PRIA, Government Policy, Made Personal

Section 3. Sections 4, 5, 6, 7(a), 9, 10, 11, 12, 14(d), 15 and 17(a) and (b) of the act are amended to read:

Section 4. Games of chance permitted.

Every [club] 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 [legitimate club] public interest purposes. All proceeds of games of chance shall be used exclusively for [legitimate club] public interest purposes or for the purchase of games of chance as permitted by this act.

Section 5. Prize limits.

(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 any [club] eligible organization in any seven-day period.

(d) Exception.--[A club] An eligible organization may conduct a raffle and award a prize or prizes valued in excess of $500 each only under the following conditions:

(1) The licensing authority has issued a special permit for the raffle under section 11.

(2) [No club] Eligible organizations shall be eligible to receive no more than two special permits in any [calendar year] licensed year except that volunteer fire, ambulance and rescue organizations shall be eligible to receive no more than three special permits in any licensed year.

(3) Only one raffle may be conducted under each special permit.

(4) The total cash value of all prizes shall be no more than $25,000 for each raffle.

(e) Limit on daily drawings.--Daily drawings shall be governed by the prize limitations contained in subsections (a) and (b).

(f) Exception.--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 where the cash value is in excess of $500 if such prize is the result of a carryover of a drawing or drawings which resulted from the winning number in such drawing or drawings not being among the eligible entrants in such drawings. Nothing contained herein shall authorize the prize limitations 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) Daily drawing exception.--When a daily 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 limitations contained in subsection (b) shall not apply.

Section 6. Sales limited.

No person shall sell, offer for sale or furnish games of chance for use within this Commonwealth except to [a club] an eligible organization or distributor licensed under this act. No game of chance, other than a raffle, sold, offered for sale or furnished for use within this Commonwealth shall contain, permit, depict or designate a prize having a cash value in excess of $500.

Section 7. Distributor licenses.

(a) License required.--No person shall sell, offer for sale or furnish games of chance to [clubs] eligible organizations licensed under this act unless such person shall have obtained a distributor license as provided in this section.

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Section 9. 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 or prize and such other standards and restrictions as the department deems necessary for the purposes of this act. 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.

(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 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 eligible organizations. Under no circumstances shall the department require the retention of records for a period in excess of two years.

Section 10. Licensing of [clubs] eligible organizations to conduct games of chance.

(a) License required.--No [club] eligible organization shall conduct or operate any games of chance unless such [club] eligible organization has obtained and maintains a valid license issued pursuant to this section. Auxiliary groups within eligible organizations shall be eligible to conduct small games of chance using the license issued to the eligible organization provided that the auxiliary group or groups are listed on the application and license of the eligible organization. No additional licensing fee shall be charged for an auxiliary group's eligibility under this act. Auxiliary groups shall not include branches, lodges or chapters of a Statewide organization.

(b) Issuance and fees.--The licensing authority shall license, upon application, [any club] within 30 days any eligible organization meeting the requirements for licensure contained in this act to conduct and operate games of chance at [one location in the county.] 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 [club] 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.

(b.1) Location of small games of chance.--Where there exists a location or premises which is the normal business or operating site of the eligible organization and is owned or leased by that eligible organization to conduct its normal business, that site shall be the licensed premises for small games of chance conducted by the eligible organization. If that location consists of more than one building 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. When an eligible organization does not own or lease a specific location to conduct its normal business, that eligible organization may use another eligible organization's premises to conduct its games or may make such other arrangements that are consistent with this act, including, but not limited to, 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 games of chance nor 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. When such 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.

(b.2) Off-premises games of chance.--Notwithstanding any other provisions of this section, an eligible organization may conduct small games of chance at a location off its premises when such games are part of an annual carnival, fair, picnic or banquet held or participated in by that eligible organization on a historical basis. The eligible organization must notify, in writing, the district attorney and licensing authority of the location, date and times of such events where it will be conducting small games of chance.

(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 small games of chance on not more than three occasions covering a total of seven days during a licensed year. A limited occasion license entitles eligible organizations holding such a license 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 limited occasion licenses 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 conducting of small games of chance. It shall also be unlawful for any eligible organization to lease under any terms a facility or building which is used exclusively for the conducting of small games of chance.

(c) Display.--Licenses issued pursuant to this section shall be publicly displayed [on the premises.] at the site of the small games of chance.

