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| THE GENERAL ASSEMBLY OF PENNSYLVANIA |
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| HOUSE BILL |
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| INTRODUCED BY SANTONI, McCALL, EACHUS, DeWEESE, STURLA, J. TAYLOR, BRENNAN, CALTAGIRONE, BROWN, D. COSTA, FABRIZIO, GOODMAN, GALLOWAY, HARKINS, HARHAI, KOTIK, PAYTON, SEIP, SAINATO AND D. EVANS, APRIL 21, 2009 |
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| REFERRED TO COMMITTEE ON GAMING OVERSIGHT, APRIL 21, 2009 |
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| AN ACT |
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1 | Providing for tuition relief and for a video lottery program; |
2 | establishing penalties; and making appropriations. |
3 | The General Assembly of the Commonwealth of Pennsylvania |
4 | hereby enacts as follows: |
5 | CHAPTER 1 |
6 | GENERAL PROVISIONS |
7 | Section 101. Short title. |
8 | This act shall be known and may be cited as the Tuition |
9 | Relief Act. |
10 | Section 102. Definitions. |
11 | The following words and phrases when used in this act shall |
12 | have the meanings given to them in this section unless the |
13 | context clearly indicates otherwise: |
14 | "Account." The Enabling Students to Attend College Account. |
15 | "Agency." The Pennsylvania Higher Education Assistance |
16 | Agency. |
17 | "Applicant." A person who applies for a license under |
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1 | section 502(a). |
2 | "Central computer system." A central site computer system |
3 | controlled by the Department of Revenue that at all times is |
4 | connected to video lottery terminals and that, at a minimum, is |
5 | capable of monitoring, communicating, auditing, retrieving |
6 | information, generating games for and activating and disabling |
7 | each video lottery terminal. |
8 | "Cheating or thieving device." A device to facilitate the |
9 | alignment of any winning combination or to remove from any video |
10 | lottery terminal money or other contents. The term includes a |
11 | tool, drill, wire, coin or token attached to a string or wire |
12 | and any electronic or magnetic device. |
13 | "Coin-operated amusement machine." A machine that requires |
14 | the insertion of a coin, currency or tokens to play or activate |
15 | a game, the outcome of which is primarily determined by the |
16 | skill of the player. The term shall not include a video lottery |
17 | terminal. |
18 | "Community college." A public college operated under Article |
19 | XIX-A of the act of March 10, 1949 (P.L.30, No.14), known as the |
20 | Public School Code of 1949. |
21 | "Department." The Department of Revenue of the Commonwealth. |
22 | "Eligible student." A student who meets all of the |
23 | following: |
24 | (1) Is enrolled at the undergraduate level in a degree |
25 | or certificate program at a public institution of higher |
26 | education. |
27 | (2) Does not hold a bachelor's degree or its equivalent. |
28 | (3) Does one of the following: |
29 | (i) Participates in the scholarship program. |
30 | (ii) Meets the family income requirements under |
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1 | section 302(1). |
2 | "Enforcement Bureau." The Bureau of Liquor Control |
3 | Enforcement of the Pennsylvania State Police. |
4 | "Expected family contribution." A contribution as determined |
5 | under the policies and procedures established by the agency for |
6 | the scholarship program. |
7 | "Family income." Income as established by the agency for the |
8 | scholarship program. |
9 | "First-time student." An eligible student who has enrolled |
10 | in undergraduate level courses for the first time or is |
11 | readmitted to undergraduate level courses after a period of not |
12 | less than three years. The term shall include students enrolled |
13 | for the first time in the academic year who attended college in |
14 | the prior summer term or who entered with advanced standing due |
15 | to college credits earned before graduation from high school. |
16 | "Full-time student." An eligible student that meets the |
17 | definition of full-time student as defined in the act of January |
18 | 25, 1966 (1965 P.L.1546, No.541), referred to as the Higher |
19 | Education Scholarship Law. |
20 | "Fund." The College Tuition Relief Fund. |
21 | "Gaming machine." A device or machine that has the outcome |
22 | of play primarily determined by chance. The term shall include a |
23 | device that is not in working order or requires some mechanical |
24 | act of manipulation or repair to accomplish its adaptation, |
25 | conversion or workability. The term shall include an antique |
26 | slot machine under 18 Pa.C.S. § 5513(c) (relating to gambling |
27 | devices, gambling, etc.) when used for profit. The term shall |
28 | not include any of the following: |
29 | (1) A coin operated amusement machine. |
30 | (2) A video lottery terminal that has all of its seals |
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1 | or identification plates. |
2 | (3) Slot machines as defined under 4 Pa.C.S. § 1103 |
3 | (relating to definitions). |
4 | (4) A game of chance under the act of December 19, 1988 |
5 | (P.L.1262, No.156), known as the Local Option Small Games of |
6 | Chance Act. |
7 | (5) Lottery terminals used under the act of August 26, |
8 | 1971 (P.L.351, No.91), known as the State Lottery Law. |
9 | "Grocery store." A retail establishment, that is less than |
10 | 2,500 square feet or more than 8,500 square feet in size, |
11 | commonly known as a grocery store, supermarket or delicatessen, |
12 | where food, food products and supplies are sold for human |
13 | consumption on or off the premises with average monthly sales, |
14 | exclusive of wine sales, of not less than $5,000. The term shall |
