PRIOR PRINTER'S NOS. 1336, 1720, 1793
PRINTER'S NO. 2101
THE GENERAL ASSEMBLY OF PENNSYLVANIA
INTRODUCED BY PAYNE, TURZAI, CALTAGIRONE, COHEN, HARHAI, KOTIK, MILLARD, MOUL, PASHINSKI, READSHAW, TOOHIL, WHITE, D. COSTA, DEASY, BARBIN, ROZZI, STEPHENS, EVERETT AND FARRY, APRIL 3, 2013
SENATOR WARD, COMMUNITY, ECONOMIC AND RECREATIONAL DEVELOPMENT, IN SENATE, AS AMENDED, JUNE 19, 2013
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," further providing for
<-9definitions, for major league sports drawing and for
10licensing of eligible organizations to conduct games of
11chance <-definition applicability, for the definitions of
12"major league sports drawing" and "major league sports team,"
13for distributor licenses, for major league sports drawing,
14for club licensee, for distribution of proceeds, for records
15and for raffle tickets; providing for background checks;
16further providing for enforcement; providing for tavern
17gaming and for a transfer; and making an editorial change.
<-20Section 1. The definitions of "affiliated nonprofit
21organization," "major league sports drawing" and "major league
22sports team" in section 103 of act of December 19, 1988
23(P.L.1262, No.156), known as the Local Option Small Games of
4Section 103. Definitions.
8* * *
9"Affiliated nonprofit organization." An organization
10established by or affiliated with a Major League Baseball,
11National Football League, National Hockey League, National
12Basketball Association or Major League Soccer team, or its
13affiliate, for the purpose of raising funds for charity, which
14is qualified for an exemption under section 501(c)(3) of the
15Internal Revenue Code of 1986 (Public Law 99-514, 26 U.S.C. §
17* * *
18"Home game." A game of a major league sports team or its
19affiliate, including, but not limited to, a league-sponsored
20game, exhibition, regular season game, All-Star game, play-off
21game, and championship game, held at the home facility of the
22major league sports team or its affiliate.
23["Major league sports drawing." A 50/50 drawing conducted by
24an affiliated nonprofit organization at a home game of a major
25league sports team in which 50% of the money collected from
26ticket sales from the drawing are offered as the prize and the
27remaining 50% is retained by the affiliated nonprofit
28organization sponsoring the drawing for distribution to
30"Major league sports team." A professional team that is a
4* * *
5"Professional sports drawing." A 50/50 drawing conducted by
6an affiliated nonprofit organization at a home game in which 50%
7of the money collected from ticket sales from the drawing is
8offered as the prize and the remaining 50% is retained by the
9affiliated nonprofit organization sponsoring the drawing for
10distribution to charitable organizations.
11* * *
14Section 304.1. [Major league] Professional sports drawing.
15(a) General rule.--A person may purchase one or more [major
16league] professional sports drawing tickets at a home game, and
17each ticket purchased shall represent one entry in the drawing
18for a winner. A single ticket shall be randomly chosen as the
19winner after a certain number of tickets are sold or a specified
20time period expires as designated by the affiliated nonprofit
1drawing tickets. The other 50% of the total amount collected
2from the sale of [major league] professional sports drawing
3tickets shall be donated within seven days from the date of the
4drawing by the affiliated nonprofit organization conducting the
5[major league] professional sports drawing to a designated
6charitable organization for which the drawing was conducted.
7(d) Designated charitable organization.--The affiliated
8nonprofit organization conducting the [major league]
9professional sports drawing shall disclose to all ticket
10purchasers the designated charitable organization for which the
11[major league] professional sports drawing is being conducted.
12(e) Eligibility.--In order to receive proceeds from a [major
13league] professional sports drawing, a charitable organization
14must be in existence and fulfilling its purposes for at least
15two years prior to the drawing and shall be eligible for
16exemption under section 501(c)(3) of the Internal Revenue Code
17of 1986 (Public Law 99-514, 26 U.S.C. § 501(c)(3)). A political
18subdivision shall not qualify as a charitable organization under
20(f) Unclaimed prizes.--Any [major league baseball]
21professional sports drawing prize remaining unclaimed by a
22winner at the end of the major league sports team's, or its
23affiliate's, season shall be donated within 30 days from the end
24of the season by the affiliated nonprofit organization to the
25designated charitable organization for which the [major league]
26professional sports drawing was conducted.
30Section 3. Section 307(b.1)(5) of the act, amended October
124, 2012 (P.L.1462, No.184), is amended to read:
4* * *
5(b.1) Location of games of chance.--
6* * *
7(5) For purposes of [major league] professional sports
8drawings, the facility at which a major league sports team,
9or its affiliate, conducts its games shall constitute a
10premises for purposes of this act.
