BILL ANALYSIS �
Bill No: SB
817
SENATE COMMITTEE ON GOVERNMENTAL ORGANIZATION
Senator Roderick D. Wright, Chair
2013-2014 Regular Session
Staff Analysis
SB 817 Author: Senate Governmental Organization Committee
As Introduced: March 14, 2013
Hearing Date: April 23, 2013
Consultant: Paul Donahue
SUBJECT
State Lottery: Drawings
DESCRIPTION
Allows the California State Lottery to provide for
witnessing of out of state lottery drawings via live audio
or video.
Existing law , the California State Lottery Act of 1984, an
initiative measure, authorizes the California State Lottery
and provides for its operation and administration by the
California State Lottery Commission and the Director of the
California State Lottery, with certain limitations.
Existing law requires that, except for computer automated
drawings, lottery drawings shall be witnessed by an
independent lottery contractor, and that any equipment used
in the drawings is inspected by the independent lottery
contractor and an employee of the lottery both before and
after the drawings.
This bill permits the independent lottery contractor to
witness drawings in person or via live audio and video
feed, and the equipment used in the drawings to be
inspected in person or via live audio and video feed by the
independent lottery contractor and an employee of the
Lottery both before and after the drawings.
SB 817 (Senate G.O. Committee) continued
Page 2
The State Lottery Act of 1984 provides that none of its
provisions may be changed except to further its purpose by
a bill passed by a 2/3 vote of each house of the
Legislature and signed by the Governor. This bill declares
that it furthers the purposes of the Act.
BACKGROUND
The State Lottery Act currently requires Lottery employees
and independent contractors to personally witness each draw
and to inspect draw equipment both before and after each
draw.
In compliance with current law, the Lottery employs two
part-time intermittent employees and independent
contractors who witness and inspect out-of-state draws for
Mega Millions, a multi-state lottery game where draws are
conducted in Georgia two times a week. These employees are
Georgia residents.
The Lottery Commission recently approved California
entering a second multi-state game, Powerball, which
conducts draws two times per week in Florida. Strictly
speaking, the Lottery is therefore required to hire
additional employees and another independent contractor,
who reside in Florida, to witness draws and inspect
equipment in Florida.
Purpose of the bill : The State Lottery is sponsoring this
bill in an effort to operate more efficiently without
compromising security and integrity. According to the
sponsor, having the option to witness and inspect via live
audio and video feed, only, would serve the same purpose as
having Lottery representatives physically present at the
draws, but without the expense and unnecessary duplication
of efforts and repetitive reporting.
The State Lottery states that security measures and written
draw procedures for multi-state games have been fully
reviewed and vetted by the Lottery to ensure their
compliance with California's strict standards. In addition,
out-of-state draws are conducted by highly skilled and
professional employees of the state lottery where the draw
occurs, along with an independent contractor that oversees
draws and inspects all draw equipment. The Lottery plans
to continue to have its own statistician analyze all
SB 817 (Senate G.O. Committee) continued
Page 3
pre-tests and draws to ensure that the numbers are selected
randomly.
The State Lottery further states that this bill will put
California on par with other state lotteries' draw
procedures. It notes that, with the exception of California
and Texas, all the other 42 jurisdictions that participate
in Mega Millions and Powerball do not require the physical
presence of their own employees and independent contractors
at out-of-state draws.
The State Lottery believes that the bill would save the
state about $140,000 annually.
SUPPORT:
California State Lottery (source)
OPPOSE:
None on file
FISCAL COMMITTEE: Senate Appropriations Committee
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