Bill Text: IA HF642 | 2015-2016 | 86th General Assembly | Introduced
Bill Title: A bill for an act concerning social and charitable gambling and making penalties applicable. (Formerly HF 513) (Formerly HSB 148)
Sponsorship: Committee Bill
Status: (Introduced - Dead) 2015-04-29 - Withdrawn. H.J. 933. [HF642 Detail]
Download: Iowa-2015-HF642-Introduced.html
House File 642 - Introduced HOUSE FILE BY COMMITTEE ON WAYS AND MEANS (SUCCESSOR TO HF 513) (SUCCESSOR TO HSB 148) A BILL FOR 1 An Act concerning social and charitable gambling and making 2 penalties applicable. 3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: TLSB 1314HZ (2) 86 ec/nh PAG LIN 1 1 DIVISION I 1 2 SOCIAL AND CHARITABLE GAMBLING 1 3 Section 1. Section 99B.1, subsection 1, Code 2015, is 1 4 amended by striking the subsection and inserting in lieu 1 5 thereof the following: 1 6 1. "Amusement concession" means a game of skill or 1 7 game of chance with an instant win possibility where, if 1 8 the participant completes a task, the participant wins a 1 9 prize. "Amusement concession" includes but is not limited to 1 10 carnival=style games that are conducted by a person for profit. 1 11 "Amusement concession" does not include casino=style games or 1 12 amusement devices required to be registered pursuant to section 1 13 99B.53. 1 14 Sec. 2. Section 99B.1, subsections 2, 3, 5, 6, 15, 16, 17, 1 15 20, 21, and 26, Code 2015, are amended to read as follows: 1 16 2. "Amusement device" means an electrical or mechanical 1 17 device possessed and used in accordance withsection 99B.101 18 this chapter. When possessed and used in accordance with 1 19that sectionthis chapter, an amusement device is not a game of 1 20 skill or game of chance, and is not a gambling device. 1 21 3. "Applicant" means an individual or an organization 1 22 applying for a license under this chapter. 1 23 5. "Bingo" means a game, whether known as bingo or any other 1 24 name, in which each participant uses one or more cards each 1 25 of which is marked off into spaces arranged in horizontal and 1 26 vertical rows of spaces, with each space being designated by 1 27 number, letter, symbol, or picture, or combination of numbers, 1 28andletters,nosymbols, or pictures. No two cardsbeingshall 1 29 be identical, with. In the game of bingo, playerscovering 1 30shall cover spaces on the card or cards as the operator of the 1 31 game announces to the players the number, letter, symbol, or 1 32 picture, or combination of numbers,andletters, symbols, or 1 33 pictures, appearing on an object selected by chance, either 1 34 manually or mechanically, from a receptacle in which have 1 35 been placed objects bearing numbers, letters, symbols, or 2 1 pictures, or combinations of numbers,andletters, symbols, 2 2 or pictures corresponding to the system used for designating 2 3 the spaces, with the. The winner of each gamebeingis the 2 4 player or players first properly covering a predetermined and 2 5 announced pattern of spaces on a cardbeing used by the player 2 6 or players. Each determination of a winner by the method 2 7 described inthe preceding sentencethis subsection is a single 2 8 bingo game at any bingo occasion. 2 9 6. "Bingo occasion" means a single gathering or session 2 10 at whichsuccessivea series of bingo gamesareis played. A 2 11 bingo occasioncommencesbegins when the operator ofthea 2 12 bingo gamebegins to announce theselects an object with a 2 13 number, letter, symbol, or picture, or combination of numbers, 2 14orletters, symbols, or pictures through which the winner ofa 2 15 singlethe first bingo game in a series of bingo games will be 2 16 determined. A bingo occasion ends when at least one hour has 2 17 elapsed since a bingo game is played or when an announcement by 2 18 the operator of the bingo game is made that the bingo occasion 2 19 is over, whichever first occurs. 2 20 15. "Game of chance" means a game whereby the result is 2 21 determined by chance and the player in order to winaligns 2 22completes activities, such as aligning objects or balls in a 2 23 prescribed pattern or order or makes certain color patterns 2 24 appearand. "Game of chance" specifically includes but is not 2 25 limited tothe game defined asbingo.Game of chance"Game of 2 26 chance" does not include a slot machine or amusement device. 2 27 16. "Game of skill" means a game whereby the result is 2 28 determined by theplayerplayer's ability to do a task, such as 2 29 directing or throwing objects to designated areas or targets, 2 30 or by maneuvering water or an object into a designated area, or 2 31 by maneuvering a dragline device to pick up particular items, 2 32 or by shooting a gun or rifle. 2 33 17. "Gross receipts" means the total revenue received from 2 34 the sale of rights to participate in a game of skill, game of 2 35 chance, bingo, or raffle and admission fees or charges. 3 1 20. "Merchandise" means goods or services that are bought 3 2 and sold in the regular course of business. "Merchandise" 3 3 includes lottery tickets or shares sold or authorized under 3 4 chapter 99G. The value of the lottery ticket or share is the 3 5 price of the lottery ticket or share as established by the 3 6 Iowa lottery authority pursuant to chapter 99G. "Merchandise" 3 7 includes a gift card if the gift card is not redeemable for 3 8 cash. 3 9 21. "Net receipts" means gross receipts less amounts awarded 3 10 as prizes and less state and local sales tax paid upon the 3 11 gross receipts.Reasonable expenses, charges, fees, taxes 3 12 other than the state and local sales tax, and deductions 3 13 allowed by the department shall not exceed twenty=five percent 3 14 of net receipts.3 15 26. "Raffle" means a lottery in which each participant 3 16 buysa ticketan entry for a chance at a prize with the winner 3 17 determined by a random method and the winner is not required to 3 18 be present to win. "Raffle" does not include a slot machine. 3 19 Sec. 3. Section 99B.1, subsections 4, 10, 12, 13, 18, 19, 3 20 23, 24, 27, and 28, Code 2015, are amended by striking the 3 21 subsections. 3 22 Sec. 4. Section 99B.1, subsection 8, Code 2015, is amended 3 23 by striking the subsection and inserting in lieu thereof the 3 24 following: 3 25 8. "Bookmaking" means the determining of odds and receipt 3 26 and paying off of bets by an individual or publicly or 3 27 privately owned enterprise not present when the wager or bet 3 28 was undertaken. 3 29 Sec. 5. Section 99B.1, Code 2015, is amended by adding the 3 30 following new subsections: 3 31 NEW SUBSECTION. 8A. "Build=up or pyramid" means a raffle 3 32 or a game in which a prize must be returned in order to play 3 33 another game or to be eligible for another bigger prize, a game 3 34 in which a prize must be forfeited if a later game is lost, or a 3 35 raffle which is multi=step and requires the participant to win 4 1 at multiple steps to win the grand prize. 4 2 NEW SUBSECTION. 8B. "Calendar raffle" means a raffle where 4 3 a single entry is entered in one raffle where winners will be 4 4 selected over multiple dates. 4 5 NEW SUBSECTION. 8C. "Casino=style games" means any house 4 6 banking game, including but not limited to casino=style card 4 7 games such as poker, baccarat, chemin de fer, blackjack, and 4 8 pai gow, and casino games such as roulette, craps, and keno. 4 9 "Casino=style games" does not include a slot machine. 4 10 NEW SUBSECTION. 8D. "Charitable uses" includes uses 4 11 benefiting a definite number of persons who are the victims of 4 12 loss of home or household possessions through explosion, fire, 4 13 flood, or storm when the loss is uncompensated by insurance, 4 14 and uses benefiting a definite number of persons suffering from 4 15 a seriously disabling disease or injury, causing severe loss of 4 16 income or incurring extraordinary medical expense when the loss 4 17 is uncompensated by insurance. 4 18 NEW SUBSECTION. 12A. "Educational, civic, public, 4 19 charitable, patriotic, or religious uses" includes uses 4 20 benefiting a society for the prevention of cruelty to animals 4 21 or animal rescue league; uses benefiting an indefinite 4 22 number of persons either by bringing them under the influence 4 23 of education or religion or relieving them from disease, 4 24 suffering, or constraint, or by erecting or maintaining 4 25 public buildings or works, or otherwise lessening the burden 4 26 of government; and uses benefiting any bona fide nationally 4 27 chartered fraternal or military veterans' corporation or 4 28 organization which operates in Iowa a clubroom, post, dining 4 29 room, or dance hall, but does not include the erection, 4 30 acquisition, improvement, maintenance, or repair of real, 4 31 personal, or mixed property unless it is used for one or more 4 32 of the uses described in this subsection. 4 33 NEW SUBSECTION. 14A. "Gambling" means any activity where a 4 34 person risks something of value or other consideration for a 4 35 chance to win a prize. 5 1 NEW SUBSECTION. 14B. "Game night" means an event at 5 2 which casino=style games may be conducted, in addition to 5 3 games of skill and games of chance, within one consecutive 5 4 twenty=four=hour period. 5 5 NEW SUBSECTION. 17A. "Licensed qualified organization" 5 6 means a qualified organization that is issued a license under 5 7 this chapter and that complies with the requirements for a 5 8 qualified organization issued a license under this chapter. 5 9 NEW SUBSECTION. 24A. "Public uses" specifically includes 5 10 dedication of net receipts to political parties as defined in 5 11 section 43.2. 5 12 Sec. 6. Section 99B.1, subsection 25, Code 2015, is amended 5 13 by striking the subsection and inserting in lieu thereof the 5 14 following: 5 15 25. "Qualified organization" means an organization that has 5 16 an active membership of not less than twelve persons, does not 5 17 have a self=perpetuating governing body and officers, and meets 5 18 any of the following requirements: 5 19 a. Is exempt from federal income taxes under section 5 20 501(c)(3), 501(c)(4), 501(c)(5), 501(c)(6), 501(c)(7), 5 21 501(c)(8), 501(c)(10), or 501(c)(19) of the Internal Revenue 5 22 Code as defined in section 422.3. 5 23 b. Is an agency or instrumentality of the United States 5 24 government, this state, or a political subdivision of this 5 25 state. 5 26 c. Is a parent=teacher organization or booster club that 5 27 is recognized as a fund=raiser and supporter for a school 5 28 district organized pursuant to chapter 274 or for a school 5 29 within the school district, in a notarized letter signed by the 5 30 president of the board of directors, the superintendent of the 5 31 school district, or a principal of a school within that school 5 32 district. 5 33 d. Is a political party, as defined in section 43.2, or a 5 34 nonparty political organization that has qualified to place 5 35 a candidate as its nominee for statewide office pursuant to 6 1 chapter 44, or to a candidate's committee as defined in section 6 2 68A.102. 6 3 Sec. 7. Section 99B.3, Code 2015, is amended to read as 6 4 follows: 6 5 99B.3 Amusement concessions. 6 6 1.A game of skill or game of chance is lawful when 6 7 conducted by a person at an amusement concession, but only 6 8A person may conduct an amusement concession if all of the 6 9 followingare complied withconditions are met: 6 10 a.The location where the game is conducted by the person 6 11 has been authorized as provided in section 99B.4.6 12b.The person conducting thegameamusement concession has 6 13 submitted a license application and a fee of fifty dollars for 6 14 eachgameamusement concession, and has been issued a license 6 15 for thegameamusement concession, and prominently displays the 6 16 license at the playing area of thegameamusement concession. 6 17 A license is valid for a period of one year from the date of 6 18 issue. 6 19c. Gambling other than the licensed game is not conducted or 6 20 engaged in at the amusement concession.6 21d.b. Thegame isrules of the amusement concession are 6 22 prominently posted andthevisible from all playing positions. 6 23 c. The cost to playthe gamea single amusement concession 6 24 does not exceedthreefive dollars. 6 25e.d. A prize is not displayed which cannot be won. 6 26f.e. Cash prizes are not awardedand merchandise prizes 6 27 are not repurchased. 6 28g.f. Thegameamusement concession is not operated on a 6 29 build=up or pyramid basis. 6 30 g. A pet, as defined in section 717E.1, is not awarded. 6 31 h. The actual retail value of any prize does not exceed 6 32fiftyone hundred dollars. If a prize consists of more than 6 33 one item, unit, or part, the aggregate retail value of all 6 34 items, units, or parts shall not exceedfiftyone hundred 6 35 dollars. 7 1 i. Merchandise prizes are not repurchased from the 7 2 participants. However, a participant may have the option, at 7 3 no additional cost to the participant, of trading multiple 7 4 smaller prizes for a single larger prize. 7 5 j. Concealed numbers or conversion charts are not used to 7 6 play thegame and the gameamusement concession. 7 7 k. The amusement concession is not designed or adapted with 7 8 any control device to permit manipulation of thegameamusement 7 9 concession by the operator in order to prevent a player from 7 10 winning or to predetermine who the winner will be, and the 7 11 object target, block or. 7 12 l. The object of thegameamusement concession must be 7 13 attainable and possible to perform under the rules stated from 7 14theall playingposition of the playerpositions. 7 15j.m. Thegameamusement concession is conducted in a fair 7 16 and honest manner. 7 17 2.It is lawful for anAn individual other than a person 7 18 conducting thegame toamusement concession may participate in 7 19a game of skill or game of chance conducted atan amusement 7 20 concession, whether or not the amusement concession is 7 21 conducted in compliance withsubsection 1this section. 7 22 Sec. 8. Section 99B.5A, subsection 1, paragraph b, Code 7 23 2015, is amended to read as follows: 7 24 b. "Community group" means an Iowa nonprofit, tax=exempt 7 25 organization which is open to the general public and 7 26 established for the promotion and development of the arts, 7 27 history, culture, ethnicity, historic preservation, tourism, 7 28 economic development, festivals, or municipal libraries. 7 29 "Community group" does not include a school, college, 7 30 university, political party, labor union,state or federal 7 31 government agency,fraternal organization, church, convention 7 32 or association of churches, or organizations operated primarily 7 33 for religious purposes, or which are operated, supervised, 7 34 controlled, or principally supported by a church, convention, 7 35 or association of churches. 8 1 Sec. 9. Section 99B.5A, subsection 2, paragraphs a, c, and 8 2 e, Code 2015, are amended to read as follows: 8 3 a. Bingo is conducted by the sponsor of the fair or 8 4 community festival or a qualified organization licensed under 8 5 section99B.799B.12B that has received permission from the 8 6 sponsor of the fair or community festival to conduct bingo. 8 7 c. The number of bingo occasions conducted by a licensee 8 8 under this section shall be limited to one for each day of the 8 9 duration of the fair or community festival. 8 10 e. Except as provided in this section, the provisions of 8 11sections 99B.2 and 99B.7this chapter related to bingo shall 8 12 apply. 8 13 Sec. 10. Section 99B.5A, subsection 4, Code 2015, is amended 8 14 to read as follows: 8 15 4. Bingo occasions held under a license under this section 8 16 shall not be counted in determining whether a qualified 8 17 organization has conducted more thanfourteenfifteen bingo 8 18 occasions per month. In addition, bingo occasions held under 8 19 this license shall not be limited to four consecutive hours. 8 20 Sec. 11. Section 99B.6, Code 2015, is amended by striking 8 21 the section and inserting in lieu thereof the following: 8 22 99B.6 Social gambling in licensed alcohol establishments. 