HOUSE AMENDED

 

PRIOR PRINTER'S NOS. 1196, 1247

PRINTER'S NO.  1460

  

THE GENERAL ASSEMBLY OF PENNSYLVANIA

  

SENATE BILL

 

No.

711

Session of

2009

  

  

INTRODUCED BY EARLL, MELLOW, FONTANA, WOZNIAK, M. WHITE, KITCHEN, VANCE, WARD, TOMLINSON, TARTAGLIONE, ERICKSON, MUSTO, WASHINGTON, PIPPY, YAW, DINNIMAN, KASUNIC, LEACH, FARNESE, PILEGGI, ARGALL, ORIE, RAFFERTY, STACK AND COSTA, JUNE 22, 2009

  

  

AS REPORTED FROM COMMITTEE ON GAMING OVERSIGHT, HOUSE OF REPRESENTATIVES, AS AMENDED, OCTOBER 2, 2009   

  

  

  

AN ACT

  

1

Amending Title 4 (Amusements) of the Pennsylvania Consolidated

<--

2

Statutes, further providing for legislative intent and for

3

the definitions of "conviction," "licensed entity" and "slot

4

machine licensee"; providing for the definitions of

5

"executive-level public employee," "licensed entity

6

representative" and "trustee"; further providing for the

7

Pennsylvania Gaming Control Board, for powers of the board

8

and for code of conduct; providing for expenses of

9

Pennsylvania Gaming Control Board; further providing for

10

license or permit application hearing process and public

11

hearings, for board minutes and records, for regulatory

12

authority of board, for collection of fees and fines, for

13

slot machine license fee, for reports of board, for license

14

or permit prohibition, for slot machine license application

15

character requirements, for applications for license or

16

permit, for supplier licenses, for manufacturer licenses, for

17

additional licenses and permits and approval of agreements,

18

for license renewals, for change in ownership or control of

19

slot machine licensees and for nonportability of slot machine

20

license; providing for appointment of trustee; further

21

providing for Pennsylvania Gaming Economic Development and

22

Tourism Fund, for transfers from State Gaming Fund and for

23

financial and employment interests; providing for

24

prosecutorial and adjudicative functions; and further

25

providing for investigations and enforcement and for conduct

26

of public officials and employees.

27

Amending Title 4 (Amusements) of the Pennsylvania Consolidated

<--

28

Statutes, further providing for legislative intent, for

29

definitions, for the Pennsylvania Gaming Control Board

 


1

established, for applicability of other statutes, for powers

2

of the board and for code of conduct; providing for expenses

3

of regulatory agencies; further providing for licensed gaming

4

entity application appeals from board, for license or permit

5

application hearing process and public hearings, for board

6

minutes and records, for regulatory authority of board, for

7

collection of fees and fines, for slot machine license fee,

8

for number of slot machines and for reports of board;

9

providing for report by slot machine licensee; further

10

providing for diversity goals of board and for license or

11

permit prohibition; providing for specific authority to

12

suspend slot machine license; further providing for Category

13

3 slot machine license, for applications for license or

14

permit, for slot machine license application character

15

requirements, for slot machine license application financial

16

fitness requirements, for supplier licenses and for

17

manufacturer licenses; providing for gaming service provider

18

and for alternative supplier licensing standards; further

19

providing for occupation permit application, for additional

20

licenses and permits and approval of agreements, for license

21

renewals, for change in ownership or control of slot machine

22

licensee and for nonportability of slot machine license;

23

providing for appointment of trustee; authorizing table

24

games; further providing for slot machine license deposits;

25

providing for limitation on recovery of costs; further

26

providing for gross terminal revenue deductions, for itemized

27

budget reporting, for establishment of State Gaming Fund and

28

net slot machine revenue distribution, for distributions from

29

Pennsylvania Race Horse Development Fund, for Pennsylvania

30

Gaming Economic Development and Tourism Fund, for transfers

31

from State Gaming Fund, for responsibility and authority of

32

Department of Revenue, for wagering on credit, for no eminent

33

domain authority, for compulsive and problem gambling

34

program, for labor hiring preferences, for declaration of

35

exemption from Federal laws prohibiting slot machines and for

36

financial and employment interests; providing for additional

37

restrictions; further providing for political influence, for

38

regulation requiring exclusion of certain persons; providing

39

for prosecutorial and adjudicative functions; further

40

providing for investigations and enforcement, for conduct of

41

public officials and employees and for prohibited acts and

42

penalties; providing for additional authority and for report

43

of suspicious transactions; further providing for

44

interception of oral communications; providing for electronic

45

funds transfer terminals; regulating junkets; and providing

46

for gaming schools.

47

The General Assembly of the Commonwealth of Pennsylvania

48

hereby enacts as follows:

49

Section 1.  Section 1102(11) of Title 4 of the Pennsylvania

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1

Consolidated Statutes is amended and the section is amended by

2

adding paragraphs to read:

3

§ 1102.  Legislative intent.

4

The General Assembly recognizes the following public policy

5

purposes and declares that the following objectives of the

6

Commonwealth are to be served by this part:

7

* * *

8

(10.1)  The General Assembly has a compelling interest in

9

protecting the integrity of both the electoral process and

10

the legislative process by preventing corruption and the

11

appearance of corruption which may arise through permitting

12

campaign contributions by the gaming industry.

13

(11)  It is necessary to maintain the integrity of the

14

regulatory control and legislative oversight over the

15

operation of slot machines in this Commonwealth; to prevent

16

the actual or appearance of corruption that may result from

17

[large] campaign contributions; ensure the bipartisan

18

administration of this part; and avoid actions that may erode

19

public confidence in the system of representative government.

20

(11.1)  Completely banning political CAMPAIGN

21

contributions by certain individuals and entities subject to

22

this act is necessary to prevent corruption, or the

23

appearance of corruption, that may arise when politics and

24

gaming are intermingled.

25

Section 2.  The definitions of "conviction," licensed entity"

26

and "slot machine licensee" in section 1103 of Title 4 are

27

amended and the section is amended by adding definitions to

28

read:

29

§ 1103.  Definitions.

30

The following words and phrases when used in this part shall

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1

have the meanings given to them in this section unless the

2

context clearly indicates otherwise:

3

* * *

4

"Conviction."  A finding of guilt or a plea of guilty or nolo

5

contendere, whether or not a judgment of sentence has been

6

imposed as determined by the law of the jurisdiction in which

7

the prosecution was held. The term does not include a conviction

8

that has been expunged or overturned or for which an individual

9

has been pardoned or an order of Accelerated Rehabilitative

10

Disposition which has been issued.

11

* * *

12

"Executive-level public employee."  The term shall include

13

the following:

14

(1)  Deputy Secretaries of the Commonwealth and the

15

Governor's Office executive staff.

