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:

{ADD 42-61-15. State lottery fund. -- ADD} (a) There is hereby created the state lottery fund into which shall be deposited all revenues received by the commission from 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 state, pursuant to vouchers or invoices signed by the director of the commission and certified by the chairman 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 designee. The {ADD amount of ADD} payments of prize awards to holders of winning lottery tickets shall be {DEL equal as nearly as is practicable, to forty-five percent (45%) of the total revenue accruing from the sale of lottery tickets DEL} {ADD determined by the commission, but shall not be less than forty-five percent (45%) nor more than fifty-five percent (55%) of the total revenue accruing from the sale of lottery tickets. ADD}

(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 (1) -- (3) of this section; 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.

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