| 1 | 1 | | CALIFORNIA LEGISLATURE 20172018 REGULAR SESSION Assembly Bill No. 2824Introduced by Assembly Member GrayFebruary 16, 2018 An act to amend Section 8880.4 of the Government Code, relating to the California State Lottery, and making an appropriation therefor. LEGISLATIVE COUNSEL'S DIGESTAB 2824, as introduced, Gray. California State Lottery: revenue allocations: Office of Problem Gambling.(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 the revenues of the state lottery to be allocated, in specified percentages, to public education, prizes, and to pay allowable expenses of the lottery. Existing law modifies the specified percentages of lottery revenues allocated to these purposes on the occurrence of certain events. The act establishes the State Lottery Fund as a continuously appropriated fund for carrying out the purposes of the act.Existing law establishes the Office of Problem Gambling and requires the office to develop gambling disorder prevention and treatment programs that consist of certain enumerated components.This bill would require an unspecified percentage of the amount of lottery revenues allocated to pay allowable expenses of the lottery to instead be allocated to the Office of Problem Gambling to support gambling disorder prevention and treatment programs. By changing the purposes for which the funds of a continuously appropriated fund may be appropriated, the bill would make an appropriation.(2) The California State Lottery Act of 1984 provides 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 its provisions further the purposes of the act.Digest Key Vote: 2/3 Appropriation: YES Fiscal Committee: YES Local Program: NO Bill TextThe people of the State of California do enact as follows:SECTION 1. Section 8880.4 of the Government Code, as amended by Section 1 of Chapter 56 of the Statutes of 2011, is amended to read:8880.4. Revenues of the state lottery shall be allocated so as to maximize the amount of funding allocated to public education, including from the first full fiscal year following enactment of the act adding Section 8880.4.5, as follows:(a) Not less than 87 percent 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.(1) The commission shall determine the percentage of total annual revenues that shall be returned to the public in the form of prizes as described in this chapter, however the percentage shall not be less than 50 percent of the total revenues.(2) (A) The percentage of the total annual revenues to be allocated to the benefit of public education, as specified in Section 8880.5, shall be established by the commission at a level that maximizes the total net revenues allocated to the benefit of public education.(B) However, for the 199899 fiscal year and each fiscal year thereafter, 50 percent of any increase in the amount calculated pursuant to this paragraph from the amount calculated in the 199798 fiscal year shall be allocated to school districts and community college districts for the purchase of instructional materials, on the basis of an equal amount per unit of average daily attendance, as defined by law, and through a fair and equitable distribution system across grade levels.(3) All unclaimed prize money shall revert to the benefit of public education, as provided for in subdivision (e) of Section 8880.32.(4) All of the interest earned upon funds held in the State Lottery Fund shall be allocated to the benefit of public education, as specified in Section 8880.5. This interest is in addition to, and shall not be considered as any part of, the total annual revenues that are required to be allocated for the benefit of public education as specified in paragraph (2).(5) (A) No more than 13 percent of the total annual revenues shall be allocated for payment of expenses of the lottery as described in this chapter. To the extent that expenses of the lottery are less than 13 percent of the total annual revenues, any surplus funds also shall be allocated to the benefit of public education, as specified in this section or in Section 8880.5.(B) From the amount allocated pursuant to subparagraph (A), ____percent shall be allocated to the Office of Problem Gambling, as established pursuant to Section 4369 of the Welfare and Institutions Code, for the purpose of supporting the gambling disorder prevention and treatment programs described in Section 4369.2 of the Welfare and Institutions Code.(b) Funds allocated for the benefit of public education pursuant to subdivision (a) are in addition to other funds appropriated or required under existing constitutional reservations for educational purposes. No program shall have the amount appropriated to support that program reduced as a result of funds allocated pursuant to subdivision (a). Funds allocated for the benefit of public education pursuant to subdivision (a) shall not supplant funds committed for child development programs.(c) None of the following shall be considered revenues for the purposes of this section:(1) Revenues recorded as a result of a nonmonetary exchange. Nonmonetary exchange means a reciprocal transfer, in compliance with generally accepted accounting principles, between the lottery and another entity that results in the lottery acquiring assets or services and the lottery providing assets or services.(2) Reimbursements received by the lottery for the cost of goods or services provided by the lottery that are less than or equal to the cost of the same goods or services provided by the lottery.(d) Reimbursements received in excess of the cost of the same goods and services provided by the lottery, as specified in paragraph (2) of subdivision (c), are not a part of the total annual revenues required to be allocated for the benefit of public education, as specified in paragraph (2) of subdivision (a). However, this amount shall be allocated for the benefit of public education as specified in Section 8880.5.(e) This section shall become inoperative on April 1 of the year following notification from the Controller to the Legislature and the Governor that the events described in paragraphs (1) and (2) of subdivision (c) of Section 8880.4.5 have occurred, and as of the following January 1 is repealed, unless a later enacted statute, that is enacted before January 1 of that following year, deletes or extends the dates on which it becomes inoperative and is repealed.SEC. 2. Section 8880.4 of the Government Code, as amended by Section 2 of Chapter 56 of the Statutes of 2011, is amended to read:8880.4. Revenues of the state lottery shall be allocated as follows:(a) Not less than 84 percent 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.(1) Fifty percent of the total annual revenues shall be returned to the public in the form of prizes as described in this chapter.(2) At least 34 percent of the total annual revenues shall be allocated to the benefit of public education, as specified in Section 8880.5. However, for the 199899 fiscal year and each fiscal year thereafter, 50 percent of any increase in the amount calculated pursuant to this paragraph from the amount calculated in the 199798 fiscal year shall be allocated to school districts and community college districts for the purchase of instructional materials, on the basis of an equal amount per unit of average daily attendance, as defined by law, and through a fair and equitable distribution system across grade levels.(3) All unclaimed prize money shall revert to the benefit of public education, as provided for in subdivision (e) of Section 8880.32.(4) All of the interest earned upon funds held in the State Lottery Fund shall be allocated to the benefit of public education, as specified in Section 8880.5. This interest is in addition to, and shall not be considered as any part of, the 34 percent of the total annual revenues that is required to be allocated for the benefit of public education as specified in paragraph (2).(5) (A) No more than 16 percent of the total annual revenues shall be allocated for payment of expenses of the lottery as described in this chapter. To the extent that expenses of the lottery are less than 16 percent of the total annual revenues, any surplus funds also shall be allocated to the benefit of public education, as specified in this section or in Section 8880.5.(B) From the amount allocated pursuant to subparagraph (A), ____percent shall be allocated to the Office of Problem Gambling, as established pursuant to Section 4369 of the Welfare and Institutions Code, for the purpose of supporting the gambling disorder prevention and treatment programs described in Section 4369.2 of the Welfare and Institutions Code.(b) Funds allocated for the benefit of public education pursuant to subdivision (a) are in addition to other funds appropriated or required under existing constitutional reservations for educational purposes. No program shall have the amount appropriated to support that program reduced as a result of funds allocated pursuant to subdivision (a). Funds allocated for the benefit of public education pursuant to subdivision (a) shall not supplant funds committed for child development programs.(c) None of the following shall be considered revenues for the purposes of this section:(1) Revenues recorded as a result of a nonmonetary exchange. Nonmonetary exchange means a reciprocal transfer, in compliance with generally accepted accounting principles, between the lottery and another entity that results in the lottery acquiring assets or services and the lottery providing assets or services.(2) Reimbursements received by the lottery for the cost of goods or services provided by the lottery that are less than or equal to the cost of the same goods or services provided by the lottery.(d) Reimbursements received in excess of the cost of the same goods and services provided by the lottery, as specified in paragraph (2) of subdivision (c), are not a part of the 34 percent of total annual revenues required to be allocated for the benefit of public education, as specified in paragraph (2) of subdivision (a). However, this amount shall be allocated for the benefit of public education as specified in Section 8880.5.(e) This section shall become operative on April 1 of the year following notification from the Controller to the Legislature and the Governor that the events described in paragraphs (1) and (2) of subdivision (c) of Section 8880.4.5 have occurred.SEC. 3. The Legislature finds and declares that this act furthers the purpose of the California State Lottery Act of 1984, enacted by Proposition 37 at the November 6, 1984, general election. |
