H0169B1916A02322 AJM:SRA 06/27/07 #90 A02322
AMENDMENTS TO HOUSE BILL NO. 169
Sponsor: REPRESENTATIVE MARSICO
Printer's No. 1916
1 Amend Title, page 1, line 9, by striking out "and" and
2 inserting a comma
3 Amend Title, page 1, line 10, by removing the period after
4 "limits" and inserting
5 , for insured games, for limited sales, for recordkeeping, for
6 eligible organizations' use of locations for conducting small
7 games of chance, for separate individual prize limitations and
8 for advertising.
9 Amend Sec. 1 (Sec. 3), page 2, line 12, by inserting brackets
10 before and after "a"
11 Amend Sec. 1 (Sec. 3), page 2, line 13, by inserting brackets
12 before and after "during the same operating day"
13 Amend Bill, page 4, lines 8 through 30; page 5, lines 1
14 through 30; page 6, lines 1 through 24, by striking out all of
15 said lines on said pages and inserting
16 Section 3. Section 5 of the act, amended December 19, 1990
17 (P.L.812, No.195) and October 18, 2000 (P.L.602, No.79), is
18 amended to read:
19 Section 5. Prize limits.
20 (a) Individual prize limit.--[The] Except as provided for in
21 subsection (j), the maximum cash value which may be awarded for
22 any single chance shall be [$500] $1,000.
23 (b) Weekly limit.--No more than [$5,000] $20,000 in cash or
24 merchandise shall be awarded by any eligible organization in any
25 seven-day period. Payouts of less than $26 shall not be counted
26 toward the weekly limit.
27 (c) Limit on raffles.--No more than $5,000 in cash or
28 merchandise shall be awarded in raffles in any calendar month.
29 (d) Exception.--An eligible organization may conduct a
30 raffle and award a prize or prizes valued in excess of [$500]
31 $1,000 each only under the following conditions:
32 (1) The licensing authority has issued a special permit
1 for the raffle under section 11.
2 (2) Eligible organizations shall be eligible to receive
3 no more than two special permits in any licensed year except
4 that volunteer fire, ambulance and rescue organizations shall
5 be eligible to receive no more than three special permits in
6 any licensed year.
7 (3) Only one raffle may be conducted under each special
8 permit.
9 (4) The total cash value of all prizes shall be no more
10 than $100,000 per calendar year.
11 (e) Limit on daily drawings.--Daily drawings shall be
12 governed by the prize [limitations] limitation contained in
13 [subsections (a) and (b)] subsection (a). [An eligible
14 organization shall not conduct daily drawings during a period
15 when a weekly drawing is taking place.]
16 (f) Exception.--The prize limitation contained in
17 [subsections (a) and (b)] subsection (a) may be exceeded by a
18 daily drawing under the following circumstances: a daily drawing
19 may award a prize where the cash value is in excess of [$500]
20 $1,000 if such prize is the result of a carryover of a drawing
21 or drawings which resulted from the winning number in such
22 drawing or drawings not being among the eligible entrants in
23 such drawings. Nothing contained herein shall authorize the
24 prize [limitations] limitation as contained in [subsections (a)
25 and (b)] subsection (a) to be exceeded as a result of a failure
26 to conduct a drawing on an operating day during which chances
27 were sold for a daily drawing or for a daily drawing for which
28 chances were sold in excess of $1 or for which more than one
29 chance was sold to an eligible participant.
30 (g) Daily drawing and weekly drawing exception.--When a
31 daily drawing or weekly drawing is set up or conducted in such a
32 manner as to pay out or award 100% of the gross revenues
33 generated from such drawing, the limitations contained in
34 subsection (b) shall not apply.
35 (h) Limit on weekly drawings.--Weekly drawings shall be
36 governed by the prize limitations contained in subsection (b).
37 The prize limitation contained in subsection (b) may be exceeded
38 by a weekly drawing under the following circumstances: a weekly
39 drawing may award a prize where the cash value is in excess of
40 [$5,000] $20,000 if such prize is the result of a carryover of a
41 drawing or drawings which resulted from the winning number or
42 numbers in such drawing or drawings not being among the eligible
43 entrants in such drawings. Nothing contained in this act shall
44 authorize the prize limitations as contained in subsection (b)
45 to be exceeded as a result of a failure to conduct a drawing for
46 a week during which chances were sold for a weekly drawing or
47 for a weekly drawing for which chances were sold in excess of
48 $1. [An eligible organization shall not conduct weekly drawings
49 during a period when a daily drawing is taking place.]
