(A) All proceeds from the sale of the lottery game tickets or shares constitute a trust fund until paid to the commission either directly or through the commission's authorized collection representative. A lottery retailer and officers of a lottery retailer's business have a fiduciary duty to preserve and account for lottery proceeds, and a lottery retailer is personally liable for all proceeds. Proceeds include unsold instant tickets received by a lottery retailer and cash proceeds of the sale of lottery products, net of allowable sales commissions and credit for lottery prizes sold or paid to winners by a lottery retailer. Sales proceeds and unused instant tickets must be delivered to the commission or its authorized collection representative upon demand.
(B) The commission shall require a lottery retailer to place all lottery proceeds due the commission in accounts in institutions insured by the Federal Deposit Insurance Corporation (FDIC) no later than the close of the next banking day after the date of their collection by the lottery retailer until the date they are paid over to the commission. At the time of the deposit, lottery proceeds are considered the property of the commission, and a lottery retailer is personally liable for those proceeds due the commission. The commission may require a lottery retailer to establish a single separate electronic funds transfer account where available for the purpose of receiving monies from ticket or share sales, making payments to the commission, and receiving payments for the commission. Unless otherwise authorized in writing by the commission, each lottery retailer shall establish a separate bank account for lottery proceeds which must be kept separate and apart from all other funds and assets, and must not be commingled with any other funds or assets. A lottery retailer, upon the deposit of lottery proceeds in excess of insurance coverage by the FDIC, shall furnish an indemnity bond from a responsible surety company authorized to do business in this State in an amount sufficient to protect the State against loss in the event of insolvency or liquidation of the institution or for another cause. A lottery retailer, instead of the indemnity bond, may pledge as collateral for the deposits, obligations of the United States, obligations fully guaranteed both as to principal and interest by the United States, obligations of the Federal National Mortgage Association, the Federal Home Loan Bank, Federal Farm Credit Bank, the Federal Home Loan Mortgage Corporation, or general obligations of this State or a political subdivision of it. The State Treasurer shall exercise prudence in accepting the securities listed as collateral. The surety or collateral must be filed with the State Treasurer at time of deposit.
(C) Proceeds from the sale of lottery game tickets or shares received by a lottery retailer who becomes insolvent or dies insolvent, are due the commission from the person or his estate in preference over all debts or demands.
(D) A lottery retailer is not required to pay for lottery tickets or shares until the tickets or shares have been activated by 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.