HSB 593 (LSB 5930YC (4) 91)

HOUSE FILE _____ 

BY  (PROPOSED COMMITTEE ON STATE GOVERNMENT BILL BY CHAIRPERSON BLOOMINGDALE)

A BILL FOR

An Act relating to the purchase of lottery shares and tickets by a courier service.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  Section 99G.3, Code 2026, is amended by adding the following new subsection:
   NEW SUBSECTION.  3A.  “Courier service” means a person that purchases and stores a share or ticket on behalf of a customer located in this state and delivers the share or ticket, or the prize from the share or ticket, to the customer in this state as a for-profit service.
    Sec. 2.  Section 99G.24, Code 2026, is amended by adding the following new subsection:
   NEW SUBSECTION.  10.  a.  A retailer may sell a share or ticket to a courier service that has entered into a written agreement with the retailer pursuant to paragraph “b”. A retailer shall disclose the agreement to the administrator within three business days after the execution of the agreement.
   b.  A written agreement between a courier service and a retailer to buy and sell shares and tickets must contain all of the following terms:
   (1)  A requirement that a courier service only accept an order for a share or ticket from a customer if the courier service has determined through the use of geolocation software that the customer is physically located in this state, and not located on a federally recognized Indian reservation, at the time the order is placed.
   (2)  A requirement that a courier service employ age verification software that only allows a customer who is of lawful age to purchase a share or ticket pursuant to section 99G.30 to order a share or ticket.
   (3)  A requirement that a courier service securely store a share or ticket on behalf of a customer until the prize for the share or ticket is redeemed at retail by the courier service and picked up by or delivered to the customer, or until the share or ticket is picked up by or delivered to the customer.
   (4)   A requirement that a courier service arrange the pickup by or physical delivery to the customer of a share or ticket winning a prize in excess of the amount that can be redeemed at retail as provided by the commission by rule, for the customer to then redeem the prize as otherwise provided by law.
   (5)  A requirement that a courier service maintain appropriate controls for responsible play, including the use of daily, weekly, or monthly limits that may be reduced by the customer, as well as self-exclusion capabilities. The agreement must also require advertisements and communications from the courier service to comply with applicable responsible gambling advertising guidelines.
   (6)  A requirement that a courier service only purchase shares or tickets at a dedicated courier service terminal or dedicated courier service self-service kiosk located at the retailer using cash or an automated clearinghouse transaction.
   (7)  A provision allowing a courier service to assess a reasonable fee to a customer for the cost of order fulfillment and storage.
   (8)  A prohibition on the purchase of a share or ticket through a courier service by a customer using a credit card.
   (9)  A requirement that the courier service annually obtain a report from a firm nationally recognized for providing audit, testing, or certification services that certifies that the courier service is in compliance with the written agreement between the courier service and the retailer, which the courier service shall provide to the retailer.
   c.  The commission shall issue dedicated terminals or self-service kiosks for use by courier services to retailers contracted with a courier service pursuant to this subsection. A retailer shall not commingle retail share and ticket sales with sales to a courier service.
   d.  The commission shall adopt rules pursuant to chapter 17A to implement this subsection.
EXPLANATION
The inclusion of this explanation does not constitute agreement with
the explanation’s substance by the members of the general assembly.
   This bill relates to the purchase of lottery shares and tickets by a courier service. The bill allows a courier service, defined in the bill as a person that purchases and stores a share or ticket on behalf of a customer and delivers the share or ticket, or the prize from the share or ticket, to the customer as a for-profit service, to enter into a written agreement with a lottery retailer to purchase, store, and deliver shares, tickets, and prizes on behalf of customers located in this state.
   The bill specifies certain terms that a written agreement between a courier service and a retailer must contain. These include terms for verifying the location and age of a customer making a purchase through a courier service, a requirement that a share or ticket be securely stored by a courier service before being picked up by or delivered to the customer or redeemed by the courier service for the purpose of pickup or delivery of the prize to the customer, a requirement that a courier service maintain certain responsible play controls and comply with advertising guidelines, a requirement that a courier service only purchase shares or tickets at a dedicated terminal or self-service kiosk, a provision allowing a courier service to charge reasonable fees to customers, a prohibition on the purchase of shares or tickets using a credit card, and a requirement that a courier service annually contract for an audit of the courier service’s compliance with the written agreement. Such agreements must be disclosed by the retailer to the administrator of the Iowa lottery within three business days after execution.
   The bill requires the Iowa lottery commission to issue dedicated self-service terminals or kiosks for use by courier services and prohibits a retailer from commingling retail share and ticket sales with sales to courier services.