15 | also include a licensed establishment with an interior |
16 | connection to a grocery store and the separate and segregated |
17 | portion of any other retail establishment which is dedicated |
18 | solely to the sale of food, food products and supplies for human |
19 | consumption on or off the premises with average monthly sales |
20 | with respect to the separate or segregated portion, exclusive of |
21 | wine sales, of not less than $5,000. |
22 | "Higher Education Scholarship Law." The act of January 25, |
23 | 1966 (1965 P.L.1546, No.541), referred to as the Higher |
24 | Education Scholarship Law. |
25 | "Licensed establishment." A restaurant, eating place, hotel |
26 | or club as defined under section 102 of the act of April 12, |
27 | 1951 (P.L.90, No.21), known as the Liquor Code, that operates |
28 | under a valid liquor or malt or brewed beverage license under |
29 | Article IV of the Liquor Code. The term shall not include a |
30 | grocery store or a licensed facility as defined under 4 Pa.C.S. |
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1 | § 1103 (relating to definitions). |
2 | "Licensed establishment owner." A person who holds a license |
3 | to sell liquor or malt or brewed beverages at a licensed |
4 | establishment. |
5 | "Liquor Code." The act of April 12, 1951 (P.L.90, No.21), |
6 | known as the Liquor Code. |
7 | "Mode of instruction." One of the following methods of |
8 | delivery of a public institution of higher education's |
9 | curriculum: |
10 | (1) In person. |
11 | (2) Via distance learning. |
12 | (3) A combination of paragraphs (1) and (2). |
13 | "Office of Administrative Law Judge." An adjudicative office |
14 | within the Pennsylvania Liquor Control Board charged with the |
15 | responsibility of presiding at all citation hearings and other |
16 | enforcement hearings under the act of April 12, 1951 (P.L.90, |
17 | No.21), known as the Liquor Code. |
18 | "Part-time student." An eligible student who is enrolled on |
19 | a less than full-time basis. |
20 | "Pennsylvania Lottery." The Division of the State Lottery of |
21 | the Department of Revenue. |
22 | "Person." Any natural person, corporation, foundation, |
23 | organization, business trust, estate, limited liability company, |
24 | licensed corporation, trust, partnership, association or any |
25 | other form of legal business entity. |
26 | "Profits." The total value of all cash, tickets and credits |
27 | used for the play of a video lottery terminal less the amount |
28 | paid out in prizes. The value of tickets and credits shall be as |
29 | determined by the secretary. |
30 | "Public institution of higher education." A community |
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1 | college or an institution which is part of the State System of |
2 | Higher Education under Article XX-A of the act of March 10, 1949 |
3 | (P.L.30, No.14), known as the Public School Code of 1949. |
4 | "Scholarship program." The scholarship program established |
5 | under the act of January 25, 1966 (1965 P.L.1546, No.541), |
6 | referred to as the Higher Education Scholarship Law. |
7 | "Secretary." The Secretary of Revenue of the Commonwealth. |
8 | "State Lottery Law." The act of of August 26, 1971 |
9 | (P.L.351, No.91), known as the State Lottery Law. |
10 | "Total cost of attendance." The cost of attending a public |
11 | institution of higher education as determined under the policies |
12 | and procedures established by the United States Department of |
13 | Education. |
14 | "Unfunded total cost of attendance." The total cost of |
15 | attendance minus the sum of all grants, scholarships, waivers |
16 | and other categories of gift-aid received, excluding veterans |
17 | educational benefits. |
18 | "Video lottery license." A license issued by the secretary |
19 | authorizing a licensed establishment owner to possess and |
20 | operate one or more video lottery terminals at the licensed |
21 | establishment specified in the application for licensure. |
22 | "Video lottery retailer." A licensed establishment owner |
23 | that holds a video lottery license. |
24 | "Video lottery terminal." An interactive electronic terminal |
25 | or device that is compatible with the central computer system |
26 | and is approved by the secretary for the play of video lottery |
27 | games. The term shall not include an authorized slot machine as |
28 | defined under 4 Pa.C.S. § 1103 (relating to definitions). |
29 | CHAPTER 3 |
30 | TUITION RELIEF |
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1 | Section 301. Expansion of State scholarship program. |
2 | (a) Supplemental grants.--Except as provided under |
3 | subsections (b), (c), (d) and (e) the agency shall award a |
4 | supplemental grant to an eligible student participating in the |
5 | scholarship program so that the eligible student's unfunded |
6 | total cost of attendance is equal to the eligible student's |
7 | expected family contribution. |
8 | (b) Minimum unfunded cost.--The unfunded cost of attendance |
9 | may not be less than $1,000 annually on a full-time equivalent |
10 | basis. |
11 | (c) Contribution up to $2,000.--In the case of an eligible |
12 | student whose expected family contribution is between one dollar |
13 | and $2,000, the unfunded total cost of attendance shall be |
14 | $1,000 annually on a full-time equivalent basis in the first and |
15 | second years of attendance, $1,500 on a full-time equivalent |
16 | basis in the third year of attendance and $2,000 on a full-time |
17 | equivalent basis in the fourth year of attendance. |
18 | (d) Supplemental grant minimum.--Except as provided under |
19 | subsections (b), (c) and (e), the supplemental grant shall not |
20 | be less than 75% of the tuition rate of the public institution |
21 | of higher education applicable to the eligible student's status |
