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," in preliminary
9provisions, further providing for definitions; in games of
10chance, further providing for prize limits; in club
11licensees, further providing for club licensee and for
12distribution of proceeds and providing for contribution; and,
13in enforcement, providing for penalties and interest on
14contribution.

15The General Assembly of the Commonwealth of Pennsylvania
16hereby enacts as follows:

17Section 1. Section 103 of the act of December 19, 1988
18(P.L.1262, No.156), known as the Local Option Small Games of
19Chance Act, is amended by adding a definition to read:

20Section 103. Definitions.

21The following words and phrases when used in this act shall
22have the meanings given to them in this section unless the
23context clearly indicates otherwise:

24* * *

1"Fund." The Student Achievement Block Grant Fund.

2* * *

3Section 2. Sections 302 and 501(a) of the act, amended or
4added February 2, 2012 (P.L.7, No.2), are amended to read:

5Section 302. [Prize limits] Special raffle permit.

6[(a) Individual prize limit.--Except as provided under 
7subsections (d) and (d.1), the maximum prize which may be
8awarded for any single chance shall be $1,000.

9(b) Aggregate prize limit.--No more than $25,000 in prizes
10shall be awarded from games of chance by a licensed eligible
11organization in any seven-day period.

12(c) Raffle prize limit.--Up to $10,000 in prizes may be
13awarded in raffles in any calendar month.

14(c.1) Total limit.--All prizes awarded under this section
15shall be subject to the aggregate prize limits under subsection
16(b).]

17(d) Exception for raffles.--[Notwithstanding subsection (b) 
18or (c), a] A licensed eligible organization may conduct a raffle
19[and award a prize or prizes valued in excess of $1,000 each]
20only under the following conditions:

21(1) The licensing authority has issued a special permit
22for the raffle under section 308.

23(2) A licensed eligible organization shall be eligible
24to receive no more than eight special permits in any licensed
25term except that a volunteer fire, ambulance or rescue
26organization that is not a club licensee shall be eligible to
27receive ten special permits in any licensed term.

28(3) Only one raffle may be conducted under each special
29permit issued under section 308.

30[(4) Except as provided under subsection (d.1), the

1total of all prizes awarded under this subsection shall be no
2more than $100,000 per calendar year.

3(d.1) Additional award.--A volunteer fire, ambulance or 
4rescue organization may, in addition to the total under 
5subsection (d)(4), award up to $50,000 from raffles which shall 
6not be subject to the aggregate limit under subsection (b), (c) 
7or (d).

8(f) Daily drawing carryover.--The prize limitation contained
9in subsections (a) and (b) may be exceeded by a daily drawing
10under the following circumstances: a daily drawing may award a
11prize in excess of $1,000 if such prize is the result of a
12carryover of a drawing which resulted from the winning number in
13such drawing not being among the eligible entrants in such
14drawings. Nothing contained herein shall authorize the prize
15limitation as contained in subsections (a) and (b) to be
16exceeded as a result of a failure to conduct a drawing on an
17operating day during which chances were sold for a daily drawing
18or for a daily drawing for which chances were sold in excess of
19$1 or for which more than one chance was sold to an eligible
20participant.

21(g) Additional exception.--When a daily drawing or weekly
22drawing is set up or conducted in such a manner as to pay out or
23award 100% of the gross revenues generated from such drawing,
24the limitation contained in subsection (b) shall not apply.

25(h) Weekly drawing carryover exception.--Weekly drawings
26shall be governed by the prize limitation contained in
27subsection (b). The prize limitation contained in subsection (b)
28may be exceeded by a weekly drawing under the following
29circumstances: a weekly drawing may award a prize where the cash
30value is in excess of $25,000 if such prize is the result of a

1carryover of a drawing or drawings which resulted from the
2winning number or numbers in such drawing or drawings not being
3among the eligible entrants in such drawings. Nothing contained
4in this chapter shall authorize the prize limitation under
5subsection (b) to be exceeded as a result of a failure to
6conduct a drawing for a week during which chances were sold for
7a weekly drawing or for a weekly drawing for which chances were
8sold in excess of $1.]

9Section 501. Club licensee.

