AN ACT

 

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; in games of 
10chance, further providing for games of chance permitted, for 
11prize limits, for regulations of the Department of Revenue 
12and for licensing of eligible organizations to conduct games 
13of chance; in club licensees, further providing for reports 
14by a club licensee and for distribution of proceeds; in 
15enforcement, further providing for revocation of licenses and 
16for enforcement by the Bureau of Liquor Control Enforcement; 
17providing for social card games; and abrogating regulations. 
<-18further providing for the definitions of "daily drawing," 
19"games of chance," "raffle," "public interest purpose" and 
20"weekly drawing"; providing for the definitions of "auxiliary 
21group," "conservation organization" and "race night game"; 
22further providing for games of chance permitted, for prize 
23limits, for limited sales, for distributor licenses, for 
24regulations of department and for licensing of eligible
 

1organizations to conduct games of chance.

<-2further providing for definitions and for games of chance
3permitted; providing for prohibition regarding pools; further
4providing for prize limits and for limited sales; providing
5for raffle sales; further providing for distributor licenses,
6for registration of manufacturers, for regulations of
7department, for licensing of eligible organizations to
8conduct games of chance, for special permits, for revocation
9of licenses and for enforcement; and providing for pool
10selling.

11The General Assembly of the Commonwealth of Pennsylvania
12hereby enacts as follows:

<-13Section 1. The definitions of "games of chance," "public
14interest purpose" and "raffle" in section 103 of the act of
15December 19, 1988 (P.L.1262, No.156), known as the Local Option
16Small Games of Chance Act, amended February 2, 2012 (P.L.7,
17No.2) and October 24, 2012 (P.L.1462, No.184), are amended and
18the section is amended by adding definitions to read:

19Section 103. Definitions.

20The following words and phrases when used in this act shall
21have the meanings given to them in this section unless the
22context clearly indicates otherwise:

23* * *

24"Coin auction." A game in which a participant buys a
25numbered paddle for a chance to bid on a donated prize with the
26winner determined by a random drawing of corresponding numbers.

27 * * *

28"Games of chance." Punchboards, daily drawings, weekly
29drawings, 50/50 drawings, raffles, selective raffles, poker
30runs, coin auctions, race night games, vertical wheel game and
31pull-tabs, as defined in this act, provided that no such game,
32except for a vertical wheel game, shall be played by or with the
33assistance of any mechanical or electrical devices or media
34other than a dispensing machine or passive selection device and
35further provided that the particular chance taken by any person

1in any such game shall not be made contingent upon any other
2occurrence or the winning of any other contest, but shall be
3determined solely at the discretion of the purchaser. This
4definition shall not be construed to authorize any other form of
5gambling currently prohibited under any provision of Title 18 of
6the Pennsylvania Consolidated Statutes (relating to crimes and
7offenses) or authorized under 4 Pa.C.S. (relating to
8amusements). Nothing in this act shall be construed to authorize
9games commonly known as "slot machines" or "video poker."

10* * *

11"Poker run." A game in which all of the following occur:

12(1) Participants meet at a designated location to
13receive instructions for the event.

14(2) Each participant receives a detailed explanation of
15the game destinations and a score card which will be
16completed as they progress to each destination.

17(3) At each designated stop on the run route, the
18participant draws or is dealt a card at random. The card
19which is drawn or dealt is recorded on the participant's
20score card.

21(4) A winner is determined as the participant which
22makes the highest poker hand at the end of the event.

23* * *

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

25(1) [The activities and operations of a nonprofit]
26Providing benevolent, religious, educational, philanthropic,
27humane, scientific, patriotic, social welfare, social
28advocacy, public health, public safety, emergency response,
29environmental [or civic objective], historic preservation,
30conservation, athletic, sportsman's safety and education or

1civic services or benefits.

2(2) Initiating, performing or fostering worthy public
3works or enabling or furthering the erection or maintenance
4of public structures.

5(3) Lessening the burdens borne by government or
6voluntarily supporting, augmenting or supplementing services
7which government would normally render to the people.

8(4) Improving, expanding, maintaining or repairing real
9property owned or leased by an eligible organization and
10relating operational expenses used for purposes specified in
11paragraphs (1), (2) and (3).

12The term does not include the erection or acquisition of any
13real property, unless the property will be used [exclusively]
14for one or more of the purposes specified in this definition.

15* * *

16"Race night game." A game in which a participant places a
17wager on a prerecorded horse race.

18"Raffle." A game of chance in which a participant buys a
19ticket for a chance at a prize with the winner determined by a
20random drawing of corresponding ticket stubs to take place at a
21location and date or dates printed upon each ticket. Such games
22of chance shall include lotteries but not daily drawings. Raffle
23winners may be determined by reference to drawings conducted by
24the department pursuant to the act of August 26, 1971 (P.L.351,
25No.91), known as the State Lottery Law. The term includes a
26reverse raffle.

27* * *

28"Selective raffle." A game in which all of the following
29occur:

30(1) The participant buys a ticket or tickets for a

1chance to win a donated prize.

2(2) The participant places the ticket or tickets in a
3designated location for the prize which the participant would
4like to win.

5(3) The winner for each prize is determined by a random
6drawing of tickets with a corresponding number for the prize.

7"Vertical wheel game." A game in which a participant places
8a coin or token on a color, number or word or purchases a ticket
9containing a color, number or word and watches a spinning
10vertical wheel until the pointer of the wheel rests on a section
11of the wheel designating a winner.

12* * *

13Section 2. Section 301 of the act, amended October 24, 2012
14(P.L.1462, No.184), is amended to read:

15Section 301. Games of chance permitted.

16(a) General rule.--Every eligible organization to which a
17license has been issued under the provisions of this chapter may
18conduct games of chance for the purpose of raising funds for
19public interest purposes. Except as provided in Chapter 5, all
20proceeds of a licensed eligible organization shall be used
21exclusively for public interest purposes, for the purchase of
22games of chance, for the payment of the license fee or for the
23payment of the fee for background checks, as required by this
24act. An eligible organization, except a club licensee, may use
25the proceeds received from games of chance conducted by the
26eligible organization to fulfill the public interest purpose of
27the eligible organization.

28(b) Relationship to table games.--A vertical wheel game is
29not a "table game" as defined in 4 Pa.C.S. § 1103 (relating to
30definitions). The designation of a vertical wheel game under

1this act does not preclude the authorization of a vertical wheel
2game as a table game under 4 Pa.C.S. Pt. II (relating to
3gaming).

4Section 3. Section 302 of the act, amended February 2, 2012
5(P.L.7, No.2), is amended to read:

6Section 302. Prize limits.

7(a) Individual prize limit.--Except as provided under
8subsections (d) and (d.1), the maximum prize which may be
9awarded for any single chance shall be $1,000.

10(b) Aggregate prize limit.--No more than [$25,000] $35,000
11in prizes shall be awarded from games of chance by a licensed
12eligible organization in any seven-day period.

13(c) Raffle prize limit.--Up to $10,000 in prizes may be
14awarded in raffles in any calendar month.

15(c.1) Total limit.--All prizes awarded under this section
16shall be subject to the aggregate prize limits under subsection
17(b).

18(d) Exception for raffles.--Notwithstanding subsection (b)
19or (c), a licensed eligible organization may conduct a raffle
20and award a prize or prizes valued in excess of $1,000 each only
21under the following conditions:

22(1) The licensing authority has issued a special permit
23for the raffle under section 308.

24(2) A licensed eligible organization shall be eligible
25to receive no more than eight special permits in any licensed
26term except that a volunteer fire, ambulance or rescue
27organization that is not a club licensee shall be eligible to
28receive ten special permits in any licensed term.

29(3) Only one raffle may be conducted under each special
30permit issued under section 308.

1(4) Except as provided under subsection (d.1), the total
2of all prizes awarded under this subsection shall be no more
3than $100,000 per calendar year.

4(d.1) Additional award.--A volunteer fire, ambulance or
5rescue organization may, in addition to the total under
6subsection (d)(4), award up to $50,000 from raffles which shall
7not be subject to the aggregate limit under subsection (b), (c)
8or (d).

9(f) Daily drawing carryover.--The prize limitation contained
10in subsections (a) and (b) may be exceeded by a daily drawing
11under the following circumstances: a daily drawing may award a
12prize in excess of $1,000 if such prize is the result of a
13carryover of a drawing which resulted from the winning number in
14such drawing not being among the eligible entrants in such
15drawings. Nothing contained herein shall authorize the prize
16limitation as contained in subsections (a) and (b) to be
17exceeded as a result of a failure to conduct a drawing on an
18operating day during which chances were sold for a daily drawing
19or for a daily drawing for which chances were sold in excess of
20$1 or for which more than one chance was sold to an eligible
21participant.

