| Sec. 3770.06. (A) There is hereby created the state lottery | 7 |
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gross revenue fund, which shall be in the custody of the treasurer | 8 |
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of state but shall not be part of the state treasury. All gross | 9 |
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revenues received from sales of lottery tickets, fines, fees, and | 10 |
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related proceeds in connection with the statewide lottery and all | 11 |
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gross proceeds from statewide joint lottery games shall be | 12 |
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deposited into the fund. The treasurer of state shall invest any | 13 |
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portion of the fund not needed for immediate use in the same | 14 |
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manner as, and subject to all provisions of law with respect to | 15 |
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the investment of, state funds. The treasurer of state shall | 16 |
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disburse money from the fund on order of the director of the state | 17 |
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lottery commission or the director's designee. | 18 |
| Except for gross proceeds from statewide joint lottery games, | 19 |
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all revenues of the state lottery gross revenue fund that are not | 20 |
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paid to holders of winning lottery tickets, that are not required | 21 |
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to meet short-term prize liabilities, that are not credited to | 22 |
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lottery sales agents in the form of bonuses, commissions, or | 23 |
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reimbursements, that are not paid to financial institutions to | 24 |
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reimburse those institutions for sales agent nonsufficient funds, | 25 |
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and that are collected from sales agents for remittance to | 26 |
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insurers under contract to provide sales agent bonding services | 27 |
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shall be transferred to the state lottery fund, which is hereby | 28 |
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created in the state treasury. In addition, all revenues of the | 29 |
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state lottery gross revenue fund that represent the gross proceeds | 30 |
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from the statewide joint lottery games and that are not paid to | 31 |
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holders of winning lottery tickets, that are not required to meet | 32 |
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short-term prize liabilities, that are not credited to lottery | 33 |
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sales agents in the form of bonuses, commissions, or | 34 |
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reimbursements, and that are not necessary to cover operating | 35 |
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expenses associated with those games or to otherwise comply with | 36 |
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the agreements signed by the governor that the director enters | 37 |
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into under division (J) of section 3770.02 of the Revised Code or | 38 |
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the rules the commission adopts under division (B)(5) of section | 39 |
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3770.03 of the Revised Code shall be transferred to the state | 40 |
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lottery fund. All investment earnings of the fund shall be | 41 |
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credited to the fund. Moneys shall be disbursed from the fund | 42 |
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pursuant to vouchers approved by the director. Total disbursements | 43 |
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for monetary prize awards to holders of winning lottery tickets in | 44 |
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connection with the statewide lottery and purchases of goods and | 45 |
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services awarded as prizes to holders of winning lottery tickets | 46 |
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shall be of an amount equal to at least fifty per cent of the | 47 |
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total revenue accruing from the sale of lottery tickets. | 48 |
| (B)(1) Pursuant to Section 6 of Article XV, Ohio | 49 |
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Constitution, there is hereby established in the state treasury | 50 |
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the lottery profits education fund. Whenever, in the judgment of | 51 |
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the director of the state lottery commission, the amount to the | 52 |
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credit of the state lottery fund that does not represent proceeds | 53 |
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from statewide joint lottery games is in excess of that needed to | 54 |
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meet the maturing obligations of the commission and as working | 55 |
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capital for its further operations, the director of the state | 56 |
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lottery commission shall recommend the amount of the excess to be | 57 |
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transferred to the lottery profits education fund, and the | 58 |
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director of budget and management may transfer the excess to the | 59 |
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lottery profits education fund in connection with the statewide | 60 |
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lottery. In addition, whenever, in the judgment of the director of | 61 |
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the state lottery commission, the amount to the credit of the | 62 |
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state lottery fund that represents proceeds from statewide joint | 63 |
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lottery games equals the entire net proceeds of those games as | 64 |
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described in division (B)(5) of section 3770.03 of the Revised | 65 |
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Code and the rules adopted under that division, the director of | 66 |
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the state lottery commission shall recommend the amount of the | 67 |
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proceeds to be transferred to the lottery profits education fund, | 68 |
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and the director of budget and management may transfer those | 69 |
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proceeds to the lottery profits education fund. Investment | 70 |
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earnings of the lottery profits education fund shall be credited | 71 |
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to the fund. | 72 |
| The lottery profits education fund shall be used solely for | 73 |
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the support of elementary, secondary, vocational, and special | 74 |
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education programs as determined in appropriations made by the | 75 |
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general assembly, or as provided in applicable bond proceedings | 76 |
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for the payment of debt service on obligations issued to pay costs | 77 |
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of capital facilities, including those for a system of common | 78 |
