State Codes and Statutes

Statutes > California > Gov > 8880-8880.14

GOVERNMENT CODE
SECTION 8880-8880.14



8880.  Citation of Chapter
   This Chapter shall be known and may be cited as the California
State Lottery Act of 1984.



8880.1.  Purpose and Intent
   The People of the State of California declare that the purpose of
this Act is support for preservation of the rights, liberties and
welfare of the people by providing additional monies to benefit
education without the imposition of additional or increased taxes.
   The People of the State of California further declare that it is
their intent that the net revenues of the California State Lottery
shall not be used as substitute funds but rather shall supplement the
total amount of money allocated for public education in California.




8880.2.  Activities Not Affected
   Except for the state-operated lottery established by this Chapter,
nothing in this Chapter shall be construed to repeal or modify
existing State law with respect to the prohibition of casino
gambling, punch boards, slot machines, dog racing, video poker or
blackjack machines paying prizes, or any other forms of gambling.



8880.3.  Prohibition on Use of State Funds
   No appropriations, loans, or other transfer of State funds shall
be made to the California State Lottery Commission except for a
temporary line of credit for initial start-up costs as provided in
this Act.



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 1998-99 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 1997-98
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) 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) 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 remain in effect only until December 31 of
the year of 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 that
date is repealed, unless a later enacted statute, that is enacted
before December 31 of that year, deletes or extends that date.



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 1998-99 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 1997-98
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) 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) 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 January 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.



8880.4.5.  (a) Following the end of each full fiscal year, the
commission shall calculate and report to the Controller and to the
Legislature the amount of total net revenues allocated to the benefit
of public education from the California State Lottery Education Fund
for that fiscal year.
   (b) To ensure increases in lottery net revenues allocated to
public education, if in any one of the first five full fiscal years
after the enactment of the act adding this section, the Controller
determines that both of the events described in paragraphs (1) and
(2) of subdivision (c) occur, then the Controller shall notify the
Legislature and the Governor, and post that notification on the
Controller's Internet Web site, and on January 1 of the following
year, both of the following shall occur:
   (1) The amendments made to Sections 8880.4, 8880.63, and 8880.64
by the act adding this section shall become inoperative.
   (2) Sections 8880.4, 8880.63, and 8880.64, as they existed prior
to the effective date of the act adding this section shall become
operative.
   (c) No later than September 1 following each of the first five
fiscal years in which the amendments made by the act adding this
section are in effect, the Controller shall report to the Legislature
whether either of the following occurred in the prior fiscal year:
   (1) The total net revenues allocated to the benefit of public
education from the California State Lottery Education Fund are less
than the total net revenues allocated to the benefit of public
education in the last full fiscal year prior to the enactment of the
act adding this section.
   (2) The annual average of total net revenues allocated to the
benefit of public education from the California State Lottery
Education Fund after the enactment of the act adding this section is
less than the total net revenues allocated to the benefit of public
education in the last full fiscal year prior to the enactment of the
act adding this section, adjusted for an annual growth rate of 1.8
percent or the actual growth rate of lottery revenues since enactment
of the act adding this section, whichever is greater.
   (d) If the conditions specified in subdivision (c) do not occur,
then in subsequent fiscal years, to ensure continued growth in
lottery net revenues allocated to public education, the commission,
when setting the percentage required in subparagraph (A) of paragraph
(2) of subdivision (a) of Section 8880.4, shall ensure that net
revenues allocated to public schools are at least as much as were
allocated on average in the prior five fiscal years, and increased in
proportion to any upward increases in lottery net revenues.
   (e) At the end of the first five full fiscal years following
enactment of the act adding this section, the Controller shall
convene a lottery review group to consist of the Controller, the
Superintendent of Public Instruction, and the chairperson of the
commission. The review group shall report to the Legislature, no
later than December 31 following the final fiscal year, on whether
the amendments made by the act adding this section have furthered the
purposes of the California State Lottery Act of 1984 as intended.
   (f) This section shall remain in effect only until December 31 of
the year of notification from the Controller to the Legislature and
the Governor that the events described in paragraphs (1) and (2) of
subdivision (c) have occurred, and as of that date is repealed,
unless a later enacted statute, that is enacted before December 31 of
that year, deletes or extends that date.



