BILL NUMBER: AB 1453	CHAPTERED
	BILL TEXT

	CHAPTER   800
	FILED WITH SECRETARY OF STATE   SEPTEMBER 24, 1998
	APPROVED BY GOVERNOR   SEPTEMBER 23, 1998
	PASSED THE ASSEMBLY   AUGUST 27, 1998
	PASSED THE SENATE   AUGUST 26, 1998
	AMENDED IN SENATE   AUGUST 24, 1998
	AMENDED IN SENATE   AUGUST 17, 1998
	AMENDED IN SENATE   JULY 27, 1998
	AMENDED IN SENATE   JUNE 23, 1998
	AMENDED IN SENATE   JUNE 26, 1997
	AMENDED IN ASSEMBLY   APRIL 28, 1997

INTRODUCED BY   Assembly Member Cardenas

                        FEBRUARY 28, 1997

   An act to amend Section 8880.4 of the Government Code, relating to
the state lottery.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 1453, Cardenas.  California State Lottery:  Cardenas Textbook
Act of 2000.
   (1) The California State Lottery Act of 1984 specifies that of the
total annual revenues from the sale of state lottery tickets or
shares, 50% shall be returned to the public in the form of prizes, as
specified, at least 34% shall be allocated to the benefit of public
education, as specified, and no more than 16% shall be allocated for
the payment of expenses of the lottery as described in the lottery
act.
   This bill would require that for the 1998-99 fiscal year and each
fiscal year thereafter, 50% of any increase in the share of these
moneys calculated to the benefit of public education from the amount
calculated in the 1997-98 fiscal year 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.
   (2) The bill would provide that the changes to the lottery act
specified in (1), would take effect only when submitted to and
approved by the voters.  The bill would require that its provisions
be submitted to the electors at the next statewide election occurring
131 days after this act is adopted.


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


  SECTION 1.  This act shall be known and referred to as the
"Cardenas Textbook Act of 2000."
  SEC. 2.  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.
   (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.
  SEC. 3.  Sections 1 and 2 of this act amend the California State
Lottery Act of 1984, an initiative statute, and shall become
effective only when submitted to and approved by the voters.
Sections 1 and 2 of this act shall be submitted to the electors at
the next statewide election occurring at least 131 days after this
act is adopted in the same manner as measures submitted to the voters
by the Legislature, as provided in the Elections Code.