PRINTER'S NO. 706
No. 640 Session of 1977
INTRODUCED BY FREIND, HOEFFEL, TRELLO, FISHER, HOPKINS AND BURD,
MARCH 16, 1977
REFERRED TO COMMITTEE ON FINANCE, MARCH 16, 1977
AN ACT
1 Authorizing the selling of chances and conducting of gambling
2 activities by charitable organizations, providing for
3 licensing by the Commission on Charitable Organizations,
4 authorizing the sale of chances by political organizations,
5 and providing penalties.
6 The General Assembly of the Commonwealth of Pennsylvania
7 hereby enacts as follows:
8 Section 1. Definitions.
9 The following words and phrases when used in this act shall
10 have, unless the context clearly indicates otherwise, the
11 meanings given to them in this section:
12 "Charitable organizations." Any nonprofit organization,
13 including but not limited to any volunteer fire, ambulance, or
14 rescue company, any nonprofit educational institution or
15 religious organization, any charity with benevolent or
16 philanthropic purposes, and any veterans' or civic organization.
17 "Gambling." Any drawing or other system, other than one
18 based on selling of chances, based on random selection of
19 winners, including bingo, or any contest of individual skill,
1 for awarding cash or other property. Not included in this
2 definition is any system for awarding cash or other property
3 based on the result of any political nomination, appointment, or
4 election; the taking of or failure to take any official action
5 by any governmental body; the result of any athletic contest or
6 game of skill involving one or more individuals where such cash
7 or other property is awarded to any individual not participating
8 in such contest or game of skill; or the result of any game or
9 contest involving one or more animals.
10 "Game." Any system for awarding cash or other property based
11 on the selling of chances or conducting of gambling activities.
12 "Selling of chances." The giving, for remuneration, of the
13 opportunity to participate in any game for awarding cash or
14 other property, based on random selection of winners, but not
15 including bingo or any system in which playing cards, dice, or
16 any mechanical devices are employed. Not included in this
17 definition is any system for awarding cash or other property
18 based on the result of any political nomination, appointment, or
19 election; the taking of or failure to take any official action
20 by any governmental body; the result of any athletic contest or
21 game of skill involving one or more individuals where such cash
22 or other property is awarded to any individual not participating
23 in such contest or game of skill; or the result of any game or
24 contest involving one or more animals.
25 Section 2. Local option.
26 (a) Authorization, counties and cities of the first class.--
27 (1) Any county, and any city of the first class, may, by
28 ordinance or resolution, authorize the selling of chances or
29 conducting of gambling activities within the county by
30 charitable organizations authorized to sell chances by this
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1 act. Such ordinance or resolution shall authorize the selling
2 of chances and conducting of gambling activities in any game
3 and by any charitable organization authorized by this act and
4 shall not authorize the selling of chances or the conducting
5 of gambling activities only in certain games or by certain
6 charitable organizations.
7 (2) Any county, and any city of the first class, may, by
8 ordinance or resolution passed at least 30 days prior to the
9 next primary or general election, direct that the following
10 question be placed on the ballot to be voted upon in the next
11 primary or general election by all qualified voters of the
12 county:
13 Shall charitable organizations be permitted
14 to conduct gambling activities within the county
15 (city) of ______________ for charitable purposes?
16 If more qualified voters of the county or city shall vote "Yes"
17 than shall vote "No," then the county or city shall within 30
18 days after the primary or general election, pass an ordinance or
19 resolution authorizing the selling of chances and conducting of
20 gambling activities by any charitable organization within that
21 county or city.
22 (3) The chief clerk of the county shall, within ten days
23 of the passage of such ordinance or resolution, transmit
24 certified copies thereof, by registered or certified mail,
25 return receipt requested, to the chairman of the Commission
26 on Charitable Organizations of the Department of State and
27 the president or chairman of any city or borough council or
28 township commission within the county.
29 (b) Authorization, cities, townships, or boroughs.--
30 (1) Any city, township, or borough, located within a
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1 county, may, at any time following receipt of a certified
2 copy of the county ordinance or resolution passed pursuant to
3 subsection (a), pass an ordinance or resolution permitting
4 the selling of chances and conducting of gambling activities
5 by charitable organizations within the city, township, or
6 borough. Such ordinance or resolution shall permit the
7 selling of chances and conducting of gambling activities in
8 any game and by all charitable organizations and shall not
9 authorize the selling of chances or conducting of gambling
10 activities only in certain games or by certain charitable
11 organizations.
