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,"
7further providing for statement of purpose, for powers and
8duties of secretary and for disposition of funds; and
9providing for instant lottery game to benefit veterans.

10The General Assembly of the Commonwealth of Pennsylvania
11hereby enacts as follows:

12Section 1. Section 301 of the act of August 26, 1971
13(P.L.351, No.91), known as the State Lottery Law, amended
14November 21, 1996 (P.L.741, No.134), is amended to read:

15Section 301. Statement of purpose.

16This chapter is enacted to establish a lottery to be operated
17by the State, the net proceeds of which are to be used after
18June 30, 1972, for the purposes of providing property tax relief
19for the elderly for taxes paid in 1971 and thereafter to persons
2065 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 and for establishing an instant lottery 
4game to benefit veterans. It is further intended to provide a
5means through which to curb illegal gambling operations in
6Pennsylvania.

7Section 2. Section 303(a)(11) of the act, amended June 30,
82011 (P.L.110, No.23), is amended to read:

9Section 303. Powers and duties of secretary.

10(a) Powers and duties enumerated.--In addition to the powers
11and duties provided by law and the act of April 9, 1929 
12(P.L.177, No.175), known as The Administrative Code of 1929, the
13secretary shall have the power and it shall be his duty to
14operate and administer the lottery, and to promulgate rules and
15regulations governing the establishment and operation thereof,
16including, but not limited to:

17* * *

18(11) The apportionment of the total revenues accruing
19from the sale of lottery tickets or shares and from all other
20sources among:

21(i) [the] The payment of prizes to the holders of
22winning tickets or shares[;].

23(ii) [the] The payment of costs incurred in the
24operation and administration of the lottery, including
25the expenses of the division and the costs resulting from
26any contract or contracts entered into for promotional,
27advertising or operational services or for the purchase
28or lease of lottery equipment and materials[; and].

29(iv) [for] For property tax relief and free or
30reduced fare transit service for the elderly as provided

1in section 311. For fiscal years beginning before July 1, 
22015, no less than 27% of the total revenues accruing 
3from the sale of lottery tickets or shares shall be 
4dedicated to this subparagraph. For fiscal years 
5beginning after June 30, 2015, no less than 30% of the
6total revenues accruing from the sale of lottery tickets
7or shares shall be dedicated to this subparagraph.

8(v) The payment to the Veterans' Trust Fund for
9veterans outreach services and benefit programs as
10provided in section 316. All proceeds accruing from the
11sale of instant lottery games under section 316, after
12the payment of prizes and operational and administrative
13costs, shall be dedicated to this subparagraph.

14* * *

15Section 3. Section 311 of the act, amended November 21, 1996
16(P.L.741, No.134), is amended to read:

17Section 311. Disposition of funds.

18(a) State Lottery Fund.--All moneys received from the
19operation of the State lottery shall be deposited in a State
20Lottery Fund which is hereby created. Such moneys shall be used
21to the extent necessary for the payment of lottery prizes but
22the amount so used shall not be less than 40% of the amount of
23which tickets or shares have been sold. All payments of lottery
24prizes and for expenses of operation of the lottery shall be
25made as provided by law. All moneys remaining after payment of
26prizes and operating expenses shall remain in the State Lottery
27Fund and shall be allocated for the purpose of providing
28property tax relief for the elderly for taxes paid in 1971 and
29thereafter pursuant to [the provisions of the act of March 11,
301971 (P.L.104, No.3), known as the Senior Citizens Rebate and

1Assistance Act] Chapter 13 of the act of June 27, 2006 (1st 
2Sp.Sess., P.L.1873, No.1), known as the Taxpayer Relief Act, and
3for the purpose of providing free or reduced fare transit
4service for the elderly pursuant to Chapter 9 and the act of
5February 11, 1976 (P.L.14, No.10), known as the Pennsylvania
6Rural and Intercity Common Carrier Surface Transportation
7Assistance Act and for veterans outreach services and benefit 
8programs as provided in section 316. In the event sufficient
9funds are not available from the lottery receipts to meet the
10requirements of the Senior Citizens Rebate and Assistance Act or
11for providing free or reduced fare transit service for the
12elderly under Chapter 9 and the Pennsylvania Rural and Intercity
13Common Carrier Surface Transportation Assistance Act or for 
14veterans outreach services and benefit programs as provided in 
15section 316, additional funds to fulfill these obligations shall
16be appropriated from the General Fund for this purpose.

17(b) Appropriations.--The moneys in said State Lottery Fund
18shall be appropriated only:

19(1) For the payment of prizes to the holders of winning
20lottery tickets or shares.

21(2) For the expenses of the division in its operation of
22the lottery.

23(3) For property tax relief and free or reduced fare
24transit service for the elderly as provided under subsection
25(a).

26(4) To the Veterans' Trust Fund for veterans outreach
27services and benefit programs as provided in section 316.

28Section 4. The act is amended by adding a section to read:

29Section 316. Instant lottery game to benefit veterans.

30(a) General rule.--The secretary shall operate an instant

1lottery game to benefit veterans of the armed forces of the
2United States who reside in this Commonwealth. The game tickets
3must clearly state that the game proceeds are used to benefit
4veterans in this Commonwealth.

5(b) Advertisement.--The secretary shall market and advertise
6the instant lottery game operated under this section to inform
7the public that the game tickets are available for purchase and
8that the game proceeds will be used to fund veterans' outreach
9services and benefit programs in this Commonwealth. The
10secretary shall change the design or theme of the game regularly
11to ensure that the game remains competitive with other instant
12lottery games offered by the State lottery.

13(c) Transfer of funds.--On April 30th of each year the
14secretary shall transfer all proceeds from the sale of the
15instant lottery game tickets as provided under section 303(a)
16(11)(v) to the Veterans' Trust Fund for purposes specified in 51
17Pa.C.S. § 1721(c) (relating to veterans' trust fund).

18Section 5. This act shall take effect in 180 days.