PRINTER'S NO. 4105
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No.
2428
Session of
2015
INTRODUCED BY ADOLPH, OCTOBER 24, 2016
REFERRED TO COMMITTEE ON GAMING OVERSIGHT, OCTOBER 24, 2016
AN ACT
Amending Title 4 (Amusements) of the Pennsylvania Consolidated
Statutes, in revenues relating to gaming, further providing
for establishment of State Gaming Fund and net slot machine
revenue distribution.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Section 1403(b) and (c) of Title 4 of the
Pennsylvania Consolidated Statutes are reenacted and amended to
read:
§ 1403. Establishment of State Gaming Fund and net slot machine
revenue distribution.
* * *
(b) Slot machine tax.--The department shall determine and
each slot machine licensee shall pay a daily tax of 34% from its
daily gross terminal revenue from the slot machines in operation
at its facility and [a local share assessment] an annual fee as
provided in subsection (c). All funds owed to the Commonwealth,
a county or a municipality under this section shall be held in
trust by the licensed gaming entity for the Commonwealth, the
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
county and the municipality until the funds are paid or
transferred to the fund. Unless otherwise agreed to by the
board, a licensed gaming entity shall establish a separate bank
account to maintain gross terminal revenue until such time as
the funds are paid or transferred under this section. Moneys in
the fund are hereby appropriated to the department on a
continuing basis for the purposes set forth in subsection (c).
(c) Transfers and distributions.--The department shall:
(1) Transfer the slot machine tax and [assessment]
annual fee imposed in subsection (b) to the fund.
(2) From the [local share assessment] annual fee
established in subsection (b), make quarterly distributions
among the counties hosting a licensed facility in accordance
with the following schedule:
(i) If the licensed facility is a Category 1
licensed facility that is located at a harness racetrack
and the county, including a home rule county, in which
the licensed facility is located is:
(A) A county of the first class: [4%] 2% of the
gross terminal revenue to the county hosting the
licensed facility from each such licensed facility
and $10,000,000. Notwithstanding any other provision
to the contrary, funds from licensed gaming entities
located within a county of the first class shall not
be distributed outside of a county of the first
class.
(B) A county of the second class: 2% of the
gross terminal revenue to the county hosting the
licensed facility from each such licensed facility.
(C) A county of the second class A: 1% of the
20160HB2428PN4105 - 2 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
gross terminal revenue to the county hosting the
licensed facility from each such licensed facility.
An additional 1% of the gross terminal revenue to the
county hosting the licensed facility from each such
licensed facility for the purpose of municipal grants
within the county in which the licensee is located.
(D) (I) A county of the third class: Except as
provided in subclause (II), 2% of the gross
terminal revenue from each such licensed facility
shall be deposited into a restricted receipts
account to be established in the Commonwealth
Financing Authority to be used exclusively for
grants for projects in the public interest to
municipalities within the county where the
licensed facility is located.
(I.1) Priority shall be given to multiyear
projects approved or awarded by the Department of
Community and Economic Development under
subclause (I) on or before the effective date of
this subclause.
(II) If a licensed facility is located in
one of two counties of the third class where a
city of the third class is located in both
counties of the third class, the county in which
the licensed facility is located shall receive
1.2% of the gross terminal revenue to be
distributed as follows: 20% to the host city,
30% to the host county and 50% to the host county
for the purpose of making municipal grants within
the county, with priority given to municipalities
20160HB2428PN4105 - 3 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
contiguous to the host city. The county of the
third class, which includes a city of the third
class that is located in two counties of the
third class and is not the host county for the
licensed facility, shall receive .8% of the gross
terminal revenue to be distributed as follows:
60% to a nonhost city of the third class located
solely in the nonhost county in which the host
city of the third class is also located or 60% to
the nonhost city of the third class located both
in the host and nonhost counties of the third
class, 35% to the nonhost county and 5% to the
nonhost county for the purpose of making
municipal grants within the county.
