[34 Pa.B. 5563]
[Continued from previous Web Page]
Subchapter E. PROHIBITED ACTIVITIES/PENALTIES
PROHIBITED ACTIVITIES § 901.501. Advertising.
[A club] An eligible organization or other person may not advertise the prizes or their dollar value to be awarded in games of chance. [Prizes may be identified on a raffle ticket.] Raffle tickets may identify the raffle prizes. An eligible organization may advertise prizes and values thereof in periodic publications that are limited in their circulation to members of the eligible organization.
§ 901.502. Persons.
(a) A person having a pecuniary interest in a distributor or manufacturer or operator of games of chance may not have been:
* * * * * (b) A person 17 years of age or younger[, or 20 years of age or younger in the case of a club holding a liquor license,] may not be permitted to operate or play [small] games of chance.
(c) A [club] licensed eligible organization may not permit a person who has been convicted of a felony [or a] in a Federal or State court within the past 5 years or has been convicted in a Federal or State court of a violation of the Bingo Law or the act within the past 10 years to manage, set up, supervise or participate in the operation of games of chance.
§ 901.503. Compensation.
A [club] licensed eligible organization may not pay compensation to a person for conducting games of chance.
§ 901.504. Persons who may conduct games.
Persons may conduct [small] games of chance only if they are [club] licensed eligible organization managers, officers, directors, bar personnel or bona fide members [of the club for at least 1 year].
§ 901.505. Promotional use of games of chance.
[Small games] Games of chance may not be used as a part of promotional or advertising methods.
§ 901.506. Credit play.
* * * * * (e) A [club] licensed eligible organization may not permit the purchase of tickets by means of a deferred payment plan.
(f) [Clubs] Licensed eligible organizations may establish their own policies concerning acceptance of checks. A [club] licensed eligible organization is not required to accept a check.
(g) A [club] licensed eligible organization, manufacturer or distributor may not grant a non [diminimis] de minimis loan or gift to a player, a [club] licensed eligible organization, distributor or manufacturer.
* * * * * (i) On the specific date on which the check was written, a [club] licensed eligible organization may allow a player to buy back a check with cash or return a player's check to the player as part of a prize payout. [Clubs] Licensed eligible organizations may not unnecessarily delay the bank deposit of a check to accommodate either of these activities.
(j) A [club] licensed eligible organization may not lend or provide the use of gambling funds to a person as a loan.
§ 901.507. Prizes in excess of $500.
[An] A licensed eligible organization may not award an individual prize [which] that exceeds $500 [may not be awarded] except under a special raffle permit [raffle], a carryover daily drawing as provided in § 901.702(e)(1) (relating to prize limits) or a weekly drawing.
§ 901.508. Prizes in excess of $5,000.
A licensed eligible organization may not award a prize [which] that causes the total prizes awarded for [the 7-day period] an operating week to exceed $5,000 [may not be awarded] except under a special raffle permit, a carryover daily drawing as provided in § 901.702(e)(1) or (2) (relating to prize limits) or a weekly drawing as provided in § 901.702(f)(2). [Prizes awarded in raffles are not included in this amount.]
§ 901.509. Monthly raffle limit.
A licensed eligible organization may not award a raffle prize [which] that causes the total prizes awarded in raffles to exceed $5,000 for the month [may not be awarded] except under a special raffle permit [raffle].
§ 901.510. [One club per location] Use of licensed premises by more than one organization.
[A location or licensed premises may not be used by more than one licensed club for the conduct of games of chance.] A licensed eligible organization may not permit its premises to be used for games of chance by another licensed eligible organization at the same time that it is conducting games of chance on the premises. When a licensed eligible organization permits another licensed eligible organization to use its premises for purposes of games of chance, it shall cease the operation of its own games of chance during the period that the other licensed eligible organization is conducting its games on the premises.
§ 901.511. Other activities.
Other activities [which] that are grounds for revocation, suspension, denial or termination of a [registration] certificate or license are also prohibited.
§ 901.512. Oral and written leases.
(a) An eligible organization may only lease a location or premises for the operation of games of chance under a written agreement.
(b) An eligible organization may not lease a location or premises for the operation of games of chance under a written agreement that provides for a rental price 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 location or premises for a banquet where a per head charge is applied in connection with the serving of a meal.
§ 901.513. Gambling facilities prohibited.
(a) A person, corporation, association, partnership or other business entity may not offer for rent or offer for use a building or facility to be used exclusively for conducting of games of chance.
(b) A licensed eligible organization may not lease under any terms a facility or building that is used exclusively for conducting of games of chance.
PENALTIES § 901.531. [Summary offense] Eligible organizations.
