HOUSE AMENDED

 

PRIOR PRINTER'S NOS. 625, 1737, 1856

PRINTER'S NO.  2290

  

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, MENSCH, BREWSTER, WOZNIAK, DINNIMAN AND ARGALL, FEBRUARY 23, 2011

  

  

AS AMENDED ON SECOND CONSIDERATION, HOUSE OF REPRESENTATIVES, JUNE 13, 2012   

  

  

  

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

legislative intent, for definitions, for games of chance

10

permitted, for prize limits, for limits on sales, for

11

distributor licenses, for regulations, for licensing of

12

eligible organizations and for special permits; providing for

13

club licensees; further providing for revocation of licenses,

14

for enforcement, for local option, for advertising and for

15

prohibited persons; providing for civil penalties; further

16

providing for penalties; and making editorial changes.

17

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

<--

18

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

19

eligible organizations to conduct games of chance, for the

20

licensing of persons to distribute games of chance, for the

21

registration of manufacturers of games of chance, and for

22

suspensions and revocations of licenses and permits;

23

requiring records; providing for local referendum by

24

electorate; and prescribing penalties," further providing for

25

legislative intent, for definitions, for games of chance

<--

26

permitted and for prize limits, for limits on sales, for

27

distributor licenses, for registration of manufacturers, for

28

regulations, for licensing of eligible organizations and for

29

special permits; providing for club licensees; further

 


1

providing for revocation of licenses, for local option, for

2

advertising and for penalties; and making editorial changes. 

3

definitions and for games of chance permitted; providing for

<--

4

Major League Baseball, National Hockey League or National

5

Basketball Association 50/50 raffle; AND FURTHER PROVIDING

6

FOR REGULATIONS, FOR LICENSING OF ELIGIBLE ORGANIZATIONS TO

7

CONDUCT GAMES OF CHANCE AND FOR DISTRIBUTION OF PROCEEDS.

8

The General Assembly of the Commonwealth of Pennsylvania

9

hereby enacts as follows:

10

Section 1.  The act of December 19, 1988 (P.L.1262, No.156),

<--

11

known as the Local Option Small Games of Chance Act, is amended

12

by adding a chapter heading to read:

13

CHAPTER 1

14

PRELIMINARY PROVISIONS

15

Section 2.  Section 1 of the act is renumbered to read:

16

Section [1] 101.  Short title.

17

This act shall be known and may be cited as the Local Option

18

Small Games of Chance Act.

19

Section 2.1.  Section 2 of the act is renumbered and amended

20

to read:

21

Section [2] 102.  Legislative intent.

22

The General Assembly hereby declares that the playing of

23

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

24

certain nonprofit associations, for the promotion of charitable

25

or civic purposes, is in the public interest. In some cases the

26

proceeds from games of chance may be utilized to support certain

27

operating expenses of certain organizations.

28

It is hereby declared to be the policy of the General

29

Assembly that all phases of licensing, operation and regulation

30

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

31

laws and regulations with respect thereto as well as all

32

gambling laws should be strictly construed and rigidly enforced.

33

The General Assembly recognizes the possibility of

- 2 -

 


1

association between commercial gambling and organized crime, and

2

wishes to discourage commercialization of [small] games of

3

chance, prevent participation by organized crime and prevent the

4

diversion of funds from the purposes herein authorized.

5

Section 3.  The definitions of "civic and service

6

associations," "club," "daily drawing," "eligible

7

organizations," "fraternal organizations," "games of chance,"

8

"public interest purposes," "raffle" and "weekly drawing" in

9

section 3 of the act, amended December 19, 1990 (P.L.812,

10

No.195) and October 18, 2000 (P.L.602, No.79), are amended and

11

the section is renumbered and amended by adding definitions to

12

read:

13

Section [3] 103.  Definitions.

14

The following words and phrases when used in this act shall

15

have the meanings given to them in this section unless the

16

context clearly indicates otherwise:

17

* * *

18

"Civic and service [associations] association."  Any

19

Statewide or branch, lodge or chapter of a nonprofit national or

20

State organization which is authorized by its written

21

constitution, charter, articles of incorporation or bylaws to

22

engage in a civic or service purpose within this Commonwealth,

23

which shall have existed in this Commonwealth for one year. The

24

term also means a similar local nonprofit organization, not

25

affiliated with a national or State organization, which is

26

recognized by a resolution adopted by the governing body of the

27

municipality in which the organization conducts its principal

28

activities. The term shall include[, but not be limited to,] 

29

Statewide or local bona fide sportsmen's and wildlife

30

associations, federations or clubs, [Statewide or local in

- 3 -

 


1

nature,] volunteer fire companies, volunteer rescue squads and

2

volunteer ambulance associations and [bona fide] senior citizens

3

organizations. In the case of bona fide senior citizens

4

organizations, the licensing authority may accept alternative

5

documentation for proof of purposes when there are no bylaws or

6

articles of incorporation in existence. The term shall also

7

include nonprofit organizations which are established to promote

8

and encourage participation and support for extracurricular

9

activities within the established primary and secondary public,

10

private and parochial school systems. Such organizations must be

11

recognized by a resolution adopted by the appropriate governing

12

body. In the case of organizations associated with the public

13

school system, the governing body shall be the school board of

14

the school district. In the case of private or parochial school

15

organizations, that body shall be either the board of trustees

16

or the Archdiocese.

17

"Club."  [A club, as defined in section 102] An organization

18

that:

19

(1)  is licensed to sell liquor under section 404 of the

20

act of April 12, 1951 (P.L.90, No.21), known as the Liquor

21

Code[, that]; and

22

(2)  qualifies as an exempt organization under section

23

501(c) or 527 of the Internal Revenue Code of [1954 (68A

24

Stat. 3] 1986 (Public Law 99-514, 26 U.S.C. § 501(c) or 527)

25

[and is licensed to sell liquor at retail and has a

26

charitable, religious or civic purpose or is organized to

27

benefit a political party].

28

"Club licensee."  A club that holds a license to conduct

29

small games of chance.

30

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

- 4 -

 


1

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

2

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

3

on the licensed eligible organization's licensed premises during

4

the same operating day. The term includes games of chance 

5

commonly known as "member sign-in lotteries" and "half-and-half

6

lotteries." [Nothing in this act shall be construed to prohibit

7

the carrying over of a jackpot where the winning number has not

8

been entered in the game on a particular operating day.] Daily

9

drawing winners may be determined with the aid of a passive

10

selection device or reference to drawings conducted by the

11

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

12

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

13

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

14

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

15

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

16

shall restrict an eligible organization from conducting more

17

than one drawing per day.

18

* * *

19

"Eligible [organizations."  Includes qualifying nonprofit

20

charitable, religious, fraternal and veterans organizations,

21

clubs and civic and service associations as defined by this act] 

22

organization."  A charitable, religious, fraternal or veterans'

23

organization, club, club licensee or civic and service

24

association. In order to qualify as an eligible organization for

25

purposes of this act, an organization shall have been in

26

existence and fulfilling its purposes for one year prior to the

27

date of application for a license.

28

"Fraternal [organizations] organization."  A nonprofit

29

organization within this Commonwealth which is created and

30

carried on for the mutual benefit of its members, has a limited

- 5 -

 


1

membership and a representative form of government and is a

2

branch, lodge or chapter of a national or State organization.

3

Such organizations shall have been in existence in this

4

Commonwealth and fulfilling their purposes for one year prior to

5

the date of application for a license.

6

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

7

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

8

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

9

assistance of any mechanical or electrical devices or media

10

other than a dispensing machine or passive selection device and

11

further provided that the particular chance taken by any person

12

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

13

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

14

determined solely at the discretion of the purchaser. This

15

definition shall not be construed to authorize any other form of

16

gambling currently prohibited under any provision of Title 18 of

17

the Pennsylvania Consolidated Statutes (relating to crimes and

18

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

19

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

20

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

21

* * *

22

"Licensed distributor."  A distributor of games of chance

23

licensed under section 307.

24

* * *

25

"Prize."  Cash or merchandise awarded for games of chance.

26

"Proceeds."  As follows:

27

(1)  For games of chance required to be purchased from a

28

licensed distributor, the difference between:

29

(i)  the face value, as indicated by the registered

30

manufacturer, collectible by a licensed eligible

- 6 -

 


1

organization from a game of chance; and

2

(ii)  the maximum amount of prizes available, as

3

indicated by the registered manufacturer, by a licensed

4

eligible organization from a game of chance.

5

(2)  For games of chance not required to be purchased

6

from a licensed distributor, the difference between:

7

(i)  the actual gross revenue collected by a licensed

8

eligible organization from a game of chance; and

9

(ii)  the actual amount of prizes paid by a licensed

10

eligible organization from a game of chance.

11

"Public interest [purposes] purpose."  [One or more of the

12

following:

13

(1)  Benefiting persons by enhancing their opportunity

14

for religious or education advancement, by relieving or

15

protecting them from disease, suffering or distress, by

16

contributing to their physical, emotional or social well-

17

being, by assisting them in establishing themselves in life

18

as worthy and useful citizens or by increasing their

19

comprehension of and devotion to the principles upon which

20

this nation was founded.

21

(2)  Initiating, performing or fostering worthy public

22

works or enabling or furthering the erection or maintenance

23

of public structures.

24

(3)  Lessening the burdens borne by government or

25

voluntarily supporting, augmenting or supplementing services

26

which government would normally render to the people.

27

(4)  Improving, expanding, maintaining or repairing real

28

property owned or leased by an eligible organization and used

29

for purposes specified in paragraphs (1), (2) and (3).

30

The term does not include the erection or acquisition of any

- 7 -

 


1

real property, unless the property will be used exclusively for

2

one or more of the purposes specified in this definition.] A

3

nonprofit benevolent, religious, educational, philanthropic,

4

humane, scientific, patriotic, social welfare, social advocacy,

5

public health, public safety, environmental or civic objective.

6

* * *

7

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

8

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

9

random drawing of corresponding ticket stubs to take place at a

10

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

11

of chance shall include lotteries but not daily drawings. Raffle

12

winners may be determined by reference to drawings conducted by

13

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

14

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

15

* * *

16

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

17

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

18

prize with the winner determined by a random drawing to take

19

place on the licensed eligible organization's licensed premises

20

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

21

construed to prohibit the carrying over of a jackpot where the

22

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

23

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

24

a passive selection device or reference to drawings conducted by

25

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

26

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

27

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

28

Section 4.  The act is amended by adding a chapter heading to

29

read:

30

CHAPTER 3

- 8 -

 


1

GAMES OF CHANCE

2

Section 5.  Section 4 of the act, amended December 19, 1990

3

(P.L.812, No.195), is renumbered and amended to read:

4

Section [4] 301.  Games of chance permitted.

5

Every eligible organization to which a license has been

6

issued under the provisions of this [act] chapter may conduct

7

games of chance for the purpose of raising funds for public

8

interest purposes. [All] Except as provided in Chapter 5, all 

9

proceeds of [games of chance] a licensed eligible organization 

10

shall be used exclusively for public interest purposes or for

11

the purchase of games of chance as permitted by this act.

12

Section 6.  Section 5 of the act, amended December 19, 1990

13

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

14

renumbered and amended to read:

15

Section [5] 302.  Prize limits.

16

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

17

subsections (c) and (d), the maximum [cash value] prize which

18

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

19

(b)  [Weekly] Aggregate prize limit.--No more than [$5,000] 

20

$25,000 in [cash or merchandise] prizes shall be awarded from

21

games of chance by [any] a licensed eligible organization in any

22

seven-day period.

23

(c)  [Limit on raffles] Raffles prize limit.--[No more than

24

$5,000 in cash or merchandise shall] Subject to the limitations

25

under subsection (b), up to $10,000 in prizes may be awarded in

26

raffles in any calendar month.

27

(c.1)  Total limit.--All prizes awarded under this section

28

and section 301 shall be subject to the aggregate prize limits

29

under subsection (b).

30

(d)  Exception for raffles.--[An] Notwithstanding subsection

- 9 -

 


1

(b) or (c), a licensed eligible organization may conduct a

2

raffle and award a prize or prizes valued in excess of [$500] 

3

$1,000 each only under the following conditions:

4

(1)  The licensing authority has issued a special permit

5

for the raffle under section [11] 308.

6

(2)  [Eligible organizations] A licensed eligible

7

organization shall be eligible to receive no more than [two] 

8

eight special permits in any licensed [year] term except that

9

a volunteer fire, ambulance [and] or rescue [organizations] 

10

organization that is not a club licensee shall be eligible to

11

receive [no more than three] ten special permits in any

12

licensed [year] term.

13

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

14

permit issued under section 308.

15

(4)  [The] Except as provided under paragraph (5), the 

16

total [cash value] of all prizes awarded under this

17

subsection shall be no more than [$100,000 per calendar

18

year.] $200,000 per licensed term.

