Act 71 Pennsylvania Gaming Law Part 6 of 9

1 ADMINISTRATIVE COSTS. NOTWITHSTANDING THE PROVISIONS
2 OF THE ACT OF FEBRUARY 9, 1999 (P.L.1, NO.1), KNOWN
3 AS THE CAPITAL FACILITIES DEBT ENABLING ACT, GRANTS
4 MADE UNDER THIS CLAUSE MAY BE UTILIZED AS LOCAL
5 MATCHING FUNDS FOR OTHER GRANTS OR LOANS FROM THE
6 COMMONWEALTH.
7 (F) COUNTIES OF THE FIFTH THROUGH EIGHTH
8 CLASSES: 2% OF THE GROSS TERMINAL REVENUE FROM EACH
9 SUCH LICENSED FACILITY SHALL BE DEPOSITED INTO A
10 RESTRICTED ACCOUNT ESTABLISHED IN THE DEPARTMENT OF
11 COMMUNITY AND ECONOMIC DEVELOPMENT TO BE USED
12 EXCLUSIVELY FOR GRANTS TO THE COUNTY.
13 (G) ANY COUNTY NOT SPECIFICALLY ENUMERATED IN
14 CLAUSES (A) THROUGH (F), 2% OF THE GROSS TERMINAL
15 REVENUE TO THE COUNTY HOSTING THE LICENSED FACILITY
16 FROM EACH SUCH LICENSED FACILITY.
17 (II) IF THE LICENSED FACILITY IS A CATEGORY 1
18 LICENSED FACILITY AND IS LOCATED AT A THOROUGHBRED
19 RACETRACK AND THE COUNTY IN WHICH THE LICENSED FACILITY
20 IS LOCATED IS:
21 (A) A COUNTY OF THE FIRST CLASS: 4% OF THE
22 GROSS TERMINAL REVENUE TO THE COUNTY HOSTING THE
23 LICENSED FACILITY FROM EACH SUCH LICENSED FACILITY.
24 NOTWITHSTANDING ANY OTHER PROVISION TO THE CONTRARY,
25 FUNDS FROM LICENSED GAMING ENTITIES LOCATED WITHIN
26 THE COUNTY OF THE FIRST CLASS SHALL NOT BE
27 DISTRIBUTED OUTSIDE OF A COUNTY OF THE FIRST CLASS.
28 (B) A COUNTY OF THE SECOND CLASS: 2% OF THE
29 GROSS TERMINAL REVENUE TO THE COUNTY HOSTING THE
30 LICENSED FACILITY FROM EACH SUCH LICENSED FACILITY.
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1 (C) A COUNTY OF THE SECOND CLASS A: 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 (D) A COUNTY OF THE THIRD CLASS: 1% OF THE
9 GROSS TERMINAL REVENUE TO THE COUNTY HOSTING THE
10 LICENSED FACILITY FROM EACH SUCH LICENSED FACILITY.
11 AN ADDITIONAL 1% OF THE GROSS TERMINAL REVENUE TO THE
12 COUNTY HOSTING THE LICENSED FACILITY FROM EACH SUCH
13 LICENSED FACILITY FOR THE PURPOSE OF MUNICIPAL GRANTS
14 WITHIN THE COUNTY IN WHICH THE LICENSEE IS LOCATED.
15 (E) A COUNTY OF THE FOURTH CLASS: 2% OF THE
16 GROSS TERMINAL REVENUE FROM EACH SUCH LICENSED
17 FACILITY SHALL BE DEPOSITED INTO A RESTRICTED ACCOUNT
18 ESTABLISHED IN THE DEPARTMENT OF COMMUNITY AND
19 ECONOMIC DEVELOPMENT TO BE USED EXCLUSIVELY FOR
20 GRANTS TO THE COUNTY, TO ECONOMIC DEVELOPMENT
21 AUTHORITIES OR ORGANIZATIONS WITHIN THE COUNTY OR
22 REDEVELOPMENT AUTHORITIES WITHIN THE COUNTY FOR
23 GRANTS FOR ECONOMIC DEVELOPMENT PROJECTS, COMMUNITY
24 IMPROVEMENT PROJECTS, JOB TRAINING, OTHER PROJECTS IN
25 THE PUBLIC INTEREST AND REASONABLE ADMINISTRATIVE
26 COSTS. NOTWITHSTANDING THE CAPITAL FACILITIES DEBT
27 ENABLING ACT, GRANTS MADE UNDER THIS CLAUSE MAY BE
28 UTILIZED AS LOCAL MATCHING FUNDS FOR OTHER GRANTS OR
29 LOANS FROM THE 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 (III) IF THE FACILITY IS A CATEGORY 2 LICENSED
11 FACILITY AND IF THE COUNTY IN WHICH THE LICENSED FACILITY
12 IS LOCATED IS:
13 (A) A COUNTY OF THE FIRST CLASS: 4% OF THE
14 GROSS TERMINAL REVENUE TO THE COUNTY HOSTING THE
15 LICENSED FACILITY FROM EACH SUCH LICENSED FACILITY.
16 NOTWITHSTANDING ANY OTHER PROVISION TO THE CONTRARY,
17 FUNDS FROM LICENSED GAMING ENTITIES LOCATED WITHIN
18 THE COUNTY OF THE FIRST CLASS SHALL NOT BE
19 DISTRIBUTED OUTSIDE OF A COUNTY OF THE FIRST CLASS.
20 (B) A COUNTY OF THE SECOND CLASS: 2% OF THE
21 GROSS TERMINAL REVENUE TO THE COUNTY HOSTING THE
22 LICENSED FACILITY FROM EACH SUCH LICENSED FACILITY.
23 (C) A COUNTY OF THE SECOND CLASS A: 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 (D) A COUNTY OF THE THIRD CLASS: 1% OF THE
