PRINTER'S NO. 2339

THE GENERAL ASSEMBLY OF PENNSYLVANIA


HOUSE BILL

No. 2121 Session of 2007


        INTRODUCED BY DeWEESE, WANSACZ, CALTAGIRONE, EACHUS, FABRIZIO,
           FRANKEL, GERBER, HARHAI, HARKINS, HORNAMAN, KULA, OLIVER,
           PALLONE, PASHINSKI, SANTONI, SHIMKUS, SURRA, J. WHITE,
           WOJNAROSKI AND SIPTROTH, JULY 14, 2007

        REFERRED TO COMMITTEE ON GAMING OVERSIGHT, JULY 14, 2007

                                     AN ACT

     1  Relating to amusement; authorizing table games; imposing powers
     2     and duties on the Pennsylvania Gaming Control Board;
     3     providing for eligibility to conduct authorized table games,
     4     for licensure of table game facilities, for conduct of
     5     authorized table games, for statement of compliance, for
     6     certificate of operation, for table game employees, for key
     7     employees, for service industry employees and for licensure
     8     of table game service industries; imposing powers and
     9     conferring duties on the Bureau of Investigation and
    10     Enforcement, the Pennsylvania State Police and the Attorney
    11     General; providing for distribution of gross table game
    12     revenue, for property tax relief, for corrupt organizations,
    13     for prohibitions, for inspections, for enforcement and for
    14     compulsive and problem gambling assistance; providing
    15     penalties; making appropriations; and making related repeals.

    16                         TABLE OF CONTENTS
    17  Chapter 1.  Preliminary Provisions
    18  Section 101.  Short title.
    19  Section 102.  Legislative finding and declaration.
    20  Section 103.  Definitions.
    21  Chapter 2.  Table Games Authorized
    22  Section 201.  Authorization to conduct table games.
    23  Section 202.  Authorized locations for operation.


     1  Section 203.  Commencement of table game operations.
     2  Section 204.  Applicability.
     3  Chapter 3.  Duties of Board
     4  Section 301.  General powers.
     5  Section 302.  Powers and duties of board.
     6  Section 303.  Regulatory powers.
     7  Section 304.  Denials and sanctions.
     8  Section 305.  Annual report, study and recommendations.
     9  Section 306.  Application hearing process.
    10  Section 307.  Board minutes and records.
    11  Section 308.  Maintenance of information.
    12  Section 309.  Temporary regulations.
    13  Section 310.  Diversity goals and requirements of board.
    14  Section 311.  Application appeals.
    15  Section 312.  Issuance of license, permit or registration.
    16  Chapter 4.  Fees, Fines and Penalties
    17  Section 401.  Authority of board; imposition and collection of
    18                 fees, fines and penalties.
    19  Section 402.  Table game license fee.
    20  Section 403.  Deposit of fees.
    21  Section 404.  Ability to pay license fee.
    22  Chapter 5.  Authorized Licenses
    23  Section 501.  Table game licensing requirements.
    24  Section 502.  Statement of compliance.
    25  Section 503.  Table game license applicant eligibility.
    26  Section 504.  Requirements to manage.
    27  Section 505.  Eligibility of corporations.
    28  Section 506.  Restrictions on licensure.
    29  Chapter 6.  Table Game License Application
    30  Section 601.  Application for table game license.
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     1  Section 602.  Disqualification for licensure.
     2  Section 603.  Order approving or denying table game license
     3                 and investigation.
     4  Section 604.  Renewal of table game license.
     5  Section 605.  Bond.
     6  Section 606.  Confidentiality of information.
     7  Chapter 7.  Table Game Key Employee License
     8  Section 701.  Licensure of table game key employees.
     9  Section 702.  Denial of license.
    10  Section 703.  Petition for temporary license.
    11  Chapter 8.  Table Game Employee Occupation Permit
    12  Section 801.  Occupation permit required.
    13  Section 802.  Requirements for permit.
    14  Section 803.  Residency.
    15  Section 804.  Convictions not basis for denial of permit.
    16  Chapter 9.  Table Game Service Employees
    17  Section 901.  Table game service employees registration
    18                 required.
    19  Section 902.  Application requirements.
    20  Section 903.  Residency.
    21  Section 904.  Convictions not basis for revocation of
    22                 registration.
    23  Section 905.  Petition for registration.
    24  Section 906.  Registration fee.
    25  Chapter 10.  Table Game Service Industry
    26  Section 1001.  Licensure of table game service industry.
    27  Section 1002.  Qualifications of table game service industry.
    28  Section 1003.  Table game service industries.
    29  Section 1004.  Restrictions on exempted persons.
    30  Section 1005.  Disqualification.
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     1  Section 1006.  Proof of business license and taxes.
     2  Section 1007.  Subcontractor requirements.
     3  Chapter 11.  Approval or Denial of License, Permit or
     4                 Registration
     5  Section 1101.  Investigation.
     6  Section 1102.  Issuance or denial of license, permit or
     7                 registration.
     8  Section 1103.  Authority to deny application.
     9  Section 1104.  Issuance and renewal of license, permit or
    10                 registration.
    11  Section 1105.  Time for renewal; extension.
    12  Chapter 12.  Transfers
    13  Section 1201.  Transfer of property or security.
    14  Section 1202.  Request for interim authorization.
    15  Section 1203.  Trust agreements.
    16  Section 1204.  Obligations and responsibilities.
    17  Section 1205.  Time for determining qualification.
    18  Chapter 13.  Conditions of Operation
    19  Section 1301.  Operation certificate.
    20  Section 1302.  Condition of continued operation.
    21  Section 1303.  Hours of operation.
    22  Chapter 14.  Game and Facility Requirements
    23  Section 1401.  Authorized table games.
    24  Section 1402.  Wagers and payoffs.
    25  Section 1403.  Information to patrons and players.
    26  Section 1404.  Acceptance of tips.
    27  Section 1405.  Table game facility requirements.
    28  Section 1406.  Table game devices, apparatuses, equipment and
    29                 supplies.
    30  Section 1407.  Restrictions and prohibitions.
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     1  Section 1408.  Density requirement.
     2  Section 1409.  Approved hotels.
     3  Chapter 15.  Internal Controls
     4  Section 1501.  Internal controls.
     5  Section 1502.  Modification of internal controls.
     6  Section 1503.  Additional submissions to board.
     7  Chapter 16.  Credit
     8  Section 1601.  Restriction on provision of credit.
     9  Section 1602.  Acceptance of checks.
    10  Section 1603.  Prohibition on provision of credit.
    11  Section 1604.  Accounts, deposits and transactions.
    12  Section 1605.  Limitation on amount redeemed.
    13  Chapter 17.  Supplier and Manufacturer Licenses
    14  Section 1701.  Supplier and manufacturer licenses.
    15  Section 1702.  Additional eligibility requirements.
    16  Section 1703.  Issuance of license.
    17  Section 1704.  Additional supplier license requirements.
    18  Section 1705.  Records.
    19  Section 1706.  Inspections.
    20  Chapter 18.  Junkets and Complimentary Services
    21  Section 1801.  Junkets.
    22  Section 1802.  Temporary occupation permit.
    23  Section 1803.  Agreements.
    24  Section 1804.  Responsibility of licensee for conduct of
    25                 junket.
    26  Section 1805.  Violation of terms of junket.
    27  Section 1806.  Records of junkets.
    28  Section 1807.  Report of junket participants.
    29  Section 1808.  Junket arrangements; exemption determination.
    30  Section 1809.  Prohibitions relating to junkets.
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     1  Section 1810.  Complimentary services.
     2  Section 1811.  Prohibition on provision of complimentary
     3                 services.
     4  Chapter 19.  Professional Services
     5  Section 1901.  Definitions.
     6  Section 1902.  Reporting of professional services.
     7  Chapter 20.  Agreements, Leases and Contracts
     8  Section 2001.  Payments under agreement, lease or contract.
     9  Section 2002.  Maintenance of records.
    10  Section 2003.  Termination of agreement by board.
    11  Section 2004.  Transfer of license.
    12  Chapter 21.  Corporate Licensees
    13  Section 2101.  Disposition of securities.
    14  Section 2102.  Action upon finding of disqualification.
    15  Section 2103.  Prohibition upon disqualification.
    16  Section 2104.  Reports by public and nonpublicly traded
    17                 corporations.
    18  Section 2105.  Report of changes in corporation.
    19  Chapter 22.  Employment
    20  Section 2201.  Table game facility employment.
    21  Chapter 23.  Table Game Revenue
    22  Section 2301.  Accounts and deposits.
    23  Section 2302.  Gross table game revenue deductions.
    24  Section 2303.  Table game tax.
    25  Section 2304.  Distribution to Pennsylvania Race Horse
    26                 Development Fund.
    27  Chapter 24.  Administration and Enforcement
    28  Section 2401.  Authority and responsibility of department.
    29  Section 2402.  Powers and duties of bureau.
    30  Section 2403.  Duties of Pennsylvania State Police.
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     1  Section 2404.  Inspections.
     2  Chapter 25.  Prohibitions
     3  Section 2501.  Prohibitions.
     4  Section 2502.  Reports of suspicious transactions.
     5  Section 2503.  Specific offenses relating to table games and
     6                 penalties.
     7  Section 2504.  Underage gambling and prohibition.
     8  Section 2505.  Authority to detain.
     9  Section 2506.  Additional prohibitions and penalties.
    10  Section 2507.  Sanctions.
    11  Section 2508.  Continuing offenses.
    12  Section 2509.  Property subject to seizure, confiscation,
    13                     destruction or forfeiture.
    14  Chapter 26.  Racketeering and Corrupt Organizations
    15  Section 2601.  Racketeering and corrupt organizations.
    16  Section 2602.  Racketeering activity.
    17  Chapter 27.  Public Officials
    18  Section 2701.  Financial interest and prohibitions.
    19  Section 2702.  Political influence.
    20  Chapter 28.  Compulsive Gambling Assistance
    21  Section 2801.  Establishment of program; duties of licensee.
    22  Chapter 29.  Miscellaneous Provisions
    23  Section 2901.  Electronic funds transfer terminal; automatic
    24                     teller machines.
    25  Section 2902.  Liquor license.
    26  Section 2903.  Exclusive jurisdiction of Pennsylvania Supreme
    27                 Court.
    28  Section 2904.  Appropriations.
    29  Section 2905.  Severability.
    30  Section 2906.  Repeals.
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     1  Section 2907.  Effective date.
     2     The General Assembly of the Commonwealth of Pennsylvania
     3  hereby enacts as follows:
     4                             CHAPTER 1
     5                       PRELIMINARY PROVISIONS
     6  Section 101.  Short title.
     7     This act shall be known and may be cited as the Table Game
     8  Authorization and Control Act.
     9  Section 102.  Legislative finding and declaration.
    10     The General Assembly finds and hereby declares that this act
    11  is intended to benefit the people of the Commonwealth of
    12  Pennsylvania by providing additional revenue for the support of
    13  property and wage tax relief. The General Assembly further finds
    14  that the authorization for and development of a controlled
    15  gaming industry requires careful exercise of legislative power
    16  to protect the general health, welfare and safety of the people
    17  of this Commonwealth. Therefore, the General Assembly further
    18  finds and declares that:
    19         (1)  It is the public policy of this Commonwealth that
    20     the authorization to conduct and operate table games at
    21     licensed slot machine facilities to generate revenue for
    22     property and wage tax relief and promote investment, economic
    23     development and tourism, including international tourism,
    24     requires the enactment of comprehensive measures to ensure
    25     that table games are free from criminal and corruptive
    26     elements, conducted honestly and competitively, and in
    27     suitable locations.
    28         (2)  The policy purposes of this act will not be achieved
    29     unless public confidence and trust in the credibility and
    30     integrity of table game operations and their regulatory
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     1     process is maintained. Accordingly, the provisions of this
     2     act are crafted to strictly regulate table game facilities
     3     and persons, locations, associations, activities and
     4     practices related to the conduct and operation of authorized
     5     table games.
     6         (3)  Public trust and confidence in table game operations
     7     can only be maintained by strict and comprehensive regulation
     8     of all persons, locations, associations, activities and
     9     practices related to the conduct and operation of licensed
    10     table game facilities; the manufacture and distribution of
    11     table game equipment, apparatuses, devices and supplies; and
    12     the provision of goods, services and property used in the
    13     conduct and operation of authorized table games at licensed
    14     table game facilities.
    15         (4)  All table game operations, all individuals and
    16     persons who have or will have a significant involvement in
    17     table game operations, all licensed slot machine facilities
    18     where table games will be conducted, all manufacturers,
    19     suppliers and other approved persons that provide table game
    20     equipment, apparatuses, devices and supplies and all
    21     providers of goods, services and property used in the conduct
    22     and operation of authorized table games and table game
    23     facilities shall be approved, licensed or regulated to
    24     protect the public health, safety and general welfare of the
    25     residents of this Commonwealth as an exercise of the police
    26     power of this Commonwealth.
    27         (5)  In order to effectuate the policy purposes of this
    28     act, it is necessary and essential:
    29             (i)  that table game facilities, activities and all
    30         equipment, devices, apparatuses and supplies used in the
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     1         conduct of authorized table games and persons
     2         participating in those activities be licensed, permitted
     3         or registered or otherwise approved or qualified by the
     4         Pennsylvania Gaming Control Board in accordance with the
     5         provisions of this act;
     6             (ii)  that certain transactions, events and processes
     7         involving licensed table game facilities and table game
     8         licensees be subject to prior approval;
     9             (iii)  that unsuitable persons not be permitted to
    10         associate with table game licensees and other persons
    11         involved in the conduct and operation of authorized table
    12         games at licensed table game facilities; and
    13             (iv)  that table game activities take place only in
    14         licensed slot machine facilities.
    15         (6)  To ensure that table game operations are conducted
    16     honestly, competitively and free of criminal and corruptive
    17     elements. Any license, permit or registration or any other
    18     approval issued or granted pursuant to this act is deemed a
    19     revocable privilege and is not a property right.
    20  Section 103.  Definitions.
    21     The following words and phrases when used in this act shall
    22  have the meanings given to them in this section unless the
    23  context clearly indicates otherwise:
    24     "Account" or "player's account."  A financial record
    25  established by a licensed table game facility for an individual
    26  patron to which the facility may credit winnings and other
    27  amounts due to the patron and from which the patron may withdraw
    28  moneys due to the patron for purchase of tokens, chips or other
    29  things or representatives of value.
    30     "Affiliate."  A person that directly or indirectly, through
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     1  one or more intermediaries, controls, or is controlled by, or is
     2  under common control with the affiliated person.
     3     "Applicant."  A person who, on his own behalf or on the
     4  behalf of another, has applied to the Pennsylvania Gaming
     5  Control Board for approval to engage in any act or activity
     6  authorized or regulated under the provisions of this act.
     7     "Application."  A written request for permission to engage in
     8  any act or activity which is authorized or regulated under the
     9  provisions of this act.
    10     "Approve," "approved" or "approval."  In the case of an
    11  application submitted to the Pennsylvania Gaming Control Board
    12  for qualification for a table game license and the authority to
    13  conduct table games, the terms, regardless of usage, refer to
    14  the date that the Pennsylvania Gaming Control Board grants the
    15  table game license, regardless of the pendency of any
    16  administrative or judicial appeal or other legal action
    17  challenging the decision of the Pennsylvania Gaming Control
    18  Board.
    19     "Authorized game," "authorized table game" or "game."  Any
    20  banking, nonbanking or percentage game played with cards, dice,
    21  tiles, dominoes or any mechanical, electronic, computerized or
    22  electrical device used to play a table game for money, property,
    23  checks, credit or any representation of value, including,
    24  without limiting the generality of the foregoing, roulette,
    25  baccarat, blackjack, craps, big six wheel, mini-baccarat, red
    26  dog, pai gow, poker, twenty-one, acey-ducey, chuck-a-luck, fan-
    27  tail, panguingui, chemin de fer, sic bo, and any variations or
    28  composites of such games, provided that the variations or
    29  composites are found by the Pennsylvania Gaming Control Board to
    30  be suitable for use after an appropriate test or experimental
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     1  period under terms and conditions as the Pennsylvania Gaming
     2  Control Board may determine appropriate; and any other game,
     3  including multiplayer electronic table games, which is
     4  determined by the Pennsylvania Gaming Control Board to be
     5  compatible with the public interest and suitable for use in a
     6  licensed table game facility after the appropriate test or
     7  experimental period as the Pennsylvania Gaming Control Board
     8  deems appropriate. The terms include table game contests or
     9  tournaments in which players compete against one another in one
    10  or more of the table games authorized under this act or by the
    11  Pennsylvania Gaming Control Board or approved variations or
    12  composites of those games, provided the Pennsylvania Gaming
    13  Control Board authorizes the contests or tournaments. The term
    14  shall not include:
    15         (1)  Lottery games of the Pennsylvania State Lottery as
    16     authorized under the act of August 26, 1971 (P.L.351, No.91),
    17     known as the State Lottery Law.
    18         (2)  Bingo as authorized under the act of July 10, 1981
    19     (P.L.214, No.67), known as the Bingo Law.
    20         (3)  Pari-mutuel betting on the outcome of thoroughbred
    21     or harness horse racing as authorized under the act of
    22     December 17, 1981 (P.L.435, No.135), known as the Race Horse
    23     Industry Reform Act.
    24         (4)  Small games of chance as authorized under the act of
    25     December 19, 1988 (P.L.1262, No.156), known as the Local
    26     Option Small Games of Chance Act.
    27         (5)  Slot machine gaming and progressive slot machine
    28     gaming as authorized under 4 Pa.C.S. Pt. II (relating to
    29     gaming).
    30     "Background investigation."  A security, criminal, financial,
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     1  credit and/or suitability investigation of a person who has
     2  applied for the issuance or renewal of a license, permit or
     3  registration under this act, or of a licensee who holds a
     4  current license. The background investigation shall include the
     5  status of any taxes owed to the United States, the Commonwealth
     6  or political subdivisions of the Commonwealth or any other
     7  jurisdiction.
     8     "Board."  The Pennsylvania Gaming Control Board.
     9     "Bureau."  The Bureau of Investigation and Enforcement of the
    10  Pennsylvania Gaming Control Board established under 4 Pa.C.S.
    11  Pt. II (relating to gaming).
    12     "Cash."  United States currency and coin or foreign currency
    13  and coin that have been exchanged for its equivalent in United
    14  States currency and coin.
    15     "Cash equivalent."  An asset that is readily convertible to
    16  cash, including, but not limited to, any of the following:
    17         (1)  Travelers checks.
    18         (2)  Certified checks, cashier's checks and money orders.
    19         (3)  Personal checks or drafts.
    20         (4)  Credit extended by the table game licensee, a
    21     recognized credit card company or banking institution.
    22         (5)  Any other instrument that the Pennsylvania Gaming
    23     Control Board deems a cash equivalent. Other than recognized
    24     credit cards or credit extended by the table game licensee,
    25     all instruments that constitute a cash equivalent shall be
    26     made payable to the table game licensee, bearer or to cash.
    27     An instrument made payable to a third party shall not be
    28     considered a cash equivalent under this definition.
    29     "Cash equivalent value."  The monetary value that a table
    30  game licensee shall assign to a jackpot or payout that consists
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     1  of merchandise or any thing of value other than cash, tokens,
     2  chips or plaques. The Pennsylvania Gaming Control Board shall
     3  promulgate rules defining "cash equivalent value" in order to
     4  assure fairness, uniformity and comparability of valuation of
     5  jackpots and payoffs that include merchandise or anything of
     6  value.
     7     "Chairman."  The chairperson of the Pennsylvania Gaming
     8  Control Board.
     9     "Chip."  A representation of value redeemable for cash only
    10  at the issuing table game facility and issued by the table game
    11  licensee for use in playing an authorized table game.
    12     "Complimentary service or item."  A service or item provided
    13  at no cost or at a reduced price. The furnishing of a
    14  complimentary service or item by a table game licensee shall
    15  constitute the indirect payment for the service or item by the
    16  table game licensee, and shall be valued in an amount based upon
    17  the retail price normally charged by the table game licensee for
    18  the service or item. The value of a complimentary service or
    19  item not normally offered for sale by a table game licensee or
    20  provided by a third party on behalf of a table game licensee
    21  shall be the cost to the table game licensee of providing the
    22  service or item, as determined in accordance with the rules of
    23  the Pennsylvania Gaming Control Board.
    24     "Control" or "controlling interest."  For a publicly traded
    25  domestic or foreign corporation, a controlling interest is an
    26  interest in a legal entity, applicant or licensee if a person's
    27  sole voting rights under State law or corporate articles or
    28  bylaws entitle the person to elect or appoint one or more of the
    29  members of the board of directors or other governing board or
    30  the ownership or beneficial holding of 5% or more of the
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     1  securities of the publicly traded corporation, partnership,
     2  limited liability company or other form of publicly traded legal
     3  entity, unless this presumption of control or ability to elect
     4  is rebutted by clear and convincing evidence. For a privately
     5  held domestic or foreign corporation, partnership, limited
     6  liability company or other form of privately held legal entity,
     7  a controlling interest is the holding of any securities in the
     8  legal entity, unless this presumption of control is rebutted by
     9  clear and convincing evidence.
    10     "Conviction."  A finding of guilt or a plea of guilty or nolo
    11  contendere, whether or not a judgment of sentence has been
    12  imposed as determined by the law of the jurisdiction in which
    13  the prosecution was entered. The term shall not include a
    14  conviction that has been expunged, overturned or for which an
    15  individual has been pardoned or where an order of accelerated
    16  rehabilitative disposition has been completed.
    17     "Counterfeit chips or tokens."  Chip-like or token-like
    18  objects that have not been approved by the Pennsylvania Gaming
    19  Control Board for use in authorized table games, including
    20  objects commonly referred to as "slugs," but not including legal
    21  coins of the United States or any foreign country or
    22  jurisdiction.
    23     "Count room."  The room or rooms designated for counting,
    24  wrapping and recording of a table game licensee's authorized
    25  table game receipts.
    26     "Creditor."  The holder of any claim, of whatever character,
    27  against a person, whether secured or unsecured, matured or
    28  unmatured, liquidated or unliquidated, absolute, fixed or
    29  contingent.
    30     "Debt."  Any legal liability, whether matured or unmatured,
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     1  liquidated or unliquidated, absolute, fixed or contingent.
     2     "Department."  The Department of Revenue of the Commonwealth.
     3     "Encumbrance."  A mortgage, security interest, lien or charge
     4  of any nature in or upon property.
     5     "Equity security."  Any voting stock of a corporation or
     6  similar security; any security convertible, with or without
     7  consideration, into a security; the carrying of any warrant or
     8  right to subscribe to or purchase a security or any such warrant
     9  or right; or any security having direct or indirect
    10  participation in the profits of the issuer.
    11     "Establishment."  A single building or two or more buildings,
    12  including an approved hotel, that are physically connected in a
    13  manner deemed appropriate by the Pennsylvania Gaming Control
    14  Board, containing a table game facility, a slot machine facility
    15  or any other facility, as approved by the Pennsylvania Gaming
    16  Control Board.
    17     "Gaming activity."  The dealing, operating, carrying on,
    18  conducting, maintaining or exposing for play any authorized
    19  table game.
    20     "Gross table game revenue."
    21         (1)  The total of wagers received in the playing of an
    22     authorized table game minus the total of:
    23             (i)  Cash or cash equivalents paid out to patrons as
    24         a result of playing an authorized table game.
    25             (ii)  Cash paid to purchase annuities to fund prizes
    26         payable to patrons over a period of time as a result of
    27         playing an authorized table game.
    28             (iii)  Any personal property distributed to a patron
    29         as the result of playing an authorized table game. This
    30         does not include travel expenses, food, refreshments,
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     1         lodging or any other complimentary services or items.
     2         (2)  The term does not include counterfeit money or
     3     tokens, coins or currency of other countries which are
     4     received in the playing of an authorized table game, except
     5     to the extent that they are readily convertible to United
     6     States currency; cash taken in fraudulent acts perpetrated
     7     against a table game licensee for which the table game
     8     licensee is not reimbursed; or cash received as entry fees
     9     for contests or tournaments in which the patrons compete for
    10     prizes.
    11     "Holding company."  Any corporation, association, firm,
    12  partnership, trust or other form of business organization not a
    13  natural person that, directly or indirectly, owns, has the power
    14  or right to control, or has the power to vote any significant
    15  part of the outstanding voting securities of a corporation or
    16  other form of business organization which holds or applies for a
    17  table game license. For the purpose of this definition, in
    18  addition to any other reasonable meaning of the words used, a
    19  holding company indirectly has, holds or owns power, right or
    20  security if it does so through any interest in a subsidiary or
    21  successive subsidiaries, however many subsidiaries may intervene
    22  between the holding company and the table game licensee or an
    23  applicant for a table game license.
    24     "Institutional investor."  Any of the following:
    25         (1)  Any retirement fund administered by a public agency
    26     for the exclusive benefit of Federal, State or local public
    27     employees.
    28         (2)  Any investment company registered under the
    29     Investment Company Act of 1940 (54 Stat. 789, 15 U.S.C. §
    30     80a-1 et seq.).
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     1         (3)  Any collective investment trust organized by banks
     2     under Part Nine of the Rules of the Comptroller of the
     3     Currency.
     4         (4)  Any closed-end investment trust, chartered or
     5     licensed life insurance company or property and casualty
     6     insurance company, banking and other chartered or licensed
     7     lending institution or investment advisor registered under
     8     the Investment Advisors Act of 1940 (54 Stat. 847, 15 U.S.C.
     9     § 80b-1 et seq.).
    10         (5)  Other persons that the Pennsylvania Gaming Control
    11     Board may determine consistent with this act.
    12     "Intermediary company."  Any corporation, association, firm,
    13  partnership, trust or any other form of business organization
    14  other than a natural person which:
    15         (1)  Is a holding company with respect to a corporation
    16     or other form of business organization which holds or applies
    17     for a table game license.
    18         (2)  Is a subsidiary with respect to any holding company.
    19     "Issue," "issued" or "issuance."  In the case of an
    20  application submitted to the Pennsylvania Gaming Control Board
    21  for qualification and authorization to conduct authorized table
    22  games in accordance with this act, the terms refer to the date
    23  on which the Pennsylvania Gaming Control Board approves the
    24  application and on which the application becomes final, binding
    25  and nonappealable and is not subject to a pending legal
    26  challenge.
    27     "Junket."  An arrangement for which an individual is selected
    28  or approved for participation on the basis of the individual's
    29  ability to satisfy a financial qualification or the individual's
    30  likelihood to participate in gaming, to come to a licensed table
    20070H2121B2339                 - 18 -     

     1  game facility for the purpose of gaming and pursuant to which,
     2  and as consideration for which, any or all of the cost of
     3  transportation, food, lodging and entertainment for the
     4  individual is directly or indirectly paid by a table game
     5  licensee or employee or agent thereof.
     6     "Junket enterprise."  Any person, other than the holder of or
     7  an applicant for a table game license, who employs or otherwise
     8  engages the services of a junket representative in connection
     9  with a junket to a table game facility, regardless of whether or
    10  not those activities occur within this Commonwealth.
    11     "Junket representative."  Any natural person who negotiates
    12  the terms of or engages in the referral, procurement or
    13  selection of persons who may participate in any junket to a
    14  licensed table game facility, regardless of whether or not those
    15  activities occur within this Commonwealth.
    16     "License."  Any license issued in accordance with or required
    17  under this act.
    18     "License or registration fee."  Any moneys required under
    19  this act or by law or regulation to be paid for the issuance or
    20  renewal of a table game license, a supplier license, a
    21  manufacturer license, service industry license or any other
    22  license issued under this act.
    23     "Licensed entity."  A table game licensee, manufacturer
    24  licensee, supplier licensee, service industry licensee or any
    25  other person licensed by the Pennsylvania Gaming Board under
    26  this act.
    27     "Licensed facility."  The physical land based location and
    28  associated areas at which a licensed gaming entity is authorized
    29  to place and operate slot machines pursuant to and in accordance
    30  with 4 Pa.C.S. Pt. II (relating to gaming) and to conduct and
    20070H2121B2339                 - 19 -     

     1  operate authorized table games under this act.
     2     "Licensed gaming entity" or "slot machine licensee."  A
     3  person that holds a slot machine license pursuant to 4 Pa.C.S.
     4  Pt. II (relating to gaming).
     5     "Licensed table game entity."  A licensed gaming entity that
     6  has been approved for and that holds a table game license under
     7  this act.
     8     "Licensed table game facility."  The physical location and
     9  associated areas, including areas in an approved hotel, of a
    10  licensed facility where authorized table games are conducted by
    11  a licensed table game entity.
    12     "Licensee."  A person who has been approved for and who holds
    13  a table game license or any other license issued under this act.
    14     "Manufacturer."  A person who manufactures, builds, rebuilds,
    15  fabricates, assembles, produces, programs, designs or otherwise
    16  makes modification to table game equipment, apparatuses, devices
    17  and supplies for use in or play of authorized table games in
    18  this Commonwealth.
    19     "Manufacturer license."  A license issued by the Pennsylvania
    20  Gaming Control Board in accordance with this act that authorizes
    21  a manufacturer to conduct or engage in business in this
    22  Commonwealth.
    23     "Manufacturer licensee."  A person who has been approved for
    24  and who holds a manufacturer license.
    25     "Municipality."  A county, city, borough, incorporated town
    26  or township.
    27     "Occupation permit."  A permit authorizing an individual to
    28  be employed or work as a table game employee at a licensed table
    29  game facility.
    30     "Operation."  The conduct of authorized table games as
    20070H2121B2339                 - 20 -     

     1  authorized under this act.
     2     "Operation certificate."  A certificate issued by the
     3  Pennsylvania Gaming Control Board that certifies that the
     4  operation of a licensed table game facility conforms to the
     5  requirements of this act and regulations promulgated pursuant to
     6  this act.
     7     "Party."  The Pennsylvania Gaming Control Board, the Bureau
     8  of Investigation and Enforcement or any licensee, permittee,
     9  registrant, applicant or any person appearing of record for any
    10  licensee, permittee, registrant or applicant in any proceeding
    11  before the Pennsylvania Gaming Control Board or in any
    12  proceeding for judicial review of any action, decision or order
    13  of the Pennsylvania Gaming Control Board.
    14     "Patron."  A person who plays an authorized table game at a
    15  licensed table game facility in accordance with this act.
    16     "Permittee."  An individual who holds an occupation permit
    17  issued in accordance with this act.
    18     "Person."  Any natural person, corporation, foundation,
    19  organization, business trust, estate, limited liability company,
    20  licensed corporation, trust, partnership, limited liability
    21  partnership, association or any other form of legal business
    22  entity.
    23     "Principal employee."  Any table game key employee who is an
    24  officer or director or who, by reason of remuneration or of a
    25  policymaking position or other criteria as may be established by
    26  the Pennsylvania Gaming Control Board by regulation, holds or
    27  exercises authority that, in the judgment of the Pennsylvania
    28  Gaming Control Board, is sufficiently related to the operation
    29  of a licensed table game facility so as to require
    30  qualification.
    20070H2121B2339                 - 21 -     

     1     "Property."  Real property, tangible and intangible personal
     2  property and rights, claims and franchises of every nature.
     3     "Publicly traded company."  Any corporation or other legal
     4  entity, except a natural person, to which any of the following
     5  apply:
     6         (1)  Has one or more classes of security registered
     7     pursuant to section 12 of the Securities Exchange Act of 1934
     8     (48 Stat. 881, 15 U.S.C. § 78a et seq.).
     9         (2)  Is an issuer subject to section 15(d) of the
    10     Securities Exchange Act of 1934 (48 Stat. 881, 15 U.S.C. §
    11     78a et seq.).
    12         (3)  Has one or more classes of securities traded in any
    13     open market in any foreign jurisdiction or regulated pursuant
    14     to a statute of any foreign jurisdiction that the
    15     Pennsylvania Gaming Control Board determines to be
    16     substantially similar to either or both of the aforementioned
    17     statutes.
    18     "Qualification" or "qualified."  A determination or finding
    19  by the Pennsylvania Gaming Control Board that a person, other
    20  than a person specifically required to obtain a license, permit
    21  or registration under this act, meets the eligibility
    22  requirements for a license under this act and the nature of the
    23  person's employment or association with or ownership interest in
    24  an applicant or table game licensee will require the person to
    25  qualify for a license under this act.
    26     "Qualified licensed facility."  A licensed facility under 4
    27  Pa.C.S. Pt. II (relating to gaming) that is approved by the
    28  Pennsylvania Gaming Control Board to operate authorized table
    29  games under this act.
    30     "Registrant."  A person who is registered with the
    20070H2121B2339                 - 22 -     

     1  Pennsylvania Gaming Control Board pursuant to this act.
     2     "Registration."  Any requirement, other than one that
     3  requires a license or permit, that requires a person to qualify
     4  and register as a prerequisite to the conduct of a particular
     5  business or activity specified in this act.
     6     "Regulated complimentary service account."  An account
     7  maintained by a table game licensee on a regular basis that
     8  itemizes complimentary services and includes, without
     9  limitation, a listing of the cost of junket activities and any
    10  other service provided by a table game licensee at no cost or at
    11  a reduced price.
    12     "Resident."  Any individual domiciled and living within this
    13  Commonwealth having a present intent to remain within this
    14  Commonwealth for a period of time and manifesting the
    15  genuineness of that intent by establishing an ongoing physical
    16  presence within this Commonwealth, together which indicate that
    17  the individual's presence within this Commonwealth is not merely
    18  transitory in nature.
    19     "Restricted table game area" or "restricted area."  The
    20  cashier's cage, the soft count room, the hard count room, the
    21  interior of table game pits, the surveillance room and catwalk
    22  areas, and any other area specifically designated by the
    23  Pennsylvania Gaming Control Board as a restricted area in a
    24  table game licensee's operation certificate.
    25     "Security."  Any instrument evidencing a direct or indirect
    26  beneficial ownership or creditor interest in a corporation or
    27  other form of business organization, including, but not limited
    28  to, common or preferred stock, bonds, mortgages, debentures,
    29  security agreements, notes, warrants, options and rights.
    30     "Slot machine license."  A license issued to an applicant to
    20070H2121B2339                 - 23 -     

     1  place and operate slot machines in a licensed facility pursuant
     2  to 4 Pa.C.S. Pt. II (relating to gaming).
     3     "Statement of compliance."  A statement by the Pennsylvania
     4  Gaming Control Board that may be issued to an applicant for a
     5  license under this act that indicates satisfactory completion of
     6  a particular stage or stages of the application or license
     7  consideration process, and that states that unless there is a
     8  change of any material circumstance pertaining to the particular
     9  stage or stages of license consideration involved in the
    10  statement, the applicant has complied with the requirements of
    11  this act for licensure and is therefore approved for license
    12  qualification to the stage or stages for which the statement has
    13  been issued.
    14     "Subsidiary."  Any corporation, any significant part of whose
    15  outstanding equity securities are owned, subject to a power or
    16  right of control, or held with power to vote, by a holding
    17  company or an intermediary company or a significant interest in
    18  a firm, association, partnership, trust or other form of
    19  business organization, not a natural person, that is owned,
    20  subject to a power or right of control, or held with power to
    21  vote, by a holding company or an intermediary company.
    22     "Supplier."  A person who sells, leases, offers or otherwise
    23  provides, distributes table game devices, equipment, apparatuses
    24  or supplies or who repairs or services any table game devices,
    25  equipment, apparatus or supplies for use or play of authorized
    26  table games in this Commonwealth.
    27     "Supplier license."  A license issued by the Pennsylvania
    28  Gaming Control Board authorizing a supplier to provide products
    29  or services related to table games to a table game licensee.
    30     "Supplier licensee."  A person who holds a supplier license.
    20070H2121B2339                 - 24 -     

     1     "Table game device," "equipment," "apparatus" or "supplies."
     2  Any cards, dice, chips, shufflers, tiles, dominoes, wheel, drop
     3  boxes or any electronic, electrical, mechanical or computerized
     4  contrivance or device, mechanism, machine, equipment or related
     5  supplies used or consumed in operation or connection with
     6  authorized table games at a licensed table game facility.
     7     "Table game employee."  Any natural person employed in the
     8  operation of a licensed table game facility, including, but not
     9  limited to, boxmen, dealers or croupiers, floormen, device or
    10  equipment technicians, security employees, count room personnel,
    11  cage personnel, collection personnel, surveillance personnel and
    12  data processing personnel, or any other natural person whose
    13  employment duties predominantly involve the maintenance or
    14  operation of table games or table game devices, equipment or
    15  apparatuses and assets associated therewith or who, in the
    16  judgment of the Pennsylvania Gaming Control Board, is so
    17  regularly required to work in a restricted table game area that
    18  issuance of an occupation permit as a table game employee is
    19  appropriate.
    20     "Table game key employee."  Any natural person employed in
    21  the operation of a licensed table game facility in a supervisory
    22  capacity or empowered to make discretionary decisions that
    23  regulate table game facility operations, including, but not
    24  limited to, pit bosses, shift bosses, credit supervisors,
    25  cashier supervisors, table game facility managers and assistant
    26  managers or supervisors of security employees, or any other
    27  natural person empowered to make discretionary decisions,
    28  including entertainment directors, and food and beverage
    29  directors or any other employee designated by the Pennsylvania
    30  Gaming Control Board for reasons consistent with the policies of
    20070H2121B2339                 - 25 -     

     1  this act.
     2     "Table game operations" or "table game activities."  The
     3  exposing for play of one or more authorized table games that are
     4  dealt, operated, carried on, conducted or maintained for
     5  commercial gain in a licensed table game facility.
     6     "Table game service employee."  A natural person employed to
     7  perform services or duties in a licensed table game facility or
     8  restricted area of the licensed facility but who is not included
     9  within the definition of "table game employee," "table game key
    10  employee" or "security employee" as those terms are defined in
    11  this section.
    12     "Table game service industry."  Any form of enterprise which
    13  provides applicants or table games licensees with goods or
    14  services regarding the realty, construction, maintenance, or
    15  business of a proposed or existing licensed table game facility
    16  on a regular or continuing basis, including, without limitation,
    17  junket enterprises, security businesses, gaming schools, garbage
    18  haulers, maintenance companies, food purveyors, and construction
    19  companies, or any other such enterprise which purchases goods or
    20  services from or which does any other business with licensed
    21  table game facilities on a regular or continuing basis.
    22     "Table game service industry license."  A table game service
    23  industry that obtains a table game service industry license
    24  under this act.
    25     "Transfer."  The sale and every other method, direct or
    26  indirect, of disposing of or parting with property or with an
    27  interest in property, or with the possession of property, or of
    28  fixing a lien upon property or upon an interest in property,
    29  absolutely or conditionally, voluntarily or involuntarily, by or
    30  without judicial proceedings, as a conveyance, sale, payment,
    20070H2121B2339                 - 26 -     

     1  pledge, mortgage, lien, encumbrance, gift, security or
     2  otherwise. The reduction of a security interest in property
     3  delivered to a corporation shall be deemed a transfer suffered
     4  by the corporation.
     5     "Wager."  A sum of money, thing or representative of value
     6  risked on an uncertain outcome of the play of an authorized
     7  table game.
     8                             CHAPTER 2
     9                       TABLE GAMES AUTHORIZED
    10  Section 201.  Authorization to conduct table games.
    11     Notwithstanding any other provision of law to the contrary,
    12  the operation of table games and the system of wagering
    13  associated with table games are hereby authorized to the extent
    14  that table games are conducted in accordance with this act and
    15  guidelines, policy statements, rules or regulations adopted and
    16  promulgated by the board pursuant to this act.
    17  Section 202.  Authorized locations for operation.
    18     Table games authorized pursuant to this act shall only be
    19  operated by a licensed gaming entity that holds a license to
    20  conduct slot machine gaming at a licensed facility pursuant to 4
    21  Pa.C.S. Pt. II (relating to gaming).
    22  Section 203.  Commencement of table game operations.
    23     Notwithstanding any provision of this act to the contrary, a
    24  license to operate authorized table games issued under this act
    25  shall not be construed to permit the operation of authorized
    26  table games until one year subsequent to the operation of slot
    27  machines by a licensed gaming entity at a licensed facility.
    28  Section 204.  Applicability.
    29     This act and any guidelines, rules or regulations promulgated
    30  pursuant to this act shall apply to all persons licensed,
    20070H2121B2339                 - 27 -     

     1  permitted or registered by the board to conduct authorized table
     2  games or to otherwise participate in table gaming authorized
     3  under this act.
     4                             CHAPTER 3
     5                          DUTIES OF BOARD
     6  Section 301.  General powers.
     7     In addition to general jurisdiction over all gaming and
     8  related activities conferred upon the board under 4 Pa.C.S. Pt.
     9  II (relating to gaming), the board shall be responsible for
    10  ensuring integrity in the conduct, establishment and operation
    11  of authorized table games and shall have overall jurisdiction
    12  over every aspect of the authorization, conduct, establishment
    13  and operation of table games in this Commonwealth.
    14  Section 302.  Powers and duties of board.
    15     The board shall implement the provisions of this act and
    16  shall adopt any guidelines or policy statements and promulgate
    17  any regulations necessary to carry out the provisions of this
    18  act. The board shall have the duty, without limitation, to:
    19         (1)  Hear and decide in reasonable order all applications
    20     for a table game license, manufacturer license, supplier
    21     license and any other license, registration or permit
    22     authorized under this act.
    23         (2)  At its discretion issue, approve, renew, revoke,
    24     suspend, condition or deny issuance or renewal of any
    25     license, permit or registration or any other qualification
    26     authorized under this act. The board may deny, revoke,
    27     condition, suspend or refuse to renew a license if it finds
    28     that an applicant or a licensee or an officer, employee or
    29     agent of an applicant or licensee has furnished false or
    30     misleading information to the board or failed to comply with
    20070H2121B2339                 - 28 -     

