AB 2215: California State Lottery Act: California State University Lottery Education Fund: California State University Trust Fund.
- Session Year: 2015-2016
- House: Assembly
- Latest Version Date: 2016-08-29
(1)The California State Lottery Act of 1984, enacted by initiative, 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 California State Lottery Education Fund and provides for direct payments from the fund to various entities, including the Board of Trustees of the California State University. The act requires funds received by the trustees to be deposited in, and expended from, the California State University Lottery Education Fund or, at the discretion of the trustees, deposited in local trust accounts.
Existing law establishes the California State University Trust Fund and specifies its sources of revenue. Existing law provides that all money received by the fund shall augment the support appropriation to the California State University for the fiscal year to which the collections apply.
This bill would require the trustees to deposit funds received from the California State Lottery Education Fund in the California State University Trust Fund instead of the California State University Lottery Education Fund. The bill would continue to allow the trustees, in their discretion, to deposit the funds in local trust accounts.
(2)The California State Lottery Act of 1984, an initiative measure, specifies that none of its provisions may be changed except to further its purpose by a bill passed by a 2/3 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, as specified, and that the act shall not be interpreted to expand the lawful uses of funds allocated from the California State Lottery Education Fund to the trustees.
(1)The California State Lottery Act of 1984, enacted by initiative, 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 California State Lottery Education Fund and provides for direct payments from the fund to various entities, including the Board of Trustees of the California State University. The act requires funds received by the trustees to be deposited in, and expended from, the California State University Lottery Education Fund or, at the discretion of the trustees, deposited in local trust accounts.
Existing law establishes the California State University Trust Fund and specifies its sources of revenue. Existing law provides that all money received by the fund shall augment the support appropriation to the California State University for the fiscal year to which the collections apply.
This bill would require the trustees to deposit funds received from the California State Lottery Education Fund in the California State University Trust Fund instead of the California State University Lottery Education Fund. The bill would continue to allow the trustees, in their discretion, to deposit the funds in local trust accounts.
(2)The California State Lottery Act of 1984, an initiative measure, specifies that none of its provisions may be changed except to further its purpose by a bill passed by a 2/3 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, as specified, and that the act shall not be interpreted to expand the lawful uses of funds allocated from the California State Lottery Education Fund to the trustees.
(1)The California State Lottery Act of 1984, enacted by initiative, 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 California State Lottery Education Fund and provides for direct payments from the fund to various entities, including the Board of Trustees of the California State University. The act requires funds received by the trustees to be deposited in, and expended from, the California State University Lottery Education Fund or, at the discretion of the trustees, deposited in local trust accounts.
Existing law establishes the California State University Trust Fund and specifies its sources of revenue. Existing law provides that all money received by the fund shall augment the support appropriation to the California State University for the fiscal year to which the collections apply.
This bill would require the trustees to deposit funds received from the California State Lottery Education Fund in the California State University Trust Fund instead of the California State University Lottery Education Fund. The bill would continue to allow the trustees, in their discretion, to deposit the funds in local trust accounts.
(2)The California State Lottery Act of 1984, an initiative measure, specifies that none of its provisions may be changed except to further its purpose by a bill passed by a 2/3 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, as specified, and that the act shall not be interpreted to expand the lawful uses of funds allocated from the California State Lottery Education Fund to the trustees.
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 200809, 200910, 201011, 201112, 201213, 201314, and 201415 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 200708 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 Trust Fund 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 State Hospitals 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 198384 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 school 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 199899 fiscal year, and each year thereafter, for purposes of subdivision (a), average daily attendance shall be increased by the statewide average rate of excused absences for the 199697 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 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.
SEC. 2.The Legislature finds and declares both of the following:
(a)This act furthers the purpose of the California State Lottery Act of 1984, enacted by Proposition 37 at the November 6, 1984, general election by eliminating inefficient administrative procedures that the Board of Trustees of the California State University and the Controller utilize on a quarterly basis.
(b)This act shall not be interpreted to expand the lawful uses of funds allocated from the California State Lottery Education Fund to the Board of Trustees of the California State University.
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 200809, 200910, 201011, 201112, 201213, 201314, and 201415 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 200708 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 Trust Fund 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 State Hospitals 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 198384 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 school 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 199899 fiscal year, and each year thereafter, for purposes of subdivision (a), average daily attendance shall be increased by the statewide average rate of excused absences for the 199697 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 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.