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1 GROSS TERMINAL REVENUE TO THE COUNTY HOSTING THE
2 LICENSED FACILITY FROM EACH SUCH LICENSED FACILITY.
3 AN ADDITIONAL 1% OF THE GROSS TERMINAL REVENUE TO THE
4 COUNTY HOSTING THE LICENSED FACILITY FROM EACH SUCH
5 LICENSED FACILITY FOR THE PURPOSE OF MUNICIPAL GRANTS
6 WITHIN THE COUNTY IN WHICH THE LICENSEE IS LOCATED.
7 (E) A COUNTY OF THE FOURTH CLASS: 2% OF THE
8 GROSS TERMINAL REVENUE FROM EACH SUCH LICENSED
9 FACILITY SHALL BE DEPOSITED INTO A RESTRICTED ACCOUNT
10 ESTABLISHED IN THE DEPARTMENT OF COMMUNITY AND
11 ECONOMIC DEVELOPMENT TO BE USED EXCLUSIVELY FOR
12 GRANTS TO THE COUNTY, TO ECONOMIC DEVELOPMENT
13 AUTHORITIES OR ORGANIZATIONS WITHIN THE COUNTY OR
14 REDEVELOPMENT AUTHORITIES WITHIN THE COUNTY FOR
15 GRANTS FOR ECONOMIC DEVELOPMENT PROJECTS, COMMUNITY
16 IMPROVEMENT PROJECTS, JOB TRAINING, OTHER PROJECTS IN
17 THE PUBLIC INTEREST AND REASONABLE ADMINISTRATIVE
18 COSTS. NOTWITHSTANDING THE CAPITAL FACILITIES DEBT
19 ENABLING ACT, GRANTS MADE UNDER THIS CLAUSE MAY BE
20 UTILIZED AS LOCAL MATCHING FUNDS FOR OTHER GRANTS OR
21 LOANS FROM THE COMMONWEALTH.
22 (F) COUNTIES OF THE FIFTH THROUGH EIGHTH
23 CLASSES: 2% OF THE GROSS TERMINAL REVENUE FROM EACH
24 SUCH LICENSED FACILITY SHALL BE DEPOSITED INTO A
25 RESTRICTED ACCOUNT ESTABLISHED IN THE DEPARTMENT OF
26 COMMUNITY AND ECONOMIC DEVELOPMENT TO BE USED
27 EXCLUSIVELY FOR GRANTS TO THE COUNTY, TO CONTIGUOUS
28 COUNTIES, TO ECONOMIC DEVELOPMENT AUTHORITIES OR
29 ORGANIZATIONS WITHIN THE COUNTY OR CONTIGUOUS
30 COUNTIES OR REDEVELOPMENT AUTHORITIES WITHIN THE
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1 COUNTY OR CONTIGUOUS COUNTIES FOR GRANTS FOR ECONOMIC
2 DEVELOPMENT PROJECTS, COMMUNITY IMPROVEMENT PROJECTS,
3 OTHER PROJECTS IN THE PUBLIC INTEREST AND REASONABLE
4 ADMINISTRATIVE COSTS. NOTWITHSTANDING THE CAPITAL
5 FACILITIES DEBT ENABLING ACT, GRANTS MADE UNDER THIS
6 CLAUSE MAY BE UTILIZED AS LOCAL MATCHING FUNDS FOR
7 OTHER GRANTS OR LOANS FROM THE COMMONWEALTH.
8 (G) ANY COUNTY NOT SPECIFICALLY ENUMERATED IN
9 CLAUSES (A) THROUGH (F), 2% OF THE GROSS TERMINAL
10 REVENUE TO THE COUNTY HOSTING THE LICENSED FACILITY
11 FROM EACH SUCH LICENSED FACILITY.
12 (IV) IF THE FACILITY IS A CATEGORY 3 LICENSED
13 FACILITY, 2% OF THE GROSS TERMINAL REVENUE FROM EACH SUCH
14 LICENSED FACILITY SHALL BE DEPOSITED INTO A RESTRICTED
15 ACCOUNT ESTABLISHED IN THE DEPARTMENT OF COMMUNITY AND
16 ECONOMIC DEVELOPMENT TO BE USED EXCLUSIVELY FOR GRANTS TO
17 THE COUNTY, TO ECONOMIC DEVELOPMENT AUTHORITIES OR
18 ORGANIZATIONS WITHIN THE COUNTY OR REDEVELOPMENT
19 AUTHORITIES WITHIN THE COUNTY FOR GRANTS FOR ECONOMIC
20 DEVELOPMENT PROJECTS AND COMMUNITY IMPROVEMENT PROJECTS.
21 (V) UNLESS OTHERWISE SPECIFIED, FOR THE PURPOSES OF
22 THIS PARAGRAPH MONEY DESIGNATED FOR MUNICIPAL GRANTS
23 WITHIN A COUNTY, OTHER THAN A COUNTY OF THE FIRST CLASS,
24 IN WHICH A LICENSED FACILITY IS LOCATED SHALL BE USED TO
25 FUND GRANTS TO THE MUNICIPALITY IN WHICH THE LICENSED
26 FACILITY IS LOCATED, TO THE COUNTY IN WHICH THE LICENSED
27 FACILITY IS LOCATED AND TO THE MUNICIPALITIES WHICH ARE
28 CONTIGUOUS TO THE MUNICIPALITY IN WHICH THE LICENSED
29 FACILITY IS LOCATED AND WHICH ARE LOCATED WITHIN THE
30 COUNTY IN WHICH THE LICENSED FACILITY IS LOCATED. GRANTS
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1 SHALL BE ADMINISTERED BY THE COUNTY THROUGH ITS ECONOMIC
