PRIOR PRINTER'S NOS. 259, 470, 1441 PRINTER'S NO. 1634
No. 248 Session of 1991
INTRODUCED BY GIGLIOTTI, DeWEESE, VEON, MURPHY, KOSINSKI,
COWELL, McGEEHAN, PESCI, COHEN, LAUGHLIN, ROBINSON, LaGROTTA,
MICHLOVIC, TIGUE, DALEY, JAMES, CESSAR, DERMODY, ITKIN,
CAPPABIANCA, VAN HORNE, BELARDI, COLAIZZO, KUKOVICH, SALOOM,
JOSEPHS, DeLUCA, TANGRETTI, EVANS, PRESTON, McNALLY,
PISTELLA, LEVDANSKY, WILLIAMS, MELIO, STISH, HARPER,
LESCOVITZ, THOMAS, SCRIMENTI, CARN, WOZNIAK, OLIVER, RAYMOND,
MRKONIC, McHUGH, KRUSZEWSKI, COLAFELLA AND HALUSKA,
FEBRUARY 5, 1991
AS AMENDED ON THIRD CONSIDERATION, HOUSE OF REPRESENTATIVES,
MAY 14, 1991
AN ACT
1 Authorizing limited gambling on excursion boats; imposing a tax
2 on adjusted gross receipts from such gambling; requiring
3 licenses; imposing fees; and providing penalties for
4 violations.
5 TABLE OF CONTENTS
6 Section 1. Short title.
7 Section 2. Definitions.
8 Section 3. Application of act.
9 Section 4. Powers and authority.
10 Section 5. Statement of intent.
11 Section 6. Applications for EXCURSION GAMBLING BOAT operators' <--
12 licenses.
13 Section 7. Occupational, distributor and manufacturer
14 licenses.
15 Section 8. Requirements of prospective licensee; penalty. <--
1 SECTION 8. REQUIREMENTS OF LICENSE APPLICANT. <--
2 Section 9. Terms and conditions of licenses; revocation.
3 Section 10. Bond of operator.
4 Section 11. Wagering; minors prohibited.
5 Section 12. Admission fee; tax; local fees.
6 Section 13. Wagering tax; rate; credit.
7 Section 14. Books and records; reports; audits; supervision.
8 Section 15. Annual report of commission.
9 Section 16. Prohibited activities; penalty.
10 Section 17. Forfeiture of property.
11 Section 18. Report of implementation.
12 Section 19. Commission.
13 SECTION 20. QUALIFICATIONS FOR COMMISSION MEMBERS. <--
14 SECTION 21. DISQUALIFICATION.
15 Section 20 22. Exemption from State gambling laws. <--
16 Section 21 23. Exemption from Federal regulation. <--
17 Section 22 24. Effective date. <--
18 The General Assembly of the Commonwealth of Pennsylvania
19 hereby enacts as follows:
20 Section 1. Short title.
21 This act shall be known and may be cited as the Excursion
22 Boat Gambling Act.
23 Section 2. Definitions.
24 The following words and phrases when used in this act shall
25 have the meanings given to them in this section unless the
26 context clearly indicates otherwise:
27 "Adjusted gross receipts." The gross receipts less winnings
28 paid to wagerers.
29 "Applicant." A person, including an individual, partnership,
30 corporation or association applying for an occupational license
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1 or applying for a license to operate an excursion gambling boat.
2 "Cheat." To alter the selection of criteria which determine
3 the result of a gambling game or the amount or frequency of
4 payment in a gambling game.
5 "Commission." The Excursion Boat Gambling Commission created
6 under this act.
7 "Distributor." A person who sells, markets or otherwise
8 distributes gambling games, devices or implements of gambling
9 which are usable in the lawful conduct of gambling games
10 pursuant to this act to a licensee authorized to conduct
11 gambling games pursuant to this act.
12 "Dock." The location where an excursion gambling boat is
13 continuously docked or where it moors for the purpose of
14 embarking passengers for and disembarking passengers from a
15 gambling excursion.
16 "Excursion gambling boat." A self-propelled excursion boat,
17 having a capacity of at least 200 persons, on which lawful
18 gambling is authorized and licensed as provided in this act.
19 "Excursion season." The months of January through December.
20 "Gambling device." A slot machine or video game of chance.
21 "Gambling game." Includes, but is not limited to, twenty-
22 one, poker, keno layout, dice, slot machine, video game of
23 chance or roulette wheel and any other game as may be authorized
24 by this act.
25 "Gross receipts." The total sums wagered under this act.
26 "Holder of occupational license." A person licensed by the
27 Excursion Boat Gambling Commission to perform an occupation
28 which the commission has identified as requiring a license to
29 engage in excursion boat gambling.
30 "Implements of gambling." Any product, device or component
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1 thereof the use of which directly influences the outcome of a
2 gambling game.
3 "Licensee." A person licensed under this act.
4 "Manufacturer." A person who designs, assembles, fabricates,
5 produces, constructs or otherwise prepares a product or a
6 component part of a product of any implement of gambling usable
7 in the lawful conduct of gambling games pursuant to this act.
8 "MUNICIPALITY." A CITY, BOROUGH, INCORPORATED TOWN OR <--
9 TOWNSHIP, REGARDLESS OF FORM OF GOVERNMENT. THE TERM SHALL NOT
10 INCLUDE COUNTIES.
11 "Operator." A person who is licensed to operate gambling <--
12 games on an excursion gambling boat that he owns.
13 "VALID PETITION." A PETITION SIGNED BY A NUMBER OF ELECTORS <--
14 EQUAL TO AT LEAST 25% OF THE HIGHEST VOTE CAST FOR ANY OFFICE IN
15 THE COUNTY AT THE LAST PRECEDING GENERAL ELECTION.
16 Section 3. Application of act.
17 This act applies only to excursion boat gambling. It does not
18 apply to horse racing, the State lottery, bingo or any other
19 type of gambling.
20 Section 4. Powers and authority.
21 The commission shall have full jurisdiction over and shall
22 supervise all gambling operations governed by this act, and
23 shall have the following powers:
24 (1) To investigate and determine the eligibility of
25 applicants for a license, and to select among competing
26 applicants, the applicant or applicants which best serve the
27 interests of the citizens of this Commonwealth.
28 (2) To license operators, to identify occupations within
29 the excursion gambling boat operations which require
30 licensing, to adopt standards for licensing the occupations,
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1 and to establish fees for the occupational licenses. The fees
2 shall be paid to the commission and deposited in a special
3 account in the General Fund which is hereby established. All
4 revenue received by the commission from license fees and
5 admission fees shall be deposited in the special account in
6 the General Fund. THE COMMISSION SHALL ALLOCATE A MINIMUM OF <--
7 $1,000,000 ANNUALLY TO BE USED FOR THE TREATMENT OF
8 COMPULSIVE BEHAVIORS IN ACCORDANCE WITH REGULATIONS ADOPTED
9 BY THE COMMISSION. THE FIRST SUCH ALLOCATION SHALL BE MADE IN
10 THE FIRST FISCAL YEAR COMMENCING ONE YEAR FOLLOWING THE
11 EFFECTIVE DATE OF THIS ACT.
12 (3) To adopt standards under which all excursion
13 gambling boat operations shall be held and standards for the
14 facilities within which the gambling operations shall be
15 held. The commission may authorize the operation of gambling
16 games on an excursion gambling boat which is also licensed to
17 sell or serve alcoholic beverages, wine or beer.
18 (4) To regulate the wagering structure for gambling
19 excursions, including providing a maximum wager of $5 per
20 hand or play and a maximum loss of $200 per individual player
21 per gambling excursion.
22 (5) To enter the office, excursion gambling boat,
23 facilities or other places of business of a licensee to
24 determine compliance with this act.
25 (6) To investigate alleged violations of this act or
26 commission rules, regulations, orders or decisions, and to
27 take appropriate disciplinary action against a licensee or a
28 holder of an occupational license for a violation, or
29 institute appropriate legal action for enforcement, or both <--
30 REFER TO THE APPROPRIATE LAW ENFORCEMENT AGENCY. <--
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1 (7) To require a licensee, an employee of a licensee or
2 holder of an occupational license to remove a person
3 violating a provision of this act or the commission rules,
4 orders, final orders or other person deemed to be undesirable
5 from the excursion gambling boat facilities.
6 (8) To require the removal of a licensee, an employee of
7 a licensee or a holder of an occupational license for a
8 violation of this act or a commission rule, regulation, order
9 or decision or for engaging in a fraudulent practice.
