Bill Text: NJ ACR127 | 2024-2025 | Regular Session | Introduced
Bill Title: Declares Division of State Lottery's new rule concerning online lottery sales inconsistent with legislative intent.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced) 2024-03-18 - Introduced, Referred to Assembly Tourism, Gaming and the Arts Committee [ACR127 Detail]
Download: New_Jersey-2024-ACR127-Introduced.html
ASSEMBLY CONCURRENT RESOLUTION No. 127
STATE OF NEW JERSEY
221st LEGISLATURE
INTRODUCED MARCH 18, 2024
Sponsored by:
Assemblyman WILLIAM W. SPEARMAN
District 5 (Camden and Gloucester)
SYNOPSIS
Declares Division of State Lottery's new rule concerning online lottery sales inconsistent with legislative intent.
CURRENT VERSION OF TEXT
As introduced.
A Concurrent Resolution concerning legislative review of rules and regulations pursuant to Article V, Section IV, paragraph 6 of the Constitution of the State of New Jersey and invalidating the Division of State Lottery online lottery sale rule.
Whereas, Pursuant to Article V, Section IV, paragraph 6 of the Constitution of the State of New Jersey, the Legislature may review any rule or regulation adopted or proposed by an administrative agency to determine if it is consistent with the intent of the Legislature, and invalidate an adopted rule or regulation, or prohibit the adoption of a proposed rule or regulation, if it finds that the rule or regulation is not consistent with legislative intent; and
Whereas, Upon finding that a rule or regulation, either proposed or adopted, is not consistent with legislative intent, Article V, Section IV, paragraph 6 provides that the Legislature shall transmit its findings in the form of a concurrent resolution to the Governor and the head of the Executive Branch agency which promulgated, or plans to promulgate, the rule or regulation, and the agency shall have 30 days from the time the concurrent resolution is transmitted to amend or withdraw the rule or regulation; and
Whereas, If the agency does not amend or withdraw the existing or proposed rule or regulation, Article V, Section IV, paragraph 6 provides that the Legislature may invalidate or prohibit the adoption of the proposed rule or regulation, following a public hearing held by either House on the invalidation or prohibition, the placement of a transcript of the public hearing on the desks of the members of each House of the Legislature in an open meeting followed by the passage of at least 20 calendar days, and a vote of the majority of the authorized membership of each House in favor of a concurrent resolution invalidating or prohibiting the adoption of the rule or regulation; and
Whereas, Article IV, Section VII, paragraph 2, of the Constitution of New Jersey permits the creation of a lottery to be operated by the State; and
Whereas, the Legislature enacted the "State Lottery Act", P.L.1970, c.13 (C.5:9-1 et. seq.) in order to carry out the mandate thereof by establishing a lottery to be operated by the State; and
Whereas, the State Lottery Act created the comprehensive statutory mechanism for the operating of the lottery; and
Whereas, the State Lottery Act provides at N.J.S.A. 5:9-11 that no license to sell lottery tickets or shares shall be issued to any person to engage in business exclusively as a lottery sales agent; and
Whereas, the State Lottery Act defines person at N.J.S.A. 5:9-11 to include all departments, commissions, agencies and instrumentalities of the State, including counties and municipalities and agencies and instrumentalities thereof; and
Whereas, On September 19, 2022 the Division of State Lottery, established in the Department of Treasury, proposed a new rule, N.J.A.C. 17:20-1.5, entitled "Internet sales of lottery tickets by the Division of State Lottery"; and
Whereas, On August 17, 2023 the Division of State Lottery adopted N.J.A.C. 17:20-1.5 as a new rule with an effective date of October 2, 2023; and
Whereas, The rule permits the Division of State Lottery to directly sell lottery tickets to consumers in New Jersey through its website and mobile applications; and
Whereas, The newly adopted rule is in direct conflict with N.J.S.A. 5:9-11 since the Division of State Lottery will be engaged in business exclusively as a lottery sales agent; and
Whereas, The rule is contrary to the intent and plain meaning of the provision in the State Lottery Act that prohibits a person, including a Department, commission, and instrumentality of the State, from obtaining a lottery sale license when it is engaged in business exclusively as a lottery sales agent; and
Whereas, Any amended rule that permits the internet sale of lottery tickets by the Division of State Lottery shall be deemed by the Legislature as violating the State Lottery Act intent or plain meaning of N.J.S.A. 5:9-11; now, therefore,
Be It Resolved by the General Assembly of the State of New Jersey (the Senate concurring):
1. The Legislature declares the rules and regulations adopted by the Division of State Lottery to permit the direct sale of online lottery tickets by the division to be inconsistent with the intent of the Legislature.
2. Copies of this concurrent resolution, as filed with the Secretary of State, shall be transmitted by the Clerk of the General Assembly and the Secretary of the Senate to the Governor, the Secretary of the Department of the Treasury, and the Executive Director of the Division of State Lottery.
3. Pursuant to Article V, Section IV, paragraph 6 of the Constitution of the State of New Jersey, the Division of State Lottery shall have 30 days following transmittal of this resolution to amend or withdraw N.J.A.C. 17:20-1.5 or the Legislature may, by passage of another concurrent resolution, exercise its authority under the Constitution to invalidate the rules and regulations in whole or in part.
STATEMENT
This concurrent resolution embodies the finding of the Legislature that the final rule adopted by the Division of State Lottery on August 17, 2023 at N.J.A.C. 17:20-1.5, permitting the direct internet sale of lottery tickets by the Division of State Lottery, is not consistent with the legislative intent of the "State Lottery Act".
The Division of State Lottery shall have 30 days from the date of transmittal of this resolution to amend or withdraw the rule or the Legislature may, by passage of another concurrent resolution, exercise its authority under the Constitution to invalidate the rule in whole or in part.
