House Study Bill 93 - IntroducedA Bill ForAn Act 1relating to matters under the purview of the Iowa
2lottery authority, including providing for sales of lottery
3tickets through personal consumer electronic devices, and
4providing criminal penalties.
5BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1   Section 1.  Section 99G.3, Code 2019, is amended by adding
2the following new subsections:
3   NEW SUBSECTION.  4A.  “Eticket” means a ticket or share for
4a lottery game for which an electronic visual facsimile of the
5lottery game is made available to the player on a personal
6consumer electronic device.
7   NEW SUBSECTION.  6A.  “Instaplay ticket” means a ticket
8printed on paper authorized by the authority with play symbols
9that are not concealed by a removable covering.
10   NEW SUBSECTION.  12A.  “Personal consumer electronic
11device”
shall include, without limitation, player-owned
12phones, computers and tablets, and other similar devices or
13technologies, that allow access to the internet. A “personal
14consumer electronic device”
is not a monitor vending machine or
15player-activated gaming machine for purposes of this chapter.
16   NEW SUBSECTION.  14A.  “Scratch ticket” means a preprinted
17ticket that, when a protective coating is scratched or scraped
18away, indicates immediately whether the player has won.
19   Sec. 2.  Section 99G.3, subsections 6, 11, 14, and 17, Code
202019, are amended to read as follows:
   216.  “Instant lottery” or “instant ticket” means an instaplay
22ticket or a scratch ticket for
lottery game that offers
23preprinted tickets such that when a protective coating is
24scratched or scraped away, it indicates immediately whether the
25player has won
.
   2611.  “On-line lotto” means a lottery game connected to a
27central computer or system via telecommunications or other
28technological means
in which the player selects a specified
29group of numbers, symbols, or characters out of a predetermined
30range or set.
   3114.  “Retailer” means a person, licensed by the authority,
32 who sells lottery tickets or shares on behalf of the authority
33pursuant to a contract license issued by the authority.
   3417.  “Ticket” means any tangible evidence issued by the
35lottery authority to provide participation in a lottery game.
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1   Sec. 3.  Section 99G.9, subsection 3, paragraphs b and h,
2Code 2019, are amended to read as follows:
   3b.  The sale price of tickets or shares and the manner
4of sale, including but not limited to authorization of sale
5of tickets or shares at a discount for marketing purposes;
6provided, however, that a retailer may accept payment by
7cash, check, money order, debit card, or prepaid gift card,
8nondeferred electronic payments through electronic wallets or
9mobile applications,
electronic funds transfer and, or other
10form of cash-based payment, so long as it
shall not extend or
11arrange credit for the purchase of a ticket or share. As used
12in this section, “cash” means United States currency.
   13h.  The means of conducting drawings, provided that and, if
14authorized, automated drawings.

   15(1)   Drawings that are not automateddrawings shall be open
16to the public and witnessed by an independent certified public
17accountant. Equipment used to select winning tickets or shares
18or participants for prizes shall be examined by an independent
19certified public accountant prior to and after each drawing.
   20(2)  Automated drawings shall not be authorized by the board
21until the authority audits the process of selecting winning
22numbers to determine whether an automated drawing process is
23appropriate for a lottery game. If automated drawings are
24authorized and conducted for a lottery game, automated drawings
25shall be reviewable by the authority through the use of video,
26mechanical, or other means.
27   Sec. 4.  NEW SECTION.  99G.13  Personal consumer electronic
28devices.
   291.  Notwithstanding any other provision of law to the
30contrary, the authority may authorize the sale of lottery
31tickets or shares, including etickets, through personal
32consumer electronic devices for a lottery game.
   332.  The authority may, without limitation, sell through
34personal consumer electronic devices lottery tickets or shares
35for a lottery game with predetermined outcomes as well as
-2-1lottery tickets or shares for a lottery game with outcomes
2determined by random drawings or other selection processes.
3   Sec. 5.  Section 99G.24, subsection 7, Code 2019, is amended
4by adding the following new paragraph:
5   NEW PARAGRAPH.  0d.  Has direct or indirect involvement
6in the sale or transfer of tickets, shares, or prizes to
7individuals outside the jurisdiction where the tickets or
8shares were sold or the lottery prizes were awarded.
9   Sec. 6.  Section 99G.27, subsection 1, Code 2019, is amended
10by adding the following new paragraph:
11   NEW PARAGRAPH.  0b.  Direct or indirect involvement in the
12sale or transfer of tickets, shares, or prizes to individuals
13outside the state of Iowa.
14   Sec. 7.  Section 99G.31, Code 2019, is amended by adding the
15following new subsection:
16   NEW SUBSECTION.  1A.  The authority shall only pay prizes for
17lottery tickets or shares that the authority determines were
18legally purchased, legally possessed, and legally presented.
19   Sec. 8.  Section 99G.36, Code 2019, is amended by adding the
20following new subsections:
21   NEW SUBSECTION.  2A.  A person who knowingly or intentionally
22passes a lottery ticket or share in order to avoid the
23application of an offset under section 99G.41 shall be guilty
24of a class “D” felony.
25   NEW SUBSECTION.  2B.  A person who knowingly or intentionally
26passes a lottery ticket or share in order to circumvent
27prohibited player provisions found in section 99G.31,
28subsection 2, paragraphs “g” or “h” or applicable game specific
29rules shall be guilty of a class “D” felony.
