BILL NUMBER: ABX3 12 AMENDED
BILL TEXT
AMENDED IN SENATE FEBRUARY 14, 2009
AMENDED IN ASSEMBLY JANUARY 7, 2009
INTRODUCED BY Assembly Member Evans
JANUARY 5, 2009
An act relating to the Budget Act of 2008.
An act to amend Sections 8880.5.5 and 8880.56 of, to add Ar
ticle 4.5 (commencing with Section 8880.46.5) to Chapter 12.5 of
Division 1 of Title 2 of, and to repeal Sections 8880.43 and 8880.67
of, the Government Code, relating to the California State Lottery,
and declaring the urgency thereof, to take effect immediately.
LEGISLATIVE COUNSEL'S DIGEST
AB 12, as amended, Evans. Budget Act of 2008.
California State Lottery.
This bill would express the intent of the Legislature to make
statutory changes relating to the Budget Act of 2008.
(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.
The
(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.
Vote: majority 2/3 . Appropriation:
no. Fiscal committee: no yes .
State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 8880.5.5 of the
Government Code , as added by Chapter 764 of the Statutes
of 2008, is amended to read:
8880.5.5. (a) Notwithstanding Section 13340 of the Government
Code, commencing with the 2009-10 fiscal year and each fiscal year
thereafter, the following annual appropriations are hereby made from
the General Fund:
(1) To the State Department of Education, for allocation to school
districts, county offices of education, and charter 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) of Section 8880.5, an amount equal to the payments made during
the 2008-09 fiscal year pursuant to subdivision (a) of Section
8880.5, adjusted for inflation and attendance. The amount
appropriated each year pursuant to this paragraph shall be determined
by multiplying the amount appropriated in the preceding fiscal year
by one plus the percent change in average daily attendance, as
defined by law and adjusted pursuant to subdivision (l) of Section
8880.5, for school districts, county offices of education, and
charter schools serving kindergarten and grades 1 to 12 ,
inclusive, from the second preceding fiscal year to the
preceding fiscal year and then by applying a cost-of-living
adjustment pursuant to paragraph (10) of this subdivision.
(2) To the Board of Governors of the California Community
Colleges, for allocation to community college districts, on the basis
of an equal amount for each full time equivalent student, as defined
by law, an amount equal to the payments made during the 2008-09
fiscal year pursuant to subdivision (b) of Section 8880.5, adjusted
for inflation and attendance. The amount appropriated each year
pursuant to this paragraph shall be determined by multiplying the
amount appropriated in the preceding fiscal year by one plus the
percent change in full time equivalent students for community college
districts from the second preceding fiscal year to the preceding
fiscal year and then by applying a cost of living adjustment pursuant
to paragraph (10) of this subdivision.
(3) To the Board of Trustees of the California State University,
an amount equal to the payments made during the 2008-09 fiscal year
pursuant to subdivision (c) of Section 8880.5, adjusted for inflation
and attendance. The amount appropriated each year pursuant to this
paragraph shall be determined by multiplying the amount appropriated
in the preceding fiscal year by one plus the percent change in
full-time equivalent students for the California State University
system from the second preceding fiscal year to the preceding fiscal
year and then by applying a cost-of-living adjustment pursuant to
paragraph (10) of this subdivision.
(4) To the Regents of the University of California, an amount
equal to the payments made during the 2008-09 fiscal year pursuant to
subdivision (d) of Section 8880.5, adjusted for inflation and
attendance. The amount appropriated each year pursuant to this
paragraph shall be determined by multiplying the amount appropriated
in the preceding fiscal year by one plus the percent change in
full-time equivalent students for the University of California system
from the second preceding fiscal year to the preceding fiscal year
and then by applying a cost-of-living adjustment pursuant to
paragraph (10) of this subdivision.
(5) To the Board of Directors of the Hastings College of the Law,
an amount equal to the payments made during the 2008-09 fiscal year
pursuant to subdivision (e) of Section 8880.5, adjusted for inflation
and attendance. The amount appropriated each year pursuant to this
paragraph shall be determined by multiplying the amount appropriated
in the preceding fiscal year by one plus the percent change in
full-time equivalent students for the Hastings College of the Law
from the second preceding fiscal year to the preceding fiscal year
and then by applying a cost-of-living adjustment pursuant to
paragraph (10) of this subdivision.