[A club] An eligible organization violating the act is guilty of a summary offense, and upon conviction will be sentenced to pay a fine not exceeding $1,000[,] and shall, for a first offense forfeit [a] its license [and shall be ineligible for any license renewal for 30 months from the date of conviction] to conduct games of chance for the remainder of the license term or 6 months, whichever is longer; for a second offense, forfeit its license for the remainder of the license term and be ineligible to be licensed for the following license term; for a third or subsequent offense, forfeit its license; and be ineligible for a license renewal for 30 months thereafter.
§ 901.532. [Misdemeanor] Individuals.
A person who conducts, or who assists in the conduct of, games of chance in violation of the act is guilty of a summary offense for the first violation, a misdemeanor of the third degree of a second violation and a misdemeanor of the first degree for a third or subsequent violation.
§ 901.533. Distributors and manufacturers.
A person who distributes games of chance without a license or in violation of the act or this part and a manufacturer of games of chance who delivers games of chance for sale or distribution in this Commonwealth who fails to obtain a [registration] certificate therefor, is guilty of a misdemeanor of the first degree. A license or [registration] certificate is not required for the manufacture or distribution of raffle, daily drawing or weekly drawing tickets.
§ 901.535. Contingent fees.
A person who distributes, manufactures or operates a [small] game of chance and who requires a payment equal to a percentage of the total winnings of a game for equipment furnished or to play a game commits a misdemeanor of the first degree.
Subchapter F. MANUFACTURING STANDARDS
PULL-TAB MANUFACTURING STANDARDS § 901.601. Uniform minimum quality standards.
(a) [Pull-tabs] Pull-tab games manufactured for sale or other distribution in this Commonwealth shall conform to the act, this part and N. A. G. R. A.'s [''Uniform Minimum Quality Standards For The Manufacture of Charity Game Tickets.''] manufacturing standards for pull-tab games to the extent consistent with this part. Copies of [these] N. A. G. R. A. standards are available from the Department.
* * * * * § 901.602. [Substitute flares] Flares.
[A flare may not be used on a pull-tab deal except those provided by the manufacturer unless the flare is made by the club and contains the information required under § 901.608 (relating to standards for flares)]. A flare provided by the manufacturer must accompany every deal. However, a licensed eligible organization may alter a flare as provided in § 901.731(b)(2) (relating to punchboard and pull-tab operation).
§ 901.608. Standards for flares.
[Except as provided by § 901.602 (relating to substitute flares), the flare identifying prizes available from the operation of a pull-tab deal shall be made only by the manufacturer. Winning numbers or symbols may not be altered by a club or distributor, and shall:]
(a) A pull-tab game flare must be made only by the manufacturer. Except as provided by § 901.731 (b)(2) (relating to punchboard and pull-tab operation), a flare may not be altered after it leaves the manufacturer's possession and control.
(b) Except as otherwise provided in this part, a flare for a pull-tab game must comply with N. A. G. R. A. manufacturing standards for pull-tab game flares.
(c) A pull-tab game flare must:
(1) Be placed only upon the face, or on the top, of a dispenser used to dispense the pull-tabs or must be printed on or made part of each pull-tab in a deal.
* * * * * (d) The flare for any pull-tab game containing hold tickets must provide for a section on the flare, either on the front or back, that contains the hold ticket numbers or symbols and a corresponding space beside each number or symbol upon which the holder of each hold ticket shall sign his name.
PUNCHBOARD MANUFACTURING STANDARDS § 901.621. [Substitute flares] Flares.
[Flares may not be used on a punchboard except those provided by the manufacturer unless the flare is made by the club and contains the information required under § 901.627 (relating to standards for flares).] A flare provided by the manufacturer must accompany every punchboard. However, a licensed eligible organization may alter a flare as provided in § 901.731(b)(2) (relating to punchboard and pull-tab operation).
§ 901.622. Standards for construction.
Punchboards sold for use in this Commonwealth [shall comply] must be in compliance with the following standards:
(1) General.
(i) A punchboard must have a face sheet that covers the punchboard receptacles.
(ii) The flare for the punchboard may be manufactured to also serve as the face sheet for the punchboard.
(iii) A punchboard, its punches and its flare must be assigned an identical serial number.
(iv) Each punchboard receptacle must contain an identical number of punches.
(2) Patterns. The punchboard [shall] must be manufactured with special care to eliminate patterns between punchboards, or portions of punchboards, from which the location or approximate location of winning punches may be determined. A manufacturer shall employ at least the following steps to ensure that no pattern exists:
(i) The form or permanent number sheets from which the individual punches shall be cut [shall] must be mixed prior to cutting.
(ii) After the [strips--straws--] punches have been crimped, the [strips shall] punches must be thoroughly mixed prior to insertion in punchboards.
