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
9legislative intent, for definitions, for games of chance
10permitted, for prize limits, for sales limited, for
11regulations of department, for licensing of eligible
12organizations to conduct games of chance, for special
13permits, for club licensee, for distribution of proceeds, for
14records, for raffle tickets, for weekly drawings, for
15applicability, for revocation of licenses, for enforcement,
16for certain persons prohibited, for civil penalties and for
17criminal penalties.

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

20Section 1. Section 102 of the act of December 19, 1988
21(P.L.1262, No.156), known as the Local Option Small Games of
22Chance Act, amended February 2, 2012 (P.L.7, No.2), is amended
23to read:

24Section 102. Legislative intent.

25The General Assembly hereby declares that the playing of

1small games of chance for the purpose of raising funds, by
2certain nonprofit associations, for the promotion of charitable
3or civic purposes, is in the public interest. [In some cases, 
4the proceeds from games of chance may be utilized to support 
5certain operating expenses of certain organizations.]

6It is hereby declared to be the policy of the General
7Assembly that all phases of licensing, operation and regulation
8of small games of chance be strictly controlled, and that all
9laws and regulations with respect thereto as well as all
10gambling laws should be strictly construed and rigidly enforced.

11The General Assembly recognizes the possibility of
12association between commercial gambling and organized crime, and
13wishes to discourage commercialization of small games of chance,
14prevent participation by organized crime and prevent the
15diversion of funds from the purposes herein authorized.

16Section 2. Section 103 of the act, amended February 2, 2012
17(P.L.7, No.2) and October 24, 2012 (P.L.1462, No.184), is
18amended to read:

19Section 103. Definitions.

20The following words and phrases when used in this act shall
21have the meanings given to them in this section unless the
22context clearly indicates otherwise:

23"50/50 drawing." A game in which:

24(1) A participant buys a ticket for a chance to win a
25prize where the winner is determined by a random drawing of
26corresponding tickets sold for that drawing.

27(2) The prize paid to the winner is comprised of one-
28half of the money collected from tickets from the drawing and
29the remaining money retained by the eligible organization for
30distribution in accordance with this act.

1"Affiliated nonprofit organization." An organization
2established by or affiliated with a Major League Baseball,
3National Hockey League, National Basketball Association or Major
4League Soccer team for the purpose of raising funds for charity,
5which is qualified for an exemption under section 501(c)(3) of
6the Internal Revenue Code of 1986 (Public Law 99-514, 26 U.S.C.
7§ 101(c)(3).

8"Bona fide member." Any individual who holds a membership in
9the eligible organization as defined by that organization's
10constitution, charter, articles of incorporation or bylaws.

11"Charitable organization." A not-for-profit group or body of
12persons which is created and exists for the purpose of
13performing a humane service; promoting the good and welfare of
14the aged, poor, infirm or distressed; combating juvenile
15delinquency; or advancing the spiritual, mental, social and
16physical improvement of young men and women.

17"Civic and service association." Any Statewide or branch,
18lodge or chapter of a nonprofit national or State organization
19which is authorized by its written constitution, charter,
20articles of incorporation or bylaws to engage in a civic or
21service purpose within this Commonwealth, which shall have
22existed in this Commonwealth for one year. The term also means a
23similar local nonprofit organization, not affiliated with a
24national or State organization, which is recognized by a
25resolution adopted by the governing body of the municipality in
26which the organization conducts its principal activities. The
27term shall include Statewide or local bona fide sportsmen's and
28wildlife associations, federations or clubs, volunteer fire
29companies, volunteer rescue squads and volunteer ambulance
30associations and bona fide senior citizens organizations. In the

1case of bona fide senior citizens organizations, the licensing
2authority may accept alternative documentation for proof of
3purposes when there are no bylaws or articles of incorporation
4in existence. The term shall also include nonprofit
5organizations which are established to promote and encourage
6participation and support for extracurricular activities within
7the established primary and secondary public, private and
8parochial school systems. Such organizations must be recognized
9by a resolution adopted by the appropriate governing body. In
10the case of organizations associated with the public school
11system, the governing body shall be the school board of the
12school district. In the case of private or parochial school
13organizations, that body shall be either the board of trustees
14or the Archdiocese.

15"Club." An organization that:

16(1) [is licensed to sell liquor under section 404] meets 
17the definition of "club" under section 102 of the act of
18April 12, 1951 (P.L.90, No.21), known as the Liquor Code; 
19[and]

20(2) qualifies as an exempt organization under section
21501(c) or 527 of the Internal Revenue Code of 1986 (Public
22Law 99-514, 26 U.S.C. § 501(c) or 527)[.]; and

23(3) is licensed to sell liquor at retail and has a
24charitable, religious or civic purpose or is organized to
25benefit a political party.

26["Club licensee." A club that holds a license to conduct
27small games of chance.]

28"Daily drawing." A game [of chance] in which a bona fide 
29member selects or is assigned a number for a chance at a prize 
30with the winner determined by random drawing to take place on 

1the [licensed] eligible organization's [licensed] premises 
2during the same operating day. The term includes games [of 
3chance] commonly known as "member sign-in lotteries" and "half-
4and-half lotteries." Nothing in this act shall be construed to 
5prohibit the carrying over of a jackpot where the winning number 
6has not been entered in the game on a particular operating day. 
7Daily drawing winners may be determined with the aid of a 
8passive selection device or reference to drawings conducted by 
9the department pursuant to the act of August 26, 1971 (P.L.351, 
10No.91), known as the State Lottery Law. Daily drawing chances 
11may not be sold for an amount in excess of $1, and no more than 
12one chance per individual may be sold per drawing. [Nothing in 
13this definition shall restrict an eligible organization from 
14conducting more than one drawing per day.]

