PRINTER'S NO. 635

THE GENERAL ASSEMBLY OF PENNSYLVANIA


HOUSE BILL

No. 557 Session of 1985


        INTRODUCED BY RIEGER, DONATUCCI, TRUMAN, TRELLO, CALTAGIRONE AND
           WIGGINS, MARCH 20, 1985

        REFERRED TO COMMITTEE ON URBAN AFFAIRS, MARCH 20, 1985

                                     AN ACT

     1  Providing for the operation of video poker machines in cities of
     2     the first class; imposing duties on the council of cities of
     3     the first class; providing for license fees and taxes and
     4     disposition of the proceeds; imposing penalties; and making
     5     repeals.

     6     The General Assembly of the Commonwealth of Pennsylvania
     7  hereby enacts as follows:
     8  Section 1.  Short title.
     9     This act shall be known and may be cited as the First Class
    10  City Video Poker Act.
    11  Section 2.  Definitions.
    12     The following words and phrases when used in this act shall
    13  have the meanings given to them in this section unless the
    14  context clearly indicates otherwise:
    15     "Council."  The council of a city of the first class, or any
    16  agency of city government designated by the council of a city of
    17  the first class to administer the provisions of this act.
    18     "Licensed establishment."  A restaurant, bar, tavern, hotel
    19  or club which has a valid Pennsylvania liquor license under the

     1  act of April 12, 1951 (P.L.90, No.21), known as the Liquor Code.
     2     "Net machine revenue."  The net profit remaining from the
     3  income of a video poker machine after all winning cash or prizes
     4  have been paid.
     5     "Video poker machine."  A device or machine which, upon
     6  insertion of a coin, is available to play or simulate the play
     7  of the game of poker, utilizing a video display and
     8  microprocessors and in which, whether by the skill of the player
     9  or by chance, the player may receive free games or credits which
    10  can be redeemed for cash or prizes or anything of value.
    11  Section 3.  Administration.
    12     The regulation, operation and administration of this act
    13  shall be undertaken by the council of cities of the first class.
    14  Council shall have the power and its duty shall be to:
    15         (1)  Provide for licensing and taxing procedures under
    16     this act.
    17         (2)  Prescribe all necessary application and reporting
    18     forms to be used under this act.
    19         (3)  Otherwise perform all acts necessary to administer
    20     and enforce the provisions of this act.
    21  Section 4.  Video poker machines permitted.
    22     Any licensed establishment in a city of the first class shall
    23  be permitted to place video poker machines into operation on its
    24  licensed premises upon compliance with and under the following
    25  conditions:
    26         (1)  The owner, or, in the case of a club, the proper
    27     authority, of the licensed establishment must obtain a
    28     license for each video poker machine. The license fee shall
    29     be $500 per machine per year. A stamp shall be affixed to
    30     each machine placed in operation as evidence that a current
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     1     license for the machine is in effect.
     2         (2)  No more than two video poker machines may be placed
     3     in operation on the premises of one licensed establishment.
     4         (3)  A video poker machine may not directly dispense
     5     coins, cash, tokens, tickets or any other article of exchange
     6     or value.
     7         (4)  All video poker machines shall have electronic
     8     accounting devices to verify the total amount of money played
     9     in the machine and the winnings of players.
    10         (5)  There shall be a maximum limit of $150 on any
    11     individual prize or winning from a video poker machine.
    12  Section 5.  Tax.
    13     (a)  Levy.--Council shall levy a video poker machine net
    14  revenues tax. The amount of the tax shall be 10% of the net
    15  machine revenue of each video poker machine.
    16     (b)  Collection.--The tax shall be collected by the owner,
    17  or, in the case of a club, the proper authority, of the licensed
    18  establishment in which the video poker machine is operated.
    19     (c)  Reports and remission of tax.--The owner or proper
    20  authority shall make a monthly report to council and remit the
    21  tax collected during the preceding month. The report shall
    22  include the following information:
    23         (1)  The name and address of the owner, or, in the case
    24     of a club, the proper authority, of the licensed
    25     establishment.
    26         (2)  The serial numbers and license numbers of the video
    27     poker machines.
    28         (3)  A computer printout from each video poker machine
    29     showing the total amount of money player in the machine and
    30     the winnings of players, or such other evidence as council
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     1     may require to verify the net machine revenue.
     2  Section 6.  Disposition of proceeds of license fees and tax.
     3     (a)  School district.--Except as provided in subsection (b),
     4  all license fees and taxes collected by council under this act
     5  shall be paid to the school district located in the city of the
     6  first class.
     7     (b)  Administrative costs.--Council may retain a maximum of
     8  2% of the license fees and taxes collected as reimbursement for
     9  the administration of this act.
    10  Section 7.  Violations.
    11     Any video poker machine found in use of the premises of a
    12  licensed establishment without a stamp evidencing current
    13  licensure shall be confiscated, and the owner of the licensed
    14  establishment shall be subject to a fine of $5,000 for the
    15  benefit of the city for each such machine.
    16  Section 8.  Unlawful use by minors.
    17     (a)  Minors.--No person under 21 years of age may use or play
    18  a video poker machine. A minor using or playing or attempting to
    19  use or play a video poker machine commits a summary offense and
    20  shall, upon conviction, pay a fine not in excess of $500.
    21     (b)  Licensed establishment.--A licensed establishment which
    22  permits a person under 21 years of age to play or use a video
    23  poker machine, whether or not that licensed establishment is
    24  actually aware of the minor's age, commits a summary offense and
    25  shall, upon conviction, pay a fine not in excess of $5,000. The
    26  establishment of the following facts by a person allowing a
    27  minor to operate a video poker machine shall constitute a
    28  defense to prosecution under this subsection:
    29         (1)  The minor falsely represented in writing that the
    30     minor was 21 years of age or over.
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     1         (2)  The appearance of the minor was such that an
     2     ordinary person of prudent judgment would believe the minor
     3     to be 21 years of age or over.
     4         (3)  The permission to operate the video poker machine
     5     was made in good faith, relying upon written representation
     6     and appearance and in the reasonable belief that the minor
     7     was actually 21 years of age or over.
     8  Section 9.  Exemption.
     9     The General Assembly specifically exempts cities of the first
    10  class in the Commonwealth from the provisions of section 2 of
    11  the Gambling Devices Transportation Act (64 Stat. 1134, 15
    12  U.S.C. § 1172) and deems shipments of video gaming devices into
    13  the Commonwealth as legal actions when such devices are for use
    14  in accordance with the provisions of this act.
    15  Section 10.  Repeals.
    16     (a)  Specific repeal.--The provisions of 18 Pa.C.S. § 5513
    17  (relating to gambling devices, gambling, etc.) are repealed to
    18  the extent that they are inconsistent with this act.
    19     (b)  General repeal.--All other acts and parts of acts are
    20  repealed insofar as they are inconsistent with this act.
    21  Section 11.  Effective date.
    22     This act shall take effect immediately.






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