CORRECTIVE REPRINT

THE GENERAL ASSEMBLY OF PENNSYLVANIA

HOUSE BILL

INTRODUCED BY SANTONI, McCALL, EACHUS, DeWEESE, STURLA, J. TAYLOR, BRENNAN, CALTAGIRONE, BROWN, D. COSTA, FABRIZIO, GOODMAN, GALLOWAY, HARKINS, HARHAI, KOTIK, PAYTON, SEIP, SAINATO, D. EVANS, SIPTROTH, PALLONE, THOMAS AND MELIO, APRIL 21, 2009

AS REPORTED FROM COMMITTEE ON GAMING OVERSIGHT, HOUSE OF REPRESENTATIVES, AS AMENDED, JULY 17, 2009   

AN ACT

Providing for tuition relief and for a video lottery program;

establishing penalties; and making appropriations.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

CHAPTER 1

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GENERAL PROVISIONS

Section 101.  Short title.

This act shall be known and may be cited as the Tuition

Relief Act.

Section 102.  Definitions.

The following words and phrases when used in this act shall

have the meanings given to them in this section unless the

context clearly indicates otherwise:

"Account."  The Enabling Students to Attend College Account.

"Agency."  The Pennsylvania Higher Education Assistance

Agency.

"Applicant."  A person who applies for a license under

section 502(a).

"Central computer system."  A central site computer system

controlled by the Department of Revenue that at all times is

connected to video lottery terminals and that, at a minimum, is

capable of monitoring, communicating, auditing, retrieving

information, generating games for and activating and disabling

each video lottery terminal.

"Cheating or thieving device."  A device to facilitate the

alignment of any winning combination or to remove from any video

lottery terminal money or other contents. The term includes a

tool, drill, wire, coin or token attached to a string or wire

and any electronic or magnetic device.

"Coin-operated amusement machine."  A machine that requires

the insertion of a coin, currency or tokens to play or activate

a game, the outcome of which is primarily determined by the

skill of the player. The term shall not include a video lottery

terminal.

"Community college."  A public college operated under Article

XIX-A of the act of March 10, 1949 (P.L.30, No.14), known as the

Public School Code of 1949.

"Department."  The Department of Revenue of the Commonwealth.

"Eligible student."  A student who meets all of the

following:

(1)  Is enrolled at the undergraduate level in a degree

or certificate program at a public institution of higher

education.

(2)  Does not hold a bachelor's degree or its equivalent.

(3)  Does one of the following:

(i)  Participates in the scholarship program.

(ii)  Meets the family income requirements under

section 302(1).

"Enforcement Bureau."  The Bureau of Liquor Control

Enforcement of the Pennsylvania State Police.

"Expected family contribution."  A contribution as determined

under the policies and procedures established by the agency for

the scholarship program.

"Family income."  Income as established by the agency for the

scholarship program.

"First-time student."  An eligible student who has enrolled

in undergraduate level courses for the first time or is

readmitted to undergraduate level courses after a period of not

less than three years. The term shall include students enrolled

for the first time in the academic year who attended college in

the prior summer term or who entered with advanced standing due

to college credits earned before graduation from high school.

"Full-time student."  An eligible student that meets the

definition of full-time student as defined in the act of January

25, 1966 (1965 P.L.1546, No.541), referred to as the Higher

Education Scholarship Law.

"Fund."  The College Tuition Relief Fund.

"Gaming machine."  A device or machine that has the outcome

of play primarily determined by chance. The term shall include a

device that is not in working order or requires some mechanical

act of manipulation or repair to accomplish its adaptation,

conversion or workability. The term shall include an antique

slot machine under 18 Pa.C.S. § 5513(c) (relating to gambling

devices, gambling, etc.) when used for profit. The term shall

not include any of the following:

(1)  A coin operated amusement machine.

(2)  A video lottery terminal that has all of its seals

or identification plates.

(3)  Slot machines as defined under 4 Pa.C.S. § 1103

(relating to definitions).

(4)  A game of chance under the act of December 19, 1988

(P.L.1262, No.156), known as the Local Option Small Games of

Chance Act.

(5)  Lottery terminals used under the act of August 26,

1971 (P.L.351, No.91), known as the State Lottery Law.

"Grocery store."  A retail establishment, that is less than

2,500 square feet or more than 8,500 square feet in size,

commonly known as a grocery store, supermarket or delicatessen,

where food, food products and supplies are sold for human

consumption on or off the premises with average monthly sales,

exclusive of wine sales, of not less than $5,000. The term shall

also include a licensed establishment with an interior

connection to a grocery store and the separate and segregated

portion of any other retail establishment which is dedicated

solely to the sale of food, food products and supplies for human

consumption on or off the premises with average monthly sales

with respect to the separate or segregated portion, exclusive of

wine sales, of not less than $5,000.

"Higher Education Scholarship Law."  The act of January 25,

1966 (1965 P.L.1546, No.541), referred to as the Higher

Education Scholarship Law.

"Licensed establishment."  A restaurant, eating place, hotel

or club as defined under section 102 of the act of April 12,

1951 (P.L.90, No.21), known as the Liquor Code, that operates

under a valid liquor or malt or brewed beverage license under

Article IV of the Liquor Code. The term shall not include a

grocery store or a licensed facility as defined under 4 Pa.C.S.

§ 1103 (relating to definitions).

"Licensed establishment owner."  A person who holds a license

to sell liquor or malt or brewed beverages at a licensed

establishment.

"Liquor Code."  The act of April 12, 1951 (P.L.90, No.21),

known as the Liquor Code.

"Mode of instruction."  One of the following methods of

delivery of a public institution of higher education's

curriculum:

(1)  In person.

(2)  Via distance learning.

(3)  A combination of paragraphs (1) and (2).

