Bill Text: IA SSB3181 | 2015-2016 | 86th General Assembly | Introduced
Bill Title: A study bill for an act relating to fantasy sports contests, providing for a tax, making an appropriation, making penalties applicable, and including implementation provisions.
Spectrum: Unknown
Status: (Introduced - Dead) 2016-04-13 - 12:30PM; RM 206 Ways and Means. [SSB3181 Detail]
Download: Iowa-2015-SSB3181-Introduced.html
Senate
Study
Bill
3181
-
Introduced
SENATE
FILE
_____
BY
(PROPOSED
COMMITTEE
ON
WAYS
AND
MEANS
BILL
BY
CHAIRPERSON
BOLKCOM)
A
BILL
FOR
An
Act
relating
to
fantasy
sports
contests,
providing
for
a
1
tax,
making
an
appropriation,
making
penalties
applicable,
2
and
including
implementation
provisions.
3
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
4
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Section
1.
NEW
SECTION
.
99E.1
Definitions.
1
As
used
in
this
chapter,
unless
the
context
otherwise
2
requires:
3
1.
“Applicant”
means
an
internet
fantasy
sports
contest
4
service
provider
applying
for
a
license
to
conduct
internet
5
fantasy
sports
contests
under
this
chapter.
6
2.
“Commission”
means
the
state
racing
and
gaming
commission
7
created
under
section
99D.5.
8
3.
“Fantasy
sports
contest”
includes
any
fantasy
or
9
simulated
game
or
contest
in
which
the
fantasy
sports
contest
10
operator
is
not
a
participant
in
the
game
or
contest,
the
value
11
of
all
prizes
and
awards
offered
to
winning
participants
are
12
established
and
made
known
to
the
participants
in
advance
13
of
the
contest,
all
winning
outcomes
reflect
the
relative
14
knowledge
and
skill
of
the
participants
and
shall
be
determined
15
by
accumulated
statistical
results
of
the
performance
of
16
individuals,
including
athletes
in
the
case
of
sporting
events,
17
in
a
fully
completed
game
or
contest,
and
no
winning
outcome
18
is
based
on
the
score,
point
spread,
or
any
performance
or
19
performances
of
any
single
actual
team
or
solely
on
any
single
20
performance
of
an
individual
athlete
or
player
in
any
single
21
actual
event.
For
purposes
of
this
subsection,
“athlete”
does
22
not
include
an
athlete
participating
in
any
extracurricular
23
interscholastic
athletic
contest
or
competition
which
is
24
sponsored
or
administered
by
an
organization
as
defined
25
in
section
280.13,
an
athlete
participating
in
any
amateur
26
athletic
contest
or
competition
in
which
all
participants
are
27
under
the
age
of
twenty-one,
or
an
athlete
participating
in
28
any
intercollegiate
sport
as
defined
in
section
9A.102.
In
29
addition,
for
purposes
of
this
subsection,
“fully
completed
game
30
or
contest”
means
the
entirety
of
the
game
or
contest,
and
not
31
merely
any
portion
thereof,
and
includes
the
entirety
of
a
game
32
or
contest
that
has
been
suspended
or
shortened
on
account
of
33
weather
or
other
natural
or
unforeseen
event.
34
4.
“Internet
fantasy
sports
contest”
means
a
method
of
35
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entering
a
fantasy
sports
contest
by
which
a
person
may
1
establish
an
account
with
an
internet
fantasy
sports
contest
2
service
provider,
deposit
money
into
the
account,
and
use
3
the
account
balance
for
entering
a
fantasy
sports
contest
by
4
utilizing
electronic
communication.
5
5.
“Internet
fantasy
sports
contest
adjusted
revenues”
means,
6
for
each
internet
fantasy
sports
contest,
the
amount
equal
to
7
the
total
charges
and
fees
collected
from
all
participants
8
entering
the
internet
fantasy
sports
contest
less
winnings
paid
9
to
participants
in
the
contest,
multiplied
by
the
resident
10
percentage.
11
6.
“Internet
fantasy
sports
contest
player”
means
a
person
12
who
is
at
least
twenty-one
years
of
age,
is
a
resident
of
13
this
state,
and
participates
in
an
internet
fantasy
sports
14
contest
operated
by
an
internet
fantasy
sports
contest
service
15
provider.
