BILL NUMBER: SB 1482	INTRODUCED
	BILL TEXT


INTRODUCED BY   Committee on Governmental Organization (Senators
Wright (Chair), Calderon, Denham, Florez, Harman, Negrete McLeod,
Oropeza, Padilla, Price, Wyland, and Yee)

                        MARCH 8, 2010

   An act to amend Section 8880.4 of the Government Code, relating to
the California State Lottery.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 1482, as introduced, Committee on Governmental Organization.
California State Lottery.
   The California State Lottery Act of 1984, enacted by initiative,
authorizes a California State Lottery for the purpose of providing
additional moneys to benefit education. The act requires that 50% of
the total annual lottery revenues be returned to the public in the
form of prizes, and that at least 34% of those revenues be allocated
to the benefit of public education. The act provides that all
unclaimed prize money shall revert to the benefit of public
education.
   This bill would correct an erroneous cross-reference in these
provisions.
   Vote: majority. Appropriation: no. Fiscal committee: no.
State-mandated local program: no.


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

  SECTION 1.  Section 8880.4 of the Government Code is amended to
read:
   8880.4.  Revenues of the state lottery shall be allocated as
follows:
   (a) Not less than 84 percent of the total annual revenues from the
sale of state lottery tickets or shares shall be returned to the
public in the form of prizes and net revenues to benefit public
education.
   (1) Fifty percent of the total annual revenues shall be returned
to the public in the form of prizes as described in this chapter.
   (2) At least 34 percent of the total annual revenues shall be
allocated to the benefit of public education, as specified in Section
8880.5. However, for the 1998-99 fiscal year and each fiscal year
thereafter, 50 percent of any increase in the amount calculated
pursuant to this paragraph from the amount calculated in the 1997-98
fiscal year shall be allocated to school districts and community
college districts for the purchase of instructional materials, on the
basis of an equal amount per unit of average daily attendance, as
defined by law, and through a fair and equitable distribution system
across grade levels.
   (3) All unclaimed prize money shall revert to the benefit of
public education, as provided for in subdivision (e) of Section
 8880.32   8880.321  .
   (4) All of the interest earned upon funds held in the State
Lottery Fund shall be allocated to the benefit of public education,
as specified in Section 8880.5. This interest is in addition to, and
shall not be considered as any part of, the 34 percent of the total
annual revenues that is required to be allocated for the benefit of
public education as specified in paragraph (2).
   (5) No more than 16 percent of the total annual revenues shall be
allocated for payment of expenses of the lottery as described in this
chapter. To the extent that expenses of the lottery are less than 16
percent of the total annual revenues, any surplus funds also shall
be allocated to the benefit of public education, as specified in this
section or in Section 8880.5.
   (b) Funds allocated for the benefit of public education pursuant
to subdivision (a) are in addition to other funds appropriated or
required under existing constitutional reservations for educational
purposes. No program shall have the amount appropriated to support
that program reduced as a result of funds allocated pursuant to
subdivision (a). Funds allocated for the benefit of public education
pursuant to subdivision (a) shall not supplant funds committed for
child development programs.
   (c) None of the following shall be considered revenues for the
purposes of this section:
   (1) Revenues recorded as a result of a nonmonetary exchange.
"Nonmonetary exchange" means a reciprocal transfer, in compliance
with generally accepted accounting principles, between the lottery
and another entity that results in the lottery acquiring assets or
services and the lottery providing assets or services.
   (2) Reimbursements received by the lottery for the cost of goods
or services provided by the lottery that are less than or equal to
the cost of the same goods or services provided by the lottery.
   (d) Reimbursements received in excess of the cost of the same
goods and services provided by the lottery, as specified in paragraph
(2) of subdivision (c), are not a part of the 34 percent of total
annual revenues required to be allocated for the benefit of public
education, as specified in paragraph (2) of subdivision (a). However,
this amount shall be allocated for the benefit of public education
as specified in Section 8880.5.