BILL NUMBER: SB 570 AMENDED
BILL TEXT
AMENDED IN SENATE JUNE 29, 2009
AMENDED IN SENATE APRIL 2, 2009
INTRODUCED BY Senator Maldonado
FEBRUARY 27, 2009
An act to add Section 22358.1 to the Vehicle Code,
relating to vehicles. An act to amend Sections 8880.4,
8880.56, 8880.64, 8880.6 5, and to repeal Section 8880.63
of the Government Code, relating to the California State Lottery,
and declaring the urgency thereof, to take effect immediately.
LEGISLATIVE COUNSEL'S DIGEST
SB 570, as amended, Maldonado. Vehicles: prima facie
speed limits: rural roads. California State Lottery.
(1) 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. Existing law establishes the State Lottery Fund,
as a special fund that is continuously appropriated for the purposes
of the California State Lottery.
Existing law requires that not less than 84% of the total annual
revenues from the sale of state lottery tickets or shares be returned
to the public in the form of prizes and net revenues to benefit
public education, and that no more than 16% of those revenues be used
for expenses of the lottery. Existing law requires that all
unclaimed prize money revert to the benefit of public education, and
that all of the interest earned upon funds held in the State Lottery
Fund be allocated to the benefit of public education. Existing law
defines net revenues for the purposes of the act.
This bill would require instead, commencing with the 2009-10
fiscal year, that not less than 87% of the total annual revenues of
the state lottery be returned to the public, and no more than 13% be
used for lottery expenses. The bill would define total revenues of
the state lottery to include revenue from the sale of tickets or
shares, merchandising revenue, advertising revenue, interest earnings
on moneys in the State Lottery Fund, and unclaimed prizes. The bill
would modify the definition of net revenues, as specified.
(2) Existing law requires that 50% of the total annual lottery
revenues be returned to the public in the form of prizes, and that
34% of those revenues be used to benefit public education.
This bill would require, instead, that not less than 50% of the
total annual lottery revenues, in an amount to be determined by the
commission, be returned to the public in the form of prizes. The bill
would also require the commission to establish the percentage to be
allocated for specified public education purposes to maximize the
total net revenues for public education, provided that total net
revenues for public education during any fiscal year after the
2010-11 fiscal year would be prohibited from being less than
$1,280,000,000.
The bill would also require the commission, each fiscal year, to
allocate $1,000,000 to the Office of Problem and Pathological
Gambling within the State Department of Alcohol and Drug Programs for
problem gambling awareness and treatment programs, and would require
the director of that office to report to the commission on the
effectiveness of problem gambling awareness and treatment efforts.
(3) Existing law requires that, to the extent that expenses of the
lottery are less than 16% of the total annual revenues, any surplus
funds be allocated to the benefit of public education.
This bill would provide, instead, that, to the extent that
expenses of the lottery are less than 13% of the total annual
revenues, any surplus funds may be carried over from year to year
upon a determination by the commission that the carryover furthers
the purpose of the act, provided that the annual total revenues for
any year allocated for payment, plus carried over revenues, shall not
exceed 16% of the annual total revenues for the year in which
carried over revenues are available. Excess carried over revenue
would be returned to the public pursuant to the provisions above.
(4) Existing law requires that all unclaimed prize money revert to
the benefit of public education, and that all of the interest earned
upon funds held in the State Lottery Fund be allocated to the
benefit of public education. Existing law requires at least 34% of
the total annual revenues to be allocated to the benefit of public
education, as specified. Existing law excludes specified
reimbursements from that 34% of total annual revenues. However,
existing law requires those reimbursements to be allocated for the
benefit of public education, as specified.
This bill would delete those provisions.
(5) Existing law authorizes the Director of the California State
Lottery to purchase or lease goods and services as necessary for
effectuating the purposes of the act, as specified.
This bill would instead grant the director express authority,
subject only to commission approval, to make any and all expenditures
that are necessary or reasonable for effectuating the purposes of
the act, as specified.
