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                                                      PRINTER'S NO. 1540

THE GENERAL ASSEMBLY OF PENNSYLVANIA


SENATE BILL

No. 1244 Session of 1989


        INTRODUCED BY REGOLI, JONES, REIBMAN, WILLIAMS, LEWIS, STOUT,
           BELAN, MUSTO, HELFRICK, DAWIDA, O'PAKE, PORTERFIELD, MELLOW,
           SALVATORE AND BODACK, SEPTEMBER 26, 1989

        REFERRED TO AGING AND YOUTH, SEPTEMBER 26, 1989

                                     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 payments from the State Lottery Fund to
     8     support an optical assistance program; and making editorial
     9     changes.

    10     The General Assembly of the Commonwealth of Pennsylvania
    11  hereby enacts as follows:
    12     Section 1.  Sections 2, 6(a)(11) and 12 of the act of August
    13  26, 1971 (P.L.351, No.91), known as the State Lottery Law,
    14  amended October 17, 1980 (P.L.1088, No.184), are amended to
    15  read:
    16     Section 2.  Statement of Purpose.--This act is enacted to
    17  establish a lottery to be operated by the State, the net
    18  proceeds of which are to be used after June 30, 1972 for the
    19  purposes of providing property tax relief for the elderly for
    20  taxes paid in 1971 and thereafter to persons sixty-five years of
    21  age or older and for providing certain free fixed route local

     1  transit services to persons sixty-five years of age or older and
     2  reduced fare on group ride transit service to persons sixty-five
     3  years of age or older. The net proceeds shall also be used for
     4  the support of an optical assistance program pursuant to the act
     5  of              (P.L.    , No.   ), known as the "Optical
     6  Assistance to the Aged Act." It is further intended to provide a
     7  means through which to curb illegal gambling operations in
     8  Pennsylvania.
     9     Section 6.  Powers and Duties of the Secretary of Revenue.--
    10  (a)  In addition to the powers and duties provided by law and
    11  "The Administrative Code of 1929," the Secretary of Revenue
    12  shall have the power and it shall be his duty to operate and
    13  administer the lottery, and to promulgate rules and regulations
    14  governing the establishment and operation thereof, including but
    15  not limited to:
    16     * * *
    17     (11)  The apportionment of the total revenues accruing from
    18  the sale of lottery tickets or shares and from all other sources
    19  among (i) the payment of prizes to the holders of winning
    20  tickets or shares; (ii) the payment of costs incurred in the
    21  operation and administration of the lottery, including the
    22  expenses of the division and the costs resulting from any
    23  contract or contracts entered into for promotional, advertising
    24  or operational services or for the purchase or lease of lottery
    25  equipment and materials; (iii) for the repayment of the moneys
    26  appropriated to the State Lottery Fund pursuant to section 16 of
    27  this act; and (iv) for property tax relief [and], free or
    28  reduced fare transit service and optical assistance for the
    29  elderly as provided in section 12 of this act: Provided,
    30  however, That no less than thirty per cent of the total revenues
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     1  accruing from the sale of lottery tickets or shares shall be
     2  dedicated to subclause (iv) above.
     3     * * *
     4     Section 12.  Disposition of Funds from Sale of Tickets or
     5  Shares.--(a)  All moneys received from the operation of the
     6  State lottery shall be deposited in a State Lottery Fund which
     7  is hereby created. Such moneys shall be used to the extent
     8  necessary for the payment of lottery prizes but the amount so
     9  used shall not be less than forty per cent of the amount of
    10  which tickets or shares have been sold. All payments of lottery
    11  prizes and for expenses of operation of the lottery shall be
    12  made as provided by law. All moneys remaining after payment of
    13  prizes and operating expenses shall remain in the State Lottery
    14  Fund and shall be allocated for the purpose of providing
    15  property tax relief for the elderly for taxes paid in 1971 and
    16  thereafter pursuant to the provisions of the act of March 11,
    17  1971 (P.L.104, No.3), known as the ["Senior Citizens Property
    18  Tax or Rent Rebate and Older Persons Inflation Needs Act,"]
    19  "Senior Citizens Rebate and Assistance Act," and for the purpose
    20  of providing free or reduced fare transit service for the
    21  elderly pursuant to the act of January 22, 1968 (P.L.42, No.8),
    22  known as the ["Pennsylvania Urban Mass Transportation Assistance
    23  Law of 1967,"]"Pennsylvania Urban Mass Transportation Law," and
    24  the act of February 11, 1976 (P.L.14, No.10), known as the
    25  "Pennsylvania Rural and Intercity Common Carrier Surface
    26  Transportation Assistance [Act."] Act," and optical assistance
    27  to the elderly pursuant to the act of      (P.L.  , No.  ),
    28  known as the "Optical Assistance to the Aged Act." In the event
    29  sufficient funds are not available from the lottery receipts to
    30  meet the requirements of the act of March 11, 1971 (P.L.104,
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     1  No.3), known as the ["Senior Citizens Property Tax or Rent
     2  Rebate and Older Persons Inflation Needs Act,"] "Senior Citizens
     3  Rebate and Assistance Act," or for providing free or reduced
     4  fare transit service for the elderly under the act of January
     5  22, 1968 (P.L.42, No.8), known as the ["Pennsylvania Urban Mass
     6  Transportation Assistance Law of 1967,"] "Pennsylvania Urban
     7  Mass Transportation Law," and the act of February 11, 1976
     8  (P.L.14, No.10), known as the "Pennsylvania Rural and Intercity
     9  Common Carrier Surface Transportation Assistance Act," or
    10  optical assistance to the elderly pursuant to the act of 
    11                   (P.L.    , No.   ), known as the "Optical
    12  Assistance to the Aged Act," additional funds to fulfill these
    13  obligations, shall be appropriated from the General Fund for
    14  this purpose.
    15     (b)  The moneys in said State Lottery Fund shall be
    16  appropriated only:
    17     (1)  For the payment of prizes to the holders of winning
    18  lottery tickets or shares;
    19     (2)  For the expenses of the division in its operation of the
    20  lottery;
    21     (3)  For property tax relief [and], free or reduced fare
    22  transit service and optical assistance for the elderly as
    23  provided under section 12 of this act; and
    24     (4)  For transfer to the General Fund through June 30, 1972,
    25  and for the repayment to the General Fund of the amount
    26  appropriated to the fund pursuant to section 16 of this act.
    27     Section 2.  This act shall take effect January 1, 1990.


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