"Office of Administrative Law Judge."  An adjudicative office

within the Pennsylvania Liquor Control Board charged with the

responsibility of presiding at all citation hearings and other

enforcement hearings under the act of April 12, 1951 (P.L.90,

No.21), known as the Liquor Code.

"Part-time student."  An eligible student who is enrolled on

a less than full-time basis.

"Pennsylvania Lottery."  The Division of the State Lottery of

the Department of Revenue.

"Person."  Any natural person, corporation, foundation,

organization, business trust, estate, limited liability company,

licensed corporation, trust, partnership, association or any

other form of legal business entity.

"Profits."  The total value of all cash, tickets and credits

used for the play of a video lottery terminal less the amount

paid out in prizes. The value of tickets and credits shall be as

determined by the secretary.

"Public institution of higher education."  A community

college or an institution which is part of the State System of

Higher Education under Article XX-A of the act of March 10, 1949

(P.L.30, No.14), known as the Public School Code of 1949.

"Scholarship program."  The scholarship program established

under the act of January 25, 1966 (1965 P.L.1546, No.541),

referred to as the Higher Education Scholarship Law.

"Secretary."  The Secretary of Revenue of the Commonwealth.

"State Lottery Law."  The act of of August 26, 1971

(P.L.351, No.91), known as the State Lottery Law.

"Total cost of attendance."  The cost of attending a public

institution of higher education as determined under the policies

and procedures established by the United States Department of

Education.

"Unfunded total cost of attendance."  The total cost of

attendance minus the sum of all grants, scholarships, waivers

and other categories of gift-aid received, excluding veterans

educational benefits.

"Video lottery license."  A license issued by the secretary

authorizing a licensed establishment owner to possess and

operate one or more video lottery terminals at the licensed

establishment specified in the application for licensure.

"Video lottery retailer."  A licensed establishment owner

that holds a video lottery license.

"Video lottery terminal."  An interactive electronic terminal

or device that is compatible with the central computer system

and is approved by the secretary for the play of video lottery

games. The term shall not include an authorized slot machine as

defined under 4 Pa.C.S. § 1103 (relating to definitions).

CHAPTER 3

TUITION RELIEF

Section 301.  Expansion of State scholarship program.

(a)  Supplemental grants.--Except as provided under

subsections (b), (c), (d) and (e) the agency shall award a

supplemental grant to an eligible student participating in the

scholarship program so that the eligible student's unfunded

total cost of attendance is equal to the eligible student's

expected family contribution.

(b)  Minimum unfunded cost.--The unfunded cost of attendance

may not be less than $1,000 annually on a full-time equivalent

basis.

(c)  Contribution up to $2,000.--In the case of an eligible

student whose expected family contribution is between one dollar

and $2,000, the unfunded total cost of attendance shall be

$1,000 annually on a full-time equivalent basis in the first and

second years of attendance, $1,500 on a full-time equivalent

basis in the third year of attendance and $2,000 on a full-time

equivalent basis in the fourth year of attendance.

(d)  Supplemental grant minimum.--Except as provided under

subsections (b), (c) and (e), the supplemental grant shall not

be less than 75% of the tuition rate of the public institution

of higher education applicable to the eligible student's status

as a full-time or part-time student.

(e)  Total cost.--The total amount of all grants,

scholarships, waivers and other categories of gift aid,

excluding veterans educational benefits, received by an eligible

student may not exceed the eligible student's total cost of

attendance.

Section 302.  Tuition relief for additional Commonwealth

students.

The agency shall award a tuition grant to an eligible student

who is not eligible for a supplemental grant under section 301

under the following conditions:

(1)  The student's family income does not exceed

$100,000.

(2)  The tuition grant shall be equal to 50% of the

tuition rate of the public institution of higher education

applicable to the eligible student's status as a full-time or

part-time student, except that the total amount of all

grants, scholarships, waivers and other categories of gift-

aid, excluding veterans educational benefits, may not exceed

the total cost of attendance and that the unfunded total cost

of attendance may not be less than $1,000 annually on a full-

time equivalent basis.

(3)  A student whose scholarship under the scholarship

program is terminated, denied or not renewed for reasons

other than financial need, part-time enrollment status,

remedial content that does not exceed guidelines for the

Federal Pell grant program or mode of instruction may not

qualify for a grant under this section.

Section 303.  Implementation.

(a)  Awards.--Awards granted in the first year that grants

are awarded under this chapter shall be limited to first-time

students at public institutions of higher education. One

additional class of first-time students shall be added in each

subsequent year until the time as all classes of eligible

students at the public institution of higher education are

included. Nothing in this subsection shall limit the ability of

an eligible student who receives a grant under this chapter to

remain eligible for a grant upon returning from a gap in

enrollment, if all other eligibility requirements are met.

(b)  Part-time student.--In the case of a part-time student,

the amount of the grant under this chapter to which the eligible

student is entitled shall be reduced in proportion to the degree

to which that student is not attending on a full-time basis,

except that the total funds awarded to any eligible student

shall not exceed the amount to which the student would have been

entitled had the educational program been completed in the

standard duration for a full-time student as established by the

agency.

(c)  Reduction.--If sufficient funds are not transferred to

the agency under section 304 for the award of grants under this

chapter, all grants under this chapter shall be proportionately

reduced so as not to exceed the total amount of available funds.

(d)  Scholarship program hold harmless.--It is the intent of

the General Assembly that the transfers to the agency for the

purpose of awarding grants to eligible students under this

chapter shall supplement, not supplant, grants made by the

agency under the scholarship program. In no fiscal year after

the effective date of this section shall the number and value of

grants awarded by the agency under the scholarship program be

less than the number and value of the grants awarded to students

in the 2008-2009 fiscal year.

(e)  Room and board.--The total cost of attendance at a

community college shall not include room and board for the

purpose of this chapter.