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| 3 | 3 | | CALIFORNIA LEGISLATURE 20172018 REGULAR SESSION Assembly Bill No. 2824Introduced by Assembly Member GrayFebruary 16, 2018 An act to amend Section 8880.4 of the Government Code, relating to the California State Lottery, and making an appropriation therefor. LEGISLATIVE COUNSEL'S DIGESTAB 2824, as introduced, Gray. California State Lottery: revenue allocations: Office of Problem Gambling.(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 the revenues of the state lottery to be allocated, in specified percentages, to public education, prizes, and to pay allowable expenses of the lottery. Existing law modifies the specified percentages of lottery revenues allocated to these purposes on the occurrence of certain events. The act establishes the State Lottery Fund as a continuously appropriated fund for carrying out the purposes of the act.Existing law establishes the Office of Problem Gambling and requires the office to develop gambling disorder prevention and treatment programs that consist of certain enumerated components.This bill would require an unspecified percentage of the amount of lottery revenues allocated to pay allowable expenses of the lottery to instead be allocated to the Office of Problem Gambling to support gambling disorder prevention and treatment programs. By changing the purposes for which the funds of a continuously appropriated fund may be appropriated, the bill would make an appropriation.(2) The California State Lottery Act of 1984 provides 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 its provisions further the purposes of the act.Digest Key Vote: 2/3 Appropriation: YES Fiscal Committee: YES Local Program: NO |
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| 9 | 9 | | CALIFORNIA LEGISLATURE 20172018 REGULAR SESSION |
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| 11 | 11 | | Assembly Bill No. 2824 |
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| 13 | 13 | | Introduced by Assembly Member GrayFebruary 16, 2018 |
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| 15 | 15 | | Introduced by Assembly Member Gray |
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| 16 | 16 | | February 16, 2018 |
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| 18 | 18 | | An act to amend Section 8880.4 of the Government Code, relating to the California State Lottery, and making an appropriation therefor. |
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| 20 | 20 | | LEGISLATIVE COUNSEL'S DIGEST |
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| 22 | 22 | | ## LEGISLATIVE COUNSEL'S DIGEST |
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| 24 | 24 | | AB 2824, as introduced, Gray. California State Lottery: revenue allocations: Office of Problem Gambling. |
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| 26 | 26 | | (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 the revenues of the state lottery to be allocated, in specified percentages, to public education, prizes, and to pay allowable expenses of the lottery. Existing law modifies the specified percentages of lottery revenues allocated to these purposes on the occurrence of certain events. The act establishes the State Lottery Fund as a continuously appropriated fund for carrying out the purposes of the act.Existing law establishes the Office of Problem Gambling and requires the office to develop gambling disorder prevention and treatment programs that consist of certain enumerated components.This bill would require an unspecified percentage of the amount of lottery revenues allocated to pay allowable expenses of the lottery to instead be allocated to the Office of Problem Gambling to support gambling disorder prevention and treatment programs. By changing the purposes for which the funds of a continuously appropriated fund may be appropriated, the bill would make an appropriation.(2) The California State Lottery Act of 1984 provides 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 its provisions further the purposes of the act. |
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| 28 | 28 | | (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 the revenues of the state lottery to be allocated, in specified percentages, to public education, prizes, and to pay allowable expenses of the lottery. Existing law modifies the specified percentages of lottery revenues allocated to these purposes on the occurrence of certain events. The act establishes the State Lottery Fund as a continuously appropriated fund for carrying out the purposes of the act. |
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| 30 | 30 | | Existing law establishes the Office of Problem Gambling and requires the office to develop gambling disorder prevention and treatment programs that consist of certain enumerated components. |
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| 32 | 32 | | This bill would require an unspecified percentage of the amount of lottery revenues allocated to pay allowable expenses of the lottery to instead be allocated to the Office of Problem Gambling to support gambling disorder prevention and treatment programs. By changing the purposes for which the funds of a continuously appropriated fund may be appropriated, the bill would make an appropriation. |
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| 34 | 34 | | (2) The California State Lottery Act of 1984 provides 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. |
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| 36 | 36 | | This bill would declare that its provisions further the purposes of the act. |
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| 37 | 37 | | |
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| 38 | 38 | | ## Digest Key |
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| 40 | 40 | | ## Bill Text |
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| 42 | 42 | | The people of the State of California do enact as follows:SECTION 1. Section 8880.4 of the Government Code, as amended by Section 1 of Chapter 56 of the Statutes of 2011, is amended to read:8880.4. Revenues of the state lottery shall be allocated so as to maximize the amount of funding allocated to public education, including from the first full fiscal year following enactment of the act adding Section 8880.4.5, as follows:(a) Not less than 87 percent 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.(1) The commission shall determine the percentage of total annual revenues that shall be returned to the public in the form of prizes as described in this chapter, however the percentage shall not be less than 50 percent of the total revenues.(2) (A) The percentage of the total annual revenues to be allocated to the benefit of public education, as specified in Section 8880.5, shall be established by the commission at a level that maximizes the total net revenues allocated to the benefit of public education.(B) However, for the 199899 fiscal year and each fiscal year thereafter, 50 percent of any increase in the amount calculated pursuant to this paragraph from the amount calculated in the 199798 fiscal year shall be allocated to school districts and community college districts for the purchase of instructional materials, on the basis of an equal amount per unit of average daily attendance, as defined by law, and through a fair and equitable distribution system across grade levels.(3) All unclaimed prize money shall revert to the benefit of public education, as provided for in subdivision (e) of Section 8880.32.(4) All of the interest earned upon funds held in the State Lottery Fund shall be allocated to the benefit of public education, as specified in Section 8880.5. This interest is in addition to, and shall not be considered as any part of, the total annual revenues that are required to be allocated for the benefit of public education as specified in paragraph (2).(5) (A) No more than 13 percent of the total annual revenues shall be allocated for payment of expenses of the lottery as described in this chapter. To the extent that expenses of the lottery are less than 13 percent of the total annual revenues, any surplus funds also shall be allocated to the benefit of public education, as specified in this section or in Section 8880.5.