SENATE AMENDED
PRIOR PRINTER'S NOS. 44, 2301 PRINTER'S NO. 3711
No. 35 Session of 1983
INTRODUCED BY TIGUE, RICHARDSON, BLAUM, CAWLEY, F. E. TAYLOR,
BELFANTI, BURNS, SALOOM, SERAFINI, OLASZ, CAPPABIANCA,
PETRARCA, DOMBROWSKI, STEVENS, COSLETT, CLARK, JAROLIN, FEE,
McMONAGLE, McCALL, DUFFY, TRELLO, GALLEN, KASUNIC, LETTERMAN,
LESCOVITZ, HASAY, DALEY, KUKOVICH, BUNT, TELEK AND COHEN,
JANUARY 25, 1983
SENATOR O'CONNELL, STATE GOVERNMENT, IN SENATE, RE-REPORTED
AS AMENDED, NOVEMBER 19, 1984
AN ACT
1 Providing for the manufacture, assembly and sale of certain <--
2 mechanical, electronic and coin-operated gaming machines in
3 the Commonwealth of Pennsylvania.
4 PROVIDING FOR A STATEWIDE REFERENDUM ON THE LEGALIZATION OF <--
5 GAMBLING.
6 PROVIDING FOR LICENSING AND PLACEMENT OF VIDEO GAMING MACHINES <--
7 IN THIS COMMONWEALTH; PROVIDING POWERS AND DUTIES FOR THE
8 DEPARTMENT OF REVENUE; PROVIDING FOR LOCAL OPTION; AND
9 PROVIDING FOR DISTRIBUTION OF REVENUES.
10 TABLE OF CONTENTS
11 SECTION 1. SHORT TITLE.
12 SECTION 2. DEFINITIONS.
13 SECTION 3. POWERS AND DUTIES OF DEPARTMENT.
14 SECTION 4. USE OF ENFORCEMENT AGENTS.
15 SECTION 5. UNLAWFUL USE BY MINORS.
16 SECTION 6. DIRECT DISPENSING.
17 SECTION 7. LOCAL OPTION.
18 SECTION 8. AUTHORITY TO LICENSE.
1 SECTION 9. DISTRIBUTION OF PROCEEDS.
2 SECTION 10. LOCAL GOVERNMENT REVENUES.
3 SECTION 11. CREATION OF ACCOUNT.
4 SECTION 12. MANUFACTURING, DISTRIBUTION AND SALES.
5 SECTION 13. PREEMPTION OF LOCAL TAXES AND LICENSE FEES.
6 SECTION 14. EXEMPTION FROM STATE GAMBLING LAWS.
7 SECTION 15. EXEMPTION FROM FEDERAL REGULATION.
8 SECTION 16. EFFECTIVE DATE.
9 The General Assembly of the Commonwealth of Pennsylvania
10 hereby enacts as follows:
11 Section 1. Legislative purpose. <--
12 The General Assembly of Pennsylvania recognizes that the
13 number of persons unemployed in Pennsylvania is at or near an
14 all-time high. Pennsylvania has been losing jobs to other states
15 for a number of years. The General Assembly realizes that some
16 positive steps must be made in order to stimulate the economy
17 and halt this downward trend of unemployment. One positive step
18 concerns this legislation which would permit the manufacturing
19 of games of chance to be utilized in states where their use is
20 not prohibited by law. It is a well-known economic fact that an
21 increase in manufacturing has a beneficial effect on the total
22 economy of a state, to include stepped-up employment.
23 Section 2. Short title.
24 This act shall be known and may be cited as the Game
25 Manufacturing Law.
26 Section 3. Definitions.
27 The following words and phrases when used in this act shall
28 have the meanings given to them in this section unless the
29 context clearly indicates otherwise:
30 "Game machine." Any mechanical, electrical or other coin-
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1 operated device, contrivance or machine which, upon insertion of
2 a coin or token therein or upon payment of any consideration
3 whatsoever, is available to play or operate with the opportunity
4 to win coins, tokens, cash, premiums, merchandise or anything of
5 value whatsoever, by application of the element of skill or
6 chance, or both. A slot machine shall be considered as such a
7 machine.
