PRINTER'S NO. 927
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No.
826
Session of
2019
INTRODUCED BY MARSHALL, DUNBAR, KAIL, PYLE, DeLUCA, BERNSTINE,
BURGOS, TOOHIL AND MASSER, MARCH 14, 2019
REFERRED TO COMMITTEE ON GAMING OVERSIGHT, MARCH 14, 2019
AN ACT
Providing for sports raffles for charity; and making related
repeals.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Short title.
This act shall be known and may be cited as the Sports Raffle
Charities Act.
Section 2. Legislative intent.
The General Assembly declares that the playing of games of
chance for the purpose of raising funds, by certain nonprofit
associations, for the promotion of charitable or civic purposes,
is in the public interest. In some cases, the proceeds from
games of chance may be utilized to support certain operating
expenses of certain charitable organizations.
Section 3. Definitions.
The following words and phrases when used in this act shall
have the meanings given to them in this section unless the
context clearly indicates otherwise:
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"Affiliated nonprofit organization." An organization
established by or affiliated with an athletic team for the
purpose of raising funds for charity, which is qualified for an
exemption under section 501(c)(3) of the Internal Revenue Code
of 1986 (Public Law 99-514, 26 U.S.C. § 501(c)(3)).
"Athletic event drawing." A 50/50 drawing that is conducted
by an affiliated nonprofit organization in accordance with this
act.
"Athletic team." A sports team or racing facility that is
any of the following:
(1) A member of Major League Baseball, the National
Hockey League, the National Basketball Association, the
National Football League or Major League Soccer.
(2) A professional sports team affiliated with a team
under paragraph (1).
(3) Any other professional sports team that has a sports
facility or an agreement with a sports facility to conduct
home games at the facility.
(4) A stadium, grandstand, bleacher or contiguous
parking lot at a closed-course motor facility where
spectators directly observe motor races with NASCAR, Indy,
stock or drag racing cars.
(5) A collegiate team that competes on behalf of an
institution of higher education.
"Department." The Department of Revenue of the Commonwealth.
"Institution of higher education." Any of the following:
(1) A community college operating under Article XIX-A of
the act of March 10, 1949 (P.L.30, No.14), known as the
Public School Code of 1949.
(2) A university within the State System of Higher
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Education.
(3) The Pennsylvania State University.
(4) The University of Pittsburgh.
(5) Temple University.
(6) Lincoln University.
(7) Any other institution that is designated as "State-
related" by the Commonwealth.
(8) An accredited private or independent college or
university.
Section 4. Athletic event drawing.
(a) General rule.--A person may purchase one or more
athletic event drawing tickets at a home game, and each ticket
purchased shall represent one entry in the drawing for a winner.
A single ticket shall be randomly chosen as the winner after a
certain number of tickets are sold or a specified time period
expires as designated by the affiliated nonprofit organization.
Purchase of athletic event drawing tickets may be made by cash,
credit card or debit card.
(b) Frequency.--An affiliated nonprofit organization may
conduct no more than one athletic event drawing per home game.
(c) Sales restricted.--Tickets for an athletic event drawing
may not be sold in any seating area designated as a family
section.
(d) Charitable event.--An athletic event drawing may be
conducted by the affiliated nonprofit organization during a
charitable event held within the same arena, stadium,
grandstand, bleachers or other facility during a home game, team
event or car race of the athletic team. Drawings may only be
held within spectator areas within the arena, stadium,
grandstand or bleachers where the home game or car race is being
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conducted and not at ancillary areas or facilities, including
parking areas, restaurants and bars or areas outside the arena,
stadium, grandstand or bleachers or areas where the sport is
shown on remote electronic equipment.
(e) Distribution.--The prize amount of an athletic event
drawing shall be 50% of the total amount collected from the sale
of athletic event drawing tickets. Except as provided under
subsection (f), the other 50% of the total amount collected from
the sale of athletic event drawing tickets shall be donated
within seven days from the date of the drawing by the affiliated
nonprofit organization conducting the athletic event drawing to
one or more designated charitable organizations for which the
drawing was conducted.
(f) Use of funds.--
(1) The affiliated nonprofit organization may utilize
nonprize money collected for the following:
(i) To employ or provide payment to individuals 18
years of age or older to sell athletic event drawing
tickets.
(ii) For administrative expenses directly related to
the conduct of the athletic event drawing under this
section.
(2) Authorized expenses under paragraph (1)(ii) may not
exceed 2% of the total amount collected from the sale of
athletic event drawing tickets.
(g) Designated charitable organization.--The affiliated
nonprofit organization conducting the athletic event drawing
shall disclose to each ticket purchaser the designated
charitable organization for which the athletic event drawing is
being conducted.
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(h) Eligibility.--In order to receive proceeds from an
athletic event drawing, a charitable organization must be in
existence and fulfilling its purposes for at least two years
prior to the drawing and shall be eligible for exemption under
section 501(c)(3) of the Internal Revenue Code of 1986 (Public
Law 99-514, 26 U.S.C. § 501(c)(3)). A political subdivision
shall not qualify as a charitable organization under this
section.
(i) Unclaimed prizes.--An athletic event drawing prize
remaining unclaimed by a winner at the end of the athletic
team's season shall be donated within 30 days from the end of
the season by the affiliated nonprofit organization to the
designated charitable organization for which the athletic event
drawing was conducted.
(j) Additional recordkeeping.--The department may require
additional recordkeeping or accountability measures for athletic
event drawings.
(k) Mechanical or electrical devices.--An athletic event
drawing may be played with the assistance of a mechanical or
electrical device. Nothing under this subsection shall be
construed to authorize any other form of gambling authorized
under 4 Pa.C.S. (relating to amusements).
Section 5. Repeals.
(a) Declaration.--The General Assembly declares that the
repeal under subsection (b) is necessary to effectuate this act.
(b) Repeal.--The following provisions of the act of December
19, 1988 (P.L.1262, No.156), known as the Local Option Small
Games of Chance Act, are repealed:
(1) The definitions of "major league sports drawing" and
"major league sports team" in section 103.
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(2) Section 304.1.
Section 6. Effective date.
This act shall take effect immediately.
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