AJR 5 — Proposes to amend the Nevada Constitution to revise provisions relating to lotteries and the sale of lottery tickets. (BDR C-986)

A.J.R.Assembly Joint Resolution No.

55–Assemblymen AC.H. SSEMBLY JOINT RESOLUTION N O.

5–AMiller SSEMBLYMENand C.H.Monroe-Moreno FILE NUMBER..........

M ILLER AND M ONROE -MORENO M ARCH 17, 2023 ____________ Referred to Committee on Legislative Operations and Elections SUMMARY—Proposes to amend the Nevada Constitution to revise provisions relating to lotteries and the sale of lottery tickets.

(BDR C-986) FISCAL NOTE:

Effect on Local Government:

No.

Effect on the State:

No.

~ EXPLANATION – Matter in bolded italics is new;

matter between brackets [omitted material] is material to be omitted.

Const.were modeled after provisions in the California Constitution of 1849, which werees also similar to constitutional provisions adopted in several other states.

Art.(State ex rel.

4, § 24 (1864)) Nevada’s constitutional provisions regarding lotteries were modeled after provisions in the California Constitution of 1849, which were rel.

Ex parte Pierotti, 43 Nev.ateNev. ex 243, 247-52 (1919)) Such constitutional provisions were:

243, 247-52 (1919)) Such constitutional provisions were:

and (2) intended to protect the public from the harm caused by such chartered lotteries which were prevalent in our Nation’s early history and which were plagued by fraud, corruption, mismanagement and abuse because they 818were (1879);largely unregulated by state governments.

(Stone v.

Mississippi, 101 U.S.

814, (1879);

Ex parte4,parte Pierotti,(S.D. 43 Nev.

243, 247-52 (1919);

Poppen v.

Walker, 520 N.W.2d 238, 243 (S.D.

III, § 25 (1994)) Under its existing provisions, the Nevada Constitution prohibits the State from authorizing a lottery, it also prohibits the State and its political subdivisions from operating a lottery and it also prohibits the sale of lottery tickets, but with certain exceptions for charitable lotteries.

Specifically, in 1990, Nevada’s voters approved constitutional amendments allowing the Legislature to provide by law for the operation and regulation of charitable lotteries, with certain restrictions, conducted - *AJR5* – 2 – by charitable or nonprofit organizations in the form of raffles or drawings on their ownamendments, behalf.the Legislature enacted laws providing for comprehensive regulation of charitable lotteries to ensure that those lotteries are operated honestly and free from criminal and corruptive elements and that the proceeds of those lotteries are expended to benefit the activities of charitable or nonprofit organizations in this State.

(Nev.

Const.

Art.

4, § 24) Following the 1990 constitutional amendments, the Legislature enacted laws providing for comprehensive regulation of charitable lotteries to ensure that those lotteries are operated honestly and free expended to benefit the activities of charitable or nonprofit organizations in this State.

However, this joint resolution prohibits the Legislature from enacting laws which grant a special charter or similar organizational or governing document to any person or other entity to operate lotteries or sell lottery tickets, and this joint resolution prohibits political subdivisions of this State from operating lotteries or selling lottery tickets.

Finally, this joint resolution ensures that the operation of any charitable lotteries must comply with the existing provisions governing charitable lotteries that were added to the Nevada Constitution by the 1990 constitutional amendments.

by- the82nd nextSession Legislature(2023) and– then2 approved– andIf ratifiedthis joint resolution is passed by the voters2023 inLegislature, anit electionedmust also be passed before the proposed amendments to the Nevada Constitution become effective.effective.election EXPLANATION – Matter in bolded italics is new;

matter between brackets [omitted material] is material to be omitted.

and W HEREAS , As a result of the well-known and scandalous cases of wrongdoing by chartered lotteries, there was a nationwide backlash against such lotteries and, by 1860, a majority of states had - *AJR5* – 3 – adopted constitutional provisions prohibiting the authorization of lotteries and the sale of lottery tickets, including provisions in the California Constitution of 1849, which stated that “[n]o lottery shall be authorized by this State, nor shall the sale of lottery tickets be allowed.” (Cal.

and W HEREAS , Because the California Constitution of 1849 served as the model for the Nevada Constitution, the delegates to the Nevada State Constitutional Convention of 1864 adopted California’s constitutional provisions regarding lotteries, without additional discussion or debate, so that the Nevada Constitution, as ratified in 1864, stated that “[n]o lottery shall be authorized by this - 82nd Session (2023) – 3 – State, nor shall the sale of lottery tickets be allowed.” (Nev.

Walker,the 520principal N.W.2devil 238,which 243led (S.D.to their prohibition in statewere constitutions.”), superseded on other grounds by constitutional amendments to S.D.

1994) (“These lotteries were the principal evil which led to their prohibition in state constitutions.”), superseded on other grounds by constitutional amendments to S.D.

and W HEREAS , Amending the Nevada Constitution to prohibit the Legislature from enacting laws which grant a special charter or - *AJR5* – 4 – similar organizational or governing document to any person or other entity to operate lotteries or sell lottery tickets will continue to protect the public from the harm caused by past chartered lotteries;

and W HEREAS , Amending the Nevada Constitution to allow the Legislature to provide by law for the operation and regulation of modern lotteries, in addition to charitable lotteries, will ensure that such modern lotteries are operated honestly and free from criminal and corruptive elements and that the proceeds of those lotteries are - 82nd Session (2023) – 4 – expended to benefit the general welfare of the residents of this State;