HF 260: A bill for an act relating to the Iowa lottery. - Iowa

Enrolled with Governor's Action → Reprinted · 7 edits

MODERATE

This bill updates Iowa's lottery laws to include a new definition for 'Lotto' games connected to central computers via telecommunications, removes outdated subsections, and clarifies definitions for self-service kiosks. It also strengthens security measures by requiring independent audits of drawing equipment, expands restrictions on who can purchase lottery tickets to prevent insider access, and establishes a new lottery fund with specific transfer timelines to the state general fund.

Scope change

The bill expands the scope of lottery regulations to include new digital lottery game types and strengthens oversight requirements for lottery operations and security staff.

DEFINITION

Added a new definition for 'Lotto' to cover lottery games connected to central computers via telecommunications, expanding the types of games regulated under Iowa law.

Removed an outdated subsection from the lottery code that is no longer applicable to current lottery operations.

Clarified the definition of 'self-service kiosk' to specify it dispenses printed lottery products only and does not provide visual or audio representations of game play, distinguishing it from gaming machines.

REQUIREMENT

Required independent certified public accountants to witness drawings and examine equipment used to select winning tickets before and after each drawing to ensure integrity.

ELIGIBILITY

Expanded restrictions on who can purchase lottery tickets to include family members and household contacts of commission members, department employees, and state service providers who have access to confidential information.

ENFORCEMENT

Added new security requirements for lottery staff, specifying that security personnel may include law enforcement-trained investigators but cannot have sworn peace officer status.

FISCAL

Modified the lottery fund transfer requirements to mandate quarterly transfers to the general fund within 45 days after quarter-end, with provisions for retaining funds for administrative expenses.

Enrolled → Enrolled with Governor's Action · 6 edits · Mar 28, 2025

MODERATE

This bill updates Iowa's lottery laws to define new game types like 'Lotto' and 'self-service kiosks', clarify reporting requirements, and strengthen security measures. It also modifies employment restrictions for lottery staff and adjusts how lottery funds are managed and transferred to the state general fund.

Scope change

The bill expands the definition of lottery games to include computer-connected games and clarifies what constitutes a self-service kiosk versus gaming machines. It also broadens restrictions on who can purchase lottery tickets to include family members of commission members and department employees.

DEFINITION

Added new definition for 'Lotto' as a computer-connected lottery game and clarified 'self-service kiosk' to exclude visual/audio game representations.

ELIGIBILITY

Expanded restrictions on lottery ticket purchases to prohibit family members (spouses, children, siblings, parents) of commission members and department employees from buying tickets if they share a household.

REQUIREMENT

Changed quarterly reporting timeline from 30 days to 45 days after quarter end for transferring lottery proceeds to the general fund.

Added requirement to protect ticket order history, inventory, and records that could compromise lottery security or retailer information.

ENFORCEMENT

Modified lottery security staff qualifications to allow law enforcement-trained staff without sworn peace officer status.

FISCAL

Added provision allowing lottery fund to retain up to 21 days of administrative expenses before quarterly transfers to general fund.

Introduced → Signed Enrolled Bill (PDF) · 6 edits · Mar 28, 2025

MODERATE

This bill amends Iowa's lottery laws to modernize terminology, clarify definitions, and consolidate reporting requirements. It adds a new definition for 'Lotto' to distinguish online games from traditional lotteries, removes outdated references to 'on-line lotto,' and reorganizes how lottery security staff are defined and trained. The bill also clarifies who is prohibited from purchasing lottery tickets or receiving prizes, expanding restrictions to include family members of commission members and department employees.

Scope change

The bill expands eligibility restrictions by adding family members of commission members and department employees to the list of individuals prohibited from purchasing lottery tickets or receiving prizes. It also shifts oversight authority for conducting hearings and administering oaths from the administrator to the director of revenue.

DEFINITION

Added a new definition for 'Lotto' to specifically mean a lottery game connected to a central computer via telecommunications where numbers are selected from a predetermined range.

Removed the term 'on-line' from the definition of 'on-line lotto' to simplify terminology and avoid redundancy.

ELIGIBILITY

Expanded restrictions on who can purchase lottery tickets or receive prizes to include spouses, children, siblings, and parents of commission members and department employees who live in the same household.

ENFORCEMENT

Transferred authority for conducting hearings and administering oaths from the lottery administrator to the director of revenue to ensure security and integrity of lottery operations.

REQUIREMENT

Consolidated and clarified reporting requirements for lottery revenues and expenses, specifying quarterly and annual reporting to the commission, governor, auditor, and general assembly.

Added new requirements for lottery security staff to include investigators with law enforcement training and experience, while clarifying they do not have sworn peace officer status.

Signed Enrolled Bill (PDF) → Enrolled · 3 edits · Mar 28, 2025

MINOR

The bill underwent formatting cleanup and minor text corrections between the signed enrolled version and the final enrolled version. The substantive policy content remains unchanged, with no new definitions, eligibility criteria, funding amounts, or operational requirements added or removed.

TECHNICAL

Removed Governor's signature block and letterhead from the beginning of the document, which was present in the signed version but not needed in the final enrolled bill.

Corrected formatting inconsistencies in section numbering and removed duplicate page headers that appeared in the signed version.

Fixed minor text errors such as inconsistent capitalization and punctuation in the report requirements section (Section 5) and employment restrictions section (Section 9).

A bill for an act relating to the Iowa lottery.

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