PRINTER'S NO. 4533
No. 2915 Session of 2004
INTRODUCED BY MARSICO, SOLOBAY, BLAUM, LEWIS, SCAVELLO,
ARMSTRONG, BASTIAN, BOYD, BUXTON, CLYMER, DALLY, FAIRCHILD,
FLEAGLE, GEIST, GINGRICH, HARRIS, HESS, MAITLAND, MANN,
REICHLEY, SAYLOR, SCHRODER, B. SMITH, R. STEVENSON, WEBER,
WILT, YOUNGBLOOD AND BALDWIN, OCTOBER 18, 2004
REFERRED TO COMMITTEE ON TOURISM AND RECREATIONAL DEVELOPMENT,
OCTOBER 18, 2004
AN ACT
1 Amending Title 4 (Amusements) of the Pennsylvania Consolidated
2 Statutes, further providing for net slot machine revenue
3 distribution.
4 The General Assembly of the Commonwealth of Pennsylvania
5 hereby enacts as follows:
6 Section 1. Section 1403(c)(3) of Title 4 of the Pennsylvania
7 Consolidated Statutes, added July 5, 2004 (P.L.572, No.71), is
8 amended to read:
9 § 1403. Establishment of State Gaming Fund and net slot machine
10 revenue distribution.
11 * * *
12 (c) Transfers and distributions.--The department shall:
13 * * *
14 (3) From the local share assessment established in
15 subsection (b), make quarterly distributions among the
16 municipalities, including home rule municipalities, hosting a
1 licensed facility in accordance with the following schedule:
2 (i) To a city of the second class hosting a licensed
3 facility or facilities, other than a Category 3 licensed
4 facility, 2% of the gross terminal revenue or $10,000,000
5 annually, whichever is greater, of all licensed
6 facilities located in that city. In the event that the
7 revenues generated by the 2% do not meet the $10,000,000
8 minimum specified in this paragraph, the licensed gaming
9 entity operating the licensed facility or facilities in
10 the city shall remit the difference to the municipality.
11 (ii) To a city of the second class A hosting a
12 licensed facility or facilities, other than a Category 3
13 licensed facility, 2% of the gross terminal revenue or
14 $10,000,000 annually, whichever is greater, of all
15 licensed facilities located in that city. [subject,
16 however, to the budgetary limitation in this
17 subparagraph. The amount allocated to the designated
18 municipalities shall not exceed 50% of their total budget
19 for fiscal year 2003-2004, adjusted for inflation in
20 subsequent years by an amount not to exceed an annual
21 cost-of-living adjustment calculated by applying the
22 percentage change in the Consumer Price Index for All
23 Urban Consumers for the Pennsylvania, New Jersey,
24 Delaware and Maryland area, for the most recent 12-month
25 period for which figures have been officially reported by
26 the United States Department of Labor, Bureau of Labor
27 Statistics, immediately prior to the date the adjustment
28 is due to take effect. Any remaining moneys shall be
29 distributed in accordance with paragraph (2) based upon
30 the county where the licensed facility or facilities is
20040H2915B4533 - 2 -
1 located.] In the event that the revenues generated by the
2 2% do not meet the $10,000,000 minimum specified in this
3 subparagraph, the licensed gaming entity operating the
4 licensed facility or facilities in the city shall remit
5 the difference to the municipality.
6 (iii) To a city of the third class hosting a
7 licensed facility or facilities, other than a Category 3
8 licensed facility, 2% of the gross terminal revenue or
9 $10,000,000 annually, whichever is greater, of all
10 licensed facilities located in that city subject,
11 however, to the budgetary limitation in this
12 subparagraph. However, the foregoing limitations shall
13 not apply, notwithstanding any provision to the contrary,
14 if the licensed facility or facilities have executed a
15 written agreement with the city prior to the effective
16 date of this part to provide additional compensation to
17 the city in excess of the difference between 2% of the
18 gross terminal revenue and $10,000,000. [The amount
19 allocated to the designated municipalities shall not
20 exceed 50% of their total budget for fiscal year 2003-
21 2004, adjusted for inflation in subsequent years by an
22 amount not to exceed an annual cost-of-living adjustment
23 calculated by applying the percentage change in the
24 Consumer Price Index for All Urban Consumers for the
25 Pennsylvania, New Jersey, Delaware and Maryland area, for
26 the most recent 12-month period for which figures have
27 been officially reported by the United States Department
28 of Labor, Bureau of Labor Statistics, immediately prior
29 to the date the adjustment is due to take effect. Any
30 remaining moneys shall be distributed in accordance with
20040H2915B4533 - 3 -
1 paragraph (2) based upon the county where the licensed
2 facility or facilities is located.] In the event that the
3 revenues generated by the 2% do not meet the $10,000,000
4 minimum specified in this subparagraph, the licensed
5 gaming entity operating the licensed facility or
6 facilities in the city shall remit the difference to the
7 municipality.