15"Department." The Department of Revenue of the Commonwealth.

16"Dispensing machine." A device designed exclusively for the
17dispensing of the games of chance authorized by this act,
18including, but not limited to, ticket jars, fish bowls and stamp
19machines. Nothing in this act shall be construed to authorize
20devices commonly known as "slot machines" or "video poker."

21"Eligible organization." A charitable, religious, fraternal 
22or veterans' organization, club[, club licensee] or civic and 
23service association. In order to qualify as an eligible
24organization for purposes of this act, an organization shall
25have been in existence and fulfilling its purposes for one year
26prior to the date of application for a license. The term shall 
27include an affiliated nonprofit organization licensed under 
28section 307.

29"Fraternal organization." A nonprofit organization within
30this Commonwealth which is created and carried on for the mutual

1benefit of its members, has a limited membership and a
2representative form of government and is a branch, lodge or
3chapter of a national or State organization. Such organizations
4shall have been in existence in this Commonwealth and fulfilling
5their purposes for one year prior to the date of application for
6a license.

7"Games of chance." Punchboards, daily drawings, weekly
8drawings, 50/50 drawings, raffles and pull-tabs, as defined in
9this act, provided that no such game shall be played by or with
10the assistance of any mechanical or electrical devices or media
11other than a dispensing machine or passive selection device and
12further provided that the particular chance taken by any person
13in any such game shall not be made contingent upon any other
14occurrence or the winning of any other contest, but shall be
15determined solely at the discretion of the purchaser. This
16definition shall not be construed to authorize any other form of
17gambling currently prohibited under any provision of Title 18 of
18the Pennsylvania Consolidated Statutes (relating to crimes and
19offenses) [or authorized under 4 Pa.C.S. (relating to
20amusements)]. Nothing in this act shall be construed to
21authorize games commonly known as "slot machines" or "video
22poker."

23"Law enforcement official." A municipal police officer, a
24member of the Pennsylvania State Police, the sheriff of a county
25or a deputy sheriff.

26"License." A license to conduct games of chance.

27"Licensed distributor." A distributor of games of chance
28licensed under section 307.

29"Licensing authority." The county treasurer, or in any home
30rule county or city of the first class, where there is no

1elected treasurer, the designee of the governing authority.

2"Major league sports drawing." A 50/50 drawing conducted by
3an affiliated nonprofit organization at a home game of a major
4league sports team in which 50% of the money collected from
5ticket sales from the drawing are offered as the prize and the
6remaining 50% is retained by the affiliated nonprofit
7organization sponsoring the drawing for distribution to
8charitable organizations.

9"Major league sports team." A professional team that is a
10member of Major League Baseball, the National Hockey League, the
11National Basketball Association or Major League Soccer.

12"Municipality." A city, borough, incorporated town or
13township or a home rule municipality formerly classified as a
14city, borough, incorporated town or township.

15"Passive selection device." A device which is used to hold
16or denote the universe of possible winning numbers or entrants
17in a daily drawing or raffle. Such a device may not have the
18capability of being utilized to conduct or aid in the conducting
19of unauthorized or illegal forms of gambling.

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

21"Proceeds." The difference between:

22(1) the actual gross revenue collected by a licensed
23eligible organization from a game of chance; and

24(2) the actual amount of prizes paid by a licensed
25eligible organization from a game of chance, plus the cost to
26purchase games of chance.]

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

28(1) The activities and operations of a nonprofit 
29benevolent, religious, educational, philanthropic, humane, 
30scientific, patriotic, social welfare, social advocacy, 

1public health, public safety, emergency response, 
2environmental or civic objective.

3(2) Initiating, performing or fostering worthy public
4works or enabling or furthering the erection or maintenance
5of public structures.

6(3) Lessening the burdens borne by government or
7voluntarily supporting, augmenting or supplementing services
8which government would normally render to the people.

9(4) Improving, expanding, maintaining or repairing real
10property owned or leased by an eligible organization and
11[relating operational expenses] used for purposes specified
12in paragraphs (1), (2) and (3).

13The term does not include the erection or acquisition of any
14real property, unless the property will be used exclusively for
15one or more of the purposes specified in this definition.

16"Pull-tab." A single folded or banded ticket or a strip
17ticket or card with a face covered to conceal one or more
18numbers or symbols, where one or more of each set of tickets or
19cards has been designated in advance as a winner.

20"Punchboard." A board, placard or other device marked off in
21a grid or columns, in which each section contains a hidden
22number or numbers, or other symbol, which determines the winning
23chances.

24"Raffle." A game [of chance] in which a participant buys a
25ticket for a chance at a prize with the winner determined by a
26random drawing of corresponding ticket stubs to take place at a
27location and date or dates printed upon each ticket. Such games
28[of chance] shall include lotteries but not daily drawings.
29Raffle winners may be determined by reference to drawings
30conducted by the department pursuant to the act of August 26,

11971 (P.L.351, No.91), known as the State Lottery Law.

2"Religious organization." A not-for-profit group or body of
3persons which is created and which exists for the predominant
4purpose of regularly holding or conducting religious activities
5or religious education, without pecuniary benefit to any
6officer, member or shareholder except as reasonable compensation
7for actual services rendered to the organization.

8"Veterans organization." Any congressionally chartered
9organization within this Commonwealth, or any branch or lodge or
10chapter of a nonprofit national or State organization within
11this Commonwealth, the membership of which consists of
12individuals who were members of the armed services or armed
13forces of the United States. The term shall also include home
14associations. Such organizations shall have been in existence in
15this Commonwealth fulfilling their purposes for one year prior
16to the date of application for a license.

