FINAL BILL REPORT

SHB 26

PARTIAL VETO

                                  C 511 L 87

BYHouse Committee on Commerce & Labor (originally sponsored by Representatives Wang, Patrick, Sayan, Fisch, Walker, H. Sommers and R. King; by request of  Washington State Lottery)

Changing provisions relating to the lottery.

House Committe on Commerce & Labor

Senate Committee on Commerce & Labor

SYNOPSIS AS ENACTED

BACKGROUND:

The legislature established the state lottery in 1982.  A five- member commission, appointed by the governor with the consent of the Senate, is responsible for adopting rules governing the establishment and operation of the lottery.  A director, also appointed by the governor, supervises and administers the operation of the lottery, including the licensing of agents.

A licensee who sells a lottery ticket to a person under 18 is guilty of a misdemeanor.  A person under 18 who purchases a ticket may not receive a prize, but no other penalty is imposed.  Purchases of tickets to be used as gifts to persons under 18 are permitted.

Not less than 45 percent of the gross annual revenue from the lottery must be paid out in prizes.  Prizes unclaimed after a 180-day claim period are to be used for additional prizes.  Gross revenues are also used for transfers to the General Fund, agent compensation, purchase and promotion of games and game-related services, and administrative costs.  Only administrative costs are appropriated.  The lottery transferred $72.2 million to the General Fund in fiscal year 1986, and $273 million in the first four fiscal years of operation.

The enabling legislation provided for automatic termination of the lottery in five years, July 1, 1987, unless extended by law, and mandated a study by the Legislative Budget Committee (LBC) to evaluate the effectiveness of the chapter.  The LBC recommended that the lottery be continued as a state agency and that any reenabling legislation contain specific legislative intent on the state's participation in any multi-state lottery.

SUMMARY:

The state lottery is reauthorized for an additional five years, until July 1, 1992, and the Legislative Budget Committee shall again evaluate the effectiveness of the lottery.

Approval of the legislature is required before the lottery may enter any agreement with other state lotteries to conduct shared games.

A person under 18 directly purchasing a ticket is guilty of a misdemeanor.

The requirement that the lottery pay out not less than 45 percent of the gross annual revenue in prizes is changed to a requirement that the lottery pay out prizes equal to 45 percent.  Costs of the purchase and promotion of lottery games and game-related services are to be appropriated.

When issuing a license to sell tickets, the director must provide written notice to the affected local governments.  If the appropriate executive body notifies the lottery within 30 days that the location is not in conformance with local zoning codes, the director must deny the license.

VOTES ON FINAL PASSAGE:

      House 69  27

      Senate    30    19(Senate amended)

      House 69  27(House concurred)

EFFECTIVE:May 19, 1987

Partial Veto Summary:  The language requiring appropriation of costs of purchase and promotion of lottery games and game-related services and notification of local governments of license issuance is vetoed.  Current law providing that the lottery pay out not less than 45 percent in prizes is restored.  (See VETO MESSAGE)