SEC. 2.The Legislature finds and declares both of the following:
(a)This act furthers the purpose of the California State Lottery Act of 1984, enacted by Proposition 37 at the November 6, 1984, general election by eliminating inefficient administrative procedures that the Board of Trustees of the California State University and the Controller utilize on a quarterly basis.
(b)This act shall not be interpreted to expand the lawful uses of funds allocated from the California State Lottery Education Fund to the Board of Trustees of the California State University.
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 200809, 200910, 201011, 201112, 201213, 201314, and 201415 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 200708 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 Fund, which is hereby created Trust Fund 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 State Hospitals 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 programs, including workload adjustments and maintenance of the level of service) 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 198384 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 school 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 199899 fiscal year, and each year thereafter, for purposes of subdivision (a), average daily attendance shall be increased by the statewide average rate of excused absences for the 199697 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 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.
SEC. 2.The Legislature finds and declares both of the following:
(a)This act furthers the purpose of the California State Lottery Act of 1984, enacted by Proposition 37 at the November 6, 1984, general election by eliminating inefficient administrative procedures that the Board of Trustees of the California State University and the Controller utilize on a quarterly basis.
(b)This act shall not be interpreted to expand the lawful uses of funds allocated from the California State Lottery Education Fund to the Board of Trustees of the California State University.
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Date
|
Status
|
|---|---|
| May 12, 2016 | Read third time. Passed. Ordered to the Senate. (Ayes 78. Noes 0.) |
| Aug 29, 2016 | Chaptered by Secretary of State - Chapter 227, Statutes of 2016. |
| Aug 29, 2016 | Approved by the Governor. |
| Aug 15, 2016 | Enrolled and presented to the Governor at 3:30 p.m. |
| Aug 11, 2016 | Read third time. Passed. Ordered to the Assembly. (Ayes 37. Noes 0. Page 4873.). |
| Aug 11, 2016 | Read third time. Passed. Ordered to the Assembly. |
| Aug 11, 2016 | In Assembly. Ordered to Engrossing and Enrolling. |
| Aug 2, 2016 | Read second time. Ordered to Consent Calendar. |
| Aug 1, 2016 | From committee: Be placed on second reading file pursuant to Senate Rule 28.8 and ordered to consent calendar. |
| Jun 14, 2016 | From committee: Do pass and re-refer to Com. on APPR. with recommendation: To Consent Calendar. (Ayes 12. Noes 0.) (June 14). Re-referred to Com. on APPR. |
| May 19, 2016 | Referred to Com. on G.O. |
| Feb 18, 2016 | Read first time. To print. |
| May 12, 2016 | Read third time. Passed. Ordered to the Senate. (Ayes 78. Noes 0. Page 4787.) |
| May 12, 2016 | Read third time. Passed. Ordered to the Senate. |
| May 12, 2016 | In Senate. Read first time. To Com. on RLS. for assignment. |
| May 5, 2016 | Read second time. Ordered to Consent Calendar. |
| May 4, 2016 | From committee: Do pass. To Consent Calendar. (Ayes 20. Noes 0.) (May 4). |
| Apr 20, 2016 | From committee: Do pass and re-refer to Com. on APPR. (Ayes 13. Noes 0.) (April 19). Re-referred to Com. on APPR. |
| Apr 7, 2016 | From committee: Do pass and re-refer to Com. on HIGHER ED. with recommendation: To Consent Calendar. (Ayes 18. Noes 0.) (April 6). Re-referred to Com. on HIGHER ED. |
| Mar 3, 2016 | Referred to Coms. on G.O. and HIGHER ED. |
| Feb 19, 2016 | From printer. May be heard in committee March 20. |
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Date
|
Description
|
Location
|
Votes
|
|
|---|---|---|---|---|
| Aug 11, 2016 | Consent Calendar 2nd AB2215 Medina | Senate Floor |
Passed |
|
| Jun 14, 2016 | Do pass, but first be re-referred to the Committee on [Appropriations] with the recommendation: To Consent Calendar | Senate Standing Committee on Governmental Organization |
Passed |
|
| May 12, 2016 | AB 2215 MEDINA Consent Calendar Second Day Regular Session | Assembly Floor |
Passed |
|
| May 4, 2016 | Do pass. To Consent Calendar. | Assembly Standing Committee on Appropriations |
Passed |
|
| Apr 19, 2016 | Do pass and be re-referred to the Committee on [Appropriations] | Assembly Standing Committee on Higher Education |
Passed |
|
| Apr 6, 2016 | Do pass and be re-referred to the Committee on [Higher Education] with recommendation: To Consent Calendar | Assembly Standing Committee on Governmental Organization |
Passed |
This list shows positions taken on this bill by organizations on the date displayed, which is linked to the original source.
