Bill Text: IA SF442 | 2015-2016 | 86th General Assembly | Introduced

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Bill Title: A bill for an act concerning social and charitable gambling and making penalties applicable. (Formerly SSB 1217; see SF 482.)

Spectrum: Committee Bill

Status: (Introduced - Dead) 2015-03-12 - Amendment S-3037 filed. S.J. 593. [SF442 Detail]

Download: Iowa-2015-SF442-Introduced.html

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Senate File 442 - Introduced




                                 SENATE FILE       
                                 BY  COMMITTEE ON STATE
                                     GOVERNMENT

                                 (SUCCESSOR TO SSB
                                     1217)

                                      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 1314SV (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 with section 99B.10
  1 18 this chapter. When possessed and used in accordance with
  1 19  that section this 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 28  and letters, no symbols, or pictures. No two cards being shall
  1 29 be identical, with. In the game of bingo, players covering
  1 30  shall 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, and letters, 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, and letters, symbols,
  2  2 or pictures corresponding to the system used for designating
  2  3 the spaces, with the. The winner of each game being is the
  2  4 player or players first properly covering a predetermined and
  2  5 announced pattern of spaces on a card being used by the player
  2  6 or players. Each determination of a winner by the method
  2  7 described in the preceding sentence this 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 which successive a series of bingo games are is played. A
  2 11 bingo occasion commences begins when the operator of the a
  2 12 bingo game begins to announce the selects an object with a
  2 13  number, letter, symbol, or picture, or combination of numbers,
  2 14  or letters, symbols, or pictures through which the winner of a
  2 15 single the 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 win aligns
  2 22  completes activities, such as aligning objects or balls in a
  2 23 prescribed pattern or order or makes certain color patterns
  2 24 appear and.  "Game of chance" specifically includes but is not
  2 25 limited to the game defined as bingo. 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 the player player'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 buys a ticket an 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  8  A person may conduct an amusement concession if all of the
  6  9 following are complied with conditions 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 12    b.  The person conducting the game amusement concession has
  6 13 submitted a license application and a fee of fifty dollars for
  6 14 each game amusement concession, and has been issued a license
  6 15 for the game amusement concession, and prominently displays the
  6 16 license at the playing area of the game amusement concession.
  6 17 A license is valid for a period of one year from the date of
  6 18 issue.
  6 19    c.  Gambling other than the licensed game is not conducted or
  6 20 engaged in at the amusement concession.
  6 21    d.  b.  The game is rules of the amusement concession are
  6 22 prominently posted and the visible from all playing positions.
  6 23    c.  The cost to play the game a single amusement concession
  6 24  does not exceed three five dollars.
  6 25    e.  d.  A prize is not displayed which cannot be won.
  6 26    f.  e.  Cash prizes are not awarded and merchandise prizes
  6 27 are not repurchased.
  6 28    g.  f.  The game amusement 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 32 fifty one 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 exceed fifty one 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 the game and the game amusement concession.
  7  7    k.  The amusement concession is not designed or adapted with
  7  8 any control device to permit manipulation of the game amusement
  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 the game amusement concession must be
  7 13 attainable and possible to perform under the rules stated from
  7 14 the all playing position of the player positions.
  7 15    j.  m.  The game amusement concession is conducted in a fair
  7 16 and honest manner.
  7 17    2.  It is lawful for an An individual other than a person
  7 18 conducting the game to amusement concession may participate in
  7 19 a game of skill or game of chance conducted at an amusement
  7 20 concession, whether or not the amusement concession is
  7 21 conducted in compliance with subsection 1 this 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 section 99B.7 99B.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 11 sections 99B.2 and 99B.7 this 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 than fourteen fifteen 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 only includes 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  6 licensed qualified organization representing which 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 section 99B.7 99B.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 organization conducting the card game
 11 29 tournament has been issued a license pursuant to subsection 4
 11 30  and representing veterans prominently displays that the 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 manner and.
 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 tournament conducted by
 12 10 a qualified organization representing veterans shall 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, the
 13 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 application pursuant to as required
 13 22 by this subsection 4.
 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 held under an annual during a game night
 13 29 license conducted 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 section 99B.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 section 99B.2 99B.16A.
 14 18    c.  A qualified organization representing veterans licensed
 14 19 to conduct card game tournaments is allowed to may 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 uses as 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 section 99B.2 99B.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 section 99B.2,
 14 34 subsection 2 99B.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  Electrical and or 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 electrical and or mechanical amusement
 15 29 devices required to be registered as provided in section
 15 30 99B.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 manufacturer or 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 than two electrical and or
 16 13  mechanical amusement devices registered as provided in section
 16 14 99B.10, subsection 1, paragraph "f" 99B.53, at a single location
 16 15 or premises that is not an a qualified organization that 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 == electrical and or
 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 section 99B.10 or 99B.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 section 99B.10, 99B.10A, or 99B.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, the
 16 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  5    b.  c.  However, a A person who commits an offense of failing
 17  6 to include a security mechanism on an amusement device as
 17  7 required pursuant to section 99B.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 section 99B.10,
 17 15 subsection 1, paragraph "b" 99B.52, subsection 3, pursuant to
 17 16 rules adopted by the department, shall be subject to a civil
 17 17 penalty in the amount of two hundred fifty dollars.
 17 18    b.  A person who commits, within two years, a second offense
 17 19 of awarding a cash prize of fifty dollars or less in violation
 17 20 of section 99B.10, subsection 1, paragraph "b" 99B.52,
 17 21 subsection 3, or a person who commits an offense of awarding a
 17 22 cash prize of more than fifty dollars in violation of section
 17 23 99B.10, subsection 1, paragraph "b" 99B.52, subsection 3,
 17 24 pursuant to rules adopted by the department, shall be subject
 17 25 to revocation of the person's registration and the following:
 17 26    (1)  If the person whose registration is revoked under this
 17 27 paragraph "b", is a person for which a class "A", class "B",
 17 28 class "C", special class "C", or class "D" liquor control
 17 29 license has been issued pursuant to chapter 123, the person's
 17 30 liquor control license shall be suspended for a period of
 17 31 fourteen days in the same manner as provided in section 123.50,
 17 32 subsection 3, paragraph "a".
 17 33    (2)  If the person whose registration is revoked under this
 17 34 paragraph "b", is a person for which only a class "B" or class
 17 35 "C" beer permit has been issued pursuant to chapter 123, the
 18  1 person's class "B" or class "C" beer permit shall be suspended
 18  2 for a period of fourteen days in the same manner as provided in
 18  3 section 123.50, subsection 3, paragraph "a".
 18  4    (3)  If a person owning or employed by an establishment
 18  5 having a class "A", class "B", class "C", special class "C",
 18  6 or class "D" liquor control license issued pursuant to chapter
 18  7 123 commits an offense as provided in this paragraph "b", the
 18  8 liquor control license of the establishment shall be suspended
 18  9 for a period of fourteen days in the same manner as provided in
 18 10 section 123.50, subsection 3, paragraph "a".
 18 11    (4)  If a person owning or employed by an establishment
 18 12 having a class "B" or class "C" beer permit issued pursuant to
 18 13 chapter 123 commits an offense as provided in this paragraph
 18 14 "b", the beer permit of the establishment shall be suspended
 18 15 for a period of fourteen days in the same manner as provided in
 18 16 section 123.50, subsection 3, paragraph "a".
 18 17    3.  a.  The process for denial, suspension, or revocation of
 18 18 a registration issued pursuant to section 99B.10 or 99B.10A,
 18 19  or 99B.53, shall commence by delivering to the applicant or
 18 20 registrant by certified mail, return receipt requested, or
 18 21 by personal service a notice, by means authorized by section
 18 22 17A.18, setting forth the proposed action and the particular
 18 23 reasons for such action.
 18 24    b.  (1)  If a written request for a hearing is not received
 18 25 within thirty days after the mailing or service of the the
 18 26 delivery of notice as provided by paragraph "a", the denial,
 18 27 suspension, or revocation of a registration shall become
 18 28 effective pending a final determination by the department. The
 18 29 proposed action in the notice may be affirmed, modified, or set
 18 30 aside by the department in a written decision.
 18 31    (2)  If a request for a hearing is timely received by
 18 32 the department, the applicant or registrant shall be given
 18 33 an opportunity for a prompt and fair hearing before the
 18 34 department and the denial, suspension, or revocation shall
 18 35 be deemed suspended until the department makes a final
 19  1 determination. However, the director of the department may
 19  2 suspend a registration prior to a hearing if the director
 19  3 finds that the public integrity of the registered activity
 19  4 is compromised or there is a risk to public health, safety,
 19  5 or welfare. In addition, at any time during or prior to the
 19  6 hearing, the department may rescind the notice of the denial,
 19  7 suspension, or revocation upon being satisfied that the reasons
 19  8 for the denial, suspension, or revocation have been or will
 19  9 be removed. On the basis of any such hearing, the proposed
 19 10 action in the notice may be affirmed, modified, or set aside by
 19 11 the department in a written decision. The procedure governing
 19 12 hearings authorized by this paragraph shall be in accordance
 19 13 with the rules promulgated by the department and chapter 17A.
 19 14    c.  A copy of the final decision of the department shall
 19 15 be sent by electronic mail or certified mail, with return
 19 16 receipt requested, or served personally upon the applicant or
 19 17 registrant. The applicant or registrant may seek judicial
 19 18 review in accordance with the terms of the Iowa administrative
 19 19 procedure Act, chapter 17A.
 19 20    d.  If the department finds cause for denial of a
 19 21 registration issued pursuant to section 99B.10 or 99B.10A,
 19 22  or 99B.53, the applicant shall not reapply for the same
 19 23 registration for a period of two years. If the department
 19 24 finds cause for a suspension or revocation, the registration
 19 25 shall be suspended or revoked for a period not to exceed two
 19 26 years.
 19 27    Sec. 22.  Section 99B.10C, Code 2015, is amended to read as
 19 28 follows:
 19 29    99B.10C  Electrical and Registered electrical or mechanical
 19 30 amusement devices == persons under twenty=one == penalties.
 19 31    1.  A person under the age of twenty=one years shall not
 19 32 participate in the operation of an a registered electrical and
 19 33  or mechanical amusement device. A person who violates this
 19 34 subsection commits a scheduled violation under section 805.8C,
 19 35 subsection 4.
 20  1    2.  A person owning or leasing an a registered electrical
 20  2 and or mechanical amusement device, or an employee of a person
 20  3 owning or leasing an a registered electrical and or mechanical
 20  4 amusement device, who knowingly allows a person under the age
 20  5 of twenty=one years to participate in the operation of an a
 20  6 registered electrical and or mechanical amusement device, or
 20  7 a person who knowingly participates in the operation of an a
 20  8 registered electrical and or mechanical amusement device with a
 20  9 person under the age of twenty=one years, is guilty of a simple
 20 10 misdemeanor.
 20 11    3.  For purposes of this section, an electrical and
 20 12 mechanical amusement device "registered electrical or mechanical
 20 13 amusement device" means an electrical and or mechanical
 20 14 amusement device required to be registered as provided in
 20 15 section 99B.10, subsection 1, paragraph "f" 99B.53.
 20 16    Sec. 23.  Section 99B.10D, Code 2015, is amended to read as
 20 17 follows:
 20 18    99B.10D  Electrical and or mechanical amusement devices ==
 20 19 special fund.
 20 20    Fees collected by the department pursuant to sections
 20 21 99B.10 and 99B.10A and 99B.53 shall be deposited in a special
 20 22 fund created in the state treasury. Moneys in the fund are
 20 23 appropriated to the department of inspections and appeals
 20 24 and the department of public safety for administration and
 20 25 enforcement of sections 99B.10, 99B.10A, 99B.10B, and 99B.10C
 20 26 this subchapter, including employment of necessary personnel.
