| 8 | 8 | | ======== |
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| 9 | 9 | | S T A T E O F R H O D E I S L A N D |
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| 10 | 10 | | IN GENERAL ASSEMBLY |
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| 11 | 11 | | JANUARY SESSION, A.D. 2025 |
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| 12 | 12 | | ____________ |
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| 13 | 13 | | |
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| 14 | 14 | | A N A C T |
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| 15 | 15 | | RELATING TO STATE AFFAIRS AND GOVERNMENT -- STATE LOTTERY |
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| 16 | 16 | | Introduced By: Senators Ciccone, Tikoian, Burke, Kallman, de la Cruz, and Dimitri |
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| 17 | 17 | | Date Introduced: January 23, 2025 |
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| 18 | 18 | | Referred To: Senate Labor & Gaming |
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| 19 | 19 | | |
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| 20 | 20 | | |
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| 21 | 21 | | It is enacted by the General Assembly as follows: |
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| 22 | 22 | | SECTION 1. Section 42-61-4 of the General Laws in Chapter 42-61 entitled "State Lottery" 1 |
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| 23 | 23 | | is hereby amended to read as follows: 2 |
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| 24 | 24 | | 42-61-4. Powers and duties of director. 3 |
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| 25 | 25 | | The director shall have the power and it shall be the director’s duty to: 4 |
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| 26 | 26 | | (1) Supervise and administer the operation of lotteries in accordance with this chapter, 5 |
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| 27 | 27 | | chapter 61.2 of this title and with the rules and regulations of the division; 6 |
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| 28 | 28 | | (2) Act as the chief administrative officer having general charge of the office and records 7 |
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| 29 | 29 | | and to employ necessary personnel to serve at the director’s pleasure and who shall be in the 8 |
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| 30 | 30 | | unclassified service and whose salaries shall be set by the director of the department of revenue, 9 |
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| 31 | 31 | | pursuant to the provisions of § 42-61-3; 10 |
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| 32 | 32 | | (3) In accordance with this chapter and the rules and regulations of the division, license as 11 |
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| 33 | 33 | | agents to sell lottery tickets those persons, as in the director’s opinion, who will best serve the 12 |
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| 34 | 34 | | public convenience and promote the sale of tickets or shares. The director may require a bond from 13 |
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| 35 | 35 | | every licensed agent, in an amount provided in the rules and regulations of the division. Every 14 |
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| 36 | 36 | | licensed agent shall prominently display the agent’s license, or a copy of the agent’s license, as 15 |
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| 37 | 37 | | provided in the rules and regulations of the committee; 16 |
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| 38 | 38 | | (4) Confer regularly as necessary or desirable, and not less than nine (9) four (4) times per 17 |
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| 44 | 44 | | by the committee, upon request, all books, records, files, and other information, and documents of 1 |
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| 45 | 45 | | the division; advise the committee and recommend those matters that the director deems necessary 2 |
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| 46 | 46 | | and advisable to improve the operation and administration of the lotteries; 3 |
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| 47 | 47 | | (5) Suspend or revoke any license issued pursuant to this chapter, chapter 61.2 of this title 4 |
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| 48 | 48 | | or the rules and regulations promulgated under this chapter and chapter 61.2 of this title; 5 |
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| 49 | 49 | | (6) Enter into contracts for the operation of the lotteries, or any part of the operation of the 6 |
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| 50 | 50 | | lotteries, and into contracts for the promotion of the lotteries; 7 |
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| 51 | 51 | | (7) Ensure that monthly financial reports are prepared providing gross monthly revenues, 8 |
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| 52 | 52 | | prize disbursements, other expenses, net income, and the amount transferred to the state general 9 |
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| 53 | 53 | | fund for keno and for all other lottery operations; submit this report to the state budget officer, the 10 |
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| 54 | 54 | | auditor general, the permanent joint committee on state lottery, the legislative fiscal advisors, and 11 |
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| 55 | 55 | | the governor no later than the twentieth business day following the close of the month; the monthly 12 |
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| 56 | 56 | | report shall be prepared in a manner prescribed by the members of the revenue estimating 13 |
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| 57 | 57 | | conference; at the end of each fiscal year the director shall submit an annual report based upon an 14 |
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| 58 | 58 | | accrual system of accounting that shall include a full and complete statement of lottery revenues, 15 |
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| 59 | 59 | | prize disbursements, and expenses, to the governor and the general assembly, which report shall be 16 |
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| 60 | 60 | | a public document and shall be filed with the secretary of state; 17 |
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| 61 | 61 | | (8) Carry on a continuous study and investigation of the state lotteries throughout the state, 18 |
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| 62 | 62 | | and the operation and administration of similar laws, which may be in effect in other states or 19 |
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| 63 | 63 | | countries; and the director shall continue to exercise the director’s authority to study, evaluate, and 20 |
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| 64 | 64 | | where deemed feasible and advisable by the director, implement lottery-related initiatives, 21 |
