Senate Study Bill 3091 - Introduced SENATE/HOUSE FILE _____ BY (PROPOSED CITIZENS’ AIDE/OMBUDSMAN BILL) A BILL FOR An Act concerning the Iowa lottery authority relating to the 1 awarding of prizes and providing a criminal penalty. 2 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 3 TLSB 5437DP (12) 83 ec/nh

S.F. _____ H.F. _____ Section 1. Section 99G.2, subsection 3, Code 2009, is 1 amended to read as follows: 2 3. That lottery games shall be operated and managed in a 3 manner that provides continuing entertainment to the public, 4 maximizes revenues, protects the interests of customers, and 5 ensures that the lottery is operated with integrity and dignity 6 and free from political influence. 7 Sec. 2. Section 99G.31, subsection 2, paragraphs a and e, 8 Code 2009, are amended to read as follows: 9 a. The prize shall be given to the person who presents a 10 winning ticket only after the authority, retailer, or employee 11 of a retailer has verified that there is a signature on each 12 winning ticket submitted for checking or validation . A prize 13 may be given to only one person per winning ticket. However, a 14 prize shall be divided between holders of winning tickets if 15 there is more than one winning ticket. Payment Notwithstanding 16 the requirement to sign a winning ticket, payment of a prize 17 may be made to the estate of a deceased prize winner or to 18 another person pursuant to an appropriate judicial order issued 19 by an Iowa court of competent jurisdiction. 20 e. No prize shall be paid upon a ticket or share purchased 21 or sold obtained in violation of this chapter. Any such prize 22 shall constitute an unclaimed prize for purposes of this 23 section. 24 Sec. 3. Section 99G.36, Code 2009, is amended by adding the 25 following new subsection: 26 NEW SUBSECTION . 4. A retailer or an employee of a retailer 27 shall not charge a fee to a person who presents a winning 28 ticket, shall not pay less than the designated value of the 29 prize, and shall not purchase or otherwise acquire the ticket 30 for less than the designated value of the prize. A retailer or 31 an employee of a retailer shall not submit in the retailer or 32 employee’s name a prize claim that originally was presented for 33 payment by the holder of a winning ticket to whom the retailer 34 or employee paid a discounted prize amount or from whom the 35 -1- LSB 5437DP (12) 83 ec/nh 1/ 3

S.F. _____ H.F. _____ retailer or employee received payment in return for making the 1 claim. A person who violates the provisions of this subsection 2 is guilty of an aggravated misdemeanor. 3 Sec. 4. NEW SECTION . 99G.36A Recovery of improperly won or 4 claimed prizes. 5 1. When the authority finds that a prize has been won 6 in violation of this chapter, the authority shall pursue 7 forfeiture, recoupment, or restitution of the prize or proceeds 8 of the prize pursuant to the requirements of this section. 9 2. The value of any prize won in violation of this chapter 10 shall be recoverable as restitution pursuant to chapter 11 910. The authority shall adopt rules pursuant to chapter 17A 12 providing for procedures dealing with the following matters: 13 a. The forfeiture of any prize won in violation of this 14 chapter, when the prize has not yet been awarded. 15 b. The recoupment of any prize, or proceeds of the prize, 16 won in violation of this chapter, when the prize has already 17 been awarded. Such recoupment efforts may include but are not 18 limited to initiation of a civil lawsuit, garnishment, and 19 prize offset as provided in section 99G.41. 20 c. The filing of a claim with the appropriate county 21 attorney to seek restitution to recover the value of the prize 22 won in violation of this chapter, when a prize has already 23 been awarded and the matter is the subject of a criminal 24 prosecution. 25 3. Any prize or proceeds of a prize recovered pursuant 26 to this section shall be added to the pool from which future 27 prizes are to be awarded or used for special prize promotions. 28 EXPLANATION 29 This bill concerns the Iowa lottery authority. 30 Code section 99G.2 is amended to provide that lottery games 31 shall be operated and managed in a way to protect the interests 32 of customers. 33 Code section 99G.31, concerning prizes, is amended to 34 provide that prizes shall be awarded only after the authority, 35 -2- LSB 5437DP (12) 83 ec/nh 2/ 3

S.F. _____ H.F. _____ retailer, or employee of a retailer has verified that there is 1 a signature on each winning ticket submitted for checking or 2 validation. 3 Code section 99G.36, concerning criminal penalties for 4 certain lottery-related violations, is amended. The bill 5 provides that it is an aggravated misdemeanor for a retailer 6 to charge a fee to a person who presents a winning ticket, pay 7 less than the designated value of the prize, or purchase or 8 otherwise acquire the ticket for less than the designated value 9 of the prize. In addition, the bill makes it an aggravated 10 misdemeanor for a retailer or an employee of a retailer to 11 submit in the retailer or employee’s name a prize claim that 12 originally was presented for payment by the holder of a winning 13 ticket to whom the retailer or employee paid a discounted prize 14 amount or from whom the retailer or employee received payment 15 in return for making the claim. An aggravated misdemeanor is 16 punishable by confinement for no more than two years and a fine 17 of at least $625 but not more than $6,250. 18 New Code section 99G.36A provides that the Iowa lottery 19 authority shall pursue forfeiture, recoupment, or restitution 20 of the prize or proceeds of the prize under Code chapter 910 21 when the authority finds that a prize has been won in violation 22 of Code chapter 99G. The bill provides that any prize or 23 proceeds of a prize recovered pursuant to this new Code section 24 shall be added to the pool from which future prizes are to be 25 awarded or used for special prize promotions. 26 -3- LSB 5437DP (12) 83 ec/nh 3/ 3