1998 Regular Session
By: Senator(s) Jackson
Senate Bill 3045
AN ACT TO PROVIDE FOR THE ESTABLISHMENT AND OPERATION OF A STATE LOTTERY; TO PROVIDE THAT 50% OF THE NET REVENUES OF SUCH LOTTERY SHALL BE APPROPRIATED TO COUNTIES THAT ELECT TO PARTICIPATE IN THE LOTTERY ACCORDING TO POPULATION; TO PROVIDE THE PROCEDURE FOR AN ELECTION TO BE CONDUCTED IN THE COUNTY TO DETERMINE WHETHER THE COUNTY WILL PARTICIPATE IN THE LOTTERY; TO CREATE AND ESTABLISH A MISSISSIPPI LOTTERY CORPORATION TO ADMINISTER THE STATE LOTTERY; TO PROVIDE FOR THE APPOINTMENT OF THE BOARD OF DIRECTORS AND OF THE PRESIDENT OF THE CORPORATION; TO PRESCRIBE THE POWERS AND DUTIES OF THE BOARD OF DIRECTORS, THE CORPORATION AND THE PRESIDENT; TO PROVIDE FOR THE LICENSING AND REGULATION OF RETAILERS SELLING LOTTERY TICKETS; TO PROVIDE FOR MAJOR PROCUREMENTS; TO PROVIDE PENALTIES FOR VIOLATIONS OF THIS ACT; TO AMEND SECTION 25-9-107, MISSISSIPPI CODE OF 1972, TO EXEMPT LOTTERY CORPORATION OFFICERS AND EMPLOYEES FROM STATE PERSONNEL LAWS; TO AMEND SECTION 25-41-7, MISSISSIPPI CODE OF 1972, TO EXEMPT LOTTERY BOARD DISCUSSION WITH RESPECT TO TRADE SECRETS AND LOTTERY SECURITY FROM THE OPEN MEETINGS LAW; TO AMEND SECTION 25-53-25, MISSISSIPPI CODE OF 1972, TO EXEMPT THE LOTTERY CORPORATION FROM THE OVERSIGHT AND CONTROL OF THE MISSISSIPPI DEPARTMENT OF INFORMATION TECHNOLOGY SERVICES; TO AMEND SECTION 27-65-111, MISSISSIPPI CODE OF 1972, TO EXEMPT FROM TAXATION THE SALE OF LOTTERY TICKETS; TO AMEND SECTION 31-7-13, MISSISSIPPI CODE OF 1972, TO EXEMPT CERTAIN MAJOR PROCUREMENTS BY THE LOTTERY CORPORATION FROM THE PUBLIC PURCHASING LAWS; TO AMEND SECTIONS 67-1-71, 75-76-5, 97-33-9 THROUGH 97-33-13, 97-33-21, 97-33-23 AND 97-33-31 THROUGH 97-33-49, MISSISSIPPI CODE OF 1972, IN CONFORMITY TO THE PROVISIONS OF THIS ACT; AND FOR RELATED PURPOSES.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:
SECTION 1. This act shall be known and may be cited as the Mississippi Lottery Act.
SECTION 2. It is the intent of this act that the lottery established by this act shall be self-supporting and revenue-raising. No appropriations, loans or other transfer of state funds shall be made to the Mississippi Lottery Corporation except for initial start-up costs of the lottery as provided in this act.
SECTION 3. (1) Fifty percent (50%) of the net revenues of the lottery shall be appropriated by the Legislature to each county of the state that elects to participate in the lottery, as provided for in this section, based on the ratio that the population of each county bears to the total population of all counties participating in the lottery according to the latest federal decennial census.
(2) (a) Except as otherwise provided in subsection (3) of this section, a county may participate in the lottery only after an affirmative vote to do so at an election called and conducted in the manner prescribed in this subsection.
(b) If a petition is filed with the circuit clerk signed by twenty percent (20%) or fifteen hundred (1500), whichever is less, of the registered voters of a county requesting that the county participate in the lottery, the board of supervisors of such county shall authorize the circuit clerk to hold an election on the proposition of allowing the lottery to be conducted in the county. The referendum shall be held not less than thirty (30) days nor more than sixty (60) days after the certification by the circuit clerk to the board of supervisors of signatures and of the percentage; however, if the petition is certified within ninety (90) days of a general election, the referendum shall be held at the same time as the general election. The referendum shall be advertised, held and conducted and the result thereof canvassed in the manner provided by law for advertising, holding and canvassing county elections.
(c) At such election, all qualified electors of such county may vote. The ballots used at such election shall have printed thereon a brief statement of the purpose of the election and the words "FOR A LOTTERY IN THE COUNTY AS PRESCRIBED BY LAW" and "AGAINST A LOTTERY IN THE COUNTY AS PRESCRIBED BY LAW." The voter shall vote by placing a cross (x) or check mark (/) opposite his choice on the proposition. If a majority of the qualified electors who vote in such election shall vote in favor of allowing the lottery to be conducted in the county, then the lottery may henceforth be conducted in the county as prescribed by law. If less than a majority of the qualified electors who vote in such election shall vote in favor of allowing the lottery to be conducted in the county as prescribed by law, the lottery shall be prohibited in the county and no subsequent election shall be held for one (1) year.
(3) The lottery shall not be conducted in any county in which gaming is conducted under the Mississippi Gaming Control Act.
SECTION 4. The lottery shall be operated at all times with the objective of raising the maximum net revenues. This objective shall at all times be considered when allocating revenues for the payment of prizes and expenses of the lottery. Unclaimed prize money payable by the lottery, as described in this act, shall revert to the lottery to be distributed as determined by the corporation.
SECTION 5. As used in this act unless the context requires otherwise:
(a) "Corporation" means the Mississippi Lottery Corporation;
(b) "Lottery" means any game of chance approved by the corporation and operated pursuant to this act;
(c) "Major procurement" means any gaming product or service including, but not limited to, major advertising contracts, annuity contracts, prize payment agreements, consulting services, equipment, tickets and other products and services unique to the Mississippi lottery, but not including materials, supplies, equipment and services common to the ordinary operations of a corporation;
(d) "President" means the President of the Mississippi Lottery Corporation who shall also serve as chief executive officer of the corporation;
(e) "Retailer" means any person with whom the corporation has contracted to sell lottery tickets to the public;
(f) "Security" means the protection of information that would provide an unfair advantage to any individual involved in the operation of the lottery, as well as measures taken to prevent crimes against the corporation and its retailers; and
(g) "Vendor" means any person who has entered into a major procurement contract with the corporation.
SECTION 6. There is hereby created and established a state lottery which shall be conducted in each county that elects to participate pursuant to this act, and which shall be administered by a corporation and political subdivision of the State of Mississippi which shall be a public body corporate and politic to be known as the Mississippi Lottery Corporation. This corporation shall be managed in a manner that enables the people of the state to benefit from its profits and to enjoy the best possible lottery games. The Legislature hereby recognizes that the operations of a lottery are unique activities for state government and that a corporate structure will best enable the lottery to be managed in an entrepreneurial and business-like manner. It is the intent of the Legislature that government programs and services shall not be mentioned in advertising or promoting a lottery. It is also the intent of the Legislature that the Mississippi Lottery Corporation shall be accountable to the Governor, the Legislature and the people of the state through a system of audits, reports and thorough financial disclosure as required by this act.
SECTION 7. (1) The affairs of the corporation shall be administered by a board of directors composed of five (5) members. Three (3) members shall be appointed by the Governor, one (1) resident from each of three (3) Supreme Court districts. The Lieutenant Governor shall appoint two (2) members from the state at large. All appointments shall be subject to the advice and consent of the Senate.
Members appointed when the Senate is not in session shall serve only until the next regular session, or special session if such matter is included in the call therefor of the Legislature, at which time they shall be subject to confirmation by the Senate. Should the Senate refuse to confirm a member then he shall forfeit his office as of the date on which the Senate refuses to confirm him. Any person not confirmed by the Senate shall not be reappointed as a member for a period of two (2) years. Members appointed and confirmed by the Senate shall be residents of the State of Mississippi and serve a term of five (5) years, except that of the initial members appointed, one (1) shall be appointed by the Governor for a term ending on the first day of December 1998; one (1) shall be appointed by the Governor for a term ending on the first day of December 1999; one (1) shall be appointed by the Governor for a term ending on the first day of December 2000; one (1) shall be appointed by the Lieutenant Governor for a term ending on the first day of December 2001; and one (1) shall be appointed by the Lieutenant Governor for a term ending on the first day of December 2002.
Members may serve thirty (30) days beyond the end of their respective terms if their successors have not been appointed and qualified. If the appointing official fails to appoint a successor within thirty (30) days of expiration of a member's term, the board shall make the appointment. No member shall serve more than two (2) consecutive five-year terms. Members shall be removed by the Governor for neglect of duty, misfeasance or nonfeasance in office. The Governor shall annually designate a chairman from among the voting members of the board.
(2) Members of the board of directors shall not have any direct or indirect interest in an undertaking that puts their personal interest in conflict with that of the corporation and shall be governed by the provisions of Section 25-4-105, Mississippi Code of 1972.
(3) Members of the board of directors shall be entitled to per diem in an amount as established by Section 25-3-69, Mississippi Code of 1972, for each day engaged in corporate business, and shall be reimbursed for necessary travel and other reasonable expenses incurred in the performance of their official duties.
(4) The board, upon call of the chairman or the president, shall meet at least monthly for the first eighteen (18) months and bi-monthly thereafter and at such other times as the chairman or the president may determine. Three (3) members of the board shall constitute a quorum. The board shall also meet upon call of two (2) or more of the voting members of the board. The board shall keep accurate and complete records of all its meetings.
(5) The president of the corporation shall be appointed by the board subject to confirmation by the Senate. Prior to appointment of the president, the board shall secure a background investigation report conducted by the Department of Public Safety. Should the Senate refuse to confirm the appointment of the board, then the board shall submit another name. The person whose appointment was refused shall not be renamed for confirmation for a period of two (2) years. If the president of the corporation is appointed when the Senate is not in session, he shall serve only until the next regular session, or special session if such matter is included in the call therefor of the Legislature, at which time he shall be subject to confirmation by the Senate. Should the Senate refuse to confirm the president, then he shall forfeit his office as of the date on which the Senate refuses to confirm him. The president of the corporation shall manage the daily affairs of the corporation and shall have such powers and duties as specified by Section 11 of this act and such additional powers as specified by the board of directors. The president shall not be a member of the board. The president of the corporation shall serve at the will and pleasure of the board.
(6) All meetings of the board shall be open unless they may be closed under Section 25-41-7, Mississippi Code of 1972, or relate to trade secrets or the security of lottery operations.
SECTION 8. All records of the corporation shall be deemed public records and subject to public inspection under the provisions of the Mississippi Public Records Act of 1983; provided, however, that such records that involve a trade secret of the corporation or of a vendor and records whose disclosure would endanger the security of the lottery or its retailers shall be exempt from the provisions of the Mississippi Public Records Act of 1983.
SECTION 9. (1) The board of directors shall provide the president with private-sector perspectives on the operation of a large marketing enterprise. The board shall:
(a) Advise and make recommendations with regard to the budget prepared by the president for the operation of the corporation;
(b) Advise and make recommendations with regard to the terms of major lottery procurements recommended by the president;
(c) Serve as a board of appeal for any denial, revocation or cancellation by the president of a contract with a lottery retailer; and
(d) From time to time, advise and make recommendations with regard to administrative regulations which shall be subject to the provisions of Section 25-43-1 et seq., Mississippi Code of 1972, as may be necessary to carry out and implement its powers and duties, the operation of the corporation, the conduct of the lottery games in general, and any other matters necessary or desirable for the efficient and effective operation of the lottery or convenience of the public. The board, upon recommendation of the president, may advise and make recommendations, without recourse to the Administrative Procedures Law unless it so desires, regarding rules for the conduct of specific lottery games, including, but not limited to, rules specifying:
(i) The types of games to be conducted, including, but not limited to, instant lotteries, on-line games and other games traditional to the lottery;
(ii) The sale price of tickets;
(iii) The number and amount of prizes;
(iv) The method and location of selecting or validating winning tickets;
(v) The frequency and the means of conducting drawings which shall be open to the public;
(vi) The manner of payment of prizes;
(vii) The frequency of games and drawings;
(viii) The manner and amount of compensation to lottery retailers, except that all compensation shall be uniform; and
(ix) Any other matters necessary or desirable for the efficient and effective operation of the lottery or for the convenience of the public.
(2) In all matters, the board shall advise and make recommendations. However, the board shall:
(a) Conduct hearings upon complaints charging violations of this act or of administrative regulations adopted by the corporation and shall conduct such other hearings as may be provided by administrative regulation;
(b) Review the performance of the corporation; and
(i) Advise the president and make recommendations to him regarding operations of the corporation; and
(ii) Identify potential improvements in this act, the administrative regulations of the corporation, and the management of the corporation;
(c) Request from the corporation any information the board determines to be relevant to its duties; and
(d) Report to the president of the corporation, the Governor, the Lieutenant Governor, and the Speaker of the House of Representatives regarding its findings and recommendations.
