PRINTER'S NO. 1053
No. 901 Session of 2007
INTRODUCED BY R. MILLER, ARGALL, BAKER, BOYD, CLYMER, EVERETT, FAIRCHILD, GEIST, GINGRICH, GRUCELA, HENNESSEY, HESS, HUTCHINSON, M. KELLER, McILHATTAN, MILLARD, NAILOR, NICKOL, PICKETT, RAPP, REICHLEY, RUBLEY, SCAVELLO, STERN, R. STEVENSON, SWANGER AND WATSON, MARCH 22, 2007
REFERRED TO COMMITTEE ON GAMING OVERSIGHT, MARCH 22, 2007
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. Section 1403 of Title 4 of the Pennsylvania 8 Consolidated Statutes, amended November 1, 2006 (P.L.1243, 9 No.135), is 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% from its 16 daily gross terminal revenue from the slot machines in operation 17 at its facility and a local share assessment as provided in
1 subsection (c) into the fund. All funds owed to the Commonwealth 2 or a municipality under this section shall be held in trust by 3 the licensed gaming entity until the funds are paid or 4 transferred and distributed. Unless otherwise agreed to by the 5 Gaming Board, a licensed gaming entity shall establish a 6 separate bank account to maintain gaming proceeds until such 7 time as they are paid or transferred under this section. 8 (c) Transfers and distributions.--[The] Subject to the 9 provisions of subsection (e), the department shall: 10 (1) Transfer the slot machine tax and assessment imposed 11 in subsection (b) to the fund. 12 (2) From the local share assessment established in 13 subsection (b), make quarterly distributions among the 14 counties hosting a licensed facility in accordance with the 15 following schedule: 16 (i) If the licensed facility is a Category 1 17 licensed facility that is located at a harness racetrack 18 and the county, including a home rule county, in which 19 the licensed facility is located is: 20 (A) A county of the first class: 4% of the 21 gross terminal revenue to the county hosting the 22 licensed facility from each such licensed facility. 23 Notwithstanding any other provision to the contrary, 24 funds from licensed gaming entities located within a 25 county of the first class shall not be distributed 26 outside of a county of the first class. 27 (B) A county of the second class: 2% of the 28 gross terminal revenue to the county hosting the 29 licensed facility from each such licensed facility. 30 (C) A county of the second class A: 1% of the 20070H0901B1053 - 2 -
1 gross terminal revenue to the county hosting the 2 licensed facility from each such licensed facility. 3 An additional 1% of the gross terminal revenue to the 4 county hosting the licensed facility from each such 5 licensed facility for the purpose of municipal grants 6 within the county in which the licensee is located. 7 (D) (I) A county of the third class: Except as 8 provided in subclause (II), 2% of the gross 9 terminal revenue from each such licensed facility 10 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 for health, safety and economic 14 development projects to municipalities within the 15 county where the licensed facility is located. 16 Municipalities that are contiguous to the 17 municipality hosting such licensed facility shall 18 be given priority by the Department of Community 19 and Economic Development in the award of such 20 grants. 21 (II) If a licensed facility is located in 22 one of two counties of the third class where a 23 city of the third class is located in both 24 counties of the third class, the county in which 25 the licensed facility is located shall receive 26 1.2% of the gross terminal revenue to be 27 distributed as follows: 20% to the host city, 28 30% to the host county and 50% to the host county 29 for the purpose of making municipal grants within 30 the county, with priority given to municipalities 20070H0901B1053 - 3 -
1 contiguous to the host city. The county of the 2 third class, which includes a city of the third 3 class that is located in two counties of the 4 third class and is not the host county for the 5 licensed facility, shall receive .8% of the gross 6 terminal revenue to be distributed as follows: 7 60% to a nonhost city of the third class located 8 solely in the nonhost county in which the host 9 city of the third class is also located or 60% to 10 the nonhost city of the third class located both 11 in the host and nonhost counties of the third 12 class, 35% to the nonhost county and 5% to the 13 nonhost county for the purpose of making 14 municipal grants within the county. 15 (E) A county of the fourth class: 2% of the 16 gross terminal revenue from each such licensed 17 facility shall be deposited into a restricted account 18 established in the Department of Community and 19 Economic Development to be used exclusively for 20 grants to the county, to economic development 21 authorities or redevelopment authorities within the 22 county for grants for economic development projects, 23 job training, community improvement projects, other 24 projects in the public interest and reasonable 25 administrative costs. Notwithstanding the provisions 26 of the act of February 9, 1999 (P.L.1, No.1), known 27 as the Capital Facilities Debt Enabling Act, grants 28 made under this clause may be utilized as local 29 matching funds for other grants or loans from the 30 Commonwealth. 20070H0901B1053 - 4 -
