Vermont § 674 - Procedures and conditions governing the tri-state lottery—Article II A. Creation of the Tri-State Lotto Commission.

§ 674. Procedures and conditions governing the tri-state lottery—Article II A. Creation of the Tri-State Lotto Commission.

• The party states, for the purpose of operating Tri-State Lotto, establish the Tri-State
  Lotto Commission. B. Nature of the Commission. The Commission shall be an interstate body, both corporate and politic, serving as
  a common agency of the party states and representing them both collectively and individually
  in the exercise of its powers and duties. C. Organization of the Commission. The Commission shall be composed of one member from each of the party states. Each
  party state lottery or sweepstakes commission shall appoint one of its members to
  serve on the Tri-State Lotto Commission. Each member shall hold office at the pleasure
  of the appointing authority. The Commission shall elect a chair from among its members
  annually. D. Functioning of the Commission. 1. The Commission’s functions shall be performed and carried out by its members and by
  advisory committees or panels as the Commission may establish, and by officers, independent
  contractors, agents, employees, and consultants as may be appointed by the Commission.
  All officers, independent contractors, agents, consultants, and employees shall hold
  office at the pleasure of the Commission, unless the Commission otherwise decides,
  and the Commission shall prescribe their powers, duties, and qualifications and fix
  their compensation and other terms of their employment. 2. No action of the Commission shall be effective or binding unless there is a unanimous
  decision by all of the representatives of the various party states. 3. The members of the Commission shall receive compensation for their services pursuant
  to this Compact and in accordance with the policies of the respective states, and
  they shall be entitled to be reimbursed for the expenses they naturally and necessarily
  incur in the performance of their duties. 4. No member of the Commission who is otherwise a public officer or employee shall suffer
  a forfeiture of his or her office or employment, or any loss or diminution in the
  rights and privileges pertaining to their office or employment, by reason of membership
  on the Commission. E. Powers and duties of the Commission. 1. The Commission shall have the power and it shall be its duty to operate and administer
  Tri-State Lotto and to promulgate rules and regulations governing the establishment
  and operation of the lotto, including but not limited to the following topics: a. the design of the game; b. the price of the tickets; c. the number and sizes of the prizes on the winning tickets; d. the manner of selecting the winning tickets and paying the prizes; e. the frequency of the drawings; f. the type or types of locations at which tickets may be sold; g. the method to be used in selling tickets; h. the compensation required to be paid to Tri-State Lotto sales agents in order to assure
  adequate availability of tickets and public convenience in purchasing tickets; and i. the development of an internal security plan designed to prevent player fraud. 2. The Commission or its designee shall also have the power and it shall be its duty
  to license sales agents to sell Tri-State Lotto tickets, in accordance with paragraph
  G of this article. The Commission may require a bond from any licensed agent in an
  amount to be determined by the Commission. 3. The Commission shall make monthly and year-end reports to the commissions of the party
  states, which shall include a complete statement of Tri-State Lotto revenues, prize
  disbursements and other expenses, and any other information the party states may require. 4. All Tri-State Lotto accounts and transactions shall be subject to annual postaudits
  conducted by independent auditors retained by the Commission for this purpose. 5. In addition to the powers enumerated above, the Commission shall have the power to
  adopt a corporate seal and enter into contracts, including but not limited to contracts
  with other governments or agencies, to hire, lease, acquire, and dispose of property
  to the extent necessary to carry out its functions, powers, and duties as set forth
  in this section, and to expend or authorize expenditures of monies for the purpose
  of operating Tri-State Lotto pursuant to this Compact. The party states each shall
  have the right to require an audit as a party state may from time to time consider
  proper. 6. The Commission also shall have additional powers, incidental to the express powers
  granted to it by this Compact, as may be necessary or proper for the effective performance
  of its functions. F. Cooperation and assistance of other agencies. To avoid duplication of effort and in the interests of economy, the Commission may
  make use of existing studies, plans, data, and other materials in the possession of
  the governmental agencies of the party states and their respective political subdivisions.
  Each agency is authorized to make these materials available to the Commission and
  otherwise to assist it in the performance of its functions. The officers and personnel
  of these agencies, and of any other government or agency, may serve at the request
  of the Commission upon advisory committees and panels as the Commission creates; and
  the officers and personnel may serve upon the committees and panels without forfeiture
  of office or employment and with no loss or diminution in the status, rights, and
  privileges that they otherwise enjoy. G. Licensing of Tri-State Lotto sales agents. 1. The Commission or its designee may license as agents to sell Tri-State Lotto tickets
  those persons as in its opinion will best serve the public convenience, except that
  no license shall be issued to any person to engage in business exclusively as a sales
  agent. 2. For purposes of this article, the term “person” shall be construed to mean and include
  an individual, partnership, association, organization, club, company, corporation,
  trust, estate, society, joint stock company, receiver, trustee, assignee, referee,
  or any other person acting in a fiduciary or representative capacity, whether appointed
  by a court or otherwise, and any combination of individuals. “Person” shall also
  be construed to mean and include agencies and instrumentalities of the state, and
  counties, cities, towns, and villages. 3. Before issuing a license to any person, the Commission shall consider with respect
  to the person: a. financial responsibility and the security of the business or activity in which the
  person is engaged; b. accessibility of the place of business or activity to the public; c. sufficiency of existing licenses to serve public convenience; d. whether the place of business or activity is predominantly frequented by persons under
  the age of 18 years; e. volumes of expected sales; and f. the possession of a valid party state license. H. Suspension and revocation of licenses. 1. The Commission may suspend or revoke, after notice and hearing, any license issued
  pursuant to this Compact. The license may, however, be temporarily suspended by the
  Commission without prior notice, pending any prosecution, investigation, or hearing.