SECTION 10. (1) The corporation shall conduct and administer lottery games which will result in maximization of revenues to the State of Mississippi while at the same time providing entertainment to its citizens. It shall be the duty of the corporation, its employees and the members of the board to provide for an effective operation of lottery games which ensures the integrity of the lottery and maintains the dignity of the state and the general welfare of its citizens. The corporation in pursuit of the attainment of the objectives and the purposes of this act may:
(a) Sue and be sued in its corporate name;
(b) Adopt a corporate seal and a symbol;
(c) Hold copyrights, trademarks and service marks, and enforce its rights with respect thereto;
(d) Appoint agents upon which process may be served;
(e) Enter into written agreements with one (1) or more other states for the operation, marketing and promotion of a joint lottery or joint lottery games;
(f) Acquire real property and make improvements thereon; and
(g) Make, execute and effectuate any and all agreements or contracts including:
(i) Contracts for the purchase of such goods and services as are necessary for the operation and promotion of the state lottery; and
(ii) Contracts to incur debt in its own name and enter into financing agreements with the state, its own agencies, or with a commercial bank, excluding the authority to issue bonds.
(2) The corporation shall:
(a) Supervise and administer the lottery in accordance with the provisions of this act and the administrative regulations adopted by the board;
(b) Submit monthly and annual reports to the Governor, the Lieutenant Governor and the Speaker of the House of Representatives, containing financial statements which include, but are not limited to, disclosure of gross revenues, expenses and net proceeds for the period;
(c) Adopt by administrative regulation, after consultation with the State Auditor's office, a system of continuous internal audits;
(d) Maintain weekly or more frequent records of lottery transactions, including distribution of tickets to lottery retailers, revenues received, claims for prizes, prizes paid, and all other financial transactions of the corporation; and
(e) Adopt by administrative regulation a code of ethics for officers and employees of the corporation to carry out the standards of conduct established by the provisions of this act. The code of ethics adopted shall be in addition to, and as a supplement to, Articles 1 and 3, Chapter 4, Title 25, Mississippi Code of 1972, the provisions of which shall apply to the officers and employees of the corporation.
SECTION 11. (1) The president, as chief executive officer of the corporation, shall direct and supervise all administrative and technical activities in accordance with the provisions of this act and with the administrative regulations adopted by the board. It shall be his duty to:
(a) Supervise and administer the operation of the lottery games;
(b) Employ and direct such personnel as may be necessary to carry out the purposes of this act and utilize such services, personnel or facilities of the corporation as he may deem necessary. As soon as possible after his appointment, the president shall hire a chief security officer. The Department of Public Safety shall conduct a background investigation report prior to the employment of the chief security officer. He may employ by personal service contract and compensate such consultants and technical assistants as may be required to carry out the provisions of this act. The president may, by agreement, secure information and services as he may deem necessary from any department, agency or unit of state government and shall compensate such department, agency or unit of state government for its services. Such agencies, departments or units of state governments shall cooperate with the corporation and provide such information and services as may be required by the corporation to ensure the integrity of the lottery and the effective operation of the lottery games;
(c) Contract in accordance with the administrative regulations of the corporation with persons to sell lottery tickets at retail. The president shall require a bond or bank letter of credit from lottery retailers in such amount as provided by administrative regulations issued by the board;
(d) Make available for inspection by the board or any member of the board, upon request, all books, records, files and other information and documents of his office, and advise the board and recommend such administrative regulations and other matters he deems necessary and advisable to improve the operation and administration of the lottery;
(e) Enter into any contract pursuant to Section 16 of this act with any person, firm or corporation for the promotion and any operation of the lottery, or for the performance of any of the functions as provided in this act or administrative regulations adopted by the board;
(f) Attend meetings of the board or appoint a designee to attend on his behalf; and
(g) On the first day of the regular session of the Legislature in 1999 and annually thereafter, submit the proposed budget of the corporation to the Appropriations Committees of the House of Representatives and of the Senate and to the Executive Director of the Department of Finance and Administration for review and comment. The budget shall be submitted to the Director of the Legislative Budget Office and to the Executive Director of the Department of Finance and Administration within five (5) days of adoption by the corporation for distribution to the Appropriations Committees of the House of Representatives and of the Senate for review.
(2) The president may amend or modify the budget at any time in any manner deemed necessary for the proper operation of the corporation; however, each change shall be reported in writing to the board, the Executive Director of the Department of Finance and Administration, and to the Director of the Legislative Budget Office, who shall transmit a copy of the change to the Appropriations Committees of the House of Representatives and of the Senate.
(3) During his entire term of office, the president shall reside in Mississippi.
(4) The president and the board may conduct an ongoing study of the operation and administration of lotteries in other states or countries, of available literature on the subject, of federal laws and regulations which may affect the operation of the lottery, and of the reaction of citizens of this state to existing or proposed features of lottery games, with a view toward implementing improvements that will tend to serve the purposes of this act.
(5) The president also:
(a) Shall require bond from corporate employees with access to corporate funds or lottery funds, in such an amount as provided in the administrative regulations of the board. The president may also require bond from other employees as he deems necessary; and
(b) May, for good cause, suspend, revoke or refuse to renew any contract entered into in accordance with the provisions of this act or the administrative regulations of the board.
(6) The president shall engage an independent firm experienced in demographic analysis to conduct a special study which shall ascertain the demographic characteristics of the players of each lottery game, including, but not limited to, their income, age, sex, education and frequency of participation. This report shall be presented to the board, the Governor, the Lieutenant Governor, the Speaker of the House of Representatives and the Legislature. Similar studies shall be conducted after the first such study from time to time as determined by the president.
(7) The president shall engage an independent firm experienced in the analysis of advertising, promotion, public relations, and other aspects of communications to conduct a special study of the effectiveness of such communications activities by the lottery and make recommendations to the board on the future conduct and future rate of expenditure for such activities. This report shall be presented to the board, the Governor, the Lieutenant Governor, the Speaker of the House of Representatives and the Legislature. Similar studies shall be conducted from time to time after the first such study as determined by the president.
(8) The president shall, in addition to all other security measures, engage a firm experienced in security procedures, including, but not limited to, computer security and systems security, to conduct a continuing comprehensive study and evaluation of all aspects of security in the operation of the lottery. Such study shall include, but not be limited to: personnel security; lottery game retailer security; lottery contractor security; security of manufacturing operations of lottery contractors; security against ticket counterfeiting and alteration and other means of fraudulently winning; security of drawings among entries or finalists; computer security; data communications security; data base security; systems security; lottery premises and warehouse security; security in distribution; security involving validations and payment procedures; security involving unclaimed prizes; security aspects applicable to each particular lottery game; security of drawings in games where winners are determined by drawings of numbers; the completeness of security against locating winners in lottery games with pre-printed winners by persons involved in their production, storage, distribution, administration or sales; and any other aspects of security applicable to any particular lottery game and to the lottery and its operation. The portion of the security audit report containing the overall evaluation of the lottery in terms of each aspect of security shall be presented to the board, the Governor, the Lieutenant Governor, the Speaker of the House of Representatives and the Legislature. Notwithstanding other provisions of Mississippi law, the portion of the security audit report containing specific recommendations shall be confidential and shall be presented only to the president, the board, the Attorney General, and the Governor.
SECTION 12. (1) The corporation shall establish and maintain a personnel program for its employees. Employees of the corporation shall serve at the pleasure of the president who shall determine their compensation and benefits. The employees shall be subject to suspension, dismissal, reduction in pay, demotion, transfer or other personnel action at the discretion of the president. Such personnel actions shall be exempt from the provisions of the state personnel system as established in Section 25-9-101 et seq., Mississippi Code of 1972.
(2) No officer or employee of the corporation shall have a financial interest in any vendor doing business or proposing to do business with the corporation.
(3) No officer or employee of the corporation with decision-making authority shall participate in any decision involving a retailer with whom the officer or employee has a financial interest of five percent (5%) or more.
(4) No officer or employee of the corporation who leaves the employ of the corporation may represent any vendor or lottery retailer before the corporation for a period of two (2) years following termination of employment with the corporation.
(5) A background investigation shall be conducted by the chief security officer of the corporation on every applicant who has reached the final selection process prior to employment by the corporation. Applicants may be fingerprinted as a condition of employment. No person who has been convicted of a felony, bookmaking or other forms of illegal gambling, or of a crime involving moral turpitude, shall be employed by the corporation.
SECTION 13. (1) Any retailer, vendor or applicant for a retailer or vendor contract, aggrieved by an action of the president of the corporation may appeal that decision to the board.
(2) All appeals before the board shall be decided within thirty (30) days of the hearing.
(3) Any person aggrieved by a decision of the board may appeal the decision to the chancery court of the county in which the corporation maintains its headquarters, except that if the person aggrieved is a lottery retailer or an applicant to become a lottery retailer, then the chancery court of the county in which the retailer does, or the applicant would, operate shall have concurrent venue as to such appeal.
(4) The chancery court may reverse the decision of the board only in the event the decision is found to be:
(a) Clearly erroneous;
(b) Arbitrary and capricious;
(c) Procured by fraud; or
(d) A result of misconduct by the board, or a member thereof.
SECTION 14. Whenever a bond is required for the protection of the corporation, letters of credit or other surety approved by the corporation may be utilized in lieu of a bond.
SECTION 15. (1) Any attachments, garnishments or executions authorized and issued pursuant to statute shall be withheld if served upon the process agent of the corporation. This section shall not apply to a retailer.
(2) The corporation shall adopt rules to establish a system of verifying the validity of tickets claimed to win prizes and to effect payment of such prizes, except that:
(a) No prize, nor any portion of a prize, nor any right of any person to a prize awarded shall be assignable. Any prize, or portion thereof, remaining unpaid at the death of a prize winner shall be paid to the estate of such deceased prize winner or to the trustee under a revocable living trust established by the deceased prize winner as settlor, provided that a copy of such a trust has been filed with the corporation along with a notarized letter of direction from the settlor and no written notice of revocation has been received by the corporation prior to the settlor's death. Following such a settlor's death and prior to any payment to such a successor trustee, the corporation shall obtain from the trustee and each trust beneficiary a written agreement to indemnify and hold the corporation harmless with respect to any claims that may be asserted against the corporation arising from payment to or through the trust. Notwithstanding any other provisions of this section, any person, pursuant to an appropriate judicial order, shall be paid the prize to which a winner is entitled.
(b) No ticket shall knowingly be sold to any person under the age of eighteen (18), but this section does not prohibit the purchase of a ticket by a person eighteen (18) years of age or older for the purpose of making a gift to any person of any age. In such case, the corporation shall direct payment to an adult member of the person's family or the legal guardian of the person on behalf of such person. The person named as custodian shall have the same powers and duties as prescribed for a custodian pursuant to the Mississippi Uniform Gifts to Minors Law, being Section 91-19-1 et seq., Mississippi Code of 1972.
(c) No prize shall be paid arising from claimed tickets that are stolen, counterfeit, altered, fraudulent, unissued, produced or issued in error, unreadable, not received or not recorded by the corporation within applicable deadlines, lacking in captions that conform and agree with the play symbols as appropriate to the lottery game involved, or not in compliance with such additional specific rules and public or confidential validation and security tests of the corporation appropriate to the particular lottery game involved.
(d) No particular prize in any lottery game shall be paid more than once; and, in the event of a binding determination that more than one claimant is entitled to a particular prize, the sole remedy of such claimants is the award to each of them of an equal share in the prize.
(e) A holder of a winning cash ticket from a Mississippi lottery game shall claim a prize within three hundred sixty-five (365) days, or for a multistate lottery game within one hundred eighty (180) days, after the drawing in which the prize was won. In any Mississippi lottery game in which the player may determine instantly if he has won or lost, he shall claim a prize within three hundred sixty-five (365) days, or for a multistate lottery game within one hundred eighty (180) days, after the end of the lottery game. In no event shall any person be entitled to any interest payment on any prize. If a valid claim is not made for a prize within the applicable period, the prize shall constitute an unclaimed prize for purposes of subsection (3) of this section.
(f) No prize shall be paid upon a ticket purchased or sold in violation of this act. Any such prize shall constitute an unclaimed prize for purposes of subsection (3) of this section.
(3) Any unclaimed prize money shall be added to the pool from which future prizes are to be awarded or used for special prize promotions.
(4) The corporation is discharged of all liability upon payment of a prize.
(5) No ticket shall be purchased by, and no prize shall be paid to, any of the following persons: any member of the board of directors, or officers or employees, of the corporation or to any spouse, child, brother, sister or parent residing as a member of the same household in the principal place of abode of any such person.
SECTION 16. (1) The corporation shall enter into its contracts after competitive negotiation, bidding or other procedure authorized pursuant to Chapter 7, Title 31, Mississippi Code of 1972, or the corporation shall adopt administrative regulations which are consistent with Chapter 7, Title 31, Mississippi Code of 1972, providing procurement procedures for any type of procurement, including authority to negotiate a reduced price. Such procedures shall be designed to allow the selection of proposals that provide the greatest long-term benefit to the state, the greatest integrity for the corporation, and the best service and products for the public. Provided, that all purchases not classified as a major procurement, as defined in Section 5 of this act, shall be subject to the provisions of Chapter 7, Title 31, Mississippi Code of 1972, being the Mississippi Public Purchasing Law.
(2) In its bidding and negotiation processes the corporation may do its own bidding and procurement, or may utilize the services of the Department of Finance and Administration, or a combination thereof. The president of the corporation may declare an emergency for purchasing purposes.