16

(2)  An employee of the executive branch with

17

discretionary power which may affect or influence the outcome

18

of a State agency's action or decision and who is involved in

19

the development of regulations or policies relating to a

20

licensed entity or who is involved in other matters under

21

this part. The term shall include an employee with law

22

enforcement authority.

23

(3)  An employee of a county or municipality with

24

discretionary powers which may affect or influence the

25

outcome of the county's or municipality's action or decision

26

and who is involved in the development of law, regulation or

27

policy relating to a licensed entity or who is involved in

28

other matters under this part. The term shall include an

29

employee with law enforcement authority.

30

(4)  An employee of a department, agency, board,

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1

commission, authority or other governmental body not included

2

in paragraph (1), (2) or (3) with discretionary power which

3

may affect or influence the outcome of the governmental

4

body's action or decision and who is involved in the

5

development of regulation or policy relating to a licensed

6

entity or who is involved in other matters under this part.

7

The term shall include an employee with law enforcement

8

authority.

9

* * *

10

"Licensed entity[.]" or "licensee."  Any slot machine

11

licensee, manufacturer licensee, supplier licensee or other

12

person licensed by the Pennsylvania Gaming Control Board under

13

this part.

14

"Licensed entity representative."  A person acting on behalf

15

of or representing the interest of any applicant, licensee,

16

permittee or registrant, including an attorney, agent or

17

lobbyist, regarding any matter which may reasonably be expected

18

to come before the board.

19

* * *

20

["Slot machine licensee."  A person that holds a slot machine

21

license.]

22

* * *

23

"Trustee."  A fiduciary appointed by the Pennsylvania Gaming

24

Control Board to preserve the viability of a licensed facility

25

and the integrity of gaming in this Commonwealth.

26

* * *

27

Section 3.  Section 1201(b), (b.1), (f)(3), (h)(5), (7.1),

28

(10), (11), (13), (14) and (15) and (k) of Title 4 are amended,

29

subsection (h) is amended by adding paragraphs and the section

30

is amended by adding a subsection to read:

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1

§ 1201.  Pennsylvania Gaming Control Board established.

2

* * *

3

(b)  Membership.--

4

(1)  The board shall consist of the following members:

5

[(1)] (i)  Three members appointed by the Governor.

6

[(2)] (ii)  One member appointed by each of the

7

following:

8

[(i)] (A)  The President pro tempore of the

9

Senate.

10

[(ii)] (B)  The Minority Leader of the Senate.

11

[(iii)] (C)  The Speaker of the House of

12

Representatives.

13

[(iv)] (D)  The Minority Leader of the House of

14

Representatives.

15

(2)  The chairman of the Community, Economic and

16

Recreational Development Committee of the Senate may hold a

17

public hearing on an appointee under paragraph (1).

18

(b.1)  Removal.--A member of the board shall serve at the

19

pleasure of the appointing authority and shall be removed from

20

office by the appointing authority:

21

(1)  for misconduct in office, willful neglect of duty or

22

conduct evidencing unfitness for office or incompetence; or

23

(2)  upon conviction of an offense graded as a felony, an

24

infamous crime, an offense under this part or an equivalent

25

offense under Federal law or the law of another jurisdiction.

26

* * *

27

(f)  Qualified majority vote.--

28

* * *

29

(3)  Notwithstanding any other provision of this part or

30

65 Pa.C.S. § 1103(j) (relating to restricted activities), a

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1

member shall disclose the nature of his disqualifying

2

interest, disqualify himself and abstain from voting in a

3

proceeding under this part in which his objectivity,

4

impartiality, integrity or independence of judgment may be

5

reasonably questioned, as provided in subsection (h)(6) or

6

section 1202.1(c)(3) (relating to code of conduct). If a

7

legislative appointee has disqualified himself, the qualified

8

majority shall consist of all of the remaining legislative

9

appointees and at least two gubernatorial appointees.

10

* * *

11

(h)  Qualifications and restrictions.--

12

* * *

13

(4.1)  No member appointed after the effective date of

14

this paragraph shall engage in any business, employment or

15

vocation for which the member shall receive any COMPENSATION

16

OR remuneration except for an individual who is reappointed

17

and who is a member of the board on the effective date of

18

this paragraph.

19

(5)  No member shall be paid or receive any fee or other

20

compensation other than salary and expenses provided by law

21

for any activity related to the duties or authority of the

22

board. [Nothing in this part shall prohibit a member from

23

engaging in any employment or receiving any compensation for

24

such employment that is not connected to or incompatible with

25

his service as a member of the board.]

26

* * *

27

(7.1)  Prior to being sworn as a member, an appointee and

28

his immediate family shall divest any financial interest in

29

any applicant, licensed facility or licensed entity and in an

30

affiliate, intermediary, subsidiary or holding company

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1

thereof owned or held by the appointee or known to be held by

2

the appointee's immediate family. For the duration of the

3

member's term and for [one year] two years thereafter, the

4

member and the member's immediate family may not acquire a

5

financial interest in any applicant, licensed facility or

6

licensed entity or in an affiliate, intermediary, subsidiary

7

or holding company thereof. For purposes of this paragraph,

8

the term "immediate family" shall mean spouse and any minor

9

or unemancipated child.

10

* * *

11

(10)  No former member may appear before the board in any

12

hearing or proceeding or participate in any other activity on

13

behalf of any applicant, licensed entity, or an affiliate,

14

intermediary, subsidiary or holding company thereof, or any

15

other licensee or permittee for a period of two years from

16

the termination of term of office.

17

(11)  No member, employee or independent contractor of

18

the board shall accept a complimentary service, wager or be

19

paid any prize from any wager at any licensed facility within

20

this Commonwealth or at any other facility outside this

21

Commonwealth which is owned or operated by a licensed gaming

22

entity or any of its affiliates, intermediaries, subsidiaries

23

or holding companies thereof for the duration of their term

24

of office, employment or contract with the board and for a

25

period of [one year] two years from the termination of term

26

of office, employment or contract with the board. The

27

provisions of this paragraph prohibiting wagering during the

28

term of employment shall not apply to employees [who] when

29

the employees utilize slot machines for testing purposes or

30

to verify the performance of a machine as part of an

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1

enforcement investigation.

2

* * *

3

(13)  No employee of the board [or individual employed by

4

an independent contractor of the board] whose duties

5

substantially involve licensing[,] or enforcement [or], the

6

development or adoption of laws, regulations or policy or who

7

has other discretionary authority which may affect the

8

outcome of an action or decision under this part, including

9

the executive director, bureau directors and attorneys, shall

10

do any of the following:

11

(i)  [accept] Accept employment with or be retained

12

by an applicant or licensed entity, or an affiliate,

13

intermediary, subsidiary or holding company thereof, for

14

a period of [one year] two years after the termination of

15

the employment relating to the conduct of gaming [or

16

contract with the board; or].

