SENATE AMENDED
        PRIOR PRINTER'S NOS. 170, 2721                PRINTER'S NO. 3919

THE GENERAL ASSEMBLY OF PENNSYLVANIA


HOUSE BILL

No. 164 Session of 1991


        INTRODUCED BY GIGLIOTTI, TRICH, COLAIZZO, TANGRETTI, DeLUCA,
           MAYERNIK, ARGALL, COWELL, McGEEHAN, RICHARDSON, FARGO, ITKIN,
           B. SMITH, STURLA, FAJT, DERMODY, KRUSZEWSKI, COHEN, KOSINSKI,
           TRELLO, PESCI, VEON, STABACK, MERRY, PISTELLA, PETRARCA, FOX,
           TIGUE, LAUGHLIN, MELIO, McNALLY, CIVERA, JAMES, VAN HORNE,
           BILLOW, KAISER, SCRIMENTI, LaGROTTA, D. W. SNYDER, BISHOP,
           DALEY, GEIST, FARMER, KENNEY, HALUSKA, MARKOSEK AND
           COLAFELLA, JANUARY 30, 1991

        SENATOR TILGHMAN, APPROPRIATIONS, IN SENATE, RE-REPORTED AS
           AMENDED, JUNE 30, 1992

                                     AN ACT

     1  Amending the act of August 26, 1971 (P.L.351, No.91), entitled
     2     "An act providing for a State Lottery and administration
     3     thereof; authorizing the creation of a State Lottery
     4     Commission; prescribing its powers and duties; disposition of
     5     funds; violations and penalties therefor; exemption of prizes
     6     from State and local taxation and making an appropriation,"
     7     FURTHER PROVIDING FOR POWERS AND DUTIES OF THE SECRETARY OF    <--
     8     REVENUE; permitting the Secretary of Revenue to enter into
     9     contracts for the placement of commercial advertisements on
    10     lottery tickets; FURTHER PROVIDING FOR DISPOSITION OF FUNDS    <--
    11     FROM SALES; MAKING AN APPROPRIATION; AND MAKING REPEALS.

    12     The General Assembly of the Commonwealth of Pennsylvania
    13  hereby enacts as follows:
    14     Section 1.  Section 6(a) of the act of August 26, 1971         <--
    15  (P.L.351, No.91), known as the State Lottery Law, is amended by
    16  adding a clause to read:
    17     SECTION 1.  SECTION 6(A)(11) OF THE ACT OF AUGUST 26, 1971     <--
    18  (P.L.351, NO.91), KNOWN AS THE STATE LOTTERY LAW, AMENDED


     1  OCTOBER 17, 1980 (P.L.1088, NO.184), IS AMENDED AND THE
     2  SUBSECTION IS AMENDED BY ADDING A CLAUSE TO READ:
     3     Section 6.  Powers and Duties of the Secretary of Revenue.--
     4  (a)  In addition to the powers and duties provided by law and
     5  "The Administrative Code of 1929," the Secretary of Revenue
     6  shall have the power and it shall be his duty to operate and
     7  administer the lottery, and to promulgate rules and regulations
     8  governing the establishment and operation thereof, including but
     9  not limited to:
    10     * * *
    11     (11)  THE APPORTIONMENT OF THE TOTAL REVENUES ACCRUING FROM    <--
    12  THE SALE OF LOTTERY TICKETS OR SHARES AND FROM ALL OTHER SOURCES
    13  AMONG (I) THE PAYMENT OF PRIZES TO THE HOLDERS OF WINNING
    14  TICKETS OR SHARES; [(II) THE PAYMENT OF COSTS INCURRED IN THE
    15  OPERATION AND ADMINISTRATION OF THE LOTTERY, INCLUDING THE
    16  EXPENSES OF THE DIVISION AND THE COSTS RESULTING FROM ANY
    17  CONTRACT OR CONTRACTS ENTERED INTO FOR PROMOTIONAL, ADVERTISING
    18  OR OPERATIONAL SERVICES OR FOR THE PURCHASE OR LEASE OF LOTTERY
    19  EQUIPMENT AND MATERIALS;] (III) FOR THE REPAYMENT OF THE MONEYS
    20  APPROPRIATED TO THE STATE LOTTERY FUND PURSUANT TO SECTION 16 OF
    21  THIS ACT; AND (IV) FOR PROPERTY TAX RELIEF AND FREE OR REDUCED
    22  FARE TRANSIT SERVICE FOR THE ELDERLY AS PROVIDED IN SECTION 12
    23  OF THIS ACT: PROVIDED, HOWEVER, THAT NO LESS THAN THIRTY PER
    24  CENT OF THE TOTAL REVENUES ACCRUING FROM THE SALE OF LOTTERY
    25  TICKETS OR SHARES SHALL BE DEDICATED TO SUBCLAUSE (IV) ABOVE,
    26  EXCEPT THAT NO REVENUES SHALL BE USED AS A SUBSTITUTE FOR
    27  MEDICAL ASSISTANCE LONG-TERM CARE OF THE ELDERLY, COMMENCING
    28  WITH THE 1993-1994 FISCAL YEAR.
    29     (11.1)  The production and merchandising of promotional items
    30  for the lottery.
    19910H0164B3919                  - 2 -