(B) From the amount allocated pursuant to subparagraph (A), ____percent shall be allocated to the Office of Problem Gambling, as established pursuant to Section 4369 of the Welfare and Institutions Code, for the purpose of supporting the gambling disorder prevention and treatment programs described in Section 4369.2 of the Welfare and Institutions Code.(b) Funds allocated for the benefit of public education pursuant to subdivision (a) are in addition to other funds appropriated or required under existing constitutional reservations for educational purposes. No program shall have the amount appropriated to support that program reduced as a result of funds allocated pursuant to subdivision (a). Funds allocated for the benefit of public education pursuant to subdivision (a) shall not supplant funds committed for child development programs.(c) None of the following shall be considered revenues for the purposes of this section:(1) Revenues recorded as a result of a nonmonetary exchange. Nonmonetary exchange means a reciprocal transfer, in compliance with generally accepted accounting principles, between the lottery and another entity that results in the lottery acquiring assets or services and the lottery providing assets or services.(2) Reimbursements received by the lottery for the cost of goods or services provided by the lottery that are less than or equal to the cost of the same goods or services provided by the lottery.(d) Reimbursements received in excess of the cost of the same goods and services provided by the lottery, as specified in paragraph (2) of subdivision (c), are not a part of the total annual revenues required to be allocated for the benefit of public education, as specified in paragraph (2) of subdivision (a). However, this amount shall be allocated for the benefit of public education as specified in Section 8880.5.(e) This section shall become inoperative on April 1 of the year following notification from the Controller to the Legislature and the Governor that the events described in paragraphs (1) and (2) of subdivision (c) of Section 8880.4.5 have occurred, and as of the following January 1 is repealed, unless a later enacted statute, that is enacted before January 1 of that following year, deletes or extends the dates on which it becomes inoperative and is repealed.SEC. 2. Section 8880.4 of the Government Code, as amended by Section 2 of Chapter 56 of the Statutes of 2011, is amended to read:8880.4. Revenues of the state lottery shall be allocated as follows:(a) Not less than 84 percent 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.(1) Fifty percent of the total annual revenues shall be returned to the public in the form of prizes as described in this chapter.(2) At least 34 percent of the total annual revenues shall be allocated to the benefit of public education, as specified in Section 8880.5. However, for the 199899 fiscal year and each fiscal year thereafter, 50 percent of any increase in the amount calculated pursuant to this paragraph from the amount calculated in the 199798 fiscal year shall be allocated to school districts and community college districts for the purchase of instructional materials, on the basis of an equal amount per unit of average daily attendance, as defined by law, and through a fair and equitable distribution system across grade levels.(3) All unclaimed prize money shall revert to the benefit of public education, as provided for in subdivision (e) of Section 8880.32.(4) All of the interest earned upon funds held in the State Lottery Fund shall be allocated to the benefit of public education, as specified in Section 8880.5. This interest is in addition to, and shall not be considered as any part of, the 34 percent of the total annual revenues that is required to be allocated for the benefit of public education as specified in paragraph (2).(5) (A) No more than 16 percent of the total annual revenues shall be allocated for payment of expenses of the lottery as described in this chapter. To the extent that expenses of the lottery are less than 16 percent of the total annual revenues, any surplus funds also shall be allocated to the benefit of public education, as specified in this section or in Section 8880.5.(B) From the amount allocated pursuant to subparagraph (A), ____percent shall be allocated to the Office of Problem Gambling, as established pursuant to Section 4369 of the Welfare and Institutions Code, for the purpose of supporting the gambling disorder prevention and treatment programs described in Section 4369.2 of the Welfare and Institutions Code.(b) Funds allocated for the benefit of public education pursuant to subdivision (a) are in addition to other funds appropriated or required under existing constitutional reservations for educational purposes. No program shall have the amount appropriated to support that program reduced as a result of funds allocated pursuant to subdivision (a). Funds allocated for the benefit of public education pursuant to subdivision (a) shall not supplant funds committed for child development programs.(c) None of the following shall be considered revenues for the purposes of this section:(1) Revenues recorded as a result of a nonmonetary exchange. Nonmonetary exchange means a reciprocal transfer, in compliance with generally accepted accounting principles, between the lottery and another entity that results in the lottery acquiring assets or services and the lottery providing assets or services.(2) Reimbursements received by the lottery for the cost of goods or services provided by the lottery that are less than or equal to the cost of the same goods or services provided by the lottery.(d) Reimbursements received in excess of the cost of the same goods and services provided by the lottery, as specified in paragraph (2) of subdivision (c), are not a part of the 34 percent of total annual revenues required to be allocated for the benefit of public education, as specified in paragraph (2) of subdivision (a). However, this amount shall be allocated for the benefit of public education as specified in Section 8880.5.(e) This section shall become operative on April 1 of the year following notification from the Controller to the Legislature and the Governor that the events described in paragraphs (1) and (2) of subdivision (c) of Section 8880.4.5 have occurred.SEC. 3. The Legislature finds and declares that this act furthers the purpose of the California State Lottery Act of 1984, enacted by Proposition 37 at the November 6, 1984, general election. |
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| 44 | 44 | | The people of the State of California do enact as follows: |
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| 46 | 46 | | ## The people of the State of California do enact as follows: |
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| 48 | 48 | | SECTION 1. Section 8880.4 of the Government Code, as amended by Section 1 of Chapter 56 of the Statutes of 2011, is amended to read:8880.4. Revenues of the state lottery shall be allocated so as to maximize the amount of funding allocated to public education, including from the first full fiscal year following enactment of the act adding Section 8880.4.5, as follows:(a) Not less than 87 percent 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.(1) The commission shall determine the percentage of total annual revenues that shall be returned to the public in the form of prizes as described in this chapter, however the percentage shall not be less than 50 percent of the total revenues.(2) (A) The percentage of the total annual revenues to be allocated to the benefit of public education, as specified in Section 8880.5, shall be established by the commission at a level that maximizes the total net revenues allocated to the benefit of public education.(B) However, for the 199899 fiscal year and each fiscal year thereafter, 50 percent of any increase in the amount calculated pursuant to this paragraph from the amount calculated in the 199798 fiscal year shall be allocated to school districts and community college districts for the purchase of instructional materials, on the basis of an equal amount per unit of average daily attendance, as defined by law, and through a fair and equitable distribution system across grade levels.(3) All unclaimed prize money shall revert to the benefit of public education, as provided for in subdivision (e) of Section 8880.32.(4) All of the interest earned upon funds held in the State Lottery Fund shall be allocated to the benefit of public education, as specified in Section 8880.5. This interest is in addition to, and shall not be considered as any part of, the total annual revenues that are required to be allocated for the benefit of public education as specified in paragraph (2).(5) (A) No more than 13 percent of the total annual revenues shall be allocated for payment of expenses of the lottery as described in this chapter. To the extent that expenses of the lottery are less than 13 percent of the total annual revenues, any surplus funds also shall be allocated to the benefit of public education, as specified in this section or in Section 8880.5.