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PAG LIN 1 1 Section 1. Section 99E.9, subsection 2, Code Supplement 1 2 1995, is amended to read as follows: 1 3 2. Subject to the approval of the board, the commissioner 1 4 may enter into contracts for the operationand marketingof 1 5 the lottery, except that the board may by rule designate 1 6 classes of contracts other than major procurements which do 1 7 not require prior approval by the board. A major procurement 1 8 shall be as the result of competitive bidding with the 1 9 contract being awarded to the responsible vendor submitting 1 10 the lowest and best proposal. However, before a contract for 1 11 a major procurement is awarded, the division of criminal 1 12 investigation of the department of public safety shall conduct 1 13 a thorough background investigation of the vendor, any parent 1 14 or subsidiary corporation of the vendor, all shareholders of 1 15 five percent or more interest of the vendor or parent or 1 16 subsidiary corporation of the vendor, and all officers and 1 17 directors of the vendor or parent or subsidiary corporation of 1 18 the vendor to whom the contract is to be awarded. The vendor 1 19 shall submit to the division of criminal investigation 1 20 appropriate investigation authorizations to facilitate this 1 21 investigation. A contract for a major procurement awarded or 1 22 entered into by the commissioner with an individual or 1 23 business organization shall require that individual or 1 24 business organization to establish a permanent office in this 1 25 state. As used in this subsection, "major procurement" means 1 26 consulting agreements and the major procurement contract with 1 27 a business organization for the printing of tickets, or for 1 28 purchase or lease of equipment or services essential to the 1 29 operation of a lottery game. 1 30 Sec. 2. Section 99E.9, subsection 3, paragraph c, Code 1 31 Supplement 1995, is amended to read as follows: 1 32 c. The price of tickets or shares in the lottery,1 33including but not limited to authorization of sales of tickets1 34or shares at a discount for marketing purposes. 1 35 Sec. 3. Section 99E.9, subsection 3, paragraph m, Code 2 1 Supplement 1995, is amended to read as follows: 2 2 m. The form and type ofmarketing,informational,and 2 3 educational material to be permitted.Marketing material and2 4campaigns shall include the concept of investing in Iowa's2 5economic development and show the economic development2 6initiatives funded from lottery revenue.2 7 Sec. 4. Section 99E.9, subsection 3, paragraph n, 2 8 subparagraph (1), Code Supplement 1995, is amended to read as 2 9 follows: 2 10 (1) The payment of costs incurred in the operation and 2 11 administration of the lottery and the lottery division, 2 12 including the expenses of the lottery and the cost resulting 2 13 from contracts entered into for consulting or operational 2 14 services, or for marketing. 2 15 Sec. 5. Section 99E.9, subsection 4, Code Supplement 1995, 2 16 is amended to read as follows: 2 17 4. The board and the commissioner may enter into written 2 18 agreements or compacts with another state or states or one or 2 19 more political subdivisions of another state or states for the 2 20 operation, marketing, and promotionof a joint lottery or 2 21 joint lottery games. 2 22 Sec. 6. Section 99E.9, subsection 7, Code Supplement 1995, 2 23 is amended by striking the subsection and inserting in lieu 2 24 thereof the following: 2 25 7. a. The board and the commissioner shall not spend 2 26 public funds or revenue derived from the lottery operations to 2 27 engage in promotional advertising of the state lottery or a 2 28 multistate lottery. 2 29 b. A licensee, a vendor, or a combination of licensees and 2 30 vendors may engage in promotional advertising of the state 2 31 lottery or any multistate lottery in which the state 2 32 participates. 2 33 c. Promotional advertising by vendors pursuant to 2 34 paragraph "b" shall clearly indicate that the advertising is 2 35 paid for by the vendors. 3 1 d. Any advertising of the lottery which describes a 3 2 specific lottery game and a lottery share shall include the 3 3 following: 3 4 (1) Except for games under subparagraph (2), the prize 3 5 structure, the prize amounts, and the odds of a specific 3 6 lottery ticket or lottery share being selected as the winning 3 7 lottery ticket or lottery share for each prize amount. 3 8 (2) For games in which the amount of the winnings and the 3 9 odds of winning are determined by the number of participants 3 10 in the game, all of the following shall be included: 3 11 (a) An explanation that the amount of the winnings and the 3 12 odds of winning are determined by the number of participants 3 13 in the game. 3 14 (b) An explanation of the prize structure. 3 15 (c) Estimates of the amounts of prizes and the odds of a 3 16 particular lottery ticket or lottery share winning each prize. 3 17 The estimates of the prize amounts and the odds of a 3 18 particular lottery ticket or lottery share winning each prize 3 19 may be given as a range of values. 3 20 Sec. 7. Section 99E.10, subsection 1, unnumbered paragraph 3 21 2, Code 1995, is amended to read as follows: 3 22 Lottery expenses formarketing,educational,and 3 23 informational material shall not exceedfourone percent of 3 24 the lottery revenue. 3 25 Sec. 8. Section 99E.13, subsection 1, Code 1995, is 3 26 amended to read as follows: 3 27 1. A member of the board, the director, the commissioner, 3 28 or an employee of the lottery shall not directly or 3 29 indirectly, individually, as a member of a partnership or 3 30 other association, or as a shareholder, director, or officer 3 31 of a corporation have an interest in a business which 3 32 contracts for the operationand marketingof the lottery as 3 33 authorized by section 99E.9, subsection 2. 3 34 Sec. 9. Section 99E.16, subsection 1, Code 1995, is 3 35 amended to read as follows: 4 1 1. The commissioner shall license persons to sell lottery 4 2 tickets or shares to best serve public convenience. The 4 3 lottery division may sell tickets or shares to the public. 4 4 Except for the lottery division, a licensee shall not engage 4 5 in business exclusively to sell lottery tickets or shares. 4 6 However, the board may approve a special license to permit a 4 7 licensee or the lottery division itself to sell lottery 4 8 tickets or shares to the public at special events approved by 4 9 the board. Before issuing a license the commissioner shall 4 10 consider the financial responsibility and security of the 4 11 applicant, the applicant's business or activity, the 4 12 accessibility of the applicant's place of business or activity 4 13 to the public, the sufficiency of existing licensees to serve 4 14 the public convenience, and the volume of expected sales. A 4 15 licensee shall cooperate with the lottery by using point-of- 4 16 purchase materials, posters, and other educational,and 4 17 informational, and marketingmaterials when requested to do so 4 18 by the lottery. Lack of cooperation is sufficient cause for 4 19 revocation of a person's license. 4 20 EXPLANATION 4 21 This bill prohibits the lottery board and commissioner of 4 22 the lottery from using public funds or receipts from the state 4 23 lottery or multistate lottery to market or advertise the state 4 24 lottery or the multistate lottery. 4 25 The licensees and vendors of the state lottery may 4 26 advertise and promote the lottery games if the advertising and 4 27 lottery tickets or shares contain information about the 4 28 various prizes, odds of winning each prize, and prize 4 29 structure. For games where the winnings and the odds are 4 30 determined by the number of players, the advertisement and 4 31 tickets must include an explanation that the winnings and odds 4 32 are determined by the number of players, an explanation of the 4 33 prize structure, and an estimate of the odds and prize 4 34 amounts. 4 35 LSB 3954SS 76 5 1 tj/jj/8
Text: SF02272 Text: SF02274 Text: SF02200 - SF02299 Text: SF Index Bills and Amendments: General Index Bill History: General Index
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