10 (9) To require an operator to file an annual balance
11 sheet and profit and loss statement pertaining to the
12 operator's gambling activities in this Commonwealth, together
13 with a list of the stockholders or other persons having any
14 equity or beneficial interest in the gambling activities of
15 each operator.
16 (10) To issue subpoenas for the attendance of witnesses
17 and subpoenas duces tecum for the production of books,
18 records and other pertinent documents and to administer oaths
19 and affirmations to witnesses.
20 (11) To keep accurate and complete records of its
21 proceedings and to certify the records as may be appropriate.
22 (12) To assess a fine and revoke or suspend licenses.
23 (13) To take any other action as may be reasonable or
24 appropriate to enforce this act and commission rules,
25 regulations, orders and decisions.
26 (14) To require all licensees of gambling game
27 operations to utilize a cashless wagering system whereby all
28 players' money is converted to tokens, electronic cards or
29 chips which can be used only for wagering on the excursion
30 gambling boat.
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1 (15) To ensure that the gambling games authorized under
2 this act are conducted fairly. No gambling device shall be
3 set to pay out less than 80% of all wagers.
4 (16) To promulgate such regulations as may be necessary
5 to implement this act.
6 (17) TO APPOINT AN EXECUTIVE DIRECTOR TO HOLD OFFICE AT <--
7 ITS PLEASURE. THE EXECUTIVE DIRECTOR SHALL HAVE POWERS AND
8 DUTIES AS THE COMMISSION SHALL PRESCRIBE AND SHALL RECEIVE
9 COMPENSATION AS THE COMMISSION SHALL DETERMINE. THE EXECUTIVE
10 DIRECTOR SHALL HAVE THE AUTHORITY TO EMPLOY PERSONNEL
11 NECESSARY TO CARRY OUT THE DUTIES OF THE OFFICE. NO EXECUTIVE
12 DIRECTOR SHALL HOLD OFFICE UNLESS HE HAS A MINIMUM OF TEN
13 YEARS ADMINISTRATIVE EXPERIENCE. THE PENNSYLVANIA STATE
14 POLICE MUST ALSO CONDUCT A THOROUGH BACKGROUND CHECK ON THE
15 INDIVIDUALS UNDER CONSIDERATION BY THE COMMISSION FOR THE
16 POSITION OF EXECUTIVE DIRECTOR.
17 (18) TO REQUIRE ANY APPLICANT FOR THE POSITION OF
18 EXECUTIVE DIRECTOR OR ANY OTHER POSITION FOR WHICH A LICENSE
19 IS REQUIRED UNDER THIS ACT, TO PAY THE COST OF A CRIMINAL
20 HISTORY RECORD CHECK, AS REQUIRED IN 18 PA.C.S. § 9151
21 (RELATING TO RIGHT TO ACCESS AND REVIEW) AND A RECORD CHECK
22 CONDUCTED BY THE FEDERAL BUREAU OF INVESTIGATIONS.
23 (19) TO USE FUNDS DERIVED FROM THE SPECIAL ACCOUNT AS
24 PROVIDED FOR IN THIS SECTION TO ACQUIRE SUCH FURNISHING,
25 EQUIPMENT, SUPPLIES, STATIONERY, BOOKS, MOTOR VEHICLES AND
26 ANY ITEMS OR EQUIPMENT IT MAY DEEM NECESSARY OR DESIRABLE IN
27 CARRYING OUT ITS DUTIES AS PROVIDED FOR IN THIS ACT.
28 (20) TO INCUR SUCH OTHER EXPENSES, WITHIN THE LIMITS OF
29 AVAILABLE FUNDS, AS IT MAY DEEM NECESSARY.
30 Section 5. Statement of intent.
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1 (a) General rule.--A person who intends to apply for a
2 manufacturer's, distributor's or excursion gambling boat
3 operator's license, must first file a statement of intent with
4 the commission. The statement shall include:
5 (1) the name and address of the person, partnership or
6 corporation which intends to file an application; and
7 (2) the type of license that will be applied for.
8 (b) Fees.--
9 (1) The filing fees which must accompany the statement
10 of intent shall be as follows:
11 (i) For manufacturers and distributors $2,500.
12 (ii) For operators $25,000.
13 (2) The filing fee shall be applied to the applicant's
14 license fee if a license is subsequently approved by the
15 commission.
16 (3) The full fee shall be refunded if the subsequent
17 application is denied by the commission.
18 (4) An applicant may also withdraw the statement of
19 intent at any time and shall be entitled to a full refund of
20 the fee.
21 (c) When not required.--The statement of intent is not
22 required for renewal of a license nor is it required of an
23 applicant for an occupational license.
24 (d) Waiver.--The commission may waive the requirement of a
25 statement of intent 12 months or more after the effective date
26 of this act if the commission certifies it has sufficient
27 finances on hand to meet the budget requirements of this act.
28 The certification shall be published in the Pennsylvania
29 Bulletin.
30 Section 6. Applications for EXCURSION GAMBLING BOAT operators' <--
19910H0248B1634 - 8 -
1 licenses.
2 (a) General rule.--A person may apply to the commission for
3 a license to operate gambling games on an excursion gambling <--
4 boat. The application shall be filed with the administrator of
5 the commission at least 90 days before the first day of the next
6 excursion season, shall identify the excursion gambling boat
7 upon which gambling games will be authorized, shall specify the
8 exact location where the excursion gambling boat will be docked,
9 and shall be in a form and contain such information as the
10 commission prescribes.
11 (b) Initial license fee.--The initial license fee shall be
12 $50,000.
13 (c) Annual license fee.--The annual license fee to operate
14 gambling games on an excursion gambling boat shall be based on <--
15 the passenger-carrying capacity, including crew, for which the
16 excursion gambling boat is registered. The initial annual fee
17 shall be $25 per person-capacity and shall be subject to change
18 pursuant to section 11(c).
19 Section 7. Occupational, distributor and manufacturer licenses.
20 (a) License required.--A manufacturer or distributor of
21 gambling games or implements of gambling and any person who will
22 be employed on a excursion gambling boat in an occupation listed <--
23 DESIGNATED by the commission shall apply for a license upon a <--
24 form prescribed by the commission annually before January 1, and
25 shall submit the appropriate license fee. An applicant A <--
26 PROSPECTIVE LICENSEE shall provide such information as the
27 commission requires. The license fee for a distributor is
28 $10,000, and the license fee for a manufacturer is $10,000. The
29 license fee for an occupational license shall be established by
30 the commission. The license fees shall be credited to the
19910H0248B1634 - 9 -
1 special account provided for in section 4(2).
2 (b) Limitations on operators.--
3 (1) An operator shall acquire PURCHASE all gambling <--
4 games or implements of gambling from a distributor OR <--
5 MANUFACTURER licensed pursuant to this act. An operator shall
6 not sell, LEASE or give gambling games or implements of <--
7 gambling to another licensee.
8 (2) An operator shall not be a manufacturer or
9 distributor of gambling games or implements of gambling.
10 (3) A manufacturer shall not be a distributor or an
11 operator.
12 (4) A distributor shall not be a manufacturer or an
13 operator.
14 (c) Suspension or revocation of license.--The commission may
15 suspend or revoke the license of a distributor or manufacturer
16 for a violation of this act or a rule adopted pursuant to this
17 act committed by the distributor or manufacturer or an officer,
18 director, employee or agent of the manufacturer or distributor.
19 (d) Procedures.--A manufacturer or distributor of gambling
20 games who has been granted a license under this section shall
21 have a representative within this Commonwealth to take delivery
22 of gambling games or implements of gambling prior to delivery to
23 an operator. The manufacturer or distributor shall provide the
24 commission with a copy of the invoice showing the items shipped
25 and a copy of the bill of lading. When received, the gambling
26 games or implements of gambling shall be stored in a public
27 warehouse in this Commonwealth until delivered to the operator
28 or, after delivery is complete, the shipment may be transferred
29 to an operator.
30 Section 8. Requirements of prospective licensee; penalty. <--
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1 (a) Application form.--A person shall not be issued a
2 license to conduct gambling games on an excursion gambling boat
3 under this act, an occupational license, a distributor license
4 or a manufacturer license unless the person has completed and
5 signed an application on the form prescribed and published by
6 the commission.
7 (1) The application shall include the full name,
8 residence, date of birth and other personal identifying
9 information of the applicant which the commission deems
10 necessary. The application shall also include whether the
11 applicant has any of the following:
12 (i) A record of conviction of a felony.