16
7.
“Internet
fantasy
sports
contest
service
provider”
means
17
a
person,
including
a
licensee
under
chapter
99D
or
99F,
who
18
conducts
an
internet
fantasy
sports
contest
as
authorized
by
19
this
chapter.
20
8.
“Resident
percentage”
means,
for
each
internet
fantasy
21
sports
contest,
the
percentage,
rounded
to
the
nearest
tenth
22
of
a
percent,
equal
to
the
total
charges
and
fees
collected
23
from
all
internet
fantasy
sports
contest
players
divided
by
the
24
total
charges
and
fees
collected
from
all
participants
in
the
25
internet
fantasy
sports
contest.
26
Sec.
2.
NEW
SECTION
.
99E.2
Internet
fantasy
sports
contests
27
authorized.
28
The
system
of
entering
an
internet
fantasy
sports
contest
as
29
provided
by
this
chapter
is
legal
when
conducted
by
a
licensed
30
internet
fantasy
sports
contest
service
provider
as
provided
in
31
this
chapter.
32
Sec.
3.
NEW
SECTION
.
99E.3
Commission
——
powers.
33
The
commission
shall
have
full
jurisdiction
over
and
shall
34
supervise
internet
fantasy
sports
contests
and
internet
fantasy
35
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sports
contest
service
providers
as
governed
by
this
chapter.
1
The
commission
shall
have
the
following
powers
and
shall
adopt
2
rules
pursuant
to
chapter
17A
to
implement
this
chapter:
3
1.
To
investigate
applicants
and
determine
the
eligibility
4
of
applicants
for
a
license
to
conduct
internet
fantasy
sports
5
contests.
6
2.
To
license
and
regulate
internet
fantasy
sports
contest
7
service
providers
subject
to
the
requirements
of
this
chapter.
8
3.
To
investigate
alleged
violations
of
this
chapter
9
or
the
commission
rules,
orders,
or
final
decisions
and
to
10
take
appropriate
disciplinary
action
against
a
licensee,
or
11
institute
appropriate
legal
action
for
enforcement,
or
both.
12
Information
gathered
during
an
investigation
is
confidential
13
during
the
pendency
of
the
investigation.
14
4.
To
assess
fines
and
revoke
or
suspend
licenses.
15
5.
To
require,
beginning
July
1,
2018,
licensees
to
16
establish
a
process
with
the
state
for
licensees
to
have
17
electronic
access
to
names
and
social
security
numbers
of
18
debtors
of
claimant
agencies
through
a
secured
interactive
19
internet
site
maintained
by
the
state.
20
6.
To
take
any
other
action
as
may
be
reasonable
or
21
appropriate
to
enforce
this
chapter
and
the
commission
rules.
22
Sec.
4.
NEW
SECTION
.
99E.4
Requirements
of
applicant
——
fee
23
——
penalty.
24
1.
An
applicant
for
a
license
to
conduct
internet
fantasy
25
sports
contests
shall
complete
and
sign
an
application
on
26
the
form
prescribed
and
published
by
the
commission.
The
27
application
shall
include
such
information
of
the
applicant
28
that
the
commission
deems
necessary
for
purposes
of
issuing
a
29
license
pursuant
to
this
chapter.
30
2.
An
applicant
shall
submit
fingerprints
and
information
31
that
the
commission
deems
necessary
to
the
commission
in
the
32
manner
prescribed
on
the
application
forms.
The
fingerprints
33
may
be
submitted
to
the
federal
bureau
of
investigation
by
the
34
department
of
public
safety
through
the
state
criminal
history
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repository
for
the
purpose
of
a
national
criminal
history
1
check.
2
3.
The
commission
shall
charge
the
applicant
a
fee
set
3
by
the
department
of
public
safety,
division
of
criminal
4
investigation,
to
defray
the
costs
associated
with
any
5
investigations
conducted
pursuant
to
the
requirements
of
this
6
section
concerning
the
applicant.
This
fee
is
in
addition
7
to
any
other
license
fee
charged
by
the
commission.
