In this subtitle the following words have the meanings indicated.
“Agency” means the State Lottery and Gaming Control Agency.
“Commission” means the State Lottery and Gaming Control Commission.
“Director” means the Director of the Agency.
“Governmental unit” means:
an instrumentality of the State;
a county or municipal corporation of the State; or
an instrumentality of a county or municipal corporation of the State.
“Jackpot game” means a lottery game for which the top prize amount varies:
based on sales; and
if the prize was won in the preceding drawing.
“License” means a license issued by the Director to act as a licensed agent.
“Licensed agent” means a person or governmental unit licensed by the Director to act as a State lottery sales agent.
“Multijurisdictional game” means a lottery game offered by the Agency and:
any other political entity outside the State or outside the United States; or
any private licensee of a state or foreign nation.
“State lottery” means the lottery established and operated under this subtitle.
“State lottery” includes a raffle conducted by the Agency.
“Subscription” means a method of playing a multijurisdictional or jackpot lottery game by which an individual submits to the Agency:
an application to play a game using the same game data for a specified number of consecutive drawings; and
payment for the drawings.
Another law that prohibits the sale of lottery tickets or shares or other acts relating to a lottery does not apply to the State lottery.
There is a State Lottery and Gaming Control Agency.
There is a State Lottery and Gaming Control Commission in the Agency.
The Commission consists of seven members appointed by the Governor with the advice and consent of the Senate.
The presiding officer of either house of the General Assembly may recommend to the Governor a list of individuals for appointment to the Commission.
At the time of appointment, each member of the Commission shall be:
at least 25 years old;
a resident of the State who has resided in the State for at least 5 years;
a qualified voter of the State;
an individual who has not been convicted of or granted probation before judgment for a serious crime or a crime that involves moral turpitude or gambling; and
knowledgeable and experienced in fiscal matters and shall have substantial experience:
as an executive with fiduciary responsibilities in charge of a large organization or foundation;
in an academic field relating to finance or economics; or
as an accountant, economist, or financial analyst, or as a professional in a similar profession relating to fiscal matters or economics.
A member of the Commission may not:
have a direct or indirect financial interest, ownership, or management, including holding any stocks, bonds, or other similar financial interests in any gaming activities, including horse racing, video lottery terminals, table games, or lottery;
have an official relationship to a person who holds a license under Subtitle 1A of this title;
be an elected official of State or local government;
receive or share in, directly or indirectly, the receipts or proceeds of any gaming activities, including horse racing, video lottery terminals, table games, or lottery; or
have a beneficial interest in any contract for the manufacture or sale of gaming devices, the conduct of any gaming activity, or the provision of any independent consulting services in connection with any gaming establishment or gaming activity.
No more than five members may be of the same political party.
The members of the Commission shall reflect the geographic, racial, and gender makeup of the State.
A member of the Commission shall file a financial disclosure statement with the State Ethics Commission in accordance with Title 5, Subtitle 6 of the General Provisions Article.
The term of a member is 5 years.
The terms of members are staggered as required by the terms provided for members of the Commission on October 1, 2012.
At the end of a term, a member continues to serve until a successor is appointed and qualifies.
A member who is appointed after a term has begun serves only for the rest of the term and until a successor is appointed and qualifies.
A member may not serve for more than two full terms.
Subject to the hearing requirements of this subsection, the Governor may remove a member for cause.
Before the Governor removes a member, the Governor shall give the member notice and an opportunity for a public hearing.
The Governor shall appoint one member of the Commission to serve as a liaison to the State Racing Commission established under Title 11 of the Business Regulation Article.
The Commission shall include at least one member who resides in a local jurisdiction in which a video lottery facility is located.
From among its members, the Commission annually shall elect a chairman.
With the advice and consent of the Senate, the Governor shall appoint the Director of the Agency, who is the executive officer of the Agency and secretary of the Commission.
The Director serves at the pleasure of the Governor.
The Director must have the training and experience needed to direct the work of the Agency.
The Director shall devote full time to the duties of office and may not engage in another profession or occupation.
In addition to any duties set forth elsewhere in this subtitle, the Director shall have immediate supervision and direction over the Agency.
The Director is entitled to the salary provided in the State budget.
A majority of the full authorized membership of the Commission is a quorum.
The Commission may not act unless at least 4 members concur.
The Commission shall determine the times and places of its meetings.
The secretary of the Commission promptly shall send the Governor a certified copy of the minutes of each meeting of the Commission.
The minutes shall include a copy of each regulation of the Agency that is adopted.
Each member of the Commission is entitled to:
the salary provided in the budget of the Commission; and
reimbursement for reasonable expenses:
incurred in the performance of the Commission member’s duties; and
as provided in the budget of the Commission.
Each member of the Commission shall be paid biweekly.
Each member is entitled to reimbursement for expenses under the Standard State Travel Regulations, as provided in the budget of the Commission.
With the advice of the Commission, the Director may employ deputy directors and other staff in accordance with the State budget.
Except as provided in paragraph (3) of this subsection or otherwise by law, the staff of the Commission is in the State Personnel Management System.
Except as provided in subparagraph (ii) of this paragraph, a deputy director is in the executive service of the State Personnel Management System.
A deputy director may be removed only for cause after being given notice and an opportunity for a hearing.
With the approval of the Commission and in accordance with the State budget, the Director may set the compensation of an Agency employee in a position that:
is unique to the Agency;
requires specific skills or experience to perform the duties of the position; and
does not require the employee to perform functions that are comparable to functions performed in other units of the Executive Branch of State government.