19

(5)  A volunteer fire, ambulance or rescue organization

20

may, in addition to the total under paragraph (4), award up

21

to $50,000 from raffles which shall not be subject to the

22

aggregate limit under subsection (b).

23

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

24

governed by the prize limitations contained in subsections (a)

25

and (b). An eligible organization shall not conduct daily

26

drawings during a period when a weekly drawing is taking place.]

27

(f)  [Exception] Daily drawing carryover.--The prize

28

limitation contained in subsections (a) and (b) may be exceeded

29

by a daily drawing under the following circumstances: a daily

30

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

- 10 -

 


1

[$500] $1,000 if such prize is the result of a carryover of a

2

drawing [or drawings] which resulted from the winning number in

3

such drawing [or drawings] not being among the eligible entrants

4

in such drawings. Nothing contained herein shall authorize the

5

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

6

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

7

drawing on an operating day during which chances were sold for a

8

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

9

in excess of $1 or for which more than one chance was sold to an

10

eligible participant.

11

(g)  [Daily drawing and weekly drawing] Additional 

12

exception.--When a daily drawing or weekly drawing is set up or

13

conducted in such a manner as to pay out or award 100% of the

14

gross revenues generated from such drawing, the [limitations] 

15

limitation contained in subsection (b) shall not apply.

16

(h)  [Limit on weekly drawings] Weekly drawing carryover

17

exception.--Weekly drawings shall be governed by the prize

18

[limitations] limitation contained in subsection (b). [The prize

19

limitation contained in subsection (b) may be exceeded by a

20

weekly drawing under the following circumstances: a weekly

21

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

22

$5,000 if such prize is the result of a carryover of a drawing

23

or drawings which resulted from the winning number or numbers in

24

such drawing or drawings not being among the eligible entrants

25

in such drawings.] The portion of a prize awarded in a weekly

26

drawing that results from the carryover of a weekly drawing in

27

which the number or numbers were not among the eligible entrants

28

in the drawing shall not be included when applying the

29

limitation under subsection (b). Nothing contained in this [act] 

30

chapter shall authorize the prize [limitations as contained in] 

- 11 -

 


1

limitation under subsection (b) to be exceeded as a result of a

2

failure to conduct a drawing for a week during which chances

3

were sold for a weekly drawing or for a weekly drawing for which

4

chances were sold in excess of $1. [An eligible organization

5

shall not conduct weekly drawings during a period when a daily

6

drawing is taking place.]

7

Section 7.  Sections 6 and 7 of the act, amended December 19,

8

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

9

Section [6] 303.  Sales limited.

10

(a)  General rule.--No person shall sell, offer for sale or

11

furnish games of chance for use within this Commonwealth except

12

to an eligible organization or [distributor] licensed

13

distributor under this [act] chapter.

14

(b)  Organizations.--No game of chance, other than a raffle

15

under section 302(d), sold, offered for sale or furnished to a

16

licensed eligible organization for use within this Commonwealth

17

shall contain, permit, depict or designate a prize having a

18

[cash value] prize limit in excess of [$500] $1,000.

19

Section [7] 304.  Distributor licenses.

20

(a)  License required.--No person shall sell, offer for sale

21

or furnish games of chance to eligible organizations licensed

22

under this [act] chapter unless such person shall have obtained

23

a distributor license as provided in this section.

24

(b)  Application.--An applicant for the grant or renewal of a

25

distributor license issued pursuant to this section shall

26

provide to the department, upon the form prescribed, all of the

27

following:

28

(1)  The applicant's State sales tax number.

29

(2)  The applicant's State corporate tax number.

30

(3)  The applicant's State employer withholding tax

- 12 -

 


1

number.

2

(4)  The applicant's unemployment compensation account

3

number.

4

(5)  A statement that:

5

(i)  all State tax reports have been filed and all

6

State taxes paid;

7

(ii)  all State taxes are subject to a timely

8

administrative or judicial appeal; or

9

(iii)  all State taxes are subject to a duly approved

10

deferred payment plan.

11

(6)  The names and business addresses of all owners,

12

officers, directors, partners and sales personnel.

13

(c)  Waiver of confidentiality.--An applicant for the grant

14

or renewal of any license issued pursuant to this section shall,

15

by the filing of an application insofar as it relates to the

16

department, waive any confidentiality with respect to State tax

17

information in the possession of the department, the Office of

18

Attorney General or the Department of Labor and Industry

19

regarding that applicant, regardless of the source of that

20

information, and shall consent to the providing of that

21

information to the department by the Office of Attorney General

22

or the Department of Labor and Industry.

23

(d)  Review of tax status.--Upon receipt of any application

24

for the grant or renewal of any license issued pursuant to this

25

section, the department shall review the State tax status of the

26

applicant. The department shall request State tax information

27

regarding the applicant from the Office of Attorney General or

28

the Department of Labor and Industry and that information shall

29

be provided.

30

(e)  Limitation on approval.--The department shall not

- 13 -

 


1

approve any application for the grant or renewal of any license

2

issued pursuant to this section where the applicant has failed

3

to:

4

(1)  provide any of the information required by

5

subsection (b);

6

(2)  file required State tax reports; or

7

(3)  pay any State taxes not subject to a timely

8

administrative or judicial appeal or subject to a duly

9

authorized deferred payment plan.

10

(f)  Records.--The licensee shall keep such records, reports

11

and books as the department shall prescribe. Applicants shall be

12

required to make such records, reports and books available as

13

required by the department pursuant to regulation.

14

(g)  Ineligibility.--The department shall not issue or renew

15

a distributor license for the sale of games of chance to a

16

person, including any corporation, firm or partnership which has

17

as an officer, director or other person in a supervisory or

18

management position, or employee eligible to make sales on

19

behalf of the distributor, who:

20

(1)  has been convicted of a felony in a state or Federal

21

court within the past five years; or

22

(2)  has been convicted within ten years of the date of

23

application in a state or Federal court of a violation of the

24

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

25

Law, or of this act or of a gambling-related offense under

26

Title 18 of the Pennsylvania Consolidated Statutes (relating

27

to crimes and offenses) or other comparable State or Federal

28

law.

29

(h)  License and renewal fees.--The fee for a distributor

30

license shall be $1,000. Licenses shall be renewable on an

- 14 -

 


1

annual basis.

2

(i)  Exception.--This section shall not apply to the

3

manufacture or distribution of raffle tickets.

4

Section 8.  Section 8 of the act is renumbered to read:

5

Section [8] 305.  Registration of manufacturers.

6

(a)  Registration required.--No manufacturer of games of

7

chance shall sell any games of chance to any person unless the

8

manufacturer has registered with the department and has been

9

issued a certificate of registration.

10

(b)  Annual certificate; fee.--A certificate under this

11

section shall be valid for one year. The annual fee for

12

registration shall be $2,000.

13

(c)  Prohibited sales.--A manufacturer shall not sell games

14

of chance to any person not licensed as a distributor unless the

15

manufacturer is also a licensed distributor.

16

(d)  Exception.--This section shall not apply to the

17

manufacture or distribution of raffle tickets.

18

Section 9.  Section 9 of the act, amended December 19, 1990

19

(P.L.812, No.195), is renumbered and amended to read:

20

Section [9] 306.  Regulations of department.

21

(a)  Authorization.--The department shall promulgate

22

regulations to:

23

(1)  Impose minimum standards and restrictions applicable

24

to games of chance manufactured for sale in this

25

Commonwealth, which may include standards and restrictions

26

which specify the maximum number of chances available to be

27

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

28

standards and restrictions as the department deems necessary

29

for the purposes of this [act] chapter. The department shall

30

consider standards adopted by the National Association of

- 15 -

 


1

Gambling Regulatory Agencies and other standards commonly

2

accepted in the industry.

3

(2)  Establish procedures by which manufacturers may

4

register and distributors of games of chance may apply for

5

licensure on forms which the department shall provide.

6

Procedures shall include a requirement that manufacturer and

7

distributor applicants provide criminal history record

8

information obtained from the Pennsylvania State Police under

9

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

10

each officer and manager of the manufacturer's or

11

distributor's organization and for any other individual

12

specified by the department. As used in this paragraph, the

13

term "criminal history record information" has the meaning

14

given in 18 Pa.C.S. § 9102 (relating to definitions).

15

(3)  Provide for the suspension or revocation of

16

distribution licenses or manufacturer certificates for

17

violations of this act or regulations of the department.

18

(4)  Carry out other provisions of this act.

19

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

20

shall not be construed to authorize the department to promulgate

21

regulations providing for recordkeeping requirements for

22

licensed eligible organizations which require unreasonable or

23

unnecessary information or a repetitious listing of information.

24

The department shall strive to keep such recordkeeping

25

requirements from being an undue hardship or burden on licensed 

26

eligible organizations. Under no circumstances shall the

27

department require the retention of records for a period in

28

excess of two years.

29

(c)  Reporting requirements.--Each eligible organization

30

shall file an annual report to the department including:

- 16 -

 


1

(1)  Prizes awarded as required under section 335 of the

2

act of March 4, 1971 (P.L.6, No.2), known as the Tax Reform

3

Code of 1971.

4

(2)  Amounts expended for public interest purposes.

5

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

6

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

7

renumbered and amended to read:

8

Section [10] 307.  Licensing of eligible organizations to

9

conduct games of chance.

10

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

11

conduct or operate any games of chance unless such eligible

12

organization has obtained and maintains a valid license or

13

limited occasion license issued pursuant to this section.

14

[Auxiliary groups within] An auxiliary group of 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. An auxiliary group is not eligible to obtain a

20

license or a limited occasion license. No additional licensing

21

fee shall be charged for an auxiliary group's eligibility under

22

this [act] chapter. Auxiliary groups shall not include branches,

23

lodges or chapters of a Statewide organization.

24

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

25

license, upon application, within 30 days any eligible

26

organization meeting the requirements for licensure contained in

27

this [act] chapter to conduct and operate games of chance at

28

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

29

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

30

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

- 17 -

 


1

$200, except for limited occasion licenses which shall be [$10] 

2

$20. Licenses shall be renewable [annually] on a biennial basis 

3

upon the anniversary of the date of issue. The license fee shall

4

be used by the licensing authority to administer this act.

5

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

6

(1)  Every licensed eligible organization, except a

7

limited occasion licensee, may conduct small games of chance

8

only at a licensed premises. The licensed premises shall be

9

indicated on the eligible organization's license application.

10

Only one license shall be issued per licensed premises.

11

Except as provided under paragraph (4), a licensed eligible

12

organization may not share a licensed premises with another

13

licensed eligible organization; and no licensed eligible

14

organization may permit its premises to be used for small

15

games of chance by another licensed eligible organization.

16

(2)  Where there exists a location or premises which is

17

the normal business or operating site of the eligible

18

organization and the location or premises is owned or leased

19

by that eligible organization to conduct its normal business,

20

that site shall be the eligible organization's licensed

21

premises [for small games of chance conducted by the eligible

22

organization]. If that location consists of more than one

23

building [and the eligible organization wishes to conduct its

24

games in a different building at that location from the one

25

that is listed on its application and license, the eligible

26

organization must notify, in writing, the district attorney

27

and the licensing authority of the change in building site

28

and the dates and times that will be affected], the eligible

29

organization shall choose the building that will be the

30

licensed premises.

- 18 -

 


1

(3)  When an eligible organization does not own or lease

2

a specific location to conduct its normal business, [that] 

3

the eligible organization [may use another eligible

4

organization's premises to conduct its games or] may make

5

[such other] arrangements that are consistent with this act

6

to establish a licensed premises, including[, but not limited

7

to,] leasing a premise under a written agreement for a rental

8

[which is not]; however, the rental may not be determined by

9

either the amount of receipts realized from the [playing] 

10

conduct of games of chance [nor] or the number of people

11

attending [except that an]. An eligible organization may

12

lease a facility for a banquet [where a per head charge is

13

applied] in connection with the serving of a meal based on a

14

per-head charge. [When such eligible organization changes the

15

site of its games from that which is listed on its

16

application and license, the eligible organization must

17

notify, in writing, the district attorney and licensing

18

authority of the change in their games' site and dates and

19

times that will be affected.]

20

(4)  An eligible organization that has obtained a limited

21

occasion license under subsection (b.3) may use another

22

eligible organization's licensed premises to conduct its

23

games of chance. When a licensed eligible organization is

24

permitting a limited occasion licensee to use its licensed

25

premises for purposes of games of chance, it shall cease the

26

operation of its own games of chance during the period that

27

the limited occasion licensee is conducting its games on the

28

premises.

29

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

30

other provisions of this section, [an] all of the following

- 19 -

 


1

apply:

2

(1)  A licensed eligible organization may conduct [small] 

3

games of chance at a location off its premises when [such

4

games] the games of chance are part of an annual carnival,

5

fair, picnic or banquet held or participated in by that

6

licensed eligible organization on a historical basis. The

7

licensed eligible organization must notify, in writing, the

8

district attorney and licensing authority of the location,

9

date and times of [such events] the event where it will be

10

conducting [small] games of chance.

