H0864B3433A08875 SFR:NLG 06/21/18 #90 A08875
AMENDMENTS TO HOUSE BILL NO. 864
Sponsor: SENATOR ALLOWAY
Printer's No. 3433
Amend Bill, page 1, line 10, by inserting after "chance, "
repealing provisions relating to prohibition regarding pools,
Amend Bill, page 1, line 11, by inserting after "limits,"
, for distributor licenses
Amend Bill, page 1, line 12, by inserting after "for"
registration of manufacturers and for
Amend Bill, page 1, line 14, by striking out "and,"
Amend Bill, page 1, line 15, by striking out the period after
"enforcement" and inserting
, repealing provisions relating to advertising and further
providing for criminal penalties; and, in tavern gaming,
further providing for definitions, for licenses, for
application, for approval, for change in ownership, for prize
limits, for tavern raffle, for distribution of net revenue,
for tavern games tax and for reports, providing for e-tab
manufacturer requirements and further providing for
enforcement and for prohibitions.
Amend Bill, page 2, lines 24 through 28, by striking out all
of said lines and inserting
Section 2. The definitions of "affiliated nonprofit
organization," "eligible organization," "games of chance,"
"major league sports drawing," "major league sports team,"
"pool" and "tavern games" in section 103 of the act are amended
and the section is amended by adding definitions to read:
Amend Bill, page 4, by inserting between lines 5 and 6
"E-tab." A pull-tab that is played on an electronic pull-tab
device.
"Electronic pull-tab device." A hand held, portable
electronic device used to play pull-tab games that requires a
coded entry to activate play but does not allow the use of
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coins, currency or tokens to activate play and requires a player
to activate or open an e-tab ticket on each individual line, row
or column or each ticket.
Amend Bill, page 4, by inserting between lines 14 and 15
"Games of chance."
(1) Any of the following:
(i) Punchboards, daily drawings, weekly drawings,
50/50 drawings, raffles, tavern games, pools, race night
games and pull-tabs, as defined in this act, provided
that no such game shall be played by or with the
assistance of any mechanical or electrical devices or
media other than a dispensing machine or passive
selection device and further provided that the particular
chance taken by any person in any such game shall not be
made contingent upon any other occurrence or the winning
of any other contest, but shall be determined solely at
the discretion of the purchaser.
(ii) E-tabs.
(2) This definition shall not be construed to authorize
any other form of gambling currently prohibited under any
provision of 18 Pa.C.S. (relating to crimes and offenses) or
authorized under 4 Pa.C.S. (relating to amusements).
(3) Nothing in this act shall be construed to authorize
games commonly known as "slot machines" or "video poker" or
other games regulated by the Pennsylvania Gaming Control
Board.
Amend Bill, page 5, lines 17 and 18, by striking out all of
said lines and inserting
"Pool." An activity in which a person pays an entry fee for
each chance to win cash or merchandise based on the outcome of
an event or series of events wherein the participants in the
event or series of events are natural persons or animals.[, and
to which all of the following apply:
(1) The maximum number of individuals that may
participate in a pool is 100 people.
(2) The maximum entry fee for each individual entry in a
pool is $20.
(3) Other than the entry fee, no other money or thing of
value is paid or given for participation in a pool.
(4) There is at least one guaranteed winner from among
the participants.
(5) All entry fees collected for entry into the pool are
paid as prizes to one or more participants in the pool.
(6) No entry fees or portions thereof are retained by
the person or eligible organization operating the pool.]
* * *
"Tavern games." Pull-tabs, tavern daily drawings, 50/50
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drawings, e-tabs, pools and tavern raffles.
* * *
Section 3. Section 301.1 of the act is repealed:
[Section 301.1. Prohibition regarding pools.
The operation of a pool must comply with the Professional and
Amateur Sports Protection Act (Public Law 102-559, 28 U.S.C. ยง
3701 et seq.) or other Federal law in the operation of or
participation in the pool.]
Section 4. Sections 302, 304(g)(1) and 304.1 of the act are
amended to read:
Amend Bill, page 6, line 18, by inserting a bracket before
"(4)"
Amend Bill, page 6, line 21, by striking out the bracket
before "(b)"
Amend Bill, page 6, line 21, by striking out the bracket
after "or"
Amend Bill, page 6, line 21, by inserting a bracket after
"(c)."
