HOUSE AMENDED

THE GENERAL ASSEMBLY OF PENNSYLVANIA

SENATE BILL

INTRODUCED BY EARLL, FOLMER, SOLOBAY, CORMAN, ORIE, SCARNATI, BOSCOLA, FONTANA, FERLO, RAFFERTY, ALLOWAY, PICCOLA, COSTA, YAW, HUGHES, KASUNIC, WAUGH, M. WHITE, WASHINGTON, EICHELBERGER, BROWNE, VOGEL, LEACH, YUDICHAK, PIPPY, MENSCH, BREWSTER, WOZNIAK, DINNIMAN AND ARGALL, FEBRUARY 23, 2011

AS AMENDED ON SECOND CONSIDERATION, HOUSE OF REPRESENTATIVES, JUNE 13, 2012   

AN ACT

Amending the act of December 19, 1988 (P.L.1262, No.156),

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entitled, as amended, "An act providing for the licensing of

eligible organizations to conduct games of chance, for the

licensing of persons to distribute games of chance, for the

registration of manufacturers of games of chance, and for

suspensions and revocations of licenses and permits;

requiring records; providing for local referendum by

electorate; and prescribing penalties," further providing for

legislative intent, for definitions, for games of chance

permitted, for prize limits, for limits on sales, for

distributor licenses, for regulations, for licensing of

eligible organizations and for special permits; providing for

club licensees; further providing for revocation of licenses,

for enforcement, for local option, for advertising and for

prohibited persons; providing for civil penalties; further

providing for penalties; and making editorial changes.

Amending the act of December 19, 1988 (P.L.1262, No.156),

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entitled, as amended, "An act providing for the licensing of

eligible organizations to conduct games of chance, for the

licensing of persons to distribute games of chance, for the

registration of manufacturers of games of chance, and for

suspensions and revocations of licenses and permits;

requiring records; providing for local referendum by

electorate; and prescribing penalties," further providing for

legislative intent, for definitions, for games of chance

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permitted and for prize limits, for limits on sales, for

distributor licenses, for registration of manufacturers, for

regulations, for licensing of eligible organizations and for

special permits; providing for club licensees; further

providing for revocation of licenses, for local option, for

advertising and for penalties; and making editorial changes. 

definitions and for games of chance permitted; providing for

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Major League Baseball, National Hockey League or National

Basketball Association 50/50 raffle; AND FURTHER PROVIDING

FOR REGULATIONS, FOR LICENSING OF ELIGIBLE ORGANIZATIONS TO

CONDUCT GAMES OF CHANCE AND FOR DISTRIBUTION OF PROCEEDS.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

Section 1.  The act of December 19, 1988 (P.L.1262, No.156),

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known as the Local Option Small Games of Chance Act, is amended

by adding a chapter heading to read:

CHAPTER 1

PRELIMINARY PROVISIONS

Section 2.  Section 1 of the act is renumbered to read:

Section [1] 101.  Short title.

This act shall be known and may be cited as the Local Option

Small Games of Chance Act.

Section 2.1.  Section 2 of the act is renumbered and amended

to read:

Section [2] 102.  Legislative intent.

The General Assembly hereby declares that the playing of

[small] games of chance for the purpose of raising funds, by

certain nonprofit associations, for the promotion of charitable

or civic purposes, is in the public interest. In some cases the

proceeds from games of chance may be utilized to support certain

operating expenses of certain organizations.

It is hereby declared to be the policy of the General

Assembly that all phases of licensing, operation and regulation

of [small] games of chance be strictly controlled, and that all

laws and regulations with respect thereto as well as all

gambling laws should be strictly construed and rigidly enforced.

The General Assembly recognizes the possibility of

association between commercial gambling and organized crime, and

wishes to discourage commercialization of [small] games of

chance, prevent participation by organized crime and prevent the

diversion of funds from the purposes herein authorized.

Section 3.  The definitions of "civic and service

associations," "club," "daily drawing," "eligible

organizations," "fraternal organizations," "games of chance,"

"public interest purposes," "raffle" and "weekly drawing" in

section 3 of the act, amended December 19, 1990 (P.L.812,

No.195) and October 18, 2000 (P.L.602, No.79), are amended and

the section is renumbered and amended by adding definitions to

read:

Section [3] 103.  Definitions.

