Reprinted
February 26, 2007
SENATE BILL No. 577
_____
DIGEST OF SB 577
(Updated February 26, 2007 7:08 pm - DI 73)
Citations Affected: IC 4-30; IC 5-10.3; IC 5-28; IC 6-3; IC 21-48;
noncode.
(Continued next page)
Merritt
, Kenley
January 23, 2007, read first time and referred to Committee on Tax and Fiscal Policy.
February 22, 2007, amended, reported favorably _ Do Pass.
February 26, 2007, read second time, amended, ordered engrossed.
Digest Continued
(Continued next page)
Digest Continued
life sciences fund unless the grant has received a positive
recommendation from a peer review panel. Provides that a grant from
the Indiana life sciences fund may not be used to conduct embryonic
stem cell research. Establishes the Hoosier hope scholars program to
provide scholarships for students who intend to pursue a course of
study at an eligible institution of higher learning that will lead to a
baccalaureate or associate degree and who intend to reside in Indiana
and maintain qualified employment for specified periods. Establishes
the critical employment needs program to provide nursing faculty
scholarships, math and science teacher scholarships, and additional
employment needs scholarships for certain students who intend to
reside in Indiana and maintain qualified employment for specified
periods.
Reprinted
February 26, 2007
First Regular Session 115th General Assembly (2007)
PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
Constitution) is being amended, the text of the existing provision will appear in this style type,
additions will appear in
this style type, and deletions will appear in
this style type.
Additions: Whenever a new statutory provision is being enacted (or a new constitutional
provision adopted), the text of the new provision will appear in
this style type. Also, the
word
NEW will appear in that style type in the introductory clause of each SECTION that adds
a new provision to the Indiana Code or the Indiana Constitution.
Conflict reconciliation: Text in a statute in
this style type or
this style type reconciles conflicts
between statutes enacted by the 2006 Regular Session of the General Assembly.
SENATE BILL No. 577
A BILL FOR AN ACT to amend the Indiana Code concerning state
offices and administration and to make an appropriation.
Be it enacted by the General Assembly of the State of Indiana:
SOURCE: IC 4-30-1-1; (07)SB0577.2.1. -->
SECTION 1. IC 4-30-1-1 IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE UPON PASSAGE]: Sec. 1. The purpose of this article is
to establish lottery games in Indiana that are the best available and that
enable the people of Indiana to benefit from significant additional
money:
(1) to encourage outstanding Indiana students to pursue
higher education opportunities within Indiana and to enter
Indiana's workforce after graduation;
(2) to accelerate Indiana's growth by providing grants to state
educational institutions to support the recruitment and
retention of world class scientists; and
(3) for capital improvements.
SOURCE: IC 4-30-1-2; (07)SB0577.2.2. -->
SECTION 2. IC 4-30-1-2 IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE UPON PASSAGE]: Sec. 2. In construing this article, it
is the intent of the general assembly that the following policies be
carried out:
(1) That the lottery games be operated
by as provided in this
article.
(2) That the state lottery commission which is created by
IC 4-30-3 as a separate body politic and corporate from state
government and should function as much as possible as an
entrepreneurial business enterprise.
(2) (3) That the general assembly recognizes that the operation of
a lottery is a unique activity for state government and that policies
and procedures appropriate for the performance of other
governmental functions are not necessarily appropriate for the
operation of a lottery.
(3) (4) That the lottery games be operated as a self-supporting
revenue raising operation.
(4) (5) That the commission be accountable to the general
assembly and the people of Indiana through a system of audits and
reports and by complying with financial disclosure, open
meetings, and public record laws.
(5) (6) That the commission ensure the equitable participation of
minorities and women in all phases of the lottery, including
instant game and online retailers and vendors. The commission
shall establish annual goals:
(A)
for the use of minority and women's business enterprises
(as defined in IC 4-13-16.5-1 and IC 4-13-16.5-1.3) in
construction, professional services, other services, and
supplies; and
(B)
derived from a statistical analysis of utilization study of
lottery contracts that are required to be updated every five (5)
years.
The commission shall, in cooperation with the Indiana department
of administration, adopt rules under IC 4-22-2 to ensure that the
goals set under this subdivision are met. A rule adopted under
this subdivision continues to apply if a management
agreement is in effect.
(6) (7) That lottery game advertising and promotion shall be
consistent with the dignity and integrity of the state.
SOURCE: IC 4-30-2-2; (07)SB0577.2.3. -->
SECTION 3. IC 4-30-2-2 IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE UPON PASSAGE]: Sec. 2. "Commission" refers to:
(1) the state lottery commission; or
(2) a successor agency, unless the context clearly denotes
otherwise.
SOURCE: IC 4-30-2-3; (07)SB0577.2.4. -->
SECTION 4. IC 4-30-2-3 IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE UPON PASSAGE]: Sec. 3. "Director" refers to the
director of the commission
or the executive director of a successor
agency.
SOURCE: IC 4-30-2-3.2; (07)SB0577.2.5. -->
SECTION 5. IC 4-30-2-3.2 IS ADDED TO THE INDIANA CODE
AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE
UPON PASSAGE]: Sec. 3.2. "Gaming commission" means the
Indiana gaming commission established under IC 4-33-3.
SOURCE: IC 4-30-2-5.3; (07)SB0577.2.6. -->
SECTION 6. IC 4-30-2-5.3 IS ADDED TO THE INDIANA CODE
AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE
UPON PASSAGE]: Sec. 5.3. "Management agreement" means an
agreement under which a manager will manage the lottery on
behalf of the commission.
SOURCE: IC 4-30-2-5.5; (07)SB0577.2.7. -->
SECTION 7. IC 4-30-2-5.5 IS ADDED TO THE INDIANA CODE
AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE
UPON PASSAGE]: Sec. 5.5. "Manager" means an entity formed
under IC 4-30-20 that has entered into a management agreement.
SOURCE: IC 4-30-2-7; (07)SB0577.2.8. -->
SECTION 8. IC 4-30-2-7 IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE UPON PASSAGE]: Sec. 7. "Retailer" means a person
who sells lottery tickets on behalf of the commission under a contract
with the commission or a manager.
SOURCE: IC 4-30-2-8; (07)SB0577.2.9. -->
SECTION 9. IC 4-30-2-8 IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE UPON PASSAGE]: Sec. 8. "Vendor" means a person
who provides or proposes to provide goods or services to the
commission or a manager. The term does not include an employee of
the commission, a manager, a retailer, or a state agency.
SOURCE: IC 4-30-2-9; (07)SB0577.2.10. -->
SECTION 10. IC 4-30-2-9 IS ADDED TO THE INDIANA CODE
AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE
UPON PASSAGE]: Sec. 9. "Video lottery game" means an
electronically simulated game of chance that is displayed on the
screen or video monitor of a video lottery terminal.
SOURCE: IC 4-30-3-1; (07)SB0577.2.11. -->
SECTION 11. IC 4-30-3-1 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 1. There is created
a state lottery commission as a body politic and corporate separate from
the state. The commission is composed of five (5) members selected as
provided in IC 4-30-4. The commission has the powers and duties set
forth in this article, including the authority to sue and be sued in the
name of the commission and to adopt a commission seal and symbol.
The commission shall supervise and administer the operation of the
Indiana state lottery in accordance with this article.
SOURCE: IC 4-30-3-4; (07)SB0577.2.12. -->
SECTION 12. IC 4-30-3-4 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 4. The commission
shall maintain,
or require a manager to maintain, weekly or more
frequent records of lottery transactions, including the distribution of
tickets to retailers, revenue received, claims for prizes, prizes paid, and
other financial transactions of the commission. lottery.
SOURCE: IC 4-30-3-6; (07)SB0577.2.13. -->
SECTION 13. IC 4-30-3-6 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 6. The commission
shall conduct, or require a manager to conduct, market research as
necessary or appropriate, which may include an analysis of the
demographic characteristics of the players of each lottery game and an
analysis of advertising, promotion, public relations, incentives, and
other aspects of communications.
SOURCE: IC 4-30-3-7.5; (07)SB0577.2.14. -->
SECTION 14. IC 4-30-3-7.5 IS ADDED TO THE INDIANA CODE
AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE
UPON PASSAGE]: Sec. 7.5. (a) Except as expressly provided in this
article:
(1) a rule adopted by the state lottery commission before the
effective date of the first management agreement; and
(2) a provision in this article that requires the commission to
adopt rules;
do not apply if a management agreement is in effect.
(b) Notwithstanding subsection (a), 65 IAC 1-2 regarding access
to public records remains in effect after the effective date of a
management agreement until superceded or repealed by a rule
adopted by the gaming commission.
SOURCE: IC 4-30-3-8; (07)SB0577.2.15. -->
SECTION 15. IC 4-30-3-8 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 8. (a) The
commission may:
(1) promote and advertise the lottery; or
(2) authorize a manager to promote and advertise the lottery.
(b) A promotion may refer to the total lottery prize, even though the
prize may be paid over a period of years.
(c) The commission may:
(1) act as a retailer and conduct promotions involving the
dispensing of free lottery tickets; or
(2) authorize a manager to act as a retailer and conduct
promotions involving the dispensing of free tickets.
(d) The director may:
(1) authorize a sales incentive program for employees of the
commission for the purpose of increasing the sales volume and
distribution of lottery tickets; or
(2) authorize a manager to develop a sales incentive program
for:
(A) retailers;
(B) employees of the manager; or
(C) both retailers and employees of the manager;
for the purpose of increasing the sales volume and
distribution of lottery tickets.
SOURCE: IC 4-30-3-15; (07)SB0577.2.16. -->
SECTION 16. IC 4-30-3-15 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 15. The
commission may:
(1) charge fees; or
(2) authorize a manager to charge fees;
to persons applying for a contract as a vendor or retailer. The fees must
be reasonably calculated to cover the costs of investigations and other
activities related to the processing of the application.
SOURCE: IC 4-30-3-17; (07)SB0577.2.17. -->
SECTION 17. IC 4-30-3-17 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 17. The
commission may:
(1) enter into contracts; or
(2) authorize a manager to enter into contracts;
with retailers under this article to provide adequate and convenient
availability of tickets to the public for each game.
SOURCE: IC 4-30-3-20; (07)SB0577.2.18. -->
SECTION 18. IC 4-30-3-20 IS ADDED TO THE INDIANA CODE
AS A
NEW SECTION TO READ AS FOLLOWS [EFFECTIVE
UPON PASSAGE]:
Sec. 20. (a) This section applies only to
contributions made after May 31, 2007.
(b) The definitions set forth in IC 3-5-2 apply to this section.
(c) As used in this section, "candidate" refers only to the
following:
(1) A candidate for a state office.
(2) A candidate for a legislative office.
(3) A candidate for a local office.
(d) As used in this section, "committee" refers to any of the
following:
(1) A candidate's committee.
(2) A regular party committee.
(3) A committee organized by a legislative caucus of the house
of the general assembly.
(4) A committee organized by a legislative caucus of the senate
of the general assembly.
(e) As used in this section, "officer" refers only to either of the
following:
(1) An individual listed as an officer of a corporation in the
corporation's most recent annual report.
(2) An individual who is a successor to an individual described
in subdivision (1).
(f) For purposes of this section, a person is considered to have
an interest in a manager if the person satisfies any of the following:
(1) The person holds at least a one percent (1%) interest in the
manager.
(2) The person is an officer of the manager.
(3) The person is an officer of a person that holds at least a
one percent (1%) interest in the manager.
(4) The person is a political action committee of the manager.
(g) A manager is considered to have made a contribution under
this section if a contribution is made by a person who has an
interest in the manager.
(h) A manager or person who has an interest in a manager may
not make a contribution to a candidate or a committee during the
following periods:
(1) The term during which a manager is a party to a
management agreement entered into under this article.
(2) The three (3) years following the final expiration or
termination of the management agreement described in
subdivision (1).
(i) A person who knowingly or intentionally violates this section
commits a Class D felony.
SOURCE: IC 4-30-3-21; (07)SB0577.2.19. -->
SECTION 19. IC 4-30-3-21 IS ADDED TO THE INDIANA CODE
AS A
NEW SECTION TO READ AS FOLLOWS [EFFECTIVE
UPON PASSAGE]:
Sec. 21. (a) On the effective date of the first
management agreement entered into under this article, the
following apply:
(1) All powers, duties, and liabilities of the state lottery
commission are transferred to the gaming commission as the
successor agency, except as otherwise provided in this article.
(2) All records and property of the state lottery commission,
including appropriations and other funds under its control or
supervision, are transferred to the gaming commission as the
successor agency, except as otherwise provided in this article.
(3) An amount owed to the state lottery commission before the
effective date of the management agreement must be paid to
and collected by the gaming commission as the successor
agency, except as otherwise provided in the first management
agreement.
