BILL ANALYSIS Ó SB 817 Page 1 Date of Hearing: July 3, 2013 ASSEMBLY COMMITTEE ON APPROPRIATIONS Mike Gatto, Chair SB 817 (Committee on Governmental Organization) - As Introduced: March 14, 2013 Policy Committee: Governmental Organization Vote: 15 - 0 Urgency: Yes State Mandated Local Program: No Reimbursable: SUMMARY This bill allows the independent contractor hired by the California State Lottery to witness out-of- state drawings and inspect the drawing equipment over live audio and video feed, rather than in person. FISCAL EFFECT This should result in approximately $140,000 in savings annually for the California State Lottery. [State Lottery Fund] COMMENTS Purpose . The Lottery Act currently requires that, except for computer automated drawings, Lottery employees and independent contractors must personally witness each draw and inspect draw equipment both before and after each drawing. This bill, sponsored by the Lottery, would allow the office to operate more efficiently without compromising the security and integrity of the game. 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 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 SB 817 Page 2 jurisdictions that participate in Mega Millions and Powerball multi-state lotteries do not require the physical presence of their own employees and independent contractors at out-of-state draws. Analysis Prepared by : Julie Salley-Gray / APPR. / (916) 319-2081