17"Weekly drawing." A game [of chance] in which a bona fide
18member selects or receives a number or numbers for a chance at a
19prize with the winner determined by a random drawing to take
20place on the [licensed] eligible organization's [licensed]
21premises at the end of a seven-day period. Nothing in this act 
22shall be construed to prohibit the carrying over of a jackpot 
23where the winning number has not been entered in the game in a 
24particular week. Weekly drawing winners may be determined with
25the aid of a passive selection device or reference to drawings
26conducted by the Department of Revenue pursuant to the act of
27August 26, 1971 (P.L.351, No.91), known as the State Lottery
28Law. Weekly drawing chances may not be sold for an amount in
29excess of $1.

30Section 3. Section 301 of the act, amended October 24, 2012

1(P.L.1462, No.184),is amended to read:

2Section 301. Games of chance permitted.

3Every eligible organization to which a license has been
4issued under the provisions of this chapter may conduct games of
5chance for the purpose of raising funds for public interest
6purposes. [Except as provided in Chapter 5, all proceeds of a 
7licensed eligible organization shall] Proceeds from a game of 
8chance must be used exclusively for public interest purposes, 
9for the purchase of games of chance, for the payment of the 
10license fee or for the payment of the fee for background checks, 
11as required by this act.

12Section 4. Sections 302 and 303 of the act, amended February
132, 2012 (P.L.7, No.2), are amended to read:

14Section 302. Prize limits.

15[(a) Individual prize limit.--Except as provided under 
16subsections (d) and (d.1), the maximum prize which may be
17awarded for any single chance shall be $1,000.

18(b) Aggregate prize limit.--No more than $25,000 in prizes
19shall be awarded from games of chance by a licensed eligible
20organization in any seven-day period.

21(c) Raffle prize limit.--Up to $10,000 in prizes may be
22awarded in raffles in any calendar month.

23(c.1) Total limit.--All prizes awarded under this section
24shall be subject to the aggregate prize limits under subsection
25(b).]

26(a) Individual prize limit.--The maximum cash value which
27may be awarded for any single chance shall be $500.

28(b) Weekly limit.--No more than $5,000 in cash or
29merchandise shall be awarded by an eligible organization in any
30seven-day period.

1(c) Limit on raffles.--No more than $5,000 in cash or
2merchandise shall be awarded in raffles in any calendar month.

3(d) Exception for raffles.--[Notwithstanding subsection (b) 
4or (c), a licensed] An eligible organization may conduct a
5raffle and award a prize or prizes valued in excess of [$1,000] 
6$500 each only under the following conditions:

7(1) The licensing authority has issued a special permit
8for the raffle under section 308.

9(2) [A licensed] An eligible organization shall be
10eligible to receive no more than [eight] two special permits
11in any licensed [term] year except that a volunteer fire,
12ambulance or rescue organization [that is not a club 
13licensee] shall be eligible to receive [ten] no more than 
14three special permits in any licensed [term] year.

15(3) Only one raffle may be conducted under each special
16permit [issued under section 308].

17(4) [Except as provided under subsection (d.1), the] The 
18total cash value of all prizes [awarded under this 
19subsection] shall be no more than $100,000 per calendar year.

20[(d.1) Additional award.--A volunteer fire, ambulance or 
21rescue organization may, in addition to the total under 
22subsection (d)(4), award up to $50,000 from raffles which shall 
23not be subject to the aggregate limit under subsection (b), (c) 
24or (d).]

25(e) Limit on daily drawings.--Daily drawings shall be
26governed by the prize limitations under subsections (a) and (b).
27An eligible organization may not conduct daily drawings during a
28period when a weekly drawing is taking place.

29(f) Daily drawing carryover.--The prize limitation contained
30in subsections (a) and (b) may be exceeded by a daily drawing

1under the following circumstances: a daily drawing may award a
2prize with a cash value in excess of [$1,000] $500 if such prize
3is the result of a carryover of a drawing which resulted from
4the winning number in such drawing not being among the eligible
5entrants in such drawings. Nothing contained herein shall
6authorize the prize limitation as contained in subsections (a)
7and (b) to be exceeded as a result of a failure to conduct a
8drawing on an operating day during which chances were sold for a
9daily drawing or for a daily drawing for which chances were sold
10in excess of $1 or for which more than one chance was sold to an
11eligible participant.

12(g) Additional exception.--When a daily drawing or weekly
13drawing is set up or conducted in such a manner as to pay out or
14award 100% of the gross revenues generated from such drawing,
15the limitation contained in subsection (b) shall not apply.

16(h) Weekly drawing carryover exception.--Weekly drawings
17shall be governed by the prize limitation contained in
18subsection (b). The prize limitation contained in subsection (b)
19may be exceeded by a weekly drawing under the following
20circumstances: a weekly drawing may award a prize where the cash
21value is in excess of [$25,000] $5,000 if such prize is the
22result of a carryover of a drawing or drawings which resulted
23from the winning number or numbers in such drawing or drawings
24not being among the eligible entrants in such drawings. Nothing
25contained in this chapter shall authorize the prize limitation 
26under subsection (b) to be exceeded as a result of a failure to
27conduct a drawing for a week during which chances were sold for
28a weekly drawing or for a weekly drawing for which chances were
29sold in excess of $1. An eligible organization may not conduct 
30weekly drawings during a period when a daily drawing is taking 

1place.

2Section 303. Sales limited.

3(a) General rule.--No person shall sell, offer for sale or
4furnish games of chance for use within this Commonwealth except
5to an eligible organization or licensed distributor under this
6chapter.