 20 27 The distribution of moneys in the fund to the department of
 20 28 inspections and appeals and the department of public safety
 20 29 shall be pursuant to a written policy agreed upon by the
 20 30 departments. Notwithstanding section 12C.7, subsection 2,
 20 31 interest or earnings on moneys deposited in the fund shall be
 20 32 credited to the fund. Notwithstanding section 8.33, moneys
 20 33 remaining in the fund at the end of a fiscal year shall not
 20 34 revert to the general fund of the state.
 20 35    Sec. 24.  Section 99B.11, Code 2015, is amended to read as
 21  1 follows:
 21  2    99B.11  Bona fide contests.
 21  3    1.  It is lawful for a A person to may conduct, without a
 21  4 license,  any of the contests specified in subsection 2, and to
 21  5  may offer and pay awards to persons winning in those contests
 21  6 whether or not entry fees, participation fees, or other charges
 21  7 are assessed against or collected from the participants, but
 21  8 only if all of the following requirements are complied with
 21  9  met:
 21 10    a.  The contest is not held at an amusement concession.
 21 11    b.  No A gambling device is not used in conjunction with, or
 21 12 incident to the contest.
 21 13    c.  b.  The contest is not conducted in whole or in part
 21 14 on or in any property subject to chapter 297, relating to
 21 15 schoolhouses and schoolhouse sites, unless the contest and the
 21 16 person conducting the contest has the express written approval
 21 17 of the governing body of that school district.
 21 18    d.  c.  The contest is conducted in a fair and honest manner.
 21 19    d.  A contest shall not be designed or adapted to permit the
 21 20 operator of the contest to prevent a participant from winning
 21 21 or to predetermine who the winner will be, and the.
 21 22    e.  The object of the contest must be attainable and possible
 21 23 to perform under the rules stated.
 21 24    f.  If the contest is a tournament, the tournament operator
 21 25 shall prominently display all tournament rules.
 21 26    2.  A contest, including a contest in a league or tournament,
 21 27  is not lawful unless only if it is falls into one of the
 21 28 following contests event categories:
 21 29    a.  Athletic or sporting events.  Athletic or sporting
 21 30 contests, leagues or tournaments, Events in this category
 21 31 include basketball, volleyball, football, baseball, softball,
 21 32 soccer, wrestling, swimming, track and field, racquetball,
 21 33 tennis, squash, badminton, table tennis, rodeos, horse shows,
 21 34 golf, bowling, trap or skeet shoots, fly casting, tractor
 21 35 pulling, rifle, pistol, musket, or muzzle=loader shooting, pool
 22  1  billiards, darts, archery, and horseshoe contests, leagues, or
 22  2 tournaments horseshoes.
 22  3    b.  Racing and skill=type events.  Horse Events in this
 22  4 category include horse races, harness racing, ski, airplane,
 22  5 snowmobile, raft, boat, bicycle, and motor vehicle races.
 22  6    c.  Arts and crafts=type events.  Contests or exhibitions
 22  7 of Events in this category include cooking, horticulture,
 22  8 livestock, poultry, fish or other animals, artwork, hobbywork
 22  9 or, and craftwork, except those prohibited by chapter 717A.
 22 10    d.  Card game=type and board game=type events.  Cribbage,
 22 11  Events in this category include cribbage, bridge, euchre,
 22 12  chess, checkers, dominoes, and pinochle and similar contests,
 22 13 leagues or tournaments. The provisions of this paragraph are
 22 14 retroactive to August 15, 1975.
 22 15    e.  Trivia and trading card events.
 22 16    f.  Video game=type and video sporting=type events.  A video
 22 17 machine golf tournament game which is an interactive bona fide
 22 18 contest. A player operates a video machine golf tournament
 22 19 game with a trackball assembly which acts as the golfer's swing
 22 20 and determines the results of play and tournament scores. A
 22 21 video machine golf tournament game is capable of receiving
 22 22 program and data information from an off=site location. A
 22 23 tournament operator shall prominently display all tournament
 22 24 rules.  Events in this category include pinball games, video
 22 25 games, and video machine golf tournament games, where skill
 22 26 is the predominant factor in determining the result of play
 22 27 and tournament scores.  To be lawful, a player shall operate a
 22 28 video machine with a device which directly impacts the results
 22 29 of the game.
 22 30    3.  A poker, blackjack, craps, keno, or roulette contest,
 22 31 league, or tournament shall not be considered a bona fide
 22 32 contest under this section.
 22 33    Sec. 25.  NEW SECTION.  99B.11A  Definitions.
 22 34    As used in this subchapter and subchapter III, unless the
 22 35 context otherwise requires:
 23  1    1.  "Electronic bingo equipment" means an electronic device
 23  2 that assists an individual with a disability in the use of a
 23  3 bingo card during a bingo game.
 23  4    2.  "Large raffle" means a raffle where the cumulative value
 23  5 of cash and prizes is more than ten thousand dollars but not
 23  6 more than one hundred thousand dollars.
 23  7    3.  "Small raffle" means a raffle where the cumulative value
 23  8 of cash and prizes is more than one thousand dollars but not
 23  9 more than ten thousand dollars.
 23 10    4.  "Very large raffle" means a raffle where the cumulative
 23 11 value of cash and prizes is more than one hundred thousand
 23 12 dollars but not more than two hundred thousand dollars or the
 23 13 prize is real property.
 23 14    5.  "Very small raffle" means a raffle where the cumulative
 23 15 value of the prize or prizes is one thousand dollars or less
 23 16 and the value of all entries sold is one thousand dollars or
 23 17 less.
 23 18    Sec. 26.  Section 99B.12, Code 2015, is amended by striking
 23 19 the section and inserting in lieu thereof the following:
 23 20    99B.12  Social gambling between individuals.
 23 21    1.  An individual may participate in social gambling if,
 23 22 subject to the requirements of section 99B.42, all of the
 23 23 following requirements are met:
 23 24    a.  The gambling is not participated in, either wholly or in
 23 25 part, on or in any schoolhouses, schoolhouse sites, or other
 23 26 property subject to chapter 297.
 23 27    b.  All participants in the gambling are individuals.
 23 28    c.  A person shall not participate in any wager, bet, or
 23 29 pool which relates to an athletic event or contest and which
 23 30 is authorized or sponsored by one or more schools, educational
 23 31 institutions, or interscholastic athletic organizations, if
 23 32 the person is a coach, official, player, or contestant in the
 23 33 athletic event or contest.
 23 34    d.  In any game requiring a dealer or operator, the
 23 35 participants must have the option to take their turn at dealing
 24  1 or operating the game in a regular order according to the
 24  2 standard rules of the game.
 24  3    2.  Social gambling allowed under this section is limited to
 24  4 any of the following:
 24  5    a.  Games of skill and games of chance, except casino=style
 24  6 games other than poker.
 24  7    b.  Wagers or bets between two or more individuals who are
 24  8 physically in the presence of each other with respect to any
 24  9 of the following:
 24 10    (1)  A contest specified in section 99B.11, except that no
 24 11 individual shall win or lose more than a total of fifty dollars
 24 12 or equivalent consideration in one or more contests at any time
 24 13 during any period of twenty=four consecutive hours or over that
 24 14 entire period.
 24 15    (2)  Any other event or outcome which does not depend upon
 24 16 gambling or the use of a gambling device that is unlawful in
 24 17 this state.
 24 18    Sec. 27.  NEW SECTION.  99B.12B  Qualified organization
 24 19 licenses == general provisions == types of licenses.
 24 20    1.  General provisions.
 24 21    a.  A qualified organization shall submit an application for
 24 22 a license, along with any required fees, to the department at
 24 23 least thirty days in advance of the beginning of the gambling
 24 24 activity, including the sale of entries or promotion of the
 24 25 sale of entries for raffles.
 24 26    b.  For purposes of this section, a license is deemed to be
 24 27 issued on the first day of the period for which the license is
 24 28 issued.
 24 29    c.  An applicant that has not submitted an annual report
 24 30 required pursuant to section 99B.16A shall submit such report
 24 31 prior to approval of the application.
 24 32    d.  A license shall not be issued to an applicant whose
 24 33 previous license issued under this chapter or chapter 123 has
 24 34 been revoked until the period of revocation or revocations has
 24 35 elapsed.
 25  1    e.  The license fee is not refundable.
 25  2    2.  Two=year qualified organization license.
 25  3    a.  The license fee for a two=year qualified organization
 25  4 license is one hundred fifty dollars.
 25  5    b.  An applicant for a license under this subsection shall
 25  6 be a qualified organization that has been in existence for at
 25  7 least five years, or is a local chapter or an affiliate of a
 25  8 national tax=exempt organization that has been in existence
 25  9 for at least two years and has provided written authorization
 25 10 from the national organization to the department.  The national
 25 11 tax=exempt organization shall be exempt from federal income
 25 12 taxes as described in section 99B.1, subsection 25, paragraph
 25 13 "a", and have been in existence at least five years.
 25 14    c.  A qualified organization issued a two=year qualified
 25 15 organization license may conduct the following activities:
 25 16    (1)  Unlimited games of skill or games of chance except for
 25 17 bingo.
 25 18    (2)  An unlimited number of very small raffles and an
 25 19 unlimited number of small raffles, including electronic
 25 20 raffles.
 25 21    (3)  One large raffle, including an electronic raffle,
 25 22 each calendar year during the two=year period, subject to the
 25 23 requirements of section 99B.24.
 25 24    (4)  Up to three bingo occasions per week and up to fifteen
 25 25 bingo occasions per month.
 25 26    (5)  One game night each calendar year during the two=year
 25 27 period, subject to the requirements of section 99B.26.
 25 28    3.  One=year qualified organization raffle license.
 25 29    a.  The license fee for a one=year qualified organization
 25 30 raffle license is one hundred fifty dollars.
 25 31    b.  A qualified organization issued a one=year qualified
 25 32 organization raffle license may conduct the following
 25 33 activities:
 25 34    (1)  An unlimited number of very small raffles and an
 25 35 unlimited number of small raffles.
 26  1    (2)  Up to eight large raffles with each large raffle
 26  2 conducted in a different county during the one=year period,
 26  3 subject to the requirements of section 99B.24.
 26  4    (3)  One game night during the one=year period, subject to
 26  5 the requirements of section 99B.26.
 26  6    4.  One hundred eighty=day qualified organization raffle
 26  7 license.
 26  8    a.  The license fee for a one hundred eighty=day qualified
 26  9 organization raffle license is seventy=five dollars.
 26 10    b.  A qualified organization issued a one hundred eighty=day
 26 11 qualified organization raffle license may conduct the following
 26 12 activities:
 26 13    (1)  An unlimited number of very small raffles and an
 26 14 unlimited number of small raffles.
 26 15    (2)  One large raffle during the period of one hundred eighty
 26 16 days, subject to the requirements of section 99B.24.
 26 17    (3)  One game night during the period of one hundred eighty
 26 18 days, subject to the requirements of section 99B.26.
 26 19    5.  Ninety=day qualified organization raffle license.
 26 20    a.  The license fee for a ninety=day qualified organization
 26 21 raffle license is forty dollars.
 26 22    b.  A qualified organization issued a ninety=day qualified
 26 23 organization raffle license may conduct the following
 26 24 activities:
 26 25    (1)  An unlimited number of very small raffles and an
 26 26 unlimited number of small raffles.
 26 27    (2)  One large raffle during the period of ninety days,
 26 28 subject to the requirements of section 99B.24.
 26 29    (3)  One game night during the period of ninety days, subject
 26 30 to the requirements of section 99B.26.
 26 31    6.  Fourteen=day qualified organization license.
 26 32    a.  The license fee for a fourteen=day qualified organization
 26 33 license is fifteen dollars.