(f)  Domicile, renewal and transfer.--All provisions

regarding domicile, citizenship, renewal of scholarship and

transfers established by the agency for the scholarship program

shall apply to tuition grants awarded under this chapter.

Section 304.  Transfer.

The Office of the Budget shall annually transfer proceeds

from the fund to the agency as follows:

(1)  As of July 15, 2009, and April 15 of each year

thereafter, the Secretary of the Budget shall certify the

total amount of revenue that will be available for transfer.

In calculating the total amount of available revenue, the

Secretary of the Budget shall take into account all of the

following:

(i)  (A)  For the certification to be completed no

later than July 15, 2009, revenue which:

(I)  has been advanced by the Commonwealth or

appropriated by the General Assembly to or

deposited into the fund prior to the date of

certification; and

(II)  is reasonably projected to be deposited

into the fund during the six months following the

date on which the certification is made.

(B)  The certification under this subparagraph

shall be applicable to the fiscal year in which

certification is made. The Secretary of the Budget

shall only certify an amount that is sustainable in

subsequent years.

(ii)  (A)  For certifications for fiscal years after

2009-2010, revenue which:

(I)  has been advanced by the Commonwealth or

appropriated by the General Assembly to or

deposited into the fund since the conclusion of

the period which the prior certification covered;

and

(II)  is reasonably projected to be deposited

into the fund during the six months following the

date on which the certification is made.

(B)  The certifications under this subparagraph

shall be applicable to the fiscal year following the

fiscal year in which certification is made. The

Secretary of the Budget shall only certify an amount

that is sustainable in subsequent years.

(2)  If the actual revenue deposited into the fund during

the period which a certification covers exceeds projections,

any revenue in excess of the projections shall remain in the

fund and may be included in the certification for the

subsequent fiscal year.

(3)  For the 2009-2010 fiscal year, the Office of the

Budget shall transfer the amount certified under paragraph

(1) to the agency by a payment no later than the first day of

September and a second payment no later than the first day of

February. For the 2010-2011 fiscal year and each fiscal year

thereafter, the Office of the Budget shall transfer the

amount certified under paragraph (1) to the agency by a

payment no later than the first day of August and a second

payment no later than the first day of January.

(4)  Any portion of the transfer that the agency does not

expend in order to comply with this chapter shall be returned

to the fund and may be included in the certification for the

subsequent fiscal year.

CHAPTER 5

FUNDING FOR COLLEGE TUITION RELIEF

Section 501.  Video lottery.

(a)  Provision.--The secretary, by the authority granted

under the State Lottery Law, shall provide for video lottery

through use of video lottery terminals by video lottery

retailers. Except as set forth under this act, video lottery

games shall be operated and administered in conformity with the

provisions of the State Lottery Law.

(b)  Placement.--A video lottery terminal may be placed for

operation only on the premises of a licensed establishment at

which a video lottery retailer is authorized to place and

operate a video lottery terminal under this chapter. A video

lottery terminal may not be placed in any other location.

(c)  Amount.--No more than five video lottery terminals may

be placed on the premises of a licensed establishment.

(d)  Applicability.--The act of December 19, 1988 (P.L.1262,

No.156), known as the Local Option Small Games of Chance Act,

shall not apply to this act.

Section 502.  Licensing.

(a)  Eligibility.--A licensed establishment owner may apply

to the secretary for a video lottery license under this section

on a form prescribed by the secretary if all of the following

conditions are met:

(1)  The license to sell liquor or malt or brewed

beverages at the licensed establishment is valid and in

effect and is not in safekeeping or under suspension at the

time the application is filed.

(2)  The licensed establishment owner is in good standing

with the Pennsylvania Liquor Control Board.

(3)  The licensed establishment owner agrees to have

sufficient funds available at the licensed establishment to

pay out anticipated prizes.

(b)  Requirements.--The following shall apply to video

lottery licenses issued under this section:

(1)  A video lottery license may be issued at the

discretion of the secretary. Nothing in this chapter is

intended or shall be construed to create an entitlement to a

license by any person.

(2)  Before issuing a video lottery license, the

secretary shall consider at least the following factors:

(i)  The financial fitness, responsibility and

security of the applicant and the applicant's business.

(ii)  The volume of expected number of plays on a

video lottery terminal at the licensed establishment.

(3)    (i)  Notwithstanding subparagraph (ii), if the

secretary finds that the experience, character and

general fitness of the applicant and any officers,

directors, stockholders and partners of the applicant and

any other person that shares or will share in the profits

or participates or will participate in the management of

the affairs of the applicant are such that the

participation of the applicant as a video lottery

retailer will be consistent with the public interest,

convenience and necessity, the secretary may grant a

video lottery license to the applicant.

(ii)  The secretary may refuse to issue a license

under this section, or may suspend or revoke a license,

if:

(A)  The applicant or licensee or an officer,

director, stockholder or partner of the applicant or

any other person that shares or will share in the

profits or participates or will participate in the

management of the affairs of the applicant:

(I)  Has been convicted of a crime involving

moral turpitude.

(II)  Has been convicted of pool selling or

bookmaking under 18 Pa.C.S. § 5514 (relating to

pool selling and bookmaking) or other form of

illegal gambling.

(III)  Has been convicted of any fraud or

misrepresentation in any context.

(IV)  Has violated any rule, regulation or

order of the department.

(B)  The applicant is not the owner or lessee of

the licensed establishment where it intends to

conduct video lottery.

(C)  A person other than the applicant shares or

will share in the profits of the applicant other than

as a bona fide owner of a financial interest in the

applicant or participates or will participate in the

management of the affairs of the applicant other than

as a bona fide manager of the operations of the

licensed establishment.

(4)  The secretary may issue a temporary video lottery

license upon the terms and conditions as the secretary deems

necessary, desirable or proper to effectuate the provisions

of this chapter.

