PRINTER'S NO. 457
No. 437 Session of 1999
INTRODUCED BY READSHAW, LAUGHLIN, GIGLIOTTI, WOJNAROSKI, KAISER,
PRESTON, VAN HORNE, TRELLO, SAINATO, WALKO, HALUSKA,
ROBINSON, COLAFELLA AND WILT, FEBRUARY 9, 1999
REFERRED TO COMMITTEE ON FINANCE, FEBRUARY 9, 1999
AN ACT
1 Amending the act of August 26, 1971 (P.L.351, No.91), entitled
2 "An act providing for a State Lottery and administration
3 thereof; authorizing the creation of a State Lottery
4 Commission; prescribing its powers and duties; disposition of
5 funds; violations and penalties therefor; exemption of prizes
6 from State and local taxation and making an appropriation,"
7 providing for special economic development projects; and
8 establishing the Economic Development Fund.
9 The General Assembly of the Commonwealth of Pennsylvania
10 hereby enacts as follows:
11 Section 1. Section 301 of the act of August 26, 1971
12 (P.L.351, No.91), known as the State Lottery Law, amended
13 November 21, 1996 (P.L.741, No.134), is amended to read:
14 Section 301. Statement of purpose.
15 This chapter is enacted to establish a lottery to be operated
16 by the State, the net proceeds of which are to be used after
17 June 30, 1972, for the purposes of providing property tax relief
18 for the elderly for taxes paid in 1971 and thereafter to persons
19 65 years of age or older and for providing certain free fixed
20 route local transit services to persons 65 years of age or older
1 and reduced fare on group ride transit service to persons 65
2 years of age or older. It is further intended to provide a means
3 through which to curb illegal gambling operations in
4 Pennsylvania[.] and to provide a source of funds for the
5 repayment of indebtedness on bonds issued for the construction
6 of sports arenas, stadia, convention centers and other large-
7 scale facilities undertaken as economic development projects by
8 a government agency or authority.
9 Section 2. The act is amended by adding a section to read:
10 Section 304.1. Special economic development projects.
11 (a) Special lotteries.--The Secretary of Revenue shall
12 conduct annually at least three lotteries for the purpose of
13 providing a source of funds for the repayment of indebtedness on
14 bonds issued for the construction of sports arenas, stadia,
15 convention centers and other large-scale facilities undertaken
16 as economic development projects by a government agency or
17 authority. For lotteries conducted for this purpose, the price
18 of each ticket or share shall be $4.
19 (b) Identification of special lotteries.--In all advertising
20 and on tickets, the secretary shall identify any lottery under
21 this section as being conducted for the benefit of the (name and
22 location of project).
23 (c) Deposit of revenues.--Notwithstanding the provisions of
24 section 303(11) of this chapter, the secretary shall deposit
25 one-half of all revenues received under this section, following
26 the payment of prizes to the holders of winning tickets or
27 shares and the payment of costs incurred in the operation and
28 administration of the lottery, including the expenses of the
29 division and the costs resulting from any contract or contracts
30 entered into for promotional, advertising or operational
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1 services or for the purchase or lease of lottery equipment and
2 materials, in the State Lottery Fund for senior citizens
3 programs. The remaining revenues shall be deposited into a
4 special fund in the State Treasury, to be known as the Economic
5 Development Fund. Moneys in the Economic Development Fund shall
6 be used solely for the purposes described under subsection (a)
7 of this section.
8 (d) Initial project.--The initial project to be funded under
9 this section shall be a sports stadium to be located in a city
10 of the second class. Thereafter, the projects to be funded shall
11 be determined by the Department of Community and Economic
12 Development. The Department of Community and Economic
13 Development shall evaluate submitted proposals and base its
14 determination on the benefits which will accrue from the
15 implementation of the project proposed.
16 (e) Unclaimed prizes.--Unclaimed prize money on a winning
17 lottery ticket or share sold under this section shall be
18 retained by the secretary for payment to the person entitled
19 thereto for one year after the drawing in which the prize was
20 won. If no claim is made within such period, the prize money
21 shall be paid into the Economic Development Fund and used for
22 purposes provided under this section.
23 Section 3. Sections 311, 313 and 314 of the act, amended
24 November 21, 1996 (P.L.741, No.134), are amended to read:
25 Section 311. Disposition of funds.
26 (a) State Lottery Fund.--[All] Except as provided in section
27 304.1 of this chapter, moneys received from the operation of the
28 State lottery shall be deposited in a State Lottery Fund which
29 is hereby created. Such moneys shall be used to the extent
30 necessary for the payment of lottery prizes but the amount so
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1 used shall not be less than 40% of the amount of which tickets
2 or shares have been sold. All payments of lottery prizes and for
3 expenses of operation of the lottery shall be made as provided
4 by law. All moneys remaining after payment of prizes and
5 operating expenses shall remain in the State Lottery Fund and
6 shall be allocated for the purpose of providing property tax
7 relief for the elderly for taxes paid in 1971 and thereafter
8 pursuant to the provisions of the act of March 11, 1971
9 (P.L.104, No.3), known as the Senior Citizens Rebate and
10 Assistance Act, and for the purpose of providing free or reduced
11 fare transit service for the elderly pursuant to Chapter 9 and
12 the act of February 11, 1976 (P.L.14, No.10), known as the
13 Pennsylvania Rural and Intercity Common Carrier Surface
14 Transportation Assistance Act. In the event sufficient funds are
15 not available from the lottery receipts to meet the requirements
16 of the Senior Citizens Rebate and Assistance Act or for
17 providing free or reduced fare transit service for the elderly
18 under Chapter 9 and the Pennsylvania Rural and Intercity Common
19 Carrier Surface Transportation Assistance Act, additional funds
20 to fulfill these obligations shall be appropriated from the
21 General Fund for this purpose.
22 (b) Appropriations.--The moneys in said State Lottery Fund
23 shall be appropriated only:
24 (1) For the payment of prizes to the holders of winning
25 lottery tickets or shares.
26 (2) For the expenses of the division in its operation of
27 the lottery.
28 (3) For property tax relief and free or reduced fare
29 transit service for the elderly as provided under subsection
30 (a).
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1 Section 313. Unclaimed prize money.
2 [Unclaimed] Except as provided in section 304.1 of this
3 chapter, unclaimed prize money on a winning lottery ticket or
4 share shall be retained by the secretary for payment to the
5 person entitled thereto for one year after the drawing in which
6 the prize was won. If no claim is made within such period, the
7 prize money shall be paid into the State Lottery Fund and used
8 for purposes as otherwise herein provided.
9 Section 314. Deposits and transactions.
10 The secretary may, in his discretion, require any or all
11 lottery sales agents to deposit to the credit of the State
12 Lottery Fund or, where applicable, the Economic Development
13 Fund, in banks, designated by the State Treasurer, all moneys
14 received by such agents from the sale of lottery tickets or
15 shares, less the amount, if any, retained as compensation for
16 the sale of the tickets or shares, and to file with the
17 secretary or his designated agents reports of their receipts and
18 transactions in the sale of lottery tickets in such form and
19 containing such information as he may require. The secretary may
20 make such arrangements for any person, including a bank, to
21 perform such functions, activities or services in connection
22 with the operation of the lottery as he may deem advisable
23 pursuant to this chapter and the rules and regulations of the
24 department, and such functions, activities or services shall
25 constitute lawful functions, activities and services of such
26 person.
27 Section 4. This act shall take effect in 60 days.
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