PRINTER'S NO. 2028
No. 1714 Session of 1981
INTRODUCED BY J. L. WRIGHT, JUNE 25, 1981
REFERRED TO COMMITTEE ON STATE GOVERNMENT, JUNE 29, 1981
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 the allocation of money in the fund and
8 making editorially changes.
9 The General Assembly of the Commonwealth of Pennsylvania
10 hereby enacts as follows:
11 Section 1. Section 2, clause (11) of subsection (a) of
12 section 6 and section 12, act of August 26, 1971 (P.L.351,
13 No.91), known as the "State Lottery Law," amended October 17,
14 1980 (P.L.1088, No.184), are amended to read:
15 Section 2. Statement of Purpose.--This act is enacted to
16 establish a lottery to be operated by the State, the net
17 proceeds of which are to be used after June 30, 1972 for the
18 purposes of providing property tax relief for the elderly for
19 taxes paid in 1971 and thereafter to persons sixty-five years of
20 age or older and for providing certain free fixed route local
1 transit services to persons sixty-five years of age or older and
2 reduced fare on group ride transit service to persons sixty-five
3 years of age or older and to provide financial assistance for
4 the elderhostel program for persons sixty years of age or older.
5 It is further intended to provide a means through which to curb
6 illegal gambling operations in Pennsylvania.
7 Section 6. Powers and Duties of the Secretary of Revenue.--
8 (a) In addition to the powers and duties provided by law and
9 "The Administrative Code of 1929," the Secretary of Revenue
10 shall have the power and it shall be his duty to operate and
11 administer the lottery, and to promulgate rules and regulations
12 governing the establishment and operation thereof, including but
13 not limited to:
14 * * *
15 (11) The apportionment of the total revenues accruing from
16 the sale of lottery tickets or shares and from all other sources
17 among (i) the payment of prizes to the holders of winning
18 tickets or shares; (ii) the payment of costs incurred in the
19 operation and administration of the lottery, including the
20 expenses of the division and the costs resulting from any
21 contract or contracts entered into for promotional, advertising
22 or operational services or for the purchase or lease of lottery
23 equipment and materials; (iii) for the repayment of the moneys
24 appropriated to the State Lottery Fund pursuant to section 16 of
25 this act; and (iv) for property tax relief and free or reduced
26 fare transit service for the elderly and to provide financial
27 assistance for the elderhostel program for persons sixty years
28 of age or older as provided in section 12 of this act: Provided,
29 however, That no less than thirty per cent of the total revenues
30 accruing from the sale of lottery tickets or shares shall be
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1 dedicated to subclause (iv) above.
2 * * *
3 Section 12. Disposition of Funds from Sale of Tickets or
4 Shares.--(a) All moneys received from the operation of the
5 State lottery shall be deposited in a State Lottery Fund which
6 is hereby created. Such moneys shall be used to the extent
7 necessary for the payment of lottery prizes but the amount so
8 used shall not be less than forty per cent of the amount of
9 which tickets or shares have been sold. All payments of lottery
10 prizes and for expenses of operation of the lottery shall be
11 made as provided by law. All moneys remaining after payment of
12 prizes and operating expenses shall remain in the State Lottery
13 Fund and shall be allocated for the purpose of providing
14 property tax relief for the elderly for taxes paid in 1971 and
15 thereafter pursuant to the provisions of the act of March 11,
16 1971 (P.L.104, No.3), known as the "Senior Citizens Property Tax
17 or Rent Rebate and Older Persons Inflation Needs Act," and for
18 the purpose of providing free or reduced fare transit service
19 for the elderly pursuant to the act of January 22, 1968 (P.L.42,
20 No.8), known as the "Pennsylvania Urban Mass Transportation
21 [Assistance Law of 1967] Law," and the act of February 11, 1976
22 (P.L.14, No.10), known as the "Pennsylvania Rural and Intercity
23 Common Carrier Surface Transportation Assistance [Act."] Act"
24 and to provide financial assistance for the elderhostel program
25 for persons sixty years of age or older. In the event sufficient
26 funds are not available from the lottery receipts to meet the
27 requirements of the act of March 11, 1971 (P.L.104, No.3), known
28 as the "Senior Citizens Property Tax or Rent Rebate and Older
29 Persons Inflation Needs Act," or for providing free or reduced
30 fare transit service for the elderly under the act of January
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1 22, 1968 (P.L.42, No.8), known as the "Pennsylvania Urban Mass
2 Transportation [Assistance Law of 1967] Law," and the act of
3 February 11, 1976 (P.L.14, No.10), known as the "Pennsylvania
4 Rural and Intercity Common Carrier Surface Transportation
5 Assistance Act," additional funds to fulfill these obligations,
6 shall be appropriated from the General Fund for this purpose.
7 (b) The moneys in said State Lottery Fund shall be
8 appropriated only:
9 (1) For the payment of prizes to the holders of winning
10 lottery tickets or shares;
11 (2) For the expenses of the division in its operation of the
12 lottery;
13 (3) For property tax relief and free or reduced fare transit
14 service for the elderly and to provide financial assistance for
15 the elderhostel program for persons sixty years of age or older
16 as provided under section 12 of this act; and
17 (4) For transfer to the General Fund through June 30, 1972,
18 and for the repayment to the General Fund of the amount
19 appropriated to the fund pursuant to section 16 of this act.
20 Section 2. This act shall take effect in 60 days.
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