Bill Text: IA SF2362 | 2013-2014 | 85th General Assembly | Introduced

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: A bill for an act relating to pari-mutuel racetracks, including by providing for live dog racing at pari-mutuel dog racetracks, providing for alternative licensure for dog racetracks, and establishing fees, and including effective date provisions. (Formerly SSB 3223.) Various effective dates; see section 13 of bill.

Spectrum: Committee Bill

Status: (Passed) 2014-05-30 - Signed by Governor. S.J. 930. [SF2362 Detail]

Download: Iowa-2013-SF2362-Introduced.html

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Senate File 2362 - Introduced
SENATE FILE 2362
BY COMMITTEE ON APPROPRIATIONS
(SUCCESSOR TO SSB 3223)
A BILL FOR
An Act relating to pari-mutuel racetracks, including by
providing for live dog racing at pari-mutuel dog racetracks,
providing for alternative licensure for dog racetracks, and
establishing fees, and including effective date provisions.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
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Section 1. Section 99D.2, subsection 9, Code 2014, is
amended to read as follows:
9. “Racetrack enclosure” means all real property utilized
for the conduct of a race meeting, including the racetrack,
grandstand, concession stands, offices, barns, kennels and
barn areas, employee housing facilities, parking lots, and
any additional areas designated by the commission. “Racetrack
enclosure” also means all real property utilized by a licensee
under this chapter who is not required to conduct live racing
pursuant to the requirements of section 99D.9A, on which
pari-mutuel wagering on simultaneously telecast horse or dog
races may be conducted and lawful gambling is authorized and
licensed as provided in this chapter and chapter 99F.
Sec. 2. NEW SECTION . 99D.9A Dog racetrack licensure ——
discontinuance of live racing requirement —— fees.
1. Upon written notification to the commission by September
1, 2014, and agreement to comply with the requirements of this
section, a licensee authorized to operate a pari-mutuel dog
racetrack and to conduct gambling games pursuant to section
99F.6 as of January 1, 2014, may, as of the live racing
cessation date, continue to maintain a license as provided
in this section for purposes of conducting gambling games
and pari-mutuel wagering on simultaneously telecast horse or
dog races without the requirement of scheduling performances
of live races at the dog racetrack. For purposes of this
section, the “live racing cessation date” is October 31, 2014,
for the licensee of the pari-mutuel dog racetrack located in
Dubuque county, and December 31, 2015, for the licensee of the
pari-mutuel dog racetrack located in Pottawattamie county.
2. Upon the live racing cessation date of a licensee, all
of the following shall occur:
a. The commission shall determine what portion of the
unexpended moneys in the dog racing promotion fund created in
section 99D.12 is attributable to the licensee as of the live
racing cessation date of the licensee and shall transfer those
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moneys to the Iowa greyhound pari-mutuel racing fund created
in section 99D.9B.
b. Any agreement which was approved by the commission for
dog purse supplement payments for live racing by the licensee
shall be terminated.
c. Within thirty days after the live racing cessation date
of the licensee of the pari-mutuel dog racetrack located in
Pottawattamie county, the kennel owners and operators and
greyhound owners shall, at their expense, remove all of their
property including the greyhounds from the racetrack.
3. a. To maintain a license under this chapter to conduct
gambling games and pari-mutuel wagering on simultaneously
telecast horse or dog races without the requirement of
scheduling performances of live dog races, or to maintain a
license under section 99F.4A, subsection 9, the licensee as of
the date a payment under this subsection is due shall ensure
payment of the live racing cessation fee to the commission for
deposit in the Iowa greyhound pari-mutuel racing fund created
in section 99D.9B, as required by this subsection.
b. Except as provided in paragraph “c” , the live racing
cessation fee shall be paid and determined as follows:
(1) For the licensee authorized to conduct gambling games in
Dubuque county pursuant to a license issued pursuant to section
99F.4A, subsection 9, the payment of one million dollars by
January 1, 2015, and one million dollars each succeeding
January 1 for six consecutive calendar years.
(2) For the pari-mutuel dog racetrack located in
Pottawattamie county, the payment of nine million two hundred
eighty-five thousand eight hundred dollars by January 1, 2016,
and nine million two hundred eighty-five thousand seven hundred
dollars each succeeding January 1 for six consecutive calendar
years.
c. (1) If the licensee at the pari-mutuel racetrack located
in Pottawattamie county as of January 1, 2014, fails to have
the licensee’s license renewed, the licensee’s obligation to
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make any further payments as provided in this subsection shall
cease. However, the commission shall not issue a license to a
subsequent or successor licensee at the pari-mutuel racetrack
located in Pottawattamie county until all remaining unpaid
installments of the live racing cessation fee required under
this subsection are paid.
