Shown verbatim: the complete text as captured from the official PDF posted by the Idaho Legislature, fetched 2026-09-25. Page and line markers are part of the official record; nothing is edited or removed. This is the introduced version. The official bill page.
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
1 AN ACT
2 RELATING TO THE IDAHO STATE LOTTERY; AMENDING SECTION 67-7404, IDAHO CODE,
3 TO DEFINE TERMS AND TO MAKE TECHNICAL CORRECTIONS; AMENDING CHAPTER 74,
4 TITLE 67, IDAHO CODE, BY THE ADDITION OF A NEW SECTION 67-7449, IDAHO
5 CODE, TO ESTABLISH PROVISIONS REGARDING THE PROHIBITION OF BULK TICKET
6 PURCHASES OF IDAHO LOTTERY GAMES; AMENDING SECTION 67-7449, IDAHO CODE,
7 TO REDESIGNATE THE SECTION; AMENDING SECTION 67-7450, IDAHO CODE, TO
8 REVISE A PROVISION REGARDING AUDIT OF FUNDS AND REPORTS AND TO REDESIG-
9 NATE THE SECTION; AMENDING SECTION 67-7451, IDAHO CODE, TO REDESIGNATE
10 THE SECTION; AMENDING SECTION 67-7452, IDAHO CODE, TO REDESIGNATE THE
11 SECTION; AND DECLARING AN EMERGENCY AND PROVIDING AN EFFECTIVE DATE.
12 Be It Enacted by the Legislature of the State of Idaho:
13 SECTION 1. That Section 67-7404, Idaho Code, be, and the same is hereby
14 amended to read as follows:
15 67-7404. DEFINITIONS. As used in this chapter:
16 (1) "Acting in concert" means and includes persons coordinating their
17 purchases, sharing funds for purchases, or acting on behalf of a common in-
18 terest or strategy to exceed the bulk purchase transaction limit.
19 (1) (2) "Administrative costs" means personnel costs, capital outlay,
20 and reasonable expenses incurred by other state agencies to effectuate the
21 purposes of this chapter.
22 (3) "Bulk purchase transaction" means a purchase by any person or per-
23 sons acting in concert of lottery tickets exceeding five thousand dollars
24 ($5,000) within a twenty-four (24) hour period, including:
25 (a) Purchases occurring in a single transaction or multiple transac-
26 tions; and
27 (b) Purchases occurring at a single location or multiple locations.
28 (2) (4) "Commission" means the Idaho state lottery commission.
29 (3) (5) "Director" means the director of the lottery.
30 (4) (6) "Expenses" means all costs of doing business, including, but
31 not limited to, prizes, commissions, and other compensation paid to retail-
32 ers, advertising and marketing costs, personnel costs, capital outlay, rea-
33 sonable expenses incurred by other state agencies to effectuate the purposes
34 of this chapter, depreciation of property and equipment, and other operating
35 costs, all of which are to be recorded on the accrual basis of accounting in
36 accordance with generally accepted accounting principles.
37 (5) (7) "Lottery" or "state lottery" means the state lottery estab-
38 lished and operated pursuant to this chapter.
39 (6) (8) "Lottery contractor" means a person with whom the lottery has
40 contracted for the purposes of providing goods and services for the state
41 lottery.
2
1 (7) (9) "Lottery game retailer" or "retailer" means a person with whom
2 the lottery has contracted for the purpose of selling tickets or shares in
3 lottery games to the public.
4 (8) (10) "Lottery revenue" means revenue derived from the sale of lot-
5 tery tickets and shares. Such revenues shall be recorded on the accrual ba-
6 sis of accounting in accordance with generally accepted accounting princi-
7 ples.
8 (9) (11) "Lottery vendor" or "vendor" means any person who submits a
9 bid, proposal or offer as part of a major procurement for goods or services as
10 defined in subsection (11) of this section.
11 (10) (12) "Low, medium and high tier claims" means the dollar amount of
12 prizes awarded in accordance with rules of the state lottery.
13 (11) (13) "Major procurement" means any contract with a vendor supply-
14 ing lottery tickets or shares, data processing systems utilized to track,
15 sell, distribute or validate lottery tickets or shares, any goods or ser-
16 vices involving the determination or generation of winners in any lottery
17 game, or any auditing services. A major procurement shall be undertaken
18 at all times in conformance with the constitution and laws of the state of
19 Idaho, and lottery. Lottery vendors in submitting a bid, proposal or of-
20 fer as part of a major procurement for goods or services as defined in this
21 subsection shall be undertaken at all times in conformance with the consti-
22 tution and laws of the state of Idaho.
23 (12) (14) "Net income" means lottery revenue and nonlottery revenue,
24 less expenses, as defined in this chapter.
25 (13) (15) "Person" shall be construed to mean and include means and
26 includes an individual, association, corporation, club, trust, estate,
27 society, company, joint stock company, receiver, trustee, assignee, ref-
28 eree, or any other person acting in a fiduciary or representative capacity,
29 whether appointed by a court or otherwise, and any combination of individ-
30 uals. "Person" shall also be construed to The term also means and includes
31 departments, commissions, agencies, and instrumentalities of the state of
32 Idaho, including counties and municipalities and agencies or instrumentali-
33 ties thereof.