(5)  The secretary shall refuse to grant or renew a video

lottery license and shall suspend and may revoke the video

lottery license of any video lottery retailer that is not

compliant with the tax laws of this Commonwealth.

(c)  Lottery tickets.--A video lottery retailer may be

required to sell Pennsylvania Lottery tickets as determined by

the secretary.

(d)  Application fees.--An applicant for a video lottery

license shall pay a nonrefundable initial license application

fee of $500 and a nonrefundable annual license renewal fee of

$100. The fees collected under this subsection shall be

deposited in the account.

(e)  Third-party disclosure.--Each video lottery license

applicant or licensee shall accept any risk of adverse public

notice, embarrassment, criticism, damages or financial loss,

which may result from disclosure or publication by a third party

of material or information received by the department in

connection with an application or license. The video lottery

license applicant or licensee shall expressly waive any and all

claims against the secretary, the department, the Commonwealth

and its employees from damages as a result of disclosure or

publication by a third party of any material or information

supplied or developed under this section.

Section 503.  Central computer system.

The secretary shall establish a protocol for the use of a

central computer system. All licensed video lottery terminals

must be linked at all times to the central computer system.

Section 504.  Video lottery terminal.

In addition to the requirements established by the secretary

under the State Lottery Law for lottery terminals, a video

lottery terminal:

(1)  Shall be linked to and have the ability to interact

with the central computer system.

(2)  Shall not directly dispense coins, cash, tokens or

any other article of exchange or value that represents

winnings, except for tickets. The ticket shall indicate the

total amount of credits and the cash value of winnings or

prizes, and the player shall turn in the ticket to the

appropriate person at the licensed establishment to receive

the cash award.

(3)  Shall not award a ticket or prize with a value in an

amount equal to or greater than $600 for any individual play

or other amount as determined by the secretary and published

in the Pennsylvania Bulletin from time to time.

(4)  Shall not pay out less than a theoretical payout

percentage. The secretary may adopt regulations that set and

define the theoretical payout percentage of video lottery

play, which shall not be less than 80%.

Section 505.  Fees.

In addition to the application fee under section 502(d) a

video lottery retailer shall pay at times determined by the

secretary but no more frequently than annually, a fee of $500

per video lottery terminal or other amount as determined by the

secretary, and published in the Pennsylvania Bulletin. The fees

shall be deposited in the account.

Section 506.  College Tuition Relief Fund.

(a)  Establishment.--

(1)  There is established a separate fund in the State

Treasury to be known as the College Tuition Relief Fund. 

(2)  A restricted receipts account to be known as the

Enabling Students to Attend College Account is established

within the fund.

(b)  Deposits.--Notwithstanding section 311(a) of the State

Lottery Law, money shall be deposited as follows:

(1)  All fees, fines and penalties imposed under this

chapter shall be deposited into the account as collected.

(2)  All profits from the play of a video lottery

terminal and proceeds seized under section 507(e) shall be

deposited into the fund.

(c)  Distributions.--

(1)  Money in the account shall be distributed to the

department, the Pennsylvania Liquor Control Board and the

Pennsylvania State Police for the cost of carrying out their

respective obligations under this chapter and are

appropriated on a continuing basis for that purpose. The

costs shall include the start-up and ongoing cost of the

central computer system, video lottery terminals and the

administration and enforcement of this chapter. Payments to

the department, the Pennsylvania Liquor Control Board and the

Pennsylvania State Police shall be based on annual budgets

submitted through the Office of the Budget.

(2)  Money in the fund shall be distributed pursuant to

this paragraph. The money is appropriated on a continuing

basis for that purpose. The following shall apply:

(i)  Money in the fund representing 25% of the

profits from a video lottery terminal shall be

distributed to the video lottery retailer holding the

video lottery license permitting the operation of the

terminal.

(ii)  Money in the fund representing 50% of the

profits from all video lottery terminals shall remain in

the fund to be used for the program under Chapter 3.

(iii)  The balance of money in the fund shall be paid

first to the department, to the Pennsylvania Liquor

Control Board and to the Pennsylvania State Police for

any amount needed to pay the costs under paragraph (1)

not funded by money in the account and then to the

General Fund.

(d)  State Lottery Fund hold harmless.--If, on June 15, 2010,

and June 15 of each year thereafter, the secretary determines

that a decrease in the revenue deposited in that fiscal year in

the State Lottery Fund is due to the play of video lottery

terminals in this Commonwealth, the secretary shall certify the

amount of the decrease due to the play. The secretary’s

determination shall be based upon an audit or other report of an

independent expert with respect to such decrease. A sum equal to

the amount of the decrease shall be deducted from the amount to

be distributed to the General Fund under subsection (c)(2)(iii)

in the next fiscal year and deposited in the State Lottery Fund.

The cost of the audit or independent report may be included in

the costs of the department to be funded from money in the

account under subsection (c)(1).

Section 507.  Enforcement.

(a)  Unlawful acts.--Except as provided under subsections (b)

and (c), it shall be unlawful for any person to do any of the

following:

(1)  To operate or attempt to operate a video lottery

terminal or to receive a prize or attempt to receive a prize

from a video lottery terminal if the person is under 21 years

of age.

(2)  To permit an individual under 21 years of age to

play a video lottery terminal or provide a prize to an

individual under 21 years of age as a result of playing a

video lottery terminal.

(3)  To permit a visibly intoxicated patron to play a

video lottery terminal.

(4)  To possess a gaming machine.

(5)  To install or operate more video lottery terminals

in a licensed establishment than permitted by the department.

(6)  To possess a video lottery terminal without holding

a current video lottery license.

(7)  To possess or use or permit any person to possess or

use a cheating or thieving device.

