AN ACT

 

1Amending the act of December 19, 1988 (P.L.1262, No.156),
2entitled, as amended, "An act providing for the licensing of
3eligible organizations to conduct games of chance, for the
4licensing of persons to distribute games of chance, for the
5registration of manufacturers of games of chance, and for
6suspensions and revocations of licenses and permits;
7requiring records; providing for local referendum by
8electorate; and prescribing penalties," in preliminary
9provisions, further providing for definitions <-and providing 
10for relationship to table games; in games of chance, further
11providing for games of chance permitted, for prize limits,
12for regulations of the Department of Revenue and for
13licensing of eligible organizations to conduct games of
14chance; in club licensees, further providing for reports by a
15club licensee and for distribution of proceeds; in
16enforcement, further providing for revocation of licenses and 
17for enforcement by the Bureau of Liquor Control Enforcement;
<-18providing for social card games; and abrogating regulations.

19The General Assembly of the Commonwealth of Pennsylvania
20hereby enacts as follows:

<-21Section 1. The definitions of "games of chance" and "public
22interest purpose" in section 103 of the act of December 19, 1988

1(P.L.1262, No.156), known as the Local Option Small Games of
2Chance Act, amended February 2, 2012 (P.L.7, No.2), are amended
3and the section is amended by adding definitions to read:

<-4Section 1. The definitions of "games of chance," "public 
5interest purpose" and "raffle" in section 103 of the act of 
6December 19, 1988 (P.L.1262, No.156), known as the Local Option 
7Small Games of Chance Act, amended February 2, 2012 (P.L.7, 
8No.2) and October 24, 2012 (P.L.1462, No.184), are amended and 
9the section is amended by adding definitions to read:

10Section 103. Definitions.

11The following words and phrases when used in this act shall
12have the meanings given to them in this section unless the
13context clearly indicates otherwise:

<-14* * *

15"A night at the races." A game in which a participant places
16a wager on a prerecorded horse race.

17* * *

18"Coin auction." A game in which a participant buys a
19numbered paddle for a chance to bid on a donated prize with the
20winner determined by a random drawing of corresponding numbers.

21 * * *

22"Games of chance." Punchboards, daily drawings, weekly
23drawings, 50/50 drawings, raffles, selective raffles, poker 
24runs, coin auctions, <-a night at the races, Texas Hold'em card 
25tournament, <-race night games, vertical wheel game and pull-tabs,
26as defined in this act, provided that no such game<-, except for a 
27vertical wheel game, shall be played by or with the assistance
28of any mechanical or electrical devices or media other than a
29dispensing machine or passive selection device and further
30provided that the particular chance taken by any person in any

1such game shall not be made contingent upon any other occurrence
2or the winning of any other contest, but shall be determined
3solely at the discretion of the purchaser. This definition shall
4not be construed to authorize any other form of gambling
5currently prohibited under any provision of Title 18 of the
6Pennsylvania Consolidated Statutes (relating to crimes and
7offenses) or authorized under 4 Pa.C.S. (relating to
8amusements). Nothing in this act shall be construed to authorize
9games commonly known as "slot machines" or "video poker."

10* * *

11"Poker run." A game in which all of the following occur:

12(1) Participants meet at <-an eligible organization's 
13licensed premises <-a designated location to receive
14instructions for the event.

15(2) Each participant receives a detailed explanation of
16the game destinations and a score card which will be
17completed as they progress to each destination.

18(3) At each designated stop on the run route, the
19participant draws or is dealt a card at random. The card
20which is drawn or dealt is recorded on the participant's
21score card.

22(4) A winner is determined as the participant which
23makes the <-best five-card highest poker hand at the end of the
24event.

25* * *

26"Public interest purpose." One or more of the following:

27(1) [The activities and operations of a nonprofit<-] 
28Providing benevolent, religious, educational, philanthropic, 
29humane, scientific, patriotic, social welfare, social 
30advocacy, public health, public safety, emergency response, 

1environmental [or civic objective<-], historic preservation, 
2conservation, athletic, sportsman's safety and education or 
3civic services or benefits.

4(2) Initiating, performing or fostering worthy public
5works or enabling or furthering the erection or maintenance
6of public structures.

7(3) Lessening the burdens borne by government or
8voluntarily supporting, augmenting or supplementing services
9which government would normally render to the people.

10(4) Improving, expanding, maintaining or repairing real
11property owned or leased by an eligible organization and
12relating operational expenses used for purposes specified in
13paragraphs (1), (2) and (3).

14The term does not include the erection or acquisition of any
15real property, unless the property will be used [exclusively]
16for one or more of the purposes specified in this definition.

17* * *

<-18"Race night game." A game in which a participant places a
19wager on a prerecorded horse race.

20"Raffle." A game of chance in which a participant buys a
21ticket for a chance at a prize with the winner determined by a
22random drawing of corresponding ticket stubs to take place at a
23location and date or dates printed upon each ticket. Such games
24of chance shall include lotteries but not daily drawings. Raffle
25winners may be determined by reference to drawings conducted by
26the department pursuant to the act of August 26, 1971 (P.L.351,
27No.91), known as the State Lottery Law. The term includes a 
28reverse raffle.

