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                                                      PRINTER'S NO. 1422

THE GENERAL ASSEMBLY OF PENNSYLVANIA


HOUSE BILL

No. 1245 Session of 1999


        INTRODUCED BY HERMAN, TRELLO, MAHER, MANN, PESCI, RUFFING,
           SAINATO, SHANER, WILLIAMS, ARMSTRONG, BAKER, BARD, BARRAR,
           CAWLEY, CIVERA, L. I. COHEN, COLAFELLA, COY, CURRY, DALEY,
           DALLY, GANNON, HALUSKA, HARHAI, HENNESSEY, JAMES, LAUGHLIN,
           LEH, McCALL, MELIO, MICHLOVIC, MUNDY, ORIE, PLATTS, RAMOS,
           READSHAW, SEMMEL, SEYFERT, STABACK, STEELMAN, STERN, STURLA,
           E. Z. TAYLOR, WALKO, WILT, WOGAN AND YOUNGBLOOD,
           APRIL 13, 1999

        REFERRED TO COMMITTEE ON FINANCE, APRIL 13, 1999

                                     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 defining "income"; and further providing for
     8     determination of eligibility.

     9     The General Assembly of the Commonwealth of Pennsylvania
    10  hereby enacts as follows:
    11     Section 1.  The definition of "income" in section 502 of the
    12  act of August 26, 1971 (P.L.351, No.91), known as the State
    13  Lottery Law, added November 21, 1996 (P.L.741, No.134), is
    14  amended to read:
    15  Section 502.  Definitions.
    16     The following words and phrases when used in this chapter
    17  shall have the meanings given to them in this section unless the
    18  context clearly indicates otherwise:

     1     * * *
     2     "Income."  All income from whatever source derived,
     3  including, but not limited to, salaries, wages, bonuses,
     4  commissions, income from self-employment, alimony, support
     5  money, cash public assistance and relief, the gross amount of
     6  any pensions or annuities, including railroad retirement
     7  benefits, all benefits received under the Social Security Act
     8  (49 Stat. 620, 42 U.S.C. § 301 et. seq.) (except Medicare
     9  benefits), all benefits received under State unemployment
    10  insurance laws and veterans' disability payments, all interest
    11  received from the Federal Government or any state government or
    12  any instrumentality or political subdivision thereof, realized
    13  capital gains, rentals, workmen's compensation and the gross
    14  amount of loss of time insurance benefits, life insurance
    15  benefits and proceeds, except the first $5,000 of the total of
    16  death benefits payments, and gifts of cash or property, other
    17  than transfers by gift between members of a household, in excess
    18  of a total value of $300, but shall not include surplus food or
    19  other relief in kind supplied by a government agency or property
    20  tax rebate. All out-of-pocket medical costs and all costs of
    21  prescription drugs shall be deducted from income under the
    22  system established in section 503(b).
    23     * * *
    24     Section 2.  Section 503 of the act, added November 21, 1996
    25  (P.L.741, No.134), is amended to read:
    26  Section 503.  Determination of eligibility.
    27     (a)  General rule.--The department shall adopt regulations
    28  relating to the determination of eligibility of prospective
    29  claimants and providers, including dispensing physicians, and
    30  the determination and elimination of program abuse. To this end,
    19990H1245B1422                  - 2 -

     1  the department shall establish a compliance unit staffed
     2  sufficiently to fulfill this responsibility. The department
     3  shall have the power to declare ineligible any claimant or
     4  provider who abuses or misuses the established prescription
     5  plan. The department shall have the power to investigate cases
     6  of suspected provider or recipient fraud.
     7     (b)  System to determine eligibility.--The department shall
     8  establish a system to provide for the eligibility of individuals
     9  whose income exceeds the maximum annual income for PACE
    10  eligibility or whose income exceeds PACENET eligibility under
    11  section 519(b) but whose out-of-pocket medical or prescription
    12  drug expenses, when deducted from the individual's income, would
    13  reduce a claimant's income to the point of eligibility for PACE
    14  or PACENET.
    15     Section 3.  This act shall take effect in 60 days.










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