8 23 1. Social gambling is lawful on the premises of an 8 24 establishment for which a class "A", class "B", class "C", 8 25 special class "C", or class "D" liquor control license, or 8 26 class "B" beer permit has been issued pursuant to chapter 123 8 27 when, subject to the provisions of section 99B.42, all of the 8 28 following requirements are met: 8 29 a. The liquor control licensee or beer permittee has 8 30 submitted an application for a social gambling license and a 8 31 license fee of one hundred fifty dollars to the department, and 8 32 a license has been issued. 8 33 b. The license is prominently displayed on the premises of 8 34 the establishment. 8 35 c. The social gambling licensee or any agent or employee 9 1 of the licensee does not participate in, sponsor, conduct, 9 2 promote, or act as cashier or banker for any social gambling, 9 3 except as a participant while playing on the same basis as 9 4 every other participant. 9 5 d. A person under the age of twenty=one years shall not 9 6 participate in the social games. A social gambling licensee 9 7 or an agent or employee of the licensee who knowingly allows 9 8 a person under the age of twenty=one to participate in the 9 9 gambling prohibited by this section or a person who knowingly 9 10 participates in gambling with a person under the age of 9 11 twenty=one, is subject to a penalty under section 99B.15. 9 12 2. A liquor control licensee or beer permittee with a social 9 13 gambling license issued pursuant to this section may conduct 9 14 a sports betting pool if all of the requirements of this 9 15 subsection are met. 9 16 a. The pool shall be publicly displayed and the rules of 9 17 the pool, including the cost per participant and the amount or 9 18 amounts that will be won, shall be conspicuously displayed on 9 19 or near the pool. 9 20 b. A participant shall not wager more than five dollars in 9 21 the pool. 9 22 c. The maximum winnings awarded to all participants in the 9 23 pool shall not exceed five hundred dollars. 9 24 d. The provisions of section 99B.42, except section 99B.42, 9 25 subsection 1, paragraphs "a" and "h", are applicable to pools 9 26 conducted under this subsection. 9 27 e. The use of concealed numbers in the pool is permissible. 9 28 If the pool involves the use of concealed numbers, the numbers 9 29 shall be selected by a random method and no person shall be 9 30 aware of the numbers at the time wagers are made in the pool. 9 31 f. All moneys wagered in the pool shall be awarded as 9 32 winnings to participants. 9 33 3. An establishment issued a social gambling license under 9 34 this section that is required to obtain a new liquor license 9 35 or permit under chapter 123 due to a change in ownership shall 10 1 be required to obtain a new social gambling license under this 10 2 section to conduct social gambling. 10 3 Sec. 12. Section 99B.7A, Code 2015, is amended by striking 10 4 the section and inserting in lieu thereof the following: 10 5 99B.7A Manufacturers and distributors == bingo equipment and 10 6 supplies == electronic raffle systems == transfer or use. 10 7 1. As used in this section, unless the context otherwise 10 8 requires, "manufacturer or distributor" means a person engaged 10 9 in business in this state who originally produces, or purchases 10 10 from a business that originally produces, equipment or supplies 10 11 which are specifically used in the conduct of a bingo occasion 10 12 or an electronic raffle. 10 13 2. A person shall not engage in business in this state as a 10 14 manufacturer or distributor without first obtaining a license 10 15 from the department. 10 16 a. Upon receipt of an application and a fee of one thousand 10 17 dollars for a manufacturer or distributor license, the 10 18 department may issue an annual license. 10 19 b. A license may be renewed annually upon submission of an 10 20 application, payment of the annual license fee, and compliance 10 21 with this section and the rules adopted pursuant to this 10 22 section. 10 23 3. A licensed manufacturer or distributor may sell bingo 10 24 equipment or supplies or an electronic raffle system directly 10 25 to a licensed qualified organization. 10 26 4. A licensed qualified organization under this chapter 10 27 may dispose of, transfer, or sell excess bingo equipment or 10 28 supplies on a nonroutine basis to another licensed qualified 10 29 organization. 10 30 5. A licensed qualified organization shall not sublease, 10 31 rent, borrow, or otherwise use another qualified organization's 10 32 electronic raffle system. 10 33 Sec. 13. Section 99B.7B, subsection 1, Code 2015, is amended 10 34 to read as follows: 10 35 1. As used in this section, unless the context otherwise 11 1 requires: 11 2 a. "Card game"means onlyincludes but is not limited to 11 3 poker, pinochle, pitch, gin rummy, bridge, euchre, hearts, or 11 4 cribbage. 11 5 b. "Qualified organization representing veterans" means any 11 6licensedqualified organizationrepresentingwhich represents 11 7 veterans, which is a post, branch, or chapter of a national 11 8 association of veterans of the armed forces of the United 11 9 States which is a federally chartered corporation, dedicates 11 10 the net receipts of a game of skill, game of chance, or raffle 11 11 as provided in section99B.799B.14A, and is exempt from 11 12 federal income taxes under section 501(c)(19) of the Internal 11 13 Revenue Code as defined in section 422.3, has an active 11 14 membership of not less than twelve persons, and does not have a 11 15 self=perpetuating governing body and officers. 11 16 Sec. 14. Section 99B.7B, subsection 2, Code 2015, is amended 11 17 by adding the following new paragraph: 11 18 NEW PARAGRAPH. 0a. The qualified organization representing 11 19 veterans has been issued a license pursuant to section 99B.12B. 11 20 The license application shall identify the premises where the 11 21 card game tournaments are to be conducted and the occupancy 11 22 limit of the premises, and shall include documentation that 11 23 the qualified organization representing veterans has conducted 11 24 regular meetings of the organization at the premises during the 11 25 previous eight months. 11 26 Sec. 15. Section 99B.7B, subsection 2, paragraphs a, b, c, 11 27 d, e, and g, Code 2015, are amended to read as follows: 11 28 a. The qualified organizationconducting the card game 11 29 tournament has been issued a license pursuant to subsection 4 11 30 andrepresenting veterans prominently displaysthatthe license 11 31 in the playing area of the card game tournament. 11 32 b. The card games to be conducted during a card game 11 33 tournament, including the rules of each card game and how 11 34 winners are determined, shall be displayed prominently in the 11 35 playing area of the card game tournament. 12 1 0c. Each card game shall be conducted in a fair and honest 12 2 mannerand. 12 3 00c. Each card game shall not be operated on a build=up or 12 4 pyramid basis. 12 5 000c. Every participant in a card game tournament must be 12 6 given the same chances of winning the tournament and shall not 12 7 be allowed any second chance entries or multiple entries in the 12 8 card game tournament. 12 9 c. Participation in a card game tournamentconducted by 12 10 a qualified organization representing veteransshall only be 12 11 open to members of the qualified organization representing 12 12 veterans and guests of members of the qualified organization 12 13 participating in the tournament, subject to the requirements of 12 14 this section. 12 15 0d. The total number of members and guests participating in 12 16 a card game tournament shall not exceed the occupancy limit of 12 17 the premises where the card game tournament is being conducted. 12 18 00d. Participants in a card game tournament shall be at 12 19 least twenty=one years of age. 12 20 d. (1) If the card game tournament is limited to one guest 12 21 for each member of the qualified organization representing 12 22 veterans participating in the tournament, then the requirements 12 23 of this subparagraph (1) shall apply. The cost to participate 12 24 in a card game tournament under this subparagraph (1) shall be 12 25 limited to one hundred dollars and shall be the same for every 12 26 participant in the card game tournament. Cash or merchandise 12 27 prizes may be awarded during a card game tournament under this 12 28 subparagraph (1) and shall not exceed one thousand dollars and 12 29 no participant shall win more than a total of five hundred 12 30 dollars. 12 31 (2) If the card game tournament is not limited to one guest 12 32 for each member of the qualified organization representing 12 33 veterans participating in the tournament, then the requirements 12 34 of this subparagraph (2) shall apply. The cost to participate 12 35 in a card game tournament under this subparagraph (2) shall be 13 1 limited to twenty=five dollars and shall be the same for every 13 2 participant in the card game tournament. Cash or merchandise 13 3 prizes may be awarded during a card game tournament under this 13 4 subparagraph (2) and shall not exceed three hundred dollars 13 5 and no participant shall win more than a total of two hundred 13 6 dollars. 13 7(3)0e. A qualified organization representing veterans 13 8 shall distribute amounts awarded as prizes on the day they 13 9 are won and merchandise prizes shall not be repurchased. An 13 10 organization conducting a card game tournament shall only 13 11 display prizes in the playing area of the card game tournament 13 12 that can be won. 13 13 e. The qualified organization representing veterans shall 13 14 conduct each card game tournament and any card game conducted 13 15 during the tournament and shall not contract with or permit 13 16 another person to conduct the card game tournament or any card 13 17 game during the tournament.In addition, the13 18 0f. The card game tournament and any card game conducted 13 19 during the tournament shall be conducted only on the premises 13 20 of the qualified organization representing veterans as 13 21 identified in the license applicationpursuant toas required 13 22 by this subsection4. 13 23 g. A qualified organization representing veterans licensed 13 24 under this section shall not hold more than two card game 13 25 tournaments per month and shall not hold a card game tournament 13 26 within seven calendar days of another card game tournament 13 27 conducted by that qualified organization representing veterans. 13 28 Card game tournaments heldunder an annualduring a game night 13 29licenseconducted pursuant to section 99B.26 shall not count 13 30 toward the limit of one card game tournament per week for a 13 31 license holder. A qualified organization representing veterans 13 32 shall be allowed to hold only one card game tournament during 13 33 any period of twenty=four consecutive hours, starting from the 13 34 time the card game tournament begins. 13 35 Sec. 16. Section 99B.7B, subsection 2, paragraph h, Code 14 1 2015, is amended by striking the paragraph. 14 2 Sec. 17. Section 99B.7B, subsection 3, Code 2015, is amended 14 3 to read as follows: 14 4 3. The qualified organization representing veterans 14 5 licensed to hold card game tournaments under this section 14 6 shall keep a journal of all dates of events, amount of gross 14 7 receipts, amount given out as prizes, expenses, amount 14 8 collected for taxes, and the amount collected as revenue. 14 9 a. The qualified organization representing veterans shall 14 10 dedicate and distribute the net receipts from each card 14 11 game tournament as provided in section99B.7, subsection 3, 14 12 paragraph "b"99B.14A. 14 13 b. Each qualified organization representing veterans shall 14 14 withhold that portion of the gross receipts subject to taxation 14 15 pursuant to section 423.2, subsection 4, which shall be kept 14 16 in a separate account and sent to the state along with the 14 17 organization's annual report required by section99B.299B.16A. 14 18 c. A qualified organization representing veterans licensed 14 19 to conduct card game tournamentsis allowed tomay withhold no 14 20 more than five percent of the gross receipts from each card 14 21 game tournament for qualified expenses. Qualified expenses 14 22 include but are not limited to the purchase of supplies and 14 23 materials used in conducting card games. Any money collected 14 24 for expenses and not used by the end of the state fiscal year 14 25 shall be donated for educational, civic, public, charitable, 14 26 patriotic, or religious usesas described in section 99B.7, 14 27 subsection 3, paragraph "b". The qualified organization 14 28 representing veterans shall attach a receipt for any donation 14 29 made to the annual report required to be submitted pursuant to 14 30 section99B.299B.16A. 14 31 d. Each qualified organization representing veterans 14 32 licensed under this section shall make recordkeeping and all 14 33 deposit receipts available as provided in section99B.2, 14 34 subsection 299B.16A. 14 35 Sec. 18. Section 99B.7B, subsection 4, Code 2015, is amended 15 1 by striking the subsection. 15 2 Sec. 19. Section 99B.9, Code 2015, is amended by striking 15 3 the section and inserting in lieu thereof the following: 15 4 99B.9 Social gambling in public places. 15 5 Social gambling in a public place is lawful, subject to 15 6 the provisions of section 99B.42, if all of the following 15 7 requirements are met: 15 8 1. The social gambling is conducted at any public place 15 9 owned, leased, rented, or otherwise occupied by the licensee. 15 10 2. The person occupying the premises of the public place as 15 11 an owner or tenant has submitted an application for a license 15 12 and a fee of one hundred dollars to the department, and a 15 13 license has been issued. 15 14 3. The license is prominently displayed on the premises of 15 15 the public place. 15 16 4. The licensee or any agent or employee of the licensee 15 17 does not participate in, sponsor, conduct, promote, or act 15 18 as cashier or banker for any gambling activities, except as 15 19 a participant while playing on the same basis as every other 15 20 participant. 15 21 Sec. 20. Section 99B.10A, Code 2015, is amended to read as 15 22 follows: 15 23 99B.10A Electricalandor mechanical amusement device 15 24 manufacturers, distributors, and for=profit owners == 15 25 registration. 15 26 1. A person engaged in business in this state as a 15 27 manufacturer,manufacturer's representative,distributor, or 15 28 for=profit owner of electricalandor mechanical amusement 15 29 devices required to be registered as provided in section 15 3099B.10, subsection 1, paragraph "f"99B.53, shall register with 15 31 the department. Each person who registers with the department 15 32 under this section shall pay an annual registration fee in an 15 33 amount as provided in subsection 2. Registration shall be 15 34 submitted on application forms designated by the department 15 35 that shall contain the information required by the department 16 1 by rule. The department shall adopt rules establishing the 16 2 criteria for approval or denial of a registration application 16 3 and providing for the submission of information to the 16 4 department by a person registered pursuant to this section if 16 5 information in the initial registration is changed, including 16 6 discontinuing the business in this state. 16 7 2. For purposes of this section, the annual registration fee 16 8 shall be as follows: 16 9 a. For a manufactureror manufacturer's representative, two 16 10 thousand five hundred dollars. 16 11 b. For a distributor, five thousand dollars. 16 12 c. For an owner of no more thantwofour electricalandor 16 13 mechanical amusement devices registered as provided in section 16 1499B.10, subsection 1, paragraph "f"99B.53, at a single location 16 15 or premises that is notana qualified organizationthat meets 16 16 the requirements of section 99B.7, subsection 1, paragraph "m", 16 17 two thousand five hundred dollars. 