99B.2 - LICENSING -- RECORDS REQUIRED -- BINGO ACCOUNTS -- INSPECTIONS -- PENALTIES.
99B.2 LICENSING -- RECORDS REQUIRED -- BINGO ACCOUNTS
-- INSPECTIONS -- PENALTIES.
1. a. The department of inspections and appeals shall issue
the licenses required by this chapter. A license shall not be
issued, except upon submission to the department of an application on
forms determined by the department, and the required license fee. A
license may be issued to an eligible applicant. However, a license
shall not be issued to an applicant who has been convicted of or pled
guilty to a violation of this chapter, or who has been convicted of
or pled guilty to a violation of chapter 123 that resulted, at any
time, in revocation of a license issued to the applicant under
chapter 123 or that resulted, within the twelve months preceding the
date of application for a license required by this chapter, in
suspension of a license issued under chapter 123. To be eligible for
a two-year license under section 99B.7, an organization shall have
been in existence at least five years prior to the date of issuance
of the license. However, an organization which has been in existence
for less than five years prior to the date of issuance of the license
may obtain a two-year license if either of the following conditions
apply:
(1) That prior to July 1, 1984, the organization was licensed
under this subsection.
(2) If the organization is a local chapter of a national
organization and the national organization is a tax-exempt
organization under one of the provisions enumerated in section 99B.7,
subsection 1, paragraph "m", then the local organization is
eligible for a two-year license if the national organization has been
in existence at least five years.
b. A license shall not be issued to an individual whose
previous license issued under this chapter or chapter 123 has been
revoked until the period of revocation or revocations has elapsed.
This prohibition applies even though the individual has created a
different legal entity than the one to which the previous license
that had been revoked was issued. Except as otherwise provided in
this chapter, a license is valid for a period of two years from the
date of issue. The license fee is not refundable, but shall be
returned to the applicant if an application is not approved.
2. A licensee other than one issued a license pursuant to section
99B.3, 99B.6, 99B.7A, or 99B.9 shall maintain proper books of account
and records showing in addition to any other information required by
the department, gross receipts and the amount of the gross receipts
taxes collected or accrued with respect to gambling activities, all
expenses, charges, fees and other deductions, and the cash amounts,
or the cost to the licensee of goods or other noncash valuables,
distributed to participants in the licensed activity. If the
licensee is a qualified organization, the amounts dedicated and the
date and name and address of each person to whom distributed also
shall be kept in the books and records. The books of account and
records shall be made available to the department or a law
enforcement agency for inspection at reasonable times, with or
without notice. A failure to permit inspection is a serious
misdemeanor.
3. A qualified organization conducting bingo occasions under a
two-year license and expecting to have annual gross receipts of more
than ten thousand dollars shall establish and maintain one regular
checking account designated the "bingo account" and may also
maintain one or more interest-bearing savings accounts designated as
"bingo savings account".
a. Funds derived from the conduct of bingo, less the amount
awarded as cash prizes, shall be deposited in the bingo account. No
other funds except limited funds of the organization deposited to pay
initial or unexpected emergency expenses shall be deposited in the
bingo account. Deposits shall be made no later than the next
business day following the day of the bingo occasion on which the
receipts were obtained. Accounts shall be maintained in a financial
institution in Iowa.
b. Funds from the bingo account shall be withdrawn by
preprinted, consecutively numbered checks or share drafts, signed by
a duly authorized representative of the licensee and made payable to
a person or organization. Checks shall be imprinted with the words
"Bingo Account" and shall contain the organization's gambling license
number on the face of the check. There shall also be noted on the
face of the check or share draft the nature of the payment made. A
check or slip shall not be made payable to "cash", "bearer", or a
fictitious payee. Checks, including voided checks and drafts, shall
be kept and accounted for.
c. Checks shall be drawn on the bingo account for only the
following purposes:
(1) The payment of necessary and reasonable bona fide expenses
permitted under section 99B.7, subsection 3, paragraph "b",
incurred and paid in connection with the conduct of bingo.
(2) The disbursement of net proceeds derived from the conduct of
bingo to charitable purposes as required by section 99B.7, subsection
3, paragraphs "b" and "c".
(3) The transfer of net proceeds derived from the conduct of
bingo to a bingo savings account pending disbursement to a charitable
purpose.
(4) To withdraw initial or emergency funds deposited under
subsection 3, paragraph "a".
(5) To pay prizes if the qualified organization decides to pay
prizes by check rather than cash.
d. The disbursement of net proceeds on deposit in a bingo
savings account to a charitable purpose shall be made by transferring
the intended disbursement back into the bingo account and then
withdrawing the amount by a check drawn on that account as prescribed
in this section.
e. Except as permitted by subsection 3, paragraph "a",
gross receipts derived from the conduct of bingo shall not be
commingled with other funds of the licensed organization. Except as
permitted by paragraph "c", subparagraphs (3) and (4), gross
receipts shall not be transferred to another account maintained by
the licensed organization.
4. A licensee required by subsection 2 to maintain records shall
submit an annual report to the department on forms furnished by the
department. The annual report shall be due thirty days following the
end of each fiscal year. The annual report shall contain a
compilation of the information required to be recorded by subsection
2, and shall include all of the transactions occurring during the
previous fiscal year for which the report is submitted. Failure to
submit the annual report is grounds for revocation of the license.
Willful failure to submit the annual report is a serious misdemeanor.
A person who intentionally files a false or fraudulent report or
application with the department commits a fraudulent practice.
5. An organization receiving funds reported as being dedicated by
a qualified organization shall maintain proper books of account and
records showing both the receipt and the use of the funds. These
records shall be made available to the department or a law
enforcement agency for inspection with or without notice at
reasonable times. A failure to permit inspection is a serious
misdemeanor. Section History: Early Form
[C75, 77, 79, 81, § 99B.2; 81 Acts, ch 44, § 4, 5] Section History: Recent Form
84 Acts, ch 1220, § 4; 86 Acts, ch 1201, § 2; 86 Acts, ch 1245, §
712; 87 Acts, ch 184, § 1; 88 Acts, ch 1274, § 30; 89 Acts, ch 231,
§16; 94 Acts, ch 1062, §2; 2008 Acts, ch 1032, §201; 2009 Acts, ch
181, §110--112
Referred to in § 99B.5, 99B.5A, 99B.7, 99B.7B, 99B.16