Positions by individuals are not included.
|
Organization
|
Position
|
Date
|
|---|---|---|
| California Cannabis Industry Association | * Support | Jun 25, 2018 |
| United Cannabis Business Alliance | * Support | Jun 25, 2018 |
Office of Senate Floor Analyses (916) 651-1520 Fax: (916) 327-4478 | AB 2215 |
CONSENT
Bill No: AB 2215
Author: Medina (D) and Baker (R)
Introduced: 2/18/16
SENATE GOVERNMENTAL ORG. COMMITTEE: 12-0, 6/14/16
AYES: Hall, Bates, Block, Gaines, Galgiani, Glazer, Hernandez, Hill, Hueso, Lara, McGuire, Vidak
NO VOTE RECORDED: Berryhill
SENATE APPROPRIATIONS COMMITTEE: Senate Rule 28.8
ASSEMBLY FLOOR: 78-0, 5/12/16 (Consent) - See last page for vote
SUBJECT: California State Lottery Act: California State University Lottery Education Fund: California State University Trust Fund
SOURCE: California State University Board of Trustees
DIGEST: This bill requires the Board of Trustees of the California State University (CSU) to deposit funds received from the California State Lottery Education Fund in the CSU Trust Fund instead of the CSU Lottery Education Fund.
ANALYSIS:
Existing law:
- Authorizes, under the California State Lottery Act of 1984, the 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.
- Establishes the California State Lottery Education Fund and provides for direct payments from the fund to various entities, including the Board of Trustees of the CSU.
- Requires funds received by the CSU Board of Trustees to be deposited in, and expended from, the CSU Lottery Education Fund or, at the discretion of the trustees, deposited in local trust accounts.
- Establishes the CSU Trust Fund and specifies its sources of revenue.
- Provides that all money received by the CSU Trust Fund shall augment the support appropriation to the CSU for the fiscal year to which the collections apply.
This bill requires the CSU Board of Trustees to deposit funds received from the California State Lottery Education Fund in the CSU Trust Fund instead of the CSU Lottery Education Fund.
Background
Purpose of the bill. The author argues that, “this bill will allow the State Controller’s Office (SCO) to directly deposit lottery funds into the CSU Trust Fund, in order to streamline the accounting processes associated with utilizing the funds. The SCO has already approved this change, this bill is necessary for statutory conformity.”
CSU Lottery Education Fund. Under current law, funds from the CSU Education Fund are distributed quarterly by the SCO into the CSU Lottery Education Fund, which serves as the depository account for CSU lottery funds. CSU accounting staff must then submit quarterly transfer requests to move these funds into the CSU Trust Fund. They must also submit similar quarterly forms to move the associated interest accrued from lottery revenues.
Prior Legislation
AB 142 (Hayashi Chapter 13, Statutes of 2010) modified the allocation formula of the California State Lottery Act of 1984.
SB 1679 (Florez, 2008) would have required that no less than 87% of the total annual revenues from the sale of state lottery tickets or shares be used for prizes and to benefit education, and no more than 13% be used for lottery expenses. (Never heard in the Senate.)
FISCAL EFFECT: Appropriation: Fiscal Com.: Local:
California State University Board of Trustees (source)
California State Controller Betty T. Yee
None received
ARGUMENTS IN SUPPORT: According to the CSU Board of Trustees, “the CSU’s lottery funds are currently deposited into the CSU’s Lottery Education Fund. In order for CSU to allocate those funds to system and campus-based programs, staff must submit quarterly paperwork to the SCO to request the transfer of those funds to the CSU Trust Fund. This is permissible under existing law, but presents the CSU with a process that is unique among the three segments of public higher education in California.”
