2012 -- S 2969

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STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2012

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A N A C T

RELATING TO STATE AFFAIRS AND GOVERNMENT - STATE LOTTERY

     Introduced By: Senator Maryellen Goodwin

     Date Introduced: May 17, 2012

     Referred To: Senate Finance

It is enacted by the General Assembly as follows:

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

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Lottery" is hereby amended to read as follows:

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

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

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

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

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

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

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order, and only for the following purposes:

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

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

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

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

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

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from the sale of lottery tickets.

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

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

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

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accruing from the sale of Keno tickets.

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

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

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

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

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

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implementation of the state lottery; and

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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business day.

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     SECTION 2. This act shall take effect upon passage.

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N A C T

RELATING TO STATE AFFAIRS AND GOVERNMENT - STATE LOTTERY

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

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

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“Keno”, after required payments are made.

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     This act would take effect upon passage.

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