N.Y. State Finance Law § 92-c: State lottery fund

§ 92-c. State lottery fund. 1. There is hereby established in the

joint custody of the comptroller and the commissioner of taxation and

finance a special fund to be known as the state lottery fund.

2. Such fund shall consist of the state lottery revenues including

those revenues derived from lottery tickets sold for the support of

winter sports physical education in commemoration of the XIII olympic

winter games, if any, paid into the same by the division of the lottery

as provided in section sixteen hundred twelve of the New York state

lottery for education law, and all other moneys credited or transferred

thereto from any other fund or sources pursuant to law. There shall be

established within such fund an account to be known as the winter sports

physical education account which shall consist of state lottery revenues

paid into the fund as derived solely from the sale of lottery tickets

sold for the support of winter sports physical education in

commemoration of the XIII olympic winter games. Upon such establishment

there shall also be established within such fund a separate account, to

be known as the state lottery regular account, which shall consist of

state lottery revenues other than revenues derived from the sale of

lottery tickets sold for the support of winter sports physical education

in commemoration of the XIII olympic winter games. Such state lottery

regular account shall also consist of any lottery revenues transferred

from the winter sports physical education account to the state lottery

regular account in the manner provided for in subdivision five of this

section.

3. The moneys in such fund shall be appropriated or transferred only

(i) for repayment of first instance expenditures incurred in the

operation of the state lottery, (ii) for the state fiscal year

commencing April first, nineteen hundred seventy-six only for the

purpose of providing aid to pupils with special educational needs as

defined in paragraph e of subdivision one of section thirty-six hundred

two of the education law, and pupils with handicapping conditions

receiving state financial support for programs delineated in paragraph f

of subdivision one of section thirty-six hundred two, article

eighty-three, article eighty-five, article eighty-seven, article

eighty-eight, article eighty-nine, article forty and subdivision

seventeen of section thirty-six hundred two of the education law, and

for any state fiscal year commencing after such nineteen hundred

seventy-six fiscal year for the purpose of providing aid to all school

children pursuant to the provisions of subdivision four of this section,

(iii) for elementary and secondary education, (iv) for expenditures for

machines or other capital equipment which the division of the lottery is

authorized to purchase for the operation of the lottery and (v) for

payment in the state fiscal years commencing April first, nineteen

hundred seventy-seven, nineteen hundred seventy-eight and nineteen

hundred seventy-nine into the winter sports education trust fund, as

created in section four hundred ninety-five-a of article ten-C of the

education law, for the purposes of such fund in accordance with the

provisions of subdivision five of this section. Payments into such trust

fund shall discontinue at such time as the sum of one hundred million

dollars, in the aggregate, has been paid into such fund or upon March

thirty-first, nineteen hundred eighty, whichever event occurs first.

Nothing herein shall prohibit the purchase of machines or other capital

equipment from funds appropriated for expenditures under paragraph (i)

hereof.

4. a. Moneys to be appropriated from the fund in any state fiscal

year, commencing on and after April first, nineteen hundred

seventy-seven, for the purposes of providing aid pursuant to item (ii)

of subdivision three of this section shall be apportioned and paid by

the education department no later than November fifteenth.

b. Each eligible school district and state supported school for the

deaf and blind as defined in section forty-two hundred one of the

education law shall compute their entitlement pursuant to the following

provisions:

(1) each eligible school district shall receive a minimum lottery

grant of fifteen dollars per pupil residing in the district and enrolled

in grades kindergarten through twelve in public and nonpublic schools in

the base year to be used for the expenditures made pursuant to section

seven hundred one of the education law in the base year upon proof of

such expenditures. Payment of such lottery grant to eligible school

districts shall be made in accordance with the provisions of paragraph a

of this subdivision; and

(2) each approved state supported school for the deaf and the blind

shall receive ten dollars per enrolled pupil;

(2-a) each school district eligible to receive total foundation aid

pursuant to section thirty-six hundred two of the education law shall

receive a lottery grant in an amount equal to the product of the amount

of the appropriation for the current year multiplied by the district's

VLT ratio. The "VLT ratio" shall be equal to the quotient of the moneys

apportioned for such district pursuant to section thirty-six hundred

nine-a of the education law as set forth in the school aid computer

listing produced by the commissioner in support of the enacted state

budget for the current school year, divided by the sum of such moneys

apportioned for all school districts as set forth in such school aid

computer listing in support of the enacted state budget for the current

school year.

Moneys to be appropriated from the fund in any state fiscal year,

commencing on and after April first, two thousand seven, for the

purposes of providing aid pursuant to this subparagraph shall be

apportioned and paid by the education department pursuant to section

thirty-six hundred nine-f of the education law;

(3) those eligible school districts scheduled to receive the largest

direct payments in June pursuant to clause (v) of subparagraph three of

paragraph b of subdivision one of section thirty-six hundred nine-a of

the education law shall be entitled to the June lottery aid payment,

within the amount appropriated for such purpose; and

(4) each eligible school district shall be entitled to an additional

lottery grant equal to the result of multiplying the district's total

aidable foundation pupil units for the base year computed pursuant to

paragraph g of subdivision two of section thirty-six hundred two of this

act by:

Base Grant x (1 + aid ratio)

Where, the base grant shall equal the sum of the net total available

moneys after making payments pursuant to subparagraphs (1), (2), (2-a)

and (3) above, plus an amount from the general support for public

schools-- general fund local assistance account equal to the June

lottery payment, divided by the total aidable foundation pupil units of

the state and where the Aid Ratio is equal to one minus the pupil wealth

ratio of the district as such term is defined in section thirty-six

hundred two of the education law. In no case shall a school district aid

ratio exceed one (1) or be less than minus one (-1).

