BILL NUMBER: AB 363	INTRODUCED
	BILL TEXT


INTRODUCED BY   Assembly Member Hayashi

                        FEBRUARY 14, 2011

   An act to amend Section 8880.4.5 of the Government Code, relating
to the California State Lottery.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 363, as introduced, Hayashi. California State Lottery.
   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 requires the Controller, by September 1 of each fiscal
year for 5 years following the enactment of this provision, to report
to the Legislature whether specified events relating to the total
net revenues allocated to the benefit of public education have
occurred. Existing law further requires the Controller to convene a
lottery review group to report to the Legislature, no later than
December 31 following the final fiscal year of that 5-year period, on
whether certain provisions have furthered the purposes of the
California State Lottery Act of 1984.
   This bill would instead require the Controller to make those
reports by December 31 and February 28, respectively.
   The California State Lottery Act of 1984 provides 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 its provisions further the purposes
of the act.
   Vote: 2/3. Appropriation: no. Fiscal committee: no. State-mandated
local program: no.


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

  SECTION 1.  Section 8880.4.5 of the Government Code is amended to
read:
   8880.4.5.  (a) Following the end of each full fiscal year, the
commission shall calculate and report to the Controller and to the
Legislature the amount of total net revenues allocated to the benefit
of public education from the California State Lottery Education Fund
for that fiscal year.
   (b) To ensure increases in lottery net revenues allocated to
public education, if in any one of the first five full fiscal years
after the enactment of the act adding this section, the Controller
determines that both of the events described in paragraphs (1) and
(2) of subdivision (c) occur, then the Controller shall notify the
Legislature and the Governor, and post that notification on the
Controller's Internet Web site, and on January 1 of the following
year, both of the following shall occur:
   (1) The amendments made to Sections 8880.4, 8880.63, and 8880.64
by the act adding this section shall become inoperative.
   (2) Sections 8880.4, 8880.63, and 8880.64, as they existed prior
to the effective date of the act adding this section shall become
operative.
   (c) No later than  September 1   December 31
 following each of the first five fiscal years in which the
amendments made by the act adding this section are in effect, the
Controller shall report to the Legislature whether either of the
following occurred in the prior fiscal year:
   (1) The total net revenues allocated to the benefit of public
education from the California State Lottery Education Fund are less
than the total net revenues allocated to the benefit of public
education in the last full fiscal year prior to the enactment of the
act adding this section.
   (2) The annual average of total net revenues allocated to the
benefit of public education from the California State Lottery
Education Fund after the enactment of the act adding this section is
less than the total net revenues allocated to the benefit of public
education in the last full fiscal year prior to the enactment of the
act adding this section, adjusted for an annual growth rate of 1.8
percent or the actual growth rate of lottery revenues since enactment
of the act adding this section, whichever is greater.
   (d) If the conditions specified in subdivision (c) do not occur,
then in subsequent fiscal years, to ensure continued growth in
lottery net revenues allocated to public education, the commission,
when setting the percentage required in subparagraph (A) of paragraph
(2) of subdivision (a) of Section 8880.4, shall ensure that net
revenues allocated to public schools are at least as much as were
allocated on average in the prior five fiscal years, and increased in
proportion to any upward increases in lottery net revenues.
   (e) At the end of the first five full fiscal years following
enactment of the act adding this section, the Controller shall
convene a lottery review group to consist of the Controller, the
Superintendent of Public Instruction, and the chairperson of the
commission. The review group shall report to the Legislature, no
later than  December 31   February 28 
following the final fiscal year, on whether the amendments made by
the act adding this section have furthered the purposes of the
California State Lottery Act of 1984 as intended.
   (f) This section shall remain in effect only until December 31 of
the year of notification from the Controller to the Legislature and
the Governor that the events described in paragraphs (1) and (2) of
subdivision (c) have occurred, and as of that date is repealed,
unless a later enacted statute, that is enacted before December 31 of
that year, deletes or extends that date.
  SEC. 2.  The Legislature finds and declares that this act furthers
the purposes of the California State Lottery Act of 1984, enacted by
Proposition 37 at the November 6, 1984, general election.