 26 34    b.  A qualified organization issued a fourteen=day qualified
 26 35 organization license may conduct the following activities:
 27  1    (1)  Unlimited games of skill or games of chance except for
 27  2 bingo.
 27  3    (2)  An unlimited number of very small raffles and an
 27  4 unlimited number of small raffles.
 27  5    (3)  One large raffle during the period of fourteen days,
 27  6 subject to the requirements of section 99B.24.
 27  7    (4)  Two bingo occasions during the period of fourteen days
 27  8 with no limit on the number of bingo games or the number of
 27  9 hours played during each designated bingo day.  Bingo occasions
 27 10 conducted pursuant to a fourteen=day qualified organization
 27 11 license do not count toward the fifteen bingo occasions per
 27 12 month authorized for a two=year qualified organization license.
 27 13    (5)  One game night during the period of fourteen days,
 27 14 subject to the requirements of section 99B.26.
 27 15    7.  Qualified organizations == school provisions.  A school
 27 16 district or a public or nonpublic school may be issued a
 27 17 qualified organization license under this section subject to
 27 18 the following additional restrictions:
 27 19    a.  The application for a license shall be authorized by
 27 20 the board of directors of a school district for public schools
 27 21 within that district, or the policymaking body of a nonpublic
 27 22 school for a nonpublic school.
 27 23    b.  Activities authorized by the license may be held at
 27 24 bona fide school functions such as carnivals, fall festivals,
 27 25 bazaars, and similar events.
 27 26    c.  Each school shall obtain a license pursuant to this
 27 27 section prior to permitting the games or activities on the
 27 28 premises of that school.
 27 29    d.  The board of directors of a public school district
 27 30 may also be issued a license under this section. A board
 27 31 of directors of a public school district shall not spend or
 27 32 authorize the expenditure of public funds for the purpose of
 27 33 purchasing a license.
 27 34    e.  Upon written approval by the board of directors of a
 27 35 school district for public schools within that district or
 28  1 the policymaking body of a nonpublic school, the license may
 28  2 be used by any school group or parent support group in the
 28  3 district or at the nonpublic school to conduct activities
 28  4 authorized by this section. The board of directors or
 28  5 policymaking body shall not authorize a school group or parent
 28  6 support group to use the license to conduct more than two
 28  7 events in a calendar year.
 28  8    8.  Qualified organizations == miscellaneous provisions.  A
 28  9 political party or party organization may contract with other
 28 10 qualified organizations to conduct the games of skill, games
 28 11 of chance, and raffles which may lawfully be conducted by the
 28 12 political party or party organization. A licensed qualified
 28 13 organization may promote the games of skill, games of chance,
 28 14 and raffles which it may lawfully conduct.
 28 15    Sec. 28.  NEW SECTION.  99B.13A  Licensed qualified
 28 16 organizations == general requirements.
 28 17    A qualified organization licensed pursuant to section
 28 18 99B.12B shall, as a condition of licensure under section
 28 19 99B.12B, comply with the requirements of this section.
 28 20    1.  Authorized gambling activities == display of license.  A
 28 21 licensed qualified organization may only conduct gambling
 28 22 activities as authorized by the license and shall prominently
 28 23 display the license in the playing area where the gambling
 28 24 activities are conducted.
 28 25    2.  Location requirements.
 28 26    a.  Gambling activities, as authorized by the type of
 28 27 license, may be conducted on premises owned, leased, or rented
 28 28 by the licensee. The amount imposed and collected for rental
 28 29 or lease of such premises shall not be a percentage of, or
 28 30 otherwise related to, the amount of the receipts for the
 28 31 authorized gambling activities.
 28 32    b.  A gambling activity shall not take place on a gaming
 28 33 floor, as defined in section 99F.1, licensed by the state
 28 34 racing and gaming commission created in section 99D.5.
 28 35    3.  Participation requirements.
 29  1    a.  A person shall not receive or have any fixed or
 29  2 contingent right to receive, directly or indirectly, any
 29  3 profit, remuneration, or compensation from or related to a
 29  4 gambling activity conducted by a licensee, except any amount
 29  5 which the person may win as a participant on the same basis as
 29  6 the other participants.
 29  7    b.  The price to participate in a gambling activity,
 29  8 including any discounts for the gambling activity, shall be the
 29  9 same for each participant during the course of the gambling
 29 10 activity.
 29 11    c.  The person conducting the gambling activity shall not
 29 12 participate in the game.
 29 13    4.  Gambling activity requirements.
 29 14    a.  A  gambling activity shall not be operated on a build=up
 29 15 or pyramid basis.
 29 16    b.  Bookmaking shall not be allowed.
 29 17    c.  Concealed numbers or conversion charts shall not be used
 29 18 in conducting any gambling activity.
 29 19    d.  A gambling activity shall not be adapted with any control
 29 20 device to permit manipulation of the gambling activity by
 29 21 the operator in order to prevent a player from winning or to
 29 22 predetermine who the winner will be.
 29 23    e.  The object of the gambling activity must be attainable
 29 24 and possible to perform under the rules stated from the playing
 29 25 position of the player.
 29 26    f.  The gambling activity shall be conducted in a fair and
 29 27 honest manner.
 29 28    g.  Rules for each gambling activity shall be posted.
 29 29    h.  Casino=style games shall only be allowed during a game
 29 30 night as specified under section 99B.26 or during card game
 29 31 tournaments under section 99B.7B.
 29 32    Sec. 29.  Section 99B.14, Code 2015, is amended to read as
 29 33 follows:
 29 34    99B.14  License denial, suspension, and revocation.
 29 35    1.  The department may deny, suspend, or revoke a license
 30  1 if the department finds that an applicant, licensee, or an
 30  2 agent of the licensee violated or permitted a violation of
 30  3 a provision of this chapter or a departmental rule adopted
 30  4 pursuant to chapter 17A, or for any other cause for which
 30  5 the director of the department would be or would have
 30  6 been justified in refusing to issue a license, or upon the
 30  7 conviction of a person of a violation of this chapter or a
 30  8 rule adopted under this chapter which occurred on the licensed
 30  9 premises. However, the denial, suspension, or revocation of
 30 10 one type of gambling license does not require, but may result
 30 11 in, the denial, suspension, or revocation of a different type
 30 12 of gambling license held by the same licensee. In addition, a
 30 13    2.  A person whose license is revoked under this section who
 30 14 is a person for which whom a class "A", class "B", class "C",
 30 15 or class "D" liquor control license has been issued pursuant
 30 16 to chapter 123 shall have the person's liquor control license
 30 17 suspended for a period of fourteen days in the same manner as
 30 18 provided in section 123.50, subsection 3, paragraph "a". In
 30 19 addition, a
 30 20    3.  A person whose license is revoked under this section
 30 21 who is a person for which whom only a class "B" or class "C"
 30 22 beer permit has been issued pursuant to chapter 123 shall have
 30 23 the person's class "B" or class "C" beer permit suspended for
 30 24 a period of fourteen days in the same manner as provided in
 30 25 section 123.50, subsection 3, paragraph "a".
 30 26    2.  4.  The process for denial, suspension, or revocation
 30 27 of a license shall commence by delivering to the applicant
 30 28 or licensee by certified mail, return receipt requested, or
 30 29 by personal service a notice, by means authorized by section
 30 30 17A.18, setting forth the particular reasons for such action.
 30 31    a.  If a written request for a hearing is not received within
 30 32 thirty days after the mailing or service of the delivery of
 30 33  notice as provided in this subsection, the denial, suspension,
 30 34 or revocation of a license shall become effective pending a
 30 35 final determination by the department. The determination
 31  1 involved in the notice may be affirmed, modified, or set aside
 31  2 by the department in a written decision.
 31  3    b.  If a request for a hearing is timely received by the
 31  4 department, the applicant or licensee shall be given an
 31  5 opportunity for a prompt and fair hearing before the department
 31  6 and the denial, suspension, or revocation shall be deemed
 31  7 suspended until the department makes a final determination.
 31  8 However, the director may suspend a license prior to a hearing
 31  9 if the director finds that the public integrity of the licensed
 31 10 activity is compromised or there is a risk to public health,
 31 11 safety, or welfare. In addition, at any time during or prior
 31 12 to the hearing the department may rescind the notice of the
 31 13 denial, suspension, or revocation upon being satisfied that the
 31 14 reasons for the denial, suspension, or revocation have been
 31 15 or will be removed. On the basis of any such hearing, the
 31 16 determination involved in the notice may be affirmed, modified,
 31 17 or set aside by the department in a written decision.
 31 18    3.  5.  A copy of the final decision of the department shall
 31 19 be sent by electronic mail or certified mail, with return
 31 20 receipt requested, or served personally upon the applicant
 31 21 or licensee. The applicant or licensee may seek judicial
 31 22 review in accordance with the terms of the Iowa administrative
 31 23 procedure Act, chapter 17A.
 31 24    4.  6.  The procedure governing hearings authorized by this
 31 25 section shall be in accordance with the rules promulgated by
 31 26 the department and chapter 17A.
 31 27    5.  7.  If the department finds cause for denial of a
 31 28 license, the applicant may not reapply for the same license
 31 29 for a period of two years. If the department finds cause
 31 30 for suspension, the license shall be suspended for a period
 31 31 determined by the department. If the department finds cause
 31 32 for revocation, the license shall be revoked for a period not
 31 33 to exceed two years.
 31 34    Sec. 30.  NEW SECTION.  99B.14A  Distribution of proceeds ==
 31 35 licensed qualified organizations.
 32  1    1.  A licensed qualified organization shall certify
 32  2 that the receipts from all charitable gambling conducted
 32  3 by the organization under this chapter, less reasonable
 32  4 expenses, charges, fees, taxes, and deductions, either will
 32  5 be distributed as prizes to participants or will be dedicated
 32  6 and distributed for educational, civic, public, charitable,
 32  7 patriotic, or religious uses.  Reasonable expenses, charges,
 32  8 fees, taxes other than the state and local sales tax, and
 32  9 deductions allowed by the department shall not exceed forty
 32 10 percent of net receipts.
 32 11    2.  A licensed qualified organization shall dedicate and
 32 12 distribute the balance of the net receipts received within
 32 13 a calendar year and remaining after deduction of reasonable
 32 14 expenses, charges, fees, taxes, and deductions allowed by
 32 15 this chapter, before the annual report required under section
 32 16 99B.16A is due.
 32 17    a.  A person desiring to hold the net receipts for a period
 32 18 longer than permitted under this subsection shall apply to the
 32 19 department for special permission and upon good cause shown the
 32 20 department may grant the request.
 32 21    b.  If permission is granted to hold the net receipts,
 32 22 the person shall, as a part of the annual report required by
 32 23 section 99B.16A, report the amount of money being held and all
 32 24 expenditures of the funds. This report shall be filed even if
 32 25 the person no longer holds a gambling license.
 32 26    3.  Proceeds coming into the possession of a person under
 32 27 this section are deemed to be held in trust for payment
 32 28 of expenses and dedication to educational, civic, public,
 32 29 charitable, patriotic, or religious uses as required by this
 32 30 section.
 32 31    4.  A licensed qualified organization or agent of the
 32 32 organization who willfully fails to dedicate the required
 32 33 amount of proceeds to educational, civic, public, charitable,
 32 34 patriotic, or religious uses as required by this section
 32 35 commits a fraudulent practice under chapter 714.
 33  1    5.  Proceeds distributed to another charitable organization
 33  2 to satisfy the sixty percent dedication requirement shall not
 33  3 be used by the donee to pay any expenses in connection with the
 33  4 conducting of any gambling activity by the donor organization,
 33  5 or for any use that would not constitute a valid dedication
 33  6 under this section.