17

(ii)  [appear] Appear before the board in any hearing

18

or proceeding or participate in any other activity on

19

behalf of any applicant, licensee, permittee or licensed

20

entity, or an affiliate, intermediary, subsidiary or

21

holding company thereof, for a period of two years after

22

termination of the employment [or contract with the

23

board].

24

(iii)  As a condition of employment, an employee

25

under this paragraph shall sign an affidavit that the

26

employee will not accept employment with or be retained

27

by any applicant, licensed entity or an affiliate,

28

intermediary, subsidiary or holding company thereof for a

29

period of two years from the termination of employment.

30

An applicant or licensed entity or an affiliate,

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1

intermediary, subsidiary or holding company thereof shall

2

not employ or retain an individual who signed an

3

affidavit signed under this subparagraph. An applicant or

4

licensed entity or an affiliate, intermediary, subsidiary

5

or holding company that knowingly employs or retains an

6

individual in violation of this subparagraph shall be

7

subject to a penalty under section 1518(c) (relating to

8

prohibited acts; penalties).

9

(13.1)  No independent contractor or individual employed

10

by an independent contractor of the board whose duties

11

substantially involve consultation relating to licensing,

12

enforcement or the development or adoption of regulations or

13

policy under this part shall:

14

(i)  Accept employment with or be retained by an

15

applicant or a licensed entity or an affiliate,

16

intermediary, subsidiary or holding company thereof for a

17

period of one year after the termination of the contract

18

with the board.

19

(ii)  Appear before the board in any hearing or

20

proceeding or participate in any other activity on behalf

21

of an applicant, licensee, permittee or licensed entity

22

or an affiliate, intermediary, subsidiary or holding

23

company of an applicant, licensee, permittee or licensed

24

entity for a period of two years after termination of the

25

contract with the board.

26

(iii)  As a condition of a contract, an independent

27

contractor or individual employed by an independent

28

contractor of the board under this paragraph shall sign

29

an affidavit to not accept employment with or be retained

30

by any applicant, licensed entity or an affiliate,

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1

intermediary, subsidiary or holding company of an

2

applicant, licensed entity or affiliate for a period of

3

one year from the termination of employment. A licensed

4

entity or an affiliate, intermediary, subsidiary or

5

holding company of an applicant, licensed entity or

6

affiliate shall not employ or retain an individual who

7

signed an affidavit signed under this subparagraph. A

8

licensed entity or an affiliate, intermediary, subsidiary

9

or holding company thereof that knowingly employs or

10

retains an individual in violation of this subparagraph

11

shall be subject to a penalty under section 1518(c).

12

(14)  Upon the written request of an employee of the

13

board, the executive branch of the Commonwealth or a

14

political subdivision or of the agency or political

15

subdivision employing an employee, the State Ethics

16

Commission shall determine whether the individual's duties

17

substantially involve the development or adoption of laws, 

18

regulations or policy, licensing or enforcement under this

19

part or other discretionary authority which may affect the

20

outcome of an action or decision under this part and shall

21

provide a written determination to the employee to include

22

any prohibition under this paragraph. An individual who

23

relies in good faith on a determination under this paragraph

24

shall not be subject to any penalty for an action taken,

25

provided that all material facts set forth in the request for

26

a determination are correct.

27

(15)  If a member[, employee or independent contractor] 

28

of the board violates any provision of this section, the

29

appointing authority [or the board may, upon notice and

30

hearing,] may remove the person from the board[, withdraw the

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1

appointment or]. A member removed under this paragraph shall

2

be prohibited from future appointment to the board and shall

3

be prohibited from applying for a license or permit, from

4

becoming an independent contractor of the board, or

5

registering as a licensed entity representative for a period

6

of five years from the date of removal from the board. If an

7

employee or independent contractor of the board violates any

8

provision of this section, the board may, upon notice and

9

hearing, terminate the employment or contract, and the person

10

shall be ineligible for future [appointment,] employment or

11

contract with the board and [for approval of a license or

12

permit under this part for a period of two years thereafter] 

13

shall be prohibited from applying for a license or permit,

14

becoming an independent contractor or registering as a

15

licensed entity representative for a period of five years

16

from the date of termination of the employment or contract.

17

* * *

18

(k)  Appointments.--[The appointing authorities] Following

19

the initial appointment of members under subsection (b), the

20

appointing authority shall make [their initial] appointments

21

within 60 days of [the effective date of this part] a vacancy in

22

an office. No appointment shall be final until receipt by the

23

appointing authority of the required background investigation of

24

the appointee by the Pennsylvania State Police which shall be

25

completed within 30 days. No person who has been convicted in

26

any domestic or foreign jurisdiction of a felony, infamous crime

27

or gaming offense shall be appointed to the board.

28

* * *

29

(m.1)  Budgetary impasse.--If, in the event of a budgetary or

30

other fiscal crisis, the Governor implements a system in order

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1

to ORDERS THE furlough OF employees or close THE CLOSING OF any

2

Commonwealth agency, the board and its employees and all

3

employees of the Department of Revenue, the Pennsylvania State

4

Police and the Office of Attorney General whose duties involve

5

the regulation and oversight of gaming under this part shall not

6

be subject to furlough but shall continue to perform their

7

duties.

8

* * *

9

Section 4.  Section 1202(a)(4) and (b)(7), (23) and (30) of

10

Title 4 are amended and subsections (a) and (b) are amended by

11

adding paragraphs to read:

12

§ 1202.  General and specific powers.

13

(a)  General powers.--

14

* * *

15

[(4)  The board shall establish a system of

16

classification and compensation of its employees and shall

17

not be subject to the provisions of the act of April 9, 1929

18

(P.L.177, No.175), known as The Administrative Code of 1929,

19

as to classification and compensation for its employees and

20

conduct its activities consistent with the practices and

21

procedures of Commonwealth agencies.]

22

(4.1)  Within 90 days of the effective date of this

23

paragraph, the board shall establish a system of

24

classification and compensation of its employees and shall be

25

subject to the provisions of the act of April 9, 1929

26

(P.L.177, No.175), known as The Administrative Code of 1929,

27

as to classification and compensation for its employees and

28

conduct its activities consistent with the practices and

29

procedures of Commonwealth agencies. The provisions of this

30

paragraph shall apply to employees hired after the effective

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1

date of this paragraph. Nothing in this paragraph shall

2

prevent the board from altering a system, or establishing a

3

new system, of classification or compensation for employees

4

hired prior to the effective date of this section.

5

* * *

6

(b)  Specific powers.--The board shall have the specific

7

power and duty:

8

* * *

9

(7)  To administer oaths, examine witnesses and issue

10

subpoenas compelling the attendance of witnesses or the

11

production of documents and records or other evidence[. The

12

provisions of this paragraph shall apply to designated

13

officers and employees.], or to designate officers or

14

employees to perform these duties.

