BILL ANALYSIS Ó
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|SENATE RULES COMMITTEE | SB 817|
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CONSENT
Bill No: SB 817
Author: Senate Governmental Organization Committee
Amended: As introduced
Vote: 27 - Urgency
SENATE GOVERNMENTAL ORGANIZATION COMMITTEE : 9-0, 4/23/13
AYES: Wright, Nielsen, Berryhill, Calderon, Cannella, Correa,
De León, Hernandez, Lieu
NO VOTE RECORDED: Galgiani, Padilla
SENATE APPROPRIATIONS COMMITTEE : Senate Rule 28.8
SUBJECT : California State Lottery: drawings
SOURCE : California State Lottery
DIGEST : This bill allows the California State Lottery
(Lottery) to provide for witnessing of out-of-state lottery
drawings via live audio or video.
ANALYSIS :
Existing law:
1.Authorizes, under the California State Lottery Act of 1984
(Lottery Act), the Lottery and provides for its operation and
administration by the California State Lottery Commission and
the Director of the Lottery, with certain limitations. The
Lottery Act provides that none of its provisions may be
changed except to further its purpose by a bill passed by a
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2/3 vote of each house of the Legislature and signed by the
Governor.
2.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:
1.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.
2.Declares that this bill furthers the purposes of the Lottery
Act.
Background
The 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. 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.
FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
Local: No
SUPPORT : (Verified 5/7/13)
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California State Lottery (source)
ARGUMENTS IN SUPPORT : The California 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 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 pre-tests and draws to ensure that the
numbers are selected randomly.
The 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 Lottery believes that the bill will save the state
approximately $140,000 annually.
MW:nl 5/7/13 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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