1Amending the act of December 19, 1988 (P.L.1262, No.156),
2entitled, as amended, "An act providing for the licensing of
3eligible organizations to conduct games of chance, for the
4licensing of persons to distribute games of chance, for the
5registration of manufacturers of games of chance, and for
6suspensions and revocations of licenses and permits;
7requiring records; providing for local referendum by
8electorate; and prescribing penalties," in preliminary
9provisions, further providing for definitions and providing
10for relationship to table games; in games of chance, further
11providing for games of chance permitted, for prize limits,
12for regulations of the Department of Revenue and for
13licensing of eligible organizations to conduct games of
14chance; in club licensees, further providing for reports by a
15club licensee and for distribution of proceeds; in
16enforcement, further providing for <-revocation of licenses and 
17for enforcement by the Bureau of Liquor Control Enforcement;
18and abrogating regulations.

19The General Assembly of the Commonwealth of Pennsylvania
20hereby enacts as follows:

21Section 1. The definitions of "games of chance" and "public
22interest purpose" in section 103 of the act of December 19, 1988

1(P.L.1262, No.156), known as the Local Option Small Games of
2Chance Act, amended February 2, 2012 (P.L.7, No.2), are amended
3and the section is amended by adding definitions to read:

4Section 103. Definitions.

5The following words and phrases when used in this act shall
6have the meanings given to them in this section unless the
7context clearly indicates otherwise:

8* * *

9"A night at the races." A game in which a participant places
10a wager on a prerecorded horse race.

11* * *

12"Coin auction." A game in which a participant buys a
13numbered paddle for a chance to bid on a donated prize with the
14winner determined by a random drawing of corresponding numbers.

15 * * *

16"Games of chance." Punchboards, daily drawings, weekly 
17drawings, 50/50 drawings, raffles, selective raffles, <-poker 
18runs, coin auctions, a night at the races, Texas Hold'em card 
19tournament, vertical wheel game and pull-tabs, as defined in 
20this act, provided that no such game shall be played by or with 
21the assistance of any mechanical or electrical devices or media 
22other than a dispensing machine or passive selection device and 
23further provided that the particular chance taken by any person 
24in any such game shall not be made contingent upon any other 
25occurrence or the winning of any other contest, but shall be 
26determined solely at the discretion of the purchaser. This 
27definition shall not be construed to authorize any other form of 
28gambling currently prohibited under any provision of Title 18 of 
29the Pennsylvania Consolidated Statutes (relating to crimes and 
30offenses) or authorized under 4 Pa.C.S. (relating to 

1amusements). Nothing in this act shall be construed to authorize 
2games commonly known as "slot machines" or "video poker."

3* * *

<-4"Poker run." A game in which all of the following occur:

5(1) Participants meet at an eligible organization's
6licensed premises to receive instructions for the event.

7(2) Each participant receives a detailed explanation of
8the game destinations and a score card which will be
9completed as they progress to each destination.

10(3) At each designated stop on the run route, the
11participant draws or is dealt a card at random. The card
12which is drawn or dealt is recorded on the participant's
13score card.

14(4) A winner is determined as the participant which
15makes the best five-card poker hand at the end of the event.

16* * *

17"Public interest purpose." One or more of the following:

18(1) The activities and operations of a nonprofit 
19benevolent, religious, educational, philanthropic, humane, 
20scientific, patriotic, social welfare, social advocacy, 
21public health, public safety, emergency response, 
22environmental or civic objective.

23(2) Initiating, performing or fostering worthy public
24works or enabling or furthering the erection or maintenance
25of public structures.

26(3) Lessening the burdens borne by government or
27voluntarily supporting, augmenting or supplementing services
28which government would normally render to the people.

29(4) Improving, expanding, maintaining or repairing real
30property owned or leased by an eligible organization and

1relating operational expenses used for purposes specified in
2paragraphs (1), (2) and (3).

