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Establishment of State Gaming Fund and net slot machine revenue distribution - 4 Pa. Cons. Stat. § 1403Legal Research Home > Pennsylvania Statutes Sponsored Links
§ 1403. Establishment of State Gaming Fund and net slot machine
revenue distribution.
(a) Fund established.--There is hereby established the State
Gaming Fund within the State Treasury.
(b) Slot machine tax.--The department shall determine and
each slot machine licensee shall pay a daily tax of 34% from its
daily gross terminal revenue from the slot machines in operation
at its facility and a local share assessment as provided in
subsection (c) into the fund. All funds owed to the Commonwealth
or a municipality under this section shall be held in trust by
the licensed gaming entity until the funds are paid or
transferred and distributed. Unless otherwise agreed to by the
Gaming Board, a licensed gaming entity shall establish a
separate bank account to maintain gaming proceeds until such
time as they are paid or transferred under this section.
(c) Transfers and distributions.--The department shall:
(1) Transfer the slot machine tax and assessment imposed
in subsection (b) to the fund.
(2) From the local share assessment established in
subsection (b), make quarterly distributions among the
counties hosting a licensed facility in accordance with the
following schedule:
(i) If the licensed facility is a Category 1
licensed facility that is located at a harness racetrack
and the county, including a home rule county, in which
the licensed facility is located is:
(A) A county of the first class: 4% of the
gross terminal revenue to the county hosting the
licensed facility from each such licensed facility.
Notwithstanding any other provision to the contrary,
funds from licensed gaming entities located within a
county of the first class shall not be distributed
outside of a county of the first class.
(B) A county of the second class: 2% of the
gross terminal revenue to the county hosting the
licensed facility from each such licensed facility.
(C) A county of the second class A: 1% of the
gross terminal revenue to the county hosting the
licensed facility from each such licensed facility.
An additional 1% of the gross terminal revenue to the
county hosting the licensed facility from each such
licensed facility for the purpose of municipal grants
within the county in which the licensee is located.
(D) (I) A county of the third class: Except as
provided in subclause (II), 2% of the gross
terminal revenue from each such licensed facility
shall be deposited into a restricted account
established in the Department of Community and
Economic Development to be used exclusively for
grants for health, safety and economic
development projects to municipalities within the
county where the licensed facility is located.
Municipalities that are contiguous to the
municipality hosting such licensed facility shall
be given priority by the Department of Community
and Economic Development in the award of such
grants.
(II) If a licensed facility is located in
one of two counties of the third class where a
city of the third class is located in both
counties of the third class, the county in which
the licensed facility is located shall receive
1.2% of the gross terminal revenue to be
distributed as follows: 20% to the host city,
30% to the host county and 50% to the host county
for the purpose of making municipal grants within
the county, with priority given to municipalities
contiguous to the host city. The county of the
third class, which includes a city of the third
class that is located in two counties of the
third class and is not the host county for the
licensed facility, shall receive .8% of the gross
terminal revenue to be distributed as follows:
60% to a nonhost city of the third class located
solely in the nonhost county in which the host
city of the third class is also located or 60% to
the nonhost city of the third class located both
in the host and nonhost counties of the third
class, 35% to the nonhost county and 5% to the
nonhost county for the purpose of making
municipal grants within the county.
(E) A county of the fourth class: 2% of the
gross terminal revenue from each such licensed
facility shall be deposited into a restricted account
established in the Department of Community and
Economic Development to be used exclusively for
grants to the county, to economic development
authorities or redevelopment authorities within the
county for grants for economic development projects,
job training, community improvement projects, other
projects in the public interest and reasonable
administrative costs. Notwithstanding the provisions
of the act of February 9, 1999 (P.L.1, No.1), known
as the Capital Facilities Debt Enabling Act, grants
made under this clause may be utilized as local
matching funds for other grants or loans from the
Commonwealth.
(F) Counties of the fifth through eighth
classes: 2% of the gross terminal revenue from each
such licensed facility shall be deposited into a
restricted account established in the Department of
Community and Economic Development to be used
exclusively for grants to the county.
