BILL ANALYSIS                                                                                                                                                                                                    �



                                                                      



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          |SENATE RULES COMMITTEE            |                   SB 939|
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                                    CONSENT


          Bill No:  SB 939
          Author:   Senate Governmental Organization Committee
          Amended:  As introduced
          Vote:     21

           
           SENATE GOVERNMENTAL ORGANIZATION COMM.  :  11-0, 5/10/11
          AYES:  Wright, Anderson, Berryhill, Cannella, Corbett, De 
            Le�n, Evans, Hernandez, Padilla, Strickland, Wyland
          NO VOTE RECORDED:  Calderon, Yee


           SUBJECT  :    California State Lottery

           SOURCE  :     Author


           DIGEST  :    This bill makes several technical and 
          nonsubstantive corrections to the California State Lottery 
          Act.

           ANALYSIS  :    

          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 percent of the total 
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             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 percent 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 percent of the total annual lottery revenues 
             be returned to the public in the form of prizes, and 
             that 34 percent 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 percent 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 two-thirds 
             vote of each house of the Legislature, and signed by the 
             Governor.
           
           This bill enacts several technical and nonsubstantive 
          corrections to the California State Lottery Act.

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

           Prior Legislation  

          AB 142 (Hayashi), Chapter 13, Statutes of 2010, made 
          several reforms to the Lottery Act of 1984 including 







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          authorizing the increase of prize pay-outs so as to 
          encourage greater Lottery sales, to benefit public schools.

           FISCAL EFFECT  :    Appropriation:  No   Fiscal Com.:  No   
          Local:  No


          PQ:mw  5/10/11   Senate Floor Analyses 

                       SUPPORT/OPPOSITION:  NONE RECEIVED

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