Expanding Gaming; Creating Property Tax Relief Fund

Governor Will Amend Code of Conduct to Include Anti-corruption Measures

HARRISBURG, Pa. -- Governor Edward G. Rendell signed legislation implementing expanded gaming and delivering on a decades old promise to deliver property tax relief at Philadelphia Park in Bensalem. Standing in the winner's circle at Philadelphia Park, Governor Rendell, who was joined by members of the legislative, praised the bipartisan work to craft these historic pieces of legislation, House Bill 2330 and SB 100.


"Today, the people of Pennsylvania are true winners. Starting now, we begin the long overdue process of recapturing billions of dollars in lost revenue, creating thousands of jobs, dramatically contributing to the future of the horseracing industry and finally returning millions of dollars in the form of lower property and wage taxes for the citizens of Pennsylvania," said Governor Rendell. "Urban slots venues will also generate significant resources for the Commonwealth to invest in economic development projects to improve our communities in every county."


Senate Bill 100 will enable $1 billion in property and wage tax relief for citizens across the state. The average reduction of $333 per homeowner will be funded by revenue from slot machines legalized in House Bill 2330.


The property tax package in Senate Bill 100 represents a historic compromise that combines the principles that the Governor championed during his Gubernatorial campaign and outlined in his Plan for a New Pennsylvania, and the strongest attributes of an alternative Senate plan. When at least $750 million in gaming revenues are available for property tax relief, every school district will be able to reduce its reliance on property taxes by a minimum of 10%. On average, districts will be able to decrease property taxes by 23%. In Philadelphia, the wage tax will be substantially reduced to a historic low for residential and non-resident wage taxpayers who work in Philadelphia.


"For decades sky rocketing property taxes have forced seniors from their homes and discouraged new homeownership -- negatively impacting our communities," said Governor Rendell. "By signing this historic bill today, combined with the budget increases in funding for our schools, the state's share of funding for public education will increase by more than one billion dollars. We are beginning to reverse the tide of unfairly burdening Pennsylvania homeowners and provide them with much needed tax relief." The provisions requiring voter approval for any school property tax increase over the rate of inflation was hailed by the Governor as "finally giving Pennsylvania taxpayers protection against ever-escalating property tax increases."


House Bill 2330 expands gaming in Pennsylvania to include, fourteen slot venues -- seven at racetracks, five non-track parlors and two at resort-based locations. These licenses will reap $610 million in license fees while revenues from slot machines will eventually fund a $1 billion property tax relief fund. The statute includes aggressive anti-crime and anti-corruption measures making Pennsylvania a leader among states with major gambling operations.


"This bill includes far-reaching anti-corruption provisions -- making it one of the most responsible gaming laws in America that I will be proud to sign," said Governor Rendell. "Today, I amend the Governor's Code of Conduct further protecting against opportunities for political influence in this burgeoning industry by prohibiting people in my administration from holding any financial interest in gaming companies."


Also prohibited from holding any financial interest in the gaming industry are the following: employees of the Pennsylvania State Police and Department of Revenue, members of the Pennsylvania State Horse Racing and Harness Racing Commissions and their respective staff, members of the board of PSERS and SERS and their respective staff and members of the board of the Independent Regulatory Review Commission and its employees.


The bill also establishes the seven-member Pennsylvania Gaming Board that will oversee all licensing and operations of the slots venues. The Governor will appoint three members, and four members appointed by each legislative caucus.


Below is the text of the Executive Order

Executive Order 1980-18, Part I, section 1, is revised to add:

c. Hold any pecuniary interest in, or own shares or securities issued by,
an entity regulated by the act of July 5, 2004 (P.L. ______,
No.______) known as the Pennsylvania Racehorse Development and Gaming
Act (herein, a "regulated gaming entity").

This provision shall not apply to

1. interests held in mutual funds where the value of the interest
owned does not exceed one percent (1%) of the total fair market
value of the regulated gaming entity;

2. interests held through defined benefit pension plans;

3. interests held in blind trusts over which the holder may not
exercise any managerial control or receive income during the time
period the holder is subject to these provisions; or

4. interests held in a regulated gaming entity prior to July 6, 2004
by individuals other than the following:

(a) employees of the Pennsylvania State Police or the Pennsylvania
Department of Revenue whose duties include any aspect of the
gaming industry;

(b) members of the Pennsylvania State Horse Racing Commission or
the Pennsylvania State Harness Racing Commission and their
respective staff;

(c) public officials appointed by the Governor and Commonwealth
employees under the Governor's jurisdiction;

(d) members of the board of the Public School Employees Retirement
System and its employees;

(e) members of the board of the State Employees Retirement System
and its employees; and

(f) members of the board of the Independent Regulatory Review
Commission and its employees.

CONTACT:
Kate Philips
717-783-1116

Source: Pennsylvania Office of the Governor

CONTACT: Kate Philips of Pennsylvania Office of the Governor,
+1-717-783-1116


Web site: http://www.state.pa.us/

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