     1     this act or any guidelines, policy statements, rules or
     2     regulations of the board adopted and promulgated pursuant to
     3     this act or under 4 Pa.C.S. (relating to gaming) and that it
     4     would be in the public interest to deny, deny the renewal,
     5     revoke, condition or suspend the license, permit or
     6     registration.
     7         (3)  Require background investigations on prospective or
     8     existing table game licensees, manufacturer licensees,
     9     supplier licensees, permittees, registrants or other persons
    10     holding a controlling interest in any prospective or existing
    11     licensee, permittee or registrant or other person required to
    12     be qualified for licensure, permitting, registration or
    13     qualification under this act.
    14         (4)  Receive criminal history record information from the
    15     Pennsylvania State Police and other law enforcement agencies.
    16     Notwithstanding any other provision of law to the contrary,
    17     the board is hereby authorized to receive criminal history
    18     record information which is otherwise protected under the
    19     provisions of 18 Pa.C.S. Ch. 91 (relating to criminal history
    20     record information).
    21         (5)  The board is hereby designated as a law enforcement
    22     agency for the purpose of 18 Pa.C.S. Ch. 91 and any other
    23     statute of this Commonwealth or other jurisdiction providing
    24     for the sharing, transmittal or receipt of information to or
    25     from law enforcement agencies.
    26         (6)  Restrict access to confidential information in the
    27     possession of the board which has been obtained under this
    28     act and assure that the confidentiality of information
    29     received by it is maintained and protected. Records shall be
    30     retained by the board for seven years.
    20070H2121B2339                 - 29 -     

     1         (7)  At its discretion, to suspend, revoke, condition or
     2     deny the issuance or renewal of any license, permit or
     3     registration or levy fines or impose sanctions for any
     4     violation of this act.
     5         (8)  Require each applicant for a license, permit,
     6     registration or qualification to submit to fingerprinting by
     7     the Pennsylvania State Police. The Pennsylvania State Police
     8     shall submit fingerprint images to the Federal Bureau of
     9     Investigation to verify the identity of the applicant and
    10     obtain criminal history record information.
    11         (9)  Determine the suitability of table game service
    12     industries, including junket enterprises, junket
    13     representatives or any other person who furnishes or seeks to
    14     furnish to an authorized table game licensee, directly or
    15     indirectly, any goods, service or property related to the
    16     conduct, play and operation of table games and related
    17     activities or through any arrangement under which a junket
    18     enterprise, junket representative or any like person receives
    19     payment based, directly or indirectly, on earnings, profits
    20     or receipts from the conduct, play or operation of table
    21     games. The board may require that a junket enterprise, junket
    22     representative or like person comply with the requirements of
    23     this act and the regulations of the board and may prohibit
    24     the person from furnishing the goods, service or property.
    25         (10)  Conduct all hearings pertaining to administrative
    26     violations of this act and regulations promulgated under this
    27     act.
    28         (11)  Collect all application, license, permit and
    29     registration fees and any other fees established by
    30     regulation of the board.
    20070H2121B2339                 - 30 -     

     1         (12)  Levy and collect penalties for the violation of
     2     this act and the regulations promulgated under this act.
     3         (13)  Establish times as are necessary for agents of the
     4     board to be present at a licensed table game facility for the
     5     purpose of certifying the revenue, receiving complaints from
     6     the public relating to the conduct of authorized table games,
     7     examining records of revenues and procedures, and conducting
     8     periodic reviews of table game and facility operations for
     9     the purpose of evaluating current performance and compliance
    10     with the requirements of this act and regulations promulgated
    11     pursuant to this act.
    12         (14)  Refer to the Pennsylvania State Police or the
    13     Attorney General for investigation and prosecution of any
    14     evidence of a suspected or alleged violation of this act or
    15     the regulations promulgated under this act.
    16         (15)  Review and rule upon any complaint by a table game
    17     licensee regarding any investigative procedure of the bureau
    18     or the Pennsylvania State Police, that is unnecessarily
    19     disruptive of table game facility operations. The need to
    20     inspect and investigate shall be presumed at all times. The
    21     disruption of a table game licensee's operations shall be
    22     proved by clear and convincing evidence, such evidence shall
    23     establish the following:
    24             (i)  The procedures had no reasonable law enforcement
    25         purpose.
    26             (ii)  The procedures were so disruptive as to
    27         unreasonably inhibit table game facility operations. The
    28         board may seek advice from the Attorney General when
    29         reviewing any investigative procedures or practices of
    30         the Pennsylvania State Police.
    20070H2121B2339                 - 31 -     

     1         (16)  Review applications for licenses to operate
     2     authorized table games.
     3         (17)  Prescribe and require periodic financial reporting
     4     and internal controls for all table game facilities.
     5         (18)  Require each table game licensee to transmit to the
     6     board an audit of the financial condition of the table game
     7     licensee's total operations within 30 days after the end of
     8     each quarter of each fiscal year. All audits shall be
     9     conducted by a certified public accountant in a manner and
    10     form prescribed by the board. Each certified public
    11     accountant shall be licensed in this Commonwealth. The
    12     compensation for each certified public accountant shall be
    13     paid directly by the licensee to the certified public
    14     accountant.
    15         (19)  Establish and enforce prescribed hours of operation
    16     of authorized table games, notwithstanding that authorized
    17     table games may be operated on any day of the year in order
    18     to meet the needs of patrons and to promote competition.
    19         (20)  Require that each licensed table game entity
    20     prohibit individuals under 21 years of age from playing or
    21     participating in the play of authorized table games.
    22         (21)  Require each applicant for a table game license to
    23     provide detailed site plans of its proposed table game
    24     facility, which the board shall review and approve to
    25     determine the adequacy of the proposed internal and external
    26     security and surveillance measures proposed for the facility.
    27     Applicants shall cooperate with the board in making any
    28     board-recommended modifications to the site plans and will
    29     assure that the site plans, as modified and approved by the
    30     board, are implemented.
    20070H2121B2339                 - 32 -     

     1         (22)  Require table game licensees to provide onsite
     2     facilities for use by the board and the bureau and other
     3     appropriate persons to facilitate their ability to perform
     4     their respective responsibilities under this act.
     5         (23)  Consult with members of the Pennsylvania State
     6     Police, the Office of Attorney General and other persons it
     7     deems necessary for advice regarding various aspects of the
     8     powers and duties imposed on the board under this act and its
     9     jurisdiction over the operation of authorized table games at
    10     licensed facilities.
    11         (24)  Adopt regulations for the conduct of all authorized
    12     table games proposed to be operated by a table game licensee.
    13         (25)  Investigate applicants for a license, permit or
    14     registration, and other persons to determine qualification
    15     and eligibility for licensure, permitting and registration.
    16         (26)  Require applicants for the issuance or renewal of a
    17     table game license, manufacturer license, supplier license or
    18     service industry license to provide the board with a
    19     statement listing the names and titles of all public
    20     officials who, directly or indirectly, own any financial or
    21     beneficial interest in, are the creditors of or hold any debt
    22     instrument issued by, or hold or have any interest in any
    23     contractual or service relationship with the applicant or
    24     table game licensee, manufacturer licensee or supplier
    25     licensee. The list shall be updated annually.
    26         (27)  Not issue or renew a license, permit or
    27     registration unless it is satisfied that the applicant is a
    28     person of good character, honesty and integrity and is a
    29     person whose prior activities, criminal record, if any,
    30     reputation, habits and associates do not pose a threat to the
    20070H2121B2339                 - 33 -     

     1     public interest or the effective regulation and control of
     2     table game operations in this Commonwealth or create or
     3     enhance the danger of unsuitable, unfair or illegal
     4     practices, methods and activities in the conduct of table
     5     game operations or the carrying on of the business and
     6     financial arrangements incidental to table game operations.
     7         (28)  Submit an annual report of its licensing and
     8     regulatory activities to the General Assembly by January 31
     9     of each year.
    10         (29)  Not issue a table game license to a licensed gaming
    11     entity that is also a holder of a Category 1 slot machine
    12     license if it determines that the licensed gaming entity is
    13     not in full compliance with any of the following:
    14             (i)  The provisions of its application for a slot
    15         machine license as approved by the board.
    16             (ii)  The provisions of its application for a
    17         thoroughbred or harness horse racing license as approved
    18         by either the State Horse Racing Commission or State
    19         Harness Racing Commission, as the case may be.
    20             (iii)  The requirements of 4 Pa.C.S. § 1302 (relating
    21         to Category 1 slot machine license) and section 1303
    22         (relating to additional Category 1 slot machine license
    23         requirements).
    24  Section 303.  Regulatory powers.
    25     The board shall adopt and promulgate regulations to carry out
    26  the provisions of this act. The regulations shall include
    27  specific provisions that:
    28         (1)  Prescribe the methods and forms of application that
    29     an applicant shall follow and complete prior to consideration
    30     of an application for a license, permit or registration.
    20070H2121B2339                 - 34 -     

     1         (2)  Prescribe the methods, procedures and forms for
     2     delivery of information that may be required by the board
     3     under this act.
     4         (3)  Define and limit the areas of operation, the rules
     5     of authorized games, odds and the method of operation of
     6     authorized games.
     7         (4)  Prescribe the grounds and procedures for the denial,
     8     revocation, suspension of or refusal to renew licenses,
     9     permits or registrations.
    10         (5)  Establish the minimum level of insurance to be
    11     maintained with respect to a licensed table gaming facility.
    12         (6)  Prescribe standards to govern the conduct of all
    13     authorized table games.
    14         (7)  Establish standards for table game devices,
    15     equipment, apparatuses and supplies, including electronic or
    16     computerized table game devices.
    17         (8)  Establish standards to govern the operation of
    18     licensed table game facilities, including the maintenance of
    19     financial books, records and audits.
    20         (9)  Designate appropriate classifications of personnel
    21     to be employed in the operation of table games at a licensed
    22     table game facility and establish appropriate licensing,
    23     registration and permitting standards within each
    24     classification.
    25         (10)  Regulate the practices and procedures for
    26     negotiable instrument transactions involving patrons of table
    27     games, including limitations on the circumstances and amounts
    28     of the transactions, including credit transactions, and the
    29     establishment of forms and procedures for negotiable
    30     instrument transactions, redemptions and consolidations.
    20070H2121B2339                 - 35 -     

     1         (11)  Prescribe for authorized table game operations
     2     procedures, forms and methods of management controls,
     3     including employee and supervisory charts or organizational
     4     structure, alarm and other electrical or visual security
     5     measures. The board shall grant an applicant a table game
     6     license discretion concerning the organization and
     7     responsibilities of management personnel who are not directly
     8     involved in the operation or supervision of authorized table
     9     games.
    10         (12)  Provide for a minimum uniform standard of
    11     accountancy methods, procedures and forms, a uniform code of
    12     accounts and accounting classifications and other standard
    13     operating procedures as may be necessary to ensure
    14     consistency, comparability and effective disclosure of all
    15     financial information, including calculations of percentages
    16     of profit by authorized table games, tables, apparatuses and
    17     devices.
    18         (13)  Require quarterly financial reports and the form of
    19     financial reporting, and an annual audit prepared by a
    20     certified public accountant licensed to do business in this
    21     Commonwealth, attesting to the financial condition of a table
    22     game licensee and disclosing whether the accounts, records
    23     and control procedures examined are maintained by the table
    24     game licensee as required by this act and the regulations
    25     promulgated under this act.
    26         (14)  Prescribe the qualifications of and the conditions
    27     pursuant to which engineers, accountants, architects or any
    28     agents or representatives of such persons and others shall be
    29     permitted to practice before the board or to submit materials
    30     on behalf of any applicant or licensee. No member of the
    20070H2121B2339                 - 36 -     

     1     General Assembly, nor any firm with which a member of the
     2     General Assembly is associated, shall be permitted to appear
     3     or practice in any capacity whatsoever before the board
     4     regarding any matter whatsoever, nor shall any immediate
     5     family member of an executive level State employee or of a
     6     member of the General Assembly be permitted to so practice or
     7     appear in any capacity whatsoever before the board regarding
     8     any matter whatsoever.
     9         (15)  Provide minimum procedures for the exercise of
    10     effective control over the internal fiscal affairs of a table
    11     game licensee, including provisions for the safeguarding of
    12     assets and revenues, the recording of cash and evidence of
    13     indebtedness, and the maintenance of reliable records,
    14     accounts, and reports of transactions, operations and events,
    15     including reports to the board.
    16         (16)  Govern advertising by and the advertisement of
    17     authorized table games by table game licensees, their
    18     employees and agents, with the view toward ensuring that
    19     advertisements are in no way deceptive, misleading or
    20     designed in a manner to unduly induce, entice or otherwise
    21     cause a person to play an authorized table game.
    22         (17)  Prescribe the standards and procedures for
    23     quarterly reporting of professional services information.
    24     Each holder of a table game license or person acting on
    25     behalf of a table game licensee shall submit an annual report
    26     to the board of each entity that furnishes professional
    27     services to the table game license holder.
    28         (18)  Provide for the establishment of a list of persons
    29     that a table game licensee may exclude or eject from a
    30     licensed table game facility, and the establishment of a list
    20070H2121B2339                 - 37 -     

     1     of persons who may self-exclude themselves from a licensed
     2     table game facility. The lists authorized in this paragraph
     3     shall conform with the standards, criteria and requirements
     4     of 4 Pa.C.S. §§ 1514 (relating to regulation requiring
     5     exclusion of certain persons), 1515 (relating to repeat
     6     offenders excludable from licensed gaming facility) and 1516
     7     (relating to list of persons self excluded from gaming
     8     activities).
     9         (19)  Establish any other procedure, standard, condition
    10     or requirement the board deems necessary to ensure the
    11     integrity of table game operations and which effectuate the
    12     provisions of this act.
    13  Section 304.  Denials and sanctions.
    14     (a)  General rule.--The board shall ensure, to the extent
    15  required by this act, that licenses, permits or registrations
    16  shall not be issued to nor held by, nor shall there be any
    17  material involvement, directly or indirectly, with the licensed
    18  table game operation or the ownership of the licensed table game
    19  operation by unqualified or disqualified persons whose
    20  operations are conducted in a manner that is inconsistent with
    21  or do not conform with the requirements of this act or
    22  regulations promulgated pursuant to this act.
    23     (b)  Enforcement.--In implementing and enforcing this act,
    24  the board shall have the power and authority to:
    25         (1)  Deny any application for a license, permit or
    26     registration.
    27         (2)  Limit, condition or restrict any license, permit,
    28     registration or approval.
    29         (3)  Suspend or revoke any license, permit, registration
    30     or approval.
    20070H2121B2339                 - 38 -     

     1         (4)  Impose a penalty on any person licensed, permitted,
     2     registered or previously qualified for any cause deemed
     3     reasonable by the board pursuant to regulations promulgated
     4     by the board.
     5     (c)  Definitions.--As used in this section, the following
     6  words and phrases shall have the meanings given to them in this
     7  subsection:
     8     "Disqualified person."  Any person found by the board to be
     9  disqualified pursuant to the criteria set forth in section
    10  602(b).
    11     "Unqualified person."  Any person who is found by the board
    12  to be unqualified pursuant to section 602(a).
    13  Section 305.  Annual report, study and recommendations.
    14     (a)  Annual report required.--Twelve months after the
    15  commencement of table game operations at licensed table game
    16  facilities and on December 31 of every calendar year thereafter,
    17  the board shall make an annual report to the Governor and the
    18  General Assembly. The report shall be filed with the Governor
    19  and submitted to the Chief Clerk of the Senate and the Chief
    20  Clerk of the House of Representatives and to the chairmen of the
    21  legislative committees that have oversight of gambling-related
    22  issues on or before January 31 of the year following the year
    23  that the report covers. The report shall include an account of
    24  the board's actions, its financial position, the results of
    25  table game operation under this act and any recommendations for
    26  legislation that the board considers advisable. The report shall
    27  also include the information required under subsections (b) and
    28  (c). The report shall include, but not be limited to, the
    29  following:
    30         (1)  The number and win per table game at each licensed
    20070H2121B2339                 - 39 -     

     1     table game facility during the previous year.
     2         (2)  All taxes, fees, fines and other revenue collected
     3     and revenue disbursed during the previous year. The board
     4     shall collaborate with the State Treasurer and the department
     5     to carry out the requirements of this paragraph.
     6         (3)  A descriptive summary of the board's diversity
     7     activities, including, but not limited to, contracting and
     8     subcontracting, employment data and recruitment and retention
     9     programs of the board which are designed to promote and
    10     ensure diversity.
    11         (4)  A descriptive summary of licensed table game
    12     entities' diversity activities for the previous year,
    13     including, but not limited to:
    14             (i)  Employment and salary information, including any
    15         recruitment and retention programs.
    16             (ii)  Minority-owned business enterprises and women-
    17         owned business enterprises contracting and subcontracting
    18         data.
    19             (iii)  Minority and women facility ownership and
    20         participation data.
    21             (iv)  Any other information the board deems
    22         appropriate.
    23         (5)  Administrative and operational expenses and costs of
    24     the board.
    25         (6)  Administrative hearings or any other proceedings
    26     convened by the board relating to the approval, issuance,
    27     denial, conditioning, renewal or refusal to renew, suspension
    28     or revocation of a table game license.
    29         (7)  Additional information the board may deem necessary
    30     and appropriate.
    20070H2121B2339                 - 40 -     

     1     (b)  Report by table game licensee.--
     2         (1)  Each table game licensee shall annually have a study
     3     conducted on minors and unauthorized gaming and compile all
     4     of the following information for the table game facility that
     5     the licensee is licensed to operate:
     6             (i)  The number of minors who were denied entry into
     7         the table game facility.
     8             (ii)  The number of minors who were physically
     9         escorted from the premises of the table game facility.
    10             (iii)  The number of minors who were detected
    11         participating in gambling games other than slot machines
    12         and the number of minors who were detected using slot
    13         machines.
    14             (iv)  The number of minors who were taken into
    15         custody by a law enforcement agency on the premises of
    16         the table game facility.
    17             (v)  The number of minors who were detected illegally
    18         consuming alcohol on the premises of the table game
    19         facility.
    20             (vi)  The number of disassociated persons who were
    21         denied entry into the table game facility.
    22             (vii)  A summary of the action taken by the table
    23         game licensee in resolution of incidents under
    24         subparagraphs (i), (ii), (iii), (iv), (v) and (vi),
    25         including any action, resolution or disposition of any
    26         violations of section 2504.
    27         (2)  As used in this subsection, the term "minor" shall
    28     mean an individual who is under 21 years of age.
    29     (c)  Recommendations.--
    30         (1)  The board shall conduct continuous study of the
    20070H2121B2339                 - 41 -     

     1     operation and administration of gaming laws of other
     2     jurisdictions, available literature, Federal laws which may
     3     affect the operation of table games in this Commonwealth, and
     4     the reaction of Pennsylvanians to existing and potential
     5     features of authorized table games under this act. In
     6     conducting such study, it shall be the duty of the board to:
     7             (i)  Determine any defects in this act or in the
     8         regulations promulgated under this act.
     9             (ii)  Compile and submit to the General Assembly
    10         recommendations for changes in this act to prevent
    11         abuses, guard against the use of this act as a cloak for
    12         the carrying on of illegal gambling or other criminal
    13         activities.
    14             (iii)  Ensure that this act and the regulations
    15         promulgated under this act shall be in a form and be
    16         administered to serve the true purposes of this act.
    17         (2)  The board shall report immediately to the Governor
    18     and the General Assembly any matters which, in its judgment,
    19     may require immediate changes in the laws of this
    20     Commonwealth in order to prevent abuses and evasions of this
    21     act or any regulations promulgated under this act, or to
    22     rectify undesirable conditions in connection with the
    23     administration, operation and regulation of authorized table
    24     games.
    25     (d)  Consolidation of reporting.--Subsequent to its
    26  submission of the initial annual report under subsection (a),
    27  the board may consolidate the information required to be
    28  reported under this section with the annual report it is
    29  required to submit pursuant to 4 Pa.C.S. § 1211 (relating to
    30  reports of board). Any consolidated report shall accurately and
    20070H2121B2339                 - 42 -     

     1  separately reflect the administration, enforcement, operation
     2  and conduct of authorized table games from the administration,
     3  enforcement, operation and conduct of slot machine gaming.
     4  Section 306.  Application hearing process.
     5     The board's consideration and resolution of all applications
     6  for a license, permit or registration under this act shall be
     7  conducted in accordance with procedures adopted by order of the
     8  board. Notwithstanding the requirements of 2 Pa.C.S. §§ 504
     9  (relating to hearing and record) and 505 (relating to evidence
    10  and cross-examination), the procedures adopted by order of the
    11  board shall provide parties before it with a documentary
    12  hearing, but the board may, at its discretion, resolve disputed
    13  material facts without conducting an oral hearing when
    14  constitutionally permissible.
    15  Section 307.  Board minutes and records.
    16     The board shall make and keep records of all proceedings held
    17  at public meetings of the board. A verbatim transcript of public
    18  meetings of the board shall be prepared by the board upon the
    19  request of any board member or upon the request of any other
    20  person and the payment by that person of the costs of
    21  preparation.
    22  Section 308.  Maintenance of information.
    23     (a)  Applicant information.--
    24         (1)  The board shall maintain a list of all applicants
    25     for licenses, permits and registrations under this act
    26     together with a record of all actions taken with respect to
    27     the applicants. The list and record shall be open to public
    28     inspection.
    29         (2)  The applicant information required under paragraph
    30     (1) relative to any applicant whose license, permit or
    20070H2121B2339                 - 43 -     

     1     registration is denied, revoked or not renewed by the board
     2     shall be removed from the list after seven years from the
     3     date of the denial, revocation or refusal to renew.
     4         (3)  The board shall maintain other files, records and
     5     information as it may deem necessary and appropriate.
     6     (b)  Confidentiality.--Information obtained in the
     7  application process in accordance with this act and regulations
     8  promulgated under this act, the report of an applicant's
     9  background investigation and personal information furnished to
    10  or obtained by the board, the bureau or the Pennsylvania State
    11  Police from any source shall be considered confidential and
    12  shall be withheld from public disclosure in whole and in part,
    13  except that any information shall be released upon the lawful
    14  order of a court of competent jurisdiction or, with the approval
    15  of the Attorney General, to an authorized law enforcement agency
    16  or shall be released to the public, in whole or in part, to the
    17  extent that the release is requested by the applicant and does
    18  not otherwise contain confidential information about another
    19  person. The board may not require any applicant to waive any
    20  confidentiality provided for in this subsection as a condition
    21  for the approval, issuance or renewal of a license, permit or
    22  registration or any other action of the board. Any person who
    23  violates this subsection shall be administratively disciplined
    24  by discharge, suspension or other form of disciplinary action as
    25  the board deems appropriate.
    26  Section 309.  Temporary regulations.
    27     Notwithstanding any other provision of law to the contrary,
    28  in order to facilitate the prompt implementation of this act,
    29  the board shall have the power and authority to promulgate,
    30  adopt and use temporary regulations to implement this act. The
    20070H2121B2339                 - 44 -     

     1  temporary regulations shall be published in the Pennsylvania
     2  Bulletin and shall be subject to review pursuant to sections
     3  204(b) and 301(10) of the act of October 15, 1980 (P.L.950,
     4  No.164), known as the Commonwealth Attorneys Act. The temporary
     5  regulations shall not be subject to sections 201 through 205 of
     6  the act of July 31, 1968 (P.L.769, No.240), referred to as the
     7  Commonwealth Documents Law, or the act of June 25, 1982
     8  (P.L.633, No.181), known as the Regulatory Review Act. The
     9  temporary regulations promulgated by the board shall be
    10  effective for a period of not more than three years from the
    11  effective date of this act or upon the promulgation and
    12  publication of permanent regulations by the board as generally
    13  provided by law, if sooner than three years. The authority of
    14  the board to use temporary regulations shall expire two years
    15  from the effective date of this act.
    16  Section 310.  Diversity goals and requirements of board.
    17     (a)  Intent.--It is the intent of the General Assembly that
    18  the board promote and ensure diversity in all aspects of the
    19  table game activities authorized under this act. The board shall
    20  work to enhance the representation of diverse groups:
    21         (1)  in the work of the board;
    22         (2)  in the ownership, participation and operation of
    23     licensed table game entities and licensed table game
    24     facilities in this Commonwealth;
    25         (3)  through the ownership, participation and operation
    26     of business enterprises associated with or utilized by
    27     licensed table game entities and licensed table game
    28     facilities; and
    29         (4)  through the provision of goods, property and
    30     services utilized by licensed table game entities under this
    20070H2121B2339                 - 45 -     

     1     act.
     2     (b)  Investigations.--The board is authorized to investigate
     3  and conduct an annual audit of each licensed table game entity
     4  to ascertain whether effective and meaningful action has been
     5  taken or will be taken to enhance the representation of diverse
     6  groups:
     7         (1)  In the ownership, participation and operation of
     8     qualified licensed facilities in this Commonwealth.
     9         (2)  Through the ownership and operation of business
    10     enterprises associated with or utilized by table game
    11     licensees.
    12         (3)  Through the provision of goods, property and
    13     services utilized by table game licensees and licensed table
    14     game facilities.
    15         (4)  Through employment opportunities with qualified
    16     licensed entities and licensed table game facilities.
    17     (c)  Employment opportunities.--The board shall work to
    18  promote and ensure that it and applicants for a table game
    19  license and table game licensees afford equal employment
    20  opportunity to all prospective employees and to all actual
    21  employees to be employed by the board, applicant, licensees and
    22  by contractors, subcontractors, assignees, lessees, agents,
    23  vendors and suppliers of applicants and licensees. Each
    24  application for a table game license shall include a written
    25  guaranty that all contracts and subcontracts entered by the
    26  applicant contain appropriate provisions by which contractors
    27  and subcontractors or their assignees agree to afford equal
    28  employment opportunity to all prospective employees and to all
    29  actual employees to be employed by the contractor or
    30  subcontractor in accordance with a plan approved by the board.
    20070H2121B2339                 - 46 -     

     1     (d)  Board required to report.--No later than one year after
     2  the commencement of authorized table games at licensed table
     3  game facilities, the board shall include in its first due annual
     4  report after that date and each annual report thereafter
     5  submitted in accordance with section 305(a), the activities
     6  undertaken by licensed table game entities and facilities to
     7  promote diversity and accord equal employment opportunity in
     8  accordance with subsection (c). The report shall include a
     9  concise summary of the information reported to the board
    10  pursuant to section 305(a)(4).
    11  Section 311.  Application appeals.
    12     The Supreme Court of the Commonwealth of Pennsylvania shall
    13  be vested with exclusive appellate jurisdiction to consider
    14  appeals of any final order, determination or decision of the
    15  board involving the approval, issuance, denial, conditioning or
    16  renewal of all licensed entity applications. Notwithstanding the
    17  provisions of 2 Pa.C.S. Ch. 7 Subch. A (relating to judicial
    18  review of Commonwealth agency action) and 42 Pa.C.S. § 763
    19  (relating to direct appeals from government agencies), the
    20  Supreme Court shall affirm all final orders, determinations or
    21  decisions of the board involving the approval, issuance, denial,
    22  conditioning or renewal of all licensed table game entity
    23  applications unless it shall find that the board committed an
    24  error of law or that the order, determination or decision of the
    25  board was arbitrary and there was a capricious disregard of the
    26  evidence.
    27  Section 312.  Issuance of license, permit or registration.
    28     (a)  Issuance.--In addition to any other criteria provided
    29  under this act, any applicant for a table game license or for a
    30  table game supplier, manufacturer, service industry or key
    20070H2121B2339                 - 47 -     

     1  employee license or any applicant for a license, permit or
     2  registration or other person that the board approves as
     3  qualified to receive a license, permit or registration under
     4  this act shall be issued a license, permit or registration upon
     5  the payment of any fee required and upon the fulfillment of any
     6  conditions required by the board or provided for in this act.
     7  Nothing contained in this act is intended or shall be construed
     8  to create an entitlement to a license, permit or registration by
     9  any person. A license, permit or registration issued under this
    10  act is a revocable privilege granted by the Commonwealth and is
    11  not a property right. The board shall in its sole discretion
    12  issue, renew, condition or deny a table game license based upon
    13  the requirements of this act and whether the issuance of a
    14  license will enhance tourism, economic development or job
    15  creation, is in the best interests of this Commonwealth and
    16  advances the purposes of this act.
    17     (b)  Eligibility.--A license, permit or registration shall
    18  not be granted or renewed unless the board finds that the
    19  applicant satisfies all of the following criteria:
    20         (1)  The applicant has developed and implemented a
    21     diversity plan to ensure that all persons are accorded
    22     equality of opportunity in employment and contracting by the
    23     applicant, its contractors, subcontractors, assignees,
    24     lessees, agents, vendors and suppliers pursuant to 4 Pa.C.S.
    25     § 1325(b)(1) (relating to license or permit issuance).
    26         (2)  The applicant in all other respects is found
    27     suitable consistent with the laws of this Commonwealth and is
    28     otherwise qualified to be issued a license, permit or
    29     registration.
    30     (c)  Additional requirements.--In addition to the eligibility
    20070H2121B2339                 - 48 -     

     1  requirements otherwise provided in this act, the board may also
     2  take into account the following factors when considering an
     3  application for a table game license:
     4         (1)  The location and quality of the proposed table game
     5     facility, including, but not limited to, road and transit
     6     access, parking and centrality to market service area.
     7         (2)  The potential for new job creation and economic
     8     development that will result from granting a table game
     9     license to an applicant.
    10         (3)  The applicant's good faith plan to recruit, train
    11     and upgrade diversity in all employment classifications in
    12     the table game facility.
    13         (4)  The applicant's good faith plan for enhancing the
    14     representation of diverse groups in the operation of its
    15     table game facility through the ownership and operation of
    16     business enterprises associated with or utilized by its table
    17     game facility or through the provision of goods or services
    18     utilized by its table game facility and through the
    19     participation in the ownership of the applicant.
    20         (5)  The applicant's good faith effort to ensure that all
    21     persons are accorded equality of opportunity in employment
    22     and contracting by it and any contractors, subcontractors,
    23     assignees, lessees, agents, vendors and suppliers it may
    24     employ directly or indirectly.
    25         (6)  The history and success of the applicant in
    26     developing tourism facilities ancillary to gaming development
    27     if applicable to the applicant.
    28         (7)  The degree to which the applicant presents a plan
    29     for the project which will likely lead to the creation of
    30     quality, living-wage jobs and full-time permanent jobs for
    20070H2121B2339                 - 49 -     

     1     residents of this Commonwealth generally and for residents of
     2     the host political subdivision particularly.
     3         (8)  The record of the applicant and its developer in
     4     meeting commitments to local agencies, community-based
     5     organizations and employees in other locations.
     6         (9)  The degree to which potential adverse effects which
     7     might result from the project, including costs of meeting the
     8     increased demand for public health care, child care, public
     9     transportation, affordable housing and social services
    10     including compulsive and problem gambling programs, will be
    11     mitigated by the applicant or licensee.
    12         (10)  The record of the applicant and its developer
    13     regarding compliance with:
    14             (i)  Federal, State and local discrimination, wage
    15         and hour, disability and occupational and environmental
    16         health and safety laws.
    17             (ii)  State and local labor relations and employment
    18         laws.
    19         (11)  The applicant's record in dealing with its
    20     employees and their representatives at other locations.
    21                             CHAPTER 4
    22                     FEES, FINES AND PENALTIES
    23  Section 401.  Authority of board; imposition and collection of
    24                 fees, fines and penalties.
    25     (a)  Authority to levy and collect.--
    26         (1)  The board shall levy and collect fees from
    27     applicants for a license, permit or registration under this
    28     act to assist in funding the operations of the board. The
    29     fees collected by the board shall be deposited in the State
    30     Gaming Fund established under 4 Pa.C.S. § 1403 (relating to
    20070H2121B2339                 - 50 -     

     1     establishment of State Gaming Fund and net slot machine
     2     revenue distribution). The board shall assess and collect
     3     fees as follows:
     4             (i)  A person approved by the board for a supplier
     5         license shall pay a license fee of $25,000 upon the
     6         issuance of the supplier license and a renewal fee of
     7         $10,000 for the annual renewal of a supplier license, if
     8         the board approves the renewal.
     9             (ii)  A person approved by the board for a
    10         manufacturer license shall pay a license fee of $50,000
    11         upon the issuance of the manufacturer license and a
    12         renewal fee of $25,000 for the annual renewal of the
    13         manufacturer license, if the board approves the renewal.
    14             (iii)  Each application for a supplier license or
    15         manufacturer license shall be accompanied by a
    16         nonrefundable application fee of $2,500. The application
    17         fee shall be used to cover the reasonable and necessary
    18         costs and expenses incurred by the board in any
    19         background investigation or proceeding concerning the
    20         applicant. The applicant shall reimburse the board for
    21         any additional costs which may be incurred as a result of
    22         the investigation or proceeding. The board shall refund
    23         to the applicant any money which is not expended in
    24         connection with the conduct of the background
    25         investigation.
    26             (iv)  A person approved by the board for a table game
    27         service industry license shall pay a license fee of
    28         $25,000 upon the issuance of the license and a renewal
    29         fee of $10,000 for the annual renewal of a service
    30         industry license if the board approves the renewal. Each
    20070H2121B2339                 - 51 -     

     1         application for a service industry license shall be
     2         accompanied by a nonrefundable application fee of $2,500.
     3         The application fee shall be used to cover the reasonable
     4         and necessary costs and expenses incurred by the board in
     5         any background investigation or proceeding concerning the
     6         applicant for license. The applicant shall reimburse the
     7         board of any additional costs that may be incurred as a
     8         result of the investigation or proceeding. The board
     9         shall refund to the applicant any money that is not
    10         expended in the conduct of the background investigation.
    11         (2)  The board shall provide for the assessment and
    12     collection of fines and penalties for violations of this act
    13     or regulations promulgated under this act. Fines and
    14     penalties collected by the board shall be credited for
    15     deposit to the General Fund. The board by regulation may from
    16     time to time increase any fee, charge, cost or administrative
    17     penalty provided in this act by a reasonable amount, except
    18     that no fee, charge, cost or administrative penalty shall be
    19     increased until three years subsequent to the effective date
    20     of this act.
    21         (3)  Notwithstanding any provision of this section to the
    22     contrary, the board by regulation may establish additional
    23     fees for the investigation and consideration of applications
    24     for the issuance and renewal of licenses, permits and
    25     registrations under this act. The fees shall be payable by
    26     the applicant, licensee, permittee or registrant.
    27         (4)  The board by regulation may establish fees to recoup
    28     the costs of services, equipment or other expenses that are
    29     rendered, utilized or incurred by the bureau, the
    30     Pennsylvania State Police or the board, including any unusual
    20070H2121B2339                 - 52 -     

     1     or out-of-pocket expenses directly related to the operation
     2     of authorized table games or in response to requests arising
     3     under this act that are unrelated to investigation or
     4     consideration of the issuance or renewal of a license, permit
     5     or registration.
     6     (b)  Additional assessment.--
     7         (1)  In addition to the fees required under subsection
     8     (a), there is hereby imposed an annual assessment that shall
     9     be paid by each holder of a manufacturer license, supplier
    10     license and service industry license as provided for in this
    11     subsection.
    12         (2)  Each licensed manufacturer, licensed supplier and
    13     licensed service industry that engages in commerce with a
    14     licensed table game entity in this Commonwealth shall pay an
    15     annual assessment of $50,000.
    16         (3)  The annual assessment required under this subsection
    17     shall be paid to the department on or before the date each
    18     licensed manufacturer, licensed supplier or licensed service
    19     industry begins to engage in commerce with a licensed table
    20     game entity in this Commonwealth and annually on that date,
    21     thereafter.
    22         (4)  The department shall cause the annual assessment to
    23     be deposited in the fund established under 4 Pa.C.S. § 1509
    24     (relating to compulsive and problem gambling program). The
    25     moneys deposited in the fund shall be used solely for the
    26     purposes enumerated in 4 Pa.C.S. § 1509 and Chapter 28
    27     (relating to compulsive gambling assistance) and shall not be
    28     used for any other purpose.
    29  Section 402.  Table game license fee.
    30     (a)  Establishment of fee.--Notwithstanding the licensing fee
    20070H2121B2339                 - 53 -     

     1  imposed upon applicants for a slot machine license pursuant to 4
     2  Pa.C.S. §§ 1209 (relating to slot machine license fee) and 1305
     3  (relating to Category 3 slot machine license), and subject to
     4  the requirements of this act, at the time a table game license
     5  is issued by the board, a table game license fee in the amount
     6  of $10,000,000 shall be remitted to the board by each holder of
     7  a Category 1, Category 2 and Category 3 slot machine license
     8  that applies for and is approved for a table game license under
     9  this act. The license fees set forth in this section shall be
    10  remitted upon the issuance of a table game license by the board.
    11     (b)  Renewal fee and term of license.--A table game license,
    12  upon payment of the license fee established in subsection (a),
    13  shall be issued for a term of one year, unless suspended or
    14  revoked by the board. The term for a renewed license shall be
    15  one year for each of the first two renewal periods succeeding
    16  the initial issuance of the license. Thereafter, the board may
    17  by regulation establish a longer renewal period. Each
    18  application to renew a table game license shall be accompanied
    19  by an annual license renewal fee of $500,000, except that, if
    20  the board establishes a longer renewal period, the amount of the
    21  license renewal fee shall be computed in a manner to reflect the
    22  longer renewal period.
    23  Section 403.  Deposit of fees.
    24     The total amount of all license, permit and registration fees
    25  and any other fees established, imposed and collected by the
    26  board pursuant to this chapter shall be deposited in the State
    27  Gaming Fund. The fees authorized and collected in accordance
    28  with this chapter and so deposited shall be annually
    29  appropriated to the board by the General Assembly to administer
    30  this act.
    20070H2121B2339                 - 54 -     

     1  Section 404.  Ability to pay license fee.
     2     Each applicant for a table game license shall, at the time of
     3  application, post a bond in the amount of $10,000,000 to
     4  demonstrate the financial ability of the applicant to pay the
     5  license fee as established in section 402 if issued a table game
     6  license by the board. The bond may be furnished in negotiable
     7  securities, by a surety bond guaranteed by a satisfactory
     8  guarantor or by an irrevocable letter of credit issued by a
     9  banking institution or other lending institution acceptable to
    10  the board.
    11  Section 405.  Fee on authorized table games.
    12     (a)  Annual fee.--In addition to any other fee imposed under
    13  this act, there is also hereby imposed an annual license fee of
    14  $500 upon every authorized table game maintained for use or in
    15  use in any licensed table game facility in this Commonwealth.
    16     (b)  Date of imposition.--The fee imposed under this section
    17  shall be imposed as of the first day of July of each year with
    18  regard to all table games maintained for use or in use on that
    19  date, and on a pro rata basis thereafter during the year with
    20  regard to all table games conducted and maintained for use or
    21  placed in use after July 1.
    22     (c)  Deposit.--Notwithstanding any other provision to the
    23  contrary, the fee required under this section shall be paid by
    24  each table game licensee to the department for deposit into the
    25  compulsive and problem gambling treatment fund established under
    26  4 Pa.C.S § 1509 (relating to compulsive and problem gambling
    27  program) and shall be used for the purposes enumerated in 4
    28  Pa.C.S. § 1509 and Chapter 28 (relating to compulsive gambling
    29  assistance).
    30                             CHAPTER 5
    20070H2121B2339                 - 55 -     

     1                        AUTHORIZED LICENSES
     2  Section 501.  Table game licensing requirements.
     3     (a)  General eligibility.--A person who has been approved for
     4  and issued a license as a licensed gaming entity under 4 Pa.C.S.
     5  Pt. II (relating to gaming) shall be eligible to apply for a
     6  table game license in accordance with this act, except that
     7  nothing contained in this act shall be construed to create an
     8  entitlement to a table game license by the licensed gaming
     9  entity or person. The board shall, in its sole discretion,
    10  issue, renew, condition or deny a table game license based upon
    11  the requirements of this act and whether the issuance of a table
    12  game license will enhance tourism, including international
    13  tourism; promote economic development and job creation; is in
    14  the best interest of the Commonwealth; will advance the
    15  Commonwealth's regional competitive advantage; and will advance
    16  the purposes of this act. It shall be the affirmative
    17  responsibility of each licensed gaming entity to establish by
    18  clear and convincing evidence all qualifications for a table
    19  game license, and the qualifications of each person who is
    20  required to be qualified under this act as well as the
    21  qualifications of the licensed facility in which the table games
    22  are to be located and operated.
    23     (b)  Responsibility of persons seeking qualification.--Each
    24  licensed gaming entity or any other person who must be qualified
    25  for licensure pursuant to this act shall provide all information
    26  required under this act and satisfy all requests for information
    27  pertaining to qualification in the form and manner and at the
    28  time specified by the board. Applicants for a table game license
    29  and table game licensees shall waive liability as to the
    30  Commonwealth of Pennsylvania and its instrumentalities and
    20070H2121B2339                 - 56 -     

     1  agents for any damages that may result from any disclosure or
     2  publication in any manner, other than a willfully unlawful
     3  disclosure or publication of any material or information
     4  acquired during inquiries, investigations or hearings. The
     5  following shall apply to licensed gaming entities and other
     6  persons seeking qualification for a table game license:
     7         (1)  Applicants for a table game license, table game
     8     licensees, intermediary companies, and holding companies
     9     shall consent to inspections, searches, seizures and the
    10     supplying of handwriting exemplars as authorized by this act
    11     and regulations promulgated under this act.
    12         (2)  Applicants for a table game license, table game
    13     licensees and any other person required to be qualified under
    14     this act shall have the continuing duty to provide any
    15     assistance or information required by the board, the bureau,
    16     the Pennsylvania State Police or the Attorney General, and to
    17     cooperate in any inquiry or investigation conducted by the
    18     board, bureau, Pennsylvania State Police or the Attorney
    19     General and any inquiry, investigation or hearing conducted
    20     by the board. If upon issuance of a formal request to answer
    21     or produce information, evidence or testimony, any applicant,
    22     licensee or any other person required to be qualified under
    23     this act refuses to comply, the application, license or
    24     qualification of the person may be denied or revoked by the
    25     board.
    26         (3)  No applicant for a table game license or a table
    27     game licensee shall give or provide, offer to give or
    28     provide, directly or indirectly, any compensation or reward
    29     or any percentage or share of the money or property played or
    30     received through table game operations, except as authorized
    20070H2121B2339                 - 57 -     