16 18 Sec. 21. Section 99B.10B, Code 2015, is amended to read as 16 19 follows: 16 20 99B.10B Revocation of registration == electricalandor 16 21 mechanical amusement devices == suspension of liquor license or 16 22 beer permit. 16 23 1. a. The department may deny, suspend, or revoke a 16 24 registration issued pursuant to section99B.10 or99B.10A or 16 25 99B.53, if the department finds that an applicant, registrant, 16 26 or an agent of a registrant violated or permitted a violation 16 27 of a provision of section99B.10,99B.10A,or99B.10C, 99B.52, 16 28 or 99B.53, or a departmental rule adopted pursuant to chapter 16 29 17A, or for any other cause for which the director of the 16 30 department would be or would have been justified in refusing to 16 31 issue a registration, or upon the conviction of a person of a 16 32 violation of this chapter or a rule adopted under this chapter 16 33 which occurred on the premises where the registered amusement 16 34 device is or is to be located.However, the16 35 b. The denial, suspension, or revocation of a registration 17 1 for one amusement device does not require, but may result in, 17 2 the denial, suspension, or revocation of the registration for 17 3 a different amusement device held by the same distributor or 17 4 owner. 17 5b.c.However, aA person who commits an offense of failing 17 6 to include a security mechanism on an amusement device as 17 7 required pursuant to section99B.10, subsection 1, paragraph 17 8 "m"99B.52, subsection 4, shall be subject to a civil penalty in 17 9 the amount of two hundred fifty dollars. A person who commits, 17 10 within two years, a second offense of failing to include a 17 11 security mechanism on an amusement device shall be subject to 17 12 the provisions of paragraph "a". 17 13 2. a. A person who commits an offense of awarding a cash 17 14 prize of fifty dollars or less in violation of section99B.10, 17 15 subsection 1, paragraph "b"99B.52, subsection 3, pursuant 17 16 to rules adopted by the department, shall be subject to a 17 17 civil penalty in the amount of two hundred fifty dollars. 17 18 Additional sanctions beyond the civil penalty prescribed by 17 19 this paragraph, including but not limited to the suspension or 17 20 revocation of any liquor control license issued pursuant to 17 21 chapter 123 or registration issued pursuant to section 99B.10A 17 22 or 99B.53, shall not be applicable. 17 23 b. A person who commits, within two years, a second offense 17 24 of awarding a cash prize of fifty dollars or less in violation 17 25 of section99B.10, subsection 1, paragraph "b"99B.52, 17 26 subsection 3, or a person who commits an offense of awarding a 17 27 cash prize of more than fifty dollars in violation of section 17 2899B.10, subsection 1, paragraph "b"99B.52, subsection 3, 17 29 pursuant to rules adopted by the department, shall be subject 17 30 to revocation of the person's registration and the following: 17 31 (1) If the person whose registration is revoked under this 17 32 paragraph "b", is a person for which a class "A", class "B", 17 33 class "C", special class "C", or class "D" liquor control 17 34 license has been issued pursuant to chapter 123, the person's 17 35 liquor control license shall be suspended for a period of 18 1 fourteen days in the same manner as provided in section 123.50, 18 2 subsection 3, paragraph "a". 18 3 (2) If the person whose registration is revoked under this 18 4 paragraph "b", is a person for which only a class "B" or class 18 5 "C" beer permit has been issued pursuant to chapter 123, the 18 6 person's class "B" or class "C" beer permit shall be suspended 18 7 for a period of fourteen days in the same manner as provided in 18 8 section 123.50, subsection 3, paragraph "a". 18 9 (3) If a person owning or employed by an establishment 18 10 having a class "A", class "B", class "C", special class "C", 18 11 or class "D" liquor control license issued pursuant to chapter 18 12 123 commits an offense as provided in this paragraph "b", the 18 13 liquor control license of the establishment shall be suspended 18 14 for a period of fourteen days in the same manner as provided in 18 15 section 123.50, subsection 3, paragraph "a". 18 16 (4) If a person owning or employed by an establishment 18 17 having a class "B" or class "C" beer permit issued pursuant to 18 18 chapter 123 commits an offense as provided in this paragraph 18 19 "b", the beer permit of the establishment shall be suspended 18 20 for a period of fourteen days in the same manner as provided in 18 21 section 123.50, subsection 3, paragraph "a". 18 22 3. a. The process for denial, suspension, or revocation of 18 23 a registration issued pursuant to section99B.10 or99B.10A, 18 24or 99B.53, shall commence by delivering to the applicant or 18 25 registrantby certified mail, return receipt requested, or 18 26 by personal service anotice, by means authorized by section 18 27 17A.18, setting forth the proposed action and the particular 18 28 reasons for such action. 18 29 b. (1) If a written request for a hearing is not received 18 30 within thirty days afterthe mailing or service of thethe 18 31 delivery of notice as provided by paragraph "a", the denial, 18 32 suspension, or revocation of a registration shall become 18 33 effective pending a final determination by the department. The 18 34 proposed action in the notice may be affirmed, modified, or set 18 35 aside by the department in a written decision. 19 1 (2) If a request for a hearing is timely received by 19 2 the department, the applicant or registrant shall be given 19 3 an opportunity for a prompt and fair hearing before the 19 4 department and the denial, suspension, or revocation shall 19 5 be deemed suspended until the department makes a final 19 6 determination. However, the director of the department may 19 7 suspend a registration prior to a hearing if the director 19 8 finds that the public integrity of the registered activity 19 9 is compromised or there is a risk to public health, safety, 19 10 or welfare. In addition, at any time during or prior to the 19 11 hearing, the department may rescind the notice of the denial, 19 12 suspension, or revocation upon being satisfied that the reasons 19 13 for the denial, suspension, or revocation have been or will 19 14 be removed. On the basis of any such hearing, the proposed 19 15 action in the notice may be affirmed, modified, or set aside by 19 16 the department in a written decision. The procedure governing 19 17 hearings authorized by this paragraph shall be in accordance 19 18 with the rules promulgated by the department and chapter 17A. 19 19 c. A copy of the final decision of the department shall 19 20 be sent by electronic mail or certified mail, with return 19 21 receipt requested, or served personally upon the applicant or 19 22 registrant. The applicant or registrant may seek judicial 19 23 review in accordance with the terms of the Iowa administrative 19 24 procedure Act, chapter 17A. 19 25 d. If the department finds cause for denial of a 19 26 registration issued pursuant to section99B.10 or99B.10A, 19 27or 99B.53, the applicant shall not reapply for the same 19 28 registration for a period of two years. If the department 19 29 finds cause for a suspension or revocation, the registration 19 30 shall be suspended or revoked for a period not to exceed two 19 31 years. 19 32 Sec. 22. Section 99B.10C, Code 2015, is amended to read as 19 33 follows: 19 34 99B.10CElectrical andRegistered electrical or mechanical 19 35 amusement devices == persons under twenty=one == penalties. 20 1 1. A person under the age of twenty=one years shall not 20 2 participate in the operation ofana registered electricaland 20 3or mechanical amusement device. A person who violates this 20 4 subsection commits a scheduled violation under section 805.8C, 20 5 subsection 4. 20 6 2. A person owning or leasingana registered electrical 20 7andor mechanical amusement device, or an employee of a person 20 8 owning or leasingana registered electricalandor mechanical 20 9 amusement device, who knowingly allows a person under the age 20 10 of twenty=one years to participate in the operation ofana 20 11 registered electricalandor mechanical amusement device, or 20 12 a person who knowingly participates in the operation ofana 20 13 registered electricalandor mechanical amusement device with a 20 14 person under the age of twenty=one years, is guilty of a simple 20 15 misdemeanor. 20 16 3. For purposes of this section,an electrical and 20 17 mechanical amusement device"registered electrical or mechanical 20 18 amusement device" means an electricalandor mechanical 20 19 amusement device required to be registered as provided in 20 20 section99B.10, subsection 1, paragraph "f"99B.53. 20 21 Sec. 23. Section 99B.10D, Code 2015, is amended to read as 20 22 follows: 20 23 99B.10D Electricalandor mechanical amusement devices == 20 24 special fund. 20 25 Fees collected by the department pursuant to sections 20 2699B.10 and99B.10A and 99B.53 shall be deposited in a special 20 27 fund created in the state treasury. Moneys in the fund are 20 28 appropriated to the department of inspections and appeals 20 29 and the department of public safety for administration and 20 30 enforcement ofsections 99B.10, 99B.10A, 99B.10B, and 99B.10C20 31 this subchapter, including employment of necessary personnel. 20 32 The distribution of moneys in the fund to the department of 20 33 inspections and appeals and the department of public safety 20 34 shall be pursuant to a written policy agreed upon by the 20 35 departments. Notwithstanding section 12C.7, subsection 2, 21 1 interest or earnings on moneys deposited in the fund shall be 21 2 credited to the fund. Notwithstanding section 8.33, moneys 21 3 remaining in the fund at the end of a fiscal year shall not 21 4 revert to the general fund of the state. 21 5 Sec. 24. Section 99B.11, Code 2015, is amended to read as 21 6 follows: 21 7 99B.11 Bona fide contests. 21 8 1.It is lawful for aA persontomay conduct, without a 21 9 license, any of the contests specified in subsection 2, andto 21 10may offer and pay awards to persons winning in those contests 21 11 whether or not entry fees, participation fees, or other charges 21 12 are assessed against or collected from the participants,but 21 13 onlyif all of the following requirements arecomplied with 21 14met: 21 15 a.The contest is not held at an amusement concession.21 16b.NoA gambling device is not used in conjunction with, or 21 17 incident to the contest. 21 18c.b. The contest is not conducted in whole or in part 21 19 on or in any property subject to chapter 297, relating to 21 20 schoolhouses and schoolhouse sites, unless the contest and the 21 21 person conducting the contest has the express written approval 21 22 of the governing body of that school district. 21 23d.c. The contest is conducted in a fair and honest manner. 21 24 d. A contest shall not be designed or adapted to permit the 21 25 operator of the contest to prevent a participant from winning 21 26 or to predetermine who the winner will be, and the. 21 27 e. The object of the contest must be attainable and possible 21 28 to perform under the rules stated. 21 29 f. If the contest is a tournament, the tournament operator 21 30 shall prominently display all tournament rules. 21 31 2. A contest, including a contest in a league or tournament, 21 32 isnotlawfulunlessonly if itisfalls into one of the 21 33 followingcontestsevent categories: 21 34 a. Athletic or sporting events.Athletic or sporting 21 35 contests, leagues or tournaments,Events in this category 22 1 include basketball, volleyball, football, baseball, softball, 22 2 soccer, wrestling, swimming, track and field, racquetball, 22 3 tennis, squash, badminton, table tennis, rodeos, horse shows, 22 4 golf, bowling, trap or skeet shoots, fly casting, tractor 22 5 pulling, rifle, pistol, musket, or muzzle=loader shooting,pool 22 6billiards, darts, archery, andhorseshoe contests, leagues, or 22 7 tournamentshorseshoes. 22 8 b. Racing and skill=type events.HorseEvents in this 22 9 category include horse races, harness racing, ski, airplane, 22 10 snowmobile, raft, boat, bicycle, and motor vehicle races. 22 11 c. Arts and crafts=type events.Contests or exhibitions 22 12 ofEvents in this category include cooking, horticulture, 22 13 livestock, poultry, fish or other animals, artwork, hobbywork 22 14or, and craftwork, except those prohibited by chapter 717A. 22 15 d. Card game=type and board game=type events.Cribbage, 22 16Events in this category include cribbage, bridge, euchre, 22 17 chess, checkers, dominoes, and pinochleand similar contests, 22 18 leagues or tournaments.The provisions of this paragraph are 22 19 retroactive to August 15, 1975.22 20 e. Trivia and trading card events. 22 21 f. Video game=type and video sporting=type events.A video 22 22 machine golf tournament game which is an interactive bona fide 22 23 contest. A player operates a video machine golf tournament 22 24 game with a trackball assembly which acts as the golfer's swing 22 25 and determines the results of play and tournament scores. A 22 26 video machine golf tournament game is capable of receiving 22 27 program and data information from an off=site location. A 22 28 tournament operator shall prominently display all tournament 22 29 rules.Events in this category include pinball games, video 22 30 games, and video machine golf tournament games, where skill 22 31 is the predominant factor in determining the result of play 22 32 and tournament scores. To be lawful, a player shall operate a 22 33 video machine with a device which directly impacts the results 22 34 of the game. 22 35 3. A poker, blackjack, craps, keno, or roulette contest, 23 1 league, or tournament shall not be considered a bona fide 23 2 contest under this section. 23 3 Sec. 25. NEW SECTION. 99B.11A Definitions. 23 4 As used in this subchapter and subchapter III, unless the 23 5 context otherwise requires: 23 6 1. "Electronic bingo equipment" means an electronic device 23 7 that assists an individual with a disability in the use of a 23 8 bingo card during a bingo game. 23 9 2. "Large raffle" means a raffle where the cumulative value 23 10 of cash and prizes is more than ten thousand dollars but not 23 11 more than one hundred thousand dollars. 23 12 3. "Small raffle" means a raffle where the cumulative value 23 13 of cash and prizes is more than one thousand dollars but not 23 14 more than ten thousand dollars. 23 15 4. "Very large raffle" means a raffle where the cumulative 23 16 value of cash and prizes is more than one hundred thousand 23 17 dollars but not more than two hundred thousand dollars or the 23 18 prize is real property. 23 19 5. "Very small raffle" means a raffle where the cumulative 23 20 value of the cash prize or prizes is one thousand dollars or 23 21 less and the value of all entries sold is one thousand dollars 23 22 or less, or the cumulative value of the donated merchandise 23 23 prize or prizes is five thousand dollars or less and the value 23 24 of all entries sold is five thousand dollars or less. 23 25 Sec. 26. Section 99B.12, Code 2015, is amended by striking 23 26 the section and inserting in lieu thereof the following: 23 27 99B.12 Social gambling between individuals. 23 28 1. An individual may participate in social gambling if, 23 29 subject to the requirements of section 99B.42, all of the 23 30 following requirements are met: 23 31 a. The gambling is not participated in, either wholly or in 23 32 part, on or in any schoolhouses, schoolhouse sites, or other 23 33 property subject to chapter 297. 23 34 b. All participants in the gambling are individuals. 23 35 c. A person shall not participate in any wager, bet, or 24 1 pool which relates to an athletic event or contest and which 24 2 is authorized or sponsored by one or more schools, educational 24 3 institutions, or interscholastic athletic organizations, if 24 4 the person is a coach, official, player, or contestant in the 24 5 athletic event or contest. 