Amended IN Assembly August 19, 2024 CALIFORNIA LEGISLATURE 20232024 REGULAR SESSION Senate Bill No. 1523Introduced by Committee on Governmental Organization (Senators Dodd (Chair), Alvarado-Gil, Archuleta, Ashby, Bradford, Glazer, Jones, Nguyen, Ochoa Bogh, Padilla, Portantino, Roth, Rubio, Seyarto, Smallwood-Cuevas, and Wilk)March 12, 2024An act to amend Section 8880.70 of the Government Code, relating to the California State Lottery. 328 of the Penal Code, relating to gambling.LEGISLATIVE COUNSEL'S DIGESTSB 1523, as amended, Committee on Governmental Organization. California State Lottery Gambling: lotteries.Existing law prohibits the operation of a lottery. Notwithstanding this prohibition, the California Constitution and other existing law authorizes the operation of the California State Lottery and of charitable raffles, as specified. Existing law additionally clarifies that it is not unlawful to produce, print, or sell any advertising materials for a lawful lottery conducted outside of California if those advertising materials are not used in California.This bill would additionally clarify that it is not unlawful to place or operate communications to and from equipment located within the State of California associated with the hosting of lottery games duly authorized by another state or jurisdiction provided that persons wagering on those games are required by the laws or regulations of the other state or jurisdiction to be physically located within the geographic bounds of that other state or jurisdiction at the time the wager is initiated or placed.The California Constitution and existing law authorize and regulate the California State Lottery. Existing law clarifies that a business or entity may manufacture, assemble, repair, maintain, print, or otherwise produce and transport various devices, paraphernalia, equipment, tickets, or other products that are used in a state lottery. Existing law additionally clarifies that it is not unlawful to produce, print, or sell any advertising materials for a lawful lottery conducted outside of California if those advertising materials are not used in California. This bill would specify that is it lawful for a business to place, operate, or send communications using, any electronic communication equipment, including, without limitation, a computer server, wire, or router, located within the State of California, relating to the operation of a lottery conducted in any other state or jurisdiction where that lottery is not prohibited by the laws of that state or jurisdiction, and provided that the persons wagering on those games are required to be physically present in the geographic boundaries of the state or jurisdiction at the time of wagering.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: NO Local Program: NO Bill TextThe people of the State of California do enact as follows:SECTION 1. Section 328 of the Penal Code is amended to read:328. Nothing in this chapter shall (a) This chapter does not make unlawful the printing or other production of any advertisements for, or any ticket, chance, or share in a lottery conducted in any other state or nation where such lottery is not prohibited by the laws of such state or nation; or the sale of such materials by the manufacturer thereof to any person or entity conducting or participating in the conduct of such a lottery in any such state or nation. This section does not authorize any advertisement within California relating to lotteries, or the sale or resale within California of lottery tickets, chances, or shares to individuals, or acts otherwise in violation of any laws of the state.(b) This chapter does not make unlawful the placement or operation of, or communication to and from, equipment located in the State of California associated with the hosting of lottery games duly authorized by another state or jurisdiction provided that persons wagering on those games are required by the laws or regulations of the other state or jurisdiction to be physically located within the geographic bounds of that other state or jurisdiction at the time the wager is initiated or placed.(c) This section does not authorize any advertisement within California relating to lotteries, the sale or resale within California of lottery tickets, chances, or shares to individuals, or acts otherwise in violation of any laws of the state.SECTION 1.Section 8880.70 of the Government Code is amended to read:8880.70.Lawful Activity(a)Any other state or local law providing any penalty, disability, restriction, or prohibition for the possession, manufacture, transportation, distribution, advertising, or sale of any lottery tickets or shares shall not apply to the tickets or shares of the California State Lottery.(b)A business or entity may manufacture, assemble, repair, maintain, print, or otherwise produce and transport various devices, paraphernalia, equipment, tickets, or other products which are used in a state lottery.(c)A business or entity may place, operate, or send communications using, any electronic communication equipment, including, without limitation, any computer server, wire, or router, located within the State of California, relating to the operation of a lottery conducted in any other state or jurisdiction where that lottery is not prohibited by the laws of that state or jurisdiction and provided that the persons wagering on those games are required to be physically present in the geographic boundaries of the state or jurisdiction at the time of wagering. This subdivision does not authorize the sale or resale of lottery tickets, chances, or shares from any out-of-state lottery to any person in California. Amended IN Assembly August 19, 2024 CALIFORNIA LEGISLATURE 20232024 REGULAR SESSION Senate Bill No. 1523Introduced by Committee on Governmental Organization (Senators Dodd (Chair), Alvarado-Gil, Archuleta, Ashby, Bradford, Glazer, Jones, Nguyen, Ochoa Bogh, Padilla, Portantino, Roth, Rubio, Seyarto, Smallwood-Cuevas, and Wilk)March 12, 2024An act to amend Section 8880.70 of the Government Code, relating to the California State Lottery. 