SLS 12RS-646 ORIGINAL Page 1 of 3 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. 448 BY SENATOR CROWE MENTAL HEALTH. Prohibits the Louisiana Lottery Corporation from advertising and provides that monies which were previously allocated to advertising the lottery be appropriated to pay for the treatment of addiction to gambling. (7/1/12) AN ACT1 To amend and reenact R.S. 47:9002(3), 9029(A)(3), and 9060(A) and to enact R.S.2 47:9029(E), relative to the Louisiana Lottery Corporation; to prohibit certain3 expenditures; to prohibit advertising by the Louisiana Lottery Corporation; to4 provide for certain expenditures; to provide relative to addiction to gambling; and5 to provide for related matters.6 Be it enacted by the Legislature of Louisiana:7 Section 1. R.S. 47:9002(3), 9029(A)(3), and 9060(A) are hereby amended and8 reenacted and R.S. 47:9029(E) is hereby enacted to read as follows: 9 §9002. Definitions 10 As used in this Subtitle, the following words and phrases shall have the11 following meanings unless the context clearly requires otherwise: 12 * * *13 (3) "Major procurement" means any item, product, or service in the amount14 of one hundred thousand dollars or more, including but not limited to major15 advertising contracts, annuity contracts, prize products, and services unique to the16 Louisiana lottery, but not including materials, supplies, equipment, and services17 SB NO. 448 SLS 12RS-646 ORIGINAL Page 2 of 3 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. common to the ordinary operations of a corporation.1 * * *2 §9029. Deposit of revenues; expenditures and investments authorized; transfer of3 revenues to state treasury; dedication and use of proceeds;4 corporation operating account; audit of corporation books and5 records; audits6 A. * * *7 (3) Within twenty days following the close of each calendar month, the8 corporation shall transfer to the Lottery Proceeds Fund in the state treasury the9 amount of net revenues which the corporation determines are surplus to its needs.10 Net revenues or proceeds shall be determined by deducting from gross revenues the11 payment costs incurred or estimated to be incurred in the operation and12 administration of the lottery. This shall include the expenses of the corporation and13 the costs resulting from any contract or contracts entered into for promotional,14 advertising, or operational services or for the purchase or lease of lottery equipment15 and materials, fixed capital outlays, and the payment of prizes to the holders of16 winning tickets. After the first year of operation the corporation shall transfer each17 year not less than thirty-five percent of gross revenues to the state treasury.18 * * *19 E.(1) For the fiscal year beginning July 1, 2012 and ending June 30,20 2013, and for each fiscal year thereafter, the Louisiana Lottery Corporation21 shall not enter into any contracts for advertising nor expend any monies for22 advertising.23 (2) For the fiscal year beginning July 1, 2012 and ending June 30, 2013,24 and each fiscal year thereafter, the amount which was spent on advertising by25 the Louisiana Lottery Corporation in the fiscal year beginning July 1, 2011 and26 ending June 30, 2012, shall be paid into the state treasury and shall be27 appropriated to the Department of Health and Hospitals for the treatment of28 addiction to gambling.29 SB NO. 448 SLS 12RS-646 ORIGINAL Page 3 of 3 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. §9060. Purchase, lease, or lease-purchase of goods or services; investigation of1 prospective vendors; disclosure requirements; prohibited contracts,2 exceptions; vendor's performance bond, letter of credit or deposit of3 security; liquidated damages; laws governing contracts4 A. The corporation may purchase, lease, or lease-purchase such goods or5 services as are necessary for effectuating the purposes of this Subtitle. Major6 procurements which are leases, purchases, and lease-purchases shall be reported to7 the Joint Legislative Committee on the Budget as required by this Subtitle. The8 corporation shall not contract with any person or entity for the total operation and9 administration of the state lottery, but it may make procurements which integrate10 functions such as lottery game design, lottery ticket distribution to retailers , and11 supply of goods and services, and advertising. In all procurement decisions, the12 corporation shall take into account the particularly sensitive nature of the state lottery13 and shall act to promote and ensure security, honesty, fairness, and integrity in the14 operation and administration of the lottery and the objectives of raising net proceeds15 for the benefit of the public.16 Section 2. This Act shall become effective on July 1, 2012.17 The original instrument and the following digest, which constitutes no part of the legislative instrument, were prepared by Carla S. Roberts. DIGEST Present law permits the La. Lottery Corporation to make expenditures for advertising the lottery. Proposed law prohibits the La. Lottery Corporation from purchasing advertising or entering into any advertising contracts beginning in FY 2012-2013 and each fiscal year thereafter. Proposed law provides that, for the FY 2012-2013 and each year thereafter, the amount which was spent on advertising by the La. Lottery Corporation in FY 2011-2012 will be paid into the state treasury and shall be appropriated to the Department of Health and Hospitals for the treatment of addiction to gambling. Effective July 1, 2012. (Amends R.S. 47:9002(3), 9029(A)(3), and 9060(A); adds R.S. 47:9029(E))