Massachusetts 2023-2024 Regular Session

Massachusetts Senate Bill S170 Compare Versions

Only one version of the bill is available at this time.

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1	1	1 of 1
2	2	SENATE DOCKET, NO. 1791 FILED ON: 1/19/2023
3	3	SENATE . . . . . . . . . . . . . . No. 170
4	4	The Commonwealth of Massachusetts
5	5	_________________
6	6	PRESENTED BY:
7	7	Paul R. Feeney
8	8	_________________
9	9	To the Honorable Senate and House of Representatives of the Commonwealth of Massachusetts in General
10	10	Court assembled:
11	11	The undersigned legislators and/or citizens respectfully petition for the adoption of the accompanying bill:
12	12	An Act establishing an online lottery.
13	13	_______________
14	14	PETITION OF:
15	15	NAME:DISTRICT/ADDRESS :Paul R. FeeneyBristol and NorfolkDeborah B. Goldberg, Treasurer and
16	16	Receiver General
17	17	Treasurer 1 of 7
18	18	SENATE DOCKET, NO. 1791 FILED ON: 1/19/2023
19	19	SENATE . . . . . . . . . . . . . . No. 170
20	20	By Mr. Feeney, a petition (accompanied by bill, Senate, No. 170) of Paul R. Feeney and Deborah
21	21	B. Goldberg, Treasurer and Receiver General for legislation to establish an online lottery.
22	22	Consumer Protection and Professional Licensure.
23	23	[SIMILAR MATTER FILED IN PREVIOUS SESSION
24	24	SEE SENATE, NO. 203 OF 2021-2022.]
25	25	The Commonwealth of Massachusetts
26	26	_______________
27	27	In the One Hundred and Ninety-Third General Court
28	28	(2023-2024)
29	29	_______________
30	30	An Act establishing an online lottery.
31	31	Be it enacted by the Senate and House of Representatives in General Court assembled, and by the authority
32	32	of the same, as follows:
33	33	1 SECTION 1. Chapter 10 of the General Laws is hereby amended by striking out section
34	34	224, as appearing in the 2020 Official Edition, and inserting in place thereof the following
35	35	3section:-
36	36	4 Section 24. (a) The commission is hereby authorized to conduct a state lottery and shall
37	37	5determine: (i) the types of lottery or lotteries, to be conducted; (ii) the price, or prices, of tickets
38	38	6or shares in the lottery; (iii) the numbers and sizes of the prizes on the winning tickets or shares;
39	39	7(iv) the manner of selecting the winning tickets or shares; (v) the manner of payment of prizes to
40	40	8the holders of winning tickets or shares; (vi) the frequency of the drawings or selections of
41	41	9winning tickets or shares; (vii) the type or types of locations at which tickets or shares may be
42	42	10sold; (viii) the method to be used in selling tickets or shares; (ix) the licensing of agents to sell 2 of 7
43	43	11tickets or shares; provided, however, that no person under the age of eighteen shall be licensed as
44	44	12an agent; (x) the manner and amount of compensation, if any, to be paid licensed sales agents;
45	45	13provided, however, that the amount of compensation, if any, to be paid to licensed sales agents as
46	46	14a commission pursuant to this section shall be calculated on the total face value of each ticket or
47	47	15share sold and not on any discounted price of any such ticket or share sold; and (xi) such other
48	48	16matters necessary or desirable for the efficient and economical operation and administration of
49	49	17the lottery and for the convenience of the purchasers of tickets or shares and the holders of
50	50	18winning tickets or shares. The commission is authorized to operate the daily numbers game
51	51	19seven days a week. Each physical state lottery ticket or share shall have imprinted thereon the
52	52	20state seal and a serial number. The commission may establish, and from time to time revise, such
53	53	21rules and regulations as it deems necessary or desirable and shall file the same with the office of
54	54	22the state secretary.
