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HOUSE OF REPRESENTATIVES - FLOOR VERSION
STATE OF OKLAHOMA
2nd Session of the 58th Legislature (2022)
COMMITTEE SUBSTITUTE
FOR
HOUSE BILL NO. 4388 By: Hilbert and Baker
COMMITTEE SUBSTITUTE
[ amusements and sports - Oklahoma Education Lottery
Act - Teacher Empowerment Revolving Fund -
effective date - conditional effect ]
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLA HOMA:
SECTION 1. AMENDATORY 3A O.S. 2021, Section 713, is
amended to read as follows:
Section 713. A. All gross proceeds shall be t he property of
the Oklahoma Lottery Commission. From its gross proceeds, the
Commission shall pay the ope rating expenses of the Commission. At
least forty-five percent (45%) of gross proceeds shall be made
available as prize money. However, the provisio ns of this
subsection shall be deemed not to create any lien, entitlement,
cause of action, or other priva te right, and any rights of holders
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of tickets or shares shall be d etermined by the Commission in
setting the terms of its lottery or lotteries.
B. The Oklahoma Lottery Commission shall submit a written
report of its findings and any recommendations regar ding the impact
of removing the requirement that net proceeds shall equal at least
thirty-five percent (35%) of the gr oss proceeds. The report shall
be submitted to the Governor, the Speaker of the Oklahoma House of
Representatives and the President Pro T empore of the Oklahoma State
Senate not later than October 1, 2020, and annually thereafter.
C. There is hereby creat ed in the State Treasury a fund to be
designated the "Oklahoma Education Lottery Trust Fund ". Except as
otherwise provided in subsections I H and J I of this section, on or
before the fifteenth day of each ca lendar quarter, the Commission
shall transfer to the State Treasurer, for credit to the Oklahoma
Education Lottery Trust Fund, the amount of all net proceeds
accruing during the preceding c alendar quarter. Expenditures from
the fund shall be made upon war rants 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.
D. 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 neit her the Commission nor
the board of trustees shall have the power to agree or undertake
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otherwise. The monies shall be invested by the State Treasurer in
accordance with state investment practices. All earnings
attributable to such investments shall like wise be the unencumbered
property of the state and shall accrue to the credit of the fund
provided for in subsection C of this section.
E. Monies in 1. The first Sixty Million Dollars
($60,000,000.00) of monies contrib uted annually to the Oklahoma
Education Lottery Trust Fund shall only be appropriated as follows:
1. a. Forty-five percent (45%) for the following:
a. (1) kindergarten through twelfth grade public
education, including but not limite d to
compensation and benefits for public school
teachers and support employees, and
b. (2) early childhood development programs, which shall
include but not be limited to costs associated
with prekindergarten and full -day kindergarten
programs;,
2. b. Forty-five percent (45%) for the following:
a. (1) tuition grants, loans and sc holarships to
citizens of this state to enable such citizens to
attend colleges and u niversities located within
this state, regardless of whether such colleges
and universities are owned or o perated by the
Oklahoma State Regents for Higher Education, or
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to attend institutions operated under the
authority of the Oklahoma Department of Caree r
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 no t accredited by the
Oklahoma State Regents for Higher Education,
b. (2) construction of educational facilities for
elementary school districts, independent school
districts, The Oklahoma State Sy stem of Higher
Education, and career and technology education ,
c. (3) capital outlay projects for elementary school
districts, independent school districts, The
Oklahoma State System of Higher Education, and
career and technology education,
d. (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 leve ls
kindergarten through twelfth g rade, personnel at
technology centers under the authority of the
Oklahoma State Department of Career and
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Technology Education, and professors and
instructors within The Oklahoma State System of
Higher Education, the necessa ry training in the
use and application of computers a nd advanced
electronic instructional technology to implement
interactive learning env ironments in the
classroom and to access the statewide distance
learning network and costs associated with
repairing and maintaining advanced electroni c
instructional technology,
e. (5) endowed chairs for professors at institutions of
higher education oper ated by The Oklahoma State
System of Higher Education, and
f. (6) programs and personnel of the Oklahoma School for
the Deaf and the Oklahoma School for the Bl ind;,
3. c. Five percent (5%) to the Sch ool Consolidation and
Assistance Fund. When the total a mount in the School
Consolidation and Assistance Fund from all sources
equals Five Million Dollars ($5,000,000.00), all
monies appropriated pursuant to this paragr aph which
would otherwise be deposite d in the School
Consolidation and Assistance Fund in exc ess of Five
Million Dollars ($5,000,000.00) shall be allocated by
the State Department of Education to public schools
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based on the audited end-of-year average daily
membership in grades 8 through 12 d uring the preceding
school year for the purpose of purch asing technology
equipment. If at any time the total amount in the
School Consolidation and Assistance Fund drops below
Five Million Dollars ($5,000,000.00), the monies
appropriated pursuant to this paragraph shall be
deposited in the School Consolidation and Assistance
Fund until the Fund again reaches Five Million Dollars
($5,000,000.00);, and
4. 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, contr act
fees paid to gaming system vendors and insta nt ticket providers or
emergency-related capital expenses, exceed three percent (3%) of
sales.
F. 2. The remaining portion of lottery annual net proceeds
deposited to the Oklahoma Education Lottery Trust Fun d that exceeds
Sixty Million Dollars ($60,000,000.00) shall be deposited to the
credit of the Teacher Empowerment Revolving Fund crea ted in Section
2 of this act.
