Regular Session 2015-2016 House Bill 1356 P.N. 1903

PRINTER'S NO. 1903

THE GENERAL ASSEMBLY OF PENNSYLVANIA

HOUSE BILL

No.

1356

Session of

2015

INTRODUCED BY MOUL, KOTIK, PICKETT, KLUNK, MILLARD, GROVE AND

COHEN, JUNE 24, 2015

REFERRED TO COMMITTEE ON GAMING OVERSIGHT, JUNE 24, 2015

AN ACT

Amending the act of December 19, 1988 (P.L.1262, No.156),

entitled, as amended, "An act providing for the licensing of

eligible organizations to conduct games of chance, for the

licensing of persons to distribute games of chance, for the

registration of manufacturers of games of chance, and for

suspensions and revocations of licenses and permits;

requiring records; providing for local referendum by

electorate; and prescribing penalties," further providing for

definitions, for games of chance permitted, for prize limits,

for distributor licenses, for registration of manufacturers

and for licensing of eligible organizations; and imposing a

club licensee tax.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

Section 1. The definition of "games of chance" in section

103 of the act of December 19, 1988 (P.L.1262, No.156), known as

the Local Option Small Games of Chance Act, amended November 27,

2013 (P.L.1045, No.90) and November 27, 2013 (P.L.1062, No.92),

is amended and the section is amended by adding definitions to

read:

Section 103. Definitions.

The following words and phrases when used in this act shall,

except as provided under section 902, have the meanings given to

them in this section unless the context clearly indicates

otherwise:

* * *

"Coin auction." A game in which a participant buys a

numbered paddle for a chance to bid on a donated prize with the

winner determined by a random drawing of corresponding numbers.

* * *

"Games of chance." Punchboards, daily drawings, weekly

drawings, 50/50 drawings, raffles, tavern games, pools, race

night games, coin auctions, vertical wheel games and pull-tabs,

as defined in this act, provided that no such game, except

vertical wheel games, shall be played by or with the assistance

of any mechanical or electrical devices or media other than a

dispensing machine or passive selection device and further

provided that the particular chance taken by any person in any

such game shall not be made contingent upon any other occurrence

or the winning of any other contest, but shall be determined

solely at the discretion of the purchaser. This definition shall

not be construed to authorize any other form of gambling

currently prohibited under any provision of 18 Pa.C.S. (relating

to crimes and offenses) or authorized under 4 Pa.C.S. (relating

to amusements). Nothing in this act shall be construed to

authorize games commonly known as "slot machines" or "video

poker" or other games regulated by the Pennsylvania Gaming

Control Board.

* * *

"Vertical wheel game." A game in which a participant places

a coin or token on a color, number or word or purchases a ticket

containing a color, number or word and watches a spinning

vertical wheel until the pointer of the wheel rests on a section

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of the wheel designating a winner.

* * *

Section 2. Section 301 of the act, amended November 27, 2013

(P.L.1045, No.90) and November 27, 2013 (P.L.1062, No.92), is

amended to read:

Section 301. Games of chance permitted.

[Every] (a) General rule.--Except as otherwise provided in

subsection (b), every eligible organization to which a license

has been issued under the provisions of this chapter may conduct

games of chance for the purpose of raising funds for public

interest purposes. Except as provided in Chapter 5, all proceeds

of a licensed eligible organization shall be used exclusively

for public interest purposes, for the purchase of games of

chance or for the payment of the license fee, as required by

this act. An eligible organization whose primary purpose is the

promotion of a public interest may utilize the proceeds from

small games of chance to fulfill that purpose.

(b) Exception.--A club licensee may not operate a vertical

wheel game or coin action.

Section 3. Sections 302, 304(i) and 305(d) of the act,

amended or added November 27, 2013 (P.L.1062, No.92), are

amended to read:

Section 302. Prize limits.

(a) Individual prize limit.--Except as provided under

subsections (d) and (d.1), the maximum prize which may be

awarded for any single chance shall be $2,000.

[(b) Aggregate prize limit.--No more than $35,000 in prizes

shall be awarded from games of chance by a licensed eligible

organization in any seven-day period.]

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awarded in raffles in any calendar month.

[(c.1) Total limit.--All prizes awarded under this section

shall be subject to the aggregate prize limits under subsection

(b).]

(d) Exception for raffles.--Notwithstanding subsection [(b)

or] (c), a licensed eligible organization may conduct a raffle

under section 308 and award a prize or prizes valued in excess

of $3,000 each only under the following conditions:

(1) The licensing authority has issued a special permit

for the raffle under section 308.

(2) A licensed eligible organization shall be eligible

to receive no more than ten special permits in any licensed

term except that a volunteer fire, ambulance, rescue or

conservation organization that is not a club licensee shall

be eligible to receive 12 special permits in any licensed

term.

(3) Only one raffle may be conducted under each special

permit issued under section 308.

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

of all prizes awarded under this subsection shall be no more

than $150,000 per calendar year, which shall not be subject

to the aggregate limit under subsection [(b) or] (c).

(d.1) Additional award.--A volunteer fire, ambulance, rescue

or conservation organization may, in addition to the total under

subsection (d)(4), award up to $100,000 from raffles which shall

not be subject to the aggregate limit under subsection [(b),]

(f) Daily drawing carryover.--The prize limitation contained

in [subsections] subsection (a) [and (b)] may be exceeded by a

daily drawing under the following circumstances: a daily drawing

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may award a prize in excess of $2,000 if such prize is the

result of a carryover of a drawing which resulted from the

winning number in such drawing not being among the eligible

entrants in such drawings. Nothing contained herein shall

authorize the prize limitation as contained in [subsections]

subsection (a) [and (b)] to be exceeded as a result of a failure

to conduct a drawing on an operating day during which chances

were sold for a daily drawing or for a daily drawing for which

chances were sold in excess of $1 or for which more than one

chance was sold to an eligible participant.

