Education finance: Computer Occupations and Developing Education (CODE) Act: State Lottery Fund.

(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 requires revenues of the state lottery to be allocated so as to maximize the amount of funding allocated to public education, and requires that not less than a designated percentage of the total annual revenues from the sale of state lottery tickets or shares be returned to the public in the form of prizes and net revenues to benefit public education, and that no more than a designated percentage of those revenues be used for expenses of the lottery. The act establishes the State Lottery Fund, a continuously appropriated fund for carrying out the purposes of the act. A provision of the California State Lottery Act requires, to ensure continued growth in lottery net revenues allocated to public education, the commission to require that the net lottery revenues allocated to public schools are at least as much as were allocated on average in the prior 5 fiscal years, and increased in proportion to any upward increases in lottery net revenues. This bill would change the act to require that the net lottery revenues allocated pursuant to this provision be at least as much as were allocated on average in the prior 5 fiscal years, or at least as much as were allocated for the 2018–19 fiscal year, whichever amount is greater. (2) Existing law establishes the State Department of Education, under the administration of the Superintendent of Public Instruction, and assigns the department numerous duties relating to the governance and funding of the public elementary and secondary schools in this state. Existing law establishes the State Board of Education for, among other things, the adoption of rules and regulations not inconsistent with the laws of this state for its own government, for the government of its appointees and employees, and for the government of the day and evening elementary schools, the day and evening secondary schools, and the technical and vocational schools of the state, and for the determination of all questions of policy within its powers. This bill would enact the Computer Occupations and Developing Education (CODE) Act, pursuant to which the State Department of Education, in consultation with the State Board of Education, would administer a grant program promoting the teaching of computer science courses in public secondary schools. The bill would authorize the department to adopt forms, standards, and procedures for the solicitation and evaluation of grant applications from local educational agencies, as defined. Under the bill, the grants allocated by the department to local educational agencies would be used for purposes including, but not necessarily limited to, obtaining resources for the offering of computer science courses and related teacher professional development, as specified. The bill would authorize these grants to be made for the 2020–21, 2021–22, and 2022–23 school years. The bill would require the transfer of between $50,000,000 and $100,000,000 from the State Lottery Fund to the department for purposes of the grant program established by the bill. By requiring this transfer, the bill would change the purposes for which the funds of a continuously appropriated fund may be appropriated, and thereby would make an appropriation. The bill would require local educational agencies receiving grants under the bill to submit reports to the department as prescribed, and would require the department to submit a written report to the Legislature and the Governor that would include the department's findings and recommendations relating to the grant program and additional information as specified. (3) 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 23 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.