PRINTER'S NO. 635
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 19850H0557B0635 - 2 -
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 19850H0557B0635 - 3 -
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. 19850H0557B0635 - 4 -
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. C1L04CHF/19850H0557B0635 - 5 -