Bill Text: PA HB610 | 2011-2012 | Regular Session | Introduced

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Bill Title: Further providing for definitions and for rules for licensing and operation; providing for progressive jackpots; and further providing for penalties.

Spectrum: Moderate Partisan Bill (Democrat 15-2)

Status: (Introduced - Dead) 2011-02-10 - Referred to GAMING OVERSIGHT [HB610 Detail]

Download: Pennsylvania-2011-HB610-Introduced.html

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PRINTER'S NO. 594
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No. 610 Session of2011
INTRODUCED BY DEASY, CALTAGIRONE, GOODMAN, HALUSKA, HARHAI, HARKINS, HORNAMAN, KORTZ, KOTIK, KULA, MAHONEY, MYERS, J. TAYLOR, THOMAS AND WHITE, FEBRUARY 10, 2011
REFERRED TO COMMITTEE ON GAMING OVERSIGHT, FEBRUARY 10, 2011
AN ACT
Amending the act of July 10, 1981 (P.L.214, No.67), entitled "An
act relating to the lawful conduct of bingo, prescribing
penalties and making a repeal," further providing for
definitions and for rules for licensing and operation;
providing for progressive jackpots; and further providing for
penalties.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. The definitions of "bingo" and "bona fide member"
in section 3 of the act of July 10, 1981 (P.L.214, No.67), known
as the Bingo Law, amended or added December 15, 1982 (P.L.1299,
No.293), are amended and the section is amended by adding
definitions to read:
Section 3. Definitions.
The following words and phrases when used in this act shall
have, unless the context clearly indicates otherwise, the
meanings given to them in this section:
* * *
"Bingo." A game in which each player has a card or [board]
an electronic representation of a card containing five
horizontal rows all but the central one containing five figures.
The central row has four figures with the word "free" marked in
the center thereof. Any preannounced combination of spaces when
completed by a player, including a player using an electronic
bingo device, constitutes bingo when the numbers are announced
and covered. [In the absence of a preannouncement of a
combination of spaces, any combination of five in a row whether
horizontal or vertical when completed by a player constitutes
bingo when its numbers are announced and covered.] A wheel or
other mechanical device [may] must be used by [any person
conducting the game of bingo, and any such person] a member of
the association physically calling each ball used in the game of
bingo. Any member of the association or employee of the lessor
from whom the association is renting the premises may award a
prize to any player or players [first] completing any
combination constituting bingo. The term includes bonanza bingo.
"Bona fide member." Any individual who holds a full
membership in the association as defined by the association's
constitution, charter, articles of incorporation or bylaws [and
has been a member of the association for at least one year]. The
term shall also include those individuals who are members of an
auxiliary or recognized junior affiliate of the parent
association.
"Bonanza bingo." A bingo game in which one or more players
have a card or an electronic representation of a card, whether
sealed or unsealed, containing five horizontal rows all but the
central one containing five figures. The central row has four
figures with the word "free" marked in the center thereof.
Before the commencement of a bonanza bingo session, the
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association shall determine the number of balls used for the
session. A member of the association shall physically call the
balls at the beginning of the bonanza bingo session. Any
preannounced combination of spaces if completed by a player,
including a player using an electronic bingo device, constitutes
bingo after the numbers are covered. A wheel or other mechanical
device must be used by a member of the association physically
calling each ball used for the bonanza bingo session. Any member
of the association or employee of the lessor from whom the
association is renting the location may award a prize to any
player completing any combination constituting bonanza bingo. A
new game of bonanza bingo is commenced by a player receiving a
new card to compare to the balls previously called by a member
of the association at the beginning of the bonanza bingo
session.
* * *
"Electronic bingo device." An electronic or mechanical
device that is used by a bingo player to mark representations of
bingo card faces stored in the device and shall not include any
device which uses wireless communication technology, such as
radio frequency or into which coin, currency or tokens are
inserted directly into the device to activate play. An
electronic bingo device may be used to participate in any lawful
form of bingo.