(4) A reference to the state lottery commission in a statute,
rule, or other document is considered a reference to the
gaming commission as the successor agency, unless the
context clearly denotes otherwise.
(b) As the successor agency, the gaming commission may
employ investigators and other staff necessary to carry out this
article. The employees hired by the gaming commission under this
article may be the same as the gaming commission's employees
hired under IC 4-33.
(c) The gaming commission may exercise any of its powers
under this article or IC 4-33 as necessary or desirable for the
performance of the gaming commission's duties and the execution
of the gaming commission's powers under this article.
SOURCE: IC 4-30-4-6; (07)SB0577.2.20. -->
SECTION 20. IC 4-30-4-6 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 6. (a) Except as
provided in subsection (b), the state lottery commission shall oversee
the operation of the lottery and serve as a resource group for the
director, providing the director with private sector perspectives on the
operation of a large marketing enterprise.
(b) If a management agreement is in effect, the gaming
commission shall oversee the operation of the lottery, and the state
lottery commission shall serve as a resource group for the
executive director, providing the executive director of the gaming
commission with expertise in lottery operations and private sector
perspectives on the operation of a large marketing enterprise.
SOURCE: IC 4-30-4-7; (07)SB0577.2.21. -->
SECTION 21. IC 4-30-4-7 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 7. The state lottery
commission, or a member of the state lottery commission may advise
the director and make recommendations regarding operations of the
lottery and identify potential improvements in this article and in the
management of the lottery.
SOURCE: IC 4-30-6-4; (07)SB0577.2.22. -->
SECTION 22. IC 4-30-6-4 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 4. The division of
security commission shall conduct investigations of vendors, retailers,
and employees of the commission, or a manager, including applicants
for contracts or employment, necessary to ensure the security and
integrity of the operation of the lottery. The commission may require
persons subject to an investigation to provide any information,
including fingerprints, that is needed by the state police department to
carry out the investigation or that is otherwise necessary to facilitate
access to state and criminal history information.
SOURCE: IC 4-30-6-5; (07)SB0577.2.23. -->
SECTION 23. IC 4-30-6-5 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 5. (a) The state
police department shall provide:
(1) assistance in obtaining criminal history information relevant
to investigations required for honest, secure, exemplary lottery
operations; and
(2) any other assistance that may be requested by the director
commission and agreed to by the superintendent of the state
police department.
(b) Any other state agency, including the department of state
revenue and the professional licensing agency, shall upon request
provide the lottery commission with information relevant to an
investigation conducted under this article. The commission shall
reimburse an agency for the actual cost of providing assistance under
this section.
SOURCE: IC 4-30-6-6; (07)SB0577.2.24. -->
SECTION 24. IC 4-30-6-6 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 6. The division of
security shall supervise ticket validation and lottery drawings if a
management agreement is not in effect.
SOURCE: IC 4-30-6-7; (07)SB0577.2.25. -->
SECTION 25. IC 4-30-6-7 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 7. (a) This section
does not apply if the commission enters into a management
agreement.
(a) (b) After the first full year of ticket sales to the public or sooner
if the director considers necessary, the commission shall engage an
independent firm experienced in security procedures, including
computer security and systems security, to conduct a comprehensive
study and evaluation of all aspects of security in the operation of the
division of security.
(b) (c) The part of the security report containing the overall
evaluation of the commission shall be presented to the commission and
the governor. Any part of the security report containing information
protected from disclosure by IC 5-14-3 shall not be disclosed by the
commission or by the governor.
(c) (d) After the initial security study, similar studies of security
shall be conducted as the commission determines to be appropriate but
at least once every two (2) years.
SOURCE: IC 4-30-6-8; (07)SB0577.2.26. -->
SECTION 26. IC 4-30-6-8 IS ADDED TO THE INDIANA CODE
AS A
NEW SECTION TO READ AS FOLLOWS [EFFECTIVE
UPON PASSAGE]:
Sec. 8. (a) If the commission enters into a
management agreement, the manager shall implement a security
program as provided in the management agreement.
(b) After the first anniversary of the effective date of a
management agreement, or sooner if the director considers
necessary, the commission shall engage an independent firm
experienced in security procedures, including computer security
and systems security, to conduct a comprehensive study and
evaluation of all aspects of security in the manager's lottery
operations.
(c) The part of the security report containing the overall
evaluation of the manager shall be presented to the commission
and the governor. Any part of the security report containing
information protected from disclosure by IC 5-14-3 shall not be
disclosed by the commission or by the governor.
(d) After the security study described in subsection (b), similar
studies of security shall be conducted as the commission determines
to be appropriate but at least once every two (2) years.
SOURCE: IC 4-30-7-3; (07)SB0577.2.27. -->
SECTION 27. IC 4-30-7-3 IS ADDED TO THE INDIANA CODE
AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE
UPON PASSAGE]: Sec. 3. (a) This section applies to retailer
contracts after the effective date of a management agreement.
(b) If:
(1) an application of an applicant to become a retailer for any
type of lottery game is denied;
(2) an application to renew a retailer contract is denied;
(3) an application to change ownership or location is denied;
or
(4) the certificate of authority of a retailer is revoked;
by the manager, the retailer or applicant may appeal the decision
under rules established by the commission. A decision by the
commission or a manager with respect to a retailer contract is not
subject to IC 4-21.5.
(c) This section does not prohibit a retailer from continuing to
perform under a retailer contract while an appeal is pending. The
manager may not delay payment to a retailer of undisputed
amounts as a result of the filing of an appeal under rules
established by the commission. However, this right to continue to
operate does not apply to a retailer if the commission declares in
a decision that an emergency exists that requires the immediate
termination of the contract and certificate.
SOURCE: IC 4-30-8-1; (07)SB0577.2.28. -->
SECTION 28. IC 4-30-8-1 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 1. (a) The
commission may enter into contracts for the purchase, lease, or
lease-purchase of goods or services necessary to carry out this article.
The commission may not contract with any person or entity for the total
operation and administration of the lottery established by this article,
but may enter into contracts and make purchases that integrate
functions such as lottery game design, supply of goods and services,
and advertisement.
(b) The commission may authorize a manager to:
(1) enter into contracts for the purchase, lease, or
lease-purchase of goods or services necessary to carry out this
article; and
(2) enter into contracts and make purchases that integrate
functions, such as lottery game design, supply of goods and
services, and advertisement.
Contracts and purchases under this subsection are not subject to
IC 5-22.
(b) (c) In all procurement decisions, the director, or the commission,
if the commission chooses to make the decision, or a manager, if
authorized by the commission, shall take into account the particularly
sensitive nature of the lottery and shall consider the competence,
quality of product, experience, and timely performance of the vendors
in order to promote and ensure security, honesty, fairness, and integrity
in the operation and administration of the lottery and the objective of
raising net revenues for the benefit of the public purposes described in
this article.
SOURCE: IC 4-30-8-2; (07)SB0577.2.29. -->
SECTION 29. IC 4-30-8-2 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 2. The
division of
security commission shall investigate the financial responsibility,
security, and integrity of a person who submits a bid, proposal, or offer
as part of a major procurement. At a minimum, each person must
disclose at the time of submitting a bid, proposal, or offer to the
commission
or a manager all of the following items:
(1) A disclosure of the vendor's name and address and the names
and addresses of the following:
(A)
If the vendor is a corporation, the officers, directors, and
each stockholder in the 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 at least five percent (5%) in
equity securities need be disclosed.
(B)
If the vendor is a trust, the trustees and all persons entitled
to receive income or benefits from the trust.
(C)
If the vendor is an association, the members, officers, and
directors.
(D)
If the vendor is a partnership or joint venture, all of the
general partners, limited partners, or joint venturers.
(2) A disclosure of all the states and jurisdictions in which the
vendor does business and the nature of that business for each state
or jurisdiction.
(3) A disclosure of all the states and jurisdictions in which the
vendor has contracts to supply gaming goods or services,
including lottery goods and services, and of the nature of the
goods and services involved for each state or jurisdiction.
(4) 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 or terminated a
gaming license or contract of any kind and of the disposition in
each state or jurisdiction. If a gaming license or contract has been
revoked or terminated or has not been renewed or a gaming
license application or contract bid has been either denied or is
pending and has remained pending for more than six (6) months,
all of the facts and circumstances underlying this failure to
receive a license or contract must be disclosed.
(5) A tax clearance statement from the department of state
revenue certifying that the vendor is not on the most recent tax
warrant list.
(6) A disclosure of the details of a conviction or judgment of a
state or federal court of the vendor of a felony or any other
criminal offense other than a traffic violation.
(7) A disclosure of the details of a bankruptcy, an insolvency, a
reorganization, or any pending litigation of the vendor.
(8) If a vendor subcontracts part of the work to be performed, the
vendor shall disclose all the information required by this chapter
for the subcontractor as if the subcontractor were a vendor.
(9) Additional disclosures and information the commission
determines appropriate for the procurement involved.
SOURCE: IC 4-30-8-3; (07)SB0577.2.30. -->
SECTION 30. IC 4-30-8-3 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 3. A contract for a
major procurement with a vendor that does not comply with the
disclosure requirements described in section 2 of this chapter may not
be entered into and is not enforceable. A contract with a vendor who
does not comply with the requirements for periodically updating the
disclosures during the tenure of the contract as specified in the contract
may be terminated by the commission or by the manager. This section
shall be construed broadly and liberally to achieve full disclosure of all
information necessary to allow for a full and complete evaluation by
the commission of the competence, integrity, background, and
character of vendors for major procurement.
SOURCE: IC 4-30-8.5; (07)SB0577.2.31. -->
SECTION 31. IC 4-30-8.5 IS ADDED TO THE INDIANA CODE
AS A
NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE
UPON PASSAGE]:
Chapter 8.5. Licensing of Lottery Vendors
Sec. 1. This chapter applies to a major procurement if a
management agreement is in effect.
Sec. 2. As used in this chapter, "licensed vendor" means a
person issued a vendor's license under this chapter.
Sec. 3. As used in this chapter, "vendor's license" means a
license issued by the commission under this chapter.
Sec. 4. (a) A person may not sell, lease, provide, or contract to
sell, lease, or provide any of the following equipment, supplies, or
services to a manager unless the person holds a vendor's license:
(1) Printing of tickets to be used in a lottery game.
(2) Consultation services related to the design or operation of
games offered in the lottery.
(3) Any goods and services involving any of the following:
(A)
The official recording for lottery game play purposes
of a player's selection in a lottery game involving player
selections.
(B)
The receiving of a player's selections directly from a
player in a lottery game involving player selections.
(C) The drawing, determination, or generation of winners
in lottery games.
(D)
The security services required for the operation of the
lottery.
(b) Lottery supplies and equipment may not be distributed
unless the lottery supplies and equipment conform to standards
approved by the director under this chapter.
(c) A person is not required to hold a vendor's license to:
(1) enter into a retailer contract; or
(2) receive a certificate of authority as a retailer;
under IC 4-30-9.
Sec. 5. The commission may issue a vendor's license under this
chapter to a person if:
(1) the person has:
(A) applied for the vendor's license;
(B) paid a nonrefundable application fee set by the
commission;
(C)
paid an annual license fee set by the commission; and
(D) submitted the following on forms provided by the
commission:
(i)
if the applicant is an individual, two (2) sets of the
individual's fingerprints; and
(ii)
if the applicant is not an individual, two (2) sets of
fingerprints for each officer of the applicant; and
(2) the commission has determined that the applicant is
eligible for a vendor's license.
Sec. 6. A person may not receive a vendor's license if:
(1) the person has been convicted of a felony under Indiana
law, the laws of any other state, or laws of the United States;
(2) the person has knowingly or intentionally submitted an
application for a license under this chapter that contains false
information;
(3) the person is a member of the state lottery commission or
the gaming commission;
(4) the person is an officer, a director, or a managerial
employee of a person described in subdivision (1) or (2);
(5) the person employs an individual who:
(A) is described in subdivision (1), (2), or (3); and
(B) participates in the management or operation of the
lottery; or
(6) a license issued to the person:
(A) under this article or IC 4-33; or
(B) to supply gaming supplies in another jurisdiction;
has been revoked.
Sec. 7. The following information submitted, collected, or
gathered as part of an application to the commission for a vendor's
license is confidential for purposes of IC 5-14-3-4:
(1) Any information concerning a minor child of an applicant.
(2) The Social Security number of an applicant or the spouse
of an applicant.
(3) The home telephone number of an applicant or the spouse
of an applicant.
(4) An applicant's birth certificate.
(5) An applicant's driver's license number.
(6) The name or address of a previous spouse of the applicant.
(7) The date of birth of an applicant or the spouse of an
applicant.
