1031-S AMH HUNT MATT 033

SHB 1031 - H AMD

By Representative Hunter

   On page 3, line 22, strike all of section 4 and insert the following:

   "Sec. 4. RCW 67.70.240 and 2001 c 3 s 4 (Initiative Measure No. 728, approved November 7, 2000) are each amended to read as follows:

   The moneys in the state lottery account shall be used only:

   (1) For the payment of prizes to the holders of winning lottery tickets or shares;

   (2) For purposes of making deposits into the reserve account created by RCW 67.70.250 and into the lottery administrative account created by RCW 67.70.260;

   (3) For purposes of making deposits into the education construction fund and student achievement fund created in RCW 43.135.045. For the transition period from July 1, 2001, until and including June 30, 2002, fifty percent of the moneys not otherwise obligated under this section shall be placed in the student achievement fund and fifty percent of these moneys shall be placed in the education construction fund. On and after July 1, 2002, until June 30, 2004, seventy-five percent of these moneys shall be placed in the student achievement fund and twenty-five percent shall be placed in the education construction fund. On and after July 1, 2004, all deposits not otherwise obligated under this section shall be placed in the education construction fund. Moneys in the state lottery account deposited in the education construction fund and the student achievement fund are included in "general state revenues" under RCW 39.42.070;

   (4)(a) For distribution to a county for the purpose of paying the principal and interest payments on bonds issued by the county to construct a baseball stadium, as defined in RCW 82.14.0485, including reasonably necessary preconstruction costs((.)), and in fiscal year 2006 and thereafter, for the purposes of making deposits to the problem gambling account created in section 3 of this act. Three million dollars shall be ((distributed))allocated for distribution under this subsection during calendar year 1996. During subsequent years, such ((distributions)) allocations shall equal the prior year's ((distributions)) allocation increased by four percent. The amount allocated following the cessation of distributions under (b) of this subsection (4) shall be the amount of deposit determined in (c) of this subsection (4);

   (b) Distributions to the county specified in (a) of this subsection (4) shall be made from the amount allocated under (a) of this subsection (4) after first making the deposit under (c) of this subsection (4). Distributions under this subsection (b) shall cease when the bonds issued for the construction of the baseball stadium are retired, but not more than twenty years after the tax under RCW 82.14.0485 is first imposed;

   (c) Except as provided in (d) of this subsection (4), in fiscal year 2006 and thereafter a portion of the moneys allocated in (a) of this subsection (4) shall be deposited to the problem gambling account created in section 3 of this act. The amount for deposit is equal to the percentage of net receipts specified in this subsection. For purposes of this subsection, "net receipts" means the difference between (i) revenue received from the sale of lottery tickets or shares and revenues received from the sale of shared game lottery tickets or shares; and (ii) the sum of payments made to winners. In fiscal year 2006, the percentage is one-tenth of one percent. In fiscal year 2007 and subsequent years, the percentage is thirteen one-hundredths of one percent;

   (d) Moneys from the amounts allocated in(a) of this subsection (4) may not be deposited to the problem gambling account in any fiscal year in which moneys dedicated to the debt service of a baseball stadium, as defined in RCW 82.14.0485, are insufficient to pay the debt service;

   (5) For distribution to the stadium and exhibition center account, created in RCW 43.99N.060. Subject to the conditions of RCW 43.99N.070, six million dollars shall be distributed under this subsection during the calendar year 1998. During subsequent years, such distribution shall equal the prior year's distributions increased by four percent. No distribution may be made under this subsection after December 31, 1999, unless the conditions for issuance of the bonds under RCW 43.99N.020(2) are met. Distributions under this subsection shall cease when the bonds are retired, but not later than December 31, 2020;

   (6) For the purchase and promotion of lottery games and game-related services; and

   (7) For the payment of agent compensation.

   The office of financial management shall require the allotment of all expenses paid from the account and shall report to the ways and means committees of the senate and house of representatives any changes in the allotments."

   Correct the title and internal references as necessary

EFFECT: Changes the source of Lottery funding for the problem gambling account to the portion of the Lottery proceed amounts that are allocated to, but in surplus of, the required debt service for the Safeco Field bonds.