PRIOR PRINTER'S NOS. 1336, 1720, 1793,
PRINTER'S NO. 2639
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
AMENDMENTS TO SENATE AMENDMENTS, HOUSE OF REPRESENTATIVES, NOVEMBER 12, 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 games of chance permitted, for distributor
10licenses, for major league sports drawing, for club licensee,
11for distribution of proceeds, for records and for raffle
12tickets; providing for background checks; further providing
13for enforcement; providing for tavern gaming and for a host<-
14municipality tavern games tax; establishing the Host
15Municipality Tavern Games Local Share Account; providing for
16a <-transfer report of the Legislative Budget and Finance
17Committee; and making an editorial change.
1Section 102. Legislative intent.
2The General Assembly hereby declares that the playing of
3games of chance for the purpose of raising funds, by certain
4nonprofit associations, for the promotion of charitable or civic
5purposes, is in the public interest. In some cases, the proceeds
6from games of chance may be utilized to support certain
7operating expenses of certain organizations.
8The General Assembly hereby declares that raising public
9funds from games of chance in taverns <-licensed restaurants and
10protecting the competitiveness of these restaurants is also in
11the public interest.
12It is hereby declared to be the policy of the General
13Assembly that all phases of licensing, operation and regulation
14of games of chance be strictly controlled, and that all laws and
15regulations with respect thereto as well as all gambling laws
16should be strictly construed and rigidly enforced.
17The General Assembly recognizes the possibility of
18association between commercial gambling and organized crime, and
19wishes to [discourage commercialization of games of chance,<-]
20prevent participation by organized crime and prevent the
21diversion of funds from the purposes herein authorized.
22Section 1.1. The introductory paragraph and the definitions
23of <-"games of chance," "major league sports drawing," "major
24league sport team" and "proceeds" in section 103 of the act,
25amended or added February 2, 2012 (P.L.7, No.2) and October 24,
262012 (P.L.1462, No.184), are amended <-and the section is amended
27by adding a definition to read:
28Section 103. Definitions.
<-3* * *
4"Games of chance." Punchboards, daily drawings, weekly
5drawings, 50/50 drawings, raffles, tavern games and pull-tabs,
6as defined in this act, provided that no such game shall be
7played by or with the assistance of any mechanical or electrical
8devices or media other than a dispensing machine or passive
9selection device and further provided that the particular chance
10taken by any person in any such game shall not be made
11contingent upon any other occurrence or the winning of any other
12contest, but shall be determined solely at the discretion of the
13purchaser. This definition shall not be construed to authorize
14any other form of gambling currently prohibited under [any
15provision of Title] 18 [of the Pennsylvania Consolidated
16Statutes] Pa.C.S. (relating to crimes and offenses) or
17authorized under 4 Pa.C.S. (relating to amusements). Nothing in
18this act shall be construed to authorize games commonly known as
19"slot machines" or "video poker."
20* * *
21"Major league sports drawing." [A 50/50 drawing conducted by
22an affiliated nonprofit organization at a home game of a major
23league sports team in which 50% of the money collected from
24ticket sales from the drawing are offered as the prize and the
25remaining 50% is retained by the affiliated nonprofit
26organization sponsoring the drawing for distribution to
27charitable organizations.] A 50/50 drawing conducted by a
28nonprofit affiliate of a major league sports team in accordance
29with section 304.1.
30"Major league sports team." [A professional team that is a
15* * *
16"Proceeds." The difference between:
23* * *
26* * *
29Section 301. Games of chance permitted.
30Every eligible organization to which a license has been
1issued under the provisions of this chapter may conduct games of
2chance for the purpose of raising funds for public interest
3purposes. Except as provided in Chapter 5, all proceeds of a
4licensed eligible organization shall be used exclusively for
5public interest purposes, for the purchase of games of chance[,]
6or for the payment of the license fee [or for the payment of the
7fee for background checks], as required by this act.
10Section 304. Distributor licenses.
