HOUSE AMENDED PRIOR PRINTER'S NO. 80 PRINTER'S NO. 2496
No. 75 Session of 1987
INTRODUCED BY HOLL, JANUARY 15, 1987
AS REPORTED FROM COMMITTEE ON FINANCE, HOUSE OF REPRESENTATIVES, AS AMENDED, NOVEMBER 15, 1988
AN ACT 1 Amending the act of March 4, 1971 (P.L.6, No.2), entitled "An <-- 2 act relating to tax reform and State taxation by codifying 3 and enumerating certain subjects of taxation and imposing 4 taxes thereon; providing procedures for the payment, 5 collection, administration and enforcement thereof; providing 6 for tax credits in certain cases; conferring powers and 7 imposing duties upon the Department of Revenue, certain 8 employers, fiduciaries, individuals, persons, corporations 9 and other entities; prescribing crimes, offenses and 10 penalties," providing that no tax shall be imposed on sales 11 by volunteer firemen's, ambulance or rescue organizations. 12 PROVIDING FOR THE LICENSING OF CLUBS TO CONDUCT GAMES OF CHANCE; <-- 13 FOR THE LICENSING OF PERSONS TO DISTRIBUTE GAMES OF CHANCE; 14 FOR THE REGISTRATION OF MANUFACTURERS OF GAMES OF CHANCE; FOR 15 SUSPENSIONS AND REVOCATIONS OF LICENSES AND PERMITS; 16 REQUIRING RECORDS; PROVIDING FOR LOCAL REFERENDUM BY 17 ELECTORATE; AND PRESCRIBING PENALTIES. 18 TABLE OF CONTENTS 19 SECTION 1. SHORT TITLE. 20 SECTION 2. DEFINITIONS. 21 SECTION 3. GAMES OF CHANCE PERMITTED. 22 SECTION 4. PRIZE LIMITS. 23 SECTION 5. SALES LIMITED. 24 SECTION 6. DISTRIBUTOR LICENSES.
1 SECTION 7. REGISTRATION OF MANUFACTURERS. 2 SECTION 8. REGULATIONS OF DEPARTMENT. 3 SECTION 9. LICENSING OF CLUBS TO CONDUCT GAMES OF CHANCE. 4 SECTION 10. SPECIAL PERMITS. 5 SECTION 11. REVOCATION OF LICENSES. 6 SECTION 12. ENFORCEMENT. 7 SECTION 13. LOCAL OPTION. 8 SECTION 14. ADVERTISING. 9 SECTION 15. CERTAIN PERSONS PROHIBITED. 10 SECTION 16. PENALTIES. 11 SECTION 17. EFFECTIVE DATE. 12 The General Assembly of the Commonwealth of Pennsylvania 13 hereby enacts as follows: 14 Section 1. Section 204(1) of the act of March 4, 1971 <-- 15 (P.L.6, No.2), known as the Tax Reform Code of 1971, is amended 16 to read: 17 Section 204. Exclusions from Tax.--The tax imposed by 18 section 202 shall not be imposed upon 19 (1) The sale at retail or use of tangible personal property 20 (other than motor vehicles, trailers, semi-trailers, motor 21 boats, aircraft or other similar tangible personal property 22 required under either Federal law or laws of this Commonwealth 23 to be registered or licensed) or services sold by or purchased 24 from a person not a vendor in an isolated transaction or sold by 25 or purchased from a person who is a vendor but is not a vendor 26 with respect to the tangible personal property or services sold 27 or purchased in such transaction: Provided, That inventory and 28 stock in trade so sold or purchased, shall not be excluded from 29 the tax by the provisions of this subsection. Isolated 30 transactions include sales of tangible personal property or 19870S0075B2496 - 2 -
1 services by volunteer firemen's, ambulance or rescue 2 organizations without limitation as to the number of times or 3 number of days the sales or series of sales are conducted. 4 * * * 5 Section 2. This act shall take effect immediately. 6 SECTION 1. SHORT TITLE. <-- 7 THIS ACT SHALL BE KNOWN AND MAY BE CITED AS THE LOCAL OPTION 8 SMALL GAMES OF CHANCE ACT. 9 SECTION 2. DEFINITIONS. 10 THE FOLLOWING WORDS AND PHRASES WHEN USED IN THIS ACT SHALL 11 HAVE THE MEANINGS GIVEN TO THEM IN THIS SECTION UNLESS THE 12 CONTEXT CLEARLY INDICATES OTHERWISE: 13 "BONA FIDE CLUB MEMBER." ANY INDIVIDUAL WHO HOLDS A FULL 14 MEMBERSHIP IN THE CLUB AS DEFINED BY THE CLUB'S CONSTITUTION, 15 CHARTER, ARTICLES OF INCORPORATION OR BYLAWS. 