2023 Pennsylvania Consolidated & Unconsolidated Statutes › Title 4 - AMUSEMENTS › Chapter 14 - Revenues › Section 1407 - Pennsylvania Gaming Economic Development and Tourism Fund

§ 1407. Pennsylvania Gaming Economic Development and Tourism Fund.
(a) Fund established.--
There is hereby established a Pennsylvania Gaming Economic Development and Tourism Fund within the State Treasury.
(b) Fund administration and distribution.--
The Pennsylvania Gaming Economic Development and Tourism Fund shall be administered by the Department of Community and Economic Development. Except as provided under subsection (c.1), all moneys in the Pennsylvania Gaming Economic Development and Tourism Fund shall be distributed pursuant to a subsequently enacted Economic Development Capital Budget that appropriates money from the fund pursuant to this section. The procedures for enactment, authorization and release of economic development and tourism funds authorized under this section for both capital projects and operational expenditures shall be the same as those provided for in sections 303(a), (b) and (c) and 318(a) of the act of February 9, 1999 (P.L.1, No.1), known as the Capital Facilities Debt Enabling Act, without reference to the nature or purpose of the project, and any other statutory provision, if any, necessary to effectuate the release of funds appropriated in such economic development capital budget.
(c) Pennsylvania Gaming Economic Development and Tourism Fund Assessment.--
Each licensed gaming entity, other than a Category 4 slot machine licensee, shall pay a daily assessment of 5.5% of its gross terminal revenue to the Pennsylvania Gaming Economic Development and Tourism Fund.
(c.1) Supplemental Pennsylvania Gaming Economic Development and Tourism Fund Assessment.--
In addition to subsection (c), beginning January 1, 2018, each licensed gaming entity, other than a Category 4 slot machine licensee, shall pay a supplemental daily assessment of 0.5% of its gross terminal revenue to the Casino Marketing and Capital Development Account. The following shall apply:
(1) The board shall submit notice to the Legislative Reference Bureau for publication in the Pennsylvania Bulletin when the gross terminal revenue for each Category 1 and Category 2 slot machine licensee for the previous fiscal year exceeds $200,000,000 and the gross terminal revenue for each Category 3 slot machine licensee for the previous fiscal year exceeds $50,000,000.
(2) This subsection shall expire on the earlier of:
(i) ten years after the effective date of this subsection; or
(ii) the date of publication of the notice under paragraph (1).
(d) Restrictions on projects for certain counties and cities.--
Except as set forth in subsections (d.1), (d.2), (d.3) and (d.4), for a ten-year period beginning with the first fiscal year during which deposits are made into this fund, no moneys from the Pennsylvania Gaming Economic Development and Tourism Fund shall be distributed for any project located in a city or county of the first or second class except as authorized by this subsection. Moneys not used for the authorized projects in cities and counties of the first and second classes may be used throughout this Commonwealth. Moneys from the fund for projects within cities and counties of the first and second classes may only be used for the following projects during this ten-year period:
(1) for reimbursement to a city of the first class for debt service made by such city to the extent that such payments have been made for the expansion of the Pennsylvania Convention Center;
(2) for distribution to the General Fund to the extent that the Commonwealth has made debt service payments for the expansion of the Pennsylvania Convention Center;
(3) for reimbursement to a city of the first class for payments made by such city for the operation expenses of the Pennsylvania Convention Center during the prior calendar year;
(4) for debt service and for development and economic development projects for an international airport located in a county of the second class;
(5) for distribution to a community infrastructure development fund of a county of the second class to fund construction, development, improvement and maintenance of infrastructure projects;
(6) for the retirement of the indebtedness of an urban redevelopment authority created pursuant to the act of May 24, 1945 (P.L.991, No.385), known as the Urban Redevelopment Law, in a city of the second class which is financed in part with the utilization of funds transferred to the regional asset district pursuant to Article XXXI-B of the act of July 28, 1953 (P.L.723, No.230), known as the Second Class County Code;
(7) (Deleted by amendment).
(8) for retirement of indebtedness of a county of the second class development fund created pursuant to the authority of Article XXXI-B of the Second Class County Code and the Urban Redevelopment Law;
(9) for retirement of indebtedness of a convention center in a city of the second class established pursuant to the authority of the Public Auditorium Authorities Law;
(10) for payment of the operating deficit for the operation of a convention center in a city of the second class established pursuant to the Public Auditorium Authorities Law.
(d.1) Community and economic development.--
(1) Notwithstanding subsection (b) or any other provision of law to the contrary, the money authorized but not expended under former subsection (d)(7) as of the effective date of this subsection shall be deposited into a restricted receipts account to be established in the Commonwealth Financing Authority exclusively for eligible applications submitted by the redevelopment authority of a county of the second class created pursuant to the act of May 24, 1945 (P.L.991, No.385), known as the Urban Redevelopment Law, for economic development, infrastructure development, job training, community improvement, public safety or other projects in the public interest located in a county of the second class. Community development corporations, political subdivisions, urban redevelopment authorities, municipal authorities, for-profit entities and nonprofit entities located in a county of the second class shall be eligible to receive funds made available under this paragraph.
(2) Notwithstanding the Capital Facilities Debt Enabling Act, funding under the paragraph (1) may be utilized as local matching funds for grants or loans from the Commonwealth.
