PRINTER'S NO. 970
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, 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
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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
airport.
"Airport 50/50 drawing." A 50/50 drawing that is conducted
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by an airport in accordance with section 304.2.
* * *
Section 3. 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.
(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
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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.
Section 4. 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.
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(4) A violation of section 304.1 or 304.2 shall not
constitute a violation of the Liquor Code.
Section 5. 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. This act shall take effect in 60 days.
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