A BILL TO BE ENTITLED
AN ACT to distribute part of state lottery proceeds by allocating funds to low‑wealth school systems and growing school systems.
The General Assembly of North Carolina enacts:
SECTION 1.  G.S. 115C‑546.2(d) reads as rewritten:
"(d)	Monies transferred into the Fund in accordance with Chapter 18C of the General Statutes shall be allocated for capital projects for school construction projects as follows:
(1)	A sum equal to sixty‑five percent (65%) of those monies transferred in accordance with G.S. 18C‑164 shall be allocated to local school administrative units on a per average daily membership basis according to the average daily membership for the budget year as determined and certified by the State Board of Education.
				
(2a)	A sum equal to seventeen and one‑half percent (17.5%) of those monies transferred in accordance with G.S. 18C‑164 shall be allocated to local school administrative units located in whole or in part in low‑wealth counties under Section 7.6 of S.L. 2005‑276. In allocating funds under this subdivision to a local school administrative unit, the Department of Public Instruction shall multiply the total amount of funds available under this subdivision by a fraction, the numerator of which is the amount the local school administrative unit is allocated under Section 7.6 of S.L. 2005‑276 and the denominator of which is the total amount to be allocated to local school administrative units under Section 7.6 of S.L. 2005‑276.
(2b)	A sum equal to seventeen and one‑half percent (17.5%) of those monies transferred in accordance with G.S. 18C‑164 shall be allocated to growing local school administrative units on the basis of growth of the average daily membership for the budget year as determined and certified by the State Board of Education over a five‑year period.
(3)	No county shall have to provide matching funds required under subsection (c) of this section.
(4)	A county may use monies in this Fund to pay for school construction projects in local school administrative units and to retire indebtedness incurred for school construction projects incurred on or after January 1, 2003.
(5)	A county may not use monies in this Fund to pay for school technology needs."
SECTION 2. This act becomes effective July 1, 2007.