1Amending the act of December 19, 1988 (P.L.1262, No.156), 
2entitled, as amended, "An act providing for the licensing of 
3eligible organizations to conduct games of chance, for the 
4licensing of persons to distribute games of chance, for the 
5registration of manufacturers of games of chance, and for 
6suspensions and revocations of licenses and permits; 
7requiring records; providing for local referendum by 
8electorate; and prescribing penalties," further providing for 
9definitions and for games of chance permitted; providing for 
10prohibition regarding pools; further providing for prize 
11limits and for limited sales; providing for raffle sales; 
12further providing for distributor licenses, for registration 
13of manufacturers, for regulations of department, for 
14licensing of eligible organizations to conduct games of 
15chance, for special permits<-, <-and for revocation of licenses 
<-16and;<- providing for affiliated clubs; further providing for 
17enforcement; and providing for pool selling.

18The General Assembly of the Commonwealth of Pennsylvania
19hereby enacts as follows:

20Section 1. The definitions of "daily drawing," "games of

1chance," "raffle," "public interest <-purpose" and <-purpose,"
2"weekly drawing" <-and "veterans organization" in section 103 of
3the act of December 19, 1988 (P.L.1262, No.156), known as the
4Local Option Small Games of Chance Act, amended or added
5February 2, 2012 (P.L.7, No.2) and October 24, 2012 (P.L.1462, 
6No.184), are amended and the section is amended by adding
7definitions to read:

8Section 103. Definitions.

9The following words and phrases when used in this act shall
10have the meanings given to them in this section unless the
11context clearly indicates otherwise:

12* * *

13"Auxiliary group." The term shall not include a branch,
14lodge or chapter of a Statewide organization.

15* * *

16"Conservation organization." A national or Statewide
17nonprofit organization or local federation, club or chapter of a
18national or Statewide nonprofit organization whose mission or 
19activities include any of the following:

20(1) Environmental education to promote conservation,
21maintenance, acquisition or improvement of a natural area for
22public use.

23(2) Protection, preservation or management of natural
24resources.

25(3) Restoration, conservation or maintenance of
26wildlife. This paragraph includes the creation or
27preservation of wildlife sanctuaries or preserves.

28(4) Best hunting practices, hunter education and hunting
29safety.

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

1member selects or is assigned a number for a chance at a prize
2with the winner determined by random drawing to take place on
3the licensed eligible organization's licensed premises during
4the same operating day. The term includes games of chance
5commonly known as "member sign-in lotteries" and "half-and-half
6lotteries." Daily drawing winners may be determined with the aid
7of a passive selection device or reference to drawings conducted
8by the department pursuant to the act of August 26, 1971 
9(P.L.351, No.91), known as the State Lottery Law. Daily drawing
10chances may not be sold for an amount in excess of $1, and no
11more than one chance per individual may be sold per drawing. 
12Nothing in this definition shall restrict an eligible 
13organization from conducting more than one drawing per day. 
14After a daily drawing is held, a bona fide member may 
15immediately select a number for a chance at a prize for the next 
16day's daily drawing.

17* * *

18"Games of chance." Punchboards, daily drawings, weekly
19drawings, 50/50 drawings, raffles, pools, race night games and
20pull-tabs, as defined in this act, provided that no such game
21shall be played by or with the assistance of any mechanical or
22electrical devices or media other than a dispensing machine or
23passive selection device and further provided that the
24particular chance taken by any person in any such game shall not
25be made contingent upon any other occurrence or the winning of
26any other contest, but shall be determined solely at the
27discretion of the purchaser. This definition shall not be
28construed to authorize any other form of gambling currently
29prohibited under any provision of [Title 18 of the Pennsylvania
30Consolidated Statutes] 18 Pa.C.S. (relating to crimes and

1offenses) or authorized under 4 Pa.C.S. (relating to
2amusements). Nothing in this act shall be construed to authorize
3games commonly known as "slot machines" or "video [poker."]
4poker" or other games regulated by the Pennsylvania Gaming 
5Control Board.

