S0444B1856A11705     VDL:CDM  06/12/12     #90        A11705

AMENDMENTS TO SENATE BILL NO. 444

Sponsor: REPRESENTATIVE REESE

Printer's No. 1856

Amend Bill, page 1, lines 25 through 29; page 2, lines 1 and

2, by striking out all of lines 25 through 29 on page 1, all of

line 1 and "advertising and for penalties; and making editorial

changes" in line 2 on page 2 and inserting

 distribution of proceeds

Amend Bill, page 36, lines 29 and 30; pages 37 through 73,

lines 1 through 30; page 74, lines 1 through 7, by striking out

all of said lines on said pages and inserting

Section 1.  Section 502 of the act of December 19, 1988

(P.L.1262, No.156), known as the Local Option Small Games of

Chance Act, added February 2, 2012 (P.L.7, No.2), is amended to

read:

Section 502.  Distribution of proceeds.

(a)  Distribution.--The proceeds from games of chance

received by a club licensee shall be distributed as follows:

(1)  No less than 70% of the proceeds shall be paid to

organizations for public interest purposes in the calendar

year in which the proceeds were obtained. This paragraph

includes charity events, scholarship programs and other

philanthropic events:

(i)  held by the club on its licensed premises; and

(ii)  available to club members, club member families

or the general public.

(2)  No more than 30% of the proceeds obtained in a

calendar year may be retained by a club licensee and used for

the following operational expenses relating to the club

licensee:

(i)  Real property taxes.

(ii)  Utility and fuel costs.

(iii)  Heating and air conditioning equipment or

repair costs.

(iv)  Water and sewer costs.

(v)  Property or liability insurance costs.

(vi)  Mortgage payments.

(vii)  Interior and exterior repair costs, including

repair to parking lots.

(viii)  New facility construction costs.

(ix)  Entertainment equipment, including television,

video and electronic games.

(x)  Other expenses adopted in regulation by the

department.

(a.1)  Amounts retained.--Amounts retained by a club licensee

under subsection (a)(2) shall be expended within the same

calendar year unless the club licensee notifies the department

that funds are being retained for a substantial purchase or

project. Notification shall include a description of the

purchase or project, the cost and the anticipated date of the

purchase or project.

(b)  Prohibition.--

(1)  Proceeds shall not be used for wages, alcohol or

food purchases or for the payment of any fine levied against

the club licensee.

(2)  An officer or employee of a club licensee who

operates the game of chance shall not participate in the

game. This paragraph shall not apply to a raffle.

Section 2.  This act shall take effect in 60 days.