8 "Person." An individual, firm, partnership, company,
9 association or corporation.
10 Section 4. Qualifications.
11 (a) Making and distribution of machines.--It shall be lawful
12 for any person to engage in the manufacture, assembly and
13 distribution of all coin-operated game machines as provided for
14 in this act.
15 (b) Permitted sales.--It shall be lawful for any person
16 engaged in the manufacture, assembly or distribution of any game
17 machine to sell or offer to sell any game machine to any person,
18 for use in any state wherein the use of such a type of game
19 machine is not prohibited by law.
20 (c) Use of premises.--It shall be lawful for any person
21 being the owner, tenant, lessee or occupant of any premises to
22 use the premises or to knowingly permit the premises to be used
23 for the manufacture, assembly and distribution of game machines
24 in accordance with the provisions of this act.
25 Section 5. Prohibitions.
26 It shall be unlawful for any person engaged in the
27 manufacture, assembly or distribution of game machines to sell
28 any slot machine for use in the Commonwealth unless otherwise
29 permitted by law.
30 Section 6. Penalties.
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1 Any person who violates any provision of this act commits a
2 misdemeanor and shall, upon conviction, be sentenced to pay a
3 fine not exceeding $10,000 and costs of prosecution or undergo
4 imprisonment not exceeding 30 days, or both.
5 Section 7. Repeals.
6 (a) Specific repeal.--The provisions of 18 Pa.C.S. § 5513
7 (relating to gambling devices, gambling, etc.) are repealed to
8 the extent that they are inconsistent with this act.
9 (b) General repeal.--All other acts and parts of acts are
10 repealed insofar as they are inconsistent with this act.
11 Section 8. Effective date.
12 This act shall take effect in 60 days.
13 SECTION 1. REFERENDUM. <--
14 THE QUESTION OF THE LEGALIZATION OF GAMBLING THROUGH CASINOS
15 OR BY THE USE OF GAMING MACHINES SHALL BE SUBMITTED TO THE
16 ELECTORS AT THE NEXT PRIMARY ELECTION FOLLOWING ENACTMENT OF
17 THIS ACT.
18 SECTION 2. QUESTIONS.
19 THE QUESTIONS SHALL BE IN SUBSTANTIALLY THE FOLLOWING FORM:
20 DO YOU FAVOR THE LEGALIZATION IN
21 PENNSYLVANIA OF GAMBLING THROUGH CASINOS?
22 DO YOU FAVOR THE LEGALIZATION IN
23 PENNSYLVANIA OF GAMBLING BY GAMING MACHINES?
24 DO YOU FAVOR THE LEGALIZATION IN
25 PENNSYLVANIA OF GAMBLING THROUGH CASINOS
26 AND GAMING MACHINES?
27 SECTION 3. CONDUCT OF ELECTION.
28 THE ELECTION SHALL BE CONDUCTED UNDER THE ACT OF JUNE 3, 1937
29 (P.L.1333, NO.320), KNOWN AS THE PENNSYLVANIA ELECTION CODE.
30 SECTION 4. EFFECTIVE DATE.
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1 THIS ACT SHALL TAKE EFFECT IMMEDIATELY.
2 SECTION 1. SHORT TITLE. <--
3 THIS ACT SHALL BE KNOWN AND MAY BE CITED AS THE VIDEO GAMING
4 CONTROL LAW.
5 SECTION 2. DEFINITIONS.
6 THE FOLLOWING WORDS AND PHRASES WHEN USED IN THIS ACT SHALL
7 HAVE THE MEANINGS GIVEN TO THEM IN THIS SECTION UNLESS THE
8 CONTEXT CLEARLY INDICATES OTHERWISE:
9 "CLUBS." NONPROFIT ESTABLISHMENTS WHICH HAVE A VALID
10 PENNSYLVANIA CLUB LIQUOR LICENSE. THE TERM INCLUDES THE HOLDERS
11 OF SPECIAL OCCASION PERMITS.
12 "DEPARTMENT." THE DEPARTMENT OF REVENUE.
