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SB-1442 California State Lottery.(2019-2020)

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Date Published: 03/25/2020 09:00 PM
SB1442:v98#DOCUMENT

Amended  IN  Senate  March 25, 2020

CALIFORNIA LEGISLATURE— 2019–2020 REGULAR SESSION

Senate Bill
No. 1442


Introduced by Senator Chang

February 21, 2020


An act to amend Section 5253 of the Business and Professions Code, relating to professions and vocations. add Sections 8880.43.1, 8880.45.1, and 8880.56.1 to the Government Code, relating to the California State Lottery.


LEGISLATIVE COUNSEL'S DIGEST


SB 1442, as amended, Chang. Outdoor advertising. California State Lottery.
The California State Lottery Act of 1984 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. Existing law requires that not less than 87% of the total annual revenues of the state lottery be returned to the public in the form of prizes and net revenues to benefit public education, as specified, and requires at least 50% of annual lottery revenues to be returned to the public in the form of prizes. Existing law, to become operative following notification from the Controller to the Legislature and the Governor that certain events have occurred, changes the revenue allocation formula so that not less than 84% of the total annual revenues of the state lottery be returned to the public in the form of prizes and net revenues to benefit public education, as specified, and requires 50% of the total annual revenues to be returned to the public in the form of prizes.
This bill would require the director, on or before August 1, 2021, to conduct a study to determine the optimal prize payout rate to maximize the amount of funding allocated to public education each year by the lottery and would require the director to recalculate the optimal prize payout rate at least once every five years. The bill would require the commission, commencing with the 2022–23 fiscal year, and consistent with the above formula, to use the optimal prize payout rate to set the lottery’s budget each fiscal year.
Existing law requires the director, after the first full year of lottery ticket sales to the public, and from time to time thereafter, to engage an independent firm experienced in the analysis of advertising, promotion, public relations, incentives, and other aspects of communications to conduct a special study of the effectiveness of those communication activities and make recommendations to the commission on the future conduct and future rate of expenditure for those activities.
This bill would require the director to annually demonstrate and document a positive return on investment for any advertising programs that award free tickets to the public, as specified.
Existing law authorizes the director to purchase or lease goods and services as are necessary for effectuating the purposes of the lottery act. 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 require the commission, on or before August 1, 2021, to develop procurement procedures that explain how the commission determines which contracts for goods and services are exempt from competitive bidding and to make the procedures publicly available on its internet website.

Existing law, the Outdoor Advertising Act, requires a person to secure a written permit from the Director of Transportation or the director’s authorized agent before placing an advertising display adjacent to an interstate highway or primary highway, and requires a person desiring a permit to file an application with the director or the director’s authorized agent. The act requires a person to have a license from the director before engaging in, or carrying on, the business or occupation of outdoor advertising, and requires the application for a license to be made on a form furnished by the director. The act requires the director to furnish requisite forms for those applications, licenses, and permits.

This bill would make a nonsubstantive change to the provision requiring the director to furnish those requisite forms.

Vote: MAJORITY   Appropriation: NO   Fiscal Committee: NOYES   Local Program: NO  

The people of the State of California do enact as follows:


SECTION 1.

 Section 8880.43.1 is added to the Government Code, to read:

8880.43.1.
 (a) On or before August 1, 2021, the director shall conduct a study to determine the optimal prize payout rate to maximize the amount of funding allocated to public education each year by the lottery. The director shall recalculate the optimal prize payout rate at least once every five years.
(b) Commencing with the 2022–23 fiscal year, consistent with subdivision (a) of Section 8880.4, the commission shall use the optimal prize payout rate to set the lottery’s budget each fiscal year.

SEC. 2.

 Section 8880.45.1 is added to the Government Code, to read:

8880.45.1.
 The director shall annually demonstrate and document a positive return on investment for any advertising programs that award free tickets to the public. For purposes of this section, a return on investment may include, but is not limited to, brand strength, customer acquisition, ticket sales, repeat purchase rates, and profits.

SEC. 3.

 Section 8880.56.1 is added to the Government Code, to read:

8880.56.1.
 On or before August 1, 2021, the commission shall develop procurement procedures that explain how the commission determines which contracts for goods and services are exempt from competitive bidding and shall make the procedures publicly available on its internet website.

SECTION 1.Section 5253 of the Business and Professions Code is amended to read:
5253.

The director shall furnish requisite forms for applications, licenses, and permits provided for in this chapter and may appoint a representative or agent in each of the counties throughout the state for the purpose of issuing the licenses and permits and collecting fees therefor as provided in this chapter. The agent or representative, in the discretion of the director, may be the county clerk in each county.

In the event of the appointment of the county clerk in any county by the director, the county clerk shall so act. Upon the issuance of any such license or permit by the authorized agent of the director, the agent shall immediately forward a copy thereof to the director.