16 "CHARITABLE ORGANIZATION." A NOT-FOR-PROFIT GROUP OR BODY OF 17 PERSONS WHICH IS CREATED AND EXISTS FOR THE PURPOSE OF 18 PERFORMING A HUMANE SERVICE; PROMOTING THE GOOD AND WELFARE OF 19 THE AGED, POOR, INFIRM OR DISTRESSED; COMBATING JUVENILE 20 DELINQUENCY; OR ADVANCING THE SPIRITUAL, MENTAL SOCIAL AND 21 PHYSICAL IMPROVEMENT OF YOUNG MEN AND WOMEN. 22 "CLUB." AN INCORPORATED UNIT OF A NATIONAL VETERANS' 23 ORGANIZATION, AS DEFINED IN SECTION 461.1 OF THE ACT OF APRIL 24 12, 1951 (P.L.90, NO.21), KNOWN AS THE LIQUOR CODE, AND LICENSED 25 TO SELL LIQUOR AT RETAIL UNDER THE ACT; OR A CLUB, AS DEFINED IN 26 SECTION 102 OF THE LIQUOR CODE, THAT QUALIFIES AS AN EXEMPT 27 ORGANIZATION UNDER SECTION 501(C) OR 527 OF THE INTERNAL REVENUE 28 CODE OF 1954 (68A STAT. 3, 26 U.S.C. § 501(C) OR 527) AND IS 29 LICENSED TO SELL LIQUOR AT RETAIL; OR AN ORGANIZED FRATERNAL 30 SOCIETY CREATED AND CARRIED ON FOR THE MUTUAL BENEFIT OF ITS 19870S0075B2496 - 3 -
1 MEMBERS, NOT-FOR-PROFIT AND NOT ISSUING CAPITAL STOCK, HAVING A 2 LIMITED MEMBERSHIP AND A REPRESENTATIVE FORM OF GOVERNMENT AND 3 LICENSED TO SELL LIQUOR AT RETAIL UNDER THE LIQUOR CODE; OR A 4 NOT-FOR-PROFIT RELIGIOUS OR CHARITABLE ORGANIZATION CONDUCTING 5 BUSINESS IN ACCORDANCE WITH THE EXPRESS PURPOSE OF A WRITTEN 6 CONSTITUTION, CHARTER, ARTICLES OF INCORPORATION OR BYLAWS. THE 7 TERM "CLUB" SHALL ALSO INCLUDE ANY VOLUNTEER FIRE COMPANY, 8 VOLUNTEER RESCUE SQUAD OR VOLUNTEER AMBULANCE ASSOCIATION. EACH 9 CLUB SHALL HAVE BEEN IN EXISTENCE AND FULFILLING ITS PURPOSES 10 FOR TWO YEARS PRIOR TO THE DATE OF APPLICATION FOR A LICENSE. 11 "DEPARTMENT." THE DEPARTMENT OF REVENUE OF THE COMMONWEALTH. 12 "GAMES OF CHANCE." PUNCHBOARDS, LOTTERIES, RAFFLES AND PULL- 13 TABS, AS DEFINED IN THIS ACT, PROVIDED THAT NO SUCH GAME SHALL 14 BE PLAYED BY OR WITH THE ASSISTANCE OF ANY MECHANICAL OR 15 ELECTRICAL DEVICES OR MEDIA AND FURTHER PROVIDED THAT THE 16 PARTICULAR CHANCE TAKEN BY ANY PERSON IN ANY SUCH GAME SHALL NOT 17 BE MADE CONTINGENT UPON ANY OTHER OCCURRENCE OR THE WINNING OF 18 ANY OTHER CONTEST, BUT SHALL BE DETERMINED SOLELY AT THE 19 DISCRETION OF THE PURCHASER. THIS DEFINITION SHALL NOT BE 20 CONSTRUED TO AUTHORIZE ANY OTHER FORM OF GAMBLING CURRENTLY 21 PROHIBITED UNDER ANY PROVISION OF TITLE 18 OF THE PENNSYLVANIA 22 CONSOLIDATED STATES (RELATING TO CRIMES AND OFFENSES). NOTHING 23 IN THIS ACT SHALL BE CONSTRUED TO AUTHORIZE GAMES COMMONLY KNOWN 24 AS "SLOT MACHINES" OR "VIDEO POKER." 25 "LAW ENFORCEMENT OFFICIAL." A MUNICIPAL POLICE OFFICER, A 26 MEMBER OF THE PENNSYLVANIA STATE POLICE, THE SHERIFF OF A COUNTY 27 OR A DEPUTY SHERIFF. 28 "LEGITIMATE CLUB PURPOSES." ONE OR MORE OF THE FOLLOWING: 29 (1) BENEFITING PERSONS BY ENHANCING THEIR OPPORTUNITY 30 FOR RELIGIOUS OR EDUCATION ADVANCEMENT, BY RELIEVING OR 19870S0075B2496 - 4 -
1 PROTECTING THEM FROM DISEASE, SUFFERING OR DISTRESS, BY 2 CONTRIBUTING TO THEIR PHYSICAL, EMOTIONAL OR SOCIAL WELL- 3 BEING, BY ASSISTING THEM IN ESTABLISHING THEMSELVES IN LIFE 4 AS WORTHY AND USEFUL CITIZENS, OR BY INCREASING THEIR 5 COMPREHENSION OF AND DEVOTION TO THE PRINCIPLES UPON WHICH 6 THIS NATION WAS FOUNDED; 7 (2) INITIATING, PERFORMING, OR FOSTERING WORTHY PUBLIC 8 WORKS OR ENABLING OR FURTHERING THE ERECTION OR MAINTENANCE 9 OF PUBLIC STRUCTURES; 10 (3) LESSENING THE BURDENS BORNE BY GOVERNMENT OR 11 VOLUNTARILY SUPPORTING, AUGMENTING OR SUPPLEMENTING SERVICES 12 WHICH GOVERNMENT WOULD NORMALLY RENDER TO THE PEOPLE; OR 13 (4) THE IMPROVING, EXPANDING, MAINTAINING OR REPAIRING 14 REAL PROPERTY OWNED OR LEASED BY A CLUB. 15 "LEGITIMATE CLUB PURPOSE." THE TERM DOES NOT INCLUDE THE 16 ERECTION OR ACQUISITION OF ANY REAL PROPERTY, UNLESS THE 17 PROPERTY WILL BE USED EXCLUSIVELY FOR ONE OR MORE OF THE 18 PURPOSES SPECIFIED IN THIS DEFINITION. 