2003 Legislation
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HOUSE BILL NO. 388 – State lottery/procurement contracts

HOUSE BILL NO. 388

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View Statement of Purpose / Fiscal Impact



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Daily Data Tracking History



H0388........................................................by WAYS AND MEANS
STATE LOTTERY - Amends existing law to revise the process for the director of
the State Lottery to enter into major procurement contracts.
                                                                        
03/24    House intro - 1st rdg - to printing
03/25    Rpt prt - to St Aff
03/27    Rpt out - rec d/p - to 2nd rdg
03/28    2nd rdg - to 3rd rdg
04/01    3rd rdg - PASSED - 64-4-2
      AYES -- Andersen, Barraclough, Barrett, Bauer, Bedke, Bell, Bieter,
      Black, Block, Boe, Bolz, Bradford, Campbell, Cannon, Collins, Deal,
      Denney, Douglas, Eberle, Edmunson, Ellsworth, Eskridge, Field(18),
      Gagner, Garrett, Harwood, Henbest, Jaquet, Jones, Kellogg, Kulczyk,
      Lake, Langford, Langhorst, Martinez, McGeachin, McKague, Meyer, Miller,
      Mitchell, Moyle, Naccarato, Nielsen, Raybould, Ridinger, Ring, Ringo,
      Roberts, Robison, Rydalch, Sayler, Schaefer, Shepherd, Shirley, Skippen,
      Smith(24), Smylie, Snodgrass, Stevenson, Tilman, Trail, Wills, Wood, Mr.
      Speaker
      NAYS -- Clark, Cuddy, Sali, Smith(30)
      Absent and excused -- Crow, Field(23)
    Floor Sponsor - Ellsworth
    Title apvd - to Senate
04/02    Senate intro - 1st rdg - to St Aff

Bill Text


                                                                        
                                                                        
  ||||              LEGISLATURE OF THE STATE OF IDAHO             ||||
 Fifty-seventh Legislature                 First Regular Session - 2003
                                                                        
                                                                        
                              IN THE HOUSE OF REPRESENTATIVES
                                                                        
                                     HOUSE BILL NO. 388
                                                                        
                                BY WAYS AND MEANS COMMITTEE
                                                                        
  1                                        AN ACT
  2    RELATING TO THE STATE LOTTERY; AMENDING SECTION 67-7404, IDAHO CODE, TO DEFINE
  3        THE TERM "RESPONSIBLE SUPPLIER"; AMENDING SECTION 67-7420, IDAHO CODE,  TO
  4        REVISE  THE  PROCESS  FOR  THE DIRECTOR OF THE STATE LOTTERY ENTERING INTO
  5        MAJOR PROCUREMENT CONTRACTS; AND DECLARING AN EMERGENCY.
                                                                        
  6    Be It Enacted by the Legislature of the State of Idaho:
                                                                        
  7        SECTION 1.  That Section 67-7404, Idaho Code, be, and the same  is  hereby
  8    amended to read as follows:
                                                                        
  9        67-7404.  DEFINITIONS. As used in this chapter:
 10        (1)  "Administrative  costs"  means  personnel  costs, capital outlay, and
 11    reasonable expenses incurred by other state agencies to  effectuate  the  pur-
 12    poses of this chapter.
 13        (2)  "Commission" means the Idaho state lottery commission.
 14        (3)  "Director" means the director of the lottery.
 15        (4)  "Expenses"  means all costs of doing business including, but not lim-
 16    ited to, prizes, commissions and other compensation paid to retailers,  adver-
 17    tising  and  marketing  costs,  personnel  costs,  capital  outlay, reasonable
 18    expenses incurred by other state agencies to effectuate the purposes  of  this
 19    chapter,  depreciation  of  property and equipment, and other operating costs,
 20    all of which are to be recorded on the accrual basis of accounting  in  accor-
 21    dance with generally accepted accounting principles.
 22        (5)  "Lottery"  or "state lottery" means the state lottery established and
 23    operated pursuant to this chapter.
 24        (6)  "Lottery contractor" means a person with whom the  lottery  has  con-
 25    tracted  for  the  purposes of providing goods and services for the state lot-
 26    tery.
 27        (7)  "Lottery game retailer" or "retailer" means a person  with  whom  the
 28    lottery has contracted for the purpose of selling tickets or shares in lottery
 29    games to the public.
 30        (8)  "Lottery  revenue"  means  revenue  derived  from the sale of lottery
 31    tickets and shares. Such revenues shall be recorded on the  accrual  basis  of
 32    accounting in accordance with generally accepted accounting principles.
 33        (9)  "Lottery vendor" or "vendor" means any person who submits a bid, pro-
 34    posal or offer as part of a major procurement for goods or services as defined
 35    in subsection (11) of this section.
 36        (10) "Low,  medium and high tier claims" means the dollar amount of prizes
 37    awarded in accordance with rules of the state lottery.
 38        (11) "Major procurement" means any contract with a vendor  supplying  lot-
 39    tery  tickets or shares, data processing systems utilized to track, sell, dis-
 40    tribute or validate lottery tickets or shares, any goods or services involving
 41    the determination or generation of winners in any lottery game or any auditing
 42    services.
 43        (12) "Net income" means  lottery  revenue  and  nonlottery  revenue,  less
                                                                        