* * * * * [(2)] (3) * * *
[(3)] (4) * * *
[(4)] (5) * * *
[(5)] (6) * * *
* * * * * § 901.627. Standards for flares.
[The flare advertising prizes available from the operation of a punchboard shall be made only by the manufacturer. Winning numbers or symbols may not be altered by a club or distributor, and shall:]
(a) A punchboard flare must be made only by the manufacturer. Except as provided by § 901.731(b)(2) (relating to punchboard and pull-tab operation), a flare may not be altered after it leaves the manufacturer's possession and control.
(b) A punchboard flare must:
* * * * * (c) The flare for any punchboard containing hold tickets must provide for a section on the flare, either on the front or back, that contains the hold ticket numbers or symbols and a corresponding space beside each number or symbol upon which the holder of each hold ticket shall sign his name.
Subchapter G. OPERATION OF GAMES
[CLUB] ELIGIBLE ORGANIZATION OPERATION OF GAMES § 901.701. Games of chance permitted.
(a) [Games] A licensed eligible organization may conduct games of chance [may be conducted] only for the purpose of raising funds for [legitimate club] public interest purposes as defined in the act or this part.
(b) [Proceeds shall be used] A licensed eligible organization shall use games of chance proceeds exclusively for [legitimate club] public interest purposes or for the purchase of games of chance permitted by the act or this part.
§ 901.702. Prize limits.
* * * * * (b) Weekly limit. No more than $5,000 in cash or merchandise may be awarded by a [club in a 7-day period] licensed eligible organization during an operating week. [Prizes awarded in a raffle are not included in this amount.]
(c) Raffle limit. No more than $5,000 in cash [for] or merchandise may be awarded in raffles in a calendar month except under a special raffle permit [raffle].
(d) Special raffle permit [raffles]. A [club] licensed eligible organization may conduct a raffle and award a prize valued in excess of $500 only if it has obtained a special raffle permit. The total cash value of prizes awarded under [a] all special [permit raffle may be no more than $25,000] raffle permits during a calendar year may be no more than $100,000.
(e) Prize limit exceptions for daily drawings.
(1) A licensed eligible organization may award a prize in excess of the prize limitations in subsections (a) and (b) if the prize is the result of a carryover of a drawing when the following conditions apply:
(i) The winning number was not held by one of the eligible entrants in the drawing.
(ii) The carryover is not the result of the licensed eligible organization's failure to hold a drawing on an operating day during which chances for a daily drawing were sold.
(iii) The chances for the daily drawing were not sold for an amount in excess of $1.
(iv) No eligible participant was sold more than one chance.
(2) A licensed eligible organization may award a prize in excess of the prize limitation in subsection (b) if the prize is the result of a daily drawing that is set up to pay out no less than 100% of the gross revenues from such drawing. The prizes are still subject to the prize limitation in subsection (a). The limitation in subsection (b) may be exceeded only by the amount of the daily drawing paying 100% of its gross revenues.
(f) Prize limit exceptions for weekly drawings.
(1) The prize limitation in subsection (a) does not apply to weekly drawings. Weekly drawings are subject to the prize limitations in subsection (b).
(2) A licensed eligible organization may award a prize in excess of the prize limitation in subsection (b) if either:
(i) The prize is the result of a carryover of a drawing when the winning number was not held by one of the eligible entrants in the drawing, and the following conditions apply:
(A) The carryover is not the result of the licensed eligible organization's failure to hold a weekly drawing at the end of the operating week during which chances were sold.
(B) The chances for the weekly drawing were not sold for an amount in excess of $1.
(ii) The drawing is set up to pay out no less than 100% of the gross revenues from the drawing.
§ 901.703. Place of conduct.
[Games shall be conducted] A licensed eligible organization shall conduct games of chance only on the licensed eligible organization's licensed premises or when otherwise provided by the act and this part. [Raffle tickets may be sold within any county at other locations for drawings to be held once a month but raffle tickets may be sold] A licensed eligible organization may sell raffle tickets off the licensed premises but only in municipalities [which] that have approved games of chance through a valid referendum.
§ 901.704. [Club] Licensed premises.
(a) [The club shall own the premises upon which games of chance are played or shall lease or sublease the premises 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 or the number of people attending.
(b) A club may not lease the premises from a person who has been convicted of a felony or a violation of the act or the Bingo Law within 10 years of the date of the lessor's conviction.
(c) A club may not permit another club to use its premises for the conduct of games of chance.] An eligible organization's licensed premises must be the location or premises owned or leased by the organization for use as its normal business or operating site. When the premises consists of more than one building, the organization shall designate which building will be used as the licensed premises for the operation of games of chance. If the organization wishes to conduct games of chance in a different building on its licensed premises, it shall notify, in writing, the district attorney and the licensing authority of the change in building site and the date and times that will be affected.
