Bill Text: PA HB290 | 2013-2014 | Regular Session | Introduced

NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Further providing for definitions and for games of chance permitted; providing for prohibition regarding pools; further providing for prize limits and for limited sales; providing for raffle sales; further providing for distributor licenses, for registration of manufacturers, for regulations of department, for licensing of eligible organizations to conduct games of chance, for special permits and for revocation of licenses; providing for affiliated clubs; further providing for enforcement; and providing for pool selling.

Spectrum: Bipartisan Bill

Status: (Passed) 2013-11-27 - Act No. 92 [HB290 Detail]

Download: Pennsylvania-2013-HB290-Introduced.html








Session of














1Amending the act of December 19, 1988 (P.L.1262, No.156),
2entitled, as amended, "An act providing for the licensing of
3eligible organizations to conduct games of chance, for the
4licensing of persons to distribute games of chance, for the
5registration of manufacturers of games of chance, and for
6suspensions and revocations of licenses and permits;
7requiring records; providing for local referendum by
8electorate; and prescribing penalties," in preliminary
9provisions, further providing for definitions and providing
10for relationship to table games; in games of chance, further
11providing for games of chance permitted, for prize limits,
12for regulations of the Department of Revenue and for
13licensing of eligible organizations to conduct games of
14chance; in club licensees, further providing for reports by a
15club licensee and for distribution of proceeds; in
16enforcement, further providing for enforcement by the Bureau
17of Liquor Control Enforcement; and abrogating regulations.

18The General Assembly of the Commonwealth of Pennsylvania
19hereby enacts as follows:

20Section 1. The definitions of "games of chance" and "public
21interest purpose" in section 103 of the act of December 19, 1988
22(P.L.1262, No.156), known as the Local Option Small Games of
23Chance Act, amended February 2, 2012 (P.L.7, No.2), are amended

1and the section is amended by adding definitions to read:

2Section 103. Definitions.

3The following words and phrases when used in this act shall
4have the meanings given to them in this section unless the
5context clearly indicates otherwise:

6* * *

7"A night at the races." A game in which a participant places
8a wager on a prerecorded horse race.

9* * *

10"Coin auction." A game in which a participant buys a
11numbered paddle for a chance to bid on a donated prize with the
12winner determined by a random drawing of corresponding numbers.

13 * * *

14"Games of chance." Punchboards, daily drawings, weekly 
15drawings, 50/50 drawings, raffles, selective raffles, coin 
16auctions, a night at the races, Texas Hold'em card tournament, 
17vertical wheel game and pull-tabs, as defined in this act, 
18provided that no such game shall be played by or with the 
19assistance of any mechanical or electrical devices or media 
20other than a dispensing machine or passive selection device and 
21further provided that the particular chance taken by any person 
22in any such game shall not be made contingent upon any other 
23occurrence or the winning of any other contest, but shall be 
24determined solely at the discretion of the purchaser. This 
25definition shall not be construed to authorize any other form of 
26gambling currently prohibited under any provision of Title 18 of 
27the Pennsylvania Consolidated Statutes (relating to crimes and 
28offenses) or authorized under 4 Pa.C.S. (relating to 
29amusements). Nothing in this act shall be construed to authorize 
30games commonly known as "slot machines" or "video poker."

1* * *

2"Public interest purpose." One or more of the following:

3(1) The activities and operations of a nonprofit 
4benevolent, religious, educational, philanthropic, humane, 
5scientific, patriotic, social welfare, social advocacy, 
6public health, public safety, emergency response, 
7environmental or civic objective.

8(2) Initiating, performing or fostering worthy public
9works or enabling or furthering the erection or maintenance
10of public structures.

11(3) Lessening the burdens borne by government or
12voluntarily supporting, augmenting or supplementing services
13which government would normally render to the people.

14(4) Improving, expanding, maintaining or repairing real
15property owned or leased by an eligible organization and
16relating operational expenses used for purposes specified in
17paragraphs (1), (2) and (3).

18The term does not include the erection or acquisition of any
19real property, unless the property will be used [exclusively]
20for one or more of the purposes specified in this definition.

21* * *

22"Selective raffle." A game in which all of the following

24(1) The participant buys a ticket or tickets for a
25chance to win a donated prize.

26(2) The participant places the ticket or tickets in a
27designated location for the prize which the participant would
28like to win.

29(3) The winner for each prize is determined by a random
30drawing of tickets with a corresponding number for the prize.

