HB 2539 Summary

• Establishes a State Lottery Commission consisting of five gubernatorial appointees to create and operate a state lottery beginning no earlier than January 1, 2021.

• Directs lottery revenue distribution as follows: 10% to administrative account, 40% divided equally among Hawaii cancer research special fund, trauma system special fund (capped at $7.4 million annually), community health centers special fund (capped at $8.8 million annually), emergency medical services special fund (capped at $8.8 million annually), and general fund, with remainder for prizes and agent compensation.

• Prohibits ticket sales over the Internet and electronic/mechanical devices for individual play; restricts ticket sales to persons 18 years or older with penalties for violations including misdemeanor or felony charges.

• Removes cigarette tax allocations to cancer research and health-related funds per section 245-15, replacing them with lottery revenue designations under the new state lottery chapter.

• Exempts state lottery activities from gambling offense statutes under chapter 712.