(1) There is hereby created,
in the office of the state treasurer, the lottery fund. The initial appropriation to the
division, and all subsequent revenues of the division not earlier paid as prizes, shall
be paid into the lottery fund. All expenses of the division, including the expenses of
organized crime investigation and prosecution relating to the lottery, shall be paid
from the lottery fund. For the purposes of this section and section 44-40-109,
expenses do not include amounts expended for lottery prizes. Prizes for the
lottery shall be paid only from the lottery fund or from money collected from the
sale of lottery tickets or shares. Amounts for prizes and expenses are hereby
appropriated to the division, except as provided in subsection (3) of this section.
(1.5) For the 2022-23 state fiscal year, and for each state fiscal year
thereafter, the general assembly shall appropriate two hundred thousand dollars
from the lottery fund to the division to cover expenses relating to the division's
efforts to promote responsible gaming in the state.
(2) The division shall deposit all liquidated damages into the lottery fund,
and any revenues received from liquidated damages shall not be expended by the
division unless appropriated by the general assembly. The division shall not receive
any goods or services in lieu of an assessment of liquidated damages, nor shall the
division require a vendor to purchase goods and services in lieu of an assessment of
liquidated damages.
(3) Expenses of the division shall be paid from the lottery fund only as
appropriated by the general assembly.
(4) Upon request, it is the duty of the state treasurer to report to the director
or the commission the amount of money on hand in the lottery fund. All accounts
and expenditures from the lottery fund shall be certified by the director and paid by
the state treasurer upon warrants drawn by the controller. The controller is
authorized as directed to draw warrants payable out of the lottery fund upon
vouchers therefor properly certified.
(5) (a) The amount to be transferred from the lottery fund to the
conservation trust fund shall be forty percent of the net proceeds of the lottery for
the preceding fiscal quarter after payment of the expenses of the division and any
prizes for the lottery and after reserving sufficient money, as of the end of the fiscal
year, to ensure the operation of the lottery for the ensuing fiscal year. The money
reserved by the lottery shall be held in cash and investments. Beginning with the
fourth quarter of fiscal year 1998-99, and each fiscal year thereafter, distributions
of net lottery proceeds to the conservation trust fund shall be made in accordance
with the provisions of section 33-60-104 (1)(a).
(b) (I) Beginning with the first quarter of fiscal year 1998-99 and each fiscal
year thereafter, distributions of net lottery proceeds to the division of parks and
wildlife shall be made in accordance with the provisions of section 33-60-104 (1)(b).
(II) The appropriation of money from the state lottery for capital construction
shall be consistent with part 13 of article 3 of title 2 until part 13 is repealed.
(c) The lottery money available for appropriation to the division of parks and
wildlife pursuant to subsection (5)(b) of this section shall be appropriated and
expended for the acquisition and development of new state parks, new state
recreation areas, or new recreational trails, for the expansion of existing state
parks, state recreation areas, or recreational trails, or for capital improvements of
both new and existing state parks, state recreation areas, or recreational trails.
Except as provided in section 33-60-105, in addition to appropriation for the
division's capital construction budget, said lottery money may be appropriated for
the division's operating budget for expenditures attributable to the maintenance
and operation of state parks, state recreation areas, or recreational trails, or any
portions thereof, that have been acquired or developed with lottery money.
(d) This subsection (5) becomes effective on September 1, 1998.
(6) The state treasurer shall invest the money in the lottery fund so long as
said money is timely available to pay the expenses of the division, to pay the prizes
to the lottery winners, to make authorized transfers to the conservation trust fund,
and to fund the annual appropriations authorized by subsection (5) of this section.
Investments shall be those otherwise permitted by state law, and interest or any
other return on the investments shall be paid into the lottery fund.
(7) The division shall be operated so that, after the initial state appropriation,
it shall be self-sustaining.
(8) No claim for the payment of any expense of the division or the payment
of any lottery prize can be made unless it is against the lottery fund or against
money collected from the sale of lottery tickets or shares. No other money of the
state of Colorado shall be used or obligated to pay the expenses of the division or
prizes of the lottery.
(9) The total disbursements for lottery prizes shall be no less than fifty
percent of the total revenue accruing from the sale of lottery tickets or shares.
(10) (a) Net lottery proceeds to be distributed to the conservation trust fund,
as computed pursuant to this section, shall be transferred to the conservation trust
subaccount of the lottery fund, which subaccount is hereby created, once each
month. Transfers shall be made from net lottery proceeds reflected in the monthly
statement for the period ending sixty days prior to each monthly distribution. The
state treasurer shall invest all money in the conservation trust subaccount in
investments permitted by state law. Notwithstanding subsection (6) of this section,
interest or any other return on the investments of the conservation trust
subaccount must be distributed to the conservation trust fund.