* * *
"Lessor." A person that permits the conduct of bingo on
premises owned by or leased to that person.
* * *
"Prize." The maximum allowed to be paid by an association
per session, not including any progressive jackpot, is $10,000.
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A prize is not considered to be a prize until it is paid to the
winning player, who must be present during the bingo game the
prize was won. The prize must be awarded to the winner in
person, upon request of the person, by a bona fide member of the
association or an employee of the lessor with whom the
association is renting the premises.
"Progressive jackpot." An amount given along with the
regular prize if a win is obtained in the predetermined number
of balls or less. If the win is not obtained in the
predetermined number of balls or less, the regular game shall
continue.
"Session." An uninterrupted period of time during which an
association conducts bingo on a calendar day at a single
location.
Section 2. Section 5(c), (d) and (e) of the act, amended
December 15, 1982 (P.L.1299, No.293) and February 12, 1988
(P.L.76, No.14), are amended and the section is amended by
adding a subsection to read:
Section 5. Rules for licensing and operation.
* * *
(c) Operation.--Each licensed association shall comply with
the following restrictions and rules governing the operation of
bingo:
(1) No person under the age of 18 shall be permitted to
play bingo unless accompanied by an adult. Children under 18
years of age shall not be permitted to play bingo using an
electronic bingo device.
(2) No association shall conduct bingo more than [twice]
four times in any one week, except an association shall be
permitted to conduct the game of bingo for a period not to
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exceed ten days at the association's exposition, carnival or
fair site in addition to the regularly scheduled games.
(3) Prizes awarded shall not exceed a value of $250 for
any one game of bingo, except [for jackpot] as follows:
(i) Jackpot games, which shall not exceed a value of
$2,000 for one such game. [In addition, no]
(ii) No more than [$4,000 in prizes] $10,000 in
prizes shall be awarded per session in any calendar day.
(iii) Winner-takes-all games, which shall pay out
100% of the gross revenues generated from the bingo game.
(3.1) The value of a progressive jackpot shall not be
subject to prize limitations under paragraph (3).
(4) Only associations licensed to conduct bingo shall be
permitted to advertise their bingo games. Such advertisements
shall contain the date, time, location, whether cash or
merchandise prizes will be awarded and the name of the
association licensed to conduct the bingo game and the name
of the individual in charge of the operation of the game. [An
association shall not advertise the prizes or their dollar
value which will be awarded nor shall they advertise a
guaranteed prize dollar value.]
(5) The association shall own the equipment used in
playing bingo or shall sign a written agreement leasing the
equipment from another licensed association [for a fee which
is not determined by the amount of receipts realized from the
playing of bingo or the number of people attending bingo
games] or a manufacturer or distributor of the equipment.
Joint ownership of bingo equipment shall be permitted only if
both owners of the equipment are licensed associations. This
paragraph shall not apply to associations contracting
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charitable organizations or outside operators to conduct
bingo at expositions, carnivals or fairs. The association may
be charged a per use fee on an electronic bingo device used
during a bingo session. The per use fee may not be determined
by the amount of receipts realized from the playing of bingo
or the number of people attending bingo games.
(6) The association shall own both the premises upon
which bingo is played and the personal property used in the
conduct of the game, or if it does not, the association shall
sign a written agreement leasing such premises or personal
property from the owner thereof for a fee which is not
determined by either the amount of receipts realized from the
playing of bingo or the number of people attending bingo
games. An association shall not lease such premises or
personal property from any person who has been convicted of a
felony or a violation of this act. More than one association
may lease the same premises for the conducting of bingo, and
each association shall have its own license, subject to the
limitations enumerated in section 7(b).
(7) Each association shall keep written records of the
moneys and merchandise collected and distributed for each day
[they conduct] the association conducts bingo. These records
shall indicate the total proceeds collected, the total prize
money distributed, the total value of all merchandise awarded
as a prize and the amount of moneys paid as rentals or wages
and to whom such rentals or wages were paid. All prizes
awarded having a value [greater than $250] of $600 or more
shall be specifically described in the association's records.
The association shall obtain the signature receipt of any
winner of $600 or more. These records shall be maintained by
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the association. Each association shall report to the
Department of Revenue prizes awarded as required by section
335 of the act of March 4, 1971 (P.L.6, No.2), known as the
"Tax Reform Code of 1971."
(8) Each association shall deposit with a financial
institution all proceeds for each day's bingo game in an
account in the association's name. This deposit shall be made
before any of the proceeds may be used for any other purpose,
except for payment of prize money and compensation to members
employed in the operation of the game.
(9) [No association shall permit any person who is not a
bona fide member of the association or who has been convicted
of a felony or a violation of this act to manage, set up,
supervise or participate in the operation of the
association's bingo games.] An association may permit any
person who is a bona fide member of the association or an
employee of a lessor to manage, set up, supervise or
participate in the operation of the association's bingo
games. No association shall permit any person who has been
convicted of a felony or a violation of this act to manage,
set up, supervise or participate in the operation of the
association's bingo games. Nothing contained in this act
shall be construed to prohibit individuals under 18 years of
age from participating in the operation of the game and being
compensated therefor if written permission is obtained from
their parent or guardian.
(10) Associations which obtain a license for the purpose
of conducting bingo at an exposition, carnival or fair for a
period not exceeding ten days shall be permitted to contract
a charitable organization to manage, set up, supervise or
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participate in the operation of the bingo game provided only
merchandise prizes are awarded. Only bona fide members of the
contracted charitable organization shall be permitted to
participate in the operation of the bingo game. If no
charitable organizations are available, the association may
contract an outside operator to conduct the game for
merchandise at the exposition, carnival or fair site. The
provisions of this paragraph shall not be construed to allow
bingo games to be ordinarily carried out on a commercial
basis in this Commonwealth.
(11) No person shall participate in the operation of
bingo games on more than four days in any calendar week,
which games may be operated by no more than two different
licensed associations. This provision shall not apply to
persons engaged in the operation of bingo for merchandise at
expositions, carnivals or fairs not exceeding ten days in
duration.
(12) No supplier of merchandise nor any person who has
been convicted of a felony or a violation of this act shall
have a pecuniary interest in the operation or proceeds of the
bingo game.
(13) No more than three bingo sessions may be conducted
on the same premises on the same calendar day.
(14) No more than one bingo session may be conducted on
the same premises at the same time.
(15) Associations licensed by the Pennsylvania Liquor
Control Board and licensed under this act may conduct bingo
on a regular basis and for the prize limits provided under
this act. The conduct of regular bingo sessions by an
association licensed by the Pennsylvania Liquor Control Board
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shall not be construed as the operation of another business
on the licensee's premises.
(d) Application for license.--Each association shall apply
to the licensing authority for a license on a form to be
prescribed by the Secretary of the Commonwealth. Said form shall
contain an affidavit to be affirmed by the executive officer or
secretary of the association stating that:
(1) No person under the age of 18 will be permitted by
the association to play bingo unless accompanied by an adult.
Children under 18 years of age shall not be permitted to play
bingo using an electronic bingo device.
(2) The facility in which any game of bingo is to be
played does have adequate means of ingress and egress and
adequate sanitary facilities available in the area.
(3) The association is the sole or joint owner with a
licensed association of the equipment used in playing bingo
or [it leases] has signed a written agreement leasing the
equipment from another licensed association [under a written
agreement] or manufacturer or distributor of the equipment
for a fee which is not determined by the amount of receipts
realized from the playing of bingo or the number of people
attending bingo games. This paragraph shall not apply to
associations contracting with charitable organizations or
outside operators to conduct bingo at expositions, carnivals
or fairs.
(4) The association is the owner of both the premises
upon which bingo is played and the personal property used in
the conduct of the game or, if it is not, that the
association is not leasing such premises or personal property
from the owner thereof under an oral agreement, nor is it
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leasing such premises or personal property from the owner
thereof under a written agreement at a rental which is
determined by either the amount of receipts realized from the
playing of bingo or the number of people attending bingo
games, nor is it leasing such premises or personal property
from a person who has been convicted of a felony or a
violation of this act.
(5) The association will not conduct the playing of
bingo more than [twice] four times per week in any one week,
except those associations conducting bingo at expositions,
carnivals or fairs.
(6) The association in any [calendar day] session will
not award a total of more than [$4,000 in prizes] $10,000 in
prizes, excluding progressive jackpots.
(6.1) The association will not conduct a bingo session
at the same time as any other association on the same
premises.
(6.2) The association will not conduct a bingo session
on the same premises at which more than two other
associations are conducting bingo sessions on the same
calendar day.
(7) The association is a nonprofit association as
defined in this act.
(8) The association has complied with the annual
financial report filing requirements in subsection (d.1)(1).
(9) The association has complied with the educational
requirements contained in subsection (d.1)(2).
(d.1) Additional application components.--As part of the
application under subsection (d), each association shall comply
with all of the following:
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(1) An association shall file an annual report with the
licensing authority. The following shall apply:
(i) The first annual report required under this
paragraph shall contain information for the 12-month
period ending at least 60 days, but not more than 90
days, prior to the submission of the application.
Subsequent annual reports shall contain information for
the most recent 12-month period ending in the same month
as the initial report.
(ii) The annual report shall concern the operation
of bingo games by the association and shall detail gross
receipts from the conduct of bingo games, the expenses
related to the conduct of bingo games, the prizes paid
out for bingo games and the details as to how the
proceeds from bingo games were used or disbursed by the
association.
(iii) The annual report shall be prepared on a one-
page form to be designed by the department. Additional
schedules shall be included, if necessary, to provide
specific details on the use or disbursement of the net
proceeds from bingo games by the association.
(2) An association shall provide evidence to the
licensing authority that bingo games education has been
completed under this paragraph. The following shall apply:
(i) Two hours of education shall have been completed
within the 12-month period immediately preceding the date
of the application.
(ii) The education shall have been completed by the
executive officer, secretary or a responsible person
listed on the association's application for a license.
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The person receiving the training shall be associated
with the conduct of bingo games by the association.
(iii) The contents of the education program shall be
determined by the department and shall be designed to
assist associations in their compliance with statutory
and regulatory requirements associated with the conduct
of bingo games.
(iv) The education program may be conducted by any
Statewide nonprofit association approved by the
department.
(v) This paragraph shall not apply if the
association submits an affidavit affirmed by the
executive officer or secretary of the association that
the association will not conduct bingo games on 30 or
more days during the licensing period.
(e) Limitation on compensation.--No person may be employed
in the operation or the actual running of a bingo game for
compensation greater than [$50] $100 per calendar day, except
employees of outside operators under section 5(c)(10), and any
person compensated shall be paid individually by check or by
cash, in which case the payee shall sign a written receipt
therefor. [In addition, no person shall receive compensation
from more than one source for services rendered in the operation
of a bingo game.]
* * *
Section 3. The act is amended by adding a section to read:
Section 5.1. Progressive jackpots.
(a) Permitted.--An association or associations playing at
the same premises may deposit a predetermined amount of money
before each licensed bingo session into a special account in
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order to offer a progressive jackpot prize.
(b) Participating association.--An association may conduct a
progressive jackpot game which shall be in conjunction with the
association's regular bingo or bonanza bingo games.
(c) Contents.--A progressive jackpot shall consist of all
contributions made by participating associations.
(d) Method of winning.--A progressive jackpot is won along
with a regular jackpot prize when a player achieves a win in a
predetermined number of balls or less. If the win is not
obtained in the predetermined number of balls or less, the
association's regular game shall continue.