13 "DISTRIBUTOR." AN INDIVIDUAL, PARTNERSHIP OR CORPORATION
14 THAT BUYS, SELLS OR LEASES VIDEO GAMING MACHINES. THE TERM
15 EXCLUDES MACHINE OWNERS.
16 "LICENSED ESTABLISHMENTS." A RESTAURANT, BAR, TAVERN, HOTEL
17 OR CLUB WHICH HAS A VALID PENNSYLVANIA LIQUOR LICENSE.
18 "MACHINE OWNER." AN INDIVIDUAL, PARTNERSHIP OR CORPORATION
19 THAT OWNS, SERVICES AND MAINTAINS VIDEO GAMING MACHINES FOR
20 PLACING IN VARIOUS STATE-APPROVED PLACES.
21 "MANUFACTURER." AN INDIVIDUAL, PARTNERSHIP OR CORPORATION
22 THAT MANUFACTURES OR ASSEMBLES VIDEO GAMING MACHINES.
23 "NET MACHINE REVENUES." THOSE NET PROFITS REMAINING FROM
24 VIDEO GAMING MACHINES AFTER PRIZES HAVE BEEN PAID.
25 "PARTICIPATING POLITICAL SUBDIVISION." A CITY, TOWN,
26 TOWNSHIP OR BOROUGH WHERE VIDEO GAMING MACHINES ARE IN USE UNDER
27 THIS ACT.
28 "VIDEO GAMING MACHINE." A DEVICE OR MACHINE WHICH, UPON
29 INSERTION OF A COIN, IS AVAILABLE TO PLAY OR SIMULATE THE PLAY
30 OF ANY GAME UTILIZING A VIDEO DISPLAY AND MICROPROCESSORS AND IN
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1 WHICH, WHETHER BY THE SKILL OF THE PLAYER OR BY CHANCE, THE
2 PLAYER MAY RECEIVE FREE GAMES OR CREDITS WHICH CAN BE REDEEMED
3 FOR ANYTHING OF VALUE.
4 SECTION 3. POWERS AND DUTIES OF DEPARTMENT.
5 (A) GENERAL POWERS AND DUTIES.--THE DEPARTMENT SHALL HAVE
6 THE POWER TO PROMULGATE REGULATIONS AND ITS DUTY SHALL BE TO:
7 (1) PROVIDE FOR LICENSING PROCEDURES UNDER THIS ACT.
8 (2) PRESCRIBE NECESSARY APPLICATION AND REPORTING FORMS
9 TO BE USED IN THIS ACT.
10 (3) GRANT OR DENY LICENSE APPLICATIONS.
11 (B) LICENSE APPROVAL.--THE DEPARTMENT MAY NOT DENY AN
12 APPLICATION OR LIMIT, CONDITION OR RESTRICT A LICENSE EXCEPT FOR
13 REASONABLE CAUSE. AN APPLICANT SHALL NOT BE GRANTED A LICENSE
14 UNLESS:
15 (1) IF APPLICANT IS AN INDIVIDUAL:
16 (I) THE APPLICANT IS OF GOOD CHARACTER, HONESTY AND
17 INTEGRITY AND IS QUALIFIED AND HAS ADEQUATE FINANCING
18 FROM SUITABLE SOURCES.
19 (II) THE APPLICANT IS A CITIZEN OF THE UNITED STATES
20 AND A RESIDENT OF THIS COMMONWEALTH FOR AT LEAST TWO
21 YEARS PREVIOUS TO THE APPLICATION.
22 (2) IF APPLICANT IS A PARTNERSHIP, PARTNERS, GENERAL AND
23 LIMITED, MUST QUALIFY AS INDIVIDUALS UNDER PARAGRAPH (1).
24 (3) IF APPLICANT IS A CORPORATION:
25 (I) IT MUST BE A REGISTERED PENNSYLVANIA CORPORATION
26 FOR AT LEAST TWO YEARS.
27 (II) AT LEAST 50% OF ITS DIRECTORS MUST BE
28 PENNSYLVANIA RESIDENTS FOR AT LEAST TWO YEARS.
29 (III) ALL OFFICERS MUST QUALIFY AS INDIVIDUALS UNDER
30 PARAGRAPH (1).
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1 (IV) STOCKHOLDERS MUST BE INDIVIDUALS.