ASSEMBLY FLOOR: 78-0, 5/12/16
AYES: Achadjian, Alejo, Travis Allen, Arambula, Atkins, Baker, Bigelow, Bloom, Bonilla, Bonta, Brough, Brown, Calderon, Campos, Chang, Chau, Chávez, Chiu, Chu, Cooley, Cooper, Dababneh, Dahle, Daly, Dodd, Eggman, Frazier, Beth Gaines, Gallagher, Cristina Garcia, Eduardo Garcia, Gatto, Gipson, Gomez, Gonzalez, Gordon, Gray, Grove, Hadley, Harper, Roger Hernández, Holden, Irwin, Jones, Kim, Lackey, Levine, Linder, Lopez, Low, Maienschein, Mathis, Mayes, McCarty, Medina, Melendez, Mullin, Nazarian, Obernolte, O'Donnell, Olsen, Patterson, Quirk, Ridley-Thomas, Rodriguez, Salas, Santiago, Steinorth, Mark Stone, Thurmond, Ting, Wagner, Waldron, Weber, Wilk, Williams, Wood, Rendon
NO VOTE RECORDED: Burke, Jones-Sawyer
Prepared by: Felipe Lopez / G.O. / (916) 651-1530
8/3/16 19:27:45
**** END ****
SENATE COMMITTEE ON GOVERNMENTAL ORGANIZATION
Senator Isadore Hall, III
Chair
2015 - 2016 Regular
Bill No: 2215 Hearing Date: 6/14/2016
Author: | |||
Version: | 2/18/2016 Introduced | ||
Urgency: | No | Fiscal: | Yes |
Consultant: | Felipe Lopez | ||
SUBJECT: California State Lottery Act: California State University Lottery Education Fund: California State University Trust Fund
DIGEST: This bill requires the Board of Trustees of the California State University (CSU) to deposit funds received from the California State Lottery Education Fund in the California State University Trust Fund instead of the California State University Lottery Education Fund.
ANALYSIS:
Existing law:
- Authorizes, under the California State Lottery Act of 1984, the 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.
- Establishes the California State Lottery Education Fund and provides for direct payments from the fund to various entities, including the Board of Trustees of the CSU.
- Requires funds received by the CSU Board of Trustees to be deposited in, and expended from, the CSU Lottery Education Fund or, at the discretion of the trustees, deposited in local trust accounts.
- Establishes the CSU Trust Fund and specifies its sources of revenue.
- Provides that all money received by the CSU Trust Fund shall augment the support appropriation to the CSU for the fiscal year to which the collections apply.
This bill requires the CSU Board of Trustees to deposit funds received from the California State Lottery Education Fund in the CSU Trust Fund instead of the CSU Lottery Education Fund.
Background
Purpose of the bill. The author argues that, “this bill will allow the State Controller’s Office (SCO) to directly deposit lottery funds into the CSU Trust Fund, in order to streamline the accounting processes associated with utilizing the funds. The SCO has already approved this change, this bill is necessary for statutory conformity.”
California State University Lottery Education Fund. Under current law, funds from the CSU Education Fund are distributed quarterly by the SCO into the CSU Lottery Education Fund, which serves as the depository account for CSU lottery funds. CSU accounting staff then must submit quarterly transfer requests to move these funds into the CSU Trust Fund. They must also submit similar quarterly forms to move the associated interest accrued from lottery revenues.
According to the CSU Chancellor’s Office, in recent years, annual CSU Lottery Fund receipts have averaged around $45 million per year. Approximately 80% of funds are allocated directly to campuses for instructionally related programs and activities. The remaining funds are allocated for CSU programs that assist student education, such as the Summer Arts, Pre-Doctoral, and Doctoral Incentive programs. Approximately 1.2 percent of lottery resources are used by the CSU Chancellor’s Office to administer lottery fund operations and reporting requirements. The CSU sets aside $5 million for reserves, to prepare for cash-flow variations and other year-to-year economic uncertainties that could impact future fund receipts.
Prior/Related Legislation
AB 142 (Hayashi Chapter 13, Statutes of 2010) modified the allocation formula of the California State Lottery Act of 1984.
SB 1679 (Florez, 2008) would have required that no less than 87% of the total annual revenues from the sale of state lottery tickets or shares be used for prizes and to benefit education, and no more than 13% be used for lottery expenses. (Never heard in the Senate.)
SB 1011 (Florez, 2006) would have required, among other things that at least 50% of multistate lottery revenues to be allocated to the public in the form of prizes, at least 42% must benefit public education, and no more than 8% to be allocated for Lottery expenses. (Died on the Assembly Floor).
