Regular Session 2017-2018 House Bill 0864 P.N. 4303

SENATE AMENDED

PRIOR PRINTER'S NOS. 970, 1984, 2009,

3433, 3801, 3433

PRINTER'S NO. 4303

THE GENERAL ASSEMBLY OF PENNSYLVANIA

HOUSE BILL

No.

864

Session of

2017

INTRODUCED BY MUSTIO, D. COSTA, DeLUCA, ORTITAY, SANKEY, WARD,

MILLARD, DEASY, MATZIE, KORTZ, MICCARELLI, JOZWIAK AND

ROTHMAN, MARCH 16, 2017

AS AMENDED ON THIRD CONSIDERATION, IN SENATE, OCTOBER 17, 2018

AN ACT

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

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

eligible organizations to conduct games of chance, for the

licensing of persons to distribute games of chance, for the

registration of manufacturers of games of chance, and for

suspensions and revocations of licenses and permits;

requiring records; providing for local referendum by

electorate; and prescribing penalties," in preliminary

provisions, further providing for legislative intent and for

definitions; in games of chance, further providing for

PROHIBITION REGARDING POOLS, FOR prize limits, AND FOR MAJOR

LEAGUE SPORTS DRAWING, providing for airport 50/50 drawing

and further providing for licensing of eligible

organizations; in club licensees, further providing for club

licensee and for distribution of proceeds; and, in

enforcement, further providing for enforcement.; AND, IN

TAVERN GAMING, FURTHER PROVIDING FOR LICENSES, FOR

APPLICATION, FOR ENFORCEMENT AND FOR PROHIBITION.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

Section 1. Section 102 of the act of December 19, 1988

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

Chance Act, is amended to read:

Section 102. Legislative intent.

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The General Assembly hereby declares that the playing of

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

nonprofit associations, for the promotion of charitable or civic

purposes, is in the public interest. In some cases, the proceeds

from games of chance may be utilized to support certain

operating expenses of certain organizations.

The General Assembly hereby declares that raising public

funds from games of chance in licensed restaurants and

protecting the competitiveness of these restaurants is also in

the public interest.

The General Assembly hereby declares that raising funds from

a 50/50 drawing conducted in airport systems, the net proceeds

of which will be used for charitable purposes, is in the public

interest.

It is hereby declared to be the policy of the General

Assembly that all phases of licensing, operation and regulation

of games of chance be strictly controlled, and that all laws and

regulations with respect thereto as well as all gambling laws

should be strictly construed and rigidly enforced.

The General Assembly recognizes the possibility of

association between commercial gambling and organized crime, and

wishes to prevent participation by organized crime and prevent

the diversion of funds from the purposes herein authorized.

Section 2. Section 103 of the act is amended by adding

definitions to read:

SECTION 2. THE DEFINITIONS OF "AFFILIATED NONPROFIT

ORGANIZATION," "ELIGIBLE ORGANIZATION," "MAJOR LEAGUE SPORTS

DRAWING" AND "MAJOR LEAGUE SPORTS TEAM" IN SECTION 103 OF THE

ACT ARE AMENDED AND THE SECTION IS AMENDED BY ADDING DEFINITIONS

TO READ:

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Section 103. Definitions.

The following words and phrases when used in this act shall,

except as provided under section 902, have the meanings given to

them in this section unless the context clearly indicates

otherwise:

* * *

"AFFILIATED NONPROFIT ORGANIZATION." AN ORGANIZATION

ESTABLISHED BY OR AFFILIATED WITH [A MAJOR LEAGUE BASEBALL,

NATIONAL HOCKEY LEAGUE, NATIONAL BASKETBALL ASSOCIATION OR MAJOR

LEAGUE SOCCER TEAM] AN ATHLETIC TEAM FOR THE PURPOSE OF RAISING

FUNDS FOR CHARITY, WHICH IS QUALIFIED FOR AN EXEMPTION UNDER

SECTION 501(C)(3) OF THE INTERNAL REVENUE CODE OF 1986 (PUBLIC

LAW 99-514, 26 U.S.C. § 101(C)(3)).

"Airport." A publicly owned commercial service airport that

is designated by the Federal Government as an international

airport.

"Airport 50/50 drawing." A 50/50 drawing that is conducted

by an airport in accordance with section 304.2.

"ATHLETIC EVENT DRAWING." A 50/50 DRAWING THAT IS CONDUCTED

BY AN AFFILIATED NONPROFIT ORGANIZATION IN ACCORDANCE WITH

SECTION 304.1.