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| 65 | 65 | | including but not limited to, pilot programs for limited periods of time, with the goal of generating 22 |
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| 66 | 66 | | additional revenues to be transferred by the lottery to the general fund pursuant to § 42-61-15(a)(3). 23 |
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| 67 | 67 | | Each such initiative shall be objectively evaluated from time to time using measurable criteria to 24 |
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| 68 | 68 | | determine whether the initiative is generating revenue to be transferred by the lottery to the general 25 |
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| 69 | 69 | | fund. Nothing herein shall be deemed to permit the implementation of an initiative that would be 26 |
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| 70 | 70 | | inconsistent with existing law or that would constitute an expansion of gambling requiring voter 27 |
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| 71 | 71 | | approval under applicable Rhode Island law; 28 |
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| 72 | 72 | | (9) Implement the creation and sale of commercial advertising space on lottery tickets as 29 |
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| 73 | 73 | | authorized by this section as soon as practicable after June 22, 1994; 30 |
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| 74 | 74 | | (10) Promulgate rules and regulations, which shall include, but not be limited to: 31 |
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| 75 | 75 | | (i) The price of tickets or shares in the lotteries; 32 |
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| 76 | 76 | | (ii) The number and size of the prizes on the winning tickets or shares; 33 |
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| 77 | 77 | | (iii) The manner of selecting the winning tickets or shares; 34 |
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| 78 | 78 | | |
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| 79 | 79 | | |
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| 81 | 81 | | (iv) The manner of payment of prizes to the holders of winning tickets or shares; 1 |
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| 82 | 82 | | (v) The frequency of the drawings or selections of winning tickets or shares; 2 |
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| 83 | 83 | | (vi) The number and types of locations at which tickets or shares may be sold; 3 |
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| 84 | 84 | | (vii) The method to be used in selling tickets or shares; 4 |
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| 85 | 85 | | (viii) The licensing of agents to sell tickets or shares, except that a person under the age of 5 |
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| 86 | 86 | | eighteen (18) shall not be licensed as an agent; 6 |
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| 87 | 87 | | (ix) The license fee to be charged to agents; 7 |
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| 88 | 88 | | (x) The manner in which the proceeds of the sale of lottery tickets or shares are maintained, 8 |
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| 89 | 89 | | reported, and otherwise accounted for; 9 |
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| 90 | 90 | | (xi) The manner and amount of compensation to be paid licensed sales agents necessary to 10 |
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| 91 | 91 | | provide for the adequate availability of tickets or shares to prospective buyers and for the 11 |
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| 92 | 92 | | convenience of the general public; 12 |
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| 93 | 93 | | (xii) The apportionment of the total annual revenue accruing from the sale of lottery tickets 13 |
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| 94 | 94 | | or shares and from all other sources for the payment of prizes to the holders of winning tickets or 14 |
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| 95 | 95 | | shares, for the payment of costs incurred in the operation and administration of the lotteries, 15 |
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| 96 | 96 | | including the expense of the division and the costs resulting from any contract or contracts entered 16 |
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| 97 | 97 | | into for promotional, advertising, consulting, or operational services or for the purchase or lease of 17 |
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| 98 | 98 | | facilities, lottery equipment, and materials, for the repayment of moneys appropriated to the lottery 18 |
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| 99 | 99 | | fund; 19 |
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| 100 | 100 | | (xiii) The superior court upon petition of the director after a hearing may issue subpoenas 20 |
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| 101 | 101 | | to compel the attendance of witnesses and the production of documents, papers, books, records, 21 |
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| 102 | 102 | | and other evidence in any matter over which it has jurisdiction, control, or supervision. If a person 22 |
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| 103 | 103 | | subpoenaed to attend in the proceeding or hearing fails to obey the command of the subpoena 23 |
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| 104 | 104 | | without reasonable cause, or if a person in attendance in the proceeding or hearing refuses without 24 |
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| 105 | 105 | | lawful cause to be examined or to answer a legal or pertinent question or to exhibit any book, 25 |
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| 106 | 106 | | account, record, or other document when ordered to do so by the court, that person may be punished 26 |
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| 107 | 107 | | for contempt of the court; 27 |
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| 108 | 108 | | (xiv) The manner, standards, and specification for a process of competitive bidding for 28 |
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| 109 | 109 | | division purchases and contracts; and 29 |
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| 110 | 110 | | (xv) The sale of commercial advertising space on the reverse side of, or in other available 30 |
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| 111 | 111 | | areas upon, lottery tickets provided that all net revenue derived from the sale of the advertising 31 |
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| 112 | 112 | | space shall be deposited immediately into the state’s general fund and shall not be subject to the 32 |
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| 113 | 113 | | provisions of § 42-61-15. 33 |
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| 114 | 114 | | |
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| 115 | 115 | | |
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