Iowa Code § 99G.23: Vendor bonding and tax filing.

1. The department may make procurements that integrate functions such as lottery game design, lottery ticket distribution to retailers, supply of goods and services, and advertising. In all procurement decisions under this chapter, the department shall take into account the particularly sensitive nature of the lottery and shall act to promote and ensure security, honesty, fairness, and integrity in the operation and administration of the lottery and the objectives of raising net proceeds for state programs.

2. Each vendor for a major procurement shall, at the execution of the contract with the department, post a performance bond or letter of credit from a bank or credit provider acceptable to the department in an amount as deemed necessary by the department for that particular bid or contract.

3. Each vendor shall be qualified to do business in this state and shall file appropriate tax returns as provided by the laws of this state.