1 STATE OF OKLAHOMA
1
2 1st Session of the 59th Legislature (2023)
2
3 SENATE BILL 612 By: Howard
3
4
4
5
5
6 AS INTRODUCED
6
7 An Act relating to the Oklahoma Lottery; amending 3A
7 O.S. 2021, Sections 712, 713, as amended by Section
8 1, Chapter 359, O.S.L. 2022, 724, and 733 (3A O.S.
8 Supp. 2022, Section 713), which relate to the
9 Oklahoma Lottery Commission, prize claims, and the
9 board of trustees; expanding required background
10 checks for certain applicants; requiring annual
10 background checks for Commission employees; deleting
11 Commission requirement to pay for certain
11 investigations and contract with the Oklahoma State
12 Bureau of Investigation; deleting requirement to
12 submit certain report; deleting requirement to
13 display certain certificate; modifying certain
13 information required for submission; modifying
14 required date for submission of certain information;
14 modifying threshold for certain information required
15 to claim prize; modifying information required to
15 claim certain prize; amending 51 O.S. 2021, Section
16 24A.5, which relates to the Oklahoma Open Records
16 Act; providing exception; repealing 3A O.S. 2021,
17 Sections 706 and 734, which relate to Lottery
17 Retailer Advisory Board and Oklahoma Lottery
18 Commission Legislative Oversight Committee; updating
18 statutory reference; and providing an effective date.
19
19
20
20
21 BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
21
22 SECTION 1. AMENDATORY 3A O.S. 2021, Section 712, is
22
23 amended to read as follows:
23
24
24
Req. No. 637 Page 1
 1 Section 712. A. The executive director of the Oklahoma Lottery
1
2 Commission, with the approval of the board of trustees, shall employ
2
3 such personnel as may be necessary to carry out the provisions of
3
4 this act and shall set the compensation and terms of compensation of
4
5 such employees. All offices, positions, and personnel of the
5
6 Oklahoma Lottery Commission shall be in the unclassified service.
6
7 B. No employee of the Commission shall have a financial
7
8 interest in any vendor doing business or proposing to do business
8
9 with the Commission.
9
10 C. No employee of the Commission shall participate in any
10
11 decision involving a retailer with whom the employee has a financial
11
12 interest.
12
13 D. No employee of the Commission who leaves the employment of
13
14 the Commission may represent any vendor or lottery retailer before
14
15 the Commission for a period of two (2) years following termination
15
16 of employment with the Commission.
16
17 E. A background investigation shall be conducted on each
17
18 applicant who has reached the final selection process prior to
18
19 employment by the Commission at the level of division director and
19
20 above and at any level within any division of security and as
20
21 otherwise required by the board of trustees of the Oklahoma Lottery
21
22 Commission. The Commission shall pay for the actual cost of the
22
23 investigations and shall contract with the Oklahoma State Bureau of
23
24 Investigation for the performance of the investigations and on every
24
Req. No. 637 Page 2
 1 employee of the Commission for each calendar year. The results of
1
2 a background investigation shall not be considered a record open to
2
3 the public pursuant to the Oklahoma Open Records Act.
3
4 F. No person who has been convicted of any felony or a
4
5 misdemeanor involving illegal gambling or involving moral turpitude
5
6 shall be employed by the Commission, nor shall the Commission employ
6
7 a person who is awaiting sentencing on a plea of guilt or nolo
7
8 contendere to such a felony or misdemeanor.
8
9 G. The Commission shall bond Commission employees with access
9
10 to Commission funds or lottery revenue in an amount specified by the
10
11 board and may bond other employees as deemed necessary.
11
12 SECTION 2. AMENDATORY 3A O.S. 2021, Section 713, as
12
13 amended by Section 1, Chapter 359, O.S.L. 2022 (3A O.S. Supp. 2022,
13
14 Section 713), is amended to read as follows:
14
15 Section 713. A. All gross proceeds shall be the property of
15
16 the Oklahoma Lottery Commission. From its gross proceeds, the
16
17 Commission shall pay the operating expenses of the Commission. At
17
18 least forty-five percent (45%) of gross proceeds shall be made
18
19 available as prize money. However, the provisions of this
19
20 subsection shall be deemed not to create any lien, entitlement,
20
21 cause of action, or other private right, and any rights of holders
21
22 of tickets or shares shall be determined by the Commission in
22
23 setting the terms of its lottery or lotteries.
