PRINTER'S NO.  1568

  

THE GENERAL ASSEMBLY OF PENNSYLVANIA

  

HOUSE BILL

 

No.

1317

Session of

2009

  

  

INTRODUCED BY SANTONI, McCALL, EACHUS, DeWEESE, STURLA, J. TAYLOR, BRENNAN, CALTAGIRONE, BROWN, D. COSTA, FABRIZIO, GOODMAN, GALLOWAY, HARKINS, HARHAI, KOTIK, PAYTON, SEIP, SAINATO AND D. EVANS, APRIL 21, 2009

  

  

REFERRED TO COMMITTEE ON GAMING OVERSIGHT, APRIL 21, 2009  

  

  

  

AN ACT

  

1

Providing for tuition relief and for a video lottery program;

2

establishing penalties; and making appropriations.

3

The General Assembly of the Commonwealth of Pennsylvania

4

hereby enacts as follows:

5

CHAPTER 1

6

GENERAL PROVISIONS

7

Section 101.  Short title.

8

This act shall be known and may be cited as the Tuition

9

Relief Act.

10

Section 102.  Definitions.

11

The following words and phrases when used in this act shall

12

have the meanings given to them in this section unless the

13

context clearly indicates otherwise:

14

"Account."  The Enabling Students to Attend College Account.

15

"Agency."  The Pennsylvania Higher Education Assistance

16

Agency.

17

"Applicant."  A person who applies for a license under

 


1

section 502(a).

2

"Central computer system."  A central site computer system

3

controlled by the Department of Revenue that at all times is

4

connected to video lottery terminals and that, at a minimum, is

5

capable of monitoring, communicating, auditing, retrieving

6

information, generating games for and activating and disabling

7

each video lottery terminal.

8

"Cheating or thieving device."  A device to facilitate the

9

alignment of any winning combination or to remove from any video

10

lottery terminal money or other contents. The term includes a

11

tool, drill, wire, coin or token attached to a string or wire

12

and any electronic or magnetic device.

13

"Coin-operated amusement machine."  A machine that requires

14

the insertion of a coin, currency or tokens to play or activate

15

a game, the outcome of which is primarily determined by the

16

skill of the player. The term shall not include a video lottery

17

terminal.

18

"Community college."  A public college operated under Article

19

XIX-A of the act of March 10, 1949 (P.L.30, No.14), known as the

20

Public School Code of 1949.

21

"Department."  The Department of Revenue of the Commonwealth.

22

"Eligible student."  A student who meets all of the

23

following:

24

(1)  Is enrolled at the undergraduate level in a degree

25

or certificate program at a public institution of higher

26

education.

27

(2)  Does not hold a bachelor's degree or its equivalent.

28

(3)  Does one of the following:

29

(i)  Participates in the scholarship program.

30

(ii)  Meets the family income requirements under

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1

section 302(1).

2

"Enforcement Bureau."  The Bureau of Liquor Control

3

Enforcement of the Pennsylvania State Police.

4

"Expected family contribution."  A contribution as determined

5

under the policies and procedures established by the agency for

6

the scholarship program.

7

"Family income."  Income as established by the agency for the

8

scholarship program.

9

"First-time student."  An eligible student who has enrolled

10

in undergraduate level courses for the first time or is

11

readmitted to undergraduate level courses after a period of not

12

less than three years. The term shall include students enrolled

13

for the first time in the academic year who attended college in

14

the prior summer term or who entered with advanced standing due

15

to college credits earned before graduation from high school.

16

"Full-time student."  An eligible student that meets the

17

definition of full-time student as defined in the act of January

18

25, 1966 (1965 P.L.1546, No.541), referred to as the Higher

19

Education Scholarship Law.

20

"Fund."  The College Tuition Relief Fund.

21

"Gaming machine."  A device or machine that has the outcome

22

of play primarily determined by chance. The term shall include a

23

device that is not in working order or requires some mechanical

24

act of manipulation or repair to accomplish its adaptation,

25

conversion or workability. The term shall include an antique

26

slot machine under 18 Pa.C.S. § 5513(c) (relating to gambling

27

devices, gambling, etc.) when used for profit. The term shall

28

not include any of the following:

29

(1)  A coin operated amusement machine.

30

(2)  A video lottery terminal that has all of its seals

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1

or identification plates.

2

(3)  Slot machines as defined under 4 Pa.C.S. § 1103

3

(relating to definitions).

4

(4)  A game of chance under the act of December 19, 1988

5

(P.L.1262, No.156), known as the Local Option Small Games of

6

Chance Act.

7

(5)  Lottery terminals used under the act of August 26,

8

1971 (P.L.351, No.91), known as the State Lottery Law.