8880.5.  Allocations for education:
   The California State Lottery Education Fund is created within the
State Treasury, and is continuously appropriated for carrying out the
purposes of this chapter. The Controller shall draw warrants on this
fund and distribute them quarterly in the following manner, provided
that the payments specified in subdivisions (a) to (g), inclusive,
shall be equal per capita amounts.
   (a) (1) Payments shall be made directly to public school
districts, including county superintendents of schools, serving
kindergarten and grades 1 to 12, inclusive, or any part thereof, on
the basis of an equal amount for each unit of average daily
attendance, as defined by law and adjusted pursuant to subdivision
(l).
   (2) For purposes of this paragraph, in each of the 2008-09,
2009-10, 2010-11, 2011-12, and 2012-13 fiscal years, the number of
units of average daily attendance in each of those fiscal years for
programs for public school districts, including county
superintendents of schools, serving kindergarten and grades 1 to 12,
inclusive, shall include the same amount of average daily attendance
for classes for adults and regional occupational centers and programs
used in the calculation made pursuant to this subdivision for the
2007-08 fiscal year.
   (b) Payments shall also be made directly to public school
districts serving community colleges, on the basis of an equal amount
for each unit of average daily attendance, as defined by law.
   (c) Payments shall also be made directly to the Board of Trustees
of the California State University on the basis of an amount for each
unit of equivalent full-time enrollment. Funds received by the
trustees shall be deposited in and expended from the California State
University Lottery Education Fund, which is hereby created or, at
the discretion of the trustees, deposited in local trust accounts in
accordance with subdivision (j) of Section 89721 of the Education
Code.
   (d) Payments shall also be made directly to the Regents of the
University of California on the basis of an amount for each unit of
equivalent full-time enrollment.
   (e) Payments shall also be made directly to the Board of Directors
of the Hastings College of the Law on the basis of an amount for
each unit of equivalent full-time enrollment.
   (f) Payments shall also be made directly to the Department of the
Youth Authority for educational programs serving kindergarten and
grades 1 to 12, inclusive, or any part thereof, on the basis of an
equal amount for each unit of average daily attendance, as defined by
law.
   (g) Payments shall also be made directly to the two California
Schools for the Deaf, the California School for the Blind, and the
three Diagnostic Schools for Neurologically Handicapped Children, on
the basis of an amount for each unit of equivalent full-time
enrollment.
   (h) Payments shall also be made directly to the State Department
of Developmental Services and the State Department of Mental Health
for clients with developmental or mental disabilities who are
enrolled in state hospital education programs, including
developmental centers, on the basis of an equal amount for each unit
of average daily attendance, as defined by law.
   (i) No Budget Act or other statutory provision shall direct that
payments for public education made pursuant to this chapter be used
for purposes and programs (including workload adjustments and
maintenance of the level of service) authorized by Chapters 498, 565,
and 1302 of the Statutes of 1983, Chapter 97 or 258 of the Statutes
of 1984, or Chapter 1 of the Statutes of the 1983-84 Second
Extraordinary Session.
   (j) School districts and other agencies receiving funds
distributed pursuant to this chapter may at their option utilize
funds allocated by this chapter to provide additional funds for those
purposes and programs prescribed by subdivision (i) for the purpose
of enrichment or expansion.
   (k) As a condition of receiving any moneys pursuant to subdivision
(a) or (b), each district and county superintendent of schools shall
establish a separate account for the receipt and expenditure of
those moneys, which account shall be clearly identified as a lottery
education account.
   (l) Commencing with the 1998-99 fiscal year, and each year
thereafter, for the purposes of subdivision (a), average daily
attendance shall be increased by the statewide average rate of
excused absences for the 1996-97 fiscal year as determined pursuant
to the provisions of Chapter 855 of the Statutes of 1997. The
statewide average excused absence rate, and the corresponding
adjustment factor required for the operation of this subdivision,
shall be certified to the State Controller by the Superintendent of
Public Instruction.
   (m) It is the intent of this chapter that all funds allocated from
the California State Lottery Education Fund shall be used
exclusively for the education of pupils and students and no funds
shall be spent for acquisition of real property, construction of
facilities, financing of research, or any other noninstructional
purpose.


8880.6.  Other Statutory Provisions
   Sections 320, 321, 322, 323, 324, 325, 326, and 328 of the Penal
Code do not apply to the California State Lottery or its operations.
This exemption applies only to the operators of the Lottery and shall
not be construed to change existing law relating to lotteries
operated by persons or entities other than the Lottery.