SECTION 17. (1) All money received by the corporation from the sale of lottery tickets and from all other sources shall be deposited into a corporate operating account established in an approved state depository. The corporation is hereby authorized to use all money in the corporate operating account for the purposes of paying prizes and the necessary expenses of the corporation and dividends to the state. The corporation shall allocate the amount to be paid by the corporation to prizewinners. Such amount in the corporate operating account which
the corporation anticipates will be available for the payment
of prizes on an annuity basis shall be on deposit with an approved state depository or shall be invested in direct United States Treasury obligations. These instruments may be in varying maturities with respect to payment of annuities and may be in book-entry form. It is the intent of the Legislature that it shall be the goal of the corporation to create a precise match
of the income streams of the invested revenues earmarked as
prize monies and the projected outflows of prize monies as annuities. Quarterly, the corporation shall transfer to the Lottery Proceeds Fund the amount of net revenues which the corporation determines are surplus to its needs. Such funds
shall be held in the Lottery Proceeds Fund until the Legislature shall determine the manner in which the funds will be allocated and appropriated; provided, however, that the Legislature shall appropriate fifty percent (50%) of the funds in the manner provided for in Section 3 of this act. The net revenues shall be determined by deducting from gross revenues the payment costs incurred in the operation and administration of the lottery, including the expenses of the corporation 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, fixed capital outlays, and the payment of prizes to the holders of winning tickets. All monies deposited into the corporate operating account shall be invested subject to a policy approved by the State Treasurer, and the corporation shall annually report to the State Treasurer regarding such investments.
(2) The Lottery Proceeds Fund is hereby established in the State Treasury. Net lottery revenues shall be credited to this restricted account as provided in subsection (1) of this section. Monies credited to the Lottery Proceeds Fund shall be invested by the State Treasurer in investments authorized in Section 27-105-33(d)(i-iv) and all earnings from such investments shall accrue to this account. No monies shall be allotted or expended from this account unless pursuant to an appropriation by the Legislature. Monies in the Lottery Proceeds Fund shall not lapse at the close of the state fiscal year.
(3) The State Auditor shall be responsible for a financial postaudit of the books and records of the corporation. The postaudit shall be conducted in accordance with generally accepted auditing standards, shall be paid for by the corporation, and shall be completed within ninety (90) days of the close of the corporation's fiscal year. The State Auditor shall contract with an independent, certified public accountant who meets the qualifications existing to do business within the State of Mississippi to perform the corporation postaudit. The State Auditor shall remain responsible for the annual postaudit, and the corporation shall pay all audit costs. The State Auditor may, at any time, conduct such additional audits, including performance audits, of the corporation as he deems necessary or desirable. Contracts shall be entered into for audit services for a period not to exceed five (5) years, and the same firm shall not receive two (2) consecutive audit contracts. All such audits shall be filed with the Governor, Lieutenant Governor and the Speaker of the House of Representatives. The corporation shall reimburse the State Auditor for the reasonable costs of any audits performed by him. The corporation shall cooperate with the State Auditor by giving employees designated by him access to facilities of the corporation for the purpose of efficient compliance with their respective responsibilities. With respect to any reimbursement that the corporation is required to pay to any agency, the corporation shall enter into an agreement with such agency under which the corporation shall pay to such agency an amount reasonably anticipated to cover such reimbursable expenses in advance of such expenses being incurred.
SECTION 18. (1) The corporation may accept and expend, in accordance with the provisions of this act, such monies as may be appropriated by the Legislature or such monies as may be received from any source, including income from the corporation's operations, for effectuating its corporate purposes including the payment of the initial expenses of administration and operation of the corporation and the lottery.
(2) After the repayment of any appropriated funds provided to the corporation by the state, the corporation shall be self-sustaining and self-funded. Monies in the State General Fund shall not be used or obligated to pay the expenses of the corporation or prizes of the lottery, and no claim for the payment of an expense of the lottery or prizes of the lottery may be made against any monies other than monies credited to the corporate operating account established in Section 17 of this act.
(3) Federally insured financial institutions may be utilized by the corporation to distribute lottery tickets to retailers.
SECTION 19. No person who receives goods, services, monies or rights having monetary value in excess of Fifty Dollars ($50.00) pursuant to any contract with the corporation, and no agent, officer, employee, shareholder or partner of such person, shall pay money, service or other thing of value, to or for the benefit of, any agent, officer or employee of the corporation or to any person having the authority to appoint or to confirm the appointment of any agent, officer or employee of the corporation on account of, in consideration for, or to induce the corporation to enter into the contract.
SECTION 20. (1) (a) The Legislature hereby recognizes that to conduct a successful lottery, the corporation must develop and maintain a statewide network of lottery retailers that will serve the public convenience or promote the sale of tickets, while ensuring the integrity of the lottery.
(b) To govern the selection of lottery retailers, the corporation shall, by administrative regulation, develop a list of objective criteria upon which the selection of lottery retailers shall be based. Separate criteria shall be developed to govern the selection of retailers of instant tickets and on-line retailers. In developing these criteria the corporation shall consider such factors as the applicant's financial responsibility, security of the applicant's place of business or activity, integrity and reputation. The criteria shall include, but not be limited to, the following:
(i) The applicant shall be current in payment of all taxes, interest and penalties owed to any taxing subdivision where the lottery retailer will sell lottery tickets;
(ii) The applicant shall be current in filing all applicable tax returns and in payment of all taxes, interest and penalties owed to the State of Mississippi, excluding items under formal appeal pursuant to applicable statutes;
(iii) No person, partnership, unincorporated association, corporation or other business entity shall be selected as a lottery retailer for the sale of instant tickets or on-line games who:
A. Has been convicted of any felony; or
B. Is a vendor or an employee or agent of any vendor doing business with the corporation.
(iv) In addition to the provisions of item (iii) of this paragraph, no person, partnership, unincorporated association, corporation or other business entity shall be selected as an on-line lottery retailer who:
A. Has been denied a license to sell instant tickets on the basis of objective criteria established by the board, or any provision of this act; or
B. Has failed to sell sufficient instant tickets to indicate that the location of an on-line game at his outlet would be of economic benefit to him or the lottery corporation.
(v) The applicant shall not be engaged exclusively in the sale of lottery tickets. However, this item shall not preclude the corporation from contracting for the sale of lottery tickets with nonprofit, charitable organizations or units of government in accordance with the provisions of this act.
(c) Persons applying to become lottery retailers shall be charged a uniform application fee for each lottery outlet. Retailers chosen to participate in on-line games shall be charged a uniform annual fee for each on-line outlet.
(d) Any lottery retailer contract executed pursuant to this section may, for good cause, be suspended, revoked or terminated by the president if the retailer is found to have violated any of the objective criteria established by the corporation as provided in subsection (1) of this section. Review of such action shall be in accordance with the procedures outlined in Section 13 of this act. All lottery retailer contracts shall be renewable annually after issuance unless sooner cancelled or terminated.
(2) (a) A retailer who has been denied an on-line game for reasons other than financial responsibility, security or integrity shall be permitted to purchase or lease the equipment necessary to operate such a game from the corporation in a manner consistent with the corporation's manner of acquisition. A retailer need not file an appeal before being permitted to purchase or lease on-line equipment.
(b) After one (1) year of operation, any retailer who purchased or leased on-line equipment pursuant to paragraph (a) of this subsection and whose sales are equal to or greater than the statewide average of sales of on-line retailers, shall be reimbursed the cost of the purchase or lease by the corporation. The corporation may purchase the terminals of other retailers who purchased their equipment if the corporation determines that such purchase is in the best interest of the lottery.
(3) No lottery retailer contract awarded under this section shall be transferable or assignable. No lottery retailer shall contract with any person for lottery goods or services except with the approval of the corporation.
(4) Each lottery retailer shall be issued a lottery retailer certificate which shall be conspicuously displayed at the place where the lottery retailer is authorized to sell lottery tickets. Lottery tickets shall only be sold by the retailer at the location stated on the lottery retailer certificate.
(5) A member of the Legislature who meets the same requirements as any other applicant to be a retailer may be granted a retail contract to sell lottery tickets or participate in any other lottery game operations. No member of the Legislature shall be entitled to preference over any other applicant for a contract.
(6) For the convenience of the public, all retailers shall be authorized to pay winners up to Six Hundred Dollars ($600.00) after the retailer performs validation procedures appropriate to the lottery game involved.
SECTION 21. (1) The corporation shall require each retailer to post a letter of credit or a bond with the corporation using a surety acceptable to the corporation in an amount not to exceed twice the average lottery ticket sales of the retailer for the period within which the retailer is required to remit lottery funds to the corporation. For the first ninety (90) days of sales of a new retailer, the amount of the bond shall not exceed twice the average estimated lottery ticket sales for the period within which the retailer is required to remit lottery funds to the corporation. This section does not apply to lottery tickets which are prepaid by the retailers.
(2) Any contract executed by the corporation pursuant to this act shall specify the reasons for which any contract may be suspended, revoked or terminated by the corporation, including, but not limited to:
(a) Commission of a violation of this act or administrative regulations adopted pursuant thereto;
(b) Failure to accurately account for lottery tickets, revenues or prizes as required by the corporation;
(c) Commission of any fraud, deceit or misrepresentation;
(d) Insufficient sale of tickets;
(e) Conduct prejudicial to public confidence in the lottery;
(f) Any material change in any matter considered by the corporation in executing the contract with the retailer; or
(g) Failure to meet any of the objective criteria established by the corporation pursuant to Section 20 of this act.
(3) If, in the discretion of the president, such denial, revocation, suspension or rejection of renewal is in the best interests of the lottery, the public welfare, or the State of Mississippi, the president may suspend, revoke or terminate, after notice and a hearing, any contract issued pursuant to this act. Such contract may, however, be temporarily suspended by the president without prior notice, pending any prosecution, hearing or investigation, whether by a third party or by the president. A contract may be suspended, revoked or terminated by the president for one or more of the reasons enumerated in subsection (2) of this section.
SECTION 22. (1) All proceeds from the sale of lottery tickets received by a person in the capacity of a lottery retailer shall constitute a trust fund until paid to the corporation, either directly or through the corporation's authorized collection representative. Proceeds shall include unsold instant tickets received by a lottery retailer and cash proceeds of sale of any lottery products, net of allowable sales commissions and credit for lottery prizes to winners by lottery retailers. Sales proceeds and unused instant tickets shall be delivered to the corporation or its authorized collection representative upon demand. The corporation shall, by administrative regulation, require retailers to place all lottery proceeds due the corporation in accounts in state approved depositories insured by the Federal Deposit Insurance Corporation or Federal Savings and Loan Insurance Corporation (or its successor) not later than the close of the next banking day after the date of their collection by the retailer until the date they are paid over to the corporation. The corporation may require a retailer to establish a single separate electronic funds transfer account, where available, for the purpose of receiving monies from ticket sales, making payments to the corporation and receiving payments from the corporation. Lottery retailers shall be personally liable for all proceeds. Each lottery retailer shall establish a separate bank account for lottery proceeds which shall be kept separate and apart from all other funds and assets and shall not be commingled with any other funds or assets. This section shall apply to all lottery tickets generated by computer terminal or other electronic device and any other tickets delivered to lottery retailers.
(2) Whenever any person who receives proceeds from the sale of lottery tickets in the capacity of a lottery retailer becomes insolvent, or dies insolvent, the proceeds due the corporation from such person or his estate shall have preference over all debts or demands.
SECTION 23. If a lottery retailer's rental payments for the business premises are contractually computed, in whole or in part, on the basis of a percentage of retail sales, and such computation of retail sales is not explicitly defined to include sales of tickets in a state-operated lottery, the compensation received by the lottery retailer from the lottery shall be considered the amount of the retail sale for purposes of computing the rental payment.
SECTION 24. (1) No person shall sell a ticket at a price other than established by the corporation, unless authorized in writing by the president. No person other than a duly certified lottery retailer shall sell lottery tickets, except that nothing in this act shall be construed to prevent a person who may lawfully purchase tickets from making a gift of lottery tickets to another. Nothing in this act shall be construed to prohibit the corporation from designating certain of its agents and employees to sell lottery tickets directly to the public.
(2) Lottery tickets may be given by merchants as a means of promoting goods or services to customers or prospective customers subject to approval by the corporation.
(3) No lottery retailer shall sell a ticket away from the locations listed in his contract.
SECTION 25. (1) The corporation may purchase, lease or lease-purchase such goods or services as are necessary for effectuating the purposes of this act. The corporation shall not contract with any person or entity for the total operation and administration of the state lottery, but may make procurements which integrate functions such as lottery game design, lottery ticket distribution to retailers, supply of goods and services, and advertising. In all procurement decisions, the corporation shall take into account the particularly sensitive nature of the state lottery and shall act to promote and ensure security, honesty, fairness and integrity in the operation and administration of the lottery and the objectives of raising net proceeds for the benefit of the public purpose described in this act.
(2) The corporation shall investigate the financial responsibility, security and integrity of any person who submits a bid, proposal or offer as part of a major procurement. At the time of submitting such bid, proposal or offer to the corporation, the corporation may require the following items:
(a) A disclosure of the vendor's name and address and, as applicable, the name and address of the following:
(i) If the vendor is a corporation, the officers, directors and each stockholder in such corporation; except that, in the case of owners of equity securities of a publicly traded corporation, only the names and addresses of those known to the corporation to own beneficially five percent (5%) or more of such securities need be disclosed;
(ii) If the vendor is a trust, the trustee and all persons entitled to receive income or benefit from the trust;
(iii) If the vendor is an association, the members, officers and directors; and
(iv) If the vendor is a partnership or joint venture, all of the general partners, limited partners or joint venturers.
(b) A disclosure of all the states and jurisdictions in which the vendor does business, and the nature of the business for each such state or jurisdiction.
(c) A disclosure of all the states and jurisdictions in which the vendor has contracts to supply gaming goods or services, including, but not limited to, lottery goods and services, and the nature of the goods or services involved for each such state or jurisdiction.
(d) A disclosure of all the states and jurisdictions in which the vendor has applied for, has sought renewal of, has received, has been denied, has pending, or has had revoked a gaming license of any kind, and the disposition of such in each such state or jurisdiction. If any gaming license has been revoked or has not been renewed or any gaming license application has been either denied or is pending and has remained pending for more than six (6) months, all of the facts and circumstances underlying the failure to receive such a license shall be disclosed.