[(g) Additional exception.--When a daily drawing or weekly

drawing is set up or conducted in such a manner as to pay out or

award 100% of the gross revenues generated from such drawing,

the limitation contained in subsection (b) shall not apply.

(h) Weekly drawing carryover exception.--Weekly drawings

shall be governed by the prize limitation contained in

subsection (b). The prize limitation contained in subsection (b)

may be exceeded by a weekly drawing under the following

circumstances: a weekly drawing may award a prize where the cash

value is in excess of $35,000 if such prize is the result of a

carryover of a drawing or drawings which resulted from the

winning number or numbers in such drawing or drawings not being

among the eligible entrants in such drawings. Nothing contained

in this chapter shall authorize the prize limitation under

subsection (b) to be exceeded as a result of a failure to

conduct a drawing for a week during which chances were sold for

a weekly drawing or for a weekly drawing for which chances were

sold in excess of $1.]

(i) Concurrent operation.--Nothing under this act shall

prohibit the concurrent operation of daily or weekly drawings.

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Section 304. Distributor licenses.

* * *

(i) Exception.--This section shall not apply to the

manufacture or distribution of raffle tickets, 50/50 drawings,

daily drawings, weekly drawings, coin auctions, vertical wheel

games or pools.

Section 305. Registration of manufacturers.

* * *

(d) Exception.--This section shall not apply to the

manufacture or distribution of raffle tickets, 50/50 drawings,

daily drawings, weekly drawings, coin auctions, vertical wheel

games or pools.

Section 4. Section 307(a)(1), (b) and (b.1) of the act,

amended November 27, 2013 (P.L.1062, No.92), are amended and the

section is amended by adding a subsection to read:

Section 307. Licensing of eligible organizations.

(a) License required.--The following shall apply:

(1) An eligible organization shall not conduct or

operate games of chance unless the eligible organization has

obtained a valid license as follows:

(i) A regular license which must be renewed

annually.

(ii) A triennial license which must be renewed every

three years.

[(ii)] (iii) A monthly license which permits the

eligible organization to conduct games of chance for a

30-consecutive-day period.

* * *

(b) Issuance.--The licensing authority shall issue a license

within 30 days of the submission of an application by an

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eligible organization that meets the requirements under this

chapter. Upon issuance, the licensing authority shall provide

the eligible organization with a unique license number.

(b.1) Fee.--The [license fee to be charged to each eligible

organization for a regular license shall be $125. The license

fee to be charged for a monthly license shall be $25. A regular

license must be renewed annually. The fee shall be used by the

licensing authority to administer this act.] licensing authority

shall charge a license fee to each eligible organization to be

used by the licensing authority to administer this act. The fees

shall be as follows:

(1) A regular license fee shall be $125.

(2) A triennial license fee shall be $375.

(3) A monthly license fee shall be $25.

* * *

(b.5) License renewal.--A regular license or triennial

license may be renewed by the eligible organization up to 90

days prior to the expiration of the license. A renewed regular

or triennial license shall contain the same unique license

number provided to the eligible organization under subsection

(b).

* * *

Section 5. The act is amended by adding a section to read:

Section 501.1. Club licensee tax.

(a) Imposition.--A $5 tax is imposed on each set bearing a

common serial number of a game of chance sold by a licensed

distributor to a club licensee within this Commonwealth.

(b) Collection.--The tax imposed under subsection (a) shall

be collected by the licensed distributor from the club licensee

in an instance where the game of chance is required to be

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purchased from a licensed distributor under this act and must be

paid to the Commonwealth.

(1) A licensed distributor subject to this section shall

file with the department, upon a form prescribed by the

department, a club licensee tax return. The return must be

filed under oath or affirmation of an authorized officer of

the licensed distributor reporting the total number of games

of chance sold to club licensees and the tax due under this

section in the prior calendar month. A return is due by the

20th day following the end of the reporting period.

(2) The return must include the following:

(i) The total number of games of chance sold to club

licensees in the prior calendar month, which must be

calculated by indicating the number of each type of game

of chance sold.

(ii) Calculation of the tax due under this section.

(iii) Other information required by the department.

(d) Payment.--A licensed distributor required to collect the

tax under this section shall remit the tax to the department

when the return in subsection (c) is made.

(e) Penalties and interest.--If the licensed distributor

fails to file the return required under subsection (c) or fails

to pay the tax imposed under subsection (a), the department may

do the following:

(1) assess the amount of tax due;

(2) impose and assess an administrative penalty equal to

10% of the tax due but unpaid for each quarter or fraction

thereof that the tax remains unpaid together with interest at

the rate established under section 806 of the act of April 9,

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1929 (P.L.343, No.176), known as The Fiscal Code, on the tax

from the time the tax became due. The penalty provided in

this paragraph must be added to the tax and assessed and

collected at the same time and in the same manner as a part

of the tax. Unless otherwise specified, the tax shall be

assessed, collected and enforced by the department under the

provisions of Article II of the act of March 4, 1971 (P.L.6,

No.2), known as the Tax Reform Code of 1971; or

(3) revoke a licensed distributor's license.

(f) Funds held in trust.--The funds owed to the Commonwealth

under this section shall be held in trust by a licensed

distributor.

(g) Deposit.--Beginning in fiscal year 2015-2016, the taxes

imposed by this section shall be deposited as follows:

(1) Ninety percent shall be deposited into the General

Fund.

(2) Ten percent shall be deposited into the State Stores

Fund and allocated to the Pennsylvania State Police for

liquor control enforcement expenses.

Section 6. This act shall take effect in 60 days.

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