The following words and phrases when used in this act shall

have the meanings given to them in this section unless the

context clearly indicates otherwise:

* * *

"Civic and service [associations] association."  Any

Statewide or branch, lodge or chapter of a nonprofit national or

State organization which is authorized by its written

constitution, charter, articles of incorporation or bylaws to

engage in a civic or service purpose within this Commonwealth,

which shall have existed in this Commonwealth for one year. The

term also means a similar local nonprofit organization, not

affiliated with a national or State organization, which is

recognized by a resolution adopted by the governing body of the

municipality in which the organization conducts its principal

activities. The term shall include[, but not be limited to,] 

Statewide or local bona fide sportsmen's and wildlife

associations, federations or clubs, [Statewide or local in

nature,] volunteer fire companies, volunteer rescue squads and

volunteer ambulance associations and [bona fide] senior citizens

organizations. In the case of bona fide senior citizens

organizations, the licensing authority may accept alternative

documentation for proof of purposes when there are no bylaws or

articles of incorporation in existence. The term shall also

include nonprofit organizations which are established to promote

and encourage participation and support for extracurricular

activities within the established primary and secondary public,

private and parochial school systems. Such organizations must be

recognized by a resolution adopted by the appropriate governing

body. In the case of organizations associated with the public

school system, the governing body shall be the school board of

the school district. In the case of private or parochial school

organizations, that body shall be either the board of trustees

or the Archdiocese.

"Club."  [A club, as defined in section 102] An organization

that:

(1)  is licensed to sell liquor under section 404 of the

act of April 12, 1951 (P.L.90, No.21), known as the Liquor

Code[, that]; and

(2)  qualifies as an exempt organization under section

501(c) or 527 of the Internal Revenue Code of [1954 (68A

Stat. 3] 1986 (Public Law 99-514, 26 U.S.C. § 501(c) or 527)

[and is licensed to sell liquor at retail and has a

charitable, religious or civic purpose or is organized to

benefit a political party].

"Club licensee."  A club that holds a license to conduct

small games of chance.

"Daily drawing."  A game of chance in which a bona fide

member selects or is assigned a number for a chance at a prize

with the winner determined by [a] random drawing to take place

on the licensed eligible organization's licensed premises during

the same operating day. The term includes games of chance 

commonly known as "member sign-in lotteries" and "half-and-half

lotteries." [Nothing in this act shall be construed to prohibit

the carrying over of a jackpot where the winning number has not

been entered in the game on a particular operating day.] Daily

drawing winners may be determined with the aid of a passive

selection device or reference to drawings conducted by the

department pursuant to the act of August 26, 1971 (P.L.351,

No.91), known as the State Lottery Law. Daily drawing chances

may not be sold for an amount in excess of $1, and no more than

one chance per individual may be sold [to an individual during

the same operating day] per drawing. Nothing in this definition

shall restrict an eligible organization from conducting more

than one drawing per day.

* * *

"Eligible [organizations."  Includes qualifying nonprofit

charitable, religious, fraternal and veterans organizations,

clubs and civic and service associations as defined by this act] 

organization."  A charitable, religious, fraternal or veterans'

organization, club, club licensee or civic and service

association. In order to qualify as an eligible organization for

purposes of this act, an organization shall have been in

existence and fulfilling its purposes for one year prior to the

date of application for a license.

"Fraternal [organizations] organization."  A nonprofit

organization within this Commonwealth which is created and

carried on for the mutual benefit of its members, has a limited

membership and a representative form of government and is a

branch, lodge or chapter of a national or State organization.

Such organizations shall have been in existence in this

Commonwealth and fulfilling their purposes for one year prior to

the date of application for a license.

"Games of chance."  Punchboards, daily drawings, weekly

drawings, raffles 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. This

definition shall not be construed to authorize any other form of

gambling currently prohibited under any provision of Title 18 of

the Pennsylvania Consolidated Statutes (relating to crimes and

offenses) or authorized under 4 Pa.C.S. (relating to

amusements). Nothing in this act shall be construed to authorize

games commonly known as "slot machines" or "video poker."

* * *

"Licensed distributor."  A distributor of games of chance

licensed under section 307.

* * *

"Prize."  Cash or merchandise awarded for games of chance.

"Proceeds."  As follows:

(1)  For games of chance required to be purchased from a

licensed distributor, the difference between:

(i)  the face value, as indicated by the registered

manufacturer, collectible by a licensed eligible

organization from a game of chance; and

(ii)  the maximum amount of prizes available, as

indicated by the registered manufacturer, by a licensed

eligible organization from a game of chance.