(2) If the licensee issued a license under section 99F.4A,
subsection 9, fails to have the license renewed, the licensee’s
obligation to make any further payments as provided in this
subsection shall cease. However, the commission shall not
issue a license to a subsequent or successor licensee under
section 99F.4A, subsection 9, until all remaining installments
of the live racing cessation fee required under this subsection
are paid.
(3) If the manager of the pari-mutuel racetrack located
in Pottawattamie county as of January 1, 2014, pursuant to
a management contract with the licensee, ceases to be the
manager of the racetrack, the licensee’s obligation to make any
further payments as provided in this subsection shall cease.
However, the commission shall not approve a management contract
with the licensee for a subsequent or successor manager until
all remaining installments of the live racing cessation fee
required under this subsection are paid.
4. Upon written notification to the commission by the
licensee of the pari-mutuel dog racetrack located in Dubuque
county as provided in subsection 1, all of the following shall
occur:
a. The licensee shall be authorized to maintain a license
issued to the licensee by the commission to conduct gambling
games pursuant to the requirements of section 99F.4A,
subsection 9.
b. The licensee shall maintain a license under this chapter
until December 31, 2014. The licensee shall, until the live
racing cessation date of the licensee, conduct pari-mutuel
wagering on live dog races and shall, until December 31, 2014,
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be authorized to simultaneously telecast horse or dog races as
provided by an agreement to conduct live racing during the 2014
calendar year.
5. a. The licensee of the pari-mutuel dog racetrack located
in Pottawattamie county who is not required to conduct live
racing pursuant to the requirements of this section shall do
all of the following:
(1) Remain licensed under this chapter and pursuant
to section 99F.4A as a pari-mutuel dog racetrack licensed
to conduct gambling games and pari-mutuel wagering on
simultaneously telecast horse or dog races.
(2) Continue to pay the annual license fee and regulatory
fee as a pari-mutuel dog racetrack licensed to conduct gambling
games pursuant to the requirements of section 99F.4A.
(3) Comply with all other applicable requirements of
this chapter and chapter 99F except for those requirements
concerning live dog racing.
b. However, nothing in this chapter shall require the
licensee of the pari-mutuel dog racetrack in Pottawattamie
county to conduct pari-mutuel wagering on simultaneously
telecast horse or dog races to remain licensed under this
chapter or to conduct gambling games without the requirement of
scheduling performances of live dog races.
6. a. Compliance with the requirements of this section
and the establishment of the Iowa greyhound pari-mutuel racing
fund in section 99D.9B shall constitute a full satisfaction of
and discharge from any and all liability or potential liability
of a licensee authorized to conduct gambling games in Dubuque
county pursuant to section 99F.4A, subsection 9, the licensee
of the pari-mutuel dog racetrack located in Pottawattamie
county, and the Iowa greyhound association which may arise out
of either of the following:
(1) The discontinuance of live dog racing or simulcasting.
(2) Distributions made or not made from the Iowa greyhound
pari-mutuel racing fund created in section 99D.9B or the purse
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escrow fund created in the arbitration decision issued in
December 1995 with regard to the purse supplements to be paid
at the pari-mutuel dog racetrack in Pottawattamie county.
b. Compliance with the requirements of this section and
establishment of the Iowa greyhound pari-mutuel racing fund in
section 99D.9B shall immunize a licensee authorized to conduct
gambling games in Dubuque county pursuant to a license issued
pursuant to section 99F.4A, subsection 9, the licensee of the
pari-mutuel dog racetrack located in Pottawattamie county, and
the Iowa greyhound association and their respective officers,
directors, employees, board members, and agents against claims
of liability as described in paragraph “a” made by any person
or entity.
Sec. 3. NEW SECTION . 99D.9B Iowa greyhound pari-mutuel
racing fund.
1. An Iowa greyhound pari-mutuel racing fund is created in
the state treasury under the control of the racing and gaming
commission.
2. The fund shall consist of all of the following:
a. Moneys in the dog racing promotion fund created in
section 99D.12 that were deposited in the fund from a dog
racetrack licensee that is no longer required to conduct live
dog races pursuant to section 99D.9A.
b. Moneys deposited in the fund from the live racing
cessation fee established in section 99D.9A.
