General Assembly: 82 (2007 Regular GA) - Chapter 173 - Electrical and mechanical amusement devices


Published: 2007-05-24

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508LAWS OF THE EIGHTY-SECOND G.A., 2007 SESSIONCH. 172

a foster parent, in addition to the record checks conducted under subparagraph (1), the indi- vidual’s fingerprints shall be provided to the department of public safety for submission through the state criminal history repository to theUnitedStates department of justice, federal bureau of investigation for a national criminal history check. The cost of the criminal history check conducted under this subparagraph is the responsibility of the department of human services. NEW SUBPARAGRAPH. (1B) If the criminal and child abuse record checks conducted in

this state under subparagraph (1) for an individual being considered for licensure as a foster parent havebeen completed and the individual either does not have a record of crimeor found- ed abuse or the department’s evaluation of the record has determined that prohibition of the individual’s licensure is notwarranted, the individualmay be provisionally approved for licen- sure pending the outcome of the fingerprint-based criminal history check conducted pursuant to subparagraph (1A).

DIVISION VI PREADOPTIVE CARE PROVIDERS

Sec. 13. Section 232.91, subsection 3, Code 2007, is amended to read as follows: 3. Any personwho is entitled under section 232.88 to receive notice of a hearing concerning

a child shall be given the opportunity to be heard in any other review or hearing involving the child. A foster parent, relative, or other individual with whom a child has been placed for pre- adoptive care shall have the right to be heard in any proceeding involving the child.

Sec. 14. Section 232.116, subsection 2, paragraph c, Code 2007, is amended to read as fol- lows: c. For a child who has been placed in foster family care, any The relevant testimony or writ-

ten statement provided by the child’s foster parents that a foster parent, relative, or other indi- vidual with whom the child has been placed for preadoptive care or other care has a right to provide to the court.

Approved May 24, 2007

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CH. 173CH. 173

CHAPTER 173

ELECTRICAL AND MECHANICAL AMUSEMENT DEVICES

S.F. 510

AN ACT concerning electrical and mechanical amusement devices and providing penalties.

Be It Enacted by the General Assembly of the State of Iowa:

Section 1. Section 99B.1, subsections 12, 18, 19, and 23, Code 2007, are amended to read as follows: 12. “Distributor” means, for the purposes of sections 99B.10, 99B.10A, and 99B.10B, any

person that owns electrical andmechanical amusement devices registered as provided in sec- tion99B.10, subsection41, paragraph “f”, that areoffered foruse atmore thana single location or premises. 18. “Manufacturer” means, for the purposes of sections 99B.10, 99B.10A, and 99B.10B, any

person engaged in business in this state who originally produces an electrical andmechanical

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amusement device required to be registered under section 99B.10, subsection 4 1, paragraph “f”, or individual components for use in such a device. 19. “Manufacturer’s representative” means, for the purposes of sections 99B.10, 99B.10A,

and 99B.10B, any person engaged in business in this statewho promotes or sells electrical and mechanical amusement devices required to be registered under section 99B.10, subsection 4 1, paragraph “f”, or individual components for use in such devices on behalf of amanufacturer of such devices or components. 23. “Owner” means, for the purposes of sections 99B.10A and 99B.10B, any person who

owns an operable electrical and mechanical amusement device required to be registered un- der section 99B.10, subsection 4 1, paragraph “f”.

Sec. 2. Section 99B.10, Code 2007, is amended to read as follows: 99B.10 ELECTRICAL AND MECHANICAL AMUSEMENT DEVICES — PENALTIES. 1. It is lawful to own, possess, and offer for use by any person at any location an electrical

or mechanical amusement device and the use of the electrical or mechanical amusement de- vice shall not be deemed gambling, but only if all of the following are complied with: 1. a. A prize of merchandise exceeding five dollars in value or cash shall not be awarded

for use of the device. However, amechanical or amusement devicemay be designed or adapt- ed to award a prize or one or more free games or portions of games without payment of addi- tional consideration by the participant. b. A prize of cash shall not be awarded for use of the device. 2. c. An amusement device shall not be designed or adapted to cause or to enable a person

to cause the release of free games or portions of games when designated as a potential award for use of the device, and shall not contain anymeter or othermeasurement device for record- ing the number of free games or portions of games which are awarded. 3. d. An amusement device shall not be designed or adapted to enable a person using the

device to increase the chancesofwinning freegamesorportionsofgamesbypayingmore than is ordinarily required to play the game. e. An amusement device required to be registered as provided in paragraph “f”, shall not be

placed into operation without first obtaining a new amusement device registration tag if elec- tronic or mechanical components have been adapted, altered, or replaced and such adapta- tion, alteration, or replacement changes the operational characteristics of the amusement de- vice, including but not limited to the game being changed. 4. f. (1) Each electrical and mechanical amusement device in operation or distributed in

