PRINTER'S NO. 3385
No. 2411 Session of 2004
INTRODUCED BY SEMMEL, TIGUE, LEH, BELFANTI, BENNINGHOFF,
CAPPELLI, CORRIGAN, GEIST, GRUCELA, HALUSKA, HARHAI, KOTIK,
MARKOSEK, McCALL, PAYNE, SAINATO, SANTONI, SOLOBAY,
WASHINGTON, PALLONE AND MILLARD, MARCH 8, 2004
REFERRED TO COMMITTEE ON FINANCE, MARCH 8, 2004
AN ACT
1 Amending the act of December 19, 1988 (P.L.1262, No.156),
2 entitled, as amended, "An act providing for the licensing of
3 eligible organizations to conduct games of chance, for the
4 licensing of persons to distribute games of chance, for the
5 registration of manufacturers of games of chance, and for
6 suspensions and revocations of licenses and permits;
7 requiring records; providing for local referendum by
8 electorate; and prescribing penalties," further providing for
9 prize limits, for limited sales and for recordkeeping;
10 repealing certain provisions relating to advertising; and
11 further providing for eligible organizations' use of
12 locations for conducting small games of chance and for
13 separate individual prize limitations.
14 The General Assembly of the Commonwealth of Pennsylvania
15 hereby enacts as follows:
16 Section 1. Section 5 of the act of December 19, 1988
17 (P.L.1262, No.156), known as the Local Option Small Games of
18 Chance Act, amended December 19, 1990 (P.L.812, No.195) and
19 October 18, 2000 (P.L.602, No.79), is amended to read:
20 Section 5. Prize limits.
21 (a) Individual prize limit.--[The] Except as provided for in
22 subsection (i), maximum cash value which may be awarded for any
1 single chance shall be [$500] $1,000.
2 [(b) Weekly limit.--No more than $5,000 in cash or
3 merchandise shall be awarded by any eligible organization in any
4 seven-day period.]
5 (c) Limit on raffles.--No more than $5,000 in cash or
6 merchandise shall be awarded in raffles in any calendar month.
7 (d) Exception.--An eligible organization may conduct a
8 raffle and award a prize or prizes valued in excess of [$500]
9 $1,000 each only under the following conditions:
10 (1) The licensing authority has issued a special permit
11 for the raffle under section 11.
12 (2) Eligible organizations shall be eligible to receive
13 no more than two special permits in any licensed year except
14 that volunteer fire, ambulance and rescue organizations shall
15 be eligible to receive no more than three special permits in
16 any licensed year.
17 (3) Only one raffle may be conducted under each special
18 permit.
19 (4) The total cash value of all prizes shall be no more
20 than $100,000 per calendar year.
21 (e) Limit on daily drawings.--Daily drawings shall be
22 governed by the prize [limitations] limitation contained in
23 [subsections (a) and (b)] subsection (a). An eligible
24 organization shall not conduct daily drawings during a period
25 when a weekly drawing is taking place.
26 (f) Exception.--The prize limitation contained in
27 [subsections (a) and (b)] subsection (a) may be exceeded by a
28 daily drawing under the following circumstances: a daily drawing
29 may award a prize where the cash value is in excess of [$500]
30 $1,000 if such prize is the result of a carryover of a drawing
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1 or drawings which resulted from the winning number in such
2 drawing or drawings not being among the eligible entrants in
3 such drawings. Nothing contained herein shall authorize the
4 prize [limitations] limitation as contained in [subsections (a)
5 and (b)] subsection (a) to be exceeded as a result of a failure
6 to conduct a drawing on an operating day during which chances
7 were sold for a daily drawing or for a daily drawing for which
8 chances were sold in excess of $1 or for which more than one
9 chance was sold to an eligible participant.
10 [(g) Daily drawing and weekly drawing exception.--When a
11 daily drawing or weekly drawing is set up or conducted in such a
12 manner as to pay out or award 100% of the gross revenues
13 generated from such drawing, the limitations contained in
14 subsection (b) shall not apply.
15 (h) Limit on weekly drawings.--Weekly drawings shall be
16 governed by the prize limitations contained in subsection (b).