2 (V) EVERY STOCKHOLDER OWNING 5% OR MORE OF THE STOCK
3 OF THE CORPORATION MUST QUALIFY AS AN INDIVIDUAL UNDER
4 PARAGRAPH (1).
5 (C) HEARING.--A PERSON WHO WAS DENIED A LICENSE SHALL HAVE
6 THE RIGHT TO A HEARING BEFORE THE DEPARTMENT. THE HEARING SHALL
7 BE CONDUCTED IN ACCORDANCE WITH THE PROVISIONS OF TITLE 2 OF THE
8 PENNSYLVANIA CONSOLIDATED STATUTES (RELATING TO ADMINISTRATIVE
9 LAW AND PROCEDURE).
10 (D) WINNING PERCENTAGE.--THE DEPARTMENT SHALL PRESCRIBE
11 WINNING PERCENTAGE AND NECESSARY MACHINE ACCOUNTING INFORMATION.
12 VIDEO GAMING MACHINES SHALL BE SET TO AWARD PLAYERS MINIMUM
13 WINNINGS OF 80% OR MORE. VIDEO GAMING MACHINES WILL HAVE
14 ELECTRONIC ACCOUNTING DEVICES TO VERIFY REVENUE DUE AND WINNING
15 PERCENTAGES.
16 (E) VIOLATIONS.--THE DEPARTMENT SHALL INVESTIGATE, SUSPEND
17 OR REVOKE LICENSES FOR VIOLATIONS OF THIS ACT AND SHALL HOLD
18 HEARINGS IN WHICH TO CONSIDER THESE MATTERS. A LICENSE MAY NOT
19 BE SUSPENDED OR REVOKED UNTIL A HEARING IS COMPLETED. THE FINE
20 FOR A VIOLATION OF THIS ACT OR OF REGULATIONS PROMULGATED UNDER
21 THIS ACT MAY NOT EXCEED $5,000 FOR THE FIRST VIOLATION AND
22 $15,000 FOR EACH SUBSEQUENT VIOLATION. IN ADDITION TO THE FINE,
23 INTEREST ON ANY MONEYS HELD IMPROPERLY, AS THE DEPARTMENT MAY
24 PRESCRIBE, SHALL BE COLLECTED.
25 (F) STANDARDS OF CONDUCT.--THE DEPARTMENT SHALL PROMULGATE
26 REGULATIONS FOR THE CONDUCT OF THE OFFICERS, EMPLOYEES AND
27 AGENTS OF THE DEPARTMENT.
28 SECTION 4. USE OF ENFORCEMENT AGENTS.
29 (A) POWERS.--EMPLOYEES OF THE DEPARTMENT DESIGNATED AS
30 ENFORCEMENT AGENTS ARE EMPOWERED TO INVESTIGATE THE BACKGROUND
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1 AND ASSOCIATES OF LICENSE APPLICANTS TO WHATEVER EXTENT IS
2 JUDGED NECESSARY BY THE DEPARTMENT. NO INVESTIGATION MAY BE
3 UNDERTAKEN PRIOR TO THE SUBMISSION OF AN APPLICATION FOR A
4 LICENSE BY A PARTY. NO INVESTIGATION MAY CONTINUE SUBSEQUENT TO
5 THE GRANT OF A LICENSE, THE DENIAL OF A LICENSE OR THE
6 WITHDRAWAL OF A LICENSE APPLICATION.
7 (B) AUTHORITY.--ENFORCEMENT AGENTS ARE EMPOWERED TO BE PEACE
8 OFFICERS AND SHALL HAVE POLICE POWER AND AUTHORITY THROUGHOUT
9 THIS COMMONWEALTH TO ARREST, ON VIEW OR UNDER WARRANT, A PERSON
10 TAMPERING WITH VIDEO GAMING MACHINES, ATTEMPTING OR CONSPIRING
11 TO MANIPULATE THE OUTCOME OR THE PAYOFF OF A VIDEO GAMING
