0001| SENATE BILL 751
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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| SHANNON ROBINSON
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0006|
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0008|
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0009|
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0010| AN ACT
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0011| RELATING TO THE NEW MEXICO LOTTERY; LIMITING THE ANNUAL
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0012| OPERATING BUDGET OF THE NEW MEXICO LOTTERY AUTHORITY; AMENDING
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0013| CERTAIN SECTIONS OF THE NMSA 1978.
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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 6-24-7 NMSA 1978 (being Laws 1995,
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0017| Chapter 155, Section 7) is amended to read:
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0018| "6-24-7. BOARD OF DIRECTORS--DUTIES.--The board shall
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0019| provide the authority with the private-sector perspective of a
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0020| large marketing enterprise and shall make every effort to
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0021| exercise sound and prudent business judgment in its management
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0022| and promotion of the lottery. It is the duty of the board to:
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0023| A. adopt all rules, policies and procedures
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0024| necessary for the establishment and operation of the lottery;
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0025| B. maximize the net revenue for the public purposes
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0001| of the New Mexico Lottery Act and to that end assure that all
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0002| rules, policies and procedures adopted further revenue
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0003| maximization;
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0004| C. appoint a chief executive officer, prescribe his
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0005| qualifications, duties and salary and set the salaries of the
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0006| other officers and employees of the authority;
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0007| D. approve, disapprove, amend or modify the annual
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0008| budget recommended by the chief executive officer for the
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0009| operation of the authority; provided that the annual budget
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0010| for the operating expenses of the authority shall not exceed
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0011| twelve percent of the projected gross annual revenue;
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0012| E. approve all major procurements and approve,
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0013| disapprove, amend or modify the terms of such procurements
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0014| recommended by the chief executive officer;
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0015| F. supervise the chief executive officer and the
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0016| other officers and employees of the authority and meet with the
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0017| chief executive officer at least once every three months to
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0018| make and consider recommendations, set policies, determine
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0019| types and forms of lottery games to be operated by the lottery
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0020| and transact other necessary business;
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0021| G. conduct, with the chief executive officer, a
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0022| continuing study of the lottery and other state lotteries to
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0023| improve the efficiency, profitability and security of the
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0024| authority and the lottery;
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0025| H. prepare quarterly and annual reports and
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0001| maintain records as required under the New Mexico Lottery Act;
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0002| and
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0003| I. pursue any [and all] other matters necessary,
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0004| desirable or convenient for the efficient and effective
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0005| operation of lottery games, the continued entertainment and
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0006| convenience of the public and the integrity of the lottery."
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0007| Section 2. Section 6-24-24 NMSA 1978 (being Laws 1995,
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0008| Chapter 155, Section 24) is amended to read:
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0009| "6-24-24. DISPOSITION OF REVENUE.--
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0010| A. As nearly as practical, an amount equal to at
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0011| least fifty percent of the gross annual revenues from the sale
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0012| of lottery tickets shall be returned to the public in the form
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0013| of lottery prizes.
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0014| B. The authority shall transmit all net revenues to
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0015| the state treasurer who shall deposit sixty percent of the
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0016| revenues in the public school capital outlay fund for
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0017| expenditure pursuant to the provisions of the Public School
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0018| Capital Outlay Act and forty percent in the lottery tuition
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0019| fund. Estimated net revenues shall be transmitted monthly to
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0020| the state treasurer for deposit in the funds, provided the
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0021| total amount of annual net revenues for the fiscal year shall
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0022| be transmitted no later than August 1 each year.
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0023| C. In determining net revenues, operating expenses
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0024| of the lottery include all costs incurred in the operation and
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0025| administration of the lottery and all costs resulting from any
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0001| contracts entered into for the purchase or lease of goods or
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0002| 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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0004| audit services, independent studies, data transmission,
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0005| advertising, promotion, incentives, public relations,
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0006| communications, commissions paid to lottery retailers,
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0007| printing, distribution of tickets, purchases of annuities or
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0008| investments to be used to pay future installments of winning
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0009| lottery tickets, debt service and payment of any revenue bonds
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0010| issued, contingency reserves, transfers to the reserve fund and
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0011| any other necessary costs incurred in carrying out the
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0012| provisions of the New Mexico Lottery Act. Operating expenses
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0013| of the lottery shall not exceed twelve percent of the gross
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0014| annual revenue of the lottery.