2 DEVELOPMENT OR REDEVELOPMENT AUTHORITY IN WHICH THE
3 LICENSED FACILITY IS LOCATED. GRANTS SHALL BE USED TO
4 FUND THE COSTS OF HUMAN SERVICES, INFRASTRUCTURE
5 IMPROVEMENTS, FACILITIES, EMERGENCY SERVICES, HEALTH AND
6 PUBLIC SAFETY EXPENSES ASSOCIATED WITH LICENSED FACILITY
7 OPERATIONS. IF AT THE END OF A FISCAL YEAR UNCOMMITTED
8 FUNDS EXIST, THE COUNTY SHALL PAY TO THE ECONOMIC
9 DEVELOPMENT OR REDEVELOPMENT AUTHORITY OF THE COUNTY IN
10 WHICH THE LICENSED FACILITY IS LOCATED THE UNCOMMITTED
11 FUNDS.
12 (VI) IF THE LICENSED FACILITY IS LOCATED IN MORE
13 THAN ONE COUNTY, THE AMOUNT AVAILABLE SHALL BE
14 DISTRIBUTED ON A PRO RATA BASIS DETERMINED BY THE
15 PERCENTAGE OF ACREAGE LOCATED IN EACH COUNTY TO THE TOTAL
16 ACREAGE OF ALL COUNTIES OCCUPIED BY THE LICENSED
17 FACILITY.
18 (VII) THE DISTRIBUTIONS PROVIDED IN THIS PARAGRAPH
19 SHALL BE BASED UPON COUNTY CLASSIFICATIONS IN EFFECT ON
20 THE EFFECTIVE DATE OF THIS SECTION. ANY RECLASSIFICATION
21 OF COUNTIES AS A RESULT OF A FEDERAL DECENNIAL CENSUS OR
22 OF A STATE STATUTE SHALL NOT APPLY TO THIS SUBPARAGRAPH.
23 (VIII) IF ANY PROVISION OF THIS PARAGRAPH IS FOUND
24 TO BE UNENFORCEABLE FOR ANY REASON, THE DISTRIBUTION
25 PROVIDED FOR IN THE UNENFORCEABLE PROVISION SHALL BE MADE
26 TO THE COUNTY IN WHICH THE LICENSED FACILITY IS LOCATED
27 FOR THE PURPOSES OF GRANTS TO MUNICIPALITIES IN THAT
28 COUNTY, INCLUDING MUNICIPAL GRANTS AS SPECIFIED IN
29 SUBPARAGRAPH (V).
30 (IX) NOTHING IN THIS PARAGRAPH SHALL PREVENT ANY OF
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1 THE ABOVE COUNTIES FROM ENTERING INTO INTERGOVERNMENTAL
2 COOPERATIVE AGREEMENTS WITH OTHER JURISDICTIONS FOR
3 SHARING THESE MONEY.
4 (3) FROM THE LOCAL SHARE ASSESSMENT ESTABLISHED IN
5 SUBSECTION (B), MAKE QUARTERLY DISTRIBUTIONS AMONG THE
6 MUNICIPALITIES, INCLUDING HOME RULE MUNICIPALITIES, HOSTING A
7 LICENSED FACILITY IN ACCORDANCE WITH THE FOLLOWING SCHEDULE:
8 (I) TO A CITY OF THE SECOND CLASS HOSTING A LICENSED
9 FACILITY OR FACILITIES, OTHER THAN A CATEGORY 3 LICENSED
10 FACILITY, 2% OF THE GROSS TERMINAL REVENUE OR $10,000,000
11 ANNUALLY, WHICHEVER IS GREATER, OF ALL LICENSED
12 FACILITIES LOCATED IN THAT CITY. IN THE EVENT THAT THE
13 REVENUES GENERATED BY THE 2% DO NOT MEET THE $10,000,000
14 MINIMUM SPECIFIED IN THIS PARAGRAPH, THE LICENSED GAMING
15 ENTITY OPERATING THE LICENSED FACILITY OR FACILITIES IN
16 THE CITY SHALL REMIT THE DIFFERENCE TO THE MUNICIPALITY.
17 (II) TO A CITY OF THE SECOND CLASS A HOSTING A
18 LICENSED FACILITY OR FACILITIES, OTHER THAN A CATEGORY 3
19 LICENSED FACILITY, 2% OF THE GROSS TERMINAL REVENUE OR
20 $10,000,000 ANNUALLY, WHICHEVER IS GREATER, OF ALL
21 LICENSED FACILITIES LOCATED IN THAT CITY SUBJECT,
22 HOWEVER, TO THE BUDGETARY LIMITATION IN THIS
23 SUBPARAGRAPH. THE AMOUNT ALLOCATED TO THE DESIGNATED
24 MUNICIPALITIES SHALL NOT EXCEED 50% OF THEIR TOTAL BUDGET
25 FOR FISCAL YEAR 2003-2004, ADJUSTED FOR INFLATION IN
26 SUBSEQUENT YEARS BY AN AMOUNT NOT TO EXCEED AN ANNUAL
27 COST-OF-LIVING ADJUSTMENT CALCULATED BY APPLYING THE
28 PERCENTAGE CHANGE IN THE CONSUMER PRICE INDEX FOR ALL
29 URBAN CONSUMERS FOR THE PENNSYLVANIA, NEW JERSEY,
30 DELAWARE AND MARYLAND AREA, FOR THE MOST RECENT 12-MONTH
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1 PERIOD FOR WHICH FIGURES HAVE BEEN OFFICIALLY REPORTED BY
2 THE UNITED STATES DEPARTMENT OF LABOR, BUREAU OF LABOR
