May. 05, 2020

HARRISBURG –During this time of crisis and economic uncertainty, social organizations are also feeling the financial constraints of a closed economy. To aid this these organizations, which provide charity contributions to our communities, Reps. Kate Klunk (R-York), Frank Farry (R-Bucks) and John Hershey (R-Mifflin/Juniata/Franklin) have introduced House Bill 777 to allow social organizations to utilize small games of chance profits to meet financial obligations during the COVID-19 crisis.

“Whether it be sponsoring the local tee-ball league or providing funding to assist veterans, our social clubs play a huge part in communities across Pennsylvania and fill a void that would otherwise be left vacant. Our proposal would ensure these organizations remain a key part of our communities now and in the future,” Klunk said.

Specifically, the proposal would alter the state-imposed financial requirements social clubs must adhere to regarding small games of chance profits. Normally, proceeds from small games of chance are split with 60% going to charitable purposes and the remaining 40% staying with the clubs. The proposal would change the fund distribution ratio during the COVID-19 pandemic, so that a club would be able to use the 60% to cover general operating expenses, such as rent, payroll and utilities.

Social clubs were ordered to be closed during the COVID-19 pandemic leaving them without the ability to raise funds to cover expenses.

“With this change, clubs would be given a financial lifeline to help them stay afloat during this emergency disaster,” Hershey said.

“We need to ensure these clubs can eventually reopen their doors, fund operations and get back to fundraising for our local charities and projects that our communities will desperately need as our state recovers” added Farry.

The House Gaming Oversight Committee unanimously passed House Bill 777. The bill now goes to the full House for consideration.

Representative Kate A. Klunk
169th Legislative District
Pennsylvania House of Representatives

Media Contact: Greg Gross
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