PRINTER'S NO. 4455
No. 2881 Session of 2004
INTRODUCED BY R. MILLER, ARMSTRONG, BASTIAN, BOYD, CAPPELLI,
CLYMER, CRAHALLA, DENLINGER, FAIRCHILD, GABIG, GEIST,
GILLESPIE, GRUCELA, HARRIS, HENNESSEY, MACKERETH, NICKOL,
PHILLIPS, PICKETT, RUBLEY, SCAVELLO, STERN, R. STEVENSON AND
TIGUE, OCTOBER 4, 2004
REFERRED TO COMMITTEE ON TOURISM AND RECREATIONAL DEVELOPMENT,
OCTOBER 4, 2004
AN ACT
1 Amending Title 4 (Amusements) of the Pennsylvania Consolidated
2 Statutes, further providing for establishment of State Gaming
3 Fund and net slot machine revenue distribution and for
4 transfers from State Gaming Fund.
5 The General Assembly of the Commonwealth of Pennsylvania
6 hereby enacts as follows:
7 Section 1. Sections 1403 and 1408(e) of the Title 4 of the
8 Pennsylvania Consolidated Statutes, added July 5, 2004 (P.L.572,
9 No.71), are amended to read:
10 § 1403. Establishment of State Gaming Fund and net slot machine
11 revenue distribution.
12 (a) Fund established.--There is hereby established the State
13 Gaming Fund within the State Treasury.
14 (b) Slot machine tax.--The department shall determine and
15 each slot machine licensee shall pay a daily tax of 34% and a
16 local share assessment of 4% of its daily gross terminal revenue
17 from the slot machines in operation at its facility into the
1 fund.
2 (c) Transfers and distributions.--[The] Subject to the
3 provisions of subsection (d), the department shall:
4 (1) Transfer the slot machine tax and assessment imposed
5 in subsection (b) to the fund.
6 (2) From the local share assessment established in
7 subsection (b) make quarterly distributions among the
8 counties hosting a licensed facility in accordance with the
9 following schedule:
10 (i) If the licensed facility is a Category 1
11 licensed facility that is located at a harness racetrack
12 and the county, including a home rule county, in which
13 the licensed facility is located is:
14 (A) A county of the first class: 4% of the
15 gross terminal revenue to the county hosting the
16 licensed facility from each such licensed facility.
17 Notwithstanding any other provision to the contrary,
18 funds from licensed gaming entities located within a
19 county of the first class shall not be distributed
20 outside of a county of the first class.
21 (B) A county of the second class: 2% of the
22 gross terminal revenue to the county hosting the
23 licensed facility from each such licensed facility.
24 (C) A county of the second class A: 1% of the
25 gross terminal revenue to the county hosting the
26 licensed facility from each such licensed facility.
27 An additional 1% of the gross terminal revenue to the
28 county hosting the licensed facility from each such
29 licensed facility for the purpose of municipal grants
30 within the county in which the licensee is located.
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1 (D) A county of the third class: 2% of the
2 gross terminal revenue from each such licensed
3 facility shall be deposited into a restricted account
4 established in the Department of Community and
5 Economic Development to be used exclusively for
6 grants for health, safety and economic development
7 projects to municipalities within the county where
8 the licensed facility is located. Municipalities that
9 are contiguous to the municipality hosting such
10 licensed facility shall be given priority by the
11 Department of Community and Economic Development in
12 the award of such grants.
13 (E) A county of the fourth class: 2% of the
14 gross terminal revenue from each such licensed
15 facility shall be deposited into a restricted account
16 established in the Department of Community and
17 Economic Development to be used exclusively for
18 grants to the county, to economic development
19 authorities or organizations within the county or
20 redevelopment authorities within the county for
21 grants for economic development projects, job
22 training, community improvement projects, other
23 projects in the public interest and reasonable
24 administrative costs. Notwithstanding the provisions
25 of the act of February 9, 1999 (P.L.1, No.1), known
26 as the Capital Facilities Debt Enabling Act, grants
27 made under this clause may be utilized as local
28 matching funds for other grants or loans from the
29 Commonwealth.
30 (F) Counties of the fifth through eighth
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1 classes: 2% of the gross terminal revenue from each
2 such licensed facility shall be deposited into a
3 restricted account established in the Department of
4 Community and Economic Development to be used
5 exclusively for grants to the county.
