Chapter
236
2005 -- S 0551 AS AMENDED
Enacted 07/09/05
A N A C T
RELATING TO STATE
AFFAIRS AND GOVERNMENT -- STATE LOTTERY
Introduced By: Senators Bates, Damiani, and Goodwin
Date Introduced: February
10, 2005
It is enacted
by the General Assembly as follows:
SECTION
1. Sections 42-61-1, 42-61-3, 42-61-4, 42-61-5, 42-61-6, 42-61-8, 42-61-10,
42-61-12
and 42-61-15 of the General Laws in Chapter 42-61 entitled "State
Lottery" are hereby
amended
to read as follows:
42-61-1.
Lottery commission established. –Division of state lottery established.
-- (a)
There is
established a state lottery division within the department of
administration. commission
which
shall consist of nine (9) members, all of whom shall be citizens and residents
of this state;
three
(3) of whom shall be members of the senate, not more than two (2) from the same
political
party
to be appointed by the president of the senate; three (3) of whom shall be
members of the
house
of representatives, not more than two (2) from the same political party to be
appointed by
the
speaker of the house; and three (3) of whom shall be representatives of the
general public to
be
appointed by the governor.
(b) The members shall be appointed for terms of three (3) years except for the
three (3)
members
originally appointed by each of the appointing authorities; one shall be
appointed for a
term
of one year, one shall be appointed for a term of two (2) years and one for a
term of three (3)
years.
The members shall annually elect one of them as chairperson of the commission.
(c) Any vacancy on the commission, occurring for any reason prior to the
expiration of
the
term, including but not limited to termination of active membership in the
general assembly,
shall
be filled for the unexpired term by the appointing authority in the same manner
as the
original
appointment.
(d) Any member of the commission may, for cause, be summarily removed from office
by
the appointing authority, which removal shall be subject to judicial review by
the superior
court
and pending that review the member shall not carry out any duties as a
commission
member.
(e) The members of the commission shall receive no salaries but shall be
allowed
reasonable
expenses in the performance of their official duties.
42-61-3.
Appointment of director of lotteries. -- The lotteries shall be under
the
immediate
supervision and direction of a director, who shall be a qualified person to
administer
an
enterprise of the nature of a lottery. The director shall be appointed by the
governor to a five
(5)
year term with the advice and consent of the senate. The appointment shall be
reviewed or
vetted
by the Permanent Joint Committee on State Lottery according to Article 6
Section 15 of
the
Rhode Island Constitution. with
the majority approval of the commission and shall serve at
the
pleasure of the commission. The
director shall serve until his or her successor is appointed
and
qualified. Any vacancy occurring in
the office of the director shall be filled in the same
manner
as the original appointment. Pursuant to section 42-6-4 of the Rhode Island
general laws,
in
the case of a vacancy while the senate is not in session, the governor shall
appoint a director to
hold
the office until the next session thereof; provided, that no person should
serve in such a
position
for more than three (3) legislative days after the senate convenes unless that
person's
name
shall have been submitted to the senate for its approval. The director shall devote his or her
entire
time and attention to the duties of his or her office and shall not be engaged
in any other
profession
or occupation. He or she shall receive any salary that the director of the
department of
administration commission shall determine and shall be in the
unclassified service.
The
Director of Lotteries shall be removable by the governor, pursuant to the
provisions
of
section 36-1-7 of the general laws and for cause only, and removal solely for
partisan or
personal
reasons unrelated to capacity or fitness for the office shall be unlawful.
42-61-4.
Powers and duties of director. -- The director shall have the power and
it shall
be his
or her duty to:
(1) Supervise and administer the operation of lotteries in accordance with this
chapter,
chapter
61.2 and with the rules and
regulations of the commission division;
(2) Act as the chief administrative officer having general charge of the office
and records
and to
employ temporarily subject to the approval of the commission, necessary
personnel to
serve at
his pleasure and who shall be in the unclassified service and whose salaries
shall be set
by the commission
director of the department of administration;, pursuant to the
provisions of
section
36-4-16 of the general laws.
(3) Act as executive secretary of the commission;
(4) (3) In accordance with this chapter and the rules and
regulations of the commission
division, license as agents to sell lottery tickets those
persons, as in his or her opinion, who will
best
serve the public convenience and promote the sale of tickets or shares. The
director may
require
a bond from every licensed agent, in an amount provided in the rules and regulations
of
the
commission of the division.
