Sec. 1. 8 MRSA §296 is enacted to read:

§296.__Harness Racing Purse Fund

The Harness Racing Purse Fund, referred to in this section as the "fund," is established.

The purpose of the fund is to improve purses for harness racing.__The fund is administered by the commission, which shall adopt rules to implement this section.__The fund consists of revenues received pursuant to section 387, subsection 1, paragraph E and from any public or private source.__The commission shall make an expenditure from the fund to carry out the purposes of the fund in accordance with rules the commission adopts to administer the fund.__The fund must be held separate and apart from all other money, funds and accounts.__Eligible investment credit earnings credited to the assets of the fund become part of the assets of the fund.__Any balance remaining at the end of the year does not lapse but must be carried forward.__ Rules adopted pursuant to this section are routine technical rules as defined in Title 5, chapter 375, subchapter II-A.

Sec. 2. 8 MRSA §374, sub-§6 is enacted to read:

6.__Harness racing lottery game.__No later than January 30, 2002, the commission, in consultation with the State Harness Racing Commission, shall develop and initiate a harness racing lottery game designed to raise funds for the Harness Racing Purse Fund established in section 296.__The commission shall provide the net proceeds of this harness racing lottery game to the Harness Racing Purse Fund annually.__The commission shall change the harness racing lottery game ticket periodically throughout the year.

Sec. 3. 8 MRSA §387, sub-§1, as amended by PL 1995, c. 494, §5, is further amended to read:

1. Appropriation. The money in the State Lottery Fund may be appropriated only:

A. For the payment of prizes to the holders of winning lottery tickets or shares;

B. For the expense of the division in its operation of the lottery;

C. For payment to the General Fund; and