(8)  To provide false information or documents in or with

respect to an application for a video lottery license or in

or with respect to any other information or document required

in the administration of this chapter.

(9)  To possess a video lottery terminal with altered or

missing identification.

(10)  To alter or remove or to permit the alteration or

removal of the identification plate on a video lottery

terminal.

(11)  To tamper or permit tampering with the connection

of the video lottery terminal to the central computer system.

(12)  To award or permit the award of a prize in excess

of the amount established under section 504 for an individual

play.

(13)  To fail to report or pay or to fail to truthfully

account for and pay any license fee or other amount imposed

under this chapter.

(14)  To attempt in any manner to evade or defeat the

payment of any license fee or other amount imposed under this

chapter.

(15)  To permit a video lottery terminal to be

transported to or repaired or opened on the premises of a

licensed establishment by a person other than a person

authorized by the secretary.

(16)  To use currency other than lawful coin or legal

tender of the United States or a coin not of the same

denomination as the coin required to be used in the video

lottery terminal.

(17)  To possess any device, equipment or material which

the person knows has been manufactured, distributed, sold,

tampered with or serviced in violation of this chapter with

the intent to use the device, equipment or material as though

it had been manufactured, distributed, sold, tampered with or

serviced under this chapter.

(18)  To sell, offer for sale, represent or pass off as

lawful any device, equipment or material which the person

knows has been manufactured, distributed, sold, tampered with

or serviced in violation of this chapter.

(19)  To violate or knowingly permit the violation of any

provision of this chapter.

(b)  Compliance checks.--Notwithstanding any provision of

law, the enforcement bureau may conduct compliance checks in

licensed establishments. An individual who is under 21 years of

age may play a video lottery terminal and receive a prize from

playing the video lottery terminal in a licensed establishment

if all of the following apply:

(1)  The individual is at least 18 years of age.

(2)  The individual is an officer, employee or intern of

the enforcement bureau.

(3)  The individual has completed training specified by

the enforcement bureau.

(4)  The individual is acting within the scope of

prescribed duties.

(5)  The individual is acting under the direct control or

supervision of an enforcement bureau officer who is at least

21 years of age.

(c)  Cheating device.--An authorized employee of the

enforcement bureau or an authorized employee of the department

may possess and use a cheating or thieving device, counterfeit

or altered billet, ticket, token or similar objects accepted by

a video lottery terminal or counterfeit or altered video lottery

terminal-issued tickets or credits in performance of the duties

of employment.

(d)  Criminal penalties.--In addition to any other penalties

provided by law, the following shall apply:

(1)  The provisions of 18 Pa.C.S. § 4902 (relating to

perjury), § 4903 (relating to false swearing) or § 4904

(relating to unsworn falsification to authorities) shall

apply to any person providing information or making any

statement, whether written or oral, as required under this

chapter.

(2)  A person convicted of violating subsection (a)(1),

(2) and (3) commits a summary offense.

(3)  Except for subsection (a)(1), (2) and (3), a person

convicted of violating any of the provisions of subsection

(a) commits a misdemeanor of the first degree and shall pay a

fine of not less than $5,000. Except for subsection (a)(1),

(2) and (3), a person convicted of violating any of the

provisions of subsection (a) that is convicted of a second or

subsequent violation commits a felony of the second degree

and shall pay a fine of not less than $15,000.

(e)  Seizure, forfeiture and destruction of gaming

machines.--

(1)  Gaming machines shall be considered to be per se

illegal. Gaming machines and the proceeds therefrom may be

seized upon view as illegal contraband by the enforcement

bureau and any other law enforcement agency. The owner of a

gaming machine shall have no right to compensation for the

seizure and destruction of a gaming machine or the seizure of

proceeds of the gaming machine.

(2)  (i)  Notwithstanding any other provision of law, the

Office of Administrative Law Judge shall have the

authority to order forfeiture to the Commonwealth of

gaming machines and proceeds from the gaming machines

seized by the enforcement bureau and destruction of the

gaming machine. 

(ii)  Upon adjudication following a hearing, the

bureau may initiate forfeiture proceedings under this

section by filing a motion with the Office of

Administrative Law Judge.

(iii)  The motion may be filed at any time following

the issuance of the adjudication and disposition of all

appeals. The motion shall include all of the following:

(A)  A list and description of the property to be

forfeited.

(B)  The time and place of seizure.

(C)  The person in possession at time of seizure.

(D)  The owner, if known.

(E)  An attestation that the enforcement bureau

has sent a copy of the motion and a notice of

forfeiture to the video lottery retailer or to the

owner or possessor of the gaming machine by certified

mail at the last known address on file with the

Pennsylvania Liquor Control Board.

(iv)  The notice of forfeiture under subparagraph

(iii)(E) shall state that the gaming machines will be

destroyed and proceeds will be forfeited to the

Commonwealth by operation of law, unless the licensed

establishment owner or possessor of the gaming machine

files a written objection with the Office of

Administrative Law Judge setting forth a right of

possession of the seized property. The written objection

must be postmarked within 30 days of the mailing date of

the notice.

(v)  The Office of Administrative Law Judge shall

issue an order of forfeiture and destruction if the

Administrative Law Judge is satisfied that the

requirements of this subsection have been met.

(vi)  Upon receipt of a written objection to

forfeiture and destruction from the licensed

establishment owner or possessor of the gaming machine,

the Office of Administrative Law Judge shall issue an

order denying the motion for an order of forfeiture and

destruction.

(vii)  The licensed establishment owner, owner or

possessor of the gaming machine or enforcement bureau

shall have a right of appeal from an order issued under

subparagraph (v) or (vi) in accordance with the

procedures under section 471 of the Liquor Code for

appeals of adjudications issued by the Office of

Administrative Law Judge, except that any appeal will not

place in issue the finding of fact, conclusion of law or

sanction of the underlying adjudication.

