PRINTER'S NO.  625

  

THE GENERAL ASSEMBLY OF PENNSYLVANIA

  

SENATE BILL

 

No.

444

Session of

2011

  

  

INTRODUCED BY EARLL, FOLMER, SOLOBAY, CORMAN, ORIE, SCARNATI, BOSCOLA, FONTANA, FERLO, RAFFERTY, ALLOWAY, PICCOLA, COSTA, YAW, HUGHES, KASUNIC, WAUGH, M. WHITE, WASHINGTON, EICHELBERGER, BROWNE, VOGEL, LEACH, YUDICHAK, PIPPY AND MENSCH, FEBRUARY 23, 2011

  

  

REFERRED TO FINANCE, FEBRUARY 23, 2011  

  

  

  

AN ACT

  

1

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

2

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

3

eligible organizations to conduct games of chance, for the

4

licensing of persons to distribute games of chance, for the

5

registration of manufacturers of games of chance, and for

6

suspensions and revocations of licenses and permits;

7

requiring records; providing for local referendum by

8

electorate; and prescribing penalties," further providing for

9

definitions and for prize limits; providing for insured games

10

of chance; further providing for sales limited, for

11

regulations of department, for licensing of eligible

12

organizations to conduct games of chance, for revocation of

13

licenses, for advertising and for penalties; and making

14

editorial changes.

15

The General Assembly of the Commonwealth of Pennsylvania

16

hereby enacts as follows:

17

Section 1.  Section 2 of the act of December 19, 1988

18

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

19

Chance Act, is amended to read:

20

Section 2.  Legislative intent.

21

The General Assembly hereby declares that the playing of

22

small games of chance for the purpose of raising funds, by

 


1

certain nonprofit associations, for the promotion of charitable

2

or civic purposes, is in the public interest.

3

It is hereby declared to be the policy of the General

4

Assembly that all phases of licensing, operation and regulation

5

of [small] games of chance be strictly controlled, and that all

6

laws and regulations with respect thereto as well as all

7

gambling laws should be strictly construed and rigidly enforced.

8

The General Assembly recognizes the possibility of

9

association between commercial gambling and organized crime, and

10

wishes to discourage commercialization of [small] games of

11

chance, prevent participation by organized crime and prevent the

12

diversion of funds from the purposes herein authorized.

13

Section 2.  The definitions of "daily drawing," "games of

14

chance," "raffle" and "weekly drawing" in section 3 of the act,

15

amended or added December 19, 1990 (P.L.812, No.195) and October

16

18, 2000 (P.L.602, No.79), are amended to read:

17

Section 3.  Definitions.

18

The following words and phrases when used in this act shall

19

have the meanings given to them in this section unless the

20

context clearly indicates otherwise:

21

* * *

22

"Daily drawing."  A game of chance in which a bona fide

23

member selects or is assigned a number for a chance at a prize

24

with the winner determined by [a] random drawing to take place

25

on the eligible organization's premises [during the same

26

operating day]. The term includes games of chance commonly known

27

as "member sign-in lotteries" and "half-and-half lotteries."

28

Nothing in this act shall be construed to prohibit the carrying

29

over of a jackpot where the winning number has not been entered

30

in the game of chance on a particular operating day. Daily

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1

drawing winners may be determined with the aid of a passive

2

selection device or reference to drawings conducted by the

3

department pursuant to the act of August 26, 1971 (P.L.351,

4

No.91), known as the State Lottery Law. Daily drawing chances

5

may not be sold for an amount in excess of $1, and no more than

6

one chance per individual may be sold [to an individual during

7

the same operating day.] per drawing. Nothing in this definition

8

shall be construed to restrict a licensed eligible organization

9

from conducting more than one drawing per day.

10

* * *

11

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

12

drawings, raffles and pull-tabs, as defined in this act,

13

provided that no such game shall be played by or with the

14

assistance of any mechanical or electrical devices or media

15

other than a dispensing machine or passive selection device and

16

further provided that the particular chance taken by any person

17

in any such game shall not be made contingent upon any other

18

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

19

determined solely at the discretion of the purchaser. This

20

definition shall not be construed to authorize any other form of

21

gambling currently prohibited under any provision of Title 18 of

22

the Pennsylvania Consolidated Statutes (relating to crimes and

23

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

24

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

25

games commonly known as "slot machines" or "video poker."

