Attorney General No.


Secretary of State No.



LOTTERIES. INITIATIVE CONSTITUTIONAL AMENDMENT. Amends California Constitution to require legislature to provide for a state-operated lottery in which net proceeds are allocated exclusively for the benefit of Senior Programs, Youth Scholarship Programs, and Veteran Programs. Defines these programs. Establishes ex officio committee responsible for allocation of specified percentages of net lottery proceeds to each program. Requires legislative appropriations to these programs, including lottery proceeds, of no less than 1980-81 appropriations plus cost of living increases. Requires establishment of Lottery Commission funded from lottery proceeds to administer the lottery. Specifies percentages of lottery gross proceeds usable for prize and administration expenses. Summary of estimate by Legislative Analyst and Director of Finance of fiscal impact on state and local governments: There would be no net increase in state General Fund revenues from adoption of this measure. There would be reductions in existing state expenditures because lottery revenues would replace existing state support for three specified programs. If net lottery revenues exceed total expenditures of these three programs, additional revenues would be used to increase their level of support. Future expenditure increases, tied to the growth in the Consumer Price Index, are mandated for the three programs. If annual growth in lottery revenues is sufficient to fund these expenditure increases, there would be no net impact on General Fund expenditures. If annual growth in lottery revenues falls below the mandated increases in expenditures, this measure would result in unknown increases in state General Fund costs.


Mr. Kenneth Robbins, 700 - 36Th Street, Sacramento, Ca 95816



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