California State Lottery: revenue allocation.

(1) The California State Lottery Act of 1984, an initiative measure approved by the voters at the November 6, 1984, statewide general election, 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 establishes the State Lottery Fund as a continuously appropriated fund for carrying out the purposes of the act. Existing law requires that not less than 87% of the total annual revenues of the state lottery be returned to the public in the form of prizes and net revenues to benefit public education, as specified, and that no more than 13% be used for lottery expenses. Existing law, to become operative following notification from the Controller to the Legislature and the Governor that certain events have occurred, as specified, changes the revenue allocation formula so that not less than 84% of the total annual revenues of the state lottery be returned to the public in the form of prizes and net revenues to benefit public education, as specified, and that no more than 16% be used for lottery expenses. Existing law requires, with respect to a specified percentage of total annual lottery revenues to be allocated for public education, that 50% of any increase over an amount calculated in the 1997–98 fiscal year be allocated to school districts and community college districts for the purchase of instructional materials. This bill would make legislative findings and declarations relating to the allocation of lottery funds to community colleges. The bill would express the intent of the Legislature to ensure that restricted lottery funding allocated to community colleges is spent in full for the benefit of students. This bill would additionally authorize the allocation of this amount for housing assistance and food assistance for community college students. By authorizing this allocation, the bill would change the purposes for which the funds of a continuously appropriated fund may be appropriated, and thereby make an appropriation. (2) The California State Lottery Act of 1984 provides that its provisions may not 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 its provisions further the purposes of the act. (3) This bill would declare that it is to take effect immediately as an urgency statute.