(2)  For games of chance not required to be purchased

from a licensed distributor, the difference between:

(i)  the actual gross revenue collected by a licensed

eligible organization from a game of chance; and

(ii)  the actual amount of prizes paid by a licensed

eligible organization from a game of chance.

"Public interest [purposes] purpose."  [One or more of the

following:

(1)  Benefiting persons by enhancing their opportunity

for religious or education advancement, by relieving or

protecting them from disease, suffering or distress, by

contributing to their physical, emotional or social well-

being, by assisting them in establishing themselves in life

as worthy and useful citizens or by increasing their

comprehension of and devotion to the principles upon which

this nation was founded.

(2)  Initiating, performing or fostering worthy public

works or enabling or furthering the erection or maintenance

of public structures.

(3)  Lessening the burdens borne by government or

voluntarily supporting, augmenting or supplementing services

which government would normally render to the people.

(4)  Improving, expanding, maintaining or repairing real

property owned or leased by an eligible organization and used

for purposes specified in paragraphs (1), (2) and (3).

The term does not include the erection or acquisition of any

real property, unless the property will be used exclusively for

one or more of the purposes specified in this definition.] A

nonprofit benevolent, religious, educational, philanthropic,

humane, scientific, patriotic, social welfare, social advocacy,

public health, public safety, environmental or civic objective.

* * *

"Raffle."  A game of chance in which a participant buys a

ticket for a chance at a prize with the winner determined by a

random drawing of corresponding ticket stubs to take place at a

location and date or dates printed upon each ticket. Such games

of chance shall include lotteries but not daily drawings. Raffle

winners may be determined by reference to drawings conducted by

the department pursuant to the act of August 26, 1971 (P.L.351,

No.91), known as the State Lottery Law.

* * *

"Weekly drawing."  A game of chance in which a bona fide

member selects or receives a number or numbers for a chance at a

prize with the winner determined by a random drawing to take

place on the licensed eligible organization's licensed premises

at the end of a seven-day period. [Nothing in this act shall be

construed to prohibit the carrying over of a jackpot where the

winning number has not been entered in the game in a particular

week.] Weekly drawing winners may be determined with the aid of

a passive selection device or reference to drawings conducted by

the Department of Revenue pursuant to the act of August 26, 1971

(P.L.351, No.91), known as the State Lottery Law. Weekly drawing

chances may not be sold for an amount in excess of $1.

Section 4.  The act is amended by adding a chapter heading to

read:

CHAPTER 3

GAMES OF CHANCE

Section 5.  Section 4 of the act, amended December 19, 1990

(P.L.812, No.195), is renumbered and amended to read:

Section [4] 301.  Games of chance permitted.

Every eligible organization to which a license has been

issued under the provisions of this [act] chapter may conduct

games of chance for the purpose of raising funds for public

interest purposes. [All] Except as provided in Chapter 5, all 

proceeds of [games of chance] a licensed eligible organization 

shall be used exclusively for public interest purposes or for

the purchase of games of chance as permitted by this act.

Section 6.  Section 5 of the act, amended December 19, 1990

(P.L.812, No.195) and October 18, 2000 (P.L.602, No.79), is

renumbered and amended to read:

Section [5] 302.  Prize limits.

(a)  Individual prize limit.--[The] Except as provided under

subsections (c) and (d), the maximum [cash value] prize which

may be awarded for any single chance shall be [$500] $1,000.

(b)  [Weekly] Aggregate prize limit.--No more than [$5,000] 

$25,000 in [cash or merchandise] prizes shall be awarded from

games of chance by [any] a licensed eligible organization in any

seven-day period.

(c)  [Limit on raffles] Raffles prize limit.--[No more than

$5,000 in cash or merchandise shall] Subject to the limitations

under subsection (b), up to $10,000 in prizes may be awarded in

raffles in any calendar month.

(c.1)  Total limit.--All prizes awarded under this section

and section 301 shall be subject to the aggregate prize limits

under subsection (b).

(d)  Exception for raffles.--[An] Notwithstanding subsection

(b) or (c), a licensed eligible organization may conduct a

raffle and award a prize or prizes valued in excess of [$500] 

$1,000 each only under the following conditions:

(1)  The licensing authority has issued a special permit

for the raffle under section [11] 308.

