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SECTION 92-C
State lottery fund
State Finance (STF) CHAPTER 56, ARTICLE 6
§ 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.