Senate File 2387 - Reprinted SENATE FILE BY COMMITTEE ON STATE GOVERNMENT (SUCCESSOR TO SF 2240) Passed Senate, Date Passed House, Date Vote: Ayes Nays Vote: Ayes Nays Approved A BILL FOR 1 An Act relating to permissible prizes for use of an electrical 2 and mechanical amusement device and the penalties for awarding 3 an improper cash prize. 4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 5 TLSB 6034SV 82 6 ec/nh/5 PAG LIN 1 1 Section 1. Section 99B.10, subsection 1, paragraphs a and 1 2 b, Code Supplement 2007, are amended to read as follows: 1 3 a.A prize of merchandiseMerchandise exceedingfivefifty 1 4 dollars in value shall not be awarded for use of the device. 1 5 However, a mechanical or amusement device may be designed or 1 6 adapted to award a prize or one or more free games or portions 1 7 of games without payment of additional consideration by the 1 8 participant. 1 9 b. A prize of cash shall not be awarded for use of the 1 10 device, except as provided in paragraph "bb". 1 11 Sec. 2. Section 99B.10, subsection 1, Code Supplement 1 12 2007, is amended by adding the following new paragraph: 1 13 NEW PARAGRAPH. bb. If a prize of merchandise is awarded 1 14 from a ticket valued at no more than five dollars and is 1 15 redeemed for less than the total value of the ticket, cash in 1 16 an amount of less than five dollars that represents the 1 17 difference between the total value of the ticket and the value 1 18 of the redeemed prize may be awarded. 1 19 Sec. 3. Section 99B.10, subsection 1, paragraph f, Code 1 20 Supplement 2007, is amended by adding the following new 1 21 subparagraph: 1 22 NEW SUBPARAGRAPH. (6) A distributor shall not be limited 1 23 in the number of electrical and mechanical amusement devices 1 24 registered by the department under this lettered paragraph 1 25 that the distributor may store for the sole purpose of future 1 26 placement or replacement of existing registered devices. 1 27 Sec. 4. Section 99B.10, subsection 3, unnumbered paragraph 1 28 1, Code Supplement 2007, is amended to read as follows: 1 29 A person who violates any provision of subsection 1, 1 30 paragraph "a", "bb", "e", "g", "h", "i", "j", "k", or "m", 1 31 shall be subject to the following: 1 32 Sec. 5. Section 99B.10, Code Supplement 2007, is amended 1 33 by adding the following new subsection: 1 34 NEW SUBSECTION. 5. Notwithstanding any provision of this 1 35 section to the contrary, a distributor shall not be liable for 2 1 a violation of this section unless the distributor, or an 2 2 employee of the distributor, violates a provision of this 2 3 section. 2 4 Sec. 6. Section 99B.10B, subsection 2, Code Supplement 2 5 2007, is amended to read as follows: 2 6 2. a. The department shall revoke a registration issued 2 7 pursuant to section 99B.10 or 99B.10A, for a period of ten 2 8 years if a person commits an offense of awarding a cash prize 2 9 in violation of section 99B.10, subsection 1, paragraph "b", 2 10 or a second or subsequent offense of violating section 99B.10, 2 11 subsection 1, paragraph "bb", pursuant to rules adopted by the 2 12 department. A person whose registration is revoked under this 2 13 subsection who is a person for which a class "A", class "B", 2 14 class "C", special class "C", or class "D" liquor control 2 15 license has been issued pursuant to chapter 123 shall have the 2 16 person's liquor control license suspended for a period of 2 17 fourteen days in the same manner as provided in section 2 18 123.50, subsection 3, paragraph "a". A person whose 2 19 registration is revoked under this subsection who is a person 2 20 for which only a class "B" or class "C" beer permit has been 2 21 issued pursuant to chapter 123 shall have the person's class 2 22 "B" or class "C" beer permit suspendedand that person's sales 2 23 tax permit suspendedfor a period of fourteen days in the same 2 24 manner as provided in section 123.50, subsection 3, paragraph 2 25 "a". 