(2)  [Eligible organizations] A licensed eligible

organization shall be eligible to receive no more than [two] 

eight special permits in any licensed [year] term except that

a volunteer fire, ambulance [and] or rescue [organizations] 

organization that is not a club licensee shall be eligible to

receive [no more than three] ten special permits in any

licensed [year] term.

(3)  Only one raffle may be conducted under each special

permit issued under section 308.

(4)  [The] Except as provided under paragraph (5), the 

total [cash value] of all prizes awarded under this

subsection shall be no more than [$100,000 per calendar

year.] $200,000 per licensed term.

(5)  A volunteer fire, ambulance or rescue organization

may, in addition to the total under paragraph (4), award up

to $50,000 from raffles which shall not be subject to the

aggregate limit under subsection (b).

[(e)  Limit on daily drawings.--Daily drawings shall be

governed by the prize limitations contained in subsections (a)

and (b). An eligible organization shall not conduct daily

drawings during a period when a weekly drawing is taking place.]

(f)  [Exception] Daily drawing carryover.--The prize

limitation contained in subsections (a) and (b) may be exceeded

by a daily drawing under the following circumstances: a daily

drawing may award a prize [where the cash value is] in excess of

[$500] $1,000 if such prize is the result of a carryover of a

drawing [or drawings] which resulted from the winning number in

such drawing [or drawings] not being among the eligible entrants

in such drawings. Nothing contained herein shall authorize the

prize [limitations] limitation as contained in subsections (a)

and (b) to be exceeded as a result of a failure to conduct a

drawing on an operating day during which chances were sold for a

daily drawing or for a daily drawing for which chances were sold

in excess of $1 or for which more than one chance was sold to an

eligible participant.

(g)  [Daily drawing and weekly drawing] Additional 

exception.--When a daily drawing or weekly drawing is set up or

conducted in such a manner as to pay out or award 100% of the

gross revenues generated from such drawing, the [limitations] 

limitation contained in subsection (b) shall not apply.

(h)  [Limit on weekly drawings] Weekly drawing carryover

exception.--Weekly drawings shall be governed by the prize

[limitations] limitation contained in subsection (b). [The prize

limitation contained in subsection (b) may be exceeded by a

weekly drawing under the following circumstances: a weekly

drawing may award a prize where the cash value is in excess of

$5,000 if such prize is the result of a carryover of a drawing

or drawings which resulted from the winning number or numbers in

such drawing or drawings not being among the eligible entrants

in such drawings.] The portion of a prize awarded in a weekly

drawing that results from the carryover of a weekly drawing in

which the number or numbers were not among the eligible entrants

in the drawing shall not be included when applying the

limitation under subsection (b). Nothing contained in this [act] 

chapter shall authorize the prize [limitations as contained in] 

limitation under subsection (b) to be exceeded as a result of a

failure to conduct a drawing for a week during which chances

were sold for a weekly drawing or for a weekly drawing for which

chances were sold in excess of $1. [An eligible organization

shall not conduct weekly drawings during a period when a daily

drawing is taking place.]

Section 7.  Sections 6 and 7 of the act, amended December 19,

1990 (P.L.812, No.195), are renumbered and amended to read:

Section [6] 303.  Sales limited.

(a)  General rule.--No person shall sell, offer for sale or

furnish games of chance for use within this Commonwealth except

to an eligible organization or [distributor] licensed

distributor under this [act] chapter.

(b)  Organizations.--No game of chance, other than a raffle

under section 302(d), sold, offered for sale or furnished to a

licensed eligible organization for use within this Commonwealth

shall contain, permit, depict or designate a prize having a

[cash value] prize limit in excess of [$500] $1,000.

Section [7] 304.  Distributor licenses.

(a)  License required.--No person shall sell, offer for sale

or furnish games of chance to eligible organizations licensed

under this [act] chapter unless such person shall have obtained

a distributor license as provided in this section.

(b)  Application.--An applicant for the grant or renewal of a

distributor license issued pursuant to this section shall

provide to the department, upon the form prescribed, all of the

following:

(1)  The applicant's State sales tax number.

(2)  The applicant's State corporate tax number.

(3)  The applicant's State employer withholding tax

number.

(4)  The applicant's unemployment compensation account

number.

(5)  A statement that:

(i)  all State tax reports have been filed and all

State taxes paid;

(ii)  all State taxes are subject to a timely

administrative or judicial appeal; or

(iii)  all State taxes are subject to a duly approved

deferred payment plan.

