BILL ANALYSIS �
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|SENATE RULES COMMITTEE | AB 363|
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CONSENT
Bill No: AB 363
Author: Hayashi (D)
Amended: 4/14/11 in Assembly
Vote: 27
SENATE GOVERNMENTAL ORG. COMMITTEE : 12-0, 6/14/11
AYES: Wright, Anderson, Calderon, Cannella, Corbett, De
Le�n, Evans, Hernandez, Padilla, Strickland, Wyland, Yee
NO VOTE RECORDED: Berryhill
ASSEMBLY FLOOR : 78-0, 5/19/11 - See last page for vote
SUBJECT : California State Lottery
SOURCE : John Chiang, California State Controller
DIGEST : 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, and (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.
ANALYSIS :
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Existing law :
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.
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 Lottery Act.
5. Under existing law, 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.
This bill:
1. Changes the reporting date for the California State
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.
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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.
Background
AB 142 (Hayashi) of 2010 required the State Lottery to
allocate revenues to maximize the amount of funding
allocated to the public education system in California.
The bill also required 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 actions have furthered
the purpose of the California State Lottery Act. The
reports are due September 1 and December 31, respectively,
following the final fiscal year of that five-year period.
The State Controller's office reports that completing the
review by the dates required by law has been problematic
because 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. By extending these deadlines a few months,
this bill would provide the Division of Audits with the
necessary time to perform a quarterly review and to
determine if the Lottery is in compliance with AB 142.
Related legislation
AB 142 (Hayashi), Chapter 13, Statutes 2010, modified the
allocation formula of the Act of 1984, also known as
Proposition 37. Repeals the modifications to the
allocation formula if the Controller determines that
revenues allocated to the benefit of public education by
the Lottery are less than what would have been allocated if
the law were not changed.
FISCAL EFFECT : Appropriation: No Fiscal Com.: No
Local: No
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SUPPORT : (Verified 6/14/11)
John Chiang, California State Controller (source)
ARGUMENTS IN SUPPORT : In support of the bill, the
Controller states that this bill would provide his office
with additional time to review and report on the State
Lottery's allocations to public education by extending the
deadline to determine whether total net revenues allocated
by the State Lottery has increased or decreased for the
next five years, beginning in 2010.
ASSEMBLY FLOOR :
AYES: Achadjian, Allen, Ammiano, Atkins, Beall, Bill
Berryhill, Block, Blumenfield, Bonilla, Bradford,
Brownley, Buchanan, Butler, Charles Calderon, Campos,
Carter, Cedillo, Chesbro, Conway, Cook, Davis, Dickinson,
Donnelly, Eng, Feuer, Fletcher, Fong, Fuentes, Furutani,
Beth Gaines, Galgiani, Garrick, Gatto, Gordon, Grove,
Hagman, Halderman, Hall, Harkey, Hayashi, Roger
Hern�ndez, Hill, Huber, Hueso, Huffman, Jeffries, Jones,
Knight, Lara, Logue, Bonnie Lowenthal, Ma, Mansoor,
Mendoza, Miller, Mitchell, Monning, Morrell, Nestande,
Nielsen, Norby, Olsen, Pan, Perea, V. Manuel P�rez,
Portantino, Silva, Skinner, Smyth, Solorio, Swanson,
Torres, Valadao, Wagner, Wieckowski, Williams, Yamada,
John A. P�rez
NO VOTE RECORDED: Alejo, Gorell
PQ:do 6/15/11 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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