Amend Bill, page 6, line 23, by inserting a bracket before
the comma after "may"
Amend Bill, page 6, line 24, by inserting a bracket after
"(d)(4),"
Amend Bill, page 7, by inserting between lines 29 and 30
Section 304. Distributor licenses.
* * *
(g) Ineligibility.--The department shall not issue or renew
a distributor license for the sale of games of chance to a
person, including any corporation, firm or partnership which has
as an officer, director or other person in a supervisory or
management position, or employee eligible to make sales on
behalf of the distributor, who:
(1) has been convicted of a [felony] misdemeanor in a
state or Federal court within the past five years; or
* * *
Amend Bill, page 8, line 2, by inserting after "GAME"
or team event
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Amend Bill, page 8, line 11, by inserting after "GAME"
or team event
Amend Bill, page 8, line 19, by inserting after "GAME"
, team event
Amend Bill, page 8, line 21, by inserting after "GAME"
, team event
Amend Bill, page 8, by inserting between lines 25 and 26
(b.3) Outside sales.--Notwithstanding subsection (b.2),
athletic event drawing tickets may be sold prior to a home game
or car race in an off-ally designated parking area adjacent to
the arena, stadium, grandstand or bleachers or similar facility
where the home game or car race is being conducted and which is
not separated by a highway or street, unless the highway or
street is adjacent to the arena, stadium, grandstand, bleachers
or similar facility.
Amend Bill, page 10, by inserting between lines 14 and 15
(i) Definition.--As used in this section, the term "team
event" means a practice, scrimmage, exhibition, or similar event
at the home stadium or training camp facility of an athletic
team under paragraph (1), (2), (3) or (4) of the definition of
"athletic team" in section 103.
Amend Bill, page 10, line 15, by striking out "4" and
inserting
5
Amend Bill, page 12, by inserting between lines 6 and 7
Section 6. Section 305 of the act is amended by adding
subsections to read:
Section 305. Registration of manufacturers.
* * *
(e) E-tab manufacturer reporting requirements.--
(1) Notwithstanding the provisions of section 501(a),
the manufacturer of e-tabs shall submit an annual report to
the department for the preceding 12-month period in a form
and manner as prescribed by the department.
(2) The report shall be filed under oath or affirmation
of the manufacturer and shall include the following
information:
(i) The proceeds received by each club licensee from
each e-tab game conducted, itemized by week.
(ii) The amount of prizes paid from all e-tab games,
itemized by week.
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(iii) Any other costs incurred related to the
conduct of e-tab games.
(3) The report shall be distributed and published in the
manner as provided under section 501(b) and (c).
(f) Records.--A manufacturer of e-tabs shall maintain
records as required by the department for the enforcement of
this act. Such records necessary to conduct random audits shall
be made available to the Bureau of Liquor Control Enforcement,
the department and any other entity authorized to enforce or
conduct audits under this act.
Amend Bill, page 12, line 7, by striking out "5" and
inserting
7
Amend Bill, page 13, line 13, by inserting a bracket before
"three"
Amend Bill, page 13, line 13, by inserting after "three"
] four
Amend Bill, page 13, by inserting between lines 21 and 22
Section 8. Section 704 of the act is repealed:
[Section 704. 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, 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 publications
which are limited in their circulation to members of the
eligible organization.]
Section 9. Section 707(c) of the act is amended to read:
Section 707. Criminal penalties.
* * *
(c) Distributors and manufacturers.--Any person who
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 register
and obtain a permit therefor is guilty of a [misdemeanor of the
first degree] felony of the third degree, provided that no
license or permit shall be required for the manufacture or
distribution of raffle tickets.
* * *
Section 10. Section 902 of the act is amended by adding a
definition to read:
Section 902. Definitions.
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The following words and phrases when used in this chapter
shall have the meanings given to them in this section unless the
context clearly indicates otherwise:
* * *
"Eating place licensee." An eating place or hotel as defined
in section 102 of the act of April 12, 1951 (P.L.90, No.21),
known as the Liquor Code, that is licensed to sell liquor under
the Liquor Code.