11* * *
12Section 4. This act shall take effect in 60 days.
<-13Section 1. The introductory paragraph and the definitions of
14"major league sports drawing" and "major league sports team" in
15section 103 of the act of December 19, 1988 (P.L.1262, No.156),
16known as the Local Option Small Games of Chance Act, amended
17October 24, 2012 (P.L.1462, No.184), are amended to read:
18Section 103. Definitions.
19The following words and phrases when used in this act shall,
20except as provided under section 901, have the meanings given to
21them in this section unless the context clearly indicates
23* * *
24"Major league sports drawing." [A 50/50 drawing conducted by
25an affiliated nonprofit organization at a home game of a major
26league sports team in which 50% of the money collected from
27ticket sales from the drawing are offered as the prize and the
28remaining 50% is retained by the affiliated nonprofit
29organization sponsoring the drawing for distribution to
30charitable organizations.] A 50/50 drawing conducted by a
3"Major league sports team." [A professional team that is a
4member of Major League Baseball, the National Hockey League, the
5National Basketball Association or Major League Soccer.] A
6sports team that is any of the following:
15* * *
18Section 304. Distributor licenses.
19(a) License required.--No person shall sell, offer for sale
20or furnish games of chance to eligible organizations licensed
21under this chapter or a licensee under chapter 9 unless such
22person shall have obtained a distributor license as provided in
24* * *
28Section 304.1. Major league sports drawing.
29* * *
30(c) Distribution.--The prize amount of a major league sports
1drawing shall be 50% of the total amount collected from the sale
2of major league sports drawing tickets. The other 50% of the
3total amount collected from the sale of major league sports
4drawing tickets shall be donated within seven days from the date
5of the drawing by the affiliated nonprofit organization
6conducting the major league sports drawing to [a] one or more
7designated charitable [organization] organizations for which the
8drawing was conducted.
9(c.1) Use of funds.--
20* * *
21(f) Unclaimed prizes.--Any major league [baseball] sports
22drawing prize remaining unclaimed by a winner at the end of the
23major league sports team's season shall be donated within 30
24days from the end of the season by the affiliated nonprofit
25organization to the designated charitable organization for which
26the major league sports drawing was conducted.
27* * *
3Section 501. Club licensee.
5(1) [Beginning in 2013, a club licensee shall submit
6semiannual reports to the department for the preceding six-
7month period on a form and in a manner prescribed by the
8department.] Beginning January 1, 2014, and each January 1
9thereafter, a club licensee that has proceeds in excess of
10$30,000 in a calendar year shall submit an annual report to
11the department for the preceding year on a form and in a
12manner prescribed by the department.
13(1.1) The report under paragraph (1) shall include:
17(ii) Amounts expended for public interest purposes.
1502(a)(1), itemized by the recipient.
8* * *
9Section 502. Distribution of proceeds.
20(i) Real property taxes.
21(ii) Utility and fuel costs.
24(iv) Water and sewer costs.
25(v) Property or liability insurance costs.
26(vi) Mortgage payments.
29(viii) New facility construction costs.
30(ix) Entertainment equipment, including television,
1video and electronic games.
6(a.1) Amounts retained.--Amounts retained by a club licensee
7under subsection (a)(2) shall be expended within [the same
8calendar year] one year from the time the proceeds were obtained
9unless the club licensee notifies the department that funds are
10being retained for a substantial public interest purchase or
11project. [Notification shall include a description of the
12purchase or project, the cost and the anticipated date of the
13purchase or project.]
14* * *
15Section 503. Records.
16A club licensee shall maintain records as required by this
17act or by the department, including invoices for games of chance
18purchased. Records necessary to conduct an audit under section
19702(b) shall be made available to the [Bureau of Liquor Control
20Enforcement] department or other entity authorized to enforce
24[Section 504. Raffle tickets.
25A club licensee shall maintain records relating to the
26printing or purchase of raffle tickets. Records shall include a
27receipt or invoice from the place of purchase that shows the
28cost and number or amount of tickets purchased.]
29Section 4. The act is amended by adding a section to read:
30Section 505.1. Background checks.
1Each application for a club license under this act submitted
2by an eligible organization which has proceeds in excess of
3$30,000 in a year shall include the results of a criminal
4history record information check obtained from the Pennsylvania
5State Police, as defined in 18 Pa.C.S. § 9102 (relating to
6definitions) and permitted by 18 Pa.C.S. § 9121(b) (relating to
7general regulations), for the executive officer and secretary of
8the eligible organization making the application for a club
9license or any other person required by the department.
12Section 702. Enforcement.
13* * *
17* * *
18Section 6. The act is amended by adding a chapter to read:
21Section 901. Scope of chapter.
