PRINTER'S NO. 2987
No. 2165 Session of 2005
INTRODUCED BY REED, BOYD, CALTAGIRONE, CREIGHTON, GINGRICH,
GODSHALL, HANNA, HARRIS, MACKERETH, MARKOSEK, MUSTIO,
SCAVELLO AND E. Z. TAYLOR, OCTOBER 31, 2005
REFERRED TO COMMITTEE ON TOURISM AND RECREATIONAL DEVELOPMENT,
OCTOBER 31, 2005
AN ACT
1 Amending Title 4 (Amusements) of the Pennsylvania Consolidated
2 Statutes, further providing for the rate of the slot machine
3 tax; deleting provisions for various distributions from the
4 State Gaming Fund; revising distributions from the
5 Pennsylvania Race Horse Development Fund, the Pennsylvania
6 Gaming Economic Development and Tourism Fund and the State
7 Gaming Fund; and providing for the Property Tax Reduction
8 Fund.
9 The General Assembly of the Commonwealth of Pennsylvania
10 hereby enacts as follows:
11 Section 1. Sections 1102, 1403, 1404, 1405, 1406, 1407, 1408
12 and 1409 of Title 4 of the Pennsylvania Consolidated Statutes
13 are amended to read:
14 § 1102. Legislative intent.
15 The General Assembly recognizes the following public policy
16 purposes and declares that the following objectives of the
17 Commonwealth are to be served by this part:
18 (1) The primary objective of this part to which all
19 other objectives and purposes are secondary is to protect the
20 public through the regulation and policing of all activities
1 involving gaming and practices that continue to be unlawful.
2 (2) The authorization of limited gaming by the
3 installation and operation of slot machines as authorized in
4 this part is intended to enhance live horse racing, breeding
5 programs, entertainment and employment in this Commonwealth.
6 (3) The authorization of limited gaming is intended to
7 provide a significant source of new revenue to the
8 Commonwealth to support property tax [relief, wage tax
9 reduction, economic development opportunities] reduction and
10 other similar initiatives.
11 (4) The authorization of limited gaming is intended to
12 positively assist the Commonwealth's horse racing industry,
13 support programs intended to foster and promote horse
14 breeding and improve the living and working conditions of
15 personnel who work and reside in and around the stable and
16 backside areas of racetracks.
17 (5) The authorization of limited gaming is intended to
18 provide broad economic opportunities to the citizens of this
19 Commonwealth and shall be implemented in such a manner as to
20 prevent possible monopolization by establishing reasonable
21 restrictions on the control of multiple licensed gaming
22 facilities in this Commonwealth.
23 (6) The authorization of limited gaming is intended to
24 enhance the further development of the tourism market
25 throughout this Commonwealth, including, but not limited to,
26 year-round recreational and tourism locations in this
27 Commonwealth.
28 (7) Participation in limited gaming authorized under
29 this part by any licensee or permittee shall be deemed a
30 privilege, conditioned upon the proper and continued
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1 qualification of the licensee or permittee and upon the
2 discharge of the affirmative responsibility of each licensee
3 to provide the regulatory and investigatory authorities of
4 the Commonwealth with assistance and information necessary to
5 assure that the policies declared by this part are achieved.
6 (8) Strictly monitored and enforced control over all
7 limited gaming authorized by this part shall be provided
8 through regulation, licensing and appropriate enforcement
9 actions of specified locations, persons, associations,
10 practices, activities, licensees and permittees.
11 (9) Strict financial monitoring and controls shall be
12 established and enforced by all licensees or permittees.
13 (10) The public interest of the citizens of this
14 Commonwealth and the social effect of gaming shall be taken
15 into consideration in any decision or order made pursuant to
16 this part.
17 (11) It is necessary to maintain the integrity of the
18 regulatory control and legislative oversight over the
19 operation of slot machines in this Commonwealth; to prevent
20 the actual or appearance of corruption that may result from
21 large campaign contributions; ensure the bipartisan
22 administration of this part; and avoid actions that may erode
23 public confidence in the system of representative government.
24 § 1403. Establishment of State Gaming Fund and net slot machine
25 revenue distribution.
26 (a) Fund established.--There is hereby established the State
27 Gaming Fund within the State Treasury.
28 (b) Slot machine tax.--The department shall determine and
29 each slot machine licensee shall pay a daily tax of [34% and a
30 local share assessment of 4%] 38% of its daily gross terminal
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1 revenue from the slot machines in operation at its facility into
2 the fund.
3 (c) Transfers and distributions.--The department shall[:
4 (1) Transfer] transfer the slot machine tax and
5 assessment imposed in subsection (b) to the fund.
6 [(2) From the local share assessment established in
7 subsection (b), make quarterly distributions among the
8 counties hosting a licensed facility in accordance with the
9 following schedule:
10 (i) If the licensed facility is a Category 1
11 licensed facility that is located at a harness racetrack
12 and the county, including a home rule county, in which
13 the licensed facility is located is:
14 (A) A county of the first class: 4% of the
15 gross terminal revenue to the county hosting the
16 licensed facility from each such licensed facility.