22(g) Additional exception.--When a daily drawing or weekly
23drawing is set up or conducted in such a manner as to pay out or
24award 100% of the gross revenues generated from such drawing,
25the limitation contained in subsection (b) shall not apply.

26(h) Weekly drawing carryover exception.--Weekly drawings
27shall be governed by the prize limitation contained in
28subsection (b). The prize limitation contained in subsection (b)
29may be exceeded by a weekly drawing under the following
30circumstances: a weekly drawing may award a prize where the cash

1value is in excess of [$25,000] $35,000 if such prize is the
2result of a carryover of a drawing or drawings which resulted
3from the winning number or numbers in such drawing or drawings
4not being among the eligible entrants in such drawings. Nothing
5contained in this chapter shall authorize the prize limitation
6under subsection (b) to be exceeded as a result of a failure to
7conduct a drawing for a week during which chances were sold for
8a weekly drawing or for a weekly drawing for which chances were
9sold in excess of $1.

10Section 4. Section 306(b) and (c) of the act, amended
11October 24, 2012 (P.L.1462, No.184), are amended and the section
12is amended by adding subsections to read:

13Section 306. Regulations of department.

14* * *

15(a.1) Review.--The department shall, on an annual basis,
16review the regulations adopted under this act to determine if
17the regulations relating to games of chance require revision or 
18abrogation. The department shall submit a report to the General 
19Assembly by March 1, 2015, and every two years thereafter. The 
20report shall include recommendations for changes to this act or 
21to regulations adopted under this act, if any, including 
22recommendations for additional games of chance. The 
23recommendations for additional games of chance shall not include 
24any game regulated by the Pennsylvania Gaming Control Board 
25under 4 Pa.C.S. (relating to amusements), keno games or any game 
26that requires Internet access to play. The report shall be 
27submitted to the Majority Leader and Minority Leader of the 
28Senate, the Majority Leader and Minority Leader of the House of 
29Representatives and the chairperson and minority chairperson of 
30the standing committees of the Senate and the chairperson and
 

1minority chairperson of the standing committees of the House of 
2Representatives with jurisdiction over this act.

3(b) Limitation on recordkeeping requirements.--This section
4shall not be construed to authorize the department to promulgate
5regulations providing for recordkeeping requirements for
6licensed eligible organizations which require unreasonable or
7unnecessary information or a repetitious listing of information.
8The department shall strive to keep such recordkeeping
9requirements from being an undue hardship or burden on licensed
10eligible organizations. For individual prizes of $600 or more,
11records shall include the name and address of the winner. An
12eligible organization shall not obtain or retain receipts of
13prizes that are donated. An eligible organization shall provide
14each winner with a receipt of the value of the prize won of $600
15or more, unless the prize is cash. Except as provided under
16section 701(b), the department may not require the retention of
17records for a period in excess of two years.

18(c) Reporting requirements.--[Each eligible organization
19which has proceeds in excess of $2,500 in a calendar year shall
20submit an annual report to the department including:] Except for
21an organization licensed under section 307(b)(1)(i), each
22eligible organization shall submit an annual report to the
23department for the 12-month period commencing upon the
24anniversary of the date the license was issued. The form for the
25report shall be available in hard copy and electronically from
26the department's Internet website. The report may be submitted
27by mail to the department or through the department's Internet
28website. The report shall include the following:

29(1) Prizes awarded as required under section 335 of the
30act of March 4, 1971 (P.L.6, No.2), known as the Tax Reform

1Code of 1971.

2(2) Amounts expended for public interest purposes.

3Section 5. Section 307(a), (b), (b.1), (b.2), (b.3), (d.1)
4and (h) of the act, amended February 2, 2012 (P.L.7, No.2) and
5October 24, 2012 (P.L.1462, No.184), are amended and subsection
6(b.1) is amended by adding a paragraph to read:

7Section 307. Licensing of eligible organizations to conduct
8games of chance.

9(a) License required.--No eligible organization shall
10conduct or operate any games of chance unless such eligible
11organization has obtained and maintains a valid license [or
12limited occasion license] issued pursuant to this section. An
13auxiliary group of a licensed eligible organization shall be
14eligible to conduct games of chance using the license issued to
15the eligible organization provided that the auxiliary group [or
16groups are] is listed on the application and license of the
17eligible organization. An auxiliary group is not eligible to
18obtain a license [or a limited occasion license]. No additional
19licensing fee shall be charged to an eligible organization for
20an auxiliary [group's eligibility under this chapter. Auxiliary
21groups] group of the organization. An auxiliary group shall not
22include branches, lodges or chapters of a Statewide
23organization.

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

25(1) [The licensing authority shall license, upon
26application, within 30 days any eligible organization] Within
2730 days of receiving an application from an organization, the
28licensing authority shall grant a license to an eligible
29organization meeting the requirements for licensure contained
30in this chapter to conduct and operate games of chance at

1such locations within the county or in such manner as stated
2on the application as limited by subsection (b.1). The
3license fee to be charged to [each] an eligible organization
4shall be [$100, except for limited occasion licenses which
5shall be $10] as follows:

6(i) For an eligible organization making $40,000 or
7less in proceeds from games of chance in the preceding
8calendar year, $25.

9(ii) For an eligible organization making more than
10$40,000 in proceeds from games of chance in the preceding
11calendar year, $100.

12(2) Licenses shall be [renewable annually upon] issued
13for a period of one year and may be renewed on or after the
14anniversary of the date of issue. The license fee shall be
15used by the licensing authority to administer this act.

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

17(1) Except as otherwise provided in this section, a
18licensed eligible organization[, except a limited occasion
19licensee,] may conduct small games of chance at a licensed
20premises. The licensed premises shall be indicated on the
21eligible organization's license application. [Only one
22license shall be issued per licensed premises. Except as
23provided under paragraph (4), a licensed eligible
24organization may not share a licensed premises with another
25licensed eligible organization; and no licensed eligible
26organization may permit its premises to be used for small
27games of chance by another licensed eligible organization.]

28(2) Where there exists a location or premises which is
29the normal business or operating site of the eligible
30organization and the location or premises is owned or leased

1by that eligible organization to conduct its normal business,
2that site shall be the eligible organization's licensed
3premises. If that location consists of more than one
4building, the eligible organization shall identify the
5building that will be designated as the licensed premises.

6(2.1) An eligible organization must notify the district
7attorney to conduct games of chance in a different location
8from the location of the licensed premise that is listed on
9the eligible organization's application and license. The
10notification must include the address of the new location and
11the dates and times the games of chance will be conducted at
12the new location.

13(3) When an eligible organization does not own or lease
14a specific location to conduct its normal business, the
15eligible organization may use the premise of another eligible
16organization to conduct games of chance or may make
17arrangements that are consistent with this act to establish a
18licensed premises, including leasing a premise under a
19written agreement for a rental; however, the rental may not
20be determined by either the amount of receipts realized from
21the conduct of games of chance or the number of people
22attending. An eligible organization may lease a facility for
23a banquet in connection with the serving of a meal based on a
24per-head charge. Prior to the use of the premises of another
25eligible organization to conduct games of chance, an eligible
26organization must notify the district attorney regarding the
27use of the premise of another eligible organization,
28including the address of the premise and the dates and times
29the games of chance will be operated.

30[(3.1) Notwithstanding paragraphs (1), (2) and (3), if

1an eligible organization is unable to conduct games of chance
2at the location listed on its application and license due to
3natural disaster, fire or other circumstance that renders the
4location unusable, the eligible organization may submit a
5written request to the district attorney to conduct games of
6chance in a different location, including the licensed
7premises of another eligible organization. The request must
8include the change in the location and the dates and times
9the games of chance will be operated at the alternative
10location. The district attorney shall establish a limit on
11the duration of the authorization to conduct games of chance
12at the alternative location. Following the expiration of the
13authorization period, the eligible organization must return
14to the location specified in its application and license or
15apply to the licensing authority for a new permanent location
16for the conduct of games of chance. The district attorney may
17approve or deny the request or stipulate additional
18requirements as a condition of approval. If an eligible
19organization permits another eligible organization to use its
20licensed premises to conduct games of chance under this
21paragraph, the eligible organization shall cease its
22operation of games of chance during the time the eligible
23organization utilizing its premises is conducting its games
24of chance] (Reserved).