(E) A county of the fourth class: 2% of the
gross terminal revenue from each such licensed
facility shall be distributed as follows:
(I) The department shall make distributions
directly to each municipality within the county,
except the host municipality, by using a formula
equal to the sum of $25,000 plus $10 per resident
of the municipality using the most recent
population figures provided by the Department of
Community and Economic Development, provided,
however, that the amount so distributed to any
municipality shall not exceed 50% of its total
budget for fiscal year 2009, adjusted for
inflation in subsequent fiscal years by an amount
not to exceed an annual cost-of-living adjustment
calculated by applying any upward percentage
20160HB2428PN4105 - 4 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
change in the Consumer Price Index immediately
prior to the date the adjustment is due to take
effect. Distributions to a municipality in
accordance with this subclause shall be deposited
into a special fund which shall be established by
the municipality. The governing body of the
municipality shall have the right to draw upon
the special fund for any lawful purpose provided
that the municipality identifies the fund as the
source of the expenditure. Each municipality
shall annually submit a report to the Department
of Community and Economic Development detailing
the amount and purpose of each expenditure made
from the special fund during the prior fiscal
year.
(II) Any funds not distributed under
subclause (I) shall be deposited into a
restricted receipts account established in the
Department of Community and Economic Development
to be used exclusively for grants to the county,
to economic development authorities or
redevelopment authorities within the county for
grants for economic development projects,
infrastructure projects, job training, community
improvement projects, other projects in the
public interest, and necessary and reasonable
administrative costs. Notwithstanding the
provisions of the act of February 9, 1999 (P.L.1,
No.1), known as the Capital Facilities Debt
Enabling Act, grants made under this clause may
20160HB2428PN4105 - 5 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
be utilized as local matching funds for other
grants or loans from the Commonwealth.
(F) Counties of the fifth through eighth
classes:
(I) Except as set forth in subclause (II),
2% of the gross terminal revenue from each such
licensed facility shall be deposited into a
restricted account established in the Department
of Community and Economic Development to be used
exclusively for grants to the county.
(II) If the licensed facility is located in
a second class township in a county of the fifth
class, 2% of the gross terminal revenue from the
licensed facility shall be distributed as
follows:
(a) 1% shall be deposited into a
restricted receipts account to be established
in the Commonwealth Financing Authority to be
used exclusively for grants for projects in
the public interest to municipalities within
the county where the licensed facility is
located.
(b) 1% shall be distributed to the county
for projects in the public interest in the
county.
(G) Any county not specifically enumerated in
clauses (A) through (F), 2% of the gross terminal
revenue to the county hosting the licensed facility
from each such licensed facility.
(ii) If the licensed facility is a Category 1
20160HB2428PN4105 - 6 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
licensed facility and is located at a thoroughbred
racetrack and the county in which the licensed facility
is located is:
(A) A county of the first class: [4%] 2% of the
gross terminal revenue to the county hosting the
licensed facility from each such licensed facility
and $10,000,000. Notwithstanding any other provision
to the contrary, funds from licensed gaming entities
located within the county of the first class shall
not be distributed outside of a county of the first
class.
(B) A county of the second class: 2% of the
gross terminal revenue to the county hosting the
licensed facility from each such licensed facility.
(C) A county of the second class A: 1% of the
gross terminal revenue to the county hosting the
licensed facility from each such licensed facility.
An additional 1% of the gross terminal revenue to the
county hosting the licensed facility from each such
licensed facility for the purpose of municipal grants
within the county in which the licensee is located.
(D) A county of the third class: 1% of the
gross terminal revenue to the county hosting the
licensed facility from each such licensed facility.
An additional 1% of the gross terminal revenue to the
county hosting the licensed facility from each such
licensed facility for the purpose of municipal grants
within the county in which the licensee is located.
(E) A county of the fourth class: 2% of the
gross terminal revenue from each such licensed
20160HB2428PN4105 - 7 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
facility shall be deposited into a restricted account
established in the Department of Community and
Economic Development to be used exclusively for
grants to the county, to economic development
authorities or redevelopment authorities within the
county for grants for economic development projects,
community improvement projects, job training, other
projects in the public interest and reasonable
administrative costs. Notwithstanding the Capital
Facilities Debt Enabling Act, grants made under this
clause may be utilized as local matching funds for
other grants or loans from the Commonwealth.
