{"data":{"id":"us-ky/krs-154a.130","jurisdiction":"us-ky","citation":"KRS 154A.130","heading":"Deposit of moneys -- Expenditures and investments authorized --","body":"Allocation of funds -- Transfer of revenues to general fund -- Lottery trust\naccount -- Credit from general fund to literacy fund and higher education\nscholarships -- Postaudit of c orporation's books and records -- Functions of\nAuditor of Public Accounts -- Annual newspaper publication of information.\n(1) All money received by the corporation from the sale of lottery tickets and all other\nsources shall be deposited into a cor porate operating account. The corporation is\nauthorized to use all money in the corporate operating account for the purposes of\npaying prizes and the necessary expenses of the corporation and dividends to the\nstate. The corporation shall allocate the amoun t to be paid by the corporation to\nprize winners. The amount in the corporate operating account which the corporation\nanticipates will be available for the payment of prizes on an annuity basis may be\ninvested in direct United States Treasury obligations. These instruments may be in\nvarying maturities with respect to payment of annuities and may be in book -entry\nform. Monthly, no later than the last business day of the succeeding month, the\ncorporation shall transfer to a lottery trust fund the amount of ne t revenues which\nthe corporation determines are surplus to its needs. These funds shall be held in\ntrust until 1990 at which time the General Assembly shall determine the manner in\nwhich the funds will be allocated and appropriated. The net revenues shall be\ndetermined by deducting from gross revenues the payment costs incurred in the\noperation and administration of the lottery, including the expenses of the\ncorporation and the costs resulting from any contract or contracts entered into for\npromotional, adv ertising, or operational services or for the purchase or lease of\nlottery equipment and materials, fixed capital outlays, and the payment of prizes to\nthe holders of winning tickets. After the start-up costs are paid, it is the intent of the\nLegislature that it shall be the goal of the corporation to transfer each year thirty -\nfive percent (35%) of gross revenues to the general fund for the purposes stated\nabove.\n(2) A Kentucky lottery trust account is established in the State Treasury. Net lottery\nrevenues shall be credited to this restricted account as provided in subsection (1) of\nthis section. Moneys credited to the Kentucky lottery trust account shall be invested\nby the state in accordance with state investment practices and all earnings from the\ninvestments shall accrue to this account. No moneys shall be allotted or expended\nfrom this account unless pursuant to an appropriation by the General Assembly,\nexcept that moneys as are needed shall be transferred to the general fund pursuant\nto the provisions o f the Acts of the Extraordinary Session of the 1988 General\nAssembly. Moneys in the Kentucky lottery trust account shall not lapse at the close\nof the state fiscal year.\n(3) Each fiscal year, three million dollars ($3,000,000) from net lottery revenues fro m\nthe sale of lottery tickets shall be credited from the general fund as follows:\n(a) To the statewide reading research center established under KRS 164.0207,\none million two hundred thousand dollars ($1,200,000); and\n(b) To the reading diagnostic and inte rvention fund, one million eight hundred\nthousand dollars ($1,800,000).\n(4) After the allocation of three million dollars ($3,000,000) to literacy development, as\nprovided in subsection (3) of this section, net lottery revenues from the sale of\nlottery tickets shall be credited from the general fund as follows:\n(a) To the Wallace G. Wilkinson Kentucky educational excellence scholarship\ntrust fund established in KRS 164.7877:\n1. Forty percent (40%) in fiscal year 2003-2004; and\n2. Forty-five percent (45%) in fiscal year 2004 -2005 and each fiscal year\nthereafter; and\n(b) To the College Access Program and the Kentucky Tuition Grants Program\nestablished in KRS Chapter 164:\n1. Forty percent (40%) in fiscal year 2003-2004;\n2. Forty-five percent (45%) in fiscal year 2004-2005; and\n3. Fifty-five percent (55%) of net lottery revenues in fiscal year 2005 -2006\nand each fiscal year thereafter.\n(5) The Auditor of Public Accounts shall be responsible for a financial postaudit of the\nbooks and rec ords of the corporation. The postaudit shall be conducted in\naccordance with generally accepted accounting principles, shall be paid for by the\ncorporation, and shall be completed within ninety (90) days of the close of the\ncorporation's fiscal year. The A uditor of Public Accounts shall contract with an\nindependent, certified public accountant who meets the qualifications existing to do\nbusiness within the Commonwealth of Kentucky to perform the corporation\npostaudit. The Auditor of Public Accounts shall re main responsible for the annual\npostaudit and the corporation shall pay all audit costs. The Auditor of Public\nAccounts may at any time conduct additional audits, including performance audits,\nof the corporation as he or she deems necessary or desirable. C ontracts shall be\nentered into for audit services for a period not to exceed five (5) years and the same\nfirm shall not receive two (2) consecutive audit contracts. All audits shall be filed\nwith the Governor, the President of the Senate, and the Speaker o f the House of\nRepresentatives. The corporation shall reimburse the Auditor of Public Accounts\nfor the reasonable costs of any audits performed by him or her. The corporation\nshall cooperate with the Auditor of Public Accounts by giving employees\ndesignated by any of them access to facilities of the corporation for the purpose of\nefficient compliance with their respective responsibilities. With respect to any\nreimbursement that the corporation is required to pay to any agency, the corporation\nshall enter in to an agreement with that agency under which the corporation shall\npay to the agency an amount reasonably anticipated to cover the reimbursable\nexpenses in advance of the expenses being incurred.\n(6) By no later than December 31 of each year, in an adverti sement at least one -fourth\n(1/4) of a page in size, the Kentucky Lottery Corporation shall publish the\nfollowing information in every general -circulation daily newspaper published in\nKentucky:\n(a) The statements of revenue, expenses, and changes in retaine d earnings as\nshown in the most recent annual audit report. It shall be explained that the\ntransfer of dividends is the amount of lottery earnings transferred to the\ngeneral fund;\n(b) A statement identifying the auditing firm;\n(c) A telephone number which citizens may call to obtain a complete copy of the\nannual audit report; and\n(d) The name of the president/chief executive officer of the Kentucky Lottery\nCorporation and a complete list of board members.\nThe Kentucky Lottery Corporation shall pay for the cost of the advertisement.","path":["KRS Chapter 154A"],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=54243","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:50:58Z","sha256":"4c709172567ea49adbc9a9351abcfe413acf9149e73717707492e92b2f0edc33","source_id":"us-ky","stale":false,"prev":"us-ky/krs-154a.120","next":"us-ky/krs-154a.140"},"notice":"GroundRules: Original legal text. Not legal advice."}