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
9the definitions of "daily drawing," "games of chance" and
10"law enforcement official," "weekly drawing"; adding
11definitions of "a night at the races," "cash or merchandise
12bash," "coin auction," "monthly drawing," "selective raffle,"
13"Texas hold 'em card tournament" and "vertical wheel game";
14further providing for an additional exception to prize
15limits; providing for a monthly drawing and carryover
16exception; permitting concurrent operation of daily, weekly
17and monthly drawings; permitting eligible organizations to
18impose a penalty of up to 50% of the amount of the prize if
19winner not present at time of drawing; further providing for
20reporting requirements; repealing provisions relating to
21location of games of chance, for off-premises games of chance
22and limited occasion licenses; further providing for
23operation of games of chance with certain repeals; further
24providing for background checks, for distribution of certain
25reports, for distribution of proceeds, for records, for
26revocation of licenses, for enforcement authority, for powers
27and duties, and abrogating regulations.

28The General Assembly of the Commonwealth of Pennsylvania
29hereby enacts as follows:

30Section 1. The definitions of "daily drawing," "games of

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

7Section 103. Definitions.

8The following words and phrases when used in this act shall
9have the meanings given to them in this section unless the
10context clearly indicates otherwise:

11* * *

12"A night at the races." A game in which a participant places
13a wager on a prerecorded horse race.

14* * *

15"Cash or merchandise bash." A game of chance in which a
16participant purchases a ticket or tickets to attend an event
17during which a random drawing of tickets occurs at certain timed
18intervals. The winner of the cash or merchandise prize is
19determined by a corresponding ticket number.

20* * *

21"Coin auction." A game in which a participant buys a
22numbered paddle for a chance to bid on a donated prize with the
23winner determined by a random drawing of corresponding numbers.

24"Daily drawing." A game of chance in which a bona fide 
25member selects or is assigned a number for a chance at a prize 
26with the winner determined by random drawing to take place [on 
27the licensed eligible organization's licensed premises] during 
28the same operating day. The term includes games of chance 
29commonly known as "member sign-in lotteries" and "half-and-half 
30lotteries." Daily drawing winners may be determined with the aid 

1of a passive selection device or reference to drawings conducted 
2by the department pursuant to the act of August 26, 1971 
3(P.L.351, No.91), known as the State Lottery Law. Daily drawing 
4chances may not be sold for an amount in excess of $1, and no 
5more than one chance per individual may be sold per drawing. 
6Nothing in this definition shall restrict an eligible 
7organization from conducting more than one drawing per day. 
8After the daily drawing is held a bona fide member may select a 
9number for a chance at a prize for the next day's daily drawing.

10* * *

11"Games of chance." Punchboards, coin auctions, vertical 
12wheel games, a night at the races, selective raffles, Texas 
13hold'em card tournaments, cash or merchandise bashes, daily 
14drawings, weekly drawings, monthly drawings, 50/50 drawings, 
15raffles and pull-tabs, as defined in this act, provided that, 
16except for vertical wheel games, no such game shall be played by 
17or with the assistance of any mechanical or electrical devices 
18or media other than a dispensing machine or passive selection 
19device and further provided that the particular chance taken by 
20any person in any such game shall not be made contingent upon 
21any other occurrence or the winning of any other contest, but 
22shall be determined solely at the discretion of the purchaser. 
23This definition shall not be construed to authorize any other 
24form of gambling currently prohibited under any provision of 
25Title 18 of the Pennsylvania Consolidated Statutes (relating to 
26crimes and offenses) or authorized under 4 Pa.C.S. (relating to 
27amusements). Nothing in this act shall be construed to authorize 
28games commonly known as "slot machines" or "video poker."

29"Law enforcement official." A municipal police officer, a
30member of the Pennsylvania State Police, excluding members of 

1the Bureau of Liquor Control Enforcement, the sheriff of a
2county or a deputy sheriff.

