1Amending the act of August 26, 1971 (P.L.351, No.91), entitled
2"An act providing for a State Lottery and administration
3thereof; authorizing the creation of a State Lottery
4Commission; prescribing its powers and duties; disposition of
5funds; violations and penalties therefor; exemption of prizes
6from State and local taxation and making an appropriation,"
7in State Lottery, further providing for disposition of funds.

8The General Assembly of the Commonwealth of Pennsylvania
9hereby enacts as follows:

10Section 1. Section 311 of the act of August 26, 1971
11(P.L.351, No.91), known as the State Lottery Law, amended
12November 21, 1996 (P.L.741, No.134), is amended to read:

13Section 311. Disposition of funds.

14(a) State Lottery Fund.--All moneys received from the
15operation of the State lottery shall be deposited in a State
16Lottery Fund which is hereby created. Such moneys shall be used
17to the extent necessary for the payment of lottery prizes but

1the amount so used shall not be less than 40% of the amount of
2which tickets or shares have been sold. All payments of lottery
3prizes and for expenses of operation of the lottery shall be
4made as provided by law. All moneys remaining after payment of
5prizes and operating expenses shall remain in the State Lottery
6Fund and shall be allocated for the [purpose of providing
7property tax relief for the elderly for taxes paid in 1971 and
8thereafter pursuant to the provisions of the act of March 11,
91971 (P.L.104, No.3), known as the Senior Citizens Rebate and
10Assistance Act, and for the purpose of providing free or reduced
11fare transit service for the elderly pursuant to Chapter 9 and
12the act of February 11, 1976 (P.L.14, No.10), known as the
13Pennsylvania Rural and Intercity Common Carrier Surface
14Transportation Assistance Act. In the event sufficient funds are
15not available from the lottery receipts to meet the requirements
16of the Senior Citizens Rebate and Assistance Act or for
17providing free or reduced fare transit service for the elderly
18under Chapter 9 and the Pennsylvania Rural and Intercity Common
19Carrier Surface Transportation Assistance Act, additional funds
20to fulfill these obligations shall be appropriated from the
21General Fund for this purpose] purposes specified in subsection 
22(b).

23(b) Appropriations.--The moneys in said State Lottery Fund
24shall be appropriated only:

25(1) For the payment of prizes to the holders of winning
26lottery tickets or shares.

27(2) For the expenses of the division in its operation of
28the lottery.

29(3) For property tax relief and free or reduced fare
30transit service for the elderly as provided under subsection

1(a).

2(4) For pharmaceutical assistance for the elderly
3pursuant to this act under the PACE and PACENET programs.

4(5) For funding to the Department of Aging for
5distribution to local area agencies on aging and senior
6community centers.

7(6) For programs or services for individuals 60 years of
8age or older, which programs and services are otherwise
9legislatively authorized.

10(c) Restrictions.--Except as otherwise specifically
11authorized under subsection (b)(2) as it relates to expenses of
12the division in its operation of the lottery and subsection (b)
13(3) as it relates to property tax relief, no moneys in the State
14Lottery Fund shall be used:

15(1) To provide any benefit or service to any individual
16under 60 years of age.

17(2) To pay the operating expenses of any Commonwealth
18agency, including expenses incurred in the administration of
19any program or service funded by the State Lottery.

20(3) For any appropriation or loan to prepare for,
21implement or administer any program or service for
22individuals under 60 years of age.

23Section 2. This act shall take effect in 60 days.