(B) From the amount allocated pursuant to subparagraph (A), ____percent shall be allocated to the Office of Problem Gambling, as established pursuant to Section 4369 of the Welfare and Institutions Code, for the purpose of supporting the gambling disorder prevention and treatment programs described in Section 4369.2 of the Welfare and Institutions Code.(b) Funds allocated for the benefit of public education pursuant to subdivision (a) are in addition to other funds appropriated or required under existing constitutional reservations for educational purposes. No program shall have the amount appropriated to support that program reduced as a result of funds allocated pursuant to subdivision (a). Funds allocated for the benefit of public education pursuant to subdivision (a) shall not supplant funds committed for child development programs.(c) None of the following shall be considered revenues for the purposes of this section:(1) Revenues recorded as a result of a nonmonetary exchange. Nonmonetary exchange means a reciprocal transfer, in compliance with generally accepted accounting principles, between the lottery and another entity that results in the lottery acquiring assets or services and the lottery providing assets or services.(2) Reimbursements received by the lottery for the cost of goods or services provided by the lottery that are less than or equal to the cost of the same goods or services provided by the lottery.(d) Reimbursements received in excess of the cost of the same goods and services provided by the lottery, as specified in paragraph (2) of subdivision (c), are not a part of the total annual revenues required to be allocated for the benefit of public education, as specified in paragraph (2) of subdivision (a). However, this amount shall be allocated for the benefit of public education as specified in Section 8880.5.(e) This section shall become inoperative on April 1 of the year following notification from the Controller to the Legislature and the Governor that the events described in paragraphs (1) and (2) of subdivision (c) of Section 8880.4.5 have occurred, and as of the following January 1 is repealed, unless a later enacted statute, that is enacted before January 1 of that following year, deletes or extends the dates on which it becomes inoperative and is repealed. |
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| 50 | 50 | | SECTION 1. Section 8880.4 of the Government Code, as amended by Section 1 of Chapter 56 of the Statutes of 2011, is amended to read: |
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| 52 | 52 | | ### SECTION 1. |
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| 54 | 54 | | 8880.4. Revenues of the state lottery shall be allocated so as to maximize the amount of funding allocated to public education, including from the first full fiscal year following enactment of the act adding Section 8880.4.5, as follows:(a) Not less than 87 percent 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.(1) The commission shall determine the percentage of total annual revenues that shall be returned to the public in the form of prizes as described in this chapter, however the percentage shall not be less than 50 percent of the total revenues.(2) (A) The percentage of the total annual revenues to be allocated to the benefit of public education, as specified in Section 8880.5, shall be established by the commission at a level that maximizes the total net revenues allocated to the benefit of public education.(B) However, for the 199899 fiscal year and each fiscal year thereafter, 50 percent of any increase in the amount calculated pursuant to this paragraph from the amount calculated in the 199798 fiscal year shall be allocated to school districts and community college districts for the purchase of instructional materials, on the basis of an equal amount per unit of average daily attendance, as defined by law, and through a fair and equitable distribution system across grade levels.(3) All unclaimed prize money shall revert to the benefit of public education, as provided for in subdivision (e) of Section 8880.32.(4) All of the interest earned upon funds held in the State Lottery Fund shall be allocated to the benefit of public education, as specified in Section 8880.5. This interest is in addition to, and shall not be considered as any part of, the total annual revenues that are required to be allocated for the benefit of public education as specified in paragraph (2).(5) (A) No more than 13 percent of the total annual revenues shall be allocated for payment of expenses of the lottery as described in this chapter. To the extent that expenses of the lottery are less than 13 percent of the total annual revenues, any surplus funds also shall be allocated to the benefit of public education, as specified in this section or in Section 8880.5.(B) From the amount allocated pursuant to subparagraph (A), ____percent shall be allocated to the Office of Problem Gambling, as established pursuant to Section 4369 of the Welfare and Institutions Code, for the purpose of supporting the gambling disorder prevention and treatment programs described in Section 4369.2 of the Welfare and Institutions Code.(b) Funds allocated for the benefit of public education pursuant to subdivision (a) are in addition to other funds appropriated or required under existing constitutional reservations for educational purposes. No program shall have the amount appropriated to support that program reduced as a result of funds allocated pursuant to subdivision (a). Funds allocated for the benefit of public education pursuant to subdivision (a) shall not supplant funds committed for child development programs.(c) None of the following shall be considered revenues for the purposes of this section:(1) Revenues recorded as a result of a nonmonetary exchange. Nonmonetary exchange means a reciprocal transfer, in compliance with generally accepted accounting principles, between the lottery and another entity that results in the lottery acquiring assets or services and the lottery providing assets or services.(2) Reimbursements received by the lottery for the cost of goods or services provided by the lottery that are less than or equal to the cost of the same goods or services provided by the lottery.(d) Reimbursements received in excess of the cost of the same goods and services provided by the lottery, as specified in paragraph (2) of subdivision (c), are not a part of the total annual revenues required to be allocated for the benefit of public education, as specified in paragraph (2) of subdivision (a). However, this amount shall be allocated for the benefit of public education as specified in Section 8880.5.(e) This section shall become inoperative on April 1 of the year following notification from the Controller to the Legislature and the Governor that the events described in paragraphs (1) and (2) of subdivision (c) of Section 8880.4.5 have occurred, and as of the following January 1 is repealed, unless a later enacted statute, that is enacted before January 1 of that following year, deletes or extends the dates on which it becomes inoperative and is repealed. |
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| 55 | 55 | | |
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| 56 | 56 | | 8880.4. Revenues of the state lottery shall be allocated so as to maximize the amount of funding allocated to public education, including from the first full fiscal year following enactment of the act adding Section 8880.4.5, as follows:(a) Not less than 87 percent 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.(1) The commission shall determine the percentage of total annual revenues that shall be returned to the public in the form of prizes as described in this chapter, however the percentage shall not be less than 50 percent of the total revenues.(2) (A) The percentage of the total annual revenues to be allocated to the benefit of public education, as specified in Section 8880.5, shall be established by the commission at a level that maximizes the total net revenues allocated to the benefit of public education.(B) However, for the 199899 fiscal year and each fiscal year thereafter, 50 percent of any increase in the amount calculated pursuant to this paragraph from the amount calculated in the 199798 fiscal year shall be allocated to school districts and community college districts for the purchase of instructional materials, on the basis of an equal amount per unit of average daily attendance, as defined by law, and through a fair and equitable distribution system across grade levels.(3) All unclaimed prize money shall revert to the benefit of public education, as provided for in subdivision (e) of Section 8880.32.(4) All of the interest earned upon funds held in the State Lottery Fund shall be allocated to the benefit of public education, as specified in Section 8880.5. This interest is in addition to, and shall not be considered as any part of, the total annual revenues that are required to be allocated for the benefit of public education as specified in paragraph (2).(5) (A) No more than 13 percent of the total annual revenues shall be allocated for payment of expenses of the lottery as described in this chapter. To the extent that expenses of the lottery are less than 13 percent of the total annual revenues, any surplus funds also shall be allocated to the benefit of public education, as specified in this section or in Section 8880.5.