HB0211 - State lottery-2.
2001 |
State of Wyoming |
01LSO-0147 |
HOUSE BILL NO. HB0211
State lottery-2.
Sponsored by: Representative(s) Reese, Boswell, Cohee,
Deegan, Diercks,
Edwards, Huckfeldt, McGraw,
Morgan, Rose, Ross,
Samuelson, Tempest,
Warren and Willford
A BILL
for
1 AN ACT relating to a
state lottery; creating a state
2
lottery commission; granting authority to operate a state
3
lottery or to contract with other states for operating a
4
lottery; creating a lottery agency and the office of
5
director within the agency; providing for licensing of
6
sales agents; creating a lottery account in the enterprise
7
fund; authorizing expenditures for and specifying how
8
lottery profits shall be distributed; providing generally
9 for
the operation of the lottery; exempting sales of
10 lottery tickets and shares from sales tax;
providing
11 rulemaking authority; providing penalties;
providing for
12 appropriations and authorizing expenditures;
and providing
13 for an effective date.
14
15 Be It Enacted by the Legislature of the State of Wyoming:
Page 1
1
2 Section
1. W.S. 40-21-101 through 40-21-113
are
3
created to read:
4
5 CHAPTER 21
6 WYOMING STATE LOTTERY
7
8 40-21-101. Definitions.
9
10 (a) As used in this chapter:
11
12 (i) "Agency"
means the state lottery agency
13 created as a separate operating agency under
this chapter;
14
15 (ii) "Commission"
means the Wyoming lottery
16 commission;
17
18 (iii) "Director"
means the director of the state
19 lottery;
20
21 (iv) "Lottery"
means any lottery created and
22 operated under this chapter;
23
Page 2
1 (v) "Supplier"
means any person who enters into
2 a
contract to supply gaming materials or equipment to the
3
lottery;
4
5 (vi) "Ticket"
means any evidence issued under
6
authority of the agency establishing proof of participation
7 in
any lottery conducted under this chapter.
8
9 40-21-102. Agency created.
10
11 There is created the Wyoming state lottery agency. W.S.
12 9-2-1701 through 9-2-1708 shall not apply to
the separate
13 operating agency created by this chapter.
14
15 40-21-103. Commission created;
membership;
16 appointment; removal.
17
18 (a) There is
created the Wyoming lottery commission
19 consisting of five (5) members appointed by
the governor
20 with the advice and consent of the senate,
for a term of
21 five (5) years commencing March 1 following
appointment.
22 The filling of vacancies shall be under W.S.
28-12-101
23 through 28-12-103. No more than three (3) of the five (5)
24 members shall be from the same political
party.
Page 3
1
2 (b) In the
initial appointments, one (1) member shall
3
serve for one (1) year, one (1) shall serve for two (2)
4
years, one (1) shall serve for three (3) years, one (1)
5
shall serve for four (4) years and the remaining member
6
shall serve for five (5) years.
7
8 (c) The
governor shall appoint a chairman from among
9 the
commission membership. The commission
shall meet at
10 least quarterly. Special meetings may be called by the
11 chairman, any three (3) commission members
or by the
12 director upon seventy-two (72) hours written
notice to each
13 member.
A quorum consists of three (3) members.
14
15 (d) The
commission shall receive compensation, travel
16 expenses and per diem in the same manner and
amount as
17 legislators while going to, attending or
returning from
18 commission meetings.
19
20 40-21-104. Powers and duties of the commission.
21
22 (a) The commission shall:
23
Page 4
1 (i) Promulgate
rules and regulations governing
2 the
establishment and operation of a state lottery
3
including:
4
5 (A) Maximizing revenues;
6
7 (B) The types
of lotteries to be conducted,
8 but
no lottery shall be conducted by the commission based
9
upon bingo or upon the outcome of any athletic event or
10 race of any kind;
11
12 (C) The price
of tickets in the lottery,
13 but no ticket in any instant lottery shall
have a price of
14 less than one dollar ($1.00);
15
16 (D) The number
and size of the prizes on
17 the winning tickets and the manner of
payment of prizes;
18
19 (E) The manner
of selecting winning
20 tickets.
