(A) The commission shall establish a fidelity fund separate from all other funds and shall assess each lottery retailer a one-time fee not to exceed one hundred dollars for each sales location. Monies deposited into the fund may be used to cover losses the commission may experience due to nonfeasance, misfeasance, or malfeasance of a lottery retailer. The monies may be invested by the commission pursuant to state investment practices. All earnings attributable to the investments accrue to the fund. In addition, the funds may be used to purchase blanket bonds covering the commission against losses from all lottery retailers. At the end of each fiscal year, the commission shall pay to the Education Lottery Account any amount in the fidelity fund which exceeds five hundred thousand dollars, and the funds paid must be treated as net proceeds from the lottery.
(B) A reserve account may be established as a general operating expense to cover amounts considered uncollectible from a lottery retailer. The commission shall establish procedures for minimizing losses that may be experienced by reason of nonfeasance, misfeasance, or malfeasance of a lottery retailer, and shall exercise and exhaust all available options in the procedures before amounts are written off to this account.
(C) The commission may require a lottery retailer to post an appropriate bond, as determined by the commission, using an insurance company acceptable to the commission. The amount must not exceed the applicable district sales average of lottery game tickets for two billing periods.
(D)(1) In its discretion, the commission may allow a lottery retailer to deposit and maintain with the commission securities that are interest bearing or accruing. Securities eligible pursuant to this item are limited to:
(a) certificates of deposit issued by solvent banks or savings associations organized and existing under the laws of this State or under the laws of the United States;
(b) United States bonds, notes, and bills for which the full faith and credit of the United States is pledged for the payment of principal and interest; and
(c) federal agency securities by an agency or instrumentality of the United States government.
(2) The securities must be held in trust in the name of the commission.
HISTORY: 2001 Act No. 59, Section 2.
Structure South Carolina Code of Laws
Chapter 150 - South Carolina Education Lottery Act
Section 59-150-10. Short title.
Section 59-150-20. Definitions.
Section 59-150-30. Lottery Commission created; management performance audit.
Section 59-150-50. Duties of the board.
Section 59-150-60. Powers of the commission.
Section 59-150-80. Executive director; internal auditor.
Section 59-150-90. Executive director, duties, and powers; prohibited campaign activities.
Section 59-150-110. Lottery Retailer Advisory Board.
Section 59-150-120. Assistance to small and minority businesses; annual report.
Section 59-150-165. State and national criminal background investigation.
Section 59-150-200. Lottery retailer rental payments.
Section 59-150-210. Sales restrictions.
Section 59-150-220. Instant tickets; theft, loss, or damage.
Section 59-150-230. Lottery prizes.
Section 59-150-270. False statements to commission, false entries in records.
Section 59-150-290. Compliance with Consolidated Procurement Code.
Section 59-150-300. Review board actions.
Section 59-150-320. Lottery finances.
Section 59-150-325. Education Lottery Oversight Committee.
Section 59-150-330. Set off of certain debts against prizes; definitions; remedies.
Section 59-150-340. Education Lottery Account.
Section 59-150-350. Education Lottery Account management.
Section 59-150-355. Education lottery appropriations and uses.
Section 59-150-356. Use of Education Lottery funds for technology.
Section 59-150-365. South Carolina Workforce Industry Needs Scholarship.
Section 59-150-370. HOPE Scholarships; eligibility; administration; reporting requirement.
Section 59-150-375. Scholarships for visual or hearing impaired or multi-handicapped students.
Section 59-150-380. Educational Lottery Teaching Scholarship Grants Program.
Section 59-150-390. Primary and secondary technology funding.