Amends and adds to existing law to prohibit bulk lottery ticket purchases.

LEGISLATURE OF THE STATE OF IDAHO Sixty-eighth Legislature Second Regular Session - 2026 IN THE HOUSE OF REPRESENTATIVES HOUSE BILL NO. 504 BY STATE AFFAIRS COMMITTEE AN ACT1 RELATING TO THE IDAHO STATE LOTTERY; AMENDING SECTION 67-7404, IDAHO CODE,2 TO DEFINE TERMS AND TO MAKE TECHNICAL CORRECTIONS; AMENDING CHAPTER 74,3 TITLE 67, IDAHO CODE, BY THE ADDITION OF A NEW SECTION 67-7449, IDAHO4 CODE, TO ESTABLISH PROVISIONS REGARDING THE PROHIBITION OF BULK TICKET5 PURCHASES OF IDAHO LOTTERY GAMES; AMENDING SECTION 67-7449, IDAHO CODE,6 TO REDESIGNATE THE SECTION; AMENDING SECTION 67-7450, IDAHO CODE, TO7 REVISE A PROVISION REGARDING AUDIT OF FUNDS AND REPORTS AND TO REDESIG-8 NATE THE SECTION; AMENDING SECTION 67-7451, IDAHO CODE, TO REDESIGNATE9 THE SECTION; AMENDING SECTION 67-7452, IDAHO CODE, TO REDESIGNATE THE10 SECTION; AND DECLARING AN EMERGENCY AND PROVIDING AN EFFECTIVE DATE.11

Be It Enacted by the Legislature of the State of Idaho:12

SECTION 1. That Section 67-7404, Idaho Code, be, and the same is hereby13 amended to read as follows:14 67-7404. DEFINITIONS. As used in this chapter:15 (1) "Acting in concert" means and includes persons coordinating their16 purchases, sharing funds for purchases, or acting on behalf of a common in-17 terest or strategy to exceed the bulk purchase transaction limit.18 (1) (2) "Administrative costs" means personnel costs, capital outlay,19 and reasonable expenses incurred by other state agencies to effectuate the20 purposes of this chapter.21 (3) "Bulk purchase transaction" means a purchase by any person or per-22 sons acting in concert of lottery tickets exceeding five thousand dollars23 ($5,000) within a twenty-four (24) hour period, including:24 (a) Purchases occurring in a single transaction or multiple transac-25 tions; and26 (b) Purchases occurring at a single location or multiple locations.27 (2) (4) "Commission" means the Idaho state lottery commission.28 (3) (5) "Director" means the director of the lottery.29 (4) (6) "Expenses" means all costs of doing business, including, but30 not limited to, prizes, commissions, and other compensation paid to retail-31 ers, advertising and marketing costs, personnel costs, capital outlay, rea-32 sonable expenses incurred by other state agencies to effectuate the purposes33 of this chapter, depreciation of property and equipment, and other operating34 costs, all of which are to be recorded on the accrual basis of accounting in35 accordance with generally accepted accounting principles.36 (5) (7) "Lottery" or "state lottery" means the state lottery estab-37 lished and operated pursuant to this chapter.38 (6) (8) "Lottery contractor" means a person with whom the lottery has39 contracted for the purposes of providing goods and services for the state40 lottery.41

2 (7) (9) "Lottery game retailer" or "retailer" means a person with whom1 the lottery has contracted for the purpose of selling tickets or shares in2 lottery games to the public.3 (8) (10) "Lottery revenue" means revenue derived from the sale of lot-4 tery tickets and shares. Such revenues shall be recorded on the accrual ba-5 sis of accounting in accordance with generally accepted accounting princi-6 ples.7 (9) (11) "Lottery vendor" or "vendor" means any person who submits a8 bid, proposal or offer as part of a major procurement for goods or services as9 defined in subsection (11) of this section.10 (10) (12) "Low, medium and high tier claims" means the dollar amount of11 prizes awarded in accordance with rules of the state lottery.12 (11) (13) "Major procurement" means any contract with a vendor supply-13 ing lottery tickets or shares, data processing systems utilized to track,14 sell, distribute or validate lottery tickets or shares, any goods or ser-15 vices involving the determination or generation of winners in any lottery16 game, or any auditing services. A major procurement shall be undertaken17 at all times in conformance with the constitution and laws of the state of18 Idaho, and lottery. Lottery vendors in submitting a bid, proposal or of-19 fer as part of a major procurement for goods or services as defined in this20 subsection shall be undertaken at all times in conformance with the consti-21 tution and laws of the state of Idaho.22 (12) (14) "Net income" means lottery revenue and nonlottery revenue,23 less expenses, as defined in this chapter.24 (13) (15) "Person" shall be construed to mean and include means and25 includes an individual, association, corporation, club, trust, estate,26 society, company, joint stock company, receiver, trustee, assignee, ref-27 eree, or any other person acting in a fiduciary or representative capacity,28 whether appointed by a court or otherwise, and any combination of individ-29 uals. "Person" shall also be construed to The term also means and includes30 departments, commissions, agencies, and instrumentalities of the state of31 Idaho, including counties and municipalities and agencies or instrumentali-32 ties thereof.33 (14) (16) "Redemption value" means the sum total of all winnings upon34 the ticket presented for payment.35 (15) (17) "Share" means any intangible evidence of participation in a36 game conducted by the state lottery.37 (16) (18) "Ticket" means any tangible evidence issued by the lottery to38 provide participation in a game conducted by the state lottery.39 (17) (19) "Value" means any ticket shall be taken at face value.40

