Bill Text: OH HB154 | 2013-2014 | 130th General Assembly | Introduced

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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: Partisan Bill (Democrat 4-0)

Status: (Introduced - Dead) 2013-05-07 - To Finance and Appropriations [HB154 Detail]

Download: Ohio-2013-HB154-Introduced.html

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As Introduced

130th General Assembly Regular Session 2013-2014

H. B. No. 154

Representative Gerberry 

Cosponsors: Representatives Antonio, Fedor, Lundy 

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A BILL

To amend section 3770.06 and to enact section 3317.54

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of the Revised Code to require that a portion of

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lottery profits be distributed annually on a per

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pupil basis to public and chartered nonpublic

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schools.

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

Section 1. That section 3770.06 be amended and section	6
3317.54 of the Revised Code be enacted to read as follows:	7

Sec. 3317.54. (A) As used in this section:

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(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:

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(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 either the autism scholarship	36
program or the Jon Peterson special needs scholarship program, as	37
certified under division (A)(2)(h) of that section and verified by	38
the superintendent of public instruction;	39

(v) The number of students included in the district's formula	40
ADM who were enrolled in a science, technology, engineering, and	41
mathematics school, as certified under division (A)(2)(i) of that	42
section and verified by the superintendent of public instruction.	43

(b) For a joint vocational school district, the district's	44
formula ADM for the previous fiscal year;	45

(c) For a community school established under Chapter 3314. of	46
the Revised Code, the number of students reported for the previous	47
fiscal year under divisions (B)(2)(a) and (b) of section 3314.08	48
of the Revised Code, minus the number of the school's students who	49
also were enrolled in a joint vocational school district as	50
certified under division (D)(1) of section 3317.03 of the Revised	51
Code, all on an FTE basis and as verified by the superintendent of	52
public instruction;	53

(d) For a STEM school established under Chapter 3326. of the	54
Revised Code, the number of students reported for the previous	55
fiscal year under division (A) of section 3326.32 of the Revised	56
Code, minus the number of the school's students who also were	57
enrolled in a joint vocational school district as certified under	58
division (D)(1) of section 3317.03 of the Revised Code, all on an	59
FTE basis and as verified by the superintendent of public	60
instruction;	61

(e) For a chartered nonpublic school, the number of students	62
enrolled in the school during the previous fiscal year as reported	63
to the department of education in the manner and by the deadline	64
established by the department of education for purposes of this	65
section. A chartered nonpublic school's "student count" shall be	66
determined on an FTE basis and shall include students enrolled in	67
the school with a scholarship under sections 3313.974 to 3313.979	68
or Chapter 3310. of the Revised Code.	69

(B) On or before August 1, 2015, and on or before the first	70
day of August of each fiscal year thereafter, the department of	71
education shall pay to each entity for which a separate student	72
count is prescribed by division (A)(3)(a), (b), (c), (d), or (e)	73
of this section an amount equal to the entity's student count	74
multiplied by the per pupil distribution amount. The amount paid	75
to an entity under this section is in addition to any other amount	76
calculated and paid to the entity under this chapter or Chapter	77
3310., 3313., 3314., or 3326. of the Revised Code.	78

(C) The amount paid to an entity under this section may be	79
used for any lawful purpose, except for the payment of salaries	80
and benefits, in support of the entity's elementary, secondary,	81
vocational, or special education programs.	82

Sec. 3770.06.  (A) There is hereby created the state lottery	83
gross revenue fund, which shall be in the custody of the treasurer	84
of state but shall not be part of the state treasury. All gross	85
revenues received from sales of lottery tickets, fines, fees, and	86
related proceeds in connection with the statewide lottery and all	87
gross proceeds from statewide joint lottery games shall be	88
deposited into the fund. The treasurer of state shall invest any	89
portion of the fund not needed for immediate use in the same	90
manner as, and subject to all provisions of law with respect to	91
the investment of, state funds. The treasurer of state shall	92
disburse money from the fund on order of the director of the state	93
lottery commission or the director's designee.	94