(8) The place of birth of an applicant or the spouse of an
applicant.
(9) The personal financial records of an applicant, the spouse
of an applicant, or a minor child of an applicant.
Sec. 8. (a) A licensed vendor shall furnish to the commission a
list of all equipment, devices, supplies, and services provided to a
manager in connection with the lottery authorized under this
article.
(b) A licensed vendor shall keep books and records for the
furnishing of equipment, devices, supplies, and services to the
lottery separate from books and records of any other business
operated by the licensed vendor.
(c) A licensed vendor shall file a quarterly return with the
commission and the manager listing all sales and leases.
Sec. 9. A licensed vendor's equipment, devices, or supplies that
are used by a person in an unauthorized gambling or lottery
operation shall be forfeited to the state.
Sec. 10. (a) Unless a person's vendor's license is suspended,
expires, or is revoked, the vendor's license may be renewed
annually upon:
(1) the payment of an annual renewal fee set by the
commission; and
(2) a determination by the commission that the licensed
vendor is in compliance with this article.
(b) The holder of a vendor's license shall undergo a complete
investigation every three (3) years to determine that the licensed
vendor is in compliance with this article.
(c) Notwithstanding subsection (b), the commission may
investigate the holder of a vendor's license at any time the
commission determines it is necessary to ensure that the licensed
vendor is in compliance with this article.
(d) The holder of a vendor's license shall bear the cost of an
investigation or reinvestigation of the licensed vendor and any
investigation resulting from a potential transfer of ownership.
Sec. 11. If a licensed vendor or an employee of a licensed vendor
violates this article or engages in a fraudulent act, the commission
may do any combination of the following:
(1) Suspend, revoke, or restrict the person's vendor's license.
(2) Require the removal of any employee of a licensed vendor
who violates this article or engages in a fraudulent act.
(3) Impose a civil penalty of not more than twenty-five
thousand dollars ($25,000) against a person who has been
issued a vendor's license for each violation of this article.
Sec. 12. The commission shall adopt rules to implement this
chapter.
SOURCE: IC 4-30-9-1; (07)SB0577.2.32. -->
SECTION 32. IC 4-30-9-1 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 1.
(a) The
commission shall adopt rules under IC 4-22-2 specifying the terms and
conditions for contracting with retailers who will best serve the public
interest and promote the sale of lottery tickets.
(b) If a management agreement is in effect, the gaming
commission shall adopt rules governing retailer operations and
retailer claims and appeals. IC 5-22 does not apply to the selection
of retailers if a management agreement is in effect.
SOURCE: IC 4-30-9-2; (07)SB0577.2.33. -->
SECTION 33. IC 4-30-9-2 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 2. (a) In the
selection of retailers, the commission or a manager shall consider
factors such as the following:
(1) Financial responsibility.
(2) Integrity.
(3) Reputation.
(4) Accessibility of the place of business or activity to the public.
(5) Security of the premises.
(6) The sufficiency of existing retailers to serve the public.
(7) Convenience.
(8) The projected volume of sales for the lottery game involved.
(b) In consideration of the factors in subsection (a), the commission,
or a manager if a management agreement is in effect, may require
the information it considers necessary of any person proposing to enter
into a retailer's contract. However, the commission may not:
(1) establish a limitation on the number of retailers; and or
(2) permit a manager to establish a limitation on the number
of retailers.
The commission or manager shall make every effort to include small
business participation as retailers. Retailer selections shall be based on
business considerations and public convenience. Retailers shall be
selected without regard to political affiliation.
SOURCE: IC 4-30-9-3; (07)SB0577.2.34. -->
SECTION 34. IC 4-30-9-3 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 3.
(a) The
commission may not contract with a person as a retailer that:
(1) is less than eighteen (18) years of age;
(2) is engaged exclusively in the business of selling lottery tickets,
although this
subsection does not preclude the commission
or a
manager from selling lottery tickets;
(3) is on the most recent tax warrant list provided to the
commission
or a manager by the department of state revenue;
(4) has been convicted of, or entered a plea of guilty or nolo
contendere to, a felony committed in the preceding ten (10) years,
regardless of adjudication, unless the commission determines
that:
(A)
the person has been pardoned or the person's civil rights
have been restored;
(B)
subsequent to the conviction or entry of the plea the person
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 person is a firm, an association, a partnership, a trust,
a corporation, a limited liability company, or other entity, the
person has terminated its relationship with the individual
whose actions directly contributed to the person's conviction
or entry of the plea; or
(5) is:
(A)
a department, an agency, a commission, a division, an
authority, a board, a bureau, a hospital, or an office of the
state, including a state institution of postsecondary education;
(B)
an entity that performs an essential governmental function;
(C) part of the judicial department of government;
(D) part of the legislative department of government; or
(E)
a political subdivision of the state, including an agency, an
authority, a board, a bureau, a commission, a committee, a
council, a department, a division, an institution, an office, an
officer, or other similar body of a political subdivision.
(b) The commission may not authorize a manager to enter into
a retailer's contract with a person described in subsection (a).
SOURCE: IC 4-30-9-4; (07)SB0577.2.35. -->
SECTION 35. IC 4-30-9-4 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 4. (a) The
commission shall issue a certificate of authority to each person with
whom it contracts as a retailer for purposes of display under section 6
of this chapter. The issuance of a certificate does not confer upon the
retailer any right apart from that specifically granted in the contract.
The authority to act as a retailer is not assignable or transferable.
(b) The commission may authorize a manager to issue a
certificate described in subsection (a) if a management agreement
is in effect.
SOURCE: IC 4-30-9-5; (07)SB0577.2.36. -->
SECTION 36. IC 4-30-9-5 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 5. A contract
executed by the commission or a manager under this chapter must
specify the reasons for a suspension or termination of the contract, by
the commission, including the following:
(1) Commission of a violation of this article or of a rule adopted
under this article.
(2) Failure to accurately account for lottery tickets, revenues, or
prizes as required by the commission. contract.
(3) Commission of a fraud, deceit, or misrepresentation.
(4) Insufficient sale of tickets.
(5) Conduct prejudicial to public confidence in the lottery.
(6) A material change in a matter considered by the commission
or a manager executing the contract with the retailer.
SOURCE: IC 4-30-9-6; (07)SB0577.2.37. -->
SECTION 37. IC 4-30-9-6 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 6. Each retailer
shall post and keep conspicuously displayed in a location on the
premises accessible to the public the following:
(1) Its certificate of authority.
(2) With respect to each game, a statement supplied by the
commission or a manager of the estimated odds of winning a
prize for the game.
SOURCE: IC 4-30-9-7; (07)SB0577.2.38. -->
SECTION 38. IC 4-30-9-7 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 7. Before the
commission or a manager may enter into a contract with a retailer, the
retailer must provide a tax clearance statement from the department of
state revenue that certifies that the retailer does not owe delinquent
state taxes.
SOURCE: IC 4-30-9-8; (07)SB0577.2.39. -->
SECTION 39. IC 4-30-9-8 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 8. A contract with
a retailer may not authorize the sale of lottery tickets at more than one
(1) location. The commission, or the manager if a management
agreement is in effect, may enter into more than one (1) contract with
a retailer that has more than one (1) business location. A retailer must
have a separate certificate of authority to sell lottery tickets for each
business location approved by the commission or the manager. A
retailer may sell lottery tickets only at the location stated on the
certificate of authority.
SOURCE: IC 4-30-9-9; (07)SB0577.2.40. -->
SECTION 40. IC 4-30-9-9 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 9. With respect to
a retailer whose rental payments for premises are contractually
computed in whole or in part on the basis of a percentage of retail sales,
and where the computation of retail sales is not explicitly defined to
include the sale of tickets in a lottery, for purposes of such a
computation the amount of retail sales for lottery tickets by the retailer
may not exceed the amount of the compensation received by the
retailer from the commission or a manager.
SOURCE: IC 4-30-9-14; (07)SB0577.2.41. -->
SECTION 41. IC 4-30-9-14 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 14. A payment by
a retailer to the commission
or a manager for tickets may not be in
cash. All payments must be in the form of a check, bank draft,
electronic funds transfer, or other financial instrument
authorized by
the director. specified by the commission or the manager if a
management agreement is in effect.
SOURCE: IC 4-30-10-1; (07)SB0577.2.42. -->
SECTION 42. IC 4-30-10-1 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 1. All money
received by each retailer from the operation of the lottery, including all
ticket sales, interest, gifts, and donations, less the amount retained as
compensation for the sale of tickets and the amount paid out as prizes:
(1) shall be remitted to the commission or deposited in a public
depository, at the times and as directed by the commission; or
(2) if a management agreement is in effect, shall be remitted
to the manager or deposited in a public depository in Indiana,
at the times and as directed by the manager.
The commission or the manager, as the case may be, is responsible
for all administrative functions related to the receipt of funds The
commission and may require each retailer to file with the commission
submit reports of the retailer's receipts and transactions in the sale of
lottery tickets in the form and containing the information the
commission requires. required by the retailer's contract and by any
rules adopted under this article. The commission or the manager
may require any person, including a qualified public depository, to
perform any function, activity, or services in connection with the
operation that the commission or manager determines to be advisable
under this article. These functions, activities, or services constitute
lawful functions, activities, and services of the person.
SOURCE: IC 4-30-10-2; (07)SB0577.2.43. -->
SECTION 43. IC 4-30-10-2 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 2. The commission
or a manager authorized by the commission may require retailers to
establish separate electronic funds transfer accounts for the purpose of
receiving money from ticket sales, making payments to the commission
or manager, and receiving payments from the commission or
manager, as the case may be.
SOURCE: IC 4-30-10-3; (07)SB0577.2.44. -->
SECTION 44. IC 4-30-10-3 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 3.
(a) Each retailer
is liable to:
(1) the commission;
or
(2) a manager, if a management agreement is in effect;
for any and all tickets accepted or generated by an employee or
representative of that retailer. These tickets are considered to have been
purchased by the retailer, unless returned to the commission
or
manager within the time and in the manner prescribed by the
commission. retailer's contract or by a rule adopted under this
article.
(b) All money received by retailers from the sale of lottery tickets,
less the amount retained as compensation for the sale of the tickets and
the amount paid out as prizes by the retailer, shall be held in trust until
its:
(1) delivery to the commission or a manager; or
(2) electronic transfer to the administrative trust fund.
SOURCE: IC 4-30-11-2; (07)SB0577.2.45. -->
SECTION 45. IC 4-30-11-2 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 2.
Notwithstanding IC 26-1-9.1-406, the right of any person to a prize
is not assignable. A prize may be paid to the estate of a deceased prize
winner or to a person designated under an appropriate judicial order.
SOURCE: IC 4-30-11-3; (07)SB0577.2.46. -->
SECTION 46. IC 4-30-11-3 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 3. A prize may not
be paid to a person who is less than eighteen (18) years of age unless
the winning ticket was lawfully purchased and made a gift to the minor.
In that case the commission shall:
(1) direct the payment to an adult member of the minor's family
or the legal guardian of the minor as custodian for the minor; or
(2) require a manager to direct the payment to an adult
member of the minor's family or the legal guardian of the
minor as custodian for the minor.
The person named as guardian has the same powers and duties as
prescribed for a guardian under Indiana guardianship law.
SOURCE: IC 4-30-11-4; (07)SB0577.2.47. -->
SECTION 47. IC 4-30-11-4 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 4. A prize may not
be paid if it arises from tickets that are determined to be:
(1) stolen, counterfeit, altered, fraudulent, unissued, produced or
issued in error, or unreadable;
(2) not received or not recorded by:
(A) the commission's applicable deadlines; or
(B) the manager's applicable deadlines, if a management
agreement is in effect;
(3) lacking in captions that confirm and agree with the lottery play
symbols that are appropriate to the lottery game involved; or
(4) not in compliance with any additional specific rules and public
or confidential validation and security tests of:
(A) the commission; or
(B) the manager, if a management agreement is in effect;
applicable to the particular lottery game involved.
SOURCE: IC 4-30-11-6; (07)SB0577.2.48. -->
SECTION 48. IC 4-30-11-6 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 6. For the
convenience of the public, retailers may be authorized to pay winners
an amount not to exceed five hundred ninety-nine dollars ($599) after
performing validation procedures on their premises that are required
by:
(1) the commission; or
(2) the manager, if a management agreement is in effect;
for the lottery game involved.
SOURCE: IC 4-30-11-7; (07)SB0577.2.49. -->
SECTION 49. IC 4-30-11-7 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 7. Holders of
lottery tickets are entitled to claim prizes for one hundred eighty (180)
days after the drawing or at the end of the lottery game play in which
the prize was won. However, with respect to a game in which the
player may determine instantly if the player has won or lost, the right
to claim prizes exists for sixty (60) days after the end of the lottery
game. If a valid claim is not made for a prize within the applicable
period, the prize is considered an unclaimed prize for purposes of
section 9 of this chapter.
