It is enacted by the General Assembly as follows:

SECTION 1. Section 42-61-15 of the General Laws in Chapter 42-61 entitled "State Lottery" is hereby amended to read as follows:

42-61-15. State lottery fund -- (a) There is created the state lottery fund, into which shall be deposited all revenues received by the commission from the sales of lottery tickets and license fees. The fund shall be in the custody of the general treasurer, subject to the direction of the commission for the use of the commission, and money shall be disbursed from it on the order of the controller of the state, pursuant to vouchers or invoices signed by the director of the commission and certified by the chairperson of the commission. The moneys in the state lottery fund shall be allotted in the following order, and only for the following purposes:

(1) Establishing a prize fund from which payments of the prize awards shall be disbursed to holders of winning lottery tickets on checks signed by the director and countersigned by the chairperson or his or her designee. The amount of payments of prize awards to holders of winning lottery tickets shall be determined by the commission, but shall not be less than forty-five percent (45%) nor more than fifty-five percent (55%) sixty-five percent (65%) of the total revenue accruing from the sale of lottery tickets.

However, for the lottery game commonly known as "Keno", the amount of prize awards to holders of winning Keno tickets shall be determined by the commission, but shall not be less than forty-five percent (45%) nor more than sixty-five seventy-two percent (65%) (72%) of the total revenue accruing from the sale of Keno tickets.

(2) Payment of expenses incurred by the commission in the operation of the state lotteries including but not limited to costs arising from contracts entered into by the director for promotional, consulting, or operational services, salaries of professional, technical, and clerical assistants, and purchases or lease of facilities, lottery equipment, and materials;

(3) Repayment into the general revenue fund of the amount appropriated for the implementation of the state lottery; and

(4) Payment into the general revenue fund of all revenues remaining in the state lottery fund after the payments specified in subdivisions (a)(1) -- (a)(3); provided, that the amount to be transferred into the general revenue fund shall equal no less than thirty percent (30%) of the total revenue received and accrued from the sale of lottery tickets plus any other income earned from the lottery, provided further, that the revenue returned to the general fund from the game commonly known as Keno, shall not be calculated as part of the thirty percent (30%) mandate required by this section, but the amount transferred into the general revenue fund shall equal no less than twenty percent (20%) of the total Keno revenue received.

(b) In addition to any other audit, the auditor general shall conduct semi-annual audits of all accounts and any other audits he or she or the commission shall deem necessary. The auditor general may examine all records, files, and other documents of the commission, and any records of lottery sales agents that pertain to their activities as agents, for purposes of conducting authorized audits.

(c) Payments into the state's general fund specified in subsection (a)(4) of this section shall be made on an estimated quarterly basis. Payment shall be made on the tenth business day following the close of the quarter except for the fourth quarter when payment shall be on the last business day.

SECTION 2. This act shall take effect upon passage.