(d) Operation.--Each licensed [club] eligible organization shall comply with the following restrictions and rules governing the operation of games of chance:

(1) No person under 18 years of age[, or in the case of a club holding a liquor license, 21 years of age,] shall be permitted to operate or play games of chance.

(2) No [club] eligible organization shall permit any person who has been convicted of a felony [or] 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) No [club] eligible organization shall pay any compensation to any person for conducting any games of chance. Games of chance may only be conducted by [club] managers, officers, directors, bar personnel and [persons who have been] bona fide members of the [club for at least one year] eligible organization.

(4) Games shall be conducted only on the licensed premises[, except that raffle tickets may be sold at other locations for drawings to be held no more frequently than once a calendar month.] or as otherwise provided by this act.

(5) The [club shall own the premises upon which games of chance are played or shall] eligible organization shall not lease such premises under either an oral or a written agreement for a rental which is [not] determined by either the amount of receipts realized from the playing of games of chance [nor] 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. [A club] An eligible organization shall not lease such premises from any person who has been convicted of a violation of this act within the past ten years.

(6) Games, other than raffles and daily drawings, shall be purchased only from manufacturers and distributors approved by the department.

(7) [No location or licensed premises may be used by more than one licensed club for the conducting of games of chance.] No licensed eligible organization shall permit 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. When 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) Raffle tickets may be sold 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.

(e) Application for license.--Each [club] eligible organization shall apply to the licensing authority for a license on a form to be prescribed by the Secretary of Revenue. The form shall contain an affidavit to be affirmed by the executive officer or secretary of the [club] eligible organization stating that:

(1) No person under 18 years of age[, or in the case of a club holding a liquor license, 21 years of age,] will be permitted by the [club] 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 [club is the owner of the premises upon which the games of chance are played or, if it is not, that the club] 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.

(f) List of licensees.--The licensing authority, on a semiannual basis, shall send a copy of all licensees to the Department of Revenue.

(g) List of municipalities.--The licensing authority shall include with any license or renewal 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.

Section 11. Special permits.

(a) Issuance and fee.--The licensing authority shall issue a special permit for each raffle in which the licensee proposes to award individual prizes having a cash value in excess of $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 or prizes to be awarded.

[(c) Location.--No location or licensed premises may be used by more than one licensed club for a special permit raffle in a calendar year.]

Section 12. Revocation of licenses.

(a) Grounds.--The licensing authority shall revoke or refuse to renew the license of any [club] 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 [legitimate club] public interest purposes or for the purchase of games of chance as permitted by this act.

(2) Any person under 18 years of age[, or in the case of a club holding a liquor license, a person under 21 years of age,] is operating or playing games of chance as defined in this act.

(3) The [club] eligible organization has permitted any person who has been convicted of a felony [or] 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 [a club] 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 [club] eligible organization has violated any condition of a special permit issued pursuant to section 11.

(9) The [club] eligible organization conducts the games of chance [upon premises which it does not own or lease in accordance with this act and is either:] 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) [A club] An eligible organization has been convicted of a violation of this act as evidenced by a certified record of the conviction.

[(12) The club has permitted another club to use its licensed premises for the conducting of games of chance.

(13) A club has conducted more than one raffle in any calendar month.]

(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.

(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 whether a license should be revoked or renewal thereof denied. Licensees shall also 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 14. Local option.

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(d) Applicability.--This act applies only to those [clubs] eligible organizations located in municipalities which have adopted the provisions of this act by an affirmative vote in a municipal referendum in accordance with the provisions of this section.

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Section 15. Advertising.

It shall be unlawful for any [club] eligible organization or person to advertise the prizes or their dollar value to be awarded in games of chance, provided that prizes may be identified on raffle tickets. Notwithstanding the prohibition of advertising contained within this section, an eligible organization may advertise prizes and values thereof in periodic publications which are limited in their circulation to members of the eligible organization.

Section 17. Penalties.

(a) [Summary offense.--Any club] Eligible organizations.--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 and shall for a first offense, forfeit [any] the license to conduct games of chance issued to the [club, and it shall be ineligible for a license renewal for 30 months thereafter.] eligible organization for the remainder of the licensing period or six months, whichever is longer, for a second offense, forfeit the license issued to the eligible organization for the remainder of the current licensing period and be ineligible to be licensed for the following licensing period, for a third or subsequent offense, forfeit the license issued to the eligible organization and be ineligible for a license renewal for 30 months thereafter.

(b) [Misdemeanor] 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 [misdemeanor of the first degree.] 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.

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