The Secretary of Budget and Management, in consultation with the Director, shall determine the positions for which the Director may set compensation under subparagraph (i) of this paragraph.
The Governor shall include in the State budget sufficient money for the Commission to hire, develop, and organize a staff to perform the functions of the Commission.
As deemed necessary by the Commission, the Commission shall hire experts including economists, gaming specialists, and lawyers.
The Commission shall contract with an outside consultant to provide continual analysis of the gaming industry both within and outside the State and support the licensing activities of the Commission and the Video Lottery Facility Location Commission.
The cost of the consultant required under this subparagraph may be divided proportionally among the video lottery operation licensees as determined by the Commission.
In addition to the specific powers granted and duties imposed by this subtitle, the Commission has the powers and duties set forth in this section.
The Commission shall conduct studies of the State lottery and gaming program to:
identify any defect in this subtitle, Subtitle 1A of this title, or the regulations of the Agency that may allow abuses in the operation and administration of the State lottery and gaming program or any evasion of this subtitle, Subtitle 1A of this title, or the regulations;
guard against the use of this subtitle, Subtitle 1A of this title, and the regulations of the Agency as a means of conducting organized crime;
ensure that the regulations of the Agency are proper and that this subtitle, Subtitle 1A of this title, and the regulations are administered to serve the purpose of this subtitle; and
analyze the gaming industry within and outside the State to determine whether Maryland’s gaming program is competitive and maximizing revenues for the State.
The Commission shall conduct studies of:
the operation and administration of similar laws in other states or countries;
federal laws that may affect the operation of the State lottery or gaming activities;
literature on lotteries and gaming activities, including problem gambling programs; and
the reaction of citizens of the State to existing and potential features of the State lottery and gaming program.
The Commission shall submit to the Governor and, subject to § 2–1257 of this article, to the General Assembly the reports required under this subsection.
The Commission shall submit monthly a report that states the total State lottery and gaming revenues and the total prize disbursements and other expenses for the preceding month.
The Commission shall submit annually a report that states the total State lottery and gaming revenues and the total prize disbursements and other expenses for the preceding year.
The Commission shall submit a report whenever a matter requires an immediate change in a State law to:
prevent an abuse or evasion of this subtitle, Subtitle 1A of this title, or a regulation of the Agency; or
rectify an undesirable condition in the operation or administration of the State lottery and gaming program.
With the approval of the Commission, the Director may adopt regulations of the Agency.
The regulations of the Agency shall provide for:
all matters that are necessary or desirable for the efficient and economical operation and administration of the State lottery; and
the convenience of buyers of State lottery tickets and shares and of the holders of a winning ticket or share.
The Director shall:
supervise and administer the State lottery in accordance with the regulations of the Agency and this subtitle;
confer, at least once a month, with the Commission on the operation and administration of the State lottery;
make available to the Commission any record or other information of the Agency that the Commission requests;
advise the Commission about any change needed to improve the operation or administration of the State lottery;
with the approval of the Commission and subject to Division II of the State Finance and Procurement Article, contract for:
the operation of all or any part of the State lottery; and
the use of space, for advertising or promotional purposes, on tickets or publications distributed by the Agency, if, in the Director’s discretion, the action is fiscally prudent and in the best interest of the State lottery;
submit monthly to the Comptroller and to the Commission a certified statement of the total State lottery revenues and the total prize disbursements and other expenses for the preceding month; and
with the approval of the Commission, contract for the promotion of the State lottery and enter into private sector cooperative marketing project agreements as provided for in § 11–203(a)(1)(xiii) of the State Finance and Procurement Article.
With the approval of the Commission and the Legislative Policy Committee, the Director may enter into agreements to operate multijurisdictional lotteries or raffles with:
any other political entity outside the State or outside the United States that operates a lottery or raffle; or
a private licensee of a state or a foreign nation.
The Commission may advise the Director on the operation and administration of the State lottery.
In accordance with the regulations of the Agency and this subtitle, the Director may:
arrange for a person to perform any activity, function, or service in connection with the operation of the State lottery which shall constitute a lawful activity, function, or service of the person; and
authorize the Agency to sell lottery tickets for a temporary period at any promotional or special event being held in the State if:
in the Director’s determination, no licensed agent is available to conduct the sale; and
the person holding the promotional or special event has authorized the Agency to sell lottery tickets at the event.
Except as provided in paragraphs (2) and (3) of this subsection, the Agency may not allow the establishment of any system or program that allows a person to purchase a State lottery ticket through an electronic device that connects to the Internet, such as a personal computer or mobile device.
The Agency may allow the establishment of a system or program that allows an individual to purchase a subscription through an electronic device that connects to the Internet, such as a personal computer or mobile device.
The Agency may allow a licensed agent to sell a voucher that an individual may use to fund the purchase of a subscription.
The Agency shall pay a licensed agent that sells a voucher described under subparagraph (i) of this paragraph the commission rate stated in § 9–117 of this subtitle.
The Agency shall pay a licensed agent the commission rate stated in § 9–117 of this subtitle for the renewal of a subscription that was originally funded by a voucher sold by the licensed agent and is renewed before the subscription’s expiration for a period of 24 months from the date of the first renewal.
It is the intent of the General Assembly that the Agency offer the Racetrax lottery game at a frequency that maximizes revenue from the game.
In this section the following words have the meanings indicated.
“Active members” means individuals who are recognized by a fraternal organization as dues–paying members or lifetime members.