6* * *

7"Pool." An activity in which a person pays an entry fee for
8each chance to win cash or merchandise based on the outcome of
9an event or series of events wherein the participants in the
10event or series of events are natural persons or animals, and to
11which all of the following apply:

12(1) The maximum number of individuals that may
13participate in a pool is 100 people.

14(2) The maximum entry fee for each individual entry in a
15pool is $20.

16(3) Other than the entry fee no other money or thing of
17value is paid or given for participation in a pool.

18(4) There is at least one guaranteed winner from among
19the participants.

20(5) All entry fees collected for entry into the pool are
21paid as prizes to one or more participants in the pool.

22(6) No entry fees or portions thereof are retained by 
23the person or eligible organization operating the pool.

24* * *

25"Public interest purpose." One or more of the following:

26(1) The activities and operations of a nonprofit 
<-27organization that provides a benevolent, charitable, 
28religious, educational, philanthropic, humane, scientific, 
29patriotic, social welfare, social advocacy, public health, 
30public safety, emergency response, environmental, historic or
 

1civic objective.

2(2) Initiating, performing or fostering worthy public
3works or enabling or furthering the erection or maintenance
4of public structures.

5(3) Lessening the burdens borne by government or
6voluntarily supporting, augmenting or supplementing services
7which government would normally render to the people.

8(4) Improving, expanding, maintaining or repairing real
9property owned or leased by an eligible organization and
10relating operational expenses used for purposes specified in
11paragraphs (1), (2) and (3).

<-12(5) Nonprofit youth sports activities, services to
13support or honor veterans and activities relating to the
14provision of volunteer fire and rescue activities.

<-15(5) Nonprofit youth sports activities.

16(6) Activities relating to the provision of volunteer
17fire, ambulance or rescue services.

18(7) Activities conducted by a veterans organization,
19whether or not the veterans organization holds a club
20license. Activities under this paragraph may include:

21(i) Scholarships.

22(ii) Services to economically or socially support
23veterans.

24(iii) Activities to honor veterans.

25(iv) Other activities that qualify under paragraphs
26(1), (2), (3), (4), (5) and (6).

27The term does not include the erection or acquisition of any
28real property, unless the property will be used exclusively for
29one or more of the purposes specified in this definition.

30* * *

1"Race night game." A game of chance in which multiple
2participants place entry fees or wagers on a prerecorded horse
3race displayed on a single screen to multiple participants
4simultaneously during a gaming session that does not exceed
5eight consecutive hours and is not conducted more frequently
6than once a month. This definition does not include an instant
7racing machine, historical racing machine or other similar pari-
8mutuel device.

9"Raffle." A game of chance in which a participant buys a
10ticket for a chance at a prize with the winner determined by a
11random drawing of corresponding ticket stubs [to take place at a
12location and date or dates printed upon each ticket]. Such games
13of chance shall include lotteries but not daily and weekly
14drawings. Raffle winners may be determined by reference to
15drawings conducted by the department pursuant to the act of
16August 26, 1971 (P.L.351, No.91), known as the State Lottery
17Law. The term shall include a raffle auction.

18"Raffle auction." A game of chance in which a participant
19buys a ticket for a chance to win a prize as follows:

20(1) Tickets are placed in a location assigned to a
21particular prize.

22(2) The winner of each prize is determined by a random 
23drawing of a ticket that corresponds to the ticket held by 
24the participant.

25* * *

<-26"Veterans organization." Any congressionally chartered 
27organization within this Commonwealth, or any branch or lodge or 
28chapter of a nonprofit national or State organization within 
29this Commonwealth, the membership of which consists of 
30individuals who were members of the armed services or armed
 

1forces of the United States. The term shall also include [home 
2associations.] a home association, affiliate or other nonprofit 
3organization established by or in cooperation with the veterans 
4organization to provide services to veterans or to the 
5community. Such organizations shall have been in existence in 
6this Commonwealth fulfilling their purposes for one year prior 
7to the date of application for a license.