17 Notwithstanding any other provision to the contrary,
18 funds from licensed gaming entities located within a
19 county of the first class shall not be distributed
20 outside of a county of the first class.
21 (B) A county of the second class: 2% of the
22 gross terminal revenue to the county hosting the
23 licensed facility from each such licensed facility.
24 (C) A county of the second class A: 1% of the
25 gross terminal revenue to the county hosting the
26 licensed facility from each such licensed facility.
27 An additional 1% of the gross terminal revenue to the
28 county hosting the licensed facility from each such
29 licensed facility for the purpose of municipal grants
30 within the county in which the licensee is located.
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1 (D) A county of the third class: 2% of the
2 gross terminal revenue from each such licensed
3 facility shall be deposited into a restricted account
4 established in the Department of Community and
5 Economic Development to be used exclusively for
6 grants for health, safety and economic development
7 projects to municipalities within the county where
8 the licensed facility is located. Municipalities that
9 are contiguous to the municipality hosting such
10 licensed facility shall be given priority by the
11 Department of Community and Economic Development in
12 the award of such grants.
13 (E) A county of the fourth class: 2% of the
14 gross terminal revenue from each such licensed
15 facility shall be deposited into a restricted account
16 established in the Department of Community and
17 Economic Development to be used exclusively for
18 grants to the county, to economic development
19 authorities or organizations within the county or
20 redevelopment authorities within the county for
21 grants for economic development projects, job
22 training, community improvement projects, other
23 projects in the public interest and reasonable
24 administrative costs. Notwithstanding the provisions
25 of the act of February 9, 1999 (P.L.1, No.1), known
26 as the Capital Facilities Debt Enabling Act, grants
27 made under this clause may be utilized as local
28 matching funds for other grants or loans from the
29 Commonwealth.
30 (F) Counties of the fifth through eighth
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1 classes: 2% of the gross terminal revenue from each
2 such licensed facility shall be deposited into a
3 restricted account established in the Department of
4 Community and Economic Development to be used
5 exclusively for grants to the county.
6 (G) Any county not specifically enumerated in
7 clauses (A) through (F), 2% of the gross terminal
8 revenue to the county hosting the licensed facility
9 from each such licensed facility.
10 (ii) If the licensed facility is a Category 1
11 licensed facility and is located at a thoroughbred
12 racetrack and the county in which the licensed facility
13 is located is:
14 (A) A county of the first class: 4% of the
15 gross terminal revenue to the county hosting the
16 licensed facility from each such licensed facility.
17 Notwithstanding any other provision to the contrary,
18 funds from licensed gaming entities located within
19 the county of the first class shall not be
20 distributed outside of a county of the first class.
21 (B) A county of the second class: 2% of the
22 gross terminal revenue to the county hosting the
23 licensed facility from each such licensed facility.
24 (C) A county of the second class A: 1% of the
25 gross terminal revenue to the county hosting the
26 licensed facility from each such licensed facility.
27 An additional 1% of the gross terminal revenue to the
28 county hosting the licensed facility from each such
29 licensed facility for the purpose of municipal grants
30 within the county in which the licensee is located.
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1 (D) A county of the third class: 1% of the
2 gross terminal revenue to the county hosting the
3 licensed facility from each such licensed facility.
4 An additional 1% of the gross terminal revenue to the
5 county hosting the licensed facility from each such
6 licensed facility for the purpose of municipal grants
7 within the county in which the licensee is located.
8 (E) A county of the fourth class: 2% of the
9 gross terminal revenue from each such licensed
10 facility 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 to the county, to economic development
14 authorities or organizations within the county or
15 redevelopment authorities within the county for
16 grants for economic development projects, community
17 improvement projects, job training, other projects in
18 the public interest and reasonable administrative
19 costs. Notwithstanding the Capital Facilities Debt
20 Enabling Act, grants made under this clause may be
21 utilized as local matching funds for other grants or
22 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
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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
11 the county of the first class shall not be
12 distributed outside of a county of the first class.
13 (B) A county of the second class: 2% of the
14 gross terminal revenue to the county hosting the
15 licensed facility from each such licensed facility.
16 (C) A county of the second class A: 1% of the
17 gross terminal revenue to the county hosting the
18 licensed facility from each such licensed facility.
19 An additional 1% of the gross terminal revenue to the
20 county hosting the licensed facility from each such
21 licensed facility for the purpose of municipal grants
22 within the county in which the licensee is located.
23 (D) A county of the third class: 1% of the
24 gross terminal revenue to the county hosting the
25 licensed facility from each such licensed facility.
26 An additional 1% of the gross terminal revenue to the
27 county hosting the licensed facility from each such
28 licensed facility for the purpose of municipal grants
29 within the county in which the licensee is located.
