New law could help local groups
The holiday season is a perfect time to give thanks to our hometown organizations that strengthen the fabric of our communities.
Groups like our VFWs, fire companies and fraternal organizations, among others, help everyone from our youngest to oldest community members, providing unique educational and social opportunities to residents across the 52nd District. Many times, these groups are able to offer such assistance through proceeds from raffles and drawings.
But recently, Gov. Tom Corbett signed into law legislation that stands to prevent these organizations from carrying out their very important charitable work in our neighborhoods. Legislation that was originally drafted to help ease the burden of state regulations on small games of chance for our local groups has now led to the largest expansion of gambling in recent history.
Under the new law, about 4,500 taverns across Pennsylvania would be licensed to operate games such as raffles, daily drawings and pull-tabs. These establishments will be able to pay out a maximum of $35,000 per week in prizes that were once reserved for our small groups. What’s more, it’s estimated that the Pennsylvania Lottery could see a 5 percent reduction in profits in light of the new law.
It’s no secret that our small clubs and nonprofits are already facing enormous challenges in today’s tough economic climate. Many have had to significantly scale back on operations, offering fewer scholarships and cutting back on veterans services. Some have had to close their doors altogether. Unfortunately, in the wake of this new law, this alarming trend could become the status quo in the next few years.
However, there are some bright spots in this law that are cause for cautious optimism. Clubs that rake in less than $40,000 annually may keep up to $20,000 for operating expenses, and only those with proceeds exceeding $20,000 yearly will be required to submit an annual report to the state. These regulations aim to ease burdensome requirements on our small groups as they work to stay afloat.
I have followed this issue particularly closely over the past year. In May, I held a public hearing on the subject in Uniontown, which was attended by representatives from the Perryopolis Volunteer Fire Department and the American Legion, as well as the Fayette County district attorney. I have also spoken with colleagues on both sides of the aisle to lobby for what’s best for our communities.
No matter what happens in the coming months and years, I am committed to making sure our community groups, like the VFWs, American Legions and fire companies, can continue to do the important work we’ve all come to know and expect. I hope our generous neighbors throughout the 52nd District will do the same.
For more information about how this legislation will affect our local organizations, I encourage you to visit my website, www.pahouse.com/kula.
State Rep. Deberah Kula, a Democrat, represents the 52nd state legislative district, which includes parts of Fayette and Westmoreland countiesl.