SLS 12RS-764 REENGROSSED Page 1 of 6 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. Regular Session, 2012 SENATE BILL NO. 389 BY SENATOR MARTINY GOVERNMENTAL REGULATIONS. Requires the attorney general to regulate sweepstakes promotions and provides certain requirements and procedures. (8/1/12) AN ACT1 To enact R.S. 51:1726 and 1727, relative to sweepstakes promotions; to provide for the2 regulation of sweepstakes promotions by the attorney general; to provide for3 definitions; to provide for the display of sweepstakes promotions winners; to provide4 for certain terms, conditions, and procedures; and to provide for related matters.5 Be it enacted by the Legislature of Louisiana:6 Section 1. R.S. 51:1726 and 1727 are hereby enacted to read as follows: 7 §1726. Sweepstakes promotions8 A. Except as otherwise provided in this Chapter, the winner of any9 sweepstakes promotion shall be revealed in only one of the following manners:10 (1) Through posting on a printed list.11 (2) Through the use of scratch-off tickets or cards.12 (3) Through the use of pull-tab tickets or cards.13 (4) By contacting the winner in writing or through telephone14 communication.15 B. For the purposes of this Section, the following words and phrases16 shall have the following meaning:17 SB NO. 389 SLS 12RS-764 REENGROSSED Page 2 of 6 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. (1) "Contest" means any activity that involves competition between one1 or more persons.2 (2) "Game" means any activity undertaken or regarded as a contest,3 whether or not such contest involves an element or degree of chance.4 (3) "Pull-tab ticket" or "pull-tab card" means any pre-designated ticket5 or card that has its face covered to conceal whether a person has won a prize.6 (4) "Scratch-off ticket" or "scratch-off card" means any preprinted7 ticket or card that, after a latex or other covering is removed, indicates8 immediately whether a person has won a prize.9 (5) "Sweepstakes promotion" means any game, contest, or other10 offering where entry into the game, contest, or other offering, whether allowed11 gratuitously or through a bargained-for exchange, is offered in connection with12 the promoting or advertising of any one of the following:13 (a) A business or an extension thereof.14 (b) A product.15 (c) An investment opportunity.16 (d) A charitable contribution.17 (e) A service.18 C. The Louisiana Department of Justice, office of attorney general, shall19 regulate sweepstakes promotions provided for in this Section and the electronic20 display of sweepstakes winners as provided for in R.S. 51:1727.21 D. The provisions of this Section shall not apply to entities holding22 sweepstakes or contests to which only the entities' employees may enter.23 E. The provisions of this Section shall not apply to persons or entities24 licensed or permitted pursuant to the provisions of Titles 4, 26, and 27 of the25 Louisiana Revised Statutes of 1950, as it pertains to those gaming or other26 activities for which they are licensed or permitted.27 §1727. Electronic display of sweepstakes winners28 A. Except as otherwise provided in this Chapter, a computer or29 SB NO. 389 SLS 12RS-764 REENGROSSED Page 3 of 6 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. computer system that is used as part of a sweepstakes promotion shall be used1 only to allow a person to enter their name and contact information for the2 purpose of entering into the sweepstakes promotion and to display the following3 information:4 (1) Rules that govern the sweepstakes promotion.5 (2) Identity and contact information of the persons providing,6 conducting, and offering the sweepstakes promotion.7 (3) Any prize that may be won during the sweepstakes promotion and8 the monetary value of such prize.9 (4) Odds of winning a prize in the sweepstakes promotion.10 (5) Laws that govern the operation of sweepstakes promotions.11 (6) Any jurisdiction that does not allow the sweepstakes promotion.12 (7) The name or names of the sweepstakes promotion winner, after such13 winner has been revealed in accordance with the provisions of R.S. 51:1726.14 (8) The prize that was won by the winner and the monetary value of15 such prize.16 B. At no time shall a person be required to or offered an opportunity to17 enter into any monetary transaction through a computer, computer system, or18 any other electronic system, for the purposes of entering into or winning a19 sweepstakes promotion.20 C. At no time shall the revealing of a sweepstakes promotion winner, the21 revealing of a sweepstakes prize, or the revealing of a sweepstakes prize value22 be linked to or associated with the play or simulation of play of an electronic23 game or similar contest on a computer, computer system, or any other24 electronic system.25 D. For the purposes of this Section, the following words and phrases26 shall have the following meanings:27 (1) "Computer" means any electronic, magnetic, optical, or other28 high-speed data processing device or system performing logical, arithmetic, and29 SB