Title GOV — California Gov. Code

Citation of Chapter This Chapter shall be known and may be cited as the California State Lottery Act of 1984.

Purpose and Intent The People of the State of California declare that the purpose of this Act is support for preservation of the rights, liberties and welfare of the people by providing additional monies to benefit education without the imposition of additional or increased taxes…

“Director” “Director” means the Director of the California State Lottery appointed by the Governor pursuant to this Chapter as the chief administrator of the California State Lottery.

“Lottery Commission” or “Commission” “Lottery Commission” or “Commission” means the five members appointed by the Governor pursuant to this Chapter to oversee the Lottery and the Director.

“Lottery Game” “Lottery Game” means any procedure authorized by the commission whereby prizes are distributed among persons who have paid, or who have unconditionally agreed to pay, for tickets or shares which provide the opportunity to win those prizes.

“Lottery Game Retailer” “Lottery Game Retailer” means a person or organization with whom the Lottery Commission may contract for the purpose of selling tickets or shares in Lottery Games to the public.

“Lottery Contractor” “Lottery Contractor” means a person or organization with whom the Lottery has contracted for the purpose of providing goods and services required by the Lottery.

Creation of Commission The California State Lottery Commission is hereby created in state government.

Membership; Appointment; Vacancies; Political Affiliation; Removal (a) The Commission shall consist of five members appointed by the Governor with the advice and consent of the Senate. (b) The members shall be appointed for terms of five years, except of those who are first appoi…

Qualifications of Commissioners At least one of the Commissioners shall have a minimum of five years experience in law enforcement, and at least one of the Commissioners shall be a certified public accountant.

Compensation and Expenses Commissioners shall be compensated at the rate of one hundred dollars ($100) for each day they are engaged in commission business. Commission members shall be reimbursed for actual expenses incurred on commission business, including necessary travel expe…

Annual Selection of Chairperson The Commission shall select annually from its membership a chairperson. The chairperson shall have the power to convene special meetings of the Commission upon 48 hours’ written notice to members of the Commission.

Activities Not Affected Except for the state-operated lottery established by this Chapter, nothing in this Chapter shall be construed to repeal or modify existing State law with respect to the prohibition of casino gambling, punch boards, slot machines, dog racing, video poker or…

Meetings Meetings of the Commission shall be open and public in accordance with the Bagley-Keene Open Meeting Act (Article 9 (commencing with Section 11120) of Chapter 1 of Part 1 of Division 3).

Quorum; Voting A quorum shall consist of three members of the Commission. All decisions of the Commission shall be made by a majority vote of the Commission.

The Commission shall make quarterly reports of the operation of the Lottery to the Governor, the Attorney General, the Controller, the Treasurer, and the Legislature. The reports shall be due 75 days after the close of the quarter for which the information is being required. The …

Appointment of Director; Removal The Governor, with the advice and consent of the Senate, shall appoint a Director within thirty days of the effective day of this Chapter. The Governor may remove the Director upon notification to the Commission and the Secretary of State. The Dir…

Powers and Duties of the Commission (a) The California State Lottery Commission shall exercise all powers necessary to effectuate the purposes of this chapter. In all decisions, the commission shall take into account the particularly sensitive nature of the California State Lotte…

(a) Notwithstanding any other provision of law, the Lottery Commission may do all of the following: (1) Purchase and sell assets in its own name. (2) Invest funds on deposit in the State Lottery Fund within or outside the State Treasury system. (3) Purchase and sell securities, i…

(a) The provisions of Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 are not applicable to any rule or regulation promulgated by the commission. (b) Section 2889 of the Public Utilities Code shall not be applicable to any live, recorded, or recorded-interacti…

Meetings with the Director The Commission shall meet with the Director not less than once each quarter to make recommendations and set policy, to approve or reject reports of the Director and transact such other business that may be properly brought before it.

(a) The commission shall promulgate regulations specifying the types of lottery games to be conducted by the lottery, provided: (1) No lottery game may use the theme of roulette, dice, baccarat, blackjack, Lucky 7s, draw poker, slot machines, or dog racing. (2) In lottery games u…

(a) The commission shall promulgate regulations that specify the number and value of prizes for winning tickets or shares in each lottery game including, without limitation, cash prizes, merchandise prizes, prizes consisting of deferred payments or annuities, and prizes of ticket…

Prohibition on Use of State Funds No appropriations, loans, or other transfer of State funds shall be made to the California State Lottery Commission except for a temporary line of credit for initial start-up costs as provided in this Act.