9

"Grocery store."  A retail establishment, that is less than

10

2,500 square feet or more than 8,500 square feet in size,

11

commonly known as a grocery store, supermarket or delicatessen,

12

where food, food products and supplies are sold for human

13

consumption on or off the premises with average monthly sales,

14

exclusive of wine sales, of not less than $5,000. The term shall

15

also include a licensed establishment with an interior

16

connection to a grocery store and the separate and segregated

17

portion of any other retail establishment which is dedicated

18

solely to the sale of food, food products and supplies for human

19

consumption on or off the premises with average monthly sales

20

with respect to the separate or segregated portion, exclusive of

21

wine sales, of not less than $5,000.

22

"Higher Education Scholarship Law."  The act of January 25,

23

1966 (1965 P.L.1546, No.541), referred to as the Higher

24

Education Scholarship Law.

25

"Licensed establishment."  A restaurant, eating place, hotel

26

or club as defined under section 102 of the act of April 12,

27

1951 (P.L.90, No.21), known as the Liquor Code, that operates

28

under a valid liquor or malt or brewed beverage license under

29

Article IV of the Liquor Code. The term shall not include a

30

grocery store or a licensed facility as defined under 4 Pa.C.S.

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1

§ 1103 (relating to definitions).

2

"Licensed establishment owner."  A person who holds a license

3

to sell liquor or malt or brewed beverages at a licensed

4

establishment.

5

"Liquor Code."  The act of April 12, 1951 (P.L.90, No.21),

6

known as the Liquor Code.

7

"Mode of instruction."  One of the following methods of

8

delivery of a public institution of higher education's

9

curriculum:

10

(1)  In person.

11

(2)  Via distance learning.

12

(3)  A combination of paragraphs (1) and (2).

13

"Office of Administrative Law Judge."  An adjudicative office

14

within the Pennsylvania Liquor Control Board charged with the

15

responsibility of presiding at all citation hearings and other

16

enforcement hearings under the act of April 12, 1951 (P.L.90,

17

No.21), known as the Liquor Code.

18

"Part-time student."  An eligible student who is enrolled on

19

a less than full-time basis.

20

"Pennsylvania Lottery."  The Division of the State Lottery of

21

the Department of Revenue.

22

"Person."  Any natural person, corporation, foundation,

23

organization, business trust, estate, limited liability company,

24

licensed corporation, trust, partnership, association or any

25

other form of legal business entity.

26

"Profits."  The total value of all cash, tickets and credits

27

used for the play of a video lottery terminal less the amount

28

paid out in prizes. The value of tickets and credits shall be as

29

determined by the secretary.

30

"Public institution of higher education."  A community

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1

college or an institution which is part of the State System of

2

Higher Education under Article XX-A of the act of March 10, 1949

3

(P.L.30, No.14), known as the Public School Code of 1949.

4

"Scholarship program."  The scholarship program established

5

under the act of January 25, 1966 (1965 P.L.1546, No.541),

6

referred to as the Higher Education Scholarship Law.

7

"Secretary."  The Secretary of Revenue of the Commonwealth.

8

"State Lottery Law."  The act of of August 26, 1971

9

(P.L.351, No.91), known as the State Lottery Law.

10

"Total cost of attendance."  The cost of attending a public

11

institution of higher education as determined under the policies

12

and procedures established by the United States Department of

13

Education.

14

"Unfunded total cost of attendance."  The total cost of

15

attendance minus the sum of all grants, scholarships, waivers

16

and other categories of gift-aid received, excluding veterans

17

educational benefits.

18

"Video lottery license."  A license issued by the secretary

19

authorizing a licensed establishment owner to possess and

20

operate one or more video lottery terminals at the licensed

21

establishment specified in the application for licensure.

22

"Video lottery retailer."  A licensed establishment owner

23

that holds a video lottery license.

24

"Video lottery terminal."  An interactive electronic terminal

25

or device that is compatible with the central computer system

26

and is approved by the secretary for the play of video lottery

27

games. The term shall not include an authorized slot machine as

28

defined under 4 Pa.C.S. § 1103 (relating to definitions).

29

CHAPTER 3

30

TUITION RELIEF

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1

Section 301.  Expansion of State scholarship program.

2

(a)  Supplemental grants.--Except as provided under

3

subsections (b), (c), (d) and (e) the agency shall award a

4

supplemental grant to an eligible student participating in the

5

scholarship program so that the eligible student's unfunded

6

total cost of attendance is equal to the eligible student's

7

expected family contribution.

8

(b)  Minimum unfunded cost.--The unfunded cost of attendance

9

may not be less than $1,000 annually on a full-time equivalent

10

basis.

11

(c)  Contribution up to $2,000.--In the case of an eligible

12

student whose expected family contribution is between one dollar

13

and $2,000, the unfunded total cost of attendance shall be

14

$1,000 annually on a full-time equivalent basis in the first and

15

second years of attendance, $1,500 on a full-time equivalent

16

basis in the third year of attendance and $2,000 on a full-time

17

equivalent basis in the fourth year of attendance.

