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Senate
File
306
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Introduced
SENATE
FILE
306
BY
COMMITTEE
ON
STATE
GOVERNMENT
(SUCCESSOR
TO
SSB
1035)
A
BILL
FOR
An
Act
relating
to
the
Iowa
lottery.
1
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
2
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Section
1.
Section
99G.3,
Code
2025,
is
amended
by
adding
1
the
following
new
subsection:
2
NEW
SUBSECTION
.
9A.
“Lotto”
means
a
lottery
game
connected
3
to
a
central
computer
via
telecommunications
in
which
a
4
specified
group
of
numbers,
symbols,
or
characters
are
selected
5
out
of
a
predetermined
range.
6
Sec.
2.
Section
99G.3,
subsection
13,
Code
2025,
is
amended
7
by
striking
the
subsection.
8
Sec.
3.
Section
99G.3,
subsection
17,
Code
2025,
is
amended
9
to
read
as
follows:
10
17.
“Self-service
kiosk”
means
a
machine
or
other
similar
11
electronic
device
that
dispenses
only
on-line
lotto
tickets,
12
instant
tickets,
pull-tab
tickets,
or
other
printed
lottery
13
products,
and
that
does
not
provide
a
visual
or
audio
14
representation
of
lottery
game
play.
A
“self-service
kiosk
”
15
is
not
a
monitor
vending
machine
or
player-activated
gaming
16
machine
for
purposes
of
this
chapter
.
17
Sec.
4.
Section
99G.7,
subsection
1,
paragraph
e,
Code
2025,
18
is
amended
by
striking
the
paragraph.
19
Sec.
5.
Section
99G.7,
subsection
1,
paragraph
f,
Code
2025,
20
is
amended
to
read
as
follows:
21
f.
Report
quarterly
and
annually
to
the
commission
,
the
22
governor,
the
auditor
of
state,
and
the
general
assembly
a
full
23
and
complete
statement
of
lottery
revenues
and
expenses
for
the
24
preceding
quarter,
and
with
respect
to
the
annual
report,
for
25
the
preceding
year,
and
transfer
proceeds
to
the
general
fund
26
within
thirty
days
following
the
end
of
the
quarter
.
27
Sec.
6.
Section
99G.7,
subsection
4,
Code
2025,
is
amended
28
to
read
as
follows:
29
4.
The
administrator
director
or
the
administrator’s
30
director’s
designee
may
conduct
hearings
and
administer
31
oaths
to
persons
for
the
purpose
of
assuring
the
security
32
or
integrity
of
lottery
operations
or
to
determine
the
33
qualifications
of
or
compliance
by
vendors
and
retailers.
34
Sec.
7.
Section
99G.9,
subsection
2,
unnumbered
paragraph
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1,
Code
2025,
is
amended
to
read
as
follows:
1
Adopt
policies
and
procedures
and
promulgate
administrative
2
rules
pursuant
to
chapter
17A
relating
that
relate
exclusively
3
to
the
management
and
operation
of
the
Iowa
lottery
,
but
not
4
policies,
procedures,
or
administrative
rules
that
relate
to
5
the
operation
of
the
department
in
general
.
The
administrative
6
rules
promulgated
pursuant
to
this
subsection
may
include
but
7
shall
not
be
limited
to
the
following:
8
Sec.
8.
Section
99G.9,
subsection
2,
paragraph
h,
Code
2025,
9
is
amended
to
read
as
follows:
10
h.
The
means
of
conducting
drawings,
provided
that
drawings
11
shall
be
open
to
the
public
and
witnessed
by
an
independent
12
certified
public
accountant
.
Equipment
used
to
select
winning
13
tickets
or
shares
or
participants
for
prizes
shall
be
examined
14
by
an
independent
certified
public
accountant
prior
to
and
15
after
each
drawing.
16
Sec.
9.
Section
99G.10,
subsection
4,
Code
2025,
is
amended
17
to
read
as
follows:
18
4.
A
person
who
has
been
convicted
of
a
felony
or
bookmaking
19
or
other
form
of
illegal
gambling
or
shall
not
be
employed
by
20
the
department
under
this
chapter.
The
director
shall
have
21
discretion
to
determine
the
relevance
of
a
crime
involving
22
moral
turpitude
shall
not
be
employed
by
other
crimes
when
23
making
decisions
regarding
employment
with
the
department
under
24
this
chapter
.
25
Sec.
10.
Section
99G.31,
subsection
3,
paragraphs
g
and
h,
26
Code
2025,
are
amended
by
striking
the
paragraphs
and
inserting
27
in
lieu
thereof
the
following:
28
g.
A
ticket
or
share
issued
by
the
division
shall
not
29
be
purchased
by
and
no
prize
shall
be
paid
to
any
of
the
30
following:
31
(1)
A
member
of
the
commission.
32
(2)
An
officer
or
employee
of
the
department.