The
fee
8
may
be
retained
by
the
department
of
public
safety,
division
9
of
criminal
investigation,
and
shall
be
considered
repayment
10
receipts
as
defined
in
section
8.2.
11
4.
A
license
shall
not
be
granted
to
an
applicant
if
there
12
is
substantial
evidence
that
any
of
the
following
apply:
13
a.
A
license
issued
to
the
applicant
to
conduct
internet
14
fantasy
sports
contests
in
another
jurisdiction
has
been
15
revoked
by
an
entity
licensing
persons
to
conduct
such
contests
16
in
that
jurisdiction.
17
b.
The
applicant
has
not
demonstrated
financial
18
responsibility
sufficient
to
adequately
meet
the
requirements
19
of
the
enterprise
proposed.
20
c.
The
applicant
does
not
adequately
disclose
the
true
21
owners
of
the
enterprise
proposed.
22
d.
The
applicant
has
knowingly
made
a
false
statement
of
a
23
material
fact
to
the
commission.
24
e.
The
applicant
has
failed
to
meet
a
monetary
obligation
in
25
connection
with
conducting
an
internet
fantasy
sports
contest.
26
f.
The
applicant
is
not
of
good
repute
and
moral
character
27
or
the
applicant
has
pled
guilty
to,
or
has
been
convicted
of,
28
a
felony.
29
g.
Any
member
of
the
board
of
directors
of
the
applicant
is
30
not
twenty-one
years
of
age
or
older.
31
5.
A
person
who
knowingly
makes
a
false
statement
on
the
32
application
is
guilty
of
an
aggravated
misdemeanor.
33
6.
For
the
purposes
of
this
section,
“applicant”
includes
34
each
member
of
the
board
of
directors
of
an
internet
fantasy
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sports
contest
service
provider.
1
Sec.
5.
NEW
SECTION
.
99E.5
Licenses
——
fees
——
terms
and
2
conditions
——
revocation.
3
1.
If
the
commission
is
satisfied
that
the
requirements
4
of
this
chapter
and
its
rules
adopted
under
this
chapter
5
applicable
to
licensees
have
been
or
will
be
complied
with,
the
6
commission
shall
issue
a
license
for
a
period
of
not
more
than
7
three
years
to
an
applicant
to
conduct
internet
fantasy
sports
8
contests
in
this
state.
9
2.
A
licensed
internet
fantasy
sports
contest
service
10
provider
shall
comply
with
all
of
the
following
requirements:
11
a.
Prevent
employees
of
the
internet
fantasy
sports
contest
12
service
provider
and
family
members
related
within
the
second
13
degree
of
affinity
or
consanguinity
of
such
employees
from
14
competing
in
any
internet
fantasy
sports
contest
conducted
by
15
the
service
provider
in
which
the
service
provider
offers
a
16
cash
prize
over
five
dollars.
17
b.
Verify
that
an
internet
fantasy
sports
contest
player
is
18
twenty-one
years
of
age
or
older
and
is
a
resident
of
Iowa.
19
c.
Ensure
that
coaches,
officials,
players,
contestants,
20
or
other
individuals
who
participate
in
a
game
or
contest
21
that
is
the
subject
of
an
internet
fantasy
sports
contest
are
22
restricted
from
entering
an
internet
fantasy
sports
contest
in
23
which
the
outcome
is
determined,
in
whole
or
in
part,
by
the
24
accumulated
statistical
results
of
a
team
of
individuals
in
the
25
game
or
contest
in
which
they
participate.
26
d.
Allow
individuals
to
restrict
themselves
from
entering
27
an
internet
fantasy
sports
contest
conducted
by
the
internet
28
fantasy
sports
contest
service
provider
upon
request
and
take
29
reasonable
steps
to
prevent
those
individuals
from
entering
30
any
internet
fantasy
sports
contests
conducted
by
the
internet
31
fantasy
sports
contest
service
provider.
32
e.
Disclose
the
number
of
entries
a
single
internet
fantasy
33
sports
contest
player
may
submit
to
each
internet
fantasy
34
sports
contest
and
take
reasonable
steps
to
prevent
players
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from
submitting
more
than
the
allowable
number
of
entries
for
1
that
internet
fantasy
sports
contest.