22 | as a full-time or part-time student. |
23 | (e) Total cost.--The total amount of all grants, |
24 | scholarships, waivers and other categories of gift aid, |
25 | excluding veterans educational benefits, received by an eligible |
26 | student may not exceed the eligible student's total cost of |
27 | attendance. |
28 | Section 302. Tuition relief for additional Commonwealth |
29 | students. |
30 | The agency shall award a tuition grant to an eligible student |
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1 | who is not eligible for a supplemental grant under section 301 |
2 | under the following conditions: |
3 | (1) The student's family income does not exceed |
4 | $100,000. |
5 | (2) The tuition grant shall be equal to 50% of the |
6 | tuition rate of the public institution of higher education |
7 | applicable to the eligible student's status as a full-time or |
8 | part-time student, except that the total amount of all |
9 | grants, scholarships, waivers and other categories of gift- |
10 | aid, excluding veterans educational benefits, may not exceed |
11 | the total cost of attendance and that the unfunded total cost |
12 | of attendance may not be less than $1,000 annually on a full- |
13 | time equivalent basis. |
14 | (3) A student whose scholarship under the scholarship |
15 | program is terminated, denied or not renewed for reasons |
16 | other than financial need, part-time enrollment status, |
17 | remedial content that does not exceed guidelines for the |
18 | Federal Pell grant program or mode of instruction may not |
19 | qualify for a grant under this section. |
20 | Section 303. Implementation. |
21 | (a) Awards.--Awards granted in the first year that grants |
22 | are awarded under this chapter shall be limited to first-time |
23 | students at public institutions of higher education. One |
24 | additional class of first-time students shall be added in each |
25 | subsequent year until the time as all classes of eligible |
26 | students at the public institution of higher education are |
27 | included. Nothing in this subsection shall limit the ability of |
28 | an eligible student who receives a grant under this chapter to |
29 | remain eligible for a grant upon returning from a gap in |
30 | enrollment, if all other eligibility requirements are met. |
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1 | (b) Part-time student.--In the case of a part-time student, |
2 | the amount of the grant under this chapter to which the eligible |
3 | student is entitled shall be reduced in proportion to the degree |
4 | to which that student is not attending on a full-time basis, |
5 | except that the total funds awarded to any eligible student |
6 | shall not exceed the amount to which the student would have been |
7 | entitled had the educational program been completed in the |
8 | standard duration for a full-time student as established by the |
9 | agency. |
10 | (c) Reduction.--If sufficient funds are not transferred to |
11 | the agency under section 304 for the award of grants under this |
12 | chapter, all grants under this chapter shall be proportionately |
13 | reduced so as not to exceed the total amount of available funds. |
14 | (d) Scholarship program hold harmless.--It is the intent of |
15 | the General Assembly that the transfers to the agency for the |
16 | purpose of awarding grants to eligible students under this |
17 | chapter shall supplement, not supplant, grants made by the |
18 | agency under the scholarship program. In no fiscal year after |
19 | the effective date of this section shall the number and value of |
20 | grants awarded by the agency under the scholarship program be |
21 | less than the number and value of the grants awarded to students |
22 | in the 2008-2009 fiscal year. |
23 | (e) Room and board.--The total cost of attendance at a |
24 | community college shall not include room and board for the |
25 | purpose of this chapter. |
26 | (f) Domicile, renewal and transfer.--All provisions |
27 | regarding domicile, citizenship, renewal of scholarship and |
28 | transfers established by the agency for the scholarship program |
29 | shall apply to tuition grants awarded under this chapter. |
30 | Section 304. Transfer. |
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1 | The Office of the Budget shall annually transfer proceeds |
2 | from the fund to the agency as follows: |
3 | (1) As of July 15, 2009, and April 15 of each year |
4 | thereafter, the Secretary of the Budget shall certify the |
5 | total amount of revenue that will be available for transfer. |
6 | In calculating the total amount of available revenue, the |
7 | Secretary of the Budget shall take into account all of the |
8 | following: |
9 | (i) (A) For the certification to be completed no |
10 | later than July 15, 2009, revenue which: |
11 | (I) has been advanced by the Commonwealth or |
12 | appropriated by the General Assembly to or |
13 | deposited into the fund prior to the date of |
14 | certification; and |
15 | (II) is reasonably projected to be deposited |
16 | into the fund during the six months following the |
17 | date on which the certification is made. |
18 | (B) The certification under this subparagraph |
19 | shall be applicable to the fiscal year in which |
20 | certification is made. The Secretary of the Budget |
21 | shall only certify an amount that is sustainable in |
22 | subsequent years. |
23 | (ii) (A) For certifications for fiscal years after |
24 | 2009-2010, revenue which: |
25 | (I) has been advanced by the Commonwealth or |
26 | appropriated by the General Assembly to or |
27 | deposited into the fund since the conclusion of |
28 | the period which the prior certification covered; |
29 | and |
30 | (II) is reasonably projected to be deposited |
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1 | into the fund during the six months following the |
