Senate votes to return more money to lottery winners

[Ayatollahgondola]

Lottery changes, but for what purpose. Looksd to me like the legislature just grabbed more control over it:

BILL NUMBER: AB 142 AMENDED
BILL TEXT

AMENDED IN SENATE MARCH 11, 2010
AMENDED IN SENATE FEBRUARY 1, 2010
AMENDED IN SENATE AUGUST 25, 2009
AMENDED IN ASSEMBLY APRIL 13, 2009

INTRODUCED BY Assembly Member Hayashi
(Principal coauthor: Senator Maldonado)

JANUARY 22, 2009

An act to amend, repeal, and add Sections 8880.4, 8880.63, and
8880.64 of, and to add and repeal Section 8880.4.5 of, the Government
Code, relating to the California State Lottery, making an
appropriation therefor, and declaring the urgency thereof, to take
effect immediately.



LEGISLATIVE COUNSEL'S DIGEST


AB 142, as amended, Hayashi. California State Lottery.
(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, with
certain limitations. The act requires that not less than 84% of the
total annual revenues from the sale of state lottery tickets or
shares be returned to the public in the form of prizes and net
revenues to benefit public education, and that no more than 16% of
those revenues be used for expenses of the lottery. The act further
specifies that, of that 84%, 50% of the total annual lottery revenues
be returned to the public in the form of prizes, and that at least
34% of those revenues be allocated to the benefit of public
education. The act establishes the State Lottery Fund, a continuously
appropriated fund for carrying out the purposes of the act.
This bill would require revenues of the state lottery to be
allocated so as to maximize the amount of funding allocated to public
education, and would require that not less than 87% of the total
annual revenues of the state lottery be returned to the public, and
no more than 13% be used for lottery expenses. The bill would further
specify that, of that 87%, not less than 50% of the total annual
lottery revenues, in an amount to be determined by the commission, be
returned to the public in the form of prizes. The bill would require
the commission to establish the percentage to be allocated to the
benefit of public education at a level that maximizes the total net
revenues allocated to the benefit of public education. By changing
these allocations, the bill would change the purposes for which the
funds of a continuously appropriated fund may be appropriated, and
thereby would make an appropriation. The bill would make other
conforming changes.
This bill would require the lottery, following the end of each
full fiscal year, to 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. The bill would require the
Controller, if in any one of the first 5 full fiscal years after the
enactment of this measure, the Controller determines that specified
events occur, to notify the Legislature and the Governor, and post
that notification on its the Controller's
Internet Web site. The bill would then provide for the repeal
of the changes made by this measure on the following January 1, and
the prior law to be restored. If those events do not occur, the bill
would require the commission, when setting the percentage to be
allocated to the benefit of public education, to ensure that net
revenues allocated to public schools are at least as much as were
allocated on average in the prior 5 fiscal years, and increased in
proportion to any upward increases in lottery net revenues. The bill
would require the Controller, at the end of the first 5 full fiscal
years following enactment of this measure, to convene a lottery
review group to report to the Legislature, no later than December 31
following the final fiscal year, on whether the amendments made by
this measure have furthered the purposes of the California State
Lottery Act of 1984 as intended.
(2) The California Constitution authorizes the Governor to declare
a fiscal emergency and to call the Legislature into special session
for that purpose. The Governor issued a proclamation declaring a
fiscal emergency, and calling a special session for this purpose, on
January 8, 2010.
This bill would state that it addresses the fiscal emergency
declared by the Governor by proclamation issued on January 8, 2010,
pursuant to the California Constitution.
(3)
(2) The California State Lottery Act of 1984, an
initiative measure, specifies 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 it furthers the purpose of the act
and would require a 2/3 vote as an amendment of that act.
(4)
(3) This bill would declare that it is to take effect
immediately as an urgency statute.
Vote: 2/3. Appropriation: yes. Fiscal committee: yes.
State-mandated local program: no.


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

[ilbegone]

I believe it may have something to do with enlarging participation in the lottery.

If I remember right (and I'm am not sure of the factuality of this scenario), an official query was sent forth two or three years ago as to why California lottery sales are down.

The answer received was that to prime the lottery money pump, you have to have some winners.