30 (E) A county of the fourth class: 2% of the
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1 gross terminal revenue from each such licensed
2 facility shall be deposited into a restricted account
3 established in the Department of Community and
4 Economic Development to be used exclusively for
5 grants to the county, to economic development
6 authorities or organizations within the county or
7 redevelopment authorities within the county for
8 grants for economic development projects, community
9 improvement projects, job training, other projects in
10 the public interest and reasonable administrative
11 costs. Notwithstanding the Capital Facilities Debt
12 Enabling Act, grants made under this clause may be
13 utilized as local matching funds for other grants or
14 loans from the Commonwealth.
15 (F) Counties of the fifth through eighth
16 classes: 2% of the gross terminal revenue from each
17 such licensed facility shall be deposited into a
18 restricted account established in the Department of
19 Community and Economic Development to be used
20 exclusively for grants to the county, to contiguous
21 counties, to economic development authorities or
22 organizations within the county or contiguous
23 counties or redevelopment authorities within the
24 county or contiguous counties for grants for economic
25 development projects, community improvement projects,
26 other projects in the public interest and reasonable
27 administrative costs. Notwithstanding the Capital
28 Facilities Debt Enabling Act, grants made under this
29 clause may be utilized as local matching funds for
30 other grants or loans from the Commonwealth.
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1 (G) Any county not specifically enumerated in
2 clauses (A) through (F), 2% of the gross terminal
3 revenue to the county hosting the licensed facility
4 from each such licensed facility.
5 (iv) If the facility is a Category 3 licensed
6 facility, 2% of the gross terminal revenue from each such
7 licensed facility shall be deposited into a restricted
8 account established in the Department of Community and
9 Economic Development to be used exclusively for grants to
10 the county, to economic development authorities or
11 organizations within the county or redevelopment
12 authorities within the county for grants for economic
13 development projects and community improvement projects.
14 (v) Unless otherwise specified, for the purposes of
15 this paragraph money designated for municipal grants
16 within a county, other than a county of the first class,
17 in which a licensed facility is located shall be used to
18 fund grants to the municipality in which the licensed
19 facility is located, to the county in which the licensed
20 facility is located and to the municipalities which are
21 contiguous to the municipality in which the licensed
22 facility is located and which are located within the
23 county in which the licensed facility is located. Grants
24 shall be administered by the county through its economic
25 development or redevelopment authority in which the
26 licensed facility is located. Grants shall be used to
27 fund the costs of human services, infrastructure
28 improvements, facilities, emergency services, health and
29 public safety expenses associated with licensed facility
30 operations. If at the end of a fiscal year uncommitted
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1 funds exist, the county shall pay to the economic
2 development or redevelopment authority of the county in
3 which the licensed facility is located the uncommitted
4 funds.
5 (vi) If the licensed facility is located in more
6 than one county, the amount available shall be
7 distributed on a pro rata basis determined by the
8 percentage of acreage located in each county to the total
9 acreage of all counties occupied by the licensed
10 facility.
11 (vii) The distributions provided in this paragraph
12 shall be based upon county classifications in effect on
13 the effective date of this section. Any reclassification
14 of counties as a result of a Federal decennial census or
15 of a State statute shall not apply to this subparagraph.
16 (viii) If any provision of this paragraph is found
17 to be unenforceable for any reason, the distribution
18 provided for in the unenforceable provision shall be made
19 to the county in which the licensed facility is located
20 for the purposes of grants to municipalities in that
21 county, including municipal grants as specified in
22 subparagraph (v).
23 (ix) Nothing in this paragraph shall prevent any of
24 the above counties from entering into intergovernmental
25 cooperative agreements with other jurisdictions for
26 sharing this money.
27 (3) From the local share assessment established in
28 subsection (b), make quarterly distributions among the
29 municipalities, including home rule municipalities, hosting a
30 licensed facility in accordance with the following schedule:
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1 (i) To a city of the second class hosting a licensed
2 facility or facilities, other than a Category 3 licensed
3 facility, 2% of the gross terminal revenue or $10,000,000
4 annually, whichever is greater, of all licensed
5 facilities located in that city. In the event that the
6 revenues generated by the 2% do not meet the $10,000,000
7 minimum specified in this paragraph, the licensed gaming
8 entity operating the licensed facility or facilities in
9 the city shall remit the difference to the municipality.
10 (ii) To a city of the second class A hosting a
11 licensed facility or facilities, other than a Category 3
12 licensed facility, 2% of the gross terminal revenue or
13 $10,000,000 annually, whichever is greater, of all
14 licensed facilities located in that city subject,
15 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 for All
22 Urban Consumers for the Pennsylvania, New Jersey,
23 Delaware and Maryland area, for the most recent 12-month
24 period for which figures have been officially reported by
25 the United States Department of Labor, Bureau of Labor
26 Statistics, immediately prior to the date the adjustment
27 is due to take effect. Any remaining moneys shall be
28 distributed in accordance with paragraph (2) based upon
29 the county where the licensed facility or facilities is
30 located. In the event that the revenues generated by the
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1 2% do not meet the $10,000,000 minimum specified in this
2 subparagraph, the licensed gaming entity operating the
3 licensed facility or facilities in the city shall remit
4 the difference to the municipality.