1"Texas Hold'em card tournament." A community card game where
2each player may use any combination of five community cards and
3the player's own two hole cards to make a five-card poker hand.

4"Vertical wheel game." A game in which a participant places
5a coin or token on a color, number or word or purchases a ticket
6containing a color, number or word and watches a spinning
7vertical wheel until the pointer of the wheel rests on a section
8of the wheel designating a winner.

9* * *

10Section 2. The act is amended by adding a section to read:

11Section 104. Relationship to table games.

12A vertical wheel game or a Texas Hold'em card tournament is
13not a "table game" as defined in 4 Pa.C.S. § 1103 (relating to
14definitions). The designation of a vertical wheel game and Texas
15Hold'em card tournament under this act does not preclude the
16authorization of a vertical wheel game or a Texas Hold'em card
17tournament as a table game under 4 Pa.C.S. Pt. II (relating to

19Section 3. Section 301 of the act, amended October 24, 2012
20(P.L.1462, No.184), is amended to read:

21Section 301. Games of chance permitted.

22Every eligible organization to which a license has been 
23issued under the provisions of this chapter may conduct games of 
24chance for the purpose of raising funds for public interest 
25purposes. Except as provided in Chapter 5, all proceeds of a 
26licensed eligible organization shall be used exclusively for 
27public interest purposes, for the purchase of games of chance, 
28for the payment of the license fee or for the payment of the fee 
29for background checks, as required by this act. An eligible 
30organization, except a club licensee, may use its proceeds from 

1games of chance to fulfill its own public interest purpose.

2Section 4. Section 302 of the act is amended by adding a
3subsection to read:

4Section 302. Prize limits.

5* * *

6(e.1) Texas Hold'em requirements.--A licensed eligible
7organization shall charge an entry fee of not more than $10 per
8person to play in a Texas Hold'em tournament. The licensed
9eligible organization shall pay out prizes to no more than the
10top five winning persons in a declining manner based on the
11player's final placement in the tournament. The prize pool shall
12consist solely of entry fees collected.

13* * *

14Section 5. Section 306(b) and (c) of the act, amended
15October 24, 2012 (P.L.1462, No.184), are amended and the section
16is amended by adding subsections to read:

17Section 306. Regulations of department.

18* * *

19(a.1.) Review.--The department shall, on an annual basis,
20review this act and regulations promulgated under this act to
21determine if regulations relating to games of chance require
22revision. If the department determines that the regulations need
23modification, the department may promulgate such regulations
24within 60 days of its review.

25(a.2) Expansion.--The department may authorize any
26additional games of chance for eligible organizations, except
27for club licensees, and promulgate regulations it deems
28necessary for such additional games of chance. The department
29may consult with law enforcement officials responsible for
30enforcement of this act prior to authorizing any additional

1games of chance. Additional games of chance shall not include
2any games that require Internet access for play.

3(b) Limitation on recordkeeping requirements.--This section
4shall not be construed to authorize the department to promulgate
5regulations providing for recordkeeping requirements for
6licensed eligible organizations which require unreasonable or
7unnecessary information or a repetitious listing of information.
8The department shall strive to keep such recordkeeping
9requirements from being an undue hardship or burden on licensed
10eligible organizations. For individual prizes in excess of $600, 
11records shall include the name and address of the winner. An 
12eligible organization shall not obtain or retain receipts of 
13prizes that are donated. An eligible organization shall provide 
14each winner with a receipt of the value of the prize won, unless 
15the prize is cash. Except as provided under section 701(b), the
16department may not require the retention of records for a period
17in excess of two years.

18(c) Reporting requirements.--[Each eligible organization
19which has proceeds in excess of $2,500 in a calendar year shall
20submit an annual report to the department including:] Except for 
21an organization licensed under section 307(b)(1)(i), each 
22eligible organization shall submit an annual report to the 
23department for the 12-month period commencing upon the 
24anniversary of the date the license was issued. The form for the 
25report shall be available in a paper form from the licensing 
26authority and from the department's Internet website. The report 
27may be filed by mail to the department or by the department's 
28Internet website. The report shall include the following:

29(1) Prizes awarded as required under section 335 of the
30act of March 4, 1971 (P.L.6, No.2), known as the Tax Reform

1Code of 1971.

2(2) Amounts expended for public interest purposes.

3Section 6. Section 307(a), (b), (b.1), (b.2), (b.3), (d.1)
4and (h) of the act, amended February 2, 2012 (P.L.7, No.2) and
5October 24, 2012 (P.L.1462, No.184), are amended and subsection
6(b.1) is amended by adding a paragraph to read:

7Section 307. Licensing of eligible organizations to conduct
8games of chance.

