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 2

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, 3

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 4

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 5

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 6

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 7

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 8

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 23 Req. No. \*Req. No.*\Page 6 24 Req. No. 599Page 1 9