Bill Number: OK52RSB 462 Filed: 01-08-2009
Author: Lerblance
TATE OF OKLAHOMA
1 1st Session of the 52nd Legislature (2009)
2 SENATE BILL 462 By: Lerblance
3 AS INTRODUCED
4 An Act relating to amusements and sports; amending
5 Section 14, Chapter 58, O.S.L. 2003, as last amended
6 by Section 1, Chapter 389, O.S.L. 2008 (3A O.S. Supp.
7 2008, Section 713), which relates to the Oklahoma
8 Education Lottery Act; eliminating net proceeds
9 minimum requirement; providing an effective date; and
10 declaring an emergency.
11 BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
12 SECTION 1. AMENDATORY Section 14, Chapter 58, O.S.L.
13 2003, as last amended by Section 1, Chapter 389, O.S.L. 2008 (3A
14 O.S. Supp. 2008, Section 713), is amended to read as follows:
15 Section 713. A. All gross proceeds shall be the property
16 of the Oklahoma Lottery Commission. From its gross proceeds, the
17 Commission shall pay the operating expenses of the Commission. At
18 least forty-five percent (45%) of gross proceeds shall be made
19 available as prize money. However, the provisions of this
20 subsection shall be deemed not to create any lien, entitlement,
21 cause of action, or other private right, and any rights of holders
22 of tickets or shares shall be determined by the Commission in
23 setting the terms of its lottery or lotteries. [For each fiscal
24 year, net proceeds shall equal at least thirty-five percent (35%)
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1 of the gross proceeds. However, for the purpose of repaying
2 indebtedness issued pursuant to Section 732 of this title, for the
3 first two (2) full fiscal years and any partial first fiscal year
4 of the Commission, net proceeds need only equal at least thirty
5 percent (30%) of the gross proceeds.] All of the net proceeds
6 shall be transferred to the Oklahoma Education Lottery Trust Fund
7 as provided in subsection B of this section.
8 B. There is hereby created in the State Treasury a fund to
9 be designated the "Oklahoma Education Lottery Trust Fund". Except
10 as otherwise provided in subsections H and I of this section, on
11 or before the fifteenth day of each calendar quarter, the
12 Commission shall transfer to the State Treasurer, for credit to
13 the Oklahoma Education Lottery Trust Fund, the amount of all net
14 proceeds accruing during the preceding calendar quarter.
15 Expenditures from the fund shall be made upon warrants issued by
16 the State Treasurer against claims filed as prescribed by law with
17 the Director of State Finance for approval and payment.
18 Upon their deposit into the State Treasury, any monies
19 representing a deposit of net proceeds shall then become the
20 unencumbered property of this state, and neither the Commission
21 nor the board of trustees shall have the power to agree or
22 undertake otherwise. The monies shall be invested by the State
23 Treasurer in accordance with state investment practices. All
24 earnings attributable to such investments shall likewise be the
25 unencumbered property of the state and shall accrue to the credit
26 of the fund.
27 C. Monies in the Oklahoma Education Lottery Trust Fund
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1 shall only be appropriated as follows:
2 1. Forty-five percent (45%) for the following:
3 a. kindergarten through twelfth grade public education,
4 including but not limited to compensation and benefits for public
5 school teachers and support employees, and
6 b. early childhood development programs, which shall
7 include but not be limited to costs associated with
8 prekindergarten and full-day kindergarten programs;
9 2. Forty-five percent (45%) for the following:
10 a. tuition grants, loans and scholarships to citizens
11 of this state to enable such citizens to attend colleges and
12 universities located within this state, regardless of whether such
13 colleges and universities are owned or operated by the Oklahoma
14 State Regents for Higher Education, or to attend institutions
15 operated under the authority of the Oklahoma Department of Career
16 and Technology Education; provided such tuition grants, loans and
17 scholarships shall not be made to a citizen of this state to
18 attend a college or university which is not accredited by the
