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Massachusetts House Bill H255

Massachusetts 2023-2024 Regular Session

Massachusetts House Bill H255 Compare Versions

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22 HOUSE DOCKET, NO. 3034 FILED ON: 1/19/2023
33 HOUSE . . . . . . . . . . . . . . . No. 255
44 The Commonwealth of Massachusetts
55 _________________
66 PRESENTED BY:
77 Daniel Cahill
88 _________________
99 To the Honorable Senate and House of Representatives of the Commonwealth of Massachusetts in General
1010 Court assembled:
1111 The undersigned legislators and/or citizens respectfully petition for the adoption of the accompanying bill:
1212 An Act relative to establishing an online lottery.
1313 _______________
1414 PETITION OF:
1515 NAME:DISTRICT/ADDRESS :DATE ADDED:Daniel Cahill10th Essex1/19/2023 1 of 14
1616 HOUSE DOCKET, NO. 3034 FILED ON: 1/19/2023
1717 HOUSE . . . . . . . . . . . . . . . No. 255
1818 By Representative Cahill of Lynn, a petition (accompanied by bill, House, No. 255) of Daniel
1919 Cahill for legislation to establish an online lottery. Consumer Protection and Professional
2020 Licensure.
2121 The Commonwealth of Massachusetts
2222 _______________
2323 In the One Hundred and Ninety-Third General Court
2424 (2023-2024)
2525 _______________
2626 An Act relative to establishing an online lottery.
2727 Be it enacted by the Senate and House of Representatives in General Court assembled, and by the authority
2828 of the same, as follows:
2929 1 SECTION 4A. Chapter 10 of the General Laws is hereby amended by striking out section
3030 2 24, as so appearing, and inserting in place thereof the following section:-
3131 3 Section 24. (a) The commission is hereby authorized to conduct a state lottery and shall
3232 4 determine: (i) the types of lotteries to be conducted; (ii) the prices of tickets or shares in
3333 5the
3434 6 lottery; (iii) the number and sizes of the prizes on the winning tickets or shares; (iv) the
3535 7manner
3636 8 of selecting the winning tickets or shares; (v) the manner of payment of prizes to the
3737 9holders of 2 of 14
3838 10 winning tickets or shares; (vi) the frequency of the drawings or selections of winning
3939 11tickets or
4040 12 shares; (vii) the types of locations at which tickets or shares may be sold; (viii) the
4141 13method to be
4242 14 used in selling tickets or shares; (ix) the licensing of agents to sell tickets or shares;
4343 15provided,
4444 16 however, that no person under the age of 18 shall be licensed as an agent; (x) the manner
4545 17and
4646 18 amount of compensation, if any, to be paid licensed sales agents; provided, however, that
4747 19the
4848 20 amount of compensation, if any, to be paid to licensed sales agents as a commission
4949 21pursuant to
5050 22 this section shall be calculated on the total face value of each ticket or share sold and not
5151 23on any
5252 24 discounted price of any such ticket or share sold; provided further, that the commission
5353 25shall
5454 26 authorize licensed sales agents to facilitate point of sale transactions using a debit card;
5555 27and
5656 28 provided further, that said commission shall prohibit point of sale transactions using
5757 29credit cards 3 of 14
5858 30 as defined in section 1 of chapter 140D and that point of sale transactions under this
5959 31section shall
6060 32 be subject to the restrictions pursuant to subsection (b) of section 5I of chapter 18; and
6161 33(xi) such
6262 34 other matters necessary or desirable for the efficient and economical operation and
6363 35 administration of the lottery and for the convenience of the purchasers of tickets or shares
6464 36and
6565 37 the holders of winning tickets or shares. The commission is authorized to operate the
6666 38daily
6767 39 numbers game 7 days a week. Each physical state lottery ticket or share shall have
6868 40imprinted
6969 41 thereon the state seal and a serial number.