1 (F) Counties of the fifth through eighth 2 classes: 2% of the gross terminal revenue from each 3 such licensed facility shall be deposited into a 4 restricted account established in the Department of 5 Community and Economic Development to be used 6 exclusively for grants to the county. 7 (G) Any county not specifically enumerated in 8 clauses (A) through (F), 2% of the gross terminal 9 revenue to the county hosting the licensed facility 10 from each such licensed facility. 11 (ii) If the licensed facility is a Category 1 12 licensed facility and is located at a thoroughbred 13 racetrack and the county in which the licensed facility 14 is located is: 15 (A) A county of the first class: 4% of the 16 gross terminal revenue to the county hosting the 17 licensed facility from each such licensed facility. 18 Notwithstanding any other provision to the contrary, 19 funds from licensed gaming entities located within 20 the county of the first class shall not be 21 distributed outside of a county of the first class. 22 (B) A county of the second class: 2% of the 23 gross terminal revenue to the county hosting the 24 licensed facility from each such licensed facility. 25 (C) A county of the second class A: 1% of the 26 gross terminal revenue to the county hosting the 27 licensed facility from each such licensed facility. 28 An additional 1% of the gross terminal revenue to the 29 county hosting the licensed facility from each such 30 licensed facility for the purpose of municipal grants 20070H0901B1053 - 5 -
1 within the county in which the licensee is located. 2 (D) A county of the third class: 1% of the 3 gross terminal revenue to the county hosting the 4 licensed facility from each such licensed facility. 5 An additional 1% of the gross terminal revenue to the 6 county hosting the licensed facility from each such 7 licensed facility for the purpose of municipal grants 8 within the county in which the licensee is located. 9 (E) A county of the fourth class: 2% of the 10 gross terminal revenue from each such licensed 11 facility shall be deposited into a restricted account 12 established in the Department of Community and 13 Economic Development to be used exclusively for 14 grants to the county, to economic development 15 authorities or redevelopment authorities within the 16 county for grants for economic development projects, 17 community improvement projects, job training, other 18 projects in the public interest and reasonable 19 administrative costs. Notwithstanding the Capital 20 Facilities Debt Enabling Act, grants made under this 21 clause may be utilized as local matching funds for 22 other grants or 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 20070H0901B1053 - 6 -
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 a 11 county of the first class shall not be distributed 12 outside of a county of the first class. The first 13 $5,000,000 of the total amount distributed annually 14 to the county of the first class shall be distributed 15 to the Philadelphia School District. 16 (B) A county of the second class: 2% of the 17 gross terminal revenue to the county hosting the 18 licensed facility from each such licensed facility. 19 (C) A county of the second class A: 1% of the 20 gross terminal revenue to the county hosting the 21 licensed facility from each such licensed facility. 22 An additional 1% of the gross terminal revenue to the 23 county hosting the licensed facility from each such 24 licensed facility for the purpose of municipal grants 25 within the county in which the licensee is located. 26 (D) A county of the third class: 1% of the 27 gross terminal revenue to the county hosting the 28 licensed facility from each such licensed facility. 29 An additional 1% of the gross terminal revenue to the 30 county hosting the licensed facility from each such 20070H0901B1053 - 7 -
