PA HB290 ~ Myers Integrated Systems, LLC initial thoughts after reading through HB290

Please note this is our initial thoughts only.  This is what we perceived from HB290 (and part of HB1098).

The Pennsylvania Liquor Control Enforcement Bureau is the authority and we design our systems to be compliant to what the PLCE Bureau, PA Department of Revenue and your county laws dictate. 

·         The act shall take effect in 60 days (from the day the Governor signs the Bill into Law)

      ·         Each eligible organization which has proceeds in excess of $2,500 in a calendar year shall submit an annual report to the department.

·         Must retain records for a period of 2 years after the game is out of play, but no longer than 2 years.

·         PLCE Bureau will randomly Audit 5% of all organizations.

·         Pool Games and Race Night Games will now be allowed by Organizations

§  (New Schedules will most likely be introduced by the PLCE Bureau) 

·         Also, Raffles have been modified to allow for ‘Raffle Auctions’  (aka Chinese Auctions) where Raffle tickets are placed in a location assigned to a specific prize.

§  (This could also introduce a new schedule)

 

·         The Bill makes it easier to donate money to help local people that are going through a tragedy or are in need of help with medical expenses etc.

 

·         Organizations will need to record names and addresses of Person’s winning over $600 no matter the ‘cost of chance to play the game’.  The person(s) will also need to be presented with a receipt with the gaming/prize details including the date. 

§  Previous to HB290 the amount was over $100 (minus the cost of game).

·         Weekly Prize limits have been raised from $25,000 to $35,000.

 

·         Individual Prize Limits raised from $1000 to $2000.

 

·         Raffle Prize Limit in a month raised from $10,000 to $15,000.

 

·         No more than $150,000 prizes awarded in a calendar year (was $100,000).

 

·         Daily Drawing Prize limit went from $1000 to $2000 (unless the prize includes a carryover).

 

·         Specifically states that concurrent Daily and Weekly Drawings can occur.

 

·         Pull-tab and Punchboard games cannot have a single prize in excess of $2000.

 

·         If organizations have proceeds that exceed $40,000 per year they are required to have a separate SGOC Checking account. 

§  (previously ALL SGOC licensees were required to have a separate bank account)

 

Below information I extracted from HB1098 as HB290 only specified the requirement for clubs to report if the proceeds were over $2500 and did not specify the distribution split requirement.

 

Beginning in January 1, 2013.  If a clubs proceeds is $40,000 or less the club can retain the first $20,000 in proceeds in the following calendar year before a 60-40 split applies (see 60-40 split below). 

 Question to the lawmakers:  What happens if proceeds exceed $40,000?  Do the organizations still get to keep the first $20,000?  What is the difference and/or significance of reaching $40,001?

 60-40 Split.  Clubs must donate 60% of the proceeds for public interest purposes and they can use 40% for the operational expenses relating to the club licensee (same categories listed as when it was 30%)

Resources:
Please consider this as it is stated;  Initial thoughts on HB290.  The resources were the actual HB290 and HB1098 Bills.  Please note that this is not a comprehensive overview of the Bill.

http://www.legis.state.pa.us/cfdocs/legis/PN/Public/btCheck.cfm?txtType=PDF&sessYr=2013&sessInd=0&billBody=H&billTyp=B&billNbr=0290&pn=2651

http://www.legis.state.pa.us/cfdocs/legis/PN/Public/btCheck.cfm?txtType=PDF&sessYr=2013&sessInd=0&billBody=H&billTyp=B&billNbr=1098&pn=2639