19 "LICENSING AUTHORITY." THE COUNTY TREASURER, OR IN ANY HOME 20 RULE COUNTY OR CITY OF THE FIRST CLASS, WHERE THERE IS NO 21 ELECTED TREASURER, THE DESIGNEE OF THE GOVERNING AUTHORITY. 22 "LOTTERY." A GAME IN WHICH A BONA FIDE CLUB MEMBER OR GUEST 23 SELECTS A NUMBER FOR A CHANCE AT A PRIZE WITH THE WINNER 24 DETERMINED BY A RANDOM DRAWING TO TAKE PLACE ON THE LICENSED 25 PREMISES. THE TERM INCLUDES GAMES COMMONLY KNOWN AS "MEMBER 26 SIGN-IN LOTTERIES" AND "HALF-AND-HALF LOTTERIES." NOTHING IN 27 THIS ACT SHALL BE CONSTRUED TO PERMIT LOTTERIES ANY PART OF 28 WHICH ARE CONDUCTED AT LOCATIONS OTHER THAN THE LICENSED 29 PREMISES, NOR SHALL THE TERM "LOTTERY" INCLUDE ANY GAME OR 30 CONTEST IN WHICH THE WINNING NUMBER IS DETERMINED BY ANY OTHER 19870S0075B2496 - 5 -
1 DRAWING OR EVENT, EXCEPT THAT WINNING NUMBERS MAY BE DETERMINED 2 BY REFERENCE TO DRAWINGS CONDUCTED BY THE DEPARTMENT PURSUANT TO 3 THE ACT OF AUGUST 26, 1971 (P.L.351, NO.91), KNOWN AS THE STATE 4 LOTTERY LAW. 5 "PULL-TAB." A SINGLE FOLDED OR BANDED TICKET OR A STRIP 6 TICKET OR CARD WITH A FACE COVERED TO CONCEAL ONE OR MORE 7 NUMBERS OR SYMBOLS, WHERE ONE OR MORE OF EACH SET OF TICKETS OR 8 CARDS HAS BEEN DESIGNATED IN ADVANCE AS A WINNER. "PULL-TAB" 9 ALSO INCLUDES A TICKET SOLD IN A DEVICE KNOWN AS A TICKET JAR, 10 FISH BOWL OR STAMP MACHINE. 11 "PUNCHBOARD." A BOARD, PLACARD OR OTHER DEVICE MARKET OFF IN 12 A GRID OR COLUMNS, IN WHICH EACH SECTION CONTAINS A HIDDEN 13 NUMBER OR NUMBERS, OR OTHER SYMBOL, WHICH DETERMINES THE WINNING 14 CHANCES. 15 "RAFFLE." A GAME IN WHICH A PARTICIPANT BUYS A TICKET FOR A 16 CHANCE AT A PRIZE WITH THE WINNER DETERMINED BY A RANDOM DRAWING 17 OF CORRESPONDING TICKET STUBS TO TAKE PLACE AT A LOCATION AND 18 DATE PRINTED UPON EACH TICKET. 19 "RELIGIOUS ORGANIZATION." A NOT-FOR-PROFIT GROUP OR BODY OF 20 PERSONS WHICH IS CREATED AND WHICH EXISTS FOR THE PREDOMINANT 21 PURPOSE OF REGULARLY HOLDING OR CONDUCTING RELIGIOUS ACTIVITIES 22 OR RELIGIOUS EDUCATION, WITHOUT PECUNIARY BENEFIT TO ANY 23 OFFICER, MEMBER OR SHAREHOLDER EXCEPT AS REASONABLE COMPENSATION 24 FOR ACTUAL SERVICES RENDERED TO THE ORGANIZATION. 25 SECTION 3. GAMES OF CHANCE PERMITTED. 26 EVERY CLUB TO WHICH A LICENSE HAS BEEN ISSUED UNDER THE 27 PROVISIONS OF THIS ACT MAY CONDUCT GAMES OF CHANCE FOR THE 28 PURPOSE OF RAISING FUNDS FOR LEGITIMATE CLUB PURPOSES. ALL 29 PROCEEDS OF GAMES OF CHANCE SHALL BE USED EXCLUSIVELY FOR 30 LEGITIMATE CLUB PURPOSES OR FOR THE PURCHASE OF GAMES OF CHANCE 19870S0075B2496 - 6 -
1 AS PERMITTED BY THIS ACT. 2 SECTION 4. PRIZE LIMITS. 3 (A) INDIVIDUAL PRIZE LIMIT.--THE MAXIMUM CASH VALUE WHICH 4 MAY BE AWARDED FOR ANY SINGLE CHANCE SHALL BE $500. 5 (B) WEEKLY LIMIT.--NO MORE THAN $5,000 IN CASH OR 6 MERCHANDISE SHALL BE AWARDED BY ANY CLUB IN ANY SEVEN-DAY 7 PERIOD. 8 (C) EXCEPTION.--A CLUB MAY CONDUCT A RAFFLE AND AWARD A 9 PRIZE OR PRIZES VALUED IN EXCESS OF $500 EACH ONLY UNDER THE 10 FOLLOWING CONDITIONS: 11 (1) THE LICENSING AUTHORITY HAS ISSUED A SPECIAL PERMIT 12 FOR THE RAFFLE UNDER SECTION 10. 13 (2) NO CLUB SHALL BE ELIGIBLE TO RECEIVE MORE THAN TWO 14 SPECIAL PERMITS IN ANY CALENDAR YEAR. 15 (3) ONLY ONE RAFFLE MAY BE CONDUCTED UNDER EACH SPECIAL 16 PERMIT. 17 (4) THE TOTAL CASH VALUE OF ALL PRIZES SHALL BE NO MORE 18 THAN $25,000 FOR EACH RAFFLE. 19 SECTION 5. SALES LIMITED. 20 NO PERSON SHALL SELL, OFFER FOR SALE OR FURNISH GAMES OF 21 CHANCE FOR USE WITHIN THIS COMMONWEALTH EXCEPT TO A CLUB OR 22 DISTRIBUTOR LICENSED UNDER THIS ACT. NO GAME OF CHANCE, OTHER 23 THAN A RAFFLE, SOLD, OFFERED FOR SALE OR FURNISHED FOR USE 24 WITHIN THIS COMMONWEALTH SHALL CONTAIN, PERMIT, DEPICT OR 25 DESIGNATE A PRIZE HAVING A CASH VALUE IN EXCESS OF $500. 26 SECTION 6. DISTRIBUTOR LICENSES. 27 (A) LICENSE REQUIRED.--NO PERSON SHALL SELL, OFFER FOR SALE 28 OR FURNISH GAMES OF CHANCE UNLESS SUCH PERSON SHALL HAVE 29 OBTAINED A DISTRIBUTOR LICENSE AS PROVIDED IN THIS SECTION. 30 (B) APPLICATION.--AN APPLICANT FOR THE GRANT OR RENEWAL OF A 19870S0075B2496 - 7 -
