PRINTER'S NO. 2034
No. 1308 Session of 2006
INTRODUCED BY M. WHITE, VANCE, WENGER, CORMAN, RAFFERTY,
D. WHITE, ROBBINS, PICCOLA, WAUGH, ORIE AND REGOLA,
SEPTEMBER 19, 2006
REFERRED TO STATE GOVERNMENT, SEPTEMBER 19, 2006
AN ACT
1 Amending Title 4 (Amusements) of the Pennsylvania Consolidated
2 Statutes, further providing for membership of the
3 Pennsylvania Gaming Control Board, for slot machine license
4 fee and for severability.
5 The General Assembly of the Commonwealth of Pennsylvania
6 hereby enacts as follows:
7 Section 1. Section 1201(b), (c), (d), (f), (h)(7) and (k) of
8 Title 4 of the Pennsylvania Consolidated Statutes are amended
9 and the section is amended by adding a subsection to read:
10 § 1201. Pennsylvania Gaming Control Board established.
11 * * *
12 [(b) Membership.--The board shall consist of the following
13 members, who shall serve a set term and may not be removed
14 except for good cause:
15 (1) Three members appointed by the Governor, each being
16 referred to as a "gubernatorial appointee."
17 (2) One member appointed by each of the following
18 legislative caucus leaders, each being referred to as a
1 "legislative appointee":
2 (i) The President pro tempore of the Senate.
3 (ii) The Minority Leader of the Senate.
4 (iii) The Speaker of the House of Representatives.
5 (iv) The Minority Leader of the House of
6 Representatives.
7 (c) Initial appointments to board.--
8 (1) Gubernatorial appointee members initially appointed
9 under subsection (b)(1) shall serve an initial term of one,
10 two and three years respectively as designated by the
11 Governor at the time of appointment and until their
12 successors are appointed and qualified.
13 (2) Legislative appointee members initially appointed
14 under subsection (b)(2) shall serve until the third Tuesday
15 in January 2007 and until their successors are appointed and
16 qualified.
17 (3) Any appointment to fill a vacancy shall be for the
18 unexpired term. Members so appointed to fill the unexpired
19 term of an initial appointee shall be subject to the
20 provisions of subsection (d).
21 (d) Appointments after expiration of initial term or upon
22 vacancy.--Upon the expiration of a term of a member appointed
23 under this subsection or upon the existence of a vacancy of a
24 member appointed pursuant to subsection (c) or this subsection,
25 the appointing authority shall appoint a member subject to the
26 following:
27 (1) For a gubernatorial appointment under subsection
28 (b)(1), the term shall be for three years and until a
29 successor is appointed and qualified.
30 (2) Terms for legislative appointee members appointed
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1 under subsection (b)(2) shall be for a two-year term and
2 shall expire on the third Tuesday of January of such year,
3 but such members shall continue to serve until their
4 successors are appointed and qualified.
5 (3) No legislative appointee member shall serve more
6 than three full successive terms.
7 (4) No gubernatorial appointee member shall serve more
8 than two full successive terms.
9 (5) An appointment to fill a vacancy shall be for the
10 remainder of the unexpired term.]
11 (b.1) Membership.--
12 (1) The board shall consist of five members appointed by
13 the Governor, by and with the advice and consent of a
14 majority of the members of the Senate.
15 (2) The term of office of each appointed member of the
16 board shall be five years, except that in the initial
17 appointment of the members of the board under this
18 subsection, one member shall be appointed for a term of one
19 year, one member for a term of two years, one member for a
20 term of three years, one member for a term of four years and
21 one member for a term of five years.
22 (3) The Governor may submit the nomination to the Senate
23 within 60 days prior to the expiration of the term or the
24 effective date of the resignation of the member whom the
25 nominee would replace and shall submit that nomination no
26 later than 90 days after the expiration of the term or the
27 effective date of the resignation. A board member may
28 continue to hold office for a period not to exceed six months
29 beyond the expiration of his term if his successor has not
30 been duly appointed and qualified according to law.