SOURCE: IC 4-30-11-8; (07)SB0577.2.50. -->
SECTION 50. IC 4-30-11-8 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 8. A prize may not
be paid on a ticket that is purchased or sold in violation of this article
or to a person who is prohibited from purchasing a lottery ticket under
this article. Such a prize is considered an unclaimed prize for purposes
of section 9 of this chapter.
SOURCE: IC 4-30-11-10; (07)SB0577.2.51. -->
SECTION 51. IC 4-30-11-10 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 10. (a) The state
lottery commission is and its members and employees are
discharged of all liability upon payment of a prize.
(b) If a management agreement is in effect:
(1) the gaming commission and its members and employees;
and
(2) the manager and its directors, officers, employees, agents,
and equity holders;
are discharged of all liability upon payment of a prize.
(c) If an annuity is purchased by a manager to cover the
payment of a prize and is assigned to a prize winner, the following
are relieved of any liability to the prize winner:
(1) The state.
(2) The gaming commission and its members and employees.
(3) The manager and its directors, officers, employees, agents,
and equity holders.
SOURCE: IC 4-30-11-11; (07)SB0577.2.52. -->
SECTION 52. IC 4-30-11-11 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 11. (a) The
treasurer of state, the department of state revenue, the department of
administration, the Indiana department of transportation, the attorney
general, and the courts shall identify to the commission, or to the
manager, if a management agreement is in effect, in the form and
format prescribed by the commission and approved by the auditor of
state, a person who:
(1) owes an outstanding debt to to a state agency;
(2) owes delinquent state taxes; or
(3) owes child support collected and paid to a recipient through
a court.
(b) Before the payment of a prize of more than five hundred
ninety-nine dollars ($599) to a claimant identified under subsection (a),
the commission or the manager, if a management agreement is in
effect, shall transmit the prize money to the auditor of state who shall
authorize payment of the balance to the prize winner after deduction of
the obligation. If a prize winner owes multiple obligations subject to
offset under this section and the prize is insufficient to cover all
obligations, the amount of the prize shall be applied as follows:
(1) First, to the child support obligations owed by the prize winner
that are collected and paid to a recipient through a court.
(2) Second, to judgments owed by the prize winner.
(3) Third, to tax liens owed by the prize winner.
(4) Fourth, to unsecured debts owed by the prize winner.
Within each of the categories described in subdivisions (1) through (4),
the amount and priority of the prize shall be applied in the manner that
the auditor of state determines to be appropriate. The commission shall
reimburse the auditor of state pursuant to an agreement under
IC 4-30-15-5 for the expenses incurred by the auditor of state in
carrying out the duties required by this section. If a management
agreement is in effect, the manager shall reimburse the auditor of
state for actual expenses incurred by the auditor of state in
carrying out the duties required by this section.
(c) As used in this section, "debt" means an obligation that is
evidence evidenced by an assessment or lien issued by a state agency,
a judgment, or a final order of an administrative agency.
SOURCE: IC 4-30-12-2; (07)SB0577.2.53. -->
SECTION 53. IC 4-30-12-2 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 2. (a) A member
or employee of the commission or a relative living in the same
household with a member or employee of the commission may not
purchase a lottery ticket.
(b) A director, an officer, or an employee of a manager or a
relative living in the same household with a director, an officer, or
an employee of a manager may not purchase a lottery ticket.
SOURCE: IC 4-30-12-3; (07)SB0577.2.54. -->
SECTION 54. IC 4-30-12-3 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 3. An officer or
employee of a vendor that:
(1) is providing major procurement goods or services to the
commission or a manager; or
(2) has executed a contract for a major procurement;
or a relative living in the same household with an officer or employee
of the vendor may not purchase a lottery ticket.
SOURCE: IC 4-30-13-1; (07)SB0577.2.55. -->
SECTION 55. IC 4-30-13-1 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 1. A person who
knowingly:
(1) sells a lottery ticket and is not authorized by the commission,
a manager, or this article to engage in such a sale;
(2) sells a lottery ticket to a minor; or
(3) sells a lottery ticket at a price other than that established by
the commission or a manager;
commits a Class A misdemeanor.
SOURCE: IC 4-30-14-5; (07)SB0577.2.56. -->
SECTION 56. IC 4-30-14-5 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 5. A person who
uses point-of-sale material issued by the commission or a manager or
otherwise represents that the person is a retailer without being under
contract with the commission or a manager to act as a retailer
commits a Class A misdemeanor.
SOURCE: IC 4-30-15-1; (07)SB0577.2.57. -->
SECTION 57. IC 4-30-15-1 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 1. There is created
an administrative trust fund to be administered by the state lottery
commission in accordance with this article and any management
agreement that is entered into under IC 4-30-21. All money received
by the state lottery commission shall be deposited into the fund. All
money in the fund is continually appropriated to the state lottery
commission for the purposes specified in this article.
SOURCE: IC 4-30-16-1; (07)SB0577.2.58. -->
SECTION 58. IC 4-30-16-1 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 1. Subject to the
terms of a management agreement, the money in the administrative
trust fund shall be used for the following:
(1) To pay prizes.
(2) To pay the expenses for the operation of the lottery, including
setting aside an amount determined by the commission to be
necessary for the cash flow needs of the commission. These
expenses include all costs incurred in the operation and
administration of the lottery and all costs resulting from any
contracts entered into for the purchase or lease of goods and
services required by the lottery, including the following:
(A) The compensation paid to retailers.
(B)
The costs of supplies, materials, tickets, independent audit
services, independent studies, data transmission, advertising,
promotion, incentives, public relations, communications,
security, bonding for retailers, printing, distribution of tickets,
and reimbursing other governmental entities for services
provided to the lottery.
(C)
The costs of any other goods and services necessary for
carrying out this article.
(3) To make transfers of the revenue remaining after making the
payments necessary under subdivisions (1) and (2) (referred to as
"surplus revenue" in this article) to the treasurer of state for
deposit as provided in this chapter.
SOURCE: IC 4-30-16-3; (07)SB0577.2.59. -->
SECTION 59. IC 4-30-16-3, AS AMENDED BY P.L.2-2006,
SECTION 7, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
UPON PASSAGE]: Sec. 3. (a)
Subject to the terms of a management
agreement, the commission shall transfer the surplus revenue in the
administrative trust fund as follows:
(1) Before the last business day of January, April, July, and
October, the commission shall transfer to the treasurer of state, for
deposit in the Indiana state teachers' retirement fund
(IC 5-10.4-2), seven million five hundred thousand dollars
($7,500,000). Notwithstanding any other law, including any
appropriations law resulting from a budget bill (as defined in
IC 4-12-1-2), the money transferred under this subdivision shall
be set aside in the pension stabilization fund (IC 5-10.4-2-5) to be
used as a credit against the unfunded accrued liability of the
pre-1996 account (as defined in IC 5-10.4-1-12) of the Indiana
state teachers' retirement fund. The money transferred is in
addition to the appropriation needed to pay benefits for the state
fiscal year.
(2) Before the last business day of January, April, July, and
October, the commission shall transfer:
(A)
two million five hundred thousand dollars ($2,500,000) of
the surplus revenue to the treasurer of state for deposit in the
"k" portion of the pension relief fund (IC 5-10.3-11); and
(B)
five million dollars ($5,000,000) of the surplus revenue to
the treasurer of state for deposit in the "m" portion of the
pension relief fund (IC 5-10.3-11).
(3) The surplus revenue remaining in the fund on the last day of
January, April, July, and October after the transfers under
subdivisions (1) and (2) shall be transferred by the commission to
the treasurer of state for deposit on that day in the build Indiana
fund.
(b) Subject to the terms of a management agreement, the
commission may make transfers to the treasurer of state more
frequently than required by subsection (a). However, the number of
transfers does not affect the amount that is required to be transferred
for the purposes listed in subsection (a)(1) and (a)(2). Any amount
transferred during the month in excess of the amount required to be
transferred for the purposes listed in subsection (a)(1) and (a)(2) shall
be transferred to the build Indiana fund.
SOURCE: IC 4-30-18-1; (07)SB0577.2.60. -->
SECTION 60. IC 4-30-18-1 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 1. This article does
not authorize any lottery except the lottery operated under this article:
(1) by the commission; under this article. or
(2) on behalf of the commission by a manager under a
management agreement.
SOURCE: IC 4-30-18-3; (07)SB0577.2.61. -->
SECTION 61. IC 4-30-18-3 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 3. (a) Local
governmental authority concerning all matters relating to the operation
of a lottery are preempted by the state, and a county, municipality, or
other political subdivision of the state may not enact an ordinance
relating to the operation of the lottery authorized by this article.
However, this section does not prohibit a political subdivision of the
state from requiring a retailer to obtain an occupational license for any
business unrelated to the sale of lottery tickets.
(b) A county, municipality, or another political subdivision may
not take any action that would have the effect of impairing a
management agreement.
SOURCE: IC 4-30-19-5; (07)SB0577.2.62. -->
SECTION 62. IC 4-30-19-5 IS ADDED TO THE INDIANA CODE
AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE
UPON PASSAGE]: Sec. 5. (a) If the commission enters into a
management agreement under this article, the manager shall
undergo an audit of the manager's annual financial statements
under the terms of the management agreement.
(b) To ensure the integrity of the lottery and compliance with
this article and the management agreement, the commission may
require, at any time, a special audit of a manager to be conducted
by an independent certified public accountant licensed in Indiana.
The scope, procedures, and reporting requirements of the audit
must be set forth in the management agreement.
(c) An audit required by or under this section must be prepared
at the expense of the manager.
SOURCE: IC 4-30-20; (07)SB0577.2.63. -->
SECTION 63. IC 4-30-20 IS ADDED TO THE INDIANA CODE
AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE
UPON PASSAGE]:
Chapter 20. Lottery Manager
Sec. 1. The legislative intent for this chapter is to provide a
means for the formation of an entity to serve as a manager of the
lottery under a management agreement authorized under this
article.
Sec. 2. The purpose of an entity formed under this chapter is
limited to:
(1) entering into and performing a management agreement
under this article; and
(2) the activities incidental or related to the accomplishment
of the purposes permitted under subdivision (1).
Sec. 3. (a) One (1) or more persons may form an entity to serve
as a manager by filing articles of incorporation with the secretary
of state under IC 23-1. An entity formed under this subsection has
the powers and privileges of other corporations, except where
inconsistent with the provisions and purposes of this article.
IC 23-1 applies to an entity formed under this subsection to the
extent the provisions do not conflict with this article.
(b) One (1) or more persons may form an entity to serve as a
manager by filing articles of organization with the secretary of
state under IC 23-18. An entity formed under this subsection has
the powers and privileges of other limited liability companies and
is subject to the duties, restrictions, and liabilities of other limited
liability companies, except where inconsistent with the provisions
and purposes of this article. IC 23-18 applies to an entity formed
under this subsection to the extent the provisions do not conflict
with this article.
SOURCE: IC 4-30-21; (07)SB0577.2.64. -->
SECTION 64. IC 4-30-21 IS ADDED TO THE INDIANA CODE
AS A
NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE
UPON PASSAGE]:
Chapter 21. Lottery Management Agreement
Sec. 1. In construing this chapter, it is the intent of the general
assembly that the manager be accountable to the general assembly
and the people of Indiana through a system of audits and reports
and by complying with the financial disclosure requirements of this
chapter. The powers conferred by this chapter are in addition and
supplemental to the powers conferred by any other law. If any
other law or rule is inconsistent with this chapter, this chapter is
controlling as to any management agreement entered into under
this chapter.
Sec. 2. (a) This chapter contains full and complete authority for
a management agreement between the commission and an entity
formed under IC 4-30-20. IC 5-22, IC 4-30-8, and any rules
adopted under either of those provisions do not apply to a
management agreement under this article, and except as provided
in this chapter, no law, procedure, proceeding, publication, notice,
consent, approval, order, or act by the commission, the Indiana
finance authority, or any other officer, department, agency, or
instrumentality of the state or any political subdivision is required
for the commission to enter into a management agreement under
this article.
(b) This chapter contains full and complete authority for the
state lottery commission or a successor agency to approve any
subcontracts entered into by a manager under the terms of a
management agreement.
Sec. 3. As used in this chapter, "authority" means the Indiana
finance authority established under IC 4-4-11.
Sec. 4. As used in this chapter, "commission" means the state
lottery commission.
Sec. 5. As used in this chapter, "control" means the power to
exercise authority over or to direct the management and policies
of an individual, a business, or any other entity.