1 DISTRIBUTOR LICENSE ISSUED PURSUANT TO THIS SECTION SHALL 2 PROVIDE TO THE DEPARTMENT, UPON THE FORM PRESCRIBED, ALL OF THE 3 FOLLOWING: 4 (1) THE APPLICANT'S STATE SALES TAX NUMBER. 5 (2) THE APPLICANT'S STATE CORPORATE TAX NUMBER. 6 (3) THE APPLICANT'S STATE EMPLOYER WITHHOLDING TAX 7 NUMBER. 8 (4) THE APPLICANT'S UNEMPLOYMENT COMPENSATION ACCOUNT 9 NUMBER. 10 (5) A STATEMENT THAT: 11 (I) ALL STATE TAX REPORTS HAVE BEEN FILED AND ALL 12 STATE TAXES PAID; 13 (II) ALL STATE TAXES ARE SUBJECT TO A TIMELY 14 ADMINISTRATIVE OR JUDICIAL APPEAL; OR 15 (III) ALL STATE TAXES ARE SUBJECT TO A DULY APPROVED 16 DEFERRED PAYMENT PLAN. 17 (6) THE NAMES AND BUSINESS ADDRESSES OF ALL OWNERS, 18 OFFICERS, DIRECTORS, PARTNERS AND SALES PERSONNEL. 19 (C) WAIVER OF CONFIDENTIALITY.--AN APPLICANT FOR THE GRANT 20 OR RENEWAL OF ANY LICENSE ISSUED PURSUANT TO THIS SECTION SHALL, 21 BY THE FILING OF AN APPLICATION INSOFAR AS IT RELATES TO THE 22 DEPARTMENT, WAIVE ANY CONFIDENTIALITY WITH RESPECT TO STATE TAX 23 INFORMATION IN THE POSSESSION OF THE DEPARTMENT, THE OFFICE OF 24 ATTORNEY GENERAL OR THE DEPARTMENT OF LABOR AND INDUSTRY 25 REGARDING THAT APPLICANT, REGARDLESS OF THE SOURCE OF THAT 26 INFORMATION AND SHALL CONSENT TO THE PROVIDING OF THAT 27 INFORMATION TO THE DEPARTMENT BY THE OFFICE OF ATTORNEY GENERAL 28 OR THE DEPARTMENT OF LABOR AND INDUSTRY. 29 (D) REVIEW OF TAX STATUS.--UPON RECEIPT OF ANY APPLICATION 30 FOR THE GRANT OR RENEWAL OF ANY LICENSE ISSUED PURSUANT TO THIS 19870S0075B2496 - 8 -
1 SECTION, THE DEPARTMENT SHALL REVIEW THE STATE TAX STATUS OF THE 2 APPLICANT. THE DEPARTMENT SHALL REQUEST STATE TAX INFORMATION 3 REGARDING THE APPLICANT FROM THE OFFICE OF ATTORNEY GENERAL OR 4 THE DEPARTMENT OF LABOR AND INDUSTRY AND THAT INFORMATION SHALL 5 BE PROVIDED. 6 (E) LIMITATION ON APPROVAL.--THE DEPARTMENT SHALL NOT 7 APPROVE ANY APPLICATION FOR THE GRANT OR RENEWAL OF ANY LICENSE 8 ISSUED PURSUANT TO THIS SECTION WHERE THE APPLICANT HAS FAILED 9 TO: 10 (1) PROVIDE ANY OF THE INFORMATION REQUIRED BY 11 SUBSECTION (B); 12 (2) FILE REQUIRED STATE TAX REPORTS; OR 13 (3) PAY ANY STATE TAXES NOT SUBJECT TO A TIMELY 14 ADMINISTRATIVE OR JUDICIAL APPEAL OR SUBJECT TO A DULY 15 AUTHORIZED DEFERRED PAYMENT PLAN. 16 (F) RECORDS.--THE LICENSEE SHALL KEEP SUCH RECORDS, REPORTS 17 AND BOOKS AS THE DEPARTMENT SHALL PRESCRIBE. APPLICANTS SHALL BE 18 REQUIRED TO MAKE SUCH RECORDS, REPORTS AND BOOKS AVAILABLE AS 19 REQUIRED BY THE DEPARTMENT PURSUANT TO REGULATION. 20 (G) INELIGIBILITY.--THE DEPARTMENT SHALL NOT ISSUE OR RENEW 21 A LICENSE FOR THE SALE OF GAMES OF CHANCE TO A PERSON, INCLUDING 22 ANY CORPORATION, FIRM OR PARTNERSHIP WHICH HAS AN OFFICER, 23 DIRECTOR OR OTHER PERSON IN A SUPERVISORY OR MANAGEMENT 24 POSITION, OR EMPLOYEE ELIGIBLE TO MAKE SALES ON BEHALF OF THE 25 DISTRIBUTOR, A PERSON WHO: 26 (1) HAS BEEN CONVICTED OF A FELONY IN A STATE OR FEDERAL 27 COURT WITHIN THE PAST FIVE YEARS; OR 28 (2) HAS BEEN CONVICTED WITHIN TEN YEARS OF THE DATE OF 29 APPLICATION IN A STATE OR FEDERAL COURT OF A VIOLATION OF THE 30 ACT OF JULY 10, 1981 (P.L.214, NO.67), KNOWN AS THE BINGO 19870S0075B2496 - 9 -
