Okla. Stat. tit. 3A, § 3A-713

Fund - Appropriation of proceeds - Replenishment of fund - Oklahoma

Education Lottery Revolving Fund - Appropriations made available on

a monthly basis.

A. All gross proceeds shall be the property of the Oklahoma

Lottery Commission. From its gross proceeds, the Commission shall

pay the operating expenses of the Commission. At least forty-five

percent (45%) of gross proceeds shall be made available as prize

money. However, the provisions of this subsection shall be deemed

not to create any lien, entitlement, cause of action, or other

private right, and any rights of holders of tickets or shares shall

be determined by the Commission in setting the terms of its lottery

or lotteries.

B. There is hereby created in the State Treasury a fund to be

designated the “Oklahoma Education Lottery Trust Fund”.

Expenditures from the fund shall be made upon warrants issued by the

State Treasurer against claims filed as prescribed by law with the

Director of the Office of Management and Enterprise Services for

approval and payment.

C. Upon their deposit into the State Treasury, any monies

representing a deposit of net proceeds shall then become the

unencumbered property of this state, and neither the Commission nor

the board of trustees shall have the power to agree or undertake

otherwise. The monies shall be invested by the State Treasurer in

accordance with state investment practices. All earnings

attributable to such investments shall likewise be the unencumbered

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property of the state and shall accrue to the credit of the fund

provided for in subsection B of this section.

1. The first Sixty-five Million Dollars ($65,000,000.00) of

monies contributed annually to the Oklahoma Education Lottery Trust

Fund shall only be appropriated as follows:

a. forty-five percent (45%) for the following:

(1) kindergarten through twelfth grade public

education, including but not limited to

compensation and benefits for public school

teachers and support employees, and

(2) early childhood development programs, which shall

include but not be limited to costs associated

with prekindergarten and full-day kindergarten

programs,

b. forty-five percent (45%) for the following:

(1) tuition grants, loans and scholarships to

citizens of this state to enable such citizens to

attend colleges and universities located within

this state, regardless of whether such colleges

and universities are owned or operated by the

Oklahoma State Regents for Higher Education, or

to attend institutions operated under the

authority of the Oklahoma Department of Career

and Technology Education; provided, such tuition

grants, loans and scholarships shall not be made

to a citizen of this state to attend a college or

university which is not accredited by the

Oklahoma State Regents for Higher Education,

(2) construction of educational facilities for

elementary school districts, independent school

districts, The Oklahoma State System of Higher

Education, and career and technology education,

(3) capital outlay projects for elementary school

districts, independent school districts, The

Oklahoma State System of Higher Education, and

career and technology education,
gents for Higher Education,

(2) construction of educational facilities for

elementary school districts, independent school

districts, The Oklahoma State System of Higher

Education, and career and technology education,

(3) capital outlay projects for elementary school

districts, independent school districts, The

Oklahoma State System of Higher Education, and

career and technology education,

(4) technology for public elementary school district,

independent school district, state higher

education, and career and technology education

facilities, which shall include but not be

limited to costs of providing to teachers at

accredited public institutions who teach levels

kindergarten through twelfth grade, personnel at

technology centers under the authority of the

Oklahoma State Department of Career and

Technology Education, and professors and

instructors within The Oklahoma State System of

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Higher Education, the necessary training in the

use and application of computers and advanced

electronic instructional technology to implement

interactive learning environments in the

classroom and to access the statewide distance

learning network and costs associated with

repairing and maintaining advanced electronic

instructional technology,

(5) endowed chairs for professors at institutions of

higher education operated by The Oklahoma State

System of Higher Education, and

(6) programs and personnel of the Oklahoma School for

the Deaf and the Oklahoma School for the Blind,

c. five percent (5%) to the School Consolidation

Assistance Fund. When the total amount in the School

Consolidation Assistance Fund from all sources equals

Five Million Dollars ($5,000,000.00), all monies

appropriated pursuant to this subparagraph which would

otherwise be deposited in the School Consolidation

Assistance Fund in excess of Five Million Dollars

($5,000,000.00) shall be allocated by the State

Department of Education to public schools based on the

audited end-of-year average daily membership in grades

8 through 12 during the preceding school year for the

purpose of purchasing technology equipment. If at any

time the total amount in the School Consolidation

Assistance Fund drops below Five Million Dollars

($5,000,000.00), the monies appropriated pursuant to

this subparagraph shall be deposited in the School

Consolidation Assistance Fund until the Fund again

reaches Five Million Dollars ($5,000,000.00), and

d. five percent (5%) to the Teachers’ Retirement System

Dedicated Revenue Revolving Fund.

