BILL NUMBER: AB 662	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  APRIL 2, 2009

INTRODUCED BY   Assembly Member Hagman

                        FEBRUARY 25, 2009

   An act to add Section 8880.64.1 to the Government Code, relating
to the California State Lottery, and declaring the urgency thereof,
to take effect immediately.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 662, as amended, Hagman. California State Lottery: 
construction.   construction: salary reductions. 
   The California State Lottery Act of 1984, enacted by initiative,
authorizes a California State Lottery and provides for its operation
and administration by the California State Lottery Commission and the
Director of the California State Lottery, with certain limitations.
The act requires that not less than 84% of the total annual revenues
from the sale of state lottery tickets be returned to the public in
the form of prizes and net revenues to benefit public education, and
that no more than 16% of the total annual revenues be used for the
payment of expenses of the lottery. The act provides that expenses of
the lottery include all costs incurred in the operation and
administration of the lottery and all costs resulting from any
contracts entered into for the purchase or lease of goods and
services required by the lottery.
   This bill would make legislative findings regarding the proposed
construction of a new lottery complex estimated to cost $185,000,000.
The bill would prohibit the commission from proceeding with the
construction of the California State Lottery Complex project, or any
similar project, and would authorize the use of up to $40,000,000 for
the renovation of any existing building used by the commission for
lottery operations. The bill would require the commission to allocate
for the benefit of public education the difference between
$185,000,000 and the amount expended for renovation pursuant to these
provisions. 
   The bill would require that administrative funds saved by the
imposition of any salary reductions on lottery employees be used only
for providing services or benefits for those lottery employees, or
for advertising or other marketing activities. 
   The California State Lottery Act of 1984, an initiative measure,
specifies that none of its provisions may be changed except to
further its purpose by a bill passed by a 2/3 vote of each house of
the Legislature and signed by the Governor.
   This bill would declare that it furthers the purpose of the act
and would require a 2/3 vote.
   This bill would declare that it is to take effect immediately as
an urgency statute.
   Vote: 2/3. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  Section 8880.64.1 is added to the Government Code, to
read:
   8880.64.1.  (a) The Legislature finds and declares that the
commission's decision to construct a new lottery complex estimated to
cost one hundred eighty-five million dollars ($185,000,000) is not
an effective use of lottery proceeds, and that most of the funds
proposed for that project should be used to benefit public education.

   (b) Notwithstanding Section 8880.64 or any other provision of this
chapter, the commission shall not proceed with the construction of
the California State Lottery Complex project addressed in the
Mitigated Negative Declaration, Findings, and Mitigated Monitoring
and Reporting Program approved by the commission on January 28, 2009,
or any similar project.
   (c) In lieu of constructing the project specified in subdivision
(b), the commission may authorize the use of up to forty million
dollars ($40,000,000) for the renovation of any existing building
used by the commission for lottery operations.
   (d) The commission shall allocate for the benefit of public
education the difference between one hundred eighty-five million
dollars ($185,000,000) and the amount expended for renovation
pursuant to subdivision (c). The amount allocated for the benefit of
public education under this subdivision shall be in addition to the
amount of total annual revenues required to be allocated for the
benefit of public education pursuant to Section 8880.4. 
   (e) Administrative funds saved by the imposition of any salary
reductions on lottery employees shall be used only for either or both
of the following purposes:  
   (1) Providing services or benefits for lottery employees whose
salaries have been reduced.  
   (2) Advertising or other marketing activities. 
  SEC. 2.  The Legislature finds and declares that this act furthers
the purpose of the California State Lottery Act of 1984, enacted by
Proposition 37 at the November 6, 1984, general election.
  SEC. 3.  This act is an urgency statute necessary for the immediate
preservation of the public peace, health, or safety within the
meaning of Article IV of the Constitution and shall go into immediate
effect. The facts constituting the necessity are:
   In order to ensure that appropriate revenues from the California
State Lottery are used to benefit public education at the earliest
possible time, it is necessary that this act take effect immediately.