“Fraternal organization” means a nonprofit organization that:
is tax exempt and organized as a fraternal or sororal organization under § 501(c)(7) or § 501(c)(8) of the Internal Revenue Code;
owns or leases a property; and
has a bona fide membership of at least 300 active members or has been located in a county in which subsection (d) of this section applies for at least 5 years before the organization applies for a license under subsection (d) of this section; or
is independent and the membership of which comprises solely graduate members of a nationwide fraternity or sorority that is tax exempt under § 501(c)(7) or § 501(c)(8) of the Internal Revenue Code.
“Fraternal organization” does not include:
any college or high school fraternity or sorority; or
any other fraternity or sorority the membership of which is restricted in whole or in part to students or graduates of an educational institution or a professional school.
“Veterans’ organization” means an organization that is tax exempt and organized as a veterans’ organization under § 501(c)(19) or § 501(c)(4) of the Internal Revenue Code.
Except as provided in subsection (d) of this section, in accordance with the regulations of the Agency and this subtitle, the Director shall issue licenses to the persons and governmental units that will best serve the public convenience and promote the sale of State lottery tickets or shares.
Before issuing a license to an applicant, the Director may consider such factors as:
the financial responsibility and security of the applicant and the business or activity of the applicant;
the accessibility of the place of business or activity to the public;
the sufficiency of existing licenses to serve the public convenience; and
the volume of expected sales.
This subsection does not apply in:
Caroline County;
Cecil County;
Dorchester County;
Kent County;
Queen Anne’s County;
Somerset County;
Talbot County;
Wicomico County; and
Worcester County.
Subject to subparagraph (ii) of this paragraph, the Director may issue a license under this subtitle for:
not more than five instant ticket lottery machines to an applicant that is a veterans’ organization; and
not more than three instant ticket lottery machines to an applicant that is a fraternal organization.
A veterans’ organization or fraternal organization that is issued a license under this subsection shall locate and operate its instant ticket lottery machines at its principal meeting hall in the county in which the veterans’ organization or fraternal organization is located.
As a retailer under the instant ticket lottery machine program, a veterans’ organization or fraternal organization shall be compensated based on a percentage of proceeds.
After deduction of any validation prize payout as provided under § 9–117 of this subtitle, a veterans’ organization issued a license under this subsection shall retain 50% of the net proceeds and credit the remaining net proceeds from the sale of tickets from instant ticket lottery machines to the State Lottery Fund established under § 9–118 of this subtitle.
On a properly approved transmittal, the Agency shall pay the following amounts from the net proceeds of sales of tickets from instant ticket lottery machines operated by a veterans’ organization:
5% to the Maryland Veterans Trust Fund established under § 9–913 of this title;
to the Agency, an amount necessary to pay for the purchase or lease of the instant ticket lottery machines and Agency administration fees for the program; and
any remaining amount to the Education Trust Fund established under § 9–1A–30 of this title.
After deduction of a validation prize payout, a fraternal organization issued a license under this subsection shall:
retain 25% of the net proceeds for undergraduate, graduate, or trade school scholarships or capital improvements, capital outlays, acquisitions, or existing community outreach programs and resources; and
remit the remainder to the Agency to be distributed as provided in subparagraph (iv) of this paragraph.
On a properly approved transmittal, the Agency shall pay the following amounts from the net proceeds of sales of tickets from instant ticket lottery machines operated by a fraternal organization:
20% to the Homelessness Solutions Program in the Department of Housing and Community Development, to be used, in consultation with the Department of Veterans and Military Families, to assist veterans and families of veterans, with priority given to:
women veterans who are homeless or at risk of homelessness;
single–parent veteran families; and
veterans who are victims of domestic violence;
5% to the Maryland Veterans Trust Fund established under § 9–913 of this title;
to the Agency, an amount necessary to pay for the purchase or lease of the instant ticket lottery machines and Agency administration fees for the program; and
any remaining amount to the Education Trust Fund established under § 9–1A–30 of this title.
An organization may not use net proceeds from the sale of tickets from instant ticket lottery machines that would otherwise be distributed as required under paragraph (3) of this subsection for the costs of purchasing or leasing instant ticket lottery machines.
The Director may adopt regulations to implement the provisions of this subsection that include restricting the location of instant ticket lottery machines in areas of a veterans’ organization’s or a fraternal organization’s public meeting hall that is accessible to the public.
A fraternal organization may not locate or operate its instant ticket lottery machines in a meeting hall that is:
located on or affiliated with the campus of an institution of higher education; or
located in a building where students of an institution of higher education reside.
The Agency shall ensure that the element of chance in the conduct of the gaming through the instant ticket lottery machines established under this subsection is contained wholly within the predetermined instant lottery ticket, and that player enhancements in an instant ticket lottery machine may not affect the element of chance.
The Director may not issue a license to:
a person or governmental unit to engage in business primarily as a licensed agent; or
an individual who is under the age of 21 years.
The Commission may hear and decide an appeal of a denial of a license.
In this section, “Central Repository” means the Criminal Justice Information System Central Repository of the Department of Public Safety and Correctional Services.
The Agency shall apply to the Central Repository for a State and national criminal history records check for each new applicant for a license under § 9–113 of this subtitle.
The Director may require any applicant seeking a change of ownership or renewal of a license to submit fingerprints to the Central Repository for a State and national criminal history records check.