9(a) License required.--No eligible organization shall
10conduct or operate any games of chance unless such eligible
11organization has obtained and maintains a valid license [or 
12limited occasion license] issued pursuant to this section. An 
13auxiliary group of a licensed eligible organization shall be
14eligible to conduct games of chance using the license issued to
15the eligible organization provided that the auxiliary group [or
16groups are] is listed on the application and license of the
17eligible organization. An auxiliary group is not eligible to 
18obtain a license [or a limited occasion license]. No additional
19licensing fee shall be charged to an eligible organization for
20an auxiliary [group's eligibility under this chapter. Auxiliary
21groups] group of the organization. An auxiliary group shall not
22include branches, lodges or chapters of a Statewide

24(b) Issuance and fees.--The following shall apply:

25(1) [The licensing authority shall license, upon
26application, within 30 days any eligible organization] Within 
2730 days of receiving an application by an organization, the 
28licensing authority shall grant a license to an eligible 
29organization meeting the requirements for licensure contained
30in this chapter to conduct and operate games of chance at

1such locations within the county or in such manner as stated
2on the application as limited by subsection (b.1). The
3license fee to be charged to [each] an eligible organization
4shall be [$100, except for limited occasion licenses which
5shall be $10] as follows:

6(i) For an eligible organization making $40,000 or
7less a year in proceeds from games of chance, $25.

8(ii) For an eligible organization making more than 
9$40,000 in proceeds from games of chance, $100.

10(2) Licenses shall be [renewable annually upon] issued 
11for a period of one year and may be renewed on or after the
12anniversary of the date of issue. The license fee shall be 
13used by the licensing authority to administer this act.

14(b.1) Location of games of chance.--

15(1) Except as otherwise provided in this section, a
16licensed eligible organization[, except a limited occasion
17licensee,] may conduct small games of chance at a licensed
18premises. The licensed premises shall be indicated on the
19eligible organization's license application. [Only one
20license shall be issued per licensed premises. Except as
21provided under paragraph (4), a licensed eligible
22organization may not share a licensed premises with another
23licensed eligible organization; and no licensed eligible
24organization may permit its premises to be used for small
25games of chance by another licensed eligible organization.]

26(2) Where there exists a location or premises which is
27the normal business or operating site of the eligible
28organization and the location or premises is owned or leased
29by that eligible organization to conduct its normal business,
30that site shall be the eligible organization's licensed

1premises. If that location consists of more than one
2building, the eligible organization shall identify the 
3building that will be designated as the licensed premises.

4(2.1) If an eligible organization wishes to conduct
5games of chance in a different location from the location
6that is listed on its application and license, the eligible
7organization must submit a written request to the district
8attorney. The request must include the change in the location
9and the dates and times the games of chance will be operated
10at the new location. The district attorney may approve or
11deny the request or stipulate additional requirements as a
12condition of approval.

13(3) When an eligible organization does not own or lease
14a specific location to conduct its normal business, the
15eligible organization may use the premise of another eligible 
16organization to conduct games of chance or may make
17arrangements that are consistent with this act to establish a 
18licensed premises, including leasing a premise under a
19written agreement for a rental; however, the rental may not 
20be determined by either the amount of receipts realized from
21the conduct of games of chance or the number of people
22attending. An eligible organization may lease a facility for
23a banquet in connection with the serving of a meal based on a 
24per-head charge. Prior to the use of the premises of another 
25eligible organization to conduct games of chance, an eligible 
26organization must notify, in writing, the district attorney 
27regarding the location of the premise and the dates and times 
28the games of chance will be operated.

29[(3.1) Notwithstanding paragraphs (1), (2) and (3), if
30an eligible organization is unable to conduct games of chance

1at the location listed on its application and license due to
2natural disaster, fire or other circumstance that renders the
3location unusable, the eligible organization may submit a
4written request to the district attorney to conduct games of
5chance in a different location, including the licensed
6premises of another eligible organization. The request must
7include the change in the location and the dates and times
8the games of chance will be operated at the alternative
9location. The district attorney shall establish a limit on
10the duration of the authorization to conduct games of chance
11at the alternative location. Following the expiration of the
12authorization period, the eligible organization must return
13to the location specified in its application and license or
14apply to the licensing authority for a new permanent location
15for the conduct of games of chance. The district attorney may
16approve or deny the request or stipulate additional
17requirements as a condition of approval. If an eligible
18organization permits another eligible organization to use its
19licensed premises to conduct games of chance under this
20paragraph, the eligible organization shall cease its
21operation of games of chance during the time the eligible
22organization utilizing its premises is conducting its games
23of chance] (Reserved).