(F) Counties of the fifth through eighth
classes: 2% of the gross terminal revenue from each
such licensed facility shall be deposited into a
restricted account established in the Department of
Community and Economic Development to be used
exclusively for grants to the county.
(G) Any county not specifically enumerated in
clauses (A) through (F), 2% of the gross terminal
revenue to the county hosting the licensed facility
from each such licensed facility.
(iii) If the facility is a Category 2 licensed
facility and if the county in which the licensed facility
is located is:
(A) A county of the first class: [4%] 2% of the
gross terminal revenue to the county hosting the
licensed facility from each such licensed facility
and $10,000,000. Notwithstanding any other provision
to the contrary, funds from licensed gaming entities
20160HB2428PN4105 - 8 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
located within a county of the first class shall not
be distributed outside of a county of the first
class. The first $5,000,000 of the total amount
distributed annually to the county of the first class
shall be distributed to the Philadelphia School
District.
(B) A county of the second class: 2% of the
gross terminal revenue to the county hosting the
licensed facility from each such licensed facility.
(C) A county of the second class A: 1% of the
gross terminal revenue to the county hosting the
licensed facility from each such licensed facility.
An additional 1% of the gross terminal revenue to the
county hosting the licensed facility from each such
licensed facility for the purpose of municipal grants
within the county in which the licensee is located.
(D) A county of the third class: 1% of the
gross terminal revenue to the county hosting the
licensed facility from each such licensed facility.
An additional 1% of the gross terminal revenue to the
county hosting the licensed facility from each such
licensed facility for the purpose of municipal grants
within the county in which the licensee is located.
(D.1) If a licensed facility is located in one
of two counties of the third class where a city of
the third class is located in both counties of the
third class, the county in which the licensed
facility is located shall receive 1.2% of the gross
terminal revenue to be distributed as follows: 20%
to the host city, 30% to the host county and 50% to
20160HB2428PN4105 - 9 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
the host county for the purpose of making municipal
grants within the county, with priority given to
municipalities contiguous to the host city. The
county of the third class, which includes a city of
the third class that is located in two counties of
the third class and is not the host county for the
licensed facility, shall receive .8% of the gross
terminal revenue to be distributed as follows: 60%
to a nonhost city of the third class located solely
in the nonhost county in which the host city of the
third class is also located or 60% to the nonhost
city of the third class located both in the host and
nonhost counties of the third class, 35% to the
nonhost county and 5% to the nonhost county for the
purpose of making municipal grants within the county.
(E) A county of the fourth class: 2% of the
gross terminal revenue from each such licensed
facility shall be deposited into a restricted account
established in the Department of Community and
Economic Development to be used exclusively for
grants to the county, to economic development
authorities or redevelopment authorities within the
county for grants for economic development projects,
community improvement projects, job training, other
projects in the public interest and reasonable
administrative costs. Notwithstanding the Capital
Facilities Debt Enabling Act, grants made under this
clause may be utilized as local matching funds for
other grants or loans from the Commonwealth.
(F) Counties of the fifth class: 2% of the
20160HB2428PN4105 - 10 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
gross terminal revenue from each such licensed
facility shall be deposited and distributed as
follows:
(I) One percent to be distributed as
follows:
(a) Beginning in 2010, the sum of
$2,400,000 annually for a period of 20 years
to the county for purposes of funding debt
service related to the construction of a
community college campus located within the
county.
(b) Any funds not distributed under
subclause (a) shall be deposited into a
restricted receipts account to be established
in the Commonwealth Financing Authority to be
used exclusively for grants within the county
for economic development projects, road
projects located within a 20-mile radius of
the licensed facility and located within the
county, community improvement projects and
other projects in the public interest within
the county. The amount under this subclause
includes reasonable administrative costs.