12 MACHINE OR MANIPULATING THE OUTCOME OR PAYOFF OF A VIDEO GAMING
13 MACHINE BY PHYSICAL TAMPERING OR THROUGH THE INTERFERENCE OF THE
14 LAWFUL AND PROPER FUNCTIONING OF THE MECHANISM.
15 (C) INVESTIGATION AND REPORT.--ENFORCEMENT AGENTS MAY
16 INVESTIGATE ALLEGED ILLEGAL ACTIVITIES CONCERNING VIDEO GAMING
17 MACHINES AND THEIR OPERATION, MAINTENANCE AND PLACEMENT.
18 FINDINGS SHALL BE REPORTED IN WRITING TO THE DEPARTMENT, WHICH
19 SHALL RELAY SUSPECTED CRIMINAL ACTIVITY OR VIOLATIONS OF THE LAW
20 TO THE APPROPRIATE DISTRICT ATTORNEY FOR PROSECUTION.
21 (D) STATE AND LOCAL POLICE.--IN ADDITION TO ANY OTHER PERSON
22 AUTHORIZED TO ENFORCE THE PROVISIONS OF THIS ACT, THE
23 PENNSYLVANIA STATE POLICE AND POLICE OF ANY MUNICIPALITY SHALL
24 BE EMPOWERED TO ENFORCE THE PROVISIONS OF THIS ACT.
25 SECTION 5. UNLAWFUL USE BY MINORS.
26 (A) MINORS.--NO PERSON UNDER 21 YEARS OF AGE MAY USE OR PLAY
27 THE VIDEO GAMING MACHINES. A MINOR USING OR PLAYING OR
28 ATTEMPTING TO USE OR PLAY A VIDEO GAMING MACHINE COMMITS A
29 SUMMARY OFFENSE AND SHALL, UPON CONVICTION, PAY A FINE NOT IN
30 EXCESS OF $1,000.
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1 (B) LICENSEES.--A LICENSED ESTABLISHMENT WHICH PERMITS A
2 PERSON UNDER 21 YEARS OF AGE TO PLAY OR USE THE VIDEO GAMING
3 MACHINES, WHETHER OR NOT THAT LICENSED ESTABLISHMENT IS ACTUALLY
4 AWARE OF THE MINOR'S AGE, COMMITS A SUMMARY OFFENSE AND SHALL,
5 UPON CONVICTION, PAY A FINE NOT IN EXCESS OF $5,000. THE
6 ESTABLISHMENT OF THE FOLLOWING FACTS BY A PERSON ALLOWING A
7 MINOR TO OPERATE THE VIDEO GAMING MACHINES SHALL CONSTITUTE A
8 DEFENSE TO PROSECUTION UNDER THIS SUBSECTION:
9 (1) THE MINOR FALSELY REPRESENTED IN WRITING THAT THE
10 MINOR WAS 21 YEARS OF AGE OR OVER.
11 (2) THE APPEARANCE OF THE MINOR WAS SUCH THAT AN
12 ORDINARY PERSON OF PRUDENT JUDGMENT WOULD BELIEVE THE MINOR
13 TO BE 21 YEARS OF AGE OR OVER.
14 (3) THE PERMISSION TO OPERATE THE VIDEO GAMING MACHINES
15 WAS MADE IN GOOD FAITH, RELYING UPON WRITTEN REPRESENTATION
16 AND APPEARANCE AND IN THE REASONABLE BELIEF THAT THE MINOR
17 WAS ACTUALLY 21 YEARS OF AGE OR OVER.
18 SECTION 6. DIRECT DISPENSING.
19 A MACHINE MAY NOT DIRECTLY DISPENSE COINS OR CASH.
20 SECTION 7. LOCAL OPTION.
21 (A) PLACEMENT ON BALLOT.--A MAJORITY OF THE VOTERS OF A