2 | date on which the certification is made. |
3 | (B) The certifications under this subparagraph |
4 | shall be applicable to the fiscal year following the |
5 | fiscal year in which certification is made. The |
6 | Secretary of the Budget shall only certify an amount |
7 | that is sustainable in subsequent years. |
8 | (2) If the actual revenue deposited into the fund during |
9 | the period which a certification covers exceeds projections, |
10 | any revenue in excess of the projections shall remain in the |
11 | fund and may be included in the certification for the |
12 | subsequent fiscal year. |
13 | (3) For the 2009-2010 fiscal year, the Office of the |
14 | Budget shall transfer the amount certified under paragraph |
15 | (1) to the agency by a payment no later than the first day of |
16 | September and a second payment no later than the first day of |
17 | February. For the 2010-2011 fiscal year and each fiscal year |
18 | thereafter, the Office of the Budget shall transfer the |
19 | amount certified under paragraph (1) to the agency by a |
20 | payment no later than the first day of August and a second |
21 | payment no later than the first day of January. |
22 | (4) Any portion of the transfer that the agency does not |
23 | expend in order to comply with this chapter shall be returned |
24 | to the fund and may be included in the certification for the |
25 | subsequent fiscal year. |
26 | CHAPTER 5 |
27 | FUNDING FOR COLLEGE TUITION RELIEF |
28 | Section 501. Video lottery. |
29 | (a) Provision.--The secretary, by the authority granted |
30 | under the State Lottery Law, shall provide for video lottery |
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1 | through use of video lottery terminals by video lottery |
2 | retailers. Except as set forth under this act, video lottery |
3 | games shall be operated and administered in conformity with the |
4 | provisions of the State Lottery Law. |
5 | (b) Placement.--A video lottery terminal may be placed for |
6 | operation only on the premises of a licensed establishment at |
7 | which a video lottery retailer is authorized to place and |
8 | operate a video lottery terminal under this chapter. A video |
9 | lottery terminal may not be placed in any other location. |
10 | (c) Amount.--No more than five video lottery terminals may |
11 | be placed on the premises of a licensed establishment. |
12 | (d) Applicability.--The act of December 19, 1988 (P.L.1262, |
13 | No.156), known as the Local Option Small Games of Chance Act, |
14 | shall not apply to this act. |
15 | Section 502. Licensing. |
16 | (a) Eligibility.--A licensed establishment owner may apply |
17 | to the secretary for a video lottery license under this section |
18 | on a form prescribed by the secretary if all of the following |
19 | conditions are met: |
20 | (1) The license to sell liquor or malt or brewed |
21 | beverages at the licensed establishment is valid and in |
22 | effect and is not in safekeeping or under suspension at the |
23 | time the application is filed. |
24 | (2) The licensed establishment owner is in good standing |
25 | with the Pennsylvania Liquor Control Board. |
26 | (3) The licensed establishment owner agrees to have |
27 | sufficient funds available at the licensed establishment to |
28 | pay out anticipated prizes. |
29 | (b) Requirements.--The following shall apply to video |
30 | lottery licenses issued under this section: |
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1 | (1) A video lottery license may be issued at the |
2 | discretion of the secretary. Nothing in this chapter is |
3 | intended or shall be construed to create an entitlement to a |
4 | license by any person. |
5 | (2) Before issuing a video lottery license, the |
6 | secretary shall consider at least the following factors: |
7 | (i) The financial fitness, responsibility and |
8 | security of the applicant and the applicant's business. |
9 | (ii) The volume of expected number of plays on a |
10 | video lottery terminal at the licensed establishment. |
11 | (3) (i) Notwithstanding subparagraph (ii), if the |
12 | secretary finds that the experience, character and |
13 | general fitness of the applicant and any officers, |
14 | directors, stockholders and partners of the applicant and |
15 | any other person that shares or will share in the profits |
16 | or participates or will participate in the management of |
17 | the affairs of the applicant are such that the |
18 | participation of the applicant as a video lottery |
19 | retailer will be consistent with the public interest, |
20 | convenience and necessity, the secretary may grant a |
21 | video lottery license to the applicant. |
22 | (ii) The secretary may refuse to issue a license |
23 | under this section, or may suspend or revoke a license, |
24 | if: |
25 | (A) The applicant or licensee or an officer, |
26 | director, stockholder or partner of the applicant or |
27 | any other person that shares or will share in the |
28 | profits or participates or will participate in the |
29 | management of the affairs of the applicant: |
30 | (I) Has been convicted of a crime involving |
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1 | moral turpitude. |
2 | (II) Has been convicted of pool selling or |
3 | bookmaking under 18 Pa.C.S. § 5514 (relating to |
4 | pool selling and bookmaking) or other form of |
5 | illegal gambling. |
6 | (III) Has been convicted of any fraud or |
7 | misrepresentation in any context. |
8 | (IV) Has violated any rule, regulation or |
9 | order of the department. |
10 | (B) The applicant is not the owner or lessee of |
11 | the licensed establishment where it intends to |
12 | conduct video lottery. |
13 | (C) A person other than the applicant shares or |
14 | will share in the profits of the applicant other than |