 33  7    Sec. 31.  Section 99B.15, Code 2015, is amended by striking
 33  8 the section and inserting in lieu thereof the following:
 33  9    99B.15  Penalties.
 33 10    In addition to any other penalty specified in this chapter,
 33 11 the following penalties shall apply:
 33 12    1.  A person who knowingly fails to comply with the
 33 13 requirements of this chapter and the rules adopted pursuant to
 33 14 chapter 17A commits a serious misdemeanor.
 33 15    2.  A person who intentionally files a false or fraudulent
 33 16 report or application as required by this chapter commits a
 33 17 fraudulent practice under chapter 714.
 33 18    Sec. 32.  NEW SECTION.  99B.15A  Prizes awarded by licensed
 33 19 qualified organizations.
 33 20    1.  Unless otherwise provided, a prize awarded by a licensed
 33 21 qualified organization shall comply with the following
 33 22 requirements:
 33 23    a.  Only merchandise prizes whose value does not exceed ten
 33 24 thousand dollars may be awarded for games of skill and games
 33 25 of chance.  If a prize consists of more than one item, unit, or
 33 26 part, the aggregate value of all items, units, or parts shall
 33 27 not exceed ten thousand dollars.
 33 28    b.  A merchandise prize shall not be repurchased.
 33 29    c.  No prize shall be displayed which cannot be won.
 33 30    d.  A cash prize may only be awarded in bingo and raffles.
 33 31    e.  A prize shall be distributed on the day the prize is won,
 33 32 except that if the winner is not present, notification to the
 33 33 winner shall be made as soon as practical.
 33 34    2.  A licensed qualified organization awarding a prize
 33 35 for bingo is subject to the restrictions provided in section
 34  1 99B.21A.  A licensed qualified organization awarding a prize
 34  2 for a raffle is subject to the restrictions provided in section
 34  3 99B.24.
 34  4    Sec. 33.  NEW SECTION.  99B.16A  Records and reports ==
 34  5 licensed qualified organization.
 34  6    1.  A qualified organization licensed pursuant to section
 34  7 99B.12B, unless otherwise provided, shall maintain proper
 34  8 books of account and records showing, in addition to any other
 34  9 information required by the department, the following:
 34 10    a.  Gross receipts and the amount of the gross receipts
 34 11 taxes collected or accrued with respect to gambling activities
 34 12 conducted by the licensed qualified organization.
 34 13    b.  All expenses, charges, fees, and other deductions.
 34 14    c.  The cash amounts, or the cost to the licensee of goods
 34 15 or other noncash valuables, distributed to participants in the
 34 16 licensed activity.
 34 17    d.  The amounts dedicated and the date and name and address
 34 18 of each person to whom distributed.
 34 19    2.  The books of account and records shall be made available
 34 20 to the department or a law enforcement agency for inspection at
 34 21 reasonable times, with or without notice. A failure to permit
 34 22 inspection is a serious misdemeanor.
 34 23    3.  A licensed qualified organization required to maintain
 34 24 records shall submit an annual report to the department on
 34 25 forms furnished by the department.  The annual report shall be
 34 26 submitted by January 31 of each year for the prior calendar
 34 27 year period of January 1 through December 31.
 34 28    Sec. 34.  Section 99B.17, Code 2015, is amended by striking
 34 29 the section and inserting in lieu thereof the following:
 34 30    99B.17  Allowable forms for payment.
 34 31    1.  Social gambling, registered amusement devices, and
 34 32 amusement concessions not at a permanent location, require
 34 33 payment solely by cash.
 34 34    2.  Except as provided by subsection 1, a participant in
 34 35 an activity authorized by this chapter may make payment by
 35  1 cash, personal check, money order, bank check, cashier's check,
 35  2 electronic check, debit card, or credit card.
 35  3    3.  The department shall adopt rules setting minimum
 35  4 standards to ensure compliance with applicable federal law and
 35  5 for the protection of personal information consistent with
 35  6 payment card industry compliance regulations.
 35  7    Sec. 35.  Section 99B.21, Code 2015, is amended to read as
 35  8 follows:
 35  9    99B.21  Tax on prizes.
 35 10    All prizes awarded pursuant to a gambling activity under
 35 11 this chapter are Iowa earned income and are subject to state
 35 12 and federal income tax laws. A person conducting a game of
 35 13 skill, game of chance, bingo, or a raffle shall deduct state
 35 14 income taxes, pursuant to section 422.16, subsection 1, from a
 35 15 cash prize awarded to an individual. An amount deducted from
 35 16 the prize for payment of a state tax shall be remitted to the
 35 17 department of revenue on behalf of the prize winner.
 35 18    Sec. 36.  NEW SECTION.  99B.21A  Bingo.
 35 19    A licensed qualified organization shall comply with the
 35 20 requirements of this section for the purposes of conducting
 35 21 bingo at a bingo occasion.
 35 22    1.  Operational requirements.
 35 23    a.  A bingo occasion shall not last for longer than four
 35 24 consecutive hours.
 35 25    b.  Only one licensed qualified organization may conduct
 35 26 bingo occasions within the same structure or building.
 35 27    c.  A licensed qualified organization shall not conduct or
 35 28 offer free bingo games.
 35 29    d.  A licensed qualified organization shall not conduct bingo
 35 30 within a building or structure that is licensed pursuant to
 35 31 chapter 99D or 99F.
 35 32    2.  Prize requirements.
 35 33    a.  A cash or merchandise prize may be awarded in the game of
 35 34 bingo.
 35 35    b.  A cash prize shall not exceed two hundred fifty dollars
 36  1 per game of bingo.
 36  2    c.  A merchandise prize may be awarded in the game of bingo,
 36  3 but the actual retail value of the prize, or if the prize
 36  4 consists of more than one item, unit, or part, the aggregate
 36  5 retail value of all items, units, or parts, shall not exceed
 36  6 two hundred fifty dollars in value.
 36  7    d.  A jackpot bingo game may be conducted twice during any
 36  8 twenty=four=hour period in which the prize may begin at not
 36  9 more than five hundred dollars in cash or actual retail value
 36 10 of merchandise prizes and may be increased by not more than two
 36 11 hundred dollars after each bingo occasion to a maximum prize
 36 12 of one thousand dollars for the first jackpot bingo game and
 36 13 two thousand five hundred dollars for the second jackpot bingo
 36 14 game.
 36 15    3.  Equipment requirements.
 36 16    a.  A licensed qualified organization conducting bingo shall
 36 17 purchase bingo equipment and supplies only from a manufacturer
 36 18 or distributor licensed by the department.
 36 19    b.  A licensed qualified organization may lease electronic
 36 20 bingo equipment from a manufacturer or distributor licensed
 36 21 by the department for the purposes of aiding individuals with
 36 22 disabilities during a bingo occasion.
 36 23    4.  Accounting requirements.  A qualified organization
 36 24 conducting bingo occasions under a two=year qualified
 36 25 organization license and expecting annual gross receipts of
 36 26 more than ten thousand dollars shall establish and maintain one
 36 27 regular checking account designated the "bingo account" and may
 36 28 also maintain one or more interest=bearing savings accounts
 36 29 designated as "bingo savings account". The accounts shall be
 36 30 maintained in a financial institution in Iowa.
 36 31    a.  Funds derived from the conduct of bingo, less the
 36 32 amount awarded as cash prizes, shall be deposited in the bingo
 36 33 account.
 36 34    (1)  No other funds except limited funds of the organization
 36 35 deposited to pay initial or unexpected emergency expenses shall
 37  1 be deposited in the bingo account.
 37  2    (2)  Deposits shall be made no later than the next business
 37  3 day following the day of the bingo occasion on which the
 37  4 receipts were obtained.
 37  5    b.  Payments shall be paid from the bingo account only for
 37  6 the following purposes:
 37  7    (1)  The payment of reasonable expenses permitted under
 37  8 section 99B.14A, subsection 1, incurred and paid in connection
 37  9 with the conduct of bingo.
 37 10    (2)  The disbursement of net proceeds derived from the
 37 11 conduct of bingo for educational, civic, public, charitable,
 37 12 patriotic, or religious uses as required by section 99B.14A,
 37 13 subsection 1.
 37 14    (3)  The transfer of net proceeds derived from the conduct
 37 15 of bingo to a bingo savings account pending disbursement for
 37 16 educational, civic, public, charitable, patriotic, or religious
 37 17 uses.
 37 18    (4)  To withdraw initial or emergency funds deposited under
 37 19 paragraph "a".
 37 20    (5)  To pay prizes if the qualified organization decides to
 37 21 pay prizes by check rather than cash.
 37 22    c.  Except as permitted by paragraph "a", gross receipts
 37 23 derived from the conduct of bingo shall not be commingled with
 37 24 other funds of the licensed qualified organization. Except as
 37 25 permitted by paragraph "b", subparagraphs (3) and (4), gross
 37 26 receipts shall not be transferred to another account maintained
 37 27 by the licensed qualified organization.
 37 28    Sec. 37.  NEW SECTION.  99B.24  Raffles.
 37 29    1.  General provisions.  A licensed qualified organization
 37 30 may conduct a raffle as permitted by the applicable license and
 37 31 in accordance with the following requirements:
 37 32    a.  The winner of a raffle shall not be required to be
 37 33 present to win.
 37 34    b.  If the winner is not present to win, notification to the
 37 35 winner shall be made as soon as practical.
 38  1    c.  A cash or merchandise prize may be awarded in a raffle.
 38  2 If a merchandise prize is awarded,  the actual retail value of
 38  3 the prize, or if the prize consists of more than one item,
 38  4 unit, or part, the aggregate retail value of all items, units,
 38  5 or parts, shall not exceed the maximum value allowed for that
 38  6 raffle.
 38  7    d.  Calendar raffles and build=up or pyramid raffles are
 38  8 prohibited.
 38  9    e.  If a raffle is conducted at a fair, the licensed
 38 10 qualified organization shall receive written permission from
 38 11 the sponsor of the fair to conduct the raffle.
 38 12    f.  A licensed qualified organization shall, regardless of
 38 13 the number of licenses issued, only conduct one large raffle
 38 14 per calendar year. However, a licensed qualified organization
 38 15 issued a one=year qualified organization raffle license may
 38 16 conduct up to eight large raffles with each large raffle
 38 17 conducted in a different county during the one=year period.
 38 18    2.  Very large raffles.  A licensed qualified organization
 38 19 may conduct one very large raffle per calendar year subject to
 38 20 the provisions of this subsection.
 38 21    a.  The licensed qualified organization shall submit a very
 38 22 large raffle license application and a fee of one hundred
 38 23 dollars to the department and be issued a license.
 38 24    b.  The licensed qualified organization shall prominently
 38 25 display the license at the drawing area of the raffle.
 38 26    c.  If the raffle prize is real property, the real property
 38 27 shall be acquired by gift or donation or shall have been owned
 38 28 by the licensed qualified organization for a period of at least
 38 29 five years.
 38 30    d.  The department shall conduct a special audit of a
 38 31 very large raffle to verify compliance with the applicable
 38 32 requirements of this chapter concerning raffles and very large
 38 33 raffles.
 38 34    e.  The licensed qualified organization shall submit to the
 38 35 department within sixty days of the very large raffle drawing a
 39  1 cumulative report for the raffle on a form determined by the
 39  2 department and one percent of the gross receipts from the very
 39  3 large raffle.  The one percent of the gross receipts shall be
 39  4 retained by the department to pay for the cost of the special
 39  5 audit.
 39  6    3.  Very small raffles.  A qualified organization may conduct
 39  7 one very small raffle per calendar year without obtaining a
 39  8 qualified organization license.  A qualified organization
 39  9 conducting a very small raffle as authorized by this subsection
 39 10 shall comply with the requirements for conducting a raffle
 39 11 by a licensed qualified organization, including payment of
 39 12 applicable sales tax.  However, a qualified organization
 39 13 holding only one very small raffle per calendar year shall be
 39 14 exempt from the reporting requirements in section 99B.16A.