7070 42 (b) The commission may establish, and from time to time revise, such rules and
7171 43 regulations as it deems necessary or desirable and shall file the same with the office of
7272 44the state
7373 45 secretary; provided, however, that the commission shall establish rules and regulations
7474 46for
7575 47 lotteries conducted online, over the internet, through the use of a mobile application or
7676 48through 4 of 14
7777 49 any other means that shall, at a minimum:
7878 50 (i) require age verification measures to be reasonably designed to block access to and
7979 51 prevent sales of lottery tickets, games or shares online, over the internet, through the use
8080 52of a
8181 53 mobile application or through any other means to persons under the age of 18;
8282 54 (ii) limit sales of lottery tickets, games or shares online, over the internet, through the use
8383 55 of a mobile application or through any other means to transactions initiated and received,
8484 56or
8585 57 otherwise made, within the commonwealth;
8686 58 (iii) allow any player to voluntarily prohibit or otherwise exclude themself from
8787 59 purchasing a lottery ticket, game or share online, over the internet, through the use of a
8888 60mobile
8989 61 application or through any other means;
9090 62 (iv) establish maximum limits for account deposits and transactions of lottery tickets,
9191 63 games or shares conducted online, over the internet, through the use of a mobile
9292 64application or
9393 65 through any other means and allow players to reduce their own deposit or transaction
9494 66limit at any
9595 67 time; 5 of 14
9696 68 (v) clarify that any cash deposited in a lottery account belongs solely to the owner of the
9797 69 account and may be withdrawn by the owner at any time;
9898 70 (vi) require the commission to implement promotional activities to encourage the
9999 71 purchase of lottery tickets, games or shares through licensed sales agents including, but
100100 72not
101101 73 limited to, the sale of gift certificates as defined in section 1 of chapter 255D for
102102 74 lottery sales through licensed sales agents.
103103 75 (c) Notwithstanding any general or special law to the contrary, the name, address,
104104 76 transaction history, account balance or other personal or identifying information of an
105105 77individual
106106 78 who purchases lottery tickets, games or shares online, over the internet, through the use
107107 79of a
108108 80 mobile application or through any other means shall not be deemed public records of the
109109 81 commission for the purposes of section 10 of chapter 66; provided, however, that this
110110 82section
111111 83 shall not prohibit the commission from maintaining, using or sharing such information in
112112 84the
113113 85 course of an investigation by law enforcement or in compliance with sections 28A or
114114 8628B. 6 of 14
115115 87 (d) The commission shall advise and make recommendations to the director regarding the
116116 88 operation and administration of the lottery. The commission shall report monthly to the
117117 89 governor, the attorney general and the general court, the total lottery revenues, prize
118118 90 disbursements and other expenses for the preceding month and shall make an annual
119119 91 independently audited financial report to the same which shall include a full and
120120 92complete
121121 93 statement of lottery revenues, prize disbursements and other expenses, including such
122122 94 recommendations as it may deem necessary or advisable, which shall be made available
123123 95 electronically to the general public not later than the earliest date established for reports
124124 96in
125125 97 section 12 of chapter 7A. The commission shall report immediately to the governor and
126126 98the
127127 99 general court any matters which require immediate changes in the laws of the
128128 100commonwealth in
129129 101 order to prevent abuses and evasions of the lottery law or rules and regulations
130130 102promulgated
131131 103 thereunder or to rectify undesirable conditions in connection with the administration or
132132 104operation
133133 105 of the state lottery. 7 of 14
134134 106 (e) The commission is authorized to carry on a continuous study and investigation of the
135135 107 lottery throughout the commonwealth in order to: (i) ascertain any defects in the state
136136 108lottery law
137137 109 or in the rules and regulations issued thereunder whereby any abuse in the administration
138138 110and
139139 111 operation of the lottery or any evasion of said law or said rules and regulations may arise
140140 112or be
141141 113 practiced; (ii) formulate recommendations for changes in said law and the rules and
142142 114regulations
143143 115 promulgated thereunder to prevent such abuses and evasions; and (iii) guard against the
144144 116use of
145145 117 said law and rules and regulations issued thereunder as a cloak for the carrying on of
146146 118organized
147147 119 gambling and crime.
