Report Title:

Lottermit

Description:

Legalizes "lottermit".

THE SENATE	S.B. NO.	641
TWENTY-FIFTH LEGISLATURE, 2009
STATE OF HAWAII

A BILL FOR AN ACT

RELATING TO LOTTERMIT.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

     SECTION 1.  The Hawaii Revised Statutes is amended by adding a new chapter to be appropriately designated and to read as follows:

"Chapter

lottermit

"§   ‑1  Lottermit; established.  (a)  There shall be allowed the game of lottermit, as an exemption from gambling offenses, as provided in this Act.

     (b)  Lottermit is a type of lottery, played as follows:

     (1)  Purchase price per ticket shall be $1;

     (2)  Number of total tickets to be sold shall not exceed four million;

     (3)  Each person shall be allowed to purchase not more than one hundred tickets;

     (4)  Tickets shall be sold and drawings shall be made by the department of budget and finance;

     (5)  The winning ticket holder shall receive a maximum of $          ; provided that more than one winner at varying amounts of winnings shall be allowed;

     (6)  Lottermit shall be held quarterly or semi-annually;

     (7)  Revenues, after expenses and paying out winnings, shall be deposited into the general fund; and

     (8)  Winnings shall constitute taxable income to the winning ticket holder."

     SECTION 2.  Section 712-1220, Hawaii Revised Statutes, is amended by amending the definition of "lottery" to read as follows:

     "(6)  "Lottery" means a gambling scheme in which:

    (a)   The players pay or agree to pay something of value for chances, represented and differentiated by numbers or by combinations of numbers or by some other medium, one or more of which chances are to be designated the winning ones; [and]

    (b)   The winning chances are to be determined by a drawing or by some other method based on an element of chance; and

    (c)   The holders of the winning chances are to receive something of value.

The term "lottery" does not include "lottermit" as provided under Act    , Session Laws of Hawaii 2009."

     SECTION 3.  The director of finance shall establish a plan to implement lottermit by January 1, 2011.  The director of finance shall submit a report to the legislature not later than twenty days prior to the convening of the 2010 regular session on the statutory, financial, and administrative requirements to implement lottermit by January 1, 2011, and any proposed legislation necessary to effectuate implementation.

     SECTION 4.  In codifying this Act, the revisor shall assign the appropriate Act number to this Act in the amendment to the definition of "lottery" under section 2 of this Act.

     SECTION 5.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

     SECTION 6.  This Act shall take effect on July 1, 2010.

INTRODUCED BY:

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