3. a. Fifty percent of the moneys deposited in the fund
shall first be distributed to the Iowa greyhound association
for deposit in the escrow account established by the Iowa
greyhound association pursuant to the requirements of section
99D.9C, provided the Iowa greyhound association is licensed
under this chapter to conduct pari-mutuel wagering on live dog
races or simultaneously telecast horse or dog races pursuant to
the requirements of section 99D.9C, by December 15, 2014.
b. Moneys remaining in the fund following distribution to
the Iowa greyhound association as provided in this subsection
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shall be under the sole control of the commission. The
commission shall determine the method by which moneys remaining
in the fund will be distributed. The commission may consider
objective evidence, including purse payments to greyhound
industry participants for the period beginning January 1, 2010,
and ending December 31, 2014, in determining the method of
distribution. The commission may hire an expert to assist
in the task of making distributions from the fund. The
commission may distribute moneys from the fund to greyhound
industry participants, to no-kill animal adoption agencies
to facilitate care for and adoption of greyhounds no longer
racing as a result of the discontinuance of live racing,
and to kennel owners and operators and greyhound owners for
costs incurred in removing property from the dog racetrack
located in Pottawattamie county as required by section 99D.9A,
subsection 2, paragraph “c” . Prior to adoption of any formula
for distribution, the commission shall allow for input from
greyhound industry participants. The distribution decisions of
the commission shall be final. The commission may use moneys
in the fund to pay its direct and indirect administrative
expenses incurred in administering the fund, including the
hiring of experts to assist in the commission’s distribution
determination.
4. Section 8.33 does not apply to moneys in the fund.
Notwithstanding section 12C.7, subsection 2, interest or
earnings on moneys deposited in the fund shall be credited to
the fund.
5. The commission shall adopt rules to administer this
section.
Sec. 4. NEW SECTION . 99D.9C Alternative dog racetrack and
simulcasting licensure —— live racing —— lease agreement with
gambling games licensee.
1. a. The Iowa greyhound association may submit an
application to the commission for a license under this
chapter to conduct pari-mutuel wagering on live dog races
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or simultaneously telecast horse or dog races, subject
to the requirements of this section. Unless inconsistent
with the requirements of this section, the Iowa greyhound
association shall comply with all requirements for submitting
an application for a license under this chapter. If an
application is submitted by October 1, 2014, the commission
shall, subject to the requirements of section 99D.9 and this
section, determine whether to approve the application for a
license by December 1, 2014.
b. If the commission approves an application for a license
submitted by the Iowa greyhound association pursuant to section
99D.9 and this section, the terms and conditions of the license
shall, notwithstanding any provision of law to the contrary,
authorize the licensee to conduct pari-mutuel wagering on
live dog races or simultaneously telecast horse or dog races
conducted at a racetrack enclosure located in Dubuque county
subject to the requirements of a lease agreement entered into
pursuant to the requirements of this section. The terms and
conditions of the license shall also authorize the licensee
to conduct pari-mutuel wagering on simultaneously telecast
horse or dog races at the facility of a licensee authorized
to conduct gambling games under chapter 99F pursuant to an
agreement with the licensee of that facility as authorized by
this section. A licensee issued a license pursuant to this
section shall comply with all requirements of this chapter
applicable to licensees unless otherwise inconsistent with the
provisions of this section.
2. a. The Iowa greyhound association shall establish an
escrow fund under its control for the receipt and deposit
of moneys transferred to the Iowa greyhound association
pursuant to section 99D.9B. The Iowa greyhound association
shall use moneys in the escrow fund to pay all reasonable
and necessary costs and fees associated with conducting live
racing and pari-mutuel wagering on simultaneously telecast
horse or dog races, including but not limited to regulatory and
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administrative fees, capital improvements, purse supplements,
operational costs, obligations pursuant to any purse supplement
agreement as amended and approved by the commission, payment
of rents for leased facilities and costs of maintenance of
leased facilities, payment for products and services provided
by the licensee authorized to conduct gambling games in Dubuque
county pursuant to section 99F.4A, subsection 9, costs to
maintain the license, costs for posting a bond as required by
section 99D.10, and administrative costs and fees incurred
in connection with the pursuit of the continuation of live
greyhound racing.
b. However, if the Iowa greyhound association is not
licensed to conduct pari-mutuel wagering on live dog races
or simultaneously telecast horse or dog races subject to the
requirements of this section or fails to conduct live dog
racing during any calendar year beginning on or after January
1, 2015, the Iowa greyhound association shall transfer any
unused moneys in the escrow fund to the commission for deposit
in the Iowa greyhound pari-mutuel racing fund created in
section 99D.9B and shall receive no further distributions from
the fund created in section 99D.9B. The commission shall
require that an annual audit be conducted and submitted to
the commission, in a manner determined by the commission,
concerning the operation of the escrow fund.