328 of the Penal Code, relating to gambling.LEGISLATIVE COUNSEL'S DIGESTSB 1523, as amended, Committee on Governmental Organization. California State Lottery Gambling: lotteries.Existing law prohibits the operation of a lottery. Notwithstanding this prohibition, the California Constitution and other existing law authorizes the operation of the California State Lottery and of charitable raffles, as specified. Existing law additionally clarifies that it is not unlawful to produce, print, or sell any advertising materials for a lawful lottery conducted outside of California if those advertising materials are not used in California.This bill would additionally clarify that it is not unlawful to place or operate communications to and from equipment located within the State of California associated with the hosting of lottery games duly authorized by another state or jurisdiction provided that persons wagering on those games are required by the laws or regulations of the other state or jurisdiction to be physically located within the geographic bounds of that other state or jurisdiction at the time the wager is initiated or placed.The California Constitution and existing law authorize and regulate the California State Lottery. Existing law clarifies that a business or entity may manufacture, assemble, repair, maintain, print, or otherwise produce and transport various devices, paraphernalia, equipment, tickets, or other products that are used in a state lottery. Existing law additionally clarifies that it is not unlawful to produce, print, or sell any advertising materials for a lawful lottery conducted outside of California if those advertising materials are not used in California. This bill would specify that is it lawful for a business to place, operate, or send communications using, any electronic communication equipment, including, without limitation, a computer server, wire, or router, located within the State of California, relating to the operation of a lottery conducted in any other state or jurisdiction where that lottery is not prohibited by the laws of that state or jurisdiction, and provided that the persons wagering on those games are required to be physically present in the geographic boundaries of the state or jurisdiction at the time of wagering.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: NO Local Program: NO Amended IN Assembly August 19, 2024 Amended IN Assembly August 19, 2024 CALIFORNIA LEGISLATURE 20232024 REGULAR SESSION Senate Bill No. 1523 Introduced by Committee on Governmental Organization (Senators Dodd (Chair), Alvarado-Gil, Archuleta, Ashby, Bradford, Glazer, Jones, Nguyen, Ochoa Bogh, Padilla, Portantino, Roth, Rubio, Seyarto, Smallwood-Cuevas, and Wilk)March 12, 2024 Introduced by Committee on Governmental Organization (Senators Dodd (Chair), Alvarado-Gil, Archuleta, Ashby, Bradford, Glazer, Jones, Nguyen, Ochoa Bogh, Padilla, Portantino, Roth, Rubio, Seyarto, Smallwood-Cuevas, and Wilk) March 12, 2024 An act to amend Section 8880.70 of the Government Code, relating to the California State Lottery. 328 of the Penal Code, relating to gambling. LEGISLATIVE COUNSEL'S DIGEST ## LEGISLATIVE COUNSEL'S DIGEST SB 1523, as amended, Committee on Governmental Organization. California State Lottery Gambling: lotteries. Existing law prohibits the operation of a lottery. Notwithstanding this prohibition, the California Constitution and other existing law authorizes the operation of the California State Lottery and of charitable raffles, as specified. Existing law additionally clarifies that it is not unlawful to produce, print, or sell any advertising materials for a lawful lottery conducted outside of California if those advertising materials are not used in California.This bill would additionally clarify that it is not unlawful to place or operate communications to and from equipment located within the State of California associated with the hosting of lottery games duly authorized by another state or jurisdiction provided that persons wagering on those games are required by the laws or regulations of the other state or jurisdiction to be physically located within the geographic bounds of that other state or jurisdiction at the time the wager is initiated or placed.The California Constitution and existing law authorize and regulate the California State Lottery. Existing law clarifies that a business or entity may manufacture, assemble, repair, maintain, print, or otherwise produce and transport various devices, paraphernalia, equipment, tickets, or other products that are used in a state lottery. Existing law additionally clarifies that it is not unlawful to produce, print, or sell any advertising materials for a lawful lottery conducted outside of California if those advertising materials are not used in California. This bill would specify that is it lawful for a business to place, operate, or send communications using, any electronic communication equipment, including, without limitation, a computer server, wire, or router, located within the State of California, relating to the operation of a lottery conducted in any other state or jurisdiction where that lottery is not prohibited by the laws of that state or jurisdiction, and provided that the persons wagering on those games are required to be physically present in the geographic boundaries of the state or jurisdiction at the time of wagering. Existing law prohibits the operation of a lottery. Notwithstanding this prohibition, the California Constitution and other existing law authorizes the operation of the California State Lottery and of charitable raffles, as specified. Existing law additionally clarifies that it is not unlawful to produce, print, or sell any advertising materials for a lawful lottery conducted outside of California if those advertising materials are not used in California. This bill would additionally clarify that it is not unlawful to place or operate communications to and from equipment located within the State of California associated with the hosting of lottery games duly authorized by another state or jurisdiction provided that persons wagering on those games are required by the laws or regulations of the other state or jurisdiction to be physically located within the geographic bounds of that other state or jurisdiction at the time the wager is initiated or placed. The California Constitution and existing law authorize and regulate the California State Lottery. Existing law clarifies that