Sec. 6. As used in this chapter, "financial statement" means any
of the following:
(1) Balance sheet.
(2) Income statement.
(3) Profit and loss statement.
(4) Statement of cash flow.
(5) Sources and uses of funds statements.
(6) Notes to financial statements.
Sec. 7. As used in this chapter, "offeror" means a person that
responds to a request for qualifications under this chapter.
Sec. 8. As used in this chapter, "request for qualifications"
means all materials and documents prepared by the commission or
the authority on behalf of the commission to solicit the following
from offerors:
(1) statements of qualifications; and
(2) proposals to enter into a management agreement.
Sec. 9. As used in this chapter, "selected offer" means the final
offer of an offeror that is the preliminary selection of the authority
to be the manager for the lottery under section 19 of this chapter.
Sec. 10. Subject to the other provisions of this chapter, the
commission may enter into a management agreement with a
manager for an initial term not to exceed thirty (30) years.
Sec. 11. The commission may not enter into a management
agreement that authorizes a manager to operate any of the
following games or a game simulating any of the following games:
(1) Keno.
(2) Video lottery games.
(3) Pari-mutuel wagering on horse or dog racing.
(4) A game in which winners are selected on the results of a
race or sporting event.
(5) Any other game commonly considered to be a form of
gambling that is not:
(A) a game; or
(B) a variation of a game;
that the commission operated before the management
agreement is executed or is operating on the date the
management agreement is executed.
Sec. 12. (a) The management agreement must establish a
benchmark amount of at least one billion dollars ($1,000,000,000).
The management agreement must require the manager to make an
initial payment to the authority on the effective date of the
management agreement in an amount that exceeds the benchmark
amount established in the management agreement.
(b) The initial payment required under subsection (a) shall be
deposited in the management agreement fund established by
IC 4-30-22.
(c) If the manager fails to make a payment under this section by
the due date of the payment, the management agreement is
terminated.
Sec. 13. (a) The management agreement must require the
manager to pay a royalty in the amount of fifty million dollars
($50,000,000) to the authority four (4) times each year beginning
on a date that is specified in the management agreement and that
occurs during the first year after the execution of the management
agreement. The payments received under this subsection shall be
deposited in the administrative trust fund established by
IC 4-30-15-1.
(b) The management agreement must include the following
provisions to ensure that the manager does not earn excess revenue
under the management agreement:
(1) The budget agency shall calculate the average annual
growth (expressed as a percentage) in gross revenue earned
by the commission during the last five (5) full state fiscal years
preceding July 1, 2006. For purposes of this subsection, this
percentage is referred to as the "baseline growth percentage".
(2) Beginning with the second full state fiscal year after the
execution of the management agreement, the budget agency
shall for each state fiscal year calculate the growth (expressed
as a percentage) in gross revenue earned by the manager
under the management agreement, as compared to the
preceding state fiscal year.
(3) The commission shall establish an excess payments
account for purposes of this subsection. Any earnings from
money in the excess payments account accrue to the account.
Money in the excess payments account may be used only to
make payments to a manager as required by this subsection
and to receive payments from a manager as required by this
subsection. Money in the excess payments account is
continuously appropriated for purposes of this subsection.
(4) If the percentage calculated by the budget agency under
subdivision (2) for a particular state fiscal year exceeds the
baseline growth percentage, the manager must make an
additional payment to the commission. The amount of the
additional payment for the state fiscal year is equal to:
(A) the gross revenue earned by the manager from lottery
tickets in the state fiscal year; multiplied by
(B)
the difference between the percentage calculated by the
budget agency under subdivision (2) for the state fiscal
year and the baseline growth percentage.
The commission shall deposit any additional payment made
by the manager under this subdivision into the excess
payments account.
(5) If the baseline growth percentage exceeds the percentage
calculated by the budget agency under subdivision (2) for a
particular state fiscal year, the commission must make a
payment to the manager from the excess payments account.
However, the commission is required to make a payment to
the manager only if the excess payments account has a
positive balance. The amount of the payment by the
commission for the state fiscal year is equal to the lesser of:
(A) the result of:
(i)
the gross revenue earned by the manager from lottery
tickets in the state fiscal year; multiplied by
(ii)
the difference between the baseline growth
percentage and the percentage calculated by the budget
agency under subdivision (2) for the state fiscal year; or
(B) the balance in the excess payments account.
(6) The management agreement must specify the time by
which a payment required under this subsection shall be
made.
(7) If at the expiration or termination of the management
agreement there is money remaining in the excess payments
account, the commission shall transfer that money to the
administrative trust fund established by IC 4-30-15-1.
(c) If the manager fails to make a payment under this section by
the due date of the payment, the management agreement is
terminated.
Sec. 14. A management agreement must address the following:
(1) The original term of the management agreement.
(2) A requirement that the manager be formed under
IC 4-30-20.
(3) A requirement that the manager locate its principal office
within Indiana.
(4) The transition of rights and obligations from the
commission to the manager with respect to the operation of
the lottery, including:
(A)
the right to use, or ownership of, equipment and other
assets used in the operation of the lottery; and
(B) the rights and obligations under contracts with
retailers and vendors.
(5) The implementation of a comprehensive security program
by the manager.
(6) The implementation of a comprehensive system of internal
audits.
(7) The implementation of a program by the manager to curb
compulsive gambling by persons playing the lottery.
(8) A system for determining the following:
(A) The type of lottery games to be conducted.
(B) The method of selecting winning tickets.
(C)
The manner of payment of prizes to holders of winning
tickets.
(D) The frequency of drawings of winning tickets.
(E) The method to be used in selling tickets.
(9) A system for verifying the validity of tickets claimed to be
winning tickets.
(10) The basis upon which retailer commissions are
established by the manager. Retailer commissions may not be
less than five percent (5%).
(11) Minimum payouts.
(12) A requirement that advertising and promotion must be:
(A)
consistent with the dignity and integrity of the state;
and
(B) approved by the commission.
The management agreement must include guidelines to ensure
that advertising and promoting of the lottery by the manager
are not misleading and fairly balance the potential benefits
and the potential costs and risks of playing lottery games.
(13) The establishment of a code of ethics for officers and
employees of the manager.
(14) Monitoring of the manager's practices by the commission
and the taking of actions by the commission that it considers
appropriate to ensure that the manager is in compliance with
the terms of the management agreement.
(15) The requirement that the manager periodically file
appropriate financial statements in a form and manner
acceptable to the commission.
(16) Cash reserve requirements.
(17) Procedural requirements for obtaining approval by the
commission when a management agreement, or an interest in
a management agreement, is sold, assigned, or otherwise
transferred, or pledged as collateral to secure financing. A
management agreement, or an interest in a management
agreement, may not be sold, assigned, or otherwise
transferred, or pledged as collateral to secure financing
without the approval of the commission.
(18) Grounds for termination of the management agreement
by the commission or a manager.
(19) Procedures for amendment of the management
agreement.
(20) A provision prohibiting the commission from entering
into another management agreement under this article as long
as the management agreement has not been terminated.
(21) The transition of rights and obligations, including any
associated equipment or other assets used in the operation of
the lottery, from the manager to any successor manager of the
lottery, including the commission, following the termination
of or foreclosure upon the management agreement.
(22) Ownership of all copyrights, trademarks, and service
marks by the commission in the name of the state.
Sec. 15. (a) A manager shall undergo a complete investigation
every three (3) years by the commission to determine that the
manager remains in compliance with this article and the
management agreement.
(b) The manager shall bear the cost of an investigation or
reinvestigation of the manager.
Sec. 16. (a) Before the commission enters into a management
agreement under this chapter, a request for qualifications must be
issued as set forth in this chapter. A request for qualifications for
a management agreement may be issued in one (1) or more phases.
(b) A request for qualifications must include the following:
(1) The factors or criteria that will be used in evaluating an
offeror's statement of qualifications and proposal.
(2) A statement that a proposal must be accompanied by
evidence of the offeror's financial responsibility.
(3) A statement concerning whether discussions may be
conducted with the offerors for the purpose of clarification to
ensure full understanding of and responsiveness to the
solicitation requirements.
(4) A statement concerning any other information to be
considered in evaluating the offeror's qualifications and
proposal.
(c) Notice of a request for qualifications shall be published two
(2) times in accordance with IC 5-3-1 at least one (1) week apart,
with the second publication made at least seven (7) days before any
initial submission is due.
(d) As provided in a request for qualifications, discussions may
be conducted with the offerors for the purpose of clarification to
ensure full understanding of and responsiveness to the solicitation
requirements.
Sec. 17. (a) The authority may not disclose the contents of
proposals during discussions or negotiations with eligible offerors.
(b) The authority may, in its discretion in accordance with
IC 5-14-3, treat as confidential all records relating to discussions
or negotiations between the authority and eligible offerors if those
records are created while discussions or negotiations are in
progress.
(c) Notwithstanding subsections (a) and (b), and with the
exception of parts that are confidential under IC 5-14-3, the terms
of the selected offer negotiated under this article shall be available
for inspection and copying under IC 5-14-3 after negotiations with
the offerors have been completed.
(d) When disclosing the terms of the selected offer under
subsection (c), the authority shall certify that the information being
disclosed accurately and completely represents the terms of the
selected offer.
(e) The authority shall disclose the contents of all proposals,
except the parts of any proposal that may be treated as confidential
in accordance with IC 5-14-3, when either:
(1) the request for qualifications process is terminated under
section 19 of this chapter; or
(2) the management agreement has been executed and the
closing for each financing transaction required to provide
funding to carry out the management agreement has been
conducted.
Sec. 18. (a) The authority may negotiate with one (1) or more
offerors who the authority determines are responsible and
reasonably capable of managing the lottery and may seek to obtain
a final offer from one (1) or more of those offerors.
(b) The authority shall consider the statement of qualifications
and the proposals to enter into a management agreement that are
submitted in response to a request for qualifications in making a
determination under this section, including the following:
(1) The offeror's expertise, qualifications, competence, skills,
and plan to perform its obligations under the management
agreement in accordance with the management agreement.
(2) The financial strength of the offeror, including its
capitalization and available financial resources.
(3) The experience of the offeror in operating government
authorized lotteries and gaming and other similar projects
and the quality of the offeror's past or present performance
on other similar or equivalent engagements.
(4) The integrity, background, and reputation of the offeror.
(c) The requirements set forth in subsection (b) also apply to the
approval of any successor manager.
Sec. 19. (a) After the final offers from offerors have been
negotiated under section 18 of this chapter, the authority shall, on
behalf of the commission:
(1) make a preliminary selection of an offeror as a manager
for the lottery; or
(2) terminate the request for qualifications process.
(b) If the authority makes a preliminary selection of a manager
under this section, the commission shall schedule a public hearing
on the preliminary selection and publish notice of the hearing one
(1) time in accordance with IC 5-3-1 at least seven (7) days before
the hearing. The notice must include the following:
(1) The date, time, and place of the hearing.
(2) The subject matter of the hearing.
(3) A brief description of the management agreement to be
awarded.
(4) The identity of the offeror that has been preliminarily
selected as a manager.
(5) The address and telephone number of the commission.
(6) A statement indicating that, subject to section 17 of this
chapter, and except for those parts that are confidential under
IC 5-14-3, the selected offer and an explanation of the basis
upon which the preliminary selection was made are available
for public inspection and copying at the principal office of the
commission during regular business hours.
(c) Subject to section 17 of this chapter, and except for those
parts that are confidential under IC 5-14-3, the selected offer and
a written explanation of the basis upon which the preliminary
selection was made shall be made available for inspection and
copying in accordance with IC 5-14-3 at least seven (7) days before
the hearing scheduled under this section.
(d) At the hearing, the commission shall allow the public to be
heard on the preliminary selection.
Sec. 20. (a) After the hearing required under section 19 of this
chapter, the commission shall determine if a management
agreement should be entered with the offeror that submitted the
selected offer. If the commission makes a favorable determination,
the commission shall submit the determination to the governor and
the budget committee.
(b) After review of the commission's determination by the
budget committee, the governor may accept or reject the
determination of the commission. If the governor accepts the
commission's determination, the governor shall designate the
offeror who submitted the selected offer as a manager for the
lottery. The commission shall publish notice of the designation of
a manager for the lottery one (1) time in accordance with IC 5-3-1.
(c) After the governor designates a manager, the commission
may execute a management agreement with the designated
manager.
(d) If the commission enters into a management agreement
under this article, the commission must execute the initial
management agreement before January 1, 2008. The commission
may not execute an initial management agreement after December
31, 2007.
Sec. 21. A manager may finance its obligations with respect to
the lottery and the management agreement in the amounts and
upon the terms and conditions determined by the manager.