29* * *

30"Selective raffle." A game in which all of the following

1occur:

2(1) The participant buys a ticket or tickets for a
3chance to win a donated prize.

4(2) The participant places the ticket or tickets in a
5designated location for the prize which the participant would
6like to win.

7(3) The winner for each prize is determined by a random
8drawing of tickets with a corresponding number for the prize.

<-9"Texas Hold'em card tournament." A community card game where
10each player may use any combination of five community cards and
11the player's own two hole cards to make a five-card poker hand.

12"Vertical wheel game." A game in which a participant places
13a coin or token on a color, number or word or purchases a ticket
14containing a color, number or word and watches a spinning
15vertical wheel until the pointer of the wheel rests on a section
16of the wheel designating a winner.

17* * *

<-18Section 2. The act is amended by adding a section to read:

19Section 104. Relationship to table games.

20A vertical wheel game or a Texas Hold'em card tournament is
21not a "table game" as defined in 4 Pa.C.S. § 1103 (relating to
22definitions). The designation of a vertical wheel game and Texas
23Hold'em card tournament under this act does not preclude the
24authorization of a vertical wheel game or a Texas Hold'em card
25tournament as a table game under 4 Pa.C.S. Pt. II (relating to
26gaming).

27Section <-3 2. Section 301 of the act, amended October 24,
282012 (P.L.1462, No.184), is amended to read:

29Section 301. Games of chance permitted.

<-30(a) General rule.--Every eligible organization to which a 

1license has been issued under the provisions of this chapter may 
2conduct games of chance for the purpose of raising funds for 
3public interest purposes. Except as provided in Chapter 5, all 
4proceeds of a licensed eligible organization shall be used 
5exclusively for public interest purposes, for the purchase of 
6games of chance, for the payment of the license fee or for the 
7payment of the fee for background checks, as required by this 
8act. An eligible organization, except a club licensee, may use
9the proceeds received from games of chance conducted by the 
10eligible organization to fulfill the <-organization's own public 
11interest purpose. <-public interest purpose of the eligible 
12organization.

13(b) Relationship to table games.--A vertical wheel game or a
14Texas Hold'em card tournament is not a "table game" as defined
15in 4 Pa.C.S. § 1103 (relating to definitions). The designation
16of a vertical wheel game and Texas Hold'em card tournament under
17this act does not preclude the authorization of a vertical wheel
18game or a Texas Hold'em card tournament as a table game under 4
19Pa.C.S. Pt. II (relating to gaming).

20Section 4<-. Section 302 of the act is amended by adding a
21subsection to read:

22Section 302. Prize limits.

23* * *

24(e.1) Texas Hold'em requirements.--A licensed eligible
25organization shall charge an entry fee of not more than $10 per
26person to play in a Texas Hold'em tournament. The licensed
27eligible organization shall pay out prizes to no more than the
28top five winning persons in a declining manner based on the
29player's final placement in the tournament. The prize pool shall
30consist solely of entry fees collected.

1* * *

<-2Section 3. Section 302 of the act, amended February 2, 2012
3(P.L.7, No.2), is amended to read:

4Section 302. Prize limits.

5(a) Individual prize limit.--Except as provided under
6subsections (d) and (d.1), the maximum prize which may be
7awarded for any single chance shall be $1,000.

8(b) Aggregate prize limit.--No more than [$25,000] $35,000
9in prizes shall be awarded from games of chance by a licensed
10eligible organization in any seven-day period.

11(c) Raffle prize limit.--Up to $10,000 in prizes may be
12awarded in raffles in any calendar month.

13(c.1) Total limit.--All prizes awarded under this section
14shall be subject to the aggregate prize limits under subsection
15(b).

16(d) Exception for raffles.--Notwithstanding subsection (b)
17or (c), a licensed eligible organization may conduct a raffle
18and award a prize or prizes valued in excess of $1,000 each only
19under the following conditions:

20(1) The licensing authority has issued a special permit
21for the raffle under section 308.

22(2) A licensed eligible organization shall be eligible
23to receive no more than eight special permits in any licensed
24term except that a volunteer fire, ambulance or rescue
25organization that is not a club licensee shall be eligible to
26receive ten special permits in any licensed term.

27(3) Only one raffle may be conducted under each special
28permit issued under section 308.

29(4) Except as provided under subsection (d.1), the total
30of all prizes awarded under this subsection shall be no more

1than $100,000 per calendar year.

2(d.1) Additional award.--A volunteer fire, ambulance or
3rescue organization may, in addition to the total under
4subsection (d)(4), award up to $50,000 from raffles which shall
5not be subject to the aggregate limit under subsection (b), (c)
6or (d).