26

* * *

27

"Raffle."  A game of chance in which a participant buys a

28

ticket for a chance at a prize with the winner determined by a

29

random drawing of corresponding ticket stubs to take place at a

30

location and date or dates printed upon each ticket. Such games

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1

of chance shall include lotteries but not daily drawings. Raffle

2

winners may be determined by reference to drawings conducted by

3

the department pursuant to the act of August 26, 1971 (P.L.351,

4

No.91), known as the State Lottery Law.

5

* * *

6

"Weekly drawing."  A game of chance in which a bona fide

7

member selects or receives a number or numbers for a chance at a

8

prize with the winner determined by a random drawing to take

9

place on the licensed eligible organization's premises at the

10

end of a seven-day period. Nothing in this act shall be

11

construed to prohibit the carrying over of a jackpot where the

12

winning number has not been entered in the game in a particular

13

week. Weekly drawing winners may be determined with the aid of a

14

passive selection device or reference to drawings conducted by

15

the Department of Revenue pursuant to the act of August 26, 1971

16

(P.L.351, No.91), known as the State Lottery Law. Weekly drawing

17

chances may not be sold for an amount in excess of $1.

18

Section 3.  Section 5 of the act, amended December 19, 1990

19

(P.L.812, No.195) and October 18, 2000 (P.L.602, No.79), is

20

amended to read:

21

Section 5.  Prize limits.

22

(a)  Individual prize limit.--[The] Except as provided for in

23

subsection (i), the maximum cash value which may be awarded for

24

any single chance shall be [$500] $1,000.

25

(b)  Weekly limit.--No more than [$5,000] $20,000 in cash or

26

merchandise shall be awarded by any licensed eligible 

27

organization in any seven-day period. 

28

(c)  Limit on raffles.--No more than $5,000 in cash or

29

merchandise shall be awarded in raffles in any calendar month.

30

(d)  Exception.--[An] A licensed eligible organization may

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1

conduct a raffle and award a prize or prizes valued in excess of

2

[$500] $1,000 each only under the following conditions:

3

(1)  The licensing authority has issued a special permit

4

for the raffle under section 11.

5

(2)  [Eligible organizations] A licensed eligible

6

organization shall be eligible to receive no more than two

7

special permits in any licensed year except that volunteer

8

fire, ambulance and rescue organizations shall be eligible to

9

receive no more than three special permits in any licensed

10

year.

11

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

12

permit.

13

(4)  The total cash value of all prizes shall be no more

14

than $100,000 per calendar year.

15

(e)  Limit on daily drawings.--Daily drawings shall be

16

governed by the prize [limitations] limitation contained in

17

[subsections (a) and (b)] subsection (a). [An eligible

18

organization shall not conduct daily drawings during a period

19

when a weekly drawing is taking place.]

20

(f)  Exception.--The prize limitation contained in

21

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

22

daily drawing under the following circumstances: a daily drawing

23

may award a prize where the cash value is in excess of [$500] 

24

$1,000 if such prize is the result of a carryover of a drawing

25

or drawings which resulted from the winning number in such

26

drawing or drawings not being among the eligible entrants in

27

such drawings. Nothing contained herein shall authorize the

28

prize [limitations] limitation as contained in [subsections (a)

29

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

30

to conduct a drawing on an operating day during which chances

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1

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

2

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

3

chance was sold to an eligible participant.

4

(g)  Daily drawing and weekly drawing exception.--When a

5

daily drawing or weekly drawing is set up or conducted in such a

6

manner as to pay out or award 100% of the gross revenues

7

generated from such drawing, the limitations contained in

8

subsection (b) shall not apply.

9

(h)  Limit on weekly drawings.--Weekly drawings shall be

10

governed by the prize limitations contained in subsection (b).

11

The prize limitation contained in subsection (b) may be exceeded

12

by a weekly drawing under the following circumstances: a weekly

13

drawing may award a prize where the cash value is in excess of

14

[$5,000] $20,000 if such prize is the result of a carryover of a

15

drawing or drawings which resulted from the winning number or

16

numbers in such drawing or drawings not being among the eligible

17

entrants in such drawings. Nothing contained in this act shall

18

authorize the prize limitations as contained in subsection (b)

19

to be exceeded as a result of a failure to conduct a drawing for

20

a week during which chances were sold for a weekly drawing or

21

for a weekly drawing for which chances were sold in excess of

22

$1. [An eligible organization shall not conduct weekly drawings

23

during a period when a daily drawing is taking place.]