(6)  The names and business addresses of all owners,

officers, directors, partners and sales personnel.

(c)  Waiver of confidentiality.--An applicant for the grant

or renewal of any license issued pursuant to this section shall,

by the filing of an application insofar as it relates to the

department, waive any confidentiality with respect to State tax

information in the possession of the department, the Office of

Attorney General or the Department of Labor and Industry

regarding that applicant, regardless of the source of that

information, and shall consent to the providing of that

information to the department by the Office of Attorney General

or the Department of Labor and Industry.

(d)  Review of tax status.--Upon receipt of any application

for the grant or renewal of any license issued pursuant to this

section, the department shall review the State tax status of the

applicant. The department shall request State tax information

regarding the applicant from the Office of Attorney General or

the Department of Labor and Industry and that information shall

be provided.

(e)  Limitation on approval.--The department shall not

approve any application for the grant or renewal of any license

issued pursuant to this section where the applicant has failed

to:

(1)  provide any of the information required by

subsection (b);

(2)  file required State tax reports; or

(3)  pay any State taxes not subject to a timely

administrative or judicial appeal or subject to a duly

authorized deferred payment plan.

(f)  Records.--The licensee shall keep such records, reports

and books as the department shall prescribe. Applicants shall be

required to make such records, reports and books available as

required by the department pursuant to regulation.

(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 in a state or Federal

court within the past five years; or

(2)  has been convicted within ten years of the date of

application in a state or Federal court of a violation of the

act of July 10, 1981 (P.L.214, No.67), known as the Bingo

Law, or of this act or of a gambling-related offense under

Title 18 of the Pennsylvania Consolidated Statutes (relating

to crimes and offenses) or other comparable State or Federal

law.

(h)  License and renewal fees.--The fee for a distributor

license shall be $1,000. Licenses shall be renewable on an

annual basis.

(i)  Exception.--This section shall not apply to the

manufacture or distribution of raffle tickets.

Section 8.  Section 8 of the act is renumbered to read:

Section [8] 305.  Registration of manufacturers.

(a)  Registration required.--No manufacturer of games of

chance shall sell any games of chance to any person unless the

manufacturer has registered with the department and has been

issued a certificate of registration.

(b)  Annual certificate; fee.--A certificate under this

section shall be valid for one year. The annual fee for

registration shall be $2,000.

(c)  Prohibited sales.--A manufacturer shall not sell games

of chance to any person not licensed as a distributor unless the

manufacturer is also a licensed distributor.

(d)  Exception.--This section shall not apply to the

manufacture or distribution of raffle tickets.

Section 9.  Section 9 of the act, amended December 19, 1990

(P.L.812, No.195), is renumbered and amended to read:

Section [9] 306.  Regulations of department.

(a)  Authorization.--The department shall promulgate

regulations to:

(1)  Impose minimum standards and restrictions applicable

to games of chance manufactured for sale in this

Commonwealth, which may include standards and restrictions

which specify the maximum number of chances available to be

sold for any single game of chance or prize and such other

standards and restrictions as the department deems necessary

for the purposes of this [act] chapter. The department shall

consider standards adopted by the National Association of

Gambling Regulatory Agencies and other standards commonly

accepted in the industry.

(2)  Establish procedures by which manufacturers may

register and distributors of games of chance may apply for

licensure on forms which the department shall provide.

Procedures shall include a requirement that manufacturer and

distributor applicants provide criminal history record

information obtained from the Pennsylvania State Police under

18 Pa.C.S. § 9121(b) (relating to general regulations) for

each officer and manager of the manufacturer's or

distributor's organization and for any other individual

specified by the department. As used in this paragraph, the

term "criminal history record information" has the meaning

given in 18 Pa.C.S. § 9102 (relating to definitions).

(3)  Provide for the suspension or revocation of

distribution licenses or manufacturer certificates for

violations of this act or regulations of the department.

(4)  Carry out other provisions of this act.

(b)  Limitation on recordkeeping requirements.--This section

shall not be construed to authorize the department to promulgate

regulations providing for recordkeeping requirements for

licensed eligible organizations which require unreasonable or

unnecessary information or a repetitious listing of information.

The department shall strive to keep such recordkeeping

requirements from being an undue hardship or burden on licensed 

eligible organizations. Under no circumstances shall the

department require the retention of records for a period in

excess of two years.

