PRINTER'S NO. 73

THE GENERAL ASSEMBLY OF PENNSYLVANIA


HOUSE BILL

No. 71 Session of 1975


        INTRODUCED BY ZORD, FISHER AND CESSAR, JANUARY 27, 1975

        REFERRED TO COMMITTEE ON TRANSPORTATION, JANUARY 27, 1975

                                     AN ACT

     1  Amending the act of August 26, 1971 (P.L.351, No.91), entitled
     2     "An act providing for a State Lottery and administration
     3     thereof; authorizing the creation of a State Lottery
     4     Commission; prescribing its powers and duties; disposition of
     5     funds; violations and penalties therefor; exemption of prizes
     6     from State and local taxation and making an appropriation,"
     7     allocating money in the State Lottery Fund to the payment of
     8     local transit for permanently disabled persons.

     9     The General Assembly of the Commonwealth of Pennsylvania
    10  hereby enacts as follows:
    11     Section 1.  Section 2, clause (11) of subsection (a) of
    12  section 6 and section 12, act of August 26, 1971 (P.L.351,
    13  No.91), known as the "State Lottery Law," amended December 27,
    14  1972 (P.L.1629, No.338), are amended to read:
    15     Section 2.  Statement of Purpose.--This act is enacted to
    16  establish a lottery to be operated by the State, the net
    17  proceeds of which are to be used after June 30, 1972 for the
    18  purposes of providing property tax relief for the elderly for
    19  taxes paid in 1971 and thereafter and for providing certain free
    20  local transit to persons sixty-five years of age or older and
    21  permanently disabled persons. It is further intended to provide


     1  a means through which to curb illegal gambling operations in
     2  Pennsylvania.
     3     Section 6.  Powers and Duties of the Secretary of Revenue.--
     4  (a) In addition to the powers and duties provided by law and
     5  "The Administrative Code of 1929," the Secretary of Revenue
     6  shall have the power and it shall be his duty to operate and
     7  administer the lottery, and to promulgate rules and regulations
     8  governing the establishment and operation thereof, including but
     9  not limited to:
    10     * * *
    11     (11)  The apportionment of the total revenues accruing from
    12  the sale of lottery tickets or shares and from all other sources
    13  among (i) the payment of prizes to the holders of winning
    14  tickets or shares; (ii) the payment of costs incurred in the
    15  operation and administration of the lottery, including the
    16  expenses of the division and the costs resulting from any
    17  contract or contracts entered into for promotional, advertising
    18  or operational services or for the purchase or lease of lottery
    19  equipment and materials; (iii) for the repayment of the moneys
    20  appropriated to the State Lottery Fund pursuant to section 16 of
    21  this act; and (iv) for property tax relief and free local
    22  transit for the elderly and permanently disabled persons as
    23  provided in section 12 of this act: Provided, however, That no
    24  less than thirty per cent of the total revenues accruing from
    25  the sale of lottery tickets or shares shall be dedicated to
    26  subclause (iv) above.
    27     * * *
    28     Section 12.  Disposition of Funds from Sale of Tickets or
    29  Shares.--(a) All moneys received from the operation of the State
    30  lottery shall be deposited in a State Lottery Fund which is
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     1  hereby created. Such moneys shall be used to the extent
     2  necessary for the payment of lottery prizes but the amount so
     3  used shall not be less than forty per cent of the amount of
     4  which tickets or shares have been sold. All payments of lottery
     5  prizes and for expenses of operation of the lottery shall be
     6  made as provided by law. All moneys remaining after payment of
     7  prizes and operating expenses shall be transferred to the
     8  General Fund through June 30, 1972, after which date they shall
     9  remain in the State Lottery Fund and shall be allocated for the
    10  purpose of providing property tax relief for the elderly for
    11  taxes paid in 1971 and thereafter pursuant to the provisions of
    12  the act of March 11, 1971 (P.L.104, No.3), known as the "Senior
    13  Citizens Property Tax Assistance Act," and for the purpose of
    14  providing local transit for the elderly and permanently disabled
    15  persons pursuant to the act of January 22, 1968 (P.L.42, No.8),
    16  known as the "Pennsylvania Urban Mass Transportation Assistance
    17  Law of 1967." In the event sufficient funds are not available
    18  from the lottery receipts to meet the requirements of the act of
    19  March 11, 1971 (P.L.104, No.3), known as the "Senior Citizens
    20  Property Tax Assistance Act," or for providing local transit for
    21  the elderly and permanently disabled persons under the act of
    22  January 22, 1968 (P.L.42, No.8), known as the "Pennsylvania
    23  Urban Mass Transportation Assistance Law of 1967," additional
    24  funds to fulfill these obligations, shall be appropriated from
    25  the General Fund for this purpose.
    26     (b)  The moneys in said State Lottery Fund shall be
    27  appropriated only:
    28     (1)  For the payment of prizes to the holders of winning
    29  lottery tickets or shares;
    30     (2)  For the expenses of the division in its operation of the
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     1  lottery;
     2     (3)  For property tax relief and free local transit for the
     3  elderly and permanently disabled persons as provided under
     4  section 12 of this act; and
     5     (4)  For transfer to the General Fund through June 30, 1972,
     6  and for the repayment to the General Fund of the amount
     7  appropriated to the fund pursuant to section 16 of this act.
     8     Section 2.  This act shall take effect July 1, 1976.















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