MISSISSIPPI LEGISLATURE
2024 Regular Session
To: Veterans and Military Affairs; Gaming
By: Senator(s) Tate
AN ACT TO CODIFY SECTION 27-115-8, MISSISSIPPI CODE OF 1972, TO CREATE A "VETERANS' ASSISTANCE LOTTERY" TO BE ADMINISTERED BY THE MISSISSIPPI LOTTERY CORPORATION; TO PRESCRIBE THE DUTIES AND RESPONSIBILITIES OF THE CORPORATION TO MARKET AND ADVERTISE THE VETERANS LOTTERY TO ENSURE THAT THE GAME REMAINS COMPETITIVE; TO PROVIDE FOR SALES AGENTS; TO CREATE THE FUND FOR VETERANS' ASSISTANCE AS A SPECIAL FUND IN THE STATE TREASURY WHICH SHALL RECEIVE PROCEEDS FROM THE VETERANS LOTTERY WHICH SHALL BE APPROPRIATED TO THE MISSISSIPPI VETERANS' AFFAIRS BOARD FOR THE SUPPORT OF VETERANS PROGRAMS IN MISSISSIPPI; TO AMEND SECTION 27-115-51, MISSISSIPPI CODE OF 1972, TO PROVIDE FOR THE DEPOSIT OF MONIES RECEIVED FROM THE SALE OF VETERANS' LOTTERY TICKETS INTO THE FUND FOR VETERANS' ASSISTANCE; TO AMEND SECTIONS 27-115-5, 27-115-17 AND 27-115-21, MISSISSIPPI CODE OF 1972, IN CONFORMITY; AND FOR RELATED PURPOSES.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:
SECTION 1. The following shall be codified as Section 27-115-8, Mississippi Code of 1972:
27-115-8. (1) The Mississippi Lottery Corporation created under Section 27-115-7 shall have the following additional powers and duties: The corporation shall operate an instant-ticket lottery game called the "Veterans' Assistance Lottery" to benefit the Fund for Veterans' Assistance established by Section 27-115-51.
(2) The corporation shall:
(a) Determine the ticket price, payout amounts, and manner in which the game is conducted;
(b) Make tickets to the game available for sale continuously to the extent practicable; and
(c) Change the design or theme of the game regularly to ensure that the game remains competitive with other instant-ticket lottery games offered by the commission.
(3) The corporation shall market and advertise the lottery game operated under this section in a manner intended to inform the public that the game tickets are available for purchase and that the game proceeds are used to fund veterans programs in this state. The game tickets must clearly state that the game proceeds are used to benefit the veterans in this state. The Mississippi Veterans' Affairs Board may make recommendations to the Mississippi Lottery Corporation relating to the marketing and advertising of the game.
(4) The corporation shall encourage each sales agent that sells tickets to instant-ticket games or similar types of lottery games to sell tickets to the game operated under this section.
(5) No organization that would otherwise be eligible to receive funds from the state lottery account attributable to any lottery game authorized by this section may receive any such funds if it conducts illegal gambling or the illegal operation of gambling devices as defined by Mississippi law or allows illegal gambling or the illegal operation of gambling devices to be conducted on its property or in its facilities.
SECTION 2. Section 27-115-5, Mississippi Code of 1972, is amended as follows:
27-115-5. As used in this chapter, the following words and phrases shall have the following meanings unless the context clearly 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 chapter, which utilizes the sale of paper tickets for various intrastate and multistate or multisovereign lottery games (such as Pick-3, Pick-4, Mega Millions, Powerball), and "instant tickets" as defined, but specifically excluding any form of "video lottery" or use of "video lottery terminal" as defined.
(c) "Major procurement" means any item, product or service in the amount of One Million Dollars ($1,000,000.00) or more, including, but not limited to, major advertising contracts, annuity contracts, prizes, products, and services unique to the Mississippi lottery.
(d) "Net proceeds" means gross lottery revenues minus amounts paid as prizes and expenses of operation of the lottery.
(e) "Person" means any individual, corporation, partnership, unincorporated association or other legal entity.
(f) "President" means the President of the Mississippi Lottery Corporation, who shall also serve as chief executive officer of the corporation.
(g) "Retailer" means any person with whom the corporation has contracted to sell lottery tickets to the public.
(h) "Security" means the protection of information that would provide an unfair advantage to any individual involved in the operation of the lottery, protection and preservation of the integrity of lottery games and operations, as well as measures taken to prevent crimes against the corporation and its retailers.
(i) "Vendor" means any person who has entered into a contract with the corporation.
(j) "Fiscal year" means the fiscal year used by the State of Mississippi government.
(k) "Board" means the Mississippi Lottery Corporation Board of Directors.
(l) "Instant ticket" means a lottery game in which a player scratches a coating from one or more play areas on a ticket to determine if he or she has won, as indicated by the symbols and words that are revealed.
