Item 1. Rescind subrule 5.4(7) and insert
in lieu thereof the following new subrule:
5.4(7)
Video recording. Licensees are required to
conduct continuous surveillance with the capability of video recording all
gambling activities under Iowa administrative rules 661-Chapter 141, promulgated
by the department of public safety.
a. “Gambling activities" means participating in or
wagering on gambling games on the gaming floor, the movement, storage, and
handling of uncounted gambling revenues, manual exchange of monies for forms of
wagering credit on the gaming floor, entrance of the public onto the gaming
floor, and any other activity as determined by the commission
administrator or administrator’s designee.
b. Commission and DCI representatives shall have
unrestricted access and use, including independent access capabilities, to both
live and recorded views and images of the surveillance system. A commission
representative may allow a gambling game to be placed in operation pending
approval under the administrative rules of 661--141.
Item 2. Amend subrule 5.4(8), paragraph
“a,” as follows:
a. Qualifying agreements. All contracts and business arrangements
entered into by a facility are subject to commission jurisdiction. Written and
verbal contracts and business arrangements involving a related party or in which
the term exceeds three years or the total value in a calendar year
exceeds $100,000 are agreements that qualify for submission to and
approval by the commission. For the purpose of this subrule, a qualifying
agreement shall be limited to:
Item 3. Amend subrule 5.4(8), paragraph “a,” sub paragraph
(3) as follows:
(3) A previously approved qualifying agreement, if consideration exceeds the
approved amount in a calendar year by the
greater of $100,000 or 25 percent.
Item 4. Rescind subrule 6.16(5) and reserve
Item 5. Amend Chapter 6 by adding the following new rule:
491-6.28(99D) Licensing. The owner (includes stable names, partnerships,
and corporations), and trainer of a horse entered to race must be licensed by
the first post time of the race card for the day in which the horse is entered.
Item 6. Amend subrule 10.6(2) by adding a new paragraph
“f,” as follows:
f. Consecutive days. No horse shall run on two consecutive calendar days.
Item 7. Amend rule 491-11.1(99F) by adding the following new
definitions in alphabetical order:
“Discount rate” means either the current prime rate as published in the Wall
Street Journal or a blended rate computed by obtaining quotes for the purchase
of qualified investments at least three times per month.
“Present value” means the current value of a future payment or series of
payments, discounted using the discount rate.
“Reserve” means an account with an independent financial institution or
brokerage firm consisting of cash and qualified investments used to satisfy
periodic payments of prizes.
Item 8. Amend subrule 11.12 (8), paragraphs “i,” and “j,”
as follows:
i. When a system jackpot is won, a person authorized to provide the multilink
and the trustee(s) provided for in paragraph “n,” subparagraph (1), shall
have the opportunity to inspect the machine, EPROM, the error events received by
the central system, and any other data which could reasonably be used to
ascertain the validity of the jackpot.
(1) The central system shall produce reports that will clearly demonstrate
the method of arriving at the payoff amount. This shall include the coins
contributed beginning with the polling cycle immediately following the previous
jackpot and will include all coins contributed up to, and including, the polling
cycle, which includes the jackpot signal. Coins contributed to and registered
by the system before the jackpot message is received will be deemed to have been
contributed to the progressive amount prior to the current jackpot. Coins
contributed to the system subsequent to the jackpot message’s being received as
well as coins contributed to the system before the jackpot message is received
by the system, but registered after the jackpot message is received at the
system, will be deemed to have been contributed to the progressive amount of the
next jackpot.
(2) The system jackpot may be disbursed in periodic payments as long as each
machine clearly displays the fact that the jackpot will be paid in such periodic
payments. In addition, the number of periodic payments and time between
payments must be clearly displayed on the face of the slot machine in a
nonmisleading manner.
(3) Two system jackpots which occur in the same polling cycle before the
progressive amount can reset will be deemed to have occurred simultaneously;
therefore, each winner shall receive the full amount shown on the system jackpot
meter.
j. Any person authorized to provide a multilink must supply to the commission
and the trustee(s), as requested, reports which support and verify the
economic activity of the system.
(1) Any person authorized to provide a multilink must supply to the
commission and the trustee(s), as requested, reports and information
indicating the amount of, and basis for, the current system jackpot. Such
reports may include an aggregate report and a detail report. The aggregate
report may show only the balancing of the system with regard to systemwide
totals. The detail report shall be in such form as to indicate for each
machine, summarized by location, the coin-in totals as such terms are commonly
understood in the industry.