3The term does not include the erection or acquisition of any
4real property, unless the property will be used [exclusively]
5for one or more of the purposes specified in this definition.

6* * *

7"Selective raffle." A game in which all of the following
8occur:

9(1) The participant buys a ticket or tickets for a
10chance to win a donated prize.

11(2) The participant places the ticket or tickets in a
12designated location for the prize which the participant would
13like to win.

14(3) The winner for each prize is determined by a random
15drawing of tickets with a corresponding number for the prize.

16"Texas Hold'em card tournament." A community card game where
17each player may use any combination of five community cards and
18the player's own two hole cards to make a five-card poker hand.

19"Vertical wheel game." A game in which a participant places
20a coin or token on a color, number or word or purchases a ticket
21containing a color, number or word and watches a spinning
22vertical wheel until the pointer of the wheel rests on a section
23of the wheel designating a winner.

24* * *

25Section 2. The act is amended by adding a section to read:

26Section 104. Relationship to table games.

27A vertical wheel game or a Texas Hold'em card tournament is
28not a "table game" as defined in 4 Pa.C.S. § 1103 (relating to
29definitions). The designation of a vertical wheel game and Texas
30Hold'em card tournament under this act does not preclude the

1authorization of a vertical wheel game or a Texas Hold'em card
2tournament as a table game under 4 Pa.C.S. Pt. II (relating to
3gaming).

4Section 3. Section 301 of the act, amended October 24, 2012
5(P.L.1462, No.184), is amended to read:

6Section 301. Games of chance permitted.

7Every eligible organization to which a license has been 
8issued under the provisions of this chapter may conduct games of 
9chance for the purpose of raising funds for public interest 
10purposes. Except as provided in Chapter 5, all proceeds of a 
11licensed eligible organization shall be used exclusively for 
12public interest purposes, for the purchase of games of chance, 
13for the payment of the license fee or for the payment of the fee 
14for background checks, as required by this act. An eligible 
15organization, except a club licensee, may use <-its proceeds from 
16games of chance to fulfill its <-the proceeds received from games 
17of chance conducted by the eligible organization to fulfill the 
18organization's own public interest purpose.

19Section 4. Section 302 of the act is amended by adding a
20subsection to read:

21Section 302. Prize limits.

22* * *

23(e.1) Texas Hold'em requirements.--A licensed eligible
24organization shall charge an entry fee of not more than $10 per
25person to play in a Texas Hold'em tournament. The licensed
26eligible organization shall pay out prizes to no more than the
27top five winning persons in a declining manner based on the
28player's final placement in the tournament. The prize pool shall
29consist solely of entry fees collected.

30* * *

1Section 5. Section 306(b) and (c) of the act, amended
2October 24, 2012 (P.L.1462, No.184), are amended and the section
3is amended by adding subsections to read:

4Section 306. Regulations of department.

5* * *

6(a.1.) Review.--The department shall, on an annual basis,
7review this act and regulations promulgated under this act to
8determine if regulations relating to games of chance require
9revision. If the department determines that the regulations need
10modification, the department may promulgate such regulations
11within 60 days of its review.

12(a.2) Expansion.--The department may authorize any
13additional games of chance for eligible organizations, except
14for club licensees, and promulgate regulations it deems
15necessary for such additional games of chance. The department
16may consult with law enforcement officials responsible for
17enforcement of this act prior to authorizing any additional
18games of chance. Additional games of chance shall not include
19any games that require Internet access for play.

20(b) Limitation on recordkeeping requirements.--This section
21shall not be construed to authorize the department to promulgate
22regulations providing for recordkeeping requirements for
23licensed eligible organizations which require unreasonable or
24unnecessary information or a repetitious listing of information.
25The department shall strive to keep such recordkeeping
26requirements from being an undue hardship or burden on licensed
27eligible organizations. For individual prizes <-in excess of $600 
<-28or more, records shall include the name and address of the 
29winner. An eligible organization shall not obtain or retain 
30receipts of prizes that are donated. An eligible organization 

1shall provide each winner with a receipt of the value of the 
2prize won, unless the prize is cash. Except as provided under 
3section 701(b), the department may not require the retention of
4records for a period in excess of two years.

