0001| SENATE BILL 169 | 0002| 43RD LEGISLATURE - STATE OF NEW MEXICO - SECOND SESSION, 1998 | 0003| INTRODUCED BY | 0004| MICHAEL S. SANCHEZ | 0005| | 0006| | 0007| | 0008| | 0009| | 0010| AN ACT | 0011| RELATING TO LOTTERY REVENUE; AMENDING SECTIONS OF THE NEW | 0012| MEXICO LOTTERY ACT TO PROVIDE FOR DISTRIBUTION OF ALL LOTTERY | 0013| REVENUE TO THE LOTTERY TUITION FUND. | 0014| | 0015| BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO: | 0016| Section 1. Section 6-24-3 NMSA 1978 (being Laws 1995, | 0017| Chapter 155, Section 3) is amended to read: | 0018| "6-24-3. PURPOSES.--The purposes of the New Mexico | 0019| Lottery Act are to: | 0020| A. establish and provide for the conduct of a fair | 0021| and honest lottery for the entertainment of the public; and | 0022| B. provide the maximum amount of revenues, without | 0023| imposing additional taxes or using other state revenues, for | 0024| the purposes of | 0025| ~[(1) funding critical capital outlay needs | - 1 - 0001| of the public schools; and | 0002| (2)]~ providing tuition assistance to | 0003| resident undergraduates at New Mexico post-secondary | 0004| educational institutions." | 0005| Section 2. Section 6-24-24 NMSA 1978 (being Laws 1995, | 0006| Chapter 155, Section 24) is amended to read: | 0007| "6-24-24. DISPOSITION OF REVENUE.-- | 0008| A. As nearly as practical, an amount equal to at | 0009| least fifty percent of the gross annual revenues from the sale | 0010| of lottery tickets shall be returned to the public in the form | 0011| of lottery prizes. | 0012| B. The authority shall transmit all net revenues | 0013| to the state treasurer, who shall deposit ~[sixty percent of | 0014| the revenues in the public school capital outlay fund for | 0015| expenditure pursuant to the provisions of the Public School | 0016| Capital Outlay Act and forty percent]~ |them| in the lottery | 0017| tuition fund. Estimated net revenues shall be transmitted | 0018| monthly to the state treasurer for deposit in the ~[funds]~ | 0019| |fund|, provided the total amount of annual net revenues for | 0020| the fiscal year shall be transmitted no later than August 1 | 0021| each year. | 0022| C. In determining net revenues, operating expenses | 0023| of the lottery include all costs incurred in the operation and | 0024| administration of the lottery and all costs resulting from any | 0025| contracts entered into for the purchase or lease of goods or | - 2 - 0001| services required by the lottery, including ~[but not limited | 0002| to]~ the costs of supplies, materials, tickets, independent | 0003| audit services, independent studies, data transmission, | 0004| advertising, promotion, incentives, public relations, | 0005| communications, commissions paid to lottery retailers, | 0006| printing, distribution of tickets, purchases of annuities or | 0007| investments to be used to pay future installments of winning | 0008| lottery tickets, debt service and payment of any revenue bonds | 0009| issued, contingency reserves, transfers to the reserve fund | 0010| and any other necessary costs incurred in carrying out the | 0011| provisions of the New Mexico Lottery Act. | 0012| D. An amount up to two percent of the gross annual | 0013| revenues shall be set aside as a reserve fund to cover bonuses | 0014| and incentive plans for lottery retailers, special promotions | 0015| for retailers, purchasing special promotional giveaways, | 0016| sponsoring special promotional events, compulsive gambling | 0017| rehabilitation and such other purposes as the board deems | 0018| necessary to maintain the integrity and meet the revenue goals | 0019| of the lottery. The board shall report annually to the | 0020| governor and each regular session of the legislature on the | 0021| use of the money in the reserve fund. Any balance in excess | 0022| of fifty thousand dollars ($50,000) at the end of any fiscal | 0023| year shall be transferred to the lottery tuition fund." | 0024| Section 3. Section 6-24-27 NMSA 1978 (being Laws 1995, | 0025| Chapter 155, Section 27) is amended to read: | - 3 - 0001| "6-24-27. REVENUE AND BUDGET REPORTS--RECORDS-- | 0002| INDEPENDENT AUDITS.-- | 0003| A. The board shall: | 0004| (l) submit quarterly and annual reports to | 0005| the governor, legislative finance committee and lottery | 0006| oversight committee disclosing the total lottery revenue, | 0007| prizes, commissions, ticket costs, operating expenses and net | 0008| revenues of the authority during the reporting period and, in | 0009| the annual report, describe the organizational structure of | 0010| the authority and summarize the functions performed by each | 0011| organizational division within the authority; | 0012| (2) maintain weekly or more frequent records | 0013| of lottery transactions, including the distribution of lottery | 0014| tickets to retailers, revenue received, claims for prizes, | 0015| prizes paid, prizes forfeited and other financial transactions | 0016| of the authority; and | 0017| (3) use the state government fiscal year. | 0018| B. The board shall provide, for informational | 0019| purposes, to the department of finance and administration and | 0020| the legislative finance committee, by December 1 of each year, | 0021| a copy of the annual proposed operating budget for the | 0022| authority for the succeeding fiscal year. This budget | 0023| proposal shall also be accompanied by an estimate of the net | 0024| revenues to be deposited in the ~[public school capital outlay | 0025| fund and the]~ lottery tuition fund for the current and | - 4 - 0001| succeeding fiscal years. | 0002| C. The board shall contract with an independent | 0003| certified public accountant or firm for an annual financial | 0004| audit of the authority. The certified public accountant or | 0005| firm shall have no financial interest in any lottery | 0006| contractor. The certified public accountant or firm shall | 0007| present an audit report no later than March 1 for the prior | 0008| fiscal year. The certified public accountant or firm shall | 0009| evaluate the internal auditing controls in effect during the | 0010| audit period. The cost of this financial audit shall be an | 0011| operating expense of the authority. The legislative finance | 0012| committee may, at any time, order an audit of any phase of the | 0013| operations of the authority, at the expense of the authority, | 0014| and shall receive a copy of the annual independent financial | 0015| audit. A copy of any audit performed by the certified public | 0016| accountant or ordered by the legislative finance committee | 0017| shall be transmitted to the governor, the speaker of the house | 0018| of representatives, the president pro tempore of the senate, | 0019| the legislative finance committee and the lottery oversight | 0020| committee." | 0021| Section 4. EFFECTIVE DATE.--The effective date of the | 0022| provisions of this act is July 1, 1998. | 0023|  | 0024| |