All drawings shall be public, witnessed by a
21 certified public accountant, recorded by
both video and
22 audio recording and shall be actually
performed by a person
23 who is not an employee of the agency or
member of the
24 commission;
Page 5
1
2 (F) The
frequency of the drawings or
3
selection of winning tickets;
4
5 (G) The types
of locations at which tickets
6 may
be sold;
7
8 (H) The method used in selling tickets;
9
10 (J) The
licensing of agents to sell
11 tickets, except no person under the age of
eighteen (18)
12 years shall be licensed as an agent and no
license shall be
13 transferable;
14
15 (K) The manner
and compensation to be paid
16 licensed sales agents including special
bonuses or
17 incentives, as necessary to provide for the
adequate
18 availability of tickets to prospective
buyers and for the
19 convenience of the public;
20
21 (M) Other
matters necessary for the
22 efficient and economical operation and
administration of
23 the lottery and for the convenience of
purchasers of
24 tickets or holders of winning tickets.
Page 6
1
2 (ii) Hear
appeals regarding the granting,
3
revocation, suspension or renewal of licenses for lottery
4
sales agents;
5
6 (iii) Make an
annual report to the legislature
7
regarding the operation of the lottery and recommendations
8 for
improvement.
9
10 (b) The
commission may contract with other states for
11 the operation, marketing and promotion of
any lottery. The
12 commission may enter into agreements to
participate in
13 multi-state lotteries, and those lotteries
may be conducted
14 in Wyoming subject to the terms and
conditions of those
15 agreements.
16
17 40-21-105. Director; appointment;
qualifications;
18 duties.
19
20 (a) The
director of the agency shall be appointed by
21 and serve at the pleasure of the
governor. The director
22 shall devote full time to the duties of his
office and
23 shall be qualified by training and
experience to administer
24 the state lottery.
Page 7
1
2 (b) The director shall:
3
4 (i) Manage and supervise the agency;
5
6 (ii) Supervise
and administer the operation of
7 the
lottery in accordance with this chapter and rules and
8
regulations promulgated by the commission;
9
10 (iii) Under the
rules and regulations of the
11 commission, license agents to sell lottery
tickets;
12
13 (iv) Have an
annual audit of all lottery
14 accounts and transactions performed by an
independent
15 certified public accountant and submit it to
the governor,
16 the legislature, the state treasurer and the
commission;
17
18 (v) Employ an
assistant director for lottery
19 security and a security staff who shall have
peace officer
20 authority;
21
22 (vi) Not be
subject to W.S. 9-2-1019 through
23 9-2-1022 and 9-3-101 through 9-3-105.
24
Page 8
1 (c) In addition
to subsection (b) of this section,
2 the
director shall:
3
4 (i) Maintain
records accurately and fairly
5
reflecting transactions for each twenty-four (24) hour
6
period, including the distribution of tickets to licensed
7
sales agents, receipt of funds, prize claims, prize
8
disbursements, expenses and other financial transactions of
9 the
lottery as necessary;
10
11 (ii) Report to
the governor pursuant to W.S.
12 9-2-1014, including a complete statement of
the financial
13 position and operation of the lottery;
14
15 (iii) Contract
with a state agency or a private
16 business experienced in security procedures
to periodically
17 conduct a comprehensive study and evaluation
of all aspects
18 of security in the operation of the lottery.
19
20 (d) The director may:
21
22 (i) Suspend or
revoke any license issued under
23 this chapter;
24
Page 9
1 (ii) Employ
personnel necessary to implement
2
this chapter;
3
4 (iii) With the
approval of the commission,
5
contract for materials, equipment and supplies to design,
6
install, operate and promote the lottery and for studies
7
relevant to successful operation of the lottery. W.S.
8 9-2-1016
does not apply to the commission, but any contract
9 for
an amount in excess of seven thousand five hundred
10 dollars ($7,500.00) shall be approved by the
commission and
11 the governor.
