§ 18C-164. Transfer of net revenues.
§ 18C‑164. Transfer ofnet revenues.
(a) The funds remainingin the North Carolina State Lottery Fund after receipt of all revenues to theLottery Fund and after accrual of all obligations of the Commission for prizesand expenses shall be considered to be the net revenues of the North CarolinaState Lottery Fund. The net revenues of the North Carolina State Lottery Fundshall be transferred four times a year to the Education Lottery Fund, whichshall be created in the State treasury.
(b) From the EducationLottery Fund, the Commission shall transfer a sum equal to five percent (5%) ofthe net revenue of the prior year to the Education Lottery Reserve Fund. Aspecial revenue fund for this purpose shall be established in the Statetreasury to be known as the Education Lottery Reserve Fund, and that fund shallbe capped at fifty million dollars ($50,000,000). Monies in the EducationLottery Reserve Fund may be appropriated only as provided in subsection (e) ofthis section.
(c) The Commissionshall distribute the remaining net revenue of the Education Lottery Fund, asfollows, in the following manner:
(1) A sum equal to fiftypercent (50%) to support reduction of class size in early grades to class sizeallotments not exceeding 1:18 in order to eliminate achievement gaps and tosupport academic prekindergarten programs for at‑risk four‑year‑oldswho would otherwise not be served in a high‑quality education program inorder to help those four‑year‑olds be prepared developmentally tosucceed in school.
(2) A sum equal to fortypercent (40%) to the Public School Building Capital Fund in accordance withG.S. 115C‑546.2.
(3) A sum equal to tenpercent (10%) to the State Educational Assistance Authority to fund college anduniversity scholarships in accordance with Article 35A of Chapter 115C of theGeneral Statutes.
(d) Of the sumstransferred under subsection (c) of this section, the General Assembly shallappropriate the funds annually based upon estimates of lottery net revenue tothe Education Lottery Fund provided by the Office of State Budget andManagement and the Fiscal Research Division of the North Carolina GeneralAssembly.
(e) If the actual netrevenues are less than the appropriation for that given year, then the Governormay transfer from the Education Lottery Reserve Fund an amount sufficient toequal the appropriation by the General Assembly. If the monies available in theEducation 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 academicprekindergarten programs for at‑risk four‑year‑olds who wouldotherwise not be served in a high‑quality education program in order tohelp those four‑year‑olds be prepared developmentally to succeed inschool.
(2) To reduce classsize.
(3) To provide financialaid for needy students to attend college.
(4) To the Public SchoolBuilding Capital Fund to be spent in accordance with this section.
(f) If the actual netrevenues exceed the amounts appropriated in that fiscal year, the excess netrevenues shall remain in the Education Lottery Fund, and then be transferred asfollows:
(1) Fifty percent (50%)to the Public School Building Capital Fund to be spent in accordance with thissection.
(2) Fifty percent (50%)to the State Educational Assistance Authority to be spent in accordance withthis section. (2005‑344,s. 1; 2005‑276, s. 31.1(t); 2006‑259, s. 8(e).)