(II) One percent shall be deposited into a
restricted receipts account to be established in
the Commonwealth Financing Authority to be used
exclusively for grants within contiguous counties
for economic development projects, community
improvement projects and other projects in the
public interest within contiguous counties. The
20160HB2428PN4105 - 11 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
amount under this subclause includes reasonable
administrative costs. A contiguous county that
hosts a Category 1 licensed facility shall be
ineligible to receive grants under this
subclause.
(II.1) Priority shall be given to multiyear
projects approved or awarded by the Department of
Community and Economic Development under
subclause (I)(b) or (II) on or before the
effective date of this subclause.
(III) Fifty percent of any revenue required
to be transferred under paragraph (3)(v) shall be
deposited into the restricted receipts account
established under subclause (I)(b), and 50% shall
be deposited into the restricted receipts account
established under subclause (II). Notwithstanding
the Capital Facilities Debt Enabling Act, grants
made under this clause may be utilized as local
matching funds for other grants or loans from the
Commonwealth.
(G) Any county not specifically enumerated in
clauses (A) through (F), 2% of the gross terminal
revenue to the county hosting the licensed facility
from each such licensed facility.
(iv) (A) Except as provided in clause (B) or (C),
if the facility is a Category 3 licensed facility, 2%
of the gross terminal revenue from the licensed
facility shall be deposited into a restricted
receipts account established in the Department of
Community and Economic Development to be used
20160HB2428PN4105 - 12 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
exclusively for grants to the county, to economic
development authorities or redevelopment authorities
within the county for grants for economic development
projects, community improvement projects and other
projects in the public interest.
(B) If the facility is a Category 3 licensed
facility located in a county of the second class A,
2% of the gross terminal revenue from the licensed
facility shall be deposited into a restricted
receipts account to be established in the
Commonwealth Financing Authority to be used
exclusively for grants or guarantees for projects in
the host county that qualify under 64 Pa.C.S. §§ 1551
(relating to Business in Our Sites Program), 1556
(relating to Tax Increment Financing Guarantee
Program) and 1558 (relating to Water Supply and
Wastewater Infrastructure Program).
(C) If the facility is a Category 3 licensed
facility located in a county of the fifth class that
is contiguous to a county of the seventh class, 2% of
the gross terminal revenue from the licensed facility
shall be deposited into a restricted receipts account
to be established in the Commonwealth Financing
Authority to be used exclusively for grants within
the county for economic development projects,
infrastructure projects, community improvement
projects and other projects in the public interest
within the county and for infrastructure projects
within a 20-mile radius of the licensed facility in a
contiguous county of the seventh class.
20160HB2428PN4105 - 13 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
(v) Unless otherwise specified, for the purposes of
this paragraph money designated for municipal grants
within a county, other than a county of the first class,
in which a licensed facility is located shall be used to
fund grants to the municipality in which the licensed
facility is located, to the county in which the licensed
facility is located and to the municipalities which are
contiguous to the municipality in which the licensed
facility is located and which are located within the
county in which the licensed facility is located. Grants
shall be administered by the county through its economic
development or redevelopment authority in which the
licensed facility is located. Grants shall be used to
fund the costs of human services, infrastructure
improvements, facilities, emergency services, health and
public safety expenses associated with licensed facility
operations. If at the end of a fiscal year uncommitted
funds exist, the county shall pay to the economic
development or redevelopment authority of the county in
which the licensed facility is located the uncommitted
funds.
(vi) If the licensed facility is located in more
than one county, the amount available shall be
distributed on a pro rata basis determined by the
percentage of acreage located in each county to the total
acreage of all counties occupied by the licensed
facility.
(vii) The distributions provided in this paragraph
shall be based upon county classifications in effect on
the effective date of this section. Any reclassification
20160HB2428PN4105 - 14 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
of counties as a result of a Federal decennial census or
of a State statute shall not apply to this subparagraph.
(viii) If any provision of this paragraph is found
to be unenforceable for any reason, the distribution
provided for in the unenforceable provision shall be made
to the county in which the licensed facility is located
for the purposes of grants to municipalities in that
county, including municipal grants as specified in
subparagraph (v).
(ix) Nothing in this paragraph shall prevent any of
the above counties which directly receive a distribution
under this section from entering into intergovernmental
cooperative agreements with other jurisdictions for
sharing this money.