15 | as a bona fide owner of a financial interest in the |
16 | applicant or participates or will participate in the |
17 | management of the affairs of the applicant other than |
18 | as a bona fide manager of the operations of the |
19 | licensed establishment. |
20 | (4) The secretary may issue a temporary video lottery |
21 | license upon the terms and conditions as the secretary deems |
22 | necessary, desirable or proper to effectuate the provisions |
23 | of this chapter. |
24 | (5) The secretary shall refuse to grant or renew a video |
25 | lottery license and shall suspend and may revoke the video |
26 | lottery license of any video lottery retailer that is not |
27 | compliant with the tax laws of this Commonwealth. |
28 | (c) Lottery tickets.--A video lottery retailer may be |
29 | required to sell Pennsylvania Lottery tickets as determined by |
30 | the secretary. |
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1 | (d) Application fees.--An applicant for a video lottery |
2 | license shall pay a nonrefundable initial license application |
3 | fee of $500 and a nonrefundable annual license renewal fee of |
4 | $100. The fees collected under this subsection shall be |
5 | deposited in the account. |
6 | (e) Third-party disclosure.--Each video lottery license |
7 | applicant or licensee shall accept any risk of adverse public |
8 | notice, embarrassment, criticism, damages or financial loss, |
9 | which may result from disclosure or publication by a third party |
10 | of material or information received by the department in |
11 | connection with an application or license. The video lottery |
12 | license applicant or licensee shall expressly waive any and all |
13 | claims against the secretary, the department, the Commonwealth |
14 | and its employees from damages as a result of disclosure or |
15 | publication by a third party of any material or information |
16 | supplied or developed under this section. |
17 | Section 503. Central computer system. |
18 | The secretary shall establish a protocol for the use of a |
19 | central computer system. All licensed video lottery terminals |
20 | must be linked at all times to the central computer system. |
21 | Section 504. Video lottery terminal. |
22 | In addition to the requirements established by the secretary |
23 | under the State Lottery Law for lottery terminals, a video |
24 | lottery terminal: |
25 | (1) Shall be linked to and have the ability to interact |
26 | with the central computer system. |
27 | (2) Shall not directly dispense coins, cash, tokens or |
28 | any other article of exchange or value that represents |
29 | winnings, except for tickets. The ticket shall indicate the |
30 | total amount of credits and the cash value of winnings or |
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1 | prizes, and the player shall turn in the ticket to the |
2 | appropriate person at the licensed establishment to receive |
3 | the cash award. |
4 | (3) Shall not award a ticket or prize with a value in an |
5 | amount equal to or greater than $600 for any individual play |
6 | or other amount as determined by the secretary and published |
7 | in the Pennsylvania Bulletin from time to time. |
8 | (4) Shall not pay out less than a theoretical payout |
9 | percentage. The secretary may adopt regulations that set and |
10 | define the theoretical payout percentage of video lottery |
11 | play, which shall not be less than 80%. |
12 | Section 505. Fees. |
13 | In addition to the application fee under section 502(d) a |
14 | video lottery retailer shall pay at times determined by the |
15 | secretary but no more frequently than annually, a fee of $500 |
16 | per video lottery terminal or other amount as determined by the |
17 | secretary, and published in the Pennsylvania Bulletin. The fees |
18 | shall be deposited in the account. |
19 | Section 506. College Tuition Relief Fund. |
20 | (a) Establishment.-- |
21 | (1) There is established a separate fund in the State |
22 | Treasury to be known as the College Tuition Relief Fund. |
23 | (2) A restricted receipts account to be known as the |
24 | Enabling Students to Attend College Account is established |
25 | within the fund. |
26 | (b) Deposits.--Notwithstanding section 311(a) of the State |
27 | Lottery Law, money shall be deposited as follows: |
28 | (1) All fees, fines and penalties imposed under this |
29 | chapter shall be deposited into the account as collected. |
30 | (2) All profits from the play of a video lottery |
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1 | terminal and proceeds seized under section 507(e) shall be |
2 | deposited into the fund. |
3 | (c) Distributions.-- |
4 | (1) Money in the account shall be distributed to the |
5 | department, the Pennsylvania Liquor Control Board and the |
6 | Pennsylvania State Police for the cost of carrying out their |
7 | respective obligations under this chapter and are |
8 | appropriated on a continuing basis for that purpose. The |
9 | costs shall include the start-up and ongoing cost of the |
10 | central computer system, video lottery terminals and the |
11 | administration and enforcement of this chapter. Payments to |
12 | the department, the Pennsylvania Liquor Control Board and the |
13 | Pennsylvania State Police shall be based on annual budgets |
14 | submitted through the Office of the Budget. |
15 | (2) Money in the fund shall be distributed pursuant to |
16 | this paragraph. The money is appropriated on a continuing |
17 | basis for that purpose. The following shall apply: |
18 | (i) Money in the fund representing 25% of the |
19 | profits from a video lottery terminal shall be |
20 | distributed to the video lottery retailer holding the |
21 | video lottery license permitting the operation of the |
22 | terminal. |
23 | (ii) Money in the fund representing 50% of the |
