A BILL TO BE ENTITLED
AN ACT To make changes to the north carolina state lottery, AS RECOMMENDED BY the joint legislative oversight committee ON THE STATE LOTTERY.
The General Assembly of North Carolina enacts:
SECTION 1.  G.S. 18C‑103(4) reads as rewritten:
"§ 18C‑103.  Definitions.
As used in this Chapter, unless the context requires otherwise:
...
(4)	"Game" or "lottery game" means any procedure or amusement authorized by the Commission where prizes are distributed among persons who have paid, or unconditionally agreed to pay, for tickets or shares that provide the opportunity to win those prizes and does not utilize a video gaming machine as defined in G.S. 14‑306.1A(b) or a video lottery terminal."
SECTION 2.  G.S. 18C‑162 reads as rewritten:
"§ 18C‑162.  Allocation of revenues.
(a)	The Commission shall allocate revenues to the North Carolina State Lottery Fund in order to increase and maximize the available revenues for education purposes, and to the extent practicable, shall adhere to the following guidelines:
(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.
(4)	No more than seven percent (7%) of the face value of tickets or shares, as described in this Chapter, shall be allocated for compensation paid to lottery game retailers.
(a1)	Advertising costs shall not exceed two percent (2%) of the total annual revenues, as described in this Chapter.
(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 
	
	to the Education Lottery Fund to be allocated in accordance with G.S. 18C‑164(c)."
SECTION 3.  G.S. 18C‑163(b) reads as rewritten:
"(b)	Expenses of the lottery shall also include all of the following:
(1)	A transfer of two million one hundred thousand dollars ($2,100,000) annually to the Department of Public Safety, Alcohol Law Enforcement Branch, for gambling enforcement activities.
(2)	Advertising costs."
SECTION 4.  This act becomes effective July 1, 2016.