55	55	23 (b) The commission shall establish rules and regulations for lotteries conducted online,
56	56	24over the internet, through the use of a mobile application or through any other means that shall,
57	57	25at a minimum:
58	58	26 (i) require age verification measures to be reasonably designed to block access to and
59	59	27prevent sales of lottery tickets, games or shares online, over the internet, through the use of a
60	60	28mobile application or through any other means to persons under the age of 18;
61	61	29 (ii) limit sales of lottery tickets, games or shares online, over the internet, through the use
62	62	30of a mobile application or through any other means to transactions initiated and received, or
63	63	31otherwise made, within the commonwealth; 3 of 7
64	64	32 (iii) allow any player to voluntarily prohibit or otherwise exclude themselves from
65	65	33purchasing a lottery ticket, game or share online, over the internet, through the use of a mobile
66	66	34application or through any other means;
67	67	35 (iv) establish maximum limits for account deposits and transactions of lottery tickets,
68	68	36games or shares conducted online, over the internet, through the use of a mobile application or
69	69	37through any other means and allow players to reduce their own deposit or transaction limit at any
70	70	38time;
71	71	39 (v) clarify that money in a lottery account belongs solely to the owner of the account and
72	72	40may be withdrawn by the owner at any time;
73	73	41 (vi) require the commission to implement promotional activities to encourage the
74	74	42purchase of lottery tickets, games or shares through licenses sales agents including, but not
75	75	43limited to, the sale of prepaid gift cards for lottery sales through licensed sales agents; and
76	76	44 (vii) prohibit the purchase or other use of any personal or identifying information of an
77	77	45individual who purchases lottery tickets, game or shares online, over the internet, through the use
78	78	46of a mobile application, or through any other means.
79	79	47 (c) Notwithstanding any general or special law to the contrary, the name, address,
80	80	48transaction history, account balance or other personal or identifying information of an individual
81	81	49who purchases lottery tickets, games or shares online, over the internet, through the use of a
82	82	50mobile application or through any other means shall not be deemed public records of the
83	83	51commission for the purposes of section 10 of chapter 66; provided, however, that this section
84	84	52shall not prohibit the commission from maintaining, using or sharing such information in the 4 of 7
85	85	53course of an investigation by law enforcement or in compliance with sections 28A or 28B of this
86	86	54chapter.
87	87	55 (d) The commission shall advise and make recommendations to the director regarding the
88	88	56operation and administration of the lottery. The commission shall report monthly to the
89	89	57governor, the attorney general and the general court, the total lottery revenues, prize
90	90	58disbursements and other expenses for the preceding month, and shall make an annual
91	91	59independently audited financial report to the same which shall include a full and complete
92	92	60statement of lottery revenues, prize disbursements and other expenses, including such
93	93	61recommendations as it may deem necessary or advisable, which shall be made available
94	94	62electronically to the general public not later than the earliest date established for reports in
95	95	63section 12 of chapter 7A. The commission shall report immediately to the governor and the
96	96	64general court any matters which require immediate changes in the laws of the commonwealth in
97	97	65order to prevent abuses and evasions of the lottery law or rules and regulations promulgated
98	98	66thereunder or to rectify undesirable conditions in connection with the administration or operation
99	99	67of the state lottery.
100	100	68 (e) The commission is authorized to carry on a continuous study and investigation of said
101	101	69lottery throughout the commonwealth in order to: (i) to ascertain any defects in the state lottery
102	102	70law or in the rules and regulations issued thereunder whereby any abuse in the administration
103	103	71and operation of the lottery or any evasion of said law or said rules and regulations may arise or
104	104	72be practiced, (ii) to formulate recommendations for changes in said law and the rules and
105	105	73regulations promulgated thereunder to prevent such abuses and evasions, and (iii) guard against
106	106	74the use of said law and rules and regulations issued thereunder as a cloak for the carrying on of
107	107	75organized gambling and crime. 5 of 7
108	108	76 (f) The commission shall make a continuous study and investigation of the operation and
109	109	77administration of similar laws in other states or countries, of any literature on the subject which
110	110	78from time to time may be published or available, of any federal laws which may affect the
111	111	79operation of the lottery, and of the reaction of citizens of the commonwealth to existing and
112	112	80potential features of the lottery with a view to recommending or effecting changes that will tend
113	113	81to better serve and implement the purposes of the state lottery law.
114	114	82 (g) The concurrence of the chairman and of not less than two other members of the
115	115	83commission shall be required for all official actions of the commission. A copy of the minutes of
116	116	84each meeting of the commission, including any rules and regulations adopted by the commission
117	117	85or any amendments thereof, shall be forthwith transmitted, by and under the certification of the
118	118	86secretary thereof, to the governor.
119	119	87 (h) The commission shall have the power to issue subpoenas to compel the attendance of
120	120	88witnesses and the production of documents, papers, books, records and other evidence before it
121	121	89in any matter over which it has jurisdiction, control or supervision. The commission shall have
122	122	90the power to administer oaths and affirmations to persons whose testimony is required.
