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PRINTER'S NO. 366
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No.
354
Session of
2017
INTRODUCED BY DAY, D. COSTA, ROTHMAN, READSHAW, PYLE AND KORTZ,
FEBRUARY 6, 2017
REFERRED TO COMMITTEE ON GAMING OVERSIGHT, FEBRUARY 6, 2017
AN ACT
Amending the act of December 19, 1988 (P.L.1262, No.156),
entitled, as amended, "An act providing for the licensing of
eligible organizations to conduct games of chance, for the
licensing of persons to distribute games of chance, for the
registration of manufacturers of games of chance, and for
suspensions and revocations of licenses and permits;
requiring records; providing for local referendum by
electorate; and prescribing penalties," in games of chance,
further providing for major league sports drawing.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Section 304.1 of the act of December 19, 1988
(P.L.1262, No.156), known as the Local Option Small Games of
Chance Act, is amended to read:
Section 304.1. Major league sports drawing.
(a) General rule.--A person may purchase one or more major
league sports drawing tickets at a home game, and each ticket
purchased shall represent one entry in the drawing for a winner.
A single ticket shall be randomly chosen as the winner after a
certain number of tickets are sold or a specified time period
expires as designated by the affiliated nonprofit organization.
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(b) Frequency.--An affiliated nonprofit organization may
conduct no more than one major league sports drawing per home
game.
(b.1) Sales restricted.--Tickets for a major league sports
drawing may not be sold in any seating area designated as a
family section.
(b.2) Charitable event.--A major league sports drawing may
be conducted by the affiliated nonprofit organization during a
charitable event held within the same arena, stadium,
grandstand, bleachers or other facility during a home game or
car race of the major league sports team. Drawings may only be
held within spectator areas within the arena, stadium,
grandstand or bleachers where the home game or car race is being
conducted and not at ancillary areas or facilities, including
parking areas, restaurants and bars or areas outside the arena,
stadium, grandstand or bleachers or areas where the sport is
shown on remote electronic equipment.
(c) Distribution.--The prize amount of a major league sports
drawing shall be 50% of the total amount collected from the sale
of major league sports drawing tickets. Except as set forth in
subsection (c.1), the other 50% of the total amount collected
from the sale of major league sports drawing tickets during the
calendar year shall be donated [within seven days from the date
of the drawing] by the affiliated nonprofit organization
conducting the major league sports drawing [to one or more
designated charitable organizations for which the drawing was
conducted.] by February 1 of the proceeding calendar year and in
the following manner:
(1) Except as provided for in paragraph (2), 25% to one
or more charitable organizations of the affiliated nonprofit
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organization's choice and 25% distributed equally to each
volunteer fire company and volunteer ambulance association
located within or providing services to the county in which
the affiliated nonprofit organization conducts major league
sports drawings.
(2) If the affiliated nonprofit organization conducts
major league sports drawings in a county of the first or
second class, 25% to one or more charitable organizations of
the affiliated nonprofit organization's choice and 25%
distributed equally to:
(i) each volunteer fire company and volunteer
ambulance association located within or providing
services to the county of the first or second class; and
(ii) the general fund of the county of the first or
second class to be used for fire and ambulance services.
(c.1) Use of funds.--
(1) The affiliated nonprofit organization may utilize
nonprize money collected for the following:
(i) To employ or provide payment to individuals 18
years of age or older to sell major league sports drawing
tickets at a professional sporting event.
(ii) For administrative expenses directly related to
the conduct of the drawing under this section.
(2) Authorized expenses under paragraph (1)(ii) may not
exceed 2% of the total amount collected from the sale of
major league sports drawing tickets.
(d) Designated charitable organization.--The affiliated
nonprofit organization conducting the major league sports
drawing shall disclose to all ticket purchasers the designated
charitable [organization] organizations for which the major
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league sports drawing is being conducted.
(e) Eligibility.--In order to receive proceeds from a major
league sports drawing, a charitable organization must be in
existence and fulfilling its purposes for at least two years
prior to the drawing and shall be eligible for exemption under
section 501(c)(3) of the Internal Revenue Code of 1986 (Public
Law 99-514, 26 U.S.C. ยง 501(c)(3)). [A] Except for a county of
the first or second class, a political subdivision shall not
qualify as a charitable organization under this section.
(f) Unclaimed prizes.--Any major league sports drawing prize
remaining unclaimed by a winner at the end of the major league
sports team's season shall be donated within 30 days from the
end of the season by the affiliated nonprofit organization to
the designated charitable organization for which the major
league sports drawing was conducted.
(g) Applicability.--The limitations under sections 302,
303(b), 308 and 704 shall not apply to a major league sports
drawing.
(h) Additional recordkeeping.--The department may require
additional recordkeeping or accountability measures for major
league sports drawings. B eginning in 2018, the department shall
require an affiliated nonprofit organization that conducts major
league sports drawings to submit to the department, on a form
and in a manner prescribed by the department, an annual report
by April 1 for the preceding calendar year. The report shall be
filed under oath or affirmation of an authorized officer of the
affiliated nonprofit organization and shall include all of the
following information:
(1) The proceeds received by the affiliated nonprofit
organization, itemized by home game.
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(2) The amount of prizes paid from all major league
sports drawings, itemized by home game.
(3) Any information or documentation required by the
department to ensure compliance with subsection (c).
(4) Other information or documentation required by the
department.
Section 2. This act shall take effect in 60 days.
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