25(3.2) Notwithstanding paragraphs (1), (2) and (3), the
26following eligible organizations established to raise funds
27shall not be required to conduct a 50/50 drawing or a raffle
28at a licensed premises or to own, lease or establish a
29licensed premises:

30(i) A nonprofit sports team.

1(ii) A primary or secondary school-sponsored club,
2sports team or organization.

3[(4) An eligible organization that has obtained a
4limited occasion license under subsection (b.3) may use
5another eligible organization's licensed premises to conduct
6its games of chance. When a licensed eligible organization is
7permitting a limited occasion licensee to use its licensed
8premises for purposes of games of chance, it shall cease the
9operation of its own games of chance during the period that
10the limited occasion licensee is conducting its games on the
11premises.]

12(5) For purposes of major league sports drawings, the
13facility at which a major league sports team conducts its
14games shall constitute a premises for purposes of this act.

15(b.2) Off-premises games of chance.--Notwithstanding any
16other provisions of this section, all of the following apply:

17(1) A licensed eligible organization may conduct games
18of chance at a location off its premises when the games of
19chance are part of an annual carnival, fair, picnic or
20banquet held or participated in by that licensed eligible
21organization on a historical basis. The licensed eligible
22organization must notify, in writing, the district attorney
23and licensing authority of the location, date and times of
24the event where it will be conducting games of chance.

25(2) Raffle and 50/50 drawing tickets may be sold off the
26licensed premises in a municipality which has adopted the
27provisions of this act by an affirmative vote in a municipal
28referendum. [A licensed eligible organization which plans to
29sell raffle tickets in a municipality located in a county
30other than the county in which the eligible organization is

1licensed shall notify that county's district attorney and
2licensing authority as to the location and the dates that the
3licensed eligible organization plans to sell raffle tickets.]

4[(b.3) Limited occasion licenses.--Eligible organizations
5which do not own their own premises or which do not lease a
6specific location to conduct their normal business may apply for
7a limited occasion license to conduct games of chance on not
8more than three occasions covering a total of seven days during
9a licensed year. A limited occasion license entitles an eligible
10organization to conduct no more than two raffles during a
11licensed year where prizes may not exceed the established limits
12for regular monthly raffles. Holders of a limited occasion
13license may not apply or be granted any other license or special
14permit under this act. No holder of a regular license or special
15permit under this act shall apply or be granted a limited
16occasion license.]

17* * *

18(d.1) Bank account and records.--The licensed eligible
19organization, except for an organization licensed under
20subsection (b)(1)(i), shall keep a bank account to hold the
21proceeds of games of chance, which shall be separate from all
22other funds belonging to the licensed eligible organization.
23Account records shall show all expenditures and income and shall
24be retained by the licensed eligible organization for at least
25two years.

26* * *

27(h) Background checks.--Each application for a license
28submitted by an eligible organization [which has proceeds in
29excess of $2,500 in a year] , except for an organization
30licensed under subsection (b)(1)(i), shall include the results

1of a criminal history record information check obtained from the
2Pennsylvania State Police, as defined in 18 Pa.C.S. § 9102
3(relating to definitions) and permitted by 18 Pa.C.S. § 9121(b)
4(relating to general regulations), for the executive officer and
5[secretary] treasurer of the eligible organization making the
6application for a license or any other person required by the
7department.

8Section 6. Sections 501 and 502 of the act, added February
92, 2012 (P.L.7, No.2), are amended to read:

10Section 501. Club licensee.

11(a) Report.--

12(1) Beginning in 2013, a club licensee shall submit
13semiannual reports to the department for the preceding six-
14month period on a form and in a manner prescribed by the
15department. The form shall be available in hard copy and
16electronically from the department's Internet website. The
17report may be submitted by mail to the department or through
18the department's Internet website.

19(2) The report must be filed under oath or affirmation
20of an authorized officer of the club licensee.

21(3) The report shall include all of the following
22information:

23(i) The proceeds received by the club licensee from
24each game of chance conducted, itemized by week.

25(ii) The amount of prizes paid from all games of
26chance, itemized by week.

27(iii) Other costs incurred related to the conduct of
28games of chance.

29(iv) The verification of amounts distributed for
30public interest purposes itemized under section

1[502(a)(1)] 502(a)(2)(i), itemized by the recipient.

2(v) An itemized list of expenditures made or amounts
3retained and expenditures under section [502(a)(2)]
4502(a)(2)(ii).

5(vi) The address and the county in which the club
6licensee is located.

7(vii) Other information or documentation required by
8the department.

9(b) Distribution.--The department shall provide a copy of
10the report to the Bureau of Liquor Control Enforcement.

11(c) Posting.--The reports under subsection (a) shall be
12published on the department's Internet website.

13Section 502. Distribution of proceeds.

14(a) Distribution.--The proceeds from games of chance
15received by a club licensee shall be distributed as follows:

16[(1) No less than 70% of the proceeds shall be paid to
17organizations for public interest purposes in the calendar
18year in which the proceeds were obtained.

19(2) No more than 30% of the proceeds obtained in a
20calendar year may be retained by a club licensee and used for
21the following operational expenses relating to the club
22licensee:

23(i) Real property taxes.

24(ii) Utility and fuel costs.

25(iii) Heating and air conditioning equipment or
26repair costs.

27(iv) Water and sewer costs.

28(v) Property or liability insurance costs.

29(vi) Mortgage payments.

30(vii) Interior and exterior repair costs, including

1repair to parking lots.

2(viii) New facility construction costs.

3(ix) Entertainment equipment, including television,
4video and electronic games.

5(x) Other expenses adopted in regulation by the
6department.]

7(1) $40,000 may be retained by the club licensee. Except 
8as prohibited by subsection (b)(1), there are no additional
9restrictions on the use of these proceeds by the club
10licensee.

11(2) Any club licensee proceeds remaining after
12distribution under paragraph (1) shall be distributed as
13follows:

14(i) No less than 70% of the proceeds shall be used
15for public interest purposes in the 12-month period from
16which the proceeds were obtained.

17(ii) No more than 30% of the proceeds obtained in a
18calendar year may be retained by a club licensee and used
19for the following operational expenses relating to the
20club licensee:

21(A) Real property taxes.

22(B) Utility and fuel costs.

23(C) Heating and air conditioning equipment or
24repair costs.

25(D) Water and sewer costs.

26(E) Property or liability insurance costs.

27(F) Mortgage payments.

28(G) Interior and exterior repair costs,
29including repair to parking lots.

30(H) New facility construction costs.

1(I) Entertainment equipment, including
2television, video and electronic games.

3(J) Other expenses adopted in regulation by the
4department.

5(a.1) Amounts retained.--Amounts retained by a club licensee
6under subsection (a)(2) shall be expended within [the same
7calendar year] a 12-month period from when the proceeds were
8received unless the club licensee notifies the department that
9funds are being retained for a substantial purchase or project.
10Notification shall include a description of the purchase or
11project, the anticipated cost and the anticipated date of the
12purchase or project.

13(b) Prohibition.--

14(1) Proceeds shall not be used for wages, alcohol or
15food purchases or for the payment of any fine levied against
16the club licensee.

17(2) An officer or employee of a club licensee who
18operates the game of chance shall not participate in the
19game. This paragraph shall not apply to a raffle.

20Section 7. Section 701 of the act, amended February 2, 2012
21(P.L.7, No.2), is amended to read:

22Section 701. Revocation of licenses.

23(a) Grounds.--The following shall be grounds for suspension,
24revocation or nonrenewal of a license:

25(1) Any of the proceeds derived from the operation of
26games of chance by an eligible organization are used for any
27purpose other than for:

28(i) public interest purposes;

29(ii) the purchase of games of chance; or

30(iii) a purpose permitted by Chapter 5.

1(1.1) Any of the funds derived from the operation of
2games of chance by a club licensee are used in a manner that
3does not comply with section 502.

4(2) Any person under 18 years of age is operating or
5playing games of chance.

6(3) The eligible organization has permitted any person
7who has been convicted of a felony in a Federal or State
8court within the past five years or has been convicted in a
9Federal or State court within the past ten years of a
10violation of the act of July 10, 1981 (P.L.214, No.67), known
11as the Bingo Law, or of this act, to manage, set up,
12supervise or participate in the operation of games of chance.

