99E.10  Allocation and appropriation of funds generated.

1.  Upon receipt of any revenue, the commissioner shall deposit the moneys in the lottery fund created pursuant to section 99E.20. As nearly as is practicable, at least fifty percent of the projected annual revenue, after deduction of the amount of the sales tax, accruing from the sale of tickets or shares is appropriated for payment of prizes to the holders of winning tickets. After the payment of prizes, all of the following shall be deducted from lottery revenue prior to disbursement:

a.  An amount equal to three-tenths of one percent of the gross lottery revenue shall be deposited in a gambling treatment fund in the office of the treasurer of state.

b.  An amount equal to the product of the state sales tax rate under section 422.43 multiplied by the gross sales price of each ticket or share sold shall be deducted as the sales tax on the sale of that ticket or share, remitted to the treasurer of state and deposited into the state general fund.

c.  The expenses of conducting the lottery including the reasonable expenses incurred by the attorney general's office in enforcing this chapter.

d.  The contractual expenses required in this paragraph. The division of criminal investigation shall be the primary state agency responsible for investigating criminal violations of the law under this chapter. The commissioner shall contract with the department of public safety for investigative services, including the employment of special agents and support personnel, and procurement of necessary equipment to carry out the responsibilities of the division of criminal investigation under the terms of the agreement and this chapter.

e.  For the fiscal year beginning July 1, 1993, after the first thirty-three million dollars is transferred to the general fund of the state, five hundred thousand dollars shall be deposited in the Iowa state fair foundation in the office of the treasurer of state to be used by the foundation fund for capital projects or major maintenance improvements at the Iowa state fairgrounds. For the fiscal period beginning July 1, 1994, and ending June 30, 1996, five hundred thousand dollars shall annually be deposited in the Iowa state fair foundation fund in the office of the treasurer of state to be used by the foundation for capital projects or major maintenance improvements at the Iowa state fairgrounds. Matching funds from other sources shall not be required for expenditure of funds deposited pursuant to this subsection.

Lottery expenses for marketing, educational, and informational material shall not exceed four percent of the lottery revenue.

Lottery revenue remaining after expenses are determined shall be transferred to the general fund of the state on a monthly basis. However, upon the request of the director and subject to approval by the treasurer of state, an amount sufficient to cover the foreseeable administrative expenses of the lottery for a period of twenty-one days may be retained from the lottery revenue. Prior to the monthly transfer to the general fund of the state, the director may direct that lottery revenue shall be deposited in the lottery fund and in interest-bearing accounts designated by the treasurer of state in the financial institutions of this state or invested in the manner provided in section 12B.10. Interest or earnings paid on the deposits or investments is considered lottery revenue and shall be transferred to the general fund of the state in the same manner as other lottery revenue.

2.  The director of management shall not include lottery revenues in the director's fiscal year revenue estimates.

Section History: Recent form

  85 Acts, ch 32, §114, 115; 85 Acts, ch 33, §110; 85 Acts, ch 256, § 9; 86 Acts, ch 1207, § 20; 86 Acts, ch 1068, §1; 86 Acts, ch 1244, § 21; 86 Acts, ch 1042, § 6; 87 Acts, ch 231, § 2; 88 Acts, ch 1268, § 2; 90 Acts, ch 1255, § 6-8; 90 Acts, ch 1270, § 41; 91 Acts, ch 267, § 138; 92 Acts, 2nd Ex, ch 1001, § 201; 93 Acts, ch 131, §3; 93 Acts, ch 180, §31; 94 Acts, ch 1186, §32; 96 Acts, ch 1212, § 13, 14; 97 Acts, ch 203, §11; 98 Acts, ch 1221, §10; 99 Acts, ch 201, §9; 99 Acts, ch 208, §2, 3

Internal References

  Referred to in § 8.22A, 99E.9, 99E.20, 99F.11, 422.43


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