11(a) License required.--No person shall sell, offer for sale
12or furnish games of chance to eligible organizations licensed
13under this chapter or licensed under chapter 9 unless such
14person shall have obtained a distributor license as provided in
16* * *
20Section 304.1. Major league sports drawing.
21* * *
22(b.2) Charitable event.--A major league sports drawing may
23be conducted by the affiliated nonprofit organization during a
24charitable event held within the same arena, stadium,
25grandstand, bleachers or other facility during a home game or
26car race of the major league sports team. Drawings may only be
27held within spectator areas within the arena, stadium,
28grandstand or bleachers where the home game or car race is being
29conducted and not at ancillary areas or facilities, including
30parking areas, restaurants and bars or areas outside the arena,
3(c) Distribution.--The prize amount of a major league sports
4drawing shall be 50% of the total amount collected from the sale
5of major league sports drawing tickets. [The] Except as set
6forth in subsection (c.1), the other 50% of the total amount
7collected from the sale of major league sports drawing tickets
8shall be donated within seven days from the date of the drawing
9by the affiliated nonprofit organization conducting the major
10league sports drawing to [a] one or more designated charitable
11[organization] organizations for which the drawing was
13(c.1) Use of funds.--
24* * *
25(f) Unclaimed prizes.--Any major league [baseball] sports
26drawing prize remaining unclaimed by a winner at the end of the
27major league sports team's season shall be donated within 30
28days from the end of the season by the affiliated nonprofit
29organization to the designated charitable organization for which
30the major league sports drawing was conducted.
1* * *
8Section 501. Club licensee.
10(1) Beginning in  2014, a club licensee with
11proceeds in excess of <-$30,000 <-$20,000 in a calendar year
12shall submit [semiannual] annual reports to the department
13for the preceding [six-month] 12-month period on a form and
14in a manner prescribed by the department.
<-30[(v) An itemized list of expenditures made or
7* * *
8Section 502. Distribution of proceeds.
11(1) No less than [70%] 60% of the proceeds shall be paid
<-12[to organizations] for public interest purposes [in the
13calendar year in which] within one year of the end of the
14calendar year in which the proceeds were obtained.
19(i) Real property taxes.
20(ii) Utility and fuel costs.
23(iv) Water and sewer costs.
24(v) Property or liability insurance costs.
25(vi) Mortgage payments.
28(viii) New facility construction costs.
<-5(a.1) Amounts retained.--Amounts retained by a club licensee
6(a.1) Amounts retained.--
7(1) Notwithstanding subsection (a), if in a calendar
8year beginning January 1, 2013, the proceeds from a game of
9chance for a club licensee are $40,000 or less, the licensee
10shall be eligible to retain the first $20,000 in proceeds in
11the following calendar year before subsection (a) applies.
12(2) Amounts retained by a club licensee under subsection
13(a)(2) shall be expended within [the same calendar year] one
14year of the end of the calendar year in which the proceeds
15were obtained unless the club licensee notifies the
16department that funds are being retained for a substantial
17public interest purchase or project. [Notification shall
18include a description of the purchase or project, the cost
19and the anticipated date of the purchase or project.]
<-20* * *
28Section 503. Records.
1purchased. Records necessary to [conduct an audit under section
2702(b)] enforce this act or to conduct random audits shall be
3made available to the Bureau of Liquor Control Enforcement, the
4department or any other entity authorized to enforce or conduct
5audits under this act.
8[Section 504. Raffle tickets.
9A club licensee shall maintain records relating to the
10printing or purchase of raffle tickets. Records shall include a
11receipt or invoice from the place of purchase that shows the
12cost and number or amount of tickets purchased.]
16Section 702. Enforcement.
17* * *
18(b) Bureau of Liquor Control Enforcement.--If the licensee
19is a club licensee or a licensee under Chapter 9, the Bureau of
20Liquor Control Enforcement may enforce the provisions of this
21act in accordance with subsection (g). An administrative law
22judge under section 212 of the act of April 12, 1951 (P.L.90,
23No.21), known as the Liquor Code, may impose the penalties under
24subsection (d) following the issuance of a citation by the
29* * *
30Section 5. The act is amended by adding a chapter to read:
3Section 901. Scope of chapter.