13(4) The facility in which the games of chance are played
14does not have adequate means of ingress and egress and does
15not have adequate sanitary facilities available in the area.

16(5) Any person or persons other than a manager, officer,
17director, bar personnel or a bona fide member of an eligible
18organization have been involved in managing, setting up,
19operating or running games of chance.

20(6) Any person has received compensation for conducting
21games of chance.

22(7) Any prize has been awarded in excess of the limits
23permitted under this act.

24(8) The eligible organization has violated any condition
25of a special permit issued pursuant to section 308.

26(9) The eligible organization conducts the games of
27chance under a lease which calls for:

28(i) leasing such premises from the owner thereof
29under an oral agreement; or

30(ii) leasing such premises from the owner thereof

1under a written agreement at a rental which is determined
2by the amount of receipts realized from the playing of
3games of chance.

4(10) False or erroneous information was provided in the
5original application or in any information provided to the
6licensing authority or the department in any report.

7(11) An eligible organization has been convicted of a
8violation of this act as evidenced by a certified record of
9the conviction.

10[(12) The eligible organization has permitted another
11eligible organization to conduct games of chance on its
12licensed premises without suspending its own operation of
13games of chance during the period that the other licensed
14eligible organization is conducting its games on the
15premises.]

16(13) A club licensee has failed to file an accurate
17report under section 501(a).

18(14) A club licensee has failed to comply with section
19502.

20(15) Failure to file reports under section 501.

21(b) Production of records.--The district attorney may
22require licensees to produce their books, accounts and records
23relating to the conduct of games of chance in order to determine
24if a violation of this act has occurred. Licensees shall also be
25required, upon request, to provide their license, books,
26accounts and records relating to the conduct of games of chance
27to the licensing authority, the Bureau of Liquor Control
28Enforcement or to a law enforcement agency or official. A club
29licensee shall retain records for a period of [five] two years.

30Section 8. Section 702(b) of the act, amended October 24,

12012 (P.L.1462, No.184), is amended to read:

2Section 702. Enforcement.

3* * *

4(b) Bureau of Liquor Control Enforcement.--The following
5shall apply to enforcement:

6(1) If the licensee is a club licensee, the Bureau of Liquor
7Control Enforcement may enforce the provisions of this act in
8accordance with subsection (g). An administrative law judge
9under section 212 of the act of April 12, 1951 (P.L.90, No.21),
10known as the Liquor Code, may impose the penalties under
11subsection (d) following the issuance of a citation by the
12bureau.

13(2) Unless the Bureau of Liquor Control Enforcement has 
14jurisdiction over a club licensee under section 702(b)(1), the
15Bureau of Liquor Control Enforcement shall have no jurisdiction
16to enforce the provisions of this act on any special occasion
17permit holder under section 408.4 of the act of April 12, 1951
18(P.L.90, No.21), known as the Liquor Code.

19* * *

20Section 9. The act is amended by adding a chapter to read:

21CHAPTER 8

22SOCIAL CARD GAMES

23Section 801. Definitions.

24The following words and phrases when used in this chapter
25shall have the meanings given to them in this section unless the
26context clearly indicates otherwise:

27"Nonbanking card game." A card game where players play
28against one another rather than against the house. Nonbanking
29card games may include any of the following:

30(1) Poker games.

1(2) Hearts.

2(3) Rummy.

3(4) Pinochle.

4(5) Bid Whist.

5"Nonbanking card game tournament" or "tournament." A series
6of card games held by a licensed eligible organization during a
7consecutive period of time of not more than 24 hours and not
8held as part of any other games of chance.

9"Pyramid" or "build-up." A card game in which a prize must
10be returned in order to play another game or to be eligible for
11another bigger prize, or a game in which the prize must be
12forfeited if a later game is lost.

13"Social card game" or "card game." A nonbanking card game
14that is played by members at the licensed premises of an
15eligible organization.

16Section 802. Authorization to conduct social card games.

17(a) Authorization.--Notwithstanding any provision of 18
18Pa.C.S. (relating to crimes and offenses) or of this act or any
19other law or regulation to the contrary, social card games may
20be played at the licensed premises of an eligible organization
21in accordance with the requirements of this chapter.

22(b) Conditions.--The following shall apply:

23(1) Card games may only be played by and between members
24of the eligible organization.

25(2) The eligible organization or any other person shall
26not have an interest, financial or otherwise, in the outcome
27of any card game.

28(3) Only nonbanking card games may be played with
29members playing against each other.

30(4) Wagering shall be entirely at the discretion of each

1player.

2(5) The maximum prize or payout for a card game shall be
3limited to $100.

4(6) The eligible organization shall not charge a fee for
5play.

6(7) Not more than ten members may play at any table in a
7card game.

8(8) Card games may only be played in a room set aside
9for those activities at the licensed premises of the eligible
10organization.

11(9) Not more than five gaming tables may be made
12available for the play of card games by the eligible
13organization.

14(10) No card games may be played between the hours of 1
15a.m. and 1 p.m.

16(11) No eligible organization or any other person shall
17collect, obtain or charge any percentage of or shall collect
18or obtain any portion of any wager or winnings of any player
19in a card game, except a player may collect his winnings.

20(12) No eligible organization or any other person shall
21collect, or obtain any money from or charge or impose any fee
22upon, any person that either enables the person to play or
23results in or from the person playing a card game, except
24that this paragraph shall not preclude the collection of a
25membership fee by the eligible organization that is unrelated
26to participation in the play of a card game authorized under
27this chapter.

28(13) An eligible organization that allows the use of its
29premises for the play of card games by its members in
30accordance with this chapter shall submit a schedule of the

1proposed dates of such card games and any card game
2tournament to the licensing authority.

3(c) Required postings.--An eligible organization that
4permits the play of card games at its licensed premises shall
5prominently post the following in close proximity of card game
6tables in the room designated to play card games:

7(1) The wagering limits for each type of card game.

8(2) The rules of play.

9(3) Information on where a person can obtain help for
10problem gambling, including the telephone number for the
11Pennsylvania Compulsive Gambling Hotline.

12(d) Prohibitions.--

13(1) It shall be unlawful for an eligible organization
14to:

15(i) Obtain or collect any money or thing of value
16from the conduct of card games at its licensed premises.

17(ii) Knowingly permit a card game to be played in
18violation of this chapter.

19(iii) Fail to comply with the posting requirement in
20accordance with subsection (c).

21(iv) Engage in any act, practice or course of
22conduct that would constitute fraud or deceit upon any
23player in a card game.

24(v) Allow a person under 21 years of age to play a
25card game at its licensed premises.

26(vi) Knowingly allow any person to employ or attempt
27to employ any device, scheme or artifice to cheat or
28defraud any player in a card game.

29(vii) Advertise any card game in violation of
30section 704.

1(2) A licensed organization that violates paragraph (1)
2shall be subject to the penalties imposed under section
3702(d).

4(e) Applicability.--The requirements of sections 502 and 503
5shall not apply to social card games authorized under this
6chapter.

7Section 803. Card game tournaments.

8(a) Authorization.--Notwithstanding any other provision of
9law or regulation to the contrary, an eligible organization may
10conduct nonbanking card game tournaments. A card game tournament
11conducted by an eligible organization shall comply with all of
12the following:

13(1) Only nonbanking card games shall be played in a card
14game tournament.

15(2) Each card game shall be conducted in a fair and
16honest manner and shall not be operated on a build-up or
17pyramid basis.

18(3) Every player in a tournament shall be given the same
19chance of winning the tournament. Second-chance entries or
20multiple entries shall be prohibited.

21(4) The eligible organization shall conduct each
22tournament and shall not contract with or permit another
23person to conduct the tournament or any card game during the
24tournament.

25(5) Only the eligible organization may receive or have
26any fixed or contingent right to receive, directly or
27indirectly, any profit, remuneration or compensation from or
28related to a card game in a card game tournament, except any
29amount that a person may win as a player on the same basis as
30the other players.

1(6) The eligible organization shall not hold more than
2five card game tournaments annually.

3(7) The eligible organization shall not hold a card game
4tournament within seven calendar days of another tournament
5conducted by the eligible organization.

6(8) The eligible organization may hold only one card
7game tournament during any period of 24 consecutive hours,
8starting from the time the tournament begins.

9(9) At the conclusion of each tournament, the eligible
10organization conducting the tournament shall announce the
11name of the winning player and the amount of winnings.