(e) Checking account.--A separate checking account shall be
opened for the progressive jackpot. The following shall apply:
(1) The account shall be in the name of "Charitable
Gaming Progressive Jackpot Account," which shall be imprinted
on all checks. Checks from this account shall require two
signatures.
(2) If the associations have contracted with a lessor,
the lessor shall designate a representative who shall make
deposits of all funds contributed to the progressive jackpot
by 10 a.m. on the next banking day and who shall be
responsible for maintaining the checking account in
accordance with generally accepted accounting principles.
(3) Designated representatives of the lessor and each
participating association shall be authorized signatories on
the account and shall be in attendance at the location at the
conclusion of each respective association's progressive
jackpot game for the purpose of issuing a check bearing
signatures of the lessor representative and the association
representative from the special account to the winner. If no
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lessor is involved, the association shall have two of its
representatives at the location to sign and issue a check.
(4) All banking fees and costs shall be borne by the
lessor or the association, if no lessor is involved.
(f) Contribution.--Each participating association shall
submit a check to the designated lessor representative for the
predetermined amount prior to the commencement of the
association's scheduled bingo session made payable to the
charitable gaming progressive jackpot account. The contribution
shall be nonrefundable except in the event of premises closure.
Each predetermined contribution shall constitute part of the
total amount of prizes awarded during that bingo session. If no
lessor is involved, the association shall make a check payable
to its charitable gaming progressive jackpot account. The
contribution shall be nonrefundable except in the event of
premises closure. Each predetermined contribution shall
constitute part of the total amount of prizes awarded during
that bingo session. The following shall apply:
(1) The dollar amount of the progressive jackpot shall
be continuously and conspicuously displayed during all bingo
sessions conducted by participating associations at the
premises within view of all patrons purchasing progressive
jackpot cards.
(2) All checks written to a charitable gaming
progressive jackpot account shall be reported as part of the
bingo reports when requested by the local district attorney's
office.
(3) The association involved in the progressive jackpot
may establish a maximum cap not to exceed the daily limit
under subsection (g). Participating associations may, prior
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to the progressive jackpot being won, raise but may not lower
the maximum jackpot or cap. The following shall apply:
(i) In the event that the maximum progressive
jackpot or cap established is reached, the associations
may continue to make contributions to the charitable
gaming progressive jackpot account in order to accumulate
a second or subsequent jackpot. Once the maximum jackpot
or cap is reached, the participating associations shall
not offer any subsequent progressive jackpot prize until
the time that the first progressive jackpot prize is won.
(ii) The dollar amount of the maximum jackpot or cap
as established by the associations shall be continuously
and conspicuously displayed with the current dollar
amount of the progressive jackpot.
(g) Daily limit and increment.--No more than $50,000 in
prizes shall be awarded from a progressive jackpot in any
calendar day. No association may participate in more than one
progressive jackpot in a calendar day. The value of a
progressive jackpot may not be increased by more than $10,000 a
day.
Section 4. Section 7(b) of the act, amended December 15,
1982 (P.L.1299, No.293), is amended to read:
Section 7. Penalty.
* * *
(b) Misdemeanor.--Any person who conducts or assists in the
conducting of bingo in violation of the provisions of this act,
is guilty of a misdemeanor of the first degree. Any person who
permits the conduct of bingo on the same premises, owned by him
or leased to him, [on more than five days in any one week or] by
more than [one association in any calendar day] three
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associations per calendar day or by more than one association at
the same time, except for bingo being played at an exposition,
carnival or fair, is guilty of a misdemeanor of the first
degree.
Section 5. This act shall apply as follows:
(1) The addition of section 5(d)(8) and (d.1)(1) of the
act shall apply to applications filed more than 60 days after
the effective date of this section.
(2) The amendment or addition of section 5(d)(9) and
(d.1)(2) of the act shall apply to applications filed more
than one year after the effective date of this section.
Section 6. This act shall take effect in 60 days.
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