1 licensed facility for the purpose of municipal grants 2 within the county in which the licensee is located. 3 (D.1) If a licensed facility is located in one 4 of two counties of the third class where a city of 5 the third class is located in both counties of the 6 third class, the county in which the licensed 7 facility is located shall receive 1.2% of the gross 8 terminal revenue to be distributed as follows: 20% 9 to the host city, 30% to the host county and 50% to 10 the host county for the purpose of making municipal 11 grants within the county, with priority given to 12 municipalities contiguous to the host city. The 13 county of the third class, which includes a city of 14 the third class that is located in two counties of 15 the third class and is not the host county for the 16 licensed facility, shall receive .8% of the gross 17 terminal revenue to be distributed as follows: 60% 18 to a nonhost city of the third class located solely 19 in the nonhost county in which the host city of the 20 third class is also located or 60% to the nonhost 21 city of the third class located both in the host and 22 nonhost counties of the third class, 35% to the 23 nonhost county and 5% to the nonhost county for the 24 purpose of making municipal grants within the county. 25 (E) A county of the fourth class: 2% of the 26 gross terminal revenue from each such licensed 27 facility shall be deposited into a restricted account 28 established in the Department of Community and 29 Economic Development to be used exclusively for 30 grants to the county, to economic development 20070H0901B1053 - 8 -
1 authorities or redevelopment authorities within the 2 county for grants for economic development projects, 3 community improvement projects, job training, other 4 projects in the public interest and reasonable 5 administrative costs. Notwithstanding the Capital 6 Facilities Debt Enabling Act, grants made under this 7 clause may be utilized as local matching funds for 8 other grants or loans from the Commonwealth. 9 (F) Counties of the fifth class: 2% of the 10 gross terminal revenue from each such licensed 11 facility shall be deposited and distributed as 12 follows: 13 (I) One percent shall be deposited into a 14 restricted receipts account in the Department of 15 Community and Economic Development to be used 16 exclusively for grants within the county for 17 economic development projects, community 18 improvement projects and other projects in the 19 public interest within the county. The amount 20 under this subclause includes reasonable 21 administrative costs. 22 (II) One percent shall be deposited into a 23 restricted receipts account in the Department of 24 Community and Economic Development to be used 25 exclusively for grants within contiguous counties 26 for economic development projects, community 27 improvement projects and other projects in the 28 public interest within contiguous counties. The 29 amount under this subclause includes reasonable 30 administrative costs. 20070H0901B1053 - 9 -
1 (III) Fifty percent of any revenue required 2 to be transferred under paragraph (3)(v) shall be 3 deposited into the restricted receipts account 4 established under subclause (I), and 50% shall be 5 deposited into the restricted receipt account 6 established under subclause (II). Notwithstanding 7 the Capital Facilities Debt Enabling Act, grants 8 made under this clause may be utilized as local 9 matching funds for other grants or loans from the 10 Commonwealth. 11 (G) Any county not specifically enumerated in 12 clauses (A) through (F), 2% of the gross terminal 13 revenue to the county hosting the licensed facility 14 from each such licensed facility. 15 (iv) If the facility is a Category 3 licensed 16 facility, 2% of the gross terminal revenue from each such 17 licensed facility shall be deposited into a restricted 18 account established in the Department of Community and 19 Economic Development to be used exclusively for grants to 20 the county, to economic development authorities or 21 redevelopment authorities within the county for grants 22 for economic development projects and community 23 improvement projects. 24 (v) Unless otherwise specified, for the purposes of 25 this paragraph money designated for municipal grants 26 within a county, other than a county of the first class, 27 in which a licensed facility is located shall be used to 28 fund grants to the municipality in which the licensed 29 facility is located, to the county in which the licensed 30 facility is located and to the municipalities which are 20070H0901B1053 - 10 -