(3) From the [local share assessment] annual fee
established in subsection (b), make quarterly distributions
among the municipalities, including home rule municipalities,
hosting a licensed facility in accordance with the following
schedule:
(i) To a city of the second class hosting a licensed
facility, other than a Category 3 licensed facility, [2%
of the gross terminal revenue or] $10,000,000 annually[,
whichever is greater,] shall be paid by each licensed
gaming entity operating a facility located in that city.
[In the event that the revenues generated by the 2% do
not meet the $10,000,000 minimum specified in this
subparagraph, the department shall collect the remainder
of the minimum amount of $10,000,000 from each licensed
gaming entity operating a facility in the city and
deposit that amount in the city treasury.]
20160HB2428PN4105 - 15 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
(ii) To a city of the second class A hosting a
licensed facility, other than a Category 3 licensed
facility, [2% of the gross terminal revenue or]
$10,000,000 annually[, whichever is greater,] shall be
paid by each licensed entity operating a licensed
facility located in that city, subject, however, to the
budgetary limitation in this subparagraph. The amount
allocated to the designated municipalities shall not
exceed 50% of their total budget for fiscal year 2003-
2004, adjusted for inflation in subsequent years by an
amount not to exceed an annual cost-of-living adjustment
calculated by applying the percentage change in the
Consumer Price Index immediately prior to the date the
adjustment is due to take effect. Any remaining moneys
shall be collected by the department from each licensed
gaming entity and distributed in accordance with
paragraph (2) based upon the classification of county
where the licensed facility is located. [In the event
that the revenues generated by the 2% do not meet the
$10,000,000 minimum specified in this subparagraph, the
department shall collect the remainder of the minimum
amount of $10,000,000 from each licensed gaming entity
operating a facility in the city, pay any balance due to
the city and transfer any remainder in accordance with
paragraph (2).]
(iii) To a city of the third class hosting a
licensed facility, other than a Category 3 licensed
facility, [2% of the gross terminal revenue or]
$10,000,000 annually[, whichever is greater,] shall be
paid by each licensed gaming entity operating a licensed
20160HB2428PN4105 - 16 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
facility located in that city, subject, however, to the
budgetary limitation in this subparagraph. In the event
that the city has a written agreement with a licensed
gaming entity executed prior to the effective date of
this part, the amount paid under the agreement to the
city shall be applied and credited to the [difference
between 2% of the gross terminal revenue and the]
$10,000,000 owed under this subparagraph [if the 2% of
the gross terminal revenue is less than $10,000,000. If
2% of the gross terminal revenue is greater than the
$10,000,000 required to be paid under this subparagraph,
the credit shall not apply. The amount of gross terminal
revenue required to be paid pursuant to the agreement
shall be deemed to be gross terminal revenue for purposes
of this subparagraph]. The amount allocated to the
designated municipalities shall not exceed 50% of their
total budget for fiscal year 2003-2004, adjusted for
inflation in subsequent years by an amount not to exceed
an annual cost-of-living adjustment calculated by
applying the percentage change in the Consumer Price
Index immediately prior to the date the adjustment is due
to take effect. Any remaining moneys shall be collected
by the department from each licensed gaming entity and
distributed in accordance with paragraph (2) based upon
the classification of county where the licensed facility
is located. [In the event that the revenues generated by
the 2% do not meet the $10,000,000 minimum specified in
this subparagraph, the department shall collect the
remainder of the minimum amount of $10,000,000 from each
licensed gaming entity operating a facility, pay any
20160HB2428PN4105 - 17 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
balance due to the city of the third class and transfer
any remainder in accordance with paragraph (2).]
(iii.1) If a licensed facility is located in a city
of the third class and the city is located in more than
one county of the third class, [2% of the gross terminal
revenue or] $10,000,000 annually[, whichever is greater,]
shall be distributed as follows: 80% to the host city
and 20% to the city of the third class located solely in
a nonhost county in which the host city of the third
class is also located. If a licensed facility is located
in a city of the third class and that city is located
solely in a host county of the third class in which a
nonhost city of the third class is also located, [2% of
gross terminal revenue or] $10,000,000 annually[,
whichever is greater,] shall be distributed as follows:
80% to the host city and 20% to a city of the third class
located both in a nonhost county of the third class and
in a host county of the third class in which the host
city of the third class is located.
