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LEGISLATURE
OF
THE
STATE
OF
IDAHO
Sixty-eighth
Legislature
Second
Regular
Session
-
2026
IN
THE
HOUSE
OF
REPRESENTATIVES
HOUSE
BILL
NO.
504
BY
STATE
AFFAIRS
COMMITTEE
AN
ACT
1
RELATING
TO
THE
IDAHO
STATE
LOTTERY;
AMENDING
SECTION
67
-
7404,
IDAHO
CODE,
2
TO
DEFINE
TERMS
AND
TO
MAKE
TECHNICAL
CORRECTIONS;
AMENDING
CHAPTER
74,
3
TITLE
67,
IDAHO
CODE,
BY
THE
ADDITION
OF
A
NEW
SECTION
67
-
7449,
IDAHO
4
CODE,
TO
ESTABLISH
PROVISIONS
REGARDING
THE
PROHIBITION
OF
BULK
TICKET
5
PURCHASES
OF
IDAHO
LOTTERY
GAMES;
AMENDING
SECTION
67
-
7449,
IDAHO
CODE,
6
TO
REDESIGNATE
THE
SECTION;
AMENDING
SECTION
67
-
7450,
IDAHO
CODE,
TO
7
REVISE
A
PROVISION
REGARDING
AUDIT
OF
FUNDS
AND
REPORTS
AND
TO
REDESIG
-
8
NATE
THE
SECTION;
AMENDING
SECTION
67
-
7451,
IDAHO
CODE,
TO
REDESIGNATE
9
THE
SECTION;
AMENDING
SECTION
67
-
7452,
IDAHO
CODE,
TO
REDESIGNATE
THE
10
SECTION;
AND
DECLARING
AN
EMERGENCY
AND
PROVIDING
AN
EFFECTIVE
DATE.
1
1
Be
It
Enacted
by
the
Legislature
of
the
State
of
Idaho:
12
SECTION
1.
That
Section
67
-
7404,
Idaho
Code,
be,
and
the
same
is
hereby
13
amended
to
read
as
follows:
14
67
-
7404.
DEFINITIONS.
As
used
in
this
chapter:
15
(1)
"Acting
in
concert"
means
and
includes
persons
coordinating
their
16
purchases,
sharing
funds
for
purchases,
or
acting
on
behalf
of
a
common
in
-
17
terest
or
strategy
to
exceed
the
bulk
purchase
transaction
limit.
18
(1)
(2)
"Administrative
costs"
means
personnel
costs,
capital
outlay,
19
and
reasonable
expenses
incurred
by
other
state
agencies
to
effectuate
the
20
purposes
of
this
chapter.
21
(3)
"Bulk
purchase
transaction"
means
a
purchase
by
any
person
or
per
-
22
sons
acting
in
concert
of
lottery
tickets
exceeding
five
thousand
dollars
23
($5,000)
within
a
twenty
-
four
(24)
hour
period,
including:
24
(a)
Purchases
occurring
in
a
single
transaction
or
multiple
transac
-
25
tions;
and
26
(b)
Purchases
occurring
at
a
single
location
or
multiple
locations.
27
(2)
(4)
"Commission"
means
the
Idaho
state
lottery
commission.
28
(3)
(5)
"Director"
means
the
director
of
the
lottery.
29
(4)
(6)
"Expenses"
means
all
costs
of
doing
business
,
including
,
but
30
not
limited
to,
prizes,
commissions
,
and
other
compensation
paid
to
retail
-
31
ers,
advertising
and
marketing
costs,
personnel
costs,
capital
outlay,
rea
-
32
sonable
expenses
incurred
by
other
state
agencies
to
effectuate
the
purposes
33
of
this
chapter,
depreciation
of
property
and
equipment,
and
other
operating
34
costs,
all
of
which
are
to
be
recorded
on
the
accrual
basis
of
accounting
in
35
accordance
with
generally
accepted
accounting
principles.
36
(5)
(7)
"Lottery"
or
"state
lottery"
means
the
state
lottery
estab
-
37
lished
and
operated
pursuant
to
this
chapter.
38
(6)
(8)
"Lottery
contractor"
means
a
person
with
whom
the
lottery
has
39
contracted
for
the
purposes
of
providing
goods
and
services
for
the
state
40
lottery.
41
2
(7)
(9)
"Lottery
game
retailer"
or
"retailer"
means
a
person
with
whom
1
the
lottery
has
contracted
for
the
purpose
of
selling
tickets
or
shares
in
2
lottery
games
to
the
public.
3
(8)
(10)
"Lottery
revenue"
means
revenue
derived
from
the
sale
of
lot
-
4
tery
tickets
and
shares.
Such
revenues
shall
be
recorded
on
the
accrual
ba
-
5
sis
of
accounting
in
accordance
with
generally
accepted
accounting
princi
-
6
ples.