11

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

12

in a municipality which has adopted the provisions of this

13

act by an affirmative vote in a municipal referendum. A

14

licensed eligible organization which plans to sell raffle

15

tickets in a municipality located in a county other than the

16

county in which the eligible organization is licensed shall

17

notify that county's district attorney and licensing

18

authority as to the location and the dates that the licensed

19

eligible organization plans to sell raffle tickets.

20

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

21

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

22

specific location to conduct their normal business may apply for

23

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

24

not more than three occasions covering a total of seven days

25

during a licensed year. A limited occasion license entitles an 

26

eligible [organizations holding such a license] organization to

27

conduct no more than two raffles during a licensed year where

28

prizes may not exceed the established limits for regular monthly

29

raffles. Holders of a limited occasion [licenses] license may

30

not apply or be granted any other license or special permit

- 20 -

 


1

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

2

under this act shall apply or be granted a limited occasion

3

license.

4

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

5

for a person, corporation, association, partnership or other

6

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

7

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

8

[small] games of chance. It shall also be unlawful for any

9

eligible organization to rent or lease under any terms a

10

[facility or] building or facility which is used exclusively for

11

the [conducting] conduct of [small] games of chance.

12

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

13

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

14

chance will be conducted.

15

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

16

[comply with the following restrictions and rules governing the

17

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

18

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

19

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

20

(2)  [No eligible organization shall permit] Permitting 

21

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

22

State court within the past five years or has been convicted

23

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

24

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

25

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

26

or participate in the operation of games of chance.

27

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

28

compensation to any person for conducting any games of

29

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

30

officers, directors, bar personnel and bona fide members of

- 21 -

 


1

the eligible organization.

2

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

3

chance on any premises other than on the licensed premises or

4

as otherwise provided by this [act] chapter.

5

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

6

Leasing the licensed premises under either an oral or a

7

written agreement for a rental which is determined by either

8

the amount of receipts realized from the playing of games of

9

chance or the number of people attending, except that an

10

eligible organization may lease a facility for a banquet

11

where a per head charge is applied in connection with the

12

serving of a meal. An eligible organization shall not lease

13

such premises from any person who has been convicted of a

14

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

15

years.

16

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

17

raffles, daily drawings and weekly drawings, [shall be

18

purchased only from manufacturers and distributors] from any

19

person other than a registered manufacturer or licensed

20

distributor approved by the department.

21

[(7)  No licensed eligible organization shall permit its

22

premises to be used for small games of chance by another

23

licensed eligible organization at the same time that it is

24

conducting small games of chance on the premises. When a

25

licensed eligible organization is permitting another licensed

26

eligible organization to use its premises for purposes of

27

small games of chance, it must cease the operation of its own

28

small games of chance during the period that the other

29

licensed eligible organization is conducting its games on the

30

premises.

- 22 -

 


1

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

2

in any municipality in this Commonwealth which has adopted

3

the provisions of this act by an affirmative vote in a

4

municipal referendum. A licensed eligible organization which

5

plans to sell raffle tickets in a municipality located in a

6

county other than the county in which the eligible

7

organization is licensed must notify that county's district

8

attorney and licensing authority as to the location and the

9

dates that the eligible organization plans to sell raffle

10

tickets.]

11

(d.1)  Bank account and records.--The licensed eligible

12

organization shall keep a bank account to hold the proceeds of

13

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

14

belonging to the licensed eligible organization. Account records

15

shall show all expenditures and income and shall be retained by

16

the licensed eligible organization for at least two years.

17

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

18

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

19

to be prescribed by the Secretary of Revenue. For a club

20

license, the application shall include the most recent annual

21

report filed by the club licensee under Chapter 5. The form

22

shall contain an affidavit to be affirmed by the executive

23

officer or secretary of the eligible organization stating that:

24

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

25

the eligible organization to operate or play games of chance.

26

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

27

played has adequate means of ingress and egress and adequate

28

sanitary facilities available in the area.

29

(3)  The eligible organization is not leasing such

30

premises from the owner thereof under an oral agreement, nor

- 23 -

 


1

is it leasing such premises from the owner thereof under a

2

written agreement at a rental which is determined by the

3

amount of receipts realized from the playing of games of

4

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

5

eligible organization may lease a facility for a banquet

6

where a per head charge is applied in connection with the

7

serving of a meal.

8

(e.1)  Proceedings.--Proceedings before the licensing

9

authority are subject to 2 Pa.C.S. Chs. 5 Subch. B (relating to

10

practice and procedure of local agencies) and 7 Subch. B

11

(relating to judicial review of local agency action).

12

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

13

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

14

Department of Revenue.

15

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

16

include with any license or renewal license issued to an

17

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

18

municipalities within the licensing county which have approved

19

the referendum question on small games of chance.

20

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

21

include the results of a criminal history record information

22

check obtained from the Pennsylvania State Police, as defined in

23

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

24

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

25

executive officer and secretary of the eligible organization

26

making the application for a license or any other person

27

required by the department.

28

Section 11.  Section 11 of the act, amended December 19, 1990

29

(P.L.812, No.195), is renumbered and amended to read:

30

Section [11] 308.  Special permits.

- 24 -

 


1

(a)  Issuance and fee.--The licensing authority shall issue a

2

special permit for each raffle in which the [licensee] licensed

3

eligible organization proposes to award individual prizes

4

[having a cash value] in excess of [$500] $1,000. The licensing

5

authority may establish and collect a fee not to exceed $25 for

6

the issuance of special permits under this section.

7

(b)  Permit application.--Each special permit application

8

shall specify the location where the actual drawing will be

9

held, the number of chances to be sold, the price per chance and

10

the [cash value of the prize or prizes] prize to be awarded.

11

Section 12.  The act is amended by adding a chapter to read:

12

CHAPTER 5

13

CLUB LICENSEES

14

Section 501.  Club licensee.

15

(a)  Report.--

16

(1)  Beginning in 2013, the club licensee shall submit

17

semi-annual reports to the department for the preceding six-

18

month period on a form and in a manner prescribed by the

19

department.

20

(2)  The report must be filed under oath or affirmation

21

of an authorized officer of the club licensee.

22

(3)  The report shall include all of the following

23

information:

24

(i)  The proceeds received by the club licensee from

25

each game of chance conducted, itemized by week.

26

(ii)  The amount of prizes paid from all games of

27

chance, itemized by week.

28

(iii)  The amount of proceeds for all games of chance

29

not purchased from a licensed distributor operated in the

30

prior calendar year.

- 25 -

 


1

(iv)  Other costs incurred related to the conduct of

2

games of chance.

3

(v)  The verification of amounts distributed for

4

public interest purposes itemized under section

5

502(a)(1), itemized by the recipient.

6

(vi)  An itemized list of expenditures made or

7

amounts retained and expenditures under section

8

502(a)(3).

9

(vii)  The address and the county in which the club

10

licensee is located.

11

(viii)  Other information or documentation required

12

by the department.

13

(b)  Distribution.--The department shall provide a copy of

14

the report to the Bureau of Liquor Control Enforcement.

15

(c)  Posting.--The reports under subsection (a) shall be

16

published on the department's Internet website.

17

Section 502.  Distribution of proceeds.

18

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

19

received by a club licensee shall be distributed as follows:

20

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

21

organizations other than the club licensee for public

22

interest purposes in the calendar year in which the proceeds

23

were obtained.

24

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

25

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

26

the following expenses relating to the real property of the

27

club licensee:

28

(i)  Real property taxes.

29

(ii)  Utility and fuel costs.

30

(iii)  Heating and air conditioning equipment or

- 26 -

 


1

repair costs.

2

(iv)  Water and sewer costs.

3

(v)  Property or liability insurance costs.

4

(vi)  Mortgage payments.

5

(vii)  Interior and exterior repair costs, including

6

repair to parking lots.

7

(viii)  New facility construction costs.

8

(ix)  Entertainment equipment, including television,

9

video and electronic games.

10

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

11

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

12

calendar year unless the club licensee notifies the department

13

that funds are being retained for a substantial purchase or

14

project. Notification shall include a description of the

15

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

16

purchase or the project.

17

(b)  Prohibition.--Proceeds shall not be used for wages,

18

alcohol or food purchases or for the payment of any fine levied

19

against the club licensee.

20

Section 503.  Raffle tickets.

21

A club licensee shall purchase all raffle tickets from a

22

licensed distributor.

23

Section 13.  The act is amended by adding a chapter heading

24

to read:

25

CHAPTER 7

26

ENFORCEMENT

27

Section 14.  Section 12 of the act, amended December 19, 1990

28

(P.L.812, No.195), is renumbered and amended to read:

29

Section [12] 701.  Revocation of licenses.

30

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

- 27 -

 


1

refuse to renew the license of any eligible organization

2

whenever the district attorney finds upon complaint and

3

investigation that] following shall be grounds for suspension,

4

revocation or nonrenewal of a license:

5

(1)  Any of the funds derived from the operation of games

6

of chance by an eligible organization are used for any

7

purpose other than for:

8

(i)  public interest purposes [or for];

9

(ii)  the purchase of games of chance [as]; or

10

(iii)  a purpose permitted by [this act] Chapter 5.

11

(1.1)  Any of the funds derived from the operation of

12

games of chance by a club licensee are used in a manner that

13

does not comply with section 502.

14

(2)  Any person under 18 years of age is operating or

15

playing games of chance [as defined in this act].

16

(3)  The eligible organization has permitted any person

17

who has been convicted of a felony in a Federal or State

18

court within the past five years or has been convicted in a

19

Federal or State court within the past ten years of a

20

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

21

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

22

supervise or participate in the operation of games of chance.

23

(4)  The facility in which the games of chance are played

24

does not have adequate means of ingress and egress and does

25

not have adequate sanitary facilities available in the area.

26

(5)  Any person or persons other than a manager, officer,

27

director, bar personnel or a bona fide member of an eligible

28

organization have been involved in managing, setting up,

29

operating or running games of chance.

30

(6)  Any person has received compensation for conducting

- 28 -

 


1

games of chance.

2

(7)  Any prize has been awarded in excess of the limits

3

permitted under this act.

4

(8)  The eligible organization has violated any condition

5

of a special permit issued pursuant to section [11] 308.

6

(9)  The eligible organization conducts the games of

7

chance under a lease which calls for:

8

(i)  leasing such premises from the owner thereof

9

under an oral agreement; or

10

(ii)  leasing such premises from the owner thereof

11

under a written agreement at a rental which is determined

12

by the amount of receipts realized from the playing of

13

games of chance.

14

(10)  False or erroneous information was provided in the

15

original application or in any information provided to the

16

licensing authority or the department in any report.

17

(11)  An eligible organization has been convicted of a

18

violation of this act as evidenced by a certified record of

19

the conviction.

20

(12)  The eligible organization has permitted another

21

eligible organization to conduct [small] games of chance on

22

its licensed premises without suspending its own operation of

23

[small] games of chance during the period that the other

24

licensed eligible organization is conducting its games on the

25

premises.

26

(13)  A club licensee has failed to file an accurate

27

report under section 501(a).

28

(14)  A club licensee has failed to comply with section

29

502.

30

(b)  Production of records.--The district attorney may

- 29 -

 


1

require licensees to produce their books, accounts and records

2

relating to the conduct of games of chance in order to determine

3

[whether a license should be revoked or renewal thereof denied] 

4

if a violation of this act has occurred. Licensees shall also be

5

required, upon request, to [produce] provide their license,

6

books, accounts and records relating to the conduct of games of

7

chance to [other] the licensing authority, the Bureau of Liquor

8

Control Enforcement or to a law enforcement [officials upon

9

proper request.] agency or official. A club licensee shall

10

retain records for a period of five years.

11

Section 15.  Section 13 of the act is renumbered and amended

12

to read:

13

Section [13] 702.  Enforcement.

14

[(a)  District attorney.--The district attorney shall

15

investigate alleged violations of this act. If the district

16

attorney finds probable cause to believe that a violation has

17

occurred, he may file a complaint against the alleged violator

18

in the court of common pleas of said county, except in counties

19

of the first class where the complaint may be filed in the

20

municipal court. In addition, the district attorney shall

21

prosecute said complaint in the manner provided by law.

22

(b)  Other law enforcement officials.--Nothing in this act

23

shall be interpreted to restrict the power of a State, county or

24

local law enforcement officials to conduct investigations and

25

enforce the provisions of this act.]

26

(a)  Licensing authority.--The licensing authority may

27

enforce the provisions of this act and may impose the penalties

28

under subsection (d).