5(c) Reporting requirements.--[Each eligible organization
6which has proceeds in excess of $2,500 in a calendar year shall
7submit an annual report to the department including:] Except for 
8an organization licensed under section 307(b)(1)(i), each 
9eligible organization shall submit an annual report to the 
10department for the 12-month period commencing upon the 
11anniversary of the date the license was issued. The form for the 
12report shall be available in <-a paper form hard copy from the 
13licensing authority and <-electronically from the department's 
14Internet website. The report may be <-filed submitted by mail to 
15the department or <-by through the department's Internet website. 
16The report shall include the following:

17(1) Prizes awarded as required under section 335 of the
18act of March 4, 1971 (P.L.6, No.2), known as the Tax Reform
19Code of 1971.

20(2) Amounts expended for public interest purposes.

21Section 6. Section 307(a), (b), (b.1), (b.2), (b.3), (d.1)
22and (h) of the act, amended February 2, 2012 (P.L.7, No.2) and
23October 24, 2012 (P.L.1462, No.184), are amended and subsection
24(b.1) is amended by adding a paragraph to read:

25Section 307. Licensing of eligible organizations to conduct
26games of chance.

27(a) License required.--No eligible organization shall
28conduct or operate any games of chance unless such eligible
29organization has obtained and maintains a valid license [or 
30limited occasion license] issued pursuant to this section. An 

1auxiliary group of a licensed eligible organization shall be
2eligible to conduct games of chance using the license issued to
3the eligible organization provided that the auxiliary group [or
4groups are] is listed on the application and license of the
5eligible organization. An auxiliary group is not eligible to 
6obtain a license [or a limited occasion license]. No additional
7licensing fee shall be charged to an eligible organization for
8an auxiliary [group's eligibility under this chapter. Auxiliary
9groups] group of the organization. An auxiliary group shall not
10include branches, lodges or chapters of a Statewide
11organization.

12(b) Issuance and fees.--The following shall apply:

13(1) [The licensing authority shall license, upon
14application, within 30 days any eligible organization] Within 
1530 days of receiving an application <-by from an organization, 
16the licensing authority shall grant a license to an eligible 
17organization meeting the requirements for licensure contained
18in this chapter to conduct and operate games of chance at
19such locations within the county or in such manner as stated
20on the application as limited by subsection (b.1). The
21license fee to be charged to [each] an eligible organization
22shall be [$100, except for limited occasion licenses which
23shall be $10] as follows:

24(i) For an eligible organization making $40,000 or
25less a year in proceeds from games of chance, $25.

26(ii) For an eligible organization making more than 
27$40,000 in proceeds from games of chance, $100.

28(2) Licenses shall be [renewable annually upon] issued 
29for a period of one year and may be renewed on or after the
30anniversary of the date of issue. The license fee shall be 

1used by the licensing authority to administer this act.

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

3(1) Except as otherwise provided in this section, a
4licensed eligible organization[, except a limited occasion
5licensee,] may conduct small games of chance at a licensed
6premises. The licensed premises shall be indicated on the
7eligible organization's license application. [Only one
8license shall be issued per licensed premises. Except as
9provided under paragraph (4), a licensed eligible
10organization may not share a licensed premises with another
11licensed eligible organization; and no licensed eligible
12organization may permit its premises to be used for small
13games of chance by another licensed eligible organization.]

14(2) Where there exists a location or premises which is
15the normal business or operating site of the eligible
16organization and the location or premises is owned or leased
17by that eligible organization to conduct its normal business,
18that site shall be the eligible organization's licensed
19premises. If that location consists of more than one
20building, the eligible organization shall identify the 
21building that will be designated as the licensed premises.