"ATHLETIC TEAM." A SPORTS TEAM OR RACING FACILITY THAT IS

ANY OF THE FOLLOWING:

(1) A MEMBER OF MAJOR LEAGUE BASEBALL, THE NATIONAL

HOCKEY LEAGUE, THE NATIONAL BASKETBALL ASSOCIATION, THE

NATIONAL FOOTBALL LEAGUE OR MAJOR LEAGUE SOCCER.

(2) A PROFESSIONAL SPORTS TEAM AFFILIATED WITH A TEAM

UNDER PARAGRAPH (1).

(3) ANY OTHER PROFESSIONAL SPORTS TEAM THAT HAS A SPORTS

FACILITY OR AN AGREEMENT WITH A SPORTS FACILITY TO CONDUCT

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HOME GAMES AT THE FACILITY.

(4) A STADIUM, GRANDSTAND OR BLEACHER AT A CLOSED-COURSE

MOTOR FACILITY WHERE SPECTATORS DIRECTLY OBSERVE MOTOR RACES

WITH NASCAR, INDY, STOCK OR DRAG RACING CARS.

(5) A COLLEGIATE TEAM THAT COMPETES ON BEHALF OF AN

INSTITUTION OF HIGHER EDUCATION.

* * *

"ELIGIBLE ORGANIZATION." A CHARITABLE, RELIGIOUS, FRATERNAL

OR VETERANS' ORGANIZATION, CLUB, CLUB LICENSEE OR CIVIC AND

SERVICE ASSOCIATION OR AN AIRPORT. IN ORDER TO QUALIFY AS AN

ELIGIBLE ORGANIZATION FOR PURPOSES OF THIS ACT, AN ORGANIZATION

SHALL HAVE BEEN IN EXISTENCE AND FULFILLING ITS PURPOSES FOR ONE

YEAR PRIOR TO THE DATE OF APPLICATION FOR A LICENSE. THE TERM

SHALL INCLUDE AN AFFILIATED NONPROFIT ORGANIZATION LICENSED

UNDER SECTION 307.

* * *

"INSTITUTION OF HIGHER EDUCATION." ANY OF THE FOLLOWING:

(1) A COMMUNITY COLLEGE OPERATING UNDER ARTICLE XIX-A OF

THE ACT OF MARCH 10, 1949 (P.L.30, NO.14), KNOWN AS THE

PUBLIC SCHOOL CODE OF 1949.

(2) A UNIVERSITY WITHIN THE STATE SYSTEM OF HIGHER

EDUCATION.

(3) THE PENNSYLVANIA STATE UNIVERSITY.

(4) THE UNIVERSITY OF PITTSBURGH.

(5) TEMPLE UNIVERSITY.

(6) LINCOLN UNIVERSITY.

(7) ANY OTHER INSTITUTION THAT IS DESIGNATED AS "STATE

RELATED" BY THE COMMONWEALTH.

(8) ANY ACCREDITED PRIVATE OR INDEPENDENT COLLEGE OR

UNIVERSITY.

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["MAJOR LEAGUE SPORTS DRAWING." A 50/50 DRAWING CONDUCTED BY

A NONPROFIT AFFILIATE OF A MAJOR LEAGUE SPORTS TEAM IN

ACCORDANCE WITH SECTION 304.1.

"MAJOR LEAGUE SPORTS TEAM." A SPORTS TEAM OR RACING FACILITY

THAT IS ANY OF THE FOLLOWING:

(1) A MEMBER OF MAJOR LEAGUE BASEBALL, THE NATIONAL

HOCKEY LEAGUE, THE NATIONAL BASKETBALL ASSOCIATION, THE

NATIONAL FOOTBALL LEAGUE OR MAJOR LEAGUE SOCCER.

(2) A PROFESSIONAL SPORTS TEAM AFFILIATED WITH A TEAM

UNDER PARAGRAPH (1).

(3) ANY OTHER PROFESSIONAL SPORTS TEAM THAT HAS A SPORTS

FACILITY OR AN AGREEMENT WITH A SPORTS FACILITY TO CONDUCT

HOME GAMES AT THE FACILITY.

(4) A STADIUM, GRANDSTAND OR BLEACHER AT A CLOSED-COURSE

MOTOR FACILITY WHERE SPECTATORS ARE DIRECTLY OBSERVING MOTOR

RACES WITH NASCAR, INDY, STOCK OR DRAG RACING CARS.]

* * *

Section 3. Section 302 of the act is amended to read:

SECTIONS 301.1, 302 AND 304.1 OF THE ACT ARE AMENDED TO READ:

SECTION 301.1. PROHIBITION REGARDING POOLS.