12 (2) Such city, township, or borough may, by ordinance or
13 resolution passed at least 30 days prior to the next primary
14 or general election, direct that the following question be
15 placed on the ballot to be voted upon in the next primary or
16 general election by all qualified voters of the city,
17 township, or borough:
18 Shall charitable organizations be permitted
19 to conduct gambling activities within the city
20 (township) (borough) of _______________________
21 for charitable purposes?
22 If more qualified voters of the city, township, or borough shall
23 vote "Yes" than shall vote "No," then the city, township, or
24 borough shall, within 30 days after the primary or general
25 election, pass an ordinance or resolution authorizing the
26 selling of chances and conducting of gambling activities by any
27 charitable organization within that city, township or borough.
28 (3) The president or chairman of the city or borough
29 council or of the township commission shall, within ten days
30 of the passage of any ordinance or resolution pursuant to
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1 this subsection, transmit certified copies, by registered or
2 certified mail, return receipt requested, of such ordinance
3 or resolution to the chairman of the Commission on Charitable
4 Organizations and the chief clerk of the county in which such
5 city, borough, or township is located.
6 (c) Repeal of ordinance or resolution.--Any ordinance or
7 resolution passed pursuant to subsection (a) or (b) may be
8 repealed at any time. Certified copies of the ordinance or
9 resolution effecting such repeal shall be transmitted, within
10 ten days of passage, by registered or certified mail, return
11 receipt requested, to those officers entitled to receive copies
12 of the ordinance or resolution which was repealed, as enumerated
13 in subsections (a) and (b).
14 (d) Limitation.--No ordinance or resolution which would
15 operate to prohibit the selling of chances and conducting of
16 gambling activities by charitable organizations, once the same
17 has been authorized under subsections (a) and (b), shall take
18 effect until 18 months after its passage.
19 Section 3. Licensing of games.
20 (a) License and fee.--Not less than 60 and not more than 90
21 days after receipt of a certified copy of any ordinance passed
22 pursuant to section 2(a), the Commission on Charitable
23 Organizations shall issue licenses, good for one year, to any
24 charitable organization applying for one and paying a license
25 fee of $100. Such license shall authorize the charitable
26 organization to sell chances and conduct gambling activities in
27 the county specified therein, but not in any city, township, or
28 borough within such county from which the Commission on
29 Charitable Organizations has not received a copy of an ordinance
30 passed pursuant to section 2(b). All such cities, townships and
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1 boroughs within the county, from which the Commission on
2 Charitable Organizations has received a copy of an ordinance
3 passed pursuant to section 2(b), shall be specifically
4 enumerated in the license. Any charitable organization wishing
5 to sell chances and conduct gambling activities in more than one
6 county shall apply for a separate license and pay a separate
7 license fee for each county in which chances are to be sold or
8 gambling activities are to be conducted. Such license shall be
9 kept in the custody of the chief executive or financial officer
10 of the charitable organization and a copy thereof prominently
11 displayed at any gathering of 25 or more people where chances
12 are to be sold or gambling activities to be conducted.
13 (b) Supplemental license.--Whenever the commission shall
14 receive a resolution pursuant to section 2(b) and a charitable
15 organization has already received a license, pursuant to
16 subsection (a), on which the municipality is not included, the
17 commission shall, upon request of said charitable organization,
18 issue a supplemental license free of charge to expire on the
19 date on which the original license issued under subsection (a)
20 would have expired.
21 Section 4. Restrictions.
22 (a) Expenditures, reports and records.--
23 (1) No licensee shall expend, during any year, more than
24 20% of its gross receipts on sale of chances or the
25 conducting of gambling activities for administrative
26 expenses, exclusive of the cash or other property awarded in
27 the game. No compensation of any kind shall be paid to any
28 person, association, partnership, corporation, or other
29 organization for promoting or conducting the game, but
30 compensation may be paid on lease or purchase of any
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1 equipment used in the game, not exceeding the actual value of
2 such purchase or lease and not based on any percentage of
3 gross receipts or other revenue from the game.