The Central Repository shall provide to the Agency:
the State and national criminal history records of each individual requiring a criminal history records check under subsection (b) of this section and issue a printed statement of the Federal Bureau of Investigation report;
an update of the initial criminal history records check for an individual requiring a criminal history records check and issue a revised printed statement of the Federal Bureau of Investigation report listing any criminal charge occurring after the date of the initial criminal history records check; and
an acknowledged receipt of the application for a criminal history records check by an individual requiring a criminal history records check.
As part of the application for a criminal history records check, the Agency shall submit to the Central Repository:
a complete set of the applicant’s legible fingerprints taken on forms approved by the Director of the Central Repository and the Director of the Federal Bureau of Investigation;
the fee authorized in § 10–221(b)(7) of the Criminal Procedure Article for access to Maryland criminal history records; and
the mandatory processing fee required by the Federal Bureau of Investigation for a national criminal history records check.
In accordance with §§ 10–201 through 10–234 of the Criminal Procedure Article, the Central Repository shall forward to the applicant and the Agency a printed statement of the applicant’s criminal history record information.
Nothing in paragraph (1) of this subsection shall preclude the Director from notifying a licensed agent or an applicant of the approval or disqualification based on information obtained by the Agency under this section.
Information obtained from the Central Repository under this section:
shall be confidential;
may not be redisseminated; and
may be used only in connection with the issuance of a license required under this subtitle.
The subject of a criminal history records check under this section may contest the contents of the printed statement issued by the Central Repository as provided in § 10–223 of the Criminal Procedure Article.
A license authorizes the licensee to act as a State lottery sales agent while the license is effective.
The Director may require any lottery agent granted a license to post either an appropriate surety bond, irrevocable letter of credit, or cash security deposit in the amount that the regulations of the Agency set.
In lieu of a surety bond, irrevocable letter of credit, or cash security deposit, the Agency, at the discretion of the Director, may provide a blanket bond covering all or selected agents in accordance with the availability of bonds and the financial status of an individual or a corporation.
A bond provided by the Agency shall be:
provided at the agent’s expense; and
based upon a financial evaluation of the agent conducted by the Director.
Each licensed agent shall display prominently the license or a copy of it, as the regulations of the Agency require.
The Commission may suspend or revoke a license, on the recommendation of the Director.
A licensed agent shall receive regular commissions of 5.75% of the licensed agent’s gross receipts from ticket sales.
A licensed agent may further receive a cashing fee not to exceed 2% of valid prizes paid for services rendered in cashing winning tickets.
The Commission may authorize the payment of special bonuses to licensed agents and their employees.
The total of the bonuses may not exceed one–half of 1% of the gross receipts from ticket sales for the year for which the bonuses are awarded.
Lottery sales agents may not offer patrons inducements of alcoholic beverages to purchase or redeem lottery tickets.
Unless otherwise expressly provided by a lease for premises on which lottery tickets are sold, whenever lottery tickets are sold by a licensed agent on premises subject to rent that is wholly or partially based on a percentage of gross sales or receipts, the tenant responsible for payment of the rent may calculate that portion of the rent arising from the sale of lottery tickets solely on the basis of:
the commission received by the licensed agent on the sale of those tickets; and
in the case of instant lottery tickets, the difference between the price paid by the licensed agent in purchasing the tickets from the Agency and the price for which they were sold by the agent.
There is a State Lottery Fund.
Except as otherwise specifically provided by law:
the Agency shall account to the Comptroller for all of the revenue under this subtitle; and
the Comptroller shall credit the revenues to the State Lottery Fund.
A system of voucher deposits may be used for:
payout of prizes;
payout of commissions; and
reimbursement for money paid out for prizes or commissions.
Except for the commission of a licensed agent, all of the receipts from the sale of State lottery tickets or shares are due to the Agency:
on the due date that the Agency sets; or
at the times and within the intervals prescribed by Agency regulations.
The Director shall require all licensed agents to deposit, with a bank that the licensed agent selects and to the credit of the State Lottery Fund, all of the receipts from the sale of State lottery tickets or shares less any commission and validation prize payout.
A licensed agent may commingle proceeds from the sale of State lottery tickets or shares with business receipts of the licensed agent.
Proceeds, including cash proceeds of the sale of any lottery products less any commission and validation prize payout, shall be remitted and paid directly or through the Agency’s authorized collection representative.
Licensed agents and each person who is a guarantor or indemnitor of a licensed agent’s financial obligations to the Agency shall be liable for all proceeds from the sale of lottery tickets or shares.
The Director may adjust the time, interval, or method of collection for collections of proceeds of any licensed agent.
Nothing in this subsection may be construed to impose obligations or liability on any bank in which proceeds from the sale of State lottery tickets or shares are deposited.
This subparagraph does not affect the rights and obligations of any financial institution that has issued an irrevocable letter of credit or holds any cash security deposit as provided in § 9-114 of this subtitle.
The Director may require any or all licensed agents to submit to the Director or a designee of the Director a report that:
is in the form that the Director requires; and
gives the information that the Director requires as to the transactions in and receipts from the sale of State lottery tickets or shares.
The Agency may impose a service charge if the payor bank dishonors:
a check that is given to the Agency by a licensed agent; or
an electronic transfer of funds to the State lottery account from the account of a licensed agent for money received from the sale of State lottery tickets or shares.
The service charge under paragraph (1) of this subsection shall be sufficient to cover the Agency’s costs associated with the dishonored return.
The Director shall adopt regulations specifying the costs and the methodology for determining the costs that are associated with a dishonored return.
The service charge imposed under paragraph (1) of this subsection shall be in addition to any other fees or charges authorized to be charged under this article.
