Bill Text: PA HB2649 | 2011-2012 | Regular Session | Introduced

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Bill Title: Further providing for legislative intent, for definitions, for games of chance permitted, for prize limits, for sales limited, for regulations of department, for licensing of eligible organizations to conduct games of chance, for special permits, for club licensee, for distribution of proceeds, for records, for raffle tickets, for weekly drawings, for revocation of licenses, for enforcement, for certain persons prohibited, for civil penalties and for criminal penalties.

Spectrum: Strong Partisan Bill (Democrat 12-1)

Status: (Introduced - Dead) 2012-10-01 - Referred to GAMING OVERSIGHT [HB2649 Detail]

Download: Pennsylvania-2011-HB2649-Introduced.html

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PRINTER'S NO. 4121
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No. 2649 Session of2012
INTRODUCED BY DALEY, CALTAGIRONE, HARHAI, HORNAMAN, KOTIK, MUNDY, NEILSON, O'NEILL, PETRARCA AND MAHONEY, OCTOBER 1, 2012
REFERRED TO COMMITTEE ON GAMING OVERSIGHT, OCTOBER 1, 2012
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," further providing for
legislative intent, for definitions, for games of chance
permitted, for prize limits, for sales limited, for
regulations of department, for licensing of eligible
organizations to conduct games of chance, for special
permits, for club licensee, for distribution of proceeds, for
records, for raffle tickets, for weekly drawings, for
revocation of licenses, for enforcement, for certain persons
prohibited, for civil penalties and for criminal penalties.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Sections 102, 103, 301, 302, 303, 306, 307 and
308 of the act of December 19, 1988 (P.L.1262, No.156), known as
the Local Option Small Games of Chance Act, renumbered and
amended or added February 2, 2012 (P.L.7, No.2), are amended to
read:
Section 102. Legislative intent.
The General Assembly hereby declares that the playing of
small 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.]
It is hereby declared to be the policy of the General
Assembly that all phases of licensing, operation and regulation
of small 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 discourage commercialization of small games of chance,
prevent participation by organized crime and prevent the
diversion of funds from the purposes herein authorized.
Section 103. Definitions.
The following words and phrases when used in this act shall
have the meanings given to them in this section unless the
context clearly indicates otherwise:
"Bona fide member." Any individual who holds a membership in
the eligible organization as defined by that organization's
constitution, charter, articles of incorporation or bylaws.
"Charitable organization." A not-for-profit group or body of
persons which is created and exists for the purpose of
performing a humane service; promoting the good and welfare of
the aged, poor, infirm or distressed; combating juvenile
delinquency; or advancing the spiritual, mental, social and
physical improvement of young men and women.
"Civic and service association." Any Statewide or branch,
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lodge or chapter of a nonprofit national or State organization
which is authorized by its written constitution, charter,
articles of incorporation or bylaws to engage in a civic or
service purpose within this Commonwealth, which shall have
existed in this Commonwealth for one year. The term also means a
similar local nonprofit organization, not affiliated with a
national or State organization, which is recognized by a
resolution adopted by the governing body of the municipality in
which the organization conducts its principal activities. The
term shall include Statewide or local bona fide sportsmen's and
wildlife associations, federations or clubs, volunteer fire
companies, volunteer rescue squads and volunteer ambulance
associations and bona fide senior citizens organizations. In the
case of bona fide senior citizens organizations, the licensing
authority may accept alternative documentation for proof of
purposes when there are no bylaws or articles of incorporation
in existence. The term shall also include nonprofit
organizations which are established to promote and encourage
participation and support for extracurricular activities within
the established primary and secondary public, private and
parochial school systems. Such organizations must be recognized
by a resolution adopted by the appropriate governing body. In
the case of organizations associated with the public school
system, the governing body shall be the school board of the
school district. In the case of private or parochial school
organizations, that body shall be either the board of trustees
or the Archdiocese.