123	123	91 SECTION 2. Section 24A of said chapter 10, as so appearing, is hereby amended by
124	124	92striking out subsection (a) and inserting in place thereof the following subsection:-
125	125	93 (a) For the purposes of this section, ''group agreement'' shall mean any lottery activity in
126	126	94which the commission participates pursuant to a written agreement between the commission, on
127	127	95behalf of the commonwealth, and any state, territory, country or other sovereignty. The
128	128	96commission is hereby authorized to enter into agreements with one or more states or other
129	129	97jurisdictions, hereinafter referred to as a group, for the purpose of creating and maintaining 6 of 7
130	130	98multi-jurisdictional lottery games, including multi-jurisdictional lottery games to be conducted
131	131	99online, over the internet, through the use of a mobile application or through any other means;
132	132	100provided, however, that any such lottery game to be conducted online, over the internet, through
133	133	101the use of a mobile application or through any other means has been properly authorized by each
134	134	102state or other jurisdiction that is part of the group; provided, further, that a group agreement shall
135	135	103not include the state lottery games created pursuant to section 24; provided further, that nothing
136	136	104in this section and nothing in a group agreement shall authorize the commission to make
137	137	105expenditures that are not consistent with restrictions on expenditures by the commission
138	138	106provided in any other general or special law. The group shall determine the types of lotteries to
139	139	107be conducted, the prices of tickets or shares, the manner of selecting the winning tickets or
140	140	108shares, the manner of payment of prizes to the holders of winning tickets or shares and the
141	141	109frequency of the drawings or selection of winning tickets or shares. The commission may
142	142	110establish, and from time to time revise, such rules and regulations as it deems necessary or
143	143	111desirable to carry out the group agreement and shall file the same with the office of the state
144	144	112secretary.
145	145	113 SECTION 3. Said chapter, as so appearing, is hereby amended by striking out section 25
146	146	114and inserting in place thereof the following section:-
147	147	115 Section 25. (a) The apportionment of the total revenues accruing from the sale of lottery
148	148	116tickets or shares and from all other sources at the point of sale shall be as follows: (i) the
149	149	117payment of prizes to the holders of winning tickets or shares which in any case shall be no less
150	150	118than forty-five per cent of the total revenues accruing from the sale of lottery tickets; (ii) the
151	151	119payment of costs incurred in the operation and administration of the lottery, including the
152	152	120expenses of the commission and the costs resulting from any contract or contracts entered into 7 of 7
153	153	121for promotional, advertising or operational services or for the purchase or lease of lottery
154	154	122equipment and materials which in no case shall exceed fifteen per cent of the total revenues
155	155	123accruing from the sale of lottery tickets, subject to appropriation; and (iii) the balance shall be
156	156	124used to fund budgeted aid to cities and towns as provided in section 18C of chapter 58, subject to
157	157	125appropriation.
158	158	126 (b) The apportionment of the total revenues accruing from the sale of lotteries conducted
159	159	127online, over the internet, through the use of a mobile application or through any other means as
160	160	128authorized by section 24 of this chapter shall be as follows: (i) the payment of prizes to the
161	161	129holders of winning tickets or shares; (ii) the payment of costs incurred in the operation and
162	162	130administration of such lotteries, including the expenses of the commission and the costs resulting
163	163	131from any contract or contracts entered into for promotional, advertising or operational services or
164	164	132for the purchase or lease of lottery equipment and materials which in no case shall exceed fifteen
165	165	133per cent of the total revenues accruing from the sale of lottery tickets, subject to appropriation;
166	166	134and (iii) the balance shall be used to fund budgeted aid to cities and towns as provided in section
167	167	13518C of chapter 58, subject to appropriation; provided that, in any fiscal year where the balance
168	168	136used to fund such budgeted aid exceeds one-hundred-three per cent of budgeted aid apportioned
169	169	137in the previous fiscal year, the portion of the balance exceeding one-hundred-three per cent shall
170	170	138be apportioned as follows:-- (i) twenty five per cent to the Massachusetts School Building
171	171	139Authority established in section 1A of chapter 70B; (ii) twenty five per cent to special education
172	172	140programs as set forth in chapter 71B; and (ii) fifty per cent to fund budgeted aid to cities and
173	173	141towns as provided in section 18C of chapter 58, subject to appropriation.
174	174	142 SECTION 4. Section 3 of chapter 137 of the General Laws, as so appearing, is hereby
175	175	143amended by inserting after the word “to”, in line 6, the following words:- “chapter 10 or”.