Bill Text: OH HB41 | 2009-2010 | 128th General Assembly | Introduced

---

Bill Title: To require that a portion of lottery profits be distributed annually on a per pupil basis to public and chartered nonpublic schools.

Spectrum: Moderate Partisan Bill (Democrat 9-2)

Status: (Introduced - Dead) 2009-02-24 - To Education [HB41 Detail]

Download: Ohio-2009-HB41-Introduced.html

---

As Introduced

128th General Assembly Regular Session 2009-2010

H. B. No. 41

Representative Gerberry 

Cosponsors: Representatives Hagan, Dyer, Harris, Newcomb, Okey, Yuko, Dodd, Stebelton, Otterman, Williams, S. 

---

A BILL

To amend section 3770.06 and to enact section

1

3317.0212 of the Revised Code to require that a

2

portion of lottery profits be distributed annually

3

on a per pupil basis to public and chartered

4

nonpublic schools.

5

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:

Section 1. That section 3770.06 be amended and section	6
3317.0212 of the Revised Code be enacted to read as follows:	7

Sec. 3317.0212. (A) As used in this section:

8

(1) "Chartered nonpublic school" has the same meaning as in	9
section 3310.01 of the Revised Code.	10

(2) "Per pupil distribution amount" means the excess lottery	11
profits amount, determined under division (B)(2)(b) of section	12
3770.06 of the Revised Code, divided by the sum of the student	13
counts for all entities for which student counts are prescribed by	14
division (A)(3) of this section.	15

(3) "Student count" means:

16

(a) For a city, exempted village, or local school district,	17
the district's formula ADM for the previous fiscal year, minus the	18
following:	19

(i) The number of students included in the district's formula	20
ADM who were enrolled in a community school, as certified under	21
division (A)(2)(a) of section 3317.03 of the Revised Code and	22
verified by the superintendent of public instruction;	23

(ii) The number of students included in the district's	24
formula ADM who were enrolled in an alternative school under the	25
pilot project scholarship program, as certified under division	26
(A)(2)(b) of that section and verified by the superintendent of	27
public instruction;	28

(iii) The number of students included in the district's	29
formula ADM who were enrolled in a chartered nonpublic school	30
under the educational choice scholarship pilot program, as	31
certified under division (A)(2)(g) of that section and verified by	32
the superintendent of public instruction;	33

(iv) The number of students included in the district's	34
formula ADM who were enrolled in an alternative public provider or	35
registered private provider under the autism scholarship program,	36
as certified under division (A)(2)(h) of that section and verified	37
by the superintendent of public instruction;	38

(v) The number of students included in the district's formula	39
ADM who were enrolled in a science, technology, engineering, and	40
mathematics school, as certified under division (A)(2)(i) of that	41
section and verified by the superintendent of public instruction.	42

(b) For a joint vocational school district, the district's	43
formula ADM for the previous fiscal year;	44

(c) For a community school established under Chapter 3314. of	45
the Revised Code, the number of students reported for the previous	46
fiscal year under divisions (B)(2)(a) and (b) of section 3314.08	47
of the Revised Code, minus the number of the school's students who	48
also were enrolled in a joint vocational school district as	49
certified under division (D)(1) of section 3317.03 of the Revised	50
Code, all on an FTE basis and as verified by the superintendent of	51
public instruction;	52

(d) For a STEM school established under Chapter 3326. of the	53
Revised Code, the number of students reported for the previous	54
fiscal year under division (A) of section 3326.32 of the Revised	55
Code, minus the number of the school's students who also were	56
enrolled in a joint vocational school district as certified under	57
division (D)(1) of section 3317.03 of the Revised Code, all on an	58
FTE basis and as verified by the superintendent of public	59
instruction;	60

(e) For a chartered nonpublic school, the number of students	61
enrolled in the school during the previous fiscal year as reported	62
to the department of education in the manner and by the deadline	63
established by the department of education for purposes of this	64
section. A chartered nonpublic school's "student count" shall be	65
determined on an FTE basis and shall include students enrolled in	66
the school with a scholarship under sections 3313.974 to 3313.979	67
or Chapter 3310. of the Revised Code.	68

(B) On or before August 1, 2009, and on or before the first	69
day of August of each fiscal year thereafter, the department of	70
education shall pay to each entity for which a separate student	71
count is prescribed by division (A)(3)(a), (b), (c), (d), or (e)	72
of this section an amount equal to the entity's student count	73
multiplied by the per pupil distribution amount. The amount paid	74
to an entity under this section is in addition to any other amount	75
calculated and paid to the entity under this chapter or Chapter	76
3310., 3313., 3314., or 3326. of the Revised Code.	77

