S.F. _____ H.F. _____ Section 1. Section 99G.3, Code 2019, is amended by adding 1 the following new subsections: 2 NEW SUBSECTION . 4A. “Eticket” means a ticket or share for 3 a lottery game for which an electronic visual facsimile of the 4 lottery game is made available to the player on a personal 5 consumer electronic device. 6 NEW SUBSECTION . 6A. “Instaplay ticket” means a ticket 7 printed on paper authorized by the authority with play symbols 8 that are not concealed by a removable covering. 9 NEW SUBSECTION . 12A. “Personal consumer electronic 10 device” shall include, without limitation, player-owned 11 phones, computers and tablets, and other similar devices or 12 technologies, that allow access to the internet. A “personal 13 consumer electronic device” is not a monitor vending machine or 14 player-activated gaming machine for purposes of this chapter. 15 NEW SUBSECTION . 14A. “Scratch ticket” means a preprinted 16 ticket that, when a protective coating is scratched or scraped 17 away, indicates immediately whether the player has won. 18 Sec. 2. Section 99G.3, subsections 6, 11, 14, and 17, Code 19 2019, are amended to read as follows: 20 6. “Instant lottery” or “instant ticket” means an instaplay 21 ticket or a scratch ticket for a lottery game that offers 22 preprinted tickets such that when a protective coating is 23 scratched or scraped away, it indicates immediately whether the 24 player has won . 25 11. “On-line lotto” means a lottery game connected to a 26 central computer or system via telecommunications or other 27 technological means in which the player selects a specified 28 group of numbers, symbols, or characters out of a predetermined 29 range or set . 30 14. “Retailer” means a person , licensed by the authority, 31 who sells lottery tickets or shares on behalf of the authority 32 pursuant to a contract license issued by the authority . 33 17. “Ticket” means any tangible evidence issued by the 34 lottery authority to provide participation in a lottery game. 35 -1- LSB 1246DP (4) 88 ec/rn 1/ 6

S.F. _____ H.F. _____ Sec. 3. Section 99G.9, subsection 3, paragraphs b and h, 1 Code 2019, are amended to read as follows: 2 b. The sale price of tickets or shares and the manner 3 of sale, including but not limited to authorization of sale 4 of tickets or shares at a discount for marketing purposes; 5 provided, however, that a retailer may accept payment by 6 cash, check, money order, debit card, or prepaid gift card, 7 nondeferred electronic payments through electronic wallets or 8 mobile applications, electronic funds transfer and , or other 9 form of cash-based payment, so long as it shall not extend or 10 arrange credit for the purchase of a ticket or share. As used 11 in this section , “cash” means United States currency. 12 h. The means of conducting drawings , provided that and, if 13 authorized, automated drawings. 14 (1) Drawings that are not automated drawings shall be open 15 to the public and witnessed by an independent certified public 16 accountant. Equipment used to select winning tickets or shares 17 or participants for prizes shall be examined by an independent 18 certified public accountant prior to and after each drawing. 19 (2) Automated drawings shall not be authorized by the board 20 until the authority audits the process of selecting winning 21 numbers to determine whether an automated drawing process is 22 appropriate for a lottery game. If automated drawings are 23 authorized and conducted for a lottery game, automated drawings 24 shall be reviewable by the authority through the use of video, 25 mechanical, or other means. 26 Sec. 4. NEW SECTION . 99G.13 Personal consumer electronic 27 devices. 28 1. Notwithstanding any other provision of law to the 29 contrary, the authority may authorize the sale of lottery 30 tickets or shares, including etickets, through personal 31 consumer electronic devices for a lottery game. 32 2. The authority may, without limitation, sell through 33 personal consumer electronic devices lottery tickets or shares 34 for a lottery game with predetermined outcomes as well as 35 -2- LSB 1246DP (4) 88 ec/rn 2/ 6

S.F. _____ H.F. _____ lottery tickets or shares for a lottery game with outcomes 1 determined by random drawings or other selection processes. 2 Sec. 5. Section 99G.24, subsection 7, Code 2019, is amended 3 by adding the following new paragraph: 4 NEW PARAGRAPH . 0d. Has direct or indirect involvement 5 in the sale or transfer of tickets, shares, or prizes to 6 individuals outside the jurisdiction where the tickets or 7 shares were sold or the lottery prizes were awarded. 8 Sec. 6. Section 99G.27, subsection 1, Code 2019, is amended 9 by adding the following new paragraph: 10 NEW PARAGRAPH . 0b. Direct or indirect involvement in the 11 sale or transfer of tickets, shares, or prizes to individuals 12 outside the state of Iowa. 13 Sec. 7. Section 99G.31, Code 2019, is amended by adding the 14 following new subsection: 15 NEW SUBSECTION . 1A. The authority shall only pay prizes for 16 lottery tickets or shares that the authority determines were 17 legally purchased, legally possessed, and legally presented. 18 Sec. 8. Section 99G.36, Code 2019, is amended by adding the 19 following new subsections: 20 NEW SUBSECTION . 2A. A person who knowingly or intentionally 21 passes a lottery ticket or share in order to avoid the 22 application of an offset under section 99G.41 shall be guilty 23 of a class “D” felony. 24 NEW SUBSECTION . 2B. A person who knowingly or intentionally 25 passes a lottery ticket or share in order to circumvent 26 prohibited player provisions found in section 99G.31, 27 subsection 2, paragraphs “g” or “h” or applicable game specific 28 rules shall be guilty of a class “D” felony. 29 NEW SUBSECTION . 2C. A person who knowingly or intentionally 30 claims a lottery prize on a ticket or share received from an 31 individual subject to an offset under section 99G.41 shall be 32 guilty of a class “D” felony. 33 NEW SUBSECTION . 2D. A person who knowingly or intentionally 34 claims a lottery prize on a ticket or share received from 35 -3- LSB 1246DP (4) 88 ec/rn 3/ 6