                                           2
                                                                        
  1    expenses, as defined in this chapter.
  2        (13) "Person"  shall be construed to mean and include an individual, asso-
  3    ciation, corporation, club, trust, estate, society, company, joint stock  com-
  4    pany,  receiver,  trustee,  assignee,  referee or any other person acting in a
  5    fiduciary or representative capacity, whether appointed by a court  or  other-
  6    wise,  and any combination of individuals. "Person" shall also be construed to
  7    mean and include departments, commissions, agencies and  instrumentalities  of
  8    the  state  of  Idaho,  including  counties and municipalities and agencies or
  9    instrumentalities thereof.
 10        (14) "Redemption value" means the sum  total  of  all  winnings  upon  the
 11    ticket presented for payment.
 12        (15) "Responsible  supplier"  means  any  person  who, after review by the
 13    director of the information provided pursuant to section 67-7421, Idaho  Code,
 14    is found to possess the financial responsibility, security, integrity, techni-
 15    cal ability, competence, quality of product, experience and ability to provide
 16    timely  performance  in such a way as to promote and ensure security, honesty,
 17    fairness and integrity in the operation and administration of the lottery.
 18        (16) "Share" means any intangible evidence of participation in a game con-
 19    ducted by the state lottery.
 20        (167) "Ticket" means any tangible evidence issued by the lottery  to  pro-
 21    vide participation in a game conducted by the state lottery.
 22        (178) "Value" means any ticket shall be taken at face value.
                                                                        
 23        SECTION  2.  That  Section 67-7420, Idaho Code, be, and the same is hereby
 24    amended to read as follows:
                                                                        
 25        67-7420.  CONTRACTS FOR MAJOR PROCUREMENTS. Subject to the approval of the
 26    commission, the director may shall solicit bids and may enter into major  pro-
 27    curement  contracts.  Any such contract may be awarded to a technically compe-
 28    tent bidder, taking into account the lowest bid, secondary cost  benefits  and
 29    the  resulting  projected  net income which would accrue to the benefit of the
 30    state over the term of the contract.
 31        In all awards of contracts, the commission shall take  particular  account
 32    of the sensitive and responsible nature of the state lottery and the paramount
 33    consideration  of  security  and  integrity  In all procurement decisions, the
 34    director shall utilize an open process and shall award contracts to  the  best
 35    responsible  supplier  submitting  the lowest and best proposal that maximizes
 36    the benefits to the state in relation to the areas  of  security,  competence,
 37    experience and timely performance.  In all procurement decisions, the director
 38    shall  take  into account the particularly sensitive nature of the Idaho state
 39    lottery and shall act to promote and ensure security,  honesty,  fairness  and
 40    integrity  in  the operation and administration of the lottery with the objec-
 41    tive of raising revenues for the benefit of the public.
                                                                        
 42        SECTION 3.  An emergency existing  therefor,  which  emergency  is  hereby
 43    declared to exist, this act shall be in full force and effect on and after its
 44    passage and approval.

Statement of Purpose / Fiscal Impact



                       STATEMENT OF PURPOSE
                             RS 13224
This legislation will make it necessary that lottery purchase
agreements go through a competitive bidding process.
                          FISCAL IMPACT
No fiscal impact to the General Fund.


Contact
Name:     Speaker Bruce Newcomb
          Rep. Lawerence Denney
          Rep. Mike Moyle
          Rep. Julie Ellsworth 
Phone:    (208) 332-1000


STATEMENT OF PURPOSE/FISCAL NOTE                      H 388