2 26 b. If a person owning or employed by an establishment 2 27 having a class "A", class "B", class "C", special class "C", 2 28 or class "D" liquor control license issued pursuant to chapter 2 29 123 commits an offense of awarding a cash prize in violation 2 30 of section 99B.10, subsection 1, paragraph "b", or a second or 2 31 subsequent offense of violating section 99B.10, subsection 1, 2 32 paragraph "bb", pursuant to rules adopted by the department, 2 33 the liquor control license of the establishment shall be 2 34 suspended for a period of fourteen days in the same manner as 2 35 provided in section 123.50, subsection 3, paragraph "a". If a 3 1 person owning or employed by an establishment having a class 3 2 "B" or class "C" beer permit issued pursuant to chapter 123 3 3 awards a cash prize in violation of section 99B.10, subsection 3 4 1, paragraph "b", pursuant to rules adopted by the department, 3 5 the beer permit of the establishmentand the establishment's 3 6 sales tax permitshall be suspended for a period of fourteen 3 7 days in the same manner as provided in section 123.50, 3 8 subsection 3, paragraph "a". If a person owning or employed 3 9 by an establishment having a class "B" or class "C" beer 3 10 permit issued pursuant to chapter 123 commits a second or 3 11 subsequent offense of violating section 99B.10, subsection 1, 3 12 paragraph "bb", pursuant to rules adopted by the department, 3 13 the beer permit of the establishment shall be suspended for a 3 14 period of fourteen days in the same manner as provided in 3 15 section 123.50, subsection 3, paragraph "a". 3 16 Sec. 7. Section 99B.10C, subsection 2, Code Supplement 3 17 2007, is amended to read as follows: 3 18 2. A personowning or leasing an electrical and mechanical 3 19 amusement device, or an employee of a person owning or leasing 3 20 an electrical and mechanical amusement device,who knowingly 3 21 allows a person under the age of twenty=one years to 3 22 participate in the operation of an electrical and mechanical 3 23 amusement device, or a person who knowingly participates in 3 24 the operation of an electrical and mechanical amusement device 3 25 with a person under the age of twenty=one years, is guilty of 3 26 a simple misdemeanor. 3 27 Sec. 8. Section 99B.14, subsection 1, Code 2007, is 3 28 amended to read as follows: 3 29 1. The department may deny, suspend, or revoke a license 3 30 if the department finds that an applicant, licensee, or an 3 31 agent of the licensee violated or permitted a violation of a 3 32 provision of this chapter or a departmental rule adopted 3 33 pursuant to chapter 17A, or for any other cause for which the 3 34 director of the department would be or would have been 3 35 justified in refusing to issue a license, or upon the 4 1 conviction of a person of a violation of this chapter or a 4 2 rule adopted under this chapter which occurred on the licensed 4 3 premises. However, the denial, suspension, or revocation of 4 4 one type of gambling license does not require, but may result 4 5 in, the denial, suspension, or revocation of a different type 4 6 of gambling license held by the same licensee. In addition, a 4 7 person whose license is revoked under this section who is a 4 8 person for which a class "A", class "B", class "C", or class 4 9 "D" liquor control license has been issued pursuant to chapter 4 10 123 shall have the person's liquor control license suspended 4 11 for a period of fourteen days in the same manner as provided 4 12 in section 123.50, subsection 3, paragraph "a". In addition, 4 13 a person whose license is revoked under this section who is a 4 14 person for which only a class "B" or class "C" beer permit has 4 15 been issued pursuant to chapter 123 shall have the person's 4 16 class "B" or class "C" beer permit suspendedand that person's 4 17 sales tax permit suspendedfor a period of fourteen days in 4 18 the same manner as provided in section 123.50, subsection 3, 4 19 paragraph "a". 4 20 SF 2387 4 21 ec/nh/cc/26