House File 594

                                       HOUSE FILE       
                                       BY  COMMITTEE ON STATE
                                           GOVERNMENT

                                       (SUCCESSOR TO HF 314)


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

                                      A BILL FOR

  1 An Act relating to the registration of electrical and mechanical
  2    amusement devices and the registration of manufacturers and
  3    distributors thereof, establishing fees, making an
  4    appropriation, making penalties applicable, and providing an
  5    effective date.
  6 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
  7 HF 594
  8 ec/es/25

PAG LIN

  1  1    Section 1.  Section 99B.10, Code 2003, is amended by adding
  1  2 the following new subsections:
  1  3    NEW SUBSECTION.  4.  Each electrical and mechanical
  1  4 amusement device in operation or distributed in this state
  1  5 that awards a prize, as provided in this section, where the
  1  6 outcome is not primarily determined by the skill or knowledge
  1  7 of the operator, is registered by the department as provided
  1  8 by this subsection.  For an organization that meets the
  1  9 requirements of section 99B.7, subsection 1, paragraph "m", no
  1 10 more than four, and for all other persons, no more than two
  1 11 electrical and mechanical amusement devices registered as
  1 12 provided by this subsection shall be permitted or offered for
  1 13 use in any single location or premises.  Each person owning an
  1 14 electrical and mechanical amusement device in this state shall
  1 15 obtain a registration tag for each electrical and mechanical
  1 16 amusement device owned that is required to be registered as
  1 17 provided in this subsection.  Upon receipt of an application
  1 18 and a fee of twenty=five dollars for each device required to
  1 19 be registered, the department shall issue an annual
  1 20 registration tag which tag shall be displayed as required by
  1 21 rules adopted by the department.  The application shall be
  1 22 submitted on forms designated by the department and contain
  1 23 the information required by rule of the department.  A
  1 24 registration may be renewed annually upon submission of a
  1 25 registration application and payment of the annual
  1 26 registration fee and compliance with this chapter and the
  1 27 rules adopted pursuant to this chapter.  A person owning or
  1 28 leasing an electrical and mechanical amusement device required
  1 29 to be registered under this subsection shall only own or lease
  1 30 an electrical and mechanical amusement device that is required
  1 31 to be registered that has been purchased from a manufacturer,
  1 32 manufacturer's representative, or distributor registered with
  1 33 the department under section 99B.10A.
  1 34    NEW SUBSECTION.  5.  Any awards given for use of an
  1 35 amusement device shall only be redeemed on the premises where
  2  1 the device is located and only for merchandise sold in the
  2  2 normal course of business for the premises.
  2  3    NEW SUBSECTION.  6.  Any other requirements as determined
  2  4 by the department by rule.  Rules adopted pursuant to this
  2  5 subsection shall be formulated in consultation with affected
  2  6 state agencies and industry and consumer groups.
  2  7    Sec. 2.  NEW SECTION.  99B.10A  MANUFACTURERS AND
  2  8 DISTRIBUTORS OF ELECTRICAL AND MECHANICAL AMUSEMENT DEVICES ==
  2  9 REGISTRATION.
  2 10    A person engaged in business in this state as a
  2 11 manufacturer, manufacturer's representative, or distributor of
  2 12 electrical and mechanical amusement devices required to be
  2 13 registered as provided in section 99B.10, subsection 4, shall
  2 14 register with the department.  Each person who registers with
  2 15 the department under this section shall pay an annual
  2 16 registration fee of two thousand five hundred dollars.
  2 17 Registration shall be submitted on forms designated by the
  2 18 department that shall contain the information required by the
  2 19 department by rule.  The department shall adopt rules
  2 20 providing for the submission of information to the department
  2 21 by a person registered pursuant to this section if information
  2 22 in the initial registration is changed, including
  2 23 discontinuing the business in this state.
  2 24    Sec. 3.  NEW SECTION.  99B.10B  REVOCATION OF REGISTRATION
  2 25 == ELECTRICAL AND MECHANICAL AMUSEMENT DEVICES.
  2 26    The department may revoke a registration issued pursuant to
  2 27 section 99B.10 or 99B.10A, for a period not to exceed two
  2 28 years, for cause, following at least ten days written notice
  2 29 and opportunity for an evidentiary hearing, pursuant to rules
  2 30 adopted by the department.  The rules shall provide that a
  2 31 registration may be revoked if the registrant or agent of the
  2 32 registrant violates, or permits a violation, of section 99B.10
  2 33 or 99B.10A, violates any rule adopted by the department under
  2 34 this chapter that the department determines should warrant
  2 35 revocation of the registration, or engages in any act or
  3  1 omission that would have permitted the department to refuse to
  3  2 issue a registration under section 99B.10 or 99B.10A.
  3  3    Sec. 4.  Section 725.16, Code 2003, is amended to read as
  3  4 follows:
  3  5    725.16  GAMBLING PENALTY.
  3  6    A person who commits an offense declared in chapter 99B to
  3  7 be a misdemeanor shall be guilty of a serious misdemeanor
  3  8 except if an owner of an electrical or mechanical amusement
  3  9 device commits an offense in violation of section 99B.10, the
  3 10 owner is guilty of a class "D" felony.
  3 11    Sec. 5.  ELECTRICAL AND MECHANICAL AMUSEMENT DEVICES ==
  3 12 SPECIAL FUND.  Fees collected by the department of inspections
  3 13 and appeals pursuant to section 99B.10 for the fiscal years
  3 14 beginning July 1, 2003, and July 1, 2004, shall be deposited
  3 15 in a special fund created in the state treasury.  Moneys in
  3 16 the fund are appropriated to the department of inspections and
  3 17 appeals and the department of public safety for administration
  3 18 and enforcement of sections 99B.10 and 99B.10A, including
  3 19 employment of necessary personnel.  The distribution of moneys
  3 20 in the fund to the department of inspections and appeals and
  3 21 the department of public safety shall be pursuant to a written
  3 22 policy agreed upon by the departments.  Notwithstanding
  3 23 section 12C.7, subsection 2, interest or earnings on moneys
  3 24 deposited in the fund shall be credited to the fund.
  3 25    Sec. 6.  DEPARTMENTAL REPORT.  The department of
  3 26 inspections and appeals, in consultation with the department
  3 27 of public safety, shall submit a written report to the general
  3 28 assembly by December 31, 2004, with copies to the committees
  3 29 on government oversight and state government of the senate and
  3 30 house of representatives, that provides details on the
  3 31 implementation of this Act, including fees collected annually,
  3 32 and expenses by all state government agencies for
  3 33 administration, registration issuance, inspection, and other
  3 34 costs related to this Act.  The department shall also include
  3 35 information in the report as to its projections as to whether
  4  1 the fees collected under this Act are properly set to cover
  4  2 future expenses of applicable state agencies under this Act.
  4  3    Sec. 7.  EFFECTIVE DATE.  This Act, being deemed of
  4  4 immediate importance, takes effect upon enactment.
  4  5 HF 594
  4  6 ec/es/25