5 (iii) To a city of the third class hosting a
6 licensed facility or facilities, other than a Category 3
7 licensed facility, 2% of the gross terminal revenue or
8 $10,000,000 annually, whichever is greater, of all
9 licensed facilities located in that city subject,
10 however, to the budgetary limitation in this
11 subparagraph. However, the foregoing limitations shall
12 not apply, notwithstanding any provision to the contrary,
13 if the licensed facility or facilities have executed a
14 written agreement with the city prior to the effective
15 date of this part to provide additional compensation to
16 the city in excess of the difference between 2% of the
17 gross terminal revenue and $10,000,000. 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 for All Urban Consumers for the
24 Pennsylvania, New Jersey, Delaware and Maryland area, for
25 the most recent 12-month period for which figures have
26 been officially reported by the United States Department
27 of Labor, Bureau of Labor Statistics, immediately prior
28 to the date the adjustment is due to take effect. Any
29 remaining moneys shall be distributed in accordance with
30 paragraph (2) based upon the county where the licensed
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1 facility or facilities is located. In the event that the
2 revenues generated by the 2% do not meet the $10,000,000
3 minimum specified in this subparagraph, the licensed
4 gaming entity operating the licensed facility or
5 facilities in the city shall remit the difference to the
6 municipality.
7 (iv) To a township of the first class hosting a
8 licensed facility or facilities, other than a Category 3
9 licensed facility, 2% of the gross terminal revenue or
10 $10,000,000 annually, whichever is greater, of all
11 licensed facilities located in the township subject,
12 however, to the budgetary limitation in this
13 subparagraph. The amount allocated to the designated
14 municipalities shall not exceed 50% of their total budget
15 for fiscal year 2003-2004, adjusted for inflation in
16 subsequent years by an amount not to exceed an annual
17 cost-of-living adjustment calculated by applying the
18 percentage change in the Consumer Price Index for All
19 Urban Consumers for the Pennsylvania, New Jersey,
20 Delaware and Maryland area, for the most recent 12-month
21 period for which figures have been officially reported by
22 the United States Department of Labor, Bureau of Labor
23 Statistics, immediately prior to the date the adjustment
24 is due to take effect. Any remaining money shall be
25 distributed in accordance with paragraph (2) based upon
26 the county where the licensed facility or facilities 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 licensed gaming entity operating the
30 licensed facility or facilities in the township shall
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1 remit the difference to the municipality.
2 (v) To a township of the second class hosting a
3 licensed facility or facilities, other than a Category 3
4 licensed facility, 2% of the gross terminal revenue or
5 $10,000,000 annually, whichever is greater, of all
6 licensed facilities located in the township subject,
7 however, to the budgetary limitation in this
8 subparagraph. The amount allocated to the designated
9 municipalities shall not exceed 50% of their total budget
10 for fiscal year 2003-2004, adjusted for inflation in
11 subsequent years by an amount not to exceed an annual
12 cost-of-living adjustment calculated by applying the
13 percentage change in the Consumer Price Index for All
14 Urban Consumers for the Pennsylvania, New Jersey,
15 Delaware and Maryland area, for the most recent 12-month
16 period for which figures have been officially reported by
17 the United States Department of Labor, Bureau of Labor
18 Statistics, immediately prior to the date the adjustment
19 is due to take effect. Any remaining money shall be
20 distributed in accordance with paragraph (2) based upon
21 the county where the licensed facility or facilities is
22 located. In the event that the revenues generated by the
23 2% do not meet the $10,000,000 minimum specified in this
24 subparagraph, the licensed gaming entity operating the
25 licensed facility or facilities in the township shall
26 remit the difference to the municipality.
27 (vi) To a borough hosting a licensed facility or
28 facilities, other than a Category 3 licensed facility, 2%
29 of the gross terminal revenue or $10,000,000 annually,
30 whichever is greater, of all licensed facilities located
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1 in that borough subject, however, to the budgetary
2 limitation in this subparagraph. The amount allocated to
3 the designated municipalities shall not exceed 50% of
4 their total budget for fiscal year 2003-2004, adjusted
5 for inflation in subsequent years by an amount not to
6 exceed an annual cost-of-living adjustment calculated by
7 applying the percentage change in the Consumer Price
8 Index for All Urban Consumers for the Pennsylvania, New
9 Jersey, Delaware and Maryland area, for the most recent
10 12-month period for which figures have been officially
11 reported by the United States Department of Labor, Bureau
12 of Labor Statistics, immediately prior to the date the
13 adjustment is due to take effect. Any remaining money
14 shall be distributed in accordance with paragraph (2)
15 based upon the county where the licensed facility or
16 facilities is located. In the event that the revenues
17 generated by the 2% do not meet the $10,000,000 minimum
18 specified in this subparagraph, the licensed gaming
19 entity operating the licensed facility or facilities in
20 the borough shall remit the difference to the
21 municipality.