(6) To the California Department of Corrections and
Rehabilitation, for educational programs serving kindergarten and
grades 1 to 12, inclusive, or any part thereof, an amount equal to
the payments made during the 2008-09 fiscal year pursuant to
subdivision (f) of Section 8880.5, adjusted for inflation and
attendance. The amount appropriated each year pursuant to this
paragraph shall be determined by multiplying the amount appropriated
in the preceding fiscal year by one plus the percent change in
equivalent average daily attendance for the Department of Corrections
and Rehabilitation Division of Juvenile Justice from the second
preceding fiscal year to the preceding fiscal year and then by
applying a cost-of-living adjustment pursuant to paragraph (10) of
this subdivision.
(7) To the State Department of Education, for support of the State
Special Schools, an amount equal to the payments made during the
2008-09 fiscal year pursuant to subdivision (g) of Section 8880.5,
adjusted for inflation and attendance. The amount appropriated each
year pursuant to this paragraph shall be determined by multiplying
the amount appropriated in the preceding fiscal year by one plus the
percent change in equivalent average daily attendance for the State
Special Schools from the second preceding fiscal year to the
preceding fiscal year and then by applying a cost-of-living
adjustment pursuant to paragraph (10) of this subdivision.
(8) To the State Department of Developmental Services, for clients
with developmental disabilities who are enrolled in developmental
center education programs, an amount equal to the payments made to
the State Department of Developmental Services during the 2008-09
fiscal year pursuant to subdivision (h) of Section 8880.5, adjusted
for inflation and attendance. The amount appropriated each year
pursuant to this paragraph shall be determined by multiplying the
amount appropriated in the preceding fiscal year by one plus the
percent change in equivalent average daily attendance for the State
Department of Developmental Services from the second preceding fiscal
year to the preceding fiscal year and then by applying a
cost-of-living adjustment pursuant to paragraph (10) of this
subdivision.
(9) To the State Department of Mental Health, for clients with
mental disabilities who are enrolled in state hospital education
programs, an amount equal to the payments made to the State
Department of Mental Health during the 2008-09 fiscal year pursuant
to subdivision (h) of Section 8880.5, adjusted for inflation and
attendance. The amount appropriated each year pursuant to this
paragraph shall be determined by multiplying the amount appropriated
in the preceding fiscal year by one plus the percent change in
equivalent average daily attendance for the State Department of
Mental Health from the second preceding fiscal year to the preceding
fiscal year and then by applying a cost-of-living adjustment pursuant
to paragraph (10) of this subdivision.
(10) The amounts appropriated pursuant to this subdivision shall
be increased each year by the change in the cost-of-living determined
pursuant to paragraph (1) of subdivision (e) of Section 8 of Article
XIII B of the California Constitution.
(b) The amounts appropriated for the 2009-10 fiscal year pursuant
to paragraphs (1), (2), (6), (7), (8), and (9) of subdivision (a)
shall be in addition to the sums required by, and shall not be
considered towards fulfilling the funding requirements of,
paragraph (2) of subdivision (b) of Section 8 of Article
XVI of the California Constitution.
(c) The amounts appropriated for the 2009-10 fiscal year pursuant
to paragraphs (1), (2), (6), (7), (8), and (9) of subdivision (a)
shall not offset or in any way reduce the maintenance factor
determined pursuant to subdivisions (d) and (e) of Section 8 of
Article XVI of the California Constitution, and shall be in addition
to the amount of maintenance factor allocated in the 2009-10 fiscal
year pursuant to subdivision (e) of Section 8 of Article XVI of the
California Constitution.
(d) Commencing with the 2009-10 2010-11
fiscal year and each fiscal year thereafter, for the purposes
of making the computations required by Section 8 of Article XVI of
the California Constitution, the appropriations made by paragraphs
(1), (2), (6), (7), (8), and (9) of subdivision (a) of this section
for the prior fiscal year shall be deemed to be included
within the "total allocations to school districts and community
college districts from General Fund proceeds of taxes appropriated
pursuant to Article XIII B," as defined in subdivision (e) of Section
41202 of the Education Code.
(e) Commencing with the 2009-10 2010-11
fiscal year, the percentage determined pursuant to paragraph
(1) of subdivision (b) of Section 8 of Article XVI of the California
Constitution, as adjusted pursuant to Chapter 2 (commencing with
Section 41200) of Part 24 of the Education Code, shall be increased
by adding to it the number of percentage points determined by
dividing the total amount allocated pursuant to subdivisions (a),
(b), (f), (g), and (h) of Section 8880.5 of the Government
Code for the 2008-09 fiscal year by the total General Fund
revenues that may be appropriated pursuant to Article XIII B of the
California Constitution for the 2008-09 fiscal year.
