BILL NUMBER: SCA 4	CHAPTERED  09/21/99

	RESOLUTION CHAPTER   123
	FILED WITH SECRETARY OF STATE   SEPTEMBER 21, 1999
	ADOPTED IN SENATE   SEPTEMBER 9, 1999
	ADOPTED IN ASSEMBLY   SEPTEMBER 7, 1999
	AMENDED IN ASSEMBLY   AUGUST 19, 1999
	AMENDED IN ASSEMBLY   AUGUST 17, 1999
	AMENDED IN SENATE   JUNE 17, 1999

INTRODUCED BY   Senator McPherson

                        FEBRUARY 24, 1999

   Senate Constitutional Amendment No. 4--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 charitable raffles.



	LEGISLATIVE COUNSEL'S DIGEST


   SCA 4, McPherson.  Lotteries:  charitable raffles.
   (1) The California Constitution generally provides that the
Legislature has no power to authorize lotteries and shall prohibit
the sale of lottery tickets in the state, but specifically provides
for the operation of the California State Lottery and empowers the
Legislature to authorize cities and counties to provide for bingo
games conducted for charitable purposes.
   This measure would provide that, notwithstanding the general
constitutional prohibition against lotteries, the Legislature may
authorize private, nonprofit, eligible organizations 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 at least 90% of the gross receipts
from the raffle go directly to beneficial or charitable purposes in
California, and 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.  This measure
would also state findings and declarations of the Legislature, as
specified.
   (2) The California Constitution provides that the Legislature may,
by 2/3 vote of each house of the Legislature, propose an amendment
or revision of the Constitution, and that a proposed amendment or
revision shall be submitted to electors and if approved by a majority
of votes thereon takes effect the day after the election unless the
measure provides otherwise.
   This measure would provide that, notwithstanding this requirement,
the Legislature may amend the percentage of a raffle's gross
receipts required by this measure to be dedicated to beneficial or
charitable purposes by means of a statute that is passed by a 2/3
vote of each house of the Legislature and signed by the Governor.




   Resolved by the Senate, the Assembly concurring, That the
Legislature of the State of California at its 1999-2000 Regular
Session commencing on the seventh day of December 1998, 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:
  First--That Section 19 of Article IV 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) Notwithstanding subdivision (a), there is authorized the
establishment of a California State Lottery.
   (e) The Legislature has no power to authorize, and shall prohibit,
casinos of the type currently operating in Nevada and New Jersey.
   (f) 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.
  Second--That the Legislature finds and declares that it is the
public policy of the State to encourage beneficial or charitable
works by private nonprofit organizations; that raffles represent a
legitimate and reasonable fundraising mechanism to enable these
organizations to perform such works or to support others in
performing such works; and that the purpose of this measure is to
increase funding of beneficial or charitable works by enabling
private nonprofit organizations to conduct raffles subject to
reasonable regulation by the Legislature.