a business or entity may manufacture, assemble, repair, maintain, print, or otherwise produce and transport various devices, paraphernalia, equipment, tickets, or other products that are used in a state lottery. Existing law additionally clarifies that it is not unlawful to produce, print, or sell any advertising materials for a lawful lottery conducted outside of California if those advertising materials are not used in California. This bill would specify that is it lawful for a business to place, operate, or send communications using, any electronic communication equipment, including, without limitation, a computer server, wire, or router, located within the State of California, relating to the operation of a lottery conducted in any other state or jurisdiction where that lottery is not prohibited by the laws of that state or jurisdiction, and provided that the persons wagering on those games are required to be physically present in the geographic boundaries of the state or jurisdiction at the time of wagering. ## Digest Key ## Bill Text The people of the State of California do enact as follows:SECTION 1. Section 328 of the Penal Code is amended to read:328. Nothing in this chapter shall (a) This chapter does not make unlawful the printing or other production of any advertisements for, or any ticket, chance, or share in a lottery conducted in any other state or nation where such lottery is not prohibited by the laws of such state or nation; or the sale of such materials by the manufacturer thereof to any person or entity conducting or participating in the conduct of such a lottery in any such state or nation. This section does not authorize any advertisement within California relating to lotteries, or the sale or resale within California of lottery tickets, chances, or shares to individuals, or acts otherwise in violation of any laws of the state.(b) This chapter does not make unlawful the placement or operation of, or communication to and from, equipment located in the State of California associated with the hosting of lottery games duly authorized by another state or jurisdiction provided that persons wagering on those games are required by the laws or regulations of the other state or jurisdiction to be physically located within the geographic bounds of that other state or jurisdiction at the time the wager is initiated or placed.(c) This section does not authorize any advertisement within California relating to lotteries, the sale or resale within California of lottery tickets, chances, or shares to individuals, or acts otherwise in violation of any laws of the state.SECTION 1.Section 8880.70 of the Government Code is amended to read:8880.70.Lawful Activity(a)Any other state or local law providing any penalty, disability, restriction, or prohibition for the possession, manufacture, transportation, distribution, advertising, or sale of any lottery tickets or shares shall not apply to the tickets or shares of the California State Lottery.(b)A business or entity may manufacture, assemble, repair, maintain, print, or otherwise produce and transport various devices, paraphernalia, equipment, tickets, or other products which are used in a state lottery.(c)A business or entity may place, operate, or send communications using, any electronic communication equipment, including, without limitation, any computer server, wire, or router, located within the State of California, relating to the operation of a lottery conducted in any other state or jurisdiction where that lottery is not prohibited by the laws of that state or jurisdiction and provided that the persons wagering on those games are required to be physically present in the geographic boundaries of the state or jurisdiction at the time of wagering. This subdivision does not authorize the sale or resale of lottery tickets, chances, or shares from any out-of-state lottery to any person in California. The people of the State of California do enact as follows: ## The people of the State of California do enact as follows: SECTION 1. Section 328 of the Penal Code is amended to read:328. Nothing in this chapter shall (a) This chapter does not make unlawful the printing or other production of any advertisements for, or any ticket, chance, or share in a lottery conducted in any other state or nation where such lottery is not prohibited by the laws of such state or nation; or the sale of such materials by the manufacturer thereof to any person or entity conducting or participating in the conduct of such a lottery in any such state or nation. This section does not authorize any advertisement within California relating to lotteries, or the sale or resale within California of lottery tickets, chances, or shares to individuals, or acts otherwise in violation of any laws of the state.(b) This chapter does not make unlawful the placement or operation of, or communication to and from, equipment located in the State of California associated with the hosting of lottery games duly authorized by another state or jurisdiction provided that persons wagering on those games are required by the laws or regulations of the other state or jurisdiction to be physically located within the geographic bounds of that other state or jurisdiction at the time the wager is initiated or placed.(c) This section does not authorize any advertisement within California relating to lotteries, the sale or resale within California of lottery tickets, chances, or shares to individuals, or acts otherwise in violation of any laws of the state. SECTION 1. Section 328 of the Penal Code is amended to read: ### SECTION 1. 328. Nothing in this chapter shall (a) This chapter does not make unlawful the printing or other production of any advertisements for, or any ticket, chance, or share in a lottery conducted in any other state or nation where such lottery is not prohibited by the laws of such state or nation; or the sale of such materials by the manufacturer thereof to any person or entity conducting or participating in the conduct of such a lottery in any such state or nation. This section does not authorize any advertisement within California relating to lotteries, or the sale or resale within California of lottery tickets, chances, or shares to individuals, or acts otherwise in violation of any laws of the state.