24(3.2) Notwithstanding paragraphs (1), (2) and (3), the
25following eligible organizations established to raise funds
26shall not be required to conduct a 50/50 drawing or a raffle
27at a licensed premises or to own, lease or establish a
28licensed premises:

29(i) A nonprofit sports team.

30(ii) A primary or secondary school-sponsored club,

1sports team or organization.

2[(4) An eligible organization that has obtained a
3limited occasion license under subsection (b.3) may use
4another eligible organization's licensed premises to conduct
5its games of chance. When a licensed eligible organization is
6permitting a limited occasion licensee to use its licensed
7premises for purposes of games of chance, it shall cease the
8operation of its own games of chance during the period that
9the limited occasion licensee is conducting its games on the

11(5) For purposes of major league sports drawings, the
12facility at which a major league sports team conducts its
13games shall constitute a premises for purposes of this act.

14(b.2) Off-premises games of chance.--Notwithstanding any
15other provisions of this section, all of the following apply:

16(1) A licensed eligible organization may conduct games
17of chance at a location off its premises when the games of 
18chance are part of an annual carnival, fair, picnic or
19banquet held or participated in by that licensed eligible
20organization on a historical basis. The licensed eligible
21organization must notify, in writing, the district attorney
22and licensing authority of the location, date and times of
23the event where it will be conducting games of chance.

24(2) Raffle and 50/50 drawing tickets may be sold off the
25licensed premises in a municipality which has adopted the
26provisions of this act by an affirmative vote in a municipal
27referendum. A licensed eligible organization which plans to
28sell raffle and 50/50 drawing tickets in a municipality
29located in a county other than the county in which the
30eligible organization is licensed shall notify that county's

1district attorney and licensing authority as to the location
2and the dates that the licensed eligible organization plans
3to sell raffle tickets.

4[(b.3) Limited occasion licenses.--Eligible organizations
5which do not own their own premises or which do not lease a
6specific location to conduct their normal business may apply for
7a limited occasion license to conduct games of chance on not
8more than three occasions covering a total of seven days during
9a licensed year. A limited occasion license entitles an eligible
10organization to conduct no more than two raffles during a
11licensed year where prizes may not exceed the established limits
12for regular monthly raffles. Holders of a limited occasion
13license may not apply or be granted any other license or special
14permit under this act. No holder of a regular license or special
15permit under this act shall apply or be granted a limited
16occasion license.]

17* * *

18(d.1) Bank account and records.--The licensed eligible
19organization, except for an organization licensed under 
20subsection (b)(1)(i), shall keep a bank account to hold the
21proceeds of games of chance, which shall be separate from all
22other funds belonging to the licensed eligible organization.
23Account records shall show all expenditures and income and shall
24be retained by the licensed eligible organization for at least
25two years.

26* * *

27(h) Background checks.--Each application for a license
28submitted by an eligible organization [which has proceeds in
29excess of $2,500 in a year] , except for an organization 
30licensed under subsection (b)(1)(i), shall include the results

1of a criminal history record information check obtained from the
2Pennsylvania State Police, as defined in 18 Pa.C.S. § 9102
3(relating to definitions) and permitted by 18 Pa.C.S. § 9121(b)
4(relating to general regulations), for the executive officer and
5[secretary] treasurer of the eligible organization making the
6application for a license or any other person required by the

8Section 7. Sections 501 and 502 of the act, added February
92, 2012 (P.L.7, No.2), are amended to read:

10Section 501. Club licensee.

11(a) Report.--

12(1) Beginning in 2013, a club licensee shall submit
13semiannual reports to the department for the preceding six-
14month period on a form and in a manner prescribed by the
15department. The form shall be available in a paper form from 
16the licensing authority and from the department's Internet 
17website. The report may be filed by mail to the department or 
18by the department's Internet website.

19(2) The report must be filed under oath or affirmation
20of an authorized officer of the club licensee.

21(3) The report shall include all of the following

23(i) The proceeds received by the club licensee from
24each game of chance conducted, itemized by week.

25(ii) The amount of prizes paid from all games of
26chance, itemized by week.

27(iii) Other costs incurred related to the conduct of 
28games of chance.

