§ 42-61-15 - State lottery fund.
SECTION 42-61-15
§ 42-61-15 State lottery fund. – (a) There is created the state lottery fund, into which shall be deposited allrevenues received by the division from the sales of lottery tickets and licensefees. The fund shall be in the custody of the general treasurer, subject to thedirection of division for the use of the division, and money shall be disbursedfrom it on the order of the controller of the state, pursuant to vouchers orinvoices signed by the director and certified by the director ofadministration. The moneys in the state lottery fund shall be allotted in thefollowing order, and only for the following purposes:
(1) Establishing a prize fund from which payments of theprize awards shall be disbursed to holders of winning lottery tickets on checkssigned by the director and countersigned by the controller of the state or hisor her designee. The amount of payments of prize awards to holders of winninglottery tickets shall be determined by the division, but shall not be less thanforty-five percent (45%) nor more than sixty-five percent (65%) of the totalrevenue accruing from the sale of lottery tickets.
(ii) However, for the lottery game commonly known as "Keno",the amount of prize awards to holders of winning Keno tickets shall bedetermined by the division, but shall not be less than forty-five percent (45%)nor more than seventy-two percent (72%) of the total revenue accruing from thesale of Keno tickets.
(2) Payment of expenses incurred by the division in theoperation of the state lotteries including, but not limited to, costs arisingfrom contracts entered into by the director for promotional, consulting, oroperational services, salaries of professional, technical, and clericalassistants, and purchases or lease of facilities, lottery equipment, andmaterials;
(3) Repayment into the general revenue fund of the amountappropriated for the implementation of the state lottery; and
(4) Payment into the general revenue fund of all revenuesremaining in the state lottery fund after the payments specified insubdivisions (a)(1) – (a)(3) of this section; provided, that the amount tobe transferred into the general revenue fund shall equal no less thantwenty-five percent (25%) of the total revenue received and accrued from thesale of lottery tickets plus any other income earned from the lottery; providedfurther, that the revenue returned to the general fund from the game commonlyknown as Keno, shall not be calculated as part of the twenty-five percent (25%)mandate required by this section, but the amount transferred into the generalrevenue fund shall equal no less than fifteen percent (15%) of the total Kenorevenue received.
(b) The auditor general shall conduct an annual post audit ofthe financial records and operations of the lottery for the preceding year inaccordance with generally accepted auditing standards and government auditingstandards. In connection with the audit, the auditor general may examine allrecords, files, and other documents of the division, and any records of lotterysales agents that pertain to their activities as agents, for purposes ofconducting the audit. The auditor general, in addition to the annual postaudit, may require or conduct any other audits or studies he or she deemsappropriate, the costs of which shall be borne by the division.
(c) Payments into the state's general fund specified insubsection (a)(4) of this section shall be made on an estimated quarterlybasis. Payment shall be made on the tenth business day following the close ofthe quarter except for the fourth quarter when payment shall be on the lastbusiness day.