1 LAW, OR OF THIS ACT OR OF A GAMBLING-RELATED OFFENSE UNDER 2 TITLE 18 OF THE PENNSYLVANIA CONSOLIDATED STATUTES OR OTHER 3 COMPARABLE STATE OR FEDERAL LAW. 4 (H) LICENSE AND RENEWAL FEES.--THE FEE FOR A DISTRIBUTOR 5 LICENSE SHALL BE $1,000. LICENSES SHALL BE RENEWABLE ON AN 6 ANNUAL BASIS. 7 (I) EXCEPTION.--THIS SECTION SHALL NOT APPLY TO THE 8 MANUFACTURE OR DISTRIBUTION OF RAFFLE TICKETS. 9 SECTION 7. REGISTRATION OF MANUFACTURERS. 10 (A) REGISTRATION REQUIRED.--NO MANUFACTURER OF GAMES OF 11 CHANCE SHALL SELL ANY GAMES OF CHANCE TO ANY PERSON UNLESS THE 12 MANUFACTURER HAS REGISTERED WITH THE DEPARTMENT AND HAS BEEN 13 ISSUED A CERTIFICATE OF REGISTRATION. 14 (B) ANNUAL CERTIFICATE; FEE.--A CERTIFICATE UNDER THIS 15 SECTION SHALL BE VALID FOR ONE YEAR. THE ANNUAL FEE FOR 16 REGISTRATION SHALL BE $2,000. 17 (C) PROHIBITED SALES.--A MANUFACTURER SHALL NOT SELL GAMES 18 OF CHANCE TO ANY PERSON NOT LICENSED AS A DISTRIBUTOR UNLESS THE 19 MANUFACTURER IS ALSO A LICENSED DISTRIBUTOR. 20 (D) EXCEPTION.--THIS SECTION SHALL NOT APPLY TO THE 21 MANUFACTURE OR DISTRIBUTION OF RAFFLE TICKETS. 22 SECTION 8. REGULATIONS OF DEPARTMENT. 23 THE DEPARTMENT SHALL PROMULGATE REGULATIONS TO: 24 (1) IMPOSE MINIMUM STANDARDS AND RESTRICTIONS APPLICABLE 25 TO GAMES OF CHANCE MANUFACTURED FOR SALE IN THIS 26 COMMONWEALTH, WHICH MAY INCLUDE STANDARDS AND RESTRICTIONS 27 WHICH SPECIFY THE MAXIMUM NUMBER OF CHANCES AVAILABLE TO BE 28 SOLD FOR ANY SINGLE GAME OR PRIZE AND SUCH OTHER STANDARDS 29 AND RESTRICTIONS AS THE DEPARTMENT DEEMS NECESSARY FOR THE 30 PURPOSES OF THIS ACT. THE DEPARTMENT SHALL CONSIDER STANDARDS 19870S0075B2496 - 10 -
1 ADOPTED BY THE NATIONAL ASSOCIATION OF GAMBLING REGULATORY 2 AGENCIES AND OTHER STANDARDS COMMONLY ACCEPTED IN THE 3 INDUSTRY. 4 (2) ESTABLISH PROCEDURES BY WHICH MANUFACTURERS MAY 5 REGISTER AND DISTRIBUTORS OF GAMES OF CHANCE MAY APPLY FOR 6 LICENSURE ON FORMS WHICH THE DEPARTMENT SHALL PROVIDE. 7 (3) PROVIDE FOR THE SUSPENSION OR REVOCATION OF 8 DISTRIBUTION LICENSES OR MANUFACTURER PERMITS FOR VIOLATIONS 9 OF THIS ACT OR REGULATIONS OF THE DEPARTMENT. 10 (4) CARRY OUT OTHER PROVISIONS OF THIS ACT. 11 SECTION 9. LICENSING OF CLUBS TO CONDUCT GAMES OF CHANCE. 12 (A) LICENSE REQUIRED.--NO CLUB SHALL CONDUCT OR OPERATE ANY 13 GAMES OF CHANCE UNLESS SUCH CLUB HAS OBTAINED AND MAINTAINS A 14 VALID LICENSE ISSUED PURSUANT TO THIS SECTION. 15 (B) ISSUANCE AND FEES.--THE LICENSING AUTHORITY SHALL 16 LICENSE, UPON APPLICATION, ANY CLUB MEETING THE REQUIREMENTS FOR 17 LICENSURE CONTAINED IN THIS ACT TO CONDUCT AND OPERATE GAMES OF 18 CHANCE AT ONE LOCATION IN THE COUNTY. THE LICENSE FEE TO BE 19 CHARGED TO EACH CLUB SHALL BE $100. LICENSES SHALL BE RENEWABLE 20 ANNUALLY. 21 (C) DISPLAY.--LICENSES ISSUED PURSUANT TO THIS SECTION SHALL 22 BE PUBLICLY DISPLAYED ON THE PREMISES. 23 (D) OPERATION.--EACH LICENSED CLUB SHALL COMPLY WITH THE 24 FOLLOWING RESTRICTIONS AND RULES GOVERNING THE OPERATION OF 25 GAMES OF CHANCE: 26 (1) NO PERSON UNDER 18 YEARS OF AGE, OR IN THE CASE OF A 27 CLUB HOLDING A LIQUOR LICENSE, 21 YEARS OF AGE, SHALL BE 28 PERMITTED TO OPERATE OR PLAY GAMES OF CHANCE. 29 (2) NO CLUB SHALL PERMIT ANY PERSON WHO HAS BEEN 30 CONVICTED OF A FELONY OR A VIOLATION OF THE ACT OF JULY 10, 19870S0075B2496 - 11 -
