See other bills
under the
same topic
PRINTER'S NO. 1599
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No.
1301
Session of
2017
INTRODUCED BY HARKINS, YOUNGBLOOD, BIZZARRO, O'BRIEN, ROZZI,
MILLARD, D. COSTA AND DIAMOND, APRIL 28, 2017
REFERRED TO COMMITTEE ON GAMING OVERSIGHT, APRIL 28, 2017
AN ACT
Amending Title 4 (Amusements) of the Pennsylvania Consolidated
Statutes, in licensees relating to gaming, further providing
for supplier licenses, for manufacturer licenses, for slot
machine testing and certification standards and for license
renewals and providing for slot machine license operation
fee; in table games, further providing for table game device
and associated equipment testing and certification standards
and for local share assessment; in revenues, further
providing for establishment of State Gaming Fund and net slot
machine revenue distribution; and making an editorial change.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Sections 1317(c)(1) and (d)(1) and (3) and
1317.1(c)(1) and (d)(1) and (3) of Title 4 of the Pennsylvania
Consolidated Statutes are amended to read:
§ 1317. Supplier licenses.
* * *
(c) Review and approval.--Upon being satisfied that the
requirements of subsection (b) have been met, the board may
approve the application and issue the applicant a supplier
license consistent with all of the following:
(1) The [initial license shall be for a period of one
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
year, and, if renewed under subsection (d), the] license
shall be issued for a period of [three] five years and shall
be renewed in accordance with subsection (d). Nothing in this
paragraph shall relieve a licensee of the affirmative duty to
notify the board of any changes relating to the status of its
license or to any information contained in the application
materials on file with the board.
* * *
(d) Renewal.--
(1) [Two] Six months prior to expiration of a supplier
license, the supplier licensee seeking renewal of its license
shall submit a renewal application accompanied by the renewal
fee to the board.
* * *
(3) If the board receives a complete renewal application
but fails to act upon the renewal application prior to the
expiration of the supplier license, the supplier license
shall continue in effect [for an additional six-month period
or] until acted upon by the board[, whichever occurs first].
* * *
§ 1317.1. Manufacturer licenses.
* * *
(c) Review and approval.--Upon being satisfied that the
requirements of subsection (b) have been met, the board may
approve the application and grant the applicant a manufacturer
license consistent with all of the following:
(1) The [initial license shall be for a period of one
year, and, if renewed under subsection (d), the] license
shall be issued for a period of [three] five years and shall
be renewed in accordance with subsection (d). Nothing in this
20170HB1301PN1599 - 2 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
paragraph shall relieve the licensee of the affirmative duty
to notify the board of any changes relating to the status of
its license or to any other information contained in
application materials on file with the board.
* * *
(d) Renewal.--
(1) [Two] Six months prior to expiration of a
manufacturer license, the manufacturer licensee seeking
renewal of its license shall submit a renewal application
accompanied by the renewal fee to the board.
* * *
(3) If the board receives a complete renewal application
but fails to act upon the renewal application prior to the
expiration of the manufacturer license, the manufacturer
license shall continue in effect [for an additional six-month
period or] until acted upon by the board[, whichever occurs
first].
* * *
Section 2. Section 1320(a) and (b) of Title 4 are amended
and the section is amended by adding a subsection to read:
§ 1320. Slot machine testing and certification standards.
(a) Use of other state standards.--[Until such time as the
board establishes an independent testing and certification
facility pursuant to subsection (b), the] The board may
determine, at its discretion, whether the slot machine testing
and certification standards of another jurisdiction within the
United States in which an applicant for a manufacturer license
is licensed are comprehensive and thorough and provide similar
adequate safeguards as those required by this part. If the board
makes that determination, it may permit a manufacturer through a
20170HB1301PN1599 - 3 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
licensed supplier as provided in section 1317 (relating to
supplier [and manufacturer licenses application] licenses) to
deploy those slot machines which have met the slot machine
testing and certification standards in such other jurisdictions
without undergoing the full testing and certification process by
a board-established independent facility. In the event slot
machines of an applicant for a manufacturer license are licensed
in such other jurisdiction, the board may determine to use an
abbreviated process requiring only that information determined
by the board to be necessary to consider the issuance of a slot
machine certification to such an applicant. Alternatively, the
board in its discretion may also rely upon the certification of
a slot machine that has met the testing and certification
standards of a board-approved private testing and certification
facility [until such time as the board establishes an
independent testing and certification facility pursuant to
subsection (b). Nothing in this section shall be construed to
waive any fees associated with obtaining a license through the
normal application process].
(b) Facility in Commonwealth.--[Within three years
immediately following the effective date of this part, the] The
board shall establish and maintain an independent slot machine
testing and certification facility. The cost for the
establishment and operation of an independent slot machine
testing and certification facility shall be paid by each
licensed manufacturer in accordance with a schedule adopted by
the board. The facility shall be made available to each slot
machine manufacturer and supplier as determined by the board.
* * *
(d) Use of private testing and certification facilities.--
20170HB1301PN1599 - 4 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
(1) Notwithstanding any other provision of this part or
regulation of the board, if a slot machine is tested and
certified by a private testing and certification facility
registered with the board, the board shall use an abbreviated
certification process requiring only that information
determined by the board to be necessary shall be considered
for issuance of a slot machine certification under this
section.
(2) Within one year of the effective date of this
subsection, the board shall promulgate regulations that:
(i) Provide for the registration of private testing
and certification facilities. Persons seeking
registration under this subsection shall be subject to
section 1202(b)(9) (relating to general and specific
powers).
(ii) Specify the form and content of the application
for registration.
(iii) Establish and collect an application fee for
persons seeking registration. The application fee shall
include the costs of all background investigations as
determined necessary and appropriate by the bureau.
(iv) Establish uniform procedures and standards that
private testing and certification facilities must comply
with during the testing and certification of slot
machines.
(v) Utilize information provided by private testing
and certification facilities for the abbreviated
certification of slot machines.
(vi) Establish an abbreviated certification process
that may be used by registered private testing and
20170HB1301PN1599 - 5 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
certification facilities to test and certify slot
machines.
(vii) Establish fees that must be paid by licensed
manufacturers.
(viii) Require slot machines submitted for
abbreviated certification to be approved or denied by the
board within 30 days from the date of submission to the
board. If the board fails to act within the 30-day
period, the abbreviated certification shall be deemed
conditionally approved.
(ix) Provide procedures and standards for the
suspension and revocation of the registration of a
private testing and certification facility and the
reinstatement of a suspended or revoked registration as
determined appropriate by the board.
