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

SENATE AMENDMENTS TO HOUSE AMENDMENTS, OCTOBER 1, 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  

definitions; providing for relationship to table games;

further providing for games of chance permitted; providing

for 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.

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

definitions and for games of chance permitted; providing for

major league sports drawing; further providing for

registration of manufacturers, for regulations and for

licensing of eligible organizations to conduct games of

chance; providing for applicability; and further providing

for distribution of proceeds and for enforcement.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

Section 1.  The definition of "games of chance" in section

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103 of the act of December 19, 1988 (P.L.1262, No.156), known as

the Local Option Small Games of Chance Act, renumbered and

amended February 2, 2012 (P.L.7, No.2), is amended and the

section is amended by adding definitions to read:

Section 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:

"50/50 drawing."  A game in which:

(1)  A participant buys a ticket for a chance at a prize

with the winner or winners determined by a random drawing of

a corresponding ticket.

(2)  The prize paid to the winner or winners is comprised

of one-half of the proceeds from the game and the remaining

proceeds retained by the eligible organization.

"A night at the races."  A game in which a participant places

a wager on a prerecorded horse race.

* * *

"Coin auction."  A game in which a participant buys a

numbered paddle for a chance to bid on a donated prize with the

winner determined by a random drawing of corresponding numbers.

* * *

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

drawings, 50/50 drawings, raffles, selective raffles, coin

auctions, a night at the races, Major League Baseball, National

Hockey League or National Basketball Association 50/50 raffles,

vertical wheel games and pull-tabs, as defined in this act,

provided that, except for vertical wheel games, 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."

* * *

"Major League Baseball, National Hockey League or National

Basketball Association 50/50 raffle."  A game of chance

conducted by a Major League Baseball, National Hockey League or

National Basketball Association team that is affiliated with a

nonprofit organization at a home game in which 50% of the money

taken in by raffle ticket sales is offered as the prize and the

remaining 50% is retained by the affiliated nonprofit

organization sponsoring the raffle.

* * *

"Selective raffle."  A game in which a participant buys a

ticket or tickets for a chance to win a donated prize. The

participant places his or her ticket or tickets in a designated

location for the prize which he or she would like to win. The

winner for each prize is determined by a random drawing of

tickets with a corresponding number for the prize.

"Vertical wheel game."  A game in which a participant places

a coin or token on a color, number or word or purchases a ticket

containing a color, number or word and watches a spinning

vertical wheel until the pointer of the wheel rests on a section

of the wheel designating a winner.

* * *

Section 1.1.  The act is amended by adding a section to read:

Section 104.  Relationship to table games.

A vertical wheel game is not a "table game" as defined in 4

Pa.C.S. § 1103 (relating to definitions). The designation of a

vertical wheel game under this act does not preclude the

authorization of a vertical wheel game as a table game under 4

Pa.C.S. Pt. II (relating to gaming).

Section 2.  Section 301 of the act, renumbered and amended

February 2, 2012 (P.L.7, No.2), is amended to read:

Section 301.  Games of chance permitted.

Every eligible organization to which a license has been

issued under the provisions of this chapter may conduct games of

chance for the purpose of raising funds for public interest

purposes. Except as provided in Chapter 5, all proceeds of a

licensed eligible organization shall be used exclusively for

public interest purposes [or], for the purchase of games of

chance [as permitted], for the payment of the license fee or for

the payment of the fee for background checks, as required by

this act. An eligible organization, except a club licensee, may

use its proceeds from games of chance to fulfill its own public

interest purpose.

Section 3.  The act is amended by adding a section to read:

Section 302.1.  Major League Baseball, National Hockey League or

National Basketball Association 50/50 raffle.

(a)  General rule.--A person may purchase one or more Major

League Baseball, National Hockey League or National Basketball

Association 50/50 raffle tickets, and each ticket purchased

shall represent one entry in the drawing for a winner. A single

Major League Baseball, National Hockey League or National

Basketball Association 50/50 raffle ticket shall be randomly

chosen as the winner after a certain number of tickets are sold

or a specified time period expires as designated by the

charitable organization conducting the Major League Baseball,

National Hockey League or National Basketball Association 50/50

raffle.

(b)  Frequency.--A Major League Baseball, National Hockey

League or National Basketball Association team may conduct no

more than one Major League Baseball, National Hockey League or

National Basketball Association 50/50 raffle per home game.

(b.1)  Sales restricted.--Tickets for the Major League

Baseball, National Hockey League or National Basketball

Association 50/50 raffle may not be sold in any seating area

designated by the Major League Baseball, National Hockey League

or National Basketball Association team as a family section.