24 6 d. In any game requiring a dealer or operator, the 24 7 participants must have the option to take their turn at dealing 24 8 or operating the game in a regular order according to the 24 9 standard rules of the game. 24 10 2. Social gambling allowed under this section is limited to 24 11 any of the following: 24 12 a. Games of skill and games of chance, except casino=style 24 13 games other than poker. 24 14 b. Wagers or bets between two or more individuals who are 24 15 physically in the presence of each other with respect to any 24 16 of the following: 24 17 (1) A contest specified in section 99B.11, except that no 24 18 individual shall win or lose more than a total of two hundred 24 19 dollars or equivalent consideration in one or more contests at 24 20 any time during any period of twenty=four consecutive hours or 24 21 over that entire period. 24 22 (2) Any other event or outcome which does not depend upon 24 23 gambling or the use of a gambling device that is unlawful in 24 24 this state. 24 25 Sec. 27. NEW SECTION. 99B.12B Qualified organization 24 26 licenses == general provisions == types of licenses. 24 27 1. General provisions. 24 28 a. A qualified organization shall submit an application for 24 29 a license, along with any required fees, to the department at 24 30 least thirty days in advance of the beginning of the gambling 24 31 activity, including the sale of entries or promotion of the 24 32 sale of entries for raffles. 24 33 b. For purposes of this section, a license is deemed to be 24 34 issued on the first day of the period for which the license is 24 35 issued. 25 1 c. An applicant that has not submitted an annual report 25 2 required pursuant to section 99B.16A shall submit such report 25 3 prior to approval of the application. 25 4 d. A license shall not be issued to an applicant whose 25 5 previous license issued under this chapter or chapter 123 has 25 6 been revoked until the period of revocation or revocations has 25 7 elapsed. 25 8 e. The license fee is not refundable. 25 9 2. Two=year qualified organization license. 25 10 a. The license fee for a two=year qualified organization 25 11 license is one hundred fifty dollars. 25 12 b. An applicant for a license under this subsection shall 25 13 be a qualified organization that has been in existence for at 25 14 least five years, or is a local chapter or an affiliate of a 25 15 national tax=exempt organization that has been in existence 25 16 for at least two years and has provided written authorization 25 17 from the national organization to the department. The national 25 18 tax=exempt organization shall be exempt from federal income 25 19 taxes as described in section 99B.1, subsection 25, paragraph 25 20 "a", and have been in existence at least five years. 25 21 c. A qualified organization issued a two=year qualified 25 22 organization license may conduct the following activities: 25 23 (1) Unlimited games of skill or games of chance except for 25 24 bingo. 25 25 (2) An unlimited number of very small raffles and an 25 26 unlimited number of small raffles, including electronic 25 27 raffles. 25 28 (3) One large raffle, including an electronic raffle, 25 29 each calendar year during the two=year period, subject to the 25 30 requirements of section 99B.24. 25 31 (4) Up to three bingo occasions per week and up to fifteen 25 32 bingo occasions per month. 25 33 (5) One game night each calendar year during the two=year 25 34 period, subject to the requirements of section 99B.26. 25 35 3. One=year qualified organization raffle license. 26 1 a. The license fee for a one=year qualified organization 26 2 raffle license is one hundred fifty dollars. 26 3 b. A qualified organization issued a one=year qualified 26 4 organization raffle license may conduct the following 26 5 activities: 26 6 (1) An unlimited number of very small raffles and an 26 7 unlimited number of small raffles. 26 8 (2) Up to eight large raffles with each large raffle 26 9 conducted in a different county during the one=year period, 26 10 subject to the requirements of section 99B.24. 26 11 (3) One game night during the one=year period, subject to 26 12 the requirements of section 99B.26. 26 13 4. One hundred eighty=day qualified organization raffle 26 14 license. 26 15 a. The license fee for a one hundred eighty=day qualified 26 16 organization raffle license is seventy=five dollars. 26 17 b. A qualified organization issued a one hundred eighty=day 26 18 qualified organization raffle license may conduct the following 26 19 activities: 26 20 (1) An unlimited number of very small raffles and an 26 21 unlimited number of small raffles. 26 22 (2) One large raffle during the period of one hundred eighty 26 23 days, subject to the requirements of section 99B.24. 26 24 (3) One game night during the period of one hundred eighty 26 25 days, subject to the requirements of section 99B.26. 26 26 5. Ninety=day qualified organization raffle license. 26 27 a. The license fee for a ninety=day qualified organization 26 28 raffle license is forty dollars. 26 29 b. A qualified organization issued a ninety=day qualified 26 30 organization raffle license may conduct the following 26 31 activities: 26 32 (1) An unlimited number of very small raffles and an 26 33 unlimited number of small raffles. 26 34 (2) One large raffle during the period of ninety days, 26 35 subject to the requirements of section 99B.24. 27 1 (3) One game night during the period of ninety days, subject 27 2 to the requirements of section 99B.26. 27 3 6. Fourteen=day qualified organization license. 27 4 a. The license fee for a fourteen=day qualified organization 27 5 license is fifteen dollars. 27 6 b. A qualified organization issued a fourteen=day qualified 27 7 organization license may conduct the following activities: 27 8 (1) Unlimited games of skill or games of chance except for 27 9 bingo. 27 10 (2) An unlimited number of very small raffles and an 27 11 unlimited number of small raffles. 27 12 (3) One large raffle during the period of fourteen days, 27 13 subject to the requirements of section 99B.24. 27 14 (4) Two bingo occasions during the period of fourteen days 27 15 with no limit on the number of bingo games or the number of 27 16 hours played during each designated bingo day. Bingo occasions 27 17 conducted pursuant to a fourteen=day qualified organization 27 18 license do not count toward the fifteen bingo occasions per 27 19 month authorized for a two=year qualified organization license. 27 20 (5) One game night during the period of fourteen days, 27 21 subject to the requirements of section 99B.26. 27 22 7. Qualified organizations == school provisions. A school 27 23 district or a public or nonpublic school may be issued a 27 24 qualified organization license under this section subject to 27 25 the following additional restrictions: 27 26 a. The application for a license shall be authorized by 27 27 the board of directors of a school district for public schools 27 28 within that district, or the policymaking body of a nonpublic 27 29 school for a nonpublic school. 27 30 b. Activities authorized by the license may be held at 27 31 bona fide school functions such as carnivals, fall festivals, 27 32 bazaars, and similar events. 27 33 c. Each school shall obtain a license pursuant to this 27 34 section prior to permitting the games or activities on the 27 35 premises of that school. 28 1 d. The board of directors of a public school district 28 2 may also be issued a license under this section. A board 28 3 of directors of a public school district shall not spend or 28 4 authorize the expenditure of public funds for the purpose of 28 5 purchasing a license. 28 6 e. Upon written approval by the board of directors of a 28 7 school district for public schools within that district or 28 8 the policymaking body of a nonpublic school, the license may 28 9 be used by any school group or parent support group in the 28 10 district or at the nonpublic school to conduct activities 28 11 authorized by this section. The board of directors or 28 12 policymaking body shall not authorize a school group or parent 28 13 support group to use the license to conduct more than two 28 14 events in a calendar year. 28 15 8. Qualified organizations == miscellaneous provisions. A 28 16 political party or party organization may contract with other 28 17 qualified organizations to conduct the games of skill, games 28 18 of chance, and raffles which may lawfully be conducted by the 28 19 political party or party organization. A licensed qualified 28 20 organization may promote the games of skill, games of chance, 28 21 and raffles which it may lawfully conduct. 28 22 Sec. 28. NEW SECTION. 99B.13A Licensed qualified 28 23 organizations == general requirements. 28 24 A qualified organization licensed pursuant to section 28 25 99B.12B shall, as a condition of licensure under section 28 26 99B.12B, comply with the requirements of this section. 28 27 1. Authorized gambling activities == display of license. A 28 28 licensed qualified organization may only conduct gambling 28 29 activities as authorized by the license and shall prominently 28 30 display the license in the playing area where the gambling 28 31 activities are conducted. 28 32 2. Location requirements. 28 33 a. Gambling activities, as authorized by the type of 28 34 license, may be conducted on premises owned, leased, or rented 28 35 by the licensee. The amount imposed and collected for rental 29 1 or lease of such premises shall not be a percentage of, or 29 2 otherwise related to, the amount of the receipts for the 29 3 authorized gambling activities. 29 4 b. A gambling activity shall not take place on a gaming 29 5 floor, as defined in section 99F.1, licensed by the state 29 6 racing and gaming commission created in section 99D.5. 29 7 3. Participation requirements. 29 8 a. A person shall not receive or have any fixed or 29 9 contingent right to receive, directly or indirectly, any 29 10 profit, remuneration, or compensation from or related to a 29 11 gambling activity conducted by a licensee, except any amount 29 12 which the person may win as a participant on the same basis as 29 13 the other participants. 29 14 b. The price to participate in a gambling activity, 29 15 including any discounts for the gambling activity, shall be the 29 16 same for each participant during the course of the gambling 29 17 activity. 29 18 c. The person conducting the gambling activity shall not 29 19 participate in the game. 29 20 4. Gambling activity requirements. 29 21 a. A gambling activity shall not be operated on a build=up 29 22 or pyramid basis. 29 23 b. Bookmaking shall not be allowed. 29 24 c. Concealed numbers or conversion charts shall not be used 29 25 in conducting any gambling activity. 29 26 d. A gambling activity shall not be adapted with any control 29 27 device to permit manipulation of the gambling activity by 29 28 the operator in order to prevent a player from winning or to 29 29 predetermine who the winner will be. 29 30 e. The object of the gambling activity must be attainable 29 31 and possible to perform under the rules stated from the playing 29 32 position of the player. 29 33 f. The gambling activity shall be conducted in a fair and 29 34 honest manner. 29 35 g. Rules for each gambling activity shall be posted. 30 1 h. Casino=style games shall only be allowed during a game 30 2 night as specified under section 99B.26 or during card game 30 3 tournaments under section 99B.7B. 30 4 Sec. 29. Section 99B.14, Code 2015, is amended to read as 30 5 follows: 30 6 99B.14 License denial, suspension, and revocation. 30 7 1. The department may deny, suspend, or revoke a license 30 8 if the department finds that an applicant, licensee, or an 30 9 agent of the licensee violated or permitted a violation of 30 10 a provision of this chapter or a departmental rule adopted 30 11 pursuant to chapter 17A, or for any other cause for which 30 12 the director of the department would be or would have 30 13 been justified in refusing to issue a license, or upon the 30 14 conviction of a person of a violation of this chapter or a 30 15 rule adopted under this chapter which occurred on the licensed 30 16 premises. However, the denial, suspension, or revocation of 30 17 one type of gambling license does not require, but may result 30 18 in, the denial, suspension, or revocation of a different type 30 19 of gambling license held by the same licensee.In addition, a30 20 2. A person whose license is revoked under this section who 30 21 is a person forwhichwhom a class "A", class "B", class "C", 30 22 or class "D" liquor control license has been issued pursuant 30 23 to chapter 123 shall have the person's liquor control license 30 24 suspended for a period of fourteen days in the same manner as 30 25 provided in section 123.50, subsection 3, paragraph "a".In 30 26 addition, a30 27 3. A person whose license is revoked under this section 30 28 who is a person forwhichwhom only a class "B" or class "C" 30 29 beer permit has been issued pursuant to chapter 123 shall have 30 30 the person's class "B" or class "C" beer permit suspended for 30 31 a period of fourteen days in the same manner as provided in 30 32 section 123.50, subsection 3, paragraph "a". 30 332.4. The process for denial, suspension, or revocation 30 34 of a license shall commence by delivering to the applicant 30 35 or licenseeby certified mail, return receipt requested, or 31 1 by personal service anotice, by means authorized by section 31 2 17A.18, setting forth the particular reasons for such action. 31 3 a. If a written request for a hearing is not received within 31 4 thirty days afterthe mailing or service ofthe delivery of 31 5 notice as provided in this subsection, the denial, suspension, 31 6 or revocation of a license shall become effective pending a 31 7 final determination by the department. The determination 31 8 involved in the notice may be affirmed, modified, or set aside 31 9 by the department in a written decision. 31 10 b. If a request for a hearing is timely received by the 31 11 department, the applicant or licensee shall be given an 31 12 opportunity for a prompt and fair hearing before the department 31 13 and the denial, suspension, or revocation shall be deemed 31 14 suspended until the department makes a final determination. 31 15 However, the director may suspend a license prior to a hearing 31 16 if the director finds that the public integrity of the licensed 31 17 activity is compromised or there is a risk to public health, 31 18 safety, or welfare. In addition, at any time during or prior 31 19 to the hearing the department may rescind the notice of the 31 20 denial, suspension, or revocation upon being satisfied that the 31 21 reasons for the denial, suspension, or revocation have been 31 22 or will be removed. On the basis of any such hearing, the 31 23 determination involved in the notice may be affirmed, modified, 31 24 or set aside by the department in a written decision. 31 253.5. A copy of the final decision of the department shall 31 26 be sent by electronic mail or certified mail, with return 31 27 receipt requested, or served personally upon the applicant 31 28 or licensee. The applicant or licensee may seek judicial 31 29 review in accordance with the terms of the Iowa administrative 31 30 procedure Act, chapter 17A. 31 314.6. The procedure governing hearings authorized by this 31 32 section shall be in accordance with the rules promulgated by 31 33 the department and chapter 17A. 31 345.7. If the department finds cause for denial of a 31 35 license, the applicant may not reapply for the same license 32 1 for a period of two years. If the department finds cause 32 2 for suspension, the license shall be suspended for a period 32 3 determined by the department. If the department finds cause 32 4 for revocation, the license shall be revoked for a period not 32 5 to exceed two years. 32 6 Sec. 30. NEW SECTION. 