99G.24 - RETAILER COMPENSATION -- LICENSING.
99G.24 RETAILER COMPENSATION -- LICENSING.
1. The general assembly recognizes that to conduct a successful
lottery, the authority must develop and maintain a statewide network
of lottery retailers that will serve the public convenience and
promote the sale of tickets or shares and the playing of lottery
games while ensuring the integrity of the lottery operations, games,
and activities.
2. The board shall determine the compensation to be paid to
licensed retailers. Compensation may include provision for variable
payments based on sales volume or incentive considerations.
3. The authority shall issue a license certificate to each person
with whom it contracts as a retailer for purposes of display as
provided in this section. Every lottery retailer shall post its
license certificate, or a facsimile thereof, and keep it
conspicuously displayed in a location on the premises accessible to
the public. No license shall be assignable or transferable. Once
issued, a license shall remain in effect until canceled, suspended,
or terminated by the authority.
4. A licensee shall cooperate with the authority by using
point-of-purchase materials, posters, and other marketing material
when requested to do so by the authority. Lack of cooperation is
sufficient cause for revocation of a retailer's license.
5. The board shall develop a list of objective criteria upon
which the qualification of lottery retailers shall be based.
Separate criteria shall be developed to govern the selection of
retailers of instant tickets and on-line retailers. In developing
these criteria, the board shall consider such factors as the
applicant's financial responsibility, security of the applicant's
place of business or activity, accessibility to the public,
integrity, and reputation. The criteria shall include but not be
limited to the volume of expected sales and the sufficiency of
existing licensees to serve the public convenience.
6. The applicant shall be current in filing all applicable tax
returns to the state of Iowa and in payment of all taxes, interest,
and penalties owed to the state of Iowa, excluding items under formal
appeal pursuant to applicable statutes. The department of revenue is
authorized and directed to provide this information to the authority.
7. A person, partnership, unincorporated association, authority,
or other business entity shall not be selected as a lottery retailer
if the person or entity meets any of the following conditions:
a. Has been convicted of a criminal offense related to the
security or integrity of the lottery in this or any other
jurisdiction.
b. Has been convicted of any illegal gambling activity, false
statements, perjury, fraud, or a felony in this or any other
jurisdiction.
c. Has been found to have violated the provisions of this
chapter or any regulation, policy, or procedure of the authority or
of the lottery division unless either ten years have passed since the
violation or the board finds the violation both minor and
unintentional in nature.
d. Is a vendor or any employee or agent of any vendor doing
business with the authority.
e. Resides in the same household as an officer of the
authority.
f. Is less than eighteen years of age.
g. Does not demonstrate financial responsibility sufficient
to adequately meet the requirements of the proposed enterprise.
h. Has not demonstrated that the applicant is the true owner
of the business proposed to be licensed and that all persons holding
at least a ten percent ownership interest in the applicant's business
have been disclosed.
i. Has knowingly made a false statement of material fact to
the authority.
8. Persons applying to become lottery retailers may be charged a
uniform application fee for each lottery outlet.
9. Any lottery retailer contract executed pursuant to this
section may, for good cause, be suspended, revoked, or terminated by
the chief executive officer or the chief executive officer's designee
if the retailer is found to have violated any provision of this
chapter or objective criteria established by the board. Cause for
suspension, revocation, or termination may include, but is not
limited to, sale of tickets or shares to a person under the age of
twenty-one and failure to pay for lottery products in a timely
manner. Section History: Recent Form
2003 Acts, ch 145, § 286; 2003 Acts, ch 178, §77, 121; 2003 Acts,
ch 179, §142