8"Weekly drawing." A game of chance in which a bona fide 
9member selects or receives a number or numbers for a chance at a 
10prize with the winner determined by a random drawing to take 
11place on the licensed eligible organization's licensed premises 
12at the end of a seven-day period. Weekly drawing winners may be 
13determined with the aid of a passive selection device or 
14reference to drawings conducted by the Department of Revenue 
15pursuant to the act of August 26, 1971 (P.L.351, No.91), known 
16as the State Lottery Law. Weekly drawing chances may not be sold 
17for an amount in excess of $1. After a weekly drawing is held, a 
18bona fide member may immediately select a number for a chance at 
19a prize for the next weekly drawing.

20Section 2. Section 301 of the act, amended October 24, 2012 
21(P.L.1462, No.184), is amended to read:

22Section 301. Games of chance permitted.

23Every eligible organization to which a license has been 
24issued under the provisions of this chapter may conduct games of 
25chance for the purpose of raising funds for public interest 
26purposes. Except as provided in <-[Chapter 5<-] Chapters 5 and 9, 
27all proceeds of a licensed eligible organization shall be used 
28exclusively for public interest purposes, for the purchase of 
29games of chance[,] or for the payment of the license fee [or for 
30the payment of the fee for background checks], as required by
 

1this act. An eligible organization whose primary purpose is the 
2promotion of a public interest may utilize the proceeds from 
3small games of chance to fulfill that purpose.

4Section 2.1. The act is amended by adding a section to read:

5Section 301.1. Prohibition regarding pools.

6The operation of a pool must comply with the Professional and 
7Amateur Sports Protection Act (Public Law 102-559, 28 U.S.C. § 
83701 et seq.) or other Federal law in the operation of or 
9participation in the pool.

10Section 3. Section 302(a), (b), (c), (d), (d.1), (f) and (h) 
11of the act, amended February 2, 2012 (P.L.7, No.2), are amended 
12and the section is amended by adding a subsection to read:

13Section 302. Prize limits.

14(a) Individual prize limit.--Except as provided under 
15subsections (d) and (d.1), the maximum prize which may be
16awarded for any single chance shall be [$1,000] $2,000.

17(b) Aggregate prize limit.--No more than [$25,000] $35,000
18in prizes shall be awarded from games of chance by a licensed
19eligible organization in any seven-day period.

20(c) Raffle prize limit.--Up to [$10,000] $15,000 in prizes 
21may be awarded in raffles in any calendar month.

22* * *

23(d) Exception for raffles.--Notwithstanding subsection (b) 
24or (c), a licensed eligible organization may conduct a raffle 
25under section 308 and award a prize or prizes valued in excess
26of [$1,000] $3,000 each only under the following conditions:

27(1) The licensing authority has issued a special permit
28for the raffle under section 308.

29(2) A licensed eligible organization shall be eligible
30to receive no more than [eight] ten special permits in any

1licensed term except that a volunteer fire, ambulance or 
2rescue or conservation organization that is not a club 
3licensee shall be eligible to receive [ten] 12 special
4permits in any licensed term.

5(3) Only one raffle may be conducted under each special
6permit issued under section 308.

7(4) Except as provided under subsection (d.1), the total
8of all prizes awarded under this subsection shall be no more
9than [$100,000] $150,000 per calendar year, which shall <-not 
10be subject to the aggregate limit under subsection (b) or (c) 
<-11or this subsection in accordance with section 304.1 and this 
12act.

13(d.1) Additional award.--A volunteer fire, ambulance [or], 
14rescue or conservation organization may, in addition to the 
15total under subsection (d)(4), award up to [$50,000] $100,000 
16from raffles which shall not be subject to the aggregate limit 
17under subsection (b), (c) or (d).

