SENATE  .  .  .  .  .  .  .  .  .  .  .  .  .  .  No. 3049

 

 

The Commonwealth of Massachusetts

 

_______________

In the One Hundred and Ninety-Second General Court
(2021-2022)

_______________

 

by inserting after section ___ the following sections:- 

"SECTION ___. Chapter 10 of the General Laws is hereby amended by striking out section

24, as so appearing, and inserting in place thereof the following section:-

Section 24. (a) The commission is hereby authorized to conduct a state lottery and shall determine: (i) the types of lotteries to be conducted; (ii) the prices of tickets or shares in the lottery; (iii) the number and sizes of the prizes on the winning tickets or shares; (iv) the manner of selecting the winning tickets or shares; (v) the manner of payment of prizes to the holders of winning tickets or shares; (vi) the frequency of the drawings or selections of winning tickets or shares; (vii) the types of locations at which tickets or shares may be sold; (viii) the method to be used in selling tickets or shares; (ix) the licensing of agents to sell tickets or shares; provided, however, that no person under the age of 18 shall be licensed as an agent; (x) the manner and amount of compensation, if any, to be paid licensed sales agents; provided, however, that the amount of compensation, if any, to be paid to licensed sales agents as a commission pursuant to this section shall be calculated on the total face value of each ticket or share sold and not on any discounted price of any such ticket or share sold; provided further, that the commission shall authorize licensed sales agents to facilitate point of sale transactions using a debit card; and provided further, that said commission shall prohibit point of sale transactions using credit cards as defined in section 1 of chapter 140D and that point of sale transactions under this section shall be subject to the restrictions pursuant to subsection (b) of section 5I of chapter 18; and (xi) such other matters necessary or desirable for the efficient and economical operation and administration of the lottery and for the convenience of the purchasers of tickets or shares and the holders of winning tickets or shares. The commission is authorized to operate the daily numbers game 7 days a week. Each physical state lottery ticket or share shall have imprinted thereon the state seal and a serial number.

(b) The commission may establish, and from time to time revise, such rules and regulations as it deems necessary or desirable and shall file the same with the office of the state secretary; provided, however, that the commission shall establish rules and regulations for lotteries conducted online, over the internet, through the use of a mobile application or through any other means that shall, at a minimum: (i) require age verification measures to be reasonably designed to block access to and prevent sales of lottery tickets, games or shares online, over the internet, through the use of a mobile application or through any other means to persons under the age of 18;

(ii) limit sales of lottery tickets, games or shares online, over the internet, through the use of a mobile application or through any other means to transactions initiated and received, or otherwise made, within the commonwealth;

(iii) allow any player to voluntarily prohibit or otherwise exclude themself from purchasing a lottery ticket, game or share online, over the internet, through the use of a mobile application or through any other means;

(iv) establish maximum limits for account deposits and transactions of lottery tickets,

games or shares conducted online, over the internet, through the use of a mobile application or

through any other means and allow players to reduce their own deposit or transaction limit at any

time;

(v) clarify that any cash deposited in a lottery account belongs solely to the owner of the

account and may be withdrawn by the owner at any time;

(vi) require the commission to implement promotional activities to encourage the purchase of lottery tickets, games or shares through licensed sales agents including, but not limited to, the sale of gift certificates as defined in section 1 of chapter 255D for lottery sales through licensed sales agents.

(c) Notwithstanding any general or special law to the contrary, the name, address, transaction history, account balance or other personal or identifying information of an individual who purchases lottery tickets, games or shares online, over the internet, through the use of a mobile application or through any other means shall not be deemed public records of the commission for the purposes of section 10 of chapter 66; provided, however, that this section shall not prohibit the commission from maintaining, using or sharing such information in the course of an investigation by law enforcement or in compliance with sections 28A or 28B.

(d) The commission shall advise and make recommendations to the director regarding the operation and administration of the lottery. The commission shall report monthly to the governor, the attorney general and the general court, the total lottery revenues, prize disbursements and other expenses for the preceding month and shall make an annual independently audited financial report to the same which shall include a full and complete statement of lottery revenues, prize disbursements and other expenses, including such recommendations as it may deem necessary or advisable, which shall be made available electronically to the general public not later than the earliest date established for reports in section 12 of chapter 7A. The commission shall report immediately to the governor and the general court any matters which require immediate changes in the laws of the commonwealth in order to prevent abuses and evasions of the lottery law or rules and regulations promulgated thereunder or to rectify undesirable conditions in connection with the administration or operation of the state lottery.

(e) The commission is authorized to carry on a continuous study and investigation of the lottery throughout the commonwealth in order to: (i) ascertain any defects in the state lottery law or in the rules and regulations issued thereunder whereby any abuse in the administration and operation of the lottery or any evasion of said law or said rules and regulations may arise or be practiced; (ii) formulate recommendations for changes in said law and the rules and regulations promulgated thereunder to prevent such abuses and evasions; and (iii) guard against the use of said law and rules and regulations issued thereunder as a cloak for the carrying on of organized gambling and crime.