8880.7.  Governing Definitions
   The definitions contained in this Chapter shall govern the
construction of this Chapter unless the context requires otherwise.




8880.8.  "Lottery" or "California State Lottery"
   "Lottery" or "California State Lottery" means the California State
Lottery created and operated pursuant to this Chapter.




8880.9.  "Commissioner"
   "Commissioner" means one of the members of the Lottery Commission
appointed by the Governor pursuant to this Chapter to oversee the
California State Lottery.



8880.10.  "Director"
   "Director" means the Director of the California State Lottery
appointed by the Governor pursuant to this Chapter as the chief
administrator of the California State Lottery.



8880.11.  "Lottery Commission" or "Commission"
   "Lottery Commission" or "Commission" means the five members
appointed by the Governor pursuant to this Chapter to oversee the
Lottery and the Director.



8880.12.  "Lottery Game"
   "Lottery Game" means any procedure authorized by the commission
whereby prizes are distributed among persons who have paid, or who
have unconditionally agreed to pay, for tickets or shares which
provide the opportunity to win those prizes.



8880.13.  "Lottery Game Retailer"
   "Lottery Game Retailer" means a person or organization with whom
the Lottery Commission may contract for the purpose of selling
tickets or shares in Lottery Games to the public.



8880.14.  "Lottery Contractor"
   "Lottery Contractor" means a person or organization with whom the
Lottery has contracted for the purpose of providing goods and
services required by the Lottery.


State Codes and Statutes

Statutes > California > Gov > 8880-8880.14

GOVERNMENT CODE
SECTION 8880-8880.14



8880.  Citation of Chapter
   This Chapter shall be known and may be cited as the California
State Lottery Act of 1984.



8880.1.  Purpose and Intent
   The People of the State of California declare that the purpose of
this Act is support for preservation of the rights, liberties and
welfare of the people by providing additional monies to benefit
education without the imposition of additional or increased taxes.
   The People of the State of California further declare that it is
their intent that the net revenues of the California State Lottery
shall not be used as substitute funds but rather shall supplement the
total amount of money allocated for public education in California.




8880.2.  Activities Not Affected
   Except for the state-operated lottery established by this Chapter,
nothing in this Chapter shall be construed to repeal or modify
existing State law with respect to the prohibition of casino
gambling, punch boards, slot machines, dog racing, video poker or
blackjack machines paying prizes, or any other forms of gambling.



8880.3.  Prohibition on Use of State Funds
   No appropriations, loans, or other transfer of State funds shall
be made to the California State Lottery Commission except for a
temporary line of credit for initial start-up costs as provided in
this Act.



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 1998-99 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 1997-98
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) 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) 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 remain in effect only until December 31 of
the year of 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 that
date is repealed, unless a later enacted statute, that is enacted
before December 31 of that year, deletes or extends that date.



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 1998-99 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 1997-98
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) 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) 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 January 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.



8880.4.5.  (a) Following the end of each full fiscal year, the
commission shall calculate and report to the Controller and to the
Legislature the amount of total net revenues allocated to the benefit
of public education from the California State Lottery Education Fund
for that fiscal year.
   (b) To ensure increases in lottery net revenues allocated to
public education, if in any one of the first five full fiscal years
after the enactment of the act adding this section, the Controller
determines that both of the events described in paragraphs (1) and
(2) of subdivision (c) occur, then the Controller shall notify the
Legislature and the Governor, and post that notification on the
Controller's Internet Web site, and on January 1 of the following
year, both of the following shall occur:
   (1) The amendments made to Sections 8880.4, 8880.63, and 8880.64
by the act adding this section shall become inoperative.
   (2) Sections 8880.4, 8880.63, and 8880.64, as they existed prior
to the effective date of the act adding this section shall become
operative.
   (c) No later than September 1 following each of the first five
fiscal years in which the amendments made by the act adding this
section are in effect, the Controller shall report to the Legislature
whether either of the following occurred in the prior fiscal year:
   (1) The total net revenues allocated to the benefit of public
education from the California State Lottery Education Fund are less
than the total net revenues allocated to the benefit of public
education in the last full fiscal year prior to the enactment of the
act adding this section.
   (2) The annual average of total net revenues allocated to the
benefit of public education from the California State Lottery
Education Fund after the enactment of the act adding this section is
less than the total net revenues allocated to the benefit of public
education in the last full fiscal year prior to the enactment of the
act adding this section, adjusted for an annual growth rate of 1.8
percent or the actual growth rate of lottery revenues since enactment
of the act adding this section, whichever is greater.
   (d) If the conditions specified in subdivision (c) do not occur,
then in subsequent fiscal years, to ensure continued growth in
lottery net revenues allocated to public education, the commission,
when setting the percentage required in subparagraph (A) of paragraph
(2) of subdivision (a) of Section 8880.4, shall ensure that net
revenues allocated to public schools are at least as much as were
allocated on average in the prior five fiscal years, and increased in
proportion to any upward increases in lottery net revenues.
   (e) At the end of the first five full fiscal years following
enactment of the act adding this section, the Controller shall
convene a lottery review group to consist of the Controller, the
Superintendent of Public Instruction, and the chairperson of the
commission. The review group shall report to the Legislature, no
later than December 31 following the final fiscal year, on whether
the amendments made by the act adding this section have furthered the
purposes of the California State Lottery Act of 1984 as intended.
   (f) This section shall remain in effect only until December 31 of
the year of notification from the Controller to the Legislature and
the Governor that the events described in paragraphs (1) and (2) of
subdivision (c) have occurred, and as of that date is repealed,
unless a later enacted statute, that is enacted before December 31 of
that year, deletes or extends that date.