(c)  Distribution of money collected.--The prize amount for a

Major League Baseball, National Hockey League or National

Basketball Association 50/50 raffle shall be 50% of the total

money collected from the sale of Major League Baseball, National

Hockey League or National Basketball Association 50/50 raffle

tickets. The other 50% of the total money collected from the

sale of Major League Baseball, National Hockey League or

National Basketball Association 50/50 raffle tickets shall be

donated within seven days from the date of the raffle by the

charitable organization conducting the Major League Baseball,

National Hockey League or National Basketball Association 50/50

raffle to the designated charitable organization for which the

raffle was conducted.

(d)  Designated charitable organization.--The charitable

organization conducting the Major League Baseball, National

Hockey League or National Basketball Association 50/50 raffle

shall disclose to the raffle ticket purchasers the designated

charitable organization for which the Major League Baseball,

National Hockey League or National Basketball Association 50/50

raffle is being conducted.

(e)  Unclaimed prizes.--Any Major League Baseball, National

Hockey League or National Basketball Association 50/50 raffle

prize remaining unclaimed by the winner at the end of the Major

League Baseball, National Hockey League or National Basketball

Association team's season shall be donated within 30 days from

the end of the season by the charitable organization conducting

the Major League Baseball, National Hockey League or National

Basketball Association 50/50 raffle to the designated charitable

organization for which the 50/50 raffle was conducted.

(f)  Applicability of other sections.--The limitations under

sections 302, 308 and 704 shall not apply to a Major League

Baseball, National Hockey League or National Basketball

Association 50/50 raffle.

Section 4.  Sections 306 and 307(b.1), (d) and (h) of the

act, renumbered and amended February 2, 2012 (P.L.7, No.2), are

amended to read:

Section 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 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. Except as provided under section 701(b), 

the department may not require the retention of records for a

period in excess of two years.

(c)  Reporting requirements.--Each eligible organization

which has proceeds in excess of $2,500 in a single calendar year 

shall submit 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 307.  Licensing of eligible organizations to conduct

games of chance.

* * *

(b.1)  Location of games of chance.--

(1)  [Every] Except as otherwise provided in this

section, a 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. If that location consists of more than one

building, the eligible organization shall [choose] identify 

the building that will be designated as the licensed

premises.

(2.1)  If an eligible organization wishes to conduct

games of chance in a different location from the one that is

listed on its application and license, the eligible

organization must submit a written request to the district

attorney. The request must include the change in the location

and the dates and times the games of chance will be operated

at the new location. The district attorney may approve the

request, deny the request or stipulate additional

requirements as a condition of approval.

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

a specific location to conduct its normal business, the 

eligible organization may use the premises of another

eligible organization to conduct games of chance or may make

arrangements that are consistent with this act to establish a

licensed premises, including leasing a premise under a

written agreement for a rental; however, the rental may not

be determined by either the amount of receipts realized from

the conduct of games of chance or the number of people

attending. An eligible organization may lease a facility for

a banquet in connection with the serving of a meal based on a

per-head charge. Prior to the use of the premises of another

eligible organization to conduct games of chance, an eligible

organization must notify, in writing, the district attorney

regarding the location of the premises and the dates and

times the games of chance will be operated. When an eligible

organization permits another eligible organization 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 other eligible organization is conducting its

games on the premises.

(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.

* * *

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

prohibited from the following:

(1)  Permitting any person under 18 years of age to

operate or play games of chance.

(2)  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)  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)  Conducting games of chance on any premises other

than on the licensed premises or as otherwise provided by

this chapter.

(5)  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)  Purchasing games of chance, other than raffles,

daily drawings and weekly drawings, from any person other

than a registered manufacturer or licensed distributor 

approved by the department.

(7)  (Reserved).

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

as follows:

(i)  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 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.

(ii)  In a licensed "eating place," "restaurant" or

"retail dispenser," as defined in section 102 of the act

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

Code. A licensed eligible organization which plans to

sell raffle tickets at a licensed eating place,

restaurant or retail dispenser must notify the county's

district attorney and licensing authority as to the

location of the eating place, restaurant or retail

dispenser and the dates that the eligible organization

plans to sell raffle tickets at the club.

* * *

(h)  Background checks.--[Each]

(1)  Except as set forth in paragraph (2), 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.

(2)  Paragraph (1) does not apply as follows:

(i)  An application submitted by an eligible

organization that is not a club, shall not be required to

include the results of a criminal history record

information check if the application includes an

affidavit executed by the eligible organization's

executive officer affirming that, if granted a license,

the eligible organization does not anticipate that the

organization's total small games of chance revenue will

exceed $2,500 during the period for which the license is

valid. The department shall prescribe an affidavit form

for this purpose and make the form available to licensing

authorities.

