PRIOR PRINTER'S NO. 970

PRINTER'S NO. 1984

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,

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 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 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

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

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.

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.

* * *

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

(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.

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

as a charitable organization under this act, but an organization

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

(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 4. 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

* * *

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

SECTION 502. DISTRIBUTION OF PROCEEDS.

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.

* * *

Section 702. Enforcement.

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. 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.