12(10) The eligible organization shall limit the number of
13tables used in the tournament to not more than five with not
14more than ten players at each table.

15(11) A card game tournament shall only be held in a room
16at the licensed premises designated by the eligible
17organization for the conduct of card games.

18(12) Players in tournaments shall be limited to the
19members of the eligible organization.

20(13) Players shall be 21 years of age or older.

21(14) The card game tournament shall not provide any
22direct financial benefit to the eligible organization or any
23other person, except winning players in the tournament.

24(15) The value of all prizes awarded for each
25tournament, except for a Texas Hold'em tournament, shall not
26exceed $200.

27(16) For a tournament involving Texas Hold'em, all of
28the following shall apply:

29(i) The payment of an entry fee or other
30consideration for participating is prohibited.

1(ii) The value of all prizes awarded to an
2individual winner of a tournament or contest at a single
3table shall not exceed $200 each day.

4(17) The eligible organization shall ensure that
5reasonable accommodations are made for players with
6disabilities.

7(b) Required postings.--Notwithstanding subsection (a), the
8eligible organization shall prominently post the tournament
9rules on a sign in the tournament playing room at least 24 hours
10before the tournament begins. The sign shall be at least 30
11inches by 30 inches, and the rules shall be easily readable. The
12sign shall include all of the following:

13(1) In permanent letters three inches high, the words
14"Tournament Rules."

15(2) Card game or games to be played in the tournament
16and the rules of each card game.

17(3) The prize for each card game and tournament.

18(4) How winners will be determined.

19(5) Any other tournament rules.

20(c) Prizes.--Cash or merchandise prizes may be awarded for
21each card game tournament. All of the following shall apply:

22(1) The eligible organization shall distribute the
23prizes awarded on the day the prizes are won.

24(2) Donated or merchandise prizes shall not be
25repurchased by the eligible organization.

26(3) Only prizes that can be won shall be displayed in
27the room where the tournament will be held.

28Section 10. The provisions of 61 Pa. Code §§ 901.463(4)
29(relating to raffle records), 901.464(9) (relating to punchboard
30and pull-tab records), 901.464a(9) (relating to daily and weekly

1drawing records), 901.466(1) (relating to prize records) and
2901.733(f) (relating to control of prizes) are abrogated.

3Section 11. This act shall take effect immediately.

<-4Section 1. The definitions of "daily drawing," "games of
5chance," "raffle," "public interest purpose" and "weekly
6drawing" in section 103 of the act of December 19, 1988
7(P.L.1262, No.156), known as the Local Option Small Games of
8Chance Act, amended or added February 2, 2012 (P.L.7, No.2) and 
9October 24, 2012 (P.L.1462, No.184), are amended and the section
10is amended by adding definitions to read:

11Section 103. Definitions.

12The following words and phrases when used in this act shall
13have the meanings given to them in this section unless the
14context clearly indicates otherwise:

15* * *

16"Auxiliary group." The term shall not include a branch,
17lodge or chapter of a Statewide organization.

18* * *

19"Conservation organization." A <-national or Statewide
20nonprofit organization or local federation, club or chapter of a
21national or Statewide nonprofit organization whose mission
<-22includes or activities include any of the following:

23(1) Environmental education to promote conservation,
24maintenance, acquisition or improvement of a natural area for
25public use.

26(2) Protection, preservation or management of natural
27resources.

28(3) Restoration, conservation or maintenance of
29wildlife. This paragraph includes the creation or
30preservation of wildlife sanctuaries or preserves.

<-1(4) Best hunting practices, hunter education and hunting
2safety.

3"Daily drawing." A game of chance in which a bona fide
4member selects or is assigned a number for a chance at a prize
5with the winner determined by random drawing to take place on
6the licensed eligible organization's licensed premises during
7the same operating day. The term includes games of chance
8commonly known as "member sign-in lotteries" and "half-and-half
9lotteries." Daily drawing winners may be determined with the aid
10of a passive selection device or reference to drawings conducted
11by the department pursuant to the act of August 26, 1971 
12(P.L.351, No.91), known as the State Lottery Law. Daily drawing
13chances may not be sold for an amount in excess of $1, and no
14more than one chance per individual may be sold per drawing. 
15Nothing in this definition shall restrict an eligible 
16organization from conducting more than one drawing per day. 
17After a daily drawing is held, a bona fide member may 
18immediately select a number for a chance at a prize for the next 
19day's daily drawing.

20* * *

21"Games of chance." Punchboards, daily drawings, weekly
22drawings, 50/50 drawings, raffles, pools<-, race night games and
23pull-tabs, as defined in this act, provided that no such game
24shall be played by or with the assistance of any mechanical or
25electrical devices or media other than a dispensing machine or
26passive selection device and further provided that the
27particular chance taken by any person in any such game shall not
28be made contingent upon any other occurrence or the winning of
29any other contest, but shall be determined solely at the
30discretion of the purchaser. <-This definition includes a race
 

1night game. This definition shall not be construed to authorize
2any other form of gambling currently prohibited under any
3provision of [Title 18 of the Pennsylvania Consolidated
4Statutes] 18 Pa.C.S. (relating to crimes and offenses) or
5authorized under 4 Pa.C.S. (relating to amusements). Nothing in
6this act shall be construed to authorize games commonly known as
7"slot machines" or "video [poker."] poker" or other games 
8regulated by the Pennsylvania Gaming Control Board.

9* * *

10"Pool." A gambling An activity in which a person <-wagers cash
<-11pays an entry fee for each chance to win cash or merchandise
12based on the outcome of an event or series of events wherein the
13participants in the event or series of events are natural
14persons or animals, and <-is a gambling activity that applies all
15of the following: t<-o which all of the following apply:

16(1) The maximum number of individuals that may
17participate in a pool is 100 people.

18(2) The maximum <-amount wagered entry fee for each
19individual entry in a pool is $20.

20(3) Other than the <-wager entry fee no other money or
21thing of value is paid or given for participation in a pool.

22(4) There is at least one <-guaranteed winner from among
23the participants.

24(5) All <-wagers entry fees collected for entry into the
25pool are paid as prizes to one or more <-of the participants in
26the pool <-or to a clearly identified nonprofit organization
27with a public interest purpose.<-

28(6) No wagers or portions thereof are retained by the
29person or eligible organization operating the pool and
30collecting wagers for participation.

1(7) The transaction of entering the pool is incident to
2a bona fide relationship in accordance with this act.

<-3(6) No entry fees or portions thereof are retained by
4the person or eligible organization operating the pool.

5* * *

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

7(1) The activities and operations of a nonprofit 
8benevolent, charitable, religious, educational, 
9philanthropic, humane, scientific, patriotic, social welfare, 
10social advocacy, public health, public safety, emergency 
11response, environmental<-, historic or civic objective.

12(2) Initiating, performing or fostering worthy public
13works or enabling or furthering the erection or maintenance
14of public structures.

15(3) Lessening the burdens borne by government or
16voluntarily supporting, augmenting or supplementing services
17which government would normally render to the people.

18(4) Improving, expanding, maintaining or repairing real
19property owned or leased by an eligible organization and
20relating operational expenses used for purposes specified in
21paragraphs (1), (2) and (3).

22(5) Nonprofit youth sports activities, services to
23support or honor veterans and activities relating to the
24provision of volunteer fire and rescue activities.

25The term does not include the erection or acquisition of any
26real property, unless the property will be used exclusively for
27one or more of the purposes specified in this definition.

28* * *

29"Race night game." A game of chance in which multiple
30participants place <-entry fees or wagers on a prerecorded horse

1race displayed on a single screen to multiple participants
2simultaneously during a gaming session that does not exceed
3eight consecutive hours and is not conducted more frequently
4than once a month. This definition does not include an instant
5racing machine, historical racing machine or other similar pari-
6mutuel device.

<-7"Raffle." A game of chance in which a participant buys a
8ticket for a chance at a prize with the winner determined by [a
9random drawing] random drawings of corresponding ticket stubs
10[to take place at a]. Except for ticket sales by a conservation
11organization, the location and date or dates shall be printed
12upon each ticket. Such games of chance shall include lotteries
13but not daily drawings. Raffle winners may be determined by
14reference to drawings conducted by the department pursuant to
15the act of August 26, 1971 (P.L.351, No.91), known as the State
16Lottery Law.

