2023 New York Laws › STF - State Finance › Article 6 - Funds of the State › 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.