(b) If an eligible organization does not own or lease a location or premises for use as its normal business or operating site, the organization may:
(1) With the written consent of another eligible organization, use another eligible organization's licensed premises for purposes of conducting games of chance so long as the use complies with §§ 901.510 and 901.709 (relating to use of licensed premises by more than one organization; and eligible organizations per premises).
(2) Lease a location or premises on which to conduct games of chance as long as the lease does not violate § 901.513 (relating to gambling facilities).
(3) Make other arrangements to acquire a location or premises, consistent with the act and this part, on which to conduct games of chance.
(c) An eligible organization may not lease a location or premises as a licensed premises under an oral agreement. An eligible organization may lease a location or premises under a written agreement. The rental price may not be based on either the amount of receipts realized from the playing of games of chance or the number of people attending. 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.
(d) An eligible organization may not lease a location or premises as a licensed premises from any person who has been convicted of a violation of the act or this part within 10 years of the date of the lessor's conviction.
§ 901.705. Purchase of games.
[Games] A licensed eligible organization shall [be purchased] purchase games of chance only from a licensed distributor. Raffles, daily drawings and weekly drawings are excluded from this requirement.
§ 901.706. Persons who may not operate or play [small] games of chance.
(a) A person 17 years of age or younger[, or 20 years of age or younger in the case of a club holding a liquor license,] may not be permitted to operate or play games of chance.
(b) A [club] licensed eligible organization may not permit a person who has been convicted of a felony in a State or Federal court within the past 5 years or a violation of the Bingo Law or the act[,] in a State or Federal court within the past 10 years to manage, set up, supervise or participate in the operation of games of chance.
§ 901.707. Compensation.
A [club] licensed eligible organization may not pay compensation to a person for conducting games of chance.
§ 901.708. Persons who may conduct games of chance.
[Games of chance may be conducted only by club] Only licensed eligible organization managers, officers, directors, bar personnel or persons who [have been] are bona fide members of the licensed [club for a least 1 year] eligible organization may conduct games of chance.
§ 901.709. One [club] eligible organization per [premise] premises.
[A location or licensed premises may not be used by more than one licensed club for conducting games of chance.] Only one licensed eligible organization may use a licensed premise to conduct games of chance. A licensed eligible organization may allow another licensed eligible organization that does not own or lease a normal business premises to conduct games of chance on its premises. When an eligible organization uses the premises of another eligible organization, each eligible organization shall notify its respective licensing authority and district attorney in writing.
§ 901.710. Other standards and requirements.
A [club] licensed eligible organization may not provide for play or purchase a [small] game of chance [which] that violates the act or this part.
§ 901.711. [Location for special permit raffles] (Reserved).
[A location or licensed premises may not be used by more than one licensed club for a special permit raffle in a calendar year.]
PUNCHBOARD AND PULL-TAB OPERATION PROCEDURES § 901.731. Punchboard and pull-tab operation.
(a) A person 17 years of age and younger[, or 20 years of age or younger in the case of a club holding a liquor license,] or a person visibly intoxicated or visibly under the influence of a [narcotic] controlled substance may not be allowed to play or sell a punchboard or pull-tab. It is the responsibility of the licensee and the responsibility of the person physically selling the punchboard or pull-tab deal to determine that an unauthorized person is not allowed to play or sell.
(b) Limitations on punchboards, pull-tabs and flares are as follows:
(1) A [club] licensed eligible organization may not permit the display or operation of a punchboard or pull-tab which may have been marked, defaced, tampered with or otherwise placed in a condition or operated in a manner which may deceive the public or which affects the chances of winning or losing upon the taking of a chance thereon.
(2) A licensed eligible organization may alter a flare to indicate that merchandise of equivalent value will substitute for a cash prize in a punchboard or pull-tab game.
* * * * * (d) When [clubs] licensed eligible organizations purchase merchandise to be used as prizes on punchboards or pull-tab deals, the following information [shall] must be on the invoice provided by the seller:
* * * * * (e) Limitations on pull-tab dispensers are as follows:
* * * * * (4) A pull-tab deal once placed in or upon a pull-tab container out for play may not be removed from the container until the deal is permanently removed from public play, except as follows:
* * * * * (ii) Pull-tabs removed by representatives of the county, or other law enforcement agency inspecting the [small] games of chance.
* * * * * § 901.733. Control of prizes.
* * * * * (c) The [club] licensed eligible organization shall display prizes so arranged that a customer can easily determine which prizes are available from a particular punchboard or pull-tab deal located upon the premises.
* * * * * (e) A [club] licensed eligible organization may not offer to pay or actually pay cash in lieu of merchandise prizes which may be won.