7(e.1) Texas Hold'em requirements.--A licensed eligible
8organization shall charge an entry fee of not more than $10 per
9person to play in a Texas Hold'em tournament. The licensed
10eligible organization shall pay out prizes to no more than the
11top five winning persons in a declining manner based on the
12player's final placement in the tournament. The prize pool shall
13consist solely of entry fees collected.

14(f) Daily drawing carryover.--The prize limitation contained
15in subsections (a) and (b) may be exceeded by a daily drawing
16under the following circumstances: a daily drawing may award a
17prize in excess of $1,000 if such prize is the result of a
18carryover of a drawing which resulted from the winning number in
19such drawing not being among the eligible entrants in such
20drawings. Nothing contained herein shall authorize the prize
21limitation as contained in subsections (a) and (b) to be
22exceeded as a result of a failure to conduct a drawing on an
23operating day during which chances were sold for a daily drawing
24or for a daily drawing for which chances were sold in excess of
25$1 or for which more than one chance was sold to an eligible
26participant.

27(g) Additional exception.--When a daily drawing or weekly
28drawing is set up or conducted in such a manner as to pay out or
29award 100% of the gross revenues generated from such drawing,
30the limitation contained in subsection (b) shall not apply.

1(h) Weekly drawing carryover exception.--Weekly drawings
2shall be governed by the prize limitation contained in
3subsection (b). The prize limitation contained in subsection (b)
4may be exceeded by a weekly drawing under the following
5circumstances: a weekly drawing may award a prize where the cash
6value is in excess of [$25,000] $35,000 if such prize is the
7result of a carryover of a drawing or drawings which resulted
8from the winning number or numbers in such drawing or drawings
9not being among the eligible entrants in such drawings. Nothing
10contained in this chapter shall authorize the prize limitation
11under subsection (b) to be exceeded as a result of a failure to
12conduct a drawing for a week during which chances were sold for
13a weekly drawing or for a weekly drawing for which chances were
14sold in excess of $1.

15Section <-5 4. Section 306(b) and (c) of the act, amended
16October 24, 2012 (P.L.1462, No.184), are amended and the section
17is amended by adding subsections to read:

18Section 306. Regulations of department.

19* * *

20(a.1.) Review.--The department shall, on an annual basis,
21review <-this act and regulations promulgated the regulations 
22adopted under this act to determine if <-the regulations relating
23to games of chance require revision<-. If the department 
24determines that the regulations need modification, the 
25department may promulgate such regulations within 60 days of its 
26review.

27(a.2) Expansion.--The department may authorize any
28additional games of chance for eligible organizations, except
29for club licensees, and promulgate regulations it deems
30necessary for such additional games of chance. The department

1may consult with law enforcement officials responsible for
2enforcement of this act prior to authorizing any additional
3games of chance. Additional games of chance shall not include
4any games that require Internet access for play. <-or abrogation. 
5The department shall submit a report to the General Assembly by 
6March 1, 2015, and every two years thereafter. The report shall 
7include recommendations for changes to this act or to 
8regulations adopted under this act, if any, including 
9recommendations for additional games of chance. The 
10recommendations for additional games of chance shall not include 
11any game regulated by the Pennsylvania Gaming Control Board 
12under 4 Pa.C.S. (relating to amusements), keno games or any game 
13that requires Internet access to play. The report shall be 
14submitted to the Majority Leader and Minority Leader of the 
15Senate, the Majority Leader and Minority Leader of the House of 
16Representatives and the chairperson and minority chairperson of 
17the standing committees of the Senate and the chairperson and 
18minority chairperson of the standing committees of the House of 
19Representatives with jurisdiction over this act.

20(b) Limitation on recordkeeping requirements.--This section
21shall not be construed to authorize the department to promulgate
22regulations providing for recordkeeping requirements for
23licensed eligible organizations which require unreasonable or
24unnecessary information or a repetitious listing of information.
25The department shall strive to keep such recordkeeping
26requirements from being an undue hardship or burden on licensed
27eligible organizations. For individual prizes of $600 or more, 
28records shall include the name and address of the winner. An 
29eligible organization shall not obtain or retain receipts of 
30prizes that are donated. An eligible organization shall provide 

1each winner with a receipt of the value of the prize won <-of $600 
2or more, unless the prize is cash. Except as provided under 
3section 701(b), the department may not require the retention of
4records for a period in excess of two years.

5(c) Reporting requirements.--[Each eligible organization
6which has proceeds in excess of $2,500 in a calendar year shall
7submit an annual report to the department including:] Except for 
8an organization licensed under section 307(b)(1)(i), each 
9eligible organization shall submit an annual report to the 
10department for the 12-month period commencing upon the 
11anniversary of the date the license was issued. The form for the 
12report shall be available in hard copy <-from the licensing 
13authority and electronically from the department's Internet 
14website. The report may be submitted by mail to the department 
15or through the department's Internet website. The report shall 
16include the following:

17(1) Prizes awarded as required under section 335 of the
18act of March 4, 1971 (P.L.6, No.2), known as the Tax Reform
19Code of 1971.

20(2) Amounts expended for public interest purposes.