8 (iv) To a township of the first class hosting a
9 licensed facility or facilities, other than a Category 3
10 licensed facility, 2% of the gross terminal revenue or
11 $10,000,000 annually, whichever is greater, of all
12 licensed facilities located in the township. [subject,
13 however, to the budgetary limitation in this
14 subparagraph. The amount allocated to the designated
15 municipalities shall not exceed 50% of their total budget
16 for fiscal year 2003-2004, adjusted for inflation in
17 subsequent years by an amount not to exceed an annual
18 cost-of-living adjustment calculated by applying the
19 percentage change in the Consumer Price Index for All
20 Urban Consumers for the Pennsylvania, New Jersey,
21 Delaware and Maryland area, for the most recent 12-month
22 period for which figures have been officially reported by
23 the United States Department of Labor, Bureau of Labor
24 Statistics, immediately prior to the date the adjustment
25 is due to take effect. Any remaining money shall be
26 distributed in accordance with paragraph (2) based upon
27 the county where the licensed facility or facilities is
28 located.] In the event that the revenues generated by the
29 2% do not meet the $10,000,000 minimum specified in this
30 subparagraph, the licensed gaming entity operating the
20040H2915B4533 - 4 -
1 licensed facility or facilities in the township shall
2 remit the difference to the municipality.
3 (v) To a township of the second class hosting a
4 licensed facility or facilities, other than a Category 3
5 licensed facility, 2% of the gross terminal revenue or
6 $10,000,000 annually, whichever is greater, of all
7 licensed facilities located in the township. [subject,
8 however, to the budgetary limitation in this
9 subparagraph. The amount allocated to the designated
10 municipalities shall not exceed 50% of their total budget
11 for fiscal year 2003-2004, adjusted for inflation in
12 subsequent years by an amount not to exceed an annual
13 cost-of-living adjustment calculated by applying the
14 percentage change in the Consumer Price Index for All
15 Urban Consumers for the Pennsylvania, New Jersey,
16 Delaware and Maryland area, for the most recent 12-month
17 period for which figures have been officially reported by
18 the United States Department of Labor, Bureau of Labor
19 Statistics, immediately prior to the date the adjustment
20 is due to take effect. Any remaining money shall be
21 distributed in accordance with paragraph (2) based upon
22 the county where the licensed facility or facilities is
23 located.] In the event that the revenues generated by the
24 2% do not meet the $10,000,000 minimum specified in this
25 subparagraph, the licensed gaming entity operating the
26 licensed facility or facilities in the township shall
27 remit the difference to the municipality.
28 (vi) To a borough hosting a licensed facility or
29 facilities, other than a Category 3 licensed facility, 2%
30 of the gross terminal revenue or $10,000,000 annually,
20040H2915B4533 - 5 -
1 whichever is greater, of all licensed facilities located
2 in that borough. [subject, however, to the budgetary
3 limitation in this subparagraph. The amount allocated to
4 the designated municipalities shall not exceed 50% of
5 their total budget for fiscal year 2003-2004, adjusted
6 for inflation in subsequent years by an amount not to
7 exceed an annual cost-of-living adjustment calculated by
8 applying the percentage change in the Consumer Price
9 Index for All Urban Consumers for the Pennsylvania, New
10 Jersey, Delaware and Maryland area, for the most recent
11 12-month period for which figures have been officially
12 reported by the United States Department of Labor, Bureau
13 of Labor Statistics, immediately prior to the date the
14 adjustment is due to take effect. Any remaining money
15 shall be distributed in accordance with paragraph (2)
16 based upon the county where the licensed facility or
17 facilities is located.] In the event that the revenues
18 generated by the 2% do not meet the $10,000,000 minimum
19 specified in this subparagraph, the licensed gaming
20 entity operating the licensed facility or facilities in
21 the borough shall remit the difference to the
22 municipality.