 39 15    Sec. 38.  NEW SECTION.  99B.25  Electronic raffles.
 39 16    1.  A qualified organization with a two=year qualified
 39 17 organization license may conduct a raffle using an electronic
 39 18 raffle system, if the qualified organization complies with the
 39 19 requirements of section 99B.24 and this section.
 39 20    2.  The licensed qualified organization shall only use
 39 21 an electronic raffle system purchased from a manufacturer or
 39 22 distributor licensed pursuant to section 99B.7A and certified
 39 23 by an entity approved by the department. The electronic raffle
 39 24 system may include stationary and portable or wireless raffle
 39 25 sales units.
 39 26    3.  A licensed qualified organization shall hold only one
 39 27 raffle using an electronic raffle system per calendar day.  A
 39 28 licensed qualified organization shall not hold a very large
 39 29 raffle using an electronic raffle system and may hold only one
 39 30 large raffle using an electronic raffle system per calendar
 39 31 year.  A large raffle conducted using an electronic raffle
 39 32 system counts toward the limit of one large raffle per calendar
 39 33 year under section 99B.24, subsection 1, paragraph "f".
 39 34    4.  Except for a large raffle conducted using an electronic
 39 35 raffle system, the prize for an electronic raffle shall be
 40  1 limited to the amount allowed for a small raffle.
 40  2    5.  Entries for a raffle using an electronic raffle system
 40  3 shall not be preprinted and shall be provided to the purchaser
 40  4 at the time of sale.
 40  5    6.  The electronic raffle receipt shall contain the
 40  6 following information:
 40  7    a.  The name of the licensed qualified organization.
 40  8    b.  The license identification number of the qualified
 40  9 organization.
 40 10    c.  The location, date, and time of the corresponding raffle
 40 11 drawing.
 40 12    d.  The unique printed entry number, or multiple entry
 40 13 numbers, of the raffle entry.
 40 14    e.  The price of the raffle entry.
 40 15    f.  An explanation of the prize to be awarded.
 40 16    g.  The statement, "Need not be present to win", and the
 40 17 contact information, including name, telephone number, and
 40 18 electronic mail address, of the individual from the qualified
 40 19 organization responsible for prize disbursements.
 40 20    h.  The date by which the prize shall be claimed which shall
 40 21 be no fewer than fourteen days following the drawing.
 40 22    7.  Each electronic raffle entry shall reflect a single
 40 23 unique printed entry number on the entry.
 40 24    8.  The licensed qualified organization shall use a manual
 40 25 draw procedure for the electronic raffle which ensures a draw
 40 26 number is randomly selected as a winner from the entries sold.
 40 27    a.  The winning entry shall be verified as a sold and valid
 40 28 entry prior to awarding the prize.
 40 29    b.  The drawing of the winning entry shall be done in such
 40 30 manner as to allow the purchasers to observe the drawing.
 40 31    9.  If the prize is not claimed, the licensed qualified
 40 32 organization shall donate the unclaimed prize to an
 40 33 educational, civic, public, charitable, patriotic, or religious
 40 34 use.
 40 35    10.  The department may determine any other requirements for
 41  1 conducting an electronic raffle by rule.
 41  2    Sec. 39.  NEW SECTION.  99B.26  Game nights.
 41  3    1.  A licensed qualified organization may conduct one game
 41  4 night per calendar year subject to the provisions of this
 41  5 section.
 41  6    2.  A licensed qualified organization conducting a game
 41  7 night may do any of the following during the game night:
 41  8    a.  Charge an entrance fee or a fee to participate in the
 41  9 games.
 41 10    b.  Award cash or merchandise prizes in any games of
 41 11 skill, games of chance, casino=style games, or card games in
 41 12 an aggregate amount not to exceed ten thousand dollars and
 41 13 no participant shall win more than a total of five thousand
 41 14 dollars.
 41 15    c.  Allow participants at the game night that do not have
 41 16 a bona fide social relationship with the sponsor of the game
 41 17 night.
 41 18    d.  Allow participants to wager their own funds and pay an
 41 19 entrance or other fee for participation, but participants shall
 41 20 not be allowed to expend more than a total of two hundred fifty
 41 21 dollars for all fees and wagers.
 41 22    3.  Except as provided by section 99B.62, a person or
 41 23 organization that has not been issued a qualified organization
 41 24 license under section 99B.12B shall not be authorized to
 41 25 conduct a game night as authorized by this section.
 41 26    Sec. 40.  NEW SECTION.  99B.41  Definitions.
 41 27    For purposes of this subchapter, unless the context
 41 28 otherwise requires:
 41 29    1.  "Public place" means an indoor or outdoor area, whether
 41 30 privately or publicly owned, to which the public has access
 41 31 by right or by invitation, expressed or implied, whether by
 41 32 payment of money or not, but not a place when used exclusively
 41 33 by one or more individuals for a private gathering or other
 41 34 personal purpose.
 41 35    2.  "Social gambling" means an activity in which social games
 42  1 are played between individuals for any sum of money or other
 42  2 property of any value.
 42  3    3.  "Social games" or "social game" means card and parlor
 42  4 games, including but not limited to poker, pinochle, pitch, gin
 42  5 rummy, bridge, euchre, hearts, cribbage, dominoes, checkers,
 42  6 chess, backgammon, pool, and darts.  "Social games" do not
 42  7 include casino=style games, except poker.
 42  8    4.  "Sports betting pool" or "pool" means a game in which
 42  9 the participants select a square on a grid corresponding to
 42 10 numbers on two intersecting sides of the grid and winners
 42 11 are determined by whether the square selected corresponds to
 42 12 numbers relating to an athletic event in the manner prescribed
 42 13 by the rules of the game.
 42 14    Sec. 41.  NEW SECTION.  99B.42  Social gambling general
 42 15 requirements.
 42 16    1.  Social gambling is lawful under section 99B.6, 99B.9,  or
 42 17 99B.12, when all of the following requirements are met:
 42 18    a.  The gambling occurs between two or more people who are
 42 19 together for purposes other than social gambling.  A social
 42 20 relationship must exist beyond that apparent in the gambling
 42 21 situation.
 42 22    b.  The gambling shall not take place on a gaming floor,
 42 23 as defined in section 99F.1, licensed by the state racing and
 42 24 gaming commission created in section 99D.5.
 42 25    c.  Concealed numbers or conversion charts are not used to
 42 26 play any game.
 42 27    d.  A game is not adapted with any control device to permit
 42 28 manipulation of the game by the operator in order to prevent a
 42 29 player from winning or to predetermine who the winner will be.
 42 30    e.  The object of the game is attainable and possible to
 42 31 perform under the rules stated from the playing position of the
 42 32 player.
 42 33    f.  The game must be conducted in a fair and honest manner.
 42 34    g.  A person shall not receive or have any fixed or
 42 35 contingent right to receive, directly or indirectly, any amount
 43  1 wagered or bet or any portion of amounts wagered or bet, except
 43  2 an amount which the person wins as a participant while playing
 43  3 on the same basis as every other participant.
 43  4    h.  A cover charge, participation charge, or other charge
 43  5 shall not be imposed upon a person for the privilege of
 43  6 participating in or observing the social gambling, and a
 43  7 rebate, discount, credit, or other method shall not be used
 43  8 to discriminate between the charge for the sale of goods
 43  9 or services to participants in the social gambling and the
 43 10 charge for the sale of goods or services to nonparticipants.
 43 11 Satisfaction of an obligation into which a member of an
 43 12 organization enters to pay at regular periodic intervals a
 43 13 sum fixed by that organization for the maintenance of that
 43 14 organization is not a charge which is prohibited by this
 43 15 paragraph.
 43 16    i.  A participant shall not win or lose more than a total of
 43 17 fifty dollars or equivalent consideration in one or more games
 43 18 permitted by this subchapter at any time during any period of
 43 19 twenty=four consecutive hours or over that entire period.
 43 20    j.  A participant is not participating as an agent of another
 43 21 person.
 43 22    k.  A representative of the department or a law enforcement
 43 23 agency is immediately admitted, upon request, to the premises
 43 24 with or without advance notice.
 43 25    l.  A person shall not engage in bookmaking on the premises.
 43 26    2.  The social gambling licensee is strictly accountable for
 43 27 compliance with this section. Proof of an act constituting
 43 28 a violation is grounds for revocation of the license issued
 43 29 pursuant to section 99B.6 or 99B.9 if the licensee permitted
 43 30 the violation to occur when the licensee knew or had reasonable
 43 31 cause to know of the act constituting the violation.
 43 32    3.  A participant in a social game or pool which is not in
 43 33 compliance with this section shall only be subject to a penalty
 43 34 under section 99B.15 if the participant has knowledge of or
 43 35 reason to know the facts constituting the violation.
 44  1    4.  The social gambling licensee, and every agent of the
 44  2 licensee who is required by the licensee to exercise control
 44  3 over the use of the premises, who knowingly permits or engages
 44  4 in an act or omission which constitutes a violation of this
 44  5 subchapter is subject to a penalty under section 99B.15.  A
 44  6 licensee has knowledge of an act or omission if any agent of
 44  7 the licensee has knowledge of the act or omission.
 44  8    Sec. 42.  NEW SECTION.  99B.51  Definitions.
 44  9    As used in this subchapter, unless the context otherwise
 44 10 requires:
 44 11    1.  "Distributor" means a person who owns an electrical or
 44 12 mechanical amusement device registered as provided in section
 44 13 99B.53 that is offered for use at more than a single location
 44 14 or premise.
 44 15    2.  "Manufacturer" means a person who originally produces,
 44 16 or purchases an originally produced amusement device or
 44 17 an originally produced motherboard that will be installed
 44 18 into, an amusement device required to be registered under
 44 19 this subchapter for the purposes of reselling such device or
 44 20 motherboard.
 44 21    3.  "Owner" means a person who owns an operable amusement
 44 22 device required to be registered under section 99B.53 at no
 44 23 more than a single location or premise.
 44 24    Sec. 43.  NEW SECTION.  99B.52  Electrical or mechanical
 44 25 amusement devices.
 44 26    1.  A person may own, possess, and offer for use at any
 44 27 location an electrical or mechanical amusement device, except
 44 28 for an amusement device required to be registered pursuant to
 44 29 section 99B.53. If the provisions of this section and other
 44 30 applicable provisions of this subchapter are complied with, the
 44 31 use of an electrical or mechanical amusement device shall not
 44 32 be deemed gambling.  All electrical or mechanical amusement
 44 33 devices shall comply with this section.
 44 34    2.  A prize of merchandise not exceeding fifty dollars in
 44 35 value shall be awarded for use of an electrical or mechanical
 45  1 amusement device. An electrical or mechanical amusement device
 45  2 may be designed or adapted to award a prize of one or more
 45  3 free games or portions of games without payment of additional
 45  4 consideration by the participant.
 45  5    3.  A prize of cash shall not be awarded for use of an
 45  6 electrical or mechanical amusement device.
 45  7    4.  An amusement device shall not be designed or adapted to
 45  8 cause or to enable a person to cause the release of free games
 45  9 or portions of games when designated as a potential award for
 45 10 use of the device, and shall not contain any meter or other
 45 11 measurement device for recording the number of free games or
 45 12 portions of games which are awarded.
 45 13    5.  An amusement device shall not be designed or adapted to
 45 14 enable a person using the device to increase the chances of
 45 15 winning free games or portions of games by paying more than is
 45 16 ordinarily required to play the game.
 45 17    6.  An award given for the use of an amusement device shall
 45 18 only be redeemed on the premises where the device is located
 45 19 and only for merchandise sold in the normal course of business
 45 20 for the premises.