21Section <-6 5. Section 307(a), (b), (b.1), (b.2), (b.3), (d.1)
22and (h) of the act, amended February 2, 2012 (P.L.7, No.2) and
23October 24, 2012 (P.L.1462, No.184), are amended and subsection
24(b.1) is amended by adding a paragraph to read:

25Section 307. Licensing of eligible organizations to conduct
26games of chance.

27(a) License required.--No eligible organization shall
28conduct or operate any games of chance unless such eligible
29organization has obtained and maintains a valid license [or 
30limited occasion license] issued pursuant to this section. An 

1auxiliary group of a licensed eligible organization shall be
2eligible to conduct games of chance using the license issued to
3the eligible organization provided that the auxiliary group [or
4groups are] is listed on the application and license of the
5eligible organization. An auxiliary group is not eligible to 
6obtain a license [or a limited occasion license]. No additional
7licensing fee shall be charged to an eligible organization for
8an auxiliary [group's eligibility under this chapter. Auxiliary
9groups] group of the organization. An auxiliary group shall not
10include branches, lodges or chapters of a Statewide
11organization.

12(b) Issuance and fees.--The following shall apply:

13(1) [The licensing authority shall license, upon
14application, within 30 days any eligible organization] Within 
1530 days of receiving an application from an organization, the 
16licensing authority shall grant a license to an eligible 
17organization meeting the requirements for licensure contained
18in this chapter to conduct and operate games of chance at
19such locations within the county or in such manner as stated
20on the application as limited by subsection (b.1). The
21license fee to be charged to [each] an eligible organization
22shall be [$100, except for limited occasion licenses which
23shall be $10] <-as follows:

24(i) For an eligible organization making $40,000 or
25less a year in proceeds from games of chance, $25.

26(ii) For an eligible organization making more than 
27$40,000 in proceeds from games of chance, $100. <-$25, 
28unless the eligible organization made more than $40,000 
29in proceeds from games of chance in the previous 
30licensing year. If an eligible organization made more 

1than $40,000 in proceeds from games of chance in the 
2previous licensing year, the license fee shall be $100.

3(2) Licenses shall be [renewable annually upon] issued 
4for a period of one year and may be renewed on or after the
5anniversary of the date of issue. The license fee shall be 
6used by the licensing authority to administer this act.

7(b.1) Location of games of chance.--

8(1) Except as otherwise provided in this section, a
9licensed eligible organization[, except a limited occasion
10licensee,] may conduct small games of chance at a licensed
11premises. The licensed premises shall be indicated on the
12eligible organization's license application. [Only one
13license shall be issued per licensed premises. Except as
14provided under paragraph (4), a licensed eligible
15organization may not share a licensed premises with another
16licensed eligible organization; and no licensed eligible
17organization may permit its premises to be used for small
18games of chance by another licensed eligible organization.]

19(2) Where there exists a location or premises which is
20the normal business or operating site of the eligible
21organization and the location or premises is owned or leased
22by that eligible organization to conduct its normal business,
23that site shall be the eligible organization's licensed
24premises. If that location consists of more than one
25building, the eligible organization shall identify the 
26building that will be designated as the licensed premises.

27(2.1) An eligible organization <-may request approval 
<-28must notify the district attorney to conduct games of chance
29in a different location from the location of the licensed 
30premise that is listed on the eligible organization's

1application and license. The <-eligible organization must 
2submit a written request to the district attorney, including 
<-3notification must include the address of the new location and
4the dates and times the games of chance will be conducted at
5the new location. <-The district attorney may approve or deny 
6the request in writing or stipulate additional requirements 
7as a condition of approval.

8(3) When an eligible organization does not own or lease
9a specific location to conduct its normal business, the
10eligible organization may use the premise of another eligible 
11organization to conduct games of chance or may make
12arrangements that are consistent with this act to establish a 
13licensed premises, including leasing a premise under a
14written agreement for a rental; however, the rental may not 
15be determined by either the amount of receipts realized from
16the conduct of games of chance or the number of people
17attending. An eligible organization may lease a facility for
18a banquet in connection with the serving of a meal based on a 
19per-head charge. Prior to the use of the premises of another 
20eligible organization to conduct games of chance, an eligible 
21organization must notify<-, in writing, the district attorney 
22regarding the use of the premise of another eligible 
23organization, including the address of the premise and the 
24dates and times the games of chance will be operated.

25[(3.1) Notwithstanding paragraphs (1), (2) and (3), if
26an eligible organization is unable to conduct games of chance
27at the location listed on its application and license due to
28natural disaster, fire or other circumstance that renders the
29location unusable, the eligible organization may submit a
30written request to the district attorney to conduct games of

1chance in a different location, including the licensed
2premises of another eligible organization. The request must
3include the change in the location and the dates and times
4the games of chance will be operated at the alternative
5location. The district attorney shall establish a limit on
6the duration of the authorization to conduct games of chance
7at the alternative location. Following the expiration of the
8authorization period, the eligible organization must return
9to the location specified in its application and license or
10apply to the licensing authority for a new permanent location
11for the conduct of games of chance. The district attorney may
12approve or deny the request or stipulate additional
13requirements as a condition of approval. If an eligible
14organization permits another eligible organization to use its
15licensed premises to conduct games of chance under this
16paragraph, the eligible organization shall cease its
17operation of games of chance during the time the eligible
18organization utilizing its premises is conducting its games
19of chance] (Reserved).