24

(i)  Progressive games of chance.--Progressive games of

25

chance shall be permitted with a maximum cash value of $5,000.

26

Contributions to the pot shall be counted against the limit for

27

the week in which the contribution is made except that when the

28

limit is reached the amount awarded shall be counted toward the

29

limit only to the extent it was not previously counted toward a

30

prior week's limit.

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1

(j)  Definitions.-- For the purpose of this section,

2

progressive games of chance are games of chance in which a

3

winning ticket awards the ticket holder an additional chance at

4

another game of chance or games of chance.

5

Section 4.  The act is amended by adding a section to read:

6

Section 5.1.  Insured games of chance.

7

(a)  Authorization.--Notwithstanding any provision of this

8

act to the contrary, a licensed eligible organization may

9

conduct games of chance using insured games. Insured games of

10

chance sold by a licensed distributor shall be backed by a valid

11

insurance contract issued by an insurance company licensed to do

12

business in this Commonwealth. Proof of the insurance contract

13

must be provided to the department prior to the game of chance

14

being sold.

15

(b)  Revocation of license.--The license of a distributor and

16

an insurance company issuing a contract for an insured game of

17

chance may be suspended or revoked for failure to pay an award.

18

(c)  Definition.--For the purposes of this section, an

19

insured game of chance is a game of chance in which the licensed

20

distributor or other licensed third party guarantees making the

21

payment on a win of a jackpot.

22

Section 5.  Sections 6 and 9 of the act, amended December 19,

23

1990 (P.L.812, No.195), are amended to read:

24

Section 6.  Sales limited.

25

No person shall sell, offer for sale or furnish games of

26

chance for use within this Commonwealth except to [an] a

27

licensed eligible organization or distributor licensed under

28

this act. No game of chance, other than a raffle, sold, offered

29

for sale or furnished for use within this Commonwealth shall

30

contain, permit, depict or designate a prize having a cash value

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1

in excess of [$500] $1,000.

2

Section 9.  Regulations of department.

3

(a)  Authorization.--The department shall promulgate

4

regulations to:

5

(1)  Impose minimum standards and restrictions applicable

6

to games of chance manufactured for sale in this

7

Commonwealth, which may include standards and restrictions

8

which specify the maximum number of chances available to be

9

sold for any single game of chance or prize and such other

10

standards and restrictions as the department deems necessary

11

for the purposes of this act. The department shall consider

12

standards adopted by the National Association of Gambling

13

Regulatory Agencies and other standards commonly accepted in

14

the industry.

15

(2)  Establish procedures by which manufacturers may

16

register and distributors of games of chance may apply for

17

licensure on forms which the department shall provide.

18

(3)  Provide for the suspension or revocation of

19

distribution licenses or manufacturer certificates for

20

violations of this act or regulations of the department.

21

(4)  Carry out other provisions of this act.

22

(b)  Limitation on recordkeeping requirements.--This section

23

shall not be construed to authorize the department to promulgate

24

regulations providing for recordkeeping requirements for

25

licensed eligible organizations which require unreasonable or

26

unnecessary information or a repetitious listing of information.

27

The department shall strive to keep such recordkeeping

28

requirements from being an undue hardship or burden on licensed 

29

eligible organizations. Under no circumstances shall the

30

department require the retention of records for a period in

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1

excess of two years. 

2

(c)  Reporting requirements.--Each licensed eligible

3

organization shall report to the department prizes awarded as

4

required by section 335 of the act of March 4, 1971 (P.L.6,

5

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

6

Section 6.  Section 10 of the act, amended December 19, 1990

7

(P.L.812, No.195) and October 18, 2000 (P.L.602, No.79), is

8

amended to read:

9

Section 10.  Licensing of eligible organizations to conduct

10

games of chance.

11

(a)  License required.--No eligible organization shall

12

conduct or operate any games of chance unless such eligible

13

organization has obtained and maintains a valid license issued

14

pursuant to this section. Auxiliary groups within a licensed

15

eligible [organizations] organization shall be eligible to

16

conduct [small] games of chance using the license issued to the

17

eligible organization provided that the auxiliary group or

18

groups are listed on the application and license of the eligible

19

organization. No additional licensing fee shall be charged for

20

an auxiliary group's eligibility under this act. Auxiliary

21

groups shall not include branches, lodges or chapters of a

22

Statewide organization.

