Bill Text: IA HF613 | 2017-2018 | 87th General Assembly | Introduced
Bill Title: A bill for an act relating to fantasy sports contests, providing for a tax and a fee, making penalties applicable, and including implementation provisions. (Formerly HSB 52.)
Spectrum: Committee Bill
Status: (Introduced - Dead) 2018-01-17 - Subcommittee: Windschitl, Forbes, Kaufmann, Kearns and Mohr, G.. H.J. 111. [HF613 Detail]
Download: Iowa-2017-HF613-Introduced.html
House File 613 - Introduced HOUSE FILE BY COMMITTEE ON WAYS AND MEANS (SUCCESSOR TO HSB 52) A BILL FOR 1 An Act relating to fantasy sports contests, providing for a 2 tax and a fee, making penalties applicable, and including 3 implementation provisions. 4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: TLSB 1635HV (5) 87 ec/nh PAG LIN 1 1 Section 1. NEW SECTION. 99E.1 Definitions. 1 2 As used in this chapter, unless the context otherwise 1 3 requires: 1 4 1. "Applicant" means an internet fantasy sports contest 1 5 service provider applying for a license to conduct internet 1 6 fantasy sports contests under this chapter. 1 7 2. "Commission" means the state racing and gaming commission 1 8 created under section 99D.5. 1 9 3. "Fantasy sports contest" includes any fantasy or 1 10 simulated game or contest in which the fantasy sports contest 1 11 operator is not a participant in the game or contest, the value 1 12 of all prizes and awards offered to winning participants are 1 13 established and made known to the participants in advance 1 14 of the contest, all winning outcomes reflect the relative 1 15 knowledge and skill of the participants and shall be determined 1 16 by accumulated statistical results of the performance of 1 17 individuals, including athletes in the case of sporting events, 1 18 and no winning outcome is based on the score, point spread, or 1 19 any performance or performances of any single actual team or 1 20 solely on any single performance of an individual athlete or 1 21 player in any single actual event. 1 22 4. "Internet fantasy sports contest" means a method of 1 23 entering a fantasy sports contest by which a person may 1 24 establish an account with an internet fantasy sports contest 1 25 service provider, deposit money into the account, and use 1 26 the account balance for entering a fantasy sports contest by 1 27 utilizing electronic communication. 1 28 5. "Internet fantasy sports contest adjusted revenues" means, 1 29 for each internet fantasy sports contest, the amount equal to 1 30 the total charges and fees collected from all participants 1 31 entering the internet fantasy sports contest less winnings paid 1 32 to participants in the contest, multiplied by the location 1 33 percentage. 1 34 6. "Internet fantasy sports contest player" means a person 1 35 who is at least twenty=one years of age and participates in an 2 1 internet fantasy sports contest operated by an internet fantasy 2 2 sports contest service provider. 2 3 7. "Internet fantasy sports contest service provider" means 2 4 a person, including a licensee under chapter 99D or 99F, who 2 5 conducts an internet fantasy sports contest as authorized by 2 6 this chapter. 2 7 8. "Location percentage" means, for each internet fantasy 2 8 sports contest, the percentage, rounded to the nearest tenth of 2 9 a percent, equal to the total charges and fees collected from 2 10 all internet fantasy sports contest players located in this 2 11 state divided by the total charges and fees collected from all 2 12 participants in the internet fantasy sports contest. 2 13 Sec. 2. NEW SECTION. 99E.2 Internet fantasy sports contests 2 14 authorized. 2 15 The system of entering an internet fantasy sports contest as 2 16 provided by this chapter is legal when conducted by a licensed 2 17 internet fantasy sports contest service provider as provided in 2 18 this chapter. 2 19 Sec. 3. NEW SECTION. 99E.3 Commission ==== powers. 2 20 1. The commission shall have full jurisdiction over and 2 21 shall supervise internet fantasy sports contests and internet 2 22 fantasy sports contest service providers as governed by this 2 23 chapter. 2 24 2. The commission shall have the following powers and shall 2 25 adopt rules pursuant to chapter 17A to administer and implement 2 26 this chapter: 2 27 a. To review and investigate applicants and determine the 2 28 eligibility of applicants for a license to conduct internet 2 29 fantasy sports contests, pursuant to rules adopted by the 2 30 commission. 2 31 b. To license and regulate internet fantasy sports contest 2 32 service providers subject to the requirements of this chapter. 2 33 c. To provide for the prevention of practices detrimental to 2 34 the public and to provide for the best interests of internet 2 35 fantasy sports contests. 