CORRECTIVE REPRINT
        PRIOR PRINTER'S NOS. 1539, 1602               PRINTER'S NO. 1606

THE GENERAL ASSEMBLY OF PENNSYLVANIA


HOUSE BILL

No. 1302 Session of 1983


        INTRODUCED BY BARBER, WACHOB, HOEFFEL, BELOFF, IRVIS, MILLER,
           HARPER, FATTAH, WIGGINS, ITKIN, ZWIKL, F. E. TAYLOR, MRKONIC,
           SALOOM, CIMINI, KOSINSKI, MICHLOVIC, CIVERA, ALDERETTE,
           ANGSTADT, MICOZZIE, MANDERINO, JOHNSON, GRUPPO, LASHINGER,
           PRATT, DeLUCA, J. L. WRIGHT, MORRIS, HALUSKA, FREEMAN,
           PRESTON, MAIALE, CALTAGIRONE, CLARK, COLE, BELFANTI,
           KUKOVICH, GALLAGHER, JAROLIN, RYBAK, DOMBROWSKI, COY,
           SHOWERS, PISTELLA, COHEN, STEIGHNER, RUDY, SEVENTY, FISCHER,
           KASUNIC, E. Z. TAYLOR, TRUMAN, McCALL, OLIVER, RICHARDSON,
           STUBAN AND DAWIDA, JUNE 29, 1983

        AS REPORTED FROM COMMITTEE ON HEALTH AND WELFARE, HOUSE OF
           REPRESENTATIVES, AS AMENDED, JULY 12, 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; PROHIBITING FUNDING FROM THE GENERAL FUND;    <--
     9     AND PROHIBITING THE TRANSFER OF CERTAIN FUNDS.

    10     The General Assembly of the Commonwealth of Pennsylvania
    11  hereby enacts as follows:
    12     Section 1.  Sections 2, 6(a)(11) and 12 of the act of August
    13  26, 1971 (P.L.351, No.91), known as the State Lottery Law,
    14  amended October 17, 1980 (P.L.1088, No.184), are amended to
    15  read:
    16     Section 2.  Statement of Purpose.--This act is enacted to


     1  establish a lottery to be operated by the State, the net
     2  proceeds of which are to be used after June 30, 1972 for the
     3  purposes of providing property tax relief for the elderly for
     4  taxes paid in 1971 and thereafter to persons sixty-five years of
     5  age or older [and], for providing certain free fixed route local
     6  transit services to persons sixty-five years of age or older and
     7  reduced fare on group ride transit service to persons sixty-five
     8  years of age or older and for providing prescription drug
     9  payments for certain persons. It is further intended to provide
    10  a means through which to curb illegal gambling operations in
    11  Pennsylvania.
    12     Section 6.  Powers and Duties of the Secretary of Revenue.--
    13  (a)  In addition to the powers and duties provided by law and
    14  "The Administrative Code of 1929," the Secretary of Revenue
    15  shall have the power and it shall be his duty to operate and
    16  administer the lottery, and to promulgate rules and regulations
    17  governing the establishment and operation thereof, including but
    18  not limited to:
    19     * * *
    20     (11)  The apportionment of the total revenues accruing from
    21  the sale of lottery tickets or shares and from all other sources
    22  among (i) the payment of prizes to the holders of winning
    23  tickets or shares; (ii) the payment of costs incurred in the
    24  operation and administration of the lottery, including the
    25  expenses of the division and the costs resulting from any
    26  contract or contracts entered into for promotional, advertising
    27  or operational services or for the purchase or lease of lottery
    28  equipment and materials; (iii) for the repayment of the moneys
    29  appropriated to the State Lottery Fund pursuant to section 16 of
    30  this act; and (iv) for property tax relief [and], free or
    19830H1302B1606                  - 2 -

     1  reduced fare transit service for the elderly and prescription
     2  drug payments for certain persons as provided in section 12 of
     3  this act: Provided, however, That no less than thirty per cent
     4  of the total revenues accruing from the sale of lottery tickets
     5  or shares shall be dedicated to subclause (iv) above.
     6     * * *
     7     Section 12.  Disposition of Funds from Sale of Tickets or
     8  Shares.--(a)  All moneys received from the operation of the
     9  State lottery shall be deposited in a State Lottery Fund which
    10  is hereby created. Such moneys shall be used to the extent
    11  necessary for the payment of lottery prizes but the amount so
    12  used shall not be less than forty per cent of the amount of
    13  which tickets or shares have been sold. All payments of lottery
    14  prizes and for expenses of operation of the lottery shall be
    15  made as provided by law. All moneys remaining after payment of
    16  prizes and operating expenses shall remain in the State Lottery
    17  Fund and shall be allocated for the purpose of providing
    18  property tax relief for the elderly for taxes paid in 1971 and
    19  thereafter pursuant to the provisions of the act of March 11,
    20  1971 (P.L.104, No.3), known as the "Senior Citizens [Property
    21  Tax or Rent] Rebate and [Older Persons Inflation Needs]
    22  Assistance Act," for prescription drug payments pursuant to the
    23  act of                   (No.   ), known as the "Pharmaceutical
    24  Assistance Plan to the Aged Act," and for the purpose of
    25  providing free or reduced fare transit service for the elderly
    26  pursuant to the act of January 22, 1968 (P.L.42, No.8), known as
    27  the "Pennsylvania Urban Mass Transportation [Assistance] Law [of
    28  1967]," and the act of February 11, 1976 (P.L.14, No.10), known
    29  as the "Pennsylvania Rural and Intercity Common Carrier Surface
    30  Transportation Assistance Act." In the event sufficient funds
    19830H1302B1606                  - 3 -

     1  are not available from the lottery receipts to meet the
     2  requirements of the act of March 11, 1971 (P.L.104, No.3), known
     3  as the "Senior Citizens [Property Tax or Rent] Rebate and [Older
     4  Persons Inflation Needs] Assistance Act," or for providing free
     5  or reduced fare transit service for the elderly under the act of
     6  January 22, 1968 (P.L.42, No.8), known as the "Pennsylvania
     7  Urban Mass Transportation [Assistance] Law [of 1967]," and the
     8  act of February 11, 1976 (P.L.14, No.10), known as the
     9  "Pennsylvania Rural and Intercity Common Carrier Surface
    10  Transportation Assistance Act." [additional] NO funds to fulfill  <--
    11  these obligations, shall be appropriated from the General Fund
    12  for this purpose.
    13     (b)  The moneys in said State Lottery Fund shall be
    14  appropriated only:
    15     (1)  For the payment of prizes to the holders of winning
    16  lottery tickets or shares;
    17     (2)  For the expenses of the division in its operation of the
    18  lottery;
    19     (3)  For property tax relief [and], free or reduced fare
    20  transit service for the elderly and prescription drug payments
    21  for certain persons as provided under section 12 of this act;
    22  and
    23     (4)  For transfer to the General Fund through June 30, 1972,
    24  and for the repayment to the General Fund of the amount
    25  appropriated to the fund pursuant to section 16 of this act.
    26     (C)  NO MONEYS SHALL BE TRANSFERRED OR BORROWED FROM THE       <--
    27  STATE LOTTERY FUND FOR ANY REASON EXCEPT AS SPECIFICALLY SET
    28  FORTH IN SUBSECTION (B) AND TO BE USED AS THE STATE SHARE OF THE
    29  MEDICAL ASSISTANCE PROGRAM FOR LONG TERM CARE FOR SENIOR
    30  CITIZENS OVER THE AGE OF 65.
    19830H1302B1606                  - 4 -

     1     Section 2.  This act shall take effect July 1, 1983.




















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