(e) A disclosure of the details of any finding of guilt, in a state or federal court, against the vendor for any felony or any other criminal offense other than a traffic violation.
(f) A disclosure of the details of any bankruptcy, insolvency, reorganization or any pending litigation of the vendor.
(g) Such additional disclosures and information as the corporation may determine to be appropriate for the procurement involved. For purposes of the disclosure requirements in this section, the term "vendor" shall include all persons included in subsection (2)(a)(i-iv) of this section. If the vendor subcontracts any substantial portion of the work to be performed under the contract to a subcontractor, the vendor shall disclose all of the information required by this subsection for the subcontractor as if the subcontractor were itself a vendor.
(3) A contract for a procurement with any vendor subject to subsection (2) of this section who has not complied with the disclosure requirements described in subsection (2) of this section shall not be entered into, and any contract with such a vendor is unenforceable. Any contract with a vendor who does not comply with such requirements for periodically updating such disclosures during the tenure of contract as may be specified in such contract shall be terminated by the corporation. This subsection and subsection (2) of this section shall be construed broadly and liberally to achieve the ends of full disclosure of all information necessary to allow for a full and complete evaluation by the corporation of the competence, integrity, background and character of vendors for major procurements.
(4) A contract shall not be entered into with any vendor who has been found guilty of a felony, unless the corporation determines that:
(a) The vendor has been pardoned or the vendor's civil rights have been restored; and
(b) Subsequent to such findings of guilt the vendor has engaged in the kind of law-abiding commerce and good citizenship that would reflect well upon the integrity of the lottery; or
(c) If the vendor is a firm, association, partnership, trust corporation or other entity, the vendor has terminated its relationship with the individuals whose actions directly contributed to the vendor's guilt.
(5) Each vendor shall, at the execution of the contract with the corporation, post a performance bond or letter of credit from a bank acceptable to the corporation, in an amount equal to the full amount estimated to be paid annually to the vendor under the contract. In lieu of the bond, a vendor may, to ensure the faithful performance of its obligations, deposit and maintain with the State Treasury securities that are interest bearing or accruing and that, with the exception of those specified in paragraph (a) or (b) of this subsection, are rated in one (1) of the three (3) highest classifications by an established nationally recognized investment rating service. Safekeeping receipts for such securities may be accepted by the State Treasurer in lieu of physical deposit of the security with the State Treasurer. Securities eligible under this subsection are limited to:
(a) Certificates of deposit issued by solvent banks or savings associations organized and existing under the laws of this state or under the laws of the United States and having their principal place of business in this state;
(b) United States bonds, notes and bills for which the full faith and credit of the government of the United States is pledged for the payment of principal and interest;
(c) General obligation bonds and notes of any political subdivision of the state; or
(d) Corporate bonds of any corporation that is not an affiliate or subsidiary of the depositor. Such securities shall be held in trust and shall have at all times a market value at least equal to the full amount estimated to be paid annually to the lottery vendor under contract.
(6) Every contract entered into by the corporation pursuant to this section shall contain a provision for payment of liquidated damages to the corporation for any breach of contract by the vendor.
(7) Each vendor shall be qualified to do business in this state and shall file appropriate tax returns as provided by the laws of this state. All contracts under this section shall be governed by the laws of this state.
SECTION 26. (1) The Department of Public Safety shall, at the request of the chief security officer of the corporation, perform full criminal background investigations on all potential vendors and potential employees of the corporation at the level of division director and above and at any level within the division of security. The corporation shall reimburse the Department of Public Safety for the actual costs of such investigations.
(2) The corporation or its division of security shall:
(a) Conduct criminal background investigations and credit investigations on all potential retailers and investigate all potential employees of the corporation not referred to in subsection (1) of this section;
(b) Supervise ticket validation and lottery drawings;
(c) Inspect, at times determined solely by the division, the facilities of any vendor in order to determine the integrity of the vendor's product and in order to determine whether the vendor is in compliance with its contract;
(d) Report any suspected violations of this act to the appropriate district attorney or the Attorney General and law enforcement agencies; and
(e) Upon request, provide assistance to any district attorney, the Attorney General or law enforcement agency investigating a violation of this act.
SECTION 27. (1) Any person who knowingly sells a lottery ticket to a person under eighteen (18) years of age shall be fined not less than One Hundred Dollars ($100.00) nor more than Five Hundred Dollars ($500.00) for the first offense, and for each subsequent offense not less than Two Hundred Dollars ($200.00) nor more than One Thousand Dollars ($1,000.00).
(2) Any person who, with intent to defraud, falsely makes, alters, forges, utters, passes or counterfeits a state lottery ticket shall be guilty of a felony and shall be punished by commitment to the custody of the State Department of Corrections for a period of at least five (5) years but not more than ten (10) years.
(3) Any person who influences or attempts to influence the winning of a prize through the use of coercion, fraud, deception or tampering with lottery equipment or materials shall be guilty of a felony and shall be punished by commitment to the custody of the State Department of Corrections for a period of at least ten (10) years but not more than twenty (20) years.
(4) Any person who violates the provisions of Section 7(2) of this act shall be fined not less than Five Thousand Dollars ($5,000.00) nor more than Fifty Thousand Dollars ($50,000.00) and shall be removed from the board.
(5) Any person who violates the provisions of Section 12(2) of this act shall be fined not less than Five Thousand Dollars ($5,000.00) nor more than Fifty Thousand Dollars ($50,000.00) and shall be guilty of a felony, and shall be punished by commitment to the custody of the State Department of Corrections for a period of at least one (1) year but not more than five (5) years.
(6) Any person who violates the provisions of Section 12(3) of this act shall be fined not less than One Thousand Dollars ($1,000.00) nor more than Ten Thousand Dollars ($10,000.00).
(7) Any person who violates the provisions of Section 12(4) of this act shall be fined not less than One Thousand Dollars ($1,000.00) nor more than Ten Thousand Dollars ($10,000.00).
(8) Any person who willfully violates the provisions of Section 22(1) of this act shall be fined not less than One Thousand Dollars ($1,000.00) nor more than Ten Thousand Dollars ($10,000.00) and shall be guilty of a felony, and shall be punished by commitment to the custody of the State Department of Corrections for a period of at least one (1) year but not more than five (5) years.
(9) Any person who violates the provisions of Section 24(1) of this act for the first offense shall be fined not less than One Hundred Dollars ($100.00) nor more than Five Hundred Dollars ($500.00) and for each subsequent offense shall be fined not less than Two Hundred Dollars ($200.00) nor more than Two Thousand Dollars ($2,000.00) and may be imprisoned for not more than ninety (90) days.
(10) Any person violating Section 19 of this act is guilty of a felony, and shall be punished by commitment to the custody of the State Department of Corrections for a period of at least one (1) year but not more than five (5) years.
SECTION 28. Section 25-9-107, Mississippi Code of 1972, is amended as follows:
25-9-107. The following terms, when used in this chapter, unless a different meaning is plainly required by the context, shall have the following meanings:
(a) "Board" shall mean the State Personnel Board created under the provisions of this chapter.
(b) "State service" shall mean all employees of state departments, agencies and institutions as defined herein, except those officers and employees excluded by this chapter.
(c) "Nonstate service" shall mean the following officers and employees excluded from the state service by this chapter. The following are excluded from the state service:
(i) Members of the state Legislature, their staffs and other employees of the legislative branch;
(ii) The Governor and staff members of the immediate Office of the Governor;
(iii) Justices and judges of the judicial branch or members of appeals boards on a per diem basis;
(iv) The Lieutenant Governor, staff members of the immediate Office of the Lieutenant Governor and officers and employees directly appointed by the Lieutenant Governor;
(v) Officers and officials elected by popular vote and persons appointed to fill vacancies in elective offices;
(vi) Members of boards and commissioners appointed by the Governor, Lieutenant Governor or the state Legislature;
(vii) All academic officials, members of the teaching staffs and employees of the state institutions of higher learning, the State Board for Community and Junior Colleges, and community and junior colleges;
(viii) Officers and enlisted members of the National Guard of the state;
(ix) Prisoners, inmates, student or patient help working in or about institutions;
(x) Contract personnel; provided, that any agency which employs state service employees may enter into contracts for personal and professional services only if such contracts are approved in compliance with the rules and regulations promulgated by the State Personal Service Contract Review Board under Section 25-9-120(3). Before paying any warrant for such contractual services in excess of One Hundred Thousand Dollars ($100,000.00), the Auditor of Public Accounts, or the successor to those duties, shall determine whether the contract involved was for personal or professional services, and, if so, was approved by the State Personal Service Contract Review Board;
(xi) Part-time employees; provided, however, part-time employees shall only be hired into authorized employment positions classified by the board, shall meet minimum qualifications as set by the board, and shall be paid in accordance with the Variable Compensation Plan as certified by the board;
(xii) Persons appointed on an emergency basis for the duration of the emergency; the effective date of the emergency appointments shall not be earlier than the date approved by the State Personnel Director, and shall be limited to thirty (30) working days. Emergency appointments may be extended to sixty (60) working days by the State Personnel Board;
(xiii) Physicians, dentists, veterinarians, nurse practitioners and attorneys, while serving in their professional capacities in authorized employment positions who are required by statute to be licensed, registered or otherwise certified as such, provided that the State Personnel Director shall verify that the statutory qualifications are met prior to issuance of a payroll warrant by the auditor;
(xiv) Personnel who are employed and paid from funds received from a federal grant program which has been approved by the Legislature or the Department of Finance and Administration whose length of employment has been determined to be time-limited in nature. This subparagraph shall apply to personnel employed under the provisions of the Comprehensive Employment and Training Act of 1973, as amended, and other special federal grant programs which are not a part of regular federally funded programs wherein appropriations and employment positions are appropriated by the Legislature. Such employees shall be paid in accordance with the Variable Compensation Plan and shall meet all qualifications required by federal statutes or by the Mississippi Classification Plan;
(xv) The administrative head who is in charge of any state department, agency, institution, board or commission, wherein the statute specifically authorizes the Governor, board, commission or other authority to appoint said administrative head; provided, however, that the salary of such administrative head shall be determined by the State Personnel Board in accordance with the Variable Compensation Plan unless otherwise fixed by statute;
(xvi) The State Personnel Board shall exclude top level positions if the incumbents determine and publicly advocate substantive program policy and report directly to the agency head, or the incumbents are required to maintain a direct confidential working relationship with a key excluded official. Provided further, a written job classification shall be approved by the board for each such position, and positions so excluded shall be paid in conformity with the Variable Compensation Plan;
(xvii) Employees whose employment is solely in connection with an agency's contract to produce, store or transport goods, and whose compensation is derived therefrom;
(xviii) Personnel employed by the State Prison Emergency Construction and Management Board, paid from funds from the "Correctional Facilities Emergency Construction Fund," or employed under contracts let or approved by the board for the construction, acquisition, lease, lease-purchase or operation of prison facilities. This subparagraph shall stand repealed from and after July 1, 1996;
(xix) The associate director, deputy directors and bureau directors within the Department of Agriculture and Commerce;
(xx) All officers and employees, including contract personnel of the Mississippi Lottery Corporation.
(d) "Agency" means any state board, commission, committee, council, department or unit thereof created by the Constitution or statutes if such board, commission, committee, council, department, unit or the head thereof, is authorized to appoint subordinate staff by the Constitution or statute, except a legislative or judicial board, commission, committee, council, department or unit thereof.
SECTION 29. Section 25-41-7, Mississippi Code of 1972, is amended as follows:
25-41-7. (1) Any public body may enter into executive session for the transaction of public business; provided, however, all meetings of any such public body shall commence as an open meeting, and an affirmative vote of three-fifths (3/5) of all members present shall be required to declare an executive session.
(2) The procedure to be followed by any public body in declaring an executive session shall be as follows: Any member shall have the right to request by motion a closed determination upon the issue of whether or not to declare an executive session. Such motion, by majority vote, shall require the meeting to be closed for a preliminary determination of the necessity for executive session. No other business shall be transacted until the discussion of the nature of the matter requiring executive session has been completed and a vote, as required in subsection (1) hereof, has been taken on the issue.
(3) An executive session shall be limited to matters allowed to be exempted from open meetings by subsection (4) of this section. The reason for holding such an executive session shall be stated in an open meeting, and the reason so stated shall be recorded in the minutes of the meeting. Nothing in this section shall be construed to require that any meeting be closed to the public, nor shall any executive session be used to circumvent or to defeat the purposes of this chapter.
(4) A public body may hold an executive session pursuant to this section for one or more of the following reasons:
(a) Transaction of business and discussion of personnel matters relating to the job performance, character, professional competence, or physical or mental health of a person holding a specific position.
(b) Strategy sessions or negotiations with respect to prospective litigation, litigation or issuance of an appealable order when an open meeting would have a detrimental effect on the litigating position of the public body.
(c) Transaction of business and discussion regarding the report, development or course of action regarding security personnel, plans or devices.
(d) Investigative proceedings by any public body regarding allegations of misconduct or violation of law.
(e) Any body of the Legislature which is meeting on matters within the jurisdiction of such body.
(f) Cases of extraordinary emergency which would pose immediate or irrevocable harm or damage to persons and/or property within the jurisdiction of such public body.
(g) Transaction of business and discussion regarding the prospective purchase, sale or leasing of lands.
(h) Discussions between a school board and individual students who attend a school within the jurisdiction of such school board or the parents or teachers of such students regarding problems of such students or their parents or teachers.