However, any bonds, debt, other securities, or other financing
issued for the purposes of this section shall not be considered to
constitute a debt of the state or any political subdivision of the state
or a pledge of the faith and credit of the state or any political
subdivision of the state.
Sec. 22. An action to contest the validity of a management
agreement entered into under this chapter:
(1) may not be brought after the fifteenth day following the
publication of the notice of the designation of a manager
under the management agreement as provided in section 20
of this chapter; and
(2) is governed by IC 34-13-5.
Sec. 23. (a) The commission and the authority may exercise any
powers provided under this chapter in participation or cooperation
with each other or any other governmental entity and enter into
any contracts to facilitate that participation or cooperation without
compliance with any other statute.
(b) The commission and the authority may make and enter into
all contracts and agreements necessary or incidental to the
performance of the commission's or the authority's duties under
this chapter and the execution of the commission's or the
authority's powers under this article. These contracts or
agreements are not subject to any approvals by any other
governmental entity and may be for any term of years and contain
any terms that are considered reasonable by the commission or the
authority.
(c) The commission and the authority may make and enter into
all contracts and agreements with a state agency necessary or
incidental to the performance of the duties and the execution of the
powers granted to the commission, the authority, or the state
agency in accordance with this chapter or the management
agreement. These contracts or agreements are not subject to any
approvals by any other governmental entity, and may be for any
term of years and contain any terms that are considered
reasonable by the commission, the authority, or the state agency.
(d) The commission may pay any amounts owed by the
commission under a management agreement from any funds
available to the commission under this chapter or any other
statute.
(e) The commission may borrow money from the authority to
pay any amounts owed by the commission or to reimburse funds
made available under this section. The loan agreement or financing
agreement must plainly state that it is not an indebtedness of the
state but constitutes a corporate obligation solely of the
commission and is payable solely from revenues of the commission,
including money in the administrative trust fund established by
IC 4-30-15-1, and the proceeds of future loan agreements or other
financing agreements.
Sec. 23.5. (a) The commission may not sell the authorization to
operate the lottery.
(b) Any tangible personal property used exclusively in
connection with the lottery:
(1) that is owned by the commission and leased to the
manager shall be owned by the commission in the name of the
state; and
(2) shall be considered to be public property devoted to an
essential public and governmental function.
(c) Any bonds, debt, other securities, or other financing issued
by the manager to finance its obligations with respect to the
management agreement shall not be considered to constitute a debt
of the state or any political subdivision of the state or a pledge of
the faith and credit of the state or any political subdivision.
Sec. 24. (a) The authority may exercise any of its powers under
IC 4-4-11 or any other law as necessary or desirable for the
execution of the authority's powers under this chapter.
Notwithstanding any provisions in IC 4-4-10.9 or IC 4-4-11, the
authority may issue bonds under IC 4-4-11 or any other statute to
make a loan to the commission for:
(1) any amounts owed by the commission; or
(2) funds made available by the commission;
under this chapter.
(b) Subject to review by the budget committee and approval by
the budget director, a management agreement, a loan agreement,
or any other financing agreement entered into under this chapter
may establish a procedure for the commission, the authority, or a
person acting on behalf of the commission or the authority to
certify to the general assembly the amount needed to pay any
amounts owed by the commission or the authority under the
management agreement, the loan agreement, or any other
financing agreement under this chapter.
Sec. 25. Neither this article nor any management agreement
entered into under this article prohibits the general assembly from
authorizing forms of gambling that are not in direct competition
with the lottery.
Sec. 26. (a) The general assembly finds that it is in the interest
of the state of Indiana and the bodies corporate and politic
established by state law that the general assembly provide means
from time to time to fund and finance payment and reimbursement
obligations under contracts and other agreements, including a
management agreement, loan agreements, and other financing
agreements under this chapter.
(b) In addition to its other purposes, the authority shall exist
and operate for the purpose of providing means to finance payment
and reimbursement obligations under management agreements,
loan agreements, and other financing agreements under this
chapter.
SOURCE: IC 4-30-22; (07)SB0577.2.65. -->
SECTION 65. IC 4-30-22 IS ADDED TO THE INDIANA CODE
AS A
NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE
UPON PASSAGE]:
Chapter 22. Lottery Management Agreement Fund
Sec. 1. As used in this chapter, "account" refers to an account
established within the fund.
Sec. 1.5. As used in this chapter, "authority" means the Indiana
finance authority established under IC 4-4-11.
Sec. 2. As used in this chapter, "fund" refers to the management
agreement fund established by section 3 of this chapter.
Sec. 3. (a) The management agreement fund is established to:
(1) make distributions required under section 5 of this
chapter;
(2) pay any amounts owed by the authority in connection with
the execution of a management agreement under IC 4-30-21;
and
(3) reimburse the authority for any expenses incurred by the
authority in connection with the execution of a management
agreement under IC 4-30-21.
(b) The authority shall hold, administer, and manage the fund.
(c) The fund consists of the following:
(1) The initial payment received from a manager under
IC 4-30-21-12.
(2) Appropriations, if any, made by the general assembly.
(3) Grants and gifts intended for deposit in the fund.
(4) Interest, premiums, gains, or other earnings on the fund.
(d) The authority shall establish the following separate accounts
within the fund:
(1) The lottery payment account.
(2) The administration account.
(e) Money in the fund shall be deposited, paid, and secured in
the manner required under IC 4-4-11-32.
(f) The fund is not part of the state treasury and is considered
a trust fund for purposes of IC 4-9.1-1-7. Money may not be
transferred, assigned, or otherwise removed from the fund by the
state board of finance, the budget agency, or any other state
agency.
(g) Money in the fund at the end of a state fiscal year does not
revert to the state general fund.
Sec. 4. (a) Before any allocations are made from the fund under
this chapter, the authority shall determine the total amount
necessary to pay the amounts owed by the authority related to the
execution of a management agreement under IC 4-30-21.
(b) Before making the allocations required by section 5 of this
chapter, the authority shall allocate the amount determined under
subsection (a) to the administration account. Money in the
administration account may be used only for the purpose described
in section 3(a)(2) or 3(a)(3) of this chapter.
Sec. 5. After making the allocation required under section 4 of
this chapter, the remaining money in the fund shall be allocated to
the lottery payment account. Within thirty (30) days after a
management agreement has been executed under IC 4-30-21 and
the closing for each financing transaction required to provide
funding to carry out the agreement has been conducted, the
authority shall transfer the following from the lottery payment
account:
(1) To the Hoosier hope scholarship fund established under
IC 21-48-8-1, the lesser of four hundred million dollars
($400,000,000) or an amount equal to forty percent (40%) of
the money in the lottery payment account.
(2) To the Indiana life sciences fund established by
IC 5-28-28-6, the lesser of six hundred million dollars
($600,000,000) or an amount equal to sixty percent (60%) of
the money in the lottery payment account.
(3) To the pension relief fund established by IC 5-10.3-11-1,
the remainder, if any, of the money in the lottery payment
account after making the transfers required by subdivisions
(1) and (2). However, if the remainder of the money in the
lottery payment account after making the transfers required
by subdivisions (1) and (2) exceeds three hundred million
dollars ($300,000,000), the excess above three hundred million
dollars ($300,000,000) shall be transferred to the state general
fund.
SOURCE: IC 5-10.3-11-1; (07)SB0577.2.66. -->
SECTION 66. IC 5-10.3-11-1 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 1. There is created
within the public employees' retirement fund a separate account known
as the pension relief fund. This fund is administered by the board of
trustees of the public employees' retirement fund, referred to as the
"state board" in this chapter. The pension relief fund consists of
revenues received under IC 4-30-16-3, IC 6-7-1-28.1(4), IC 7.1-4-12-1,
any appropriations to the fund, and earnings on these revenues.
SOURCE: IC 5-28-28; (07)SB0577.2.67. -->
SECTION 67. IC 5-28-28 IS ADDED TO THE INDIANA CODE
AS A
NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE
UPON PASSAGE]:
Chapter 28. Indiana Life Sciences Fund
Sec. 1. As used in this chapter, "applicant" means a
postsecondary research institution that submits an application for
a grant from the fund.
Sec. 2. As used in this chapter, "fund" refers to the Indiana life
sciences fund established by section 6 of this chapter.
Sec. 3. As used in this chapter, "life sciences" refers to research
in bioscience, biotechnology, biomedicine, medical device
technology, pharmaceuticals, biomedical engineering,
bioenergetics, health care engineering, nanotechnology within the
life sciences field, agri-sciences, and other related health disciplines
and disciplines considered life sciences.
Sec. 4. As used in this chapter, "postsecondary research
institution" means a public or private college or university in
Indiana that offers life sciences graduate programs or life sciences
research programs.
Sec. 5. As used in this chapter, "world class scientist" means a
principal investigator or researcher who:
(1) holds an academic appointment;
(2) has a significant research portfolio and a record of
attracting external research support; and
(3) meets any other criteria established by the board.
Sec. 6. (a) The Indiana life sciences fund is established within the
state treasury to provide grants to postsecondary research
institutions to support the recruitment and retention of world class
scientists in Indiana for the following purposes:
(1) To strengthen Indiana's economy by focusing investment
in life sciences economic clusters that foster high skill, high
wage jobs.
(2) To target state investment in university based research
and development through various means, including:
(A)
matching funds for federal or private research grants
or gifts;
(B) support for endowed research faculty chairs at
postsecondary research institutions; and
(C) investment in research facilities, laboratories, and
specialized equipment that is conducive to the conducting
of the highest quality of scholarship and research in life
sciences.
(3) To stimulate the transfer of research and technology into
marketable products.
(4) To enter into a collaborative arrangement with the private
sector or another public or private educational institution.
(5) To encourage an environment of innovation and
cooperation among Indiana public or private educational
institutions, state agencies, and private businesses to promote
life sciences research and development activity.
(b) The fund consists of the following:
(1) Transfers from the lottery management agreement fund
under IC 4-30-22-5(2).
(2) Appropriations from the general assembly.
(3) Grants and gifts intended for deposit in the fund.
(4) Interest or other earnings on the fund.
(c) The corporation shall administer the fund. Subject to
appropriation by the general assembly, money in the fund may be
used to provide grants to postsecondary research institutions to
support the recruitment, retention, and ongoing financial support
of world class scientists.
(d) The treasurer of state shall invest the money in the fund not
currently needed to meet the obligations of the fund in the same
manner as other public money may be invested.
(e) The fund is considered a trust fund for purposes of
IC 4-9.1-1-7. Money may not be transferred, assigned, or otherwise
removed from the fund by the state board of finance, the budget
agency, or any other state agency.
(f) Money remaining in the fund at the end of a state fiscal year
does not revert to the state general fund.
(g) All expenditures from the fund are subject to appropriation
by the general assembly.
Sec. 7. (a) A postsecondary research institution may apply for
one (1) or more grants from the fund.
(b) An application requesting a grant from the fund must be
targeted to one (1) or more of the purposes listed in section 6 of this
chapter.
(c) A successful applicant for a grant from the fund must meet
the requirements of this section, be awarded a grant by the board,
and be approved by the budget agency under section 8 of this
chapter. An application for a grant from the fund must be made on
an application form prescribed by the board. An applicant shall
provide all information that the board finds necessary to make the
determinations required by this chapter.
(d) All applications for a grant from the fund must include the
following:
(1) A fully elaborated technical research plan that is
appropriate for review by outside experts as provided in this
chapter.
(2) A detailed financial analysis that includes the commitment
of resources by any other entities that will be involved in the
research project.
(3) A statement of the scientific and commercial potential of
the research project.
(4) A statement of the manner in which support from the fund
will lead to significantly increased funding from federal or
private sources or from private sector research partners.
(5) The profile and obligations of the world class scientist that
the applicant is seeking to recruit or retain.
(6) Any other information that the board considers
appropriate.
(e) An applicant for a grant from the fund may request that
certain information that is submitted by the applicant be kept
confidential. The board shall make a determination of
confidentiality as soon as is practicable. If the board determines
that the information should not be kept confidential, the applicant
may withdraw the application, and the board must return the
information before making it part of any public record.
Sec. 8. (a) The board has the following powers:
(1) To accept and analyze applications under this chapter.
(2) To award grants to applicants, subject to review by the
budget committee and approval by the budget agency.
(3) Subject to appropriation by the general assembly, to
contract with experts for advice and counsel.
(4) Subject to appropriation by the general assembly, to
employ staff to assist in carrying out this chapter, including
providing assistance to applicants who wish to apply for a
grant from the fund, analyzing proposals, working with
experts engaged by the board, and preparing reports and
recommendations for the board.
(b) The board shall consider the following factors in making
determinations concerning the award of a grant under this
chapter:
(1) The scientific merit of the proposed research.