FISCAL EFFECT: Appropriation: Fiscal Com.: Local:
SUPPORT:
California State University Board of Trustees (Source)
California State Controller, Betty T. Yee
OPPOSITION:
None received
ARGUMENTS IN SUPPORT: According to the CSU Board of Trustees, “the CSU’s lottery funds are currently deposited into the CSU’s Lottery Education Fund. In order for CSU to allocate those funds to system and campus-based programs, staff must submit quarterly paperwork to the SCO to request the transfer of those funds to the CSU Trust Fund. This is permissible under existing law, but presents the CSU with a process that is unique among the three segments of public higher education in California.”
Date of Hearing: May 4, 2016
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Lorena Gonzalez, Chair
ABPCA Bill Id:AB 2215
Author:(Medina) – As Introduced Ver:February 18, 2016
Policy Committee: | Governmental Organization | Vote: | 18 - 0 |
Higher Education | 13 - 0 | ||
|
|
Urgency: No State Mandated Local Program: No Reimbursable: No
SUMMARY:
This bill requires the Board of Trustees of the California State University to deposit funds received from California State Lottery Education Fund into the California State University Trust Fund instead of the California State University Lottery Education Fund.
FISCAL EFFECT:
Minor cost savings for California State University (CSU) from streamlined processes.
COMMENTS:
- Purpose and background. According to the author, this bill will eliminate unnecessary administrative processes associated with utilizing funds from the California State University Lottery Education Fund.
Under current law, funds from the California State Lottery Education Fund are distributed quarterly into the California State University Lottery Education Fund, which serves as the depository account for CSU lottery funds. CSU accounting staff then submits quarterly transfer requests to move these funds into the California State University Trust Fund. After this, funds are then distributed to campuses and programs.
- Support from Controller. The State Controller supports AB 2215.
Analysis Prepared by: Luke Reidenbach / APPR. / (916) 319-2081
Date of Hearing: April 19, 2016
ASSEMBLY COMMITTEE ON HIGHER EDUCATION
Jose Medina, Chair
ABPCA Bill Id:AB 2215 (
Author:Medina) – As Introduced Ver:February 18, 2016
[Note: This bill was heard in the Assembly Governmental Organization Committee on April 6, 2016, and approved by a vote of 18-0.]
SUBJECT: California State Lottery Act: California State University Lottery Education Fund: California State University Trust Fund
SUMMARY: Would require the Board of Trustees of the California State University to deposit funds received from the California State Lottery Education Fund in the California State University Trust Fund instead of the California State University Lottery Education Fund.
EXISTING LAW: The California State Lottery Act (Lottery Act or Act) of 1984, enacted by initiative, authorizes a California State Lottery and provides for its operation and administration by the California State Lottery Commission (Commission) and the Director of the California State Lottery, with certain limitations.
- Requires the Commission to establish the percentage of total annual revenues of the state lottery to be allocated to the benefit of public education at a level that maximizes the total net revenues allocated for the benefit of public education.
- Requires that no more than 13 percent of the total annual revenues be used to pay Lottery expenses and that those expenses include all costs incurred in the operation and administration of the Lottery and all costs resulting from any contracts entered into for the purchase or lease of goods and services required by the Lottery.
- Establishes the California State Lottery Education Fund and provides for direct payments from the fund to various entities, including the Board of Trustees of the California State University (trustees).
- Requires funds received by the trustees to be deposited in, and expended from, the California State University Lottery Education Fund or, at the discretion of the trustees, deposited in local trust accounts.
- Establishes the California State University Trust Fund and specifies its sources of revenue.
- Provides that all money received by the Fund shall augment the support appropriation to the California State University for the fiscal year to which the collections apply.
FISCAL EFFECT: Unknown.
COMMENTS: Background. State Lottery Act of 1984 (Act) was created by a ballot measure, Proposition 37, which was approved by 58 percent of voters on November 6, 1984. The Act gave the Lottery a mission to provide supplemental funding for public schools and colleges. The Act specifies that the Lottery be operated and administered by a Commission appointed by the Governor. The Legislature has the authority to amend the Act if, by doing so, it furthers the purposes of the Act.
In April 2010, the Legislature passed Assembly Bill 142, which changed the Lottery’s funding formula to follow best practices. Those practices have helped lotteries throughout the nation increase sales and earn more money for their beneficiary. AB 142 limits administrative expenses to 13 percent of sales, while requiring that 87 percent of sales go back to the public in the form of prizes and contributions to education. The law gives the Lottery the flexibility to pay out a higher percentage of its revenues in prizes than it has in the past, but only if it does so in a way that increases the total amount of money that goes to public schools and colleges.