THE OPERATION OF A POOL MUST COMPLY WITH [THE PROFESSIONAL

AND AMATEUR SPORTS PROTECTION ACT (PUBLIC LAW 102-559, 28 U.S.C.

§ 3701 ET SEQ.) OR OTHER] FEDERAL LAW IN THE OPERATION OF OR

PARTICIPATION IN THE POOL.

Section 302. Prize limits.

(a) Individual prize limit.--

(1) Except as provided under subsections (d) and (d.1),

the maximum prize which may be awarded for any single chance

shall be $2,000[.], other than a weekly drawing.

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

weekly drawing shall be $14,000.

[(b) Aggregate prize limit.--No more than $35,000 in prizes

shall be awarded from games of chance by a licensed eligible

organization in any seven-day period.]

awarded in raffles in any calendar month.

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

shall be subject to the aggregate prize limits under subsection

(b).]

(d) Exception for raffles.--Notwithstanding subsection [(b)

or] (c), a licensed eligible organization may conduct a raffle

under section 308 and award a prize or prizes valued in excess

of $3,000 each only under the following conditions:

(1) The licensing authority has issued a special permit

for the raffle under section 308.

(2) A licensed eligible organization shall be eligible

to receive no more than ten special permits in any licensed

term except that a volunteer fire, ambulance, rescue or

conservation organization that is not a club licensee shall

be eligible to receive 12 special permits in any licensed

term.

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

permit issued under section 308.

(4) Except as provided under subsection (d.1), the total

of all prizes awarded under this subsection shall be no more

than $150,000 per calendar year, which shall not be subject

to the aggregate limit under subsection [(b) or] (c).

(d.1) Additional award.--A volunteer fire, ambulance, rescue

or conservation organization may, in addition to the total under

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subsection (d)(4), award up to $100,000 from raffles which shall

not be subject to the aggregate limit under subsection [(b),]

(f) Daily drawing carryover.--The prize limitation contained

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

daily drawing under the following circumstances: a daily drawing

may award a prize in excess of $2,000 if such prize is the

result of a carryover of a drawing which resulted from the

winning number in such drawing not being among the eligible

entrants in such drawings. Nothing contained herein shall

authorize the prize limitation as contained in [subsections]

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

to conduct a drawing on an operating day during which chances

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

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

chance was sold to an eligible participant.

[(g) Additional exception.--When a daily drawing or weekly

drawing is set up or conducted in such a manner as to pay out or

award 100% of the gross revenues generated from such drawing,

the limitation contained in subsection (b) shall not apply.]

(h) Weekly drawing carryover exception.--Weekly drawings

shall be governed by the prize limitation contained in

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

subsection [(b)] (a) may be exceeded by a weekly drawing under

the following circumstances: a weekly drawing may award a prize

where the cash value is in excess of [$35,000] $14,000 if such

prize is the result of a carryover of a drawing or drawings

which resulted from the winning number or numbers in such

drawing or drawings not being among the eligible entrants in

such drawings. Nothing contained in this chapter shall authorize

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the prize limitation under subsection [(b)] (a) to be exceeded

as a result of a failure to conduct a drawing for a week during

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

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

(i) Concurrent operation.--Nothing under this act shall

prohibit the concurrent operation of daily or weekly drawings.

SECTION 304.1. [MAJOR LEAGUE SPORTS] ATHLETIC EVENT DRAWING.

(A) GENERAL RULE.--A PERSON MAY PURCHASE ONE OR MORE [MAJOR

LEAGUE SPORTS] ATHLETIC EVENT DRAWING TICKETS AT A HOME GAME OR

TEAM EVENT, AND EACH TICKET PURCHASED SHALL REPRESENT ONE ENTRY

IN THE DRAWING FOR A WINNER. A SINGLE TICKET SHALL BE RANDOMLY

CHOSEN AS THE WINNER AFTER A CERTAIN NUMBER OF TICKETS ARE SOLD

OR A SPECIFIED TIME PERIOD EXPIRES AS DESIGNATED BY THE

AFFILIATED NONPROFIT ORGANIZATION. PURCHASE OF ATHLETIC EVENT

DRAWING TICKETS MAY BE MADE BY CASH, CREDIT CARD OR DEBIT CARD.

(B) FREQUENCY.--AN AFFILIATED NONPROFIT ORGANIZATION MAY

CONDUCT NO MORE THAN ONE [MAJOR LEAGUE SPORTS] ATHLETIC EVENT

DRAWING PER HOME GAME OR TEAM EVENT.

