H 3615 Joint Resolution, By R. Smith and Beck
 A JOINT RESOLUTION PROPOSING AN AMENDMENT TO SECTION 7, ARTICLE XVII OF THE
 CONSTITUTION OF SOUTH CAROLINA, 1895, RELATING TO LOTTERIES, SO AS TO
 AUTHORIZE LOTTERIES ONLY WHEN CONDUCTED BY THE STATE IN THE MANNER THE GENERAL
 ASSEMBLY PROVIDES BY LAW AND TO CREDIT THE NET PROCEEDS TO A SEPARATE LOTTERY
 FOR EDUCATION ACCOUNT IN THE STATE TREASURY THE PROCEEDS OF WHICH MUST BE USED
 ONLY FOR EDUCATION PURPOSES AND PROGRAMS IN THE MANNER THE GENERAL ASSEMBLY
 PROVIDES BY LAW, AND FURTHER PROPOSING AN AMENDMENT TO SECTION 7, ARTICLE
 XVII, SO AS TO PROHIBIT THE OPERATION OF A VIDEO GAME WITH A FREE PLAY
 FEATURE.

   02/25/99  House  Introduced and read first time HJ-4
   02/25/99  House  Referred to Committee on Ways and Means HJ-5

PROPOSING AN AMENDMENT TO SECTION 7, ARTICLE XVII OF THE CONSTITUTION OF SOUTH CAROLINA, 1895, RELATING TO LOTTERIES, SO AS TO AUTHORIZE LOTTERIES ONLY WHEN CONDUCTED BY THE STATE IN THE MANNER THE GENERAL ASSEMBLY PROVIDES BY LAW AND TO CREDIT THE NET PROCEEDS TO A SEPARATE LOTTERY FOR EDUCATION ACCOUNT IN THE STATE TREASURY THE PROCEEDS OF WHICH MUST BE USED ONLY FOR EDUCATION PURPOSES AND PROGRAMS IN THE MANNER THE GENERAL ASSEMBLY PROVIDES BY LAW, AND FURTHER PROPOSING AN AMENDMENT TO SECTION 7, ARTICLE XVII, SO AS TO PROHIBIT THE OPERATION OF A VIDEO GAME WITH A FREE PLAY FEATURE.

Be it enacted by the General Assembly of the State of South Carolina:

SECTION 1. It is proposed that Section 7, Article XVII of the Constitution of this State be amended to read:

"Section 7. No Except when conducted by the State, no lottery shall ever be is allowed or may be advertised by newspapers, or otherwise, or its tickets be sold in this State. Only the State may conduct lotteries as provided for by the General Assembly.

The proceeds derived from the lottery conducted by the State must first be used to pay the operating expenses of the lottery, including all prizes, provided that the General Assembly shall not be required to appropriate any funds for the payment of operating expenses and prizes. The net lottery proceeds remaining after the payment of operating expenses and prizes must be paid into a separate fund in the State Treasury, styled the Lottery for Education Account, which is separate and distinct from the general fund of the State, with earnings on it remaining a part of the account. The Lottery for Education Account must be used to support improvements and enhancements for educational programs and purposes, and these account proceeds must be used to supplement, not supplant, nonlottery educational resources or funding. The educational programs and educational purposes for which the Lottery for Education Account proceeds may be appropriated include only the following:

(a) capital projects for public pre-kindergarten through twelfth grade educational facilities;

(b) pre-kindergarten initiatives;

(c) tuition grants, scholarships, and loans to citizens of this State in order to enable them to attend higher education institutions in this State;

(d) education shortfall reserves; and

(e) teacher professional development programs.

Funds from the Lottery Education Account utilized for capital projects may be expended directly for such projects or may be used for the issuance and repayment of bonded indebtedness, as provided by law, for indebtedness incurred after January 1, 2001.

The game of bingo, when conducted by charitable, religious, or fraternal organizations exempt from federal income taxation or when conducted at recognized annual State state and county fairs, shall is not be deemed considered a lottery prohibited by this section.

The General Assembly shall provide by law for the implementation of the state lottery authorized by this section."

SECTION 2. The proposed amendment in SECTION 1 must be submitted to the qualified electors at the next general election for representatives. Ballots must be provided at the various voting precincts with the following words printed or written on the ballot:

"Shall Section 7, Article XVII of the Constitution of this State be amended so as to authorize lotteries to be conducted only by the State with the proceeds, less operating expenses and prizes, deposited to a separate Lottery for Education Account, the earnings of which remain a part of the account, the proceeds of which must be used to support improvements and enhancements for educational programs and purposes and not to supplant nonlottery resources or funding for educational programs and purposes, and to provide that educational programs and purposes only include: (1) capital outlay projects for public pre-kindergarten through twelfth grade educational facilities; (2) pre-kindergarten initiatives; (3) tuition grants, scholarships, and loans to citizens of this State in order to enable them to attend higher education institutions in this State; (4) educational shortfall reserves; and (5) teacher professional development programs?

Those voting in favor of the question shall deposit a ballot with a check or cross mark in the square after the word 'Yes', and those voting against the question shall deposit a ballot with a check or cross mark in the square after the word 'No'."

SECTION 3. Section 7, Article XVII of the Constitution of this State is amended by adding at the end:

"The operation of the video game with a free play feature is prohibited by this section."

SECTION 4. The proposed amendment in SECTION 3 must be submitted to the qualified electors at the next general election for representatives. Ballots must be provided at the various voting precincts with the following words printed or written on the ballot:

"Shall Section 7, Article XVII of the Constitution of this State be amended so as to provide that the operation of a video game with a free play feature is prohibited?

Those voting in favor of the question shall deposit a ballot with a check or cross mark in the square after the word 'Yes', and those voting against the question shall deposit a ballot with a check or cross mark in the square after the word 'No'."