22 CITY, TOWN, TOWNSHIP OR BOROUGH SHALL HAVE THE OPTION TO REJECT
23 THE PLACEMENT OF VIDEO GAMING MACHINES IN ITS RESPECTIVE
24 POLITICAL SUBDIVISION WITHIN 180 DAYS FROM THE EFFECTIVE DATE OF
25 THIS ACT IF THE REJECTION IS IN CONFORMITY WITH THE ACT OF JUNE
26 3, 1937 (P.L.1333, NO.320), KNOWN AS THE PENNSYLVANIA ELECTION
27 CODE. THE QUESTION SHALL BE PLACED UPON THE BALLOT OF THAT
28 POLITICAL SUBDIVISION FOR THE NEXT REGULARLY SCHEDULED ELECTION
29 AS A "NO" QUESTION IF 25% OF THE REGISTERED VOTERS OF THAT
30 POLITICAL SUBDIVISION SIGN A PETITION REQUESTING THAT THE
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1 QUESTION BE PUT ON THE BALLOT. THE RESULTS SHALL BE TRANSMITTED
2 TO THE SECRETARY OF THE COMMONWEALTH, WHO SHALL HAVE THE DUTY OF
3 INFORMING THE DEPARTMENT OF THE RESULT.
4 (B) SPECIAL ELECTION.--NO SPECIAL ELECTION SHALL BE HELD TO
5 ANSWER THIS QUESTION. HOWEVER, IF A SPECIAL ELECTION IS HELD TO
6 DECIDE OTHER MATTERS, THIS QUESTION MAY PROPERLY BE PLACED ON
7 THAT BALLOT ALONG WITH THE OTHER MATTERS TO BE DECIDED.
8 SECTION 8. AUTHORITY TO LICENSE.
9 (A) TYPES OF LICENSE.--AFTER APPROVING THE PROPER
10 APPLICATIONS, THE DEPARTMENT MAY ISSUE THE FOLLOWING LICENSES:
11 (1) A MANUFACTURER'S LICENSE MAY BE ISSUED TO A PERSON
12 THAT MANUFACTURES OR ASSEMBLES VIDEO GAMING MACHINES FOR USE
13 IN THIS COMMONWEALTH. THE ANNUAL FEE SHALL BE $25,000.
14 (2) A DISTRIBUTOR'S LICENSE MAY BE ISSUED TO A PERSON
15 THAT BUYS OR SELLS VIDEO GAMING MACHINES IN THIS
16 COMMONWEALTH. THE ANNUAL FEE SHALL BE $10,000.
17 (3) A MACHINE OWNER'S LICENSE MAY BE ISSUED TO A PERSON
18 THAT OWNS, SERVICES AND MAINTAINS VIDEO GAMING MACHINES FOR
19 PLACEMENT IN LICENSED ESTABLISHMENTS. THE ANNUAL FEE SHALL BE
20 $50,000 FOR THE FIRST 100 INDIVIDUAL VIDEO GAMING MACHINE
21 LICENSES. FOR EACH ADDITIONAL VIDEO GAMING MACHINE, THE
22 ANNUAL FEE SHALL BE $500 PER MACHINE.
23 (4) A LICENSED ESTABLISHMENT LICENSE MAY BE ISSUED TO
24 THE OWNER OF A LICENSED ESTABLISHMENT. THE ANNUAL FEE FOR THE
25 LICENSE SHALL BE AS FOLLOWS:
26 (I) FIVE HUNDRED DOLLARS FOR UP TO AND INCLUDING
27 THREE VIDEO GAMING MACHINES.
28 (II) ONE THOUSAND DOLLARS FOR UP TO AND INCLUDING
29 FIVE VIDEO GAMING MACHINES.
30 (III) THREE THOUSAND DOLLARS FOR UP TO AND INCLUDING
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1 TEN VIDEO GAMING MACHINES.