1 contiguous to the municipality in which the licensed 2 facility is located and which are located within the 3 county in which the licensed facility is located. Grants 4 shall be administered by the county through its economic 5 development or redevelopment authority in which the 6 licensed facility is located. Grants shall be used to 7 fund the costs of human services, infrastructure 8 improvements, facilities, emergency services, health and 9 public safety expenses associated with licensed facility 10 operations. If at the end of a fiscal year uncommitted 11 funds exist, the county shall pay to the economic 12 development or redevelopment authority of the county in 13 which the licensed facility is located the uncommitted 14 funds. 15 (vi) If the licensed facility is located in more 16 than one county, the amount available shall be 17 distributed on a pro rata basis determined by the 18 percentage of acreage located in each county to the total 19 acreage of all counties occupied by the licensed 20 facility. 21 (vii) The distributions provided in this paragraph 22 shall be based upon county classifications in effect on 23 the effective date of this section. Any reclassification 24 of counties as a result of a Federal decennial census or 25 of a State statute shall not apply to this subparagraph. 26 (viii) If any provision of this paragraph is found 27 to be unenforceable for any reason, the distribution 28 provided for in the unenforceable provision shall be made 29 to the county in which the licensed facility is located 30 for the purposes of grants to municipalities in that 20070H0901B1053 - 11 -
1 county, including municipal grants as specified in 2 subparagraph (v). 3 (ix) Nothing in this paragraph shall prevent any of 4 the above counties which directly receive a distribution 5 under this section from entering into intergovernmental 6 cooperative agreements with other jurisdictions for 7 sharing this money. 8 (3) From the local share assessment established in 9 subsection (b), make quarterly distributions among the 10 municipalities, including home rule municipalities, hosting a 11 licensed facility in accordance with the following schedule: 12 (i) To a city of the second class hosting a licensed 13 facility, other than a Category 3 licensed facility, 2% 14 of the gross terminal revenue or $10,000,000 annually, 15 whichever is greater, shall be paid by each licensed 16 gaming entity operating a facility located in that city. 17 In the event that the revenues generated by the 2% do not 18 meet the $10,000,000 minimum specified in this 19 subparagraph, the department shall collect the remainder 20 of the minimum amount of $10,000,000 from each licensed 21 gaming entity operating a facility in the city and 22 deposit that amount in the city treasury. 23 (ii) To a city of the second class A hosting a 24 licensed facility, other than a Category 3 licensed 25 facility, 2% of the gross terminal revenue or $10,000,000 26 annually, whichever is greater, shall be paid by each 27 licensed entity operating a licensed facility located in 28 that city, subject, however, to the budgetary limitation 29 in this subparagraph. The amount allocated to the 30 designated municipalities shall not exceed 50% of their 20070H0901B1053 - 12 -
1 total budget for fiscal year 2003-2004, adjusted for 2 inflation in subsequent years by an amount not to exceed 3 an annual cost-of-living adjustment calculated by 4 applying the percentage change in the Consumer Price 5 Index immediately prior to the date the adjustment is due 6 to take effect. Any remaining moneys shall be collected 7 by the department from each licensed gaming entity and 8 distributed in accordance with paragraph (2) based upon 9 the classification of county where the licensed facility 10 is located. In the event that the revenues generated by 11 the 2% do not meet the $10,000,000 minimum specified in 12 this subparagraph, the department shall collect the 13 remainder of the minimum amount of $10,000,000 from each 14 licensed gaming entity operating a facility in the city, 15 pay any balance due to the city and transfer any 16 remainder in accordance with paragraph (2). 17 (iii) To a city of the third class hosting a 18 licensed facility, other than a Category 3 licensed 19 facility, 2% of the gross terminal revenue or $10,000,000 20 annually, whichever is greater, shall be paid by each 21 licensed gaming entity operating a licensed facility 22 located in that city, subject, however, to the budgetary 23 limitation in this subparagraph. In the event that the 24 city has a written agreement with a licensed gaming 25 entity executed prior to the effective date of this part, 26 the amount paid under the agreement to the city shall be 27 applied and credited to the difference between 2% of the 28 gross terminal revenue and the $10,000,000 owed under 29 this subparagraph if the 2% of the gross terminal revenue 30 is less than $10,000,000. If 2% of the gross terminal 20070H0901B1053 - 13 -