4 (2) Each licensee shall, at the end of each year, report
5 to the Commission on Charitable Organizations its gross
6 receipts for the year and all amounts expended on
7 administrative expenses and cash or other property awarded in
8 the game. Such reports shall be made on forms prescribed by
9 the commission and accompanied by such supporting vouchers as
10 required by the commission and shall be open to inspection to
11 the public in the offices of the commission during ordinary
12 business hours.
13 (3) For purposes of the above two paragraphs, "year"
14 shall mean the 365 days immediately preceding the day on
15 which the licensee's license shall expire.
16 (4) The licensee shall maintain such records, evidencing
17 such licensee's compliance with this subsection, as
18 prescribed by the commission, for a period of two years after
19 reports are submitted under this subsection. Such records
20 shall be open to inspection of the commission and the Auditor
21 General.
22 (b) Restriction on expenditures.--
23 (1) Except for moneys and other property distributed or
24 expended pursuant to subsection (a), no licensee shall expend
25 any of the gross receipts from the sale of chances or the
26 conducting of gambling activities for any purpose other than
27 a lawful purpose of such organization or for contributions to
28 another charitable organization.
29 (2) The licensee shall maintain such records, evidencing
30 such licensee's compliance with this subsection, as
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1 prescribed by the commission, for a period of two years after
2 reports are submitted to the commission under subsection (a).
3 Such records shall be open to inspection of the commission
4 and the Auditor General.
5 (c) Age limitation.--
6 (1) No licensee shall permit any person under the age of
7 18 to participate in the conducting of any gambling activity
8 as a purchaser or seller or to purchase chances: Provided,
9 That this subsection shall not prohibit any person under the
10 age of 18 from selling chances, nor shall it prohibit any
11 person under the age of 18 from purchasing chances in any
12 game in which property other than cash and valued at less
13 than $10 is awarded.
14 (2) Any licensee willfully or negligently violating this
15 subsection personally or through its agent shall be guilty of
16 a summary offense and, upon conviction, be required to pay a
17 fine not exceeding $100.
18 (d) Revocation of license.--The commission shall revoke the
19 license of any licensee, and such licensee shall be ineligible
20 to hold any license for a period of two years following such
21 revocation, who:
22 (1) violates subsection (a) or (b); or
23 (2) is convicted of five or more offenses under
24 subsection (c) during any six-month period.
25 Section 5. Disposition of license fees.
26 Fifty dollars of each license fee shall be delivered over by
27 the Commission on Charitable Organizations to the General Fund
28 of this Commonwealth. Fifty dollars of each license fee shall be
29 delivered over by the Commission on Charitable Organizations to
30 the State Lottery Fund.
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1 Section 6. Sale of chances outside of area of license.
2 (a) Restriction on sales.--No licensee or its agent shall
3 sell chances in any county for which such licensee does not have
4 a license, nor shall any licensee sell chances in any city,
5 township or borough, within the county, which is not
6 specifically enumerated in the license: Provided, That a
7 licensee may sell chances in a county for which such licensee
8 does not have a license, whether or not such sales have been
9 authorized by the county under section 2(a), or in a city,
10 township, or borough, within the county, which is not
11 specifically enumerated in the license, if:
12 (1) no more than 10% of the gross receipts on the sale
13 of chances for any year are obtained from sale of chances in
14 a county for which such licensee does not have a license and
15 in cities, townships, and boroughs, within the county, which
16 are not specifically enumerated in the license; and
17 (2) no more than 25 persons are assembled for the
18 purpose of selling chances in the same place and at one time,
19 in a county for which such licensee does not have a license
20 or in a city, township, or borough, within the county, which
21 is not specifically enumerated in the license. For purposes
22 of this paragraph "year" shall mean the 365 days immediately
23 preceding the day on which the licensee's license shall
24 expire. No licensee or its agent shall conduct gambling
25 activities in any county for which such licensee does not
26 have a license, nor shall any licensee conduct gambling
27 activities in any city, township, or borough, within the
28 county, which is not specifically enumerated in the license.
29 (b) Maintenance and inspection of records.--The licensee
30 shall maintain such records, evidencing such licensee's
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1 compliance with this section, as prescribed by the commission,
2 for a period of two years after reports are submitted under
3 section 4. Such records shall be open to inspection of the
4 commission and the Auditor General.