In no instance shall the annual maximum percentage for

administrative costs, not including marketing and advertising costs,

funds set aside for prizes, commissions paid to retailers, contract

fees paid to gaming system vendors and instant ticket providers or

emergency-related capital expenses, exceed three percent (3%) of

sales.

2. The remaining portion of lottery annual net proceeds

deposited to the Oklahoma Education Lottery Trust Fund that exceeds

Sixty-five Million Dollars ($65,000,000.00) shall be transferred by

the Office of Management and Enterprise Services to the credit of

the Teacher Empowerment Revolving Fund created in Section 6-190.2 of

Title 70 of the Oklahoma Statutes.

D. The Legislature shall appropriate funds from the Oklahoma

Education Lottery Trust Fund only for the purposes specified in

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subsection C of this section. Even when funds from the trust fund

are used for these purposes, the Legislature shall not use funds

from the trust fund to supplant or replace other state funds

supporting common education, higher education, or career and

technology education.

E. In order to ensure that the funds from the trust fund are

used to enhance and not supplant funding for education, the State

Board of Equalization shall examine and investigate appropriations
for these purposes, the Legislature shall not use funds

from the trust fund to supplant or replace other state funds

supporting common education, higher education, or career and

technology education.

E. In order to ensure that the funds from the trust fund are

used to enhance and not supplant funding for education, the State

Board of Equalization shall examine and investigate appropriations

from the trust fund each year. At the meeting of the State Board of

Equalization held within five (5) days after the monthly

apportionment in February of each year, the State Board of

Equalization shall issue a finding and report which shall state

whether appropriations from the trust fund were used to enhance or

supplant education funding. If the State Board of Equalization

finds that education funding was supplanted by funds from the trust

fund, the Board shall specify the amount by which education funding

was supplanted. In this event, the Legislature shall not make any

appropriations for the ensuing fiscal year until an appropriation in

that amount is made to replenish the trust fund.

F. Except as otherwise provided by this subsection, no

deficiency in the Oklahoma Education Lottery Trust Fund shall be

replenished by reducing any nonlottery funds including, specifically

but without limitation, the General Revenue Fund, the Constitutional

Reserve Fund, or the Education Reform Revolving Fund of the State

Department of Education. No program or project started specifically

from lottery proceeds shall be continued from the General Revenue

Fund, the Constitutional Reserve Fund, or the Education Reform

Revolving Fund of the State Department of Education. Such programs

must be adjusted or discontinued according to available lottery

proceeds unless the Legislature by general law establishes

eligibility requirements and appropriates specific funds therefor.

No surplus in the Oklahoma Education Lottery Trust Fund shall be

reduced or transferred to correct any nonlottery deficiencies in

sums available for general appropriations. The provisions of this

subsection shall not apply to bonds or other obligations issued

pursuant to or to the repayment of bonds or other obligations issued

pursuant to the Oklahoma Higher Education Promise of Excellence Act

of 2005.

G. There is hereby created in the State Treasury a revolving

fund to be designated the “Oklahoma Education Lottery Revolving

Fund”. The fund shall be a continuing fund, not subject to fiscal

year limitations, and shall consist of all monies received by the

Commission. All monies accruing to the credit of the Oklahoma

Education Lottery Revolving Fund are hereby appropriated and may be

budgeted and expended for the payment of net proceeds, prizes,

commissions to retailers, administrative expenses and all other

expenses arising out of the operation of the education lottery,

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subject to the limitations provided in the Oklahoma Education

Lottery Act. Expenditures from the fund shall be made upon warrants

issued by the State Treasurer against claims filed as prescribed by

law with the Director of the Office of Management and Enterprise

Services for approval and payment.