     1     by this act, in consideration for obtaining any license,
     2     authorization, permission or privilege to participate in any
     3     way in table game operations.
     4         (4)  Each applicant for a table game license, licensed
     5     gaming entity or person required to be qualified under this
     6     act shall be photographed and fingerprinted for
     7     identification and investigation purposes in accordance with
     8     procedures established by the board pursuant to this act. The
     9     board may by regulation waive the requirements of this
    10     paragraph for any person or individual who has satisfied
    11     these requirements as a condition for licensure and who has
    12     been issued a license under 4 Pa.C.S. Pt. II within six
    13     months subsequent to submitting an application for a license
    14     under 4 Pa.C.S. Pt. II. The regulations promulgated by the
    15     board pursuant to this paragraph shall set forth the
    16     conditions or criteria under which photographing and
    17     fingerprinting may be waived for an applicant or person who
    18     holds a valid license under 4 Pa.C.S. Pt. II.
    19         (5)  Licensed gaming entities and other persons required
    20     to be qualified under this act, and persons employed by a
    21     table game service industry licensed under this act, shall
    22     inform the board or bureau of any action that they believe or
    23     reasonably suspect would constitute a violation of this act.
    24     No person who so informs the board or the bureau shall be
    25     discriminated against by an applicant for a table game
    26     license or a table game licensee because of the furnishing of
    27     the information.
    28  Section 502.  Statement of compliance.
    29     (a)  Issuance.--The board may, in its discretion, issue a
    30  statement of compliance to a licensed gaming entity or an
    20070H2121B2339                 - 58 -     

     1  applicant for a table game license or for qualification status
     2  under this act at any time the board is satisfied that the
     3  licensed gaming entity or applicant has established by clear and
     4  convincing evidence that one or more particular eligibility
     5  criteria have been satisfied. A request for the issuance of a
     6  statement of compliance under this subsection shall be initiated
     7  by the licensed gaming entity or applicant filing a petition
     8  with the board. Before the board initiates an investigation of
     9  the licensed gaming entity or applicant, the board may require
    10  the licensed gaming entity or applicant to establish, to the
    11  satisfaction of the board, that the entity or applicant actually
    12  intends, if found qualified, to engage in the business or
    13  activity that would require the issuance of the table game
    14  license or the determination of qualification status under this
    15  act.
    16     (b)  Petition seeking alternative issuance.--Any person who
    17  is required to be qualified under this act in order to hold
    18  securities of a licensed table game entity or any holding or
    19  intermediary company of a licensed table game entity may, prior
    20  to acquisition of the securities, request the issuance of a
    21  statement of compliance by the board that the person is
    22  qualified to hold the securities. Any request for the issuance
    23  of a statement of compliance pursuant to this subsection shall
    24  be initiated by the person filing a petition with the board in
    25  which the person shall be required to establish that there is a
    26  reasonable likelihood that, if qualified, the person will obtain
    27  and hold the securities of the licensed table game entity or any
    28  holding or intermediary company of the licensed table game
    29  entity to the extent to require the qualification of the person
    30  under this act. If the board finds that this reasonable
    20070H2121B2339                 - 59 -     

     1  likelihood exists, and if the board is satisfied, after
     2  investigation, that the qualifications of the person have been
     3  established by clear and convincing evidence, the board may, in
     4  its discretion, issue a statement of compliance that the person
     5  is qualified to hold the securities. Any person who requests a
     6  statement of compliance pursuant to this subsection shall be
     7  subject to section 501. The person shall pay for the costs of
     8  all investigations and proceedings in relation to the request
     9  unless the person provides to the board a written agreement
    10  specifying the licensed table game entity will pay the costs.
    11     (c)  Requirements for corporation.--A statement of compliance
    12  shall not be issued indicating that an applicant, which is a
    13  corporation or other form of business organization, has
    14  established by clear and convincing evidence its good character,
    15  honesty and integrity unless the chief executive officer, chief
    16  operating officer and chief financial officer or the functional
    17  equivalent of each, each director, each person who directly or
    18  indirectly holds any beneficial interest or ownership interest
    19  in the applicant, to the extent that the person would be
    20  required to qualify under 4 Pa.C.S. § 1311 (relating to slot
    21  machine license application business entity requirements), if
    22  the applicant were a holding company or intermediary company of
    23  a licensed gaming entity and any other person that the board may
    24  consider appropriate for approval or qualification, would, but
    25  for residency, individually be qualified for approval as a key
    26  employee pursuant to the applicable provisions of this act.
    27     (d)  Contents of statement of compliance.--A statement of
    28  compliance issued under this act shall specify:
    29         (1)  The particular eligibility criteria satisfied by the
    30     applicant or person.
    20070H2121B2339                 - 60 -     

     1         (2)  The date as of which satisfaction was determined by
     2     the board.
     3         (3)  The continuing obligation of the applicant or person
     4     to file any information required by the board as part of any
     5     application for a table game license or qualification status
     6     under this act, including information related to the
     7     eligibility criteria for which the statement of compliance
     8     was issued.
     9         (4)  The obligation of the applicant or person to
    10     reestablish its satisfaction of the eligibility criteria
    11     should there be a change in any material fact or circumstance
    12     that is relevant to the eligibility criteria for which the
    13     statement of compliance was issued.
    14     (e)  Withdrawal by board.--A statement of compliance issued
    15  pursuant to this section may be withdrawn by the board if:
    16         (1)  The applicant or person otherwise fails to satisfy
    17     the eligibility criteria for licensure or qualifications.
    18         (2)  The applicant or person fails to comply with any
    19     condition imposed by the board.
    20         (3)  The board finds cause to revoke the statement of
    21     compliance for any other reason.
    22     (f)  Duration.--Notwithstanding any other provision of this
    23  section, unless otherwise extended by the board upon application
    24  by the recipient and for good cause shown, any statement of
    25  compliance issued by the board in accordance with this section
    26  shall expire 48 months after the date of issuance, unless the
    27  recipient receives a commitment from the board for the
    28  reservation of a table game license, in which case the statement
    29  of compliance shall expire on the same day as the commitment.
    30  Section 503.  Table game license applicant eligibility.
    20070H2121B2339                 - 61 -     

     1     (a)  Requirement to operate.--No licensed gaming entity shall
     2  operate table games unless all necessary licenses, certificates
     3  and approvals authorizing the operation of authorized table
     4  games have been approved and issued by the board in accordance
     5  with this act.
     6     (b)  Eligibility.--Only the following persons shall be
     7  eligible to apply for a table game license, and each of the
     8  following persons shall be required to hold a slot machine
     9  license prior to the operation of authorized table games in the
    10  licensed table game facility with respect to which the table
    11  game license has been applied for:
    12         (1)  A person who has been approved for a Category 1 slot
    13     machine license pursuant to 4 Pa.C.S. §§ 1302 (relating to
    14     Category 1 slot machine license) and 1303 (relating to
    15     additional Category 1 slot machine requirements), or a person
    16     who has been issued a slot machine license pursuant to 4
    17     Pa.C.S. § 1325 (relating to license or permit issuance).
    18         (2)  A person who has been approved for a Category 2 slot
    19     machine license pursuant to 4 Pa.C.S. § 1304 (relating to
    20     Category 2 slot machine license), or who has been issued a
    21     slot machine license pursuant to 4 Pa.C.S. § 1325.
    22         (3)  A person who has been approved for a Category 3 slot
    23     machine license pursuant to 4 Pa.C.S. § 1305 (relating to
    24     Category 3 slot machine license), or who has been issued a
    25     slot machine license pursuant to 4 Pa.C.S. § 1325. The board
    26     shall promulgate regulations prescribing the number, kind and
    27     manner in which authorized table games may be conducted in a
    28     Class 3 licensed facility or any establishment of a Class 3
    29     licensed facility.
    30         (4)  Any person qualified in accordance with the
    20070H2121B2339                 - 62 -     

     1     requirements of this act who has a written agreement with a
     2     licensed gaming entity or with an applicant for or holder of
     3     a slot machine license for the complete management of a
     4     proposed or existing table game facility.
     5         (5)  Any other person who has control over either a
     6     licensed facility or the land thereunder or the operation of
     7     a licensed facility in accordance with the requirements of
     8     this act.
     9  Section 504.  Requirements to manage.
    10     Prior to the operation of a table game facility in this
    11  Commonwealth, any agreement to lease an approved table game
    12  facility or the land thereunder and any agreement for the
    13  management of a table game facility shall be in writing and
    14  filed with the board. No agreement shall be effective unless
    15  expressly approved by the board. The board may require that any
    16  agreement include within its terms provisions reasonably
    17  necessary to best accomplish the policies of this act.
    18  Notwithstanding any other provisions of law or regulation to the
    19  contrary and consistent with the policies of this act:
    20         (1)  The board may determine that any person who does not
    21     have the ability to exercise any significant control over
    22     either the licensed table game facility or the operation of
    23     table games within such table game facility shall not be
    24     eligible to hold or be required to hold a table game license.
    25         (2)  The board may determine that any owner, lessor or
    26     lessee of a licensed table game facility or the land
    27     thereunder who does not own or lease the entire licensed
    28     facility shall not be eligible to hold or required to hold a
    29     table game license.
    30         (3)  The board may require that any person or persons
    20070H2121B2339                 - 63 -     

     1     eligible to apply for a table game license organize into such
     2     form or forms of business association as the board shall deem
     3     necessary or desirable in the circumstances to carry out the
     4     policies of this act.
     5         (4)  The board may issue separate table game licenses to
     6     any person eligible to apply for a table game license.
     7         (5)  As to agreements to lease a licensed table game
     8     facility or the land thereunder, unless it expressly and by
     9     formal vote for good cause determines otherwise, the board
    10     shall require that each party to the agreement hold either a
    11     table game license or table game service industry license and
    12     that the agreement be for a durational term exceeding 30
    13     years, concerns 100% of the entire licensed table game
    14     facility or of the land upon which same is located, and
    15     include within its terms a buy-out provision conferring upon
    16     the licensee-lessee that controls the operation of the
    17     approved licensed table game facility the absolute right to
    18     purchase for an expressly set forth fixed sum the entire
    19     interest of the lessor or any person associated with the
    20     lessor in the licensed table game facility or the land
    21     thereunder in the event that the lessor or person associated
    22     with the lessor is found by the board to be unsuitable to be
    23     associated with the licensed table game facility.
    24         (6)  The board shall not permit an agreement for the
    25     leasing of a licensed table game facility or the land
    26     thereunder to provide for the payment of an interest,
    27     percentage or share of money wagered at the table game
    28     facility or derived from table game operations or of the
    29     revenues or profit of the licensed table game facility,
    30     unless:
    20070H2121B2339                 - 64 -     

     1             (i)  The party receiving payment of the interest,
     2         percentage or share is a party to the approved lease
     3         agreement.
     4             (ii)  Each party to the lease agreement holds either
     5         a table game license or table game service industry
     6         license.
     7             (iii)  The agreement is for a durational term
     8         exceeding 30 years, concerns a significant portion of the
     9         entire licensed table game facility or of the land upon
    10         which the same is located and includes within its terms a
    11         buy-out provision conforming to the requirements of
    12         paragraph (5).
    13         (7)  As to agreements for the management of a table game
    14     facility, the board shall require that:
    15             (i)  Each party to an agreement hold a table game
    16         license.
    17             (ii)  The party to an agreement who is to manage the
    18         table game operations own at least 10% of all outstanding
    19         equity securities of the table game license or of the
    20         eligible applicant for a table game license, if the
    21         licensee or applicant is a corporation and the ownership
    22         of an equivalent interest in the table game licensee or
    23         in the eligible applicant for a table game license, if
    24         the applicant is not a corporation.
    25             (iii)  The agreement be for the complete management
    26         of all table game space in the facility, provide for the
    27         sole and unrestricted power to direct the table game
    28         operations of the facility that is the subject of the
    29         agreement, and be for a durational term that assures
    30         reasonable continuity, stability and independence in the
    20070H2121B2339                 - 65 -     

     1         management of the table game operations.
     2         (8)  The board may permit an agreement for the management
     3     of a licensed table game facility to provide for the payment
     4     to the managing party of an interest, percentage or share of
     5     money gambled at all authorized table games or derived from
     6     table game activity or of revenues or profits of table game
     7     operations.
     8         (9)  Notwithstanding any provision of this act to the
     9     contrary, the board may permit an agreement between a
    10     licensed gaming entity and a licensed table game service
    11     industry for the operation of multifacility progressive slot
    12     machine systems to provide for the payment to the licensed
    13     table game service industry of an interest, percentage or
    14     share of the money derived from the licensed gaming entity's
    15     share of proceeds from the operation of multifacility
    16     progressive slot machine systems.
    17         (10)  As to agreements to lease a licensed table game
    18     facility or the land thereunder, agreements to jointly own a
    19     table game facility or the land thereunder and agreements for
    20     the management of table game operations, the board shall
    21     require that each party to the agreement, except for banking
    22     or other chartered or licensed lending institutions or any
    23     subsidiary thereof, or any chartered or licensed life
    24     insurance company or property and casualty insurance company,
    25     or the Commonwealth or any agency or instrumentality of the
    26     Commonwealth or any political subdivision thereof, shall be
    27     jointly and severally liable for all acts, omissions and
    28     violations of this act by any party to the agreement
    29     regardless of actual knowledge of the act, omission or
    30     violation and notwithstanding any provision of the agreement
    20070H2121B2339                 - 66 -     

     1     to the contrary. Nothing in this paragraph shall require a
     2     licensed gaming entity to be jointly and severally liable for
     3     any acts, omissions or violations of this act committed by a
     4     table game service industry.
     5  Section 505.  Eligibility of corporations.
     6     (a)  Eligibility.--No corporation shall be eligible to apply
     7  for a table game license unless:
     8         (1)  The corporation is incorporated in this
     9     Commonwealth, although the corporation may be a wholly or
    10     partially owned subsidiary of a corporation that is organized
    11     pursuant to the laws of another state or territory of the
    12     United States or of a foreign country.
    13         (2)  The corporation maintains an office in the table
    14     game facility licensed or to be licensed under this act.
    15         (3)  The corporation complies with all the requirements
    16     of the laws and regulations of this Commonwealth generally
    17     pertaining to corporations.
    18         (4)  The corporation maintains a ledger in the principal
    19     office of the corporation in this Commonwealth, which shall
    20     at all times reflect the current ownership of every class of
    21     security issued by the corporation and shall be available for
    22     inspection by the board or the bureau and authorized agents
    23     of the board or the bureau at all reasonable times without
    24     notice.
    25         (5)  The corporation maintains all operating accounts
    26     required by the board in a bank in this Commonwealth, except
    27     that a table game licensee may establish deposit-only
    28     accounts in any jurisdiction in order to secure payment of
    29     any check described in section 1602.
    30         (6)  The corporation includes among the purposes stated
    20070H2121B2339                 - 67 -     

     1     in its certificate of incorporation the conduct of table
     2     games or gaming and provides that the certificate of
     3     incorporation include all provisions required by this act.
     4         (7)  The corporation, if it is not a publicly traded
     5     corporation, files with the board the adopted corporate
     6     charter provisions that may be necessary to establish the
     7     right of prior approval by the board with regard to transfers
     8     of securities, shares and other interests in the applicant
     9     corporation and, if the corporation is a publicly traded
    10     corporation, ensures in its corporate charter that any
    11     securities of the corporation are held subject to the
    12     condition that if a holder of securities is found to be
    13     disqualified by the board pursuant to this act, the
    14     disqualified holder shall dispose of the holder's interest in
    15     the corporation. Notwithstanding any other provision of law
    16     or regulation to the contrary, nothing in this paragraph
    17     shall be deemed to require that any security of the
    18     corporation bear any legend to this effect.
    19         (8)  The corporation, if not a publicly traded
    20     corporation, establishes to the satisfaction of the board
    21     that appropriate charter provisions create the absolute right
    22     of the nonpublicly traded corporations and companies to
    23     repurchase at the market price or the purchase price,
    24     whichever is the lesser, any security, share or other
    25     interest in the corporation in the event that the board
    26     disapproves a transfer in accordance with this act.
    27         (9)  Any publicly traded holding, intermediary or
    28     subsidiary company of the corporation, whether the
    29     corporation is publicly traded or not, contains in its
    30     corporate charter the same provisions required under
    20070H2121B2339                 - 68 -     

     1     paragraph (7) for a publicly traded corporation to be
     2     eligible to apply for a table game license under this act.
     3         (10)  Any nonpublicly traded holding, intermediary or
     4     subsidiary company of the corporation, whether the
     5     corporation is publicly traded or not, establishes to the
     6     satisfaction of the board that its charter provisions are the
     7     same as those required under paragraphs (7) and (8) for
     8     nonpublicly traded corporations to be eligible to apply for a
     9     table game license under this act.
    10     (b)  Earlier approval.--Notwithstanding subsection (a), any
    11  corporation that had bylaw provisions approved by the board
    12  prior to the effective date of this act shall have one year from
    13  the effective date of this act to adopt appropriate charter
    14  provisions that conform to the requirements of this section.
    15  Section 506.  Restrictions on licensure.
    16     (a)  General rule.--In addition to considering all other
    17  requirements under this act in deciding whether to approve
    18  direct or indirect ownership or control of a table game license,
    19  the board shall consider the impact of any economic
    20  concentration of that ownership or control. No direct or
    21  indirect ownership or control shall be approved, and no table
    22  game license shall be issued or transferred to or held by any
    23  person or entity if the board determines the approval, issuance,
    24  transfer or holding will result in undue economic concentration
    25  in the direct or indirect ownership or control of table game
    26  operations in this Commonwealth. The board shall by regulation
    27  develop criteria for determining whether the issuance, transfer
    28  or holding, directly or indirectly, of a table game license
    29  would result in undue economic concentration.
    30     (b)  Construction.--For the purpose of this subsection, a
    20070H2121B2339                 - 69 -     

     1  person shall be considered the holder of a table game license if
     2  a table game license is issued to the person or if a table game
     3  license is being held by any holding, intermediary or subsidiary
     4  company of the person or by any officer, director, key employee
     5  or principal employee of the person or of any holding,
     6  intermediary or subsidiary company of the person.
     7     (c)  Definition.--As used in this section, "undue economic
     8  concentration" means that a person or entity would have such
     9  actual or potential domination of table game operations in this
    10  Commonwealth as to:
    11         (1)  substantially impede or suppress competition among
    12     holders of table game licenses;
    13         (2)  adversely impact the economic stability of the
    14     gaming industry in this Commonwealth; or
    15         (3)  negatively impact the policy purposes of this act,
    16     including tourism, economic development, benefits to host
    17     municipalities and State and local revenues.
    18                             CHAPTER 6
    19                   TABLE GAME LICENSE APPLICATION
    20  Section 601.  Application for table game license.
    21     (a)  Submission of application.--An application for a license
    22  to operate table games at a licensed facility shall be submitted
    23  to the board in the form and manner and at the time the board
    24  requires. A nonrefundable application fee of $2,500 as
    25  established by regulation of the board shall accompany the
    26  application. In addition to the requirements of this act, an
    27  application for a table game license shall be subject to the
    28  requirements of 4 Pa.C.S § 1308 (relating to applications for
    29  license or permit). If the applicant is a corporation,
    30  foundation, organization, business trust, estate, limited
    20070H2121B2339                 - 70 -     

     1  liability company, trust, partnership, limited partnership,
     2  association or any other form of business entity, the board
     3  shall determine the persons whose qualifications are necessary
     4  as a precondition to the licensing of the applicant.
     5     (b)  Application requirements.--In addition to any other
     6  requirements under this act, an applicant for a table game
     7  license shall produce information, documentation and assurances
     8  concerning suitability for a table game license under this act.
     9  Each applicant shall be subject to the provisions of 4 Pa.C.S.
    10  Pt. II (relating to gaming), which generally relate to
    11  licensure, including:
    12         (1)  Section 1309 (relating to slot machine license
    13     application).
    14         (2)  Section 1310 (relating to slot machine license
    15     application character requirements).
    16         (3)  Section 1311 (relating to slot machine license
    17     application business entity requirements).
    18         (4)  Section 1312 (relating to divestiture of
    19     disqualifying applicant).
    20         (5)  Section 1313(a), (b), (d) and (e) (relating to slot
    21     machine license application financial fitness requirements).
    22         (6)  Section 1325 (relating to license or permit
    23     issuance).
    24         (7)  Section 1326 (relating to license renewals).
    25     (c)  Exception.--The board may waive the requirements of
    26  subsection (b) for any applicant or licensed gaming entity that
    27  has been approved for and has been issued a slot machine license
    28  within six months subsequent to the submission of an application
    29  for a table game license, and who, as a result of the approval
    30  and issuance, has provided information, documentation and
    20070H2121B2339                 - 71 -     

     1  assurances as part of the application for a slot machine
     2  license, provided there has been no material change in the
     3  submissions.
     4     (d)  Additional requirements for corporate applicant.--
     5         (1)  In addition to the other information required to be
     6     provided under this act, an applicant who is a corporation
     7     seeking a table game license shall provide the following
     8     information:
     9             (i)  (A)  The organization, financial structure and
    10             nature of all businesses operated by the corporation.
    11                 (B)  The names and personal employment and
    12             criminal histories of all officers, directors and
    13             other principal employees of the corporation.
    14                 (C)  The names of all holding, intermediary and
    15             subsidiary companies of the corporation.
    16                 (D)  The organization, financial structure and
    17             nature of all businesses operated by its holding,
    18             intermediary and subsidiary companies as the board
    19             may require, including names and personal employment
    20             and criminal histories of the officers, directors and
    21             other principal employees of the corporation and
    22             companies as the board may require.
    23             (ii)  The rights and privileges acquired by the
    24         holders of different classes of authorized securities of
    25         the corporation and companies as the board may require,
    26         including the names, addresses and amounts held by all
    27         holders of the securities of the corporation.
    28             (iii)  The terms upon which securities have been or
    29         are to be offered.
    30             (iv)  The terms and conditions of all outstanding
    20070H2121B2339                 - 72 -     

     1         loans, mortgages, trust deeds, pledges or any other
     2         indebtedness or security device utilized by the
     3         corporation.
     4             (v)  The extent of equity security holding in the
     5         corporation of all officers, directors and underwriters
     6         and their remuneration in the form of salary, wages, fees
     7         or otherwise.
     8             (vi)  The names of persons, other than directors and
     9         officers, who occupy positions specified by the board or
    10         whose compensation exceeds an amount determined by the
    11         board and the amount of their compensation.
    12             (vii)  A description of all bonus and profit sharing
    13         arrangements.
    14             (viii)  Copies of all management and service
    15         contracts or agreements.
    16             (ix)  A listing of stock options existing or to be
    17         created.
    18         (2)  If a corporation or other form of business
    19     organization applying for a table game license is, or if a
    20     corporation or other form of business organization holding a
    21     table game license is to become a subsidiary, each holding
    22     company and each intermediary company with respect thereto,
    23     as a condition of the subsidiary acquiring or retaining the
    24     table game license, as the case may be, shall:
    25             (i)  Qualify to do business in this Commonwealth if
    26         the subsidiary company is not registered as a business
    27         entity in this Commonwealth.
    28             (ii)  If the applicant is a corporation, register
    29         with the board and furnish the board with all the
    30         information required of a corporate licensee pursuant to
    20070H2121B2339                 - 73 -     

     1         paragraph (1)(i), (ii) and (iii) and any other
     2         information the board may require.
     3             (iii)  If the applicant is not a corporation,
     4         register with the board and furnish the board with any
     5         information the board may require.
     6         (3)  No corporation shall be eligible to hold a table
     7     game license unless each officer, director, person who
     8     directly or indirectly holds any beneficial interest or
     9     ownership of the securities issued by the corporation, person
    10     who in the opinion of the board has the ability to control
    11     the corporation or elect a majority of the board of directors
    12     of the corporation, other than banking or other licensed
    13     lending institution that makes a loan or holds a mortgage or
    14     other lien acquired in the ordinary course of business,
    15     principal employee and any lender, underwriter, agent,
    16     employee of the corporation or other person whom the board
    17     may consider appropriate for approval or qualification would,
    18     but for residence, individually be qualified for approval as
    19     a table game key employee under this act.
    20         (4)  No corporation or other form of business
    21     organization that is a subsidiary shall be eligible to
    22     receive or hold a table game license unless each holding and
    23     intermediary company of the corporation shall:
    24             (i)  If an applicant is a corporation, comply with
    25         the provisions of paragraph (3) as if the holding or
    26         intermediary company were itself applying for a license.
    27         The board may waive compliance with paragraph (3) on the
    28         part of a holding company as to any officer, director,
    29         lender, underwriter, agent or employee of the holding
    30         company or person directly or indirectly holding a
    20070H2121B2339                 - 74 -     

     1         beneficial interest or ownership of the securities of the
     2         corporation, if the board is satisfied that the officer,
     3         director, lender, underwriter, agent or employee is not
     4         significantly involved in the activities of the corporate
     5         licensee, and in the case of security holders, does not
     6         have the ability to control the holding company or elect
     7         one or more directors of the holding company.
     8             (ii)  If an applicant is not a corporation, comply
     9         with paragraph (5) as if the company were itself applying
    10         for a license. The board may waive compliance with the
    11         provisions of paragraph (5) on the part of a noncorporate
    12         business organization that is a holding company as to any
    13         person who directly or indirectly holds any beneficial
    14         interest or ownership in the company, if the board is
    15         satisfied that the person does not have the ability to
    16         control the company.
    17         (5)  Any noncorporate applicant for a table game license
    18     shall provide the information required in paragraph (1) in
    19     the form and manner that the board requires. A noncorporate
    20     applicant is not eligible to hold a table game license unless
    21     each person who directly or indirectly holds a controlling or
    22     beneficial interest or ownership interest in the applicant,
    23     or who in the opinion of the board has the ability to control
    24     the applicant, or who the board may consider appropriate for
    25     approval or qualification, would, but for residence,
    26     individually be qualified for approval as a table game key
    27     employee under this act.
    28         (6)  Notwithstanding paragraphs (3) and (4), and in the
    29     absence of a prima facie showing by the board that there is
    30     any cause to believe that an institutional investor may be
    20070H2121B2339                 - 75 -     

     1     found unqualified, the following shall apply:
     2             (i)  An institutional investor holding either under
     3         10% of the equity securities of a licensee's holding or
     4         intermediary companies or debt securities of a licensee's
     5         holding or intermediary companies or another subsidiary
     6         company of a licensee's holding or intermediary companies
     7         that is related in any way to the financing of the table
     8         game licensee, where the securities represent a
     9         percentage of the outstanding debt of the company not
    10         exceeding 20% or a percentage of any issue of the
    11         outstanding debt of the company not exceeding 50%, shall
    12         be granted a waiver of qualification if the securities
    13         are those of a publicly traded corporation and its
    14         holdings of the securities were purchased for investment
    15         purposes only and upon request by the board, it files
    16         with the board a certified statement to the effect that
    17         it has no intention of influencing or affecting the
    18         affairs of the issuer, the table game licensee or its
    19         holding or intermediary companies. An institutional
    20         investor shall be permitted to vote on matters put to the
    21         vote of the outstanding security holders.
    22             (ii)  The board may grant a waiver of qualification
    23         to an institutional investor holding a higher percentage
    24         of the securities upon a showing of good cause and if the
    25         conditions specified in subparagraph (i) are met. Any
    26         institutional investor granted a waiver under this
    27         paragraph that subsequently determines to influence or
    28         affect the affairs of the issuer, table game licensee or
    29         its holding or intermediary companies shall provide not
    30         less than 30 days' notice of that intent to the board and
    20070H2121B2339                 - 76 -     

     1         shall file with the board an application for
     2         qualification under this act before taking any action
     3         that may influence or affect the affairs of the issuer,
     4         table game licensee or its holding or intermediary
     5         companies. The institutional investor shall be permitted
     6         to vote on matters put to the vote of the outstanding
     7         security holders.
     8             (iii)  If an institutional investor changes its
     9         investment intent, or if the board finds reasonable cause
    10         to believe that the institutional investor may be found
    11         unqualified, no action other than divestiture shall be
    12         taken by the investor with respect to its security
    13         holdings until there has been compliance with Chapter 12,
    14         including the execution of a trust agreement.
    15             (iv)  The table game licensee and its relevant
    16         holding, intermediary or subsidiary company shall
    17         immediately notify the board of any information about, or
    18         actions of, an institutional investor holding its equity
    19         or debt securities if the information or action could
    20         impact the eligibility of the institutional investor for
    21         a waiver pursuant to this paragraph.
    22         (7)  If at any time the board finds that an institutional
    23     investor holding any security of a holding or intermediary
    24     company of a table game licensee, or, where relevant, of
    25     another subsidiary company of a holding or intermediary
    26     company of a table game licensee that is related in any way
    27     to the financing of the table game licensee, fails to comply
    28     with the requirements of paragraph (6), or if at any time the
    29     board finds that, by reason of the extent or nature of its
    30     holdings, an institutional investor is in a position to
    20070H2121B2339                 - 77 -     

     1     exercise such a substantial impact upon the controlling
     2     interests of a table game licensee that qualification of the
     3     institutional investor is necessary to protect the public
     4     interest, the board may, in accordance with the provisions of
     5     paragraphs (1), (2), (3), (4) and (5) or sections 2102 and
     6     2103, take any necessary action to protect the public
     7     interest, including requiring the institutional investor to
     8     be qualified under this act.
     9  Section 602.  Disqualification for licensure.
    10     (a)  Disqualification criteria.--The board shall deny a table
    11  game license to any applicant or licensed gaming entity who is
    12  disqualified based on any of the following criteria:
    13         (1)  Failure of the licensed gaming entity to maintain a
    14     slot machine license.
    15         (2)  Failure of the applicant or licensed gaming entity
    16     to prove by clear and convincing evidence that the applicant
    17     is qualified for a table game license in accordance with this
    18     act.
    19         (3)  Failure of the applicant or licensed gaming entity
    20     to provide information, documentation and assurances required
    21     by this act or requested by the board, or failure of the
    22     applicant to reveal any fact material to qualification, or
    23     the supplying of information that is untrue or misleading as
    24     to a material fact pertaining to the qualification criteria.
    25         (4)  Contumacious defiance by the applicant or licensed
    26     gaming entity or any person who is required to be qualified
    27     under this act of any legislative investigatory body or other
    28     official investigatory body of this Commonwealth or any state
    29     or of the United States or other jurisdiction when that body
    30     is engaged in the investigation of crimes relating to
    20070H2121B2339                 - 78 -     

     1     gambling, official corruption or organized crime activity.
     2     (b)  Automatic disqualification.--No applicant for a license,
     3  permit or registration under this act, including any director,
     4  owner, principal employee or table game key employee, that has
     5  been convicted in any jurisdiction of a felony or gambling
     6  offense within the past 15 years shall be issued a license,
     7  permit or registration under this act or be found qualified to
     8  serve in a position with or associated with any table game
     9  licensee, permittee or registrant. In addition, the board shall
    10  deny a table game license to any applicant or person who is
    11  automatically disqualified based on the following:
    12         (1)  An attempt to commit or a conviction of the
    13     applicant, or by any person required to be qualified under
    14     this act as a condition for the issuance of a table game
    15     license, for one or more of the following offenses under 18
    16     Pa.C.S (relating to crimes and offenses):
    17             (i)  Section 911 (relating to corrupt organizations).
    18             (ii)  Chapter 25 (relating to criminal homicide).
    19             (iii)  Section 2701 (relating to simple assault).
    20             (iv)  Chapter 29 (relating to kidnapping).
    21             (v)  Chapter 31 (relating to sexual offenses).
    22             (vi)  Chapter 33 (relating to arson, criminal
    23         mischief and other property destruction).
    24             (vii)  Chapter 35 (relating to burglary and other
    25         criminal intrusion) when the offense is graded a felony.
    26             (viii)  Chapter 37 (relating to robbery).
    27             (ix)  Chapter 39 (relating to theft and related
    28         offenses).
    29             (x)  Section 4108 (relating to commercial bribery and
    30         breach of duty to act disinterestedly).
    20070H2121B2339                 - 79 -     

     1             (xi)  Section 4101 (relating to forgery).
     2             (xii)  Section 4109 (relating to rigging publicly
     3         exhibited contest).
     4             (xiii)  Section 4114 (relating to securing execution
     5         of documents by deception).
     6             (xiv)  Section 4117 (relating to insurance fraud).
     7             (xv)  Chapter 47 (relating to bribery and corrupt
     8         influence).
     9             (xvi)  Chapter 49 (relating to falsification and
    10         intimidation).
    11             (xvii)  Section 5111 (relating to dealing in proceeds
    12         of unlawful activities.
    13             (xviii)  Section 5512 (relating to lotteries, etc.).
    14             (xix)  Section 5513 (relating to gambling devices,
    15         gambling, etc.).
    16             (xx)  Section 5514 (relating to pool selling and
    17         bookmaking).
    18             (xxi)  Chapter 59 (relating to public indecency).
    19         (2)  An offense designated as a felony under the act of
    20     April 14, 1972 (P.L.233, No.64), known as The Controlled
    21     Substance, Drug, Device and Cosmetic Act.
    22         (3)  An attempt to commit or a conviction for an offense
    23     in another state or jurisdiction or a Federal offense, that
    24     is similar in nature to the offenses enumerated in paragraphs
    25     (1) and (2).
    26         (4)  An attempt to commit or a conviction for any other
    27     offense under Federal or State law or laws of other states or
    28     jurisdictions that indicates that licensure of the applicant
    29     for a table game license or other person required to be
    30     qualified under this act would be inimical to the policy and
    20070H2121B2339                 - 80 -     

     1     purpose of this act and to table game operations in this
     2     Commonwealth. The automatic disqualification requirement of
     3     this paragraph, at the discretion of the board, shall not
     4     apply with regard to any conviction that did not occur within
     5     the 15-year period immediately preceding application for
     6     licensure and that the applicant demonstrates by clear and
     7     convincing evidence does not justify automatic
     8     disqualification pursuant to this subsection and any
     9     conviction that has been the subject of judicial order of
    10     expungement or sealing.
    11         (5)  Current prosecution or pending charges in any
    12     jurisdiction of the applicant or of any person who is
    13     required to be qualified under this act as a condition for a
    14     table game license for any of the offenses enumerated in
    15     paragraph (1)(i). At the request of the applicant or person
    16     charged, the board shall defer decision upon the application
    17     during the pendency of the charge.
    18         (6)  The pursuit of the applicant or any person who is
    19     required to be qualified under this act as a condition of a
    20     table game license of economic gain in an occupational manner
    21     or context that is in violation of the criminal laws of this
    22     Commonwealth, if the pursuit creates a reasonable belief that
    23     the participation of the person in table game operations
    24     would be inimical to the policies of this act or to legalized
    25     gambling in this Commonwealth. For the purposes of this
    26     paragraph, "occupational manner or context" shall mean the
    27     systematic planning, administration, management or execution
    28     of any activity for financial gain.
    29         (7)  The identification of the applicant or any person
    30     who is required to be qualified under this act as a condition
    20070H2121B2339                 - 81 -     

     1     for a table game license as a career offender or a member of
     2     a career offender cartel or an associate of a career offender
     3     or career offender cartel in a manner that creates a
     4     reasonable belief that the association is of a nature as to
     5     be inimical to the policy of this act and to table game
     6     operations in this Commonwealth. For the purpose of this
     7     paragraph, "career offender" means a person whose behavior is
     8     pursued in an occupational manner or context for the purpose
     9     of economic gain, utilizing methods that are deemed criminal
    10     violations of the laws of this Commonwealth or of the Federal
    11     Government, another state or jurisdiction. A "career offender
    12     cartel" means any group of persons who operate together as
    13     career offenders.
    14         (8)  The commission by the applicant or any person who is
    15     required to be qualified under this act as a condition of a
    16     table game license of any act or acts which would constitute
    17     an offense under paragraph (1)(i), even if the conduct has
    18     not been or may not be prosecuted under the criminal laws of
    19     this Commonwealth or any other jurisdiction or has been
    20     prosecuted under the criminal laws of this Commonwealth or
    21     any other jurisdiction and the prosecution has been
    22     terminated in a manner other than with a conviction.
    23  Section 603.  Order approving or denying table game license and
    24                 investigation.
    25     (a)  Investigation of applicants for table game license.--
    26  Notwithstanding any other provision of law to the contrary, the
    27  following shall apply to the investigation of applicants for a
    28  table game license or qualification under this act:
    29         (1)  Upon the filing of an application for a table game
    30     license and supplemental information as the board may
    20070H2121B2339                 - 82 -     

     1     require, the board shall direct the bureau or Pennsylvania
     2     State Police to conduct an investigation into the
     3     qualification of the applicant. The board may conduct a
     4     hearing concerning the qualification of the applicant in
     5     accordance with the requirements of this act and regulations
     6     of the board.
     7         (2)  After the investigation and hearing, if a hearing is
     8     conducted, the board may either deny the application or
     9     approve the issuance of a table game license to an applicant
    10     whom it determines to be qualified to hold the license.
    11         (3)  When an application is denied, the board shall
    12     prepare and file an order indicating that the application was
    13     denied and the general reasons for the denial, and if
    14     requested by the applicant, the board shall further prepare
    15     and file a statement of the reasons for the denial, including
    16     specific findings of facts.
    17         (4)  After an application is submitted to the board,
    18     final action of the board shall be taken within 90 days after
    19     completion of all hearings and investigations and the receipt
    20     of all information required by the board. All investigations,
    21     hearings and other work of the board related to the review of
    22     an application for a table game license shall be performed in
    23     no more than 60 days of the receipt of the application,
    24     unless the 60-day period is extended by the board due to
    25     extenuating circumstances or other factors that are not due
    26     to a neglect or failure of the applicant.
    27     (b)  Issuance of license.--If satisfied that an applicant is
    28  eligible and qualified to receive a table game license, and upon
    29  tender of all license and application fees required by this act
    30  and by regulations of the board, and any bonds that the board
    20070H2121B2339                 - 83 -     

     1  may require for the faithful performance of all requirements
     2  imposed by law or regulation, the board shall issue a license
     3  for an initial term of one year.
     4     (c)  Power of board to reopen.--The board may reopen an
     5  application for a table game license or a licensing hearing at
     6  any time upon its motion or upon a request of the bureau or upon
     7  petition of the Pennsylvania State Police, Office of Attorney
     8  General or other law enforcement agency.
     9  Section 604.  Renewal of table game license.
    10     (a)  Authority to renew.--Subject to the power of the board
    11  to deny, revoke or suspend a table game license, any table game
    12  license in force shall be renewed by the board for the next
    13  succeeding license period upon proper application for renewal by
    14  the table game licensee and approval of the application by the
    15  board. Applications to renew a table game license shall be
    16  accompanied by a license renewal fee of $500,000 and any other
    17  fees required by regulation of the board. The application for
    18  renewal of a table game license shall be filed with the board no
    19  later than 90 days prior to the expiration date of the current
    20  license.
    21     (b)  Term of renewed license.--The license period for a
    22  renewed table game license shall be one year for each of the
    23  first two renewal periods succeeding the initial issuance of the
    24  license. Thereafter, the board by regulation may establish a
    25  longer renewal period, which shall not exceed four years, and
    26  commensurate renewal fees for the issuance of a license for the
    27  longer renewal period.
    28     (c)  Issuance.--Upon the approval of an application to renew
    29  a table game license, the board shall issue an appropriate
    30  renewal certificate or validating device or sticker, which shall
    20070H2121B2339                 - 84 -     

     1  be attached to the original table game license. The renewal
     2  certificate or validating device or sticker shall be designed to
     3  indicate that the table game license has been renewed and the
     4  period covering the renewal. No renewal certificate or
     5  validating device or sticker shall be issued until the board
     6  receives the table game license renewal fee.
     7  Section 605.  Bond.
     8     Prior to the issuance of a table game license, the applicant
     9  approved for the table game license shall post a bond in an
    10  amount of not less than $1,000,000 made payable to the
    11  Commonwealth of Pennsylvania. The bond shall be used to
    12  guarantee that the table game licensee faithfully makes the
    13  payments, maintains the books and records, makes the reports,
    14  and conducts its table game operations in conformance with the
    15  requirements of this act and the rules and regulations
    16  promulgated by the board pursuant to this act. The bond may be
    17  applied by the board to the payment of any unpaid liability of
    18  the table game licensee under this act. The bond shall not be
    19  cancelled by a surety on less than 30 days' notice in writing to
    20  the board. If a bond is cancelled and the table game licensee
    21  fails to file a new bond with the board in the required amount
    22  on or before the effective date of the cancellation, the
    23  licensee's table game license shall be revoked or suspended by
    24  the board. The total and aggregate liability of the surety on
    25  the bond is limited to the amount specified in the bond. The
    26  bond may be furnished in cash or negotiable securities, by a
    27  surety bond guaranteed by a satisfactory guarantor, or by an
    28  irrevocable letter of credit issued by a banking institution of
    29  this Commonwealth or another jurisdiction acceptable to the
    30  board. If furnished in cash or negotiable securities, the
    20070H2121B2339                 - 85 -     

