The state Senate voted unanimously Wednesday in favor of the measure. It's sponsored by Senator Jake Corman, a Republican whose district includes State College.
Penn State agreed to the fine last summer as part of a deal that averted a potential shutdown of its football program by college sports' governing body. The university has already made the first of five $12 million payments.
In floor remarks, Corman said the money "could do an extraordinary amount of good right here in Pennsylvania.''
Governor Corbett has filed a federal anti-trust lawsuit against the NCAA over the sanctions.
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