Article 8. Miscellaneous of California Government Code >> Division 1. >> Title 2. >> Chapter 12.5. >> Article 8.

Except as provided in subdivision (d), no state or local taxes shall be imposed upon the following:
  (a) The sale of lottery tickets or shares of the lottery.
  (b) Any prize awarded by the lottery.
  (c) Any amount received by a prizewinner pursuant to an assignment under Section 8880.325.
  (d) This section does not prohibit the imposition of property taxes or license fees for any noncash prize that is awarded by the lottery.

Preemption of Local Laws It is the intent of this Chapter that all matters related to the operation of the Lottery as established hereby be governed solely pursuant to this Chapter and be free from regulation or legislation of local governments, including a city, city and county, or county.

Lawful Activity Any other state or local law providing any penalty, disability, restriction, or prohibition for the possession, manufacture, transportation, distribution, advertising, or sale of any lottery tickets or shares shall not apply to the tickets or shares of the California State Lottery. A business or entity may manufacture, assemble, repair, maintain, print, or otherwise produce and transport various devices, paraphernalia, equipment, tickets, or other products which are used in a state lottery.

Restrictions No person shall be selected, appointed or hired to be a Commissioner, Director, deputy director, or Commission employee who has been convicted of a felony or any gambling-related offense.

All civil process in any action brought against the Director, the Commission, or the Lottery and any subpoena for the production of Lottery records shall be served upon the Director or his or her designated representative at the Lottery headquarters in Sacramento.