BILL ANALYSIS Ó
-----------------------------------------------------------------
|SENATE RULES COMMITTEE | AB 2215|
|Office of Senate Floor Analyses | |
|(916) 651-1520 Fax: (916) | |
|327-4478 | |
-----------------------------------------------------------------
CONSENT
Bill No: AB 2215
Author: Medina (D) and Baker (R)
Introduced:2/18/16
Vote: 27
SENATE GOVERNMENTAL ORG. COMMITTEE: 12-0, 6/14/16
AYES: Hall, Bates, Block, Gaines, Galgiani, Glazer, Hernandez,
Hill, Hueso, Lara, McGuire, Vidak
NO VOTE RECORDED: Berryhill
SENATE APPROPRIATIONS COMMITTEE: Senate Rule 28.8
ASSEMBLY FLOOR: 78-0, 5/12/16 (Consent) - See last page for
vote
SUBJECT: California State Lottery Act: California State
University Lottery Education Fund: California State
University Trust Fund
SOURCE: California State University Board of Trustees
DIGEST: This bill requires the Board of Trustees of the
California State University (CSU) to deposit funds received from
the California State Lottery Education Fund in the CSU Trust
Fund instead of the CSU Lottery Education Fund.
ANALYSIS:
Existing law:
1)Authorizes, under the California State Lottery Act of 1984,
the 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
AB 2215
Page 2
limitations.
2)Establishes the California State Lottery Education Fund and
provides for direct payments from the fund to various
entities, including the Board of Trustees of the CSU.
3)Requires funds received by the CSU Board of Trustees to be
deposited in, and expended from, the CSU Lottery Education
Fund or, at the discretion of the trustees, deposited in local
trust accounts.
4)Establishes the CSU Trust Fund and specifies its sources of
revenue.
5)Provides that all money received by the CSU Trust Fund shall
augment the support appropriation to the CSU for the fiscal
year to which the collections apply.
This bill requires the CSU Board of Trustees to deposit funds
received from the California State Lottery Education Fund in the
CSU Trust Fund instead of the CSU Lottery Education Fund.
Background
Purpose of the bill. The author argues that, "this bill will
allow the State Controller's Office (SCO) to directly deposit
lottery funds into the CSU Trust Fund, in order to streamline
the accounting processes associated with utilizing the funds.
The SCO has already approved this change, this bill is necessary
for statutory conformity."
CSU Lottery Education Fund. Under current law, funds from the
CSU Education Fund are distributed quarterly by the SCO into the
CSU Lottery Education Fund, which serves as the depository
account for CSU lottery funds. CSU accounting staff must then
submit quarterly transfer requests to move these funds into the
CSU Trust Fund. They must also submit similar quarterly forms
to move the associated interest accrued from lottery revenues.
Prior Legislation
AB 142 (Hayashi Chapter 13, Statutes of 2010) modified the
AB 2215
Page 3
allocation formula of the California State Lottery Act of 1984.
SB 1679 (Florez, 2008) would have required that no less than 87%
of the total annual revenues from the sale of state lottery
tickets or shares be used for prizes and to benefit education,
and no more than 13% be used for lottery expenses. (Never heard
in the Senate.)
FISCAL EFFECT: Appropriation: No Fiscal
Com.:YesLocal: No
SUPPORT: (Verified8/1/16)
California State University Board of Trustees (source)
California State Controller Betty T. Yee
OPPOSITION: (Verified8/1/16)
None received
ARGUMENTS IN SUPPORT: According to the CSU Board of Trustees,
"the CSU's lottery funds are currently deposited into the CSU's
Lottery Education Fund. In order for CSU to allocate those
funds to system and campus-based programs, staff must submit
quarterly paperwork to the SCO to request the transfer of those
funds to the CSU Trust Fund. This is permissible under existing
law, but presents the CSU with a process that is unique among
the three segments of public higher education in California."
ASSEMBLY FLOOR: 78-0, 5/12/16
AYES: Achadjian, Alejo, Travis Allen, Arambula, Atkins, Baker,
Bigelow, Bloom, Bonilla, Bonta, Brough, Brown, Calderon,
Campos, Chang, Chau, Chávez, Chiu, Chu, Cooley, Cooper,
Dababneh, Dahle, Daly, Dodd, Eggman, Frazier, Beth Gaines,
Gallagher, Cristina Garcia, Eduardo Garcia, Gatto, Gipson,
Gomez, Gonzalez, Gordon, Gray, Grove, Hadley, Harper, Roger
Hernández, Holden, Irwin, Jones, Kim, Lackey, Levine, Linder,
AB 2215
Page 4
Lopez, Low, Maienschein, Mathis, Mayes, McCarty, Medina,
Melendez, Mullin, Nazarian, Obernolte, O'Donnell, Olsen,
Patterson, Quirk, Ridley-Thomas, Rodriguez, Salas, Santiago,
Steinorth, Mark Stone, Thurmond, Ting, Wagner, Waldron, Weber,
Wilk, Williams, Wood, Rendon
NO VOTE RECORDED: Burke, Jones-Sawyer
Prepared by: Felipe Lopez / G.O. / (916) 651-1530
8/3/16 19:27:45
**** END ****