18

(d)  Supplemental grant minimum.--Except as provided under

19

subsections (b), (c) and (e), the supplemental grant shall not

20

be less than 75% of the tuition rate of the public institution

21

of higher education applicable to the eligible student's status

22

as a full-time or part-time student.

23

(e)  Total cost.--The total amount of all grants,

24

scholarships, waivers and other categories of gift aid,

25

excluding veterans educational benefits, received by an eligible

26

student may not exceed the eligible student's total cost of

27

attendance.

28

Section 302.  Tuition relief for additional Commonwealth

29

students.

30

The agency shall award a tuition grant to an eligible student

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1

who is not eligible for a supplemental grant under section 301

2

under the following conditions:

3

(1)  The student's family income does not exceed

4

$100,000.

5

(2)  The tuition grant shall be equal to 50% of the

6

tuition rate of the public institution of higher education

7

applicable to the eligible student's status as a full-time or

8

part-time student, except that the total amount of all

9

grants, scholarships, waivers and other categories of gift-

10

aid, excluding veterans educational benefits, may not exceed

11

the total cost of attendance and that the unfunded total cost

12

of attendance may not be less than $1,000 annually on a full-

13

time equivalent basis.

14

(3)  A student whose scholarship under the scholarship

15

program is terminated, denied or not renewed for reasons

16

other than financial need, part-time enrollment status,

17

remedial content that does not exceed guidelines for the

18

Federal Pell grant program or mode of instruction may not

19

qualify for a grant under this section.

20

Section 303.  Implementation.

21

(a)  Awards.--Awards granted in the first year that grants

22

are awarded under this chapter shall be limited to first-time

23

students at public institutions of higher education. One

24

additional class of first-time students shall be added in each

25

subsequent year until the time as all classes of eligible

26

students at the public institution of higher education are

27

included. Nothing in this subsection shall limit the ability of

28

an eligible student who receives a grant under this chapter to

29

remain eligible for a grant upon returning from a gap in

30

enrollment, if all other eligibility requirements are met.

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1

(b)  Part-time student.--In the case of a part-time student,

2

the amount of the grant under this chapter to which the eligible

3

student is entitled shall be reduced in proportion to the degree

4

to which that student is not attending on a full-time basis,

5

except that the total funds awarded to any eligible student

6

shall not exceed the amount to which the student would have been

7

entitled had the educational program been completed in the

8

standard duration for a full-time student as established by the

9

agency.

10

(c)  Reduction.--If sufficient funds are not transferred to

11

the agency under section 304 for the award of grants under this

12

chapter, all grants under this chapter shall be proportionately

13

reduced so as not to exceed the total amount of available funds.

14

(d)  Scholarship program hold harmless.--It is the intent of

15

the General Assembly that the transfers to the agency for the

16

purpose of awarding grants to eligible students under this

17

chapter shall supplement, not supplant, grants made by the

18

agency under the scholarship program. In no fiscal year after

19

the effective date of this section shall the number and value of

20

grants awarded by the agency under the scholarship program be

21

less than the number and value of the grants awarded to students

22

in the 2008-2009 fiscal year.

23

(e)  Room and board.--The total cost of attendance at a

24

community college shall not include room and board for the

25

purpose of this chapter.

26

(f)  Domicile, renewal and transfer.--All provisions

27

regarding domicile, citizenship, renewal of scholarship and

28

transfers established by the agency for the scholarship program

29

shall apply to tuition grants awarded under this chapter.

30

Section 304.  Transfer.

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1

The Office of the Budget shall annually transfer proceeds

2

from the fund to the agency as follows:

3

(1)  As of July 15, 2009, and April 15 of each year

4

thereafter, the Secretary of the Budget shall certify the

5

total amount of revenue that will be available for transfer.

6

In calculating the total amount of available revenue, the

7

Secretary of the Budget shall take into account all of the

8

following:

9

(i)  (A)  For the certification to be completed no

10

later than July 15, 2009, revenue which:

11

(I)  has been advanced by the Commonwealth or

12

appropriated by the General Assembly to or

13

deposited into the fund prior to the date of

14

certification; and

15

(II)  is reasonably projected to be deposited

16

into the fund during the six months following the

17

date on which the certification is made.

18

(B)  The certification under this subparagraph

19

shall be applicable to the fiscal year in which

20

certification is made. The Secretary of the Budget

21

shall only certify an amount that is sustainable in

22

subsequent years.

23

(ii)  (A)  For certifications for fiscal years after

24

2009-2010, revenue which:

25

(I)  has been advanced by the Commonwealth or

26

appropriated by the General Assembly to or

27

deposited into the fund since the conclusion of

28

the period which the prior certification covered;

29

and

30

(II)  is reasonably projected to be deposited

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1

into the fund during the six months following the

2

date on which the certification is made.