15

(7.1)  To order a person to answer a question or produce

16

evidence of any kind. If, in the course of an investigation

17

or hearing conducted under this part, a person refuses to

18

answer a question or to produce evidence on the grounds that

19

the answer or evidence will expose the person to criminal

20

prosecution, the board may adopt a resolution recommending a

21

grant of immunity that includes the specific question to be

22

posed or information or evidence being sought from the person

23

as follows:

24

(i)  The resolution shall be submitted to the

25

Attorney General for approval or disapproval within 20

26

days of receipt of the resolution. Upon the written

27

approval of the Attorney General, the board may issue an

28

order to compel the person to answer or produce evidence

29

with immunity.

30

(ii)  If the person who is the subject of the

- 14 -

 


1

immunity order provides the answer or evidence, the

2

person shall be immune from criminal prosecution based on

3

the answer or evidence that was the subject of the

4

immunity order.

5

(iii)  The person may be prosecuted for perjury

6

committed in the answer or production of evidence or held

7

in contempt for failing to give an answer or produce

8

evidence in accordance with the order. The answer or

9

evidence shall be admissible only against the person in a

10

criminal investigation, or a trial or other proceeding

11

for perjury or contempt.

12

(iv)  Immunity under this paragraph shall not

13

preclude the use of any other remedy or sanction

14

authorized by law.

15

* * *

16

(23)  The board shall not issue or renew a license or

17

permit unless it is satisfied that the applicant has

18

demonstrated by clear and convincing evidence that the

19

applicant is a person of good character, honesty and

20

integrity and is a person whose prior activities, criminal

21

record, if any, reputation, habits and associations do not

22

pose a threat to the public interest or the effective

23

regulation and control of slot machine operations or create

24

or enhance the danger of unsuitable, unfair or illegal

25

practices, methods and activities in the conduct of slot

26

machine operations or the carrying on of the business and

27

financial arrangements incidental thereto.

28

* * *

29

(30)  To promulgate rules and regulations necessary for

30

the administration and enforcement of this part, including

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1

regulations in cooperation with the Pennsylvania Liquor

2

Control Board and regulations relating to the sale and

3

service of liquor and malt and brewed beverages by licensees.

4

[Except as provided in section 1203 (relating to temporary

5

regulations), regulations] Regulations shall be adopted

6

pursuant to the act of July 31, 1968 (P.L.769, No.240),

7

referred to as the Commonwealth Documents Law, and the act of

8

June 25, 1982 (P.L.633, No.181), known as the Regulatory

9

Review Act.

10

(31)  To collect and post information on its Internet

11

website with sufficient detail to inform the public of the

12

controlling interest or ownership interest of an applicant

13

for a slot machine license or a licensed gaming entity or

14

affiliate, intermediary, subsidiary or holding company

15

thereof. The posting shall include:

16

(i)  The names of all persons with a controlling

17

interest in a publicly traded domestic or foreign

18

corporation, partnership, limited liability company or

19

other legal entity.

20

(ii)  The names of all persons who own a financial

21

equity share or interest with an ownership interest equal

22

to or greater than 1% of a privately held domestic or

23

foreign corporation, partnership, limited liability

24

company or other legal entity.

25

(iii)  The name of a trustee entitled to cast the

26

vote of a person under subparagraph (i) or (ii).

27

(iv)  The names of all officers, directors,

28

principals and key employees of a licensed gaming entity.

29

(32)  To appoint a trustee as prescribed in section 1332

30

(relating to appointment of trustee) to act on behalf of the

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1

Commonwealth and the board to operate a licensed facility and

2

ensure compliance with this part.

3

Section 5.  Section 1202.1 of Title 4 is amended to read:

4

§ 1202.1.  Code of conduct.

5

(a)  Scope.--The board shall adopt a comprehensive code of

6

conduct prior to the consideration of any license, permit or

7

registration application. The code of conduct shall supplement

8

all other requirements under this part and 65 Pa.C.S. Pt. II

9

(relating to accountability) and shall provide guidelines

10

applicable to members, employees, independent contractors of the

11

board and the immediate families of the members, as defined in

12

subsection (e), employees and independent contractors to enable

13

them to avoid any perceived or actual conflict of interest and

14

to promote public confidence in the integrity and impartiality

15

of the board. At a minimum, the code of conduct adopted under

16

this section shall include registration of licensed entity

17

representatives under subsection (b) and the restrictions under

18

[subsection (c)] subsections (c) and (c.1).

19

(b)  Registration.--

20

(1)  A licensed entity representative shall register with

21

the board in a manner prescribed by the board, which shall

22

include the name, employer or firm, address, telephone number

23

of both the licensed entity representative and the [licensed

24

entity] applicant, licensee, permittee or registrant or

25

individual being represented.

26

(2)  A licensed entity representative shall have an

27

[ongoing] affirmative duty to update its registration

28

information on an ongoing basis.

29

(3)  The [registration list] board shall maintain a

30

registration list which shall contain the information

- 17 -

 


1

required under paragraph (1) and which shall be available for

2

public inspection at the offices of the board and on the

3

board's Internet website.

4

(c)  Restrictions.--A member of the board shall:

5

(1)  Not engage in any ex parte communication with any

6

person.

7

(2)  Not accept any discount, gift, gratuity,

8

compensation, travel, lodging or other thing of value,

9

directly or indirectly, from any applicant, [licensee,] 

10

licensed entity, including any affiliate, subsidiary,

11

intermediary or holding company thereof, permittee,

12

registrant or licensed entity representative thereof.

13

(3)  Disclose and [disqualify] recuse himself from any

14

hearing or other proceeding in which the member's

15

objectivity, impartiality, integrity or independence of

16

judgment may be reasonably questioned due to the member's

17

relationship or association with a party connected to any

18

hearing or proceeding or a person appearing before the board.

19

(4)  Refrain from any financial or business dealing which

20

would tend to reflect adversely on the member's objectivity,

21

impartiality or independence of judgment.

22

(5)  Not hold or campaign for public office, hold an

23

office in any political party or political committee as

24

defined in section 1513(d)(relating to political influence),

25

contribute to or solicit contributions to a political

26

campaign, [party,] political party, political committee or

27

candidate, publicly endorse a candidate or actively

28

participate in a political campaign.

29

(6)  Not solicit funds for any charitable, educational,

30

religious, health, fraternal, civic or other nonprofit entity

- 18 -

 


1

from an applicant, licensed entity or affiliate, subsidiary,

2

intermediary or holding company of a licensed entity,

3

interested party, permittee or licensed entity

4

representative. [A] Unless prohibited under § 1201(h)(4.1)

5

(relating to Pennsylvania Gaming Control Board established),

6

a board member may serve as an officer, employee or member of

7

the governing body of a nonprofit entity and may attend, make

8

personal contributions to and plan or preside over the

9

entity's fundraising events. A board member may permit his

10

name to appear on the letterhead used for fundraising events

11

if the letterhead contains only the board member's name and

12

position with the nonprofit entity.