(G) Any county not specifically enumerated in
clauses (A) through (F), 2% of the gross terminal
revenue to the county hosting the licensed facility
from each such licensed facility.
(ii) If the licensed facility is a Category 1
licensed facility and is located at a thoroughbred
racetrack and the county in which the licensed facility
is located is:
(A) A county of the first class: 4% of the
gross terminal revenue to the county hosting the
licensed facility from each such licensed facility.
Notwithstanding any other provision to the contrary,
funds from licensed gaming entities located within
the county of the first class shall not be
distributed outside of a county of the first class.
(B) A county of the second class: 2% of the
gross terminal revenue to the county hosting the
licensed facility from each such licensed facility.
(C) A county of the second class A: 1% of the
gross terminal revenue to the county hosting the
licensed facility from each such licensed facility.
An additional 1% of the gross terminal revenue to the
county hosting the licensed facility from each such
licensed facility for the purpose of municipal grants
within the county in which the licensee is located.
(D) A county of the third class: 1% of the
gross terminal revenue to the county hosting the
licensed facility from each such licensed facility.
An additional 1% of the gross terminal revenue to the
county hosting the licensed facility from each such
licensed facility for the purpose of municipal grants
within the county in which the licensee is located.
(E) A county of the fourth class: 2% of the
gross terminal revenue from each such licensed
facility shall be deposited into a restricted account
established in the Department of Community and
Economic Development to be used exclusively for
grants to the county, to economic development
authorities or redevelopment authorities within the
county for grants for economic development projects,
community improvement projects, job training, other
projects in the public interest and reasonable
administrative costs. Notwithstanding the Capital
Facilities Debt Enabling Act, grants made under this
clause may be utilized as local matching funds for
other grants or loans from the Commonwealth.
(F) Counties of the fifth through eighth
classes: 2% of the gross terminal revenue from each
such licensed facility shall be deposited into a
restricted account established in the Department of
Community and Economic Development to be used
exclusively for grants to the county.
(G) Any county not specifically enumerated in
clauses (A) through (F), 2% of the gross terminal
revenue to the county hosting the licensed facility
from each such licensed facility.
(iii) If the facility is a Category 2 licensed
facility and if the county in which the licensed facility
is located is:
(A) A county of the first class: 4% of the
gross terminal revenue to the county hosting the
licensed facility from each such licensed facility.
Notwithstanding any other provision to the contrary,
funds from licensed gaming entities located within a
county of the first class shall not be distributed
outside of a county of the first class. The first
$5,000,000 of the total amount distributed annually
to the county of the first class shall be distributed
to the Philadelphia School District.
(B) A county of the second class: 2% of the
gross terminal revenue to the county hosting the
licensed facility from each such licensed facility.
(C) A county of the second class A: 1% of the
gross terminal revenue to the county hosting the
licensed facility from each such licensed facility.
An additional 1% of the gross terminal revenue to the
county hosting the licensed facility from each such
licensed facility for the purpose of municipal grants
within the county in which the licensee is located.
(D) A county of the third class: 1% of the
gross terminal revenue to the county hosting the
licensed facility from each such licensed facility.
An additional 1% of the gross terminal revenue to the
county hosting the licensed facility from each such
licensed facility for the purpose of municipal grants
within the county in which the licensee is located.
(D.1) If a licensed facility is located in one
of two counties of the third class where a city of
the third class is located in both counties of the
third class, the county in which the licensed
facility is located shall receive 1.2% of the gross
terminal revenue to be distributed as follows: 20%
to the host city, 30% to the host county and 50% to
the host county for the purpose of making municipal
grants within the county, with priority given to
municipalities contiguous to the host city. The
county of the third class, which includes a city of
the third class that is located in two counties of
the third class and is not the host county for the
licensed facility, shall receive .8% of the gross
terminal revenue to be distributed as follows: 60%
to a nonhost city of the third class located solely
in the nonhost county in which the host city of the
third class is also located or 60% to the nonhost
city of the third class located both in the host and
nonhost counties of the third class, 35% to the
nonhost county and 5% to the nonhost county for the
purpose of making municipal grants within the county.