13 (ii) An addiction to alcohol or a controlled
14 substance.
15 (iii) A history of mental illness.
16 (2) A prospective licensee shall submit pictures,
17 fingerprints and descriptions of physical characteristics to
18 the commission in the manner prescribed on the application
19 forms.
20 (3) It is the burden of the prospective licensee to show
21 by a preponderance of the evidence his suitability as to
22 character, experience and adequacy of funds. If a prospective
23 licensee has a record of any of the items set forth in
24 subsection (a)(1), it may be grounds for denial of a license
25 under this act.
26 SECTION 8. REQUIREMENTS OF LICENSE APPLICANT. <--
27 (A) INFORMATION.--AN APPLICANT TO BECOME A LICENSEE, OTHER
28 THAN A HOLDER OF AN OCCUPATIONAL LICENSE, MUST PRODUCE
29 INFORMATION, DOCUMENTATION AND ASSURANCES CONCERNING THE
30 FOLLOWING:
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1 (1) THE FULL NAME, RESIDENCE, DATE OF BIRTH,
2 FINGERPRINTS AND OTHER PERSONAL IDENTIFYING INFORMATION AS
3 THE COMMISSION DEEMS NECESSARY.
4 (2) A COPY OF THE APPLICANT'S CRIMINAL HISTORY RECORD
5 INFORMATION PURSUANT TO 18 PA.C.S. CH. 91 (RELATING TO
6 CRIMINAL HISTORY RECORD INFORMATION). THE APPLICANT MUST ALSO
7 INCLUDE COPIES OF CRIMINAL HISTORY RECORD INFORMATION FROM
8 ANY OTHER JURISDICTION WHERE THE APPLICANT RESIDED OR HAD A
9 PRINCIPAL PLACE OF BUSINESS DURING A TEN-YEAR PERIOD
10 IMMEDIATELY PRECEDING THE FILING OF THE APPLICATION. WHERE NO
11 SUCH INFORMATION EXISTS, THE APPLICANT MUST SUBMIT A LETTER
12 SO INDICATING FROM THE RESPECTIVE LAW ENFORCEMENT AGENCY.
13 (3) INFORMATION, DOCUMENTATION AND ASSURANCES CONCERNING
14 FINANCIAL BACKGROUND AND RESOURCES AS MAY BE REQUIRED TO
15 ESTABLISH BY CLEAR AND CONVINCING EVIDENCE THE FINANCIAL
16 STABILITY, INTEGRITY AND RESPONSIBILITY OF THE APPLICANT.
17 INFORMATION UNDER THIS PARAGRAPH INCLUDES, BUT IS NOT LIMITED
18 TO, BANK REFERENCES, BUSINESS AND PERSONAL INCOME AND
19 DISBURSEMENT SCHEDULES, TAX RETURNS AND OTHER REPORTS FILED
20 WITH GOVERNMENTAL AGENCIES AND BUSINESS AND PERSONAL
21 ACCOUNTING AND CHECK RECORDS AND LEDGERS. IN ADDITION, THE
22 APPLICANT MUST AUTHORIZE IN WRITING THE EXAMINATION OF ALL
23 BANK ACCOUNTS AND RECORDS AS DEEMED NECESSARY BY THE
24 COMMISSION. IF A NONPUBLICLY TRADED CORPORATION HAS ANY
25 EQUITABLE INTEREST IN THE APPLICANT, THIS PARAGRAPH APPLIES
26 TO ALL STOCKHOLDERS OF THE CORPORATION.
27 (4) INFORMATION, DOCUMENTATION AND ASSURANCES AS
28 NECESSARY TO ESTABLISH BY CLEAR AND CONVINCING EVIDENCE THE
29 INTEGRITY OF ALL FINANCIAL BACKERS; INVESTORS; MORTGAGES;
30 BONDHOLDERS; AND HOLDERS OF INDENTURES, NOTES OR OTHER
19910H0248B1634 - 12 -
1 EVIDENCE OF INDEBTEDNESS, EITHER IN EFFECT OR PROPOSED, WHICH
2 BEARS ANY RELATION TO THE EXCURSION GAMBLING BOAT PROPOSAL
3 SUBMITTED BY THE APPLICANT. THE INTEGRITY OF FINANCIAL
4 SOURCES SHALL BE JUDGED UPON THE SAME STANDARDS AS THE
5 APPLICANT. THE APPLICANT MUST PRODUCE WHATEVER INFORMATION,
6 DOCUMENTATION OR ASSURANCES REQUIRED TO ESTABLISH BY CLEAR
7 AND CONVINCING EVIDENCE THE ADEQUACY OF FINANCIAL RESOURCES,
8 BOTH AS TO THE COMPLETION OF THE EXCURSION GAMBLING BOAT AND
9 THE OPERATION OF THE EXCURSION GAMBLING BOAT.
10 (5) INFORMATION, DOCUMENTATION AND ASSURANCES REQUIRED
11 TO ESTABLISH BY CLEAR AND CONVINCING EVIDENCE THE APPLICANT'S
12 GOOD CHARACTER, HONESTY AND INTEGRITY. INFORMATION UNDER THIS
13 PARAGRAPH INCLUDES, WITHOUT LIMITATION, INFORMATION
14 PERTAINING TO FAMILY, HABITS, CHARACTER, REPUTATION, CRIMINAL
15 AND ARREST RECORD, BUSINESS ACTIVITIES, FINANCIAL AFFAIRS,
16 BUSINESS ASSOCIATES, PROFESSIONAL ASSOCIATES AND PERSONAL
17 ASSOCIATES, COVERING AT LEAST THE TEN-YEAR PERIOD IMMEDIATELY
18 PRECEDING THE FILING OF THE APPLICATION. THE APPLICANT MUST
19 NOTIFY THE COMMISSION OF ANY CIVIL JUDGMENTS OBTAINED AGAINST
20 THE APPLICANT PERTAINING TO FEDERAL, STATE OR FOREIGN
21 ANTITRUST OR SECURITY REGULATION LAWS. IF THE APPLICANT HAS
22 CONDUCTED GAMING OPERATIONS IN A JURISDICTION WHICH PERMITS
23 SUCH ACTIVITY, THE APPLICANT MUST PRODUCE LETTERS OF
24 REFERENCE FROM THE GAMING OR CASINO ENFORCEMENT OR CONTROL
25 AGENCY WHICH SPECIFY THE EXPERIENCES OF THE AGENCY WITH THE
