Bill Text: AZ SB1510 | 2012 | Fiftieth Legislature 2nd Regular | Introduced
Bill Title: State lottery reform
Spectrum: Bipartisan Bill
Status: (Introduced - Dead) 2012-02-15 - Referred to Senate RULES Committee [SB1510 Detail]
Download: Arizona-2012-SB1510-Introduced.html
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REFERENCE TITLE: state lottery reform |
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State of Arizona Senate Fiftieth Legislature Second Regular Session 2012
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SB 1510 |
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Introduced by Senators Klein: Crandall, Melvin, Meza; Representative Alston
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AN ACT
amending sections 5‑553 and 5‑554, Arizona Revised Statutes; relating to the state lottery.
(TEXT OF BILL BEGINS ON NEXT PAGE)
Be it enacted by the Legislature of the State of Arizona:
Section 1. Section 5-553, Arizona Revised Statutes, is amended to read:
5-553. Executive director
A. An executive director appointed by the governor pursuant to section 38‑211 shall exercise immediate supervision over the lottery, in direct consultation with the commission. The director shall be a person qualified by with at least five years of training and experience to administer the state lottery in the management and administration of state lotteries or some other form of legalized statewide gambling. The director shall be appointed by the governor in direct consultation with the commission and shall serve at the pleasure of the governor.
B. The director shall devote his entire time and attention to the administration of the state lottery and shall not be engaged in any other profession or occupation. The director is eligible to receive compensation pursuant to section 38‑611. END_STATUTE
Sec. 2. Section 5-554, Arizona Revised Statutes, is amended to read:
5-554. Commission; director; powers and duties; report; definitions
A. The commission shall meet with the director not less than once each quarter to make recommendations and discuss the actions of the director, set policy, receive reports from the director, adopt and implement best business practices and transact other business properly brought before the commission.
B. The commission shall oversee a state lottery to produce the maximum amount of net revenue consonant with the dignity of the state. To achieve these ends, the commission shall authorize the director to adopt rules in accordance with title 41, chapter 6. Rules adopted by the director may include provisions relating to the following:
1. Subject to the approval of the commission, the types of lottery games and the types of game play‑styles to be conducted.
2. The method of selecting the winning tickets or shares for noncomputerized online games, except that no method may be used that, in whole or in part, depends on the results of a dog race, a horse race or any sporting event.
3. The manner of payment of prizes to the holders of winning tickets or shares, including providing for payment by the purchase of annuities in the case of prizes payable in installments, except that the commission staff shall examine claims and may not pay any prize based on altered, stolen or counterfeit tickets or based on any tickets that fail to meet established validation requirements, including rules stated on the ticket or in the published game rules, and confidential validation tests applied consistently by the commission staff. No particular prize in a lottery game may be paid more than once, and in the event of a binding determination that more than one person is entitled to a particular prize, the sole remedy of the claimants is the award to each of them of an equal portion of the single prize.
4. The method to be used in selling tickets or shares, except that no elected official's name may be printed on such tickets or shares. The overall estimated odds of winning some prize or some cash prize, as appropriate, in a given game shall be printed on each ticket or share.
5. The licensing of agents to sell tickets or shares, except that a person who is under eighteen years of age shall not be licensed as an agent.
6. The manner and amount of compensation to be paid licensed sales agents necessary to provide for the adequate availability of tickets or shares to prospective buyers and for the convenience of the public, including provision for variable compensation based on sales volume.
7. Matters necessary or desirable for the efficient and economical operation and administration of the lottery and for the convenience of the purchasers of tickets or shares and the holders of winning tickets or shares.
C. The commission shall authorize the director to issue orders and shall approve orders issued by the director for the necessary operation of the lottery. Orders issued under this subsection may include provisions relating to the following:
1. The prices of tickets or shares in lottery games.
2. The themes, game play‑styles, and names of lottery games and definitions of symbols and other characters used in lottery games, except that each ticket or share in a lottery game shall bear a unique distinguishable serial number.
3. The sale of tickets or shares at a discount for promotional purposes.
4. The prize structure of lottery games, including the number and size of prizes available. Available prizes may include free tickets in lottery games and merchandise prizes.
5. The frequency of drawings, if any, or other selections of winning tickets or shares, except that:
(a) All drawings shall be open to the public.
(b) The actual selection of winning tickets or shares may not be performed by an employee or member of the commission.
(c) Noncomputerized online game drawings shall be witnessed by an independent observer.
6. Requirements for eligibility for participation in grand drawings or other runoff drawings, including requirements for the submission of evidence of eligibility within a shorter period than that provided for claims by section 5‑568.
7. Incentive and bonus programs designed to increase sales of lottery tickets or shares and to produce the maximum amount of net revenue for this state.
D. Notwithstanding title 41, chapter 6 and subsection B of this section, the director, subject to the approval of the commission, may establish a policy, procedure or practice that relates to an existing online game or a new online game that is the same type and has the same type of game play‑style as an online game currently being conducted by the lottery or may modify an existing rule for an existing online game or a new online game that is the same type and has the same type of game play‑style as an online game currently being conducted by the lottery, including establishing or modifying the matrix for an online game by giving notice of the establishment or modification at least thirty days before the effective date of the establishment or modification.