     1  principal shall be placed without restriction at the disposal of
     2  the board, but any income shall inure to the benefit of the
     3  table game licensee. In no case shall the bond that may be
     4  required under this subsection exceed $1,000,000.
     5  Section 606.  Confidentiality of information.
     6     (a)  Confidentiality of information.--All information
     7  received by the board in the application process from any
     8  applicant for a license, permit or registration under this act,
     9  including the report of an applicant's background investigation,
    10  regardless of source, shall be considered confidential and shall
    11  not be disclosed, in whole or in part, except that the
    12  information may be released upon the lawful order of a court of
    13  competent jurisdiction, or with the approval of the Attorney
    14  General, to an authorized law enforcement agency. Confidential
    15  information may be released, in whole or in part, to the public
    16  to the extent that the release is requested by the applicant and
    17  does not otherwise contain confidential information about
    18  another person. The board may not require any applicant to waive
    19  confidentiality provided in this section as a condition for the
    20  approval and issuance of a table game license or any other
    21  action of the board. Any person who violates the provisions of
    22  this section shall be administratively disciplined by discharge,
    23  suspension or other formal disciplinary action, as the board may
    24  deem appropriate.
    25     (b)  Notice.--Notice of the contents of any information,
    26  except to an authorized law enforcement agency pursuant to this
    27  section, shall be given to any applicant or licensee in a manner
    28  prescribed by regulation adopted and promulgated by the board.
    29     (c)  Information held by department.--Files, records and
    30  other information in the possession of the department pertaining
    20070H2121B2339                 - 86 -     

     1  to licensees shall be made available upon request or otherwise
     2  to the board, as may be necessary to effectuate the
     3  administration of this act.
     4                             CHAPTER 7
     5                  TABLE GAME KEY EMPLOYEE LICENSE
     6  Section 701.  Licensure of table game key employees.
     7     (a)  Licensure required.--No person may be employed by a
     8  table game licensee as a key employee unless the person is the
     9  holder of a current and valid table game key employee license
    10  issued by the board in accordance with this chapter.
    11     (b)  Application requirements.--Each applicant for a table
    12  game key employee license shall, prior to the approval of a key
    13  employee license, produce information, documentation and
    14  assurances concerning the following qualification criteria:
    15         (1)  Each applicant for a table game key employee license
    16     shall produce the information, documentation and assurances
    17     required to establish by clear and convincing evidence the
    18     integrity, responsibility and financial stability, if
    19     applicable, of the person applying for licensure as a key
    20     employee, including, but not limited to, bank references,
    21     business and personal income and disbursements schedules, tax
    22     returns, other reports filed with governmental agencies as
    23     required by the board and business and personal accounting
    24     and check records and ledgers. In addition, each applicant
    25     shall in writing authorize the examination of all bank
    26     accounts and records as may be deemed necessary by the board.
    27         (2)  Each applicant for a table game key employee license
    28     shall:
    29             (i)  Produce the information, documentation and
    30         assurances required to establish by clear and convincing
    20070H2121B2339                 - 87 -     

     1         evidence the applicant's good character, honesty and
     2         integrity. The information shall include, but is not
     3         limited to, data pertaining to family, habits, character,
     4         reputation, criminal and arrest record, business
     5         activities, financial affairs and business, professional
     6         and personal associates, covering at least the ten-year
     7         period immediately preceding the filing of the
     8         application for licensure under this act.
     9             (ii)  Inform the board of any civil judgments
    10         obtained against the applicant pertaining to antitrust or
    11         security regulation laws of the Federal Government, of
    12         this Commonwealth or of any other state or jurisdiction,
    13         foreign or domestic.
    14             (iii)  Upon request of the board or bureau, produce
    15         letters of reference from law enforcement agencies having
    16         jurisdiction in the applicant's place of residence and
    17         principal place of business, if applicable. The letters
    18         of reference shall indicate that the relevant law
    19         enforcement agencies do not have any pertinent
    20         information concerning the applicant, or if a law
    21         enforcement agency does have information pertaining to
    22         the applicant, the letter of reference shall specify the
    23         nature of the information.
    24             (iv)  If the applicant has been associated with
    25         gaming or casino operations in any capacity, position or
    26         employment in a jurisdiction which permits that activity,
    27         the applicant, upon request of the board or bureau, shall
    28         produce a letter or letters of reference from the gaming
    29         or casino enforcement or control agency of the other
    30         jurisdiction. The letter or letters of reference shall
    20070H2121B2339                 - 88 -     

     1         specify the experience of the agency with the applicant,
     2         if any, and the applicant's associates and participation
     3         in the gaming or casino operations of that jurisdiction,
     4         if any. If no letter or letters of reference are received
     5         from the appropriate gaming or casino enforcement or
     6         control agency within 30 days of the applicant's request,
     7         the applicant may submit a statement under oath that the
     8         applicant is or was during the period that the activities
     9         were conducted, in good standing with the gaming or
    10         casino enforcement or control agency of the jurisdiction,
    11         provided that the applicant was or is in good standing
    12         with the gaming and casino enforcement or control agency
    13         in the other jurisdiction.
    14             (v)  Be a resident of this Commonwealth prior to the
    15         issuance of a key employee license. However, upon
    16         petition by the holder of a table game license, the board
    17         may waive this residency requirement for any applicant
    18         whose particular position will require employment outside
    19         this Commonwealth.
    20             (vi)  Be subject to all the criminal history record
    21         background investigation and fingerprint requirements of
    22         4 Pa.C.S. Pt. II (relating to gaming).
    23     (c)  Waiver.--The board may, on a case-by-case basis, by
    24  regulation, waive the requirements of subsection (b) for any
    25  person who has been approved for and who holds a slot machine
    26  key employee license under 4 Pa.C.S. Pt. II, which license was
    27  issued by the board within a 24-month period immediately
    28  preceding the date of application for a table game key employee
    29  license, unless there have been material changes that
    30  necessitate, at the discretion of the board, that the
    20070H2121B2339                 - 89 -     

     1  requirements of subsection (b) not be waived.
     2  Section 702.  Denial of license.
     3     The board shall deny a key employee license to any applicant
     4  who is disqualified based on the criteria set forth in section
     5  602.
     6  Section 703.  Petition for temporary license.
     7     Upon petition by a holder of a table game license, the board
     8  may issue a temporary table game key employee license to an
     9  applicant, provided that:
    10         (1)  The applicant for the key employee license has filed
    11     a complete application with the board.
    12         (2)  The bureau certifies to the board that the completed
    13     key employee license application has been in the possession
    14     of the bureau for at least 15 days.
    15         (3)  The petition for a temporary key employee license
    16     certifies, and the board finds, that:
    17             (i)  An existing key employee position of the table
    18         game licensee making the petition is vacant or will
    19         become vacant within 60 days of the date of the petition.
    20             (ii)  The issuance of a temporary key employee
    21         license is necessary to fill the vacancy on an emergency
    22         basis to continue the efficient operation of the table
    23         game facility.
    24             (iii)  The circumstances supporting the petition for
    25         a temporary key employee license are extraordinary and
    26         not designed to circumvent the normal key employee
    27         licensing procedures under this act.
    28                             CHAPTER 8
    29               TABLE GAME EMPLOYEE OCCUPATION PERMIT
    30  Section 801.  Occupation permit required.
    20070H2121B2339                 - 90 -     

     1     Any person who desires employment as a table game employee in
     2  a licensed table game facility shall submit an application to
     3  the board for an occupation permit as a table game employee. No
     4  person may commence employment as a table game employee unless
     5  the person is the holder of a current and valid occupation
     6  permit issued by the board in accordance with the requirements
     7  of this act.
     8  Section 802.  Requirements for permit.
     9     (a)  General rule.--An applicant for a table game employee
    10  occupation permit shall produce the information, documentation
    11  and assurances that the board may require. The application for a
    12  table game employee occupation permit shall include, in addition
    13  to any other information the board by regulation may require,
    14  the following:
    15         (1)  The name and home address of the applicant.
    16         (2)  The employment history of the applicant.
    17         (3)  The criminal history record of the applicant, as
    18     well as the applicant's consent for the Pennsylvania State
    19     Police to conduct a background investigation. The applicant
    20     shall bear the cost of the background investigation,
    21     including all costs for administering and processing the
    22     background investigation.
    23         (4)  A photograph of the applicant taken no more than
    24     three months preceding the date of the application for the
    25     permit.
    26         (5)  A handwriting exemplar of the applicant.
    27         (6)  The details of any casino or gaming license, permit
    28     or registration granted or denied the applicant in any other
    29     jurisdiction, and consent for the board to obtain copies of
    30     applications submitted or licenses, permits or registrations
    20070H2121B2339                 - 91 -     

     1     issued in such other jurisdictions.
     2     (b)  Board action.--Subsequent to the issuance of a table
     3  game employee occupation permit, the board may revoke, suspend,
     4  limit, condition or otherwise restrict the permit upon a finding
     5  that the permittee is disqualified pursuant to the criteria set
     6  forth in section 602.
     7  Section 803.  Residency.
     8     The board may require by regulation that all applicants for a
     9  table game employee occupation permit be residents of this
    10  Commonwealth for a period not to exceed six months immediately
    11  preceding the issuance of the occupation permit, although
    12  application may be made prior to the expiration of the required
    13  period of residency. The board shall by resolution waive the
    14  required residency period for an applicant upon a showing that
    15  the residency period would cause undue hardship upon the table
    16  game licensee that intends to employ the applicant or upon a
    17  showing of other good cause.
    18  Section 804.  Convictions not basis for denial of permit.
    19     (a)  Considerations.--Notwithstanding section 602 or any
    20  other provision of law or regulation to the contrary, no
    21  applicant for a table game employee occupation permit shall be
    22  denied a permit based on a conviction of any offense enumerated
    23  in this act as disqualification criteria or the commission of
    24  any act or acts that would constitute any offense under section
    25  602(b) if the applicant has affirmatively demonstrated
    26  rehabilitation. In determining whether the applicant has
    27  affirmatively demonstrated rehabilitation, the board shall
    28  consider the following:
    29         (1)  The conviction would create a reasonable belief that
    30     the nature of the offense would be inimical to the policy
    20070H2121B2339                 - 92 -     

     1     purposes of this act and to table game operations and the
     2     gaming industry in this Commonwealth.
     3         (2)  Issuance of the permit would or would not be in the
     4     public interest.
     5         (3)  The applicant has affirmatively demonstrated
     6     rehabilitation. In determining whether the applicant has
     7     affirmatively demonstrated rehabilitation, the board shall
     8     consider all of the following:
     9             (i)  The nature and duties of the position applied
    10         for.
    11             (ii)  The nature and seriousness of the offense or
    12         conduct, including whether the crime, offense or
    13         conviction is enumerated in section 602(b).
    14             (iii)  The circumstances under which the offense or
    15         conduct occurred.
    16             (iv)  The date of commission of the offense or
    17         conduct, provided, however, that no applicant for a table
    18         game employee occupation permit under this act who has
    19         been convicted in any jurisdiction, foreign or domestic,
    20         of a felony or gambling offense within the past 15 years
    21         shall be issued a table game employee occupation permit
    22         under this act or be determined qualified to serve as a
    23         table game employee with any table game licensee.
    24             (v)  The age of the applicant at the time the offense
    25         or conduct was committed.
    26             (vi)  Whether the offense or conduct was an isolated
    27         or repeat incident.
    28             (vii)  Any social conditions that may have
    29         contributed to the offense or conduct.
    30             (viii)  Any evidence of rehabilitation, including
    20070H2121B2339                 - 93 -     

     1         good conduct in prison or in the community, counseling or
     2         psychiatric treatment received, acquisition of additional
     3         academic or vocational schooling, successful
     4         participation in correctional work-release programs or
     5         the recommendation of persons who have or have had the
     6         applicant under supervision, including Federal, State or
     7         local probation or parole officers.
     8     (b)  List of crimes and offenses.--The board shall establish
     9  a list of crimes, offenses and convictions that would result in
    10  the automatic disqualification of an applicant for a table game
    11  occupation permit under this section. In developing the list,
    12  the board shall consider and determine all of the following:
    13         (1)  Whether the crime or offense is or is not a crime or
    14     offense enumerated in section 602(b). The crimes and offenses
    15     enumerated in section 602(b) shall be incorporated in the
    16     list established by the board under this subsection.
    17         (2)  Whether the crime or offense committed is directly
    18     or indirectly related to employment positions of the table
    19     game industry.
    20         (3)  Whether the crime or offense has a direct or
    21     indirect relationship to table game operations.
    22         (4)  Whether the conviction or disposition would be
    23     inimical to the policies and purposes of this act, to table
    24     game operations and the gaming industry in this Commonwealth.
    25     (c)  Responsibility of Pennsylvania State Police.--Whenever
    26  feasible, the Pennsylvania State Police shall promptly notify
    27  the board and the bureau in the event that a current or
    28  prospective table game employee, who was the subject of a
    29  criminal history record background investigation under this act,
    30  is arrested for a crime or offense in this Commonwealth or
    20070H2121B2339                 - 94 -     

     1  another jurisdiction after the date of the initial background
     2  investigation. The board shall promulgate regulations to govern
     3  the notification requirements under this subsection and under
     4  section 904(d). The Pennsylvania State Police shall collaborate
     5  with the bureau and local law enforcement to carry out the
     6  requirements of this subsection and section 904(d).
     7                             CHAPTER 9
     8                    TABLE GAME SERVICE EMPLOYEES
     9  Section 901.  Table game service employees registration
    10                 required.
    11     No person may commence employment as a table game service
    12  employee unless the person has registered with the board in
    13  accordance with this chapter. Registration as a table game
    14  service employee may only be granted by petition of the holder
    15  of a table game license in accordance with section 905.
    16  Section 902.  Application requirements.
    17     An applicant for a table game service employee registration
    18  shall produce information, documentation and assurances as the
    19  board shall require. In addition to any other information,
    20  documentation or assurances the board may require, an applicant
    21  for table game service employee registration shall be subject to
    22  the table game employee occupation permit requirements under
    23  section 802.
    24  Section 903.  Residency.
    25     The board may by regulation require that all applicants for
    26  table game service employee registration be residents of this
    27  Commonwealth for a period not to exceed three months immediately
    28  preceding the issuance of the registration, although application
    29  may be made prior to the expiration of the required period of
    30  residency. The board may by resolution waive the required
    20070H2121B2339                 - 95 -     

     1  residency period for an applicant upon a showing that the
     2  residency period would cause undue hardship upon the table game
     3  licensee that intends to employ the applicant or upon a showing
     4  of other good cause.
     5  Section 904.  Convictions not basis for revocation of
     6                 registration.
     7     (a)  Considerations.--Notwithstanding the provisions of
     8  section 602 or any other provision of law or regulation to the
     9  contrary, no table game service employee registration shall be
    10  revoked based on a conviction of an offense in any jurisdiction
    11  as disqualification criteria or the commission of any act or
    12  acts that would constitute any offense under section 602(b) if
    13  the registrant has affirmatively demonstrated rehabilitation. In
    14  determining whether the applicant has affirmatively demonstrated
    15  rehabilitation, the board shall consider the following:
    16         (1)  The conviction would create a reasonable belief that
    17     the nature of the offense would be inimical to the policy
    18     purposes of this act and to table game operations and the
    19     gaming industry in this Commonwealth.
    20         (2)  The applicant for registration has affirmatively
    21     demonstrated rehabilitation. In determining whether the
    22     applicant has affirmatively demonstrated rehabilitation, the
    23     board shall consider all of the following:
    24             (i)  The nature and duties of the position applied
    25         for.
    26             (ii)  The nature and seriousness of the crime,
    27         offense or conviction, including whether the crime,
    28         offense or conviction is enumerated in section 602(b).
    29             (iii)  The circumstances under which the offense or
    30         conduct occurred.
    20070H2121B2339                 - 96 -     

     1             (iv)  The date of the crime, offense or conviction,
     2         provided, however, that no applicant for table game
     3         service employee registration under this act who has been
     4         convicted in any jurisdiction, foreign or domestic, of a
     5         felony or gambling offense within the past 15 years shall
     6         be issued a table game service employee registration
     7         under this act or be determined qualified to serve in a
     8         position as a table game service employee with any table
     9         game licensee or table game service industry.
    10             (v)  The age of the applicant at the time the crime,
    11         offense or conduct was committed.
    12             (vi)  Whether the crime, offense or conduct was an
    13         isolated or repeat incident.
    14             (vii)  Any social conditions that may have
    15         contributed to the crime, offense or conduct.
    16             (viii)  Any evidence of rehabilitation, including
    17         good conduct in prison or in the community, counseling or
    18         psychiatric treatment received, acquisition of additional
    19         academic or vocational schooling or training, successful
    20         participation in correctional work-release programs or
    21         the recommendation of persons who have or have had the
    22         applicant under supervision, including Federal, State or
    23         local probation or parole officers.
    24     (b)  Waiver.--The board may waive any disqualification
    25  criterion of a table game service employee consistent with the
    26  policy purposes of this act and upon a finding that the interest
    27  of justice and the public interest so require.
    28     (c)  List of crimes, offenses and convictions.--The board
    29  shall establish a list of crimes, offenses and convictions that
    30  would result in the automatic disqualification of an applicant
    20070H2121B2339                 - 97 -     

     1  for registration under this chapter. In developing the list, the
     2  board shall consider and determine all of the following:
     3         (1)  Whether the crime, offense or conviction is a crime
     4     or offense or conviction enumerated in section 602(b).
     5         (2)  Whether the crime or offense committed is directly
     6     or indirectly related to employment positions of the table
     7     game industry.
     8         (3)  Whether the crime or offense has a direct or
     9     indirect relationship to table game operation.
    10         (4)  If the crime or offense has no direct or indirect
    11     relationship, whether the conviction or disposition would be
    12     inimical to the policies and purposes of this act and to
    13     table game operations and the gaming industry in this
    14     Commonwealth.
    15     (d)  Duties of Pennsylvania State Police.--The Pennsylvania
    16  State Police shall promptly notify the board and the bureau in
    17  the event that a current or prospective registrant, who was the
    18  subject of a criminal history record background investigation
    19  pursuant to this act, is arrested for a crime or offense in this
    20  Commonwealth or any other jurisdiction after the date of the
    21  initial background investigation.
    22  Section 905.  Petition for registration.
    23     Upon petition by the holder of a table game license, table
    24  game service employee registration may be granted to each
    25  applicant for registration named in the petition if the petition
    26  certifies that each applicant for registration that is named in
    27  the petition has filed with the board and the board has received
    28  a completed application for table game service employee
    29  registration.
    30  Section 906.  Registration fee.
    20070H2121B2339                 - 98 -     

     1     An application for registration as a table game service
     2  employee shall not be deemed complete unless it is accompanied
     3  by the registration fee which shall not exceed $250 as
     4  established by regulation of the board.
     5                             CHAPTER 10
     6                    TABLE GAME SERVICE INDUSTRY
     7  Section 1001.  Licensure of table game service industry.
     8     All table game service industries offering goods and services
     9  that directly relate to the conduct or operation of table games,
    10  including, but not limited to, schools teaching, among other
    11  things, table game playing or dealing techniques, and security
    12  services, shall be licensed in accordance with this act prior to
    13  conducting any business with a table game licensee and employees
    14  or agents or a table game licensee and, in the case of a school,
    15  prior to the enrollment of any students or offering of any
    16  courses to the public whether for compensation or not. However,
    17  upon a showing of good cause by an applicant for a table game
    18  license or table game licensee for each business transaction,
    19  the board may permit an applicant for a table game service
    20  industry license to conduct or engage in business with the table
    21  game licensee prior to issuing a license to an applicant for a
    22  table game service industry license. The board by resolution
    23  shall set forth any table game service industries that, in
    24  addition to the industries set forth in this chapter, it may
    25  require to be licensed under this act.
    26  Section 1002.  Qualifications of table game service industry.
    27     Each table game service industry, as well as its owners,
    28  managerial, supervisory and principal employees, if the
    29  principal employees have responsibility for furnishing services
    30  to a table game licensee, shall qualify under the standards,
    20070H2121B2339                 - 99 -     

     1  except residency, established by the board for issuance of a
     2  table game key employee license under section 701. Each person
     3  associated with a table game service industry, as determined by
     4  the board, shall be licensed in accordance with the requirements
     5  of Chapter 7 and regulations of the board prior to the
     6  commencement or continuation of any business with a table game
     7  licensee or employees or agents of a table game licensee.
     8  Section 1003.  Table game service industries.
     9     (a)  General rule.--The table game service industry, whether
    10  or not directly related to table game operations, shall include,
    11  in addition to any other entity determined by the board to be a
    12  table game service industry under this act, the following:
    13         (1)  Junket enterprises.
    14         (2)  Suppliers of alcoholic beverages if the suppliers
    15     are other than the Pennsylvania Liquor Control Board.
    16         (3)  Suppliers of food and nonalcoholic beverages.
    17         (4)  Garbage handlers.
    18         (5)  Vending machine providers.
    19         (6)  Linen suppliers.
    20         (7)  Maintenance companies.
    21         (8)  Shopkeepers located within a licensed facility.
    22         (9)  Bus or limousine services.
    23         (10)  Construction companies.
    24         (11)  Gaming schools contracting with applicants for a
    25     table game license or table game licensees or their employees
    26     or agents.
    27     (b)  Exemption.--The board may exempt any person or field of
    28  commerce from the licensing requirements of this chapter, if the
    29  person or field of commerce demonstrates the following:
    30         (1)  That it is regulated by an agency of the
    20070H2121B2339                 - 100 -    

     1     Commonwealth.
     2         (2)  That it will provide goods or services in
     3     unsubstantial or insignificant amounts or quantities.
     4         (3)  That the goods and services provided in accordance
     5     with paragraph (2) will be provided for a limited period of
     6     time not exceeding 30 days.
     7         (4)  That licensing is not deemed necessary in order to
     8     protect the public interest or to accomplish the policies of
     9     this act.
    10  Section 1004.  Restrictions on exempted persons.
    11     Upon granting an exemption to a table game service industry
    12  pursuant to section 1003(b) or at any time after the exemption
    13  is granted, the board may limit or place restrictions upon the
    14  exempted table game service industry, as the board may deem
    15  necessary and in the public interest. The board may require the
    16  exempted person to cooperate with the board and the bureau, and
    17  upon request, to provide information in the same manner as
    18  required of table game service industries licensed pursuant to
    19  this chapter. No exemption shall be granted unless the table
    20  game service industry demonstrates that it complies with or will
    21  comply with the applicable requirements of section 312(b)(1).
    22  Section 1005.  Disqualification.
    23     The board may refuse to issue or deny an application for a
    24  table game service industry license to any person who is
    25  disqualified pursuant to the criteria set forth in section 602.
    26  Section 1006.  Proof of business license and taxes.
    27     No table game service industry license shall be issued to any
    28  person unless the person provides proof of valid business
    29  registration with the Department of State and proof from the
    30  Department of Revenue, the Internal Revenue Service and local
    20070H2121B2339                 - 101 -    

     1  taxing authorities that the person has no delinquent Federal,
     2  State or local tax obligations.
     3  Section 1007.  Subcontractor requirements.
     4     A table game service industry licensed under this act shall
     5  require proof, from any subcontractor to a table game service
     6  industry contract with an applicant for a table game license or
     7  a table game licensee, of valid business registration with the
     8  Department of State. Verification information shall be forwarded
     9  by the table game service industry to the Department of State.
    10  No subcontractor to a table game service industry contract with
    11  a table game applicant or table game licensee shall be entered
    12  into by any table game service industry or contractor unless the
    13  subcontractor first provides proof of valid business
    14  registration in this Commonwealth.
    15                             CHAPTER 11
    16               APPROVAL OR DENIAL OF LICENSE, PERMIT
    17                          OR REGISTRATION
    18  Section 1101.  Investigation.
    19     Upon the filing of an application for any license, permit or
    20  registration or any other qualification or approval required
    21  under this act, other than an application for a table game
    22  license, and after submission of all supplemental information as
    23  the board may require, the board shall direct the bureau or the
    24  Pennsylvania State Police to conduct investigations into the
    25  qualifications of the applicant for the license, permit or
    26  registration. The board shall conduct hearings concerning the
    27  qualifications of the applicant, in accordance with its
    28  regulations, guidelines or policies, as may be necessary to
    29  determine qualifications for the license, permit or registration
    30  applied for.
    20070H2121B2339                 - 102 -    

     1  Section 1102.  Issuance or denial of license, permit or
     2                 registration.
     3     After investigation and hearing, if applicable, for the
     4  approval of an application for a license, permit or registration
     5  under this act, the board may either deny the application or
     6  issue the license, permit or registration to the applicant whom
     7  it determines to be qualified to hold the license, permit or
     8  registration.
     9  Section 1103.  Authority to deny application.
    10     The board shall have the authority to deny or refuse to
    11  approve and issue any application for a license, permit or
    12  registration submitted to it in accordance with this act. When
    13  an application for a license, permit or registration is denied
    14  or refused, the board shall prepare and file an order denying or
    15  refusing to approve and issue the application for the license,
    16  permit or registration with the reasons for the denial or
    17  refusal set forth in the order. If requested by the applicant,
    18  the board shall prepare and file a statement of the reasons for
    19  the denial or refusal, including specific findings of fact.
    20  Section 1104.  Issuance and renewal of license, permit or
    21                 registration.
    22     (a)  Issuance and renewal.--A license, permit or registration
    23  may be issued and renewed as follows:
    24         (1)  Each table game employee occupation permit issued in
    25     accordance with this act shall be issued for an initial term
    26     of three years, upon the payment of the initial permit fee.
    27     The permit, upon the payment of a renewal fee, may be renewed
    28     at the discretion of the board for subsequent terms of four
    29     years each. The board shall establish by regulation the
    30     amount, form, manner and time for payment of subsequent
    20070H2121B2339                 - 103 -    

     1     permit renewal fees.
     2         (2)  Each table game key employee license and table game
     3     service industry license required pursuant to the applicable
     4     provisions of this act shall be issued upon the payment of
     5     the license fee for an initial term of two years. A table
     6     game key employee license or service industry license may,
     7     upon the payment of a renewal fee established by regulation
     8     of the board, be renewed at the discretion of the board for
     9     subsequent terms of four years each. The board shall
    10     establish by regulation the form, manner and time for payment
    11     of subsequent license renewal fees under this paragraph.
    12         (3)  Each table game service employee registration, upon
    13     issuance and payment of the registration fee established by
    14     regulation of the board, shall remain in effect unless
    15     suspended or revoked by the board.
    16     (b)  Authority to condition or restrict.--Upon approval of an
    17  application for a license, permit or registration, the board may
    18  limit or place restrictions upon the licensee, permittee or
    19  registrant as it deems necessary and in the public interest.
    20     (c)  Rehearing.--Notwithstanding any other provision of this
    21  section, the board may reconsider the issuance of any license,
    22  permit or registration issued by it under this act at any time
    23  upon the request of the bureau, the Pennsylvania State Police,
    24  the Office of Attorney General or any other law enforcement
    25  agency.
    26     (d)  Fees.--The board by regulation shall establish
    27  nonrefundable fees for applications for a license, permit or
    28  registration under this act. Except as provided in this act, the
    29  board, through regulation, shall develop any forms, procedures
    30  and any fees it may deem necessary for the annual renewal of any
    20070H2121B2339                 - 104 -    

     1  license, permit or registration renewed in accordance with the
     2  requirements of this act.
     3  Section 1105.  Time for renewal; extension.
     4     Any license, other than a table game license, and any permit
     5  may be renewed upon proper application for renewal and the
     6  payment of fees in accordance with regulations of the board, but
     7  in no event later than the date of expiration of the current
     8  license or permit. Notwithstanding section 1104(a), in order to
     9  facilitate the efficient operation of the board, the board shall
    10  have the authority upon the payment of any renewal fee the board
    11  may by regulation require, to extend the period of any license,
    12  other than a table game license, but in no event shall the
    13  expiration date be extended for more than two years.
    14                             CHAPTER 12
    15                             TRANSFERS
    16  Section 1201.  Transfer of property or security.
    17     (a)  Property.--Notwithstanding any other provision of law or
    18  regulation and except as provided in subsection (b), whenever
    19  any person contracts to transfer any property relating to an
    20  existing table game operation, including security holding in a
    21  table game licensee or holding or intermediary company, under
    22  circumstances that require that the transferee obtain licensure
    23  or qualification in accordance with this act, the contract shall
    24  not specify a closing or settlement date that is earlier than
    25  121 days after the submission of a completed application for a
    26  table game license or qualification to the board. The
    27  application shall include a fully executed and approved trust
    28  agreement executed in accordance with the requirements of this
    29  chapter. Any contract provisions that specify an earlier closing
    30  or settlement date shall be void for all purposes. Subsequent to
    20070H2121B2339                 - 105 -    

     1  the earlier of the report of the board on interim authorization
     2  or 90 days after the timely submission of the completed
     3  application, but no later than the closing or settlement date,
     4  the board shall hold a hearing and render a decision on the
     5  interim authorization of the applicant. If the board grants
     6  interim authorization, subject to the provisions of this
     7  chapter, the closing or settlement may occur without
     8  interruption of table game operations. If the board denies
     9  interim authorization, there shall be no closing or settlement
    10  until the board makes a determination on the qualification of
    11  the applicant, and if the board denies qualification, the
    12  contract shall be terminated for all purposes without liability
    13  on the part of the transferor.
    14     (b)  Security holders.--Notwithstanding any other provision
    15  of law or regulation, whenever any person, as a result of a
    16  transfer of publicly traded securities of a table game licensee
    17  or a holding or intermediary company or a financing entity of a
    18  table game licensee, is required to qualify for licensure under
    19  this act, the person shall:
    20         (1)  Within 30 days after the board determines that
    21     qualification is required or declines to waive qualification
    22     or within any additional time as the board may for good cause
    23     allow, file a completed application for a table game license
    24     or qualification with the board. The application shall
    25     include a fully executed and approved trust agreement in
    26     accordance with section 1203.
    27         (2)  As an alternative, within 120 days after the board
    28     determines that qualification is required or a waiver of
    29     qualification is denied, the person shall divest the
    30     securities as the board may require in order to remove the
    20070H2121B2339                 - 106 -    

     1     need for qualification.
     2         (3)  If the person divests the securities, notice of the
     3     decision to divest shall be filed with the board within 30
     4     days after the board determines that qualification is
     5     required or that a waiver of qualification is denied. No
     6     extension of the time for filing a completed application for
     7     a table game license shall be granted unless the person
     8     submits a written acknowledgment of the jurisdiction of the
     9     board and the obligations imposed under this act.
    10     (c)  Timeliness.--If a person required to file an application
    11  for a table game license under this section fails to do so in a
    12  timely manner, the failure shall constitute a per se
    13  disqualification to continue to act as a security holder, and
    14  the board shall take appropriate action under this act. If a
    15  person files an application in a timely manner, then, subsequent
    16  to the earlier report of the board on interim authorization or
    17  90 days after submission of the completed application for a
    18  table game license, but no later than 120 days after the
    19  submission, the board shall hold a hearing and render a decision
    20  on the interim authorization of the person. The pendency of
    21  proceeding under this section shall not prevent the renewal of a
    22  table game license under this act as long as the person required
    23  by this section to file an application has complied with the
    24  requirements of this section and the provisions of this act.
    25  Section 1202.  Request for interim authorization.
    26     (a)  Granting interim authorization.--The board may grant
    27  interim authorization upon findings by clear and convincing
    28  evidence of the following:
    29         (1)  That statements of compliance have been issued by
    30     the board in accordance with this act.
    20070H2121B2339                 - 107 -    

     1         (2)  That the table game facility is a licensed table
     2     game facility in accordance with the requirements of this
     3     act.
     4         (3)  That the trustee or trustees have satisfied the
     5     qualification criteria applicable to a table game key
     6     employee, except for residency.
     7         (4)  That interim operation will best serve the public
     8     interest and purposes of this act.
     9     (b)  Determination.--The board's consideration of a request
    10  for interim authorization shall include, but not be limited to,
    11  consideration of relevant information that may be presented to
    12  the board by the bureau as the board directs. In responding to a
    13  request for interim authorization and in determining whether to
    14  grant the request, the board and the bureau shall not be
    15  required to disclose any information if disclosure, in the
    16  judgment of the board, would prejudice or otherwise compromise
    17  any continuing investigation.
    18  Section 1203.  Trust agreements.
    19     (a)  General rule.--The following shall apply to trust
    20  agreements:
    21         (1)  Where the applicant is not required to obtain a
    22     table game license, the trust agreement filed pursuant to
    23     this section shall transfer and convey all of the applicant's
    24     present and future right, title and interest in the property
    25     subject to the trust agreement, including all voting rights
    26     in securities, to the trustee.
    27         (2)  If the applicant is required to obtain a table game
    28     license, the trust agreement shall transfer and convey to the
    29     trustee, if the applicant is a corporation, all outstanding
    30     equity securities of the corporation, and if the applicant is
    20070H2121B2339                 - 108 -    

     1     other than a corporation, all outstanding interest in the
     2     applicant.
     3         (3)  The compensation for the service, costs and expenses
     4     of the trustee or trustees shall be stated in the trust
     5     agreement and shall be approved by the board.
     6         (4)  The trust agreement shall, in all instances, contain
     7     any provision the board may deem necessary and desirable.
     8     (b)  Trust agreement operative; timing.--With respect to an
     9  applicant described in section 1201(b), if the board denies
    10  interim authorization, it shall order that the trust agreement
    11  become operative, or take such other action as may be
    12  appropriate in accordance with section 1201. With respect to all
    13  applicants under section 1201, if the board grants interim
    14  authorization, it shall thereafter order that the trust
    15  agreement become operative at any time it finds reasonable cause
    16  to believe that the applicant or any person required to be
    17  qualified in connection with the application may be found
    18  unqualified.
    19     (c)  Rights and powers of trustee.--While the trust agreement
    20  remains operative, the trustee shall exercise all rights
    21  incident to the ownership of the property subject to the trust.
    22  The trustee shall be vested with all powers, authority and
    23  duties necessary to the unencumbered exercise of those rights,
    24  except that the applicant shall have no right to participate in
    25  the earnings of the licensed table game facility or receive any
    26  return on its investment or debt security holdings during the
    27  time the trust is operative.
    28     (d)  Duration of trust agreement.--The trust agreement, once
    29  operative, shall remain operative until the board finds the
    30  applicant qualified, or the board finds the applicant
    20070H2121B2339                 - 109 -    

     1  unqualified and the property subject to the trust is disposed of
     2  in accordance with subsection (e), except that the applicant may
     3  request the board to direct the trustee to dispose of the
     4  property subject to the trust in accordance with subsection (e)
     5  prior to a finding that the applicant is disqualified.
     6     (e)  Disposition of property subject to trust.--If the board
     7  denies qualification to a person subject to the provisions of
     8  this chapter, the trustee shall endeavor and be authorized to
     9  sell, assign, convey or otherwise dispose of all property
    10  subject to the trust to a person who is appropriately licensed
    11  or qualified or has obtained interim authorization in accordance
    12  with section 1202. The disposition of trust property by the
    13  trustee shall be completed within 120 days of the denial of
    14  qualification, or within any additional time the board for good
    15  cause may allow. The proceeds from the disposition of trust
    16  property shall be distributed to the unqualified applicant only
    17  in an amount not to exceed the lower of the actual cost of the
    18  assets to the unqualified applicant or the value of the assets
    19  calculated as if the investment had been made on the date the
    20  trust becomes operative. Any proceeds remaining from the
    21  disposition of trust property in accordance with this subsection
    22  shall be remitted to the State Treasury for deposit in the fund
    23  established under 4 Pa.C.S. § 1403 (relating to establishment of
    24  State Gaming Fund and net slot machine revenue distribution).
    25  Section 1204.  Obligations and responsibilities.
    26     During the period of interim authorization, the board and the
    27  bureau shall continue the procedures that are provided in this
    28  act and the regulations promulgated under this act that are
    29  necessary for a determination of the qualification of the person
    30  granted interim authorization. The obligation and
    20070H2121B2339                 - 110 -    

     1  responsibilities of an applicant for a table game license or a
     2  table game licensee or person required to be qualified are in no
     3  way relieved by the granting of interim authorization.
     4  Section 1205.  Time for determining qualification.
     5     Within nine months after a grant or denial of interim
     6  authorization, the board shall hold a hearing and render a
     7  decision on the qualification of an applicant for a table game
     8  license under this act. The board may extend the period for
     9  determining qualification by one three-month period.
    10                             CHAPTER 13
    11                      CONDITIONS OF OPERATION
    12  Section 1301.  Operation certificate.
    13     (a)  Operation certificate required.--Notwithstanding the
    14  approval and issuance of a license to operate table games, no
    15  licensed table game facility may be open or remain open to the
    16  public, and no table game activity or operations, except for
    17  test purposes, may be conducted at the licensed table game
    18  facility until a valid operation certificate has been issued to
    19  the applicant or licensee by the board. The board shall issue
    20  the operation certificate upon a finding that:
    21         (1)  The licensed gaming entity complies in all respects
    22     with the requirements of this act and will comply with
    23     regulations promulgated by the board under this act.
    24         (2)  The licensed gaming entity has implemented necessary
    25     internal and management controls and security precautions for
    26     the efficient operation and play of table games.
    27         (3)  All employees, where applicable, are licensed,
    28     permitted or registered by the board for the performance of
    29     their respective duties.
    30         (4)  The licensed gaming entity is prepared in all
    20070H2121B2339                 - 111 -    

     1     respects to receive and entertain the public at the licensed
     2     table game facility.
     3     (b)  Authorized table games.--The operation certificate shall
     4  include an itemized list by category and number of the
     5  authorized table games permitted in the particular licensed
     6  table game facility. The licensed gaming entity shall file, in
     7  accordance with regulations promulgated by the board, any
     8  changes in the number of table games authorized for play in its
     9  licensed table game facility, and any changes in the
    10  configuration of the licensed table game facility with the
    11  board. The board shall review the changes in configuration for
    12  compliance with this act and 4 Pa.C.S. Pt. II (relating to
    13  gaming). No changes in the number of table games authorized for
    14  play by the board or in the configuration of the table game
    15  facility shall be made without the approval of the board.
    16     (c)  Duration of certification.--An operation certificate
    17  shall remain in force and effect unless altered in accordance
    18  with subsection (b), or revoked, suspended, limited or otherwise
    19  altered by the board in accordance with this act or regulations
    20  promulgated by the board.
    21  Section 1302.  Condition of continued operation.
    22     It shall be an expressed condition of continued operation
    23  under this act that a licensed gaming entity operating a table
    24  game facility maintain all books, records and documents
    25  pertaining to the licensee's table game operation in a manner
    26  and location within this Commonwealth as approved by the board.
    27  All books, records and documents related to table game
    28  operations shall be maintained separate and apart from all
    29  books, records and documents of the licensed gaming entity's
    30  slot machine operations, including all books and records
    20070H2121B2339                 - 112 -    

     1  pertaining to the provision of credit to table game patrons and
     2  the cashing of checks of table game patrons in accordance with
     3  Chapter 16. All books, records and documents related to table
     4  game operations, including records relating to credit, shall be
     5  immediately available for inspection by the board, the bureau,
     6  the Pennsylvania State Police or agents of the Attorney General
     7  during all hours of operation in accordance with regulations
     8  promulgated by the board and shall be maintained for a period as
     9  the board by regulation may require.
    10  Section 1303.  Hours of operation.
    11     Each licensed table game facility shall be permitted to
    12  operate 24 hours a day. Each licensed gaming entity shall file
    13  with the board a schedule of operating hours prior to the
    14  issuance of an operation certificate. If the table game licensee
    15  proposes any change or modification in scheduled operating
    16  hours, the change or modification shall not be effected until
    17  the table game licensee files a notice of the new operating
    18  hours with the board. The filing shall be made 30 days prior to
    19  the effective date of the proposed change or modification in
    20  hours of operation. This section shall not be construed to limit
    21  a table game licensee in opening its table game facility later
    22  than, or closing its facility earlier than, the times stated in
    23  its schedule of operating hours. Any change or modification in
    24  hours of operation shall comply with the requirements of this
    25  section and with any regulations promulgated by the board
    26  pertaining to modification of hours of operation.
    27                             CHAPTER 14
    28                   GAME AND FACILITY REQUIREMENTS
    29  Section 1401.  Authorized table games.
    30     Nothing in this act shall be construed to permit the
    20070H2121B2339                 - 113 -    

     1  operation of any table games except the operation and conduct of
     2  authorized table games in table game areas of a licensed table
     3  game facility as approved by the board in accordance with this
     4  act and regulations promulgated by the board pursuant to this
     5  act.
     6  Section 1402.  Wagers and payoffs.
     7     All authorized table games shall be conducted and all wagers
     8  and payoffs of winning wagers shall be made in accordance with
     9  regulations promulgated by the board. The regulations
    10  promulgated by the board shall establish the limitations as may
    11  be necessary to assure the vitality of table game operations and
    12  fair odds to patrons. Notwithstanding any provision of this act
    13  or regulation of the board, a table game licensee shall set
    14  minimum and maximum wagers on authorized table games that may be
    15  adjusted from time to time by the licensee in the normal course
    16  of table game operations, except that changes in minimum wagers
    17  at any given table shall not apply to persons already engaged in
    18  wagering at that table when the minimum wager is changed.
    19  Section 1403.  Information to patrons and players.
    20     Each table game licensee shall make available in printed form
    21  to any patron or player, upon request, the complete text of the
    22  rules of the board regarding authorized table games and the
    23  conduct of table games, payoffs of winning wagers, an
    24  approximation of the odds of winning for each wager, and other
    25  advice to the patron or player as the board may require. Each
    26  table game licensee shall prominently post within the table game
    27  area of the licensed table game facility information about table
    28  game rules, payoffs of winning wagers, the odds of winning for
    29  each wager, and other advice to the player as the board by
    30  regulation may require.
    20070H2121B2339                 - 114 -    