3 1 d. To investigate alleged violations of this chapter 3 2 or the commission rules, orders, or final decisions and to 3 3 take appropriate disciplinary action against a licensee, or 3 4 institute appropriate legal action for enforcement, or both. 3 5 Information gathered during an investigation is confidential 3 6 during the pendency of the investigation. 3 7 e. To assess fines and revoke or suspend licenses and to 3 8 impose penalties for violations of this chapter. 3 9 f. To require, beginning July 1, 2019, licensees to 3 10 establish a process with the state for licensees to have 3 11 electronic access to names and social security numbers of 3 12 debtors of claimant agencies through a secured interactive 3 13 internet site maintained by the state. 3 14 g. To take any other action as may be reasonable or 3 15 appropriate to enforce this chapter and the commission rules. 3 16 Sec. 4. NEW SECTION. 99E.4 Requirements of applicant ==== fee 3 17 ==== penalty. 3 18 1. An applicant for a license to conduct internet fantasy 3 19 sports contests shall complete and sign an application on 3 20 the form prescribed and published by the commission. The 3 21 application shall include such information of the applicant 3 22 that the commission deems necessary for purposes of issuing a 3 23 license pursuant to this chapter. 3 24 2. An applicant shall submit fingerprints and information 3 25 that the commission deems necessary to the commission in the 3 26 manner prescribed on the application forms. The fingerprints 3 27 may be submitted to the federal bureau of investigation by the 3 28 department of public safety through the state criminal history 3 29 repository for the purpose of a national criminal history 3 30 check. 3 31 3. The commission shall charge the applicant a fee set 3 32 by the department of public safety, division of criminal 3 33 investigation, to defray the costs associated with any 3 34 investigations conducted pursuant to the requirements of this 3 35 section concerning the applicant. This fee is in addition 4 1 to any other license fee charged by the commission. The fee 4 2 may be retained by the department of public safety, division 4 3 of criminal investigation, and shall be considered repayment 4 4 receipts as defined in section 8.2. 4 5 4. A license shall not be granted to an applicant if there 4 6 is substantial evidence that any of the following apply: 4 7 a. A license issued to the applicant to conduct internet 4 8 fantasy sports contests in another jurisdiction has been 4 9 revoked by an entity licensing persons to conduct such contests 4 10 in that jurisdiction. 4 11 b. The applicant has not demonstrated financial 4 12 responsibility sufficient to adequately meet the requirements 4 13 of the enterprise proposed. 4 14 c. The applicant does not adequately disclose the true 4 15 owners of the enterprise proposed. 4 16 d. The applicant has knowingly made a false statement of a 4 17 material fact to the commission. 4 18 e. The applicant has failed to meet a monetary obligation in 4 19 connection with conducting an internet fantasy sports contest. 4 20 f. The applicant is not of good repute and moral character 4 21 or the applicant has pled guilty to, or has been convicted of, 4 22 a felony. 4 23 g. Any member of the board of directors of the applicant is 4 24 not twenty=one years of age or older. 4 25 5. A person who knowingly makes a false statement on the 4 26 application is guilty of an aggravated misdemeanor. 4 27 6. For the purposes of this section, "applicant" includes 4 28 each member of the board of directors of an internet fantasy 4 29 sports contest service provider. 4 30 Sec. 5. NEW SECTION. 99E.5 Licenses ==== fees ==== terms and 4 31 conditions ==== revocation. 4 32 1. If the commission is satisfied that the requirements 4 33 of this chapter and its rules adopted under this chapter 4 34 applicable to licensees have been or will be complied with, the 4 35 commission shall issue a license for a period of not more than 5 1 three years to an applicant to conduct internet fantasy sports 5 2 contests in this state. 5 3 2. A licensed internet fantasy sports contest service 5 4 provider shall comply with all of the following requirements: 5 5 a. Prevent employees of the internet fantasy sports contest 5 6 service provider and relatives living in the same household of 5 7 such employees from competing in any internet fantasy sports 5 8 contest on the service provider's digital platform in which the 5 9 service provider offers a cash prize to the public. 5 10 b. Verify that an internet fantasy sports contest player 5 11 located in this state is twenty=one years of age or older. 5 12 c. Ensure that coaches, officials, players, contestants, 5 13 or other individuals who participate in a game or contest 5 14 that is the subject of an internet fantasy sports contest are 5 15 restricted from entering an internet fantasy sports contest in 5 16 which the outcome is determined, in whole or in part, by the 5 17 accumulated statistical results of a team of individuals in the 5 18 game or contest in which they participate. 