13

(7)  Not meet or engage in discussions with any

14

applicant, [person licensed under this part] licensed entity,

15

permittee, [or a] licensed entity representative or person

16

who provides goods, property or services to a slot machine

17

licensee unless the meeting or discussion occurs on the

18

business premises of the board and is recorded in a log

19

maintained for this purpose. The log shall be available for

20

public inspection during the regular business hours of the

21

board and shall be posted on the board's Internet website.

22

The log shall include the date and time of the meeting or

23

discussion, the names of the participants and the subject

24

matter discussed. The provisions of this paragraph shall not

25

apply to meetings [of the board] to consider matters

26

requiring the physical inspection of the equipment or

27

premises of an applicant or a licensed entity at [their] the 

28

location of the licensed facility.

29

(8)  Avoid impropriety and the appearance of impropriety

30

at all times and observe standards and conduct that promote

- 19 -

 


1

public confidence in the oversight of gaming.

2

(9)  Comply with any other laws, rules or regulations

3

relating to the conduct of a member.

4

(c.1)  Prohibitions.--

5

(1)  No member or attorney of the Office of Chief Counsel

6

advising the board on a particular licensing issue or

7

proceeding or employee whose duties relate to licensing and

8

who is advising the board on a particular licensing issue or

9

proceeding shall engage in any ex parte communication with

10

any person.

11

(2)  No attorney representing the bureau or the Office of

12

Enforcement Counsel or an applicant, licensee or permittee in

13

any proceeding shall engage in an ex parte communication with

14

a member, an attorney of the Office of Chief Counsel advising

15

the board on a proceeding or a hearing officer of the board.

16

(3)  No employee of the bureau or the Office of

17

Enforcement Counsel who is involved in a proceeding shall

18

engage in an ex parte communication with a member, an

19

attorney of the Office of Chief Counsel who is advising the

20

board on the proceeding or a hearing officer of the board.

21

(c.2)  Procedures relating to ex parte communications.--

22

(1)  An ex parte communication received or engaged in by

23

a board member, employee or hearing officer shall be recorded

24

in a log maintained for this purpose. The log shall be

25

available for public inspection during the regular business

26

hours of the board and shall be posted on the board's

27

Internet website. The LOG SHALL INCLUDE:

28

(I) The individual recording the ex parte

29

communication. shall include:

30

(i) (ii)  The date and time of the ex parte

- 20 -

 


1

communication.

2

(ii)  The name of any other individual (iii)  The

3

names of all individuals involved in the ex parte

4

communication.

5

(iii) (iv)  The subject matter and substance of the

6

ex parte communication.

7

(2)  In addition to documenting an ex parte communication

8

under paragraph (1), notification and an opportunity to

9

respond shall be provided to the following as follows:

10

(i)  A board member or employee shall promptly notify

11

the board and all persons directly affected by the

12

anticipated vote or action of the board of the substance

13

of the communication.

14

(ii)  A hearing officer shall promptly notify the

15

board and all parties to the proceeding before the

16

hearing officer of the substance of the communication.

17

(3)  (i)  A board member, employee or hearing officer who

18

received or engaged in an ex parte communication shall

19

recuse himself from any hearing or other proceeding

20

related to the ex parte communication if the context and

21

substance of the ex parte communication creates

22

substantial reasonable doubt as to the individual's

23

ability to act objectively, independently or impartially.

24

(ii)  A board member, employee or hearing officer who

25

elects not to recuse himself based on an ex parte

26

communication shall state his reasons for doing so on the

27

record prior to the commencement of the hearing or

28

proceeding.

29

(iii)  If a legislative appointee recuses himself

30

from any hearing or other proceeding under this section,

- 21 -

 


1

any qualified majority vote required under this part

2

shall consist of all of the remaining legislative

3

appointees and at least two gubernatorial appointees.

4

(iv)  Failure of a hearing officer or employee to

5

recuse himself from a hearing or other proceeding due to

6

receipt of an ex parte communication under this section

7

shall be grounds for appeal to the board of the failure

8

to recuse.

9

(v)  Failure of a board member to recuse himself from

10

a hearing or other proceeding due to receipt of an ex

11

parte communication under this section shall be grounds

12

for appeal of a decision to a court of competent

13

jurisdiction if the board action being appealed would not

14

have occurred without the participation of the board

15

member who received the ex parte communication.

16

(d)  Ex officio members.--The restrictions under subsection

17

(c)(5) shall not apply to ex officio members.

18

(e)  Definitions.--As used in this section, the following

19

words and phrases shall have the meanings given to them in this

20

subsection:

21

"Ex parte communication."  An off-the-record communication

22

engaged in or received by a member [or], employee or hearing

23

officer of the board regarding the merits of or any fact in

24

issue relating to a pending matter before the board or which may

25

reasonably be expected to come before the board in a contested

26

on-the-record proceeding. The term shall not include off-the-

27

record communications by or between a member [or], employee or

28

hearing officer of the board, Department of Revenue,

29

Pennsylvania State Police, Attorney General or other law

30

enforcement official prior to the beginning of the proceeding

- 22 -

 


1

solely for the purpose of seeking clarification or correction to

2

evidentiary materials intended for use in the proceedings.

3

"Immediate family."  The spouse, parents, children and

4

siblings and the spouses of any of those individuals.

5

["Licensed entity representative."  A person acting on behalf

6

of or representing the interest of any applicant, licensee,

7

permittee or registrant, including an attorney, agent or

8

lobbyist, regarding any matter which may reasonably be expected

9

to come before the board.]

10

Section 6.  Title 4 is amended by adding a section to read:

11

§ 1202.2.  Expenses of the Pennsylvania Gaming Control Board.

12

Members and employees of the board shall only be reimbursed

13

for actual and reasonable expenses incurred during the

14

performance of their duties. In order to receive reimbursement

15

for an expense in excess of $10, the member or employee shall

16

submit a receipt validating the expense incurred.

17

Reimbursements, allowances or other payments in an amount

18

greater than the expenses for which receipts are submitted are

19

prohibited. Receipts and requests for reimbursement shall be

20

financial records for purposes of the act of February 14, 2008

21

(P.L.6, No.3), known as the Right-to-Know Law.

22

Section 7.  Section 1205(b)(1) and (2) of Title 4 are amended

23

and the subsection is amended by adding paragraphs to read:

24

§ 1205.  License or permit application hearing process; public

25

input hearings.

26

* * *

27

(b)  Public input hearing requirement.--

28

(1)  [Prior to licensing a facility under this part, the

29

board shall hold at least one public input hearing on the

30

matter.] The board shall hold at least one public input

- 23 -

 


1

hearing prior to:

2

(i)  Licensing a facility.

