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        PRIOR PRINTER'S NO. 195                       PRINTER'S NO. 1916

THE GENERAL ASSEMBLY OF PENNSYLVANIA


HOUSE BILL

No. 169 Session of 2007


        INTRODUCED BY SOLOBAY, BELFANTI, BUXTON, CALTAGIRONE, CAPPELLI,
           CARROLL, FABRIZIO, FRANKEL, GALLOWAY, GEIST, GEORGE, GIBBONS,
           GOODMAN, GRUCELA, HORNAMAN, JAMES, KOTIK, KULA, MAHONEY,
           MANN, MELIO, NAILOR, PALLONE, PETRARCA, PETRONE, SAINATO,
           TANGRETTI, WOJNAROSKI, YOUNGBLOOD, SIPTROTH AND LONGIETTI,
           FEBRUARY 1, 2007

        AS REPORTED FROM COMMITTEE ON GAMING OVERSIGHT, HOUSE OF
           REPRESENTATIVES, AS AMENDED, JUNE 14, 2007

                                     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, for permitted games of chance and for prize
    10     limits.

    11     The General Assembly of the Commonwealth of Pennsylvania
    12  hereby enacts as follows:
    13     Section 1.  The definition of "daily drawing" in section 3 of  <--
    14  the act of December 19, 1988 (P.L.1262, No.156), known as the
    15  Local Option Small Games of Chance Act, amended December 19,
    16  1990 (P.L.812, No.195), is amended and the section is amended by
    17  adding a definition to read:
    18     SECTION 1.  THE DEFINITIONS OF "DAILY DRAWING" AND "GAMES OF   <--
    19  CHANCE" IN SECTION 3 OF THE ACT OF DECEMBER 19, 1988 (P.L.1262,


     1  NO.156), KNOWN AS THE LOCAL OPTION SMALL GAMES OF CHANCE ACT,
     2  AMENDED DECEMBER 19, 1990 (P.L.812, NO.195) AND OCTOBER 18, 2000
     3  (P.L.602, NO.79), ARE AMENDED AND THE SECTION IS AMENDED BY
     4  ADDING A DEFINITION TO READ:
     5  Section 3.  Definitions.
     6     The following words and phrases when used in this act shall
     7  have the meanings given to them in this section unless the
     8  context clearly indicates otherwise:
     9     * * *
    10     "Daily drawing."  A game in which a bona fide member selects
    11  or is assigned a number for a chance at a prize with the winner
    12  determined by a random drawing to take place on the eligible
    13  organization's premises during the same operating day. The term
    14  includes games commonly known as "member sign-in lotteries" and
    15  "half-and-half lotteries." Nothing in this act shall be
    16  construed to prohibit the carrying over of a jackpot where the
    17  winning number has not been entered in the game on a particular
    18  operating day. Daily drawing winners may be determined with the
    19  aid of a passive selection device or reference to drawings
    20  conducted by the department pursuant to the act of August 26,
    21  1971 (P.L.351, No.91), known as the State Lottery Law. Daily
    22  drawing chances may not be sold for an amount in excess of $1,
    23  and no more than one chance per individual may be sold [to an
    24  individual during the same operating day.] per drawing. Nothing
    25  in this definition shall restrict an eligible organization from
    26  conducting more than one drawing per day.
    27     * * *
    28     "GAMES OF CHANCE."  PUNCHBOARDS, DAILY DRAWINGS, WEEKLY        <--
    29  DRAWINGS, MONTHLY DRAWINGS, RAFFLES AND PULL-TABS, AS DEFINED IN
    30  THIS ACT, PROVIDED THAT NO SUCH GAME SHALL BE PLAYED BY OR WITH
    20070H0169B1916                  - 2 -     