3

(B)  The certifications under this subparagraph

4

shall be applicable to the fiscal year following the

5

fiscal year in which certification is made. The

6

Secretary of the Budget shall only certify an amount

7

that is sustainable in subsequent years.

8

(2)  If the actual revenue deposited into the fund during

9

the period which a certification covers exceeds projections,

10

any revenue in excess of the projections shall remain in the

11

fund and may be included in the certification for the

12

subsequent fiscal year.

13

(3)  For the 2009-2010 fiscal year, the Office of the

14

Budget shall transfer the amount certified under paragraph

15

(1) to the agency by a payment no later than the first day of

16

September and a second payment no later than the first day of

17

February. For the 2010-2011 fiscal year and each fiscal year

18

thereafter, the Office of the Budget shall transfer the

19

amount certified under paragraph (1) to the agency by a

20

payment no later than the first day of August and a second

21

payment no later than the first day of January.

22

(4)  Any portion of the transfer that the agency does not

23

expend in order to comply with this chapter shall be returned

24

to the fund and may be included in the certification for the

25

subsequent fiscal year.

26

CHAPTER 5

27

FUNDING FOR COLLEGE TUITION RELIEF

28

Section 501.  Video lottery.

29

(a)  Provision.--The secretary, by the authority granted

30

under the State Lottery Law, shall provide for video lottery

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1

through use of video lottery terminals by video lottery

2

retailers. Except as set forth under this act, video lottery

3

games shall be operated and administered in conformity with the

4

provisions of the State Lottery Law.

5

(b)  Placement.--A video lottery terminal may be placed for

6

operation only on the premises of a licensed establishment at

7

which a video lottery retailer is authorized to place and

8

operate a video lottery terminal under this chapter. A video

9

lottery terminal may not be placed in any other location.

10

(c)  Amount.--No more than five video lottery terminals may

11

be placed on the premises of a licensed establishment.

12

(d)  Applicability.--The act of December 19, 1988 (P.L.1262,

13

No.156), known as the Local Option Small Games of Chance Act,

14

shall not apply to this act.

15

Section 502.  Licensing.

16

(a)  Eligibility.--A licensed establishment owner may apply

17

to the secretary for a video lottery license under this section

18

on a form prescribed by the secretary if all of the following

19

conditions are met:

20

(1)  The license to sell liquor or malt or brewed

21

beverages at the licensed establishment is valid and in

22

effect and is not in safekeeping or under suspension at the

23

time the application is filed.

24

(2)  The licensed establishment owner is in good standing

25

with the Pennsylvania Liquor Control Board.

26

(3)  The licensed establishment owner agrees to have

27

sufficient funds available at the licensed establishment to

28

pay out anticipated prizes.

29

(b)  Requirements.--The following shall apply to video

30

lottery licenses issued under this section:

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1

(1)  A video lottery license may be issued at the

2

discretion of the secretary. Nothing in this chapter is

3

intended or shall be construed to create an entitlement to a

4

license by any person.

5

(2)  Before issuing a video lottery license, the

6

secretary shall consider at least the following factors:

7

(i)  The financial fitness, responsibility and

8

security of the applicant and the applicant's business.

9

(ii)  The volume of expected number of plays on a

10

video lottery terminal at the licensed establishment.

11

(3)    (i)  Notwithstanding subparagraph (ii), if the

12

secretary finds that the experience, character and

13

general fitness of the applicant and any officers,

14

directors, stockholders and partners of the applicant and

15

any other person that shares or will share in the profits

16

or participates or will participate in the management of

17

the affairs of the applicant are such that the

18

participation of the applicant as a video lottery

19

retailer will be consistent with the public interest,

20

convenience and necessity, the secretary may grant a

21

video lottery license to the applicant.

22

(ii)  The secretary may refuse to issue a license

23

under this section, or may suspend or revoke a license,

24

if:

25

(A)  The applicant or licensee or an officer,

26

director, stockholder or partner of the applicant or

27

any other person that shares or will share in the

28

profits or participates or will participate in the

29

management of the affairs of the applicant:

30

(I)  Has been convicted of a crime involving

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1

moral turpitude.

2

(II)  Has been convicted of pool selling or

3

bookmaking under 18 Pa.C.S. § 5514 (relating to

4

pool selling and bookmaking) or other form of

5

illegal gambling.

6

(III)  Has been convicted of any fraud or

7

misrepresentation in any context.

8

(IV)  Has violated any rule, regulation or

9

order of the department.

10

(B)  The applicant is not the owner or lessee of

11

the licensed establishment where it intends to

12

conduct video lottery.

13

(C)  A person other than the applicant shares or

14

will share in the profits of the applicant other than

15

as a bona fide owner of a financial interest in the

16

applicant or participates or will participate in the

17

management of the affairs of the applicant other than

18

as a bona fide manager of the operations of the

19

licensed establishment.