(f) The commission shall make a continuous study and investigation of: (i) the operation and administration of similar laws in other states or countries; (ii) any literature on the subject which from time to time may be published or available; (iii) any federal laws which may affect the operation of the lottery; and (iv) the reaction of citizens of the commonwealth to existing and potential features of the lottery with a view to recommending or effecting changes that will tend to better serve and implement the purposes of the state lottery law.

(g)(i) There is hereby established within the commission a lottery advisory board. The lottery advisory board shall be comprised, at minimum, of the following members: the director of the lottery commission, or their designee; a representative from the New England Convenience Stores and Energy Marketers Association, Inc.; a representative from the Retailers Association of Massachusetts, Inc.; a representative from the Massachusetts Restaurants Association, two representatives operating as licensed sales agents in a brick and mortar retail store and appointed by the director of the commission; two representatives appointed by the Massachusetts Municipal Association; a representative from the Massachusetts Council on Gaming and Health; a representative from the Massachusetts Department of Public Health’s Office of Problem Gambling Services; and any other representative the commission deems is necessary to advance the goals of the advisory board. All members of the lottery advisory board shall serve at the will of their appointing authority.

(ii) The lottery advisory board shall advise and assist the commission in the development and implementation of the lottery ecosystem comprised of traditional brick and mortar lotteries, lotteries conducted online, over the internet and through the use of mobile phone applications. The board shall review all processing fees associated with point of sale transactions using debit cards and make recommendation on said processing fees and the implementation of use of debit cards.

(iii) The lottery advisory board shall meet monthly during their first year of implementation and thereafter at the discretion of the board, except that the board shall meet at a minimum quarterly after its first year to advise and assist the commission in lottery modernization and to review actions taken by the commission with respect to online lottery development and implementation and to make advisory recommendations, as necessary. Annually, at the first meeting of the advisory board, members of the advisory board shall elect a chair. A majority of members of the advisory board shall be present for actions to be taken.

(h) The concurrence of the chairman and not less than 2 other members of the commission shall be required for all official actions of the commission. A copy of the minutes of each meeting of the commission, including any rules and regulations adopted by the commission or any amendments thereof, shall be forthwith transmitted, by and under the certification of the secretary thereof, to the governor.

(i) The commission shall have the power to issue subpoenas to compel the attendance of witnesses and the production of documents, papers, books, records and other evidence before it in any matter over which it has jurisdiction, control or supervision. The commission shall have the power to administer oaths and affirmations to persons whose testimony is required.

SECTION ___. Section 24A of said chapter 10, as so appearing, is hereby amended by striking out subsection (a) and inserting in place thereof the following subsection:-

(a) For the purposes of this section, “group agreement'” shall mean any lottery activity in which the commission participates pursuant to a written agreement between the commission, on behalf of the commonwealth, and any state, territory, country or other sovereignty. The commission is hereby authorized to enter into agreements with 1 or more states or other jurisdictions, hereinafter referred to as a group, for the purpose of creating and maintaining multi-jurisdictional lottery games, including multi-jurisdictional lottery games to be conducted online, over the internet, through the use of a mobile application or through any other means; provided, that any such lottery game to be conducted online, over the internet, through the use of a mobile application or through any other means has been properly authorized by each state or other jurisdiction that is part of the group; provided further, that a group agreement shall not include the state lottery games created pursuant to section 24; provided further, that nothing in this section and nothing in a group agreement shall authorize the commission to make expenditures that are not consistent with restrictions on expenditures by the commission provided for in any other general or special law. The group shall determine the types of lotteries to be conducted, the prices of tickets or shares, the manner of selecting the winning tickets or shares, the manner of payment of prizes to the holders of winning tickets or shares and the frequency of the drawings or selection of winning tickets or shares. The commission may establish, and from time to time revise, such rules and regulations as it deems necessary or desirable to carry out the group agreement

and shall file the same with the office of the state secretary.

SECTION ___. Said chapter 10, as so appearing, is hereby amended by striking out section 25 and inserting in place thereof the following section:-

Section 25. (a) The apportionment of the total revenues accruing from the sale of lottery tickets or shares and from all other sources at the point of sale at a licensed agent shall be as follows: (i) the payment of prizes to the holders of winning tickets or shares which in any case shall be no less than 45 per cent of the total 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 commission 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, that in no case shall exceed 15 per cent of the total revenues accruing from the sale of lottery tickets, subject to appropriation; and (iii) the balance shall be used to fund budgeted aid to cities and towns as provided in section 18C of chapter 58, subject to appropriation.

(b) The apportionment of the total revenues accruing from the sale of lotteries conducted online, over the internet, through the use of a mobile application or through any other means as authorized by section 24 except for those enumerated in clause (a) of this section shall be as follows: (i) the payment of prizes to the holders of winning tickets or shares; (ii) the payment of costs incurred in the operation and administration of such lotteries, including the expenses of the commission 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, that in no case shall exceed 15 per cent of the total revenues accruing from the sale of lottery tickets, subject to appropriation."