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2005 California Government Code Sections 8880.61-8880.67 Article 7. State Lottery Fund
GOVERNMENT CODESECTION 8880.61-8880.67
8880.61. State Lottery Fund (a) A special fund to be known as the "State Lottery Fund" is created within the State Treasury which is continuously appropriated for carrying out the purposes of this chapter. The fund shall receive all proceeds from the sales of lottery tickets or shares, the temporary line of credit for initial startup costs, and all other moneys credited to the Lottery from any other source. The Treasurer shall designate a depository to receive lottery proceeds for transmission to the State Treasury and for deposit in the State Lottery Fund. (b) Except as provided by this chapter, moneys in the General Fund or any other state fund shall not be transferred to the State Lottery Fund or otherwise used to support the California State Lottery or the Lottery Commission or to pay the debts, obligations, or encumbrances of the State Lottery Fund or the Commission. 8880.62. Types of Disbursements from the State Lottery Fund Funds shall be disbursed from the State Lottery Fund by the State Controller for any of the following purposes: (a) the payment of prizes to the holders of valid lottery tickets or shares, (b) expenses of the Lottery, (c) repayment of any funds advanced from the temporary line of credit to the Commission from the State General Fund for initial start-up costs and the interest on any such funds advanced, (d) transfer of funds from the State Lottery Fund to the benefit of the public purpose established in this Chapter. 8880.63. As nearly as practical, 50 percent of the total projected revenue, computed on a fiscal-year basis, accruing from the sales of all lottery tickets or shares shall be apportioned for payment of prizes. 8880.64. (a) Expenses of the lottery shall include all costs incurred in the operation and administration of the lottery and all costs resulting from any contracts entered into for the purchase or lease of goods and services required by the lottery, including, but not limited to, the costs of supplies, materials, tickets, independent audit services, independent studies, data transmission, advertising, promotion, incentives, public relations, communications, compensation paid to the lottery game retailers, bonding for lottery game retailers, printing, distribution of tickets or shares, reimbursement of costs of services provided to the lottery by other governmental entities, and for the costs for any other goods and services necessary for effectuating the purposes of this chapter. As a promotional expense, the commission may supplement the prize pool of a game or games upon its determination that a supplement will benefit the public purpose of this chapter. (b) (1) Not more than 16 percent of the total annual revenues accruing from the sale of all lottery tickets and shares from all lottery games shall be expended for the payment of the expenses of the lottery. (2) Expenses recorded as a result of a nonmonetary exchange shall not be considered an expense for the purposes of Section 8880.4 and this section. "Nonmonetary exchange" means a reciprocal transfer, in compliance with generally accepted accounting principles, between the lottery and another entity that results in the lottery acquiring assets or services and the lottery providing assets or services. 8880.65. Transfer of Net Revenues The funds remaining in the State Lottery Fund after accrual of all revenues to the State Lottery Fund, and after accrual of all obligations of the Lottery for prizes, expenses, and the repayment of any funds advanced from the temporary line of credit for initial startup costs and interest thereon shall be deemed to be the net revenues of the Lottery. The net revenues of the Lottery shall be transferred from the State Lottery Fund not less than quarterly to the California State Lottery Education Fund. 8880.66. Intergovernmental Reimbursements for Services The Commission shall reimburse all other governmental entities for any and all services necessary to effectuate the purpose of this Chapter provided by such governmental entities to the State Lottery Commission. 8880.67. State Controller Audits The State Controller shall conduct quarterly and annual post-audits of all accounts and transactions of the Commission and other special post-audits as the State Controller deems necessary. The Controller or his agents conducting an audit under this Chapter shall have access and authority to examine any and all records of the Commission, its distributing agencies, Lottery Contractors, and Lottery Game Retailers.
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