3 STATISTICS, IMMEDIATELY PRIOR TO THE DATE THE ADJUSTMENT
4 IS DUE TO TAKE EFFECT. ANY REMAINING MONEYS SHALL BE
5 DISTRIBUTED IN ACCORDANCE WITH PARAGRAPH (2) BASED UPON
6 THE COUNTY WHERE THE LICENSED FACILITY OR FACILITIES IS
7 LOCATED. IN THE EVENT THAT THE REVENUES GENERATED BY THE
8 2% DO NOT MEET THE $10,000,000 MINIMUM SPECIFIED IN THIS
9 SUBPARAGRAPH, THE LICENSED GAMING ENTITY OPERATING THE
10 LICENSED FACILITY OR FACILITIES IN THE CITY SHALL REMIT
11 THE DIFFERENCE TO THE MUNICIPALITY.
12 (III) TO A CITY OF THE THIRD CLASS HOSTING A
13 LICENSED FACILITY OR FACILITIES, OTHER THAN A CATEGORY 3
14 LICENSED FACILITY, 2% OF THE GROSS TERMINAL REVENUE OR
15 $10,000,000 ANNUALLY, WHICHEVER IS GREATER, OF ALL
16 LICENSED FACILITIES LOCATED IN THAT CITY SUBJECT,
17 HOWEVER, TO THE BUDGETARY LIMITATION IN THIS
18 SUBPARAGRAPH. HOWEVER, THE FOREGOING LIMITATIONS SHALL
19 NOT APPLY, NOTWITHSTANDING ANY PROVISION TO THE CONTRARY,
20 IF THE LICENSED FACILITY OR FACILITIES HAVE EXECUTED A
21 WRITTEN AGREEMENT WITH THE CITY PRIOR TO THE EFFECTIVE
22 DATE OF THIS PART TO PROVIDE ADDITIONAL COMPENSATION TO
23 THE CITY IN EXCESS OF THE DIFFERENCE BETWEEN 2% OF THE
24 GROSS TERMINAL REVENUE AND $10,000,000. THE AMOUNT
25 ALLOCATED TO THE DESIGNATED MUNICIPALITIES SHALL NOT
26 EXCEED 50% OF THEIR TOTAL BUDGET FOR FISCAL YEAR 2003-
27 2004, ADJUSTED FOR INFLATION IN SUBSEQUENT YEARS BY AN
28 AMOUNT NOT TO EXCEED AN ANNUAL COST-OF-LIVING ADJUSTMENT
29 CALCULATED BY APPLYING THE PERCENTAGE CHANGE IN THE
30 CONSUMER PRICE INDEX FOR ALL URBAN CONSUMERS FOR THE
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1 PENNSYLVANIA, NEW JERSEY, DELAWARE AND MARYLAND AREA, FOR
2 THE MOST RECENT 12-MONTH PERIOD FOR WHICH FIGURES HAVE
3 BEEN OFFICIALLY REPORTED BY THE UNITED STATES DEPARTMENT
4 OF LABOR, BUREAU OF LABOR STATISTICS, IMMEDIATELY PRIOR
5 TO THE DATE THE ADJUSTMENT IS DUE TO TAKE EFFECT. ANY
6 REMAINING MONEYS SHALL BE DISTRIBUTED IN ACCORDANCE WITH
7 PARAGRAPH (2) BASED UPON THE COUNTY WHERE THE LICENSED
8 FACILITY OR FACILITIES IS LOCATED. IN THE EVENT THAT THE
9 REVENUES GENERATED BY THE 2% DO NOT MEET THE $10,000,000
10 MINIMUM SPECIFIED IN THIS SUBPARAGRAPH, THE LICENSED
11 GAMING ENTITY OPERATING THE LICENSED FACILITY OR
12 FACILITIES IN THE CITY SHALL REMIT THE DIFFERENCE TO THE
13 MUNICIPALITY.
14 (IV) TO A TOWNSHIP OF THE FIRST CLASS HOSTING A
15 LICENSED FACILITY OR FACILITIES, OTHER THAN A CATEGORY 3
16 LICENSED FACILITY, 2% OF THE GROSS TERMINAL REVENUE OR
17 $10,000,000 ANNUALLY, WHICHEVER IS GREATER, OF ALL
18 LICENSED FACILITIES LOCATED IN THE TOWNSHIP SUBJECT,
19 HOWEVER, TO THE BUDGETARY LIMITATION IN THIS
20 SUBPARAGRAPH. THE AMOUNT ALLOCATED TO THE DESIGNATED
21 MUNICIPALITIES SHALL NOT EXCEED 50% OF THEIR TOTAL BUDGET
22 FOR FISCAL YEAR 2003-2004, ADJUSTED FOR INFLATION IN
23 SUBSEQUENT YEARS BY AN AMOUNT NOT TO EXCEED AN ANNUAL
24 COST-OF-LIVING ADJUSTMENT CALCULATED BY APPLYING THE
25 PERCENTAGE CHANGE IN THE CONSUMER PRICE INDEX FOR ALL
26 URBAN CONSUMERS FOR THE PENNSYLVANIA, NEW JERSEY,
27 DELAWARE AND MARYLAND AREA, FOR THE MOST RECENT 12-MONTH
28 PERIOD FOR WHICH FIGURES HAVE BEEN OFFICIALLY REPORTED BY
29 THE UNITED STATES DEPARTMENT OF LABOR, BUREAU OF LABOR
30 STATISTICS, IMMEDIATELY PRIOR TO THE DATE THE ADJUSTMENT
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1 IS DUE TO TAKE EFFECT. ANY REMAINING MONEY SHALL BE
2 DISTRIBUTED IN ACCORDANCE WITH PARAGRAPH (2) BASED UPON
