A BILL TO BE ENTITLED
AN ACT to amend the constitution to establish the lottery trust fund.
The General Assembly of North Carolina enacts:
SECTION 1.  Article V of the Constitution of North Carolina is amended by adding a new section to read:
"Sec. 15. Lottery Trust Fund.
All gross revenue from operation by the State of a lottery shall be deposited in a fund in the State Treasury to be designated the Lottery Trust Fund. Expenditures of the Fund shall be limited to administrative expenses, payments to vendors, prizes, and distribution of the net proceeds in accordance with law. The net proceeds may be expended only for educational purposes. The power of the Governor under Article III, Section 5, to reduce expenditures may not be exercised as to the State Lottery Fund and does not allow those funds to be diverted to other purposes."
SECTION 2.  The amendment set out Section 1 of this act shall be submitted to the qualified voters of the State at a statewide election to be held on the same date as the general election in November of 2010, 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
Constitutional amendment to require all the revenues of a state lottery to be placed in the Lottery Reserve Fund, to require that the net proceeds be used only for educational purposes, and to forbid diversion of those funds."
SECTION 3.  If a majority of votes cast on the question are in favor of the amendment set out in Section 1 of this act, the State Board of Elections shall certify the amendments to the Secretary of State. The constitutional amendments shall become effective upon such certification.
SECTION 4.  This act is effective when it becomes law.