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Senate Bill 0577


Senate Bill 0577

ARCHIVE (2007)

Latest Information

 

DIGEST OF SB577 (Updated February 27, 2007 12:29 pm - DI 84)


Lottery. Authorizes the state lottery commission to enter into a management agreement with a private entity for the operation of the lottery. Provides that the management agreement must establish a benchmark amount of at least $1,000,000,000 and must require the manager to make an initial payment to the Indiana finance authority on the effective date of the management agreement in an amount that exceeds the benchmark amount. Requires this initial payment to be deposited in the management agreement fund. Provides that within 30 days after a management agreement has been executed, the Indiana finance authority shall make the following transfers (after deducting expenses of the authority related to execution of the management agreement): (1) To the Hoosier hope scholarship fund, the lesser of $400,000,000 or 40% of the money. (2) To the Indiana life sciences fund, the lesser of $600,000,000 or 60% of the money. (3) To the pension relief fund, the remainder, if any, of the money after making the transfers to the Hoosier hope scholarship fund and the Indiana life sciences fund. Provides that if the amount that would be transferred to the pension relief fund exceeds $300,000,000, the excess is transferred to the state general fund. Provides that the management agreement must require the manager to pay a royalty in the amount of $50,000,000 to the state lottery commission four times each year. Requires these payments to be deposited in the administrative trust fund of the lottery. Specifies that the management agreement may require the manager to pay an additional royalty payment each year if the manager's gross revenues from the sale of lottery tickets in a year exceed the commission's gross revenues from the sale of lottery tickets in the twelve months preceding the date of execution of the management agreement. Requires any payments received under such a provision to be deposited in the pension relief fund. Specifies that if the manager fails to make a payment by the due date of the payment, the management agreement is terminated. Specifies the provisions that must be included in a management agreement. Provides that 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 Indiana gaming commission. Prohibits a manager or person who has an interest in a manager from making a contribution to a candidate or certain committees during specified periods. Provides that on the effective date of the first management agreement, powers, duties, and liabilities of the state lottery commission are transferred to the Indiana gaming commission. Provides that if a management agreement is in effect, the Indiana gaming commission shall oversee the operation of the lottery and the state lottery commission shall serve as a resource group for the Indiana gaming commission. Provides that if a management agreement is in effect, the manager shall implement a security program as provided in the management agreement, and the Indiana gaming commission shall engage an independent firm experienced in security procedures to conduct a comprehensive study and evaluation of all aspects of security in the manager's lottery operations. Prohibits a person from selling, leasing, or providing certain equipment, supplies, or services to a manager unless the person holds a vendor's license. Provides that the state lottery commission may not execute an initial management agreement after December 31, 2007. Requires the management agreement to include certain provisions to ensure that the manager does not earn excess revenue under the management agreement. Specifies that the management agreement must require that, beginning with the second full state fiscal year after the execution of the management agreement, the manager must make payments to the state lottery commission if the manager's revenue growth for a state fiscal year exceeds a baseline growth percentage equal to the average annual growth in revenue from the lottery during the last five state fiscal years preceding July 1, 2006. Provides that any such payments by the manager are deposited in an excess payments account established by the state lottery commission. Specifies that the management agreement must require the state lottery commission to make payments from the excess payments account (if there is a positive balance in the account) when the baseline growth percentage is greater than the manager's revenue growth for a state fiscal year. Provides that if at the expiration or termination of the management agreement there is money remaining in the excess payments account, the state lottery commission shall transfer that money to the administrative trust fund. Provides that (in addition to the prohibition against certain types of games) the management agreement may not authorize a manager to operate a game that is not a game (or variation of a game) that the state lottery commission operated before the management agreement is executed or that the state lottery commission is operating on the date the management agreement is executed. Provides that advertising of the lottery must be approved by the state lottery commission. Requires the management agreement to include guidelines related to advertising and promoting of the lottery by the manager Establishes the Indiana life sciences fund to provide grants to postsecondary research institutions to support the recruitment and retention of world class scientists in Indiana. Specifies the criteria for awarding grants from the Indiana life sciences fund. Provides that a grant may not be made from the Indiana 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.
    Current Status:
     In Committee - 2nd House
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