26 APPLICANT, THE APPLICANT'S ASSOCIATES AND THE APPLICANT'S
27 GAMING OPERATION. IF THE LETTERS ARE NOT RECEIVED WITHIN 60
28 DAYS OF REQUEST, THE APPLICANT MAY SUBMIT A STATEMENT UNDER
29 OATH THAT, DURING THE PERIOD SUCH ACTIVITIES WERE CONDUCTED,
30 THE APPLICANT WAS IN GOOD STANDING WITH THE APPROPRIATE
19910H0248B1634 - 13 -
1 GAMING OR CASINO ENFORCEMENT OR CONTROL AGENCY.
2 (6) INFORMATION, DOCUMENTATION AND ASSURANCES AS
3 REQUIRED TO ESTABLISH BY CLEAR AND CONVINCING EVIDENCE THAT
4 THE APPLICANT HAS SUFFICIENT BUSINESS ABILITY AND EXCURSION
5 GAMBLING BOAT EXPERIENCE AS TO SUPPORT THE LIKELIHOOD OF
6 CREATION AND MAINTENANCE OF A SUCCESSFUL, EFFICIENT EXCURSION
7 GAMBLING BOAT OPERATION. THE APPLICANT MUST PRODUCE THE NAMES
8 OF ALL PROPOSED EXCURSION GAMBLING BOAT EMPLOYEES AS THEY
9 BECOME KNOWN, A DESCRIPTION OF THEIR RESPECTIVE OR PROPOSED
10 RESPONSIBILITIES AND A FULL DESCRIPTION OF SECURITY SYSTEMS
11 AND MANAGEMENT CONTROLS PROPOSED FOR THE EXCURSION GAMBLING
12 BOAT AND RELATED FACILITIES. THIS PARAGRAPH SHALL NOT APPLY
13 TO APPLICANTS FOR A DISTRIBUTOR'S LICENSE OR A MANUFACTURER'S
14 LICENSE.
15 (B) APPLICANT DISQUALIFICATION CRITERIA.--THE COMMISSION
16 SHALL DENY A LICENSE TO ANY APPLICANT WHO IS DISQUALIFIED ON THE
17 BASIS OF ANY OF THE FOLLOWING CRITERIA:
18 (1) FAILURE OF THE APPLICANT TO PROVE BY CLEAR AND
19 CONVINCING EVIDENCE THAT THE APPLICANT IS QUALIFIED IN
20 ACCORDANCE WITH THE PROVISIONS OF THIS ACT.
21 (2) FAILURE OF THE APPLICANT TO PROVIDE INFORMATION,
22 DOCUMENTATION AND ASSURANCES REQUIRED BY THIS ACT OR
23 REQUESTED BY THE COMMISSION; FAILURE OF THE APPLICANT TO
24 REVEAL ANY FACT WHICH IS MATERIAL TO QUALIFICATION; OR
25 SUPPLYING INFORMATION WHICH IS UNTRUE OR MISLEADING AS TO A
26 MATERIAL FACT PERTAINING TO THE QUALIFICATION CRITERIA.
27 (3) THE APPLICANT OR ANY PERSON REQUIRED TO BE QUALIFIED
28 UNDER THIS ACT AS A CONDITION OF LICENSURE HAS BEEN CONVICTED
29 OF, OR PLEADED GUILTY OR NO CONTEST TO, ANY OF THE FOLLOWING
30 OFFENSES OR THEIR EQUIVALENT IN ANOTHER JURISDICTION:
19910H0248B1634 - 14 -
1 SECTION 113(A)(14), (30), (36) OR (37) OF THE ACT OF
2 APRIL 14, 1972 (P.L.233, NO.64), KNOWN AS THE CONTROLLED
3 SUBSTANCE, DRUG, DEVICE AND COSMETIC ACT.
4 18 PA.C.S. § 911 (RELATING TO CORRUPT ORGANIZATIONS).
5 18 PA.C.S. § 3301 (RELATING TO ARSON AND RELATED
6 OFFENSES).
7 18 PA.C.S. § 3302 (RELATING TO CAUSING OR RISKING
8 CATASTROPHE).
9 18 PA.C.S. § 3502 (RELATING TO BURGLARY).
10 18 PA.C.S. § 3701 (RELATING TO ROBBERY).
11 18 PA.C.S. § 3921 (RELATING TO THEFT BY UNLAWFUL
12 TAKING OR DISPOSITION).
13 18 PA.C.S. § 3922 (RELATING TO THEFT BY DECEPTION).
14 18 PA.C.S. § 3923 (RELATING TO THEFT BY EXTORTION).
15 18 PA.C.S. § 3924 (RELATING TO THEFT OF PROPERTY
16 LOST, MISLAID, OR DELIVERED BY MISTAKE).
17 18 PA.C.S. § 3925 (RELATING TO RECEIVING STOLEN
18 PROPERTY).
19 18 PA.C.S. § 3926 (RELATING TO THEFT OF SERVICES).
20 18 PA.C.S. § 3927 (RELATING TO THEFT BY FAILURE TO
21 MAKE REQUIRED DISPOSITION OF FUNDS RECEIVED).
22 18 PA.C.S. § 3930 (RELATING TO THEFT OF TRADE
23 SECRETS).
24 18 PA.C.S. § 3932 (RELATING TO THEFT OF LEASED
25 PROPERTY).
26 18 PA.C.S. § 3933 (RELATING TO UNLAWFUL USE OF
27 COMPUTER).
28 18 PA.C.S. § 4101 (RELATING TO FORGERY).
29 18 PA.C.S. § 4104 (RELATING TO TAMPERING WITH RECORDS
30 OR IDENTIFICATION).
19910H0248B1634 - 15 -
1 18 PA.C.S. § 4108 (RELATING TO COMMERCIAL BRIBERY AND
2 BREACH OF DUTY TO ACT DISINTERESTEDLY).
3 18 PA.C.S. § 4112 (RELATING TO RECEIVING DEPOSITS IN
4 A FAILING FINANCIAL INSTITUTION).
5 18 PA.C.S. § 4302 (RELATING TO INCEST).
6 18 PA.C.S. § 4701 (RELATING TO BRIBERY IN OFFICIAL
7 AND POLITICAL MATTERS).
8 18 PA.C.S. § 4702 (RELATING TO THREATS AND OTHER
9 IMPROPER INFLUENCE IN OFFICIAL AND POLITICAL MATTERS).
10 18 PA.C.S. § 4902 (RELATING TO PERJURY).
11 18 PA.C.S. § 4911 (RELATING TO TAMPERING WITH PUBLIC
12 RECORDS OR INFORMATION).
13 18 PA.C.S. § 5111 (RELATING TO DEALING IN PROCEEDS OF
14 UNLAWFUL ACTIVITIES).
15 18 PA.C.S. § 5301 (RELATING TO OFFICIAL OPPRESSION).
16 18 PA.C.S. § 5302 (RELATING TO SPECULATING OR
17 WAGERING ON OFFICIAL ACTION OR INFORMATION).
18 18 PA.C.S. § 5512 (RELATING TO LOTTERIES, ETC.).