23

(b)  Issuance and fees.--The licensing authority shall

24

license, upon application, within 30 days any eligible

25

organization meeting the requirements for licensure contained in

26

this act to conduct and operate games of chance at such

27

locations within the county or in such manner as stated on the

28

application as limited by subsection (b.1). The license fee to

29

be charged to each eligible organization shall be [$100] $300,

30

except for limited occasion licenses which shall be [$10] $30.

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1

Licenses shall be renewable [annually] on a biennial basis upon 

2

the anniversary of the date of issue.

3

(b.1)  Location of [small] games of chance.--Where there

4

exists a location or premises which is the normal business or

5

operating site of the eligible organization and is owned or

6

leased by that eligible organization to conduct its normal

7

business, that site shall be the licensed premises for [small]

8

games of chance conducted by the licensed eligible organization.

9

If that location consists of more than one building and the

10

licensed eligible organization wishes to conduct its games in a

11

different building at that location from the one that is listed

12

on its application for a license and on its license, the

13

licensed eligible organization must notify, in writing, the

14

district attorney and the licensing authority of the change in

15

building site and the dates and times that will be affected.

16

When [an] a licensed eligible organization does not own or lease

17

a specific location to conduct its normal business, that

18

licensed eligible organization may use another licensed eligible

19

organization's premises to conduct its games of chance or may

20

make such other arrangements that are consistent with this act,

21

including, but not limited to, leasing a premise under a written

22

agreement for a rental which is not determined by either the

23

amount of receipts realized from the playing of games of chance

24

nor the number of people attending except that an eligible

25

organization may lease a facility for a banquet where a per head

26

charge is applied in connection with the serving of a meal. When

27

such eligible organization changes the site of its games of

28

chance from that which is listed on its application for a

29

license and on its license, the licensed eligible organization

30

must notify, in writing, the district attorney and licensing

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1

authority of the change in their [games'] games of chance site

2

and dates and times that will be affected. More than one

3

licensed eligible organization may use the same location,

4

provided that each eligible organization has its own license and

5

that the prize limitations of this act shall apply separately to

6

each licensed eligible organization.

7

(b.2)  Off-premises games of chance.--Notwithstanding any

8

other provisions of this section, [an] a licensed eligible

9

organization may conduct [small] games of chance at a location

10

off its premises when such games of chance are part of an annual

11

carnival, fair, picnic or banquet held or participated in by

12

that licensed eligible organization on a historical basis. The

13

licensed eligible organization must notify, in writing, the

14

district attorney and licensing authority of the location, date

15

and times of such events where it will be conducting [small]

16

games of chance.

17

(b.3)  Limited occasion licenses.--Eligible organizations

18

which do not own their own premises or which do not lease a

19

specific location to conduct their normal business may apply for

20

a limited occasion license to conduct [small] games of chance on

21

not more than three occasions covering a total of seven days

22

during a licensed year. A limited occasion license entitles an 

23

eligible [organizations] organization holding [such a] the 

24

license to conduct no more than two raffles during a licensed

25

year where prizes may not exceed the established limits for

26

regular monthly raffles. Holders of limited occasion licenses

27

may not apply or be granted any other license or special permit

28

under this act. No holder of a regular license or special permit

29

under this act shall apply or be granted a limited occasion

30

license.

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1

(b.4)  Gambling facility prohibited.--It shall be unlawful

2

for a person, corporation, association, partnership or other

3

business entity to offer for rent or offer for use a building or

4

facility to be used exclusively for the conducting of [small]

5

games of chance. It shall also be unlawful for any eligible

6

organization to lease under any terms a facility or building

7

which is used exclusively for the conducting of [small] games of

8

chance.

9

(c)  Display.--Licenses issued pursuant to this section shall

10

be publicly displayed at the site of the [small] games of

11

chance.

12

(d)  Operation.--Each licensed eligible organization shall

13

[comply with the following restrictions and rules governing the

14

operation of games of chance] be prohibited from the following:

15

(1)  [No] Permitting any person under 18 years of age

16

[shall be permitted] to operate or play games of chance.