2 (B) REQUIREMENTS.--
3 (1) EVERY VIDEO GAMING MACHINE IN USE SHALL HAVE A
4 MACHINE OWNER'S LICENSE AND A LICENSED LOCATION LICENSE
5 DISPLAYED.
6 (2) FOR A LICENSED ESTABLISHMENT WHICH USES VIDEO GAMING
7 MACHINES, THE MAXIMUM VIDEO GAMING MACHINES ALLOWED SHALL BE
8 TEN. NO VIDEO GAMING MACHINES MAY BE PLACED IN A LICENSED
9 ESTABLISHMENT UNLESS THE OWNER, OR, IN THE CASE OF A CLUB,
10 THE PROPER AUTHORITY OF THE LICENSED ESTABLISHMENT, HAS
11 ENTERED INTO A CONTRACT WITH A MACHINE OWNER FOR THE
12 PLACEMENT OF THE MACHINES FOR A MINIMUM TERM OF ONE YEAR.
13 (C) LICENSEES.--NO PERSON MAY HOLD MORE THAN ONE CLASS OF
14 LICENSE, DIRECTLY OR INDIRECTLY, OR HAVE ANY INTEREST THEREIN.
15 SECTION 9. DISTRIBUTION OF PROCEEDS.
16 (A) MANNER OF DISTRIBUTION.--THE NET PROFIT DERIVED FROM A
17 VIDEO GAMING MACHINE SHALL BE DISTRIBUTED AS FOLLOWS:
18 (1) FORTY PERCENT TO THE MACHINE OWNER.
19 (2) THIRTY PERCENT TO THE LICENSED ESTABLISHMENT WHERE
20 THE MACHINE IS LOCATED.
21 (3) THIRTY PERCENT TO LOCAL GOVERNMENTS TO BE USED FOR
22 PROPERTY TAX RELIEF AS SET FORTH IN SECTION 10.
23 (B) COLLECTION.--NET REVENUES SHALL BE COLLECTED BY THE
24 MACHINE OWNER FOR EACH LICENSED VIDEO GAMING MACHINE.
25 (C) REPORTS.--THE MACHINE OWNER SHALL MAKE A REPORT TO THE
26 COUNTY TREASURER AND THE COMMONWEALTH EACH MONTH WITH THE
27 FOLLOWING INFORMATION:
28 (1) SERIAL NUMBER OF EACH VIDEO GAMING MACHINE
29 TOTALIZER.
30 (2) NAME AND ADDRESS OF PREMISES WHERE MACHINE IS
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1 LOCATED.
2 (3) COMPUTER PRINTOUT OF THE NET REVENUE OF EACH MACHINE
3 TAKEN DIRECTLY FROM TOTALIZER.
4 SECTION 10. LOCAL GOVERNMENT REVENUES.
5 (A) DISTRIBUTION.--THE OWNER OF EACH VIDEO GAMING MACHINE
6 SHALL SEND A MONTHLY REPORT AND THE 30% OF MACHINE NET REVENUES
7 TO THE TREASURER OF THE COUNTY WHERE THE MACHINES ARE LOCATED TO
8 BE DISTRIBUTED WITHIN 30 DAYS AS FOLLOWS:
9 (1) FIFTY PERCENT TO MUNICIPALITIES OTHER THAN COUNTIES.
10 (2) FORTY PERCENT TO SCHOOL DISTRICTS.
11 (3) TEN PERCENT TO COUNTIES.
