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2008 SESSION
082967288Patrons-- Obenshain, Blevins, Cuccinelli, Hurt, Martin, McDougle, Newman, Norment, Quayle, Ruff, Smith, Stosch, Stuart, Vogel, Wagner, Wampler and Watkins
Be it enacted by the General Assembly of Virginia:
1. That §§ 58.1-4022 and 58.1-4022.1 of the Code of Virginia are amended and reenacted as follows:
§ 58.1-4022. State Lottery Fund.
A. All moneys received from the sale of lottery tickets or shares, less payment for prizes and compensation of agents as authorized by regulation and any other revenues received under this chapter, shall be placed in a special fund known as the "State Lottery Fund." Notwithstanding any other provisions of law, interest earned from moneys in the State Lottery Fund shall accrue to the benefit of such Fund.
B. The total costs for the operation and administration of the lottery shall be funded from the State Lottery Fund and shall be in such amount as provided in the general appropriation act. Appropriations to the Department during any fiscal year beginning on and after July 1, 1989, exclusive of agent compensation, shall at no time exceed ten percent of the total annual estimated gross revenues to be generated from lottery sales. However, should it be anticipated at any time by the Director that such operational and administrative costs for a fiscal year will exceed the limitation provided herein, the Director shall immediately report such information to the Board, the Governor and the Chairmen of Senate Finance and House Appropriations Committees. From the moneys in the Fund, the Comptroller shall establish a special reserve fund in such amount as shall be provided by regulation of the Department for (i) operation of the lottery, (ii) use if the game's pay-out liabilities exceed its cash on hand, or (iii) enhancement of the prize pool with income derived from lending securities held for payment of prize installments, which lending of securities shall be conducted in accordance with lending programs approved by the Department of the Treasury.
C. The Comptroller shall transfer to the Lottery Proceeds Fund
established pursuant to § 58.1-4022.1, less the special reserve fund, on a
biweekly basis the audited balances of the State Lottery
Fund at the close of each fiscal year that
remain after payment of the costs to operate and
administer the lottery as
provided in this chapter. Moneys
transferred or deposited into the Lottery Proceeds Fund shall not be commingled
with any other funds or assets. Moneys in the Lottery Proceeds Fund shall be
paid from the Fund to counties, cities, and towns, and the school divisions
thereof, by check (or electronic funds transfer) issued by the State Treasurer
on warrant of the Superintendent of Public Education, and such
moneys shall be paid in accordance with the time frame set
forth in the general appropriation act. The Auditor of Public
Accounts shall perform such audits as are necessary for the purpose
of effectuating the transfers and
deposits described in this subsection. The
transfer for each year shall be made in two parts: (i) on or before June 30,
the Comptroller shall transfer balances of the State Lottery Fund for the
fiscal year, based on an estimate determined by the State Lottery Department,
and (ii) no later than ten days after receipt of the annual audit report
required by § 58.1-4023, the Comptroller shall transfer to the Lottery Proceeds
Fund the remaining audited balances of the State Lottery Fund for the fiscal
year. If such annual audit discloses that the actual revenue is less than the
estimate on which the transfer was based, the State Comptroller shall transfer
the difference between the actual revenue and the estimate from the Lottery
Proceeds Fund to the State Lottery Fund.
D. In addition to such other funds as may be appropriated, 100
percent of the lottery revenues transferred to the Lottery Proceeds Fund shall
be appropriated entirely and solely for the purpose of public education in the
Commonwealth unless otherwise redirected pursuant to Article X, Section 7-A of
the Constitution of Virginia. The additional appropriation of lottery revenues
to counties, cities, and towns, and the local
school divisions thereof, for public education purposes
consistent with this provision shall be used for operating, capital outlay, or
debt service expenses, as determined by the appropriation act. The additional appropriation of lottery revenues shall not be used by
any local school division to reduce its total local expenditures for public
education in accordance with the provisions of the general appropriation act.
E. As a function of the administration of this chapter, funds of the State Lottery Fund may be expended for the purposes of reasonably informing the public concerning (i) the facts embraced in the subjects contained in subdivisions 1 through 7 of subsection A of § 58.1-4007 and (ii) the fact that the net proceeds are paid into the Lottery Proceeds Fund of the Commonwealth; but no funds shall be expended for the primary purpose of inducing persons to participate in the lottery.
§ 58.1-4022.1. Lottery Proceeds Fund.
A. There is hereby created in the state treasury a special nonreverting fund to be known as the Lottery Proceeds Fund, hereafter referred to as the "Fund." The Fund shall be established on the books of the Comptroller and interest earned on moneys in the Fund shall remain in the Fund and be credited to it. Any moneys remaining in the Fund, including interest thereon, at the end of each fiscal year shall not revert to the general fund but shall remain in the Fund. The Fund shall consist of amounts deposited into it from the net revenues of any lottery conducted by the Commonwealth pursuant to Article X, Section 7-A of the Constitution of Virginia.
B. For purposes of any appropriation act enacted by the General
Assembly and for the purposes of the Comptroller's preliminary and
final annual reports required by § 2.2-813, all deposits to and appropriations
from the Lottery Proceeds Fund shall be accounted for and
considered to be a part of the general fund of the state treasury.