this state that awards a prize, as provided in this section, where the outcome is not primarily determined by the skill or knowledge of the operator, is registered by the department as pro- vided by this subsection lettered paragraph and is only located on premises for which a class “A”, class “B”, class “C”, special class “C”, or class “D” liquor control licenseor class “B”or class “C” beer permit has been issued pursuant to chapter 123. For an organization that meets the requirements of section 99B.7, subsection 1, paragraph “m”, nomore than four, and for all oth- er persons, nomore than two electrical andmechanical amusement devices registered as pro- vided by this subsection lettered paragraph shall be permitted or offered for use in any single location or premises for which a class “A”, class “B”, class “C”, or class “D” liquor control li- cense or class “B” or class “C” beer permit has been issued pursuant to chapter 123. (2) Each person owning an electrical and mechanical amusement device in this state shall

obtain a registration tag for each electrical and mechanical amusement device owned that is required to be registered as provided in this subsection lettered paragraph. Upon receipt and approval of an application and a fee of twenty-five dollars for each device required to be regis- tered, the department shall issue an annual registration tagwhich tag shall be displayed as re- quired by rules adopted by the department. The application shall be submitted on formsdesig- nated by the department and contain the information required by rule of the department. A registration may be renewed annually upon submission of a registration application and pay- ment of the annual registration fee and compliance with this chapter and the rules adopted pursuant to this chapter. However, the

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(3) The number of electrical and mechanical amusement devices registered by the depart- ment under this subsection lettered paragraph shall not exceed the total number of devices registeredby thedepartment as ofApril 28, 2004. In addition, the department shall not initially register an electrical and mechanical amusement device that is required to be registered as provided in this subsection lettered paragraph to an owner for a location forwhich only a class “B” or class “C” beer permit has been issued pursuant to chapter 123 on or after April 28, 2004. (4) A person owning or leasing an electrical andmechanical amusement device required to

be registeredunder this subsection letteredparagraph shall only ownor lease an electrical and mechanical amusement device that is required to be registered that has been purchased from amanufacturer, manufacturer’s representative, or distributor registered with the department under section 99B.10A and shall not advertise or promote the availability of the device to the public as anything other than an electrical and mechanical amusement device pursuant to rules adopted by the department. In addition, an (5) Anowner at a location forwhich only a class “B” or class “C” beer permit has been issued

pursuant to chapter 123 shall not relocate an amusement device registered as provided in this subsection lettered paragraph to a location other than the location of the device on April 28, 2004, and shall not transfer, assign, sell, or lease an amusement device registered as provided in this subsection lettered paragraph to another person for which only a class “B” or class “C” beer permit has been issued pursuant to chapter 123 after April 28, 2004. g. A person owning or leasing an electrical and mechanical amusement device required to

be registered under paragraph “f”, shall display the registration tag as required by rules adopt- ed by the department. h. A person owning or leasing an electrical and mechanical amusement device required to

be registered under paragraph “f” shall not allow the electrical and mechanical amusement device to be operated or made available for operation with an expired registration. i. A person owning or leasing an electrical and mechanical amusement device required to

be registered under paragraph “f”, or an employee of a person owning or leasing an electrical andmechanical amusement device required to be registered under paragraph “f”, shall not ad- vertise or promote the availability of the device to the public as anything other than an electri- cal and mechanical amusement device pursuant to rules adopted by the department. j. A person owning or leasing an electrical and mechanical amusement device required to

be registered under paragraph “f” shall not relocate and place into operation an amusement device in any location other than a location which has been issued an appropriate liquor con- trol license in good standing and to which the device has been appropriately registered with the department. 5. k. Anyawardsgiven for use of an amusement device shall only be redeemedon theprem-

iseswhere the device is located andonly formerchandise sold in thenormal course of business for the premises. 6. l. Each electrical ormechanical amusement device required to be registered as provided

by this section shall, by January 1, 2006, include on the device a counting mechanism which establishes the volumeof business of thedevice. Thedepartment and thedepartment of public safety shall have access to the information provided by the counting mechanism. 7. m. Each electrical or mechanical amusement device required to be registered as provid-

ed by this section at a location for which only a class “B” or class “C” beer permit has been is- sued pursuant to chapter 123 shall include on the device a securitymechanismwhich prevents the device frombeing operated by a person until action is taken by the owner or owner’s desig- nee to allow the person to operate the device. 8. n. An electrical or mechanical amusement device required to be registered as provided

in this section shall not be a gambling device, as defined in section 725.9, or a device that plays poker, blackjack, or keno. 9. o. Any other requirements as determined by the department by rule. Rules adopted pur-

suant to this subsection lettered paragraph shall be formulated in consultation with affected state agencies and industry and consumer groups. 2. A person who violates any provision of subsection 1, except as specified in subsection 3,

commits a serious misdemeanor.