A licensed agent shall be charged:
as provided in § 13-604(a) of the Tax - General Article, interest on the money that is not paid to the Agency within 10 days after the due date; and
if the Agency refers the debt to the Central Collection Unit of the Department of Budget and Management, an additional fee sufficient to cover administrative and collection costs, in an amount equal to any fee charged by the Central Collection Unit in accordance with § 3-304(a)(2) of the State Finance and Procurement Article.
The amount, including any interest or penalty charge, due to the Agency from a licensed agent, as of the time that notice of the lien is filed:
is a lien on the property of that licensed agent; and
subject to paragraph (5) of this subsection, has the same effect as a judgment lien.
The Agency shall:
file a notice of the lien with the clerk of the circuit court for the county where the property is located; and
mail a copy of the notice to the business address of the licensed agent.
The clerk of court promptly shall enter in the judgment docket of the court:
the name of the licensed agent;
the amount of the lien; and
the date of the lien.
Within 30 days after the lien is filed, the licensed agent may petition the court for a hearing as to the amount that is due to the Agency.
Until an officer of a court levies on personal property, the lien is not effective against an innocent buyer for value.
The Comptroller shall:
distribute, or cause to be distributed, the State Lottery Fund to pay:
on a pro rata basis for the daily and nondaily State lottery games, the expenses of administering and operating the State lottery, as authorized under this subtitle and the State budget; and
then, except as provided in § 10–113.1 of the Family Law Article, § 11–618 of the Criminal Procedure Article, and § 3–307 of the State Finance and Procurement Article, the holder of each winning ticket or share; and
cause to be distributed to the State Lottery Fund:
beginning in fiscal year 2027 and each fiscal year thereafter, $5,000,000 from the Purse Dedication Account, in accordance with § 9–1A–28(b)(3)(ii) of this title;
beginning in fiscal year 2027 and each fiscal year thereafter, $3,500,000 from the funds for local impact grants, in accordance with § 9–1A–31(a)(4)(i)3 and (b)(3)(i)2 of this title; and
beginning in fiscal year 2027 and each fiscal year thereafter, 80% of the amount of funds from the Racetrack Facility Renewal Account allocated to thoroughbred track licensees, in accordance with § 9–1A–29(d)(1)(i)2 of this title.
By the end of the month following collection, the Comptroller shall deposit, cause to be deposited, or pay:
after June 30, 2023, but not later than June 30, 2026, into the Maryland Stadium Facilities Fund established under § 7–312 of the State Finance and Procurement Article from the money that remains in the State Lottery Fund, after the distribution under subsection (a) of this section, an amount not to exceed $14,200,000 in each fiscal year;
after June 30, 2023, but not later than June 30, 2026, from the money that remains in the State Lottery Fund after the distribution under subsection (a) of this section, an amount for each fiscal year not to exceed:
$34,900,000 into the Camden Yards Football Sports Facility Supplemental Financing Fund established under § 10–652.1 of the Economic Development Article; and
$40,900,000 into the Camden Yards Baseball Sports Facility Supplemental Financing Fund established under § 10–652.2 of the Economic Development Article;
after June 30, 2026, but not later than June 30, 2039, into the Maryland Stadium Facilities Fund established under § 7–312 of the State Finance and Procurement Article from the money that remains in the State Lottery Fund, after the distribution under subsection (a) of this section, an amount not to exceed $3,360,000 in each fiscal year;
after June 30, 2026, but not later than June 30, 2039, from the money that remains in the State Lottery Fund after the distribution under subsection (a) of this section, an amount for each fiscal year not to exceed:
$45,000,000 into the Camden Yards Football Sports Facility Supplemental Financing Fund established under § 10–652.1 of the Economic Development Article; and
$41,640,000 into the Camden Yards Baseball Sports Facility Supplemental Financing Fund established under § 10–652.2 of the Economic Development Article; and
after June 30, 2039, from the money that remains in the State Lottery Fund after the distribution under subsection (a) of this section, an amount for each fiscal year not to exceed:
$45,000,000 into the Camden Yards Football Sports Facility Supplemental Financing Fund established under § 10–652.1 of the Economic Development Article; and
$45,000,000 into the Camden Yards Baseball Sports Facility Supplemental Financing Fund established under § 10–652.2 of the Economic Development Article;
after June 30, 2014, into the Maryland Veterans Trust Fund 10% of the money that remains in the State Lottery Fund from the proceeds of sales of tickets from instant ticket lottery machines by veterans’ organizations under § 9–112(d) of this subtitle, after the distribution under subsection (a) of this section;
after June 30, 2014, into the Baltimore City Public School Construction Financing Fund established under § 10–656 of the Economic Development Article the money that remains in the State Lottery Fund from the proceeds of all lotteries after the distributions under subsection (a) of this section and items (i) and (ii) of this paragraph, an amount equal to $20,000,000 in each fiscal year that bonds are outstanding and unpaid, to be paid in two installments with at least $10,000,000 paid no later than December 1 of each fiscal year;
after June 30, 2026, into the Racing and Community Development Financing Fund established under § 10–657.2 of the Economic Development Article from the money that remains in the State Lottery Fund, after the distribution under subsection (a) of this section:
for fiscal year 2026, an amount equal to $13,400,000; and
for each fiscal year thereafter, an amount equal to at least $29,000,000 until the bonds issued for a racing facility have matured;
after June 30, 2020, into the Michael Erin Busch Sports Fund established under § 10–612.2 of the Economic Development Article from the money that remains in the State Lottery Fund from the proceeds of all lotteries after the distributions under subsection (a) of this section and items (i) through (iv) of this paragraph, an amount equal to $1,000,000 in each fiscal year;
