Prohibition on Use of State Funds
No appropriations, loans, or other transfer of State funds shall be made to the California State Lottery Commission except for a temporary line of credit for initial start-up costs as provided in this Act.
California Government Code — §§ 8880.24-8880.335
Prohibition on Use of State Funds
No appropriations, loans, or other transfer of State funds shall be made to the California State Lottery Commission except for a temporary line of credit for initial start-up costs as provided in this Act.
Amended by Stats. 2000, Ch. 131, Sec. 1. Effective January 1, 2001. Note: This section was added on Nov. 6, 1984, by initiative Prop. 37.
Powers and Duties of the Commission
Amended by Stats. 1989, Ch. 917, Sec. 3. Note: This section was added on Nov. 6, 1984, by initiative Prop. 37.
Operation of the Lottery
The Lottery shall be initiated and operated so as to produce the maximum amount of net revenues to supplement the total amount of money allocated for public education in California.
Amended by Stats. 2008, Ch. 764, Sec. 8. Effective November 14, 2008. Note: This section was added on Nov. 6, 1984, by initiative Prop. 37.
Meetings with the Director
The Commission shall meet with the Director not less than once each quarter to make recommendations and set policy, to approve or reject reports of the Director and transact such other business that may be properly brought before it.
Amended by Stats. 2003, Ch. 83, Sec. 1. Effective January 1, 2004. Note: This section was added on Nov. 6, 1984, by initiative Prop. 37.
Amended by Stats. 1994, Ch. 377, Sec. 1. Effective August 29, 1994. Note: This section was added on Nov. 6, 1984, by initiative Prop. 37.
Amended by Stats. 2013, Ch. 152, Sec. 1. (SB 817) Effective August 26, 2013. Note: This section was added on Nov. 6, 1984, by initiative Prop. 37.
The commission shall promulgate regulations that specify the method for determining winners in each lottery game, provided:
computer automated drawings, drawings shall be witnessed
in person or via live audio and video feed by an independent lottery contractor having qualifications established by the commission. Any equipment used in the drawings shall be inspected in person or via live audio and video feed by the independent lottery contractor and an employee of the Lottery both before and after the drawings. The drawings and the inspections shall be both audio and video recorded.
Amended by Stats. 1989, Ch. 917, Sec. 4. Note: This section was added on Nov. 6, 1984, by initiative Prop. 37.
Sale Price of Tickets and Shares
The Commission shall promulgate rules and regulations specifying the retail sales price for each ticket or share for each Lottery Game, provided:
Amended by Stats. 2009, Ch. 207, Sec. 1. (SB 831) Effective October 11, 2009. Note: This section was added by Stats. 1995, Ch. 363, with provisions from former Section 8880.32 (repealed by Ch. 363), which was added on Nov. 6, 1984, by initiative Prop. 37.
The commission shall promulgate regulations to establish a system of verifying the validity of prizes and to effect payment of the prizes, provided that:
symbols required by the lottery game involved, purchased by a minor, or not in compliance with additional specific rules and regulations and confidential validation and security tests appropriate to the particular lottery game. The lottery may pay a prize even though the actual winning ticket is not received by the lottery if the lottery validates the claim for the prize based upon substantial proof. “Substantial proof” means any evidence that would permit the lottery to use established validation procedures, as specified in lottery regulations, to validate the claim.
The commission may require that any form relating to a claim for a prize shall be signed under penalty of perjury. This declaration shall meet the requirements of Section 2015.5 of the Code of Civil Procedure.
attempts to claim a prize with a ticket or share that was purchased or sold in violation of this section, is guilty of a misdemeanor.
Amended by Stats. 2021, Ch. 296, Sec. 30. (AB 1096) Effective January 1, 2022.
The right of any person to a prize shall not be assignable, except that the payment of any prize may be assigned, in whole or in part, as provided by Section 8880.326 and this section, under any of the following circumstances:
guardian for the protection of the prizewinner, or for adjudicating
rights to, or ownership of, the prize.
full or the prize has been paid in full, whichever occurs first. Notwithstanding Division 9 (commencing with Section 9101) of the Commercial Code, the secured creditor shall not have the right to sell or assign the prizewinner’s rights to payments to itself or to any other person. This section shall not limit the secured creditor’s right to sell, assign, or transfer the obligation of the debtor and related security interest to a third party.
the prizewinner into the account until the lottery receives notification from both the secured creditor and the prizewinner that the payments are to be made to an account maintained at another bank, or that the secured creditor releases or terminates the security interest in the prizewinner’s payments.
synonymous, and “assignment” or “prize payment” means the payment that is directed to be paid to the secured creditor.