* * *
Section 11. Sections 903, 904, 905, 906, 907(b), 908.1, 909,
909.1(a), (b), (c) and (h) and 912 of the act are amended to
read:
Section 903. Licenses.
(a) Application.--A restaurant licensee or eating place
licensee may apply to the board for a license to conduct tavern
games at a licensed premises located in a municipality that has
adopted a referendum to allow small games of chance under
section 703.
(b) Information.--The application under subsection (a) shall
include the following information and must be less than three
pages in length:
(1) The name, address and photograph of the applicant.
(2) A current tax lien certificate issued by the
department and a certificate from the Department of Labor and
Industry of payment of all workers' compensation and
unemployment compensation owed.
(3) The details of any license issued under 4 Pa.C.S.
Pt. II (relating to gaming), the act of April 12, 1951
(P.L.90, No.21), known as the Liquor Code, or this act which
was applied for or in which the applicant or other owner has
an interest.
(4) Certified consent by the applicant, including each
owner and officer of the restaurant licensee or eating place
licensee, to a Pennsylvania State Police background
investigation by the bureau.
(5) Relating to criminal information, disclosure of all
arrests and citations of the applicant, including nontraffic
summary offenses. The information shall include all of the
following:
(i) A brief description of the circumstances
surrounding the arrest or issuance of the citation.
(ii) The specific offense charged.
(iii) The ultimate disposition of the charge,
including any dismissal, plea bargain, conviction,
sentence[, pardon, expungement] or order of Accelerated
Rehabilitative Disposition.
(6) Financial interests and transactions as required by
the bureau.
(7) Relating to citations of the applicant issued under
the Liquor Code.
(8) Relating to disclosure of conditional license
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agreements entered into under the Liquor Code.
(9) Any other information required by the board.
(c) Duty of bureau.--The bureau shall conduct a background
investigation of each applicant, the scope of which shall be
determined by the bureau.
(d) Review.--Within [six months] 30 days of receipt of the
background investigation report from the bureau, the board shall
approve or disapprove the application.
(e) Background investigation.--Each applicant shall include
information and documentation as required to establish personal
and financial suitability, honesty and integrity. Information
shall include:
(1) [Criminal history record information.] A criminal
history record information check obtained from the
Pennsylvania State Police, as defined in 18 Pa.C.S. ยง 9102
(relating to definitions) and permitted by 18 Pa.C.S. ยง
9121(b) (relating to general regulations).
(2) Financial background information.
(3) Regulatory history before the board or other
Commonwealth agency.
(4) Other information required by the bureau.
(f) Personal interview.--If the bureau determines that the
results of the background report investigation warrant
additional review of the individual, the bureau shall conduct a
personal interview with the applicant and may request
information and interviews from other personal or professional
associates.
(g) Cooperation.--The applicant shall cooperate with the
bureau as requested during the conduct of the background
investigation. Any refusal to provide the information required
under this section or to consent to a background investigation
shall result in the immediate denial of a license by the board.
(h) [Costs.--The applicant shall reimburse the bureau for
the actual costs of conducting the background investigation. The
board shall not approve an applicant that has not fully
reimbursed the bureau for the investigation.] (Reserved).
(i) Approval.--[The bureau shall transmit the investigative
report and may make a recommendation to the board.] The board
shall review the information obtained under this section to
determine if the applicant possesses the following:
(1) Financial stability, integrity and responsibility.
(2) Sufficient business experience and ability to
effectively operate tavern games as part of the restaurant
licensee's operator or eating place licensee's operator.
(3) Character, honesty and integrity to be licensed to
operate tavern games in a responsible and lawful manner.
(j) Disapproval.--The board may disapprove the issuance of a
tavern gaming license for the following reasons:
(1) A license shall not be issued to a restaurant
licensee or eating place licensee whose liquor license is in
safekeeping pursuant to section 474.1 of the Liquor Code.
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(2) A license shall not be issued to a location that is
subject to a pending objection under section 470(a.1) of the
Liquor Code.
(3) A license shall not be issued to a location that is
subject to:
(i) a pending license suspension under section 471
of the Liquor Code; or
(ii) a one-year prohibition on the issuance or
transfer of a license under section 471(b) of the Liquor
Code.
