SB 283 — LIMIT LOTTERY OPERATIONAL EXPENSES

SENATE BILL 283 5454TH THLEGISLATURE LEGISLATURE- STATE OF NEW MEXICO - STATEOFNEWMEXICO- FIRST SESSIO,SESSION, 2019 INTRODUCED BY Jacob R.

Candelaria and John Arthur Smith 6Pursuant 8to 10House ANRule ACT24-1, RELATINGthis TOdocument THEincorporates NEWamendments MEXICOthat LOTTERY;have been adopted prior to consideration of this measure by the House.

LIMITINGIt THEis AMOUNTa OFtool REVENUEto THEshow NEWthe MEXICOamendments LOTTERYin MAYcontext EXPENDand FORis OPERATIONALnot EXPENSES.to be used for the purpose of amendments.

15AN BEACT ITRELATING ENACTEDTO BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:MEXICO LOTTERY;

SECTIONLIMITING 1.THE AMOUNT OF h REVENUE THE NEW MEXICO LOTTERY MAY EXPEND FOR OPERATIONAL g o EXPENSES Sflº ;

SectionSETTING 6-24-24MINIMUM NMSATRANSFERS 1978TO (beingTHE LawsLOTTERY 1995,TUITION e t 17hr Chapterg 155,e Sectioni 24,k asFUND; amended) is amended to read:

wTRANSFERRING lUNCLAIMED nPRIZE dMONEY 18TO "6-24-24.THE LOTTERY TUITION h r i s FUND»Sfl.

DISPOSITIONh , t, e u g e b l e e h BE IT ENACTED BY THE LEGISLATURE OF REVENUE.--THE =STATE =OF 19NEW A.MEXICO:

Asn nearlyd asd practical, an amount equal to at a l i a= e= ro 20h leastSflº fiftySECTION percent1. of the gross annual revenue from the sale a t m m 21 of lottery tickets shall be returned to the public in the form d r e 22 of lottery prizes.

cSection 6-24-21 NMSA 1978 (being Laws 1995, l ] b ,d i a º e sChapter k155, 23Section B.21, as amended) is amended to read:

Nor lateri than= ther lastt businesse dayw ofd eachm e a n bo 24d month,m the: authority shall transmit [at least twenty-seven u [ percent of the gross revenue of the previous month until .212303.2 December 31, 2008 and at least thirty percent of the gross ] net revenue of the previous month [thereafter] to the state treasurer, who shall deposit it in the lottery tuition fund.

b e d s º o t n = .212303.2 s k m e e a n e d r e l u [ A d "6-24-21.

DRAWINGS FOR AND PAYMENT OF PRIZES--UNCLAIMED PRIZES--APPLICABILITY OF TAXATION.-- A.

All lottery prize drawings shall be open to the public.

If the prior written approval of the chief executive officer and the executive vice president for security are obtained, the selection of winning entries may be performed by an employee of the lottery.

A member of the board shall not perform the selection of a winning entry.

Drawings for a prize of more than five thousand dollars ($5,000) shall be conducted and videotaped by the security division and witnessed by the internal auditor of the authority or [his] the internal auditor's designee.

Promotional drawings for a prize of less than five thousand dollars ($5,000) are exempt from the requirements of this subsection if prior written approval is given by the chief executive officer and the executive vice president for security.

All lottery drawing equipment used in h public drawings to select winning numbers or entries or u » r t h participants for prizes shall be examined and tested by the g e l i chief executive officer's staff and the internal auditor of the h r i s authority or [his] the internal auditor's designee prior to and h , e h t u g after each public drawing.

e b l e e , gh B.

Any lottery prize is subject to applicable state n d d i = = o h l ] b ,d taxes.

The authority shall report to the state and federal i a º r e r = taxing authorities any lottery prize exceeding six hundred t e w d m a n o d m :

b r e t º o t n = .212303.2 s k m e - 2 - e a n e d r e l u [ A d dollars ($600).

OperatingThe expensesauthority ofshall theadopt lotteryrules, includepolicies alland costsprocedures incurredto inconduct thefair operation and administrationequitable ofdrawings the lottery and allestablish costsa resultingsystem from any contracts entered into for the purchase or lease of goodsverifying or services required by the lottery,validity including the costs of supplies,tickets materials,claimed tickets, independent audit services, independent studies, data transmission, advertising, promotion, incentives, public relations, communications, commissions paid to lotterywin retailers,prizes printing,and distribution of tickets, purchases of annuities or investments to beeffect used to pay future installments of winning lottery tickets, debt service and payment of anysuch revenueprizes, bondsprovided: issued, contingency reserves, transfers to the reserve fund and any other necessary costs incurred in carrying e e 17 out the provisions of the New Mexico Lottery Act.

In(1) fiscalno eprize eshall nbe dpaid 18upon yeara 2020,ticket operatingpurchased expensesor shallsold notin beviolation moreof thanthe seventeenNew =Mexico =Lottery lAct. ] 19 percent of revenue;

inAny fiscalsuch yearprize 2021, operating expenses a l r i 20 shall notconstitute bean moreunclaimed thanprize sixteenfor percentpurposes of revenue;this section;

and(2) inthe tauthority eis adischarged tfrom fiscalall yearliability 2022upon andpayment subsequent fiscal years, operating m m 21 e d r e 22 expenses shall not be more than fifteen percent of revenue." c e r c 23 - 2 - e a nprize; b 24 u [ .212303.2

(3) the board may by rule provide for the payment of prizes by lottery retailers, whether or not the lottery retailer sold the winning ticket, whenever the amount of the prize is less than an amount set by board rule.

Payment shall not be made directly to a player by a machine or a h mechanical or electronic device;

u » r t h (4) prizes not claimed within the time period g e l i established by the authority are forfeited and shall be paid h r i s into the [prize] lottery tuition fund as provided in Subsection h , e h t u g E of Section 6-24-24 NMSA 1978.

No interest is due on a prize e b l e e , gh when a claim is delayed;

n d d i = = o h l ] b ,d (5) the right to a prize is not assignable, i a º r e r = but prizes may be paid to a deceased winner's estate or to a t e w d m a n o d m :

b r e t º o t n = .212303.2 s k m e - 3 - e a n e d r e l u [ A d person designated by judicial order;

(6) until a signature or mark is placed on a ticket in the area designated for signature, a ticket is owned by the bearer of the ticket, but after a signature or mark is placed on a ticket in the area designated for signature, a ticket is owned by the person whose signature or mark appears, and that person is entitled to any prize attributable to the owner;

and (7) the authority is not responsible for lost or stolen tickets."»Sfl SflºSECTION 1.

SECTION 2.»Sfl Section 6-24-24 NMSA 1978 (being Laws 1995, Chapter 155, Section 24, as amended) is amended to read:

"6-24-24.

DISPOSITION OF REVENUE.-- A.

As nearly as practical, an amount equal to at least fifty percent of the gross annual revenue from the sale h of lottery tickets shall be returned to the public in the form u » r of lottery prizes.

t h g e l i B.