18* * *

19(f) Daily drawing carryover.--The prize limitation contained
20in subsections (a) and (b) may be exceeded by a daily drawing
21under the following circumstances: a daily drawing may award a
22prize in excess of [$1,000] $2,000 if such prize is the result
23of a carryover of a drawing which resulted from the winning
24number in such drawing not being among the eligible entrants in
25such drawings. Nothing contained herein shall authorize the
26prize limitation as contained in subsections (a) and (b) to be
27exceeded as a result of a failure to conduct a drawing on an
28operating day during which chances were sold for a daily drawing
29or for a daily drawing for which chances were sold in excess of
30$1 or for which more than one chance was sold to an eligible

1participant.

2* * *

3(h) Weekly drawing carryover exception.--Weekly drawings
4shall be governed by the prize limitation contained in
5subsection (b). The prize limitation contained in subsection (b)
6may be exceeded by a weekly drawing under the following
7circumstances: a weekly drawing may award a prize where the cash
8value is in excess of [$25,000] $35,000 if such prize is the
9result of a carryover of a drawing or drawings which resulted
10from the winning number or numbers in such drawing or drawings
11not being among the eligible entrants in such drawings. Nothing
12contained in this chapter shall authorize the prize limitation
13under subsection (b) to be exceeded as a result of a failure to
14conduct a drawing for a week during which chances were sold for
15a weekly drawing or for a weekly drawing for which chances were
16sold in excess of $1.

17(i) Concurrent operation.--Nothing under this act shall
18prohibit the concurrent operation of daily or weekly drawings.

19Section 3.1. Section 303(b) of the act, amended February 2,
202012 (P.L.7, No.2), is amended to read:

21Section 303. Sales limited.

22* * *

23(b) Limitation.--No game of chance, other than a raffle
24under section 302(d), sold, offered for sale or furnished to a 
25licensed eligible organization for use within this Commonwealth
26shall contain, permit, depict or designate a prize having a
27prize limit in excess of [$1,000] $2,000.

28Section 3.2. The act is amended by adding a section to read:

29Section 303.1. Raffle sales.

30Nothing in this act shall prohibit the sale of a raffle

1ticket available to an individual who lawfully may enter the
2raffle. Tickets may be issued in accordance with the following:

3(1) Issued at a discounted price.

4(2) Issued as part of the sale of other tickets.

5(3) Issued free of charge or as part of the sale of
6other tickets.

7(4) Issued as bonus tickets as part of the sale of other
8tickets.

9(5) Issued as prizes, including prizes at auctions.

10Section 4. Section 304(g), (h) and (i) of the act, amended
11February 2, 2012 (P.L.7, No.2), are amended and the section is
12amended by adding a subsection to read:

13Section 304. Distributor licenses.

14* * *

15(c.1) Background.--The department shall conduct and annually
16update a criminal history record check on each individual listed
17under subsection (b)(6).

18* * *

19(g) Ineligibility.--The department shall not issue or renew
20a distributor license for the sale of games of chance to a
21person, including any corporation, firm or partnership which has
22as an officer, director or other person in a supervisory or
23management position, or employee eligible to make sales on
24behalf of the distributor, who:

25(1) has been convicted of a felony in a state or Federal
26court within the past five years; or

27(2) has been convicted within ten years of the date of
28application in a state or Federal court of a violation of
29[the act of July 10, 1981 (P.L.214, No.67), known as the
30Bingo Law, or of this act or of a gambling-related offense

1under Title 18 of the Pennsylvania Consolidated Statutes
2(relating to crimes and offenses) or other comparable State
3or Federal law.] any of the following:

4(i) This act.

5(ii) The act of July 10, 1981 (P.L.214, No.67), 
6known as the Bingo Law.

7(iii) A gambling-related offense under 4 Pa.C.S.
8(relating to amusements).

9(iv) A gambling-related offense under 18 Pa.C.S.
10(relating to crimes and offenses).

11(v) A Federal or State law comparable to the
12statutes listed under subparagraphs (i), (ii), (iii) and
13(iv).

14(h) License and renewal fees.--The fee for a distributor
15license shall be [$1,000] $2,000. Licenses shall be renewable on
16an annual basis.

