State Government Committee – Week 15, 2021



HF 314 — Notifications to Legislature concerning state government leases

HF 314 establishes notice requirements relating to certain leases or purchases of real property by Department of Administrative Services (DAS) or Executive Branch authority. The bill requires the Executive Branch to provide prior written notice to the Legislative Services Agency (for Government Oversight Committee review) of any purchase or lease of real property, other than on a temporary basis, to implement programs. The bill also requires DAS to notify and provide LSA information for Government Oversight Committee review on contracts for leases in which any part or the total amount of a contract is at least $50,000.
[4/21: 46-0 (Excused: Mathis, Nunn, Schultz, Whiting)]

HF 429 – Lottery operations

HF 429 focuses on several security-related aspects of the lottery’s operations. Some of the details in the bill are designed to state these security provisions in plain language and come, in part, at the suggestion of local prosecutors and law enforcement who believe that greater clarity in Iowa Code could assist their work. Other changes in the bill are in reaction to Iowa Lottery experiences and lottery industry trends.

The bill amends the definition of “retailer” to mean a person who sells lottery tickets, and not just a contract, issued by the lottery authority. It amends the lottery prize section, clarifying that the lottery must only pay prizes for tickets or shares that were legally purchased, possessed and presented. As amended to conform to the House, the bill modifies criminal penalties so that a person who knowingly or intentionally passes a lottery ticket, or claims a lottery prize on a ticket from someone else, to avoid an offset or to circumvent certain prohibited player provisions, will be guilty of penalties from a serious misdemeanor up to a Class C felony.
[4/21: 46-0 (Excused: Mathis, Nunn, Schultz, Whiting)]

HF 766 – Third party delivery of alcohol

HF 766 would authorize a retailer to use a third party to deliver alcoholic beverages, provided the licensee or permittee has entered into a written agreement with the third party that authorizes the third party to act as an agent of the licensee or permittee for the purpose of delivering alcoholic liquor, wine or beer. This third party would act as an agent of the retailer and would be responsible for abiding by the requirements and restrictions of Iowa law when completing the delivery. Any violation of Iowa Code or Iowa Rules (e.g., delivery to an underage person, delivery to an intoxicated person) by the agent of a licensee is deemed to be a violation committed by the licensee or permittee. As amended to conform with the House, all licensees must submit a list of names and addresses of all people, including third party delivery agents, to the Alcoholic Beverages Division.

If the licensee violates the rules regarding delivery of alcoholic beverages by retailers, the licensee will not be assessed a penalty if: (a) the violation was committed off of the premises and after the alcohol was in process of delivery; and (b) if an employee or third-party vender committed the violation, no penalty will be assessed if that employee or third-party does not commit another violation within a two-year period.
[4/21: 39-7 (No: Bolkcom, Celsi, Giddens, Hogg, Jochum, Costello, Guth; Excused: Mathis, Nunn, Schultz, Whiting)]

HF 785 – Amusement concession games

HF 785, as passed by the House, changes the definition of “amusement concession.” Amusement concession games of skill or chance with an instant win possibility like carnival-style games. Under current Code, these games do not include casino-style games, and the bill adds that amusement concession also does not include nudge games or swap games. A “nudge game” is one in which a participant spins reels and may choose to nudge one or more reels in any direction to complete a winning combination or pattern. A “swap game” is one in which a participant spins reels or simulated reels and may choose to swap, move, or substitute one or more icons or symbols to create a winning combination or pattern.

The bill adds a new Code section allowing video game-type amusement to be licensed as an amusement concession if the game is conducted through continuous gameplay and complies with all requirements and rules from the Department of Inspections and Appeals. Prizes will be awarded based solely upon a participant’s successful completion of a required skill or task in the course of the game’s play. Participant skill is be necessary to influence the outcome of the game’s play but is not required to be the predominant factor in determining whether a prize is awarded. The game may be programmed to ensure a set payout percentage to participants of at least 80%. If it’s a set payout percentage, the operator must post that information for everyone to see. The game may also be programmed to award prizes at variable frequency or difficulty.
[4/21: 45-1 (Excused: Mathis, Nunn, Schultz, Whiting)]