3. a. A license issued pursuant to this section shall
authorize the licensee to enter into an agreement with any
licensee authorized to conduct gambling games under chapter
99F to conduct, without the requirement to conduct live
horse or dog races at the facility, pari-mutuel wagering on
simultaneously telecast horse or dog races at the facility of
the licensee authorized to conduct gambling games under chapter
99F. A licensee under this section shall enter into no more
than one agreement per county to conduct pari-mutuel wagering
on simultaneously telecast horse or dog races with a licensee
authorized to conduct gambling games under chapter 99F.
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b. If a lease agreement entered into with the city of
Dubuque pursuant to this section is terminated or is not
renewed or extended, the licensee authorized to conduct
gambling games in Dubuque county pursuant to a license issued
pursuant to section 99F.4A, subsection 9, shall be authorized
to enter into an agreement with a licensee issued a license
pursuant to this section to conduct pari-mutuel wagering on
simultaneously telecast horse or dog races at the facility of
the licensee as provided by this subsection.
c. If the Iowa greyhound association is licensed as provided
in this section and ceases to conduct live dog racing, all
revenue generated from an agreement to simultaneously telecast
horse or dog races as authorized by this subsection shall be
used solely for the purpose of supplementing Iowa-whelped dogs
racing at out-of-state facilities.
4. a. Upon written request by the Iowa greyhound
association to the city of Dubuque by July 8, 2014, the city of
Dubuque shall be authorized to enter into an initial five-year
lease agreement with a single option to renew the lease for
an additional five years with the Iowa greyhound association
beginning January 1, 2015, to permit the Iowa greyhound
association to conduct pari-mutuel wagering on live dog races
and simultaneously telecast horse or dog races at the dog
racetrack located in Dubuque county. The lease agreement shall
be contingent upon the Iowa greyhound association obtaining a
license pursuant to the requirements of this section.
b. The lease agreement shall provide for the following:
(1) An annual lease payment of one dollar during the initial
five-year lease for the racetrack enclosure, which includes the
racetrack, kennels, grandstand, and space for a new simulcast
facility, and one five-year renewal of the lease agreement at a
fair market rental rate.
(2) Employees at the racetrack enclosure involved in
pari-mutuel wagering as of the live racing cessation date, as
provided in section 99D.9A, shall be offered employment by the
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Iowa greyhound association at the racetrack.
(3) Existing collective bargaining agreements concerning
employees at the racetrack shall be honored.
(4) Live dog racing requirements. The requirements shall
provide that the Iowa greyhound association conduct, for
calendar year 2015, no fewer than sixty live race days with
nine live races per day during the racing season, and for
calendar year 2016 and subsequent calendar years covered by the
lease agreement, no fewer than ninety-five live race days with
nine live races per day during each racing season. However,
upon mutual agreement by the parties subject to approval by
the commission, the number of race days for one or more live
racing seasons may be reduced so long as the Iowa greyhound
association conducts a minimum number of live races and racing
days during that season.
(5) Termination provisions, to include termination of the
agreement on January 1 of the year following the calendar year
in which live dog racing as required by the agreement was not
conducted by the Iowa greyhound association.
(6) Terms concerning contracts entered into for the conduct
of pari-mutuel wagering at the racetrack prior to the live
racing cessation date, as provided in section 99D.9A, at the
racetrack.
(7) Any other related items concerning the conduct of
pari-mutuel wagering at the dog racetrack and the operation of
the dog racetrack facility.
c. (1) If the parties are unable to reach agreement on
any of the terms of the initial lease agreement by October 1,
2014, or to reach agreement on the fair market rental rate
for purposes of the one five-year lease renewal by June 30,
2018, if the Iowa greyhound association requests arbitration
concerning the renewal by June 18, 2018, the disputed terms
of the lease shall be determined by binding arbitration
in accordance with the rules of the American arbitration
association as of the date for arbitration. A request for
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arbitration shall be in writing and a copy of the request
shall be delivered to the other party. The parties shall each
select one arbitrator and the two arbitrators shall choose
a third arbitrator to complete the three-person arbitration
panel. Each party shall deliver its final offer on each of
the disputed items to the other party within fourteen days
after the request for arbitration. After consultation with
the parties, the arbitrators shall set a time and place for an
arbitration hearing. The parties may continue to negotiate
all offers until an agreement is reached or a decision is
rendered by the arbitrators. For purposes of determining the
fair market rental rate for purposes of the one five-year
lease renewal, either party may argue, and present arguments
and evidence, that the renewal lease rental rate should be
based upon the market value of similarly situated undeveloped
land, or upon its use as a greyhound track. The submission
of the disputed items to the arbitrators shall be limited to
those items upon which the parties have not reached agreement.
