PRINTER'S NO. 681

THE GENERAL ASSEMBLY OF PENNSYLVANIA

HOUSE BILL

No.

622

Session of

2009

INTRODUCED BY PALLONE, BELFANTI, BEYER, BRENNAN, CALTAGIRONE,

CARROLL, CAUSER, CONKLIN, GIBBONS, GOODMAN, GROVE, HALUSKA,

HENNESSEY, HORNAMAN, KORTZ, KOTIK, KULA, MAHONEY, MELIO,

MICOZZIE, MILLARD, MOUL, MYERS, PETRARCA, READSHAW, ROAE,

SEIP, SIPTROTH, SOLOBAY, STABACK, J. TAYLOR, WALKO, WHITE,

YOUNGBLOOD AND HARKINS, FEBRUARY 26, 2009

REFERRED TO COMMITTEE ON GAMING OVERSIGHT, FEBRUARY 26, 2009

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," further providing for

legislative intent, for the definition of "license";

providing for poker tournaments; further providing for

licensing of eligible organizations to conduct games of

chance, for revocation of licenses, for local option, for

advertising, for certain persons prohibited from having an

interest in poker tournaments and for penalties; and making

editorial changes.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

Section 1. The title of the act of December 19, 1988 (P.L.

1262, No.156), known as the Local Option Small Games of Chance

Act, amended December 19, 1990 (P.L.812, No.195), is amended to

read:

AN ACT

Providing for the licensing of eligible organizations to conduct

games of chance and poker tournaments, 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.

Section 2. Sections 1 and 2 of the act are amended to read:

Section 1. Short title.

This act shall be known and may be cited as the Local Option

Small Games of Chance and Poker Tournament Act.

Section 2. Legislative intent.

The General Assembly hereby declares that the playing of

small games of chance and poker tournaments for the purpose of

raising funds, by certain nonprofit associations, for the

promotion of charitable or civic 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 small games of chance and poker tournaments 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 discourage commercialization of small games of chance

and poker tournaments, prevent participation by organized crime

and prevent the diversion of funds from the purposes herein

authorized.

Section 3. The definition of "license" in section 3 of the

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act, amended December 19, 1990 (P.L.812, No.195), is amended to

read:

Section 3. Definitions.

The following words and phrases when used in this act shall

have the meanings given to them in this section unless the

context clearly indicates otherwise:

* * *

"License." A license to conduct games of chance and poker

tournaments.

* * *

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

Section 4.1. Poker tournaments permitted.

(a) Conduct of tournaments.--Every eligible organization to

which a license has been issued under this act may conduct poker

tournaments for the purpose of raising funds for public interest

purposes. The eligible organization shall advertise the time and

place of the poker tournament at least one week in advance, and

all poker tournaments shall conclude on the same day as they

started. All proceeds of poker tournaments shall be used

exclusively for public interest purposes as permitted by this

act.

(b) Entry fee.--An eligible organization may charge a person

wishing to participate in a poker tournament an entry fee of no

more than $100.

may bet no more than $5 per bet.

(d) Raising.--The total raises per hand may not exceed five.

(e) Prizes.--Notwithstanding section 5, eligible

organizations shall pay out prizes to no more than the top five

winning persons in a declining share based on the person's final

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placement in the tournament. The prize pool shall be based on

the total of the entry fees collected.

(f) Costs and profit.--The eligible organization may keep up

to 25% of the entry fees collected.

(g) Definitions.--As used in this section, the following

words and phrases shall have the meanings given to them in this

subsection:

"Ante." A player's initial wager or predetermined

contribution to the pot prior to dealing of the first hand.

"Bet." To make a wager by putting chips into the pot.

"Hand." One game in a series, one deal in a card game or the

cards held by a player.

"Poker." Any game, regardless of the number of cards or how

it is dealt, which uses the standard poker "winning hand"

hierarchy, for example, five of a kind beats straight, flush

beats four of a kind, etc.

"Poker tournament." An event in which poker players compete

for all or part of a prize pool.

"Pot." The total amount anted and wagered by all players

during a hand.

"Prize pool." The prize pool shall consist of the entry fees

collected minus any amount kept by the eligible organization

under subsection (f).

"Raise." A wager made in an amount greater than the

immediately preceding wager.

Section 5. Section 10 of the act, amended December 19, 1990

(P.L.812, No.195) and October 18, 2000 (P.L.602, No.79), is

amended to read:

Section 10. Licensing of eligible organizations to conduct

games of chance and poker tournaments.