Every licensed agent shall prominently display his or her license,
or a
copy of their license, as provided in the rules and regulations of the
commission of the
committee;
(5) (4) Confer regularly as necessary or desirable, and not less
than once each month,
with the
commission permanent joint committee on state lottery on the
operation and
administration
of the lotteries; make available for inspection by the commission committee,
upon
request,
all books, records, files, and other information, and documents of the commission
division; advise the commission committee and
recommend those matters that he or she deems
necessary
and advisable to improve the operation and administration of the lotteries;
(6) (5) Recommend to the commission that it suspend Suspend
or revoke any license
issued
pursuant to this chapter, chapter 61.2 or the rules and regulations
promulgated under this
chapter
and chapter 61.2;
(7) (6) Subject to the approval of the commission, enter Enter
into contracts for the
operation
of the lotteries, or any part of the operation of the lotteries, and into
contracts for the
promotion
of the lotteries. No contract awarded or entered into by the director may be
assigned
by
the holder except by specific written approval of the commission;
(8) (7) Ensure that monthly financial reports are prepared
providing gross monthly
revenues,
prize disbursements, other expenses, net income, and the amount transferred to
the state
general
fund for keno and for all other lottery operations; submit this report to the
state budget
officer,
the auditor general, the commission permanent joint committee on
state lottery, the
legislative
fiscal advisors, and the governor no later than the twentieth business day
following the
close of
the month; the monthly report shall be prepared in a manner prescribed by the
members
of the
revenues estimating conference; at the end of each fiscal year the director
shall submit an
annual
report based upon an accrual system of accounting which shall include a full
and complete
statement
of lottery revenues, prize disbursements and expenses, to the governor and the
general
assembly,
which report shall be a public document and shall be filed with the secretary
of state;
(9) (8) Carry on a continuous study and investigation of the
state lotteries throughout the
state,
and the operation and administration of similar laws which may be in effect in
other states
or
countries; and
(10) (9) Implement the creation and sale of commercial
advertising space on lottery
tickets
as authorized by section 42-61-2 42-61-4 of this chapter as soon
as practicable after June
22,
1994.
(10)
Promulgate rules and regulations which shall include but not be limited to:
(i)
The price of tickets or shares in the lotteries;
(ii)
The number and size of the prizes on the winning tickets or shares;
(iii)
The manner of selecting the winning tickets or shares;
(iv)
The manner of payment of prizes to the holders of winning tickets or shares;
(v) The frequency of the drawings or selections of winning tickets or shares;
(vi) The number and types of location at which tickets or shares may be sold;
(vii) The method to be used in selling tickets or shares;
(viii) The licensing of agents to sell tickets or shares, except that a person
under the age
of
eighteen (18) shall not be licensed as an agent;
(ix) The license fee to be charged to agents;
(x) The manner in which the proceeds of the sale of lottery tickets or shares
are
maintained,
reported, and otherwise accounted for;
(xi) The manner and amount of compensation to be paid licensed sales agents
necessary
to
provide for the adequate availability of tickets or shares to prospective
buyers and for the
convenience
of the general public;
(xii) The apportionment of the total annual revenue accruing from the sale of
lottery
tickets
or shares and from all other sources for the payment of prizes to the holders
of winning
tickets
or shares, for the payment of costs incurred in the operation and
administration of the
lotteries,
including the expense of the division and the costs resulting from any contract
or
contracts
entered into for promotional, advertising, consulting, or operational services
or for the
purchase
or lease of facilities, lottery equipment, and materials, for the repayment of
moneys
appropriated
to the lottery fund;
(xiii) The superior court upon petition of the director after a hearing may
issue
subpoenas
to compel the attendance of witnesses and the production of documents, papers,
books,
records,
and other evidence in any matter over which it has jurisdiction, control or
supervision. If
a person
subpoenaed to attend in the proceeding or hearing fails to obey the command of
the
subpoena
without reasonable cause, or if a person in attendance in the proceeding or
hearing
refuses
without lawful cause to be examined or to answer a legal or pertinent question
or to
exhibit
any book, account, record, or other document when ordered to do so by the
court, that
person
may be punished for contempt of the court;
(xiv) The manner, standards, and specification for a process of competitive
bidding for
division
purchases and contracts; and
(xv) The sale of commercial advertising space on the reverse side of, or in
other
available
areas upon, lottery tickets provided that all net revenue derived from the sale
of the
advertising
space shall be deposited immediately into the state's general fund and shall
not be
subject
to the provisions of section 42-61-15.
