CHAPTER 539

SENATE BILL NO. 819

AN ACT TO AMEND TITLE 29, DELAWARE CODE, RELATING TO THE STATE LOTTERY AND THE DEPARTMENT OF FINANCE.

Be it enacted by the General Assembly of the State of Delaware:

Section 1. Amend Section 4801, Chapter 48, Title 29, Delaware Code, by striking the phrase "shall serve at the pleasure of the Governor" as it appears therein and substituting the phrase "shall be appointed by the Secretary of Finance with the written approval of the Governor".

Section 2. Amend Section 4802, Title 29, Delaware Code, by deleting the phrase "executive office of the Governor" in the first sentence thereof and substitute in lieu thereof the phrase "Department of Finance."

Section 3. Amend Section 4804, Title 29, Delaware Code, by striking the Section in its entirety and substituting in lieu thereof the following:

"Section 4804. Director - Appointment, qualifications and salary.

(a) The State Lottery Office shall be administered and supervised by a Director who shall be a person qualified by business experiences and training to supervise the operation of a public gaming system in a manner which will produce the greatest income for the State. The Director shall be appointed by the Secretary of Finance with the written approval of the Governor.

(b) The qualifications of the person appointed as Director shall be as follows:

(1) Five or more years experience as the head of an autonomous business, division, or independent segment of a jarge company or governmental agency having to do with public gaming. The position or positions held should have broad authority and carry major responsibility; except that experience in a public utility or other monopolistic enterprise does not meet this requirement. There shall be positive evidence that the company, division or independent segment of a large company or government agency was well managed during the tenure of the prospective Director.

(2) Shall be in good health, shall have a good reputation, particularly as a person of honesty and integrity, and shall be able to pass a thorough background investigation prior to appointment.

(3) He shall not hold political office in the government of the State either by election or appointment while serving as Director, nor shall anyone who holds elected or appointed office in the government of the State be appointed as Director until he has completed serving the full term to which he was elected. or appointed. The Director shall be a citizen of the United States, and must become a resident of the State within 90 days of appointment.

(c) The Director shall serve on a full-time basis and shall not be engaged in any other profession or occupation. The Director shall receive such salary as provided by law."

Section 4. Amend subsection (b), Section 4810, Chapter 48, Title 29, Delaware Code, by striking same in its entirety and inserting in lieu thereof the following:

"(b) No ticket shall be purchased by and no prizes received by or awarded to any officers or employees of the State Lottery Office or the Division of Central Data Processing or any member of their immediate households. Any person convicted of violating this section shall forfeit any prize money so obtained and shall be sentenced to not less than 1 year in jail and pay a fine of no less then $5,000."

Section 5. Amend Section 4812, Chapter 48, Title 29, Delaware Code, by striking said section in its entirety and substituting in lieu thereof the following:

"Section 4812. Disposition of unclaimed prize money.

Unclaimed prize money for the prize on a winning ticket shall be retained by the Director for the person entitled thereto for one year after the drawing or event in which the prize was won. If no claim is made for said money within such year, the prize money shall be reverted to the State Lottery Fund for the specific purpose of awarding additional prizes in order to comply with Section 4815 (a) of this Act."

Section 6. Amend subsection (a), Section 4815, Chapter 48, Title 29, Delaware Code, by striking said subsection in its entirety and substituting in lieu thereof the following:

"(a) All moneys received from the sale of lottery tickets shall be accounted for to the State Treasurer and all net moneys shall be placed into a special account known as the State Lottery Fund. From the Fund, the Director shall first pay for the operation and administration of the lottery as authorized in this Chapter and thereafter shall pay as prizes not less than 45 percent of the total amount of tickets which have been sold, which percentage shall include prizes already awarded. The total of payments for operations and administration of the lottery shall not exceed 20% of the gross amount received from the sale of tickets. The remaining moneys shall accumulate in the State lottery Fund and on a monthly basis, or more frequently if required by the Director, the accumulation shall be placed into the General Fund of the State. In the event that the percentage allotted for operations generates a surplus, said surplus shall be allowed to accumulate to an amount not to exceed $250,000.00. On a quarterly basis the Director shall report the Secretary of Finance any surplus in excess of $250,000.00, and remit to the General Fund of the State the entire amount of those surplus funds in excess of $250,000.00".

Section 7. Amend subsection (21), Section 5903, Chapter 59, Title 29, Delaware Code, by striking said subsection in its entirety.

Section 8. Amend subsection (2), Section 8303, Chapter 83, Title 29, Delaware Code, by striking paragraph (c) as it appears therein and substituting a new paragraph (c) to read as follows:

"(c) A Director of the State Lottery Office who shall be known as the lottery Director and who shall meet the qualifications as set forth in Section 4804, Chapter 48, Title 29, Delaware Code; ".

Section 9. Amend Section 8309, Chapter 83, Title 29, Delaware Code, by deleting subsection (4) in its entirety and substituting in lieu thereof the following:

"(4) State Lottery Director;". Approved July 7, 1976