Chapter
641
2006 -- S 2018 AS AMENDED
Enacted 07/14/06
A N A
C T
RELATING TO THE STATE
AFFAIRS AND GOVERNMENT - STATE LOTTERY
Introduced By: Senators
Bates, Ciccone, Damiani, and Goodwin
Date Introduced: January
10, 2006
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 his
or her 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 his pleasure and who shall be in the
unclassified
service
and whose salaries shall be set by the director of the department of
administration,
pursuant
to the provisions of section 36-4-16.
(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 his or her 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 his or her license, or a copy of their
license, as
provided
in the rules and regulations of the committee;
(4) Confer regularly as necessary or desirable, and not less than once each
month, nine
(9)
times per year, 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 he or she 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 revenues
estimating
conference; at the end of each fiscal year the director shall submit an annual
report
based
upon an accrual system of accounting which 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;
(9) Implement the creation and sale of commercial advertising space on lottery
tickets as
authorized
by section 42-61-4 of this chapter 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 location 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 section 42-61-15; and
(11) [Effective until June 30, 2006.]Notwithstanding any general law, public
law, or
regulation
to the contrary, implement, without division approval, changes in the
structures of the
following
lottery games: Powerball, Keno and Hot Trax.
SECTION 2.
Section 42-61-3 of the General Laws in Chapter 42-61 entitled "State
Lottery" is hereby amended to read as
follows:
42-61-3.
Appointment of director of lotteries. -- The lotteries shall be under
the
immediate
supervision and direction of a director, who shall be a qualified person to
administer
an
enterprise of the nature of a lottery. The director shall be appointed by the
governor to a five
(5)
year term with the advice and consent
of the senate. The appointment shall be reviewed or
vetted by
the Permanent Joint Committee on State Lottery according to Article 6 Section
15 of
the
Rhode Island Constitution. The director shall serve until his or her successor
is appointed and
qualified.
Any vacancy occurring in the office of the director shall be filled in the same
manner as
the
original appointment. Pursuant to section 42-6-4, in the case of a vacancy
while the senate is
not in
session, the governor shall appoint a director to hold the office until the
next session
thereof;
provided, that no person should serve in such a position for more than three
(3)
legislative
days after the senate convenes unless that person's name shall have been
submitted to
the
senate for its approval. The director shall devote his or her entire time and
attention to the
duties
of his or her office and shall not be engaged in any other profession or
occupation. He or
she
shall receive any salary that the director of the department of administration
shall determine
and
shall be in the unclassified service.
The director of lotteries shall be removable by the governor, pursuant to the
provisions
of
section 36-1-7 and for cause only, and removal solely for partisan or personal
reasons
unrelated
to capacity or fitness for the office shall be unlawful.
SECTION
3. This act shall take effect upon passage.
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LC00062
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