1Amending the act of August 26, 1971 (P.L.351, No.91), entitled
2"An act providing for a State Lottery and administration
3thereof; authorizing the creation of a State Lottery
4Commission; prescribing its powers and duties; disposition of
5funds; violations and penalties therefor; exemption of prizes
6from State and local taxation and making an appropriation,"
7providing for special lottery sales, for a source of funds
8for repayment of bond indebtedness for mass transit purposes
9and for the Economic Development Fund for Mass Transit; and
10making an editorial change.

11The General Assembly of the Commonwealth of Pennsylvania
12hereby enacts as follows:

13Section 1. Section 301 of the act of August 26, 1971 
14(P.L.351, No.91), known as the State Lottery Law, amended
15November 21, 1996 (P.L.741, No.134), is amended to read:

16Section 301. Statement of purpose.

17This chapter is enacted to establish a lottery to be operated
18by the State, the net proceeds of which are to be used after
19June 30, 1972, for the purposes of providing property tax relief
20for the elderly for taxes paid in 1971 and thereafter to persons
2165 years of age or older and for providing certain free fixed

1route local transit services to persons 65 years of age or older
2and reduced fare on group ride transit service to persons 65
3years of age or older. It is further intended to provide a means
4through which to curb illegal gambling operations in
5Pennsylvania[.] and to provide a source of funds for the 
6repayment of indebtedness on bonds issued for mass transit 
7development by a government agency or authority.

8Section 2. The act is amended by adding a section to read:

9Section 304.1. Special lottery sales.

10(a) Special lotteries.--The secretary shall conduct annually
11at least 12 lotteries for the purpose of providing a source of
12funds for the repayment of indebtedness on bonds issued for the
13development of mass transit as economic development projects by
14a government agency or authority. For lotteries conducted for
15this purpose, the price of each ticket or share shall be $5.00.

16(b) Identification of special lotteries.--In all advertising
17and on tickets, the secretary shall identify any lottery under
18this section as being conducted for the benefit of the name and
19location of the project.

20(c) Deposit of revenues.--Notwithstanding the provisions of
21section 303(a)(11), the secretary shall deposit all revenues
22received under this section, following the payment of prizes to
23holders of winning tickets or shares and the payment of costs
24incurred in the operation and administration of the lottery,
25including the expenses of the division and the costs resulting
26from any contract or contracts entered into for promotional,
27advertising or operational services or for the purchase or lease
28of lottery equipment and materials in the special fund in the
29State Treasury, to be known as the Economic Development Fund for
30Mass Transit. Moneys in the Economic Development Fund for Mass

1Transit shall be used solely for the purposes described under
2subsection (a).

3(d) Unclaimed prize money.--Unclaimed prize money on a
4winning lottery ticket or share sold under this section shall be
5retained by the secretary for payment to the person entitled
6thereto for one year after the drawing in which the prize was
7won. If no claim is made within such period, the prize money
8shall be paid into the Economic Development Fund for Mass
9Transit and used for purposes provided under this section.

10Section 3. Sections 311, 313 and 314 of the act, amended
11November 21, 1996 (P.L.741, No.134), are amended to read:

12Section 311. Disposition of funds.

13(a) State Lottery Fund.--[All] Except as provided in section 
14304.1, moneys received from the operation of the State lottery
15shall be deposited in a State Lottery Fund which is hereby
16created. Such moneys shall be used to the extent necessary for
17the payment of lottery prizes but the amount so used shall not
18be less than 40% of the amount of which tickets or shares have
19been sold. All payments of lottery prizes and for expenses of
20operation of the lottery shall be made as provided by law. All
21moneys remaining after payment of prizes and operating expenses
22shall remain in the State Lottery Fund and shall be allocated
23for the purpose of providing property tax relief for the elderly
24for taxes paid in 1971 and thereafter pursuant to the provisions
25of [the act of March 11, 1971 (P.L.104, No.3), known as the
26Senior Citizens Rebate and Assistance Act] Chapter 13 of the act 
27of June 27, 2006 (1st Sp.Sess., P.L.1873, No.1), known as the 
28Taxpayer Relief Act, and for the purpose of providing free or
29reduced fare transit service for the elderly pursuant to Chapter
309 and the act of February 11, 1976 (P.L.14, No.10), known as the

1Pennsylvania Rural and Intercity Common Carrier Surface
2Transportation Assistance Act. In the event sufficient funds are
3not available from the lottery receipts to meet the requirements
4of the Senior Citizens Rebate and Assistance Act or for
5providing free or reduced fare transit service for the elderly
6under Chapter 9 and the Pennsylvania Rural and Intercity Common
7Carrier Surface Transportation Assistance Act, additional funds
8to fulfill these obligations shall be appropriated from the
9General Fund for this purpose.

10(b) Appropriations.--The moneys in said State Lottery Fund
11shall be appropriated only:

12(1) For the payment of prizes to the holders of winning
13lottery tickets or shares.

14(2) For the expenses of the division in its operation of
15the lottery.

16(3) For property tax relief and free or reduced fare
17transit service for the elderly as provided under subsection
18(a).

19Section 313. Unclaimed prize money.

20[Unclaimed] Except as provided in section 304.1, unclaimed
21prize money on a winning lottery ticket or share shall be
22retained by the secretary for payment to the person entitled
23thereto for one year after the drawing in which the prize was
24won. If no claim is made within such period, the prize money
25shall be paid into the State Lottery Fund and used for purposes
26as otherwise herein provided.

27Section 314. Deposits and transactions.

28The secretary may, in his discretion, require any or all
29lottery sales agents to deposit to the credit of the State
30Lottery Fund or, where applicable, the Economic Development Fund 

1for Mass Transit, in banks, designated by the State Treasurer,
2all moneys received by such agents from the sale of lottery
3tickets or shares, less the amount, if any, retained as
4compensation for the sale of the tickets or shares, and to file
5with the secretary or his designated agents reports of their
6receipts and transactions in the sale of lottery tickets in such
7form and containing such information as he may require. The
8secretary may make such arrangements for any person, including a
9bank, to perform such functions, activities or services in
10connection with the operation of the lottery as he may deem
11advisable pursuant to this chapter and the rules and regulations
12of the department, and such functions, activities or services
13shall constitute lawful functions, activities and services of 
14such person.

15Section 4. This act shall take effect in 60 days.