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0015| D. An amount up to two percent of the gross annual
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0016| revenues shall be set aside as a reserve fund to cover bonuses
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0017| and incentive plans for lottery retailers, special promotions
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0018| for retailers, purchasing special promotional giveaways,
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0019| sponsoring special promotional events, compulsive gambling
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0020| rehabilitation and such other purposes as the board deems
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0021| necessary to maintain the integrity and meet the revenue goals
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0022| of the lottery. The board shall report annually to the
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0023| governor and each regular session of the legislature on the use
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0024| of the money in the reserve fund. Any balance in excess of
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0025| fifty thousand dollars ($50,000) at the end of any fiscal year
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0001| shall be transferred to the lottery tuition fund."
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0002| Section 3. EFFECTIVE DATE.--The effective date of the
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0003| provisions of this act is July 1, 1997.
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0004|
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0005|
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0006| FORTY-THIRD LEGISLATURE
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0007| FIRST SESSION, 1997
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0008|
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0009|
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0010| March 5, 1997
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0011|
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0012| Mr. President:
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0013|
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0014| Your PUBLIC AFFAIRS COMMITTEE, to whom has been
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0015| referred
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0016|
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0017| SENATE BILL 751
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0018|
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0019| has had it under consideration and reports same with
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0020| recommendation that it DO PASS, and thence referred to the
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0021| FINANCE COMMITTEE.
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0022|
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0023| Respectfully submitted,
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0024|
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0025|
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0001|
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0002|
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0003| __________________________________
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0004| Shannon Robinson, Chairman
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0005|
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0006|
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0007|
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0008| Adopted_______________________ Not
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0009| Adopted_______________________
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0010| (Chief Clerk) (Chief Clerk)
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0011|
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0012|
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0013| Date ________________________
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0014|
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0015|
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0016| The roll call vote was 5 For 0 Against
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0017| Yes: 5
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0018| No: 0
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0019| Excused: Garcia, Ingle, Vernon, Smith
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0020| Absent: None
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0021|
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0022|
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0023|
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0024|
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0025| S0751PA1
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0001|
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0002|
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0003| FORTY-THIRD LEGISLATURE SB 751/a
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0004| FIRST SESSION, 1997
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0005|
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0006|
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0007| March 20, 1997
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0008|
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0009| Mr. President:
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0010|
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0011| Your FINANCE COMMITTEE, to whom has been referred
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0012|
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0013| SENATE BILL 751
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0014|
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0015| has had it under consideration and reports same with
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0016| recommendation that it DO PASS, amended as follows:
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0017|
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0018| 1. On page 2, line 10, strike "twelve" and insert in lieu
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0019| thereof "twenty".
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0020|
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0021| 2. On page 2, line 11, before the semicolon insert "in
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0022| fiscal year 1998, eighteen percent in fiscal year 1999 and
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0023| sixteen percent in fiscal year 2000 and each fiscal year
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0024| thereafter".
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0025|
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0001| 3. On page 4, line 12, strike "twelve" and insert in lieu
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0002| thereof "twenty", and before the period insert "in fiscal year
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0003| 1998, eighteen percent in fiscal year 1999 and sixteen percent in
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0004| fiscal year 2000 and each fiscal year thereafter".
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0005|
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0006| 4. On page 4, line 24, strike the closing quotation mark
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0007| and between lines 24 and 25, insert the following new subsection:
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0008|
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0009| "E. If operating expenses of the lottery for any fiscal
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0010| year are less than the maximum allowed by law, ten percent of the
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0011| amount of the difference between actual operating expenses and
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0012| the maximum allowed shall be used to provide bonuses to lottery
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0013| employees. Bonuses shall be distributed in accordance with a
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0014| bonus plan adopted by the board that sets bonus amounts
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0015| commensurate with an employee's cost-savings responsibility. No
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0016| bonus for any one employee shall exceed ten thousand dollars
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0017| ($10,000). The remaining amount of cost-savings realized shall
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0018| be considered net revenues for distribution as provided in this
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0019| section."".
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0020|
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0024|
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0001|
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0002|
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0003|
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0004|
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0005|
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0006|
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0007| Respectfully submitted,
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0008|
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0009|
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0010|
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0011|
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0012| __________________________________
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0013| Ben D. Altamirano, Chairman
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0014|
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0015|
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0016|
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0017| Adopted_______________________ Not
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0018| Adopted_______________________
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0019| (Chief Clerk) (Chief Clerk)
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0020|
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0021|
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0022| Date ________________________
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0023|
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0024|
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0025| The roll call vote was 7 For 0 Against
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0001| Yes: 7
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0002| No: None
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0003| Excused: Aragon, Ingle, McKibben, Smith
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0004| Absent: None
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0005|
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0006|
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0007| S0751FC1 119042.1
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0008|
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