(d.2) Project extension.--
Notwithstanding any provision of this title or the act of July 25, 2007 (P.L.342, No.53), known as the Pennsylvania Gaming Economic Development and Tourism Fund Capital Budget Itemization Act of 2007, the projects under subsections (d)(4) and (5) and (d.1) shall be authorized beyond the expiration date of each of the projects set forth in the Pennsylvania Gaming Economic Development and Tourism Fund Capital Budget Itemization Act of 2007. The following shall apply:
(1) Annual allocations for projects under subsection (d)(4) and (5), and under the former subsection (d)(7) as of the effective date of subsection (d.1), shall continue in accordance with the amounts set forth in section 4 of the Pennsylvania Gaming Economic Development and Tourism Fund Capital Budget Itemization Act of 2007.
(2) Annual allocations under subsection (d)(5) shall be deposited into the restricted receipts account established under subsection (d.1) and used for projects as set forth in subsection (d.1)(1).
(d.3) Regional economic development corporation.--
For a ten-year period beginning with fiscal year 2019-2020, the amount of $2,000,000 annually shall be allocated from the Pennsylvania Gaming Economic Development and Tourism Fund for distribution to a regional economic development corporation in two contiguous counties of the third class where a city of the third class is located in more than one county of the third class for debt service on the construction of a science and education center in a city of the third class that is also the county seat located in a county of the third class in which a Category 2 licensed facility is located in a city of the third class which is located in more than one county of the third class. Unused funds from this allocation shall be distributed by the same regional economic development corporation located in two contiguous counties of the third class where a city of the third class is located in more than one county of the third class for debt service on the construction of one or more facilities that provide a science, education, arts, technology or recreational use in one or both contiguous counties of the third class where a city of the third class is located in more than one county of the third class. The funds allocated under this subsection shall be distributed in accordance with subsection (b).
(d.4) Regional Sports Commission.--
Notwithstanding any provision of this title or the Pennsylvania Gaming Economic Development and Tourism Fund Capital Budget Itemization Act of 2007, the annual allocation authorized under subsection (d)(10) on and after the effective date of this subsection shall continue in accordance with the amounts under section 4 of the Pennsylvania Gaming Economic Development and Tourism Fund Capital Budget Itemization Act of 2007 and shall be deposited into a restricted receipts account to be used exclusively by an authority created under Article XXV-A of the act of July 28, 1953 (P.L.723, No.230), known as the Second Class County Code, in a county of the second class for the establishment, administration and maintenance of a Regional Sports Commission.
(e) Annual report.--
The Office of the Budget, in cooperation with the Department of Community and Economic Development and the Commonwealth Financing Authority, shall submit an annual report of all distribution of funds under this section to the chairman and minority chairman of the Appropriations Committee of the Senate, the chairman and minority chairman of the Community, Economic and Recreational Development Committee of the Senate, the chairman and minority chairman of the Appropriations Committee of the House of Representatives and the chairman and minority chairman of the Gaming Oversight Committee of the House of Representatives. The report shall include detailed information relating to transfers made from the Pennsylvania Gaming Economic Development and Tourism Fund and all reimbursements, distributions and payments made under subsection (b) or the act of July 25, 2007 (P.L.342, No.53), known as Pennsylvania Gaming Economic Development and Tourism Fund Capital Budget Itemization Act of 2007. The report shall be submitted by August 31, 2010, and by August 31 of each year thereafter.
(f) Local report.--
A city of the first class, city of the second class, county of the second class, convention center or convention center authority, sports and exhibition authority of a county of the second class, urban redevelopment authority, airport authority or other entity that receives money from the fund pursuant to an Economic Development Capital Budget under subsection (b) or the Pennsylvania Gaming Economic Development and Tourism Fund Capital Budget Itemization Act of 2007 shall submit an annual report to the Office of the Budget. The report shall include detailed information, including records of expenditures, payments and other distributions made from funds received under subsection (b). The initial report shall include information on all funds received prior to August 31, 2010. The report shall be submitted by August 31, 2010, and by August 31 of each year thereafter until all funds under this section are distributed or received. An entity that receives funds for the first time after the effective date of this section shall submit its initial report by August 31 of the year following receipt of the funds.
(g) Distribution to international airport.--
Notwithstanding the provisions of section 7(d) of the Pennsylvania Gaming Economic Development and Tourism Fund Capital Budget Itemization Act of 2007, following the distribution of $42.5 million of funds allocated to a county of the second class for debt service and economic development projects for an international airport in the county under section 3(2)(i)(E) of the Pennsylvania Gaming Economic Development and Tourism Fund Capital Budget Itemization Act of 2007, all remaining funds shall be distributed directly to an authority that operates an international airport in the county.
(Jan. 7, 2010, P.L.1, No.1, eff. July 1, 2011; Oct. 30, 2017, P.L.419, No.42)
2017 Amendment.
Act 42 amended subsecs. (b), (c) and (d) intro. par. and added subsecs. (c.1), (d.2), (d.3) and (d.4), effective January 1, 2018, as to subsecs. (b), (c), (c.1), (d) intro. par., (d.2) and (d.3) and immediately as to subsec. (d.4).
2010 Amendment.
Act 1 amended subsec. (d) intro. par., added subsecs. (d.1), (e), (f) and (g) and deleted subsec. (d)(7).
2008 Partial Repeal.
Section 5104 of Act 63 of 2008, known as the H2O PA Act, provided that section 1407 is repealed insofar as it is inconsistent with Act 63.
Cross References.
Section 1407 is referred to in sections 1103, 1313, 1403 of this title.