58.1-4022 - State Lottery Fund.
§ 58.1-4022. State Lottery Fund.
A. All moneys received from the sale of lottery tickets or shares, lesspayment for prizes and compensation of agents as authorized by regulation andany other revenues received under this chapter, shall be placed in a specialfund known as the "State Lottery Fund." Notwithstanding any otherprovisions of law, interest earned from moneys in the State Lottery Fundshall accrue to the benefit of such Fund.
B. The total costs for the operation and administration of the lottery shallbe funded from the State Lottery Fund and shall be in such amount as providedin the general appropriation act. Appropriations to the Department during anyfiscal year beginning on and after July 1, 1989, exclusive of agentcompensation, shall at no time exceed ten percent of the total annualestimated gross revenues to be generated from lottery sales. However, shouldit be anticipated at any time by the Director that such operational andadministrative costs for a fiscal year will exceed the limitation providedherein, the Director shall immediately report such information to the Board,the Governor and the Chairmen of Senate Finance and House AppropriationsCommittees. From the moneys in the Fund, the Comptroller shall establish aspecial reserve fund in such amount as shall be provided by regulation of theDepartment for (i) operation of the lottery, (ii) use if the game's pay-outliabilities exceed its cash on hand, or (iii) enhancement of the prize poolwith income derived from lending securities held for payment of prizeinstallments, which lending of securities shall be conducted in accordancewith lending programs approved by the Department of the Treasury.
C. The Comptroller shall transfer to the Lottery Proceeds Fund establishedpursuant to § 58.1-4022.1, less the special reserve fund, the auditedbalances of the State Lottery Fund at the close of each fiscal year. Thetransfer for each year shall be made in two parts: (i) on or before June 30,the Comptroller shall transfer balances of the State Lottery Fund for thefiscal year, based on an estimate determined by the State Lottery Department,and (ii) no later than ten days after receipt of the annual audit reportrequired by § 58.1-4023, the Comptroller shall transfer to the LotteryProceeds Fund the remaining audited balances of the State Lottery Fund forthe fiscal year. If such annual audit discloses that the actual revenue isless than the estimate on which the transfer was based, the State Comptrollershall transfer the difference between the actual revenue and the estimatefrom the Lottery Proceeds Fund to the State Lottery Fund.
D. In addition to such other funds as may be appropriated, 100 percent of thelottery revenues transferred to the Lottery Proceeds Fund shall beappropriated entirely and solely for the purpose of public education in theCommonwealth unless otherwise redirected pursuant to Article X, Section 7-Aof the Constitution of Virginia. The additional appropriation of lotteryrevenues to local school divisions for public education purposes consistentwith this provision shall be used for operating, capital outlay, or debtservice expenses, as determined by the appropriation act. The additionalappropriation of lottery revenues shall not be used by any local schooldivision to reduce its total local expenditures for public education inaccordance with the provisions of the general appropriation act.
E. As a function of the administration of this chapter, funds may be expendedfor the purposes of reasonably informing the public concerning (i) the factsembraced in the subjects contained in subdivisions 1 through 7 of subsectionA of § 58.1-4007 and (ii) the fact that the net proceeds are paid into theLottery Proceeds Fund of the Commonwealth; but no funds shall be expended forthe primary purpose of inducing persons to participate in the lottery.
(1987, c. 531; 1989, c. 478; 1995, cc. 831, 852; 2002, cc. 829, 866.)