5 19 d. Prohibit internet fantasy sports contests based upon any 5 20 extracurricular interscholastic athletic contest or competition 5 21 which is sponsored or administered by an organization as 5 22 defined in section 280.13, any amateur athletic contest or 5 23 competition in which all participants are under the age of 5 24 twenty=one, or any intercollegiate sport as defined in section 5 25 9A.102. 5 26 e. Allow individuals to restrict themselves from entering 5 27 an internet fantasy sports contest conducted by the internet 5 28 fantasy sports contest service provider upon request and take 5 29 reasonable steps to prevent those individuals from entering 5 30 any internet fantasy sports contests conducted by the internet 5 31 fantasy sports contest service provider. 5 32 f. Disclose the number of entries a single internet fantasy 5 33 sports contest player may submit to each internet fantasy 5 34 sports contest and take reasonable steps to prevent players 5 35 from submitting more than the allowable number of entries for 6 1 that internet fantasy sports contest. 6 2 g. Segregate internet fantasy sports contest player funds 6 3 from operational funds and maintain a reserve in the form 6 4 of cash, cash equivalents, an irrevocable letter of credit, 6 5 payment processor reserves and receivables, a bond, or a 6 6 combination thereof in the amount of the deposits in internet 6 7 fantasy sports contest player accounts for the benefit and 6 8 protection of internet fantasy sports contest player funds held 6 9 in internet fantasy sports contest accounts by the internet 6 10 fantasy sports contest service provider. 6 11 h. Annually contract with a third party to perform an 6 12 independent audit, consistent with the standards established 6 13 by the American institute of certified public accountants, 6 14 to ensure compliance with all of the requirements in this 6 15 chapter and submit the results of the independent audit to the 6 16 commission. 6 17 i. Pay the tax as provided in section 99E.6. 6 18 3. The annual license fee to conduct internet fantasy sports 6 19 contests shall be five hundred dollars. Moneys collected by 6 20 the commission from the annual license fee paid under this 6 21 subsection shall be considered repayment receipts as defined 6 22 in section 8.2. 6 23 4. a. A licensed internet fantasy sports contest service 6 24 provider shall pay a regulatory fee to the commission. The 6 25 regulatory fee shall be established by the commission based on 6 26 the costs of administering and enforcing this chapter. 6 27 b. A licensed internet fantasy sports contest service 6 28 provider shall receive a credit for the amount of the 6 29 regulatory fee paid by the provider against the taxes to be 6 30 paid pursuant to section 99E.6. 6 31 c. Moneys collected by the commission from the regulatory 6 32 fees paid under this subsection shall be considered repayment 6 33 receipts as defined in section 8.2. 6 34 5. Upon a violation of any of the conditions listed in 6 35 section 99E.4 or this section by a licensee, the commission 7 1 shall immediately revoke the license. 7 2 Sec. 6. NEW SECTION. 99E.6 Internet fantasy sports contest 7 3 tax ==== rate ==== allocations. 7 4 1. A tax of seven and one=half percent is imposed on 7 5 internet fantasy sports contest adjusted revenues. The tax 7 6 imposed by this section shall be paid by the internet fantasy 7 7 sports contest service provider to the commission as provided 7 8 by the commission. 7 9 2. Of the revenues collected pursuant to this section, an 7 10 amount equal to one=half of one percent of internet fantasy 7 11 sports contest adjusted revenues is transferred to a special 7 12 revenue account in the general fund of the state to be used, 7 13 subject to an appropriation by the general assembly, by the 7 14 department of public health for purposes of the gambling 7 15 treatment program established pursuant to section 135.150. The 7 16 remaining amount of the revenues collected pursuant to this 7 17 section shall be deposited in the rebuild Iowa infrastructure 7 18 fund created in section 8.57. 7 19 Sec. 7. NEW SECTION. 99E.7 Internet fantasy sports contests 7 20 ==== age restrictions. 7 21 A person under the age of twenty=one years shall not enter an 7 22 internet fantasy sports contest. A person who violates this 7 23 section with respect to entering an internet fantasy sports 7 24 contest commits a scheduled violation under section 805.8C, 7 25 subsection 11. 7 26 Sec. 8. NEW SECTION. 99E.8 Division of criminal 7 27 investigation. 7 28 The division of criminal investigation of the department of 7 29 public safety may investigate to determine licensee compliance 7 30 with the requirements of this chapter. Investigations may be 7 31 conducted either on the criminal investigation division's own 7 32 initiative or at the request of the commission. The criminal 7 33 investigation division and the commission shall cooperate to 7 34 the maximum extent possible on an investigation. 