National Social Security Lottery Act

National Social Security Lottery Act - Title I: The National Lottery - Establishes the National Lottery Commission to start and operate an annual national lottery. Requires the Commission to report annually to the President and the Congress on its activities.

Requires that lottery tickets be sold at U.S. post offices and any other places specified by the Commission. Prohibits the sale of tickets and the awarding of prizes to any person under the age of 18. Establishes a National Social Security Lottery Trust Fund. Requires the Secretary of the Treasury to invest such portion of the Fund not required to meet current withdrawals.

Declares the sale of lottery tickets under this Act to be a Federal function for the purpose of raising revenue. Permits the sale of national lottery tickets anywhere under U.S. jurisdiction. Requires the Commission to consult and cooperate with appropriate State and local authorities in order to facilitate the operation of the national lottery and to minimize its impact in any area where it is permitted.

Exempts lottery prizes from Federal income taxation.

Sets forth criminal penalties for: (1) the sale of forged or stolen national lottery tickets; (2) fraud with respect to the national lottery; (3) unauthorized sales of national lottery tickets; (4) sales of such tickets at unauthorized prices; and (5) sales of such tickets to persons under the age of 21.

Title II: Disposition of Lottery Revenues - Requires that, of the amount in the National Social Security Lottery Trust Fund, 50 percent be periodically deposited in the Federal Old Age and Survivors Insurance Trust Fund and the Federal Disability Insurance Trust Fund; not less than 40 percent be used to pay lottery prizes; and not more than ten percent be used to operate and administer the lottery.