22 (vii) To an incorporated town hosting a licensed
23 facility or facilities, other than a Category 3 licensed
24 facility, 2% of the gross terminal revenue or $10,000,000
25 annually, whichever is greater, of all licensed
26 facilities located in the town subject, however, to the
27 budgetary limitation in this subparagraph. The amount
28 allocated to the designated municipalities shall not
29 exceed 50% of their total budget for fiscal year 2003-
30 2004, adjusted for inflation in subsequent years by an
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1 amount not to exceed an annual cost-of-living adjustment
2 calculated by applying the percentage change in the
3 Consumer Price Index for All Urban Consumers for the
4 Pennsylvania, New Jersey, Delaware and Maryland area, for
5 the most recent 12-month period for which figures have
6 been officially reported by the United States Department
7 of Labor, Bureau of Labor Statistics, immediately prior
8 to the date the adjustment is due to take effect. Any
9 remaining money shall be distributed in accordance with
10 paragraph (2) based upon the county where the licensed
11 facility or facilities is located. In the event that the
12 revenues generated by the 2% do not meet the $10,000,000
13 minimum specified in this subparagraph, the licensed
14 gaming entity operating the licensed facility or
15 facilities in the town shall remit the difference to the
16 municipality.
17 (viii) To a municipality of any class hosting a
18 Category 3 facility, 2% of the gross terminal revenue
19 from the Category 3 licensed facility located in the
20 municipality, subject, however, to the budgetary
21 limitation in this subparagraph. The amount allocated to
22 the designated municipalities shall not exceed 50% of
23 their total budget for fiscal year 2003-2004, adjusted
24 for inflation in subsequent years by an amount not to
25 exceed an annual cost-of-living adjustment calculated by
26 applying the percentage change in the Consumer Price
27 Index for All Urban Consumers for the Pennsylvania, New
28 Jersey, Delaware and Maryland area, for the most recent
29 12-month period for which figures have been officially
30 reported by the United States Department of Labor, Bureau
20050H2165B2987 - 17 -
1 of Labor Statistics, immediately prior to the date the
2 adjustment is due to take effect. Any remaining money
3 shall be distributed in accordance with paragraph (2)
4 based upon the county where the licensed facility or
5 facilities is located.
6 (ix) Any municipality not specifically enumerated
7 in subparagraphs (i) through (viii), 2% of the gross
8 terminal revenue to the municipality hosting the licensed
9 facility from each such licensed facility.
10 (x) If the licensed facility is located in more than
11 one municipality, the amount available shall be
12 distributed on a pro rata basis determined by the
13 percentage of acreage located in each municipality to the
14 total acreage of all municipalities occupied by the
15 licensed facility.
16 (xi) If the licensed facility is located at a resort
17 which is also an incorporated municipality, such
18 municipality shall not be eligible to receive any
19 distribution under this paragraph. The distribution it
20 would have otherwise been entitled to under this
21 paragraph shall instead be distributed in accordance with
22 paragraph (2) based upon the county where the licensed
23 facility is located.
24 (xii) The distributions provided in this paragraph
25 shall be based upon municipal classifications in effect
26 on the effective date of this section. For the purposes
27 of this paragraph, any reclassification of municipalities
28 as a result of a Federal decennial census or of a State
29 statute shall not apply to this paragraph.
30 (xiii) If any provision of this paragraph is found
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1 to be unenforceable for any reason, the distribution
2 provided for in such unenforceable provision shall be
3 made to the municipality in which the licensed facility
4 is located.
5 (xiv) Nothing in this paragraph shall prevent any of
6 the above municipalities from entering into
7 intergovernmental cooperative agreements with other
8 jurisdictions for sharing this money.
9 (xv) Notwithstanding any other law, agreement or
10 provision in this part to the contrary, all revenues
11 provided, directed or earmarked under this section to or
12 for the benefit of a city of the second class in which an
13 intergovernmental cooperation authority has been
14 established and is in existence pursuant to the act of
15 February 12, 2004 (P.L.73, No.11), known as the
16 Intergovernmental Cooperation Authority Act for Cities of
17 the Second Class, shall be directed to and under the
18 exclusive control of such intergovernmental cooperation
19 authority to be used:
20 (A) to reduce the debt of the second class city;
21 (B) to increase the level of funding of the
22 municipal pension funds of the second class city; or
23 (C) for any other purposes as determined to be
24 in the best interest of the second class city by such
25 intergovernmental cooperation authority. Such
26 revenues shall not be directed to or under the
27 control of such city of the second class or any
28 coordinator appointed pursuant to the act of July 10,
29 1987 (P.L.246, No.47), known as the Municipalities
30 Financial Recovery Act, for such city of the second
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1 class.
2 § 1404. Distributions from licensee's revenue receipts.