<-17"Raffle." A game of chance in which a participant buys a
18ticket for a chance at a prize with the winner determined by a
19random drawing of corresponding ticket stubs [to take place at a
20location and date or dates printed upon each ticket]. Such games
21of chance shall include lotteries but not daily and weekly
22drawings. Raffle winners may be determined by reference to
23drawings conducted by the department pursuant to the act of
24August 26, 1971 (P.L.351, No.91), known as the State Lottery
25Law. The term shall include a raffle auction.

26"Raffle auction." A game of chance in which a participant
27buys a ticket for a chance to win a prize as follows:

28(1) Tickets are placed in a location assigned to a
29particular prize.

30(2) The winner of each prize is determined by a random
 

1drawing of a ticket that corresponds to the ticket held by 
2the participant.

3* * *

4"Weekly drawing." A game of chance in which a bona fide 
5member selects or receives a number or numbers for a chance at a 
6prize with the winner determined by a random drawing to take 
7place on the licensed eligible organization's licensed premises 
8at the end of a seven-day period. Weekly drawing winners may be 
9determined with the aid of a passive selection device or 
10reference to drawings conducted by the Department of Revenue 
11pursuant to the act of August 26, 1971 (P.L.351, No.91), known 
12as the State Lottery Law. Weekly drawing chances may not be sold 
13for an amount in excess of $1. After a weekly drawing is held, a 
14bona fide member may immediately select a number for a chance at 
15a prize for the next <-day's weekly drawing.

16Section 2. Section 301 of the act, amended October 24, 2012 
17(P.L.1462, No.184), is amended to read:

18Section 301. Games of chance permitted.

19Every eligible organization to which a license has been 
20issued under the provisions of this chapter may conduct games of 
21chance for the purpose of raising funds for public interest 
22purposes. Except as provided in [Chapter 5<-] Chapters 5 and 9, 
23all proceeds of a licensed eligible organization shall be used 
24exclusively for public interest purposes, for the purchase of 
25games of chance[,] or for the payment of the license fee [or for 
26the payment of the fee for background checks], as required by 
27this act. <-An eligible organization whose primary purpose is the 
28promotion of a public interest may utilize the proceeds from 
29small games of chance to fulfill that purpose.

30Section 2.1. The act is amended by adding a section to read:

1Section 301.1. Prohibition regarding pools.

2The operation of a pool must comply with the Professional and 
3Amateur Sports Protection Act (Public Law 102-559, 28 U.S.C. § 
43701 et seq.) or other Federal law in the operation of or 
5participation in the pool.

6Section 3. Section 302(a), (b), (c), (d), (d.1) <-and (f), (f) 
7and (h) of the act, amended February 2, 2012 (P.L.7, No.2), are 
8amended and the section is amended by adding a subsection to 
9read:

10Section 302. Prize limits.

11(a) Individual prize limit.--Except as provided under 
12subsections (d) and (d.1), the maximum prize which may be
13awarded for any single chance shall be [$1,000] $2,000.

14(b) Aggregate prize limit.--No more than [$25,000] $35,000
15in prizes shall be awarded from games of chance by a licensed
16eligible organization in any seven-day period.

17(c) Raffle prize limit.--Up to [$10,000] $15,000 in prizes 
18may be awarded in raffles in any calendar month.

19* * *

20(d) Exception for raffles.--Notwithstanding subsection (b) 
21or (c), a licensed eligible organization may conduct a raffle 
<-22under section 308 and award a prize or prizes valued in excess
23of [$1,000] $2,000 <-$3,000 each only under the following
24conditions:

25(1) The licensing authority has issued a special permit
26for the raffle under section 308.

27(2) A licensed eligible organization shall be eligible
28to receive no more than [eight<-] ten special permits in any
29licensed term except that a volunteer fire, ambulance or 
30rescue or conservation organization that is not a club
 

1licensee shall be eligible to receive [ten<-] 12 special
2permits in any licensed term.

3(3) Only one raffle may be conducted under each special
4permit issued under section 308.

5(4) Except as provided under subsection (d.1), the total
6of all prizes awarded under this subsection shall be no more
7than [$100,000] $150,000 per calendar year<-, which shall be 
8subject to the aggregate limit under subsection (b) or (c) or 
9this subsection in accordance with section 304.1 and this 
10act.

11(d.1) Additional award.--A volunteer fire, ambulance [or], 
12rescue or conservation organization may, in addition to the 
13total under subsection (d)(4), award up to [$50,000<-] $100,000 
14from raffles which shall not be subject to the aggregate limit 
15under subsection (b), (c) or (d).

16* * *

17(f) Daily drawing carryover.--The prize limitation contained
18in subsections (a) and (b) may be exceeded by a daily drawing
19under the following circumstances: a daily drawing may award a
20prize in excess of [$1,000] $2,000 if such prize is the result
21of a carryover of a drawing which resulted from the winning
22number in such drawing not being among the eligible entrants in
23such drawings. Nothing contained herein shall authorize the
24prize limitation as contained in subsections (a) and (b) to be
25exceeded as a result of a failure to conduct a drawing on an
26operating day during which chances were sold for a daily drawing
27or for a daily drawing for which chances were sold in excess of
28$1 or for which more than one chance was sold to an eligible
29participant.

30* * *

<-1(h) Weekly drawing carryover exception.--Weekly drawings
2shall be governed by the prize limitation contained in
3subsection (b). The prize limitation contained in subsection (b)
4may be exceeded by a weekly drawing under the following
5circumstances: a weekly drawing may award a prize where the cash
6value is in excess of [$25,000] $35,000 if such prize is the
7result of a carryover of a drawing or drawings which resulted
8from the winning number or numbers in such drawing or drawings
9not being among the eligible entrants in such drawings. Nothing
10contained in this chapter shall authorize the prize limitation
11under subsection (b) to be exceeded as a result of a failure to
12conduct a drawing for a week during which chances were sold for
13a weekly drawing or for a weekly drawing for which chances were
14sold in excess of $1.

15(i) Concurrent operation.--Nothing under this act shall
16prohibit the concurrent operation of daily or weekly drawings.

17Section 3.1. Section 303(b) of the act, amended February 2,
182012 (P.L.7, No.2), is amended to read:

19Section 303. Sales limited.

20* * *

21(b) Limitation.--No game of chance, other than a raffle
22under section 302(d), sold, offered for sale or furnished to a 
23licensed eligible organization for use within this Commonwealth
24shall contain, permit, depict or designate a prize having a
25prize limit in excess of [$1,000] $2,000.

<-26Section 3.2. The act is amended by adding a section to read:

27Section 303.1. Raffle sales.

28Nothing in this act shall prohibit the sale of a raffle
29ticket available to an individual who lawfully may enter the
30raffle. Tickets may be issued in accordance with the following:

1(1) Issued at a discounted price.

2(2) Issued as part of the sale of other tickets.

3(3) Issued free of charge or as part of the sale of
4other tickets.

5(4) Issued as bonus tickets as part of the sale of other
6tickets.

7(5) Issued as prizes, including prizes at auctions.

8Section 4. Section 304(g) <-and (h), (h) and (i) of the act,
9amended February 2, 2012 (P.L.7, No.2), are amended and the
10section is amended by adding a subsection to read:

11Section 304. Distributor licenses.

12* * *

13(c.1) Background.--The department shall conduct and annually
14update a criminal history record check on each individual listed
15under subsection (b)(6).

16* * *

17(g) Ineligibility.--The department shall not issue or renew
18a distributor license for the sale of games of chance to a
19person, including any corporation, firm or partnership which has
20as an officer, director or other person in a supervisory or
21management position, or employee eligible to make sales on
22behalf of the distributor, who:

23(1) has been convicted of a felony in a state or Federal
24court within the past five years; or

25(2) has been convicted within ten years of the date of
26application in a state or Federal court of a violation of
27[the act of July 10, 1981 (P.L.214, No.67), known as the
28Bingo Law, or of this act or of a gambling-related offense
29under Title 18 of the Pennsylvania Consolidated Statutes
30(relating to crimes and offenses) or other comparable State

1or Federal law.] any of the following:

2(i) This act.

3(ii) The act of July 10, 1981 (P.L.214, No.67), 
4known as the Bingo Law.

5(iii) A gambling-related offense under 4 Pa.C.S.
6(relating to amusements).

7(iv) A gambling-related offense under 18 Pa.C.S.
8(relating to crimes and offenses).

9(v) A Federal or State law comparable to the
10statutes listed under subparagraphs (i), (ii), (iii) and
11(iv).

12(h) License and renewal fees.--The fee for a distributor
13license shall be [$1,000] $2,000. Licenses shall be renewable on
14an annual basis.

