Bill Summary – FastDemocracy

PRINTER'S NO.     1746
                     THE GENERAL ASSEMBLY OF PENNSYLVANIA
                        SENATE BILL
                        No. 1263
                                               Session of
                                                 2024
     INTRODUCED BY ROBINSON, LANGERHOLC, REGAN, FONTANA AND
        BARTOLOTTA, JUNE 20, 2024
     REFERRED TO COMMUNITY, ECONOMIC AND RECREATIONAL DEVELOPMENT,
        JUNE 20, 2024
                                    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 preliminary
    provisions, further providing for definitions; in games of
    chance, further providing for prize limits, for sales
    limited, for distributor licenses, for registration of
    manufacturers and for regulations of department; in club
    licensees, further providing for club licensee and for
    distribution of proceeds; in enforcement, further providing
    for revocation of licenses, for local option and for
    advertising; in tavern gaming, further providing for
    licenses, for application, for approval, for prize limits,
    for distribution of net revenue, for tavern games tax, for
    invoice, for reports and for enforcement.
    The General Assembly of the Commonwealth of Pennsylvania
 hereby enacts as follows:
    Section 1.    The definitions of "games of chance," "passive
 selection device" and "tavern games" in section 103 of the act
 of December 19, 1988 (P.L.1262, No.156), known as the Local
 Option Small Games of Chance Act, are amended and the section is
 amended by adding definitions to read:
 Section 103.    Definitions.
    The following words and phrases when used in this act shall,
 except as provided under section 902, have the meanings given to
 them in this section unless the context clearly indicates
 otherwise:
    * * *
    "Electronic pull-tab."      An electronic facsimile of a paper
 pull-tab that is played on an electronic pull-tab device and
 purchased from a licensed distributor.
    "Electronic pull-tab device."         A hand-held portable
 electronic passive device, including, but not limited to, a cell
 phone or tablet, owned by the individual playing an electronic
 pull-tab game or a tablet owned by the manufacturer and supplied
 to the licensee at no additional fee and to which the following
 apply:
          (1)   The device must access an electronic pull-tab
    software application from the licensee that can only be
    played on-site at the licensee's location through a router or
    similar computer hardware that links the device so that
    electronic pull-tabs can be viewed and played.
          (2)   The device requires a coded entry from the licensee
    to activate credits, but does not allow the use of coins,
    currency or tokens to activate credits.
          (3)   The device requires a player to activate or open
    each electronic pull-tab ticket.
          (4)   The device does not determine the outcome of an
    electronic pull-tab game, but is merely a device used to view
    electronic pull-tabs that are provided randomly to the player
    the same as a paper pull-tab, except in an electronic format.
          (5)   The device maintains credit play accumulated that
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    may be applied to games in play or redeemed at the licensee
    location upon termination of play.
        (6)    The device may incorporate an amusement feature as
    part of the game, but may not require additional
    consideration or award a prize or other benefit for that
    feature.
 This definition shall not be construed to authorize any other
 form of gambling currently prohibited under any provision of 18
 Pa.C.S. (relating to crimes and offenses) or authorized under 4
 Pa.C.S. (relating to amusements).
    * * *
    "Games of chance."   Punchboards, daily drawings, weekly
 drawings, 50/50 drawings, raffles, tavern games, pools, race
 night [games and pull-tabs] games, pull-tabs and electronic
 pull-tabs, as defined in this act, provided that no such game
 shall be played by or with the assistance of any mechanical or
 electrical devices or media other than [a] an electronic pull-
 tab device, dispensing machine or passive selection device,
 including an electronic pull-tab, and further provided that the
 particular chance taken by any person in any such game shall not
 be made contingent upon any other occurrence or the winning of
 any other contest, but shall be determined solely at the
 discretion of the purchaser. This definition shall not be
 construed to authorize any other form of gambling currently
 prohibited under any provision of 18 Pa.C.S. (relating to crimes
 and offenses) or authorized under 4 Pa.C.S. (relating to
 amusements). Nothing in this act shall be construed to authorize
 games commonly known as "slot machines" or "video poker" or
 other games regulated by the Pennsylvania Gaming Control Board.
