SENATE BILL REPORT

SB 6491

BYSenators McDonald, Warnke, Bailey, Fleming, Lee, Kiskaddon, von Reichbauer, Wojahn, Bender, Johnson, Niemi, Smith, Zimmerman, Smitherman, Conner, Talmadge, Deccio, Stratton and Bauer

Authorizing unclaimed lottery prizes to be deposited in the housing trust fund.

Senate Committee on Ways & Means

Senate Hearing Date(s):February 5, 1988; February 8, 1988

Majority Report:  That Substitute Senate Bill No. 6491 be substituted therefor, and the substitute bill do pass.

      Signed by Senators McDonald, Chairman; Craswell, Vice Chairman; Deccio, Fleming, Johnson, Lee, Moore, Newhouse, Saling, Smith, Talmadge, Vognild, Warnke, Williams, Wojahn, Zimmerman.

Senate Staff:Stan Pynch (786-7715)

                  February 9, 1988

AS REPORTED BY COMMITTEE ON WAYS & MEANS, FEBRUARY 8, 1988

BACKGROUND:

Unclaimed prizes from state lottery games are retained in the state lottery account for the person entitled to the prize for 180 days after the drawing in which the prize is won, or after the end of the game for instant prizes.  If no claim is made for it within this time, the prize is retained by the Lottery Commission for further use as prizes in future games.  Unclaimed prizes are presently estimated to total approximately $2.5 million per year.  The amount will vary depending on the number of games, type of games, and other factors affecting lottery winnings.

SUMMARY:

The original bill was not considered.

EFFECT OF PROPOSED SUBSTITUTE:

Fifty percent of unclaimed prizes, in an amount not to exceed $1 million in any fiscal year, is deposited quarterly in the Washington housing trust fund.  The remaining money from unclaimed prizes is retained in the state lottery account for further use as prizes.

Money deposited in the housing trust fund from unclaimed prizes must be used by the Department of Community Development to provide funding for eligible housing activities to benefit the homeless.  Eligible activities include but are not limited to the funding of shelters and transitional and permanent housing for homeless families and individuals.

Appropriation:    none

Revenue:    none

Fiscal Note:      available

Senate Committee - Testified: Maureen Howard, Washington State Coalition for the Homeless (for); Jim Martin, Office of Financial Management (against)