2012 -- H 8110

=======

LC02525

=======

STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2012

____________

A N A C T

RELATING TO STATE AFFAIRS AND GOVERNMENT - STATE LOTTERY

     Introduced By: Representatives San Bento, Kennedy, Petrarca, and O`Neill

     Date Introduced: May 02, 2012

     Referred To: House Finance

It is enacted by the General Assembly as follows:

1-1

     SECTION 1. Section 42-61-15 of the General Laws in Chapter 42-61 entitled "State

1-2

Lottery" is hereby amended to read as follows:

1-3

     42-61-15. State lottery fund. -- (a) There is created the state lottery fund, into which

1-4

shall be deposited all revenues received by the division from the sales of lottery tickets and

1-5

license fees. The fund shall be in the custody of the general treasurer, subject to the direction of

1-6

division for the use of the division, and money shall be disbursed from it on the order of the

1-7

controller of the state, pursuant to vouchers or invoices signed by the director and certified by the

1-8

director of administration. The moneys in the state lottery fund shall be allotted in the following

1-9

order, and only for the following purposes:

1-10

      (1) (i) Establishing a prize fund from which payments of the prize awards shall be

1-11

disbursed to holders of winning lottery tickets on checks signed by the director and countersigned

1-12

by the controller of the state or his or her designee. The amount of payments of prize awards to

1-13

holders of winning lottery tickets shall be determined by the division, but shall not be less than

1-14

forty-five percent (45%) nor more than sixty-five percent (65%) of the total revenue accruing

1-15

from the sale of lottery tickets.

1-16

      (ii) However, for the lottery game commonly known as "Keno", the amount of prize

1-17

awards to holders of winning Keno tickets shall be determined by the division, but shall not be

1-18

less than forty-five percent (45%) nor more than seventy-two percent (72%) of the total revenue

1-19

accruing from the sale of Keno tickets.

2-20

      (2) Payment of expenses incurred by the division in the operation of the state lotteries

2-21

including, but not limited to, costs arising from contracts entered into by the director for

2-22

promotional, consulting, or operational services, salaries of professional, technical, and clerical

2-23

assistants, and purchases or lease of facilities, lottery equipment, and materials;

2-24

      (3) Repayment into the general revenue fund of the amount appropriated for the

2-25

implementation of the state lottery; and

2-26

      (4) Payment into the general revenue fund of all revenues remaining in the state lottery

2-27

fund after the payments specified in subdivisions (a)(1) -- (a)(3) of this section; provided, that the

2-28

amount to be transferred into the general revenue fund shall equal no less than twenty-five

2-29

percent (25%) of the total revenue received and accrued from the sale of lottery tickets plus any

2-30

other income earned from the lottery; provided further, that the revenue returned to the general

2-31

fund from the game commonly known as Keno, shall not be calculated as part of the twenty-five

2-32

percent (25%) mandate required by this section, but the amount transferred into the general

2-33

revenue fund shall equal no less than fifteen percent (15%) of the total Keno revenue received.

2-34

      (b) The auditor general shall conduct an annual post audit of the financial records and

2-35

operations of the lottery for the preceding year in accordance with generally accepted auditing

2-36

standards and government auditing standards. In connection with the audit, the auditor general

2-37

may examine all records, files, and other documents of the division, and any records of lottery

2-38

sales agents that pertain to their activities as agents, for purposes of conducting the audit. The

2-39

auditor general, in addition to the annual post audit, may require or conduct any other audits or

2-40

studies he or she deems appropriate, the costs of which shall be borne by the division.

2-41

      (c) Payments into the state's general fund specified in subsection (a)(4) of this section

2-42

shall be made on an estimated quarterly basis. Payment shall be made on the tenth business day

2-43

following the close of the quarter except for the fourth quarter when payment shall be on the last

2-44

business day.

2-45

     SECTION 2. This act shall take effect upon passage.

=======

LC02525

========

EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N A C T

RELATING TO STATE AFFAIRS AND GOVERNMENT - STATE LOTTERY

***

3-1

     This act would eliminate the twenty-five percent (25%) mandate to be paid into the

3-2

general revenue fund from the revenue received from lottery tickets, commonly known as

3-3

“Keno”, after required payments are made.

3-4

     This act would take effect upon passage.

=======

LC02525

=======