34 (14) (16) "Redemption value" means the sum total of all winnings upon
35 the ticket presented for payment.
36 (15) (17) "Share" means any intangible evidence of participation in a
37 game conducted by the state lottery.
38 (16) (18) "Ticket" means any tangible evidence issued by the lottery to
39 provide participation in a game conducted by the state lottery.
40 (17) (19) "Value" means any ticket shall be taken at face value.
41 SECTION 2. That Chapter 74, Title 67, Idaho Code, be, and the same is
42 hereby amended by the addition thereto of a NEW SECTION, to be known and des-
43 ignated as Section 67-7449, Idaho Code, and to read as follows:
44 67-7449. BULK PURCHASE TRANSACTIONS. (1) Bulk purchase transactions
45 shall be prohibited in the state of Idaho.
46 (2) The Idaho state lottery may deny payment of any prize for a lottery
47 ticket if it determines the lottery ticket was purchased as part of a bulk
48 purchase transaction.
3
1 (3) The lottery reserves the right to investigate any ticket purchase
2 patterns it deems suspicious or indicative of a bulk purchase transaction.
3 The lottery's determination as to whether a violation of this section has oc-
4 curred is final and binding.
5 (4) In conducting such investigations, the lottery may consider the
6 following sources: video surveillance, purchase records, transaction data,
7 witness statements, and any other evidence it deems relevant to making a
8 determination.
9 (5) Any licensed lottery game retailer, or any agent or employee
10 thereof, who is determined to have knowingly facilitated a bulk purchase
11 transaction shall be subject to penalties, including but not limited to
12 suspension or termination of the retailer's contract and corresponding cer-
13 tificate of authority and any other sanctions authorized by rule or statute.
14 SECTION 3. That Section 67-7449, Idaho Code, be, and the same is hereby
15 amended to read as follows:
16 67-7449 67-7450. CAP ON ADMINISTRATIVE COSTS. During the first year
17 of operation, administrative costs shall not exceed twenty percent (20%) of
18 lottery revenue. Thereafter, administrative costs shall not exceed fifteen
19 percent (15%) of lottery revenue during any fiscal year. Advertising and
20 promotional costs shall not exceed three and one-half percent (3 1/2%) of
21 lottery revenue during any fiscal year.
22 SECTION 4. That Section 67-7450, Idaho Code, be, and the same is hereby
23 amended to read as follows:
24 67-7450 67-7451. AUDIT OF FUNDS -- REPORTS. (1) The right is reserved
25 to the state of Idaho to audit funds of the commission at any time.
26 (2) On or before January 15 of each year, the director shall file a
27 report with the senate state affairs committee, the house state affairs
28 committee, the legislative services office, the state controller, and the
29 division of financial management, a report showing the annual income and
30 expenses by standard classification of the commission during the preceding
31 fiscal year. The report shall also include an estimate of income to the com-
32 mission for the current and next fiscal years and a projection of anticipated
33 expenses by category for the current and next fiscal years. From and after
34 January 15, 1990, the report shall also include a reconciliation between the
35 estimated income and expenses projected and the actual income and expenses
36 of the preceding fiscal year.:
37 (a) The senate state affairs committee;
38 (b) The house state affairs committee;
39 (c) The legislative services office;
40 (d) The state controller;
41 (e) The division of financial management; and
42 (f) The joint finance-appropriations committee. Notwithstanding any
43 other provision of this chapter, the joint finance-appropriations com-
44 mittee may, by appropriation, measure, limit, or modify proposed expen-
45 ditures of the commission.
46 (3) In addition to the reports required in subsection (2) of this sec-
47 tion, the director shall also file the same report with the joint finance-ap-
4
1 propriations committee. Notwithstanding any other provision of this chap-
2 ter, the joint finance-appropriations committee may, by appropriation mea-
3 sure, limit or modify proposed expenditures of the commission.
4 (3) The report shall:
5 (a) Show the annual income and expenses by standard classification of
6 the commission during the preceding fiscal year;
7 (b) Include an estimate of income to the commission for the current and
8 next fiscal years and a projection of anticipated expenses by category
9 for the current and next fiscal years; and
10 (c) Include a reconciliation between the estimated income and expenses
11 projected and the actual income and expenses of the preceding fiscal
12 year.
13 SECTION 5. That Section 67-7451, Idaho Code, be, and the same is hereby
14 amended to read as follows:
15 67-7451 67-7452. LOTTERY EXEMPT FROM STATE PROCUREMENT ACT. Notwith-
16 standing any other provision of law to the contrary, the state lottery shall
17 be exempt from the state procurement act provided in chapter 92, title 67,
18 Idaho Code.
19 SECTION 6. That Section 67-7452, Idaho Code, be, and the same is hereby
20 amended to read as follows:
21 67-7452 67-7453. SEVERABILITY. If any of the provisions of this chap-
22 ter or the application thereof to any person or circumstance is held invalid,
23 such invalidity shall not affect other provisions or applications of the
24 chapter which can be given effect without the invalid provision or applica-
25 tion, and to this end the provisions of this chapter are severable.
26 SECTION 7. An emergency existing therefor, which emergency is hereby
27 declared to exist, this act shall be in full force and effect on and after
28 July 1, 2026.Every fact on this page links to its source, starting with the official bill record.