§ 47:9029 — Deposit of revenues; expenditures and investments authorized; transfer of revenues

Louisiana § 47:9029

• Jurisdiction: Louisiana
• Title 47: Revenue and Taxation

Text

§9029. Deposit of revenues; expenditures and investments authorized; transfer of revenues
to state treasury; dedication and use of proceeds; corporation operating account; audit
of corporation books and records; audits
A.(1) All money received by the corporation from the sale of lottery tickets and all
other sources except for monies from sports wagering operations authorized pursuant to this
Subtitle, shall be deposited into a corporate operating account. Such account shall be
established in a fiscal agent or depository as defined in R.S. 49:319 and collateralized in the
manner provided by R.S. 49:321 and 322. The corporation may 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 estimate and allocate the
amount to be paid by the corporation to prize winners.
(2)(a) The investment of monies in the corporate operating account, other than the
amount specifically required for the purchase of securities for payment of deferred prizes
shall be invested in a manner prescribed by R.S. 49:327(B)(1)(a), (b), (c) and (d). Such
securities purchased as investments by the corporation shall be issued in the name of the
corporation and shall be safekept at a custodian financial institution or Federal Reserve Bank
domiciled in the state of Louisiana.
(b) The investment of monies in the corporate operating account, other than the
amount specifically required for the purchase of securities for deferred prize payments to
winners shall be invested only in securities in a manner prescribed by R.S. 49:327(B)(1)(a),
(b), (c), and (d). Such securities purchased as investments by the corporation shall be issued
in the name of the corporation and shall be safekept at a custodian financial institution
domiciled in the state of Louisiana or a Federal Reserve Bank.
(c) These instruments may be in varying maturities and may be in book-entry form.
(d) For the purpose of payment of deferred prizes to winners, the corporation may
only purchase those securities that are direct obligations of the United States Treasury in a
manner prescribed by R.S. 49:327(B)(1)(a).
(e) For the purpose of deferred prize payments to winners, the corporation shall
purchase or invest in only those securities that are direct obligations of the United States
Treasury.
NOTE: Paragraph (A)(3) eff. until contingency enumerated in §3 of Acts
2020, No. 318 is met. See Acts 2020, No. 318.
(3) Within twenty days following the close of each calendar month, the corporation
shall transfer to the Lottery Proceeds Fund in the state treasury the amount of net revenues
which the corporation determines are surplus to its needs. Net revenues or proceeds shall be
determined by deducting from gross revenues the payment costs incurred or estimated to be
incurred in the operation and administration of the lottery. This shall include 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 first year of operation the corporation shall transfer each year not
less than twenty-five percent of gross revenues to the state treasury.
NOTE: Paragraph (A)(3) eff. when the contingency enumerated in §3 of Acts
2020, No. 318 is met. See Acts 2020, No. 318.
(3) Within twenty days following the close of each calendar month, the corporation
shall transfer to the Lottery Proceeds Fund in the state treasury the amount of net revenues
which the corporation determines are surplus to its needs. Net revenues or proceeds shall
be determined by deducting from gross revenues the payment costs incurred or estimated to
be incurred in the operation and administration of the lottery. This shall include 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 first year of operation the corporation shall transfer
each year not less than thirty-five percent of gross revenues to the state treasury.
B.(1) A Louisiana Lottery Proceeds Fund is hereby established in the state treasury.
Net lottery proceeds shall be credited to this fund as provided in Subsection A of this
Section. Monies credited to the Louisiana Lottery Proceeds Fund shall be invested by the
state in accordance with state investment practices and all earnings from such investments
shall accrue to this account. Except as provided in Paragraph (2) of this Subsection, no
monies shall be allotted or expended from this account unless pursuant to an appropriation
by the legislature in accordance with law.
(2) The state treasurer is authorized and directed to transfer annually an amount
equaling five hundred thousand dollars from the Lottery Proceeds Fund to the Compulsive
and Problem Gaming Fund established by R.S. 28:842.
C. The legislative auditor shall be responsible for an annual financial audit of the
books and records of the corporation. The corporation shall reimburse the legislative auditor
for the reasonable costs of any audits performed by him. The audit shall be completed within
ninety days after the close of the corporation's fiscal year. The legislative auditor may
contract with an independent, certified public accountant who meets the qualifications
existing to do business within the state of Louisiana to perform the audit. The legislative
auditor may, at any time, conduct such additional audits including performance audits, of the
corporation as he deems necessary or desirable. Contracts may be entered into for audit
services for a period not to exceed five years and the same firm shall not receive two
consecutive audit contracts. All such audit reports shall be filed with the governor, the
president of the Senate, and the speaker of the House of Representatives. The corporation
shall cooperate with the auditor or his representatives by giving them access to the facilities
and records 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 such agency under which
the corporation shall pay to such agency an amount reasonably anticipated to cover such
reimbursable expenses or an advance of such expenses being incurred.

Legislative History

Acts 1990, No. 1045, §1, eff. Nov. 7, 1990; Acts 1992, No. 934, §1; Acts 1992, No. 959, §1; Acts 1995, No. 811, §1; Acts 1995, No. 1215, §4, eff. July 1, 1995; Acts 1997, No. 585, §2, eff. July 1, 1998; Acts 2008, No. 694, §1; Acts 2020, No. 318, §§1, 2, see Act; Acts 2021, No. 80, §4, eff. July 1, 2021.