However, the arbitrators shall have no authority to extend the
term of the lease agreement beyond the initial five-year term
or the one five-year renewal.
(2) The arbitrators shall render a decision within
fifteen days after the hearing. The arbitrators shall give
written explanation for the decision and the decision of the
arbitrators shall be final and binding on the parties, and any
decision of the arbitrators may be entered in any court having
competent jurisdiction. The decision by the arbitrators and
the items agreed upon by the parties shall be deemed to be
the lease agreement between the parties and such final lease
agreement shall not be subject to the approval of the governing
body of the city of Dubuque, the Iowa greyhound association,
the commission, or any other government body. Each party to
the arbitration shall bear its own expenses, including attorney
fees, and the parties shall share equally the filing and other
administrative fees of the American arbitration association and
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the expenses of the arbitrators.
Sec. 5. Section 99D.10, Code 2014, is amended to read as
follows:
99D.10 Bond of licensee.
A licensee licensed under section 99D.9 , including a
licensee issued a license subject to the requirements of
section 99D.9C, shall post a bond to the state of Iowa before
the license is issued in a sum as the commission shall fix,
with sureties to be approved by the commission. The bond shall
be used to guarantee that the licensee faithfully makes the
payments, keeps its books and records and makes reports, and
conducts its racing in conformity with sections 99D.6 through
99D.23 and the rules adopted by the commission. The bond
shall not be canceled by a surety on less than thirty days’
notice in writing to the commission. If a bond is canceled
and the licensee fails to file a new bond with the commission
in the required amount on or before the effective date of
cancellation, the licensee’s license shall be revoked. The
total and aggregate liability of the surety on the bond is
limited to the amount specified in the bond.
Sec. 6. Section 99D.11, subsection 6, paragraph b, Code
2014, is amended to read as follows:
b. (1) The commission may authorize the licensee to
simultaneously telecast within the racetrack enclosure or at
the facility of a licensee authorized to conduct gambling games
under chapter 99F , for the purpose of pari-mutuel wagering, a
horse or dog race licensed by the racing authority of another
state. It is the responsibility of each licensee to obtain
the consent of appropriate racing officials in other states as
required by the federal Interstate Horseracing Act of 1978,
15 U.S.C. § 3001 – 3007, to televise races for the purpose of
conducting pari-mutuel wagering.
(2) A licensee may also obtain the permission of a person
licensed by the commission to conduct horse or dog races in
this state to televise races conducted by that person for the
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purpose of conducting pari-mutuel racing wagering . However,
arrangements made by a licensee to televise any race for the
purpose of conducting pari-mutuel wagering are subject to the
approval of the commission, and the commission shall select the
races to be televised. The races selected by the commission
shall be the same for all licensees approved by the commission
to televise races for the purpose of conducting pari-mutuel
wagering. The Except for a licensee that is not obligated to
schedule performances of live races pursuant to section 99D.9A,
or a licensee issued a license subject to the requirements
of section 99D.9C, the commission shall not authorize the
simultaneous telecast or televising of and a licensee shall
not simultaneously telecast or televise any horse or dog race
for the purpose of conducting pari-mutuel wagering unless the
simultaneous telecast or televising is done at the racetrack of
a licensee that schedules no less than sixty performances of
nine live races each day of the season.
(3) For purposes of the taxes imposed under this chapter ,
races televised by a licensee for purposes of pari-mutuel
wagering shall be treated as if the races were held at the
racetrack of by the licensee. Notwithstanding any contrary
provision in this chapter , the commission may allow a licensee
to adopt the same deductions as those of the pari-mutuel
racetrack from which the races are being simultaneously
telecast.
Sec. 7. Section 99D.20, Code 2014, is amended to read as
follows:
99D.20 Audit of licensee operations.
Within ninety days after the end of each calendar year,
the licensee , including a licensee issued a license subject
to the requirements of section 99D.9C, shall transmit to
the commission an audit of the financial transactions and
condition of the licensee’s operations conducted under this
chapter . Additionally, within ninety days after the end of
the licensee’s fiscal year, the licensee shall transmit to
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the commission an audit of the licensee’s total racing and
gaming operations, including an itemization of all expenses and
subsidies. All audits shall be conducted by certified public
accountants authorized to practice in the state of Iowa under
chapter 542 who are selected by the board of supervisors of the
county in which the licensee operates.
