Text: SF2223            Text: SF2225
Complete Bill History


Senate File 2224

SENATE FILE BY BOLKCOM, HAHN, HANCOCK, ZAUN, ZIEMAN, RAGAN, DOTZLER, DEARDEN, and WIECK Passed Senate, Date Passed House, Date Vote: Ayes Nays Vote: Ayes Nays Approved A BILL FOR 1 An Act concerning the licensure, operation, and taxation of card 2 game tournaments and allowable prizes at annual game nights. 3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 4 TLSB 5903SS 81 5 ec/sh/8 PAG LIN 1 1 Section 1. Section 99B.1, Code 2005, is amended by adding 1 2 the following new subsection: 1 3 NEW SUBSECTION. 8A. "Card game" includes cribbage, 1 4 bridge, pinochle, hearts, spades, euchre, poker, and other 1 5 similar card games. 1 6 Sec. 2. Section 99B.1, subsection 25, Code 2005, is 1 7 amended to read as follows: 1 8 25. "Qualified organization" means any licensed 1 9 organization which dedicates the net receipts of a game of 1 10 skill, game of chance, or raffle as provided in section 99B.7 1 11 or complies with the requirements for conducting a card game 1 12 tournament as provided in section 99B.7B, and meets the 1 13 requirements of section 99B.7, subsection 1, paragraph "m". 1 14 Sec. 3. Section 99B.6, subsection 1, paragraph k, Code 1 15 2005, is amended to read as follows: 1 16 k. A person under the age of twenty=one years shall not 1 17 participate in the gambling except pursuant to sections 99B.3, 1 18 99B.4, 99B.5, and 99B.7, and 99B.7B. Any licensee knowingly 1 19 allowing a person under the age of twenty=one to participate 1 20 in the gambling prohibited by this paragraph or any person 1 21 knowingly participating in gambling with a person under the 1 22 age of twenty=one, is guilty of a simple misdemeanor. 1 23 Sec. 4. Section 99B.6, subsection 6, Code 2005, is amended 1 24 to read as follows: 1 25 6. A qualified organization may conduct games of skill, 1 26 games of chance, or raffles pursuant to section 99B.7, or a 1 27 card game tournament pursuant to section 99B.7B, in an 1 28 establishment that serves or sells alcoholic beverages, wine, 1 29 or beer as defined in section 123.3 if the games or raffles 1 30 are conducted pursuant to this chapter or rules adopted 1 31 pursuant to this chapter. 1 32 Sec. 5. NEW SECTION. 99B.7B CARD GAME TOURNAMENTS 1 33 CONDUCTED BY QUALIFIED ORGANIZATIONS. 1 34 1. Except as otherwise provided in section 99B.8, card 1 35 game tournaments lawfully may be conducted by a qualified 2 1 organization if all of the following are complied with: 2 2 a. The organization conducting the card game tournament 2 3 has been issued a license pursuant to subsection 3 and 2 4 prominently displays that license in the playing area of the 2 5 card game tournament. 2 6 b. The card games to be conducted during a card game 2 7 tournament, including the rules of each card game and how 2 8 winners are determined, shall be displayed prominently in the 2 9 playing area of the card game tournament. Each card game 2 10 shall be conducted in a fair and honest manner and shall not 2 11 be operated on a build=up or pyramid basis. Every participant 2 12 in a card game tournament must be given the same chances of 2 13 winning the tournament and shall not be allowed any second 2 14 chance entries or multiple entries in the card game 2 15 tournament. 2 16 c. Participation in a card game tournament conducted by a 2 17 qualified organization shall be open to the public. The cost 2 18 to participate in a card game tournament shall be limited to 2 19 fifty dollars and shall be the same for every participant in 2 20 the card game tournament. Participants in a card game 2 21 tournament shall be at least eighteen years of age. 2 22 d. Cash or merchandise prizes may be awarded during a card 2 23 game tournament and shall not exceed one thousand dollars. A 2 24 qualified organization shall distribute amounts awarded as 2 25 prizes on the day they are won and merchandise prizes shall 2 26 not be repurchased. An organization conducting a card game 2 27 tournament shall only display prizes in the playing area of 2 28 the card game tournament that can be won. 2 29 e. No person receives or has any fixed or contingent right 2 30 to receive, directly or indirectly, any profit, remuneration, 2 31 or compensation from or related to a game in a card game 2 32 tournament, except any amount which the person may win as a 2 33 participant on the same basis as the other participants. 