THE GENERAL ASSEMBLY OF PENNSYLVANIA

HOUSE BILL

INTRODUCED BY READSHAW, GEIST, PARKER, DEASY, BRENNAN, V. BROWN, CALTAGIRONE, D. COSTA, DeWEESE, FABRIZIO, KNOWLES, KORTZ, MANN, M. O'BRIEN, PRESTON AND YOUNGBLOOD, MARCH 19, 2012

REFERRED TO COMMITTEE ON GAMING OVERSIGHT, MARCH 19, 2012  

AN ACT

Amending the act of August 26, 1971 (P.L.351, No.91), entitled

"An act providing for a State Lottery and administration

thereof; authorizing the creation of a State Lottery

Commission; prescribing its powers and duties; disposition of

funds; violations and penalties therefor; exemption of prizes

from State and local taxation and making an appropriation,"

providing for special lottery sales, for a source of funds

for repayment of bond indebtedness for mass transit purposes

and for the Economic Development Fund for Mass Transit; and

making an editorial change.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

Section 1.  Section 301 of the act of August 26, 1971

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

November 21, 1996 (P.L.741, No.134), is amended to read:

Section 301.  Statement of purpose.

This chapter is enacted to establish a lottery to be operated

by the State, the net proceeds of which are to be used after

June 30, 1972, for the purposes of providing property tax relief

for the elderly for taxes paid in 1971 and thereafter to persons

65 years of age or older and for providing certain free fixed

route local transit services to persons 65 years of age or older

and reduced fare on group ride transit service to persons 65

years of age or older. It is further intended to provide a means

through which to curb illegal gambling operations in

Pennsylvania[.] and to provide a source of funds for the

repayment of indebtedness on bonds issued for mass transit

development by a government agency or authority.

Section 2.  The act is amended by adding a section to read:

Section 304.1.  Special lottery sales.

(a)  Special lotteries.--The secretary shall conduct annually

at least 12 lotteries for the purpose of providing a source of

funds for the repayment of indebtedness on bonds issued for the

development of mass transit as economic development projects by

a government agency or authority. For lotteries conducted for

this purpose, the price of each ticket or share shall be $5.00.

(b)  Identification of special lotteries.--In all advertising

and on tickets, the secretary shall identify any lottery under

this section as being conducted for the benefit of the name and

location of the project.

(c)  Deposit of revenues.--Notwithstanding the provisions of

section 303(a)(11), the secretary shall deposit all revenues

received under this section, following the payment of prizes to

holders of winning tickets or shares and the payment of costs

incurred in the operation and administration of the lottery,

including the expenses of the division and the costs resulting

from any contract or contracts entered into for promotional,

advertising or operational services or for the purchase or lease

of lottery equipment and materials in the special fund in the

State Treasury, to be known as the Economic Development Fund for

Mass Transit. Moneys in the Economic Development Fund for Mass

Transit shall be used solely for the purposes described under

subsection (a).

(d)  Unclaimed prize money.--Unclaimed prize money on a

winning lottery ticket or share sold under this section shall be

retained by the secretary for payment to the person entitled

thereto for one year after the drawing in which the prize was

won. If no claim is made within such period, the prize money

shall be paid into the Economic Development Fund for Mass

Transit and used for purposes provided under this section.

Section 3.  Sections 311, 313 and 314 of the act, amended

November 21, 1996 (P.L.741, No.134), are amended to read:

Section 311.  Disposition of funds.

(a)  State Lottery Fund.--[All] Except as provided in section

304.1, moneys received from the operation of the State lottery

shall be deposited in a State Lottery Fund which is hereby

created. Such moneys shall be used to the extent necessary for

the payment of lottery prizes but the amount so used shall not

be less than 40% of the amount of which tickets or shares have

been sold. All payments of lottery prizes and for expenses of

operation of the lottery shall be made as provided by law. All

moneys remaining after payment of prizes and operating expenses

shall remain in the State Lottery Fund and shall be allocated

for the purpose of providing property tax relief for the elderly

for taxes paid in 1971 and thereafter pursuant to the provisions

of [the act of March 11, 1971 (P.L.104, No.3), known as the

Senior Citizens Rebate and Assistance Act] Chapter 13 of the act

of June 27, 2006 (1st Sp.Sess., P.L.1873, No.1), known as the

Taxpayer Relief Act, and for the purpose of providing free or

reduced fare transit service for the elderly pursuant to Chapter

9 and the act of February 11, 1976 (P.L.14, No.10), known as the

Pennsylvania Rural and Intercity Common Carrier Surface

Transportation Assistance Act. In the event sufficient funds are

not available from the lottery receipts to meet the requirements

of the Senior Citizens Rebate and Assistance Act or for

providing free or reduced fare transit service for the elderly

under Chapter 9 and the Pennsylvania Rural and Intercity Common

Carrier Surface Transportation Assistance Act, additional funds

to fulfill these obligations shall be appropriated from the

General Fund for this purpose.

(b)  Appropriations.--The moneys in said State Lottery Fund

shall be appropriated only:

(1)  For the payment of prizes to the holders of winning

lottery tickets or shares.

(2)  For the expenses of the division in its operation of

the lottery.

(3)  For property tax relief and free or reduced fare

transit service for the elderly as provided under subsection

(a).

Section 313.  Unclaimed prize money.

[Unclaimed] Except as provided in section 304.1, unclaimed 

prize money on a winning lottery ticket or share shall be

retained by the secretary for payment to the person entitled

thereto for one year after the drawing in which the prize was

won. If no claim is made within such period, the prize money

shall be paid into the State Lottery Fund and used for purposes

as otherwise herein provided.

Section 314.  Deposits and transactions.

The secretary may, in his discretion, require any or all

lottery sales agents to deposit to the credit of the State

Lottery Fund or, where applicable, the Economic Development Fund

for Mass Transit, in banks, designated by the State Treasurer,

all moneys received by such agents from the sale of lottery

tickets or shares, less the amount, if any, retained as

compensation for the sale of the tickets or shares, and to file

with the secretary or his designated agents reports of their

receipts and transactions in the sale of lottery tickets in such

form and containing such information as he may require. The

secretary may make such arrangements for any person, including a

bank, to perform such functions, activities or services in

connection with the operation of the lottery as he may deem

advisable pursuant to this chapter and the rules and regulations

of the department, and such functions, activities or services

shall constitute lawful functions, activities and services of

such person.

Section 4.  This act shall take effect in 60 days.