after June 30, 2021, a grant to the Maryland Humanities Council for Maryland History Day and other programming from the money that remains in the State Lottery Fund after the distributions under subsection (a) of this section and items (i) through (v) of this paragraph, an amount equal to $150,000 in each fiscal year;
after June 30, 2021, to Anne Arundel County or Baltimore City each fiscal year the amount required to be distributed under § 9–1A–31(a)(7)(ii) of this title to be used as required under § 9–1A–31 of this title;
after June 30, 2022, into the Maggie McIntosh School Arts Fund established under § 5–243 of the Education Article from the money that remains in the State Lottery Fund from the proceeds of all other lotteries after the distributions under subsection (a) of this section and items (i) through (vii) of this paragraph, an amount equal to $250,000 in each fiscal year;
after June 1, 2022, to the Sports Entertainment Facilities Financing Fund established under § 10–657.5 of the Economic Development Article from the money that remains in the State Lottery Fund from the proceeds of all lotteries after the distributions under subsection (a) of this section and items (i) through (viii) of this paragraph, an amount not to exceed $25,000,000 to be paid in two installments not later than November 1 and June 1 of each fiscal year;
after June 30, 2022, to the Major Sports and Entertainment Event Program Fund established under § 10–611.2 of the Economic Development Article from the money that remains in the State Lottery Fund from the proceeds of all lotteries after the distributions under subsection (a) of this section and items (i) through (ix) of this paragraph:
for fiscal year 2023, an amount equal to $10,000,000; and
for each fiscal year thereafter, the amount necessary to restore the Major Sports and Entertainment Event Program Fund to a balance of $10,000,000;
after June 30, 2024, into the Bus Rapid Transit Fund established under § 2–802.1 of the Transportation Article for bus rapid transit system grants in accordance with § 2–802 of the Transportation Article from the money that remains in the State Lottery Fund from the proceeds of all lotteries after the distributions under subsection (a) of this section and items (i) through (x) of this paragraph:
for fiscal year 2025, an amount equal to $27,000,000 in each fiscal year; and
for each fiscal year thereafter, an amount equal to $17,000,000 in each fiscal year;
after June 30, 2026, except as provided in item 2 of this item, into the Prince George’s County Blue Line Corridor Facility Fund established under § 10–657.6 of the Economic Development Article from the money that remains in the State Lottery Fund from the proceeds of all lotteries after the distributions under subsection (a) of this section and items (i) through (xi) of this paragraph, $29,000,000; and
for fiscal year 2027:
$18,000,000 for a grant to the Maryland Economic Development Corporation for the purpose of a mixed–use development, including a soccer stadium at the University of Maryland, College Park;
$4,000,000 for a grant to the Velocity Companies for infrastructure improvements and economic development along the Blue Line Corridor;
$2,000,000 for a grant to the Atlantic Pacific Companies to support the Addison Park Development Project;
$1,500,000 for a grant to the Prince George’s County Redevelopment Authority to support Artspace in Mount Rainier;
$750,000 for a grant to the Town of Colmar Manor for the Colmar Manor Community Center and Town Hall; and
$750,000 for a grant to the Town of Cottage City for converting a firehouse into a Community Outreach Center;
after June 30, 2024, a supplemental local impact grant of $3,000,000 each fiscal year to the County Executive and County Council of Prince George’s County from the money that remains in the State Lottery Fund from the proceeds of all lotteries after the distributions under subsection (a) of this section and items (i) through (xii) of this paragraph to be distributed in Prince George’s County in accordance with § 9–1A–31 of this title;
subject to paragraph (3) of this subsection after June 30, 2025, supplemental local impact aid of $250,000 each fiscal year from the proceeds of the Racetrax lottery game to Anne Arundel County, Howard County, and the City of Laurel in proportion to each jurisdiction’s share of the money required to be paid under § 11–404(d) of the Business Regulation Article to be used in accordance with paragraph (4) of this subsection; and
into the General Fund of the State the money that remains in the State Lottery Fund from the proceeds of all lotteries after the distributions under subsection (a) of this section and items (i) through (xiv) of this paragraph.
The money paid into the General Fund under this subsection is available in the fiscal year in which the money accumulates in the State Lottery Fund.
The Comptroller may not pay the supplemental local impact aid required under paragraph (1)(xiv) of this subsection for any fiscal year following the fiscal year that:
Laurel Race Course is no longer used for live racing or training; or
backstretch workers employed at Laurel Race Course are no longer living on the Laurel Race Course property.
Anne Arundel County, Howard County, and the City of Laurel shall use the supplemental local impact aid required under paragraph (1)(xiv) of this subsection to provide programs and services to the communities surrounding Laurel Race Course including:
health and mental health services;
individual and family counseling;
drug and alcohol addiction awareness, support, and treatment;
social services;
nutrition and wellness programs; and
transportation, if necessary, to off–site medical and wellness services.
Anne Arundel County may use the supplemental local impact aid under paragraph (1)(xiv) of this subsection only to provide grant funding for the purposes identified under subparagraph (i) of this paragraph to nonprofit organizations:
with a history of working with backstretch workers employed at Laurel Race Course; and
that employ Spanish–speaking program staff or provide translation services for nonnative English speakers.
In consultation with at least two Laurel Race Course backstretch workers designated by the County Executive, Anne Arundel County may use the public grant application process developed and administered by the Laurel Race Course Impact Advisory Committee to provide grant funding to nonprofit organizations under this subparagraph.
