A BILL TO BE ENTITLED
AN ACT to amend the north carolina constitution to require a specific portion of lottery proceeds to be allocated to pre‑k and higher education assistance programs.
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.
Of the total annual net revenues of any lottery operated by the State, fifty percent (50%) shall be appropriated to pre‑kindergarten programs and fifty percent (50%) shall be appropriated to need‑based and merit‑based assistance for higher education programs operated in this State."
SECTION 1.(b)  The amendment set out in subsection (a) of this section shall be submitted to the qualified voters of the State at a statewide general election to be conducted on November 3, 2015, 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 fifty percent (50%) of the annual net revenues of any lottery operated by the State shall be used to fund Pre‑Kindergarten programs and fifty percent (50%) shall be used to fund need‑based and merit‑based assistance for higher education programs operated in this State."

PART II.  CONFORMING CHANGES
SECTION 2.  G.S. 18C‑164 reads as rewritten:
"§ 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 four times a year to the Education Lottery Fund, which shall be created in the State treasury.
(b)	From the Education Lottery Fund, the Office of State Budget and Management 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 General Assembly shall appropriate the remaining net revenue of the Education Lottery Fund annually in the Current Operations Appropriations Act as follows: (i) fifty percent (50%) to pre‑kindergarten programs and (ii) fifty percent (50%) to need‑based and merit‑based assistance for higher education programs operated in this State. 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 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 is effective when it becomes law.