House File 2562

                                    HOUSE FILE       
                                    BY  COMMITTEE ON WAYS AND MEANS

                                    (SUCCESSOR TO HF 2501)
                                    (SUCCESSOR TO HF 2114)


    Passed House,  Date               Passed Senate, Date             
    Vote:  Ayes        Nays           Vote:  Ayes        Nays         
                 Approved                            

                                      A BILL FOR

  1 An Act relating to electrical and mechanical amusement devices
  2    that are required to be registered with the department of
  3    inspections and appeals, establishing fees, making an
  4    appropriation, making penalties applicable, and including an
  5    effective and retroactive applicability provision.
  6 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
  7 TLSB 5225HZ 80
  8 ec/gg/14

PAG LIN

  1  1    Section 1.  Section 99B.1, Code Supplement 2003, is amended
  1  2 by adding the following new subsections:
  1  3    NEW SUBSECTION.  11A.  "Distributor" means, for the
  1  4 purposes of sections 99B.10, 99B.10A, and 99B.10B, any person
  1  5 that owns electrical and mechanical amusement devices
  1  6 registered as provided in section 99B.10, subsection 4, that
  1  7 are offered for use at more than a single location or
  1  8 premises.
  1  9    NEW SUBSECTION.  16A.  "Manufacturer" means, for the
  1 10 purposes of sections 99B.10, 99B.10A, and 99B.10B, any person
  1 11 engaged in business in this state who originally produces an
  1 12 electrical and mechanical amusement device required to be
  1 13 registered under section 99B.10, subsection 4, or individual
  1 14 components for use in such a device.
  1 15    NEW SUBSECTION.  16B.  "Manufacturer's representative"
  1 16 means, for the purposes of sections 99B.10, 99B.10A, and
  1 17 99B.10B, any person engaged in business in this state who
  1 18 promotes or sells electrical and mechanical amusement devices
  1 19 required to be registered under section 99B.10, subsection 4,
  1 20 or individual components for use in such devices on behalf of
  1 21 a manufacturer of such devices or components.
  1 22    NEW SUBSECTION.  19A.  "Owner" means, for the purposes of
  1 23 sections 99B.10A and 99B.10B, any person who owns an operable
  1 24 electrical and mechanical amusement device required to be
  1 25 registered under section 99B.10, subsection 4.
  1 26    Sec. 2.  Section 99B.10, subsection 4, Code Supplement
  1 27 2003, is amended to read as follows:
  1 28    4.  Each electrical and mechanical amusement device in
  1 29 operation or distributed in this state that awards a prize, as
  1 30 provided in this section, where the outcome is not primarily
  1 31 determined by the skill or knowledge of the operator, is
  1 32 registered by the department as provided by this subsection
  1 33 and is only located on premises for which a class "A", class
  1 34 "B", class "C", or class "D" liquor control license or class
  1 35 "B" or class "C" beer permit has been issued pursuant to
  2  1 chapter 123.  For an organization that meets the requirements
  2  2 of section 99B.7, subsection 1, paragraph "m", no more than
  2  3 four, and for all other persons, no more than two electrical
  2  4 and mechanical amusement devices registered as provided by
  2  5 this subsection shall be permitted or offered for use in any
  2  6 single location or premises for which a class "A", class "B",
  2  7 class "C", or class "D" liquor control license or class "B" or
  2  8 class "C" beer permit has been issued pursuant to chapter 123.
  2  9 Each person owning an electrical and mechanical amusement
  2 10 device in this state shall obtain a registration tag for each
  2 11 electrical and mechanical amusement device owned that is
  2 12 required to be registered as provided in this subsection.
  2 13 Upon receipt of an application and a fee of twenty=five
  2 14 dollars for each device required to be registered, the
  2 15 department shall issue an annual registration tag which tag
  2 16 shall be displayed as required by rules adopted by the
  2 17 department.  The application shall be submitted on forms
  2 18 designated by the department and contain the information