3* * *

4"Monthly drawing." A game of chance in which a bona fide
5member selects or is assigned a number for a chance at a prize
6with the winner determined by random drawing to take place
7during any operating month. Nothing in this act shall be
8construed to prohibit the carrying over of a prize where the
9winning number has not been entered in the game in a particular
10month. Monthly drawing winners may be determined with the aid of
11a passive selection device or reference to drawings conducted by
12the Department of Revenue under the act of August 26, 1971
13(P.L.351, No.91), known as the State Lottery Law. Monthly
14drawing chances may not be sold for an amount in excess of $5.
15After the monthly drawing is held, a bona fide member may select
16a number for a chance at a prize for the next month's drawing.

17* * *

18"Selective raffle." A game of chance in which a participant
19buys a ticket or tickets for a chance to win a donated prize.
20The participant places his or her ticket or tickets in a
21designated location for the prize which he or she would like to
22win. The winner for each prize is determined by a random drawing
23of tickets with a corresponding number for the prize.

24"Texas hold'em card tournament." A poker variant or
25community card game where each player may use any combination of
26five community cards and the player's own two hold cards to make
27a poker hand. In tournament format, a player may bet up to the
28amount of chips he possesses.

29"Vertical wheel game." A game in which a participant places 
30a coin or chip on a color, number or word or purchases a ticket 

1containing a color, number or word and watches a spinning 
2vertical wheel until the pointer of the wheel rests on a section 
3of the wheel designating a winner. For the purposes of this act, 
4the term is not a "table game" as defined in 4 Pa.C.S. § 1103 
5(relating to definitions).

6* * *

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

19Section 2. Sections 302 and 305(d) of the act, amended
20February 2, 2012 (P.L.7, No.2), are amended to read:

21Section 302. Prize limits.

22(a) Individual prize limit.--Except as provided under 
23subsections (d) [and], (d.1) and (m.1), the maximum prize which
24may be awarded for any single chance shall be $1,000.

25(b) Aggregate prize limit.--No more than $25,000 in prizes
26shall be awarded from games of chance by a licensed eligible
27organization in any seven-day period.

28(c) Raffle prize limit.--Up to $10,000 in prizes may be
29awarded in raffles in any calendar month.

30(c.1) Total limit.--[All] Except as provided for in 

1subsection (i), all prizes awarded under this section shall be
2subject to the aggregate prize limits under subsection (b).

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

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

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

14(3) Only one raffle may be conducted under each special
15permit issued under section 308.

16(4) Except as provided under subsection (d.1), the total
17of all prizes awarded under this subsection shall be no more
18than $100,000 per calendar year.

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

24(f) Daily drawing carryover.--The prize limitation contained
25in subsections (a) and (b) may be exceeded by a daily drawing
26under the following circumstances: a daily drawing may award a
27prize in excess of $1,000 if such prize is the result of a
28carryover of a drawing which resulted from the winning number in
29such drawing not being among the eligible entrants in such
30drawings. Nothing contained herein shall authorize the prize

1limitation as contained in subsections (a) and (b) to be
2exceeded as a result of a failure to conduct a drawing on an
3operating day during which chances were sold for a daily drawing
4or for a daily drawing for which chances were sold in excess of
5$1 or for which more than one chance was sold to an eligible
6participant.

7(g) Additional exception.--When a daily drawing [or], weekly
8drawing or monthly drawing is set up or conducted in such a
9manner as to pay out or award 100% of the gross revenues
10generated from such drawing, the limitation contained in
11subsection (b) shall not apply.

12(h) Weekly drawing carryover exception.--Weekly drawings
13shall be governed by the prize limitation contained in
14subsection (b). The prize limitation contained in subsection (b)
15may be exceeded by a weekly drawing under the following
16circumstances: a weekly drawing may award a prize where the cash
17value is in excess of $25,000 if such prize is the result of a
18carryover of a drawing or drawings which resulted from the
19winning number or numbers in such drawing or drawings not being
20among the eligible entrants in such drawings. Nothing contained
21in this chapter shall authorize the prize limitation under
22subsection (b) to be exceeded as a result of a failure to
23conduct a drawing for a week during which chances were sold for
24a weekly drawing or for a weekly drawing for which chances were
25sold in excess of $1.