E. The commission shall maintain and make the following information available for public inspection at its offices during regular business hours:
1. A detailed listing of the estimated number of prizes of each particular denomination expected to be awarded in any instant game currently on sale.
2. After the end of the claim period prescribed by section 5‑568, a listing of the total number of tickets or shares sold and the number of prizes of each particular denomination awarded in each lottery game.
3. Definitions of all play symbols and other characters used in each lottery game and instructions on how to play and how to win each lottery game.
F. Any information that is maintained by the commission and that would assist a person in locating or identifying a winning ticket or share or that would otherwise compromise the integrity of any lottery game is deemed confidential and is not subject to public inspection.
G. The commission, in addition to other games authorized by this article, shall establish two special games for each year to be conducted concurrently with other lottery games authorized under subsection B of this section. The monies for prizes, for operating expenses and for payment to the Arizona competes fund, as provided in section 5‑572, subsection B, shall be accounted for separately as nearly as practicable in the lottery commission's general accounting system. The monies shall be derived from the revenues of the special games, and monies for prizes do not become an expense to the lottery commission's annual appropriation as provided in section 5‑555, subsection D and section 5‑572, subsection I. Monies saved from the revenues of the special games, by reason of operating efficiencies, shall become other revenue of the lottery commission and revert to the state general fund.
H. The commission, in addition to other games authorized by this article, may establish multistate lottery games to be conducted concurrently with other lottery games authorized under subsections B and G of this section. The monies for prizes, for operating expenses and for payment to the state general fund shall be accounted for separately as nearly as practicable in the lottery commission's general accounting system. The monies shall be derived from the revenues of multistate lottery games.
I. The commission, in addition to other games authorized by this article, shall establish special instant ticket games with play areas protected by paper tabs designated for use by charitable organizations. The monies for prizes and for operating expenses shall be accounted for separately as nearly as practicable in the lottery commission's general accounting system. Monies saved from the revenues of the special games, by reason of operating efficiencies, shall become other revenue of the lottery commission and revert to the state general fund.
J. The state lottery shall contract with one or more vendors to provide pooling technology that will enable the state lottery and its licensed ticket agents to sell to any purchaser an ownership share of less than one hundred per cent in one or more lottery plays or pools of lottery plays with the purchaser sharing in any lottery prizes awarded to those shared ownership lottery plays. Within ninety days after the effective date of this amendment to this section, the pooling technology shall be available at a minimum on multistate draw games and the largest statewide draw game. The state lottery shall market the pooling option to potential customers with a marketing campaign that is similar in manner and scope to marketing campaigns for major lottery product introductions.
K. The commission shall consider a request for proposals to private entities to assume the operations of the state lottery, subject to the approval of the governor. No later than one year after the effective date of this amendment to this section, the commission shall award a contract to the private entity that the commission determines will operate the state lottery in the most efficient and cost‑effective manner. The commission shall coordinate the activities of the private entity that is selected to operate the state lottery.
J. L. The commission or director shall not establish or operate any online or electronic keno game or any game played on the internet.
K. M. The commission or director shall not establish or operate any lottery game or any type of game play‑style, either individually or in combination, that uses gaming devices or video lottery terminals as those terms are used in section 5‑601.02, including monitor games that produce or display outcomes or results more than once per hour.
L. N. The director shall print, in a prominent location on each lottery ticket or share, a statement that help is available if a person has a problem with gambling and a toll-free telephone number where problem gambling assistance is available. The director shall require all licensed agents to post a sign with the statement that help is available if a person has a problem with gambling and the toll-free telephone number at the point of sale as prescribed and supplied by the director. The requirements of this subsection apply to tickets and shares printed after July 18, 2000.
O. At least once every six moths beginning February 1, 2013, the commission shall report the net profit of the state lottery to the governor, the speaker of the house of representatives and the president of the senate. The commission shall provide a copy of this report to the secretary of state.
M. P. For the purposes of this section:
1. "Charitable organization" means any nonprofit organization, including not more than one auxiliary of that organization, that has operated for charitable purposes in this state for at least two years before submitting a license application under this article.
2. "Game play‑style" means the process or procedure that a player must follow to determine if a lottery ticket or share is a winning ticket or share.
3. "Matrix" means the odds of winning a prize and the prize payout amounts in a given game.
Sec. 3. Intent
A. It is the intent of the legislature to have a state lottery that is operated in a more efficient and cost effective manner. The legislature intends to encourage the state lottery to seek out and benefit from private business experience.
B. It is the intent of the legislature that a portion of the additional revenue generated by this act could be used to:
1. Repay this state's obligation on the lease‑purchase finance agreements of state owned buildings under Laws 2010, sixth special session, chapter 4, section 2.
2. Pay off the state lottery revenue bonds issued pursuant to title 5, chapter 5.1, article 1, Arizona Revised Statutes.