(6) Existing law requires the commission to adopt and publish
competitive bidding procedures for the award of any procurement or
contract involving an expenditure of more than $100,000.
This bill would instead require the commission to adopt and
publish those procedures for any procurement or contract involving an
expenditure of more than $500,000.
(7) 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 as an amendment of that act.
This bill would declare that it is to take effect immediately as
an urgency statute.
Existing law authorizes the Department of Transportation, after
consultation with the Department of the California Highway Patrol,
whenever it determines upon the basis of an engineering and traffic
survey on existing highway segments, or upon the basis of appropriate
design standards and projected traffic volumes in the case of newly
constructed highway segments, that a speed greater than 65 miles per
hour would facilitate the orderly movement of vehicular traffic and
would be reasonable and safe upon any state highway, or portion
thereof, to declare, with the approval of the Department of the
California Highway Patrol, a higher maximum speed of 70 miles per
hour.
This bill would require the Department of Transportation, in
consultation with the Department of the California Highway Patrol and
interested parties as determined necessary by the Department of
Transportation, to make an assessment as to whether it is appropriate
to establish in statute a new prima facie speed limit with regard to
undivided highways that were designed as rural roads but are now in
areas that have experienced substantial residential development. This
bill would require the department, if it determines a new prima
facie speed limit is appropriate, to recommend a new prima facie
speed limit for those roads, and any conditions that should apply to
the roads that would be subject to the new speed limit. The bill
would require the department to make a report to the Senate Committee
on Transportation and Housing and the Assembly Committee on
Transportation no later than June 30, 2010.
Vote: majority 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 8880.4 of the
Government Code is amended to read:
8880.4. Revenues Total revenues of
the state lottery , as defined in Section
8880.65, for each fiscal year shall be allocated as follows:
(a) Not less than 84 87 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. as follows.
(1) Fifty percent of the total annual revenues shall be
returned to the public in the form of prizes as described in this
chapter. The commission shall determine the percentage
of total revenues that shall be returned to the public in the form
of prizes as described in this chapter, provided that the percentage
shall not be less than 50 percent of the total revenues.
(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 percentage of the
total revenues to be allocated for public education as specified in
Section 8880.5 shall be established by the commission at a level
designed to maximize the total net revenues for public education,
provided that total net revenues for public education during any
fiscal year after the 2010-11 fiscal year shall not be less than one
billion two hundred eighty million dollars ($1,280,000,000). 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).
(3) One million dollars ($1,000,000) shall be allocated to the
Office of Problem and Pathological Gambling within the State
Department of Alcohol and Drug Programs for problem gambling
awareness and treatment programs. No later than April 1 of each year,
the Director of the Office of Problem and Pathological Gambling
shall report to the commission on the effectiveness of problem
gambling awareness and treatment efforts. The funding provided
pursuant to this paragraph shall not replace or limit any other
problem gambling awareness or treatment activity determined by the
director to further the purposes of this chapter.
(5)
(b) No more than 16 13
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 13 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. may be carried over from year to year
upon a determination by the commission that the carryover furthers
the purposes of this chapter, except that the total revenues
allocated for payment, plus carried over revenue, shall
not exceed 16 percent of the total revenues for the year in which
carried over revenue is available. Excess carried over revenue shall
be allocated pursuant to subdivision (a).