     1  THE ASSISTANCE OF ANY MECHANICAL OR ELECTRICAL DEVICES OR MEDIA
     2  OTHER THAN A DISPENSING MACHINE OR PASSIVE SELECTION DEVICE AND
     3  FURTHER PROVIDED THAT THE PARTICULAR CHANCE TAKEN BY ANY PERSON
     4  IN ANY SUCH GAME SHALL NOT BE MADE CONTINGENT UPON ANY OTHER
     5  OCCURRENCE OR THE WINNING OF ANY OTHER CONTEST, BUT SHALL BE
     6  DETERMINED SOLELY AT THE DISCRETION OF THE PURCHASER. THIS
     7  DEFINITION SHALL NOT BE CONSTRUED TO AUTHORIZE ANY OTHER FORM OF
     8  GAMBLING CURRENTLY PROHIBITED UNDER ANY PROVISION OF TITLE 18 OF
     9  THE PENNSYLVANIA CONSOLIDATED STATUTES (RELATING TO CRIMES AND
    10  OFFENSES). NOTHING IN THIS ACT SHALL BE CONSTRUED TO AUTHORIZE
    11  GAMES COMMONLY KNOWN AS "SLOT MACHINES" OR "VIDEO POKER."
    12     * * *
    13     "Monthly drawing."  A game in which a bona fide member
    14  selects or receives a number or numbers for chance at a prize
    15  with the winner determined by a random drawing to take place on
    16  the eligible organization's premises during any operating month.
    17  Nothing in this act shall be construed to prohibit the carrying
    18  over of a jackpot where the winning number has not been entered
    19  in the game in a particular month. Monthly drawing winners may
    20  be determined with the aid of a passive selection device or
    21  reference to drawings conducted by the Department of Revenue
    22  pursuant to the act of August 26, 1971 (P.L.351, No.91), known
    23  as the State Lottery Law. Monthly drawing chances may not be
    24  sold for an amount in excess of $1.
    25     * * *
    26     Section 2.  Section 4 of the act, amended December 19, 1990
    27  (P.L.812, No.195), is amended to read:
    28  Section 4.  Games of chance permitted.
    29     Every eligible organization to which a license has been
    30  issued under the provisions of this act may conduct games of
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     1  chance for the purpose of raising funds for general operating
     2  expenses and for public interest purposes. All proceeds of games
     3  of chance shall be used [exclusively] for general operating
     4  expenses, for public interest purposes or for the purchase of
     5  games of chance as permitted by this act.
     6     Section 3.  Section 5(e) and (h) of the act, amended or added  <--
     7  October 18, 2000 (P.L.602, No.79), are amended to read:
     8     SECTION 3.  SECTION 5 OF THE ACT, AMENDED DECEMBER 19, 1990    <--
     9  (P.L.812, NO.195) AND OCTOBER 18, 2000 (P.L.602, NO.79), IS
    10  AMENDED TO READ:
    11  Section 5.  Prize limits.
    12     * * *                                                          <--
    13     (A)  INDIVIDUAL PRIZE LIMIT.--THE MAXIMUM CASH VALUE WHICH     <--
    14  MAY BE AWARDED FOR ANY SINGLE CHANCE SHALL BE $500.
    15     (B)  WEEKLY LIMIT.--NO MORE THAN $5,000 IN CASH OR
    16  MERCHANDISE SHALL BE AWARDED BY ANY ELIGIBLE ORGANIZATION IN ANY
    17  SEVEN-DAY PERIOD.
    18     (C)  LIMIT ON RAFFLES.--NO MORE THAN $5,000 IN CASH OR
    19  MERCHANDISE SHALL BE AWARDED IN RAFFLES IN ANY CALENDAR MONTH.
    20     (D)  EXCEPTION.--AN ELIGIBLE ORGANIZATION MAY CONDUCT A
    21  RAFFLE AND AWARD A PRIZE OR PRIZES VALUED IN EXCESS OF $500 EACH
    22  ONLY UNDER THE FOLLOWING CONDITIONS:
    23         (1)  THE LICENSING AUTHORITY HAS ISSUED A SPECIAL PERMIT
    24     FOR THE RAFFLE UNDER SECTION 11.
    25         (2)  ELIGIBLE ORGANIZATIONS SHALL BE ELIGIBLE TO RECEIVE
    26     NO MORE THAN TWO SPECIAL PERMITS IN ANY LICENSED YEAR EXCEPT
    27     THAT VOLUNTEER FIRE, AMBULANCE AND RESCUE ORGANIZATIONS SHALL
    28     BE ELIGIBLE TO RECEIVE NO MORE THAN THREE SPECIAL PERMITS IN
    29     ANY LICENSED YEAR.
    30         (3)  ONLY ONE RAFFLE MAY BE CONDUCTED UNDER EACH SPECIAL
    20070H0169B1916                  - 4 -     