33
(3)
An
officer
or
employee
of
the
state
providing
services
34
to
the
department
to
administer
this
chapter
if
such
officer
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or
employee
has
access
to
confidential
information
which
may
1
compromise
the
integrity
of
the
lottery.
2
(4)
A
spouse,
child,
sibling,
or
parent
residing
as
a
member
3
of
the
same
household
in
the
principal
place
of
residence
of
4
any
person
described
in
subparagraphs
(1)
through
(3).
For
5
purposes
of
this
subparagraph,
a
spouse,
child,
sibling,
or
6
parent
of
a
person
described
in
subparagraphs
(1)
through
(3)
7
is
considered
to
be
residing
as
a
member
of
the
same
household
8
if
the
spouse,
child,
sibling,
or
parent
lived
in
the
principal
9
place
of
residence
for
one
hundred
eighty-three
days
or
more
in
10
the
immediately
preceding
three
hundred
sixty-five
days.
11
h.
A
ticket
or
share
issued
by
the
division
shall
not
12
be
purchased
by
and
no
prize
shall
be
paid
to
any
of
the
13
following:
14
(1)
An
officer,
employee,
agent,
or
subcontractor
of
any
15
vendor
if
such
officer,
employee,
agent,
or
subcontractor
has
16
access
to
confidential
information
which
may
compromise
the
17
integrity
of
the
lottery.
18
(2)
A
spouse,
child,
sibling,
or
parent
residing
as
a
member
19
of
the
same
household
in
the
principal
place
of
residence
of
20
any
person
described
in
subparagraph
(1).
For
purposes
of
this
21
subparagraph,
a
spouse,
child,
sibling,
or
parent
of
a
person
22
described
in
subparagraph
(1)
is
considered
to
be
residing
as
23
a
member
of
the
same
household
if
the
spouse,
child,
sibling,
24
or
parent
lived
in
the
principal
place
of
residence
for
one
25
hundred
eighty-three
days
or
more
in
the
immediately
preceding
26
three
hundred
sixty-five
days.
27
Sec.
11.
Section
99G.34,
Code
2025,
is
amended
by
adding
the
28
following
new
subsection:
29
NEW
SUBSECTION
.
9.
Ticket
order
history;
ticket
inventory;
30
or
any
records
that
if
disclosed
could
impair
or
adversely
31
impact
the
security,
integrity,
or
fairness
of
a
lottery
game
32
or
the
security
of
lottery
retailers.
33
Sec.
12.
Section
99G.35,
subsection
1,
unnumbered
paragraph
34
1,
Code
2025,
is
amended
to
read
as
follows:
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The
department’s
lottery
security
staff
under
this
chapter
1
shall
be
investigators
that
support
the
division
may
include
2
staff
qualified
by
training
and
experience
in
law
enforcement
3
to
perform
their
respective
duties
in
support
of
the
activities
4
of
the
security
office
to
the
extent
necessary
to
perform
5
the
duties
.
Lottery
security
staff
Staff
that
have
training
6
and
experience
in
law
enforcement
shall
not
have
sworn
peace
7
officer
status.
The
lottery
security
office
department
8
shall
perform
security
duties
including
all
of
the
following
9
activities
in
support
of
the
mission
of
the
department
under
10
this
chapter
:
11
Sec.
13.
Section
99G.35,
subsection
1,
paragraphs
c
and
g,
12
Code
2025,
are
amended
to
read
as
follows:
13
c.
Report
any
suspected
violations
of
this
chapter
to
the
14
one
or
more
of
the
following,
as
determined
by
the
department:
15
(1)
The
appropriate
county
attorney
or
the
.
16
(2)
The
attorney
general
and
to
any
.
17
(3)
Any
law
enforcement
agencies
agency
having
jurisdiction
18
over
the
violation.
19
g.
Provide
Ensure
physical
security
at
the
central
20
operations
facilities
used
by
the
department
for
purposes
of
21
this
chapter
.
22
Sec.
14.
Section
99G.39,
subsection
2,
Code
2025,
is
amended
23
to
read
as
follows:
24
2.
The
director
of
the
department
of
management
shall
25
not
include
lottery
revenues
in
the
director’s
director
of
26
the
department
of
management’s
fiscal
year
revenue
estimates
27
for
the
general
fund
of
the
state.
This
subsection
does
not
28
apply
for
purposes
of
revenue
estimates
of
lottery
revenues
as
29
described
in
section
8.22A
.
30
Sec.
15.
Section
99G.40,
subsection
2,
Code
2025,
is
amended
31
to
read
as
follows:
32
2.
A
lottery
fund
is
created
in
the
office
of
the
treasurer
33
of
state
and
shall
exist
as
the
recipient
fund
for
department
34
receipts
under
this
chapter
.
The
fund
consists
of
all
revenues
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received
from
the
sale
of
lottery
tickets
or
shares
and
all
1
other
moneys
lawfully
credited
or
transferred
to
the
fund.