22This chapter relates to tavern gaming.
23Section 902. Definitions.
27"Board." The Pennsylvania Liquor Control Board.
30"License." A license to conduct tavern games under this
4"Pull-tab." A single folded or banded ticket or a strip
5ticket or card with a face covered to conceal one or more
6numbers or symbols, where one or more of each set of tickets or
7cards has been designated in advance as a winner.
8"Restaurant licensee." A for-profit hotel, restaurant,
9privately owned public golf course, brew pub or micro brewery
10eating place licensed to sell liquor under the act of April 12,
111951 (P.L.90, No.21), known as the Liquor Code.
17Section 903. Licenses.
24(1) The name, address and photograph.
25(2) A photograph of the applicant.
30(5) The details of any gaming, slot machine or any
5(7) The following relating to criminal information:
12(B) The specific offense charged.
17(ii) No applicant shall be required to provide
18documentation relating to a summary offense. Failure of
19the board or the bureau to recover a record of a summary
20offense may not be grounds for denying an application.
21(8) Any other information required by the department.
25(d) Background investigation.--Every applicant and owner of
26a proposed license shall include information and documentation
27as required to establish the applicant's and each owner's
28suitability, honesty and integrity. Information shall include:
29(1) Criminal history record information.
30(2) Financial background information.
1(3) Data investigation by the bureau.
4(5) Other information required by the bureau.
5(e) Personal interview.--If the bureau determines that a
6criminal history record warrants additional review of the
7individual, the bureau shall conduct a personal interview with
8the applicant and may request information from personal or
16(h) Approval.--The bureau shall make a recommendation to the
17board. The board shall review the information obtained and the
18recommendation under this section to determine if the applicant
19and other owners of the license possess the following:
20(1) Financial stability, integrity and responsibility.
26Section 904. Application.
1conducted by the bureau. The bureau may:
6Section 905. Approval.
7(a) Issuance.--Upon being satisfied that the requirements of
8section 903 have been met, the board may approve the application
9and issue an initial license for a period of one year. The board
10may place conditions on the license as it deems appropriate.
11(b) Renewal.--A license shall be renewed annually.
12(c) Fee.--The license fee and renewal fee shall be $1,000.
13(d) Entitlement.--Nothing under this chapter shall be
14construed to create an entitlement to a license by a person. The
15board shall have sole discretion to issue, renew, condition or
16deny a license based on the requirements of this chapter and
17whether the issuance is in the best interests of the
19(e) Nontransferability.--A license shall be a grant of
20privilege to conduct tavern games. A license may not be sold,
21transferred or assigned to any other person. A licensee may not
22pledge or otherwise grant a security interest in or lien on the
23license. The board shall have the sole discretion to issue,
24renew, condition or deny the issuance of a license.
25Section 906. Change in ownership.
4Section 907. Prize limits.
5(a) Individual prize limit.--The maximum prize which may be
6awarded for any single chance shall be $2,000. No tavern game
7sold, offered for sale or furnished may contain, permit, depict
8or designate a prize having a prize limit in excess of $2,000.
12Section 908. Bank account.
13A licensee shall maintain a bank account to hold the proceeds
14of tavern games which shall be separate from all other funds
15belonging to the licensee. Account records shall show all
16expenditures and income and shall be retained by the licensee
17for at least two years.
18Section 908.1. Tavern raffle.
19The following shall apply to a tavern raffle:
1(i) Sixty percent shall be paid to the Commonwealth.
2(ii) Forty percent may be retained by the licensee.
3Section 909. Distribution of proceeds.
10Section 910. Reports.
17(2) Amounts transferred to the General Fund.
18(3) Amounts given to designated charities.
19(4) Other information as required by the department.
23Section 911. Enforcement.
29(1) Up to $1,000 for an initial violation of this act.
30(2) Up to $3,000 for a second or subsequent violation.
3(d) Department of Revenue.--The Department of Revenue shall
4enforce the provisions of section 909 as a tax in accordance
5with the enforcement provisions under Article XXVII of the act
6of March 4, 1971 (P.L.6, No.2), known as the Tax Reform Code of
8Section 7. The act is amended by adding a section to read:
9Section 3101. Transfer from General Fund to State Lottery Fund.
10If, on June 15, 2015, and June 15 of each year thereafter,
11the department determines that a decrease in the revenue
12deposited in that fiscal year in the State Lottery Fund is due
13to the play of small games of chance in retail licensed
14establishments in this Commonwealth, the department shall
15certify the amount of the decrease due to the activity. The
16department's determination shall be based upon an audit or other
17report of an independent expert regarding the decrease.
20Section  3110. Effective date.
21This act shall take effect in 60 days.
22Section 9. This act shall take effect in 60 days.