3 THE COUNTY WHERE THE LICENSED FACILITY OR FACILITIES IS
4 LOCATED. IN THE EVENT THAT THE REVENUES GENERATED BY THE
5 2% DO NOT MEET THE $10,000,000 MINIMUM SPECIFIED IN THIS
6 SUBPARAGRAPH, THE LICENSED GAMING ENTITY OPERATING THE
7 LICENSED FACILITY OR FACILITIES IN THE TOWNSHIP SHALL
8 REMIT THE DIFFERENCE TO THE MUNICIPALITY.
9 (V) TO A TOWNSHIP OF THE SECOND CLASS HOSTING A
10 LICENSED FACILITY OR FACILITIES, OTHER THAN A CATEGORY 3
11 LICENSED FACILITY, 2% OF THE GROSS TERMINAL REVENUE OR
12 $10,000,000 ANNUALLY, WHICHEVER IS GREATER, OF ALL
13 LICENSED FACILITIES LOCATED IN THE TOWNSHIP SUBJECT,
14 HOWEVER, TO THE BUDGETARY LIMITATION IN THIS
15 SUBPARAGRAPH. THE AMOUNT ALLOCATED TO THE DESIGNATED
16 MUNICIPALITIES SHALL NOT EXCEED 50% OF THEIR TOTAL BUDGET
17 FOR FISCAL YEAR 2003-2004, ADJUSTED FOR INFLATION IN
18 SUBSEQUENT YEARS BY AN AMOUNT NOT TO EXCEED AN ANNUAL
19 COST-OF-LIVING ADJUSTMENT CALCULATED BY APPLYING THE
20 PERCENTAGE CHANGE IN THE CONSUMER PRICE INDEX FOR ALL
21 URBAN CONSUMERS FOR THE PENNSYLVANIA, NEW JERSEY,
22 DELAWARE AND MARYLAND AREA, FOR THE MOST RECENT 12-MONTH
23 PERIOD FOR WHICH FIGURES HAVE BEEN OFFICIALLY REPORTED BY
24 THE UNITED STATES DEPARTMENT OF LABOR, BUREAU OF LABOR
25 STATISTICS, IMMEDIATELY PRIOR TO THE DATE THE ADJUSTMENT
26 IS DUE TO TAKE EFFECT. ANY REMAINING MONEY SHALL BE
27 DISTRIBUTED IN ACCORDANCE WITH PARAGRAPH (2) BASED UPON
28 THE COUNTY WHERE THE LICENSED FACILITY OR FACILITIES IS
29 LOCATED. IN THE EVENT THAT THE REVENUES GENERATED BY THE
30 2% DO NOT MEET THE $10,000,000 MINIMUM SPECIFIED IN THIS
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1 SUBPARAGRAPH, THE LICENSED GAMING ENTITY OPERATING THE
2 LICENSED FACILITY OR FACILITIES IN THE TOWNSHIP SHALL
3 REMIT THE DIFFERENCE TO THE MUNICIPALITY.
4 (VI) TO A BOROUGH HOSTING A LICENSED FACILITY OR
5 FACILITIES, OTHER THAN A CATEGORY 3 LICENSED FACILITY, 2%
6 OF THE GROSS TERMINAL REVENUE OR $10,000,000 ANNUALLY,
7 WHICHEVER IS GREATER, OF ALL LICENSED FACILITIES LOCATED
8 IN THAT BOROUGH SUBJECT, HOWEVER, TO THE BUDGETARY
9 LIMITATION IN THIS SUBPARAGRAPH. THE AMOUNT ALLOCATED TO
10 THE DESIGNATED MUNICIPALITIES SHALL NOT EXCEED 50% OF
11 THEIR TOTAL BUDGET FOR FISCAL YEAR 2003-2004, ADJUSTED
12 FOR INFLATION IN SUBSEQUENT YEARS BY AN AMOUNT NOT TO
13 EXCEED AN ANNUAL COST-OF-LIVING ADJUSTMENT CALCULATED BY
14 APPLYING THE PERCENTAGE CHANGE IN THE CONSUMER PRICE
15 INDEX FOR ALL URBAN CONSUMERS FOR THE PENNSYLVANIA, NEW
16 JERSEY, DELAWARE AND MARYLAND AREA, FOR THE MOST RECENT
17 12-MONTH PERIOD FOR WHICH FIGURES HAVE BEEN OFFICIALLY
18 REPORTED BY THE UNITED STATES DEPARTMENT OF LABOR, BUREAU
19 OF LABOR STATISTICS, IMMEDIATELY PRIOR TO THE DATE THE
20 ADJUSTMENT IS DUE TO TAKE EFFECT. ANY REMAINING MONEY
21 SHALL BE DISTRIBUTED IN ACCORDANCE WITH PARAGRAPH (2)
22 BASED UPON THE COUNTY WHERE THE LICENSED FACILITY OR
23 FACILITIES IS LOCATED. IN THE EVENT THAT THE REVENUES
24 GENERATED BY THE 2% DO NOT MEET THE $10,000,000 MINIMUM
25 SPECIFIED IN THIS SUBPARAGRAPH, THE LICENSED GAMING
26 ENTITY OPERATING THE LICENSED FACILITY OR FACILITIES IN
27 THE BOROUGH SHALL REMIT THE DIFFERENCE TO THE
28 MUNICIPALITY.
29 (VII) TO AN INCORPORATED TOWN HOSTING A LICENSED
30 FACILITY OR FACILITIES, OTHER THAN A CATEGORY 3 LICENSED
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1 FACILITY, 2% OF THE GROSS TERMINAL REVENUE OR $10,000,000