(C) The amount paid to an entity under this section may be	78
used for any lawful purpose, except for the payment of salaries	79
and benefits, in support of the entity's elementary, secondary,	80
vocational, or special education programs.	81

Sec. 3770.06.  (A) There is hereby created the state lottery	82
gross revenue fund, which shall be in the custody of the treasurer	83
of state but shall not be part of the state treasury. All gross	84
revenues received from sales of lottery tickets, fines, fees, and	85
related proceeds in connection with the statewide lottery and all	86
gross proceeds from statewide joint lottery games shall be	87
deposited into the fund. The treasurer of state shall invest any	88
portion of the fund not needed for immediate use in the same	89
manner as, and subject to all provisions of law with respect to	90
the investment of, state funds. The treasurer of state shall	91
disburse money from the fund on order of the director of the state	92
lottery commission or the director's designee.	93

Except for gross proceeds from statewide joint lottery games,	94
all revenues of the state lottery gross revenue fund that are not	95
paid to holders of winning lottery tickets, that are not required	96
to meet short-term prize liabilities, that are not credited to	97
lottery sales agents in the form of bonuses, commissions, or	98
reimbursements, that are not paid to financial institutions to	99
reimburse those institutions for sales agent nonsufficient funds,	100
and that are collected from sales agents for remittance to	101
insurers under contract to provide sales agent bonding services	102
shall be transferred to the state lottery fund, which is hereby	103
created in the state treasury. In addition, all revenues of the	104
state lottery gross revenue fund that represent the gross proceeds	105
from the statewide joint lottery games and that are not paid to	106
holders of winning lottery tickets, that are not required to meet	107
short-term prize liabilities, that are not credited to lottery	108
sales agents in the form of bonuses, commissions, or	109
reimbursements, and that are not necessary to cover operating	110
expenses associated with those games or to otherwise comply with	111
the agreements signed by the governor that the director enters	112
into under division (J) of section 3770.02 of the Revised Code or	113
the rules the commission adopts under division (B)(5) of section	114
3770.03 of the Revised Code shall be transferred to the state	115
lottery fund. All investment earnings of the fund shall be	116
credited to the fund. Moneys shall be disbursed from the fund	117
pursuant to vouchers approved by the director. Total disbursements	118
for monetary prize awards to holders of winning lottery tickets in	119
connection with the statewide lottery and purchases of goods and	120
services awarded as prizes to holders of winning lottery tickets	121
shall be of an amount equal to at least fifty per cent of the	122
total revenue accruing from the sale of lottery tickets.	123

(B)(1) Pursuant to Section 6 of Article XV, Ohio	124
Constitution, there is hereby established in the state treasury	125
the lottery profits education fund. Whenever, in the judgment of	126
the director of budget and management, the amount to the credit of	127
the state lottery fund that does not represent proceeds from	128
statewide joint lottery games is in excess of that needed to meet	129
the maturing obligations of the commission and as working capital	130
for its further operations, the director shall transfer the excess	131
to the lottery profits education fund in connection with the	132
statewide lottery. In addition, whenever, in the judgment of the	133
director of budget and management, the amount to the credit of	134
the state lottery fund that represents proceeds from statewide	135
joint lottery games equals the entire net proceeds of those games	136
as described in division (B)(5) of section 3770.03 of the Revised	137
Code and the rules adopted under that division, the director shall	138
transfer those proceeds to the lottery profits education fund.	139
There shall also be credited to the fund any repayments of moneys	140
loaned from the educational excellence investment fund. Investment	141
earnings of the lottery profits education fund shall be credited	142
to the fund.	143

TheSubject to division (B)(2) of this section, the lottery	144
profits education fund shall be used solely for the support of	145
elementary, secondary, vocational, and special education programs	146
as determined in appropriations made by the general assembly, or	147
as provided in applicable bond proceedings for the payment of debt	148
service on obligations issued to pay costs of capital facilities,	149
including those for a system of common schools throughout the	150
state pursuant to section 2n of Article VIII, Ohio Constitution.	151
When determining the availability of money in the lottery profits	152
education fund, the director of budget and management may consider	153
all balances and estimated revenues of the fund.	154

(2)(a) As used in this division, "base lottery profits	155
amount" means the total amount appropriated from the lottery	156
profits education fund group for foundation funding for fiscal	157
year 2009.	158

