BILL NUMBER: SCA 12 CHAPTERED BILL TEXT CHAPTER 143 FILED WITH SECRETARY OF STATE SEPTEMBER 17, 2008 PASSED THE SENATE SEPTEMBER 16, 2008 PASSED THE ASSEMBLY SEPTEMBER 16, 2008 AMENDED IN SENATE SEPTEMBER 15, 2008 AMENDED IN SENATE JUNE 18, 2007 INTRODUCED BY Senator Perata MAY 21, 2007 A resolution to propose to the people of the State of California an amendment to the Constitution of the State, by amending Section 19 of Article IV thereof, relating to the California State Lottery. LEGISLATIVE COUNSEL'S DIGEST SCA 12, Perata. California State Lottery. The California Constitution authorizes a California State Lottery, and the California State Lottery Act of 1984, enacted by initiative, provides for its operation and administration by the California State Lottery Commission and the Director of the California State Lottery, with certain limitations. The act declares that its purpose is to provide additional moneys to benefit education. This measure would provide that an additional purpose of the California State Lottery is to provide funds for other public purposes. The measure would authorize the Legislature to obtain moneys for the purposes of the California State Lottery through the sale of future revenues of the California State Lottery and rights to receive those revenues to an entity authorized by the Legislature to issue debt obligations for the purpose of funding that purchase. Resolved by the Senate, the Assembly Concurring, That the Legislature of the State of California at its 2007-08 Regular Session commencing on the fourth day of December 2006, two-thirds of the membership of each house concurring, hereby proposes to the people of the State of California, that the Constitution of the State be amended as follows: That Section 19 of Article IV thereof is amended to read: SEC. 19. (a) The Legislature has no power to authorize lotteries, and shall prohibit the sale of lottery tickets in the State. (b) The Legislature may provide for the regulation of horse races and horse race meetings and wagering on the results. (c) Notwithstanding subdivision (a), the Legislature by statute may authorize cities and counties to provide for bingo games, but only for charitable purposes. (d) (1) Notwithstanding subdivision (a), there is authorized the California State Lottery, a lottery to be conducted by the State and operated for the purpose of increasing revenues to provide funds for the support of public education and other public purposes. (2) Notwithstanding any other provision of law or this Constitution to the contrary, the Legislature is hereby authorized to obtain moneys for the purposes of the California State Lottery through the sale of future revenues of the California State Lottery and rights to receive those revenues to an entity authorized by the Legislature to issue debt obligations for the purpose of funding that purchase. (e) The Legislature has no power to authorize, and shall prohibit, casinos of the type currently operating in Nevada and New Jersey. (f) Notwithstanding subdivisions (a) and (e), and any other provision of state law, the Governor is authorized to negotiate and conclude compacts, subject to ratification by the Legislature, for the operation of slot machines and for the conduct of lottery games and banking and percentage card games by federally recognized Indian tribes on Indian lands in California in accordance with federal law. Accordingly, slot machines, lottery games, and banking and percentage card games are hereby permitted to be conducted and operated on tribal lands subject to those compacts. (g) Notwithstanding subdivision (a), the Legislature may authorize private, nonprofit, eligible organizations, as defined by the Legislature, to conduct raffles as a funding mechanism to provide support for their own or another private, nonprofit, eligible organization's beneficial and charitable works, provided that (1) at least 90 percent of the gross receipts from the raffle go directly to beneficial or charitable purposes in California, and (2) any person who receives compensation in connection with the operation of a raffle is an employee of the private nonprofit organization that is conducting the raffle. The Legislature, two-thirds of the membership of each house concurring, may amend the percentage of gross receipts required by this subdivision to be dedicated to beneficial or charitable purposes by means of a statute that is signed by the Governor.