6 (G) Any county not specifically enumerated in
7 clauses (A) through (F), 2% of the gross terminal
8 revenue to the county hosting the licensed facility
9 from each such licensed facility.
10 (ii) If the licensed facility is a Category 1
11 licensed facility and is located at a thoroughbred
12 racetrack and the county in which the licensed facility
13 is located is:
14 (A) A county of the first class: 4% of the
15 gross terminal revenue to the county hosting the
16 licensed facility from each such licensed facility.
17 Notwithstanding any other provision to the contrary,
18 funds from licensed gaming entities located within
19 the county of the first class shall not be
20 distributed outside of a County of the first class.
21 (B) A county of the second class: 2% of the
22 gross terminal revenue to the county hosting the
23 licensed facility from each such licensed facility.
24 (C) A county of the second class A: 1% of the
25 gross terminal revenue to the county hosting the
26 licensed facility from each such licensed facility.
27 An additional 1% of the gross terminal revenue to the
28 county hosting the licensed facility from each such
29 licensed facility for the purpose of municipal grants
30 within the county in which the licensee is located.
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1 (D) A county of the third class: 1% of the
2 gross terminal revenue to the county hosting the
3 licensed facility from each such licensed facility.
4 An additional 1% of the gross terminal revenue to the
5 county hosting the licensed facility from each such
6 licensed facility for the purpose of municipal grants
7 within the county in which the licensee is located.
8 (E) A county of the fourth class: 2% of the
9 gross terminal revenue from each such licensed
10 facility shall be deposited into a restricted account
11 established in the Department of Community and
12 Economic Development to be used exclusively for
13 grants to the county, to economic development
14 authorities or organizations within the county or
15 redevelopment authorities within the county for
16 grants for economic development projects, community
17 improvement projects, job training, other projects in
18 the public interest and reasonable administrative
19 costs. Notwithstanding the Capital Facilities Debt
20 Enabling Act, grants made under this clause may be
21 utilized as local matching funds for other grants or
22 loans from the Commonwealth.
23 (F) Counties of the fifth through eighth
24 classes: 2% of the gross terminal revenue from each
25 such licensed facility shall be deposited into a
26 restricted account established in the Department of
27 Community and Economic Development to be used
28 exclusively for grants to the county.
29 (G) Any county not specifically enumerated in
30 clauses (A) through (F), 2% of the gross terminal
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1 revenue to the county hosting the licensed facility
2 from each such licensed facility.
3 (iii) If the facility is a Category 2 licensed
4 facility and if the county in which the licensed facility
5 is located is:
6 (A) A county of the first class: 4% of the
7 gross terminal revenue to the county hosting the
8 licensed facility from each such licensed facility.
9 Notwithstanding any other provision to the contrary,
10 funds from licensed gaming entities located within
11 the county of the first class shall not be
12 distributed outside of a County of the first class.
13 (B) A county of the second class: 2% of the
14 gross terminal revenue to the county hosting the
15 licensed facility from each such licensed facility.
16 (C) A county of the second class A: 1% of the
17 gross terminal revenue to the county hosting the
18 licensed facility from each such licensed facility.
19 An additional 1% of the gross terminal revenue to the
20 county hosting the licensed facility from each such
21 licensed facility for the purpose of municipal grants
22 within the county in which the licensee is located.
23 (D) A county of the third class: 1% of the
24 gross terminal revenue to the county hosting the
25 licensed facility from each such licensed facility.
26 An additional 1% of the gross terminal revenue to the
27 county hosting the licensed facility from each such
28 licensed facility for the purpose of municipal grants
29 within the county in which the licensee is located.
30 (E) A county of the fourth class: 2% of the
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1 gross terminal revenue from each such licensed
2 facility shall be deposited into a restricted account
3 established in the Department of Community and
4 Economic Development to be used exclusively for
5 grants to the county, to economic development
6 authorities or organizations within the county or
7 redevelopment authorities within the county for
8 grants for economic development projects, community
9 improvement projects, job training, other projects in
10 the public interest and reasonable administrative
11 costs. Notwithstanding the Capital Facilities Debt
12 Enabling Act, grants made under this clause may be
13 utilized as local matching funds for other grants or
14 loans from the Commonwealth.