(i) Transaction of business and discussion concerning the preparation of tests for admission to practice in recognized professions.
(j) Transaction of business and discussions or negotiations regarding the location, relocation or expansion of a business or an industry.
(k) Transaction of business and discussions regarding employment or job performance of a person in a specific position or termination of an employee holding a specific position. The exemption provided by this paragraph includes the right to enter into executive session concerning a line item in a budget which might affect the termination of an employee or employees. All other budget items shall be considered in open meetings and final budgetary adoption shall not be taken in executive session.
(l) Transaction of business and discussion by the board of the Mississippi Lottery Corporation relating to trade secrets of the security of lottery operation.
(5) The total vote on the question of entering into an executive session shall be recorded and spread upon the minutes of such public body.
(6) Any such vote whereby an executive session is declared shall be applicable only to that particular meeting on that particular day.
SECTION 30. Section 25-53-25, Mississippi Code of 1972, is amended as follows:
25-53-25. (1) Nothing in this chapter shall be construed to pertain to any agency financed entirely by federal funds; provided, however, that nothing in this subsection shall be construed to imply exemption from the public purchases law, being Section 31-7-1 et seq.
(2) The authority may establish policies and procedures for the purpose of delegating the bidding and contracting responsibilities related to the procurement of computer equipment or services to the purchasing agency. Such policies and procedures must address the following issues:
(a) Establish categories of equipment or services affected;
(b) Establish maximum unit and/or ceiling prices of such procurements;
(c) Establish reporting, monitoring and control of such procurements; and
(d) Establish other such rules and regulations as necessary to fully implement the purposes of this section. Nothing in this subsection shall be construed to imply exemption from the public purchases law, being Section 31-7-1 et seq.
(3) Acquisitions of computer equipment and services by institutions of higher learning or junior colleges wholly with federal funds and not with state general funds shall be exempt from the provisions of this chapter; however, nothing in this subsection shall be construed to imply an exemption of such acquisitions from the public purchases law, being Section 31-7-1 et seq.
(4) Acquisition of computer equipment and services by the State Prison Emergency Construction and Management Board when exercising its emergency powers to remove two thousand (2,000) inmates from county jails are exempt from the provisions of this chapter; however, this exemption does not apply to the acquisition of computer equipment and services for private correctional facilities, the South Mississippi Correctional Institution and the Central Mississippi Correctional Facility. This subsection shall stand repealed from and after July 1, 1996.
(5) Nothing in this chapter shall apply to the Mississippi Lottery Corporation.
SECTION 31. Section 27-65-111, Mississippi Code of 1972, is amended as follows:
27-65-111. The exemptions from the provisions of this chapter which are not industrial, agricultural or governmental, or which do not relate to utilities or taxes, or which are not properly classified as one of the exemption classifications of this chapter, shall be confined to persons or property exempted by this section or by the Constitution of the United States or the State of Mississippi. No exemptions as now provided by any other section, except the classified exemption sections of this chapter set forth herein, shall be valid as against the tax herein levied. Any subsequent exemption from the tax levied hereunder, except as indicated above, shall be provided by amendments to this section.
No exemption provided in this section shall apply to taxes levied by Section 27-65-15 or 27-65-21, Mississippi Code of 1972.
The tax levied by this chapter shall not apply to the following:
(a) Sales of tangible personal property and services to hospitals or infirmaries owned and operated by a corporation or association in which no part of the net earnings inures to the benefit of any private shareholder, group or individual, and which are subject to and governed by Sections 41-7-123 through 41-7-127.
Only sales of tangible personal property or services which are ordinary and necessary to the operation of such hospitals and infirmaries are exempted from tax.
(b) Sales of daily or weekly newspapers, and periodicals or publications of scientific, literary or educational organizations exempt from federal income taxation under Section 501(c)(3) of the Internal Revenue Code of 1954, as it exists as of March 31, 1975, and subscription sales of all magazines.
(c) Sales of coffins, caskets and other materials used in the preparation of human bodies for burial.
(d) Sales of tangible personal property for immediate export to a foreign country.
(e) Sales of tangible personal property to an orphanage, old men's or ladies' home, supported wholly or in part by a religious denomination, fraternal nonprofit organization or other nonprofit organization.
(f) Sales of tangible personal property, labor or services taxable under Sections 27-65-17, 27-65-19, and 27-65-23, to a YMCA, YWCA, a Boys' or Girls' Club owned and operated by a corporation or association in which no part of the net earnings inures to the benefit of any private shareholder, group or individual.
(g) Sales to elementary and secondary grade schools, junior and senior colleges owned and operated by a corporation or association in which no part of the net earnings inures to the benefit of any private shareholder, group or individual, and which are exempt from state income taxation, provided that this exemption does not apply to sales of property or services which are not to be used in the ordinary operation of the school, or which are to be resold to the students or the public.
(h) The gross proceeds of retail sales and the use or consumption in this state of drugs and medicines:
(i) Prescribed for the treatment of a human being by a person authorized to prescribe the medicines, and dispensed or prescription filled by a registered pharmacist in accordance with law; or
(ii) Furnished by a licensed physician, surgeon, dentist or podiatrist to his own patient for treatment of the patient; or
(iii) Furnished by a hospital for treatment of any person pursuant to the order of a licensed physician, surgeon, dentist or podiatrist; or
(iv) Sold to a licensed physician, surgeon, podiatrist, dentist or hospital for the treatment of a human being; or
(v) Sold to this state or any political subdivision or municipal corporation thereof, for use in the treatment of a human being or furnished for the treatment of a human being by a medical facility or clinic maintained by this state or any political subdivision or municipal corporation thereof.
"Medicines," as used in this paragraph (h), shall mean and include any substance or preparation intended for use by external or internal application to the human body in the diagnosis, cure, mitigation, treatment or prevention of disease and which is commonly recognized as a substance or preparation intended for such use; provided that "medicines" do not include any auditory, prosthetic, ophthalmic or ocular device or appliance, any dentures or parts thereof or any artificial limbs or their replacement parts, articles which are in the nature of splints, bandages, pads, compresses, supports, dressings, instruments, apparatus, contrivances, appliances, devices or other mechanical, electronic, optical or physical equipment or article or the component parts and accessories thereof, or any alcoholic beverage or any other drug or medicine not commonly referred to as a prescription drug.
Notwithstanding the preceding sentence of this paragraph (h), "medicines" as used in this paragraph (h), shall mean and include sutures, whether or not permanently implanted, bone screws, bone pins, pacemakers and other articles permanently implanted in the human body to assist the functioning of any natural organ, artery, vein or limb and which remain or dissolve in the body.
"Hospital," as used in this paragraph (h), shall have the meaning ascribed to it in Section 41-9-3, Mississippi Code of 1972.
Insulin furnished by a registered pharmacist to a person for treatment of diabetes as directed by a physician shall be deemed to be dispensed on prescription within the meaning of this paragraph (h).
(i) Retail sales of automobiles, trucks and truck-tractors if exported from this state within forty-eight (48) hours and registered and first used in another state.
(j) Sales of tangible personal property or services to the Salvation Army and the Muscular Dystrophy Association, Inc.
(k) From July 1, 1985, through December 31, 1992, retail sales of "alcohol blended fuel" as such term is defined in Section 75-55-5. The gasoline-alcohol blend or the straight alcohol eligible for this exemption shall not contain alcohol distilled outside the State of Mississippi.
(l) Sales of tangible personal property or services to the Institute for Technology Development.
(m) The gross proceeds of retail sales of food and drink for human consumption made through vending machines serviced by full line vendors from and not connected with other taxable businesses.
(n) The gross proceeds of sales of motor fuel.
(o) Retail sales of food for human consumption purchased with food stamps issued by the United States Department of Agriculture, or other federal agency, from and after October 1, 1987, or from and after the expiration of any waiver granted pursuant to federal law, the effect of which waiver is to permit the collection by the state of tax on such retail sales of food for human consumption purchased with food stamps.
(p) Sales of cookies for human consumption by the Girl Scouts of America no part of the net earnings from which sales inures to the benefit of any private group or individual.
(q) Gifts or sales of tangible personal property or services to public or private nonprofit museums of art.
(r) Sales of tangible personal property or services to alumni associations of state-supported colleges or universities.
(s) Sales of tangible personal property or services to chapters of the National Association of Junior Auxiliaries, Inc.
(t) Sales of tangible personal property or services to domestic violence shelters which qualify for state funding under Sections 93-21-101 through 93-21-113.
(u) Sales of tangible personal property or services to the National Multiple Sclerosis Society, Mississippi Chapter.
(v) Retail sales of food for human consumption purchased with food instruments issued the Mississippi Band of Choctaw Indians under the Women, Infants and Children Program (WIC) funded by the United States Department of Agriculture.
(w) Sales of tangible personal property or services to a private company, as defined in Section 57-61-5, which is making such purchases with proceeds of bonds issued under Section 57-61-1 et seq., the Mississippi Business Investment Act.
(x) The gross collections from the operation of self-service, coin-operated car washing equipment and sales of the service of washing motor vehicles with portable high pressure washing equipment on the premises of the customer.
(y) Sales of Mississippi Lottery Corporation tickets.
SECTION 32. Section 31-7-13, Mississippi Code of 1972, is amended as follows:
31-7-13. All agencies and governing authorities shall purchase their commodities and printing; contract for fire insurance, automobile insurance, casualty insurance (other than workers' compensation) and liability insurance; contract for garbage collection or disposal; contract for solid waste collection or disposal; contract for sewage collection or disposal; and contract for public construction as herein provided.
(a) Purchases which do not involve an expenditure of more than One Thousand Five Hundred Dollars ($1,500.00), exclusive of freight or shipping charges, may be made without advertising or otherwise requesting competitive bids. Provided, however, that nothing contained in this paragraph (a) shall be construed to prohibit any agency or governing authority from establishing procedures which require competitive bids on purchases of One Thousand Five Hundred Dollars ($1,500.00) or less.
(b) Purchases which involve an expenditure of more than One Thousand Five Hundred Dollars ($1,500.00) but not more than Five Thousand Dollars ($5,000.00), exclusive of freight and shipping charges may be made from the lowest and best bidder without publishing or posting advertisement for bids, provided at least two (2) competitive written bids have been obtained. Any governing authority purchasing commodities pursuant to this paragraph (b) may authorize its purchasing agent, or his designee, with regard to governing authorities other than counties, or its purchase clerk, or his designee, with regard to counties, to accept the lowest and best competitive written bid. Such authorization shall be made in writing by the governing authority and shall be maintained on file in the primary office of the agency and recorded in the official minutes of the governing authority, as appropriate. The purchasing agent or the purchase clerk, or their designee, as the case may be, and not the governing authority, shall be liable for any penalties and/or damages as may be imposed by law for any act or omission of the purchasing agent or purchase clerk, or their designee, constituting a violation of law in accepting any bid without approval by the governing authority. The term "competitive written bid" shall mean a bid submitted on a bid form furnished by the buying agency or governing authority and signed by authorized personnel representing the vendor, or a bid submitted on a vendor's letterhead or identifiable bid form and signed by authorized personnel representing the vendor.
(c) Purchases which involve an expenditure of more than Five Thousand Dollars ($5,000.00), exclusive of freight and shipping charges may be made from the lowest and best bidder after advertising for competitive sealed bids once each week for two (2) consecutive weeks in a regular newspaper published in the county or municipality in which such agency or governing authority is located. The date as published for the bid opening shall not be less than seven (7) working days after the last published notice; however, if the purchase involves a construction project in which the estimated cost is in excess of Ten Thousand Dollars ($10,000.00), such bids shall not be opened in less than fifteen (15) working days after the last notice is published and the notice for the purchase of such construction shall be published once each week for two (2) consecutive weeks. The notice of intention to let contracts or purchase equipment shall state the time and place at which bids shall be received, list the contracts to be made or types of equipment or supplies to be purchased, and, if all plans and/or specifications are not published, refer to the plans and/or specifications on file. In all cases involving governing authorities, before the notice shall be published or posted, the plans or specifications for the construction or equipment being sought shall be filed with the clerk of the board of the governing authority, and there remain. If there is no newspaper published in the county or municipality, then such notice shall be given by posting same at the courthouse, or for municipalities at the city hall, and at two (2) other public places in the county or municipality, and also by publication once each week for two (2) consecutive weeks in some newspaper having a general circulation in the county or municipality in the above provided manner. On the same date that the notice is submitted to the newspaper for publication, the agency or governing authority involved shall mail written notice to the main office of the Mississippi Contract Procurement Center that contains the same information as that in the published notice. In addition to these requirements, agencies shall maintain a vendor file and vendors of the equipment or commodities being sought may be mailed solicitations and specifications, and a bid file shall be established which shall indicate those vendors to whom such solicitations and specifications were mailed, and such file shall also contain such information as is pertinent to the bid. Specifications pertinent to such bidding shall be written so as not to exclude comparable equipment of domestic manufacture. Provided, however, that should valid justification be presented, the Department of Finance and Administration or the board of a governing authority may approve a request for specific equipment necessary to perform a specific job. Provided further, that a registered professional engineer or architect may write specifications for a governing authority to require a specific item of equipment available only from limited sources or vendors when such specifications conform with the rules and regulations promulgated by an appropriate federal agency regulating such matters under the federal procurement laws. Further, such justification, when placed on the minutes of the board of a governing authority, may serve as authority for that governing authority to write specifications to require a specific item of equipment needed to perform a specific job. In addition to these requirements, from and after July 1, 1990, vendors of relocatable classrooms and the specifications for the purchase of such relocatable classrooms published by local school boards shall meet all pertinent regulations of the State Board of Education, including prior approval of such bid by the State Department of Education. Nothing in this section shall prohibit any agency or governing authority from writing specifications to include life-cycle costing, total cost bids, extended warranties or guaranteed buy-back provisions, provided that such bid requirements shall be in compliance with regulations established by the Department of Audit.