(b)
(c) 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)
(d) 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. 2. Section 8880.56 of the
Government Code is amended to read:
8880.56. (a) Notwithstanding other provisions of law
any other provision of this chapter or of any other
law , the director may purchase or lease goods and
services as has express authority, subject only to
commission approval, to make any and all expenditures that are
necessary or reasonable for effectuating the purposes of
this chapter , including, but not limited to, payment
for the costs of supplies, materials, tickets, independent audit
services, independent studies, data transmission, advertising,
promotion, consumer, retailer, and employee incentives, public
relations, communications, compensation paid to the lottery game
retailers, bonding for lottery game retailers, printing, distribution
of tickets or shares, reimbursement of costs of services provided to
the lottery by other governmental entities, and payment for the
costs of any other goods and services necessary or reason
able for effectuating the purposes of this chapter . The
director may not contract with any private party for the operation
and administration of the California State Lottery, created by this
chapter. However, this section does not preclude procurements
which that integrate functions such as
game design, supply, advertising, and public relations. In all
procurement decisions, the director shall, subject to the approval of
the commission, award contracts to the responsible supplier
submitting the lowest and best proposal that
maximizes the benefits to the state in relation to the areas of
security, competence, experience, and timely performance, shall take
into account the particularly sensitive nature of the California
State Lottery and shall act to promote and ensure integrity,
security, honesty, and fairness in the operation and administration
of the lottery and the objective of raising net revenues for the
benefit of the public purpose described in this chapter. With
regard to employee incentives, the director shall exercise his or her
authority consistent with the provisions of Chapter 10.3
(commencing with Section 3512) of Division 4 of Title 1.
(b) Notwithstanding any other provision of this chapter, the
following shall apply to contracts or procurement by the lottery:
(1) To ensure the fullest competition, the commission shall adopt
and publish competitive bidding procedures for the award of any
procurement or contract involving an expenditure of more than
one five hundred thousand dollars
($100,000 ($500,000 ). The competitive
bidding procedures shall include, but not be limited to, requirements
for submission of bids and accompanying documentation, guidelines
for the use of requests for proposals, invitations to bid, or other
methods of bidding, and a bid protest procedure. The director shall
determine whether the goods or services subject to this paragraph are
available through existing contracts or price schedules of the
Department of General Services.
(2) The contracting standards, procedures, and rules contained in
this subdivision shall also apply with respect to any subcontract
involving an expenditure of more than one
five hundred thousand dollars ($100,000
($500,000 ). The commission shall establish, as part of its
bidding procedures for general contracts, subcontracting guidelines
that implement this requirement.
(3) The provisions of Article 1 (commencing with Section 11250) of
Chapter 3 of Part 1 of Division 3 apply to the commission.
(4) The commission is subject to the Small Business Procurement
and Contract Act, as provided in Chapter 6.5 (commencing with Section
14835) of Part 5.5 of Division 3.
(5) In advertising or awarding any general contract for the
procurement of goods and services exceeding five hundred thousand
dollars ($500,000), the commission and the director shall require all
bidders or contractors, or both, to include specific plans or
arrangements to utilize subcontracts with socially and economically
disadvantaged small business concerns. The subcontracting plans shall
delineate the nature and extent of the services to be utilized, and
those concerns or individuals identified for subcontracting if known.
It is the intention of the Legislature in enacting this section to
establish as an objective of the utmost importance the advancement
of business opportunities for these small business concerns in the
private business activities created by the California State Lottery.
In that regard, the commission and the director shall have an
affirmative duty to achieve the most feasible and practicable level
of participation by socially and economically disadvantaged small
business concerns in its procurement programs.
By July 1, 1986, the commission shall adopt proposal evaluation
procedures, criteria, and contract terms which are consistent with
the advancement of business opportunities for small business concerns
in the private business activities created by the California State
Lottery and which will achieve the most feasible and practicable
level of participation by socially and economically disadvantaged
small business concerns in its procurement programs. The proposal
evaluation procedures, criteria, and contract terms adopted shall be
reported in writing to both houses of the Legislature on or before
July 1, 1986.
For the purposes of this section, socially and economically
disadvantaged persons include women, Black Americans, Hispanic
Americans, Native Americans (including American Indians, Eskimos,
Aleuts, and Native Hawaiians), Asian-Pacific Americans (including
persons whose origins are from Japan, China, the Philippines,
Vietnam, Korea, Samoa, Guam, the United States Trust Territories of
the Pacific, Northern Marianas, Laos, Cambodia, and Taiwan), and
other minorities or any other natural persons found by the commission
to be disadvantaged.
