House File 596 - Introduced
HOUSE FILE
BY PAULSEN
Passed House, Date Passed Senate, Date
Vote: Ayes Nays Vote: Ayes Nays
Approved
A BILL FOR
1 An Act relating to state funding of education by creating a
2 lottery fund for education and providing for the crediting of
3 lottery revenues.
4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
5 TLSB 2558YH 82
6 jp/es/88
PAG LIN
1 1 Section 1. NEW SECTION. 8.57D LOTTERY FUND FOR
1 2 EDUCATION.
1 3 1. The lottery fund for education is created under the
1 4 authority of the department of management. The fund shall
1 5 consist of appropriations made to the fund and transfers of
1 6 interest, earnings, and moneys from other funds as provided by
1 7 law. The fund shall be separate from the general fund of the
1 8 state and the balance in the fund shall not be considered part
1 9 of the balance of the general fund of the state. However, the
1 10 fund shall be considered a special account for the purposes of
1 11 section 8.53, relating to generally accepted accounting
1 12 principles.
1 13 2. Notwithstanding section 12C.7, subsection 2, interest
1 14 or earnings on moneys in the fund shall be credited to the
1 15 fund.
1 16 3. Moneys in the fund in a fiscal year shall be used as
1 17 appropriated by the general assembly to provide additional
1 18 support for the education of the children of Iowa.
1 19 Sec. 2. Section 8.58, Code 2007, is amended to read as
1 20 follows:
1 21 8.58 EXEMPTION FROM AUTOMATIC APPLICATION.
1 22 1. To the extent that moneys appropriated under section
1 23 8.57 do not result in moneys being credited to the general
1 24 fund under section 8.55, subsection 2, moneys appropriated
1 25 under section 8.57 and moneys contained in the cash reserve
1 26 fund, rebuild Iowa infrastructure fund, environment first
1 27 fund, lottery fund for education, and Iowa economic emergency
1 28 fund shall not be considered in the application of any
1 29 formula, index, or other statutory triggering mechanism which
1 30 would affect appropriations, payments, or taxation rates,
1 31 contrary provisions of the Code notwithstanding.
1 32 2. To the extent that moneys appropriated under section
1 33 8.57 do not result in moneys being credited to the general
1 34 fund under section 8.55, subsection 2, moneys appropriated
1 35 under section 8.57 and moneys contained in the cash reserve
2 1 fund, rebuild Iowa infrastructure fund, environment first
2 2 fund, lottery fund for education, and Iowa economic emergency
2 3 fund shall not be considered by an arbitrator or in
2 4 negotiations under chapter 20.
2 5 Sec. 3. Section 99G.2, subsection 1, Code 2007, is amended
2 6 to read as follows:
2 7 1. That net proceeds of lottery games conducted pursuant
2 8 to this chapter should be transferred to the general lottery
2 9 fund of the state for education created in section 8.57D in
2 10 support of a variety of education programs and services.
2 11 Sec. 4. Section 99G.7, subsection 1, paragraph h, Code
2 12 2007, is amended to read as follows:
2 13 h. Report quarterly and annually to the board, the
2 14 governor, the auditor of state, and the general assembly a
2 15 full and complete statement of lottery revenues and expenses
2 16 for the preceding quarter, and with respect to the annual
2 17 report, for the preceding year, and transfer proceeds to the
2 18 general lottery fund for education within thirty days
2 19 following the end of the quarter.
2 20 Sec. 5. Section 99G.39, subsection 3, paragraph a, Code
2 21 2007, is amended to read as follows:
2 22 a. Notwithstanding subsection 1, if gaming revenues under
2 23 sections 99D.17 and 99F.11 are insufficient in a fiscal year
2 24 to meet the total amount of such revenues directed to be
2 25 deposited in credited to the vision Iowa fund and the school
2 26 infrastructure fund during the fiscal year pursuant to section
2 27 8.57, subsection 6, paragraph "e", the difference shall be
2 28 paid from lottery revenues prior to deposit transfer of the
2 29 lottery revenues in the general to the lottery fund for
2 30 education. If lottery revenues are insufficient during the
2 31 fiscal year to pay the difference, the remaining difference
2 32 shall be paid from lottery revenues in subsequent fiscal years
2 33 as such revenues become available.
2 34 Sec. 6. Section 99G.40, subsections 2, 3, and 4, Code
2 35 2007, are amended to read as follows:
3 1 2. A lottery fund is created in the office of the
3 2 treasurer of state and shall exist as the recipient fund for
3 3 authority receipts. The fund consists of all revenues
3 4 received from the sale of lottery tickets or shares and all
3 5 other moneys lawfully credited or transferred to the fund.
3 6 The chief executive officer shall certify quarterly that
3 7 portion of the fund that has been transferred to the general
3 8 fund of the state will be transferred to the lottery fund for
3 9 education under this chapter and shall cause that portion to
3 10 be transferred to the general fund of the state to the lottery
3 11 fund for education. However, upon the request of the chief
3 12 executive officer and subject to the approval by the treasurer
3 13 of state, an amount sufficient to cover the foreseeable
3 14 administrative expenses of the lottery for a period of
3 15 twenty=one days may be retained from the lottery fund. Prior
3 16 to the quarterly transfer to the general lottery fund of the
3 17 state for education, the chief executive officer may direct
3 18 that lottery revenue shall be deposited in the lottery fund
3 19 and in interest=bearing accounts designated by the treasurer
3 20 of state. Interest or earnings paid on the deposits or
3 21 investments is considered lottery revenue and shall be
3 22 transferred to the general lottery fund of the state for
3 23 education in the same manner as other lottery revenue.
3 24 3. The chief executive officer shall certify before the
3 25 last day of the month following each quarter that portion of
3 26 the lottery fund resulting from the previous quarter's sales
3 27 to be transferred to the general lottery fund of the state for
3 28 education.
3 29 4. For informational purposes only, the chief executive
3 30 officer shall submit to the department of management by
3 31 October 1 of each year a proposed operating budget for the
3 32 authority for the succeeding fiscal year. This budget
3 33 proposal shall also be accompanied by an estimate of the net
3 34 proceeds to be deposited into the general fund transferred to
3 35 the lottery fund for education during the succeeding fiscal
4 1 year. This budget shall be on forms prescribed by the
4 2 department of management. A copy of the information required
4 3 to be submitted to the department of management pursuant to
4 4 this subsection shall be submitted to the legislative
4 5 government oversight committees and the legislative services
4 6 agency by October 1 of each year.
4 7 EXPLANATION
4 8 This bill relates to state funding of education by creating
4 9 a lottery fund for education and providing for the crediting
4 10 of lottery revenues.
4 11 New Code section 8.57D creates the lottery fund for
4 12 education under the control of the department of management.
4 13 The fund is separate from the general fund of the state except
4 14 for determining state fund balances under generally accepted
4 15 accounting principles. The fund retains interest and
4 16 earnings. The purpose of the fund is to provide additional
4 17 support for the education of the children of Iowa.
4 18 Code chapter 99G provisions are amended to provide that
4 19 lottery revenues that would otherwise be credited to the state
4 20 general fund under current law are instead required to be
4 21 transferred to the lottery fund for education.
4 22 LSB 2558YH 82
4 23 jp:nh/es/88