AB 25

Bill Subjects

Abstract

(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 provides that none of its provisions may be changed by the Legislature except to further its purpose by a bill passed by a23 vote of each house of the Legislature and signed by the Governor. This bill would authorize the Lottery Commission to purchase and sell assets in its own name, invest funds on deposit in the State Lottery Fund within or outside the State Treasury system, and purchase and sell securities, including entering into bond purchase agreements with the state to purchase state general obligation bonds, or invest in other evidence of indebtedness issued by the state. The bill would declare that it furthers the purpose of the act. (2) Existing law specifies the types of securities that are eligible for the investment of surplus state funds. This bill would additionally include warrants and negotiable order of withdrawal accounts as being eligible for this investment. (3) Existing law requires the Board of Directors of the State Compensation Insurance Fund to invest moneys in the State Compensation Insurance Fund that are in excess of current requirements to be invested and reinvested, in the same manner as provided for private insurance carriers. This bill would authorize the State Compensation Insurance Fund to purchase any general obligation bonds or other evidence of indebtedness issued by the state, including notes or warrants, in any amount and to enter into purchase contracts with the state for this purpose. (4) 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 July 1, 2009. This bill would state that it addresses the fiscal emergency declared by the Governor by proclamation issued on July 1, 2009, pursuant to the California Constitution. (5) This bill would declare that it is to take effect immediately as an urgency statute.