A nonprofit organization that receives grant funding under this subparagraph may use the funding only to provide programs and services at Laurel Race Course or within 1 mile of Laurel Race Course to backstretch workers employed at Laurel Race Course or residents living in the 20724 postal zip code.
The regulations of the Agency shall apportion the money in the State Lottery Fund in accordance with subsection (b) of this section.
The regulations of the Agency shall provide for winning tickets to be drawn at least once a week.
Except as otherwise provided in this subsection, § 10–113.1 of the Family Law Article, § 11–618 of the Criminal Procedure Article, and § 3–307 of the State Finance and Procurement Article, a prize won under this subtitle is not assignable.
If the prize winner dies before the prize is paid, the prize may be paid to the estate of the prize winner.
Under appropriate court order, a prize won under this subtitle may be paid to a person other than the winner.
The right of a person to receive payment under a prize that is paid in installments over time by the Agency may be voluntarily assigned as a whole or in part, if the assignment is made to a person designated in accordance with an order of the circuit court in the county where the headquarters of the Agency is located.
A circuit court specified under subparagraph (i) of this paragraph may hear petitions for approval of voluntary assignments.
On the filing by the assignor or the assignee in the circuit court of a petition seeking approval of a voluntary assignment, the court shall issue an order approving a voluntary assignment and directing the Agency to make prize payments as a whole or in part to the assignee if the court finds that:
the assignment is in writing, is executed by the assignor, and is by its terms subject to the laws of this State;
the assignor provides a sworn affidavit attesting that the assignor is of sound mind, is in full command of the assignor’s faculties, and is not acting under duress;
the assignor has been advised about the assignment by an independent attorney who is not related to and not compensated by the assignee or an affiliate of the assignee;
the assignor has received independent financial or tax advice concerning the effects of the assignment from an attorney or other professional who is unrelated to and is not compensated by the assignee or an affiliate of the assignee;
the assignor understands that the assignor will not receive the prize payments or parts of payments during the years assigned;
the assignor understands and agrees the Agency, Commission, and officials and employees of the Agency are not liable or responsible for making any of the assigned payments;
the assignee provides the assignor with a one–page disclosure statement that sets forth in bold type not less than 14 points in size the payments being assigned by amount and payment date, the purchase price, the rate of discount to present value assuming daily compounding and funding on the contract date, and any origination or closing fee that will be charged to the assignor; and
the contract of assignment expressly states that the assignor has 5 business days after signing the contract to cancel the assignment.
Written notice of the petition and proposed assignment and any court hearing concerning the petition and proposed assignment shall be given to the Agency’s counsel at least 30 days before a court hearing.
The Agency need not appear in or be named as party to an action that seeks judicial approval of an assignment but may intervene as of right in the action.
A certified copy of a court order approving a voluntary assignment shall be given to the Agency not later than 60 days before the date on which the payment is to be made.
Beginning October 1, 2006, the Agency, not later than 30 days after receiving a certified copy of a court order approving a voluntary assignment, shall send the assignor and the assignee written confirmation of:
the court–approved assignment; and
the intent of the Agency to rely on the assignment in making payments to the assignee named in the order.
A voluntary assignment may not include or cover payments or parts of payments to the extent that the payments are subject to child support payments, criminal restitution, or bankruptcy proceedings as of the date of the court order approving a voluntary assignment.
The Agency, the Commission, and officials and employees of the Agency are not liable under this paragraph after payment of an assigned prize is made.
The assignor and assignee shall hold harmless and indemnify the Agency, the Commission, and the State and its employees and agents from all claims, suits, actions, complaints, or liabilities related to the assignment.
The Agency may establish a reasonable fee to defray administrative expenses associated with assignments made under this section, including a processing fee imposed by a private annuity provider.
The amount of the fee shall reflect the direct and indirect costs of processing assignments.
A contract of assignment in which the assignor is a lottery winner shall include a sworn affidavit in a form that the Agency provides and the assignee completes.
Until the Agency provides the form, an assignee may use its own form that includes the information required in subsubparagraph 3 of this subparagraph.
The affidavit shall include:
a summary of assignee contacts with the winner;
a summary of any complaints, lawsuits, claims, or other legal actions from lottery winners regarding conduct of the assignee or its agents;
a statement that the assignee is registered to do business in the State and is in good standing with the Department of Assessments and Taxation and any other licensing or regulatory unit whose approval is required in the conduct of the assignee’s business;
a brief business history of the assignee;
a description of the business of the assignee; and
a statement of the assignee’s privacy and nonharassment policies and express affirmation that the assignee has followed those policies in the State.
The affidavit shall be provided only by the assignee who enters into the contract with the lottery winner or the estate of a lottery winner.
The assignee shall notify the Agency of its business location and mailing address for payment purposes and of any change in location or address during the entire course of the assignment.
An assignment may be made by a husband and wife who are co–owners of a prize only if they jointly assign the prize to an assignee.
A court order or a combination of court orders under this section may not require the Agency to divide a single prize payment among more than three different persons.
This section does not prohibit the substitution of assignees as long as there are not more than three assignees at any one time for any one prize payment.
Any subsequent assignee is bound as the original assignee by the provisions of this section and the terms and conditions of the contract of assignment.
If the Internal Revenue Service or a court of competent jurisdiction issues a determination letter, revenue ruling, or other public document declaring that the voluntary assignment of prizes will affect the federal income tax treatment of lottery prize winners who do not assign their prizes:
within 15 days after the Agency receives the letter, ruling, or other document, the Director of the Agency shall file a copy of it with the Attorney General; and
a court may not issue an order authorizing a voluntary assignment under this paragraph.