Section 3. Section 1326 heading and (a) of Title 4 are
amended to read:
§ 1326. [License renewals] Renewals.
(a) Renewal.--All permits and licenses issued under this
part unless otherwise provided shall be subject to renewal every
[three] five years. Nothing in this subsection shall relieve a
permittee or licensee of the affirmative duty to notify the
board of any changes relating to the status of its permit or
license or to any other information contained in the application
materials on file with the board. The application for renewal
shall be submitted at least [60 days] six months prior to the
expiration of the permit or license and shall include an update
of the information contained in the initial and any prior
renewal applications and the payment of any renewal fee required
by this part. Unless otherwise specifically provided in this
20170HB1301PN1599 - 6 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
part, the amount of any renewal fee shall be calculated by the
board to reflect the longer renewal period. A permit or license
for which a completed renewal application and fee, if required,
has been received by the board will continue in effect unless
and until the board sends written notification to the holder of
the permit or license that the board has denied the renewal of
such permit or license.
* * *
Section 4. Title 4 is amended by adding a section to read:
§ 1326.1. Slot machine license operation fee.
(a) Imposition.--Beginning January 1, 2017, each Category 1
and Category 2 licensed gaming entity shall pay to the board an
annual slot machine license operation fee in an amount equal to
20% of the slot machine license fee paid at the time of issuance
under section 1209(a) (relating to slot machine license fee).
(b) Payment of fee.--The slot machine license operation fee
imposed under subsection (a) shall be paid in equal monthly
installments on or before the first day of each month.
(c) Failure to pay.--The board may at the board's discretion
suspend, revoke or deny a permit or license issued under this
part to a Category 1 licensed gaming entity or Category 2
licensed gaming entity that fails to pay the slot machine
license operation fee imposed under subsection (a).
(d) Deposit.--The slot machine license operation fees
collected by the board under this section shall be deposited in
the fund and are appropriated to the department on a continuing
basis for the purposes enumerated under section 1403(c)(3)
(relating to establishment of State Gaming Fund and net slot
machine revenue distribution).
Section 5. Section 13A41 of Title 4 is amended by adding a
20170HB1301PN1599 - 7 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
subsection to read:
§ 13A41. Table game device and associated equipment testing and
certification standards.
* * *
(c) Use of private testing and certification facilities.--
(1) Notwithstanding any provision of this part or
regulation of the board, if a table game device or associated
equipment is tested and certified by a private testing and
certification facility registered with the board, the board
shall use an abbreviated certification process requiring only
that information determined by the board to be necessary
shall be considered for issuance of a table game device or
associated equipment certification under this section.
(2) Within one year of the effective date of this
subsection, the board shall promulgate regulations that:
(i) Provide for the registration of private testing
and certification facilities. Persons seeking
registration under this subsection shall be subject to
section 1202(b)(9) (relating to general and specific
powers).
(ii) Specify the form and content of the application
for registration.
(iii) Establish and collect an application fee for
persons seeking registration. The application fee shall
include the costs of all background investigations as
determined necessary and appropriate by the board.
(iv) Establish uniform procedures and standards that
private testing and certification facilities must comply
with during the testing and certification of table game
devices and associated equipment.
20170HB1301PN1599 - 8 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
(v) Utilize information provided by private testing
and certification facilities for the abbreviated
certification of table game devices or associated
equipment.
(vi) Establish an abbreviated certification process
that may be used by registered private testing and
certification facilities to test and certify table game
devices or associated equipment.
(vii) Establish fees that must be paid by a licensed
manufacturer.
(viii) Require table game devices and associated
equipment submitted for abbreviated certification to be
approved or denied by the board within 30 days from the
date of submission to the board. If the board fails to
act within the 30-day period, the abbreviated
certification shall be deemed conditionally approved.
(ix) Provide procedures and standards for the
suspension and revocation of the registration of a
private testing and certification facility and the
reinstatement of a suspended or revoked registration.
Section 6. Section 13A63(b)(2)(ii) and (iii), (3)(iii)(A)
and (C) and (4)(i) of Title 4 are amended to read:
§ 13A63. Local share assessment.
* * *
(b) Distributions to counties.--The department shall make
quarterly distributions from the local share assessments
deposited into the fund under subsection (a) to counties,
including home rule counties, hosting a licensed facility
authorized to conduct table games under this chapter in
accordance with the following:
20170HB1301PN1599 - 9 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
* * *
(2) If the facility is a Category 1 licensed facility
that is located at a thoroughbred racetrack and the county in
which the licensed facility is located is:
* * *
(ii) Except as set forth in subparagraph (iii), a
county of the third class: 50% of the licensed
facility's local share assessment shall be distributed as
follows:
(A) Seventy-five percent to the county to be
used solely to fund the establishment of a county
violent crime task force to reduce gang violence, gun
trafficking and violence and drug-related crimes in
the county. The district attorney shall appoint,
direct and coordinate the operations and personnel of
the task force.
(B) Twenty-five percent to a contiguous county
of the fifth class containing a township of the
second class that receives a portion of the licensed
facility's local share assessment under subsection
(c)(5)(iii).
(iii) A county of the third class which is also a
home rule county: 100% of the licensed facility's local
share assessment shall be distributed [to a community
college that is established in the county after the
effective date of this subparagraph and prior to January
1, 2014, to be used by the community college for
organizational, administrative, operating and capital
expenditures and the payment of principal, interest and
expenses related to indebtedness, subject to the
20170HB1301PN1599 - 10 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
following] as follows:
(A) [Until January 1, 2014, or until a community
college is established after the effective date of
this subparagraph prior to January 1, 2014, whichever
occurs first, 100% of the licensed facility's local
share assessment] Ninety percent shall be distributed
to the county redevelopment authority to be deposited
and maintained by the county redevelopment authority
in a restricted receipts account. The funds may be
invested by the county redevelopment authority as
permitted by law, and any interest earned on the
funds and investment income derived from the funds
shall be deposited into the restricted receipts
account. The funds in the restricted receipts account
shall be [distributed as provided in clause (B) or
used as provided in clause (C), as applicable.
(B) If a community college is established in the
county following the effective date of this
subparagraph and prior to January 1, 2014, the funds
in the restricted receipts account established under
clause (A) shall be distributed in their entirety by
the county redevelopment authority to the community
college no later than 60 days following the date of
the establishment of the community college.
