SSB 1076 – ABD Omnibus Department Bill
SSB 1082 – Line of secession for the Governor and Lt. Governor
SSB 1141 – Prohibits a city or county from adopting or enforcing an ordinance
SSB 1153 – Eliminating the Education and Regional Telecommunications Councils
SSB 1168 – Sports Betting/Wagering and Fantasy Sports
SF 36 – Primary runoff election for a party’s nominee under 35 percent of vote
COMMITTEE ACTION:
SSB 1076 – ABD Omnibus Department Bill
SSB 1076 is the Alcoholic Beverages Division (ABD) departmental bill. It makes changes that will create clarity, improve readability and make the law easier for regulators to apply and enforce with consistency. This is largely a technical cleanup bill.
This bill removes references to a percentage of alcohol by weight from the definitions for alcoholic liquor, beer, high alcoholic content beer and wine. The definition for wine is further amended to provide for percentage of alcohol by volume.
It allows ABD to prescribe a uniform fee against certain licensees when they fail to maintain dramshop liability insurance and to assess a capped fee to recover administrative costs related to contested case proceedings through the administrative rules process.
The bill will allow confidentiality of records collected by the Division from licensees or permittees in conjunction with investigations, inspections and audits before administrative or criminal charges are filed. This proposed change will assist the regulator and protect the rights of businesses it regulates.
Sections 25, 37 and 44 require liquor, wine and beer manufacturers to share with the Division the records they are required to submit to the Alcohol and Tobacco Tax and Trade Bureau of the United States Department of the Treasury (TTB). This ensures that the Division has the information it needs to validate taxes owed to the state. Reciprocal language for class “A” native distilled spirits license holders was passed in 2017.
Other key changes in the bill include:
- Authorizing the Division to adopt rules to recover operational costs arising from the failure of licensees or permittees to remain in compliance with the law.
- Establishing uniform language regarding the types of action that may be taken as a result of a violation or the rules of the Division. Conforming changes are made throughout the chapter.
- Liquor fees-Sunday sales: Amended to eliminate the additional tax imposed on airlines.
- Beer permit or license required: The rewritten section relocates provisions in §123.144(2) and §123.146 that relate to how homemade beer can be used and how beer may be imported for personal use. These changes are intended to assist the reader by consolidating several related provisions into one section.
Three committee amendments were adopted:
1) To strike section 5, which would make ABD investigators peace officers.
2) To allow Hy-Vee and other stores to have a distribution center carry alcohol and deliver it to homes.
3) A technical clean up with how ABD retains a portion of bonds and payment by licensee.
[2/26: 14-0 (Excused: Feenstra)]
SSB 1082 – Line of secession for the Governor and Lt. Governor
SSB 1082 is an amendment to the Constitution of the State of Iowa relating to the line of secession for the Governor and Lt. Governor. The Legislature is starting this process over because the Secretary of State did not publish the legally required notices over the interim. The amendment would state that in the case of a temporary disability or an impeachment, the lieutenant governor will have the powers of the governor until the governor is able to resume the office. In the case of a permanent disability, death, resignation, or removal from office of the governor, the lieutenant governor will assume the office of the governor. In this case, the new governor will appoint a new lieutenant governor, who will have the same powers and duties as one who was elected, including the duty to act as governor, or to assume the office of the governor and appoint a new lieutenant governor.
The resolution, if adopted, would be published and then referred to the next 89th General Assembly for adoption, before being submitted to voters for ratification. A committee amendment strikes the requirement that the Secretary of State publish the amendment in the constitution.
[2/26: 14-0 (Excused: Feenstra)]
SSB 1141 – Prohibits a city or county from adopting or enforcing an ordinance
SSB 1141 takes away power from local government by prohibiting a city or county from adopting or enforcing an ordinance, regulation or restriction that would prevent a nonconforming use from continuing if the use was legal before. This local control reversal applies unless a discontinuance is necessary for the safety of life or property; the nonconforming use is legally abandoned; or the nonconforming use is enlarged or extended. Advocates for this bill say it codifies current case law. Opponents disagree, saying it expands beyond case law.
[2/21: 11-3 (No: Bisignano, Celsi, Jochum; Excused: Miller-Meeks)]
SSB 1153 – Eliminating the Education and Regional Telecommunications Councils
SSB 1153 eliminates the Education Telecommunication Council and Regional Telecommunications Councils (RTCs). In 1994, the Legislature established an 18-member Education Telecommunications Council to assist in scheduling and site-usage policies for educational users of the ICN. The council also recommended long-range plans for enhancements to educational applications. At the same time, Regional Telecommunications Councils were established in each of the 15 community college districts. The RTCs provide advice on local educational needs and coordinate program activities, including technical assistance for network classrooms in community centers and schools. General Fund dollars went to the Iowa Telecommunications and Technology Commission for distribution to the RTCs based on usage by the region. In previous years, total funding has been approximately $993,000 annually. This budget unit has not been funded since FY17.
