Chapter 252

2010 -- S 2960 AS AMENDED

Enacted 07/01/10

 

A N A C T

RELATING TO LOTTERY

 

     Introduced By: Senator Maryellen Goodwin

     Date Introduced: June 02, 2010

 

It is enacted by the General Assembly as follows:

 

     SECTION 1. Section 11-19-35 of the General Laws in Chapter 11-19 entitled "Gambling

and Lotteries" is hereby amended to read as follows:

 

     11-19-35. Pull-tab lottery tickets. -- (a) The Rhode Island lottery commission is

empowered to sell and regulate the sale of pull-tab lottery tickets to religious, fraternal, civic,

educational, veterans', or charitable organizations. The commission lottery shall determine,

consistent with this section, those organizations that are authorized to sell pull-tab lottery tickets.

As part of such determination, the Rhode Island lottery shall require criminal background checks

of the applicant and any individual the lottery deems appropriate and said individuals shall

apply to the bureau of criminal investigation of the Rhode Island state police or the Rhode Island

department of the attorney general for a national criminal records check with fingerprinting. The

individual whose criminal records check is being conducted shall be responsible for the payment

of the costs of said criminal records check. The Rhode Island state police or the Rhode Island

department of attorney general, as applicable, shall send the results of such criminal check to the

Rhode Island lottery. Once said results are sent to and received by the Rhode Island Lottery, the

Rhode Island state police and the Rhode Island department of attorney general shall promptly

destroy said fingerprint record(s). On or before February 1, 2011, the agency shall adopt rules and

regulations establishing criteria to be used in determining whether based upon a criminal records

check an application will be approved.

      (b) The lottery shall insure that the pull tab lottery tickets to be distributed are secured

for the purposes under which they are to be sold in terms of concealing the result of the tickets

until the time that they are sold to the general public. Consistent with this section, those

organizations authorized to sell the tickets are authorized to retain net profits as shall have been

provided for by the commission.

      (b)(c) Notwithstanding any other section of the general laws to the contrary, pull-tab

lottery tickets authorized by this section are declared to be legal.

 

     SECTION 2. Section 41-1-1 of the General Laws in Chapter 41-1 entitled "Division of

Racing and Athletics" is hereby amended to read as follows:

 

     41-1-1. Division of racing and athletics -- Duties. -- Within the department of business

regulation there shall be a division of racing and athletics. The division shall supervise the

enforcement of all laws relating to the regulation and control of racing and athletics, and may in

the first instance make decisions and issue orders, subject to appeal to the racing and athletics

hearing board. The division shall exercise all powers and duties prescribed by chapters 3, 3.1, 4,

5, 7, and 11 and 7 of this title, and all other acts relative to the regulation and supervision of horse

racing, dog racing, and athletics, heretofore performed by the commission on horse racing and

athletics. The division shall comply with RI general laws section 42-14-14 in the conduct of any

investigation related to any license application, permit and/or registration related to Chapters 3,

3.1, 4, 7 and 11 of this title. The division may comply with RI general laws section 42-14-14 in

the conduct of any investigation related to any license application, permit and/or registration

related to chapters 5 and 5.2 of this title. Such investigation shall require the applicant to apply to

the bureau of criminal identification of the Rhode Island state police or the Rhode Island

department of the attorney general for a nationwide criminal records check with fingerprinting.

The applicant shall be responsible for payment of the costs of said criminal records check. The

Rhode Island state police or the Rhode Island department of the attorney general, as applicable,

shall send the results of such criminal records check to the division. Once said results are sent to

and received by the Rhode Island Lottery, the Rhode Island state police and the Rhode Island

department of attorney general shall promptly destroy said fingerprint record(s). On or before

February 1, 2011, the agency shall adopt rules and regulations establishing criteria to be used in

determining whether based upon a criminal records check an application will be approved.

 

     SECTION 3. Section 42-61-5 of the General Laws in Chapter 42-61 entitled "State

Lottery" is hereby amended to read as follows:

 

     42-61-5. Sales agents. -- (a) For the purpose of this chapter, the term "person" shall be

construed to mean and include an individual, association, partnership, corporation, trust, estate,

company, receiver, trustee, referee, or other person acting in a fiduciary or representative

capacity, whether appointed by a court or otherwise, and any combination of individuals.

"Person" shall be construed to mean all departments, committees, commissions, agencies, and

instrumentalities of the state, including counties and municipalities and agencies and

instrumentalities of the state.

      (b) (1) The director of lotteries may license any person as a lottery sales agent as

provided in this chapter. No license shall be issued to any person to engage in the sale of lottery

tickets as his or her sole occupation or business.

     (2) As part of its investigation as to whether to issue a lottery sales agent license, the

Rhode Island lottery shall require criminal background checks of the applicant for a retail sales

agent license as it deems appropriate and said individuals shall apply to the bureau of criminal

investigation of the Rhode Island state police or the Rhode Island department of the attorney

general for a national criminal records check with fingerprinting. The applicant whose criminal

records check is being conducted shall be responsible for the payment of the costs of said

criminal records check. The Rhode Island state police or the Rhode Island department of attorney

general, as applicable, shall send the results of such criminal records check to the Rhode Island

lottery. Once said results are sent to and received by the Rhode Island Lottery, the Rhode Island

state police and the Rhode Island department of attorney general shall promptly destroy said

fingerprint record(s). On or before February 1, 2011, the agency shall adopt rules and regulations

establishing criteria to be used in determining whether based upon a criminal records check an

application will be approved.