26(i) Monthly drawing carryover exception.--Monthly drawings
27shall not exceed $25,000. The prize limitation may be exceeded
28by a monthly drawing under the following circumstances, a
29monthly drawing may award a prize where the cash value is in
30excess of $25,000 if such prize is the result of a carryover of

1a drawing or drawings which resulted from the winning number or
2numbers in such drawing or drawings not being among the eligible
3entrants in such drawings. Nothing contained in this chapter
4shall authorize the prize limitation of $25,000 to be exceeded
5as a result of a failure to conduct a drawing for a month during
6which chances were sold for a monthly drawing or for a monthly
7drawing for which chances were sold in excess of $5.

8(j) Concurrent operation.--Nothing in this act shall
9prohibit the concurrent operation of daily, weekly and monthly
10drawings.

11Section 305. Registration of manufacturers.

12* * *

13(d) Exception.--This section shall not apply to the
14manufacture or distribution of raffle tickets, 50/50 drawings,
15daily drawings [or], weekly drawings or monthly drawings.

16Section 3. Section 306 of the act, amended October 24, 2012
17(P.L.1462, No.184), is amended to read:

18Section 306. Regulations of department.

19(a) Authorization.--The department shall promulgate
20regulations to:

21(1) Impose minimum standards and restrictions applicable
22to games of chance manufactured for sale in this
23Commonwealth, which may include standards and restrictions
24which specify the maximum number of chances available to be
25sold for any single game of chance or prize and such other
26standards and restrictions as the department deems necessary
27for the purposes of this chapter. The department shall
28consider standards adopted by the National Association of
29Gambling Regulatory Agencies and other standards commonly
30accepted in the industry.

1(2) Establish procedures by which manufacturers may
2register and distributors of games of chance may apply for
3licensure on forms which the department shall provide.
4Procedures shall include a requirement that manufacturer and 
5distributor applicants provide criminal history record 
6information obtained from the Pennsylvania State Police under 
718 Pa.C.S. § 9121(b) (relating to general regulations) for 
8each officer and manager of the manufacturer's or 
9distributor's organization and for any other individual 
10specified by the department. As used in this paragraph, the 
11term "criminal history record information" has the meaning 
12given in 18 Pa.C.S. § 9102 (relating to definitions).

13(3) Provide for the suspension or revocation of
14distribution licenses or manufacturer certificates for
15violations of this act or regulations of the department.

16(4) Carry out other provisions of this act.

17(a.1) Prohibition.--Notwithstanding any other provision of
18law, the department may not adopt a regulation, rule, guideline,
19practice or procedure that prohibits an eligible organization
20from imposing a penalty of up to 50% of the amount of a prize
21for a daily drawing, weekly drawing or monthly drawing if the
22winner of the drawing is not present at the time of the drawing.

23(b) Limitation on recordkeeping requirements.--This section
24shall not be construed to authorize the department to promulgate
25regulations providing for recordkeeping requirements for
26licensed eligible organizations which require unreasonable or
27unnecessary information or a repetitious listing of information.
28The department shall strive to keep such recordkeeping
29requirements from being an undue hardship or burden on licensed
30eligible organizations. For individual prizes in excess of $600, 

1records shall include the name and address of the winner. An 
2eligible organization shall not obtain or retain receipts of 
3prizes that are donated. An eligible organization shall provide 
4each winner with a receipt of the value of the prize won, unless 
5the prize is cash. Except as provided under section 701(b), the
6department may not require the retention of records for a period
7in excess of two years.

8(c) Reporting requirements.--Each eligible organization
9which has proceeds in excess of [$2,500] $150,000 in a calendar
10year shall submit an annual report to the department including:

11(1) Prizes awarded as required under section 335 of the
12act of March 4, 1971 (P.L.6, No.2), known as the Tax Reform
13Code of 1971.

14(2) Amounts expended for public interest purposes.

15Section 4. Section 307 of the act, amended February 2, 2012
16(P.L.7, No.2) and October 24, 2012 (P.L.1462, No.184), is
17amended to read:

18Section 307. Licensing of eligible organizations to conduct
19games of chance.