(f) Commencing with the 2009-10 fiscal year, references in law to
lottery education funds, to funds allocated pursuant to Section
8880.5, to funds allocated from the California State Lottery
Education Fund, or similar references in law to the proceeds of
lottery revenues allocated for the benefit of public education to the
entities described in subdivisions (a), (b), (f), (g), and (h) of
Section 8880.5 shall be deemed to be references to the funds
appropriated pursuant to this section. This subdivision shall be
broadly construed to effectuate its purpose.
SEC. 2. Section 8880.43 of the
Government Code is repealed.
8880.43. Independent Audit of Lottery Finances
The director shall engage an independent firm of certified public
accountants to conduct an annual audit of all accounts and
transactions of the lottery. The audited financial statements shall
be presented to the commission, the Governor, the Controller, the
Treasurer, the Attorney General, and the Legislature not more than
120 days after the close of the fiscal year.
SEC. 3. Article 4.5 (commencing with Section
8880.46.5) is added to Chapter 12.5 of Division 1 of Title 2 of the
Government Code , to read:
Article 4.5. Public And Financial Accountability
8880.46.5. The director shall engage an independent firm of
certified public accountants to conduct an annual audit of all
accounts and transactions of the lottery. The audited financial
statements shall be presented to the commission, the Governor, the
Controller, the Treasurer, the Attorney General, and the Legislature
not more than 120 days after the close of the fiscal year. The
independent auditor's report shall be posted on the Internet.
8880.46.6. The Controller shall conduct quarterly and annual
postaudits of all accounts and transactions of the commission and
other special postaudits as the Controller deems necessary. The
Controller or his or her agents conducting an audit under this
chapter shall have access and authority to examine any and all
records of the commission, its distributing agencies, lottery
contractors, and lottery game retailers. The Controller may issue a
public report of any annual postaudit, which shall be posted on the
Internet.
SEC. 4. Section 8880.56 of the
Government Code is amended to read:
8880.56. (a) Notwithstanding any other
provisions provision of this chapter or of
any other law, the director may purchase or lease
goods and services as are necessary for effectuating the purposes of
this chapter has express authority, subject
only to commission approval, to make any and all expenditures that
are necessary or reasonable for effectuating the purposes of this
chapter, including, but not limited to, payment for the costs of
supplies, materials, tickets, independent audit services, independent
studies, data transmission, advertising, promotion, consumer,
retailer, and employee incentives, public relations, communications,
compensation paid to the lottery game retailers, bonding for lottery
game retailers, printing, distribution of tickets or shares,
reimbursement of costs of services provided to the lottery by other
governmental entities, and payment for the costs of any other goods
and services necessary or reasonable for effectuating the purposes of
this chapter . The director may not contract with any private
party for the operation and administration of the California State
Lottery, created by this chapter. However, this section does not
preclude procurements which that
integrate functions such as game design, supply, advertising, and
public relations. In all procurement decisions, the director shall,
subject to the approval of the commission, 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, shall take into account the particularly sensitive
nature of the California State Lottery and shall act to promote and
ensure integrity, security, honesty, and fairness in the operation
and administration of the lottery and the objective of raising net
revenues for the benefit of the public purpose described in this
chapter. With regard to employee incentives, the director shall
exercise his or her authority consistent with the
provisions of Chapter 10.3 (commencing with Section 3512) of Division
4 of Title 1.
(b) Notwithstanding any other provision of this chapter, the
following shall apply to contracts or procurement by the lottery:
(1) To ensure the fullest competition, the commission shall adopt
and publish competitive bidding procedures for the award of any
procurement or contract involving an expenditure of more than
one five hundred thousand dollars
($100,000) ($500,000) . The competitive
bidding procedures shall include, but not be limited to,
requirements for submission of bids and accompanying documentation,
guidelines for the use of requests for proposals, invitations to bid,
or other methods of bidding, and a bid protest procedure. The
director shall determine whether the goods or services subject to
this paragraph are available through existing contracts or price
schedules of the Department of General Services.
(2) The contracting standards, procedures, and rules contained in
this subdivision shall also apply with respect to any subcontract
involving an expenditure of more than one
five hundred thousand dollars ($100,000)
($500,000) . The commission shall establish, as part of
its bidding procedures for general contracts, subcontracting
guidelines that implement this requirement.
(3) The provisions of Article 1 (commencing with Section 11250) of
Chapter 3 of Part 1 of Division 3 apply to the commission.
(4) The commission is subject to the Small Business Procurement
and Contract Act, as provided in Chapter 6.5 (commencing with Section
14835) of Part 5.5 of Division 3.