2
f.
Segregate
internet
fantasy
sports
contest
player
funds
3
from
operational
funds
and
maintain
a
reserve
in
the
form
of
4
cash,
cash
equivalents,
an
irrevocable
letter
of
credit,
a
5
bond,
or
a
combination
thereof
in
the
amount
of
the
deposits
in
6
internet
fantasy
sports
contest
player
accounts
for
the
benefit
7
and
protection
of
internet
fantasy
sports
contest
player
8
funds
held
in
internet
fantasy
sports
contest
accounts
by
the
9
internet
fantasy
sports
contest
service
provider.
10
g.
Annually
contract
with
a
third
party
to
perform
an
11
independent
audit,
consistent
with
the
standards
established
12
by
the
public
company
accounting
oversight
board,
to
ensure
13
compliance
with
all
of
the
requirements
in
this
chapter
and
14
submit
the
results
of
the
independent
audit
to
the
commission.
15
h.
Pay
the
tax
as
provided
in
section
99E.6.
16
3.
The
annual
license
fee
to
conduct
internet
fantasy
sports
17
contests
shall
be
five
hundred
dollars.
Moneys
collected
by
18
the
commission
from
the
annual
license
fee
paid
under
this
19
subsection
shall
be
considered
repayment
receipts
as
defined
20
in
section
8.2.
21
4.
Upon
a
violation
of
any
of
the
conditions
listed
in
22
section
99E.4
or
this
section
by
a
licensee,
the
commission
23
shall
immediately
revoke
the
license.
24
Sec.
6.
NEW
SECTION
.
99E.6
Internet
fantasy
sports
contest
25
tax
——
rate
——
allocations.
26
1.
A
tax
of
seven
and
one-half
percent
is
imposed
on
27
internet
fantasy
sports
contest
adjusted
revenues.
The
tax
28
imposed
by
this
section
shall
be
paid
by
the
internet
fantasy
29
sports
contest
service
provider
to
the
commission
as
provided
30
by
the
commission.
31
2.
Of
the
revenues
collected
pursuant
to
this
section,
an
32
amount
equal
to
one-half
of
one
percent
of
internet
fantasy
33
sports
contest
adjusted
revenues
is
appropriated
to
the
34
department
of
public
health
for
purposes
of
the
gambling
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treatment
program
established
pursuant
to
section
135.150.
The
1
remaining
amount
of
the
revenues
collected
pursuant
to
this
2
section
shall
be
deposited
in
the
rebuild
Iowa
infrastructure
3
fund
created
in
section
8.57.
4
Sec.
7.
NEW
SECTION
.
99E.7
Internet
fantasy
sports
contests
5
——
age
restrictions.
6
A
person
under
the
age
of
twenty-one
years
shall
not
enter
an
7
internet
fantasy
sports
contest.
A
person
who
violates
this
8
section
with
respect
to
entering
an
internet
fantasy
sports
9
contest
commits
a
scheduled
violation
under
section
805.8C,
10
subsection
11.
11
Sec.
8.
NEW
SECTION
.
99E.8
Division
of
criminal
12
investigation.
13
The
division
of
criminal
investigation
of
the
department
of
14
public
safety
may
investigate
to
determine
licensee
compliance
15
with
the
requirements
of
this
chapter
.
Investigations
may
be
16
conducted
either
on
the
criminal
investigation
division’s
own
17
initiative
or
at
the
request
of
the
commission.
The
criminal
18
investigation
division
and
the
commission
shall
cooperate
to
19
the
maximum
extent
possible
on
an
investigation.
20
Sec.
9.
NEW
SECTION
.
99E.9
Setoff.
21
1.
A
licensee
or
a
person
acting
on
behalf
of
a
licensee
22
shall
be
provided
electronic
access
to
the
names
of
the
23
persons
indebted
to
a
claimant
agency
pursuant
to
the
process
24
established
pursuant
to
section
99E.3,
subsection
5
.
The
25
electronic
access
provided
by
the
claimant
agency
shall
include
26
access
to
the
names
of
the
debtors,
their
social
security
27
numbers,
and
any
other
information
that
assists
the
licensee
28
in
identifying
the
debtors.