c. In the event that aids, determined pursuant to paragraph b above,

exceed the total funds available for distribution pursuant to this

subdivision, then such aids shall be ratably reduced. In the event that

funds remain undistributed after determination of the aids pursuant to

paragraph b above, then such undistributed funds shall be applied so as

to ratably increase such aids. Any reduction or increase in aids

pursuant to the provisions of this paragraph shall be first assessed

against or added to the aids determined pursuant to subparagraph three

of paragraph b.

d. Any moneys paid pursuant to this subdivision shall be subject to

the limitations of paragraph a of subdivision eight of section

thirty-six hundred two of the education law and shall be used only for

operating expenses authorized by law and in accordance with regulations

to be promulgated by the commissioner of education with the approval of

the director of the budget.

5. Notwithstanding any inconsistent provision of this section or of

any other provision of law, after provision for prizes, in the manner

provided for in subdivision b of section sixteen hundred twelve of the

tax law, there shall be transferred and paid into the winter sports

education trust fund from total lottery revenues deposited in the state

lottery fund to the credit solely of the winter sports physical

education account within such fund, not otherwise transferred to the

state lottery regular account in accordance with the provisions of this

subdivision, the sum of not to exceed one hundred million dollars or

such lesser amount as has been accumulated within such winter sports

physical education account and has been so transferred and paid into

such trust fund up to and including March thirty-first, nineteen hundred

eighty, at which time no further transfers or payments shall be made

into such fund other than for the purpose of completing the transfer and

payments of moneys accumulated in the winter sports physical education

account prior to such date. The amounts of aid to be paid for the

purposes contained within paragraphs (i), (iii) and (iv) of subdivision

three of this section pursuant to subdivision four of this section shall

in no manner be limited or reduced as a result of a transfer of moneys

from the winter sports physical education account to the winter sports

education trust fund as hereinabove provided or as provided for in

section four hundred ninety-five-a of article ten-C of the education

law. During the state fiscal years commencing April first in the years

nineteen hundred seventy-seven, nineteen hundred seventy-eight and

nineteen hundred seventy-nine all moneys on deposit in the state lottery

fund to the credit of the state lottery regular account pursuant to

subdivision b of section sixteen hundred twelve of the tax law and

subdivision two of this section shall be paid for the purposes of

paragraphs (i), (iii) and (iv) of subdivision three of this section in

the manner provided for in subdivision four of this section. Other than

as hereinbelow provided, no moneys within the state lottery fund to the

credit of the winter sports physical education account shall be

transferred to the winter sports education trust fund in any of such

years unless there has been paid from such state lottery fund from

moneys in the state lottery regular account for the purposes of such

paragraphs (i), (iii) and (iv) of subdivision three of this section in

the manner provided for in subdivision four of this section, at least

the following amounts for the enumerated years:

state fiscal year minimum amount to be

commencing April first: paid pursuant to subdivision

four of this section;

1978 an amount equal to that paid in the

state fiscal year commencing April

first, nineteen hundred seventy-seven

pursuant to subdivision four of this

section plus six per centum;

1979 an amount equal to that paid in the

state fiscal year commencing April

first, nineteen hundred seventy-eight

pursuant to subdivision four of this

section plus six per centum.

In the event that the moneys within the state lottery regular account

in any state fiscal year contained within the preceding schedule are

insufficient to make such minimum amount payments required within such

schedule for such fiscal year then, upon the certified request of the

director of the division of the lottery, the comptroller shall transfer

from the winter sports physical education account to the state lottery

regular account an amount, as contained in such request, not to exceed

seventy-five per centum of the total amount of moneys credited to the

winter sports physical education account for such state fiscal year. In

the event that subsequent to such transfer the amount then contained in

the state lottery regular account is insufficient to make the minimum

amount payment so required in such schedule for such state fiscal year

such total amount shall so be paid for the purposes of paragraphs (i),

(iii) and (iv) of subdivision three of this section in the manner

provided for in subdivision four of this section and shall constitute

the total payment required for such purposes during such state fiscal

year notwithstanding the provisions of such schedule. The amount so

transferred shall in no event increase the amount to be paid pursuant to

subdivision four of this section to an amount in excess of the minimum

amount payments required to be made pursuant to such schedule. The

transfer and payments into the winter sports education trust fund shall

commence initially, on or before the twentieth day of the month of the

applicable state fiscal year next succeeding the month in which the

state lottery regular account has accumulated at least the minimum

amount payments required to be paid during such year pursuant to

subdivision four of this section and thereafter during such fiscal year,

on or before the twentieth day of each succeeding month.

6. All moneys available in any fiscal year in such fund for the

purposes specified in clauses (ii) and (iii) of subdivision three of

this section shall be deposited not later than the last day of each

month in the general fund to the credit of the state purposes fund or

the local assistance fund or both in such percentages as may be

determined by the director of the budget, to be used only for the

purposes and in the manner specified in such clauses (ii) and (iii).

7. In no fiscal year shall the total amount paid from the fund for

expenses of the lottery, exclusive of expenditures for machines or other

capital equipment which the division of the lottery is authorized to

purchase for the operation of the lottery, exceed an amount which, when

added to any amount retained by lottery sales agents as compensation for

their services, equals fifteen percent of the total amount for which

lottery tickets are sold during such fiscal year.

8. All payments from the fund for expenses of the lottery, including

expenses for personal service, shall be made on the audit and warrant of

the comptroller on vouchers approved by the director of the division of

the lottery.