7(b) Limitation.--No game of chance, other than a raffle
8under section 302(d), sold, offered for sale or furnished [to a 
9licensed eligible organization] for use within this Commonwealth
10shall contain, permit, depict or designate a prize having a
11[prize limit] cash value in excess of [$1,000] $500.

12Section 5. Section 306 of the act, amended October 24, 2012
13(P.L.1462, No.184), is amended to read:

14Section 306. Regulations of department.

15(a) Authorization.--The department shall promulgate
16regulations to:

17(1) Impose minimum standards and restrictions applicable
18to games of chance manufactured for sale in this
19Commonwealth, which may include standards and restrictions
20which specify the maximum number of chances available to be
21sold for any single game of chance or prize and such other
22standards and restrictions as the department deems necessary
23for the purposes of this chapter. The department shall
24consider standards adopted by the National Association of
25Gambling Regulatory Agencies and other standards commonly
26accepted in the industry.

27(2) Establish procedures by which manufacturers may
28register and distributors of games of chance may apply for
29licensure on forms which the department shall provide.
30[Procedures shall include a requirement that manufacturer and 

1distributor applicants provide criminal history record 
2information obtained from the Pennsylvania State Police under 
318 Pa.C.S. § 9121(b) (relating to general regulations) for 
4each officer and manager of the manufacturer's or 
5distributor's organization and for any other individual 
6specified by the department. As used in this paragraph, the 
7term "criminal history record information" has the meaning 
8given in 18 Pa.C.S. § 9102 (relating to definitions).]

9(3) Provide for the suspension or revocation of
10distribution licenses or manufacturer certificates for
11violations of this act or regulations of the department.

12(4) Carry out other provisions of this act.

13(b) Limitation on recordkeeping requirements.--This section
14shall not be construed to authorize the department to promulgate
15regulations providing for recordkeeping requirements for
16[licensed] eligible organizations which require unreasonable or
17unnecessary information or a repetitious listing of information.
18The department shall strive to keep such recordkeeping
19requirements from being an undue hardship or burden on
20[licensed] eligible organizations. [Except as provided under 
21section 701(b), the] The department may not require the
22retention of records for a period in excess of two years.

23[(c) Reporting requirements.--Each eligible organization
24which has proceeds in excess of $2,500 in a calendar year shall
25submit an annual report to the department including:

26(1) Prizes awarded as required under section 335 of the 
27act of March 4, 1971 (P.L.6, No.2), known as the Tax Reform 
28Code of 1971.

29(2) Amounts expended for public interest purposes.]

30Section 6. Section 307 of the act, amended February 2, 2012

1(P.L.7, No.2) and October 24, 2012 (P.L.1462, No.184), is
2amended to read:

3Section 307. Licensing of eligible organizations to conduct 
4games of chance.

5(a) License required.--No eligible organization shall
6conduct or operate any games of chance unless such eligible
7organization has obtained and maintains a valid license [or 
8limited occasion] license issued pursuant to this section. An 
9auxiliary group of [a licensed] an eligible organization shall
10be eligible to conduct games of chance using the license issued
11to the eligible organization provided that the auxiliary group
12or groups are listed on the application and license of the
13eligible organization. [An auxiliary group is not eligible to 
14obtain a license or a limited occasion license.] No additional
15licensing fee shall be charged for an auxiliary group's
16eligibility under this chapter. Auxiliary groups shall not
17include branches, lodges or chapters of a Statewide
18organization.

19(b) Issuance and fees.--The licensing authority shall
20license, upon application, within 30 days any eligible
21organization meeting the requirements for licensure contained in
22this chapter to conduct and operate games of chance at such
23locations within the county or in such manner as stated on the
24application as limited by subsection (b.1). The license fee to
25be charged to each eligible organization shall be $100, except
26for limited occasion licenses which shall be $10. Licenses shall
27be renewable annually upon the anniversary of the date of issue.
28[The license fee shall be used by the licensing authority to 
29administer this act.]

30(b.1) Location of small games of chance.--

1[(1) Except as otherwise provided in this section, a
2licensed eligible organization, except a limited occasion
3licensee, may conduct small games of chance at a licensed
4premises. The licensed premises shall be indicated on the
5eligible organization's license application. Only one license
6shall be issued per licensed premises. Except as provided
7under paragraph (4), a licensed eligible organization may not
8share a licensed premises with another licensed eligible
9organization; and no licensed eligible organization may
10permit its premises to be used for small games of chance by
11another licensed eligible organization.]

12(2) Where there exists a location or premises which is
13the normal business or operating site of the eligible
14organization and the location or premises is owned or leased
15by that eligible organization to conduct its normal business,
16that site shall be the eligible organization's licensed
17premises. If that location consists of more than one
18building[, the eligible organization shall identify the 
19building that will be designated the licensed premises.] and 
20the eligible organization wishes to conduct its games in a 
21different building at that location from the one that is 
22listed on its application and license, the eligible 
23organization must notify in writing the district attorney and 
24the licensing authority of the change in building site and 
25the dates and times that will be affected.

26(3) [When an eligible organization does not own or lease
27a specific location to conduct its normal business, the
28eligible organization may make arrangements that are
29consistent with this act to establish a licensed premises,
30including leasing a premise under a written agreement for a

1rental; however, the rental may not be determined by either
2the amount of receipts realized from the conduct of games of
3chance or the number of people attending. An eligible
4organization may lease a facility for a banquet in connection
5with the serving of a meal based on a per-head charge.] If an 
6eligible organization does not own or lease a specific 
7location to conduct its normal business, the eligible 
8organization may use another eligible organization's premises 
9to conduct its games or may make other arrangements that are 
10consistent with this act, including leasing a premise under a 
11written agreement for a rental which is not determined by 
12either the amount of receipts realized from the playing of 
13games of chance or the number of people attending. An 
14eligible organization may lease a facility for a banquet in 
15connection with the serving of a meal based on a per-head 
16charge. If the eligible organization changes the site of its 
17games from that which is listed on its application and 
18license, the eligible organization must notify in writing the 
19district attorney and licensing authority of the change in 
20its games' site and dates and times that will be affected.