The monies in the fund shall be invested by the State Treasurer

in accordance with state investment practices. All earnings

attributable to such investments shall likewise accrue to the credit

of the fund.

H. When appropriations from the Oklahoma Education Lottery

Trust Fund are made to common education pursuant to the provisions

of subparagraph a of paragraph 1 of subsection C of this section,

the appropriations shall be made available on a monthly basis. The

following process shall be used to ensure that the appropriations

are made available to common education in a timely manner:

1. Beginning in July of the fiscal year in which appropriations

are made to common education from the Oklahoma Education Lottery
visions

of subparagraph a of paragraph 1 of subsection C of this section,

the appropriations shall be made available on a monthly basis. The

following process shall be used to ensure that the appropriations

are made available to common education in a timely manner:

1. Beginning in July of the fiscal year in which appropriations

are made to common education from the Oklahoma Education Lottery

Trust Fund, the Commission, on or before the ninth day of each

month, shall transfer to the State Treasurer, for credit to the

Oklahoma Education Lottery Trust Fund, one-twelfth (1/12) of the

annual apportionment due to common education as required by

subparagraph a of paragraph 1 of subsection C of this section;

2. The Director of the Office of Management and Enterprise

Services shall allocate the transfers provided for in paragraph 1 of

this subsection to the State Department of Education on a monthly

basis, not to exceed one-twelfth (1/12) of the annual apportionment

for the fiscal year; and

3. The total amount of transfers to the Oklahoma Education

Lottery Trust Fund of net lottery proceeds made pursuant to this

subsection shall not exceed the total appropriations made to common

education from the Oklahoma Education Lottery Trust Fund for the

specific fiscal year.

I. When appropriations from the Oklahoma Education Lottery

Trust Fund are made to The Oklahoma State System of Higher Education

pursuant to the provisions of subparagraph b of paragraph 1 of

subsection C of this section, the appropriations shall be made

available to the System on a monthly basis. The following process

shall be used to ensure that the appropriations are made available

to The Oklahoma State System of Higher Education in a timely manner:

1. Beginning in July of the fiscal year in which appropriations

are made to The Oklahoma State System of Higher Education from the

Oklahoma Education Lottery Trust Fund, the Commission, on or before

the ninth day of each month, shall transfer to the State Treasurer,

for credit to the Oklahoma Education Lottery Trust Fund one-twelfth

(1/12) of the annual apportionment due to the Oklahoma State Regents

for Higher Education as required by subparagraph b of paragraph 1 of

subsection C of this section;

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2. The Director of the Office of Management and Enterprise

Services shall allocate the transfers provided for in paragraph 1 of

this subsection to the Oklahoma State Regents for Higher Education

on a monthly basis, not to exceed one-twelfth (1/12) of the annual

apportionment for the fiscal year; and

3. The total amount of transfers to the Oklahoma Education

Lottery Trust Fund of net lottery proceeds made pursuant to this

subsection shall not exceed the total appropriations made to The

Oklahoma State System for Higher Education from the Oklahoma

Education Lottery Trust Fund for the specific fiscal year.

J. When appropriations from the Oklahoma Education Lottery

Trust Fund are made to the Oklahoma Department of Career and

Technology Education, pursuant to the provisions of subparagraph b

of paragraph 1 of subsection C of this section, the appropriations

shall be made available on an annual basis. The following process

shall be used to ensure that the appropriations to the Oklahoma

Education Lottery Trust Fund are available for the Oklahoma

Department of Career and Technology Education in a timely manner:

1. Beginning in July of the fiscal year in which appropriations

are made to the Oklahoma Department of Career and Technology

Education from the Oklahoma Education Lottery Trust Fund, the

Commission, on or before the ninth day of each quarter, shall

transfer to the State Treasurer, for credit to the Oklahoma

Education Lottery Trust Fund, one-fourth (1/4) of the annual

apportionment due to the Oklahoma Department of Career and

Technology Education as required by subparagraph b of paragraph 1 of
Career and Technology