148148 120 (f) The commission shall make a continuous study and investigation of: (i) the operation
149149 121 and administration of similar laws in other states or countries; (ii) any literature on the
150150 122subject
151151 123 which from time to time may be published or available; (iii) any federal laws which may
152152 124affect 8 of 14
153153 125 the operation of the lottery; and (iv) the reaction of citizens of the commonwealth to
154154 126existing and
155155 127 potential features of the lottery with a view to recommending or effecting changes that
156156 128will tend
157157 129 to better serve and implement the purposes of the state lottery law.
158158 130 (g)(i) There is hereby established within the commission a lottery advisory board. The
159159 131lottery advisory board shall be comprised, at minimum, of the following members: the director of
160160 132the lottery commission, or their designee; a representative from the New England Convenience
161161 133Stores and Energy Marketers Association, Inc.; a representative from the Retailers Association of
162162 134Massachusetts, Inc.; a representative from the Massachusetts Restaurants Association, two
163163 135representatives operating as licensed sales agents in a brick and mortar retail store and appointed
164164 136by the director of the commission; two representatives appointed by the Massachusetts
165165 137Municipal Association; a representative from the Massachusetts Council on Gaming and Health;
166166 138a representative from the Massachusetts Department of Public Health’s Office of Problem
167167 139Gambling Services; and any other representative the commission deems is necessary to advance
168168 140the goals of the advisory board. All members of the lottery advisory board shall serve at the will
169169 141of their appointing authority.
170170 142 (ii) The lottery advisory board shall advise and assist the commission in the development
171171 143 and implementation of the lottery ecosystem comprised of traditional brick and mortar
172172 144lotteries, 9 of 14
173173 145 lotteries conducted online, over the internet and through the use of mobile phone
174174 146applications.
175175 147 The board shall review all processing fees associated with point of sale transactions using
176176 148debit
177177 149 cards and make recommendation on said processing fees and the implementation of use
178178 150of debit
179179 151 cards.
180180 152 (iii) The lottery advisory board shall meet monthly during their first year of
181181 153implementation and
182182 154 thereafter at the discretion of the board, except that the board shall meet at a minimum
183183 155quarterly after
184184 156 its first year to advise and assist the commission in lottery modernization and to review
185185 157actions taken by the commission with respect to online lottery development and implementation
186186 158and to make advisory recommendations, as necessary. Annually, at the first meeting of the
187187 159advisory board, members of the advisory board shall elect a chair. A majority of members of the
188188 160advisory board shall be present for actions to be taken.
189189 161 (h) The concurrence of the chairman and not less than 2 other members of the
190190 162 commission shall be required for all official actions of the commission. A copy of the
191191 163minutes of 10 of 14
192192 164 each meeting of the commission, including any rules and regulations adopted by the
193193 165commission
194194 166 or any amendments thereof, shall be forthwith transmitted, by and under the certification
195195 167of the
196196 168 secretary thereof, to the governor.
197197 169 (i) The commission shall have the power to issue subpoenas to compel the attendance of
198198 170 witnesses and the production of documents, papers, books, records and other evidence
199199 171before it
200200 172 in any matter over which it has jurisdiction, control or supervision. The commission shall
201201 173have
202202 174 the power to administer oaths and affirmations to persons whose testimony is required.
