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PRIOR PRINTER'S NO. 927
PRINTER'S NO. 1128
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No.
826
Session of
2019
INTRODUCED BY MARSHALL, DUNBAR, KAIL, PYLE, DeLUCA, BERNSTINE,
BURGOS, TOOHIL, MASSER AND KORTZ, MARCH 14, 2019
AS REPORTED FROM COMMITTEE ON GAMING OVERSIGHT, HOUSE OF
REPRESENTATIVES, AS AMENDED, MARCH 27, 2019
AN ACT
Providing for sports raffles for charity; and making related
repeals.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Short title.
This act shall be known and may be cited as the Sports Raffle
Charities Act.
Section 2. Legislative intent.
The General Assembly declares that the playing of games of
chance CONDUCTING 50/50 DRAWINGS AT ATHLETIC EVENTS 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
charitable organizations.
Section 3. Definitions.
The following words and phrases when used in this act shall
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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 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. § 501(c)(3)).
"Athletic event drawing." A 50/50 drawing that is conducted
by an affiliated nonprofit organization in accordance with this
act.
"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
home games at the facility.
(4) A stadium, grandstand, bleacher or contiguous
parking lot 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.
"COUNTY AUTHORITY." THE COUNTY TREASURER, OR IN A HOME RULE
COUNTY OR CITY OF THE FIRST CLASS WHERE THERE IS NO ELECTED
TREASURER, THE DESIGNEE OF THE GOVERNING AUTHORITY.
"Department." The Department of Revenue of the Commonwealth.
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"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) An accredited private or independent college or
university.
"PUBLIC INTEREST PURPOSE." ONE OR MORE OF THE FOLLOWING:
(1) THE ACTIVITIES AND OPERATIONS OF A NONPROFIT
ORGANIZATION THAT PROVIDES A BENEVOLENT, CHARITABLE,
RELIGIOUS, EDUCATIONAL, PHILANTHROPIC, HUMANE, SCIENTIFIC,
PATRIOTIC, SOCIAL WELFARE, SOCIAL ADVOCACY, PUBLIC HEALTH,
PUBLIC SAFETY, EMERGENCY RESPONSE, ENVIRONMENTAL, HISTORIC OR
CIVIC OBJECTIVE.
(2) INITIATING, PERFORMING OR FOSTERING WORTHY PUBLIC
WORKS OR ENABLING OR FURTHERING THE ERECTION OR MAINTENANCE
OF PUBLIC STRUCTURES.
(3) LESSENING THE BURDENS BORNE BY GOVERNMENT OR
VOLUNTARILY SUPPORTING, AUGMENTING OR SUPPLEMENTING SERVICES
WHICH GOVERNMENT WOULD NORMALLY RENDER TO THE PEOPLE.
(4) IMPROVING, EXPANDING, MAINTAINING OR REPAIRING REAL
PROPERTY OWNED OR LEASED BY A NONPROFIT ORGANIZATION AND
RELATING OPERATIONAL EXPENSES USED FOR PURPOSES SPECIFIED IN
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PARAGRAPHS (1), (2) AND (3).
(5) NONPROFIT YOUTH SPORTS ACTIVITIES.
(6) ACTIVITIES RELATING TO THE PROVISION OF VOLUNTEER
FIRE, AMBULANCE OR RESCUE SERVICES.
(7) ACTIVITIES CONDUCTED BY A VETERANS ORGANIZATION,
INCLUDING:
(I) SCHOLARSHIPS.
(II) SERVICES TO ECONOMICALLY OR SOCIALLY SUPPORT
VETERANS.
(III) ACTIVITIES TO HONOR VETERANS.
(IV) OTHER ACTIVITIES THAT QUALIFY UNDER PARAGRAPHS
(1), (2), (3), (4), (5) AND (6).
THE TERM DOES NOT INCLUDE THE ERECTION OR ACQUISITION OF REAL
PROPERTY, UNLESS THE PROPERTY WILL BE USED EXCLUSIVELY FOR ONE
OR MORE OF THE PURPOSES SPECIFIED IN THIS DEFINITION.
Section 4. Athletic event drawing.
(a) General rule.--A person may purchase one or more
athletic event drawing tickets at a home game, 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 athletic event drawing per home game.
(c) Sales restricted.--Tickets for an athletic event drawing
may not be sold in any seating area designated as a family
section OR TO AN INDIVIDUAL UNDER 18 YEARS OF AGE.
(d) Charitable event.--An athletic event drawing may be
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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 athletic team. Drawings may only be
held within spectator areas within the arena, stadium,
grandstand or bleachers where the home game or car race is being
conducted and not at ancillary areas or facilities, including
parking areas, restaurants and bars or areas outside the arena,
stadium, grandstand or bleachers or areas where the sport is
shown on remote electronic equipment.
(e) Distribution.--The prize amount of an athletic event
drawing shall be 50% of the total amount collected from the sale
of athletic event drawing tickets. Except as provided under
subsection (f), the other 50% of the total amount collected from
the sale of athletic event drawing tickets shall be donated
within seven days from the date of the drawing by the affiliated
nonprofit organization conducting the athletic event drawing to
one or more designated charitable organizations for which the
drawing was conducted AND SHALL BE USED EXCLUSIVELY FOR PUBLIC
INTEREST PURPOSES.
(f) 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 athletic event drawing
tickets.
(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
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exceed 2% of the total amount collected from the sale of
athletic event drawing tickets.
(g) Designated charitable organization.--The affiliated
nonprofit organization conducting the athletic event drawing
shall disclose to each ticket purchaser the designated
charitable organization for which the athletic event drawing is
being conducted.
(h) Eligibility.--In order to receive proceeds from 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. AN INSTITUTION OF HIGHER EDUCATION THAT IS QUALIFIED
FOR AN EXEMPTION UNDER SECTION 501(C)(3) OF THE INTERNAL REVENUE
CODE OF 1986 AND HAS BEEN IN EXISTENCE AND FULFILLING ITS
PURPOSE FOR AT LEAST TWO YEARS PRIOR TO THE DRAWING MAY CONDUCT
AN ATHLETIC EVENT DRAWING AS THE AFFILIATED NONPROFIT
ORGANIZATION AND MAY RECEIVE THE PROCEEDS THEREFROM AS THE
DESIGNATED CHARITABLE ORGANIZATION AT ANY HOME GAME OR
CHARITABLE EVENT OF ANY OF ITS OWN COLLEGIATE ATHLETIC TEAMS
PROVIDED THAT THE PROCEEDS ARE USED EXCLUSIVELY FOR PUBLIC
INTEREST PURPOSES OR FOR PURPOSES PERMITTED UNDER SUBSECTION
(F).
(i) Unclaimed prizes.--An athletic event drawing prize
remaining unclaimed by a winner at the end of the 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 athletic event
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drawing was conducted.
(j) Additional recordkeeping.--The department may require
additional recordkeeping or accountability measures for athletic
event drawings.
(k) 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).
(L) PROHIBITIONS.--
(1) NO PERSON WHO HAS BEEN CONVICTED OF A FELONY OR OF A
VIOLATION OF THE ACT OF JULY 10, 1981 (P.L.214, NO.67), KNOWN
AS THE BINGO LAW, OR THE ACT OF DECEMBER 19, 1988 (P.L.1262,
NO.156), KNOWN AS THE LOCAL OPTION SMALL GAMES OF CHANCE ACT,
OR THIS ACT OR ANY COMPARABLE FEDERAL OR STATE LAW SHALL HAVE
A PECUNIARY INTEREST IN THE OPERATION OF OR IN PROCEEDS FROM
AN ATHLETIC EVENT DRAWING.
(2) NO PERSON WHO HAS BEEN CONVICTED OF A FELONY IN A
FEDERAL OR STATE COURT WITHIN THE PAST FIVE YEARS OR HAS BEEN
CONVICTED IN A FEDERAL OR STATE COURT WITHIN THE PAST 10
YEARS OF A VIOLATION OF THE BINGO LAW, THE LOCAL OPTION SMALL
GAMES OF CHANCE ACT OR THIS ACT MAY MANAGE, SET UP, SUPERVISE
OR PARTICIPATE IN THE OPERATION OF AN ATHLETIC EVENT DRAWING.
(3) NO PERSON UNDER 18 YEARS OF AGE MAY OPERATE OR PLAY
AN ATHLETIC EVENT DRAWING.
(M) ENFORCEMENT.--
(1) THE COUNTY AUTHORITY OF THE COUNTY IN WHICH AN
ATHLETIC EVENT DRAWING IS CONDUCTED MAY ENFORCE THE
PROVISIONS OF THIS ACT AND MAY IMPOSE CIVIL PENALTIES UNDER
SUBSECTION (N).
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(2) THE DISTRICT ATTORNEY OF THE COUNTY IN WHICH THE
ATHLETIC EVENT DRAWING IS CONDUCTED SHALL INVESTIGATE ALLEGED
VIOLATIONS OF THIS ACT. IF THE DISTRICT ATTORNEY FINDS
PROBABLE CAUSE TO BELIEVE THAT A CRIMINAL VIOLATION HAS
OCCURRED, THE DISTRICT ATTORNEY MAY FILE CRIMINAL CHARGES AND
PROSECUTE THE COMPLAINT AGAINST THE ALLEGED VIOLATOR IN THE
COURT OF COMMON PLEAS OF THE COUNTY EXCEPT IN COUNTIES OF THE
FIRST CLASS WHERE THE COMPLAINT MAY BE FILED IN THE MUNICIPAL
COURT.
(3) NOTHING IN THIS ACT MAY RESTRICT OR LIMIT THE POWER
OF A STATE, COUNTY OR LOCAL LAW ENFORCEMENT OFFICIAL TO
CONDUCT INVESTIGATIONS AND FILE CRIMINAL CHARGES UNDER THIS
ACT.
(4) THE DISTRICT ATTORNEY MAY REQUIRE AN AFFILIATED
NONPROFIT ORGANIZATION TO PRODUCE ITS BOOKS, ACCOUNTS AND
RECORDS RELATING TO THE CONDUCT OF ATHLETIC EVENT DRAWINGS IN
ORDER TO DETERMINE IF A VIOLATION OF THIS ACT HAS OCCURRED.
AFFILIATED NONPROFIT ORGANIZATIONS SHALL ALSO BE REQUIRED,
UPON REQUEST, TO PROVIDE THEIR BOOKS, ACCOUNTS AND RECORDS
RELATING TO THE CONDUCT OF ATHLETIC EVENT DRAWINGS TO THE
COUNTY AUTHORITY OR TO A LAW ENFORCEMENT AGENCY OR OFFICIAL.
(N) CIVIL PENALTIES.--AN AFFILIATED NONPROFIT ORGANIZATION
THAT VIOLATES THE PROVISIONS OF THIS ACT SHALL BE SUBJECT TO THE
FOLLOWING CIVIL PENALTIES:
(1) FOR AN INITIAL VIOLATION, UP TO $500.
(2) FOR A SECOND VIOLATION, UP TO $1,000.
(3) FOR A THIRD OR SUBSEQUENT VIOLATION, UP TO $1,500.
(O) CRIMINAL PENALTIES.--
(1) AN AFFILIATED NONPROFIT ORGANIZATION VIOLATING THE
PROVISIONS OF THIS ACT SHALL BE GUILTY OF A SUMMARY OFFENSE
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AND, UPON CONVICTION THEREOF, SHALL BE SENTENCED TO PAY A
FINE NOT EXCEEDING $1,000 FOR A FIRST OFFENSE AND $1,500 FOR
A SUBSEQUENT OFFENSE.
(2) A PERSON WHO CONDUCTS OR ASSISTS IN THE CONDUCTING
OF AN ATHLETIC EVENT DRAWING IN VIOLATION OF THE PROVISIONS
OF THIS ACT IS GUILTY OF A SUMMARY OFFENSE FOR A FIRST
VIOLATION. A SECOND VIOLATION OF THIS ACT SHALL BE PUNISHABLE
AS A MISDEMEANOR OF THE THIRD DEGREE. A THIRD OR SUBSEQUENT
VIOLATION SHALL BE PUNISHABLE AS A MISDEMEANOR OF THE FIRST
DEGREE.
(3) A PERSON COMMITS A MISDEMEANOR OF THE FIRST DEGREE
IF, WITH INTENT TO PREVENT AN ATHLETIC EVENT DRAWING FROM
BEING CONDUCTED IN ACCORDANCE WITH THE REQUIREMENTS OF THIS
ACT OR THE RULES AND USAGES GOVERNING THE ATHLETIC EVENT
DRAWING, THE PERSON:
(I) CONFERS OR OFFERS OR AGREES TO CONFER ANY
BENEFIT UPON OR THREATENS ANY INJURY TO A PARTICIPANT OR
OTHER PERSON ASSOCIATED WITH THE ATHLETIC EVENT DRAWING;
(II) TAMPERS WITH ANY PERSON OR ATHLETIC EVENT
DRAWING; OR
(III) SOLICITS, ACCEPTS OR AGREES TO ACCEPT ANY
BENEFIT.
Section 5. Repeals.
(a) Declaration.--The General Assembly declares that the
repeal under subsection (b) is necessary to effectuate this act.
(b) Repeal.--The following provisions of the act of December
19, 1988 (P.L.1262, No.156), known as the Local Option Small
Games of Chance Act, are repealed:
(1) The definitions of "major league sports drawing" and
"major league sports team" DEFINITION OF "MAJOR LEAGUE SPORTS
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DRAWING" in section 103.
(2) Section 304.1.
Section 6. Effective date.
This act shall take effect immediately IN 30 DAYS.
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