(C) If a community college is not established in
the county following the effective date of this
subparagraph and prior to January 1, 2014, beginning
January 1, 2014, 100% of the licensed facility's
local share assessment shall be distributed to the
county redevelopment authority to be deposited into
20170HB1301PN1599 - 11 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
the restricted receipts account established under
clause (A), and all funds in the restricted receipts
account shall be] used by the county redevelopment
authority for a revolving loan program available to
municipalities within the county for infrastructure
projects, including, but not limited to, water,
sewer, storm water management, flood control, roads,
broadband Internet access, site remediation and
public utility infrastructure in areas other than a
public utility's own facilities. The county
redevelopment authority may use funds from the
revolving loan program for expenses related to the
cost to administer the revolving loan program in an
amount not in excess of 0.5% of the revolving loan
program portfolio in a given calendar year. A
municipality may not use funds received under the
revolving loan program for general budget or
operating expenses. The county redevelopment
authority shall develop loan program criteria and
guidelines consistent with the provisions of this
clause.
[(D) For purposes of this subparagraph, a
community college shall be considered to be
established on the date on which the proposed
community college plan is approved by the State Board
of Education within the meaning of section 1903-A(c)
of the act of March 10, 1949 (P.L.30, No.14), known
as the Public School Code of 1949, notwithstanding
the fact that a board of trustees of the community
college may not have yet been appointed by the
20170HB1301PN1599 - 12 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
governing bodies of the local sponsor of the
community college.]
(E) Ten percent shall be distributed to a city
of the third class with a population of not less than
80,000 to be used exclusively for police, fire and
other emergency services or infrastructure projects.
Notwithstanding the provisions of the act of February
9, 1999 (P.L.1, No.1), known as the Capital
Facilities Debt Enabling Act, grants made under this
clause may be utilized as local matching funds for
other grants or loans from the Commonwealth.
(3) If the facility is a Category 2 licensed facility
and if the county in which the licensed facility is located
is:
* * *
(iii) A county of the third class where a city of
the third class hosting the licensed facility is located
in two counties of the third class: 50% of the licensed
facility's local share assessment shall be distributed as
follows:
(A) Sixty percent to the county in which the
licensed facility is located, which shall be
deposited into a restricted receipts account to be
established in the Commonwealth Financing Authority
and to be used exclusively for economic development
projects, community improvement projects and other
projects in the public interest within the county.
* * *
(C) Twenty percent to the nonhost county in
which the host city is located, of which 50% shall be
20170HB1301PN1599 - 13 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
deposited into a restricted receipts account to be
established in the Commonwealth Financing Authority
and to be used [solely] exclusively for grants to
municipalities [that are contiguous to the host city]
within the nonhost county for economic development
projects, community improvement projects and other
projects in the public interest.
* * *
(4) The following apply:
(i) If the facility is a Category 3 licensed
facility located in a county of the second class A: 50%
of the licensed facility's local share assessment shall
be [deposited into a restricted receipts account to be
established in the Commonwealth Financing Authority to be
used exclusively for grants or guarantees for projects in
the county that qualify under 64 Pa.C.S. §§ 1551
(relating to Business in Our Sites Program), 1556
(relating to Tax Increment Financing Guarantee Program)
and 1558 (relating to Water Supply and Waste Water
Infrastructure Program).] distributed as follows:
(A) Seventy-five percent shall be distributed to
the county hosting the licensed facility from each
such licensed facility for the purpose of supporting
the maintenance and refurbishment of the Parks and
Heritage sites throughout the county in which the
licensee is located.
(B) Twelve and one-half percent shall be
distributed to the county hosting the licensed
facility from each such licensed facility for the
purpose of supporting a child advocacy center located
20170HB1301PN1599 - 14 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
within the county in which the licensee is located.
(C) Twelve and one-half percent shall be
distributed to the county hosting the licensed
facility from each such licensed facility for the
purpose of supporting an organization providing
comprehensive support services to victims of domestic
violence, including legal and medical aid, shelters,
transitional housing and counseling located within
the county in which the licensee is located.
* * *
Section 7. Section 1403(c)(2)(i)(A), (D), (E), (ii)(A) and
(D), (iii)(A) and (D.1), (iv)(B), (3) and (e) are reenacted and
amended, subsection (c) is amended by adding paragraphs and (c)
(2)(ii) is amended by adding clauses to read:
§ 1403. Establishment of State Gaming Fund and net slot machine
revenue distribution.
* * *
(c) Transfers and distributions.--The department shall:
* * *
(2) From the local share assessment established in
subsection (b), make quarterly distributions among the
counties hosting a licensed facility in accordance with the
following schedule:
(i) If the licensed facility is a Category 1
licensed facility that is located at a harness racetrack
and the county, including a home rule county, in which
the licensed facility is located is:
(A) A county of the first class: [4%] 2% of the
gross terminal revenue to the county hosting the
licensed facility from each such licensed facility.
20170HB1301PN1599 - 15 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
Notwithstanding any other provision to the contrary,
funds from licensed gaming entities located within a
county of the first class shall not be distributed
outside of a county of the first class.
* * *
(D) (I) A county of the third class: Except as
provided in subclause (II), 2% of the gross
terminal revenue from each such licensed facility
shall be deposited into a restricted receipts
account to be established in the Commonwealth
Financing Authority to be used exclusively for
grants for projects in the public interest to
municipalities within the county where the
licensed facility is located.
(I.1) Priority shall be given to multiyear
projects approved or awarded by the Department of
Community and Economic Development under
subclause (I) on or before the effective date of
this subclause.
(I.2) In addition to municipalities that are
eligible to receive grant funding under subclause
(I), a county redevelopment authority within the
county shall also be eligible to receive grant
funding to be used exclusively for economic
development projects or infrastructure. A county
redevelopment authority shall not be eligible to
receive more than 10% of the total grant funds
awarded.
(I.3) Notwithstanding the act of February 9,
1999 (P.L.1, No.1), known as the Capital
20170HB1301PN1599 - 16 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
Facilities Debt Enabling Act, grants made under
subclause (I) may be utilized as local matching
funds for other grants or loans from the
Commonwealth.
(II) If a licensed facility is located in
one of two counties of the third class where a
city of the third class is located in both
counties of the third class, the county in which
the licensed facility is located shall receive
1.2% of the gross terminal revenue to be
distributed as follows: 20% to the host city,
30% to the host county and 50% to the host county
for the purpose of making municipal grants within
the county, with priority given to municipalities
contiguous to the host city. The county of the
third class, which includes a city of the third
class that is located in two counties of the
third class and is not the host county for the
licensed facility, shall receive .8% of the gross
terminal revenue to be distributed as follows:
60% to a nonhost city of the third class located
solely in the nonhost county in which the host
city of the third class is also located or 60% to
the nonhost city of the third class located both
in the host and nonhost counties of the third
class, 35% to the nonhost county and 5% to the
nonhost county for the purpose of making
municipal grants within the county.
