Senate File 2330 - Reprinted SENATE FILE BY COMMITTEE ON STATE GOVERNMENT (SUCCESSOR TO SF 2142) Passed Senate, Date Passed House, Date Vote: Ayes Nays Vote: Ayes Nays Approved A BILL FOR 1 An Act prohibiting monitor vending machines and providing an 2 excise tax and an effective date. 3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 4 SF 2330 5 ec/cc/26 PAG LIN 1 1 Section 1. Section 99G.3, subsection 7, Code 2005, is 1 2 amended to read as follows: 1 3 7. "Lottery", "lotteries", "lottery game", "lottery games" 1 4 or "lottery products" means any game of chance approved by the 1 5 board and operated pursuant to this chapter and games using 1 6 mechanical or electronic devices, provided that the authority 1 7 shall not authorize a monitor vending machine or a player= 1 8 activated gaming machine that utilizes an internal randomizer 1 9 to determine winning and nonwinning plays and that upon random 1 10 internal selection of a winning play dispenses coins, 1 11 currency, or a ticket, credit, or token to the player that is 1 12 redeemable for cash or a prize, and excluding gambling or 1 13 gaming conducted pursuant to chapter 99B, 99D, or 99F. 1 14 Sec. 2. Section 99G.3, Code 2005, is amended by adding the 1 15 following new subsection: 1 16 NEW SUBSECTION. 8A. "Monitor vending machine" means a 1 17 machine or other similar electronic device that includes a 1 18 video monitor and audio capabilities that dispenses to a 1 19 purchaser lottery tickets that have been determined to be 1 20 winning or losing tickets by a predetermined pool drawing 1 21 machine prior to the dispensing of the tickets. 1 22 Sec. 3. NEW SECTION. 99G.30A MONITOR VENDING MACHINE == 1 23 TAX IMPOSED. 1 24 1. If revenues are generated from monitor vending machines 1 25 on or after forty=five days following the effective date of 1 26 this Act, then there shall be a monitor vending machine excise 1 27 tax imposed on net monitor vending machine revenue receipts at 1 28 the rate of sixty=five percent. 1 29 2. a. The director of revenue shall administer the 1 30 monitor vending machine excise tax as nearly as possible in 1 31 conjunction with the administration of state sales tax laws. 1 32 The director shall provide appropriate forms or provide 1 33 appropriate entries on the regular state tax forms for 1 34 reporting local sales and services tax liability. 1 35 b. All powers and requirements of the director to 2 1 administer the state sales and use tax law are applicable to 2 2 the administration of the monitor vending machine excise tax, 2 3 including but not limited to the provisions of section 422.25, 2 4 subsection 4, sections 422.30, 422.67, and 422.68, section 2 5 422.69, subsection 1, sections 422.70 to 422.75, section 2 6 423.14, subsection 1 and subsection 2, paragraphs "b" through 2 7 "e", and sections 423.15, 423.23, 423.24, 423.25, 423.31 to 2 8 423.35, 423.37 to 423.42, 423.46, and 423.47. 2 9 c. Frequency of deposits and quarterly reports of the 2 10 monitor vending machine excise tax with the department of 2 11 revenue are governed by the tax provisions in section 423.31. 2 12 Monitor vending machine excise tax collections shall not be 2 13 included in computation of the total tax to determine 2 14 frequency of filing under section 423.31. 2 15 3. For purposes of this section, "net monitor vending 2 16 machine revenue receipts" means the gross receipts received 2 17 from monitor vending machines less prizes awarded. 2 18 Sec. 4. TRANSITION PROVISIONS == MONITOR VENDING MACHINES. 2 19 Notwithstanding any provision of section 99G.3, as amended by 2 20 this Act, to the contrary, a retailer that has acquired a 2 21 monitor vending machine prior to the effective date of this 2 22 Act shall be allowed to offer the machine to the public for 2 23 only forty=five days following the effective date of this Act. 2 24 On or after forty=five days following the effective date of 2 25 this Act, a retailer shall not make a monitor vending machine 2 26 available to the public. 2 27 Sec. 5. EFFECTIVE DATE. This Act, being deemed of 2 28 immediate importance, takes effect upon enactment. 2 29 SF 2330 2 30 ec/cc/26