Any other state or local law in conflict with this article 40 is inapplicable, but this section does not supersede or affect part 6 of article 21 of title 24.
Source: L. 2018: Entire article added with relocations, (HB 18-1027), ch. 31, p. 358, � 2, effective October 1.
Editor's note: This section is similar to former � 24-35-217 as it existed prior to 2018.
44-40-120. Division subject to termination - annual financial audits of the division. (1) (a) Unless continued or reestablished by the general assembly acting by bill, the division shall terminate on July 1, 2049.
(b) (I) The state auditor shall conduct annual financial audits of the division.
(II) At least once every five years, and more frequently in the state auditor's discretion, the state auditor shall conduct an analysis and evaluation of the performance of the division and shall submit a written report, together with any supporting materials as may be requested, to the general assembly. The first report shall be completed by January 1, 2004.
(c) In conducting the analysis and evaluation required by subsection (1)(b)(II) of this section, the state auditor shall take into consideration, but not be limited to considering, the following factors:
(I) The amount of revenue generated by the lottery for its beneficiaries as specified in article XXVII of the state constitution;
(II) The administrative and other expense of lottery dollar collections as compared to revenue derived;
(III) An evaluation of the contracts, and compliance with the contracts, of lottery equipment contractors and licensed sales agents;
(IV) Whether there has been an increase in organized crime related to gambling within the state;
(V) A report on the results of the analysis prepared by the division on the socioeconomic profile of persons who play the lottery, including information comparing the results of past analyses to assess the movement of persons from various categories;
(VI) Whether the commission encourages public participation in its decisions rather than participation only by the people whom it regulates;
(VII) An evaluation of the effectiveness and efficiency of the division's complaint, investigation, and disciplinary procedures;
(VIII) Whether the division performs its statutory duties efficiently and effectively;
(IX) Whether administrative or statutory changes are necessary to improve the operation of the lottery in the best interests of the state's citizens;
(X) Any other matters of concern about the operation and functioning of the lottery; and
(XI) A report on any gifts and gratuities received by members of the commission and employees of the division.
(2) Prior to any revision of the division's functions, a committee of reference in each house of the general assembly shall hold a public hearing thereon to consider the report provided by the state auditor, as required by subsection (1)(b)(II) of this section. The hearing shall include the factors set forth in subsection (1)(c) of this section.
Source: L. 2018: (1)(a) amended, (SB 18-066), ch. 172, p. 1203, � 1, effective August 8; entire article added with relocations, (HB 18-1027), ch. 31, p. 358, � 2, effective October 1.
Editor's note: (1) This section is similar to former � 24-35-218 as it existed prior to 2018.
(2) Subsection (1)(a) of this section was numbered as � 24-35-218 (1)(a) in SB 18-066. That provision was harmonized with and relocated to this section as this section appears in HB 18-1027.
44-40-121. Licensed agent recovery reserve - payments from reserve - revocation of license. (1) There is hereby created in the lottery fund the licensed agent recovery reserve, which shall be used under the direction of the division in the manner prescribed in this section.
(2) (a) Beginning January 1, 1988, each licensed sales agent shall pay to the division a fee.
(b) The amount of the fee and the frequency with which it shall be collected shall be established by the commission pursuant to rule.
(c) All fees collected by the division pursuant to subsection (2)(b) of this section shall be transmitted to the state treasurer, who shall credit the same to the lottery fund, and the fees shall be maintained administratively as part of the licensed agent recovery reserve. Any interest earned on the investment of the fees in the fund shall be credited at least annually to said reserve.
(d) No money shall be appropriated from the general fund for the payment of any expenses incurred under this section, and no expenses shall be charged against the state.
(3) When a licensed sales agent has failed to remit any money owed to the lottery under rule, the division shall transfer money in the amount equivalent to the unpaid amount from the licensed agent recovery reserve to the lottery fund.