20(a) License required.--No eligible organization shall
21conduct or operate any games of chance unless such eligible
22organization has obtained and maintains a valid license or
23limited occasion license issued pursuant to this section. An
24auxiliary group of a licensed eligible organization shall be
25eligible to conduct games of chance using the license issued to
26the eligible organization provided that the auxiliary group or
27groups are listed on the application and license of the eligible
28organization. An auxiliary group is not eligible to obtain a
29license or a limited occasion license. No additional licensing
30fee shall be charged for an auxiliary group's eligibility under

1this chapter. Auxiliary groups shall not include branches,
2lodges or chapters of a Statewide organization.

3(b) Issuance and fees.--The licensing authority shall
4license, upon application, within 30 days any eligible
5organization meeting the requirements for licensure contained in
6this chapter to conduct and operate games of chance at such
7locations within the county or in such manner as stated on the
8application as limited by subsection (b.1). The license fee to
9be charged to each eligible organization shall be $100, except
10for limited occasion licenses which shall be $10. Licenses shall
11be renewable annually upon the anniversary of the date of issue.
12The license fee shall be used by the licensing authority to
13administer this act.

14[(b.1) Location of games of chance.--

15(1) Except as otherwise provided in this section, a
16licensed eligible organization, except a limited occasion
17licensee, may conduct small games of chance at a licensed
18premises. The licensed premises shall be indicated on the
19eligible organization's license application. Only one license
20shall be issued per licensed premises. Except as provided
21under paragraph (4), a licensed eligible organization may not
22share a licensed premises with another licensed eligible
23organization; and no licensed eligible organization may
24permit its premises to be used for small games of chance by
25another licensed eligible organization.

26(2) Where there exists a location or premises which is
27the normal business or operating site of the eligible
28organization and the location or premises is owned or leased
29by that eligible organization to conduct its normal business,
30that site shall be the eligible organization's licensed

1premises. If that location consists of more than one
2building, the eligible organization shall identify the
3building that will be designated as the licensed premises.

4(3) When an eligible organization does not own or lease
5a specific location to conduct its normal business, the
6eligible organization may make arrangements that are
7consistent with this act to establish a licensed premises,
8including leasing a premise under a written agreement for a
9rental; however, the rental may not be determined by either
10the amount of receipts realized from the conduct of games of
11chance or the number of people attending. An eligible
12organization may lease a facility for a banquet in connection
13with the serving of a meal based on a per-head charge.

14(3.1) Notwithstanding paragraphs (1), (2) and (3), if an
15eligible organization is unable to conduct games of chance at
16the location listed on its application and license due to
17natural disaster, fire or other circumstance that renders the
18location unusable, the eligible organization may submit a
19written request to the district attorney to conduct games of
20chance in a different location, including the licensed
21premises of another eligible organization. The request must
22include the change in the location and the dates and times
23the games of chance will be operated at the alternative
24location. The district attorney shall establish a limit on
25the duration of the authorization to conduct games of chance
26at the alternative location. Following the expiration of the
27authorization period, the eligible organization must return
28to the location specified in its application and license or
29apply to the licensing authority for a new permanent location
30for the conduct of games of chance. The district attorney may

1approve or deny the request or stipulate additional
2requirements as a condition of approval. If an eligible
3organization permits another eligible organization to use its
4licensed premises to conduct games of chance under this
5paragraph, the eligible organization shall cease its
6operation of games of chance during the time the eligible
7organization utilizing its premises is conducting its games
8of chance.

9(3.2) Notwithstanding paragraphs (1), (2) and (3), the
10following eligible organizations established to raise funds
11shall not be required to conduct a 50/50 drawing or a raffle
12at a licensed premises or to own, lease or establish a
13licensed premises:

14(i) A nonprofit sports team.

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

17(4) An eligible organization that has obtained a limited
18occasion license under subsection (b.3) may use another
19eligible organization's licensed premises to conduct its
20games of chance. When a licensed eligible organization is
21permitting a limited occasion licensee to use its licensed
22premises for purposes of games of chance, it shall cease the
23operation of its own games of chance during the period that
24the limited occasion licensee is conducting its games on the
25premises.