20

(4)  The secretary may issue a temporary video lottery

21

license upon the terms and conditions as the secretary deems

22

necessary, desirable or proper to effectuate the provisions

23

of this chapter.

24

(5)  The secretary shall refuse to grant or renew a video

25

lottery license and shall suspend and may revoke the video

26

lottery license of any video lottery retailer that is not

27

compliant with the tax laws of this Commonwealth.

28

(c)  Lottery tickets.--A video lottery retailer may be

29

required to sell Pennsylvania Lottery tickets as determined by

30

the secretary.

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1

(d)  Application fees.--An applicant for a video lottery

2

license shall pay a nonrefundable initial license application

3

fee of $500 and a nonrefundable annual license renewal fee of

4

$100. The fees collected under this subsection shall be

5

deposited in the account.

6

(e)  Third-party disclosure.--Each video lottery license

7

applicant or licensee shall accept any risk of adverse public

8

notice, embarrassment, criticism, damages or financial loss,

9

which may result from disclosure or publication by a third party

10

of material or information received by the department in

11

connection with an application or license. The video lottery

12

license applicant or licensee shall expressly waive any and all

13

claims against the secretary, the department, the Commonwealth

14

and its employees from damages as a result of disclosure or

15

publication by a third party of any material or information

16

supplied or developed under this section.

17

Section 503.  Central computer system.

18

The secretary shall establish a protocol for the use of a

19

central computer system. All licensed video lottery terminals

20

must be linked at all times to the central computer system.

21

Section 504.  Video lottery terminal.

22

In addition to the requirements established by the secretary

23

under the State Lottery Law for lottery terminals, a video

24

lottery terminal:

25

(1)  Shall be linked to and have the ability to interact

26

with the central computer system.

27

(2)  Shall not directly dispense coins, cash, tokens or

28

any other article of exchange or value that represents

29

winnings, except for tickets. The ticket shall indicate the

30

total amount of credits and the cash value of winnings or

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1

prizes, and the player shall turn in the ticket to the

2

appropriate person at the licensed establishment to receive

3

the cash award.

4

(3)  Shall not award a ticket or prize with a value in an

5

amount equal to or greater than $600 for any individual play

6

or other amount as determined by the secretary and published

7

in the Pennsylvania Bulletin from time to time.

8

(4)  Shall not pay out less than a theoretical payout

9

percentage. The secretary may adopt regulations that set and

10

define the theoretical payout percentage of video lottery

11

play, which shall not be less than 80%.

12

Section 505.  Fees.

13

In addition to the application fee under section 502(d) a

14

video lottery retailer shall pay at times determined by the

15

secretary but no more frequently than annually, a fee of $500

16

per video lottery terminal or other amount as determined by the

17

secretary, and published in the Pennsylvania Bulletin. The fees

18

shall be deposited in the account.

19

Section 506.  College Tuition Relief Fund.

20

(a)  Establishment.--

21

(1)  There is established a separate fund in the State

22

Treasury to be known as the College Tuition Relief Fund. 

23

(2)  A restricted receipts account to be known as the

24

Enabling Students to Attend College Account is established

25

within the fund.

26

(b)  Deposits.--Notwithstanding section 311(a) of the State

27

Lottery Law, money shall be deposited as follows:

28

(1)  All fees, fines and penalties imposed under this

29

chapter shall be deposited into the account as collected.

30

(2)  All profits from the play of a video lottery

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1

terminal and proceeds seized under section 507(e) shall be

2

deposited into the fund.

3

(c)  Distributions.--

4

(1)  Money in the account shall be distributed to the

5

department, the Pennsylvania Liquor Control Board and the

6

Pennsylvania State Police for the cost of carrying out their

7

respective obligations under this chapter and are

8

appropriated on a continuing basis for that purpose. The

9

costs shall include the start-up and ongoing cost of the

10

central computer system, video lottery terminals and the

11

administration and enforcement of this chapter. Payments to

12

the department, the Pennsylvania Liquor Control Board and the

13

Pennsylvania State Police shall be based on annual budgets

14

submitted through the Office of the Budget.

15

(2)  Money in the fund shall be distributed pursuant to

16

this paragraph. The money is appropriated on a continuing

17

basis for that purpose. The following shall apply:

18

(i)  Money in the fund representing 25% of the

19

profits from a video lottery terminal shall be

20

distributed to the video lottery retailer holding the

21

video lottery license permitting the operation of the

22

terminal.

23

(ii)  Money in the fund representing 50% of the

24

profits from all video lottery terminals shall remain in

25

the fund to be used for the program under Chapter 3.

26

(iii)  The balance of money in the fund shall be paid

27

first to the department, to the Pennsylvania Liquor

28

Control Board and to the Pennsylvania State Police for

29

any amount needed to pay the costs under paragraph (1)

30

not funded by money in the account and then to the

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1

General Fund.

