North Carolina § 18C-164 - Transfer of net revenues.

§ 18C-164. Transfer of net revenues.

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, excluding balance sheet adjustments or prior-period expense adjustments necessary to implement changes in accounting methods or accounting standards, 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 at least four times a year to the Education Lottery Fund, which shall be created in the State treasury. Repealed by Session Laws 2017-57, s. 5.3(c), effective July 1, 2017. Net revenues credited to the Education Lottery Fund shall be appropriated in an amount equal to the amount appropriated from the Education Lottery Fund. The Office of State Budget and Management shall transfer any net revenues remaining in the Education Lottery Fund after the appropriations made pursuant to subsection (b1) of this section to the Education Lottery Reserve Fund, a special revenue fund, necessary to maintain a minimum balance in an amount equal to five percent (5%) of net revenue credited to the Education Lottery Fund from the State Lottery Fund during the previous fiscal year. Any net revenues remaining after appropriation pursuant to subsection (b1) of this section and transfer pursuant to subsection (b2) of this section are hereby appropriated to the Needs-Based Public School Capital Fund. Notwithstanding subsection (b2) of this section, the minimum balance of the Education Lottery Reserve Fund may be less than the amount equal to five percent (5%) of net revenue credited to the Education Lottery Fund from the State Lottery Fund during the previous fiscal year if funds are necessary to meet the amount of net revenues appropriated pursuant to subsection (b1) of this section. The General Assembly shall appropriate the remaining net revenue of the Education Lottery Fund annually in the Current Operations Appropriations Act for education-related purposes, 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. A security interest shall not be granted in funds appropriated pursuant to this subsection. Repealed by Session Laws 2013-360, s. 6.11(c), effective June 30, 2013. If the actual net revenues are less than the appropriation provided in subsection (b1) of this section for that given year, then the Governor may transfer from the Education Lottery Reserve Fund an amount sufficient to equal the appropriation provided by subsection (b1) of this section. Repealed by Session Laws 2017-57, s. 5.3(c), effective July 1, 2017. History (2005-344, s. 1; 2005-276, s. 31.1(t); 2006-259, s. 8(e); 2013-360, s. 6.11(c); 2014-100, s. 5.2(e); 2016-94, s. 5.1(b); 2017-57, s. 5.3(c); 2018-5, ss. 5.2, 5.3(b); 2020-78, s. 1.1.) Editor's Note. - Session Laws 2014-100, s. 5.2(i), made the addition of the last sentence in subsection (c) by Session Laws 2014-100, s. 5.2(e), effective August 7, 2014, and applicable to debt authorized on or after that date. Session Laws 2015-241, s. 5.2(b), as amended by Session Laws 2016-94, s. 5.1(a), provides: "Notwithstanding G.S. 18C-164(b), the net revenues deposited in the Education Lottery Fund from the 2015-2016 fiscal year that are in excess of the amounts appropriated in subsection (a) of this section for the 2015-2016 fiscal year shall be transferred to the Lottery Reserve Fund." For prior similar provisions, see Session Laws 2005-276, 2007-323, 2008-107, 2009-451, 2010-31, 2011-145, 2012-142, and 2013-360. Session Laws 2015-241, s. 1.1, provides: "This act shall be known as 'The Current Operations and Capital Improvements Appropriations Act of 2015."' Session Laws 2015-241, s. 33.4, provides: "Except for statutory changes or other provisions that clearly indicate an intention to have effects beyond the 2015-2017 fiscal biennium, the textual provisions of this act apply only to funds appropriated for, and activities occurring during, the 2015-2017 fiscal biennium." Session Laws 2015-241, s. 33.6, is a severability clause. Session Laws 2016-94, s. 1.2, provides: "This act shall be known as the 'Current Operations and Capital Improvements Appropriations Act of 2016.'" Session Laws 2016-94, s. 39.4, provides: "Except for statutory changes or other provisions that clearly indicate an intention to have effects beyond the 2016-2017 fiscal year, the textual provisions of this act apply only to funds appropriated for, and activities occurring during, the 2016-2017 fiscal year." Session Laws 2016-94, s. 39.7, is a severability clause. Session Laws 2017-57, s. 1.1, provides: "This act shall be known as the 'Current Operations Appropriations Act of 2017.'" Session Laws 2017-57, s. 39.6, is a severability clause. Session Laws 2018-5, s. 39.4, provides: "Except for statutory changes or other provisions that clearly indicate an intention to have effects beyond the 2018-2019 fiscal year, the textual provisions of this act apply only to funds appropriated for, and activities occurring during, the 2018-2019 fiscal year." Session Laws 2018-5, s. 5.3(d), provides: "Net revenues transferred from the State Lottery Fund in excess of the amounts appropriated from the Education Lottery Fund in the 2016-2017 fiscal year shall be considered net revenue credited to the Education Lottery Fund in the 2017-2018 fiscal year." Session Laws 2018-5, s. 1.1, provides: "This act shall be known as the 'Current Operations Appropriations Act of 2018.'" Session Laws 2018-5, s. 39.4, provides: "Except for statutory changes or other provisions that clearly indicate an intention to have effects beyond the 2018-2019 fiscal year, the textual provisions of this act apply only to funds appropriated for, and activities occurring during, the 2018-2019 fiscal year." Session Laws 2018-5, s. 39.7, is a severability clause. Session Laws 2020-43, s. 1(a), (b), provides: "(a) Notwithstanding G.S. 18C-164, by August 15, 2020, the Office of State Budget and Management shall transfer the sum of ten million dollars ($10,000,000) in nonrecurring funds from the cash balance in the Education Lottery Reserve Fund (Budget Code: 23004; Fund Code: 2C01) to UNC Board of Governors - Institutional Programs (Budget Code: 16011). "(b) By August 15, 2020, the Department of Public Instruction shall transfer the sum of five million dollars ($5,000,000) in nonrecurring funds from the cash balance in the School Bus Replacement Fund (Budget Code: 73510; Fund Code: 7200) to UNC Board of Governors - Institutional Programs (Budget Code: 16011)." Session Laws 2020-78, s. 22.1, provides: "Except for statutory changes or other provisions that clearly indicate an intention to have effects beyond the 2019-2021 fiscal biennium, the textual provisions of this act apply only to the 2019-2021 fiscal biennium." Session Laws 2020-78, s. 22.3, is a severability clause. Effect of Amendments. - Session Laws 2005-276, s. 31.1(t), effective July 1, 2005, added the last sentence in subsection (a); rewrote subsection (b); and added subsections (c) through (f). Session Laws 2006-259, s. 8(e), effective August 23, 2006, substituted "four times a year" for "periodically" in the last sentence of subsection (a). Session Laws 2013-360, s. 6.11(c), effective June 30, 2013, substituted "Office of State Budget and Management" for "Commission" in subsection (b); rewrote subsections (c), (e) and (f) and deleted subsection (d), which read "Of the sums transferred under subsection (c) of this section, the General Assembly shall appropriate the funds annually 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 North Carolina General Assembly." Session Laws 2014-100, s. 5.2(e), effective August 7, 2014, added the last sentence in subsection (c). See Editor's note for applicability. Session Laws 2016-94, s. 5.1(b), effective July 1, 2016, inserted "at least" in the last sentence of subsection (a). Session Laws 2017-57, s. 5.3(c), effective July 1, 2017, deleted former subsection (b), which read "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"; added subsections (b1) through (b4); in subsection (e), inserted "provided in subsection (b1) of this section" twice and deleted "by the General Assembly" at the end of the sentence; and deleted subsection (f), which formerly read: "Actual net revenues in excess of the amounts appropriated in a fiscal year shall remain in the Education Lottery Fund." Session Laws 2018-5, ss. 5.2 and 5.3(b), effective July 1, 2018, in subsection (a), inserted "excluding balance sheet adjustments or prior-period expense adjustments necessary to implement changes in accounting methods or accounting standards"; and in subsections (b2) and (b4), substituted "amount equal to five percent (5%) of net revenue credited to the Education Lottery Fund from the State Lottery Fund during the previous fiscal year" for "twenty-five million dollars ($25,000,000)" and made related changes. Session Laws 2020-78, s. 1.1, effective July 1, 2020, deleted "in the Current Operations and Capital Improvements Appropriations Act of 2017" at the end of subsection (b1).