New Jersey § 5:9-7

§ 5:9-7.

The commission shall have the power, and it shall be its duty: a. After full and thorough study of the report and recommendations of the State Lottery

Planning Commission established pursuant to Joint Resolution Number 11, approved November

20, 1969, and such other pertinent information as may be available, to promulgate

such rules and regulations governing the establishment and operation of a State lottery

as it deems necessary and desirable in order that the mandate of the people expressed

in their approval of the amendment to Article IV, Section VII, paragraph 2, of the Constitution in the general election of November, 1969, may be fully implemented, in order that

such a lottery shall be initiated at the earliest feasible and practicable time, and

in order that such lottery shall produce the maximum amount of net proceeds for State

institutions and State aid for education consonant with the dignity of the State and

the general welfare of the people. Such rules and regulations may include, but shall not be limited to, the following: (1) The type of lottery to be conducted. (2) The price, or prices, of tickets or shares in the lottery. (3) The number and sizes of the prizes on the winning tickets or shares. (4) The manner of selecting the winning tickets or shares. (5) The manner of payment of prizes to the holders of winning tickets or shares, including,

subject to the approval of the State Treasurer, provision for payment of prizes not

to exceed $599.00 by agents licensed hereunder out of moneys received from sales of

tickets or shares. (6) The frequency of the drawings or selections of winning tickets or shares, without

limitation. (7) Without limit as to number, the type or types of locations at which tickets or

shares may be sold. (8) The method to be used in selling tickets or shares. (9) The licensing of agents to sell tickets or shares, provided that no person under

the age of 21 shall be licensed as an agent. (10) The manner and amount of compensation, if any, to be paid licensed sales agents

necessary to provide for the adequate availability of tickets or shares to prospective

buyers and for the convenience of the public. (11) The apportionment of the total proceeds accruing from the sale of lottery tickets

or shares and from all other sources among (a) the payment of prizes to the holders

of winning tickets or shares, (b) the payment of costs incurred in the operation and

administration of the lottery, including the expenses of the division and the costs

resulting from any contract or contracts entered into for promotional, advertising

or operational services or for the purchase or lease of lottery equipment and materials,

(c) for the repayment of the money appropriated to the State Lottery Fund pursuant

to section 23 of this act, 1 and (d) for transfer to the general fund for State institutions and State aid for

education; provided, however, that no less than 30% of the total proceeds accruing

from the sale of lottery tickets or shares shall be dedicated to (d) above. During the term of the lottery contribution made pursuant to section 4 of P.L.2017, c. 98 ( C.5:9-22.8 ), the apportionment of the total proceeds accruing from the sale of lottery tickets

or shares and from all other sources among (a) the payment of prizes to the holders

of winning tickets or shares, (b) the payment of costs incurred in the operation and

administration of the Lottery Enterprise, as defined in section 3 of P.L.2017, c. 98 ( C.5:9-22.7 ), including the expenses of the division and the costs resulting from any contract

or contracts entered into for promotional, advertising, or operational services for

the purchase or lease of lottery equipment and materials, and (c) for transfer to

the investment account of Common Pension Fund L, for the benefit of retirement systems,

as provided in the “Lottery Enterprise Contribution Act,” P.L.2017, c. 98 ( C.5:9-22.5 et al.); provided, however, that no less than 30 percent of the proceeds accruing

from the sale of lottery tickets or shares shall be dedicated to the investment account

under (c) above. (12) Such other matters necessary or desirable for the efficient and economical operation

and administration of the lottery and the Lottery Enterprise and for the convenience

of the purchasers of tickets or shares and the holders of winning tickets or shares. Notwithstanding the provisions of any other law to the contrary, no rule or regulation

establishing a lottery game shall be considered an “administrative rule” or “rule”

pursuant to P.L.1968, c. 410 ( C.52:14B-1 et seq. ). b. To amend, repeal, or supplement any such rules and regulations from time to time