2

(d)  State Lottery Fund hold harmless.--If, on June 15, 2010,

3

and June 15 of each year thereafter, the secretary determines

4

that a decrease in the revenue deposited in that fiscal year in

5

the State Lottery Fund is due to the play of video lottery

6

terminals in this Commonwealth, the secretary shall certify the

7

amount of the decrease due to the play. The secretary’s

8

determination shall be based upon an audit or other report of an

9

independent expert with respect to such decrease. A sum equal to

10

the amount of the decrease shall be deducted from the amount to

11

be distributed to the General Fund under subsection (c)(2)(iii)

12

in the next fiscal year and deposited in the State Lottery Fund.

13

The cost of the audit or independent report may be included in

14

the costs of the department to be funded from money in the

15

account under subsection (c)(1).

16

Section 507.  Enforcement.

17

(a)  Unlawful acts.--Except as provided under subsections (b)

18

and (c), it shall be unlawful for any person to do any of the

19

following:

20

(1)  To operate or attempt to operate a video lottery

21

terminal or to receive a prize or attempt to receive a prize

22

from a video lottery terminal if the person is under 21 years

23

of age.

24

(2)  To permit an individual under 21 years of age to

25

play a video lottery terminal or provide a prize to an

26

individual under 21 years of age as a result of playing a

27

video lottery terminal.

28

(3)  To permit a visibly intoxicated patron to play a

29

video lottery terminal.

30

(4)  To possess a gaming machine.

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1

(5)  To install or operate more video lottery terminals

2

in a licensed establishment than permitted by the department.

3

(6)  To possess a video lottery terminal without holding

4

a current video lottery license.

5

(7)  To possess or use or permit any person to possess or

6

use a cheating or thieving device.

7

(8)  To provide false information or documents in or with

8

respect to an application for a video lottery license or in

9

or with respect to any other information or document required

10

in the administration of this chapter.

11

(9)  To possess a video lottery terminal with altered or

12

missing identification.

13

(10)  To alter or remove or to permit the alteration or

14

removal of the identification plate on a video lottery

15

terminal.

16

(11)  To tamper or permit tampering with the connection

17

of the video lottery terminal to the central computer system.

18

(12)  To award or permit the award of a prize in excess

19

of the amount established under section 504 for an individual

20

play.

21

(13)  To fail to report or pay or to fail to truthfully

22

account for and pay any license fee or other amount imposed

23

under this chapter.

24

(14)  To attempt in any manner to evade or defeat the

25

payment of any license fee or other amount imposed under this

26

chapter.

27

(15)  To permit a video lottery terminal to be

28

transported to or repaired or opened on the premises of a

29

licensed establishment by a person other than a person

30

authorized by the secretary.

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1

(16)  To use currency other than lawful coin or legal

2

tender of the United States or a coin not of the same

3

denomination as the coin required to be used in the video

4

lottery terminal.

5

(17)  To possess any device, equipment or material which

6

the person knows has been manufactured, distributed, sold,

7

tampered with or serviced in violation of this chapter with

8

the intent to use the device, equipment or material as though

9

it had been manufactured, distributed, sold, tampered with or

10

serviced under this chapter.

11

(18)  To sell, offer for sale, represent or pass off as

12

lawful any device, equipment or material which the person

13

knows has been manufactured, distributed, sold, tampered with

14

or serviced in violation of this chapter.

15

(19)  To violate or knowingly permit the violation of any

16

provision of this chapter.

17

(b)  Compliance checks.--Notwithstanding any provision of

18

law, the enforcement bureau may conduct compliance checks in

19

licensed establishments. An individual who is under 21 years of

20

age may play a video lottery terminal and receive a prize from

21

playing the video lottery terminal in a licensed establishment

22

if all of the following apply:

23

(1)  The individual is at least 18 years of age.

24

(2)  The individual is an officer, employee or intern of

25

the enforcement bureau.

26

(3)  The individual has completed training specified by

27

the enforcement bureau.

28

(4)  The individual is acting within the scope of

29

prescribed duties.

30

(5)  The individual is acting under the direct control or

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1

supervision of an enforcement bureau officer who is at least

2

21 years of age.

3

(c)  Cheating device.--An authorized employee of the

4

enforcement bureau or an authorized employee of the department

5

may possess and use a cheating or thieving device, counterfeit

6

or altered billet, ticket, token or similar objects accepted by

7

a video lottery terminal or counterfeit or altered video lottery

8

terminal-issued tickets or credits in performance of the duties

9

of employment.

10

(d)  Criminal penalties.--In addition to any other penalties

11

provided by law, the following shall apply:

12

(1)  The provisions of 18 Pa.C.S. § 4902 (relating to

13

perjury), § 4903 (relating to false swearing) or § 4904

14

(relating to unsworn falsification to authorities) shall

15

apply to any person providing information or making any

16

statement, whether written or oral, as required under this

17

chapter.

