Azusa Hopes to Cash In on Lottery Tickets

When the state lottery goes into effect later this year, officials here hope the city can cash in.

A proposal to make the city the exclusive retailer of state lottery tickets within its own municipal boundaries was made this week by Mayor Eugene Moses. As purveyor, Azusa would collect the 5% that sellers are to receive from tickets, which will cost at least $1.

Moses said he did not know how the Azusa council would use the profits, but said he hoped the proceeds would help relieve high costs of electricity for low-income users.

Moses admitted that he did not know where to take his idea because there is not yet a state office, commission or director to oversee lottery procedures. The council, however, asked City Atty. Peter Thorson to investigate the possibility of Azusa becoming the official retailer.

“It just came to my mind--who’s going to make the profit from retailing tickets?” said Moses, who said he voted against Proposition 37, the state lottery ballot measure that voters approved in November.

“It was presented as a people thing to begin with, as a way to help schools and the public,” Moses said. “Well, we’re the public. It’s not fair that private business should make a profit. If they’re going to have a gamble, let’s at least keep it the way it was presented.”

Proposition 37 specified that 50% of all income from lottery sales be paid out as prizes, 16% be allocated for administrative costs and 34% be put in a special fund for the benefit of public education.

Kevin Brett, assistant press secretary in Gov. George Deukmejian’s Sacramento office, said that as far as he knows Azusa is the only city to suggest that it become a ticket purveyor.

Brett said all decisions about ticket sales are to be made by a five-member state lottery commission that has yet to be appointed by the governor. Brett said it is unlikely that the commission will be established and have its own director by March 22, the date set by Proposition 37.

“They’re going to be charged with implementing a $1-billion industry and the governor is being urged to move very deliberately in this,” Brett said.

Moses suggested that Azusa residents be offered the chance to buy lottery tickets at the same time they pay their utility bills. City government administers use of electrical power and bills are paid through City Hall. Julio Fuentes, acting city administrator, said he needs more information before speculating on procedures for selling tickets.

Neither Moses nor Fuentes knew where the profits, if any, would be applied, but Moses said he wanted to help relieve high costs of electricity for low-income users.

Councilmen Armando Camarena and Jim Cook voted to have the city staff research Moses’ proposal. Councilmen Lucio Cruz and Bruce Latta were absent.