Sec. 8. Section 99F.1, subsection 21, Code 2014, is amended
to read as follows:
21. “Racetrack enclosure” means all real property utilized
for the conduct of a race meeting, including the racetrack,
grandstand, concession stands, offices, barns, kennels and
barn areas, employee housing facilities, parking lots, and
any additional areas designated by the commission. “Racetrack
enclosure” also means all real property utilized by a licensee
under chapter 99D who is not required to conduct live racing
pursuant to the requirements of section 99D.9A, on which
pari-mutuel wagering on simultaneously telecast horse or dog
races may be conducted and lawful gambling is authorized and
licensed as provided in this chapter.
Sec. 9. Section 99F.4A, Code 2014, is amended by adding the
following new subsection:
NEW SUBSECTION . 9. a. Upon application, the commission
shall issue a license to the licensee of the pari-mutuel
dog racetrack located in Dubuque county as of the effective
date of this provision of this Act to conduct gambling games
at a gambling structure subject to the provisions of this
chapter and rules adopted pursuant to this chapter relating
to gambling. The licensee shall not be required to pay
any additional fees or be assessed any additional costs
for issuance of the license pursuant to this subsection and
shall be exempt, for purposes of the initial issuance of a
license under this subsection, from further investigation and
examination for a license to conduct gambling games pursuant to
this chapter.
b. To maintain a license pursuant to this subsection on
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or after July 1, 2014, the licensee shall provide written
notification to the commission by September 1, 2014, as
provided in section 99D.9A, subsection 1, pay the live racing
cessation fee as provided in section 99D.9A, and otherwise
comply with the requirements of section 99D.9A applicable to
the licensee. In addition, the licensee shall pay the annual
license fee as specified in section 99F.5 and regulatory fee as
a licensee authorized to conduct gambling games on a gambling
structure and shall otherwise be required to comply with all
requirements of this chapter applicable to a gambling games
licensee not otherwise inconsistent with the requirements of
this subsection.
Sec. 10. Section 99F.6, subsection 4, paragraph b, Code
2014, is amended to read as follows:
b. (1) The commission shall authorize the licensees
licensee of the pari-mutuel dog racetracks racetrack located
in Dubuque county and Black Hawk county to conduct gambling
games as provided in section 99F.4A if the licensees schedule
licensee schedules at least one hundred thirty performances
of twelve live races each day during a season of twenty-five
weeks. For the pari-mutuel dog racetrack located in
Pottawattamie county, the commission shall authorize the
licensee to conduct gambling games as provided in section
99F.4A if the licensee schedules at least two hundred ninety
performances of twelve live races each day during a season
of fifty weeks. The However, the requirement to schedule
performances of live races for purposes of conducting gambling
games under this chapter shall not apply to a licensee as of
the live racing cessation date of the licensee as provided in
section 99D.9A.
(2) If a pari-mutuel dog racetrack authorized to conduct
gambling games as of January 1, 2014, is required to schedule
performances of live races for purposes of conducting gambling
games under this chapter during any calendar year, the
commission shall approve an annual contract to be negotiated
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between the annual recipient of the dog racing promotion fund
and each dog racetrack licensee to specify the percentage or
amount of gambling game proceeds which shall be dedicated to
supplement the purses of live dog races. The parties shall
agree to a negotiation timetable to insure no interruption
of business activity. If the parties fail to agree, the
commission shall impose a timetable. If the two parties cannot
reach agreement, each party shall select a representative and
the two representatives shall select a third person to assist
in negotiating an agreement. The two representatives may
select the commission or one of its members to serve as the
third party. Alternately, each party shall submit the name
of the proposed third person to the commission who shall then
select one of the two persons to serve as the third party. All
parties to the negotiations, including the commission, shall
consider that the dog racetracks were built to facilitate the
development and promotion of Iowa greyhound racing dogs in this
state and shall negotiate and decide accordingly.
Sec. 11. TRANSITION PROVISIONS —— PURSE SUPPLEMENTS. The
annual contract under section 99F.6, subsection 4, paragraph
“b”, specifying the percentage or amount of gambling game
proceeds which shall be dedicated to supplement the purses of
live dog races conducted during the calendar year beginning
January 1, 2014, at the pari-mutuel dog racetrack located in
Pottawattamie county shall be extended to apply to live dog
races conducted at the dog racetrack located in Pottawattamie
county during the calendar year beginning January 1, 2015.