42-61-5.
Sales agents. -- (a) For the purpose of this chapter, the term
"person" shall be
construed
to mean and include an individual, association, partnership, corporation,
trust, estate,
company,
receiver, trustee, referee, or other person acting in a fiduciary or
representative
capacity,
whether appointed by a court or otherwise, and any combination of individuals.
"Person"
shall be construed to mean all departments, committees, commissions,
agencies, and
instrumentalities
of the state, including counties and municipalities and agencies and
instrumentalities
of the state.
(b) The director of the state lottery commission lotteries may
license any person as a
lottery
sales agent as provided in this chapter. No license shall be issued to any
person to engage
in the
sale of lottery tickets as his or her sole occupation or business.
(c) Before issuing any license to a lottery sales agent the director shall
consider:
(1) The financial responsibility and security of the person and his or her
business or
activity;
(2) The accessibility of his or her place of business or activity to the
public;
(3) The sufficiency of existing licensed agents to serve the public interest;
(4) The volume of expected sales by the applicant;
(5) Any other factors pertaining to the public interest, convenience or trust.
(d) The director shall refuse to grant or shall suspend, pending a hearing
before the
commission division, or recommend a revocation of a
license if the applicant or licensee:
(1) Has been convicted of a felony, or any crime involving moral turpitude;
(2) Has been engaging in gambling as a significant source of income;
(3) Has been convicted of violating any gambling statutes;
(4) Has been convicted of fraud or misrepresentation in any connection;
(5) Has been found to have violated any rule, regulation, or order of the state
lottery
commission division.
The license of an agent shall be suspended by the director for any charge which
may
result
in a conviction for conduct prescribed in subdivisions (d)(1) -- (d)(5); which
suspension
shall be
effective until a final judicial determination.
(e) The director shall refuse to grant, or shall suspend, pending a hearing
before the
commission division, or recommend revocation of a license
if the applicant or licensee is a
corporation:
(1) Any of whose directors, officers, or controlling shareholders have been
found guilty
of any
of the activities specified in subsection (d);
(2) In which it appears to the director of the state lottery commission lotteries
that due to
the
experience, character, or general fitness of any director, officer, or
controlling shareholder, the
granting
of a license as a lottery sales agent would be inconsistent with the public
interest,
convenience,
or trust;
(3) Not the owner or lessee of the business at which it will conduct a lottery
sales agency
pursuant
to the license applied for, or that any person, firm, association, or
corporation other than
the
applicant shares or will share in the profits of the applicant, other than
receiving dividends as
a
shareholder, or will participate in the management of the affairs of the
applicant.
(f) Every holder of a license as a lottery sales agent shall renew the license
annually
pursuant
to the rules and regulations of the commission division. Licensees
shall pay to the
commission division a fee to be determined by the commission
director upon receipt or renewal
of a
license.
(g) Whenever requested by the director, the division of criminal identification
of the
department
of the attorney general, the superintendent of state police, any superintendent
or chief
of
police or sergeant of any city or town, shall furnish all information on
convictions, arrests and
present
investigations concerning any person who is an applicant for a license or who
is a licensee
of the
state lottery.
(h) Notwithstanding any other provision of law, any person licensed as provided
in this
chapter
is authorized and empowered to act as a lottery sales agent.
(i) Every licensed sales agent authorized pursuant to this section and every
licensed
video
lottery retailer authorized by chapter 61.2 of this title shall keep
conspicuously posted on
his or
her premises the name and telephone number of a council on problem gambling
recognized
by an appropriate
authority within state government or within the professional field of addiction
disorders
and a statement of its availability to offer assistance. The lottery commission
division
shall
supply each licensee with the required notice.
42-61-6.