29(iv) The verification of amounts distributed for 
30public interest purposes itemized under section 

1[502(a)(1)] 502(a)(2)(i), itemized by the recipient.

2(v) An itemized list of expenditures made or amounts 
3retained and expenditures under section [502(a)(2)] 

5(vi) The address and the county in which the club 
6licensee is located.

7(vii) Other information or documentation required by 
8the department.

9(b) Distribution.--The department shall provide a copy of
10the report to the Bureau of Liquor Control Enforcement.

11(c) Posting.--The reports under subsection (a) shall be
12published on the department's Internet website.

13Section 502. Distribution of proceeds.

14(a) Distribution.--The proceeds from games of chance
15received by a club licensee shall be distributed as follows:

16[(1) No less than 70% of the proceeds shall be paid to
17organizations for public interest purposes in the calendar
18year in which the proceeds were obtained.

19(2) No more than 30% of the proceeds obtained in a
20calendar year may be retained by a club licensee and used for
21the following operational expenses relating to the club

23(i) Real property taxes.

24(ii) Utility and fuel costs.

25(iii) Heating and air conditioning equipment or
26repair costs.

27(iv) Water and sewer costs.

28(v) Property or liability insurance costs.

29(vi) Mortgage payments.

30(vii) Interior and exterior repair costs, including

1repair to parking lots.

2(viii) New facility construction costs.

3(ix) Entertainment equipment, including television,
4video and electronic games.

5(x) Other expenses adopted in regulation by the

7(1) $40,000 may be retained by the club licensee. There
8are no restrictions on the use of these proceeds by the club

10(2) Any club licensee proceeds remaining after
11distribution under paragraph (1) shall be distributed as

13(i) No less than 70% of the proceeds shall be paid
14to organizations for public interest purposes in the
15calendar year in which the proceeds were obtained.

16(ii) No more than 30% of the proceeds obtained in a
17calendar year may be retained by a club licensee and used
18for the following operational expenses relating to the
19club licensee:

20(A) Real property taxes.

21(B) Utility and fuel costs.

22(C) Heating and air conditioning equipment or
23repair costs.

24(D) Water and sewer costs.

25(E) Property or liability insurance costs.

26(F) Mortgage payments.

27(G) Interior and exterior repair costs,
28including repair to parking lots.

29(H) New facility construction costs.

30(I) Entertainment equipment, including

1television, video and electronic games.

2(J) Other expenses adopted in regulation by the

4(a.1) Amounts retained.--Amounts retained by a club licensee
5under subsection (a)(2) shall be expended within [the same
6calendar year] a 12-month period from when the proceeds were 
7received unless the club licensee notifies the department that
8funds are being retained for a substantial purchase or project.
9Notification shall include a description of the purchase or
10project, the cost and the anticipated date of the purchase or

12(b) Prohibition.--

13(1) Proceeds shall not be used for wages, alcohol or
14food purchases or for the payment of any fine levied against
15the club licensee.

16(2) An officer or employee of a club licensee who
17operates the game of chance shall not participate in the
18game. This paragraph shall not apply to a raffle.

19Section 8. Section 702(b) of the act, amended October 24,
202012 (P.L.1462, No.184), is amended to read:

21Section 702. Enforcement.

22* * *

23(b) Bureau of Liquor Control Enforcement.--The following 
24shall apply to enforcement:

25(1) If the licensee is a club licensee, the Bureau of Liquor 
26Control Enforcement may enforce the provisions of this act in 
27accordance with subsection (g). An administrative law judge 
28under section 212 of the act of April 12, 1951 (P.L.90, No.21), 
29known as the Liquor Code, may impose the penalties under 
30subsection (d) following the issuance of a citation by the 


2(2) The Bureau of Liquor Control Enforcement shall have no
3jurisdiction to enforce the provisions of this act on any
4special occasion permit holder under section 408.4 of the act of
5April 12, 1951 (P.L.90, No.21), known as the Liquor Code. The
6Bureau of Liquor Control Enforcement shall retain all powers and
7duties to enforce the provisions of the Liquor Code on a special
8occasion permit holder.

9* * *

10Section 9. The provisions of 61 Pa. Code §§ 901.463(4)
11(relating to raffle records), 901.464(9) (relating to punchboard
12and pull-tab records), 901.464a(9) (relating to daily and weekly
13drawing records), 901.466(1) (relating to prize records) and
14901.733(f) (relating to control of prizes) are abrogated.

15Section 10. This act shall take effect immediately.