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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
|||| 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
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