22(2.1) If an An eligible organization <-wishes may request
23approval to conduct games of chance in a different location
24from the location <-of the licensed premise that is listed on
25its the eligible organization's application and license<-, the.
26The eligible organization must submit a written request to
27the district attorney<-. The request must include the change in
28the,<- including the address of the new location and the dates
29and times the games of chance will be operated <-conducted at
30the new location. The district attorney may approve or deny

1the request <-in writing or stipulate additional requirements
2as a condition of approval.

3(3) When an eligible organization does not own or lease
4a specific location to conduct its normal business, the
5eligible organization may use the premise of another eligible 
6organization to conduct games of chance or may make
7arrangements that are consistent with this act to establish a 
8licensed premises, including leasing a premise under a
9written agreement for a rental; however, the rental may not 
10be determined by either the amount of receipts realized from
11the conduct of games of chance or the number of people
12attending. An eligible organization may lease a facility for
13a banquet in connection with the serving of a meal based on a 
14per-head charge. Prior to the use of the premises of another 
15eligible organization to conduct games of chance, an eligible 
16organization must notify, in writing, the district attorney 
17regarding the <-location use of the premise of another eligible 
18organization, including the address of the premise and the 
19dates and times the games of chance will be operated.

20[(3.1) Notwithstanding paragraphs (1), (2) and (3), if
21an eligible organization is unable to conduct games of chance
22at the location listed on its application and license due to
23natural disaster, fire or other circumstance that renders the
24location unusable, the eligible organization may submit a
25written request to the district attorney to conduct games of
26chance in a different location, including the licensed
27premises of another eligible organization. The request must
28include the change in the location and the dates and times
29the games of chance will be operated at the alternative
30location. The district attorney shall establish a limit on

1the duration of the authorization to conduct games of chance
2at the alternative location. Following the expiration of the
3authorization period, the eligible organization must return
4to the location specified in its application and license or
5apply to the licensing authority for a new permanent location
6for the conduct of games of chance. The district attorney may
7approve or deny the request or stipulate additional
8requirements as a condition of approval. If an eligible
9organization permits another eligible organization to use its
10licensed premises to conduct games of chance under this
11paragraph, the eligible organization shall cease its
12operation of games of chance during the time the eligible
13organization utilizing its premises is conducting its games
14of chance] (Reserved).

15(3.2) Notwithstanding paragraphs (1), (2) and (3), the
16following eligible organizations established to raise funds
17shall not be required to conduct a 50/50 drawing or a raffle
18at a licensed premises or to own, lease or establish a
19licensed premises:

20(i) A nonprofit sports team.

21(ii) A primary or secondary school-sponsored club,
22sports team or organization.

23[(4) An eligible organization that has obtained a
24limited occasion license under subsection (b.3) may use
25another eligible organization's licensed premises to conduct
26its games of chance. When a licensed eligible organization is
27permitting a limited occasion licensee to use its licensed
28premises for purposes of games of chance, it shall cease the
29operation of its own games of chance during the period that
30the limited occasion licensee is conducting its games on the

1premises.]

2(5) For purposes of major league sports drawings, the
3facility at which a major league sports team conducts its
4games shall constitute a premises for purposes of this act.

5(b.2) Off-premises games of chance.--Notwithstanding any
6other provisions of this section, all of the following apply:

7(1) A licensed eligible organization may conduct games
8of chance at a location off its premises when the games of 
9chance are part of an annual carnival, fair, picnic or
10banquet held or participated in by that licensed eligible
11organization on a historical basis. The licensed eligible
12organization must notify, in writing, the district attorney
13and licensing authority of the location, date and times of
14the event where it will be conducting games of chance.

15(2) Raffle and 50/50 drawing tickets may be sold off the
16licensed premises in a municipality which has adopted the
17provisions of this act by an affirmative vote in a municipal
18referendum. A licensed eligible organization which plans to
19sell raffle and 50/50 drawing tickets in a municipality
20located in a county other than the county in which the
21eligible organization is licensed shall notify that county's
22district attorney and licensing authority as to the location
23and the dates that the licensed eligible organization plans
24to sell raffle tickets.