7
(9)
(11)
"Lottery
vendor"
or
"vendor"
means
any
person
who
submits
a
8
bid,
proposal
or
offer
as
part
of
a
major
procurement
for
goods
or
services
as
9
defined
in
subsection
(11)
of
this
section
.
10
(10)
(12)
"Low,
medium
and
high
tier
claims"
means
the
dollar
amount
of
1
1
prizes
awarded
in
accordance
with
rules
of
the
state
lottery.
12
(11)
(13)
"Major
procurement"
means
any
contract
with
a
vendor
supply
-
13
ing
lottery
tickets
or
shares,
data
processing
systems
utilized
to
track,
14
sell,
distribute
or
validate
lottery
tickets
or
shares,
any
goods
or
ser
-
15
vices
involving
the
determination
or
generation
of
winners
in
any
lottery
16
game
,
or
any
auditing
services.
A
major
procurement
shall
be
undertaken
17
at
all
times
in
conformance
with
the
constitution
and
laws
of
the
state
of
18
Idaho
,
and
lottery
.
Lottery
vendors
in
submitting
a
bid,
proposal
or
of
-
19
fer
as
part
of
a
major
procurement
for
goods
or
services
as
defined
in
this
20
subsection
shall
be
undertaken
at
all
times
in
conformance
with
the
consti
-
21
tution
and
laws
of
the
state
of
Idaho.
22
(12)
(14)
"Net
income"
means
lottery
revenue
and
nonlottery
revenue,
23
less
expenses
,
as
defined
in
this
chapter
.
24
(13)
(15)
"Person"
shall
be
construed
to
mean
and
include
means
and
25
includes
an
individual,
association,
corporation,
club,
trust,
estate,
26
society,
company,
joint
stock
company,
receiver,
trustee,
assignee,
ref
-
27
eree
,
or
any
other
person
acting
in
a
fiduciary
or
representative
capacity,
28
whether
appointed
by
a
court
or
otherwise,
and
any
combination
of
individ
-
29
uals.
"Person"
shall
also
be
construed
to
The
term
also
mean
s
and
include
s
30
departments,
commissions,
agencies
,
and
instrumentalities
of
the
state
of
31
Idaho,
including
counties
and
municipalities
and
agencies
or
instrumentali
-
32
ties
thereof.
33
(14)
(16)
"Redemption
value"
means
the
sum
total
of
all
winnings
upon
34
the
ticket
presented
for
payment.
35
(15)
(17)
"Share"
means
any
intangible
evidence
of
participation
in
a
36
game
conducted
by
the
state
lottery.
37
(16)
(18)
"Ticket"
means
any
tangible
evidence
issued
by
the
lottery
to
38
provide
participation
in
a
game
conducted
by
the
state
lottery.
39
(17)
(19)
"Value"
means
any
ticket
shall
be
taken
at
face
value.
40
SECTION
2.
That
Chapter
74,
Title
67,
Idaho
Code,
be,
and
the
same
is
41
hereby
amended
by
the
addition
thereto
of
a
NEW
SECTION
,
to
be
known
and
des
-
42
ignated
as
Section
67
-
7449,
Idaho
Code,
and
to
read
as
follows:
43
67
-
7449.
BULK
PURCHASE
TRANSACTIONS.
(1)
Bulk
purchase
transactions
44
shall
be
prohibited
in
the
state
of
Idaho.
45
(2)
The
Idaho
state
lottery
may
deny
payment
of
any
prize
for
a
lottery
46
ticket
if
it
determines
the
lottery
ticket
was
purchased
as
part
of
a
bulk
47
purchase
transaction.
48
3
(3)
The
lottery
reserves
the
right
to
investigate
any
ticket
purchase
1
patterns
it
deems
suspicious
or
indicative
of
a
bulk
purchase
transaction.
2
The
lottery's
determination
as
to
whether
a
violation
of
this
section
has
oc
-
3
curred
is
final
and
binding.
4
(4)
In
conducting
such
investigations,
the
lottery
may
consider
the
5
following
sources:
video
surveillance,
purchase
records,
transaction
data,
6
witness
statements,
and
any
other
evidence
it
deems
relevant
to
making
a
7
determination.
8
(5)
Any
licensed
lottery
game
retailer,
or
any
agent
or
employee
9
thereof,
who
is
determined
to
have
knowingly
facilitated
a
bulk
purchase
10
transaction
shall
be
subject
to
penalties,
including
but
not
limited
to
1
1
suspension
or
termination
of
the
retailer's
contract
and
corresponding
cer
-
12
tificate
of
authority
and
any
other
sanctions
authorized
by
rule
or
statute.
13
SECTION
3.
That
Section
67
-
7449,
Idaho
Code,
be,
and
the
same
is
hereby
14
amended
to
read
as
follows:
15
67
-
7449
67
-
7450
.