3

(ii)  Approving the structural redesign of a licensed

4

facility located in a city of the first class.

5

(2)  All public input hearings [relating to an

6

application for a slot machine license] under paragraph (1) 

7

shall be held in the municipality where the licensed facility

8

will be, or is, located and shall be organized in cooperation

9

with the municipality.

10

* * *

11

(4)  In addition to any witnesses scheduled to testify

12

under paragraph (3), the board shall establish a public

13

comment period during which time members of the public may

14

address the board regarding the proposed license or

15

structural redesign under paragraph (1). The board, in its

16

discretion, may place reasonable time limits on an

17

individual's comments.

18

Section 8.  Sections 1206(f), 1207(4), 1208(1)(i) and (ii)

19

and 1209(b) of Title 4 are amended to read:

20

§ 1206.  Board minutes and records.

21

* * *

22

(f)  Confidentiality of information.--[All]

23

(1)  The following information submitted by an applicant

24

or licensee pursuant to section 1310(a) (relating to slot

25

machine license application character requirements) or

26

1308(a.1) (relating to applications for license or permit) or

27

obtained by the board or the bureau as part of a background

28

or other investigation from any source shall be [considered] 

29

confidential[.] and withheld from public disclosure:

30

(i)  All information relating to good character,

- 24 -

 


1

honesty and integrity, including family, habits,

2

reputation, history of criminal activity, business

3

activities, financial affairs and business, professional

4

and personal associations submitted under section 1310(a)

5

or 1308(a.1) or otherwise obtained by the board or the

6

bureau.

7

(ii)  Nonpublic personal information, including

8

telephone numbers, Social Security numbers, educational

9

records, memberships, medical records, tax returns and

10

declarations, actual or proposed compensation, financial

11

account records, creditworthiness or a financial

12

condition relating to an applicant, licensee or permittee

13

or the immediate family thereof.

14

(iii)  Documents and information relating to

15

proprietary information, trade secrets, patents or

16

exclusive licenses, architectural and engineering plans

17

and information relating to competitive marketing

18

materials and strategies, which may include customer-

19

identifying information or customer prospects for

20

services subject to competition.

21

(iv)  Security information, including risk prevention

22

plans, detection and countermeasures, location of count

23

rooms, emergency management plans, security and

24

surveillance plans, equipment and usage protocols and

25

theft and fraud prevention plans and countermeasures.

26

(v)  Information with respect to which there is a

27

reasonable possibility that public release or inspection

28

of the information would constitute an unwarranted

29

invasion into personal privacy of any individual as

30

determined by the board.

- 25 -

 


1

(vi)  Records of an applicant or licensee not

2

required to be filed with the Securities and Exchange

3

Commission by issuers that either have securities

4

registered under section 12 of the Securities Exchange

5

Act of 1934 (48 Stat. 881, 15 U.S.C. § 78a et seq.) or

6

are required to file reports under section 15(d) of the

7

Securities Exchange Act of 1934.

8

(vii)  Records considered nonpublic matters or

9

information by the Securities and Exchange Commission as

10

provided by 17 CFR 200.80 (relating to commission records

11

and information).

12

(viii)  Any financial information deemed confidential

13

by the board upon a showing of good cause by the

14

applicant or licensee.

15

(2)  No claim of confidentiality shall be made regarding

16

any information from a criminal history record check that is

17

available to the public under 18 Pa.C.S. Ch. 91 (relating to

18

criminal history record information) or § 9121(b) (relating

19

to noncriminal justice agencies and individuals).

20

(3)  This subsection shall not apply to any information 

21

that is otherwise publicly available in this Commonwealth or

22

another jurisdiction.

23

(2)  (4)  Except as provided in section 1517(f) (relating

24

to [investigation] investigations and enforcement), the

25

confidential information shall be withheld from public

26

disclosure in whole or in part, except that any confidential 

27

information shall be released upon the lawful order of a

28

court of competent jurisdiction or, with the approval of the

29

Attorney General, to a duly authorized law enforcement agency

30

or shall be released to the public, in whole or in part, to

- 26 -

 


1

the extent that such release is requested by an applicant and

2

does not otherwise contain confidential information about

3

another person.

4

(3)  (5)  The board may seek a voluntary waiver of

5

confidentiality from an applicant or licensed entity but may 

6

not require any applicant or licensed entity to waive any

7

confidentiality provided for in this subsection as a

8

condition for the approval of a license or any other action

9

of the board. Any [person who violates this subsection] 

10

current or former board member employee or contractor who

11

publicly discloses confidential information in violation of

12

this subsection commits a misdemeanor and shall be

13

administratively disciplined by discharge, suspension,

14

termination of contract or other formal disciplinary action

15

as the board deems appropriate.

16

* * *

17

§ 1207.  Regulatory authority of board.

18

The board shall have the power and its duties shall be to:

19

* * *

20

(4)  Require that each licensed entity provide to the

21

board its audited annual financial statements, with such

22

additional detail as the board from time to time shall

23

require, which information shall be submitted not later than

24

[60] 90 days after the end of the licensee's fiscal year.

25

* * *

26

§ 1208.  Collection of fees and fines.

27

The board has the following powers and duties:

28

(1)  To levy and collect fees from the various

29

applicants, licensees and permittees to fund the operations

30

of the board. The fees shall be deposited into the State

- 27 -

 


1

Gaming Fund as established in section 1403 (relating to

2

establishment of State Gaming Fund and net slot machine

3

revenue distribution) and distributed to the board upon

4

appropriation by the General Assembly. In addition to the

5

fees set forth in sections 1209 (relating to slot machine

6

license fee) and 1305 (relating to Category 3 slot machine

7

license), the board shall assess and collect fees as follows:

8

(i)  Supplier licensees shall pay a fee of $25,000

9

upon the issuance of a license and $10,000 for the annual

10

renewal of a supplier license. When the renewal period

11

under section 1317(c)(1) (relating to supplier licenses)

12

is three years, the fee shall be $30,000 for the renewal.

13

(ii)  Manufacturer licensees shall pay a fee of

14

$50,000 upon the issuance of a license and $25,000 for

15

the annual renewal of a manufacturer license. When the

16

renewal period under section 1317.1(c)(1) (relating to

17

manufacturer licenses) is three years, the fee shall be

18

$75,000 for the renewal.

19

* * *

20

§ 1209.  Slot machine license fee.

21

* * *

22

(b)  Term.--A slot machine license, after payment of the fee,

23

shall be in effect unless suspended, revoked or not renewed by

24

the board upon good cause consistent with the license

25

requirements as provided for in this part. Slot machine

26

licensees shall be required to update the information in their

27

initial applications annually, and the license of a licensee in

28

good standing shall be updated and renewed annually for two

29

subsequent years following the initial license issuance.

