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                                                      PRINTER'S NO. 2613

THE GENERAL ASSEMBLY OF PENNSYLVANIA


HOUSE BILL

No. 1869 Session of 2007


        INTRODUCED BY SONNEY, BRENNAN, J. EVANS, EVERETT, GINGRICH,
           GRUCELA, HARKINS, HENNESSEY, JAMES, M. KELLER, KENNEY,
           KILLION, KORTZ, KULA, MARSHALL, PETRARCA, PYLE, RAPP,
           REICHLEY, ROAE, SAINATO, SEIP, SIPTROTH, SOLOBAY, J. WHITE
           AND WOJNAROSKI, OCTOBER 15, 2007

        REFERRED TO COMMITTEE ON GAMING OVERSIGHT, OCTOBER 15, 2007

                                     AN ACT

     1  Amending the act of December 19, 1988 (P.L.1262, No.156),
     2     entitled, as amended, "An act providing for the licensing of
     3     eligible organizations to conduct games of chance, for the
     4     licensing of persons to distribute games of chance, for the
     5     registration of manufacturers of games of chance, and for
     6     suspensions and revocations of licenses and permits;
     7     requiring records; providing for local referendum by
     8     electorate; and prescribing penalties," further providing for
     9     licensing of eligible organizations to conduct games of
    10     chance.

    11     The General Assembly of the Commonwealth of Pennsylvania
    12  hereby enacts as follows:
    13     Section 1.  Section 10 of the act of December 19, 1988
    14  (P.L.1262, No.156), known as the Local Option Small Games of
    15  Chance Act, amended December 19, 1990 (P.L.812, No.195) and
    16  October 18, 2000 (P.L.602, No.79), is amended to read:
    17  Section 10.  Licensing of eligible organizations to conduct
    18                 games of chance.
    19     (a)  License required.--No eligible organization shall
    20  conduct or operate any games of chance unless such eligible


     1  organization has obtained and maintains a valid license issued
     2  pursuant to this section. Auxiliary groups within eligible
     3  organizations shall be eligible to conduct small games of chance
     4  using the license issued to the eligible organization provided
     5  that the auxiliary group or groups are listed on the application
     6  and license of the eligible organization. No additional
     7  licensing fee shall be charged for an auxiliary group's
     8  eligibility under this act. Auxiliary groups shall not include
     9  branches, lodges or chapters of a Statewide organization.
    10     (b)  Issuance and fees.--The licensing authority shall
    11  license, upon application, within 30 days any eligible
    12  organization meeting the requirements for licensure contained in
    13  this act to conduct and operate games of chance at such
    14  locations within the county or in such manner as stated on the
    15  application as limited by subsection (b.1). The license fee to
    16  be charged to each eligible organization shall be $100, except
    17  for limited occasion licenses which shall be $10. Licenses shall
    18  be renewable annually upon the anniversary of the date of issue.
    19     (b.1)  Location of small games of chance.--Where there exists
    20  a location or premises which is the normal business or operating
    21  site of the eligible organization and is owned or leased by that
    22  eligible organization to conduct its normal business, that site
    23  shall be the licensed premises for small games of chance
    24  conducted by the eligible organization. If that location
    25  consists of more than one building and the eligible organization
    26  wishes to conduct its games in a different building at that
    27  location from the one that is listed on its application and
    28  license, the eligible organization must notify, in writing, the
    29  district attorney and the licensing authority of the change in
    30  building site and the dates and times that will be affected.
    20070H1869B2613                  - 2 -     

     1  When an eligible organization does not own or lease a specific
     2  location to conduct its normal business, that eligible
     3  organization may use another eligible organization's premises to
     4  conduct its games or may make such other arrangements that are
     5  consistent with this act, including, but not limited to, leasing
     6  a premise under a written agreement for a rental which is not
     7  determined by either the amount of receipts realized from the
     8  playing of games of chance nor the number of people attending
     9  except that an eligible organization may lease a facility for a
    10  banquet where a per head charge is applied in connection with
    11  the serving of a meal. When such eligible organization changes
    12  the site of its games from that which is listed on its
    13  application and license, the eligible organization must notify,
    14  in writing, the district attorney and licensing authority of the
    15  change in their games' site and dates and times that will be
    16  affected.
    17     (b.2)  Off-premises games of chance.--Notwithstanding any
    18  other provisions of this section, an eligible organization may
    19  conduct small games of chance at a location off its premises
    20  when such games are part of an annual carnival, fair, picnic or
    21  banquet held or participated in by that eligible organization on
    22  a historical basis. The eligible organization must notify, in
    23  writing, the district attorney and licensing authority of the
    24  location, date and times of such events where it will be
    25  conducting small games of chance.
    26     (b.3)  Limited occasion licenses.--Eligible organizations
    27  which do not own their own premises or which do not lease a
    28  specific location to conduct their normal business may apply for
    29  a limited occasion license to conduct small games of chance on
    30  not more than three occasions covering a total of seven days
    20070H1869B2613                  - 3 -     