17(i) Exception.--This section shall not apply to the
18manufacture or distribution of raffle tickets, 50/50 drawings, 
19daily drawings, weekly drawings or pools.

20Section 4.1. Section 305(d) of the act, amended October 24,
212012 (P.L.1462, No.184), is amended to read:

22Section 305. Registration of manufacturers.

23* * *

24(d) Exception.--This section shall not apply to the 
25manufacture or distribution of raffle tickets, 50/50 drawings, 
26daily drawings [or], weekly drawings or pools.

27Section 5. Section 306(b) and (c) of the act, amended
28October 24, 2012 (P.L.1462, No.184), are amended and subsection
29(a) is amended by adding a paragraph to read:

30Section 306. Regulations of department.

1(a) Authorization.--The department shall promulgate
2regulations to:

3* * *

4(3.1) Establish procedures to ensure that race night
5games are secure, random and totally dependent upon chance.

6* * *

7(b) Limitation on recordkeeping requirements.--This section
8shall not be construed to authorize the department to promulgate
9regulations providing for recordkeeping requirements for
10licensed eligible organizations which require unreasonable or
11unnecessary information or a repetitious listing of information.
12The department shall strive to keep such recordkeeping
13requirements from being an undue hardship or burden on licensed
14eligible organizations. Except as provided under section 701(b),
15the department may not require the retention of records for a
16period in excess of two years. If an individual prize is in 
17excess of $600, the record shall include the name and address of 
18the winner. An eligible organization shall provide each winner 
19with a receipt of the value of the prize when the prize exceeds 
20$600.

21(c) [Reporting requirements.--Each eligible organization
22which has proceeds in excess of $2,500 in a calendar year shall
23submit an annual report to the department including:

24(1) Prizes awarded as required under section 335 of the
25act of March 4, 1971 (P.L.6, No.2), known as the Tax Reform
26Code of 1971.

27(2) Amounts expended for public interest purposes.] 
28(Reserved).

29Section 6. Section 307(a), (b), (b.1), (b.2), (b.3), (d)(3), 
30(d.1) and (h) of the act, amended February 2, 2012 (P.L.7, No.2)
 

1and October 24, 2012 (P.L.1482, No.184), are amended to read:

2Section 307. Licensing of eligible organizations [to conduct
3games of chance].

4[(a) License required.--No eligible organization shall
5conduct or operate any games of chance unless such eligible
6organization has obtained and maintains a valid license or 
7limited occasion license issued pursuant to this section. An 
8auxiliary group of a licensed eligible organization shall be
9eligible to conduct games of chance using the license issued to
10the eligible organization provided that the auxiliary group or
11groups are listed on the application and license of the eligible
12organization. An auxiliary group is not eligible to obtain a 
13license or a limited occasion license. No additional licensing
14fee shall be charged for an auxiliary group's eligibility under
15this chapter. Auxiliary groups shall not include branches,
16lodges or chapters of a Statewide organization.

17(b) Issuance and fees.--The licensing authority shall
18license, upon application, within 30 days any eligible
19organization meeting the requirements for licensure contained in
20this chapter to conduct and operate games of chance at such
21locations within the county or in such manner as stated on the
22application as limited by subsection (b.1). The license fee to
23be charged to each eligible organization shall be $100, except
24for limited occasion licenses which shall be $10. Licenses shall
25be renewable annually upon the anniversary of the date of issue.
26The license fee shall be used by the licensing authority to 
27administer this act.

28(b.1) Location of games of chance.--

29(1) Except as otherwise provided in this section, a
30licensed eligible organization, except a limited occasion

1licensee, may conduct small games of chance at a licensed
2premises. The licensed premises shall be indicated on the
3eligible organization's license application. Only one license
4shall be issued per licensed premises. Except as provided
5under paragraph (4), a licensed eligible organization may not
6share a licensed premises with another licensed eligible
7organization; and no licensed eligible organization may
8permit its premises to be used for small games of chance by
9another licensed eligible organization.