(c)  Reporting requirements.--Each eligible organization

shall file an annual report to the department including:

(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)  Amounts expended for public interest purposes.

Section 10.  Section 10 of the act, amended December 19, 1990

(P.L.812, No.195) and October 18, 2000 (P.L.602, No.79), is

renumbered and amended to read:

Section [10] 307.  Licensing of eligible organizations to

conduct games of chance.

(a)  License required.--No eligible organization shall

conduct or operate any games of chance unless such eligible

organization has obtained and maintains a valid license or

limited occasion license issued pursuant to this section.

[Auxiliary groups within] An auxiliary group of a licensed 

eligible [organizations] organization shall be eligible to

conduct [small] games of chance using the license issued to the

eligible organization provided that the auxiliary group or

groups are listed on the application and license of the eligible

organization. An auxiliary group is not eligible to obtain a

license or a limited occasion license. No additional licensing

fee shall be charged for an auxiliary group's eligibility under

this [act] chapter. Auxiliary groups shall not include branches,

lodges or chapters of a Statewide organization.

(b)  Issuance and fees.--The licensing authority shall

license, upon application, within 30 days any eligible

organization meeting the requirements for licensure contained in

this [act] chapter to conduct and operate games of chance at

such locations within the county or in such manner as stated on

the application as limited by subsection (b.1). The license fee

to be charged to each eligible organization shall be [$100] 

$200, except for limited occasion licenses which shall be [$10] 

$20. Licenses shall be renewable [annually] on a biennial basis 

upon the anniversary of the date of issue. The license fee shall

be used by the licensing authority to administer this act.

(b.1)  Location of [small] games of chance.--

(1)  Every licensed eligible organization, except a

limited occasion licensee, may conduct small games of chance

only at a licensed premises. The licensed premises shall be

indicated on the eligible organization's license application.

Only one license shall be issued per licensed premises.

Except as provided under paragraph (4), a licensed eligible

organization may not share a licensed premises with another

licensed eligible organization; and no licensed eligible

organization may permit its premises to be used for small

games of chance by another licensed eligible organization.

(2)  Where there exists a location or premises which is

the normal business or operating site of the eligible

organization and the location or premises is owned or leased

by that eligible organization to conduct its normal business,

that site shall be the eligible organization's licensed

premises [for small games of chance conducted by the eligible

organization]. If that location consists of more than one

building [and the eligible organization wishes to conduct its

games in a different building at that location from the one

that is listed on its application and license, the eligible

organization must notify, in writing, the district attorney

and the licensing authority of the change in building site

and the dates and times that will be affected], the eligible

organization shall choose the building that will be the

licensed premises.

(3)  When an eligible organization does not own or lease

a specific location to conduct its normal business, [that] 

the eligible organization [may use another eligible

organization's premises to conduct its games or] may make

[such other] arrangements that are consistent with this act

to establish a licensed premises, including[, but not limited

to,] leasing a premise under a written agreement for a rental

[which is not]; however, the rental may not be determined by

either the amount of receipts realized from the [playing] 

conduct of games of chance [nor] or the number of people

attending [except that an]. An eligible organization may

lease a facility for a banquet [where a per head charge is

applied] in connection with the serving of a meal based on a

per-head charge. [When such eligible organization changes the

site of its games from that which is listed on its

application and license, the eligible organization must

notify, in writing, the district attorney and licensing

authority of the change in their games' site and dates and

times that will be affected.]

(4)  An eligible organization that has obtained a limited

occasion license under subsection (b.3) may use another

eligible organization's licensed premises to conduct its

games of chance. When a licensed eligible organization is

permitting a limited occasion licensee to use its licensed

premises for purposes of games of chance, it shall cease the

operation of its own games of chance during the period that

the limited occasion licensee is conducting its games on the

premises.

(b.2)  Off-premises games of chance.--Notwithstanding any

other provisions of this section, [an] all of the following

apply:

(1)  A licensed eligible organization may conduct [small] 

games of chance at a location off its premises when [such

games] the games of chance are part of an annual carnival,

fair, picnic or banquet held or participated in by that

licensed eligible organization on a historical basis. The

licensed eligible organization must notify, in writing, the

district attorney and licensing authority of the location,

date and times of [such events] the event where it will be

conducting [small] games of chance.