(b) This chapter does not make unlawful the placement or operation of, or communication to and from, equipment located in the State of California associated with the hosting of lottery games duly authorized by another state or jurisdiction provided that persons wagering on those games are required by the laws or regulations of the other state or jurisdiction to be physically located within the geographic bounds of that other state or jurisdiction at the time the wager is initiated or placed.(c) This section does not authorize any advertisement within California relating to lotteries, the sale or resale within California of lottery tickets, chances, or shares to individuals, or acts otherwise in violation of any laws of the state. 328. Nothing in this chapter shall (a) This chapter does not make unlawful the printing or other production of any advertisements for, or any ticket, chance, or share in a lottery conducted in any other state or nation where such lottery is not prohibited by the laws of such state or nation; or the sale of such materials by the manufacturer thereof to any person or entity conducting or participating in the conduct of such a lottery in any such state or nation. This section does not authorize any advertisement within California relating to lotteries, or the sale or resale within California of lottery tickets, chances, or shares to individuals, or acts otherwise in violation of any laws of the state.(b) This chapter does not make unlawful the placement or operation of, or communication to and from, equipment located in the State of California associated with the hosting of lottery games duly authorized by another state or jurisdiction provided that persons wagering on those games are required by the laws or regulations of the other state or jurisdiction to be physically located within the geographic bounds of that other state or jurisdiction at the time the wager is initiated or placed.(c) This section does not authorize any advertisement within California relating to lotteries, the sale or resale within California of lottery tickets, chances, or shares to individuals, or acts otherwise in violation of any laws of the state. 328. Nothing in this chapter shall (a) This chapter does not make unlawful the printing or other production of any advertisements for, or any ticket, chance, or share in a lottery conducted in any other state or nation where such lottery is not prohibited by the laws of such state or nation; or the sale of such materials by the manufacturer thereof to any person or entity conducting or participating in the conduct of such a lottery in any such state or nation. This section does not authorize any advertisement within California relating to lotteries, or the sale or resale within California of lottery tickets, chances, or shares to individuals, or acts otherwise in violation of any laws of the state.(b) This chapter does not make unlawful the placement or operation of, or communication to and from, equipment located in the State of California associated with the hosting of lottery games duly authorized by another state or jurisdiction provided that persons wagering on those games are required by the laws or regulations of the other state or jurisdiction to be physically located within the geographic bounds of that other state or jurisdiction at the time the wager is initiated or placed.(c) This section does not authorize any advertisement within California relating to lotteries, the sale or resale within California of lottery tickets, chances, or shares to individuals, or acts otherwise in violation of any laws of the state. 328. Nothing in this chapter shall (a) This chapter does not make unlawful the printing or other production of any advertisements for, or any ticket, chance, or share in a lottery conducted in any other state or nation where such lottery is not prohibited by the laws of such state or nation; or the sale of such materials by the manufacturer thereof to any person or entity conducting or participating in the conduct of such a lottery in any such state or nation. This section does not authorize any advertisement within California relating to lotteries, or the sale or resale within California of lottery tickets, chances, or shares to individuals, or acts otherwise in violation of any laws of the state. (b) This chapter does not make unlawful the placement or operation of, or communication to and from, equipment located in the State of California associated with the hosting of lottery games duly authorized by another state or jurisdiction provided that persons wagering on those games are required by the laws or regulations of the other state or jurisdiction to be physically located within the geographic bounds of that other state or jurisdiction at the time the wager is initiated or placed. (c) This section does not authorize any advertisement within California relating to lotteries, the sale or resale within California of lottery tickets, chances, or shares to individuals, or acts otherwise in violation of any laws of the state. Lawful Activity (a)Any other state or local law providing any penalty, disability, restriction, or prohibition for the possession, manufacture, transportation, distribution, advertising, or sale of any lottery tickets or shares shall not apply to the tickets or shares of the California State Lottery. (b)A business or entity may manufacture, assemble, repair, maintain, print, or otherwise produce and transport various devices, paraphernalia, equipment, tickets, or other products which are used in a state lottery. (c)A business or entity may place, operate, or send communications using, any electronic communication equipment, including, without limitation, any computer server, wire, or router, located within the State of California, relating to the operation of a lottery conducted in any other state or jurisdiction where that lottery is not prohibited by the laws of that state or jurisdiction and provided that the persons wagering on those games are required to be physically present in the geographic boundaries of the state or jurisdiction at the time of wagering. This subdivision does not authorize the sale or resale of lottery tickets, chances, or shares from any out-of-state lottery to any person in California.