Maryland Code § SG-9-119

Section SG-9-119
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(a) 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:
(1) on the due date that the Agency sets; or
(2) at the times and within the intervals prescribed by Agency
regulations.
(b) (1) (i) 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.

(ii) 1. A licensed agent may commingle proceeds from the
sale of State lottery tickets or shares with business receipts of the licensed agent.
2. 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.
(iii) 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.
(iv) The Director may adjust the time, interval, or method of
collection for collections of proceeds of any licensed agent.
(v) 1. 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.
2. 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.
(2) The Director may require any or all licensed agents to submit to
the Director or a designee of the Director a report that:
(i) is in the form that the Director requires; and
(ii) gives the information that the Director requires as to the
transactions in and receipts from the sale of State lottery tickets or shares.
(c) (1) The Agency may impose a service charge if the payor bank
dishonors:
(i) a check that is given to the Agency by a licensed agent; or
(ii) 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.
(2) The service charge under paragraph (1) of this subsection shall be
sufficient to cover the Agency's costs associated with the dishonored return.

(3) The Director shall adopt regulations specifying the costs and the
methodology for determining the costs that are associated with a dishonored return.
(4) 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.
(d) A licensed agent shall be charged:
(1) 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
(2) 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.
(e) (1) 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:
(i) is a lien on the property of that licensed agent; and
(ii) subject to paragraph (5) of this subsection, has the same
effect as a judgment lien.
(2) The Agency shall:
(i) file a notice of the lien with the clerk of the circuit court for
the county where the property is located; and
(ii) mail a copy of the notice to the business address of the
licensed agent.
(3) The clerk of court promptly shall enter in the judgment docket of
the court:
(i) the name of the licensed agent;
(ii) the amount of the lien; and
(iii) the date of the lien.

(4) 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.
(5) Until an officer of a court levies on personal property, the lien is
not effective against an innocent buyer for value.
§9-120. IN EFFECT
(a) The Comptroller shall distribute, or cause to be distributed, the State
Lottery Fund to pay:
(1) 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
(2) 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.
(b) (1) By the end of the month following collection, the Comptroller
shall deposit, cause to be deposited, or pay:
(i) 1. 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;
2. 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:
A. $34,900,000 into the Camden Yards Football Sports
Facility Supplemental Financing Fund established under § 10-652.1 of the Economic
Development Article; and
B. $40,900,000 into the Camden Yards Baseball Sports
Facility Supplemental Financing Fund established under § 10-652.2 of the Economic
Development Article;
3. 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;
4. 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:
A. $45,000,000 into the Camden Yards Football Sports
Facility Supplemental Financing Fund established under § 10-652.1 of the Economic
Development Article; and
B. $41,640,000 into the Camden Yards Baseball Sports
Facility Supplemental Financing Fund established under § 10-652.2 of the Economic
Development Article; and
5. 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:
A. $45,000,000 into the Camden Yards Football Sports
Facility Supplemental Financing Fund established under § 10-652.1 of the Economic
Development Article; and
B. $45,000,000 into the Camden Yards Baseball Sports
Facility Supplemental Financing Fund established under § 10-652.2 of the Economic
Development Article;
(ii) 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;
(iii) 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;
(iv) after June 30, 2021, 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, an amount equal to $17,000,000
in each fiscal year until the bonds issued for a racing facility have matured;
(v) 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;
(vi) 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;
(vii) 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;
(viii) 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;
(ix) 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;
(x) 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:
1. for fiscal year 2023, an amount equal to $10,000,000;
and
2. 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;

(xi) 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:
1. for fiscal year 2025, an amount equal to $27,000,000
in each fiscal year; and
2. for each fiscal year thereafter, an amount equal to
$17,000,000 in each fiscal year;
(xii) after June 30, 2024, 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, $27,000,000;
(xiii) 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;
(xiv) 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
(xv) 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.
(2) 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.

(3) 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:
(i) Laurel Race Course is no longer used for live racing or
training; or
(ii) backstretch workers employed at Laurel Race Course are
no longer living on the Laurel Race Course property.
(4) (i) 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:
1. health and mental health services;
2. individual and family counseling;
3. drug and alcohol addiction awareness, support, and
treatment;
4. social services;
5. nutrition and wellness programs; and
6. transportation, if necessary, to off-site medical and
wellness services.
(ii) 1. 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:
A. with a history of working with backstretch workers
employed at Laurel Race Course; and
B. that employ Spanish-speaking program staff or
provide translation services for nonnative English speakers.
2. 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.
3. 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.
(c) The regulations of the Agency shall apportion the money in the State
Lottery Fund in accordance with subsection (b) of this section.
§9-120. // EFFECTIVE JUNE 30, 2027 PER CHAPTER 403 OF 2025 //
(a) The Comptroller shall distribute, or cause to be distributed, the State
Lottery Fund to pay:
(1) 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
(2) 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.
(b) (1) By the end of the month following collection, the Comptroller
shall deposit, cause to be deposited, or pay:
(i) 1. 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;
2. 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:
A. $34,900,000 into the Camden Yards Football Sports
Facility Supplemental Financing Fund established under § 10-652.1 of the Economic
Development Article; and
B. $40,900,000 into the Camden Yards Baseball Sports
Facility Supplemental Financing Fund established under § 10-652.2 of the Economic
Development Article;

3. 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;
4. 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:
A. $45,000,000 into the Camden Yards Football Sports
Facility Supplemental Financing Fund established under § 10-652.1 of the Economic
Development Article; and
B. $41,640,000 into the Camden Yards Baseball Sports
Facility Supplemental Financing Fund established under § 10-652.2 of the Economic
Development Article; and
5. 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:
A. $45,000,000 into the Camden Yards Football Sports
Facility Supplemental Financing Fund established under § 10-652.1 of the Economic
Development Article; and
B. $45,000,000 into the Camden Yards Baseball Sports
Facility Supplemental Financing Fund established under § 10-652.2 of the Economic
Development Article;
(ii) 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;
(iii) 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;

(iv) after June 30, 2021, 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, an amount equal to $17,000,000
in each fiscal year until the bonds issued for a racing facility have matured;
(v) 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;
(vi) 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;
(vii) 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;
(viii) 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;
(ix) 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;
(x) 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:
1. for fiscal year 2023, an amount equal to $10,000,000;
and

2. 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;
(xi) 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:
1. for fiscal year 2025, an amount equal to $27,000,000
in each fiscal year; and
2. for each fiscal year thereafter, an amount equal to
$17,000,000 in each fiscal year;
(xii) after June 30, 2024, 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, $27,000,000;
(xiii) 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; and
(xiv) 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 (xiii) of this paragraph.
(2) 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.
(c) The regulations of the Agency shall apportion the money in the State
Lottery Fund in accordance with subsection (b) of this section.

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