10(a) Report.--

11(1) Beginning in 2013, a club licensee shall submit
12semiannual reports to the department for the preceding six-
13month period on a form and in a manner prescribed by the
14department.

15(2) The report must be filed under oath or affirmation
16of an authorized officer of the club licensee.

17(3) The report shall include all of the following
18information:

19(i) The proceeds received by the club licensee from
20each game of chance conducted, itemized by week.

21(ii) The amount of prizes paid from all games of
22chance, itemized by week.

23(iii) Other costs incurred related to the conduct of 
24games of chance.

25(iv) The verification of amounts distributed for 
26public interest purposes itemized under section 
27502(a) (1), itemized by the recipient.

28(v) An itemized list of expenditures made or amounts 
29retained and expenditures under section 502(a) (2).

30(vi) The address and the county in which the club 

1licensee is located.

2(vii) Other information or documentation required by 
3the department.

4(viii) Calculation of the 20% contribution under
5section 502.1.

6* * *

7Section 3. Section 502(a) of the act, added February 2, 2012
8(P.L.7, No.2), is amended and the section is amended by adding a
9subsection to read:

10Section 502. Distribution of proceeds.

11(a) Distribution.--The proceeds from games of chance
12received by a club licensee shall be distributed as follows:

13(1) No less than [70%] 50% of the proceeds shall be paid
14to organizations for public interest purposes in the calendar
15year in which the proceeds were obtained.

16(1.1) No less than 20% of the proceeds shall be
17deposited into the Student Achievement Block Grant Fund.

18(2) No more than 30% of the proceeds obtained in a
19calendar year may be retained by a club licensee and used for
20the following operational expenses relating to the club
21licensee:

22(i) Real property taxes.

23(ii) Utility and fuel costs.

24(iii) Heating and air conditioning equipment or
25repair costs.

26(iv) Water and sewer costs.

27(v) Property or liability insurance costs.

28(vi) Mortgage payments.

29(vii) Interior and exterior repair costs, including
30repair to parking lots.

1(viii) New facility construction costs.

2(ix) Entertainment equipment, including television,
3video and electronic games.

4(x) Other expenses adopted in regulation by the
5department.

6* * *

7(c) Exemption.--A club licensee which has proceeds of less
8than $100,000 in a single calendar month shall be exempt from
9subsection (a)(1.1) and shall not be required to deposit
10proceeds into the fund. A club licensee which has proceeds of
11less than $100,000 in a single calendar month shall distribute
12the proceeds as follows:

13(1) No less than 70% of the proceeds shall be paid to
14organizations for public interest purposes in the calendar
15year in which the proceeds were obtained.

16(2) No more than 30% of the proceeds obtained in a
17calendar year may be retained by a club licensee and used for
18the operational expenses relating to the club licensee under
19subsection (a)(2).

20Section 4. The act is amended by adding sections to read:

21Section 502.1. Contribution.

22The following shall apply:

23(1) Twenty percent of the proceeds from games of chance
24shall be collected by the club licensee for remission to the
25fund.

26(2) Each club licensee shall file with the department,
27on a form prescribed by the department, a games of chance
28report. The report shall be filed with the department by the
2915th day following the end of each calendar month. The report
30shall include the following:

1(i) The total amount of proceeds for all games of
2chance sold by the club licensee in the prior calendar
3month, which shall be calculated by indicating the number
4of each type of game of chance sold and the projected
5proceeds for each type of game.

6(ii) Calculation of the 20% contribution under
7paragraph (1).

8(3) Each club licensee shall remit the contribution for
9deposit into the fund to the department with the monthly
10report.

11Section 708. Penalties and interest on contribution.

12If a club licensee fails to remit the contribution under
13section 502.1, the department may do any of the following:

14(1) Assess the amount due.

15(2) Impose and assess an administrative penalty equal to
165% of the contribution due, but unpaid for each quarter or
17fraction of a quarter that the contribution remains unpaid
18together with interest at the rate established under section
19806 of the act of April 9, 1929 (P.L.343, No.176), known as
20The Fiscal Code, from the time the contribution was due.

21Section 5. This act shall take effect in 60 days.