(b) Beginning with the first quarter of fiscal year 1998-99, distributions shall
be made on a quarterly basis in accordance with the provisions of section 33-60-104, with the distribution of net lottery proceeds for the first quarter occurring on
December 1 of the fiscal year, distribution of net lottery proceeds for the second
quarter occurring on March 1 of the fiscal year, distribution of net lottery proceeds
for the third quarter occurring on June 1 of the fiscal year, and distribution of net
lottery proceeds for the fourth quarter occurring on September 1 following the
close of the fiscal year.
(11) The general assembly may establish priorities in the general
appropriation act for expenditures for projects to be financed from net lottery
proceeds appropriated for capital construction. The priorities shall govern the use
of quarterly distributions from the lottery fund in order to assure that available
revenues are used to fund higher priority projects before they are used to fund
lower priority projects.
(12) (a) As used in this subsection (12), unless the context otherwise requires:
(I) Outdoor equity fund means the outdoor equity fund created in section
33-9-206.
(I.5) Outdoor recreation economic development cash fund means the
outdoor recreation economic development cash fund created in section 24-48.5-129 (4)(a).
(II) Parks and outdoor recreation cash fund means the parks and outdoor
recreation cash fund created in section 33-10-111 (1).
(III) Public school capital construction assistance fund means the public
school capital construction assistance fund created in section 22-43.7-104.
(III.5) Strategic outdoor recreation management and infrastructure cash
fund means the strategic outdoor recreation management and infrastructure cash
fund created in section 33-9-116 (1)(a).
(IV) Wildlife cash fund means the wildlife cash fund created in section 33-1-112 (1)(a).
(b) Pursuant to subsection (10)(b) of this section, the state treasurer shall
transfer money that would otherwise be allocated to the general fund pursuant to
section 3 (1)(b)(III) of article XXVII of the state constitution, and as described in
section 33-60-104 (1)(c), as follows:
(I) For the 2020-21 state fiscal year, to the extent available, the first seven
hundred fifty thousand dollars to the outdoor equity fund; the next three million
dollars to the public school capital construction assistance fund; and any remaining
money as follows: Twenty-five percent to the wildlife cash fund, twenty-five
percent to the parks and outdoor recreation cash fund, and fifty percent to the
public school capital construction assistance fund;
(II) For the 2021-22 state fiscal year, to the extent available, the first one
million five hundred thousand dollars to the outdoor equity fund; the next three
million dollars to the public school capital construction assistance fund; and any
remaining money as follows: Twenty-five percent to the wildlife cash fund, twenty-five percent to the parks and outdoor recreation cash fund, and fifty percent to the
public school capital construction assistance fund;
(III) For the 2022-23 state fiscal year, to the extent available, the first two
million two hundred fifty thousand dollars to the outdoor equity fund; the next three
million dollars to the public school capital construction assistance fund; and any
remaining money as follows: Twenty-five percent to the wildlife cash fund, twenty-five percent to the parks and outdoor recreation cash fund, and fifty percent to the
public school capital construction assistance fund;
(IV) For the 2023-24 state fiscal year, to the extent available, the first three
million dollars to the outdoor equity fund; the next three million dollars to the public
school capital construction assistance fund; and any remaining money as follows:
Twenty-five percent to the wildlife cash fund, twenty-five percent to the parks and
outdoor recreation cash fund, and fifty percent to the public school capital
construction assistance fund; and
(V) For the 2024-25 state fiscal year and each state fiscal year thereafter, to
the extent available, if the total amount of such money available is twenty million
dollars or less:
(A) The first four million dollars to the outdoor equity fund;
(B) The next three million dollars to the public school capital construction
assistance fund;
(C) The next seven hundred fifty thousand dollars to the outdoor recreation
economic development cash fund; and
(D) Any remaining money as follows: fifty percent to the public school capital
construction assistance fund; twenty percent to the parks and outdoor recreation
cash fund; twenty percent to the wildlife cash fund; and ten percent to the outdoor
equity fund.
(VI) For the 2024-25 state fiscal year and each state fiscal year thereafter,
to the extent available, if the total amount of such money available is more than
twenty million dollars:
(A) The first four million dollars to the outdoor equity fund;
(B) The next three million dollars to the public school capital construction
assistance fund;
(C) The next seven hundred fifty thousand dollars to the outdoor recreation
economic development cash fund; and
(D) Any remaining money as follows: fifty percent to the public school capital
construction assistance fund; fifteen percent to the parks and outdoor recreation
cash fund; fifteen percent to the wildlife cash fund; ten percent to the outdoor
equity fund; five percent to the outdoor recreation economic development cash
fund; and five percent to the strategic outdoor recreation management and
infrastructure cash fund.
(c) The money transferred under this subsection (12) and any income and
interest derived from the deposit and investment of such money is exempt from any
restriction on spending, revenue, or appropriations, including, without limitation, the
restrictions of section 20 of article X of the state constitution.