77th OREGON LEGISLATIVE ASSEMBLY--2013 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 3778

                    House Joint Resolution 33

Sponsored by Representative HICKS

                             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 add school safety
and community safety to public purposes for which net proceeds of
Oregon State Lottery may be spent.
  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), (8) { + , (9) and (10) + }   { - and (9) - }  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  { + public + } purposes:   { - creating jobs,
furthering economic development, financing public education in
Oregon or restoring and protecting Oregon's parks, beaches,
watersheds and native fish and wildlife. - }
   { +  (a) Creating jobs;
  (b) Furthering economic development;
  (c) Financing public education in Oregon;
  (d) Restoring and protecting Oregon's parks, beaches,
watersheds and native fish and wildlife; or
  (e) Providing for school safety and community safety by:
  (A) Protecting school children in preschool, primary and
secondary education programs from physical harm by a natural
person.
  (B) Protecting the community from criminal activity through
activities, including:
  (i) Crime prevention;
  (ii) Crime patrols;
  (iii) Incarceration of criminal offenders or youth offenders;
  (iv) Supervision of and services related to criminal offenders
on probation, parole or post-prison supervision;
  (v) Supervision of youth offenders within the jurisdiction of
the juvenile courts;
  (vi) Investigation and forensic work related to crimes;
  (vii) Prosecution of crimes;
  (viii) Maintenance of court facilities;
  (ix) Mental health intervention; and
  (x) Assistance to victims of crime. + }
  (4)(a) The State Lottery Commission shall be
 { - comprised - }  { + composed + } 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 - }   { + ensure + }
the integrity, security, honesty, and fairness of the
 { + State + } 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 - }   { + ensure + }
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 { + . 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 percent 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. After the payment of all prizes and all of
its expenses, the State Lottery shall turn over + }   { - 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 native fish and wildlife. - }  { +  public
purposes described in paragraphs (a) to (e) of subsection (3) of
this section.
  (e)  + }Effective July 1, 1997,   { - 15% - }   { + 15
percent + } of the net proceeds from the State Lottery shall be
deposited, from the fund
  { - created - }  { +  established + } by the Legislative
Assembly under   { - this paragraph - }  { +  paragraph (d) of
this subsection + }, in an education stability fund. Effective
July 1, 2003,   { - 18% - }   { + 18 percent + } of the net
proceeds from the State Lottery shall be deposited, from the fund
created by the Legislative Assembly under   { - this
paragraph - }  { +  paragraph (d) of this subsection + }, 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 subsection (6) 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) - }   { + (e) + } of
subsection (4) of this section, the amount in the education
stability fund created under paragraph   { - (d) - }
 { + (e) + } 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 { + , from the fund established by the
Legislative Assembly under paragraph (d) of subsection (4) of
this section, + } into the school capital matching fund created
under section 4, Article XI-P of this Constitution.
  (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) - }
 { + (e) + } 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) 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) Effective July 1, 1999,   { - 15% - }   { + 15 percent + }
of the net proceeds from the State Lottery shall be
deposited { + , from the fund established by the Legislative
Assembly under paragraph (d) of subsection (4) of this
section, + } in a parks and natural resources fund created by the
Legislative Assembly. Of the moneys in the parks and natural
resources fund,   { - 50% - }   { + 50 percent + } shall be
deposited in a parks subaccount and distributed for the public
purposes of financing the protection, repair, operation, and
creation of state, regional and local public parks, ocean shore
and public beach access areas, historic sites and recreation
areas, and   { - 50% - }   { + 50 percent + } shall be deposited
in a natural resources subaccount and distributed for the public
purposes of financing the restoration and protection of native
fish and wildlife, watersheds and water quality in Oregon. The
Legislative Assembly shall not limit expenditures from the parks
and natural resources fund, or from the parks or natural
resources subaccounts. The Legislative Assembly may appropriate
other moneys or revenue to the parks and natural resources fund.
   { +  (9)(a) Effective July 1, 2015, 50 percent of the net
proceeds from the State Lottery shall:
  (A) Be deposited, from the fund established by the Legislative
Assembly under paragraph (d) of subsection (4) of this section,
in a school and community safety fund to be created by the
Legislative Assembly. Earnings on moneys in the school and
community safety fund shall be retained in the fund and
distributed for the public purpose described in paragraph (e) of
subsection (3) of this section. The Legislative Assembly may
appropriate other moneys or revenue to the school and community
safety fund.
  (B) Be distributed, from the school and community safety fund
created pursuant to subparagraph (A) of this paragraph by the
state agency to which moneys in the fund are appropriated, as
follows:
  (i) Ten percent of the moneys must be allocated and distributed
to counties in equal amounts;
  (ii) Eighty percent of the moneys must be allocated and
distributed to counties in the same proportion as the State
Lottery generates gross proceeds from each of the counties; and
  (iii) Ten percent of the moneys must be allocated and
distributed to the state police.
  (b) The Legislative Assembly shall enact legislation to
implement the distribution of moneys under paragraph (a) of this
subsection, but may not establish substantive limitations on the
distribution of those moneys or additional restrictions on the
use of those moneys. + }
    { - (9) - }   { + (10) + } Only one State Lottery operation
shall be permitted in the State.
    { - (10) - }   { + (11) + } The Legislative Assembly has no
power to authorize, and shall prohibit, casinos from operation in
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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