Trial Engrossment of Amendment A01695 to House Bill 0864 P.N. 0970, Regular Session 2017-2018

A01695

THE GENERAL ASSEMBLY OF PENNSYLVANIA

HOUSE BILL

No.

864

Session of

2017

INTRODUCED BY MUSTIO, D. COSTA, DeLUCA, ORTITAY, SANKEY, WARD,

MILLARD, DEASY AND DOWLING, MARCH 16, 2017

REFERRED TO COMMITTEE ON GAMING OVERSIGHT, MARCH 16, 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 preliminary

provisions, further providing for legislative intent and for

definitions; in games of chance, further providing for major

league sports drawing and providing for airport 50/50

drawing; and, in enforcement, further providing for

enforcement.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

Section 1. Section 102 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 102. Legislative intent.

The General Assembly hereby declares that the playing of

games of chance for the purpose of raising funds, by certain

nonprofit associations, for the promotion of charitable or civic

purposes, is in the public interest. In some cases, the proceeds

from games of chance may be utilized to support certain

operating expenses of certain organizations.

The General Assembly hereby declares that raising public

funds from games of chance in licensed restaurants and

protecting the competitiveness of these restaurants is also in

the public interest.

The General Assembly hereby declares that raising funds from

a 50/50 drawing conducted in airport systems, the net proceeds

of which will be used for charitable purposes, is in the public

interest.

It is hereby declared to be the policy of the General

Assembly that all phases of licensing, operation and regulation

of games of chance be strictly controlled, and that all laws and

regulations with respect thereto as well as all gambling laws

should be strictly construed and rigidly enforced.

The General Assembly recognizes the possibility of

association between commercial gambling and organized crime, and

wishes to prevent participation by organized crime and prevent

the diversion of funds from the purposes herein authorized.

Section 2. Section 103 of the act is amended by adding

definitions to read:

Section 2. The definitions of "affiliated nonprofit

organization," "major league sports drawing" and "major league

sports team" in section 103 of the act are amended and the

section is amended by adding definitions to read:

Section 103. Definitions.

The following words and phrases when used in this act shall,

except as provided under section 902, have the meanings given to

them in this section unless the context clearly indicates

otherwise:

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* * *

"Affiliated nonprofit organization." An organization

established by or affiliated with [a Major League Baseball,

National Hockey League, National Basketball Association or Major

League Soccer team] an athletic team for the purpose of raising

funds for charity, which is qualified for an exemption under

section 501(c)(3) of the Internal Revenue Code of 1986 (Public

Law 99-514, 26 U.S.C. § 101(c)(3)).

"Airport." A publicly owned commercial service airport that

is designated by the Federal Government as an international

airport.

"Airport 50/50 drawing." A 50/50 drawing that is conducted

by an airport in accordance with section 304.2.

"Athletic event drawing." A 50/50 drawing that is conducted

by an affiliated nonprofit organization in accordance with

section 304.1.

"Athletic team." A sports team or racing facility that is

any of the following:

(1) A member of Major League Baseball, the National

Hockey League, the National Basketball Association, the

National Football League or Major League Soccer.

(2) A professional sports team affiliated with a team

under paragraph (1).

(3) Any other professional sports team that has a sports

facility or an agreement with a sports facility to conduct

home games at the facility.

(4) A stadium, grandstand or bleacher at a closed-course

motor facility where spectators directly observe motor races

with NASCAR, Indy, stock or drag racing cars.

(5) A collegiate team that competes on behalf of an

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institution of higher education.

* * *

"Institution of higher education." Any of the following:

(1) A community college operating under Article XIX-A of

the act of March 10, 1949 (P.L.30, No.14), known as the

Public School Code of 1949.

(2) A university within the State System of Higher

Education.

(3) The Pennsylvania State University.

(4) The University of Pittsburgh.

(5) Temple University.

(6) Lincoln University.

(7) Any other institution that is designated as "State

related" by the Commonwealth.

(8) Any accredited private or independent college or

university.

* * *

["Major league sports drawing." A 50/50 drawing conducted by

a nonprofit affiliate of a major league sports team in

accordance with section 304.1.

"Major league sports team." A sports team or racing facility

that is any of the following:

(1) A member of Major League Baseball, the National

Hockey League, the National Basketball Association, the

National Football League or Major League Soccer.

(2) A professional sports team affiliated with a team

under paragraph (1).

(3) Any other professional sports team that has a sports

facility or an agreement with a sports facility to conduct

home games at the facility.

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(4) A stadium, grandstand or bleacher at a closed-course

motor facility where spectators are directly observing motor

races with NASCAR, Indy, stock or drag racing cars.]

* * *

Section 3. Section 304.1 of the act is amended to read:

Section 304.1. [Major league sports] Athletic event drawing.

(a) General rule.--A person may purchase one or more [major

league sports] athletic event 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. Purchase of athletic event drawing

tickets may be made by cash, credit card or debit card.

(b) Frequency.--An affiliated nonprofit organization may

conduct no more than one [major league sports] athletic event

drawing per home game.

