H 4682 Joint Resolution, By J.L.M. Cromer, Battle, T. Brown, Dantzler, Hinson, 
Miller, Spearman, Whatley and Young-Brickell
 A JOINT RESOLUTION PROPOSING AN AMENDMENT TO SECTION 7, ARTICLE XVII OF THE
 CONSTITUTION OF SOUTH CAROLINA, 1895, RELATING TO THE PROHIBITION AGAINST
 LOTTERIES, SO AS TO AUTHORIZE THE STATE TO CONDUCT LOTTERIES AND TO PROVIDE
 THAT REVENUES GENERATED BY THE LOTTERY AFTER LOTTERY ADMINISTRATION EXPENSES
 AND PRIZES MUST BE USED FOR SCHOLARSHIPS FOR IN-STATE RESIDENTS TO ATTEND
 IN-STATE POST-SECONDARY INSTITUTIONS AND TO PROVIDE SCHOLARSHIP ELIGIBILITY
 REQUIREMENTS.

   02/24/98  House  Introduced and read first time HJ-11
   02/24/98  House  Referred to Committee on Ways and Means HJ-11
   04/23/98  House  Committee report: Favorable with amendment Ways
                     and Means HJ-47
   04/28/98  House  Member(s) added as co-sponsor(s): Rep(s)
                     Dantzler, Whatley & Hinson HJ-20
   04/29/98  House  Member(s) added as co-sponsor(s): Rep(s) Miller,
                     Battle, T. Brown HJ-14
   04/29/98  House  Requests for debate-Rep(s). Tripp,
                     Young-Brickell, Sharpe, Vaughn, Davenport,
                     Mason, R. Smith, Cromer, McMahand, Walker,
                     Delleney, M. Hines, Whatley, Gamble, Neilson,
                     Allison, HJ-44
   04/29/98  House  Requests for debate-Rep(s). Emory, Seithel,
                     Barfield, Witherspoon, Meacham, Bailey, Byrd,
                     Cobb-Hunter, J. Smith, Inabinett, Gourdine,
                     Hinson, Knotts, Law, Cave, Riser, Cotty & Wilder HJ-44
   04/29/98  House  Objection by Rep. Simrill, Hamilton, Campsen,
                     Altman, Cato, Leach, Canty, Hawkins, Loftis,
                     Sandifer, Barrett, Edge, Trotter, Cooper, &
                     Young HJ-44
   04/29/98  House  Recommitted to Committee on Ways and Means HJ-84
   04/29/98  House  Roll call Yeas-72  Nays-42 HJ-87

April 23, 1998

H. 4682

S. Printed 4/23/98--H.

Read the first time February 24, 1998.

To whom was referred a Joint Resolution (H. 4682), proposing an amendment to Section 7, Article XVII of the Constitution of South Carolina, 1895, relating to the prohibition against lotteries, etc., respectfully

That they have duly and carefully considered the same, and recommend that the same do pass with amendment:

Amend the joint resolution, as and if amended, by striking all after the enacting words and inserting:

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

"Section 7. 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 revenues from the state lottery must be paid into a state lottery fund to be invested by the State Treasurer with interest earned remaining a part of the fund. No more than fifteen percent of the revenues each year may be used for operational expenses of the state lottery, and no less than fifty percent of the revenues must be expended in prizes. Revenues remaining after the expenses of lottery administration and prizes must be used to provide scholarships to in-state residents to attend post-secondary institutions in this State in the manner the General Assembly shall provide by law. If in any year lottery revenues exceed the scholarship program requirements, the excess revenues must be used for public school building construction and renovation in the manner the General Assembly shall provide by law.

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

SECTION 2. The proposed amendment 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:

"Must Section 7, Article XVII of the Constitution of this State be amended so as to authorize lotteries to be conducted only by the State as provided for by the General Assembly with the revenues each year, after deducting not more than fifteen percent for operational expenses and not less than fifty percent for prizes, used to provide scholarships to in-state residents to attend post-secondary institutions in this State in the manner the General Assembly shall provide by law, and to provide for revenues in excess of the scholarship program requirements in any year to be used for public school building construction and renovation in the manner the General Assembly provides by law?

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

Amend title to conform.

HENRY E. BROWN, JR., for Committee.

There is no impact to the general fund revenue in FY 1998-99. All of the $75,000,000 that the lottery generates will be used for scholarships.

Previous studies in FY 1993-94 by the Office of Economic Research had estimated a lottery would generate $60,000,000 based on the average experience nationwide. Since those studies, Georgia has instituted a highly successful lottery. If South Carolina were to implement a lottery as successful as Georgia's, it could raise $125,000,000. Because of Georgia's larger population, higher per capita income and availability of out-of-state players, South Carolina would be hard pressed to generate similar lottery sales. Since FY 1993-94 the state's income has grown so that the State could expect in FY 1998-99 to earn $75,000,000 from a lottery.

This bill states that lottery sales will be used for scholarships. Therefore, none of the revenue generated from a lottery will be credited to the general fund under this bill.

Approved By:

William C. Gillespie

Board of Economic Advisors

A JOINT RESOLUTION

PROPOSING AN AMENDMENT TO SECTION 7, ARTICLE XVII OF THE CONSTITUTION OF SOUTH CAROLINA, 1895, RELATING TO THE PROHIBITION AGAINST LOTTERIES, SO AS TO AUTHORIZE THE STATE TO CONDUCT LOTTERIES AND TO PROVIDE THAT REVENUES GENERATED BY THE LOTTERY AFTER LOTTERY ADMINISTRATION EXPENSES AND PRIZES MUST BE USED FOR SCHOLARSHIPS FOR IN-STATE RESIDENTS TO ATTEND IN-STATE POST-SECONDARY INSTITUTIONS AND TO PROVIDE SCHOLARSHIP ELIGIBILITY REQUIREMENTS.

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. 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 revenues from the state lottery must be paid into a state lottery fund to be invested by the State Treasurer with interest earned remaining a part of the fund. Revenues remaining after the expenses of lottery administration and prizes must be used to provide scholarships to in-state residents to attend post-secondary institutions in this State in the manner the General Assembly shall provide by law but to include at a minimum the requirement that the student achieve at least a 'B' average in high school and maintain at least a cumulative 3.0 grade average while attending the post-secondary institution.

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

SECTION 2. The proposed amendment 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:

"Must Section 7, Article XVII of the Constitution of this State be amended so as to authorize lotteries to be conducted only by the State as provided for by the General Assembly with the revenues each year used to provide scholarships to in-state residents to attend post-secondary institutions in this State in the manner the General Assembly shall provide by law but to include at a minimum the requirement that the student achieve at least a 'B' average in high school and maintain at least a cumulative 3.0 grade average while attending the post-secondary institution?

Yes []

No []

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'."