Washington State House of Representatives Office of Program Research	BILL ANALYSIS
Commerce & Labor Committee

HB 2624

Brief Description:  Allowing the lottery commission to participate in a shared game lottery.

Sponsors:  Representatives Conway, Clements, Wood, Edwards and Hunt; by request of Governor Locke.

Brief Summary of Bill

$Authorizes the Lottery Commission to enter into agreements with other states for a shared lottery.

$Requires shared-game lottery revenues be applied exclusively to support of the common schools.

$Provides for a transfer of shared‑game lottery revenues into the student achievement fund, the education construction fund, and the general fund.

Hearing Date:  2/4/02

Staff:  Sydney Forrester (786‑7120).

Background:

The Washington State Lottery Commission is authorized to regulate and conduct lottery games for the purpose of generating state funds to be used for the general welfare of the people.  The commission adopts rules governing the number and type of games, price of tickets, number and size of prizes, location of sales, commission paid to sales agents, and other matters necessary for the efficient and economical operation of the lottery.  Legislative approval is required before the commission may enter into agreements with other states for shared games.

Under Initiative 728, contributions to the Student Achievement Fund and the Education Construction Fund began July 1, 2001.

Summary of Bill:

The commission is granted approval to enter into agreements with other states for a shared‑game lottery.  A shared‑game lottery account is created for receipt of all revenues from the sale of shared‑game tickets.

Findings are made recognizing the potential for reduced revenues from the sale of state lottery tickets and the resulting decrease in contributions from the existing lottery account to the student achievement fund and the education construction fund under I‑728.  Provisions are made to ensure the student achievement fund and the education construction fund collectively receive a minimum of $102 million dollars annually.

Beginning in fiscal year 2003, if the amount of state lottery revenues available to the student achievement and education construction funds drops below $102 million dollars, the commission must transfer moneys from the shared‑game lottery account into those funds in an amount to bring the total annual contribution up to $102 million dollars.  The remaining net revenues in the shared‑game account, after transfer, must be deposited in the general fund for support of K‑12 schools.

Rules Authority:  The bill does not contain provisions addressing the rule‑making powers of an agency.

Appropriation:  None.

Fiscal Note:  Not requested.

Effective Date:  Ninety days after adjournment of session in which bill is passed.