 (Def. amended Nov. 27, 2013, P.L.1045, No.90 and Nov. 27, 2013,
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 P.L.1062, No.92)
    * * *
    "Passive selection device."     A device which is used to hold
 or denote the universe of possible winning numbers or entrants
 in a daily drawing or raffle or for electronic pull-tabs. Such a
 device may not have the capability of being utilized to conduct
 or aid in the conducting of unauthorized or illegal forms of
 gambling.
    * * *
    "Tavern games."    Pull-tabs, electronic pull-tabs, tavern
 daily drawings and tavern raffles.
    * * *
    Section 2.    Sections 302, 303, 304(a) and (g), 305 and 306(a)
 of the act are amended to read:
 Section 302.    Prize limits.
    (a)    Individual prize [limit].--Except as provided under
 subsections (d) and (d.1), [the] there is no maximum prize which
 may be awarded for any single chance [shall be $2,000].
    (b)    Aggregate prize [limit].--[No more than $35,000 in
 prizes shall be] There is no limit on prizes awarded from games
 of chance by a licensed 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
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 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).
           (5)   The prize limit of any individual raffle ticket
    shall be 500 times the amount of the purchase price of the
    ticket, with the maximum prize not to exceed $5,000.
    (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).
    (f)    Daily drawing carryover.--[The prize limitation
 contained in subsections (a) and (b) may be exceeded by a daily
 drawing under the following circumstances: a] A daily drawing
 may award a prize in excess of $2,000 if such prize is the
 result of a carryover of a drawing which resulted from the
 winning number in such drawing not being among the eligible
 entrants in such drawings. Nothing contained herein shall
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 authorize the prize limitation as contained in [subsections (a)
 and (b)] subsection (c) 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)    Additional exception.--When a daily drawing or weekly
 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 limitation contained in subsection [(b)] (c) shall not
 apply.
    (h)    Weekly drawing carryover exception.--Weekly drawings
 shall be governed by the prize limitation contained in
 subsection [(b)] (c). The prize limitation contained in
 subsection [(b)] (c) may be exceeded by a weekly drawing under
 the following circumstances: a weekly drawing may award a prize
 where the cash value is in excess of $35,000 if such prize is
 the result of a carryover of a drawing or drawings which
 resulted from the winning number or numbers in such drawing or
 drawings not being among the eligible entrants in such drawings.
 Nothing contained in this chapter shall authorize the prize
 limitation under subsection [(b)] (c) to be exceeded as a result
 of a failure to conduct a drawing for a week during which
 chances were sold for a weekly drawing or for a weekly drawing
 for which chances were sold in excess of $1.
    (i)    Concurrent operation.--Nothing under this act shall
 prohibit the concurrent operation of daily or weekly drawings.
 Section 303.   Sales limited.
    [(a)    General rule.--]No person shall sell, offer for sale or
 furnish games of chance for use within this Commonwealth except
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 to an eligible organization or licensed distributor under this
 chapter.
    [(b)    Limitation.--No game of chance, other than a raffle
 under section 302(d), sold, offered for sale or furnished to a
 licensed eligible organization for use within this Commonwealth
 shall contain, permit, depict or designate a prize having a
 prize limit in excess of $2,000.]
 Section 304.      Distributor licenses.
    (a)     License required.--No person shall sell, offer for sale
 or furnish games of chance to eligible organizations licensed
 under this chapter or licensed under Chapter 9 unless such
 person shall have obtained a distributor license as provided in
 this section. A registered manufacturer may obtain a distributor
 license.