10(2) Where there exists a location or premises which is
11the normal business or operating site of the eligible
12organization and the location or premises is owned or leased
13by that eligible organization to conduct its normal business,
14that site shall be the eligible organization's licensed
15premises. If that location consists of more than one
16building, the eligible organization shall identify the 
17building that will be designated as the licensed premises.

18(3) When an eligible organization does not own or lease
19a specific location to conduct its normal business, the
20eligible organization may make arrangements that are
21consistent with this act to establish a licensed premises,
22including leasing a premise under a written agreement for a
23rental; however, the rental may not be determined by either
24the amount of receipts realized from the conduct of games of
25chance or the number of people attending. An eligible
26organization may lease a facility for a banquet in connection
27with the serving of a meal based on a per-head charge.

28(3.1) Notwithstanding paragraphs (1), (2) and (3), if an
29eligible organization is unable to conduct games of chance at
30the location listed on its application and license due to

1natural disaster, fire or other circumstance that renders the
2location unusable, the eligible organization may submit a
3written request to the district attorney to conduct games of
4chance in a different location, including the licensed
5premises of another eligible organization. The request must
6include the change in the location and the dates and times
7the games of chance will be operated at the alternative
8location. The district attorney shall establish a limit on
9the duration of the authorization to conduct games of chance
10at the alternative location. Following the expiration of the
11authorization period, the eligible organization must return
12to the location specified in its application and license or
13apply to the licensing authority for a new permanent location
14for the conduct of games of chance. The district attorney may
15approve or deny the request or stipulate additional
16requirements as a condition of approval. If an eligible
17organization permits another eligible organization to use its
18licensed premises to conduct games of chance under this
19paragraph, the eligible organization shall cease its
20operation of games of chance during the time the eligible
21organization utilizing its premises is conducting its games
22of chance.

23(3.2) Notwithstanding paragraphs (1), (2) and (3), the
24following eligible organizations established to raise funds
25shall not be required to conduct a 50/50 drawing or a raffle
26at a licensed premises or to own, lease or establish a
27licensed premises:

28(i) A nonprofit sports team.

29(ii) A primary or secondary school-sponsored club,
30sports team or organization.

1(4) An eligible organization that has obtained a limited
2occasion license under subsection (b.3) may use another
3eligible organization's licensed premises to conduct its
4games of chance. When a licensed eligible organization is
5permitting a limited occasion licensee to use its licensed
6premises for purposes of games of chance, it shall cease the
7operation of its own games of chance during the period that
8the limited occasion licensee is conducting its games on the
9premises.

10(5) For purposes of major league sports drawings, the
11facility at which a major league sports team conducts its
12games shall constitute a premises for purposes of this act.

13(b.2) Off-premises games of chance.--Notwithstanding any
14other provisions of this section, all of the following apply:

15(1) A licensed eligible organization may conduct games
16of chance at a location off its premises when the games of 
17chance are part of an annual carnival, fair, picnic or
18banquet held or participated in by that licensed eligible
19organization on a historical basis. The licensed eligible
20organization must notify, in writing, the district attorney
21and licensing authority of the location, date and times of
22the event where it will be conducting games of chance.

23(2) Raffle tickets may be sold off the licensed premises
24in a municipality which has adopted the provisions of this
25act by an affirmative vote in a municipal referendum. A
26licensed eligible organization which plans to sell raffle
27tickets in a municipality located in a county other than the
28county in which the eligible organization is licensed shall
29notify that county's district attorney and licensing
30authority as to the location and the dates that the licensed

1eligible organization plans to sell raffle tickets.

