Rhode Island § 42-61-15 - State Lottery

§ 42-61-15. State lottery fund.

(a) There is created the state lottery fund, into which shall be deposited all revenues received by the division from the sales of lottery tickets and license fees. The fund shall be in the custody of the general treasurer, subject to the direction of the division for the use of the division, and money shall be disbursed from it on the order of the controller of the state, pursuant to vouchers or invoices signed by the director and certified by the director of administration. The moneys in the state lottery fund shall be allotted in the following order, and only for the following purposes:

(1) Establishing a prize fund from which payments of the prize awards shall be disbursed to holders of winning lottery tickets on checks signed by the director and countersigned by the controller of the state or his or her designee.

(i) The amount of payments of prize awards to holders of winning lottery tickets shall be determined by the division, but shall not be less than forty-five percent (45%) nor more than seventy-one percent (71%) of the total revenue accruing from the sale of lottery tickets;

(ii) For the lottery game commonly known as “Keno,” the amount of prize awards to holders of winning Keno tickets shall be determined by the division, but shall not be less than forty-five percent (45%) nor more than seventy-two percent (72%) of the total revenue accruing from the sale of Keno tickets;

(2) Payment of expenses incurred by the division in the operation of the state lotteries including, but not limited to, costs arising from contracts entered into by the director for promotional, consulting, or operational services, salaries of professional, technical, and clerical assistants, and purchases or lease of facilities, lottery equipment, and materials; provided however, solely for the purpose of determining revenues remaining and available for transfer to the state’s general fund, expenses incurred by the division in the operation of state lotteries shall reflect (i) Beginning in fiscal year 2015, the actuarially determined employer contribution to the Employees’ Retirement System consistent with the state’s adopted funding policy; and (ii) Beginning in fiscal year 2018, the actuarially determined employer contribution to the State Employees and Electing Teachers’ OPEB System consistent with the state’s adopted funding policy. For financial reporting purposes, the state lottery fund financial statements shall be prepared in accordance with generally accepted accounting principles as promulgated by the Governmental Accounting Standards Board; and

(3) Payment into the general revenue fund of all revenues remaining in the state lottery fund after the payments specified in subsections (a)(1) — (a)(2) of this section.

(b) The auditor general shall conduct an annual post audit of the financial records and operations of the lottery for the preceding year in accordance with generally accepted auditing standards and government auditing standards. In connection with the audit, the auditor general may examine all records, files, and other documents of the division, and any records of lottery sales agents that pertain to their activities as agents, for purposes of conducting the audit. The auditor general, in addition to the annual post audit, may require or conduct any other audits or studies the auditor general deems appropriate, the costs of which shall be borne by the division.

(c) Payments into the state’s general fund specified in subsection (a)(3) of this section shall be made on an estimated quarterly basis. Payment shall be made on the tenth business day following the close of the quarter except for the fourth quarter when payment shall be on the last business day.