1 revenue is greater than the $10,000,000 required to be 2 paid under this subparagraph, the credit shall not apply. 3 The amount of gross terminal revenue required to be paid 4 pursuant to the agreement shall be deemed to be gross 5 terminal revenue for purposes of this subparagraph. The 6 amount allocated to the designated municipalities shall 7 not exceed 50% of their total budget for fiscal year 8 2003-2004, adjusted for inflation in subsequent years by 9 an amount not to exceed an annual cost-of-living 10 adjustment calculated by applying the percentage change 11 in the Consumer Price Index immediately prior to the date 12 the adjustment is due to take effect. Any remaining 13 moneys shall be collected by the department from each 14 licensed gaming entity and distributed in accordance with 15 paragraph (2) based upon the classification of county 16 where the licensed facility is located. In the event that 17 the revenues generated by the 2% do not meet the 18 $10,000,000 minimum specified in this subparagraph, the 19 department shall collect the remainder of the minimum 20 amount of $10,000,000 from each licensed gaming entity 21 operating a facility, pay any balance due to the city of 22 the third class and transfer any remainder in accordance 23 with paragraph (2). 24 (iii.1) If a licensed facility is located in a city 25 of the third class and the city is located in more than 26 one county of the third class, 2% of the gross terminal 27 revenue or $10,000,000 annually, whichever is greater, 28 shall be distributed as follows: 80% to the host city 29 and 20% to the city of the third class located solely in 30 a nonhost county in which the host city of the third 20070H0901B1053 - 14 -
1 class is also located. If a licensed facility is located 2 in a city of the third class and that city is located 3 solely in a host county of the third class in which a 4 nonhost city of the third class is also located, 2% of 5 gross terminal revenue or $10,000,000 annually, whichever 6 is greater, shall be distributed as follows: 80% to the 7 host city and 20% to a city of the third class located 8 both in a nonhost county of the third class and in a host 9 county of the third class in which the host city of the 10 third class is located. 11 (iv) To a township of the first class hosting a 12 licensed facility, other than a Category 3 licensed 13 facility, 2% of the gross terminal revenue or $10,000,000 14 annually, whichever is greater, shall be paid by each 15 licensed gaming entity operating a licensed facility 16 located in the township subject, however, to the 17 budgetary limitation in this subparagraph. 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 immediately prior to the date the 24 adjustment is due to take effect. Any remaining money 25 shall be collected by the department from each licensed 26 gaming entity and distributed in accordance with 27 paragraph (2) based upon the classification of county 28 where the licensed facility is located. In the event that 29 the revenues generated by the 2% do not meet the 30 $10,000,000 minimum specified in this subparagraph, the 20070H0901B1053 - 15 -
1 department shall collect the remainder of the minimum 2 amount of $10,000,000 from each licensed gaming entity 3 operating a licensed facility in the township, pay any 4 balance due to the township and transfer any remainder in 5 accordance with paragraph (2). 6 (v) To a township of the second class hosting a 7 licensed facility, other than a Category 3 licensed 8 facility, 2% of the gross terminal revenue or $10,000,000 9 annually, whichever is greater, shall be paid by each 10 licensed gaming entity operating a licensed facility 11 located in the township, subject, however, to the 12 budgetary limitation in this subparagraph. The amount 13 allocated to the designated municipalities shall not 14 exceed 50% of their total budget for fiscal year 2003- 15 2004, adjusted for inflation in subsequent years by an 16 amount not to exceed an annual cost-of-living adjustment 17 calculated by applying the percentage change in the 18 Consumer Price Index immediately prior to the date the 19 adjustment is due to take effect. Any remaining money 20 shall be collected by the department from each licensed 21 gaming entity and distributed in accordance with 22 paragraph (2) based upon the classification of county 23 where the licensed facility is located. Where the 24 licensed facility is other than a Category 3 and is 25 located in more than one second class township, the 26 county commissioners of the county of the third class in 27 which the facility is located shall appoint an advisory 28 committee for the purpose of advising the county as to 29 the need for municipal grants for health, safety, 30 transportation and other projects in the public interest 20070H0901B1053 - 16 -
