Print Friendly HOUSE BILL NO. 532 – Lottery money/school dist bldg acct
HOUSE BILL NO. 532
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LOTTERY MONEYS - SCHOOLS - Amends existing law to provide that net income
of the lottery shall be transferred to the School District Building
Account; and to specify use of the moneys in the School District Building
Account for abatement of unsafe or unhealthy conditions after 2003.
01/31 House intro - 1st rdg - to printing
02/01 Rpt prt - to Approp
02/08 Rpt out - Ref'd to Educ
|||| LEGISLATURE OF THE STATE OF IDAHO ||||
Fifty-sixth Legislature Second Regular Session - 2002
IN THE HOUSE OF REPRESENTATIVES
HOUSE BILL NO. 532
BY EDUCATION COMMITTEE
1 AN ACT
2 RELATING TO LOTTERY DIVIDENDS; AMENDING SECTION 67-7434, IDAHO CODE, TO PRO-
3 VIDE THAT THE NET INCOME OF THE LOTTERY SHALL BE TRANSFERRED TO THE SCHOOL
4 DISTRICT BUILDING ACCOUNT AND TO STRIKE OBSOLETE PROVISIONS; AMENDING SEC-
5 TION 33-905, IDAHO CODE, TO PROVIDE THAT MONEYS SHALL BE APPLIED TO ABATE-
6 MENT OF UNSAFE OR UNHEALTHY CONDITIONS AND TO PROVIDE A CORRECT REFERENCE;
7 AND PROVIDING AN EFFECTIVE DATE.
8 Be It Enacted by the Legislature of the State of Idaho:
9 SECTION 1. That Section 67-7434, Idaho Code, be, and the same is hereby
10 amended to read as follows:
11 67-7434. LOTTERY DIVIDENDS. Annually, on July 1, the lottery shall trans-
12 fer one-half (1/2) of its net income to the permanent building account and
13 one-half (1/2) of its net income to the school district building account,
14 after reserving sufficient moneys to ensure the continuation of the lottery,
15 as determined by the director and commission.
16 A one (1) time allotment of two hundred thousand dollars ($200,000) of the
17 lottery's first year dividends shall be allocated and used by the permanent
18 building fund advisory council for the construction of a Vietnam veterans
19 memorial in the state.
20 SECTION 2. That Section 33-905, Idaho Code, be, and the same is hereby
21 amended to read as follows:
22 33-905. SCHOOL DISTRICT BUILDING ACCOUNT -- PAYMENTS TO ACCOUNT -- MONEYS
23 APPROPRIATED TO STATE BOARD -- APPLICATION FOR MONEYS -- PAYMENTS TO DISTRICTS
24 -- REPORTS ON APPLICATIONS -- USES OF MONEYS. 1. The state of Idaho, recogniz-
25 ing its responsibility to establish and maintain a general, uniform and thor-
26 ough system of public, free common schools, in an effort to partially fulfill
27 this responsibility, hereby creates and establishes the school district build-
28 ing account in the state treasury. The school district building account shall
29 have paid into it such appropriations or revenues as may be provided by law.
30 2. Moneys in the school district building account are hereby appropriated
31 to and may be expended by the state board of education at any time for the
32 purposes provided in this section, any provision of chapter 35, title 67,
33 Idaho Code, or chapter 36, title 67, Idaho Code, notwithstanding.
34 3. (a) As to any moneys in the account other than lottery dividends dis-
35 tributed pursuant to subsection 4. of this section, the board of trustees
36 of any school district may apply to the state board of education to
37 receive a payment or payments from the school district building account;
38 provided, a district demonstrates to the state board of education that it
39 has a substantial and serious need based upon the district's classroom
40 student-teacher ratios, past efforts to levy for such construction, physi-
41 cal condition of existing structures, and the total assessed market value
1 of the district, all of which shall be further defined by actual need cri-
2 teria established by the state board of education.
3 (b) When an application for moneys from the account is approved by the
4 state board of education, the state board shall inform the school district
5 that the application has been approved, citing the amount approved for
6 payment and an estimate of the time when the payment can actually be made
7 to the school district.
8 4. By not later than August 31, moneys in the account pursuant to distri-
9 bution from section 67-7434, Idaho Code, the lottery dividends and interest
10 earned thereon, shall be distributed to each of the several school districts,
11 in the proportion that the average daily attendance of that district for the
12 previous school year bears to the total average daily attendance of the state
13 during the previous school year. For the purposes of this subsection 4. only,
14 the Idaho school for the deaf and blind shall be considered a school district,
15 and shall receive a distribution based upon the average daily attendance of
16 the school. Average daily attendance shall be calculated as provided in sec-
17 tion 33-1002 45., Idaho Code.
18 5. All payments from the school district building account shall be paid
19 out directly to the school district in warrants drawn by the state controller
20 upon presentation of proper vouchers from the state board of education. Pend-
21 ing payments out of the school district building account, the moneys in the
22 account shall be invested by the state treasurer in the same manner as pro-
23 vided under section 67-1210, Idaho Code, with respect to other idle moneys in
24 the state treasury. Interest earned on the investments shall be returned to
25 the school district building account.
26 6. Payments from the school district building account received by a
27 school district shall be first applied to the abatement of any unsafe or
28 unhealthy conditions identified pursuant to section 33-1613, Idaho Code, and,
29 thereafter, may be used by the school district for the purposes authorized in
30 section 33-1102, Idaho Code.
31 7. (a) By not later than December 1, each school district shall report to
32 the state department of education the projects on which moneys received
33 from the school district building account were expended. The state depart-
34 ment of education shall transmit a summary of such reports to the legisla-
35 ture by not later than January 15 of the following year.
36 (b) By not later than December 1, each school district shall report to
37 the state department of education the planned uses for the moneys received
38 from the school district building account. The state department of educa-
39 tion shall transmit a summary of the reports to the legislature by not
40 later than January 15 of the following year.
41 SECTION 3. This act shall be in full force and effect on and after July
42 1, 2003.
STATEMENT OF PURPOSE
This bill will adjust the way that lottery income is distributed.
It will put the net income of the lottery into the school
district building account and add a provision that these moneys
first be applied to the abatement of unsafe or unhealthy
conditions pursuant to section 33-1613, Idaho Code. It also
removes obsolete language that only applied to the first year
that the lottery was in effect. It will become effective July
The fiscal impact to the total general fund will be neutral since
the bill only shifts the proportion of funds into which the net
income from the lottery is placed. In fiscal year 2002, the
allocation to the school district building account from the
lottery was 7.5 million dollars. The lottery generated total
dividends of 15 million dollars in fiscal year 2002.
Name: Rep. Steve Smylie
STATEMENT OF PURPOSE/FISCAL NOTE H 532