19 Oklahoma State Regents for Higher Education,
20 b. construction of educational facilities for
21 elementary school districts, independent school districts, the
22 Oklahoma State System of Higher Education, and career and
23 technology education,
24 c. capital outlay projects for elementary school
25 districts, independent school districts, the Oklahoma State System
26 of Higher Education, and career and technology education,
27 d. technology for public elementary school district,
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1 independent school district, state higher education, and career
2 and technology education facilities, which shall include but not
3 be limited to costs of providing to teachers at accredited public
4 institutions who teach levels kindergarten through twelfth grade,
5 personnel at technology centers under the authority of the
6 Oklahoma State Department of Career and Technology Education, and
7 professors and instructors within the Oklahoma State System of
8 Higher Education, the necessary training in the use and
9 application of computers and advanced electronic instructional
10 technology to implement interactive learning environments in the
11 classroom and to access the [state-wide] statewide distance
12 learning network and costs associated with repairing and
13 maintaining advanced electronic instructional technology,
14 e. endowed chairs for professors at institutions of
15 higher education operated by the Oklahoma State System of Higher
16 Education, and
17 f. programs and personnel of the Oklahoma School for
18 the Deaf and the Oklahoma School for the Blind;
19 3. Five percent (5%) to the School Consolidation and
20 Assistance Fund. When the total amount in the School
21 Consolidation and Assistance Fund from all sources equals Five
22 Million Dollars ($5,000,000.00), all monies appropriated pursuant
23 to this paragraph which would otherwise be deposited in the School
24 Consolidation and Assistance Fund in excess of Five Million
25 Dollars ($5,000,000.00) shall be allocated by the State Department
26 of Education to public schools based on the audited end-of-year
27 average daily membership in grades 8 through 12 during the
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1 preceding school year for the purpose of purchasing technology
2 equipment in order to conduct [on-line] online testing as
3 required by the Achieving Classroom Excellence Act of 2005. If at
4 any time the total amount in the School Consolidation and
5 Assistance Fund drops below Five Million Dollars ($5,000,000.00),
6 the monies appropriated pursuant to this paragraph shall be
7 deposited in the School Consolidation and Assistance Fund until
8 the Fund again reaches Five Million Dollars ($5,000,000); and
9 4. Five percent (5%) to the Teachers' Retirement System
10 Dedicated Revenue Revolving Fund.
11 D. The Legislature shall appropriate funds from the
12 Oklahoma Education Lottery Trust Fund only for the purposes
13 specified in subsection C of this section. Even when funds from
14 the trust fund are used for these purposes, the Legislature shall
15 not use funds from the trust fund to supplant or replace other
16 state funds supporting common education, higher education, or
17 career and technology education.
18 E. In order to ensure that the funds from the trust fund
19 are used to enhance and not supplant funding for education, the
20 State Board of Equalization shall examine and investigate
21 appropriations from the trust fund each year. At the meeting of
22 the State Board of Equalization held within five (5) days after
23 the monthly apportionment in February of each year, the State
24 Board of Equalization shall issue a finding and report which shall
25 state whether appropriations from the trust fund were used to
26 enhance or supplant education funding. If the State Board of
27 Equalization finds that education funding was supplanted by funds
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1 from the trust fund, the Board shall specify the amount by which
2 education funding was supplanted. In this event, the Legislature
3 shall not make any appropriations for the ensuing fiscal year
4 until an appropriation in that amount is made to replenish the
5 trust fund.