(B.1) SALES RESTRICTED.--TICKETS FOR [A MAJOR LEAGUE SPORTS]

AN ATHLETIC EVENT DRAWING MAY NOT BE SOLD IN ANY SEATING AREA

DESIGNATED AS A FAMILY SECTION.

(B.2) CHARITABLE EVENT.--[A MAJOR LEAGUE SPORTS] AN ATHLETIC

EVENT DRAWING MAY BE CONDUCTED BY THE AFFILIATED NONPROFIT

ORGANIZATION DURING A CHARITABLE EVENT HELD WITHIN THE SAME

ARENA, STADIUM, GRANDSTAND, BLEACHERS OR OTHER FACILITY DURING A

HOME GAME, TEAM EVENT OR CAR RACE OF THE [MAJOR LEAGUE SPORTS]

ATHLETIC TEAM. DRAWINGS MAY ONLY BE HELD WITHIN SPECTATOR AREAS

WITHIN THE ARENA, STADIUM, GRANDSTAND OR BLEACHERS WHERE THE

HOME GAME, TEAM EVENT OR CAR RACE IS BEING CONDUCTED AND NOT AT

ANCILLARY AREAS OR FACILITIES, INCLUDING PARKING AREAS,

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RESTAURANTS AND BARS OR AREAS OUTSIDE THE ARENA, STADIUM,

GRANDSTAND OR BLEACHERS OR AREAS WHERE THE SPORT IS SHOWN ON

REMOTE ELECTRONIC EQUIPMENT.

SPORTS] AN ATHLETIC EVENT DRAWING SHALL BE 50% OF THE TOTAL

AMOUNT COLLECTED FROM THE SALE OF [MAJOR LEAGUE SPORTS] ATHLETIC

EVENT DRAWING TICKETS. EXCEPT AS SET FORTH IN SUBSECTION (C.1),

THE OTHER 50% OF THE TOTAL AMOUNT COLLECTED FROM THE SALE OF

[MAJOR LEAGUE SPORTS] ATHLETIC EVENT DRAWING TICKETS SHALL BE

DONATED WITHIN SEVEN DAYS FROM THE DATE OF THE DRAWING BY THE

AFFILIATED NONPROFIT ORGANIZATION CONDUCTING THE [MAJOR LEAGUE

SPORTS] ATHLETIC EVENT DRAWING TO ONE OR MORE DESIGNATED

CHARITABLE ORGANIZATIONS FOR WHICH THE DRAWING WAS CONDUCTED.

(C.1) USE OF FUNDS.--

(1) THE AFFILIATED NONPROFIT ORGANIZATION MAY UTILIZE

NONPRIZE MONEY COLLECTED FOR THE FOLLOWING:

(I) TO EMPLOY OR PROVIDE PAYMENT TO INDIVIDUALS 18

YEARS OF AGE OR OLDER TO SELL [MAJOR LEAGUE SPORTS]

ATHLETIC EVENT DRAWING TICKETS [AT A PROFESSIONAL

SPORTING EVENT].

(II) FOR ADMINISTRATIVE EXPENSES DIRECTLY RELATED TO

THE CONDUCT OF THE ATHLETIC EVENT DRAWING UNDER THIS

SECTION.

(2) AUTHORIZED EXPENSES UNDER PARAGRAPH (1)(II) MAY NOT

EXCEED 2% OF THE TOTAL AMOUNT COLLECTED FROM THE SALE OF

[MAJOR LEAGUE SPORTS] ATHLETIC EVENT DRAWING TICKETS.

(D) DESIGNATED CHARITABLE ORGANIZATION.--THE AFFILIATED

NONPROFIT ORGANIZATION CONDUCTING THE [MAJOR LEAGUE SPORTS]

ATHLETIC EVENT DRAWING SHALL DISCLOSE TO ALL TICKET PURCHASERS

THE DESIGNATED CHARITABLE ORGANIZATION FOR WHICH THE [MAJOR

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LEAGUE SPORTS] ATHLETIC EVENT DRAWING IS BEING CONDUCTED.

(E) ELIGIBILITY.--IN ORDER TO RECEIVE PROCEEDS FROM [A MAJOR

LEAGUE SPORTS] AN ATHLETIC EVENT DRAWING, A CHARITABLE

ORGANIZATION MUST BE IN EXISTENCE AND FULFILLING ITS PURPOSES

FOR AT LEAST TWO YEARS PRIOR TO THE DRAWING AND SHALL BE

ELIGIBLE FOR EXEMPTION UNDER SECTION 501(C)(3) OF THE INTERNAL

REVENUE CODE OF 1986 (PUBLIC LAW 99-514, 26 U.S.C. § 501(C)(3)).