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(a) License required.--No eligible organization shall

conduct or operate any games of chance and poker tournaments

unless such eligible organization has obtained and maintains a

valid license issued pursuant to this section. Auxiliary groups

within eligible organizations shall be eligible to conduct small

games of chance and poker tournaments using the license issued

to the eligible organization provided that the auxiliary group

or groups are listed on the application and license of the

eligible organization. No additional licensing fee shall be

charged for an auxiliary group's eligibility under this act.

Auxiliary groups shall not include branches, lodges or chapters

of a Statewide organization.

(b) Issuance and fees.--The licensing authority shall

license, upon application, within 30 days any eligible

organization meeting the requirements for licensure contained in

this act to conduct and operate games of chance and poker

tournaments at such locations within the county or in such

manner as stated on the application as limited by subsection (b.

1). The license fee to be charged to each eligible organization

shall be $100, except for limited occasion licenses which shall

be $10. Licenses shall be renewable annually upon the

anniversary of the date of issue.

(b.1) Location of small games of chance.--Where there exists

a location or premises which is the normal business or operating

site of the eligible organization and is owned or leased by that

eligible organization to conduct its normal business, that site

shall be the licensed premises for small games of chance and

poker tournaments conducted by the eligible organization. If

that location consists of more than one building and the

eligible organization wishes to conduct its games and poker

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tournaments in a different building at that location from the

one that is listed on its application and license, the eligible

organization must notify, in writing, the district attorney and

the licensing authority of the change in building site and the

dates and times that will be affected. When an eligible

organization does not own or lease a specific location to

conduct its normal business, that eligible organization may use

another eligible organization's premises to conduct its games

and poker tournaments or may make such other arrangements that

are consistent with this act, including, but not limited to,

leasing a premise under a written agreement for a rental which

is not determined by either the amount of receipts realized from

the playing of games of chance and poker tournaments nor the

number of people attending except that an eligible organization

may lease a facility for a banquet where a per head charge is

applied in connection with the serving of a meal. When such

eligible organization changes the site of its games and poker

tournaments from that which is listed on its application and

license, the eligible organization must notify, in writing, the

district attorney and licensing authority of the change in their

games' and poker tournaments' site and dates and times that will

be affected.

(b.2) Off-premises games of chance and poker tournaments.--

Notwithstanding any other provisions of this section, an

eligible organization may conduct small games of chance and

poker tournaments at a location off its premises when such games

and poker tournaments are part of an annual carnival, fair,

picnic or banquet held or participated in by that eligible

organization on a historical basis. The eligible organization

must notify, in writing, the district attorney and licensing

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authority of the location, date and times of such events where

it will be conducting small games of chance and poker

tournaments.

(b.3) Limited occasion licenses.--Eligible organizations

which do not own their own premises or which do not lease a

specific location to conduct their normal business may apply for

a limited occasion license to conduct small games of chance and

poker tournaments on not more than three occasions covering a

total of seven days during a licensed year. A limited occasion

license entitles eligible organizations holding such a license

to conduct no more than two raffles during a licensed year where

prizes may not exceed the established limits for regular monthly

raffles. Holders of limited occasion licenses may not apply or

be granted any other license or special permit under this act.

No holder of a regular license or special permit under this act

shall apply or be granted a limited occasion license.

(b.4) Gambling facility prohibited.--It shall be unlawful

for a person, corporation, association, partnership or other

business entity to offer for rent or offer for use a building or

facility to be used exclusively for the conducting of small

games of chance and poker tournaments. It shall also be unlawful

for any eligible organization to lease under any terms a

facility or building which is used exclusively for the

conducting of small games of chance and poker tournaments.

be publicly displayed at the site of the small games of chance

and poker tournaments.

(d) Operation.--Each licensed eligible organization shall

comply with the following restrictions and rules governing the

operation of games of chance and poker tournaments:

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(1) No person under 18 years of age shall be permitted

to operate or play games of chance and poker tournaments.

(2) No eligible organization shall permit any person who

has been convicted of a felony in a Federal or State court

within the past five years or has been convicted in a Federal

or State court within the past ten years of a violation of

the act of July 10, 1981 (P.L.214, No.67), known as the Bingo

Law, or of this act to manage, set up, supervise or

participate in the operation of games of chance and poker

tournaments.

(3) No eligible organization shall pay any compensation

to any person for conducting any games of chance and poker

tournaments. Games of chance and poker tournaments may only

be conducted by managers, officers, directors, bar personnel

and bona fide members of the eligible organization.

(4) Games and poker tournaments shall be conducted only

on the licensed premises or as otherwise provided by this

act.