21(3.1) Notwithstanding paragraphs (1), (2) and (3), if an
22eligible organization is unable to conduct games of chance at
23the location listed on its application and license due to
24natural disaster, fire or other circumstance that renders the
25location unusable, the eligible organization may submit a
26written request to the district attorney to conduct games of
27chance in a different location, including the licensed
28premises of another eligible organization. The request must
29include the change in the location and the dates and times
30the games of chance will be operated at the alternative

1location. The district attorney shall establish a limit on
2the duration of the authorization to conduct games of chance
3at the alternative location. Following the expiration of the
4authorization period, the eligible organization must return
5to the location specified in its application and license or
6apply to the licensing authority for a new permanent location
7for the conduct of games of chance. The district attorney may
8approve or deny the request or stipulate additional
9requirements as a condition of approval. If an eligible
10organization permits another eligible organization to use its
11licensed premises to conduct games of chance under this
12paragraph, the eligible organization shall cease its
13operation of games of chance during the time the eligible
14organization utilizing its premises is conducting its games
15of chance.

16(3.2) Notwithstanding paragraphs (1), (2) and (3), the
17following eligible organizations established to raise funds
18shall not be required to conduct a 50/50 drawing or a raffle
19at a licensed premises or to own, lease or establish a
20licensed premises:

21(i) A nonprofit sports team.

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

23sports team or organization.

24[(4) An eligible organization that has obtained a
25limited occasion license under subsection (b.3) may use
26another eligible organization's licensed premises to conduct
27its games of chance. When a licensed eligible organization is
28permitting a limited occasion licensee to use its licensed
29premises for purposes of games of chance, it shall cease the
30operation of its own games of chance during the period that

1the limited occasion licensee is conducting its games on the
2premises.]

3(5) For purposes of major league sports drawings, the
4facility at which a major league sports team conducts its
5games shall constitute a premises for purposes of this act.

6(b.2) Off-premises games of chance.--Notwithstanding any
7other provisions of this section, [all of the following apply:

8(1) A licensed] an eligible organization may conduct
9games of chance at a location off its premises when the games 
10of chance are part of an annual carnival, fair, picnic or
11banquet held or participated in by that [licensed] eligible
12organization on a historical basis. The [licensed] eligible
13organization must notify, in writing, the district attorney
14and licensing authority of the location, date and times of
15the event where it will be conducting small games of chance.

16[(2) Raffle tickets may be sold off the licensed
17premises in a municipality which has adopted the provisions
18of this act by an affirmative vote in a municipal referendum.
19A licensed eligible organization which plans to sell raffle
20tickets in a municipality located in a county other than the
21county in which the eligible organization is licensed shall
22notify that county's district attorney and licensing
23authority as to the location and the dates that the licensed
24eligible organization plans to sell raffle tickets.]

25(b.3) Limited occasion licenses.--Eligible organizations
26which do not own their own premises or which do not lease a
27specific location to conduct their normal business may apply for
28a limited occasion license to conduct games of chance on not
29more than three occasions covering a total of seven days during
30a licensed year. A limited occasion license entitles an eligible

1organization to conduct no more than two raffles during a
2licensed year where prizes may not exceed the established limits
3for regular monthly raffles. Holders of a limited occasion
4license may not apply or be granted any other license or special
5permit under this act. No holder of a regular license or special
6permit under this act shall apply or be granted a limited
7occasion license.

8(b.4) Gambling facility prohibited.--It shall be unlawful
9for a person, corporation, association, partnership or other
10business entity to offer for rent or offer for use a building or
11facility to be used exclusively for the conduct of games of
12chance. It shall also be unlawful for any eligible organization
13to lease under any terms a building or facility which is used
14exclusively for the conduct of small games of chance.

15(c) Display.--Licenses issued pursuant to this section shall
16be publicly displayed at the site where small games of chance
17are conducted.

18(d) Operation.--Each licensed eligible organization shall be 
19prohibited from the following:

20(1) Permitting any person under 18 years of age to
21operate or play games of chance.

22(2) Permitting any person who has been convicted of a 
23felony in a Federal or State court within the past five years 
24or has been convicted in a Federal or State court within the 
25past ten years of a violation of the act of July 10, 1981 
26(P.L.214, No.67), known as the Bingo Law, or of this act to 
27manage, set up, supervise or participate in the operation of 
28games of chance.

29(3) Paying any compensation to any person for conducting
30any games of chance. Games of chance may only be conducted by

1managers, officers, directors, bar personnel and bona fide
2members of the eligible organization.

3(4) Conducting games of chance on any premises other 
4than on the licensed premises or as otherwise provided by
5this chapter.

6(5) Leasing the licensed premises under either an oral
7or a written agreement for a rental which is determined by
8either the amount of receipts realized from the playing of
9games of chance or the number of people attending, except
10that an eligible organization may lease a facility for a
11banquet where a per head charge is applied in connection with
12the serving of a meal. An eligible organization shall not
13lease such premises from any person who has been convicted of
14a violation of this act [or the Bingo Law] within the past
15ten years.

16(6) Purchasing games of chance, other than raffles,
1750/50 drawings, daily drawings and weekly drawings, from any 
18person other than a registered manufacturer or licensed 
19distributor approved by the department.

