2009 California Government Code - Section 8880.68-8880.72 :: Article 8. Miscellaneous

8880.68.  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.

8880.69.  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.

8880.70.  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.

8880.71.  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.

8880.72.  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.