Report Title:
Gambling; Lottery Tickets
Description:
Legalizes the purchase of a lottery ticket while out-of-state; clarifies that state income taxes apply to proceeds of winning lottery ticket.
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THE SENATE |
S.B. NO. |
2201 |
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TWENTY-THIRD LEGISLATURE, 2006 |
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STATE OF HAWAII |
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A BILL FOR AN ACT
RELATING TO LOTTERy.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. Chapter 712, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:
"§712- Defense to gambling. It is a defense to a prosecution for any offense defined in this part that:
(a) The person who possessed a lottery ticket for the person's personal use purchased the ticket while the person was out of state;
(b) The ticket purchase and the lottery for which it was purchased did not violate the laws of the jurisdiction in which the ticket was purchased; and
(c) The person redeemed any winning ticket in person in the jurisdiction in which the lottery ticket was sold."
SECTION 2. Section 235-7, Hawaii Revised Statutes, is amended by amending subsection (b) to read as follows:
"(b) There shall be included in gross income, adjusted gross income, and taxable income: (1) unless excluded by this chapter relating to the uniformed services of the United States, cost-of-living allowances and other payments exempted by section 912 of the Internal Revenue Code, but section 119 of the Internal Revenue Code nevertheless shall apply; (2) unless expressly exempted or excluded as provided by subsection (a)(6), interest on the obligations of a State or a political subdivision thereof[.]; and (3) the proceeds of a winning lottery ticket purchased in a jurisdiction which sponsors a lottery."
SECTION 3. Section 712-1229, Hawaii Revised Statutes, is repealed.
["§712-1229 Lottery offenses; no defense. It is no defense to a prosecution under any section of this part relating to a lottery that the lottery itself is drawn or conducted outside this State and is not in violation of the laws of the jurisdiction in which it is drawn or conducted."]
SECTION 4. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.
SECTION 5. This Act shall take effect on July 1, 2006.
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INTRODUCED BY: |
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