3 For holders of Category 1 licenses, an amount not less than
4 $5,000,000 over the initial five-year period following the
5 initial issuance of a Category 1 slot machine license and an
6 amount not less than $250,000 nor more than $1,000,000 per year
7 for five years thereafter shall be deposited by each licensee
8 into a segregated account and used for improvement and
9 maintenance of the backside area and related buildings and
10 structures at the racetrack at which the licensee operates. The
11 licensed racing entity designee and the designee of the
12 recognized horsemen's organization at each racetrack shall
13 jointly consider the appropriate amount of the funds and how the
14 money shall be spent at the racetrack. Disputes involving the
15 amount and expenditure of funds under this section shall be
16 resolved by the State Horse Racing Commission or the State
17 Harness Racing Commission, whichever is appropriate, which shall
18 oversee the use of these funds. Notwithstanding other provisions
19 of this section, a licensed racing entity that has not
20 previously conducted live racing and is constructing a new
21 racetrack, backside area and related buildings and structures
22 that can establish to the satisfaction of the board that the
23 licensed racing entity has spent no less than $5,000,000 in the
24 construction of the new racetrack's backside area, related
25 buildings and structures shall not be subject to the
26 expenditures required by this section until the tenth year after
27 the completion of such construction at the new racetrack. The
28 board may extend the time frame for distributions under this
29 section for a newly constructed racetrack for up to an
30 additional two years if, upon inspection, either the State Horse
20050H2165B2987 - 20 -
1 Racing Commission or the State Harness Racing Commission,
2 whichever is applicable, determines that the physical condition
3 of the backside area and related buildings and structures of the
4 racetrack is sufficient to protect the health and safety of
5 backside employees.]
6 § 1405. Pennsylvania Race Horse Development Fund.
7 (a) Fund established.--There is hereby established a
8 Pennsylvania Race Horse Development Fund within the State
9 Treasury.
10 (b) Pennsylvania race horse improvement assessment.--Each
11 active and operating licensed gaming entity shall pay a daily
12 assessment to the Pennsylvania Race Horse Development Fund as
13 determined by the department. Subject to the daily assessment
14 cap established under subsection (c), the licensed gaming
15 entity's assessment shall be a percentage of each licensed
16 gaming entity's gross terminal revenue, equal to an amount
17 calculated as "A" multiplied by "B", with "A" being equal to
18 each licensed gaming entity's gross terminal revenue for that
19 day divided by the total gross terminal revenue for that day
20 from all licensed gaming entities, and "B" being equal to 18% of
21 that day's gross terminal revenue for all active and operating
22 Category 1 licensees conducting live racing.
23 (c) Daily assessment cap.--If the resulting daily assessment
24 for a licensed gaming entity exceeds 12% of that licensed gaming
25 entity's gross terminal revenue for the day, the licensed gaming
26 entity shall pay a daily assessment of 12% of its gross terminal
27 revenue for that day.
28 (d) Distributions.--In accordance with section 1406
29 (relating to distributions from Pennsylvania Race Horse
30 Development Fund), the department shall make [distributions]
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1 monthly transfers from the Pennsylvania Race Horse Development
2 Fund to [each of the active and operating Category 1 licensees
3 conducting live racing] the Property Tax Reduction Fund.
4 § 1406. Distributions from Pennsylvania Race Horse Development
5 Fund.
6 [(a) Distributions.--]Funds from the Pennsylvania Race Horse
7 Development Fund shall be [distributed to each active and
8 operating Category 1 licensee conducting live racing in the
9 following manner:
10 (1) An amount equal to 18% of the daily gross terminal
11 revenue of each Category 1 licensee shall be distributed to
12 each active and operating Category 1 licensee conducting live
13 racing unless the daily assessments are affected by the daily
14 assessment cap provided for in section 1405(c) (relating to
15 Pennsylvania Race Horse Development Fund). In cases in which
16 the daily assessment cap affects daily assessments, the
17 distribution to each active and operating Category 1 licensee
18 conducting live racing for that day shall be a percentage of
19 the total daily assessments paid into the Pennsylvania Race
20 Horse Development Fund for that day equal to the gross
21 terminal revenue of each active and operating Category 1
22 licensee conducting live racing for that day divided by the
23 total gross terminal revenue of all active and operating
24 Category 1 licensees conducting live racing for that day. The
25 distributions to licensed racing entities from the
26 Pennsylvania Race Horse Development Fund shall be allocated
27 as follows:
28 (i) Eighty percent to be deposited weekly into a
29 separate, interest-bearing purse account to be
30 established by and for the benefit of the horsemen. The
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1 earned interest on the account shall be credited to the
2 purse account. Licensees shall combine these funds with
3 revenues from existing purse agreements to fund purses
4 for live races consistent with those agreements with the
5 advice and consent of the horsemen.