4This chapter relates to tavern gaming.
5Section 902. Definitions.
9"Applicant." The person applying for a license under this
10chapter. The term includes each owner and officer of the
11restaurant licenses tavern where tavern games will be conducted
<-12or of the license to conduct tavern games. and of the holder of
13the liquor, malt or brewed beverage license under the act of
14April 12, 1951 (P.L.90, No.21), known as the Liquor Code.
15"Board." The Pennsylvania Liquor Control Board.
18"Grocery store." <-An established place which:
21(2) has an area under one roof of at least 10,000 square
22feet. <-A retail establishment, commonly known as a grocery
23store, supermarket or delicatessen, where food, food products
24and supplies are sold for human consumption on or off the
25premises. The term shall include a restaurant with an
26interior connection to, and the separate and segregated
27portion of, any other retail establishment which is dedicated
28solely to the sale of food, food products and supplies for
29the table for human consumption on or off the premises.
30"Host municipality." A municipality with one or more taverns
1licensed to conduct tavern games.
6"Net revenue." As follows:
18"Restaurant licensee." A for-profit hotel, restaurant,
19privately owned public golf course, brew pub or micro brewery
20licensed to sell liquor under <-the act of April 12, 1951 (P.L.90,
21No.21), known as the Liquor Code. The term does not include any
22of the following:
23(1) A grocery store.
<-26"Tavern." A for-profit hotel, restaurant, privately owned
27public golf course or brew pub or micro brewery with a valid
28license to sell liquor, malt or brewed beverages under the
29Liquor Code. The term does not include any of the following:
30(1) A grocery store.
8"Tavern daily drawing." A game in which:
13(2) a winner may be determined with the aid of a passive
14selection device or reference to drawings conducted by the
15department under the act of August 26, 1971 (P.L.351, No.91),
16known as the State Lottery Law;
26Section 903. Licenses.
27(a) Application.--A restaurant licensee may apply to the
28board for a license to conduct tavern games at a licensed
29premises <-in accordance with this chapter. <-located in a
30municipality that has adopted a referendum to allow small games
1of chance under section 703.
<-12(3) The details of any license issued under 4 Pa.C.S.
13Pt. II (relating to gaming), the act of April 12, 1951
14(P.L.90, No.21), known as the Liquor Code, or this act which
15was applied for or in which the applicant or other owner has
26(ii) The specific offense charged.
<-7(7) (9) Any other information required by the board.
14(e) Background investigation.--Each applicant<-, including
15each owner and officer of the restaurant, restaurant licensee
16and proposed tavern gaming license, shall include information
17and documentation as required to establish personal and
18financial suitability, honesty and integrity. Information shall
20(1) Criminal history record information.
21(2) Financial background information.
<-22(3) Data investigation by the bureau.
25(5) <-(4) Other information required by the bureau.
26(f) Personal interview.--If the bureau determines that the
27results of the background report investigation warrant
28additional review of the individual, the bureau shall conduct a
29personal interview with the applicant and may request
30information and interviews from other personal or professional
2(g) Cooperation.--The applicant shall cooperate with the
3bureau as requested during the conduct of the background
4investigation. Any refusal to provide the information required
5under this section or to consent to a background investigation
6shall result in the immediate denial of a license by the board.
7(h) Costs.--The applicant shall reimburse the bureau for the
8actual costs of conducting the background investigation. The
9board shall not approve an applicant that has not fully
10reimbursed the bureau for the investigation.
11(i) Approval.--The bureau shall transmit the investigative
12report and may make a recommendation to the board. The board
13shall review the information obtained under this section to
14determine if the applicant possesses the following:
15(1) Financial stability, integrity and responsibility.
6Section 904. Application.
11(c) Costs.--In addition to the fee under subsection (b), an
12applicant and any owner and officer of the applicant shall pay
13for the actual costs of a background investigation conducted by
14the bureau that exceed the application fee. The bureau may:
22Section 905. Approval.