2 ANNUALLY, WHICHEVER IS GREATER, OF ALL LICENSED
3 FACILITIES LOCATED IN THE TOWN SUBJECT, HOWEVER, TO THE
4 BUDGETARY LIMITATION IN THIS SUBPARAGRAPH. THE AMOUNT
5 ALLOCATED TO THE DESIGNATED MUNICIPALITIES SHALL NOT
6 EXCEED 50% OF THEIR TOTAL BUDGET FOR FISCAL YEAR 2003-
7 2004, ADJUSTED FOR INFLATION IN SUBSEQUENT YEARS BY AN
8 AMOUNT NOT TO EXCEED AN ANNUAL COST-OF-LIVING ADJUSTMENT
9 CALCULATED BY APPLYING THE PERCENTAGE CHANGE IN THE
10 CONSUMER PRICE INDEX FOR ALL URBAN CONSUMERS FOR THE
11 PENNSYLVANIA, NEW JERSEY, DELAWARE AND MARYLAND AREA, FOR
12 THE MOST RECENT 12-MONTH PERIOD FOR WHICH FIGURES HAVE
13 BEEN OFFICIALLY REPORTED BY THE UNITED STATES DEPARTMENT
14 OF LABOR, BUREAU OF LABOR STATISTICS, IMMEDIATELY PRIOR
15 TO THE DATE THE ADJUSTMENT IS DUE TO TAKE EFFECT. ANY
16 REMAINING MONEY SHALL BE DISTRIBUTED IN ACCORDANCE WITH
17 PARAGRAPH (2) BASED UPON THE COUNTY WHERE THE LICENSED
18 FACILITY OR FACILITIES IS LOCATED. IN THE EVENT THAT THE
19 REVENUES GENERATED BY THE 2% DO NOT MEET THE $10,000,000
20 MINIMUM SPECIFIED IN THIS SUBPARAGRAPH, THE LICENSED
21 GAMING ENTITY OPERATING THE LICENSED FACILITY OR
22 FACILITIES IN THE TOWN SHALL REMIT THE DIFFERENCE TO THE
23 MUNICIPALITY.
24 (VIII) TO A MUNICIPALITY OF ANY CLASS HOSTING A
25 CATEGORY 3 FACILITY, 2% OF THE GROSS TERMINAL REVENUE
26 FROM THE CATEGORY 3 LICENSED FACILITY LOCATED IN THE
27 MUNICIPALITY SUBJECT, HOWEVER, TO THE BUDGETARY
28 LIMITATION IN THIS SUBPARAGRAPH. THE AMOUNT ALLOCATED TO
29 THE DESIGNATED MUNICIPALITIES SHALL NOT EXCEED 50% OF
30 THEIR TOTAL BUDGET FOR FISCAL YEAR 2003-2004, ADJUSTED
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1 FOR INFLATION IN SUBSEQUENT YEARS BY AN AMOUNT NOT TO
2 EXCEED AN ANNUAL COST-OF-LIVING ADJUSTMENT CALCULATED BY
3 APPLYING THE PERCENTAGE CHANGE IN THE CONSUMER PRICE
4 INDEX FOR ALL URBAN CONSUMERS FOR THE PENNSYLVANIA, NEW
5 JERSEY, DELAWARE AND MARYLAND AREA, FOR THE MOST RECENT
6 12-MONTH PERIOD FOR WHICH FIGURES HAVE BEEN OFFICIALLY
7 REPORTED BY THE UNITED STATES DEPARTMENT OF LABOR, BUREAU
8 OF LABOR STATISTICS, IMMEDIATELY PRIOR TO THE DATE THE
9 ADJUSTMENT IS DUE TO TAKE EFFECT. ANY REMAINING MONEY
10 SHALL BE DISTRIBUTED IN ACCORDANCE WITH PARAGRAPH (2)
11 BASED UPON THE COUNTY WHERE THE LICENSED FACILITY OR
12 FACILITIES IS LOCATED.
13 (IX) ANY MUNICIPALITY NOT SPECIFICALLY ENUMERATED
14 IN SUBPARAGRAPHS (I) THROUGH (VIII), 2% OF THE GROSS
15 TERMINAL REVENUE TO THE MUNICIPALITY HOSTING THE LICENSED
16 FACILITY FROM EACH SUCH LICENSED FACILITY.
17 (X) IF THE LICENSED FACILITY IS LOCATED IN MORE THAN
18 ONE MUNICIPALITY, THE AMOUNT AVAILABLE SHALL BE
19 DISTRIBUTED ON A PRO RATA BASIS DETERMINED BY THE
20 PERCENTAGE OF ACREAGE LOCATED IN EACH MUNICIPALITY TO THE
21 TOTAL ACREAGE OF ALL MUNICIPALITIES OCCUPIED BY THE
22 LICENSED FACILITY.
23 (XI) IF THE LICENSED FACILITY IS LOCATED AT A RESORT
24 WHICH IS ALSO AN INCORPORATED MUNICIPALITY, SUCH
25 MUNICIPALITY SHALL NOT BE ELIGIBLE TO RECEIVE ANY
26 DISTRIBUTION UNDER THIS PARAGRAPH. THE DISTRIBUTION IT
27 WOULD HAVE OTHERWISE BEEN ENTITLED TO UNDER THIS
28 PARAGRAPH SHALL INSTEAD BE DISTRIBUTED IN ACCORDANCE WITH
29 PARAGRAPH (2) BASED UPON THE COUNTY WHERE THE LICENSED
30 FACILITY IS LOCATED.
20040H2330B4272 - 102 -

