Kentucky Statutes 154A.130 – Deposit of moneys — Expenditures and investments authorized — Allocation of funds — Transfer of revenues to general fund — Lottery trust account — Credit from general fund to literacy fund and higher education schola…
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(1) All money received by the corporation from the sale of lottery tickets and all other sources shall be deposited into a corporate operating account. The corporation is authorized to use all money in the corporate operating account for the purposes of paying prizes and the necessary expenses of the corporation and dividends to the state. The corporation shall allocate the amount to be paid by the corporation to prize winners. The amount in the corporate operating account which the corporation anticipates will be available for the payment of prizes on an annuity basis may be invested in direct United States Treasury obligations. These instruments may be in varying maturities with respect to payment of annuities and may be in book-entry form. Monthly, no later than the last business day of the succeeding month, the corporation shall transfer to a lottery trust fund the amount of net revenues which the corporation determines are surplus to its needs. These funds shall be held in trust until 1990 at which time the General Assembly shall determine the manner in which the funds will be allocated and appropriated. The net revenues shall be determined by deducting from gross revenues the payment costs incurred in the operation and administration of the lottery, including the expenses of the corporation and the costs resulting from any contract or contracts entered into for promotional, advertising, or operational services or for the purchase or lease of lottery equipment and materials, fixed capital outlays, and the payment of prizes to the holders of winning tickets. After the start-up costs are paid, it is the intent of the Legislature that it shall be the goal of the corporation to transfer each year thirty- five percent (35%) of gross revenues to the general fund for the purposes stated above.
(2) A Kentucky lottery trust account is established in the State Treasury. Net lottery revenues shall be credited to this restricted account as provided in subsection (1) of this section. Moneys credited to the Kentucky lottery trust account shall be invested by the state in accordance with state investment practices and all earnings from the investments shall accrue to this account. No moneys shall be allotted or expended from this account unless pursuant to an appropriation by the General Assembly, except that moneys as are needed shall be transferred to the general fund pursuant to the provisions of the Acts of the Extraordinary Session of the 1988 General Assembly. Moneys in the Kentucky lottery trust account shall not lapse at the close of the state fiscal year.
(3) Each fiscal year, three million dollars ($3,000,000) from net lottery revenues from the sale of lottery tickets shall be credited from the general fund as follows:
(a) To the Collaborative Center for Literacy Development, one million two hundred thousand dollars ($1,200,000); and
(b) To the reading diagnostic and intervention fund, one million eight hundred thousand dollars ($1,800,000).
(4) After the allocation of three million dollars ($3,000,000) to literacy development, as provided in subsection (3) of this section, net lottery revenues from the sale of lottery tickets shall be credited from the general fund as follows:
(a) To the Wallace G. Wilkinson Kentucky educational excellence scholarship trust fund established in KRS § 164.7877:
1. Forty percent (40%) in fiscal year 2003-2004; and
2. Forty-five percent (45%) in fiscal year 2004-2005 and each fiscal year thereafter; and
(b) To the College Access Program and the Kentucky Tuition Grants Program established in KRS Chapter 164:
1. Forty percent (40%) in fiscal year 2003-2004;
2. Forty-five percent (45%) in fiscal year 2004-2005; and
3. Fifty-five percent (55%) of net lottery revenues in fiscal year 2005-2006 and each fiscal year thereafter.
(5) The Auditor of Public Accounts shall be responsible for a financial postaudit of the books and records of the corporation. The postaudit shall be conducted in accordance with generally accepted accounting principles, shall be paid for by the corporation, and shall be completed within ninety (90) days of the close of the corporation’s fiscal year. The Auditor of Public Accounts shall contract with an independent, certified public accountant who meets the qualifications existing to do business within the Commonwealth of Kentucky to perform the corporation postaudit. The Auditor of Public Accounts shall remain responsible for the annual postaudit and the corporation shall pay all audit costs. The Auditor of Public Accounts may at any time conduct additional audits, including performance audits, of the corporation as he deems necessary or desirable. Contracts shall be entered into for audit services for a period not to exceed five (5) years and the same firm shall not receive two (2) consecutive audit contracts. All audits shall be filed with the Governor, the President of the Senate, and the Speaker of the House of Representatives. The corporation shall reimburse the Auditor of Public Accounts for the reasonable costs of any audits performed by him. The corporation shall cooperate with the Auditor of Public Accounts by giving employees designated by any of them access to facilities of the corporation for the purpose of efficient compliance with their respective responsibilities. With respect to any reimbursement that the corporation is required to pay to any agency, the corporation shall enter into an agreement with that agency under which the corporation shall pay to the agency an amount reasonably anticipated to cover the reimbursable expenses in advance of the expenses being incurred.