23
24
24
Req. No. 637 Page 3
 1 B. The Oklahoma Lottery Commission shall submit a written
1
2 report of its findings and any recommendations regarding the impact
2
3 of removing the requirement that net proceeds shall equal at least
3
4 thirty-five percent (35%) of the gross proceeds. The report shall
4
5 be submitted to the Governor, the Speaker of the Oklahoma House of
5
6 Representatives and the President Pro Tempore of the Oklahoma State
6
7 Senate not later than October 1, 2020, and annually thereafter.
7
8 C. There is hereby created in the State Treasury a fund to be
8
9 designated the “Oklahoma Education Lottery Trust Fund”. Except as
9
10 otherwise provided in subsections H G and I H of this section, on or
10
11 before the fifteenth day of each calendar quarter, the Commission
11
12 shall transfer to the State Treasurer, for credit to the Oklahoma
12
13 Education Lottery Trust Fund, the amount of all net proceeds
13
14 accruing during the preceding calendar quarter. Expenditures from
14
15 the fund shall be made upon warrants issued by the State Treasurer
15
16 against claims filed as prescribed by law with the Director of the
16
17 Office of Management and Enterprise Services for approval and
17
18 payment.
18
19 D. C. Upon their deposit into the State Treasury, any monies
19
20 representing a deposit of net proceeds shall then become the
20
21 unencumbered property of this state, and neither the Commission nor
21
22 the board of trustees shall have the power to agree or undertake
22
23 otherwise. The monies shall be invested by the State Treasurer in
23
24 accordance with state investment practices. All earnings
24
Req. No. 637 Page 4
 1 attributable to such investments shall likewise be the unencumbered
1
2 property of the state and shall accrue to the credit of the fund
2
3 provided for in subsection C B of this section.
3
4 1. The first Sixty-five Million Dollars ($65,000,000.00) of
4
5 monies contributed annually to the Oklahoma Education Lottery Trust
5
6 Fund shall only be appropriated as follows:
6
7 a. forty-five percent (45%) for the following:
7
8 (1) kindergarten through twelfth grade public
8
9 education, including but not limited to
9
10 compensation and benefits for public school
10
11 teachers and support employees, and
11
12 (2) early childhood development programs, which shall
12
13 include but not be limited to costs associated
13
14 with prekindergarten and full-day kindergarten
14
15 programs,
15
16 b. forty-five percent (45%) for the following:
