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S1494......................................................by STATE AFFAIRS LOTTERY COMMISSION - ADVERTISEMENTS - Amends existing law to provide that the State Lottery Commission shall conduct its operations in accordance with the Idaho Consumer Protection Act; to further define the term "services" for the Consumer Protection Act to include operating, offering, promoting or sponsoring a lottery; and to provide unfair lottery advertising practices. 02/17 Senate intro - 1st rdg - to printing 02/18 Rpt prt - to St Aff
S1494|||| LEGISLATURE OF THE STATE OF IDAHO |||| Fifty-fourth Legislature Second Regular Session - 1998IN THE SENATE SENATE BILL NO. 1494 BY STATE AFFAIRS COMMITTEE 1 AN ACT 2 RELATING TO LOTTERIES; AMENDING SECTION 67-7408, IDAHO CODE, TO PROVIDE A 3 TECHNICAL CORRECTION AND TO PROVIDE THAT THE STATE LOTTERY COMMISSION 4 SHALL CONDUCT ITS OPERATIONS IN ACCORDANCE WITH THE IDAHO CONSUMER PROTEC- 5 TION ACT; AMENDING SECTION 48-602, IDAHO CODE, TO FURTHER DEFINE THE TERM 6 "SERVICES" AND TO MAKE TECHNICAL CORRECTIONS; AND AMENDING CHAPTER 6, 7 TITLE 48, IDAHO CODE, BY THE ADDITION OF A NEW SECTION 48-603D, IDAHO 8 CODE, TO PROVIDE UNFAIR LOTTERY ADVERTISING PRACTICES AND TO DEFINE A 9 TERM. 10 Be It Enacted by the Legislature of the State of Idaho: 11 SECTION 1. That Section 67-7408, Idaho Code, be, and the same is hereby 12 amended to read as follows: 13 67-7408. POWERS AND DUTIES OF THE COMMISSION. The commission shall be 14 responsible for establishing the goals and objectives of the lottery and shall 15 have the following duties, powers and responsibilities in addition to others 16 herein granted: 17 (1) The commission shall adopt, upon recommendation of the director, such 18 rulesand regulationsgoverning the establishment and operation 19 of the lottery as it considers necessary under this chapter to ensure the 20 integrity of the lottery and its games and to maximize the net income of the 21 lottery for the benefit of the state. Such rulesand regulations22 shall generally address, but not be limited to: 23 (a) The different types of lottery games to be conducted; 24 (b) The range of prize structures of each lottery game; 25 (c) The method, odds and frequency of selecting winning tickets and 26 shares and the manner of paying prizes to the owners of the winning tick- 27 ets and shares; 28 (d) The terms and conditions of lottery game retailer contracts which may 29 include retailer compensation, bonuses, incentives, fees for redeeming 30 claims, payment and credit terms, retailer application and renewal fees, 31 telecommunication costs, if any, to be paid or allocated to retailers and 32 bonding requirements; 33 (e) The methods to be utilized in selling and distributing lottery tick- 34 ets or shares, including the use of machines, terminals, telecommunica- 35 tions systems and data processing systems; and 36 (f) Other matters necessary or appropriate for the efficient operation 37 and administration of the lottery, for the convenience of the public, and 38 to carry out the provisions of this chapter. Every rule promulgated within 39 the authority conferred by this chapter shall be of temporary effect and 40 must be ratified by the legislature at the regular session first following 41 their adoption. Rules not approved in the above manner shall be rejected, 42 null, void and of no force and effect on July 1, following their submis- 43 sion to the legislature. 2 1 (2) The commission shall approve major procurements. 2 (3) The commission shall approve the transfer of net income in accordance 3 with the provisions of this chapter. 4 (4) The commission shall conduct its operations in accordance with 5 the Idaho consumer protection act. 6 (5) The commission shall have the authority to enter into written 7 agreements or contracts, negotiated and prepared by the director, with any 8 other state or states, the government of Canada, the provinces of Canada or an 9 agency or contractor of any of those entities for the operation and promotion 10 of a joint lottery or joint lottery games. 11 (56 ) The commission shall perform all other 12 acts necessary to carry out the purposes and provisions of this chapter. 