8880.5.  Allocations for education:
   The California State Lottery Education Fund is created within the
State Treasury, and is continuously appropriated for carrying out the
purposes of this chapter. The Controller shall draw warrants on this
fund and distribute them quarterly in the following manner, provided
that the payments specified in subdivisions (a) to (g), inclusive,
shall be equal per capita amounts.
   (a) (1) Payments shall be made directly to public school
districts, including county superintendents of schools, serving
kindergarten and grades 1 to 12, inclusive, or any part thereof, on
the basis of an equal amount for each unit of average daily
attendance, as defined by law and adjusted pursuant to subdivision
(l).
   (2) For purposes of this paragraph, in each of the 2008-09,
2009-10, 2010-11, 2011-12, and 2012-13 fiscal years, the number of
units of average daily attendance in each of those fiscal years for
programs for public school districts, including county
superintendents of schools, serving kindergarten and grades 1 to 12,
inclusive, shall include the same amount of average daily attendance
for classes for adults and regional occupational centers and programs
used in the calculation made pursuant to this subdivision for the
2007-08 fiscal year.
   (b) Payments shall also be made directly to public school
districts serving community colleges, on the basis of an equal amount
for each unit of average daily attendance, as defined by law.
   (c) Payments shall also be made directly to the Board of Trustees
of the California State University on the basis of an amount for each
unit of equivalent full-time enrollment. Funds received by the
trustees shall be deposited in and expended from the California State
University Lottery Education Fund, which is hereby created or, at
the discretion of the trustees, deposited in local trust accounts in
accordance with subdivision (j) of Section 89721 of the Education
Code.
   (d) Payments shall also be made directly to the Regents of the
University of California on the basis of an amount for each unit of
equivalent full-time enrollment.
   (e) Payments shall also be made directly to the Board of Directors
of the Hastings College of the Law on the basis of an amount for
each unit of equivalent full-time enrollment.
   (f) Payments shall also be made directly to the Department of the
Youth Authority for educational programs serving kindergarten and
grades 1 to 12, inclusive, or any part thereof, on the basis of an
equal amount for each unit of average daily attendance, as defined by
law.
   (g) Payments shall also be made directly to the two California
Schools for the Deaf, the California School for the Blind, and the
three Diagnostic Schools for Neurologically Handicapped Children, on
the basis of an amount for each unit of equivalent full-time
enrollment.
   (h) Payments shall also be made directly to the State Department
of Developmental Services and the State Department of Mental Health
for clients with developmental or mental disabilities who are
enrolled in state hospital education programs, including
developmental centers, on the basis of an equal amount for each unit
of average daily attendance, as defined by law.
   (i) No Budget Act or other statutory provision shall direct that
payments for public education made pursuant to this chapter be used
for purposes and programs (including workload adjustments and
maintenance of the level of service) authorized by Chapters 498, 565,
and 1302 of the Statutes of 1983, Chapter 97 or 258 of the Statutes
of 1984, or Chapter 1 of the Statutes of the 1983-84 Second
Extraordinary Session.
   (j) School districts and other agencies receiving funds
distributed pursuant to this chapter may at their option utilize
funds allocated by this chapter to provide additional funds for those
purposes and programs prescribed by subdivision (i) for the purpose
of enrichment or expansion.
   (k) As a condition of receiving any moneys pursuant to subdivision
(a) or (b), each district and county superintendent of schools shall
establish a separate account for the receipt and expenditure of
those moneys, which account shall be clearly identified as a lottery
education account.
   (l) Commencing with the 1998-99 fiscal year, and each year
thereafter, for the purposes of subdivision (a), average daily
attendance shall be increased by the statewide average rate of
excused absences for the 1996-97 fiscal year as determined pursuant
to the provisions of Chapter 855 of the Statutes of 1997. The
statewide average excused absence rate, and the corresponding
adjustment factor required for the operation of this subdivision,
shall be certified to the State Controller by the Superintendent of
Public Instruction.
   (m) It is the intent of this chapter that all funds allocated from
the California State Lottery Education Fund shall be used
exclusively for the education of pupils and students and no funds
shall be spent for acquisition of real property, construction of
facilities, financing of research, or any other noninstructional
purpose.