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3. A person who violates any provision of subsection 1, paragraph “a”, “e”, “g”, “h”, “i”, “j”, “k”, or “m”, shall be subject to the following: a. For a first offense under an applicable paragraph, the person commits a simple misde-

meanor, punishable as a scheduled violation pursuant to section 805.8C, subsection 4, para- graph “b”. b. For a second or subsequent offense under the same applicable paragraph, the person

commits a serious misdemeanor. 4. ItNotwithstandinganyprovisionof this section to thecontrary, it is lawful for an individu-

al other than an owner or promoter of an amusement device to operate an amusement device, whether or not the amusement device is owned, possessed or offered for use in compliance with this section. The use of an amusement device which complies with this section shall not be deemed gam-

bling.

Sec. 3. Section 99B.10A, subsection 1, Code 2007, is amended to read as follows: 1. A person engaged in business in this state as amanufacturer,manufacturer’s representa-

tive, distributor, or for-profit owner of electrical andmechanical amusement devices required to be registered as provided in section 99B.10, subsection 4 1, paragraph “f”, shall registerwith the department. Each person who registers with the department under this section shall pay an annual registration fee in an amount as provided in subsection 2. Registration shall be sub- mitted on application forms designated by the department that shall contain the information required by the department by rule. The department shall adopt rules establishing the criteria for approval or denial of a registration application and providing for the submission of infor- mation to the department by a person registered pursuant to this section if information in the initial registration is changed, including discontinuing the business in this state.

Sec. 4. Section 99B.10A, subsection 2, paragraph c, Code 2007, is amended to read as fol- lows: c. For an owner of no more than two electrical and mechanical amusement devices regis-

tered as provided in section 99B.10, subsection 4 1, paragraph “f”, at a single location or prem- ises that is not an organization thatmeets the requirements of section 99B.7, subsection 1, par- agraph “m”, two thousand five hundred dollars.

Sec. 5. Section 99B.10B, subsection 1, Code 2007, is amended by striking the subsection and inserting in lieu thereof the following: 1. The department may deny, suspend, or revoke a registration issued pursuant to section

99B.10 or 99B.10A, if the department finds that an applicant, registrant, or an agent of a regis- trant violated or permitted a violation of a provision of section 99B.10, 99B.10A, or 99B.10C, or a departmental rule adopted pursuant to chapter 17A, or for any other cause for which the director of the departmentwould beorwouldhave been justified in refusing to issue a registra- tion, or upon the conviction of a person of a violation of this chapter or a rule adopted under this chapter which occurred on the premises where the registered amusement device is or is to be located. However, the denial, suspension, or revocation of a registration for one amuse- ment device does not require, but may result in, the denial, suspension, or revocation of the registration for a different amusement device held by the same distributor or owner.

Sec. 6. Section 99B.10B, subsection 2, Code 2007, is amended to read as follows: 2. a. The department shall revoke a registration issued pursuant to section 99B.10 or

99B.10A, for a period of ten years following at least ten days’ written notice and opportunity for an evidentiary hearing, if a person awards commits an offense of awarding a cash prize in violation of section 99B.10, subsection 1, paragraph “b”, pursuant to rules adopted by the de- partment. A person whose registration is revoked under this subsection who is a person for which a class “A”, class “B”, class “C”, special class “C”, or class “D” liquor control license has been issued pursuant to chapter 123 shall have the person’s liquor control license suspended for a period of fourteen days in the same manner as provided in section 123.50, subsection 3,

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paragraph “a”. In addition, a A person whose registration is revoked under this subsection who is a person for which only a class “B” or class “C” beer permit has been issued pursuant to chapter 123 shall have the person’s class “B” or class “C” beer permit suspended and that person’s sales tax permit suspended for a period of fourteen days in the samemanner as pro- vided in section 123.50, subsection 3, paragraph “a”. b. If a person owning or employed by an establishment having a class “A”, class “B”, class

“C”, special class “C”, or class “D” liquor control license issued pursuant to chapter 123 com- mits an offense of awarding a cashprize in violation of section 99B.10, subsection 1, paragraph “b”, pursuant to rules adopted by the department, the liquor control license of the establish- ment shall be suspended for a period of fourteen days in the samemanner as provided in sec- tion 123.50, subsection 3, paragraph “a”. If a person owning or employed by an establishment having a class “B” or class “C” beer permit issued pursuant to chapter 123 awards a cash prize in violation of section 99B.10, subsection 1, paragraph “b”, pursuant to rules adopted by the department, the beer permit of the establishment and the establishment’s sales tax permit shall be suspended for a period of fourteen days in the same manner as provided in section 123.50, subsection 3, paragraph “a”.