(E) A county of the fourth class: 2% of the
gross terminal revenue from each such licensed
20170HB1301PN1599 - 17 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
facility shall be distributed as follows:
(I) The department shall make distributions
directly to each municipality within the county,
except the host municipality, by using a formula
equal to the sum of $25,000 plus $10 per resident
of the municipality using the most recent
population figures provided by the Department of
Community and Economic Development, provided,
however, that the amount so distributed to any
municipality shall not exceed 50% of its total
budget for fiscal year 2009 or 2013, whichever is
greater, adjusted for inflation in subsequent
fiscal years by an amount not to exceed an annual
cost-of-living adjustment calculated by applying
any upward percentage change in the Consumer
Price Index immediately prior to the date the
adjustment is due to take effect. Distributions
to a municipality in accordance with this
subclause shall be deposited into a special fund
which shall be established by the municipality.
The governing body of the municipality shall have
the right to draw upon the special fund for any
lawful purpose provided that the municipality
identifies the fund as the source of the
expenditure. Each municipality shall annually
submit a report to the Department of Community
and Economic Development detailing the amount and
purpose of each expenditure made from the special
fund during the prior fiscal year.
(II) Any funds not distributed under
20170HB1301PN1599 - 18 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
subclause (I) shall be deposited into a
restricted receipts account established in the
Department of Community and Economic Development
to be used exclusively for grants to the county,
to economic development authorities or
redevelopment authorities within the county for
grants for economic development projects,
infrastructure projects, job training, community
improvement projects, other projects in the
public interest, and necessary and reasonable
administrative costs. Notwithstanding the
provisions of the act of February 9, 1999 (P.L.1,
No.1), known as the Capital Facilities Debt
Enabling Act, grants made under this clause may
be utilized as local matching funds for other
grants or loans from the Commonwealth.
* * *
(ii) If the licensed facility is a Category 1
licensed facility and is located at a thoroughbred
racetrack and the county in which the licensed facility
is located is:
(A) A county of the first class: [4%] 2% of the
gross terminal revenue to the county hosting the
licensed facility from each such licensed facility.
Notwithstanding any other provision to the contrary,
funds from licensed gaming entities located within
the county of the first class shall not be
distributed outside of a county of the first class.
* * *
(D) A county of the third class: 1% of the
20170HB1301PN1599 - 19 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
gross terminal revenue to the county hosting the
licensed facility from each such licensed facility,
less any amount paid under clause (D.1) or (D.2). An
additional 1% of the gross terminal revenue to the
county hosting the licensed facility from each such
licensed facility for the purpose of municipal grants
within the county in which the licensee is located.
Notwithstanding the provisions of the Capital
Facilities Debt Enabling Act, grants made under this
clause may be utilized as local matching funds for
other grants or loans from the Commonwealth.
(D.1) If a licensed facility is located in a
county of the third class where a city of the third
class with a population of not less than 80,000 is
located, $100,000 shall be distributed annually to
the city of the third class to be used exclusively
for police, fire and other emergency services or
infrastructure projects. Notwithstanding the
provisions of the Capital Facilities Debt Enabling
Act, grants made under this clause may be utilized as
local matching funds for other grants or loans from
the Commonwealth.
(D.2) If a licensed facility is located in a
county of the third class and owning land adjacent to
the licensed facility in more than one township of
the second class, $500,000 shall be distributed
annually to a contiguous county of the fifth class
containing a township that receives a portion of the
licensed facility's local share assessment under
paragraph (3)(v).
20170HB1301PN1599 - 20 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
* * *
(iii) If the facility is a Category 2 licensed
facility and if the county in which the licensed facility
is located is:
(A) A county of the first class: [4%] 2% of the
gross terminal revenue to the county hosting the
licensed facility from each such licensed facility.
Notwithstanding any other provision to the contrary,
funds from licensed gaming entities located within a
county of the first class shall not be distributed
outside of a county of the first class. [The first
$5,000,000] Fifty percent of the total amount
distributed annually to the county of the first class
or $5,000,000, whichever is greater, shall be
distributed to the Philadelphia School District.
* * *
(D.1) If a licensed facility is located in one
of two counties of the third class where a city of
the third class is located in both counties of the
third class, the county in which the licensed
facility is located shall receive 1.2% of the gross
terminal revenue to be distributed as follows: 20%
to the host city, 30% to the host county and 50% to
the host county [for the purpose of making municipal
grants within the county,] which percentage shall be
deposited into a restricted receipts account to be
established in the Commonwealth Financing Authority
to be used exclusively for economic development
projects, community improvement projects and other
projects in the public interest within the host
20170HB1301PN1599 - 21 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
county, with priority given to municipalities
contiguous to the host city. The county of the third
class, which includes a city of the third class that
is located in two counties of the third class and is
not the host county for the licensed facility, shall
receive .8% of the gross terminal revenue to be
distributed as follows: 60% to a nonhost city of the
third class located solely in the nonhost county in
which the host city of the third class is also
located or 60% to the nonhost city of the third class
located both in the host and nonhost counties of the
third class, 35% to the nonhost county and 5% to the
nonhost county [for the purpose of making municipal
grants within the county.] which percentage shall be
deposited into a restricted receipts account to be
established in the Commonwealth Financing Authority
to be used exclusively for economic development
projects, community improvement projects and other
projects in the public interest within the nonhost
county.
* * *
(iv) * * *
(B) If the facility is a Category 3 licensed
facility located in a county of the second class A,
2% of the gross terminal revenue [from the licensed
facility shall be deposited into a restricted
receipts account to be established in the
Commonwealth Financing Authority to be used
exclusively for grants or guarantees for projects in
the host county that qualify under 64 Pa.C.S. §§ 1551
20170HB1301PN1599 - 22 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
(relating to Business in Our Sites Program), 1556
(relating to Tax Increment Financing Guarantee
Program) and 1558 (relating to Water Supply and
Wastewater Infrastructure Program).] shall be
distributed to the county hosting the licensed
facility from each such licensed facility and shall
be deposited as follows:
(I) Seventy-five percent shall be deposited
for the purpose of supporting the maintenance and
refurbishment of parks and heritage sites
throughout the county in which the licensed
facility is located.
(II) Twelve and one-half percent shall be
deposited for the purpose of supporting a child
advocacy center located within the county in
which the licensed facility is located.
(III) Twelve and one-half percent shall be
deposited for the purpose of supporting an
organization providing comprehensive support
services to victims of domestic violence,
including legal and medical aid, shelter,
transitional housing and counseling located
within the county in which the licensed facility
is located.