Sec. 12. EFFECTIVE UPON ENACTMENT. The following
provision or provisions of this Act, being deemed of immediate
importance, take effect upon enactment:
1. The section of this Act amending section 99F.4A.
EXPLANATION
The inclusion of this explanation does not constitute agreement with
the explanation’s substance by the members of the general assembly.
This bill relates to the conduct of live dog racing at
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pari-mutuel dog racetracks authorized to conduct gambling
games.
Code section 99D.2, which provides definitions for
pari-mutuel wagering, is amended to provide that a racetrack
enclosure also includes real property utilized for purposes
of conducting pari-mutuel wagering on simultaneously telecast
horse or dog races and for lawful gambling authorized and
licensed as provided by Code chapters 99D and 99F.
New Code section 99D.9A allows a licensee authorized to
operate a pari-mutuel dog racetrack and to conduct gambling
games as of January 1, 2014, to, upon written notification
to the racing and gaming commission by September 1, 2014,
discontinue performances of live dog races as of the live
racing cessation date of the licensee and to maintain a license
for purposes of conducting gambling games and, if applicable,
pari-mutuel wagering on simultaneously telecast horse or dog
races. The bill provides that the live racing cessation
date is October 31, 2014, for the licensee of the racetrack
in Dubuque county, and December 31, 2015, for the licensee
of the racetrack in Pottawattamie county. Upon the live
racing cessation date, the racing and gaming commission shall
transfer any unexpended moneys in the dog racing promotion fund
attributable to the licensee to an Iowa greyhound pari-mutuel
racing fund created in the bill, and any agreement for dog
purse supplement payments for live racing shall be terminated.
In addition, the bill provides that greyhound and kennel owners
shall, within 30 days of the live racing cessation date,
remove all of their property including the greyhounds from the
racetrack located in Pottawattamie county. The bill provides
that each licensee, upon the applicable live racing cessation
date, shall commence paying a new live racing cessation fee for
deposit in the Iowa greyhound pari-mutuel racing fund. The
new Code section sets the total live racing cessation fee for
the pari-mutuel dog racetrack located in Dubuque county at $7
million, payable in $1 million installments each January 1 for
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seven consecutive years beginning January 1, 2015. For the
pari-mutuel dog racetrack located in Pottawattamie county, the
total live racing cessation fee is $65 million, payable in
installments over seven consecutive years beginning January 1,
2016. The bill provides that the obligation to pay the fee
ceases if either licensee, or the manager of the facility in
Pottawattamie county, who was the licensee or manager as of
January 1, 2014, is no longer the licensee or manager of the
facility, and that prior to issuing a license to a successor
licensee or entering into a new management agreement, all
remaining unpaid installments of the fee shall be paid.
The bill provides that the licensee of the racetrack
located in Dubuque county shall be authorized to maintain a
license under Code section 99F.4A, as provided in the bill, to
conduct gambling games on a gambling structure and to conduct
simulcast wagering until December 31, 2014. The licensee of
the racetrack located in Pottawattamie county shall remain
licensed under Code chapter 99D, shall not be required to
conduct live dog racing for purposes of conducting gambling
games, and shall be authorized, but not required, to conduct
pari-mutuel wagering on simultaneously telecast horse or dog
races without a live racing requirement. The new Code section
further provides that compliance with the requirements of
the Code section and the establishment of the Iowa greyhound
pari-mutuel racing fund constitute a full satisfaction of and
discharge from any liability of the licensees and the Iowa
greyhound association arising out of the discontinuance of live
dog racing as provided in the bill.
New Code section 99D.9B establishes an Iowa greyhound
pari-mutuel racing fund under the control of the racing
and gaming commission. The fund shall consist of moneys
transferred from the dog racing promotion fund, and moneys
from the live racing cessation fee established in new Code
section 99D.9A. Of the moneys deposited in the fund, 50
percent shall be distributed to the Iowa greyhound association
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if the association is licensed and conducts live dog racing as
authorized by the bill. Moneys remaining in the fund may be
distributed by the commission to applicable greyhound industry
participants, to no-kill animal adoption agencies to facilitate
care for and adoption of greyhounds, and to kennel owners and
operators and greyhound owners for costs incurred in removing
property from the dog racetrack located in Pottawattamie
county.