(B) From the amount allocated pursuant to subparagraph (A), ____percent shall be allocated to the Office of Problem Gambling, as established pursuant to Section 4369 of the Welfare and Institutions Code, for the purpose of supporting the gambling disorder prevention and treatment programs described in Section 4369.2 of the Welfare and Institutions Code.(b) Funds allocated for the benefit of public education pursuant to subdivision (a) are in addition to other funds appropriated or required under existing constitutional reservations for educational purposes. No program shall have the amount appropriated to support that program reduced as a result of funds allocated pursuant to subdivision (a). Funds allocated for the benefit of public education pursuant to subdivision (a) shall not supplant funds committed for child development programs.(c) None of the following shall be considered revenues for the purposes of this section:(1) Revenues recorded as a result of a nonmonetary exchange. Nonmonetary exchange means a reciprocal transfer, in compliance with generally accepted accounting principles, between the lottery and another entity that results in the lottery acquiring assets or services and the lottery providing assets or services.(2) Reimbursements received by the lottery for the cost of goods or services provided by the lottery that are less than or equal to the cost of the same goods or services provided by the lottery.(d) Reimbursements received in excess of the cost of the same goods and services provided by the lottery, as specified in paragraph (2) of subdivision (c), are not a part of the total annual revenues required to be allocated for the benefit of public education, as specified in paragraph (2) of subdivision (a). However, this amount shall be allocated for the benefit of public education as specified in Section 8880.5.(e) This section shall become inoperative on April 1 of the year following notification from the Controller to the Legislature and the Governor that the events described in paragraphs (1) and (2) of subdivision (c) of Section 8880.4.5 have occurred, and as of the following January 1 is repealed, unless a later enacted statute, that is enacted before January 1 of that following year, deletes or extends the dates on which it becomes inoperative and is repealed. |
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| 57 | 57 | | |
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| 58 | 58 | | 8880.4. Revenues of the state lottery shall be allocated so as to maximize the amount of funding allocated to public education, including from the first full fiscal year following enactment of the act adding Section 8880.4.5, as follows:(a) Not less than 87 percent 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.(1) The commission shall determine the percentage of total annual revenues that shall be returned to the public in the form of prizes as described in this chapter, however the percentage shall not be less than 50 percent of the total revenues.(2) (A) The percentage of the total annual revenues to be allocated to the benefit of public education, as specified in Section 8880.5, shall be established by the commission at a level that maximizes the total net revenues allocated to the benefit of public education.(B) However, for the 199899 fiscal year and each fiscal year thereafter, 50 percent of any increase in the amount calculated pursuant to this paragraph from the amount calculated in the 199798 fiscal year shall be allocated to school districts and community college districts for the purchase of instructional materials, on the basis of an equal amount per unit of average daily attendance, as defined by law, and through a fair and equitable distribution system across grade levels.(3) All unclaimed prize money shall revert to the benefit of public education, as provided for in subdivision (e) of Section 8880.32.(4) All of the interest earned upon funds held in the State Lottery Fund shall be allocated to the benefit of public education, as specified in Section 8880.5. This interest is in addition to, and shall not be considered as any part of, the total annual revenues that are required to be allocated for the benefit of public education as specified in paragraph (2).(5) (A) No more than 13 percent of the total annual revenues shall be allocated for payment of expenses of the lottery as described in this chapter. To the extent that expenses of the lottery are less than 13 percent of the total annual revenues, any surplus funds also shall be allocated to the benefit of public education, as specified in this section or in Section 8880.5.(B) From the amount allocated pursuant to subparagraph (A), ____percent shall be allocated to the Office of Problem Gambling, as established pursuant to Section 4369 of the Welfare and Institutions Code, for the purpose of supporting the gambling disorder prevention and treatment programs described in Section 4369.2 of the Welfare and Institutions Code.(b) Funds allocated for the benefit of public education pursuant to subdivision (a) are in addition to other funds appropriated or required under existing constitutional reservations for educational purposes. No program shall have the amount appropriated to support that program reduced as a result of funds allocated pursuant to subdivision (a). Funds allocated for the benefit of public education pursuant to subdivision (a) shall not supplant funds committed for child development programs.(c) None of the following shall be considered revenues for the purposes of this section:(1) Revenues recorded as a result of a nonmonetary exchange. Nonmonetary exchange means a reciprocal transfer, in compliance with generally accepted accounting principles, between the lottery and another entity that results in the lottery acquiring assets or services and the lottery providing assets or services.(2) Reimbursements received by the lottery for the cost of goods or services provided by the lottery that are less than or equal to the cost of the same goods or services provided by the lottery.(d) Reimbursements received in excess of the cost of the same goods and services provided by the lottery, as specified in paragraph (2) of subdivision (c), are not a part of the total annual revenues required to be allocated for the benefit of public education, as specified in paragraph (2) of subdivision (a). However, this amount shall be allocated for the benefit of public education as specified in Section 8880.5.(e) This section shall become inoperative on April 1 of the year following notification from the Controller to the Legislature and the Governor that the events described in paragraphs (1) and (2) of subdivision (c) of Section 8880.4.5 have occurred, and as of the following January 1 is repealed, unless a later enacted statute, that is enacted before January 1 of that following year, deletes or extends the dates on which it becomes inoperative and is repealed. |
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| 59 | 59 | | |
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| 60 | 60 | | |
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| 61 | 61 | | |
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| 62 | 62 | | 8880.4. Revenues of the state lottery shall be allocated so as to maximize the amount of funding allocated to public education, including from the first full fiscal year following enactment of the act adding Section 8880.4.5, as follows: |
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| 63 | 63 | | |
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| 64 | 64 | | (a) Not less than 87 percent 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. |
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| 65 | 65 | | |
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| 66 | 66 | | (1) The commission shall determine the percentage of total annual revenues that shall be returned to the public in the form of prizes as described in this chapter, however the percentage shall not be less than 50 percent of the total revenues. |
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| 67 | 67 | | |
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| 68 | 68 | | (2) (A) The percentage of the total annual revenues to be allocated to the benefit of public education, as specified in Section 8880.5, shall be established by the commission at a level that maximizes the total net revenues allocated to the benefit of public education. |
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| 69 | 69 | | |
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| 70 | 70 | | (B) However, for the 199899 fiscal year and each fiscal year thereafter, 50 percent of any increase in the amount calculated pursuant to this paragraph from the amount calculated in the 199798 fiscal year shall be allocated to school districts and community college districts for the purchase of instructional materials, on the basis of an equal amount per unit of average daily attendance, as defined by law, and through a fair and equitable distribution system across grade levels. |
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| 71 | 71 | | |
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| 72 | 72 | | (3) All unclaimed prize money shall revert to the benefit of public education, as provided for in subdivision (e) of Section 8880.32. |
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| 73 | 73 | | |