* * *
(3) From [the local share assessment established in
subsection (b)] the slot machine operation fees deposited
into the fund under section 1326.1(d) (relating to slot
machine license operation fee), make quarterly distributions
among the municipalities, including home rule municipalities,
20170HB1301PN1599 - 23 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
hosting a licensed facility in accordance with the following
schedule:
[(i) To a city of the second class hosting a
licensed facility, other than a Category 3 licensed
facility, 2% of the gross terminal revenue or $10,000,000
annually, whichever is greater, shall be paid by each
licensed gaming entity operating a facility located in
that city. In the event that the revenues generated by
the 2% do not meet the $10,000,000 minimum specified in
this subparagraph, the department shall collect the
remainder of the minimum amount of $10,000,000 from each
licensed gaming entity operating a facility in the city
and deposit that amount in the city treasury.]
(i.1) To a city of the first class hosting a
licensed facility, other than a Category 3 licensed
facility, $10,000,000 annually shall be distributed to
the city treasury.
(i.2) To a city of the second class hosting a
licensed facility, other than a Category 3 licensed
facility, $10,000,000 annually shall be distributed to
the city treasury.
(ii) To a city of the second class A hosting a
licensed facility, other than a Category 3 licensed
facility, [2% of the gross terminal revenue or]
$10,000,000 annually[, whichever is greater, shall be
paid by each licensed entity operating a licensed
facility located in that city] shall be distributed to
the city, subject, however, to the budgetary limitation
in this subparagraph. The amount allocated to the
designated municipalities shall not exceed 50% of their
20170HB1301PN1599 - 24 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
total budget for fiscal year 2003-2004, adjusted for
inflation in subsequent years by an amount not to exceed
an annual cost-of-living adjustment calculated by
applying the percentage change in the Consumer Price
Index immediately prior to the date the adjustment is due
to take effect. Any remaining moneys shall be [collected
by the department from each licensed gaming entity and]
distributed in accordance with paragraph (2) based upon
the classification of county where the licensed facility
is located. [In the event that the revenues generated by
the 2% do not meet the $10,000,000 minimum specified in
this subparagraph, the department shall collect the
remainder of the minimum amount of $10,000,000 from each
licensed gaming entity operating a facility in the city,
pay any balance due to the city and transfer any
remainder in accordance with paragraph (2).]
(iii) To a city of the third class hosting a
licensed facility, other than a Category 3 licensed
facility, [2% of the gross terminal revenue or]
$10,000,000 annually[, whichever is greater, shall be
paid by each licensed gaming entity operating a licensed
facility located in that city,] less any amount up to
$5,000,000 received pursuant to a written agreement with
a licensed gaming entity executed prior to the effective
date of this part, shall be distributed to the city,
subject, however, to the budgetary limitation in this
subparagraph. In the event that the city has a written
agreement with a licensed gaming entity executed prior to
the effective date of this part, the amount paid under
the agreement to the city shall be applied and credited
20170HB1301PN1599 - 25 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
[to the difference between 2% of the gross terminal
revenue and the $10,000,000 owed under this subparagraph
if the 2% of the gross terminal revenue is less than
$10,000,000. If 2% of the gross terminal revenue is
greater than the $10,000,000 required to be paid under
this subparagraph, the credit shall not apply. The amount
of gross terminal revenue required to be paid pursuant to
the agreement shall be deemed to be gross terminal
revenue for purposes of this subparagraph.], up to
$5,000,000, to the slot machine license operation fee
owed under section 1326.1. The amount allocated to the
designated municipalities shall not exceed 50% of their
total budget for fiscal year 2003-2004, adjusted for
inflation in subsequent years by an amount not to exceed
an annual cost-of-living adjustment calculated by
applying the percentage change in the Consumer Price
Index immediately prior to the date the adjustment is due
to take effect. Any remaining moneys shall be [collected
by the department from each licensed gaming entity and]
distributed in accordance with paragraph (2) based upon
the classification of county where the licensed facility
is located. [In the event that the revenues generated by
the 2% do not meet the $10,000,000 minimum specified in
this subparagraph, the department shall collect the
remainder of the minimum amount of $10,000,000 from each
licensed gaming entity operating a facility, pay any
balance due to the city of the third class and transfer
any remainder in accordance with paragraph (2).]
(iii.1) If a licensed facility, other than a
Category 3 licensed facility, is located in a city of the
20170HB1301PN1599 - 26 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
third class and the city is located in more than one
county of the third class, [2% of the gross terminal
revenue or] $10,000,000 annually, [whichever is greater,]
shall be distributed as follows: 80% to the host city
and 20% to the city of the third class located solely in
a nonhost county in which the host city of the third
class is also located. If a licensed facility, other than
a Category 3 licensed facility, is located in a city of
the third class and that city is located solely in a host
county of the third class in which a nonhost city of the
third class is also located, [2% of gross terminal
revenue or] $10,000,000 annually[, whichever is greater,]
shall be distributed as follows: 80% to the host city
and 20% to a city of the third class located both in a
nonhost county of the third class and in a host county of
the third class in which the host city of the third class
is located.
(iv) To a township of the first class hosting a
licensed facility, other than a Category 3 licensed
facility, [2% of the gross terminal revenue or]
$10,000,000 annually[, whichever is greater, shall be
paid by each licensed gaming entity operating a licensed
facility located in the township] shall be distributed to
the township, subject, however, to the budgetary
limitation in this subparagraph. The amount allocated to
the designated municipalities shall not exceed 50% of
their total budget for fiscal year 2003-2004, adjusted
for inflation in subsequent years by an amount not to
exceed an annual cost-of-living adjustment calculated by
applying the percentage change in the Consumer Price
20170HB1301PN1599 - 27 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
Index immediately prior to the date the adjustment is due
to take effect. Any remaining money shall be [collected
by the department from each licensed gaming entity and]
distributed in accordance with paragraph (2) based upon
the classification of county where the licensed facility
is located. [In the event that the revenues generated by
the 2% do not meet the $10,000,000 minimum specified in
this subparagraph, the department shall collect the
remainder of the minimum amount of $10,000,000 from each
licensed gaming entity operating a licensed facility in
the township, pay any balance due to the township and
transfer any remainder in accordance with paragraph (2).]