"Club." An organization that:
(1) [is licensed to sell liquor under section 404] meets
the definition of "club" under section 102 of the act of
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April 12, 1951 (P.L.90, No.21), known as the Liquor Code;
[and]
(2) qualifies as an exempt organization under section
501(c) or 527 of the Internal Revenue Code of 1986 (Public
Law 99-514, 26 U.S.C. § 501(c) or 527)[.]; and
(3) is licensed to sell liquor at retail and has a
charitable, religious or civic purpose or is organized to
benefit a political party.
["Club licensee." A club that holds a license to conduct
small games of chance.]
"Daily drawing." A game [of chance] in which a bona fide
member selects or is assigned a number for a chance at a prize
with the winner determined by random drawing to take place on
the [licensed] eligible organization's [licensed] premises
during the same operating day. The term includes games [of
chance] commonly known as "member sign-in lotteries" and "half-
and-half lotteries." Nothing in this act shall be construed to
prohibit the carrying over of a jackpot where the winning number
has not been entered in the game on a particular operating day.
Daily drawing winners may be determined with the aid of a
passive selection device or reference to drawings conducted by
the department pursuant to the act of August 26, 1971 (P.L.351,
No.91), known as the State Lottery Law. Daily drawing chances
may not be sold for an amount in excess of $1, and no more than
one chance per individual may be sold per drawing. [Nothing in
this definition shall restrict an eligible organization from
conducting more than one drawing per day.]
"Department." The Department of Revenue of the Commonwealth.
"Dispensing machine." A device designed exclusively for the
dispensing of the games of chance authorized by this act,
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including, but not limited to, ticket jars, fish bowls and stamp
machines. Nothing in this act shall be construed to authorize
devices commonly known as "slot machines" or "video poker."
"Eligible organization." A charitable, religious, fraternal
or veterans' organization, club[, club licensee] or civic and
service association. 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.
"Fraternal organization." A nonprofit organization within
this Commonwealth which is created and carried on for the mutual
benefit of its members, has a limited membership and a
representative form of government and is a branch, lodge or
chapter of a national or State organization. Such organizations
shall have been in existence in this Commonwealth and fulfilling
their purposes for one year prior to the date of application for
a license.
"Games of chance." Punchboards, daily drawings, weekly
drawings, raffles and pull-tabs, as defined in this act,
provided that no such game 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 Title 18 of
the Pennsylvania Consolidated Statutes (relating to crimes and
offenses) [or authorized under 4 Pa.C.S. (relating to
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amusements)]. Nothing in this act shall be construed to
authorize games commonly known as "slot machines" or "video
poker."
"Law enforcement official." A municipal police officer, a
member of the Pennsylvania State Police, the sheriff of a county
or a deputy sheriff.
"License." A license to conduct games of chance.
"Licensed distributor." A distributor of games of chance
licensed under section 307.
"Licensing authority." The county treasurer, or in any home
rule county or city of the first class, where there is no
elected treasurer, the designee of the governing authority.
"Municipality." A city, borough, incorporated town or
township or a home rule municipality formerly classified as a
city, borough, incorporated town or township.
"Passive selection device." A device which is used to hold
or denote the universe of possible winning numbers or entrants
in a daily drawing or raffle. Such a device may not have the
capability of being utilized to conduct or aid in the conducting
of unauthorized or illegal forms of gambling.
["Prize." Cash or merchandise awarded for games of chance.
"Proceeds." The difference between:
(1) the actual gross revenue collected by a licensed
eligible organization from a game of chance; and
(2) the actual amount of prizes paid by a licensed
eligible organization from a game of chance, plus the cost to
purchase games of chance.]
"Public interest purpose." One or more of the following:
(1) The activities and operations of a nonprofit
benevolent, religious, educational, philanthropic, humane,
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scientific, patriotic, social welfare, social advocacy,
public health, public safety, emergency response,
environmental 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 an eligible organization and
[relating operational expenses] used for purposes specified
in paragraphs (1), (2) and (3).
The term does not include the erection or acquisition of any
real property, unless the property will be used exclusively for
one or more of the purposes specified in this definition.
