BILL ANALYSIS                                                                                                                                                                                                    



                                                                AB 12 X3
                                                                Page  1

        (  Without Reference to File  )

        CONCURRENCE IN SENATE AMENDMENTS
        AB 12 X3 (EVANS)
        As Amended  February 14, 2009
        2/3 vote.  Urgency
         
         ----------------------------------------------------------------- 
        |ASSEMBLY:  |     |(January 12,    |SENATE: |     |February 14,   |
        |           |     |2009)           |        |     |2009           |
         ----------------------------------------------------------------- 
             (vote not relevant)                (vote not available)
         
         Original Committee Reference:    RULES  

         SUMMARY  :  Makes technical and programmatic statutory changes to  
        clarify education appropriations, clarifies the California State  
        Lottery (Lottery) director's authority relative to state employees,  
        and requires Lottery audits be posted on the Internet.  These changes  
        would be placed before the voters, along with various sections of  
        Chapter 764, Statutes of 2008 (AB 1654), the lottery modernization  
        trailer bill for the Budget Act of 2008, at the next statewide  
        election.

         The Senate amendments  delete the Assembly version of this bill, and  
        instead:

        1)Make various clarifications to the statutory appropriations  
          contained in AB 1654, the Lottery modernization trailer bill for  
          the Budget Act of 2008, including the following:

                a)        Clarify that for the 2009-10 fiscal year, the  
                  General Fund (GF) amounts appropriated for K-12 education  
                  and community colleges under the Lottery proposal shall be  
                  in addition to the Proposition 98 minimum guarantee.

                b)        Clarify that the GF amounts appropriated from  
                  2009-10 for K-12 education and community colleges under the  
                  lottery proposal will be included in the Proposition 98  
                  base minimum guarantee in 2010-11 and future years.

                c)        Clarify the methodology for adjusting the  
                  Proposition 98 "Test 1" factor to ensure all future  
                  Proposition 98 calculations include the GF amounts  
                  appropriated for K-12 education and community colleges  








                                                                AB 12 X3
                                                                Page  2

                  under the lottery proposal.

        1)Clarify the lottery director's authority relative to state  
          employees.  AB 1654 broadened the lottery director's expenditure  
          authority to include all expenditures "necessary or reasonable for  
          effectuating the purposes" of the Lottery, including employee  
          incentives.  This bill clarifies that, in exercising his/her  
          authority relative to employee incentives, the director is still  
          bound by existing state law governing state employer-employee  
          relations.

        2)Revise and re-codifies existing Lottery audit requirements to  
          require that various reports be posted on the Internet.

         AS PASSED BY THE ASSEMBLY  , this bill expressed the intent of the  
        Legislature to make statutory changes relating to the Budget Act of  
        2008.


         Analysis Prepared by  :   Joe Stephenshaw / BUDGET / (916) 319-2099FN:  
        0000147