PRINTER'S NO. 2178

THE GENERAL ASSEMBLY OF PENNSYLVANIA


HOUSE BILL

No. 1708 Session of 1985


        INTRODUCED BY ITKIN, PETRONE, TRELLO, BOOK, WIGGINS,
           D. R. WRIGHT, J. L. WRIGHT, STABACK, MAYERNIK, PISTELLA,
           STEWART, NAHILL, CHADWICK, CALTAGIRONE, JOHNSON, DALEY,
           KUKOVICH, COY, BLAUM, FISCHER, GEORGE, VROON, DeLUCA,
           McVERRY, E. Z. TAYLOR, MRKONIC, BELFANTI, FOX, DISTLER,
           PERZEL, HALUSKA, FLICK, PRESSMANN, WOGAN, HAGARTY, RYBAK,
           DEAL, STEVENS, MICOZZIE, KOSINSKI, DAWIDA, OLASZ, GAMBLE,
           FATTAH, ARTY, IRVIS, ANGSTADT, PRESTON, CIMINI, TELEK,
           LEVDANSKY, MORRIS, J. TAYLOR, TRUMAN AND COLAFELLA,
           OCTOBER 2, 1985

        REFERRED TO COMMITTEE ON FINANCE, OCTOBER 2, 1985

                                     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 payments from the State Lottery Fund to
     8     support an optical and aural assistance program; and making
     9     editorial changes.

    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. The net proceeds shall also be used for
     8  the support of an optical and aural assistance program pursuant
     9  to the act of                (P.L.   , No.  ), known as the
    10  "Optical-Aural Assistance to the Aged Act." It is further
    11  intended to provide a means through which to curb illegal
    12  gambling operations in Pennsylvania.
    13     Section 6.  Powers and Duties of the Secretary of Revenue.--
    14  (a)  In addition to the powers and duties provided by law and
    15  "The Administrative Code of 1929," the Secretary of Revenue
    16  shall have the power and it shall be his duty to operate and
    17  administer the lottery, and to promulgate rules and regulations
    18  governing the establishment and operation thereof, including but
    19  not limited to:
    20     * * *
    21     (11)  The apportionment of the total revenues accruing from
    22  the sale of lottery tickets or shares and from all other sources
    23  among (i) the payment of prizes to the holders of winning
    24  tickets or shares; (ii) the payment of costs incurred in the
    25  operation and administration of the lottery, including the
    26  expenses of the division and the costs resulting from any
    27  contract or contracts entered into for promotional, advertising
    28  or operational services or for the purchase or lease of lottery
    29  equipment and materials; (iii) for the repayment of the moneys
    30  appropriated to the State Lottery Fund pursuant to section 16 of
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     1  this act; and (iv) for property tax relief [and], free or
     2  reduced fare transit service and optical and aural assistance
     3  for the elderly as provided in section 12 of this act: Provided,
     4  however, That no less than thirty per cent of the total revenues
     5  accruing from the sale of lottery tickets or shares shall be
     6  dedicated to subclause (iv) above.
     7     * * *
     8     Section 12.  Disposition of Funds from Sale of Tickets or
     9  Shares.--(a)  All moneys received from the operation of the
    10  State lottery shall be deposited in a State Lottery Fund which
    11  is hereby created. Such moneys shall be used to the extent
    12  necessary for the payment of lottery prizes but the amount so
    13  used shall not be less than forty per cent of the amount of
    14  which tickets or shares have been sold. All payments of lottery
    15  prizes and for expenses of operation of the lottery shall be
    16  made as provided by law. All moneys remaining after payment of
    17  prizes and operating expenses shall remain in the State Lottery
    18  Fund and shall be allocated for the purpose of providing
    19  property tax relief for the elderly for taxes paid in 1971 and
    20  thereafter pursuant to the provisions of the act of March 11,
    21  1971 (P.L.104, No.3), known as the ["Senior Citizens Property
    22  Tax or Rent Rebate and Older Persons Inflation Needs Act,"]
    23  "Senior Citizens Rebate and Assistance Act," and for the purpose
    24  of providing free or reduced fare transit service for the
    25  elderly pursuant to the act of January 22, 1968 (P.L.42, No.8),
    26  known as the ["Pennsylvania Urban Mass Transportation Assistance
    27  Law of 1967,"]"Pennsylvania Urban Mass Transportation Law," and
    28  the act of February 11, 1976 (P.L.14, No.10), known as the
    29  "Pennsylvania Rural and Intercity Common Carrier Surface
    30  Transportation Assistance [Act."] Act," and optical and aural
    19850H1708B2178                  - 3 -

     1  assistance to the elderly pursuant to the act of               
     2  (P.L.   , No.  ), known as the "Optical-Aural Assistance to the
     3  Aged Act." In the event sufficient funds are not available from
     4  the lottery receipts to meet the requirements of the act of
     5  March 11, 1971 (P.L.104, No.3), known as the ["Senior Citizens
     6  Property Tax or Rent Rebate and Older Persons Inflation Needs
     7  Act,"] "Senior Citizens Rebate and Assistance Act," or for
     8  providing free or reduced fare transit service for the elderly
     9  under the act of January 22, 1968 (P.L.42, No.8), known as the
    10  ["Pennsylvania Urban Mass Transportation Assistance Law of
    11  1967,"] "Pennsylvania Urban Mass Transportation Law," and the
    12  act of February 11, 1976 (P.L.14, No.10), known as the
    13  "Pennsylvania Rural and Intercity Common Carrier Surface
    14  Transportation Assistance Act," or optical and aural assistance
    15  to the elderly pursuant to the act of                 (P.L.   ,
    16  No.  ), known as the "Optical-Aural Assistance to the Aged Act,"
    17  additional funds to fulfill these obligations, shall be
    18  appropriated from the General Fund for this purpose.
    19     (b)  The moneys in said State Lottery Fund shall be
    20  appropriated only:
    21     (1)  For the payment of prizes to the holders of winning
    22  lottery tickets or shares;
    23     (2)  For the expenses of the division in its operation of the
    24  lottery;
    25     (3)  For property tax relief [and], free or reduced fare
    26  transit service and optical and aural assistance for the elderly
    27  as provided under section 12 of this act; and
    28     (4)  For transfer to the General Fund through June 30, 1972,
    29  and for the repayment to the General Fund of the amount
    30  appropriated to the fund pursuant to section 16 of this act.
    19850H1708B2178                  - 4 -

     1     Section 2.  This act shall take effect January 1, 1986.




















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