    * * *
    (g)     Ineligibility.--The department shall not issue or renew
 a distributor license for the sale of games of chance to a
 person, including any corporation, [firm or partnership] firm,
 partnership or entity which has as an officer, director,
 shareholder, person related by blood or through marriage or
 other person in a supervisory or management position, or
 employee [eligible to make sales on behalf of the distributor],
 who:
           (1)   has been convicted of a felony in a state or Federal
    court within the past [five] ten years; or
           (2)   has been convicted within ten years of the date of
    application in a state or Federal court of a violation of any
    of the following:
                 (i)    This act.
                 (ii)    The act of July 10, 1981 (P.L.214, No.67),
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          known as the Bingo Law.
                (iii)    A gambling-related offense under 4 Pa.C.S.
          (relating to amusements).
                (iv)    A gambling-related offense under 18 Pa.C.S.
          (relating to crimes and offenses).
                (v)    A Federal or State law comparable to the
          statutes listed under subparagraphs (i), (ii), (iii) and
          (iv).
    * * *
 Section 305.     Registration of manufacturers.
    (a)   Registration required.--No manufacturer of games of
 chance shall sell any games of chance to any person, eligible
 organization or tavern unless the manufacturer has registered
 with the department and has been issued a certificate of
 registration. A registered manufacturer may apply to be a
 licensed distributor.
    (b)   Annual certificate; fee.--A certificate under this
 section shall be valid for one year. The annual fee for
 registration shall be $2,000.
    (c)   Prohibited sales.--A manufacturer shall not sell games
 of chance to any person not licensed as a distributor unless the
 manufacturer is also a licensed distributor.
    (c.1)   Requirements for software.--Software supplied by a
 manufacturer of electronic pull-tabs must meet the following
 requirements:
          (1)   Software used in a passive selection device must be
    owned by the manufacturer, including the designs of the
    central system, database, program architecture and source
    code used in the passive selection device. A manufacturer
    shall not license from or pay any other person, corporation,
20240SB1263PN1746                       - 8 -
    entity, firm or partnership an ongoing or continuing fee of
    any kind for the software used in a passive selection device.
          (2)   Software to be used must first be tested and
    certified, at the cost of the manufacturer, by an authorized
    third-party testing laboratory approved by the department.
    (c.2)   Ineligibility.--The department shall not issue or
 renew a manufacturer certificate of registration for the
 manufacture of games of chance, including software for
 electronic pull-tabs, to a person, including any corporation,
 firm, partnership or any entity which has as an officer,
 director, shareholder, person related by blood or through
 marriage or other person in a supervisory or management
 position, or employee of the manufacturer, who:
          (1)   has been convicted of a felony in any state or
    Federal court within the past ten years; or
          (2)   has been convicted within ten years of the date of
    application in a state or Federal court of a violation of any
    of the following:
                (i)    This act.
                (ii)    The act of July 10, 1981 (P.L.214, No.67),
          known as the Bingo Law.
                (iii)    A gambling-related offense under 4 Pa.C.S.
          (relating to amusements).
                (iv)    A gambling-related offense under 18 Pa.C.S.
          (relating to crimes and offenses).
                (v)     A Federal or State law comparable to the
          statutes listed under subparagraphs (i), (ii), (iii) and
          (iv).
    (d)   Exception.--This section shall not apply to the
 manufacture or distribution of raffle tickets, 50/50 drawings,
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 daily drawings, weekly drawings or pools.
 Section 306.    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 of chance [or prize] and such other
    standards and restrictions as the department deems necessary
    for the purposes of this chapter. 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.
    Procedures shall include a requirement that manufacturer and
    distributor applicants provide criminal history record
    information obtained from the Pennsylvania State Police under
    18 Pa.C.S. § 9121(b) (relating to general regulations) for
    each [officer and manager] officer, manager and shareholder
    of the manufacturer's or distributor's organization,
    including any relative related by blood or through marriage
    thereof, and for any other individual specified by the
    departm