California State Lottery.

(1) The California State Lottery Act, subject to the approval by the voters, appropriates moneys, commencing with the 2009–10 fiscal year, on an annual basis from the General Fund to various educational entities based on specified factors. The act provides that specified provisions regarding General Fund appropriations may only be amended by a vote of the people. This bill would, commencing with the 2010–11 fiscal year, adjust the method of annually calculating specified appropriations. Existing law allows the director of the lottery to purchase or lease goods and services as are necessary for effectuating the purposes of the provisions governing the lottery. This bill would instead provide that the director has express authority, subject only to commission approval, to make any and all expenditures as are necessary or reasonable for effectuating the purposes of those provisions. The bill would require that, with regard to employee incentives, the Director shall exercise his or her authority consistent with laws relating to state employer-employee relations. Existing law requires the director, in all procurement decisions, to award contracts to the responsible supplier submitting the lowest and best proposal that maximizes the benefits to the state in relation to the areas of security, competence, experience, and timely performance. This bill would delete the requirement that the director award contracts to the responsible supplier submitting the lowest proposal. Existing law requires the commission to adopt and publish competitive bidding procedures for the award of any procurement or contract involving an expenditure of more than $100,000. This bill would instead require the commission to adopt and publish those procedures for any procurement or contract involving an expenditure of more than $500,000. The bill would declare that these provisions would become effective only when submitted to and approved by the voters. (2) Existing law requires the director to engage an independent firm of certified public accountants, as specified, and requires the Controller to conduct certain audits of the Lottery. The bill would recodify those provisions of the act regarding audits and would require specified audits and postaudits to be posted on the Internet. The bill would declare that these provisions further the purposes of the act. (3) 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 December 19, 2008. This bill would state that it addresses the fiscal emergency declared by the Governor by proclamation issued on December 19, 2008, pursuant to the California Constitution. (4) This bill would declare that it is to take effect immediately as an urgency statute.