"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.
"Punchboard." A board, placard or other device marked off in
a grid or columns, in which each section contains a hidden
number or numbers, or other symbol, which determines the winning
chances.
"Raffle." A game [of chance] in which a participant buys a
ticket for a chance at a prize with the winner determined by a
random drawing of corresponding ticket stubs to take place at a
location and date or dates printed upon each ticket. Such games
[of chance] shall include lotteries but not daily drawings.
Raffle winners may be determined by reference to drawings
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conducted by the department pursuant to the act of August 26,
1971 (P.L.351, No.91), known as the State Lottery Law.
"Religious organization." A not-for-profit group or body of
persons which is created and which exists for the predominant
purpose of regularly holding or conducting religious activities
or religious education, without pecuniary benefit to any
officer, member or shareholder except as reasonable compensation
for actual services rendered to the organization.
"Veterans organization." Any congressionally chartered
organization within this Commonwealth, or any branch or lodge or
chapter of a nonprofit national or State organization within
this Commonwealth, the membership of which consists of
individuals who were members of the armed services or armed
forces of the United States. The term shall also include home
associations. Such organizations shall have been in existence in
this Commonwealth fulfilling their purposes for one year prior
to the date of application for a license.
"Weekly drawing." A game [of chance] in which a bona fide
member selects or receives a number or numbers for a chance at a
prize with the winner determined by a random drawing to take
place on the [licensed] eligible organization's [licensed]
premises at the end of a seven-day period. Nothing in this act
shall be construed to prohibit the carrying over of a jackpot
where the winning number has not been entered in the game in a
particular week. Weekly drawing winners may be determined with
the aid of a passive selection device or reference to drawings
conducted by the Department of Revenue pursuant to the act of
August 26, 1971 (P.L.351, No.91), known as the State Lottery
Law. Weekly drawing chances may not be sold for an amount in
excess of $1.
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Section 301. Games of chance permitted.
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] Proceeds from a game of
chance must be used exclusively for public interest purposes or
for the purchase of games of chance as permitted by this act.
Section 302. Prize limits.
[(a) Individual prize limit.--Except as provided under
subsections (d) and (d.1), the maximum prize which may be
awarded for any single chance shall be $1,000.
(b) Aggregate prize limit.--No more than $25,000 in prizes
shall be awarded from games of chance by a licensed eligible
organization in any seven-day period.
(c) Raffle prize limit.--Up to $10,000 in prizes may be
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).]
(a) Individual prize limit.--The maximum cash value which
may be awarded for any single chance shall be $500.
(b) Weekly limit.--No more than $5,000 in cash or
merchandise shall be awarded by an eligible organization in any
seven-day period.
(c) Limit on raffles.--No more than $5,000 in cash or
merchandise shall be awarded in raffles in any calendar month.
(d) Exception for raffles.--[Notwithstanding subsection (b)
or (c), a licensed] An eligible organization may conduct a
raffle and award a prize or prizes valued in excess of [$1,000]
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$500 each only under the following conditions:
(1) The licensing authority has issued a special permit
for the raffle under section 308.
(2) [A licensed] An eligible organization shall be
eligible to receive no more than [eight] two special permits
in any licensed [term] year except that a volunteer fire,
ambulance or rescue organization [that is not a club
licensee] shall be eligible to receive [ten] no more than
three special permits in any licensed [term] 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] The
total cash value of all prizes [awarded under this
subsection] shall be no more than $100,000 per calendar year.
[(d.1) Additional award.--A volunteer fire, ambulance or
rescue organization may, in addition to the total under
subsection (d)(4), award up to $50,000 from raffles which shall
not be subject to the aggregate limit under subsection (b), (c)
or (d).]
(e) Limit on daily drawings.--Daily drawings shall be
governed by the prize limitations under subsections (a) and (b).
An eligible organization may not conduct daily drawings during a
period when a weekly drawing is taking place.