20(7) Permitting its premises to be used for small games
21of chance by another licensed eligible organization at the
22same time that it is conducting small games of chance on the
23premises. If a licensed eligible organization is permitting
24another licensed eligible organization to use its premises
25for purposes of small games of chance, it must cease the
26operation of its own small games of chance during the period
27that the other licensed eligible organization is conducting
28its games on the premises.

29(8) Selling raffle tickets off the licensed premise in
30any municipality in this Commonwealth which has adopted the

1provisions of this act by an affirmative vote in a municipal
2referendum. A licensed eligible organization which plans to
3sell raffle tickets in a municipality located in a county
4other than the county in which the eligible organization is
5licensed must notify that county's district attorney and
6licensing authority as to the location and the dates that the
7eligible organization plans to sell raffle tickets.

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

14(e) Application for license.--Each eligible organization
15shall apply to the licensing authority for a license on a form
16to be prescribed by the Secretary of Revenue. [For a club 
17license, the application and each renewal application shall 
18include the most recent annual report filed by the club licensee 
19under Chapter 5.] The form shall contain an affidavit to be
20affirmed by the executive officer or secretary of the eligible
21organization stating that:

22(1) No person under 18 years of age will be permitted by
23the eligible organization to operate or play games of chance.

24(2) The facility in which the games of chance are to be
25played has adequate means of ingress and egress and adequate
26sanitary facilities available in the area.

27(3) The eligible organization is not leasing such
28premises from the owner thereof under an oral agreement, nor
29is it leasing such premises from the owner thereof under a
30written agreement at a rental which is determined by the

1amount of receipts realized from the playing of games of
2chance or by the number of people attending, except that an
3eligible organization may lease a facility for a banquet
4where a per head charge is applied in connection with the
5serving of a meal.

6[(e.1) Proceedings.--Proceedings before the licensing
7authority are subject to 2 Pa.C.S. Chs. 5 Subch. B (relating to
8practice and procedure of local agencies) and 7 Subch. B
9(relating to judicial review of local agency action).]

10(f) List of licensees.--The licensing authority, on a
11semiannual basis, shall send a copy of all licensees to the
12department.

13(g) List of municipalities.--The licensing authority shall
14include with any license or renewal license issued to an
15eligible organization, an up-to-date listing of those
16municipalities within the licensing county which have approved
17the referendum question on small games of chance.

18[(h) Background checks.--Each application for a license 
19submitted by an eligible organization which has proceeds in 
20excess of $2,500 in a year shall include the results of a 
21criminal history record information check obtained from the 
22Pennsylvania State Police, as defined in 18 Pa.C.S. § 9102 
23(relating to definitions) and permitted by 18 Pa.C.S. § 9121(b) 
24(relating to general regulations), for the executive officer and 
25secretary of the eligible organization making the application 
26for a license or any other person required by the department.]

27Section 7. Section 308 of the act, amended February 2, 2012
28(P.L.7, No.2), is amended to read:

29Section 308. Special permits.

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

1special permit for each raffle in which the licensed eligible 
2organization proposes to award individual prizes having a cash 
3value in excess of [$1,000] $500. The licensing authority may
4establish and collect a fee not to exceed $25 for the issuance
5of special permits under this section.

6(b) Permit application.--Each special permit application
7shall specify the location where the actual drawing will be
8held, the number of chances to be sold, the price per chance and
9the cash value of the prize to be awarded.

10Section 8. Chapter 5 heading of the act, added February 2,
112012 (P.L.7, No.2), is amended to read:

12CHAPTER 5

13[CLUB LICENSES]

14(Reserved)

15Section 9. Sections 501, 502, 503, 504 and 505 of the act,
16added February 2, 2012 (P.L.7, No.2), are repealed:

17[Section 501. Club licensee.

18(a) Report.--

19(1) Beginning in 2013, a club licensee shall submit
20semiannual reports to the department for the preceding six-
21month period on a form and in a manner prescribed by the
22department.

23(2) The report must be filed under oath or affirmation
24of an authorized officer of the club licensee.

25(3) The report shall include all of the following
26information:

27(i) The proceeds received by the club licensee from
28each game of chance conducted, itemized by week.

29(ii) The amount of prizes paid from all games of
30chance, itemized by week.

1(iii) Other costs incurred related to the conduct of 
2games of chance.

3(iv) The verification of amounts distributed for 
4public interest purposes itemized under section 
5502(a) (1), itemized by the recipient.

6(v) An itemized list of expenditures made or amounts 
7retained and expenditures under section 502(a) (2).

8(vi) The address and the county in which the club 
9licensee is located.

10(vii) Other information or documentation required by 
11the department.

12(b) Distribution.--The department shall provide a copy of
13the report to the Bureau of Liquor Control Enforcement.

14(c) Posting.--The reports under subsection (a) shall be
15published on the department's Internet website.

16Section 502. Distribution of proceeds.

17(a) Distribution.--The proceeds from games of chance
18received by a club licensee shall be distributed as follows:

19(1) No less than 70% of the proceeds shall be paid to
20organizations for public interest purposes in the calendar
21year in which the proceeds were obtained.

22(2) No more than 30% of the proceeds obtained in a
23calendar year may be retained by a club licensee and used for
24the following operational expenses relating to the club
25licensee:

26(i) Real property taxes.

27(ii) Utility and fuel costs.

28(iii) Heating and air conditioning equipment or
29repair costs.

30(iv) Water and sewer costs.

1(v) Property or liability insurance costs.

2(vi) Mortgage payments.

3(vii) Interior and exterior repair costs, including
4repair to parking lots.

5(viii) New facility construction costs.

6(ix) Entertainment equipment, including television,
7video and electronic games.

8(x) Other expenses adopted in regulation by the
9department.

