HR 450: General Assembly; authorize sports betting in Georgia; provide by law - CA

House Resolution 450

By: Representatives Wiedower of the 121st, Martin of the 49th, Williams of the 168th, Williams of the 148th, Hugley of the 141st, and others

A RESOLUTION

Proposing an amendment to the Constitution of the State of Georgia so as to authorize the Georgia General Assembly to provide by general law for sports betting in this state; to provide for the regulation and allocation of revenues of such activities; to provide for related matters; to provide for the submission of this amendment for ratification or rejection; and for other purposes.

BE IT RESOLVED BY THE GENERAL ASSEMBLY OF GEORGIA:

SECTION 1.

Article I, Section II of the Constitution is amended by revising Paragraph VIII as follows: "Paragraph VIII. Lotteries, and nonprofit bingo games, raffles by nonprofit organizations, and sports betting. (a) Except as herein specifically provided in this Paragraph VIII, all lotteries, and the sale of lottery tickets, and all forms of sports betting, pari-mutuel betting, and casino gambling are hereby prohibited; and this prohibition shall be enforced by penal laws.

(b) The General Assembly may by law provide that the operation of a nonprofit bingo game shall not be a lottery and shall be legal in this state. The General Assembly may by law define a nonprofit bingo game and provide for the regulation of nonprofit bingo games.

(c) The General Assembly may by law provide for the operation and regulation of a lottery or lotteries by or on behalf of the state and for any matters relating to the purposes or provisions of this subparagraph. Proceeds derived from the lottery or lotteries operated by or on behalf of the state, as well as proceeds received by the Georgia Lottery Corporation from its participation in any activities authorized by subparagraph (f) of this Paragraph, shall be used to pay the operating expenses of the lottery or lotteries, including all prizes, as well as the operating expenses of the Georgia Lottery Corporation relating to its participation in any activities authorized by subparagraph (f) of this Paragraph without any appropriation required by law, and for educational programs and purposes as hereinafter provided. Lottery proceeds and proceeds received by the Georgia Lottery Corporation from its participation in any activities authorized by subparagraph (f) of this Paragraph shall not be subject to Article VII, Section III, Paragraph II; Article III, Section IX, Paragraph VI(a); or Article III, Section IX, Paragraph IV(c), except that the net proceeds after payment of such operating expenses shall be subject to Article VII, Section III, Paragraph II. Net proceeds after payment of such operating expenses shall be separately accounted for and shall be specifically identified by the Governor in his or her annual budget presented to the General Assembly as a separate budget category entitled 'Lottery Proceeds,' and the Governor shall make specific recommendations as to educational programs and educational purposes to which said net proceeds shall be appropriated. In the General Appropriations Act adopted by the General Assembly, the General Assembly shall appropriate all net proceeds of the lottery or lotteries and all net proceeds received by the Georgia Lottery Corporation from its participation in any activities authorized by subparagraph (f) of this Paragraph by such separate budget category to educational programs and educational purposes. Such net proceeds shall be used to support improvements and enhancements for educational programs and purposes and such net proceeds shall be used to supplement, not supplant, non-lottery other educational resources for educational programs and purposes. The educational programs and educational purposes for which proceeds may be so appropriated shall include only the following:

(1) Tuition grants, scholarships, or loans to citizens of this state to enable such citizens to attend colleges and universities located within this state, regardless of whether such colleges or universities are operated by the board of regents, or to attend institutions operated under the authority of the Department of Technical and Adult Education Technical College System of Georgia;

(2) Voluntary pre-kindergarten;

(3) One or more educational shortfall reserves in a total amount of not less than 10 percent of the net proceeds of the lottery for the preceding fiscal year;

(4) Costs of providing to teachers at accredited public institutions who teach levels K-12, personnel at public postsecondary technical institutes under the authority of the Department of Technical and Adult Education Technical College System of Georgia, and professors and instructors within the University System of Georgia the necessary training in the use and application of computers and advanced electronic instructional technology to implement interactive learning environments in the classroom and to access the state-wide distance learning network; and

(5) Capital outlay projects for educational facilities;

provided, however, that no funds shall be appropriated for the items listed in paragraphs (4) and (5) of this subsection subparagraphs (c)(4) and (c)(5) of this Paragraph until all persons eligible for and applying for assistance as provided in paragraph (1) of this subsection subparagraph (c)(1) of this Paragraph have received such assistance, all approved pre-kindergarten programs provided for in paragraph (2) of this subsection subparagraph (c)(2) of this Paragraph have been fully funded, and the education shortfall reserve or reserves provided for in paragraph (3) of this subsection subparagraph (c)(3) of this Paragraph have been fully funded.