(v) To a township of the second class hosting a
licensed facility:
(A) [2% of the gross terminal revenue or]
$10,000,000 annually[, whichever is greater, shall be
paid by each licensed gaming entity operating a
licensed facility, other than a Category 3 licensed
facility or a licensed facility owning land adjacent
to the licensed facility located in more than one
township of the second class,] shall be distributed
to the township of the second class hosting [the] a
licensed facility, other than a Category 3 licensed
facility or a licensed facility located in more than
one township of the second class, subject, however,
to the budgetary limitation in this subparagraph. The
amount allocated to the designated municipalities
shall not exceed 50% of their total budget for fiscal
year 2003-2004, adjusted for inflation in subsequent
years by an amount not to exceed an annual cost-of-
20170HB1301PN1599 - 28 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
living adjustment calculated by applying the
percentage change in the Consumer Price Index
immediately prior to the date the adjustment is due
to take effect. Any remaining money shall be
[collected by the department from each licensed
gaming entity and] distributed in accordance with
paragraph (2) based upon the classification of county
where the licensed facility is located. [If revenues
generated by the 2% do not meet the $10,000,000
minimum specified in this subparagraph, the
department shall collect the remainder of the minimum
amount of $10,000,000 from each licensed gaming
entity operating a licensed facility in the township,
pay any balance due to the township and transfer any
remainder in accordance with paragraph (2).]
(B) [2% of the gross terminal revenue or]
$10,000,000 annually[, whichever is greater,] less
the amount paid under clause (C), shall be [paid by
each licensed gaming entity operating a licensed
facility and owning land adjacent to the licensed
facility located in more than one township of the
second class, other than a Category 3 licensed
facility,] distributed to the township of the second
class hosting [the] a licensed facility which owns
land adjacent to the licensed facility located in
more than one township of the second class, other
than a Category 3 licensed facility, subject,
however, to the budgetary limitation in this
subparagraph. The amount allocated to the designated
municipalities may not exceed 50% of their total
20170HB1301PN1599 - 29 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
budget for the fiscal year 2003-2004, adjusted for
inflation in subsequent years by an amount not to
exceed an annual cost-of-living adjustment calculated
by applying the percentage change in the Consumer
Price Index immediately prior to the date the
adjustment is due to take effect. Any remaining money
shall be [collected by the department from each
licensed gaming entity and] distributed in accordance
with paragraph (2) based upon the classification of
the county where the licensed facility is located.
The county commissioners of a county of the third
class in which the licensed facility is located shall
appoint an advisory committee for the purpose of
advising the county as to the need for municipal
grants for health, safety, transportation and other
projects in the public interest to be comprised of
two individuals from the host municipality, two from
contiguous municipalities within the county of the
third class and one from the host county. [In the
event that the revenues generated by the 2% do not
meet the $10,000,000 minimum specified in this
subparagraph, the department shall collect the
remainder of the minimum amount of $10,000,000 from
each licensed gaming entity operating a licensed
facility in the township, pay any balance due to the
township and transfer any remainder in accordance
with paragraph (2).]
(C) [$160,000 annually shall be paid by each
licensed gaming entity operating a licensed facility
and owning land adjacent to the licensed facility
20170HB1301PN1599 - 30 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
located in more than one township of the second
class, other than a Category 3 licensed facility, to
the township of the second class that is located in a
county of the fifth class in which the adjacent land
is located, including racetracks, grazing fields or
any other adjoining real property.] For land owned by
a licensed gaming entity, other than a Category 3
licensed facility, and located in more than one
township of the second class: $160,000 shall be
distributed annually to the township of the second
class which is located in a county of the fifth class
if the land owned, including racetracks, grazing
fields and other adjoining real property, is adjacent
to the licensed facility.
(vi) To a borough hosting a licensed facility, other
than a Category 3 licensed facility, [2% of the gross
terminal revenue or] $10,000,000 annually[, whichever is
greater, shall be paid by each licensed gaming entity
operating a licensed facility located in that borough,]
shall be distributed to the borough, subject, however, to
the budgetary limitation in this subparagraph. The amount
allocated to the designated municipalities shall not
exceed 50% of their total budget for fiscal year 2003-
2004, adjusted for inflation in subsequent years by an
amount not to exceed an annual cost-of-living adjustment
calculated by applying the percentage change in the
Consumer Price Index immediately prior to the date the
adjustment is due to take effect. Any remaining money
shall be [collected by the department from each licensed
gaming entity and] distributed in accordance with
20170HB1301PN1599 - 31 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
paragraph (2) based upon the classification of county
where the licensed facility is located. [In the event
that the revenues generated by the 2% do not meet the
$10,000,000 minimum specified in this subparagraph, the
department shall collect the remainder of the minimum
amount of $10,000,000 from each licensed gaming entity
operating a licensed facility in the borough, pay any
balance due to the borough and transfer any remainder in
accordance with paragraph (2).]
(vii) To an incorporated town hosting a licensed
facility, other than a Category 3 licensed facility, [2%
of the gross terminal revenue or] $10,000,000 annually[,
whichever is greater, shall be paid by each licensed
entity operating a licensed facility located in the
town,] shall be distributed to the incorporated town,
subject, however, to the budgetary limitation in this
subparagraph. The amount allocated to the designated
municipalities shall not exceed 50% of their total budget
for fiscal year 2003-2004, adjusted for inflation in
subsequent years by an amount not to exceed an annual
cost-of-living adjustment calculated by applying the
percentage change in the Consumer Price Index immediately
prior to the date the adjustment is due to take effect.
Any remaining money shall be [collected by the department
from each licensed gaming entity and] distributed in
accordance with paragraph (2) based upon the
classification of county where the licensed facility is
located. [In the event that the revenues generated by the
2% do not meet the $10,000,000 minimum specified in this
subparagraph, the department shall collect the remainder
20170HB1301PN1599 - 32 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
of the minimum amount of $10,000,000 from each licensed
gaming entity operating a licensed facility in the
incorporated town, pay any balance due to the town and
transfer any remainder in accordance with paragraph (2).
(viii) (A) Except as provided in clause (B) or (C),
to a municipality of any class hosting a Category 3
facility, 2% of the gross terminal revenue from the
Category 3 licensed facility located in the
municipality, subject, however, to the budgetary
limitation in this clause. The amount allocated to
the designated municipalities shall not exceed 50% of
their total budget for fiscal year 2009, adjusted for
inflation in subsequent years by an amount not to
exceed an annual cost-of-living adjustment calculated
by applying the percentage change in the Consumer
Price Index immediately prior to the date the
adjustment is due to take effect. Any remaining money
shall be collected by the department from each
licensed gaming entity and distributed in accordance
with paragraph (2) based upon the classification of
county where the licensed facility is located.
