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