30

Thereafter, license renewals shall be every three years. As to

- 28 -

 


1

the renewal of a license, no additional license fee pursuant to

2

subsection (a) shall be required.

3

* * *

4

Section 9.  Section 1211 of Title 4 is amended by adding a

5

subsection to read:

6

§ 1211.  Reports of board.

7

* * *

8

(a.1)  Expenses.--Beginning 30 days after the effective date

9

of this subsection, the board shall post by the fifteenth of

10

each month on its Internet website a list of all its itemized

11

expenses of employees and members for the preceding month. The

12

list shall identify the nature of the expense and the employee

13

or board member to which an expense is attributable. The list

14

shall include each expense for which a receipt is submitted to

15

obtain reimbursement. If the expense is directly attributable to

16

or paid by a licensed facility, the list shall identify the

17

facility. By October 1 of each year, a final report of all

18

expenses for the preceding fiscal year shall be posted on the

19

board's Internet website and shall be transmitted to the

20

Appropriations Committee of the Senate, the Community, Economic

21

and Recreational Development Committee of the Senate, the

22

Appropriations Committee of the House of Representatives and the

23

Gaming Oversight Committee of the House of Representatives.

24

* * *

25

Section 10.  Section 1213 of Title 4 is amended to read:

26

§ 1213.  License or permit prohibition.

27

(1)  [No applicant for a license or permit under this

28

part, including principals and key employees,] The board

29

shall be prohibited from granting a principal license or key

30

employee license to a person who has been convicted of a

- 29 -

 


1

felony [or gambling offense] in any jurisdiction [shall be

2

issued a license or permit unless 15 years has elapsed from

3

the date of expiration of the sentence for the offense].

4

(2)  [When determining whether to issue a license or

5

permit to an applicant who has been convicted in any

6

jurisdiction of a felony or gambling offense,] In addition to

7

the prohibition under paragraph (1), the board shall be

8

prohibited from granting the following:

9

(i)  A principal license or key employee license to a

10

person who has been convicted of a gambling offense in

11

any jurisdiction that is not classified as a felony

12

unless 15 years has elapsed from the date of the

13

expiration of the sentence for the offense.

14

(ii)  A gaming employee permit or license other than

15

a principal license or key employee license to a person

16

who has been convicted of a felony or gambling offense in

17

any jurisdiction unless 15 years has elapsed from the

18

date of the expiration of the sentence for the offense.

19

(3)  In determining whether to issue a license or permit

20

under paragraph (2), the board shall consider the following

21

factors:

22

[(1)] (i)  The nature and duties of the applicant's

23

position with the licensed entity.

24

[(2)] (ii)  The nature and seriousness of the offense

25

or conduct.

26

[(3)] (iii)  The circumstances under which the

27

offense or conduct occurred.

28

[(4)] (iv)  The age of the applicant when the offense

29

or conduct was committed.

30

[(5)] (v)  Whether the offense or conduct was an

- 30 -

 


1

isolated or a repeated incident.

2

[(6)] (vi)  Any evidence of rehabilitation, including

3

good conduct in the community, counseling or psychiatric

4

treatment received and the recommendation of persons who

5

have substantial contact with the applicant.

6

Section 10.1.  Section 1308 of Title 4 is amended by adding a

7

subsection to read:

8

§ 1308.  Applications for license or permit.

9

* * *

10

(a.1)  Submission of information.--Notwithstanding the

11

provisions of 18 Pa.C.S. § 9124(b) (relating to use of records

12

by licensing agencies), an application for a license or permit

13

under this part shall include all arrests and convictions of the

14

applicant, including summary offenses. The information shall

15

include:

16

(1)  A brief description of the circumstances surrounding

17

the arrest.

18

(2)  The specific offense charged.

19

(3)  The ultimate disposition of the charges, including

20

the details of any dismissal, plea bargain, conviction or

21

sentence, including any pardon, expungement or order of

22

Accelerated Rehabilitative Disposition.

23

* * *

24

Section 10.2.  Sections 1310, 1317(c)(1), 1317.1(c)(1),

25

1321(a)(2), 1326(a), 1328(b) 1328(A)(1) and (B) and 1329 of

26

Title 4 are amended to read:

27

§ 1310.  Slot machine license application character

28

requirements.

29

(a)  Application.--

30

(1)  Every application for a slot machine license shall

- 31 -

 


1

include such information, documentation and assurances as may

2

be required to establish by clear and convincing evidence the

3

applicant's suitability, including good character, honesty

4

and integrity. Information shall include, without limitation,

5

information pertaining to family, habits, character,

6

reputation, criminal history background, business activities,

7

financial affairs and business, professional and personal

8

associates, covering at least the ten-year period immediately

9

preceding the filing date of the application.

10

(2)  Notwithstanding 18 Pa.C.S. § 9124(b) (relating to

11

use of records by licensing agencies), a conviction that has

12

been expunged or overturned, or for which a person has been

13

pardoned or an order of Accelerated Rehabilitative

14

Disposition has been issued, shall be included with an

15

application and shall be considered by the board as part of

16

the review of the applicant's suitability under paragraph

17

(1).

18

(b)  Civil judgments and law enforcement agency

19

information.--Each applicant shall notify the board of any civil

20

judgments obtained against the applicant pertaining to antitrust

21

or security regulation laws of the Federal Government, this

22

Commonwealth or any other state, jurisdiction, province or

23

country. In addition, each applicant shall produce a letter of

24

reference from law enforcement agencies having jurisdiction in

25

the applicant's place of residence and principal place of

26

business, which letter of reference shall indicate that the law

27

enforcement agencies do not have any pertinent information

28

concerning the applicant or, if the law enforcement agency does

29

have information pertaining to the applicant, shall specify the

30

nature and content of that information. If no letters are

- 32 -

 


1

received within 30 days of the request, the applicant may submit

2

a statement under oath which is subject to the penalty for false

3

swearing under 18 Pa.C.S. § 4903 (relating to false swearing)

4

that the applicant is or was during the period the activities

5

were conducted in good standing with the gaming or casino

6

enforcement or control agency.

7

(c)  Gaming or casino enforcement agency information.--If the

8

applicant has held a gaming license in a jurisdiction where

9

gaming activities are permitted, the applicant shall produce a

10

letter of reference from the gaming or casino enforcement or

11

control agency which shall specify the experiences of that

12

agency with the applicant, the applicant's associates and the

13

applicant's gaming operation. If no letters are received within

14

30 days of the request, the applicant may submit a statement

15

under oath which is subject to the penalty for false swearing

16

under 18 Pa.C.S. § 4903 that the applicant is or was during the

17

period the activities were conducted in good standing with the

18

gaming or casino enforcement or control agency.

