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California State Lottery

California State Lottery
CALottLogo.svg
The California State Lottery logo as of 2008
Formation November 6, 1984
Type Lottery System
Headquarters Sacramento, California, United States
Website www.calottery.com

The California State Lottery, also known as the California Lottery, began on November 6, 1984, after California voters passed Proposition 37 (1984)|Proposition 37, the California State Lottery Act of 1984, authorizing the creation of a lottery. The first tickets were purchased on October 3, 1985.

The California State Lottery Act of 1984 was intended to provide more money to schools without imposing extra taxes. Accordingly, the Lottery was required to provide at least 34% of its revenues to public education, supplementing (not replacing) other funds provided by California. Another 50% of its revenues must be paid to the public in the form of prizes, making a mandated minimum of 84% of all funds that must be given back to the public in the form of prizes or funds for public education. The remainder, a maximum of 16%, was to be spent on administration, such as salaries and running the games.

On April 8, 2010, Governor Schwarzenegger signed into law Assembly Bill 142 (Hayashi, D-Hayward). Amending the Lottery Act, this bill reallocates Lottery revenues "so as to maximize the amount of funding allocated to public education." As an urgency statute, this bill took effect immediately. The new allocation increased to at least 87% the portion of Lottery revenue returned to the public, and correspondingly decreased to a maximum of 13% the amount spent on administration. It then specified that "not less than 50% of the total annual Lottery revenues, in an amount to be determined by the commission, be returned to the public in the form of prizes." This leaves "the commission to establish the percentage to be allocated to the benefit of public education at a level that maximizes the total net revenues allocated to the benefit of public education." It also imposed requirements "to ensure continued growth in Lottery net revenues allocated to public education", with annual procedures that would, "in any one of the first 5 full fiscal years after the enactment of this measure, ... provide for the repeal of the changes made by this measure on the following January 1, and the prior law to be restored", if those requirements were not then met. This bill follows the practice of "other large state lottery systems, including Texas, North Carolina, and Florida, which have shown an increase in revenue through similar changes."

The Lottery Act mandates a five-member commission, appointed by the governor, to "oversee the Lottery and the Director" and make quarterly reports "to the Governor, the Attorney General, the Controller, the Treasurer, and the Legislature." Annually the commission selects a chairperson. Regular meetings of the commission are held at least quarterly and are open to the public. On January 29, 1985, Gov. George Deukmejian appointed the first Lottery commissioners: William Johnston, Laverta Montgomery, John Price, Howard Varner, and Kennard Webster. Deukmejian appointed the first director, Mark Michalko, formerly Ohio Lottery legal counsel, in May 1985. On 12 March 2012, Governor Jerry Brown appointed Gregory J. Ahern to the Commission, who was also elected as Sheriff of Alameda County in 2006.


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