PRINTER'S NO. 2214
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No.
1797
Session of
2023
INTRODUCED BY MUSTELLO, KAUFFMAN, BERNSTINE, JAMES AND STRUZZI,
OCTOBER 27, 2023
REFERRED TO COMMITTEE ON GAMING OVERSIGHT, OCTOBER 27, 2023
AN ACT
Amending the act of December 19, 1988 (P.L.1262, No.156),
entitled "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," in games of chance,
further providing for prize limits, providing for raffle
prize limits and further providing for licensing of eligible
organizations and for special permits; and, in club
licensees, further providing for distribution of proceeds.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Section 302(a), (b), (c), (c.1), (d) and (d.1) of
the act of December 19, 1988 (P.L.1262, No.156), known as the
Local Option Small Games of Chance Act, are amended to read:
Section 302. Prize limits.
(a) Individual prize limit.--[Except as provided under
subsections (d) and (d.1), the] The maximum prize which may be
awarded for any single chance shall be [$2,000] $3,000.
(b) Aggregate prize limit.--No more than [$35,000] $50,000
in prizes shall be awarded from games of chance by a licensed
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eligible organization in any seven-day period.
[(c) Raffle prize limit.--Up to $15,000 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).
(d) Exception for raffles.--Notwithstanding subsection (b)
or (c), a licensed eligible organization may conduct a raffle
under section 308 and award a prize or prizes valued in excess
of $3,000 each only under the following conditions:
(1) The licensing authority has issued a special permit
for the raffle under section 308.
(2) A licensed eligible organization shall be eligible
to receive no more than ten special permits in any licensed
term except that a volunteer fire, ambulance, rescue or
conservation organization that is not a club licensee shall
be eligible to receive 12 special permits in any licensed
term.
(3) Only one raffle may be conducted under each special
permit issued under section 308.
(4) Except as provided under subsection (d.1), the total
of all prizes awarded under this subsection shall be no more
than $150,000 per calendar year, which shall not be subject
to the aggregate limit under subsection (b) or (c).
(d.1) Additional award.--A volunteer fire, ambulance, rescue
or conservation organization may, in addition to the total under
subsection (d)(4), award up to $100,000 from raffles which shall
not be subject to the aggregate limit under subsection (b), (c)
or (d).]
* * *
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Section 2. The act is amended by adding a section to read:
Section 302.1. Raffle prize limits.
(a) Raffle prize limit.--The maximum prize which may be
awarded for a raffle shall be $5,000.
(b) Monthly raffle prize limit.--Up to $30,000 in prizes may
be awarded in raffles in a calendar month.
(c) Exception for raffles.--A licensed eligible organization
may conduct a raffle under section 308 and award a prize or
prizes valued in excess of $5,000 each only under the following
conditions:
(1) The licensing authority has issued a special permit
for the raffle under section 308.
(2) There shall be no limit on the number of special
permits a licensed eligible organization may obtain under
section 308.
(3) Only one raffle may be conducted under each special
permit issued under section 308.
(4) Except as provided under subsection (d), the total
of all prizes awarded under this subsection shall be no more
than $300,000 per calendar year, which is not subject to the
limit under subsection (a).
(d) Additional award.--A volunteer fire, ambulance, rescue
or conservation organization may, in addition to the total under
subsection (c)(4), award up to $500,000 which is not subject to
the limit under subsection (a).
Section 3. Section 307(a), (b) and (b.2) of the act are
amended and the section is amended by adding a subsection to
read:
Section 307. Licensing of eligible organizations.
(a) License required.--The following shall apply:
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(1) An eligible organization shall not conduct or
operate games of chance unless the eligible organization has
obtained a valid license as follows:
(i) A regular license which must be renewed
annually.
(ii) A monthly license which permits the eligible
organization to conduct games of chance for a 30-
consecutive-day period.
(2) An auxiliary group of a licensed eligible
organization may conduct games of chance using the license
issued to the eligible organization if the auxiliary group is
listed on the application and license of the eligible
organization. An auxiliary group shall not be eligible to
obtain a license if the auxiliary group is listed on the
application. No additional licensing fee shall be charged for
an auxiliary group[. If the eligible organization is a club
licensee,] if the auxiliary group is listed on the
application. If the auxiliary group is listed on the
application of the licensed organization, the games of chance
conducted by the auxiliary group must be held on the [club's]
licensed organization's licensed premises.