15 (F) Counties of the fifth through eighth
16 classes: 2% of the gross terminal revenue from each
17 such licensed facility shall be deposited into a
18 restricted account established in the Department of
19 Community and Economic Development to be used
20 exclusively for grants to the county, to contiguous
21 counties, to economic development authorities or
22 organizations within the county or contiguous
23 counties or redevelopment authorities within the
24 county or contiguous counties for grants for economic
25 development projects, community improvement projects,
26 other projects in the public interest and reasonable
27 administrative costs. Notwithstanding the Capital
28 Facilities Debt Enabling Act, grants made under this
29 clause may be utilized as local matching funds for
30 other grants or loans from the Commonwealth.
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1 (G) Any county not specifically enumerated in
2 clauses (A) through (F), 2% of the gross terminal
3 revenue to the county hosting the licensed facility
4 from each such licensed facility.
5 (iv) If the facility is a Category 3 licensed
6 facility, 2% of the gross terminal revenue from each such
7 licensed facility shall be deposited into a restricted
8 account established in the Department of Community and
9 Economic Development to be used exclusively for grants to
10 the county, to economic development authorities or
11 organizations within the county or redevelopment
12 authorities within the county for grants for economic
13 development projects and community improvement projects.
14 (v) Unless otherwise specified, for the purposes of
15 this paragraph money designated for municipal grants
16 within a county, other than a county of the first class,
17 in which a licensed facility is located shall be used to
18 fund grants to the municipality in which the licensed
19 facility is located, to the county in which the licensed
20 facility is located and to the municipalities which are
21 contiguous to the municipality in which the licensed
22 facility is located and which are located within the
23 county in which the licensed facility is located. Grants
24 shall be administered by the county through its economic
25 development or redevelopment authority in which the
26 licensed facility is located. Grants shall be used to
27 fund the costs of human services, infrastructure
28 improvements, facilities, emergency services, health and
29 public safety expenses associated with licensed facility
30 operations. If at the end of a fiscal year uncommitted
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1 funds exist, the county shall pay to the economic
2 development or redevelopment authority of the county in
3 which the licensed facility is located the uncommitted
4 funds.
5 (vi) If the licensed facility is located in more
6 than one county, the amount available shall be
7 distributed on a pro rata basis determined by the
8 percentage of acreage located in each county to the total
9 acreage of all counties occupied by the licensed
10 facility.
11 (vii) The distributions provided in this paragraph
12 shall be based upon county classifications in effect on
13 the effective date of this section. Any reclassification
14 of counties as a result of a Federal decennial census or
15 of a State statute shall not apply to this subparagraph.
16 (viii) If any provision of this paragraph is found
17 to be unenforceable for any reason, the distribution
18 provided for in the unenforceable provision shall be made
19 to the county in which the licensed facility is located
20 for the purposes of grants to municipalities in that
21 county, including municipal grants as specified in
22 subparagraph (v).
23 (ix) Nothing in this paragraph shall prevent any of
24 the above counties from entering into intergovernmental
25 cooperative agreements with other jurisdictions for
26 sharing these money.
27 (3) From the local share assessment established in
28 subsection (b), make quarterly distributions among the
29 municipalities, including home rule municipalities, hosting a
30 licensed facility in accordance with the following schedule:
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1 (i) To a city of the second class hosting a licensed
2 facility or facilities, other than a Category 3 licensed
3 facility, 2% of the gross terminal revenue or $10,000,000
4 annually, whichever is greater, of all licensed
5 facilities located in that city. In the event that the
6 revenues generated by the 2% do not meet the $10,000,000
7 minimum specified in this paragraph, the licensed gaming
8 entity operating the licensed facility or facilities in
9 the city shall remit the difference to the municipality.
