Mass. Gen. Laws ch. 10 § 57
There shall be established and set up on the books of the commonwealth a separate fund, to be known as the State Arts Lottery Fund. Said fund shall consist of all revenues received from the sale of arts lottery tickets or shares and all other monies credited or transferred thereto from any other fund or source pursuant to law. As of July first and January first of each year, the comptroller shall determine the net balance in the State Arts Lottery Fund derived from arts lottery revenues for the preceding six months after deductions are made for (1) the amounts paid or incurred for prizes to holders of the winning lottery tickets or shares during such six month period, (2) the expenses of the state lottery commission in administering and operating the lottery for the arts for such six month period, subject to appropriation, as certified by the commissioner of administration, which amount the treasurer shall, as of such July first or January first, transfer to the General Fund, (3) the expenses of administration of the council for such six month period, including expenses of members, subject to appropriation, as certified by the commissioner of administration, and which amount the treasurer shall, as of such July first or January first transfer to the General Fund. Such net balance of any arts lottery revenues for such preceding six month period not already deducted in clauses (1), (2) or (3), if any, shall be allocated and expended as follows: (a) one million five hundred thousand dollars shall be retained in the State Arts Lottery Fund and shall be available for distribution by the council as hereinafter provided in this section and sections fifty-six and fifty-eight; (b) the amount determined by the comptroller as of July first and January first not already allocated in clause (a) shall be transferred to the Local Aid Fund. The amounts remaining including (i) the amount determined under clause (a) above, (ii) any amounts credited or transferred to the State Arts Lottery Fund and not yet distributed derived from sources other than the sale of arts lottery tickets and (iii) any amount in the State Arts Lottery Fund derived from revenues of the arts lottery conducted earlier than such preceding six month period, shall be distributed to the several cities and towns as provided under the provisions of section fifty-six and the guidelines, rules, rulings or regulations issued by the council. The council may determine the time and the amount for the distribution of such funds as the council may deem necessary or desirable to carry out the purposes of sections fifty-six to fifty-eight, inclusive; provided, however, that each eligible city or town shall be eligible to receive an annual minimum of one thousand dollars, and provided further, that a portion as determined by the council of the amount allocated under clause (a) above shall be utilized by the council for a program to assist Massachusetts school children to attend commercial or nonprofit cultural programs or events.
For the purposes of accommodating discrepancies between the receipt of revenues and related expenditures, the state lottery commission may incur expenses pursuant to clauses (1) and (2) and the comptroller may certify for payment such expenses incurred in anticipation of revenues.
Mass. Gen. Laws ch. 10, § 57