1 1981 (P.L.214, NO.67), KNOWN AS THE BINGO LAW, OR OF THIS ACT 2 TO MANAGE, SETUP, SUPERVISE OR PARTICIPATE IN THE OPERATION 3 OF GAMES OF CHANCE. 4 (3) NO CLUB SHALL PAY ANY COMPENSATION TO ANY PERSON FOR 5 CONDUCTING ANY GAMES OF CHANCE, EXCEPT AS PART OF THE SALARY 6 OR OTHER NORMAL COMPENSATION PAID TO CLUB MANAGERS, BAR 7 PERSONNEL, OFFICERS AND DIRECTORS. OTHER PERSONS MAY CONDUCT 8 GAMES OF CHANCE ONLY IF THEY ARE BONA FIDE MEMBERS OF THE 9 CLUB. 10 (4) GAMES SHALL BE CONDUCTED ONLY ON THE LICENSED 11 PREMISES, EXCEPT THAT RAFFLES MAY BE CONDUCTED AT OTHER 12 LOCATIONS. 13 (5) THE CLUB SHALL OWN THE PREMISES UPON WHICH GAMES OF 14 CHANCE ARE PLAYED OR SHALL LEASE SUCH PREMISES UNDER A 15 WRITTEN AGREEMENT FOR A RENTAL WHICH IS NOT DETERMINED BY 16 EITHER THE AMOUNT OF RECEIPTS REALIZED FROM THE PLAYING OF 17 GAMES OF CHANCE NOR THE NUMBER OF PEOPLE ATTENDING. A CLUB 18 SHALL NOT LEASE SUCH PREMISES FROM ANY PERSON WHO HAS BEEN 19 CONVICTED OF A VIOLATION OF THIS ACT. 20 (6) GAMES, OTHER THAN RAFFLES, SHALL BE PURCHASED ONLY 21 FROM MANUFACTURERS AND DISTRIBUTORS APPROVED BY THE 22 DEPARTMENT. 23 (E) APPLICATION FOR LICENSE.--EACH CLUB SHALL APPLY TO THE 24 LICENSING AUTHORITY FOR A LICENSE ON A FORM TO BE PRESCRIBED BY 25 THE SECRETARY OF REVENUE. THE FORM SHALL CONTAIN AN AFFIDAVIT TO 26 BE AFFIRMED BY THE EXECUTIVE OFFICER OR SECRETARY OF THE CLUB 27 STATING THAT: 28 (1) NO PERSON UNDER 18 YEARS OF AGE, OR IN THE CASE OF A 29 CLUB HOLDING A LIQUOR LICENSE, 21 YEARS OF AGE, WILL BE 30 PERMITTED BY THE CLUB TO OPERATE OR PLAY GAMES OF CHANCE. 19870S0075B2496 - 12 -
1 (2) THE FACILITY IN WHICH THE GAMES OF CHANCE ARE TO BE 2 PLAYED HAS ADEQUATE MEANS OF INGRESS AND EGRESS AND ADEQUATE 3 SANITARY FACILITIES AVAILABLE IN THE AREA. 4 (3) THE CLUB IS THE OWNER OF THE PREMISES UPON WHICH THE 5 GAMES OF CHANCE ARE PLAYED OR, IF IT IS NOT, THAT THE CLUB IS 6 NOT LEASING SUCH PREMISES FROM THE OWNER THEREOF UNDER AN 7 ORAL AGREEMENT, NOR IS IT LEASING SUCH PREMISES FROM THE 8 OWNER THEREOF UNDER A WRITTEN AGREEMENT AT A RENTAL WHICH IS 9 DETERMINED BY THE AMOUNT OF RECEIPTS REALIZED FROM THE 10 PLAYING OF GAMES OF CHANCE OR BY THE NUMBER OF PEOPLE 11 ATTENDING. 12 SECTION 10. SPECIAL PERMITS. 13 (A) ISSUANCE AND FEE.--THE LICENSING AUTHORITY SHALL ISSUE A 14 SPECIAL PERMIT FOR EACH RAFFLE IN WHICH THE LICENSEE PROPOSES TO 15 AWARD INDIVIDUAL PRIZES HAVING A CASH VALUE IN EXCESS OF $500. 16 THE LICENSING AUTHORITY MAY ESTABLISH AND COLLECT A FEE FOR THE 17 ISSUANCE OF SPECIAL PERMITS UNDER THIS SECTION. 18 (B) PERMIT APPLICATION.--EACH SPECIAL PERMIT APPLICATION 19 SHALL SPECIFY THE LOCATION OR LOCATIONS AT WHICH THE RAFFLE WILL 20 BE HELD, THE NUMBER OF CHANCES TO BE SOLD, THE PRICE PER CHANCE 21 AND THE CASH VALUE OF THE PRIZE OR PRIZES TO BE AWARDED. 22 (C) PERMITTED ACTIVITIES.--A CLUB ISSUED A SPECIAL PERMIT 23 UNDER THIS SECTION MAY CONDUCT THE RAFFLE AT THE LOCATION OR 24 LOCATIONS SPECIFIED IN THE PERMIT AND MAY USE RAFFLE TICKETS 25 OBTAINED FROM A SOURCE OTHER THAN A LICENSED DISTRIBUTOR. 26 SECTION 11. REVOCATION OF LICENSES. 27 (A) GROUNDS.--THE LICENSING AUTHORITY SHALL REVOKE OR REFUSE 28 TO RENEW THE LICENSE OF ANY CLUB WHENEVER THE DISTRICT ATTORNEY 29 FINDS UPON COMPLAINT AND INVESTIGATION THAT: 30 (1) ANY OF THE FUNDS DERIVED FROM THE OPERATION OF GAMES 19870S0075B2496 - 13 -
1 OF CHANCE ARE USED FOR ANY PURPOSE OTHER THAN FOR LEGITIMATE 2 CLUB PURPOSES OR FOR THE PURCHASE OF GAMES OF CHANCE AS 3 PERMITTED BY THIS ACT. 4 (2) ANY PERSON UNDER 18 YEARS OF AGE, OR IN THE CASE OF 5 A CLUB HOLDING A LIQUOR LICENSE, A PERSON UNDER 21 YEARS OF 6 AGE, IS OPERATING OR PLAYING GAMES OF CHANCE AS DEFINED IN 7 THIS ACT. 8 (3) THE CLUB HAS PERMITTED ANY PERSON WHO HAS BEEN 9 CONVICTED OF A FELONY OR A VIOLATION OF THE ACT OF JULY 10, 10 1981 (P.L.214, NO.67), KNOWN AS THE BINGO LAW, OR OF THIS 11 ACT, TO MANAGE, SET UP, SUPERVISE OR PARTICIPATE IN THE 12 OPERATION OF GAMES OF CHANCE. 