AN ACT

 

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
9prize limits and for distribution of proceeds.

10The General Assembly of the Commonwealth of Pennsylvania
11hereby enacts as follows:

12Section 1. Sections 302 and 502 of the act of December 19,
131988 (P.L.1262, No.156), known as the Local Option Small Games
14of Chance Act, amended or added February 2, 2012 (P.L.7, No.2),
15are amended to read:

16Section 302. Prize limits.

17(a) Individual prize limit.--Except as provided under
18subsections (d) and (d.1), the maximum prize which may be
19awarded for any single chance shall be [$1,000] $5,000.

20(b) Aggregate prize limit.--No more than [$25,000] $35,000
21in prizes shall be awarded from games of chance by a licensed

1eligible organization in any seven-day period.

2(c) Raffle prize limit.--Up to [$10,000] $20,000 in prizes
3may be awarded in raffles in any calendar month.

4(c.1) Total limit.--All prizes awarded under this section
5shall be subject to the aggregate prize limits under subsection
6(b).

7(d) Exception for raffles.--Notwithstanding subsection (b)
8or (c), a licensed eligible organization may conduct a raffle
9and award a prize or prizes valued in excess of [$1,000] $5,000
10each only under the following conditions:

11(1) The licensing authority has issued a special permit
12for the raffle under section 308.

13(2) A licensed eligible organization shall be eligible
14to receive no more than eight special permits in any licensed
15term except that a volunteer fire, ambulance or rescue
16organization that is not a club licensee shall be eligible to
17receive ten special permits in any licensed term.

18(3) Only one raffle may be conducted under each special
19permit issued under section 308.

20(4) Except as provided under subsection (d.1), the total
21of all prizes awarded under this subsection shall be no more
22than $100,000 per calendar year.

23(d.1) Additional award.--A volunteer fire, ambulance or
24rescue organization may, in addition to the total under
25subsection (d)(4), award up to $50,000 from raffles which shall
26not be subject to the aggregate limit under subsection (b), (c)
27or (d).

28(f) Daily drawing carryover.--The prize limitation contained
29in subsections (a) and (b) may be exceeded by a daily drawing
30under the following circumstances: a daily drawing may award a

1prize in excess of [$1,000] $5,000 if such prize is the result
2of a carryover of a drawing which resulted from the winning
3number in such drawing not being among the eligible entrants in
4such drawings. Nothing contained herein shall authorize the
5prize limitation as contained in subsections (a) and (b) to be
6exceeded as a result of a failure to conduct a drawing on an
7operating day during which chances were sold for a daily drawing
8or for a daily drawing for which chances were sold in excess of
9$1 or for which more than one chance was sold to an eligible
10participant.

11(g) Additional exception.--When a daily drawing or weekly
12drawing is set up or conducted in such a manner as to pay out or
13award 100% of the gross revenues generated from such drawing,
14the limitation contained in subsection (b) shall not apply.

15(h) Weekly drawing carryover exception.--Weekly drawings
16shall be governed by the prize limitation contained in
17subsection (b). The prize limitation contained in subsection (b)
18may be exceeded by a weekly drawing under the following
19circumstances: a weekly drawing may award a prize where the cash
20value is in excess of [$25,000] $35,000 if such prize is the
21result of a carryover of a drawing or drawings which resulted
22from the winning number or numbers in such drawing or drawings
23not being among the eligible entrants in such drawings. Nothing
24contained in this chapter shall authorize the prize limitation
25under subsection (b) to be exceeded as a result of a failure to
26conduct a drawing for a week during which chances were sold for
27a weekly drawing or for a weekly drawing for which chances were
28sold in excess of $1.

29Section 502. Distribution of proceeds.

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

1received by a club licensee shall be distributed as follows:

2(1) No less than [70%] 40% of the proceeds shall be paid
3to organizations for public interest purposes in the calendar
4year in which the proceeds were obtained.

5(2) No more than [30%] 60% of the proceeds obtained in a
6calendar year may be retained by a club licensee and used for
7the following operational expenses relating to the club
8licensee:

9(i) Real property taxes.

10(ii) Utility and fuel costs.

11(iii) Heating and air conditioning equipment or
12repair costs.

13(iv) Water and sewer costs.

14(v) Property or liability insurance costs.

15(vi) Mortgage payments.

16(vii) Interior and exterior repair costs, including
17repair to parking lots.

18(viii) New facility construction costs.

19(ix) Entertainment equipment, including television,
20video and electronic games.

21(x) Other expenses adopted in regulation by the
22department.

23(a.1) Amounts retained.--Amounts retained by a club licensee
24under subsection (a)(2) shall be expended within the same
25calendar year unless the club licensee notifies the department
26that funds are being retained for a substantial purchase or
27project. Notification shall include a description of the
28purchase or project, the cost and the anticipated date of the
29purchase or project.

30(b) Prohibition.--

1(1) Proceeds shall not be used for wages[,] or alcohol
2[or food purchases] or for the payment of any fine levied
3against the club licensee.

4(2) An officer or employee of a club licensee who
5operates the game of chance shall not participate in the
6game. This paragraph shall not apply to a raffle.

7Section 2. This act shall take effect in 60 days.