A POLITICAL SUBDIVISION SHALL NOT QUALIFY AS A CHARITABLE

ORGANIZATION UNDER THIS SECTION.

(F) UNCLAIMED PRIZES.--ANY [MAJOR LEAGUE SPORTS] ATHLETIC

EVENT DRAWING PRIZE REMAINING UNCLAIMED BY A WINNER AT THE END

OF THE [MAJOR LEAGUE SPORTS] ATHLETIC TEAM'S SEASON SHALL BE

DONATED WITHIN 30 DAYS FROM THE END OF THE SEASON BY THE

AFFILIATED NONPROFIT ORGANIZATION TO THE DESIGNATED CHARITABLE

ORGANIZATION FOR WHICH THE [MAJOR LEAGUE SPORTS] ATHLETIC EVENT

DRAWING WAS CONDUCTED.

(G) APPLICABILITY.--THE LIMITATIONS UNDER SECTIONS 302,

303(B), 308 AND 704 SHALL NOT APPLY TO [A MAJOR LEAGUE SPORTS]

AN ATHLETIC EVENT DRAWING.

(H) ADDITIONAL RECORDKEEPING.--THE DEPARTMENT MAY REQUIRE

ADDITIONAL RECORDKEEPING OR ACCOUNTABILITY MEASURES FOR [MAJOR

LEAGUE SPORTS] ATHLETIC EVENT DRAWINGS.

(I) MECHANICAL OR ELECTRICAL DEVICES.--AN ATHLETIC EVENT

DRAWING MAY BE PLAYED WITH THE ASSISTANCE OF A MECHANICAL OR

ELECTRICAL DEVICE, NOTHING UNDER THIS SUBSECTION SHALL BE

CONSTRUED TO AUTHORIZE ANY OTHER FORM OF GAMBLING AUTHORIZED

UNDER 4 PA.C.S. (RELATING TO AMUSEMENTS).

(J) DEFINITION.--AS USED IN THIS SECTION, THE TERM "TEAM

EVENT" MEANS A PRACTICE, SCRIMMAGE, EXHIBITION OR SIMILAR EVENT

AT THE HOME STADIUM OR TRAINING CAMP FACILITY OF AN ATHLETIC

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TEAM UNDER PARAGRAPH (1), (2), (3) OR (4) OF THE DEFINITION OF

"ATHLETIC TEAM" IN SECTION 103.

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

Section 304.2. Airport 50/50 drawing.

(a) General rule.--A person may purchase one or more airport

50/50 drawing tickets, and each ticket shall represent one entry

in the drawing for a winner. A single ticket shall be randomly

chosen as the winner after a certain number of tickets are sold

or a specified time period expires, as designated by the

airport. Purchase of airport 50/50 drawing tickets may be made

by cash, credit card or debit card. AN AIRPORT 50/50 DRAWING MAY

ONLY TAKE PLACE PURSUANT TO AUTHORIZATION BY THE AIRPORT

GOVERNING BODY.

(B) AIRPORT.--PRIOR TO PURCHASING AN AIRPORT 50/50 DRAWING

TICKET, THE AIRPORT SHALL REQUEST CONTACT INFORMATION FROM

PROSPECTIVE BUYER.

(b) (C) Frequency and location.--An airport 50/50 drawing

may be conducted at an airport no more than one time per

calendar day. Drawings may only be held within the spaces of an

airport terminal to which the general public, including ticketed

passengers, regularly has access. ACCESSIBLE ONLY BY THE GENERAL

PUBLIC WHO ARE TICKETED PASSENGERS AND HAVE PROCEEDED THROUGH A

SECURITY CHECKPOINT.

drawing shall be 50% of the total amount collected from the sale

of airport 50/50 drawing tickets. The other 50% of the total

amount collected from the sale of airport 50/50 drawing tickets

shall be donated within seven days from the date of the drawing

by the airport to the designated charitable organization for

which the drawing was conducted.

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(d) (E) Designated charitable organization.--The identity of

the designated charitable organization for which the airport

50/50 drawing is being conducted shall be disclosed to all

ticket purchasers.

