HOUSE AMENDED
        PRIOR PRINTER'S NO. 80                        PRINTER'S NO. 2496

THE GENERAL ASSEMBLY OF PENNSYLVANIA


SENATE BILL

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
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     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
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     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.






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