PRINTER'S NO. 945
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No.
799
Session of
2015
INTRODUCED BY READSHAW, QUINN, KORTZ, KAVULICH, D. COSTA, DEASY,
RAVENSTAHL, KINSEY, THOMAS, COHEN AND MURT, MARCH 17, 2015
REFERRED TO COMMITTEE ON GAMING OVERSIGHT, MARCH 17, 2015
AN ACT
Amending the act of August 26, 1971 (P.L.351, No.91), entitled
"An act providing for a State Lottery and administration
thereof; authorizing the creation of a State Lottery
Commission; prescribing its powers and duties; disposition of
funds; violations and penalties therefor; exemption of prizes
from State and local taxation and making an appropriation,"
further providing for statement of purpose; providing for
special lottery sales; establishing the Economic Development
Fund for Mass Transit; and further providing for disposition
of funds, for unclaimed prize money and for deposits and
transactions.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Section 301 of the act of August 26, 1971
(P.L.351, No.91), known as the State Lottery Law, amended
November 21, 1996 (P.L.741, No.134), is amended to read:
Section 301. Statement of purpose.
This chapter is enacted to establish a lottery to be operated
by the State, the net proceeds of which are to be used after
June 30, 1972, for the purposes of providing property tax relief
for the elderly for taxes paid in 1971 and thereafter to persons
65 years of age or older and for providing certain free fixed
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route local transit services to persons 65 years of age or older
and reduced fare on group ride transit service to persons 65
years of age or older. It is further intended to provide a means
through which to curb illegal gambling operations in
Pennsylvania[.] and to provide a source of funds for the
repayment of indebtedness on bonds issued for mass transit
development by a government agency or authority.
Section 2. The act is amended by adding a section to read:
Section 304.1. Special lottery sales.
(a) Special lotteries.--The secretary shall conduct annually
at least 12 lotteries for the purpose of providing a source of
funds for the repayment of indebtedness on bonds issued for the
development of mass transit as economic development projects by
a government agency or authority. For lotteries conducted for
this purpose, the price of each ticket or share shall be $5.
(b) Identification of special lotteries.--In all advertising
and on tickets, the secretary shall identify any lottery under
this section as being conducted for the benefit of the name and
location of the project.
(c) Deposit of revenues.--Notwithstanding the provisions of
section 303(a)(11), the secretary shall deposit all revenues
received under this section, following the payment of prizes to
holders of winning tickets or shares and the payment of costs
incurred in the operation and administration of the lottery,
including the expenses of the division and the costs resulting
from any contract or contracts entered into for promotional,
advertising or operational services or for the purchase or lease
of lottery equipment and materials in the special fund in the
State Treasury, to be known as the Economic Development Fund for
Mass Transit. Moneys in the Economic Development Fund for Mass
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Transit shall be used solely for the purposes described under
subsection (a).
(d) Unclaimed prize money.--Unclaimed prize money on a
winning lottery ticket or share sold under this section shall be
retained by the secretary for payment to the person entitled
thereto for one year after the drawing in which the prize was
won. If no claim is made within such period, the prize money
shall be paid into the Economic Development Fund for Mass
Transit and used for purposes provided under this section.
Section 3. Sections 311, 313 and 314 of the act, amended
November 21, 1996 (P.L.741, No.134), are amended to read:
Section 311. Disposition of funds.
(a) State Lottery Fund.--[All] Except as provided in section
304.1, moneys received from the operation of the State lottery
shall be deposited in a State Lottery Fund which is hereby
created. Such moneys shall be used to the extent necessary for
the payment of lottery prizes but the amount so used shall not
be less than 40% of the amount of which tickets or shares have
been sold. All payments of lottery prizes and for expenses of
operation of the lottery shall be made as provided by law. All
moneys remaining after payment of prizes and operating expenses
shall remain in the State Lottery Fund and shall be allocated
for the purpose of providing property tax relief for the elderly
for taxes paid in 1971 and thereafter pursuant to the provisions
of [the act of March 11, 1971 (P.L.104, No.3), known as the
Senior Citizens Rebate and Assistance Act] Chapter 13 of the act
of June 27, 2006 (1st Sp.Sess., P.L.1873, No.1), known as the
Taxpayer Relief Act, and for the purpose of providing free or
reduced fare transit service for the elderly pursuant to Chapter
9 and the act of February 11, 1976 (P.L.14, No.10), known as the
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Pennsylvania Rural and Intercity Common Carrier Surface
Transportation Assistance Act. In the event sufficient funds are
not available from the lottery receipts to meet the requirements
of the Senior Citizens Rebate and Assistance Act or for
providing free or reduced fare transit service for the elderly
under Chapter 9 and the Pennsylvania Rural and Intercity Common
Carrier Surface Transportation Assistance Act, additional funds
to fulfill these obligations shall be appropriated from the
General Fund for this purpose.
(b) Appropriations.--The moneys in said State Lottery Fund
shall be appropriated only:
(1) For the payment of prizes to the holders of winning
lottery tickets or shares.
(2) For the expenses of the division in its operation of
the lottery.
(3) For property tax relief and free or reduced fare
transit service for the elderly as provided under subsection
(a).
Section 313. Unclaimed prize money.
[Unclaimed] Except as provided in section 304.1, unclaimed
prize money on a winning lottery ticket or share shall be
retained by the secretary for payment to the person entitled
thereto for one year after the drawing in which the prize was
won. If no claim is made within such period, the prize money
shall be paid into the State Lottery Fund and used for purposes
as otherwise herein provided.
Section 314. Deposits and transactions.
The secretary may, in his discretion, require any or all
lottery sales agents to deposit to the credit of the State
Lottery Fund or, where applicable, the Economic Development Fund
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for Mass Transit, in banks, designated by the State Treasurer,
all moneys received by such agents from the sale of lottery
tickets or shares, less the amount, if any, retained as
compensation for the sale of the tickets or shares, and to file
with the secretary or his designated agents reports of their
receipts and transactions in the sale of lottery tickets in such
form and containing such information as he may require. The
secretary may make such arrangements for any person, including a
bank, to perform such functions, activities or services in
connection with the operation of the lottery as he may deem
advisable pursuant to this chapter and the rules and regulations
of the department, and such functions, activities or services
shall constitute lawful functions, activities and services of
such person.
Section 4. This act shall take effect in 60 days.
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