S-693                 _______________________________________________

                                                   SENATE BILL NO. 5099

                        _______________________________________________

State of Washington                              50th Legislature                              1987 Regular Session

By Senator Lee

Read first time 1/15/87 and referred to Committee on Ways & Means.

AN ACT Relating to extending the state lottery to fund a budget reserve; amending RCW 67.70.240 and 67.70.900; adding a new section to chapter 67.70 RCW; declaring an emergency; and providing an effective date.

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

        Sec. 1.  Section 24, chapter 7, Laws of 1982 2nd ex. sess. as amended by section 5, chapter 375, Laws of 1985 and RCW 67.70.240 are each amended to read as follows:

          The moneys in the state lottery account shall be used only:  (1) For the payment of prizes to the holders of winning lottery tickets or shares; (2) for purposes of making deposits into the reserve account created by RCW 67.70.250 and into the lottery administrative account created by RCW 67.70.260;  (3) for purposes of making deposits into the ((state's general fund)) budget reserve fund created by section 2 of this act; (4) for the purchase and promotion of lottery games and game-related services; and (5) for the payment of agent compensation.

          The office of financial management shall require the allotment of all expenses paid from the account and shall report to the ways and means committees of the senate and house of representatives any changes in the allotments.

NEW SECTION. Sec. 2.  A new section is added to chapter 67.70 RCW to read as follows:

          The budget reserve fund is created in the state treasury.  The net revenues of the state lottery from July 1, 1987, to July 1, 1989, shall be deposited into this fund.  Any appropriation from this fund requires approval of two-thirds of the members elected to each house of the legislature and a declaration of emergency in such legislation.

        Sec. 3.  Section 34, chapter 7, Laws of 1982 2nd ex. sess. and RCW 67.70.900 are each amended to read as follows:

          This chapter shall expire July 1, ((1987)) 1989, unless extended by law.  The legislative budget committee shall evaluate the effectiveness of this chapter.  The final report of the evaluation shall be available to the legislature at least six months prior to the scheduled termination date.  The report shall include, but is not limited to, objective findings of fact, conclusions, and recommendations as to continuation, modification, or termination of this chapter.

NEW SECTION. Sec. 4.     This act is necessary for the immediate preservation of the public peace, health, and safety, the support of the state government and its existing public institutions, and shall take effect July 1, 1987.