13 (4) THE FACILITY IN WHICH THE GAMES OF CHANCE ARE PLAYED 14 DOES NOT HAVE ADEQUATE MEANS OF INGRESS AND EGRESS AND DOES 15 NOT HAVE ADEQUATE SANITARY FACILITIES AVAILABLE IN THE AREA. 16 (5) ANY PERSON OR PERSONS OTHER THAN A MANAGER, OFFICER, 17 DIRECTOR, BAR PERSONNEL OR A BONA FIDE MEMBER OF A CLUB HAVE 18 BEEN INVOLVED IN MANAGING, SETTING UP, OPERATING OR RUNNING 19 GAMES OF CHANCE. 20 (6) ANY PERSON HAS RECEIVED COMPENSATION FOR CONDUCTING 21 GAMES OF CHANCE, EXCEPT AS PERMITTED UNDER THIS ACT. 22 (7) ANY PRIZE HAS BEEN AWARDED IN EXCESS OF THE LIMITS 23 PERMITTED UNDER THIS ACT. 24 (8) THE CLUB HAS VIOLATED ANY CONDITION OF A SPECIAL 25 PERMIT ISSUED PURSUANT TO SECTION 10. 26 (9) THE CLUB CONDUCTS THE GAMES OF CHANCE UPON PREMISES 27 WHICH IT DOES NOT OWN OR LEASE IN ACCORDANCE WITH THIS ACT 28 AND IS EITHER: 29 (I) LEASING SUCH PREMISES FROM THE OWNER THEREOF 30 UNDER AN ORAL AGREEMENT; OR 19870S0075B2496 - 14 -
1 (II) LEASING SUCH PREMISES FROM THE OWNER THEREOF 2 UNDER A WRITTEN AGREEMENT AT A RENTAL WHICH IS DETERMINED 3 BY THE AMOUNT OF RECEIPTS REALIZED FROM THE PLAYING OF 4 GAMES OF CHANCE. 5 (10) FALSE OR ERRONEOUS INFORMATION WAS PROVIDED IN THE 6 ORIGINAL NOTARIZED APPLICATION. 7 (11) A CLUB HAS BEEN CONVICTED OF A VIOLATION OF THIS 8 ACT AS EVIDENCED BY A CERTIFIED RECORD OF THE CONVICTION. 9 (B) PRODUCTION OF RECORDS.--THE DISTRICT ATTORNEY MAY 10 REQUIRE LICENSEES TO PRODUCE THEIR BOOKS, ACCOUNTS AND RECORDS 11 RELATING TO THE CONDUCT OF GAMES OF CHANCE IN ORDER TO DETERMINE 12 WHETHER A LICENSE SHOULD BE REVOKED OR RENEWAL THEREOF DENIED. 13 LICENSEES SHALL ALSO BE REQUIRED TO PRODUCE THEIR LICENSE, 14 BOOKS, ACCOUNTS AND RECORDS RELATING TO THE CONDUCT OF GAMES OF 15 CHANCE TO OTHER LAW ENFORCEMENT OFFICIALS UPON PROPER REQUEST. 16 SECTION 12. ENFORCEMENT. 17 (A) DISTRICT ATTORNEY.--THE DISTRICT ATTORNEY SHALL 18 INVESTIGATE ALLEGED VIOLATIONS OF THIS ACT. IF THE DISTRICT 19 ATTORNEY FINDS PROBABLE CAUSE TO BELIEVE THAT A VIOLATION HAS 20 OCCURRED, HE MAY FILE A COMPLAINT AGAINST THE ALLEGED VIOLATOR 21 IN THE COURT OF COMMON PLEAS OF SAID COUNTY, EXCEPT IN COUNTIES 22 OF THE FIRST CLASS WHERE THE COMPLAINT MAY BE FILED IN THE 23 MUNICIPAL COURT. IN ADDITION, THE DISTRICT ATTORNEY SHALL 24 PROSECUTE SAID COMPLAINT IN THE MANNER PROVIDED BY LAW. 25 (B) OTHER LAW ENFORCEMENT OFFICIALS.--NOTHING IN THIS ACT 26 SHALL BE INTERPRETED TO RESTRICT THE POWER OF STATE, COUNTY OR 27 LOCAL LAW ENFORCEMENT OFFICIALS TO CONDUCT INVESTIGATIONS AND 28 ENFORCE THE PROVISIONS OF THIS ACT. 29 SECTION 13. LOCAL OPTION. 30 (A) ELECTION TO BE HELD.--NO ANY MUNICIPALITY, AN ELECTION 19870S0075B2496 - 15 -
1 MAY BE HELD ON THE DATE OF THE PRIMARY ELECTION IMMEDIATELY 2 PRECEDING ANY MUNICIPAL ELECTION, BUT NOT MORE THAN ONCE IN FOUR 3 YEARS, TO DETERMINE THE WILL OF THE ELECTORS WITH RESPECT TO THE 4 ISSUANCE OF LICENSES, WITHIN THE LIMITS OF SUCH MUNICIPALITY, 5 UNDER THE PROVISIONS OF THIS ACT. WHERE AN ELECTION SHALL HAVE 6 BEEN HELD AT THE PRIMARY ELECTION PRECEDING A MUNICIPAL ELECTION 7 IN ANY YEAR, ANOTHER ELECTION MAY BE HELD UNDER THE PROVISIONS 8 OF THIS ACT AT THE PRIMARY ELECTION OCCURRING THE FOURTH YEAR 9 AFTER SUCH PRIOR ELECTION. WHENEVER ELECTORS EQUAL TO AT LEAST 10 25% OF THE HIGHEST VOTE CAST FOR ANY OFFICE IN THE MUNICIPALITY 11 AT THE LAST PRECEDING GENERAL ELECTION SHALL FILE A PETITION 12 WITH THE COUNTY BOARD OF ELECTIONS OF THE COUNTY, OR THE 13 GOVERNING BODY OF THE MUNICIPALITY ADOPTS, BY A MAJORITY VOTE, A 14 RESOLUTION TO PLACE SUCH A QUESTION ON THE BALLOT AND A COPY OF 15 THE RESOLUTION IS FILED WITH THE BOARD OF ELECTIONS OF THE 16 COUNTY, FOR A REFERENDUM ON THE QUESTION OF ISSUING LICENSES, 17 THE COUNTY BOARD OF ELECTIONS SHALL CAUSE A QUESTION TO BE 18 PLACED ON THE BALLOT OR ON THE VOTING MACHINE BOARD AND 19 SUBMITTED AT THE PRIMARY ELECTION IMMEDIATELY PRECEDING THE 20 MUNICIPAL ELECTION. THE QUESTION SHALL BE IN THE FOLLOWING FORM: 21 DO YOU FAVOR THE ISSUANCE OF LICENSES 22 TO CONDUCT SMALL GAMES OF CHANCE IN THE 23 OF ? 