1 (XII) THE DISTRIBUTIONS PROVIDED IN THIS PARAGRAPH
2 SHALL BE BASED UPON MUNICIPAL CLASSIFICATIONS IN EFFECT
3 ON THE EFFECTIVE DATE OF THIS SECTION. FOR THE PURPOSES
4 OF THIS PARAGRAPH, ANY RECLASSIFICATION OF MUNICIPALITIES
5 AS A RESULT OF A FEDERAL DECENNIAL CENSUS OR OF A STATE
6 STATUTE SHALL NOT APPLY TO THIS PARAGRAPH.
7 (XIII) IF ANY PROVISION OF THIS PARAGRAPH IS FOUND
8 TO BE UNENFORCEABLE FOR ANY REASON, THE DISTRIBUTION
9 PROVIDED FOR IN SUCH UNENFORCEABLE PROVISION SHALL BE
10 MADE TO THE MUNICIPALITY IN WHICH THE LICENSED FACILITY
11 IS LOCATED.
12 (XIV) NOTHING IN THIS PARAGRAPH SHALL PREVENT ANY OF
13 THE ABOVE MUNICIPALITIES FROM ENTERING INTO
14 INTERGOVERNMENTAL COOPERATIVE AGREEMENTS WITH OTHER
15 JURISDICTIONS FOR SHARING THIS MONEY.
16 (XV) NOTWITHSTANDING ANY OTHER LAW, AGREEMENT OR
17 PROVISION IN THIS PART TO THE CONTRARY, ALL REVENUES
18 PROVIDED, DIRECTED OR EARMARKED UNDER THIS SECTION TO OR
19 FOR THE BENEFIT OF A CITY OF THE SECOND CLASS IN WHICH AN
20 INTERGOVERNMENTAL COOPERATION AUTHORITY HAS BEEN
21 ESTABLISHED AND IS IN EXISTENCE PURSUANT TO THE ACT OF
22 FEBRUARY 12, 2004 (P.L.73, NO.11), KNOWN AS THE
23 INTERGOVERNMENTAL COOPERATION AUTHORITY ACT FOR CITIES OF
24 THE SECOND CLASS, SHALL BE DIRECTED TO AND UNDER THE
25 EXCLUSIVE CONTROL OF SUCH INTERGOVERNMENTAL COOPERATION
26 AUTHORITY TO BE USED:
27 (A) TO REDUCE THE DEBT OF THE SECOND CLASS CITY;
28 (B) TO INCREASE THE LEVEL OF FUNDING OF THE
29 MUNICIPAL PENSION FUNDS OF THE SECOND CLASS CITY; OR
30 (C) FOR ANY OTHER PURPOSES AS DETERMINED TO BE
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1 IN THE BEST INTEREST OF THE SECOND CLASS CITY BY SUCH
2 INTERGOVERNMENTAL COOPERATION AUTHORITY. SUCH
3 REVENUES SHALL NOT BE DIRECTED TO OR UNDER THE
4 CONTROL OF SUCH CITY OF THE SECOND CLASS OR ANY
5 COORDINATOR APPOINTED PURSUANT TO THE ACT OF JULY 10,
6 1987 (P.L.246, NO.47), KNOWN AS THE MUNICIPALITIES
7 FINANCIAL RECOVERY ACT, FOR SUCH CITY OF THE SECOND
8 CLASS.
9 § 1404. DISTRIBUTIONS FROM LICENSEE'S REVENUE RECEIPTS.
10 FOR HOLDERS OF CATEGORY 1 LICENSES, AN AMOUNT NOT LESS THAN
11 $5,000,000 OVER THE INITIAL FIVE-YEAR PERIOD FOLLOWING THE
12 INITIAL ISSUANCE OF A CATEGORY 1 SLOT MACHINE LICENSE AND AN
13 AMOUNT NOT LESS THAN $250,000 NOR MORE THAN $1,000,000 PER YEAR
14 FOR FIVE YEARS THEREAFTER SHALL BE DEPOSITED BY EACH LICENSEE
15 INTO A SEGREGATED ACCOUNT AND USED FOR IMPROVEMENT AND
16 MAINTENANCE OF THE BACKSIDE AREA AND RELATED BUILDINGS AND
17 STRUCTURES AT THE RACETRACK AT WHICH THE LICENSEE OPERATES. THE
18 LICENSED RACING ENTITY DESIGNEE AND THE DESIGNEE OF THE
19 RECOGNIZED HORSEMEN'S ORGANIZATION AT EACH RACETRACK SHALL
20 JOINTLY CONSIDER THE APPROPRIATE AMOUNT OF THE FUNDS AND HOW THE
21 MONEY SHALL BE SPENT AT THE RACETRACK. DISPUTES INVOLVING THE
22 AMOUNT AND EXPENDITURE OF FUNDS UNDER THIS SECTION SHALL BE
23 RESOLVED BY THE STATE HORSE RACING COMMISSION OR THE STATE
24 HARNESS RACING COMMISSION, WHICHEVER IS APPROPRIATE, WHICH SHALL
25 OVERSEE THE USE OF THESE FUNDS. NOTWITHSTANDING OTHER PROVISIONS
26 OF THIS SECTION, A LICENSED RACING ENTITY THAT HAS NOT
27 PREVIOUSLY CONDUCTED LIVE RACING AND IS CONSTRUCTING A NEW
28 RACETRACK, BACKSIDE AREA AND RELATED BUILDINGS AND STRUCTURES
29 THAT CAN ESTABLISH TO THE SATISFACTION OF THE BOARD THAT THE
30 LICENSED RACING ENTITY HAS SPENT NO LESS THAN $5,000,000 IN THE
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1 CONSTRUCTION OF THE NEW RACETRACK'S BACKSIDE AREA, RELATED
2 BUILDINGS AND STRUCTURES SHALL NOT BE SUBJECT TO THE
3 EXPENDITURES REQUIRED BY THIS SECTION UNTIL THE TENTH YEAR AFTER
4 THE COMPLETION OF SUCH CONSTRUCTION AT THE NEW RACETRACK. THE
5 BOARD MAY EXTEND THE TIME FRAME FOR DISTRIBUTIONS UNDER THIS
6 SECTION FOR A NEWLY CONSTRUCTED RACETRACK FOR UP TO AN
7 ADDITIONAL TWO YEARS IF, UPON INSPECTION, EITHER THE STATE HORSE
8 RACING COMMISSION OR THE STATE HARNESS RACING COMMISSION,
9 WHICHEVER IS APPLICABLE, DETERMINES THAT THE PHYSICAL CONDITION
10 OF THE BACKSIDE AREA AND RELATED BUILDINGS AND STRUCTURES OF THE
11 RACETRACK IS SUFFICIENT TO PROTECT THE HEALTH AND SAFETY OF
12 BACKSIDE EMPLOYEES.
13 § 1405. PENNSYLVANIA RACE HORSE DEVELOPMENT FUND.