(d) (i) Purchases may be made from the lowest and best bidder. In determining the lowest and best bid, freight and shipping charges shall be included. If any governing authority accepts a bid other than the lowest bid actually submitted, it shall place on its minutes detailed calculations and narrative summary showing that the accepted bid was determined to be the lowest and best bid, including the dollar amount of the accepted bid and the dollar amount of the lowest bid. No agency or governing authority shall accept a bid based on items not included in the specifications.
(ii) If the lowest and best bid is not more than ten percent (10%) above the amount of funds allocated for a public construction or renovation project, then the agency or governing authority shall be permitted to negotiate with the lowest bidder in order to enter into a contract for an amount not to exceed the funds allocated.
(iii) Whenever bids are solicited for a public construction or renovation project and only one (1) bid is received, the agency or the governing authority may accept such bid if the bid is opened, it is within the funds allocated for the project, it is responsive to the solicitation and the contractor is capable of performing the contract in accordance with the solicitation.
(iv) No addendum to bid specifications for such projects may be issued by the agency or governing authority within twelve (12) hours of the time established by the agency or governing authority for the receipt of bids.
(e) Any lease-purchase of equipment which an agency is not required to lease-purchase under the master lease-purchase program pursuant to Section 31-7-10 and any lease-purchase of equipment which a governing authority elects to lease-purchase may be acquired by a lease-purchase agreement under this paragraph (e). Lease-purchase financing may also be obtained from the vendor or from a third-party source after having solicited and obtained at least two (2) written competitive bids, as defined in paragraph (b) of this section, for such financing without advertising for such bids. Solicitation for the bids for financing may occur before or after acceptance of bids for the purchase of such equipment or, where no such bids for purchase are required, at any time before the purchase thereof. No such lease-purchase agreement shall be for an annual rate of interest which is greater than the overall maximum interest rate to maturity on general obligation indebtedness permitted under Section 75-17-101, and the term of such lease-purchase agreement shall not exceed the useful life of property covered thereby as determined according to the upper limit of the asset depreciation range (ADR) guidelines for the Class Life Asset Depreciation Range System established by the Internal Revenue Service pursuant to the United States Internal Revenue Code and regulations thereunder as in effect on December 31, 1980, or comparable depreciation guidelines with respect to any equipment not covered by ADR guidelines. Any lease-purchase agreement entered into pursuant to this paragraph (e) may contain any of the terms and conditions which a master lease-purchase agreement may contain under the provisions of Section 31-7-10(5), and shall contain an annual allocation dependency clause substantially similar to that set forth in Section 31-7-10(8). Each agency or governing authority entering into a lease-purchase transaction pursuant to this paragraph (e) shall maintain with respect to each such lease-purchase transaction the same information as required to be maintained by the Department of Finance and Administration pursuant to Section 31-7-10(13). However, nothing contained in this section shall be construed to permit agencies to acquire items of equipment with a total acquisition cost in the aggregate of less than Ten Thousand Dollars ($10,000.00) by a single lease-purchase transaction. All equipment, and the purchase thereof by any lessor, acquired by lease-purchase under this paragraph and all lease-purchase payments with respect thereto shall be exempt from all Mississippi sales, use and ad valorem taxes. Interest paid on any lease-purchase agreement under this section shall be exempt from State of Mississippi income taxation.
(f) When necessary to ensure ready availability of commodities for public works and the timely completion of public projects, no more than two (2) alternate bids may be accepted by a governing authority for commodities. No purchases may be made through use of such alternate bids procedure unless the lowest and best bidder, for reasons beyond his control, cannot deliver the commodities contained in his bid. In that event, purchases of such commodities may be made from one (1) of the bidders whose bid was accepted as an alternate.
(g) In the event a determination is made by an agency or governing authority after a construction contract is let that changes or modifications to the original contract are necessary or would better serve the purpose of the agency or the governing authority, such agency or governing authority may, in its discretion, order such changes pertaining to the construction that are necessary under the circumstances without the necessity of further public bids; provided that such change shall be made in a commercially reasonable manner and shall not be made to circumvent the public purchasing statutes. In addition to any other authorized person, the architect or engineer hired by an agency or governing authority with respect to any public construction contract shall have the authority, when granted by an agency or governing authority, to authorize changes or modifications to the original contract without the necessity of prior approval of the agency or governing authority when any such change or modification is less than one percent (1%) of the total contract amount. The agency or governing authority may limit the number, manner or frequency of such emergency changes or modifications.
(h) In the event any agency or governing authority shall have advertised for bids for the purchase of gas, diesel fuel, oils and other petroleum products and coal and no acceptable bids can be obtained, such agency or governing authority is authorized and directed to enter into any negotiations necessary to secure the lowest and best contract available for the purchase of such commodities.
(i) Any agency or governing authority authorized to enter into contracts for the construction, maintenance, surfacing or repair of highways, roads or streets, may include in its bid proposal and contract documents a price adjustment clause with relation to the cost to the contractor, including taxes, based upon an industry-wide cost index, of petroleum products including asphalt used in the performance or execution of the contract or in the production or manufacture of materials for use in such performance. Such industry-wide index shall be established and published monthly by the State Department of Transportation with a copy thereof to be mailed, upon request, to the clerks of the governing authority of each municipality and the clerks of each board of supervisors throughout the state. The price adjustment clause shall be based on the cost of such petroleum products only and shall not include any additional profit or overhead as part of the adjustment. The bid proposals or document contract shall contain the basis and methods of adjusting unit prices for the change in the cost of such petroleum products.
(j) If the executive head of any agency of the state shall determine that an emergency exists in regard to the purchase of any commodities or repair contracts, so that the delay incident to giving opportunity for competitive bidding would be detrimental to the interests of the state, then the provisions herein for competitive bidding shall not apply and the head of such agency shall be authorized to make the purchase or repair. Total purchases so made shall only be for the purpose of meeting needs created by the emergency situation. In the event such executive head is responsible to an agency board, at the meeting next following the emergency purchase, documentation of the purchase, including a description of the commodity purchased, the purchase price thereof and the nature of the emergency shall be presented to the board and placed on the minutes of the board of such agency. The head of such agency shall, at the earliest possible date following such emergency purchase, file with the Department of Finance and Administration (i) a statement under oath certifying the conditions and circumstances of the emergency, and (ii) a certified copy of the appropriate minutes of the board of such agency, if applicable.
(k) If the governing authority, or the governing authority acting through its designee, shall determine that an emergency exists in regard to the purchase of any commodities or repair contracts, so that the delay incident to giving opportunity for competitive bidding would be detrimental to the interest of the governing authority, then the provisions herein for competitive bidding shall not apply and any officer or agent of such governing authority having general or special authority therefor in making such purchase or repair shall approve the bill presented therefor, and he shall certify in writing thereon from whom such purchase was made, or with whom such a repair contract was made. At the board meeting next following the emergency purchase or repair contract, documentation of the purchase or repair contract, including a description of the commodity purchased, the price thereof and the nature of the emergency shall be presented to the board and shall be placed on the minutes of the board of such governing authority.
(l) The commissioners or board of trustees of any hospital owned or owned and operated separately or jointly by one or more counties, cities, towns, supervisors districts or election districts, or combinations thereof, may contract with such lowest and best bidder for the purchase or lease of any commodity under a contract of purchase or lease-purchase agreement whose obligatory terms do not exceed five (5) years. In addition to the authority granted herein, the commissioners or board of trustees are authorized to enter into contracts for the lease of equipment or services, or both, which it considers necessary for the proper care of patients if, in its opinion, it is not financially feasible to purchase the necessary equipment or services. Any such contract for the lease of equipment or services executed by the commissioners or board shall not exceed a maximum of five (5) years' duration and shall include a cancellation clause based on unavailability of funds. If such cancellation clause is exercised, there shall be no further liability on the part of the lessee.
(m) Excepted from bid requirements are:
(i) Purchasing agreements, contracts and maximum price regulations executed or approved by the Department of Finance and Administration.
(ii) Repairs to equipment, when such repairs are made by repair facilities in the private sector; however, engines, transmissions, rear axles and/or other such components shall not be included in this exemption when replaced as a complete unit instead of being repaired and the need for such total component replacement is known before disassembly of the component; provided, however, that invoices identifying the equipment, specific repairs made, parts identified by number and name, supplies used in such repairs, and the number of hours of labor and costs therefor shall be required for the payment for such repairs.
(iii) Purchases of parts for repairs to equipment, when such repairs are made by personnel of the agency or governing authority; however, entire assemblies, such as engines or transmissions, shall not be included in this exemption when the entire assembly is being replaced instead of being repaired.
(iv) Raw unprocessed deposits of gravel or fill dirt which are to be removed and transported by the purchaser.
(v) Motor vehicles or other equipment purchased from a federal or state agency or a governing authority at a public auction held for the purpose of disposing of such vehicles or other equipment. Any purchase by a governing authority under the exemption authorized by this paragraph (v) shall require advance authorization spread upon the minutes of the governing authority to include the listing of the item or items authorized to be purchased and the maximum bid authorized to be paid for each item or items.
(vi) Purchases, sales, transfers or trades by governing authorities or state agencies when such purchases, sales, transfers or trades are made by a private treaty agreement or through means of negotiation, from any federal agency or authority, another governing authority or state agency of the State of Mississippi, or any state agency of another state. Nothing in this section shall permit such purchases through public auction except as provided for in paragraph (v) of this section. It is the intent of this section to allow governmental entities to dispose of and/or purchase commodities from other governmental entities at a price that is agreed to by both parties. This shall allow for purchases and/or sales at prices which may be determined to be below the market value if the selling entity determines that the sale at below market value is in the best interest of the taxpayers of the state. Governing authorities shall place the terms of the agreement and any justification on the minutes, and state agencies shall obtain approval from the Department of Finance and Administration, prior to releasing or taking possession of the commodities.
(vii) Perishable supplies or foods purchased for use in connection with hospitals, the school lunch programs, homemaking programs and for the feeding of county or municipal prisoners.
(viii) Noncompetitive items available from one (1) source only.
(ix) Construction of incinerators and other facilities for disposal of solid wastes in which products either generated therein, such as steam, or recovered therefrom, such as materials for recycling, are to be sold or otherwise disposed of; provided, however, in constructing such facilities a governing authority or agency shall publicly issue requests for proposals, advertised for in the same manner as provided herein for seeking bids for public construction projects, concerning the design, construction, ownership, operation and/or maintenance of such facilities, wherein such requests for proposals when issued shall contain terms and conditions relating to price, financial responsibility, technology, environmental compatibility, legal responsibilities and such other matters as are determined by the governing authority or agency to be appropriate for inclusion; and after responses to the request for proposals have been duly received, the governing authority or agency may select the most qualified proposal or proposals on the basis of price, technology and other relevant factors and from such proposals, but not limited to the terms thereof, negotiate and enter contracts with one or more of the persons or firms submitting proposals.
(x) Supplies, commodities and equipment purchased by hospitals through group purchase programs pursuant to Section 31-7-38.
(xi) Purchases of data processing equipment made by governing authorities under the provisions of purchase agreements, contracts or maximum price regulations executed or approved by the Mississippi Department of Information Technology Services.
(xii) Energy efficiency services and equipment acquired by school districts, junior colleges, institutions of higher learning and state agencies or other applicable governmental entities on a shared-savings, lease or lease-purchase basis pursuant to Section 31-7-14.
(xiii) Purchases of contracts for fire insurance, automobile insurance, casualty insurance, health insurance and liability insurance by governing authorities or agencies.
(xiv) Purchases of coal and/or natural gas by municipally-owned electric power generating systems that have the capacity to use both coal and natural gas for the generation of electric power.
(xv) Purchases by libraries or for libraries of books and periodicals; processed film, video cassette tapes, filmstrips and slides; recorded audio tapes, cassettes and diskettes; and any such items as would be used for teaching, research or other information distribution; however, equipment such as projectors, recorders, audio or video equipment, and monitor televisions are not exempt under this paragraph.
(xvi) Purchases of unmarked vehicles when such purchases are made in accordance with purchasing regulations adopted by the Department of Finance and Administration pursuant to Section 31-7-9(2).
(xvii) Sales, transfers or trades of any personal property between governing authorities within a county or any such transaction involving governing authorities of two (2) or more counties.
(xviii) Purchases of ballots printed pursuant to Section 23-15-351.
(xix) From and after July 1, 1990, contracts by Mississippi Authority for Educational Television with any private educational institution or private nonprofit organization whose purposes are educational in regard to the construction, purchase, lease or lease-purchase of facilities and equipment and the employment of personnel for providing multichannel interactive video systems (ITSF) in the school districts of this state.
(xx) From and after January 1, 1991, purchases made by state agencies involving any item that is manufactured, processed, grown or produced from the state's prison industries.
(xxi) Purchases of surveillance equipment or any other high-tech equipment to be used by narcotics agents in undercover operations, provided that any such purchase shall be in compliance with regulations established by the Department of Finance and Administration.
(xxii) Purchases by community or junior colleges of textbooks which are obtained for the purpose of renting such books to students as part of a book service system.
(xxiii) Purchases of commodities made by school districts from vendors with which any levying authority of the school district, as defined in Section 37-57-1, has contracted through competitive bidding procedures for purchases of the same commodities.
(xxiv) Emergency purchases made by the Public Employees' Retirement System pursuant to Section 25-11-15(7).
