0001| HOUSE BILL 747
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0002| 43rd legislature - STATE OF NEW MEXICO - first session, 1997
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0003| INTRODUCED BY
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0004| HENRY KIKI SAAVEDRA
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0005|
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0006|
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0007|
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0008|
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0009|
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0010| AN ACT
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0011| RELATING TO STATE LOTTERY REVENUES; CHANGING THE DISPOSITION OF
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0012| NET LOTTERY REVENUES TO EARMARK SIXTY PERCENT FOR PUBLIC SCHOOL
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0013| MIDDLE SCHOOL AND JUNIOR HIGH SCHOOL EXTRACURRICULAR
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0014| ACTIVITIES; CREATING A FUND; MAKING AN APPROPRIATION; AMENDING
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0015| AND ENACTING SECTIONS OF THE NMSA 1978.
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0016|
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0017| BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
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0018| Section 1. [NEW MATERIAL] FINDINGS AND PURPOSE.--
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0019| A. The legislature finds that a substantial part of
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0020| New Mexico's criminal activities originates when its youth,
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0021| especially those in their middle school years, are deprived of
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0022| constructive alternatives to juvenile crime. Therefore,
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0023| establishing and conducting supervised extracurricular
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0024| activities in middle schools should be a major factor in
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0025| mitigating the effects of gangs, drugs, classroom disruptions,
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0001| thefts, murders, suicides and other antisocial activities of
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0002| this group of at-risk youth.
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0003| B. It is the purpose of this act to fund the
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0004| establishment of extracurricular programs, particularly sports
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0005| programs, for middle school youth. Successful implementation
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0006| of these programs will eventually alleviate overcrowded
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0007| conditions in New Mexico's juvenile and adult correctional
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0008| facilities, contribute to a considerably lower recidivism rate
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0009| and tend to raise educational performance among New Mexico
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0010| youth, thus contributing to tangible savings in state
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0011| expenditures, which can be applied to other programs, including
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0012| education.
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0013| Section 2. [NEW MATERIAL] PUBLIC SCHOOL
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0014| EXTRACURRICULAR ACTIVITIES FUND CREATED--PURPOSE.--
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0015| A. The "public school extracurricular activities
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0016| fund" is created in the state treasury and shall be
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0017| administered by the state department of public education. The
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0018| fund shall consist of net lottery revenues distributed to the
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0019| fund and any other appropriations, deposits, transfers or money
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0020| otherwise accruing to the fund. Earnings from investment of
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0021| the fund shall be credited to the fund. Any balance in the
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0022| fund at the end of any fiscal year shall remain in the fund for
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0023| use for the purposes of the fund.
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0024| B. Money in the public school extracurricular
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0025| activities fund is appropriated to the state department of
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0001| public education for distribution to school districts to
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0002| establish and conduct extracurricular activities at the middle
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0003| schools and junior high schools in the district. The amount to
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0004| be distributed to each district annually shall be the amount
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0005| determined by multiplying the balance in the fund on August 1
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0006| by the percentage that the school district's membership is of
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0007| total school district membership.
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0008| C. Lottery revenue distributed to the school
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0009| districts shall be used solely for establishing and conducting
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0010| extracurricular activities for middle school and junior high
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0011| school students. School districts shall use the lottery
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0012| revenue as provided in this subsection and shall combine or
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0013| match this revenue with revenue and support from other sources
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0014| available for the same purpose, such as the Albuquerque middle
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0015| school initiative. In addition to the specific requirements of
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0016| this section, school districts may use lottery revenues for
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0017| intramural sports programs and for activities related to sports
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0018| programs, such as cheerleading, band and pep clubs.
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0019| Specifically, each school district shall establish the
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0020| following extracurricular programs for all middle schools and
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0021| junior high schools in the district as follows:
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0022| (1) in the first year that lottery revenues
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0023| are distributed, an interscholastic basketball program shall be
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0024| established;
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0025| (2) in the second year that lottery revenues
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0001| are distributed, interscholastic football and volleyball
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0002| programs shall be established;
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0003| (3) in the third year that lottery revenues
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0004| are distributed, a fine arts program, including both art and
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0005| music, shall be established; and
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0006| (4) in the fourth and fifth years that lottery
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0007| revenues are distributed, vocational training programs such as
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0008| auto mechanics and woodshop shall be established.
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0009| D. As used in this section, "membership" means the
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0010| total enrollment of qualified middle school and junior high
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0011| students in the school district on the fortieth day of the
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0012| school year, as membership is defined and determined for
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0013| purposes of the Public School Finance Act.