(b) On or before July 15, 2009, and on or before the	159
fifteenth day of July of each fiscal year thereafter, the director	160
of budget and management shall certify to the superintendent of	161
public instruction the amount by which lottery profit transfers	162
into the lottery profits education fund during the previous fiscal	163
year exceeded the sum of (i) the base lottery profits amount plus	164
(ii) the amount paid from the lottery profits education fund	165
during the previous fiscal year for debt service on obligations	166
issued to pay costs of capital facilities, including those for a	167
system of common schools throughout the state pursuant to section	168
2n of Article VIII, Ohio Constitution. That excess amount is the	169
"excess lottery profits amount" that is available for distribution	170
in the current fiscal year. The department of education shall	171
distribute that excess lottery profits amount during the current	172
fiscal year in accordance with section 3317.0212 of the Revised	173
Code.	174

(C) There is hereby established in the state treasury the	175
deferred prizes trust fund. With the approval of the director of	176
budget and management, an amount sufficient to fund annuity prizes	177
shall be transferred from the state lottery fund and credited to	178
the trust fund. The treasurer of state shall credit all earnings	179
arising from investments purchased under this division to the	180
trust fund. Within sixty days after the end of each fiscal year,	181
the treasurer of state shall certify to the director of budget and	182
management whether the actuarial amount of the trust fund is	183
sufficient over the fund's life for continued funding of all	184
remaining deferred prize liabilities as of the last day of the	185
fiscal year just ended. Also, within that sixty days, the director	186
of budget and management shall certify the amount of investment	187
earnings necessary to have been credited to the trust fund during	188
the fiscal year just ending to provide for such continued funding	189
of deferred prizes. Any earnings credited in excess of the latter	190
certified amount shall be transferred to the lottery profits	191
education fund.	192

To provide all or a part of the amounts necessary to fund	193
deferred prizes awarded by the commission in connection with the	194
statewide lottery, the treasurer of state, in consultation with	195
the commission, may invest moneys contained in the deferred prizes	196
trust fund which represents proceeds from the statewide lottery in	197
obligations of the type permitted for the investment of state	198
funds but whose maturities are thirty years or less.	199
Notwithstanding the requirements of any other section of the	200
Revised Code, to provide all or part of the amounts necessary to	201
fund deferred prizes awarded by the commission in connection with	202
statewide joint lottery games, the treasurer of state, in	203
consultation with the commission, may invest moneys in the trust	204
fund which represent proceeds derived from the statewide joint	205
lottery games in accordance with the rules the commission adopts	206
under division (B)(5) of section 3770.03 of the Revised Code.	207
Investments of the trust fund are not subject to the provisions of	208
division (A)(10) of section 135.143 of the Revised Code limiting	209
to twenty-five per cent the amount of the state's total average	210
portfolio that may be invested in debt interests and limiting to	211
one-half of one per cent the amount that may be invested in debt	212
interests of a single issuer.	213

All purchases made under this division shall be effected on a	214
delivery versus payment method and shall be in the custody of the	215
treasurer of state.	216

The treasurer of state may retain an investment advisor, if	217
necessary. The commission shall pay any costs incurred by the	218
treasurer of state in retaining an investment advisor.	219

(D) The auditor of state shall conduct annual audits of all	220
funds and any other audits as the auditor of state or the general	221
assembly considers necessary. The auditor of state may examine all	222
records, files, and other documents of the commission, and records	223
of lottery sales agents that pertain to their activities as	224
agents, for purposes of conducting authorized audits.	225

The state lottery commission shall establish an internal	226
audit program before the beginning of each fiscal year, subject to	227
the approval of the auditor of state. At the end of each fiscal	228
year, the commission shall prepare and submit an annual report to	229
the auditor of state for the auditor of state's review and	230
approval, specifying the internal audit work completed by the end	231
of that fiscal year and reporting on compliance with the annual	232
internal audit program. The form and content of the report shall	233
be prescribed by the auditor of state under division (C) of	234
section 117.20 of the Revised Code.	235

(E) Whenever, in the judgment of the director of budget and	236
management, an amount of net state lottery proceeds is necessary	237
to be applied to the payment of debt service on obligations, all	238
as defined in sections 151.01 and 151.03 of the Revised Code, the	239
director shall transfer that amount directly from the state	240
lottery fund or from the lottery profits education fund to the	241
bond service fund defined in those sections. The provisions of	242
this division are subject to any prior pledges or obligation of	243
those amounts to the payment of bond service charges as defined in	244
division (C) of section 3318.21 of the Revised Code, as referred	245
to in division (B) of this section.	246

Section 2.  That existing section 3770.06 of the Revised Code	247
is hereby repealed.	248