12
13 (e) For
purposes of enforcing this chapter, the
14 director through his employees or agents may
examine the
15 records, books of account and other papers
of any licensed
16 sales agent. In any examination, the
director may require
17 by subpoena the production of books, papers,
records,
18 files, correspondence, documents and other
evidence
19 relevant to the inquiry. Refusal to obey a subpoena may
20 upon issuance of a court order requiring
compliance with
21 the subpoena, be punished by the court as
contempt.
22
23 40-21-106. Licenses; issuance;
suspension and
24 revocation; persons prohibited from holding.
Page 10
1
2 (a) The
commission shall include in its licensing
3
rules and regulations requirements relating to:
4
5 (i) Financial
responsibility and bonding of
6
sales agents;
7
8 (ii) Accessibility
of the licensee's place of
9
business to the public;
10
11 (iii) Sufficiency of existing licenses;
12
13 (iv) Volume of expected sales;
14
15 (v) Character of the licensee;
16
17 (vi) Public display of the license;
18
19 (vii) Other
matters related to the security and
20 efficient operation of the lottery.
21
22 (b) The
director shall issue licenses under rules and
23 regulations of the commission.
24
Page 11
1 (c) A license
shall be revoked if the director finds,
2
after a hearing, that the licensee has:
3
4 (i) Provided
false or misleading information to
5 the
agency;
6
7 (ii) Been
convicted of any felony or gambling
8
related offense;
9
10 (iii) Endangered the security of the lottery; or
11
12 (iv) Become a
person whose character is no
13 longer consistent with the protection of the
public
14 interest and trust in the lottery.
15
16 (d) A license
may be suspended, revoked or not
17 renewed for any of the following if after a
hearing the
18 director finds the holder has:
19
20 (i) Changed business location;
21
22 (ii) An insufficient sales volume;
23
Page 12
1 (iii) A
delinquency in remitting money owed to
2 the
lottery;
3
4 (iv) Endangered
the efficient operation of the
5
lottery; or
6
7 (v) Violated
this chapter or any rule or
8
regulation of the commission.
9
10 (e) Any person
including an organization, may be a
11 licensed sales agent except:
12
13 (i) Those who
will engage in business
14 exclusively as a lottery sales agent;
15
16 (ii) Those
convicted of a felony, a crime
17 involving fraud or misrepresentation or a
gambling related
18 offense;
19
20 (iii) Professional gamblers;
21
22 (iv) Those
engaged in any form of illegal
23 gambling;
24
Page 13
1 (v) A person
not of good character and
2
reputation in the community in which he resides; or
3
4 (vi) An organization
in which a person listed in
5
paragraph (e)(ii), (iii) or (iv) of this section:
6
7 (A) Has a financial interest;
8
9 (B) Is an
officer, director or managing
10 agent;
11
12 (C) Will
participate in the management or
13 sales of lottery tickets.
14
15 (f) Each
licensed sales agent shall maintain records
16 to completely describe lottery transactions
and other
17 information necessary for the proper
administration of the
18 lottery as required by commission rules and
regulations.
19 These records shall be available for agency
review during
20 business hours. The director may require an audit of the
21 records.
22
Page 14
1 (g) Licenses
shall specify the place at which the
2
sales will occur, but no license shall be issued for
3
residential premises.
4
5 40-21-107. Contractors supplying gaming
equipment;
6 disclosures.
7
8 (a) Any person
submitting application to contract as
9 a
supplier under this chapter shall disclose under oath in
10 the application:
11
12 (i) The
business name and address and names and
13 addresses of the following:
14
15 (A) If the
applicant is a partnership, all
16 general and limited partners;
17
18 (B) If the
applicant is a trust, the
19 trustee and all persons entitled to receive
income or
20 benefit from the trust;
21
22 (C) If the
applicant is an association, the
23 members, officers and directors;
24
Page 15
1 (D) If the
applicant is a corporation, the
2
officers, directors and each owner or holder, directly or
3
indirectly, of any equity security or other evidence of
4
ownership of any interest in the corporation, except in the
5
case of owners or holders of publicly held equity
6
securities of a publicly traded corporation, only the names
7 and
addresses of those owning or holding one percent (1%)
8 or
more of the publicly held securities;
9
10 (E) If the
applicant is a subsidiary
11 company, the holding or parent company
involved and the
12 officers, directors and stockholders of
each, in the case
13 of owners or holders of publicly held
securities of a
14 holding company that is a publicly traded
corporation, only
15 the names and addresses of those owning or
holding one
16 percent (1%) or more of the publicly held
securities.