17 The prize limitation contained in subsection (b) may be exceeded
18 by a weekly drawing under the following circumstances: a weekly
19 drawing may award a prize where the cash value is in excess of
20 $5,000 if such prize is the result of a carryover of a drawing
21 or drawings which resulted from the winning number or numbers in
22 such drawing or drawings not being among the eligible entrants
23 in such drawings. Nothing contained in this act shall authorize
24 the prize limitations as contained in subsection (b) to be
25 exceeded as a result of a failure to conduct a drawing for a
26 week during which chances were sold for a weekly drawing or for
27 a weekly drawing for which chances were sold in excess of $1. An
28 eligible organization shall not conduct weekly drawings during a
29 period when a daily drawing is taking place.]
30 (i) Progressive games.--Progressive games shall be permitted
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1 with a maximum cash value of $25,000. For the purpose of this
2 section, progressive games are those in which a winning ticket
3 awards the ticket holder an additional chance at another game or
4 games.
5 Section 2. The act is amended by adding a section to read:
6 Section 5.1. Insured games.
7 Notwithstanding any provision of this act to the contrary, an
8 eligible organization may conduct small games of chance using
9 insured games. For the purposes of this section, an insured game
10 is a game in which the distributor or other third party
11 guarantees making the payment on a win of a jackpot.
12 Section 3. Sections 6, 9(b) and 10(b.1) of the act, amended
13 December 19, 1990 (P.L.812, No.195), are amended to read:
14 Section 6. Sales limited.
15 No person shall sell, offer for sale or furnish games of
16 chance for use within this Commonwealth except to an eligible
17 organization or distributor licensed under this act. No game of
18 chance, other than a raffle, sold, offered for sale or furnished
19 for use within this Commonwealth shall contain, permit, depict
20 or designate a prize having a cash value in excess of [$500]
21 $1,000.
22 Section 9. Regulations of department.
23 * * *
24 (b) Limitation on recordkeeping requirements.--This section
25 shall not be construed to authorize the department to promulgate
26 regulations providing for recordkeeping requirements for
27 eligible organizations which require unreasonable or unnecessary
28 information or a repetitious listing of information. The
29 department shall strive to keep such recordkeeping requirements
30 from being an undue hardship or burden on eligible
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1 organizations. Under no circumstances shall the department
2 require the retention of records for a period in excess of two
3 years. Each eligible organization shall report to the department
4 prizes awarded as required by the Internal Revenue Service.
5 Section 10. Licensing of eligible organizations to conduct
6 games of chance.
7 * * *
8 (b.1) Location of small games of chance.--Where there exists
9 a location or premises which is the normal business or operating
10 site of the eligible organization and is owned or leased by that
11 eligible organization to conduct its normal business, that site
12 shall be the licensed premises for small games of chance
13 conducted by the eligible organization. If that location
14 consists of more than one building and the eligible organization
15 wishes to conduct its games in a different building at that
16 location from the one that is listed on its application and
17 license, the eligible organization must notify, in writing, the
18 district attorney and the licensing authority of the change in
19 building site and the dates and times that will be affected.
20 When an eligible organization does not own or lease a specific
21 location to conduct its normal business, that eligible
22 organization may use another eligible organization's premises to
23 conduct its games or may make such other arrangements that are
24 consistent with this act, including, but not limited to, leasing
25 a premise under a written agreement for a rental which is not
26 determined by either the amount of receipts realized from the
27 playing of games of chance nor the number of people attending
28 except that an eligible organization may lease a facility for a
29 banquet where a per head charge is applied in connection with
30 the serving of a meal. More than one organization may use the
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1 same location, provided that each organization has its own
2 license and that the prize limitations of this act shall apply
3 separately to each organization. When such eligible organization
4 changes the site of its games from that which is listed on its
5 application and license, the eligible organization must notify,
6 in writing, the district attorney and licensing authority of the
7 change in their games' site and dates and times that will be
8 affected.
9 * * *
10 Section 4. Section 15 of the act is repealed.
11 Section 5. This act shall take effect in 60 days.
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