20(3.2) Notwithstanding paragraphs (1), (2) and (3), the
21following eligible organizations established to raise funds
22shall not be required to conduct a 50/50 drawing or a raffle
23at a licensed premises or to own, lease or establish a
24licensed premises:

25(i) A nonprofit sports team.

26(ii) A primary or secondary school-sponsored club,
27sports team or organization.

28[(4) An eligible organization that has obtained a
29limited occasion license under subsection (b.3) may use
30another eligible organization's licensed premises to conduct

1its games of chance. When a licensed eligible organization is
2permitting a limited occasion licensee to use its licensed
3premises for purposes of games of chance, it shall cease the
4operation of its own games of chance during the period that
5the limited occasion licensee is conducting its games on the
6premises.]

7(5) For purposes of major league sports drawings, the
8facility at which a major league sports team conducts its
9games shall constitute a premises for purposes of this act.

10(b.2) Off-premises games of chance.--Notwithstanding any
11other provisions of this section, all of the following apply:

12(1) A licensed eligible organization may conduct games
13of chance at a location off its premises when the games of 
14chance are part of an annual carnival, fair, picnic or
15banquet held or participated in by that licensed eligible
16organization on a historical basis. The licensed eligible
17organization must notify, in writing, the district attorney
18and licensing authority of the location, date and times of
19the event where it will be conducting games of chance.

20(2) Raffle and 50/50 drawing tickets may be sold off the
21licensed premises in a municipality which has adopted the
22provisions of this act by an affirmative vote in a municipal
23referendum. <-[A licensed eligible organization which plans to
24sell raffle <-and 50/50 drawing tickets in a municipality
25located in a county other than the county in which the
26eligible organization is licensed shall notify that county's
27district attorney and licensing authority as to the location
28and the dates that the licensed eligible organization plans
29to sell raffle tickets.<-]

30[(b.3) Limited occasion licenses.--Eligible organizations

1which do not own their own premises or which do not lease a
2specific location to conduct their normal business may apply for
3a limited occasion license to conduct games of chance on not
4more than three occasions covering a total of seven days during
5a licensed year. A limited occasion license entitles an eligible
6organization to conduct no more than two raffles during a
7licensed year where prizes may not exceed the established limits
8for regular monthly raffles. Holders of a limited occasion
9license may not apply or be granted any other license or special
10permit under this act. No holder of a regular license or special
11permit under this act shall apply or be granted a limited
12occasion license.]

13* * *

14(d.1) Bank account and records.--The licensed eligible
15organization, except for an organization licensed under 
16subsection (b)(1)(i), shall keep a bank account to hold the
17proceeds of games of chance, which shall be separate from all
18other funds belonging to the licensed eligible organization.
19Account records shall show all expenditures and income and shall
20be retained by the licensed eligible organization for at least
21two years.

22* * *

23(h) Background checks.--Each application for a license
24submitted by an eligible organization [which has proceeds in
25excess of $2,500 in a year] , except for an organization 
26licensed under subsection (b)(1)(i), shall include the results
27of a criminal history record information check obtained from the
28Pennsylvania State Police, as defined in 18 Pa.C.S. § 9102
29(relating to definitions) and permitted by 18 Pa.C.S. § 9121(b)
30(relating to general regulations), for the executive officer and

1[secretary] treasurer of the eligible organization making the
2application for a license or any other person required by the
3department.

4Section <-7 6. Sections 501 and 502 of the act, added February
52, 2012 (P.L.7, No.2), are amended to read:

6Section 501. Club licensee.

7(a) Report.--

8(1) Beginning in 2013, a club licensee shall submit
9semiannual reports to the department for the preceding six-
10month period on a form and in a manner prescribed by the
11department. The form shall be available in hard copy <-from the 
12licensing authority and electronically from the department's 
13Internet website. The report may be submitted by mail to the 
14department or through the department's Internet website.

15(2) The report must be filed under oath or affirmation
16of an authorized officer of the club licensee.

17(3) The report shall include all of the following
18information:

19(i) The proceeds received by the club licensee from
20each game of chance conducted, itemized by week.

21(ii) The amount of prizes paid from all games of
22chance, itemized by week.

23(iii) Other costs incurred related to the conduct of 
24games of chance.

25(iv) The verification of amounts distributed for 
26public interest purposes itemized under section 
27[502(a)(1)] 502(a)(2)(i), itemized by the recipient.

28(v) An itemized list of expenditures made or amounts 
29retained and expenditures under section [502(a)(2)] 
30502(a)(2)(ii).

1(vi) The address and the county in which the club 
2licensee is located.