     1  Section 1404.  Acceptance of tips.
     2     A dealer may accept tips or gratuities from a patron at the
     3  table game at which the dealer is conducting play, subject to
     4  the provisions of this section. All tips or gratuities shall be
     5  deposited immediately in a lockbox reserved for that purpose,
     6  accounted for and placed in a pool for distribution pro rata
     7  among the dealers. The distribution shall be based upon the
     8  number of hours each dealer worked during the time period when
     9  the tips or gratuities were collected and deposited. The board
    10  may permit the establishment of a separate pool for dealers in
    11  the game of poker or may permit tips or gratuities to be
    12  retained by individual dealers in the game of poker.
    13  Section 1405.  Table game facility requirements.
    14     (a)  Facility.--Each table game licensee shall arrange its
    15  table game facility in a manner as to promote optimum security
    16  of the facility and shall comply in all respects with
    17  regulations of the board. Each table game facility shall
    18  include:
    19         (1)  A closed-circuit television system according to
    20     specifications approved by the board, with access in the
    21     licensed table game facility to the system or its signal
    22     provided to the board, the bureau and agents of the board and
    23     bureau, in accordance with regulations promulgated by the
    24     board.
    25         (2)  One or more rooms or locations within or about the
    26     licensed facility approved by the board as table game space.
    27         (3)  Design specifications that ensure that visibility in
    28     a licensed table game facility is not obstructed in any way
    29     that could interfere with the ability of the licensee, the
    30     board or its agents or the bureau or its agents to oversee
    20070H2121B2339                 - 115 -    

     1     facility operations.
     2     (b)  Count rooms.--Each licensed facility or licensed table
     3  game facility shall contain a count room or other secure space
     4  that may be required by the board for the counting and storage
     5  of cash, coins, tokens and checks received in the conduct of
     6  authorized table games and for the inspection, counting and
     7  storage of dice, cards, tiles, dominoes and chips and other
     8  representatives of value used in the conduct and operation of
     9  authorized table games.
    10     (c)  Gaming tables.--Each gaming table shall be equipped with
    11  a sign indicating the permissible minimum and maximum wagers of
    12  the table. It shall be unlawful for a licensee to require any
    13  wager to be greater than the State minimum or less than the
    14  State maximum. However, any wager actually made by a patron and
    15  not rejected by a licensee prior to the commencement of play
    16  shall be treated as a valid wager.
    17  Section 1406.  Table game devices, apparatus, equipment and
    18                 supplies.
    19     (a)  Limit on location and possession on premises.--Except as
    20  set forth in subsection (b), the following shall apply to table
    21  game devices, apparatuses, equipment and supplies:
    22         (1)  No table game devices, apparatuses, equipment or
    23     supplies shall be possessed, maintained or exhibited by any
    24     person on the premises of a licensed facility except in the
    25     licensed facility's table game area or in a restricted area
    26     used for the inspection, service, repair or storage of the
    27     devices, apparatuses, equipment or supplies and specifically
    28     approved and designated for that purpose by the table game
    29     licensee with the approval of the board.
    30         (2)  Table game devices, apparatuses, equipment or
    20070H2121B2339                 - 116 -    

     1     supplies, which support the conduct of table game operations
     2     in a licensed facility but do not permit or require patron
     3     access, such as computers and other such telecommunications
     4     equipment, may be possessed and maintained by the table game
     5     licensee in restricted areas specifically approved and
     6     designated for that purpose by the board.
     7         (3)  No table game devices, apparatuses, equipment or
     8     supplies shall be possessed, maintained, exhibited, brought
     9     into or removed from a table game area by any person unless
    10     the devices, apparatuses, equipment or supplies:
    11             (i)  Are necessary to the conduct of an authorized
    12         table game.
    13             (ii)  Have permanently affixed, imprinted, impressed
    14         or engraved thereon an identification number or symbol
    15         authorized by the board.
    16             (iii)  Are under the exclusive control of the table
    17         game licensee or employees or agents of the licensee.
    18             (iv)  Are brought into or removed from the table game
    19         area following 24-hour prior notice given to an
    20         authorized agent of the board.
    21     (b)  Exception.--Notwithstanding subsection (a), a person
    22  may, with the prior approval of the board and under terms and
    23  conditions as may be required by the board, possess, maintain or
    24  exhibit a table game device, apparatus, equipment or supplies in
    25  any other area of the licensed facility if the equipment is used
    26  only for nongaming or exhibition purposes.
    27     (c)  Drop boxes.--All drop boxes and other implements in
    28  which cash, coins or tokens are deposited at the gaming tables,
    29  and all areas where drop boxes and other like implements are
    30  kept while in use, shall be equipped with two locking devices or
    20070H2121B2339                 - 117 -    

     1  keys. One drop box locking device or key shall be under the
     2  exclusive control of the board or an agent of the board, and the
     3  second drop box locking device or key shall be under the
     4  exclusive control of the table game licensee. The drop boxes and
     5  other like implements shall not be brought into or removed from
     6  a table game area or locked or unlocked, except at times, in
     7  places and according to procedures that the board by regulation
     8  shall require.
     9     (d)  Chips.--All chips used in the play of authorized table
    10  games shall be of the size and uniform color by denomination as
    11  the board shall require by regulation.
    12  Section 1407.  Restrictions and prohibitions.
    13     It shall be unlawful for:
    14         (1)  Any person to exchange or redeem chips for anything
    15     whatsoever, except for currency, negotiable personal checks,
    16     negotiable counter checks, other chips, coupons or
    17     complimentary vouchers distributed by the table game
    18     licensee. A table game licensee, upon the request of any
    19     person, shall redeem that licensee's gaming chips surrendered
    20     by a person in any amount over $300 with a check drawn upon
    21     the table game licensee's account at any banking institution
    22     in this Commonwealth or other jurisdiction as approved by the
    23     board and made payable to that person.
    24         (2)  Any table game licensee or an agent or employee of a
    25     table game licensee to employ, contract with or use any shill
    26     or barker to induce or entice, or attempt to induce or
    27     entice, any person to enter a licensed table game facility or
    28     play any table game or for any purpose whatsoever.
    29         (3)  A dealer in any authorized table game in which cards
    30     are dealt, to deal cards by hand or any manner other than
    20070H2121B2339                 - 118 -    

     1     from a device specifically designed for that purpose, unless
     2     otherwise permitted under special circumstances as shall be
     3     defined by regulation of the board.
     4         (4)  Any table game key employee or any person who is
     5     required to hold a key employee license as a condition of
     6     employment or qualification to wager in any licensed facility
     7     in this Commonwealth.
     8         (5)  Any employee, other than an employee who in judgment
     9     of the board is not directly involved with the conduct of
    10     table game operations, to wager in a licensed table game
    11     facility in which the employee is employed or in any other
    12     licensed facility in this Commonwealth that is owned or
    13     operated by the licensed gaming entity that employs the
    14     employee. Any employee other than an employee who, in the
    15     judgment of the board, is not directly involved with the
    16     conduct of table game operations, shall wait at least 30 days
    17     following the date on which the employee either leaves
    18     employment with or is terminated from employment with a table
    19     game licensee before the employee may gamble in a licensed
    20     table game facility in which such employee was formerly
    21     employed or in any other licensed facility in this
    22     Commonwealth that is owned or operated by the licensed gaming
    23     entity that employed the employee.
    24         (6)  Any key employee or boxman, floorman, or any other
    25     employee who serves in a supervisory position to solicit or
    26     accept, and for any other employee to solicit, any tip or
    27     gratuity from any player or patron at the licensed table game
    28     facility where the employee is employed.
    29  Section 1408.  Density requirement.
    30     The board shall, by regulation, determine the permissible
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     1  number and density of table games in a licensed table game
     2  facility. An applicant for or a person issued a license to
     3  operate table games under this act shall limit the density of
     4  the table game facility to no more than 30% of the total gaming
     5  floor space in the licensed facility. It is the intent of the
     6  General Assembly that 70% of the gaming floor space be dedicated
     7  to slot machine gaming and 30% of the gaming floor space be
     8  dedicated to the operation of authorized table games. The
     9  regulations promulgated by the board that determines the
    10  permissible number and density of authorized table games in a
    11  licensed table game facility shall provide that all floor space
    12  in the licensed facility, except for floor space in an approved
    13  hotel, shall be included in any calculation of the permissible
    14  number and density of authorized table games in a licensed
    15  facility.
    16  Section 1409.  Approved hotels.
    17     (a)  Authority to determine suitability and approve.--Nothing
    18  in this act shall be construed to limit the authority of the
    19  board to determine the suitability of and to approve a hotel for
    20  the conduct and operation of authorized table games if the hotel
    21  is designed architecturally to be physically connected to the
    22  licensed facility and meets the requirements of this section.
    23  The board shall determine the suitability of a hotel for the
    24  conduct and operation of authorized table games and the areas of
    25  the hotel in which table games shall be conducted and operated
    26  on a case-by-case basis in accordance with the requirements of
    27  this section.
    28     (b)  Requirements for approval.--The following criteria shall
    29  be used by the board to determine suitability and approve a
    30  hotel for the conduct and operation of authorized table games:
    20070H2121B2339                 - 120 -    

     1         (1)  The approved hotel shall be a single building or two
     2     or more buildings that are physically connected in a manner
     3     deemed appropriate and approved by the board.
     4         (2)  The approved hotel shall consist of at least 350
     5     qualifying sleeping units or a lesser number as established
     6     by the board, except that any lesser number shall not be
     7     lower than 300 sleeping units.
     8         (3)  The approved hotel shall consist of meeting rooms,
     9     banquet rooms, restaurants, exhibition space, shops and
    10     parking areas.
    11         (4)  The total square footage of the approved hotel shall
    12     not be lower than the minimum square footage established by
    13     regulations of the board.
    14         (5)  Architectural designs and specifications for the
    15     construction of the approved hotel are included in the
    16     application for a table game license.
    17     (c)  Certification after approval.--After a hotel is
    18  initially approved, the board shall thereafter rely on the
    19  certification of the table game licensee with regard to the
    20  number of qualifying sleeping units and shall permit
    21  replacement, rehabilitation, renovation and alteration of any
    22  part of the approved hotel even if the replacement,
    23  rehabilitation, renovation or alteration will result temporarily
    24  in a lower number of qualifying sleeping units, provided that
    25  the table game licensee certifies that the replacement,
    26  rehabilitation, renovation or alteration shall be completed
    27  within one year or other reasonable period of time as approved
    28  by the board.
    29     (d)  No additional requirements authorized.--The board shall
    30  not impose any criteria or requirements regarding the contents
    20070H2121B2339                 - 121 -    

     1  of an approved hotel in addition to the criteria and
     2  requirements expressly specified in this section. However, the
     3  board shall be authorized to require each table game licensee to
     4  establish and maintain an approved hotel which is in all
     5  respects a superior, first-class hotel facility of exceptional
     6  quality which will promote the host municipality as a tourist or
     7  convention destination.
     8     (e)  Exceptions.--The provisions of this section shall not
     9  apply to a licensed table game entity that holds a Category 3
    10  slot machine license. An applicant for a table game licensee or
    11  a licensed table game entity who has applied for or who holds a
    12  Category 3 slot machine license shall not be eligible to operate
    13  authorized table games in an approved hotel.
    14     (f)  Prohibition on slot machine operations.--Nothing in this
    15  section shall be construed to authorize the placement of slot
    16  machines or the conduct of slot machine operations in an
    17  approved hotel.
    18                             CHAPTER 15
    19                         INTERNAL CONTROLS
    20  Section 1501.  Internal controls.
    21     (a)  Submission to board.--Each applicant for a table game
    22  license or table game licensee shall submit to the board a
    23  description of its initial system of internal, administrative
    24  and accounting controls for table game operations. The initial
    25  system of internal, administrative and accounting controls
    26  submitted to the board shall be accompanied by:
    27         (1)  A certification by the applicant's or table game
    28     licensee's chief legal officer or equivalent that the
    29     submitted controls conform to the requirements of this act
    30     and the regulations promulgated by the board pursuant to this
    20070H2121B2339                 - 122 -    

     1     act.
     2         (2)  A certification by the applicant's or table game
     3     licensee's chief financial officer or equivalent that the
     4     submitted controls provide adequate and effective accounting
     5     controls, establish a consistent overall system of internal
     6     procedures and administrative and accounting controls and
     7     conform to generally accepted accounting principles.
     8  Each applicant for a table game license or table game licensee
     9  shall make the initial submission required under this subsection
    10  at least 30 days before table game operations are to commence
    11  unless otherwise directed by the board.
    12     (b)  Implementation of modified internal control
    13  procedures.--Except as otherwise provided in this section, a
    14  licensed table game entity, upon submission to the board of a
    15  narrative description of a change in its system of internal,
    16  administrative or accounting controls and the two certifications
    17  required under subsection (a), may, following the 15th day after
    18  the submission, implement the proposed change or modification in
    19  the internal, administrative or accounting controls. Each
    20  initial submission shall contain a narrative description of the
    21  internal, administrative or accounting control system to be
    22  utilized by the licensed table game entity, including, but not
    23  limited to:
    24         (1)  Accounting controls, including the standardization
    25     of forms and definition of terms to be utilized in the table
    26     game operations.
    27         (2)  Procedures, forms, and where appropriate, formulas
    28     covering the calculation of:
    29             (i)  Hold percentages.
    30             (ii)  Revenue drops.
    20070H2121B2339                 - 123 -    

     1             (iii)  Expense and overhead schedules.
     2             (iv)  Complimentary services, except as provided in
     3         Chapter 18.
     4             (v)  Junkets.
     5             (vi)  Cash equivalent transactions.
     6         (3)  Job descriptions and the system of personnel and
     7     chain-of-command, establishing a diversity of responsibility
     8     among employees engaged in table game operations and
     9     identifying primary and secondary managerial and supervisory
    10     positions for all areas of responsibility. The areas of
    11     responsibility shall not be so extensive as to be impractical
    12     for an individual to monitor salary structure and personnel
    13     practices. The personnel practices shall include an
    14     identification and description of any prerequisite, condition
    15     or requirement, other than or in addition to experience,
    16     employment history, education, skill or any other requirement
    17     generally used to determine qualification for a particular
    18     job or job classification, which could be used or will be
    19     used as a factor or factors to determine eligibility,
    20     employability or continued employment.
    21         (4)  Procedures within the cashier's cage for:
    22             (i)  Receipt, storage and disbursal of chips, cash
    23         and other cash equivalents used in the conduct of
    24         authorized table games.
    25             (ii)  Cashing of checks.
    26             (iii)  Redemption of chips and other cash equivalents
    27         used in the conduct of authorized table games.
    28             (iv)  Payoff of jackpots.
    29             (v)  Recording of transactions pertaining to table
    30         game operations.
    20070H2121B2339                 - 124 -    

     1         (5)  Procedures for the collection and security of money
     2     at the gaming tables.
     3         (6)  Procedures for the transfer and recordation of chips
     4     between the gaming tables and the cashier's cage.
     5         (7)  Procedures for the transfer of moneys from the
     6     gaming tables to the counting process.
     7         (8)  Procedures and security for the counting and
     8     recording of revenue.
     9         (9)  Procedures for the security, storage and recordation
    10     of cash, chips and other cash equivalents utilized in table
    11     game operations.
    12         (10)  Procedures for the cashing and recording of checks
    13     exchanged by the licensed table game entity.
    14         (11)  Procedures governing the utilization of a private
    15     security force within the licensed table game facility, as
    16     approved by the board.
    17         (12)  Procedures and security standards for the handling
    18     and storage of gaming apparatus, including cards, dice,
    19     wheels and all other table game equipment, apparatus, devices
    20     and supplies used in the conduct of authorized table games.
    21         (13)  Procedures and rules governing the conduct of
    22     particular table games and the responsibility of the table
    23     game employees in respect to same.
    24         (14)  Procedures for separately recording all
    25     transactions pursuant to Chapter 16 involving any public
    26     official, any executive level State employee or any public
    27     official of a county or municipality in which table games are
    28     authorized at a licensed facility or any table game employee
    29     or key employee, and for the quarterly filing with the board
    30     of a list reporting all such transactions.
    20070H2121B2339                 - 125 -    

     1     (c)  Board review of submissions.--The board shall review
     2  internal, administrative and accounting controls submissions
     3  made pursuant to subsection (a) to determine whether the
     4  submission conforms to the requirements of this act and
     5  regulations promulgated by the board pursuant to this act, and
     6  to ascertain whether the submission provides adequate and
     7  effective controls for the operations of the particular licensed
     8  table game facility submitting it. If the board preliminarily
     9  determines during its review that a procedure in the submission
    10  contains a substantial and material insufficiency likely to have
    11  a direct and materially adverse impact on the integrity of table
    12  game operations or the control of gross table game revenue, the
    13  board, by written notice to the licensed table game entity,
    14  shall:
    15         (1)  Specify the precise nature of the insufficiency and,
    16     when possible, recommend an acceptable alternative procedure.
    17         (2)  Schedule a hearing before the full board no later
    18     than 15 days after the date of written notice to plenarily
    19     and finally determine whether the procedure in question
    20     contains the described insufficiency.
    21         (3)  Direct that the internal, administrative or
    22     accounting control at issue and not yet implemented not be
    23     implemented by the table game licensee until revised and
    24     approved by the board. Upon receipt of the notice, the table
    25     game licensee shall proceed to the scheduled hearing before
    26     the full board and may submit a revised procedure addressing
    27     the board's concerns as specified in the notice.
    28  Section 1502.  Modification of internal controls.
    29     Notwithstanding the requirements of section 1501, the board
    30  shall by regulation permit changes in a table game licensee's
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     1  system of internal, administrative and accounting controls
     2  required by section 1501 that do not have a material impact upon
     3  the integrity of table game operations or the control and
     4  reporting of gross table game revenue from the operation of
     5  table games, including those described in section 1501(b)(3) to
     6  be implemented by a licensed table game entity immediately upon
     7  the preparation and initial filing of the internal controls.
     8  Section 1503.  Additional submissions to board.
     9     Each table game licensee and applicant for a table game
    10  license shall submit a narrative description of its system of
    11  internal controls and administrative and accounting controls for
    12  the recording and reporting of all business transactions and
    13  agreements governing table game service industries, leases and
    14  contracts no later than five days after those operations
    15  commence or no later than five days after any change in the
    16  controls becomes effective.
    17                             CHAPTER 16
    18                               CREDIT
    19  Section 1601.  Restriction on provision of credit.
    20     Except as otherwise provided in this chapter, no table game
    21  licensee or any other person licensed under this act, and no
    22  person acting on behalf of or under any arrangement with a table
    23  game licensee or other person licensed under this act shall:
    24         (1)  Cash any check, make any loan or otherwise provide
    25     or give to any person any credit or advance of anything of
    26     value or a representation of value to enable any person to
    27     play an authorized table game.
    28         (2)  Release or discharge any debt, in whole or in part,
    29     or make any loan that represents any losses incurred by any
    30     player, without maintaining a written record of the debt in
    20070H2121B2339                 - 127 -    

     1     accordance with regulations of the board.
     2  Section 1602.  Acceptance of checks.
     3     (a)  Restrictions.--No table game licensee or any person
     4  licensed or qualified under this act, and no person acting on
     5  behalf of or under any arrangement with a licensee or other
     6  person licensed or qualified under this act, may accept a check,
     7  other than a recognized traveler's check or other cash
     8  equivalent from any person to enable a person to take part in
     9  table game activity as a player, or may give cash or cash
    10  equivalents in exchange for the check unless:
    11         (1)  The check is made payable to the table game
    12     licensee.
    13         (2)  The check is dated, but not postdated.
    14         (3)  The check is presented to the cashier or the
    15     cashier's representative at a location in the licensed table
    16     game facility approved by the board and is exchanged for cash
    17     that totals an amount equal to the amount for which the check
    18     is drawn or the check is presented to the cashier's
    19     representative at a gaming table in exchange for chips that
    20     total an amount equal to the amount for which the check is
    21     drawn.
    22         (4)  The regulations concerning check-cashing procedures
    23     are observed by the table game licensee and its employees and
    24     agents.
    25     (b)  Accounts.--Nothing in this chapter shall be deemed to
    26  preclude the establishment of an account by any person with a
    27  table game licensee by a deposit of cash or recognized
    28  traveler's check or other cash equivalent or a check that meets
    29  the requirements of this section or to preclude the withdrawal,
    30  either in whole or in part, of any amount contained in such
    20070H2121B2339                 - 128 -    

     1  account.
     2     (c)  Requirement for cashing checks.--When a table game
     3  licensee or other person licensed or qualified under this act,
     4  or any person acting on behalf of or under any arrangement with
     5  a table game licensee or other person licensed or qualified
     6  under this act, cashes a check in conformity with the
     7  requirements of subsection (a), the table game licensee shall
     8  deposit or provide for the deposit of the check in a bank for
     9  collection or payment or shall require an attorney or key
    10  employee with no incompatible functions to present the check to
    11  the drawer's bank for payment, within any of the following:
    12         (1)  Seven calendar days of the date of the transaction
    13     for a check in an amount of $1,000 or less.
    14         (2)  Fourteen calendar days of the date of the
    15     transaction for a check in an amount greater than $1,000 but
    16     less than or equal to $5,000.
    17         (3)  Forty-five calendar days of the date of the
    18     transaction for a check in an amount greater than $5,000.
    19     (d)  Check redemption.--
    20         (1)  Notwithstanding any other provision of this section,
    21     the drawer of the check may redeem the check by exchanging
    22     cash, cash equivalents, chips or a check that meets the
    23     requirements of subsection (i) in an amount equal to the
    24     amount for which the check is drawn, the drawer may redeem
    25     the check in part by exchanging cash, cash equivalents, chips
    26     or a check that meets the requirements of subsection (i) and
    27     another check that meets the requirements of subsection (a)
    28     for the difference between the original check and the cash,
    29     cash equivalents, chips or check tendered or the drawer may
    30     issue one check that meets the requirements of subsection (a)
    20070H2121B2339                 - 129 -    

     1     in an amount sufficient to redeem two or more checks drawn to
     2     the order of the licensee.
     3         (2)  If there has been a partial redemption or a
     4     consolidation in conformity with the provisions of this
     5     subsection, the newly issued check shall be delivered to a
     6     bank for collection or payment or presented to the drawer's
     7     bank for payment by an attorney or key employee of the
     8     licensee with no incompatible functions within the period
     9     specified.
    10         (3)  No table game licensee or any person licensed or
    11     qualified under this act shall accept any check or series of
    12     checks in redemption or consolidation of another check or
    13     checks for the purpose of avoiding or delaying the deposit of
    14     a check in a bank for collection or payment or the
    15     presentment of the check to the drawer's bank within the time
    16     period prescribed by this subsection.
    17         (4)  In computing a time period prescribed under this
    18     subsection, the last day of the period shall be included
    19     unless it is a Saturday, Sunday, or a Federal or State
    20     holiday, in which event the time period shall extend to the
    21     next subsequent business day.
    22     (e)  Transfer of check and limitation.--No table game
    23  licensee or any other person licensed or qualified under this
    24  act, or any other person acting on behalf of or under any
    25  arrangement with a table game licensee or other person licensed
    26  or qualified under this act, shall transfer, convey or give,
    27  with or without consideration, a check cashed in conformity with
    28  the requirements of this section to any person other than:
    29         (1)  The drawer of the check upon redemption or
    30     consolidation in accordance with subsection (d).
    20070H2121B2339                 - 130 -    

     1         (2)  A bank for collection or payment of the check.
     2         (3)  A purchaser of the table game license as approved by
     3     the board.
     4         (4)  An attorney or key employee of the licensee with no
     5     incompatible functions for presentment to the drawer's bank.
     6     (f)  Applicability of limitation.--The limitation on
     7  transferability of checks shall apply to checks returned by any
     8  bank or other financial institution to the table game licensee
     9  without full and final payment.
    10     (g)  Collection of unpaid checks.--No person other than a
    11  person licensed as a key employee or as a table game employee in
    12  accordance with this act may engage in activities to collect
    13  payment of checks that have been returned by banks or other
    14  financial institutions without full and final payment, although
    15  an attorney representing the table game licensee may bring
    16  action for the collection of an unpaid check.
    17     (h)  Validity of checks.--Notwithstanding the provisions of
    18  any law or regulation to the contrary, checks cashed in
    19  conformity with the requirements of this act shall be valid
    20  instruments, enforceable at law in the courts of this
    21  Commonwealth. Any check cashed, transferred, conveyed or given
    22  in violation of this act shall be invalid and unenforceable for
    23  the purposes of collection but shall be included in the
    24  calculation of gross table game revenue.
    25     (i)  Additional requirements for acceptance of check.--
    26  Notwithstanding the provisions of subsection (a) to the
    27  contrary, a table game licensee may accept a check from a person
    28  to enable the person to play table games as a player, may give
    29  cash or cash equivalents in exchange for the check or may accept
    30  a check in redemption or partial redemption of a check issued in
    20070H2121B2339                 - 131 -    

     1  accordance with subsection (a), provided that:
     2         (1)  (i) The check is drawn by a table game licensee
     3         pursuant to the relevant provisions of this act or upon
     4         the withdrawal of funds from an account established in
     5         accordance with subsection (b) or is drawn by a table
     6         game licensee as payment for winnings from an authorized
     7         table game.
     8             (ii)  The check is issued by a banking institution
     9         that is chartered in a country other than the United
    10         States on its account at a federally chartered or state-
    11         chartered bank in the United States and is made payable
    12         to "cash," "bearer," a table game licensee or the person
    13         presenting the check.
    14             (iii)  The check is issued by a bank or other
    15         financial institution that is chartered in the United
    16         States on its account at another federally chartered or
    17         state-chartered bank and is made payable to "cash,"
    18         "bearer," a table game license, or the person presenting
    19         the check.
    20             (iv)  The check is issued by an affiliate of a table
    21         game licensee that holds a casino or gaming license in
    22         any jurisdiction.
    23         (2)  The check is identifiable in a manner approved by
    24     the board as a check issued for a purpose listed in paragraph
    25     (1).
    26         (3)  The check is dated, but not postdated.
    27         (4)  The check is presented to the cashier or the
    28     cashier's representative by the original payee and its
    29     validity is verified by the drawer in the case of a check
    30     drawn pursuant to paragraph (1)(i), or the check is verified
    20070H2121B2339                 - 132 -    

     1     in accordance with regulations promulgated by the board in
     2     the case of a check issued pursuant to paragraph (1)(ii),
     3     (iii) and (iv).
     4         (5)  The regulations concerning check-cashing procedures
     5     are observed by the table game licensee and its employees and
     6     agents.
     7     (j)  Check for loan or advance.--No table game licensee shall
     8  issue a check for the purpose of making a loan or otherwise
     9  providing or allowing any advance or credit to a person to
    10  enable the person to take part in table game activity as a
    11  player.
    12     (k)  Acceptance of check outside facility.--Notwithstanding
    13  the provisions of subsections (a), (b), (c) and (d) to the
    14  contrary, a table game licensee may, at a location outside the
    15  licensed facility, accept a personal check or checks from a
    16  person for up to $5,000 in exchange for cash or cash
    17  equivalents, and may, at locations within the licensed table
    18  game facility as permitted by the board, accept a personal check
    19  or checks for up to $5,000 in exchange for cash, cash
    20  equivalents, tokens, chips or plaques to enable the person to
    21  take part in table game activity as a player, provided that:
    22         (1)  The check is drawn on the patron's bank or brokerage
    23     cash management account.
    24         (2)  The check is for a specific amount.
    25         (3)  The check is made payable to the table game
    26     licensee.
    27         (4)  The check is dated, but not postdated.
    28         (5)  The patron's identity is established by examination
    29     of a valid credit card, driver's license, passport or other
    30     form of identification, which contains, at a minimum, the
    20070H2121B2339                 - 133 -    

     1     patron's signature and photograph.
     2         (6)  The check is restrictively endorsed "FOR DEPOSIT
     3     ONLY" to the table game licensee's bank account and deposited
     4     on the next banking day following the date of the
     5     transaction.
     6         (7)  The total amount of personal checks presented by the
     7     patron and accepted by any one table game licensee pursuant
     8     to this subsection that are outstanding at any time,
     9     including the current check being submitted, does not exceed
    10     $5,000.
    11         (8)  The table game licensee has a board-approved system
    12     of internal controls in place that will enable it to
    13     determine the amount of outstanding personal checks received
    14     from any patron pursuant to this subsection at any given
    15     point in time.
    16         (9)  The table game licensee maintains a record of each
    17     transaction in accordance with regulations promulgated by the
    18     board.
    19  Section 1603.  Prohibition on provision of credit.
    20     Upon written request to the board, a person may request that
    21  the board place that person's name on a list of persons whom the
    22  extension of credit by a table game licensee as provided in this
    23  chapter would be prohibited. A person desiring to have the
    24  person's name placed on the list shall submit the person's name,
    25  address and date of birth to the board. The person does not need
    26  to provide a reason for the request. It shall be the duty of the
    27  board to provide the "no credit list" authorized under this
    28  section to the credit department of each table game licensee.
    29  The board, the table game licensee and the credit department of
    30  a table game licensee may not divulge the names on the "no
    20070H2121B2339                 - 134 -    

     1  credit list" to any person or entity other than those provided
     2  for in this section. If a person wishes to have the person's
     3  name removed from the "no credit list," the person shall submit
     4  a written request for removal to the board. The board shall
     5  inform the credit departments of each table game licensee no
     6  later than seven business days after board receipt of a request
     7  to remove a name from the "no credit list." Each credit
     8  department of a table game licensee shall cause such person's
     9  name to be removed from its "no credit list" within three
    10  business days of receipt of the request for removal from the
    11  board.
    12  Section 1604.  Accounts, deposits and transactions.
    13     The following shall govern accounts established by patrons of
    14  table games:
    15         (1)  No table game licensee or any person licensed or
    16     qualified under this act and no person acting on behalf of or
    17     under any arrangement with a table game licensee or other
    18     person licensed or qualified under this act shall, in a
    19     single transaction during a gaming day, accept cash from a
    20     person offered for the purposes of establishing an account,
    21     when the amount offered totals $10,000 or more, unless the
    22     person presents proof of his identity or passport
    23     identification number, if the person is not a United States
    24     citizen.
    25         (2)  Multiple currency transactions shall be treated as a
    26     single transaction if the table game licensee or other person
    27     licensed or qualified under this act or a person acting on
    28     behalf of or under any arrangement with a table game licensee
    29     or other person licensed or qualified under this act has
    30     knowledge that the transactions are by or on behalf of one
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     1     person and result in either cash in or cash out totaling more
     2     than $10,000 during a gaming day.
     3  Section 1605.  Limitation on amount redeemed.
     4     (a)  Permissible transaction.--No table game licensee or any
     5  person licensed or qualified under this act, and no person
     6  acting on behalf of or under any arrangement with a table game
     7  licensee or other person licensed or qualified under this act
     8  shall, in a single transaction during a gaming day, redeem for
     9  cash or credit any chips or markers in an amount of $10,000 or
    10  more or exchange chips for cash in an amount of $10,000 or more,
    11  from any person, unless the person seeking to redeem the chips
    12  or markers presents proof of identity or passport identification
    13  number if the person seeking redemption is not a United States
    14  citizen.
    15     (b)  Multiple transactions.--Multiple currency transactions
    16  shall be treated as a single transaction if the table game
    17  licensee or any person licensed or qualified under this act or a
    18  person acting on behalf of or under any arrangement with a table
    19  game licensee or other person licensed or qualified under this
    20  act has knowledge that the transactions are by or on behalf of
    21  one person and result in either cash in or cash out totaling
    22  more than $10,000 during a gaming day.
    23     (c)  Reports of transactions.--Each table game licensee or
    24  persons acting on behalf of or under any arrangement with a
    25  table game licensee or other persons licensed under this act who
    26  accept cash or redeem chips or markers totaling $10,000 or more
    27  in a gaming day for which identification is required pursuant to
    28  this section shall, at least once every 30 days, report the
    29  identities and passport numbers, if applicable, of the persons
    30  offering the cash, chips or markers to the bureau.
    20070H2121B2339                 - 136 -    

     1                             CHAPTER 17
     2                 SUPPLIER AND MANUFACTURER LICENSES
     3  Section 1701.  Supplier and manufacturer licenses.
     4     (a)  Authority of board to license.--The board may issue a
     5  supplier license to a person seeking to provide table game
     6  equipment, devices, apparatuses or supplies to a table game
     7  licensee within this Commonwealth and a manufacturer license to
     8  a person who is a manufacturer of table game equipment,
     9  apparatuses, devices or supplies for use in this Commonwealth. A
    10  person desiring to serve as either a supplier or manufacturer
    11  shall submit an application for a supplier or manufacturer
    12  license to the board with a nonrefundable application fee not to
    13  exceed $2,500.
    14     (b)  Eligibility and qualification for licensure.--The board
    15  shall use the licensure procedures, conditions and any other
    16  requirements established for persons applying for or holding a
    17  supplier or manufacturer license under 4 Pa.C.S. Pt. II
    18  (relating to gaming), when considering applications for a
    19  supplier or manufacturer license under this act. In addition to
    20  any criteria established by regulation for suppliers and
    21  manufacturers of table game equipment, devices, apparatuses and
    22  supplies under this act, the provisions of 4 Pa.C.S. §§ 1317
    23  (relating to supplier licenses), 1317.1 (relating to
    24  manufacturer licenses), 1319 (relating to alternative
    25  manufacturer licensing standards) and 1325 (relating to license
    26  or permit issuance) or any regulations promulgated pursuant to
    27  the provisions of 4 Pa.C.S. Pt. II shall apply to any applicant
    28  for or holder of a table game supplier or table game
    29  manufacturer license under this act.
    30     (c)  Responsibility of applicant.--It shall be the burden of
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     1  an applicant for a table game supplier license or for a table
     2  game manufacturer license, as the case may be, to establish by
     3  clear and convincing evidence the applicant's suitability as to
     4  integrity, moral character and reputation, personal and business
     5  probity, financial ability and experience, responsibility and
     6  other criteria considered appropriate by the board. Applicants
     7  for a supplier or manufacturer license and supplier or
     8  manufacturer licensees shall be under a continuing duty to
     9  provide information requested by the board and to cooperate in
    10  any investigation, inquiry or hearing conducted by the board.
    11  Section 1702.  Additional eligibility requirements.
    12     In addition to any criteria the board may use to disqualify a
    13  person seeking a supplier or manufacturer license under this
    14  section, a person shall not qualify for licensure as a supplier
    15  or manufacturer if any of the following circumstances exist:
    16         (1)  The applicant has been convicted of a felony under
    17     the laws of this Commonwealth, any other state, the United
    18     States or under the laws of any foreign jurisdiction within
    19     the preceding 15 years.
    20         (2)  The applicant has been convicted of a misdemeanor
    21     involving gambling, theft, fraud or dishonesty in this
    22     Commonwealth, or in any other state in the United States or
    23     under the laws of a foreign jurisdiction, that substantially
    24     corresponds to a misdemeanor in that state.
    25         (3)  The applicant has submitted an application for a
    26     license under this act that contains false or misleading
    27     information.
    28         (4)  The applicant is a member of the board.
    29         (5)  The applicant holds an elective office of a
    30     political subdivision of this Commonwealth, another state,
    20070H2121B2339                 - 138 -    

     1     the Federal Government or is a member of or employed by a
     2     gaming regulatory body of a political subdivision in this
     3     Commonwealth, another state, the Federal Government or is
     4     employed by a political subdivision of this Commonwealth.
     5         (6)  The applicant has an ownership interest in another
     6     entity holding a table game license issued under this act or
     7     a slot machine license issued under 4 Pa.C.S. Pt. II
     8     (relating to gaming).
     9         (7)  The board determines that the applicant lacks the
    10     requisite suitability as to integrity, moral character and
    11     reputation, personal and business probity, financial ability
    12     and experience and responsibility.
    13         (8)  The applicant fails to meet any other criteria
    14     considered appropriate by the board. The criteria considered
    15     appropriate by the board shall not be arbitrary, capricious
    16     or contradictory to the expressed provisions of this act.
    17  Section 1703.  Issuance of license.
    18     In determining whether to issue a supplier license or
    19  manufacturer license to an applicant, the board shall consider
    20  all of the following:
    21         (1)  The applicant's past and present compliance with
    22     casino gaming licensing requirements of any other
    23     jurisdiction, foreign or domestic, that pertain to casino
    24     gaming and related activities.
    25         (2)  The integrity, moral character and reputation,
    26     personal and business probity, financial ability and
    27     experience and responsibility of the applicant or an
    28     affiliate of the applicant.
    29         (3)  Whether the applicant has been indicted, charged,
    30     arrested, convicted, pleaded guilty or nolo contendere,
    20070H2121B2339                 - 139 -    

     1     forfeited bail concerning or had expunged any criminal
     2     offense enumerated in section 602(b) under the laws of this
     3     Commonwealth or of any other jurisdiction foreign or
     4     domestic, either felony or misdemeanor, not including traffic
     5     violations, regardless of whether the offense has been
     6     expunged, pardoned or reversed on appeal or otherwise.
     7         (4)  Whether the applicant has filed, or had filed
     8     against it, a proceeding for bankruptcy or has ever been
     9     involved in any formal process to adjust, defer, suspend or
    10     otherwise work out the payment of any debt within ten
    11     calendar years before the effective date of this section.
    12         (5)  Whether the applicant has been served with a
    13     complaint or other notice filed with any public body
    14     regarding a payment of any tax required under Federal, State
    15     or local law that has been delinquent for one or more years.
    16         (6)  Whether the applicant has a history of noncompliance
    17     with the casino licensing requirements of any jurisdiction,
    18     foreign or domestic.
    19         (7)  Whether the applicant has a history of noncompliance
    20     with any regulatory requirements in this Commonwealth or any
    21     other jurisdiction, foreign or domestic.
    22         (8)  Whether at the time of application the applicant is
    23     a defendant in litigation involving its business practices or
    24     business interest.
    25         (9)  Whether issuing a supplier license or manufacturer
    26     license to an applicant would undermine the public's
    27     confidence in this Commonwealth's gaming industry.
    28         (10)  Whether the applicant meets other standards for the
    29     issuance of a supplier license or manufacturer license that
    30     the board may promulgate by regulation. The regulations
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     1     promulgated under this section shall not be arbitrary,
     2     capricious or contradictory to the expressed provisions of
     3     this act.
     4         (11)  Whether the applicant applied for or holds a
     5     supplier license or manufacturer license issued by the board
     6     under 4 Pa.C.S. Pt. II (relating to gaming).
     7         (12)  Whether the applicant for a supplier license or
     8     manufacturer license has paid the license fee authorized to
     9     be collected by the board under this act.
    10  Section 1704.  Additional supplier license requirements.
    11     Any person that supplies equipment, apparatuses, devices,
    12  supplies or services to a table game licensee shall first obtain
    13  a supplier's license. A supplier shall provide the board with a
    14  list of all equipment, devices, apparatuses, services and
    15  supplies offered for sale or lease to each table game licensee
    16  licensed under this act.
    17  Section 1705.  Records.
    18     Notwithstanding any other provision of law to the contrary,
    19  each person licensed as a licensed supplier or licensed
    20  manufacturer under this act shall keep books and records of
    21  their business activities with a table game licensee, including
    22  the furnishing of equipment, apparatuses, devices, supplies and
    23  services to table game licensees separate and distinct from any
    24  other business, including slot machine operations, that the
    25  licensed supplier or licensed manufacturer, as the case may be,
    26  might operate. A licensed supplier or licensed manufacturer
    27  shall file a quarterly report with the board listing all sales,
    28  leases and services entered into, made or provided in this
    29  Commonwealth to a table game licensee. A licensed supplier or
    30  licensed manufacturer shall permanently affix, when feasible,
    20070H2121B2339                 - 141 -    

     1  its name to all its equipment, apparatuses, devices and supplies
     2  for table game operations. Any supplier's or manufacturer's
     3  equipment, apparatuses, devices or supplies that are used by any
     4  person in an unauthorized gambling operation shall be forfeited
     5  to the Commonwealth.
     6  Section 1706.  Inspections.
     7     All applicants for a supplier or manufacturer license and
     8  such licensees shall consent to inspection, searches and
     9  seizures in accordance with this act and to the disclosure to
    10  the board and its agents of confidential records, including tax
    11  records, held by any Federal, State or local agency, credit
    12  bureau or financial institution and to provide handwriting
    13  exemplars, photographs, fingerprints and information as may be
    14  authorized in this act and any regulations promulgated pursuant
    15  to this act. Failure to provide information requested by the
    16  board to assist in any investigation, inquiry or hearing of the
    17  board or the bureau or failure to comply with any provision of
    18  this act or regulations promulgated by the board under this act
    19  may result in denial, suspension or, upon reasonable notice,
    20  revocation of a table game license.
    21                             CHAPTER 18
    22                 JUNKETS AND COMPLIMENTARY SERVICES
    23  Section 1801.  Junkets.
    24     (a)  Prohibition.--No person shall act as a junket
    25  representative or junket enterprise and no junket shall be
    26  organized or permitted to operate in this Commonwealth except in
    27  accordance with this chapter.
    28     (b)  Junket representative qualification.--A junket
    29  representative employed by a table game licensee, an applicant
    30  for a table game license or an affiliate of a table game
    20070H2121B2339                 - 142 -    

     1  licensee shall obtain a table game employee occupation permit in
     2  accordance with the requirements of this act, except that the
     3  junket representative need not be a resident of this
     4  Commonwealth. Any person who holds a current and valid table
     5  game employee occupation permit may act as a junket
     6  representative while employed by a table game licensee or an
     7  affiliate of a table game licensee. Junket representatives that
     8  are not employed by a table game licensee or an applicant for a
     9  table game license or by a junket enterprise shall be subject to
    10  the requirements of section 1002 and Chapter 20, unless
    11  otherwise directed by the board. No table game licensee or
    12  applicant for a table game license may employ or otherwise
    13  engage a junket representative who is not licensed as a junket
    14  representative in accordance with the requirements of this
    15  chapter.
    16     (c)  Junket enterprise qualification.--Junket enterprises
    17  that are engaged in activities governed by this section shall be
    18  subject to the provisions section 1002 and Chapter 20, with
    19  regard to those activities, unless otherwise directed by the
    20  board. The owners, management and supervisory employees and
    21  other principal employees of a junket enterprise as the board
    22  may require shall qualify under the standards, except for
    23  residency, established for the qualification and licensure of
    24  table game key employees under Chapter 7.
    25     (d)  Service of process.--Prior to the issuance of a table
    26  game occupation permit for a person to serve as a junket
    27  representative, a table game key employee license to a person
    28  associated with a junket enterprise or a table game service
    29  industry license to engage in the business of a junket
    30  enterprise, the applicant for the permit or license shall submit
    20070H2121B2339                 - 143 -    