Sec. 7. Section 99B.10B, Code 2007, is amended by adding the following new subsection: NEW SUBSECTION. 3. a. The process for denial, suspension, or revocation of a registra-

tion issued pursuant to section 99B.10 or 99B.10A, shall commence by delivering to the appli- cant or registrant by certified mail, return receipt requested, or by personal service a notice setting forth the proposed action and the particular reasons for such action. b. (1) If a written request for a hearing is not received within thirty days after the mailing

or service of the notice, the denial, suspension, or revocation of a registrant1 shall become ef- fective pending a final determination by the department. The proposed action in the notice may be affirmed, modified, or set aside by the department in a written decision. (2) If a request for a hearing is timely receivedby thedepartment, the applicant or registrant

shall be given an opportunity for a prompt and fair hearing before the department and the de- nial, suspension, or revocation shall be deemed suspended until the departmentmakes a final determination. However, the director of the department may suspend a registration prior to a hearing if the director finds that the public integrity of the registered activity is compromised or there is a risk to public health, safety, or welfare. In addition, at any time during or prior to the hearing, the department may rescind the notice of the denial, suspension, or revocation uponbeing satisfied that the reasons for thedenial, suspension, or revocationhavebeenorwill be removed. On the basis of any such hearing, the proposed action in the notice may be af- firmed, modified, or set aside by the department in a written decision. The procedure govern- ing hearings authorized by this paragraph shall be in accordance with the rules promulgated by the department and chapter 17A. c. A copyof the final decision of thedepartment shall be sent by certifiedmail, return receipt

requested, or served personally upon the applicant or registrant. The applicant or registrant may seek judicial review in accordance with the terms of the Iowa administrative procedure Act, chapter 17A. d. If thedepartment finds cause fordenial of a registration issuedpursuant to section99B.10

or 99B.10A, the applicant shall not reapply for the same registration for a period of two years. If the department finds cause for a suspension or revocation, the registration shall be suspend- ed or revoked for a period not to exceed two years.

Sec. 8. Section 99B.10C, subsections 2 and 3, Code 2007, are amended to read as follows: 2. A person owning or leasing an electrical and mechanical amusement device, or an em-

ployee of a person owning or leasing an electrical and mechanical amusement device, who knowingly allows a person under the age of twenty-one years to participate in the operation of an electrical and mechanical amusement device, or a person who knowingly participates in the operation of an electrical and mechanical amusement device, with a person under the age of twenty-one years, is guilty of a simple misdemeanor.

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1 According to enrolled Act; the word “registration” probably intended

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3. For purposes of this section, an electrical and mechanical amusement device means an electrical and mechanical amusement device required to be registered as provided in section 99B.10, subsection 4 1, paragraph “f”.

Sec. 9. Section 805.8C, subsection 4, Code 2007, is amended to read as follows: 4. ELECTRICAL AND MECHANICAL AMUSEMENT DEVICE VIOLATIONS. a. For violations of legal age for operating an electrical and mechanical amusement device

required to be registered as provided in section 99B.10, subsection 4 1, paragraph “f”, pursuant to section 99B.10C, subsection 1, the scheduled fine is twohundred fifty dollars. Failure to pay the fine by a person under the age of eighteen shall not result in the person being detained in a secure facility. b. For first offense violations concerning electrical and mechanical amusement devices as

provided in section 99B.10, subsection 3, the scheduled fine is two hundred fifty dollars.

Approved May 24, 2007

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CH. 174CH. 174

CHAPTER 174

CREDIT UNIONS

S.F. 557

ANACT relating to the regulation of credit unions by revisingand reorganizing the Iowacredit union act, making conforming changes, and providing for taxes, fees, and penalties.

Be It Enacted by the General Assembly of the State of Iowa:

DIVISION I

Section 1. NEW SECTION. 533.101 TITLE. This chapter shall be known as the “Iowa Credit Union Act”.

Sec. 2. NEW SECTION. 533.102 DEFINITIONS. As used in this chapter, unless the context otherwise requires: 1. “Account insurance plan”means an arrangement providing account and share insurance

which is of a type authorized under section 533.307. 2. “Common bond” means the shared characteristic of members of a credit union. 3. “Credit union” means a cooperative, nonprofit association, organized or incorporated in

accordancewith the provisions of this chapter or under the laws of another state or the Federal Credit Union Act, 12 U.S.C. § 1751, et seq., for the purposes of creating a source of credit at a fair and reasonable rate of interest, of encouraging habits of thrift among its members, and ofprovidinganopportunity for itsmembers touseandcontrol their ownmoneyonademocrat- ic basis in order to improve their economic and social condition. A credit union is also a supervised financial organization as that term is defined and used

in chapter 537, the Iowa consumer credit code. 4. “Credit union service organization” means a corporation or limited partnership orga-

nized under state law to provide financial and financial-related services for one ormore credit unions, each of which owns part of the capital stock of the credit union service organization, as authorized under section 533.301, subsection 5, paragraph “f”, and which corporation or