(f) When a person wins a cash prize of over $100 or wins a merchandise prize with a cash value of over $100 from the play of a punchboard or pull-tab deal, the [club] licensed eligible organization shall make a record of the win. The record [shall] must disclose, at a minimum, the following information:
* * * * * (g) A [club] licensed eligible organization shall keep the record of prizes awarded containing the information required in subsection (f), and of winning plays for a minimum of 2 years and shall display the record to a representative of the Department, county licensing authority, district attorney or law enforcement [officials] official upon demand. The [club] licensed eligible organization shall immediately mark or perforate the winning pull-tab or punch so that the play cannot be presented again for payment.
§ 901.734. Punchboard and pull-tab inventory and retention.
[A punchboard and pull-tab deals purchased or otherwise obtained by a club shall be controlled and accounted for] A licensed eligible organization shall control and account for punchboard and pull-tab games as follows:
(1) A [club] licensed eligible organization shall closely monitor [punchboard] punchboards and pull-tab [deals] games purchased to assure that serial numbers are correctly entered in records and that each [deal] punchboard and pull-tab game purchased is recorded. The following control procedures apply:
(i) At the close of business on December 31 of each year and before operating punchboards and pull-tab [deals] games after that date, the [club] licensed eligible organization shall take a physical inventory of punchboards and pull-tab [deals] games in play and awaiting play and record the following information separately for punchboards and pull-tab [deals] games:
* * * * * (ii) At the time punchboards and pull-tab [deals] games are delivered, a [club] licensed eligible organization shall assure that purchase invoice data is correct by comparing the actual serial numbers on each punchboard or pull-tab [deal] game to the numbers entered on the purchase invoices.
(iii) The purchases of punchboards or pull-tab [deals] games shall be recorded on a standard distributor's invoice, which includes space for the [club] licensed eligible organization to either attach a records entry label or enter the serial number and the date the [deal] punchboard or the pull-tab game was placed out for play. For punchboards or pull-tab [deals] games purchased, the [club] licensed eligible organization shall enter the data and the serial number in the space on the invoice, adjacent to the distributors entry, by either attaching a records entry label or by written entry.
(2) A punchboard or pull-tab [deal] game which is removed from play [together with the flare], unplayed punches or pull-tabs and winning punches or [plays] pull-tabs for prizes in excess of $100[,] shall be retained by the [club] licensed eligible organization for at least 2 years following the last day of the month in which it was removed from play. The board, unplayed punches or pull-tabs, flare and winning punches or pull-tabs [shall] must remain available for inspection on the licensed premises.
(3) A punchboard or pull-tab [deal] game which is not placed out for public play or is not returned to the distributor from whom it was originally purchased [shall] must be retained on the licensed premises and made available for inspection for at least 2 years.
RAFFLES § 901.741. Prize limits.
A prize awarded may not have a value in excess of $500 unless the raffle is conducted under a special raffle permit. [No] A licensed eligible organization may not award more than $5,000 in cash or merchandise [may be awarded] in raffles in a calendar month [by a licensee].
§ 901.742. [Raffle number limited] Drawing dates.
[Only one raffle may be held per calendar month including a special permit raffle.] Raffles may have one or more drawing dates. The drawing dates and times must be printed on the raffle tickets.
§ 901.743. Raffle tickets.
* * * * * (b) Tickets for use in a raffle shall have a stub or other detachable section, be consecutively numbered and be accounted for separately through the use of a log book showing to whom the tickets were given to be sold. The ticket stub or other detachable section of the ticket [shall] must bear a duplicate number corresponding to the numbers on the ticket and shall contain the purchaser's name, complete address and telephone number. Both parts [shall] must be imprinted with sequential numbers commencing with the number ''1'' through the maximum number of tickets to be sold; or in the case of a raffle where the winner is determined by a drawing of the Pennsylvania State Lottery, the universe of eligible ticket numbers must correspond to the universe of eligible numbers in the State Lottery drawing.
* * * * * (e) A ticket seller shall return the stubs or other detachable section of tickets sold to the [club] eligible organization. The [club] eligible organization shall then place each stub or other detachable section of ticket sold into a [receptable] receptacle out of which the winning tickets are to be drawn. The [receptable shall] receptacle must shall be designed so that each ticket placed therein has an equal opportunity with every other ticket to be the one withdrawn.
* * * * * § 901.744. Control of raffle prizes.
A [club] licensed eligible organization conducting a raffle in which real or personal property prizes are to be awarded shall have paid for in full or otherwise become the owner, without lien or interest of others, of the real or personal property prior to the drawing at which the winners of the prizes are to be determined.
§ 901.745. Printing requirements.
The following information shall be printed upon each raffle ticket sold:
(1) The [date] dates and [time] times of the [drawing] drawings.
