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STATE OF IOWA
KIM REYNOl.DS
GOVERNOR
March 28, 2025
The Honorable Paul Pate
Secretary of State of Iowa
State Capitol
Des Moines, Iowa 50319
Dear Mr. Secretary,
I hereby transmit:
House File 260, an Act relating to the Iowa lottery.
The above House File is hereby approved on this date.
Sincerely,
Kinrfii^nolds( \Governor of Iowa
cc: Secretary of the Senate
Clerk of the House
STATE CAPITOL DES MOINES, IOWA 50319 515.281.5211 FAX 515.725.3527 WWW.GOVERNOR.IOWA.GOV
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House File 260
AN ACT
RELATING TO THE IOWA LOTTERY.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA;
Section 1, Section 99G.3, Code 2025, is amended by adding
the following new subsection:
NEW SUBSECTION. 9A. '^Lotto" means a lottery game connected
to a central computer via telecommunications in which a
specified group of numbers, symbols, or characters are selected
out of a predetermined range.
Sec. 2. Section 99G.3, subsection 13, Code 2025, is amended
by striking the subsection.
Sec. 3. Section 99G.3, subsection 17, Code 2025, is amended
to read as follows:
17. ^Self-service kiosk'' means a machine or other similar
electronic device that dispenses only on-line lotto tickets,
instant tickets, pull-tab tickets, or other printed lottery
products, and that does not provide a visual or audio
representation of lottery game play. A ^self-service kiosk"
is not a monitor vending machine or player-activated gaming
machine for purposes of this chapter.
Sec. 4. Section 99G.7, subsection 1, paragraph e. Code 2025,
is amended by striking the paragraph.
Sec. 5. Section 99G.7, subsection 1, paragraph f. Code 2025,
is amended to read as follows:
f. Report quarterly and annually to the commissionT—fclie
governor,—the auditor of state, and the general assembly a full
House File 260, p. 2
and complGto otatomont of lottery rGvonuGO and Gxponacs for the
procoding quarter» and with rcopGCt to the annual report# for
the preceding—year —a-nd—transfer—proceeds—fe©—the—general—fund
within—thirty—days—following—the—end—&€—the—quarter .
Sec, 6. Section 99G.7, subsection 4, Code 2025, is amended
to read as follows;
4, The administrator director or the administrator^s
director^s designee may conduct hearings and administer
oaths to persons for the purpose of assuring the security
or integrity of lottery operations or to determine the
qualifications of or compliance by vendors and retailers.
Sec. 7. Section 99G.9, subsection 2, unnumbered paragraph
1, Code 2025, is amended to read as follows:
Adopt policies and procedures and promulgate administrative
rules pursuant to chapter 17A relating that relate exclusively
to the management and operation of the Iowa lottery, but not
policies, procedures, or administrative rules that relate to
the operation of the department in general. The administrative
rules promulgated pursuant to this subsection may include but
shall not be limited to the following:
Sec. 8. Section 99G.9, subsection 2, paragraph h. Code 2025,
is amended to read as follows:
h. The means of conducting drawings, provided that drawings
shall be open to the public and witnessed by an independent
certified public accountant. Equipment used to select winning
tickets or shares or participants for prizes shall be examined
by an independent certified public accountant prior to and
after each drawing.
Sec. 9. Section 99G.10, subsection 4, Code 2025, is amended
to read as follows:
4. A person who has been convicted of a felony or bookmaking
or other form of illegal gambling ©r- shall not be employed by
the department under this chapter. The director shall have
discretion to determine the relevance of a crime involving
moral turpitude shall not be employed by other crimes when
making decisions regarding employment with the department under
this chapter.
Sec. 10. Section 99G.31, subsection 3, paragraphs g and h.
Code 2025, are amended by striking the paragraphs and inserting
House File 260, p. 3
in lieu thereof the following;
g, A ticket or share issued by the division shall not
be purchased by and no prize shall be paid to any of the
following:
(1) A member of the commission.
(2) An officer or employee of the department.
(3) An officer or employee of the state providing services
to the department to administer this chapter if such officer
or employee has access to confidential information which may
compromise the integrity of the lottery.