8880.6.  Other Statutory Provisions
   Sections 320, 321, 322, 323, 324, 325, 326, and 328 of the Penal
Code do not apply to the California State Lottery or its operations.
This exemption applies only to the operators of the Lottery and shall
not be construed to change existing law relating to lotteries
operated by persons or entities other than the Lottery.



8880.7.  Governing Definitions
   The definitions contained in this Chapter shall govern the
construction of this Chapter unless the context requires otherwise.




8880.8.  "Lottery" or "California State Lottery"
   "Lottery" or "California State Lottery" means the California State
Lottery created and operated pursuant to this Chapter.




8880.9.  "Commissioner"
   "Commissioner" means one of the members of the Lottery Commission
appointed by the Governor pursuant to this Chapter to oversee the
California State Lottery.



8880.10.  "Director"
   "Director" means the Director of the California State Lottery
appointed by the Governor pursuant to this Chapter as the chief
administrator of the California State Lottery.



8880.11.  "Lottery Commission" or "Commission"
   "Lottery Commission" or "Commission" means the five members
appointed by the Governor pursuant to this Chapter to oversee the
Lottery and the Director.



8880.12.  "Lottery Game"
   "Lottery Game" means any procedure authorized by the commission
whereby prizes are distributed among persons who have paid, or who
have unconditionally agreed to pay, for tickets or shares which
provide the opportunity to win those prizes.



8880.13.  "Lottery Game Retailer"
   "Lottery Game Retailer" means a person or organization with whom
the Lottery Commission may contract for the purpose of selling
tickets or shares in Lottery Games to the public.



8880.14.  "Lottery Contractor"
   "Lottery Contractor" means a person or organization with whom the
Lottery has contracted for the purpose of providing goods and
services required by the Lottery.



State Codes and Statutes

State Codes and Statutes

Statutes > California > Gov > 8880-8880.14

GOVERNMENT CODE
SECTION 8880-8880.14



8880.  Citation of Chapter
   This Chapter shall be known and may be cited as the California
State Lottery Act of 1984.



8880.1.  Purpose and Intent
   The People of the State of California declare that the purpose of
this Act is support for preservation of the rights, liberties and
welfare of the people by providing additional monies to benefit
education without the imposition of additional or increased taxes.
   The People of the State of California further declare that it is
their intent that the net revenues of the California State Lottery
shall not be used as substitute funds but rather shall supplement the
total amount of money allocated for public education in California.




8880.2.  Activities Not Affected
   Except for the state-operated lottery established by this Chapter,
nothing in this Chapter shall be construed to repeal or modify
existing State law with respect to the prohibition of casino
gambling, punch boards, slot machines, dog racing, video poker or
blackjack machines paying prizes, or any other forms of gambling.



8880.3.  Prohibition on Use of State Funds
   No appropriations, loans, or other transfer of State funds shall
be made to the California State Lottery Commission except for a
temporary line of credit for initial start-up costs as provided in
this Act.



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 1998-99 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 1997-98
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) 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) 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 remain in effect only until December 31 of
the year of 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 that
date is repealed, unless a later enacted statute, that is enacted
before December 31 of that year, deletes or extends that date.



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 1998-99 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 1997-98
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) 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) 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 January 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.



