House File 646 - Reprinted
HOUSE FILE
BY COMMITTEE ON STATE GOVERNMENT
(SUCCESSOR TO HSB 162)
Passed House, Date Passed Senate, Date
Vote: Ayes Nays Vote: Ayes Nays
Approved
A BILL FOR
1 An Act concerning social and charitable gambling, including the
2 regulation of cash raffles at fairs, prohibiting raffles at
3 annual game nights, establishing a permanent electrical and
4 mechanical amusement devices special fund and providing an
5 appropriation, prohibiting certain electrical or mechanical
6 amusement devices and bona fide contests, and providing for
7 the denial, suspension, and revocation of certain gambling
8 licenses by the department of inspections and appeals.
9 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
10 TLSB 1261HV 81
11 ec/sh/8
PAG LIN
1 1 Section 1. Section 99B.5, subsection 1, paragraphs e and
1 2 g, Code 2005, are amended to read as follows:
1 3 e. Except with respect to an annual raffle as provided in
1 4 paragraph "g", and subsection 3, cash prizes are not awarded
1 5 and merchandise prizes are not repurchased.
1 6 g. The actual retail value of any prize does not exceed
1 7 one thousand dollars. If a prize consists of more than one
1 8 item, unit, or part, the aggregate retail value of all items,
1 9 units, or parts shall not exceed one thousand dollars.
1 10 However, either a fair sponsor or a qualified organization,
1 11 but not both, may hold one raffle per calendar year at which
1 12 prizes having a combined value of more than one thousand
1 13 dollars may be offered. If the prize for the annual raffle is
1 14 cash, the total cash amount awarded shall not exceed two
1 15 hundred thousand dollars. If the prize is merchandise, its
1 16 value shall be determined by the purchase price paid by the
1 17 fair sponsor or qualified organization.
1 18 Sec. 2. Section 99B.5, subsection 3, unnumbered paragraph
1 19 1, Code 2005, is amended to read as follows:
1 20 A licensee under this section may hold one real property
1 21 raffle per calendar year in lieu of the annual raffle
1 22 authorized in subsection 1, paragraph "g", at which the value
1 23 of the real property may exceed one thousand dollars in lieu
1 24 of the or an annual raffle of cash as authorized in subsection
1 25 1, paragraph "g", if the total cash amount awarded is one
1 26 hundred thousand dollars or more, if all of the following
1 27 applicable requirements are met:
1 28 Sec. 3. Section 99B.5, subsection 3, paragraph a, Code
1 29 2005, is amended to read as follows:
1 30 a. The licensee has submitted the special real property or
1 31 cash raffle license application and a fee of one hundred
1 32 dollars to the department, has been issued a license, and
1 33 prominently displays the license at the drawing area of the
1 34 raffle.
1 35 Sec. 4. Section 99B.5, subsection 4, Code 2005, is amended
2 1 to read as follows:
2 2 4. For each real property or cash raffle license issued
2 3 pursuant to subsection 3, the department shall conduct a
2 4 special audit of the raffle to verify compliance with the
2 5 appropriate requirements of this chapter.
2 6 Sec. 5. Section 99B.8, subsection 1, unnumbered paragraph
2 7 1, Code 2005, is amended to read as follows:
2 8 Games of skill, games of chance, and card games and raffles
2 9 lawfully may be conducted during a period of twelve
2 10 consecutive hours once each year by any person. The games or
2 11 raffles may be conducted at any location except one for which
2 12 a license is required pursuant to section 99B.3 or section
2 13 99B.5, but only if all of the following are complied with:
2 14 Sec. 6. Section 99B.10, Code 2005, is amended by adding
2 15 the following new subsection:
2 16 NEW SUBSECTION. 9. An electrical or mechanical amusement
2 17 device required to be registered as provided in this section
2 18 shall not be a gambling device, as defined in section 725.9,
2 19 or a device that plays poker, blackjack, or keno.
2 20 Sec. 7. NEW SECTION. 99B.10D ELECTRICAL AND MECHANICAL
2 21 AMUSEMENT DEVICES == SPECIAL FUND.
2 22 Fees collected by the department pursuant to sections
2 23 99B.10 and 99B.10A shall be deposited in a special fund
2 24 created in the state treasury. Moneys in the fund are
2 25 appropriated to the department of inspections and appeals and
2 26 the department of public safety for administration and
2 27 enforcement of sections 99B.10, 99B.10A, 99B.10B, and 99B.10C,
2 28 including employment of necessary personnel. The distribution
2 29 of moneys in the fund to the department of inspections and
2 30 appeals and the department of public safety shall be pursuant
2 31 to a written policy agreed upon by the departments.
