SENATE CORPORATIONS AND TRANSPORTATION COMMITTEE

SUBSTITUTE FOR SENATE BILL 355

52nd legislature - STATE OF NEW MEXICO - first session, 2015

AN ACT

RELATING TO THE NEW MEXICO LOTTERY; CLARIFYING THAT A DEBIT CARD MAY BE USED TO PURCHASE A LOTTERY TICKET; ALLOWING THE NEW MEXICO LOTTERY AUTHORITY TO CONTRACT CERTAIN PROCUREMENT FOR A PERIOD OF UP TO TEN YEARS; REQUIRING THE AUTHORITY TO TRANSMIT THE NET REVENUE FROM THE SALE OF LOTTERY GAMES TO THE LOTTERY TUITION FUND ON A MONTHLY BASIS; REQUIRING THE AUTHORITY TO TRANSMIT EACH YEAR AN AMOUNT THAT IS NO LESS THAN THE AMOUNT THAT WAS TRANSMITTED IN FISCAL YEAR 2015.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:

     SECTION 1. Section 6-24-15 NMSA 1978 (being Laws 1995, Chapter 155, Section 15) is amended to read:

     "6-24-15. LOTTERY TICKETS--SALES.--

          A. The price of each lottery ticket shall be clearly stated on the ticket. No person shall sell a ticket at a price other than at the price established by the authority unless authorized in writing by the chief executive officer. No person other than a lottery retailer shall sell lottery tickets, but this subsection shall not be construed to prevent a person who may lawfully purchase tickets from making a gift of lottery tickets. Transactions between individuals on a nonprofit basis are permissible. Nothing in the New Mexico Lottery Act shall be construed to prohibit the authority from designating certain of its agents or employees to sell or give lottery tickets directly to the public.

          B. Lottery tickets may be given by merchants as a means of promoting goods or services to customers or prospective customers.

          C. Tickets shall not be sold to or purchased by individuals under eighteen years of age. Persons under eighteen years of age may receive lottery tickets as gifts.

          D. Tickets may be purchased only with cash [or a], check or debit card and shall not be purchased on credit.

          E. The names of elected officials shall not appear on any lottery ticket."

     SECTION 2. Section 6-24-19 NMSA 1978 (being Laws 1995, Chapter 155, Section 19, as amended) is amended to read:

     "6-24-19. PROCUREMENT--COMPETITIVE PROPOSALS.--

          A. The authority shall enter into a contract for a procurement after evaluating competitive proposals and shall not design requests for proposals to provide only for sole source contracts. The authority shall conduct its own procurement, but the authority shall conduct all procurement in accordance with the Procurement Code, except as provided in Subsection B of this section. In all procurement decisions, the authority shall take into account the particularly sensitive nature of the lottery and shall act to promote and ensure security, honesty, fairness and integrity in the operation and administration of the lottery and the objectives of raising revenue for the public purposes of the New Mexico Lottery Act. Procurements shall not be artificially divided to reduce the cost of the procurement below the procurement thresholds provided in the Procurement Code.

          B. The authority may contract for a period of up to ten years for instant ticket printing and computer gaming systems to achieve maximum pricing efficiencies."

     SECTION 3. 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 of lottery [tickets] games shall be returned to the public in the form of lottery prizes.

          B. No later than the last business day of each month, the authority shall transmit [at least twenty-seven percent of] the [gross] net revenue of the previous month [until December 31, 2008 and at least thirty percent of the gross revenue of the previous month thereafter] to the state treasurer, who shall deposit it in the lottery tuition fund. By the last day of each July, the authority shall have transmitted, for the previous fiscal year, no less than the total amount transmitted in fiscal year 2015.

          C. Operating expenses of the lottery include all costs incurred in the operation and administration of the lottery and all costs resulting from any contracts entered into for the purchase or lease of goods or services required by the lottery, including the costs of supplies, materials, tickets, independent audit services, independent studies, data transmission, advertising, promotion, incentives, public relations, communications, commissions paid to lottery retailers, printing, distribution of tickets, purchases of annuities or investments to be used to pay future installments of winning lottery tickets, debt service and payment of any revenue bonds issued, contingency reserves, transfers to the reserve fund and any other necessary costs incurred in carrying out the provisions of the New Mexico Lottery Act."

     SECTION 4. EFFECTIVE DATE.--The effective date of the provisions of this act is July 1, 2015.

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