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