(3) Auxiliary groups not listed on the application with
an eligible organization may apply for their own license as
an eligible organization.
(b) Issuance.--The licensing authority shall issue a license
within [30] 10 days of the submission of an application by an
eligible organization that meets the requirements under this
chapter.
* * *
(b.2) Location.--An eligible organization that is not a club
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licensee that holds a license under subsection (a) [and that is
not a club licensee] may conduct small games of chance in the
county where the license is issued at a premises which is the
operating site of the eligible organization or at a premises or
other location not prohibited by local ordinance, and for which
the treasurer has been notified. The following shall apply:
(1) No more than three licensees, including the licensee
that owns or leases the premises, may conduct small games of
chance simultaneously at a premises or location.
(2) A licensee shall ensure that the conduct of small
games of chance by different organizations are separate and
clearly identified within a premises or location.
[(3) A licensee that is not a club licensee may conduct
games of chance simultaneously with the conduct of games of
chance by a club licensee on not more than three occasions
covering a total of seven days during the year.
(4) The following shall apply:
(i) Notwithstanding paragraph (1), if a club
licensee is unable to conduct games of chance at the
location listed on its application and license due to
natural disaster, fire or other circumstance that renders
the location unusable, the club licensee may submit a
written request to the district attorney to conduct games
of chance in a different location, including the licensed
premises of another eligible organization.
(ii) A request under subparagraph (i) must include
the change in the location and the dates and times the
games of chance will be operated at the alternative
location.
(iii) The district attorney shall approve or deny
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the request and shall establish a limit on the duration
of the authorization to conduct games of chance at the
alternative location. Following the expiration of the
authorization period, the club licensee must return to
the location specified in its application and license or
apply to the licensing authority for a new permanent
location. The district attorney may stipulate additional
requirements as a condition of approval.
(iv) If a club licensee permits another club
licensee to use its licensed premises under this
paragraph to conduct games of chance, the host club
licensee must cease its operation of games of chance
during the time the club licensee utilizing its premises
is conducting its games of chance.]
(b.3) Location for a club licensee.--A club licensee may
conduct small games of chance in the county where the license is
issued at a premises which is the operating site of the club
licensee or at a premises or other location not prohibited by
local ordinance, for which the treasurer has been notified. The
following shall apply:
(1) No more than three eligible organizations, including
the club licensee, that own or lease the premises, may
conduct small games of chance simultaneously at a premises or
location.
(2) A club licensee shall ensure that the conduct of
small games of chance by different organizations are separate
and clearly identified within a premises or location.
(3) Notwithstanding paragraph (1), if a club licensee is
unable to conduct games of chance at the location listed on
the club licensee's application and license due to natural
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disaster, fire or other circumstance that renders the
location unusable, the club licensee may submit a written
request to the district attorney to conduct games of chance
in a different location, including the licensed premises of
another eligible organization.
(4) A request under paragraph (3) must include the
change in the location and the dates and times the games of
chance will be operated at the alternative location.
(5) The district attorney shall approve or deny the
request and shall establish a limit on the duration of the
authorization to conduct games of chance at the alternative
location. Following the expiration of the authorization
period, the club licensee must return to the location
specified in the club licensee's application and license or
apply to the licensing authority for a new permanent
location. The district attorney may stipulate additional
requirements as a condition of approval.
(6) If a club licensee permits another club licensee to
use the licensed premises under this paragraph to conduct
games of chance, the host club licensee must cease the
operation of games of chance during the time the club
licensee utilizing the premises is conducting the games of
chance.
* * *
Section 4. Sections 308(a) and 502(a) of the act are amended
to read:
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 in excess of
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[$3,000] $5,000. The licensing authority may establish and
collect a fee not to exceed $25 for the issuance of special
permits under this section.
* * *
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 [60%] 40% of the proceeds shall be paid
for public interest purposes within one year of the end of
the calendar year in which the proceeds were obtained.
(2) No more than [40%] 60% of the proceeds obtained in a
calendar year may be retained by a club licensee.
* * *
Section 5. This act shall take effect in 60 days.
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