17

(2)  [No eligible organization shall permit] Permitting 

18

any person who has been convicted of a felony in a Federal or

19

State court within the past five years or has been convicted

20

in a Federal or State court within the past ten years of a

21

violation of the act of July 10, 1981 (P.L.214, No.67), known

22

as the Bingo Law, or of this act to manage, set up, supervise

23

or participate in the operation of games of chance.

24

(3)  [No eligible organization shall pay] Paying any

25

compensation to any person for conducting any games of

26

chance. Games of chance may only be conducted by managers,

27

officers, directors, bar personnel and bona fide members of

28

the eligible organization.

29

(4)  [Games shall be conducted only] Conducting games of

30

chance on any premises other than on the licensed premises or

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1

as otherwise provided by this act.

2

(5)  [The eligible organization shall not lease such]

3

Leasing the licensed premises under either an oral or a

4

written agreement for a rental which is determined by either

5

the amount of receipts realized from the playing of games of

6

chance or the number of people attending, except that an

7

eligible organization may lease a facility for a banquet

8

where a per head charge is applied in connection with the

9

serving of a meal. An eligible organization shall not lease

10

such premises from any person who has been convicted of a

11

violation of this act or the Bingo Law, within the past ten

12

years.

13

(6)  [Games] Purchasing games of chance, other than

14

raffles, daily drawings and weekly drawings[, shall be

15

purchased only from manufacturers and distributors] from any

16

person, other than a manufacturer or distributor approved by

17

the department.

18

(7)  [No licensed eligible organization shall permit]

19

Except as provided in subsection (d.1)(1), permitting its

20

licensed premises to be used for [small] games of chance by

21

another licensed eligible organization at the same time that

22

it is conducting [small] games of chance on the licensed 

23

premises. When a licensed eligible organization is permitting

24

another licensed eligible organization to use its licensed 

25

premises for purposes of [small] games of chance, it must

26

cease the operation of its own [small] games of chance during

27

the period that the other licensed eligible organization is

28

conducting its games of chance on the licensed premises.

29

[(8)  Raffle tickets may be sold off the licensed premise

30

in any municipality in this Commonwealth which has adopted

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1

the provisions of this act by an affirmative vote in a

2

municipal referendum. A licensed eligible organization which

3

plans to sell raffle tickets in a municipality located in a

4

county other than the county in which the eligible

5

organization is licensed must notify that county's district

6

attorney and licensing authority as to the location and the

7

dates that the eligible organization plans to sell raffle

8

tickets.]

9

(d.1)  Sale of raffle tickets.--

10

(1)  A licensed eligible organization may sell on its

11

licensed premises the raffle tickets of another licensed

12

eligible organization that has been issued a limited occasion

13

license under subsection (b.3).

14

(2)  Raffle tickets may be sold off the licensed premises

15

in any municipality in this Commonwealth which has adopted

16

the provisions of this act by an affirmative vote in a

17

municipal referendum. A licensed eligible organization which

18

plans to sell raffle tickets in a municipality located in a

19

county other than the county in which the licensed eligibile

20

organization is licensed must notify that county's district

21

attorney and licensing authority as to the location and the

22

dates that the licensed eligible organization plans to sell

23

raffle tickets.

24

(d.2)  Bank account and records.--The licensed eligible

25

organization shall keep a bank account to hold the proceeds of

26

games of chance, which shall be separate from all other funds

27

belonging to the licensed eligible organization. Account records

28

shall show all expenditures and income and shall be retained by

29

the licensed eligible organization for at least two years.

30

(e)  Application for license.--Each eligible organization

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1

shall apply to the licensing authority for a license on a form

2

to be prescribed by the Secretary of Revenue. The form shall

3

contain an affidavit to be affirmed by the executive officer or

4

secretary of the eligible organization stating that:

5

(1)  No person under 18 years of age will be permitted by

6

the eligible organization to operate or play games of chance.

7

(2)  The facility in which the games of chance are to be

8

played has adequate means of ingress and egress and adequate

9

sanitary facilities available in the area.

10

(3)  The eligible organization is not leasing such

11

premises from the owner thereof under an oral agreement, nor

12

is it leasing such premises from the owner thereof under a

13

written agreement at a rental which is determined by the

14

amount of receipts realized from the playing of games of

15

chance or by the number of people attending, except that an

16

eligible organization may lease a facility for a banquet

17

where a per head charge is applied in connection with the

18

serving of a meal.