If
the
name
of
a
debtor
provided
29
to
the
licensee
through
electronic
access
is
retrieved
by
the
30
licensee
and
the
winnings
are
equal
to
or
greater
than
one
31
thousand
two
hundred
dollars
per
occurrence,
the
retrieval
32
of
such
a
name
shall
constitute
a
valid
lien
upon
and
claim
33
of
lien
against
the
winnings
of
the
debtor
whose
name
is
34
electronically
retrieved
from
the
claimant
agency.
If
a
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debtor’s
winnings
are
equal
to
or
greater
than
one
thousand
two
1
hundred
dollars
per
occurrence,
the
full
amount
of
the
debt
2
shall
be
collectible
from
any
winnings
due
the
debtor
without
3
regard
to
limitations
on
the
amounts
that
may
be
collectible
in
4
increments
through
setoff
or
other
proceedings.
5
2.
The
licensee
is
authorized
and
directed
to
withhold
6
any
winnings
of
a
debtor
which
are
paid
out
directly
by
the
7
licensee
subject
to
the
lien
created
by
this
section
and
8
provide
notice
of
such
withholding
to
the
winner.
The
licensee
9
shall
pay
the
funds
over
to
the
collection
entity
which
10
administers
the
setoff
program
pursuant
to
section
8A.504
.
11
3.
Notwithstanding
any
other
provision
of
law
to
the
12
contrary,
the
licensee
may
provide
to
a
claimant
agency
all
13
information
necessary
to
accomplish
and
effectuate
the
intent
14
of
this
section
,
and
likewise
the
claimant
agency
may
provide
15
all
information
necessary
to
accomplish
and
effectuate
the
16
intent
of
this
section
.
17
4.
The
information
obtained
by
a
claimant
agency
from
the
18
licensee
in
accordance
with
this
section
shall
retain
its
19
confidentiality
and
shall
only
be
used
by
a
claimant
agency
in
20
the
pursuit
of
its
debt
collection
duties
and
practices.
An
21
employee
or
prior
employee
of
a
claimant
agency
who
unlawfully
22
discloses
any
such
information
for
any
other
purpose,
except
23
as
otherwise
specifically
authorized
by
law,
shall
be
subject
24
to
the
penalties
specified
by
law
for
unauthorized
disclosure
25
of
confidential
information
by
an
agent
or
employee
of
the
26
claimant
agency.
27
5.
The
information
obtained
by
a
licensee
from
a
claimant
28
agency
in
accordance
with
this
section
shall
retain
its
29
confidentiality
and
only
be
used
by
the
licensee
in
the
30
pursuit
of
debt
collection
duties
and
practices.
An
employee
31
or
prior
employee
of
a
licensee
who
unlawfully
discloses
any
32
such
information
for
any
other
purpose,
except
as
otherwise
33
specifically
authorized
by
law,
shall
be
subject
to
the
34
same
penalties
specified
by
law
for
unauthorized
disclosure
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of
confidential
information
by
an
agent
or
employee
of
the
1
licensee.
2
6.
Except
as
otherwise
provided
in
this
chapter
,
3
attachments,
setoffs,
or
executions
authorized
and
issued
4
pursuant
to
law
shall
be
withheld
if
timely
served
upon
the
5
licensee.
6
7.
A
claimant
agency
or
licensee,
acting
in
good
faith,
7
shall
not
be
liable
to
any
person
for
actions
taken
pursuant
to
8
this
section
.
9
Sec.
10.
NEW
SECTION
.
99E.10
Penalties.
10
In
addition
to
any
other
penalty
specified
in
this
chapter,
11
a
person
who
willfully
fails
to
comply
with
the
requirements
12
of
this
chapter
and
the
rules
adopted
pursuant
to
chapter
17A
13
commits
a
class
“D”
felony
and,
in
addition,
shall
be
barred
14
for
life
from
internet
fantasy
sports
contests.
15
Sec.
11.
Section
232C.4,
subsection
3,
Code
2016,
is
amended
16
to
read
as
follows:
17
3.
