BILL ANALYSIS
AB 2633
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Date of Hearing: April 21, 2010
ASSEMBLY COMMITTEE ON GOVERNMENTAL ORGANIZATION
Joe Coto, Chair
AB 2633 (Davis) - As Amended: April 13, 2010
SUBJECT : California State Lottery Commission: report.
SUMMARY : Requires the California State Lottery Commission
(Commission) to incorporate into its annual report to the
Legislature information listing the service transactions between
the State Lottery and contracted advertising agencies.
Specifically, this bill :
1) Require the State Lottery to include a list of each
advertising agency from which they have purchased services,
how much the advertising agency was paid, and what specific
services the agency provided.
2) Reduces the threshold amount of a contract that is
required to be listed in the report from $100,000 to
$10,000.
EXISTING LAW :
1) Establishes the California State Lottery Act and creates
the California State Lottery Commission.
2) Requires the California State Lottery Commission to
prepare and submit to the Legislature by October 1 of each
year a report detailing the lottery's purchase of goods and
services through the Department of General Services.
3) Requires this report to include a listing of contracts
awarded for more than $100,000, and to provide specified
information.
FISCAL EFFECT : Unknown.
COMMENTS : Author states that there is no mechanism in place
for the Commission to report or to be held accountable that
ensures that those advertising dollars spend take into account
supplier equity. This bill will require a listing of contracts
awarded to small businesses, socially and economically
disadvantaged businesses and California business contracts,
AB 2633
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specifically advertising contracts, for more than $10,000, the
name of the contractor, the amount and term of the contract, and
the basis upon which the contract was awarded.
This bill seeks to hold the Commission accountable through: a)
reporting how advertising dollars are distributed so that
transparency exists; and, b) that consistent reporting is
available to the public for review of how those dollars are
spent.
Policy Consideration . The Committee and author may wish to
consider if this bill should consider requiring the California
State Lottery Commission to submit the proposed data under this
bill on a quarterly basis, instead of an annual basis. Also,
the Committee may wish to consider if the contents in this bill
should be placed in a quarterly financial report that includes
revenues, prize disbursements, expenses, net revenues, and all
other financial transactions involving lottery funds.
Prior legislation . AB 3096 (Committee on Governmental
Organization, Chapter 438, Statutes of 2004) makes various
technical and conforming changes to fiscal reporting and
contracting requirements for the California Lottery Act.
SB 2053 (Committee on Governmental Organization, Chapter 509,
Statutes of 2000) requires the California State Lottery
Commission to adopt and publish competitive bidding procedures
for the award of any subcontract of more than $100,000. Also,
this bill finds and declares that this bill furthers the purpose
of the California State Lottery Act of 1984 and makes other
minor technical changes.
REGISTERED SUPPORT / OPPOSITION :
Support
None on file
Opposition
None on file
Analysis Prepared by : Rod Brewer / G. O. / (916) 319-2531