PRINTER'S NO. 1523
THE GENERAL ASSEMBLY OF PENNSYLVANIA
SENATE BILL
No.
1061
Session of
2018
INTRODUCED BY FONTANA, VULAKOVICH, STEFANO AND REGAN,
MARCH 9, 2018
REFERRED TO COMMUNITY, ECONOMIC AND RECREATIONAL DEVELOPMENT,
MARCH 9, 2018
AN ACT
Amending the act of December 19, 1988 (P.L.1262, No.156),
entitled "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 tavern gaming,
further providing for definitions, for licenses, for
application, for distribution of net revenue, for tavern
games tax, for host municipality tavern games tax and for
enforcement.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Section 902 of the act of December 19, 1988
(P.L.1262, No.156), known as the Local Option Small Games of
Chance Act, is amended by adding a definition to read:
Section 902. Definitions.
The following words and phrases when used in this chapter
shall have the meanings given to them in this section unless the
context clearly indicates otherwise:
* * *
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"Tavern games." A tavern daily drawing, tavern weekly
drawing, tavern raffle and games of chance.
* * *
Section 2. Sections 903(b) and (e), 904, 909, 909.1(a) and
(c) and 909.2(a) and (c) of the act are amended to read:
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.
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).
(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.
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(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.
* * *
[(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.]
(c) [Costs.--In addition to the fee under subsection (b),
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an] Investigative costs.--An applicant and any owner and officer
of the applicant shall pay for the actual costs of a background
investigation conducted by the bureau [that exceed the
application fee] not to exceed $1,000. 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 (c)
shall augment the funds appropriated to the Pennsylvania Gaming
Control Board under 4 Pa.C.S. (relating to amusements).
Section 909. Distribution of net revenue.
Beginning January 1, [2014] 2019, the net revenue from tavern
games received by a licensee shall be distributed as follows:
(1) [Sixty] Forty-five percent of the net revenue
obtained in any calendar year shall be paid to the
Commonwealth.
(2) [Thirty-five] Fifty percent of the net revenue
obtained in any calendar year may be retained by the
licensee.
(3) Five percent shall be paid to the Commonwealth and
deposited into the restricted receipts account established in
section 909.3.
Section 909.1. Tavern games tax.
(a) Imposition.--There is imposed a tax of [60%] 50% of the
net revenue from tavern games sold by a licensed distributor to
a licensee within this Commonwealth.
* * *
(c) Other games.--In an instance where the tavern game is
not required to be purchased from a licensed distributor under
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this act, a tax of [60%] 50% is imposed upon the net revenue
from tavern daily drawings, tavern weekly drawings and tavern
raffles under section 908.1 and must be paid to the Commonwealth
by the licensee.
* * *
Section 909.2. Host municipality tavern games tax.
(a) Imposition.--There is imposed, in a municipality which
has adopted an ordinance imposing a host municipality tavern
games tax under this section and filed the ordinance with the
Department of Revenue, a tax of 5% of the net revenue from
tavern games sold by a licensed distributor to a licensee within
this Commonwealth in addition to the tax imposed under section
909.1.
* * *
(c) Other games.--In an instance where the tavern game is
not required to be purchased from a licensed distributor under
this act, a tax of 5% is imposed in a municipality which has
adopted an ordinance imposing a host municipality tavern games
tax under subsection (a) upon the net revenue from tavern daily
drawings and tavern raffles under section 908.1 and must be paid
to the Commonwealth and deposited into the restricted receipts
account established in section 909.3.
* * *
Section 3. Section 913(f) of the act is amended by adding a
paragraph to read:
Section 913. Enforcement.
* * *
(f) Suspension, revocation or failure to renew.--
* * *
(3) A third violation of this chapter shall result in a
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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.
Section 4. This act shall take effect in 60 days.
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