Ecumenical Ministries v. Oregon State Lottery Commission

871 P.2d 106, 318 Or. 551, 1994 Ore. LEXIS 22
CourtOregon Supreme Court
DecidedApril 7, 1994
DocketCC 91C-11532; CA A72455; SC S40178 (Control), S40463, S40568
StatusPublished
Cited by102 cases

This text of 871 P.2d 106 (Ecumenical Ministries v. Oregon State Lottery Commission) is published on Counsel Stack Legal Research, covering Oregon Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Ecumenical Ministries v. Oregon State Lottery Commission, 871 P.2d 106, 318 Or. 551, 1994 Ore. LEXIS 22 (Or. 1994).

Opinions

[554]*554GRABER, J.

In this case, we are called on to decide the constitutionality of three statutes relating to the operation of the State Lottery — ORS 461.215, 461.217, and 461.5461 — under the present version of Article XV, section 4, of the Oregon Constitution. As originally adopted in 1857, Article XV, section 4, provided:

“Lotteries, and the sale of Lottery tickets, for any purpose whatever, are prohibited, and the Legislative Assembly shall prevent the same by penal laws.”2

In 1976, the voters adopted an amendment, which had been submitted to them by the Legislative Assembly, excepting charitable, fraternal, and religious organizations from the prohibition against lotteries in Article XV, section 4.

In 1984, Article XV, section 4, was amended through the initiative process. As pertinent here, Article XV, section 4, now provides:

“ (3) There is hereby created the State Lottery Commission which shall establish and operate a State Lottery. All proceeds from the State Lottery, including interest, but excluding costs of administration and payment of prizes, shall be used for the purpose of creating jobs and furthering economic development in Oregon.
“(4) (a) The State Lottery Commission shall be comprised of five members appointed by the Governor and confirmed by the Senate * * *. * * * The Commission is empowered to promulgate rules related to the procedures of the Commission and the operation of the State Lottery. * * *
“(d) The Director [of the State Lottery] shall implement and operate a State Lottery pursuant to the rules, and under the guidance, of the Commission. * * * The State Lottery may operate any game procedure authorized by the Commission, except parimutuel racing, Social games, and the games [555]*555commonly known in Oregon as bingo or lotto, whereby prizes are distributed using any existing or future methods among adult persons who have paid for tickets or shares in that game; provided that, in lottery games utilizing computer terminals or other devices, no coins or currency shall ever be dispensed directly to players from such computer terminals or devices.
“(e) There is hereby created within the General Fund the Oregon State Lottery Fund which is continuously appropriated for the purpose of administering and operating the Commission and the State Lottery. * * * [T]he State Lottery shall operate as a self-supporting revenue-raising agency of state government * * *. The State Lottery shall pay all prizes and all of its expenses out of the revenues it receives from the sale of tickets or shares to the public and turn over the net proceeds therefrom to a fund to be established by the Legislative Assembly from which the Legislative Assembly shall make appropriations for the benefit of the public purpose of creating jobs and furthering economic development in Oregon. At least 84% of the total annual revenues from the sale of all lottery tickets or shares shall be returned to the public in the form of prizes and net revenues benefitting the public purpose.
“(7) The Legislative Assembly has no power to authorize, and shall prohibit, casinos from operation in the State of Oregon.”

In 1991, plaintiffs, Ecumenical Ministries of Oregon and various individuals, brought an action for declaratory judgment and injunctive relief against the Oregon State Lottery Commission and the Lottery Director, alleging that ORS 461.215 and 461.217 (providing for the initiation by the Lottery Commission of video lottery games) and 461.5463 (providing for the distribution of some of the revenues generated by those games) violate certain provisions of Article XV, [556]*556section 4. In particular, plaintiffs alleged that, when implemented, ORS 461.215 and 461.217 will result in the creation of “state-sponsored video poker” that will “have the effect of creating casino gambling in the State of Oregon, ’ ’ in violation of Article XV, section 4(7), of the state constitution. Plaintiffs further alleged that ORS 461.546(1) “mandates] the use of net revenues of the Oregon Lottery for purposes other than the constitutionally-mandated purpose of creating jobs and furthering economic development in Oregon” and “authorizes] that more than 16% of lottery revenues be expended on costs of administration, including gaming law enforcement,” in violation of Article XV, sections 4(3) and 4(4) (e), of the Oregon Constitution.

The Oregon Restaurant Association and Video Lottery Consultants, Inc., intervened in the action. Defendants and intervenors moved for judgment on the pleadings pursuant to ORCP 21 B.4 Concluding that the case presented “only legal issues to be resolved by the court,” that a “motion for judgment on the pleadings is the appropriate procedural device for disposition of the case” and that the statutes do not violate the relevant provisions of the Oregon Constitution, the trial court granted defendants’ and intervenors’ motion. Plaintiffs appealed.

The Court of Appeals, sitting in banc, reversed the decision of the trial court and remanded the case for further proceedings. Ecumenical Ministries v. Oregon State Lottery Comm., 118 Or App 735, 849 P2d 532 (1993). The Court of Appeals held that the terms “casino” and “video poker” are ambiguous and that plaintiffs “are entitled to present evidence” to demonstrate the meaning of those terms and the manner in which “video poker” may violate the constitutional prohibition against “casinos.” Id. at 740-42. The court also held that plaintiffs “are entitled to present evidence to support their claim that the allocations [mandated] in ORS 461.546 are not for the purpose of creating jobs and furthering economic development in Oregon.” Id. at 742-43.

[557]*557Rossman, J., joined by Edmonds, J., dissented. Judge Rossman reasoned that “video poker” is authorized by ORS 461.215 and 461.217 and that it is unconstitutional “casino gambling”; he also reasoned that the allocation of funds mandated by ORS 461.546(1) does not promote economic development. Ecumenical Ministries v. Oregon State Lottery Comm., supra, 118 Or App at 746-47 (Rossman, J., dissenting). Judge Rossman stated that, “in this straightforward, facial challenge to the statutes,” plaintiffs were entitled to judgment on the pleadings. 118 Or at 747.

Intervenors moved for reconsideration, arguing that the case presented questions of law requiring no evidentiary amplification. The Court of Appeals allowed reconsideration and adhered to its former opinion. Ecumenical Ministries v. Oregon State Lottery Comm., 121 Or App 389, 854 P2d 952 (1993).

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Cite This Page — Counsel Stack

Bluebook (online)
871 P.2d 106, 318 Or. 551, 1994 Ore. LEXIS 22, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ecumenical-ministries-v-oregon-state-lottery-commission-or-1994.