6 F. Except as otherwise provided by this subsection, no
7 deficiency in the Oklahoma Education Lottery Trust Fund shall be
8 replenished by reducing any nonlottery funds, including
9 specifically, but without limitation, the General Revenue Fund,
10 the Constitutional Reserve Fund or the Education Reform Revolving
11 Fund of the State Department of Education. No program or project
12 started specifically from lottery proceeds shall be continued from
13 the General Revenue Fund, the Constitutional Reserve Fund or the
14 Education Reform Revolving Fund of the State Department of
15 Education. Such programs must be adjusted or discontinued
16 according to available lottery proceeds unless the Legislature by
17 general law establishes eligibility requirements and appropriates
18 specific funds therefor. No surplus in the Oklahoma Education
19 Lottery Trust Fund shall be reduced or transferred to correct any
20 nonlottery deficiencies in sums available for general
21 appropriations. The provisions of this subsection shall not apply
22 to bonds or other obligations issued pursuant to or to the
23 repayment of bonds or other obligations issued pursuant to the
24 Oklahoma Higher Education Promise of Excellence Act of 2005.
25 G. There is hereby created in the State Treasury a
26 revolving fund to be designated the "Oklahoma Education Lottery
27 Revolving Fund". The fund shall be a continuing fund, not subject
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1 to fiscal year limitations, and shall consist of all monies
2 received by the Commission. The Commission shall make payments of
3 net proceeds from the fund to the Oklahoma Education Lottery Trust
4 Fund on or before the fifteenth day of each calendar quarter as
5 provided in subsection B of this section. All monies accruing to
6 the credit of the Oklahoma Education Lottery Revolving Fund are
7 hereby appropriated and may be budgeted and expended for the
8 payment of net proceeds, prizes, commissions to retailers,
9 administrative expenses and all other expenses arising out of the
10 operation of the education lottery, subject to the limitations
11 provided in the Oklahoma Education Lottery Act. Expenditures from
12 the fund shall be made upon warrants issued by the State Treasurer
13 against claims filed as prescribed by law with the Director of
14 State Finance for approval and payment.
15 The monies in the fund shall be invested by the State
16 Treasurer in accordance with state investment practices. All
17 earnings attributable to such investments shall likewise accrue to
18 the credit of the fund.
19 H. When appropriations from the Oklahoma Education Lottery
20 Trust Fund are made to common education pursuant to the provisions
21 of paragraph 1 of subsection C of this section, the appropriations
22 shall be made available on a monthly basis. In addition to the
23 provisions of subsection B of this section, the following process
24 shall be used to insure that the appropriations are made available
25 to common education in a timely manner:
26 1. Beginning in July of the fiscal year in which
27 appropriations are made to common education from the Oklahoma
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1 Education Lottery Trust Fund, the Commission, on or before the
2 ninth day of each month, shall transfer to the State Treasurer,
3 for credit to the Oklahoma Education Lottery Trust Fund, the
4 amount of net proceeds accruing during the preceding month equal
5 to the amount of total monthly collections due to common education
6 as required by paragraph 1 of subsection C of this section;
7 2. The Director of the Office of State Finance shall
8 allocate the transfers provided for in paragraph 1 of this
9 subsection to the State Department of Education on a monthly
10 basis, not to exceed one-twelfth (1/12) of the annual
11 apportionment for the fiscal year; and
12 3. The total amount of transfers to the Oklahoma Education
13 Lottery Trust Fund of net lottery proceeds made pursuant to this
14 subsection shall not exceed the total appropriations made to
15 common education from the Oklahoma Education Lottery Trust Fund
16 for the specific fiscal year.
17 I. When appropriations from the Oklahoma Education Lottery
18 Trust Fund are made to The Oklahoma State System of Higher
19 Education, the appropriations shall be made available to the
20 System on a monthly basis. In addition to the provisions of
21 subsection B of this section, the following process shall be used
22 to insure that the appropriations are made available to The
23 Oklahoma State System of Higher Education in a timely manner:
24 1. Beginning in July of the fiscal year in which
25 appropriations are made to The Oklahoma State System of Higher
26 Education from the Oklahoma Education Lottery Trust Fund, the
27 Commission, on or before the ninth day of each month, shall
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1 transfer to the State Treasurer, for credit to the Oklahoma
2 Education Lottery Trust Fund, the amount of net proceeds accruing
3 during the preceding month equal to the amount of total monthly
4 collections due to the Oklahoma State Regents for Higher Education
5 as required by paragraph 2 of subsection C of this section;
6 2. The Director of the Office of State Finance shall
7 allocate the transfers provided for in paragraph 1 of this
8 subsection to the Oklahoma State Regents for Higher Education on a
9 monthly basis, not to exceed one-twelfth (1/12) of the annual
10 apportionment for the fiscal year; and
11 3. The total amount of transfers to the Oklahoma Education
12 Lottery Trust Fund of net lottery proceeds made pursuant to this
13 subsection shall not exceed the total appropriations made to The
14 Oklahoma State System for Higher Education from the Oklahoma
15 Education Lottery Trust Fund for the specific fiscal year.
16 SECTION 2. This act shall become effective July 1, 2009.
17 SECTION 3. It being immediately necessary for the
18 preservation of the public peace, health and safety, an emergency
19 is hereby declared to exist, by reason whereof this act shall take
20 effect and be in full force from and after its passage and
21 approval.
22 52-1-599 ARE 1/8/2009 4:35:05 PM
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