  2 19 required by rule of the department.  A registration may be
  2 20 renewed annually upon submission of a registration application
  2 21 and payment of the annual registration fee and compliance with
  2 22 this chapter and the rules adopted pursuant to this chapter.
  2 23 However, the number of electrical and mechanical amusement
  2 24 devices registered by the department under this subsection
  2 25 shall not exceed the total number of devices registered by the
  2 26 department as of the effective date of this Act.  In addition,
  2 27 the department shall not initially register an electrical and
  2 28 mechanical amusement device that is required to be registered
  2 29 as provided in this subsection to an owner for a location for
  2 30 which only a class "B" or class "C" beer permit has been
  2 31 issued pursuant to chapter 123 on or after the effective date
  2 32 of this Act.  A person owning or leasing an electrical and
  2 33 mechanical amusement device required to be registered under
  2 34 this subsection shall only own or lease an electrical and
  2 35 mechanical amusement device that is required to be registered
  3  1 that has been purchased from a manufacturer, manufacturer's
  3  2 representative, or distributor registered with the department
  3  3 under section 99B.10A and shall not advertise or promote the
  3  4 availability of the device to the public as anything other
  3  5 than an electrical and mechanical amusement device pursuant to
  3  6 rules adopted by the department.  In addition, an owner at a
  3  7 location for which only a class "B" or class "C" beer permit
  3  8 has been issued pursuant to chapter 123 shall not relocate an
  3  9 amusement device registered as provided in this subsection to
  3 10 a location other than the location of the device on the
  3 11 effective date of this Act, and shall not transfer, assign,
  3 12 sell, or lease an amusement device registered as provided in
  3 13 this subsection to another person for which only a class "B"
  3 14 or class "C" beer permit has been issued pursuant to chapter
  3 15 123 after the effective date of this Act.
  3 16    Sec. 3.  Section 99B.10, Code Supplement 2003, is amended
  3 17 by adding the following new subsections:
  3 18    NEW SUBSECTION.  5A.  Each electrical or mechanical
  3 19 amusement device required to be registered as provided by this
  3 20 section shall, by January 1, 2006, include on the device a
  3 21 counting mechanism which establishes the volume of business of
  3 22 the device.  The department and the department of public
  3 23 safety shall have access to the information provided by the
  3 24 counting mechanism.
  3 25    NEW SUBSECTION.  5B.  Each electrical or mechanical
  3 26 amusement device required to be registered as provided by this
  3 27 section at a location for which only a class "B" or class "C"
  3 28 beer permit has been issued pursuant to chapter 123 shall
  3 29 include on the device a security mechanism which prevents the
  3 30 device from being operated by a person until action is taken
  3 31 by the owner or owner's designee to allow the person to
  3 32 operate the device.
  3 33    Sec. 4.  Section 99B.10A, Code Supplement 2003, is amended
  3 34 to read as follows:
  3 35    99B.10A  MANUFACTURERS AND DISTRIBUTORS OF ELECTRICAL AND
  4  1 MECHANICAL AMUSEMENT DEVICES == REGISTRATION.
  4  2    1.  A person engaged in business in this state as a
  4  3 manufacturer, manufacturer's representative, or distributor,
  4  4 or for=profit owner of electrical and mechanical amusement
  4  5 devices required to be registered as provided in section
  4  6 99B.10, subsection 4, shall register with the department.
  4  7 Each person who registers with the department under this
  4  8 section shall pay an annual registration fee of two thousand
  4  9 five hundred dollars in an amount as provided in subsection 2.
  4 10 Registration shall be submitted on forms designated by the
  4 11 department that shall contain the information required by the
  4 12 department by rule.  The department shall adopt rules
  4 13 providing for the submission of information to the department
  4 14 by a person registered pursuant to this section if information
  4 15 in the initial registration is changed, including