2 34 f. A qualified organization shall not hold more than 2 35 fifteen card game tournaments per month. Card game 3 1 tournaments held under an annual game night license shall not 3 2 count towards the limit of fifteen card game tournaments per 3 3 month. With the exception of an annual game night license, no 3 4 more than three card game tournaments per week shall be held 3 5 within a structure or building and only one qualified 3 6 organization licensed to conduct card game tournaments under 3 7 this section may hold card game tournaments within a structure 3 8 or building. A qualified organization shall be allowed to 3 9 hold only one card game tournament during a calendar day. 3 10 g. At the conclusion of each card game tournament, the 3 11 person conducting the card game tournament shall announce the 3 12 gross receipts received, the total amount of money withheld 3 13 for expenses, and the amount withheld for state taxes. 3 14 h. The organization conducting the card game tournament 3 15 meets the requirements of section 99B.7, subsection 1, 3 16 paragraph "m". 3 17 i. The person conducting the card game tournament does 3 18 none of the following: 3 19 (1) Hold, currently, another license issued under this 3 20 section. 3 21 (2) Own or control, directly or indirectly, any class of 3 22 stock of another person who has been issued a license to 3 23 conduct games under this section. 3 24 (3) Have, directly or indirectly, an interest in the 3 25 ownership or profits of another person who has been issued a 3 26 license to conduct games under this section. 3 27 2. The qualified organization licensed to hold card game 3 28 tournaments under this section shall keep a journal of all 3 29 dates of events, amount of gross receipts, amount given out as 3 30 prizes, expenses, amount collected for taxes, and the amount 3 31 collected as revenue. 3 32 a. The amount collected by the qualified organization as 3 33 revenue is limited to ten percent of the gross receipts 3 34 collected from each event. 3 35 b. Each qualified organization shall withhold that portion 4 1 of the gross receipts subject to taxation pursuant to section 4 2 423.2, subsection 4, which shall be kept in a separate account 4 3 and sent to the state along with the organization's quarterly 4 4 report. 4 5 c. A qualified organization licensed to conduct card game 4 6 tournaments is allowed to withhold no more than five percent 4 7 of the gross receipts from each card game tournament for 4 8 qualified expenses. Qualified expenses include but are not 4 9 limited to hired staff to run the event and the purchase of 4 10 supplies and materials used in conducting card games. Any 4 11 money collected for expenses and not used by the end of the 4 12 calendar year shall be donated for educational, civic, public, 4 13 charitable, patriotic, or religious uses as described in 4 14 section 99B.7, subsection 3, paragraph "b". The qualified 4 15 organization shall attach a receipt for any donation made to 4 16 the fourth quarter quarterly report required to be submitted 4 17 pursuant to section 99B.2. 4 18 d. Each qualified organization licensed under this section 4 19 shall make recordkeeping and all deposit receipts available as 4 20 provided in section 99B.2, subsection 2. 4 21 3. An organization wishing to conduct card game 4 22 tournaments pursuant to this section as a qualified 4 23 organization shall submit an application and annual license 4 24 fee of two hundred dollars to the department. 4 25 Sec. 6. Section 99B.8, Code Supplement 2005, is amended by 4 26 adding the following new subsection: 4 27 NEW SUBSECTION. 6. Notwithstanding any provision of 4 28 section 99B.7 to the contrary, if the games are conducted by a 4 29 qualified organization issued a license pursuant to subsection 4 30 3, the sponsor may award cash or merchandise prizes in any 4 31 game of skill, game of chance, or card game lawfully conducted 4 32 during the annual game night in an amount not to exceed five 4 33 thousand dollars. 4 34 Sec. 7. Section 99B.9, subsection 1, unnumbered paragraph 4 35 1, Code 2005, is amended to read as follows: 5 1 Except as otherwise permitted by section 99B.3, 99B.5, 5 2 99B.6, 99B.7, 99B.7B, 99B.8, 99B.11, or 99B.12A, it is 5 3 unlawful to permit gambling on any premises owned, leased, 5 4 rented, or otherwise occupied by a person other than a 5 5 government, governmental agency, or governmental subdivision, 5 6 unless all of the following are complied with: 5 7 Sec. 8. Section 99B.12, subsection 1, unnumbered paragraph 5 8 1, Code 2005, is amended to read as follows: 5 9 Except in instances where because of the location of the 5 10 game or the circumstances of the game section 99B.3, section 5 11 99B.5, section 99B.6, section 99B.7, section 99B.7B, section 5 12 99B.8, or section 99B.9 is applicable, individuals may 5 13 participate in gambling specified in subsection 2, but only if 5 14 all of the following are complied with: 5 15 Sec. 9. Section 423.2, subsection 4, Code Supplement 2005, 5 16 is amended to read as follows: 5 17 4. A tax of five percent is imposed upon the sales price 5 18 derived from the operation of all forms of amusement devices 5 19 and games of skill, games of chance, raffles, and bingo games 5 20 as defined in chapter 99B, and card game tournaments conducted 5 21 under section 99B.7B, that are operated or conducted within 5 22 the state, the tax to be collected from the operator in the 5 23 same manner as for the collection of taxes upon the sales 5 24 price of tickets or admission as provided in this section. 