(B) If the municipality hosting a Category 3
licensed facility is a borough located in a county of
the third class and the borough is contiguous to a
city of the third class, 1% of gross terminal revenue
shall be distributed to the host borough and 1% of
gross terminal revenue shall be distributed to the
city of the third class that is contiguous to the
host borough, subject, however, to the budgetary
limitation in this clause. The amount allocated to
20170HB1301PN1599 - 33 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
each designated municipality shall not exceed 50% of
its total budget for fiscal year 2009, adjusted for
inflation in subsequent years by an amount not to
exceed an annual cost-of-living adjustment calculated
by applying the percentage increase, if any, in the
Consumer Price Index immediately prior to the date
the adjustment is due to take effect. Any remaining
money shall be collected by the department from each
licensed gaming entity and distributed in accordance
with paragraph (2) based upon the classification of
county where the licensed facility is located.
(C) If the municipality hosting a Category 3
licensed facility is a township of the second class
in a county of the fifth class which is contiguous to
a county of the seventh class, 2% of the gross
terminal revenue from the Category 3 licensed
facility located in the municipality shall be
distributed to the municipality, subject, however, to
the budgetary limitation in this clause. The amount
allocated to the designated municipalities shall not
exceed the lesser of $1,000,000 or 50% of their total
budget for fiscal year 2009, adjusted for inflation
in subsequent years by an amount not to exceed an
annual cost-of-living adjustment calculated by
applying the percentage change in the Consumer Price
Index immediately prior to the date the adjustment is
due to take effect. Any remaining money shall be
collected by the department from each licensed gaming
entity and distributed in equal amounts to each
municipality contiguous to the host municipality.
20170HB1301PN1599 - 34 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
However, the amount to be allocated to any contiguous
municipality shall not exceed the lesser of
$1,000,000 or 50% of the municipality's total budget
for fiscal year 2009, adjusted for inflation in
subsequent years by an amount not to exceed an annual
cost-of-living adjustment calculated by applying the
percentage change in the Consumer Price Index
immediately prior to the date the adjustment is due
to take effect. Any money remaining following
distribution to contiguous municipalities shall be
collected by the department and distributed in
accordance with paragraph (2) based upon the
classification of county where the licensed facility
is located.
(ix) Any municipality not specifically enumerated in
subparagraphs (i) through (viii), 2% of the gross
terminal revenue to the municipality hosting the licensed
facility from each such licensed facility.
(x) If the licensed facility is located in more than
one municipality, the amount available shall be
distributed on a pro rata basis determined by the
percentage of acreage located in each municipality to the
total acreage of all municipalities occupied by the
licensed facility.
(xi) If the licensed facility is located at a resort
which is also an incorporated municipality, such
municipality shall not be eligible to receive any
distribution under this paragraph. The distribution it
would have otherwise been entitled to under this
paragraph shall instead be distributed in accordance with
20170HB1301PN1599 - 35 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
paragraph (2) based upon the county where the licensed
facility is located.
(xii) The distributions provided in this paragraph
shall be based upon municipal classifications in effect
on the effective date of this section. For the purposes
of this paragraph, any reclassification of municipalities
as a result of a Federal decennial census or of a State
statute shall not apply to this paragraph.
(xiii) If any provision of this paragraph is found
to be unenforceable for any reason, the distribution
provided for in such unenforceable provision shall be
made to the municipality in which the licensed facility
is located.
(xiv) Nothing in this paragraph shall prevent any of
the above municipalities from entering into
intergovernmental cooperative agreements with other
jurisdictions for sharing this money.
(xv) Notwithstanding any other law, agreement or
provision in this part to the contrary, all revenues
provided, directed or earmarked under this section to or
for the benefit of a city of the second class in which an
intergovernmental cooperation authority has been
established and is in existence pursuant to the act of
February 12, 2004 (P.L.73, No.11), known as the
Intergovernmental Cooperation Authority Act for Cities of
the Second Class, shall be directed to and under the
exclusive control of such intergovernmental cooperation
authority to be used:
(A) to reduce the debt of the second class city;
(B) to increase the level of funding of the
20170HB1301PN1599 - 36 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
municipal pension funds of the second class city; or
(C) for any other purposes as determined to be
in the best interest of the second class city by such
intergovernmental cooperation authority. Such
revenues shall not be directed to or under the
control of such city of the second class or any
coordinator appointed pursuant to the act of July 10,
1987 (P.L.246, No.47), known as the Municipalities
Financial Recovery Act, for such city of the second
class.]
(4) From the local share assessment established in
subsection (b), make quarterly distributions among the
municipalities, including home rule municipalities, hosting a
licensed facility in accordance with the following schedule:
(i) Except as provided in subparagraph (ii) or
(iii), to a municipality of any class hosting a Category
3 facility, 2% of the gross terminal revenue from the
Category 3 licensed facility located in the municipality,
subject, however, to the budgetary limitation in this
subparagraph. The amount allocated to the designated
municipalities shall not exceed 50% of their total budget
for fiscal year 2009, adjusted for inflation in
subsequent years by an amount not to exceed an annual
cost-of-living adjustment calculated by applying the
percentage change in the Consumer Price Index immediately
prior to the date the adjustment is due to take effect.
Any remaining money shall be collected by the department
from each licensed gaming entity and distributed in
accordance with paragraph (2) based upon the
classification of county where the licensed facility is
20170HB1301PN1599 - 37 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
located.
(ii) If the municipality hosting a Category 3
licensed facility is a borough located in a county of the
third class and the borough is contiguous to a city of
the third class, 1% of gross terminal revenue shall be
distributed to the host borough and 1% of gross terminal
revenue shall be distributed to the city of the third
class that is contiguous to the host borough, subject,
however, to the budgetary limitation in this
subparagraph. The amount allocated to each designated
municipality shall not exceed 50% of its total budget for
fiscal year 2009, adjusted for inflation in subsequent
years by an amount not to exceed an annual cost-of-living
adjustment calculated by applying the percentage
increase, if any, in the Consumer Price Index immediately
prior to the date the adjustment is due to take effect.
Any remaining money shall be collected by the department
from each licensed gaming entity and distributed in
accordance with paragraph (2) based upon the
classification of county where the licensed facility is
located.