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1 * * *
2 (f) [Qualified majority] Majority vote.--
3 (1) [Except as permitted in paragraphs (2) and (3), any]
4 Any action, including, but not limited to, the approval,
5 issuance, denial or conditioning of any license by the board
6 under this part or the making of any order or the
7 ratification of any permissible act done or order made by one
8 or more of the members, shall require a [qualified majority
9 vote consisting of at least one gubernatorial appointee and
10 the four legislative appointees.] majority vote.
11 [(2) Any action to suspend or revoke, not renew, void or
12 require forfeiture of a license or permit issued under this
13 part, to impose any administrative fine or penalty under this
14 part or to issue cease and desist orders or similar
15 enforcement actions shall require a majority vote of all the
16 members appointed to the board.
17 (3)] (2) Notwithstanding any other provision to the
18 contrary, a member shall disclose the nature of his
19 disqualifying interest, disqualify himself and abstain from
20 voting in a proceeding in which his or her impartiality may
21 be reasonably questioned, including, but not limited to,
22 instances where he or she knows that they possess a
23 substantial financial interest in the subject matter of the
24 proceeding or any other interest that could be substantially
25 affected by the outcome of the proceeding. [In such
26 circumstances in which it is a legislative appointee member
27 that has disqualified himself or herself, the qualified
28 majority shall consist of the remaining three legislative
29 appointees and at least two gubernatorial appointees.]
30 * * *
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1 (h) Qualifications and restrictions.--
2 * * *
3 (7) At the time of appointment and annually thereafter,
4 each member shall disclose the existence of all ownership
5 interests in licensed facilities and all securities in any
6 licensed entity or applicant, its affiliates or subsidiaries
7 held by the member, the member's spouse and any minor or
8 unemancipated children and must divest such ownership
9 interests in licensed facilities or securities prior to an
10 appointment becoming final. A member may not acquire any
11 security in any licensed entity, its affiliates or
12 subsidiaries during the member's tenure. The disclosure
13 statement shall be filed with the executive director of the
14 board and with the [appointing authority for such member]
15 Governor's Office and shall be open to inspection by the
16 public at the office of the board during the normal business
17 hours of the board during the tenure of the member and for
18 two years after the member leaves office.
19 * * *
20 (k) Appointments.--[The appointing authorities shall make
21 their initial appointments within 60 days of the effective date
22 of this part.] No appointment shall be final until receipt by
23 the [appointing authority] Governor of the required background
24 investigation of the appointee by the Pennsylvania State Police
25 which shall be completed within 30 days. No person who has been
26 convicted in any domestic or foreign jurisdiction of a felony or
27 gambling offense shall be appointed to the board.
28 * * *
29 Section 2. Sections 1209(c) and (f) and 1902 of Title 4 are
30 amended to read:
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1 § 1209. Slot machine license fee.
2 * * *
3 (c) Credit against tax for slot machine licensees.--If the
4 rate of the tax imposed by section 1403 (relating to
5 establishment of State Gaming Fund and net slot machine revenue
6 distribution) is increased at any time during the term of ten
7 years following the initial issuance of the slot machine
8 license, the slot machine licensee shall be entitled to a credit
9 against subsequent payment of the tax equal to the difference
10 between the tax calculated at the rate when the license was
11 issued and the tax calculated at the increased rate. This credit
12 shall be applied on a dollar-for-dollar basis as and when the
13 tax is payable as set forth in section 1403 but shall not extend
14 beyond the ten-year period following the initial issuance of the
15 license. The aggregate amount of all credits provided shall not
16 exceed the amount of the licensing fee paid by the licensee. The
17 department shall enter into a contract with each slot machine
18 licensee explicitly setting forth the terms and conditions of
19 this credit [and which also specifically incorporates the
20 requirements of subsection (f)].