3(vii) Other information or documentation required by 
4the department.

5(b) Distribution.--The department shall provide a copy of
6the report to the Bureau of Liquor Control Enforcement.

7(c) Posting.--The reports under subsection (a) shall be
8published on the department's Internet website.

9Section 502. Distribution of proceeds.

10(a) Distribution.--The proceeds from games of chance
11received by a club licensee shall be distributed as follows:

12[(1) No less than 70% of the proceeds shall be paid to
13organizations for public interest purposes in the calendar
14year in which the proceeds were obtained.

15(2) No more than 30% of the proceeds obtained in a
16calendar year may be retained by a club licensee and used for
17the following operational expenses relating to the club
18licensee:

19(i) Real property taxes.

20(ii) Utility and fuel costs.

21(iii) Heating and air conditioning equipment or
22repair costs.

23(iv) Water and sewer costs.

24(v) Property or liability insurance costs.

25(vi) Mortgage payments.

26(vii) Interior and exterior repair costs, including
27repair to parking lots.

28(viii) New facility construction costs.

29(ix) Entertainment equipment, including television,
30video and electronic games.

1(x) Other expenses adopted in regulation by the
2department.]

3(1) $40,000 may be retained by the club licensee. <-There 
4are no <-Except as prohibited by subsection (b)(1), there are 
5no additional restrictions on the use of these proceeds by
6the club licensee.

7(2) Any club licensee proceeds remaining after
8distribution under paragraph (1) shall be distributed as
9follows:

10(i) No less than 70% of the proceeds shall be <-paid 
11to organizations <-used for public interest purposes in the
<-12calendar year in 12-month period from which the proceeds
13were obtained.

14(ii) No more than 30% of the proceeds obtained in a
15calendar year may be retained by a club licensee and used
16for the following operational expenses relating to the
17club licensee:

18(A) Real property taxes.

19(B) Utility and fuel costs.

20(C) Heating and air conditioning equipment or
21repair costs.

22(D) Water and sewer costs.

23(E) Property or liability insurance costs.

24(F) Mortgage payments.

25(G) Interior and exterior repair costs,
26including repair to parking lots.

27(H) New facility construction costs.

28(I) Entertainment equipment, including
29television, video and electronic games.

30(J) Other expenses adopted in regulation by the

1department.

2(a.1) Amounts retained.--Amounts retained by a club licensee
3under subsection (a)(2) shall be expended within [the same
4calendar year] a 12-month period from when the proceeds were 
5received unless the club licensee notifies the department that
6funds are being retained for a substantial purchase or project.
7Notification shall include a description of the purchase or
8project, the <-anticipated cost and the anticipated date of the
9purchase or project.

10(b) Prohibition.--

11(1) Proceeds shall not be used for wages, alcohol or
12food purchases or for the payment of any fine levied against
13the club licensee.

14(2) An officer or employee of a club licensee who
15operates the game of chance shall not participate in the
16game. This paragraph shall not apply to a raffle.

17Section 8 7. Section <-701(b) 701 of the act, amended February
182, 2012 (P.L.7, No.2), is amended to read:

19Section 701. Revocation of licenses.

<-20* * *

<-21(a) Grounds.--The following shall be grounds for suspension, 
22revocation or nonrenewal of a license:

23(1) Any of the proceeds derived from the operation of
24games of chance by an eligible organization are used for any
25purpose other than for:

26(i) public interest purposes;

27(ii) the purchase of games of chance; or

28(iii) a purpose permitted by Chapter 5.

29(1.1) Any of the funds derived from the operation of
30games of chance by a club licensee are used in a manner that

1does not comply with section 502.

2(2) Any person under 18 years of age is operating or
3playing games of chance.

4(3) The eligible organization has permitted any person
5who has been convicted of a felony in a Federal or State
6court within the past five years or has been convicted in a
7Federal or State court within the past ten years of a
8violation of the act of July 10, 1981 (P.L.214, No.67), known
9as the Bingo Law, or of this act, to manage, set up,
10supervise or participate in the operation of games of chance.

11(4) The facility in which the games of chance are played
12does not have adequate means of ingress and egress and does
13not have adequate sanitary facilities available in the area.

14(5) Any person or persons other than a manager, officer,
15director, bar personnel or a bona fide member of an eligible
16organization have been involved in managing, setting up,
17operating or running games of chance.

18(6) Any person has received compensation for conducting
19games of chance.

20(7) Any prize has been awarded in excess of the limits
21permitted under this act.

22(8) The eligible organization has violated any condition
23of a special permit issued pursuant to section 308.

24(9) The eligible organization conducts the games of
25chance under a lease which calls for:

26(i) leasing such premises from the owner thereof
27under an oral agreement; or

28(ii) leasing such premises from the owner thereof
29under a written agreement at a rental which is determined
30by the amount of receipts realized from the playing of

1games of chance.

2(10) False or erroneous information was provided in the
3original application or in any information provided to the 
4licensing authority or the department in any report.

5(11) An eligible organization has been convicted of a
6violation of this act as evidenced by a certified record of
7the conviction.

