Title 67 — STATE GOVERNMENT AND STATE AFFAIRS

67-7401. Purpose. The purpose of this legislation is to establish a state lottery to generate revenue for the state with a director and a state lottery commission to oversee lottery operations. This chapter establishes a state lottery account for the deposit of receipts, for paym…

67-7402. Idaho lottery agency created. There is hereby created in the department of self-governing agencies an agency to be known as the Idaho state lottery. The Idaho state lottery shall implement and administer the provisions of this chapter.

67-7403. Initiation and operation of the lottery. The lottery shall be initiated at the earliest feasible and practical time. The lottery shall be operated to produce the maximum amount of net income to benefit the public purposes described in this chapter consonant with the publ…

67-7404. Definitions. As used in this chapter: (1) "Administrative costs" means personnel costs, capital outlay, and reasonable expenses incurred by other state agencies to effectuate the purposes of this chapter. (2) "Commission" means the Idaho state lottery commission. (3) "Di…

67-7405. Commission — Appointment — Chairman. The commission shall consist of five (5) members appointed by the governor with the advice and consent of the senate. The term of a member is five (5) years. The terms of members appointed shall expire as designated by the governor at…

67-7406. Quorum — Meetings — Minutes — Compensation. A majority of the qualified membership of the commission is a quorum. The commission may not act unless at least three (3) members concur. The commission shall not meet less than four (4) times per year. Written notice of the t…

67-7407. Director. With the advice and consent of the senate the governor shall appoint a director of the lottery, who is the chief executive officer of the lottery and secretary of the commission. The compensation of the director, including bonuses, if any, shall be established …

67-7408. Powers and duties of the commission. The commission shall be responsible for establishing the goals and objectives of the lottery and shall have the following duties, powers and responsibilities in addition to others herein granted: (1) The commission may adopt, upon rec…

67-7409. Powers and duties of the director. The director shall be responsible for the daily operations of the lottery, and shall have the following duties, powers and responsibilities in addition to others herein granted: (1) The director shall: (a) Operate and administer the lot…

67-7410. Director of lottery security. The director shall hire a security director who shall manage the lottery’s security division. The security division shall be responsible for the performance of background investigations of employees, lottery retailers, bingo and raffle opera…

67-7411. Contracting with lottery game retailers. The commission shall promulgate rules and regulations specifying the terms and conditions for contracting with lottery game retailers to provide availability of tickets or shares to prospective buyers of each lottery game. A lotte…

67-7412. Selection of lottery game retailers. The director, pursuant to rule, shall select as lottery game retailers such persons as are deemed best to serve the public convenience and to promote the sale of tickets or shares. No natural person under the age of eighteen (18) shal…

67-7413. Termination of the lottery game retailer. The director may terminate a contract with a lottery game retailer for such reasons of termination as shall be recited in such contract, which reasons shall include, but not be limited to, the knowing sale of tickets or shares to…

67-7414. Compensation for lottery game retailers. The compensation paid to lottery game retailers shall be five percent (5%) of the retail price of the tickets or shares. The director may pay lottery game retailers an additional one percent (1%) incentive bonus based on attainmen…

67-7415. Sales to persons under the age of eighteen. No tickets or shares in the lottery games shall be sold by or to persons under the age of eighteen (18). In the case of lottery tickets or shares sold by lottery game retailers or their employees, such persons shall establish s…

67-7416. Display of certificate of authority. No lottery tickets or shares shall be sold by a lottery game retailer unless the retailer has on public display on the premises a certificate of authority to sell lottery tickets or shares signed by the director.

67-7417. Lottery game retailer bonding. Under rules and regulations adopted by the commission, the director may require an appropriate bond from any lottery game retailer or may purchase blanket bonds covering the activities of selected lottery game retailers.

67-7418. Lottery game retailer accounting. Under rules and regulations adopted by the commission, the director shall establish procedures which shall be utilized by lottery game retailers to account for all tickets or shares that are sold to the public by each lottery game retail…

67-7419. Lottery game retailer payments. No payment by lottery game retailers to the state lottery for tickets or shares shall be in cash. All such payments shall be in the form of a check, bank draft, electronic fund transfer, or other recorded financial instrument as prescribed…

67-7420. Contracts for major procurements. Subject to the approval of the commission, the director may solicit bids and enter into major procurement contracts. Any such contract may be awarded to a technically competent bidder, taking into account the lowest bid, secondary cost b…

67-7421. Lottery vendor disclosures for major procurements. This section is provided to allow the commission to evaluate the competence, integrity, background, character and the nature of the true ownership and control of lottery vendors. The commission may require any person, as…

67-7422. Separation of vendors and retailers. No person, firm, association or corporation contracting as a vendor to supply lottery equipment or materials to the state for use in the operation of the lottery shall be directly or indirectly connected with any person, firm, associa…

67-7423. Enforceability of contracts. No contract with any contractor, retailer or vendor who has not complied with the disclosure requirements established by the commission, shall be entered into or be enforceable.

67-7424. Information under oath. The information required by the commission of prospective contractors, retailers and vendors shall be provided under oath.

67-7425. Misstatements or omissions. Any person wilfully making a material misstatement or material omission of any disclosure item required by the commission shall be guilty of a felony.