2(b.3) Limited occasion licenses.--Eligible organizations
3which do not own their own premises or which do not lease a
4specific location to conduct their normal business may apply for
5a limited occasion license to conduct games of chance on not
6more than three occasions covering a total of seven days during
7a licensed year. A limited occasion license entitles an eligible
8organization to conduct no more than two raffles during a
9licensed year where prizes may not exceed the established limits
10for regular monthly raffles. Holders of a limited occasion
11license may not apply or be granted any other license or special
12permit under this act. No holder of a regular license or special
13permit under this act shall apply or be granted a limited
14occasion license.] (a) License required.--The following shall 
15apply:

16(1) An eligible organization shall not conduct or
17operate games of chance unless the eligible organization has
18obtained a valid license as follows:

19(i) A regular license which must be renewed
20annually.

21(ii) A monthly license which permits the eligible
22organization to conduct games of chance for a 30-
23consecutive-day period.

24(2) An auxiliary group of a licensed eligible
25organization may conduct games of chance using the license
26issued to the eligible organization if the auxiliary group is
27listed on the application and license of the eligible
28organization. An auxiliary group shall not be eligible to
29obtain a license. No additional licensing fee shall be
30charged for an auxiliary group. If the eligible organization
 

1is a club licensee, the games of chance conducted by the 
2auxiliary group must be held on the club's licensed premises.

3(b) Issuance.--The licensing authority shall issue a license
4within 30 days of the submission of an application by an
5eligible organization that meets the requirements under this
6chapter.

7(b.1) Fee.--The license fee to be charged to each eligible 
8organization for a regular license shall be $125. The license 
9fee to be charged for a monthly license shall be $25. A regular 
10license must be renewed annually. The fee shall be used by the 
11licensing authority to administer this act.

12(b.2) Location.--An eligible organization that holds a
13license under subsection (a) and that is not a club licensee may
14conduct small games of chance in the county where the license is
15issued at a premises which is <-in the normal business or <-the
16operating site of the eligible organization or at a premises or
17other location not prohibited by local ordinance, and for which
18the treasurer has been notified<-, in accordance with the
19following:.<- The following shall apply:

20(1) No more than three licensees, including the licensee
21that owns or leases the premises, may conduct small games of
22chance simultaneously at a premises or location.

23(2) A licensee shall ensure that the conduct of small
24games of chance by different organizations are separate and
25clearly identified within a premises or location.

26(3) A licensee that is not a club licensee may conduct
27games of chance simultaneously with the conduct of games of
28chance by a club licensee on not more than three occasions
29covering a total of seven days during the year.

30(4) The following shall apply:

1(i) Notwithstanding paragraph (1), if a club
2licensee is unable to conduct games of chance at the
3location listed on its application and license due to
4natural disaster, fire or other circumstance that renders
5the location unusable, the club licensee may submit a
6written request to the district attorney to conduct games
7of chance in a different location, including the licensed
8premises of another eligible organization.

9(ii) A request under subparagraph (i) must include
10the change in the location and the dates and times the
11games of chance will be operated at the alternative
12location.

13(iii) The district attorney shall approve or deny 
14the request and shall establish a limit on the duration
15of the authorization to conduct games of chance at the
16alternative location. Following the expiration of the
17authorization period, the club licensee must return to
18the location specified in its application and license or
19apply to the licensing authority for a new permanent
20location. The district attorney may stipulate additional
21requirements as a condition of approval.

22(iv) If a club licensee permits another club 
23licensee to use its licensed premises under this
24paragraph to conduct games of chance, the host club 
25licensee must cease its operation of games of chance
26during the time the club licensee utilizing its premises
27is conducting its games of chance.

28(d) Operation.--Each licensed eligible organization shall be 
29prohibited from the following:

30* * *

1(3) Paying any compensation to any person for conducting
2any games of chance. Games of chance may only be conducted by
3managers, officers, directors, bar personnel and bona fide
4members of the eligible organization. This paragraph shall 
5not apply to the sale of a raffle or raffle auction ticket.

6* * *

7(d.1) Bank account and records.--[The licensed] An eligible
8organization [shall keep a bank account to hold the] with
9proceeds of games of chance that exceed $40,000 per year shall 
10maintain a bank account, which shall be separate from all other
11funds belonging to the licensed eligible organization. Account
12records shall show all expenditures and income and shall be
13retained by the licensed eligible organization for at least two
14years.

