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