29

(b)  Bureau of Liquor Control Enforcement.--If the licensee

30

is a club licensee, the Bureau of Liquor Control Enforcement may

- 30 -

 


1

enforce the provisions of this act. An administrative law judge

2

under section 212 of the act of April 12, 1951 (P.L.90, No.21),

3

known as the Liquor Code, may impose the penalties under

4

subsection (d) following the issuance of a citation by the

5

bureau.

6

(c)  Random audits.--The Bureau of Liquor Control Enforcement

7

shall conduct annual random audits of 5% of all club licensees.

8

(d)  Powers and duties.--The licensing authority, or, in the

9

case of a club licensee, the Bureau of Liquor Control

10

Enforcement may impose the following penalties:

11

(1)  A civil penalty.

12

(2)  Suspension or revocation of the license.

13

(e)  District attorney.--The district attorney of the county

14

that issued the license shall investigate alleged violations of

15

this act. If the district attorney finds probable cause to

16

believe that a criminal violation has occurred, the district

17

attorney may file criminal charges and prosecute the complaint

18

against the alleged violator in the court of common pleas of the

19

county, except in counties of the first class where the

20

complaint may be filed in the municipal court.

21

(f)  Law enforcement officials.--Nothing in this act may

22

restrict or limit the power of a State, county or local law

23

enforcement official to conduct investigations and file criminal

24

charges under this act.

25

(g)  Liquor Code.--A violation of this act shall not

26

constitute a violation of the Liquor Code.

27

Section 16.  Section 14 of the act, amended July 11, 1990

28

(P.L.449, No.108) and December 19, 1990 (P.L.812, No.195), is

29

renumbered and amended to read:

30

Section [14] 703.  Local option.

- 31 -

 


1

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

2

may be held on the date of the primary election immediately

3

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

4

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

5

issuance of licenses within the limits of such municipality

6

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

7

been held at the primary election preceding a municipal election

8

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

9

of this act at the primary election occurring the fourth year

10

after such prior election. Whenever electors equal to at least

11

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

12

at the last preceding general election shall file a petition

13

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

14

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

15

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

16

the resolution is filed with the board of elections of the

17

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

18

the county board of elections shall cause a question to be

19

placed on the ballot or on the voting machine board and

20

submitted at the primary election immediately preceding the

21

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

22

Do you favor the issuance of licenses

23

to conduct small games of chance in the

24

                 of                  ?

25

(b)  Vote.--If a majority of the electors voting on the

26

question vote "yes," then licenses shall be issued by the

27

licensing authority in such municipality, but if a majority of

28

the electors voting on any such question vote "no," then the

29

licensing authority shall have no power to issue or to renew,

30

upon their expiration, any licenses in such municipality, unless

- 32 -

 


1

and until, at a later election, a majority of the voting

2

electors vote "yes" on such question.

3

(c)  Voting proceedings.--Proceedings under this section

4

shall be in accordance with the provisions of the act of June 3,

5

1937 (P.L.1333, No.320), known as the Pennsylvania Election

6

Code.

7

(d)  Applicability.--This act applies only to those eligible

8

organizations located in municipalities which have adopted the

9

provisions of this act by an affirmative vote in a municipal

10

referendum in accordance with the provisions of this section.

11

(e)  Withdrawal of approval.--The referendum procedure

12

contained in this section shall also be available to withdraw

13

the approval of the issuance of such licenses within such

14

municipality which was granted through a prior referendum.

15

(f)  Special exception.--Notwithstanding any other provision

16

of this act to the contrary, in any municipality except a city

17

of the first class where an election was held pursuant to this

18

section on May 16, 1989, and a majority of the electors voted

19

"NO" on the question, the municipality shall be able to resubmit

20

the question, in accordance with the procedures set forth in

21

this section, at the general election immediately following [the

22

effective date of this amendatory act] July 11, 1990.

23

Section 17.  Section 15 of the act, amended December 19, 1990

24

(P.L.812, No.195), is renumbered to read:

25

Section [15] 704.  Advertising.

26

It shall be unlawful for any eligible organization or person

27

to advertise the prizes or their dollar value to be awarded in

28

games of chance, provided that prizes may be identified on

29

raffle tickets. Notwithstanding the prohibition of advertising

30

contained within this section, an eligible organization may

- 33 -

 


1

advertise prizes and values thereof in periodic publications

2

which are limited in their circulation to members of the

3

eligible organization.

4

Section 18.  Section 16 of the act is renumbered and amended

5

to read:

6

Section [16] 705.  Certain persons prohibited.

7

No licensed distributor nor any person who has been convicted

8

of a felony or of a violation of the act of July 10, 1981

9

(P.L.214, No.67), known as the Bingo Law, or of this act or of

10

any comparable State or Federal law shall have a pecuniary

11

interest in the operation [or proceeds of games of chance] or in

12

proceeds.

13

Section 19.  The act is amended by adding a section to read:

14

Section 706.  Civil penalties.

15

(a)  Penalty.--An eligible organization, other than a club

16

licensee, that violates the provisions of this act shall be

17

subject to the following civil penalties:

18

(1)  For an initial violation, up to $500.

19

(2)  For a second violation, up to $1,000.

20

(3)  For a third or subsequent violation, up to $1,500.

21

(b)  Club licensee.--A club licensee that violates the

22

provisions of this act shall be subject to the following civil

23

penalties:

24

(1)  For an initial violation, up to $1,000.

25

(2)  For a second violation, up to $2,000.

26

(3)  For a third or subsequent violation, up to $3,000.

27

(c)  Records.--The intentional or willful failure of a club

28

licensee to provide accurate records shall result in a license

29

suspension of a minimum of six months.

30

Section 20.  Section 17 of the act, amended December 19, 1990

- 34 -

 


1

(P.L.812, No.195), is renumbered and amended to read:

2

Section [17] 707.  [Penalties] Criminal penalties.

3

(a)  Eligible organizations and club licensees.--Any eligible

4

organization violating the provisions of this act shall be

5

guilty of a summary offense and, upon conviction thereof, shall

6

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

7

a first offense[,] and $1,500 for a subsequent offense. In

8

addition:

9

(1)  For a first offense, the eligible organization shall 

10

forfeit the license to conduct games of chance issued to the

11

eligible organization for [the remainder of the licensing

12

period or six months, whichever is longer, for] a period of

13

not more than 30 days.

14

(2)  For a second offense, the eligible organization

15

shall forfeit [the] its license [issued to the eligible

16

organization] for [the remainder of the current licensing

17

period and be ineligible to be licensed for the following

18

licensing period, for] a period of not less than 30 days nor

19

more than 180 days.

20

(3)  For a third or subsequent offense[,] within three

21

years of the first offense, the eligible organization shall 

22

forfeit [the] its license [issued to the eligible

23

organization] and be ineligible for a license renewal for 30

24

months thereafter.

25

(b)  Individuals.--Any person who conducts or assists in the

26

conducting of games of chance in violation of the provisions of

27

this act is guilty of a summary offense for a first violation. A

28

second violation of this act shall be punishable as a

29

misdemeanor of the third degree. A third or subsequent violation

30

shall be punishable as a misdemeanor of the first degree.

- 35 -

 


1

(c)  Distributors and manufacturers.--Any person who

2

distributes games of chance without a license or in violation of

3

any provision of this act or applicable regulations, and any

4

manufacturer of games of chance who delivers games of chance for

5

sale or distribution in this Commonwealth who fails to register

6

and obtain a permit therefor is guilty of a misdemeanor of the

7

first degree, provided that no license or permit shall be

8

required for the manufacture or distribution of raffle tickets.

9

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

10

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

11

conducted in accordance with the requirements of this act or the

12

rules and usages governing the game of chance, he:

13

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

14

upon or threatens any injury to a participant or other person

15

associated with the game of chance;

16

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

17

or

18

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

19

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

20

manufactures or operates a small game of chance and who

21

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

22

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

23

of chance commits a misdemeanor of the first degree.

24

Section 21.  The act is amended by adding a chapter heading

25

to read:

26

CHAPTER 31

27

MISCELLANEOUS PROVISIONS

28

Section 22.  Section 18 of the act is renumbered to read:

29

Section [18] 3101.  Effective date.

30

This act shall take effect in 60 days.

- 36 -

 


1

Section 23.  This act shall take effect in 30 days.

2

Section 1.  The act of December 19, 1988 (P.L.1262, No.156),

<--

3

known as the Local Option Small Games of Chance Act, is amended

4

by adding a chapter heading to read:

5

CHAPTER 1

6

PRELIMINARY PROVISIONS

7

Section 2.  Section 1 of the act is renumbered to read:

8

Section [1] 101.  Short title.

9

This act shall be known and may be cited as the Local Option

10

Small Games of Chance Act.

11

Section 2.1.  Section 2 of the act is renumbered and amended

12

to read:

13

Section [2] 102.  Legislative intent.

14

[The General Assembly hereby declares that the playing of

15

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

16

certain nonprofit associations, for the promotion of charitable

17

or civic purposes, is in the public interest.]

18

The General Assembly hereby declares that the playing of

19

games of chance by certain nonprofit associations for the

20

primary purpose of raising funds for charitable or civic

21

purposes is in the public interest.

22

It is hereby declared to be the policy of the General

23

Assembly that all phases of licensing, operation and regulation

24

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

25

laws and regulations with respect thereto as well as all

26

gambling laws should be strictly construed and rigidly enforced.

27

The General Assembly recognizes the possibility of

28

association between commercial gambling and organized crime, and

29

wishes to discourage commercialization of small games of chance,

30

prevent participation by organized crime and prevent the

- 37 -

 


1

diversion of funds from the purposes herein authorized.

2

Section 3.  The definitions of "civic and service

3

associations," "club," "daily drawing," "eligible

4

organizations," "fraternal organizations," "games of chance,"

5

"law enforcement official," "public interest purposes," "raffle"

6

and "weekly drawing" in section 3 of the act, amended December

7

19, 1990 (P.L.812, No.195) and October 18, 2000 (P.L.602,

8

No.79), are amended and the section is renumbered and amended by

9

adding definitions to read:

10

Section [3] 103.  Definitions.

11

The following words and phrases when used in this act shall

12

have the meanings given to them in this section unless the

13

context clearly indicates otherwise:

14

* * *

15

"Civic and service [associations] association."  Any

16

Statewide or branch, lodge or chapter of a nonprofit national or

17

State organization which is authorized by its written

18

constitution, charter, articles of incorporation or bylaws to

19

engage in a civic or service purpose within this Commonwealth,

20

which shall have existed in this Commonwealth for one year. The

21

term also means a similar local nonprofit organization, not

22

affiliated with a national or State organization, which is

23

recognized by a resolution adopted by the governing body of the

24

municipality in which the organization conducts its principal

25

activities. The term shall include[, but not be limited to,] 

26

Statewide or local bona fide sportsmen's and wildlife

27

associations, federations or clubs, [Statewide or local in

28

nature,] volunteer fire companies, volunteer rescue squads and

29

volunteer ambulance associations and [bona fide] senior citizens

30

organizations. In the case of [bona fide] senior citizens

- 38 -

 


1

organizations, the licensing authority may accept alternative

2

documentation for proof of purposes when there are no bylaws or

3

articles of incorporation in existence. The term shall also

4

include nonprofit organizations which are established to promote

5

and encourage participation and support for extracurricular

6

activities within the established primary and secondary public,

7

private and parochial school systems. Such organizations must be

8

recognized by a resolution adopted by the appropriate governing

9

body. In the case of organizations associated with the public

10

school system, the governing body shall be the school board of

11

the school district. In the case of private or parochial school

12

organizations, that body shall be either the board of trustees

13

or the Archdiocese.

14

"Club."  [A club, as defined in section 102] An organization

15

that:

16

(1)  has been issued a club license under Article 4 of

17

the act of April 12, 1951 (P.L.90, No.21), known as the

18

Liquor Code[, that]; and

19

(2)  qualifies as an exempt organization under section

20

501(c) or 527 of the Internal Revenue Code of [1954 (68A

21

Stat. 3] 1986 (Public Law 99-514, 26 U.S.C. § 501(c) or 527)

22

[and is licensed to sell liquor at retail and has a

23

charitable, religious or civic purpose or is organized to

24

benefit a political party].

25

"Club licensee."  A club that holds a license to conduct

26

small games of chance.

27

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

28

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

29

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

30

on the licensed eligible organization's premises during the same

- 39 -

 


1

operating day. The term includes games of chance commonly known

2

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

3

[Nothing in this act shall be construed to prohibit the carrying

4

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

5

in the game on a particular operating day.] Daily drawing

6

winners may be determined with the aid of a passive selection

7

device or reference to drawings conducted by the department

8

pursuant to the act of August 26, 1971 (P.L.351, No.91), known

9

as the State Lottery Law. Daily drawing chances may not be sold

10

for an amount in excess of $1, and no more than one chance may

11

be sold to an individual during the same operating day.