S.F. _____ H.F. _____ a player prohibited from playing the lottery under section 1 99G.31, subsection 2, paragraphs “g” or “h” or applicable game 2 specific rules shall be guilty of a class “D” felony. 3 Sec. 9. Section 99G.36, subsection 3, Code 2019, is amended 4 to read as follows: 5 3. No person shall knowingly or intentionally make a 6 material false statement in any lottery prize claim, make a 7 material false statement in any application for a license or 8 proposal to conduct lottery activities , or make a material 9 false entry in any book or record which is compiled or 10 maintained or submitted to the authority or the board pursuant 11 to the provisions of this chapter . Any person who violates 12 the provisions of this section shall be guilty of a class “D” 13 felony. 14 EXPLANATION 15 The inclusion of this explanation does not constitute agreement with 16 the explanation’s substance by the members of the general assembly. 17 This bill concerns the Iowa lottery authority. 18 Code section 99G.3, concerning matters under the purview 19 of definitions, is amended. The bill adds definitions for 20 “eticket”, “instaplay ticket”, “personal consumer electronic 21 device”, and “scratch ticket”. “Eticket” is defined to mean a 22 ticket or share for a lottery game made available to a player 23 on a personal consumer electronic device. “Instaplay ticket” 24 means a ticket printed on paper authorized by the authority 25 with play symbols that are not concealed by a removable 26 covering. “Personal consumer electronic device” is defined to 27 include, without limitation, player-owned phones, computers, 28 and devices or technologies that allow access to the internet. 29 The bill provides that a personal consumer electronic device 30 is not a monitor vending machine or player-activated gaming 31 machine for purposes of Code chapter 99G. The bill also 32 defines “scratch ticket” as a preprinted ticket that includes 33 a protective coating that can be scratched or scraped away to 34 determine whether the player has won. Definitions for “instant 35 -4- LSB 1246DP (4) 88 ec/rn 4/ 6

S.F. _____ H.F. _____ lottery” or “instant ticket”, “on-line lotto”, “retailer”, 1 and “ticket” are also amended. “Instant lottery” or “instant 2 ticket” is amended to include only the term “instant ticket” 3 which is then defined to mean an instaplay ticket or a scratch 4 ticket for a lottery game. “On-line lotto” is amended to 5 also allow a lottery game connected to a central system and 6 to allow a game that is connected via other technological 7 means. “Retailer” is amended to mean a person who sells 8 lottery tickets or shares pursuant to a license, and not just a 9 contract, issued by the lottery authority. “Ticket” is also 10 amended to provide that the tangible evidence of a game is 11 issued by the lottery authority. 12 Code section 99G.9, concerning lottery board of directors’ 13 duties and specifically the authority to adopt administrative 14 rules, is amended. The bill authorizes the board to adopt 15 rules allowing a retailer to also accept payment for a lottery 16 ticket or share by prepaid gift card, nondeferred electronic 17 payments through electronic wallets or mobile applications, 18 or other form of cash-based payment, so long as the retailer 19 does not extend or arrange for credit to purchase the ticket 20 or share. The bill also provides that the board may adopt 21 rules permitting automated drawings. The bill provides that 22 automated drawings shall not be authorized by the board until 23 the lottery authority determines whether an automated drawing 24 process is appropriate for a lottery game and if authorized, 25 the bill provides that automated drawings shall be reviewable 26 by the lottery authority through the use of video, mechanical, 27 or other means. 28 New Code section 99G.13 authorizes the lottery authority to 29 sell lottery tickets and shares, including etickets, through 30 personal consumer electronic devices. Lottery tickets or 31 shares sold through a personal consumer electronic device may 32 be for a lottery game with predetermined outcomes as well as 33 for a lottery game with outcomes determined by random drawings 34 or other selection processes. 35 -5- LSB 1246DP (4) 88 ec/rn 5/ 6

S.F. _____ H.F. _____ Code section 99G.24, concerning retailer licensing, is 1 amended to provide that a person shall not be selected as 2 a lottery retailer if the person has direct or indirect 3 involvement in the sale or transfer of tickets, shares, or 4 prizes to individuals outside the jurisdiction where the 5 tickets, shares, or prizes were sold or awarded. 6 Code section 99G.27, concerning lottery retail licenses, 7 is amended to provide that a lottery retail license may be 8 canceled, suspended, revoked, or terminated, for direct or 9 indirect involvement in the sale or transfer of tickets, 10 shares, or prizes to individuals outside the state of Iowa. 11 Code section 99G.31, regarding prizes, is amended to provide 12 that the lottery authority shall only pay prizes for tickets or 13 shares that were legally purchased, possessed, and presented. 14 Code section 99G.36, concerning criminal penalties, is 15 amended. The bill provides that a person who knowingly or 16 intentionally passes a lottery ticket or share, or claims a 17 lottery prize on a ticket or share received from an individual, 18 in order to avoid an offset under Code section 99G.41 shall be 19 guilty of a class “D” felony. The bill also provides that a 20 person who knowingly or intentionally passes a lottery ticket 21 or share, or claims a lottery prize on a ticket or share 22 received from an individual, in order to circumvent certain 23 prohibited player provisions found in Code section 99G.31 and 24 applicable game specific rules shall be guilty of a class “D” 25 felony. A class “D” felony is punishable by confinement for no 26 more than five years and a fine of at least $750 but not more 27 than $7,500. 28 -6- LSB 1246DP (4) 88 ec/rn 6/ 6