PRINTER'S NO. 3561
No. 2641 Session of 1982
INTRODUCED BY DONATUCCI, SEPTEMBER 13, 1982
REFERRED TO COMMITTEE ON STATE GOVERNMENT, SEPTEMBER 13, 1982
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 (P.L.1088 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 payments for certain persons. It is further
5 intended to provide a means through which to curb illegal
6 gambling 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 payments 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.
19820H2641B3561 - 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
16 Tax or Rent] Rebate and [Older Persons Inflation Needs]
17 Assistance Act," [and], for the purpose of providing free or
18 reduced fare transit service for the elderly pursuant to the act
19 of January 22, 1968 (P.L.42, No.8), known as the "Pennsylvania
20 Urban Mass Transportation [Assistance] Law [of 1967]," and the
21 act of February 11, 1976 (P.L.14, No.10), known as the
22 "Pennsylvania Rural and Intercity Common Carrier Surface
23 Transportation Assistance Act," and for providing prescription
24 drug expense payments pursuant to the act of , known as the
25 "Senior Citizens Prescription Drug Assistance Act." In the event
26 sufficient funds are not available from the lottery receipts to
27 meet the requirements of the act of March 11, 1971 (P.L.104,
28 No.3), known as the "Senior Citizens [Property Tax or Rent]
29 Rebate and [Older Persons Inflation Needs] Assistance Act," or
30 for providing free or reduced fare transit service for the
19820H2641B3561 - 3 -
1 elderly under the [act of January 22, 1968 (P.L.42, No.8), known
2 as the] "Pennsylvania Urban Mass Transportation [Assistance] Law
3 [of 1967]," and the act of February 11, 1976 (P.L.14, No.10),
4 known as the "Pennsylvania Rural and Intercity Common Carrier
5 Surface Transportation Assistance Act," [additional funds to
6 fulfill these obligations, shall be appropriated from the
7 General Fund for this purpose.] and for providing prescription
8 drug expense payments pursuant to the "Senior Citizens
9 Prescription Drug Assistance Act," then the amounts allowed for
10 whatever purpose authorized shall be reduced in the same
11 proportion that the amount of funds available bears to the total
12 amount of 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 payments 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 January 1, 1983.
I8L72RZ/19820H2641B3561 - 4 -