(e) (F) Eligibility.--In order to receive proceeds from an

airport 50/50 drawing, a charitable organization must be in

existence and fulfill its purposes prior to the airport 50/50

drawing and shall be eligible for exemption under section 501(c)

(3) of the Internal Revenue Code of 1986 (Public Law 99-514, 26

U.S.C. § 501(c)(3)). A political subdivision , AIRPORT OR AIRPORT

AUTHORITY shall not qualify as a charitable organization under

this act, but an organization formed by a political subdivision

that is eligible for exemption under section 501(c)(3) of the

Internal Revenue Code of 1986 shall qualify as a charitable

organization under this act.

(G) NOTIFICATION.--AN AIRPORT SHALL CONTACT A WINNER BASED

ON THE INFORMATION SUBMITTED UNDER SUBSECTION (B).

(f) (H) Unclaimed prizes.--Any airport 50/50 drawing prize

remaining unclaimed by a winner 180 days after the drawing shall

be donated to the designated charitable organization for which

the airport 50/50 drawing was conducted.

(g) (I) Applicability.--The limitations under sections 302,

303(b), 308 and 704 shall not apply to an airport 50/50 drawing.

(J) MECHANICAL OR ELECTRICAL DEVICES.--AN AIRPORT 50/50

DRAWING MAY BE PLAYED WITH THE ASSISTANCE OF A MECHANICAL OR

ELECTRICAL DEVICE, NOTHING UNDER THIS SUBSECTION SHALL BE

CONSTRUED TO AUTHORIZE ANY OTHER FORM OF GAMBLING AUTHORIZED

UNDER 4 PA.C.S. (RELATING TO AMUSEMENTS).

(h) (K) Additional recordkeeping.--The department may

require additional recordkeeping or accountability measures for

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airport 50/50 drawings.

(I) (L) RESTRICTION ON AIRPORTS.--NOTWITHSTANDING ANY OTHER

PROVISIONS OF THIS ACT, AN AIRPORT SHALL ONLY BE PERMITTED TO

CONDUCT AIRPORT 50/50 DRAWINGS UNDER THIS SECTION AND NO OTHER

GAMES OF CHANCE.

Section 5. Sections 307(d.1), 501(a)(1), 502(a.1)(1) and,

702(g), 903(B) AND (E) AND 904 of the act are amended to read:

Section 307. Licensing of eligible organizations.

* * *

(d.1) Bank account and records.--An eligible organization

with proceeds of games of chance that exceed [$40,000] $60,000

per year shall maintain a bank account, which shall be separate

from all other funds belonging to the licensed eligible

organization. Account records shall show all expenditures and

income and shall be retained by the licensed eligible

organization for at least two years.

* * *

Section 501. Club licensee.

(a) Report.--

(1) [Beginning in 2014, a] A club licensee with proceeds

in excess of [$20,000] $30,000 in a calendar year shall

submit annual reports to the department for the preceding 12-

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

department.

* * *

Section 502. Distribution of proceeds.

* * *

(a.1) Amounts retained.--

(1) Notwithstanding subsection (a), if in a calendar

year [beginning January 1, 2013,] the proceeds from a game of

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chance for a club licensee are [$40,000] $60,000 or less, the

licensee shall be eligible to retain the first [$20,000]

$30,000 in proceeds in the following calendar year before

subsection (a) applies.

* * *

Section 702. Enforcement.

* * *

(g) [General rule] Violations of Liquor Code.--

(1) Except as provided in paragraph (2), a violation of

this act by a club licensee shall not constitute a violation

of the Liquor Code.

(2) If a club licensee has committed three or more

violations of this act, the Bureau of Liquor Control

Enforcement may enforce a violation of this act as a

violation of the Liquor Code.

(3) A violation of this act shall not constitute a

violation of the Liquor Code for the purposes of section

471(c) of the Liquor Code.

(4) A violation of section 304.1 or 304.2 shall not

constitute a violation of the Liquor Code.

SECTION 903. LICENSES.

* * *

(B) INFORMATION.--THE APPLICATION UNDER SUBSECTION (A) SHALL

INCLUDE THE FOLLOWING INFORMATION:

(1) THE NAME, ADDRESS AND PHOTOGRAPH OF THE APPLICANT.

(2) A CURRENT TAX LIEN CERTIFICATE ISSUED BY THE

DEPARTMENT AND A CERTIFICATE FROM THE DEPARTMENT OF LABOR AND

INDUSTRY OF PAYMENT OF ALL WORKERS' COMPENSATION AND

UNEMPLOYMENT COMPENSATION OWED.

(3) THE DETAILS OF ANY LICENSE ISSUED UNDER 4 PA.C.S.