(2) The location of the [drawing] drawings.
(3) The name of the [club] licensed eligible organization conducting the raffle.
(4) The [small] games of chance license number of the [club] licensed eligible organization.
(5) The special raffle permit number, if applicable.
* * * * * § 901.746. Prize awarding.
(a) [Raffle] A licensed eligible organization shall award raffle prizes [shall be awarded] on the [date] dates indicated on the raffle ticket unless the licensed eligible organization approves a different date [is approved by the club] and purchasers of tickets are notified in writing. The [date] dates of the drawing may be extended only if one of the following occurs:
* * * * * (c) If a raffle prize remains unclaimed by the winner for 90 days following the date of the raffle drawing and the [club] licensed eligible organization has made a good faith effort to contact the winner [via] by means of telephone and registered mail, for redemption of the prize, the [club] licensed eligible organization may retain the prize or award it in another [small] game of chance. A record of the attempted contact shall be maintained for a minimum of 2 years.
§ 901.748. Prohibition of joint raffles held by licensees.
[Raffles shall be conducted by individual clubs. Licensees] A licensed eligible organization may not join together with another [club] licensed eligible organization to conduct [raffles] a raffle.
§ 901.749. Open drawing.
* * * * * (b) [Stubs or detachable sections drawn shall be immediately exhibited and shall be held open for inspection until the end of the occasion. Stubs or detachable sections shall be retained by the club under this part.] A licensed eligible organization shall immediately exhibit and hold open for inspection drawn raffle ticket stubs or detachable sections until the end of the raffle. A licensed eligible organization shall retain the stubs or detachable sections as provided under the act or this part.
§ 901.751. Ticket sales.
[Raffle] A licensed eligible organization may only sell raffle tickets [may only be sold] in municipalities [which] that have approved the use of [small] games of chance [via] by means of a valid local referendum in accordance with the act. [Raffle] A licensed eligible organization may sell raffle tickets [may be sold] at locations other than the [club] licensed eligible organization premises. A licensed eligible organization that plans to sell raffle tickets in a municipality located in a county other than the county in which it is licensed shall notify that county's district attorney and licensing authority in writing of the location and date that the eligible organization plans to sell raffle tickets.
§ 901.752. Printer requirements.
An entity providing raffle tickets to a licensed [clubs] eligible organization shall attach a copy of the [club's small] organization's games of chance license to the raffle ticket purchase invoice or other document evidencing the sale. If the raffle pays a prize or prizes in excess of $500 each, a copy of the [club's] licensed eligible organization's special raffle permit shall also be attached.
§ 901.753. Means of determining winning numbers.
A licensed eligible organization may use the following means to determine the winners in a raffle:
(1) A random drawing of ticket stubs.
(2) By reference to a specified drawing of the Pennsylvania State Lottery. Both the date of the drawing and the State Lottery game that will be used must be identified on the raffle ticket.
(3) A passive selection device.
[LOTTERIES] (Editor's Note: As part of this proposed rulemaking, the Department is proposing to delete the text of §§ 901.761--901.778, which appears in 61 Pa. Code pages 901-68--901-72, serial pages (265918) to (265922). The following §§ 901.781--901.786 and 901.791--901.796 are proposed to be added. The sections are printed in regular type to enhance readability.)
§§ 901.761--901.778. (Reserved).
DAILY DRAWINGS § 901.781. Daily drawing procedures.
(a) A licensed eligible organization may sell chances for and hold only one daily drawing during each operating day. Bona fide members may purchase chances in a daily drawing only during the operating day on which the drawing will be held.
(b) Daily drawing winners must be determined by random drawing. Daily drawing winners may be determined with the aid of a passive selection device or by reference to drawings conducted by the Department under the State Lottery Law.
(c) A daily drawing must take place on the eligible organization's licensed premises and be conducted in plain view.
(d) A daily drawing must begin and end on the same operating day. An eligible organization may conduct no more than 7 daily drawings during an operating week.
(e) A licensed eligible organization may not sell chances for or conduct a daily drawing during a period when weekly drawing chances are being sold or a weekly drawing is taking place.
(f) Immediately prior to each daily drawing, the eligible organization shall announce the prize amount for the drawing.
(g) The name of a daily drawing prize winner or the fact that a winner was not selected must be prominently displayed on the licensed premises for at least 7 days after the drawing date. If a winner does not claim a prize within 7 days of the drawing, the eligible organization shall notify the winner of the prize and the requirements for claiming the prize.
§ 901.782. Daily drawing chances.
(a) Only a bona fide member of an eligible organization may purchase a chance in a daily drawing.
(b) A licensed eligible organization shall sell a chance in a daily drawing only to a bona fide member.