     1     PERMIT.
     2         (4)  THE TOTAL CASH VALUE OF ALL PRIZES SHALL BE NO MORE
     3     THAN $100,000 PER CALENDAR YEAR.
     4     (e)  Limit on daily drawings.--Daily drawings shall be
     5  governed by the prize limitations contained in subsections (a)
     6  and (b). [An eligible organization shall not conduct daily
     7  drawings during a period when a weekly drawing is taking place.]
     8     * * *                                                          <--
     9     (F)  EXCEPTION.--THE PRIZE LIMITATION CONTAINED IN             <--
    10  SUBSECTIONS (A) AND (B) MAY BE EXCEEDED BY A DAILY DRAWING UNDER
    11  THE FOLLOWING CIRCUMSTANCES: A DAILY DRAWING MAY AWARD A PRIZE
    12  WHERE THE CASH VALUE IS IN EXCESS OF $500 IF SUCH PRIZE IS THE
    13  RESULT OF A CARRYOVER OF A DRAWING OR DRAWINGS WHICH RESULTED
    14  FROM THE WINNING NUMBER IN SUCH DRAWING OR DRAWINGS NOT BEING
    15  AMONG THE ELIGIBLE ENTRANTS IN SUCH DRAWINGS. NOTHING CONTAINED
    16  HEREIN SHALL AUTHORIZE THE PRIZE LIMITATIONS AS CONTAINED IN
    17  SUBSECTIONS (A) AND (B) TO BE EXCEEDED AS A RESULT OF A FAILURE
    18  TO CONDUCT A DRAWING ON AN OPERATING DAY DURING WHICH CHANCES
    19  WERE SOLD FOR A DAILY DRAWING OR FOR A DAILY DRAWING FOR WHICH
    20  CHANCES WERE SOLD IN EXCESS OF $1 OR FOR WHICH MORE THAN ONE
    21  CHANCE WAS SOLD TO AN ELIGIBLE PARTICIPANT.
    22     (G)  DAILY DRAWING AND WEEKLY DRAWING EXCEPTION.--WHEN A
    23  DAILY DRAWING OR WEEKLY DRAWING IS SET UP OR CONDUCTED IN SUCH A
    24  MANNER AS TO PAY OUT OR AWARD 100% OF THE GROSS REVENUES
    25  GENERATED FROM SUCH DRAWING, THE LIMITATIONS CONTAINED IN
    26  SUBSECTION (B) SHALL NOT APPLY.
    27     (h)  Limit on weekly drawings.--Weekly drawings shall be
    28  governed by the prize limitations contained in subsection (b).
    29  The prize limitation contained in subsection (b) may be exceeded
    30  by a weekly drawing under the following circumstances: a weekly
    20070H0169B1916                  - 5 -     

     1  drawing may award a prize where the cash value is in excess of
     2  $5,000 if such prize is the result of a carryover of a drawing
     3  or drawings which resulted from the winning number or numbers in
     4  such drawing or drawings not being among the eligible entrants
     5  in such drawings. Nothing contained in this act shall authorize
     6  the prize limitations as contained in subsection (b) to be
     7  exceeded as a result of a failure to conduct a drawing for a
     8  week during which chances were sold for a weekly drawing or for
     9  a weekly drawing for which chances were sold in excess of $1.
    10  [An eligible organization shall not conduct weekly drawings
    11  during a period when a daily drawing is taking place.]
    12     (I)  LIMIT ON MONTHLY DRAWINGS.--NO MORE THAN $10,000 IN CASH  <--
    13  OR MERCHANDISE MAY BE AWARDED IN ANY CALENDAR MONTH EXCEPT UNDER
    14  THE FOLLOWING CIRCUMSTANCES: A MONTHLY DRAWING MAY AWARD A PRIZE
    15  WHERE THE CASH VALUE IS IN EXCESS OF $10,000 IF THE PRIZE IS THE
    16  RESULT OF A CARRYOVER OF A DRAWING OR DRAWINGS THAT RESULTED
    17  FROM THE WINNING NUMBER OR NUMBERS IN THE DRAWING OR DRAWINGS
    18  NOT BEING AMONG THE ELIGIBLE ENTRANTS IN THE DRAWING. NOTHING
    19  CONTAINED IN THIS ACT SHALL AUTHORIZE THE PRIZE LIMITATIONS TO
    20  BE EXCEEDED AS A RESULT OF A FAILURE TO CONDUCT A DRAWING FOR A
    21  MONTH DURING WHICH CHANCES WERE SOLD FOR A MONTHLY DRAWING OR
    22  FOR A MONTHLY DRAWING FOR WHICH CHANCES WERE SOLD IN EXCESS OF
    23  $1.
    24     Section 4.  This act shall take effect in 60 days.




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