California State University Lottery Education Fund. Under current law, funds from the California State Lottery Education Fund are distributed quarterly by the State Controller’s Office into the California State University Lottery Education Fund, which serves as the depository account for CSU lottery funds. CSU accounting staff then must submit quarterly transfer requests to move these funds into the California State University Trust Fund. They must also submit similar quarterly forms to move the associated interest accrued from lottery revenues. From their funds are distributed to various State Universities for programs and uses that are consistent with the Lottery Act.
According to the CSU Chancellor’s Office, in recent years, annual CSU Lottery Fund receipts have averaged around $45 million per year. Approximately 80 percent of funds are allocated directly to campuses for instructionally related programs and activities. The remaining funds are allocated for CSU programs that assist student education, such as the Summer Arts, Pre-Doctoral, and Doctoral Incentive programs. Approximately 1.2 percent of lottery resources are used by the CSU Chancellor’s Office to administer lottery fund operations and reporting requirements. The CSU sets aside $5 million for reserves, to prepare for cash-flow variations and other year-to-year economic uncertainties that could impact future fund receipts.
The 2016-17 lottery budget for CSU is estimated to be $49.2 million; the allocation would be as follows:
$5 million | Set aside for cash-flow variation and fluctuations |
$39.5 million | $31.5 million for campus-based programs $8 million for increased financial aid for the Early Start program (in the form of fee waivers) |
$4 million | System-designated programs, including:
|
$607,000 | Administrative costs associated with the fund and system programs |
Purpose of this bill. According to the author, this bill will allow the State Controller's Office (SCO) to directly deposit lottery funds into the California State University Trust Fund. This will eliminate unnecessary administrative processes and streamline the accounting processes associated with utilizing the funds from the California State University Lottery Education Fund.
REGISTERED SUPPORT / OPPOSITION:
Support
Betty Yee, California State Controller
California State University
Opposition
None on File
Analysis Prepared by: Laura Metune / HIGHER ED. / (916) 319-3960
Date of Hearing: April 6, 2016
ASSEMBLY COMMITTEE ON GOVERNMENTAL ORGANIZATION
Adam Gray, Chair
ABPCA Bill Id:AB 2215 (
Author:Medina) – As Introduced Ver:February 18, 2016
SUBJECT: California State Lottery Act: California State University Lottery Education Fund: California State University Trust Fund
SUMMARY: Would require the Board of Trustees of the California State University to deposit funds received from the California State Lottery Education Fund in the California State University Trust Fund instead of the California State University Lottery Education Fund.
EXISTING LAW:
- The California State Lottery Act (Lottery Act or Act) of 1984, enacted by initiative, authorizes a California State Lottery and provides for its operation and administration by the California State Lottery Commission (Commission) and the Director of the California State Lottery, with certain limitations.
- Requires the Commission to establish the percentage of total annual revenues of the state lottery to be allocated to the benefit of public education at a level that maximizes the total net revenues allocated for the benefit of public education.
- Requires that no more than 13 percent of the total annual revenues be used to pay Lottery expenses and that those expenses include all costs incurred in the operation and administration of the Lottery and all costs resulting from any contracts entered into for the purchase or lease of goods and services required by the Lottery.
- Establishes the California State Lottery Education Fund and provides for direct payments from the fund to various entities, including the Board of Trustees of the California State University (trustees).
- Requires funds received by the trustees to be deposited in, and expended from, the California State University Lottery Education Fund or, at the discretion of the trustees, deposited in local trust accounts.
- Establishes the California State University Trust Fund and specifies its sources of revenue.
- Provides that all money received by the Fund shall augment the support appropriation to the California State University for the fiscal year to which the collections apply.
FISCAL EFFECT: Unknown
COMMENTS:
Purpose of the bill: According to the author, this bill will allow the State Controller's Office (SCO) to directly deposit lottery funds into the California State University Trust Fund. This will eliminate unnecessary administrative processes and streamline the accounting processes associated with utilizing the funds from the California State University Lottery Education Fund.
Background: State Lottery Act of 1984 (Act) was created by a ballot measure, Proposition 37, which was approved by 58 percent of voters on November 6, 1984. The Act gave the Lottery a clear mission: to provide supplemental funding for public schools and colleges. The Act specifies that the Lottery be operated and administered by a Commission appointed by the Governor. The Legislature has the authority to amend the Act if, by doing so, it furthers the purposes of the Act.