5 (c) Forfeiture upon violation.--Any licensee willfully or
6 negligently violating any provision of this section, either
7 personally or through its agent, shall forfeit all gross
8 receipts, for the year in which such violation occurs, on the
9 sale of chances and conducting of gambling activities in any
10 county for which such licensee does not have a license or in any
11 city, township, or borough, within the county, which is not
12 specifically enumerated in the license. All such sums so
13 forfeited shall be delivered over by the Commission on
14 Charitable Organizations to the State Lottery Fund. For purposes
15 of this subsection, "year" shall mean the 365 days immediately
16 preceding the day on which the licensee's license shall expire.
17 Section 7. Illegal lotteries.
18 (a) Summary offense.--Any person, group, association,
19 partnership, corporation, or other organization selling chances
20 or conducting gambling activities without obtaining a license
21 under section 3 shall be guilty of a summary offense and, upon
22 conviction, shall pay a fine of not less than $500 and not more
23 than $1,000 and forfeit all gross receipts from the sale of
24 chances or the conducting of gambling activities during such
25 period as such person, group, association, partnership,
26 corporation, or other organization has sold chances or conducted
27 gambling activities without a license. All such sums so
28 forfeited shall be delivered over by the Commission on
29 Charitable Organizations or by the sentencing magistrate to the
30 State Lottery Fund.
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1 (b) Conviction no bar to further prosecution.--A conviction
2 under this section shall not be a bar to any prosecution under
3 any section of Title 18 of the Pennsylvania Consolidated
4 Statutes (relating to crimes and offenses).
5 (c) Ineligibility to hold license.--Any person, group,
6 association, partnership, corporation, or other organization
7 convicted under this section or under 18 Pa.C.S. §§ 5512, 5513
8 or 5514 shall be ineligible to hold any license under this act
9 for a period of two years following such conviction.
10 Section 8. Civil remedies.
11 (a) Actions to enforce; venue.--The Commission on Charitable
12 Organizations may bring suit to enforce any section of this act
13 other than sections 4(c) and 7 and to recover any forfeitures
14 imposed by any section of this act. Such suit shall be brought
15 in the court of common pleas for any county in which such
16 person, group, association, partnership, corporation, or other
17 organization maintains its principal place of business, has sold
18 chances, or has conducted gambling activities.
19 (b) Period of limitations.--All actions brought under this
20 act shall be commenced within two years of the violation
21 complained of, unless such violation has been concealed through
22 fraud, in which case the action shall be commenced within two
23 years of the discovery of such fraud.
24 Section 9. Appeal of license denial or revocation.
25 Any person, group, association, partnership, corporation, or
26 other organization whose application for a license has been
27 denied or whose license has been revoked may appeal to the
28 Commonwealth Court within 30 days of such denial or revocation.
29 Section 10. Selling of chances by political organizations.
30 (a) Restitution on value of award and gambling.--Any
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1 organization or committee formed for the purposes of nominating,
2 endorsing, or supporting any candidate or candidates for elected
3 office may sell chances so long as the total value of all cash
4 or other property awarded in any game does not exceed $100. No
5 such organization or committee may conduct gambling activities
6 and any such organization or committee conducting gambling
7 activities shall be subject to the penalties provided in section
8 7, including forfeiture of all gross receipts from such gambling
9 activities.
10 (b) License or reports not required.--No such organization
11 or committee shall be required to obtain a license under section
12 3 or to file any reports with or maintain any records for the
13 Commission on Charitable Organizations, but all gross receipts
14 on the sale of chances shall be deemed to be political
15 contributions and shall be filed and reported in accordance with
16 sections 3227 and 3228 of the act of June 3, 1937 (P.L.1333,
17 No.320), known as the "Pennsylvania Election Code."
18 (c) Age limitation; penalty.--No organization or committee
19 authorized to sell chances under this section shall willfully or
20 negligently, through itself or its agents, permit the purchase
21 or sale of chances by any person under the age of 18. Any such
22 organization or committee violating this subsection shall be
23 guilty of a summary offense and shall, upon conviction, pay a
24 fine of not less than $100 and not more than $300.
25 Section 11. Effective date.
26 This act shall take effect in 60 days.
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