2
The
director
shall
certify
before
the
last
day
of
the
month
3
following
each
quarter
that
portion
of
the
lottery
fund
4
resulting
from
the
previous
quarter’s
sales
to
be
transferred
5
to
the
general
fund
of
the
state.
The
director
shall
certify
6
quarterly
that
portion
of
the
fund
that
has
been
transferred
7
to
the
general
fund
of
the
state
under
this
chapter
and
shall
8
cause
that
portion
to
be
transferred
to
the
general
fund
of
the
9
state
within
forty-five
days
following
the
end
of
the
quarter
.
10
However,
upon
the
request
of
the
director
and
subject
to
the
11
approval
by
the
treasurer
of
state,
an
amount
sufficient
to
12
cover
the
foreseeable
administrative
expenses
of
the
lottery
13
for
a
period
of
twenty-one
days
may
be
retained
from
the
14
lottery
fund.
Prior
to
the
quarterly
transfer
to
the
general
15
fund
of
the
state,
the
director
may
direct
that
lottery
revenue
16
shall
be
deposited
in
the
lottery
fund
and
in
interest-bearing
17
accounts
designated
by
the
treasurer
of
state.
Interest
or
18
earnings
paid
on
the
deposits
or
investments
is
considered
19
lottery
revenue
and
shall
be
transferred
to
the
general
fund
of
20
the
state
in
the
same
manner
as
other
lottery
revenue.
21
Sec.
16.
Section
99G.40,
subsection
3,
Code
2025,
is
amended
22
by
striking
the
subsection.
23
EXPLANATION
24
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
25
the
explanation’s
substance
by
the
members
of
the
general
assembly.
26
This
bill
relates
to
the
Iowa
lottery.
27
The
bill
removes
the
word
“on-line”
from
the
term
“on-line
28
lotto”,
strikes
reporting
requirements
duplicative
of
29
those
under
Code
section
99G.40,
and
moves
duties
of
the
30
administrator
of
the
Iowa
lottery
regarding
conducting
hearings
31
and
administering
oaths
to
assure
the
security
or
integrity
of
32
the
lottery
to
the
director
of
revenue
(director).
The
bill
33
specifies
that
the
Iowa
lottery
commission
is
prohibited
from
34
adopting
policies,
procedures,
or
rules
that
relate
to
the
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department
of
revenue
(IDR)
in
general,
and
removes
from
the
1
suggested
policies,
procedures,
and
rules
that
lottery
drawings
2
be
witnessed
by
an
independent
certified
public
accountant.
3
Under
current
law,
IDR
is
prohibited
from
hiring
4
persons
convicted
of
a
felony,
bookmaking,
other
form
of
5
illegal
gambling,
or
a
crime
involving
moral
turpitude
for
6
lottery-related
employment.
The
bill
removes
crimes
involving
7
moral
turpitude
from
the
prohibition
and
gives
the
director
8
discretion
to
determine
the
relevance
of
other
crimes
on
9
employment
decisions.
10
The
bill
updates
and
expands
the
list
of
persons
prohibited
11
from
purchasing
a
lottery
ticket
or
being
awarded
a
prize,
12
including
by
adding
a
state
officer
or
employee
providing
13
services
to
IDR
to
administer
lottery
provisions
if
such
person
14
has
access
to
confidential
information
which
may
compromise
the
15
integrity
of
the
lottery.
16
The
bill
adds
ticket
order
history,
ticket
inventory,
or
any
17
other
records
that
could
affect
the
security,
integrity,
or
18
fairness
of
a
lottery
game
or
the
security
of
lottery
retailers
19
to
the
list
of
exceptions
to
an
open
records
request
governed
20
by
Code
chapter
22.
21
The
bill
changes
lottery
security
staff
requirements
to
22
include
investigators
that
support
the
division
and
updates
the
23
activities
performed
by
investigators
supporting
the
lottery
24
division.
25
Under
current
law,
the
director
of
the
department
of
26
management
is
prohibited
from
including
lottery
revenues
in
27
fiscal
year
revenue
estimates.
The
bill
specifies
that
this
is
28
for
general
fund
revenue
estimates,
and
that
the
prohibition
29
does
not
apply
for
purposes
of
Code
section
8.22A
(revenue
30
estimating
conference).
31
Under
current
law,
the
director
is
required
to
certify
32
quarterly
that
portion
of
the
lottery
fund
that
has
been
33
transferred
to
the
general
fund
and
to
transfer
that
portion
34
to
the
general
fund.
The
administrator
of
the
Iowa
lottery
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is
required
to
transfer
proceeds
from
the
lottery
fund
to
the
1
general
fund
within
30
days
following
the
end
of
the
quarter.
2
The
bill
eliminates
the
duplicative
transfer
requirement
by
3
removing
the
duty
from
the
administrator
of
the
Iowa
lottery,
4
and
increases
the
transfer
deadline
to
45
days
for
the
5
director.
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