(m) "Video lottery" and "video lottery terminal" means any electronic interactive computerized game machine or device equipped with a video screen and buttons, keys, a keyboard, touchscreen or other input device allowing input by an individual player and into which the player inserts coins, tokens, currency or other representation of value (including, but not limited to, an electronic card, ticket or other thing on which value is recorded electronically) as consideration in order for play of a game to be available, and through which, as a result of the play of a game, the player may receive free games, credits redeemable for cash or a noncash prize, or some other thing of value, whether or not received directly from the device, or nothing, determined wholly or predominantly by chance.
(n) "Mississippi Veterans' Assistance Lottery" means any game of chance operated by the corporation under the provisions of Section 27-115-8, Mississippi Code of 1972, which utilizes the sale of paper tickets for various intrastate or multistate lottery games (such as Pick-3, Pick-4, Mega Millions, Powerball), and "instant tickets" as defined, but specifically excluding any form of "video lottery" or use of "video lottery terminal" as defined, for the benefit of the Fund for Veterans Assistance established under Section 27-115-51.
SECTION 3. Section 27-115-17, Mississippi Code of 1972, is amended as follows:
27-115-17. (1) The board shall not authorize, conduct or administer lottery games involving the use of a "video lottery terminal" as defined or any mobile or internet-based or monitor-based interactive game, or any simulated casino-style game, including video poker, video roulette, slot machines or video blackjack, or any variant of these prohibited games.
(2) The board may adopt administrative rules and regulations for the conduct of specific lottery games and operations, including, but not limited to, administrative rules and regulations specifying:
(a) The types of lottery games to be conducted which utilize the sale of paper tickets for various intrastate and multistate or multisovereign lottery games (such as Pick-3, Pick-4, Mega Millions, Powerball) and "instant tickets" as defined.
(b) The sale price of tickets.
(c) The number and amount of prizes.
(d) The methods to be used in selling tickets for lottery games; provided, however, the corporation shall not permit any lottery game to be played or ticket to be purchased, sold or played by any method involving (i) a video lottery terminal or (ii) by any personal computer, tablet, smartphone, mobile device or other similar equipment or type of device.
(e) The methods and location of selecting or validating winning tickets.
(f) The frequency and the means of conducting drawings which shall be open to the public.
(g) The manner of payment of prizes.
(h) The frequency of games and drawings.
(i) The manner and amount of compensation to lottery retailers, except all compensation shall be uniform.
(j) Any other matters necessary to carry out this chapter and necessary for the efficient and effective operation of the lottery or for the convenience of the public.
(k) Rules and regulations for the conduct of the Mississippi Veterans' Lottery created in Section 27-115-8.
(3) In all other matters, the board shall advise and make recommendations. In addition, the board shall:
(a) Conduct hearings upon complaints charging violations of this chapter or of administrative rules and regulations adopted by the corporation and shall conduct such other hearings as may be provided by administrative rules and regulations.
(b) Periodically, review the performance of the corporation and:
(i) Advise the president and make recommendations to him or her regarding operations of the corporation; and
(ii) Identify potential improvements in this chapter, the administrative rules and 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.
(4) Nothing in this chapter shall be construed to govern, affect or limit gaming operations at a licensed gaming facility nor shall this chapter be construed to supersede or preempt the authority of the Mississippi Gaming Commission as it relates to gaming operations occurring at a licensed gaming facility.
(5) Nothing in this chapter shall prohibit a licensed gaming facility under the Mississippi Gaming Commission from applying and operating as a lottery retailer under this chapter.
SECTION 4. Section 27-115-21, Mississippi Code of 1972, is amended as follows:
27-115-21. (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 chapter and within the administrative rules and regulations adopted by the board. The president shall:
(a) Supervise and administer the operation of the corporation, the lottery and its games.
(b) Employ and direct such personnel as may be necessary to carry out the purposes of this chapter and utilize such services, personnel or facilities of the corporation as he or she may deem necessary.
(c) Contract in accordance with the administrative rules and regulations adopted by the corporation with lottery retailers, and contract in accordance with the administrative rules and regulations adopted by the corporation relative to the Mississippi Veterans' Lottery with lottery retailers in accordance with Section 27-115-8.
(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 or her office and to advise the board and recommend such administrative rules and regulations and other matters he or she deems necessary and advisable to improve the operation and administration of the lottery.
(e) Subject to the limitations under Section 27-115-69, enter into any contract pursuant to this chapter with any person for the promotion and operation of the lottery or for the performance of any of the functions as provided in this chapter or administrative rules and regulations adopted by the board.
(f) Attend meetings of the board or appoint a designee to attend on his or her behalf.
(g) Not later than thirty (30) days before the beginning of the corporation's fiscal year, submit the proposed annual budget of the corporation and projected net proceeds to the board for review and approval. In addition, the proposed annual budget of the corporation shall include a personnel table reporting information for each full-time and part-time permanent position, as follows:
(i) The position title and the salary for each position in the existing operating budget for the current fiscal year, indicating whether each position is filled or vacant as of the reporting date.
