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                                                      PRINTER'S NO. 1234

THE GENERAL ASSEMBLY OF PENNSYLVANIA


HOUSE BILL

No. 1088 Session of 1997


        INTRODUCED BY HANNA, DALEY, LEH, PESCI AND BOSCOLA,
           APRIL 2, 1997

        REFERRED TO COMMITTEE ON STATE GOVERNMENT, APRIL 2, 1997

                                     AN ACT

     1  Amending the act of December 19, 1988 (P.L.1262, No.156),
     2     entitled, as amended, "An act providing for the licensing of
     3     eligible organizations to conduct games of chance, for the
     4     licensing of persons to distribute games of chance, for the
     5     registration of manufacturers of games of chance, and for
     6     suspensions and revocations of licenses and permits;
     7     requiring records; providing for local referendum by
     8     electorate; and prescribing penalties," further providing for
     9     definitions and eligible organizations.

    10     The General Assembly of the Commonwealth of Pennsylvania
    11  hereby enacts as follows:
    12     Section 1.  Section 2 of the act of December 19, 1988
    13  (P.L.1262, No.156), known as the Local Option Small Games of
    14  Chance Act, is repealed.
    15     Section 2.  The definitions of "eligible organizations" and
    16  "public interest purposes" in section 3 of the act are amended
    17  and the section is amended by adding a definition to read:
    18  Section 3.  Definitions.
    19     The following words and phrases when used in this act shall
    20  have the meanings given to them in this section unless the
    21  context clearly indicates otherwise:

     1     * * *
     2     "Commercial establishment."  An establishment organized for
     3  profit.
     4     * * *
     5     "Eligible organizations."  [Includes] The term includes
     6  commercial establishments and qualifying nonprofit charitable,
     7  religious, fraternal and veterans organizations, clubs and civic
     8  and service associations as defined by this act. In order to
     9  qualify as an eligible organization for purposes of this act, an
    10  organization shall have been in existence and fulfilling its
    11  purposes for one year prior to the date of application for a
    12  license.
    13     * * *
    14     ["Public interest purposes."  One or more of the following:
    15         (1)  Benefiting persons by enhancing their opportunity
    16     for religious or education advancement, by relieving or
    17     protecting them from disease, suffering or distress, by
    18     contributing to their physical, emotional or social well-
    19     being, by assisting them in establishing themselves in life
    20     as worthy and useful citizens or by increasing their
    21     comprehension of and devotion to the principles upon which
    22     this nation was founded.
    23         (2)  Initiating, performing or fostering worthy public
    24     works or enabling or furthering the erection or maintenance
    25     of public structures.
    26         (3)  Lessening the burdens borne by government or
    27     voluntarily supporting, augmenting or supplementing services
    28     which government would normally render to the people.
    29         (4)  Improving, expanding, maintaining or repairing real
    30     property owned or leased by an eligible organization and used
    19970H1088B1234                  - 2 -

     1     for purposes specified in paragraphs (1), (2) and (3).
     2  The term does not include the erection or acquisition of any
     3  real property, unless the property will be used exclusively for
     4  one or more of the purposes specified in this definition.]
     5     * * *
     6     Section 3.  Sections 4 and 12(a) of the act, amended December
     7  19, 1990 (P.L.812, No.195), are amended to read:
     8  Section 4.  Games of chance permitted.
     9     Every eligible organization to which a license has been
    10  issued under the provisions of this act may conduct games of
    11  chance [for the purpose of raising funds for public interest
    12  purposes. All proceeds of games of chance shall be used
    13  exclusively for public interest purposes or for the purchase of
    14  games of chance as permitted by this act].
    15  Section 12.  Revocation of licenses.
    16     (a)  Grounds.--The licensing authority shall revoke or refuse
    17  to renew the license of any eligible organization whenever the
    18  district attorney finds upon complaint and investigation that:
    19         [(1)  Any of the funds derived from the operation of
    20     games of chance are used for any purpose other than for
    21     public interest purposes or for the purchase of games of
    22     chance as permitted by this act.]
    23         (2)  Any person under 18 years of age is operating or
    24     playing games of chance as defined in this act.
    25         (3)  The eligible organization has permitted any person
    26     who has been convicted of a felony in a Federal or State
    27     court within the past five years or has been convicted in a
    28     Federal or State court within the past ten years of a
    29     violation of the act of July 10, 1981 (P.L.214, No.67), known
    30     as the Bingo Law, or of this act, to manage, set up,
    19970H1088B1234                  - 3 -

     1     supervise or participate in the operation of games of chance.
     2         (4)  The facility in which the games of chance are played
     3     does not have adequate means of ingress and egress and does
     4     not have adequate sanitary facilities available in the area.
     5         (5)  Any person or persons other than a manager, officer,
     6     director, bar personnel or a bona fide member of an eligible
     7     organization have been involved in managing, setting up,
     8     operating or running games of chance.
     9         (6)  Any person has received compensation for conducting
    10     games of chance.
    11         (7)  Any prize has been awarded in excess of the limits
    12     permitted under this act.
    13         (8)  The eligible organization has violated any condition
    14     of a special permit issued pursuant to section 11.
    15         (9)  The eligible organization conducts the games of
    16     chance under a lease which calls for:
    17             (i)  leasing such premises from the owner thereof
    18         under an oral agreement; or
    19             (ii)  leasing such premises from the owner thereof
    20         under a written agreement at a rental which is determined
    21         by the amount of receipts realized from the playing of
    22         games of chance.
    23         (10)  False or erroneous information was provided in the
    24     original application.
    25         (11)  An eligible organization has been convicted of a
    26     violation of this act as evidenced by a certified record of
    27     the conviction.
    28         (12)  The eligible organization has permitted another
    29     eligible organization to conduct small games of chance on its
    30     licensed premises without suspending its own operation of
    19970H1088B1234                  - 4 -

     1     small games of chance during the period that the other
     2     licensed eligible organization is conducting its games on the
     3     premises.
     4     * * *
     5     Section 4.  This act shall take effect in 60 days.

















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