(3)  This subsection shall apply to cases involving

gaming machines and proceeds seized by the enforcement bureau

prior to the effective date of this subsection.

(f)  Administrative sanctions.--

(1)  In addition to any other sanction, penalty or remedy

authorized by law or regulation, the secretary may impose any

sanction, penalty or remedy for a violation of this chapter

that is also available to the secretary under the State

Lottery Law.

(2)  The Office of Administrative Law Judge shall impose

all of the following penalties with respect to an order of

forfeiture and destruction issued under subsection (e):

(i)  For a first violation, a penalty of at least

$1,000 and not more than $5,000 against the owner or

possessor of a gaming machine seized by the bureau of

enforcement and for each subsequent violation, a penalty

of $15,000.

(ii)  In the case of a gaming machine seized from a

licensed establishment, for a first violation, a

suspension of the licensed establishment owner’s liquor

license for not less than seven consecutive days and for

each subsequent violation, a suspension of the liquor

license for not less than 14 consecutive days.

(3)  The Office of Administrative Law Judge shall impose

all of the following penalties with respect to any violation

of this chapter:

(i)  For a first violation, a penalty of at least

$1,000 and not more than $5,000 and for each subsequent

violation, a penalty of $15,000.

(ii)  For a first violation by a video lottery

retailer, a suspension of the liquor license held by the

video lottery retailer for each licensed establishment

where the video lottery retailer operates video lottery

terminals under a video lottery license and for each

subsequent violation, a suspension of each such liquor

license for not less than 14 consecutive days.

(4)  A liquor license suspension imposed under paragraph

(2) or (3) shall begin within 30 days following the

imposition of the suspension.

Section 508.  Local taxes and fees.

Video lottery terminals shall not be exempt from taxes and

amusement fees imposed by local municipalities.

Section 509.  Exemption from State gaming laws.

The following provisions shall not apply to video lottery

terminals authorized under this chapter and their use as

authorized under this chapter:

(1)  4 Pa.C.S. Pt. II (relating to gaming).

(2)  18 Pa.C.S. § 5513 (relating to gambling devices,

gambling, etc.).

(3)  The act of December 19, 1988 (P.L.1262, No.156),

known as the Local Option Small Games of Chance Act.

Section 510.  Exemption from Federal regulation.

The General Assembly declares that the Commonwealth is exempt

from section 2 of the Gambling Devices Transportation Act (64

Stat. 1134, 15 U.S.C. § 1172). Shipments of approved video

lottery terminals into this Commonwealth in compliance with

sections 3 and 4 of the Gambling Devices Transportation Act (15

U.S.C. §§ 1173 and 1174) shall be deemed legal shipments into

this Commonwealth.

CHAPTER 51

MISCELLANEOUS PROVISIONS

Section 5101.  Severability.

The provisions of this act are severable. If any provision of

this act or its application to any person or circumstance is

held invalid, the invalidity shall not affect other provisions

or applications of this act which can be given effect without

the invalid provision or application.

Section 5102.  Legislative intent.

The General Assembly finds that the cost of attending a

public community college or State university is increasingly out

of reach for Pennsylvania families. Therefore, the General

Assembly declares that the authorization of video lottery for

the purpose of raising funds to provide scholarships for

individuals seeking higher education is in the public interest.

The intent of the General Assembly is to confirm the authority

of the secretary under the State Lottery Law to conduct video

lottery and that the video lottery games are outside and

unrelated to gaming as authorized under 4 Pa.C.S. Pt. II

(relating to gaming).

Section 5103.  Temporary regulations.

(a)  Promulgation.--In order to facilitate the prompt

implementation of Chapter 5, the department may promulgate

temporary regulations which shall not be subject to:

(1)  Sections 201, 202 and 203 of the act of July 31,

1968 (P.L.769, No.240), referred to as the Commonwealth

Documents Law.

(2)  The act of June 25, 1982 (P.L.633, No.181), known as

the Regulatory Review Act.

(b)  Expiration.--The authority provided to the department to

adopt temporary regulations under subsection (a) shall expire

two years from the effective date of this section. Regulations

adopted after the two-year period shall be promulgated as

provided by law.

Section 5104.  Appropriations.

(a)  Department appropriations.--The sum of $20,000,000 is

appropriated from the General Fund to the Department of Revenue

for the fiscal period July 1, 2009, to June 30, 2010, to prepare

for, implement and administer the provisions of this act. The

money appropriated under this subsection shall be considered a

loan from the General Fund and shall be repaid to the General

Fund. The appropriation shall be a two-year appropriation and

shall not lapse until June 30, 2011.

(b)  Pennsylvania Liquor Control Board appropriations.--The

sum of $2,000,000 is appropriated from the General Fund to the

Liquor Control Board for the fiscal period July 1, 2009, to June

30, 2010, to prepare for, implement and administer the

provisions of this act. The money appropriated under this

subsection shall be considered a loan from the General Fund and

shall be repaid to the General Fund. The appropriation shall be

a two-year appropriation and shall not lapse until June 30,

2011.

(c)  Pennsylvania State Police appropriations.--The sum of

$3,000,000 is appropriated from the General Fund to the

enforcement bureau of the Pennsylvania State Police for the

fiscal period July 1, 2009, to June 30, 2010, to prepare for,

implement and administer the provisions of this act. The money

appropriated under this section shall be considered a loan from

the General Fund and shall be repaid to the General Fund. The

appropriation shall be a two-year appropriation and shall not

lapse until June 30, 2011.

Section 5105.  Effective date.

This act shall take effect immediately.

CHAPTER 1

<--

GENERAL PROVISIONS

Section 101.  Short title.

This act shall be known and may be cited as the Tuition

Relief Act.

Section 102.  Definitions.