Except for gross proceeds from statewide joint lottery games,	95
all revenues of the state lottery gross revenue fund that are not	96
paid to holders of winning lottery tickets, that are not required	97
to meet short-term prize liabilities, that are not credited to	98
lottery sales agents in the form of bonuses, commissions, or	99
reimbursements, that are not paid to financial institutions to	100
reimburse those institutions for sales agent nonsufficient funds,	101
and that are collected from sales agents for remittance to	102
insurers under contract to provide sales agent bonding services	103
shall be transferred to the state lottery fund, which is hereby	104
created in the state treasury. In addition, all revenues of the	105
state lottery gross revenue fund that represent the gross proceeds	106
from the statewide joint lottery games and that are not paid to	107
holders of winning lottery tickets, that are not required to meet	108
short-term prize liabilities, that are not credited to lottery	109
sales agents in the form of bonuses, commissions, or	110
reimbursements, and that are not necessary to cover operating	111
expenses associated with those games or to otherwise comply with	112
the agreements signed by the governor that the director enters	113
into under division (J) of section 3770.02 of the Revised Code or	114
the rules the commission adopts under division (B)(5) of section	115
3770.03 of the Revised Code shall be transferred to the state	116
lottery fund. All investment earnings of the fund shall be	117
credited to the fund. Moneys shall be disbursed from the fund	118
pursuant to vouchers approved by the director. Total disbursements	119
for monetary prize awards to holders of winning lottery tickets in	120
connection with the statewide lottery and purchases of goods and	121
services awarded as prizes to holders of winning lottery tickets	122
shall be of an amount equal to at least fifty per cent of the	123
total revenue accruing from the sale of lottery tickets.	124

(B)(1) Pursuant to Section 6 of Article XV, Ohio	125
Constitution, there is hereby established in the state treasury	126
the lottery profits education fund. Whenever, in the judgment of	127
the director of the state lottery commission, the amount to the	128
credit of the state lottery fund that does not represent proceeds	129
from statewide joint lottery games is in excess of that needed to	130
meet the maturing obligations of the commission and as working	131
capital for its further operations, the director of the state	132
lottery commission shall recommend the amount of the excess to be	133
transferred to the lottery profits education fund, and the	134
director of budget and management may transfer the excess to the	135
lottery profits education fund in connection with the statewide	136
lottery. In addition, whenever, in the judgment of the director of	137
the state lottery commission, the amount to the credit of the	138
state lottery fund that represents proceeds from statewide joint	139
lottery games equals the entire net proceeds of those games as	140
described in division (B)(5) of section 3770.03 of the Revised	141
Code and the rules adopted under that division, the director of	142
the state lottery commission shall recommend the amount of the	143
proceeds to be transferred to the lottery profits education fund,	144
and the director of budget and management may transfer those	145
proceeds to the lottery profits education fund. Investment	146
earnings of the lottery profits education fund shall be credited	147
to the fund.	148

TheSubject to division (B)(2) of this section, the lottery	149
profits education fund shall be used solely for the support of	150
elementary, secondary, vocational, and special education programs	151
as determined in appropriations made by the general assembly, or	152
as provided in applicable bond proceedings for the payment of debt	153
service on obligations issued to pay costs of capital facilities,	154
including those for a system of common schools throughout the	155
state pursuant to section 2n of Article VIII, Ohio Constitution.	156
When determining the availability of money in the lottery profits	157
education fund, the director of budget and management may consider	158
all balances and estimated revenues of the fund.	159

(2)(a) As used in this division, "base lottery profits	160
amount" means the total amount appropriated from the lottery	161
profits education fund group for fiscal year 2015.	162

(b) On or before July 15, 2015, and on or before the	163
fifteenth day of July of each fiscal year thereafter, the director	164
of budget and management shall certify to the superintendent of	165
public instruction the amount by which lottery profit transfers	166
into the lottery profits education fund during the previous fiscal	167
year exceeded the sum of (i) the base lottery profits amount plus	168
(ii) the amount paid from the lottery profits education fund	169
during the previous fiscal year for debt service on obligations	170
issued to pay costs of capital facilities, including those for a	171
system of common schools throughout the state pursuant to section	172
2n of Article VIII, Ohio Constitution. That excess amount is the	173
"excess lottery profits amount" that is available for distribution	174
in the current fiscal year. The department of education shall	175
distribute that excess lottery profits amount during the current	176
fiscal year in accordance with section 3317.54 of the Revised	177
Code.	178