(2) In addition, upon the invoicing of any facility participating in a
multilink, each such facility must be given a printout of each machine operated
by that facility, the coins contributed by each machine to the system jackpot
for the period for which an invoice is remitted, and any other information
required by the commission to confirm the validity of the facility’s
contributions to the system jackpot.
Item 9. Rescind subrule 11.12(8), paragraphs “m,” through
“o,” and insert in lieu thereof the following new paragraphs “m,”
through “p,” as follows:
m. A facility, or an entity that is licensed as a manufacturer or
distributor, shall provide the multilink, in accordance with a written agreement
which shall be reviewed and approved by the commission prior to offering the
jackpots.
n. The payment of any system jackpot offered
on a multilink shall be administered by the person authorized to provide the
multilink and such person shall have primary liability for payment of any system
jackpot it administers. In addition, any facility shall have secondary
liability for the payment of system jackpots won on a multilink in which the
licensee is or was a participant if and to the extent that the person authorized
to provide the multilink fails to make payment when due.
o. A person who is authorized to provide the multilink shall comply with the
following:
(1) A reserve shall be established and maintained by the provider of the
multilink in an amount of not less than the sum of the following amounts:
a. The present value of the aggregate remaining balances owed on all jackpots
previously won by patrons on the multilink.
b. The present value of the amount currently reflected on the jackpot meters
of the multilink.
c. The present value of one additional reset (start amount) of the multilink.
(2) The reserve shall continue to be maintained until all payments owed to
winners of the system jackpots have been made.
(3) For system jackpots disbursed in periodic payments, any qualified
investment shall be purchased within 90 days following notice of the win of the
system jackpot, and a copy of such qualified investment will be provided to the
commission office within 30 days of purchase. Any qualified investment shall
have a surrender value at maturity, excluding any interest paid before the
maturity date, equal to or greater than the value of the corresponding periodic
jackpot payment, and shall have a maturity date prior to the date the periodic
jackpot payment is required to be made.
(4) The person authorized to provide the multilink shall not be permitted to
sell, trade, or otherwise dispose of any qualified investments prior to maturity
unless approval to do so is first obtained from the commission.
(5) Upon becoming aware of an event of noncompliance with the terms of the
reserve requirement mandated by subparagraph (1) above, the person authorized to
provide the multilink must immediately notify the commission of such event. An
event of noncompliance includes a nonpayment of a jackpot periodic payment or a
circumstance which may cause the person authorized to provide the multilink to
be unable to fulfill, or otherwise impair, its ability to satisfy its jackpot
payment obligations.
(6) On a quarterly basis, the person authorized to provide the multilink must
deliver to the commission office a calculation of system reserves required under
subparagraph (1) above. The calculation shall come with a certification of
financial compliance signed by a duly authorized financial officer of the person
authorized to provide the multilink, on a form prescribed by the commission,
validating the calculation.
(7) The reserve required under subparagraph (1) must be examined by an
independent certified public accountant according to procedures approved by the
commission. Two copies of the report must be submitted to the commission office
within 90 days after the conclusion of the person authorized to provide the
multilink’s fiscal year.
p. For system jackpots disbursed in periodic payments, subsequent to the date
of the win, a winner may be offered the option to receive, in lieu of periodic
payments, a discounted single cash payment in the form of a “qualified prize
option,” as that term is defined in Section 451(h) of the Internal Revenue
Code. The person authorized to provide the multilink shall calculate the single
cash payment based on the discount rate. The discount rate selected by the
person authorized to provide the multilink shall be used to calculate the single
cash payment for all qualified prizes that occur subsequent to the date of the
selected discount rate, until a new discount rate becomes effective.
Item 10. Amend subrule 12.3(1) by adding the
following new paragraph “e”:
e. Surveillance control governing the administration of the network for the
purpose of utilizing and transmitting live or recorded views or images of a
video surveillance system for asset protection, loss prevention, investigation
of tort/liability claims, game protection, employee oversight, resolution of
patron disputes, corporate governance, management analysis, or other use
consistent with a licensee’s statutory responsibilities as approved by the
administrator. Capabilities within the surveillance system for video recording
of other areas of a facility and grounds may be included, provided commission
and DCI access is unrestricted
Item 11. Amend rule 491-12.15(99F) by adding the following new
subrule:
12.15(5) The licensee shall maintain a current log, accessible to
commission representatives, of all changes and updates made to the computer
system. All changes and updates shall be approved as required by 491--subrule
11.4(1).