     1     * * *
     2     Section 2.  The act is amended by adding a section to read:
     3     Section 6.1.  Commercial Advertising.--(a)  The secretary may
     4  enter into contracts with persons, associations or corporations
     5  that provide for the placement of commercial advertisements on
     6  tickets or shares.
     7     (b)  The secretary may enter into the contracts only after
     8  completion of the bidding procedure contained in subsection (c).
     9     (c)  (1)  The secretary shall, not less than six weeks prior
    10  to the date set for opening bids or proposals to place
    11  advertisements on the tickets or shares, advertise the opening
    12  of proposals for at least three days, the first and last
    13  publication to be at least ten days apart, in not fewer than six
    14  nor more than twelve newspapers of extensive general circulation
    15  in different parts of this Commonwealth. The advertisements
    16  shall invite proposals for the placement of commercial
    17  advertisements on the tickets or shares, shall direct potential
    18  bidders to include with their proposals a specimen
    19  advertisement, and shall give notice of the time and place where
    20  the proposals will be received and when they will be opened.
    21     (2)  All proposals shall be delivered to the secretary on or
    22  before the hour designated in the invitation to bid, on the day
    23  set by the secretary, following the date of the last
    24  advertisement, and each bid shall be in duplicates, one of which
    25  shall be marked "Duplicate Bid." Each bid shall be enclosed in
    26  an envelope, securely sealed, and shall be mailed or delivered
    27  to the secretary, who shall retain all envelopes unopened until
    28  the time fixed for the opening thereof.
    29     (3)  The secretary shall, on the date fixed for opening of
    30  bids, at the hour designated in the invitation to bid, open and
    19910H0164B3919                  - 3 -

     1  publish the proposals, and, as soon thereafter as practicable,
     2  award the contract to the highest responsible bidder. The
     3  secretary shall have the right to reject any or all bids. The
     4  bids, when opened, shall be tabulated and shall be subject to
     5  examination by bidders. A record of all bids shall be made by
     6  the secretary, in a book kept for that purpose.
     7     (4)  When no proposal has been received, or, if for any
     8  reason the secretary rejects all proposals, the secretary may
     9  advertise again for proposals, giving at least fifteen days'
    10  notice of the time of receiving the same, which proposals shall
    11  be opened, awarded and approved in like manner as the initial
    12  bids.
    13     (5)  The secretary shall have the discretion to refuse to
    14  accept any advertisement that is inappropriate or offensive or
    15  displays poor taste. Advertisements for tobacco products or for
    16  alcoholic beverages shall not be accepted.
    17     (d)  All revenues derived from contracts entered into under
    18  this section shall be deposited in the State Lottery Fund.
    19     (e)  The secretary may promulgate rules and regulations to
    20  implement the provisions of this section.
    21     (f)  As used in this section, the term "tickets or shares"
    22  shall not include instant game tickets.
    23     Section 3.  This act shall take effect in 60 days.             <--
    24     SECTION 3.  SECTION 12(B) OF THE ACT, AMENDED OCTOBER 17,      <--
    25  1980 (P.L.1088, NO.184), IS AMENDED TO READ:
    26     SECTION 12.  DISPOSITION OF FUNDS FROM SALE OF TICKETS OR
    27  SHARES.--* * *
    28     (B)  THE MONEYS IN SAID STATE LOTTERY FUND SHALL BE
    29  APPROPRIATED ONLY:
    30     (1)  FOR THE PAYMENT OF PRIZES TO THE HOLDERS OF WINNING
    19910H0164B3919                  - 4 -

     1  LOTTERY TICKETS OR SHARES;
     2     [(2)  FOR THE EXPENSES OF THE DIVISION IN ITS OPERATION OF
     3  THE LOTTERY;]
     4     (3)  FOR PROPERTY TAX RELIEF AND FREE OR REDUCED FARE TRANSIT
     5  SERVICE FOR THE ELDERLY AS PROVIDED UNDER SECTION 12 OF THIS
     6  ACT; AND
     7     (4)  FOR TRANSFER TO THE GENERAL FUND THROUGH JUNE 30, 1972,
     8  AND FOR THE REPAYMENT TO THE GENERAL FUND OF THE AMOUNT
     9  APPROPRIATED TO THE FUND PURSUANT TO SECTION 16 OF THIS ACT.
    10     SECTION 4.  THE SUM OF $20,000,000, OR AS MUCH THEREOF AS MAY
    11  BE NECESSARY, IS HEREBY APPROPRIATED FROM THE STATE LOTTERY FUND
    12  TO THE DEPARTMENT OF PUBLIC WELFARE FOR FISCAL YEAR JULY 1,
    13  1992, TO JUNE 30, 1993, FOR MEDICAL ASSISTANCE LONG-TERM CARE
    14  FACILITIES FOR OLDER PENNSYLVANIANS.
    15     SECTION 5.  (A)  SECTION 360 OF THE ACT OF MARCH 4, 1971
    16  (P.L.6, NO.2), KNOWN AS THE TAX REFORM CODE OF 1971, IS
    17  REPEALED.
    18     (B)  SECTION 303 OF PART III OF THE ACT OF            (P.L.
    19  , NO.  ), KNOWN AS THE GENERAL APPROPRIATION ACT OF 1992, IS
    20  REPEALED.
    21     (C)  ALL OTHER ACTS AND PARTS OF ACTS ARE REPEALED INSOFAR AS
    22  THEY ARE INCONSISTENT WITH THIS ACT.
    23     SECTION 6.  THIS ACT SHALL TAKE EFFECT AS FOLLOWS:
    24         (1)  THE ADDITION OF SECTION 6.1 OF THE ACT SHALL TAKE
    25     EFFECT IN 60 DAYS.
    26         (2)  THE AMENDMENT OF SECTIONS 6(A)(11) AND 12(B) OF THE
    27     ACT SHALL TAKE EFFECT JULY 1, 1993.
    28         (3)  THE REMAINDER OF THIS ACT SHALL TAKE EFFECT JULY 1,
    29     1992, OR IMMEDIATELY, WHICHEVER OCCURS LATER.

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