(ii)  If, following the issuance of a license to an

eligible organization under subparagraph (i), the

eligible organization's total small games of chance

revenue receipts surpass $2,500 during the period for

which the license was valid, the eligible organization

shall:

(A)  within 180 days of surpassing the specified

amount, provide the issuing authority with the

results of a criminal history record information

check for its executive officer and secretary which

meets the requirements of paragraph (1); and

(B)  when it next applies for licensure, comply

with paragraph (1).

Section 5.  Section 502 of the act, added February 2, 2012

(P.L.7, No.2), is amended to read:

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 for public interest purposes in the calendar

year in which the proceeds were obtained. This paragraph

includes charity events, scholarship programs and other

philanthropic events:

(i)  held by the club on its licensed premises; and

(ii)  available to club members, club member families

or the general public.

(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 operational expenses relating to 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.

(x)  Other expenses adopted in regulation by the

department.

(xi)  License fees as required under this act.

(xii)  Background check fees as required under this

act.

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

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

calendar year unless the club licensee notifies the department

that funds are being retained for a substantial purchase or

project. Notification shall include a description of the

purchase or project, the cost and the anticipated date of the

purchase or project.

(b)  Prohibition.--

(1)  Proceeds shall not be used for wages, alcohol or

food purchases or for the payment of any fine levied against

the club licensee.

(2)  An officer or employee of a club licensee who

operates the game of chance shall not participate in the

game. This paragraph shall not apply to a raffle.

Section 6.  This act shall take effect in 60 days.

Section 1.  The definitions of "eligible organization" and

<--

"games of chance" in section 103 of the act of December 19, 1988

(P.L.1262, No.156), known as the Local Option Small Games of

Chance Act, renumbered and amended February 2, 2012 (P.L.7,

No.2), are amended and the section is amended by adding

definitions to read:

Section 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:

"50/50 drawing."  A game in which:

(1)  A participant buys a ticket for a chance to win a

prize where the winner is determined by a random drawing of

corresponding tickets sold for that drawing.

(2)  The prize paid to the winner is comprised of one-

half of the money collected from tickets from the drawing and

the remaining money retained by the eligible organization for

distribution in accordance with this act.

"Affiliated nonprofit organization."  An organization

established by or affiliated with a Major League Baseball,

National Hockey League, National Basketball Association or Major

League Soccer team for the purpose of raising funds for charity,

which is qualified for an exemption under section 501(c)(3) of

the Internal Revenue Code of 1986 (Public Law 99-514, 26 U.S.C.

§ 101(c)(3).

* * *

"Eligible 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. The term shall

include an affiliated nonprofit organization licensed under

section 307.

* * *

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

drawings, 50/50 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."

* * *

"Major league sports drawing."  A 50/50 drawing conducted by

an affiliated nonprofit organization at a home game of a major

league sports team in which 50% of the money collected from

ticket sales from the drawing are offered as the prize and the

remaining 50% is retained by the affiliated nonprofit

organization sponsoring the drawing for distribution to

charitable organizations.

"Major league sports team."  A professional team that is a

member of Major League Baseball, the National Hockey League, the

National Basketball Association or Major League Soccer.

* * *

Section 2.  Section 301 of the act, renumbered and amended

February 2, 2012 (P.L.7, No.2), is amended to read:

Section 301.  Games of chance permitted.

Every eligible organization to which a license has been

issued under the provisions of this chapter may conduct games of

chance for the purpose of raising funds for public interest

purposes. Except as provided in Chapter 5, all proceeds of a

licensed eligible organization shall be used exclusively for

public interest purposes [or], for the purchase of games of

chance [as permitted], for the payment of the license fee or for

the payment of the fee for background checks, as required by

this act.

Section 3.  The act is amended by adding a section to read:

Section 304.1.  Major league sports drawing.

(a)  General rule.--A person may purchase one or more major

league sports drawing tickets at a home game, and each ticket

purchased shall represent one entry in the drawing for a winner.

A single ticket shall be randomly chosen as the winner after a

certain number of tickets are sold or a specified time period

expires as designated by the affiliated nonprofit organization.

(b)  Frequency.--An affiliated nonprofit organization may

conduct no more than one major league sports drawing per home

game.

(b.1)  Sales restricted.--Tickets for a major league sports

drawing may not be sold in any seating area designated as a

family section.

(c)  Distribution.--The prize amount of a major league sports

drawing shall be 50% of the total amount collected from the sale

of major league sports drawing tickets. The other 50% of the

total amount collected from the sale of major league sports

drawing tickets shall be donated within seven days from the date

of the drawing by the affiliated nonprofit organization

conducting the major league sports drawing to a designated

charitable organization for which the drawing was conducted.

