Chapter 334

2005 -- S 0514

Enacted 07/19/05

A N A C T

RELATING TO STATE AFFAIRS AND GOVERNMENT -- STATE LOTTERY

Introduced By: Senator Hanna M. Gallo

Date Introduced: February 10, 2005

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) (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. 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 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, 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 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 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

an annual post audit of the financial records and operations of the lottery for the preceding year in

accordance with generally accepted auditing standards and government auditing standards. In

connection with the audit, 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. the audit. The auditor general, in addition to the

annual post audit, may require or conduct any other audits or studies he or she deems appropriate,

the costs of which shall be borne by the commission.

      (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.     

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LC01920

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