HB1925.DOC

SECTION 1. The legislature finds that homelessness continues to be one of the State's most significant and challenging social problems. The State has made some progress in addressing this growing challenge by allocating millions of dollars in public funding for services and related efforts, but more funding is needed to continue to support these initiatives.

The legislature further finds that other states have implemented lottery systems and are participating in multistate lottery games, including Powerball and Mega Millions. States participating in these lottery games receive a certain percentage of the lottery revenue and dedicate these funds for various state programs and services, such as education and social welfare. The State should give due consideration to the potential use of lotteries as a source of revenue generation to help maintain important social programs, including services that address homelessness in the State.

The purpose of this Act is to establish a three-year Hawaii state lottery pilot project and Hawaii state lottery task force to examine the feasibility of establishing a state lottery, the proceeds of which would be used to address homeless issues.

SECTION 2. As used in this Act, unless the context otherwise requires:

"Pilot project" means the Hawaii state lottery pilot project.

"Task force" means the Hawaii state lottery task force.

SECTION 3. (a) There is established the Hawaii state lottery pilot project within the department of accounting and general services for administrative purposes. The purpose of the pilot project is to examine the feasibility of establishing a state lottery, the proceeds of which would be used to address homeless issues.

(b) There is established the Hawaii state lottery task force to support the comptroller in effectuating the purposes of the pilot project. The comptroller shall appoint five members to the task force, all of whom shall be residents of this State. No more than three members may be from the same political party.

(1) At least one member shall have a minimum of five years' experience in law enforcement;

(2) At least one member shall have a minimum of five years' experience as a certified public accountant;

(3) At least one member shall have a minimum of five years' experience in marketing or advertising, or both; and

(4) At least one member shall have a minimum of five years' experience in convenience store, minimart, or grocery retailing.

(d) The task force shall select its own chairperson from its membership.

(e) The members of the task force shall serve without compensation but shall be reimbursed for expenses, including travel expenses, necessary for the performance of their duties.

(f) The task force and pilot project shall cease to exist on January 1, 2021.

SECTION 4. (a) The task force shall submit a report of its findings and recommendations regarding the pilot project, including any proposed legislation, to the legislature on the feasibility of establishing a state lottery, the proceeds of which would be used to address homeless issues, no later than twenty days before the convening of the regular session of 2020.

(b) In examining the feasibility of establishing a state lottery as required by this Act, the task force shall consider:

(1) The requirements for establishing a state lottery commission to oversee a state lottery to produce the maximum amount of net revenue consistent with the dignity of the State. The state lottery commission would supervise, administer, and enforce lottery operations;

(2) Details affecting the implementation of the state lottery, including:

(A) The types of lottery games and the types of game play-styles to be conducted;

(B) The method of selecting the winning tickets or shares for noncomputerized online games;

(D) The method to be used in selling tickets or shares;

(E) The licensing of agents to sell tickets or shares;

(F) The manner and amount of compensation to be paid licensed sales agents necessary to provide for the adequate availability of tickets or shares to prospective buyers and for the convenience of the public, including provision for variable compensation based on sales volume;

(G) The hiring of redemption agents to perform functions, activities, or services in connection with the operation of the lottery;

(H) Matters necessary or desirable for the efficient and economical operation and administration of the lottery and for the convenience of the purchasers of tickets or shares and the holders of winning tickets or shares; and

(I) Any restrictions regarding the sale and purchase of a lottery ticket or share and the violations concerning each restriction;

(3) The appropriate disposition of revenue accruing from the sale of lottery tickets or shares and from all other sources;

(4) The establishment of a state lottery revolving fund consisting of all revenues received from the sale of lottery tickets or shares, fees, and all other moneys credited or transferred from any other fund or source. State lottery revolving fund moneys would be expended for the following purposes:

(A) The payment of costs incurred in the operation and administration of the lottery, including the expenses of the commission and the costs resulting from any contract or contracts entered into for consulting or operational services;

(B) Independent audits;

(D) Payment of compensation to licensed sales agents necessary to provide for the adequate availability of lottery tickets or services to prospective buyers and for the convenience of the public;

(E) The purchase or lease of lottery equipment, lottery tickets, and materials; and

(F) Compensation of a licensed sales agent who is designated as a charitable organization;

(5) Audits of accounts, including hiring a certified public accountant to perform an annual audit and postaudits of all accounts and transactions of the commission for each lottery game;

(6) The disposition of unclaimed prize money;

(7) The disposition of state lottery revolving fund moneys to address homeless issues;

(8) The establishment of any other funds to effectuate the purposes of this Act;

(9) Monthly and annual reports to the governor and legislature;

(10) Ongoing study and investigation of the operation and the administration of lottery laws in effect in other states or countries, any literature on the subject that may be published or available, any federal laws that may affect the operation of the lottery, and the reaction of residents to existing and potential features of the lottery to recommend or effect changes that will tend to serve the purposes of this Act;

(11) The eligibility of a lottery prize winner to receive assistance; and

(12) Any other factors deemed appropriate by the task force.

SECTION 5. There is appropriated out of the general revenues of the State of Hawaii the sum of $ or so much thereof as may be necessary for fiscal year 2018-2019 to effectuate the purposes of the Hawaii state lottery pilot project established by this Act.

The sum appropriated shall be expended by the department of accounting and general services for the purposes of this Act.

SECTION 6. This Act shall take effect on July 1, 2018, and shall be repealed on January 1, 2021.

INTRODUCED BY:	_____________________________

HOUSE OF REPRESENTATIVES	H.B. NO.	1925
TWENTY-NINTH LEGISLATURE, 2018
STATE OF HAWAII