7 35 Sec. 9. NEW SECTION. 99E.9 Setoff. 8 1 1. A licensee or a person acting on behalf of a licensee 8 2 shall be provided electronic access to the names of the 8 3 persons indebted to a claimant agency pursuant to the process 8 4 established pursuant to section 99E.3, subsection 5. The 8 5 electronic access provided by the claimant agency shall 8 6 include access to the names of the debtors, their social 8 7 security numbers, and any other information that assists the 8 8 licensee in identifying the debtors. If an internet fantasy 8 9 sports contest player located in this state makes an account 8 10 balance withdrawal equal to one thousand two hundred dollars 8 11 or greater, the licensee shall perform an electronic records 8 12 search of persons indebted to a claimant agency. If the name 8 13 of the internet fantasy sports contest player is retrieved by 8 14 the licensee pursuant to the records search, the retrieval of 8 15 such a name shall constitute a valid lien upon and claim of 8 16 lien against the account balance withdrawal of the internet 8 17 fantasy sports contest player whose name is electronically 8 18 retrieved from the claimant agency. If an internet fantasy 8 19 sports contest player's account balance withdrawal is equal 8 20 to or greater than one thousand two hundred dollars per 8 21 occurrence, the full amount of the debt shall be collectible 8 22 from any account balance withdrawal due the internet fantasy 8 23 sports contest player without regard to limitations on the 8 24 amounts that may be collectible in increments through setoff or 8 25 other proceedings. 8 26 2. The licensee is authorized and directed to withhold 8 27 any account balance withdrawal of an internet fantasy sports 8 28 contest player which is paid out directly by the licensee 8 29 subject to the lien created by this section and provide notice 8 30 of such withholding to the internet fantasy sports contest 8 31 player making the account balance withdrawal. The licensee 8 32 shall pay the funds over to the collection entity which 8 33 administers the setoff program pursuant to section 8A.504. 8 34 3. Notwithstanding any other provision of law to the 8 35 contrary, the licensee may provide to a claimant agency all 9 1 information necessary to accomplish and effectuate the intent 9 2 of this section, and likewise the claimant agency may provide 9 3 all information necessary to accomplish and effectuate the 9 4 intent of this section. 9 5 4. The information obtained by a claimant agency from the 9 6 licensee in accordance with this section shall retain its 9 7 confidentiality and shall only be used by a claimant agency in 9 8 the pursuit of its debt collection duties and practices. An 9 9 employee or prior employee of a claimant agency who unlawfully 9 10 discloses any such information for any other purpose, except 9 11 as otherwise specifically authorized by law, shall be subject 9 12 to the penalties specified by law for unauthorized disclosure 9 13 of confidential information by an agent or employee of the 9 14 claimant agency. 9 15 5. The information obtained by a licensee from a claimant 9 16 agency in accordance with this section shall retain its 9 17 confidentiality and only be used by the licensee in the 9 18 pursuit of debt collection duties and practices. An employee 9 19 or prior employee of a licensee who unlawfully discloses any 9 20 such information for any other purpose, except as otherwise 9 21 specifically authorized by law, shall be subject to the 9 22 same penalties specified by law for unauthorized disclosure 9 23 of confidential information by an agent or employee of the 9 24 licensee. 9 25 6. Except as otherwise provided in this chapter, 9 26 attachments, setoffs, or executions authorized and issued 9 27 pursuant to law shall be withheld if timely served upon the 9 28 licensee. 9 29 7. A claimant agency or licensee, acting in good faith, 9 30 shall not be liable to any person for actions taken pursuant to 9 31 this section. 9 32 Sec. 10. NEW SECTION. 99E.10 Penalties. 9 33 In addition to any other penalty specified in this chapter, 9 34 a person who willfully fails to comply with the requirements 9 35 of this chapter and the rules adopted pursuant to chapter 17A 10 1 commits a class "D" felony and, in addition, shall be barred 10 2 for life from internet fantasy sports contests. 