  A license may be suspended or revoked by the Commission for just cause, including
  one or more of the following reasons: a. failure to account for tickets received or the proceeds of the sale of tickets or
  to file a bond if required by the Commission or to comply with instructions of the
  Commission concerning the licensed activity; b. conviction of any criminal offense; c. failure to file any return or report, to keep records, or to pay any tax; d. engaging in fraud, deceit, misrepresentation, or conduct prejudicial to public confidence; e. insufficiency of the number of tickets sold by the sales agent; and f. a material change, since issuance of the license, with respect to any of the matters
  required to be considered by the Commission under paragraph G.3 of this article. 2. Any suspension or revocation of a state license shall automatically result in suspension
  of the Tri-State license. I. Inapplicability of other statutes. 1. No law providing for any penalty or disability for the sale of lottery tickets or
  any acts done in connection with a lottery shall apply to the sale of tickets or acts
  performed pursuant to this Compact. 2. The provisions of this Compact shall apply and take precedence in the event of any
  conflict between the provisions contained in this Compact and the provisions of other
  laws of any of the party states. J. Sale of tickets prohibited. 1. No ticket shall be sold at a price greater than those fixed by the Commission; nor
  shall a sale be made by any person other than a licensed sales agent. Any person who
  violates any of these provisions shall be subject to the sanctions of each respective
  party state’s lottery statutes. 2. No ticket shall be sold to any person under the age of 18 years, but this shall not
  be deemed to prohibit the purchase of a ticket for the purpose of making a gift by
  a person 18 years of age or older to a person less than that age. Any licensee or
  the employee or agent of any licensee who sells or offers to sell a ticket to any
  person under the age of 18 shall be subject to the sanctions of each respective party
  state’s lottery statutes. 3. No ticket shall be sold to and no prize shall be paid to any of the following persons: a. any member, officer, or employee of the Commission; or b. any spouse, child, brother, sister, or parent residing as a member of the same household
  in the principal place of abode of any of the foregoing persons. K. Collection and disposition of revenue. 1. All monies received by any and all Tri-State Lotto sales agents from the sales of
  Tri-State Lotto tickets, less the amount, if any, retained pursuant to paragraph E.1.h
  of this article shall be delivered weekly to the commission of the party state in
  which the sales were made. 2. Within one week after a Tri-State Lotto drawing has been held, the party state commission
  shall pay to the Commission, who in turn shall promptly pay to an account known as
  the Tri-State Lotto Prize Account, monies as are necessary for the payment of prizes,
  less actual prizes paid by the respective party state in the preceding week, but not
  to exceed 50 percent of the total amount for which tickets have been sold. 3. Interest earned by the Tri-State Lotto Prize Account shall accrue to the party states
  in direct proportion to their contribution to the account. Distribution shall be made
  at least semi-annually. 4. The withdrawals, pursuant to paragraph L of this article, of monies from the Tri-State
  Lotto Prize Account deposited by the Commission shall be subject to a check signed
  by a member of the Commission or such officer, employee, or agent of the Commission
  as the Commission may designate. The monies in the Prize Payment Account shall be
  paid out of the account on vouchers certified or approved by the Commission or its
  designated officer, agent, or employee. 5. The Commission shall receive from party states, within one week after a Tri-State
  Lotto drawing, an additional sum of monies not to exceed 15 percent of the total amount
  for which tickets have been sold. The monies shall be deposited in a bank, banking
  house, or trust company selected by the Commission in an account to be named the Tri-State
  Lotto Operations Account. The Operations Account shall be used to pay Tri-State Lotto
  current operating costs which shall be charged proportionally to the party states.
  If operating costs exceed or fall short of the amount obtained in the account, appropriate
  adjustments shall be made on a quarterly basis within 30 days of the end of each quarter. 6. Interest earned by the Tri-State Lotto Operations Account shall accrue to the party
  states in direct proportion to their contribution to the account. Distribution shall
  be made at least semi-annually. L. Distribution of prizes. 1. All prizes over 5,000 dollars shall be awarded to holders of winning tickets as provided
  in this section. Within one week after any drawing or selection of prize-winning tickets,
  the Commission shall deliver to each of the party states a certified list of the tickets
  to which prizes are awarded and the amount of each prize. Upon delivery of the certified
  list and voucher of the Commission, monies sufficient for the payment of the prizes
  may be withdrawn from the Prize Account established in paragraph K.2 of this article.
  The Commission shall each month provide each party state with a record of all withdrawals.
  Payment of prizes shall be made by the Commission or its designee to holders of the
  tickets to which prizes are awarded. The right of any person to a prize drawn shall
  not be assignable, except that payment of any prize drawn may be paid to another person
  as provided in this section. 1A. Payment of a prize may be made to a person other than the winner as follows: a. To the estate of a deceased prizewinner upon receipt by the Commission of a certified
  court order appointing an executor or administrator. b. To any person pursuant to a certified final order of a court of competent jurisdiction,
  including orders pertaining to claims of ownership in the prize, division of marital
  property in divorce actions, bankruptcy, child support, appointment of a guardian
  or conservator, and distribution of an estate. c. To any person, including a trustee, pursuant to a certified final order of a court
  of competent jurisdiction of a party state approving the voluntary assignment of the
  right to a prize, provided the court affirmatively finds all of the following: