Trial Engrossment of Amendment A09832 to House Bill 1313 P.N. 3868, Regular Session 2015-2016

A09832

THE GENERAL ASSEMBLY OF PENNSYLVANIA

HOUSE BILL

No.

1313

Session of

2015

INTRODUCED BY MOUL, SNYDER, PICKETT, MILLARD, GROVE AND KLUNK,

SEPTEMBER 29, 2015

AS REPORTED FROM COMMITTEE ON GAMING OVERSIGHT, HOUSE OF

REPRESENTATIVES, AS AMENDED, SEPTEMBER 20, 2016

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, for games of chance permitted,; IN GAMES OF

CHANCE, FURTHER PROVIDING for prize limits for distributor

licenses, AND FOR SALES LIMITED, PROVIDING FOR PULL-TAB DEAL,

FURTHER PROVIDING FOR DISTRIBUTOR LICENSES AND FOR MAJOR

LEAGUE SPORTS DRAWING, PROVIDING FOR AIRPORT 50/50 DRAWING,

FURTHER PROVIDING for registration of manufacturers and, for

REGULATIONS OF DEPARTMENT, FOR licensing of eligible

organizations; and imposing a club licensee tax. AND FOR

SPECIAL PERMITS AND PROVIDING FOR SPECIAL LOCATION PERMITS,

FOR VERTICAL WHEEL GAME PERMITS AND FOR POKER RUN PERMITS; IN

CLUB LICENSEES, FURTHER PROVIDING FOR CLUB LICENSEE,

PROVIDING FOR DEFINITION AND FOR CLUB LICENSEE, FURTHER

PROVIDING FOR DISTRIBUTION OF PROCEEDS AND PROVIDING FOR CLUB

LICENSEE LOCATION PERMITS; IN ENFORCEMENT, FURTHER PROVIDING

FOR REVOCATION OF LICENSES AND FOR ENFORCEMENT; AND, IN

TAVERN GAMING, FURTHER PROVIDING FOR DEFINITIONS, FOR

LICENSES, FOR APPLICATION, FOR APPROVAL, FOR TAVERN RAFFLE,

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. The definition of "games of chance" in section

103 of the act of December 19, 1988 (P.L.1262, No.156), known as

the Local Option Small Games of Chance Act, amended November 27,

2013 (P.L.1045, No.90) and November 27, 2013 (P.L.1062, No.92),

is amended and the section is amended by adding definitions to

read:

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, AMENDED NOVEMBER 27, 2013 (P.L.1045, NO.90), IS

AMENDED TO READ:

SECTION 102. LEGISLATIVE INTENT.

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.

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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. THE DEFINITIONS OF "AFFILIATED NONPROFIT

ORGANIZATION," "GAMES OF CHANCE," "MAJOR LEAGUE SPORTS DRAWING,"

"MAJOR LEAGUE SPORTS TEAM," "PULL-TAB" AND "TAVERN GAMES" IN

SECTION 103 OF THE ACT, AMENDED OR ADDED NOVEMBER 27, 2013

(P.L.1045, NO.90) AND NOVEMBER 27, 2013 (P.L.1062, NO.92), ARE

AMENDED AND THE SECTION IS AMENDED BY ADDING DEFINITIONS TO

READ:

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 OR AN INSTITUTION OF HIGHER

EDUCATION 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.

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"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

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.

(5) A COLLEGIATE TEAM.

* * *

" B ingo." As defined in section 3 of the act of July 10, 1981

(P.L.214, No.67), known as the Bingo Law.

"Coin auction." A game in which a participant buys a

numbered paddle for a chance to bid on a donated prize with the

winner determined by a random drawing of corresponding numbers.

"COLLEGIATE TEAM." A SPORTS TEAM COMPRISED OF STUDENT

ATHLETES THAT IS ORGANIZED AND CONTROLLED BY AN INSTITUTION OF

HIGHER EDUCATION.

* * *

"EVENT GAME." A TYPE OF PULL-TAB GAME, PLAYED simultaneously

with bingo and WITH OR WITHOUT A SEAL CARD, IN WHICH CERTAIN

PRIZES ARE DETERMINED BY THE DRAW OF A BINGO BALL OR SOME OTHER

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APPROVED SPECIFIED EVENT WHICH RANDOMLY SELECTS NUMBERS OR

SYMBOLS THAT CORRESPOND TO THE NUMBERS OR SYMBOLS PRINTED BY THE

MANUFACTURER ON THE PULL-TAB AND WHICH GAME SATISFIES THE

FOLLOWING:

(1) NO EVENT PULL-TAB MAY BE BOTH AN INSTANT WINNER AND

A HOLD CARD.

(2) THE GAME MAY NOT CONTAIN DUPLICATE HOLD

COMBINATIONS. IF THE GAME CONTAINS MULTIPLE SETS OF HOLD

COMBINATIONS, EACH SET MUST BE DISTINGUISHABLE BY COLOR OR

DISTINGUISHING FEATURES.

(3) AN EVENT PULL-TAB TICKET MAY CONTAIN MORE THAN ONE

HOLD COMBINATION.

(4) THE NUMBER OF WINNERS AND THE PRIZE AMOUNT MUST BE

BUILT INTO THE PAYOUT STRUCTURE FOR THE GAME BY THE

MANUFACTURER.

* * *

"Games of chance." Punchboards, daily drawings, weekly

drawings, 50/50 drawings, raffles, tavern games, pools, race

night games, POKER RUNS, coin auctions, vertical wheel games ,

event games and pull-tabs, as defined in this act, provided that

no such game, except vertical wheel games and event games , shall

be played by or with the assistance of any mechanical or

electrical devices or media other than a dispensing machine or

passive selection device and further provided that the

particular chance taken by any person in any such game shall not

be made contingent upon any other occurrence or the winning of

any other contest, but shall be determined solely at the

discretion of the purchaser. This definition shall not be

construed to authorize any other form of gambling currently

prohibited under any provision of 18 Pa.C.S. (relating to crimes

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and offenses) or authorized under 4 Pa.C.S. (relating to

amusements). Nothing in this act shall be construed to authorize

games commonly known as "slot machines" or "video poker" or

other games regulated by the Pennsylvania Gaming Control Board.

* * *

"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.

* * *

["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).

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(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.]

* * *

"POKER RUN." A GAME OPERATED BY ONE OR MORE LICENSED

ELIGIBLE ORGANIZATIONS IN WHICH A PARTICIPANT PURCHASES A

SCORECARD TO PARTICIPATE IN A GAME WHERE ALL OF THE FOLLOWING

OCCURS:

(1) A PARTICIPANT MEETS AT A DESIGNATED LOCATION TO

RECEIVE INSTRUCTIONS FOR THE EVENT.

(2) EACH PARTICIPANT RECEIVES A DETAILED EXPLANATION OF

THE GAME DESTINATIONS AND A SCORE CARD TO BE COMPLETED AS THE

PARTICIPANT PROGRESSES TO EACH LOCATION WITHIN THE COUNTY.

(3) AT EACH DESIGNATED LOCATION ON THE RUN ROUTE, THE

PARTICIPANT DRAWS OR IS DEALT A PLAYING CARD AT RANDOM. THE

CARD WHICH IS DRAWN OR DEALT IS RECORDED ON THE PARTICIPANT'S

SCORE CARD.

(4) THE PARTICIPANT OR PARTICIPANTS WHO HAVE OBTAINED

THE HIGHEST HAND OR HANDS, ACCORDING TO THE INSTRUCTIONS

ESTABLISHED FOR THE EVENT UNDER PARAGRAPH (1), WIN A PRIZE OR

PRIZES, WHICH IS DETERMINED AT THE FINAL LOCATION ON THE RUN

ROUTE.

FOR PURPOSES OF THIS ACT, THE TERM IS NOT A "TABLE GAME" AS

DEFINED IN 4 PA.C.S. § 1103 (RELATING TO DEFINITIONS).

* * *

"PROGRESSIVE PULL-TAB GAME." A GAME OF ONE OR MORE PULL-TAB

DEALS, EACH BEARING A DIFFERENT SERIAL NUMBER THAT, IN ADDITION

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TO ANY CONSOLATION PRIZE AWARDED BY A WINNING TICKET, OFFERS A

WINNING PLAYER A CHANCE TO SELECT AND OPEN A SEALED TAB ON THE

FLARE THAT ACCOMPANIES THE GAME TO DETERMINE IF THE JACKPOT

PRIZE HAS BEEN WON, AND THE JACKPOT PRIZE OF WHICH GAME IS

PREDETERMINED BY THE MANUFACTURER AND CONSISTS OF AN AMOUNT TO

WHICH EACH DEAL OF THE GAME WHERE THE JACKPOT PRIZE IS NOT WON

CONTRIBUTES TO AN ACCUMULATING JACKPOT PRIZE LEVEL.

* * *

"PULL-TAB." A SINGLE FOLDED OR BANDED TICKET OR A STRIP

TICKET OR CARD WITH A FACE COVERED TO CONCEAL ONE OR MORE

NUMBERS OR SYMBOLS, WHERE ONE OR MORE OF EACH SET OF TICKETS OR

CARDS HAS BEEN DESIGNATED IN ADVANCE AS A WINNER. THE TERM

INCLUDES AN EVENT GAME, a SUBSET PULL-TAB GAME AND PROGRESSIVE

PULL-TAB GAME.

* * *

"SUBSET PULL-TAB GAME." A GAME CONSISTING OF A SINGLE PULL-

TAB DEAL OF TICKETS HAVING THE SAME SERIAL NUMBER THAT IS

SEGREGATED AND PACKAGED BY THE MANUFACTURER INTO SMALLER

SUBDEALS, EACH OF WHICH IS PLAYED SEPARATELY FROM THE REST OF

THE SUBSETS DURING THE GAME, AND THE WINNING TICKETS PURCHASED

BY A PLAYER OF WHICH GAME WILL BEAR A DESIGNATION THAT ENTITLES

THE PLAYER TO SELECT AND OPEN A SEALED TAB ON THE FLARE WHICH

ACCOMPANIES THE GAME TO DETERMINE THE PRIZE LEVEL TO BE AWARDED

TO THE PLAYER.

"TAVERN GAMES." PULL-TABS, RACE NIGHT GAMES, TAVERN WEEKLY

DRAWINGS, TAVERN DAILY DRAWINGS AND TAVERN RAFFLES.

* * *

"Vertical wheel game." A game in which a participant places

a coin or token on a color, number or word or purchases a ticket

containing a color, number or word and watches a spinning

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vertical wheel until the pointer of the wheel rests on a section

of the wheel designating a winner. VERTICAL WHEEL GAME CHANCES

MAY NOT BE SOLD FOR AN AMOUNT IN EXCESS OF $10. FOR THE PURPOSES

OF THIS ACT, THE TERM IS NOT A "TABLE GAME" AS DEFINED IN 4

PA.C.S. § 1103 (RELATING TO DEFINITIONS).

* * *

Section 2. Section 301 of the act, amended November 27, 2013

(P.L.1045, No.90) and November 27, 2013 (P.L.1062, No.92), is

amended to read:

Section 301. Games of chance permitted.

[Every] (a) General rule.--Except as otherwise provided in

subsection (b), every eligible organization to which a license

has been issued under the provisions of this chapter may conduct

games of chance for the purpose of raising funds for public

interest purposes. Except as provided in Chapter 5, all proceeds

of a licensed eligible organization shall be used exclusively

for public interest purposes, for the purchase of games of

chance or for the payment of the license fee, as required by

this act. An eligible organization whose primary purpose is the

promotion of a public interest may utilize the proceeds from

small games of chance to fulfill that purpose.

(b) Exception.--A club licensee may not operate a vertical

wheel game or coin action.

Section 2.1. Section 301 of the act, amended November 27,

2013 (P.L.1045, No.90) and November 27, 2013 (P.L.1062, No.92),

is amended to read:

Section 301. Games of chance permitted.

[Every] (a) General rule.--Except as otherwise provided in

subsection (b), every eligible organization to which a license

has been issued under the provisions of this chapter may conduct

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games of chance for the purpose of raising funds for public

interest purposes. Except as provided in Chapter 5, all proceeds

of a licensed eligible organization shall be used exclusively

for public interest purposes, for the purchase of games of

chance or for the payment of the license fee, as required by

this act. An eligible organization whose primary purpose is the

promotion of a public interest may utilize the proceeds from

small games of chance to fulfill that purpose.

(b) Exception.--An event game may only be operated by a

licensed eligible organization that:

(1) is an association as defined in section 3 of the act

of July 10, 1981 (P.L.214, No.67), known as the Bingo Law;

and

(2) holds a bingo license issued to the association

under section 5 of the Bingo Law.

Section 3. Sections 302, 304(i) and 305(d) AND 303(B) of the

act, amended or added November 27, 2013 (P.L.1062, No.92), are

amended to read:

Section 302. Prize limits.

(a) Individual prize limit.--Except as provided under

(a) Individual prize limit.--

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

(D.1) AND (D.2), the maximum prize which may be awarded for any

single chance shall be $2,000.

(2) For an event game, the maximum prize limit contained

in paragraph (1) shall only apply to the prizes awarded

through the play of the event game and shall not apply to the

prizes awarded through the play of bingo that is

simultaneously conducted with the event game.

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

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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] CALENDAR YEAR 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] CALENDAR YEAR.

(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

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

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

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(D.2) EXCEPTION FOR POKER RUNS.--NOTWITHSTANDING SUBSECTION

(A), A LICENSED ELIGIBLE ORGANIZATION MAY CONDUCT A POKER RUN

UNDER SECTION 311 AND AWARD A PRIZE OR PRIZES VALUED IN EXCESS

OF $2,000, SUBJECT TO THE FOLLOWING CONDITIONS:

(1) THE LICENSING AUTHORITY HAS ISSUED A POKER RUN PERMIT TO

EACH PARTICIPATING ELIGIBLE ORGANIZATION UNDER SECTION 311.

(2) ONLY ONE POKER RUN MAY BE CONDUCTED UNDER EACH POKER RUN

PERMIT ISSUED UNDER SECTION 311.

(3) THE TOTAL OF ALL PRIZES AWARDED FOR A SINGLE POKER RUN

MAY NOT EXCEED $15,000.

(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). The prize limitation contained in subsection (b)

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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 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 the prize limitation under

subsection (b) 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 303. SALES LIMITED.

* * *

(B) LIMITATION.--NO GAME OF CHANCE, OTHER THAN A RAFFLE

UNDER SECTION 302(D) OR A POKER RUN UNDER SECTION 302(D.2),

SOLD, OFFERED FOR SALE OR FURNISHED TO A LICENSED ELIGIBLE

ORGANIZATION FOR USE WITHIN THIS COMMONWEALTH SHALL CONTAIN,

PERMIT, DEPICT OR DESIGNATE A PRIZE HAVING A PRIZE LIMIT IN

EXCESS OF $2,000.

SECTION 4. THE ACT IS AMENDED BY ADDING A SECTION TO READ:

SECTION 303.2. PULL-TAB DEAL.

NOTHING IN THIS ACT SHALL BE CONSTRUED:

(1) TO PROHIBIT THE SALE OF A PULL-TAB DEAL WHICH

CONTAINS MORE THAN 4,000 INDIVIDUAL PULL-TABS.

(2) TO PLACE ANY RESTRICTION ON THE NUMBER OF PULL-TABS

THAT MAY BE PUT OUT FOR PUBLIC PLAY AS PART OF A SINGLE DEAL.

SECTION 5. SECTIONS 304(I) AND 305(D) OF THE ACT, AMENDED

NOVEMBER 27, 2013 (P.L.1062, NO.92), ARE AMENDED TO READ:

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Section 304. Distributor licenses.

* * *

(i) Exception.--This section shall not apply to the

manufacture or distribution of raffle tickets, 50/50 drawings,

daily drawings, weekly drawings, POKER RUNS, coin auctions,

vertical wheel games , TAVERN RAFFLES, TAVERN DAILY DRAWINGS,

TAVERN WEEKLY DRAWINGS or pools.

SECTION 6. SECTION 304.1 OF THE ACT, AMENDED OR ADDED

OCTOBER 24, 2012 (P.L.1462, NO.184) AND NOVEMBER 27, 2013

(P.L.1045, NO.90), IS AMENDED TO READ:

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,

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.

(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 OR CAR RACE OF THE [MAJOR LEAGUE SPORTS] ATHLETIC

A09832 - 14 -

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, EXCEPT AS PROVIDED FOR IN

SUBSECTION (B.3), 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.

(B.3) OUTSIDE SALES.--NOTWITHSTANDING SUBSECTION (B.2),

ATHLETIC EVENT DRAWING TICKETS MAY BE SOLD PRIOR TO A HOME GAME

OR CAR RACE IN AN OFFICIALLY DESIGNATED PARKING AREA ADJACENT TO

THE ARENA, STADIUM, GRANDSTAND OR BLEACHERS OR SIMILAR FACILITY

WHERE THE HOME GAME OR CAR RACE IS BEING CONDUCTED AND WHICH IS

NOT SEPARATED BY A HIGHWAY OR STREET, UNLESS THE HIGHWAY OR

STREET IS ADJACENT TO THE ARENA, STADIUM, GRANDSTAND, BLEACHERS

OR SIMILAR FACILITY.

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]

A09832 - 15 -

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

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]

A09832 - 16 -

AN ATHLETIC EVENT DRAWING.

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

ADDITIONAL RECORDKEEPING OR ACCOUNTABILITY MEASURES FOR [MAJOR

LEAGUE SPORTS] ATHLETIC EVENT DRAWINGS.

SECTION 7. 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.

(B) 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 HAVE ACCESS.

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.

(D) 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) ELIGIBILITY.--IN ORDER TO RECEIVE PROCEEDS FROM AN

A09832 - 17 -

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 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.

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

303(B), 308 AND 704 SHALL NOT APPLY TO AN AIRPORT 50/50 DRAWING.

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

ADDITIONAL RECORDKEEPING OR ACCOUNTABILITY MEASURES FOR AIRPORT

50/50 DRAWINGS.

SECTION 8. SECTION 305(D) OF THE ACT, AMENDED NOVEMBER 27,

2013 (P.L.1062, NO.92), IS AMENDED TO READ:

Section 305. Registration of manufacturers.

* * *

(d) Exception.--This section shall not apply to the

manufacture or distribution of raffle tickets, 50/50 drawings,

daily drawings, weekly drawings, POKER RUNS, coin auctions,

vertical wheel games , TAVERN RAFFLES, TAVERN DAILY DRAWINGS,

TAVERN WEEKLY DRAWINGS or pools.

SECTION 9. SECTION 306 OF THE ACT, AMENDED OR ADDED OCTOBER

24, 2012 (P.L.1462, NO.184) AND NOVEMBER 27, 2013 (P.L.1062,

NO.92), IS AMENDED TO READ:

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SECTION 306. REGULATIONS OF DEPARTMENT.

(A) AUTHORIZATION.--THE DEPARTMENT SHALL PROMULGATE

REGULATIONS TO:

(1) IMPOSE MINIMUM STANDARDS [AND RESTRICTIONS]

APPLICABLE TO GAMES OF CHANCE MANUFACTURED FOR SALE IN THIS

COMMONWEALTH[, WHICH MAY INCLUDE STANDARDS AND RESTRICTIONS

WHICH SPECIFY THE MAXIMUM NUMBER OF CHANCES AVAILABLE TO BE

SOLD FOR ANY SINGLE GAME OF CHANCE OR PRIZE AND SUCH OTHER

STANDARDS AND RESTRICTIONS] AS THE DEPARTMENT DEEMS NECESSARY

FOR THE PURPOSES OF THIS CHAPTER. THE DEPARTMENT SHALL

CONSIDER STANDARDS ADOPTED BY THE NATIONAL ASSOCIATION OF

GAMBLING REGULATORY AGENCIES AND OTHER STANDARDS COMMONLY

ACCEPTED IN THE INDUSTRY.

(2) ESTABLISH PROCEDURES BY WHICH MANUFACTURERS MAY

LICENSURE ON FORMS WHICH THE DEPARTMENT SHALL PROVIDE.

PROCEDURES SHALL INCLUDE A REQUIREMENT THAT MANUFACTURER AND

DISTRIBUTOR APPLICANTS PROVIDE CRIMINAL HISTORY RECORD

INFORMATION OBTAINED FROM THE PENNSYLVANIA STATE POLICE UNDER

18 PA.C.S. § 9121(B) (RELATING TO GENERAL REGULATIONS) FOR

EACH OFFICER AND MANAGER OF THE MANUFACTURER'S OR

DISTRIBUTOR'S ORGANIZATION AND FOR ANY OTHER INDIVIDUAL

SPECIFIED BY THE DEPARTMENT. AS USED IN THIS PARAGRAPH, THE

TERM "CRIMINAL HISTORY RECORD INFORMATION" HAS THE MEANING

GIVEN IN 18 PA.C.S. § 9102 (RELATING TO DEFINITIONS).

(3) PROVIDE FOR THE SUSPENSION OR REVOCATION OF

DISTRIBUTION LICENSES OR MANUFACTURER CERTIFICATES FOR

VIOLATIONS OF THIS ACT OR REGULATIONS OF THE DEPARTMENT.

(3.1) ESTABLISH PROCEDURES TO ENSURE THAT RACE NIGHT

GAMES ARE SECURE, RANDOM AND TOTALLY DEPENDENT UPON CHANCE.

A09832 - 19 -

(3.2) NOTHING IN THIS ACT SHALL BE CONSTRUED TO REQUIRE

GAMES OF CHANCE DISTRIBUTED FOR PLAY IN THIS COMMONWEALTH TO

BE APPROVED BY THE DEPARTMENT.

(4) CARRY OUT OTHER PROVISIONS OF THIS ACT.

(B) LIMITATION ON RECORDKEEPING REQUIREMENTS.--THIS SECTION

SHALL NOT BE CONSTRUED TO AUTHORIZE THE DEPARTMENT TO PROMULGATE

REGULATIONS PROVIDING FOR RECORDKEEPING REQUIREMENTS FOR

LICENSED ELIGIBLE ORGANIZATIONS WHICH REQUIRE UNREASONABLE OR

UNNECESSARY INFORMATION OR A REPETITIOUS LISTING OF INFORMATION.

THE DEPARTMENT SHALL STRIVE TO KEEP SUCH RECORDKEEPING

REQUIREMENTS FROM BEING AN UNDUE HARDSHIP OR BURDEN ON LICENSED

ELIGIBLE ORGANIZATIONS. [EXCEPT AS PROVIDED UNDER SECTION

701(B), THE] THE DEPARTMENT MAY NOT REQUIRE THE RETENTION OF

RECORDS FOR A PERIOD IN EXCESS OF TWO YEARS. IF AN INDIVIDUAL

PRIZE IS IN EXCESS OF $600, THE RECORD SHALL INCLUDE THE NAME

AND ADDRESS OF THE WINNER. AN ELIGIBLE ORGANIZATION SHALL

PROVIDE EACH WINNER WITH A RECEIPT OF THE VALUE OF THE PRIZE

WHEN THE PRIZE EXCEEDS $600.

Section 4 10. Section 307(a)(1), (b) and (b.1), (B.1) AND

(B.2) of the act, amended November 27, 2013 (P.L.1062, No.92),

are amended and the section is amended by adding a subsection to

read:

Section 307. Licensing of eligible organizations.

(a) License required.--The following shall apply:

(1) An eligible organization shall not conduct or

operate games of chance unless the eligible organization has

obtained a valid license as follows:

(i) A regular license which must be renewed

annually.

A09832 - 20 -

(ii) A triennial license which must be renewed every

three years.

[(ii)] (iii) A monthly license which permits the

eligible organization to conduct games of chance for a

30-consecutive-day period.

* * *

(b) Issuance.--The licensing authority shall issue a license

within 30 days of the submission of an application by an

eligible organization that meets the requirements under this

chapter. Upon issuance, the licensing authority shall provide

the eligible organization with a unique license number , the

first number or numbers of which shall be the uniform county

code numbers used by the Department of Revenue for the filing of

tax returns .

(b.1) Fee.--The [license fee to be charged to each eligible

organization for a regular license shall be $125. The license

fee to be charged for a monthly license shall be $25. A regular

license must be renewed annually. The fee shall be used by the

licensing authority to administer this act.] licensing authority

shall charge a license fee to each eligible organization to be

used by the licensing authority to administer this act. The fees

shall be as follows:

(1) A regular license fee shall be $125.

(2) A triennial license fee shall be $375.

(3) A monthly license fee shall be $25.

(B.2) LOCATION.--[AN] EXCEPT AS PROVIDED FOR IN SECTION 311

AND NOTWITHSTANDING SECTIONS 309 AND 505.2, AN ELIGIBLE

ORGANIZATION THAT HOLDS A LICENSE UNDER SUBSECTION (A) AND THAT

IS NOT A CLUB LICENSEE MAY CONDUCT SMALL GAMES OF CHANCE IN THE

COUNTY WHERE THE LICENSE IS ISSUED AT A PREMISES WHICH IS THE

A09832 - 21 -

OPERATING SITE OF THE ELIGIBLE ORGANIZATION OR AT A PREMISES OR

OTHER LOCATION NOT PROHIBITED BY LOCAL ORDINANCE, AND FOR WHICH

THE TREASURER HAS BEEN NOTIFIED. THE FOLLOWING SHALL APPLY:

(1) NO MORE THAN THREE LICENSEES, INCLUDING THE LICENSEE

THAT OWNS OR LEASES THE PREMISES, MAY CONDUCT SMALL GAMES OF

CHANCE SIMULTANEOUSLY AT A PREMISES OR LOCATION.

(2) A LICENSEE SHALL ENSURE THAT THE CONDUCT OF SMALL

GAMES OF CHANCE BY DIFFERENT ORGANIZATIONS ARE SEPARATE AND

CLEARLY IDENTIFIED WITHIN A PREMISES OR LOCATION.

(3) A LICENSEE THAT IS NOT A CLUB LICENSEE MAY CONDUCT

GAMES OF CHANCE SIMULTANEOUSLY WITH THE CONDUCT OF GAMES OF

CHANCE BY A CLUB LICENSEE ON NOT MORE THAN THREE OCCASIONS

COVERING A TOTAL OF SEVEN DAYS DURING THE YEAR.

(4) THE FOLLOWING SHALL APPLY:

(I) NOTWITHSTANDING PARAGRAPH (1), IF A CLUB

LICENSEE IS UNABLE TO CONDUCT GAMES OF CHANCE AT THE

LOCATION LISTED ON ITS APPLICATION AND LICENSE DUE TO

NATURAL DISASTER, FIRE OR OTHER CIRCUMSTANCE THAT RENDERS

THE LOCATION UNUSABLE, THE CLUB LICENSEE MAY SUBMIT A

WRITTEN REQUEST TO THE DISTRICT ATTORNEY TO CONDUCT GAMES

OF CHANCE IN A DIFFERENT LOCATION, INCLUDING THE LICENSED

PREMISES OF ANOTHER ELIGIBLE ORGANIZATION.

(II) A REQUEST UNDER SUBPARAGRAPH (I) MUST INCLUDE

THE CHANGE IN THE LOCATION AND THE DATES AND TIMES THE

GAMES OF CHANCE WILL BE OPERATED AT THE ALTERNATIVE

LOCATION.

(III) THE DISTRICT ATTORNEY SHALL APPROVE OR DENY

THE REQUEST AND SHALL ESTABLISH A LIMIT ON THE DURATION

OF THE AUTHORIZATION TO CONDUCT GAMES OF CHANCE AT THE

ALTERNATIVE LOCATION. FOLLOWING THE EXPIRATION OF THE

A09832 - 22 -

AUTHORIZATION PERIOD, THE CLUB LICENSEE MUST RETURN TO

THE LOCATION SPECIFIED IN ITS APPLICATION AND LICENSE OR

APPLY TO THE LICENSING AUTHORITY FOR A NEW PERMANENT

LOCATION. THE DISTRICT ATTORNEY MAY STIPULATE ADDITIONAL

REQUIREMENTS AS A CONDITION OF APPROVAL.

(IV) IF A CLUB LICENSEE PERMITS ANOTHER CLUB

LICENSEE TO USE ITS LICENSED PREMISES UNDER THIS

PARAGRAPH TO CONDUCT GAMES OF CHANCE, THE HOST CLUB

LICENSEE MUST CEASE ITS OPERATION OF GAMES OF CHANCE

DURING THE TIME THE CLUB LICENSEE UTILIZING ITS PREMISES

IS CONDUCTING ITS GAMES OF CHANCE.

* * *

(b.5) License renewal.--A regular license or triennial

license may be renewed by the eligible organization up to 90

days prior to the expiration of the license. A renewed regular

or triennial license shall contain the same unique license

number provided to the eligible organization under subsection

(b) , the first number or numbers of which shall be the uniform

county code numbers used by the Department of Revenue for the

filing of tax returns .

* * *

Section 5. The act is amended by adding a section to read:

Section 501.1. Club licensee tax.

(a) Imposition.--A $5 tax is imposed on each set bearing a

common serial number of a game of chance sold by a licensed

distributor to a club licensee within this Commonwealth.

(b) Collection.--The tax imposed under subsection (a) shall

be collected by the licensed distributor from the club licensee

in an instance where the game of chance is required to be

purchased from a licensed distributor under this act and must be

A09832 - 23 -

paid to the Commonwealth.

(1) A licensed distributor subject to this section shall

file with the department, upon a form prescribed by the

department, a club licensee tax return. The return must be

filed under oath or affirmation of an authorized officer of

the licensed distributor reporting the total number of games

of chance sold to club licensees and the tax due under this

section in the prior calendar month. A return is due by the

20th day following the end of the reporting period.

(2) The return must include the following:

(i) The total number of games of chance sold to club

licensees in the prior calendar month, which must be

calculated by indicating the number of each type of game

of chance sold.

(ii) Calculation of the tax due under this section.

(iii) Other information required by the department.

(d) Payment.--A licensed distributor required to collect the

tax under this section shall remit the tax to the department

when the return in subsection (c) is made.

(e) Penalties and interest.--If the licensed distributor

fails to file the return required under subsection (c) or fails

to pay the tax imposed under subsection (a), the department may

do the following:

(1) assess the amount of tax due;

(2) impose and assess an administrative penalty equal to

10% of the tax due but unpaid for each quarter or fraction

thereof that the tax remains unpaid together with interest at

the rate established under section 806 of the act of April 9,

1929 (P.L.343, No.176), known as The Fiscal Code, on the tax

A09832 - 24 -

from the time the tax became due. The penalty provided in

this paragraph must be added to the tax and assessed and

collected at the same time and in the same manner as a part

of the tax. Unless otherwise specified, the tax shall be

assessed, collected and enforced by the department under the

provisions of Article II of the act of March 4, 1971 (P.L.6,

No.2), known as the Tax Reform Code of 1971; or

(3) revoke a licensed distributor's license.

(f) Funds held in trust.--The funds owed to the Commonwealth

under this section shall be held in trust by a licensed

distributor.

(g) Deposit.--Beginning in fiscal year 2015-2016, the taxes

imposed by this section shall be deposited as follows:

(1) Ninety percent shall be deposited into the General

Fund.

(2) Ten percent shall be deposited into the State Stores

Fund and allocated to the Pennsylvania State Police for

liquor control enforcement expenses.

SECTION 11. SECTION 308 OF THE ACT, AMENDED FEBRUARY 2, 2012

(P.L.7, NO.2) AND NOVEMBER 27, 2013 (P.L.1062, NO.92), IS

AMENDED TO READ:

SECTION 308. SPECIAL RAFFLE PERMITS.

(A) ISSUANCE AND FEE.--THE LICENSING AUTHORITY SHALL ISSUE A

SPECIAL PERMIT FOR EACH RAFFLE IN WHICH THE LICENSED ELIGIBLE

ORGANIZATION PROPOSES TO AWARD INDIVIDUAL PRIZES IN EXCESS OF

$3,000. THE LICENSING AUTHORITY MAY ESTABLISH AND COLLECT A FEE

NOT TO EXCEED $25 FOR THE ISSUANCE OF SPECIAL PERMITS UNDER THIS

SECTION.

(B) PERMIT APPLICATION.--EACH SPECIAL PERMIT APPLICATION

SHALL SPECIFY THE LOCATION WHERE THE ACTUAL DRAWING WILL BE

A09832 - 25 -

HELD, THE NUMBER OF CHANCES TO BE SOLD, THE PRICE PER CHANCE AND

THE PRIZE TO BE AWARDED.

SECTION 12. THE ACT IS AMENDED BY ADDING SECTIONS TO READ:

SECTION 309. SPECIAL LOCATION PERMITS.

(A) SPECIAL PERMIT REQUIRED.--NOTWITHSTANDING SECTION 307

(B.2), A LICENSED ELIGIBLE ORGANIZATION THAT IS NOT A CLUB

LICENSEE MAY CONDUCT GAMES OF CHANCE IN ANY COUNTY OUTSIDE THE

COUNTY WHERE THE LICENSE IS ISSUED AT A PREMISES OR OTHER

LOCATION NOT PROHIBITED BY LOCAL ORDINANCE OR THIS ACT AND FOR

WHICH THE LICENSING AUTHORITY OF THE COUNTY IN WHICH THE

LICENSED ELIGIBLE ORGANIZATION PROPOSES TO CONDUCT GAMES OF

CHANCE HAS ISSUED A SPECIAL LOCATION PERMIT UNDER THIS SECTION.

(B) PERMIT APPLICATION.--EACH SPECIAL LOCATION PERMIT

APPLICATION SHALL BE SUBMITTED ON A FORM AND IN A MANNER AS

REQUIRED BY THE LICENSING AUTHORITY, PROVIDED THAT EACH

APPLICATION SHALL SPECIFY:

(1) THE GAMES OF CHANCE TO BE OFFERED.

(2) THE DATE, TIME AND LOCATION OF WHERE THE GAMES OF

CHANCE WILL BE OFFERED.

(3) THE PRICES FOR CHANCES TO BE SOLD.

(4) THE PRIZES TO BE AWARDED.

(5) THE LICENSE NUMBER OF THE LICENSED ELIGIBLE

ORGANIZATION.

(6) THE ADDRESS OF THE OPERATING SITE OF THE LICENSED

ELIGIBLE ORGANIZATION.

PERMIT, THE LICENSING AUTHORITY SHALL CONFIRM WITH THE LICENSING

AUTHORITY THAT ISSUED THE LICENSE TO THE ELIGIBLE ORGANIZATION

THAT THE ELIGIBLE ORGANIZATION'S LICENSE IS VALID. A LICENSED

ELIGIBLE ORGANIZATION WHOSE LICENSE IS VALID AND PROPOSES TO

A09832 - 26 -

OFFER GAMES OF CHANCE AT A LOCATION NOT OTHERWISE PROHIBITED BY

LOCAL ORDINANCE OR THIS ACT SHALL BE CONSIDERED SUITABLE FOR

ISSUANCE OF A SPECIAL LOCATION PERMIT BY THE LICENSING

AUTHORITY. THE LICENSING AUTHORITY MAY ESTABLISH AND COLLECT A

FEE NOT TO EXCEED $25 FOR THE ISSUANCE OF SPECIAL LOCATION

PERMITS UNDER THIS SECTION.

(D) LIMITATIONS.--THE FOLLOWING LIMITATIONS SHALL APPLY TO A

LICENSED ELIGIBLE ORGANIZATION ISSUED A SPECIAL LOCATION PERMIT

UNDER THIS SECTION:

(1) A LICENSED ELIGIBLE ORGANIZATION SHALL BE ELIGIBLE

TO RECEIVE NO MORE THAN TEN SPECIAL LOCATION PERMITS IN A

CALENDAR YEAR EXCEPT THAT A VOLUNTEER FIRE, AMBULANCE, RESCUE

OR CONSERVATION ORGANIZATION THAT IS NOT A CLUB LICENSEE

SHALL BE ELIGIBLE TO RECEIVE 12 SPECIAL LOCATION PERMITS IN A

CALENDAR YEAR.

(2) A SPECIAL LOCATION PERMIT SHALL AUTHORIZE THE

LICENSED ORGANIZATION TO CONDUCT GAMES OF CHANCE ONLY AT THE

LOCATION, TIME AND DATE AS INDICATED ON THE APPLICATION FOR

THE SPECIAL LOCATION PERMIT, PROVIDED THAT THE DURATION DOES

NOT EXCEED ONE CALENDAR DAY.

(3) NO MORE THAN THREE LICENSED ELIGIBLE ORGANIZATIONS,

INCLUDING THE LICENSED ELIGIBLE ORGANIZATION THAT OWNS OR

LEASES THE PREMISES, MAY CONDUCT GAMES OF CHANCE

SIMULTANEOUSLY AT A PREMISES OR LOCATION.

(4) A LICENSED ELIGIBLE ORGANIZATION SHALL ENSURE THAT

THE CONDUCT OF GAMES OF CHANCE BY DIFFERENT LICENSED ELIGIBLE

ORGANIZATIONS ARE SEPARATE AND CLEARLY IDENTIFIED WITHIN A

PREMISES OR LOCATION.

(5) A LICENSED ELIGIBLE ORGANIZATION THAT IS NOT A CLUB

LICENSEE MAY CONDUCT GAMES OF CHANCE SIMULTANEOUSLY WITH THE

A09832 - 27 -

CONDUCT OF GAMES OF CHANCE BY A CLUB LICENSEE NOT MORE THAN A

TOTAL OF SEVEN DAYS DURING THE CALENDAR YEAR.

(E) PROCEEDS.--A LICENSED ELIGIBLE ORGANIZATION SHALL USE

PROCEEDS FROM GAMES OF CHANCE OPERATED UNDER A SPECIAL LOCATION

PERMIT FOR PUBLIC INTEREST PURPOSES WITHIN OR DIRECTLY

BENEFITING THE COUNTY IN WHICH THE LICENSING AUTHORITY ISSUED

THE SPECIAL LOCATION PERMIT. NOTHING IN THIS PARAGRAPH SHALL BE

CONSTRUED TO REQUIRE PROCEEDS TO BE USED EXCLUSIVELY FOR PUBLIC

INTEREST PURPOSES WITHIN THE COUNTY.

(F) ADDITIONAL PERMITS.--A LICENSED ELIGIBLE ORGANIZATION

ISSUED A SPECIAL LOCATION PERMIT UNDER THIS SECTION MAY ALSO

APPLY TO THE LICENSING AUTHORITY FOR A SPECIAL RAFFLE PERMIT IN

ACCORDANCE WITH SECTION 308 AND A VERTICAL WHEEL GAME PERMIT IN

ACCORDANCE WITH SECTION 310, PROVIDED THAT A SPECIAL RAFFLE

PERMIT OR A VERTICAL WHEEL GAME PERMIT SHALL ONLY BE VALID FOR

THE DURATION OF THE SPECIAL LOCATION PERMIT.

SECTION 310. VERTICAL WHEEL GAME PERMITS.

(A) SPECIAL PERMIT REQUIRED.--NOTWITHSTANDING ANY OTHER

PROVISIONS OF THIS ACT, A LICENSED ELIGIBLE ORGANIZATION MAY

OPERATE A VERTICAL WHEEL GAME AT ONE LOCATION NOT PROHIBITED BY

LOCAL ORDINANCE OR THIS ACT FOR NO MORE THAN SEVEN CONSECUTIVE

DAYS UPON ISSUANCE OF A VERTICAL WHEEL GAME PERMIT FROM THE

LICENSING AUTHORITY.

(B) PERMIT APPLICATION.--EACH VERTICAL WHEEL GAME PERMIT

APPLICATION SHALL BE SUBMITTED ON A FORM AND IN A MANNER AS

REQUIRED BY THE LICENSING AUTHORITY, PROVIDED THAT EACH

APPLICATION SHALL SPECIFY THE LOCATION WHERE THE VERTICAL WHEEL

GAME WILL BE OFFERED, THE PRICE PER CHANCE AND THE PRIZES TO BE

AWARDED.

A09832 - 28 -

WHOSE LICENSE IS VALID, PROPOSES TO OFFER THE VERTICAL WHEEL

GAME AT A LOCATION NOT OTHERWISE PROHIBITED BY LOCAL ORDINANCE

OR THIS ACT AND WHOSE APPLICATION SPECIFIES THAT NO SINGLE

CHANCE WILL BE SOLD IN EXCESS OF $10 SHALL BE CONSIDERED

SUITABLE FOR ISSUANCE OF A VERTICAL WHEEL GAME PERMIT BY THE

LICENSING AUTHORITY. THE LICENSING AUTHORITY MAY ESTABLISH AND

COLLECT A FEE NOT TO EXCEED $25 FOR THE ISSUANCE OF VERTICAL

WHEEL GAME PERMITS UNDER THIS SECTION.

(D) LIMITATION.--A LICENSING AUTHORITY MAY ISSUE NO MORE

THAN FOUR VERTICAL WHEEL GAME PERMITS UNDER THIS SECTION TO ANY

ONE LICENSED ELIGIBLE ORGANIZATION IN A CALENDAR YEAR.

SECTION 311. POKER RUN PERMITS.

(A) SPECIAL PERMIT REQUIRED.--A LICENSED ELIGIBLE

ORGANIZATION MAY OPERATE A POKER RUN FOR NO MORE THAN ONE DAY

UPON ISSUANCE OF A POKER RUN PERMIT FROM THE LICENSING

AUTHORITY. LICENSED ELIGIBLE ORGANIZATIONS MAY JOINTLY OPERATE A

SINGLE POKER RUN, PROVIDED THAT EACH PARTICIPATING LICENSED

ELIGIBLE ORGANIZATION IS ISSUED A POKER RUN PERMIT. NO MORE THAN

FIVE LICENSED ELIGIBLE ORGANIZATIONS MAY JOINTLY OPERATE A POKER

RUN.

(B) PERMIT APPLICATION.--EACH POKER RUN PERMIT APPLICATION

SHALL BE SUBMITTED ON A FORM AND IN A MANNER AS REQUIRED BY THE

LICENSING AUTHORITY. A LICENSING AUTHORITY MAY REQUIRE THE

SUBMISSION OF A SINGLE CONSOLIDATED APPLICATION FOR A POKER RUN

TO BE OPERATED JOINTLY BY MULTIPLE LICENSED ELIGIBLE

ORGANIZATIONS. EACH APPLICATION SHALL INCLUDE:

(1) THE POKER RUN LOCATIONS OF OPERATION.

(2) THE DATE AND HOURS OF OPERATION OF THE POKER RUN.

(3) THE PRICE PER CHANCE.

(4) THE PRIZES TO BE AWARDED.

A09832 - 29 -

(5) A COPY OF THE AGREEMENT REQUIRED UNDER SUBSECTION

(E) IF THE POKER RUN WILL BE OPERATED JOINTLY WITH OTHER

LICENSED ELIGIBLE ORGANIZATIONS.

(6) ANY OTHER INFORMATION REQUIRED BY THE LICENSING

AUTHORITY.

WHOSE LICENSE IS VALID, PROPOSES TO OFFER A POKER RUN AT

LOCATIONS PERMITTED UNDER SUBSECTION (D) AND WHOSE APPLICATION

SPECIFIES THAT THE TOTAL OF ALL PRIZES TO BE AWARDED FOR THE

POKER RUN WILL NOT EXCEED $15,000 SHALL BE CONSIDERED SUITABLE

FOR ISSUANCE OF A POKER RUN PERMIT. THE LICENSING AUTHORITY MAY

ESTABLISH AND COLLECT A FEE NOT TO EXCEED $25 FOR THE ISSUANCE

OF POKER RUN PERMITS UNDER THIS SECTION. A LICENSING AUTHORITY

SHALL ISSUE NO MORE THAN TWO POKER RUN PERMITS TO A SINGLE

LICENSED ELIGIBLE ORGANIZATION IN ANY CALENDAR YEAR.

(D) LOCATIONS.--A POKER RUN MAY ONLY BE OPERATED AT

LOCATIONS WITHIN THE COUNTY IN WHICH THE ELIGIBLE ORGANIZATION

HAS BEEN ISSUED A POKER RUN PERMIT UNDER THIS SECTION AND A

LICENSE UNDER SECTION 307 BY THE LICENSING AUTHORITY, PROVIDED

THAT THE LOCATIONS ARE NOT PROHIBITED BY LOCAL ORDINANCE. A CLUB

LICENSEE ISSUED A POKER RUN PERMIT UNDER THIS SECTION MAY

OPERATE A POKER RUN, INCLUDING JOINTLY WITH OTHER ELIGIBLE

ORGANIZATIONS, AT ITS OWN LICENSED PREMISES, LOCATIONS OUTSIDE

ITS LICENSED PREMISES NOT PROHIBITED BY LOCAL ORDINANCE OR AT

THE LICENSED PREMISES OF ANOTHER CLUB LICENSEE ALSO HOLDING A

POKER RUN PERMIT.

(E) JOINT OPERATION AGREEMENT.--IF A POKER RUN IS TO BE

JOINTLY OPERATED BY MORE THAN ONE LICENSED ELIGIBLE

ORGANIZATION, EACH LICENSED ORGANIZATION MUST ENTER INTO A

WRITTEN AGREEMENT THAT IS SIGNED BY THE EXECUTIVE OFFICER OR

A09832 - 30 -

SECRETARY OF EACH PARTICIPATING ELIGIBLE ORGANIZATION. THE

WRITTEN AGREEMENT SHALL CONTAIN AT MINIMUM:

(1) THE DATE AND HOURS OF OPERATION OF THE POKER RUN.

(2) THE LOCATIONS THE POKER RUN WILL BE OPERATED.

(3) THE RESPONSIBILITIES OF EACH ELIGIBLE ORGANIZATION

FOR OPERATING THE POKER RUN.

(4) USE OF THE PROCEEDS FROM THE POKER RUN.

(5) A LIST OF OTHER GAMES OF CHANCE THAT WILL BE

OPERATED AT POKER RUN LOCATIONS, ITEMIZED BY LICENSED

ELIGIBLE ORGANIZATION.

(F) CONCURRENT OPERATION.--THE FOLLOWING SHALL APPLY TO THE

CONCURRENT OPERATION OF A POKER RUN WITH OTHER GAMES OF CHANCE

OPERATED BY A LICENSED ORGANIZATION HOLDING A POKER RUN PERMIT:

(1) EXCEPT AT THE LICENSED PREMISES OF A CLUB LICENSEE,

AN ELIGIBLE ORGANIZATION THAT IS NOT A CLUB LICENSEE MAY

OPERATE OTHER GAMES OF CHANCE AT ANY LOCATION IN WHICH THE

POKER RUN IS OPERATED.

(2) A CLUB LICENSEE OPERATING A POKER RUN MAY

CONCURRENTLY OPERATE OTHER GAMES OF CHANCE AT ITS LICENSED

PREMISES. A CLUB LICENSEE MAY NOT OPERATE ANY GAME OF CHANCE,

OTHER THAN A POKER RUN, OUTSIDE ITS LICENSED PREMISES DURING

THE OPERATION OF A POKER RUN.

(3) IF A POKER RUN IS OPERATED BY MORE THAN ONE LICENSED

ELIGIBLE ORGANIZATION, EACH LICENSED ELIGIBLE ORGANIZATION

ISSUED A POKER RUN PERMIT THAT IS NOT A CLUB LICENSEE MAY

OPERATE OTHER GAMES OF CHANCE AT ANY POKER RUN LOCATION

PROVIDED THAT:

(I) THE LOCATION IS NOT THE LICENSED PREMISES OF A

CLUB LICENSEE.

(II) THE OPERATION OF GAMES OF CHANCE BY EACH

A09832 - 31 -

LICENSED ELIGIBLE ORGANIZATION IS SEPARATE AND CLEARLY

IDENTIFIED AT THE POKER RUN LOCATION.

(G) APPLICABILITY.--SECTION 307(B.2) SHALL NOT APPLY TO A

POKER RUN OR OTHER GAMES OF CHANCE OPERATED AT POKER RUN

LOCATIONS BY A LICENSED ELIGIBLE ORGANIZATION ISSUED A POKER RUN

PERMIT UNDER THIS SECTION.

SECTION 13. SECTION 501 OF THE ACT IS REPEALED:

[SECTION 501. CLUB LICENSEE.

(A) REPORT.--

(1) BEGINNING IN 2014, A CLUB LICENSEE WITH PROCEEDS IN

EXCESS OF $20,000 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.

(2) THE REPORT UNDER PARAGRAPH (1) MUST BE FILED UNDER

OATH OR AFFIRMATION OF AN AUTHORIZED OFFICER OF THE CLUB

LICENSEE AND SHALL INCLUDE ALL OF THE FOLLOWING INFORMATION:

(I) THE PROCEEDS RECEIVED BY THE CLUB LICENSEE FROM

EACH GAME OF CHANCE CONDUCTED, ITEMIZED BY WEEK.

(II) THE AMOUNT OF PRIZES PAID FROM ALL GAMES OF

CHANCE, ITEMIZED BY WEEK.

(III) OTHER COSTS INCURRED RELATED TO THE CONDUCT OF

GAMES OF CHANCE.

(IV) VERIFICATION AND ITEMIZATION OF AMOUNTS

DISTRIBUTED FOR PUBLIC INTEREST.

(VII) OTHER INFORMATION OR DOCUMENTATION REQUIRED BY

THE DEPARTMENT.

(B) DISTRIBUTION.--THE DEPARTMENT SHALL PROVIDE A COPY OF

THE REPORT TO THE BUREAU OF LIQUOR CONTROL ENFORCEMENT.

PUBLISHED ON THE DEPARTMENT'S INTERNET WEBSITE.]

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SECTION 14. THE ACT IS AMENDED BY ADDING SECTIONS TO READ:

SECTION 501.1. DEFINITION.

AS USED IN THIS CHAPTER, THE TERM "PROCEEDS" SHALL MEAN:

(1) FOR ANY GAME OF CHANCE, OTHER THAN A POKER RUN

OPERATED JOINTLY WITH OTHER LICENSED ELIGIBLE ORGANIZATIONS

UNDER SECTION 311, THE DIFFERENCE BETWEEN:

(I) THE ACTUAL GROSS REVENUE COLLECTED BY A CLUB

LICENSEE FROM A GAME OF CHANCE; AND

(II) THE ACTUAL AMOUNT OF PRIZES PAID BY A CLUB

LICENSEE FROM A GAME OF CHANCE PLUS THE COST TO PURCHASE

GAMES OF CHANCE.

(2) FOR A POKER RUN OPERATED JOINTLY BY A CLUB LICENSEE

WITH OTHER LICENSED ELIGIBLE ORGANIZATIONS UNDER SECTION 311,

AN AMOUNT, UNLESS OTHERWISE SPECIFIED IN THE JOINT OPERATION

AGREEMENT BETWEEN THE CLUB LICENSEE AND THE OTHER LICENSED

ELIGIBLE ORGANIZATIONS, EQUAL TO:

(I) THE DIFFERENCE BETWEEN THE ACTUAL GROSS REVENUE

COLLECTED FROM THE OPERATION OF THE POKER RUN AND THE

ACTUAL AMOUNT OF PRIZES PAID FROM THE POKER RUN PLUS THE

COST TO PURCHASE THE POKER RUN; AND

(II) DIVIDED BY THE TOTAL NUMBER OF ELIGIBLE

ORGANIZATIONS JOINTLY OPERATING THE POKER RUN.

SECTION 501.2. CLUB LICENSEE.

(A) REPORT.--

(1) A CLUB LICENSEE WITH PROCEEDS IN EXCESS OF $20,000

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.

(2) THE REPORT UNDER PARAGRAPH (1) MUST BE FILED UNDER

OATH OR AFFIRMATION OF AN AUTHORIZED OFFICER OF THE CLUB

A09832 - 33 -

LICENSEE AND SHALL INCLUDE ALL OF THE FOLLOWING INFORMATION:

(I) THE PROCEEDS RECEIVED BY THE CLUB LICENSEE FROM

EACH GAME OF CHANCE CONDUCTED.

(II) THE AMOUNT OF PRIZES PAID FROM ALL GAMES OF

CHANCE.

(III) OTHER COSTS INCURRED RELATED TO THE CONDUCT OF

GAMES OF CHANCE.

(IV) VERIFICATION AND ITEMIZATION OF AMOUNTS

DISTRIBUTED FOR PUBLIC INTEREST.

(V) OTHER INFORMATION OR DOCUMENTATION REQUIRED BY

THE DEPARTMENT.

(B) DISTRIBUTION.--THE DEPARTMENT SHALL PROVIDE A COPY OF

THE REPORT TO THE BUREAU OF LIQUOR CONTROL ENFORCEMENT.

PUBLISHED ON THE DEPARTMENT'S INTERNET WEBSITE.

SECTION 15. SECTION 502(A.1) OF THE ACT, AMENDED NOVEMBER

27, 2013 (P.L.1045, NO.90), IS AMENDED TO READ:

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

CHANCE FOR A CLUB LICENSEE ARE $40,000 OR LESS, THE LICENSEE

SHALL BE ELIGIBLE TO RETAIN THE FIRST $20,000 IN PROCEEDS IN

THE FOLLOWING CALENDAR YEAR BEFORE SUBSECTION (A) APPLIES.]

IN EACH CALENDAR YEAR BEGINNING ON OR AFTER JANUARY 1, 2017,

A CLUB LICENSEE MAY RETAIN THE GREATER OF THE FOLLOWING:

(I) THE FIRST $20,000 IN PROCEEDS BEFORE SUBSECTION

(A) APPLIES; OR

(II) AN AMOUNT NECESSARY FOR THE PURCHASE OR REPAIR

A09832 - 34 -

OF ELECTRONIC PULL-TAB DISPENSING MACHINES OR A POINT OF

SALE SOFTWARE SYSTEM WHICH RECORDS DATA RELATIVE TO THE

SALE OF GAMES OF CHANCE BEFORE SUBSECTION (A) APPLIES.

(2) AMOUNTS RETAINED BY A CLUB LICENSEE UNDER SUBSECTION

(A)(2) SHALL BE EXPENDED WITHIN ONE YEAR OF THE END OF THE

CALENDAR YEAR IN WHICH THE PROCEEDS WERE OBTAINED UNLESS THE

CLUB LICENSEE NOTIFIES THE DEPARTMENT THAT FUNDS ARE BEING

RETAINED FOR A SUBSTANTIAL PUBLIC INTEREST PURCHASE OR

PROJECT.

* * *

SECTION 16. THE ACT IS AMENDED BY ADDING A SECTION TO READ:

SECTION 505.2. CLUB LICENSEE LOCATION PERMITS.

(A) SPECIAL PERMIT REQUIRED.--NOTWITHSTANDING SECTION

307(B.2), A CLUB LICENSEE MAY CONDUCT GAMES OF CHANCE OUTSIDE

THE CLUB LICENSEE'S LICENSED PREMISES IN THE COUNTY WHERE THE

LICENSE IS ISSUED AT A PREMISES OR OTHER LOCATION NOT PROHIBITED

BY LOCAL ORDINANCE OR THIS ACT, AND FOR WHICH THE LICENSING

AUTHORITY HAS ISSUED A CLUB LICENSEE LOCATION PERMIT UNDER THIS

SECTION.

(B) PERMIT APPLICATION.--EACH CLUB LICENSEE LOCATION PERMIT

APPLICATION SHALL BE SUBMITTED ON A FORM AND IN A MANNER AS

REQUIRED BY THE LICENSING AUTHORITY, PROVIDED THAT EACH

APPLICATION SHALL SPECIFY:

(1) THE GAMES OF CHANCE TO BE OFFERED.

(2) THE DATES, TIMES AND LOCATION OF WHERE THE GAMES OF

CHANCE WILL BE OFFERED.

(3) THE PRICES FOR CHANCES TO BE SOLD.

(4) THE PRIZES TO BE AWARDED.

VALID AND PROPOSES TO OFFER GAMES OF CHANCE AT A LOCATION NOT

A09832 - 35 -

OTHERWISE PROHIBITED BY LOCAL ORDINANCE OR THIS ACT SHALL BE

CONSIDERED SUITABLE FOR ISSUANCE OF A CLUB LICENSEE LOCATION

PERMIT BY THE LICENSING AUTHORITY. THE LICENSING AUTHORITY MAY

ESTABLISH AND COLLECT A FEE NOT TO EXCEED $25 FOR THE ISSUANCE

OF CLUB LICENSEE LOCATION PERMITS UNDER THIS SECTION.

(D) LIMITATIONS.--THE FOLLOWING LIMITATIONS SHALL APPLY TO A

CLUB LICENSEE ISSUED A CLUB LICENSEE LOCATION PERMIT UNDER THIS

SECTION:

(1) THE CLUB LICENSEE SHALL BE ELIGIBLE TO RECEIVE NO

MORE THAN TWO CLUB LICENSEE LOCATION PERMITS IN A CALENDAR

YEAR.

(2) THE CLUB LICENSEE LOCATION PERMIT SHALL AUTHORIZE

THE CLUB LICENSEE TO CONDUCT GAMES OF CHANCE ONLY AT THE

LOCATION, TIMES AND DATES AS INDICATED ON THE APPLICATION FOR

THE CLUB LICENSEE LOCATION PERMIT, PROVIDED THAT THE DURATION

DOES NOT EXCEED SEVEN CONSECUTIVE CALENDAR DAYS.

(3) NO MORE THAN THREE LICENSED ELIGIBLE ORGANIZATIONS,

INCLUDING THE LICENSED ELIGIBLE ORGANIZATION THAT OWNS OR

LEASES THE PREMISES, MAY CONDUCT GAMES OF CHANCE

SIMULTANEOUSLY AT A PREMISES OR LOCATION.

(4) A LICENSED ELIGIBLE ORGANIZATION SHALL ENSURE THAT

THE CONDUCT OF GAMES OF CHANCE BY DIFFERENT LICENSED ELIGIBLE

ORGANIZATIONS ARE SEPARATE AND CLEARLY IDENTIFIED WITHIN A

PREMISES OR LOCATION.

(5) EXCEPT AS PROVIDED FOR IN SECTION 307(B.2)(4), A

CLUB LICENSEE MAY NOT CONDUCT GAMES OF CHANCE AT THE LICENSED

PREMISES OF ANOTHER CLUB LICENSEE.

(E) ADDITIONAL PERMITS.--

(1) A CLUB LICENSEE ISSUED A CLUB LICENSEE LOCATION

PERMIT UNDER THIS SECTION MAY OPERATE A RAFFLE OR VERTICAL

A09832 - 36 -

WHEEL GAME IN ACCORDANCE WITH SECTIONS 308 AND 310.

(2) A CLUB LICENSEE LOCATION PERMIT SHALL NOT BE

REQUIRED FOR THE OPERATION OF A POKER RUN IN ACCORDANCE WITH

SECTION 311.

SECTION 17. SECTION 701(A)(8) AND (B) OF THE ACT, AMENDED

FEBRUARY 2, 2012 (P.L.7, NO.2), ARE AMENDED TO READ:

SECTION 701. REVOCATION OF LICENSES.

(A) GROUNDS.--THE FOLLOWING SHALL BE GROUNDS FOR SUSPENSION,

REVOCATION OR NONRENEWAL OF A LICENSE:

* * *

(8) THE ELIGIBLE ORGANIZATION HAS VIOLATED ANY CONDITION

OF A [SPECIAL] PERMIT ISSUED PURSUANT TO SECTION 308, 309,

310, 311 OR 505.2.

* * *

(B) PRODUCTION OF RECORDS.--THE DISTRICT ATTORNEY MAY

REQUIRE LICENSEES TO PRODUCE THEIR BOOKS, ACCOUNTS AND RECORDS

RELATING TO THE CONDUCT OF GAMES OF CHANCE IN ORDER TO DETERMINE

IF A VIOLATION OF THIS ACT HAS OCCURRED. LICENSEES SHALL ALSO BE

REQUIRED, UPON REQUEST, TO PROVIDE THEIR LICENSE, BOOKS,

ACCOUNTS AND RECORDS RELATING TO THE CONDUCT OF GAMES OF CHANCE

TO THE LICENSING AUTHORITY, THE BUREAU OF LIQUOR CONTROL

ENFORCEMENT OR TO A LAW ENFORCEMENT AGENCY OR OFFICIAL. [A CLUB

LICENSEE SHALL RETAIN RECORDS FOR A PERIOD OF FIVE YEARS.]

SECTION 18. SECTION 702(B) AND (G) OF THE ACT, AMENDED

FEBRUARY 2, 2012 (P.L.7, NO.2), NOVEMBER 27, 2013 (P.L.1045,

NO.90) AND NOVEMBER 27, 2013 (P.L.1062, NO.92), ARE AMENDED TO

READ:

SECTION 702. ENFORCEMENT.

* * *

(B) BUREAU OF LIQUOR CONTROL ENFORCEMENT.--IF THE LICENSEE

A09832 - 37 -

IS A CLUB LICENSEE OR A LICENSEE UNDER CHAPTER 9, THE BUREAU OF

LIQUOR CONTROL ENFORCEMENT MAY ENFORCE THE PROVISIONS OF THIS

ACT IN ACCORDANCE WITH SUBSECTION (G). AN ADMINISTRATIVE LAW

JUDGE UNDER SECTION 212 OF THE ACT OF APRIL 12, 1951 (P.L.90,

NO.21), KNOWN AS THE LIQUOR CODE, MAY IMPOSE THE PENALTIES UNDER

SUBSECTION (D) FOLLOWING THE ISSUANCE OF A CITATION BY THE

BUREAU. THE BUREAU OF LIQUOR CONTROL ENFORCEMENT SHALL HAVE NO

JURISDICTION TO ENFORCE THE PROVISIONS OF THIS ACT ON ANY

SPECIAL OCCASION PERMIT HOLDER UNDER SECTION 408.4 OF THE LIQUOR

CODE. THE BUREAU OF LIQUOR CONTROL ENFORCEMENT SHALL RETAIN ALL

POWERS AND DUTIES TO ENFORCE THE PROVISIONS OF THE LIQUOR CODE

ON A SPECIAL OCCASION PERMIT HOLDER.

* * *

(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 19. THE DEFINITIONS OF "BUREAU" AND "NET REVENUE" IN

SECTION 902 OF THE ACT, ADDED NOVEMBER 27, 2013 (P.L.1045,

NO.90), ARE AMENDED AND THE SECTION IS AMENDED BY ADDING A

DEFINITION TO READ:

A09832 - 38 -

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:

* * *

["BUREAU." THE BUREAU OF INVESTIGATIONS AND ENFORCEMENT OF

THE PENNSYLVANIA GAMING CONTROL BOARD.]

* * *

"NET REVENUE." AS FOLLOWS:

(1) FOR TAVERN GAMES REQUIRED TO BE PURCHASED FROM A

LICENSED DISTRIBUTOR UNDER THIS ACT, THE DIFFERENCE BETWEEN:

(I) THE AMOUNT OF THE FACE VALUE, AS INDICATED BY

THE MANUFACTURER, MINUS THE COST OF THE GAME, COLLECTIBLE

BY A LICENSEE FROM A TAVERN GAME; AND

(II) THE MAXIMUM AMOUNT OF PRIZES PAYABLE, AS

INDICATED BY THE MANUFACTURER, BY A LICENSEE FROM A

TAVERN GAME.

(2) FOR TAVERN GAMES NOT REQUIRED TO BE PURCHASED FROM A

LICENSED DISTRIBUTOR, THE TERM HAS THE SAME MEANING AS

PROCEEDS.

* * *

"TAVERN WEEKLY DRAWING." A GAME IN WHICH:

(1) AN INDIVIDUAL AT A TAVERN SELECTS OR IS ASSIGNED A

NUMBER FOR A CHANCE AT A PRIZE WITH THE WINNER DETERMINED BY

RANDOM DRAWING TO TAKE PLACE AT THE TAVERN AT THE END OF A

SEVEN-DAY PERIOD;

(2) A WINNER MAY BE DETERMINED WITH THE AID OF A PASSIVE

SELECTION DEVICE OR REFERENCE TO DRAWINGS CONDUCTED BY THE

DEPARTMENT UNDER THE ACT OF AUGUST 26, 1971 (P.L.351, NO.91),

KNOWN AS THE STATE LOTTERY LAW;

A09832 - 39 -

(3) CHANCES ARE NOT SOLD FOR AN AMOUNT IN EXCESS OF $1;

AND

(4) NO MORE THAN ONE CHANCE PER INDIVIDUAL IS SOLD PER

DRAWING.

SECTION 20. SECTIONS 903, 904, 905, 908.1, 909, 909.1(A) AND

(C), 909.2(C) AND 913 OF THE ACT, ADDED NOVEMBER 27, 2013

(P.L.1045, NO.90), ARE AMENDED TO READ:

SECTION 903. LICENSES.

(A) APPLICATION.--A RESTAURANT LICENSEE MAY APPLY TO THE

BOARD FOR A LICENSE TO CONDUCT TAVERN GAMES AT A LICENSED

PREMISES LOCATED IN A MUNICIPALITY THAT HAS ADOPTED A REFERENDUM

TO ALLOW SMALL GAMES OF CHANCE UNDER SECTION 703.

(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] IN ACCORDANCE WITH SUBSECTION

(E).

(5) RELATING TO CRIMINAL INFORMATION, DISCLOSURE OF ALL

ARRESTS AND CITATIONS OF THE APPLICANT, INCLUDING NONTRAFFIC

A09832 - 40 -

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 INTERESTS AND TRANSACTIONS AS REQUIRED BY

THE [BUREAU] BOARD.

(7) RELATING TO CITATIONS OF THE APPLICANT ISSUED UNDER

THE LIQUOR CODE.

(8) RELATING TO DISCLOSURE OF CONDITIONAL LICENSE

AGREEMENTS ENTERED INTO UNDER THE LIQUOR CODE.

(9) ANY OTHER INFORMATION REQUIRED BY THE BOARD.

[(C) DUTY OF BUREAU.--THE BUREAU SHALL CONDUCT A BACKGROUND

INVESTIGATION OF EACH APPLICANT, THE SCOPE OF WHICH SHALL BE

DETERMINED BY THE BUREAU.]

(D) REVIEW.--[WITHIN SIX MONTHS OF RECEIPT OF THE BACKGROUND

INVESTIGATION REPORT FROM THE BUREAU, THE] THE BOARD SHALL

APPROVE OR DISAPPROVE THE APPLICATION WITHIN 30 DAYS OF RECEIPT

OF THE APPLICATION.

(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.] A CRIMINAL

HISTORY RECORD INFORMATION CHECK OBTAINED FROM THE

PENNSYLVANIA STATE POLICE AS DEFINED IN 18 PA.C.S. § 9102

A09832 - 41 -

(RELATING TO DEFINITIONS) AND PERMITTED BY 18 PA.C.S. §

9121(B) (RELATING TO GENERAL REGULATIONS), FOR THE APPLICANT,

INCLUDING EACH OWNER AND OFFICER OF THE RESTAURANT LICENSEE.

(2) FINANCIAL BACKGROUND INFORMATION.

(3) REGULATORY HISTORY BEFORE THE BOARD OR OTHER

COMMONWEALTH AGENCY.

(4) OTHER INFORMATION REQUIRED BY THE [BUREAU] BOARD.

(F) PERSONAL INTERVIEW.--IF THE [BUREAU] BOARD DETERMINES

THAT THE RESULTS OF THE BACKGROUND REPORT INVESTIGATION WARRANT

ADDITIONAL REVIEW OF THE INDIVIDUAL, THE [BUREAU] BOARD SHALL

CONDUCT A PERSONAL INTERVIEW WITH THE APPLICANT AND MAY REQUEST

INFORMATION AND INTERVIEWS FROM OTHER PERSONAL OR PROFESSIONAL

ASSOCIATES.

(G) COOPERATION.--THE APPLICANT SHALL COOPERATE WITH THE

[BUREAU] BOARD AS REQUESTED DURING THE CONDUCT OF THE BACKGROUND

INVESTIGATION. ANY REFUSAL TO PROVIDE THE INFORMATION REQUIRED

UNDER THIS SECTION OR TO CONSENT TO A BACKGROUND INVESTIGATION

SHALL RESULT IN THE IMMEDIATE DENIAL OF A LICENSE BY THE BOARD.

[(H) COSTS.--THE APPLICANT SHALL REIMBURSE THE BUREAU FOR

THE ACTUAL COSTS OF CONDUCTING THE BACKGROUND INVESTIGATION. THE

BOARD SHALL NOT APPROVE AN APPLICANT THAT HAS NOT FULLY

REIMBURSED THE BUREAU FOR THE INVESTIGATION.]

(I) APPROVAL.--[THE BUREAU SHALL TRANSMIT THE INVESTIGATIVE

REPORT AND MAY MAKE A RECOMMENDATION TO THE BOARD.] THE BOARD

SHALL REVIEW THE INFORMATION [OBTAINED] REQUIRED UNDER THIS

SECTION TO DETERMINE IF THE APPLICANT POSSESSES THE FOLLOWING:

(1) FINANCIAL STABILITY, INTEGRITY AND RESPONSIBILITY.

(2) SUFFICIENT BUSINESS EXPERIENCE AND ABILITY TO

EFFECTIVELY OPERATE TAVERN GAMES AS PART OF THE RESTAURANT

LICENSEE'S OPERATOR.

A09832 - 42 -

(3) CHARACTER, HONESTY AND INTEGRITY TO BE LICENSED TO

OPERATE TAVERN GAMES IN A RESPONSIBLE AND LAWFUL MANNER.

(J) DISAPPROVAL.--THE BOARD MAY DISAPPROVE THE ISSUANCE OF A

TAVERN GAMING LICENSE FOR THE FOLLOWING REASONS:

(1) A LICENSE SHALL NOT BE ISSUED TO A RESTAURANT

LICENSEE WHOSE LIQUOR LICENSE IS IN SAFEKEEPING PURSUANT TO

SECTION 474.1 OF THE LIQUOR CODE.

(2) A LICENSE SHALL NOT BE ISSUED TO A LOCATION THAT IS

SUBJECT TO A PENDING OBJECTION UNDER SECTION 470(A.1) OF THE

LIQUOR CODE.

(3) A LICENSE SHALL NOT BE ISSUED TO A LOCATION THAT IS

SUBJECT TO:

(I) A PENDING LICENSE SUSPENSION UNDER SECTION 471

OF THE LIQUOR CODE; OR

(II) A ONE-YEAR PROHIBITION ON THE ISSUANCE OR

TRANSFER OF A LICENSE UNDER SECTION 471(B) OF THE LIQUOR

CODE.

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.

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. 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.

A09832 - 43 -