19 18 PA.C.S. § 5513 (RELATING TO GAMBLING DEVICES,
20 GAMBLING, ETC.).
21 18 PA.C.S. § 6312 (RELATING TO SEXUAL ABUSE OF
22 CHILDREN).
23 18 PA.C.S. § 6314 (RELATING TO SENTENCING AND
24 PENALTIES FOR TRAFFICKING DRUGS TO MINORS).
25 (4) THE APPLICANT OR ANY PERSON REQUIRED TO BE QUALIFIED
26 UNDER THIS ACT AS A CONDITION OF LICENSURE HAS BEEN CONVICTED
27 OF, OR PLEADED GUILTY OR NO CONTEST TO, ANY OTHER OFFENSE
28 UNDER PRESENT FEDERAL OR STATE LAW WHICH INDICATES THAT
29 LICENSURE OF THE APPLICANT WOULD BE INIMICAL TO THE POLICY OF
30 THIS ACT AND TO EXCURSION GAMBLING BOAT OPERATIONS. THE
19910H0248B1634 - 16 -
1 AUTOMATIC DISQUALIFICATION PROVISIONS OF THIS PARAGRAPH SHALL
2 NOT APPLY WITH REGARD TO:
3 (I) ANY CONVICTION WHICH DID NOT OCCUR WITHIN THE
4 TEN-YEAR PERIOD IMMEDIATELY PRECEDING APPLICATION FOR
5 LICENSURE AND WHICH THE APPLICANT DEMONSTRATES BY CLEAR
6 AND CONVINCING EVIDENCE DOES NOT JUSTIFY AUTOMATIC
7 DISQUALIFICATION PURSUANT TO THIS SUBSECTION; OR
8 (II) ANY CONVICTION OR PLEA WHICH HAS BEEN THE
9 SUBJECT OF A JUDICIAL ORDER OF EXPUNGEMENT OR SEALING.
10 (5) CURRENT PROSECUTING OR PENDING CHARGES IN ANY
11 JURISDICTION OF THE APPLICANT OR OF ANY PERSON WHO IS
12 REQUIRED TO BE QUALIFIED UNDER THIS ACT AS A CONDITION OF
13 LICENSURE FOR ANY OF THE OFFENSES ENUMERATED IN PARAGRAPH
14 (3). AT THE REQUEST OF THE APPLICANT OR THE PERSON CHARGED,
15 THE COMMISSION SHALL DEFER DECISION UPON SUCH APPLICATION
16 DURING THE PENDENCY OF SUCH CHARGE.
17 (6) THE PURSUIT, BY THE APPLICANT OR ANY PERSON WHO IS
18 REQUIRED TO BE QUALIFIED UNDER THIS ACT AS A CONDITION OF
19 LICENSURE, OF ECONOMIC GAIN IN AN OCCUPATIONAL MANNER OR
20 CONTEXT WHICH IS IN VIOLATION OF THE CRIMINAL OR CIVIL PUBLIC
21 POLICIES OF THIS COMMONWEALTH, IF SUCH PURSUIT CREATES A
22 REASONABLE BELIEF THAT THE PARTICIPATION OF THE PERSON IN
23 EXCURSION GAMBLING BOAT OPERATIONS WOULD BE INIMICAL TO THE
24 POLICIES OF THIS ACT OR TO LEGALIZED GAMING IN THIS
25 COMMONWEALTH. FOR THE PURPOSES OF THIS PARAGRAPH,
26 "OCCUPATIONAL MANNER" OR "CONTEXT" SHALL BE DEFINED AS THE
27 SYSTEMATIC PLANNING, ADMINISTRATION, MANAGEMENT OR EXECUTION
28 OF AN ACTIVITY FOR FINANCIAL GAIN.
29 (7) THE COMMISSION BY THE APPLICANT, OR ANY PERSON WHO
30 IS REQUIRED TO BE QUALIFIED UNDER THIS ACT AS A CONDITION OF
19910H0248B1634 - 17 -
1 LICENSURE, OF ANY ACT WHICH WOULD CONSTITUTE AN OFFENSE UNDER
2 PARAGRAPH (3), EVEN IF SUCH CONDUCT HAS NOT OR MAY NOT BE
3 PROSECUTED UNDER THE CRIMINAL LAWS OF THIS COMMONWEALTH.
4 (8) THE APPLICANT IS A CORPORATION AND 10% OF THE STOCK
5 OF THE CORPORATION IS SUBJECT TO A CONTRACT OR OPTION TO
6 PURCHASE AT ANY TIME DURING THE PERIOD FOR WHICH THE LICENSE
7 IS TO BE ISSUED, UNLESS THE CONTRACT OR OPTION WAS DISCLOSED
8 TO THE COMMISSION AND THE COMMISSION APPROVED THE SALE OR
9 TRANSFER DURING THE PERIOD OF THE LICENSE.
10 (9) THE APPLICANT HAS TWO OTHER LICENSES ISSUED UNDER
11 THIS ACT.
12 (b) (C) Additional fee.--The commission shall charge the <--
13 prospective licensee a fee to defray the costs associated with
14 the search and classification of fingerprints and background
15 investigations. This fee is in addition to any other license fee
16 charged by the commission. The commission shall reimburse the
17 Pennsylvania State Police for any costs or expenses connected
18 with the search and classification of fingerprints and
19 background investigations.
20 (c) (D) Background investigation.--Before a license is <--
21 granted, the Pennsylvania State Police shall conduct a thorough
22 background investigation of the applicant for a license to
23 operate a gambling game operation on an excursion gambling boat. <--
24 THE PENNSYLVANIA STATE POLICE SHALL SUBMIT THE FINGERPRINTS OF <--
25 THE APPLICANT TO THE FEDERAL BUREAU OF INVESTIGATION FOR A
26 BACKGROUND CHECK. The applicant shall provide information on a
27 form as required by the Pennsylvania State Police.
28 (d) (E) Tourism.--Before a license is granted, an operator <--
29 of an excursion gambling boat shall work with the Department of
30 Commerce to promote tourism in this Commonwealth. Tourism
19910H0248B1634 - 18 -
1 information from local civic and private persons may be
2 submitted for dissemination.
3 (e) Offense.--A person who knowingly makes a false statement <--
4 on the application commits a misdemeanor of the second degree.
5 (F) OFFENSE.--A PERSON WHO KNOWINGLY MAKES A FALSE STATEMENT <--
6 IN CONNECTION WITH THE APPLICATION COMMITS A VIOLATION OF 18
7 PA.C.S. § 4903 (RELATING TO FALSE SWEARING).
8 (f) (G) Warrantless search.--The operator or a holder of an <--
9 occupational license shall consent to the search BY AN AGENT OF <--
10 THE COMMISSION OR LAW ENFORCEMENT AGENCY without a warrant of
11 the operator or holder's person, personal property and effects,
12 and premises which are located within the area of the excursion
13 gambling boat where gambling is permitted for criminal
14 violations of this chapter or violations of rules, regulations,
15 orders or decisions of the commission.
16 Section 9. Terms and conditions of licenses; revocation.
17 (a) Issuance.--If the commission is satisfied that this act
18 and its rules adopted under this act applicable to licensees
19 have been or will be complied with, the commission shall issue
20 the appropriate license. The commission shall decide the number,
21 location and type of excursion gambling boats for operation on
22 the rivers, lakes and reservoirs of this Commonwealth. The
23 license shall set forth the name of the licensee, the type of
24 license granted, the place where the excursion gambling boats
25 will operate and dock, and the time and number of days during
26 the excursion season when gambling may be conducted by the
27 licensee.
28 (b) Conditions.--A license shall be granted to an applicant
29 only upon the express conditions that:
30 (1) The applicant shall not, by lease, contract,
19910H0248B1634 - 19 -
1 understanding or arrangement of any kind, grant, assign or
2 turn over to any person the operation of gambling games on an <--
3 excursion gambling boat licensed under this section or the
4 operation of the system of wagering described in section 11.
5 This section does not prohibit a management contract approved
6 by the commission.
7 (2) The applicant shall not in any manner permit a
8 person other than the operator to have a share, percentage or
9 proportion of the money received for admissions to the
10 excursion gambling boat.
11 (c) Pennsylvania resources, goods and services.--The
12 commission shall require that an applicant utilize Pennsylvania
13 resources, goods and services in the operation of an excursion
14 gambling boat where feasible and obtainable. The commission
15 shall develop standards to assure that a substantial amount of
16 all resources and goods used in the operation of an excursion
17 gambling boat come from Pennsylvania and that a substantial
18 amount of all services and entertainment be provided by
19 Pennsylvanians. The requirement of this subsection shall not
20 limit hiring for essential crew positions related to the
21 gambling operation, vessel operation or passenger safety.
22 (d) Conditions.--The commission shall, as a condition of
23 granting a license, require an applicant to provide written
24 documentation that, on each excursion gambling boat:
25 (1) No more than 50% of the square footage shall be used
26 for gambling activity.
27 (2) The applicant makes every effort to ensure that a
28 substantial number of the staff and entertainers employed are
29 residents of this Commonwealth.
30 (3) A section is reserved for promotion and sale of
19910H0248B1634 - 20 -
1 arts, crafts and gifts native to and made in this
2 Commonwealth.
3 (e) Wages.--All employees shall be paid at least 25% above
4 the Federal minimum wage level.
5 (f) When licenses not to be granted.--A license shall not be <--
6 granted if there is substantial evidence that any of the
7 following apply:
8 (1) The applicant has been suspended from operating a
9 game of chance or gambling operation in another jurisdiction
10 by a board or commission of that jurisdiction.
11 (2) The applicant has not demonstrated financial
12 responsibility sufficient to meet adequately the requirements
13 of the enterprise proposed.
14 (3) The applicant is not the true owner of the
15 enterprise proposed.
16 (4) The applicant is not the sole owner, and other
17 persons have ownership in the enterprise, which fact has not
18 been disclosed.
19 (5) The applicant is a corporation and 10% of the stock
20 of the corporation is subject to a contract or option to
21 purchase at any time during the period for which the license
22 is to be issued, unless the contract or option was disclosed
23 to the commission and the commission approved the sale or
24 transfer during the period of the license.
25 (6) The applicant has knowingly made a false statement
26 of a material fact to the commission.
27 (7) The applicant has failed to meet a valid, bona fide
28 monetary obligation in connection with an excursion gambling
29 boat.
30 (8) There is substantial evidence that the applicant is
19910H0248B1634 - 21 -
1 not of good repute and moral character.
2 (9) The applicant has two other licenses issued under
3 this act.
4 (g) (F) Loans prohibited.--An operator shall not loan to any <--
5 person money or any other thing of value for the purpose of
6 permitting that person to wager on any game of chance GAMBLING <--
7 GAME. This does not prohibit credit card or debit card
8 transactions or cashing of checks in the ordinary course of
9 business.
10 (h) (G) Referendum.-- <--
11 (1) A license to conduct gambling games on an excursion
12 gambling boat in a county shall be issued only if the county
13 electorate approves the conduct of the gambling games as
14 provided in this subsection. The board of county
15 commissioners, UPON ADOPTION OF A RESOLUTION, OR upon receipt <--
16 of a valid petition, shall direct the county board of
17 elections to submit to the qualified voters of the county a
18 proposition to approve or disapprove the conduct of gambling
19 games on an excursion gambling boat in the county. The
20 proposition may be submitted at a primary, MUNICIPAL or <--
21 general election. The petition must be received by the county
22 board of elections at least 60 days before the election. If a
23 majority of the county voters voting on the proposition favor
24 the conduct of gambling games, the commission may issue one
25 or more licenses as provided in this act. If a majority of
26 the county voters voting on the proposition do not favor the
27 conduct of gambling games, a license to conduct gambling
28 games in the county shall not be issued. After a referendum
29 has been held, another referendum shall not be held for at
30 least two years.