(2)  Raffle tickets may be sold off the licensed premises

in a municipality which has adopted the provisions of this

act by an affirmative vote in a municipal referendum. A

licensed eligible organization which plans to sell raffle

tickets in a municipality located in a county other than the

county in which the eligible organization is licensed shall

notify that county's district attorney and licensing

authority as to the location and the dates that the licensed

eligible organization plans to sell raffle tickets.

(b.3)  Limited occasion licenses.--Eligible organizations

which do not own their own premises or which do not lease a

specific location to conduct their normal business may apply for

a limited occasion license to conduct [small] games of chance on

not more than three occasions covering a total of seven days

during a licensed year. A limited occasion license entitles an 

eligible [organizations holding such a license] organization to

conduct no more than two raffles during a licensed year where

prizes may not exceed the established limits for regular monthly

raffles. Holders of a limited occasion [licenses] license may

not apply or be granted any other license or special permit

under this act. No holder of a regular license or special permit

under this act shall apply or be granted a limited occasion

license.

(b.4)  Gambling facility prohibited.--It shall be unlawful

for a person, corporation, association, partnership or other

business entity to offer for rent or offer for use a building or

facility to be used exclusively for the [conducting] conduct of

[small] games of chance. It shall also be unlawful for any

eligible organization to rent or lease under any terms a

[facility or] building or facility which is used exclusively for

the [conducting] conduct of [small] games of chance.

(c)  Display.--Licenses issued pursuant to this section shall

be publicly displayed at the site [of the small] where games of

chance will be conducted.

(d)  Operation.--Each licensed eligible organization shall

[comply with the following restrictions and rules governing the

operation of games of chance] be prohibited from the following:

(1)  [No] Permitting any person under 18 years of age

[shall be permitted] to operate or play games of chance.

(2)  [No eligible organization shall permit] Permitting 

any person who has been convicted of a felony in a Federal or

State court within the past five years or has been convicted

in a Federal or State court within the past ten years of a

violation of the act of July 10, 1981 (P.L.214, No.67), known

as the Bingo Law, or of this act to manage, set up, supervise

or participate in the operation of games of chance.

(3)  [No eligible organization shall pay] Paying any

compensation to any person for conducting any games of

chance. Games of chance may only be conducted by managers,

officers, directors, bar personnel and bona fide members of

the eligible organization.

(4)  [Games shall be conducted only] Conducting games of

chance on any premises other than on the licensed premises or

as otherwise provided by this [act] chapter.

(5)  [The eligible organization shall not lease such] 

Leasing the licensed premises under either an oral or a

written agreement for a rental which is determined by either

the amount of receipts realized from the playing of games of

chance or the number of people attending, except that an

eligible organization may lease a facility for a banquet

where a per head charge is applied in connection with the

serving of a meal. An eligible organization shall not lease

such premises from any person who has been convicted of a

violation of this act or the Bingo Law within the past ten

years.

(6)  [Games] Purchasing games of chance, other than

raffles, daily drawings and weekly drawings, [shall be

purchased only from manufacturers and distributors] from any

person other than a registered manufacturer or licensed

distributor approved by the department.

[(7)  No licensed eligible organization shall permit its

premises to be used for small games of chance by another

licensed eligible organization at the same time that it is

conducting small games of chance on the premises. When a

licensed eligible organization is permitting another licensed

eligible organization to use its premises for purposes of

small games of chance, it must cease the operation of its own

small games of chance during the period that the other

licensed eligible organization is conducting its games on the

premises.

(8)  Raffle tickets may be sold off the licensed premise

in any municipality in this Commonwealth which has adopted

the provisions of this act by an affirmative vote in a

municipal referendum. A licensed eligible organization which

plans to sell raffle tickets in a municipality located in a

county other than the county in which the eligible

organization is licensed must notify that county's district

attorney and licensing authority as to the location and the

dates that the eligible organization plans to sell raffle

tickets.]

(d.1)  Bank account and records.--The licensed eligible

organization shall keep a bank account to hold the proceeds of

games of chance, which shall be separate from all other funds

belonging to the licensed eligible organization. Account records

shall show all expenditures and income and shall be retained by

the licensed eligible organization for at least two years.

(e)  Application for license.--Each eligible organization

shall apply to the licensing authority for a license on a form

to be prescribed by the Secretary of Revenue. For a club

license, the application shall include the most recent annual

report filed by the club licensee under Chapter 5. The form

shall contain an affidavit to be affirmed by the executive

officer or secretary of the eligible organization stating that:

(1)  No person under 18 years of age will be permitted by

the eligible organization to operate or play games of chance.