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| 74 | 74 | | (4) All of the interest earned upon funds held in the State Lottery Fund shall be allocated to the benefit of public education, as specified in Section 8880.5. This interest is in addition to, and shall not be considered as any part of, the total annual revenues that are required to be allocated for the benefit of public education as specified in paragraph (2). |
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| 75 | 75 | | |
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| 76 | 76 | | (5) (A) No more than 13 percent of the total annual revenues shall be allocated for payment of expenses of the lottery as described in this chapter. To the extent that expenses of the lottery are less than 13 percent of the total annual revenues, any surplus funds also shall be allocated to the benefit of public education, as specified in this section or in Section 8880.5. |
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| 77 | 77 | | |
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| 78 | 78 | | (B) From the amount allocated pursuant to subparagraph (A), ____percent shall be allocated to the Office of Problem Gambling, as established pursuant to Section 4369 of the Welfare and Institutions Code, for the purpose of supporting the gambling disorder prevention and treatment programs described in Section 4369.2 of the Welfare and Institutions Code. |
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| 79 | 79 | | |
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| 80 | 80 | | (b) Funds allocated for the benefit of public education pursuant to subdivision (a) are in addition to other funds appropriated or required under existing constitutional reservations for educational purposes. No program shall have the amount appropriated to support that program reduced as a result of funds allocated pursuant to subdivision (a). Funds allocated for the benefit of public education pursuant to subdivision (a) shall not supplant funds committed for child development programs. |
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| 81 | 81 | | |
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| 82 | 82 | | (c) None of the following shall be considered revenues for the purposes of this section: |
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| 83 | 83 | | |
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| 84 | 84 | | (1) Revenues recorded as a result of a nonmonetary exchange. Nonmonetary exchange means a reciprocal transfer, in compliance with generally accepted accounting principles, between the lottery and another entity that results in the lottery acquiring assets or services and the lottery providing assets or services. |
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| 85 | 85 | | |
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| 86 | 86 | | (2) Reimbursements received by the lottery for the cost of goods or services provided by the lottery that are less than or equal to the cost of the same goods or services provided by the lottery. |
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| 87 | 87 | | |
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| 88 | 88 | | (d) Reimbursements received in excess of the cost of the same goods and services provided by the lottery, as specified in paragraph (2) of subdivision (c), are not a part of the total annual revenues required to be allocated for the benefit of public education, as specified in paragraph (2) of subdivision (a). However, this amount shall be allocated for the benefit of public education as specified in Section 8880.5. |
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| 89 | 89 | | |
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| 90 | 90 | | (e) This section shall become inoperative on April 1 of the year following notification from the Controller to the Legislature and the Governor that the events described in paragraphs (1) and (2) of subdivision (c) of Section 8880.4.5 have occurred, and as of the following January 1 is repealed, unless a later enacted statute, that is enacted before January 1 of that following year, deletes or extends the dates on which it becomes inoperative and is repealed. |
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| 91 | 91 | | |
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| 92 | 92 | | SEC. 2. Section 8880.4 of the Government Code, as amended by Section 2 of Chapter 56 of the Statutes of 2011, is amended to read:8880.4. Revenues of the state lottery shall be allocated as follows:(a) Not less than 84 percent 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.(1) Fifty percent of the total annual revenues shall be returned to the public in the form of prizes as described in this chapter.(2) At least 34 percent of the total annual revenues shall be allocated to the benefit of public education, as specified in Section 8880.5. However, for the 199899 fiscal year and each fiscal year thereafter, 50 percent of any increase in the amount calculated pursuant to this paragraph from the amount calculated in the 199798 fiscal year shall be allocated to school districts and community college districts for the purchase of instructional materials, on the basis of an equal amount per unit of average daily attendance, as defined by law, and through a fair and equitable distribution system across grade levels.(3) All unclaimed prize money shall revert to the benefit of public education, as provided for in subdivision (e) of Section 8880.32.(4) All of the interest earned upon funds held in the State Lottery Fund shall be allocated to the benefit of public education, as specified in Section 8880.5. This interest is in addition to, and shall not be considered as any part of, the 34 percent of the total annual revenues that is required to be allocated for the benefit of public education as specified in paragraph (2).(5) (A) No more than 16 percent of the total annual revenues shall be allocated for payment of expenses of the lottery as described in this chapter. To the extent that expenses of the lottery are less than 16 percent of the total annual revenues, any surplus funds also shall be allocated to the benefit of public education, as specified in this section or in Section 8880.5.(B) From the amount allocated pursuant to subparagraph (A), ____percent shall be allocated to the Office of Problem Gambling, as established pursuant to Section 4369 of the Welfare and Institutions Code, for the purpose of supporting the gambling disorder prevention and treatment programs described in Section 4369.2 of the Welfare and Institutions Code.(b) Funds allocated for the benefit of public education pursuant to subdivision (a) are in addition to other funds appropriated or required under existing constitutional reservations for educational purposes. No program shall have the amount appropriated to support that program reduced as a result of funds allocated pursuant to subdivision (a). Funds allocated for the benefit of public education pursuant to subdivision (a) shall not supplant funds committed for child development programs.(c) None of the following shall be considered revenues for the purposes of this section:(1) Revenues recorded as a result of a nonmonetary exchange. Nonmonetary exchange means a reciprocal transfer, in compliance with generally accepted accounting principles, between the lottery and another entity that results in the lottery acquiring assets or services and the lottery providing assets or services.(2) Reimbursements received by the lottery for the cost of goods or services provided by the lottery that are less than or equal to the cost of the same goods or services provided by the lottery.(d) Reimbursements received in excess of the cost of the same goods and services provided by the lottery, as specified in paragraph (2) of subdivision (c), are not a part of the 34 percent of total annual revenues required to be allocated for the benefit of public education, as specified in paragraph (2) of subdivision (a). However, this amount shall be allocated for the benefit of public education as specified in Section 8880.5.(e) This section shall become operative on April 1 of the year following notification from the Controller to the Legislature and the Governor that the events described in paragraphs (1) and (2) of subdivision (c) of Section 8880.4.5 have occurred. |
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| 93 | 93 | | |
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| 94 | 94 | | SEC. 2. Section 8880.4 of the Government Code, as amended by Section 2 of Chapter 56 of the Statutes of 2011, is amended to read: |
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| 95 | 95 | | |
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| 96 | 96 | | ### SEC. 2. |
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| 97 | 97 | | |