26(5) For purposes of major league sports drawings, the
27facility at which a major league sports team conducts its
28games shall constitute a premises for purposes of this act.

29(b.2) Off-premises games of chance.--Notwithstanding any
30other provisions of this section, all of the following apply:

1(1) A licensed eligible organization may conduct games
2of chance at a location off its premises when the games of
3chance are part of an annual carnival, fair, picnic or
4banquet held or participated in by that licensed eligible
5organization on a historical basis. The licensed eligible
6organization must notify, in writing, the district attorney
7and licensing authority of the location, date and times of
8the event where it will be conducting games of chance.

9(2) Raffle tickets may be sold off the licensed premises
10in a municipality which has adopted the provisions of this
11act by an affirmative vote in a municipal referendum. A
12licensed eligible organization which plans to sell raffle
13tickets in a municipality located in a county other than the
14county in which the eligible organization is licensed shall
15notify that county's district attorney and licensing
16authority as to the location and the dates that the licensed
17eligible organization plans to sell raffle tickets.

18(b.3) Limited occasion licenses.--Eligible organizations
19which do not own their own premises or which do not lease a
20specific location to conduct their normal business may apply for
21a limited occasion license to conduct games of chance on not
22more than three occasions covering a total of seven days during
23a licensed year. A limited occasion license entitles an eligible
24organization to conduct no more than two raffles during a
25licensed year where prizes may not exceed the established limits
26for regular monthly raffles. Holders of a limited occasion
27license may not apply or be granted any other license or special
28permit under this act. No holder of a regular license or special
29permit under this act shall apply or be granted a limited
30occasion license.]

1(b.4) Gambling facility prohibited.--It shall be unlawful
2for a person, corporation, association, partnership or other
3business entity to offer for rent or offer for use a building or
4facility to be used exclusively for the conduct of games of
5chance. It shall also be unlawful for any eligible organization
6to lease under any terms a building or facility which is used
7exclusively for the conduct of games of chance.

8(c) Display.--Licenses issued pursuant to this section shall
9be publicly displayed at the site where games of chance are
10conducted.

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

13(1) Permitting any person under 18 years of age to
14operate or play games of chance.

15(2) Permitting any person who has been convicted of a
16felony in a Federal or State court within the past five years
17or has been convicted in a Federal or State court within the
18past ten years of a violation of the act of July 10, 1981
19(P.L.214, No.67), known as the Bingo Law, or of this act to
20manage, set up, supervise or participate in the operation of
21games of chance.

22(3) Paying any compensation to any person for conducting
23any games of chance. Games of chance may only be conducted by
24managers, officers, directors, bar personnel [and], bona fide
25members of the eligible organization and any other person who 
26is at least 18 years of age and authorized by the officers of 
27the eligible organization.

28[(4) Conducting games of chance on any premises other
29than on the licensed premises or as otherwise provided by
30this chapter.

1(5) Leasing the licensed premises under either an oral
2or a written agreement for a rental which is determined by
3either the amount of receipts realized from the playing of
4games of chance or the number of people attending, except
5that an eligible organization may lease a facility for a
6banquet where a per head charge is applied in connection with
7the serving of a meal. An eligible organization shall not
8lease such premises from any person who has been convicted of
9a violation of this act or the Bingo Law within the past ten
10years.]

11(6) Purchasing games of chance, other than raffles,
1250/50 drawings, daily drawings [and], weekly drawings and 
13monthly drawings, from any person other than a registered
14manufacturer or licensed distributor approved by the
15department.

16(d.1) Bank account and records.--The licensed eligible
17organization shall keep a bank account to hold the proceeds of
18games of chance, which shall be separate from all other funds
19belonging to the licensed eligible organization. Account records
20shall show all expenditures and income and shall be retained by
21the licensed eligible organization for at least two years.

22(e) Application for license.--Each eligible organization
23shall apply to the licensing authority for a license on a form
24to be prescribed by the Secretary of Revenue. For a club
25license, the application and each renewal application shall
26include the most recent annual report filed by the club licensee
27under Chapter 5. The form shall contain an affidavit to be
28affirmed by the executive officer or secretary of the eligible
29organization stating that:

30(1) No person under 18 years of age will be permitted by

1the eligible organization to operate or play games of chance.