     1  to the jurisdiction of the Commonwealth of Pennsylvania and
     2  shall demonstrate to the satisfaction of the board that the
     3  applicant is amenable to service of process within this
     4  Commonwealth. Failure to establish or maintain compliance with
     5  the requirements of this subsection shall constitute sufficient
     6  cause for denial, suspension or revocation of the person's table
     7  game employee occupation permit, the person's key employee
     8  license or the person's table game service industry license.
     9  Section 1802.  Temporary occupation permit.
    10     (a)  Petition by table game licensee.--Upon petition by the
    11  holder of a table game license, a junket representative applying
    12  for a table game employee occupation permit may be issued a
    13  temporary occupation permit upon a finding by the board of all
    14  of the following:
    15         (1)  The applicant for the occupation permit as a junket
    16     representative is employed by the table game licensee.
    17         (2)  The applicant for the occupation permit has filed a
    18     completed application, including a nonrefundable application
    19     fee and any other fee as required by regulation of the board,
    20     with the board.
    21         (3)  The bureau certifies to the board that the completed
    22     application for the occupation permit as a junket
    23     representative has been in the possession of the bureau for
    24     at least 30 days. The board, at its discretion, may consider
    25     an application that has been in the possession of the bureau
    26     for less than 30 days.
    27     (b)  Authority to suspend, limit or condition temporary
    28  occupation permit.--In addition to any other authority granted
    29  to the board under this act, the board shall have the authority,
    30  upon notification from the bureau or the Pennsylvania State
    20070H2121B2339                 - 144 -    

     1  Police that either is in possession of information that raises
     2  reasonable possibility that a junket representative does not
     3  qualify for an occupation permit, to immediately suspend, limit
     4  or condition any temporary occupation permit, pending a hearing
     5  on the qualifications of the junket representative in accordance
     6  with the provisions of this act and regulations of the board.
     7     (c)  Duration of temporary permit.--Unless otherwise
     8  terminated by the board, a temporary table game employee
     9  occupation permit issued pursuant to this section shall expire
    10  12 months from the date of issuance, and shall be renewable by
    11  the board, in the absence of an objection by the bureau or the
    12  Pennsylvania State Police, for one additional six-month period.
    13  Section 1803.  Agreements.
    14     Any agreement entered into between a table game licensee and
    15  a junket representative or between a table game licensee and a
    16  junket enterprise shall include a provision for the termination
    17  of the agreement without liability on the part of the table game
    18  licensee, if the board orders the termination upon the
    19  suspension, limitation, conditioning, denial or revocation of
    20  the occupation permit of the junket representative or the
    21  license of the junket enterprise. Failure to expressly include
    22  this condition in the agreement shall not constitute a defense
    23  in any action brought to terminate the agreement.
    24  Section 1804.  Responsibility of licensee for conduct of junket.
    25     A table game licensee shall be responsible for the conduct of
    26  any junket representative or junket enterprise associated with
    27  it and for the terms and conditions of any junket engaged in on
    28  its premises, regardless of the fact that the junket may involve
    29  persons not employed by the licensee.
    30  Section 1805.  Violation of terms of junket.
    20070H2121B2339                 - 145 -    

     1     A table game licensee shall be responsible for any violation
     2  or deviation from the terms of a junket. Notwithstanding any
     3  other provision of this act, the board may, after hearing, order
     4  restitution to junket participants, assess penalties for
     5  violations or deviations from the terms of the junket, prohibit
     6  future junkets by a table game licensee, junket enterprises or
     7  junket representatives and order further relief as it may deem
     8  appropriate.
     9  Section 1806.  Records of junkets.
    10     The board by regulation shall prescribe methods, procedures
    11  and forms for the delivery and retention of information
    12  concerning the conduct of junkets by table game licensees. Each
    13  table game licensee, in accordance with regulations of the
    14  board, shall:
    15         (1)  Maintain on file a report describing the operation
    16     of any junket engaged in or on its premises.
    17         (2)  Submit to the board and the bureau a list of all of
    18     its employees who act as junket representatives, whether on a
    19     full-time, part-time, temporary or permanent basis.
    20         (3)  Maintain records of all agreements entered into with
    21     a junket enterprise or junket representative for no less than
    22     five years.
    23  Section 1807.  Report of junket participants.
    24     Each table game licensee, junket representative or junket
    25  enterprise, in accordance with the regulations of the board,
    26  shall file a report with the bureau with respect to each list of
    27  junket patrons or potential junket patrons purchased directly or
    28  indirectly by the table game licensee, junket representative or
    29  junket enterprise. The report shall include, but not be limited
    30  to, information on the source of the list and zip codes of
    20070H2121B2339                 - 146 -    

     1  patrons or potential patrons named on any list purchased
     2  directly or indirectly by the table game licensee, junket
     3  representative or junket enterprise. Nothing in this section
     4  shall be construed to require the listing of any personal
     5  identifying information for patrons of any junket.
     6  Section 1808.  Junket arrangements; exemption determination.
     7     The board shall have the authority to determine, either by
     8  regulation or upon petition by the holder of the table game
     9  license, whether an arrangement otherwise included in the
    10  definition of "junket" under section 103 shall be required to
    11  comply with any or all of the requirements of this chapter. The
    12  board shall seek the opinion of the bureau prior to granting any
    13  exemption under this chapter. In granting an exemption, the
    14  board shall consider the nature, volume and significance of the
    15  particular type of arrangement, whether the exemption would be
    16  consistent with the policies and purposes of this act and any
    17  other factor it may deem necessary. The board may condition,
    18  limit or restrict any exemption as the board may deem
    19  appropriate.
    20  Section 1809.  Prohibitions relating to junkets.
    21     No junket enterprise or junket representative or person
    22  acting as a junket representative shall:
    23         (1)  Engage in efforts to collect upon checks that have
    24     been returned by banks or other financial institutions
    25     without full and final payment.
    26         (2)  Exercise approval authority with regard to the
    27     authorization or issuance of credit pursuant to Chapter 16.
    28         (3)  Act on behalf of or under any arrangement with a
    29     table game licensee or patron with regard to the redemption,
    30     consolidation or substitution of the patron's check awaiting
    20070H2121B2339                 - 147 -    

     1     deposit pursuant to Chapter 16.
     2         (4)  Individually receive or retain any fee from a table
     3     game patron for the privilege of participating in a junket.
     4         (5)  Pay for any services, including transportation, or
     5     other items or things of value provided to, or for the
     6     benefit of, any patron participating in a junket except as
     7     provided in this act.
     8  Section 1810.  Complimentary services.
     9     (a)  Restrictions on complimentary services.--No table game
    10  licensee shall offer or provide any complimentary services,
    11  gifts, cash or other things or items of value to any person
    12  unless:
    13         (1)  The complimentary service consists of room, food,
    14     beverage or entertainment expenses provided directly to the
    15     patron and the patron's guests by the table game licensee or
    16     indirectly to the patron and the patron's guests on behalf of
    17     a table game licensee by a third party.
    18         (2)  The complimentary service consists of documented
    19     transportation expenses provided directly to the patron and
    20     the patron's guests by the table game licensee or indirectly
    21     to the patron and the patron's guests on behalf of a licensee
    22     by a third party as long as the table game licensee complies
    23     with regulations promulgated by the board to ensure that
    24     documented transportation expenses of a patron and the
    25     patron's guests are paid for or reimbursed only once.
    26         (3)  The complimentary service consists of coins, tokens,
    27     cash or other complimentary items or services provided
    28     through a bus coupon or other complimentary distribution
    29     programs that, notwithstanding the requirements of Chapter
    30     15, shall be filed with the board upon the implementation of
    20070H2121B2339                 - 148 -    

     1     the program or maintained pursuant to board regulation.
     2     (b)  Allowable complimentary service.--Notwithstanding
     3  subsection (a), a table game licensee may offer and provide
     4  complimentary cash or noncash gifts that are not otherwise
     5  included under subsection (a) to any person, provided that
     6  complimentary cash or noncash gifts in excess of $2,000 per trip
     7  or a greater amount are supported by documentation setting forth
     8  the reason the gift was given to the patron or the patron's
     9  guests, including, where applicable, a patron's player rating.
    10  The documentation supporting complimentary cash or noncash gifts
    11  of $2,000 or more per trip shall be maintained by the table game
    12  licensee. For the purpose of this subsection, all gifts
    13  presented to a patron and the patron's guests directly by a
    14  table game licensee or indirectly on behalf of a table game
    15  licensee by a third party within any five-day period shall be
    16  considered to have been made during a single trip.
    17     (c)  Complimentary service account required.--Each table game
    18  licensee shall maintain a regulated complimentary service
    19  account for complimentary services allowed under this section.
    20  The table game licensee shall submit a quarterly report of
    21  account activities and all complimentary services offered or
    22  engaged in by the table game licensee during the immediately
    23  preceding quarter. The report shall:
    24         (1)  Identify the regulated complimentary services.
    25         (2)  Provide the costs of the complimentary services.
    26         (3)  Indicate the number of persons by category of
    27     service who received the complimentary services.
    28         (4)  Provide any other information the board may require.
    29  Section 1811.  Prohibition on provision of complimentary
    30                 services.
    20070H2121B2339                 - 149 -    

     1     (a)  General rule.--No applicant for a table game license or
     2  a table game licensee shall provide, directly or indirectly, a
     3  complimentary service or discount to any person, that is other
     4  than the complimentary service or discount provided or offered
     5  to members of the general public in like circumstances.
     6     (b)  Definition.--As used in subsection (a), the term
     7  "person" means any executive-level public employee or public
     8  official as those terms are defined in section 2701.
     9                             CHAPTER 19
    10                       PROFESSIONAL SERVICES
    11  Section 1901.  Definitions.
    12     The following words and phrases when used in this chapter
    13  shall have the meanings given to them in this section unless the
    14  context clearly indicates otherwise:
    15     "Professional services."  Those services rendered to a table
    16  game licensee in this Commonwealth, including, but not limited
    17  to:
    18         (1)  Legal services.
    19         (2)  Advertising or public relations services.
    20         (3)  Engineering services.
    21         (4)  Architectural, landscaping or surveying services.
    22         (5)  Accounting, auditing or actuarial services.
    23         (6)  Security consultant services.
    24         (7)  Computer and information technology services, except
    25     telephone service.
    26  Section 1902.  Reporting of professional services.
    27     (a)  Quarterly reports required.--Each holder of a table game
    28  license under this act shall submit a quarterly report to the
    29  board that names each individual, corporation, firm,
    30  partnership, association or other person or entity that
    20070H2121B2339                 - 150 -    

     1  furnishes professional services to the licensee. The report
     2  shall be a public record governed by the act of June 21, 1957
     3  (P.L.390, No. 212), referred to as the Right-to-Know Law, and
     4  shall be forwarded to the board on a quarterly basis by
     5  certified mail or electronic mail no later than 20 days after
     6  the end of each quarter, except that legal services shall be
     7  reported in accordance with any rules established for the
     8  reporting of legal services that have been established, or that
     9  may be established, by the Supreme Court of Pennsylvania.
    10     (b)  Content of report.--The report shall contain the name,
    11  address and any other information the board, through regulation,
    12  may require of each individual, person, corporation, firm,
    13  partnership, association or other entity that furnishes
    14  professional services to the table game licensee during the
    15  reporting quarter. The table game licensee shall not be required
    16  to report the amount of compensation paid to an individual,
    17  person or entity in exchange for furnishing professional
    18  services to the table game licensee.
    19     (c)  Sanctions.--The board may impose sanctions as provided
    20  in this act on any table game licensee who fails to submit the
    21  professional services report to the board in accordance with
    22  this chapter.
    23                             CHAPTER 20
    24                  AGREEMENTS, LEASES AND CONTRACTS
    25  Section 2001.  Payments under agreement, lease or contract.
    26     (a)  Requirement.--Unless otherwise provided in this section,
    27  no agreement shall be lawful that provides for the payment,
    28  however defined, of any direct or indirect interest, percentage
    29  or share of any money or property wagered at a licensed table
    30  game facility, any money or property derived from table game
    20070H2121B2339                 - 151 -    

     1  operations or any revenues, profits or earnings of a licensed
     2  table game facility, the following shall apply:
     3         (1)  Agreements that provide only for the payment of a
     4     fixed sum that is in no way affected by the amount of any of
     5     such money, property, revenues, profits or earnings of a
     6     licensed table game facility shall not be subject to the
     7     provisions of this section, and receipts, rentals or charges
     8     for real property, personal property or services shall not
     9     lose their character as payments of a fixed sum because of
    10     contract, lease or license provisions for adjustments in
    11     charges, rentals or fees on account of changes in taxes or
    12     assessments, cost-of-living index escalations, expansions or
    13     improvement of facilities or changes in services supplied.
    14         (2)  Agreements between a table game licensee and a
    15     junket enterprise or junket representative licensed,
    16     permitted or qualified in accordance with the applicable
    17     provisions of this act that provide for the compensation of
    18     the junket enterprise or junket representative by the table
    19     game licensee based upon the actual table game activities of
    20     a patron procured or referred by the junket enterprise or
    21     junket representative shall be lawful if filed with the board
    22     prior to the conduct of any junket that is governed by the
    23     agreement.
    24         (3)  Agreements between a table game licensee and its
    25     employees that provide for table game employee and table game
    26     key employee profit sharing shall be lawful if the agreement
    27     is in writing and filed with the board prior to the effective
    28     date of the agreement. The agreement may be reviewed by the
    29     board under relevant provisions of this act.
    30         (4)  Agreements to lease a licensed table game facility
    20070H2121B2339                 - 152 -    

     1     or the land thereunder and agreements for the complete
     2     management of table game operations in a licensed table game
     3     facility shall not be subject to the provisions of this
     4     section but shall be subject to the applicable provisions of
     5     Chapter 5.
     6         (5)  Agreements that provide for percentage charges
     7     between a table game licensee and a holding company or
     8     intermediary company of the table game licensee shall be in
     9     writing and filed with the board but shall not be subject to
    10     the provisions of this section.
    11  Section 2002.  Maintenance of records.
    12     Each applicant for a table game license or table game
    13  licensee shall maintain, in accordance with regulations of the
    14  board, a record of each written or unwritten agreement regarding
    15  the realty, construction, maintenance or business of a proposed
    16  or existing table game facility. The requirement to maintain
    17  these records shall apply regardless of whether the applicant
    18  for a table game license or the table game licensee is a party
    19  to the agreement. The agreement may be reviewed by the board on
    20  the basis of reasonableness of its terms, including the terms of
    21  compensation, and of the qualifications of the owners, officers,
    22  employees and directors of any enterprise involved in the
    23  agreement; qualifications shall be reviewed according to the
    24  standards enumerated in Chapter 6. If the board disapproves the
    25  agreement or the owners, officers, employees or directors of any
    26  enterprises involved in the agreement, the board may terminate
    27  the agreement.
    28  Section 2003.  Termination of agreement by board.
    29     Every agreement required to be maintained and every related
    30  agreement, the performance of which is dependent upon the
    20070H2121B2339                 - 153 -    

     1  performance of an agreement, shall be deemed to include a
     2  provision stipulating that if the board determines that the
     3  agreement should be terminated pursuant to this section, the
     4  termination shall occur without liability on the part of an
     5  applicant for a table game license or a table game licensee or
     6  any qualified party to the agreement or any related agreement.
     7  Failure expressly to include the provision in the agreement
     8  shall not constitute a defense in any action brought to
     9  terminate the agreement or any related agreement. If the
    10  agreement is not maintained or presented to the board in
    11  accordance with the requirements of this section or in
    12  accordance with regulations promulgated by the board or the
    13  disapproved agreement is not terminated, the board may pursue
    14  any remedy or combination of remedies provided under this act.
    15  Section 2004.  Transfer of license.
    16     Nothing in this act shall be construed to permit the transfer
    17  of any table game license issued by the board in accordance with
    18  this act, any interest in any table game license or any
    19  certification of compliance or any commitment or reservation.
    20                             CHAPTER 21
    21                        CORPORATE LICENSEES
    22  Section 2101.  Disposition of securities.
    23     (a)  Disposition conditional.--The sale, assignment,
    24  transfer, pledge or other disposition of any security issued by
    25  a corporation that holds a table game license issued under this
    26  act is conditional and shall be ineffective if disapproved by
    27  the board.
    28     (b)  Requirement for certificate evidencing security.--Every
    29  security issued by a corporation that holds a table game license
    30  shall bear, on both sides of the certificate evidencing the
    20070H2121B2339                 - 154 -    

     1  security, a statement of the restrictions imposed by this
     2  chapter, except that in the case of a publicly traded
     3  corporation incorporated prior to the effective date of this
     4  act, a statement of restriction shall be necessary only insofar
     5  as certificates are issued by the corporation after the
     6  effective date of this act.
     7     (c)  Secretary of State.--The Secretary of State shall not
     8  accept for filing any articles of incorporation of any
     9  corporation that includes as a stated purpose the conduct of
    10  table games, or any amendment that adds the conduct of table
    11  games to articles of incorporation previously filed, unless the
    12  articles or amendments have been approved by the board and a
    13  copy of the document evidencing board approval accompanies the
    14  articles or amendments upon presentation for filing with the
    15  Secretary of State.
    16  Section 2102.  Action upon finding of disqualification.
    17     (a)  General rule.--If at any time the board finds that an
    18  individual owner or holder of any security of a corporate table
    19  game licensee or of a holding or intermediary company of the
    20  corporate licensee is not qualified under this act and, as a
    21  result, the corporate table game licensee is no longer qualified
    22  to continue as a table game licensee in this Commonwealth, the
    23  board shall, pursuant to the provisions of this act, take any
    24  necessary action to protect the public interest, including the
    25  suspension or revocation of the table game license of the
    26  corporation. If the holding or intermediary company is a
    27  publicly traded corporation and the board finds disqualified any
    28  holder of any security of that corporation who is required to be
    29  qualified under this act, the board shall not take any action
    30  against the table game licensee or the holding or intermediary
    20070H2121B2339                 - 155 -    

     1  company with respect to the continued ownership of the security
     2  interest by the disqualified holder if the board finds that:
     3         (1)  The holding or intermediary company has complied
     4     with the applicable provisions of this act.
     5         (2)  The holding or intermediary company has made a good
     6     faith effort, including the pursuit of all legal remedies, to
     7     comply with any order of the board requiring the divestiture
     8     of the security interest held by the disqualified holder.
     9         (3)  The disqualified holder does not have the ability to
    10     control the corporate table game licensee or any holding or
    11     intermediary company of the corporate table game licensee or
    12     to elect one or more members of the board of directors of the
    13     corporation or company that is the holder of a table game
    14     license, the board shall not take any action against such
    15     table game licensee or the holding or intermediary company
    16     with respect to the continued ownership of the security
    17     interest by the disqualified holder.
    18     (b)  Presumption.--For the purpose of this act, a security
    19  holder shall be presumed to have the ability to control a
    20  publicly traded corporation, or to elect one or more members of
    21  its board of directors, if such holder owns or beneficially
    22  holds 5% or more of the equity securities of such corporation,
    23  unless the presumption of control or ability to elect is
    24  rebutted by clear and convincing evidence.
    25  Section 2103.  Prohibition upon disqualification.
    26     Commencing on the date the board serves notice upon a
    27  corporation that holds a table game license of the determination
    28  of disqualification under section 2102, it shall be unlawful for
    29  the named individual:
    30         (1)  To receive any dividends or interest from any
    20070H2121B2339                 - 156 -    

     1     security.
     2         (2)  To exercise, directly or indirectly through any
     3     trustee or nominee, any right conferred by the securities.
     4         (3)  To receive any remuneration in any form from the
     5     corporate table game licensee for services rendered or
     6     otherwise provided to the corporate table game licensee.
     7  Section 2104.  Reports by public and nonpublicly traded
     8                 corporations.
     9     After a nonpublicly traded corporation is issued a table game
    10  license under this act, but prior to the issuance or transfer of
    11  any security to any person required to be but not yet issued a
    12  license or qualified in accordance with this act, the
    13  corporation shall file a report of its proposed action with the
    14  board, and shall request the approval of the board for the
    15  transaction. If the board denies the request, the corporation
    16  shall not issue or transfer the security. After a publicly
    17  traded corporation has been issued a table game license, the
    18  corporation shall file a report quarterly with the board that
    19  lists all owners and holders of any security issued by the
    20  corporate table game licensee.
    21  Section 2105.  Report of changes in corporation.
    22     Each corporation that is issued a table game license under
    23  this act shall file a report of any change of its corporate
    24  officers or members of its board of directors with the board. No
    25  officer or director shall be entitled to exercise any powers of
    26  the office to which he was so elected or appointed until
    27  qualified by the board in accordance with this act.
    28                             CHAPTER 22
    29                             EMPLOYMENT
    30  Section 2201.  Table game facility employment.
    20070H2121B2339                 - 157 -    

     1     (a)  Licensure or registration required.--A table game
     2  licensee shall not appoint or employ any person in a position
     3  that requires a table game key employee license, table game
     4  employee occupation permit or table game service employee
     5  registration unless the person possesses such current and valid
     6  license, permit or registration authorizing the appointment or
     7  employment.
     8     (b)  Action upon revocation.--It shall be the duty of each
     9  table game licensee, within 24 hours of receipt of written or
    10  electronically transferred notice of the revocation or
    11  expiration of an employee license, permit or registration, to
    12  terminate the appointment or employment or registration of any
    13  person whose license, permit or registration has expired or been
    14  revoked by the board. A table game licensee shall comply in all
    15  respects with any order of the board imposing limitations or
    16  restrictions upon the terms of employment, appointment or
    17  registration in the course of any investigation or hearing.
    18     (c)  Restriction on reemployment.--An applicant for or a
    19  holder of a table game key employee license, a table game
    20  employee occupation permit or a table game service registration
    21  whose application is denied or whose license, permit or
    22  registration is revoked, as the case may be, shall not, in
    23  addition to any restrictions imposed by regulations of the board
    24  on a reapplication for a license, permit or registration, be
    25  employed by or provide service to a table game licensee in a
    26  position that does not require a license or permit until five
    27  years have elapsed from the date of the denial or revocation.
    28  The board may authorize reemployment of a revoked employee
    29  license or permit upon good cause shown.
    30                             CHAPTER 23
    20070H2121B2339                 - 158 -    

     1                         TABLE GAME REVENUE
     2  Section 2301.  Accounts and deposits.
     3     (a)  Deposits into account.--Each person that is issued a
     4  license to operate a table game facility in this Commonwealth in
     5  accordance with this act shall, not later than two business days
     6  prior to the commencement of table game operations, deposit and
     7  maintain a sum of $2,000,000 in the special account established
     8  for each slot machine licensee pursuant to 4 Pa.C.S. § 1401(a)
     9  (relating to slot machine licensee deposits). The State
    10  Treasurer shall ensure that the deposits required to be made by
    11  each table game licensee and made pursuant to this subsection
    12  are segregated and separate from deposits made by a slot machine
    13  licensee pursuant to 4 Pa.C.S. § 1401(a). The moneys deposited
    14  in the special account shall guarantee the payment of funds to
    15  the Commonwealth that are payable pursuant to the provisions of
    16  this act.
    17     (b)  Weekly deposits.--Each table game licensee shall deposit
    18  funds into the special account established within the State
    19  Treasury in accordance with subsection (a) on a weekly basis
    20  equal to the amounts deducted by the department under section
    21  2302. The department shall notify each table game licensee of
    22  the amounts deducted. If at any time the amount held in the
    23  account attributable to a table game licensee is not sufficient
    24  to make the payments required under section 2302, the department
    25  shall notify the table game licensee and the licensee,
    26  immediately upon receipt of the notification, shall deposit
    27  necessary funds into the account as directed by the department.
    28     (c)  Return of moneys in account.--The moneys deposited into
    29  the special account shall not be returned to a table game
    30  licensee unless the table game licensee ceases to conduct table
    20070H2121B2339                 - 159 -    

     1  games operations in this Commonwealth and relinquishes all
     2  future rights to operate table games at the licensed table game
     3  facility in this Commonwealth. If all rights are relinquished,
     4  the balance of the money in the special account attributable to
     5  the table game licensee's operation of table games, minus any
     6  unpaid amounts that may be due and payable to the Commonwealth
     7  under this act, shall be returned to the table game licensee.
     8  Section 2302.  Gross table game revenue deductions.
     9     After determining the appropriate assessments for each table
    10  game licensee, the department shall determine costs, expenses or
    11  payments from each account established under section 2301. The
    12  following costs and expenses shall be transferred to the
    13  appropriate agency upon appropriation by the General Assembly:
    14         (1)  Administrative costs and expenses and any other
    15     costs incurred by the department for performing its duties
    16     under this act as based upon a budget submitted by the
    17     department to, and approved, by the board.
    18         (2)  The costs and expenses incurred by the board in
    19     carrying out its responsibilities under this act based upon a
    20     budget approved by resolution of the board.
    21         (3)  The sums necessary to repay any loan made from the
    22     General Fund to the board in connection with the performance
    23     of its duties and responsibilities under this act.
    24         (4)  Any costs and expenses to be incurred by the
    25     Pennsylvania State Police and the Office of Attorney General
    26     not otherwise reimbursed under this act in carrying out their
    27     respective responsibilities under this act as based upon a
    28     budget submitted by each agency to, and approved, by the
    29     board.
    30  Section 2303.  Table game tax.
    20070H2121B2339                 - 160 -    

     1     (a)  Imposition of tax.--A tax to be known as the table game
     2  tax is hereby imposed on each licensed table game entity. The
     3  department shall determine and each licensed table game entity
     4  shall pay a daily tax of 26% and a local share assessment of 2%
     5  of its daily gross table game revenue from table game operations
     6  at each licensed table game facility.
     7     (b)  Collection and transfer of tax.--The department shall
     8  collect the tax and local share assessment imposed under
     9  subsection (a) and shall transfer the State tax to the special
    10  fund established under 4 Pa.C.S § 1409 (relating to Property Tax
    11  Relief Fund) for the use and purposes of that fund. The local
    12  share assessment shall be deposited in the State Gaming Fund
    13  established under 4 Pa.C.S. § 1403 (relating to establishment of
    14  State Gaming Fund and net slot machine revenue distribution).
    15     (c)  Use of State tax and local share assessments.--The State
    16  tax imposed under subsection (a) and transferred to the Property
    17  Tax Relief Fund in accordance with subsection (b) shall only be
    18  used for the purpose of property tax and wage tax reduction as
    19  generally expressed by the General Assembly in the act of July
    20  5, 2004 (P.L.654, No.72), known as the Homeowner Tax Relief Act,
    21  or by any regulations that may be adopted and promulgated
    22  pursuant to that act or by any amendment to or revision of that
    23  act that may be made by the General Assembly subsequent to the
    24  effective date of this act or by any other law of the General
    25  Assembly subsequently enacted that specifically relates to the
    26  delivery of property tax and wage tax relief to residents of
    27  this Commonwealth and that is enacted by the General Assembly
    28  for the sole purpose of reducing property tax and wage tax. The
    29  local share assessment shall be distributed in accordance with
    30  subsection (d).
    20070H2121B2339                 - 161 -    

     1     (d)  Transfers and distributions.--The department shall:
     2         (1)  Transfer the tax and local share assessment imposed
     3     under subsection (a) in accordance with subsection (b).
     4         (2)  From the local share assessment established in
     5     subsection (a), make quarterly distributions among the
     6     counties hosting a table game facility in accordance with the
     7     following schedule:
     8             (i)  If the licensed table game facility is also a
     9         Category 1 licensed facility pursuant to 4 Pa.C.S. § 1302
    10         (relating to Category 1 slot machine license) that is
    11         located at a harness racetrack and the county, including
    12         a home rule county, in which the licensed facility is
    13         located, is:
    14                 (A)  A county of the first class:  2% of the
    15             gross table game revenue to the county hosting the
    16             licensed table game facility from each facility.
    17             Notwithstanding any other provision to the contrary,
    18             funds from licensed gaming entities located within a
    19             county of the first class shall not be distributed
    20             outside of a county of the first class.
    21                 (B)  A county of the second class:  2% of the
    22             gross table game revenue to the county hosting the
    23             licensed table game facility from each facility.
    24                 (C)  A county of the second class A:  1% of the
    25             gross table game revenue to the county hosting the
    26             licensed table game facility from each facility. An
    27             additional 1% of the gross table game revenue to the
    28             county hosting the licensed table game facility from
    29             each facility for the purpose of municipal grants
    30             within the county in which the licensee is located.
    20070H2121B2339                 - 162 -    

     1                 (D)  (I)  A county of the third class:  Except as
     2                 provided in subparagraph (ii), 2% of the gross
     3                 table game revenue from each licensed table game
     4                 facility shall be deposited into a restricted
     5                 account established in the Department of
     6                 Community and Economic Development to be used
     7                 exclusively for grants for health, safety and
     8                 economic development projects to municipalities
     9                 within the county where the table game facility
    10                 is located. Municipalities that are contiguous to
    11                 the municipality hosting the licensed table game
    12                 facility shall be given priority by the
    13                 Department of Community and Economic Development
    14                 in the award of grants.
    15                     (II)  If a licensed table game facility is
    16                 located in one of two counties of the third class
    17                 where a city of the third class is located in
    18                 both counties of the third class, the county in
    19                 which the licensed table game facility is located
    20                 shall receive 1.2% of the gross table game
    21                 revenue to be distributed as follows:  20% to the
    22                 host city, 30% to the host county and 50% to the
    23                 host county for the purpose of making municipal
    24                 grants within the county, with priority given to
    25                 municipalities contiguous to the host city. The
    26                 county of the third class, which includes a city
    27                 of the third class that is located in two
    28                 counties of the third class and is not the host
    29                 county for the licensed facility, shall receive
    30                 .8% of the gross table game revenue to be
    20070H2121B2339                 - 163 -    

     1                 distributed as follows:  60% to a nonhost city of
     2                 the third class located solely in the nonhost
     3                 county in which the host city of the third class
     4                 is also located or 60% to the nonhost city of the
     5                 third class located both in the host and nonhost
     6                 counties of the third class, 35% to the nonhost
     7                 county and 5% to the nonhost county for the
     8                 purpose of making municipal grants within the
     9                 county.
    10                 (E)  A county of the fourth class:  2% of the
    11             gross table game revenue from each licensed table
    12             game facility shall be deposited into a restricted
    13             account established in the Department of Community
    14             and Economic Development to be used exclusively for
    15             grants to the county, to economic development
    16             authorities or organizations within the county or
    17             redevelopment authorities within the county for
    18             grants for economic development projects, job
    19             training, community improvement projects, other
    20             projects in the public interest and reasonable
    21             administrative costs. Notwithstanding the provisions
    22             of the act of February 9, 1999 (P.L.1, No.1), known
    23             as the Capital Facilities Debt Enabling Act, grants
    24             made under this clause may be utilized as local
    25             matching funds for other grants or loans from the
    26             Commonwealth.
    27                 (F)  Counties of the fifth through eighth
    28             classes:  2% of the gross table game revenue from
    29             each licensed table game facility shall be deposited
    30             into a restricted account established in the
    20070H2121B2339                 - 164 -    

     1             Department of Community and Economic Development to
     2             be used exclusively for grants to the county.
     3                 (G)  Any county not specifically enumerated in
     4             clauses (A) through (F), 2% of the gross table game
     5             revenue to the county hosting the licensed table game
     6             facility from each facility.
     7             (ii)  If the licensed table game facility is also a
     8         Category 1 licensed facility pursuant to 4 Pa.C.S. § 1302
     9         and is located at a thoroughbred racetrack and the county
    10         in which the licensed facility is located is:
    11                 (A)  A county of the first class:  2% of the
    12             gross table game revenue to the county hosting the
    13             licensed table game facility from each facility.
    14             Notwithstanding any other provision to the contrary,
    15             funds from licensed gaming entities located within
    16             the county of the first class shall not be
    17             distributed outside of a county of the first class.
    18                 (B)  A county of the second class:  2% of the
    19             gross table game revenue to the county hosting the
    20             licensed table game facility from each licensed
    21             facility.
    22                 (C)  A county of the second class A:  1% of the
    23             gross table game revenue to the county hosting the
    24             licensed table game facility from each facility and
    25             an additional 1% of the gross table game revenue to
    26             the county hosting the licensed table game facility
    27             from each facility for the purpose of municipal
    28             grants within the county in which the licensee is
    29             located.
    30                 (D)  A county of the third class:  1% of the
    20070H2121B2339                 - 165 -    

     1             gross table game revenue to the county hosting the
     2             licensed table game facility from each licensed
     3             facility and an additional 1% of the gross table game
     4             revenue to the county hosting the licensed table game
     5             facility from each licensed table game facility for
     6             the purpose of municipal grants within the county in
     7             which the licensee is located.
     8                 (E)  A county of the fourth class:  2% of the
     9             gross table game revenue from each licensed table
    10             game facility shall be deposited into a restricted
    11             account established by the Department of Community
    12             and Economic Development to be used exclusively for
    13             grants to the county, to economic development
    14             authorities or organizations within the county or
    15             redevelopment authorities within the county for
    16             grants for economic development projects, community
    17             improvement projects, job training, other projects in
    18             the public interest and reasonable administrative
    19             costs. Notwithstanding the Capital Facilities Debt
    20             Enabling Act, grants made under this clause may be
    21             utilized as local matching funds for other grants or
    22             loans from the Commonwealth.
    23                 (F)  Counties of the fifth through eighth
    24             classes:  2% of the gross table game revenue from
    25             each licensed table game facility shall be deposited
    26             into a restricted account established in the
    27             Department of Community and Economic Development to
    28             be used exclusively for grants to the county.
    29                 (G)  Any county not specifically enumerated in
    30             clauses (A) through (F):  2% of the gross table game
    20070H2121B2339                 - 166 -    

     1             revenue to the county hosting the licensed table game
     2             facility from each licensed table game facility.
     3             (iii)  If the table game facility is also a Category
     4         2 licensed facility pursuant to 4 Pa.C.S. § 1304
     5         (relating to Category 2 slot machine license) and if the
     6         county in which the facility is located is:
     7                 (A)  A county of the first class:  2% of the
     8             gross table game revenue to the county hosting the
     9             licensed table game facility from each facility.
    10             Notwithstanding any other provision to the contrary,
    11             funds from licensed table game entities located
    12             within the county of the first class shall not be
    13             distributed outside of a county of the first class.
    14                 (B)  A county of the second class:  2% of the
    15             gross table game revenue to the county hosting the
    16             licensed table game facility from each facility.
    17                 (C)  A county of the second class A:  1% of the
    18             gross table game revenue to the county hosting the
    19             licensed table game facility from each facility. An
    20             additional 1% of the gross table game revenue to the
    21             county hosting the licensed table game facility from
    22             each facility for the purpose of municipal grants
    23             within the county in which the licensee is located.
    24                 (D)  A county of the third class:  1% of the
    25             gross table game revenue to the county hosting the
    26             licensed table game facility from each licensed
    27             facility. An additional 1% of the gross table game
    28             revenue to the county hosting the licensed table game
    29             facility from each facility for the purpose of
    30             municipal grants within the county in which the
    20070H2121B2339                 - 167 -    

     1             licensee is located.
     2                 (D.1)  If a licensed facility is located in one
     3             of two counties of the third class where a city of
     4             the third class is located in both counties of the
     5             third class, the county in which the licensed
     6             facility is located shall receive 1.2% of the gross
     7             table game revenue to be distributed as follows:  20%
     8             to the host city, 30% to the host county and 50% to
     9             the host county for the purpose of making municipal
    10             grants within the county, with priority given to
    11             municipalities contiguous to the host city. The
    12             county of the third class, which includes a city of
    13             the third class that is located in two counties of
    14             the third class and is not the host county for the
    15             licensed table game facility, shall receive .8% of
    16             the gross table game revenue to be distributed as
    17             follows:  60% to a nonhost city of the third class
    18             located solely in the nonhost county in which the
    19             host city of the third class is also located or 60%
    20             to the nonhost city of the third class located both
    21             in the host and nonhost counties of the third class;
    22             35% to the nonhost county and 5% to the nonhost
    23             county for the purpose of making municipal grants
    24             within the county.
    25                 (E)  A county of the fourth class:  2% of the
    26             gross table game revenue from each licensed table
    27             game facility shall be deposited into a restricted
    28             account established in the Department of Community
    29             and Economic Development to be used exclusively for
    30             grants to the county, to economic development
    20070H2121B2339                 - 168 -    

     1             authorities or organizations within the county or
     2             redevelopment authorities within the county for
     3             grants for economic development projects, community
     4             improvement projects, job training, other projects in
     5             the public interest and reasonable administrative
     6             costs. Notwithstanding the Capital Facilities Debt
     7             Enabling Act, grants made under this clause may be
     8             utilized as local matching funds for other grants or
     9             loans from the Commonwealth.
    10                 (F)  Counties of the fifth class:  2% of the
    11             gross table game revenue from each licensed table
    12             game facility shall be deposited and distributed as
    13             follows:
    14                     (I)  One percent shall be deposited into a
    15                 restricted receipts account in the Department of
    16                 Community and Economic Development to be used
    17                 exclusively for grants within the county for
    18                 economic development projects, community
    19                 improvement projects and other projects in the
    20                 public interest within the county. The amount
    21                 distributed under this subclause shall include
    22                 reasonable administrative costs.
    23                     (II)  One percent shall be deposited into a
    24                 restricted receipts account in the Department of
    25                 Community and Economic Development to be used
    26                 exclusively for grants within contiguous counties
    27                 for economic development projects, community
    28                 improvement projects and other projects in the
    29                 public interest within contiguous counties. The
    30                 amount distributed under this subclause shall
    20070H2121B2339                 - 169 -    

     1                 include reasonable administrative costs.
     2                 (G)  Any county not specifically enumerated in
     3             clauses (A) through (F):  1% of the gross table game
     4             revenue to the county hosting the licensed table game
     5             facility from each licensed table game facility.
     6             (iv)  If the licensed table game facility is also a
     7         Category 3 licensed facility pursuant to 4 Pa.C.S. § 1305
     8         (relating to Category 3 slot machine license), 1% of the
     9         gross table game revenue from each facility shall be
    10         deposited into a restricted account established in the
    11         Department of Community and Economic Development to be
    12         used exclusively for grants to the county, to economic
    13         development authorities or redevelopment authorities
    14         within the county for grants for economic development
    15         projects and community improvement projects.
    16             (v)  Unless otherwise specified, for the purposes of
    17         this paragraph, money designated for municipal grants
    18         within a county, other than a county of the first class
    19         in which a licensed table game facility is located shall
    20         be used to fund grants to the municipality in which the
    21         licensed table game facility is located, to the county in
    22         which the licensed table game facility is located and to
    23         the municipalities that are contiguous to the
    24         municipality in which the facility is located and that
    25         are located within the county in which the licensed table
    26         game facility is located. Grants shall be administered by
    27         the county through its economic development or
    28         redevelopment authority in which the licensed table game
    29         facility is located. Grants shall be used to fund the
    30         costs of human services, infrastructure improvements,
    20070H2121B2339                 - 170 -    

     1         facilities, emergency services, health and public safety
     2         expenses. If at the end of a fiscal year uncommitted
     3         funds exist, the county shall pay such uncommitted funds
     4         to the economic development or redevelopment authority of
     5         the county in which the licensed table game facility is
     6         located.
     7             (vi)  If the licensed table game facility is located
     8         in more than one county, the amount available shall be
     9         distributed on a ratio basis determined by the ratio of
    10         acreage located in each county to the total acreage of
    11         all counties occupied by the licensed facility.
    12             (vii)  The distributions provided in this paragraph
    13         shall be based upon county classifications in effect on
    14         the effective date of this section. Any reclassification
    15         of counties as a result of a Federal decennial census or
    16         of a State statute shall not apply to this subparagraph.
    17             (viii)  If any provision of this paragraph is found
    18         to be unenforceable for any reason, the distribution
    19         provided for in the unenforceable provision shall be made
    20         to the county in which the licensed table game facility
    21         is located for the purposes of grants to municipalities
    22         in that county, including municipal grants as specified
    23         in subparagraph (v).
    24             (ix)  Nothing in this paragraph shall prevent any of
    25         the counties which directly receive a distribution under
    26         this section from entering into intergovernmental
    27         cooperative agreements with other jurisdictions for the
    28         sharing of gross table game revenue.
    29         (3)  From the local share assessment established in
    30     subsection (b), make quarterly distributions among the
    20070H2121B2339                 - 171 -    

     1     municipalities, including home rule municipalities, hosting a
     2     licensed table game facility in accordance with the following
     3     schedule:
     4             (i)  To a city of the second class hosting a licensed
     5         table game facility or facilities that are not operated
     6         in a Category 3 licensed facility, 1% of the gross table
     7         game revenue or $5,000,000 annually, whichever is
     8         greater, shall be paid by each licensed table game entity
     9         operating a licensed table game facility in that city. In
    10         the event the revenues generated by the 1% do not meet
    11         the $5,000,000 minimum specified in this subparagraph,
    12         the department shall collect the remainder of the minimum
    13         amount of $5,000,000 from each licensed table game entity
    14         operating a licensed table game facility or facilities in
    15         the city and deposit that amount in the city treasury.
    16             (ii)  To a city of the second class A hosting a
    17         licensed table game facility or facilities that are not
    18         operated in a Category 3 licensed facility, 1% of the
    19         gross table game revenue or $5,000,000 annually,
    20         whichever is greater, shall be paid by each licensed
    21         table game entity operating a licensed table game
    22         facility located in that city, subject, however, to the
    23         budgetary limitation in this subparagraph. The amount
    24         allocated to the designated municipalities shall not
    25         exceed 50% of their total budget for fiscal year 2007-
    26         2008, adjusted for inflation in subsequent years by an
    27         amount not to exceed an annual cost-of-living adjustment
    28         calculated by applying the percentage change in the
    29         Consumer Price Index, immediately prior to the date the
    30         adjustment is due to take effect. Any remaining moneys
    20070H2121B2339                 - 172 -    