10 (ii) To a city of the second class A hosting a
11 licensed facility or facilities, other than a Category 3
12 licensed facility, 2% of the gross terminal revenue or
13 $10,000,000 annually, whichever is greater, of all
14 licensed facilities located in that city subject,
15 however, to the budgetary limitation in this
16 subparagraph. The amount allocated to the designated
17 municipalities shall not exceed 50% of their total budget
18 for fiscal year 2003-2004, adjusted for inflation in
19 subsequent years by an amount not to exceed an annual
20 cost-of-living adjustment calculated by applying the
21 percentage change in the Consumer Price Index for All
22 Urban Consumers for the Pennsylvania, New Jersey,
23 Delaware and Maryland area, for the most recent 12-month
24 period for which figures have been officially reported by
25 the United States Department of Labor, Bureau of Labor
26 Statistics, immediately prior to the date the adjustment
27 is due to take effect. Any remaining moneys shall be
28 distributed in accordance with paragraph (2) based upon
29 the county where the licensed facility or facilities is
30 located. In the event that the revenues generated by the
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1 2% do not meet the $10,000,000 minimum specified in this
2 subparagraph, the licensed gaming entity operating the
3 licensed facility or facilities in the city shall remit
4 the difference to the municipality.
5 (iii) To a city of the third class hosting a
6 licensed facility or facilities, other than a Category 3
7 licensed facility, 2% of the gross terminal revenue or
8 $10,000,000 annually, whichever is greater, of all
9 licensed facilities located in that city subject,
10 however, to the budgetary limitation in this
11 subparagraph. However, the foregoing limitations shall
12 not apply, notwithstanding any provision to the contrary,
13 if the licensed facility or facilities have executed a
14 written agreement with the city prior to the effective
15 date of this part to provide additional compensation to
16 the city in excess of the difference between 2% of the
17 gross terminal revenue and $10,000,000. The amount
18 allocated to the designated municipalities shall not
19 exceed 50% of their total budget for fiscal year 2003-
20 2004, adjusted for inflation in subsequent years by an
21 amount not to exceed an annual cost-of-living adjustment
22 calculated by applying the percentage change in the
23 Consumer Price Index for All Urban Consumers for the
24 Pennsylvania, New Jersey, Delaware and Maryland area, for
25 the most recent 12-month period for which figures have
26 been officially reported by the United States Department
27 of Labor, Bureau of Labor Statistics, immediately prior
28 to the date the adjustment is due to take effect. Any
29 remaining moneys shall be distributed in accordance with
30 paragraph (2) based upon the county where the licensed
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1 facility or facilities is located. In the event that the
2 revenues generated by the 2% do not meet the $10,000,000
3 minimum specified in this subparagraph, the licensed
4 gaming entity operating the licensed facility or
5 facilities in the city shall remit the difference to the
6 municipality.
7 (iv) To a township of the first class hosting a
8 licensed facility or facilities, other than a Category 3
9 licensed facility, 2% of the gross terminal revenue or
10 $10,000,000 annually, whichever is greater, of all
11 licensed facilities located in the township subject,
12 however, to the budgetary limitation in this
13 subparagraph. The amount allocated to the designated
14 municipalities shall not exceed 50% of their total budget
15 for fiscal year 2003-2004, adjusted for inflation in
16 subsequent years by an amount not to exceed an annual
17 cost-of-living adjustment calculated by applying the
18 percentage change in the Consumer Price Index for All
19 Urban Consumers for the Pennsylvania, New Jersey,
20 Delaware and Maryland area, for the most recent 12-month
21 period for which figures have been officially reported by
22 the United States Department of Labor, Bureau of Labor
23 Statistics, immediately prior to the date the adjustment
24 is due to take effect. Any remaining money shall be
25 distributed in accordance with paragraph (2) based upon
26 the county where the licensed facility or facilities is
27 located. In the event that the revenues generated by the
28 2% do not meet the $10,000,000 minimum specified in this
29 subparagraph, the licensed gaming entity operating the
30 licensed facility or facilities in the township shall
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1 remit the difference to the municipality.