(xxv) Contracts or purchases by the State Prison Emergency Construction and Management Board when exercising its emergency powers to remove two thousand (2,000) inmates from county jails; however, exemptions under this subparagraph (xxv) do not apply to contracts or purchases for private correctional facilities, the South Mississippi Correctional Institution and the Central Mississippi Correctional Facility. This subparagraph shall stand repealed from and after July 1, 1997.
(xxvi) Contracts for garbage collection or disposal, contracts for solid waste collection or disposal and contracts for sewage collection or disposal.
(xxvii) Professional maintenance program contracts for the repair or maintenance of municipal water tanks, which provide professional services needed to maintain municipal water storage tanks for a fixed annual fee for a duration of two (2) or more years.
(xxviii) Major procurements as defined by Section 5, Senate Bill No. 3045, 1998 Regular Session, by the Mississippi Lottery Corporation.
In connection with the purchase of noncompetitive items only available from one (1) source, a certification of the conditions and circumstances requiring the purchase shall be filed by the agency with the Department of Finance and Administration and by the governing authority with the board of the governing authority. Upon receipt of such certification the Department of Finance and Administration or the board of the governing authority, as the case may be, may, in writing, authorize the purchase, which authority shall be noted on the minutes of the body at the next regular meeting thereafter. In such situations, a governing authority is not required to obtain the approval of the Department of Finance and Administration.
(n) (i) All contracts for the purchase of:
(A) Commodities, equipment and public construction (including, but not limited to, repair and maintenance), and
(B) Water lines, sewer lines, storm drains, drainage ditches, asphalt milling, traffic striping, asphalt overlay of streets, and curb and gutter (not to exceed One Hundred Fifty Thousand Dollars ($150,000.00) per project listed in this item B) may be let for periods of not more than twenty-four (24) months in advance, subject to applicable statutory provisions prohibiting the letting of contracts during specified periods near the end of terms of office.
(ii) All purchases made by governing authorities, including purchases made pursuant to the provisions of subparagraph (i) of this paragraph (n), may be made upon one (1) purchase order issued per month to each individual vendor prior to delivery of such commodities provided that each individual delivery, load or shipment purchased is properly requisitioned and is properly received and receipted by signed ticket, receipt or invoice, indicating thereon the point of delivery, and provided that, with respect to counties, such commodities are properly accounted for by the receiving clerk or an assistant receiving clerk as provided by Section 31-7-109. Such purchase order shall be invalid on the first calendar day of the month immediately following the month in which it was issued. Purchases in such month immediately following may be made only if a purchase order is issued for such month. Each monthly purchase order shall be retained in the records of the governing authority. Agencies may make purchases as authorized under this subparagraph (ii) in accordance with such regulations, policies and procedures as are promulgated by the Department of Finance and Administration.
(o) No contract or purchase as herein authorized shall be made for the purpose of circumventing the provisions of this section requiring competitive bids, nor shall it be lawful for any person or concern to submit individual invoices for amounts within those authorized for a contract or purchase where the actual value of the contract or commodity purchased exceeds the authorized amount and the invoices therefor are split so as to appear to be authorized as purchases for which competitive bids are not required. Submission of such invoices shall constitute a misdemeanor punishable by a fine of not less than Five Hundred Dollars ($500.00) nor more than One Thousand Dollars ($1,000.00), or by imprisonment for thirty (30) days in the county jail, or both such fine and imprisonment. In addition, the claim or claims submitted shall be forfeited.
(p) When in response to a proper advertisement therefor, no bid firm as to price is submitted to an electric utility for power transformers, distribution transformers, power breakers, reclosers or other articles containing a petroleum product, the electric utility may accept the lowest and best bid therefor although the price is not firm.
(q) The prohibitions and restrictions set forth in Sections 19-11-27, 21-35-27 and 31-7-49 shall not apply to a contract, lease or lease-purchase agreement entered pursuant to the requirements of this chapter.
(r) For the purposes of this section, the term "purchase" shall mean the total amount of money encumbered by a single purchase order.
(s) Any governing authority or agency of the state shall, before contracting for the services and products of a fuel management or fuel access system, enter into negotiations with not fewer than two (2) sellers of fuel management or fuel access systems for competitive written bids to provide the services and products for the systems. In the event that the governing authority or agency cannot locate two (2) sellers of such systems or cannot obtain bids from two (2) sellers of such systems, it shall show proof that it made a diligent, good-faith effort to locate and negotiate with two (2) sellers of such systems. Such proof shall include, but not be limited to, publications of a request for proposals and letters soliciting negotiations and bids. For purposes of this paragraph (s), a fuel management or fuel access system is an automated system of acquiring fuel for vehicles as well as management reports detailing fuel use by vehicles and drivers, and the term "competitive written bid" shall have the meaning as defined in paragraph (b) of this section.
(t) Before entering into any contract for garbage collection or disposal, contract for solid waste collection or disposal or contract for sewage collection or disposal, which involves an expenditure of more than Fifty Thousand Dollars ($50,000.00), a governing authority or agency shall issue publicly a request for proposals concerning the specifications for such services which shall be advertised for in the same manner as provided in this section for seeking bids for purchases which involve an expenditure of more than Five Thousand Dollars ($5,000.00). Any request for proposals when issued shall contain terms and conditions relating to price, financial responsibility, technology, legal responsibilities and other relevant factors as are determined by the governing authority or agency to be appropriate for inclusion; all factors determined relevant by the governing authority or agency or required by this paragraph (t) shall be duly included in the advertisement to elicit proposals. After responses to the request for proposals have been duly received, the governing authority or agency shall select the most qualified proposal or proposals on the basis of price, technology and other relevant factors and from such proposals, but not limited to the terms thereof, negotiate and enter contracts with one or more of the persons or firms submitting proposals. If the governing authority or agency deems none of the proposals to be qualified or otherwise acceptable, the request for proposals process may be reinitiated.
(u) Notwithstanding any provision of this section to the contrary, any agency or governing authority, by order placed on its minutes, may, in its discretion, set aside not more than twenty percent (20%) of its anticipated annual expenditures for the purchase of commodities from minority businesses; however, all such set-aside purchases shall comply with all purchasing regulations promulgated by the Department of Finance and Administration and shall be subject to bid requirements under this section. Set-aside purchases for which competitive bids are required shall be made from the lowest and best minority business bidder. For the purposes of this paragraph, the term "minority business" means a business which is owned by a majority of persons who are United States citizens or permanent resident aliens (as defined by the Immigration and Naturalization Service) of the United States, and who are Asian, Black, Hispanic or Native American, according to the following definitions:
(i) "Asian" means persons having origins in any of the original people of the Far East, Southeast Asia, the Indian subcontinent, or the Pacific Islands.
(ii) "Black" means persons having origins in any black racial group of Africa.
(iii) "Hispanic" means persons of Spanish or Portuguese culture with origins in Mexico, South or Central America, or the Caribbean Islands, regardless of race.
(iv) "Native American" means persons having origins in any of the original people of North America, including American Indians, Eskimos and Aleuts.
(v) The architect, engineer or other representative designated by the agency or governing authority that is contracting for public construction or renovation may prepare and submit to the contractor only one (1) preliminary punch list of items that do not meet the contract requirements at the time of substantial completion and one (1) final list immediately before final completion and final payment.
(w) Nothing in this section shall be construed as authorizing any purchase not authorized by law.
SECTION 33. Section 67-1-71, Mississippi Code of 1972, is amended as follows:
67-1-71. The commission may revoke or suspend any permit issued by it for a violation by the permittee of any of the provisions of this chapter or of the regulations promulgated under it by the commission.
Permits must be revoked or suspended for the following causes:
(a) Conviction of the permittee for the violation of any of the provisions of this chapter;
(b) Willful failure or refusal by any permittee to comply with any of the provisions of this chapter or of any rule or regulation adopted pursuant thereto;
(c) The making of any materially false statement in any application for a permit;
(d) Conviction of one (1) or more of the clerks, agents or employees of the permittee, of any violation of this chapter upon the premises covered by such permit within a period of time as designated by the rules or regulations of the commission;
(e) The possession on the premises of any retail permittee of any alcoholic beverages upon which the tax has not been paid;
(f) The willful failure of any permittee to keep the records or make the reports required by this chapter, or to allow an inspection of such records by any duly authorized person;
(g) The suspension or revocation of a permit issued to the permittee by the federal government, or conviction of violating any federal law relating to alcoholic beverages;
(h) The failure to furnish any bond required by this chapter within fifteen (15) days after notice from the commission; and
(i) The conducting of any form of illegal gambling on the premises of any permittee or on any premises connected therewith or the presence on any such premises of any gambling device with the knowledge of the permittee.
The provisions of item (i) of this section shall not apply to gambling or the presence of any gambling devices, with knowledge of the permittee, on board a cruise vessel in the waters within the State of Mississippi, which lie adjacent to the State of Mississippi south of the three (3) most southern counties in the State of Mississippi, or on any vessel as defined in Section 27-109-1 whenever such vessel is on the Mississippi River or navigable waters within any county bordering on the Mississippi River. The commission may, in its discretion, issue on-premises retailer's permits to a common carrier of the nature described in this paragraph.
The provisions of item (i) of this section shall not apply to the operation of any game or lottery authorized by the Mississippi Lottery Corporation.
No permit shall be revoked except after a hearing by the commission with reasonable notice to the permittee and an opportunity for him to appear and defend.
In addition to the causes specified in this section and other provisions of this chapter, the commission shall be authorized to suspend the permit of any permit holder for being out of compliance with an order for support, as defined in Section 93-11-153. The procedure for suspension of a permit for being out of compliance with an order for support, and the procedure for the reissuance or reinstatement of a permit suspended for that purpose, and the payment of any fees for the reissuance or reinstatement of a permit suspended for that purpose, shall be governed by Section 93-11-157 or 93-11-163, as the case may be. If there is any conflict between any provision of Section 93-11-157 or 93-11-163 and any provision of this chapter, the provisions of Section 93-11-157 or 93-11-163, as the case may be, shall control.
SECTION 34. Section 75-76-5, Mississippi Code of 1972, is amended as follows:
75-76-5. As used in this chapter, unless the context requires otherwise:
(a) "Applicant" means any person who has applied for or is about to apply for a state gaming license, registration or finding of suitability under the provisions of this chapter or approval of any act or transaction for which approval is required or permitted under the provisions of this chapter.
(b) "Application" means a request for the issuance of a state gaming license, registration or finding of suitability under the provisions of this chapter or for approval of any act or transaction for which approval is required or permitted under the provisions of this chapter but does not include any supplemental forms or information that may be required with the application.
(c) "Associated equipment" means any equipment or mechanical, electromechanical or electronic contrivance, component or machine used remotely or directly in connection with gaming or with any game, race book or sports pool that would not otherwise be classified as a gaming device, including dice, playing cards, links which connect to progressive slot machines, equipment which affects the proper reporting of gross revenue, computerized systems of betting at a race book or sports pool, computerized systems for monitoring slot machines, and devices for weighing or counting money.
(d) "Chairman" through September 30, 1993, means the Chairman of the State Tax Commission, and thereafter means the Chairman of the Mississippi Gaming Commission.
(e) "Commission" or "Mississippi Gaming Commission," through September 30, 1993, means the State Tax Commission, and thereafter means the Mississippi Gaming Commission.
(f) "Commission member" through September 30, 1993, means a member of the State Tax Commission, and thereafter means a member of the Mississippi Gaming Commission.
(g) "Credit instrument" means a writing which evidences a gaming debt owed to a person who holds a license at the time the debt is created, and includes any writing taken in consolidation, redemption or payment of a prior credit instrument.
(h) "Enforcement division" means a particular division supervised by the executive director that provides enforcement functions.
(i) "Establishment" means any premises wherein or whereon any gaming is done.
(j) "Executive director" through September 30, 1993, means the director appointed by the State Tax Commission pursuant to Section 75-76-15(1), and thereafter means the Executive Director of the Mississippi Gaming Commission.
(k) Except as otherwise provided by law, "game" or "gambling game" means any banking or percentage game played with cards, with dice or with any mechanical, electromechanical or electronic device or machine for money, property, checks, credit or any representative of value, including, without limiting the generality of the foregoing, faro, monte, roulette, keno, fan-tan, twenty-one, blackjack, seven-and-a-half, big injun, klondike, craps, poker, chuck-a-luck (dai shu), wheel of fortune, chemin de fer, baccarat, pai gow, beat the banker, panguingui, slot machine, or any other game or device approved by the commission. However, "game" or "gambling game" shall not include bingo games or raffles which are held pursuant to the provisions of Section 97-33-51, or any games or lottery authorized by the Mississippi Lottery Corporation.
The commission shall not be required to recognize any game hereunder with respect to which the commission determines it does not have sufficient experience or expertise.
(l) "Gaming" or "gambling" means to deal, operate, carry on, conduct, maintain or expose for play any game as defined in this chapter.
(m) "Gaming device" means any mechanical, electromechanical or electronic contrivance, component or machine used in connection with gaming or any game which affects the result of a wager by determining win or loss. The term includes a system for processing information which can alter the normal criteria of random selection, which affects the operation of any game, or which determines the outcome of a game. The term does not include a system or device which affects a game solely by stopping its operation so that the outcome remains undetermined, and does not include any antique coin machine as defined in Section 27-27-12.
(n) "Gaming employee" means any person connected directly with the operation of a gaming establishment licensed to conduct any game, including:
(iii) Change personnel;
(iv) Counting room personnel;
(vii) Hosts or other persons empowered to extend credit or complimentary services;
(viii) Keno runners;
(ix) Keno writers;
(x) Machine mechanics;
(xi) Security personnel;
(xii) Shift or pit bosses;
(xiv) Supervisors or managers; and
(xv) Ticket writers.