     1         shall be collected by the department from each licensed
     2         table game entity and distributed in accordance with
     3         paragraph (2) based upon the classification of the county
     4         where the licensed table game facility or facilities are
     5         located. In the event that the revenues generated by the
     6         1% do not meet the $5,000,000 minimum specified in this
     7         subparagraph, the department shall collect the remainder
     8         of the minimum amount of $5,000,000 from each licensed
     9         table game entity operating a licensed table game
    10         facility in the city, pay any balance due to the city and
    11         transfer any remaining balance in accordance with
    12         paragraph (2).
    13             (iii)  To a city of the third class hosting a
    14         licensed table game facility or facilities that are not a
    15         Category 3 licensed facility, 1% of the gross table game
    16         revenue or $5,000,000 annually, whichever is greater,
    17         shall be paid by each licensed table game entity
    18         operating a licensed table game facility located in that
    19         city, subject, however, to the budgetary limitation in
    20         this subparagraph. In the event that the city has
    21         executed a written agreement with the licensed table game
    22         entity prior to the effective date of this act, the
    23         amount paid pursuant to the written agreement to the city
    24         shall be applied and credited to the difference between
    25         1% of gross table game revenue and the $5,000,000 owed
    26         under this subparagraph, if the 1% of the gross table
    27         game is less than $5,000,000. If 1% of the gross table
    28         game revenue is greater than the $5,000,000 required to
    29         be paid under this subparagraph, the credit shall not
    30         apply. The amount of gross table game revenue required to
    20070H2121B2339                 - 173 -    

     1         be paid pursuant to the agreement shall be deemed to be
     2         gross terminal revenue for the purposes of this
     3         subparagraph. The amount allocated to the designated
     4         municipalities shall not exceed 50% of their total budget
     5         for fiscal year 2007-2008, adjusted for inflation in
     6         subsequent years by an amount not to exceed an annual
     7         cost-of-living adjustment calculated by applying the
     8         percentage change in the Consumer Price Index,
     9         immediately prior to the date the adjustment is due to
    10         take effect. Any remaining moneys shall be collected by
    11         the department from each licensed table game entity and
    12         distributed in accordance with paragraph (2) based upon
    13         the classification of the county where the licensed table
    14         game facility is located. In the event that the revenues
    15         generated by the 1% do not meet the $5,000,000 minimum
    16         specified in this subparagraph, the department shall
    17         collect the remainder of the minimum amount of $5,000,000
    18         from each licensed table game entity operating a licensed
    19         table game facility or facilities in the city, pay any
    20         balance due to the city of the third class and transfer
    21         any remainder in accordance with paragraph (2).
    22             (iii.1)  If a licensed table game facility is located
    23         in a city of the third class and the city is located in
    24         more than one county of the third class, 1% of the gross
    25         table game revenue or $5,000,000 annually, whichever is
    26         greater, shall be distributed as follows:  80% to the
    27         host city and 20% to the city of the third class located
    28         solely in the nonhost county in which the host city of
    29         the third class is also located. If a licensed table game
    30         facility is located in a city of the third class and that
    20070H2121B2339                 - 174 -    

     1         city is located solely in a host county of the third
     2         class in which a nonhost city of the third class is also
     3         located, 1% of gross table game revenues or $5,000,000
     4         annually, whichever is greater, shall be distributed as
     5         follows:  80% to the host city and 20% to a city of the
     6         third class located both in a nonhost county of the third
     7         class and in a host county of the third class and in a
     8         host county of the third class in which the host city of
     9         the third class is located.
    10             (iv)  To a township of the first class hosting a
    11         licensed table game facility or facilities that are not
    12         operated in a Category 3 licensed facility, 1% of the
    13         gross table game revenue or $5,000,000 annually,
    14         whichever is greater, shall be paid by each licensed
    15         table game entity operating a licensed table game
    16         facility or facilities located in the township, subject,
    17         however, to the budgetary limitation in this
    18         subparagraph. The amount allocated to the designated
    19         municipalities shall not exceed 50% of their total budget
    20         for fiscal year 2007-2008, adjusted for inflation in
    21         subsequent years by an amount not to exceed an annual
    22         cost-of-living adjustment calculated by applying the
    23         percentage change in the Consumer Price Index immediately
    24         prior to the date the adjustment is due to take effect.
    25         Any remaining money shall be collected by the department
    26         from each licensed table game entity and distributed in
    27         accordance with paragraph (2) based upon the
    28         classification of the county where the licensed table
    29         game facility or facilities are located. In the event
    30         that the revenues generated by the 1% do not meet the
    20070H2121B2339                 - 175 -    

     1         $5,000,000 minimum specified in this subparagraph, the
     2         department shall collect the remainder of the minimum
     3         amount of $5,000,000 from each licensed table game entity
     4         operating a licensed table game facility in the township,
     5         pay any balance due to the township and transfer any
     6         remainder in accordance with paragraph (2).
     7             (v)  To a township of the second class hosting a
     8         licensed table game facility or facilities that are not
     9         operated in a Category 3 licensed facility, 1% of the
    10         gross table game revenue or $5,000,000 annually,
    11         whichever is greater, shall be paid by each licensed
    12         table game entity operating a licensed table game
    13         facility or facilities in the township, subject, however,
    14         to the budgetary limitation in this subparagraph. The
    15         amount allocated to the designated municipalities shall
    16         not exceed 50% of their total budget for fiscal year
    17         2007-2008, adjusted for inflation in subsequent years by
    18         an amount not to exceed an annual cost-of-living
    19         adjustment calculated by applying the percentage change
    20         in the Consumer Price Index immediately prior to the date
    21         the adjustment is due to take effect. Any remaining money
    22         shall be collected by the department from each licensed
    23         table game entity and distributed in accordance with
    24         paragraph (2) based upon the classification of the county
    25         where the licensed table game facility or facilities are
    26         located. Where the licensed table game facility is other
    27         than a Category 3 facility and is located in more than
    28         one second class township, the county commissioners of
    29         the county of the third class in which the table game
    30         facility or facilities are located shall appoint an
    20070H2121B2339                 - 176 -    

     1         advisory committee for the purpose of advising the county
     2         as to the need for municipal grants for health, safety,
     3         transportation and other projects in the public interest
     4         to be comprised of two individuals from the host
     5         municipality, two from contiguous municipalities within
     6         the county of the third class and one from the host
     7         county. A county other than a county of the third class
     8         in which the licensed table game facility or facilities
     9         are located shall not be required to appoint an advisory
    10         committee and may use gross table game revenue received
    11         under this subparagraph for purposes other than municipal
    12         grants. In the event that the revenues generated by the
    13         1% do not meet the $5,000,000 minimum specified in this
    14         subparagraph, the department shall collect the remainder
    15         of the minimum amount of $5,000,000 from each licensed
    16         table game entity operating a licensed table game
    17         facility or facilities in the township, pay any balance
    18         due to the township and transfer any remainder in
    19         accordance with paragraph (2).
    20             (vi)  To a borough hosting a licensed table game
    21         facility or facilities that are not operated in a
    22         Category 3 licensed facility, 1% of the gross table game
    23         revenue or $5,000,000 annually, whichever is greater,
    24         shall be paid by each licensed table game entity
    25         operating a licensed facility or facilities in that
    26         borough, subject, however, to the budgetary limitation in
    27         this subparagraph. The amount allocated to the designated
    28         municipalities shall not exceed 50% of their total budget
    29         for fiscal year 2007-2008, adjusted for inflation in
    30         subsequent years by an amount not to exceed an annual
    20070H2121B2339                 - 177 -    

     1         cost-of-living adjustment calculated by applying the
     2         percentage change in the Consumer Price Index immediately
     3         prior to the date the adjustment is due to take effect.
     4         Any remaining money shall be collected by the department
     5         from each licensed table game entity and distributed in
     6         accordance with paragraph (2) based upon the
     7         classification of the county where the licensed table
     8         game facility or facilities are located. In the event
     9         that the revenues generated by the 1% do not meet the
    10         $5,000,000 minimum specified in this subparagraph, the
    11         department shall collect the remainder of the minimum
    12         amount of $5,000,000 from each licensed table game entity
    13         operating the licensed table game facility or facilities
    14         in the borough, pay any balance due to the borough and
    15         transfer any remainder in accordance with paragraph (2).
    16             (vii)  To an incorporated town hosting a licensed
    17         table game facility or facilities that are not operated
    18         in a Category 3 licensed facility, 1% of the gross table
    19         game revenue or $5,000,000 annually, whichever is
    20         greater, shall be paid by each licensed table game entity
    21         operating a licensed table game facility located in the
    22         town, subject, however, to the budgetary limitation in
    23         this subparagraph. The amount allocated to the designated
    24         municipalities shall not exceed 50% of their total budget
    25         for fiscal year 2007-2008, adjusted for inflation in
    26         subsequent years by an amount not to exceed an annual
    27         cost-of-living adjustment calculated by applying the
    28         percentage change in the Consumer Price Index immediately
    29         prior to the date the adjustment is due to take effect.
    30         Any remaining money shall be collected by the department
    20070H2121B2339                 - 178 -    

     1         from each licensed table game entity and distributed in
     2         accordance with paragraph (2) based upon the
     3         classification of the county where the licensed table
     4         game facility or facilities are located. In the event
     5         that the revenues generated by the 1% do not meet the
     6         $5,000,000 minimum specified in this subparagraph, the
     7         department shall collect the remainder of the minimum
     8         amount of $5,000,000 from each licensed table gaming
     9         entity operating a licensed table game facility or
    10         facilities in the incorporated town, pay any balance due
    11         to the town and transfer any remainder in accordance with
    12         paragraph (2).
    13             (viii)  To a municipality of any class hosting a
    14         Category 3 facility, 1% of the gross table game revenue
    15         from the Category 3 licensed table game facility located
    16         in the municipality, subject, however, to the budgetary
    17         limitation in this subparagraph. The amount allocated to
    18         the designated municipalities shall not exceed 50% of
    19         their total budget for fiscal year 2007-2008, adjusted
    20         for inflation in subsequent years by an amount not to
    21         exceed an annual cost-of-living adjustment calculated by
    22         applying the percentage change in the Consumer Price
    23         Index immediately prior to the date the adjustment is due
    24         to take effect. Any remaining money shall be collected by
    25         the department from each Category 3 licensed table game
    26         entity and distributed in accordance with paragraph (2)
    27         based upon classification of the county where the
    28         licensed Category 3 table game facility or facilities are
    29         located.
    30             (ix)  Any municipality not specifically enumerated in
    20070H2121B2339                 - 179 -    

     1         subparagraphs (i) through (viii), 1% of the gross table
     2         game revenue to the municipality hosting the licensed
     3         table game facility from each such licensed facility.
     4             (x)  If the licensed table game facility is located
     5         in more than one municipality, the amount available shall
     6         be distributed on a pro rata basis determined by the
     7         ratio of acreage located in each municipality to the
     8         total acreage of all municipalities occupied by the
     9         licensed table game facility.
    10             (xi)  If the licensed table game facility is located
    11         at a resort that is also an incorporated municipality,
    12         the municipality shall not be eligible to receive any
    13         distribution under this paragraph. The distribution it
    14         would have otherwise been entitled to under this
    15         paragraph shall instead be distributed in accordance with
    16         paragraph (2) based upon the county where the licensed
    17         table game facility is located.
    18             (xii)  The distributions provided in this paragraph
    19         shall be based upon municipal classifications in effect
    20         on the effective date of this section. For the purposes
    21         of this paragraph, any reclassification of municipalities
    22         as a result of a Federal decennial census or of a State
    23         statute shall not apply to this paragraph.
    24             (xiii)  If any provision of this paragraph is found
    25         to be unenforceable for any reason, the distribution
    26         provided for in the unenforceable provision shall be made
    27         to the municipality in which the licensed table game
    28         facility is located.
    29             (xiv)  Nothing in this paragraph shall prevent any of
    30         the above municipalities from entering into
    20070H2121B2339                 - 180 -    

     1         intergovernmental cooperative agreements with other
     2         jurisdictions for sharing of local share from gross table
     3         game revenue.
     4             (xv)  Notwithstanding any other law, agreement or
     5         provision of this act to the contrary, all table game
     6         revenue provided, directed or earmarked under this
     7         section to or for the benefit of a city of the second
     8         class in which an intergovernmental cooperation authority
     9         has been established and is in existence pursuant to the
    10         act of February 12, 2004 (P.L.73, No.11), known as the
    11         Intergovernmental Cooperation Authority Act for Cities of
    12         the Second Class, shall be directed to and under the
    13         exclusive control of such intergovernmental cooperation
    14         authority to be used:
    15                 (A)  To reduce the debt of the second class city.
    16                 (B)  To increase the level of funding of the
    17             municipal pension funds of the second class city.
    18                 (C)  For any other purposes as determined to be
    19             in the best interest of the city of the second class
    20             by the intergovernmental cooperation authority. Gross
    21             table game revenues shall not be directed to or under
    22             the control of such city of the second class or any
    23             coordinator appointed pursuant to the act of July 10,
    24             1987 (P.L.246, No.47), known as the Municipalities
    25             Financial Recovery Act, for a city of the second
    26             class.
    27     (e)  Consumer Price Index.--For purposes of subsection (d),
    28  any reference to the Consumer Price Index shall mean the
    29  Consumer Price Index for the Pennsylvania, New Jersey, Delaware
    30  and Maryland area for the most recent 12-month period for which
    20070H2121B2339                 - 181 -    

     1  figures have been officially reported by the United States
     2  Department of Labor, Bureau of Labor Statistics.
     3  Section 2304.  Distribution to Pennsylvania Race Horse
     4                 Development Fund.
     5     (a)  Distributions.--Each licensed table game entity shall
     6  pay a daily assessment of 6% of its daily gross table game
     7  revenue to the Pennsylvania Race Horse Development Fund
     8  established under 4 Pa.C.S. § 1405 (relating to Pennsylvania
     9  Racehorse Development Fund). The daily assessment required to be
    10  paid under this section shall be allocated as follows:
    11         (1)  Eighty percent of the daily assessment shall be
    12     deposited weekly in the interest-bearing purse account
    13     established under 4 Pa.C.S. § 1406(a)(1)(i) (relating to
    14     distributions from Pennsylvania Race Horse Development Fund).
    15         (2)  Twenty percent of the daily assessment shall be
    16     allocated to the horsemen's organization for programs for the
    17     benefit of horsemen of this Commonwealth as provided under 4
    18     Pa.C.S. § 1406(a)(1)(iii).
    19     (b)  Use of funds.--Funds deposited in the Pennsylvania Race
    20  Horse Development Fund under subsection (a) shall be distributed
    21  and used in accordance with the requirements of 4 Pa.C.S. §§
    22  1405 and 1406. In no case shall the funds distributed pursuant
    23  to this subsection be used for any purpose other than the
    24  purposes provided under 4 Pa.C.S. § 1406(a)(1)(i) and (iii) and
    25  recipients of such funds shall be subject to the same
    26  guidelines, eligibility requirements, audits, contract
    27  requirements and penalties provided in 4 Pa.C.S. § 1406.
    28                             CHAPTER 24
    29                   ADMINISTRATION AND ENFORCEMENT
    30  Section 2401.  Authority and responsibility of department.
    20070H2121B2339                 - 182 -    

     1     (a)  General duties.--The department shall have the authority
     2  to collect the taxes and the local share assessment imposed
     3  under this act and interest imposed pursuant to section 806 of
     4  the act of April 7, 1929 (P.L.343, No.176), known as the Fiscal
     5  Code. The department shall have the authority to prescribe the
     6  forms and the systems of accounting and recordkeeping that shall
     7  be deployed and, through its representatives, shall at all times
     8  have power of access to and examination and audit of any and all
     9  records relating to the table game tax and local share
    10  assessment imposed and collected under section 2303.
    11     (b)  Inspections.--The department shall have the authority,
    12  without notice, to inspect, examine, audit and impound all
    13  books, records, ledgers and documents pertaining to the
    14  financial affairs of a table game licensee's table game
    15  activities.
    16     (c)  Regulations.--In collaboration with the board, the
    17  department may promulgate regulations to carry out its duties
    18  under this section.
    19  Section 2402.  Powers and duties of bureau.
    20     The bureau shall have the following powers and duties:
    21         (1)  Investigate all applications for a license, permit
    22     or registration under this act promptly and in reasonable
    23     order as directed by the board.
    24         (2)  Provide the board with all information necessary for
    25     all action related to an application for a license, permit or
    26     registration under this act and for all proceedings involving
    27     administrative enforcement of this act.
    28         (3)  Investigate the qualifications of each applicant
    29     before any license, permit or registration is issued under
    30     this act.
    20070H2121B2339                 - 183 -    

     1         (4)  Investigate the circumstances surrounding any act or
     2     transaction for which board approval or qualification is
     3     required.
     4         (5)  Investigate administrative violations of this act
     5     and regulations promulgated under this act.
     6         (6)  Initiate administrative proceedings before the board
     7     for violations of any provisions of this act or regulations
     8     promulgated pursuant to this act as the board may request.
     9         (7)  Conduct continuing review of table game operations
    10     through on-site visits and other reasonable means to ensure
    11     compliance with this act and regulations of the board.
    12         (8)  Receive and take appropriate action on any referral
    13     from the board relating to any evidence of a violation of
    14     this act or regulations promulgated by the board.
    15         (9)  Conduct audits of table game operations at a time,
    16     under such circumstances, and to the extent the bureau
    17     determines, including audit reviews of accounting,
    18     administrative and financial records and management control
    19     systems, procedures and records utilized by a licensee.
    20         (10)  Conduct administrative inspections of the premises
    21     of a licensed table game facility to ensure compliance with
    22     this act and the regulations of the board and, in the course
    23     of such inspections, review and make copies of all documents
    24     and records that may be required through on-site observation
    25     and other reasonable means to ensure continual compliance
    26     with this act and regulations promulgated under this act.
    27         (11)  Refer all suspected criminal violations to the
    28     Pennsylvania State Police for investigation or the Office of
    29     Attorney General and cooperate fully in the investigation and
    30     prosecution of any criminal violation that may arise under
    20070H2121B2339                 - 184 -    

     1     this act.
     2         (12)  Request and receive information, materials and any
     3     other data for any licensee, permittee or registrant, or
     4     applicant for a license, permit or registration under this
     5     act.
     6         (13)  Inspect and examine all premises in which table
     7     games are conducted or table game devices, apparatuses,
     8     supplies or equipment is manufactured, sold, distributed,
     9     repaired or serviced, or in which any records of these
    10     activities are prepared or maintained.
    11         (14)  Report to the board recommendations that promote
    12     more efficient operations of the bureau.
    13  Section 2403.  Duties of Pennsylvania State Police.
    14     It shall be the duty of the Pennsylvania State Police to:
    15         (1)  Promptly investigate all applicants, licensees,
    16     permittees or registrants as may be directed by the board.
    17     The Pennsylvania State Police may contract with other law
    18     enforcement annuitants to assist in the conduct of
    19     investigations under this paragraph.
    20         (2)  Initiate proceedings for any criminal violations of
    21     this act or regulations promulgated under this act.
    22         (3)  Provide the board with all the information necessary
    23     for any action under this act for all proceedings involving
    24     criminal enforcement of this act or regulations promulgated
    25     under this act.
    26         (4)  When warranted for a suspected violation of this
    27     act, inspect all equipment, apparatuses, devices and supplies
    28     in, about, upon or around the premises where table games are
    29     conducted.
    30         (5)  When warranted for a suspected violation of this
    20070H2121B2339                 - 185 -    

     1     act, seize summarily and remove any equipment, apparatuses,
     2     devices or supplies from the premises where table games are
     3     conducted and impound the same for the purposes of
     4     examination and inspection.
     5         (6)  When warranted for a suspected violation of this
     6     act, inspect, examine and audit all books, records and
     7     documents pertaining to a table game licensee's operation.
     8         (7)  When warranted for a suspected violation of this
     9     act, seize, impound or assume physical control of any book,
    10     record, ledger, game, device, apparatus, equipment, cash box
    11     or drop box and its contents, counting room equipment or any
    12     other device used in the conduct of table games.
    13         (8)  When warranted for a suspected violation of this
    14     act, inspect the person and personal effects present in a
    15     table game facility of any holder of a license, permit or
    16     registration issued under this act while that person is
    17     present in the licensed facility.
    18         (9)  Enforce any criminal violations of this act.
    19         (10)  Fingerprint applicants for licenses, permits and
    20     registrations under this act.
    21         (11)  Exchange fingerprint data with and receive national
    22     criminal history record information from the Federal Bureau
    23     of Investigation or from a similar law enforcement agency of
    24     any foreign jurisdiction for use in the investigation of
    25     applicants for any license, permit or registration under this
    26     act. Nothing in this act shall be construed to prohibit the
    27     Pennsylvania State Police from entering into reciprocal
    28     agreements with other gaming jurisdictions, foreign or
    29     domestic, for the receipt and exchange of fingerprint data.
    30         (12)  Receive and take appropriate action on any referral
    20070H2121B2339                 - 186 -    

     1     or request from the board relating to criminal conduct or a
     2     suspected violation of this act.
     3         (13)  Require the production of any information, material
     4     or other data from any applicant, licensee, permittee or
     5     registrant.
     6  Section 2404.  Inspections.
     7     (a)  Authority to inspect.--The bureau and the Pennsylvania
     8  State Police and employees and agents of the bureau and
     9  Pennsylvania State Police shall have the authority, without
    10  notice and without warrant, to:
    11         (1)  Inspect and examine all premises where table games
    12     are conducted or where table game equipment, apparatuses,
    13     devices and supplies are manufactured, sold, distributed,
    14     serviced or repaired or where any records of these activities
    15     are prepared or maintained.
    16         (2)  Inspect all table game equipment, apparatuses,
    17     devices and supplies in, about or around such premises
    18     referenced in paragraph (1).
    19         (3)  Seize and remove from such premises referenced in
    20     paragraph (1), any table game equipment, apparatuses, devices
    21     and supplies for the purpose of examination and inspection.
    22         (4)  Inspect, examine and audit all books, records and
    23     documents pertaining to a table game licensee's table game
    24     operations and activities.
    25         (5)  Seize, impound or assume physical control of any
    26     book, record, ledger, game device, cash box and its contents,
    27     counting room or its equipment or lockbox and its contents.
    28         (6)  Make administrative inspections when appropriate to
    29     check for compliance by any applicant for a license,
    30     licensee, permittee, registrant, intermediary company,
    20070H2121B2339                 - 187 -    

     1     subsidiary or holding company with this act and regulations
     2     promulgated pursuant to this act and to investigate
     3     violations thereof.
     4     (b)  Warrantless searches.--Nothing in this chapter shall be
     5  construed to prohibit or limit warrantless inspections by the
     6  Pennsylvania State Police except in accordance with
     7  constitutional requirements or to prevent entries and
     8  administrative inspections, including seizure of property,
     9  without a warrant as follows:
    10         (1)  With the consent of the licensee, operator or agent
    11     in charge of the premises.
    12         (2)  In situations presenting imminent danger to public
    13     health or safety.
    14         (3)  In situations involving inspection of conveyances
    15     where there is reasonable cause to believe that the mobility
    16     of the conveyance makes it impractical to obtain a warrant or
    17     in any other exceptional or emergency circumstance where time
    18     or opportunity to apply for a warrant is lacking.
    19         (4)  In accordance with this act or regulations
    20     promulgated pursuant to this act.
    21         (5)  In any other situations where a warrant is not
    22     constitutionally required.
    23     (c)  Administrative warrants.--To effectuate the purposes of
    24  this act, the bureau and the Pennsylvania State Police may
    25  obtain administrative warrants for the inspection and seizure of
    26  property possessed, controlled, bailed or otherwise held by an
    27  applicant for a table game licensee, a licensee, permittee,
    28  registrant or an intermediary, subsidiary, affiliate or holding
    29  company.
    30     (d)  Information sharing.--With respect to the
    20070H2121B2339                 - 188 -    

     1  administration, supervision and enforcement of this act, the
     2  bureau, the Pennsylvania State police or the Office of Attorney
     3  General may obtain or provide pertinent information regarding
     4  applicants for a table game license, permit or registration from
     5  or to law enforcement agencies or casino or gaming authorities
     6  of the Commonwealth and other domestic and foreign
     7  jurisdictions, including the Federal Bureau of Investigation or
     8  similarly situated law enforcement agencies of foreign
     9  jurisdictions, and may transmit the information to these
    10  agencies electronically.
    11                             CHAPTER 25
    12                            PROHIBITIONS
    13  Section 2501.  Prohibitions.
    14     (a)  Prohibitions.--It shall be unlawful:
    15         (1)  To willfully fail to report, pay or truthfully
    16     account for and pay any fee or tax imposed under this act or
    17     willfully attempt in any manner to evade or defeat payment of
    18     any fee or tax imposed under this act.
    19         (2)  To permit table games to be conducted, operated,
    20     dealt or carried on in a licensed table game facility by a
    21     person other than a person licensed pursuant to this act.
    22         (3)  To carry on or expose for play any authorized table
    23     game after a license has expired and prior to the actual
    24     renewal of an expired license.
    25         (4)  To knowingly conduct, carry on, operate, deal or
    26     allow for the conducting, carrying on, operating or dealing
    27     of any cheating game, device or apparatus.
    28         (5)  To knowingly deal, conduct, carry on, operate or
    29     expose for play any game or games played with cards, dice or
    30     any device or apparatus, or any combination of games, devices
    20070H2121B2339                 - 189 -    

     1     or apparatuses that have in any manner been marked or
     2     tampered with or placed in a condition or operated in a
     3     manner the result of which tends to deceive the public or
     4     tends to alter the normal random selection of characteristics
     5     or the normal chance of the game that could determine or
     6     alter the result of the game.
     7         (6)  To knowingly use or possess any marked cards, loaded
     8     dice or plug or to tamper with any table game equipment,
     9     apparatus or device.
    10         (7)  To work in or be employed by a licensed table game
    11     facility without obtaining the required license, permit or
    12     registration.
    13         (8)  For a table game licensee to employ or continue to
    14     employ an individual not duly licensed, permitted or
    15     registered in accordance with this act.
    16         (9)  For an applicant or person or other entity licensed
    17     or permitted by or registered with the board to employ or
    18     offer to employ any person who is prohibited from accepting
    19     employment from a table game licensee or applicant for a
    20     table game license or a table game service industry licensee
    21     or applicant for a table game service industry license or any
    22     holding or intermediary company of the table game licensee or
    23     applicant for a table game license or of a table game service
    24     industry or applicant for a table game service industry
    25     license.
    26         (10)  To notify a person involved in a suspicious
    27     transaction that the suspicious transaction has been reported
    28     to the board or the bureau.
    29  Section 2502.  Reports of suspicious transactions.
    30     (a)  Reports required.--
    20070H2121B2339                 - 190 -    

     1         (1)  The holder of any table game license, permit or
     2     registration under this act or any person acting on behalf of
     3     the holder of a table game license, permit or registration
     4     shall file a report of any suspicious transaction with the
     5     bureau.
     6         (2)  For the purpose of this subsection, the term
     7     "suspicious transaction" shall mean the acceptance of cash or
     8     the redeeming of chips or markers, if the licensee, permittee
     9     or registrant or person knows or suspects that the amount of
    10     the transaction:
    11             (i)  Involves funds derived from illegal activities
    12         or is intended or conducted in order to conceal or
    13         disguise funds or assets derived from legal activities.
    14             (ii)  Is part of a plan to violate or evade any law
    15         or regulation or to avoid any transaction reporting
    16         requirement under the law or regulations of this
    17         Commonwealth or the United States, including a plan to
    18         structure a series of transactions to avoid any
    19         transaction reporting requirement under the laws or
    20         regulations of the Commonwealth or the United States.
    21             (iii)  Has no business or other apparent lawful
    22         purpose or is not the sort of transaction in which a
    23         person normally would be expected to engage and the
    24         licensee or person knows of no reasonable explanation for
    25         the transaction after examining the available facts,
    26         including the background and possible purpose of the
    27         transaction.
    28     (b)  Failure to report suspicious transactions.--A table game
    29  licensee, permittee or registrant or person acting on behalf of
    30  a licensee or a permittee or registrant under this act who
    20070H2121B2339                 - 191 -    

     1  knowingly fails to file a report of a suspicious transaction or
     2  who knowingly causes any other person having the responsibility
     3  to report a suspicious transaction to fail to file a report
     4  shall be subject to the sanctions set forth under this act.
     5     (c)  Records of suspicious transaction.--The bureau shall
     6  maintain a record of all reports of suspicious transactions for
     7  a period of five years. The bureau shall make the reports
     8  available to any Federal or State law enforcement agency upon
     9  written request and without the necessity of subpoena. The board
    10  shall promulgate regulations to effectuate the implementation of
    11  the reporting requirements of this subsection. The board may
    12  determine that compliance with applicable Federal reporting
    13  requirements, as may be adopted, revised or amended from time to
    14  time, satisfies the reporting requirements of this subsection.
    15     (d)  Immunity from civil liability.--Any person required to
    16  file a report of a suspicious transaction pursuant to subsection
    17  (a) who in good faith files the report shall not be liable in
    18  any civil action brought by any person for making the report,
    19  regardless of whether the transaction is later determined to be
    20  suspicious.
    21  Section 2503.  Specific offenses relating to table games and
    22                 penalties.
    23     (a)  Swindling and cheating.--
    24         (1)  A person commits the offense of swindling and
    25     cheating if the person purposely or knowingly by any trick or
    26     sleight of hand performance or by fraud or fraudulent scheme,
    27     cards, dice or device, for himself or for another, wins or
    28     attempts to win money or property or a representative of
    29     either or reduces a losing wager or attempts to reduce a
    30     losing wager in connection with a table game.
    20070H2121B2339                 - 192 -    

     1         (2)  Swindling and cheating as described in subsection
     2     (a)(1) constitutes a single offense; however, each episode,
     3     occurrence or transaction may be the subject of a separate
     4     prosecution and conviction. A charge of swindling and
     5     cheating may be supported by evidence that it was committed
     6     in a manner that would constitute swindling and cheating
     7     under this subsection, notwithstanding the specification of a
     8     different manner in the indictment or accusation, subject
     9     only to the power of the court to ensure a fair trial by
    10     granting a bill or particulars, discovery, continuance or
    11     other appropriate relief when the conduct of the defense
    12     would be prejudiced by a lack of fair notice or by surprise.
    13         (3)  Swindling and cheating constitutes a felony of the
    14     third degree regardless of the amount involved.
    15     (b)  Use of certain devices prohibited.--
    16         (1)  A person commits a misdemeanor of the third degree
    17     if, in playing an authorized table game, the person uses, or
    18     assists another in the use of a computerized, electronic,
    19     electrical or mechanical device that is designed, constructed
    20     or programmed specifically for use in obtaining an advantage
    21     at playing any authorized table game in a table game facility
    22     in this Commonwealth, unless the advantage obtained can be
    23     assessed as providing a monetary value or loss of $50,000 or
    24     greater, in which case the offense shall be a misdemeanor of
    25     the first degree.
    26         (2)  Any computerized, electronic, electrical or
    27     mechanical device used in violation of paragraph (1) shall be
    28     considered prima facie contraband and shall be subject to
    29     forfeiture.
    30     (c)  Publication of notice.--Each table game licensee shall
    20070H2121B2339                 - 193 -    

     1  conspicuously post, in the licensed table game facility, notices
     2  of the prohibition against swindling and cheating and the
     3  penalty set forth in this section. The notice shall be posted in
     4  a form and manner determined by the board.
     5     (d)  Unlawful use of bogus chips or gaming billets, marked
     6  cards, loaded dice or cheating devices.--
     7         (1)  It shall be unlawful for any person playing any
     8     authorized table game to:
     9             (i)  Knowingly use bogus or counterfeit chips or
    10         gaming billets, or knowingly substitute and use any cards
    11         or dice that have been marked, loaded or tampered with.
    12             (ii)  Knowingly use or possess any cheating device
    13         with the intent to cheat or defraud.
    14             (iii)  Knowingly possess or use while on the premises
    15         of any table game facility any key or device designed for
    16         the purpose of or suitable for opening or entering any
    17         drop box, except that an authorized employee or agent of
    18         a table game licensee or of the board may possess and use
    19         a key or device in the furtherance of the employee's or
    20         agent's employment.
    21         (2)  A person who violates this subsection commits a
    22     misdemeanor of the third degree.
    23     (e)  Aiding and abetting.--Any person who aids, abets,
    24  counsels, commands, induces, procures or causes another person
    25  to violate a provision of this act shall be punishable as a
    26  principal and subject to all sanctions and penalties, both civil
    27  and criminal, provided in this act.
    28     (f)  Possession by employees.--An authorized employee or
    29  agent of a table game licensee or an employee or agent of the
    30  board or bureau may possess and use a cheating or thieving
    20070H2121B2339                 - 194 -    

     1  device, counterfeit or altered chip, loaded dice, marked cards
     2  or other such implements, objects or devices only in performance
     3  of the duties of employment.
     4     (g)  Definition.--As used in this section, the term "cheating
     5  or thieving device" includes, but is not limited to, a device to
     6  facilitate the winning of any table game, including, but not
     7  limited to, any computerized, electronic, electrical, mechanical
     8  or magnetic device or implement.
     9  Section 2504.  Underage gambling and prohibition.
    10     (a)  Prohibition.--
    11         (1)  No individual under 21 years of age shall enter or
    12     wager in a table game facility except that an individual
    13     under 21 years of age may enter a table game facility by way
    14     of passage to another room and an individual 18 years of age
    15     or older who is licensed, permitted or registered under this
    16     act or 4 Pa.C.S. Pt. II (relating to gaming) may enter a
    17     table game facility in the regular course of the individual's
    18     licensed, permitted or registered employment activities. Any
    19     individual under 21 years of age who violates this subsection
    20     commits a summary offense and may, upon conviction:
    21             (i)  Be fined no less than $500 nor more than $1,000.
    22         In addition, the court shall suspend or postpone the
    23         issuance of the individual's license to operate a motor
    24         vehicle or learner's permit for six months.
    25             (ii)  If the individual at the time of imposition of
    26         a sentence pursuant to this subsection is less than 18
    27         years of age and does not hold a driver's license or
    28         junior driver's license, the individual shall not be
    29         eligible to apply for a driver's license or learner's
    30         permit for a period of six months from the day the
    20070H2121B2339                 - 195 -    

     1         sentence is imposed or for a period of six months after
     2         the individual reaches 18 years of age.
     3             (iii)  Upon the conviction of any individual under
     4         this section, the court shall forward a report to the
     5         Department of Transportation stating that the individual
     6         has been convicted of violating this section and
     7         indicating the first and last day of driver's license
     8         suspension, denial or postponement period imposed by the
     9         court pursuant to this subsection.
    10             (iv)  If an individual at the time of imposition of a
    11         sentence pursuant to this section has a valid driver's
    12         license or junior driver's license issued by this
    13         Commonwealth, the court shall immediately collect the
    14         driver's license or junior driver's license and forward
    15         it to the Department of Transportation with the report
    16         required under subparagraph (iii). If the driver's
    17         license or junior driver's license cannot be collected at
    18         the time the sentence is imposed, the court shall include
    19         in the report the complete name, address, date of birth,
    20         eye color and gender of the individual as well as the
    21         first and last day of the license suspension or
    22         postponement period imposed by the court.
    23             (v)  The court shall inform the individual orally and
    24         in writing that if the individual is convicted of
    25         operating a motor vehicle during the period of the
    26         driver's license or junior driver's license suspension or
    27         postponement under this section, the individual shall be
    28         subject to the penalties set forth in 75 Pa.C.S. § 1532
    29         (relating to suspension of operating privilege).
    30     (b)  Actions of licensee.--Any licensee or employee of a
    20070H2121B2339                 - 196 -    

     1  table game facility who allows an individual under 21 years of
     2  age to remain or wager in a table game facility commits a
     3  misdemeanor of the third degree. The following facts, if
     4  established by the licensee or employee of the licensee, may
     5  constitute a defense to a prosecution under this section:
     6         (1)  The underage individual falsely represented in
     7     writing that the individual was 21 or over 21 years of age.
     8         (2)  The appearance of the underage individual was such
     9     that an ordinary prudent person would believe the individual
    10     to be 21 or over 21 years of age.
    11         (3)  The admission was made in good faith, relying upon
    12     the written representation and appearance of the underage
    13     individual, and in the reasonable belief that the underage
    14     individual was actually at or over 21 years of age.
    15     (c)  Permitting underage wagering; penalty.--A person who
    16  knowingly allows or permits an individual who is under that
    17  person's lawful care, custody or control and who is under 21
    18  years of age to wager or attempt to wager in a licensed table
    19  game facility in violation of this subsection commits a
    20  misdemeanor of the third degree and, upon conviction, may be
    21  subject to the payment of a fine not exceeding $2,500 or to a
    22  term of imprisonment, or both.
    23  Section 2505.  Authority to detain.
    24     (a)  Authority to detain.--A table game licensee or the
    25  officers, employees or agents of a table game licensee may:
    26         (1)  Question any individual in the table game facility
    27     reasonably suspected of violating any provision of this act
    28     or any other activity declared unlawful pursuant to this act.
    29     No licensee or its officers, employees or agents shall be
    30     criminally or civilly liable by reason of any questioning or
    20070H2121B2339                 - 197 -    

     1     detention authorized under this section.
     2         (2)  Refuse to allow a person to continue to play table
     3     games or take the person into custody and detain the person
     4     in a reasonable manner for a reasonable period of time to
     5     notify law enforcement if the licensee or its officers,
     6     employees or agents have probable cause to believe that a
     7     person has violated section 2504. The licensee may notify the
     8     board of any detention. The refusal to permit a person to
     9     play table games or the taking into custody and detention
    10     shall not render the licensee or its officers, employees or
    11     agents criminally or civilly liable for false arrest, false
    12     imprisonment, slander or unlawful detention, unless the
    13     refusal or taking into custody or detention is unreasonable
    14     under all of the circumstances.
    15     (b)  Limitation on immunity.--No table game licensee or any
    16  officers, employees or agents of a table game licensee shall be
    17  entitled to immunity from civil or criminal liability provided
    18  under this section unless there is conspicuously displayed in
    19  the gaming area or areas of a table game facility a notice in
    20  bold face type similar to the following:
    21         WARNING: ANY TABLE GAME LICENSEE OR OFFICER, EMPLOYEE OR
    22         AGENT OF A TABLE GAME LICENSEE WHO HAS PROBABLE CAUSE TO
    23         BELIEVE THAT A PERSON IS VIOLATING ANY OF THE PROVISIONS
    24         OF THE TABLE GAME AUTHORIZATION AND CONTROL ACT MAY
    25         DETAIN THE PERSON IN THE ESTABLISHMENT FOR A REASONABLE
    26         PERIOD OF TIME FOR THE PURPOSE OF NOTIFYING APPROPRIATE
    27         LAW ENFORCEMENT AGENCIES.
    28  Section 2506.  Additional prohibitions and penalties.
    29     (a)  Criminal offenses.--
    30         (1)  The provisions of 18 Pa.C.S. § 4902 (relating to
    20070H2121B2339                 - 198 -    

     1     perjury), 4903 (relating to false swearing) or 4904 (relating
     2     to unsworn falsification to authorities) shall apply to any
     3     person providing information or making any statement, whether
     4     written or oral, to the board, the bureau, the department,
     5     the Pennsylvania State Police or the Office of Attorney
     6     General, as required by this act.
     7         (2)  It shall be unlawful for any licensed table game
     8     entity or any employee or key employee of such licensee or
     9     any other person to permit table games to be operated,
    10     transported, repaired or opened on the premises of a licensed
    11     table game facility by a person other than a person licensed,
    12     permitted or registered by the board pursuant to this act.
    13         (3)  It shall be unlawful for any licensed table game
    14     entity or other person to manufacture, supply or place table
    15     games into play or display table games on the premises of a
    16     licensed facility without the authority of the board.
    17         (4)  Except as provided for in this act, it shall be
    18     unlawful for a licensed table game entity or other person to
    19     manufacture, supply, operate, carry on or expose for play any
    20     table game after the person's table game license has expired
    21     and prior to the actual renewal of the license.
    22         (5)  It shall be unlawful for an individual on the
    23     premises of a licensed table game facility to knowingly use
    24     currency other than lawful coin or legal tender of the United
    25     States to play any authorized table game.
    26         (6)  It shall be unlawful for a table game licensee or an
    27     agent or employee of a table game licensee to possess any
    28     device, apparatus, equipment or supplies that the licensee,
    29     agent or employee knows has been manufactured, distributed,
    30     sold, leased, tampered with, repaired or serviced in
    20070H2121B2339                 - 199 -    

     1     violation of this act.
     2         (7)  It shall be unlawful for an individual to work or be
     3     employed in a position the duties of which would require
     4     licensing, permitting or registering under this act without
     5     first obtaining the requisite license, permit or registration
     6     as provided for in this act.
     7         (8)  It shall be unlawful for a licensed table gaming
     8     entity that is a licensed racing entity and that has had its
     9     racing license revoked or suspended by either the State Horse
    10     Racing Commission or the State Harness Racing Commission
    11     under the act of December 17, 1981 (P.L.435, No.135), known
    12     as the Race Horse Industry Reform Act, to continue to operate
    13     table games at the racetrack for which its racing license was
    14     issued unless the racing license is or will be subsequently
    15     reissued or reinstated within 60 days after its revocation or
    16     suspension or without approval of the board.
    17         (9)  It shall be unlawful for a table game licensee to
    18     employ or continue to employ in a position the duties of
    19     which require a license, permit or registration under this
    20     act:
    21             (i)  An individual not licensed, permitted or
    22         registered under this act.
    23             (ii)  An individual who is prohibited from accepting
    24         employment from a table game licensee.
    25         (10)  It shall be unlawful for any person under 18 years
    26     of age to be in any area where table games are operated.
    27     (b)  Criminal penalties and fines.--
    28         (1)  (i)  A person that violates subsection (a)(1)
    29         commits an offense to be graded in accordance with 18
    30         Pa.C.S. § 4902, 4903 or 4904, as applicable, for a first
    20070H2121B2339                 - 200 -    

