6409-S2.E AMH CHAS STET 088
E2SSB 6409 - H AMD TO H AMD (6409-S2.E AMH SELL STET 086) 1654
By Representative Chase
NOT CONSIDERED 3/11/2010
On page 1, beginning on line 1 of the amendment, strike all material through "payments." on page 6, line 5, and insert the following:
"NEW SECTION. Sec. 1. The legislature finds that in every school district there are older youth who have become disengaged with the traditional education program of public high schools. They may have failed multiple classes and are far behind in accumulating credits to graduate. They do not see a high school diploma as an achievable goal. They are not likely to become reengaged in their education by the prospect of reenrollment in a traditional or even an alternative high school. Additionally, the legislature finds that dropout reengagement programs could be expanded and could benefit from additional funding. Therefore, it is the intent of the legislature to direct a portion of lottery account moneys toward stabilizing and increasing existing resources for dropout reengagement programs and for the purposes of engrossed second substitute house bill 1418 (establishing a statewide dropout reengagement program).
NEW SECTION. Sec. 2. A new section is added to chapter 28B.76 RCW to read as follows:
The Washington opportunity pathways account is created in the state treasury. Expenditures from the account may be used only for Washington state dropout reengagement programs and for implementation of Chapter ____, Laws of 2010 (Engrossed Second Substitute House Bill No. 1418)(dropout reengagement system).
Sec. 3. RCW 67.70.240 and 2009 c 500 s 11 and 2009 c 479 s 44 are each reenacted and 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 created in RCW
43.135.045)) Washington opportunity pathways account. On and after
July 1, 2004, all deposits not otherwise obligated under this section shall be placed
in the ((education construction fund)) Washington opportunity
pathways account. Moneys in the state lottery account deposited in the ((education
construction fund)) Washington opportunity pathways account are
included in "general state revenues" under RCW 39.42.070;
(4) 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. Three million dollars shall be distributed under this subsection during calendar year 1996. During subsequent years, such distributions shall equal the prior year's distributions increased by four percent. Distributions under this subsection 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;
(5) For distribution to the stadium and exhibition center account, created in RCW 43.99N.060. Subject to the conditions of RCW 19 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.
Sec. 4. RCW 67.70.340 and 2009 c 576 s 2 and 2009 c 479 s 45 are each reenacted and amended to read as follows:
(1) The legislature recognizes that creating a shared game lottery could result in less revenue being raised by the existing state lottery ticket sales. The legislature further recognizes that the fund most impacted by this potential event is the education construction account. Therefore, it is the intent of the legislature to use some of the proceeds from the shared game lottery to make up the difference that the potential state lottery revenue loss would have on the education construction account. The legislature further intends to use some of the proceeds from the shared game lottery to fund programs and services related to problem and pathological gambling.
(2) The ((education construction account)) Washington
opportunity pathways account is expected to receive one hundred two million
dollars annually from state lottery games other than the shared game lottery.
For fiscal year 2003 and thereafter, if the amount of lottery revenues
earmarked for the ((education construction account)) Washington
opportunity pathways account is less than one hundred two million dollars,
the commission, after making the transfer required under subsection (3) of this
section, must transfer sufficient moneys from revenues derived from the shared
game lottery into the ((education construction account)) Washington
opportunity pathways account to bring the total revenue up to one hundred
two million dollars.
(3)(a) The commission shall transfer, from revenue derived from the shared game lottery, to the problem gambling account created in RCW 43.20A.892, an amount equal to the percentage specified in (b) of this subsection of net receipts. For purposes of this subsection, "net receipts" means the difference between (i) revenue received from the sale of lottery tickets or shares and revenue received from the sale of shared game lottery tickets or shares; and (ii) the sum of payments made to winners.
(b) In fiscal year 2006, the percentage to be transferred to the problem gambling account is one-tenth of one percent. In fiscal year 2007 and subsequent fiscal years, the percentage to be transferred to the problem gambling account is thirteen one-hundredths of one percent.
(4) The commission shall transfer the remaining net revenues, if any, derived from the shared game lottery "Powerball" authorized in RCW 67.70.044(1) after the transfers pursuant to this section into the state general fund for the student achievement program under RCW 28A.505.220.
(5) The remaining net revenues, if any, in the shared
game lottery account after the transfers pursuant to this section shall be
deposited into the ((general fund)) Washington opportunity pathways
account.
NEW SECTION. Sec. 5. The joint legislative audit and review committee shall conduct a review of marketing and vendor expenditures and incentive payment programs at the state lottery commission to identify cost savings and efficiencies to maximize contributions to beneficiaries under this act. This review shall include examination of the following:
(1) The expenditures at the state lottery commission related to marketing and vendors compared with ticket sales. This review shall include an analysis of: Marketing expenses for fiscal years 2005 to 2010 and the impact on ticket sales; the impact to sales of tickets from the change in lottery beneficiaries provided in this act from the education construction fund to the Washington opportunity pathways account; and the competitive bidding process for vendors in Washington. In its final report on this subject, due to the legislature by November 2010, the joint legislative audit and review committee shall provide: A description of the competitive contracting processes for marketing services and vendors, and any marketing programs or expenditures funded through the lottery administrative account; an all-state survey of marketing and vendor contractors for other state lotteries; identification of whether there are duplicative or unproductive marketing activities; identification of whether savings may occur from changing vendors; and an analysis of marketing expenses and ticket sales for fiscal year 2000 through the months of fiscal year 2011 for which data are available.
(2) The incentive payment program for employees at the state lottery commission. This review shall include an analysis of the state's laws, policies, procedures, and practices as they relate to incentive payments. In its final report on this subject, due to the legislature by November 2010, the joint legislative audit and review committee shall provide: A description of how the incentive payment program at the state lottery commission operates, and comparison to best practices for outcome-based performance payments."
Correct the title.
EFFECT: Strikes all provisions of the striking amendment and the underlying bill and replaces them with the following:
· Expresses legislative intent to use lottery account revenue for stabilizing and increasing funding for statewide dropout reengagement programs.
· Creates the Washington Opportunity Pathways account. Funding from the account may only be used for state dropout reengagement programs and the purposes of Engrossed Second Substitute House Bill 1418 (establishing a statewide dropout reengagement program).
· Provides that of all net lottery revenue not otherwise obligated for paying lottery administration, lottery prizes, debt service on Safeco Stadium, or Qwest Field and Exhibition Center, and gambling education is to be deposited into the Washington Opportunity Pathways Account.
· Requires that additional net revenues from shared lottery games that were previously directed to the state general fund are now directed to the Washington Opportunity Pathway Account.
· Requires the Joint Legislative Audit and Review Committee to complete a performance review of the Lottery Commission's marketing expenditures and incentive pay structure by November 2010.
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