NC H481

Restores the original revenue distribution structure of the North Carolina Education Lottery by requiring lottery net revenues be distributed to specific education purposes rather than appropriated annually by the General Assembly.

Directs 50% of net revenues to support class size reduction in early grades (not exceeding 1:18 ratio) and academic pre-kindergarten programs for at-risk four-year-olds.

Allocates 40% of net revenues to the Public School Building Capital Fund and 10% to the State Educational Assistance Authority for college and university scholarships.

Establishes a priority order for using the Education Lottery Reserve Fund (capped at $50 million) if actual revenues fall short of appropriations, prioritizing pre-K programs, then class size reduction, then college financial aid, then school building funds.

Directs excess net revenues beyond appropriations to be split 50-50 between the Public School Building Capital Fund and the State Educational Assistance Authority, effective July 1, 2017.