2 32 Notwithstanding section 12C.7, subsection 2, interest or
2 33 earnings on moneys deposited in the fund shall be credited to
2 34 the fund. Notwithstanding section 8.33, moneys remaining in
2 35 the fund at the end of a fiscal year shall not revert to the
3 1 general fund of the state.
3 2 Sec. 8. Section 99B.11, Code 2005, is amended by adding
3 3 the following new subsection:
3 4 NEW SUBSECTION. 3. A poker, blackjack, craps, keno, or
3 5 roulette contest, league, or tournament shall not be
3 6 considered a bona fide contest under this section.
3 7 Sec. 9. Section 99B.14, Code 2005, is amended to read as
3 8 follows:
3 9 99B.14 REVOCATION OF LICENSE DENIAL, SUSPENSION, AND
3 10 REVOCATION.
3 11 1. The department shall may deny, suspend, or revoke a
3 12 license issued pursuant to this chapter if the department
3 13 finds that an applicant, licensee, or an agent of the licensee
3 14 violates or permits violated or permitted a violation of a
3 15 provision of this chapter, or a departmental rule adopted
3 16 pursuant to chapter 17A, or if a for any other cause exists
3 17 for which the director of the department would be or would
3 18 have been justified in refusing to issue a license, or upon
3 19 the conviction of a person of a violation of this chapter or a
3 20 rule adopted under this chapter which occurred on the licensed
3 21 premises. However, the denial, suspension, or revocation of
3 22 one type of gambling license does not require, but may result
3 23 in, the denial, suspension, or revocation of a different type
3 24 of gambling license held by the same licensee.
3 25 Revocation proceedings shall be held only after giving
3 26 notice and an opportunity for hearing to the licensee. Notice
3 27 shall be given at least ten days in advance of the date set
3 28 for hearing. If the department finds cause for revocation,
3 29 the license shall be revoked for a period not to exceed two
3 30 years.
3 31 2. The process for denial, suspension, or revocation of a
3 32 license shall commence by delivering to the applicant or
3 33 licensee by certified mail, return receipt requested, or by
3 34 personal service a notice setting forth the particular reasons
3 35 for such action.
4 1 a. If a written request for a hearing is not received
4 2 within thirty days after the mailing or service of the notice,
4 3 the denial, suspension, or revocation of a license shall
4 4 become effective pending a final determination by the
4 5 department. The determination involved in the notice may be
4 6 affirmed, modified, or set aside by the department in a
4 7 written decision.
4 8 b. If a request for a hearing is timely received by the
4 9 department, the applicant or licensee shall be given an
4 10 opportunity for a prompt and fair hearing before the
4 11 department and the denial, suspension, or revocation shall be
4 12 deemed suspended until the department makes a final
4 13 determination. However, the director may suspend a license
4 14 prior to a hearing if the director finds that the public
4 15 integrity of the licensed activity is compromised or there is
4 16 a risk to public health, safety, or welfare. In addition, at
4 17 any time during or prior to the hearing the department may
4 18 rescind the notice of the denial, suspension, or revocation
4 19 upon being satisfied that the reasons for the denial,
4 20 suspension, or revocation have been or will be removed. On
4 21 the basis of any such hearing, the determination involved in
4 22 the notice may be affirmed, modified, or set aside by the
4 23 department in a written decision.
4 24 3. A copy of the final decision of the department shall be
4 25 sent by certified mail, return receipt requested, or served
4 26 personally upon the applicant or licensee. The applicant or
4 27 licensee may seek judicial review in accordance with the terms
4 28 of the Iowa administrative procedure Act, chapter 17A.
4 29 4. The procedure governing hearings authorized by this
4 30 section shall be in accordance with the rules promulgated by
4 31 the department and chapter 17A.
4 32 5. If the department finds cause for denial of a license,
4 33 the applicant may not reapply for the same license for a
4 34 period of two years. If the department finds cause for
4 35 suspension, the license shall be suspended for a period
5 1 determined by the department. If the department finds cause
5 2 for revocation, the license shall be revoked for a period not
5 3 to exceed two years.
5 4 HF 646
5 5 ec:nh/es/25