     1         conviction. A person that is convicted of a second or
     2         subsequent violation of subsection (a)(1) commits a
     3         felony of the second degree.
     4             (ii)  A person that violates subsection (a)(2)
     5         through (10) commits a misdemeanor of the first degree. A
     6         person that is convicted of a second or subsequent
     7         violation of subsection (a)(2) through (10) commits a
     8         felony of the second degree.
     9         (2)  (i)  For a first violation of subsection (a)(1)
    10         through (10), a person shall be sentenced to pay a fine
    11         of:
    12                 (A)  No less than $75,000 nor more than $150,000
    13             if the person is an individual.
    14                 (B)  No less than $300,000 nor more than $600,000
    15             if the person is a licensed table game entity.
    16                 (C)  No less than $150,000 nor more than $300,000
    17             if the person is a licensed manufacturer, licensed
    18             supplier or licensed table game service industry.
    19             (ii)  For a second or subsequent violation of
    20         subsection (a)(1) through (10), a person shall be
    21         sentenced to pay a fine of:
    22                 (A)  No less than $150,000 nor more than $300,000
    23             if the person is an individual.
    24                 (B)  No less than $600,000 nor more than
    25             $1,200,000 if the person is a licensed table game
    26             entity.
    27                 (C)  No less than $300,000 nor more than $600,000
    28             if the person is a licensed manufacturer, licensed
    29             supplier or licensed table game service industry.
    30  Section 2507.  Sanctions.
    20070H2121B2339                 - 201 -    

     1     (a)  Imposition of sanctions.--In addition to any penalty,
     2  fine or term of imprisonment authorized under law or under this
     3  act, the board shall, after hearing, have the authority to
     4  impose the following sanctions upon any person licensed,
     5  permitted or registered under this act:
     6         (1)  Revoke the license, permit or registration of any
     7     person for the conviction of any criminal offense or for
     8     committing any other offense or violation of this act which
     9     would disqualify the person from holding the license, permit
    10     or registration.
    11         (2)  Refuse to issue or revoke the license, permit or
    12     registration of any person for willfully and knowingly
    13     violating an order of the board, bureau, Pennsylvania State
    14     Police or the Attorney General.
    15         (3)  Suspend the license, permit or registration of any
    16     person pending hearing and determination in any case in which
    17     license, permit or registration revocation is authorized.
    18         (4)  Refuse to issue or suspend the operation certificate
    19     of any table game licensee for a violation of this act or
    20     regulations promulgated under this act relating to the
    21     operation of the licensed table game facility including table
    22     games operations, slot machine operations, internal controls
    23     and security.
    24         (5)  Assess any civil penalty as may be necessary to
    25     punish misconduct and to deter future violations. The civil
    26     penalty may not exceed $10,000 in the case of any individual
    27     licensee, permittee or registrant. In the case of a table
    28     game licensee, manufacturer licensee, supplier licensee,
    29     service industry licensee or any applicant for any such
    30     license, the civil penalty may not exceed $100,000.
    20070H2121B2339                 - 202 -    

     1         (6)  Order restitution of any moneys or property
     2     unlawfully obtained or retained by an applicant, licensee,
     3     permittee or registrant or any person acting on the behalf of
     4     any licensee, permittee or registrant.
     5         (7)  Enter a cease and desist order that specifies the
     6     conduct that is to be discontinued, altered or implemented by
     7     the table game applicant, licensee, permittee or registrant.
     8         (8)  Issue letters of reprimand or censure. The letters
     9     shall be made a permanent part of the file of each applicant,
    10     licensee, permittee or registrant so sanctioned.
    11         (9)  Impose any or all of the foregoing sanctions in
    12     combination with each other.
    13     (b)  Considerations for imposition of sanctions.--In
    14  considering appropriate sanctions in a particular case, the
    15  board shall consider:
    16         (1)  The risk to the public and to the integrity of table
    17     game operations and the gaming industry created by the
    18     conduct of the applicant, licensee, permittee or registrant.
    19         (2)  The nature and seriousness of the conduct of the
    20     table game licensee, permittee or registrant, and whether the
    21     conduct was purposeful or negligent and with knowledge that
    22     it was in contravention of the provisions of this act or the
    23     regulations promulgated under this act.
    24         (3)  Any justification or excuse for the conduct by the
    25     applicant, licensee, permittee or registrant.
    26         (4)  The prior history of the particular licensee,
    27     permittee or registrant involved with respect to table game
    28     activity.
    29         (5)  The corrective action taken by the applicant,
    30     licensee, permittee or registrant to prevent future
    20070H2121B2339                 - 203 -    

     1     misconduct of a like nature from occurring.
     2         (6)  In the case of a monetary penalty, the amount of the
     3     penalty in relation to the severity of the misconduct and the
     4     financial means of the applicant, licensee, permittee or
     5     registrant. The board may impose any schedule or terms of
     6     payment of such penalty as it may deem appropriate.
     7     (c)  Certain defense not allowed.--It shall be no defense to
     8  disciplinary action before the board that an applicant for a
     9  table game license or a licensee, permittee, registrant or any
    10  intermediary company or holding company of such applicant,
    11  licensee, permittee or registrant inadvertently, unintentionally
    12  or unknowingly violated a provision of this act. Such factors
    13  shall only go to the degree of the penalty to be imposed by the
    14  board and not to a finding of a violation itself.
    15     (d)  Notification of decision and hearing.--The board shall
    16  provide the applicant, licensee, permittee or registrant with
    17  written notification of its decision, including a statement of
    18  the reasons for its decision by certified mail within five
    19  business days of the decision, if the board:
    20         (1)  Refuses to issue or renew a license, permit or
    21     registration.
    22         (2)  Suspends or revokes a license, permit or
    23     registration.
    24         (3)  Assesses civil penalties.
    25         (4)  Orders restitution.
    26         (5)  Enters a cease and desist order.
    27         (6)  Issues a letter of reprimand or censure.
    28     (e)  Hearing.--Any applicant or licensee, permittee or
    29  registrant who has received notice of a refusal, suspension or
    30  revocation of a license, permit or registration, the assessment
    20070H2121B2339                 - 204 -    

     1  of civil penalties, an order of restitution, the entrance of a
     2  cease and desist order or the issuance of a letter of reprimand
     3  or censure from the board shall have the right to an
     4  administrative hearing before the board in accordance with 2
     5  Pa.C.S. Ch. 5 Subch. A (relating to practice and procedure of
     6  Commonwealth agencies) and Ch. 7 Subch. A (relating to judicial
     7  review of Commonwealth agency action).
     8     (f)  Authority to increase penalty for certain acts.--In
     9  addition to any other fines or penalties that the board may
    10  impose under this act or regulations of the board, if a person
    11  violates section 2501(a)(1) (relating to prohibitions), the
    12  board shall impose an administrative penalty of three times the
    13  amount of the license fee, tax or other assessment evaded and
    14  not paid, collected or paid over. This subsection is subject to
    15  2 Pa.C.S. Ch. 5 Subch. A and Ch. 7 Subch. A.
    16  Section 2508.  Continuing offenses.
    17     Any violation of this act that is determined to be an offense
    18  of a continuing nature shall be deemed to be a separate offense
    19  on each day during which the violation occurs. Nothing in this
    20  section shall be construed to preclude the commission of
    21  multiple violations of the provisions of this act in any one day
    22  that establish offenses consisting of separate and distinct acts
    23  or violations of the provisions of this act or regulations
    24  promulgated under this act.
    25  Section 2509.  Property subject to seizure, confiscation,
    26                 destruction or forfeiture.
    27     Any equipment, device or apparatus, money, material of
    28  gaming, proceeds or substituted proceeds or real or personal
    29  property used, obtained or received or any attempt to use,
    30  obtain or receive such device, apparatus, money, material,
    20070H2121B2339                 - 205 -    

     1  proceeds or real or personal property in violation of this act
     2  shall be subject to seizure, confiscation, destruction or
     3  forfeiture.
     4                             CHAPTER 26
     5               RACKETEERING AND CORRUPT ORGANIZATIONS
     6  Section 2601.  Racketeering and corrupt organizations.
     7     (a)  Applicability.--Any person or individual subject to the
     8  provisions of this act shall be subject to 18 Pa.C.S. § 911
     9  (relating to corrupt organizations). The prohibited activities
    10  set forth in 18 Pa.C.S. § 911(b) shall apply to any individual
    11  or person, organization or entity subject to the requirements of
    12  this act and to any enterprise that is engaged in activities
    13  that affect table game operations or ancillary industries that
    14  do business with any table game licensee, permittee, registrant
    15  or any other person subject to qualification or approval under
    16  the provisions of this act.
    17     (b)  Authority of the Attorney General.--The Attorney General
    18  is hereby authorized and empowered to investigate and institute
    19  criminal proceedings for violation of any provision of this act
    20  upon the request of the board, the bureau, the Pennsylvania
    21  State Police or upon its own motion. The Attorney General may
    22  establish a division within the Office of Attorney General to
    23  investigate violations of provisions of this act and any
    24  regulations promulgated pursuant to this act.
    25  Section 2602.  Racketeering activity.
    26     In addition to the meaning given to it under 18 Pa.C.S. §
    27  911(h) (relating to corrupt organizations) and for the purposes
    28  of this act, the term "racketeering activity" shall be further
    29  defined to include any of the following:
    30         (1)  Any act that is indictable under any of the
    20070H2121B2339                 - 206 -    

     1     following provisions of 18 U.S.C. (relating to Crimes and
     2     Criminal Procedure) or under any subsequent amendments or
     3     revisions to 18 U.S.C. that may be enacted after the
     4     effective date of this act:
     5             (i)  Section 201 (relating to bribery of public
     6         officials and witnesses).
     7             (ii)  Section 224 (relating to bribery in sporting
     8         contests).
     9             (iii)  Sections 471 (relating to obligations or
    10         securities of United States) through 509 (relating to
    11         possessing and making plates or stones for Government
    12         transportation requests).
    13             (iv)  Section 659 (relating to interstate or foreign
    14         shipments by carrier; State prosecutions), if the act
    15         indictable under section 659 is felonious.
    16             (v)  Section 664 (relating to theft or embezzlement
    17         from employee benefit plan).
    18             (vi)  Sections 891 (relating to definitions and rules
    19         of construction) through 894 (relating to collection of
    20         extensions of credit by extortionate means).
    21             (vii)  Section 1084 (relating to transmission of
    22         wagering information; penalties).
    23             (viii)  Section 1341 (relating to frauds and
    24         swindles).
    25             (ix)  Section 1343 (relating to fraud by wire, radio,
    26         or television).
    27             (x)  Section 1503 (relating to influencing or
    28         injuring officer or juror generally).
    29             (xi)  Section 1510 (relating to obstruction of
    30         criminal investigations).
    20070H2121B2339                 - 207 -    

     1             (xii)  Section 1511 (relating to obstruction of State
     2         or local law enforcement).
     3             (xiii)  Section 1951 (relating to interference with
     4         commerce by threats or violence).
     5             (xiv)  Section 1952 (relating to interstate and
     6         foreign travel or transportation in aid of racketeering
     7         enterprises).
     8             (xv)  Section 1953 (relating to interstate
     9         transportation of wagering paraphernalia).
    10             (xvi)  Section 1954 (relating to offer, acceptance,
    11         or solicitation to influence operations of employee
    12         benefit plan).
    13             (xvii)  Section 1955 (relating to prohibition of
    14         illegal gambling businesses).
    15             (xviii)  Sections 2314 (relating to transportation of
    16         stolen goods, securities, moneys, fraudulent State tax
    17         stamps, or articles used in counterfeiting) and 2315
    18         (relating to sale or receipt of stolen goods, securities,
    19         moneys, or fraudulent State tax stamps).
    20             (xix)  Sections 2421 (relating to transportation
    21         generally) through 2424 (relating to filing factual
    22         statement about alien individual).
    23         (2)  Any act that is indictable under the following
    24     provisions:
    25             (i)  Section 302 of the Labor Management Relations
    26         Act, 1947 (61 Stat. 136, 29 U.S.C. § 186).
    27             (ii)  Section 501(c) of the Labor Management
    28         Reporting and Disclosure Act of 1959 (Public Law 86-257,
    29         29 U.S.C. § 401 et seq.).
    30         (3)  Any offense involving bankruptcy fraud, fraud in the
    20070H2121B2339                 - 208 -    

     1     sale of securities, or the felonious manufacture,
     2     importation, receiving, concealment, buying, selling or
     3     otherwise dealing in narcotic or other dangerous drugs,
     4     punishable under any law of the United States. The Attorney
     5     General shall report any suspected racketeering activity
     6     under this section to the United States Department of
     7     Justice.
     8     (c)  Definition.--Notwithstanding any other provision of law
     9  to the contrary and for the purposes of this act, the definition
    10  of "enterprise" under 18 Pa.C.S. § 911(h) (relating to corrupt
    11  organizations) shall include any enterprise that is engaged in,
    12  or conduct activities that affect table game operations or
    13  ancillary industries that do business with any table game
    14  licensee, permittee or registrant or other licensee or person
    15  required to be qualified under this act.
    16                             CHAPTER 27
    17                          PUBLIC OFFICIALS
    18  Section 2701.  Financial interest and prohibitions.
    19     (a)  General rule.--Except as may be provided for the
    20  judiciary by rule or order of the Pennsylvania Supreme Court, an
    21  executive-level public employee, public official or party
    22  officer, or an immediate family member thereof, shall not
    23  intentionally or knowingly hold a financial interest in an
    24  applicant or a table game licensee or a table game manufacturer
    25  licensee, supplier licensee, service industry licensee or
    26  licensed racing entity, or in a holding company, affiliate,
    27  intermediary or subsidiary thereof, while the individual is an
    28  executive-level public employee, public official or party
    29  officer and for one year following termination of the
    30  individual's status as an executive-level public employee,
    20070H2121B2339                 - 209 -    

     1  public official or party officer.
     2     (b)  Employment.--Except as may be provided by rule or order
     3  of the Pennsylvania Supreme Court, no executive-level public
     4  employee, public official or party officer, or an immediate
     5  family member thereof, shall be employed by an applicant or a
     6  table game licensee or a table game manufacturer licensee,
     7  supplier licensee, service industry licensee or licensed racing
     8  entity, or by any holding company, affiliate, intermediary or
     9  subsidiary thereof, while the individual is an executive-level
    10  public employee, public official or party officer and for one
    11  year following termination of the individual's status as an
    12  executive-level public employee, public official or party
    13  officer.
    14     (c)  Grading.--An individual who violates this section
    15  commits a misdemeanor of the third degree and shall, upon
    16  conviction, be sentenced to pay a fine of not more than $1,000
    17  or to a term of imprisonment of not more than one year, or both.
    18     (d)  Divestiture.--An executive-level public employee, public
    19  official or party officer, or an immediate family member
    20  thereof, who holds a financial interest prohibited by this
    21  section shall divest the financial interest within three months
    22  of the effective date of the restrictions set forth in
    23  subsection (a), as applicable. Thereafter, any executive-level
    24  public employee, public official, party officer or immediate
    25  family member shall have 30 days from the date the individual
    26  knew or had reason to know or should have known of the violation
    27  or 30 days from the publication in the Pennsylvania Bulletin of
    28  a complete list of all persons or entities who have applied for
    29  or who hold a table game license or table game manufacturer,
    30  supplier or service industry license and all intermediaries,
    20070H2121B2339                 - 210 -    

     1  affiliates, subsidiaries and holding companies thereof. Such
     2  publication shall conform with the requirements of 4 Pa.C.S. §
     3  1202(b)(27) (relating to general and specific powers). The
     4  Ethics Commission may, for good cause, extend the time period
     5  under this subsection.
     6     (e)  Ethics Commission.--The Ethics Commission shall publish
     7  a list of all State, county, municipal and other government
     8  positions that meet the definitions of "public official" or
     9  "executive-level public employee" under subsection (f). The
    10  Office of Administration shall assist the Ethics Commission in
    11  the development of the list, which shall be published in the
    12  Pennsylvania Bulletin biennially and on the board's Internet
    13  website. Upon request, each public official shall have a duty to
    14  provide the Ethics Commission with adequate information to
    15  accurately develop and maintain the list. The Ethics Commission
    16  may impose a civil penalty under 65 Pa.C.S. § 1109(f) (relating
    17  to penalties) upon any public official or executive-level public
    18  employee who fails to cooperate with the Ethics Commission under
    19  this subsection.
    20     (f)  Definitions.--As used in this section, the following
    21  words and phrases shall have the meanings given to them in this
    22  subsection:
    23     "Executive-level public employee."  The term shall include
    24  the following:
    25         (1)  Deputy secretaries of the Commonwealth and the
    26     Governor's Office executive staff.
    27         (2)  An employee of the Executive Branch with
    28     discretionary power that may affect or influence the outcome
    29     of a State agency's action or decision and who is involved in
    30     the development of regulations or policies relating to a
    20070H2121B2339                 - 211 -    

     1     licensed table game entity or who is involved in other
     2     matters under this chapter. The term shall include an
     3     employee with law enforcement authority.
     4         (3)  An employee of a county or municipality with
     5     discretionary powers that may affect or influence the outcome
     6     of the county's or municipality's action or decision and who
     7     is involved in the development of law, regulation or policy
     8     relating to a licensed table game entity or who is involved
     9     in other matters under this chapter. The term shall include
    10     an employee with law enforcement authority.
    11         (4)  An employee of a department, agency, board,
    12     commission, authority or other governmental body not included
    13     in paragraph (1), (2) or (3) with discretionary power that
    14     may affect or influence the outcome of the governmental
    15     body's action or decision and who is involved in the
    16     development of regulation or policy relating to a licensed
    17     table game entity or who is involved in other matters under
    18     this chapter. The term shall include an employee with law
    19     enforcement authority.
    20     "Financial interest."  Owning or holding, or being deemed to
    21  hold, debt or equity securities or other ownership interest or
    22  profits interest. A financial interest shall not include any
    23  debt or equity security, or other ownership interest or profits
    24  interest, that is held or deemed to be held in any of the
    25  following:
    26         (1)  A blind trust over which the executive-level public
    27     employee, public official, party officer or immediate family
    28     member thereof may not exercise any managerial control or
    29     receive income during the tenure of office and the period
    30     under subsection (a). The provisions of this paragraph shall
    20070H2121B2339                 - 212 -    

     1     apply only to blind trusts established prior to the effective
     2     date of this paragraph.
     3         (2)  Securities that are held in a pension plan, profit-
     4     sharing plan, individual retirement account, tax-sheltered
     5     annuity, a plan established pursuant to section 457 of the
     6     Internal Revenue Code of 1986 (Public Law 99-514, 26 U.S.C. §
     7     1 et seq.) or any successor provision deferred compensation
     8     plan whether qualified or not qualified under the Internal
     9     Revenue Code of 1986 or any successor provision or other
    10     retirement plan that:
    11             (i)  is not self-directed by the individual; and
    12             (ii)  is advised by an independent investment adviser
    13         who has sole authority to make investment decisions with
    14         respect to contributions made by the individual to these
    15         plans.
    16         (3)  A tuition account plan organized and operated
    17     pursuant to section 529 of the Internal Revenue Code of 1986
    18     that is not self-directed by the individual.
    19         (4)  A mutual fund where the interest owned by the mutual
    20     fund in a licensed table game entity does not constitute a
    21     controlling interest as defined in this act.
    22     "Immediate family."  A spouse, minor child or unemancipated
    23  child.
    24     "Law enforcement authority."  The power to conduct
    25  investigations of or to make arrests for criminal offenses.
    26     "Party officer."  A member of a national committee; a
    27  chairman, vice chairman, secretary, treasurer or counsel of a
    28  State committee or member of the executive committee of a State
    29  committee; a county chairman, vice chairman, counsel, secretary
    30  or treasurer of a county committee in which a licensed table
    20070H2121B2339                 - 213 -    

     1  game facility is located; or a city chairman, vice chairman,
     2  counsel, secretary or treasurer of a city committee of a city in
     3  which a licensed table game facility is located.
     4     "Public official."  The term shall include the following:
     5         (1)  The Governor, Lieutenant Governor, a member of the
     6     Governor's cabinet, State Treasurer, Auditor General and
     7     Attorney General of the Commonwealth.
     8         (2)  A member of the Senate or House of Representatives
     9     of the Commonwealth.
    10         (3)  An individual elected or appointed to any office of
    11     a county or municipality that directly receives a
    12     distribution of revenue under this act.
    13         (4)  An individual elected or appointed to a department,
    14     agency, board, commission, authority or other governmental
    15     body not included in paragraph (1), (2) or (3) that directly
    16     receives a distribution of revenue under this act.
    17         (5)  An individual elected or appointed to a department,
    18     agency, board, commission, authority, county, municipality or
    19     other governmental body not included in paragraph (1), (2) or
    20     (3) with discretionary power that may influence or affect the
    21     outcome of an action or decision and who is involved in the
    22     development of regulation or policy relating to a licensed
    23     table game entity or who is involved in other matters under
    24     this act. The term does not include a member of a school
    25     board or an individual who held an uncompensated office with
    26     a governmental body prior to January 1, 2007, and who no
    27     longer holds the office as of January 1, 2007. The term
    28     includes a member of an advisory board or commission that
    29     makes recommendations relating to a licensed table game
    30     facility.
    20070H2121B2339                 - 214 -    

     1  § 2702.  Political influence.
     2     (a)  Contribution restriction.--The following persons shall
     3  be prohibited from contributing monetarily or in-kind to a
     4  candidate for nomination or election to any public office in
     5  this Commonwealth, or to any political party committee or other
     6  political committee in this Commonwealth or to any group,
     7  committee or association organized in support of a candidate,
     8  political party committee or other political committee in this
     9  Commonwealth:
    10         (1)  An applicant for a table game license; table game
    11     manufacturer license, supplier license or service industry
    12     license; principal employee license, key employee license or
    13     horse or harness racing license.
    14         (2)  A table game licensee, manufacturer licensee,
    15     supplier licensee, service industry licensee or licensed
    16     racing entity.
    17         (3)  A licensed principal employee or licensed key
    18     employee of a table game licensee, licensed manufacturer,
    19     licensed supplier, licensed service industry or licensed
    20     racing entity.
    21         (4)  An affiliate, intermediary, subsidiary or holding
    22     company of a table game licensee, licensed manufacturer,
    23     licensed supplier, licensed service industry or licensed
    24     racing entity.
    25         (5)  A licensed principal employee or licensed key
    26     employee of an affiliate, intermediary, subsidiary or holding
    27     company of a table game licensee, licensed manufacturer,
    28     licensed supplier, licensed service industry or licensed
    29     racing entity.
    30         (6)  A person who holds a similar gaming license in any
    20070H2121B2339                 - 215 -    

     1     jurisdiction, foreign or domestic, and the affiliates,
     2     intermediaries, subsidiaries, holding companies, principal
     3     employees or key employees thereof.
     4     (b)  Contributions to certain associates and organizations
     5  barred.--The persons prohibited from making political
     6  contributions under subsection (a) shall not make a political
     7  contribution, monetarily or in-kind, to any association or
     8  organization, including a nonprofit organization, that has been
     9  solicited by an elected official, executive-level public
    10  employee or candidate for nomination or election to a public
    11  office in this Commonwealth, if the person knows that the
    12  contribution or any portion thereof will be contributed to the
    13  official, employee or candidate for nomination or election to
    14  public office in this Commonwealth.
    15     (c)  Internet website.--
    16         (1)  The board shall establish an Internet website that
    17     includes a list of all applicants for and holders of a table
    18     game license, table game manufacturer license, table game
    19     supplier license, table game service industry license or
    20     racing entity license, and the affiliates, intermediaries,
    21     subsidiaries, holding companies, principals and key employees
    22     thereof, all persons holding a similar gaming license in
    23     another jurisdiction, foreign and domestic, and the
    24     affiliates, intermediaries, subsidiaries, holding companies,
    25     principals and key employees thereof, and any other entity in
    26     which the applicant or licensee has any debt or equity
    27     security or other ownership or profits interest. An applicant
    28     or licensee shall notify the board within seven days of the
    29     discovery of any change in or addition to the information.
    30     The list shall be published semiannually in the Pennsylvania
    20070H2121B2339                 - 216 -    

     1     Bulletin.
     2         (2)  A person who acts in good faith and in reliance on
     3     the information on the Internet website shall not be subject
     4     to any penalties or liabilities imposed for a violation of
     5     this section.
     6         (3)  The board shall request the information required
     7     under paragraph (1) from persons licensed in another
     8     jurisdiction who do not hold a license in this Commonwealth
     9     and from regulatory agencies in the other jurisdiction. If a
    10     licensee in another jurisdiction refuses to provide the
    11     information required under paragraph (1), the person and its
    12     officers, directors or persons with a controlling interest
    13     shall be ineligible to receive any license under this act.
    14     (d)  Annual certification.--The chief executive officer, or
    15  other appropriate individual, of each applicant for a table game
    16  license, table game manufacturer license, table game supplier
    17  license, table game service industry license or table game
    18  licensee, licensed table game supplier, licensed table game
    19  manufacturer, licensed table games service industry or licensed
    20  racing entity shall annually certify under oath to the board and
    21  the Department of State that such applicant or table game
    22  licensee, licensed supplier, licensed manufacturer, licensed
    23  service industry or licensed racing entity has developed and
    24  implemented internal safeguards and policies intended to prevent
    25  a violation of this section and that such applicant, licensee or
    26  licensed racing entity has conducted a good faith investigation
    27  that has not revealed any violation of this section during the
    28  preceding year.
    29     (e)  Penalties.--The first violation of this section by a
    30  licensed table game entity or any person that holds a
    20070H2121B2339                 - 217 -    

     1  controlling interest in such table game entity, or a subsidiary
     2  company thereof, and any officer, director or management-level
     3  principal or key employee of such table game licensee shall be
     4  punishable by a fine of not less than an average single day's
     5  gross table game revenue of the licensed table game entity
     6  derived from the operation of table games in this Commonwealth;
     7  a second violation of this section, within five years of the
     8  first violation, shall be punishable by at least a one-day
     9  suspension of the table game license held by the licensed table
    10  game entity and a fine of no less than an average two days'
    11  gross table game revenue of the licensed table game entity; a
    12  third violation of this section within five years of the second
    13  violation shall be punishable by the immediate revocation of the
    14  table game license held by the licensed table game entity. The
    15  first violation of this section by a table game manufacturer,
    16  table game supplier or table game service industry licensed
    17  pursuant to this act or by any person that holds a controlling
    18  interest in such licensed manufacturer, supplier or service
    19  industry or any affiliate, intermediary, subsidiary or holding
    20  company thereof, and any officer, director or management-level
    21  employee of such a licensee or any affiliate, intermediary,
    22  subsidiary or holding company thereof, shall be punishable by a
    23  fine of not less than one day's average of the gross profit from
    24  sales made by the manufacturer, supplier or service industry in
    25  this Commonwealth during the preceding 12-month period or
    26  portion thereof in the event the manufacturer, supplier or
    27  service industry has not operated in this Commonwealth for 12
    28  months; a second violation of this section within five years of
    29  the first violation shall be punishable by a one-month
    30  suspension of the table game license held by the manufacturer,
    20070H2121B2339                 - 218 -    

     1  supplier or service industry and a fine of not less than two
     2  times one day's average of the gross profit from sales made by
     3  the manufacturer, supplier or service industry in this
     4  Commonwealth during the preceding 12-month period or portion
     5  thereof in the event the manufacturer, supplier or service
     6  industry has not operated in this Commonwealth for 12 months. In
     7  no event shall the fine imposed under this section be in an
     8  amount less than $50,000 for each violation. In addition to any
     9  fine or sanction that may be imposed by the board, any person
    10  who makes a contribution in violation of this section commits a
    11  misdemeanor of the third degree.
    12     (f)  Definitions.--As used in this section, the following
    13  words and phrases shall have the meanings given to them in this
    14  subsection:
    15     "Contribution."  Any payment, gift, subscription, assessment,
    16  contract, payment for services, dues, loan, forbearance, advance
    17  or deposit of money or any valuable thing made to a candidate or
    18  political committee for the purpose of influencing any election
    19  in this Commonwealth or for paying debts incurred by or for a
    20  candidate or committee before or after any election. The term
    21  shall include the purchase of tickets for events including
    22  dinners, luncheons, rallies and other fundraising events; the
    23  granting of discounts or rebates not available to the general
    24  public; or the granting of discounts or rebates by television
    25  and radio stations and newspapers not extended on an equal basis
    26  to all candidates for the same office; and any payments provided
    27  for the benefit of any candidate, including payments for the
    28  services of a person serving as an agent of a candidate or
    29  committee by a person other than the candidate or committee must
    30  report. The term also includes any receipt or use of anything of
    20070H2121B2339                 - 219 -    

     1  value received by a political committee from another political
     2  committee and also includes any return on investments by a
     3  political committee.
     4     "Political committee."  Any committee, club, association or
     5  other group of persons that receive contributions or make
     6  expenditures.
     7                             CHAPTER 28
     8                   COMPULSIVE GAMBLING ASSISTANCE
     9  Section 2801.  Establishment of program; duties of licensee.
    10     (a)  General rule.--Each applicant for a table game license
    11  shall submit a compulsive gambling assistance plan to the board
    12  for approval, modification or disapproval. The plan shall
    13  provide standards, methods, procedures and practices for
    14  assisting in the prevention, education and treatment of
    15  compulsive and problem gambling. The compulsive gambling
    16  assistance plan shall be submitted with a person's application
    17  for a table game license. The development of the plan by an
    18  applicant and the approval of the plan by the board, in
    19  collaboration with the Department of Health, shall be a
    20  condition for the approval and issuance of a table game license
    21  under this act. The preservation and maintenance of the approved
    22  plan shall be a condition for the renewal of a table game
    23  license.
    24     (b)  Criteria for plan development.--Each compulsive gambling
    25  assistance plan shall include all of the following:
    26         (1)  A mission statement that identifies the goals of the
    27     table game licensee administering the plan.
    28         (2)  The identification of a plan manager or other person
    29     responsible for ensuring that the plan, as approved by the
    30     board, is implemented, monitored and maintained in accordance
    20070H2121B2339                 - 220 -    

     1     with the requirements of this act.
     2         (3)  An identification of the job classifications of each
     3     table game employee who, because of a particular job or
     4     employment function at the licensed table game facility, will
     5     be required to obtain compulsive and problem gambling
     6     training in accordance with the requirements of this chapter.
     7         (4)  Policies concerning the handling of compulsive
     8     gambling problems, including, but not limited to:
     9             (i)  Commitment to training.
    10             (ii)  Commitment to intervention.
    11             (iii)  Role and duties of a licensee's employees,
    12         including management employees.
    13             (iv)  Responsibility of patrons.
    14         (5)  Specific, detailed procedures for:
    15             (i)  Identifying compulsive gaming behavior or
    16         potential behavior in patrons and employees.
    17             (ii) Determining appropriate intervention techniques
    18         in a given circumstance.
    19             (iii)  Carrying out the intervention techniques.
    20         (6)  Printed literature to educate patrons about
    21     compulsive gambling and inform them of local, Statewide or
    22     national resources available to compulsive gamblers and their
    23     families. The materials may include signs and posters
    24     conspicuously displayed in gaming areas and brochures on
    25     compulsive gambling issues and sources of treatment and
    26     information. The plan shall specify the source of the printed
    27     literature and proposed method of dissemination to patrons
    28     and employees.
    29         (7)  Policy and procedures to prohibit facilitating,
    30     participating in or allowing the issuance of any loans or
    20070H2121B2339                 - 221 -    

     1     extension of credit, except as provided in this act, to a
     2     patron for gaming purposes.
     3         (8)  A comprehensive employee training plan, including
     4     training manuals and other materials and literature necessary
     5     to educate employees about compulsive gambling issues.
     6         (9)  A form for certifying, to the board's satisfaction,
     7     that each employee required to obtain compulsive gambling
     8     training has completed the training within the time period
     9     specified by the board. The certification program shall be
    10     approved by the Department of Health.
    11         (10)  Details of a follow-up compulsive gambling training
    12     program to periodically reinforce employee training.
    13         (11)  A timetable and procedures for implementing the
    14     compulsive gambling assistance plan.
    15         (12)  Any other policies and procedures designed to
    16     encourage responsible gaming, including methods for
    17     preventing gaming by minors and problem gamblers.
    18     (c)  Establishment of training program.--Each applicant for a
    19  table game license and each licensee shall include an employee
    20  training program in its compulsive gambling plan. The employee
    21  training program shall include:
    22         (1)  Characteristics and symptoms of compulsive behavior,
    23     including compulsive and problem gambling.
    24         (2)  Prevalence of compulsive and problem gambling.
    25         (3)  Relationship of compulsive gambling and other
    26     addictions.
    27         (4)  Social and economic consequences of compulsive and
    28     problem gambling, such as indebtedness, costs of treatment,
    29     suicide prevention and suicide, criminal behavior,
    30     unemployment and counseling for family.
    20070H2121B2339                 - 222 -    

     1         (5)  Identification of vulnerable demographic, including
     2     women, low-income individuals, senior citizens, the
     3     underemployed or unemployed and individuals who abuse drugs
     4     and/or alcohol or who display other characteristics of
     5     compulsive behavior.
     6         (6)  Intervention techniques to be employed where a
     7     compulsive or problem gambling problem is identified or
     8     suspected.
     9         (7)  Assistance and referral programs, including specific
    10     resources and training on how to approach and discuss
    11     compulsive or problem gambling with a patron and give advice
    12     and assistance relative to accessing available community,
    13     public and private professional behavior health services.
    14         (8)  Procedures designed to prevent the serving of
    15     alcohol to visibly intoxicated patrons, including procedures
    16     to prevent visibly intoxicated patrons from participating in
    17     all gaming activity.
    18         (9)  Procedures for removing self-excluded persons from a
    19     licensed facility, including, if necessary and appropriate,
    20     procedures that include obtaining assistance from law
    21     enforcement personnel.
    22         (10)  Procedures for the immediate removal of persons
    23     identified on the self-exclusion list from all rewards,
    24     promotional programs or other such programs or activities.
    25         (11)  Procedures to prevent any person identified on the
    26     self-exclusion list from receiving any advertisement,
    27     promotion or other targeted mailers after 30 days of
    28     receiving notice from the board that the person has been
    29     placed on the self-exclusion list.
    30         (12)  Procedures for the dissemination of written
    20070H2121B2339                 - 223 -    

     1     compulsive and problem gambling literature to patrons that
     2     explains the self-exclusion program.
     3         (13)  Procedures to prevent any person identified on the
     4     self-exclusion list from having access to or from receiving
     5     complimentary services or other like benefits of any kind or
     6     value.
     7     (d)  Conduct of and time-period for training.--Compulsive
     8  gambling training shall be conducted by professionals in
     9  behavioral health or addiction within 60 days of the start date
    10  of each new employee of the licensee that is required to receive
    11  training pursuant to the requirements of this chapter.
    12     (e)  Employee responsibility.--Each table game employee
    13  shall, as a condition of employment with a licensee, be required
    14  to identify patrons who the employee knows or suspects are
    15  compulsive or problem gamblers and inform an immediate
    16  supervisor or other managerial-level employee of the licensee of
    17  that knowledge or suspicion.
    18                             CHAPTER 29
    19                      MISCELLANEOUS PROVISIONS
    20  Section 2901.  Electronic funds transfer terminal; automatic
    21                     teller machines.
    22     (a)  Restriction on placement.--A person who holds a table
    23  game license shall not install, own or operate or allow another
    24  person to install, own or operate an electronic funds transfer
    25  terminal on the premises of a licensed table game facility that
    26  is less than 100 feet away from any table game in the facility.
    27     (b)  Prohibition on transfer of funds.--A person who holds a
    28  table game license shall not install, own or operate or allow
    29  another person to install, own or operate on the premises of the
    30  table game facility a game that is played with a device that
    20070H2121B2339                 - 224 -    

     1  allows a player to operate the game by transferring funds
     2  electronically from a credit or debit card.
     3     (c)  Definition.--As used in this section "electronic funds
     4  transfer terminal" means an information-processing device or an
     5  automatic teller machine used for executing deposit account
     6  transactions between financial institutions and their account
     7  holders by either the direct transmission of electronic impulses
     8  or the recording of electronic impulses for delayed processing.
     9  The fact that a device is used for other purposes does not
    10  prevent it from being an electronic funds transfer terminal
    11  pursuant to this definition.
    12  Section 2902.  Liquor license.
    13     Notwithstanding any other provision of law to the contrary,
    14  an applicant for or a holder of a table game license issued
    15  under the provisions of this act who is licensed to sell liquor
    16  or malt or brewed beverages pursuant to the act of December 12,
    17  1951 (P.L.90, No.21), known as the Liquor Code, and who is
    18  authorized to sell, furnish or give away such beverages in a
    19  licensed slot machine facility pursuant to 4 Pa.C.S. Pt. II
    20  (relating to gaming) shall be permitted to sell, furnish or give
    21  liquor or malt or brewed beverages on premises of the licensed
    22  table game facility so long as the liquor or malt or brewed
    23  beverage remains in and is consumed in the licensed facility.
    24  The provisions of 4 Pa.C.S. § 1521(c) (relating to liquor
    25  licenses at licensed facilities) shall apply to any applicant
    26  for or holder of a table game license under this act who is not
    27  a holder of a license pursuant to the Liquor Code and who is not
    28  a holder of a slot machine license of the time of licensure as a
    29  table game facility under this act.
    30  Section 2903.  Exclusive jurisdiction of Pennsylvania Supreme
    20070H2121B2339                 - 225 -    

     1                 Court.
     2     The Pennsylvania Supreme Court shall have exclusive
     3  jurisdiction to hear any challenge to or to render a declaratory
     4  judgment concerning the constitutionality of this act. The
     5  Supreme Court is authorized to take such action as it deems
     6  appropriate, consistent with the Supreme Court retaining
     7  jurisdiction over the matter, to find facts or to expedite a
     8  final judgment in connection with any challenge or request for
     9  declaratory relief.
    10  Section 2904.  Appropriations.
    11     (a)  Appropriation to board.--The sum of $3,500,000 is hereby
    12  appropriated to the Pennsylvania Gaming Control Board for the
    13  fiscal year July 1, 2007, to June 30, 2008, to implement and
    14  administer the provisions of this act. The money appropriated
    15  pursuant to this subsection shall be considered a loan from the
    16  General Fund and shall be repaid to the General Fund quarterly
    17  commencing with the date table game licensees commence operation
    18  of table games in accordance with this act. This appropriation
    19  shall be a continuing appropriation and shall not lapse until
    20  June 30, 2010.
    21     (b)  Appropriation to Pennsylvania State Police.--The sum of
    22  $3,500,000 is hereby appropriated from the General Fund to the
    23  Pennsylvania State Police for the fiscal year July 1, 2007, to
    24  June 30, 2008, to carry out the powers, duties and
    25  responsibilities conferred upon it under the applicable
    26  provisions of this act. The money appropriated under this
    27  subsection shall be considered a loan from the General Fund and
    28  shall be repaid by the board to the General Fund quarterly
    29  commencing when all table game licensees begin operation of
    30  table games in accordance with this act. This appropriation
    20070H2121B2339                 - 226 -    

     1  shall be a continuing appropriation and shall not lapse until
     2  June 30, 2010.
     3     (c)  Appropriation to department.--The sum of $2,000,000 is
     4  hereby appropriated from the General Fund to the Department of
     5  Revenue for the fiscal year July 1, 2007, to June 30, 2008, to
     6  carry out the powers, duties and responsibilities conferred upon
     7  it under the applicable provisions of this act. The money
     8  appropriated under this subsection shall be considered a loan
     9  from the General Fund and shall be repaid to the General Fund by
    10  the board quarterly commencing with the date table game
    11  licensees begin operation of authorized table games in
    12  accordance with this act. This appropriation shall be a
    13  continuing appropriation and shall not lapse until June 30,
    14  2010.
    15     (d)  Appropriation to the Office of Attorney General.--The
    16  sum of $2,000,000 is hereby appropriated from the General Fund
    17  to the Office of Attorney General for the fiscal year July 1,
    18  2007, to June 30, 2008, to carry out the powers and duties
    19  conferred upon it under the applicable provisions of this act.
    20  The money appropriated under this subsection shall be considered
    21  a loan from the General Fund and shall be repaid to the General
    22  Fund by the board quarterly commencing with the date table game
    23  licensees begin operation of authorized table games in
    24  accordance with this act. This appropriation shall be a
    25  continuing appropriation and shall not lapse until June 20,
    26  2010.
    27  Section 2905.  Severability.
    28     The provisions of this act are severable. If any provision of
    29  this act or its application to any person or circumstance is
    30  held invalid, the invalidity shall not affect other provisions
    20070H2121B2339                 - 227 -    

     1  or applications of this act that can be given effect without the
     2  invalid provision or application.
     3  Section 2906.  Repeals.
     4     (a)  Specific.--Repeals are as follows:
     5         (1)  The General Assembly declares that the repeals under
     6     paragraphs (2) and (3) are necessary to effectuate the
     7     provisions of this act.
     8         (2)  Section 493(2) of the act of April 12, 1951 (P.L.90,
     9     No.21), known as the Liquor Code, is repealed absolutely.
    10         (3)  The provisions of 18 Pa.C.S. § 5513(a) are repealed
    11     insofar as they are inconsistent with this act.
    12     (b)  General.--All other acts or parts of acts are repealed
    13  insofar as they are inconsistent with this act.
    14  Section 2907.  Effective date.
    15     This act shall take effect in 60 days.










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