THE GENERAL ASSEMBLY OF PENNSYLVANIA

HOUSE BILL

INTRODUCED BY HANNA, BRENNAN, CALTAGIRONE, HENNESSEY, HORNAMAN, KORTZ, MAHONEY, MENSCH AND J. TAYLOR, APRIL 22, 2009

REFERRED TO COMMITTEE ON GAMING OVERSIGHT, APRIL 22, 2009  

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

definitions and eligible organizations.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

Section 1.  Section 2 of the act of December 19, 1988

(P.L.1262, No.156), known as the Local Option Small Games of

Chance Act, is repealed:

[Section 2.  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.

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 2.  The definitions of "eligible organizations" and

"public interest purposes" in section 3 of the act are amended

and the section is amended by adding a definition to read:

Section 3.  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:

* * *

"Commercial establishment."  An establishment organized for

profit.

* * *

"Eligible organizations."  [Includes] The term includes

commercial establishments and qualifying nonprofit charitable,

religious, fraternal and veterans organizations, clubs and civic

and service associations as defined by this act. 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.

* * *

["Public interest purposes."  One or more of the following:

(1)  Benefiting persons by enhancing their opportunity

for religious or education advancement, by relieving or

protecting them from disease, suffering or distress, by

contributing to their physical, emotional or social well-

being, by assisting them in establishing themselves in life

as worthy and useful citizens or by increasing their

comprehension of and devotion to the principles upon which

this nation was founded.

(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 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.]

* * *

Section 3.  Sections 4 and 12(a) of the act, amended December

19, 1990 (P.L.812, No.195), are amended to read:

Section 4.  Games of chance permitted.

Every eligible organization to which a license has been

issued under the provisions of this act may conduct games of

chance [for the purpose of raising funds for public interest

purposes. All proceeds of games of chance shall be used

exclusively for public interest purposes or for the purchase of

games of chance as permitted by this act].

Section 12.  Revocation of licenses.

(a)  Grounds.--The licensing authority shall revoke or refuse

to renew the license of any eligible organization whenever the

district attorney finds upon complaint and investigation that:

[(1)  Any of the funds derived from the operation of

games of chance are used for any purpose other than for

public interest purposes or for the purchase of games of

chance as permitted by this act.]

(2)  Any person under 18 years of age is operating or

playing games of chance as defined in this act.

(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 11.

(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

games of chance.

(10)  False or erroneous information was provided in the

original application.

(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 small games of chance on its

licensed premises without suspending its own operation of

small games of chance during the period that the other

licensed eligible organization is conducting its games on the

premises.

* * *

Section 4.  This act shall take effect in 60 days.