 45 21    7.  The department may determine any other requirements
 45 22 by rule.  Rules adopted pursuant to this section shall be
 45 23 formulated in consultation with affected state agencies and
 45 24 industry and consumer groups.
 45 25    Sec. 44.  NEW SECTION.  99B.53  Electrical or mechanical
 45 26 amusement devices == registration required.
 45 27    1.  In addition to the requirements of section 99B.52,
 45 28 an electrical or mechanical amusement device in operation
 45 29 or distributed in this state that awards a prize where the
 45 30 outcome is not primarily determined by skill or knowledge of
 45 31 the operator shall be registered by the department as provided
 45 32 in this section.
 45 33    2.  Except as provided in subsection 3, an electrical or
 45 34 mechanical amusement device requiring registration shall be
 45 35 located on premises for which a class "A", class "B", class
 46  1 "C", special class "C", or class "D" liquor control license has
 46  2 been issued pursuant to chapter 123.
 46  3    3.  a.  An electrical or mechanical amusement device
 46  4 requiring registration may be located on premises for which a
 46  5 class "B" or class "C" beer permit has been issued pursuant to
 46  6 chapter 123, but the department shall not initially register
 46  7 an electrical or mechanical amusement device to an owner or
 46  8 distributor for a location for which a class "B" or class "C"
 46  9 beer permit has been issued pursuant to chapter 123 on or after
 46 10 April 28, 2004.
 46 11    b.  A distributor that owns an amusement device at a location
 46 12 for which only a class "B" or class "C" beer permit has been
 46 13 issued pursuant to chapter 123 shall not relocate an amusement
 46 14 device registered as provided in this section to a location
 46 15 other than a location for which a class "A", class "B", class
 46 16 "C", special class "C", or class "D" liquor license has been
 46 17 issued and shall not transfer, assign, sell, or lease an
 46 18 amusement device registered as provided in this section to
 46 19 another person for which only a class "B" or class "C" beer
 46 20 permit has been issued pursuant to chapter 123 after April 28,
 46 21 2004.
 46 22    c.  If ownership of the location changes, the class "B"
 46 23 or class "C" beer permit does not lapse, and the device is
 46 24 not removed from the location, the device may remain at the
 46 25 location.
 46 26    4.  An electrical or mechanical amusement device required to
 46 27 be registered and at a location for which only a class "B" or
 46 28 class "C" beer permit has been issued pursuant to chapter 123
 46 29 shall include on the device a security mechanism which prevents
 46 30 the device from being operated by a person until action is
 46 31 taken by the owner or owner's designee to allow the person to
 46 32 operate the device.
 46 33    5.  a.  For a qualified organization, no more than four
 46 34 electrical or mechanical amusement devices registered as
 46 35 provided in this section shall be permitted or offered for use
 47  1 in any single location or premises meeting the requirements of
 47  2 this section.
 47  3    b.  For all other persons, no more than two electrical or
 47  4 mechanical amusement devices registered as provided in this
 47  5 section shall be permitted or offered for use in any single
 47  6 location or premises meeting the requirements of this section.
 47  7    6.  The total number of electrical or mechanical amusement
 47  8 devices registered by the department under this section shall
 47  9 not exceed six thousand nine hundred twenty=eight.
 47 10    7.  Each person owning an electrical or mechanical amusement
 47 11 device in this state shall submit annually an application
 47 12 form designated by the department that shall contain the
 47 13 information required by the department by rule and a fee of
 47 14 twenty=five dollars for each device required to be registered.
 47 15 If approved, the department shall issue an annual registration
 47 16 tag.
 47 17    8.  A new amusement device registration tag shall be
 47 18 obtained if electronic or mechanical components have been
 47 19 adapted, altered, or replaced and such adaptation, alteration,
 47 20 or replacement changes the operational characteristics of
 47 21 the amusement device including but not limited to the game
 47 22 being changed.  The amusement device shall not be placed
 47 23 into operation prior to obtaining a new amusement device
 47 24 registration tag.
 47 25    9.  An electrical or mechanical amusement device required
 47 26 to be registered under this section shall only be leased or
 47 27 purchased from a manufacturer or distributor registered with
 47 28 the department under section 99B.10A.
 47 29    10.  A person owning or leasing an electrical or mechanical
 47 30 amusement device required to be registered by this section
 47 31 shall display the registration tag as required by rules adopted
 47 32 by the department.
 47 33    11.  A person owning or leasing an electrical or mechanical
 47 34 amusement device required to be registered by this section
 47 35 shall not allow the electrical or mechanical amusement device
 48  1 to be operated or made available for operation with an expired
 48  2 registration.
 48  3    12.  A person or employee of a person owning or leasing
 48  4 an electrical or mechanical amusement device required to be
 48  5 registered by this section shall not advertise or promote the
 48  6 availability of the device to the public as anything other than
 48  7 an electrical or mechanical amusement device pursuant to rules
 48  8 adopted by the department.
 48  9    13.  A person owning or leasing an electrical or mechanical
 48 10 amusement device required to be registered by this section
 48 11 shall not relocate and place into operation an amusement device
 48 12 in any location other than a location which has been issued
 48 13 an appropriate liquor control license in good standing and to
 48 14 which the device has been appropriately registered with the
 48 15 department.
 48 16    14.  A counting mechanism which establishes the volume of
 48 17 business of the electrical or mechanical amusement device shall
 48 18 be included on each device required to be registered by this
 48 19 section.  The department and the department of public safety
 48 20 shall have immediate access to the information provided by the
 48 21 counting mechanism.
 48 22    15.  An electrical or mechanical amusement device required
 48 23 to be registered as provided by this section shall not be a
 48 24 gambling device, as defined in section 725.9, or a device that
 48 25 plays poker, blackjack, or keno.
 48 26    Sec. 45.  NEW SECTION.  99B.54  Electrical or mechanical
 48 27 amusement devices == criminal penalties.
 48 28    1.  A person who violates any provision of section 99B.52 or
 48 29 99B.53, except as specified in subsection 2, commits a serious
 48 30 misdemeanor.
 48 31    2.  A person who violates any provision of section 99B.52,
 48 32 subsection 2 or 6; or section 99B.53, subsection 4, 8, 10, 11,
 48 33 12, or 13, shall be subject to the following:
 48 34    a.  For a first offense under an applicable subsection, the
 48 35 person commits a simple misdemeanor, punishable as a scheduled
 49  1 violation pursuant to section 805.8C, subsection 4, paragraph
 49  2 "b".
 49  3    b.  For a second or subsequent offense under the same
 49  4 applicable subsection, the person commits a serious
 49  5 misdemeanor.
 49  6    3.  Notwithstanding any provision of section 99B.52 or
 49  7 99B.53 to the contrary, the following shall apply:
 49  8    a.  An individual other than an owner or distributor of an
 49  9 amusement device may operate an amusement device, whether or
 49 10 not the amusement device is owned, possessed, or offered for
 49 11 use in compliance with section 99B.52 or 99B.53.
 49 12    b.  A distributor shall not be liable for a violation of
 49 13 section 99B.52 or 99B.53 unless the distributor or an employee
 49 14 of the distributor intentionally violates a provision of
 49 15 section 99B.52 or 99B.53.
 49 16    Sec. 46.  NEW SECTION.  99B.62  Game nights == licensing
 49 17 exceptions.
 49 18    1.  A person other than a qualified organization may lawfully
 49 19 conduct a game night without a license, and may award cash or
 49 20 merchandise prizes, under the following conditions:
 49 21    a.  A bona fide social, employment, or trade or professional
 49 22 association relationship exists between the sponsors and the
 49 23 participants.
 49 24    b.  The participants pay no consideration of any nature,
 49 25 either directly or indirectly, to participate in the games.
 49 26    c.  All money, play money, or other items of no intrinsic
 49 27 value which may be wagered are provided to the participant
 49 28 free, and the sponsor conducting the game receives no
 49 29 consideration, either directly or indirectly, other than
 49 30 goodwill.
 49 31    d.  The games may be conducted at any location, except at a
 49 32 fair or a location for which a license is required pursuant to
 49 33 section 99B.3.
 49 34    e.  During the entire time activities permitted by this
 49 35 subsection are being engaged in, no other gambling is engaged
 50  1 in at the same location.
 50  2    2.  A person or an organization may sponsor one or more game
 50  3 nights using play money for participation by students without
 50  4 the person or organization obtaining a license otherwise
 50  5 required by this chapter if the person or organization obtains
 50  6 prior approval for the game night from the board of directors
 50  7 of the accredited public school or the authorities in charge of
 50  8 the nonpublic school accredited by the state board of education
 50  9 for whose students the game night is to be held.
 50 10    3.  A gambling device intended for use or used as provided in
 50 11 this section is exempt from the provisions of section 725.9,
 50 12 subsection 2.
 50 13    Sec. 47.  REPEAL.  Sections 99B.2, 99B.4, 99B.5, 99B.7,
 50 14 99B.8, 99B.9A, 99B.10, 99B.16, and 99B.18, Code 2015, are
 50 15 repealed.
 50 16    Sec. 48.  LICENSED QUALIFIED ORGANIZATION == INITIAL
 50 17 ANNUAL REPORT.  Notwithstanding any provision of section
 50 18 99B.16A, subsection 3, to the contrary, the first annual
 50 19 report submitted by a licensed qualified organization to the
 50 20 department of inspections and appeals after July 1, 2015, shall
 50 21 be submitted by January 31, 2017, and shall cover the period of
 50 22 July 1, 2015, through December 31, 2016.
 50 23                           DIVISION II
 50 24                     COORDINATING AMENDMENTS
 50 25    Sec. 49.  Section 99.1A, unnumbered paragraph 2, Code 2015,
 50 26 is amended to read as follows:
 50 27    The provisions of this section do not apply to games of
 50 28 skill, games of chance, or raffles social and charitable
 50 29 gambling conducted pursuant to chapter 99B or to devices lawful
 50 30 under section 99B.10 99B.52 or 99B.53.
 50 31    Sec. 50.  Section 99D.8, unnumbered paragraph 1, Code 2015,
 50 32 is amended to read as follows:
 50 33    A qualifying organization, as defined in section
 50 34 513(d)(2)(C) of the Internal Revenue Code, as defined in
 50 35 section 422.3, exempt from federal income taxation under
 51  1 sections 501(c)(3), 501(c)(4), or 501(c)(5) of the Internal
 51  2 Revenue Code or a nonprofit corporation organized under the
 51  3 laws of this state, whether or not it is exempt from federal
 51  4 income taxation, which is organized to promote those purposes
 51  5 enumerated in section 99B.7, subsection 3, paragraph "b"
 51  6 distribute funds for educational, civic, public, charitable,
 51  7 patriotic, or religious uses, as defined in section 99B.1,
 51  8 or which regularly conducts an agricultural and educational
 51  9 fair or exposition for the promotion of the horse, dog, or
 51 10 other livestock breeding industries of the state, or an agency,
 51 11 instrumentality, or political subdivision of the state, may
 51 12 apply to the commission for a license to conduct horse or dog
 51 13 racing. The application shall be filed with the administrator
 51 14 of the commission at least sixty days before the first day
 51 15 of the horse race or dog race meeting which the organization
 51 16 proposes to conduct, shall specify the day or days when and
 51 17 the exact location where it proposes to conduct racing, and
 51 18 shall be in a form and contain information as the commission
 51 19 prescribes.
