| Chapter 037 |
| 2025 -- S 0068 SUBSTITUTE A Enacted 06/13/2025 |
| A N A C T |
| RELATING TO STATE AFFAIRS AND GOVERNMENT -- STATE LOTTERY |
Introduced By: Senators Ciccone, Tikoian, Burke, Kallman, de la Cruz, and Dimitri |
| Date Introduced: January 23, 2025 |
| It is enacted by the General Assembly as follows: |
| SECTION 1. Section 42-61-4 of the General Laws in Chapter 42-61 entitled "State Lottery" |
| is hereby amended to read as follows: |
| 42-61-4. Powers and duties of director. |
| The director shall have the power and it shall be the director’s duty to: |
| (1) Supervise and administer the operation of lotteries in accordance with this chapter, |
| chapter 61.2 of this title and with the rules and regulations of the division; |
| (2) Act as the chief administrative officer having general charge of the office and records |
| and to employ necessary personnel to serve at the director’s pleasure and who shall be in the |
| unclassified service and whose salaries shall be set by the director of the department of revenue, |
| pursuant to the provisions of § 42-61-3; |
| (3) In accordance with this chapter and the rules and regulations of the division, license as |
| agents to sell lottery tickets those persons, as in the director’s 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 division. Every |
| licensed agent shall prominently display the agent’s license, or a copy of the agent’s license, as |
| provided in the rules and regulations of the committee; |
| (4) Confer regularly as necessary or desirable, and not less than nine (9) four (4) times per |
| year, and at the call of the chair and vice chair of the committee, with the permanent joint committee |
| on state lottery on the operation and administration of the lotteries; make available for inspection |
| by the committee, upon request, all books, records, files, and other information, and documents of |
| the division; advise the committee and recommend those matters that the director deems necessary |
| and advisable to improve the operation and administration of the lotteries; |
| (5) Suspend or revoke any license issued pursuant to this chapter, chapter 61.2 of this title |
| or the rules and regulations promulgated under this chapter and chapter 61.2 of this title; |
| (6) 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; |
| (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 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 revenue estimating |
| conference; at the end of each fiscal year the director shall submit an annual report based upon an |
| accrual system of accounting that 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; |
| (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 the director shall continue to exercise the director’s authority to study, evaluate, and |
| where deemed feasible and advisable by the director, implement lottery-related initiatives, |
| including but not limited to, pilot programs for limited periods of time, with the goal of generating |
| additional revenues to be transferred by the lottery to the general fund pursuant to § 42-61-15(a)(3). |
| Each such initiative shall be objectively evaluated from time to time using measurable criteria to |
| determine whether the initiative is generating revenue to be transferred by the lottery to the general |
| fund. Nothing herein shall be deemed to permit the implementation of an initiative that would be |
| inconsistent with existing law or that would constitute an expansion of gambling requiring voter |
| approval under applicable Rhode Island law; |
| (9) Implement the creation and sale of commercial advertising space on lottery tickets as |
| authorized by this section 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 locations 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 § 42-61-15. |
| SECTION 2. This act shall take effect upon passage. |
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| LC000471/SUB A |
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