SECTION 2. That Chapter 74, Title 67, Idaho Code, be, and the same is41 hereby amended by the addition thereto of a NEW SECTION, to be known and des-42 ignated as Section 67-7449, Idaho Code, and to read as follows:43 67-7449. BULK PURCHASE TRANSACTIONS. (1) Bulk purchase transactions44 shall be prohibited in the state of Idaho.45 (2) The Idaho state lottery may deny payment of any prize for a lottery46 ticket if it determines the lottery ticket was purchased as part of a bulk47 purchase transaction.48

3 (3) The lottery reserves the right to investigate any ticket purchase1 patterns it deems suspicious or indicative of a bulk purchase transaction.2 The lottery's determination as to whether a violation of this section has oc-3 curred is final and binding.4 (4) In conducting such investigations, the lottery may consider the5 following sources: video surveillance, purchase records, transaction data,6 witness statements, and any other evidence it deems relevant to making a7 determination.8 (5) Any licensed lottery game retailer, or any agent or employee9 thereof, who is determined to have knowingly facilitated a bulk purchase10 transaction shall be subject to penalties, including but not limited to11 suspension or termination of the retailer's contract and corresponding cer-12 tificate of authority and any other sanctions authorized by rule or statute.13

SECTION 3. That Section 67-7449, Idaho Code, be, and the same is hereby14 amended to read as follows:15 67-7449 67-7450. CAP ON ADMINISTRATIVE COSTS. During the first year16 of operation, administrative costs shall not exceed twenty percent (20%) of17 lottery revenue. Thereafter, administrative costs shall not exceed fifteen18 percent (15%) of lottery revenue during any fiscal year. Advertising and19 promotional costs shall not exceed three and one-half percent (3 1/2%) of20 lottery revenue during any fiscal year.21

SECTION 4. That Section 67-7450, Idaho Code, be, and the same is hereby22 amended to read as follows:23 67-7450 67-7451. AUDIT OF FUNDS -- REPORTS. (1) The right is reserved24 to the state of Idaho to audit funds of the commission at any time.25 (2) On or before January 15 of each year, the director shall file a26 report with the senate state affairs committee, the house state affairs27 committee, the legislative services office, the state controller, and the28 division of financial management, a report showing the annual income and29 expenses by standard classification of the commission during the preceding30 fiscal year. The report shall also include an estimate of income to the com-31 mission for the current and next fiscal years and a projection of anticipated32 expenses by category for the current and next fiscal years. From and after33 January 15, 1990, the report shall also include a reconciliation between the34 estimated income and expenses projected and the actual income and expenses35 of the preceding fiscal year.:36 (a) The senate state affairs committee;37 (b) The house state affairs committee;38 (c) The legislative services office;39 (d) The state controller;40 (e) The division of financial management; and41 (f) The joint finance-appropriations committee. Notwithstanding any42 other provision of this chapter, the joint finance-appropriations com-43 mittee may, by appropriation, measure, limit, or modify proposed expen-44 ditures of the commission.45 (3) In addition to the reports required in subsection (2) of this sec-46 tion, the director shall also file the same report with the joint finance-ap-47

4 propriations committee. Notwithstanding any other provision of this chap-1 ter, the joint finance-appropriations committee may, by appropriation mea-2 sure, limit or modify proposed expenditures of the commission.3 (3) The report shall:4 (a) Show the annual income and expenses by standard classification of5 the commission during the preceding fiscal year;6 (b) Include an estimate of income to the commission for the current and7 next fiscal years and a projection of anticipated expenses by category8 for the current and next fiscal years; and9 (c) Include a reconciliation between the estimated income and expenses10 projected and the actual income and expenses of the preceding fiscal11 year.12

SECTION 5. That Section 67-7451, Idaho Code, be, and the same is hereby13 amended to read as follows:14 67-7451 67-7452. LOTTERY EXEMPT FROM STATE PROCUREMENT ACT. Notwith-15 standing any other provision of law to the contrary, the state lottery shall16 be exempt from the state procurement act provided in chapter 92, title 67,17 Idaho Code.18

SECTION 6. That Section 67-7452, Idaho Code, be, and the same is hereby19 amended to read as follows:20 67-7452 67-7453. SEVERABILITY. If any of the provisions of this chap-21 ter or the application thereof to any person or circumstance is held invalid,22 such invalidity shall not affect other provisions or applications of the23 chapter which can be given effect without the invalid provision or applica-24 tion, and to this end the provisions of this chapter are severable.25

SECTION 7. An emergency existing therefor, which emergency is hereby26 declared to exist, this act shall be in full force and effect on and after27 July 1, 2026.28