15* * *

16[(h) Background checks.--Each application for a license
17submitted by an eligible organization which has proceeds in
18excess of $2,500 in a year shall include the results of a
19criminal history record information check obtained from the
20Pennsylvania State Police, as defined in 18 Pa.C.S. § 9102
21(relating to definitions) and permitted by 18 Pa.C.S. § 9121(b)
22(relating to general regulations), for the executive officer and
23secretary of the eligible organization making the application
24for a license or any other person required by the department.]

25Section 7. <-Sections 308(a) and 701(a)(5) <-Section 308(a) of
26the act, amended February 2, 2012 (P.L.7, No.2), <-are <-is amended
27to read:

28Section 308. Special permits.

29(a) Issuance and fee.--The licensing authority shall issue a
30special permit for each raffle in which the licensed eligible
 

1organization proposes to award individual prizes in excess of
2[$1,000] $3,000. The licensing authority may establish and
3collect a fee not to exceed $25 for the issuance of special
4permits under this section.

5* * *

<-6Section 7.1. The act is amended by adding a section to read:

7Section 505.1. Affiliated clubs.

8(a) Applicability.--This section shall apply to a club
9licensee that meets any of the following:

10(1) Is affiliated with a veterans organization or
11volunteer fire company.

12(2) Uses the name of a veterans organization or
13volunteer fire company or holds itself out as being
14affiliated or directly associated with a veterans
15organization or volunteer fire company.

16(3) Has a licensed premises that is connected to the
17premises of a veterans organization or volunteer fire
18company.

19(b) Proceeds.--A club licensee under subsection (a) may
20provide funds from proceeds under section 502(a)(1) to a
21veterans organization or volunteer fire company or an
22organization affiliated with a veterans organization or
23volunteer fire company that conducts activities that include
24public interest activities.

25Section 7.2. Section 701(a)(5) of the act, amended February
262, 2012 (P.L.7, No.2), is amended to read:

27Section 701. Revocation of licenses.

28(a) Grounds.--The following shall be grounds for suspension,
29revocation or nonrenewal of a license:

30* * *

1(5) Any person or persons other than a manager, officer, 
2director, bar personnel or a bona fide member of an eligible 
3organization have been involved in managing, setting up, 
4operating or running games of chance. This paragraph shall 
5not apply to the sale of a raffle or raffle auction ticket.

6* * *

7Section 8. Section 702(b) and (c) of the act, amended
8February 2, 2012 (P.L.7, No.2) and October 24, 2012 (P.L.1462,
9No.184), are amended to read:

10Section 702. Enforcement.

11* * *

12(b) Bureau of Liquor Control Enforcement.--If the licensee 
13is a club licensee <-or a licensee under Chapter 9, the Bureau of 
14Liquor Control Enforcement may enforce the provisions of this 
15act in accordance with subsection (g). An administrative law 
16judge under section 212 of the act of April 12, 1951 (P.L.90, 
17No.21), known as the Liquor Code, may impose the penalties under 
18subsection (d) following the issuance of a citation by the 
19bureau. The Bureau of Liquor Control Enforcement shall have no 
20jurisdiction to enforce the provisions of this act on any 
21special occasion permit holder under section 408.4 of the act of 
22April 12, 1951 (P.L.90, No.21), known as the Liquor Code. The 
23Bureau of Liquor Control Enforcement shall retain all powers and 
24duties to enforce the provisions of the Liquor Code on a special 
25occasion permit holder.

26(c) Random audits.--The <-[Bureau of Liquor Control
27Enforcement<-] department shall conduct [annual] biennial random
28audits of 5% of all club licensees.

29* * *

30Section 9. The act is amended by adding a section to read:

1Section 708. Pool selling.

2Notwithstanding 18 Pa.C.S. § 5514 (relating to pool selling
3and bookmaking), the operation of or participation in a pool in
4accordance with this act shall not constitute a criminal
5activity.

6Section 10. This act shall take effect in 60 days.