(iii) If the municipality hosting a Category 3
licensed facility is a township of the second class in a
county of the fifth class which is contiguous to a county
of the seventh class , 2% of the gross terminal revenue
from the Category 3 licensed facility located in the
municipality shall be distributed to the municipality,
subject, however, to the budgetary limitation in this
subparagraph. The amount allocated to the designated
municipalities shall not exceed the lesser of $1,000,000
20170HB1301PN1599 - 38 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
or 50% of their total budget for fiscal year 2009,
adjusted for inflation in subsequent years by an amount
not to exceed an annual cost-of-living adjustment
calculated by applying the percentage change in the
Consumer Price Index immediately prior to the date the
adjustment is due to take effect. Any remaining money
shall be collected by the department from each licensed
gaming entity and distributed in equal amounts to each
municipality contiguous to the host municipality. The
amount to be allocated to any contiguous municipality
shall not exceed the lesser of $1,000,000 or 50% of the
municipality's total budget for fiscal year 2009,
adjusted for inflation in subsequent years by an amount
not to exceed an annual cost-of-living adjustment
calculated by applying the percentage change in the
Consumer Price Index immediately prior to the date the
adjustment is due to take effect. Any money remaining
following distribution to contiguous municipalities shall
be collected by the department and distributed in
accordance with paragraph (2) based upon the
classification of county where the licensed facility is
located.
(5) From the slot machine operation fees deposited in
the fund under section 1326.1(d), make quarterly
distributions to any municipality not specifically enumerated
in paragraph (3) or (4) hosting a Category 1 licensed
facility or a Category 2 licensed facility, equal to
$10,000,000 annually.
(6) From the local share assessment established in
subsection (b), make quarterly distributions to any
20170HB1301PN1599 - 39 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
municipality not enumerated in paragraph (3) or (4) hosting a
Category 3 licensed facility: 2% of the gross terminal
revenue paid by each licensed gaming entity operating a
Category 3 licensed facility.
(7) If a licensed facility is located in more than one
municipality, the amount available shall be distributed on a
pro rata basis determined by the percentage of acreage
located in each municipality to the total acreage of all
municipalities occupied by the licensed facility.
(8) If a licensed facility is located at a resort which
is also an incorporated municipality, the municipality shall
not be eligible to receive any distribution under paragraph
(3), (4), (5) or (6). The distribution it would have
otherwise been entitled to under paragraph (3), (4), (5) or
(6) shall instead be distributed in accordance with paragraph
(2) based upon the classification of county where the
licensed facility is located.
(9) The distributions provided in paragraph (3), (4),
(5) or (6) shall be based upon municipal classifications in
effect on July 5, 2004. For the purposes of paragraphs (3),
(4), (5) and (6), any reclassification of municipalities as a
result of a Federal decennial census or of a State statute
shall not apply to paragraphs (3), (4), (5) and (6).
(10) If any provision of paragraph (3), (4), (5) or (6)
is found to be unenforceable for any reason, the distribution
provided for in the unenforceable provision shall be made to
the municipality in which the licensed facility is located.
(11) Nothing in paragraph (3), (4), (5) or (6) shall be
construed to prevent any of the above municipalities from
entering into intergovernmental cooperative agreements with
20170HB1301PN1599 - 40 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
other jurisdictions for sharing the funds distributed to
them.
(12) Notwithstanding any other law, agreement or
provision in this part to the contrary, all revenues
provided, directed or earmarked under this section to or for
the benefit of a city of the second class in which an
intergovernmental cooperation authority has been established
and is in existence under the act of February 12, 2004
(P.L.73, No.11), known as the Intergovernmental Cooperation
Authority Act for Cities of the Second Class, shall be
directed to and under the exclusive control of the
intergovernmental cooperation authority to be used:
(i) to reduce the debt of the city of the second
class;
(ii) to increase the level of funding of the
municipal pension funds of the city of the second class;
or
(iii) for any other purposes as determined to be in
the best interest of the city of the second class by the
intergovernmental cooperation authority. The revenues
shall not be directed to or under the control of the city
of the second class or any coordinator appointed under
the act of July 10, 1987 (P.L.246, No.47), known as the
Municipalities Financial Recovery Act, for the city of
the second class.
* * *
(e) Reporting.--
(1) In cooperation with the department and the
Commonwealth Financing Authority, the Department of Community
and Economic Development shall submit an annual report on all
20170HB1301PN1599 - 41 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
distributions of local share assessments and slot machine
license operation fees to counties and municipalities under
this section to the chairman and minority chairman of the
Appropriations Committee of the Senate, the chairman and
minority chairman of the Community, Economic and Recreational
Development Committee of the Senate, the chairman and
minority chairman of the Appropriations Committee of the
House of Representatives and the chairman and minority
chairman of the Gaming Oversight Committee of the House of
Representatives. The report shall be submitted by [August 31,
2010] March 31, 2018, and by [August] March 31 of each year
thereafter.
(2) All counties and municipalities receiving
distributions of local share assessments or slot machine
license operation fees under this section shall submit
information to the Department of Community and Economic
Development on a form prepared by the Department of Community
and Economic Development that sets forth the amount and use
of the funds received in the prior calendar year. The form
shall set forth whether the funds received were deposited in
the county's or municipality's General Fund or committed to a
specific project or use.
* * *
Section 8. Section 1518(a)(5) of Title 4 is amended to read:
§ 1518. Prohibited acts; penalties.
(a) Criminal offenses.--
* * *
(5) Except as provided for in section 1326 (relating to
[license] renewals), it shall be unlawful for a licensed
entity or other person to manufacture, supply, operate, carry
20170HB1301PN1599 - 42 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
on or expose for play any slot machine, table game, table
game device or associated equipment after the person's
license has expired and prior to the actual renewal of the
license.
* * *
Section 9. Licensed gaming entities required to make
payments under 4 Pa.C.S. § 1326.1 shall:
(1) receive a credit against payments due in calendar
year 2017 for any payments made up to the date the first
payment is due under paragraph (2) under the following:
(i) 4 Pa.C.S. § 1403(c)(3)(i), (ii), (iii), (iii.1),
(iv), (v), (vi) and (vii) and 4(i) and (ii), formerly (3)
(viii)(A) and (B), as those provisions were in existence
prior to the effective date of the amendment of 4 Pa.C.S.
§ 1403; or
(ii) any written agreement between a municipality
and a licensed gaming entity required to make payments
under 4 Pa.C.S. § 1326.1 entered into prior to the
effective date of this section that relates to the
payments required under 4 Pa.C.S. § 1403(c)(3)(i), (ii),
(iii), (iii.1), (iv), (v), (vi) and (vii) and 4(i) and
(ii), formerly (3)(viii)(A) and (B), as those provisions
existed prior to the effective date of the amendment of 4
Pa.C.S. § 1403; and
(2) commence the payments due under this section the
first day of the first calendar month following the effective
date of this section.
Section 10. This act shall take effect immediately.
20170HB1301PN1599 - 43 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28