25[(b.3) Limited occasion licenses.--Eligible organizations
26which do not own their own premises or which do not lease a
27specific location to conduct their normal business may apply for
28a limited occasion license to conduct games of chance on not
29more than three occasions covering a total of seven days during
30a licensed year. A limited occasion license entitles an eligible

1organization to conduct no more than two raffles during a
2licensed year where prizes may not exceed the established limits
3for regular monthly raffles. Holders of a limited occasion
4license may not apply or be granted any other license or special
5permit under this act. No holder of a regular license or special
6permit under this act shall apply or be granted a limited
7occasion license.]

8* * *

9(d.1) Bank account and records.--The licensed eligible
10organization, except for an organization licensed under 
11subsection (b)(1)(i), shall keep a bank account to hold the
12proceeds of games of chance, which shall be separate from all
13other funds belonging to the licensed eligible organization.
14Account records shall show all expenditures and income and shall
15be retained by the licensed eligible organization for at least
16two years.

17* * *

18(h) Background checks.--Each application for a license
19submitted by an eligible organization [which has proceeds in
20excess of $2,500 in a year] , except for an organization 
21licensed under subsection (b)(1)(i), shall include the results
22of a criminal history record information check obtained from the
23Pennsylvania State Police, as defined in 18 Pa.C.S. § 9102
24(relating to definitions) and permitted by 18 Pa.C.S. § 9121(b)
25(relating to general regulations), for the executive officer and
26[secretary] treasurer of the eligible organization making the
27application for a license or any other person required by the
28department.

29Section 7. Sections 501 and 502 of the act, added February
302, 2012 (P.L.7, No.2), are amended to read:

1Section 501. Club licensee.

2(a) Report.--

3(1) Beginning in 2013, a club licensee shall submit
4semiannual reports to the department for the preceding six-
5month period on a form and in a manner prescribed by the
6department. The form shall be available in <-a paper form hard 
7copy from the licensing authority and <-electronically from the 
8department's Internet website. The report may be <-filed 
9submitted by mail to the department or <-by through the 
10department's Internet website.

11(2) The report must be filed under oath or affirmation
12of an authorized officer of the club licensee.

13(3) The report shall include all of the following
14information:

15(i) The proceeds received by the club licensee from
16each game of chance conducted, itemized by week.

17(ii) The amount of prizes paid from all games of
18chance, itemized by week.

19(iii) Other costs incurred related to the conduct of 
20games of chance.

21(iv) The verification of amounts distributed for 
22public interest purposes itemized under section 
23[502(a)(1)] 502(a)(2)(i), itemized by the recipient.

24(v) An itemized list of expenditures made or amounts 
25retained and expenditures under section [502(a)(2)] 
26502(a)(2)(ii).

27(vi) The address and the county in which the club 
28licensee is located.

29(vii) Other information or documentation required by 
30the department.

1(b) Distribution.--The department shall provide a copy of
2the report to the Bureau of Liquor Control Enforcement.

3(c) Posting.--The reports under subsection (a) shall be
4published on the department's Internet website.

5Section 502. Distribution of proceeds.

6(a) Distribution.--The proceeds from games of chance
7received by a club licensee shall be distributed as follows:

8[(1) No less than 70% of the proceeds shall be paid to
9organizations for public interest purposes in the calendar
10year in which the proceeds were obtained.

11(2) No more than 30% of the proceeds obtained in a
12calendar year may be retained by a club licensee and used for
13the following operational expenses relating to the club
14licensee:

15(i) Real property taxes.

16(ii) Utility and fuel costs.

17(iii) Heating and air conditioning equipment or
18repair costs.

19(iv) Water and sewer costs.

20(v) Property or liability insurance costs.

21(vi) Mortgage payments.