(5) The eligible organization shall not lease such

premises under either an oral or a written agreement for a

rental which is determined by either the amount of receipts

realized from the playing of games of chance and poker

tournaments or the number of people attending, except that an

eligible organization may lease a facility for a banquet

where a per head charge is applied in connection with the

serving of a meal. An eligible organization shall not lease

such premises from any person who has been convicted of a

violation of this act within the past ten years.

(6) Games, other than raffles, daily drawings and weekly

drawings, shall be purchased only from manufacturers and

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distributors approved by the department.

(7) No licensed eligible organization shall permit its

premises to be used for small games of chance and poker

tournaments by another licensed eligible organization at the

same time that it is conducting small games of chance and

poker tournaments on the premises. When a licensed eligible

organization is permitting another licensed eligible

organization to use its premises for purposes of small games

of chance and poker tournaments, it must cease the operation

of its own small games of chance and poker tournaments during

the period that the other licensed eligible organization is

conducting its games and poker tournaments on the premises.

(8) Raffle tickets may be sold off the licensed premise

in any municipality in this Commonwealth which has adopted

the provisions of this act by an affirmative vote in a

municipal referendum. A licensed eligible organization which

plans to sell raffle tickets in a municipality located in a

county other than the county in which the eligible

organization is licensed must notify that county's district

attorney and licensing authority as to the location and the

dates that the eligible organization plans to sell raffle

tickets.

(e) Application for license.--Each eligible organization

shall apply to the licensing authority for a license on a form

to be prescribed by the Secretary of Revenue. The form shall

contain an affidavit to be affirmed by the executive officer or

secretary of the eligible organization stating that:

(1) No person under 18 years of age will be permitted by

the eligible organization to operate or play games of chance

and poker tournaments.

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(2) The facility in which the games of chance and poker

tournaments are to be played has adequate means of ingress

and egress and adequate sanitary facilities available in the

area.

(3) The eligible organization is not leasing such

premises from the owner thereof under an oral agreement, nor

is it leasing such premises from the owner thereof under a

written agreement at a rental which is determined by the

amount of receipts realized from the playing of games of

chance and poker tournaments or by the number of people

attending, except that an eligible organization may lease a

facility for a banquet where a per head charge is applied in

connection with the serving of a meal.

(f) List of licensees.--The licensing authority, on a

semiannual basis, shall send a copy of all licensees to the

Department of Revenue.

(g) List of municipalities.--The licensing authority shall

include with any license or renewal issued to an eligible

organization, an up-to-date listing of those municipalities

within the licensing county which have approved the referendum

question on small games of chance and poker tournaments.

Section 6. Section 12 of the act, amended December 19, 1990

(P.L.812, No.195), is amended to read:

Section 12. Revocation of licenses.

(a) Grounds.--The licensing authority shall revoke or refuse

to renew the license of any eligible organization whenever the

district attorney finds upon complaint and investigation that:

(1) Any of the funds derived from the operation of games

of chance and poker tournaments are used for any purpose

other than for public interest purposes or for the purchase

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of games of chance as permitted by this act.

(2) Any person under 18 years of age is operating or

playing games of chance and poker tournaments as defined in

this act.

(3) The eligible organization has permitted any person

who has been convicted of a felony in a Federal or State

court within the past five years or has been convicted in a

Federal or State court within the past ten years of a

violation of the act of July 10, 1981 (P.L.214, No.67), known

as the Bingo Law, or of this act, to manage, set up,

supervise or participate in the operation of games of chance

and poker tournaments.

(4) The facility in which the games of chance and poker

tournaments are played does not have adequate means of

ingress and egress and does not have adequate sanitary

facilities available in the area.

(5) Any person or persons other than a manager, officer,

director, bar personnel or a bona fide member of an eligible

organization have been involved in managing, setting up,

operating or running games of chance and poker tournaments.

(6) Any person has received compensation for conducting

games of chance and poker tournaments.

(7) Any prize has been awarded in excess of the limits

permitted under this act.

(8) The eligible organization has violated any condition

of a special permit issued pursuant to section 11.

(9) The eligible organization conducts the games of

chance and poker tournaments under a lease which calls for:

(i) leasing such premises from the owner thereof

under an oral agreement; or

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(ii) leasing such premises from the owner thereof

under a written agreement at a rental which is determined

by the amount of receipts realized from the playing of

games of chance and poker tournaments.

(10) False or erroneous information was provided in the

original application.

(11) An eligible organization has been convicted of a

violation of this act as evidenced by a certified record of

the conviction.

(12) The eligible organization has permitted another

eligible organization to conduct small games of chance and

poker tournaments on its licensed premises without suspending

its own operation of small games of chance and poker

tournaments during the period that the other licensed

eligible organization is conducting its games and poker

tournaments on the premises.