19

(4)  The eligible organization has complied with the

20

annual financial report filing.

21

(5)  The eligible organization has a separate bank

22

account to hold all proceeds of games of chance. 

23

(6)  The eligible organization has complied with the

24

applicable games of chance training requirements.

25

(e.1)  Financial report and training requirements.--Each

26

eligible organization shall comply with all of the following:

27

(1)  An eligible organization shall file an annual

28

financial report with the licensing authority. The following

29

shall apply:

30

(i)  The first annual report required under this

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1

paragraph shall contain information for the 12-month

2

period ending at least 60 days, but not more than 90

3

days, prior to the submission of the application.

4

Subsequent annual reports shall contain information for

5

the most recent 12-month period ending in the same month

6

as the initial report.

7

(ii)  The annual report shall detail gross receipts

8

from the conduct of games of chance, the expenses related

9

to the conduct of the games of chance, the prizes paid

10

out for games of chance and the details as to how the net

11

proceeds from games of chance were used or disbursed by

12

the eligible organization.

13

(iii)  The annual report shall be prepared on a one-

14

page form to be designed by the department. Additional

15

schedules shall be included, if necessary, to provide

16

specific details on the use or disbursement of the net

17

proceeds from games of chance by the eligible

18

organization.

19

(iv)  A copy of the most recent annual report shall

20

be filed with the application to renew the liquor license

21

of an eligible organization.

22

(2)  An eligible organization shall provide evidence to

23

the licensing authority that games of chance training has

24

been completed under this paragraph. The following shall

25

apply:

26

(i)  A minimum of four hours of training shall have

27

been completed within the 24-month period immediately

28

preceding the date of the application.

29

(ii)  The training shall have been completed by the

30

executive officer, secretary or a responsible person

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1

listed on the application for a license of the eligible

2

organization. The person receiving the training shall be

3

associated with the conduct of games of chance by the

4

eligible organization.

5

(iii)  The training shall consist of the completion

6

of training materials prepared by the department. The

7

training materials shall be designed to assist eligible

8

organizations in their compliance with statutory and

9

regulatory requirements associated with the conduct of

10

games of chance. The training materials shall be

11

available on the department's publicly accessible

12

Internet website. Upon request, the department shall

13

provide hard copies of the training materials at a cost

14

not to exceed the actual cost of printing and postage.

15

(iv)  This paragraph shall not apply if the eligible

16

organization submits an affidavit affirmed by the

17

executive officer or secretary of the eligible

18

organization that the eligible organization will not

19

conduct games of chance on 60 or more days during the

20

licensing period.

21

(f)  List of licensees.--The licensing authority, on a

22

semiannual basis, shall send a copy of all licensees to the

23

Department of Revenue.

24

(g)  List of municipalities.--The licensing authority shall

25

include with any license or renewal license issued to an

26

eligible organization, an up-to-date listing of those

27

municipalities within the licensing county which have approved

28

the referendum question on [small] games of chance.

29

(h)  Background checks.--Each application for a license shall

30

include the results of a criminal history record information

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1

check obtained from the Pennsylvania State Police, as defined in

2

18 Pa.C.S. § 9102 (relating to definitions) and permitted by 18

3

Pa.C.S. § 9121(b) (relating to general regulations), for the

4

executive officer or secretary of the eligible organization

5

making the application for a license and all other responsible

6

persons listed on the application.

7

Section 7.  Section 12(a)(12) of the act, amended December

8

19, 1990 (P.L.812, No.195), is amended and the subsection is

9

amended by adding a paragraph to read:

10

Section 12.  Revocation of licenses.

11

(a)  Grounds.--The licensing authority shall revoke or refuse

12

to renew the license of any eligible organization whenever the

13

district attorney finds upon complaint and investigation that:

14

* * *

15

(12)  The licensed eligible organization has permitted

16

another licensed eligible organization to conduct [small]

17

games of chance on its licensed premises without suspending

18

its own operation of [small] games of chance during the

19

period that the other licensed eligible organization is

20

conducting its games of chance on the licensed premises.

21

(13)  The licensed eligible organization has failed to

22

keep and maintain the records required under this act for a

23

period of two years.