<-15* * *

<-16(i) Exception.--This section shall not apply to the
17manufacture or distribution of raffle tickets, 50/50 drawings, 
18daily drawings, weekly drawings or pools.

19Section 4.1. Section 305(d) of the act, amended October 24,
202012 (P.L.1462, No.184), is amended to read:

21Section 305. Registration of manufacturers.

22* * *

23(d) Exception.--This section shall not apply to the 
24manufacture or distribution of raffle tickets, 50/50 drawings, 
25daily drawings [or], weekly drawings or pools.

26Section 5. Section 306(b) and (c) of the act, amended
27October 24, 2012 (P.L.1462, No.184), are amended and subsection
28(a) is amended by adding a paragraph to read:

29Section 306. Regulations of department.

30(a) Authorization.--The department shall promulgate

1regulations to:

2* * *

3(3.1) Establish procedures to ensure that race night
4games are secure, random and totally dependent upon chance.

5* * *

6(b) Limitation on recordkeeping requirements.--This section
7shall not be construed to authorize the department to promulgate
8regulations providing for recordkeeping requirements for
9licensed eligible organizations which require unreasonable or
10unnecessary information or a repetitious listing of information.
11The department shall strive to keep such recordkeeping
12requirements from being an undue hardship or burden on licensed
13eligible organizations. Except as provided under section 701(b),
14the department may not require the retention of records for a
15period in excess of two years. If an individual prize is in 
16excess of $600, the record shall include the name and address of 
17the winner. An eligible organization shall <-do all of the 
18following:

19(1) Obtain or retain a receipt of a prize that is
20donated.

21(2) Provide each winner with a receipt of the value of
22the prize won, except if the prize is cash.

23(c) Reporting requirements.--Each eligible organization
24which has proceeds in excess of [$2,500] $30,000 in a calendar
25year shall submit an annual report to the department including:

26(1) Prizes awarded as required under section 335 of the
27act of March 4, 1971 (P.L.6, No.2), known as the Tax Reform
28Code of 1971.

29(2) Amounts expended for public interest purposes.

<-30provide each winner with a receipt of the value of the prize

1when the prize exceeds $600.

2(c) [Reporting requirements.--Each eligible organization
3which has proceeds in excess of $2,500 in a calendar year shall
4submit an annual report to the department including:

5(1) Prizes awarded as required under section 335 of the
6act of March 4, 1971 (P.L.6, No.2), known as the Tax Reform
7Code of 1971.

8(2) Amounts expended for public interest purposes.] 
9(Reserved).

10Section 6. Section 307(a), (b), (b.1), (b.2), (b.3), <-(d)(3), 
11(d.1) and (h) of the act, amended February 2, 2012 (P.L.7, No.2) 
12and October 24, 2012 (P.L.1482, No.184), are amended to read:

13Section 307. Licensing of eligible organizations [to conduct
14games of chance].

15[(a) License required.--No eligible organization shall
16conduct or operate any games of chance unless such eligible
17organization has obtained and maintains a valid license or 
18limited occasion license issued pursuant to this section. An 
19auxiliary group of a licensed eligible organization shall be
20eligible to conduct games of chance using the license issued to
21the eligible organization provided that the auxiliary group or
22groups are listed on the application and license of the eligible
23organization. An auxiliary group is not eligible to obtain a 
24license or a limited occasion license. No additional licensing
25fee shall be charged for an auxiliary group's eligibility under
26this chapter. Auxiliary groups shall not include branches,
27lodges or chapters of a Statewide organization.

28(b) Issuance and fees.--The licensing authority shall
29license, upon application, within 30 days any eligible
30organization meeting the requirements for licensure contained in

1this chapter to conduct and operate games of chance at such
2locations within the county or in such manner as stated on the
3application as limited by subsection (b.1). The license fee to
4be charged to each eligible organization shall be $100, except
5for limited occasion licenses which shall be $10. Licenses shall
6be renewable annually upon the anniversary of the date of issue.
7The license fee shall be used by the licensing authority to 
8administer this act.

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

10(1) Except as otherwise provided in this section, a
11licensed eligible organization, except a limited occasion
12licensee, may conduct small games of chance at a licensed
13premises. The licensed premises shall be indicated on the
14eligible organization's license application. Only one license
15shall be issued per licensed premises. Except as provided
16under paragraph (4), a licensed eligible organization may not
17share a licensed premises with another licensed eligible
18organization; and no licensed eligible organization may
19permit its premises to be used for small games of chance by
20another licensed eligible organization.

21(2) Where there exists a location or premises which is
22the normal business or operating site of the eligible
23organization and the location or premises is owned or leased
24by that eligible organization to conduct its normal business,
25that site shall be the eligible organization's licensed
26premises. If that location consists of more than one
27building, the eligible organization shall identify the 
28building that will be designated as the licensed premises.

29(3) When an eligible organization does not own or lease
30a specific location to conduct its normal business, the

1eligible organization may make arrangements that are
2consistent with this act to establish a licensed premises,
3including leasing a premise under a written agreement for a
4rental; however, the rental may not be determined by either
5the amount of receipts realized from the conduct of games of
6chance or the number of people attending. An eligible
7organization may lease a facility for a banquet in connection
8with the serving of a meal based on a per-head charge.

9(3.1) Notwithstanding paragraphs (1), (2) and (3), if an
10eligible organization is unable to conduct games of chance at
11the location listed on its application and license due to
12natural disaster, fire or other circumstance that renders the
13location unusable, the eligible organization may submit a
14written request to the district attorney to conduct games of
15chance in a different location, including the licensed
16premises of another eligible organization. The request must
17include the change in the location and the dates and times
18the games of chance will be operated at the alternative
19location. The district attorney shall establish a limit on
20the duration of the authorization to conduct games of chance
21at the alternative location. Following the expiration of the
22authorization period, the eligible organization must return
23to the location specified in its application and license or
24apply to the licensing authority for a new permanent location
25for the conduct of games of chance. The district attorney may
26approve or deny the request or stipulate additional
27requirements as a condition of approval. If an eligible
28organization permits another eligible organization to use its
29licensed premises to conduct games of chance under this
30paragraph, the eligible organization shall cease its

1operation of games of chance during the time the eligible
2organization utilizing its premises is conducting its games
3of chance.

4(3.2) Notwithstanding paragraphs (1), (2) and (3), the
5following eligible organizations established to raise funds
6shall not be required to conduct a 50/50 drawing or a raffle
7at a licensed premises or to own, lease or establish a
8licensed premises:

9(i) A nonprofit sports team.

10(ii) A primary or secondary school-sponsored club,
11sports team or organization.

12(4) An eligible organization that has obtained a limited
13occasion license under subsection (b.3) may use another
14eligible organization's licensed premises to conduct its
15games of chance. When a licensed eligible organization is
16permitting a limited occasion licensee to use its licensed
17premises for purposes of games of chance, it shall cease the
18operation of its own games of chance during the period that
19the limited occasion licensee is conducting its games on the
20premises.

21(5) For purposes of major league sports drawings, the
22facility at which a major league sports team conducts its
23games shall constitute a premises for purposes of this act.

24(b.2) Off-premises games of chance.--Notwithstanding any
25other provisions of this section, all of the following apply:

26(1) A licensed eligible organization may conduct games
27of chance at a location off its premises when the games of 
28chance are part of an annual carnival, fair, picnic or
29banquet held or participated in by that licensed eligible
30organization on a historical basis. The licensed eligible

1organization must notify, in writing, the district attorney
2and licensing authority of the location, date and times of
3the event where it will be conducting games of chance.

4(2) Raffle tickets may be sold off the licensed premises
5in a municipality which has adopted the provisions of this
6act by an affirmative vote in a municipal referendum. A
7licensed eligible organization which plans to sell raffle
8tickets in a municipality located in a county other than the
9county in which the eligible organization is licensed shall
10notify that county's district attorney and licensing
11authority as to the location and the dates that the licensed
12eligible organization plans to sell raffle tickets.

13(b.3) Limited occasion licenses.--Eligible organizations
14which do not own their own premises or which do not lease a
15specific location to conduct their normal business may apply for
16a limited occasion license to conduct games of chance on not
17more than three occasions covering a total of seven days during
18a licensed year. A limited occasion license entitles an eligible
19organization to conduct no more than two raffles during a
20licensed year where prizes may not exceed the established limits
21for regular monthly raffles. Holders of a limited occasion
22license may not apply or be granted any other license or special
23permit under this act. No holder of a regular license or special
24permit under this act shall apply or be granted a limited
25occasion license.] (a) License required.--The following shall 
26apply:

27(1) An eligible organization shall not conduct or
28operate games of chance unless the eligible organization has
29obtained a valid license <-or limited occasion license issued
30under this section. <-as follows:

1(i) A regular license which must be renewed
2annually.