99B.14A Distribution of proceeds == 32 7 licensed qualified organizations. 32 8 1. A licensed qualified organization shall certify 32 9 that the receipts from all charitable gambling conducted 32 10 by the organization under this chapter, less reasonable 32 11 expenses, charges, fees, taxes, and deductions, either will 32 12 be distributed as prizes to participants or will be dedicated 32 13 and distributed for educational, civic, public, charitable, 32 14 patriotic, or religious uses. Reasonable expenses, charges, 32 15 fees, taxes other than the state and local sales tax, and 32 16 deductions allowed by the department shall not exceed forty 32 17 percent of net receipts. 32 18 2. A licensed qualified organization shall dedicate and 32 19 distribute the balance of the net receipts received within 32 20 a calendar year and remaining after deduction of reasonable 32 21 expenses, charges, fees, taxes, and deductions allowed by 32 22 this chapter, before the annual report required under section 32 23 99B.16A is due. 32 24 a. A person desiring to hold the net receipts for a period 32 25 longer than permitted under this subsection shall apply to the 32 26 department for special permission and upon good cause shown the 32 27 department may grant the request. 32 28 b. If permission is granted to hold the net receipts, 32 29 the person shall, as a part of the annual report required by 32 30 section 99B.16A, report the amount of money being held and all 32 31 expenditures of the funds. This report shall be filed even if 32 32 the person no longer holds a gambling license. 32 33 3. Proceeds coming into the possession of a person under 32 34 this section are deemed to be held in trust for payment 32 35 of expenses and dedication to educational, civic, public, 33 1 charitable, patriotic, or religious uses as required by this 33 2 section. 33 3 4. A licensed qualified organization or agent of the 33 4 organization who willfully fails to dedicate the required 33 5 amount of proceeds to educational, civic, public, charitable, 33 6 patriotic, or religious uses as required by this section 33 7 commits a fraudulent practice under chapter 714. 33 8 5. Proceeds distributed to another charitable organization 33 9 to satisfy the sixty percent dedication requirement shall not 33 10 be used by the donee to pay any expenses in connection with the 33 11 conducting of any gambling activity by the donor organization, 33 12 or for any use that would not constitute a valid dedication 33 13 under this section. 33 14 Sec. 31. Section 99B.15, Code 2015, is amended by striking 33 15 the section and inserting in lieu thereof the following: 33 16 99B.15 Penalties. 33 17 In addition to any other penalty specified in this chapter, 33 18 the following penalties shall apply: 33 19 1. A person who knowingly fails to comply with the 33 20 requirements of this chapter and the rules adopted pursuant to 33 21 chapter 17A commits a serious misdemeanor. 33 22 2. A person who intentionally files a false or fraudulent 33 23 report or application as required by this chapter commits a 33 24 fraudulent practice under chapter 714. 33 25 Sec. 32. NEW SECTION. 99B.15A Prizes awarded by licensed 33 26 qualified organizations. 33 27 1. Unless otherwise provided, a prize awarded by a licensed 33 28 qualified organization shall comply with the following 33 29 requirements: 33 30 a. Only merchandise prizes whose value does not exceed ten 33 31 thousand dollars may be awarded for games of skill and games 33 32 of chance. If a prize consists of more than one item, unit, or 33 33 part, the aggregate value of all items, units, or parts shall 33 34 not exceed ten thousand dollars. 33 35 b. A merchandise prize shall not be repurchased. 34 1 c. No prize shall be displayed which cannot be won. 34 2 d. A cash prize may only be awarded in bingo and raffles. 34 3 e. A prize shall be distributed on the day the prize is won, 34 4 except that if the winner is not present, notification to the 34 5 winner shall be made as soon as practical. 34 6 2. A licensed qualified organization awarding a prize 34 7 for bingo is subject to the restrictions provided in section 34 8 99B.21A. A licensed qualified organization awarding a prize 34 9 for a raffle is subject to the restrictions provided in section 34 10 99B.24. 34 11 Sec. 33. NEW SECTION. 99B.16A Records and reports == 34 12 licensed qualified organization. 34 13 1. A qualified organization licensed pursuant to section 34 14 99B.12B, unless otherwise provided, shall maintain proper 34 15 books of account and records showing, in addition to any other 34 16 information required by the department, the following: 34 17 a. Gross receipts and the amount of the gross receipts 34 18 taxes collected or accrued with respect to gambling activities 34 19 conducted by the licensed qualified organization. 34 20 b. All expenses, charges, fees, and other deductions. 34 21 c. The cash amounts, or the cost to the licensee of goods 34 22 or other noncash valuables, distributed to participants in the 34 23 licensed activity. 34 24 d. The amounts dedicated and the date and name and address 34 25 of each person to whom distributed. 34 26 2. The books of account and records shall be made available 34 27 to the department or a law enforcement agency for inspection at 34 28 reasonable times, with or without notice. A failure to permit 34 29 inspection is a serious misdemeanor. 34 30 3. A licensed qualified organization required to maintain 34 31 records shall submit an annual report to the department on 34 32 forms furnished by the department. The annual report shall be 34 33 submitted by January 31 of each year for the prior calendar 34 34 year period of January 1 through December 31. 34 35 Sec. 34. Section 99B.17, Code 2015, is amended by striking 35 1 the section and inserting in lieu thereof the following: 35 2 99B.17 Allowable forms for payment. 35 3 1. Social gambling, registered amusement devices, and 35 4 amusement concessions not at a permanent location, require 35 5 payment solely by cash. 35 6 2. Except as provided by subsection 1, a participant in 35 7 an activity authorized by this chapter may make payment by 35 8 cash, personal check, money order, bank check, cashier's check, 35 9 electronic check, or debit card. 35 10 3. The department shall adopt rules setting minimum 35 11 standards to ensure compliance with applicable federal law and 35 12 for the protection of personal information consistent with 35 13 payment card industry compliance regulations. 35 14 Sec. 35. Section 99B.21, Code 2015, is amended to read as 35 15 follows: 35 16 99B.21 Tax on prizes. 35 17 All prizes awarded pursuant to a gambling activity under 35 18 this chapter are Iowa earned income and are subject to state 35 19 and federal income tax laws. A person conducting a game of 35 20 skill, game of chance, bingo, or a raffle shall deduct state 35 21 income taxes, pursuant to section 422.16, subsection 1, from a 35 22 cash prize awarded to an individual. An amount deducted from 35 23 the prize for payment of a state tax shall be remitted to the 35 24 department of revenue on behalf of the prize winner. 35 25 Sec. 36. NEW SECTION. 99B.21A Bingo. 35 26 A licensed qualified organization shall comply with the 35 27 requirements of this section for the purposes of conducting 35 28 bingo at a bingo occasion. 35 29 1. Operational requirements. 35 30 a. A bingo occasion shall not last for longer than four 35 31 consecutive hours. 35 32 b. Only one licensed qualified organization may conduct 35 33 bingo occasions within the same structure or building. 35 34 c. A licensed qualified organization shall not conduct or 35 35 offer free bingo games. 36 1 d. A licensed qualified organization shall not conduct bingo 36 2 within a building or structure that is licensed pursuant to 36 3 chapter 99D or 99F. 36 4 2. Prize requirements. 36 5 a. A cash or merchandise prize may be awarded in the game of 36 6 bingo. 36 7 b. A cash prize shall not exceed two hundred fifty dollars 36 8 per game of bingo. 36 9 c. A merchandise prize may be awarded in the game of bingo, 36 10 but the actual retail value of the prize, or if the prize 36 11 consists of more than one item, unit, or part, the aggregate 36 12 retail value of all items, units, or parts, shall not exceed 36 13 two hundred fifty dollars in value. 36 14 d. A jackpot bingo game may be conducted twice during any 36 15 twenty=four=hour period in which the prize may begin at not 36 16 more than five hundred dollars in cash or actual retail value 36 17 of merchandise prizes and may be increased by not more than two 36 18 hundred dollars after each bingo occasion to a maximum prize 36 19 of one thousand dollars for the first jackpot bingo game and 36 20 two thousand five hundred dollars for the second jackpot bingo 36 21 game. 36 22 3. Equipment requirements. 36 23 a. A licensed qualified organization conducting bingo shall 36 24 purchase bingo equipment and supplies only from a manufacturer 36 25 or distributor licensed by the department. 36 26 b. A licensed qualified organization may lease electronic 36 27 bingo equipment from a manufacturer or distributor licensed 36 28 by the department for the purposes of aiding individuals with 36 29 disabilities during a bingo occasion. 36 30 4. Accounting requirements. A qualified organization 36 31 conducting bingo occasions under a two=year qualified 36 32 organization license and expecting annual gross receipts of 36 33 more than ten thousand dollars shall establish and maintain one 36 34 regular checking account designated the "bingo account" and may 36 35 also maintain one or more interest=bearing savings accounts 37 1 designated as "bingo savings account". The accounts shall be 37 2 maintained in a financial institution in Iowa. 37 3 a. Funds derived from the conduct of bingo, less the 37 4 amount awarded as cash prizes, shall be deposited in the bingo 37 5 account. 37 6 (1) No other funds except limited funds of the organization 37 7 deposited to pay initial or unexpected emergency expenses shall 37 8 be deposited in the bingo account. 37 9 (2) Deposits shall be made no later than the next business 37 10 day following the day of the bingo occasion on which the 37 11 receipts were obtained. 37 12 b. Payments shall be paid from the bingo account only for 37 13 the following purposes: 37 14 (1) The payment of reasonable expenses permitted under 37 15 section 99B.14A, subsection 1, incurred and paid in connection 37 16 with the conduct of bingo. 37 17 (2) The disbursement of net proceeds derived from the 37 18 conduct of bingo for educational, civic, public, charitable, 37 19 patriotic, or religious uses as required by section 99B.14A, 37 20 subsection 1. 37 21 (3) The transfer of net proceeds derived from the conduct 37 22 of bingo to a bingo savings account pending disbursement for 37 23 educational, civic, public, charitable, patriotic, or religious 37 24 uses. 37 25 (4) To withdraw initial or emergency funds deposited under 37 26 paragraph "a". 37 27 (5) To pay prizes if the qualified organization decides to 37 28 pay prizes by check rather than cash. 37 29 c. Except as permitted by paragraph "a", gross receipts 37 30 derived from the conduct of bingo shall not be commingled with 37 31 other funds of the licensed qualified organization. Except as 37 32 permitted by paragraph "b", subparagraphs (3) and (4), gross 37 33 receipts shall not be transferred to another account maintained 37 34 by the licensed qualified organization. 37 35 Sec. 37. NEW SECTION. 99B.24 Raffles. 38 1 1. General provisions. A licensed qualified organization 38 2 may conduct a raffle as permitted by the applicable license and 38 3 in accordance with the following requirements: 38 4 a. The winner of a raffle shall not be required to be 38 5 present to win. 38 6 b. If the winner is not present to win, notification to the 38 7 winner shall be made as soon as practical. 38 8 c. A cash or merchandise prize may be awarded in a raffle. 38 9 If a merchandise prize is awarded, the actual retail value of 38 10 the prize, or if the prize consists of more than one item, 38 11 unit, or part, the aggregate retail value of all items, units, 38 12 or parts, shall not exceed the maximum value allowed for that 38 13 raffle. 38 14 d. Calendar raffles and build=up or pyramid raffles are 38 15 prohibited. 38 16 e. If a raffle is conducted at a fair, the licensed 38 17 qualified organization shall receive written permission from 38 18 the sponsor of the fair to conduct the raffle. 38 19 f. A licensed qualified organization shall, regardless of 38 20 the number of licenses issued, only conduct one large raffle 38 21 per calendar year. However, a licensed qualified organization 38 22 issued a one=year qualified organization raffle license may 38 23 conduct up to eight large raffles with each large raffle 38 24 conducted in a different county during the one=year period. 38 25 2. Very large raffles. A licensed qualified organization 38 26 may conduct one very large raffle per calendar year subject to 38 27 the provisions of this subsection. 38 28 a. The licensed qualified organization shall submit a very 38 29 large raffle license application and a fee of one hundred 38 30 dollars to the department and be issued a license. 38 31 b. The licensed qualified organization shall prominently 38 32 display the license at the drawing area of the raffle. 38 33 c. If the raffle prize is real property, the real property 38 34 shall be acquired by gift or donation or shall have been owned 38 35 by the licensed qualified organization for a period of at least 39 1 five years. 39 2 d. The department shall conduct a special audit of a 39 3 very large raffle to verify compliance with the applicable 39 4 requirements of this chapter concerning raffles and very large 39 5 raffles. 39 6 e. The licensed qualified organization shall submit to the 39 7 department within sixty days of the very large raffle drawing a 39 8 cumulative report for the raffle on a form determined by the 39 9 department and one percent of the gross receipts from the very 39 10 large raffle. The one percent of the gross receipts shall be 39 11 retained by the department to pay for the cost of the special 39 12 audit. 39 13 3. Very small raffles. A qualified organization may conduct 39 14 one very small raffle per calendar year without obtaining a 39 15 qualified organization license. A qualified organization 39 16 conducting a very small raffle as authorized by this subsection 39 17 shall comply with the requirements for conducting a raffle 39 18 by a licensed qualified organization, including payment of 39 19 applicable sales tax. However, a qualified organization 39 20 holding only one very small raffle per calendar year shall be 39 21 exempt from the reporting requirements in section 99B.16A. 39 22 Sec. 38. NEW SECTION. 99B.25 Electronic raffles. 39 23 1. A qualified organization with a two=year qualified 39 24 organization license may conduct a raffle using an electronic 39 25 raffle system, if the qualified organization complies with the 39 26 requirements of section 99B.24 and this section. 39 27 2. The licensed qualified organization shall only use 39 28 an electronic raffle system purchased from a manufacturer or 39 29 distributor licensed pursuant to section 99B.7A and certified 39 30 by an entity approved by the department. The electronic raffle 39 31 system may include stationary and portable or wireless raffle 39 32 sales units. 39 33 3. A licensed qualified organization shall hold only one 39 34 raffle using an electronic raffle system per calendar day. A 39 35 licensed qualified organization shall not hold a very large 40 1 raffle using an electronic raffle system and may hold only one 40 2 large raffle using an electronic raffle system per calendar 40 3 year. A large raffle conducted using an electronic raffle 40 4 system counts toward the limit of one large raffle per calendar 40 5 year under section 99B.24, subsection 1, paragraph "f". 