An
emancipated
minor
shall
remain
subject
to
voting
18
restrictions
under
chapter
48A
,
gambling
restrictions
under
19
chapter
99B
,
99D
,
99F
,
99G
,
or
725
,
internet
fantasy
sports
20
contest
restrictions
under
chapter
99E,
alcohol
restrictions
21
under
chapter
123
,
compulsory
attendance
requirements
under
22
chapter
299
,
and
cigarette
tobacco
restrictions
under
chapter
23
453A
.
24
Sec.
12.
Section
714B.10,
subsection
1,
Code
2016,
is
25
amended
to
read
as
follows:
26
1.
Advertising
by
sponsors
registered
pursuant
to
chapter
27
557B
,
licensed
pursuant
to
chapter
99B
,
or
regulated
pursuant
28
to
chapter
99D
,
99E,
99F
,
or
99G
.
29
Sec.
13.
Section
805.8C,
Code
2016,
is
amended
by
adding
the
30
following
new
subsection:
31
NEW
SUBSECTION
.
11.
Internet
fantasy
sports
contest
32
violations.
For
violations
of
legal
age
for
entering
an
33
internet
fantasy
sports
contest
under
section
99E.7,
the
34
scheduled
fine
is
five
hundred
dollars.
Failure
to
pay
the
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fine
by
a
person
under
the
age
of
eighteen
shall
not
result
in
1
the
person
being
detained
in
a
secure
facility.
2
Sec.
14.
IMPLEMENTATION
DATE.
The
following
provision
or
3
provisions
of
this
Act
shall
not
be
implemented
until
July
1,
4
2018:
5
1.
The
section
of
this
Act
enacting
section
99E.9.
6
EXPLANATION
7
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
8
the
explanation’s
substance
by
the
members
of
the
general
assembly.
9
This
bill
authorizes
internet
fantasy
sports
contests
10
and
provides
for
the
licensing,
regulation,
and
taxation
of
11
internet
fantasy
sports
contests.
12
New
Code
section
99E.1
provides
for
definitions.
A
“fantasy
13
sports
contest”
is
defined
as
any
fantasy
or
simulated
game
14
or
contest
in
which
all
prizes
and
awards
offered
to
winning
15
participants
are
established
and
made
known
in
advance
of
the
16
contest,
all
winning
outcomes
reflect
the
relative
knowledge
17
and
skill
of
the
participants
and
are
determined
predominantly
18
by
accumulated
statistical
results
of
the
performance
of
19
individuals
in
a
fully
completed
game
or
contest,
and
no
20
winning
outcome
is
based
on
the
score,
or
performance
of
any
21
single
actual
team
or
combination
of
such
teams
or
solely
22
on
any
single
performance
of
an
individual
athlete
in
any
23
single
actual
sporting
or
other
event.
The
bill
provides
that
24
for
purposes
of
this
definition,
an
athlete
does
not
include
25
an
athlete
participating
in
an
interscholastic
athletic
or
26
intercollegiate
sports
contest,
or
an
athlete
participating
27
in
an
amateur
athletic
contest
in
which
all
participants
are
28
under
21
years
of
age.
An
“internet
fantasy
sports
contest”
29
is
defined
as
a
method
of
entering
a
fantasy
sports
contest
by
30
establishing
an
account
with
an
internet
fantasy
sports
contest
31
service
provider.
An
”internet
fantasy
sports
contest
player”
32
is
defined
as
a
person
who
is
at
least
21
years
of
age
and
a
33
resident
of
this
state,
who
participates
in
an
internet
fantasy
34
sports
contest.
The
bill
also
defines
internet
fantasy
sports
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contest
adjusted
revenues,
internet
fantasy
sports
contest
1
service
provider,
and
resident
percentage.
2
New
Code
section
99E.2
provides
that
the
system
of
entering
3
an
internet
fantasy
sports
contest
is
legal
when
conducted
by
a
4
licensed
internet
fantasy
sports
contest
service
provider
as
5
provided
in
the
new
Code
chapter.
6
New
Code
section
99E.3
establishes
the
powers
of
the
racing
7
and
gaming
commission
in
relation
to
internet
fantasy
sports
8
contests
and
internet
fantasy
sports
contest
service
providers.