203203 175 SECTION 4B. Section 24A of said chapter 10, as so appearing, is hereby amended by
204204 176 striking out subsection (a) and inserting in place thereof the following subsection:-
205205 177 (a) For the purposes of this section, “group agreement'” shall mean any lottery activity in
206206 178 which the commission participates pursuant to a written agreement between the
207207 179commission, on
208208 180 behalf of the commonwealth, and any state, territory, country or other sovereignty. The
209209 181 commission is hereby authorized to enter into agreements with 1 or more states or other 11 of 14
210210 182 jurisdictions, hereinafter referred to as a group, for the purpose of creating and
211211 183maintaining
212212 184 multi-jurisdictional lottery games, including multi-jurisdictional lottery games to be
213213 185conducted
214214 186 online, over the internet, through the use of a mobile application or through any other
215215 187means;
216216 188 provided, that any such lottery game to be conducted online, over the internet, through
217217 189the use of
218218 190 a mobile application or through any other means has been properly authorized by each
219219 191state or
220220 192 other jurisdiction that is part of the group; provided further, that a group agreement shall
221221 193not
222222 194 include the state lottery games created pursuant to section 24; provided further, that
223223 195nothing in
224224 196 this section and nothing in a group agreement shall authorize the commission to make
225225 197 expenditures that are not consistent with restrictions on expenditures by the commission
226226 198 provided for in any other general or special law. The group shall determine the types of
227227 199lotteries
228228 200 to be conducted, the prices of tickets or shares, the manner of selecting the winning
229229 201tickets or 12 of 14
230230 202 shares, the manner of payment of prizes to the holders of winning tickets or shares and
231231 203the
232232 204 frequency of the drawings or selection of winning tickets or shares. The commission may
233233 205 establish, and from time to time revise, such rules and regulations as it deems necessary
234234 206or
235235 207 desirable to carry out the group agreement and shall file the same with the office of the
236236 208state
237237 209 secretary.
238238 210 SECTION 4C. Said chapter 10, as so appearing, is hereby amended by striking out
239239 211 section 25 and inserting in place thereof the following section:-
240240 212 Section 25. (a) The apportionment of the total revenues accruing from the sale of lottery
241241 213 tickets or shares and from all other sources at the point of sale at a licensed agent shall be
242242 214as follows: (i)
243243 215 the payment of prizes to the holders of winning tickets or shares which in any case shall
244244 216be no less
245245 217 than 45 per cent of the total revenues accruing from the sale of lottery tickets; (ii) the
246246 218payment of
247247 219 costs incurred in the operation and administration of the lottery, including the expenses of
248248 220the 13 of 14
249249 221 commission and the costs resulting from any contract or contracts entered into for
250250 222promotional,
251251 223 advertising or operational services or for the purchase or lease of lottery equipment and
252252 224 materials, that in no case shall exceed 15 per cent of the total revenues accruing from the
253253 225sale of
254254 226 lottery tickets, subject to appropriation; and (iii) the balance shall be used to fund
255255 227budgeted aid to
256256 228 cities and towns as provided in section 18C of chapter 58, subject to appropriation.
257257 229 (b) The apportionment of the total revenues accruing from the sale of lotteries conducted
258258 230 online, over the internet, through the use of a mobile application or through any other
259259 231means as
260260 232 authorized by section 24 except for those enumerated in clause (a) of this section shall be
261261 233as follows: (i) the payment of prizes to the holders of winning tickets or shares; (ii) the payment
262262 234of costs incurred in the operation and administration of such lotteries, including the expenses of
263263 235the commission and the costs resulting from any contract or contracts entered into for
264264 236promotional, advertising or operational services or for the purchase or lease of lottery equipment
265265 237and materials, that in no case shall exceed 15 per cent of the total revenues accruing from the
266266 238sale of lottery tickets, subject to appropriation; and (iii) the balance shall be used to fund
267267 239budgeted aid to cities and towns as provided in section 18C of chapter 58, subject to
268268 240appropriation; provided that, in any fiscal year where the balance used to fund such budgeted aid
269269 241exceeds one-hundred-three per cent of budgeted aid apportioned in the previous year the balance 14 of 14
270270 242exceeding one-hundred-three per cent shall be deposited in an early education and care fund
271271 243administered by the department of early education and care established by section 2 of chapter
272272 24415D.