(C) There is hereby established in the state treasury the	179
deferred prizes trust fund. With the approval of the director of	180
budget and management, an amount sufficient to fund annuity prizes	181
shall be transferred from the state lottery fund and credited to	182
the trust fund. The treasurer of state shall credit all earnings	183
arising from investments purchased under this division to the	184
trust fund. Within sixty days after the end of each fiscal year,	185
the treasurer of state shall certify to the director of budget and	186
management whether the actuarial amount of the trust fund is	187
sufficient over the fund's life for continued funding of all	188
remaining deferred prize liabilities as of the last day of the	189
fiscal year just ended. Also, within that sixty days, the director	190
of budget and management shall certify the amount of investment	191
earnings necessary to have been credited to the trust fund during	192
the fiscal year just ending to provide for such continued funding	193
of deferred prizes. Any earnings credited in excess of the latter	194
certified amount shall be transferred to the lottery profits	195
education fund.	196

To provide all or a part of the amounts necessary to fund	197
deferred prizes awarded by the commission in connection with the	198
statewide lottery, the treasurer of state, in consultation with	199
the commission, may invest moneys contained in the deferred prizes	200
trust fund which represents proceeds from the statewide lottery in	201
obligations of the type permitted for the investment of state	202
funds but whose maturities are thirty years or less.	203
Notwithstanding the requirements of any other section of the	204
Revised Code, to provide all or part of the amounts necessary to	205
fund deferred prizes awarded by the commission in connection with	206
statewide joint lottery games, the treasurer of state, in	207
consultation with the commission, may invest moneys in the trust	208
fund which represent proceeds derived from the statewide joint	209
lottery games in accordance with the rules the commission adopts	210
under division (B)(5) of section 3770.03 of the Revised Code.	211
Investments of the trust fund are not subject to the provisions of	212
division (A)(10) of section 135.143 of the Revised Code limiting	213
to twenty-five per cent the amount of the state's total average	214
portfolio that may be invested in debt interests and limiting to	215
one-half of one per cent the amount that may be invested in debt	216
interests of a single issuer.	217

All purchases made under this division shall be effected on a	218
delivery versus payment method and shall be in the custody of the	219
treasurer of state.	220

The treasurer of state may retain an investment advisor, if	221
necessary. The commission shall pay any costs incurred by the	222
treasurer of state in retaining an investment advisor.	223

(D) The auditor of state shall conduct annual audits of all	224
funds and any other audits as the auditor of state or the general	225
assembly considers necessary. The auditor of state may examine all	226
records, files, and other documents of the commission, and records	227
of lottery sales agents that pertain to their activities as	228
agents, for purposes of conducting authorized audits.	229

The state lottery commission shall establish an internal	230
audit program before the beginning of each fiscal year, subject to	231
the approval of the auditor of state. At the end of each fiscal	232
year, the commission shall prepare and submit an annual report to	233
the auditor of state for the auditor of state's review and	234
approval, specifying the internal audit work completed by the end	235
of that fiscal year and reporting on compliance with the annual	236
internal audit program. The form and content of the report shall	237
be prescribed by the auditor of state under division (C) of	238
section 117.20 of the Revised Code.	239

(E) Whenever, in the judgment of the director of budget and	240
management, an amount of net state lottery proceeds is necessary	241
to be applied to the payment of debt service on obligations, all	242
as defined in sections 151.01 and 151.03 of the Revised Code, the	243
director shall transfer that amount directly from the state	244
lottery fund or from the lottery profits education fund to the	245
bond service fund defined in those sections. The provisions of	246
this division are subject to any prior pledges or obligation of	247
those amounts to the payment of bond service charges as defined in	248
division (C) of section 3318.21 of the Revised Code, as referred	249
to in division (B) of this section.	250

Section 2.  That existing section 3770.06 of the Revised Code	251
is hereby repealed.	252