12

* * *

13

"Eligible [organizations] organization."  Includes qualifying

14

nonprofit charitable, religious, fraternal and veterans

15

organizations, clubs and civic and service associations as

16

defined by this act. In order to qualify as an eligible

17

organization for purposes of this act, an organization shall

18

have been in existence and fulfilling its purposes for one year

19

prior to the date of application for a license.

20

"Fraternal [organizations] organization."  A nonprofit

21

organization within this Commonwealth which is created and

22

carried on for the mutual benefit of its members, has a limited

23

membership and a representative form of government and is a

24

branch, lodge or chapter of a national or State organization.

25

Such organizations shall have been in existence in this

26

Commonwealth and fulfilling their purposes for one year prior to

27

the date of application for a license.

28

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

29

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

30

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

- 40 -

 


1

assistance of any mechanical or electrical devices or media

2

other than a dispensing machine or passive selection device and

3

further provided that the particular chance taken by any person

4

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

5

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

6

determined solely at the discretion of the purchaser. This

7

definition shall not be construed to authorize any other form of

8

gambling currently prohibited under any [provision of Title 18

9

of the Pennsylvania Consolidated Statutes (relating to crimes

10

and offenses)] other law. Nothing in this act shall be construed

11

to authorize games commonly known as "table games," "slot

12

machines" or "video poker."

13

"General operating expenses."

14

(1)  The following operating expenses associated with the

15

real property owned or leased by an eligible organization and

16

used for public interest purposes:

17

(i)  Real property taxes.

18

(ii)  Utilities.

19

(iii)  Heating and air conditioning.

20

(iv)  Water and sewer.

21

(v)  Property insurance.

22

(vi)  Liability insurance.

23

(vii)  Mortgage payments.

24

(viii)  Interior and exterior repairs, including

25

parking lot repairs.

26

(ix)  New facility construction.

27

(2)  The term shall not include wages, alcohol purchases

28

or payment of any fine levied against the eligible

29

organization.

30

"Law enforcement official."  A municipal police officer, a

- 41 -

 


1

member of the Pennsylvania State Police, including the Bureau of

2

Liquor Control Enforcement, the sheriff of a county or a deputy

3

sheriff.

4

* * *

5

"Licensed distributor."  A distributor of games of chance

6

licensed under section 304.

7

* * *

8

"Prize."  Cash or merchandise awarded from a game of chance.

9

"Proceeds."  The difference between:

10

(1)  the gross revenue collected by a licensed eligible

11

organization from the conduct of a game of chance; and

12

(2)  (i)  the amount of prizes paid by a licensed

13

eligible organization from a game of chance; and

14

(ii)  the purchase of games of chance.

15

"Public interest purposes."  One or more of the following:

16

(1)  Benefiting persons, other than members of the

17

eligible organization, by enhancing their opportunity for

18

religious or education advancement, by relieving or

19

protecting them from disease, suffering or distress, by

20

contributing to their physical, emotional or social well-

21

being, by assisting them in establishing themselves in life

22

as worthy and useful citizens or by increasing their

23

comprehension of and devotion to the principles upon which

24

this nation was founded.

25

(2)  Initiating, performing or fostering worthy public

26

works or enabling or furthering the erection or maintenance

27

of public structures.

28

(3)  Lessening the burdens borne by government or

29

voluntarily supporting, augmenting or supplementing services

30

which government would normally render to the people.

- 42 -

 


1

(4)  Improving, expanding, maintaining or repairing real

2

property owned or leased by an eligible organization and used

3

exclusively for purposes specified in [paragraphs] Paragraph 

4

(1), (2) [and] or (3).

5

The term does not include the erection or acquisition of any

6

real property, unless the property will be used exclusively for

7

one or more of the purposes specified in this definition.

8

* * *

9

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

10

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

11

random drawing of corresponding ticket stubs to take place at a

12

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

13

of chance shall include lotteries but not daily drawings or

14

weekly drawings. Raffle winners may be determined by reference

15

to drawings conducted by the department pursuant to the act of

16

August 26, 1971 (P.L.351, No.91), known as the State Lottery

17

Law.

18

* * *

19

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

20

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

21

prize with the winner determined by a random drawing to take

22

place on the licensed eligible organization's premises at the

23

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

24

construed to prohibit the carrying over of a jackpot where the

25

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

26

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

27

passive selection device or reference to drawings conducted by

28

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

29

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

30

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

- 43 -

 


1

Section 4.  The act is amended by adding a chapter heading to

2

read:

3

CHAPTER 3

4

GAMES OF CHANCE

5

Section 5.  Section 4 of the act, amended December 19, 1990

6

(P.L.812, No.195), is renumbered and amended to read:

7

Section [4] 301.  Games of chance permitted.

8

Every eligible organization to which a license has been

9

issued under the provisions of this act may conduct games of

10

chance for the purpose of raising funds for general operating

11

expenses and for public interest purposes. [All proceeds of

12

games of chance shall be used exclusively for public interest

13

purposes or for the purchase of games of chance as permitted by 

14

this act.] Proceeds of games of chance of an eligible

15

organization shall be used as follows:

16

(1)  Not less than 70% of proceeds shall be used for

17

public interest purposes as permitted by this act.

18

(2)  Up to 30% of proceeds may be used for general

19

operating expenses.

20

(3)  Proceeds may not be used for wages, alcohol or food

21

purchases or for the payment of any fine levied against the

22

eligible organization.

23

(4)  Amounts retained under paragraph (1) shall be

24

expended within the same calendar year unless the eligible

25

organization notifies the Pennsylvania State Police that

26

funds are being retained for a substantial purchase or

27

project. Notification shall include a description of the

28

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

29

purchase or project.

30

Section 6.  Section 5 of the act, amended December 19, 1990

- 44 -

 


1

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

2

renumbered and amended to read:

3

Section [5] 302.  Prize limits and reporting.

4

[(a)  Individual prize limit.--The maximum cash value which

5

may be awarded for any single chance shall be $500.

6

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

7

merchandise shall be awarded by any eligible organization in any

8

seven-day period.

9

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

10

merchandise shall be awarded in raffles in any calendar month.

11

(d)  Exception.--An eligible organization may conduct a

12

raffle and award a prize or prizes valued in excess of $500 each

13

only under the following conditions:

14

(1)  The licensing authority has issued a special permit

15

for the raffle under section 11.

16

(2)  Eligible organizations shall be eligible to receive

17

no more than two special permits in any licensed year except

18

that volunteer fire, ambulance and rescue organizations shall

19

be eligible to receive no more than three special permits in

20

any licensed year.

21

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

22

permit.

23

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

24

than $100,000 per calendar year.

25

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

26

governed by the prize limitations contained in subsections (a)

27

and (b). An eligible organization shall not conduct daily

28

drawings during a period when a weekly drawing is taking place.

29

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

30

subsections (a) and (b) may be exceeded by a daily drawing under

- 45 -

 


1

the following circumstances: a daily drawing may award a prize

2

where the cash value is in excess of $500 if such prize is the

3

result of a carryover of a drawing or drawings which resulted

4

from the winning number in such drawing or drawings not being

5

among the eligible entrants in such drawings. Nothing contained

6

herein shall authorize the prize limitations as contained in

7

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

8

to conduct a drawing on an operating day during which chances

9

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

10

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

11

chance was sold to an eligible participant.

12

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

13

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

14

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

15

generated from such drawing, the limitations contained in

16

subsection (b) shall not apply.

17

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

18

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

19

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

20

by a weekly drawing under the following circumstances: a weekly

21

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

22

$5,000 if such prize is the result of a carryover of a drawing

23

or drawings which resulted from the winning number or numbers in

24

such drawing or drawings not being among the eligible entrants

25

in such drawings. Nothing contained in this act shall authorize

26

the prize limitations as contained in subsection (b) to be

27

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

28

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

29

a weekly drawing for which chances were sold in excess of $1. An

30

eligible organization shall not conduct weekly drawings during a

- 46 -

 


1

period when a daily drawing is taking place.]

2

(a)  Maximum limits.--Except as provided under this section,

3

the following limits shall apply to prizes awarded by a licensed

4

eligible organization:

5

(1)  The maximum prize which may be awarded for any

6

single chance shall be $1,000.

7

(2)  No more than $25,000 in prizes shall be awarded from

8

any games of chance in any seven-day period.

9

(b)  Raffles.--The following shall apply to raffles:

10

(1)  No more than $10,000 in prizes shall be awarded in

11

raffles in any calendar month.

12

(2)  An eligible organization may conduct a raffle and

13

award a prize valued in excess of $1,000 if all of the

14

following apply:

15

(i)  The licensing authority has issued a special

16

permit for the raffle under section 308.

17

(ii)  A licensed eligible organization shall be

18

eligible to receive no more than three special permits in

19

any licensed term except that volunteer fire, ambulance

20

and rescue organizations shall be eligible to receive no

21

more than five special permits in any licensed term.

22

(iii)  Only one raffle may be conducted under each

23

special permit issued under section 308.

24

(iv)  The total cash value of all prizes awarded

25

under this subsection paragraph may be no more than

26

$100,000 per licensed term.

27

(c)  Daily drawings.--The following shall apply to daily

28

drawings:

29

(1)  A licensed eligible organization may not conduct

30

daily drawings during a period when a weekly drawing is

- 47 -

 


1

taking place.

2

(2)  The following shall apply:

3

(i)  Notwithstanding the prize limitation under

4

subsection (a)(1) and (2), a daily drawing may award a

5

prize in excess of $1,000 if the prize is the result of a

6

carryover of a drawing which resulted from the winning

7

number in the drawing not being among the eligible

8

entrants in the drawings.

9

(ii)  Nothing under this paragraph shall authorize

10

the prize limitations under subsection (a)(1) and (2) to

11

be exceeded:

12

(A)  as a result of a failure to conduct a

13

drawing on an operating day during which chances were

14

sold for a daily drawing; or

15

(B)  for a daily drawing for which chances were

16

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

17

chance was sold to an eligible participant.

18

(d)  Weekly drawing.--The following shall apply to weekly

19

drawings:

20

(1)  A licensed eligible organization may not conduct

21

weekly drawings during a period when a daily drawing is

22

taking place.

23

(2)  The following shall apply:

24

(i)  Notwithstanding the prize limitation under

25

subsection (a)(2), a weekly drawing may award a prize in

26

excess of $30,000 if the prize is the result of a

27

carryover of a drawing which resulted from the winning

28

number in the drawing not being among the eligible

29

entrants in the drawings.

30

(ii)  Nothing under this subsection shall authorize

- 48 -

 


1

the prize limitation under subsection (a)(2) to be

2

exceeded:

3

(A)  as a result of a failure to conduct a

4

drawing for a week during which chances were sold for

5

a weekly drawing; or

6

(B)  for a weekly drawing for which chances were

7

sold in excess of $1.

8

(e)  Full payout.--If a daily drawing or weekly drawing is

9

set up or conducted in such a manner as to pay out or award 100%

10

of the gross revenues generated from the drawing, the

11

limitations contained under subsection (a)(2) and (3) shall not

12

apply.

13

(f)  Reporting requirements.--Each licensed eligible

14

organization shall report to the department prizes awarded as

15

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

16

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

17

Section 7.  Sections 6 and 7 of the act, amended December 19,

18

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

19

Section [6] 303.  Sales limited.

20

(a)  General rule.--No person shall sell, offer for sale or

21

furnish games of chance for use within this Commonwealth except

22

to [an] a licensed eligible organization or [distributor] 

23

licensed distributor under this act.

24

(b)  Organizations.--No game of chance, other than a raffle

25

conducted under section 302, sold, offered for sale or furnished

26

to a licensed eligible organization for use within this

27

Commonwealth shall contain, permit, depict or designate a prize

28

having a cash value in excess of [$500] $1,000.

29

Section [7] 304.  Distributor licenses.

30

(a)  License required.--No person shall sell, offer for sale

- 49 -

 


1

or furnish games of chance to eligible organizations licensed

2

under this act unless such person shall have obtained a

3

distributor license as provided in this section.

4

(b)  Application.--An applicant for the grant or renewal of a

5

distributor license issued pursuant to this section shall

6

provide to the department, upon the form prescribed, all of the

7

following:

8

(1)  The applicant's State sales tax number.

9

(2)  The applicant's State corporate tax number.

10

(3)  The applicant's State employer withholding tax

11

number.

12

(4)  The applicant's unemployment compensation account

13

number.

14

(5)  A statement that:

15

(i)  all State tax reports have been filed and all

16

State taxes paid;

17

(ii)  all State taxes are subject to a timely

18

administrative or judicial appeal; or

19

(iii)  all State taxes are subject to a duly approved

20

deferred payment plan.

21

(6)  The names and business addresses of all owners,

22

officers, directors, partners and sales personnel.

