advance if the participant is not present for the raffle.
   5.  The department shall adopt rules pursuant to chapter 17A to administer this section.
EXPLANATION
The inclusion of this explanation does not constitute agreement with
the explanation’s substance by the members of the general assembly.
   This bill relates to the conduct of the game of queen of hearts by a licensed qualified organization. The bill allows a licensed qualified organization to conduct queen of hearts, defined in the bill as a game in which participants enter a raffle for the chance to win a cash jackpot by choosing a card previously designated as the winning card. If the winning card is not chosen, the game continues with a new raffle. The bill also allows a licensed qualified organization to award cash prizes to participants who win the raffle but do not select the winning card. The bill includes queen of hearts in the definition of “game of chance”.
   The bill allows queen of hearts to be conducted on a build-up or pyramid basis and to use concealed cards. A cash prize awarded as part of a game of queen of hearts shall not exceed $10,000 and a licensed qualified organization may require a participant to be present to win the raffle portion of a game of queen of hearts or may allow a participant to choose a card in advance. The bill requires the department of inspections, appeals, and licensing to adopt rules to administer the bill.
   By operation of law, a person who knowingly violates a provision of the bill or rules adopted to administer the bill is guilty of a serious misdemeanor. A serious misdemeanor is punishable by confinement for no more than one year and a fine of at least $430 but not more than $2,560. A violation may also result in denial, suspension, or revocation of the person’s license.