(b) Production of records.--The district attorney may

require licensees to produce their books, accounts and records

relating to the conduct of games of chance and poker tournaments

in order to determine whether a license should be revoked or

renewal thereof denied. Licensees shall also be required to

produce their license, books, accounts and records relating to

the conduct of games of chance and poker tournaments to other

law enforcement officials upon proper request.

Section 7. Section 14(a) of the act is amended to read:

Section 14. Local option.

(a) Election to be held.--In any municipality, an election

may be held on the date of the primary election immediately

preceding any municipal election, but not more than once in four

years, to determine the will of the electors with respect to the

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issuance of licenses within the limits of such municipality

under the provisions of this act. Where an election shall have

been held at the primary election preceding a municipal election

in any year, another election may be held under the provisions

of this act at the primary election occurring the fourth year

after such prior election. Whenever electors equal to at least

25% of the highest vote cast for any office in the municipality

at the last preceding general election shall file a petition

with the county board of elections of the county, or the

governing body of the municipality adopts, by a majority vote, a

resolution to place such a question on the ballot and a copy of

the resolution is filed with the board of elections of the

county, for a referendum on the question of issuing licenses,

the county board of elections shall cause a question to be

placed on the ballot or on the voting machine board and

submitted at the primary election immediately preceding the

municipal election. The question shall be in the following form:

Do you favor the issuance of licenses

to conduct small games of chance and poker

tournaments in the of ?

* * *

Section 8. Section 15 of the act, amended December 19, 1990

(P.L.812, No.195), is amended to read:

Section 15. Advertising.

It shall be unlawful for any eligible organization or person

to advertise the prizes or their dollar value to be awarded in

games of chance and poker tournaments, provided that prizes may

be identified on raffle tickets. Notwithstanding the prohibition

of advertising contained within this section, an eligible

organization may advertise prizes and values thereof in periodic

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publications which are limited in their circulation to members

of the eligible organization.

Section 9. Section 16 of the act is amended to read:

Section 16. Certain persons prohibited.

No distributor nor any person who has been convicted of a

felony or of a violation of the act of July 10, 1981 (P.L.214,

No.67), known as the Bingo Law, or of this act or of any

comparable State or Federal law shall have a pecuniary interest

in the operation or proceeds of games of chance and poker

tournaments.

Section 10. Section 17 of the act, amended December 19, 1990

(P.L.812, No.195), is amended to read:

Section 17. Penalties.

(a) Eligible organizations.--Any eligible organization

violating the provisions of this act shall be guilty of a

summary offense and, upon conviction thereof, shall be sentenced

to pay a fine not exceeding $1,000 and shall for a first

offense, forfeit the license to conduct games of chance and

poker tournaments issued to the eligible organization for the

remainder of the licensing period or six months, whichever is

longer, for a second offense, forfeit the license issued to the

eligible organization for the remainder of the current licensing

period and be ineligible to be licensed for the following

licensing period, for a third or subsequent offense, forfeit the

license issued to the eligible organization and be ineligible

for a license renewal for 30 months thereafter.

(b) Individuals.--Any person who conducts or assists in the

conducting of games of chance and poker tournaments in violation

of the provisions of this act is guilty of a summary offense for

a first violation. A second violation of this act shall be

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punishable as a misdemeanor of the third degree. A third or

subsequent violation shall be punishable as a misdemeanor of the

first degree.

distributes games of chance without a license or in violation of

any provision of this act or applicable regulations, and any

manufacturer of games of chance who delivers games of chance for

sale or distribution in this Commonwealth who fails to obtain a

permit therefor is guilty of a misdemeanor of the first degree,

provided that no license or permit shall be required for the

manufacture or distribution of raffle tickets.

(d) Rigging.--A person commits a misdemeanor of the first

degree if, with intent to prevent a game of chance and poker

tournaments from being conducted in accordance with the

requirements of this act or the rules and usages governing the

game and poker tournaments, he:

(1) confers or offers or agrees to confer any benefit

upon or threatens any injury to a participant or other person

associated with the game and poker tournaments;

(2) tampers with any person or games and poker

tournaments; or

(3) solicits, accepts or agrees to accept any benefit.

(e) Contingent fees.--Any person who distributes,

manufactures or operates a small game of chance and poker

tournaments and who requires, for equipment furnished or to play

a game and poker tournaments, payment equal to a percentage of

the total winnings of any game and poker tournaments commits a

misdemeanor of the first degree.

Section 11. This act shall take effect in 60 days.