Proceeds of sales -- Segregated funds. -- (a) All proceeds from the
sale of
lottery
tickets or shares received by a person in the capacity of a sales agent shall
constitute a trust
fund
until paid into the state lottery fund.
(b) The sales agent shall be personally liable for all proceeds; and failure to
pay the
lottery commission
division moneys owed, upon demand, from the sales or misappropriation of
the
funds shall constitute embezzlement under section 11-41-3.
(c) The provisions of this section shall be enforced and prosecuted by the
state police and
the
attorney general's office.
42-61-8.
Sales above fixed price -- Unlicensed sales -- Gifts. -- No person
shall sell a
ticket
or share at a price greater than that fixed by rule or regulation of the commission
division.
No
person other than a licensed lottery sales agent shall sell lottery tickets or
shares, except that
nothing
in this section shall be construed to prevent any individual purchaser from
giving lottery
tickets
or shares to another as a gift. Any person convicted of violating this section
shall be guilty
of a
misdemeanor.
42-61-10.
Prizes to lottery employees. -- No lottery prize award shall be awarded
to or
for any
officer or employee of the state lottery commission division, or
any blood relative of that
officer
or employee living as a member of that officer or employee's household.
42-61-12.
Deposit of receipts -- Reports. -- The director shall, in accordance
with rules
and
regulations, require any and all lottery sales agents to deposit to the credit
of the state lottery
fund in
financial institutions designated by the commission division all
moneys received by those
agents
from the sale of lottery tickets or shares, less the amount, if any, retained
as compensation
for the
sale of tickets or shares and less any moneys paid out as prizes by the agents,
and to file
with the
director, or his or her designated agents, reports of their receipts and
transactions in the
sale of lottery
tickets in any form and containing any information he or she may require. The
director
may make any arrangements for any person, including a financial institution, to
perform
any
functions, activities, or services in connection with the operation of the
lottery as he or she
may deem
advisable pursuant to this chapter and the rules and regulations of the commission
division, and the functions, activities, or services shall
constitute lawful functions, activities, and
services
of the person.
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 division 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 division for the use of the commission division,
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
director
of administration. The moneys in the
state lottery fund shall be allotted in the following
order,
and only for the following purposes:
(1) (i) 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 controller of the state or his or her designee.
The amount
of
payments of prize awards to holders of winning lottery tickets shall be
determined by the
commission division, but shall not be less than
forty-five percent (45%) nor more than sixty-five
percent
(65%) of the total revenue accruing from the sale of lottery tickets.
(ii) 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
division, but
shall
not be less than forty-five percent (45%) nor more than seventy-two percent
(72%) of the
total
revenue accruing from the sale of Keno tickets.
(2) Payment of expenses incurred by the commission division 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) of this section;
provided, that the
amount
to be transferred into the general revenue fund shall equal no less than
twenty-five
percent
(25%) 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
twenty-five
percent
(25%) mandate required by this section, but the amount transferred into the
general
revenue
fund shall equal no less than fifteen percent (15%) 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 division hall
deem necessary. The
auditor
general may examine all records, files, and other documents of the commission
division,
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. Sections 42-61.2-1, 42-61.2-2, 42-61.2-3, 42-61.2-4 and 42-61.2-7 of the
General
Laws in Chapter 42-61.2 entitled "Video Lottery Terminal" are hereby
amended to read
as
follows:
42-61.2-1.
Definitions. -- For the purpose of this chapter, the following words
shall
mean:
(1) "Central communication system" means a system approved by the
lottery
commission division, linking all video lottery machines
at a licensee location to provide auditing
program
information and any other information determined by the lottery. In addition,
the central
communications
system must provide all computer hardware and related software necessary for
the
establishment and implementation of a comprehensive system as required by the commission
division. The central communications licensee may provide a
maximum of fifty percent (50%) of
the
video lottery terminals.
(2) "Licensed video lottery retailer" means a pari-mutuel licensee
specifically licensed
by the
director subject to the approval of the commission division to
become a licensed video
lottery
retailer.
(3) "Net terminal income" means currency placed into a video lottery
terminal less
credits
redeemed for cash by players.
(4) "Pari-mutuel licensee" means an entity licensed and authorized to
conduct:
(i) Dog racing, pursuant to chapter 3.1 of title 41; and/or
(ii) Jai-alai games, pursuant to chapter 7 of title 41.