24 (B) VOTE.--IF A MAJORITY OF THE ELECTORS VOTING ON THE 25 QUESTION VOTE "YES," THEN LICENSES SHALL BE ISSUED BY THE 26 LICENSING AUTHORITY IN SUCH MUNICIPALITY, BUT IF A MAJORITY OF 27 THE ELECTORS VOTING ON ANY SUCH QUESTION VOTE "NO," THEN THE 28 LICENSING AUTHORITY SHALL HAVE NO POWER TO ISSUE OR TO RENEW, 29 UPON THEIR EXPIRATION, ANY LICENSES IN SUCH MUNICIPALITY, UNLESS 30 AND UNTIL, AT A LATER ELECTION, A MAJORITY OF THE VOTING 19870S0075B2496 - 16 -
1 ELECTORS VOTE "YES" ON SUCH QUESTION. 2 (C) VOTING PROCEEDINGS.--PROCEEDINGS UNDER THIS SECTION 3 SHALL BE IN ACCORDANCE WITH THE PROVISIONS OF THE ACT OF JUNE 3, 4 1937 (P.L.1333, NO.320), KNOWN AS THE PENNSYLVANIA ELECTION 5 CODE. 6 (D) APPLICABILITY.--THIS ACT APPLIES ONLY TO THOSE CLUBS 7 LOCATED IN MUNICIPALITIES WHICH HAVE ADOPTED THE PROVISIONS OF 8 THIS ACT BY AN AFFIRMATIVE VOTE IN A MUNICIPAL REFERENDUM IN 9 ACCORDANCE WITH THE PROVISIONS OF THIS SECTION. 10 (E) WITHDRAWAL OF APPROVAL.--THE REFERENDUM PROCEDURE 11 CONTAINED IN THIS SECTION SHALL ALSO BE AVAILABLE TO WITHDRAW 12 THE APPROVAL OF THE ISSUANCE OF SUCH LICENSES WITHIN SUCH 13 MUNICIPALITY WHICH WAS GRANTED THROUGH A PRIOR REFERENDUM. 14 SECTION 14. ADVERTISING. 15 IT SHALL BE UNLAWFUL FOR ANY CLUB OR PERSON TO ADVERTISE THE 16 PRIZES OR THEIR DOLLAR VALUE TO BE AWARDED IN GAMES OF CHANCE, 17 PROVIDED THAT PRIZES MAY BE IDENTIFIED ON RAFFLE TICKETS. 18 SECTION 15. CERTAIN PERSONS PROHIBITED. 19 NO DISTRIBUTOR NOR ANY PERSON WHO HAS BEEN CONVICTED OF A 20 FELONY OR OF A VIOLATION OF THE ACT OF JULY 10, 1981 (P.L.214, 21 NO.67), KNOWN AS THE BINGO LAW, OR OF THIS ACT OR OF ANY 22 COMPARABLE STATE OR FEDERAL LAW SHALL HAVE A PECUNIARY INTEREST 23 IN THE OPERATION OR PROCEEDS OF GAMES OF CHANCE. 24 SECTION 16. PENALTIES. 25 (A) SUMMARY OFFENSE.--ANY CLUB VIOLATING THE PROVISIONS OF 26 THIS ACT SHALL BE GUILTY OF A SUMMARY OFFENSE, AND UPON 27 CONVICTION THEREOF SHALL BE SENTENCED TO PAY A FINE NOT 28 EXCEEDING $1,000 AND SHALL FORFEIT ANY LICENSE ISSUED TO THE 29 CLUB, AND IT SHALL BE INELIGIBLE FOR A LICENSE RENEWAL FOR 30 30 MONTHS THEREAFTER. 19870S0075B2496 - 17 -
1 (B) MISDEMEANOR.--ANY PERSON WHO CONDUCTS OR ASSISTS IN THE 2 CONDUCTING OF GAMES OF CHANCE IN VIOLATION OF THE PROVISIONS OF 3 THIS ACT, IS GUILTY OF A MISDEMEANOR OF THE FIRST DEGREE. 4 (C) DISTRIBUTORS AND MANUFACTURERS.--ANY PERSON WHO 5 DISTRIBUTES GAMES OF CHANCE WITHOUT A LICENSE OR IN VIOLATION OF 6 ANY PROVISION OF THIS ACT OR APPLICABLE REGULATIONS, AND ANY 7 MANUFACTURER OF GAMES OF CHANCE WHO DELIVERS GAMES OF CHANCE FOR 8 SALE OR DISTRIBUTION IN THIS COMMONWEALTH WHO FAILS TO OBTAIN A 9 PERMIT THEREFOR, IS GUILTY OF A MISDEMEANOR OF THE FIRST DEGREE, 10 PROVIDED THAT NO LICENSE OR PERMIT SHALL BE REQUIRED FOR THE 11 MANUFACTURE OR DISTRIBUTION OF RAFFLE TICKETS. 12 (D) RIGGING.--A PERSON COMMITS A MISDEMEANOR OF THE FIRST 13 DEGREE IF, WITH INTENT TO PREVENT A GAME OF CHANCE FROM BEING 14 CONDUCTED IN ACCORDANCE WITH THE REQUIREMENTS OF THIS ACT OR THE 15 RULES AND USAGES GOVERNING THE GAME, HE: 16 (1) CONFERS OR OFFERS OR AGREES TO CONFER ANY BENEFIT 17 UPON OR THREATENS ANY INJURY TO A PARTICIPANT OR OTHER PERSON 18 ASSOCIATED WITH THE GAME; 19 (2) TEMPERS WITH ANY PERSON OR GAMES; OR 20 (3) SOLICITS, ACCEPTS OR AGREES TO ACCEPT ANY BENEFIT. 21 SECTION 17. EFFECTIVE DATE. 22 THIS ACT SHALL TAKE EFFECT IN 60 DAYS. L5L72CHF/19870S0075B2496 - 18 -