17
18 (ii) If the
applicant is a corporation, all the
19 states in which the applicant is
incorporated to do
20 business and the nature of that business;
21
22 (iii) Other
jurisdictions in which the applicant
23 has contracts to supply gaming materials or
equipment;
24
Page 16
1 (iv) The details
of any state or federal
2
criminal conviction of the applicant or any person whose
3
name and address is required under paragraph (a)(i) of this
4
section. This paragraph applies notwithstanding any laws to
5 the
contrary regarding expungement or sealed records;
6
7 (v) The details
of any disciplinary action taken
8 by
any state against the applicant or any person whose name
9 and
address is required under paragraph (a)(i) of this
10 section regarding any matter related to the
selling,
11 leasing, offering for sale or lease, buying
or servicing of
12 gaming materials or equipment;
13
14 (vi) A statement
of the gross receipts realized
15 in the preceding year from the sale, lease
or distribution
16 of gaming materials or equipment to states
operating
17 lotteries and to private persons licensed to
conduct
18 gambling.
The statement shall differentiate that portion
19 of the gross receipts attributable to
transactions with
20 states operating lotteries from that portion
of the gross
21 receipts attributable to transactions with
private persons
22 licensed to conduct gambling;
23
Page 17
1 (vii) The name
and address of any source of
2
gaming materials or equipment for the applicant;
3
4 (viii) The number
of years the applicant has
5
been in the business of supplying gaming materials or
6
equipment;
7
8 (ix) Any other
information accompanied by any
9
documents the commission may by rule or regulation require
10 as necessary or appropriate.
11
12 (b) If the
applicant is a subsidiary company, the
13 involved holding or parent company shall
supply the
14 information required by this section of the
applicant.
15
16 (c) The costs
of any investigation into the
17 background of the applicant seeking a
contract shall be
18 assessed against the applicant and shall be
paid by the
19 applicant at the time of billing by the
state.
20 Investigation may be conducted by the
commission or the
21 attorney general. Investigators shall have peace officer
22 authority during the period of
investigation.
23
Page 18
1 (d) No person,
firm, association or corporation
2
contracting to supply gaming equipment or materials to the
3
state for use in the operation of the state lottery shall
4 be
directly or indirectly connected with any person, firm,
5
association or corporation licensed as a sales agent under
6
this chapter, any employee of the agency or a member of the
7
commission.
8
9 (e) No contract shall be formed with an applicant if:
10
11 (i) A person
disclosed pursuant to paragraph
12 (a)(i) or (vii) of this section has been
convicted of a
13 felony or gambling related offense, engaged
in any form of
14 illegal gambling, is not of good character
and reputation
15 relevant to the secure and efficient
operation of the
16 lottery or has been convicted of a crime
involving fraud or
17 misrepresentation; or
18
19 (ii) A
disciplinary action disclosed pursuant to
20 paragraph (a)(v) of this section was
resolved adversely to
21 the supplier.
22
23 (f) No contract
for the supply of gaming materials or
24 equipment for use in the operation of the
state lottery
Page 19
1
shall be enforceable against the state if the supplier
2
fails to comply with the provisions of this section.
3
4 (g) If a
contract for lottery tickets, lottery
5
consulting services or lottery terminals or equipment
6 exceeds
one hundred thousand dollars ($100,000.00) or if a
7
contract is for drawing equipment regardless of value, each
8
prospective corporate supplier shall at the time of
9
submission of its bid or proposal, provide a current
10 personal financial statement and individual
federal and
11 state income tax returns from the past three
(3) years for
12 each of its officers and directors and for
each of the
13 officers and directors of all parent and
holding companies
14 affiliated with the supplier.