(E) A county of the fourth class: 2% of the
gross terminal revenue from each such licensed
facility shall be deposited into a restricted account
established in the Department of Community and
Economic Development to be used exclusively for
grants to the county, to economic development
authorities or redevelopment authorities within the
county for grants for economic development projects,
community improvement projects, job training, other
projects in the public interest and reasonable
administrative costs. Notwithstanding the Capital
Facilities Debt Enabling Act, grants made under this
clause may be utilized as local matching funds for
other grants or loans from the Commonwealth.
(F) Counties of the fifth class: 2% of the
gross terminal revenue from each such licensed
facility shall be deposited and distributed as
follows:
(I) One percent shall be deposited into a
restricted receipts account in the Department of
Community and Economic Development to be used
exclusively for grants within the county for
economic development projects, community
improvement projects and other projects in the
public interest within the county. The amount
under this subclause includes reasonable
administrative costs.
(II) One percent shall be deposited into a
restricted receipts account in the Department of
Community and Economic Development to be used
exclusively for grants within contiguous counties
for economic development projects, community
improvement projects and other projects in the
public interest within contiguous counties. The
amount under this subclause includes reasonable
administrative costs.
(III) Fifty percent of any revenue required
to be transferred under paragraph (3)(v) shall be
deposited into the restricted receipts account
established under subclause (I), and 50% shall be
deposited into the restricted receipt account
established under subclause (II). Notwithstanding
the Capital Facilities Debt Enabling Act, grants
made under this clause may be utilized as local
matching funds for other grants or loans from the
Commonwealth.
(G) Any county not specifically enumerated in
clauses (A) through (F), 2% of the gross terminal
revenue to the county hosting the licensed facility
from each such licensed facility.
(iv) If the facility is a Category 3 licensed
facility, 2% of the gross terminal revenue from each such
licensed facility shall be deposited into a restricted
account established in the Department of Community and
Economic Development to be used exclusively for grants to
the county, to economic development authorities or
redevelopment authorities within the county for grants
for economic development projects and community
improvement projects.
(v) Unless otherwise specified, for the purposes of
this paragraph money designated for municipal grants
within a county, other than a county of the first class,
in which a licensed facility is located shall be used to
fund grants to the municipality in which the licensed
facility is located, to the county in which the licensed
facility is located and to the municipalities which are
contiguous to the municipality in which the licensed
facility is located and which are located within the
county in which the licensed facility is located. Grants
shall be administered by the county through its economic
development or redevelopment authority in which the
licensed facility is located. Grants shall be used to
fund the costs of human services, infrastructure
improvements, facilities, emergency services, health and
public safety expenses associated with licensed facility
operations. If at the end of a fiscal year uncommitted
funds exist, the county shall pay to the economic
development or redevelopment authority of the county in
which the licensed facility is located the uncommitted
funds.
(vi) If the licensed facility is located in more
than one county, the amount available shall be
distributed on a pro rata basis determined by the
percentage of acreage located in each county to the total
acreage of all counties occupied by the licensed
facility.
(vii) The distributions provided in this paragraph
shall be based upon county classifications in effect on
the effective date of this section. Any reclassification
of counties as a result of a Federal decennial census or
of a State statute shall not apply to this subparagraph.
(viii) If any provision of this paragraph is found
to be unenforceable for any reason, the distribution
provided for in the unenforceable provision shall be made
to the county in which the licensed facility is located
for the purposes of grants to municipalities in that
county, including municipal grants as specified in
subparagraph (v).
(ix) Nothing in this paragraph shall prevent any of
the above counties which directly receive a distribution
under this section from entering into intergovernmental
cooperative agreements with other jurisdictions for
sharing this money.
(3) From the local share assessment established in
subsection (b), make quarterly distributions among the
municipalities, including home rule municipalities, hosting a
licensed facility in accordance with the following schedule:
(i) To a city of the second class hosting a licensed
facility, other than a Category 3 licensed facility, 2%
of the gross terminal revenue or $10,000,000 annually,
whichever is greater, shall be paid by each licensed
gaming entity operating a facility located in that city.