10(a.1) Amounts retained.--Amounts retained by a club licensee
11under subsection (a)(2) shall be expended within the same
12calendar year unless the club licensee notifies the department
13that funds are being retained for a substantial purchase or
14project. Notification shall include a description of the
15purchase or project, the cost and the anticipated date of the
16purchase or project.

17(b) Prohibition.--

18(1) Proceeds shall not be used for wages, alcohol or
19food purchases or for the payment of any fine levied against
20the club licensee.

21(2) An officer or employee of a club licensee who
22operates the game of chance shall not participate in the
23game. This paragraph shall not apply to a raffle.

24Section 503. Records.

25A club licensee shall maintain records as required by this
26act or by the department, including invoices for games of chance
27purchased. Records necessary to conduct an audit under section
28702(b) shall be made available to the Bureau of Liquor Control
29Enforcement or other entity authorized to enforce this act.

30Section 504. Raffle tickets.

1A club licensee shall maintain records relating to the 
2printing or purchase of raffle tickets. Records shall include a 
3receipt or invoice from the place of purchase that shows the 
4cost and number or amount of tickets purchased.

5Section 505. Weekly drawings.

6A club licensee shall maintain records relating to the
7printing or purchase of materials to be used for weekly
8drawings. Records shall include a receipt or invoice from the
9place of purchase that shows the cost and number or amount of
10materials purchased.]

11Section 10. Section 506 of the act, added October 24, 2012
12(P.L.1462, No.184), is repealed:

13[Section 506. Applicability.

14This chapter shall only apply to eligible organizations that
15have a club license.]

16Section 11. Section 701 of the act, amended February 2, 2012
17(P.L.7, No.2), is amended to read:

18Section 701. Revocation of licenses.

19(a) Grounds.--The [following shall be grounds for 
20suspension, revocation or nonrenewal of a license] licensing 
21authority shall revoke or refuse to renew the license of an 
22eligible organization if the district attorney finds upon 
23complaint and investigation that:

24(1) Any of the [proceeds] funds derived from the
25operation of games of chance [by an eligible organization]
26are used for any purpose other than for:

27(i) public interest purposes;

28(ii) the purchase of games of chance; or

29(iii) a purpose permitted by [Chapter 5] this act.

30[(1.1) Any of the funds derived from the operation of

1games of chance by a club licensee are used in a manner that
2does not comply with section 502.]

3(2) Any person under 18 years of age is operating or
4playing games of chance.

5(3) The eligible organization has permitted any person 
6who has been convicted of a felony in a Federal or State 
7court within the past five years or has been convicted in a 
8Federal or State court within the past ten years of a 
9violation of the act of July 10, 1981 (P.L.214, No.67), known 
10as the Bingo Law, or of this act, to manage, set up, 
11supervise or participate in the operation of games of chance.

12(4) The facility in which the games of chance are played
13does not have adequate means of ingress and egress and does
14not have adequate sanitary facilities available in the area.

15(5) Any person or persons other than a manager, officer,
16director, bar personnel or a bona fide member of an eligible
17organization have been involved in managing, setting up,
18operating or running games of chance.

19(6) Any person has received compensation for conducting
20games of chance.

21(7) Any prize has been awarded in excess of the limits
22permitted under this act.

23(8) The eligible organization has violated any condition
24of a special permit issued pursuant to section 308.

25(9) The eligible organization conducts the games of
26chance under a lease which calls for:

27(i) leasing such premises from the owner thereof
28under an oral agreement; or

29(ii) leasing such premises from the owner thereof
30under a written agreement at a rental which is determined

1by the amount of receipts realized from the playing of
2games of chance.

3(10) False or erroneous information was provided in the
4original application [or in any information provided to the 
5licensing authority or the department in any report].

6(11) An eligible organization has been convicted of a
7violation of this act as evidenced by a certified record of
8the conviction.

9(12) The eligible organization has permitted another
10eligible organization to conduct games of chance on its
11licensed premises without suspending its own operation of
12games of chance during the period that the other licensed
13eligible organization is conducting its games on the
14premises.

15[(13) A club licensee has failed to file an accurate
16report under section 501(a).

17(14) A club licensee has failed to comply with section
18502.

19(15) Failure to file reports under section 501.]

20(b) Production of records.--[The district attorney may
21require licensees to produce their books, accounts and records
22relating to the conduct of games of chance in order to determine
23if a violation of this act has occurred. Licensees shall also be
24required, upon request, to provide their license, books,
25accounts and records relating to the conduct of games of chance
26to the licensing authority, the Bureau of Liquor Control 
27Enforcement or to a law enforcement agency or official. A club 
28licensee shall retain records for a period of five years.] The 
29district attorney may require licensees to produce their books, 
30accounts and records relating to the conduct of games of chance 

1in order to determine whether a license should be revoked or 
2renewal of the license denied. Licensees shall be required to 
3produce their license, books, accounts and records relating to 
4the conduct of games of chance to other law enforcement 
5officials upon proper request.

6Section 12. Section 702 of the act, amended February 2, 2012
7(P.L.7, No.2) and October 24, 2012 (P.L.1462, No.184), is
8amended to read:

9Section 702. Enforcement.

10[(a) Licensing authority.--The licensing authority may
11enforce the provisions of this act and may impose the penalties
12under subsection (d).

13(b) Bureau of Liquor Control Enforcement.--If the licensee 
14is a club licensee, the Bureau of Liquor Control Enforcement may 
15enforce the provisions of this act in accordance with subsection 
16(g). An administrative law judge under section 212 of the act of 
17April 12, 1951 (P.L.90, No.21), known as the Liquor Code, may 
18impose the penalties under subsection (d) following the issuance 
19of a citation by the bureau.