(5) "Technology provider" means any individual, partnership,
corporation, or association
that
designs, manufactures, installs, operates, distributes or supplies video
lottery machines or
associated
equipment for the sale or use in this state.
(6) "Video lottery games" means lottery games played on video lottery
terminals
controlled
by the lottery commission division.
(7) "Video lottery terminal" means any electronic computerized video
game machine
that,
upon the insertion of cash, is available to play a video game authorized by the
lottery
commission division, and which uses a video display and
microprocessors in which, by chance,
the
player may receive free games or credits that can be redeemed for cash. The
term does not
include
a machine that directly dispenses coins, cash, or tokens.
42-61.2-2.
State lottery commission authorized to operate video lotteries.
–Division
of
state lottery authorized to operate video lotteries. -- (a) Notwithstanding the provisions of
any
other law, the division of state lottery commission is authorized
to conduct and control video
lottery
games under its authority.
(b) Video lottery terminals may only be installed and operated at pari-mutuel
licensee
facilities
existing as of June 30, 1992, as defined in section 42-61.2-1(4) which are
specifically
approved
by the state lottery director, subject to the approval of the commission,
to be licensed
video
lottery retailers according to rules and regulations set forth by the commission
director.
(c)
Commencing July 1, 2005, the number of video lottery terminals to be installed
at
pari-mutuel
license facilities shall be established by the general assembly.
(d)
Pursuant to Article 6 section 15 of the Rhode Island Constitution, the general
assembly
shall determine the type of lotteries conducted.
42-61.2-3.
Additional powers and duties of the commission. –Additional powers and
duties
of the director. -- In addition
to the powers and duties of the state lottery commission
director under section 42-61-4, the commission director shall meet
with the lottery director for the
purpose
of promulgating promulgate
reasonable rules and regulations relating to video lottery
games
and to make recommendations and set policy for these games. These rules and
regulations
shall
be promulgated as soon as possible after July 1, 1992, and shall include but not be limited
to:
(1) The commission division shall license technology providers
capable of interfacing
with a
central communications system controlled by the commission division.
In making its
licensing
decision, the commission division shall select providers based on
the following factors:
providers
experienced in performing comparable projects, financial stability, technical
and
management
abilities, the quality of the product and service capabilities, likelihood of
timely
performance,
maximum revenue generation, its ability to pass a law enforcement background
investigation,
and any other factors found to be relevant to performance. The award of a
license to
technology
providers under this section shall satisfy the requirements of chapter 2 of
title 37. An
outside
independent testing laboratory may be utilized by the commission division
at the expense
of the
individual provider;
(2) Accounting procedures for determining the net terminal income from lottery
video
terminals,
and unclaimed prizes and credits;
(3) The type of video lottery games to be conducted;
(4) The price to play each game and the prizes or credits to be awarded;
(5) Financial reporting procedures for licensed video lottery retailers and
control
procedures
in the event that any of these retailers should become insolvent;
(6) Insurance and bonding by:
(i) Licensed video lottery retailers; and
(ii) Technology provider;
(7) The licensing of licensed video lottery retailers;
(8) The contracting with technology providers;
(9) All video lottery machines shall be linked under a central communications
system to
provide
auditing program information as approved by the lottery division.
The communications
system
approved by the lottery division may not limit participation to
only one manufacturer of
video
lottery machines by either cost of implementing the necessary program
modifications to
communicate
or the inability to communicate with the central communication system; and
(10) Any other matters necessary for video lottery terminals or for the
convenience of
the
public.
42-61.2-4.
Additional powers and duties of director and lottery commission. –
Additional
powers and duties of director and lottery division. -- In addition to the powers and
duties
set forth in sections 42-61-4 and 42-61.2-3, the director,
subject to the approval of the
lottery
commission shall have the power to:
(1) Supervise and administer the operation of video lottery games in accordance
with this
chapter
and with the rules and regulations of the commission division;
(2) Recommend to the commission that it suspend Suspend or revoke
upon a hearing any
license
issued pursuant to this chapter or the rules and regulations promulgated under
this chapter;
and
(3) Subject to the approval of the commission and in In
compliance with the provisions
of
chapter 2 of title 37, enter into contracts for the operation of a central
communications system
and
technology providers, or any part thereof.