15
16 40-21-108. Conflicts of interests.
17
18 (a) No member
of the commission, employee of the
19 agency or member of their immediate families
shall have any
20 financial interest in:
21
22 (i) Any lottery;
23
24 (ii) The sale of any lottery tickets; or
Page 20
1
2 (iii) Any
organization supplying equipment,
3
materials or services for use in the operation of the
4
lottery or licensed as a sales agent under this chapter.
5
6 (b) No member
of the commission, employee of the
7
agency or member of their immediate families shall receive
8 any
gift, gratuity or anything of value from any person
9
contracting with the state to provide equipment, materials
10 or services for use in the operation of the
lottery or from
11 any person licensed as a sales agent under
this chapter.
12
13 (c) No member
of the commission, employee of the
14 agency, licensed sales agent or member of
their immediate
15 families shall purchase any ticket for or
receive any prize
16 from a lottery under this chapter.
17
18 (d) As used in
this section, "immediate family" means
19 any person residing as a member of the same
household in
20 the principal place of residence of a member
of the
21 commission, employee of the agency or a
licensed sales
22 agent.
23
Page 21
1 40-21-109. Prizes; not assignable;
withholding of
2 amounts owed state;
discharge of liability.
3
4 (a) The right
of any person to a prize is not
5
assignable, except payment of a prize may be paid to the
6
estate of a deceased prizewinner or to a person pursuant to
7
appropriate judicial order.
8
9 (b) Unclaimed
prizes shall be retained by the agency
10 for the prizewinner for one (1) year after
the prize is
11 available to be claimed. Any person who fails to claim a
12 prize during this period shall forfeit all
rights to the
13 prize.
14
15 (c) If a person
entitled to a prize is a minor,
16 payment shall be made to the person's
parent, legal
17 guardian, a person legally responsible for
the care and
18 custody of the minor or a trustee under a
trust which
19 provides for the care and education of the
minor and
20 entitles the minor to the corpus of the
trust when he
21 becomes an adult.
22
23 (d) Before
payment of any prize in excess of one
24 hundred dollars ($100.00), the director
shall provide the
Page 22
1
name and address, the value of the prize and the social
2
security number of the person claiming the prize to the
3 department
of revenue and taxation and the department of
4
family services. If either
department notifies the
5
director within ten (10) days following receipt of the
6
information, the director shall withhold payment of any
7
amount owed to the state by that person.
8
9 (e) The agency
is discharged of all liability upon
10 payment of any prize under this section.
11
12 40-21-110. Prohibited acts.
13
14 (a) No person shall:
15
16 (i) Sell a
lottery ticket at a price different
17 from that fixed by the commission;
18
19 (ii) Sell a
lottery ticket unless licensed to do
20 so under this chapter;
21
22 (iii) Sell a lottery ticket to a minor;
23
24 (iv) If a minor, purchase a lottery ticket;
Page 23
1
2 (v) Sell a
lottery ticket at a location other
3
than that specified on the license.
4
5 (b) Nothing in
this section prohibits the gift of a
6
lottery ticket to a minor.
7
8 40-21-111. Advertising.
9
10 Promotional advertising regarding the lottery shall state
11 the odds of winning and the average return
on the dollar in
12 prize money to the public. Promotional advertising
13 expenses shall be paid from the lottery
account.
14
15 40-21-112. Revenue from sales;
disposition; lottery
16 account created.
17
18 (a) There is
created a lottery account in the
19 enterprise fund.
20
21 (b) Revenues
from the sale of lottery tickets shall
22 be deposited into the lottery account. All expenses of the
23 commission and agency including salaries
shall be paid from
24 the lottery account as appropriated by the
legislature.
Page 24
1
2 (c) Prizes
shall be paid from the lottery account.
3
Total disbursements for lottery prizes shall be not less
4
than forty-five percent (45%) of the total revenue accruing
5
from the sale of lottery tickets, and sufficient funds to
6 pay
prizes are continuously appropriated from that account.