10 3 Sec. 11. Section 232C.4, subsection 3, Code 2017, is amended 10 4 to read as follows: 10 5 3. An emancipated minor shall remain subject to voting 10 6 restrictions under chapter 48A, gambling restrictions under 10 7 chapter 99B, 99D, 99F, 99G, or 725, internet fantasy sports 10 8 contest restrictions under chapter 99E, alcohol restrictions 10 9 under chapter 123, compulsory attendance requirements under 10 10 chapter 299, and cigarette tobacco restrictions under chapter 10 11 453A. 10 12 Sec. 12. Section 714B.10, subsection 1, Code 2017, is 10 13 amended to read as follows: 10 14 1. Advertising by sponsors registered pursuant to chapter 10 15 557B, licensed pursuant to chapter 99B, or regulated pursuant 10 16 to chapter 99D, 99E, 99F, or 99G. 10 17 Sec. 13. Section 805.8C, Code 2017, is amended by adding the 10 18 following new subsection: 10 19 NEW SUBSECTION. 11. Internet fantasy sports contest 10 20 violations. For violations of legal age for entering an 10 21 internet fantasy sports contest under section 99E.7, the 10 22 scheduled fine is five hundred dollars. Failure to pay the 10 23 fine by a person under the age of eighteen shall not result in 10 24 the person being detained in a secure facility. 10 25 Sec. 14. TRANSITIONAL LICENSE. Notwithstanding any 10 26 provisions of Code chapter 99E as enacted by this Act to the 10 27 contrary, a person granted a license or registration by two 10 28 or more states to conduct internet fantasy sports contests 10 29 may apply for and shall be granted a transitional license by 10 30 the racing and gaming commission to conduct internet fantasy 10 31 sports contests in this state subject to the requirements of 10 32 Code chapter 99E, as enacted by this Act. The transitional 10 33 license shall be valid until the earlier of the date the 10 34 racing and gaming commission grants or denies a license under 10 35 section 99E.5 to the person to conduct internet fantasy sports 11 1 contests, or twelve months from the date the racing and gaming 11 2 commission accepts applications for issuance of a license to 11 3 conduct internet fantasy sports contests under section 99E.5. 11 4 Sec. 15. IMPLEMENTATION DATE. The following provision or 11 5 provisions of this Act shall not be implemented until July 1, 11 6 2019: 11 7 1. The section of this Act enacting section 99E.9. 11 8 EXPLANATION 11 9 The inclusion of this explanation does not constitute agreement with 11 10 the explanation's substance by the members of the general assembly. 11 11 This bill authorizes internet fantasy sports contests 11 12 and provides for the licensing, regulation, and taxation of 11 13 internet fantasy sports contests. 11 14 New Code section 99E.1 provides for definitions. A "fantasy 11 15 sports contest" is defined as any fantasy or simulated game 11 16 or contest in which all prizes and awards offered to winning 11 17 participants are established and made known in advance of the 11 18 contest, all winning outcomes reflect the relative knowledge 11 19 and skill of the participants and are determined predominantly 11 20 by accumulated statistical results of the performance of 11 21 individuals, and no winning outcome is based on the score, or 11 22 performance of any single actual team or combination of such 11 23 teams or solely on any single performance of an individual 11 24 athlete in any single actual sporting or other event. An 11 25 "internet fantasy sports contest" is defined as a method of 11 26 entering a fantasy sports contest by establishing an account 11 27 with an internet fantasy sports contest service provider. An 11 28 "internet fantasy sports contest player" is defined as a person 11 29 who is at least 21 years of age who participates in an internet 11 30 fantasy sports contest. The bill also defines internet fantasy 11 31 sports contest adjusted revenues, internet fantasy sports 11 32 contest service provider, and location percentage. 11 33 New Code section 99E.2 provides that the system of entering 11 34 an internet fantasy sports contest is legal when conducted by a 11 35 licensed internet fantasy sports contest service provider as 12 1 provided in the new Code chapter. 12 2 New Code section 99E.3 establishes the powers of the racing 12 3 and gaming commission in relation to internet fantasy sports 12 4 contests and internet fantasy sports contest service providers. 12 5 Specifically, the new Code section authorizes the commission 12 6 to investigate and license internet fantasy sports contest 12 7 service providers, assess fines and revoke or suspend licenses, 12 8 impose penalties for violations of the new Code chapter, and 12 9 take any other action to enforce the requirements of the new 12 10 Code chapter. 12 11 New Code section 99E.4 establishes the requirements for an 12 12 applicant to be granted a license to conduct internet fantasy 12 13 sports contests. The Code section allows the commission 12 14 to charge the applicant a fee for the department of public 12 15 safety, division of criminal investigation, to defray the 12 16 costs associated with any investigation. The new Code 12 17 section provides that a license shall not be issued if there 12 18 is evidence that the applicant has failed to meet certain 12 19 qualifying requirements. A person who knowingly makes a 12 20 false statement on the application is guilty of an aggravated 12 21 misdemeanor. 