12 (B) PURPOSE.--IT IS THE INTENT OF THE GENERAL ASSEMBLY THAT
13 THE MONEYS DISTRIBUTED TO THE LOCAL GOVERNMENTS IN THIS SECTION
14 BE USED TO REDUCE PROPERTY TAXES.
15 SECTION 11. CREATION OF ACCOUNT.
16 REVENUES FROM LICENSES AND FINES UNDER THIS ACT SHALL BE
17 PLACED IN A RESTRICTED REVENUE ACCOUNT TO FUND THE OPERATION OF
18 THE DEPARTMENT AS REQUIRED BY THIS ACT, INCLUDING, BUT NOT
19 LIMITED TO, SALARIES AND ADMINISTRATIVE EXPENSES. THE DEPARTMENT
20 SHALL ALLOCATE A MINIMUM OF $100,000 TO BE USED FOR TREATMENT OF
21 COMPULSIVE GAMBLERS BY GAMBLERS ANONYMOUS IN ACCORDANCE WITH
22 REGULATIONS TO BE ADOPTED BY THE DEPARTMENT.
23 SECTION 12. MANUFACTURING, DISTRIBUTION AND SALES.
24 (A) MAKING AND DISTRIBUTION OF MACHINES.--IT SHALL BE LAWFUL
25 FOR ANY PERSON TO ENGAGE IN THE MANUFACTURE, ASSEMBLY AND
26 DISTRIBUTION OF ALL VIDEO GAMING MACHINES AS PROVIDED FOR IN
27 THIS ACT.
28 (B) PERMITTED SALES.--IT SHALL BE LAWFUL FOR ANY PERSON
29 ENGAGED IN THE MANUFACTURE, ASSEMBLY OR DISTRIBUTION OF ANY
30 VIDEO GAMING MACHINE TO SELL OR OFFER TO SELL ANY VIDEO GAMING
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1 MACHINE TO ANY PERSON, FOR USE IN ANY STATE WHERE IN THE USE OF
2 SUCH A TYPE OF VIDEO GAMING MACHINE IS NOT PROHIBITED BY LAW.
3 (C) USE OF PREMISES.--IT SHALL BE LAWFUL FOR ANY PERSON
4 BEING THE OWNER, TENANT, LESSEE OR OCCUPANT OF ANY PREMISES TO
5 USE THE PREMISES OR TO KNOWINGLY PERMIT THE PREMISES TO BE USED
6 FOR THE MANUFACTURE, ASSEMBLY AND DISTRIBUTION OF VIDEO GAMING
7 MACHINES IN ACCORDANCE WITH THE PROVISIONS OF THIS ACT.
8 (D) EXISTING MACHINES.--MACHINES MANUFACTURED PRIOR TO THE
9 EFFECTIVE DATE OF THIS ACT SHALL BE EXEMPT FROM THE PROVISIONS
10 OF THIS ACT RELATING TO MANUFACTURING AND SALES OF VIDEO GAMING
11 MACHINES. THESE MACHINES SHALL BE CONSIDERED TO HAVE BEEN
12 MANUFACTURED, DISTRIBUTED OR SOLD LEGALLY.
13 SECTION 13. PREEMPTION OF LOCAL TAXES AND LICENSE FEES.
14 (A) PREEMPTION.-- VIDEO GAMING MACHINES AND COIN-OPERATED
15 AMUSEMENT MACHINES SHALL BE EXEMPT FROM TAXES LEVIED UNDER THE
16 ACT OF AUGUST 5, 1932 (SP.SESS., P.L.45, NO.45), REFERRED TO AS
17 THE STERLING ACT, OR THE ACT OF DECEMBER 31, 1965 (P.L.1257,
18 NO.511), KNOWN AS THE LOCAL TAX ENABLING ACT.
19 (B) FEES RESTRICTED.--COIN-OPERATED AMUSEMENT GAMES,
20 EXCLUDING VIDEO GAMING MACHINES, MAY BE LICENSED BY LOCAL
21 POLITICAL SUBDIVISIONS FOR A TOTAL UP TO BUT NOT EXCEEDING $50
22 PER MACHINE PER YEAR.
23 SECTION 14. EXEMPTION FROM STATE GAMBLING LAWS.
24 VIDEO GAMING MACHINES SHALL BE EXEMPT FROM STATE GAMBLING
25 LAWS.
26 SECTION 15. EXEMPTION FROM FEDERAL REGULATION.
27 THE GENERAL ASSEMBLY DECLARES THAT THE COMMONWEALTH IS EXEMPT
28 FROM SECTION 2 OF THE GAMBLING DEVICES TRANSPORTATION ACT (64
29 STAT. 1134, 15 U.S.C. § 1172). SHIPMENTS OF VIDEO DEVICES INTO
30 THIS COMMONWEALTH IN COMPLIANCE WITH SECTIONS 3 AND 4 OF THE
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1 GAMBLING DEVICES TRANSPORTATION ACT (64 STAT. 1135, 15 U.S.C. §§
2 1173 AND 1174) SHALL BE DEEMED LEGAL SHIPMENTS INTO THIS
3 COMMONWEALTH.
4 SECTION 16. EFFECTIVE DATE.
5 THIS ACT SHALL TAKE EFFECT IMMEDIATELY.
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