23(a) Issuance.--Upon being satisfied that the requirements of
24section 903 have been met, the board may approve the application
25and issue a tavern games license for a period of one year. The
26board may <-place conditions on the license as it deems
27appropriate. <-enter into an agreement with the licensee
28concerning additional restrictions on the license, and this
29agreement shall be binding on the licensee. Failure of the
30licensee to adhere to the agreement will be cause for penalties
3(b) Renewal.--A license shall be renewed annually. A license
4renewal shall not require review of the bureau, unless requested
5by the board. <-The board may refuse to renew a tavern gaming
6license for the following reasons:
24(d) Entitlement.--Nothing under this chapter shall be
25construed to create an entitlement to a license by a person. The
26board shall have sole discretion to issue, renew, condition,
27suspend, revoke or deny a license based on the requirements of
28this chapter and whether the issuance and maintenance of the
29license are in the best interests of the Commonwealth.
30(e) Nontransferability.--A license shall be a grant of
1privilege to conduct tavern games. A license may not be sold,
2transferred or assigned to any other person. A licensee may not
3pledge or otherwise grant a security interest in or lien on the
4license. The board shall have the sole discretion to issue,
5renew, condition or deny the issuance of a license.
6Section 906. Change in ownership.
10(b) Qualification.--The purchaser or transferee of the
11assets or premises of a licensee must independently qualify for
12a license, pay the license fee and undergo and pay fees and
13costs for a background investigation under section 903.
14Section 907. Prize limits.
15(a) Individual prize limit.--The maximum prize which may be
16awarded for any single chance shall be $2,000. No tavern game
17sold, offered for sale or furnished may contain, permit, depict
18or designate a prize having a prize limit in excess of $2,000.
22Section 908. Bank account.
23A licensee shall maintain a bank account to hold the net
24revenue from tavern games which shall be separate from all other
25funds belonging to the licensee. Account records shall show all
26expenditures and income and shall be retained by the licensee
27for at least two years.
28Section 908.1. Tavern raffle.
29The following shall apply to a tavern raffle:
30(1) No more than one tavern raffle may be held in a
11(i) Sixty percent shall be paid to the Commonwealth.
17(6) A tavern raffle prize remaining unclaimed by a
18winner 60 days after the tavern raffle was held shall be
19donated by the licensee within 30 days to the designated
20charitable organization for which the tavern raffle was
22Section 909. Distribution of proceeds <-net revenue.
<-30(3) Five percent shall be paid to the Commonwealth and
3Section 909.1. Tavern games tax.
7(b) Collection.--The tax imposed under subsection (a) must
8be collected by the licensed distributor from the licensee in an
9instance where the tavern game is required to be purchased from
10a licensed distributor under this act and must be paid over to
12(c) Other games.--In an instance where the tavern game is
13not required to be purchased from a licensed distributor under
14this act, a tax of 60% is imposed upon the net revenue from
<-15tavern daily drawings and tavern raffles under section 908.1 and
16must be paid to the Commonwealth by the licensee.
17(d) Requirement to collect and remit.--Failure of a seller
18of tavern games to obtain a distributor's license does not
19relieve the seller from the requirement of collecting and
20remitting the tax imposed under this section.
21(e) Returns.--A licensee or licensed distributor subject to
22this article shall file with the department, upon a form
23prescribed by the department, a tavern games tax return. The
24return must be filed under oath or affirmation of an authorized
25officer of the licensee or licensed distributor reporting the
26net revenue and the tax due under this section in the prior
27calendar quarter for licensees and in the prior calendar month
28for licensed distributors. A return is due by the 20th day
29following the end of the reporting period. The return must set
30forth the following:
1(1) In the case of a licensed distributor, the total
2amount of net revenue for the tavern games sold to licensees
3in the prior calendar month, which must be calculated by
4indicating the number of each type of tavern game sold and
5the net revenue for each type of game.
10(3) Calculation of the tax due under this section.
13(5) Other information required by the department.
