AB 662

Bill Subjects

Abstract

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 be returned to the public in the form of prizes and net revenues to benefit public education, and that no more than 16% of the total annual revenues be used for the payment of expenses of the lottery. The act provides that expenses of the lottery include all costs incurred in the operation and administration of the lottery and all costs resulting from any contracts entered into for the purchase or lease of goods and services required by the lottery. This bill would make legislative findings regarding the proposed construction of a new lottery complex estimated to cost $185,000,000. The bill would prohibit the commission from proceeding with the construction of the California State Lottery Complex project, or any similar project, and would authorize the use of up to $40,000,000 for the renovation of any existing building used by the commission for lottery operations. The bill would require the commission to allocate for the benefit of public education the difference between $185,000,000 and the amount expended for renovation pursuant to these provisions. The bill would require that administrative funds saved by the imposition of any salary reductions on lottery employees be used only for providing services or benefits for those lottery employees, or for advertising or other marketing activities. 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 23 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 23 vote. This bill would declare that it is to take effect immediately as an urgency statute.