6 (ii) From licensees that operate at thoroughbred
7 tracks, 16% to be deposited on a monthly basis into the
8 Pennsylvania Breeding Fund as defined in section 223 of
9 the Race Horse Industry Reform Act. From licensees that
10 operate at standardbred tracks, 8% to be deposited on a
11 monthly basis in the Pennsylvania Sire Stakes Fund as
12 defined in section 224 of the Race Horse Industry Reform
13 Act and 8% to be deposited on a monthly basis into a
14 restricted account in the State Racing Fund to be known
15 as the Pennsylvania Standardbred Breeders Development
16 Fund. The State Harness Racing Commission shall, in
17 consultation with the Secretary of Agriculture by rule or
18 by regulation, adopt a standardbred breeders program that
19 will include the administration of Pennsylvania Stallion
20 Award, Pennsylvania Bred Award and a Pennsylvania Sired
21 and Bred Award.
22 (iii) Four percent to be used to fund health and
23 pension benefits for the members of the horsemen's
24 organizations representing the owners and trainers at the
25 racetrack at which the licensed racing entity operates
26 for the benefit of the organization's members, their
27 families, employees and others in accordance with the
28 rules and eligibility requirements of the organization,
29 as approved by the State Horse Racing Commission or the
30 State Harness Racing Commission. This amount shall be
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1 deposited within five business days of the end of each
2 month into a separate account to be established by each
3 respective horsemen's organization at a banking
4 institution of its choice. Of this amount, $250,000 shall
5 be paid annually by the horsemen's organization to the
6 thoroughbred jockeys or standardbred drivers organization
7 at the racetrack at which the licensed racing entity
8 operates for health insurance, life insurance or other
9 benefits to active and disabled thoroughbred jockeys or
10 standardbred drivers in accordance with the rules and
11 eligibility requirements of that organization.
12 (b) Guidelines.--The board shall establish guidelines that
13 ensure that funds allocated to the horsemen's organization are
14 used to finance the programs to benefit all horsemen of this
15 Commonwealth and that administrative and overhead costs are
16 reasonably related to such programs.
17 (c) Eligible recipients.--Funds allocated to the horsemen's
18 organization under this part must be used to benefit all
19 horsemen. Funds acquired from other sources shall be kept
20 separate and apart from funds obtained under this part.
21 (d) Reasonableness.--Funding for benevolent programs,
22 including, but not limited to, pension, health and insurance
23 plans, will be considered reasonable if such program funding on
24 an annual basis is at least 85% of the total statutory
25 allocation.
26 (e) Filing of audit.--All horsemen's organizations that
27 receive funds under this section shall file annually with the
28 appropriate commission and the board an audit prepared by a
29 certified public accountant of all funds received. Such filings
30 shall be open to public review. The horsemen's organizations
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1 shall maintain adequate records concerning receipt and
2 distribution of funds allocated to them.
3 (f) Contracts.--All health and pension benefits contracts
4 shall be reviewed and approved by the board.
5 (g) Penalty.--Any violation of the provisions of this
6 section may subject the horsemen's organization to a fine not to
7 exceed $10,000 per violation] transferred monthly to the
8 Property Tax Reduction Fund.
9 § 1407. Pennsylvania Gaming Economic Development and Tourism
10 Fund.
11 (a) Fund established.--There is hereby established a
12 Pennsylvania Gaming Economic Development and Tourism Fund within
13 the State Treasury.
14 (b) Fund administration and distribution.--The Pennsylvania
15 Gaming Economic Development and Tourism Fund shall be
16 administered by the [Department of Community and Economic
17 Development] State Treasurer. All moneys in the Pennsylvania
18 Gaming Economic Development and Tourism Fund shall be
19 [distributed pursuant to a subsequently enacted Economic
20 Development Capital Budget that appropriates money from the fund
21 pursuant to this section. The procedures for enactment,
22 authorization and release of economic development and tourism
23 funds authorized under this section for both capital projects
24 and operational expenditures shall be the same as those provided
25 for in sections 303(a), (b) and (c) and 318(a) of the act of
26 February 9, 1999 (P.L.1, No.1), known as the Capital Facilities
27 Debt Enabling Act, without reference to the nature or purpose of
28 the project, and any other statutory provision, if any,
29 necessary to effectuate the release of funds appropriated in
30 such economic development capital budget.