<-19(g) (h) Penalties and interest.--If a licensee or licensed
20distributor fails to file the return required under subsection
21(e) or fails to pay the tax imposed under subsection (a) or (c),
22the department may do the following:
23(1) assess the amount of tax due;
24(2) impose and assess an administrative penalty equal to
2510% of the tax due but unpaid for each quarter or fraction
26thereof that the tax remains unpaid together with interest at
27the rate established under section 806 of the act of April 9,
281929 (P.L.343, No.176), known as The Fiscal Code, on the tax
29from the time the tax became due. The penalty provided in
30this paragraph must be added to the tax and assessed and
1collected at the same time and in the same manner as a part
2of the tax. Unless otherwise specified, the tax must be
3assessed, collected and enforced by the department under the
4provisions of Article II of the act of March 4, 1971 (P.L.6,
5No.2), known as the Tax Reform Code of 1971;
10(4) revoke a licensed distributor's license.
<-17Section 909.2. Host municipality tavern games tax.
21(b) Collection.--The tax imposed under subsection (a) must
22be collected by the licensed distributor from the licensee in an
23instance where the tavern game is required to be purchased from
24a licensed distributor under this act and must be paid to the
25Commonwealth and deposited into the restricted receipts account
26established in section 909.3.
27(c) Other games.--In an instance where the tavern game is
28not required to be purchased from a licensed distributor under
29this act, a tax of 5% is imposed upon the net revenue from
30tavern daily drawings and tavern raffles under section 908.1 and
3(d) Requirement to collect and remit.--Failure of a seller
4of tavern games to obtain a distributor's license does not
5relieve the seller from the requirement of collecting and
6remitting the tax imposed under this section.
7(e) Returns.--A licensee or licensed distributor subject to
8this chapter shall file with the department, upon a form
9prescribed by the department, a host municipality tavern games
10tax return. The return must be filed under oath or affirmation
11of an authorized officer of the licensee or licensed distributor
12reporting the net revenue and the tax due under this section in
13the prior calendar quarter for licensees and in the prior
14calendar month for licensed distributors. A return is due by the
1520th day following the end of the reporting period. The return
16must set forth the following:
17(1) In the case of a licensed distributor, the total
18amount of net revenue for the tavern games sold to licensees
19in each host municipality in the prior calendar month, which
20must be calculated by indicating the number of each type of
21tavern game sold, the net revenue for each type of game and
22the host municipality of each licensee.
27(3) Calculation of the tax due under this section.
30(5) Other information required by the department.
4(g) Penalties and interest.--If a licensee or licensed
5distributor fails to file the return required under subsection
6(e) or fails to pay the tax imposed under subsection (a) or (c),
7the department may do the following:
8(1) assess the amount of tax due;
9(2) impose and assess an administrative penalty equal to
1010% of the tax due but unpaid for each quarter or fraction
11thereof that the tax remains unpaid together with interest at
12the rate established under section 806 of the act of April 9,
131929 (P.L.343, No.176), known as The Fiscal Code, on the tax
14from the time the tax became due. The penalty provided in
15this paragraph must be added to the tax and assessed and
16collected at the same time and in the same manner as a part
17of the tax. Unless otherwise specified, the tax must be
18assessed, collected and enforced by the department under the
19provisions of Article II of the act of March 4, 1971 (P.L.6,
20No.2), known as the Tax Reform Code of 1971;
24(4) revoke a licensed distributor's license.
1established in section 909.3.
2Section 909.3. Restricted Receipts Account.
6(b) Distributions.--The department shall make distributions
7from the Host Municipality Tavern Games Local Share Account to
8each host municipality. Each host municipality shall receive a
9distribution equal to the revenue remitted into the Host
10Municipality Tavern Games Local Share Account by:
11(1) licensees located within the host municipality; and
17Section 910. Regulation.
21Section 911. Invoice.
