73rd OREGON LEGISLATIVE ASSEMBLY--2005 Regular Session
NOTE: Matter within { + braces and plus signs + } in an
amended section is new. Matter within { - braces and minus
signs - } is existing law to be omitted. New sections are within
{ + braces and plus signs + } .
LC 877
House Joint Resolution 17
Sponsored by Representative LIM
SUMMARY
The following summary is not prepared by the sponsors of the
measure and is not a part of the body thereof subject to
consideration by the Legislative Assembly. It is an editor's
brief statement of the essential features of the measure as
introduced.
Proposes amendment to Oregon Constitution to allow operation of
private casinos.
Refers proposed amendment to people for their approval or
rejection at next regular general election.
JOINT RESOLUTION
Be It Resolved by the Legislative Assembly of the State of
Oregon:
PARAGRAPH 1. Section 4, Article XV of the Constitution of the
State of Oregon, is amended to read:
{ + Sec. 4. + } (1) Except as provided in subsections (2),
(3), (4), (10) and (11) of this section, lotteries and the sale
of lottery tickets, for any purpose whatever, are prohibited, and
the Legislative Assembly shall prevent the same by penal laws.
(2) The Legislative Assembly may provide for the establishment,
operation, and regulation of raffles and the lottery commonly
known as bingo or lotto by charitable, fraternal, or religious
organizations. As used in this section, charitable, fraternal or
religious organization means such organizations or foundations as
defined by law because of their charitable, fraternal, or
religious purposes. The regulations shall define eligible
organizations or foundations, and may prescribe the frequency of
raffles, bingo or lotto, set a maximum monetary limit for prizes
and require a statement of the odds on winning a prize. The
Legislative Assembly shall vest the regulatory authority in any
appropriate state agency.
(3) There is hereby created the State Lottery Commission which
shall establish and operate a State Lottery. All proceeds from
the State Lottery, including interest, but excluding costs of
administration and payment of prizes, shall be used for any of
the following purposes: creating jobs, furthering economic
development, financing public education in Oregon or restoring
and protecting Oregon's parks, beaches, watersheds and critical
fish and wildlife habitats.
(4)(a) The State Lottery Commission shall be comprised of five
members appointed by the Governor and confirmed by the Senate who
shall serve at the pleasure of the Governor. 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. The Commission is empowered to
promulgate rules related to the procedures of the Commission and
the operation of the State Lottery. Such rules and any statutes
enacted to further implement this article shall insure the
integrity, security, honesty, and fairness of the Lottery. The
Commission shall have such additional powers and duties as may be
provided by law.
(b) The Governor shall appoint a Director subject to
confirmation by the Senate who shall serve at the pleasure of the
Governor. The Director shall be qualified by training and
experience to direct the operations of a state-operated lottery.
The Director shall be responsible for managing the affairs of the
Commission. The Director may appoint and prescribe the duties of
no more than four Assistant Directors as the Director deems
necessary. One of the Assistant Directors shall be responsible
for a security division to assure security, integrity, honesty,
and fairness in the operations and administration of the State
Lottery. To fulfill these responsibilities, the Assistant
Director for security shall be qualified by training and
experience, including at least five years of law enforcement
experience, and knowledge and experience in computer security.
(c) The Director shall implement and operate a State Lottery
pursuant to the rules, and under the guidance, of the Commission.
The State Lottery may operate any game procedure authorized by
the commission, except parimutuel racing, social games, and the
games commonly known in Oregon as bingo or lotto, whereby prizes
are distributed using any existing or future methods among adult
persons who have paid for tickets or shares in that game;
provided that, in lottery games utilizing computer terminals or
other devices, no coins or currency shall ever be dispensed
directly to players from such computer terminals or devices.
(d) There is hereby created within the General Fund the Oregon
State Lottery Fund which is continuously appropriated for the
purpose of administering and operating the Commission and the
State Lottery. The State Lottery shall operate as a
self-supporting revenue-raising agency of state government and no
appropriations, loans, or other transfers of state funds shall be
made to it. The State Lottery shall pay all prizes and all of its
expenses out of the revenues it receives from the sale of tickets
or shares to the public and turnover the net proceeds therefrom
to a fund to be established by the Legislative Assembly from
which the Legislative Assembly shall make appropriations for the
benefit of any of the following public purposes: creating jobs,
furthering economic development, financing public education in
Oregon or restoring and protecting Oregon's parks, beaches,
watersheds and critical fish and wildlife habitats. Effective
July 1, 1997, 15% of the net proceeds from the State Lottery
shall be deposited, from the fund created by the Legislative
Assembly under this paragraph, in an education stability fund.