The commission shall report to the Legislature by July 1, 1987,
and by each July 1 thereafter, on the level of participation of small
businesses, socially and economically disadvantaged businesses, and
California businesses in all contracts awarded by the commission.
(6) The commission shall 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. The
report shall also include a listing of contracts awarded for more
than one hundred thousand dollars ($100,000), the name of the
contractor, amount and term of the contract, and the basis upon which
the contract was awarded.
The
(c) The lottery shall fully
comply with the requirements of paragraphs (2) to (5), inclusive,
of subdivision (b), except that any function or role which
is otherwise the responsibility of the Department of Finance or the
Department of General Services shall instead, for purposes of this
subdivision, be the sole responsibility of the lottery, which shall
have the sole authority to perform that function or role.
(d) Where a conflict exists between the provisions of this chapter
and any other provision of law, the provisions of this chapter shall
control.
SEC. 3. Section 8880.63 of the
Government Code is repealed.
8880.63. As nearly as practical, 50 percent of the total
projected revenue, computed on a fiscal-year basis, accruing from the
sales of all lottery tickets or shares shall be apportioned for
payment of prizes.
SEC. 4. Section 8880.64 of the
Government Code is amended to read:
8880.64. (a) Expenses of the lottery shall 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,
including, but not limited to, the costs of supplies, materials,
tickets, independent audit services, independent studies, data
transmission, advertising, promotion, incentives, public relations,
communications, compensation paid to the lottery game retailers,
bonding for lottery game retailers, printing, distribution of tickets
or shares, reimbursement of costs of services provided to the
lottery by other governmental entities, and for the costs for any
other goods and services necessary for effectuating the purposes of
this chapter pursuant to Section 8880.56 . As a
promotional expense, the commission may supplement the prize pool of
a game or games upon its determination that a supplement will benefit
the public purpose of this chapter.
(b) (1) Not more than 16 percent of the total annual revenues
accruing from the sale of all lottery tickets and shares from all
lottery games shall be expended for the payment of the expenses of
the lottery.
(2)
(b) Expenses recorded as a result of a nonmonetary
exchange shall not be considered an expense for the purposes of
Section 8880.4 and this section. "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.
SEC. 5. Section 8880.65 of the
Government Code is amended to read:
8880.65. Transfer of Net Revenues
The funds remaining in the State Lottery Fund after
accrual of all revenues to the State Lottery Fund, and
For the purposes of this chapter, the total revenues of the lottery
shall include all revenue received by the California State Lottery,
including, but not limited to, revenue from the sale of tickets or
shares, merchandising revenue, advertising revenue, interest earnings
on moneys in the State Lottery Fund, and unclaimed prizes returned
to or retained by the State Lottery Fund. The net revenues of the
lottery shall include total revenues remaining after accrual of
all obligations of the Lottery for prizes ,
and expenses , and the repayment of any funds advanced
from the temporary line of credit for initial startup costs and
interest thereon shall be deemed to be the net revenues of the
Lottery . The net revenues of the Lottery shall be
transferred from the State Lottery Fund not less than quarterly to
the California State Lottery Education Fund.
SEC. 6. 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, statewide
general election.
SEC. 7. 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:
Because the state is currently in a fiscal crisis, and this act
will generate much needed revenue, it is necessary that this act take
effect immediately.
SECTION 1. Section 22358.1 is added to the
Vehicle Code, to read:
22358.1. Notwithstanding any other law, the Department of
Transportation, in consultation with the Department of the California
Highway Patrol and interested parties as determined necessary by the
Department of Transportation, shall make an assessment as to whether
it is appropriate to establish in statute a new prima facie speed
limit with regard to undivided highways that were designed as rural
roads but are now in areas that have experienced substantial
residential development. In making its assessment, if the department
determines a new prima facie speed limit is appropriate, the
department shall recommend the new prima facie speed limit for these
roads and any conditions that should apply to the roads that would be
subject to the new speed limit. The department shall make a report
to the Senate Committee on Transportation and Housing and the
Assembly Committee on Transportation no later than June 30, 2010.