2(2) The facility in which the games of chance are to be
3played has adequate means of ingress and egress and adequate
4sanitary facilities available in the area.

5(3) The eligible organization is not leasing such
6premises from the owner thereof under an oral agreement, nor
7is it leasing such premises from the owner thereof under a
8written agreement at a rental which is determined by the
9amount of receipts realized from the playing of games of
10chance or by the number of people attending, except that an
11eligible organization may lease a facility for a banquet
12where a per head charge is applied in connection with the
13serving of a meal.

14(e.1) Proceedings.--Proceedings before the licensing
15authority are subject to 2 Pa.C.S. Chs. 5 Subch. B (relating to
16practice and procedure of local agencies) and 7 Subch. B
17(relating to judicial review of local agency action).

18(f) List of licensees.--The licensing authority, on a
19semiannual basis, shall send a copy of all licensees to the
20department.

21(g) List of municipalities.--The licensing authority shall
22include with any license or renewal license issued to an
23eligible organization, an up-to-date listing of those
24municipalities within the licensing county which have approved
25the referendum question on small games of chance.

26(h) Background checks.--Each application for a license
27submitted by an eligible organization which has proceeds in
28excess of [$2,500] $150,000 in a year shall include the results
29of a criminal history record information check obtained from the
30Pennsylvania State Police, as defined in 18 Pa.C.S. § 9102

1(relating to definitions) and permitted by 18 Pa.C.S. § 9121(b)
2(relating to general regulations), for the executive officer and
3secretary of the eligible organization making the application
4for a license or any other person required by the department.
5Applications shall not require the results of a criminal history 
6record information check for an individual serving as an 
7executive officer or secretary who previously submitted such 
8information as an officer in that capacity with an application 
9under this section unless that person has been the subject of a 
10criminal history information since the first submission of 
11information for application under this section.

12Section 5. Sections 501(b), 502(a) and (a.1), 503 and 701 of
13the act, amended or added February 2, 2012 (P.L.7, No.2), are
14amended to read:

15Section 501. Club licensee.

16* * *

17[(b) Distribution.--The department shall provide a copy of
18the report to the Bureau of Liquor Control Enforcement.]

19* * *

20Section 502. Distribution of proceeds.

21(a) Distribution.--The proceeds from games of chance
22received by a club licensee shall be distributed as follows:

23(1) No less than [70%] 50% of the proceeds shall be paid
24to organizations for public interest purposes in the calendar
25year in which the proceeds were obtained. This paragraph 
26includes charity events, scholarship programs and other 
27philanthropic events held by the club and available to club 
28members, club member families and the general public.

29(2) No more than [30%] 50% of the proceeds obtained in a
30calendar year may be retained by a club licensee and used for

1the following operational expenses relating to the club
2licensee:

3(i) Real property taxes.

4(ii) Utility and fuel costs.

5(iii) Heating and air conditioning equipment or
6repair costs.

7(iv) Water and sewer costs.

8(v) Property or liability insurance costs.

9(vi) Mortgage payments.

10(vii) Interior and exterior repair costs, including
11repair to parking lots.

12(viii) New facility construction costs.

13(ix) Entertainment equipment, including television,
14video and electronic games.

15(x) Other expenses adopted in regulation by the
16department.

17(a.1) Amounts retained.--Amounts retained by a club licensee
18under subsection [(a)(2)] (a) shall be expended within the same
19calendar year unless the club licensee notifies the department
20that funds are being retained for a substantial purchase or
21project. [Notification shall include a description of the
22purchase or project, the cost and the anticipated date of the
23purchase or project.]

24* * *

25Section 503. Records.

26A club licensee shall maintain records as required by this
27act or by the department, including invoices for games of chance
28purchased. Records necessary to conduct an audit under section
29702(b) shall be made available to [the Bureau of Liquor Control
30Enforcement or other] any entity authorized to enforce this act.

1Section 701. Revocation of licenses.

