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House of Representatives
Session of 2019 - 2020 Regular Session

MEMORANDUM

Posted:	April 20, 2020 09:01 AM
From:	Representative Kate A. Klunk and Rep. Frank A. Farry, Rep. Johnathan D. Hershey
To:	All House members
Subject:	Small Games of Chance Funds During an Emergency Disaster

The current business shut down from COVID-19 has not only affected our small business community, but also many of our service organizations that use Small Games of Chance to raise funds for charitable purposes. These organizations are the backbone of our communities, providing a place for our veterans to congregate, supporting many local charities, and funding many local community projects. Currently, many clubs are closed due to the governor’s business closure order.  They are not able to make money for charities from Small Games of Chance and their employees are not working and are not getting paid. Currently, under the Small Games of Chance Act, the proceeds from the games are split 60 percent to charitable purposes and 40 percent remains with the clubs.  Our legislation will change this for times of an emergency disaster, such as COVID-19 when the clubs are forced to close and are losing general operating revenue and Small Games of Chance proceeds.  During an emergency disaster, a club would be able to use the 60 percent of Small Games of Chance money to cover general operating expenses of the club, including rent, payroll, and utilities. With this change, we will give our clubs a financial lifeline to help them stay afloat during an emergency disaster.  We need to ensure these clubs can eventually reopen their doors, pay their employees, and get back to fundraising for our local charities and projects that our communities will desperately need as our state recovers. We must do all we can to keep these vital organizations alive in our communities so they can continue to serve our veterans and local charities now and into the future. Please join us in cosponsoring this important legislation for our service organizations.

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