2 (v) To a township of the second class hosting a
3 licensed facility or facilities, other than a Category 3
4 licensed facility, 2% of the gross terminal revenue or
5 $10,000,000 annually, whichever is greater, of all
6 licensed facilities located in the township subject,
7 however, to the budgetary limitation in this
8 subparagraph. The amount allocated to the designated
9 municipalities shall not exceed 50% of their total budget
10 for fiscal year 2003-2004, adjusted for inflation in
11 subsequent years by an amount not to exceed an annual
12 cost-of-living adjustment calculated by applying the
13 percentage change in the Consumer Price Index for All
14 Urban Consumers for the Pennsylvania, New Jersey,
15 Delaware and Maryland area, for the most recent 12-month
16 period for which figures have been officially reported by
17 the United States Department of Labor, Bureau of Labor
18 Statistics, immediately prior to the date the adjustment
19 is due to take effect. Any remaining money shall be
20 distributed in accordance with paragraph (2) based upon
21 the county where the licensed facility or facilities is
22 located. In the event that the revenues generated by the
23 2% do not meet the $10,000,000 minimum specified in this
24 subparagraph, the licensed gaming entity operating the
25 licensed facility or facilities in the township shall
26 remit the difference to the municipality.
27 (vi) To a borough hosting a licensed facility or
28 facilities, other than a Category 3 licensed facility, 2%
29 of the gross terminal revenue or $10,000,000 annually,
30 whichever is greater, of all licensed facilities located
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1 in that borough subject, however, to the budgetary
2 limitation in this subparagraph. The amount allocated to
3 the designated municipalities shall not exceed 50% of
4 their total budget for fiscal year 2003-2004, adjusted
5 for inflation in subsequent years by an amount not to
6 exceed an annual cost-of-living adjustment calculated by
7 applying the percentage change in the Consumer Price
8 Index for All Urban Consumers for the Pennsylvania, New
9 Jersey, Delaware and Maryland area, for the most recent
10 12-month period for which figures have been officially
11 reported by the United States Department of Labor, Bureau
12 of Labor Statistics, immediately prior to the date the
13 adjustment is due to take effect. Any remaining money
14 shall be distributed in accordance with paragraph (2)
15 based upon the county where the licensed facility or
16 facilities is located. In the event that the revenues
17 generated by the 2% do not meet the $10,000,000 minimum
18 specified in this subparagraph, the licensed gaming
19 entity operating the licensed facility or facilities in
20 the borough shall remit the difference to the
21 municipality.
22 (vii) To an incorporated town hosting a licensed
23 facility or facilities, other than a Category 3 licensed
24 facility, 2% of the gross terminal revenue or $10,000,000
25 annually, whichever is greater, of all licensed
26 facilities located in the town subject, however, to the
27 budgetary limitation in this subparagraph. The amount
28 allocated to the designated municipalities shall not
29 exceed 50% of their total budget for fiscal year 2003-
30 2004, adjusted for inflation in subsequent years by an
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1 amount not to exceed an annual cost-of-living adjustment
2 calculated by applying the percentage change in the
3 Consumer Price Index for All Urban Consumers for the
4 Pennsylvania, New Jersey, Delaware and Maryland area, for
5 the most recent 12-month period for which figures have
6 been officially reported by the United States Department
7 of Labor, Bureau of Labor Statistics, immediately prior
8 to the date the adjustment is due to take effect. Any
9 remaining money shall be distributed in accordance with
10 paragraph (2) based upon the county where the licensed
11 facility or facilities is located. In the event that the
12 revenues generated by the 2% do not meet the $10,000,000
13 minimum specified in this subparagraph, the licensed
14 gaming entity operating the licensed facility or
15 facilities in the town shall remit the difference to the
16 municipality.
17 (viii) To a municipality of any class hosting a
18 Category 3 facility, 2% of the gross terminal revenue
19 from the Category 3 licensed facility located in the
20 municipality subject, however, to the budgetary
21 limitation in this subparagraph. The amount allocated to
22 the designated municipalities shall not exceed 50% of
23 their total budget for fiscal year 2003-2004, adjusted
24 for inflation in subsequent years by an amount not to
25 exceed an annual cost-of-living adjustment calculated by
26 applying the percentage change in the Consumer Price
27 Index for All Urban Consumers for the Pennsylvania, New
28 Jersey, Delaware and Maryland area, for the most recent
29 12-month period for which figures have been officially
30 reported by the United States Department of Labor, Bureau
20040H2881B4455 - 15 -
1 of Labor Statistics, immediately prior to the date the
2 adjustment is due to take effect. Any remaining money
3 shall be distributed in accordance with paragraph (2)
4 based upon the county where the licensed facility or
5 facilities is located.
