PRINTER'S NO. 393

THE GENERAL ASSEMBLY OF PENNSYLVANIA


HOUSE BILL

No. 349 Session of 1983


        INTRODUCED BY PIEVSKY, MANDERINO, ZWIKL, GALLAGHER, IRVIS,
           CAPPABIANCA, MORRIS, CORDISCO, BLAUM, DeWEESE AND KUKOVICH,
           MARCH 14, 1983

        REFERRED TO COMMITTEE ON HEALTH AND WELFARE, MARCH 14, 1983

                                     AN ACT

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

     9     The General Assembly of the Commonwealth of Pennsylvania
    10  hereby enacts as follows:
    11     Section 1.  Sections 2, 6(a)(11) and 12 of the act of August
    12  26, 1971 (P.L.351, No.91), known as the State Lottery Law,
    13  amended October 17, 1980 (P.L.1088, No.184), are amended to
    14  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 to persons sixty-five years of
    20  age or older [and], for providing certain free fixed route local


     1  transit services to persons sixty-five years of age or older and
     2  reduced fare on group ride transit service to persons sixty-five
     3  years of age or older and for providing prescription drug
     4  payments for certain persons. It is further intended to provide
     5  a means through which to curb illegal gambling operations in
     6  Pennsylvania.
     7     Section 6.  Powers and Duties of the Secretary of Revenue.--
     8  (a)  In addition to the powers and duties provided by law and
     9  "The Administrative Code of 1929," the Secretary of Revenue
    10  shall have the power and it shall be his duty to operate and
    11  administer the lottery, and to promulgate rules and regulations
    12  governing the establishment and operation thereof, including but
    13  not limited to:
    14     * * *
    15     (11)  The apportionment of the total revenues accruing from
    16  the sale of lottery tickets or shares and from all other sources
    17  among (i) the payment of prizes to the holders of winning
    18  tickets or shares; (ii) the payment of costs incurred in the
    19  operation and administration of the lottery, including the
    20  expenses of the division and the costs resulting from any
    21  contract or contracts entered into for promotional, advertising
    22  or operational services or for the purchase or lease of lottery
    23  equipment and materials; (iii) for the repayment of the moneys
    24  appropriated to the State Lottery Fund pursuant to section 16 of
    25  this act; and (iv) for property tax relief [and], free or
    26  reduced fare transit service for the elderly and prescription
    27  drug payments for certain persons as provided in section 12 of
    28  this act: Provided, however, That no less than thirty per cent
    29  of the total revenues accruing from the sale of lottery tickets
    30  or shares shall be dedicated to subclause (iv) above.
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     1     * * *
     2     Section 12.  Disposition of Funds from Sale of Tickets or
     3  Shares.--(a)  All moneys received from the operation of the
     4  State lottery shall be deposited in a State Lottery Fund which
     5  is hereby created. Such moneys shall be used to the extent
     6  necessary for the payment of lottery prizes but the amount so
     7  used shall not be less than forty per cent of the amount of
     8  which tickets or shares have been sold. All payments of lottery
     9  prizes and for expenses of operation of the lottery shall be
    10  made as provided by law. All moneys remaining after payment of
    11  prizes and operating expenses shall remain in the State Lottery
    12  Fund and shall be allocated for the purpose of providing
    13  property tax relief for the elderly for taxes paid in 1971 and
    14  thereafter and for prescription drug payments for certain
    15  persons pursuant to the provisions of the act of March 11, 1971
    16  (P.L.104, No.3), known as the "Senior Citizens [Property Tax or
    17  Rent] Rebate and [Older Persons Inflation Needs] Assistance
    18  Act," and for the purpose of providing free or reduced fare
    19  transit service for the elderly pursuant to the act of January
    20  22, 1968 (P.L.42, No.8), known as the "Pennsylvania Urban Mass
    21  Transportation [Assistance] Law [of 1967]," and the act of
    22  February 11, 1976 (P.L.14, No.10), known as the "Pennsylvania
    23  Rural and Intercity Common Carrier Surface Transportation
    24  Assistance Act." In the event sufficient funds are not available
    25  from the lottery receipts to meet the requirements of the act of
    26  March 11, 1971 (P.L.104, No.3), known as the "Senior Citizens
    27  [Property Tax or Rent] Rebate and [Older Persons Inflation
    28  Needs] Assistance Act," or for providing free or reduced fare
    29  transit service for the elderly under the act of January 22,
    30  1968 (P.L.42, No.8), known as the "Pennsylvania Urban Mass
    19830H0349B0393                  - 3 -

     1  Transportation [Assistance] Law [of 1967]," and the act of
     2  February 11, 1976 (P.L.14, No.10), known as the "Pennsylvania
     3  Rural and Intercity Common Carrier Surface Transportation
     4  Assistance Act," additional funds to fulfill these obligations,
     5  shall be appropriated from the General Fund for this purpose.
     6     (b)  The moneys in said State Lottery Fund shall be
     7  appropriated only:
     8     (1)  For the payment of prizes to the holders of winning
     9  lottery tickets or shares;
    10     (2)  For the expenses of the division in its operation of the
    11  lottery;
    12     (3)  For property tax relief [and], free or reduced fare
    13  transit service for the elderly and prescription drug payments
    14  for certain persons as provided under section 12 of this act;
    15  and
    16     (4)  For transfer to the General Fund through June 30, 1972,
    17  and for the repayment to the General Fund of the amount
    18  appropriated to the fund pursuant to section 16 of this act.
    19     Section 2.  This act shall take effect July 1, 1983.








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