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 body
politic and corporate separate from the state. The commission is
composed of five (5) members selected as provided in IC 4-30-4. The
commission has the authority to sue and be sued in the name of the
commission and to adopt a commission seal and symbol. The
commission shall supervise and administer the operation of the
Indiana 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, issue
subpoenas, and compel the attendance of witnesses and the
production 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 and
annual reports to the governor disclosing the total lottery revenues,
prize disbursements, and other expenses of the commission during
the preceding month and year. In the annual report the commission
shall:
(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 the
governor, president pro tempore of the senate, the speaker of the
house of representatives, the director of the budget agency, and, in
an electronic format under IC 5-14-6, the executive director of the
legislative 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 frequent
records of lottery transactions, including the distribution of tickets to
retailers, revenue received, claims for prizes, prizes paid, and other
financial 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 the
following:
(1) The lottery, in order to ascertain any amendments necessary
to this article or to rules adopted under this article that could
prevent any abuses in the administration of the lottery.
(2) The operation and administration of similar lottery laws in
other states and of federal laws that may affect the lottery.
(3) The reaction of the public to existing and potential features
of 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 as
necessary or appropriate, which may include an analysis of the
demographic characteristics of the players of each lottery game and
an 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, and
operation of lottery
Sec. 7. The commission shall adopt rules under IC 4-22-2
governing the establishment, implementation, and operation of the
lottery, 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 a
ticket or play slip of a lottery game, on a prize, or on an
instrument used for the payment of prizes, unless the prize
is in the form of a state warrant; and
(B) coins or currency may not be dispensed from an
electronic computer terminal or device used in a lottery
game.
(2) The sales price of tickets.
(3) The number and size of prizes.
(4) The method of selecting winning tickets. However, if a
lottery game involves a drawing, the drawing must be public
and witnessed by an independent certified public accountant.
The equipment used in the drawing shall be inspected before
and after the drawing.
(5) The manner of payment of prizes to holders of winning
tickets.
(6) The frequency of drawings of winning tickets.
(7) The number and type of locations at which tickets may be
purchased.
(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 or
device 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 and
employees of the commission.
(13) Any other matters necessary or desirable for the efficient
or economical operation of the lottery or for the convenience of
the 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 though
the prize may be paid over a period of years.
(c) The commission may act as a retailer and conduct promotions
involving the dispensing of free lottery tickets.
(d) The director may authorize a sales incentive program for
employees of the commission for the purpose of increasing the sales
volume 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 under
IC 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 real
and personal property as necessary to carry out its responsibilities
under 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 respect
to 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 following
restrictions apply to the commission and the director's authority to
employ individuals and to the duties of the individuals employed by
the commission:
(1) An individual may not be employed by the commission if
the individual has been convicted of or entered a plea of guilty
or nolo contendere to a felony committed in the preceding ten
(10) years, regardless of adjudication, unless the commission
determines that:
(A) the individual has been pardoned or the individual's civil
rights have been restored; or
(B) subsequent to the individual's conviction or entry of a
plea the individual engaged in the kind of law abiding
behavior and good citizenship that would reflect well upon
the integrity of the lottery.
(2) The director, a member, or an employee of the commission
having decision making authority may not participate in a
decision involving a vendor or retailer with whom the director,
member, or employee has a financial interest. An employee may
not participate in a decision involving a vendor or retailer with
whom the employee has discussed employment opportunities
without the approval of the director or, if the individual is the
director or a member of the commission, without the approval
of the governor. An employee of the commission shall notify
the director of any employment opportunities discussed or, if
the individual is the director or a member of the commission,
the director or member shall notify the governor. A violation of
this subdivision is a Class A infraction.
(3) The director, a member, or an employee of the commission
who terminates employment with the commission may not
represent a vendor or retailer before the commission regarding
a specific matter that the director, member or employee was
involved in while serving as a director or member of or while
employed by the commission for one (1) year following the date
the director or member left the commission or the date of
cessation of employment with the commission. A violation of
this 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 personnel
program for its employees. Employees of the commission serve at the
pleasure of the director and are subject to suspension, dismissal,
reduction in pay, demotion, transfer, or other personnel action at the
discretion of the director. Employees of the commission are not merit
system 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 political
affiliation.
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 for
a contract as a vendor or retailer. The fees must be reasonably
calculated to cover the costs of investigations and other activities
related 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 and
services
Sec. 16. The commission may enter into contracts for the
purchase, lease, or lease-purchase of goods and services necessary
for the operation and promotion of the lottery, including assistance
provided by a governmental agency. The commission may require
separate bids or proposals for each of the following supplies or
services, if the supplies or services are provided under contract with
the 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 retailers
under this article to provide adequate and convenient availability of
tickets 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 other
jurisdictions for the operation and promotion of a multiple
jurisdictional lottery if these agreements are in the best interest of the
lottery.
(b) Before the commission enters into an agreement with a
jurisdiction other than a state for a lottery game that originates and
is operated under foreign law, the commission must adopt rules
under IC 4-22-2 governing the establishment, implementation, and
operation of the lottery game. The rules adopted under this
subsection must include the information described in section 7 of this
chapter. The commission may not adopt emergency rules to meet the
requirements 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 may
not enter into a contract with a person to serve as a vendor for a
major procurement or to provide auditing services to the commission
if the person has made a contribution to a candidate for a state office,
within the three (3) years preceding the award of the contract. A
person that enters into a contract with the commission as a vendor for
a major procurement or to provide auditing services may not make
a contribution to such a candidate during the three (3) years
following the last award or renewal of the contract. A person is
considered 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) of
the person.
(c) A person who knowingly or intentionally violates this section
commits 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 after
March 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 candidate
for a state office.
(d) As used in this section, "committee" refers to any of the
following:
(1) A candidate's committee.
(2) A regular party committee.
(3) A committee organized by a legislative caucus of the house
of the general assembly.
(4) A committee organized by a legislative caucus of the senate
of the general assembly.
(e) As used in this section, "contract" refers only to a contract
with 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 has
a contract with the commission or the director.
(g) As used in this section, "officer" refers only to either of the
following:
(1) An individual listed as an officer of a corporation in the
corporation'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 this
section 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 made
a 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 action
committee of a contractor may not make a contribution to a candidate
or 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 section
commits 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 local
offices
Sec. 19.7. (a) This section applies only to contributions made after
March 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 the
following:
(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 the
following:
(1) A candidate's committee.
(2) A regular party committee.
(3) A committee organized by a legislative caucus of the house
of the general assembly.
(4) A committee organized by a legislative caucus of the senate
of the general assembly.
(e) As used in this section, "contract" refers only to a contract
with 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 game
play purposes of a player's selection in lottery games
involving player selections.
(B) The drawing, determination, or generation of winners in
lottery games.
(C) The security services required under this article.
(f) As used in this section, "contractor" refers to a person who has
a contract with the commission or the director.
(g) As used in this section, "officer" refers only to either of the
following:
(1) An individual listed as an officer of a corporation in the
corporation'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 this
section 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 made
a 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 action
committee of a contractor may not make a contribution to a candidate
or 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 section
commits a Class D felony.
As added by P.L.4-1996, SEC.91.