2023 Colorado Revised Statutes › Title 44 - REVENUE - REGULATION OF ACTIVITIES (§§ 44-1-101 — 44-50-1001) › LOTTERY (§§ 44-40-101 — 44-50-1001) › Article 40 - STATE LOTTERY DIVISION (§§ 44-40-101 — 44-40-123) › Section 44-40-111 - Lottery fund - creation - definitions

(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
.
(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
.
(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; and
(IV)
For the 2023-24 state fiscal year and each state fiscal year thereafter, 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.
(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.
Amended by 2022 Ch. 402,§5, eff. 8/10/2022.
Amended by 2021 Ch. 272,§2, eff. 6/21/2021.
Amended by 2019 Ch. 390,§72, eff. 8/2/2019.
Renumbered from C.R.S. § 24-35-210 and amended by 2018 Ch. 31,§2, eff. 10/1/2018.
L. 2018: Entire article added with relocations, (HB 18-1027), ch. 350, p. 350, §2, effective October 1. L. 2019: (10)(a) amended, (SB 19-241), ch. 3482, p. 3482, § 72, effective August 2. L. 2021: (12) added, (HB 21-1318), ch. 1578, p. 1578, § 2, effective June 21.
This section is similar to former § 24-35-210 as it existed prior to 2018.
2022 Ch. 402, was passed without a safety clause. See Colo. Const. art. V, § 1(3).
For the creation of the conservation trust fund, see §29-21-101(2).