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H. B. No. 325 *HR31/R117* ~ OFFICIAL ~ G1/2
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To: Transportation
MISSISSIPPI LEGISLATURE REGULAR SESSION 2026
By: Representative Massengill
HOUSE BILL NO. 325
AN ACT TO AMEND SECTION 27-115-85, MISSISSIPPI CODE OF 1972, 1
TO REQUIRE ALL LOTTERY PROCEEDS TO BE DEPOSITED INTO THE STATE 2
HIGHWAY FUND AND THE EDUCATION ENHANCEMENT FUND; TO AMEND SECTION 3
75-76-129, MISSISSIPPI CODE OF 1972, TO DELETE THE REVERTER ON THE 4
PROVISION OF LAW REQUIRING CERTAIN FEES COLLECTED UNDER THE 5
MISSISSIPPI GAMING CONTROL ACT AS A RESULT OF WAGERS ON SPORTING 6
EVENTS TO BE DEPOSITED INTO THE STATE HIGHWAY FUND AND USED SOLELY 7
FOR THE REPAIR AND MAINTENANCE OF STATE HIGHWAYS AND BRIDGES; TO 8
BRING FORWARD SECTION 27-115-51, MISSISSIPPI CODE OF 1972, WHICH 9
PROVIDES FOR THE DEPOSIT OF SALES FROM LOTTERY TICKETS, FOR 10
PURPOSES OF AMENDMENT; AND FOR RELATED PURPOSES. 11
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI: 12
SECTION 1. Section 27-115-85, Mississippi Code of 1972, is 13
amended as follows: 14
27-115-85. * * * All net proceeds generated by the Alyce G. 15
Clarke Mississippi Lottery Law, created pursuant to this chapter 16
and deposited into the Lottery Proceeds Fund under Section 17
27-115-51(2), except as otherwise provided in this section, shall 18
be paid into the State Highway Fund by warrant issued by the State 19
Fiscal Officer upon requisition of the State Transportation 20
Commission as needed to provide funds to repair, renovate and 21
maintain highways and bridges of the state; however, funds paid 22
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into the State Highway Fund under this section shall be first used 23
for matching federal funds authorized to the state pursuant to any 24
federal highway infrastructure program implemented after September 25
1, 2018. However, all such monies deposited into the Lottery 26
Proceeds Fund over Eighty Million Dollars ($80,000,000.00) in a 27
fiscal year shall be transferred into the Education Enhancement 28
Fund for the purposes of funding the Early Childhood Learning 29
Collaborative, the Classroom Supply Fund and/or other educational 30
purposes. * * * 31
SECTION 2. Section 75-76-129, Mississippi Code of 1972, is 32
amended as follows: 33
* * * 34
75-76-129. (1) On or before the last day of each month all 35
taxes, fees, interest, penalties, damages, fines or other monies 36
collected by the Department of Revenue during that month under the 37
provisions of this chapter, with the exception of (a) the local 38
government fees imposed under Section 75-76-195, and (b) an amount 39
equal to Three Million Dollars ($3,000,000.00) of the revenue 40
collected pursuant to the fee imposed under Section 41
75-76-177(1)(c), and (c) the revenue collected pursuant to the fee 42
imposed under Section 75-76-177(1)(c) as a result of wagers on 43
sporting events shall be paid by the Department of Revenue to the 44
State Treasurer to be deposited in the State General Fund. The 45
local government fees shall be distributed by the Department of 46
Revenue pursuant to Section 75-76-197. 47
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(2) An amount equal to Three Million Dollars ($3,000,000.00) 48
of the revenue collected during that month pursuant to the fee 49
imposed under Section 75-76-177(1)(c) shall be deposited by the 50
Department of Revenue into the bond sinking fund created in 51
Section 1(3) of Chapter 479, Laws of 2015. 52
(3) Revenue collected pursuant to the fee imposed under 53
Section 75-76-177(1)(c) as a result of wagers on sporting events 54
shall be deposited into the State Highway Fund to be used solely 55
for the repair and maintenance of highways and bridges of the 56
State of Mississippi. This revenue shall be used first for 57
matching funds made available to the state for such purposes 58
pursuant to any federal highway infrastructure program implemented 59
after September 1, 2018. 60
* * * 61
SECTION 3. Section 27-115-51, Mississippi Code of 1972, is 62
brought forward as follows: 63
27-115-51. (1) (a) All monies received by the corporation 64
from the sale of lottery tickets and all other sources shall be 65
deposited into a corporate operating account. Such account shall 66
be established in a custodian financial institution domiciled in 67
the State of Mississippi and insured by the Federal Deposit 68
Insurance Corporation and collateralized as prescribed by Section 69
27-105-5. The corporation may use all monies in the corporate 70
operating account for the purposes of paying prizes and the 71
necessary expenses of the corporation and dividends to the state. 72
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The corporation shall estimate and allocate the amount to be paid 73
by the corporation to prizewinners. 74
(b) (i) The investment of monies in the corporate 75
operating account, other than the amount specifically required for 76
the purchase of securities for payment of deferred prizes, shall 77
be invested in a manner prescribed by the board, consistent with 78
law. Such securities purchased as investments by the corporation 79
shall be issued in the name of the corporation and shall be kept 80
at a custodian financial institution domiciled in the State of 81
Mississippi insured by the Federal Deposit Insurance Corporation. 82
(ii) The investment of monies in the corporate 83
operating account, other than the amount specifically required for 84
the purchase of securities for deferred prize payments to winners, 85
shall be invested only in securities in a manner prescribed by the 86
board, consistent with law. Such securities purchased as 87
investments by the corporation shall be issued in the name of the 88
corporation and shall be safe kept at a custodian financial 89
institution domiciled in the State of Mississippi insured by the 90
Federal Deposit Insurance Corporation. 91
(iii) These instruments may be in varying 92
maturities and may be in book-entry form. 93
(iv) For the purpose of deferred prize payments to 94
winners, the corporation shall purchase or invest in only those 95
securities prescribed by the board, consistent with law. 96
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(c) Within twenty (20) days following the close of each 97
calendar month, the corporation shall transfer to the Lottery 98
Proceeds Fund in the State Treasury the amount of net proceeds. 99
(d) The apportionment of the total gross revenues 100
accruing from the sale of lottery tickets or shares and from all 101
other sources shall be as follows: 102
(i) The payment of prizes to the holders of 103
winning lottery tickets or shares which in any case shall be no 104
less than fifty percent (50%) of the total gross revenues accruing 105
from the sale of lottery tickets. 106
(ii) The payment of costs incurred in the 107
operation and administration of the lottery, including the 108
expenses of the corporation and the costs resulting from any 109
contract or contracts entered into for promotional, advertising or 110
operational services or for the purchase or lease of lottery 111
equipment and materials, which in no case shall exceed fifteen 112
percent (15%) of the total gross revenues accruing from the sale 113
of lottery tickets. However, this restriction shall not apply 114
until after the first twelve (12) months of revenue generation. 115
(2) A Lottery Proceeds Fund is hereby established in the 116
State Treasury. Net proceeds shall be deposited into this fund as 117
provided in subsection (1) of this section. Monies deposited into 118
the Lottery Proceeds Fund shall be invested by the state in 119
accordance with state investment practices, and all earnings from 120
such investments shall accrue to this account. No monies shall be 121
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ST: Lottery and gaming fees; revise
distribution to State Highway Fund and Education
Enhancement Fund.
allotted or expended from this account unless pursuant to a 122
warrant issued as provided under Section 27-115-85. 123
SECTION 4. This act shall take effect and be in force from 124
and after July 1, 2026. 125