CAP
ON
ADMINISTRATIVE
COSTS.
During
the
first
year
16
of
operation,
administrative
costs
shall
not
exceed
twenty
percent
(20%)
of
17
lottery
revenue.
Thereafter,
administrative
costs
shall
not
exceed
fifteen
18
percent
(15%)
of
lottery
revenue
during
any
fiscal
year.
Advertising
and
19
promotional
costs
shall
not
exceed
three
and
one
-
half
percent
(3
1/2%)
of
20
lottery
revenue
during
any
fiscal
year.
21
SECTION
4.
That
Section
67
-
7450,
Idaho
Code,
be,
and
the
same
is
hereby
22
amended
to
read
as
follows:
23
67
-
7450
67
-
7451
.
AUDIT
OF
FUNDS
-
-
REPORTS.
(1)
The
right
is
reserved
24
to
the
state
of
Idaho
to
audit
funds
of
the
commission
at
any
time.
25
(2)
On
or
before
January
15
of
each
year,
the
director
shall
file
a
26
report
with
the
senate
state
affairs
committee,
the
house
state
affairs
27
committee,
the
legislative
services
office,
the
state
controller,
and
the
28
division
of
financial
management,
a
report
showing
the
annual
income
and
29
expenses
by
standard
classification
of
the
commission
during
the
preceding
30
fiscal
year.
The
report
shall
also
include
an
estimate
of
income
to
the
com
-
31
mission
for
the
current
and
next
fiscal
years
and
a
projection
of
anticipated
32
expenses
by
category
for
the
current
and
next
fiscal
years.
From
and
after
33
January
15,
1990,
the
report
shall
also
include
a
reconciliation
between
the
34
estimated
income
and
expenses
projected
and
the
actual
income
and
expenses
35
of
the
preceding
fiscal
year.
:
36
(a)
The
senate
state
affairs
committee;
37
(b)
The
house
state
affairs
committee;
38
(c)
The
legislative
services
office;
39
(d)
The
state
controller;
40
(e)
The
division
of
financial
management;
and
41
(f)
The
joint
finance
-
appropriations
committee.
Notwithstanding
any
42
other
provision
of
this
chapter,
the
joint
finance
-
appropriations
com
-
43
mittee
may,
by
appropriation,
measure,
limit,
or
modify
proposed
expen
-
44
ditures
of
the
commission.
45
(3)
In
addition
to
the
reports
required
in
subsection
(2)
of
this
sec
-
46
tion,
the
director
shall
also
file
the
same
report
with
the
joint
finance
-
ap
-
47
4
propriations
committee.
Notwithstanding
any
other
provision
of
this
chap
-
1
ter,
the
joint
finance
-
appropriations
committee
may,
by
appropriation
mea
-
2
sure,
limit
or
modify
proposed
expenditures
of
the
commission.
3
(3)
The
report
shall:
4
(a)
Show
the
annual
income
and
expenses
by
standard
classification
of
5
the
commission
during
the
preceding
fiscal
year;
6
(b)
Include
an
estimate
of
income
to
the
commission
for
the
current
and
7
next
fiscal
years
and
a
projection
of
anticipated
expenses
by
category
8
for
the
current
and
next
fiscal
years;
and
9
(c)
Include
a
reconciliation
between
the
estimated
income
and
expenses
10
projected
and
the
actual
income
and
expenses
of
the
preceding
fiscal
1
1
year.
12
SECTION
5.
That
Section
67
-
7451,
Idaho
Code,
be,
and
the
same
is
hereby
13
amended
to
read
as
follows:
14
67
-
7451
67
-
7452
.
LOTTERY
EXEMPT
FROM
STATE
PROCUREMENT
ACT.
Notwith
-
15
standing
any
other
provision
of
law
to
the
contrary,
the
state
lottery
shall
16
be
exempt
from
the
state
procurement
act
provided
in
chapter
92,
title
67,
17
Idaho
Code.
18
SECTION
6.
That
Section
67
-
7452,
Idaho
Code,
be,
and
the
same
is
hereby
19
amended
to
read
as
follows:
20
67
-
7452
67
-
7453
.
SEVERABILITY.
If
any
of
the
provisions
of
this
chap
-
21
ter
or
the
application
thereof
to
any
person
or
circumstance
is
held
invalid,
22
such
invalidity
shall
not
affect
other
provisions
or
applications
of
the
23
chapter
which
can
be
given
effect
without
the
invalid
provision
or
applica
-
24
tion,
and
to
this
end
the
provisions
of
this
chapter
are
severable.
25
SECTION
7.
An
emergency
existing
therefor,
which
emergency
is
hereby
26
declared
to
exist,
this
act
shall
be
in
full
force
and
effect
on
and
after
27
July
1,
2026.
28