40 6 4. Except for a large raffle conducted using an electronic 40 7 raffle system, the prize for an electronic raffle shall be 40 8 limited to the amount allowed for a small raffle. 40 9 5. Entries for a raffle using an electronic raffle system 40 10 shall not be preprinted and shall be provided to the purchaser 40 11 at the time of sale. 40 12 6. The electronic raffle receipt shall contain the 40 13 following information: 40 14 a. The name of the licensed qualified organization. 40 15 b. The license identification number of the qualified 40 16 organization. 40 17 c. The location, date, and time of the corresponding raffle 40 18 drawing. 40 19 d. The unique printed entry number, or multiple entry 40 20 numbers, of the raffle entry. 40 21 e. The price of the raffle entry. 40 22 f. An explanation of the prize to be awarded. 40 23 g. The statement, "Need not be present to win", and the 40 24 contact information, including name, telephone number, and 40 25 electronic mail address, of the individual from the qualified 40 26 organization responsible for prize disbursements. 40 27 h. The date by which the prize shall be claimed which shall 40 28 be no fewer than fourteen days following the drawing. 40 29 7. Each electronic raffle entry shall reflect a single 40 30 unique printed entry number on the entry. 40 31 8. The licensed qualified organization shall use a manual 40 32 draw procedure for the electronic raffle which ensures a draw 40 33 number is randomly selected as a winner from the entries sold. 40 34 a. The winning entry shall be verified as a sold and valid 40 35 entry prior to awarding the prize. 41 1 b. The drawing of the winning entry shall be done in such 41 2 manner as to allow the purchasers to observe the drawing. 41 3 9. If the prize is not claimed, the licensed qualified 41 4 organization shall donate the unclaimed prize to an 41 5 educational, civic, public, charitable, patriotic, or religious 41 6 use. 41 7 10. The department may determine any other requirements for 41 8 conducting an electronic raffle by rule. 41 9 Sec. 39. NEW SECTION. 99B.26 Game nights. 41 10 1. A licensed qualified organization may conduct one game 41 11 night per calendar year subject to the provisions of this 41 12 section. 41 13 2. A licensed qualified organization conducting a game 41 14 night may do any of the following during the game night: 41 15 a. Charge an entrance fee or a fee to participate in the 41 16 games. 41 17 b. Award cash or merchandise prizes in any games of 41 18 skill, games of chance, casino=style games, or card games in 41 19 an aggregate amount not to exceed ten thousand dollars and 41 20 no participant shall win more than a total of five thousand 41 21 dollars. 41 22 c. Allow participants at the game night that do not have 41 23 a bona fide social relationship with the sponsor of the game 41 24 night. 41 25 d. Allow participants to wager their own funds and pay an 41 26 entrance or other fee for participation, but participants shall 41 27 not be allowed to expend more than a total of two hundred fifty 41 28 dollars for all fees and wagers. 41 29 3. Except as provided by section 99B.62, a person or 41 30 organization that has not been issued a qualified organization 41 31 license under section 99B.12B shall not be authorized to 41 32 conduct a game night as authorized by this section. 41 33 Sec. 40. NEW SECTION. 99B.41 Definitions. 41 34 For purposes of this subchapter, unless the context 41 35 otherwise requires: 42 1 1. "Public place" means an indoor or outdoor area, whether 42 2 privately or publicly owned, to which the public has access 42 3 by right or by invitation, expressed or implied, whether by 42 4 payment of money or not, but not a place when used exclusively 42 5 by one or more individuals for a private gathering or other 42 6 personal purpose. 42 7 2. "Social gambling" means an activity in which social games 42 8 are played between individuals for any sum of money or other 42 9 property of any value. 42 10 3. "Social games" or "social game" means card and parlor 42 11 games, including but not limited to poker, pinochle, pitch, gin 42 12 rummy, bridge, euchre, hearts, cribbage, dominoes, checkers, 42 13 chess, backgammon, pool, and darts. "Social games" do not 42 14 include casino=style games, except poker. 42 15 4. "Sports betting pool" or "pool" means a game in which a 42 16 participant wagers money for each chance to win based on the 42 17 outcome of a sports event or series of sports events where the 42 18 competitors in the sports event or series of sports events are 42 19 natural persons. 42 20 Sec. 41. NEW SECTION. 99B.42 Social gambling general 42 21 requirements. 42 22 1. Social gambling is lawful under section 99B.6, 99B.9, or 42 23 99B.12, when all of the following requirements are met: 42 24 a. The gambling occurs between two or more people who are 42 25 together for purposes other than social gambling. A social 42 26 relationship must exist beyond that apparent in the gambling 42 27 situation. 42 28 b. The gambling shall not take place on a gaming floor, 42 29 as defined in section 99F.1, licensed by the state racing and 42 30 gaming commission created in section 99D.5. 42 31 c. Concealed numbers or conversion charts are not used to 42 32 play any game. 42 33 d. A game is not adapted with any control device to permit 42 34 manipulation of the game by the operator in order to prevent a 42 35 player from winning or to predetermine who the winner will be. 43 1 e. The object of the game is attainable and possible to 43 2 perform under the rules stated from the playing position of the 43 3 player. 43 4 f. The game must be conducted in a fair and honest manner. 43 5 g. A person shall not receive or have any fixed or 43 6 contingent right to receive, directly or indirectly, any amount 43 7 wagered or bet or any portion of amounts wagered or bet, except 43 8 an amount which the person wins as a participant while playing 43 9 on the same basis as every other participant. 43 10 h. A cover charge, participation charge, or other charge 43 11 shall not be imposed upon a person for the privilege of 43 12 participating in or observing the social gambling, and a 43 13 rebate, discount, credit, or other method shall not be used 43 14 to discriminate between the charge for the sale of goods 43 15 or services to participants in the social gambling and the 43 16 charge for the sale of goods or services to nonparticipants. 43 17 Satisfaction of an obligation into which a member of an 43 18 organization enters to pay at regular periodic intervals a 43 19 sum fixed by that organization for the maintenance of that 43 20 organization is not a charge which is prohibited by this 43 21 paragraph. 43 22 i. A participant shall not win or lose more than a total 43 23 of two hundred dollars or equivalent consideration in one or 43 24 more games permitted by this subchapter at any time during any 43 25 period of twenty=four consecutive hours or over that entire 43 26 period. 43 27 j. A participant is not participating as an agent of another 43 28 person. 43 29 k. A representative of the department or a law enforcement 43 30 agency is immediately admitted, upon request, to the premises 43 31 with or without advance notice. 43 32 l. A person shall not engage in bookmaking on the premises. 43 33 2. The social gambling licensee is strictly accountable for 43 34 compliance with this section. Proof of an act constituting 43 35 a violation is grounds for revocation of the license issued 44 1 pursuant to section 99B.6 or 99B.9 if the licensee permitted 44 2 the violation to occur when the licensee knew or had reasonable 44 3 cause to know of the act constituting the violation. 44 4 3. A participant in a social game or pool which is not in 44 5 compliance with this section shall only be subject to a penalty 44 6 under section 99B.15 if the participant has knowledge of or 44 7 reason to know the facts constituting the violation. 44 8 4. The social gambling licensee, and every agent of the 44 9 licensee who is required by the licensee to exercise control 44 10 over the use of the premises, who knowingly permits or engages 44 11 in an act or omission which constitutes a violation of this 44 12 subchapter is subject to a penalty under section 99B.15. A 44 13 licensee has knowledge of an act or omission if any agent of 44 14 the licensee has knowledge of the act or omission. 44 15 Sec. 42. NEW SECTION. 99B.51 Definitions. 44 16 As used in this subchapter, unless the context otherwise 44 17 requires: 44 18 1. "Distributor" means a person who owns an electrical or 44 19 mechanical amusement device registered as provided in section 44 20 99B.53 that is offered for use at more than a single location 44 21 or premise. 44 22 2. "Manufacturer" means a person who originally produces, 44 23 or purchases an originally produced amusement device or 44 24 an originally produced motherboard that will be installed 44 25 into, an amusement device required to be registered under 44 26 this subchapter for the purposes of reselling such device or 44 27 motherboard. 44 28 3. "Owner" means a person who owns an operable amusement 44 29 device required to be registered under section 99B.53 at no 44 30 more than a single location or premise. 44 31 Sec. 43. NEW SECTION. 99B.52 Electrical or mechanical 44 32 amusement devices. 44 33 1. A person may own, possess, and offer for use at any 44 34 location an electrical or mechanical amusement device, except 44 35 for an amusement device required to be registered pursuant to 45 1 section 99B.53. If the provisions of this section and other 45 2 applicable provisions of this subchapter are complied with, the 45 3 use of an electrical or mechanical amusement device shall not 45 4 be deemed gambling. All electrical or mechanical amusement 45 5 devices shall comply with this section. 45 6 2. A prize of merchandise not exceeding fifty dollars in 45 7 value shall be awarded for use of an electrical or mechanical 45 8 amusement device. An electrical or mechanical amusement device 45 9 may be designed or adapted to award a prize of one or more 45 10 free games or portions of games without payment of additional 45 11 consideration by the participant. 45 12 3. A prize of cash shall not be awarded for use of an 45 13 electrical or mechanical amusement device. 45 14 4. An amusement device shall not be designed or adapted to 45 15 cause or to enable a person to cause the release of free games 45 16 or portions of games when designated as a potential award for 45 17 use of the device, and shall not contain any meter or other 45 18 measurement device for recording the number of free games or 45 19 portions of games which are awarded. 45 20 5. An amusement device shall not be designed or adapted to 45 21 enable a person using the device to increase the chances of 45 22 winning free games or portions of games by paying more than is 45 23 ordinarily required to play the game. 45 24 6. An award given for the use of an amusement device shall 45 25 only be redeemed on the premises where the device is located 45 26 and only for merchandise sold in the normal course of business 45 27 for the premises. 45 28 7. The department may determine any other requirements 45 29 by rule. Rules adopted pursuant to this section shall be 45 30 formulated in consultation with affected state agencies and 45 31 industry and consumer groups. 45 32 Sec. 44. NEW SECTION. 99B.53 Electrical or mechanical 45 33 amusement devices == registration required. 45 34 1. In addition to the requirements of section 99B.52, 45 35 an electrical or mechanical amusement device in operation 46 1 or distributed in this state that awards a prize where the 46 2 outcome is not primarily determined by skill or knowledge of 46 3 the operator shall be registered by the department as provided 46 4 in this section. 46 5 2. Except as provided in subsection 3, an electrical or 46 6 mechanical amusement device requiring registration may be 46 7 located on premises for which a class "A", class "B", class 46 8 "C", special class "C", or class "D" liquor control license has 46 9 been issued pursuant to chapter 123. 46 10 3. a. An electrical or mechanical amusement device 46 11 requiring registration may be located on premises for which a 46 12 class "B" or class "C" beer permit has been issued pursuant to 46 13 chapter 123, but the department shall not initially register 46 14 an electrical or mechanical amusement device to an owner or 46 15 distributor for a location for which a class "B" or class "C" 46 16 beer permit has been issued pursuant to chapter 123 on or after 46 17 April 28, 2004. 46 18 b. A distributor that owns an amusement device at a location 46 19 for which only a class "B" or class "C" beer permit has been 46 20 issued pursuant to chapter 123 shall not relocate an amusement 46 21 device registered as provided in this section to a location 46 22 other than a location for which a class "A", class "B", class 46 23 "C", special class "C", or class "D" liquor license has been 46 24 issued and shall not transfer, assign, sell, or lease an 46 25 amusement device registered as provided in this section to 46 26 another person for which only a class "B" or class "C" beer 46 27 permit has been issued pursuant to chapter 123 after April 28, 46 28 2004. 46 29 c. If ownership of the location changes, the class "B" 46 30 or class "C" beer permit does not lapse, and the device is 46 31 not removed from the location, the device may remain at the 46 32 location. 46 33 4. An electrical or mechanical amusement device required to 46 34 be registered and at a location for which only a class "B" or 46 35 class "C" beer permit has been issued pursuant to chapter 123 47 1 shall include on the device a security mechanism which prevents 47 2 the device from being operated by a person until action is 47 3 taken by the owner or owner's designee to allow the person to 47 4 operate the device. 47 5 5. No more than four electrical or mechanical amusement 47 6 devices registered as provided in this section shall be 47 7 permitted or offered for use in any single location or premises 47 8 meeting the requirements of this section. 47 9 6. The total number of electrical or mechanical amusement 47 10 devices registered by the department under this section shall 47 11 not exceed six thousand nine hundred twenty=eight. 47 12 7. Each person owning an electrical or mechanical amusement 47 13 device in this state shall submit annually an application 47 14 form designated by the department that shall contain the 47 15 information required by the department by rule and a fee of 47 16 twenty=five dollars for each device required to be registered. 47 17 If approved, the department shall issue an annual registration 47 18 tag. 47 19 8. A new amusement device registration tag shall be 47 20 obtained if electronic or mechanical components have been 47 21 adapted, altered, or replaced and such adaptation, alteration, 47 22 or replacement changes the operational characteristics of 47 23 the amusement device including but not limited to the game 47 24 being changed. The amusement device shall not be placed 47 25 into operation prior to obtaining a new amusement device 47 26 registration tag. 47 27 9. An electrical or mechanical amusement device required 47 28 to be registered under this section shall only be leased or 47 29 purchased from a manufacturer or distributor registered with 47 30 the department under section 99B.10A. 47 31 10. A person owning or leasing an electrical or mechanical 47 32 amusement device required to be registered by this section 47 33 shall display the registration tag as required by rules adopted 47 34 by the department. 47 35 11. A person owning or leasing an electrical or mechanical 48 1 amusement device required to be registered by this section 48 2 shall not allow the electrical or mechanical amusement device 48 3 to be operated or made available for operation with an expired 48 4 registration. 