20(c) Random audits.--The Bureau of Liquor Control Enforcement
21shall conduct annual random audits of 5% of all club licensees.

22(d) Powers and duties.--The licensing authority, or, in the
23case of a club licensee, the Bureau of Liquor Control
24Enforcement, may impose the following penalties:

25(1) A civil penalty.

26(2) Suspension or revocation of the license.

27(e) District attorney.--The district attorney of the county
28that issued the license shall investigate alleged violations of
29this act. If the district attorney finds probable cause to
30believe that a criminal violation has occurred, the district

1attorney may file criminal charges and prosecute the complaint
2against the alleged violator in the court of common pleas of the
3county except in counties of the first class where the complaint
4may be filed in the municipal court.

5(f) Law enforcement officials.--Nothing in this act may
6restrict or limit the power of a State, county or local law
7enforcement official to conduct investigations and file criminal
8charges under this act.

9(g) General rule.--

10(1) Except as provided in paragraph (2), a violation of
11this act by a club licensee shall not constitute a violation
12of the Liquor Code.

13(2) If a club licensee has committed three or more
14violations of this act, the Bureau of Liquor Control
15Enforcement may enforce a violation of this act as a
16violation of the Liquor Code.

17(3) A violation of this act shall not constitute a
18violation of the Liquor Code for the purposes of section
19471(c) of the Liquor Code.]

20(a) District attorney.--A district attorney shall
21investigate alleged violations of this act. If the district
22attorney finds probable cause to believe that a violation has
23occurred, he may file a complaint against the alleged violator
24in the court of common pleas of the county, except in counties
25of the first class where the complaint may be filed in the
26municipal court, and shall prosecute the complaint in the manner
27provided by law.

28(b) Other law enforcement officials.--Nothing in this act
29shall be interpreted to restrict the power of State, county or
30local law enforcement officials to conduct investigations and

1enforce this act.

2Section 13. Section 705 of the act, amended February 2, 2012
3(P.L.7, No.2), is amended to read:

4Section 705. Certain persons prohibited.

5No [licensed] distributor nor any person who has been 
6convicted of a felony or of a violation of the act of July 10, 
71981 (P.L.214, No.67), known as the Bingo Law, or of this act or 
8of any comparable State or Federal law shall have a pecuniary 
9interest in the operation or in proceeds.

10Section 14. Section 706 of the act, added February 2, 2012 
11(P.L.7, No.2), is repealed:

12[Section 706. Civil penalties.

13(a) Penalty.--An eligible organization, other than a club
14licensee, that violates the provisions of this act shall be
15subject to the following civil penalties:

16(1) For an initial violation, up to $500.

17(2) For a second violation, up to $1,000.

18(3) For a third or subsequent violation, up to $1,500.

19(b) Club licensee.--A club licensee that violates the
20provisions of this act shall be subject to the following civil
21penalties:

22(1) For an initial violation, up to $800.

23(2) For a second violation, up to $1,000.

24(3) For a third or subsequent violation, up to $2,000.

25(c) Records.--The intentional or willful failure of a club
26licensee to provide accurate records shall result in a license
27suspension of a minimum of six months.]

28Section 15. Section 707 of the act, amended February 2, 2012 
29(P.L.7, No.2), is amended to read:

30Section 707. Criminal penalties.

1(a) Eligible organizations [and club licensees].--Any
2eligible organization violating the provisions of this act shall
3be guilty of a summary offense and, upon conviction thereof,
4shall be sentenced to pay a fine not exceeding $1,000 for a
5first offense [and $1,500 for a subsequent offense]. In 
6addition:

7(1) For a first offense, the eligible organization shall
8forfeit the license to conduct games of chance issued to the
9eligible organization for [a period of not more than 30 days] 
10the remainder of the licensing period or six months, 
11whichever is longer.

12(2) For a second offense, the eligible organization 
13shall forfeit its license for [a period of not less than 30 
14days nor more than 180 days] the remainder of the current 
15licensing period and shall be ineligible to be licensed for 
16the following licensing period.

17(3) For a third or subsequent offense [within three 
18years of the first offense], the eligible organization shall
19forfeit its license and be ineligible for a license renewal
20for 30 months thereafter.

21(b) Individuals.--Any person who conducts or assists in the
22conducting of games of chance in violation of the provisions of
23this act is guilty of a summary offense for a first violation. A
24second violation of this act shall be punishable as a
25misdemeanor of the third degree. A third or subsequent violation
26shall be punishable as a misdemeanor of the first degree.

27(c) Distributors and manufacturers.--Any person who
28distributes games of chance without a license or in violation of
29any provision of this act or applicable regulations, and any
30manufacturer of games of chance who delivers games of chance for

1sale or distribution in this Commonwealth who fails to [register 
2and] obtain a permit therefor is guilty of a misdemeanor of the
3first degree, provided that no license or permit shall be
4required for the manufacture or distribution of raffle tickets.

5(d) Rigging.--A person commits a misdemeanor of the first
6degree if, with intent to prevent a game of chance from being
7conducted in accordance with the requirements of this act or the
8rules and usages governing the game of chance, he:

9(1) confers or offers or agrees to confer any benefit
10upon or threatens any injury to a participant or other person
11associated with the game of chance;

12(2) tampers with any person or game of chance; or

13(3) solicits, accepts or agrees to accept any benefit.

14(e) Contingent fees.--Any person who distributes,
15manufactures or operates a small game of chance and who
16requires, for equipment furnished or to play a game of chance,
17payment equal to a percentage of the total winnings of any game
18of chance commits a misdemeanor of the first degree.

19Section 16. This act shall take effect in 60 days.