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