judicial order of a California superior court or a federal court having jurisdiction over property located within California, if the court determines and states in its order all of the following:
the prizewinner (A) has reviewed and understands the terms and effects of the assignment, (B) understands that the prizewinner will not receive the prize payments, or portions thereof, for the years assigned, (C) has entered into the agreement of their own free will without undue influence or duress and not under the influence of drugs or alcohol, (D) has had an opportunity to retain independent financial and tax advice, and (E) has been represented by independent legal counsel, who has advised the prizewinner of their legal rights and obligations under the assignment.
their spouse and submit to the court a signed and notarized statement wherein the spouse consents to the assignment. If the prizewinner is married, and the notarized statement is not presented to the court, the court shall determine, to the extent necessary and as appropriate under applicable law, the ability of the prizewinner to make the proposed assignment without the spouse’s consent.
security or tax identification number, the assignee’s full legal name and social security or tax identification number, and, if applicable, the citizenship or United States Citizenship and Immigration Services-assigned number of the assignee if a natural person.
as of that time against the prizewinner, as reflected in their respective official records as of the time of the notification. The date of the notification shall not be more than 20 days prior to the court hearing, unless extended by the court.
may be made in two installments, the first being paid prior to the time when, under the terms of the assignment, the lottery is required to make the first prize payment to the assignee and the second installment within 11 months thereafter. The second installment shall not be in an amount that exceeds the first installment. Notwithstanding this paragraph, any other installment payment schedule is permitted if the installment obligation relating to the installments is guaranteed by a financial institution, as defined in paragraph (2) of subdivision (a) of Section 4981 of the Financial Code, or a brokerage firm that is a member of the Securities Investor Protection Corporation (SIPC), as required by the federal Securities Investor Protection Act of 1970 (15 U.S.C. Sec. 78aaa et seq.).
be paid for the assignment in two installments as provided in paragraph (1), the prizewinner shall have a special lien for the balance of any payment due, effective without any further action, agreement, or notice, on any of the prize payments assigned by the prizewinner for the payment of moneys from the assignee. This lien shall terminate upon the prizewinner receiving actual payment of the moneys. The tendering of a check, payment instrument, or recital of payment shall not constitute actual payment of moneys for the purposes of this paragraph. Notwithstanding this paragraph, if a prizewinner accepts an installment obligation guaranteed by a Federal Deposit Insurance Corporation (FDIC) or SIPC insured entity, then the lien created by this section shall automatically terminate upon delivery of the installment obligation.
Legislature finds and declares that the creation of a statutory lien in favor of a prizewinner is necessary to protect the rights of the prizewinner from any creditors, subsequent bankruptcy trustees of the assignee, or from any subsequent assignees when the prizewinner has not received full payment for the assigned prize payments.
subdivision (d) is complete and correct in all respects, the lottery shall send the prizewinner and the assignee or assignees written confirmation of receipt of the court-ordered assignment and of the lottery’s intention to rely on that assignment in making future payments to the assignee or assignees named in the court order.
either subdivision (c) or (d) shall not be valid or allowed for the final three annual prize payments from the lottery to the prizewinner unless the contract assigning all or any part of the final three annual prize payments is entered into on or after the effective date of the act adding this subdivision.
(c), if either of the following occurs:
(A) The issuance by the United States Internal Revenue Service (IRS) of a technical rule letter, revenue ruling, or other public ruling of the IRS in which the IRS determines that, based upon the right of assignment provided in subdivision (d), a California lottery prizewinner who does not assign any prize payments pursuant to subdivision (d) would be subject to an immediate income tax liability for the value of the entire prize rather than annual income tax liability for each installment when paid.
(B) The issuance by a court of competent jurisdiction of a published decision holding that, based upon the right of assignment provided in subdivision (d), a California lottery prizewinner who does not assign any prize payments pursuant to
subdivision (d) would be subject to an immediate income tax liability for the value of the entire prize rather than annual income tax liability for each installment when paid.
Added by Stats. 1995, Ch. 363, Sec. 4. Effective August 4, 1995.
Upon the death of the prizewinner, the prize may be paid by any of the following methods:
Added by Stats. 1995, Ch. 363, Sec. 5. Effective August 4, 1995.
For any assignments, transfers, or security interests provided for in Sections 8880.325 and 8880.326, the following shall apply:
Amended by Stats. 1992, Ch. 500, Sec. 4. Effective August 17, 1992. Note: This section was added on Nov. 6, 1984, by initiative Prop. 37.
Added by Stats. 1997, Ch. 226, Sec. 1. Effective August 5, 1997.
The commission may promulgate regulations to authorize the use of an electronic or electromechanical device to dispense lottery tickets to be used in the play of any lottery game, if the device satisfies all of the following specifications: