PRINTER'S NO. 1535
No. 1370 Session of 1981
INTRODUCED BY KOWALYSHYN, RYBAK, ZWIKL, JOHNSON, WAMBACH, BROWN AND HALUSKA, MAY 4, 1981
REFERRED TO COMMITTEE ON STATE GOVERNMENT, MAY 4, 1981
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 for the use of moneys in the State Lottery 8 Fund. 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 October 17, 14 1980 (No.184), 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 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 2 [and], for reduced fare on group ride transit service to persons 3 sixty-five years of age or older and for providing prescription 4 drug expense rebates for certain persons. It is further intended 5 to provide a means through which to curb illegal gambling 6 operations in 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 and prescription drug expense 27 rebates for the elderly as provided in section 12 of this act: 28 Provided, however, That no less than thirty per cent of the 29 total revenues accruing from the sale of lottery tickets or 30 shares shall be dedicated to subclause (iv) above. 19810H1370B1535 - 2 -
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 pursuant to the provisions of the act of March 11, 15 1971 (P.L.104, No.3), known as the "Senior Citizens Property Tax 16 or Rent Rebate and Older Persons Inflation Needs Act," [and], 17 for the purpose of providing free or reduced fare transit 18 service for the elderly pursuant to the act of January 22, 1968 19 (P.L.42, No.8), known as the "Pennsylvania Urban Mass 20 Transportation [Assistance] Law [of 1967]," and the act of 21 February 11, 1976 (P.L.14, No.10), known as the "Pennsylvania 22 Rural and Intercity Common Carrier Surface Transportation 23 Assistance Act," and for providing prescription drug expense 24 rebates pursuant to the act of , known as the "Prescription 25 Drug Expense Rebate Act." In the event sufficient funds are not 26 available from the lottery receipts to meet the requirements of 27 the act of March 11, 1971 (P.L.104, No.3), known as the "Senior 28 Citizens Property Tax or Rent Rebate and Older Persons Inflation 29 Needs Act," or for providing free or reduced fare transit 30 service for the elderly under the [act of January 22, 1968 19810H1370B1535 - 3 -
1 (P.L.42, No.8), known as the] "Pennsylvania Urban Mass 2 Transportation [Assistance] Law [of 1967]," and the act of 3 February 11, 1976 (P.L.14, No.10), known as the "Pennsylvania 4 Rural and Intercity Common Carrier Surface Transportation 5 Assistance Act," [additional funds to fulfill these obligations, 6 shall be appropriated from the General Fund for this purpose.] 7 and for providing prescription drug expense rebates pursuant to 8 the "Prescription Drug Expense Rebate Act," then the amounts 9 allowed as reimbursements, rebates and assistance for whatever 10 purpose authorized shall be reduced in the same proportion that 11 the amount of funds available bears to the total amount of 12 claims for the year. 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 expense 21 rebates as provided under section 12 of this act; and 22 (4) For transfer to the General Fund through June 30, 1972, 23 and for the repayment to the General Fund of the amount 24 appropriated to the fund pursuant to section 16 of this act. 25 Section 2. This act shall take effect July 1, 1981. L10L72CVV/19810H1370B1535 - 4 -