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schools throughout the state pursuant to section 2n of Article | 79 |
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VIII, Ohio Constitution. When determining the availability of | 80 |
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money in the lottery profits education fund, the director of | 81 |
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budget and management may consider all balances and estimated | 82 |
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revenues of the fund. | 83 |
| The director of the state lottery commission shall prepare an | 105 |
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annual report of the amounts certified to the director under this | 106 |
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section, and shall submit the report to the governor, the speaker | 107 |
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and minority leader of the house of representatives, and the | 108 |
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president and minority leader of the senate. The director also | 109 |
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shall cause the report to be posted on all of the commission's | 110 |
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public internet web sites. All reports shall be retained and | 111 |
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archived as required under Chapter 149. of the Revised Code. | 112 |
| (C) There is hereby established in the state treasury the | 113 |
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deferred prizes trust fund. With the approval of the director of | 114 |
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budget and management, an amount sufficient to fund annuity prizes | 115 |
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shall be transferred from the state lottery fund and credited to | 116 |
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the trust fund. The treasurer of state shall credit all earnings | 117 |
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arising from investments purchased under this division to the | 118 |
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trust fund. Within sixty days after the end of each fiscal year, | 119 |
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the treasurer of state shall certify to the director of budget and | 120 |
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management whether the actuarial amount of the trust fund is | 121 |
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sufficient over the fund's life for continued funding of all | 122 |
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remaining deferred prize liabilities as of the last day of the | 123 |
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fiscal year just ended. Also, within that sixty days, the director | 124 |
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of budget and management shall certify the amount of investment | 125 |
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earnings necessary to have been credited to the trust fund during | 126 |
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the fiscal year just ending to provide for such continued funding | 127 |
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of deferred prizes. Any earnings credited in excess of the latter | 128 |
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certified amount shall be transferred to the lottery profits | 129 |
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education fund. | 130 |
| To provide all or a part of the amounts necessary to fund | 131 |
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deferred prizes awarded by the commission in connection with the | 132 |
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statewide lottery, the treasurer of state, in consultation with | 133 |
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the commission, may invest moneys contained in the deferred prizes | 134 |
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trust fund which represents proceeds from the statewide lottery in | 135 |
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obligations of the type permitted for the investment of state | 136 |
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funds but whose maturities are thirty years or less. | 137 |
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Notwithstanding the requirements of any other section of the | 138 |
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Revised Code, to provide all or part of the amounts necessary to | 139 |
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fund deferred prizes awarded by the commission in connection with | 140 |
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statewide joint lottery games, the treasurer of state, in | 141 |
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consultation with the commission, may invest moneys in the trust | 142 |
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fund which represent proceeds derived from the statewide joint | 143 |
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lottery games in accordance with the rules the commission adopts | 144 |
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under division (B)(5) of section 3770.03 of the Revised Code. | 145 |
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Investments of the trust fund are not subject to the provisions of | 146 |
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division (A)(10) of section 135.143 of the Revised Code limiting | 147 |
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to twenty-five per cent the amount of the state's total average | 148 |
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portfolio that may be invested in debt interests and limiting to | 149 |
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one-half of one per cent the amount that may be invested in debt | 150 |
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interests of a single issuer. | 151 |
| The state lottery commission shall establish an internal | 164 |
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audit program before the beginning of each fiscal year, subject to | 165 |
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the approval of the auditor of state. At the end of each fiscal | 166 |
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year, the commission shall prepare and submit an annual report to | 167 |
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the auditor of state for the auditor of state's review and | 168 |
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approval, specifying the internal audit work completed by the end | 169 |
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of that fiscal year and reporting on compliance with the annual | 170 |
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internal audit program. The form and content of the report shall | 171 |
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be prescribed by the auditor of state under division (C) of | 172 |
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section 117.20 of the Revised Code. | 173 |
| (E) Whenever, in the judgment of the director of budget and | 174 |
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management, an amount of net state lottery proceeds is necessary | 175 |
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to be applied to the payment of debt service on obligations, all | 176 |
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as defined in sections 151.01 and 151.03 of the Revised Code, the | 177 |
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director shall transfer that amount directly from the state | 178 |
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lottery fund or from the lottery profits education fund to the | 179 |
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bond service fund defined in those sections. The provisions of | 180 |
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this division are subject to any prior pledges or obligation of | 181 |
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those amounts to the payment of bond service charges as defined in | 182 |
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division (C) of section 3318.21 of the Revised Code, as referred | 183 |
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to in division (B) of this section. | 184 |