12 22 New Code section 99E.5 establishes the terms and conditions 12 23 of licenses issued to conduct internet fantasy sports contests. 12 24 The Code section provides that a license may be issued for 12 25 a period of not more than three years and provides that 12 26 the annual license fee shall be $500. The new Code section 12 27 also provides for the payment of a regulatory fee to be set 12 28 by the racing and gaming commission based on the costs of 12 29 administering and enforcing the new Code chapter. The new 12 30 Code section further provides that each licensee shall receive 12 31 a credit for the amount of the regulatory fee paid against 12 32 taxes to be paid pursuant to the new Code chapter. The new 12 33 Code section provides that a licensed internet fantasy sports 12 34 contest service provider shall prevent any employees and 12 35 certain family members from participating in internet fantasy 13 1 sports contests on the service provider's digital platform, 13 2 verify that internet fantasy sports contest players located 13 3 in this state are 21 or older, ensure that participants in 13 4 a game or contest shall not be allowed to enter an internet 13 5 fantasy sports contest involving that game or contest, prohibit 13 6 internet fantasy sports contests based upon any interscholastic 13 7 or intercollegiate athletic contest or any amateur athletic 13 8 contest or competition in which all participants are under 13 9 the age of 21, permit individuals to restrict themselves 13 10 from entering an internet fantasy sports contest, perform an 13 11 independent audit, and pay the tax imposed by the new Code 13 12 chapter. 13 13 New Code section 99E.6 provides for a tax of 7.5 percent 13 14 to be imposed on internet fantasy sports contest adjusted 13 15 revenues. The bill defines, in new Code section 99E.1, 13 16 internet fantasy sports contest adjusted revenues as the total 13 17 of fees and charges collected, less winnings, in an internet 13 18 fantasy sports contest multiplied by the percentage of fees 13 19 and charges paid by participants who are located in this state 13 20 in that contest. The bill provides that of the revenues 13 21 collected, an amount equal to .5 percent of internet fantasy 13 22 sports contest adjusted revenues is transferred to a special 13 23 revenue account in the general fund to be used, subject to an 13 24 appropriation, by the department of public health for gambling 13 25 treatment with the remainder of revenues collected to be 13 26 deposited in the rebuild Iowa infrastructure fund. 13 27 New Code section 99E.7 provides that a person under the 13 28 age of 21 shall not enter an internet fantasy sports contest. 13 29 A person who violates this Code section commits a scheduled 13 30 violation under Code section 805.8C and is subject to a $500 13 31 fine. Code section 805.8C is amended to reflect this violation 13 32 and applicable fine. 13 33 New Code section 99E.8 authorizes the division of criminal 13 34 investigation of the department of public safety to investigate 13 35 licensee compliance with the requirements of the new Code 14 1 chapter. 14 2 New Code section 99E.9 requires a licensee to offset 14 3 account balance withdrawals of an internet fantasy sports 14 4 contest player who is a debtor in an amount equal to or greater 14 5 than $1,200, subject to the requirements of this new Code 14 6 section. The bill provides that this Code section shall not be 14 7 implemented until July 1, 2019. 14 8 New Code section 99E.10 provides that, in addition to any 14 9 other penalty specified in the new Code chapter, a person who 14 10 willfully fails to comply with the requirements of the Code 14 11 chapter commits a class "D" felony and shall be barred for life 14 12 from internet fantasy sports contests. 14 13 Code section 232C.4, concerning emancipation orders and 14 14 minors, is amended to reflect that an emancipated minor is 14 15 subject to the age restrictions for internet fantasy sports 14 16 contests. 14 17 Code section 714B.10, concerning prize promotions, is 14 18 amended to exempt internet fantasy sports contests from the 14 19 Code chapter. 14 20 The bill provides for the issuance of a transitional license 14 21 by the racing and gaming commission to a person to conduct 14 22 internet fantasy sports contests in this state if the person 14 23 has been granted a license or registration by two or more other 14 24 states to conduct internet fantasy sports contests. The bill 14 25 provides that the transitional license shall be valid until the 14 26 earlier of the date the commission grants or denies a license 14 27 to the person or twelve months from the date the commission 14 28 accepts applications for issuance of a license. LSB 1635HV (5) 87 ec/nh