24 | profits from all video lottery terminals shall remain in |
25 | the fund to be used for the program under Chapter 3. |
26 | (iii) The balance of money in the fund shall be paid |
27 | first to the department, to the Pennsylvania Liquor |
28 | Control Board and to the Pennsylvania State Police for |
29 | any amount needed to pay the costs under paragraph (1) |
30 | not funded by money in the account and then to the |
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1 | General Fund. |
2 | (d) State Lottery Fund hold harmless.--If, on June 15, 2010, |
3 | and June 15 of each year thereafter, the secretary determines |
4 | that a decrease in the revenue deposited in that fiscal year in |
5 | the State Lottery Fund is due to the play of video lottery |
6 | terminals in this Commonwealth, the secretary shall certify the |
7 | amount of the decrease due to the play. The secretary’s |
8 | determination shall be based upon an audit or other report of an |
9 | independent expert with respect to such decrease. A sum equal to |
10 | the amount of the decrease shall be deducted from the amount to |
11 | be distributed to the General Fund under subsection (c)(2)(iii) |
12 | in the next fiscal year and deposited in the State Lottery Fund. |
13 | The cost of the audit or independent report may be included in |
14 | the costs of the department to be funded from money in the |
15 | account under subsection (c)(1). |
16 | Section 507. Enforcement. |
17 | (a) Unlawful acts.--Except as provided under subsections (b) |
18 | and (c), it shall be unlawful for any person to do any of the |
19 | following: |
20 | (1) To operate or attempt to operate a video lottery |
21 | terminal or to receive a prize or attempt to receive a prize |
22 | from a video lottery terminal if the person is under 21 years |
23 | of age. |
24 | (2) To permit an individual under 21 years of age to |
25 | play a video lottery terminal or provide a prize to an |
26 | individual under 21 years of age as a result of playing a |
27 | video lottery terminal. |
28 | (3) To permit a visibly intoxicated patron to play a |
29 | video lottery terminal. |
30 | (4) To possess a gaming machine. |
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1 | (5) To install or operate more video lottery terminals |
2 | in a licensed establishment than permitted by the department. |
3 | (6) To possess a video lottery terminal without holding |
4 | a current video lottery license. |
5 | (7) To possess or use or permit any person to possess or |
6 | use a cheating or thieving device. |
7 | (8) To provide false information or documents in or with |
8 | respect to an application for a video lottery license or in |
9 | or with respect to any other information or document required |
10 | in the administration of this chapter. |
11 | (9) To possess a video lottery terminal with altered or |
12 | missing identification. |
13 | (10) To alter or remove or to permit the alteration or |
14 | removal of the identification plate on a video lottery |
15 | terminal. |
16 | (11) To tamper or permit tampering with the connection |
17 | of the video lottery terminal to the central computer system. |
18 | (12) To award or permit the award of a prize in excess |
19 | of the amount established under section 504 for an individual |
20 | play. |
21 | (13) To fail to report or pay or to fail to truthfully |
22 | account for and pay any license fee or other amount imposed |
23 | under this chapter. |
24 | (14) To attempt in any manner to evade or defeat the |
25 | payment of any license fee or other amount imposed under this |
26 | chapter. |
27 | (15) To permit a video lottery terminal to be |
28 | transported to or repaired or opened on the premises of a |
29 | licensed establishment by a person other than a person |
30 | authorized by the secretary. |
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1 | (16) To use currency other than lawful coin or legal |
2 | tender of the United States or a coin not of the same |
3 | denomination as the coin required to be used in the video |
4 | lottery terminal. |
5 | (17) To possess any device, equipment or material which |
6 | the person knows has been manufactured, distributed, sold, |
7 | tampered with or serviced in violation of this chapter with |
8 | the intent to use the device, equipment or material as though |
9 | it had been manufactured, distributed, sold, tampered with or |
10 | serviced under this chapter. |
11 | (18) To sell, offer for sale, represent or pass off as |
12 | lawful any device, equipment or material which the person |
13 | knows has been manufactured, distributed, sold, tampered with |
14 | or serviced in violation of this chapter. |
15 | (19) To violate or knowingly permit the violation of any |
16 | provision of this chapter. |
17 | (b) Compliance checks.--Notwithstanding any provision of |
18 | law, the enforcement bureau may conduct compliance checks in |
19 | licensed establishments. An individual who is under 21 years of |
20 | age may play a video lottery terminal and receive a prize from |
21 | playing the video lottery terminal in a licensed establishment |
22 | if all of the following apply: |
23 | (1) The individual is at least 18 years of age. |
24 | (2) The individual is an officer, employee or intern of |
25 | the enforcement bureau. |
26 | (3) The individual has completed training specified by |
27 | the enforcement bureau. |
28 | (4) The individual is acting within the scope of |
29 | prescribed duties. |
30 | (5) The individual is acting under the direct control or |
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1 | supervision of an enforcement bureau officer who is at least |
2 | 21 years of age. |
3 | (c) Cheating device.--An authorized employee of the |
4 | enforcement bureau or an authorized employee of the department |
5 | may possess and use a cheating or thieving device, counterfeit |
