South Carolina General Assembly
112th Session, 1997-1998

Bill 4682


Indicates Matter Stricken
Indicates New Matter


                    Current Status

Bill Number:                    4682
Type of Legislation:            Joint Resolution JR
Introducing Body:               House
Introduced Date:                19980224
Primary Sponsor:                Cromer
All Sponsors:                   Cromer, Spearman, Young-Brickell,
                                Dantzler, Whatley, Hinson, Miller,
                                Battle, T. Brown 
Drafted Document Number:        jic\5674htc.98
Residing Body:                  House
Current Committee:              Ways and Means Committee 30
                                HWM
Subject:                        Lotteries, State; conduct of,
                                revenue for college students in-state
                                for scholarships; Gambling,
                                Constitution, Tuition

History

Body    Date      Action Description                       Com     Leg Involved
______  ________  _______________________________________  _______ ____________

House   19980429  Recommitted to Committee                 30 HWM
House   19980429  Objection by Representative                      Hawkins
                                                                   Loftis
                                                                   Simrill
                                                                   Hamilton
                                                                   Campsen
                                                                   Altman
                                                                   Cato
                                                                   Leach
                                                                   Canty
                                                                   Sandifer
                                                                   Barrett
                                                                   Edge
                                                                   Trotter
                                                                   Cooper
                                                                   Young
House   19980429  Request for debate by Representative             Tripp
                                                                   Young-
                                                                   Brickell
                                                                   Sharpe
                                                                   Vaughn
                                                                   Davenport
                                                                   R. Smith
                                                                   Mason
                                                                   Cromer
                                                                   McMahand
                                                                   Walker
                                                                   Delleney
                                                                   M. Hines
                                                                   Whatley
                                                                   Gamble
                                                                   Neilson
                                                                   Allison
                                                                   Emory
                                                                   Seithel
                                                                   Barfield
                                                                   Witherspoon
                                                                   Meacham
                                                                   Bailey
                                                                   Byrd
                                                                   Cobb-Hunter
                                                                   J. Smith
                                                                   Inabinett
                                                                   Gourdine
                                                                   Hinson
                                                                   Knotts
                                                                   Law
                                                                   Cave
                                                                   Riser
                                                                   Cotty
                                                                   Wilder
House   19980429  Co-Sponsor added (Rule 5.2) by Rep.              Miller
House   19980429  Co-Sponsor added (Rule 5.2) by Rep.              Battle
House   19980429  Co-Sponsor added (Rule 5.2) by Rep.              T. Brown
House   19980428  Co-Sponsor added (Rule 5.2) by Rep.              Dantzler
House   19980428  Co-Sponsor added (Rule 5.2) by Rep.              Whatley
House   19980428  Co-Sponsor added (Rule 5.2) by Rep.              Hinson
House   19980423  Committee report: Favorable with         30 HWM
                  amendment
House   19980224  Introduced, read first time,             30 HWM
                  referred to Committee


View additional legislative information at the LPITS web site.


(Text matches printed bills. Document has been reformatted to meet World Wide Web specifications.)

COMMITTEE REPORT

April 23, 1998

H. 4682

Introduced by Reps. Cromer, Spearman and Young-Brickell

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

Read the first time February 24, 1998.

THE COMMITTEE ON WAYS AND MEANS

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

REPORT:

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?

Yes []

No []

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.

STATEMENT OF ESTIMATED FISCAL IMPACT

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'."

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