8880.4.5.  (a) Following the end of each full fiscal year, the
commission shall calculate and report to the Controller and to the
Legislature the amount of total net revenues allocated to the benefit
of public education from the California State Lottery Education Fund
for that fiscal year.
   (b) To ensure increases in lottery net revenues allocated to
public education, if in any one of the first five full fiscal years
after the enactment of the act adding this section, the Controller
determines that both of the events described in paragraphs (1) and
(2) of subdivision (c) occur, then the Controller shall notify the
Legislature and the Governor, and post that notification on the
Controller's Internet Web site, and on January 1 of the following
year, both of the following shall occur:
   (1) The amendments made to Sections 8880.4, 8880.63, and 8880.64
by the act adding this section shall become inoperative.
   (2) Sections 8880.4, 8880.63, and 8880.64, as they existed prior
to the effective date of the act adding this section shall become
operative.
   (c) No later than September 1 following each of the first five
fiscal years in which the amendments made by the act adding this
section are in effect, the Controller shall report to the Legislature
whether either of the following occurred in the prior fiscal year:
   (1) The total net revenues allocated to the benefit of public
education from the California State Lottery Education Fund are less
than the total net revenues allocated to the benefit of public
education in the last full fiscal year prior to the enactment of the
act adding this section.
   (2) The annual average of total net revenues allocated to the
benefit of public education from the California State Lottery
Education Fund after the enactment of the act adding this section is
less than the total net revenues allocated to the benefit of public
education in the last full fiscal year prior to the enactment of the
act adding this section, adjusted for an annual growth rate of 1.8
percent or the actual growth rate of lottery revenues since enactment
of the act adding this section, whichever is greater.
   (d) If the conditions specified in subdivision (c) do not occur,
then in subsequent fiscal years, to ensure continued growth in
lottery net revenues allocated to public education, the commission,
when setting the percentage required in subparagraph (A) of paragraph
(2) of subdivision (a) of Section 8880.4, shall ensure that net
revenues allocated to public schools are at least as much as were
allocated on average in the prior five fiscal years, and increased in
proportion to any upward increases in lottery net revenues.
   (e) At the end of the first five full fiscal years following
enactment of the act adding this section, the Controller shall
convene a lottery review group to consist of the Controller, the
Superintendent of Public Instruction, and the chairperson of the
commission. The review group shall report to the Legislature, no
later than December 31 following the final fiscal year, on whether
the amendments made by the act adding this section have furthered the
purposes of the California State Lottery Act of 1984 as intended.
   (f) This section shall remain in effect only until December 31 of
the year of notification from the Controller to the Legislature and
the Governor that the events described in paragraphs (1) and (2) of
subdivision (c) have occurred, and as of that date is repealed,
unless a later enacted statute, that is enacted before December 31 of
that year, deletes or extends that date.