Section 904. Application.
(a) Application fee.--An applicant shall pay the board a
nonrefundable application fee of [$1,000.] $500. If possible,
the application should not exceed two pages in length.
[(b) Investigative fee.--An applicant shall pay an
investigative fee of $1,000 to the bureau.
(c) Costs.--In addition to the fee under subsection (b), an
applicant and any owner and officer of the applicant shall pay
for the actual costs of a background investigation conducted by
the bureau that exceed the application fee. The bureau may:
(1) Charge an estimated amount to be provided prior to
the background investigation.
(2) Submit for reimbursement from the applicant for the
additional costs incurred in the background investigation.
(d) Funds.--Funds collected under subsections (b) and (c)
shall augment the funds appropriated to the Pennsylvania Gaming
Control Board under 4 Pa.C.S. (relating to amusements).]
Section 905. Approval.
(a) Issuance.--Upon being satisfied that the requirements of
section 903 have been met, the board may approve the application
and issue a tavern games license for a period of one year. [The
board may enter into an agreement with the licensee concerning
additional restrictions on the license, and this agreement shall
be binding on the licensee. Failure of the licensee to adhere to
the agreement will be cause for penalties under section 913(c)
and for the nonrenewal of the license under section 913(f).]
(b) Renewal.--A license shall be renewed annually. A license
renewal shall not require review of the bureau, unless requested
by the board. The board may refuse to renew a tavern gaming
license for the following reasons:
(1) A license shall not be issued to a restaurant
licensee or eating place licensee whose liquor license is in
safekeeping under section 474.1 of the act of April 12, 1951
(P.L.90, No.21), known as the Liquor Code.
(2) A license shall not be issued to a location that is
subject to a pending objection under section 470(a.1) of the
Liquor Code.
(3) A license shall not be issued to a location that is
subject to:
(i) a pending license suspension under section 471
of the Liquor Code; or
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(ii) a one-year prohibition on the issuance or
transfer of a license under section 471(b) of the Liquor
Code.
(c) [Fee.--Upon approval, the] Renewal fee.--An approved
applicant shall pay [a $2,000 license fee to be deposited in the
General Fund. The annual renewal fee shall be $1,000.] an annual
renewal fee of $1,000.
(d) Entitlement.--Nothing under this chapter shall be
construed to create an entitlement to a license by a person. The
board shall have sole discretion to issue, renew, condition,
suspend, revoke or deny a license based on the requirements of
this chapter and whether the issuance and maintenance of the
license are in the best interests of the Commonwealth.
(e) Nontransferability.--A license shall be a grant of
privilege to conduct tavern games. A license may not be sold,
transferred or assigned to any other person. A licensee may not
pledge or otherwise grant a security interest in or lien on the
license. The board shall have the sole discretion to issue,
renew, condition or deny the issuance of a license.
Section 906. Change in ownership.
(a) Notice.--A licensee shall notify the board of a change
of ownership of the premises or sale or transfer of the
restaurant license.
(b) Qualification.--The purchaser or transferee of the
assets or premises of a licensee must independently qualify for
a license[,] and pay the license fee [and undergo and pay fees
and costs for a background investigation] under section 903.
Section 907. Prize limits.
* * *
(b) Aggregate prize limit.--No more than [$35,000] $50,000
in prizes may be awarded from tavern games by a licensee in a
seven-day period.
Section 908.1. Tavern raffle.
The following shall apply to a tavern raffle:
(1) No more than one tavern raffle may be held in a
calendar month.
(2) A tavern raffle must be held for a designated
charitable purpose.
(3) Each individual participating in the tavern raffle
must be informed of the charitable purpose involved.
(4) At least 50% of the net revenues from the tavern
raffle shall be transmitted to the designated charity within
seven days of the tavern raffle.
(5) Any net revenues not transmitted under paragraph (4)
shall be distributed as follows:
(i) [Sixty] Fifty percent shall be paid to the
Commonwealth.
(ii) [Thirty-five] Forty-five percent may be
retained by the licensee.
(iii) Five percent shall be paid to the Commonwealth
and deposited into the restricted receipts account
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established in section 909.3.