(2)  The facility in which the games of chance are to be

played has adequate means of ingress and egress and adequate

sanitary facilities available in the area.

(3)  The eligible organization is not leasing such

premises from the owner thereof under an oral agreement, nor

is it leasing such premises from the owner thereof under a

written agreement at a rental which is determined by the

amount of receipts realized from the playing of games of

chance or by the number of people attending, except that an

eligible organization may lease a facility for a banquet

where a per head charge is applied in connection with the

serving of a meal.

(e.1)  Proceedings.--Proceedings before the licensing

authority are subject to 2 Pa.C.S. Chs. 5 Subch. B (relating to

practice and procedure of local agencies) and 7 Subch. B

(relating to judicial review of local agency action).

(f)  List of licensees.--The licensing authority, on a

semiannual basis, shall send a copy of all licensees to the

Department of Revenue.

(g)  List of municipalities.--The licensing authority shall

include with any license or renewal license issued to an

eligible organization, an up-to-date listing of those

municipalities within the licensing county which have approved

the referendum question on small games of chance.

(h)  Background checks.--Each application for a license shall

include the results of a criminal history record information

check obtained from the Pennsylvania State Police, as defined in

18 Pa.C.S. § 9102 (relating to definitions) and permitted by 18

Pa.C.S. § 9121(b) (relating to general regulations), for the

executive officer and secretary of the eligible organization

making the application for a license or any other person

required by the department.

Section 11.  Section 11 of the act, amended December 19, 1990

(P.L.812, No.195), is renumbered and amended to read:

Section [11] 308.  Special permits.

(a)  Issuance and fee.--The licensing authority shall issue a

special permit for each raffle in which the [licensee] licensed

eligible organization proposes to award individual prizes

[having a cash value] in excess of [$500] $1,000. The licensing

authority may establish and collect a fee not to exceed $25 for

the issuance of special permits under this section.

(b)  Permit application.--Each special permit application

shall specify the location where the actual drawing will be

held, the number of chances to be sold, the price per chance and

the [cash value of the prize or prizes] prize to be awarded.

Section 12.  The act is amended by adding a chapter to read:

CHAPTER 5

CLUB LICENSEES

Section 501.  Club licensee.

(a)  Report.--

(1)  Beginning in 2013, the club licensee shall submit

semi-annual reports to the department for the preceding six-

month period on a form and in a manner prescribed by the

department.

(2)  The report must be filed under oath or affirmation

of an authorized officer of the club licensee.

(3)  The report shall include all of the following

information:

(i)  The proceeds received by the club licensee from

each game of chance conducted, itemized by week.

(ii)  The amount of prizes paid from all games of

chance, itemized by week.

(iii)  The amount of proceeds for all games of chance

not purchased from a licensed distributor operated in the

prior calendar year.

(iv)  Other costs incurred related to the conduct of

games of chance.

(v)  The verification of amounts distributed for

public interest purposes itemized under section

502(a)(1), itemized by the recipient.

(vi)  An itemized list of expenditures made or

amounts retained and expenditures under section

502(a)(3).

(vii)  The address and the county in which the club

licensee is located.

(viii)  Other information or documentation required

by the department.

(b)  Distribution.--The department shall provide a copy of

the report to the Bureau of Liquor Control Enforcement.

(c)  Posting.--The reports under subsection (a) shall be

published on the department's Internet website.

Section 502.  Distribution of proceeds.

(a)  Distribution.--The proceeds from games of chance

received by a club licensee shall be distributed as follows:

(1)  No less than 70% of the proceeds shall be paid to

organizations other than the club licensee for public

interest purposes in the calendar year in which the proceeds

were obtained.

(2)  No more than 30% of the proceeds obtained in a

calendar year may be retained by a club licensee and used for

the following expenses relating to the real property of the

club licensee:

(i)  Real property taxes.

(ii)  Utility and fuel costs.

(iii)  Heating and air conditioning equipment or

repair costs.

(iv)  Water and sewer costs.

(v)  Property or liability insurance costs.

(vi)  Mortgage payments.

(vii)  Interior and exterior repair costs, including

repair to parking lots.

(viii)  New facility construction costs.

(ix)  Entertainment equipment, including television,

video and electronic games.

(a.1)  Amounts retained.--Amounts retained by a club licensee

under subsection (a)(2) shall be expended within the same