  4 16 discontinuing the business in this state.
  4 17    2.  For purposes of this section, the annual registration
  4 18 fee shall be as follows:
  4 19    a.  For a manufacturer or manufacturer's representative,
  4 20 two thousand five hundred dollars.
  4 21    b.  For a distributor, five thousand dollars.
  4 22    c.  For an owner of no more than two electrical and
  4 23 mechanical amusement devices registered as provided in section
  4 24 99B.10, subsection 4, at a single location or premises that is
  4 25 not an organization that meets the requirements of section
  4 26 99B.7, subsection 1, paragraph "m", two thousand five hundred
  4 27 dollars.
  4 28    Sec. 5.  Section 99B.10B, Code Supplement 2003, is amended
  4 29 to read as follows:
  4 30    99B.10B  REVOCATION OF REGISTRATION == ELECTRICAL AND
  4 31 MECHANICAL AMUSEMENT DEVICES.
  4 32    1.  The department may revoke a registration issued
  4 33 pursuant to section 99B.10 or 99B.10A, for a period not to
  4 34 exceed two years, for cause, following at least ten days'
  4 35 written notice and opportunity for an evidentiary hearing,
  5  1 pursuant to rules adopted by the department.  The rules shall
  5  2 provide that a registration may be revoked if the registrant
  5  3 or agent of the registrant violates, or permits a violation,
  5  4 of section 99B.10 or 99B.10A, violates any rule adopted by the
  5  5 department under this chapter that the department determines
  5  6 should warrant revocation of the registration, or engages in
  5  7 any act or omission that would have permitted the department
  5  8 to refuse to issue a registration under section 99B.10 or
  5  9 99B.10A.
  5 10    2.  The department shall revoke a registration issued
  5 11 pursuant to section 99B.10 or 99B.10A, for a period of ten
  5 12 years following at least ten days' written notice and
  5 13 opportunity for an evidentiary hearing, if a person awards a
  5 14 cash prize in violation of section 99B.10, subsection 1,
  5 15 pursuant to rules adopted by the department.  A person whose
  5 16 registration is revoked under this subsection who is a person
  5 17 for which a class "A", class "B", class "C", or class "D"
  5 18 liquor control license has been issued pursuant to chapter 123
  5 19 shall have the person's liquor control license suspended for a
  5 20 period of fourteen days in the same manner as provided in
  5 21 section 123.50, subsection 3, paragraph "a".  In addition, a
  5 22 person whose registration is revoked under this subsection who
  5 23 is a person for which only a class "B" or class "C" beer
  5 24 permit has been issued pursuant to chapter 123 shall have the
  5 25 person's class "B" or class "C" beer permit suspended and that
  5 26 person's sales tax permit suspended for a period of fourteen
  5 27 days in the same manner as provided in section 123.50,
  5 28 subsection 3, paragraph "a".
  5 29    Sec. 6.  NEW SECTION.  99B.10C  ELECTRICAL AND MECHANICAL
  5 30 AMUSEMENT DEVICES == PERSONS UNDER TWENTY=ONE == PENALTIES.
  5 31    1.  A person under the age of twenty=one years shall not
  5 32 participate in the operation of an electrical and mechanical
  5 33 amusement device.  A person who violates this subsection
  5 34 commits a scheduled violation under section 805.8C, subsection
  5 35 4.
  6  1    2.  A person owning or leasing an electrical and mechanical
  6  2 amusement device who knowingly allows a person under the age
  6  3 of twenty=one years to participate in the operation of an
  6  4 electrical and mechanical amusement device, or a person who
  6  5 knowingly participates in the operation of an electrical and
  6  6 mechanical amusement device, with a person under the age of
  6  7 twenty=one years is guilty of a simple misdemeanor.
  6  8    3.  For purposes of this section, an electrical and
  6  9 mechanical amusement device means an electrical and mechanical
  6 10 amusement device required to be registered as provided in
  6 11 section 99B.10, subsection 4.
  6 12    Sec. 7.  Section 805.8C, Code 2003, is amended by adding
  6 13 the following new subsection:
  6 14    NEW SUBSECTION.  4.  ELECTRICAL AND MECHANICAL AMUSEMENT
  6 15 DEVICE VIOLATIONS.  For violations of legal age for operating
