BILL ANALYSIS                                                                                                                                                                                                    �






                                                       Bill No:  SB 
          939
          
                 SENATE COMMITTEE ON GOVERNMENTAL ORGANIZATION
                       Senator Roderick D. Wright, Chair
                           2011-2012 Regular Session
                                 Bill Analysis


          SB 939  Author:  Senate Governmental Organization Committee 

          Introduced:  March 21, 2011
          Hearing Date:  May 10, 2011
          Consultant:  Paul Donahue


           SUBJECT  :  California State Lottery

           SUMMARY  :  This bill makes several technical and 
          non-substantive corrections to the California State Lottery 
          Act.
           
          Existing law  : 

          1) Proposition 37 was passed by the electorate in 1984, 
          enacting the California State Lottery Act, which provides 
          for the operation and administration of the state lottery 
          by the California State Lottery Commission and the Director 
          of the California State Lottery, with certain limitations.

          2) Specifies that not less than 87% 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, and that no more 
          than 13% of those revenues be used for expenses of the 
          lottery. 

          3) Provides that at least 34 percent of Lottery revenues 
          must go to public education.

          4) Provides that all unclaimed prize money reverts to the 
          benefit of public education, and that all of the interest 
          earned on funds deposited into the State Lottery Fund shall 
          be allocated to the benefit of public education.

          5) Requires 50% of the total annual lottery revenues be 




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          returned to the public in the form of prizes, and that 34% 
          of those revenues shall be used to benefit public 
          education.

          6) States that, to the extent that expenses of the lottery 
          are less than 13% of the total annual revenues, any surplus 
          funds shall be allocated to the benefit of public 
          education.

          7) Declares that none of the provisions of the State 
          Lottery Act may be changed, except for amendments that 
          further its purpose, and by a bill passed by 2/3 vote of 
          each house of the Legislature, and signed by the Governor.

           This bill  : Enacts several technical and non-substantive 
          corrections to the California State Lottery Act.
           COMMENTS  :

          1)  Purpose of the bill  :  This is a Committee bill, advanced 
          for the purpose of code maintenance, eliminating improper 
          cross-references and obsolete language contained in the 
          Lottery Act.  

          5)  Related legislation  :

           AB 142 (Hayashi, 2010)  made several reforms to the Lottery 
          Act of 1984 including authorizing the increase of prize 
          pay-outs so as to encourage greater Lottery sales, to 
          benefit public schools. (Stats. 2010, ch. 13)


           SUPPORT:   

          None on file

           OPPOSE:   

          None on file

           FISCAL COMMITTEE:   No 



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