13 SECTION 2. That Section 48-602, Idaho Code, be, and the same is hereby 14 amended to read as follows: 15 48-602. DEFINITIONS. As used in this act: 16 (1) "Person" means natural persons, corporations both foreign and domes- 17 tic, trusts, partnerships both limited and general, incorporated or unincorpo- 18 rated associations, companies, trusts, business entities, and any other legal 19 entity, or any other group associated in fact although not a legal entity or 20 any agent, assignee, heir, employee, representative or servant thereof. 21 (2) "Trade" and "commerce" mean the advertising, offering for sale, sell- 22 ing, leasing, renting, collecting debts arising out of the sale or lease of 23 goods or services or distributing goods or services, either to or from loca- 24 tions within the state of Idaho, or directly or indirectly affecting the peo- 25 ple of this state. 26 (3) "Documentary material" means the original or a copy of any book, 27 record, report, memorandum, paper, communication, tabulation, map, chart, pho- 28 tograph, audio and/or visual recording, mechanical, photographic, or elec- 29 tronic transcription or other tangible document or recording. 30 (4) "Examination" of documentary material shall include the inspection, 31 study, or copying of any such material, and the taking of testimony under oath 32 or acknowledgment in respect of any such documentary material or copy thereof. 33 (5) "Appropriate trade premises," mean s premises at which 34 either the owner or seller normally carries on a business, or where goods are 35 normally offered or exposed for sale in the course of a business carried on at 36 those premises. 37 (6) "Goods" mean s any property, tangible or intangible, 38 real, personal or mixed, and any other article, commodity, or thing of value 39 wherever situate, including certificates or coupons exchangeable for such 40 goods. 41 (7) "Services" mean s work, labor or any other act or prac- 42 tice provided or performed by a seller to or on behalf of a consumer , 43 including, but not limited to, operating, promoting or sponsoring a lottery 44 . 45 (8) "Actions or transactions permitted under laws administered by a regu- 46 latory body or officer" mean s specific acts, practices or trans- 47 actions authorized by a regulatory body or officer pursuant to a contract, 48 rule or regulation, or other properly issued order, directive or resolution. 49 (9) "Regulatory body or officer" means any person or governmental entity 50 with authority to act pursuant to state of Idaho or federal statute. 51 SECTION 3. That Chapter 6, Title 48, Idaho Code, be, and the same is 52 hereby amended by the addition thereto of a NEW SECTION , to be 3 1 known and designated as Section 48-603D, Idaho Code, and to read as follows: 2 48-603D. UNFAIR LOTTERY ADVERTISING PRACTICES. (1) As used in this sec- 3 tion "points of purchase" shall include all physical telephonic, electronic 4 and other locations, means or media at, by or through which chances to win can 5 be purchased, including, but not limited to, means of purchase supported by 6 the internet. 7 (2) It is unlawful for the lottery commission, any Indian tribe, any 8 other governmental entity or any person to advertise any lottery unless all 9 advertisements for such lottery tickets, lottery ticket dispensing devices, 10 and lottery points of purchase prominently and clearly state the following: 11 (a) For point of purchase: The estimated odds of winning each prize; the 12 method and frequency of selecting prize winners; the manner of paying 13 prizes to winners; the present value of each prize whose payment is to be 14 made over more than one (1) year; and the average percentage on the dollar 15 in money lost by players. 16 (b) For advertising: The estimated odds of winning each prize; the pres- 17 ent value of each prize whose payment is to be made over more than one (1) 18 year; and the average percentage on the dollar in money lost by players. 19 (c) For lottery tickets: The estimated odds of winning each prize; the 20 present value of each prize whose payment is to be made over more than one 21 (1) year; and the average percentage on the dollar in money lost by 22 players.
STATEMENT OF PURPOSE
RS 07989 C2
This proposal will bring lotteries under the deceptive advertising
provisions of the Idaho Consumer Protection Act. It will require disclosure of
the odds of winning and other aspects which allow the purchaser of tickets to
better evaluate the merits of buying the product.
FISCAL IMPACT
None on the general fund. There would likely be some added
printing costs for lotteries.
CONTACT: Senator Laird Noh
332- 1 333
S 1494