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0014| Section 3. Section 6-24-24 NMSA 1978 (being Laws 1995,
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0015| Chapter 155, Section 24) is amended to read:
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0016| "6-24-24. DISPOSITION OF REVENUE.--
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0017| A. As nearly as practical, an amount equal to at
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0018| least fifty percent of the gross annual revenues from the sale
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0019| of lottery tickets shall be returned to the public in the form
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0020| of lottery prizes.
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0021| B. The authority shall transmit all net revenues to
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0022| the state treasurer who shall deposit sixty percent of the
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0023| revenues in the public school [capital outlay fund for
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expenditure pursuant to the provisions of the Public School
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Capital Outlay Act] extracurricular activities fund and
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0001| forty percent in the lottery tuition fund. Estimated net
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0002| revenues shall be transmitted monthly to the state treasurer
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0003| for deposit in the funds, provided the total amount of annual
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0004| net revenues for the fiscal year shall be transmitted no later
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0005| than August 1 each year.
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0006| C. In determining net revenues, operating expenses
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0007| of the lottery include all costs incurred in the operation and
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0008| administration of the lottery and all costs resulting from any
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0009| contracts entered into for the purchase or lease of goods or
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0010| services required by the lottery, including but not limited to
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0011| the costs of supplies, materials, tickets, independent audit
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0012| services, independent studies, data transmission, advertising,
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0013| promotion, incentives, public relations, communications,
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0014| commissions paid to lottery retailers, printing, distribution
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0015| of tickets, purchases of annuities or investments to be used to
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0016| pay future installments of winning lottery tickets, debt
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0017| service and payment of any revenue bonds issued, contingency
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0018| reserves, transfers to the reserve fund and any other necessary
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0019| costs incurred in carrying out the provisions of the New Mexico
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0020| Lottery Act.
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0021| D. An amount up to two percent of the gross annual
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0022| revenues shall be set aside as a reserve fund to cover bonuses
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0023| and incentive plans for lottery retailers, special promotions
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0024| for retailers, purchasing special promotional giveaways,
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0025| sponsoring special promotional events, compulsive gambling
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0001| rehabilitation and such other purposes as the board deems
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0002| necessary to maintain the integrity and meet the revenue goals
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0003| of the lottery. The board shall report annually to the
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0004| governor and each regular session of the legislature on the use
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0005| of the money in the reserve fund. Any balance in excess of
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0006| fifty thousand dollars ($50,000) at the end of any fiscal year
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0007| shall be transferred to the lottery tuition fund."
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0008| Section 4. Section 6-24-27 NMSA 1978 (being Laws 1995,
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0009| Chapter 155, Section 27) is amended to read:
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0010| "6-24-27. REVENUE AND BUDGET REPORTS--RECORDS--
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0011| INDEPENDENT AUDITS.--
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0012| A. The board shall:
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0013| (1) submit quarterly and annual reports to the
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0014| governor, legislative finance committee and lottery oversight
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0015| committee disclosing the total lottery revenue, prizes,
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0016| commissions, ticket costs, operating expenses and net revenues
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0017| of the authority during the reporting period and, in the annual
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0018| report, describe the organizational structure of the authority
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0019| and summarize the functions performed by each organizational
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0020| division within the authority;
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0021| (2) maintain weekly or more frequent records
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0022| of lottery transactions, including the distribution of lottery
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0023| tickets to retailers, revenue received, claims for prizes,
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0024| prizes paid, prizes forfeited and other financial transactions
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0025| of the authority; and
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0001| (3) use the state government fiscal year.
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0002| B. The board shall provide, for informational
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0003| purposes, to the department of finance and administration and
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0004| the legislative finance committee, by December 1 of each year,
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0005| a copy of the annual proposed operating budget for the
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0006| authority for the succeeding fiscal year. This budget proposal
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0007| shall also be accompanied by an estimate of the net revenues to
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0008| be deposited in the public school [capital outlay]
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extracurricular activities fund and the lottery tuition fund
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for the current and succeeding fiscal years.
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C. The board shall contract with an independent
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certified public accountant or firm for an annual financial
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audit of the authority. The certified public accountant or
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firm shall have no financial interest in any lottery
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contractor. The certified public accountant or firm shall
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present an audit report no later than March 1 for the prior
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fiscal year. The certified public accountant or firm shall
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evaluate the internal auditing controls in effect during the
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audit period. The cost of this financial audit shall be an
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operating expense of the authority. The legislative finance
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committee may, at any time, order an audit of any phase of the
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operations of the authority, at the expense of the authority,
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and shall receive a copy of the annual independent financial
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audit. A copy of any audit performed by the certified public
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accountant or ordered by the legislative finance committee
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shall be transmitted to the governor, the speaker of the house
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of representatives, the president pro tempore of the senate,
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the legislative finance committee and the lottery oversight
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committee."
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Section 5. EFFECTIVE DATE.--The effective date of the
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provisions of this act is July 1, 1997.
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