An Act to create the lottery repeal and recovery fund and revise provisions regarding the distribution of state revenue from video lottery.

Be it enacted by the Legislature of the State of South Dakota:

Section 1. That a NEW SECTION be added:

42-7A-66. Video lottery repeal and recovery fund--Creation.

There is created in the state treasury the video lottery repeal and recovery fund. The fund consists of all moneys deposited into the fund in accordance with § 42-7A-63. All interest received from the fund shall be deposited into the general fund. Moneys in the fund may not be expended until the playing of video lottery machines in this state is prohibited.

Section 2. That § 42-7A-63 be AMENDED:

42-7A-63. Net machine income--Deposit--General fund cap.

The commission shall maximize revenues to the state from video lottery. The state's percentage of net machine income shall be fifty percent. The state's percentage of One-half of one percent of the net machine income shall be directly deposited to into the video lottery operating fund. The remainder of the state's net machine income up to the general fund cap shall be deposited into the general fund, except for one-half of one percent of net machine income authorized for deposit into the video lottery operating fund and the state's net machine income above the general fund cap shall be deposited into the video lottery repeal and recovery fund.

Beginning in fiscal year 2022,The the general fund cap shall be the state's share of the net machine income from video lottery for the fiscal year 2019 2021, not including amounts deposited into the video lottery operating fund, minus the amount of interest deposited into the general fund under § 42-7A-66 in the preceding fiscal year.