23 (vii) To an incorporated town hosting a licensed
24 facility or facilities, other than a Category 3 licensed
25 facility, 2% of the gross terminal revenue or $10,000,000
26 annually, whichever is greater, of all licensed
27 facilities located in the town. [subject, however, to the
28 budgetary limitation in this subparagraph. The amount
29 allocated to the designated municipalities shall not
30 exceed 50% of their total budget for fiscal year 2003-
20040H2915B4533 - 6 -
1 2004, adjusted for inflation in subsequent years by an
2 amount not to exceed an annual cost-of-living adjustment
3 calculated by applying the percentage change in the
4 Consumer Price Index for All Urban Consumers for the
5 Pennsylvania, New Jersey, Delaware and Maryland area, for
6 the most recent 12-month period for which figures have
7 been officially reported by the United States Department
8 of Labor, Bureau of Labor Statistics, immediately prior
9 to the date the adjustment is due to take effect. Any
10 remaining money shall be distributed in accordance with
11 paragraph (2) based upon the county where the licensed
12 facility or facilities is located.] In the event that the
13 revenues generated by the 2% do not meet the $10,000,000
14 minimum specified in this subparagraph, the licensed
15 gaming entity operating the licensed facility or
16 facilities in the town shall remit the difference to the
17 municipality.
18 (viii) To a municipality of any class hosting a
19 Category 3 facility, 2% of the gross terminal revenue
20 from the Category 3 licensed facility located in the
21 municipality.[, subject, however, to the budgetary
22 limitation in this subparagraph. The amount allocated to
23 the designated municipalities shall not exceed 50% of
24 their total budget for fiscal year 2003-2004, adjusted
25 for inflation in subsequent years by an amount not to
26 exceed an annual cost-of-living adjustment calculated by
27 applying the percentage change in the Consumer Price
28 Index for All Urban Consumers for the Pennsylvania, New
29 Jersey, Delaware and Maryland area, for the most recent
30 12-month period for which figures have been officially
20040H2915B4533 - 7 -
1 reported by the United States Department of Labor, Bureau
2 of Labor Statistics, immediately prior to the date the
3 adjustment is due to take effect. Any remaining money
4 shall be distributed in accordance with paragraph (2)
5 based upon the county where the licensed facility or
6 facilities is located.]
7 (ix) Any municipality not specifically enumerated
8 in subparagraphs (i) through (viii), 2% of the gross
9 terminal revenue to the municipality hosting the licensed
10 facility from each such licensed facility.
11 (x) If the licensed facility is located in more than
12 one municipality, the amount available shall be
13 distributed on a pro rata basis determined by the
14 percentage of acreage located in each municipality to the
15 total acreage of all municipalities occupied by the
16 licensed facility.
17 (xi) If the licensed facility is located at a resort
18 which is also an incorporated municipality, such
19 municipality shall not be eligible to receive any
20 distribution under this paragraph. The distribution it
21 would have otherwise been entitled to under this
22 paragraph shall instead be distributed in accordance with
23 paragraph (2) based upon the county where the licensed
24 facility is located.
25 (xii) The distributions provided in this paragraph
26 shall be based upon municipal classifications in effect
27 on the effective date of this section. For the purposes
28 of this paragraph, any reclassification of municipalities
29 as a result of a Federal decennial census or of a State
30 statute shall not apply to this paragraph.
20040H2915B4533 - 8 -
1 (xiii) If any provision of this paragraph is found
2 to be unenforceable for any reason, the distribution
3 provided for in such unenforceable provision shall be
4 made to the municipality in which the licensed facility
5 is located.
6 (xiv) Nothing in this paragraph shall prevent any of
7 the above municipalities from entering into
8 intergovernmental cooperative agreements with other
9 jurisdictions for sharing this money.
10 (xv) Notwithstanding any other law, agreement or
11 provision in this part to the contrary, all revenues
12 provided, directed or earmarked under this section to or
13 for the benefit of a city of the second class in which an
14 intergovernmental cooperation authority has been
15 established and is in existence pursuant to the act of
16 February 12, 2004 (P.L.73, No.11), known as the
17 Intergovernmental Cooperation Authority Act for Cities of
18 the Second Class, shall be directed to and under the
19 exclusive control of such intergovernmental cooperation
20 authority to be used:
21 (A) to reduce the debt of the second class city;
22 (B) to increase the level of funding of the
23 municipal pension funds of the second class city; or
24 (C) for any other purposes as determined to be
25 in the best interest of the second class city by such
26 intergovernmental cooperation authority. Such
27 revenues shall not be directed to or under the
28 control of such city of the second class or any
29 coordinator appointed pursuant to the act of July 10,
30 1987 (P.L.246, No.47), known as the Municipalities
20040H2915B4533 - 9 -
1 Financial Recovery Act, for such city of the second
2 class.
3 Section 2. This act shall take effect in 60 days.
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