19910H0248B1634 - 22 -
1 (2) If a license to conduct gambling games is in effect,
2 pursuant to a referendum as set forth in this section, and is
3 subsequently disapproved by a referendum of the county
4 electorate, the license shall be canceled as of the <--
5 succeeding July 1 60 DAYS FROM THE DATE OF THE REFERENDUM. <--
6 (i) (H) Docking fee.--If a docking fee is charged by a <--
7 municipality, the operator shall pay the docking fee one year in
8 advance.
9 (j) (I) Payment of taxes and fees.--An operator shall not be <--
10 delinquent in the payment of property taxes or other taxes or
11 fees or in the payment of any other contractual obligation or
12 debt due or owed to a municipality POLITICAL SUBDIVISION OR THE <--
13 COMMONWEALTH.
14 (k) (J) Requirements of State agencies.--An excursion <--
15 gambling boat operated on waters of this Commonwealth shall meet
16 all of the requirements of the Pennsylvania Fish Commission, the
17 Department of Health and the Department of Environmental
18 Resources and is subject to inspection of its sanitary
19 facilities to protect the environment and water quality before a
20 certificate of registration is issued by the Pennsylvania Fish
21 Commission under 30 Pa.C.S. Ch. 53 (relating to registration of
22 boats) or a license is issued under this act.
23 (l) Ports of call.--If an excursion gambling boat stops at <--
24 more than one harbor and travels past a county without stopping
25 at any port in that county, the commission shall require the
26 excursion boat operator to develop a schedule for ports of call
27 in which a county referendum has been approved if the port of
28 call has the necessary facilities to handle the boat. The
29 commission may limit the schedule to only one port of call per
30 county.
19910H0248B1634 - 23 -
1 (K) PORTS OF CALL.--IF AN EXCURSION BOAT TRAVELS BY OR <--
2 THROUGH MORE THAN ONE COUNTY, THE OPERATOR OF SUCH BOAT SHALL
3 SCHEDULE AT LEAST ONE PORT OF CALL IN ANY COUNTY IN WHICH A
4 COUNTY REFERENDUM HAS BEEN APPROVED, PROVIDED THAT THERE EXISTS
5 THE NECESSARY FACILITIES TO HANDLE THE BOAT. THE COMMISSION
6 SHALL DESIGNATE SUCH PORTS OF CALL IF THE OPERATOR FAILS TO DO
7 SO.
8 (m) (L) Revocation of license.--Upon a violation of any of <--
9 the conditions listed in this section, the commission shall
10 immediately revoke the license.
11 Section 10. Bond of operator.
12 An operator shall post a bond to the Commonwealth before the
13 license is issued in such sum as the commission shall fix, with
14 sureties to be approved by the commission. The bond shall be
15 used to guarantee that the operator faithfully makes the
16 payments, keeps its books and records, makes reports, and
17 conducts its gambling games in conformity with this act and the
18 rules adopted by the commission. The bond shall not be canceled
19 by a surety on less than 30-day notice in writing to the
20 commission. If a bond is canceled and the operator fails to file
21 a new bond with the commission in the required amount on or
22 before the effective date of cancellation, the operator's
23 license shall be revoked. The total and aggregate liability of
24 the surety on the bond is limited to the amount specified in the
25 bond.
26 Section 11. Wagering; minors prohibited.
27 (a) Wagering.--The operator shall permit no form of wagering
28 on gambling games, except as permitted in this section.
29 (b) Maximum wagers and losses.--Operators shall allow only a
30 maximum wager of $5 per hand or play and a maximum loss of $200
19910H0248B1634 - 24 -
1 per person during each gambling excursion. However, the
2 commission may adopt rules allowing additional wagers consistent
3 with generally accepted wagering options in the games of twenty-
4 one and dice.
5 (c) Wagerers to be present.--The operator may receive wagers
6 only from persons present on an excursion gambling boat.
7 (d) Tokens, chips, etc.--The operator shall exchange the
8 money of each wagerer for tokens, chips or other forms of credit
9 to be wagered on the gambling games. The operator shall exchange
10 the gambling tokens, chips or other forms of wagering credit for
11 money at the request of the wagerer. Wagering shall not be
12 conducted with money or other negotiable currency.
13 (e) Persons under 21 years.--A person under the age of 21
14 years shall not BE PERMITTED TO make a wager on an excursion <--
15 gambling boat. No person under the age of 21 years shall be
16 allowed in the area of the excursion boat where gambling is
17 being conducted except where authorized by the act of April 12,
18 1951 (P.L.90, No.21), known as the Liquor Code.
19 (f) Gambling when boat is docked.--An operator shall not
20 conduct gambling games while the excursion gambling boat is
21 docked unless it is only temporarily docked for embarking or
22 disembarking passengers, crew or supplies, or for mechanical
23 problems or adverse weather or other conditions adversely
24 affecting safe navigation, during the course of an excursion
25 cruise.
26 Section 12. Admission fee; tax; local fees.
27 (a) State admission fee.--An operator shall collect and (A) <--
28 STATE ADMISSION FEE.--
29 (1) AN OPERATOR SHALL COLLECT AND remit to the
30 commission a State admission fee for each person embarking on
19910H0248B1634 - 25 -
1 an excursion gambling boat with a ticket of admission. The
2 State admission fee shall be set by the commission.
3 (1) (2) If tickets are issued which are good for more <--
4 than one excursion, the State admission fee shall be paid for
5 each person using the ticket on each excursion for which the
6 ticket is used.
7 (2) (3) If free passes or complimentary admission <--
8 tickets are issued, the operator shall pay the same State fee
9 upon the passes or complimentary tickets as if they were sold
10 at the regular and usual admission rate, except that the
11 operator may issue State fee-free passes to actual and
12 necessary officials and employees of the operator and other
13 persons actually working on the excursion gambling boat.
14 (3) (4) The issuance of State fee-free passes is subject <--
15 to the rules of the commission. A list of all persons to whom
16 State fee-free passes are issued shall be filed with the
17 commission.
18 (b) Local admission fee.--In addition to the State admission
19 fee charged under subsection (a) and subject to approval of
20 excursion gambling boat docking by the voters, a municipality
21 may adopt, by ordinance, an admission fee not exceeding 50¢ for
22 each person embarking on an excursion gambling boat docked
23 within the municipality. The admission revenue received by a
24 municipality shall be credited to the municipality's general
25 fund.
26 (c) Determination of fees.--In determining the annual
27 license fees and State admission fees to be charged under this <--
28 section, the commission shall use the amount appropriated to the
29 commission as the basis for determining the amount of revenue to
30 be raised from the license fees and State admission fees. It is
19910H0248B1634 - 26 -
1 the intent of the General Assembly that the commission shall be
2 fully funded from the moneys produced by the annual license and
3 admission fees.
4 (d) Prohibition against other taxes or fees.--No license
5 tax, permit tax, occupation tax, excursion fee, or other tax or
6 fee, shall be levied, assessed or collected from an operator by
7 a political subdivision except as provided in this section, nor
8 shall any excise tax be levied, assessed or collected from the
9 operator relating to gambling excursions or admission charges by
10 a political subdivision except as provided in this section.
11 Section 13. Wagering tax; rate; credit.
12 A wagering tax is imposed on the adjusted gross receipts
13 received annually from gambling games authorized under this act <--
14 at the rate of 15% of adjusted gross receipts. The taxes imposed
15 by this section shall be paid by the operator to the Department
16 of Revenue within ten days after the close of the month when the
17 wagers were made and shall be distributed as follows:
18 (1) Twenty-five percent of the wagering tax shall be <--
19 remitted to the treasurer of the county in which the dock is
20 located and shall be deposited in the general fund of the
21 county. Another 25% of the wagering tax shall be remitted to
22 the treasurer of the Pennsylvania municipal corporation where
23 the dock is located and shall be deposited in the general
24 fund of the municipal corporation. In the case where the
25 municipal corporation in which the dock is located, is a
26 first class city, such city shall receive 50% of the wagering
27 tax.
