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AB-1479 Lottery tickets: delivery service.(2021-2022)

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Date Published: 03/18/2021 09:00 PM
AB1479:v98#DOCUMENT

Amended  IN  Assembly  March 18, 2021

CALIFORNIA LEGISLATURE— 2021–2022 REGULAR SESSION

Assembly Bill
No. 1479


Introduced by Assembly Member Quirk-Silva

February 19, 2021


An act to amend Section 8880 of the Government Code, relating to the California State Lottery. An act to amend Section 8880.47 of the Government Code, relating to the California State Lottery.


LEGISLATIVE COUNSEL'S DIGEST


AB 1479, as amended, Quirk-Silva. California State Lottery. Lottery tickets: delivery service.
(1) The California State Lottery Act of 1984, an initiative measure approved by the voters at the November 6, 1984, statewide general election, authorizes a California State Lottery and provides for its operation and administration by the California State Lottery Commission. The act authorizes the commission to contract with a lottery game retailer to sell tickets or shares in lottery games to the public and prohibits lottery tickets from being sold by a lottery game retailer unless the retailer has a certificate of authority issued by the lottery. The act directs the commission to 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. Existing law prohibits any changes in the types of lottery games or methods of delivery of these games that incorporate technologies or mediums that did not exist, were not widely available, or were not commercially feasible in 1984, unless certain conditions are met, including that a statute is enacted to expressly authorize the technology. The act specifies that none of its provisions may be changed except to further its purpose by a bill passed by a 2/3 vote of each house of the Legislature.
Existing law prohibits receiving, holding, or forwarding any money, thing, or consideration of value, to be staked, pledged, bet, or wagered upon the result of a lot or chance.
This bill would create an exception to that criminal prohibition by authorizing a business that is not a lottery game retailer to purchase lottery tickets from an authorized lottery game retailer on behalf of an individual who orders those tickets through an internet website or mobile application operated by the business if certain conditions are met, including that the business verifies that an individual who orders lottery tickets through the internet website or mobile application is 18 years of age or older and is located in the state at the time the tickets are ordered. The bill would prohibit the business from receiving a commission on any winning lottery ticket, but would authorize the business to charge a service fee to an individual who orders lottery tickets through the business’ internet website or mobile application.
(2) Existing law, the Money Transmission Act, prohibits a person from engaging in the business of money transmission in this state, or advertising, soliciting, or holding itself out as providing money transmission in this state, unless the person is licensed or exempt from licensure, as specified.
This bill would provide that a business that offers the service authorized by the bill is exempt from licensure under the Money Transmission Act.
(3) By permitting the facilitation of lottery ticket sales through third-party transactions, the bill would amend the California State Lottery Act of 1984. The bill would declare that its provisions further the purposes of the act.

The California State Lottery Act of 1984, an initiative measure approved by the voters at the November 6, 1984, statewide general election, authorizes a California State Lottery and provides for its operation and administration by the California State Lottery Commission.

This bill would make technical, nonsubstantive changes to the provision that names the act.

Vote: MAJORITY2/3   Appropriation: NO   Fiscal Committee: NOYES   Local Program: NO  

The people of the State of California do enact as follows:


SECTION 1.

 Section 8880.47 of the Government Code is amended to read:

8880.47.
 (a) 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.
(b) (1) Notwithstanding Section 337a of the Penal Code and subdivision (b) of Section 8880.28, to further the purpose of providing adequate and convenient availability of tickets, a business that is not a lottery game retailer may purchase lottery tickets from an authorized lottery game retailer on behalf of an individual who orders those tickets through an internet website or mobile application operated by the business if all of the following requirements are met:
(A) The business is licensed by the commission.
(B) The business verifies that an individual who orders lottery tickets through the internet website or mobile application is 18 years of age or older and is located in the state at the time the lottery tickets are ordered.
(C) The business offers the lottery tickets at the same price as the price the lottery tickets are offered for sale at a lottery game retailer.
(D) The business does not receive a commission on any winning lottery ticket.
(E) The business provides the lottery tickets to the purchaser through a courier or a California authorized physical retail establishment.
(2) A business that offers the service authorized by this subdivision may charge a service fee to an individual who orders lottery tickets through the business’ internet website or mobile application.
(3) A business that offers the service authorized by this subdivision is exempt from licensure under the Money Transmission Act (Division 1.2 (commencing with Section 2000) of the Financial Code).
(4) The service authorized by this subdivision is a type of delivery service and does not constitute online gaming for any purpose, including, but not limited to, the purpose of a tribal compact.
(5) The commission shall license and regulate business conducted pursuant to this subdivision. The commission shall require an applicant for a license to complete a criminal background check.

SEC. 2.

 The Legislature finds and declares that this act is consistent with the terms of, and furthers the purposes of, the California State Lottery Act of 1984, approved by the voters as Proposition 37 at the November 6, 1984, statewide general election.
SECTION 1.Section 8880 of the Government Code is amended to read:
8880.

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