7
8 (d) Not less
than monthly, revenues in excess of
9 expenses, prizes and reserves necessary for efficient
10 operation shall be transferred as follows:
11
12 (i) Fifty percent (50%) to the general fund; and
13
14 (ii) Fifty
percent (50%) to the school capital
15 construction account.
16
17 40-21-113. Criminal penalties.
18
19 (a) Except as
provided by subsection (b) of this
20 section, a person violating this chapter
commits a
21 misdemeanor punishable by a fine of not more
than one
22 thousand dollars ($1,000.00), imprisonment
for not more
23 than one (1) year, or both. Each violation is a separate
24 offense.
Page 25
1
2 (b) Any person
who knowingly falsifies, alters,
3
forges, passes or counterfeits a lottery ticket or receipt
4 for
the purchase of a lottery ticket issued under this
5
chapter is guilty of a felony punishable by a fine of not
6
less than five thousand dollars ($5,000.00), imprisonment
7 for
not less than one (1) year, or both.
Each violation is
8 a
separate offense.
9
10 Section 2. W.S. 6-7-101(a)(iii) by creating a new
11 subparagraph (H), 9-2-1704(d) by
creating a new paragraph
12 (xv) and 39-15-105(a)(iv) by
creating a new subparagraph
13 (J) are amended to read:
14
15 6-7-101. Definitions.
16
17 (a) As used in this article:
18
19 (iii) "Gambling"
means risking any property for
20 gain contingent in whole or in part upon
lot, chance, the
21 operation of a gambling device or the
happening or outcome
22 of an event, including a sporting event,
over which the
23 person taking a risk has no control, but
does not include:
24
Page 26
1 (H) A lottery operated
by the Wyoming
2 lottery commission under W.S. 40-21-101
through 40-21-113.
3
4 9-2-1704. Reorganization plan; structure; time frame.
5
6 (d) The
entities of state government specified in
7
this subsection are designated as separate operating
8
agencies, which are separate and distinct from the
9
departments and offices specified in subsection (a) of this
10 section because of their quasi-judicial
responsibility or
11 because of their unique, specialized
function which
12 precludes their inclusion in another
department. This act
13 does not otherwise apply to separate
operating agencies.
14 Separate operating agencies are as follows:
15
16 (xv) State lottery agency.
17
18 39-15-105. Exemptions.
19
20 (a) The
following sales or leases are exempt from the
21 excise tax imposed by this article:
22
23 (iv) For the
purpose of exempting sales of
24 services and tangible personal property sold
to government,
Page 27
1
charitable and nonprofit organizations, irrigation
2
districts and weed and pest control districts, the
3
following are exempt:
4
5 (J) Sales of lottery
tickets or shares of
6 the Wyoming state lottery under W.S.
40-21-101 through
7 40-21-113.
8
9 Section 3. There is
appropriated from the general fund
10 to the lottery account in the
enterprise fund the sum of
11 seven hundred fifty thousand dollars
($750,000.00), or as
12 much thereof as necessary, to carry
out the purpose of this
13 act. This appropriation is an advance to facilitate
14 establishment of the lottery and
shall be repaid from
15 profits as soon as practicable but
in no event later than
16 January 1, 2003, or one (1) year
after the first prize is
17 paid out, whichever is later.
18
19 Section
4. The Wyoming state lottery commission is
20 authorized to expend and there is
appropriated from the
21 lottery account in the enterprise
fund forty percent (40%)
22 of total revenue from sale of
lottery tickets to the
23 commission for salaries and all
administrative expenses,
24 except prizes and repayment of the
advance from the
Page 28
1 general fund, necessary
to operate the lottery through June
2
30, 2002, or as much thereof as necessary to carry out the
3
purposes of this act.
4
5 Section
5. This act is effective immediately upon
6
completion of all acts necessary for a bill to become law
7 as
provided by Article 4, Section 8 of the Wyoming
8
Constitution.
9
10 (END)
Page 29