PRIOR PRINTER'S NO. 1539                      PRINTER'S NO. 1602

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
    17  establish a lottery to be operated by the State, the net

     1  proceeds of which are to be used after June 30, 1972 for the
     2  purposes of providing property tax relief for the elderly for
     3  taxes paid in 1971 and thereafter to persons sixty-five years of
     4  age or older [and], for providing certain free fixed route local
     5  transit services to persons sixty-five years of age or older and
     6  reduced fare on group ride transit service to persons sixty-five
     7  years of age or older and for providing prescription drug
     8  payments for certain persons. It is further intended to provide
     9  a means through which to curb illegal gambling operations in
    10  Pennsylvania.
    11     Section 6.  Powers and Duties of the Secretary of Revenue.--
    12  (a)  In addition to the powers and duties provided by law and
    13  "The Administrative Code of 1929," the Secretary of Revenue
    14  shall have the power and it shall be his duty to operate and
    15  administer the lottery, and to promulgate rules and regulations
    16  governing the establishment and operation thereof, including but
    17  not limited to:
    18     * * *
    19     (11)  The apportionment of the total revenues accruing from
    20  the sale of lottery tickets or shares and from all other sources
    21  among (i) the payment of prizes to the holders of winning
    22  tickets or shares; (ii) the payment of costs incurred in the
    23  operation and administration of the lottery, including the
    24  expenses of the division and the costs resulting from any
    25  contract or contracts entered into for promotional, advertising
    26  or operational services or for the purchase or lease of lottery
    27  equipment and materials; (iii) for the repayment of the moneys
    28  appropriated to the State Lottery Fund pursuant to section 16 of
    29  this act; and (iv) for property tax relief [and], free or
    30  reduced fare transit service for the elderly and prescription
    19830H1302B1602                  - 2 -

     1  drug payments for certain persons as provided in section 12 of
     2  this act: Provided, however, That no less than thirty per cent
     3  of the total revenues accruing from the sale of lottery tickets
     4  or shares shall be dedicated to subclause (iv) above.
     5     * * *
     6     Section 12.  Disposition of Funds from Sale of Tickets or
     7  Shares.--(a)  All moneys received from the operation of the
     8  State lottery shall be deposited in a State Lottery Fund which
     9  is hereby created. Such moneys shall be used to the extent
    10  necessary for the payment of lottery prizes but the amount so
    11  used shall not be less than forty per cent of the amount of
    12  which tickets or shares have been sold. All payments of lottery
    13  prizes and for expenses of operation of the lottery shall be
    14  made as provided by law. All moneys remaining after payment of
    15  prizes and operating expenses shall remain in the State Lottery
    16  Fund and shall be allocated for the purpose of providing
    17  property tax relief for the elderly for taxes paid in 1971 and
    18  thereafter pursuant to the provisions of the act of March 11,
    19  1971 (P.L.104, No.3), known as the "Senior Citizens [Property
    20  Tax or Rent] Rebate and [Older Persons Inflation Needs]
    21  Assistance Act," for prescription drug payments pursuant to the
    22  act of                   (No.   ), known as the "Pharmaceutical
    23  Assistance Plan to the Aged Act," and for the purpose of
    24  providing free or reduced fare transit service for the elderly
    25  pursuant to the act of January 22, 1968 (P.L.42, No.8), known as
    26  the "Pennsylvania Urban Mass Transportation [Assistance] Law [of
    27  1967]," and the act of February 11, 1976 (P.L.14, No.10), known
    28  as the "Pennsylvania Rural and Intercity Common Carrier Surface
    29  Transportation Assistance Act." In the event sufficient funds
    30  are not available from the lottery receipts to meet the
    19830H1302B1602                  - 3 -

     1  requirements of the act of March 11, 1971 (P.L.104, No.3), known
     2  as the "Senior Citizens [Property Tax or Rent] Rebate and [Older
     3  Persons Inflation Needs] Assistance Act," or for providing free
     4  or reduced fare transit service for the elderly under the act of
     5  January 22, 1968 (P.L.42, No.8), known as the "Pennsylvania
     6  Urban Mass Transportation [Assistance] Law [of 1967]," and the
     7  act of February 11, 1976 (P.L.14, No.10), known as the
     8  "Pennsylvania Rural and Intercity Common Carrier Surface
     9  Transportation Assistance Act." [additional] NO funds to fulfill  <--
    10  these obligations, shall be appropriated from the General Fund
    11  for this purpose.
    12     (b)  The moneys in said State Lottery Fund shall be
    13  appropriated only:
    14     (1)  For the payment of prizes to the holders of winning
    15  lottery tickets or shares;
    16     (2)  For the expenses of the division in its operation of the
    17  lottery;
    18     (3)  For property tax relief [and], free or reduced fare
    19  transit service for the elderly and prescription drug payments
    20  for certain persons as provided under section 12 of this act;
    21  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
    25     (C)  NO MONEYS SHALL BE TRANSFERRED OR BORROWED FROM THE       <--
    26  STATE LOTTERY FUND FOR ANY REASON EXCEPT AS SPECIFICALLY SET
    27  FORTH IN SUBSECTION (B) AND TO BE USED AS THE STATE SHARE OF THE
    28  MEDICAL ASSISTANCE PROGRAM FOR LONG TERM CARE FOR SENIOR
    29  CITIZENS OVER THE AGE OF 65.
    30     Section 2.  This act shall take effect July 1, 1983.
    F20L72DGS/19830H1302B1602        - 4 -