(f) Daily drawing carryover.--The prize limitation contained
in subsections (a) and (b) may be exceeded by a daily drawing
under the following circumstances: a daily drawing may award a
prize with a cash value in excess of [$1,000] $500 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
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authorize the prize limitation as contained in subsections (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)
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 [$25,000] $5,000 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. An eligible organization may not conduct
weekly drawings during a period when a daily drawing is taking
place.
Section 303. Sales limited.
(a) General rule.--No person shall sell, offer for sale or
furnish games of chance for use within this Commonwealth except
to an eligible organization or licensed distributor under this
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chapter.
(b) Limitation.--No game of chance, other than a raffle
under section 302(d), 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] cash value in excess of [$1,000] $500.
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
register and distributors of games of chance may apply for
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
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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.
(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.
[(c) Reporting requirements.--Each eligible organization
shall submit an annual report to the department including:
(1) Prizes awarded as required under section 335 of the
act of March 4, 1971 (P.L.6, No.2), known as the Tax Reform
Code of 1971.
(2) Amounts expended for public interest purposes.]
Section 307. Licensing of eligible organizations to conduct
games of chance.
(a) License required.--No eligible organization shall
conduct or operate any games of chance unless such eligible
organization has obtained and maintains a valid license [or
limited occasion] license issued pursuant to this section. An
auxiliary group of [a licensed] an eligible organization shall
be eligible to conduct games of chance using the license issued
to the eligible organization provided that the auxiliary group
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or groups are listed on the application and license of the
eligible organization. [An auxiliary group is not eligible to
obtain a license or a limited occasion license.] No additional
licensing fee shall be charged for an auxiliary group's
eligibility under this chapter. Auxiliary groups shall not
include branches, lodges or chapters of a Statewide
organization.
(b) Issuance and fees.--The licensing authority shall
license, upon application, within 30 days any eligible
organization meeting the requirements for licensure contained in
this chapter to conduct and operate games of chance at such
locations within the county or in such manner as stated on the
application as limited by subsection (b.1). The license fee to
be charged to each eligible organization shall be $100, except
for limited occasion licenses which shall be $10. Licenses shall
be renewable annually upon the anniversary of the date of issue.
[The license fee shall be used by the licensing authority to
administer this act.]
(b.1) Location of small games of chance.--
[(1) Every licensed eligible organization, except a
limited occasion licensee, may conduct small games of chance
only at a licensed premises. The licensed premises shall be
indicated on the eligible organization's license application.
Only one license shall be issued per licensed premises.
Except as provided under paragraph (4), a licensed eligible
organization may not share a licensed premises with another
licensed eligible organization; and no licensed eligible
organization may permit its premises to be used for small
games of chance by another licensed eligible organization.]
(2) Where there exists a location or premises which is
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the normal business or operating site of the eligible
organization and the location or premises is owned or leased
by that eligible organization to conduct its normal business,
that site shall be the eligible organization's licensed
premises. If that location consists of more than one
building[, the eligible organization shall choose the
building that will be the licensed premises.] and the
eligible organization wishes to conduct its games in a
different building at that location from the one that is
listed on its application and license, the eligible
organization must notify in writing the district attorney and
the licensing authority of the change in building site and
the dates and times that will be affected.
(3) [When an eligible organization does not own or lease
a specific location to conduct its normal business, the
eligible organization may make arrangements that are
consistent with this act to establish a licensed premises,
including leasing a premise under a written agreement for a
rental; however, the rental may not be determined by either
the amount of receipts realized from the conduct of games of
chance or the number of people attending. An eligible
organization may lease a facility for a banquet in connection
with the serving of a meal based on a per-head charge.] If an
eligible organization does not own or lease a specific
location to conduct its normal business, the eligible
organization may use another eligible organization's premises
to conduct its games or may make other arrangements that are
consistent with this act, including leasing a premise under a
written agreement for a rental which is not determined by
either the amount of receipts realized from the playing of
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games of chance or the number of people attending. An
eligible organization may lease a facility for a banquet in
connection with the serving of a meal based on a per-head
charge. If the eligible organization changes the site of its
games from that which is listed on its application and
license, the eligible organization must notify in writing the
district attorney and licensing authority of the change in
their games' site and dates and times that will be affected.
[(4) An eligible organization that has obtained a
limited occasion license under subsection (b.3) may use
another eligible organization's licensed premises to conduct
its games of chance. When a licensed eligible organization is
permitting a limited occasion licensee to use its licensed
premises for purposes of games of chance, it shall cease the
operation of its own games of chance during the period that
the limited occasion licensee is conducting its games on the
premises.]
(b.2) Off-premises games of chance.--Notwithstanding any
other provisions of this section, [all of the following apply:
(1) A licensed] an eligible organization may conduct
games of chance at a location off its premises when the games
of chance are part of an annual carnival, fair, picnic or
banquet held or participated in by that [licensed] eligible
organization on a historical basis. The [licensed] eligible
organization must notify, in writing, the district attorney
and licensing authority of the location, date and times of
the event where it will be conducting small games of chance.
[(2) Raffle tickets may be sold off the licensed
premises in a municipality which has adopted the provisions
of this act by an affirmative vote in a municipal referendum.
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A licensed eligible organization which plans to sell raffle
tickets in a municipality located in a county other than the
county in which the eligible organization is licensed shall
notify that county's district attorney and licensing
authority as to the location and the dates that the licensed
eligible organization plans to sell raffle tickets.]
(b.3) Limited occasion licenses.--Eligible organizations
which do not own their own premises or which do not lease a
specific location to conduct their normal business may apply for
a limited occasion license to conduct games of chance on not
more than three occasions covering a total of seven days during
a licensed year. A limited occasion license entitles an eligible
organization to conduct no more than two raffles during a
licensed year where prizes may not exceed the established limits
for regular monthly raffles. Holders of a limited occasion
license may not apply or be granted any other license or special
permit under this act. No holder of a regular license or special
permit under this act shall apply or be granted a limited
occasion license.
(b.4) Gambling facility prohibited.--It shall be unlawful
for a person, corporation, association, partnership or other
business entity to offer for rent or offer for use a building or
facility to be used exclusively for the conduct of games of
chance. It shall also be unlawful for any eligible organization
to lease under any terms a building or facility which is used
exclusively for the conduct of small games of chance.
(c) Display.--Licenses issued pursuant to this section shall
be publicly displayed at the site where small games of chance
are conducted.
(d) Operation.--Each licensed eligible organization shall be
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prohibited from the following:
(1) Permitting any person under 18 years of age to
operate or play games of chance.
(2) Permitting any 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 ten years of a violation of the act of July 10, 1981
(P.L.214, No.67), known as the Bingo Law, or of this act to
manage, set up, supervise or participate in the operation of
games of chance.
(3) Paying any compensation to any person for conducting
any games of chance. Games of chance may only be conducted by
managers, officers, directors, bar personnel and bona fide
members of the eligible organization.
(4) Conducting games of chance on any premises other
than on the licensed premises or as otherwise provided by
this chapter.
(5) Leasing the licensed premises under either an oral
or a written agreement for a rental which is determined by
either the amount of receipts realized from the playing of
games of chance or the number of people attending, except
that an eligible organization may lease a facility for a
banquet where a per head charge is applied in connection with
the serving of a meal. An eligible organization shall not
lease such premises from any person who has been convicted of
a violation of this act [or the Bingo Law] within the past
ten years.
(6) Purchasing games of chance, other than raffles,
daily drawings and weekly drawings, from any person other
than a registered manufacturer or licensed distributor
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approved by the department.
(7) Permitting its premises to be used for small games
of chance by another licensed eligible organization at the
same time that it is conducting small games of chance on the
premises. If a licensed eligible organization is permitting
another licensed eligible organization to use its premises
for purposes of small games of chance, it must cease the
operation of its own small games of chance during the period
that the other licensed eligible organization is conducting
its games on the premises.