48 5 12. A person or employee of a person owning or leasing 48 6 an electrical or mechanical amusement device required to be 48 7 registered by this section shall not advertise or promote the 48 8 availability of the device to the public as anything other than 48 9 an electrical or mechanical amusement device pursuant to rules 48 10 adopted by the department. 48 11 13. A person owning or leasing an electrical or mechanical 48 12 amusement device required to be registered by this section 48 13 shall not relocate and place into operation an amusement device 48 14 in any location other than a location which has been issued 48 15 an appropriate liquor control license in good standing and to 48 16 which the device has been appropriately registered with the 48 17 department. 48 18 14. A counting mechanism which establishes the volume of 48 19 business of the electrical or mechanical amusement device shall 48 20 be included on each device required to be registered by this 48 21 section. The department and the department of public safety 48 22 shall have immediate access to the information provided by the 48 23 counting mechanism. 48 24 15. An electrical or mechanical amusement device required 48 25 to be registered as provided by this section shall not be a 48 26 gambling device, as defined in section 725.9, or a device that 48 27 plays poker, blackjack, or keno. 48 28 Sec. 45. NEW SECTION. 99B.54 Electrical or mechanical 48 29 amusement devices == criminal penalties. 48 30 1. A person who violates any provision of section 99B.52 or 48 31 99B.53, except as specified in subsection 2, commits a serious 48 32 misdemeanor. 48 33 2. A person who violates any provision of section 99B.52, 48 34 subsection 2 or 6; or section 99B.53, subsection 4, 8, 10, 11, 48 35 12, or 13, shall be subject to the following: 49 1 a. For a first offense under an applicable subsection, the 49 2 person commits a simple misdemeanor, punishable as a scheduled 49 3 violation pursuant to section 805.8C, subsection 4, paragraph 49 4 "b". 49 5 b. For a second or subsequent offense under the same 49 6 applicable subsection, the person commits a serious 49 7 misdemeanor. 49 8 3. Notwithstanding any provision of section 99B.52 or 49 9 99B.53 to the contrary, the following shall apply: 49 10 a. An individual other than an owner or distributor of an 49 11 amusement device may operate an amusement device, whether or 49 12 not the amusement device is owned, possessed, or offered for 49 13 use in compliance with section 99B.52 or 99B.53. 49 14 b. A distributor shall not be liable for a violation of 49 15 section 99B.52 or 99B.53 unless the distributor or an employee 49 16 of the distributor intentionally violates a provision of 49 17 section 99B.52 or 99B.53. 49 18 Sec. 46. NEW SECTION. 99B.62 Game nights == licensing 49 19 exceptions. 49 20 1. A person other than a qualified organization may lawfully 49 21 conduct a game night without a license, and may award cash or 49 22 merchandise prizes, under the following conditions: 49 23 a. A bona fide social, employment, or trade or professional 49 24 association relationship exists between the sponsors and the 49 25 participants. 49 26 b. The participants pay no consideration of any nature, 49 27 either directly or indirectly, to participate in the games. 49 28 c. All money, play money, or other items of no intrinsic 49 29 value which may be wagered are provided to the participant 49 30 free, and the sponsor conducting the game receives no 49 31 consideration, either directly or indirectly, other than 49 32 goodwill. 49 33 d. The games may be conducted at any location, except at a 49 34 fair or a location for which a license is required pursuant to 49 35 section 99B.3. 50 1 e. During the entire time activities permitted by this 50 2 subsection are being engaged in, no other gambling is engaged 50 3 in at the same location. 50 4 2. A person or an organization may sponsor one or more game 50 5 nights using play money for participation by students without 50 6 the person or organization obtaining a license otherwise 50 7 required by this chapter if the person or organization obtains 50 8 prior approval for the game night from the board of directors 50 9 of the accredited public school or the authorities in charge of 50 10 the nonpublic school accredited by the state board of education 50 11 for whose students the game night is to be held. 50 12 3. A gambling device intended for use or used as provided in 50 13 this section is exempt from the provisions of section 725.9, 50 14 subsection 2. 50 15 Sec. 47. REPEAL. Sections 99B.2, 99B.4, 99B.5, 99B.7, 50 16 99B.8, 99B.9A, 99B.10, 99B.16, and 99B.18, Code 2015, are 50 17 repealed. 50 18 Sec. 48. LICENSED QUALIFIED ORGANIZATION == INITIAL 50 19 ANNUAL REPORT. Notwithstanding any provision of section 50 20 99B.16A, subsection 3, to the contrary, the first annual 50 21 report submitted by a licensed qualified organization to the 50 22 department of inspections and appeals after July 1, 2015, shall 50 23 be submitted by January 31, 2017, and shall cover the period of 50 24 July 1, 2015, through December 31, 2016. 50 25 DIVISION II 50 26 COORDINATING AMENDMENTS 50 27 Sec. 49. Section 99.1A, unnumbered paragraph 2, Code 2015, 50 28 is amended to read as follows: 50 29 The provisions of this section do not apply togames of 50 30 skill, games of chance, or rafflessocial and charitable 50 31 gambling conducted pursuant to chapter 99B or to devices lawful 50 32 under section99B.1099B.52 or 99B.53. 50 33 Sec. 50. Section 99D.8, unnumbered paragraph 1, Code 2015, 50 34 is amended to read as follows: 50 35 A qualifying organization, as defined in section 51 1 513(d)(2)(C) of the Internal Revenue Code, as defined in 51 2 section 422.3, exempt from federal income taxation under 51 3 sections 501(c)(3), 501(c)(4), or 501(c)(5) of the Internal 51 4 Revenue Code or a nonprofit corporation organized under the 51 5 laws of this state, whether or not it is exempt from federal 51 6 income taxation, which is organized topromote those purposes 51 7 enumerated in section 99B.7, subsection 3, paragraph "b"51 8 distribute funds for educational, civic, public, charitable, 51 9 patriotic, or religious uses, as defined in section 99B.1, 51 10 or which regularly conducts an agricultural and educational 51 11 fair or exposition for the promotion of the horse, dog, or 51 12 other livestock breeding industries of the state, or an agency, 51 13 instrumentality, or political subdivision of the state, may 51 14 apply to the commission for a license to conduct horse or dog 51 15 racing. The application shall be filed with the administrator 51 16 of the commission at least sixty days before the first day 51 17 of the horse race or dog race meeting which the organization 51 18 proposes to conduct, shall specify the day or days when and 51 19 the exact location where it proposes to conduct racing, and 51 20 shall be in a form and contain information as the commission 51 21 prescribes. 51 22 Sec. 51. Section 99F.5, subsection 1, Code 2015, is amended 51 23 to read as follows: 51 24 1. A qualified sponsoring organization may apply to the 51 25 commission for a license to conduct gambling games on an 51 26 excursion gambling boat or gambling structure as provided in 51 27 this chapter. A person may apply to the commission for a 51 28 license to operate an excursion gambling boat. An operating 51 29 agreement entered into on or after May 6, 2004, between 51 30 a qualified sponsoring organization and an operator of an 51 31 excursion gambling boat or gambling structure shall provide for 51 32 a minimum distribution by the qualified sponsoring organization 51 33 for educational, civic, public, charitable, patriotic, or 51 34 religious uses as defined in section99B.7, subsection 3, 51 35 paragraph "b"99B.1, that averages at least three percent 52 1 of the adjusted gross receipts for each license year. The 52 2 application shall be filed with the administrator of the 52 3 commission at least ninety days before the first day of the 52 4 next excursion season as determined by the commission, shall 52 5 identify the excursion gambling boat upon which gambling games 52 6 will be authorized, shall specify the exact location where 52 7 the excursion gambling boat will be docked, and shall be in 52 8 a form and contain information as the commission prescribes. 52 9 The minimum capacity of an excursion gambling boat or gambling 52 10 structure is two hundred fifty persons. 52 11 Sec. 52. Section 99F.6, subsection 4, paragraph a, 52 12 subparagraph (2), Code 2015, is amended to read as follows: 52 13 (2) A qualified sponsoring organization licensed to operate 52 14 gambling games under this chapter shall distribute the receipts 52 15 of all gambling games, less reasonable expenses, charges, 52 16 taxes, fees, and deductions allowed under this chapter, as 52 17 winnings to players or participants or shall distribute the 52 18 receipts for educational, civic, public, charitable, patriotic, 52 19 or religious uses as defined in section99B.7, subsection 3, 52 20 paragraph "b"99B.1. However, a licensee to conduct gambling 52 21 games under this chapter shall, unless an operating agreement 52 22 for an excursion gambling boat otherwise provides, distribute 52 23 at least three percent of the adjusted gross receipts for 52 24 each license year for educational, civic, public, charitable, 52 25 patriotic, or religious uses as defined in section99B.7, 52 26 subsection 3, paragraph "b"99B.1. However, if a licensee 52 27 who is also licensed to conduct pari=mutuel wagering at a 52 28 horse racetrack has unpaid debt from the pari=mutuel racetrack 52 29 operations, the first receipts of the gambling games operated 52 30 within the racetrack enclosure less reasonable operating 52 31 expenses, taxes, and fees allowed under this chapter shall be 52 32 first used to pay the annual indebtedness. 52 33 Sec. 53. Section 331.304, subsection 2, Code 2015, is 52 34 amended by striking the subsection. 52 35 Sec. 54. Section 423.3, subsection 62, Code 2015, is amended 53 1 to read as follows: 53 2 62. The sales price from the sale of raffle tickets for a 53 3 raffle licensed and conducted at a fair pursuant to section 53 499B.599B.24. 53 5 Sec. 55. Section 805.8C, subsection 4, Code 2015, is amended 53 6 to read as follows: 53 7 4. Electricalandor mechanical amusement device violations. 53 8 a. For violations of legal age for operating an electrical 53 9andor mechanical amusement device required to be registered as 53 10 provided in section99B.10, subsection 1, paragraph "f"99B.53, 53 11 pursuant to section 99B.10C, subsection 1, the scheduled fine 53 12 is two hundred fifty dollars. Failure to pay the fine by a 53 13 person under the age of eighteen shall not result in the person 53 14 being detained in a secure facility. 53 15 b. For first offense violations concerning electricaland 53 16or mechanical amusement devices as provided in section99B.10, 53 17 subsection 399B.54, subsection 2, the scheduled fine is two 53 18 hundred fifty dollars. 53 19 DIVISION III 53 20 CODE EDITOR DIRECTIVES 53 21 Sec. 56. CODE EDITOR DIRECTIVE. 53 22 1. The Code editor is directed to make the following 53 23 transfers: 53 24 a. Section 99B.3 to section 99B.31. 53 25 b. Section 99B.5A to section 99B.22. 53 26 c. Section 99B.6 to section 99B.43. 53 27 d. Section 99B.7A to section 99B.32. 53 28 e. Section 99B.7B to section 99B.27. 53 29 f. Section 99B.9 to section 99B.44. 53 30 g. Section 99B.10A to section 99B.56. 53 31 h. Section 99B.10B to section 99B.55. 53 32 i. Section 99B.10C to section 99B.57. 53 33 j. Section 99B.10D to section 99B.58. 53 34 k. Section 99B.11 to section 99B.61. 53 35 l. Section 99B.11A, as enacted in this Act, to section 54 1 99B.11. 54 2 m. Section 99B.12 to section 99B.45. 54 3 n. Section 99B.12A to section 99B.23. 54 4 o. Section 99B.12B, as enacted in this Act, to section 54 5 99B.12. 54 6 p. Section 99B.13 to section 99B.2. 54 7 q. Section 99B.13A, as enacted in this Act, to section 54 8 99B.13. 54 9 r. Section 99B.14 to section 99B.3. 54 10 s. Section 99B.14A, as enacted in this Act, to section 54 11 99B.14. 54 12 t. Section 99B.15 to section 99B.4. 54 13 u. Section 99B.15A, as enacted in this Act, to section 54 14 99B.15. 54 15 v. Section 99B.16A, as enacted in this Act, to section 54 16 99B.16. 54 17 w. Section 99B.17 to section 99B.5. 54 18 x. Section 99B.19 to section 99B.6. 54 19 y. Section 99B.20 to section 99B.7. 54 20 z. Section 99B.21 to section 99B.8. 54 21 aa. Section 99B.21A, as enacted in this Act, to section 54 22 99B.21. 54 23 2. The Code editor is directed to create seven new 54 24 subchapters in chapter 99B as follows: 54 25 a. Subchapter I shall be entitled "general provisions" and 54 26 include sections 99B.1 through 99B.10. 54 27 b. Subchapter II shall be entitled "qualified 54 28 organizations" and include sections 99B.11 through 99B.20. 54 29 c. Subchapter III shall be entitled "charitable gambling" 54 30 and include sections 99B.21 through 99B.30. 54 31 d. Subchapter IV shall be entitled "other activities 54 32 requiring licensure" and include sections 99B.31 through 54 33 99B.40. 54 34 e. Subchapter V shall be entitled "social gambling" and 54 35 include sections 99B.41 through 99B.50. 55 1 f. Subchapter VI shall be entitled "electrical or 55 2 mechanical amusement devices" and include sections 99B.51 55 3 through 99B.60. 55 4 g. Subchapter VII shall be entitled "activities not 55 5 requiring licensure" and include sections 99B.61 and 99B.62. 55 6 3. The Code editor may modify subchapter titles if necessary 55 7 and is directed to correct internal references in the Code as 55 8 necessary due to enactment of this section. 55 9 EXPLANATION 55 10 The inclusion of this explanation does not constitute agreement with 55 11 the explanation's substance by the members of the general assembly. 55 12 This bill provides for the reorganization and modification 55 13 of provisions in Code chapter 99B governing games of skill or 55 14 chance, and raffles. 55 15 DIVISION I == SOCIAL AND CHARITABLE GAMBLING PROVISIONS. 55 16 The bill makes a variety of changes to Code section 99B.1 55 17 (definitions). The bill eliminates definitions for 55 18 "authorized", "controlling shareholder", "eligible applicant", 55 19 "posted", and "unrelated entity". New definitions for 55 20 "build=up or pyramid", "calendar raffles", "casino=style 55 21 games", "gambling", "game nights", and "licensed charitable 55 22 organization" are added. In addition, current definitions 55 23 or descriptions in Code section 99B.7 for "qualified 55 24 organizations", "charitable uses", "educational, civic, public, 55 25 charitable, patriotic, or religious uses", and "public uses" 55 26 are moved to Code section 99B.1. Existing definitions in Code 55 27 section 99B.1 are also modified. The definition for "amusement 55 28 concession" is amended to reference the games authorized and 55 29 not the location of where the games are played. "Bingo" is 55 30 amended to allow symbols or pictures to be used in playing 55 31 bingo and "bingo occasion" is amended to specify when a bingo 55 32 occasion ends. "Merchandise" is amended to provide that it 55 33 includes goods or services bought or sold in the regular course 55 34 of business and that a gift card not redeemable for cash is 55 35 considered merchandise. Other definitions in Code section 56 1 99B.1 are moved and made applicable to a subchapter of the 56 2 reorganized Code chapter. 56 3 Code section 99B.3, concerning amusement concessions, is 56 4 amended. The Code section, consistent with the change in the 56 5 definition of amusement concession, focuses on the type of 56 6 gambling activity allowed and eliminates existing locational 56 7 requirements for the activity. The Code section is amended 56 8 to increase the maximum value of prizes from $50 to $100 and 56 9 increases the maximum cost to play a game from $3 to $5. The 56 10 Code section is amended to specify what constitutes and does 56 11 not constitute allowable repurchase of prizes. 