In the event that the revenues generated by the 2% do not
meet the $10,000,000 minimum specified in this
subparagraph, the department shall collect the remainder
of the minimum amount of $10,000,000 from each licensed
gaming entity operating a facility in the city and
deposit that amount in the city treasury.
(ii) To a city of the second class A hosting a
licensed facility, other than a Category 3 licensed
facility, 2% of the gross terminal revenue or $10,000,000
annually, whichever is greater, shall be paid by each
licensed entity operating a licensed facility located in
that city, subject, however, to the budgetary limitation
in this subparagraph. The amount allocated to the
designated municipalities shall not exceed 50% of their
total budget for fiscal year 2003-2004, adjusted for
inflation in subsequent years by an amount not to exceed
an annual cost-of-living adjustment calculated by
applying the percentage change in the Consumer Price
Index immediately prior to the date the adjustment is due
to take effect. Any remaining moneys shall be collected
by the department from each licensed gaming entity and
distributed in accordance with paragraph (2) based upon
the classification of county where the licensed facility
is located. In the event that the revenues generated by
the 2% do not meet the $10,000,000 minimum specified in
this subparagraph, the department shall collect the
remainder of the minimum amount of $10,000,000 from each
licensed gaming entity operating a facility in the city,
pay any balance due to the city and transfer any
remainder in accordance with paragraph (2).
(iii) To a city of the third class hosting a
licensed facility, other than a Category 3 licensed
facility, 2% of the gross terminal revenue or $10,000,000
annually, whichever is greater, shall be paid by each
licensed gaming entity operating a licensed facility
located in that city, subject, however, to the budgetary
limitation in this subparagraph. In the event that the
city has a written agreement with a licensed gaming
entity executed prior to the effective date of this part,
the amount paid under the agreement to the city shall be
applied and credited to the difference between 2% of the
gross terminal revenue and the $10,000,000 owed under
this subparagraph if the 2% of the gross terminal revenue
is less than $10,000,000. If 2% of the gross terminal
revenue is greater than the $10,000,000 required to be
paid under this subparagraph, the credit shall not apply.
The amount of gross terminal revenue required to be paid
pursuant to the agreement shall be deemed to be gross
terminal revenue for purposes of this subparagraph. The
amount allocated to the designated municipalities shall
not exceed 50% of their total budget for fiscal year
2003-2004, adjusted for inflation in subsequent years by
an amount not to exceed an annual cost-of-living
adjustment calculated by applying the percentage change
in the Consumer Price Index immediately prior to the date
the adjustment is due to take effect. Any remaining
moneys shall be collected by the department from each
licensed gaming entity and distributed in accordance with
paragraph (2) based upon the classification of county
where the licensed facility is located. In the event that
the revenues generated by the 2% do not meet the
$10,000,000 minimum specified in this subparagraph, the
department shall collect the remainder of the minimum
amount of $10,000,000 from each licensed gaming entity
operating a facility, pay any balance due to the city of
the third class and transfer any remainder in accordance
with paragraph (2).
(iii.1) If a licensed facility is located in a city
of the third class and the city is located in more than
one county of the third class, 2% of the gross terminal
revenue or $10,000,000 annually, whichever is greater,
shall be distributed as follows: 80% to the host city
and 20% to the city of the third class located solely in
a nonhost county in which the host city of the third
class is also located. If a licensed facility is located
in a city of the third class and that city is located
solely in a host county of the third class in which a
nonhost city of the third class is also located, 2% of
gross terminal revenue or $10,000,000 annually, whichever
is greater, shall be distributed as follows: 80% to the
host city and 20% to a city of the third class located
both in a nonhost county of the third class and in a host
county of the third class in which the host city of the
third class is located.
