CHAPTER 3. CREATION, POWERS, AND DUTIES OF THE COMMISSION
IC 4-30-3
Chapter 3. Creation, Powers, and Duties of the Commission
IC 4-30-3-1
State lottery commission; creation; composition; authority; duties
Sec. 1. There is created a state lottery commission as a bodypolitic and corporate separate from the state. The commission iscomposed of five (5) members selected as provided in IC 4-30-4. Thecommission has the authority to sue and be sued in the name of thecommission and to adopt a commission seal and symbol. Thecommission shall supervise and administer the operation of theIndiana state lottery in accordance with this article.
As added by P.L.341-1989(ss), SEC.1.
IC 4-30-3-2
Investigations; powers
Sec. 2. For purposes of conducting an investigation or proceeding,the commission may administer oaths, take depositions, issuesubpoenas, and compel the attendance of witnesses and theproduction of books, papers, documents, and other evidence.
As added by P.L.341-1989(ss), SEC.1.
IC 4-30-3-3
Monthly and annual reports
Sec. 3. (a) The commission shall submit written monthly andannual reports to the governor disclosing the total lottery revenues,prize disbursements, and other expenses of the commission duringthe preceding month and year. In the annual report the commissionshall:
(1) describe the organizational structure of the commission;
(2) identify the divisions created by the director; and
(3) summarize the functions performed by each division.
(b) The commission shall submit the annual report to thegovernor, president pro tempore of the senate, the speaker of thehouse of representatives, the director of the budget agency, and, inan electronic format under IC 5-14-6, the executive director of thelegislative services agency no later than February 1 of each year.
As added by P.L.341-1989(ss), SEC.1. Amended by P.L.28-2004,SEC.50.
IC 4-30-3-4
Records of lottery transactions
Sec. 4. The commission shall maintain weekly or more frequentrecords of lottery transactions, including the distribution of tickets toretailers, revenue received, claims for prizes, prizes paid, and otherfinancial transactions of the commission.
As added by P.L.341-1989(ss), SEC.1.
IC 4-30-3-5
Commission studies Sec. 5. The commission shall make a continuing study of thefollowing:
(1) The lottery, in order to ascertain any amendments necessaryto this article or to rules adopted under this article that couldprevent any abuses in the administration of the lottery.
(2) The operation and administration of similar lottery laws inother states and of federal laws that may affect the lottery.
(3) The reaction of the public to existing and potential featuresof the lottery.
As added by P.L.341-1989(ss), SEC.1.
IC 4-30-3-6
Market research
Sec. 6. The commission shall conduct market research asnecessary or appropriate, which may include an analysis of thedemographic characteristics of the players of each lottery game andan analysis of advertising, promotion, public relations, incentives,and other aspects of communications.
As added by P.L.341-1989(ss), SEC.1.
IC 4-30-3-7
Adoption of rules governing establishment, implementation, andoperation of lottery
Sec. 7. The commission shall adopt rules under IC 4-22-2governing the establishment, implementation, and operation of thelottery, including the following:
(1) The type of lottery games to be conducted, except that:
(A) the name of an elected official may not appear on aticket or play slip of a lottery game, on a prize, or on aninstrument used for the payment of prizes, unless the prizeis in the form of a state warrant; and
(B) coins or currency may not be dispensed from anelectronic computer terminal or device used in a lotterygame.
(2) The sales price of tickets.
(3) The number and size of prizes.
(4) The method of selecting winning tickets. However, if alottery game involves a drawing, the drawing must be publicand witnessed by an independent certified public accountant.The equipment used in the drawing shall be inspected beforeand after the drawing.
(5) The manner of payment of prizes to holders of winningtickets.
(6) The frequency of drawings of winning tickets.
(7) The number and type of locations at which tickets may bepurchased.
(8) The method to be used in selling tickets.
(9) The manner and amount of compensation of retailers.
(10) The feasibility of using for a lottery game a terminal ordevice that may be operated solely by the player without the
assistance of a retailer.
(11) A system of internal audits.
(12) The establishment of a code of ethics for officers andemployees of the commission.
(13) Any other matters necessary or desirable for the efficientor economical operation of the lottery or for the convenience ofthe public.
As added by P.L.341-1989(ss), SEC.1.
IC 4-30-3-8
Promotion and advertising
Sec. 8. (a) The commission may promote and advertise the lottery.
(b) A promotion may refer to the total lottery prize, even thoughthe prize may be paid over a period of years.
(c) The commission may act as a retailer and conduct promotionsinvolving the dispensing of free lottery tickets.
(d) The director may authorize a sales incentive program foremployees of the commission for the purpose of increasing the salesvolume and distribution of lottery tickets.
As added by P.L.341-1989(ss), SEC.1.