(4) A spouse, child, sibling, or parent residing as a member
of the same household in the principal place of residence of
any person described in subparagraphs (1) through (3). For
purposes of this subparagraph, a spouse, child, sibling, or
parent of a person described in subparagraphs (1) through (3)
is considered to be residing as a member of the same household
if the spouse, child, sibling, or parent lived in the principal
place of residence for one hundred eighty-three days or more in
the immediately preceding three hundred sixty-five days.
h, A ticket or share issued by the division shall not
be purchased by and no prize shall be paid to any of the
following:
(1) An officer, employee, agent, or subcontractor of any
vendor if such officer, employee, agent, or subcontractor has
access to confidential information which may compromise the
integrity of the lottery.
(2) A spouse, child, sibling, or parent residing as a member
of the same household in the principal place of residence of
any person described in subparagraph (1). For purposes of this
subparagraph, a spouse, child, sibling, or parent of a person
described in subparagraph (1) is considered to be residing as
a member of the same household if the spouse, child, sibling,
or parent lived in the principal place of residence for one
hundred eighty-three days or more in the immediately preceding
three hundred sixty-five days.
Sec. 11. Section 996.34, Code 2025, is amended by adding the
following new subsection:
NEW SUBSECTION. 9. Ticket order history; ticket inventory;
or any records that if disclosed could impair or adversely
House File 260, p. 4
impact the security, integrity, or fairness of a lottery game
or the security of lottery retailers.
Sec. 12. Section 99G.35, subsection 1, unnumbered paragraph
1, Code 2025, is amended to read as follows:
The department's lottery security staff under this chapter
shall be investigators that support the division may include
staff qualified by training and experience in law enforcement
to perform their respective duties in support of the activities
of the security office to the extent necessary to perform
the duties. Lottery security staff Staff that have training
and experience in law enforcement shall not have sworn peace
officer status. The lottery security office department
shall perform security duties including all of the following
activities in support of the mission of the department under
this chapter:
Sec. 13. Section 99G.35, subsection 1, paragraphs c and g.
Code 2025, are amended to read as follows:
c» Report any suspected violations of this chapter to
one or more of the following, as determined by the department:
(1) The appropriate county attorney or the^^
(2) The attorney general and to any^
(3) Any law enforcement agencies agency having jurisdiction
over the violation.
g. Provide Ensure physical security at the central
operations facilities used by the department for purposes of
this chapter.
Sec. 14. Section 99G.39, subsection 2, Code 2025, is amended
to read as follows:
2. The director of the department of management shall
not include lottery revenues in the director's director of
the department of management's fiscal year revenue estimates
for the general fund of the state. This subsection does not
apply for purposes of revenue estimates of lottery revenues as
described in section 8.22A.
Sec. 15. Section 99G.40, subsection 2, Code 2025, is amended
to read as follows:
2. A lottery fund is created in the office of the treasurer
of state and shall exist as the recipient fund for department
receipts under this chapter. The fund consists of all revenues
House File 260, p. 5
received from the sale of lottery tickets or shares and all
other moneys lawfully credited or transferred to the fund.
The director shall certify before the last day of the month
following each quarter that portion of the lottery fund
resulting from the previous quarterns sales to be transferred
to the general fund of the state. The director shall certify
quarterly that portion of the fund that has been transferred
to the general fund of the state under this chapter and shall
cause that portion to be transferred to the general fund of the
state within forty-five days following the end of the quarter.
However, upon the request of the director and subject to the
approval by the treasurer of state, an amount sufficient to
cover the foreseeable administrative expenses of the lottery
for a period of twenty-one days may be retained from the
lottery fund. Prior to the quarterly transfer to the general
fund of the state, the director may direct that lottery revenue
shall be deposited in the lottery fund and in interest-bearing
accounts designated by the treasurer of state. Interest or
earnings paid on the deposits or investments is considered
lottery revenue and shall be transferred to the general fund of
the state in the same manner as other lottery revenue.
Sec. 16. Section 99G.40, subsection 3, Code 2025, is amended
by striking the subsection.
PAT GRASSL]
Speaker of the House
AMY SINg^iAIR
President of the Senate
I hereby certify that this bill originated in the House and
is known as House File 260, Ninety-first General Assembly.
Approved 2025
MEGHAN NELSON
Chief aierk #^the House
KIM/REINOLDS
Governo