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PT. II (RELATING TO GAMING), THE ACT OF APRIL 12, 1951

(P.L.90, NO.21), KNOWN AS THE LIQUOR CODE, OR THIS ACT WHICH

WAS APPLIED FOR OR IN WHICH THE APPLICANT OR OTHER OWNER HAS

AN INTEREST.

(4) [CERTIFIED CONSENT BY THE APPLICANT, INCLUDING EACH

OWNER AND OFFICER OF THE RESTAURANT LICENSEE, TO A BACKGROUND

INVESTIGATION BY THE BUREAU.] A CRIMINAL HISTORY RECORD

INFORMATION REPORT ISSUED UNDER 18 PA.C.S. CH. 91 (RELATING

TO CRIMINAL HISTORY RECORD INFORMATION) OBTAINED FROM THE

PENNSYLVANIA STATE POLICE.

(5) RELATING TO CRIMINAL INFORMATION UNDER PARAGRAPH

(4), DISCLOSURE OF ALL ARRESTS AND CITATIONS OF THE

APPLICANT, INCLUDING NONTRAFFIC SUMMARY OFFENSES. THE

INFORMATION SHALL INCLUDE ALL OF THE FOLLOWING:

(I) A BRIEF DESCRIPTION OF THE CIRCUMSTANCES

SURROUNDING THE ARREST OR ISSUANCE OF THE CITATION.

(II) THE SPECIFIC OFFENSE CHARGED.

(III) THE ULTIMATE DISPOSITION OF THE CHARGE,

INCLUDING ANY DISMISSAL, PLEA BARGAIN, CONVICTION,

SENTENCE, PARDON, EXPUNGEMENT OR ORDER OF ACCELERATED

REHABILITATIVE DISPOSITION.

(6) FINANCIAL BACKGROUND AND INTERESTS AND TRANSACTIONS

AS REQUIRED BY THE BUREAU.

(7) RELATING TO CITATIONS OF THE APPLICANT ISSUED UNDER

THE LIQUOR CODE OR ANY OTHER DISCIPLINE OR PENALTY

ADMINISTERED OR ISSUED BY A COMMONWEALTH AGENCY.

(8) RELATING TO DISCLOSURE OF CONDITIONAL LICENSE

AGREEMENTS ENTERED INTO UNDER THE LIQUOR CODE.

(9) ANY OTHER INFORMATION REQUIRED BY THE BOARD.

* * *

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[(E) BACKGROUND INVESTIGATION.--EACH APPLICANT SHALL INCLUDE

INFORMATION AND DOCUMENTATION AS REQUIRED TO ESTABLISH PERSONAL

AND FINANCIAL SUITABILITY, HONESTY AND INTEGRITY. INFORMATION

SHALL INCLUDE:

(1) CRIMINAL HISTORY RECORD INFORMATION.

(2) FINANCIAL BACKGROUND INFORMATION.

(3) REGULATORY HISTORY BEFORE THE BOARD OR OTHER

COMMONWEALTH AGENCY.

(4) OTHER INFORMATION REQUIRED BY THE BUREAU.]

* * *

SECTION 904. APPLICATION.

(A) APPLICATION FEE.--AN APPLICANT SHALL PAY THE BOARD A

NONREFUNDABLE APPLICATION FEE OF [$1,000] $500.

[(B) INVESTIGATIVE FEE.--AN APPLICANT SHALL PAY AN

INVESTIGATIVE FEE OF $1,000 TO THE BUREAU.] (RESERVED).

AN] INVESTIGATIVE COSTS.--AN APPLICANT AND ANY OWNER AND OFFICER

OF THE APPLICANT SHALL PAY FOR THE [ACTUAL] REASONABLE AND

NECESSARY COSTS OF A BACKGROUND INVESTIGATION CONDUCTED BY THE

BUREAU [THAT EXCEED THE APPLICATION FEE]. THE BUREAU MAY:

(1) CHARGE AN ESTIMATED AMOUNT TO BE PROVIDED PRIOR TO

THE BACKGROUND INVESTIGATION.

(2) SUBMIT FOR REIMBURSEMENT FROM THE APPLICANT FOR THE

ADDITIONAL COSTS INCURRED IN THE BACKGROUND INVESTIGATION.

(D) FUNDS.--FUNDS COLLECTED UNDER [SUBSECTIONS (B) AND]

SUBSECTION (C) SHALL AUGMENT THE FUNDS APPROPRIATED TO THE

PENNSYLVANIA GAMING CONTROL BOARD UNDER 4 PA.C.S. (RELATING TO

AMUSEMENTS).