(c) A chance in a daily drawing may not be sold to or purchased by one bona fide member for the benefit of another bona fide member.
(d) A licensed eligible organization may not sell a chance in a daily drawing for more than $1.
(e) A licensed eligible organization may sell no more than one chance per daily drawing to each of its bona fide members.
(f) A chance in a daily drawing may be sold and purchased only on the eligible organization's licensed premises.
§ 901.783. Posting rules.
(a) An eligible organization shall prominently display the rules for each daily drawing in the area where the chances for the drawing are sold.
(b) At a minimum, the posted rules must include:
(1) The cost of the chance.
(2) The manner of selecting the winner.
(3) The time during which chances may be purchased.
(4) The time of the drawing.
(5) The payout percentage.
(6) Whether the drawing is a carryover drawing and the amount of the carryover jackpot.
(7) The requirements and time limits for claiming prizes as provided for in § 901.784 (relating to claiming prizes).
§ 901.784. Claiming prizes.
(a) The winner of a daily drawing need not be present at the time of the drawing to claim the prize.
(b) An eligible organization may not impose a penalty or limit the amount of a prize based upon a winning member's nonattendance at the time of the drawing.
(c) Only the daily drawing winner may claim the daily drawing prize.
(d) A daily drawing winner shall claim the prize in person and sign for receipt of the prize.
(e) A prize winner shall claim the prize within 30 days from the date of the drawing.
§ 901.785. Invalid State Lottery drawing.
A drawing of the State Lottery that is invalidated must also result in an invalid drawing in a licensed eligible organization's daily drawing which is tied to the State Lottery drawing.
§ 901.786. Unclaimed prize money.
A daily drawing prize that remains unclaimed more than 30 days after the drawing shall be retained by the eligible organization for public interest purposes.
WEEKLY DRAWINGS § 901.791. Weekly drawing procedures.
(a) A licensed eligible organization may sell chances for and hold only one weekly drawing during an operating week. Bona fide members may purchase chances in a weekly drawing only during the operating week in which the drawing will be held. The drawing must be held at the end of the operating week.
(b) Weekly drawing winners must be determined by random drawing. Weekly drawing winners may be determined with the aid of a passive selection device or with reference to drawings conducted by the Department under the State Lottery Law.
(c) A weekly drawing must take place on the eligible organization's licensed premises and be conducted in plain view.
(d) A licensed eligible organization may not sell chances for or conduct a weekly drawing during a period when daily drawing chances are being sold or a daily drawing is taking place.
(e) Immediately prior to each weekly drawing the eligible organization shall announce the prize amount for the drawing.
(f) The name of a weekly drawing prize winner or the fact that a winner was not selected must be prominently displayed on the licensed premises for at least 7 days after the drawing date. If a winner does not claim a prize within 7 days of the drawing, the eligible organization shall notify the winner of the prize and the requirements for claiming the prize.
§ 901.792. Weekly drawing chances.
(a) Only a bona fide member of an eligible organization may purchase chances in a weekly drawing.
(b) A licensed eligible organization shall sell chances in a weekly drawing only to a bona fide member.
(c) A chance or chances in a weekly drawing may not be sold to or purchased by one bona fide member for the benefit of another bona fide member.
(d) A licensed eligible organization may not sell chances in a weekly drawing for more than $1 each.
(e) Chances in a weekly drawing may be sold and purchased only on the eligible organization's licensed premises.
§ 901.793. Posting rules.
(a) An eligible organization shall prominently display the rules for each weekly drawing in the area where the chances for the drawing are sold.
(b) At a minimum, the posted rules must include:
(1) The cost of the chance.
(2) The manner of selecting the winner.
(3) The time during which chances may be purchased.
(4) The time of the drawing.
(5) The payout percentage.
(6) Whether the drawing is a carryover drawing and the amount of the carryover jackpot.
(7) The requirements and time limits for claiming prizes as provided for in § 901.794 (relating to claiming prizes).
§ 901.794. Claiming prizes.
(a) The winner of a weekly drawing need not be present at the time of the drawing to claim the prize.
(b) An eligible organization may not impose a penalty or limit the amount of a prize based upon a winning member's nonattendance at the time of the drawing.
(c) Only the weekly drawing winner may claim the weekly drawing prize.
(d) A weekly drawing winner shall claim the prize in person and sign for receipt of the prize.
(e) A prize must be claimed within 30 days from the date of the drawing.
§ 901.795. Invalid State Lottery drawing.
A drawing of the State Lottery that is invalidated must also result in an invalid drawing in a licensed eligible organization's weekly drawing which is tied to the State Lottery drawing.
§ 901.796. Unclaimed prize money.
A licensed eligible organization shall retain for public interest purposes a weekly drawing prize that remains unclaimed more than 30 days after the drawing.
