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H0674..........................................................by EDUCATION
SCHOOL DISTRICT BUILDING ACCOUNT - Amends existing law relating to
distribution of the lottery dividends to provide that proceeds in excess of
$17,000,000 of the net income shall be transferred to the School District
Building Account and be available for distribution upon application.
02/22 House intro - 1st rdg - to printing
02/25 Rpt prt - to Educ
|||| LEGISLATURE OF THE STATE OF IDAHO ||||
Fifty-sixth Legislature Second Regular Session - 2002
IN THE HOUSE OF REPRESENTATIVES
HOUSE BILL NO. 674
BY EDUCATION COMMITTEE
1 AN ACT
2 RELATING TO LOTTERY DIVIDENDS; AMENDING SECTION 67-7434, IDAHO CODE, TO PRO-
3 VIDE THAT PROCEEDS IN EXCESS OF SEVENTEEN MILLION DOLLARS OF NET INCOME OF
4 THE LOTTERY SHALL BE TRANSFERRED TO THE SCHOOL DISTRICT BUILDING ACCOUNT
5 AND TO STRIKE OBSOLETE PROVISIONS; AND AMENDING SECTION 33-905, IDAHO
6 CODE, TO PROVIDE THAT MONEYS SHALL BE AVAILABLE FOR DISTRIBUTION UPON
7 APPLICATION AND TO PROVIDE A CORRECT REFERENCE.
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 the first seventeen million dollars ($17,000,000) of its
13 net income to the permanent building account and one-half (1/2) of the first
14 seventeen million dollars ($17,000,000) of its net income to the school dis-
15 trict building account, after reserving sufficient moneys to ensure the con-
16 tinuation of the lottery, as determined by the director and commission. Any
17 amount of net income exceeding seventeen million dollars ($17,000,000) shall
18 be transferred to the school district building account to be expended in the
19 manner provided in section 33-905 3., Idaho Code.
20 A one (1) time allotment of two hundred thousand dollars ($200,000) of the
21 lottery's first year dividends shall be allocated and used by the permanent
22 building fund advisory council for the construction of a Vietnam veterans
23 memorial in the state.
24 SECTION 2. That Section 33-905, Idaho Code, be, and the same is hereby
25 amended to read as follows:
26 33-905. SCHOOL DISTRICT BUILDING ACCOUNT -- PAYMENTS TO ACCOUNT -- MONEYS
27 APPROPRIATED TO STATE BOARD -- APPLICATION FOR MONEYS -- PAYMENTS TO DISTRICTS
28 -- REPORTS ON APPLICATIONS -- USES OF MONEYS. 1. The state of Idaho, recogniz-
29 ing its responsibility to establish and maintain a general, uniform and thor-
30 ough system of public, free common schools, in an effort to partially fulfill
31 this responsibility, hereby creates and establishes the school district build-
32 ing account in the state treasury. The school district building account shall
33 have paid into it such appropriations or revenues as may be provided by law.
34 2. Moneys in the school district building account are hereby appropriated
35 to and may be expended by the state board of education at any time for the
36 purposes provided in this section, any provision of chapter 35, title 67,
37 Idaho Code, or chapter 36, title 67, Idaho Code, notwithstanding.
38 3. (a) As to any moneys in the account other than lottery dividends dis-
39 tributed pursuant to subsection 4. of this section, the board of trustees
40 of any school district may apply to the state board of education to
41 receive a payment or payments from the school district building account;
2
1 provided, a district demonstrates to the state board of education that it
2 has a substantial and serious need based upon the district's classroom
3 student-teacher ratios, past efforts to levy for such construction, physi-
4 cal condition of existing structures, and the total assessed market value
5 of the district, all of which shall be further defined by actual need cri-
6 teria established by the state board of education.
7 (b) When an application for moneys from the account is approved by the
8 state board of education, the state board shall inform the school district
9 that the application has been approved, citing the amount approved for
10 payment and an estimate of the time when the payment can actually be made
11 to the school district.
12 4. By not later than August 31, moneys in the account pursuant to distri-
13 bution from of one-half (1/2) of the first seventeen million dollars
14 ($17,000,000) of net proceeds from the state lottery as provided in section
15 67-7434, Idaho Code, the lottery dividends and interest earned thereon, shall
16 be distributed to each of the several school districts, in the proportion that
17 the average daily attendance of that district for the previous school year
18 bears to the total average daily attendance of the state during the previous
19 school year. For the purposes of this subsection 4. only, the Idaho school for
20 the deaf and blind shall be considered a school district, and shall receive a
21 distribution based upon the average daily attendance of the school. Average
22 daily attendance shall be calculated as provided in section 33-1002 45., Idaho
23 Code.
24 5. All payments from the school district building account shall be paid
25 out directly to the school district in warrants drawn by the state controller
26 upon presentation of proper vouchers from the state board of education. Pend-
27 ing payments out of the school district building account, the moneys in the
28 account shall be invested by the state treasurer in the same manner as pro-
29 vided under section 67-1210, Idaho Code, with respect to other idle moneys in
30 the state treasury. Interest earned on the investments shall be returned to
31 the school district building account.
32 6. Payments from the school district building account received by a
33 school district shall be first applied to the abatement of any unsafe or
34 unhealthy conditions identified pursuant to section 33-1613, Idaho Code, and,
35 thereafter, may be used by the school district for the purposes authorized in
36 section 33-1102, Idaho Code.
37 7. (a) By not later than December 1, each school district shall report to
38 the state department of education the projects on which moneys received
39 from the school district building account were expended. The state depart-
40 ment of education shall transmit a summary of such reports to the legisla-
41 ture by not later than January 15 of the following year.
42 (b) By not later than December 1, each school district shall report to
43 the state department of education the planned uses for the moneys received
44 from the school district building account. The state department of educa-
45 tion shall transmit a summary of the reports to the legislature by not
46 later than January 15 of the following year.
STATEMENT OF PURPOSE
RS 12139
This bill adjusts the way that lottery income over the amount of 17
million dollars is distributed. It leaves the present system of
distribution intact (1/2 to permanent building fund, « to the school
district building account) and adds a provision that the school
district half of the moneys first be applied to the abatement of
unsafe or unhealthy conditions pursuant to section 33-1613, Idaho
Code. Further, income over 17 million dollars will be moved into the
school district building account in a way that the state board of
education may grant this money to applying districts with
substantial facility needs based on several hardship factors. It
also removes obsolete language that only applied to the first year
that the lottery was in effect.
FISCAL IMPACT
No fiscal impact to the total general fund. The lottery generated an
income of 15 million dollars in fiscal year 2002.
Contact
Name: Rep. Steve Smylie
Phone: 332-1000
STATEMENT OF PURPOSE/FISCAL NOTE H 674