(iv) To a township of the first class hosting a
licensed facility, other than a Category 3 licensed
facility, 2% of the gross terminal revenue or $10,000,000
annually, whichever is greater, shall be paid by each
licensed gaming entity operating a licensed facility
located in the township subject, however, to the
budgetary limitation in this subparagraph. The amount
allocated to the designated municipalities shall not
exceed 50% of their total budget for fiscal year 2003-
2004, adjusted for inflation in subsequent years by an
amount not to exceed an annual cost-of-living adjustment
calculated by applying the percentage change in the
Consumer Price Index immediately prior to the date the
adjustment is due to take effect. Any remaining money
shall be collected by the department from each licensed
gaming entity and distributed in accordance with
paragraph (2) based upon the classification of county
where the licensed facility is located. In the event that
the revenues generated by the 2% do not meet the
$10,000,000 minimum specified in this subparagraph, the
department shall collect the remainder of the minimum
amount of $10,000,000 from each licensed gaming entity
operating a licensed facility in the township, pay any
balance due to the township and transfer any remainder in
accordance with paragraph (2).
(v) To a township of the second class hosting a
licensed facility, other than a Category 3 licensed
facility, 2% of the gross terminal revenue or $10,000,000
annually, whichever is greater, shall be paid by each
licensed gaming entity operating a licensed facility
located in the township, subject, however, to the
budgetary limitation in this subparagraph. The amount
allocated to the designated municipalities shall not
exceed 50% of their total budget for fiscal year 2003-
2004, adjusted for inflation in subsequent years by an
amount not to exceed an annual cost-of-living adjustment
calculated by applying the percentage change in the
Consumer Price Index immediately prior to the date the
adjustment is due to take effect. Any remaining money
shall be collected by the department from each licensed
gaming entity and distributed in accordance with
paragraph (2) based upon the classification of county
where the licensed facility is located. Where the
licensed facility is other than a Category 3 and is
located in more than one second class township, the
county commissioners of the county of the third class in
which the facility is located shall appoint an advisory
committee for the purpose of advising the county as to
the need for municipal grants for health, safety,
transportation and other projects in the public interest
to be comprised of two individuals from the host
municipality, two from contiguous municipalities within
the county of the third class and one from the host
county. A county other than a county of the third class
in which the licensed facility is located is not required
to appoint an advisory committee and may use funds
received under this subparagraph for purposes other than
municipal grants. In the event that the revenues
generated by the 2% do not meet the $10,000,000 minimum
specified in this subparagraph, the department shall
collect the remainder of the minimum amount of
$10,000,000 from each licensed gaming entity operating a
licensed facility in the township, pay any balance due to
the township and transfer any remainder in accordance
with paragraph (2).
(vi) To a borough hosting a licensed facility, other
than a Category 3 licensed facility, 2% of the gross
terminal revenue or $10,000,000 annually, whichever is
greater, shall be paid by each licensed gaming entity
operating a licensed facility located in that borough,
subject, however, to the budgetary limitation in this
subparagraph. The amount allocated to the designated
municipalities shall not exceed 50% of their total budget
for fiscal year 2003-2004, adjusted for inflation in
subsequent years by an amount not to exceed an annual
cost-of-living adjustment calculated by applying the
percentage change in the Consumer Price Index immediately
prior to the date the adjustment is due to take effect.
Any remaining money shall be collected by the department
from each licensed gaming entity and distributed in
accordance with paragraph (2) based upon the
classification of county where the licensed facility is
located. In the event that the revenues generated by the
2% do not meet the $10,000,000 minimum specified in this
subparagraph, the department shall collect the remainder
of the minimum amount of $10,000,000 from each licensed
gaming entity operating a licensed facility in the
borough, pay any balance due to the borough and transfer
any remainder in accordance with paragraph (2).
(vii) To an incorporated town hosting a licensed
facility, other than a Category 3 licensed facility, 2%
of the gross terminal revenue or $10,000,000 annually,
whichever is greater, shall be paid by each licensed
entity operating a licensed facility located in the town,
subject, however, to the budgetary limitation in this
subparagraph. The amount allocated to the designated
municipalities shall not exceed 50% of their total budget
for fiscal year 2003-2004, adjusted for inflation in
subsequent years by an amount not to exceed an annual
cost-of-living adjustment calculated by applying the
percentage change in the Consumer Price Index immediately
prior to the date the adjustment is due to take effect.