50 (i) Limit on monthly drawings.--No more than $50,000 in cash
51 or merchandise may be awarded in any calendar month except under
52 the following circumstances: a monthly drawing may award a prize
53 where the cash value is in excess of $50,000 if the prize is the
54 result of a carryover of a drawing or drawings that resulted
55 from the winning number or numbers in the drawing or drawings
56 not being among the eligible entrants in the drawing. Nothing
57 contained in this act shall authorize the prize limitations to
58 be exceeded as a result of a failure to conduct a drawing for a
59 month during which chances were sold for a monthly drawing or
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1 for a monthly drawing for which chances were sold in excess of
2 $1.
3 (j) Progressive games.--Progressive games shall be permitted
4 with a maximum cash value of $5,000. Contributions to the pot
5 shall be counted against the limit for the week in which the
6 contribution is made except that when the limit is reached the
7 amount awarded shall be counted toward the limit only to the
8 extent it was not previously counted toward a prior week's
9 limit. For the purpose of this section, progressive games are
10 those in which a winning ticket awards the ticket holder an
11 additional chance at another game or games.
12 Section 4. The act is amended by adding a section to read:
13 Section 5.1. Insured games.
14 Notwithstanding any provision of this act to the contrary, an
15 eligible organization may conduct small games of chance using
16 insured games. Insured games sold by a licensed distributor
17 shall be backed by a valid insurance contract issued by an
18 insurance company licensed to do business in this Commonwealth.
19 Proof of the insurance contract must be provided to the
20 department prior to the game being sold. The license of a
21 distributor and an insurance company issuing a contract for an
22 insured game may be suspended or revoked for failure to pay an
23 award. For the purposes of this section, an insured game is a
24 game in which the distributor or other licensed third party
25 guarantees making the payment on a win of a jackpot.
26 Section 5. Sections 6 and 9(b) of the act, amended December
27 19, 1990 (P.L.812, No.195), are amended to read:
28 Section 6. Sales limited.
29 No person shall sell, offer for sale or furnish games of
30 chance for use within this Commonwealth except to an eligible
31 organization or distributor licensed under this act. No game of
32 chance, other than a raffle, sold, offered for sale or furnished
33 for use within this Commonwealth shall contain, permit, depict
34 or designate a prize having a cash value in excess of [$500]
35 $1,000.
36 Section 9. Regulations of department.
37 * * *
38 (b) Limitation on recordkeeping requirements.--This section
39 shall not be construed to authorize the department to promulgate
40 regulations providing for recordkeeping requirements for
41 eligible organizations which require unreasonable or unnecessary
42 information or a repetitious listing of information. The
43 department shall strive to keep such recordkeeping requirements
44 from being an undue hardship or burden on eligible
45 organizations. Under no circumstances shall the department
46 require the retention of records for a period in excess of two
47 years. Each eligible organization shall report to the department
48 prizes awarded as required by section 335 of the act of March 4,
49 1971 (P.L.6, No.2), known as the Tax Reform Code of 1971.
50 Section 6. Section 10 of the act, amended December 19, 1990
51 (P.L.812, No.195) and October 18, 2000 (P.L.602, No.79), is
52 amended to read:
53 Section 10. Licensing of eligible organizations to conduct
54 games of chance.
55 (a) License required.--No eligible organization shall
56 conduct or operate any games of chance unless such eligible
57 organization has obtained and maintains a valid license issued
58 pursuant to this section. Auxiliary groups within eligible
59 organizations shall be eligible to conduct small games of chance
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1 using the license issued to the eligible organization provided
2 that the auxiliary group or groups are listed on the application
3 and license of the eligible organization. No additional
4 licensing fee shall be charged for an auxiliary group's
5 eligibility under this act. Auxiliary groups shall not include
6 branches, lodges or chapters of a Statewide organization.
7 (b) Issuance and fees.--The licensing authority shall
8 license, upon application, within 30 days any eligible
9 organization meeting the requirements for licensure contained in
10 this act to conduct and operate games of chance at such
11 locations within the county or in such manner as stated on the
12 application as limited by subsection (b.1). The license fee to
13 be charged to each eligible organization shall be [$100] $300,
14 except for limited occasion licenses which shall be [$10] $30.
15 Licenses shall be renewable [annually] on a biennial basis upon
16 the anniversary of the date of issue.