6 | or altered billet, ticket, token or similar objects accepted by |
7 | a video lottery terminal or counterfeit or altered video lottery |
8 | terminal-issued tickets or credits in performance of the duties |
9 | of employment. |
10 | (d) Criminal penalties.--In addition to any other penalties |
11 | provided by law, the following shall apply: |
12 | (1) The provisions of 18 Pa.C.S. § 4902 (relating to |
13 | perjury), § 4903 (relating to false swearing) or § 4904 |
14 | (relating to unsworn falsification to authorities) shall |
15 | apply to any person providing information or making any |
16 | statement, whether written or oral, as required under this |
17 | chapter. |
18 | (2) A person convicted of violating subsection (a)(1), |
19 | (2) and (3) commits a summary offense. |
20 | (3) Except for subsection (a)(1), (2) and (3), a person |
21 | convicted of violating any of the provisions of subsection |
22 | (a) commits a misdemeanor of the first degree and shall pay a |
23 | fine of not less than $5,000. Except for subsection (a)(1), |
24 | (2) and (3), a person convicted of violating any of the |
25 | provisions of subsection (a) that is convicted of a second or |
26 | subsequent violation commits a felony of the second degree |
27 | and shall pay a fine of not less than $15,000. |
28 | (e) Seizure, forfeiture and destruction of gaming |
29 | machines.-- |
30 | (1) Gaming machines shall be considered to be per se |
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1 | illegal. Gaming machines and the proceeds therefrom may be |
2 | seized upon view as illegal contraband by the enforcement |
3 | bureau and any other law enforcement agency. The owner of a |
4 | gaming machine shall have no right to compensation for the |
5 | seizure and destruction of a gaming machine or the seizure of |
6 | proceeds of the gaming machine. |
7 | (2) (i) Notwithstanding any other provision of law, the |
8 | Office of Administrative Law Judge shall have the |
9 | authority to order forfeiture to the Commonwealth of |
10 | gaming machines and proceeds from the gaming machines |
11 | seized by the enforcement bureau and destruction of the |
12 | gaming machine. |
13 | (ii) Upon adjudication following a hearing, the |
14 | bureau may initiate forfeiture proceedings under this |
15 | section by filing a motion with the Office of |
16 | Administrative Law Judge. |
17 | (iii) The motion may be filed at any time following |
18 | the issuance of the adjudication and disposition of all |
19 | appeals. The motion shall include all of the following: |
20 | (A) A list and description of the property to be |
21 | forfeited. |
22 | (B) The time and place of seizure. |
23 | (C) The person in possession at time of seizure. |
24 | (D) The owner, if known. |
25 | (E) An attestation that the enforcement bureau |
26 | has sent a copy of the motion and a notice of |
27 | forfeiture to the video lottery retailer or to the |
28 | owner or possessor of the gaming machine by certified |
29 | mail at the last known address on file with the |
30 | Pennsylvania Liquor Control Board. |
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1 | (iv) The notice of forfeiture under subparagraph |
2 | (iii)(E) shall state that the gaming machines will be |
3 | destroyed and proceeds will be forfeited to the |
4 | Commonwealth by operation of law, unless the licensed |
5 | establishment owner or possessor of the gaming machine |
6 | files a written objection with the Office of |
7 | Administrative Law Judge setting forth a right of |
8 | possession of the seized property. The written objection |
9 | must be postmarked within 30 days of the mailing date of |
10 | the notice. |
11 | (v) The Office of Administrative Law Judge shall |
12 | issue an order of forfeiture and destruction if the |
13 | Administrative Law Judge is satisfied that the |
14 | requirements of this subsection have been met. |
15 | (vi) Upon receipt of a written objection to |
16 | forfeiture and destruction from the licensed |
17 | establishment owner or possessor of the gaming machine, |
18 | the Office of Administrative Law Judge shall issue an |
19 | order denying the motion for an order of forfeiture and |
20 | destruction. |
21 | (vii) The licensed establishment owner, owner or |
22 | possessor of the gaming machine or enforcement bureau |
23 | shall have a right of appeal from an order issued under |
24 | subparagraph (v) or (vi) in accordance with the |
25 | procedures under section 471 of the Liquor Code for |
26 | appeals of adjudications issued by the Office of |
27 | Administrative Law Judge, except that any appeal will not |
28 | place in issue the finding of fact, conclusion of law or |
29 | sanction of the underlying adjudication. |
30 | (3) This subsection shall apply to cases involving |
|
1 | gaming machines and proceeds seized by the enforcement bureau |
2 | prior to the effective date of this subsection. |
3 | (f) Administrative sanctions.-- |
4 | (1) In addition to any other sanction, penalty or remedy |
5 | authorized by law or regulation, the secretary may impose any |
6 | sanction, penalty or remedy for a violation of this chapter |
7 | that is also available to the secretary under the State |
8 | Lottery Law. |
9 | (2) The Office of Administrative Law Judge shall impose |
10 | all of the following penalties with respect to an order of |
11 | forfeiture and destruction issued under subsection (e): |
12 | (i) For a first violation, a penalty of at least |
13 | $1,000 and not more than $5,000 against the owner or |
14 | possessor of a gaming machine seized by the bureau of |
15 | enforcement and for each subsequent violation, a penalty |
16 | of $15,000. |
17 | (ii) In the case of a gaming machine seized from a |
18 | licensed establishment, for a first violation, a |
19 | suspension of the licensed establishment owner’s liquor |