(6) By no later than December 31 of each year, in an advertisement at least one-fourth (1/4) of a page in size, the Kentucky Lottery Corporation shall publish the following information in every general-circulation daily newspaper published in Kentucky:
(a) The statements of revenue, expenses, and changes in retained earnings as shown in the most recent annual audit report. It shall be explained that the transfer of dividends is the amount of lottery earnings transferred to the
general fund;
(b) A statement identifying the auditing firm;
(c) A telephone number which citizens may call to obtain a complete copy of the annual audit report; and
(d) The name of the president/chief executive officer of the Kentucky Lottery
Corporation and a complete list of board members.
The Kentucky Lottery Corporation shall pay for the cost of the advertisement.
Effective: March 18, 2005
History: Amended 2005 Ky. Acts ch. 127, sec. 6, effective March 18, 2005. — Amended 2000 Ky. Acts ch. 13, sec. 6, effective July 14, 2000. — Amended 1998
Ky. Acts ch. 185, sec. 1, effective July 15, 1998; and ch. 575, sec. 7, effective July
15, 1998. — Amended 1994 Ky. Acts ch. 170, sec. 8, effective July 15, 1994; and ch.
486, sec. 27, effective July 15, 1994. — Created 1988 (1st Extra. Sess.) Ky. Acts ch.
1, sec. 20, effective December 15, 1988.
2022-2024 Budget Reference. See State/Executive Branch Budget, 2022 Ky. Acts ch.
199, Pt. I, C, 2, (5) at 1659.
2022-2024 Budget Reference. See State/Executive Branch Budget, 2022 Ky. Acts ch.
199, Pt. I, C, 3, (11) at 1661.
2022-2024 Budget Reference. See State/Executive Branch Budget, 2022 Ky. Acts ch.
199, Pt. I, J, 2, (1) at 1693.
2022-2024 Budget Reference. See State/Executive Branch Budget, 2022 Ky. Acts ch.
199, Pt. I, J, 2, (2) at 1693.
2022-2024 Budget Reference. See State/Executive Branch Budget, 2022 Ky. Acts ch.
199, Pt. I, J, 2, (3) at 1693.
2022-2024 Budget Reference. See State/Executive Branch Budget, 2022 Ky. Acts ch.
199, Pt. I, J, 2, (4) at 1693.
2022-2024 Budget Reference. See State/Executive Branch Budget, 2022 Ky. Acts ch.
199, Pt. I, J, 2, (5) at 1693.
2022-2024 Budget Reference. See State/Executive Branch Budget, 2022 Ky. Acts ch.
199, Pt. I, J, 2, (6) at 1693.
2022-2024 Budget Reference. See State/Executive Branch Budget, 2022 Ky. Acts ch.
199, Pt. I, J, 2, (9) at 1694.
2022-2024 Budget Reference. See State/Executive Branch Budget, 2022 Ky. Acts ch.
199, Pt. I, J, 2, (11) at 1694.
2022-2024 Budget Reference. See State/Executive Branch Budget, 2022 Ky. Acts ch.
199, Pt. I, J, 8, (1) at 1697.
Legislative Research Commission Note (3/18/2005). 2005 Ky. Acts ch. 127, which included an amendment to this section, KRS § 154A.130, provides that the Act shall be cited as the “Read to Achieve Act of 2005.”
Legislative Research Commission Note (1988). Although the compulsive gambling study fund was deleted by Senate floor amendment 28, inadvertently the reference to such fund in subsection (1) of this section was not deleted. The Reviser of Statutes, pursuant to KRS § 7.136, has removed the language pertaining to this fund to conform.
(2) A Kentucky lottery trust account is established in the State Treasury. Net lottery revenues shall be credited to this restricted account as provided in subsection (1) of this section. Moneys credited to the Kentucky lottery trust account shall be invested by the state in accordance with state investment practices and all earnings from the investments shall accrue to this account. No moneys shall be allotted or expended from this account unless pursuant to an appropriation by the General Assembly, except that moneys as are needed shall be transferred to the general fund pursuant to the provisions of the Acts of the Extraordinary Session of the 1988 General Assembly. Moneys in the Kentucky lottery trust account shall not lapse at the close of the state fiscal year.