(4) Certify monthly to the budget officer, the auditor general, the commission
permanent
joint
committee on state lottery, and to
the governor a full and complete statement of lottery
revenues,
prize disbursements and other expenses for the preceding month; ensure that
monthly
financial
reports are prepared providing gross monthly revenues, prize disbursements,
other
expenses,
and net income for keno and for all other lottery operations; submit this
report to the
state
budget officer, the auditor general, the commission permanent joint
committee on state
lottery, the legislative fiscal advisors, and the governor no
later than the twentieth business day
following
the close of the month; at the end of each fiscal year the director shall
submit an annual
report
based upon an accrual system of accounting which shall include a full and
complete
statement
of lottery revenues, prize disbursements and expenses, to the governor and the
general
assembly,
which report shall be a public document and shall be filed with the secretary
of state.
The
monthly report shall be prepared in a manner prescribed by the members of the
revenue
estimating
conference.
42-61.2-7.
Division of revenue. -- (a) Notwithstanding the provisions of section
42-61-
15, the
allocation of net terminal income derived from video lottery games is as
follows:
(1) For deposit in the general fund and to the state lottery commission division
fund for
administrative
purposes: Net terminal income not otherwise disbursed in accordance with
subdivisions
(a)(2) through (a)(5) herein;
(2) To the licensed video lottery retailer: (a) Lincoln Greyhound Park
twenty-eight and
eighty-five
hundredths percent (28.85%); (b) Newport Jai Ali twenty-six percent (26%);
(3) (i) To the technology providers who are not a party to the Master Contract
as set forth
and
referenced in Public Law 2003, Chapter 32, seven percent (7%) of the net
terminal income of
the
provider's terminals. The lottery commission shall implement an incentive
structure for the
providers
for Fiscal Year 2004 only, based on machine performance, not to exceed eight
and one-
half
percent (8.5%) of net terminal income of the provider's terminals. The lottery
commission
shall
present this incentive structure in a report to the speaker of the house, the
president of the
senate
and the governor, at least ninety (90) days prior to implementation of the
incentive
structure;
(ii) To contractors who are a party to the Master Contract as set forth and
referenced in
Public
Law 2003, Chapter 32, all sums due and payable under said Master Contract.
(4) To the city or town in which the licensed video retailer is licensed: one
percent (1%);
provided,
however, beginning January 1, 2005, the town of Lincoln shall receive one and
one
quarter
percent (1.25%); and
(5) Unclaimed prizes and credits shall remit to the general fund of the state;
(6) Payments into the state's general fund specified in subdivisions (a)(1) and
(a)(6) shall
be made
on an estimated monthly basis. Payment shall be made on the tenth day following
the
close of
the month except for the last month when payment shall be on the last business
day.
(b) Provided, however, that for the fiscal year commencing July 1, 1993 and
subsequent
fiscal
years, the sum of five million dollars ($5,000,000) to the extent possible
shall be
contributed
to the distressed communities relief program, pursuant to section 45-13-12, to
be
distributed
according to the formula and the contributions shall be as follows:
(1) One million one hundred fifty-two thousand six hundred eighty-three dollars
($1,152,683)
of the net terminal income due retailers under subdivision (a)(2) deposited as
general
revenues as follows: Lincoln Greyhound Park seven hundred sixty-seven thousand,
six
hundred
eighty-seven dollars ($767,687) and Newport Jai Alai Fronton three hundred
eighty-four
thousand
nine hundred ninety-six dollars ($384,996).
(2) Six hundred and twenty-eight thousand seven hundred and thirty-seven
dollars
($628,737)
of the net terminal income due the technology providers under subsection (a)(3)
deposited
as general revenues.
(3) Three million dollars ($3,000,000) from the state general revenue fund.
SECTION
3 Section 42-61-2 of the General Laws in Chapter 42-61 entitled "State
Lottery"
is hereby repealed.
42-61-2.