20 | license for not less than seven consecutive days and for |
21 | each subsequent violation, a suspension of the liquor |
22 | license for not less than 14 consecutive days. |
23 | (3) The Office of Administrative Law Judge shall impose |
24 | all of the following penalties with respect to any violation |
25 | of this chapter: |
26 | (i) For a first violation, a penalty of at least |
27 | $1,000 and not more than $5,000 and for each subsequent |
28 | violation, a penalty of $15,000. |
29 | (ii) For a first violation by a video lottery |
30 | retailer, a suspension of the liquor license held by the |
|
1 | video lottery retailer for each licensed establishment |
2 | where the video lottery retailer operates video lottery |
3 | terminals under a video lottery license and for each |
4 | subsequent violation, a suspension of each such liquor |
5 | license for not less than 14 consecutive days. |
6 | (4) A liquor license suspension imposed under paragraph |
7 | (2) or (3) shall begin within 30 days following the |
8 | imposition of the suspension. |
9 | Section 508. Local taxes and fees. |
10 | Video lottery terminals shall not be exempt from taxes and |
11 | amusement fees imposed by local municipalities. |
12 | Section 509. Exemption from State gaming laws. |
13 | The following provisions shall not apply to video lottery |
14 | terminals authorized under this chapter and their use as |
15 | authorized under this chapter: |
16 | (1) 4 Pa.C.S. Pt. II (relating to gaming). |
17 | (2) 18 Pa.C.S. § 5513 (relating to gambling devices, |
18 | gambling, etc.). |
19 | (3) The act of December 19, 1988 (P.L.1262, No.156), |
20 | known as the Local Option Small Games of Chance Act. |
21 | Section 510. Exemption from Federal regulation. |
22 | The General Assembly declares that the Commonwealth is exempt |
23 | from section 2 of the Gambling Devices Transportation Act (64 |
24 | Stat. 1134, 15 U.S.C. § 1172). Shipments of approved video |
25 | lottery terminals into this Commonwealth in compliance with |
26 | sections 3 and 4 of the Gambling Devices Transportation Act (15 |
27 | U.S.C. §§ 1173 and 1174) shall be deemed legal shipments into |
28 | this Commonwealth. |
29 | CHAPTER 51 |
30 | MISCELLANEOUS PROVISIONS |
|
1 | Section 5101. Severability. |
2 | The provisions of this act are severable. If any provision of |
3 | this act or its application to any person or circumstance is |
4 | held invalid, the invalidity shall not affect other provisions |
5 | or applications of this act which can be given effect without |
6 | the invalid provision or application. |
7 | Section 5102. Legislative intent. |
8 | The General Assembly finds that the cost of attending a |
9 | public community college or State university is increasingly out |
10 | of reach for Pennsylvania families. Therefore, the General |
11 | Assembly declares that the authorization of video lottery for |
12 | the purpose of raising funds to provide scholarships for |
13 | individuals seeking higher education is in the public interest. |
14 | The intent of the General Assembly is to confirm the authority |
15 | of the secretary under the State Lottery Law to conduct video |
16 | lottery and that the video lottery games are outside and |
17 | unrelated to gaming as authorized under 4 Pa.C.S. Pt. II |
18 | (relating to gaming). |
19 | Section 5103. Temporary regulations. |
20 | (a) Promulgation.--In order to facilitate the prompt |
21 | implementation of Chapter 5, the department may promulgate |
22 | temporary regulations which shall not be subject to: |
23 | (1) Sections 201, 202 and 203 of the act of July 31, |
24 | 1968 (P.L.769, No.240), referred to as the Commonwealth |
25 | Documents Law. |
26 | (2) The act of June 25, 1982 (P.L.633, No.181), known as |
27 | the Regulatory Review Act. |
28 | (b) Expiration.--The authority provided to the department to |
29 | adopt temporary regulations under subsection (a) shall expire |
30 | two years from the effective date of this section. Regulations |
|
1 | adopted after the two-year period shall be promulgated as |
2 | provided by law. |
3 | Section 5104. Appropriations. |
4 | (a) Department appropriations.--The sum of $20,000,000 is |
5 | appropriated from the General Fund to the Department of Revenue |
6 | for the fiscal period July 1, 2009, to June 30, 2010, to prepare |
7 | for, implement and administer the provisions of this act. The |
8 | money appropriated under this subsection shall be considered a |
9 | loan from the General Fund and shall be repaid to the General |
10 | Fund. The appropriation shall be a two-year appropriation and |
11 | shall not lapse until June 30, 2011. |
12 | (b) Pennsylvania Liquor Control Board appropriations.--The |
13 | sum of $2,000,000 is appropriated from the General Fund to the |
14 | Liquor Control Board for the fiscal period July 1, 2009, to June |
15 | 30, 2010, to prepare for, implement and administer the |
16 | provisions of this act. The money appropriated under this |
17 | subsection shall be considered a loan from the General Fund and |
18 | shall be repaid to the General Fund. The appropriation shall be |
19 | a two-year appropriation and shall not lapse until June 30, |
20 | 2011. |
21 | (c) Pennsylvania State Police appropriations.--The sum of |
22 | $3,000,000 is appropriated from the General Fund to the |
23 | enforcement bureau of the Pennsylvania State Police for the |
24 | fiscal period July 1, 2009, to June 30, 2010, to prepare for, |
25 | implement and administer the provisions of this act. The money |
26 | appropriated under this section shall be considered a loan from |
27 | the General Fund and shall be repaid to the General Fund. The |
28 | appropriation shall be a two-year appropriation and shall not |
29 | lapse until June 30, 2011. |
30 | Section 5105. Effective date. |
|
1 | This act shall take effect immediately. |
|