(iv) To a township of the first class hosting a
licensed facility, other than a Category 3 licensed
facility, [2% of the gross terminal revenue or]
$10,000,000 annually[, whichever is greater,] shall be
paid by each licensed gaming entity operating a licensed
facility located in the township subject, however, to the
budgetary limitation in this subparagraph. The amount
allocated to the designated municipalities shall not
exceed 50% of their total budget for fiscal year 2003-
2004, adjusted for inflation in subsequent years by an
amount not to exceed an annual cost-of-living adjustment
20160HB2428PN4105 - 18 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
calculated by applying the percentage change in the
Consumer Price Index immediately prior to the date the
adjustment is due to take effect. Any remaining money
shall be collected by the department from each licensed
gaming entity and distributed in accordance with
paragraph (2) based upon the classification of county
where the licensed facility is located. [In the event
that the revenues generated by the 2% do not meet the
$10,000,000 minimum specified in this subparagraph, the
department shall collect the remainder of the minimum
amount of $10,000,000 from each licensed gaming entity
operating a licensed facility in the township, pay any
balance due to the township and transfer any remainder in
accordance with paragraph (2).]
(v) To a township of the second class hosting a
licensed facility:
(A) [2% of the gross terminal revenue or]
$10,000,000 annually[, whichever is greater,] shall
be paid by each licensed gaming entity operating a
licensed facility, other than a Category 3 licensed
facility or a licensed facility owning land adjacent
to the licensed facility located in more than one
township of the second class, to the township of the
second class hosting the licensed facility, subject,
however, to the budgetary limitation in this
subparagraph. The amount allocated to the designated
municipalities shall not exceed 50% of their total
budget for fiscal year 2003-2004, adjusted for
inflation in subsequent years by an amount not to
exceed an annual cost-of-living adjustment calculated
20160HB2428PN4105 - 19 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
by applying the percentage change in the Consumer
Price Index immediately prior to the date the
adjustment is due to take effect. Any remaining money
shall be collected by the department from each
licensed gaming entity and distributed in accordance
with paragraph (2) based upon the classification of
county where the licensed facility is located. [If
revenues generated by the 2% do not meet the
$10,000,000 minimum specified in this subparagraph,
the department shall collect the remainder of the
minimum amount of $10,000,000 from each licensed
gaming entity operating a licensed facility in the
township, pay any balance due to the township and
transfer any remainder in accordance with paragraph
(2).]
(B) [2% of the gross terminal revenue or]
$10,000,000 annually[, whichever is greater,] less
the amount paid under clause (C), shall be paid by
each licensed gaming entity operating a licensed
facility and owning land adjacent to the licensed
facility located in more than one township of the
second class, other than a Category 3 licensed
facility, to the township of the second class hosting
the licensed facility, subject, however, to the
budgetary limitation in this subparagraph. The amount
allocated to the designated municipalities may not
exceed 50% of their total budget for the fiscal year
2003-2004, adjusted for inflation in subsequent years
by an amount not to exceed an annual cost-of-living
adjustment calculated by applying the percentage
20160HB2428PN4105 - 20 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
change in the Consumer Price Index immediately prior
to the date the adjustment is due to take effect. Any
remaining money shall be collected by the department
from each licensed gaming entity and distributed in
accordance with paragraph (2) based upon the
classification of the county where the licensed
facility is located. The county commissioners of a
county of the third class in which the licensed
facility is located shall appoint an advisory
committee for the purpose of advising the county as
to the need for municipal grants for health, safety,
transportation and other projects in the public
interest to be comprised of two individuals from the
host municipality, two from contiguous municipalities
within the county of the third class and one from the
host county. [In the event that the revenues
generated by the 2% do not meet the $10,000,000
minimum specified in this subparagraph, the
department shall collect the remainder of the minimum
amount of $10,000,000 from each licensed gaming
entity operating a licensed facility in the township,
pay any balance due to the township and transfer any
remainder in accordance with paragraph (2).]
