BILL REQ. #:  H-2334.1 

Read first time 03/02/09.   Referred to Committee on Ways & Means.

     AN ACT Relating to allowing the state lottery to enter into agreements to conduct multistate shared games; and amending RCW 67.70.040, 67.70.044, and 67.70.340.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

Sec. 1   RCW 67.70.040 and 2006 c 290 s 3 are each amended to read as follows:
     The commission shall have the power, and it shall be its duty:
     (1) To adopt rules governing the establishment and operation of a state lottery as it deems necessary and desirable in order that such a lottery be initiated at the earliest feasible and practicable time, and in order that such lottery produce the maximum amount of net revenues for the state consonant with the dignity of the state and the general welfare of the people. Such rules shall include, but shall not be limited to, the following:
     (a) The type of lottery to be conducted which may include the selling of tickets or shares, but such tickets or shares may not be sold over the internet. The use of electronic or mechanical devices or video terminals which allow for individual play against such devices or terminals shall be prohibited. An affirmative vote of sixty percent of both houses of the legislature is required before offering any game allowing or requiring a player to become eligible for a prize or to otherwise play any portion of the game by interacting with any device or terminal involving digital, video, or other electronic representations of any game of chance, including scratch tickets, pull-tabs, bingo, poker or other cards, dice, roulette, keno, or slot machines. ((Approval of the legislature shall be required before entering any agreement with other state lotteries)) The state lottery may enter into agreements to conduct multistate shared games;
     (b) The price, or prices, of tickets or shares in the lottery;
     (c) The numbers and sizes of the prizes on the winning tickets or shares;
     (d) The manner of selecting the winning tickets or shares, except as limited by (a) of this subsection;
     (e) The manner and time of payment of prizes to the holder of winning tickets or shares which, at the director's option, may be paid in lump sum amounts or installments over a period of years;
     (f) The frequency of the drawings or selections of winning tickets or shares. Approval of the legislature is required before conducting any online game in which the drawing or selection of winning tickets occurs more frequently than once every twenty-four hours;
     (g) Without limit as to number, the type or types of locations at which tickets or shares may be sold;
     (h) The method to be used in selling tickets or shares, except as limited by (a) of this subsection;
     (i) The licensing of agents to sell or distribute tickets or shares, except that a person under the age of eighteen shall not be licensed as an agent;
     (j) The manner and amount of compensation, if any, to be paid licensed sales agents necessary to provide for the adequate availability of tickets or shares to prospective buyers and for the convenience of the public;
     (k) The apportionment of the total revenues accruing from the sale of lottery tickets or shares and from all other sources among: (i) The payment of prizes to the holders of winning tickets or shares, which shall not be less than forty-five percent of the gross annual revenue from such lottery, (ii) transfers to the lottery administrative account created by RCW 67.70.260, and (iii) transfer to the state's general fund. Transfers to the state general fund shall be made in compliance with RCW 43.01.050;
     (l) Such other matters necessary or desirable for the efficient and economical operation and administration of the lottery and for the convenience of the purchasers of tickets or shares and the holders of winning tickets or shares.
     (2) To ensure that in each place authorized to sell lottery tickets or shares, on the back of the ticket or share, and in any advertising or promotion there shall be conspicuously displayed an estimate of the probability of purchasing a winning ticket.
     (3) To amend, repeal, or supplement any such rules from time to time as it deems necessary or desirable.
     (4) To advise and make recommendations to the director for the operation and administration of the lottery.

Sec. 2   RCW 67.70.044 and 2002 c 349 s 2 are each amended to read as follows:
     (1) Pursuant to RCW 67.70.040(1)(a), the ((commission)) state lottery may enter into ((the)) agreements to conduct multistate ((agreement establishing a)) shared games ((lottery known as "The Big Game," that was entered into by party state lotteries in August 1996 and subsequently amended)).
     (2) The multistate shared games ((lottery)) account is created as a separate account outside the state treasury. The account is managed, maintained, and controlled by the commission and consists of all revenues received from the sale of multistate shared games ((lottery)) tickets or shares, and all other moneys credited or transferred to it from any other fund or source under law. The account is allotted according to chapter 43.88 RCW.

Sec. 3   RCW 67.70.340 and 2005 c 369 s 4 are each amended to read as follows:
     (1) The legislature recognizes that ((creating a)) multistate shared games ((lottery)) could result in less revenue being raised by the existing state lottery ticket sales. The legislature further recognizes that the two funds most impacted by this potential event are the student achievement fund and the education construction account. Therefore, it is the intent of the legislature to use some of the proceeds from ((the)) multistate shared games ((lottery)) to make up the difference that the potential state lottery revenue loss would have on the student achievement fund and the education construction account. The legislature further intends to use some of the proceeds from ((the)) multistate shared games ((lottery)) to fund programs and services related to problem and pathological gambling.
     (2) The student achievement fund and the education construction account are expected to collectively receive one hundred two million dollars annually from state lottery games other than ((the)) multistate shared games ((lottery)). For fiscal year 2003 and thereafter, if the amount of lottery revenues earmarked for the student achievement fund and the education construction account is less than one hundred two million dollars, the ((commission)) state lottery, after making the transfer required under subsection (3) of this section, must transfer sufficient moneys from revenues derived from ((the)) multistate shared games ((lottery)) into the student achievement fund and the education construction account to bring the total revenue up to one hundred two million dollars. The funds transferred from the multistate shared games ((lottery)) account under this subsection must be divided between the student achievement fund and the education construction account in a manner consistent with RCW 67.70.240(3).
     (3)(a) The ((commission)) state lottery shall transfer, from revenue derived from ((the)) multistate shared games ((lottery)), to the problem gambling account created in RCW 43.20A.892, an amount equal to the percentage specified in (b) of this subsection of net receipts. For purposes of this subsection, "net receipts" means the difference between (i) revenue received from the sale of lottery tickets or shares and revenue received from the sale of multistate shared games ((lottery)) tickets or shares; and (ii) the sum of payments made to winners.
     (b) In fiscal year 2006, the percentage to be transferred to the problem gambling account is one-tenth of one percent. In fiscal year 2007 and subsequent fiscal years, the percentage to be transferred to the problem gambling account is thirteen one-hundredths of one percent.
     (4) The remaining net revenues, if any, in the multistate shared games ((lottery)) account after the transfers pursuant to this section shall be deposited into the general fund.