(8) Selling raffle tickets off the licensed premise in
any municipality in this Commonwealth which has adopted the
provisions of this act by an affirmative vote in a municipal
referendum. A licensed eligible organization which plans to
sell raffle tickets in a municipality located in a county
other than the county in which the eligible organization is
licensed must notify that county's district attorney and
licensing authority as to the location and the dates that the
eligible organization plans to sell raffle tickets.
[(d.1) Bank account and records.--The licensed eligible
organization shall keep a bank account to hold the proceeds of
games of chance, 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.]
(e) Application for license.--Each eligible organization
shall apply to the licensing authority for a license on a form
to be prescribed by the Secretary of Revenue. [For a club
license, the application and each renewal application shall
include the most recent annual report filed by the club licensee
20120HB2649PN4121 - 19 -
under Chapter 5.] The form shall contain an affidavit to be
affirmed by the executive officer or secretary of the eligible
organization stating that:
(1) No person under 18 years of age will be permitted by
the eligible organization to operate or play games of chance.
(2) The facility in which the games of chance are to be
played has adequate means of ingress and egress and adequate
sanitary facilities available in the area.
(3) The eligible organization is not leasing such
premises from the owner thereof under an oral agreement, nor
is it leasing such premises from the owner thereof under a
written agreement at a rental which is determined by the
amount of receipts realized from the playing of games of
chance or by the number of people attending, except that an
eligible organization may lease a facility for a banquet
where a per head charge is applied in connection with the
serving of a meal.
[(e.1) Proceedings.--Proceedings before the licensing
authority are subject to 2 Pa.C.S. Chs. 5 Subch. B (relating to
practice and procedure of local agencies) and 7 Subch. B
(relating to judicial review of local agency action).]
(f) List of licensees.--The licensing authority, on a
semiannual basis, shall send a copy of all licensees to the
department.
(g) List of municipalities.--The licensing authority shall
include with any license or renewal license issued to an
eligible organization, an up-to-date listing of those
municipalities within the licensing county which have approved
the referendum question on small games of chance.
[(h) Background checks.--Each application for a license
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shall include the results of a criminal history record
information check obtained from the Pennsylvania State Police,
as defined in 18 Pa.C.S. § 9102 (relating to definitions) and
permitted by 18 Pa.C.S. § 9121(b) (relating to general
regulations), for the executive officer and secretary of the
eligible organization making the application for a license or
any other person required by the department.]
Section 308. Special 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 having a cash
value in excess of [$1,000] $500. 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
held, the number of chances to be sold, the price per chance and
the cash value of the prize to be awarded.
Section 2. Sections 501, 502, 503, 504 and 505 of the act,
added February 2, 2012 (P.L.7, No.2), are repealed:
[Section 501. Club licensee.
(a) Report.--
(1) Beginning in 2013, a club licensee shall submit
semiannual reports to the department for the preceding six-
month period on a form and in a manner prescribed by the
department.
(2) The report must be filed under oath or affirmation
of an authorized officer of the club licensee.
(3) The report shall include all of the following
information:
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(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) The verification of amounts distributed for
public interest purposes itemized under section
502(a) (1), itemized by the recipient.
(v) An itemized list of expenditures made or amounts
retained and expenditures under section 502(a) (2).
(vi) The address and the county in which the club
licensee is located.
(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.
(c) Posting.--The reports under subsection (a) shall be
published on the department's Internet website.
Section 502. Distribution of proceeds.
(a) Distribution.--The proceeds from games of chance
received by a club licensee shall be distributed as follows:
(1) No less than 70% of the proceeds shall be paid to
organizations for public interest purposes in the calendar
year in which the proceeds were obtained.
(2) No more than 30% of the proceeds obtained in a
calendar year may be retained by a club licensee and used for
the following operational expenses relating to the club
licensee:
(i) Real property taxes.
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(ii) Utility and fuel costs.
(iii) Heating and air conditioning equipment or
repair costs.
(iv) Water and sewer costs.
(v) Property or liability insurance costs.
(vi) Mortgage payments.
(vii) Interior and exterior repair costs, including
repair to parking lots.