(2) The predicted future success of governmental or private
funding for the proposed research.
(3) The ability of the world class scientist identified in the
proposal to generate matching funds and funds for additional
research.
(4) The extent to which the proposal evidences collaboration
among two (2) or more postsecondary research institutions,
as well as cost sharing and partnership support from the
private sector.
(5) The extent to which the proposal will affect the state's
ability to attract external financial support, create jobs,
attract and retain businesses, or expand technology transfer
opportunities in life sciences.
(6) The recommendations from the peer review panel that
reviews the proposal. The peer review panel shall be chosen
by and report to the board. In determining the composition
and duties of a peer review panel, the board shall consider the
National Institutes of Health and the National Science
Foundation peer review processes as models. The members of
the panel must have extensive experience in federal research
funding. A panel member may not have a relationship with
any private entity or academic institution in Indiana that
would constitute a conflict of interest for the panel member.
A grant from the fund may not be approved by the board
unless the grant proposal has received a positive
recommendation from a peer review panel described in this
subdivision.
(c) The board shall make final funding determinations, subject
to review by the budget committee and approval by the budget
agency, for applications for grants from the fund in a timely
manner that is responsive to recruiting world class scientists.
(d) As a condition of accepting a grant under this chapter, an
applicant shall enter into a memorandum of understanding with
the board and the budget agency regarding the expenditure of
grant funds.
(e) The board shall annually report to the legislative council, in
an electronic format under IC 5-14-6, information concerning the
amounts, recipients, and subject matters of grants awarded by the
board under this chapter.
Sec. 9. A grant awarded under this chapter may not be used to
conduct embryonic stem cell research.
SOURCE: IC 6-3-2-21; (07)SB0577.2.68. -->
SECTION 68. IC 6-3-2-21 IS ADDED TO THE INDIANA CODE
AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE
UPON PASSAGE]: Sec. 21. (a) As used in this section,
"scholarship" has the meaning set forth in IC 21-48-1-11.
(b) As used in this section, "recipient" has the meaning set forth
in IC 21-48-1-10.
(c) The amount of a recipient's obligation to repay a Hoosier
hope grant that is deferred or waived in a particular taxable year
under IC 21-48-7 is exempt from the adjusted gross income tax
imposed by IC 6-3-1 through IC 6-3-7 as income of the recipient.
SOURCE: IC 21-48; (07)SB0577.2.69. -->
SECTION 69. IC 21-48 IS ADDED TO THE INDIANA CODE AS
A
NEW ARTICLE TO READ AS FOLLOWS [EFFECTIVE UPON
PASSAGE]:
ARTICLE 48. HOOSIER HOPE SCHOLARSHIPS AND
CRITICAL NEEDS SCHOLARSHIPS
Chapter 1. Definitions
Sec. 1. The definitions in this chapter apply throughout this
article.
Sec. 2. "Academic year" has the meaning set forth in
IC 20-12-21-3(1).
Sec. 3. "Authority" means the Indiana finance authority
established under IC 4-4-11.
Sec. 4. "Commission" means the state student assistance
commission established by IC 20-12-21-4.
Sec. 5. "Eligible institution of higher learning" means:
(1) a state educational institution (as defined in
IC 20-12-0.5-1); or
(2) a private institution of higher education (as defined in
IC 20-12-63-3).
Sec. 6. "Full-time student" means an individual enrolled in an
eligible institution of higher learning for at least twelve (12)
semester credit hours in each enrollment period of an academic
year at a semester based institution, or an equivalent number of
hours at an institution using a different grading period.
Sec. 7. "Fund" means the Hoosier hope scholarship fund
established by IC 21-48-8-1.
Sec. 8. "Hoosier hope scholar" means an applicant who has been
accepted into the Hoosier hope scholars program.
Sec. 9. "Qualified employment" means full-time employment
within Indiana as determined under criteria developed by the
commission in cooperation with the department of state revenue
and the department of workforce development.
Sec. 10. "Recipient" means:
(1) a Hoosier hope scholar who is awarded a Hoosier hope
scholarship under IC 21-48-2; or
(2) a student who is awarded a:
(A) a critical needs nursing faculty scholarship under
IC 21-48-4;
(B)
a critical needs math and science teacher scholarship
under IC 21-48-5; or
(C) an additional critical employment needs scholarship
under IC 21-48-6.
Sec. 11. "Scholarship" means a scholarship that is:
(1) awarded under:
(A)
the Hoosier hope scholars program under IC 21-48-2;
or
(B) the critical employment needs program under
IC 21-48-3, including:
(i)
a critical needs nursing faculty scholarship under
IC 21-48-4;
(ii)
a critical needs math and science teacher scholarship
under IC 21-48-5; or
(iii)
an additional critical employment needs scholarship
under IC 21-48-6; and
(2) subject to repayment if the recipient does not meet the
requirements of this article, including:
(A) degree completion;
(B) postgraduation employment and residency; and
(C) other requirements specified by the commission when
awarding a scholarship.
Chapter 2. Hoosier Hope Scholars Program
Sec. 1. As used in this chapter, "applicant" means a student in
grade 12 who applies for acceptance into the Hoosier hope scholars
program.
Sec. 2. (a) The Hoosier hope scholars program is established.
(b) The commission shall administer the Hoosier hope scholars
program.
Sec. 3. (a) To be accepted into the Hoosier hope scholars
program, an applicant must:
(1) be a resident of Indiana as determined by the commission;
(2) be enrolled in grade 12 or its equivalent at:
(A)
a public or nonpublic accredited school in Indiana; or
(B) a nonaccredited nonpublic school in Indiana;
(3) be recommended by the student's school corporation of
legal settlement if the student is enrolled in a public high
school, or qualify as an outstanding scholar under criteria
established by the commission if the applicant is enrolled in a
nonpublic school;
(4) intend to pursue a course of study at an eligible institution
of higher learning that will lead to a baccalaureate or
associate degree;
(5) intend to reside in Indiana and maintain qualified
employment for at least two (2) consecutive years following
the attainment of an associate degree or at least four (4)
consecutive years following the attainment of a baccalaureate
degree;
(6) submit an application to the commission in the form and
manner required by the commission; and
(7) fulfill any other requirements established by the
commission.
(b) Each school corporation in Indiana may recommend one (1)
or more students for acceptance into the Hoosier hope scholars
program based on the student's level of academic achievement
under guidelines developed by the commission. The guidelines must
include SAT or ACT scores and cumulative high school grade point
averages, if available.
(c) This subsection applies to school corporations. The
commission shall determine the maximum number of students that
a school corporation may recommend in a year to receive an initial
scholarship based on the senior class enrollment in each high
school in the school corporation. The maximum number
determined by the commission must be at least the following:
(1) One (1) scholarship if the senior class enrollment in the
high school is not more than one hundred (100) students.
(2) Two (2) scholarships if the senior class enrollment in the
high school is more than one hundred (100) and not more than
two hundred (200) students.
(3) Three (3) scholarships if the senior class enrollment in the
high school is more than two hundred (200) and not more
than three hundred (300) students.
(4) Four (4) scholarships if the senior class enrollment in the
high school is more than three hundred (300) and not more
than four hundred (400) students.
(5) Five scholarships if the senior class enrollment in the high
school is more than four hundred (400) students.
(d) This subsection applies to nonpublic schools. The
commission shall establish guidelines for determining:
(1) whether an applicant enrolled in a nonpublic school is an
outstanding scholar, based on the applicant's level of
academic achievement; and
(2) the maximum number of scholarships to be awarded to
students attending each nonpublic school.
The guidelines must include SAT or ACT scores and cumulative
high school grade point averages, if available.
Sec. 4. An applicant is eligible to receive an initial scholarship
in an amount determined under section 6 of this chapter if the
applicant:
(1) enrolls as a full-time student in a baccalaureate or
associate degree program at an eligible institution of higher
learning in the academic year immediately following the
scholar's high school graduation; and
(2) agrees in writing on a form developed by the commission
to reside in Indiana and maintain qualified employment for at
least two (2) consecutive years following the attainment of an
associate degree or at least four (4) consecutive years
following the attainment of a baccalaureate degree.
Sec. 5. A scholarship must be renewed each academic year
under procedures developed by the commission. To qualify for a
scholarship renewal under this section, a recipient must:
(1) remain enrolled as a full-time student in a baccalaureate
or associate degree program at an eligible institution of higher
learning;
(2) maintain satisfactory progress, as determined by the
commission, toward a baccalaureate or associate degree; and
(3) maintain a cumulative grade point average of:
(A) at least 3.0 on a 4.0 grading scale; or
(B)
an equivalent average as determined by the recipient's
eligible institution of higher learning.
Sec. 6. (a) The commission shall determine the amount of each
scholarship awarded under this chapter.
(b) Subject to section 9 of this chapter, a Hoosier hope scholar
enrolled in an associate degree program at an eligible institution of
higher learning may be awarded a scholarship in an amount of up
to two thousand five hundred dollars ($2,500) per academic year
for not more than three (3) consecutive academic years. The total
amount awarded to an individual recipient under this subsection
for all academic years may not exceed five thousand dollars
($5,000).
(c) Subject to section 9 of this chapter, a Hoosier hope scholar
enrolled in a baccalaureate degree program at an eligible
institution of higher learning may be awarded a scholarship in an
amount of up to five thousand dollars ($5,000) per academic year
for not more than the normal time for completion of the degree, as
determined by the commission, plus one (1) year. The total amount
awarded to an individual recipient under this subsection for all
academic years may not exceed twenty thousand dollars ($20,000).
(d) Subject to section 9 of this chapter and subsection (g), a
Hoosier hope scholar who:
(1) completes or transfers from an associate degree program
at an eligible institution of higher learning; and
(2) enrolls in a baccalaureate degree program during the next
academic year at an eligible institution of higher learning;
may be awarded up to five thousand dollars ($5,000) per academic
year for not more than two (2) consecutive years that the scholar
is enrolled in the baccalaureate degree program and eligible to
renew a scholarship under this chapter.
(e) The amount of a Hoosier hope scholarship awarded to a
recipient in a year may not exceed the cost of attendance at the
eligible institution of higher learning where the recipient is
enrolled, minus the amount of any other scholarships that the
recipient has been awarded.
(f) The amount of any other state financial aid received by a
recipient may not be reduced because the recipient receives a
Hoosier hope scholarship.
(g) Subject to section 9 of this chapter, the total amount
awarded to a Hoosier hope scholar under this chapter may not
exceed twenty thousand dollars ($20,000).
(h) A scholarship awarded under this chapter shall be paid
directly by the commission to the eligible institution of higher
learning.
Sec. 7. A scholarship may be used by a recipient at any eligible
institution of higher learning to defray any qualified higher
education expenses (as defined in IC 21-9-2-19.5).
Sec. 8. The commission shall determine the number of
scholarships available in an academic year based on
appropriations made by the general assembly for this purpose.
Sec. 9. The commission may periodically adjust the maximum
amount of individual scholarships under this chapter after review
by the budget committee to reflect increased tuition costs at state
educational institutions.
Chapter 3. Critical Employment Needs Program
Sec. 1. (a) The critical employment needs program is
established.
(b) The commission shall administer the critical employment
needs program.
Sec. 2. The commission shall award the following scholarships
under the critical employment needs program:
(1) critical needs nursing faculty scholarships under
IC 21-48-4;
(2) critical needs math and science teacher scholarships under
IC 21-48-5; and
(3) additional critical employment needs scholarships under
IC 21-48-6.
Chapter 4. Critical Needs Nursing Faculty Scholarships
Sec. 1. The critical needs nursing faculty scholarship program
is established to encourage nursing instruction at eligible
institutions of higher learning.
Sec. 2. To initially qualify for a scholarship from the fund, a
student must:
(1) be enrolled in a master's or doctoral degree program at an
eligible institution of higher learning;
(2) be pursuing a course of study that would enable the
student, upon graduation, to teach nursing at an eligible
institution of higher learning; and
(3) agree in writing on a form developed by the commission to
reside in Indiana and teach nursing at an eligible institution
of higher learning for at least three (3) consecutive years
following the attainment of a master's or doctoral degree.
Sec. 3. A scholarship must be renewed each academic year
under procedures developed by the commission. To qualify for a
scholarship renewal under this section, a recipient must:
(1) comply with the criteria set forth in section 2 of this
chapter;
(2) maintain satisfactory progress, as determined by the
commission, toward a master's or a doctoral degree; and
(3) maintain a cumulative grade point average of:
(A) at least 3.0 on a 4.0 grading scale; or
(B)
an equivalent average as determined by the recipient's
eligible institution of higher learning.
Sec. 4. (a) The commission shall determine the amount of each
scholarship awarded under this chapter.