The term "gaming employee" also includes employees of manufacturers or distributors of gaming equipment within this state whose duties are directly involved with the manufacture, repair or distribution of gaming equipment.
"Gaming employee" does not include bartenders, cocktail waitresses or other persons engaged in preparing or serving food or beverages unless acting in some other capacity.
(o) "Gaming license" means any license issued by the state which authorizes the person named therein to engage in gaming.
(p) "Gross revenue" means the total of all of the following, less the total of all cash paid out as losses to patrons and those amounts paid to purchase annuities to fund losses paid to patrons over several years by independent financial institutions:
(i) Cash received as winnings;
(ii) Cash received in payment for credit extended by a licensee to a patron for purposes of gaming; and
(iii) Compensation received for conducting any game in which the licensee is not party to a wager.
For the purposes of this definition, cash or the value of noncash prizes awarded to patrons in a contest or tournament are not losses.
The term does not include:
(i) Counterfeit money or tokens;
(ii) Coins of other countries which are received in gaming devices;
(iii) Cash taken in fraudulent acts perpetrated against a licensee for which the licensee is not reimbursed; or
(iv) Cash received as entry fees for contests or tournaments in which the patrons compete for prizes.
(q) "Hearing examiner" means a member of the Mississippi Gaming Commission or other person authorized by the commission to conduct hearings.
(r) "Investigation division" means a particular division supervised by the executive director that provides investigative functions.
(s) "License" means a gaming license or a manufacturer's, seller's or distributor's license.
(t) "Licensee" means any person to whom a valid license has been issued.
(u) "License fees" means monies required by law to be paid to obtain or continue a gaming license or a manufacturer's, seller's or distributor's license.
(v) "Licensed gaming establishment" means any premises licensed pursuant to the provisions of this chapter wherein or whereon gaming is done.
(w) "Manufacturer's," "seller's" or "distributor's" license means a license issued pursuant to Section 75-76-79.
(x) "Navigable waters" shall have the meaning ascribed to such term under Section 27-109-1.
(y) "Operation" means the conduct of gaming.
(z) "Party" means the Mississippi Gaming Commission and any licensee or other person appearing of record in any proceeding before the commission; or the Mississippi Gaming Commission and any licensee or other person appearing of record in any proceeding for judicial review of any action, decision or order of the commission.
(aa) "Person" includes any association, corporation, firm, partnership, trust or other form of business association as well as a natural person.
(bb) "Premises" means land, together with all buildings, improvements and personal property located thereon, and includes all parts of any vessel or cruise vessel.
(cc) "Race book" means the business of accepting wagers upon the outcome of any event held at a track which uses the pari-mutuel system of wagering.
(dd) "Regulation" means a rule, standard, directive or statement of general applicability which effectuates law or policy or which describes the procedure or requirements for practicing before the commission. The term includes a proposed regulation and the amendment or repeal of a prior regulation but does not include:
(i) A statement concerning only the internal management of the commission and not affecting the rights or procedures available to any licensee or other person;
(ii) A declaratory ruling;
(iii) An interagency memorandum;
(iv) The commission's decision in a contested case or relating to an application for a license; or
(v) Any notice concerning the fees to be charged which are necessary for the administration of this chapter.
(ee) "Respondent" means any licensee or other person against whom a complaint has been filed with the commission.
(ff) "Slot machine" means any mechanical, electrical or other device, contrivance or machine which, upon insertion of a coin, token or similar object, or upon payment of any consideration, is available to play or operate, the play or operation of which, whether by reason of the skill of the operator or application of the element of chance, or both, may deliver or entitle the person playing or operating the machine to receive cash, premiums, merchandise, tokens or any thing of value, whether the payoff is made automatically from the machine or in any other manner. The term does not include any antique coin machine as defined in Section 27-27-12.
(gg) "Sports pool" means the business of accepting wagers on sporting events, except for athletic events, by any system or method of wagering other than the system known as the "pari-mutuel method of wagering."
(hh) "Temporary work permit" means a work permit which is valid only for a period not to exceed ninety (90) days from its date of issue and which is not renewable.
(ii) "Vessel" or "cruise vessel" shall have the meanings ascribed to such terms under Section 27-109-1.
(jj) "Work permit" means any card, certificate or permit issued by the commission, whether denominated as a work permit, registration card or otherwise, authorizing the employment of the holder as a gaming employee. A document issued by any governmental authority for any employment other than gaming is not a valid work permit for the purposes of this chapter.
(kk) "School or training institution" means any school or training institution which is licensed by the commission to teach or train gaming employees pursuant to Section 75-76-34.
(ll) "Cheat" means to alter the selection of criteria that determines:
(i) The rules of a game; or
(ii) The amount or frequency of payment in a game.
SECTION 35. Section 97-33-9, Mississippi Code of 1972, is amended as follows:
97-33-9. If any person shall be guilty of keeping or exhibiting any game or gaming table commonly called A.B.C. or E.O. roulette or rowley-powley, or rouge et noir, roredo, keno, monte, or any faro-bank, or other game, gaming table, or bank of the same or like kind or any other kind or description under any other name whatever, or shall be in any manner either directly or indirectly interested or concerned in any gaming tables, banks, or games, either by furnishing money or articles for the purpose of carrying on the same, being interested in the loss or gain of said table, bank or games, or employed in any manner in conducting, carrying on, or exhibiting said gaming tables, games, or banks, every person so offending and being thereof convicted, shall be fined not less than Twenty-five Dollars ($25.00) nor more than Two Thousand Dollars ($2,000.00), or be imprisoned in the county jail not longer than two (2) months, or by both such fine and imprisonment, in the discretion of the court. Nothing in this section shall apply to any person who owns, possesses, controls, installs, procures, repairs or transports any gambling device, machine or equipment in accordance with subsection (4) of Section 97-33-7 or Section 75-76-34.
The provisions of this section shall not apply to the operation of any game or lottery authorized by the Mississippi Lottery Corporation.
SECTION 36. Section 97-33-11, Mississippi Code of 1972, is amended as follows:
97-33-11. It shall not be lawful for any association of persons of the character commonly known as a "club," whether such association be incorporated or not, in any manner, either directly or indirectly, to have any interest or concern in any gambling tables, banks, or games, by means of what is sometimes called a "rake-off" or "take-out," or by means of an assessment upon certain combinations, or hands at cards, or by means of a percentage extracted from players, or an assessment made upon, or a contribution from them, or by any other means, device or contrivance whatsoever. It shall not be lawful for such an association to lend or advance money or any other valuable thing to any person engaged or about to engage in playing any game of chance prohibited by law, or to become responsible directly or indirectly for any money or other valuable thing lost, or which may be lost, by any player in any such game. If any such association shall violate any of the provisions of this section each and every member thereof shall be guilty of a misdemeanor, and, upon conviction thereof, shall be fined in a sum not more than Five Hundred Dollars ($500.00); and unless such fine and costs be immediately paid, shall be imprisoned in the county jail for not less than five (5) nor more than twenty (20) days. Each grand jury shall cause such of the members of such an association as it may choose to appear before them and submit to examination touching the observance or nonobservance by such association of the provisions hereof.
The provisions of this section shall not apply to the operation of any game or lottery authorized by the Mississippi Lottery Corporation.
SECTION 37. Section 97-33-13, Mississippi Code of 1972, is amended as follows:
97-33-13. Any owner, lessee, or occupant of any outhouse or other building, who shall knowingly permit or suffer any of the before mentioned tables, banks, or games, or any other game prohibited by law, to be carried on, kept, or exhibited in his said house or other building, or on his lot or premises, being thereof convicted, shall be fined not less than One Hundred Dollars ($100.00) nor more than Two Thousand Dollars ($2,000.00).
The provisions of this section shall not apply to the operation of any game or lottery authorized by the Mississippi Lottery Corporation.
SECTION 38. Section 97-33-21, Mississippi Code of 1972, is amended as follows:
97-33-21. Any person of full age who shall bet any money or thing of any value with a minor, or allow a minor to bet at any game or gaming-table exhibited by him, or in which he is interested or in any manner concerned, on conviction thereof, shall be fined not less than Three Hundred Dollars ($300.00) and imprisoned not less than three (3) months.
The provisions of this section shall only apply to minors under the age of eighteen (18) as it might apply to the operation of any game or lottery authorized by the Mississippi Lottery Corporation.
SECTION 39. Section 97-33-23, Mississippi Code of 1972, is amended as follows:
97-33-23. Any person of full age who shall bet any money or thing of value with a minor, knowing such minor to be under the age of twenty-one (21) years, or allowing any such minor to bet at any game or games, or at any gaming-table exhibited by him, or in which he is interested or in any manner concerned, on conviction thereof, shall be punished by imprisonment in the penitentiary not exceeding two (2) years.
The provisions of this section shall only apply to minors under the age of eighteen (18) as it might apply to the operation of any game or lottery authorized by the Mississippi Lottery Corporation.
SECTION 40. Section 97-33-31, Mississippi Code of 1972, is amended as follows:
97-33-31. If any person, in order to raise money for himself or another, or for any purpose whatever, shall publicly or privately put up a lottery to be drawn or adventured for, he shall, on conviction, be imprisoned in the penitentiary not exceeding five (5) years.
SECTION 41. Section 97-33-33, Mississippi Code of 1972, is amended as follows:
97-33-33. If any person shall in any way advertise any lottery whatever, no matter where located, or shall knowingly have in his possession any posters or other lottery advertisements of any kind -- save a regularly issued newspaper containing such an advertisement without intent to circulate the same as an advertisement -- he shall, on conviction, be fined not less than Twenty-five Dollars ($25.00) nor more than One Hundred Dollars ($100.00), or be imprisoned in the county jail not exceeding three (3) months, or both.
SECTION 42. Section 97-33-35, Mississippi Code of 1972, is amended as follows:
97-33-35. If any newspaper published or circulated in this state shall contain an advertisement of any lottery whatever, or any matter intended to advertise a lottery, no matter where located, the editor or editors, publisher or publishers, and the owner or owners thereof permitting the same, shall be guilty of a misdemeanor, and, on conviction, shall be fined not less than One Hundred Dollars ($100.00) nor more than One Thousand Dollars ($1,000.00), and be imprisoned in the county jail not less than ten (10) days nor more than three (3) months, for each offense. The issuance of each separate daily or weekly edition of the newspaper that shall contain such an advertisement shall be considered a separate offense.
SECTION 43. Section 97-33-37, Mississippi Code of 1972, is amended as follows:
97-33-37. If any news dealer or other person shall, directly or indirectly, sell or offer for sale any newspaper or other publication containing a lottery advertisement, he shall be guilty of a misdemeanor, and upon conviction, shall be fined not less than Ten Dollars ($10.00) or imprisoned not less than ten (10) days or both.
SECTION 44. Section 97-33-39, Mississippi Code of 1972, is amended as follows:
97-33-39. If any person shall sell, or offer or expose for sale, any lottery ticket, whether the lottery be in or out of this state, or for or in any other state, territory, district, or country, he shall, on conviction, be fined not less than Twenty-five Dollars ($25.00) nor more than One Hundred Dollars ($100.00), or imprisoned in the county jail not less than ten (10) days nor more than sixty (60) days, or both.
SECTION 45. Section 97-33-41, Mississippi Code of 1972, is amended as follows:
97-33-41. If any person shall buy in this state any lottery ticket, whether the lottery be in or out of this state, or of or in any other state, territory, district, or country, he shall, on conviction, be fined not less than Five Dollars ($5.00) nor more than Twenty-five Dollars ($25.00), or be imprisoned in the county jail not exceeding ten (10) days, or both.
SECTION 46. Section 97-33-43, Mississippi Code of 1972, is amended as follows:
97-33-43. If any railroad company shall suffer or permit the sale of a lottery ticket of any kind on its cars, or at its depots or depot grounds, or by its employees, no matter where the lottery is located, it shall be guilty of a misdemeanor, and, on conviction shall be fined not less than Twenty Dollars ($20.00) nor more than One Hundred Dollars ($100.00) for every such ticket so sold.
SECTION 47. Section 97-33-45, Mississippi Code of 1972, is amended as follows:
97-33-45. If the owner or owners of any steamboat shall suffer or permit the sale of a lottery ticket of any kind on his or their boat, or by his or their employees, no matter where the lottery is located, he or they shall be guilty of a misdemeanor, and shall, on conviction, be punished as prescribed in Section 97-33-43, Mississippi Code of 1972.
SECTION 48. Section 97-33-47, Mississippi Code of 1972, is amended as follows:
97-33-47. If any person shall act as agent for any lottery or lottery company, no matter where domiciled or located, or if he shall assume to so act as agent, or if he receive any money or other thing for any such lottery or lottery company, or deliver to any person any ticket or tickets, prize or prizes, or other thing from such lottery or lottery company, he shall, on conviction, be fined not less than One Hundred Dollars ($100.00), nor more than Five Hundred Dollars ($500.00), and be imprisoned in the county jail not less than three (3) months nor more than six (6) months.
SECTION 49. Section 97-33-49, Mississippi Code of 1972, is amended as follows:
97-33-49. Except as otherwise provided in Section 97-33-51, if any person, in order to raise money for himself or another, shall publicly or privately put up or in any way offer any prize or thing to be raffled or played for, he shall, on conviction, be fined not more than Twenty Dollars ($20.00), or be imprisoned not more than one (1) month in the county jail.
SECTION 50. This act shall take effect and be in force from and after its passage.