  6 16 an electrical and mechanical amusement device required to be
  6 17 registered as provided in section 99B.10, subsection 4,
  6 18 pursuant to section 99B.10C, subsection 1, the scheduled fine
  6 19 is two hundred fifty dollars.  Failure to pay the fine by a
  6 20 person under the age of eighteen shall not result in the
  6 21 person being detained in a secure facility.
  6 22    Sec. 8.  2003 Iowa Acts, chapter 147, section 5, is amended
  6 23 to read as follows:
  6 24    SEC. 5.  ELECTRICAL AND MECHANICAL AMUSEMENT DEVICES ==
  6 25 SPECIAL FUND.  Fees collected by the department of inspections
  6 26 and appeals pursuant to section sections 99B.10 and 99B.10A
  6 27 for the fiscal years beginning July 1, 2003, and July 1, 2004,
  6 28 shall be deposited in a special fund created in the state
  6 29 treasury.  Moneys in the fund are appropriated to the
  6 30 department of inspections and appeals and the department of
  6 31 public safety for administration and enforcement of sections
  6 32 99B.10 and 99B.10A, including employment of necessary
  6 33 personnel.  The distribution of moneys in the fund to the
  6 34 department of inspections and appeals and the department of
  6 35 public safety shall be pursuant to a written policy agreed
  7  1 upon by the departments.  Notwithstanding section 12C.7,
  7  2 subsection 2, interest or earnings on moneys deposited in the
  7  3 fund shall be credited to the fund.
  7  4    Sec. 9.  2003 Iowa Acts, chapter 147, section 6, is amended
  7  5 to read as follows:
  7  6    SEC. 6.  DEPARTMENTAL REPORT.  The department of
  7  7 inspections and appeals, in consultation with the department
  7  8 of public safety, shall submit a an interim written report to
  7  9 the general assembly by December 31, 2004, and a final written
  7 10 report to the general assembly by September 1, 2005, with
  7 11 copies to the committees on government oversight and state
  7 12 government of the senate and house of representatives, that
  7 13 provides details on the implementation of this Act, including
  7 14 fees collected annually, and expenses by all state government
  7 15 agencies for administration, registration issuance,
  7 16 inspection, and other costs related to this Act.  The
  7 17 department shall also include information in the report
  7 18 reports as to its projections as to whether the fees collected
  7 19 under this Act are properly set to cover future expenses of
  7 20 applicable state agencies under this Act.
  7 21    Sec. 10.  ELECTRICAL AND MECHANICAL AMUSEMENT DEVICES ==
  7 22 NONLIQUOR CONTROL LICENSEES == SPECIAL PROVISIONS.
  7 23    1.  Notwithstanding any provision of section 99B.10,
  7 24 subsection 4, as amended by this Act, to the contrary, an
  7 25 owner of an electrical and mechanical amusement device that
  7 26 has been registered pursuant to section 99B.10, subsection 4,
  7 27 prior to the effective date of this Act that is offered for
  7 28 use by the public at a location for which a class "A", class
  7 29 "B", class "C", or class "D" liquor control license or class
  7 30 "B" or class "C" beer permit has not been issued pursuant to
  7 31 chapter 123 shall be allowed to offer the device for use by
  7 32 the public until July 1, 2005.
  7 33    2.  On and after July 1, 2005, an owner of an electrical
  7 34 and mechanical amusement device as described in subsection 1
  7 35 shall not offer the device for use by the public.  However,
  8  1 the owner of a device shall be permitted to sell the device to
  8  2 a distributor, as defined in section 99B.1, as amended by this
  8  3 Act, or to a person authorized to offer the device to the
  8  4 public pursuant to section 99B.10, subsection 4, as amended by
  8  5 this Act for which a class "A", class "B", class "C", or class
  8  6 "D" liquor control license or class "B" or class "C" beer
  8  7 permit has been issued pursuant to chapter 123.
  8  8    Sec. 11.  EFFECTIVE DATE == RETROACTIVE APPLICABILITY.
  8  9    1.  This Act, being deemed of immediate importance, takes
  8 10 effect upon enactment.
  8 11    2.  The section of this Act amending 2003 Iowa Acts,
  8 12 chapter 147, section 5, is retroactively applicable to July 1,
  8 13 2003, and is applicable on and after that date.
  8 14 HF 2562
  8 15 ec/es/25