The commission shall promulgate regulations that specify the method for determining winners in each lottery game, provided: (a) A lottery game may be based on the results of a horse race with the consent of the association conducting the race and the California Horse Racing Board…

Sale Price of Tickets and Shares The Commission shall promulgate rules and regulations specifying the retail sales price for each ticket or share for each Lottery Game, provided: (a) Except as provided in subdivision (b), no ticket or share shall be sold for more or less than the…

The commission shall promulgate regulations to establish a system of verifying the validity of prizes and to effect payment of the prizes, provided that: (a) For convenience of the public, lottery game retailers may be authorized by the commission to pay winners of up to six hund…

The right of any person to a prize shall not be assignable, except that the payment of any prize may be assigned, in whole or in part, as provided by Section 8880.326 and this section, under any of the following circumstances: (a) An assignment executed by the prizewinner on a fo…

Upon the death of the prizewinner, the prize may be paid by any of the following methods: (a) To the trustee of a trust established pursuant to subdivision (a) of Section 8880.325, or, if the trust has been terminated, to those beneficiaries entitled to distribution under Section…

For any assignments, transfers, or security interests provided for in Sections 8880.325 and 8880.326, the following shall apply: (a) The commission may establish a reasonable fee for all expenses incurred in order to comply with Section 8880.325 or 8880.326 relating to an authori…

(a) The commission shall promulgate regulations specifying the manner of distribution, dissemination, or sale of lottery tickets or shares to lottery game retailers or directly to the public, and the incentives, if any, for lottery employees engaged in the distribution or sales a…

The commission may promulgate regulations to authorize the use of an electronic or electromechanical device to dispense lottery tickets to be used in the play of any lottery game, if the device satisfies all of the following specifications: (a) The lottery ticket dispenser dispen…

Salary The Director shall receive the salary provided for by Chapter 6 (commencing with Section 11550 of Part 1 of Division 3 of Title 2. The Director shall devote his or her entire time and attention to the duties of his or her office and shall not be engaged in any other profes…

The director shall, subject to the approval of the commission, perform all duties, exercise all powers and jurisdiction, assume and discharge all responsibilities, and carry out and effect all purposes of this chapter. The director shall act as secretary of the commission and exe…

Power to Hire The Director shall hire, pursuant to the approval of the Commission, such professional, clerical, technical and administrative personnel as may be necessary to carry out the provisions of this Chapter.

Deputy Directors Upon recommendation of the Director, the Governor shall appoint up to four deputy directors. The Director shall supervise each deputy director’s activities. The Commission shall determine the compensation of each deputy director.

(a) One of the deputy directors shall be the Deputy Director for Security, and be responsible for a security division to assure integrity, honesty, and fairness in the operation and administration of the California State Lottery, including, but not limited to, an examination of t…

The director shall confer as frequently as necessary or desirable, but not less than once every quarter, with the commission, on the operation and administration of the lottery. The director shall make available for inspection by the commission, upon request, all books, records, …

(a) Following the end of each full fiscal year, the commission shall calculate and report to the Controller and to the Legislature the amount of total net revenues allocated to the benefit of public education from the California State Lottery Education Fund for that fiscal year. …

Study of Lottery Systems; Recommendations for Improvement The Director shall make an on-going study of the operation and the administration of the lotteries which may be in operation in other states or countries, of available literature on the subject, of Federal laws which may a…

The director shall make and keep books and records that accurately and fairly reflect each day’s transactions, including, but not limited to, the distribution of tickets or shares to lottery game retailers, receipt of funds, prize claims, prize disbursements or prizes liable to b…

The director shall provide a monthly cumulative sales report to the commission and the Controller within 15 days after the end of each month. The report shall include cumulative lottery sales by product, compared to the commission-approved budget and the estimated administrative …

The director shall provide the following informational reports to the Department of Finance, the Joint Legislative Budget Committee, and the budget committees of the Legislature: (a) No later than January 10 of each year, a copy of the proposed administrative budget for the Calif…

Demographic Study of Lottery Players After the first six months of sales to the public, the Director shall engage an independent firm experienced in demographic analysis to conduct a special study which shall ascertain the demographic characteristics of the players of each Lotter…

Study of the Effectiveness of Lottery Communications After the first full year of sales to the public, the Director shall engage an independent firm experienced in the analysis of advertising, promotion, public relations, incentives, and other aspects of communications to conduct…

The Controller shall conduct quarterly and annual postaudits of all accounts and transactions of the commission and other special postaudits as the Controller deems necessary. The Controller or his or her agents conducting an audit under this chapter shall have access and authori…

The commission shall promulgate regulations specifying the terms and conditions for contracting with lottery game retailers so as to provide adequate and convenient availability of tickets or shares to prospective buyers of lottery games.

(a) The director shall, pursuant to this chapter and the regulations of the commission, select as lottery game retailers those persons and organizations as the director deems shall best serve the public convenience and promote the sale of tickets or shares. No person under the ag…

A contract with a lottery game retailer shall not be assignable or transferable.

Allocations for education: The California State Lottery Education Fund is created within the State Treasury, and is continuously appropriated for carrying out the purposes of this chapter. The Controller shall draw warrants on this fund and distribute them quarterly in the follow…