1 to be comprised of two individuals from the host 2 municipality, two from contiguous municipalities within 3 the county of the third class and one from the host 4 county. A county other than a county of the third class 5 in which the licensed facility is located is not required 6 to appoint an advisory committee and may use funds 7 received under this subparagraph for purposes other than 8 municipal grants. In the event that the revenues 9 generated by the 2% do not meet the $10,000,000 minimum 10 specified in this subparagraph, the department shall 11 collect the remainder of the minimum amount of 12 $10,000,000 from each licensed gaming entity operating a 13 licensed facility in the township, pay any balance due to 14 the township and transfer any remainder in accordance 15 with paragraph (2). 16 (vi) To a borough hosting a licensed facility, other 17 than a Category 3 licensed facility, 2% of the gross 18 terminal revenue or $10,000,000 annually, whichever is 19 greater, shall be paid by each licensed gaming entity 20 operating a licensed facility located in that borough, 21 subject, however, to the budgetary limitation in this 22 subparagraph. The amount allocated to the designated 23 municipalities shall not exceed 50% of their total budget 24 for fiscal year 2003-2004, adjusted for inflation in 25 subsequent years by an amount not to exceed an annual 26 cost-of-living adjustment calculated by applying the 27 percentage change in the Consumer Price Index immediately 28 prior to the date the adjustment is due to take effect. 29 Any remaining money shall be collected by the department 30 from each licensed gaming entity and distributed in 20070H0901B1053 - 17 -
1 accordance with paragraph (2) based upon the 2 classification of county where the licensed facility is 3 located. In the event that the revenues generated by the 4 2% do not meet the $10,000,000 minimum specified in this 5 subparagraph, the department shall collect the remainder 6 of the minimum amount of $10,000,000 from each licensed 7 gaming entity operating a licensed facility in the 8 borough, pay any balance due to the borough and transfer 9 any remainder in accordance with paragraph (2). 10 (vii) To an incorporated town hosting a licensed 11 facility, other than a Category 3 licensed facility, 2% 12 of the gross terminal revenue or $10,000,000 annually, 13 whichever is greater, shall be paid by each licensed 14 entity operating a licensed facility located in the town, 15 subject, 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 immediately 22 prior to the date the adjustment is due to take effect. 23 Any remaining money shall be collected by the department 24 from each licensed gaming entity and distributed in 25 accordance with paragraph (2) based upon the 26 classification of county where the licensed facility 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 department shall collect the remainder 30 of the minimum amount of $10,000,000 from each licensed 20070H0901B1053 - 18 -
1 gaming entity operating a licensed facility in the 2 incorporated town, pay any balance due to the town and 3 transfer any remainder in accordance with paragraph (2). 4 (viii) To a municipality of any class hosting a 5 Category 3 facility, 2% of the gross terminal revenue 6 from the Category 3 licensed facility located in the 7 municipality, subject, however, to the budgetary 8 limitation in this subparagraph. The amount allocated to 9 the designated municipalities shall not exceed 50% of 10 their total budget for fiscal year 2003-2004, adjusted 11 for inflation in subsequent years by an amount not to 12 exceed an annual cost-of-living adjustment calculated by 13 applying the percentage change in the Consumer Price 14 Index immediately prior to the date the adjustment is due 15 to take effect. Any remaining money shall be collected by 16 the department from each licensed gaming entity and 17 distributed in accordance with paragraph (2) based upon 18 the classification of county where the licensed facility 19 is located. 20 (ix) Any municipality not specifically enumerated 21 in subparagraphs (i) through (viii), 2% of the gross 22 terminal revenue to the municipality hosting the licensed 23 facility from each such licensed facility. 24 (x) If the licensed facility is located in more than 25 one municipality, the amount available shall be 26 distributed on a pro rata basis determined by the 27 percentage of acreage located in each municipality to the 28 total acreage of all municipalities occupied by the 29 licensed facility. 30 (xi) If the licensed facility is located at a resort 20070H0901B1053 - 19 -
