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A01870
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No.
864
Session of
2017
INTRODUCED BY MUSTIO, D. COSTA, DeLUCA, ORTITAY, SANKEY, WARD,
MILLARD, DEASY, MATZIE AND KORTZ, MARCH 16, 2017
AS AMENDED ON SECOND CONSIDERATION, HOUSE OF REPRESENTATIVES,
JUNE 12, 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 prize
limits, providing for airport 50/50 drawing AND FURTHER
PROVIDING FOR LICENSING OF ELIGIBLE ORGANIZATIONS; IN CLUB
LICENSEES, FURTHER PROVIDING FOR CLUB LICENSEE AND FOR
DISTRIBUTION OF PROCEEDS; 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
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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 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:
* * *
"Airport." A publicly owned commercial service airport that
is designated by the Federal Government as an international
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airport.
"Airport 50/50 drawing." A 50/50 drawing that is conducted
by an airport in accordance with section 304.2.
* * *
Section 3. Section 302 of the act is amended to read:
Section 302. Prize limits.
(a) Individual prize limit.--
(1) Except as provided under subsections (d) and (d.1),
the maximum prize which may be awarded for any single chance
shall be $2,000[.], other than a weekly drawing.
(2) The maximum prize which may be awarded for any
weekly drawing shall be $14,000.
[(b) Aggregate prize limit.--No more than $35,000 in prizes
shall be awarded from games of chance by a licensed eligible
organization in any seven-day period.]
(c) Raffle prize limit.--Up to $15,000 in prizes may be
awarded in raffles in any calendar month.
[(c.1) Total limit.--All prizes awarded under this section
shall be subject to the aggregate prize limits under subsection
(b).]
(d) Exception for raffles.--Notwithstanding subsection [(b)
or] (c), a licensed eligible organization may conduct a raffle
under section 308 and award a prize or prizes valued in excess
of $3,000 each only under the following conditions:
(1) The licensing authority has issued a special permit
for the raffle under section 308.
(2) A licensed eligible organization shall be eligible
to receive no more than ten special permits in any licensed
term except that a volunteer fire, ambulance, rescue or
conservation organization that is not a club licensee shall
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be eligible to receive 12 special permits in any licensed
term.
(3) Only one raffle may be conducted under each special
permit issued under section 308.
(4) Except as provided under subsection (d.1), the total
of all prizes awarded under this subsection shall be no more
than $150,000 per calendar year, which shall not be subject
to the aggregate limit under subsection [(b) or] (c).
(d.1) Additional award.--A volunteer fire, ambulance, rescue
or conservation organization may, in addition to the total under
subsection (d)(4), award up to $100,000 from raffles which shall
not be subject to the aggregate limit under subsection [(b),]
(c) or (d).
(f) Daily drawing carryover.--The prize limitation contained
in [subsections] subsection (a) [and (b)] may be exceeded by a
daily drawing under the following circumstances: a daily drawing
may award a prize in excess of $2,000 if such prize is the
result of a carryover of a drawing which resulted from the
winning number in such drawing not being among the eligible
entrants in such drawings. Nothing contained herein shall
authorize the prize limitation as contained in [subsections]
subsection (a) [and (b)] to be exceeded as a result of a failure
to conduct a drawing on an operating day during which chances
were sold for a daily drawing or for a daily drawing for which
chances were sold in excess of $1 or for which more than one
chance was sold to an eligible participant.
[(g) Additional exception.--When a daily drawing or weekly
drawing is set up or conducted in such a manner as to pay out or
award 100% of the gross revenues generated from such drawing,
the limitation contained in subsection (b) shall not apply.]
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(h) Weekly drawing carryover exception.--Weekly drawings
shall be governed by the prize limitation contained in
subsection [(b)] (a). The prize limitation contained in
subsection [(b)] (a) may be exceeded by a weekly drawing under
the following circumstances: a weekly drawing may award a prize
where the cash value is in excess of [$35,000] $14,000 if such
prize is the result of a carryover of a drawing or drawings
which resulted from the winning number or numbers in such
drawing or drawings not being among the eligible entrants in
such drawings. Nothing contained in this chapter shall authorize
the prize limitation under subsection [(b)] (a) to be exceeded
as a result of a failure to conduct a drawing for a week during
which chances were sold for a weekly drawing or for a weekly
drawing for which chances were sold in excess of $1.
(i) Concurrent operation.--Nothing under this act shall
prohibit the concurrent operation of daily or weekly drawings.
Section 3 4. The act is amended by adding a section to read:
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.
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(c) Distribution.--The prize amount of an airport 50/50
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. ยง 501(c)(3)). A political subdivision shall not qualify
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.
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Section 4. Section 702(g) of the act is amended to read:
SECTION 4 5. SECTIONS 307(D.1), 501(A)(1), 502(A.1)(1) AND
702(G) OF THE ACT ARE AMENDED TO READ:
SECTION 307. LICENSING OF ELIGIBLE ORGANIZATIONS.
* * *
(D.1) BANK ACCOUNT AND RECORDS.--AN ELIGIBLE ORGANIZATION
WITH PROCEEDS OF GAMES OF CHANCE THAT EXCEED [$40,000] $60,000
PER YEAR SHALL MAINTAIN A BANK ACCOUNT, WHICH SHALL BE SEPARATE
FROM ALL OTHER FUNDS BELONGING TO THE LICENSED ELIGIBLE
ORGANIZATION. ACCOUNT RECORDS SHALL SHOW ALL EXPENDITURES AND
INCOME AND SHALL BE RETAINED BY THE LICENSED ELIGIBLE
ORGANIZATION FOR AT LEAST TWO YEARS.
* * *
SECTION 501. CLUB LICENSEE.
(A) REPORT.--
(1) BEGINNING IN 2014, A CLUB LICENSEE WITH PROCEEDS IN
EXCESS OF [$20,000] $30,000 IN A CALENDAR YEAR SHALL SUBMIT
ANNUAL REPORTS TO THE DEPARTMENT FOR THE PRECEDING 12-MONTH
PERIOD ON A FORM AND IN A MANNER PRESCRIBED BY THE
DEPARTMENT.
* * *
SECTION 502. DISTRIBUTION OF PROCEEDS.
* * *
(A.1) AMOUNTS RETAINED.--
(1) NOTWITHSTANDING SUBSECTION (A), IF IN A CALENDAR
YEAR BEGINNING JANUARY 1, 2013, THE PROCEEDS FROM A GAME OF
CHANCE FOR A CLUB LICENSEE ARE [$40,000] $60,000 OR LESS, THE
LICENSEE SHALL BE ELIGIBLE TO RETAIN THE FIRST [$20,000]
$30,000 IN PROCEEDS IN THE FOLLOWING CALENDAR YEAR BEFORE
SUBSECTION (A) APPLIES.
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* * *
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
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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