(6) A tavern raffle prize remaining unclaimed by a
winner 60 days after the tavern raffle was held shall be
donated by the licensee within 30 days to the designated
charitable organization for which the tavern raffle was
conducted.
Section 909. Distribution of net revenue.
Beginning January 1, 2014, the net revenue from tavern games
received by a licensee shall be distributed as follows:
(1) [Sixty] Fifty percent of the net revenue obtained in
any calendar year shall be paid to the Commonwealth.
(2) [Thirty-five] Forty-five percent of the net revenue
obtained in any calendar year may be retained by the
licensee.
(3) Five percent shall be paid to the Commonwealth and
deposited into the restricted receipts account established in
section 909.3.
Section 909.1. Tavern games tax.
(a) Imposition.--There is imposed a tax of [60%] 51% of the
net revenue from tavern games sold by a licensed distributor to
a licensee within this Commonwealth. Sales tax may only be
charged on the licensed distributor's fee on the cost of
tickets.
* * *
(b) Collection.--The tax imposed under subsection (a) must
be collected by the licensed distributor from the licensee in an
instance where the tavern game is required to be purchased from
a licensed distributor under this act and must be paid over to
the Commonwealth[.] with the Commonwealth distributing 5% of the
net revenue specified under subsection (a) to the State Lottery
Fund.
(c) Other games.--In an instance where the tavern game is
not required to be purchased from a licensed distributor under
this act, a tax of [60%] 55% is imposed upon the net revenue
from tavern daily drawings and tavern raffles under section
908.1 and must be paid to the Commonwealth by the licensee.
* * *
(h) Penalties and interest.--If a licensee or licensed
distributor fails to file the return required under subsection
(e) or fails to pay the tax imposed under subsection (a) or (c),
the department may do the following:
(1) assess the amount of tax due;
(2) impose and assess an administrative penalty equal to
10% of the tax due but unpaid for each quarter or fraction
thereof that the tax remains unpaid together with interest at
the rate established under section 806 of the act of April 9,
1929 (P.L.343, No.176), known as The Fiscal Code, on the tax
from the time the tax became due. The penalty provided in
this paragraph must be added to the tax and assessed and
collected at the same time and in the same manner as a part
of the tax. Unless otherwise specified, the tax must be
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assessed, collected and enforced by the department under the
provisions of Article II of the act of March 4, 1971 (P.L.6,
No.2), known as the Tax Reform Code of 1971;
(3) [notify the board that a licensee has not filed
returns or has not paid tax. The board may] suspend or revoke
a licensee's license; or
(4) revoke a licensed distributor's license.
* * *
Section 912. Reports.
A licensee shall submit an annual report to the [board and
the] department for the preceding year on a form and in a manner
prescribed by the department. The department shall develop a
schedule for the submission of the annual report. The report
shall include:
(1) Prizes awarded as required under section 335 of the
act of March 4, 1971 (P.L.6, No.2), known as the Tax Reform
Code of 1971.
[(2) Net revenue received from each tavern game
conducted, itemized by week.
(3) Amount of prizes paid from all tavern games,
itemized by week.]
(4) Amount of tax remitted to the department.
(5) Amount given to designated charities from tavern
raffles.
(6) Other information as required by the department.
Section 12. The act is amended by adding a section to read:
Section 912.1. E-tab manufacturer requirements.
(a) Manufacturer reporting requirements.--
(1) Notwithstanding the provisions of section 501(a),
the manufacturer of e-tabs shall submit an annual report to
the department for the preceding 12-month period in a form
and manner as prescribed by the department.
(2) The report shall be filed under oath or affirmation
of the manufacturer and shall include the following
information:
(i) The proceeds received by each licensee from each
e-tab game conducted, itemized by week.
(ii) The amount of prizes paid from all e-tab games,
itemized by week.
(iii) Any other costs incurred related to the
conduct of e-tab games.
(3) The report shall be distributed and published in the
manner as provided under section 501(b) and (c).
(b) Records.--A manufacturer of e-tabs shall maintain
records as required by the department for the enforcement of
this act. Such records necessary to conduct random audits shall
be made available to the Bureau of Liquor Control Enforcement,
the department and any other entity authorized to enforce or
conduct audits under this act.