The following words and phrases when used in this act shall

have the meanings given to them in this section unless the

context clearly indicates otherwise:

"Account."  The Enabling Students to Attend College Account.

"Agency."  The Pennsylvania Higher Education Assistance

Agency.

"Applicant."  A person who applies for a license or the

renewal of a license under Chapter 5.

"Central computer system."  A central site computer system

controlled by the Department of Revenue that at all times is

connected to video lottery terminals at licensed establishments

at which video lottery retailers are authorized to place and

operate video lottery terminals and that, at a minimum, is

capable of monitoring, communicating, auditing, retrieving

information, generating games for and activating and disabling

each video lottery terminal.

"Cheating or thieving device."  A device to facilitate any

winning play or to remove from any video lottery terminal money

or other contents. The term includes a tool, drill, wire, coin

or token attached to a string or wire and any electronic or

magnetic device.

"Coin-operated amusement machine."  A machine that requires

the insertion of a coin, currency or tokens to play or activate

a game, the outcome of which is primarily determined by the

skill of the player. The term shall not include a video lottery

terminal.

"Community college."  A public college operated under Article

XIX-A of the act of March 10, 1949 (P.L.30, No.14), known as the

Public School Code of 1949.

"Department."  The Department of Revenue of the Commonwealth.

"Eligible student."  A student who meets all of the

following:

(1)  Is enrolled at the undergraduate level in a degree

program or is enrolled in a certificate program at a public

institution of higher education.

(2)  Does not hold a bachelor's degree or its equivalent.

(3)  Does one of the following:

(i)  Participates in the scholarship program.

(ii)  Meets the family income requirements under

section 302(1).

(4)  Has complied with all of the Federal Title IV

financial assistance application and eligibility

requirements.

(5)  Has completed application requirements of the

agency.

"Enforcement Bureau."  The Bureau of Liquor Control

Enforcement of the Pennsylvania State Police.

"Expected family contribution."  A contribution as determined

under the policies and procedures established by the agency for

the scholarship program.

"Family income."  Income as established by the agency for the

scholarship program.

"First-time student."  An eligible student who has enrolled

in undergraduate level courses for the first time or is

readmitted to undergraduate level courses at the same or

different institution after a period of not less than three

years. The term shall include students enrolled for the first

time in the academic year who attended college in the prior

summer term or who entered with advanced standing due to college

credits earned before graduation from high school.

"Full-time student."  An eligible student that meets the

definition of full-time student as defined in the act of January

25, 1966 (1965 P.L.1546, No.541), referred to as the Higher

Education Scholarship Law.

"Fund."  The College Tuition Relief Fund.

"Gaming machine."  A device or machine that has the outcome

of play primarily determined by chance. The term shall include

an antique slot machine under 18 Pa.C.S. § 5513(c) (relating to

gambling devices, gambling, etc.) when used for profit. The term

shall not include any of the following:

(1)  A coin operated amusement machine.

(2)  A video lottery terminal that has all of its seals

or identification plates.

(3)  Slot machines as defined under 4 Pa.C.S. § 1103

(relating to definitions).

(4)  A game of chance under the act of December 19, 1988

(P.L.1262, No.156), known as the Local Option Small Games of

Chance Act.

(5)  Lottery terminals used under the act of August 26,

1971 (P.L.351, No.91), known as the State Lottery Law.

"Grocery store."  A retail establishment, that is less than

2,500 square feet or more than 8,500 square feet in size,

commonly known as a grocery store, supermarket or delicatessen,

where food, food products and supplies are sold for human

consumption on or off the premises with average monthly sales,

exclusive of wine sales, of not less than $5,000. The term shall

also include a licensed establishment with an interior

connection to a grocery store and the separate and segregated

portion of any other retail establishment which is dedicated

solely to the sale of food, food products and supplies for human

consumption on or off the premises with average monthly sales

with respect to the separate or segregated portion, exclusive of

wine sales, of not less than $5,000.

"Higher Education Scholarship Law."  The act of January 25,

1966 (1965 P.L.1546, No.541), referred to as the Higher

Education Scholarship Law.

"Licensed establishment."  A restaurant, eating place, hotel

or club as defined under section 102 of the act of April 12,

1951 (P.L.90, No.21), known as the Liquor Code, that operates

under a valid liquor or malt or brewed beverage license under

Article IV of the Liquor Code. The term shall not include a

grocery store or a licensed facility as defined under 4 Pa.C.S.

§ 1103 (relating to definitions).

"Licensed establishment owner."  A person who holds a license

to sell liquor or malt or brewed beverages at a licensed

establishment.

"Liquor Code."  The act of April 12, 1951 (P.L.90, No.21),

known as the Liquor Code.

"Manufacturer."  A person holding a manufacturer’s license

issued under Chapter 5 allowing the person to engage in the

business of designing, building, constructing, assembling or

manufacturing video lottery terminals, the electronic computer

components of video lottery terminals, the random number

generator of video lottery terminals or the cabinets in which

video lottery terminals are housed, and whose product is

intended for sale, lease or other assignment to an operator.

"Mode of instruction."  One of the following methods of

delivery of a public institution of higher education's

curriculum:

(1)  In person.

(2)  Via distance learning as defined by the United

States Department of Education for student aid purposes.

(3)  A combination of paragraphs (1) and (2).

"Office of Administrative Law Judge."  An adjudicative office

within the Pennsylvania Liquor Control Board charged with the

responsibility of presiding at all citation hearings and other

enforcement hearings under the act of April 12, 1951 (P.L.90,

No.21), known as the Liquor Code.

"Operator."  A person holding an operator’s license issued

under Chapter 5 allowing the person to do all of the following:

(1)  Purchase or lease a specified number of video

lottery terminals from one or more manufacturers.

(2)  Service and repair those video lottery terminals.