Powers and duties of commission. -- The commission shall meet
with the
director
of lotteries appointed under section 42-61-3 not less than nine (9) times each
year, for the
purpose
of promulgating and reviewing rules and regulations relating to the lotteries,
to make
recommendations
and set policy for lotteries, to approve or reject actions of the director and
to
transact
other business that may be properly brought before the commission. The rules
and
regulations
promulgated by the commission shall include but not be limited to:
(1) The types of lotteries to be conducted;
(2) The price of tickets or shares in the lotteries;
(3) The number and size of the prizes on the winning tickets or shares;
(4) The manner of selecting the winning tickets or shares;
(5) The manner of payment of prizes to the holders of winning tickets or
shares;
(6) The frequency of the drawings or selections of winning tickets or shares;
(7) The number and types of location at which tickets or shares may be sold;
(8) The method to be used in selling tickets or shares;
(9) The licensing of agents to sell tickets or shares, except that a person
under the age of
eighteen
(18) shall not be licensed as an agent;
(10) The license fee to be charged to agents;
(11) The manner in which the proceeds of the sale of lottery tickets or shares
are
maintained,
reported, and otherwise accounted for;
(12) The manner and amount of compensation to be paid licensed sales agents
necessary
to
provide for the adequate availability of tickets or shares to prospective
buyers and for the
convenience
of the general public;
(13) The apportionment of the total annual revenue accruing from the sale of
lottery
tickets
or shares and from all other sources for the payment of prizes to the holders
of winning
tickets
or shares, for the payment of costs incurred in the operation and
administration of the
lotteries,
including the expense of the commission and the costs resulting from any
contract or
contracts
entered into for promotional, advertising, consulting, or operational services
or for the
purchase
or lease of facilities, lottery equipment, and materials, for the repayment of
moneys
appropriated
to the lottery fund;
(14) The superior court upon petition of the majority of the commission after a
hearing
may
issue subpoenas to compel the attendance of witnesses and the production of
documents,
papers,
books, records, and other evidence before it in any matter over which it has
jurisdiction,
control
or supervision. If a person subpoenaed to attend in the proceeding or hearing
fails to obey
the
command of the subpoena without reasonable cause, or if a person in attendance
in the
proceeding
or hearing refuses without lawful cause to be examined or to answer a legal or
pertinent
question or to exhibit any book, account, record, or other document when
ordered to do
so by
the court, that person may be punished for contempt of the court;
(15) No action of the commission shall be binding unless taken at a meeting at
which at
least
five (5) of the members are present and a majority of those present and voting
are in favor of
the
action of the commission. The rules and regulations promulgated by the
commission or any
amendments,
revisions, supplements, or repeal thereof, shall be immediately transmitted,
and
under
the certification of the executive secretary of the commission, to the
secretary of state for
filing;
(16) The manner, standards, and specification for a process of competitive bidding
for
commission
purchases and contracts; and
(17) The sale of commercial advertising space on the reverse side of, or in
other
available
areas upon, lottery tickets provided that all net revenue derived from the sale
of the
advertising
space shall be deposited immediately into the state's general fund and shall
not be
subject
to the provisions of section 42-61-15.
SECTION
4. Title 22 of the General Laws entitled "General Assembly" is hereby
amended
by adding thereto the following chapter:
CHAPTER
14.2
PERMANENT JOINT COMMITTEE ON
STATE LOTTERY
22-14.2-1.
Permanent joint committee on state lottery - Composition. – There is
hereby
created a permanent joint committee on state lottery. The permanent joint committee on
state
lottery shall consist of eight (8) members; four (4) of whom shall be members
of the senate,
not
more than three (3) from the same political party to be appointed by the senate
president; and
four
(4) of whom shall be members of the house of representatives, not more than
three (3) from
the
same political party to be appointed by the speaker of the house.
The
senate president and the speaker of the house shall consult with the house and
senate
minority
leaders on the appointment of the minority members.
22-14.2-2. Powers and duties of permanent joint committee on state lottery.
– The
permanent
joint committee on state lottery shall have the authority to:
(a)
provide oversight to the state lottery and the division of state lottery;
(b)
confer as the committee deems desirable with the director of lotteries;
(c)
recommend the type of lotteries to be conducted;
(d)
issue subpoenas, subpoenas duces tecum and orders for the production of books,
accounts,
papers, records and documents, and;
(e)
make recommendations to the general assembly and propose legislation regarding
the
operation
of the state lottery.
SECTION 5. This act shall take effect upon passage.
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LC02083
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