14 (A) FUND ESTABLISHED.--THERE IS HEREBY ESTABLISHED A
15 PENNSYLVANIA RACE HORSE DEVELOPMENT FUND WITHIN THE STATE
16 TREASURY.
17 (B) PENNSYLVANIA RACE HORSE IMPROVEMENT ASSESSMENT.--EACH
18 ACTIVE AND OPERATING LICENSED GAMING ENTITY SHALL PAY A DAILY
19 ASSESSMENT TO THE PENNSYLVANIA RACE HORSE DEVELOPMENT FUND AS
20 DETERMINED BY THE DEPARTMENT. SUBJECT TO THE DAILY ASSESSMENT
21 CAP ESTABLISHED UNDER SUBSECTION (C), THE LICENSED GAMING
22 ENTITY'S ASSESSMENT SHALL BE A PERCENTAGE OF EACH LICENSED
23 GAMING ENTITY'S GROSS TERMINAL REVENUE, EQUAL TO AN AMOUNT
24 CALCULATED AS "A" MULTIPLIED BY "B"; WITH "A" BEING EQUAL TO
25 EACH LICENSED GAMING ENTITY'S GROSS TERMINAL REVENUE FOR THAT
26 DAY DIVIDED BY THE TOTAL GROSS TERMINAL REVENUE FOR THAT DAY
27 FROM ALL LICENSED GAMING ENTITIES; AND, "B" BEING EQUAL TO 18%
28 OF THAT DAY'S GROSS TERMINAL REVENUE FOR ALL ACTIVE AND
29 OPERATING CATEGORY 1 LICENSEES CONDUCTING LIVE RACING.
30 (C) DAILY ASSESSMENT CAP.--IF THE RESULTING DAILY ASSESSMENT
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1 FOR A LICENSED GAMING ENTITY EXCEEDS 12% OF THAT LICENSED GAMING
2 ENTITY'S GROSS TERMINAL REVENUE FOR THE DAY, THE LICENSED GAMING
3 ENTITY SHALL PAY A DAILY ASSESSMENT OF 12% OF ITS GROSS TERMINAL
4 REVENUE FOR THAT DAY.
5 (D) DISTRIBUTIONS.--IN ACCORDANCE WITH SECTION 1406
6 (RELATING TO DISTRIBUTIONS FROM PENNSYLVANIA RACE HORSE
7 DEVELOPMENT FUND), THE DEPARTMENT SHALL MAKE DISTRIBUTIONS FROM
8 THE PENNSYLVANIA RACE HORSE DEVELOPMENT FUND TO EACH OF THE
9 ACTIVE AND OPERATING CATEGORY 1 LICENSEES CONDUCTING LIVE
10 RACING.
11 § 1406. DISTRIBUTIONS FROM PENNSYLVANIA RACE HORSE DEVELOPMENT
12 FUND.
13 (A) DISTRIBUTIONS.--FUNDS FROM THE PENNSYLVANIA RACE HORSE
14 DEVELOPMENT FUND SHALL BE DISTRIBUTED TO EACH ACTIVE AND
15 OPERATING CATEGORY 1 LICENSEE CONDUCTING LIVE RACING IN THE
16 FOLLOWING MANNER:
17 (1) AN AMOUNT EQUAL TO 18% OF THE DAILY GROSS TERMINAL
18 REVENUE OF EACH CATEGORY 1 LICENSEE SHALL BE DISTRIBUTED TO
19 EACH ACTIVE AND OPERATING CATEGORY 1 LICENSEE CONDUCTING LIVE
20 RACING UNLESS THE DAILY ASSESSMENTS ARE AFFECTED BY THE DAILY
21 ASSESSMENT CAP PROVIDED FOR IN SECTION 1405(C). IN CASES IN
22 WHICH THE DAILY ASSESSMENT CAP AFFECTS DAILY ASSESSMENTS, THE
23 DISTRIBUTION TO EACH ACTIVE AND OPERATING CATEGORY 1 LICENSEE
24 CONDUCTING LIVE RACING FOR THAT DAY SHALL BE A PERCENTAGE OF
25 THE TOTAL DAILY ASSESSMENTS PAID INTO THE PENNSYLVANIA RACE
26 HORSE DEVELOPMENT FUND FOR THAT DAY EQUAL TO THE GROSS
27 TERMINAL REVENUE OF EACH ACTIVE AND OPERATING CATEGORY 1
28 LICENSEE CONDUCTING LIVE RACING FOR THAT DAY DIVIDED BY THE
29 TOTAL GROSS TERMINAL REVENUE OF ALL ACTIVE AND OPERATING
30 CATEGORY 1 LICENSEES CONDUCTING LIVE RACING FOR THAT DAY. THE
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1 DISTRIBUTIONS TO LICENSED RACING ENTITIES FROM THE
2 PENNSYLVANIA RACE HORSE DEVELOPMENT FUND SHALL BE ALLOCATED
3 AS FOLLOWS:
4 (I) EIGHTY PERCENT TO BE DEPOSITED WEEKLY INTO A
5 SEPARATE, INTEREST-BEARING PURSE ACCOUNT TO BE
6 ESTABLISHED BY AND FOR THE BENEFIT OF THE HORSEMEN. THE
7 EARNED INTEREST ON THE ACCOUNT SHALL BE CREDITED TO THE
8 PURSE ACCOUNT. LICENSEES SHALL COMBINE THESE FUNDS WITH
9 REVENUES FROM EXISTING PURSE AGREEMENTS TO FUND PURSES
10 FOR LIVE RACES CONSISTENT WITH THOSE AGREEMENTS WITH THE
11 ADVICE AND CONSENT OF THE HORSEMEN.
12 (II) FROM LICENSEES THAT OPERATE AT THOROUGHBRED
13 TRACKS, 16% TO BE DEPOSITED ON A MONTHLY BASIS INTO THE
14 PENNSYLVANIA BREEDING FUND AS DEFINED IN SECTION 223 OF
15 THE RACE HORSE INDUSTRY REFORM ACT. FROM LICENSEES THAT
16 OPERATE AT STANDARDBRED TRACKS, 8% TO BE DEPOSITED ON A
17 MONTHLY BASIS IN THE PENNSYLVANIA SIRE STAKES FUND AS
18 DEFINED IN SECTION 224 OF THE RACE HORSE INDUSTRY REFORM
19 ACT AND 8% TO BE DEPOSITED ON A MONTHLY BASIS INTO A
20 RESTRICTED ACCOUNT IN THE STATE RACING FUND TO BE KNOWN
21 AS THE PENNSYLVANIA STANDARDBRED BREEDERS DEVELOPMENT
22 FUND. THE STATE HARNESS RACING COMMISSION SHALL, IN
23 CONSULTATION WITH THE SECRETARY OF AGRICULTURE BY RULE OR
24 BY REGULATION, ADOPT A STANDARDBRED BREEDERS PROGRAM THAT
25 WILL INCLUDE THE ADMINISTRATION OF PENNSYLVANIA STALLION
26 AWARD, PENNSYLVANIA BRED AWARD AND A PENNSYLVANIA SIRED
27 AND BRED AWARD.
28 (III) FOUR PERCENT TO BE USED TO FUND HEALTH AND
29 PENSION BENEFITS FOR THE MEMBERS OF THE HORSEMEN'S
30 ORGANIZATIONS REPRESENTING THE OWNERS AND TRAINERS AT THE
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