(4) If the division is required to make a transfer pursuant to subsection (3) of this section, the director shall revoke the sales agent's license in accordance with the provisions of section 44-40-107 (3). If the license is revoked, the sales agent shall not be eligible to be licensed again until he or she has repaid in full the amount paid from the licensed agent recovery reserve.
Source: L. 2018: Entire article added with relocations, (HB 18-1027), ch. 31, p. 359, � 2, effective October 1.
Editor's note: This section is similar to former � 24-35-219 as it existed prior to 2018.
44-40-122. Revenue bonds - authority - issuance - requirements - covenants. (1) (a) The commission may, by resolution that meets the requirements of subsection (2) of this section, authorize and issue revenue bonds in an amount not to exceed ten million dollars in the aggregate for expenses of the division. The bonds may be issued only after approval by both houses of the general assembly either by act or joint resolution and after approval by the governor in accordance with section 39 of article V of the state constitution. The bonds shall be payable only from money allocated to the division for expenses of the division pursuant to section 44-40-111 (1).
(b) All bonds issued by the commission shall provide that:
(I) No holder of any such bond may compel the state or any subdivision thereof to exercise its appropriation or taxing power; and
(II) The bond does not constitute a debt of the state and is payable only from the net revenues allocated to the division for expenses as designated in the bond.
(2) (a) Any resolution authorizing the issuance of bonds under the terms of this section shall:
(I) State the date of issuance of the bonds;
(II) State a maturity date or dates during a period not to exceed thirty years from the date of issuance of the bonds;
(III) State the interest rate or rates on, and the denomination or denominations of, the bonds;
(IV) State the medium of payment of the bonds and the place where the bonds will be paid.
(b) Any resolution authorizing the issuance of bonds under the terms of this section may:
(I) State that the bonds are to be issued in one or more series;
(II) State a rank or priority of the bonds;
(III) Provide for redemption of the bonds prior to maturity, with or without premium.
(3) Any bonds issued pursuant to the terms of this section may be sold at public or private sale. If bonds are to be sold at a public sale, the commission shall advertise the sale in any manner that the commission deems appropriate. All bonds issued pursuant to the terms of this section shall be sold at a price not less than the par value thereof, together with all accrued interest to the date of delivery.
(4) Notwithstanding any provisions of the law to the contrary, all bonds issued pursuant to this section are negotiable.
(5) (a) A resolution pertaining to issuance of bonds under this section may contain covenants as to:
(I) The purpose to which the proceeds of sale of the bonds may be applied and to the use and disposition thereof;
(II) Any matters that are customary in the issuance of revenue bonds including, without limitation, the issuance and lien position of other or additional bonds; and
(III) Books of account and the inspection and audit thereof.
(b) Any resolution made pursuant to the terms of this section shall be deemed a contract with the holders of the bonds, and the duties of the commission under the resolution shall be enforceable by any appropriate action in a court of competent jurisdiction.
(6) Bonds issued under this section and bearing the signatures of members of the commission in office on the date of the signing thereof shall be valid and binding obligations, regardless of whether, prior to the delivery thereof and payment therefor, any or all of the persons whose signatures appear thereon have ceased to be members of the commission.
(7) (a) Except as otherwise provided in the resolution authorizing the bonds, all bonds of the same issue under this section shall have a prior and paramount lien on the net revenues pledged therefor. The commission may provide for preferential security for any bonds, both principal and interest, to be issued under this section to the extent deemed feasible and desirable by the commission over any bonds that may be issued thereafter.
(b) Bonds of the same issue or series issued under this section shall be equally and ratably secured, without priority by reason of number, date, sale, execution, or delivery, by a lien on the net revenue pledged in accordance with the terms of the resolution authorizing the bonds.
Source: L. 2018: Entire article added with relocations, (HB 18-1027), ch. 31, p. 360, � 2, effective October 1.
Editor's note: This section is similar to former � 24-35-221 as it existed prior to 2018.