Assemblyman PATRICK J. DIEGNAN, JR.
District 18 (Middlesex)
Assemblyman VINCENT PRIETO
District 32 (Bergen and Hudson)
Assemblyman SEAN CONNORS
District 33 (Hudson)
Assemblywoman BONNIE WATSON COLEMAN
District 15 (Hunterdon and Mercer)
Assemblymen Green, Chivukula, Assemblywoman Quijano and Assemblyman Moriarty
Urges Governor to seek legal advice from United States Department of Justice prior to contracting with private sector manager to operate the State Lottery.
CURRENT VERSION OF TEXT
An Assembly Resolution urging the Governor to seek legal advice from the United States Department of Justice prior to contracting with a private sector manager to operate the State Lottery.
Whereas, Federal law prohibits the promotion and advertisement of lotteries in interstate commerce, other than lotteries conducted by a State acting under the authority of State law; and
Whereas, A 2008 memorandum opinion of the federal Justice Department advised that in order for a lottery to come within the exception for state lotteries, a state must exercise actual control over all significant business decisions of the lottery and retain all but a de minimis share of the equity interest in the profits and losses as well as rights to trademarks and other unique intellectual property or essential assets of the lottery;
Whereas, The State Department of the Treasury has issued a Request for Proposal (RFP) on behalf of the Division of the State Lottery for the purpose of contracting with a private sector Manager to provide certain equipment, goods and services, and to perform certain Lottery sales operations and marketing operations; and
Whereas, The authority delegated to the Lottery Manager under a contract awarded pursuant to the RFP, as well as the compensation model proposed, raise serious concerns as to whether the New Jersey Lottery would continue to operate in a manner that is consistent with federal law; and
Whereas, The failure to comply with federal law could have severe consequences for this State and for the constitutionally-
dedicated funding that the State Lottery provides for State institutions and State aid for education; and
Whereas, Because of the importance of the State Lottery to the continued wellbeing of the citizens of this State and the magnitude of the potential consequences of a failure to continue to meet all federal requirements, it would be imprudent to proceed with the awarding of the Lottery Manager contract without first obtaining legal advice from the United States Department of Justice as to whether the Lottery Manager proposal complies with federal law; now, therefore,
Be It Resolved by the General Assembly of the State of New Jersey:
1. The General Assembly urges the Governor to seek legal advice from the United States Department of Justice prior to contracting with a private sector manager to operate the State Lottery in order to ensure that the contract is consistent with the requirements of federal law.
2. Duly authenticated copies of this resolution, signed by the Speaker of the General Assembly and attested to by the Clerk thereof, shall be transmitted to the Governor.
This Assembly Resolution urges the Governor to seek legal advice from United States Department of Justice prior to contracting with a private sector manager to operate the State Lottery in order to ensure that the contract is not inconsistent with the requirements of federal law.