Effective July 1, 2003, 18% of the net proceeds from the State
Lottery shall be deposited, from the fund created by the
Legislative Assembly under this paragraph, in an education
stability fund. Earnings on moneys in the education stability
fund shall be retained in the fund or expended for the public
purpose of financing public education in Oregon as provided by
law. Except as provided in subsections (6) and (8) of this
section, moneys in the education stability fund shall be invested
as provided by law and shall not be subject to the limitations of
section 6, Article XI of this Constitution. The Legislative
Assembly may appropriate other moneys or revenue to the education
stability fund. The Legislative Assembly shall appropriate
amounts sufficient to pay lottery bonds before appropriating the
net proceeds from the State Lottery for any other purpose. At
least 84% of the total annual revenues from the sale of all
lottery tickets or shares shall be returned to the public in the
form of prizes and net revenues benefiting the public purpose.
(5) Notwithstanding paragraph (d) of subsection (4) of this
section, the amount in the education stability fund created under
paragraph (d) of subsection (4) of this section may not exceed an
amount that is equal to five percent of the amount that was
accrued as revenues in the state's General Fund during the prior
biennium. If the amount in the education stability fund exceeds
five percent of the amount that was accrued as revenues in the
state's General Fund during the prior biennium:
(a) Additional net proceeds from the State Lottery may not be
deposited in the education stability fund until the amount in the
education stability fund is reduced to less than five percent of
the amount that was accrued as revenues in the state's General
Fund during the prior biennium; and
(b) Fifteen percent of the net proceeds from the State Lottery
shall be deposited into the school capital matching subaccount
created under subsection (8) of this section.
(6) The Legislative Assembly may by law appropriate, allocate
or transfer any portion of the principal of the education
stability fund created under paragraph (d) of subsection (4) of
this section for expenditure on public education if:
(a) The proposed appropriation, allocation or transfer is
approved by three-fifths of the members serving in each house of
the Legislative Assembly and the Legislative Assembly finds one
of the following:
(A) That the last quarterly economic and revenue forecast for a
biennium indicates that moneys available to the state's General
Fund for the next biennium will be at least three percent less
than appropriations from the state's General Fund for the current
biennium;
(B) That there has been a decline for two or more consecutive
quarters in the last 12 months in seasonally adjusted nonfarm
payroll employment; or
(C) That a quarterly economic and revenue forecast projects
that revenues in the state's General Fund in the current biennium
will be at least two percent below what the revenues were
projected to be in the revenue forecast on which the
legislatively adopted budget for the current biennium was based;
or
(b) { - If - } The proposed appropriation, allocation or
transfer is approved by three-fifths of the members serving in
each house of the Legislative Assembly and the Governor declares
an emergency.
(7) The Legislative Assembly may by law prescribe the
procedures to be used and identify the persons required to make
the forecasts described in subsection (6) of this section.
(8)(a) There is created a school capital matching subaccount
within the education stability fund created under paragraph (d)
of subsection (4) of this section.
(b) The Legislative Assembly may by law appropriate, allocate
or transfer moneys or revenue to the school capital matching
subaccount.
(c) To the extent funds are available, the Legislative Assembly
may appropriate, allocate or transfer moneys in the school
capital matching subaccount and earnings on moneys in the
subaccount for the purpose of providing state matching funds to
school districts for capital costs incurred by the school
districts.
(9) Notwithstanding paragraph (d) of subsection (4) of this
section, on May 1, 2003, the State Treasurer shall transfer $150
million from the education stability fund created under paragraph
(d) of subsection (4) of this section to a fund created by law
and known as the State School Fund. Moneys transferred under this
subsection may be used in the manner provided by law for moneys
in the State School Fund.
(10) Effective July 1, 1999, 15% of the net proceeds from the
State Lottery shall be deposited in a parks and natural resources
fund created by the Legislative Assembly. Of the moneys in the
parks and natural resources fund, 50% shall be distributed for
the public purpose of financing the protection, repair,
operation, and creation of state parks, ocean shore and public
beach access areas, historic sites and recreation areas, and 50%
shall be distributed for the public purpose of financing the
restoration and protection of native salmonid populations,
watersheds, fish and wildlife habitats and water quality in
Oregon. The Legislative Assembly shall not limit expenditures
from the parks and natural resources fund. The Legislative
Assembly may appropriate other moneys or revenue to the parks and
natural resources fund.
(11) Only one State Lottery operation shall be permitted in the
State.
(12) The Legislative Assembly { - has no power to - }
{ + may + } authorize { - , and shall prohibit, casinos from
operation - } { + the operation of private casinos + } in the
State of Oregon. { + The number of private casinos authorized
may not exceed the number of casinos permitted by tribal-state
gaming compacts between federally recognized Indian tribes and
the State of Oregon. + }
PARAGRAPH 2. { + The amendment proposed by this resolution
shall be submitted to the people for their approval or rejection
at the next regular general election held throughout this
state. + }
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