16
17 (1) tuition grants, loans and scholarships to
17
18 citizens of this state to enable such citizens to
18
19 attend colleges and universities located within
19
20 this state, regardless of whether such colleges
20
21 and universities are owned or operated by the
21
22 Oklahoma State Regents for Higher Education, or
22
23 to attend institutions operated under the
23
24 authority of the Oklahoma Department of Career
24
Req. No. 637 Page 5
 1 and Technology Education; provided, such tuition
1
2 grants, loans and scholarships shall not be made
2
3 to a citizen of this state to attend a college or
3
4 university which is not accredited by the
4
5 Oklahoma State Regents for Higher Education,
5
6 (2) construction of educational facilities for
6
7 elementary school districts, independent school
7
8 districts, The Oklahoma State System of Higher
8
9 Education, and career and technology education,
9
10 (3) capital outlay projects for elementary school
10
11 districts, independent school districts, The
11
12 Oklahoma State System of Higher Education, and
12
13 career and technology education,
13
14 (4) technology for public elementary school district,
14
15 independent school district, state higher
15
16 education, and career and technology education
16
17 facilities, which shall include but not be
17
18 limited to costs of providing to teachers at
18
19 accredited public institutions who teach levels
19
20 kindergarten through twelfth grade, personnel at
20
21 technology centers under the authority of the
21
22 Oklahoma State Department of Career and
22
23 Technology Education, and professors and
23
24 instructors within The Oklahoma State System of
24
Req. No. 637 Page 6
 1 Higher Education, the necessary training in the
1
2 use and application of computers and advanced
2
3 electronic instructional technology to implement
3
4 interactive learning environments in the
4
5 classroom and to access the statewide distance
5
6 learning network and costs associated with
6
7 repairing and maintaining advanced electronic
7
8 instructional technology,
8
9 (5) endowed chairs for professors at institutions of
9
10 higher education operated by The Oklahoma State
10
11 System of Higher Education, and
11
12 (6) programs and personnel of the Oklahoma School for
12
13 the Deaf and the Oklahoma School for the Blind,
13
14 c. five percent (5%) to the School Consolidation and
14
15 Assistance Fund. When the total amount in the School
15
16 Consolidation and Assistance Fund from all sources
16
17 equals Five Million Dollars ($5,000,000.00), all
17
18 monies appropriated pursuant to this subparagraph
18
19 which would otherwise be deposited in the School
19
20 Consolidation and Assistance Fund in excess of Five
20
21 Million Dollars ($5,000,000.00) shall be allocated by
21
22 the State Department of Education to public schools
22
23 based on the audited end-of-year average daily
23
24 membership in grades 8 through 12 during the preceding
24
Req. No. 637 Page 7
 1 school year for the purpose of purchasing technology
1
2 equipment. If at any time the total amount in the
2
3 School Consolidation and Assistance Fund drops below
3
4 Five Million Dollars ($5,000,000.00), the monies
4
5 appropriated pursuant to this subparagraph shall be
5
6 deposited in the School Consolidation and Assistance
6
7 Fund until the Fund again reaches Five Million Dollars
7
8 ($5,000,000.00), and
8
9 d. five percent (5%) to the Teachers’ Retirement System
9
10 Dedicated Revenue Revolving Fund.
10
11 In no instance shall the annual maximum percentage for
11
12 administrative costs, not including marketing and advertising costs,
12
13 funds set aside for prizes, commissions paid to retailers, contract
13
14 fees paid to gaming system vendors and instant ticket providers or
14
15 emergency-related capital expenses, exceed three percent (3%) of
15
16 sales.
16
17 2. The remaining portion of lottery annual net proceeds
17
18 deposited to the Oklahoma Education Lottery Trust Fund that exceeds
18
19 Sixty-five Million Dollars ($65,000,000.00) shall be deposited to
19
20 the credit of the Teacher Empowerment Revolving Fund created in
20
21 Section 2 of this act.
21
22 E. D. The Legislature shall appropriate funds from the Oklahoma
22
23 Education Lottery Trust Fund only for the purposes specified in
23
24 subsection D C of this section. Even when funds from the trust fund
24
Req. No. 637 Page 8
 1 are used for these purposes, the Legislature shall not use funds
1
2 from the trust fund to supplant or replace other state funds
2
3 supporting common education, higher education, or career and
3
4 technology education.
4
5 F. E. In order to ensure that the funds from the trust fund are
5
6 used to enhance and not supplant funding for education, the State
6
7 Board of Equalization shall examine and investigate appropriations
7
8 from the trust fund each year. At the meeting of the State Board of
8
9 Equalization held within five (5) days after the monthly
9
10 apportionment in February of each year, the State Board of
10
11 Equalization shall issue a finding and report which shall state
11
12 whether appropriations from the trust fund were used to enhance or
12
13 supplant education funding. If the State Board of Equalization
13
14 finds that education funding was supplanted by funds from the trust
14
15 fund, the Board shall specify the amount by which education funding
15
16 was supplanted. In this event, the Legislature shall not make any
16
17 appropriations for the ensuing fiscal year until an appropriation in
17
18 that amount is made to replenish the trust fund.
18
19 G. F. Except as otherwise provided by this subsection, no
19
20 deficiency in the Oklahoma Education Lottery Trust Fund shall be
20
21 replenished by reducing any nonlottery funds including, specifically
21
22 but without limitation, the General Revenue Fund, the Constitutional
22
23 Reserve Fund, or the Education Reform Revolving Fund of the State
23
24 Department of Education. No program or project started specifically
24
Req. No. 637 Page 9
 1 from lottery proceeds shall be continued from the General Revenue
1
2 Fund, the Constitutional Reserve Fund, or the Education Reform
2
3 Revolving Fund of the State Department of Education. Such programs
3
4 must be adjusted or discontinued according to available lottery
4
5 proceeds unless the Legislature by general law establishes
5
6 eligibility requirements and appropriates specific funds therefor.
6
7 No surplus in the Oklahoma Education Lottery Trust Fund shall be
7
8 reduced or transferred to correct any nonlottery deficiencies in
8
9 sums available for general appropriations. The provisions of this
9
10 subsection shall not apply to bonds or other obligations issued
10
11 pursuant to or to the repayment of bonds or other obligations issued
11
12 pursuant to the Oklahoma Higher Education Promise of Excellence Act
12
13 of 2005.
13
14 H. G. There is hereby created in the State Treasury a revolving
14
15 fund to be des