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| 98 | 98 | | 8880.4. Revenues of the state lottery shall be allocated as follows:(a) Not less than 84 percent 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.(1) Fifty percent of the total annual revenues shall be returned to the public in the form of prizes as described in this chapter.(2) At least 34 percent of the total annual revenues shall be allocated to the benefit of public education, as specified in Section 8880.5. However, for the 199899 fiscal year and each fiscal year thereafter, 50 percent of any increase in the amount calculated pursuant to this paragraph from the amount calculated in the 199798 fiscal year shall be allocated to school districts and community college districts for the purchase of instructional materials, on the basis of an equal amount per unit of average daily attendance, as defined by law, and through a fair and equitable distribution system across grade levels.(3) All unclaimed prize money shall revert to the benefit of public education, as provided for in subdivision (e) of Section 8880.32.(4) All of the interest earned upon funds held in the State Lottery Fund shall be allocated to the benefit of public education, as specified in Section 8880.5. This interest is in addition to, and shall not be considered as any part of, the 34 percent of the total annual revenues that is required to be allocated for the benefit of public education as specified in paragraph (2).(5) (A) No more than 16 percent of the total annual revenues shall be allocated for payment of expenses of the lottery as described in this chapter. To the extent that expenses of the lottery are less than 16 percent of the total annual revenues, any surplus funds also shall be allocated to the benefit of public education, as specified in this section or in Section 8880.5.(B) From the amount allocated pursuant to subparagraph (A), ____percent shall be allocated to the Office of Problem Gambling, as established pursuant to Section 4369 of the Welfare and Institutions Code, for the purpose of supporting the gambling disorder prevention and treatment programs described in Section 4369.2 of the Welfare and Institutions Code.(b) Funds allocated for the benefit of public education pursuant to subdivision (a) are in addition to other funds appropriated or required under existing constitutional reservations for educational purposes. No program shall have the amount appropriated to support that program reduced as a result of funds allocated pursuant to subdivision (a). Funds allocated for the benefit of public education pursuant to subdivision (a) shall not supplant funds committed for child development programs.(c) None of the following shall be considered revenues for the purposes of this section:(1) Revenues recorded as a result of a nonmonetary exchange. Nonmonetary exchange means a reciprocal transfer, in compliance with generally accepted accounting principles, between the lottery and another entity that results in the lottery acquiring assets or services and the lottery providing assets or services.(2) Reimbursements received by the lottery for the cost of goods or services provided by the lottery that are less than or equal to the cost of the same goods or services provided by the lottery.(d) Reimbursements received in excess of the cost of the same goods and services provided by the lottery, as specified in paragraph (2) of subdivision (c), are not a part of the 34 percent of total annual revenues required to be allocated for the benefit of public education, as specified in paragraph (2) of subdivision (a). However, this amount shall be allocated for the benefit of public education as specified in Section 8880.5.(e) This section shall become operative on April 1 of the year following notification from the Controller to the Legislature and the Governor that the events described in paragraphs (1) and (2) of subdivision (c) of Section 8880.4.5 have occurred. |
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| 99 | 99 | | |
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| 100 | 100 | | 8880.4. Revenues of the state lottery shall be allocated as follows:(a) Not less than 84 percent 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.(1) Fifty percent of the total annual revenues shall be returned to the public in the form of prizes as described in this chapter.(2) At least 34 percent of the total annual revenues shall be allocated to the benefit of public education, as specified in Section 8880.5. However, for the 199899 fiscal year and each fiscal year thereafter, 50 percent of any increase in the amount calculated pursuant to this paragraph from the amount calculated in the 199798 fiscal year shall be allocated to school districts and community college districts for the purchase of instructional materials, on the basis of an equal amount per unit of average daily attendance, as defined by law, and through a fair and equitable distribution system across grade levels.(3) All unclaimed prize money shall revert to the benefit of public education, as provided for in subdivision (e) of Section 8880.32.(4) All of the interest earned upon funds held in the State Lottery Fund shall be allocated to the benefit of public education, as specified in Section 8880.5. This interest is in addition to, and shall not be considered as any part of, the 34 percent of the total annual revenues that is required to be allocated for the benefit of public education as specified in paragraph (2).(5) (A) No more than 16 percent of the total annual revenues shall be allocated for payment of expenses of the lottery as described in this chapter. To the extent that expenses of the lottery are less than 16 percent of the total annual revenues, any surplus funds also shall be allocated to the benefit of public education, as specified in this section or in Section 8880.5.(B) From the amount allocated pursuant to subparagraph (A), ____percent shall be allocated to the Office of Problem Gambling, as established pursuant to Section 4369 of the Welfare and Institutions Code, for the purpose of supporting the gambling disorder prevention and treatment programs described in Section 4369.2 of the Welfare and Institutions Code.(b) Funds allocated for the benefit of public education pursuant to subdivision (a) are in addition to other funds appropriated or required under existing constitutional reservations for educational purposes. No program shall have the amount appropriated to support that program reduced as a result of funds allocated pursuant to subdivision (a). Funds allocated for the benefit of public education pursuant to subdivision (a) shall not supplant funds committed for child development programs.(c) None of the following shall be considered revenues for the purposes of this section:(1) Revenues recorded as a result of a nonmonetary exchange. Nonmonetary exchange means a reciprocal transfer, in compliance with generally accepted accounting principles, between the lottery and another entity that results in the lottery acquiring assets or services and the lottery providing assets or services.(2) Reimbursements received by the lottery for the cost of goods or services provided by the lottery that are less than or equal to the cost of the same goods or services provided by the lottery.(d) Reimbursements received in excess of the cost of the same goods and services provided by the lottery, as specified in paragraph (2) of subdivision (c), are not a part of the 34 percent of total annual revenues required to be allocated for the benefit of public education, as specified in paragraph (2) of subdivision (a). However, this amount shall be allocated for the benefit of public education as specified in Section 8880.5.(e) This section shall become operative on April 1 of the year following notification from the Controller to the Legislature and the Governor that the events described in paragraphs (1) and (2) of subdivision (c) of Section 8880.4.5 have occurred. |
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| 101 | 101 | | |
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| 102 | 102 | | 8880.4. Revenues of the state lottery shall be allocated as follows:(a) Not less than 84 percent 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.(1) Fifty percent of the total annual revenues shall be returned to the public in the form of prizes as described in this chapter.(2) At least 34 percent of the total annual revenues shall be allocated to the benefit of public education, as specified in Section 8880.5. However, for the 199899 fiscal year and each fiscal year thereafter, 50 percent of any increase in the amount calculated pursuant to this paragraph from the amount calculated in the 199798 fiscal year shall be allocated to school districts and community college districts for the purchase of instructional materials, on the basis of an equal amount per unit of average daily attendance, as defined by law, and through a fair and equitable distribution system across grade levels.(3) All unclaimed prize money shall revert to the benefit of public education, as provided for in subdivision (e) of Section 8880.32.(4) All of the interest earned upon funds held in the State Lottery Fund shall be allocated to the benefit of public education, as specified in Section 8880.5. This interest is in addition to, and shall not be considered as any part of, the 34 percent of the total annual revenues that is required to be allocated for the benefit of public education as specified in paragraph (2).(5) (A) No more than 16 percent of the total annual revenues shall be allocated for payment of expenses of the lottery as described in this chapter. To the extent that expenses of the lottery are less than 16 percent of the total annual revenues, any surplus funds also shall be allocated to the benefit of public education, as specified in this section or in Section 8880.5.