(viii) New facility construction costs.
(ix) Entertainment equipment, including television,
video and electronic games.
(x) Other expenses adopted in regulation by the
department.
(a.1) Amounts retained.--Amounts retained by a club licensee
under subsection (a)(2) shall be expended within the same
calendar year unless the club licensee notifies the department
that funds are being retained for a substantial purchase or
project. Notification shall include a description of the
purchase or project, the cost and the anticipated date of the
purchase or project.
(b) Prohibition.--
(1) Proceeds shall not be used for wages, alcohol or
food purchases or for the payment of any fine levied against
the club licensee.
(2) An officer or employee of a club licensee who
operates the game of chance shall not participate in the
game. This paragraph shall not apply to a raffle.
Section 503. Records.
A club licensee shall maintain records as required by this
act or by the department, including invoices for games of chance
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purchased. Records necessary to conduct an audit under section
702(b) shall be made available to the Bureau of Liquor Control
Enforcement or other entity authorized to enforce this act.
Section 504. Raffle tickets.
A club licensee shall maintain records relating to the
printing or purchase of raffle tickets. Records shall include a
receipt or invoice from the place of purchase that shows the
cost and number or amount of tickets purchased.
Section 505. Weekly drawings.
A club licensee shall maintain records relating to the
printing or purchase of materials to be used for weekly
drawings. Records shall include a receipt or invoice from the
place of purchase that shows the cost and number or amount of
materials purchased.]
Section 3. Sections 701, 702 and 705 of the act, renumbered
and 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] licensing
authority shall revoke or refuse to renew the license of an
eligible organization if the district attorney finds upon
complaint and investigation that:
(1) Any of the [proceeds] funds derived from the
operation of games of chance [by an eligible organization]
are used for any purpose other than for:
(i) public interest purposes;
(ii) the purchase of games of chance; or
(iii) a purpose permitted by [Chapter 5] this act.
[(1.1) Any of the funds derived from the operation of
games of chance by a club licensee are used in a manner that
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does not comply with section 502.]
(2) Any person under 18 years of age is operating or
playing games of chance.
(3) The eligible organization has permitted any 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 ten years of a
violation of the act of July 10, 1981 (P.L.214, No.67), known
as the Bingo Law, or of this act, to manage, set up,
supervise or participate in the operation of games of chance.
(4) The facility in which the games of chance are played
does not have adequate means of ingress and egress and does
not have adequate sanitary facilities available in the area.
(5) Any person or persons other than a manager, officer,
director, bar personnel or a bona fide member of an eligible
organization have been involved in managing, setting up,
operating or running games of chance.
(6) Any person has received compensation for conducting
games of chance.
(7) Any prize has been awarded in excess of the limits
permitted under this act.
(8) The eligible organization has violated any condition
of a special permit issued pursuant to section 308.
(9) The eligible organization conducts the games of
chance under a lease which calls for:
(i) leasing such premises from the owner thereof
under an oral agreement; or
(ii) leasing such premises from the owner thereof
under a written agreement at a rental which is determined
by the amount of receipts realized from the playing of
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games of chance.
(10) False or erroneous information was provided in the
original application [or in any information provided to the
licensing authority or the department in any report].
(11) An eligible organization has been convicted of a
violation of this act as evidenced by a certified record of
the conviction.
(12) The eligible organization has permitted another
eligible organization to conduct games of chance on its
licensed premises without suspending its own operation of
games of chance during the period that the other licensed
eligible organization is conducting its games on the
premises.
[(13) A club licensee has failed to file an accurate
report under section 501(a).
(14) A club licensee has failed to comply with section
502.
(15) Failure to file reports under section 501.]
(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.] 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 whether a license should be revoked or
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renewal of the license denied. Licensees shall be required to
produce their license, books, accounts and records relating to
the conduct of games of chance to other law enforcement
officials upon proper request.
Section 702. Enforcement.
[(a) Licensing authority.--The licensing authority may
enforce the provisions of this act and may impose the penalties
under subsection (d).