8[(12) The eligible organization has permitted another
9eligible organization to conduct games of chance on its
10licensed premises without suspending its own operation of
11games of chance during the period that the other licensed
12eligible organization is conducting its games on the
13premises.]

14(13) A club licensee has failed to file an accurate
15report under section 501(a).

16(14) A club licensee has failed to comply with section
17502.

18(15) Failure to file reports under section 501.

19(b) Production of records.--The district attorney may
20require licensees to produce their books, accounts and records
21relating to the conduct of games of chance in order to determine
22if a violation of this act has occurred. Licensees shall also be
23required, upon request, to provide their license, books,
24accounts and records relating to the conduct of games of chance
25to the licensing authority, the Bureau of Liquor Control
26Enforcement or to a law enforcement agency or official. A club
27licensee shall retain records for a period of [five] two years.

28Section <-9 8. Section 702(b) of the act, amended October 24,
292012 (P.L.1462, No.184), is amended to read:

30Section 702. Enforcement.

1* * *

2(b) Bureau of Liquor Control Enforcement.--The following 
3shall apply to enforcement:

4(1) If the licensee is a club licensee, the Bureau of Liquor 
5Control Enforcement may enforce the provisions of this act in 
6accordance with subsection (g). An administrative law judge 
7under section 212 of the act of April 12, 1951 (P.L.90, No.21), 
8known as the Liquor Code, may impose the penalties under 
9subsection (d) following the issuance of a citation by the 
10bureau.

11(2) <-The Unless the Bureau of Liquor Control Enforcement has 
12jurisdiction over a club licensee under section 702(b)(1), the
13Bureau of Liquor Control Enforcement shall have no jurisdiction
14to enforce the provisions of this act on any special occasion
15permit holder under section 408.4 of the act of April 12, 1951
16(P.L.90, No.21), known as the Liquor Code. <-The Bureau of Liquor 
17Control Enforcement shall retain all powers and duties to 
18enforce the provisions of the Liquor Code on a special occasion 
19permit holder.

20* * *

<-21Section 9. The act is amended by adding a chapter to read:

22CHAPTER 8

23SOCIAL CARD GAMES

24Section 801. Definitions.

25The following words and phrases when used in this chapter
26shall have the meanings given to them in this section unless the
27context clearly indicates otherwise:

28"Nonbanking card game." A card game where players play
29against one another rather than against the house. Nonbanking
30card games may include any of the following:

1(1) Poker games.

2(2) Hearts.

3(3) Rummy.

4(4) Pinochle.

5(5) Bid Whist.

6"Nonbanking card game tournament" or "tournament." A series
7of card games held by a licensed eligible organization during a
8consecutive period of time of not more than 24 hours and not
9held as part of any other games of chance.

10"Pyramid" or "build-up." A card game in which a prize must
11be returned in order to play another game or to be eligible for
12another bigger prize, or a game in which the prize must be
13forfeited if a later game is lost.

14"Social card game" or "card game." A nonbanking card game
15that is played by members at the licensed premises of an
16eligible organization.

17Section 802. Authorization to conduct social card games.

18(a) Authorization.--Notwithstanding any provision of 18
19Pa.C.S. (relating to crimes and offenses) or of this act or any
20other law or regulation to the contrary, social card games may
21be played at the licensed premises of an eligible organization
22in accordance with the requirements of this chapter.

23(b) Conditions.--The following shall apply:

24(1) Card games may only be played by and between members
25of the eligible organization.

26(2) The eligible organization or any other person shall
27not have an interest, financial or otherwise, in the outcome
28of any card game.

29(3) Only nonbanking card games may be played with
30members playing against each other.

1(4) Wagering shall be entirely at the discretion of each
2player.

3(5) The maximum prize or payout for a card game shall be
4limited to $100.

5(6) The eligible organization shall not charge a fee for
6play.

7(7) Not more than ten members may play at any table in a
8card game.

9(8) Card games may only be played in a room set aside
10for those activities at the licensed premises of the eligible
11organization.

12(9) Not more than five gaming tables may be made
13available for the play of card games by the eligible
14organization.

15(10) No card games may be played between the hours of 1
16a.m. and 1 p.m.

17(11) No eligible organization or any other person shall
18collect, obtain or charge any percentage of or shall collect
19or obtain any portion of any wager or winnings of any player
20in a card game, except a player may collect his winnings.

21(12) No eligible organization or any other person shall
22collect, or obtain any money from or charge or impose any fee
23upon, any person that either enables the person to play or
24results in or from the person playing a card game, except
25that this paragraph shall not preclude the collection of a
26membership fee by the eligible organization that is unrelated
27to participation in the play of a card game authorized under
28this chapter.

29(13) An eligible organization that allows the use of its
30premises for the play of card games by its members in

1accordance with this chapter shall submit a schedule of the
2proposed dates of such card games and any card game
3tournament to the licensing authority.