23

(c)  Waiver of confidentiality.--An applicant for the grant

24

or renewal of [any] a distributor license issued pursuant to

25

this section shall, by the filing of an application insofar as

26

it relates to the department, waive any confidentiality with

27

respect to State tax information in the possession of the

28

department, the Office of Attorney General or the Department of

29

Labor and Industry regarding that applicant, regardless of the

30

source of that information, and shall consent to the providing

- 50 -

 


1

of that information to the department by the Office of Attorney

2

General or the Department of Labor and Industry.

3

(d)  Review of tax status.--Upon receipt of any application

4

for the grant or renewal of [any] a distributor license issued

5

pursuant to this section, the department shall review the State

6

tax status of the applicant. The department shall request State

7

tax information regarding the applicant from the Office of

8

Attorney General or the Department of Labor and Industry and

9

that information shall be provided.

10

(e)  Limitation on approval.--The department shall not

11

approve any application for the grant or renewal of [any] a

12

distributor license issued pursuant to this section where the

13

applicant has failed to:

14

(1)  provide any of the information required by

15

subsection (b);

16

(2)  file required State tax reports; or

17

(3)  pay any State taxes not subject to a timely

18

administrative or judicial appeal or subject to a duly

19

authorized deferred payment plan.

20

(f)  Records.--[The] Each distributor licensee shall keep

21

such records, reports and books as the department shall

22

prescribe. [Applicants] Annually, each distributor licensee 

23

shall be required to make such records, reports and books

24

available [as] to law enforcement officials as requested or in a

25

manner required by the department pursuant to regulation.

26

(g)  Ineligibility.--The department shall not issue or renew

27

a distributor license for the sale of games of chance to a

28

person, including any corporation, firm or partnership which has

29

as an officer, director or other person in a supervisory or

30

management position, or employee eligible to make sales on

- 51 -

 


1

behalf of the distributor, who:

2

(1)  has been convicted of a felony in a state or Federal

3

court within the past five years; or

4

(2)  has been convicted within ten years of the date of

5

application in a state or Federal court of a violation of the

6

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

7

Law, or of this act or of a gambling-related offense under

8

Title 18 of the Pennsylvania Consolidated Statutes (relating

9

to crimes and offenses) or other comparable State or Federal

10

law.

11

(h)  License and renewal fees.--The fee for a distributor

12

license shall be [$1,000] $2,000. Licenses shall be renewable on

13

[an annual] a biennial basis.

14

(i)  Exception.--[This] Except as provided under section 504,

15

this section shall not apply to the manufacture or distribution

16

of raffle tickets.

17

Section 8.  Section 8 of the act is renumbered and amended to

18

read:

19

Section [8] 305.  Registration of manufacturers.

20

(a)  Registration required.--No manufacturer of games of

21

chance shall sell any games of chance to any person unless the

22

manufacturer has registered with the department and has been

23

issued a certificate of registration.

24

(b)  Annual certificate; fee.--A certificate under this

25

section shall be valid for [one year] two years. The [annual]

26

fee for registration shall be [$2,000] $4,000.

27

(c)  Prohibited sales.--A manufacturer shall not sell games

28

of chance to any person not licensed as a distributor unless the

29

manufacturer is also a licensed distributor.

30

(d)  Exception.--This section shall not apply to the

- 52 -

 


1

manufacture or distribution of raffle tickets.

2

(e)  Records.--The manufacturer shall keep records, reports

3

and books as prescribed by the department. Annually,

4

manufacturers shall be required to make the records, reports and

5

books available to the department and law enforcement officials

6

as requested or in a manner required by the department by

7

regulation.

8

Section 9.  Section 9 of the act, amended December 19, 1990

9

(P.L.812, No.195), is renumbered and amended to read:

10

Section [9] 306.  Regulations of department.

11

(a)  Authorization.--The department shall promulgate

12

regulations to:

13

(1)  Impose minimum standards and restrictions applicable

14

to games of chance manufactured for sale in this

15

Commonwealth, which may include standards and restrictions

16

which specify the maximum number of chances available to be

17

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

18

standards and restrictions as the department deems necessary

19

for the purposes of this act. The department shall consider

20

standards adopted by the National Association of Gambling

21

Regulatory Agencies and other standards commonly accepted in

22

the industry.

23

(2)  Establish procedures by which manufacturers may

24

register and distributors of games of chance may apply for

25

licensure on forms which the department shall provide. Forms

26

provided by the department shall include a requirement that

27

manufacturer and distributor applicants provide a criminal

28

history record information check obtained from the

29

Pennsylvania State Police as defined in 18 Pa.C.S. § 9102

30

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

- 53 -

 


1

9121(b) (relating to general regulations) for all officers,

2

managers and other persons responsible for overseeing games

3

of chance.

4

(3)  Provide for the suspension or revocation of

5

distribution licenses or manufacturer certificates for

6

violations of this act or regulations of the department.

7

(4)  Carry out other provisions of this act.

8

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

9

shall not be construed to authorize the department to promulgate

10

regulations providing for recordkeeping requirements for

11

licensed eligible organizations which require unreasonable or

12

unnecessary information or a repetitious listing of information.

13

The department shall strive to keep such recordkeeping

14

requirements from being an undue hardship or burden on licensed 

15

eligible organizations. Under no circumstances shall the

16

department require the retention of records for a period in

17

excess of two years.

18

(c)  Report.--

19

(1)  The department shall, on a biennial basis, review

20

this act and any rules or regulations promulgated under this

21

act and submit a report to the General Assembly with its

22

recommendations. The recommendations for legislative action

23

may include:

24

(i)  Improvements to the enforcement provisions.

25

(ii)  Additional types of games of chance authorized.

26

(iii)  Changes in the prize limitations for games of

27

chance.

28

(2)  The department shall consult with law enforcement

29

officials in formulating its recommendations.

30

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

- 54 -

 


1

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

2

renumbered and amended to read:

3

Section [10] 307.  Licensing of eligible organizations to

4

conduct games of chance.

5

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

6

conduct or operate any games of chance unless such eligible

7

organization has obtained and maintains a valid license or

8

limited occasion license issued pursuant to this section.

9

Auxiliary groups within eligible organizations shall be eligible

10

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

11

eligible organization provided that the auxiliary group or

12

groups are listed on the application and license of the eligible

13

organization. No additional licensing fee shall be charged for

14

an auxiliary group's eligibility under this act. Auxiliary

15

groups shall not include branches, lodges or chapters of a

16

Statewide organization.

17

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

18

license, upon application, within 30 days any eligible

19

organization meeting the requirements for licensure contained in

20

this act to conduct and operate games of chance at such

21

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

22

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

23

be charged to each eligible organization shall be $100, except

24

for limited occasion licenses which shall be $10. Licenses shall

25

be renewable annually upon the anniversary of the date of issue.

26

The license fee shall be used by the licensing authority for the

27

administration of this act.

28

(b.1)  Location of small games of chance.--

29

(1)  Every licensed eligible organization, except a

30

limited occasion licensee, shall conduct small games of

- 55 -

 


1

chance only at a licensed premises. The licensed premises

2

shall be indicated on the eligible organization's license

3

application. Only one license shall be issued per licensed

4

premises. Except as provided under subparagraph (iii), a

5

licensed eligible organization may not use another licensed

6

eligible organization's premises to conduct its games of

7

chance, and no licensed eligible organization may permit its

8

premises to be used for small games of chance by another

9

licensed eligible organization.

10

(i)  Where there exists a location or premises which

11

is the normal business or operating site of the eligible

12

organization and the location or premises is owned or

13

leased by that eligible organization to conduct its

14

normal business, that site shall be the eligible

15

organization's licensed premises for small games of

16

chance conducted by the eligible organization. If that

17

location consists of more than one building [and the

18

eligible organization wishes to conduct its games in a

19

different building at that location from the one that is

20

listed on its application and license, the eligible

21

organization must notify, in writing, the district

22

attorney and the licensing authority of the change in

23

building site and the dates and times that will be

24

affected], the eligible organization shall designate on

25

its application the building that will be the licensed

26

premises.

27

(ii)  When an eligible organization does not own or

28

lease a specific location to conduct its normal business,

29

[that] the eligible organization [may use another

30

eligible organization's premises to conduct its games or] 

- 56 -

 


1

may make [such other] arrangements that are consistent

2

with this act to establish a licensed premises,

3

including[, but not limited to,] leasing a premise under

4

a written agreement for a rental [which is not], except

5

that the rental may not be determined by either the

6

amount of receipts realized from the [playing] conduct of

7

games of chance [nor] or the number of people attending

8

[except that an]. An eligible organization may lease a

9

facility for a banquet [where a per head charge is

10

applied] in connection with the serving of a meal based

11

on a per-head charge. When such eligible organization

12

changes the site of its games from that which is listed

13

on its application and license, the eligible organization

14

must notify, in writing, the district attorney and

15

licensing authority of the change in their games' site

16

[and dates and times that will be affected].

17

(iii)  An eligible organization that has obtained a

18

limited occasion license under subsection (b.3) may use

19

another eligible organization's licensed premises to

20

conduct its games of chance. When a licensed eligible

21

organization is permitting a limited occasion licensee to

22

use its licensed premises for purposes of small games of

23

chance, the eligible organization shall cease the

24

operation of its own small games of chance during the

25

period that the limited occasion licensee is conducting

26

its games on the premises.

27

(2)  Unless otherwise provided in this chapter, all

28

aspects of the operation of games of chance shall be

29

conducted on the licensed premises.

30

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

- 57 -

 


1

other provisions of this section, [an] all of the following

2

apply:

3

(1)  A licensed eligible organization may, on one

4

occasion during a license term, conduct small games of chance

5

at a location off its premises when [such games] the games of

6

chance are part of an annual carnival, fair, picnic or

7

banquet held or participated in by that licensed eligible

8

organization on a historical basis. The licensed eligible

9

organization must notify, in writing, the district attorney

10

and licensing authority of the location, date and times of

11

[such events] the event where it will be conducting small

12

games of chance.

13

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

14

in a municipality which has adopted the provisions of this

15

act by an affirmative vote in a municipal referendum. A

16

licensed eligible organization which plans to sell raffle

17

tickets in a municipality located in a county other than the

18

county in which the eligible organization is licensed shall

19

notify that county's district attorney and licensing

20

authority as to the location and the dates that the eligible

21

organization plans to sell raffle tickets.

22

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

23

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

24

specific location to conduct their normal business may apply for

25

a limited occasion license to conduct small games of chance on

26

not more than three occasions covering a total of seven days

27

during a licensed year. A limited occasion license entitles

28

eligible organizations holding such a license to conduct no more

29

than two raffles during a licensed year where prizes may not

30

exceed the established limits for regular monthly raffles.

- 58 -

 


1

Holders of a limited occasion [licenses] license may not apply

2

or be granted any other license or special permit under this

3

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

4

act shall apply or be granted a limited occasion license.

5

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

6

for a person, corporation, association, partnership or other

7

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

8

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

9

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

10

eligible organization to rent or lease under any terms a

11

[facility or] building or facility which is used exclusively for

12

the [conducting] conduct of small games of chance.

13

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

14

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

15

chance will be conducted.

16

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

17

[comply with the following restrictions and rules governing the

18

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

19

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

20

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

21

(2)  [No eligible organization shall permit] Permitting 

22

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

23

State court within the past five years or has been convicted

24

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

25

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

26

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

27

or participate in the operation of games of chance.

28

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

29

compensation to any person for conducting any games of

30

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

- 59 -

 


1

officers, directors, bar personnel and bona fide members of

2

the eligible organization.

3

(3.1)  Permitting a manager, officer, director, bar

4

personnel or other operator of the game of chance, except for

5

a raffle, from being a player in the game of chance the

6

individual is operating.

7

(4)  [Games shall be conducted only] Conducting small

8

games of chance on any premises other than on the licensed

9

premises or as otherwise provided by this act.

10

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

11

Leasing the licensed premises under either an oral or a

12

written agreement for a rental which is determined by either

13

the amount of receipts realized from the playing of games of

14

chance or the number of people attending, except that an

15

eligible organization may lease a facility for a banquet

16

where a per head charge is applied in connection with the

17

serving of a meal. An eligible organization shall not lease

18

such premises from any person who has been convicted of a

19

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

20

years.

21

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

22

raffles, daily drawings and weekly drawings[, shall be

23

purchased only from manufacturers and distributors] from any

24

person other than a licensed distributor approved by the

25

department.

26

[(7)  No licensed eligible organization shall permit its

27

premises to be used for small games of chance by another

28

licensed eligible organization at the same time that it is

29

conducting small games of chance on the premises. When a

30

licensed eligible organization is permitting another licensed

- 60 -

 


1

eligible organization to use its premises for purposes of

2

small games of chance, it must cease the operation of its own

3

small games of chance during the period that the other

4

licensed eligible organization is conducting its games on the

5

premises.

