AB 1479

Bill Subjects

Abstract

(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 23 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.