(b) A recipient may be awarded a scholarship in an amount of
up to five thousand dollars ($5,000) per academic year in not more
than the normal time for completion of the degree, as determined
by the commission, plus one (1) year. The total amount of the
scholarships awarded to an individual recipient under this
subsection for all academic years may not exceed ten thousand
dollars ($10,000).
(c) The amount of a scholarship awarded under this chapter
may not exceed the cost of attendance at the eligible institution of
higher learning where the recipient is enrolled, minus the amount
of any other scholarships that the recipient has been awarded.
(d) The amount of any other state financial aid received by a
recipient may not be reduced because the recipient is awarded a
scholarship under this chapter.
(e) A scholarship awarded under this chapter shall be paid
directly by the commission to the eligible institution of higher
learning.
Sec. 5. A scholarship may be used by a recipient at any eligible
institution of higher learning to defray any qualified higher
education expenses (as defined in IC 21-9-2-19.5).
Sec. 6. The commission shall determine the number of
scholarships available in an academic year based on
appropriations made by the general assembly for this purpose.
Sec. 7. This chapter expires July 1, 2012.
Chapter 5. Critical Needs Math and Science Teacher
Scholarships
Sec. 1. The critical needs math and science teacher scholarship
program is established.
Sec. 2. To initially qualify for a scholarship from the fund, a
student must:
(1) be enrolled as a full-time student pursuing a math or
science major in a baccalaureate degree program at an
eligible institution of higher learning; and
(2) agree in writing on a form developed by the commission to
reside in Indiana and teach math or science courses at a
school corporation in Indiana:
(A)
with a complexity index of 1.2 or higher as determined
by the department of education; or
(B)
that has a disproportionately high at-risk enrollment,
as determined by the department of education, if the
complexity index is not available or is no longer calculated;
for at least four (4) consecutive years following the attainment
of a baccalaureate degree.
Sec. 3. A scholarship must be renewed each academic year
under procedures developed by the commission. To qualify for a
scholarship renewal under this section, a recipient must:
(1) comply with the criteria set forth in section 2 of this
chapter;
(2) maintain satisfactory progress, as determined by the
commission, toward a baccalaureate degree; and
(3) maintain a cumulative grade point average of:
(A) at least 3.0 on a 4.0 grading scale; or
(B)
an equivalent average as determined by the recipient's
eligible institution of higher learning.
Sec. 4. (a) The commission shall determine the amount of each
scholarship awarded under this chapter.
(b) A recipient may be awarded a scholarship in an amount of
up to five thousand dollars ($5,000) per academic year in not more
than the normal time for completion of the degree, as determined
by the commission, plus one (1) year. The total amount of the
scholarships awarded to an individual recipient under this
subsection for all academic years may not exceed twenty thousand
dollars ($20,000).
(c) The amount of a scholarship awarded under this chapter
may not exceed the cost of attendance at the eligible institution of
higher learning where the recipient is enrolled, minus the amount
of any other scholarships that the recipient has been awarded.
(d) The amount of any other state financial aid received by a
recipient may not be reduced because the recipient is awarded a
scholarship under this chapter.
(e) A scholarship awarded under this chapter shall be paid
directly by the commission to the eligible institution of higher
learning.
Sec. 5. A scholarship may be used by a recipient at any eligible
institution of higher learning to defray any qualified higher
education expenses (as defined in IC 21-9-2-19.5).
Sec. 6. The commission shall determine the number of
scholarships available in an academic year based on
appropriations made by the general assembly for this purpose.
Sec. 7. This chapter expires July 1, 2012.
Chapter 6. Additional Critical Employment Needs Scholarships
Sec. 1. The additional critical employment needs scholarship
program is established.
Sec. 2. (a) The Indiana economic development corporation and
the department of workforce development shall determine if
scholarship programs in addition to the critical needs nursing
faculty scholarship program under IC 21-48-4 and the critical
needs math and science teacher scholarship program under
IC 21-48-5 should be established to increase employment in
occupations for which there is a critical need in Indiana.
(b) If the Indiana economic development corporation and the
department of workforce development determine that scholarships
should be awarded under this chapter, the Indiana economic
development corporation and the department of workforce
development shall submit the proposed scholarship program to the
commission and the budget committee for review. After review by
the budget committee and approval by the budget agency, the
commission may implement the proposed scholarship program.
Sec. 3. To initially qualify for a scholarship from the fund, a
student must:
(1) be enrolled as a full-time student in a baccalaureate degree
program at an eligible institution of higher learning;
(2) be pursuing a course of study that would enable the
student, upon graduation, to be employed in an occupation for
which the commission and the department have determined
there is a critical need in Indiana; and
(3) agree in writing on a form developed by the commission to
reside in Indiana and be employed in the occupation for at
least four (4) consecutive years following the attainment of a
baccalaureate degree.
Sec. 4. A scholarship must be renewed each academic year
under procedures developed by the commission. To qualify for a
scholarship renewal under this section, a recipient must:
(1) comply with the criteria set forth in section 3 of this
chapter;
(2) maintain satisfactory progress, as determined by the
commission, toward a baccalaureate degree; and
(3) maintain a cumulative grade point average of:
(A) at least 3.0 on a 4.0 grading scale; or
(B)
an equivalent average as determined by the recipient's
eligible institution of higher learning.
Sec. 5. (a) The commission shall determine the amount of each
scholarship awarded under this chapter.
(b) A recipient may be awarded a scholarship in an amount of
up to five thousand dollars ($5,000) per academic year in not more
than the normal time for completion of the degree, as determined
by the commission, plus one (1) year. The total amount of the
scholarships awarded to an individual recipient under this
subsection for all academic years may not exceed twenty thousand
dollars ($20,000).
(c) The amount of a scholarship awarded under this chapter
may not exceed the cost of attendance at the eligible institution of
higher learning where the recipient is enrolled, minus the amount
of any other scholarships that the recipient has been awarded.
(d) The amount of any other state financial aid received by a
recipient may not be reduced because the recipient is awarded a
scholarship under this chapter.
(e) A scholarship awarded under this chapter shall be paid
directly by the commission to the eligible institution of higher
learning.
Sec. 6. A scholarship may be used by a recipient at any eligible
institution of higher learning to defray any qualified higher
education expenses (as defined in IC 21-9-2-19.5).
Sec. 7. The commission shall determine the number of
scholarships available in an academic year based on
appropriations made by the general assembly for this purpose.
Sec. 8. This chapter expires July 1, 2012.
Chapter 7. Employment Requirements
Sec. 1. As used in this chapter, "qualified employment" means
the postgraduate employment requirement accepted by a recipient
in writing as a condition of receiving a scholarship under this
article.
Sec. 2. (a) Except as otherwise provided in this chapter, a
recipient shall repay the commission for the total amount of a
scholarship received by the recipient under this article if the
recipient does not:
(1) complete an associate degree, postgraduate degree, or
baccalaureate degree within the normal time for completion
of the degree, as determined by the commission, plus one (1)
year; and
(2) reside in Indiana upon graduation and maintain qualified
employment as required under the terms of the scholarship
awarded to the recipient.
(b) For purposes of this chapter, the repayment period begins
when a recipient:
(1) is no longer enrolled in a degree program at an eligible
institution of higher learning and has not attained a degree;
(2) has attained a degree but has not made a good faith effort
to comply with the recipient's written commitment to reside
in Indiana and maintain qualified employment; or
(3) has been granted a deferment from the repayment
obligation by the commission and has not made a good faith
effort to comply with the recipient's written commitment to
reside in Indiana and maintain qualified employment upon
the termination of the deferral period.
(c) Except as otherwise provided in this chapter, repayment
shall be made to the commission within ten (10) years after the
repayment period begins and shall follow a repayment schedule
established by the commission.
(d) A recipient who is required to repay a scholarship awarded
under this article shall be charged interest at a rate determined by
the commission. The interest rate charged under this section may
not exceed the maximum interest rate for federal financial aid in
effect at the time repayment is due.
(e) The commission may enter into contracts with one (1) or
more vendors to assist in collecting any repayment amounts owed
under this article.
(f) Amounts collected under this section shall be deposited in the
fund.
Sec. 3. (a) The commission may waive or defer repayment in the
event of disability, illness, or other extenuating circumstances, as
determined by the commission, that prevent the recipient from
attaining a degree in the time required under section 2 of this
chapter or fulfilling the postgraduate employment requirements
under this article.
(b) The commission shall grant a deferment from repayment to:
(1) a recipient who is assigned military duty;
(2) a recipient whose spouse is assigned military duty; and
(3) a recipient who has attained the degree for which the
scholarship was awarded but is pursuing post-graduate
studies at an Indiana institution of higher learning or an
out-of-state institution of higher learning.
(c) In determining the length of a deferment period granted
under this section, the commission shall consider each recipient's
individual circumstances and ability to comply with the recipient's
written commitment. Deferments shall be granted in twelve (12)
month increments but may not exceed a total of sixty (60)
consecutive months.
(d) A recipient who is seeking a waiver or deferment from the
repayment obligation under this section shall demonstrate
compliance with the postgraduation employment requirements by
submitting a letter from the recipient's employer to the
commission, along with any other documentation required by the
commission, under procedures developed by the commission. The
commission may request assistance from the department of state
revenue and the department of workforce development in order to
verify that the recipient has complied with the postgraduation
employment requirements.
Sec. 4. As provided in IC 6-3-2-21, the amount of a repayment
that is waived or deferred under this chapter is exempt from
taxation under IC 6-3-1 through IC 6-3-7.
Chapter 8. Hoosier Hope Scholarship Fund
Sec. 1. (a) The Hoosier hope scholarship fund is established
within the state treasury to provide scholarships to applicants who
qualify under this article.
(b) The fund consists of:
(1) Amounts transferred from the lottery management
agreement fund under IC 4-30-21.
(2) Appropriations from the general assembly.
(3) Grants and gifts intended for deposit in the fund.
(4) Interest or other earnings on the fund.
(5) Grant repayments or forfeitures under this article.
(c) The commission shall administer the fund. Subject to
appropriation by the general assembly, money in the fund may be
used to provide scholarships to applicants who qualify under this
article.
(d) The treasurer of state shall invest the money in the fund not
currently needed to meet the obligations of the fund in the same
manner as other public money may be invested.
(e) The fund is considered a trust fund for purposes of
IC 4-9.1-1-7. Money may not be transferred, assigned, or otherwise
removed from the fund by the state board of finance, the budget
agency, or any other state agency.
(f) Money remaining in the fund at the end of a state fiscal year
does not revert to the state general fund.
(g) All expenditures from the fund are subject to appropriation
by the general assembly.
SOURCE: IC 4-30-11-9; (07)SB0577.2.70. -->
SECTION 70. IC 4-30-11-9 IS REPEALED [EFFECTIVE UPON
PASSAGE].
SOURCE: ; (07)SB0577.2.71. -->
SECTION 71. [EFFECTIVE UPON PASSAGE] Notwithstanding
IC 4-30-8.5, as added by this act, an unlicensed vendor that:
(1) is awarded a major procurement contract by the
commission before the effective date of a management
agreement; and
(2) submits an application for a vendor's license;
may continue to furnish goods or services for the lottery for not
more than one hundred eighty (180) days after the effective date of
the management agreement.
SOURCE: ; (07)SB0577.2.72. -->
SECTION 72. [EFFECTIVE UPON PASSAGE] (a) The definitions
set forth in IC 4-30-21, as added by this act, apply to this
SECTION.
(b) If the state lottery commission enters into a management
agreement under IC 4-30-21, as added by this act, the Indiana
gaming commission shall adopt temporary rules to implement this
act in the manner provided for the adoption of emergency rules
under IC 4-22-2-37.1.
(c) A temporary rule adopted under this SECTION expires on
the earliest of the following:
(1) The date that another temporary rule adopted under this
SECTION supersedes or repeals the previously adopted
temporary rule.
(2) The date that a permanent rule adopted under IC 4-22-2
supersedes or repeals the temporary rule.
(3) The date specified in the temporary rule.
SOURCE: ; (07)SB0577.2.73. -->
SECTION 73. [EFFECTIVE UPON PASSAGE] The provisions of
this act are severable in the manner provided by IC 1-1-1-8(b).
SOURCE: ; (07)SB0577.2.74. -->
SECTION 74. [EFFECTIVE UPON PASSAGE]
(a) The definitions
set forth in IC 4-30-21 apply to this SECTION.
(b) Actions taken with respect to:
(1) the issuance of a request for qualifications; and
(2) the determination of responsible and eligible offerors;
for a management agreement before the effective date of this act
that would have been valid under IC 4-30-21, as added by this act,
are legalized and validated.
SOURCE: ; (07)SB0577.2.75. -->
SECTION 75. An emergency is declared for this act.