(C) $160,000 annually shall be paid [by each
licensed gaming entity operating a licensed facility
and owning land adjacent to the licensed facility
located in more than one township of the second
class, other than a Category 3 licensed facility, to]
if the township of the second class [that] is located
in a county of the fifth class in which the adjacent
20160HB2428PN4105 - 21 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
land is located, including racetracks, grazing fields
or any other adjoining real property.
(vi) To a borough hosting a licensed facility, other
than a Category 3 licensed facility, [2% of the gross
terminal revenue or] $10,000,000 annually[, whichever is
greater,] shall be paid by each licensed gaming entity
operating a licensed facility located in that borough,
subject, however, to the budgetary limitation in this
subparagraph. The amount allocated to the designated
municipalities shall not exceed 50% of their total budget
for fiscal year 2003-2004, adjusted for inflation in
subsequent years by an amount not to exceed an annual
cost-of-living adjustment calculated by applying the
percentage change in the Consumer Price Index immediately
prior to the date the adjustment is due to take effect.
Any remaining money shall be collected by the department
from each licensed gaming entity and distributed in
accordance with paragraph (2) based upon the
classification of county where the licensed facility is
located. [In the event that the revenues generated by the
2% do not meet the $10,000,000 minimum specified in this
subparagraph, the department shall collect the remainder
of the minimum amount of $10,000,000 from each licensed
gaming entity operating a licensed facility in the
borough, pay any balance due to the borough and transfer
any remainder in accordance with paragraph (2).]
(vii) To an incorporated town hosting a licensed
facility, other than a Category 3 licensed facility, [2%
of the gross terminal revenue or] $10,000,000 annually[,
whichever is greater,] shall be paid by each licensed
20160HB2428PN4105 - 22 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
entity operating a licensed facility located in the town,
subject, however, to the budgetary limitation in this
subparagraph. The amount allocated to the designated
municipalities shall not exceed 50% of their total budget
for fiscal year 2003-2004, adjusted for inflation in
subsequent years by an amount not to exceed an annual
cost-of-living adjustment calculated by applying the
percentage change in the Consumer Price Index immediately
prior to the date the adjustment is due to take effect.
Any remaining money shall be collected by the department
from each licensed gaming entity and distributed in
accordance with paragraph (2) based upon the
classification of county where the licensed facility is
located. [In the event that the revenues generated by the
2% do not meet the $10,000,000 minimum specified in this
subparagraph, the department shall collect the remainder
of the minimum amount of $10,000,000 from each licensed
gaming entity operating a licensed facility in the
incorporated town, pay any balance due to the town and
transfer any remainder in accordance with paragraph (2).]
(viii) (A) Except as provided in clause (B) or (C),
to a municipality of any class hosting a Category 3
facility, 2% of the gross terminal revenue from the
Category 3 licensed facility located in the
municipality, subject, however, to the budgetary
limitation in this clause. The amount allocated to
the designated municipalities shall not exceed 50% of
their total budget for fiscal year 2009, adjusted for
inflation in subsequent years by an amount not to
exceed an annual cost-of-living adjustment calculated
20160HB2428PN4105 - 23 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
by applying the percentage change in the Consumer
Price Index immediately prior to the date the
adjustment is due to take effect. Any remaining money
shall be collected by the department from each
licensed gaming entity and distributed in accordance
with paragraph (2) based upon the classification of
county where the licensed facility is located.
(B) If the municipality hosting a Category 3
licensed facility is a borough located in a county of
the third class and the borough is contiguous to a
city of the third class, 1% of gross terminal revenue
shall be distributed to the host borough and 1% of
gross terminal revenue shall be distributed to the
city of the third class that is contiguous to the
host borough, subject, however, to the budgetary
limitation in this clause. The amount allocated to
each designated municipality shall not exceed 50% of
its total budget for fiscal year 2009, adjusted for
inflation in subsequent years by an amount not to
exceed an annual cost-of-living adjustment calculated
by applying the percentage increase, if any, in the
Consumer Price Index immediately prior to the date
the adjustment is due to take effect. Any remaining
money shall be collected by the department from each
licensed gaming entity and distributed in accordance
with paragraph (2) based upon the classification of
county where the licensed facility is located.