IC 4-30-3-9
Adoption of emergency rules
Sec. 9. The commission may adopt emergency rules underIC 4-22-2-37.1.
As added by P.L.341-1989(ss), SEC.1. Amended by P.L.1-1990,SEC.42.
IC 4-30-3-10
Insurance
Sec. 10. The commission may purchase insurance.
As added by P.L.341-1989(ss), SEC.1.
IC 4-30-3-11
Ownership, sale, and leasing of real and personal property
Sec. 11. The commission is entitled to own, sell, and lease realand personal property as necessary to carry out its responsibilitiesunder this article.
As added by P.L.341-1989(ss), SEC.1.
IC 4-30-3-12
Copyrights, trademarks, and service marks
Sec. 12. The commission is entitled to own copyrights,trademarks, and service marks and to enforce its rights with respectto ownership.
As added by P.L.341-1989(ss), SEC.1.
IC 4-30-3-13
Employment of division directors and staff; restrictions
Sec. 13. The commission may employ division directors and other
staff necessary to carry out this article. However, the followingrestrictions apply to the commission and the director's authority toemploy individuals and to the duties of the individuals employed bythe commission:
(1) An individual may not be employed by the commission ifthe individual has been convicted of or entered a plea of guiltyor nolo contendere to a felony committed in the preceding ten(10) years, regardless of adjudication, unless the commissiondetermines that:
(A) the individual has been pardoned or the individual's civilrights have been restored; or
(B) subsequent to the individual's conviction or entry of aplea the individual engaged in the kind of law abidingbehavior and good citizenship that would reflect well uponthe integrity of the lottery.
(2) The director, a member, or an employee of the commissionhaving decision making authority may not participate in adecision involving a vendor or retailer with whom the director,member, or employee has a financial interest. An employee maynot participate in a decision involving a vendor or retailer withwhom the employee has discussed employment opportunitieswithout the approval of the director or, if the individual is thedirector or a member of the commission, without the approvalof the governor. An employee of the commission shall notifythe director of any employment opportunities discussed or, ifthe individual is the director or a member of the commission,the director or member shall notify the governor. A violation ofthis subdivision is a Class A infraction.
(3) The director, a member, or an employee of the commissionwho terminates employment with the commission may notrepresent a vendor or retailer before the commission regardinga specific matter that the director, member or employee wasinvolved in while serving as a director or member of or whileemployed by the commission for one (1) year following the datethe director or member left the commission or the date ofcessation of employment with the commission. A violation ofthis subdivision is a Class A infraction.
As added by P.L.341-1989(ss), SEC.1.
IC 4-30-3-14
Personnel program
Sec. 14. The commission shall establish and maintain a personnelprogram for its employees. Employees of the commission serve at thepleasure of the director and are subject to suspension, dismissal,reduction in pay, demotion, transfer, or other personnel action at thediscretion of the director. Employees of the commission are not meritsystem employees under IC 4-15-2. Except as provided in IC 4-30-6,employees may not be hired or fired on the basis of politicalaffiliation.
As added by P.L.341-1989(ss), SEC.1.
IC 4-30-3-15
Fees for applications for contract as vendor or retailer
Sec. 15. The commission may charge fees to persons applying fora contract as a vendor or retailer. The fees must be reasonablycalculated to cover the costs of investigations and other activitiesrelated to the processing of the application.
As added by P.L.341-1989(ss), SEC.1.
IC 4-30-3-16
Contracts for purchase, lease, or lease-purchase of goods andservices
Sec. 16. The commission may enter into contracts for thepurchase, lease, or lease-purchase of goods and services necessaryfor the operation and promotion of the lottery, including assistanceprovided by a governmental agency. The commission may requireseparate bids or proposals for each of the following supplies orservices, if the supplies or services are provided under contract withthe commission under this section or under IC 4-30-8:
(1) Management consultation services.
(2) Instant lottery ticket services and supplies.
(3) On-line services and supplies.
As added by P.L.341-1989(ss), SEC.1.
IC 4-30-3-17
Contracts with retailers to provide tickets to public
Sec. 17. The commission may enter into contracts with retailersunder this article to provide adequate and convenient availability oftickets to the public for each game.
As added by P.L.341-1989(ss), SEC.1.
IC 4-30-3-18
Multiple jurisdictional lotteries
Sec. 18. (a) The commission may enter into agreements with otherjurisdictions for the operation and promotion of a multiplejurisdictional lottery if these agreements are in the best interest of thelottery.
(b) Before the commission enters into an agreement with ajurisdiction other than a state for a lottery game that originates andis operated under foreign law, the commission must adopt rulesunder IC 4-22-2 governing the establishment, implementation, andoperation of the lottery game. The rules adopted under thissubsection must include the information described in section 7 of thischapter. The commission may not adopt emergency rules to meet therequirements of this subsection.