56 12 Code section 99B.4, providing for permitted locations of 56 13 amusement concessions, is repealed. 56 14 Code section 99B.5 (raffles conducted at a fair) is 56 15 repealed. The bill consolidates provisions governing raffles 56 16 in new Code section 99B.24. 56 17 Code section 99B.6 (games where liquor or beer is sold) is 56 18 rewritten by the bill. Restrictions on the locations where 56 19 the games may be conducted are unchanged and allowable games 56 20 are defined as social gambling. Provisions of existing Code 56 21 section 99B.6 applicable to lawful social gambling that may 56 22 occur between individuals or in public places in addition to 56 23 locations where liquor or beer is sold are moved to new Code 56 24 section 99B.42. 56 25 Code section 99B.7 (games conducted by qualified 56 26 organizations) is repealed. Several provisions of the Code 56 27 section are moved and modified in new Code sections governing 56 28 qualified organization licensing as provided in the bill. 56 29 Code section 99B.7A (manufacturers and distributors of 56 30 bingo equipment and supplies == license) is amended to apply 56 31 to manufacturers and distributors of electronic raffle 56 32 systems. In addition, the amended Code section provides for 56 33 a single annual license for manufacturers and distributors of 56 34 $1,000 instead of a $1,000 manufacturers license and a $500 56 35 distributor license. 57 1 Code section 99B.7B (card game tournaments conducted by 57 2 qualified organizations representing veterans) is amended to 57 3 provide that a qualified organization representing veterans 57 4 shall apply for a qualified organization license under new Code 57 5 section 99B.12B to conduct a card game tournament. 57 6 Code section 99B.8 (annual game night) is repealed. 57 7 Provisions governing licensed and unlicensed game nights are 57 8 included in new Code sections 99B.26 and 99B.62. 57 9 Code section 99B.9 (gambling in public places) is rewritten 57 10 by the bill. Current provisions relative to the license fee 57 11 and the public places in which social gambling may be conducted 57 12 are unchanged. Provisions of existing Code section 99B.9 57 13 applicable to lawful social gambling that may occur between 57 14 individuals or where liquor or beer is sold are moved to new 57 15 Code section 99B.42. 57 16 Code section 99B.9A, concerning exceptions for qualified 57 17 organizations to conduct bingo in certain locations, is 57 18 repealed. 57 19 Code section 99B.10, concerning electrical and mechanical 57 20 amusement devices, is repealed. New Code sections 99B.52, 57 21 99B.53, and 99B.54, all governing electrical or mechanical 57 22 amusement devices, include provisions contained in current Code 57 23 section 99B.10. 57 24 Code section 99B.10A, concerning registration of electrical 57 25 and mechanical amusement device manufacturers, distributors, 57 26 and for=profit owners, is amended by eliminating specific 57 27 reference to a manufacturer's representation in the category of 57 28 persons required to be registered under this Code section. 57 29 Code section 99B.10B is amended to provide that a first 57 30 offense of awarding a cash prize of $50 or less in violation 57 31 of the provisions governing electrical or mechanical amusement 57 32 devices is subject only to a civil penalty of $250 and not to 57 33 any additional penalties such as the suspension or revocation 57 34 of any liquor control license issued. In addition, the section 57 35 is amended to allow service for actions relative to denial, 58 1 suspension, or revocation of a registration of an electrical or 58 2 mechanical amusement device by means authorized by Code chapter 58 3 17A and to permit decisions relative to these actions to be 58 4 delivered by electronic mail. 58 5 Code sections 99B.10C and 99B.10D are amended to reflect 58 6 updated internal code references in Code chapter 99B. 58 7 Code section 99B.11, concerning bona fide contests, is 58 8 amended by providing categories that include current bona fide 58 9 contests and by then allowing contests that fit each of the 58 10 categories. The bill also allows, as an additional category, 58 11 trivia and trading card contests. 58 12 New Code section 99B.11A provides definitions applicable 58 13 to qualified organizations and charitable gambling. New 58 14 definitions include "electronic bingo equipment" and several 58 15 categories of raffles based on the value of prizes that may be 58 16 awarded. The new raffle definitions are "large raffle", "small 58 17 raffle", "very large raffle", and "very small raffle". 58 18 Code section 99B.12 (games between individuals) is stricken 58 19 and rewritten. The changes primarily eliminate provisions 58 20 applicable to social gambling generally that are moved to new 58 21 Code section 99B.42. 58 22 New Code section 99B.12B provides for qualified organization 58 23 licenses. The Code section identifies provisions generally 58 24 applicable to all licenses issued to a qualified organization 58 25 and provides for the fees and applicable games that may be 58 26 conducted pursuant to a two=year, one=year, 180=day, 90=day, 58 27 and 14=day qualified organization license. Current provisions 58 28 in Code section 99B.7 relative to licenses for public and 58 29 nonpublic schools and for school districts are moved to this 58 30 new Code section. 58 31 New Code section 99B.13A provides for general requirements 58 32 applicable to any gambling conducted by a qualified 58 33 organization. The requirements include provisions on 58 34 displaying the license, where gambling activities under 58 35 the license may be conducted, participation in gambling 59 1 requirements, and game=specific requirements. 59 2 New Code section 99B.14A provides for the distribution of 59 3 proceeds by a licensed qualified organization. Most provisions 59 4 governing distribution of proceeds are moved from current Code 59 5 section 99B.7. However, the bill provides that reasonable 59 6 expenses that may be retained by a licensed qualified 59 7 organization shall not exceed 40 percent of net receipts. 59 8 Current law limits reasonable expenses to 25 percent of net 59 9 receipts. 59 10 Code section 99B.15, providing for the applicability of the 59 11 Code chapter and penalties, is stricken and rewritten. The 59 12 Code section provides that a person who knowingly fails to 59 13 comply with the requirements of Code chapter 99B commits a 59 14 serious misdemeanor and that a person who intentionally files a 59 15 false or fraudulent report or application commits a fraudulent 59 16 practice under Code chapter 714. 59 17 New Code section 99B.15A provides general provisions 59 18 governing prizes awarded by a licensed charitable organization. 59 19 The Code section provides that merchandise prizes shall not 59 20 exceed $10,000 and cash can only be awarded in bingo and 59 21 raffles. 59 22 Code section 99B.16, concerning the criminal penalty for a 59 23 willful failure to maintain or submit records, is repealed. 59 24 Criminal penalties relative to reports and applications are 59 25 moved to Code section 99B.15. 59 26 Code section 99B.16A provides for records and reports 59 27 required of licensed qualified organizations. The Code section 59 28 requires an annual report to be submitted by January 31 for the 59 29 prior calendar year. The bill provides that the initial annual 59 30 report shall be submitted by January 31, 2017, for the period 59 31 beginning July 1, 2015, and ending December 31, 2016. 59 32 Code section 99B.17, providing that gambling on credit is 59 33 unlawful and including an exception, is rewritten by the bill. 59 34 The rewritten Code section allows payment by check, electronic 59 35 check, or debit card for gambling activities under Code 60 1 chapter 99B, except that only cash payments are allowed for 60 2 social gambling, registered amusement devices, and amusement 60 3 concessions not at a permanent location. 60 4 Code section 99B.18 (company games) is repealed. Games 60 5 authorized under this Code section are moved to new Code 60 6 section 99B.62 governing unlicensed game nights. 60 7 New Code section 99B.21A establishes requirements for a 60 8 licensed qualified organization conducting bingo. The Code 60 9 section provides operational requirements, prize requirements 60 10 as an exception to the general prize requirements in new 60 11 Code section 99B.15A, equipment requirements, and accounting 60 12 requirements. Most of the accounting requirements are moved 60 13 from Code section 99B.2 and other requirements are moved from 60 14 Code section 99B.7. As far as prizes, the new Code section 60 15 limits cash prizes and merchandise prizes to $250 per game of 60 16 bingo instead of $100 as currently provided in Code section 60 17 99B.7. For jackpot bingo games, the new Code section allows 60 18 the prize to start at no more $500, instead of the current 60 19 $300. 60 20 New Code section 99B.24 establishes requirements for a 60 21 licensed qualified organization conducting a raffle. The 60 22 Code section establishes operational requirements relative 60 23 to conducting a raffle and authorizes a licensed qualified 60 24 organization to conduct one very large raffle per year upon 60 25 submission of an additional fee. The bill defines "very large 60 26 raffle" as a raffle where the cumulative value of cash and 60 27 prizes is more than $100,000 but not more than $200,000 or 60 28 the prize is real property. The bill also allows a qualified 60 29 organization to conduct one very small raffle per calendar 60 30 year without a license and without adhering to the reporting 60 31 requirements of new Code section 99B.16A. A "very small 60 32 raffle" is defined in the bill as a raffle where the cumulative 60 33 value of the cash prize or prizes is $1,000 or less and the 60 34 value of all entries sold is $1,000 or less, or the cumulative 60 35 value of the donated merchandise prize or prizes is $5,000 or 61 1 less and the value of all entries sold is $5,000 or less. 61 2 New Code section 99B.25 allows a licensed qualified 61 3 organization with a two=year license to conduct a raffle 61 4 using an electronic raffle system. The bill allows only one 61 5 electronic raffle per calendar day and specifies how the 61 6 raffle is to be conducted and the information necessary on an 61 7 electronic raffle receipt. 61 8 New Code section 99B.26 allows a licensed qualified 61 9 organization to conduct one game night per calendar year. 61 10 Current provisions specific to game nights conducted by a 61 11 licensed qualified organization in Code section 99B.8 are moved 61 12 to this new Code section. In addition, the expanded prize 61 13 authorization for certain qualified organizations, such as for 61 14 veterans and voluntary emergency services providers, in current 61 15 Code section 99B.8, subsection 6, is made applicable to all 61 16 licensed qualified organizations. 61 17 New Code section 99B.41 provides definitions specific to 61 18 social gambling. The definition for "social games" is moved 61 19 from current Code section 99B.12, and the definition for 61 20 "sports betting pool" is moved from the definition of "pool" 61 21 in current Code section 99B.6 and amended to allow wagering 61 22 on the outcome of a sports event or sports events where the 61 23 competitors are natural persons. 61 24 New Code section 99B.42 provides general requirements 61 25 applicable to social gambling. Requirements in current Code 61 26 sections 99B.6, 99B.9, and 99B.12 that are applicable to social 61 27 gambling regardless of location are generally moved to this new 61 28 Code section. However, the bill increases from $50 to $200 the 61 29 amount a participant may win or lose at social gambling during 61 30 a 24=hour period. 61 31 New Code section 99B.51 includes definitions of 61 32 "distributor", "manufacturer", and "owner", for purposes of 61 33 electrical or mechanical amusement devices. The definitions 61 34 are moved from current Code section 99B.1. The definition 61 35 of "manufacturer" is also modified to include a person who 62 1 produces or purchases an originally produced motherboard. 62 2 New Code section 99B.52 provides general requirements 62 3 concerning all electrical or mechanical amusement devices. 62 4 Current provisions in Code section 99B.10, subsection 1, 62 5 paragraphs "a" through "d", "k", and "o" are moved to this new 62 6 Code section. 62 7 New Code section 99B.53 provides additional requirements for 62 8 electrical or mechanical amusement devices that are required 62 9 to be registered. Current provisions in Code section 99B.10, 62 10 subsection 1, governing amusement devices that are required to 62 11 be registered are moved to this new Code section. However, 62 12 the bill provides that all persons, and not just qualified 62 13 organizations, that are authorized to offer for use registered 62 14 electrical or mechanical amusement devices may offer for use no 62 15 more than four devices in any single location. 62 16 New Code section 99B.54 establishes criminal penalties for 62 17 violations of provisions concerning electrical or mechanical 62 18 amusement devices. The criminal offenses are similar to 62 19 current provisions in Code section 99B.10, subsections 2 62 20 through 5. 62 21 New Code section 99B.62 allows game nights to be conducted 62 22 without a license under certain circumstances. Current Code 62 23 section 99B.18, allowing company games, is moved to this new 62 24 Code section and is expanded to allow all persons to also hold 62 25 a casino night without a license subject to the requirements of 62 26 the new Code section. Current Code section 99B.8, subsection 62 27 4, concerning school game nights, is moved to this new Code 62 28 section. 62 29 DIVISION II == COORDINATING AMENDMENTS. Code section 99.1A, 62 30 concerning nuisances, is amended to refer to Code chapter 99B 62 31 as social and charitable gambling and to refer to amusement 62 32 devices as authorized by new Code sections 99B.52 and 99B.53. 62 33 Code section 99D.8, concerning qualified organization for 62 34 purposes of horse or dog racing licenses, is amended to provide 62 35 that the purposes of the organization shall be for educational, 63 1 civic, public, charitable, patriotic, or religious uses, as 63 2 defined in Code section 99B.1. 63 3 Code sections 99F.5 and 99F.6 are amended to provide that 63 4 the definition of "educational, civic, public, charitable, 63 5 patriotic, or religious uses" is located in Code section 99B.1. 63 6 Code section 331.304, concerning county powers, is amended 63 7 by striking the provision concerning the power to determine 63 8 locations of amusement concessions in accordance with current 63 9 Code section 99B.4 as Code section 99B.4 is repealed by the 63 10 bill. 63 11 Code section 423.3, subsection 62, concerning exemptions 63 12 from sales and use taxes, is amended to provide that the 63 13 exemption is for raffles licensed pursuant to new Code section 63 14 99B.24 and only conducted at a fair. Current law references 63 15 the current Code section, repealed in the bill, that limited 63 16 the exemption to raffles conducted at a fair. 63 17 Code section 805.8C, subsection 4, concerning scheduled 63 18 violations relating to amusement devices, is amended to correct 63 19 internal references to the applicable amusement device. 63 20 DIVISION III == CODE EDITOR DIRECTIVES. This division 63 21 directs the Code editor to transfer existing and new Code 63 22 sections in Code chapter 99B. The division further directs the 63 23 Code editor to reorganize the Code chapter by creating seven 63 24 new subchapters, containing the transferred Code sections, 63 25 and entitled "general provisions", "qualified organizations", 63 26 "charitable gambling", "other activities requiring licensure", 63 27 "social gambling", "electrical or mechanical amusement 63 28 devices", and "activities not requiring licensure". LSB 1314HZ (2) 86 ec/nh