17 (b.1) Location of small games of chance.--Where there exists
18 a location or premises which is the normal business or operating
19 site of the eligible organization and is owned or leased by that
20 eligible organization to conduct its normal business, that site
21 shall be the licensed premises for small games of chance
22 conducted by the eligible organization. If that location
23 consists of more than one building and the eligible organization
24 wishes to conduct its games in a different building at that
25 location from the one that is listed on its application and
26 license, the eligible organization must notify, in writing, the
27 district attorney and the licensing authority of the change in
28 building site and the dates and times that will be affected.
29 When an eligible organization does not own or lease a specific
30 location to conduct its normal business, that eligible
31 organization may use another eligible organization's premises to
32 conduct its games or may make such other arrangements that are
33 consistent with this act, including, but not limited to, leasing
34 a premise under a written agreement for a rental which is not
35 determined by either the amount of receipts realized from the
36 playing of games of chance nor the number of people attending
37 except that an eligible organization may lease a facility for a
38 banquet where a per head charge is applied in connection with
39 the serving of a meal. When such eligible organization changes
40 the site of its games from that which is listed on its
41 application and license, the eligible organization must notify,
42 in writing, the district attorney and licensing authority of the
43 change in their games' site and dates and times that will be
44 affected. More than one organization may use the same location,
45 provided that each organization has its own license and that the
46 prize limitations of this act shall apply separately to each
47 organization.
48 (b.2) Off-premises games of chance.--Notwithstanding any
49 other provisions of this section, an eligible organization may
50 conduct small games of chance at a location off its premises
51 when such games are part of an annual carnival, fair, picnic or
52 banquet held or participated in by that eligible organization on
53 a historical basis. The eligible organization must notify, in
54 writing, the district attorney and licensing authority of the
55 location, date and times of such events where it will be
56 conducting small games of chance.
57 (b.3) Limited occasion licenses.--Eligible organizations
58 which do not own their own premises or which do not lease a
59 specific location to conduct their normal business may apply for
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1 a limited occasion license to conduct small games of chance on
2 not more than three occasions covering a total of seven days
3 during a licensed year. A limited occasion license entitles
4 eligible organizations holding such a license to conduct no more
5 than two raffles during a licensed year where prizes may not
6 exceed the established limits for regular monthly raffles.
7 Holders of limited occasion licenses may not apply or be granted
8 any other license or special permit under this act. No holder of
9 a regular license or special permit under this act shall apply
10 or be granted a limited occasion license.
11 (b.4) Gambling facility prohibited.--It shall be unlawful
12 for a person, corporation, association, partnership or other
13 business entity to offer for rent or offer for use a building or
14 facility to be used exclusively for the conducting of small
15 games of chance. It shall also be unlawful for any eligible
16 organization to lease under any terms a facility or building
17 which is used exclusively for the conducting of small games of
18 chance.
19 (c) Display.--Licenses issued pursuant to this section shall
20 be publicly displayed at the site of the small games of chance.
21 (d) Operation.--Each licensed eligible organization shall
22 comply with the following restrictions and rules governing the
23 operation of games of chance:
24 (1) No person under 18 years of age shall be permitted
25 to operate or play games of chance.
26 (2) No eligible organization shall permit any person who
27 has been convicted of a felony in a Federal or State court
28 within the past five years or has been convicted in a Federal
29 or State court within the past ten years of a violation of
30 the act of July 10, 1981 (P.L.214, No.67), known as the Bingo
31 Law, or of this act to manage, set up, supervise or
32 participate in the operation of games of chance.
33 (3) No eligible organization shall pay any compensation
34 to any person for conducting any games of chance. Games of
35 chance may only be conducted by managers, officers,
36 directors, bar personnel and bona fide members of the
37 eligible organization.
38 (4) Games shall be conducted only on the licensed
39 premises or as otherwise provided by this act.
40 (5) The eligible organization shall not lease such
41 premises under either an oral or a written agreement for a
42 rental which is determined by either the amount of receipts
43 realized from the playing of games of chance or the number of
44 people attending, except that an eligible organization may
45 lease a facility for a banquet where a per head charge is
46 applied in connection with the serving of a meal. An eligible
47 organization shall not lease such premises from any person
48 who has been convicted of a violation of this act within the
49 past ten years.
50 (6) Games, other than raffles, daily drawings [and],
51 weekly drawings and monthly drawings, shall be purchased only
52 from manufacturers and distributors approved by the
53 department.
54 (7) No licensed eligible organization shall permit its
55 premises to be used for small games of chance by another
56 licensed eligible organization at the same time that it is
57 conducting small games of chance on the premises. When a
58 licensed eligible organization is permitting another licensed
59 eligible organization to use its premises for purposes of
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1 small games of chance, it must cease the operation of its own
2 small games of chance during the period that the other
3 licensed eligible organization is conducting its games on the
4 premises.