(b.1) Sales restricted.--Tickets for [a major league sports]

an athletic event drawing may not be sold in any seating area

designated as a family section.

(b.2) Charitable event.--[A major league sports] An athletic

event 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] athletic

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, except as provided for in

subsection (b.3), not at ancillary areas or facilities,

including parking areas, restaurants and bars or areas outside

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the arena, stadium, grandstand or bleachers or areas where the

sport is shown on remote electronic equipment.

(b.3) Outside sales.--Notwithstanding subsection (b.2),

athletic event drawing tickets may be sold prior to a home game

or car race in an officially designated parking area adjacent to

the arena, stadium, grandstand or bleachers or similar facility

where the home game or car race is being conducted and which is

not separated by a highway or street, unless the highway or

street is adjacent to the arena, stadium, grandstand, bleachers

or similar facility.

sports] an athletic event drawing shall be 50% of the total

amount collected from the sale of [major league sports] athletic

event 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] athletic event drawing tickets shall be

donated within seven days from the date of the drawing by the

affiliated nonprofit organization conducting the [major league

sports] athletic event drawing to one or more designated

charitable organizations for which the drawing was conducted.

(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]

athletic event drawing tickets [at a professional

sporting event].

(ii) For administrative expenses directly related to

the conduct of the athletic event drawing under this

section.

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(2) Authorized expenses under paragraph (1)(ii) may not

exceed 2% of the total amount collected from the sale of

[major league sports] athletic event drawing tickets.

(d) Designated charitable organization.--The affiliated

nonprofit organization conducting the [major league sports]

athletic event drawing shall disclose to all ticket purchasers

the designated charitable organization for which the [major

league sports] athletic event drawing is being conducted.

(e) Eligibility.--In order to receive proceeds from [a major

league sports] an athletic event 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. § 501(c)(3)).

A political subdivision shall not qualify as a charitable

organization under this section.

(f) Unclaimed prizes.--Any [major league sports] athletic

event drawing prize remaining unclaimed by a winner at the end

of the [major league sports] athletic 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] athletic event

drawing was conducted.

(g) Applicability.--The limitations under sections 302,

303(b), 308 and 704 shall not apply to [a major league sports]

an athletic event drawing.

(h) Additional recordkeeping.--The department may require

additional recordkeeping or accountability measures for [major

league sports] athletic event drawings.

Section 3 4. The act is amended by adding a section to read:

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Section 304.2. Airport 50/50 drawing.

(a) General rule.--A person may purchase one or more airport

50/50 drawing tickets, and each ticket 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

airport. Purchase of airport 50/50 drawing tickets may be made

by cash, credit card or debit card.

(b) Frequency and location.--An airport 50/50 drawing may be

conducted at an airport no more than one time per calendar day.

Drawings may only be held within the spaces of an airport

terminal to which the general public, including ticketed

passengers, regularly has access.

drawing shall be 50% of the total amount collected from the sale

of airport 50/50 drawing tickets. The other 50% of the total

amount collected from the sale of airport 50/50 drawing tickets

shall be donated within seven days from the date of the drawing

by the airport to the designated charitable organization for

which the drawing was conducted.

(d) Designated charitable organization.--The identity of the

designated charitable organization for which the airport 50/50

drawing is being conducted shall be disclosed to all ticket

purchasers.

(e) Eligibility.--In order to receive proceeds from an

airport 50/50 drawing, a charitable organization must be in

existence and fulfill its purposes prior to the airport 50/50

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. § 501(c)(3)). A political subdivision shall not qualify

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as a charitable organization under this act, but an organization

formed by a political subdivision that is eligible for exemption

under section 501(c)(3) of the Internal Revenue Code of 1986

shall qualify as a charitable organization under this act.

(f) Unclaimed prizes.--Any airport 50/50 drawing prize

remaining unclaimed by a winner 180 days after the drawing shall

be donated to the designated charitable organization for which

the airport 50/50 drawing was conducted.

(g) Applicability.--The limitations under sections 302,

303(b), 308 and 704 shall not apply to an airport 50/50 drawing.

(h) Additional recordkeeping.--The department may require

additional recordkeeping or accountability measures for airport

50/50 drawings.

Section 4 5. Section 702(g) of the act is amended to read:

Section 702. Enforcement.

* * *

(g) [General rule] Violations of Liquor Code.--

(1) Except as provided in paragraph (2), a violation of

this act by a club licensee shall not constitute a violation

of the Liquor Code.

(2) If a club licensee has committed three or more

violations of this act, the Bureau of Liquor Control

Enforcement may enforce a violation of this act as a

violation of the Liquor Code.

(3) A violation of this act shall not constitute a

violation of the Liquor Code for the purposes of section

471(c) of the Liquor Code.

(4) A violation of section 304.1 or 304.2 shall not

constitute a violation of the Liquor Code.

Section 5 6. Within two years of the effective date of this

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section, the Department of Revenue shall publish regulations to

implement and administer the provisions of this act.

Section 6 7. This act shall take effect in 60 days.

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