AB 454

This bill limits the amount that the state is allowed to spend on advertising for

the lottery, and also limits the content of the advertising.

Under current law, the Department of Revenue or any other state agency is

prohibited from paying for promotional advertising with lottery proceeds or public

funds. Under current law, “promotional advertising” does not include advertising

that provides the public with information about the fact that the state has a lottery;

the locations that lottery tickets or shares are sold; the price of the tickets or shares;

the prize structure; the type of lottery game and explanation of how it works; the

time, date, and place of conducting the lottery; the winning numbers, lottery tickets,

or lottery shares; the identity of the winners; the amount won; and how the lottery

is operated or how the net proceeds of the lottery are used. This bill removes the

location where lottery tickets or lottery shares are sold and the identity of the

winners as exceptions from “promotional advertising.”

Current law also contains a number of required disclosures for all lottery

advertising, tickets, and shares. This bill requires that any broadcast video or audio

advertising contain a spoken statement disclosing all of the required information at

a normal speaking pace.

Under current law, the state may only spend up to 10 percent of lottery revenues

for the administration of the lottery, including the purchase of nonpromotional

advertising. This bill provides that the state is limited to spending no more than

$5,000,000 per fiscal year on nonpromotional advertising of the lottery.

Finally, the state currently administers an e-mail subscription service known

as the “players club.” This bill makes it illegal for DOR or any other state agency to

collect e-mail addresses and distribute nonpromotional advertising to those e-mail

addresses.