6

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

7

in any municipality in this Commonwealth which has adopted

8

the provisions of this act by an affirmative vote in a

9

municipal referendum. A licensed eligible organization which

10

plans to sell raffle tickets in a municipality located in a

11

county other than the county in which the eligible

12

organization is licensed must notify that county's district

13

attorney and licensing authority as to the location and the

14

dates that the eligible organization plans to sell raffle

15

tickets.]

16

(7)  Operating games of chance on a licensed premises

17

when another eligible organization is operating games of

18

chance.

19

(d.1)  Bank account and records.--Each licensed eligible

20

organization shall establish and maintain a bank account to hold

21

the proceeds of small games of chance, which shall be separate

22

from all other bank accounts belonging to the licensed eligible

23

organization. Account records shall show all expenditures and

24

income and shall be retained by the licensed eligible

25

organization for at least two years.

26

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

27

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

28

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

29

contain an annual report filed by the eligible organization and 

30

an affidavit to be affirmed by the executive officer or

- 61 -

 


1

secretary of the eligible organization stating that:

2

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

3

the eligible organization to operate or play games of chance.

4

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

5

played has adequate means of ingress and egress and adequate

6

sanitary facilities available in the area.

7

(3)  The eligible organization is not leasing such

8

premises from the owner thereof under an oral agreement, nor

9

is it leasing such premises from the owner thereof under a

10

written agreement at a rental which is determined by the

11

amount of receipts realized from the playing of games of

12

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

13

eligible organization may lease a facility for a banquet

14

where a per head charge is applied in connection with the

15

serving of a meal.

16

(4)  The eligible organization has a separate bank

17

account to hold all proceeds of small games of chance.

18

(5)  The eligible organization has complied with the

19

annual financial report filing.

20

(e.1)  Additional application components.--As part of the

21

initial or renewal application filed under subsection (e), each

22

eligible organization shall file an annual report with the

23

licensing authority. The first annual report required under this

24

paragraph shall contain information for the 12-month period

25

ending at least 60 days, but not more than 90 days, prior to the

26

submission of the application. Subsequent annual reports shall

27

contain information for the most recent 12-month period ending

28

in the same month as the initial report.

29

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

30

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

- 62 -

 


1

Department of Revenue.

2

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

3

include with any license or renewal license issued to an

4

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

5

municipalities within the licensing county which have approved

6

the referendum question on small games of chance.

7

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

8

include the results of a criminal history record information

9

check obtained from the Pennsylvania State Police, as defined in

10

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

11

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

12

executive officer or secretary of the eligible organization

13

making the application for a license and all other responsible

14

persons listed on the application.

15

Section 11.  Section 11 of the act, amended December 19, 1990

16

(P.L.812, No.195), is renumbered and amended to read:

17

Section [11] 308.  Special permits.

18

(a)  Issuance and fee.--The licensing authority shall issue a

19

special permit for each raffle in which the [licensee] licensed 

20

eligible organization proposes to award individual prizes having

21

a cash value in excess of [$500] $1,000. The licensing authority

22

may establish and collect a fee not to exceed $25 for the

23

issuance of special permits under this section.

24

(b)  Permit application.--Each special permit application

25

shall specify the location where the actual drawing will be

26

held, the number of chances to be sold, the price per chance and

27

the cash value of the prize or prizes to be awarded.

28

Section 12.  The act is amended by adding a chapter to read:

29

CHAPTER 5

30

CLUB LICENSEES

- 63 -

 


1

Section 501.  Report.

2

The following shall apply:

3

(1)  By March 31, 2013, and by March 31 of each year

4

thereafter, each club licensee shall submit an annual report

5

to the Pennsylvania State Police for the preceding calendar

6

year on a form prescribed by the Pennsylvania State Police.

7

(2)  The report must be filed under oath or affirmation

8

of an authorized officer of the club licensee.

9

(3)  The report must include all of the following

10

information for the prior calendar year:

11

(i)  The proceeds received by the club licensee from

12

each game of chance conducted, itemized by week.

13

(ii)  The distribution of proceeds under section

14

502(a)(1) and (2).

15

(iii)  The amount of proceeds for all games of chance

16

not purchased from a licensed distributor which the club

17

licensee conducted, itemized by week.

18

(iv)  The amount of prizes paid from games of chance

19

and itemized costs related to the conduct of games of

20

chance.

21

(v)  The amounts distributed for public interest

22

purposes itemized by the recipient.

23

(vi)  An itemized list of expenditures made or

24

amounts retained for general operating expenses.

25

(vii)  The address and county in which the club

26

licensee is located.

27

(viii)  Other information or documentation required

28

by the Pennsylvania State Police.

29

Section 502.  Proceeds.

30

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

- 64 -

 


1

received by a club licensee shall be distributed as follows:

2

(1)  Not less than 70% of proceeds shall be paid to

3

organizations other than the club licensee for public

4

interest purposes.

5

(2)  Up to 30% of proceeds may be used for general

6

operating expenses.

7

(b)  Prohibition.--Proceeds shall not be used for wages,

8

alcohol or food purchases or for the payment of any fine levied

9

against the club licensee.

10

(c)  Proceeds for public interest purposes.--Amounts retained

11

by a club licensee under subsection (a)(2) shall be expended

12

within the same calendar year unless the club licensee notifies

13

the department that funds are being retained for a substantial

14

purchase or project. Notification shall include a description of

15

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

16

the purchase or project.

17

Section 503.  Documentation.

18

Every sale of a game of chance by a licensed distributor to a

19

club licensee shall be documented by an invoice listing the

20

names and types of games of chance sold, quantities of each game

21

sold and any other information related to the sale of games of

22

chance as required by the Pennsylvania State Police. Failure to

23

provide correct invoices shall result in a penalty under section

24

706.

25

Section 504.  Restriction.

26

Notwithstanding section 307(d)(6), all punchboards, raffles

27

and pull-tabs shall be purchased from a licensed distributor

28

approved by the department.

29

Section 505.  Failure to comply.

30

(a)  Offense defined.--A club licensee commits a misdemeanor

- 65 -

 


1

of the third degree for failing to comply with this chapter or

2

failing to provide their books, accounts and records relating to

3

the conduct of games of chance under section 701(b).

4

(b)  Reporting.--The Pennsylvania State Police shall provide

5

a list of club licensees that fail to file reports under this

6

chapter by the required dates or fail to comply with sections

7

502 and 503 to the applicable licensing authority, district

8

attorney and the department.

9

Section 13.  The act is amended by adding a chapter heading

10

to read:

11

CHAPTER 7

12

ENFORCEMENT

13

Section 14.  Section 12 of the act, amended December 19, 1990

14

(P.L.812, No.195), is renumbered and amended to read:

15

Section [12] 701.  Revocation of licenses.

16

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

17

refuse to renew the license of any eligible organization

18

whenever the district attorney finds upon complaint and

19

investigation that] following shall be grounds for the

20

suspension, revocation or nonrenewal of a license:

21

(1)  Any of the funds derived from the operation of games

22

of chance are used for any purpose other than [for public

23

interest purposes or for the purchase of games of chance as] 

24

those purposes permitted by this act.

25

(2)  Any person under 18 years of age is operating or

26

playing games of chance [as defined in this act].

27

(3)  The eligible organization has permitted any person

28

who has been convicted of a felony in a Federal or State

29

court within the past five years or has been convicted in a

30

Federal or State court within the past ten years of a

- 66 -

 


1

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

2

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

3

supervise or participate in the operation of games of chance.

4

(4)  The facility in which the games of chance are played

5

does not have adequate means of ingress and egress and does

6

not have adequate sanitary facilities available in the area.

7

(5)  Any person or persons other than a manager, officer,

8

director, bar personnel or a bona fide member of an eligible

9

organization have been involved in managing, setting up,

10

operating or running games of chance.

11

(5.1)  Any manager, officer, director, bar personnel or

12

other operator of the game of chance, except for a raffle,

13

has been a player in the game the individual is operating.

14

(6)  Any person has received compensation for conducting

15

games of chance.

16

(7)  Any prize has been awarded in excess of the limits

17

permitted under this act.

18

(8)  The eligible organization has violated any condition

19

of a special permit issued pursuant to section [11] 308.

20

(9)  The eligible organization conducts the games of

21

chance under a lease which calls for:

22

(i)  leasing such premises from the owner thereof

23

under an oral agreement; or

24

(ii)  leasing such premises from the owner thereof

25

under a written agreement at a rental which is determined

26

by the amount of receipts realized from the playing of

27

games of chance.

28

(10)  False or erroneous information was provided in the

29

original application or in any information provided to the

30

licensing authority, the department or the Pennsylvania State

- 67 -

 


1

Police in any application, renewal form or report.

2

(11)  An eligible organization has been convicted of a

3

violation of this act as evidenced by a certified record of

4

the conviction.

5

(12)  The eligible organization has permitted another

6

eligible organization to conduct small games of chance on its

7

licensed premises without suspending its own operation of

8

small games of chance during the period that the other

9

licensed eligible organization is conducting its games on the

10

premises.

11

(13)  The eligible organization has failed to keep and

12

maintain the records required under this act for a period of

13

at least two years.

14

(14)  A club licensee has failed to file an accurate

15

report under section 501.

16

(15)  A club licensee has failed to comply with section

17

501 or 502.

18

(b)  Production of records.--The district attorney may

19

require [licensees] licensed eligible organizations, registered

20

manufacturers and licensed distributors to produce their books,

21

accounts and records relating to the conduct of games of chance

22

in order to determine [whether a license should be revoked or

23

renewal thereof denied] if a violation of this act has occurred.

24

Licensees shall also be required upon request to [produce] 

25

provide their license, books, accounts and records relating to

26

the conduct of games of chance to other law enforcement

27

officials [upon proper request].

28

Section 15.  Section 13 of the act is renumbered to read:

29

Section [13] 702.  Enforcement.

30

(a)  District attorney.--The district attorney shall

- 68 -

 


1

investigate alleged violations of this act. If the district

2

attorney finds probable cause to believe that a violation has

3

occurred, he may file a complaint against the alleged violator

4

in the court of common pleas of said county, except in counties

5

of the first class where the complaint may be filed in the

6

municipal court. In addition, the district attorney shall

7

prosecute said complaint in the manner provided by law.

8

(b)  Other law enforcement officials.--Nothing in this act

9

shall be interpreted to restrict the power of State, county or

10

local law enforcement officials to conduct investigations and

11

enforce the provisions of this act.

12

Section 16.  Section 14 of the act, amended July 11, 1990

13

(P.L.449, No.108) and December 19, 1990 (P.L.812, No.195), is

14

renumbered and amended to read:

15

Section [14] 703.  Local option.

16

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

17

may be held on the date of the primary election immediately

18

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

19

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

20

issuance of licenses within the limits of such municipality

21

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

22

been held at the primary election preceding a municipal election

23

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

24

of this act at the primary election occurring the fourth year

25

after such prior election. Whenever electors equal to at least

26

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

27

at the last preceding general election shall file a petition

28

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

29

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

30

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

- 69 -

 


1

the resolution is filed with the board of elections of the

2

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

3

the county board of elections shall cause a question to be

4

placed on the ballot or on the voting machine board and

5

submitted at the primary election immediately preceding the

6

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

7

Do you favor the issuance of licenses

8

to conduct small games of chance in the

9

                 of                  ?

10

(b)  Vote.--If a majority of the electors voting on the

11

question vote "yes," then licenses shall be issued by the

12

licensing authority in such municipality, but if a majority of

13

the electors voting on any such question vote "no," then the

14

licensing authority shall have no power to issue or to renew,

15

upon their expiration, any licenses in such municipality, unless

16

and until, at a later election, a majority of the voting

17

electors vote "yes" on such question.

18

(c)  Voting proceedings.--Proceedings under this section

19

shall be in accordance with the provisions of the act of June 3,

20

1937 (P.L.1333, No.320), known as the Pennsylvania Election

21

Code.

22

(d)  Applicability.--This act applies only to those eligible

23

organizations located in municipalities which have adopted the

24

provisions of this act by an affirmative vote in a municipal

25

referendum in accordance with the provisions of this section.

26

(e)  Withdrawal of approval.--The referendum procedure

27

contained in this section shall also be available to withdraw

28

the approval of the issuance of such licenses within such

29

municipality which was granted through a prior referendum.

30

(f)  Special exception.--Notwithstanding any other provision

- 70 -

 


1

of this act to the contrary, in any municipality except a city

2

of the first class where an election was held pursuant to this

3

section on May 16, 1989, and a majority of the electors voted

4

"NO" on the question, the municipality shall be able to resubmit

5

the question, in accordance with the procedures set forth in

6

this section, at the general election immediately following [the

7

effective date of this amendatory act] July 11, 1990.

8

Section 17.  Section 15 of the act, amended December 19, 1990

9

(P.L.812, No.195), is renumbered and amended to read:

10

Section [15] 704.  Advertising.

