PRINTER'S NO. 1811
No. 1537 Session of 1979
INTRODUCED BY WACHOB, MACKOWSKI, C. GEORGE, BENNETT,
S. E. HAYES, JR., GALLAGHER, FEE, YAHNER, WILT, SPENCER,
NOYE, KUKOVICH, LETTERMAN, PETRARCA, REED, MUSTO, RHODES,
D. S. HAYES, E. Z. TAYLOR, COLE, LIVENGOOD, DeWEESE,
D. R. WRIGHT, SIEMINSKI, CAPPABIANCA, RODGERS, PUNT,
PISTELLA AND COCHRAN, JUNE 22, 1979
REFERRED TO COMMITTEE ON HEALTH AND WELFARE, JUNE 22, 1979
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 further providing for the disposition of funds received from
8 the operation of the lottery.
9 The General Assembly of the Commonwealth of Pennsylvania
10 hereby enacts as follows:
11 Section 1. Section 2, clause (11) of subsection (a) of
12 section 6 and section 12, act of August 26, 1971 (P.L.351,
13 No.91), known as the "State Lottery Law," amended December 27,
14 1972 (P.L.1629, No.338), is amended to read:
15 Section 2. Statement of Purpose.--This act is enacted to
16 establish a lottery to be operated by the State, the net
17 proceeds of which are to be used after June 30, 1972 for the
18 purposes of providing property tax relief for the elderly for
19 taxes paid in 1971 and thereafter and for providing certain free
1 or reduced fare local transit to persons [sixty-five] sixty
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.
5 Section 6. Powers and Duties of the Secretary of Revenue.--
6 (a) In addition to the powers and duties provided by law and
7 "The Administrative Code of 1929," the Secretary of Revenue
8 shall have the power and it shall be his duty to operate and
9 administer the lottery, and to promulgate rules and regulations
10 governing the establishment and operation thereof, including but
11 not limited to:
12 * * *
13 (11) The apportionment of the total revenues accruing from
14 the sale of lottery tickets or shares and from all other sources
15 among (i) the payment of prizes to the holders of winning
16 tickets or shares; (ii) the payment of costs incurred in the
17 operation and administration of the lottery, including the
18 expenses of the division and the costs resulting from any
19 contract or contracts entered into for promotional, advertising
20 or operational services or for the purchase or lease of lottery
21 equipment and materials; (iii) for the repayment of the moneys
22 appropriated to the State Lottery Fund pursuant to section 16 of
23 this act; and (iv) for property tax relief and free or reduced
24 fare local transit for the elderly as provided in section 12 of
25 this act: Provided, however, That no less than thirty per cent
26 of the total revenues accruing from the sale of lottery tickets
27 or shares shall be dedicated to subclause (iv) above.
28 * * *
29 Section 12. Disposition of Funds from Sale of Tickets or
30 Shares.--(a) All moneys received from the operation of the
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1 State lottery shall be deposited in a State Lottery Fund which
2 is hereby created. Such moneys shall be used to the extent
3 necessary for the payment of lottery prizes but the amount so
4 used shall not be less than forty per cent of the amount of
5 which tickets or shares have been sold. All payments of lottery
6 prizes and for expenses of operation of the lottery shall be
7 made as provided by law. All moneys remaining after payment of
8 prizes and operating expenses shall be transferred to the
9 General Fund through June 30, 1972, after which date they shall
10 remain in the State Lottery Fund and shall be allocated for the
11 purpose of providing property tax relief for the elderly for
12 taxes paid in 1971 and thereafter pursuant to the provisions of
13 the act of March 11, 1971 (P.L.104, No.3), known as the "Senior
14 Citizens Property Tax [Assistance] or Rent Rebate Act," and for
15 the purpose of providing local transit for the elderly pursuant
16 to the act of January 22, 1968 (P.L.42, No.8), known as the
17 "Pennsylvania Urban Mass Transportation Assistance Law of 1967,"
18 and the act of February 11, 1976 (P.L.14, No.10), known as the
19 "Pennsylvania Rural and Intercity Common Carrier Surface
20 Transportation Assistance Act." In the event sufficient funds
21 are not available from the lottery receipts to meet the
22 requirements of the act of March 11, 1971 (P.L.104, No.3), known
23 as the "Senior Citizens Property Tax [Assistance] or Rent Rebate
24 Act," or for providing local transit for the elderly under the
25 act of January 22, 1968 (P.L.42, No.8), known as the
26 "Pennsylvania Urban Mass Transportation Assistance Law of 1967,"
27 and the act of February 11, 1976 (P.L.14, No.10), known as the
28 "Pennsylvania Rural and Intercity Common Carrier Surface
29 Transportation Assistance Act," additional funds to fulfill
30 these obligations, shall be appropriated from the General Fund
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1 for this purpose.
2 (b) The moneys in said State Lottery Fund shall be
3 appropriated only:
4 (1) For the payment of prizes to the holders of winning
5 lottery tickets or shares;
6 (2) For the expenses of the division in its operation of the
7 lottery;
8 (3) For property tax relief and free or reduced fare local
9 transit for the elderly as provided under section 12 of this
10 act; and
11 (4) For transfer to the General Fund through June 30, 1972,
12 and for the repayment to the General Fund of the amount
13 appropriated to the fund pursuant to section 16 of this act.
14 Section 2. This act shall take effect in 60 days.
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