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Bill

ACR 77

Declares Division of State Lottery's new rule concerning online lottery sales inconsistent with legislative intent.

2026-2027 Regular Session Introduced by Dawn Fantasia and 2 co-sponsors

Declares the Division of State Lottery’s online ticket sales rule inconsistent with legislative intent and allows a 30-day window to amend, else potential rule invalidation.

Introduced, Referred to Assembly Tourism, Gaming and the Arts Committee
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Bill Summary · ACR 77

Summary of ACR 77 (NJ, 222nd Legislature)

Purpose and Intent

  • ACR 77 is a concurrent resolution that authorizes legislative review of a Division of State Lottery (in the Department of Treasury) rule and declares the Division of State Lottery’s rule allowing online lottery sales inconsistent with the Legislature’s intent.
  • The bill uses Article V, Section IV, paragraph 6 of the New Jersey Constitution, which grants the Legislature authority to review agency rules and to invalidate or prohibit rules found not to align with legislative intent.

Key Provisions and Changes

  • Finds Rule Inconsistent with Legislative Intent: The resolution states that the Division of State Lottery’s final rule, N.J.A.C. 17:20-1.5 (adopted August 17, 2023; effective October 2, 2023), permitting direct online sales of lottery tickets by the Division, is not consistent with the State Lottery Act’s intent.
  • Rule Under Review: N.J.A.C. 17:20-1.5 – Internet sales of lottery tickets by the Division of State Lottery.
  • Legislative Authority and Action Window:
    • The Legislature transmits the concurrent resolution to the Governor and the agency head.
    • The Division (agency) has 30 days to amend or withdraw the rule in response to the resolution.
    • If the agency does not amend/withdraw within 30 days, the Legislature may proceed to invalidate or prohibit the adoption of the rule after a public hearing, and a subsequent concurrent resolution with the required procedural steps (open hearing transcript on desks; vote by both Houses with a majority of authorized membership).
  • Constitutional and Statutory Basis Cited:
    • Article V, Section IV, and Article IV, Section VII of the New Jersey Constitution.
    • State Lottery Act, including N.J.S.A. 5:9-11, which prohibits issuing a lottery sales license to an entity that is engaged exclusively as a lottery sales agent, and defines “person” to include state agencies and instrumentalities.
  • Statement of Purpose: The resolution asserts that allowing the Division to directly sell lottery tickets online conflicts with the statutory prohibition on a state entity operating “exclusively as a lottery sales agent” and conflicts with the intent and plain meaning of N.J.S.A. 5:9-11.

Who and What Is Affected

  • Affected Entity: Division of State Lottery (Department of Treasury), and by extension the State Treasury and related state instrumentalities.
  • Potential Affected Parties:
    • The general public seeking to purchase lottery tickets online directly from the Division.
    • Other lottery licensees or agents under the State Lottery Act, which may be affected by changes in the competitive or regulatory framework.
  • Constitutional and statutory implications: The resolution foregrounds a potential legal and policy shift if the rule is retained, amended, or repealed, given the statutory prohibition on a state entity operating as a lottery sales agent.

Procedural and Timeline Aspects

  • Intro and Referral: Introduced January 13, 2026; referred to Assembly Tourism, Gaming and the Arts Committee.
  • Process Trigger: If enacted, the concurrent resolution is transmitted to the Governor and the Division.
  • Agency Response Window: 30 days for the Division to amend or withdraw N.J.A.C. 17:20-1.5 from the rulebook.
  • If Not Amended/Withdrawn: The Legislature may invalidate or prohibit the rule, following:
    • A public hearing in one or both Houses.
    • Transmission of a transcript to members.
    • At least 20 days of waiting (open meeting requirement).
    • A concurrent resolution passage by a majority of authorized membership in both Houses.

Bottom-Line

  • ACR 77 would formally declare the Division of State Lottery’s online ticket sales rule as inconsistent with legislative intent, trigger a 30-day window for amendment or withdrawal, and, if unresolved, enable the Legislature to proceed with invalidation of the rule through its constitutional authority. The measure seeks to preserve compliance with the State Lottery Act’s prohibition on state entities operating exclusively as lottery sales agents and to ensure legislative alignment with statutory intent.

Compiled from official sources — confirm details with the bill’s official record.

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