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 merchandise Merchandise exceeding five fifty
  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 suspended and that person's sales
  2 23 tax permit suspended for 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 establishment and the establishment's
  3  6 sales tax permit shall 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 person owning 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 suspended and that person's
  4 17 sales tax permit suspended for 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