67-7426. Compliance with applicable laws. Each lottery contractor, retailer and vendor shall perform its contract consistent with the applicable rules of the commission, the laws of this state, federal laws, and the laws of the state or jurisdiction in which the lottery contracto…

67-7427. Vendor performance bonds. Each vendor, at the time of executing a contract, shall post a performance bond in a manner and form as required by the commission. The commission may accept other security in lieu of a bond when in its judgment the security is sufficient to gua…

67-7428. State lottery account. There is hereby created in the dedicated fund of the state treasury, the state lottery account. The state lottery account is continuously appropriated to the state lottery for the purposes of operating the lottery and fulfilling its objectives.

67-7429. Prohibition on use of state funds. It is the intent of this chapter that the state lottery, established by this chapter, shall be a self-supporting, revenue raising agency of state government. No appropriations, loans, or other transfer of state funds shall be made to th…

67-7431. Cash receipts. The following moneys shall be deposited in the state lottery account, as established under section 67-7428, Idaho Code: (1) All moneys received from the sale of lottery tickets or shares; and (2) Any other moneys received by the lottery from whatever sourc…

67-7432. Cash disbursements. The director is authorized to make the following disbursements from the state lottery account: (1) Payment of prizes directly to the holder of valid winning tickets or shares; (2) Purchase of annuities or investments to be utilized to pay future insta…

67-7433. Prize expense. Total prize expense, net of unclaimed prizes, as determined on an annual basis, shall be no less than forty-five percent (45%) of lottery revenues.

67-7434. Lottery dividends. Annually, on July 1, the lottery shall transfer three-eighths (3/8) of its net income to the permanent building fund and five-eighths (5/8) of its net income to the school district facilities fund pursuant to section 33-911, Idaho Code, after reserving…

67-7435. Reimbursements for government services. It is the intent that the lottery shall be a self-supporting agency of state government. The director shall reimburse at a reasonable rate all other governmental entities for any and all services necessary to effectuate the purpose…

67-7436. Audits. A certified public accounting firm appointed by the commission shall conduct audits of all accounts and transactions of the state lottery. The director and his agents conducting an audit under this chapter shall have access and authority to examine any and all lo…

67-7437. Prizes. Except as otherwise provided in this section, any prize won under this chapter is not assignable. If the prize winner dies before the prize is paid, the prize shall be paid to the estate of the prize winner. A prize is subject to garnishment and recovery for unpa…

67-7438. Prize claiming period. Prizes may be claimed for a period of one hundred and eighty (180) days after the drawing in which the prize was won or from the last day tickets from that specific game were sold. Prizes won through an electronic terminal shall be payable in accor…

67-7439. Taxes. Income taxes shall only be imposed on lottery prizes received from lottery tickets purchased after the effective date of this act. Lottery prizes awarded by the Idaho state lottery under six hundred dollars ($600) shall not be subject to the state income tax. No t…

67-7440. Restricted players. No lottery ticket or share may be purchased by, and no prize may be paid to, any of the following persons: (1) Any member of the commission or employee of the state lottery; or (2) Any owner, or in the case of a corporation, an owner of five percent (…

67-7441. Records. All papers, records, correspondence, communications and proceedings of the Idaho state lottery and the commission shall be open to the public except as otherwise provided by statute; provided, however, that business records and information provided to the state …

67-7442. Open public meetings of the commission. All meetings of the commission shall be open to the public and all persons shall be permitted to attend any meeting except as otherwise provided by law; provided, however, that the commission may meet in executive session to: (1) E…

67-7443. Conflict of interest. Members of the commission, the director, and the employees of the lottery shall not directly or indirectly, individually, or as a member of a partnership, or as a shareholder of a corporation, or as a participant in a joint venture or association wi…

67-7444. Limitation on actions. The commission, the director and employees of the lottery shall not be personally liable for anything done or omitted to be done in good faith in the exercise or purported exercise of powers conferred under this chapter.

67-7445. Conditions of purchase. By purchasing a ticket or share in a lottery game, a player agrees to abide by, and be bound by, the commission’s rules and regulations and by lottery game rules developed by the commission to apply to any particular lottery game involved. In part…

67-7446. Restrictions. Notwithstanding the provisions of section 23-928, Idaho Code, nothing in that section shall be construed to authorize any form of games of chance or private lotteries, except as may be authorized expressly by this chapter in accordance with the Idaho Consti…

67-7447. Lawful activity. Chapters 38 and 49, Title 18, Idaho Code, or any other state or local law or regulation providing any penalty, disability, restriction, regulation or prohibition for the manufacture, transportation, storage, distribution, advertising, possession, or sale…

67-7448. Prohibited acts — Penalties. (1) Any person may provide gift tickets or shares. With the approval of the commission, the director or a lottery retailer may provide gift tickets for promotional purposes which are approved by the commission. A ticket or share shall not be …

67-7449. Cap on administrative costs. During the first year of operation, administrative costs shall not exceed twenty percent (20%) of lottery revenue. Thereafter, administrative costs shall not exceed fifteen percent (15%) of lottery revenue during any fiscal year. Advertising …

67-7450. Audit of funds — Reports. (1) The right is reserved to the state of Idaho to audit funds of the commission at any time. (2) On or before January 15 of each year, the director shall file with the senate state affairs committee, the house state affairs committee, the legis…

67-7451. Lottery exempt from state procurement act. Notwithstanding any other provision of law to the contrary, the state lottery shall be exempt from the state procurement act provided in chapter 92, title 67, Idaho Code.