     1  during a licensed year. A limited occasion license entitles
     2  eligible organizations holding such a license to conduct no more
     3  than two raffles during a licensed year where prizes may not
     4  exceed the established limits for regular monthly raffles.
     5  Holders of limited occasion licenses may not apply or be granted
     6  any other license or special permit under this act. No holder of
     7  a regular license or special permit under this act shall apply
     8  or be granted a limited occasion license.
     9     (b.4)  Gambling facility prohibited.--It shall be unlawful
    10  for a person, corporation, association, partnership or other
    11  business entity to offer for rent or offer for use a building or
    12  facility to be used exclusively for the conducting of small
    13  games of chance. It shall also be unlawful for any eligible
    14  organization to lease under any terms a facility or building
    15  which is used exclusively for the conducting of small games of
    16  chance.
    17     (c)  Display.--Licenses issued pursuant to this section shall
    18  be publicly displayed at the site of the small games of chance.
    19     (d)  Operation.--Each licensed eligible organization shall
    20  comply with the following restrictions and rules governing the
    21  operation of games of chance:
    22         (1)  No person under 18 years of age shall be permitted
    23     to operate or play games of chance.
    24         (2)  No eligible organization shall permit any person who
    25     has been convicted of a felony in a Federal or State court
    26     within the past five years or has been convicted in a Federal
    27     or State court within the past ten years of a violation of
    28     the act of July 10, 1981 (P.L.214, No.67), known as the Bingo
    29     Law, or of this act to manage, set up, supervise or
    30     participate in the operation of games of chance.
    20070H1869B2613                  - 4 -     

     1         (3)  No eligible organization shall pay any compensation
     2     to any person for conducting any games of chance. Games of
     3     chance may only be conducted by managers, officers,
     4     directors, bar personnel and bona fide members of the
     5     eligible organization.
     6         (4)  Games shall be conducted only on the licensed
     7     premises or as otherwise provided by this act.
     8         (5)  The eligible organization shall not lease such
     9     premises under either an oral or a written agreement for a
    10     rental which is determined by either the amount of receipts
    11     realized from the playing of games of chance or the number of
    12     people attending, except that an eligible organization may
    13     lease a facility for a banquet where a per head charge is
    14     applied in connection with the serving of a meal. An eligible
    15     organization shall not lease such premises from any person
    16     who has been convicted of a violation of this act within the
    17     past ten years.
    18         (6)  Games, other than raffles, daily drawings and weekly
    19     drawings, shall be purchased only from manufacturers and
    20     distributors approved by the department.
    21         (7)  No licensed eligible organization shall permit its
    22     premises to be used for small games of chance by another
    23     licensed eligible organization at the same time that it is
    24     conducting small games of chance on the premises. When a
    25     licensed eligible organization is permitting another licensed
    26     eligible organization to use its premises for purposes of
    27     small games of chance, it must cease the operation of its own
    28     small games of chance during the period that the other
    29     licensed eligible organization is conducting its games on the
    30     premises.
    20070H1869B2613                  - 5 -     

     1         (8)  (i)  Raffle tickets may be sold off the licensed
     2         premise in any municipality in this Commonwealth which
     3         has adopted the provisions of this act by an affirmative
     4         vote in a municipal referendum. A licensed eligible
     5         organization which plans to sell raffle tickets in a
     6         municipality located in a county other than the county in
     7         which the eligible organization is licensed must notify
     8         that county's district attorney and licensing authority
     9         as to the location and the dates that the eligible
    10         organization plans to sell raffle tickets.
    11             (ii)  Raffle tickets may be sold off the licensed
    12         premises in any licensed eating place, restaurant or
    13         retail dispenser as defined under section 102 of the act
    14         of April 12, 1951 (P.L.90, No.21), known as the Liquor
    15         Code. A licensed eligible organization which plans to
    16         sell raffle tickets at any licensed eating place,
    17         restaurant or retail dispenser must notify the county's
    18         district attorney and licensing authority as to the
    19         location of the eating place, restaurant or retail
    20         dispenser and the dates that the eligible organization
    21         plans to sell raffle tickets at the club.
    22     (e)  Application for license.--Each eligible organization
    23  shall apply to the licensing authority for a license on a form
    24  to be prescribed by the Secretary of Revenue. The form shall
    25  contain an affidavit to be affirmed by the executive officer or
    26  secretary of the eligible organization stating that:
    27         (1)  No person under 18 years of age will be permitted by
    28     the eligible organization to operate or play games of chance.
    29         (2)  The facility in which the games of chance are to be
    30     played has adequate means of ingress and egress and adequate
    20070H1869B2613                  - 6 -     

     1     sanitary facilities available in the area.
     2         (3)  The eligible organization is not leasing such
     3     premises from the owner thereof under an oral agreement, nor
     4     is it leasing such premises from the owner thereof under a
     5     written agreement at a rental which is determined by the
     6     amount of receipts realized from the playing of games of
     7     chance or by the number of people attending, except that an
     8     eligible organization may lease a facility for a banquet
     9     where a per head charge is applied in connection with the
    10     serving of a meal.
    11     (f)  List of licensees.--The licensing authority, on a
    12  semiannual basis, shall send a copy of all licensees to the
    13  Department of Revenue.
    14     (g)  List of municipalities.--The licensing authority shall
    15  include with any license or renewal issued to an eligible
    16  organization, an up-to-date listing of those municipalities
    17  within the licensing county which have approved the referendum
    18  question on small games of chance.
    19     Section 2.  This act shall take effect in 60 days.








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