(ii) The position title and the salary recommended for each position for the next fiscal year.
(2) The president, with the approval of the board, may amend or modify the budget at any time in any manner deemed necessary for the proper operation of the corporation.
(3) Following his or her approval by the Governor and during his or her entire employment by the board, the president shall reside in Mississippi.
(4) The president and the
board shall conduct an ongoing examination of the operation and administration
of lotteries in other states and/or countries, including reviewing 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 chapter. The president may also
establish one or more market or equipment research centers for lottery products
and may establish lottery player information centers.
(5) The president shall require bond from corporate employees with access to corporate funds or lottery funds in such an amount as provided in the administrative rules and regulations of the board.
(6) The president may:
(a) Require bond from other employees as he or she deems necessary.
(b) For good cause, suspend, revoke or refuse to renew any contract entered into in accordance with this chapter or the administrative rules and regulations of the board.
(c) Upon specific or general approval of the board, conduct hearings and administer oaths to persons for the purpose of assuring the security or integrity of lottery operations, or to determine the qualifications or compliance by vendors and retailers.
(d) Upon specific or general approval of the board, enter into personal service contracts pursuant to administrative rules and regulations adopted by the board and compensate such consultants and technical assistants as may be required to carry out the provisions of this chapter.
(e) By agreement, secure information and services as he or she may deem necessary from any department, agency or unit of the federal, state or local government, and to the extent allowed by federal or state law, may compensate such department, agency or unit of government for its information and services.
(7) Agencies, departments or units of state government shall cooperate with the corporation to assure the integrity of the lottery and the effective operation of the lottery games.
SECTION 5. Section 27-115-51, Mississippi Code of 1972, is amended as follows:
27-115-51. (1) (a) All monies received by the corporation from the sale of lottery tickets and all other sources shall be deposited into a corporate operating account. Such account shall be established in a custodian financial institution domiciled in the State of Mississippi and insured by the Federal Deposit Insurance Corporation and collateralized as prescribed by Section 27-105-5. The corporation may use all monies 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 estimate and allocate the amount to be paid by the corporation to prizewinners.
(b) (i) The investment of monies in the corporate operating account, other than the amount specifically required for the purchase of securities for payment of deferred prizes, shall be invested in a manner prescribed by the board, consistent with law. Such securities purchased as investments by the corporation shall be issued in the name of the corporation and shall be kept at a custodian financial institution domiciled in the State of Mississippi insured by the Federal Deposit Insurance Corporation.
(ii) The investment of monies in the corporate operating account, other than the amount specifically required for the purchase of securities for deferred prize payments to winners, shall be invested only in securities in a manner prescribed by the board, consistent with law. Such securities purchased as investments by the corporation shall be issued in the name of the corporation and shall be safe kept at a custodian financial institution domiciled in the State of Mississippi insured by the Federal Deposit Insurance Corporation.
(iii) These instruments may be in varying maturities and may be in book-entry form.
(iv) For the purpose of deferred prize payments to winners, the corporation shall purchase or invest in only those securities prescribed by the board, consistent with law.
(c) Within twenty (20) days following the close of each calendar month, the corporation shall transfer to the Lottery Proceeds Fund in the State Treasury the amount of net proceeds.
(d) The apportionment of the total gross revenues accruing from the sale of lottery tickets or shares and from all other sources shall be as follows:
(i) The payment of prizes to the holders of winning lottery tickets or shares which in any case shall be no less than fifty percent (50%) of the total gross revenues accruing from the sale of lottery tickets.
(ii) The payment of 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, which in no case shall exceed fifteen percent (15%) of the total gross revenues accruing from the sale of lottery tickets. However, this restriction shall not apply until after the first twelve (12) months of revenue generation.
(2) A Lottery Proceeds Fund is hereby established in the State Treasury. Net proceeds shall be deposited into this fund as provided in subsection (1) of this section. Monies deposited into the Lottery Proceeds Fund shall be invested by the state in accordance with state investment practices, and all earnings from such investments shall accrue to this account. No monies shall be allotted or expended from this account unless pursuant to a warrant issued as provided under Section 27-115-85.
(3) Money transferred to the Fund for Veterans' Assistance created herein from proceeds of the Veterans' Assistance Lottery Game created in Section 27-115-8 shall be used for the payment of prizes under the Veterans' Assistance Lottery and the payment of the costs incurred in the operation and administration of the lottery, and the balance after creation of a reserve sufficient to pay the amounts needed or estimated to be needed under the lottery shall be transferred on or before the fifteenth day of each month to the Veterans' Assistance Fund created herein. The Fund for Veterans' Assistance is a special fund hereby created in the State Treasury, composed of money transferred to the fund from the proceeds of the lottery game operated by the Mississippi Lottery Corporation under the Veterans' Assistance Lottery Game provided for in Section 27-115-8, Mississippi Code of 1972.
SECTION 6. This act shall take effect and be in force from and after July 1, 2024.