Senate bill NO. 168
INTRODUCED
BY G. Hertz, R. Lynch, M. Noland
By Request of the ****
A BILL FOR AN ACT ENTITLED: "AN ACT Revising state lottery laws relating to sales agent commissions; Allowing sales agents to receive an additional commission for the sale of certain winning lottery tickets; and AMENDING SECTIONS 23-7-301 AND 23-7-311, MCA."
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MONTANA:
Section 1. Section 23-7-301, MCA, is amended to read:
"23-7-301. Sales agents -- licenses. (1) Lottery tickets, chances, wagers, or bets may be sold only by a sales agent licensed by the director in accordance with this section.
(2) The commission shall by rule determine the places at which state lottery games and sports wagering tickets, chances, wagers, or bets may be sold.
(3) (a) Before issuing a license, the director shall consider:
(i) the financial responsibility and security of the applicant and the applicant's business or activity;
(ii) the accessibility of the applicant's place of business or activity to the public; and
(iii) the sufficiency of existing licenses to serve the public convenience and the volume of the expected sales.
(b) A person under 18 years of age may not sell lottery tickets, chances, wagers, or bets.
(c) A license as an agent to sell lottery tickets, chances, or wagers and bets may not be issued to any person to engage in business exclusively as a lottery ticket, chance, or sports wagering sales agent.
(d) A license as an agent to sell wagers or bets may not be issued to any professional or collegiate sports:
(i) athlete;
(ii) coach;
(iii) assistant coach;
(iv) team staff;
(v) team owner;
(vi) referee; or
(vii) employee.
(4) The director may issue temporary licenses upon on conditions that the director considers necessary.
(5) (a) Two license types are available:
(i) lottery only; and
(ii) sports wagering only.
(b) License applicants shall complete the application process pursuant to this chapter and corresponding administrative rules.
(6) The director may require a bond from any licensed agent in an amount provided in the commission's rules and may purchase a blanket bond covering the activities of licensed agents.
(7) A licensed agent shall display the license or a copy of the license conspicuously in accordance with the commission's rules.
(8) A license is not assignable or transferable.
(9) An employee of a sales agent may not be required to sell lottery game tickets, chances, or wagers or bets if the sale is against the employee's religious or moral beliefs.
(10) (a) Sales agents are entitled to a commission of:
(i) no more than 10% of the face value of tickets and chances that they purchase from the lottery and do not return and no more than 10% of the face value of a wager or bet; and
(ii) a sales commission as provided in 23-7-311.
(b) However, to further the sale of lottery products and sports wagering, the state lottery and sports wagering commission may adopt rules providing additional commissions to sales agents based on incremental sales. Commissions may not come from that part of all gross revenue that is net revenue and is paid to the general fund. The commissions are statutorily appropriated, as provided in 17-7-502, to the lottery.
(11) Each sales agent shall keep a complete and up-to-date set of records and accounts fully showing the agent's sales and provide it for inspection upon on request of the commission, the director, the department of administration, the office of the legislative auditor, or the office of the attorney general.
(12) Sales agents may pay the state lottery only by check, bankdraft, electronic funds transfer, or other recorded, noncash, financial transfer method as determined by the director.
(13) A license may be suspended or revoked for failure to maintain the license qualifications provided in subsection (3) or for violation of any provision of this chapter or a commission rule. Prior to suspension or revocation, the licensee must be given notice and an opportunity for a hearing."
Section 2. Section 23-7-311, MCA, is amended to read:
"23-7-311. Drawings for and payment of prizes -- unclaimed prizes. (1) All drawings must be held in public. The selection of winning tickets, chances, wagers, or bets may not be performed by an employee of the state lottery or by a member of the commission. All drawings may be witnessed by a professional staff employee of the legislative auditor's office, and all state lottery drawing equipment used in public drawings to select winning prizes or participants for prizes must be examined by the director's staff prior to and after each public drawing.
(2) (a) The commission shall provide a sales commission that is 1% of the prize, for a maximum of $50,000, to sales agents selling a winning lottery ticket with a value of $100,000 or greater.
(b) The commission may by rule provide for the payment of prizes by sales agents, whether or not the paying agent sold the winning ticket, chance, wager, or bet whenever the amount of the prize is less than an amount set by commission rule.
(3) (a) Except as provided in subsection (3)(b), lottery jackpot prizes over $100,000 may in the discretion of the commission be paid either in one lump sum or in equal yearly installments without interest over a period of not more than 20 years and in yearly installment payments of not less than $20,000.
(b) If the commission enters into an agreement under the provisions of 23-7-202(8) to participate in a lottery game for prizes of over $100,000 that requires payment periods of more than 20 years or yearly installment payments of less than $20,000 as a condition of participation, the commission may adopt the installment payment amounts and time periods necessary to comply with the conditions of the game.
(4) Prizes not claimed within 6 months are forfeited and must be paid into the state lottery fund. No interest is due on a prize when a claim is delayed but made within 6 months.
(5) The right to a prize is not assignable, but prizes may be paid to a deceased winner's estate or to a person designated by judicial order."