NO. 389 SLS 12RS-764 REENGROSSED Page 4 of 6 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. storage functions, and includes any property, data storage facility, or1 communications facility directly related to or operating in conjunction with2 such device or system. "Computer" shall not include an automated typewriter3 or typesetter, a machine designed solely for word processing, portable4 hand-held calculator, nor any other device which may contain components5 similar to those in computers but in which the components have the sole6 function of controlling the device for the single purpose for which the device is7 intended.8 (2) "Computer system" means any set of functionally related, connected9 or unconnected, computer equipment, devices, or computer software.10 (3) "Electronic game" means a form of interactive multimedia used11 primarily for entertainment, which includes but is not limited to any interactive12 multimedia that consists of moveable images displayed on a computer screen13 that may be controlled, manipulated, or set into motion by some action or14 activity of the person playing the game.15 (4) "Monetary transaction" means a transaction where a person16 provides cash or credit to another person in exchange for something of value or17 the opportunity to receive something of value.18 (5) "Multimedia" means any application or process that can combine19 text, graphics, video, or sound into an integrated package.20 E. The provisions of this Section shall not apply to entities holding21 sweepstakes or contests to which only the entities' employees may enter.22 F. The provisions of this Section shall not apply to persons or entities23 licensed or permitted pursuant to the provisions of Titles 4, 26, and 27 of the24 Louisiana Revised Statutes of 1950, as it might pertain to those gaming or other25 activities for which they are licensed or permitted.26 SB NO. 389 SLS 12RS-764 REENGROSSED Page 5 of 6 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. The original instrument was prepared by Michelle Ducharme. The following digest, which does not constitute a part of the legislative instrument, was prepared by McHenry Lee. DIGEST Martiny (SB 389) Proposed law requires the La. Department of Justice, office of attorney general, to regulate sweepstakes promotions. Proposed law regulates the manner in which the winner of any sweepstakes promotion shall be revealed in any one of the following manners: 1. The posting of the winner's name on a printed list. 2. Through the use of scratch-off tickets or cards. 3. Through the use of pull-tab tickets or cards. 4. By contacting the winner in writing or through telephone communication. Proposed law provides that except as otherwise provided by law, computers or computer systems that are used as part of a sweepstakes promotion shall only be used to allow a person to enter their name and contact information for the purpose of entering into the sweepstakes promotion and to display certain information. Proposed law prohibits a person from being required or offered the opportunity to enter into any monetary transaction through a computer, computer system, or any other electronic system, for the purpose of entering into a sweepstakes promotion or winning a sweepstakes promotion. Proposed law provides that at no time shall the revealing of a sweepstakes promotion winner, the revealing of a sweepstakes prize, or the revealing of a sweepstakes prize value be linked to or associated with the play or simulation of play of an electronic game or similar contest on a computer, computer system, or any other electronic system. Proposed law does not apply to any persons or entities licensed or permitted pursuant to the provisions of Titles 4, 26, and 27 of the Louisiana Revised Statutes of 1950, as it might pertain to those gaming activities for which they are licensed or permitted. Proposed law does not apply to entities holding sweepstakes or contests to which only the entities' employees may enter. Proposed law defines the following terms:"sweepstakes promotion", "scratch-off ticket" or "scratch-off card", "pull-tab ticket" or "pull-tab card", "game", "contest", "computer", "computer system", "electronic game", "monetary transaction", and "multimedia". Effective August 1, 2012. (Adds R.S. 51:1726 and 1727) SB NO. 389 SLS 12RS-764 REENGROSSED Page 6 of 6 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. Summary of Amendments Adopted by Senate Committee Amendments Proposed by Senate Committee on Commerce, Consumer Protection, and International Affairs to the original bill 1. Added that proposed law does not apply to entities holding sweepstakes or contests to which only the entities' employees may enter. Senate Floor Amendments to engrossed bill 1. Provides exemptions for entities holding sweepstakes or contests in which only the entities' employees may enter with respect to sweepstakes promotions. 2. Provides certain exemptions for licensed or permitted gaming entities with respect to sweepstakes promotions. 3. Technical amendments.