9
Specifically,
the
new
Code
section
authorizes
the
commission
to
10
investigate
and
license
internet
fantasy
sports
contest
service
11
providers,
assess
fines
and
revoke
or
suspend
licenses,
and
12
take
any
other
action
to
enforce
the
requirements
of
the
new
13
Code
chapter.
14
New
Code
section
99E.4
establishes
the
requirements
for
an
15
applicant
to
be
granted
a
license
to
conduct
internet
fantasy
16
sports
contests.
The
Code
section
allows
the
commission
17
to
charge
the
applicant
a
fee
for
the
department
of
public
18
safety,
division
of
criminal
investigation,
to
defray
the
19
costs
associated
with
any
investigation.
The
new
Code
20
section
provides
that
a
license
shall
not
be
issued
if
there
21
is
evidence
that
the
applicant
has
failed
to
meet
certain
22
qualifying
requirements.
A
person
who
knowingly
makes
a
23
false
statement
on
the
application
is
guilty
of
an
aggravated
24
misdemeanor.
25
New
Code
section
99E.5
establishes
the
terms
and
conditions
26
of
licenses
issued
to
conduct
internet
fantasy
sports
contests.
27
The
Code
section
provides
that
a
license
may
be
issued
for
28
a
period
of
not
more
than
three
years
and
provides
that
29
the
annual
license
fee
shall
be
$500.
The
new
Code
section
30
provides
that
a
licensed
internet
fantasy
sports
contest
31
service
provider
shall
prevent
employees
and
certain
family
32
members
from
participating
in
internet
fantasy
sports
contests,
33
verify
that
internet
fantasy
sports
contest
players
are
21
or
34
older
and
residents
of
this
state,
ensure
that
participants
in
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a
game
or
contest
shall
not
be
allowed
to
enter
an
internet
1
fantasy
sports
contest
involving
that
game
or
contest,
permit
2
individuals
to
restrict
themselves
from
entering
an
internet
3
fantasy
sports
contest,
perform
an
independent
audit,
and
pay
4
the
tax
imposed
by
the
new
Code
chapter.
5
New
Code
section
99E.6
provides
for
a
tax
of
7.5
percent
6
to
be
imposed
on
internet
fantasy
sports
contest
adjusted
7
revenues.
The
bill
defines,
in
new
Code
section
99E.1,
8
internet
fantasy
sports
contest
adjusted
revenues
as
the
total
9
of
fees
and
charges
collected,
less
winnings,
in
an
internet
10
fantasy
sports
contest
multiplied
by
the
percentage
of
fees
11
and
charges
paid
by
participants
who
are
residents
of
this
12
state
in
that
contest.
The
bill
provides
that
of
the
revenues
13
collected,
an
amount
equal
to
.5
percent
of
internet
fantasy
14
sports
contest
adjusted
revenues
is
appropriated
to
the
15
department
of
public
health
for
gambling
treatment
with
the
16
remainder
of
revenues
collected
to
be
deposited
in
the
rebuild
17
Iowa
infrastructure
fund.
18
New
Code
section
99E.7
provides
that
a
person
under
the
19
age
of
21
shall
not
enter
an
internet
fantasy
sports
contest.
20
A
person
who
violates
this
Code
section
commits
a
scheduled
21
violation
under
Code
section
805.8C
and
is
subject
to
a
$500
22
fine.
Code
section
805.8C
is
amended
to
reflect
this
violation
23
and
applicable
fine.
24
New
Code
section
99E.8
authorizes
the
division
of
criminal
25
investigation
of
the
department
of
public
safety
to
investigate
26
licensee
compliance
with
the
requirements
of
the
new
Code
27
chapter.
28
New
Code
section
99E.9
requires
a
licensee
to
offset
29
winnings
of
a
debtor
in
an
amount
equal
to
or
greater
than
30
$1,200,
subject
to
the
requirements
of
this
new
Code
section.
31
The
bill
provides
that
this
Code
section
shall
not
be
32
implemented
until
July
1,
2018.
33
New
Code
section
99E.10
provides
that,
in
addition
to
any
34
other
penalty
specified
in
the
new
Code
chapter,
a
person
who
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