(3)  Enter into contracts with video lottery retailers

for placement of those video lottery terminals in licensed

establishments where video lottery terminals have been

authorized for placement and operation under Chapter 5.

"Part-time student."  An eligible student who is enrolled on

a less than full-time basis.

"Pennsylvania Lottery."  The Division of the State Lottery of

the Department of Revenue.

"Person."  Any natural person, corporation, foundation,

organization, business trust, estate, limited liability company,

licensed corporation, trust, partnership, association or any

other form of legal business entity.

"Profits."  The total value of all cash, tickets and credits

used for the play of a video lottery terminal less the amount

paid out in prizes. The value of tickets and credits shall be as

determined by the secretary.

"Public institution of higher education."  A community

college, technical school, State-related institution or an

institution which is part of the State System of Higher

Education under Article XX-A of the act of March 10, 1949

(P.L.30, No.14), known as the Public School Code of 1949.

"Scholarship program."  The scholarship program established

under the act of January 25, 1966 (1965 P.L.1546, No.541),

referred to as the Higher Education Scholarship Law.

"Secretary."  The Secretary of Revenue of the Commonwealth.

"Service technician."  An individual holding a service

technician's license issued under Chapter 5 allowing the

individual to service, maintain and repair video lottery

terminals. A service technician may be a sole proprietor,

partner or an employee of a person licensed under Chapter 5 or

an employee of a business not licensed under Chapter 5 that

services, maintains and repairs video lottery terminals owned or

leased by an operator through one or more service technicians.

"State-related institution."  All of the following:

(1)  Temple University.

(2)  The University of Pittsburgh.

(3)  The Pennsylvania State University.

(4)  Lincoln University.

"State Lottery Law."  The act of August 26, 1971 (P.L.351,

No.91), known as the State Lottery Law.

"Technical school."  The Thaddeus Stevens College of

Technology or a public postsecondary vocational program

accredited by the State Board of Vocational Education as

established under Article XVIII of the act of March 10, 1949

(P.L.30, No.14), known as the Public School Code of 1949, and

recognized by the United States Department of Education for the

purpose of determining eligibility for Federal student

assistance programs.

"Total cost of attendance."  The cost of attending a public

institution of higher education as determined under the policies

and procedures established by the United States Department of

Education.

"Unfunded total cost of attendance."  The total cost of

attendance minus the sum of all grants, scholarships, waivers

and other categories of gift-aid received, excluding veterans

educational benefits.

"Video lottery license."  A license issued by the secretary

authorizing the placement and operation of one or more video

lottery terminals at the licensed establishment specified in the

application for licensure.

"Video lottery retailer."  A licensed establishment owner

that holds a video lottery license.

"Video lottery terminal."  An interactive electronic terminal

or device that is compatible with the central computer system

and is approved by the secretary for the play of video lottery

games. The term shall not include an authorized slot machine as

defined under 4 Pa.C.S. § 1103 (relating to definitions).

CHAPTER 3

TUITION RELIEF

Section 301.  Supplement to State scholarship program.

(a)  Supplemental grants.--Except as provided under

subsections (b), (c) and (d), the agency shall award a

supplemental tuition relief grant to an eligible student

participating in the scholarship program so that the eligible

student's unfunded total cost of attendance is equal to the

eligible student's expected family contribution.

(b)  Minimum unfunded cost.--The unfunded cost of attendance

may not be less than $1,000 annually on a full-time equivalent

basis.

(c)  Supplemental grant minimum.--Except as provided under

subsections (b) and (d), the supplemental grant shall not be

less than 75% of the tuition rate of the public institution of

higher education applicable to the eligible student's status as

a full-time or part-time student.

(d)  Maximum award.--The total amount of all grants,

scholarships, waivers and other categories of gift aid,

excluding veterans educational benefits, received by an eligible

student may not exceed the eligible student's total cost of

attendance.

Section 302.  Tuition relief grants for additional Commonwealth

students.

The agency shall award a tuition relief grant to an eligible

student who is not eligible for a supplemental grant under

section 301 under the following conditions:

(1)  The student's family income does not exceed

$100,000.

(2)  The tuition relief grant shall be equal to 50% of

the tuition rate of the public institution of higher

education applicable to the eligible student's status as a

full-time or part-time student, except that the total amount

of all grants, scholarships, waivers and other categories of

gift-aid, excluding veterans educational benefits, may not

exceed the total cost of attendance and that the unfunded

total cost of attendance may not be less than $1,000 annually

on a full-time equivalent basis.

(3)  A student whose scholarship under the scholarship

program is terminated, denied or not renewed for reasons of

financial need, part-time enrollment status, remedial content

that does not exceed guidelines for the Federal Pell grant

program or mode of instruction shall not be disqualified for

a grant under this section on the basis of such termination,

denial or nonrenewal.

Section 303.  Implementation.

(a)  Awards.--Awards granted in the first year that grants

are awarded under this chapter shall be limited to first-time

students at public institutions of higher education. One

additional class of first-time students shall be added in each

subsequent year until the time as all classes of eligible

students at the public institution of higher education are

included. Nothing in this subsection shall limit the ability of

an eligible student who receives a grant under this chapter to

remain eligible for a grant upon returning from a gap in

enrollment, if all other eligibility requirements are met.

(b)  Part-time student.--In the case of a part-time student,

the amount of the grant under this chapter to which the eligible

student is entitled shall be reduced in proportion to the degree

to which that student is not attending on a full-time basis,

except that the total funds awarded to any eligible student

shall not exceed the amount to which the student would have been

entitled had the educational program been completed in the

standard duration for a full-time student as established by the

agency.

(c)  Reduction.--If sufficient funds are not transferred to

the agency under section 304 for the award of grants under this

chapter, all grants under this chapter shall be proportionately

reduced so as not to exceed the total amount of available funds.