Notice of Intended Action

Pull-tab ticket general rules, ch 1105

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ARC 8352C

REVENUE DEPARTMENT[701]

Notice of Intended Action

Proposing rulemaking related to pull-tab ticket general rules
and providing an opportunity for public comment

The Revenue Department hereby proposes to adopt new Chapter 1105, “Pull-Tab Ticket General Rules,” Iowa Administrative Code.

Legal Authority for Rulemaking

This rulemaking is proposed under the authority provided in Iowa Code sections 99G.3, 99G.9, 99G.21 and 99G.31.

State or Federal Law Implemented

This rulemaking implements, in whole or in part, Iowa Code sections 99G.3, 99G.9, 99G.21 and 99G.31.

Purpose and Summary

This proposed chapter provides generally applicable rules that govern all pull-tab ticket games offered by the Iowa Lottery. Because this chapter falls under the Iowa Lottery Authority’s portion of the Iowa Administrative Code, this chapter is outdated upon implementation of the government realignment in 2023 Iowa Acts, Senate File 514. In a separate rulemaking, 531—Chapter 19 is proposed to be rescinded. This rulemaking proposes to readopt the chapter under the Department as Chapter 1105. Additionally, this rulemaking is intended to make the changes required by Executive Order 10 to remove portions of the rules that the Department determined are unnecessary, outdated, or duplicative of statutory language.

Regulatory Analysis

A Regulatory Analysis for this rulemaking was published in the Iowa Administrative Bulletin on September 18, 2024. A public hearing was held on the following date(s):

●October 8, 2024

No public comments on the Regulatory Analysis were received at the hearing or in writing. No changes have been made to the text after the Regulatory Analysis publication. The Administrative Rules Coordinator provided preclearance for publication of this Notice of Intended Action onOctober 9, 2024.

Fiscal Impact

This rulemaking has no fiscal impact to the State of Iowa.

Jobs Impact

After analysis and review of this rulemaking, no impact on jobs has been found.

Waivers

Any person who believes that the application of the discretionary provisions of this rulemaking would result in hardship or injustice to that person may petition the Department for a waiver of the discretionary provisions, if any, pursuant to rule 701—7.28(17A).

Public Comment

Any interested person may submit written or oral comments concerning this proposed rulemaking, which must be received by the Department no later than 4:30 p.m. on December 3, 2024. Comments should be directed to:

Madelyn Cutler
Department of Revenue
Hoover State Building
P.O. Box 10457
Des Moines, Iowa 50306-3457
Phone: 515.724.2924
Email: madelyn.cutler@iowa.gov

Public Hearing

Public hearings at which persons may present their views orally or in writing will be held as follows:

December 4, 2024
10 to 11 a.m.

Room 430
Hoover State Office Building
Des Moines, Iowa

December 4, 2024
1:30 to 2:30 p.m.

Room 430
Hoover State Office Building
Des Moines, Iowa

Persons who wish to make oral comments at a public hearing may be asked to state their names for the record and to confine their remarks to the subject of this proposed rulemaking.

Any persons who intend to attend a public hearing and have special requirements, such as those related to hearing or mobility impairments, should contact the Department and advise of specific needs.

Review by Administrative Rules Review Committee

The Administrative Rules Review Committee, a bipartisan legislative committee which oversees rulemaking by executive branch agencies, may, on its own motion or on written request by any individual or group, review this rulemaking at its regular monthly meeting or at a special meeting. The Committee’s meetings are open to the public, and interested persons may be heard as provided in Iowa Code section 17A.8(6).

The following rulemaking action is proposed:

ITEM 1.Adopt the following new701—Chapter 1105:

CHAPTER 1105

PULL-TAB TICKET GENERAL RULES

701—1105.1(99G) Authorization of pull-tab games. The lottery commission authorizes the lottery to sell pull-tab tickets meeting the criteria of this chapter.

This rule is intended to implement Iowa Code section 99G.9(2).

701—1105.2(99G) Definition. As used in this chapter, the following definition is applicable.

“Pull-tab tickets” means the same as “pull-tab ticket” or “pull-tab” as defined in Iowa Code section 99G.3(15).

This rule is intended to implement Iowa Code sections 99G.3 and 99G.9(2).

701—1105.3(99G) Method of play. A winning ticket is determined by matching, aligning, adding, or locating symbols or numbers under the tabs.

This rule is intended to implement Iowa Code sections 99G.9(2) and 99G.21.

701—1105.4(99G) Ticket validation requirements.

1105.4(1) Winning ticket requirements. Winning tickets are validated by use of a symbol, number, or color-coded marking. A ticket is not valid if it fails to meet any of the following requirements. The ticket must:

a.Have been issued by the Iowa lottery division in an authorized manner.

b.Not be altered, unreadable, reconstructed, or tampered with in any manner.

c.Not be counterfeit in whole or in part.

d.Not be stolen or appear on any list of omitted tickets on file with the lottery division.

e.Be complete and not blank or partially blank, miscut, misregistered, defective, or printed or produced in error.

f.Have the exact play symbols and captions specified in the game specific rules.

g.Pass all validation tests, including confidential validation tests.