As added by P.L.341-1989(ss), SEC.1. Amended by P.L.34-2002,SEC.1.
IC 4-30-3-19
Contracts for vendor and auditing services
Sec. 19. (a) The definitions set forth in IC 3-5-2 apply to this
section.
(b) This subsection applies to contributions made after March 15,1989, and before March 29, 1996. The commission or director maynot enter into a contract with a person to serve as a vendor for amajor procurement or to provide auditing services to the commissionif the person has made a contribution to a candidate for a state office,within the three (3) years preceding the award of the contract. Aperson that enters into a contract with the commission as a vendor fora major procurement or to provide auditing services may not makea contribution to such a candidate during the three (3) yearsfollowing the last award or renewal of the contract. A person isconsidered to have made a contribution if a contribution is made by:
(1) the person;
(2) an officer of the person; or
(3) a political action committee (as defined in IC 3-5-2-37) ofthe person.
(c) A person who knowingly or intentionally violates this sectioncommits a Class D felony.
As added by P.L.341-1989(ss), SEC.1. Amended by P.L.32-1990,SEC.2; P.L.3-1995, SEC.139; P.L.4-1996, SEC.89.
IC 4-30-3-19.5
Contributions to candidates or committees; state offices
Sec. 19.5. (a) This section applies only to contributions made afterMarch 28, 1996.
(b) The definitions set forth in IC 3-5-2 apply to this section.
(c) As used in this section, "candidate" refers only to a candidatefor a state office.
(d) As used in this section, "committee" refers to any of thefollowing:
(1) A candidate's committee.
(2) A regular party committee.
(3) A committee organized by a legislative caucus of the houseof the general assembly.
(4) A committee organized by a legislative caucus of the senateof the general assembly.
(e) As used in this section, "contract" refers only to a contractwith the commission or the director for any of the following:
(1) A major procurement.
(2) Auditing services to the commission.
(f) As used in this section, "contractor" means a person who hasa contract with the commission or the director.
(g) As used in this section, "officer" refers only to either of thefollowing:
(1) An individual listed as an officer of a corporation in thecorporation's most recent annual report.
(2) An individual who is a successor to an individual describedin subdivision (1).
(h) A person is considered to have made a contribution under thissection if a contribution is made by any of the following: (1) The person.
(2) An officer of the person.
(3) A political action committee of the person.
(i) A person may not enter into a contract if the person has madea contribution to a candidate or a committee within the three (3)years preceding the award of the contract.
(j) A contractor, an officer of a contractor, or a political actioncommittee of a contractor may not make a contribution to a candidateor a committee while the contract is in effect and during the three (3)years following the final expiration or termination of the contract.
(k) A person who knowingly or intentionally violates this sectioncommits a Class D felony.
As added by P.L.4-1996, SEC.90.
IC 4-30-3-19.7
Contributions to candidates or committees; legislative or localoffices
Sec. 19.7. (a) This section applies only to contributions made afterMarch 28, 1996.
(b) The definitions set forth in IC 3-5-2 apply to this section.
(c) As used in this section, "candidate" refers only to thefollowing:
(1) A candidate for a legislative office.
(2) A candidate for a local office.
(d) As used in this section, "committee" refers to any of thefollowing:
(1) A candidate's committee.
(2) A regular party committee.
(3) A committee organized by a legislative caucus of the houseof the general assembly.
(4) A committee organized by a legislative caucus of the senateof the general assembly.
(e) As used in this section, "contract" refers only to a contractwith the commission or the director for any of the following:
(1) The printing of tickets to be used in a lottery game.
(2) Consultation services for operation of the lottery.
(3) Any goods and services involving any of the following:
(A) Equipment for the official recording for lottery gameplay purposes of a player's selection in lottery gamesinvolving player selections.
(B) The drawing, determination, or generation of winners inlottery games.
(C) The security services required under this article.
(f) As used in this section, "contractor" refers to a person who hasa contract with the commission or the director.
(g) As used in this section, "officer" refers only to either of thefollowing:
(1) An individual listed as an officer of a corporation in thecorporation's most recent annual report.
(2) An individual who is a successor to an individual described
in subdivision (1).
(h) A person is considered to have made a contribution under thissection if a contribution is made by any of the following:
(1) The person.
(2) An officer of the person.
(3) A political action committee of the person.
(i) A person may not enter into a contract if the person has madea contribution to a candidate or a committee within the three (3)years preceding the award of the contract.
(j) A contractor, an officer of a contractor, or a political actioncommittee of a contractor may not make a contribution to a candidateor a committee while the contract is in effect and during the three (3)years following the final expiration or termination of the contract.
(k) A person who knowingly or intentionally violates this sectioncommits a Class D felony.
As added by P.L.4-1996, SEC.91.