(d) The General Assembly may by law provide for the operation and regulation of sports betting activities. The proceeds derived from the taxation of such sports betting activities shall be paid into and dedicated to a special trust fund to be created by the Georgia General Assembly and designated as the 'Georgia Sports Betting Proceeds Trust Fund,' from which funds shall be used as provided for in subparagraph (e) of this Paragraph. All other proceeds derived from the regulation of such sports betting activities shall, notwithstanding the provisions of Article VII, Section III, Paragraph II(a) and without any appropriation required by law, be used to pay the operating expenses and, as may be provided by law, to fund any operating reserves relating to the regulation of the sports betting activities authorized by this subparagraph, except that the net proceeds after payment of such operating expenses and the funding of such operating reserves shall be paid into the Georgia Sports Betting Proceeds Trust Fund.

(e)(1) Proceeds derived from the sports betting activities authorized by subparagraph (d) of this Paragraph that are required to be paid into the Georgia Sports Betting Proceeds Trust Fund shall not be subject to the provisions of Article III, Section IX, Paragraph VI, relating to the allocation of proceeds, or Article VII, Section III, Paragraph II(a), relating to payment into the general fund of the state treasury, and shall be specifically identified by the Governor in his or her annual budget presented to the General Assembly as a separate budget category entitled 'Sports Betting Proceeds.' Such proceeds that are paid into the Georgia Sports Betting Trust Fund shall be appropriated by the General Assembly as follows:

(A) Fifteen percent of the first $150 million of such proceeds in a fiscal year shall be appropriated by the General Assembly for programs and services that seek to prevent individuals from experiencing, and provide assistance to individuals who experience, addiction or other problems relating to betting or gambling; and

(B) Eighty-five percent of the first $150 million of such proceeds in a fiscal year and all such proceeds in excess of $150 million in a fiscal year shall be appropriated by the General Assembly for voluntary pre-kindergarten and the other educational programs and purposes set forth in subparagraph (c) of this Paragraph.

(2) Appropriations of such proceeds paid into the Georgia Sports Betting Proceeds Trust Fund by the General Assembly that are made pursuant to subparagraph (e)(1)(B) of this Paragraph shall not be subject to the provisions of Article III, Section IX, Paragraph IV(c), relating to the lapsing of funds.

(f) The Georgia Lottery Corporation may be authorized by law to participate in any sports betting activities provided for by the General Assembly pursuant to subparagraph (d) of this Paragraph; provided, however, that all proceeds received by the Georgia Lottery Corporation from its participation in such sports betting activities shall be used in accordance with the provisions of subparagraph (c) of this Paragraph. Any proceeds derived from any tax imposed by law upon the Georgia Lottery Corporation's participation in such sports betting activities shall be used in accordance with the provisions of subparagraph (e) of this Paragraph.

(d)(g) On and after January 1, 1995, the holding of raffles by nonprofit organizations shall be lawful and shall not be prohibited by any law enacted prior to January 1, 1994. Laws enacted on or after January 1, 1994, however, may restrict, regulate, or prohibit the operation of such raffles."

SECTION 2.

The above proposed amendment to the Constitution shall be published and submitted as provided in Article X, Section I, Paragraph II of the Constitution. The ballot submitting the above proposed amendment shall have written or printed thereon the following: "( ) YES Shall the Constitution of Georgia be amended so as to authorize sports ( ) NO betting in this state to provide additional funding for pre-kindergarten and HOPE scholarships?"

All persons desiring to vote in favor of ratifying the proposed amendment shall vote "Yes." All persons desiring to vote against ratifying the proposed amendment shall vote "No." If such amendment shall be ratified as provided in said Paragraph of the Constitution, it shall become a part of the Constitution of this state.