(b) Bureau of Liquor Control Enforcement.--If the licensee
is a club licensee, the Bureau of Liquor Control Enforcement may
enforce the provisions of this act. 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.
(c) Random audits.--The Bureau of Liquor Control Enforcement
shall conduct annual random audits of 5% of all club licensees.
(d) Powers and duties.--The licensing authority, or, in the
case of a club licensee, the Bureau of Liquor Control
Enforcement, may impose the following penalties:
(1) A civil penalty.
(2) Suspension or revocation of the license.
(e) District attorney.--The district attorney of the county
that issued the license 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.
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(f) Law enforcement officials.--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.
(g) General rule.--
(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.]
(a) District attorney.--A district attorney shall
investigate alleged violations of this act. If the district
attorney finds probable cause to believe that a violation has
occurred, he may file a 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, and shall prosecute the complaint in the manner
provided by law.
(b) Other law enforcement officials.--Nothing in this act
shall be interpreted to restrict the power of State, county or
local law enforcement officials to conduct investigations and
enforce this act.
Section 705. Certain persons prohibited.
No [licensed] distributor nor any person who has been
convicted of a felony or of a violation of the act of July 10,
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1981 (P.L.214, No.67), known as the Bingo Law, or of this act or
of any comparable State or Federal law shall have a pecuniary
interest in the operation or in proceeds.
Section 4. Section 706 of the act, added February 2, 2012
(P.L.7, No.2), is repealed:
[Section 706. Civil penalties.
(a) Penalty.--An eligible organization, other than a club
licensee, 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.
(b) Club licensee.--A club licensee that violates the
provisions of this act shall be subject to the following civil
penalties:
(1) For an initial violation, up to $800.
(2) For a second violation, up to $1,000.
(3) For a third or subsequent violation, up to $2,000.
(c) Records.--The intentional or willful failure of a club
licensee to provide accurate records shall result in a license
suspension of a minimum of six months.]
Section 5. Section 707 of the act, renumbered and amended
February 2, 2012 (P.L.7, No.2), is amended to read:
Section 707. Criminal penalties.
(a) Eligible organizations [and club licensees].--Any
eligible organization violating the provisions of this act shall
be guilty of a summary offense 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]. In
addition:
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(1) For a first offense, the eligible organization shall
forfeit the license to conduct games of chance issued to the
eligible organization for [a period of not more than 30 days]
the remainder of the licensing period or six months,
whichever is longer.
(2) For a second offense, the eligible organization
shall forfeit its license for [a period of not less than 30
days nor more than 180 days] the remainder of the current
licensing period and shall be ineligible to be licensed for
the following licensing period.
(3) For a third or subsequent offense [within three
years of the first offense], the eligible organization shall
forfeit its license and be ineligible for a license renewal
for 30 months thereafter.
(b) Individuals.--Any person who conducts or assists in the
conducting of games of chance 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.
(c) Distributors and manufacturers.--Any person who
distributes games of chance without a license or in violation of
any provision of this act or applicable regulations, and any
manufacturer of games of chance who delivers games of chance for
sale or distribution in this Commonwealth who fails to [register
and] obtain a permit therefor is guilty of a misdemeanor of the
first degree, provided that no license or permit shall be
required for the manufacture or distribution of raffle tickets.
(d) Rigging.--A person commits a misdemeanor of the first
degree if, with intent to prevent a game of chance from being
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conducted in accordance with the requirements of this act or the
rules and usages governing the game of chance, he:
(1) confers or offers or agrees to confer any benefit
upon or threatens any injury to a participant or other person
associated with the game of chance;
(2) tampers with any person or game of chance; or
(3) solicits, accepts or agrees to accept any benefit.
(e) Contingent fees.--Any person who distributes,
manufactures or operates a small game of chance and who
requires, for equipment furnished or to play a game of chance,
payment equal to a percentage of the total winnings of any game
of chance commits a misdemeanor of the first degree.
Section 6. This act shall take effect in 60 days.
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