2016 -- H 7881

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LC005266

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2016

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A N   A C T

RELATING TO STATE AFFAIRS AND GOVERNMENT -- STATE LOTTERY--

DISBURSEMENT OF REVENUE

     Introduced By: Representatives Ucci, Winfield, Costantino, Fellela, and Kazarian

     Date Introduced: March 04, 2016

     Referred To: House Finance

     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 division 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

division for the use of the division, 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 and certified by the

director of administration. 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

controller of the state or his or her designee.

      (i) The amount of payments of prize awards to holders of winning lottery tickets shall be

determined by the division, 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) For the lottery game commonly known as "Keno", the amount of prize awards to

holders of winning Keno tickets shall be determined by the division, 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 division 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; provided

however, solely for the purpose of determining revenues remaining and available for transfer to

the state's general fund, beginning in fiscal year 2015, expenses incurred by the division in the

operation of state lotteries shall reflect the actuarially determined employer contribution to the

Employees' Retirement System consistent with the state's adopted funding policy. For financial

reporting purposes, the state lottery fund financial statements shall be prepared in accordance

with generally accepted accounting principles as promulgated by the Governmental Accounting

Standards Board; and

      (3) Payment into the general revenue fund an education aid restricted receipt account, the

establishment of which is hereby authorized, and from which account disbursements shall be

made by the treasurer to the cities and towns as education aid, of all revenues remaining in the

state lottery fund after the payments specified in subdivisions (a)(1) -- (a)(2) of this section.

Provided, disbursements made from the education aid restricted receipt account shall be in

addition to and shall not be a part of nor impact foundation level school support or be considered

a part of the state's share of such aid, as calculated pursuant to the provisions of chapter 7.2 of

title 16.

      (b) The auditor general shall conduct 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 division, and any records of lottery

sales agents that pertain to their activities as agents, for purposes of conducting 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 division.

      (c) Payments into the state's general fund education aid restricted receipt account

specified in subsection (a)(3) 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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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N   A C T

RELATING TO STATE AFFAIRS AND GOVERNMENT -- STATE LOTTERY--

DISBURSEMENT OF REVENUE

***

     This act would direct profits from the state lottery into an education aid restricted receipt

account to be disbursed as state aid to education.

     This act would take effect upon passage.

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