18

(2)  A person convicted of violating subsection (a)(1),

19

(2) and (3) commits a summary offense.

20

(3)  Except for subsection (a)(1), (2) and (3), a person

21

convicted of violating any of the provisions of subsection

22

(a) commits a misdemeanor of the first degree and shall pay a

23

fine of not less than $5,000. Except for subsection (a)(1),

24

(2) and (3), a person convicted of violating any of the

25

provisions of subsection (a) that is convicted of a second or

26

subsequent violation commits a felony of the second degree

27

and shall pay a fine of not less than $15,000.

28

(e)  Seizure, forfeiture and destruction of gaming

29

machines.--

30

(1)  Gaming machines shall be considered to be per se

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1

illegal. Gaming machines and the proceeds therefrom may be

2

seized upon view as illegal contraband by the enforcement

3

bureau and any other law enforcement agency. The owner of a

4

gaming machine shall have no right to compensation for the

5

seizure and destruction of a gaming machine or the seizure of

6

proceeds of the gaming machine.

7

(2)  (i)  Notwithstanding any other provision of law, the

8

Office of Administrative Law Judge shall have the

9

authority to order forfeiture to the Commonwealth of

10

gaming machines and proceeds from the gaming machines

11

seized by the enforcement bureau and destruction of the

12

gaming machine. 

13

(ii)  Upon adjudication following a hearing, the

14

bureau may initiate forfeiture proceedings under this

15

section by filing a motion with the Office of

16

Administrative Law Judge.

17

(iii)  The motion may be filed at any time following

18

the issuance of the adjudication and disposition of all

19

appeals. The motion shall include all of the following:

20

(A)  A list and description of the property to be

21

forfeited.

22

(B)  The time and place of seizure.

23

(C)  The person in possession at time of seizure.

24

(D)  The owner, if known.

25

(E)  An attestation that the enforcement bureau

26

has sent a copy of the motion and a notice of

27

forfeiture to the video lottery retailer or to the

28

owner or possessor of the gaming machine by certified

29

mail at the last known address on file with the

30

Pennsylvania Liquor Control Board.

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1

(iv)  The notice of forfeiture under subparagraph

2

(iii)(E) shall state that the gaming machines will be

3

destroyed and proceeds will be forfeited to the

4

Commonwealth by operation of law, unless the licensed

5

establishment owner or possessor of the gaming machine

6

files a written objection with the Office of

7

Administrative Law Judge setting forth a right of

8

possession of the seized property. The written objection

9

must be postmarked within 30 days of the mailing date of

10

the notice.

11

(v)  The Office of Administrative Law Judge shall

12

issue an order of forfeiture and destruction if the

13

Administrative Law Judge is satisfied that the

14

requirements of this subsection have been met.

15

(vi)  Upon receipt of a written objection to

16

forfeiture and destruction from the licensed

17

establishment owner or possessor of the gaming machine,

18

the Office of Administrative Law Judge shall issue an

19

order denying the motion for an order of forfeiture and

20

destruction.

21

(vii)  The licensed establishment owner, owner or

22

possessor of the gaming machine or enforcement bureau

23

shall have a right of appeal from an order issued under

24

subparagraph (v) or (vi) in accordance with the

25

procedures under section 471 of the Liquor Code for

26

appeals of adjudications issued by the Office of

27

Administrative Law Judge, except that any appeal will not

28

place in issue the finding of fact, conclusion of law or

29

sanction of the underlying adjudication.

30

(3)  This subsection shall apply to cases involving

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1

gaming machines and proceeds seized by the enforcement bureau

2

prior to the effective date of this subsection.

3

(f)  Administrative sanctions.--

4

(1)  In addition to any other sanction, penalty or remedy

5

authorized by law or regulation, the secretary may impose any

6

sanction, penalty or remedy for a violation of this chapter

7

that is also available to the secretary under the State

8

Lottery Law.

9

(2)  The Office of Administrative Law Judge shall impose

10

all of the following penalties with respect to an order of

11

forfeiture and destruction issued under subsection (e):

12

(i)  For a first violation, a penalty of at least

13

$1,000 and not more than $5,000 against the owner or

14

possessor of a gaming machine seized by the bureau of

15

enforcement and for each subsequent violation, a penalty

16

of $15,000.

17

(ii)  In the case of a gaming machine seized from a

18

licensed establishment, for a first violation, a

19

suspension of the licensed establishment owner’s liquor

20

license for not less than seven consecutive days and for

21

each subsequent violation, a suspension of the liquor

22

license for not less than 14 consecutive days.

23

(3)  The Office of Administrative Law Judge shall impose

24

all of the following penalties with respect to any violation

25

of this chapter:

26

(i)  For a first violation, a penalty of at least

27

$1,000 and not more than $5,000 and for each subsequent

28

violation, a penalty of $15,000.