11

[It shall be unlawful for any eligible organization or person

12

to advertise the prizes or their dollar value to be awarded in

13

games of chance, provided that prizes may be identified on

14

raffle tickets. Notwithstanding the prohibition of advertising

15

contained within this section, an eligible organization may

16

advertise prizes and values thereof in periodic publications

17

which are limited in their circulation to members of the

18

eligible organization.] Any licensed eligible organization or

19

person may advertise the prizes to be awarded in games of chance

20

if the advertisements contain the date, time, location, the

21

prizes that will be awarded and the name of the licensed

22

eligible organization. Advertisements to the public may be no

23

larger than 8 1/2 inches by 11 inches. An eligible organization

24

may advertise prizes in periodic publications which are limited

25

in their circulation to members of the eligible organization.

26

This section shall not apply to a sign displayed inside the

27

licensed premises.

28

Section 18.  Section 16 of the act is renumbered and amended

29

to read:

30

Section [16] 705.  Certain persons prohibited.

- 71 -

 


1

No licensed distributor nor any person who has been convicted

2

of a felony or of a violation of the act of July 10, 1981

3

(P.L.214, No.67), known as the Bingo Law, or of this act or of

4

any comparable State or Federal law shall have a pecuniary

5

interest in the operation or proceeds of games of chance.

6

Section 19.  Section 17 of the act, amended December 19, 1990

7

(P.L.812, No.195), is renumbered and amended to read:

8

Section [17] 706.  [Penalties] Criminal 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 and shall] $2,000 for a

13

first offense[,] and not exceeding $3,000 for a subsequent

14

violation. In addition, the following shall apply:

15

(1)  For a first offense, the eligible organization shall 

16

forfeit the license to conduct games of chance issued to the

17

eligible organization for [the remainder of the licensing

18

period or six months, whichever is longer, for] a period of

19

not more than 30 days.

20

(2)  For a second offense[,] within three years of the

21

first offense, the eligible organization shall forfeit [the] 

22

its license [issued to the eligible organization for the

23

remainder of the current licensing period and be ineligible

24

to be licensed for the following licensing period,] for a

25

period of not less than 30 days nor more than 180 days.

26

(3)  For a third or subsequent offense[,] within three

27

years of the most recent offense, the eligible organization

28

shall forfeit [the] its license [issued to the eligible

29

organization] and be ineligible for a license renewal for 30

30

months thereafter.

- 72 -

 


1

(b)  Individuals.--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 summary offense for a first violation. A

4

second violation of this act shall be punishable as a

5

misdemeanor of the third degree. A third or subsequent violation

6

shall be punishable as a misdemeanor of the first degree.

7

(c)  Distributors and manufacturers.--Any person who

8

distributes games of chance without a license or in violation of

9

any provision of this act or applicable regulations, and any

10

manufacturer of games of chance who delivers games of chance for

11

sale or distribution in this Commonwealth who fails to register

12

and obtain a permit therefor is guilty of a misdemeanor of the

13

first degree, provided that no license or permit shall be

14

required for the manufacture or distribution of raffle tickets.

15

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

16

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

17

conducted in accordance with the requirements of this act or the

18

rules and usages governing the game of chance, he:

19

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

20

upon or threatens any injury to a participant or other person

21

associated with the game of chance;

22

(2)  tampers with any person associated with the game of

23

chance;

24

[(2)] (3)  tampers with any [person or games] small game

25

of chance; or

26

[(3)] (4)  solicits, accepts or agrees to accept any

27

benefit.

28

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

29

manufactures or operates a small game of chance and who

30

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

- 73 -

 


1

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

2

of chance commits a misdemeanor of the first degree.

3

Section 20.  The act is amended by adding a chapter heading

4

to read:

5

CHAPTER 31

6

MISCELLANEOUS PROVISIONS

7

Section 21.  Section 18 of the act is renumbered to read:

8

Section [18] 3101.  Effective date.

9

This act shall take effect in 60 days.

10

Section 22.  This act shall take effect in 60 days.

11

Section 1.  The definition of "games of chance" in section

<--

12

103 of the act of December 19, 1988 (P.L.1262, No.156), known as

13

the Local Option Small Games of Chance Act, renumbered and

14

amended February 2, 2012 (P.L.7, No.2), is amended and the

15

section is amended by adding definitions to read:

16

Section 103.  Definitions.

17

The following words and phrases when used in this act shall

18

have the meanings given to them in this section unless the

19

context clearly indicates otherwise:

20

"50/50 drawing."  A game in which:

21

(1)  A participant buys a ticket for a chance at a prize

22

with the winner or winners determined by a random drawing of

23

a corresponding ticket.

24

(2)  The prize paid to the winner or winners is comprised

25

of one-half of the proceeds from the game and the remaining

26

proceeds retained by the eligible organization.

27

"A night at the races."  A game in which a participant places

28

a wager on a prerecorded horse race.

29

* * *

30

"Coin auction."  A game in which a participant buys a

- 74 -

 


1

numbered paddle for a chance to bid on a donated prize with the

2

winner determined by a random drawing of corresponding numbers.

3

* * *

4

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

5

drawings, 50/50 drawings, raffles, selective raffles, coin

6

auctions, a night at the races, Major League Baseball, National

7

Hockey League or National Basketball Association 50/50 raffles 

8

and pull-tabs, as defined in this act, provided that no such

9

game shall be played by or with the assistance of any mechanical

10

or electrical devices or media other than a dispensing machine

11

or passive selection device and further provided that the

12

particular chance taken by any person in any such game shall not

13

be made contingent upon any other occurrence or the winning of

14

any other contest, but shall be determined solely at the

15

discretion of the purchaser. This definition shall not be

16

construed to authorize any other form of gambling currently

17

prohibited under any provision of Title 18 of the Pennsylvania

18

Consolidated Statutes (relating to crimes and offenses) or

19

authorized under 4 Pa.C.S. (relating to amusements). Nothing in

20

this act shall be construed to authorize games commonly known as

21

"slot machines" or "video poker."

22

* * *

23

"Major League Baseball, National Hockey League or National

24

Basketball Association 50/50 raffle."  A game of chance

25

conducted by a Major League Baseball, National Hockey League or

26

National Basketball Association team that is affiliated with a

27

nonprofit organization at a home game in which 50% of the money

28

taken in by raffle ticket sales is offered as the prize and the

29

remaining 50% is retained by the affiliated nonprofit

30

organization sponsoring the raffle.

- 75 -

 


1

* * *

2

"Selective raffle."  A game in which a participant buys a

3

ticket or tickets for a chance to win a donated prize. The

4

participant places his or her ticket or tickets in a designated

5

location for the prize which he or she would like to win. The

6

winner for each prize is determined by a random drawing of

7

tickets with a corresponding number for the prize.

8

* * *

9

Section 2.  Section 301 of the act, renumbered and amended

10

February 2, 2012 (P.L.7, No.2), is amended to read:

11

Section 301.  Games of chance permitted.

12

Every eligible organization to which a license has been

13

issued under the provisions of this chapter may conduct games of

14

chance for the purpose of raising funds for public interest

15

purposes. Except as provided in Chapter 5, all proceeds of a

16

licensed eligible organization shall be used exclusively for

17

public interest purposes [or], for the purchase of games of

18

chance [as permitted], for the payment of the license fee or for

19

the payment of the fee for background checks, as required by

20

this act. An eligible organization, except a club licensee, may

21

use its proceeds from games of chance to fulfill its own public

22

interest purpose.

23

Section 3.  The act is amended by adding a section to read:

24

Section 302.1.  Major League Baseball, National Hockey League or

25

National Basketball Association 50/50 raffle.

26

(a)  General rule.--A person may purchase one or more Major

27

League Baseball, National Hockey League or National Basketball

28

Association 50/50 raffle tickets, and each ticket purchased

29

shall represent one entry in the drawing for a winner. A single

30

Major League Baseball, National Hockey League or National

- 76 -

 


1

Basketball Association 50/50 raffle ticket shall be randomly

2

chosen as the winner after a certain number of tickets are sold

3

or a specified time period expires as designated by the

4

charitable organization conducting the Major League Baseball,

5

National Hockey League or National Basketball Association 50/50

6

raffle.

7

(b)  Frequency.--A Major League Baseball, National Hockey

8

League or National Basketball Association team may conduct no

9

more than one Major League Baseball, National Hockey League or

10

National Basketball Association 50/50 raffle per home game. 

11

(b.1)  Sales restricted.--Tickets for the Major League

12

Baseball, National Hockey League or National Basketball

13

Association 50/50 raffle may not be sold in any seating area

14

designated by the Major League Baseball, National Hockey League

15

or National Basketball Association team as a family section.

16

(c)  Distribution of money collected.--The prize amount for a

17

Major League Baseball, National Hockey League or National

18

Basketball Association 50/50 raffle shall be 50% of the total

19

money collected from the sale of Major League Baseball, National

20

Hockey League or National Basketball Association 50/50 raffle

21

tickets. The other 50% of the total money collected from the

22

sale of Major League Baseball, National Hockey League or

23

National Basketball Association 50/50 raffle tickets shall be

24

donated within seven days from the date of the raffle by the

25

charitable organization conducting the Major League Baseball,

26

National Hockey League or National Basketball Association 50/50

27

raffle to the designated charitable organization for which the

28

raffle was conducted.

29

(d)  Designated charitable organization.--The charitable

30

organization conducting the Major League Baseball, National

- 77 -

 


1

Hockey League or National Basketball Association 50/50 raffle

2

shall disclose to the raffle ticket purchasers the designated

3

charitable organization for which the Major League Baseball,

4

National Hockey League or National Basketball Association 50/50

5

raffle is being conducted.

6

(e)  Unclaimed prizes.--Any Major League Baseball, National

7

Hockey League or National Basketball Association 50/50 raffle

8

prize remaining unclaimed by the winner at the end of the Major

9

League Baseball, National Hockey League or National Basketball

10

Association team's season shall be donated within 30 days from

11

the end of the season by the charitable organization conducting

12

the Major League Baseball, National Hockey League or National

13

Basketball Association 50/50 raffle to the designated charitable

14

organization for which the 50/50 raffle was conducted.

15

(f)  Applicability of other sections.--The limitations under

16

sections 302, 308 and 704 shall not apply to a Major League

17

Baseball, National Hockey League or National Basketball

18

Association 50/50 raffle.

19

Section 4.  SectionS 306 AND 307(b.1), (d) and (h) of the

20

act, renumbered and amended February 2, 2012 (P.L.7, No.2), ARE

21

amended to read:

22

Section 306.  Regulations of department.

23

(a)  Authorization.--The department shall promulgate

24

regulations to:

25

(1)  Impose minimum standards and restrictions applicable

26

to games of chance manufactured for sale in this

27

Commonwealth, which may include standards and restrictions

28

which specify the maximum number of chances available to be

29

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

30

standards and restrictions as the department deems necessary

- 78 -

 


1

for the purposes of this chapter. The department shall

2

consider standards adopted by the National Association of

3

Gambling Regulatory Agencies and other standards commonly

4

accepted in the industry.

5

(2)  Establish procedures by which manufacturers may

6

register and distributors of games of chance may apply for

7

licensure on forms which the department shall provide.

8

Procedures shall include a requirement that manufacturer and

9

distributor applicants provide criminal history record

10

information obtained from the Pennsylvania State Police under

11

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

12

each officer and manager of the manufacturer's or

13

distributor's organization and for any other individual

14

specified by the department. As used in this paragraph, the

15

term "criminal history record information" has the meaning

16

given in 18 Pa.C.S. § 9102 (relating to definitions).

17

(3)  Provide for the suspension or revocation of

18

distribution licenses or manufacturer certificates for

19

violations of this act or regulations of the department.

20

(4)  Carry out other provisions of this act.

21

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

22

shall not be construed to authorize the department to promulgate

23

regulations providing for recordkeeping requirements for

24

licensed eligible organizations which require unreasonable or

25

unnecessary information or a repetitious listing of information.

26

The department shall strive to keep such recordkeeping

27

requirements from being an undue hardship or burden on licensed 

28

eligible organizations. Except as provided under section 701(b), 

29

the department may not require the retention of records for a

30

period in excess of two years.

- 79 -

 


1

(c)  Reporting requirements.--Each eligible organization

2

which has proceeds in excess of $2,500 in a single calendar year 

3

shall submit an annual report to the department including:

4

(1)  Prizes awarded as required under section 335 of the

5

act of March 4, 1971 (P.L.6, No.2), known as the Tax Reform

6

Code of 1971.

7

(2)  Amounts expended for public interest purposes.

8

Section 307.  Licensing of eligible organizations to conduct

9

games of chance.

10

* * *

11

(b.1)  Location of games of chance.--

12

(1)  [Every] Except as otherwise provided in this