22A sale of a tavern game by a licensed distributor to a
23licensee must be documented by an invoice listing the names and
24types of games sold, quantities of each game sold, the net
25revenue of each game and the aggregate amount of tax due on the
26net revenue on each invoice. Failure to provide a correct
27invoice shall result in a penalty of 50% of the tax amount due
28payable to the Commonwealth.
29Section 912. Reports.
30A licensee shall submit an annual report to the board and the
12(4) Amount of tax remitted to the department.
15(6) Other information as required by the department.
16Section 913. Enforcement.
27(2) Up to $3,000 for a second <-or subsequent violation.
<-28(3) Up to $5,000 for a third violation.
1subsequent offense shall be a misdemeanor of the second degree.
2(d) <-(e) Administrative law judge.--An administrative law
3judge under section 212 of the act of April 12, 1951 (P.L.90,
4No.21), known as the Liquor Code, may impose the penalties under
5this section following the issuance of a citation by the Bureau
6of Liquor Control Enforcement.
<-7(e) Revocation or failure to renew.--In addition to any
8other sanctions the board may impose under this chapter or under
9the Liquor Code, the board may, at its discretion suspend,
10revoke or deny renewal of any license issued under this chapter
11if it receives any information from any source that the
12applicant or any of its officers, directors, owners or employees
13is in violation of any provision of this chapter, that the
14applicant has furnished the board with false or misleading
15information or that the information contained in the applicant's
16initial application or any renewal application is no longer true
17and correct. In the event of a revocation or failure to renew,
18the applicant's authorization to conduct the previously approved
19activity shall immediately cease, and all fees paid in
20connection therewith shall be deemed to be forfeited. In the
21event of a suspension, the applicant's authorization to conduct
22the previously approved activity shall immediately cease until
23the board has notified the applicant that the suspension is no
24longer in effect.
<-25(f) Suspension, revocation or failure to renew.--
26(1) In addition to any other sanctions the board may
27impose under this chapter or under the Liquor Code, the board
28may, at its discretion suspend, revoke or deny renewal of any
29license issued under this chapter if it receives any
30information from any source and determines that:
10(2) In the event of a revocation, suspension or failure
11to renew, the applicant's authorization to conduct the
12previously approved activity shall immediately cease, and all
13fees paid in connection therewith shall be deemed to be
14forfeited. in the event of a suspension, the applicant's
15authorization to conduct the previously approved activity
16shall immediately cease until the board has notified the
17applicant that the suspension is no longer in effect.
18Section 914. Prohibitions.
1(4) The board shall be prohibited from issuing a license
2to any person who has been convicted of a felony offense or
3misdemeanor gambling offense in any jurisdiction unless 15
4years have elapsed from the date of conviction of the
11(7) It shall be unlawful for an <-owner, officer or
12employee of a licensee to sell, operate or otherwise
13participate in the conduct of tavern games if the employee
14has been convicted in any jurisdiction of a felony or a
15misdemeanor gambling offense unless 15 years have elapsed
16from the date of conviction of the offense.
<-17(8) It shall be unlawful for an owner or officer of a
18licensee or for an employee of the licensee who operates the
19tavern game to participate in the game. This paragraph shall
20not apply to a raffle.
21Section 915. Applicability.
30Section 6. The act is amended by adding a section to read:
<-1Section 3101. State Lottery Fund.
2The department shall submit an annual report on the State
3Lottery Fund and the impact of small games of chance on the
4State Lottery Fund, if any, to the chairman and minority
5chairman of the Appropriations Committee of the Senate and the
6chairman and minority chairman of the Appropriations Committee
7of the House of Representatives.
10No later than March 15, 2016, and each March 15 thereafter,
11the Legislative Budget and Finance Committee shall issue a
12report to the General Assembly analyzing the impact, if any, of
13Chapter 9 on the State Lottery. The Governor may submit a
14request to the General Assembly to authorize a transfer of funds
15from the General Fund to the State Lottery Fund up to the amount
16identified in the report for the fiscal year following the date
17of the report.
20Section  3110. Effective date.
21This act shall take effect in 60 days.
22Section 8. This act shall take effect as follows:
25(i) This section.