AN ACT to allocate tax proceeds from sports betting to provide salary supplements for athletic coaches.

The General Assembly of North Carolina enacts:

SECTION 1.  G.S. 105‑113.128 reads as rewritten:

§ 105‑113.128.  Use of tax proceeds.

The Secretary shall distribute the taxes collected under this Article, less the allowance to the Department of Revenue and reimbursement to the Lottery Commission for administrative expenses, in accordance with this section. The Secretary may retain the cost of administering this Article, not to exceed five hundred thousand dollars ($500,000) a year, as reimbursement to the Department. The Lottery Commission shall, no later than 20 days after the end of the month, notify the Department of its unreimbursed expenses from administering the provisions of Article 9 of Chapter 18C of the General Statutes from the previous month. The Department shall reimburse the Lottery Commission from the tax revenues collected under this Article no later than the end of the month in which the Department was notified. The remainder of the net proceeds of the tax collected under this Article are to be credited in the following priority:

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(3a)      Eleven million dollars ($11,000,000) annually to the Department of Public Instruction to be allocated to eligible public school units to provide salary supplements to all eligible athletic coaches to ensure that each eligible athletic coach receives a total annual salary supplement for serving as an athletic coach of at least three thousand dollars ($3,000) in State and non‑State funds. An eligible public school unit that provided non‑State funds for salary supplements for athletic coaches in the prior school year shall continue to provide at least that amount of non‑State funds for salary supplements for athletic coaches. Any public school unit that supplants funds provided under this subdivision for salary supplements for athletic coaches shall not receive State funds for salary supplements in the subsequent school year. If there are any unexpended funds from this allocation at the end of the fiscal year, the Department shall allocate those funds to the North Carolina Alliance of YMCAs, Inc. to support youth sports programming in the State. For purposes of this subdivision, the following definitions shall apply:

a.         Eligible athletic coach. – A person employed full‑time in a public school unit who serves as an athletic coach and who receives a salary supplement from non‑State funds for serving as an athletic coach that is equal to or less than three thousand dollars ($3,000) each school year.

b.         Eligible public school unit. – A public school unit that reports to the Department of Public Instruction by August 15 of each year on the amount of non‑State funds provided for salary supplements for athletic coaches in the prior school year.

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SECTION 2.  This act becomes effective July 1, 2025, and applies beginning with the 2025‑2026 school year.