SECTION 6. SECTION 913(C) AND (D) OF THE ACT ARE AMENDED,

SUBSECTION (F) IS AMENDED BY ADDING A PARAGRAPH AND THE SECTION

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IS AMENDED BY ADDING SUBSECTIONS:

SECTION 913. ENFORCEMENT.

* * *

VIOLATION OF THIS CHAPTER IN ACCORDANCE WITH THE FOLLOWING:

(1) UP TO [$2,000] $800 FOR AN INITIAL VIOLATION.

(2) UP TO [$3,000] $1,000 FOR A SECOND VIOLATION.

(3) UP TO [$5,000] $2,000 FOR A THIRD VIOLATION.

(D) CRIMINAL PENALTY.--A VIOLATION OF THIS CHAPTER SHALL BE

A [MISDEMEANOR OF THE THIRD DEGREE] SUMMARY OFFENSE. A SECOND OR

SUBSEQUENT OFFENSE SHALL BE A MISDEMEANOR OF THE [SECOND] THIRD

DEGREE.

* * *

(F) SUSPENSION, REVOCATION OR FAILURE TO RENEW.--

* * *

(3) A THIRD VIOLATION OF THIS CHAPTER SHALL RESULT IN A

REVOCATION OF A LICENSE ISSUED UNDER THIS CHAPTER. A LICENSEE

SHALL BE INELIGIBLE TO APPLY FOR OR BE AWARDED A LICENSE

UNDER THIS CHAPTER FOR A PERIOD OF FIVE YEARS FOLLOWING A

REVOCATION.

(G) LAW ENFORCEMENT OFFICIALS.--NOTHING UNDER THIS CHAPTER

SHALL BE CONSTRUED TO RESTRICT OR LIMIT THE POWER OF A STATE,

COUNTY OR LOCAL LAW ENFORCEMENT OFFICIAL TO CONDUCT

INVESTIGATIONS AND FILE CRIMINAL CHARGES UNDER THIS CHAPTER.

(H) VIOLATIONS.--

(1) EXCEPT AS PROVIDED UNDER PARAGRAPH (2), A VIOLATION

OF THIS CHAPTER BY A RESTAURANT LICENSEE SHALL NOT CONSTITUTE

A VIOLATION OF THE LIQUOR CODE.

(2) IF A RESTAURANT LICENSEE HAS COMMITTED THREE OR MORE

VIOLATIONS OF THIS ACT IN A CALENDAR YEAR, THE BUREAU MAY

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ENFORCE A VIOLATION OF THIS CHAPTER AS A VIOLATION OF THE

LIQUOR CODE.

SECTION 7. SECTION 914(4) AND (7) OF THE ACT ARE AMENDED TO

READ:

SECTION 914. PROHIBITIONS.

THE FOLLOWING SHALL APPLY TO ANY LICENSE AUTHORIZED OR ISSUED

UNDER THIS CHAPTER:

* * *

(4) THE BOARD SHALL BE PROHIBITED FROM ISSUING A LICENSE

TO ANY PERSON WHO HAS BEEN CONVICTED OF A FELONY OFFENSE OR

MISDEMEANOR GAMBLING OFFENSE IN [ANY JURISDICTION] THIS

COMMONWEALTH UNLESS 15 YEARS HAVE ELAPSED FROM THE DATE OF

CONVICTION OF THE OFFENSE.

* * *

(7) IT SHALL BE UNLAWFUL FOR AN OWNER, OFFICER OR

EMPLOYEE OF A LICENSEE TO SELL, OPERATE OR OTHERWISE

PARTICIPATE IN THE CONDUCT OF TAVERN GAMES IF THE EMPLOYEE

HAS BEEN CONVICTED IN [ANY JURISDICTION] THIS COMMONWEALTH OF

A FELONY OR A MISDEMEANOR GAMBLING OFFENSE UNLESS 15 YEARS

HAVE ELAPSED FROM THE DATE OF CONVICTION OF THE OFFENSE.

* * *

Section 6 8. Within two years of the effective date of this

section, the Department of Revenue shall publish regulations to

implement and administer the provisions of this act.

Section 7 9. This act shall take effect in 60 days. AS

FOLLOWS:

(1) THE AMENDMENT OF SECTIONS 307(D.1), 501(A)(1), AND

502(A.1)(1) AND 702(G) OF THE ACT SHALL TAKE EFFECT JANUARY

1, 2019.

(2) THIS SECTION SHALL TAKE EFFECT IMMEDIATELY.

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(3) THE REMAINDER OF THIS ACT SHALL TAKE EFFECT IN 60

DAYS.

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