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
9regulation of department, for licensing of eligible
10organizations to conduct games of chance, for club licensee
11and for distribution of proceeds.

12The General Assembly of the Commonwealth of Pennsylvania
13hereby enacts as follows:

14Section 1.  Sections 306(c) and 307(b.1)(3.2), (b.2) and
15(d)(3) of the act of December 19, 1988 (P.L.1262, No.156), known
16as the Local Option Small Games of Chance Act, amended October
1724, 2012 (P.L.1462, No.184), are amended to read:

18Section 306.  Regulations of department.

19* * *

20(c)  Reporting requirements.--Each eligible organization
21which has proceeds in excess of [$2,500] $100,000 in a calendar
22year shall submit an annual report to the department including:

1(1)  Prizes awarded as required under section 335 of the 
2act of March 4, 1971 (P.L.6, No.2), known as the Tax Reform 
3Code of 1971.

4(2)  Amounts expended for public interest purposes.

5Section 307.  Licensing of eligible organizations to conduct
6games of chance.

7* * *

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

9* * *

10(3.2)  Notwithstanding paragraphs (1), (2) and (3), the
11following eligible organizations established to raise funds
12shall not be required to conduct a 50/50 drawing or a raffle
13at a licensed premises or to own, lease or establish a
14licensed premises:

15(i)  A nonprofit sports team.

16(ii)  A primary or secondary school-sponsored club,
17sports team or organization.

18(iii)  A volunteer fire company, volunteer ambulance
19service or volunteer rescue company as defined in 35
20Pa.C.S. § 7802 (relating to definitions).

21(b.2)  Off-premises games of chance.--Notwithstanding any
22other provisions of this section, all of the following apply:

23(1)  A licensed eligible organization may conduct games
24of chance at a location off its premises when the games of 
25chance are part of an annual carnival, fair, picnic or
26banquet held or participated in by that licensed eligible
27organization on a historical basis. The licensed eligible
28organization must notify, in writing, the district attorney
29and licensing authority of the location, date and times of
30the event where it will be conducting games of chance.

1(2)  Raffle tickets may be sold off the licensed premises
2in a municipality which has adopted the provisions of this
3act by an affirmative vote in a municipal referendum. [A
4licensed eligible organization which plans to sell raffle
5tickets in a municipality located in a county other than the
6county in which the eligible organization is licensed shall
7notify that county's district attorney and licensing
8authority as to the location and the dates that the licensed
9eligible organization plans to sell raffle tickets.]

10* * *

11(d)  Operation.--Each licensed eligible organization shall be 
12prohibited from the following:

13* * *

14(3)  Paying any compensation to any person for conducting
15any games of chance. [Games of chance may only be conducted
16by managers, officers, directors, bar personnel and bona fide
17members of the eligible organization.]

18* * *

19Section 2.  Sections 501(a)(1) and 502(a) of the act, added
20February 2, 2012 (P.L.7, No.2), are amended to read:

21Section 501.  Club licensee.

22(a)  Report.--

23(1)  Beginning in 2013, a club licensee shall submit
24semiannual reports to the department for the preceding six-
25month period on a form and in a manner prescribed by the
26department if the proceeds from small games of chance during 
27the preceding six-month period exceed $50,000.

28* * *

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%] 50% 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%] 50% 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* * *

24Section 3.  This act shall take effect in 60 days.