Any remaining money shall be collected by the department
from each licensed gaming entity and distributed in
accordance with paragraph (2) based upon the
classification of county where the licensed facility is
located. In the event that the revenues generated by the
2% do not meet the $10,000,000 minimum specified in this
subparagraph, the department shall collect the remainder
of the minimum amount of $10,000,000 from each licensed
gaming entity operating a licensed facility in the
incorporated town, pay any balance due to the town and
transfer any remainder in accordance with paragraph (2).
(viii) To a municipality of any class hosting a
Category 3 facility, 2% of the gross terminal revenue
from the Category 3 licensed facility located in the
municipality, subject, however, to the budgetary
limitation in this subparagraph. The amount allocated to
the designated municipalities shall not exceed 50% of
their total budget for fiscal year 2003-2004, adjusted
for inflation in subsequent years by an amount not to
exceed an annual cost-of-living adjustment calculated by
applying the percentage change in the Consumer Price
Index immediately prior to the date the adjustment is due
to take effect. Any remaining money shall be collected by
the department from each licensed gaming entity and
distributed in accordance with paragraph (2) based upon
the classification of county where the licensed facility
is located.
(ix) Any municipality not specifically enumerated
in subparagraphs (i) through (viii), 2% of the gross
terminal revenue to the municipality hosting the licensed
facility from each such licensed facility.
(x) If the licensed facility is located in more than
one municipality, the amount available shall be
distributed on a pro rata basis determined by the
percentage of acreage located in each municipality to the
total acreage of all municipalities occupied by the
licensed facility.
(xi) If the licensed facility is located at a resort
which is also an incorporated municipality, such
municipality shall not be eligible to receive any
distribution under this paragraph. The distribution it
would have otherwise been entitled to under this
paragraph shall instead be distributed in accordance with
paragraph (2) based upon the county where the licensed
facility is located.
(xii) The distributions provided in this paragraph
shall be based upon municipal classifications in effect
on the effective date of this section. For the purposes
of this paragraph, any reclassification of municipalities
as a result of a Federal decennial census or of a State
statute shall not apply to this paragraph.
(xiii) If any provision of this paragraph is found
to be unenforceable for any reason, the distribution
provided for in such unenforceable provision shall be
made to the municipality in which the licensed facility
is located.
(xiv) Nothing in this paragraph shall prevent any of
the above municipalities from entering into
intergovernmental cooperative agreements with other
jurisdictions for sharing this money.
(xv) Notwithstanding any other law, agreement or
provision in this part to the contrary, all revenues
provided, directed or earmarked under this section to or
for the benefit of a city of the second class in which an
intergovernmental cooperation authority has been
established and is in existence pursuant to the act of
February 12, 2004 (P.L.73, No.11), known as the
Intergovernmental Cooperation Authority Act for Cities of
the Second Class, shall be directed to and under the
exclusive control of such intergovernmental cooperation
authority to be used:
(A) to reduce the debt of the second class city;
(B) to increase the level of funding of the
municipal pension funds of the second class city; or
(C) for any other purposes as determined to be
in the best interest of the second class city by such
intergovernmental cooperation authority. Such
revenues shall not be directed to or under the
control of such city of the second class or any
coordinator appointed pursuant to the act of July 10,
1987 (P.L.246, No.47), known as the Municipalities
Financial Recovery Act, for such city of the second
class.
(d) Consumer Price Index.--For purposes of subsection (c),
references to the Consumer Price Index shall mean the Consumer
Price Index for All Urban Consumers for the Pennsylvania, New
Jersey, Delaware and Maryland area for the most recent 12-month
period for which figures have been officially reported by the
United States Department of Labor, Bureau of Labor Statistics.
(Nov. 1, 2006, P.L.1243, No.135, eff. imd.)
2006 Amendment. Act 135 amended subsecs. (b) and
(c)(2)(i)(D) and (E), (ii)(E), (iii)(A), (E) and (F), (iv) and
(ix) and (3)(i), (iii), (ii), (iii), (iv), (v), (vi), (vii) and
(viii) and added subsecs. (c)(2)(iii)(D.1) and (3)(iii.1) and
(d).
Cross References. Section 1403 is referred to in sections
1103, 1208, 1209, 1313 of this title.
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Last modified: November 27, 2007 |