(B) From the amount allocated pursuant to subparagraph (A), ____percent shall be allocated to the Office of Problem Gambling, as established pursuant to Section 4369 of the Welfare and Institutions Code, for the purpose of supporting the gambling disorder prevention and treatment programs described in Section 4369.2 of the Welfare and Institutions Code.(b) Funds allocated for the benefit of public education pursuant to subdivision (a) are in addition to other funds appropriated or required under existing constitutional reservations for educational purposes. No program shall have the amount appropriated to support that program reduced as a result of funds allocated pursuant to subdivision (a). Funds allocated for the benefit of public education pursuant to subdivision (a) shall not supplant funds committed for child development programs.(c) None of the following shall be considered revenues for the purposes of this section:(1) Revenues recorded as a result of a nonmonetary exchange. Nonmonetary exchange means a reciprocal transfer, in compliance with generally accepted accounting principles, between the lottery and another entity that results in the lottery acquiring assets or services and the lottery providing assets or services.(2) Reimbursements received by the lottery for the cost of goods or services provided by the lottery that are less than or equal to the cost of the same goods or services provided by the lottery.(d) Reimbursements received in excess of the cost of the same goods and services provided by the lottery, as specified in paragraph (2) of subdivision (c), are not a part of the 34 percent of total annual revenues required to be allocated for the benefit of public education, as specified in paragraph (2) of subdivision (a). However, this amount shall be allocated for the benefit of public education as specified in Section 8880.5.(e) This section shall become operative on April 1 of the year following notification from the Controller to the Legislature and the Governor that the events described in paragraphs (1) and (2) of subdivision (c) of Section 8880.4.5 have occurred. |
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| 103 | 103 | | |
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| 104 | 104 | | |
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| 105 | 105 | | |
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| 106 | 106 | | 8880.4. Revenues of the state lottery shall be allocated as follows: |
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| 107 | 107 | | |
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| 108 | 108 | | (a) Not less than 84 percent 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. |
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| 109 | 109 | | |
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| 110 | 110 | | (1) Fifty percent of the total annual revenues shall be returned to the public in the form of prizes as described in this chapter. |
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| 111 | 111 | | |
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| 112 | 112 | | (2) At least 34 percent of the total annual revenues shall be allocated to the benefit of public education, as specified in Section 8880.5. However, for the 199899 fiscal year and each fiscal year thereafter, 50 percent of any increase in the amount calculated pursuant to this paragraph from the amount calculated in the 199798 fiscal year shall be allocated to school districts and community college districts for the purchase of instructional materials, on the basis of an equal amount per unit of average daily attendance, as defined by law, and through a fair and equitable distribution system across grade levels. |
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| 113 | 113 | | |
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| 114 | 114 | | (3) All unclaimed prize money shall revert to the benefit of public education, as provided for in subdivision (e) of Section 8880.32. |
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| 115 | 115 | | |
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| 116 | 116 | | (4) All of the interest earned upon funds held in the State Lottery Fund shall be allocated to the benefit of public education, as specified in Section 8880.5. This interest is in addition to, and shall not be considered as any part of, the 34 percent of the total annual revenues that is required to be allocated for the benefit of public education as specified in paragraph (2). |
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| 117 | 117 | | |
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| 118 | 118 | | (5) (A) No more than 16 percent of the total annual revenues shall be allocated for payment of expenses of the lottery as described in this chapter. To the extent that expenses of the lottery are less than 16 percent of the total annual revenues, any surplus funds also shall be allocated to the benefit of public education, as specified in this section or in Section 8880.5. |
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| 119 | 119 | | |
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| 120 | 120 | | (B) From the amount allocated pursuant to subparagraph (A), ____percent shall be allocated to the Office of Problem Gambling, as established pursuant to Section 4369 of the Welfare and Institutions Code, for the purpose of supporting the gambling disorder prevention and treatment programs described in Section 4369.2 of the Welfare and Institutions Code. |
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| 121 | 121 | | |
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| 122 | 122 | | (b) Funds allocated for the benefit of public education pursuant to subdivision (a) are in addition to other funds appropriated or required under existing constitutional reservations for educational purposes. No program shall have the amount appropriated to support that program reduced as a result of funds allocated pursuant to subdivision (a). Funds allocated for the benefit of public education pursuant to subdivision (a) shall not supplant funds committed for child development programs. |
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| 123 | 123 | | |
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| 124 | 124 | | (c) None of the following shall be considered revenues for the purposes of this section: |
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| 125 | 125 | | |
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| 126 | 126 | | (1) Revenues recorded as a result of a nonmonetary exchange. Nonmonetary exchange means a reciprocal transfer, in compliance with generally accepted accounting principles, between the lottery and another entity that results in the lottery acquiring assets or services and the lottery providing assets or services. |
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| 127 | 127 | | |
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| 128 | 128 | | (2) Reimbursements received by the lottery for the cost of goods or services provided by the lottery that are less than or equal to the cost of the same goods or services provided by the lottery. |
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| 129 | 129 | | |
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| 130 | 130 | | (d) Reimbursements received in excess of the cost of the same goods and services provided by the lottery, as specified in paragraph (2) of subdivision (c), are not a part of the 34 percent of total annual revenues required to be allocated for the benefit of public education, as specified in paragraph (2) of subdivision (a). However, this amount shall be allocated for the benefit of public education as specified in Section 8880.5. |
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| 131 | 131 | | |
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| 132 | 132 | | (e) This section shall become operative on April 1 of the year following notification from the Controller to the Legislature and the Governor that the events described in paragraphs (1) and (2) of subdivision (c) of Section 8880.4.5 have occurred. |
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| 133 | 133 | | |
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| 134 | 134 | | SEC. 3. The Legislature finds and declares that this act furthers the purpose of the California State Lottery Act of 1984, enacted by Proposition 37 at the November 6, 1984, general election. |
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| 135 | 135 | | |
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| 136 | 136 | | SEC. 3. The Legislature finds and declares that this act furthers the purpose of the California State Lottery Act of 1984, enacted by Proposition 37 at the November 6, 1984, general election. |
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| 137 | 137 | | |
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| 138 | 138 | | SEC. 3. The Legislature finds and declares that this act furthers the purpose of the California State Lottery Act of 1984, enacted by Proposition 37 at the November 6, 1984, general election. |
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| 139 | 139 | | |
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| 140 | 140 | | ### SEC. 3. |
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