[2/21: 14-0 (Excused: Miller-Meeks)]
SSB 1168 – Sports Betting/Wagering and Fantasy Sports
SSB 1168 defines “sports wagering” as acceptance of wagers on an authorized sporting event by any system of wagering authorized by the Racing and Gaming Commission. The Commission will adopt standards, including the scope and type of wagers allowed. It is the intent of the Legislature to establish sports wagering license fees, a tax on sports wagering net receipts and to provide for the allocation of revenues derived from the tax.
There are no tax rates or fee amounts listed in the bill. Instead, the bill states that it is the intent of the General Assembly to establish taxes and fees. After the bill was approved by the State Government Committee, it was referred to the Ways & Means Committee.
Under this proposal an “authorized sporting event” is a professional or collegiate sporting event. This would not allow betting on high school sports. Minor league or amateur sporting events may be allowed, but only if authorized by the Racing and Gaming Commission. Eligible bettors must be 21 or older and can place a bet at a “sports wagering area” in a casino or on a mobile device. To bet on a mobile device, an eligible bettor must establish an account at a casino and set up an “advance deposit” system before January 2021. After that, they can set up an advance deposit system online without going to the casino.
Racing and Gaming Oversight:
- Licensee must ensure reasonable commercial steps to prohibit coaches, athletic trainers, officials, players, participants or those employed in a position with direct involvement with such individuals from placing a wager.
- Problem gambling information from the Iowa Department of Public Health will be available through an online app, and voluntarily exclusion options will be extended to Sports Betting locations and the online app.
- The same licensee bonding requirements as other games applies.
- The same required reports and records of licensees applies, including promptly reporting any criminal or disciplinary proceedings, any abnormal sports wagering activity, and any other conduct with the potential to corrupt a wagering outcome of an authorized sporting event.
- The commission can share any information it receive with any law enforcement entity, sports team, sport’s governing body or regulatory agency deemed appropriate.
- Anyone taking online bets when not licensed by the state is guilty of a class D felony, punishable by no more than five years and a fine of not more than $7,500.
Fantasy Sports: SSB 1168 legalizes fantasy sports contests and Internet fantasy sports contest service providers. A person can establish an account with a fantasy sports provider, deposit money into the account, and use the money in the account to for entering a fantasy sports contest. It is the intent of the Legislature to establish sports wagering license fees, a tax on sports wagering net receipts and to provide for the allocation of revenues derived from the tax. There are no tax rates or fee amounts listed in the bill.
Fantasy Sports Definitions:
- Sports Contest: a simulated game in which prizes are established and made known in advance to all contestants. Prize winnings reflect the relative knowledge and skill of the participants and are determined by statistical results of the performance of individuals. No winning outcome is based on the score of an individual athlete in any single actual sporting or other event.
- Contest Player: participant in an Internet fantasy sports contest over 21.
- Service Provider: An Online Fantasy Sports Platform, a Racetrack (99D) or Gaming/Casino (99F). Two big daily online fantasy sports providers are the Draft Kings and FanDual.
Application for Service Provider: The same process as in other gaming applications applies, including FBI fingerprint background checks paid for by the application fee. Providers must ensure reasonable commercial steps to prohibit providers, relatives living with them and employees from competing in contests run by provider. Coaches, officials, players, athletic trainers, officials, players, participants or those employed in a position with direct involvement with such individuals cannot place wagers. Licenses are not issued for more than three years.
Penalties:
- Player Violations: A miscellaneous violation and is subject to a $500 fine.
- Service Providers Application False Statement: Aggravated misdemeanor.
- Anyone who willfully fails to comply with these requirements will be liable for a civil penalty of not more than $1,000 for each violation, not to exceed $10,000 for violations arising out of the same transaction or occurrence.
The bill also amends Qualified Sponsoring Organization (QSOs) Boards to include as ex officio, nonvoting members: one county supervisor and one member of a city council for each county and city that has a licensed gambling facility operated by the qualified sponsoring organization. The bill also modifies the chance odds in roulette games, with at least one game having a house edge under 3 percent. The bill takes effect upon enactment, and must be implemented no later than July 4, 2019.
[2/21: 8-6 (No: Bisignano, Celsi, Chapman, Jochum, Lykam, T. Taylor; Excused: Miller-Meeks)]
SF 36 – Primary runoff election for a party’s nominee under 35 percent of vote
SF 36 requires a primary runoff election to determine a party’s nominee in the case of an inconclusive primary election for certain offices. Under current law, an inconclusive primary occurs when no candidate receives at least 35 percent of the vote in the primary election. Current law provides that nominations following an inconclusive primary be filled by the party’s state convention, congressional district convention, party precinct committee members, county convention delegates or county convention precinct delegates, as applicable.
For elections with multiple seats on a board, the number of candidates in the primary runoff election will be equal to one more than the necessary number of nominations, and for elections for statewide office, congressional office and members of the Legislature, the two candidates who received the highest number of votes in the primary will be the candidates in the primary runoff.
A committee amendment was adopted to address concerns about the four-week timeframe to get ballots printed and conduct a state canvass.
[2/26: 14-0 (Excused: Feenstra)]