21 * * *
22 [(f) Return of slot machine license fee.--
23 (1) The entire one-time slot machine license fee of
24 $50,000,000 for each Category 1 and Category 2 slot machine
25 license shall be returned to each licensee in the event
26 section 1201 (relating to Pennsylvania Gaming Control Board
27 established), 1202 (relating to general and specific powers)
28 or 1307 (relating to number of slot machine licenses) is
29 amended or otherwise altered by an act of the General
30 Assembly within five years following the initial issuance of
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1 any slot machine licenses pursuant to section 1301 (relating
2 to authorized slot machine licenses) to change:
3 (i) the composition of the board;
4 (ii) the number or voting powers of members of the
5 board;
6 (iii) the manner in which members are nominated or
7 appointed to the board;
8 (iv) the length of term for which each member
9 serves;
10 (v) the general jurisdiction of the board in a
11 manner that impairs or otherwise reduces the board's
12 licensing authority; or
13 (vi) section 1307 to increase the statutory maximum
14 number of permissible licensed facilities.
15 (2) In the event that this part is amended or otherwise
16 altered by an act of the General Assembly as described
17 pursuant to paragraph (1):
18 (i) In the sixth year following the initial issuance
19 of any slot machine licenses pursuant to section 1301, a
20 Category 1 and 2 slot machine licensee shall be entitled
21 to a partial return of the one-time slot machine license
22 fee in the amount of $41,666,667.
23 (ii) In the seventh year, the licensee shall be
24 entitled to a partial return of the one-time slot machine
25 license fee in the amount of $33,333,334.
26 (iii) In the eighth year, the licensee shall be
27 entitled to a partial return of the one-time slot machine
28 license fee in the amount of $25,000,000.
29 (iv) In the ninth year, the licensee shall be
30 entitled to a partial return of the one-time slot machine
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1 license fee in the amount of $16,666,668.
2 (v) In the tenth year, the licensee shall be
3 entitled to a partial return of the one-time machine
4 license fee in the amount of $8,333,334.
5 In the event that the action described in paragraph (1) occurs
6 after the expiration of ten years, the licensee shall not be
7 entitled to a return of any portion of the one-time slot machine
8 license fee. Notwithstanding the foregoing, no slot machine
9 licensee shall be entitled to the return of any portion of the
10 fee as a result of any act of the General Assembly insofar as it
11 implements a recommendation made by the board pursuant to a
12 qualified majority vote. In the event a full or partial return
13 of the slot machine license fee imposed pursuant to subsection
14 (a) becomes due pursuant to this subsection, the amount to be
15 returned to any slot machine licensee shall be reduced on a
16 dollar-for-dollar basis by the total accumulated tax credits
17 granted to such licensee pursuant to subsection (c). In no event
18 shall the total amount of the slot machine license fee returned,
19 combined with the total tax credits granted, exceed the amounts
20 set forth in this subsection for any licensee. The total or
21 partial return of the slot machine license fee shall extinguish
22 a licensee's right to claim any further tax credits pursuant to
23 subsection (c).]
24 § 1902. Severability.
25 [(a) General rule.--Except as provided in subsection (b),
26 the] The provisions of this part are severable. If any provision
27 of this part or its application to any person or circumstances
28 is held invalid, the invalidity shall not affect other
29 provisions or applications of this part which can be given
30 effect without the invalid provision or application.
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1 [(b) Limitation.--If any of the provisions of section 1201
2 (relating to Pennsylvania Gaming Control Board established) or
3 1209 (relating to slot machine license fee) or their application
4 to any person or circumstance are held to be invalid by any
5 court, the remaining provisions of this part and its application
6 shall be void.]
7 Section 3. (a) The members of the Pennsylvania Gaming
8 Control Board in office on the effective date of this section
9 shall continue to hold office until January 31, 2007, and their
10 successors shall be appointed as provided in 4 Pa.C.S. §
11 1201(b.1) to serve beginning February 1, 2007.
12 (b) All rules and regulations adopted, orders and decisions
13 made and other actions taken by the board prior to the effective
14 date of this section shall remain in full force and effect until
15 modified, repealed, suspended, superseded or otherwise changed
16 by appropriate action of the board.
17 (c) Existing contracts and obligations of the board, entered
18 into or created under this part and in force and effect on the
19 effective date of this section, shall remain in full force and
20 effect and shall continue to be performed by the board.
21 Section 4. This act shall take effect immediately.
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