(5) In advertising or awarding any general contract for the
procurement of goods and services exceeding five hundred thousand
dollars ($500,000), the commission and the director shall require all
bidders or contractors, or both, to include specific plans or
arrangements to utilize subcontracts with socially and economically
disadvantaged small business concerns. The subcontracting plans shall
delineate the nature and extent of the services to be utilized, and
those concerns or individuals identified for subcontracting if known.
It is the intention of the Legislature in enacting this section to
establish as an objective of the utmost importance the advancement
of business opportunities for these small business concerns in the
private business activities created by the California State Lottery.
In that regard, the commission and the director shall have an
affirmative duty to achieve the most feasible and practicable level
of participation by socially and economically disadvantaged small
business concerns in its procurement programs.
By July 1, 1986, the commission shall adopt proposal evaluation
procedures, criteria, and contract terms which are consistent with
the advancement of business opportunities for small business concerns
in the private business activities created by the California State
Lottery and which will achieve the most feasible and practicable
level of participation by socially and economically disadvantaged
small business concerns in its procurement programs. The proposal
evaluation procedures, criteria, and contract terms adopted shall be
reported in writing to both houses of the Legislature on or before
July 1, 1986.
For the purposes of this section, socially and economically
disadvantaged persons include women, Black Americans, Hispanic
Americans, Native Americans (including American Indians, Eskimos,
Aleuts, and Native Hawaiians), Asian-Pacific Americans (including
persons whose origins are from Japan, China, the Philippines,
Vietnam, Korea, Samoa, Guam, the United States Trust Territories of
the Pacific, Northern Marianas, Laos, Cambodia, and Taiwan), and
other minorities or any other natural persons found by the commission
to be disadvantaged.
The commission shall report to the Legislature by July 1, 1987,
and by each July 1 thereafter, on the level of participation of small
businesses, socially and economically disadvantaged businesses, and
California businesses in all contracts awarded by the commission.
(6) The commission shall prepare and submit to the Legislature by
October 1 of each year a report detailing the lottery's purchase of
goods and services through the Department of General Services. The
report shall also include a listing of contracts awarded for more
than one hundred thousand dollars ($100,000), the name of the
contractor, amount and term of the contract, and the basis upon which
the contract was awarded.
The
(c) The lottery shall fully
comply with the requirements of paragraphs (2) to (5), inclusive,
of subdivision (b), except that any function or role which
is otherwise the responsibility of the Department of Finance or the
Department of General Services shall instead, for purposes of this
subdivision, be the sole responsibility of the lottery, which shall
have the sole authority to perform that function or role.
(d) Where a conflict exists between the provisions of this chapter
and any other provision of law, the provisions of this chapter shall
control.
SEC. 5. Section 8880.67 of the
Government Code is repealed.
8880.67. State Controller Audits
The State Controller shall conduct quarterly and annual
post-audits of all accounts and transactions of the Commission and
other special post-audits as the State Controller deems necessary.
The Controller or his agents conducting an audit under this Chapter
shall have access and authority to examine any and all records of the
Commission, its distributing agencies, Lottery Contractors, and
Lottery Game Retailers.
SEC. 6. Sections 1 and 4 of this act amend Chapter
12.5 (commencing with Section 8880) of Division 1 of Title 2 of the
Government Code, an initiative statute, and shall become effective
only when submitted to and approved by the voters. Notwithstanding
subdivision (b) of Section 19 of Chapter 764 of the Statutes of 2008,
the Secretary of State shall submit Section 8880.5.5 of the
Government Code, as amended by Section 1 of this act, and Section
8880.56 of the Government Code, as amended by Section 4 of this act,
to the voters at the next statewide election instead of Section
8880.5.5 of the Government Code, as added by Section 6 of Chapter 764
of the Statutes of 2008, and Section 8880.56 of the Government Code,
as amended by Section 12 of Chapter 764 of the Statutes of 2008.
SEC. 7. The Legislature finds and declares that
Sections 2, 3, and 5 of this act further the purposes of the
California State Lottery Act of 1984, enacted by Proposition 37 at
the November 6, 1984, general election.
SECTION 1. It is the intent of the Legislature
to make statutory changes relating to the Budget Act of 2008.
SEC. 2. SEC. 8. This act addresses
the fiscal emergency declared by the Governor by proclamation on
December 19, 2008, pursuant to subdivision (f) of Section 10 of
Article IV of the California Constitution.
SEC. 9. This act is an urgency statute necessary
for the immediate preservation of the public peace, health, or safety
within the meaning of Article IV of the Constitution and shall go
into immediate effect. The facts constituting the necessity are:
In order to make the necessary statutory changes to increase
revenues at the earliest possible time, it is necessary that this act
take effect immediately.