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E. The Legislature shall appropriate funds from the Oklahoma
Education Lottery Trust Fund on ly for the purposes specified in
subsection E D 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.
G. F. In order to ensure that the funds from the trust f und 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 S tate Board of
Equalization held within five (5) days after t he 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 enhanc e or
supplant education funding. If the State Board of Equa lization
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 sha ll not make any
appropriations for the ensuing fiscal year u ntil an appropriation in
that amount is made to replenish the trust fund.
H. G. Except as otherwise provided by this subsection, no
deficiency in the Oklahoma Education Lottery Trust Fund shall b e
replenished by reducing any nonlottery funds, including sp ecifically
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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 sta rted specifically
from lottery proceeds shall be continued f rom the General Revenue
Fund, the Constitutional Reserve Fund or the Education Refor m
Revolving Fund of the State Department of Education. Such programs
must be adjusted or discontinued according to available lottery
proceeds unless the Legislature by gen eral law establishes
eligibility requirements and appropriates specific funds theref or.
No surplus in the Oklahoma Education Lottery Trust Fund shall be
reduced or transferred to correct any nonl ottery deficiencies in
sums available for general appropriat ions. The provisions o f this
subsection shall not apply to bonds or other obligatio ns issued
pursuant to or to the repayment of bonds or other obligations issued
pursuant to the Oklahoma Higher E ducation Promise of Excellence Act
of 2005.
I. H. There is hereby created in the S tate Treasury a revolving
fund to be designated the "Oklahoma Education Lottery Revolving
Fund". The fund shall be a con tinuing fund, not subject to fiscal
year limitations, and shall consist of all monies received by the
Commission. The Commission shall make payments of net proceeds from
the fund to the Oklahoma Edu cation Lottery Trust Fund on or before
the fifteenth day of each calendar quarter as provided in subsection
C of this section. All monies accruing to the credit of the
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Oklahoma Education Lott ery Revolving Fund are hereby appropriated
and may be budgeted a nd expended for the payment of net proceeds,
prizes, commissions to retailers, administrative expenses and al l
other expenses arising out of the operation of the educati on
lottery, 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 Manage ment 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.
J. I. When appropriations from the Oklahoma Education Lottery
Trust Fund are made t o common education pursuant to the provisions
of subparagraph a of paragraph 1 of subsection E D of this section,
the appropriations shall be made available on a monthly basis. In
addition to the provisions of subsections C and D of this section,
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 Commissio n, on or before the ninth day of e ach
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month, shall transfer to the State Treasurer, fo r credit to the
Oklahoma Education Lottery Trust Fund, the amount of net proceed s
accruing during the preceding month equal to the amount of total
monthly collections due to common education as required b y
subparagraph a of paragraph 1 of subsection E D of this section;
2. The Director of the Office o f Management and Enterprise
Services shall allocat e the transfers provided for in paragraph 1 of
this subsection to the State Department of Edu cation 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 th e
specific fiscal year.
K. J. When appropriations from the Oklahoma Education Lottery
Trust Fund are made to The Oklahoma State System of Higher
Education, the appropriations shall be made available to the Sy stem
on a monthly basis. In addition to the pr ovisions of subsections C
and D of this section, t he following process shall be used to ensure
that the appropriations are made available to The O klahoma 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 Sys tem of Higher Education from the
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Oklahoma Education Lottery Trust Fund, the Commission, on or be fore
the ninth day of each month, shall transfer to the State T reasurer,
for credit to the Oklahoma Education Lottery Trust Fund, the amount
of net proceeds accruing during the preceding month equal to the
amount of total monthly collections due to the Okl ahoma State
Regents for Higher Education as required by subparagraph b of
paragraph 2 1 of subsection E D of this section;
2. The Director of the Office of Man agement and Enterprise
Services shall allocate t he 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 y ear; and
3. The total amount of transfers to th e Oklahoma Education
Lottery Trust Fund of net lottery proc eeds made pursuant to this
subsection shall not exce ed the total appropriations made to The
Oklahoma State System for Hig her Education from the Oklah oma
Education Lottery Trust Fund for the specifi c fiscal year.
SECTION 2. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 6-190.2 of Title 70, unless
there is created a duplication in numbering, reads as follows:
A. There is hereby created in the State Treasury a revolving
fund for the State Department of Education to be designated the
"Teacher Empowerment Revolving Fund". The revolving fund shall be a
continuing fund, without legislative appropriati on, not subject to
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fiscal year limitations, and shall be under the control and
management of the State Department of Education. Expenditures from
the Teacher Empowerment Revolving Fund shall be budgeted and
expended as provided for in subsection B of this section.
B. The State Department of Educ ation shall utilize the funds
for the program outlined in Section 6-190 of Title 70 of the
Oklahoma Statutes. Funding shall go toward advanced, lead, and
master certificate holders on a first-come, first-served basis until
the cash is exhausted for the school year. Funds from the Teacher
Empowerment Revolving Fund shall serve as a state match to local
dollars each school district contributes to their advanced, lead,
and master teachers as provided in Section 713 of Title 3A of the
Oklahoma Statutes.
SECTION 3. This act shall become effective November 1, 2022.
SECTION 4. The provisions of this act shall be contingent upon
the enactment of the provisions of House Bill No. 4387 of the 2nd
Session of the 58th Oklahoma Legislature and shall not become
operative as law otherwise.
COMMITTEE REPORT BY: COMMITTEE ON APPROPRIATIONS AND BUDGET , dated
03/02/2022 - DO PASS, As Amended and Coauthored.