 51 20    Sec. 51.  Section 99F.5, subsection 1, Code 2015, is amended
 51 21 to read as follows:
 51 22    1.  A qualified sponsoring organization may apply to the
 51 23 commission for a license to conduct gambling games on an
 51 24 excursion gambling boat or gambling structure as provided in
 51 25 this chapter. A person may apply to the commission for a
 51 26 license to operate an excursion gambling boat. An operating
 51 27 agreement entered into on or after May 6, 2004, between
 51 28 a qualified sponsoring organization and an operator of an
 51 29 excursion gambling boat or gambling structure shall provide for
 51 30 a minimum distribution by the qualified sponsoring organization
 51 31 for educational, civic, public, charitable, patriotic, or
 51 32 religious uses as defined in section 99B.7, subsection 3,
 51 33 paragraph "b" 99B.1, that averages at least three percent
 51 34 of the adjusted gross receipts for each license year. The
 51 35 application shall be filed with the administrator of the
 52  1 commission at least ninety days before the first day of the
 52  2 next excursion season as determined by the commission, shall
 52  3 identify the excursion gambling boat upon which gambling games
 52  4 will be authorized, shall specify the exact location where
 52  5 the excursion gambling boat will be docked, and shall be in
 52  6 a form and contain information as the commission prescribes.
 52  7 The minimum capacity of an excursion gambling boat or gambling
 52  8 structure is two hundred fifty persons.
 52  9    Sec. 52.  Section 99F.6, subsection 4, paragraph a,
 52 10 subparagraph (2), Code 2015, is amended to read as follows:
 52 11    (2)  A qualified sponsoring organization licensed to operate
 52 12 gambling games under this chapter shall distribute the receipts
 52 13 of all gambling games, less reasonable expenses, charges,
 52 14 taxes, fees, and deductions allowed under this chapter, as
 52 15 winnings to players or participants or shall distribute the
 52 16 receipts for educational, civic, public, charitable, patriotic,
 52 17 or religious uses as defined in section 99B.7, subsection 3,
 52 18 paragraph "b" 99B.1. However, a licensee to conduct gambling
 52 19 games under this chapter shall, unless an operating agreement
 52 20 for an excursion gambling boat otherwise provides, distribute
 52 21 at least three percent of the adjusted gross receipts for
 52 22 each license year for educational, civic, public, charitable,
 52 23 patriotic, or religious uses as defined in section 99B.7,
 52 24 subsection 3, paragraph "b" 99B.1. However, if a licensee
 52 25 who is also licensed to conduct pari=mutuel wagering at a
 52 26 horse racetrack has unpaid debt from the pari=mutuel racetrack
 52 27 operations, the first receipts of the gambling games operated
 52 28 within the racetrack enclosure less reasonable operating
 52 29 expenses, taxes, and fees allowed under this chapter shall be
 52 30 first used to pay the annual indebtedness.
 52 31    Sec. 53.  Section 331.304, subsection 2, Code 2015, is
 52 32 amended by striking the subsection.
 52 33    Sec. 54.  Section 423.3, subsection 62, Code 2015, is amended
 52 34 to read as follows:
 52 35    62.  The sales price from the sale of raffle tickets for a
 53  1 raffle licensed and conducted at a fair pursuant to section
 53  2 99B.5 99B.24.
 53  3    Sec. 55.  Section 805.8C, subsection 4, Code 2015, is amended
 53  4 to read as follows:
 53  5    4.  Electrical and or mechanical amusement device violations.
 53  6    a.  For violations of legal age for operating an electrical
 53  7 and or mechanical amusement device required to be registered as
 53  8 provided in section 99B.10, subsection 1, paragraph "f" 99B.53,
 53  9 pursuant to section 99B.10C, subsection 1, the scheduled fine
 53 10 is two hundred fifty dollars. Failure to pay the fine by a
 53 11 person under the age of eighteen shall not result in the person
 53 12 being detained in a secure facility.
 53 13    b.  For first offense violations concerning electrical and
 53 14  or mechanical amusement devices as provided in section 99B.10,
 53 15 subsection 3 99B.54, subsection 2, the scheduled fine is two
 53 16 hundred fifty dollars.
 53 17                          DIVISION III
 53 18                     CODE EDITOR DIRECTIVES
 53 19    Sec. 56.  CODE EDITOR DIRECTIVE.
 53 20    1.  The Code editor is directed to make the following
 53 21 transfers:
 53 22    a.  Section 99B.3 to section 99B.31.
 53 23    b.  Section 99B.5A to section 99B.22.
 53 24    c.  Section 99B.6 to section 99B.43.
 53 25    d.  Section 99B.7A to section 99B.32.
 53 26    e.  Section 99B.7B to section 99B.27.
 53 27    f.  Section 99B.9 to section 99B.44.
 53 28    g.  Section 99B.10A to section 99B.56.
 53 29    h.  Section 99B.10B to section 99B.55.
 53 30    i.  Section 99B.10C to section 99B.57.
 53 31    j.  Section 99B.10D to section 99B.58.
 53 32    k.  Section 99B.11 to section 99B.61.
 53 33    l.  Section 99B.11A, as enacted in this Act, to section
 53 34 99B.11.
 53 35    m.  Section 99B.12 to section 99B.45.
 54  1    n.  Section 99B.12A to section 99B.23.
 54  2    o.  Section 99B.12B, as enacted in this Act, to section
 54  3 99B.12.
 54  4    p.  Section 99B.13 to section 99B.2.
 54  5    q.  Section 99B.13A, as enacted in this Act, to section
 54  6 99B.13.
 54  7    r.  Section 99B.14 to section 99B.3.
 54  8    s.  Section 99B.14A, as enacted in this Act, to section
 54  9 99B.14.
 54 10    t.  Section 99B.15 to section 99B.4.
 54 11    u.  Section 99B.15A, as enacted in this Act, to section
 54 12 99B.15.
 54 13    v.  Section 99B.16A, as enacted in this Act, to section
 54 14 99B.16.
 54 15    w.  Section 99B.17 to section 99B.5.
 54 16    x.  Section 99B.19 to section 99B.6.
 54 17    y.  Section 99B.20 to section 99B.7.
 54 18    z.  Section 99B.21 to section 99B.8.
 54 19    aa.  Section 99B.21A, as enacted in this Act, to section
 54 20 99B.21.
 54 21    2.  The Code editor is directed to create seven new
 54 22 subchapters in chapter 99B as follows:
 54 23    a.  Subchapter I shall be entitled "general provisions" and
 54 24 include sections 99B.1 through 99B.10.
 54 25    b.  Subchapter II shall be entitled "qualified
 54 26 organizations" and include sections 99B.11 through 99B.20.
 54 27    c.  Subchapter III shall be entitled "charitable gambling"
 54 28 and include sections 99B.21 through 99B.30.
 54 29    d.  Subchapter IV shall be entitled "other activities
 54 30 requiring licensure" and include sections 99B.31 through
 54 31 99B.40.
 54 32    e.  Subchapter V shall be entitled "social gambling" and
 54 33 include sections 99B.41 through 99B.50.
 54 34    f.  Subchapter VI shall be entitled "electrical or
 54 35 mechanical amusement devices" and include sections 99B.51
 55  1 through 99B.60.
 55  2    g.  Subchapter VII shall be entitled "activities not
 55  3 requiring licensure" and include sections 99B.61 and 99B.62.
 55  4    3.  The Code editor may modify subchapter titles if necessary
 55  5 and is directed to correct internal references in the Code as
 55  6 necessary due to enactment of this section.
 55  7                           EXPLANATION
 55  8 The inclusion of this explanation does not constitute agreement with
 55  9 the explanation's substance by the members of the general assembly.
 55 10    This bill provides for the reorganization and modification
 55 11 of provisions in Code chapter 99B governing games of skill or
 55 12 chance, and raffles.
 55 13    DIVISION I == SOCIAL AND CHARITABLE GAMBLING PROVISIONS.
 55 14  The bill makes a variety of changes to Code section 99B.1
 55 15 (definitions).  The bill eliminates definitions for
 55 16 "authorized", "controlling shareholder", "eligible applicant",
 55 17 "posted", and "unrelated entity".  New definitions for
 55 18 "build=up or pyramid", "calendar raffles", "casino=style
 55 19 games", "gambling", "game nights", and "licensed charitable
 55 20 organization" are added.  In addition, current definitions
 55 21 or descriptions in Code section 99B.7 for "qualified
 55 22 organizations", "charitable uses", "educational, civic, public,
 55 23 charitable, patriotic, or religious uses", and "public uses"
 55 24 are moved to Code section 99B.1. Existing definitions in Code
 55 25 section 99B.1 are also modified.  The definition for "amusement
 55 26 concession" is amended to reference the games authorized and
 55 27 not the location of where the games are played.  "Bingo" is
 55 28 amended to allow symbols or pictures to be used in playing
 55 29 bingo and "bingo occasion" is amended to specify when a bingo
 55 30 occasion ends.  "Merchandise" is amended to provide that it
 55 31 includes goods or services bought or sold in the regular course
 55 32 of business and that a gift card not redeemable for cash is
 55 33 considered merchandise.  Other definitions in Code section
 55 34 99B.1 are moved and made applicable to a subchapter of the
 55 35 reorganized Code chapter.
 56  1 Code section 99B.3, concerning amusement concessions, is
 56  2 amended.  The Code section, consistent with the change in the
 56  3 definition of amusement concession, focuses on the type of
 56  4 gambling activity allowed and eliminates existing locational
 56  5 requirements for the activity.  The Code section is amended
 56  6 to increase the maximum value of prizes from $50 to $100 and
 56  7 increases the maximum cost to play a game from $3 to $5.  The
 56  8 Code section is amended to specify what constitutes and does
 56  9 not constitute allowable repurchase of prizes.
 56 10    Code section 99B.4, providing for permitted locations of
 56 11 amusement concessions, is repealed.
 56 12    Code section 99B.5 (raffles conducted at a fair) is
 56 13 repealed.  The bill consolidates provisions governing raffles
 56 14 in new Code section 99B.24.
 56 15    Code section 99B.6 (games where liquor or beer is sold) is
 56 16 rewritten by the bill.  Restrictions on the locations where the
 56 17 games may be conducted are unchanged and allowable games are
 56 18 defined as social gambling but remain unchanged.  Provisions
 56 19 of existing Code section 99B.6 applicable to lawful social
 56 20 gambling that may occur between individuals or in public places
 56 21 in addition to locations where liquor or beer is sold are moved
 56 22 to new Code section 99B.42.
 56 23    Code section 99B.7 (games conducted by qualified
 56 24 organizations) is repealed.  Several provisions of the Code
 56 25 section are moved and modified in new Code sections governing
 56 26 qualified organization licensing as provided in the bill.
 56 27    Code section 99B.7A (manufacturers and distributors of
 56 28 bingo equipment and supplies == license) is amended to apply
 56 29 to manufacturers and distributors of electronic raffle
 56 30 systems.  In addition, the amended Code section provides for
 56 31 a single annual license for manufacturers and distributors of
 56 32 $1,000 instead of a $1,000 manufacturers license and a $500
 56 33 distributor license.
 56 34    Code section 99B.7B (card game tournaments conducted by
 56 35 qualified organizations representing veterans) is amended to
 57  1 provide that a qualified organization representing veterans
 57  2 shall apply for a qualified organization license under new Code
 57  3 section 99B.12B to conduct a card game tournament.
 57  4    Code section 99B.8 (annual game night) is repealed.
 57  5 Provisions governing licensed and unlicensed game nights are
 57  6 included in new Code sections 99B.26 and 99B.62.
 57  7    Code section 99B.9 (gambling in public places) is rewritten
 57  8 by the bill.  Current provisions relative to the license fee
 57  9 and the public places in which social gambling may be conducted
 57 10 are unchanged.  Provisions of existing Code section 99B.9
 57 11 applicable to lawful social gambling that may occur between
 57 12 individuals or where liquor or beer is sold are moved to new
 57 13 Code section 99B.42.
 57 14    Code section 99B.9A, concerning exceptions for qualified
 57 15 organizations to conduct bingo in certain locations, is
 57 16 repealed.
