US Laws, Codes, Statutes & Cases

Article 7.

North Carolina State Lottery Fund.

§ 18C‑160.  North Carolina State Lottery Fund.

An enterprise fund, to be known as the North Carolina State Lottery Fund, is created within the State treasury. The North Carolina State Lottery Fund is appropriated to the Commission and may be expended without further action of the General Assembly for the purposes of operating the Commission and the lottery games. (2005‑344, s. 1.)

§ 18C‑161.  Types of income to the North Carolina State Lottery Fund.

The following revenues shall be deposited in the North Carolina State Lottery Fund:

(1)       All proceeds from the sale of lottery tickets or shares.

(2)       The funds for initial start‑up costs provided by the State.

(3)       All other funds credited or appropriated to the Commission from any source.

(4)       Interest earned by the North Carolina State Lottery Fund. (2005‑344, s. 1.)

§ 18C‑162.  Allocation of revenues.

(a)       To the extent practicable, the Commission shall allocate revenues to the North Carolina State Lottery Fund in the following manner:

(1)       At least fifty percent (50%) of the total annual revenues, as described in this Chapter, shall be returned to the public in the form of prizes.

(2)       At least thirty‑five percent (35%) of the total annual revenues, as described in this Chapter, shall be transferred as provided in G.S. 18C‑164.

(3)       No more than eight percent (8%) of the total annual revenues, as described in this Chapter, shall be allocated for payment of expenses of the Lottery. Advertising expenses shall not exceed one percent (1%) of the total annual revenues.

(4)       No more than seven percent (7%) of the total annual revenues, as described in this Chapter, shall be allocated for compensation paid to lottery game retailers.

(b)       To the extent that the expenses of the Commission are less than eight percent (8%) of total annual revenues, the Commission may allocate any surplus funds:

(1)       To increase prize payments; or

(2)       To the benefit of the public purposes as described in this Chapter.

(c)       Unclaimed prize money shall be held separate and apart from the other revenues and allocated as follows:

(1)       Fifty percent (50%) to enhance prizes under subdivision (a)(1) of this section.

(2)       Fifty percent (50%) to the Education Lottery Fund to be allocated in accordance with G.S. 18C‑164(c). (2005‑344, s. 1; 2005‑276, s. 31.1(r).)

§ 18C‑163.  Expenses of the Lottery.

Expenses of the Lottery may include any of the following:

(1)       The costs incurred in operating and administering the Commission, including initial start‑up costs.

(2)       The costs resulting from any contracts entered into for the purchase or lease of goods or services required by the Commission.

(3)       A transfer of one million dollars ($1,000,000) annually to the Department of Health and Human Services for gambling addiction education and treatment programs.

(4)       The costs of supplies, materials, tickets, independent studies and audits, data transmission, advertising, promotion, incentives, public relations, communications, bonding for lottery game retailers, printing, and distribution of tickets and shares.

(5)       The costs of reimbursing other governmental entities for services provided to the Commission.

(6)       The costs for any other goods and services needed to accomplish the purposes of this Chapter. (2005‑344, s. 1; 2005‑276, s. 31.1(s).)

§ 18C‑164.  Transfer of net revenues.

(a)       The funds remaining in the North Carolina State Lottery Fund after receipt of all revenues to the Lottery Fund and after accrual of all obligations of the Commission for prizes and expenses shall be considered to be the net revenues of the North Carolina State Lottery Fund. The net revenues of the North Carolina State Lottery Fund shall be transferred periodically to the Education Lottery Fund, which shall be created in the State treasury.

(b)       From the Education Lottery Fund, the Commission shall transfer a sum equal to five percent (5%) of the net revenue of the prior year to the Education Lottery Reserve Fund. A special revenue fund for this purpose shall be established in the State treasury to be known as the Education Lottery Reserve Fund, and that fund shall be capped at fifty million dollars ($50,000,000). Monies in the Education Lottery Reserve Fund may be appropriated only as provided in subsection (e) of this section.

(c)       The Commission shall distribute the remaining net revenue of the Education Lottery Fund, as follows, in the following manner:

(1)       A sum equal to fifty percent (50%) to support reduction of class size in early grades to class size allotments not exceeding 1:18 in order to eliminate achievement gaps and to support academic prekindergarten programs for at‑risk four‑year‑olds who would otherwise not be served in a high‑quality education program in order to help those four‑year‑olds be prepared developmentally to succeed in school.

(2)       A sum equal to forty percent (40%) to the Public School Building Capital Fund in accordance with G.S. 115C‑546.2.

(3)       A sum equal to ten percent (10%) to the State Educational Assistance Authority to fund college and university scholarships in accordance with Article 35A of Chapter 115C of the General Statutes.

(d)       Of the sums transferred under subsection (c) of this section, the General Assembly shall appropriate the funds annually based upon estimates of lottery net revenue to the Education Lottery Fund provided by the Office of State Budget and Management and the Fiscal Research Division of the North Carolina General Assembly.

(e)       If the actual net revenues are less than the appropriation for that given year, then the Governor may transfer from the Education Lottery Reserve Fund an amount sufficient to equal the appropriation by the General Assembly. If the monies available in the Education Lottery Reserve Fund are insufficient to reach a full appropriation, the Governor shall transfer monies in order of priority, to the following:

(1)       To support academic prekindergarten programs for at‑risk four‑year‑olds who would otherwise not be served in a high‑quality education program in order to help those four‑year‑olds be prepared developmentally to succeed in school.

(2)       To reduce class size.

(3)       To provide financial aid for needy students to attend college.

(4)       To the Public School Building Capital Fund to be spent in accordance with this section.

(f)        If the actual net revenues exceed the amounts appropriated in that fiscal year, the excess net revenues shall remain in the Education Lottery Fund, and then be transferred as follows:

(1)       Fifty percent (50%) to the Public School Building Capital Fund to be spent in accordance with this section.

(2)       Fifty percent (50%) to the State Educational Assistance Authority to be spent in accordance with this section. (2005‑344, s. 1; 2005‑276, s. 31.1(t).)

§§ 18C‑165 through 18C‑169: Reserved for future codification purposes.