1105.4(2) Lottery responsibility. If a ticket is invalid when sold, it is not eligible to receive any prize and the purchaser’s sole remedy is to submit the ticket to the lottery division’s main office for a refund of the retail sale price. The lottery has no liability or responsibility for tickets invalidated after the time of sale.

The lottery division may choose to pay a sum equal to the prize on an invalid ticket if the lottery division is able to determine the prize that would have been won on the invalid ticket by use of a symbol, number, color code, or other mechanism. The lottery division’s determination that a ticket is valid or invalid, that a ticket was valid when sold and was subsequently invalidated, and whether a sum equal to the prize on an invalid ticket will be paid are binding on all participants in the lottery. A player who wishes to challenge a determination by the lottery division under this subrule may request a contested case proceeding as described in 701—Chapter 6.

This rule is intended to implement Iowa Code sections 99G.9(2), 99G.21, and 99G.31.

701—1105.5(99G) Prizes. The number and the amount of prizes for any specific pull-tab ticket game will be determined by the lottery division and set forth by the game specific rules.

This rule is intended to implement Iowa Code sections 99G.9(2), 99G.21, and 99G.31.

701—1105.6(99G) Disclosure of odds. The overall probability of purchasing a winning ticket shall be stated on the lottery division’s website and in game literature made available by the lottery division.

This rule is intended to implement Iowa Code sections 99G.9(2) and 99G.21.

701—1105.7(99G) Claiming prizes.

1105.7(1) Claim period. Prizes must be claimed within 90 days of the announced end of the pull-tab ticket game.

1105.7(2) Prizes claimed at retailer. The game specific rules specify prizes that shall be claimed from the retailer. To claim a prize from a retailer, the winner shall sign the back of the winning ticket and fill out a claim form if required by the game specific rules. If a retailer can verify the claim, the retailer pays the prize. If a retailer cannot verify the claim, the player shall submit the ticket and a completed claim form to the lottery division. If the claim is validated by the lottery division, a draft shall be forwarded to the player in payment of the amount due. If the claim is not validated by the lottery division, the claim shall be denied and the player shall be promptly notified.

1105.7(3) Prizes claimed at a lottery division office. Game specific rules specify prizes that may be claimed only from the lottery division. To claim a prize from the lottery division, the player may personally present the completed claim form obtained from a licensed retailer or any lottery office and the ticket to any lottery office or may mail the ticket and claim form to the Iowa Lottery Division main office as defined in rule 701—2.3(17A). If the claim is validated by the lottery division, the prize or a check, warrant, or draft will be forwarded to the player in payment of the amount due less any applicable state or federal income tax withholding and less any applicable setoff withheld under Iowa Code section 99G.41. If the claim is not validated by the lottery division, the claim is denied and the player will be promptly notified.

1105.7(4) Variation by game specific rules. Game specific rules may vary the terms of this rule in respect to the manner in which prizes are claimed or the claim period applicable to any pull-tab game or special event.

This rule is intended to implement Iowa Code sections 99G.9(2), 99G.21, and 99G.31.

701—1105.8(99G) Disputed claim. If a purchaser and a retailer cannot agree as to whether a prize should be paid on a ticket, the purchaser may submit the ticket to any lottery office. The lottery division’s determination as to whether a prize should be awarded is binding on all participants in the lottery. A player who wishes to challenge a determination by the lottery division under this subrule may request a contested case proceeding as described in 701—Chapter 6.

This rule is intended to implement Iowa Code sections 99G.9(2), 99G.21, and 99G.31.

701—1105.9(99G) Lottery logo. All pull-tab tickets sold by the lottery division are to be conspicuously marked with the logo of the lottery.

This rule is intended to implement Iowa Code sections 99G.9(2), 99G.21, and 99G.31.

701—1105.10(99G) End of game. The lottery division will announce the end of any pull-tab ticket game or games.

This rule is intended to implement Iowa Code sections 99G.9(2) and 99G.21.

Revenue Department

Closed For Comments

This notice is now closed for comments. Collection of comments closed on 10/9/2024.

Official Document

The official published PDF of this document is available from the Iowa General Assembly’s Administrative Rules page.

View Official PDF

View the Iowa Administrative Bulletin for 11/13/2024.

View Bulletin

Administrative Rule References

The following administrative rule references were added to this document. You may click a reference to view related notices.

Rule 701-1105.1 Rule 701-1105.10 Rule 701-1105.2 Rule 701-1105.3 Rule 701-1105.4 Rule 701-1105.5 Rule 701-1105.6 Rule 701-1105.7 Rule 701-1105.8 Rule 701-1105.9 Rule 701-2.3

Iowa Code References

The following Iowa code references were added to this document. You may click a reference to view related notices.

Iowa Code 99G.21 Iowa Code 99G.3 Iowa Code 99G.3(15) Iowa Code 99G.31 Iowa Code 99G.41 Iowa Code 99G.9(2)
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