99G.31 - PRIZES.

        99G.31  PRIZES.
         1.  The chief executive officer shall award the designated prize
      to the holder of the ticket or share upon presentation of the winning
      ticket or confirmation of a winning share.  The prize shall be given
      to only one person as provided in this section; however, a prize
      shall be divided between holders of winning tickets if there is more
      than one winning ticket.
         2.  The authority shall adopt administrative rules, policies, and
      procedures to establish a system of verifying the validity of tickets
      or shares claimed to win prizes and to effect payment of such prizes,
      subject to the following requirements:
         a.  The prize shall be given to the person who presents a
      winning ticket.  A prize may be given to only one person per winning
      ticket.  However, a prize shall be divided between holders of winning
      tickets if there is more than one winning ticket.  Payment of a prize
      may be made to the estate of a deceased prize winner or to another
      person pursuant to an appropriate judicial order issued by an Iowa
      court of competent jurisdiction.
         b.  A prize shall not be paid arising from claimed tickets
      that are stolen, counterfeit, altered, fraudulent, unissued, produced
      or issued in error, unreadable, not received, or not recorded by the
      authority within applicable deadlines; lacking in captions that
      conform and agree with the play symbols as appropriate to the
      particular lottery game involved; or not in compliance with such
      additional specific administrative rules, policies, and public or
      confidential validation and security tests of the authority
      appropriate to the particular lottery game involved.
         c.  No particular prize in any lottery game shall be paid more
      than once, and in the event of a determination that more than one
      claimant is entitled to a particular prize, the sole remedy of such
      claimants is the award to each of them of an equal share in the
      prize.
         d.  Unclaimed prize money for the prize on a winning ticket or
      share shall be retained for a period deemed appropriate by the chief
      executive officer, subject to approval by the board.  If a valid
      claim is not made for the money within the applicable period, the
      unclaimed prize money shall be added to the pool from which future
      prizes are to be awarded or used for special prize promotions.
      Notwithstanding this subsection, the disposition of unclaimed prize
      money from multijurisdictional games shall be made in accordance with
      the rules of the multijurisdictional game.
         e.  No prize shall be paid upon a ticket or share purchased or
      sold in violation of this chapter.  Any such prize shall constitute
      an unclaimed prize for purposes of this section.
         f.  The authority is discharged of all liability upon payment
      of a prize pursuant to this section.
         g.  No ticket or share issued by the authority shall be
      purchased by and no prize shall be paid to any member of the board of
      directors; any officer or employee of the authority; or to any
      spouse, child, brother, sister, or parent residing as a member of the
      same household in the principal place of residence of any such
      person.
         h.  No ticket or share issued by the authority shall be
      purchased by and no prize shall be paid to any officer, employee,
      agent, or subcontractor of any vendor or to any spouse, child,
      brother, sister, or parent residing as a member of the same household
      in the principal place of residence of any such person if such
      officer, employee, agent, or subcontractor has access to confidential
      information which may compromise the integrity of the lottery.
         i.  The proceeds of any lottery prize shall be subject to
      state and federal income tax laws.  An amount deducted from the prize
      for payment of a state tax, pursuant to section 422.16, subsection 1,
      shall be transferred by the authority to the department of revenue on
      behalf of the prize winner.  
         Section History: Recent Form
         2003 Acts, ch 145, § 286; 2003 Acts, ch 178, §84, 121; 2003 Acts,
      ch 179, §142; 2004 Acts, ch 1101, §20