as it deems necessary or desirable , and to establish by regulation that holders of winning tickets or shares may choose

to remain anonymous indefinitely and that the identity of a holder choosing such option

shall not be included under materials available to public inspection pursuant to P.L.1963,

c. 73 ( C.47:1A-1 et seq. ). Nothing in this subsection shall be construed to prevent the conduct of data exchange

among authorized State entities for the purpose of implementing the provisions of P.L.1991, c. 384 ( C.5:9-13.1 et seq. ) concerning the collection of child support arrears or certain public assistance

overpayments; P.L.1997, c. 306 ( C.5:9-13.10 et seq. ) concerning the collection of delinquent or defaulted student loan payments; P.L.2007, c. 106 ( C.5:9-13.17 et seq. ) concerning the payment of certain debts to State agencies; or of any other law

providing for the collection of any debts or other payments from lottery winnings . Notwithstanding any provision of the “Administrative Procedure Act,” P.L.1968, c.

410 ( C.52:14B-1 et seq. ), to the contrary, the commission may adopt, immediately upon filing with the Office

of Administrative Law, such regulations as are necessary to implement the provisions

of the “Lottery Enterprise Contribution Act,” P.L.2017, c. 98 ( C.5:9-22.5 et al.), which shall be effective for a period not to exceed 12 months following

adoption, and may thereafter be amended, adopted, or readopted by the commission in

accordance with the requirements of the “Administrative Procedure Act,” P.L.1968,

c. 410 ( C.52:14B-1 et seq. ). c. To advise and make recommendations to the director regarding the operation and

administration of the lottery and the Lottery Enterprise. d. To report monthly to the Governor and the Legislature pursuant to section 2 of P.L.1991, c. 164 ( C.52:14-19.1 ), and during the lottery contribution, to the Director of the Division of Investment,

the total lottery proceeds, prize disbursements and other expenses for the preceding

month, and to make an annual report, which shall include a full and complete statement

of lottery proceeds, prize disbursements and other expenses, to the Governor, the

Legislature, and during the lottery contribution, the Director of the Division of

Investment, including such recommendations for changes in this act as it deems necessary

or desirable. e. To report immediately to the Governor and the Legislature pursuant to section 2

of P.L.1991, c. 164 ( C.52:14-19.1 ), and during the lottery contribution, to the Director of the Division of Investment,

any matters which shall require immediate changes in the laws of this State in order

to prevent abuses and evasions of this act or rules and regulations promulgated thereunder

or to rectify undesirable conditions in connection with the administration or operation

of the lottery and the Lottery Enterprise. f. To carry on a continuous study and investigation of the lottery and the Lottery

Enterprise throughout the State, which may include requiring a financial or operational

audit of the Lottery Enterprise, (1) for the purpose of ascertaining any defects in

this act or in the rules and regulations issued thereunder by reason whereof any abuses

in the administration and operation of the lottery and the Lottery Enterprise or any

evasion of this act or the rules and regulations may arise or be practiced, (2) for

the purpose of formulating recommendations for changes in this act and the rules and

regulations promulgated thereunder to prevent such abuses and evasions, (3) to guard

against the use of this act and the rules and regulations issued thereunder as a cloak

for the carrying on of organized gambling and crime, and (4) to insure that said law

and rules and regulations shall be in such form and be so administered as to serve

the true purposes of this act and the “Lottery Enterprise Contribution Act,” P.L.2017, c. 98 ( C.5:9-22.5 et al.). g. To make a continuous study and investigation of (1) the operation and the administration

of similar laws which may be in effect in other states or countries, (2) any literature

on the subject which from time to time may be published or available, (3) any Federal

laws which may affect the operation of the lottery and the Lottery Enterprise, and

(4) the reaction of New Jersey residents to existing and potential features of the

lottery and the Lottery Enterprise, with a view to recommending or effecting changes

that will tend to serve the purposes of this act. 1

Appropriation.