3(ii) A monthly license which permits the eligible
4organization to conduct games of chance for a 30-
5consecutive-day period.

6(2) An auxiliary group of a licensed eligible
7organization <-shall be eligible to may conduct games of chance
8using the license issued to the eligible organization if the
9auxiliary group is listed on the application and license of
10the eligible organization. An auxiliary group shall not be
11eligible to obtain a license. No additional licensing fee
12shall be charged for an auxiliary group. If the eligible
13organization is a club licensee, the games of chance
<-14conducted by the auxiliary group must be held on the club's
15licensed premises.

16(b) Issuance.--The licensing authority shall issue a license
17within 30 days of the submission of an application by an
18eligible organization that meets the requirements under this
19chapter. <-The licensee may operate games of chance at any
20facility or location within the county.

21(b.1) Fee.--The license fee to be charged to each eligible
22organization for a regular license shall be $150. The license
23fee to be charged for a limited occasion license shall be $10.
24Licenses shall be renewed annually. The fee shall be used by the
25licensing authority to administer this act.

26(b.2) Location.--The following shall apply:

27(1) A club licensee shall conduct small games of chance
28only at a licensed premises indicated on the license
29application. Only one license shall be issued to a club
30licensee per licensed premises. Except as provided under

1paragraph (3), a club licensee may not share a licensed
2premises with another club licensee.

3(2) An eligible organization that holds a license or
4limited occasion license that is not a club licensee may
5conduct small games of chance at a premises or other location
6which is the normal business or operating site of the
7eligible organization or at any premises or other location
8not prohibited by local ordinance, including the premises of
9a club licensee. A club licensee may continue to conduct
10games of chance simultaneously with the conduct of games of
11chance by a limited occasion licensee.

<-12(b.1) Fee.--The license fee to be charged to each eligible
13organization for a regular license shall be $125. The license
14fee to be charged for a monthly license shall be $25. A regular
15license must be renewed annually. The fee shall be used by the
16licensing authority to administer this act.

17(b.2) Location.--An eligible organization that holds a
18license under subsection (a) and that is not a club licensee may
19conduct small games of chance in the county where the license is
20issued at a premises which is in the normal business or
21operating site of the eligible organization or at a premises or
22other location not prohibited by local ordinance, and for which
23the treasurer has been notified, in accordance with the
24following:

25(1) No more than three licensees, including the licensee
26that owns or leases the premises, may conduct small games of
27chance simultaneously at a premises or location.

28(2) A licensee shall ensure that the conduct of small
29games of chance by different organizations are separate and
30clearly identified within a premises or location.

1(3) A licensee that is not a club licensee may conduct
2games of chance simultaneously with the conduct of games of
3chance by a club licensee on not more than three occasions
4covering a total of seven days during the year.

<-5(3) (4) The following shall apply:

6(i) Notwithstanding paragraph (1), if a club
7licensee is unable to conduct games of chance at the
8location listed on its application and license due to
9natural disaster, fire or other circumstance that renders
10the location unusable, the <-eligible organization club
11licensee may submit a written request to the district
12attorney to conduct games of chance in a different
13location, including the licensed premises of another
14eligible organization.

15(ii) A request under subparagraph (i) must include
16the change in the location and the dates and times the
17games of chance will be operated at the alternative
18location.

19(iii) The district attorney shall <-approve or deny
20the request and shall establish a limit on the duration
21of the authorization to conduct games of chance at the
22alternative location. Following the expiration of the
23authorization period, the eligible organization <-club
24licensee must return to the location specified in its
25application and license or apply to the licensing
26authority for a new permanent location <-for the conduct of
27games of chance. The district attorney may <-approve or
28deny the request or stipulate additional requirements as
29a condition of approval.

30(iv) If a club licensee permits another <-eligible

1organization <-club licensee to use its licensed premises
2under this paragraph to conduct games of chance <-under
3this paragraph, the <-eligible organization host club
4licensee must cease its operation of games of chance
5during the time the eligible organization <-club licensee
6utilizing its premises is conducting its games of chance.

<-7(b.3) Limited occasion license.--An eligible organization
8may apply for a limited occasion license to conduct games of
9chance on not more than three occasions covering a total of
10seven days during a licensed year. A limited occasion license
11shall entitle an eligible organization to conduct no more than
12two raffles during a licensed year where prizes may not exceed
13the established limits for regular raffles. The holder of a
14limited occasion license may not apply for or be granted any
15other license under this act.

<-16(d) Operation.--Each licensed eligible organization shall be 
17prohibited from the following:

18* * *

19(3) Paying any compensation to any person for conducting
20any games of chance. Games of chance may only be conducted by
21managers, officers, directors, bar personnel and bona fide
22members of the eligible organization. This paragraph shall 
23not apply to the sale of a raffle or raffle auction ticket.

24* * *

25(d.1) Bank account and records.--[The licensed<-] An eligible
26organization [shall keep a bank account to hold the<-] with
27proceeds of games of chance that exceed $40,000 per year <-shall 
28maintain a bank account, which shall be separate from all other
29funds belonging to the licensed eligible organization. Account
30records shall show all expenditures and income and shall be

1retained by the licensed eligible organization for at least two
2years.

3* * *

4[(h) Background checks.--Each application for a license
5submitted by an eligible organization which has proceeds in
6excess of $2,500 in a year shall include the results of a
7criminal history record information check obtained from the
8Pennsylvania State Police, as defined in 18 Pa.C.S. § 9102
9(relating to definitions) and permitted by 18 Pa.C.S. § 9121(b)
10(relating to general regulations), for the executive officer and
11secretary of the eligible organization making the application
12for a license or any other person required by the department.]

<-13Section 7. Sections 308(a) and 701(a)(5) of the act, amended
14February 2, 2012 (P.L.7, No.2), are amended to read:

15Section 308. Special permits.

16(a) Issuance and fee.--The licensing authority shall issue a
17special permit for each raffle in which the licensed eligible 
18organization proposes to award individual prizes in excess of
19[$1,000] $3,000. The licensing authority may establish and
20collect a fee not to exceed $25 for the issuance of special
21permits under this section.

22* * *

23Section 701. Revocation of licenses.

24(a) Grounds.--The following shall be grounds for suspension,
25revocation or nonrenewal of a license:

26* * *

27(5) Any person or persons other than a manager, officer, 
28director, bar personnel or a bona fide member of an eligible 
29organization have been involved in managing, setting up, 
30operating or running games of chance. This paragraph shall
 

1not apply to the sale of a raffle or raffle auction ticket.

2* * *

3Section 8. Section 702(b) and (c) of the act, amended
4February 2, 2012 (P.L.7, No.2) and October 24, 2012 (P.L.1462,
5No.184), are amended to read:

6Section 702. Enforcement.

7* * *

8(b) Bureau of Liquor Control Enforcement.--If the licensee 
9is a club licensee, the Bureau of Liquor Control Enforcement may 
10enforce the provisions of this act in accordance with subsection 
11(g). An administrative law judge under section 212 of the act of 
12April 12, 1951 (P.L.90, No.21), known as the Liquor Code, may 
13impose the penalties under subsection (d) following the issuance 
14of a citation by the bureau. The Bureau of Liquor Control 
15Enforcement shall have no jurisdiction to enforce the provisions 
16of this act on any special occasion permit holder under section 
17408.4 of the act of April 12, 1951 (P.L.90, No.21), known as the 
18Liquor Code. The Bureau of Liquor Control Enforcement shall 
19retain all powers and duties to enforce the provisions of the 
20Liquor Code on a special occasion permit holder.

21(c) Random audits.--The Bureau of Liquor Control Enforcement
22shall conduct [annual] biennial random audits of 5% of all club
23licensees.

24* * *

25Section 9. The act is amended by adding a section to read:

26Section 708. Pool selling.

27Notwithstanding 18 Pa.C.S. § 5514 (relating to pool selling
28and bookmaking), the operation of or participation in a pool in
29accordance with this act shall not constitute a criminal
30activity.

1Section <-7 10. This act shall take effect in 60 days.