      (c) Before issuing any license to a lottery sales agent the director shall consider:

      (1) The financial responsibility and security of the person and his or her business or

activity;

      (2) The accessibility of his or her place of business or activity to the public;

      (3) The sufficiency of existing licensed agents to serve the public interest;

      (4) The volume of expected sales by the applicant;

      (5) Any other factors pertaining to the public interest, convenience or trust.

      (d) The director shall refuse to grant or shall suspend, pending a hearing before the

division, or recommend a revocation of a license if the applicant or licensee:

      (1) Has been convicted of a felony, or any crime involving moral turpitude;

      (2) Has been engaging in gambling as a significant source of income;

      (3) Has been convicted of violating any gambling statutes;

      (4) Has been convicted of fraud or misrepresentation in any connection;

      (5) Has been found to have violated any rule, regulation, or order of the state lottery

division.

      The license of an agent shall be suspended by the director for any charge which may

result in a conviction for conduct prescribed in subdivisions (d)(1) -- (d)(5); which suspension

shall be effective until a final judicial determination.

      (e) The director shall refuse to grant, or shall suspend, pending a hearing before the

division, or recommend revocation of a license if the applicant or licensee is a corporation:

      (1) Any of whose directors, officers, or controlling shareholders have been found guilty

of any of the activities specified in subsection (d);

      (2) In which it appears to the director of lotteries that due to the experience, character, or

general fitness of any director, officer, or controlling shareholder, the granting of a license as a

lottery sales agent would be inconsistent with the public interest, convenience, or trust;

      (3) Not the owner or lessee of the business at which it will conduct a lottery sales agency

pursuant to the license applied for, or that any person, firm, association, or corporation other than

the applicant shares or will share in the profits of the applicant, other than receiving dividends as

a shareholder, or will participate in the management of the affairs of the applicant.

      (f) Every holder of a license as a lottery sales agent shall renew the license annually

pursuant to the rules and regulations of the division. Licensees shall pay to the division a fee to be

determined by the director upon receipt or renewal of a license.

      (g) Whenever requested by the director, the division of criminal identification of the

department of the attorney general, the superintendent of state police, any superintendent or chief

of police or sergeant of any city or town, shall furnish all information on convictions, arrests and

present investigations concerning any person who is an applicant for a license or who is a licensee

of the state lottery.

      (h) Notwithstanding any other provision of law, any person licensed as provided in this

chapter is authorized and empowered to act as a lottery sales agent.

      (i) Every licensed sales agent authorized pursuant to this section and every licensed

video lottery retailer authorized by chapter 61.2 of this title shall keep conspicuously posted on

his or her premises the name and telephone number of a council on problem gambling recognized

by an appropriate authority within state government or within the professional field of addiction

disorders and a statement of its availability to offer assistance. The lottery division shall supply

each licensee with the required notice.

 

     SECTION 4. Section 42-61.2-3 of the General Laws in Chapter 42-61.2 entitled "Video

Lottery Terminal" is hereby amended to read as follows:

 

     42-61.2-3. Additional powers and duties of the director. -- In addition to the powers

and duties of the state lottery director under section 42-61-4, the director shall promulgate

reasonable rules and regulations relating to video lottery games and to make recommendations

and set policy for these games. These rules and regulations and shall include, but not be limited

to:

      (1) The division shall license technology providers capable of interfacing with a central

communications system controlled by the division. In making its licensing decision, the division

shall select providers based on the following factors: providers experienced in performing

comparable projects, financial stability, technical and management abilities, the quality of the

product and service capabilities, likelihood of timely performance, maximum revenue generation,

its ability to pass a law enforcement background investigation, and any other factors found to be

relevant to performance. As part of its investigation as to whether to issue a license hereunder, the

Rhode Island lottery shall require criminal background checks of individuals as it deems

appropriate and said individuals shall apply to the bureau of criminal investigation of the Rhode

Island state police or the Rhode Island department of the attorney general for a national criminal

records check with fingerprinting. The applicant whose criminal records check is being conducted

shall be responsible for the payment of the costs of said criminal records check. The Rhode Island

state police or the Rhode Island department of attorney general, as applicable, shall send the

results of such criminal records check to the Rhode Island lottery. Once said results are sent to

and received by the Rhode Island Lottery, the Rhode Island state police and the Rhode Island

department of attorney general shall promptly destroy said fingerprint record(s). On or before

February 1, 2011, the agency shall adopt rules and regulations establishing criteria to be used in

determining whether based upon a criminal records check an application will be approved.

     The award of a license to technology providers under this section shall satisfy the

requirements of chapter 2 of title 37. An outside independent testing laboratory may be utilized

by the division at the expense of the individual provider;

      (2) Accounting procedures for determining the net terminal income from lottery video

terminals, and unclaimed prizes and credits;

      (3) The type of video lottery games to be conducted;

      (4) The price to play each game and the prizes or credits to be awarded;

      (5) Financial reporting procedures for licensed video lottery retailers and control

procedures in the event that any of these retailers should become insolvent;

      (6) Insurance and bonding by:

      (i) Licensed video lottery retailers; and

      (ii) Technology provider;

      (7) The licensing of licensed video lottery retailers;

      (8) The contracting with technology providers;

      (9) All video lottery machines shall be linked under a central communications system to

provide auditing program information as approved by the division. The communications system

approved by the division may not limit participation to only one manufacturer of video lottery

machines by either cost of implementing the necessary program modifications to communicate or

the inability to communicate with the central communication system;

      (10) Establishment of information system, operating procedures, reporting and

accounting criteria in order to comply with the provisions of section 42-61.2-12; and

      (11) Any other matters necessary for video lottery terminals or for the convenience of

the public.

 

     SECTION 5. This act shall take effect upon passage.

     

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LC02838

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