5 (8) Raffle tickets may be sold off the licensed premise
6 in any municipality in this Commonwealth which has adopted
7 the provisions of this act by an affirmative vote in a
8 municipal referendum. A licensed eligible organization which
9 plans to sell raffle tickets in a municipality located in a
10 county other than the county in which the eligible
11 organization is licensed must notify that county's district
12 attorney and licensing authority as to the location and the
13 dates that the eligible organization plans to sell raffle
14 tickets.
15 (e) Application for license.--Each eligible organization
16 shall apply to the licensing authority for a license on a form
17 to be prescribed by the Secretary of Revenue. The form shall
18 contain an affidavit to be affirmed by the executive officer or
19 secretary of the eligible organization stating that:
20 (1) No person under 18 years of age will be permitted by
21 the eligible organization to operate or play games of chance.
22 (2) The facility in which the games of chance are to be
23 played has adequate means of ingress and egress and adequate
24 sanitary facilities available in the area.
25 (3) The eligible organization is not leasing such
26 premises from the owner thereof under an oral agreement, nor
27 is it leasing such premises from the owner thereof under a
28 written agreement at a rental which is determined by the
29 amount of receipts realized from the playing of games of
30 chance or by the number of people attending, except that an
31 eligible organization may lease a facility for a banquet
32 where a per head charge is applied in connection with the
33 serving of a meal.
34 (e.1) Supplemental materials to accompany application.--The
35 following materials shall be submitted with the application
36 under subsection (e):
37 (1) An annual financial report limited to the operation
38 of games of chance detailing gross profit, allowable
39 expenses, rent, staff per diem, cost of supplies, net profit
40 and contributions to charitable causes shall be filed with
41 the licensing authority. This report shall be filed with the
42 application for license and shall be filed by the midterm
43 anniversary date of the license in nonapplication years. This
44 report shall be prepared on a one-page form to be designed by
45 the department. The report shall contain information for the
46 12-month period immediately preceding a date 60 days prior to
47 the filing of the report. Failure to file the report by the
48 midterm anniversary date of the license shall result in the
49 automatic suspension of the license until the county
50 treasurer certifies the report has been filed in compliance
51 with this act.
52 (2) A licensed eligible organization that conducts games
53 of chance 30 or more times in one calendar year must provide
54 evidence to the county treasurer that a bona fide member or
55 designee of the organization has completed four hours of
56 education in the corresponding license period. The education
57 program shall include seminars on law applicable to games of
58 chance and any other related topics the department may
59 require. An education program shall be provided by any
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1 nonprofit association approved by the department. This
2 paragraph shall not apply to organizations seeking or holding
3 limited occasion licenses.
4 (f) List of licensees.--The licensing authority, on a
5 semiannual basis, shall send a copy of all licensees to the
6 Department of Revenue.
7 (g) List of municipalities.--The licensing authority shall
8 include with any license or renewal issued to an eligible
9 organization, an up-to-date listing of those municipalities
10 within the licensing county which have approved the referendum
11 question on small games of chance.
12 (h) Background checks.--Each application shall include
13 criminal history records obtained from the Pennsylvania State
14 Police for the executive officer or secretary of the eligible
15 organization making the application and all other responsible
16 persons listed on the application.
17 Section 7. Section 15 of the act, amended December 19, 1990
18 (P.L.812, No.195), is amended to read:
19 Section 15. Advertising.
20 It shall not be unlawful for any eligible organization or
21 person to advertise the prizes or their dollar value to be
22 awarded in games of chance, provided that [prizes may be
23 identified on raffle tickets. Notwithstanding the prohibition of
24 advertising contained within this section, an eligible
25 organization may advertise prizes and values thereof in periodic
26 publications which are limited in their circulation to members
27 of the eligible organization.] such advertisements shall contain
28 the date, time, location, whether cash or merchandise prizes
29 will be awarded and the name of the eligible organization
30 licensed to conduct games of chance and the name of the person
31 who conducts the games of chance.
32 Section 8. The amendment or addition of section 10(b), (e.1)
33 and (h) of the act shall apply to applications filed more than
34 two years after the effective date of this section.
35 Section 9. This act shall take effect as follows:
36 (1) The following provisions shall take effect
37 immediately:
38 (i) The amendment or addition of section 10(b),
39 (e.1) and (h) of the act.
40 (ii) Section 8 of this act.
41 (iii) This section.
42 (2) The remainder of this act shall take effect in 60
43 days.
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