(C) If the municipality hosting a Category 3
licensed facility is a township of the second class
in a county of the fifth class which is contiguous to
20160HB2428PN4105 - 24 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
a county of the seventh class, 2% of the gross
terminal revenue from the Category 3 licensed
facility located in the municipality shall be
distributed to the municipality, subject, however, to
the budgetary limitation in this clause. The amount
allocated to the designated municipalities shall not
exceed the lesser of $1,000,000 or 50% of their total
budget for fiscal year 2009, adjusted for inflation
in subsequent years by an amount not to exceed an
annual cost-of-living adjustment calculated by
applying the percentage change in the Consumer Price
Index immediately prior to the date the adjustment is
due to take effect. Any remaining money shall be
collected by the department from each licensed gaming
entity and distributed in equal amounts to each
municipality contiguous to the host municipality.
However, the amount to be allocated to any contiguous
municipality shall not exceed the lesser of
$1,000,000 or 50% of the municipality's total budget
for fiscal year 2009, adjusted for inflation in
subsequent years by an amount not to exceed an annual
cost-of-living adjustment calculated by applying the
percentage change in the Consumer Price Index
immediately prior to the date the adjustment is due
to take effect. Any money remaining following
distribution to contiguous municipalities shall be
collected by the department and distributed in
accordance with paragraph (2) based upon the
classification of county where the licensed facility
is located.
20160HB2428PN4105 - 25 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
(ix) Any municipality not specifically enumerated
in subparagraphs (i) through (viii), 2% of the gross
terminal revenue to the municipality hosting the licensed
facility from each such licensed facility.
(x) If the licensed facility is located in more than
one municipality, the amount available shall be
distributed on a pro rata basis determined by the
percentage of acreage located in each municipality to the
total acreage of all municipalities occupied by the
licensed facility.
(xi) If the licensed facility is located at a resort
which is also an incorporated municipality, such
municipality shall not be eligible to receive any
distribution under this paragraph. The distribution it
would have otherwise been entitled to under this
paragraph shall instead be distributed in accordance with
paragraph (2) based upon the county where the licensed
facility is located.
(xii) The distributions provided in this paragraph
shall be based upon municipal classifications in effect
on the effective date of this section. For the purposes
of this paragraph, any reclassification of municipalities
as a result of a Federal decennial census or of a State
statute shall not apply to this paragraph.
(xiii) If any provision of this paragraph is found
to be unenforceable for any reason, the distribution
provided for in such unenforceable provision shall be
made to the municipality in which the licensed facility
is located.
(xiv) Nothing in this paragraph shall prevent any of
20160HB2428PN4105 - 26 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
the above municipalities from entering into
intergovernmental cooperative agreements with other
jurisdictions for sharing this money.
(xv) Notwithstanding any other law, agreement or
provision in this part to the contrary, all revenues
provided, directed or earmarked under this section to or
for the benefit of a city of the second class in which an
intergovernmental cooperation authority has been
established and is in existence pursuant to the act of
February 12, 2004 (P.L.73, No.11), known as the
Intergovernmental Cooperation Authority Act for Cities of
the Second Class, shall be directed to and under the
exclusive control of such intergovernmental cooperation
authority to be used:
(A) to reduce the debt of the second class city;
(B) to increase the level of funding of the
municipal pension funds of the second class city; or
(C) for any other purposes as determined to be
in the best interest of the second class city by such
intergovernmental cooperation authority. Such
revenues shall not be directed to or under the
control of such city of the second class or any
coordinator appointed pursuant to the act of July 10,
1987 (P.L.246, No.47), known as the Municipalities
Financial Recovery Act, for such city of the second
class.
* * *
Section 2. This act shall take effect in 60 days.
20160HB2428PN4105 - 27 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28