Subchapter H. SPECIAL RAFFLE PERMITS
SPECIAL RAFFLE PERMITS [AND SPECIAL PERMIT RAFFLES] § 901.801. [Price] Prize limit.
The total value of all special raffle permit prizes during a calendar year may be no more than [$25,000 for each raffle] $100,000.
§ 901.802. Raffle number limit.
Only one raffle may be conducted under each special raffle permit. [The club may hold only one raffle per month including a special permit raffle.]
§ 901.803. Special [permits] raffle permit limit.
A [club] licensed eligible organization is [not] eligible to receive [more than] two special raffle permits in a calendar year, except volunteer fire, ambulance and rescue organizations are eligible to receive three special raffle permits in a calendar year.
§ 901.804. Issuance of permits.
Special raffle permits shall be obtained from the licensing authority at least 30 days before the date on which ticket sales are to begin.
§ 901.805. Rule applicability.
The rules contained in this part apply to special raffle permits. To the extent they are inconsistent with §§ 901.801--901.804, this section and §§ 901.806--901.811, these provisions supersede those elsewhere in this part.
§ 901.806. Required permit.
A special raffle permit is required for each raffle in which a [club] licensed eligible organization proposes to award [a] an individual prize [or prizes] having a cash value in excess of $500 [each] or total prizes having a cash value in excess of $5,000.
§ 901.807. Fees.
The licensing authority may establish a fee for the issuance of a special [permits] raffle permit. The fee may not exceed $25.
§ 901.808. Special raffle permit application.
The application for a special raffle permit [shall] must be made to the licensing authority. The application [shall] must include the following information:
(1) The [club] licensed eligible organization's name.
(2) The [club's small] licensed eligible organization's games of chance license number.
* * * * * § 901.810. Effective period.
A special raffle permit will remain effective from the date on which ticket sales begin until the earlier of the date of the drawing, the expiration date of their [small] games of chance license held when the special raffle permit was issued or 6 months.
§ 901.811. [Location limits] (Reserved).
[A location or licensed premises may not be used by more than one licensed club for a special permit raffle in a calendar year.]
(Editor's Note: The following text is proposed to be added. It is printed in regular text to enhance readability.)
Subchapter I. ENFORCEMENT Sec.
901.901. Criminal complaints. 901.902. Requests for information on criminal complaints, investigations and convictions. 901.903. Notice of eligible organization violation. 901.904. Notice of manufacturer or distributor violation. 901.905. Investigations of manufacturers, distributors and eligible organizations. 901.906. Investigations of a manufacturer or distributor. 901.907. Notice of investigations. 901.908. Information sharing. § 901.901. Criminal complaints.
The district attorney of each county investigates criminal violations of the act. Complaints for criminal violations of the act are initiated as provided by law for criminal complaints and actions.
§ 901.902. Requests for information on criminal complaints, investigations and convictions.
The Department and licensing authority may request information on a complaint, investigation or conviction involving a manufacturer, distributor or eligible organization or a responsible person or member of the organization for purposes of initiating administrative action against the manufacturer, distributor eligible organization.
§ 901.903. Notice of eligible organization violation.
A person may notify the licensing authority of a licensed eligible organization's violation of the act or this part. The notice must be given to the licensing authority that issued the eligible organization's license.
§ 901.904. Notice of manufacturer or distributor violation.
A person may notify the Department of a registered manufacturer or licensed distributor's violation of the act or this part.
§ 901.905. Investigations of manufacturers, distributors and eligible organizations.
The licensing authority, or its designee, may investigate an eligible organization when it has reason to believe that a violation of the act or this part has occurred or is occurring.
§ 901.906. Investigations of a manufacturer or distributor.
The Department, or its designee, may investigate a manufacturer or distributor when it has reason to believe that a violation of the act or this part has occurred or is occurring.
§ 901.907. Notice of investigations.
(a) The licensing authority and the Department may provide information and documentation regarding an investigation of a manufacturer, distributor or eligible organization to the district attorney or law enforcement official for purposes of criminal investigation and prosecution.
(b) The licensing authority may provide information and documentation to the Department about violations of the act or this part by a manufacturer or distributor that it discovers as part of an investigation involving an eligible organization.
(c) The Department may provide information and documentation to a licensing authority about violations of the act or this part by an eligible organization that it discovers as part of an investigation involving a manufacturer or distributor.
§ 901.908. Information sharing.
The right of the Department, licensing authorities, district attorneys and law enforcement officials to transmit and share information for purposes of enforcing the act or this part may not be restricted by this section or this part.
[Pa.B. Doc. No. 04-1853. Filed for public inspection October 8, 2004, 9:00 a.m.]
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