PRINTER'S NO. 1539

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

        REFERRED TO COMMITTEE ON HEALTH AND WELFARE, JUNE 29, 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

     1  purposes of providing property tax relief for the elderly for
     2  taxes paid in 1971 and thereafter to persons sixty-five years of
     3  age or older [and], for providing certain free fixed route local
     4  transit services to persons sixty-five years of age or older and
     5  reduced fare on group ride transit service to persons sixty-five
     6  years of age or older and for providing prescription drug
     7  payments for certain persons. It is further intended to provide
     8  a means through which to curb illegal gambling operations in
     9  Pennsylvania.
    10     Section 6.  Powers and Duties of the Secretary of Revenue.--
    11  (a)  In addition to the powers and duties provided by law and
    12  "The Administrative Code of 1929," the Secretary of Revenue
    13  shall have the power and it shall be his duty to operate and
    14  administer the lottery, and to promulgate rules and regulations
    15  governing the establishment and operation thereof, including but
    16  not limited to:
    17     * * *
    18     (11)  The apportionment of the total revenues accruing from
    19  the sale of lottery tickets or shares and from all other sources
    20  among (i) the payment of prizes to the holders of winning
    21  tickets or shares; (ii) the payment of costs incurred in the
    22  operation and administration of the lottery, including the
    23  expenses of the division and the costs resulting from any
    24  contract or contracts entered into for promotional, advertising
    25  or operational services or for the purchase or lease of lottery
    26  equipment and materials; (iii) for the repayment of the moneys
    27  appropriated to the State Lottery Fund pursuant to section 16 of
    28  this act; and (iv) for property tax relief [and], free or
    29  reduced fare transit service for the elderly and prescription
    30  drug payments for certain persons as provided in section 12 of
    19830H1302B1539                  - 2 -

     1  this act: Provided, however, That no less than thirty per cent
     2  of the total revenues accruing from the sale of lottery tickets
     3  or shares shall be dedicated to subclause (iv) above.
     4     * * *
     5     Section 12.  Disposition of Funds from Sale of Tickets or
     6  Shares.--(a)  All moneys received from the operation of the
     7  State lottery shall be deposited in a State Lottery Fund which
     8  is hereby created. Such moneys shall be used to the extent
     9  necessary for the payment of lottery prizes but the amount so
    10  used shall not be less than forty per cent of the amount of
    11  which tickets or shares have been sold. All payments of lottery
    12  prizes and for expenses of operation of the lottery shall be
    13  made as provided by law. All moneys remaining after payment of
    14  prizes and operating expenses shall remain in the State Lottery
    15  Fund and shall be allocated for the purpose of providing
    16  property tax relief for the elderly for taxes paid in 1971 and
    17  thereafter pursuant to the provisions of the act of March 11,
    18  1971 (P.L.104, No.3), known as the "Senior Citizens [Property
    19  Tax or Rent] Rebate and [Older Persons Inflation Needs]
    20  Assistance Act," for prescription drug payments pursuant to the
    21  act of                   (No.   ), known as the "Pharmaceutical
    22  Assistance Plan to the Aged Act," and for the purpose of
    23  providing free or reduced fare transit service for the elderly
    24  pursuant to the act of January 22, 1968 (P.L.42, No.8), known as
    25  the "Pennsylvania Urban Mass Transportation [Assistance] Law [of
    26  1967]," and the act of February 11, 1976 (P.L.14, No.10), known
    27  as the "Pennsylvania Rural and Intercity Common Carrier Surface
    28  Transportation Assistance Act." In the event sufficient funds
    29  are not available from the lottery receipts to meet the
    30  requirements of the act of March 11, 1971 (P.L.104, No.3), known
    19830H1302B1539                  - 3 -

     1  as the "Senior Citizens [Property Tax or Rent] Rebate and [Older
     2  Persons Inflation Needs] Assistance Act," or for providing free
     3  or reduced fare transit service for the elderly under the act of
     4  January 22, 1968 (P.L.42, No.8), known as the "Pennsylvania
     5  Urban Mass Transportation [Assistance] Law [of 1967]," and the
     6  act of February 11, 1976 (P.L.14, No.10), known as the
     7  "Pennsylvania Rural and Intercity Common Carrier Surface
     8  Transportation Assistance Act," additional funds to fulfill
     9  these obligations, shall be appropriated from the General Fund
    10  for this purpose.
    11     (b)  The moneys in said State Lottery Fund shall be
    12  appropriated only:
    13     (1)  For the payment of prizes to the holders of winning
    14  lottery tickets or shares;
    15     (2)  For the expenses of the division in its operation of the
    16  lottery;
    17     (3)  For property tax relief [and], free or reduced fare
    18  transit service for the elderly and prescription drug payments
    19  for certain persons as provided under section 12 of this act;
    20  and
    21     (4)  For transfer to the General Fund through June 30, 1972,
    22  and for the repayment to the General Fund of the amount
    23  appropriated to the fund pursuant to section 16 of this act.
    24     Section 2.  This act shall take effect July 1, 1983.




    F20L72DGS/19830H1302B1539        - 4 -