NC H298

Changes the North Carolina Education Lottery revenue transfer mechanism from G.S. 18C-164 to a new G.S. 18C-164.1, establishing quarterly transfers of net revenues to an Education Lottery Fund instead of direct transfers.

Allocates at least 35% of total annual lottery revenues to education purposes, with 50% to class size allotment ratios, 40% to the Public School Building Capital Fund, and 10% to college and university scholarships through the State Educational Assistance Authority.

Creates an Education Lottery Reserve Fund capped at $50 million, with 5% of prior year net revenues transferred annually to serve as a contingency fund.

Provides that excess net revenues beyond annual appropriations are distributed 50% to the Public School Building Capital Fund and 50% to the State Educational Assistance Authority.

Takes effect July 1, 2019, and maintains existing lottery expense caps of 8% for operational costs, 1% for advertising, and 7% for retailer compensation.