8880.5.  Allocations for education:
   The California State Lottery Education Fund is created within the
State Treasury, and is continuously appropriated for carrying out the
purposes of this chapter. The Controller shall draw warrants on this
fund and distribute them quarterly in the following manner, provided
that the payments specified in subdivisions (a) to (g), inclusive,
shall be equal per capita amounts.
   (a) (1) Payments shall be made directly to public school
districts, including county superintendents of schools, serving
kindergarten and grades 1 to 12, inclusive, or any part thereof, on
the basis of an equal amount for each unit of average daily
attendance, as defined by law and adjusted pursuant to subdivision
(l).
   (2) For purposes of this paragraph, in each of the 2008-09,
2009-10, 2010-11, 2011-12, and 2012-13 fiscal years, the number of
units of average daily attendance in each of those fiscal years for
programs for public school districts, including county
superintendents of schools, serving kindergarten and grades 1 to 12,
inclusive, shall include the same amount of average daily attendance
for classes for adults and regional occupational centers and programs
used in the calculation made pursuant to this subdivision for the
2007-08 fiscal year.
   (b) Payments shall also be made directly to public school
districts serving community colleges, on the basis of an equal amount
for each unit of average daily attendance, as defined by law.
   (c) Payments shall also be made directly to the Board of Trustees
of the California State University on the basis of an amount for each
unit of equivalent full-time enrollment. Funds received by the
trustees shall be deposited in and expended from the California State
University Lottery Education Fund, which is hereby created or, at
the discretion of the trustees, deposited in local trust accounts in
accordance with subdivision (j) of Section 89721 of the Education
Code.
   (d) Payments shall also be made directly to the Regents of the
University of California on the basis of an amount for each unit of
equivalent full-time enrollment.
   (e) Payments shall also be made directly to the Board of Directors
of the Hastings College of the Law on the basis of an amount for
each unit of equivalent full-time enrollment.
   (f) Payments shall also be made directly to the Department of the
Youth Authority for educational programs serving kindergarten and
grades 1 to 12, inclusive, or any part thereof, on the basis of an
equal amount for each unit of average daily attendance, as defined by
law.
   (g) Payments shall also be made directly to the two California
Schools for the Deaf, the California School for the Blind, and the
three Diagnostic Schools for Neurologically Handicapped Children, on
the basis of an amount for each unit of equivalent full-time
enrollment.
   (h) Payments shall also be made directly to the State Department
of Developmental Services and the State Department of Mental Health
for clients with developmental or mental disabilities who are
enrolled in state hospital education programs, including
developmental centers, on the basis of an equal amount for each unit
of average daily attendance, as defined by law.
   (i) No Budget Act or other statutory provision shall direct that
payments for public education made pursuant to this chapter be used
for purposes and programs (including workload adjustments and
maintenance of the level of service) authorized by Chapters 498, 565,
and 1302 of the Statutes of 1983, Chapter 97 or 258 of the Statutes
of 1984, or Chapter 1 of the Statutes of the 1983-84 Second
Extraordinary Session.
   (j) School districts and other agencies receiving funds
distributed pursuant to this chapter may at their option utilize
funds allocated by this chapter to provide additional funds for those
purposes and programs prescribed by subdivision (i) for the purpose
of enrichment or expansion.
   (k) As a condition of receiving any moneys pursuant to subdivision
(a) or (b), each district and county superintendent of schools shall
establish a separate account for the receipt and expenditure of
those moneys, which account shall be clearly identified as a lottery
education account.
   (l) Commencing with the 1998-99 fiscal year, and each year
thereafter, for the purposes of subdivision (a), average daily
attendance shall be increased by the statewide average rate of
excused absences for the 1996-97 fiscal year as determined pursuant
to the provisions of Chapter 855 of the Statutes of 1997. The
statewide average excused absence rate, and the corresponding
adjustment factor required for the operation of this subdivision,
shall be certified to the State Controller by the Superintendent of
Public Instruction.
   (m) It is the intent of this chapter that all funds allocated from
the California State Lottery Education Fund shall be used
exclusively for the education of pupils and students and no funds
shall be spent for acquisition of real property, construction of
facilities, financing of research, or any other noninstructional
purpose.


8880.6.  Other Statutory Provisions
   Sections 320, 321, 322, 323, 324, 325, 326, and 328 of the Penal
Code do not apply to the California State Lottery or its operations.
This exemption applies only to the operators of the Lottery and shall
not be construed to change existing law relating to lotteries
operated by persons or entities other than the Lottery.



8880.7.  Governing Definitions
   The definitions contained in this Chapter shall govern the
construction of this Chapter unless the context requires otherwise.




8880.8.  "Lottery" or "California State Lottery"
   "Lottery" or "California State Lottery" means the California State
Lottery created and operated pursuant to this Chapter.




8880.9.  "Commissioner"
   "Commissioner" means one of the members of the Lottery Commission
appointed by the Governor pursuant to this Chapter to oversee the
California State Lottery.



8880.10.  "Director"
   "Director" means the Director of the California State Lottery
appointed by the Governor pursuant to this Chapter as the chief
administrator of the California State Lottery.



8880.11.  "Lottery Commission" or "Commission"
   "Lottery Commission" or "Commission" means the five members
appointed by the Governor pursuant to this Chapter to oversee the
Lottery and the Director.



8880.12.  "Lottery Game"
   "Lottery Game" means any procedure authorized by the commission
whereby prizes are distributed among persons who have paid, or who
have unconditionally agreed to pay, for tickets or shares which
provide the opportunity to win those prizes.



8880.13.  "Lottery Game Retailer"
   "Lottery Game Retailer" means a person or organization with whom
the Lottery Commission may contract for the purpose of selling
tickets or shares in Lottery Games to the public.



8880.14.  "Lottery Contractor"
   "Lottery Contractor" means a person or organization with whom the
Lottery has contracted for the purpose of providing goods and
services required by the Lottery.