A BILL TO BE ENTITLED
AN ACT to amend the constitution to guarantee that lottery funds Are used to supplement and not supplant other funding for public educational purposes.
The General Assembly of North Carolina enacts:

PART I. CONSTITUTIONAL AMENDMENT
SECTION 1.(a)  Article V of the Constitution of North Carolina is amended by adding a new section to read:
"Sec. 15.  Use of Lottery Funds.
The net proceeds of any lottery operated by the State shall be used only for public educational purposes and shall be used to supplement and not supplant other funds from any source appropriated for those public educational purposes. The power of the Governor under Article III, Section 5, of the Constitution, to reduce expenditures shall not be exercised as to the net proceeds of the lottery and does not allow those funds to be diverted to other purposes."
SECTION 1.(b)  The amendment set out in subsection (a) of this section shall be submitted to the qualified voters of the State at the general election in November 2016, which election shall be conducted under the laws then governing elections in the State. Ballots, voting systems, or both may be used in accordance with Chapter 163 of the General Statutes. The question to be used in the voting systems and ballots shall be:
"[ ] FOR	[ ] AGAINST
A constitutional amendment providing that the net proceeds of any lottery operated by the State shall be used only for public educational purposes and shall be used to supplement and not supplant other funds from any source appropriated for those public educational purposes.

PART II. CONFORMING CHANGES
SECTION 2.(a)  G.S. 18C‑102 reads as rewritten:
"§ 18C‑102.  Purpose and intent.
The General Assembly declares that the purpose of this Chapter is to establish a State‑operated lottery to generate funds only for public educational purposes."
SECTION 2.(b)  G.S. 18C‑164(c) reads as rewritten:
"(c)	The General Assembly shall appropriate the remaining net revenue of the Education Lottery Fund annually in the Current Operations Appropriations Act for public education purposes only, 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 Legislative Services Commission. These funds shall be used to supplement and not supplant other funds from any source appropriated for those public educational purposes.
A security interest shall not be granted in funds appropriated pursuant to this subsection."

PART III. EFFECTIVE DATES
SECTION 3.(a)  If a majority of votes cast on the question are in favor of the amendment set out in Section 1(a) of this act, the State Board of Elections shall certify the amendment to the Secretary of State. The constitutional amendment shall become effective upon such certification. The Secretary of State shall enroll the amendment so certified among the permanent records of that office.
SECTION 3.(b)  Section 2 of this act becomes effective only upon approval by the voters of the constitutional amendment proposed in Section 1 of this act. If the constitutional amendment proposed in Section 1 is approved by the voters, Section 2 of this act becomes effective upon this certification and applies beginning with the 2016‑2017 fiscal year.
SECTION 3.(c)  Section 1(b) of this act is effective when this act becomes law.