22(vii) Interior and exterior repair costs, including
23repair to parking lots.

24(viii) New facility construction costs.

25(ix) Entertainment equipment, including television,
26video and electronic games.

27(x) Other expenses adopted in regulation by the
28department.]

29(1) $40,000 may be retained by the club licensee. There
30are no restrictions on the use of these proceeds by the club

1licensee.

2(2) Any club licensee proceeds remaining after
3distribution under paragraph (1) shall be distributed as
4follows:

5(i) No less than 70% of the proceeds shall be paid
6to organizations for public interest purposes in the
7calendar year in which the proceeds were obtained.

8(ii) No more than 30% of the proceeds obtained in a
9calendar year may be retained by a club licensee and used
10for the following operational expenses relating to the
11club licensee:

12(A) Real property taxes.

13(B) Utility and fuel costs.

14(C) Heating and air conditioning equipment or
15repair costs.

16(D) Water and sewer costs.

17(E) Property or liability insurance costs.

18(F) Mortgage payments.

19(G) Interior and exterior repair costs,
20including repair to parking lots.

21(H) New facility construction costs.

22(I) Entertainment equipment, including
23television, video and electronic games.

24(J) Other expenses adopted in regulation by the
25department.

26(a.1) Amounts retained.--Amounts retained by a club licensee
27under subsection (a)(2) shall be expended within [the same
28calendar year] a 12-month period from when the proceeds were 
29received unless the club licensee notifies the department that
30funds are being retained for a substantial purchase or project.

1Notification shall include a description of the purchase or
2project, the cost and the anticipated date of the purchase or
3project.

4(b) Prohibition.--

5(1) Proceeds shall not be used for wages, alcohol or
6food purchases or for the payment of any fine levied against
7the club licensee.

8(2) An officer or employee of a club licensee who
9operates the game of chance shall not participate in the
10game. This paragraph shall not apply to a raffle.

<-11Section 8. Section 701(b) of the act, amended February 2,
122012 (P.L.7, No.2), is amended to read:

13Section 701. Revocation of licenses.

14* * *

15(b) Production of records.--The district attorney may
16require licensees to produce their books, accounts and records
17relating to the conduct of games of chance in order to determine
18if a violation of this act has occurred. Licensees shall also be
19required, upon request, to provide their license, books,
20accounts and records relating to the conduct of games of chance
21to the licensing authority, the Bureau of Liquor Control
22Enforcement or to a law enforcement agency or official. A club
23licensee shall retain records for a period of [five] two years.

24Section <-8 9. Section 702(b) of the act, amended October 24,
252012 (P.L.1462, No.184), is amended to read:

26Section 702. Enforcement.

27* * *

28(b) Bureau of Liquor Control Enforcement.--The following 
29shall apply to enforcement:

30(1) If the licensee is a club licensee, the Bureau of Liquor 

1Control Enforcement may enforce the provisions of this act in 
2accordance with subsection (g). An administrative law judge 
3under section 212 of the act of April 12, 1951 (P.L.90, No.21), 
4known as the Liquor Code, may impose the penalties under 
5subsection (d) following the issuance of a citation by the 
6bureau.

7(2) The Bureau of Liquor Control Enforcement shall have no
8jurisdiction to enforce the provisions of this act on any
9special occasion permit holder under section 408.4 of the act of
10April 12, 1951 (P.L.90, No.21), known as the Liquor Code. The
11Bureau of Liquor Control Enforcement shall retain all powers and
12duties to enforce the provisions of the Liquor Code on a special
13occasion permit holder.

14* * *

15Section <-9 10. The provisions of 61 Pa. Code §§ 901.463(4)
16(relating to raffle records), 901.464(9) (relating to punchboard
17and pull-tab records), 901.464a(9) (relating to daily and weekly
18drawing records), 901.466(1) (relating to prize records) and
19901.733(f) (relating to control of prizes) are abrogated.

20Section <-10 11. This act shall take effect immediately.