(d)  Designated charitable organization.--The affiliated

nonprofit organization conducting the major league sports

drawing shall disclose to all ticket purchasers the designated

charitable organization for which the major league sports

drawing is being conducted.

(e)  Eligibility.--In order to receive proceeds from a major

league sports drawing, a charitable organization must be in

existence and fulfilling its purposes for at least two years

prior to the drawing and shall be eligible for exemption under

section 501(c)(3) of the Internal Revenue Code of 1986 (Public

Law 99-514, 26 U.S.C. § 501(c)(3)). A political subdivision

shall not qualify as a charitable organization under this

section.

(f)  Unclaimed prizes.--Any major league baseball sports

drawing prize remaining unclaimed by a winner at the end of the

major league sports team's season shall be donated within 30

days from the end of the season by the affiliated nonprofit

organization to the designated charitable organization for which

the major league sports drawing was conducted.

(g)  Applicability.--The limitations under sections 302,

303(b), 308 and 704 shall not apply to a major league sports

drawing.

Section 4.  Sections 305, 306 and 307(b.1), (d)(6) and (h) of

the act, renumbered and amended February 2, 2012 (P.L.7, No.2),

are amended to read:

Section 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, 50/50 drawings,

daily drawings or weekly drawings.

Section 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 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. Except as provided under section 701(b), 

the department may not require the retention of records for a

period in excess of two years.

(c)  Reporting requirements.--Each eligible organization

which has proceeds in excess of $2,500 in a calendar year shall

submit 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 307.  Licensing of eligible organizations to conduct

games of chance.

* * *

(b.1)  Location of games of chance.--

(1)  [Every] Except as otherwise provided in this

section, a 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. If that location consists of more than one

building, the eligible organization shall [choose] identify 

the building that will be designated as the licensed

premises.

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

a specific location to conduct its normal business, the 

eligible organization may make arrangements that are

consistent with this act to establish a licensed premises,

including leasing a premise under a written agreement for a

rental; however, the rental may not be determined by either

the amount of receipts realized from the conduct of games of

chance or the number of people attending. An eligible

organization may lease a facility for a banquet in connection

with the serving of a meal based on a per-head charge.

(3.1)  Notwithstanding paragraphs (1), (2) and (3), if an

eligible organization is unable to conduct games of chance at

the location listed on its application and license due to

natural disaster, fire or other circumstance that renders the

location unusable, the eligible organization may submit a

written request to the district attorney to conduct games of

chance in a different location, including the licensed

premises of another eligible organization. The request must

include the change in the location and the dates and times

the games of chance will be operated at the alternative

location. The district attorney shall establish a limit on

the duration of the authorization to conduct games of chance

at the alternative location. Following the expiration of the

authorization period, the eligible organization must return

to the location specified in its application and license or

apply to the licensing authority for a new permanent location

for the conduct of games of chance. The district attorney may

approve or deny the request or stipulate additional

requirements as a condition of approval. If an eligible

organization permits another eligible organization to use its

licensed premises to conduct games of chance under this

paragraph, the eligible organization shall cease its

operation of games of chance during the time the eligible

organization utilizing its premises is conducting its games

of chance.

(3.2)  Notwithstanding paragraphs (1), (2) and (3), the

following eligible organizations established to raise funds

shall not be required to conduct a 50/50 drawing or a raffle

at a licensed premises or to own, lease or establish a

licensed premises:

(i)  A nonprofit sports team.

(ii)  A primary or secondary school-sponsored club,

sports team or organization.

(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.

(5)  For purposes of major league sports drawings, the

facility at which a major league sports team conducts its

games shall constitute a premises for purposes of this act.

* * *

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

prohibited from the following:

* * *

(6)  Purchasing games of chance, other than raffles,

50/50 drawings, daily drawings and weekly drawings, from any

person other than a registered manufacturer or licensed

distributor approved by the department.

* * *

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

submitted by an eligible organization which has proceeds in

excess of $2,500 in a year 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 5.  The act is amended by adding a section to read:

Section 506.  Applicability.

This chapter shall only apply to eligible organizations that

have a club license.

Section 6.  Section 702(b) of the act, amended February 2,

2012 (P.L.7, No.2), is amended to read:

Section 702.  Enforcement.

* * *

(b)  Bureau of Liquor Control Enforcement.--If the licensee

is a club licensee, the Bureau of Liquor Control Enforcement may

enforce the provisions of this act in accordance with subsection

(g). An administrative law judge under section 212 of the act of

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

impose the penalties under subsection (d) following the issuance

of a citation by the bureau.

* * *

Section 7.  This act shall take effect in 60 days.