28 (1) (I) TWENTY-FIVE PERCENT OF THE WAGERING TAX SHALL <--
29 BE DISTRIBUTED TO EACH COUNTY HAVING EITHER A HOME PORT
30 OR A PORT OF CALL, BASED ON THE RATIO OF THE NUMBER OF
19910H0248B1634 - 27 -
1 PASSENGERS EMBARKING FROM THAT PORT, TO THE TOTAL NUMBER
2 OF STATEWIDE EMBARKATIONS DURING EACH CALENDAR MONTH.
3 (II) TWENTY-FIVE PERCENT OF THE WAGERING TAX SHALL
4 BE DISTRIBUTED TO EACH MUNICIPALITY HAVING EITHER A HOME
5 PORT OR A PORT OF CALL, BASED ON THE RATIO OF THE NUMBER
6 OF PASSENGERS EMBARKING FROM THAT PORT, TO THE TOTAL
7 NUMBER OF STATEWIDE EMBARKATIONS DURING EACH CALENDAR
8 MONTH.
9 (III) THE CITY AND COUNTY OF PHILADELPHIA SHALL BE
10 ENTITLED TO A DISTRIBUTIVE SHARE UNDER EACH OF THE
11 FORMULAS DESCRIBED IN SUBPARAGRAPHS (I) AND (II).
12 (2) The remaining amount of the wagering tax shall be
13 credited to the General Fund of the Commonwealth.
14 Section 14. Books and records; reports; audits; supervision.
15 (a) Books and records.--An operator shall keep its books and
16 records so as to clearly show all of the following:
17 (1) The total number of admissions to gambling
18 excursions conducted by the operator on each day, including
19 the number of admissions upon free passes or complimentary
20 tickets.
21 (2) THE COUNTY AND MUNICIPALITY OF ORIGIN OF EACH <--
22 PASSENGER ADMISSION WHETHER PAID, FREE OR COMPLIMENTARY,
23 EXCLUDING OFFICIALS AND EMPLOYEES OF THE OPERATOR.
24 (2) (3) The amount received daily from admission fees. <--
25 (3) (4) The total amount of money wagered during each <--
26 excursion day and the adjusted gross receipts for the day.
27 (b) Reports.--The operator shall furnish to the commission
28 reports and information as the commission may require with
29 respect to its activities. The commission may designate a
30 representative to board an excursion gambling boat, who shall
19910H0248B1634 - 28 -
1 have full access to all places within the enclosure of the boat
2 and who shall supervise and check the admissions. The
3 compensation of the representative shall be fixed AND PAID by <--
4 the commission but shall be paid THE COSTS THEREOF SHALL BE <--
5 BORNE by the operator.
6 (c) Records to be public.--The books and records kept by an
7 operator, as provided by this section, are public records.
8 (d) Audits.--Within 90 days after the end of each month, the
9 operator shall transmit to the commission an audit of the
10 financial transactions and condition of the operator's books and
11 records. Additionally, within 90 days after the end of the
12 operator's fiscal year, the operator shall transmit to the
13 commission an audit of the financial transactions and condition
14 of the operator. All audits shall be conducted by certified
15 public accountants who are certificated by the Department of
16 State.
17 Section 15. Annual report of commission.
18 The commission shall make an annual report to the Governor
19 for the period ending December 31 of each year. Included in the
20 report shall be an account of the commission's actions, its
21 financial position and results of operations under this act, the
22 practical results attained under this act and any
23 recommendations for legislation which the commission deems
24 advisable.
25 Section 16. Prohibited activities; penalty.
26 (a) Prohibited activities.--A person commits a misdemeanor <--
27 of the second degree for any of the following:
28 (1) Operating a gambling excursion where wagering is
29 used or to be used without a license issued by the
30 commission.
19910H0248B1634 - 29 -
1 (2) Operating a gambling excursion where wagering is
2 permitted other than in the manner specified by section 9.
3 (3) Acting, or employing a person to act, as a shill or
4 decoy to encourage participation in a gambling game.
5 (4) Knowingly permitting a person under 21 years of age
6 to make a wager.
7 (5) Wagering or accepting a wager at any location
8 outside the excursion gambling boat.
9 (b) Serious offenses.--A person commits a felony of
10 (A) PROHIBITED CONDUCT.--ANY PERSON WHO USES A DEVICE TO <--
11 ASSIST IN ANY OF THE FOLLOWING SHALL BE EJECTED AND BARRED FOR
12 LIFE FROM EMBARKING UPON AN EXCURSION GAMBLING BOAT:
13 (1) PROJECTING THE OUTCOME OF THE GAME.
14 (2) KEEPING TRACK OF THE CARDS PLAYED.
15 (3) ANALYZING THE PROBABILITY OF THE OCCURRENCE OF AN
16 EVENT RELATING TO THE GAMBLING GAME.
17 (4) ANALYZING THE STRATEGY FOR PLAYING OR BETTING USED
18 IN THE GAME, EXCEPT AS PERMITTED BY THE COMMISSION.
19 (B) MISDEMEANOR OFFENSES.--A PERSON COMMITS A MISDEMEANOR OF
20 THE SECOND DEGREE FOR ANY OF THE FOLLOWING:
21 (1) OPERATING A GAMBLING EXCURSION WHERE WAGERING IS
22 PERMITTED OTHER THAN IN THE MANNER SPECIFIED BY SECTION 9.
23 (2) KNOWINGLY PERMITTING A PERSON UNDER 21 YEARS OF AGE
24 TO MAKE A WAGER.
25 (3) WAGERING OR ACCEPTING A WAGER AT ANY LOCATION
26 OUTSIDE THE EXCURSION GAMBLING BOAT.
27 (4) CHEATING AT A GAMBLING GAME.
28 (C) FELONY OFFENSES.--A PERSON COMMITS A FELONY OF the third
29 degree and, in addition, shall be barred for life from excursion
30 gambling boats under the jurisdiction of the commission, if he
19910H0248B1634 - 30 -
1 does any of the following:
2 (1) Offers, promises or gives anything of value or
3 benefit to a person who is connected with an excursion
4 gambling boat operator, including, but not limited to, an
5 officer or employee of a licensee or holder of an
6 occupational license, pursuant to an agreement or arrangement
7 or with the intent that the promise or thing of value or
8 benefit will influence the actions of the person to whom the
9 offer, promise or gift was made in order to affect or attempt
10 to affect the outcome of a gambling game, or to influence
11 official action of a member of the commission.
12 (2) Solicits or knowingly accepts or receives a promise
13 of anything of value or benefit while the person is connected
14 with an excursion gambling boat, including, but not limited
15 to, an officer or employee of a licensee or holder of an
16 occupational license, pursuant to an understanding or
17 arrangement or with the intent that the promise or thing of
18 value or benefit will influence the actions of the person to
19 affect or attempt to affect the outcome of a gambling game,
20 or to influence official action of a member of the
21 commission.
22 (3) Uses a device to assist in any of the following: <--
23 (i) In projecting the outcome of the game.
24 (ii) In keeping track of the cards played.
25 (iii) In analyzing the probability of the occurrence
26 of an event relating to the gambling game.
27 (iv) In analyzing the strategy for playing or
28 betting used in the game, except as permitted by the
29 commission.
30 (4) Cheats at a gambling game.
19910H0248B1634 - 31 -
1 (5) (3) Manufactures, sells, or distributes any cards, <--
2 chips, dice, game or device which is intended to be used to
3 violate any provision of this act.
4 (6) (4) Alters or misrepresents the outcome of a <--
5 gambling game on which wagers have been made after the
6 outcome is made sure but before it is revealed to the
7 players.
8 (7) (5) Places a bet after acquiring knowledge, not <--
9 available to all players, of the outcome of the gambling game
10 which is the subject of the bet or to aid a person in
11 acquiring the knowledge for the purpose of placing a bet
12 contingent on that outcome.
13 (8) Claims, collects, or takes, or attempts to claim, <--
14 collect, or take, money or anything of value in or from a
15 gambling game, with intent to defraud, without having made a
16 wager contingent on winning a gambling game, or claims,
17 collects, or takes an amount of money or thing of value of
18 greater value than the amount won.
19 (9) Knowingly entices or induces a person to go to any
20 place where a gambling game is being conducted or operated in
21 violation of the provisions of this act with the intent that
22 the other person plays or participates in that gambling game.
23 (10) (6) Uses counterfeit chips or tokens in a gambling <--
24 game.
25 (11) (7) Knowingly uses, other than chips, tokens, coin, <--
26 or other methods or credit approved by the commission, legal
27 tender of the United States, or to use coin not of the
28 denomination as the coin intended to be used in the gambling
29 games.