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1 (c) Pennsylvania Gaming Economic Development and Tourism
2 Fund Assessment.--Each licensed gaming entity shall pay a daily
3 assessment of 5% of its gross terminal revenue to the
4 Pennsylvania Gaming Economic Development and Tourism Fund.
5 (d) Restrictions on projects for certain counties and
6 cities.--For a ten-year period beginning with the first fiscal
7 year during which deposits are made into this fund, no moneys
8 from the Pennsylvania Gaming Economic Development and Tourism
9 Fund shall be distributed for any project located in a city or
10 county of the first or second class except as authorized by this
11 subsection. Moneys not used for the authorized projects in
12 cities and counties of the first and second classes may be used
13 throughout this Commonwealth. Moneys from the fund for projects
14 within cities and counties of the first and second classes may
15 only be used for the following projects during this ten-year
16 period:
17 (1) for reimbursement to a city of the first class for
18 debt service made by such city to the extent that such
19 payments have been made for the expansion of the Pennsylvania
20 Convention Center;
21 (2) for distribution to the General Fund to the extent
22 that the Commonwealth has made debt service payments for the
23 expansion of the Pennsylvania Convention Center;
24 (3) for reimbursement to a city of the first class for
25 payments made by such city for the operation expenses of the
26 Pennsylvania Convention Center during the prior calendar
27 year;
28 (4) for debt service and for development and economic
29 development projects for an international airport located in
30 a county of the second class;
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1 (5) for distribution to a community infrastructure
2 development fund of a county of the second class to fund
3 construction, development, improvement and maintenance of
4 infrastructure projects;
5 (6) for the retirement of the indebtedness of an urban
6 redevelopment authority created pursuant to the act of May
7 24, 1945 (P.L.991, No.385), known as the Urban Redevelopment
8 Law, in a city of the second class which is financed in part
9 with the utilization of funds transferred to the regional
10 asset district pursuant to Article XXXI-B of the act of July
11 28, 1953 (P.L.723, No.230), known as the Second Class County
12 Code;
13 (7) for retirement of indebtedness and for financing of
14 a hotel or convention center in a city of the second class
15 established pursuant to the authority of the act of July 29,
16 1953 (P.L.1034, No.270), known as the Public Auditorium
17 Authorities Law;
18 (8) for retirement of indebtedness of a county of the
19 second class development fund created pursuant to the
20 authority of Article XXXI-B of the Second Class County Code
21 and the Urban Redevelopment Law;
22 (9) for retirement of indebtedness of a convention
23 center in a city of the second class established pursuant to
24 the authority of the Public Auditorium Authorities Law;
25 (10) for payment of the operating deficit for the
26 operation of a convention center in a city of the second
27 class established pursuant to the Public Auditorium
28 Authorities Law.] transferred monthly to the Property Tax
29 Reduction Fund.
30 § 1408. Transfers from State Gaming Fund.
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1 [(a) Transfer for compulsive problem gambling treatment.--
2 Each year, the sum of $1,500,000 or an amount equal to .001
3 multiplied by the total gross terminal revenue of all active and
4 operating licensed gaming entities, whichever is greater, shall
5 be transferred into the Compulsive Problem Gambling Treatment
6 Fund established in section 1509 (relating to compulsive and
7 problem gambling program).
8 (b) Transfer for Volunteer Fire Company Grant Program.--
9 Annually, the sum of $25,000,000 shall be transferred from the
10 State Gaming Fund to the Volunteer Fire Company Grant Program
11 established under the act of July 31, 2003 (P.L.73, No.17),
12 known as the Volunteer Fire Company and Volunteer Ambulance
13 Service Grant Act.
14 (c) Local law enforcement grants.--Annually, the sum of
15 $5,000,000 shall be transferred to the board for the purpose of
16 issuing grants to local law enforcement agencies to enforce and
17 prevent the unlawful operation of slot machines in this
18 Commonwealth.
19 (d) Annual transfers.--Annually, the following sums shall be
20 transferred from the State Gaming Fund as follows:
21 (1) To each county, 80¢ per acre for each acre of land
22 in the county for which a payment is made under the act of
23 May 17, 1929 (P.L.1798, No.591), referred to as the Forest
24 Reserves Municipal Financial Relief Law, or under 34 Pa.C.S.
25 § 708 (relating to payments in lieu of taxes).
26 (2) To each school district, 80¢ per acre for each acre
27 of land in the school district for which a payment is made
28 under the Forest Reserves Municipal Financial Relief Law or
29 under 34 Pa.C.S. § 708.
30 (3) To each township, 80¢ per acre for each acre of land
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1 in the township for which a payment is made under the Forest
2 Reserves Municipal Financial Relief Law or under 34 Pa.C.S. §
3 708.
4 (e) Transfer to Property Tax Relief Fund.--]Monthly, the
5 State Treasurer shall transfer the remaining balance in the
6 State Gaming Fund [which is not allocated in subsections (a),
7 (b), (c) and (d)] to the Property Tax [Relief] Reduction Fund
8 established in section 1409 (relating to Property Tax [Relief]
9 Reduction Fund).
10 § 1409. Property Tax [Relief] Reduction Fund.
11 (a) Establishment.--There is hereby established in the State
12 Treasury a special fund to be known as the Property Tax [Relief]
13 Reduction Fund, which shall receive money from the State Gaming
14 Fund and any other money from any source designated for deposit
15 in the Property Tax [Relief] Reduction Fund.
16 (b) Use of money.--Money in the Property Tax [Relief]
17 Reduction Fund shall be used for local property and wage tax
18 relief as specified by law and is hereby appropriated.
19 Section 2. This act shall take effect immediately.
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