Terms Used In Kentucky Statutes 154A.130
- Amendment: A proposal to alter the text of a pending bill or other measure by striking out some of it, by inserting new language, or both. Before an amendment becomes part of the measure, thelegislature must agree to it.
- Annuity: A periodic (usually annual) payment of a fixed sum of money for either the life of the recipient or for a fixed number of years. A series of payments under a contract from an insurance company, a trust company, or an individual. Annuity payments are made at regular intervals over a period of more than one full year.
- branch budget: means an enactment by the General Assembly which provides appropriations and establishes fiscal policies and conditions for the biennial financial plan for the judicial branch, the legislative branch, and the executive branch, which shall include a separate budget bill for the Transportation Cabinet. See Kentucky Statutes 446.010
- Contract: A legal written agreement that becomes binding when signed.
- Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
- Corporation: means the Kentucky Lottery Corporation. See Kentucky Statutes 154A.010
- Fiscal year: The fiscal year is the accounting period for the government. For the federal government, this begins on October 1 and ends on September 30. The fiscal year is designated by the calendar year in which it ends; for example, fiscal year 2006 begins on October 1, 2005 and ends on September 30, 2006.
- Floor amendment: An amendment offered by an individual legisator from the floor during consideration of a bill or other measure, in contrast to a committee amendment.
- Lease: A contract transferring the use of property or occupancy of land, space, structures, or equipment in consideration of a payment (e.g., rent). Source: OCC
- Lottery: means any game of chance approved by the corporation and operated pursuant to this chapter, except for games prohibited by the General Assembly as provided for in KRS §. See Kentucky Statutes 154A.010
- Month: means calendar month. See Kentucky Statutes 446.010
- Outlays: Outlays are payments made (generally through the issuance of checks or disbursement of cash) to liquidate obligations. Outlays during a fiscal year may be for payment of obligations incurred in prior years or in the same year.
- President: means the president of the Kentucky Lottery Corporation who shall also serve as chief executive officer of the corporation. See Kentucky Statutes 154A.010
- State: when applied to a part of the United States, includes territories, outlying possessions, and the District of Columbia. See Kentucky Statutes 446.010
- Trust account: A general term that covers all types of accounts in a trust department, such as estates, guardianships, and agencies. Source: OCC
- Year: means calendar year. See Kentucky Statutes 446.010
(3) Each fiscal year, three million dollars ($3,000,000) from net lottery revenues from the sale of lottery tickets shall be credited from the general fund as follows:
(a) To the Collaborative Center for Literacy Development, one million two hundred thousand dollars ($1,200,000); and
(b) To the reading diagnostic and intervention fund, one million eight hundred thousand dollars ($1,800,000).
(4) After the allocation of three million dollars ($3,000,000) to literacy development, as provided in subsection (3) of this section, net lottery revenues from the sale of lottery tickets shall be credited from the general fund as follows:
(a) To the Wallace G. Wilkinson Kentucky educational excellence scholarship trust fund established in KRS § 164.7877:
1. Forty percent (40%) in fiscal year 2003-2004; and
2. Forty-five percent (45%) in fiscal year 2004-2005 and each fiscal year thereafter; and
(b) To the College Access Program and the Kentucky Tuition Grants Program established in KRS Chapter 164:
1. Forty percent (40%) in fiscal year 2003-2004;
2. Forty-five percent (45%) in fiscal year 2004-2005; and
3. Fifty-five percent (55%) of net lottery revenues in fiscal year 2005-2006 and each fiscal year thereafter.
(5) The Auditor of Public Accounts shall be responsible for a financial postaudit of the books and records of the corporation. The postaudit shall be conducted in accordance with generally accepted accounting principles, shall be paid for by the corporation, and shall be completed within ninety (90) days of the close of the corporation’s fiscal year. The Auditor of Public Accounts shall contract with an independent, certified public accountant who meets the qualifications existing to do business within the Commonwealth of Kentucky to perform the corporation postaudit. The Auditor of Public Accounts shall remain responsible for the annual postaudit and the corporation shall pay all audit costs. The Auditor of Public Accounts may at any time conduct additional audits, including performance audits, of the corporation as he deems necessary or desirable. Contracts shall be entered into for audit services for a period not to exceed five (5) years and the same firm shall not receive two (2) consecutive audit contracts. All audits shall be filed with the Governor, the President of the Senate, and the Speaker of the House of Representatives. The corporation shall reimburse the Auditor of Public Accounts for the reasonable costs of any audits performed by him. The corporation shall cooperate with the Auditor of Public Accounts by giving employees designated by any of them access to facilities of the corporation for the purpose of efficient compliance with their respective responsibilities. With respect to any reimbursement that the corporation is required to pay to any agency, the corporation shall enter into an agreement with that agency under which the corporation shall pay to the agency an amount reasonably anticipated to cover the reimbursable expenses in advance of the expenses being incurred.
(6) By no later than December 31 of each year, in an advertisement at least one-fourth (1/4) of a page in size, the Kentucky Lottery Corporation shall publish the following information in every general-circulation daily newspaper published in Kentucky:
(a) The statements of revenue, expenses, and changes in retained earnings as shown in the most recent annual audit report. It shall be explained that the transfer of dividends is the amount of lottery earnings transferred to the
general fund;
(b) A statement identifying the auditing firm;
(c) A telephone number which citizens may call to obtain a complete copy of the annual audit report; and
(d) The name of the president/chief executive officer of the Kentucky Lottery
Corporation and a complete list of board members.
The Kentucky Lottery Corporation shall pay for the cost of the advertisement.
Effective: March 18, 2005
History: Amended 2005 Ky. Acts ch. 127, sec. 6, effective March 18, 2005. — Amended 2000 Ky. Acts ch. 13, sec. 6, effective July 14, 2000. — Amended 1998
Ky. Acts ch. 185, sec. 1, effective July 15, 1998; and ch. 575, sec. 7, effective July
15, 1998. — Amended 1994 Ky. Acts ch. 170, sec. 8, effective July 15, 1994; and ch.
486, sec. 27, effective July 15, 1994. — Created 1988 (1st Extra. Sess.) Ky. Acts ch.
1, sec. 20, effective December 15, 1988.
2022-2024 Budget Reference. See State/Executive Branch Budget, 2022 Ky. Acts ch.
199, Pt. I, C, 2, (5) at 1659.
2022-2024 Budget Reference. See State/Executive Branch Budget, 2022 Ky. Acts ch.
199, Pt. I, C, 3, (11) at 1661.
2022-2024 Budget Reference. See State/Executive Branch Budget, 2022 Ky. Acts ch.
199, Pt. I, J, 2, (1) at 1693.
2022-2024 Budget Reference. See State/Executive Branch Budget, 2022 Ky. Acts ch.
199, Pt. I, J, 2, (2) at 1693.
2022-2024 Budget Reference. See State/Executive Branch Budget, 2022 Ky. Acts ch.
199, Pt. I, J, 2, (3) at 1693.
2022-2024 Budget Reference. See State/Executive Branch Budget, 2022 Ky. Acts ch.
199, Pt. I, J, 2, (4) at 1693.
2022-2024 Budget Reference. See State/Executive Branch Budget, 2022 Ky. Acts ch.
199, Pt. I, J, 2, (5) at 1693.
2022-2024 Budget Reference. See State/Executive Branch Budget, 2022 Ky. Acts ch.
199, Pt. I, J, 2, (6) at 1693.
2022-2024 Budget Reference. See State/Executive Branch Budget, 2022 Ky. Acts ch.
199, Pt. I, J, 2, (9) at 1694.
2022-2024 Budget Reference. See State/Executive Branch Budget, 2022 Ky. Acts ch.
199, Pt. I, J, 2, (11) at 1694.
2022-2024 Budget Reference. See State/Executive Branch Budget, 2022 Ky. Acts ch.
199, Pt. I, J, 8, (1) at 1697.
Legislative Research Commission Note (3/18/2005). 2005 Ky. Acts ch. 127, which included an amendment to this section, KRS § 154A.130, provides that the Act shall be cited as the “Read to Achieve Act of 2005.”
Legislative Research Commission Note (1988). Although the compulsive gambling study fund was deleted by Senate floor amendment 28, inadvertently the reference to such fund in subsection (1) of this section was not deleted. The Reviser of Statutes, pursuant to KRS § 7.136, has removed the language pertaining to this fund to conform.