Education from the Oklahoma Education Lottery Trust Fund, the

Commission, on or before the ninth day of each quarter, shall

transfer to the State Treasurer, for credit to the Oklahoma

Education Lottery Trust Fund, one-fourth (1/4) of the annual

apportionment due to the Oklahoma Department of Career and

Technology Education as required by subparagraph b of paragraph 1 of

subsection C of this section;

2. The Director of the Office of Management and Enterprise

Services shall allocate the transfer provided for in paragraph 1 of

this subsection to the Oklahoma Department of Career and Technology

Education on a quarterly basis, not to exceed one-fourth (1/4) of

the annual apportionment for the fiscal year; and

3. The total amount of transfers to the Oklahoma Education

Lottery Trust Fund of net lottery proceeds made pursuant to this

subsection shall not exceed the total appropriations made to the

Oklahoma Department of Career and Technology Education from the

Oklahoma Education Lottery Trust Fund for the specific fiscal year.

K. When appropriations from the Oklahoma Education Lottery

Trust Fund are made to the School Consolidation Assistance Fund and

Teachers’ Retirement System Dedicated Revenue Revolving Fund,

pursuant to the provisions of subparagraphs c and d of paragraph 1

of subsection C of this section, the appropriations shall be made

available on an annual basis. The following process shall be used

to ensure that the appropriations to the Oklahoma Education Lottery

Trust Fund are made available to the School Consolidation Assistance

Fund and Teachers’ Retirement System Dedicated Revenue Revolving

Fund in a timely manner:

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1. Beginning in July of the fiscal year in which appropriations

are made to the School Consolidation Assistance Fund and the

Teachers’ Retirement System Dedicated Revenue Revolving Fund from

the Oklahoma Education Lottery Trust Fund, the Commission, on or

before the ninth day of each quarter, shall transfer to the State

Treasurer, for credit to the Oklahoma Education Lottery Trust Fund,

one-fourth (1/4) of the annual apportionment due to the School

Consolidation Assistance Fund and the Teachers’ Retirement System

Dedicated Revenue Revolving Fund as required by subparagraphs c and

d of paragraph 1 of subsection C of this section;

2. The Director of the Office of Management and Enterprise

Services shall allocate the transfers provided for in paragraph 1 of

this subsection to the School Consolidation Assistance Fund and the

Teachers’ Retirement System Dedicated Revenue Revolving Fund on a

quarterly basis, not to exceed one-fourth (1/4) of the annual

apportionment for the fiscal year; and

3. The total amount of transfers to the Oklahoma Education

Lottery Trust Fund of net lottery proceeds made pursuant to this

subsection shall not exceed the total appropriations made to the

School Consolidation Assistance Fund and the Teachers’ Retirement

System Dedicated Revenue Revolving Fund from the Oklahoma Education

Lottery Trust Fund for the specific fiscal year.

L. At the conclusion of each fiscal year, the Oklahoma Lottery

Commission shall make available all remaining profits to the

Oklahoma Education Lottery Trust Fund in the following manner:

1. By July 9 of the proceeding fiscal year, the Oklahoma

Lottery Commission shall transfer the five percent (5%) difference

between the previous year’s State Board of Equalization estimate and

the appropriated amount. The cash contribution shall be available

for appropriation in the following legislative session pending

profit exists above and beyond the prior year’s annual

appropriation; and

2. By September 30, the Oklahoma Lottery Commission shall

transfer all remaining profit as established by an external

financial audit pursuant to Section 733 of this title. This cash
ate and

the appropriated amount. The cash contribution shall be available

for appropriation in the following legislative session pending

profit exists above and beyond the prior year’s annual

appropriation; and

2. By September 30, the Oklahoma Lottery Commission shall

transfer all remaining profit as established by an external

financial audit pursuant to Section 733 of this title. This cash

contribution shall be available for appropriation in the following

legislative session pending profit exists above and beyond the prior

year’s annual appropriation.