6 (ix) Any municipality not specifically enumerated
7 in subparagraphs (i) through (viii), 2% of the gross
8 terminal revenue to the municipality hosting the licensed
9 facility from each such licensed facility.
10 (x) If the licensed facility is located in more than
11 one municipality, the amount available shall be
12 distributed on a pro rata basis determined by the
13 percentage of acreage located in each municipality to the
14 total acreage of all municipalities occupied by the
15 licensed facility.
16 (xi) If the licensed facility is located at a resort
17 which is also an incorporated municipality, such
18 municipality shall not be eligible to receive any
19 distribution under this paragraph. The distribution it
20 would have otherwise been entitled to under this
21 paragraph shall instead be distributed in accordance with
22 paragraph (2) based upon the county where the licensed
23 facility is located.
24 (xii) The distributions provided in this paragraph
25 shall be based upon municipal classifications in effect
26 on the effective date of this section. For the purposes
27 of this paragraph, any reclassification of municipalities
28 as a result of a Federal decennial census or of a State
29 statute shall not apply to this paragraph.
30 (xiii) If any provision of this paragraph is found
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1 to be unenforceable for any reason, the distribution
2 provided for in such unenforceable provision shall be
3 made to the municipality in which the licensed facility
4 is located.
5 (xiv) Nothing in this paragraph shall prevent any of
6 the above municipalities from entering into
7 intergovernmental cooperative agreements with other
8 jurisdictions for sharing this money.
9 (xv) Notwithstanding any other law, agreement or
10 provision in this part to the contrary, all revenues
11 provided, directed or earmarked under this section to or
12 for the benefit of a city of the second class in which an
13 intergovernmental cooperation authority has been
14 established and is in existence pursuant to the act of
15 February 12, 2004 (P.L.73, No.11), known as the
16 Intergovernmental Cooperation Authority Act for Cities of
17 the Second Class, shall be directed to and under the
18 exclusive control of such intergovernmental cooperation
19 authority to be used:
20 (A) to reduce the debt of the second class city;
21 (B) to increase the level of funding of the
22 municipal pension funds of the second class city; or
23 (C) for any other purposes as determined to be
24 in the best interest of the second class city by such
25 intergovernmental cooperation authority. Such
26 revenues shall not be directed to or under the
27 control of such city of the second class or any
28 coordinator appointed pursuant to the act of July 10,
29 1987 (P.L.246, No.47), known as the Municipalities
30 Financial Recovery Act, for such city of the second
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1 class.
2 (d) Priority transfer for preservation of funding level for
3 State Lottery Fund.--
4 (1) Prior to making any transfer or distribution under
5 this section or section 1408 (relating to transfers from
6 State Gaming Fund), the department shall annually determine
7 the balance in the State Lottery Fund after payment, under
8 section 311 of the act of August 26, 1971 (P.L.351, No.91),
9 known as the State Lottery Law, of lottery prizes and
10 operating expenses of the department relating thereto for the
11 prior fiscal year and shall make the transfer under paragraph
12 (2), if applicable.
13 (2) If such balance is less than the balance from the
14 prior fiscal year determined in the same manner, the
15 department shall transfer an amount equal to the difference
16 between the balances from the State Gaming Fund to the State
17 Lottery Fund.
18 § 1408. Transfers from State Gaming Fund.
19 * * *
20 (e) Transfer to Property Tax Relief Fund.--[Monthly]
21 Annually, the State Treasurer shall transfer the remaining
22 balance in the State Gaming Fund which is not otherwise
23 transferred under section 1403(d) (relating to establishment of
24 State Gaming Fund and net slot machine revenue distribution) and
25 allocated in subsections (a), (b), (c) and (d) to the Property
26 Tax Relief Fund established in section 1409 (relating to
27 Property Tax Relief Fund).
28 Section 2. This act shall take effect in 60 days.
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