1 which is also an incorporated municipality, such 2 municipality shall not be eligible to receive any 3 distribution under this paragraph. The distribution it 4 would have otherwise been entitled to under this 5 paragraph shall instead be distributed in accordance with 6 paragraph (2) based upon the county where the licensed 7 facility is located. 8 (xii) The distributions provided in this paragraph 9 shall be based upon municipal classifications in effect 10 on the effective date of this section. For the purposes 11 of this paragraph, any reclassification of municipalities 12 as a result of a Federal decennial census or of a State 13 statute shall not apply to this paragraph. 14 (xiii) If any provision of this paragraph is found 15 to be unenforceable for any reason, the distribution 16 provided for in such unenforceable provision shall be 17 made to the municipality in which the licensed facility 18 is located. 19 (xiv) Nothing in this paragraph shall prevent any of 20 the above municipalities from entering into 21 intergovernmental cooperative agreements with other 22 jurisdictions for sharing this money. 23 (xv) Notwithstanding any other law, agreement or 24 provision in this part to the contrary, all revenues 25 provided, directed or earmarked under this section to or 26 for the benefit of a city of the second class in which an 27 intergovernmental cooperation authority has been 28 established and is in existence pursuant to the act of 29 February 12, 2004 (P.L.73, No.11), known as the 30 Intergovernmental Cooperation Authority Act for Cities of 20070H0901B1053 - 20 -
1 the Second Class, shall be directed to and under the 2 exclusive control of such intergovernmental cooperation 3 authority to be used: 4 (A) to reduce the debt of the second class city; 5 (B) to increase the level of funding of the 6 municipal pension funds of the second class city; or 7 (C) for any other purposes as determined to be 8 in the best interest of the second class city by such 9 intergovernmental cooperation authority. Such 10 revenues shall not be directed to or under the 11 control of such city of the second class or any 12 coordinator appointed pursuant to the act of July 10, 13 1987 (P.L.246, No.47), known as the Municipalities 14 Financial Recovery Act, for such city of the second 15 class. 16 (d) Consumer Price Index.--For purposes of subsection (c), 17 references to the Consumer Price Index shall mean the Consumer 18 Price Index for All Urban Consumers for the Pennsylvania, New 19 Jersey, Delaware and Maryland area for the most recent 12-month 20 period for which figures have been officially reported by the 21 United States Department of Labor, Bureau of Labor Statistics. 22 (e) Priority transfer for preservation of funding level for 23 State Lottery Fund.-- 24 (1) Prior to making any transfer or distribution under 25 this section or section 1408 (relating to transfers from 26 State Gaming Fund), the department shall annually determine 27 the balance in the State Lottery Fund after payment, under 28 section 311 of the act of August 26, 1971 (P.L.351, No.91), 29 known as the State Lottery Law, of lottery prizes and 30 operating expenses of the department relating thereto for the 20070H0901B1053 - 21 -
1 prior fiscal year and shall make the transfer under paragraph 2 (2), if applicable. 3 (2) If such balance is less than the balance from the 4 prior fiscal year determined in the same manner, the 5 department shall transfer an amount equal to the difference 6 between the balances from the State Gaming Fund to the State 7 Lottery Fund. 8 Section 2. Section 1408(e) of Title 4 is amended to read: 9 § 1408. Transfers from State Gaming Fund. 10 * * * 11 (e) Transfer to Property Tax Relief Fund.--[Monthly] 12 Annually, the State Treasurer shall transfer the remaining 13 balance in the State Gaming Fund which is not otherwise 14 transferred under section 1403(e) (relating to establishment of 15 State Gaming Fund and net slot machine revenue distribution) and 16 allocated in subsections (a), (b), (c) and (d) to the Property 17 Tax Relief Fund established in section 1409 (relating to 18 Property Tax Relief Fund). 19 Section 3. This act shall take effect in 60 days. C1L04SFL/20070H0901B1053 - 22 -