California State Lottery.

The California State Lottery Act of 1984, an initiative measure approved by the voters at the November 6, 1984, statewide general election, authorizes a California State Lottery and provides for its operation and administration by the California State Lottery Commission. Existing law prohibits more than 13% of the total annual revenues of the lottery from being allocated for the payment of expenses of the lottery, which includes, among other things, the costs of advertising and promotion. 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 more than 16% of the total annual revenues shall be allocated for payment of expenses of the lottery, including advertising and promotion. Existing law authorizes the commission, as a promotional expense, to supplement the prize pool of a game upon its determination that a supplement will benefit the public purpose of the act. This bill would prohibit the commission from expending any revenues of the lottery on advertising or promotion for the lottery and would make conforming changes. Existing law requires the commission to ensure that the overall estimated odds of winning some prize or prizes in a particular lottery game are posted on all television and print advertising related to that game. This bill instead would require the commission to ensure that the overall estimated odds of winning some prize or prizes in a particular lottery game are posted at locations where lottery tickets for that game are sold. The California Constitution authorizes the Legislature to amend or repeal an initiative statute by another statute that becomes effective when approved by the electors. This bill would become effective only when submitted to, and approved by, the voters. The bill would require the Secretary of State to submit the bill for approval by the voters at a statewide general election.