30 (12) (8) Has in his possession any device intended to be <--
19910H0248B1634 - 32 -
1 used to violate a provision of this act.
2 (13) (9) Except for an operator or employee of an <--
3 operator acting in furtherance of the employee's employment,
4 has in his possession any key or device designed for the
5 purpose of opening, entering, or affecting the operation of a
6 gambling game, drop box, or an electronic or mechanical
7 device connected with the gambling game or for removing
8 coins, tokens, chips or other contents of a gambling game.
9 (10) ACTING, OR EMPLOYING A PERSON TO ACT, AS A SHILL OR <--
10 DECOY TO ENCOURAGE PARTICIPATION IN A GAMBLING GAME.
11 (c) (D) Inference.--The possession of more than one of the <--
12 devices described in subsection (b)(3), (5), (12) or (13) <--
13 (C)(3), (8) OR (9) permits a rebuttable inference that the <--
14 possessor intended to use the devices for cheating.
15 (d) (E) Exchanging tokens, chips, etc.--Except for wagers on <--
16 gambling games or exchanges for money as provided in section
17 11(d), a licensee who exchanges tokens, chips, or other forms of
18 credit to be used on gambling games for anything of value
19 commits a misdemeanor of the third degree.
20 Section 17. Forfeiture of property.
21 (a) General rule.--Anything of value, including all
22 traceable proceeds, including, but not limited to, real and
23 personal property, moneys, negotiable instruments, securities,
24 and conveyances, is subject to forfeiture to the Commonwealth if
25 the item was used:
26 (1) in exchange for a bribe intended to affect the
27 outcome of a gambling game; or
28 (2) in exchange for or to facilitate any other violation
29 of this act.
30 (b) Presumption.--All moneys, coin and currency found in
19910H0248B1634 - 33 -
1 close proximity of wagers or of records of wagers are presumed
2 forfeited. The burden of proof is upon the claimant of the
3 property to rebut this presumption.
4 (c) Knowledge as prerequisite.--Subsections (a) and (b)
5 apply only if the act or omission which would give rise to the
6 forfeiture was committed or omitted with the owner's knowledge
7 and consent.
8 Section 18. Report of implementation.
9 The commission shall report to the General Assembly by April
10 1, 1993, the number of excursion gambling boat licenses which
11 the commission has issued. The report shall also include the
12 administrative rules which the commission proposes or has
13 adopted to implement the provisions of this act. which the
14 commission proposes or has adopted to implement the provisions
15 of this act.
16 Section 19. Commission.
17 The River Boat Gambling Commission is created, consisting of
18 seven members, two of whom shall be appointed by the Governor
19 under the provisions of section 207.1(d) of the act of April 9,
20 1929 (P.L.177, No.175), known as The Administrative Code of
21 1929. The remaining five members shall consist of two members <--
22 elected to the House of Representatives, one from the majority
23 party and one from the minority party, to be appointed by the
24 Speaker of the House of Representatives and two members elected
25 to the Senate, one from the majority party and one from the
26 minority party, to be appointed by the President pro tempore of
27 the Senate. The remaining member shall be the Attorney General.
28 The members of the commission shall serve for three-year terms
29 at the pleasure of the Governor, except that the Governor's
30 original appointments shall be one for four years and one for
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1 two years. THE REMAINING FIVE MEMBERS SHALL CONSIST OF ONE TO BE <--
2 APPOINTED BY THE PRESIDENT PRO TEMPORE OF THE SENATE, ONE BY THE
3 SPEAKER OF THE HOUSE OF REPRESENTATIVES, ONE BY THE MINORITY
4 LEADER OF THE SENATE AND ONE BY THE MINORITY LEADER OF THE HOUSE
5 OF REPRESENTATIVES. THE REMAINING MEMBER SHALL BE APPOINTED BY
6 THE ATTORNEY GENERAL. THE MEMBERS OF THE COMMISSION SHALL SERVE
7 THREE-YEAR TERMS, EXCEPT THAT THE GOVERNOR'S ORIGINAL
8 APPOINTMENTS SHALL BE ONE FOR FOUR YEARS AND ONE FOR TWO YEARS.
9 ONE OF THE GOVERNOR'S APPOINTEES SHALL BE A CERTIFIED PUBLIC
10 ACCOUNTANT WITH A MINIMUM OF TEN YEARS EXPERIENCE, WHO IS
11 LICENSED TO PRACTICE ACCOUNTANCY IN THIS COMMONWEALTH. THE
12 GOVERNOR'S OTHER APPOINTEE SHALL HAVE COMPREHENSIVE KNOWLEDGE OF
13 THE PRINCIPLES AND PRACTICE OF CORPORATE FINANCE AND HAVE A
14 MINIMUM OF TEN YEARS EXPERIENCE IN THE FIELD. THE ATTORNEY
15 GENERAL'S APPOINTEE SHALL HAVE A MINIMUM OF TEN YEARS EXPERIENCE
16 IN THE FIELD OF LAW ENFORCEMENT.
17 SECTION 20. QUALIFICATIONS FOR COMMISSION MEMBERS.
18 (A) QUALIFICATIONS ENUMERATED.--THE MEMBERS OF THE
19 COMMISSION SHALL MEET THE FOLLOWING REQUIREMENTS:
20 (1) THE MEMBER MUST BE A UNITED STATES CITIZEN AND
21 RESIDENT OF THIS COMMONWEALTH.
22 (2) THE MEMBER MUST NOT BE A MEMBER OF THE GENERAL
23 ASSEMBLY, OR HOLD ANY ELECTIVE OR APPOINTED OFFICE IN
24 FEDERAL, STATE OR LOCAL GOVERNMENT.
25 (3) THE MEMBER SHALL NOT BE A MEMBER OF ANY COMMITTEE OF
26 ANY POLITICAL PARTY OR ENGAGE IN ANY POLITICAL PARTY
27 ACTIVITY.
28 (4) THE MEMBER SHALL NOT BE PECUNIARILY INTERESTED IN
29 ANY BUSINESS OR ORGANIZATION HOLDING AN OPERATOR'S,
30 DISTRIBUTOR'S OR MANUFACTURER'S LICENSE UNDER THIS ACT OR
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1 DOING BUSINESS WITH ANY PERSON OR ORGANIZATION LICENSED UNDER
2 THIS ACT.
3 (B) OATH OF OFFICE.--AN APPOINTEE, BEFORE ENTERING UPON THE
4 DUTIES OF COMMISSIONER, SHALL SWEAR THAT HE IS NOT PECUNIARILY
5 INTERESTED IN ANY BUSINESS OR ORGANIZATION HOLDING AN
6 OPERATOR'S, DISTRIBUTOR'S OR MANUFACTURER'S LICENSE OR DOING
7 BUSINESS WITH ANY SUCH PERSON OR ORGANIZATION. THE OATH SHALL BE
8 FILED IN THE OFFICE OF THE SECRETARY OF STATE.
9 SECTION 21. DISQUALIFICATION.
10 ANY MEMBER OF THE COMMISSION SHALL BE REMOVED FROM OFFICE BY
11 THE GOVERNOR FOR INCOMPETENCY, MISCONDUCT IN OFFICE, WILLFUL
12 NEGLECT OF DUTY OR OTHER CONDUCT EVIDENCING UNFITNESS FOR THE
13 OFFICE.
14 Section 20 22. Exemption from State gambling laws. <--
15 Video poker machines and their use are exempt under this act <--
16 from 18 Pa.C.S. § 5513 (relating to gambling devices, gambling,
17 etc.). THE POSSESSION OF GAMBLING DEVICES AND THE CONDUCT OF <--
18 GAMBLING ACTIVITIES AUTHORIZED BY THIS ACT SHALL NOT BE
19 CONSIDERED VIOLATIONS OF 18 PA.C.S. § 5513 (RELATING TO GAMBLING
20 DEVICES, GAMBLING, ETC.).
21 Section 21 23. Exemption from Federal regulation. <--
22 For the purposes of this act, the General Assembly declares
23 that the Commonwealth is exempt from section 2 of the Gambling
24 Devices Transportation Act (64 Stat. 1134, 15 U.S.C. § 1172 et
25 seq.). Shipments of video devices into this Commonwealth in
26 compliance with sections 3 and 4 of the Gambling Devices
27 Transportation Act (64 Stat. 1134, 15 U.S.C. §§ 1173 and 1174)
28 shall be deemed legal shipments into this Commonwealth.
29 Section 22 24. Effective date. <--
30 This act shall take effect immediately.
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