HOUSE BILL REPORT

HB 1812

BYRepresentatives Zellinsky, Ferguson, Haugen, Chandler, Crane, Betrozoff, Dellwo, Dorn, Winsley, Lux, Silver, P. King, Fisher, Butterfield, Nelson, Cooper, Rayburn, Nutley, Beck, Hine, Jones, Sayan, Meyers, Cantwell, Jesernig, Grant, Schmidt, Patrick, Hankins, Walk, Heavey, Doty, Vekich, J. Williams, D. Sommers,  Baugher, Belcher, Scott, Spanel, Hargrove, Rasmussen, Cole, Ebersole, Kremen, May, Taylor, Moyer, Ballard, Padden, Brough, Braddock, Valle, Bristow, Armstrong, Walker, Fuhrman, B. Williams, Day, Basich, Pruitt and Todd

Prohibiting the use of state lottery funds to provide food, refreshments, entertainment, or any cash or in-kind gratuity other than lottery prizes.

House Committe on Commerce & Labor

Majority Report:  The substitute bill be substituted therefor and the substitute bill do pass.  (11)

      Signed by Representatives Wang, Chair; Cole, Vice Chair; Fisher, Jones, R. King, O'Brien, Patrick, Sanders, Sayan, C. Smith and Walker.

House Staff:Joan Elgee (786-7166)

AS REPORTED BY COMMITTEE ON COMMERCE & LABOR FEBRUARY 3, 1988

BACKGROUND:

All revenues from the sale of lottery tickets are deposited into the state lottery account.  Moneys in the account are used for payment of prizes, deposits into the general fund, purchase and promotion of lottery games and game-related services, payment of agent compensation, and payments into the lottery administrative account.  Expenses for promotion are allotted but not appropriated.

Most recently in December 1987, the lottery held a lunch for lottery winners, in which some promotional funds were spent.

SUMMARY:

SUBSTITUTE BILL:  The lottery shall not provide lottery prize winners with refreshments, entertainment or any other cash or in-kind gratuity from any source, other than the prize award.

SUBSTITUTE BILL COMPARED TO ORIGINAL:  Language which would restrict expenditures for persons other than prize winners (e.g., employees and retailers) is deleted.

The expenditure restriction is clarified and modified to prohibit the lottery from providing cash or in-kind gratuities from any source, rather than limited to public funds.

Fiscal Note:      Requested February 1, 1988.

House Committee ‑ Testified For:    Representative Paul Zellinsky, Prime Sponsor.

(NEUTRAL):  Evelyn Sun, Director, Lottery Commission.

House Committee - Testified Against:      None Presented.

House Committee - Testimony For:    The recent lunch held by the lottery in which $8000 in public funds was spent resulted in much negative publicity.  Although the problem has been resolved, legislation is needed.

(NEUTRAL):  The luncheon was intended to be a promotional event and an opportunity to do a grand prize drawing, but in hindsight had a negative impact.

House Committee - Testimony Against:      None Presented.