In April 2010, the Legislature passed Assembly Bill 142, which changed the Lottery’s funding formula to follow best practices. Those practices have helped lotteries throughout the nation increase sales and earn more money for their beneficiary. AB 142 limits administrative expenses to 13 percent of sales, while requiring that 87 percent of sales go back to the public in the form of prizes and contributions to education. The law gives the Lottery the flexibility to pay out a higher percentage of its revenues in prizes than it has in the past, but only if it does so in a way that increases the total amount of money that goes to public schools and colleges.
In fiscal year 2014/2015, the State Lottery contributed $1,391,101,826 to K-12, Community Colleges, CSU and UC campuses and several specialized schools. The funds were divided up by following percentages: K-12: 80% ($1,113,267,781); Community Colleges: 14.10% ($196,204,535); CSU: 3.54% ($49,308,817); UC System: 2.28% ($31,768,586); Public Colleges and Miscellaneous Educational Institutions: .04% ($552,107). Additionally, below is a breakdown of how every lottery dollar was spent for the 2014/2015 fiscal year:
• 63.4¢ prizes
• 24.6¢ operating income to education
• 6.9¢ retailer compensation
• 2.0¢ overhead
• 1.8¢ direct gaming costs
• 1.3¢ marketing costs
California State University Lottery Education Fund: Under current law, funds from the California State Lottery Education Fund are distributed quarterly by the State Controller’s Office into the California State University Lottery Education Fund, which serves as the depository account for CSU lottery funds. CSU accounting staff then must submit quarterly transfer requests to move these funds into the California State University Trust Fund. They must also submit similar quarterly forms to move the associated interest accrued from lottery revenues. From their funds are distributed to various State Universities for programs and uses that are consistent with the Lottery Act.
According to the CSU Chancellor’s Office, in recent years, annual CSU Lottery Fund receipts have averaged around $45 million per year. Approximately 80% of funds are allocated directly to campuses for instructionally related programs and activities. The remaining funds are allocated for CSU programs that assist student education, such as the Summer Arts, Pre-Doctoral, and Doctoral Incentive programs. Approximately 1.2 percent of lottery resources are used by the CSU Chancellor’s Office to administer lottery fund operations and reporting requirements. The CSU sets aside $5 million for reserves, to prepare for cash-flow variations and other year-to-year economic uncertainties that could impact future fund receipts.
The 2016-17 lottery budget for CSU is estimated to be $49.2 million; the allocation would be as follows:
$5 million | Set aside for cash-flow variation and fluctuations |
$39.5 million | $31.5 million for campus-based programs $8 million for increased financial aid for the Early Start program (in the form of fee waivers) |
$4 million | System-designated programs, including:
|
$607,000 | Administrative costs associated with the fund and system programs |
Double referral: Should AB 2215 pass the Assembly Committee on Governmental Organization on Wednesday, April 6, 2016, this bill will be referred to the Assembly Committee on Higher Education for further consideration.
Prior/Related Legislation: AB 142 (Hayashi), Chapter 13, Statutes of 2010. Modified the allocation formula of the Act of 1984, also known as Proposition 37. Repeals the modifications to the allocation formula if it is determined by the Controller that the amount of revenues allocated to the benefit of public education by the Lottery is less than what would have been allocated if the law were not changed, as specified.
AB 1654 (Budget Committee), Chapter 764, Statutes of 2008. Would have implemented a number of changes to the Lottery Act to "modernize" the Lottery if the voters would have approved Proposition 1C (which was placed on the ballot by SCA 12 (Perata), Resolution Chapter 143, Statutes of 2008, in May 2009. (The voters did not approve Proposition 1C.)
SB 1679 (Florez), 2007-2008 Legislative Session. Would have made a number of changes to enhance the performance of the Lottery. (Never heard in the Senate.)
SB 1011 (Florez), 2005-2006 Legislative Session. Would have required, among other things that at least 50% of multistate lottery revenues to be allocated to the public in the form of prizes, at least 42% must benefit public education, and no more than 8% to be allocated for Lottery expenses. (Died on the Assembly Floor).
REGISTERED SUPPORT / OPPOSITION:
Support
California State University, Board of Trustees (Sponsor)
Betty T. Yee, California State Controller
Opposition
None on file
Analysis Prepared by: Kenton Stanhope / G.O. / (916) 319-2531
Discussed in Hearing
5MIN
Senate Standing Committee on Business, Professions and Economic Development
Bill Co-Author(s):