2(a) Grounds.--The following shall be grounds for suspension, 
3revocation or nonrenewal of a license:

4(1) Any of the proceeds derived from the operation of
5games of chance by an eligible organization are used for any
6purpose other than for:

7(i) public interest purposes;

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

9(iii) a purpose permitted by Chapter 5.

10(1.1) Any of the funds derived from the operation of
11games of chance by a club licensee are used in a manner that
12does not comply with section 502.

13(2) Any person under 18 years of age is operating or
14playing games of chance.

15(3) The eligible organization has permitted any person 
16who has been convicted of a felony in a Federal or State 
17court within the past five years or has been convicted in a 
18Federal or State court within the past ten years of a 
19violation of the act of July 10, 1981 (P.L.214, No.67), known 
20as the Bingo Law, or of this act, to manage, set up, 
21supervise or participate in the operation of games of chance.

22(4) The facility in which the games of chance are played
23does not have adequate means of ingress and egress and does
24not have adequate sanitary facilities available in the area.

25(5) Any person or persons other than a manager, officer,
26director, bar personnel or a bona fide member of an eligible
27organization or other person who is at least 18 years of age 
28authorized by the officers of the eligible organization have
29been involved in managing, setting up, operating or running
30games of chance.

1(6) Any person has received compensation for conducting
2games of chance.

3(7) Any prize has been awarded in excess of the limits
4permitted under this act.

5(8) The eligible organization has violated any condition
6of a special permit issued pursuant to section 308.

7(9) The eligible organization conducts the games of
8chance under a lease which calls for:

9(i) leasing such premises from the owner thereof
10under an oral agreement; or

11(ii) leasing such premises from the owner thereof
12under a written agreement at a rental which is determined
13by the amount of receipts realized from the playing of
14games of chance.

15(10) False or erroneous information was provided in the
16original application or in any information provided to the 
17licensing authority or the department in any report.

18(11) An eligible organization has been convicted of a
19violation of this act as evidenced by a certified record of
20the conviction.

21[(12) The eligible organization has permitted another
22eligible organization to conduct games of chance on its
23licensed premises without suspending its own operation of
24games of chance during the period that the other licensed
25eligible organization is conducting its games on the
26premises.]

27(13) A club licensee has failed to file an accurate
28report under section 501(a).

29(14) A club licensee has failed to comply with section
30502.

1(15) Failure to file reports under section 501.

2(b) Production of records.--The district attorney may
3require licensees to produce their books, accounts and records
4relating to the conduct of games of chance in order to determine
5if a violation of this act has occurred. Licensees shall also be
6required, upon request, to provide their license, books,
7accounts and records relating to the conduct of games of chance
8to the licensing authority[, the Bureau of Liquor Control
9Enforcement] or to a law enforcement agency or official. A club
10licensee shall retain records for a period of five years.

11Section 6. Section 702(b), (c) and (d) of the act, amended
12February 2, 2012 (P.L.7, No.2) and October 24, 2012 (P.L.1462,
13No.184), is amended to read:

14Section 702. Enforcement.

15* * *

16[(b) Bureau of Liquor Control Enforcement.--If the licensee
17is a club licensee, the Bureau of Liquor Control Enforcement may
18enforce the provisions of this act in accordance with subsection
19(g). An administrative law judge under section 212 of the act of
20April 12, 1951 (P.L.90, No.21), known as the Liquor Code, may
21impose the penalties under subsection (d) following the issuance
22of a citation by the bureau.

23(c) Random audits.--The Bureau of Liquor Control Enforcement
24shall conduct annual random audits of 5% of all club licensees.]

25(d) Powers and duties.--The licensing authority[, or, in the
26case of a club licensee, the Bureau of Liquor Control
27Enforcement,] may impose the following penalties:

28(1) A civil penalty.

29(2) Suspension or revocation of the license.

30* * *

1Section 7. The provisions of 61 Pa. Code §§ 901.463(4)
2(relating to raffle records), 901.464(9) (relating to punchboard
3and pull-tab records), 901.464a(9) (relating to daily and weekly
4drawing records), 901.466(1) (relating to prize records) and
5901.733(f) (relating to control of prizes) are abrogated.

6Section 8. This act shall take effect immediately.