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,ordistributor, 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 feeof two thousand 4 9 five hundred dollarsin 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 tosectionsections 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 submitaan 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 thereport7 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