24

* * *

25

Section 8.  Section 14(a) of the act is amended to read:

26

Section 14.  Local option.

27

(a)  Election to be held.--In any municipality, an election

28

may be held on the date of the primary election immediately

29

preceding any municipal election, but not more than once in four

30

years, to determine the will of the electors with respect to the

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1

issuance of licenses within the limits of such municipality

2

under the provisions of this act. Where an election shall have

3

been held at the primary election preceding a municipal election

4

in any year, another election may be held under the provisions

5

of this act at the primary election occurring the fourth year

6

after such prior election. Whenever electors equal to at least

7

25% of the highest vote cast for any office in the municipality

8

at the last preceding general election shall file a petition

9

with the county board of elections of the county, or the

10

governing body of the municipality adopts, by a majority vote, a

11

resolution to place such a question on the ballot and a copy of

12

the resolution is filed with the board of elections of the

13

county, for a referendum on the question of issuing licenses,

14

the county board of elections shall cause a question to be

15

placed on the ballot or on the voting machine board and

16

submitted at the primary election immediately preceding the

17

municipal election. The question shall be in the following form:

18

Do you favor the issuance of licenses

19

to conduct [small] games of chance in the

20

                 of                     ?

21

* * *

22

Section 9.  Sections 15 and 17(a), (d) and (e) of the act,

23

amended December 19, 1990 (P.L.812, No.195), are amended to

24

read:

25

Section 15.  Advertising.

26

[It shall be unlawful for any eligible organization or person

27

to] Any licensed eligible organization or person may advertise

28

the prizes or their dollar value to be awarded in games of

29

chance, provided that [prizes may be identified on raffle

30

tickets. Notwithstanding the prohibition of advertising

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1

contained within this section, an eligible organization may

2

advertise prizes and values thereof in periodic publications

3

which are limited in their circulation to members of the

4

eligible organization.] such advertisements shall contain the

5

date, time, location, whether cash or merchandise prizes will be

6

awarded and the name of the licensed eligible organization and

7

the name of the person who conducts the games of chance.

8

Section 17.  Penalties.

9

(a)  Eligible organizations.--Any eligible organization

10

violating the provisions of this act shall be guilty of a

11

summary offense and, upon conviction thereof, shall be sentenced

12

to pay a fine not exceeding [$1,000] $2,000 and shall for a

13

first offense, forfeit the license to conduct games of chance

14

issued to the eligible organization for the remainder of the

15

licensing period or six months, whichever is longer, for a

16

second offense, forfeit the license issued to the eligible

17

organization for the remainder of the current licensing period

18

and be ineligible to be licensed for the following licensing

19

period, for a third or subsequent offense, forfeit the license

20

issued to the eligible organization and be ineligible for a

21

license renewal for 30 months thereafter.

22

* * *

23

(d)  Rigging.--A person commits a misdemeanor of the first

24

degree if, with intent to prevent a game of chance from being

25

conducted in accordance with the requirements of this act or the

26

rules and usages governing the game of chance, he:

27

(1)  confers or offers or agrees to confer any benefit

28

upon or threatens any injury to a participant or other person

29

associated with the game of chance;

30

(2)  tampers with any person or [games] game of chance;

- 20 -

 


1

or

2

(3)  solicits, accepts or agrees to accept any benefit.

3

(e)  Contingent fees.--Any person who distributes,

4

manufactures or operates a [small] game of chance and who

5

requires, for equipment furnished or to play a game of chance,

6

payment equal to a percentage of the total winnings of any game

7

of chance commits a misdemeanor of the first degree.

8

Section 10.  This act shall apply as follows:

9

(1)  The amendment or addition of section 10(e)(4) and

10

(5), (e.1)(1) and (h) of the act shall apply to an

11

application for a license filed more than 60 days after the

12

effective date of this section.

13

(2)  The amendment or addition of section 10(e)(6) and

14

(e.1)(2) of the act shall apply to an application for a

15

license filed more than one year after the effective date of

16

this section.

17

Section 11.  This act shall take effect as follows:

18

(1)  The following provisions shall take effect

19

immediately:

20

(i)  The amendment or addition of section 10(b), (e), 

21

(e.1) and (h) of the act.

22

(ii)  Section 10 of this act.

23

(iii)  This section.

24

(2)  The remainder of this act shall take effect in 60

25

days.

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