SENATE BILL REPORT

SB 5295

BYSenators Warnke, West, Rasmussen, Vognild, Smitherman, Moore, Tanner, Deccio and Bauer; by request of Washington State Lottery

Changing provisions relating to the lottery.

Senate Committee on Commerce & Labor

Senate Hearing Date(s):January 20, 1987; January 27, 1987

Majority Report:  Do pass.

      Signed by Senators Warnke, Chairman; Smitherman, Vice Chairman; Anderson, Tanner, Vognild, West, Wojahn.

Senate Staff:Patrick Woods (786-7430)

                  January 27, 1987

Senate Committee on Ways & Means

Senate Hearing Date(s):February 26, 1987

Majority Report:  That Substitute Senate Bill No. 5295 be substituted therefor, and the substitute bill do pass.

      Signed by Senators McDermott, Chairman; Gaspard, Vice Chairman; Bauer, Fleming, Moore, Owen, Rasmussen, Talmadge, Vognild, Warnke, Williams, Wojahn.

Minority Report:  Do not pass.

      Signed by Senators Bluechel, Cantu, Craswell, Hayner, McDonald, Zimmerman.

Senate Staff:Cayan Topacio (786-7433)

                  February 27, 1987

AS REPORTED BY COMMITTEE ON WAYS & MEANS, FEBRUARY 26, 1987

BACKGROUND:

The Washington State Lottery was established in 1982 in order to conduct statewide Lottery games in a secure and controlled manner and maximize revenues to the state's general fund.  The Lottery's enabling legislation was amended in 1985 to provide for legislative appropriation of the Lottery's administrative costs.

The Legislative Budget Committee conducted a performance audit of the Lottery in accordance with the Sunset Act.  LBC recommended that the Lottery be continued as a state agency, and that legislative authorization be required in order for the Lottery to participate in multi-state lotteries.  In addition, LBC did not recommend that the agency be rescheduled for review under the Sunset process.

SUMMARY:

The Washington State Lottery is reauthorized and removed from the Sunset schedule with the following modifications:

      --The approval of the Legislature is required prior to participation in any multi-state lottery.

      --Internal references to employees of the Lottery Commission are deleted and referenced as employees of the Director.

      --The penalty for any person under the age of 18 that directly purchases a ticket is changed from a class C felony to a misdemeanor.

      --The ability of the Director to pay any portion or all of the lottery prizes in the form of installments for each respective lottery game is clarified.

      --References to the lottery revolving fund is changed to the lottery administrative account.

The provisions relating to the State Gambling Commission providing services to the Lottery for implementation of the act and the Sunset Clause are both repealed.

Fiscal Note:      none requested

Effective Date:The bill contains an emergency clause and takes effect immediately.

EFFECT OF PROPOSED SUBSTITUTE:

Disposition of prize money unclaimed after six months is changed from the state lottery account to the housing trust fund.  The Washington State Lottery is scheduled to expire July 1, 1991.

Senate Committee - Testified: COMMERCE & LABOR:  Scott Milne, Washington State Lottery

Senate Committee - Testified: WAYS & MEANS:  Evelyn Sun, Washington State Lottery