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Indicates Matter Stricken
Indicates New Matter
RECALLED
May 18, 1999
H. 3677
S. Printed 5/18/99--S.
Read the first time April 13, 1999.
REVENUE IMPACT 1/
This joint resolution would have no impact on the general fund revenue. It is expected to provide $90 million for the Lottery for Education Account in FY2001-02.
Explanation
To assess the potential earnings from a lottery in South Carolina, the Board of Economic Advisors examined the other thirty-six states that operate lotteries. There are substantial differences in the operations of lotteries throughout the United States. The Board of Economic Advisors chose the lottery of Kentucky as a standard for evaluating the potential of a lottery in South Carolina. Of the six southeastern states with lotteries, Kentucky's economy is the most similar to that of South Carolina.
In 1997 Kentucky netted $154 million from its lottery, which amounted to $39.33 per capita in that state. If South Carolina were to implement a lottery as successful as Kentucky on a per capita basis, the potential net earnings could reach $150 million. First year experiences of other states suggest that South Carolina will encounter start-up problems. In 1993 before Kentucky reached its full potential, it netted $99 million. In the first year of operation South Carolina could reasonably expect to generate approximately sixty percent of its full potential, which would yield $90 million for the Lottery for Education Account.
In order to implement the lottery, it must be approved in a referendum at the next general election, which will be November 2000. If approved by the voters it is expected that the General Assembly will ratify the results during the 2001 session. Upon completion of these steps, it is expected that the lottery results of $90 million will be available for FY2001-02.
Approved By:
William C. Gillespie
Board of Economic Advisors
1/ This statement meets the requirement of Section 2-7-71 for a state revenue impact, Section 2-7-76 for a local revenue impact, and Section 6-1-85(B) for an estimate of the shift in local property tax incidence.
TO PROPOSE AN AMENDMENT TO SECTION 7, ARTICLE XVII OF THE CONSTITUTION OF SOUTH CAROLINA, 1895, SO AS TO DELETE REFERENCES TO THE PROHIBITION ON LOTTERIES, THEIR ADVERTISING, AND TICKET SALES AND TO PROVIDE THAT LOTTERIES MAY BE CONDUCTED ONLY BY THE STATE AND TO PROVIDE FOR THE USE OF THE REVENUES DERIVED FROM THE LOTTERIES.
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 lottery shall ever be allowed or be advertised by newspapers, or otherwise, or its tickets sold in this State. Only the State may conduct lotteries, and these lotteries must be conducted in the manner that the General Assembly provides by law. The revenue derived from the lotteries must first be used to pay all operating expenses and prizes for the lotteries. The remaining lottery revenues must be credited to a separate fund in the State Treasury styled the 'Education Lottery Account', and the earnings on this account must be credited to it. Education Lottery Account proceeds may be used only for education purposes as the General Assembly provides 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 delete references to the prohibition on lotteries, their advertising, and ticket sales and to provide that lotteries may be conducted only by the State in the manner that the General Assembly provides by law with the lottery revenues first being used to pay operating expenses and prizes and the remaining revenues credited to a separate 'Education Lottery Account' in the state treasury, the earnings on which are credited to this account, with all account proceeds used only for education as the General Assembly provides by law?
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'."
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