New Code section 99D.9C authorizes the Iowa greyhound
association to apply for a license to conduct pari-mutuel
wagering on live dog races or simultaneously telecast horse
or dog races. The bill provides that if an application
is submitted by October 1, 2014, the racing and gaming
commission shall make a decision on the application by December
1, 2014. The license shall authorize the Iowa greyhound
association to conduct pari-mutuel wagering on live dog races
or simultaneously telecast horse or dog races conducted at a
racetrack enclosure located in Dubuque county, subject to the
requirements of a lease agreement entered into pursuant to the
Code section. The license shall also authorize the licensee
to conduct pari-mutuel wagering on simultaneously telecast
horse or dog races at the facility of a licensee authorized
to conduct gambling games under Code chapter 99F pursuant to
an agreement with the licensee of that facility as authorized
by the new Code section. The new Code section provides that
the Iowa greyhound association shall establish an escrow fund
for moneys received from the racing and gaming commission from
the Iowa greyhound pari-mutuel racing fund created in the bill
and provides for the allowable uses of the moneys. The bill
requires an annual audit of the fund and provides that any
moneys remaining in the fund if the Iowa greyhound association
is not licensed or does not conduct live dog racing be returned
to the Iowa greyhound pari-mutuel racing fund. The new Code
section limits the number of agreements to conduct pari-mutuel
wagering on simultaneously telecast horse or dog races at
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the facility of a licensee authorized to conduct gambling
games under Code chapter 99F to one per county, establishes
requirements for entering into an agreement with a facility
located in Dubuque county, and requires that revenue generated
by the Iowa greyhound association from conducting pari-mutuel
wagering on simultaneously telecast horse or dog races be
utilized to supplement Iowa-whelped dogs racing out of state if
the association ceases to conduct live dog racing.
The bill further provides that, upon written request by the
Iowa greyhound association to the city of Dubuque by July 8,
2014, the city of Dubuque shall be authorized to enter into an
initial five-year lease agreement with a single option to renew
the lease for an additional five years with the Iowa greyhound
association beginning January 1, 2015, to permit the Iowa
greyhound association to conduct pari-mutuel wagering on live
dog races and simultaneously telecast horse or dog races at the
dog racetrack located in Dubuque county. The bill provides
for specific lease payment and live racing requirements, and
provides that if the parties are unable to reach agreement on
the terms of the lease agreement, the disputed terms will be
determined by binding arbitration.
Code section 99D.10, concerning bonding requirements, is
amended to be applicable to the Iowa greyhound association if
issued a license as provided by the bill.
Code section 99D.11, concerning pari-mutuel wagering on
simultaneously telecast horse or dog races, is amended to
allow such wagering at the facility of a licensee authorized
to conduct gambling games under Code chapter 99F and to allow
the licensee of the racetrack located in Pottawattamie county
that has complied with the requirements of new Code section
99D.9A, and the Iowa greyhound association, if licensed, to
conduct pari-mutuel wagering on simultaneously telecast horse
or dog races without the requirement of also conducting live
dog races.
Code section 99D.20, concerning auditing requirements, is
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amended to be applicable to the Iowa greyhound association if
issued a license as provided by the bill.
Code section 99F.1, which provides definitions for gambling
game licensees, is amended to provide that a racetrack
enclosure also includes real property utilized for purposes
of conducting pari-mutuel wagering on simultaneously telecast
horse or dog races and for lawful gambling authorized and
licensed as provided by Code chapters 99D and 99F.
Code section 99F.4A, concerning gambling games at
racetracks, is amended by adding a new subsection requiring the
racing and gaming commission to issue, upon request, a license
to the licensee of the pari-mutuel dog racetrack located in
Dubuque county as of the effective date of this provision of
the bill to conduct gambling games at a gambling structure
subject to the provisions of Code chapter 99F relating to
gambling without payment of any additional licensure fees or
further examination by the commission for purposes of the
initial issuance of the license. The new provision requires
the licensee to comply with the requirements of new Code
section 99D.9A that apply to the licensee. The bill provides
that this new subsection takes effect upon enactment.
Code section 99F.6, concerning live racing requirements for
dog racetrack licensees authorized to conduct gambling games
under Code chapter 99F, is amended to eliminate the live racing
requirement upon the live racing cessation date as provided
in new Code section 99D.9A if the licensee provides written
notification to the racing and gaming commission as provided
in Code section 99D.9A.
The bill also includes a transition provision that provides
that the percentage or amount of gambling game proceeds which
shall be dedicated to supplement the purses of live dog races
conducted during the calendar year beginning January 1, 2014,
at the pari-mutuel dog racetrack located in Pottawattamie
county shall be extended to apply to live dog races conducted
at the racetrack during the calendar year beginning January 1,
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2015.
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