Section 13. Sections 913 and 914 of the act are amended to
read:
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Section 913. Enforcement.
(a) Board.--The board may, following notice and hearing,
impose penalties or suspend or revoke a license under this
chapter.
[(b) Authority of department.--Notwithstanding any law to
the contrary, the department may report violations of this
chapter to the board and to the Bureau of Liquor Control
Enforcement.]
(c) [Penalties] Civil penalties.--The board may impose a
civil penalty for a violation of this chapter in accordance with
the following:
(1) Up to [$2,000] $800 for an initial violation.
(2) Up to [$3,000] $1,000 for a second violation.
(3) Up to [$5,000] $2,000 for a third or subsequent
violation.
(d) Criminal penalty.--A violation of this chapter shall be
a misdemeanor of the third degree. A second or subsequent
offense shall be a misdemeanor of the second degree.
[(e) Administrative law judge.--An administrative law judge
under section 212 of the act of April 12, 1951 (P.L.90, No.21),
known as the Liquor Code, may impose the penalties under this
section following the issuance of a citation by the Bureau of
Liquor Control Enforcement.]
(f) Suspension, revocation or failure to renew.--
(1) In addition to any other sanctions the board may
impose under this chapter [or under the Liquor Code], the
board may, at its discretion, suspend, revoke or deny renewal
of any license issued under this chapter if it receives any
information from any source and determines that:
(i) The applicant or any of its officers, directors,
owners or employees:
(A) Is in violation of any provision of this
chapter.
(B) Furnished the board with false or misleading
information.
(ii) The information contained in the applicant's
initial application or any renewal application is no
longer true and correct.
(2) In the event of a revocation, suspension or failure
to renew, the applicant's authorization to conduct the
previously approved activity shall immediately cease, and all
fees paid in connection therewith shall be deemed to be
forfeited. In the event of a suspension, the applicant's
authorization to conduct the previously approved activity
shall immediately cease until the board has notified the
applicant that the suspension is no longer in effect.
(3) The board shall immediately and permanently revoke a
license issued under this chapter if the licensee has
committed four or more violations of this chapter in a two-
year period.
(g) Law enforcement officials.--Nothing in this chapter may
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restrict or limit the power of a State, county or local law
enforcement official to conduct investigations and file criminal
charges under this chapter.
(h) Violations.--
(1) Except as provided in paragraph (2), a violation of
this chapter by a restaurant licensee or eating place
licensee shall not constitute a violation of the act of April
12, 1951 (P.L.90, No.21), known as the Liquor Code.
(2) If a restaurant licensee or eating place licensee
has committed four or more violations of this act, the bureau
may enforce a violation of this chapter as a violation of the
Liquor Code.
Section 914. Prohibitions.
The following shall apply to any license authorized or issued
under this chapter:
(1) No license may be issued to a restaurant licensee or
eating place licensee whose place of business is located in a
licensed facility as defined in 4 Pa.C.S. ยง 1103 (relating to
definitions).
(2) No license may be issued to a place of business on
the grounds of a facility where a major league sports team
conducts games or races.
(3) No license may be issued to a place of business that
has been decreed a nuisance pursuant to section 611 of the
act of April 12, 1951 (P.L.90, No.21), known as the Liquor
Code.
(4) The board shall be prohibited from issuing a license
to any person who has been convicted of a felony offense or
misdemeanor gambling offense in any jurisdiction unless 15
years have elapsed from the date of conviction of the
offense.
(5) It shall be unlawful for an individual under 21
years of age to play or attempt to play or otherwise
participate in a tavern game.
(6) It shall be unlawful for a licensee to permit an
employee under 18 years of age to operate tavern games.
(7) It shall be unlawful for an owner, officer or
employee of a licensee to sell, operate or otherwise
participate in the conduct of tavern games if the employee
has been convicted in any jurisdiction of a felony or a
misdemeanor gambling offense unless 15 years have elapsed
from the date of conviction of the offense.
(8) It shall be unlawful for an owner or officer of a
licensee or for an employee of the licensee who operates the
tavern game to participate in the game. This paragraph shall
not apply to a raffle.
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