Division subject to termination - annual financial audits of the division.

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(1) (a) Unless continued or reestablished by the general assembly acting by bill, the division shall terminate on July 1, 2049.

(b) (I) The state auditor shall conduct annual financial audits of the division.

(II) At least once every five years, and more frequently in the state auditor's discretion, the state auditor shall conduct an analysis and evaluation of the performance of the division and shall submit a written report, together with any supporting materials as may be requested, to the general assembly. The first report shall be completed by January 1, 2004.

(c) In conducting the analysis and evaluation required by subsection (1)(b)(II) of this section, the state auditor shall take into consideration, but not be limited to considering, the following factors:

  1. The amount of revenue generated by the lottery for its beneficiaries as specified inarticle XXVII of the state constitution;

  2. The administrative and other expense of lottery dollar collections as compared torevenue derived;

  3. An evaluation of the contracts, and compliance with the contracts, of lottery equipment contractors and licensed sales agents;

  4. Whether there has been an increase in organized crime related to gambling withinthe state;

  5. A report on the results of the analysis prepared by the division on the socioeconomicprofile of persons who play the lottery, including information comparing the results of past analyses to assess the movement of persons from various categories;

  6. Whether the commission encourages public participation in its decisions rather thanparticipation only by the people whom it regulates;

  7. An evaluation of the effectiveness and efficiency of the division's complaint, investigation, and disciplinary procedures;

  8. Whether the division performs its statutory duties efficiently and effectively;

  9. Whether administrative or statutory changes are necessary to improve the operationof the lottery in the best interests of the state's citizens;

  10. Any other matters of concern about the operation and functioning of the lottery; and

  11. A report on any gifts and gratuities received by members of the commission andemployees of the division.

(2) Prior to any revision of the division's functions, a committee of reference in each house of the general assembly shall hold a public hearing thereon to consider the report provided by the state auditor, as required by subsection (1)(b)(II) of this section. The hearing shall include the factors set forth in subsection (1)(c) of this section.

Source: L. 2018: (1)(a) amended, (SB 18-066), ch. 172, p. 1203, § 1, effective August 8; entire article added with relocations, (HB 18-1027), ch. 31, p. 358, § 2, effective October 1.

Editor's note: (1) This section is similar to former § 24-35-218 as it existed prior to 2018.

(2) Subsection (1)(a) of this section was numbered as § 24-35-218 (1)(a) in SB 18-066. That provision was harmonized with and relocated to this section as this section appears in HB 18-1027.


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