Here is the latest Iowa news from The Associated Press at 2:40 a.m. CDT

ALTOONA, Iowa (AP) — Federal officials say they are revoking a central Iowa casino’s nonprofit status. The Internal Revenue Service announced Thursday that Prairie Meadows, in Altoona, should lose its tax-exempt status, following an 18-month audit. The casino plans to appeal the decision. Prairie Meadows has faced questions about its nonprofit status partly due to the amount of money it spends on salaries for executives compared to money spent on charitable activities.

WEST DES MOINES, Iowa (AP) — West Des Moines police have charged a bus driver with having a gun on school grounds. The incident began about noon Wednesday when police say a Des Moines police captain was driving an unmarked car and a private bus started tailgating him on Interstate 235. Police say the bus driver honked his horn and flashed his lights before passing the officer, who followed the bus to Valley High School and approached the driver, 64-year-old Paul Smiley-Oyen. He was holding a handgun and was arrested.

DES MOINES, Iowa (AP) — Opponents of a proposed oil pipeline to cross North Dakota, South Dakota, Iowa and Illinois have increased pressure on Iowa regulators to resist allowing a Texas-based petroleum company to start construction before all federal permits are approved. Dakota Access, which hopes to build a 1,150-mile pipeline, tells the Iowa Utilities Board it must begin laying pipe where landowners have given permission by Tuesday if it hopes to finish before winter.

DES MOINES, Iowa (AP) — Gov. Terry Branstad has signed a bill into law that is expected to reduce prison time for inmates convicted of certain drug offenses. Branstad signed the bill Thursday. It will allow certain non-violent drug offenders in Iowa to be eligible for parole after they serve at least half of their mandatory minimum sentence. The nonpartisan Legislative Services Agency says the law is expected to reduce the disproportionate number of minorities in Iowa’s criminal justice system.