29

(ii)  For a first violation by a video lottery

30

retailer, a suspension of the liquor license held by the

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1

video lottery retailer for each licensed establishment

2

where the video lottery retailer operates video lottery

3

terminals under a video lottery license and for each

4

subsequent violation, a suspension of each such liquor

5

license for not less than 14 consecutive days.

6

(4)  A liquor license suspension imposed under paragraph

7

(2) or (3) shall begin within 30 days following the

8

imposition of the suspension.

9

Section 508.  Local taxes and fees.

10

Video lottery terminals shall not be exempt from taxes and

11

amusement fees imposed by local municipalities.

12

Section 509.  Exemption from State gaming laws.

13

The following provisions shall not apply to video lottery

14

terminals authorized under this chapter and their use as

15

authorized under this chapter:

16

(1)  4 Pa.C.S. Pt. II (relating to gaming).

17

(2)  18 Pa.C.S. § 5513 (relating to gambling devices,

18

gambling, etc.).

19

(3)  The act of December 19, 1988 (P.L.1262, No.156),

20

known as the Local Option Small Games of Chance Act.

21

Section 510.  Exemption from Federal regulation.

22

The General Assembly declares that the Commonwealth is exempt

23

from section 2 of the Gambling Devices Transportation Act (64

24

Stat. 1134, 15 U.S.C. § 1172). Shipments of approved video

25

lottery terminals into this Commonwealth in compliance with

26

sections 3 and 4 of the Gambling Devices Transportation Act (15

27

U.S.C. §§ 1173 and 1174) shall be deemed legal shipments into

28

this Commonwealth.

29

CHAPTER 51

30

MISCELLANEOUS PROVISIONS

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1

Section 5101.  Severability.

2

The provisions of this act are severable. If any provision of

3

this act or its application to any person or circumstance is

4

held invalid, the invalidity shall not affect other provisions

5

or applications of this act which can be given effect without

6

the invalid provision or application.

7

Section 5102.  Legislative intent.

8

The General Assembly finds that the cost of attending a

9

public community college or State university is increasingly out

10

of reach for Pennsylvania families. Therefore, the General

11

Assembly declares that the authorization of video lottery for

12

the purpose of raising funds to provide scholarships for

13

individuals seeking higher education is in the public interest.

14

The intent of the General Assembly is to confirm the authority

15

of the secretary under the State Lottery Law to conduct video

16

lottery and that the video lottery games are outside and

17

unrelated to gaming as authorized under 4 Pa.C.S. Pt. II

18

(relating to gaming).

19

Section 5103.  Temporary regulations.

20

(a)  Promulgation.--In order to facilitate the prompt

21

implementation of Chapter 5, the department may promulgate

22

temporary regulations which shall not be subject to:

23

(1)  Sections 201, 202 and 203 of the act of July 31,

24

1968 (P.L.769, No.240), referred to as the Commonwealth

25

Documents Law.

26

(2)  The act of June 25, 1982 (P.L.633, No.181), known as

27

the Regulatory Review Act.

28

(b)  Expiration.--The authority provided to the department to

29

adopt temporary regulations under subsection (a) shall expire

30

two years from the effective date of this section. Regulations

- 26 -

 


1

adopted after the two-year period shall be promulgated as

2

provided by law.

3

Section 5104.  Appropriations.

4

(a)  Department appropriations.--The sum of $20,000,000 is

5

appropriated from the General Fund to the Department of Revenue

6

for the fiscal period July 1, 2009, to June 30, 2010, to prepare

7

for, implement and administer the provisions of this act. The

8

money appropriated under this subsection shall be considered a

9

loan from the General Fund and shall be repaid to the General

10

Fund. The appropriation shall be a two-year appropriation and

11

shall not lapse until June 30, 2011.

12

(b)  Pennsylvania Liquor Control Board appropriations.--The

13

sum of $2,000,000 is appropriated from the General Fund to the

14

Liquor Control Board for the fiscal period July 1, 2009, to June

15

30, 2010, to prepare for, implement and administer the

16

provisions of this act. The money appropriated under this

17

subsection shall be considered a loan from the General Fund and

18

shall be repaid to the General Fund. The appropriation shall be

19

a two-year appropriation and shall not lapse until June 30,

20

2011.

21

(c)  Pennsylvania State Police appropriations.--The sum of

22

$3,000,000 is appropriated from the General Fund to the

23

enforcement bureau of the Pennsylvania State Police for the

24

fiscal period July 1, 2009, to June 30, 2010, to prepare for,

25

implement and administer the provisions of this act. The money

26

appropriated under this section shall be considered a loan from

27

the General Fund and shall be repaid to the General Fund. The

28

appropriation shall be a two-year appropriation and shall not

29

lapse until June 30, 2011.

30

Section 5105.  Effective date.

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1

This act shall take effect immediately.

- 28 -

 


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