This paragraph shall prevail over any inconsistent provision in § 9–406 of the Commercial Law Article.
A contract or agreement made or entered into on or before May 31, 2006, that purports to voluntarily assign or grant an interest in prize payments is void.
The Director may establish by regulation the amount a licensed agent may pay in cash game prizes.
In this subsection the following words have the meanings indicated.
“Financial institution” has the meaning stated in § 13–301 of the Estates and Trusts Article.
“Guardian” has the meaning stated in § 13–101 of the Estates and Trusts Article.
“Member of the minor’s family” has the meaning stated in § 13–301 of the Estates and Trusts Article.
If a minor wins a prize of less than $5,000, the Director may give a draft, as provided for in rules and regulations of the Agency payable to the order of the minor, to:
an adult member of the minor’s family; or
a guardian of the minor.
If a minor wins $5,000 or more, the Director may deposit the prize in a financial institution to the credit of one of the following, as custodian for the minor:
an adult member of the minor’s family; or
a guardian of the minor.
A custodian under paragraph (3) of this subsection has the same powers and duties as a custodian under the Maryland Uniform Transfers to Minors Act.
On payment of a prize in accordance with this section, the Director is discharged of all liability.
A prize winner shall claim a prize within 182 days after the drawing in which the prize is won.
Except as provided in paragraph (3) of this subsection, the Director shall keep an unclaimed prize:
for 182 days after the drawing in which the prize is won, for payment of the winner; and
then in an unclaimed prize fund for use for other prizes.
For a game that the Agency designates as a bonus game or drawing and that is not a daily or weekly State lottery drawing, the period for claiming a prize may differ from the period set in paragraph (2) of this subsection.
Unless otherwise specifically provided by the laws of the State, and except for prizes paid for any multistate lottery game, the State and every officer, department, agency, board, commission, or other unit of State government may not raise the defense of sovereign immunity in the courts of the State in an action in contract brought by an annuitant or prize winner that is based on the liability of the State to pay an annuitant or prize winner the prize that the annuitant is entitled to receive in accordance with this subtitle and any regulations adopted under this subtitle.
Notwithstanding any other provision of law, the State may raise the defense of sovereign immunity to a contract action brought by an annuitant or prize winner of any multistate lottery game, for any claim that exceeds $200,000.
A State lottery ticket or share may not be bought by and a prize may not be given to:
an officer or employee of the Agency; or
an individual who is a spouse, child, parent, or sibling of an officer or employee of the Agency and resides in the principal residence of the officer or employee.
This section does not prohibit:
giving a State lottery ticket or share as a gift;
buying a State lottery ticket or share as a gift for a minor; or
the Agency from directly selling any State lottery ticket to the public as provided in § 9–111(d) of this subtitle.
Except as otherwise provided in this section, a person or governmental unit may not:
hold itself out to the public as a State lottery sales agent without being licensed by the Agency to act as a licensed agent;
unless a licensed agent or employee of a licensed agent, sell a State lottery ticket or share;
sell or purchase:
a State lottery ticket or share at any price other than the price that the regulations of the Agency set; or
the prize validated for payment by the Agency;
sell a State lottery ticket or share to a minor;
knowingly present a counterfeit or altered State lottery ticket or share for payment;
knowingly transfer a counterfeit or altered State lottery ticket or share to another person to present for payment; or
knowingly purchase a State lottery ticket or share from another person with the intent to deceive or circumvent the payment of prize winnings to the State, in accordance with:
§ 11–616(b) of the Criminal Procedure Article;
§ 10–113.1(b) of the Family Law Article;
§ 3–307 of the State Finance and Procurement Article; or
§ 10–905(c)(3) of the Tax – General Article.
Unless a person receives written authorization from the Agency, the person may not use the term “Maryland State lottery”, “Maryland lottery”, “State lottery”, “Maryland State Lottery Agency”, “Maryland State Lottery and Gaming Control Agency”, “Maryland State Lottery Commission”, “Maryland State Lottery and Gaming Control Commission”, or any variation of these terms in the title or name of a charitable or commercial enterprise, product, or service.
A licensed agent may not fail to report, as required by the Internal Revenue Service or the Agency, income tax information relating to holders of winning lottery tickets.
For prizes of over $600, a licensed agent may not fail to determine, through the Agency and prior to paying the prize whether a holder of a winning lottery ticket has been certified under:
§ 11–616(b) of the Criminal Procedure Article;
§ 10–113.1(b) of the Family Law Article; or
§ 3–307 of the State Finance and Procurement Article.
A licensed agent may not pay a prize to a holder of a winning lottery ticket if the Agency has notified the licensed agent that the holder has been certified under:
§ 11–616(b) of the Criminal Procedure Article;
§ 10–113.1 of the Family Law Article; or
§ 3–307 of the State Finance and Procurement Article.
A licensed agent may not:
pay a prize winner less than the lawfully due prize amount;
deceive or conspire with another person to pay less than the lawfully due prize amount to any prize winner;
seek payment or claim reimbursement of a cashing fee for cashing a winning ticket for less than the lawfully due prize amount; or
receive a cashing fee for cashing a winning ticket filed in error.
A person who violates any provision of subsection (b), (c), or (d) of this section is guilty of a misdemeanor and on conviction is subject to a fine not exceeding $2,500 or imprisonment not exceeding 3 years or both.
This subtitle may be cited as the “Maryland State Lottery Law”.