5 25 Nothing in this subsection shall legalize any games of skill 5 26 or chance or slot=operated devices which are now prohibited by 5 27 law. 5 28 The tax imposed under this subsection covers the total 5 29 amount from the operation of games of skill, games of chance, 5 30 raffles, and bingo games as defined in chapter 99B, card game 5 31 tournaments conducted under section 99B.7B, and musical 5 32 devices, weighing machines, shooting galleries, billiard and 5 33 pool tables, bowling alleys, pinball machines, slot=operated 5 34 devices selling merchandise not subject to the general sales 5 35 taxes and on the total amount from devices or systems where 6 1 prizes are in any manner awarded to patrons and upon the 6 2 receipts from fees charged for participation in any game or 6 3 other form of amusement, and generally upon the sales price 6 4 from any source of amusement operated for profit, not 6 5 specified in this section, and upon the sales price from which 6 6 tax is not collected for tickets or admission, but tax shall 6 7 not be imposed upon any activity exempt from sales tax under 6 8 section 423.3, subsection 78. Every person receiving any 6 9 sales price from the sources described in this section is 6 10 subject to all provisions of this subchapter relating to 6 11 retail sales tax and other provisions of this chapter as 6 12 applicable. 6 13 EXPLANATION 6 14 This bill provides for the operation of card game 6 15 tournaments by qualified organizations. 6 16 The bill defines card game to include cribbage, bridge, 6 17 pinochle, hearts, spades, euchre, poker, and other similar 6 18 games. 6 19 The bill establishes new Code section 99B.7B providing for 6 20 card game tournaments conducted by a qualified organization. 6 21 The bill provides that only qualified organizations can 6 22 conduct a card game tournament and provides for a $200 annual 6 23 license fee. The bill requires the organization to display 6 24 the card games to be conducted during a tournament, including 6 25 the rules and manner of determining winners for each game. 6 26 The bill provides that participation in a tournament shall be 6 27 open to the public and the cost to participate shall not be 6 28 more than $50. A person under 18 cannot participate. The 6 29 bill provides that cash or merchandise of up to $1,000 can be 6 30 awarded at a tournament. The bill also provides that an 6 31 organization holding a license can hold no more than 15 6 32 tournaments a month and no more than three tournaments a week. 6 33 Only one tournament can be conducted by a qualified 6 34 organization in a calendar day. Card game tournaments held 6 35 under an annual game night license shall not count toward the 7 1 number of tournaments allowed. The bill also provides that 7 2 the qualified organization licensed to conduct card game 7 3 tournaments shall keep records of the dates of events, the 7 4 amount of gross receipts, the amount of prizes awarded, 7 5 expenses, amount collected for taxes, and revenue collected 7 6 for conducting card game tournaments. The bill allows 7 7 qualified organizations to collect up to 10 percent of gross 7 8 receipts as revenue and up to 5 percent of gross receipts for 7 9 expenses incurred in holding card game tournaments. Of the 7 10 amount withheld for expenses, any amounts collected but unused 7 11 for expenses by the end of a calendar year shall be donated 7 12 for charitable purposes. Any amounts donated shall be 7 13 indicated on the quarterly reports required to be submitted to 7 14 the department of inspection and appeals pursuant to Code 7 15 section 99B.2. 7 16 Code section 99B.8, concerning annual game nights, is also 7 17 amended to allow cash or merchandise prizes of up to $5,000. 7 18 The bill further amends Code section 423.2, concerning 7 19 sales taxes, to specifically provide that sales taxes shall be 7 20 imposed on card game tournaments in the same manner as for 7 21 other games as defined in Code chapter 99B. 7 22 LSB 5903SS 81 7 23 ec:nh/sh/8.3
Text: SF2223            Text: SF2225 Complete Bill History