30   NEW SUBSECTION.  2C.  A person who knowingly or intentionally
31claims a lottery prize on a ticket or share received from an
32individual subject to an offset under section 99G.41 shall be
33guilty of a class “D” felony.
34   NEW SUBSECTION.  2D.  A person who knowingly or intentionally
35claims a lottery prize on a ticket or share received from
-3-1a player prohibited from playing the lottery under section
299G.31, subsection 2, paragraphs “g” or “h” or applicable game
3specific rules shall be guilty of a class “D” felony.
4   Sec. 9.  Section 99G.36, subsection 3, Code 2019, is amended
5to read as follows:
   63.  No person shall knowingly or intentionally make a
7material false statement in any lottery prize claim, make a
8material false statement in any
application for a license or
9proposal to conduct lottery activities, or make a material
10false entry in any book or record which is compiled or
11maintained or submitted to the authority or the board pursuant
12to the provisions of this chapter. Any person who violates
13the provisions of this section shall be guilty of a class “D”
14felony.
15EXPLANATION
16The inclusion of this explanation does not constitute agreement with
17the explanation’s substance by the members of the general assembly.
   18This bill concerns the Iowa lottery authority.
   19Code section 99G.3, concerning matters under the purview
20of definitions, is amended. The bill adds definitions for
21“eticket”, “instaplay ticket”, “personal consumer electronic
22device”, and “scratch ticket”. “Eticket” is defined to mean a
23ticket or share for a lottery game made available to a player
24on a personal consumer electronic device. “Instaplay ticket”
25means a ticket printed on paper authorized by the authority
26with play symbols that are not concealed by a removable
27covering. “Personal consumer electronic device” is defined to
28include, without limitation, player-owned phones, computers,
29and devices or technologies that allow access to the internet.
30The bill provides that a personal consumer electronic device
31is not a monitor vending machine or player-activated gaming
32machine for purposes of Code chapter 99G. The bill also
33defines “scratch ticket” as a preprinted ticket that includes
34a protective coating that can be scratched or scraped away to
35determine whether the player has won. Definitions for “instant
-4-1lottery” or “instant ticket”, “on-line lotto”, “retailer”,
2and “ticket” are also amended. “Instant lottery” or “instant
3ticket” is amended to include only the term “instant ticket”
4which is then defined to mean an instaplay ticket or a scratch
5ticket for a lottery game. “On-line lotto” is amended to
6also allow a lottery game connected to a central system and
7to allow a game that is connected via other technological
8means. “Retailer” is amended to mean a person who sells
9lottery tickets or shares pursuant to a license, and not just a
10contract, issued by the lottery authority. “Ticket” is also
11amended to provide that the tangible evidence of a game is
12issued by the lottery authority.
   13Code section 99G.9, concerning lottery board of directors’
14duties and specifically the authority to adopt administrative
15rules, is amended. The bill authorizes the board to adopt
16rules allowing a retailer to also accept payment for a lottery
17ticket or share by prepaid gift card, nondeferred electronic
18payments through electronic wallets or mobile applications,
19or other form of cash-based payment, so long as the retailer
20does not extend or arrange for credit to purchase the ticket
21or share. The bill also provides that the board may adopt
22rules permitting automated drawings. The bill provides that
23automated drawings shall not be authorized by the board until
24the lottery authority determines whether an automated drawing
25process is appropriate for a lottery game and if authorized,
26the bill provides that automated drawings shall be reviewable
27by the lottery authority through the use of video, mechanical,
28or other means.
   29New Code section 99G.13 authorizes the lottery authority to
30sell lottery tickets and shares, including etickets, through
31personal consumer electronic devices. Lottery tickets or
32shares sold through a personal consumer electronic device may
33be for a lottery game with predetermined outcomes as well as
34for a lottery game with outcomes determined by random drawings
35or other selection processes.
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   1Code section 99G.24, concerning retailer licensing, is
2amended to provide that a person shall not be selected as
3a lottery retailer if the person has direct or indirect
4involvement in the sale or transfer of tickets, shares, or
5prizes to individuals outside the jurisdiction where the
6tickets, shares, or prizes were sold or awarded.
   7Code section 99G.27, concerning lottery retail licenses,
8is amended to provide that a lottery retail license may be
9canceled, suspended, revoked, or terminated, for direct or
10indirect involvement in the sale or transfer of tickets,
11shares, or prizes to individuals outside the state of Iowa.
   12Code section 99G.31, regarding prizes, is amended to provide
13that the lottery authority shall only pay prizes for tickets or
14shares that were legally purchased, possessed, and presented.
   15Code section 99G.36, concerning criminal penalties, is
16amended. The bill provides that a person who knowingly or
17intentionally passes a lottery ticket or share, or claims a
18lottery prize on a ticket or share received from an individual,
19in order to avoid an offset under Code section 99G.41 shall be
20guilty of a class “D” felony. The bill also provides that a
21person who knowingly or intentionally passes a lottery ticket
22or share, or claims a lottery prize on a ticket or share
23received from an individual, in order to circumvent certain
24prohibited player provisions found in Code section 99G.31 and
25applicable game specific rules shall be guilty of a class “D”
26felony. A class “D” felony is punishable by confinement for no
27more than five years and a fine of at least $750 but not more
28than $7,500.
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