BILL ANALYSIS �
AB 363
Page 1
ASSEMBLY THIRD READING
AB 363 (Hayashi)
As Amended April 14, 2011
2/3 vote
GOVERNMENTAL ORGANIZATION 15-0
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|Ayes:|Hall, Nestande, Atkins, | | |
| |Block, Chesbro, Cook, | | |
| |Galgiani, Gatto, Hill, | | |
| |Olsen, Ma, Perea, V. | | |
| |Manuel P�rez, Silva, | | |
| |Allen | | |
|-----+--------------------------+-----+--------------------------|
| | | | |
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SUMMARY : Extends the due date from December 31 to April 1 for
each of the next five years, on specified reporting requirements
regarding the California State Lottery Commission's efforts to
boost income for public education, as defined. Specifically,
this bill :
1)Changes the reporting date for the California State Controller
(Controller) to make specific reports to the Legislature from
December 31 to April 1, for each of the next five years,
regarding the State Lottery's efforts to boost income for
public education.
2)Extends the operation of the change described above until
April 1 of the year following notification of the Legislature
and the Governor by the Controller that specified events
relating to the total net revenues allocated to the benefit of
public education have occurred, and the prior law will be
restored at that time.
EXISTING LAW :
1)Authorizes, under the California State Lottery Act (Act) of
1984, enacted by initiative, a California State Lottery and
provides for its operation and administration by the
California State Lottery Commission (Commission) and the
Director of the California State Lottery, with certain
limitations.
AB 363
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2)Requires the Commission to establish the percentage of total
annual revenues of the state lottery to be allocated to the
benefit of public education at a level that maximizes the
total net revenues allocated for the benefit of public
education.
3)Requires the Controller, by September 1 of each fiscal year
for five 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 and, if so, to notify the Legislature
and the Governor.
4)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 five-year period, on whether
certain provisions have furthered the purposes of the Act.
5)States that those provisions shall remain in effect only until
December 31 of the year of notification from the Controller to
the Legislature and the Governor that those specified events
relating to the total net revenues allocated to the benefit of
public education have occurred, and the prior law will be
restored at that time.
FISCAL EFFECT : This bill has been keyed non-fiscal by
Legislative Counsel.
COMMENTS :
Purpose of the bill : AB 363 would extend the amount of time (by
four months and two months, respectively) the Controller has to
complete reports as required by AB 142 (Hayashi), Chapter 13,
Statutes of 2010, which enhances the funding benefit for
education through the Act.
The Act was passed by the voters in November 1984. The passage
of the Act created the Commission to oversee the lottery,
ensuring the integrity, security and fairness of the lottery
system and its games in California.
AB 142 (Hayashi), requires revenues of the state lottery to be
allocated to maximize the amount of funding allocated to the
AB 363
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public education system in California. The bill also requires
the Controller to report to the Legislature whether specified
events relating to the total net revenues allocated to the
benefit of public education have occurred and whether certain
provisions have furthered the purpose of the Act by September 1
and December 31, respectively, following the final fiscal year
of that five-year period.
However, completing the review by the dates required has been
problematic for the Controller's Office, as the Division of
Audits only receives the information necessary to conduct the
reports during the last week of August and the last week of
October, respectively. This bill would give the Division of
Audits the necessary time to perform a quarterly review and to
determine if the Lottery complied with AB 142 (Hayashi) by
extending the reporting deadlines.
Prior legislation : AB 142 (Hayashi) modifies the allocation
formula of the Act, also known as Proposition 37. Repeals the
modifications to the allocation formula if it is determined by
the Controller that the amount of revenues allocated to the
benefit of public education by the Lottery is less than what
would have been allocated if the law were not changed, as
specified.
Analysis Prepared by : Eric Johnson / G. O. / (916) 319-2531
FN: 0000624