 57 17    Code section 99B.10, concerning electrical and mechanical
 57 18 amusement devices, is repealed.  New Code sections 99B.52,
 57 19 99B.53, and 99B.54, all governing electrical or mechanical
 57 20 amusement devices, include provisions contained in current Code
 57 21 section 99B.10.
 57 22    Code section 99B.10A, concerning registration of electrical
 57 23 and mechanical amusement device manufacturers, distributors,
 57 24 and for=profit owners, is amended by eliminating specific
 57 25 reference to a manufacturer's representation in the category of
 57 26 persons required to be registered under this Code section.
 57 27    Code section 99B.10B, is amended to allow service for
 57 28 actions relative to denial, suspension, or revocation of a
 57 29 registration of an electrical or mechanical amusement device by
 57 30 means authorized by Code chapter 17A and to permit decisions
 57 31 relative to these actions to be delivered by electronic mail.
 57 32    Code sections 99B.10C and 99B.10D are amended to reflect
 57 33 updated internal code references in Code chapter 99B.
 57 34    Code section 99B.11, concerning bona fide contests, is
 57 35 amended by providing categories that include current bona fide
 58  1 contests and by then allowing contests that fit each of the
 58  2 categories.  The bill also allows, as an additional category,
 58  3 trivia and trading card contests.
 58  4    New Code section 99B.11A provides definitions applicable
 58  5 to qualified organizations and charitable gambling.  New
 58  6 definitions include "electronic bingo equipment" and several
 58  7 categories of raffles based on the value of prizes that may be
 58  8 awarded.  The new raffle definitions are "large raffle", "small
 58  9 raffle", "very large raffle", and "very small raffle".
 58 10    Code section 99B.12 (games between individuals) is stricken
 58 11 and rewritten.  The changes primarily eliminate provisions
 58 12 applicable to social gambling generally that are moved to new
 58 13 Code section 99B.42.
 58 14    New Code section 99B.12B provides for qualified organization
 58 15 licenses.  The Code section identifies provisions generally
 58 16 applicable to all licenses issued to a qualified organization
 58 17 and provides for the fees and applicable games that may be
 58 18 conducted pursuant to a two=year, one=year, 180=day, 90=day,
 58 19 and 14=day qualified organization license.  Current provisions
 58 20 in Code section 99B.7 relative to licenses for public and
 58 21 nonpublic schools and for school districts are moved to this
 58 22 new Code section.
 58 23    New Code section 99B.13A provides for general requirements
 58 24 applicable to any gambling conducted by a qualified
 58 25 organization.  The requirements include provisions on
 58 26 displaying the license, where gambling activities under
 58 27 the license may be conducted, participation in gambling
 58 28 requirements, and game=specific requirements.
 58 29    New Code section 99B.14A provides for the distribution of
 58 30 proceeds by a licensed qualified organization.  Most provisions
 58 31 governing distribution of proceeds are moved from current Code
 58 32 section 99B.7.  However, the bill provides that reasonable
 58 33 expenses that may be retained by a licensed qualified
 58 34 organization shall not exceed 40 percent of net receipts.
 58 35 Current law limits reasonable expenses to 25 percent of net
 59  1 receipts.
 59  2    Code section 99B.15, providing for the applicability of the
 59  3 Code chapter and penalties, is stricken and rewritten.  The
 59  4 Code section provides that a person who knowingly fails to
 59  5 comply with the requirements of Code chapter 99B commits a
 59  6 serious misdemeanor and that a person who intentionally files a
 59  7 false or fraudulent report or application commits a fraudulent
 59  8 practice under Code chapter 714.
 59  9    New Code section 99B.15A provides general provisions
 59 10 governing prizes awarded by a licensed charitable organization.
 59 11 The Code section provides that merchandise prizes shall not
 59 12 exceed $10,000 and cash can only be awarded in bingo and
 59 13 raffles.
 59 14    Code section 99B.16, concerning the criminal penalty for a
 59 15 willful failure to maintain or submit records, is repealed.
 59 16 Criminal penalties relative to reports and applications are
 59 17 moved to Code section 99B.15.
 59 18    Code section 99B.16A provides for records and reports
 59 19 required of licensed qualified organizations.  The Code section
 59 20 requires an annual report to be submitted by January 31 for the
 59 21 prior calendar year.  The bill provides that the initial annual
 59 22 report shall be submitted by January 31, 2017, for the period
 59 23 beginning July 1, 2015, and ending December 31, 2016.
 59 24    Code section 99B.17, providing that gambling on credit is
 59 25 unlawful and including an exception, is rewritten by the bill.
 59 26 The rewritten Code section allows payment by check, electronic
 59 27 check, debit card, or credit card for gambling activities
 59 28 under Code chapter 99B, except that only cash payments are
 59 29 allowed for social gambling, registered amusement devices, and
 59 30 amusement concessions not at a permanent location.
 59 31    Code section 99B.18 (company games) is repealed.  Games
 59 32 authorized under this Code section are moved to new Code
 59 33 section 99B.62 governing unlicensed game nights.
 59 34    New Code section 99B.21A establishes requirements for a
 59 35 licensed qualified organization conducting bingo.  The Code
 60  1 section provides operational requirements, prize requirements
 60  2 as an exception to the general prize requirements in new
 60  3 Code section 99B.15A, equipment requirements, and accounting
 60  4 requirements.  Most of the accounting requirements are moved
 60  5 from Code section 99B.2 and other requirements are moved from
 60  6 Code section 99B.7.  As far as prizes, the new Code section
 60  7 limits cash prizes and merchandise prizes to $250 per game of
 60  8 bingo instead of $100 as currently provided in Code section
 60  9 99B.7.  For jackpot bingo games, the new Code section allows
 60 10 the prize to start at no more $500, instead of the current
 60 11 $300.
 60 12    New Code section 99B.24 establishes requirements for a
 60 13 licensed qualified organization conducting a raffle.  The
 60 14 Code section establishes operational requirements relative
 60 15 to conducting a raffle and authorizes a licensed qualified
 60 16 organization to conduct one very large raffle per year upon
 60 17 submission of an additional fee.  The bill defines "very large
 60 18 raffle" as a raffle where the cumulative value of cash and
 60 19 prizes is more than $100,000 but not more than $200,000 or
 60 20 the prize is real property.  The bill also allows a qualified
 60 21 organization to conduct one very small raffle per calendar
 60 22 year without a license and without adhering to the reporting
 60 23 requirements of new Code section 99B.16A.  A "very small
 60 24 raffle" is defined in the bill as a raffle where the cumulative
 60 25 value of the prize or prizes is $1,000 or less and the value of
 60 26 all entries sold is $1,000 or less.
 60 27    New Code section 99B.25 allows a licensed qualified
 60 28 organization with a two=year license to conduct a raffle
 60 29 using an electronic raffle system.  The bill allows only one
 60 30 electronic raffle per calendar day and specifies how the
 60 31 raffle is to be conducted and the information necessary on an
 60 32 electronic raffle receipt.
 60 33    New Code section 99B.26 allows a licensed qualified
 60 34 organization to conduct one game night per calendar year.
 60 35 Current provisions specific to game nights conducted by a
 61  1 licensed qualified organization in Code section 99B.8 are moved
 61  2 to this new Code section.  In addition, the expanded prize
 61  3 authorization for certain qualified organizations, such as for
 61  4 veterans and voluntary emergency services providers, in current
 61  5 Code section 99B.8, subsection 6, is made applicable to all
 61  6 licensed qualified organizations.
 61  7    New Code section 99B.41 provides definitions specific to
 61  8 social gambling.  The definition for "social games" is moved
 61  9 from current Code section 99B.12, and the definition for
 61 10 "sports betting pool" is moved from the definition of "pool"
 61 11 in current Code section 99B.6.
 61 12    New Code section 99B.42 provides general requirements
 61 13 applicable to social gambling.  Requirements in current Code
 61 14 sections 99B.6, 99B.9, and 99B.12 that are applicable to social
 61 15 gambling regardless of location are generally moved to this new
 61 16 Code section.
 61 17    New Code section 99B.51 includes definitions of
 61 18 "distributor", "manufacturer", and "owner", for purposes of
 61 19 electrical or mechanical amusement devices.  The definitions
 61 20 are moved from current Code section 99B.1.  The definition
 61 21 of "manufacturer" is also modified to include a person who
 61 22 produces or purchases an originally produced motherboard.
 61 23    New Code section 99B.52 provides general requirements
 61 24 concerning all electrical or mechanical amusement devices.
 61 25 Current provisions in Code section 99B.10, subsection 1,
 61 26 paragraphs "a" through "d", "k", and "o" are moved to this new
 61 27 Code section.
 61 28    New Code section 99B.53 provides additional requirements for
 61 29 electrical or mechanical amusement devices that are required
 61 30 to be registered.  Current provisions in Code section 99B.10,
 61 31 subsection 1, governing amusement devices that are required to
 61 32 be registered are moved to this new Code section.
 61 33    New Code section 99B.54 establishes criminal penalties for
 61 34 violations of provisions concerning electrical or mechanical
 61 35 amusement devices.  The criminal offenses are similar to
 62  1 current provisions in Code section 99B.10, subsections 2
 62  2 through 5.
 62  3    New Code section 99B.62 allows game nights to be conducted
 62  4 without a license under certain circumstances.  Current Code
 62  5 section 99B.18, allowing company games, is moved to this new
 62  6 Code section and is expanded to allow all persons to also hold
 62  7 a casino night without a license subject to the requirements of
 62  8 the new Code section.  Current Code section 99B.8, subsection
 62  9 4, concerning school game nights, is moved to this new Code
 62 10 section.
 62 11    DIVISION II == COORDINATING AMENDMENTS.  Code section 99.1A,
 62 12 concerning nuisances, is amended to refer to Code chapter 99B
 62 13 as social and charitable gambling and to refer to amusement
 62 14 devices as authorized by new Code sections 99B.52 and 99B.53.
 62 15    Code section 99D.8, concerning qualified organization for
 62 16 purposes of horse or dog racing licenses, is amended to provide
 62 17 that the purposes of the organization shall be for educational,
 62 18 civic, public, charitable, patriotic, or religious uses, as
 62 19 defined in Code section 99B.1.
 62 20    Code sections 99F.5 and 99F.6 are amended to provide that
 62 21 the definition of "educational, civic, public, charitable,
 62 22 patriotic, or religious uses" is located in Code section 99B.1.
 62 23    Code section 331.304, concerning county powers, is amended
 62 24 by striking the provision concerning the power to determine
 62 25 locations of amusement concessions in accordance with current
 62 26 Code section 99B.4 as Code section 99B.4 is repealed by the
 62 27 bill.
 62 28    Code section 423.3, subsection 62, concerning exemptions
 62 29 from sales and use taxes, is amended to provide that the
 62 30 exemption is for raffles licensed pursuant to new Code section
 62 31 99B.24 and only conducted at a fair.  Current law references
 62 32 the current Code section, repealed in the bill, that limited
 62 33 the exemption to raffles conducted at a fair.
 62 34    Code section 805.8C, subsection 4, concerning scheduled
 62 35 violations relating to amusement devices, is amended to correct
 63  1 internal references to the applicable amusement device.
 63  2    DIVISION III == CODE EDITOR DIRECTIVES.  This division
 63  3 directs the Code editor to transfer existing and new Code
 63  4 sections in Code chapter 99B.  The division further directs the
 63  5 Code editor to reorganize the Code chapter by creating seven
 63  6 new subchapters, containing the transferred Code sections,
 63  7 and entitled "general provisions", "qualified organizations",
 63  8 "charitable gambling", "other activities requiring licensure",
 63  9 "social gambling", "electrical or mechanical amusement
 63 10 devices", and "activities not requiring licensure".
       LSB 1314SV (2) 86
       ec/nh