4(c) Required postings.--An eligible organization that
5permits the play of card games at its licensed premises shall
6prominently post the following in close proximity of card game
7tables in the room designated to play card games:

8(1) The wagering limits for each type of card game.

9(2) The rules of play.

10(3) Information on where a person can obtain help for
11problem gambling, including the telephone number for the
12Pennsylvania Compulsive Gambling Hotline.

13(d) Prohibitions.--

14(1) It shall be unlawful for an eligible organization
15to:

16(i) Obtain or collect any money or thing of value
17from the conduct of card games at its licensed premises.

18(ii) Knowingly permit a card game to be played in
19violation of this chapter.

20(iii) Fail to comply with the posting requirement in
21accordance with subsection (c).

22(iv) Engage in any act, practice or course of
23conduct that would constitute fraud or deceit upon any
24player in a card game.

25(v) Allow a person under 21 years of age to play a
26card game at its licensed premises.

27(vi) Knowingly allow any person to employ or attempt
28to employ any device, scheme or artifice to cheat or
29defraud any player in a card game.

30(vii) Advertise any card game in violation of

1section 704.

2(2) A licensed organization that violates paragraph (1)
3shall be subject to the penalties imposed under section
4702(d).

5(e) Applicability.--The requirements of sections 502 and 503
6shall not apply to social card games authorized under this
7chapter.

8Section 803. Card game tournaments.

9(a) Authorization.--Notwithstanding any other provision of
10law or regulation to the contrary, an eligible organization may
11conduct nonbanking card game tournaments. A card game tournament
12conducted by an eligible organization shall comply with all of
13the following:

14(1) Only nonbanking card games shall be played in a card
15game tournament.

16(2) Each card game shall be conducted in a fair and
17honest manner and shall not be operated on a build-up or
18pyramid basis.

19(3) Every player in a tournament shall be given the same
20chance of winning the tournament. Second-chance entries or
21multiple entries shall be prohibited.

22(4) The eligible organization shall conduct each
23tournament and shall not contract with or permit another
24person to conduct the tournament or any card game during the
25tournament.

26(5) Only the eligible organization may receive or have
27any fixed or contingent right to receive, directly or
28indirectly, any profit, remuneration or compensation from or
29related to a card game in a card game tournament, except any
30amount that a person may win as a player on the same basis as

1the other players.

2(6) The eligible organization shall not hold more than
3five card game tournaments annually.

4(7) The eligible organization shall not hold a card game
5tournament within seven calendar days of another tournament
6conducted by the eligible organization.

7(8) The eligible organization may hold only one card
8game tournament during any period of 24 consecutive hours,
9starting from the time the tournament begins.

10(9) At the conclusion of each tournament, the eligible
11organization conducting the tournament shall announce the
12name of the winning player and the amount of winnings.

13(10) The eligible organization shall limit the number of
14tables used in the tournament to not more than five with not
15more than ten players at each table.

16(11) A card game tournament shall only be held in a room
17at the licensed premises designated by the eligible
18organization for the conduct of card games.

19(12) Players in tournaments shall be limited to the
20members of the eligible organization.

21(13) Players shall be 21 years of age or older.

22(14) The card game tournament shall not provide any
23direct financial benefit to the eligible organization or any
24other person, except winning players in the tournament.

25(15) The value of all prizes awarded for each
26tournament, except for a Texas Hold'em tournament, shall not
27exceed $200.

28(16) For a tournament involving Texas Hold'em, all of
29the following shall apply:

30(i) The payment of an entry fee or other

1consideration for participating is prohibited.

2(ii) The value of all prizes awarded to an
3individual winner of a tournament or contest at a single
4table shall not exceed $200 each day.

5(17) The eligible organization shall ensure that
6reasonable accommodations are made for players with
7disabilities.

8(b) Required postings.--Notwithstanding subsection (a), the
9eligible organization shall prominently post the tournament
10rules on a sign in the tournament playing room at least 24 hours
11before the tournament begins. The sign shall be at least 30
12inches by 30 inches, and the rules shall be easily readable. The
13sign shall include all of the following:

14(1) In permanent letters three inches high, the words
15"Tournament Rules."

16(2) Card game or games to be played in the tournament
17and the rules of each card game.

18(3) The prize for each card game and tournament.

19(4) How winners will be determined.

20(5) Any other tournament rules.

21(c) Prizes.--Cash or merchandise prizes may be awarded for
22each card game tournament. All of the following shall apply:

23(1) The eligible organization shall distribute the
24prizes awarded on the day the prizes are won.

25(2) Donated or merchandise prizes shall not be
26repurchased by the eligible organization.

27(3) Only prizes that can be won shall be displayed in
28the room where the tournament will be held.

29Section 10. The provisions of 61 Pa. Code §§ 901.463(4)
30(relating to raffle records), 901.464(9) (relating to punchboard

1and pull-tab records), 901.464a(9) (relating to daily and weekly
2drawing records), 901.466(1) (relating to prize records) and
3901.733(f) (relating to control of prizes) are abrogated.

4Section 11. This act shall take effect immediately.