19

(d)  Agency records.--Each applicant for a slot machine

20

license, principal license or key employee license shall be

21

required to apply to the Federal Government regarding agency

22

records under the Freedom of Information Act (Public Law 89-554,

23

5 U.S.C. § 522) pertaining to the applicant and provide the

24

board with the complete record received from the Federal

25

Government. The board may issue a conditional license to the

26

applicant prior to the receipt of information under this

27

subsection.

28

§ 1317.  Supplier licenses.

29

* * *

30

(c)  Review and approval.--Upon being satisfied that the

- 33 -

 


1

requirements of subsection (b) have been met, the board may

2

approve the application and issue the applicant a supplier

3

license consistent with all of the following:

4

(1)  [The license shall be for a period of one year. Upon

5

expiration, the license may be renewed in accordance with

6

subsection (d)] The initial license shall be for a period of

7

one year and shall be subject to renewal annually under

8

subsection (d) for two consecutive one-year periods following

9

the initial issuance. Thereafter, a license shall be subject

10

to renewal every three years. Nothing in this paragraph shall

11

relieve the licensee of the affirmative duty to notify the

12

board of changes to any information contained in the original

13

application.

14

* * *

15

§ 1317.1.  Manufacturer licenses.

16

* * *

17

(c)  Review and approval.--Upon being satisfied that the

18

requirements of subsection (b) have been met, the board may

19

approve the application and grant the applicant a manufacturer

20

license consistent with all of the following:

21

(1)  [The license shall be for a period of one year. Upon

22

expiration, a license may be renewed in accordance with

23

subsection (d)] The initial license shall be for a period of

24

one year and shall be subject to renewal annually under

25

subsection (d) for two consecutive one-year periods following

26

the initial issuance. Thereafter, a license shall be subject

27

to renewal every three years. Nothing in this paragraph shall

28

relieve the licensee of the affirmative duty to notify the

29

board of any changes relating to the status of its license or

30

relieve the licensee of its responsibility to notify the

- 34 -

 


1

board of changes to any information contained in the original

2

application.

3

* * *

4

§ 1321.  Additional licenses and permits and approval of

5

agreements.

6

(a)  Requirements.--In addition to the requirements for a

7

license or permit specifically set forth in this part, the board

8

may require a license [or], permit or other authorization, and

9

set a fee for the same, for any key or gaming employee or any

10

person who satisfies any of the following criteria:

11

* * *

12

(2)  The person is presently not [otherwise] required to

13

be licensed or permitted under this part and provides any

14

goods, property or services, including, but not limited to,

15

management contracts for compensation to a slot machine

16

licensee at the licensed facility. The board may by

17

regulation establish a classification system for a person who

18

provides goods, property or services to a slot machine

19

licensee. If the classification system requires the person

20

providing goods, property or services to submit to a criminal

21

history record check under 18 Pa.C.S. Ch. 91 (relating to

22

criminal history record information), the board shall notify

23

the slot machine licensee if the person providing goods,

24

property or services has been convicted of a felony or

25

gambling offense.

26

* * *

27

§ 1326.  License renewals.

28

(a)  Renewal.--All permits and licenses issued under this

29

part unless otherwise provided shall be subject to renewal on an

30

annual basis [upon the application of the holder of the permit

- 35 -

 


1

or license submitted to the board at least 60 days prior to the

2

expiration of the permit or license] for the first two years

3

following the initial issuance. Thereafter, all permits and

4

licenses shall be subject to renewal every three years. The

5

application for renewal shall be submitted at least 60 days

6

prior to the expiration of the permit or license and shall 

7

include an update of the information contained in the initial

8

and any prior renewal applications and the payment of any

9

renewal fee required by this part. A permit or license for which

10

a completed renewal application and fee, if required, has been

11

received by the board will continue in effect unless and until

12

the board sends written notification to the holder of the permit

13

or license that the board has denied the renewal of such permit

14

or license.

15

* * *

16

§ 1328.  Change in ownership or control of slot machine

17

licensee.

18

* * *

19

(a)  Notification and approval.--

20

(1)  A slot machine licensee shall notify the board

21

[prior to or] immediately upon becoming aware of any proposed

22

or contemplated change of ownership of the slot machine

23

licensee by a person or group of persons acting in concert

24

which involves any of the following:

25

(i)  More than 5% of a slot machine licensee's

26

securities or other ownership interests.

27

(ii)  More than 5% of the securities or other

28

ownership interests of a corporation or other form of

29

business entity that owns directly or indirectly at least

30

20% of the voting or other securities or other ownership

- 36 -

 


1

interests of the licensee.

2

(iii)  The sale other than in the ordinary course of

3

business of a licensee's assets.

4

(iv)  Any other transaction or occurrence deemed by

5

the board to be relevant to license qualifications.

6

* * *

7

(b)  Qualification of purchaser of slot machine licensee;

8

change of control.--The purchaser of the slot machine license or 

9

assets, other than in the ordinary course of business, of any

10

slot machine licensee shall independently qualify for a license

11

in accordance with this part and shall pay the license fee as

12

required by section 1209 (relating to slot machine license fee).

13

A change in control of any slot machine licensee shall require

14

that the slot machine licensee independently qualify for a

15

license in accordance with this part, and the slot machine

16

licensee shall pay a new license fee as required by section

17

1209, except as otherwise required by the board pursuant to this

18

section. The new license fee under this section shall be paid

19

upon the assignment and actual change of control or ownership of

20

the slot machine license.

21

* * *

22

§ 1329.  [Nonportability] Portability and relocation of slot

23

machine license.

24

(a)  General rule.--Each slot machine license shall only be

25

valid for the specific physical location within the municipality

26

and county for which it was originally granted.

27

(b)  Petition.--In evaluating a petition to relocate, the

28

board shall consider the following factors:

29

(1)  The reason for the relocation.

30

(2)  A comparative analysis, submitted by the petitioner,

- 37 -

 


1

detailing estimated gross terminal revenues at the new

2

location with estimated gross terminal revenues at the

3

original location.

4

(3)  A comparative analysis, submitted by the petitioner,

5

detailing the economic impact of the licensed facility at the

6

new location with the estimated economic impact at the

7

original location. The comparative analysis shall include the

8

total cost of the project and projected direct and indirect

9

employment figures.

10

(4)  A comprehensive traffic study commissioned by the

11

board.

12

(5)  Community support or opposition.

13

(6)  Any other information requested by the board.

14

(c)  Relocation.--A [No] slot machine licensee [shall] may be

15

permitted to move or relocate the physical location of the

16

licensed facility [without] with board approval [for] upon good

17

cause shown if:

18

(1)  the relocated licensed facility remains within the

19

same county as originally licensed;

20

(2)  the relocation will facilitate the timely operation

21

of slot machines;

22

(3)  the relocated licensed facility complies with all

23

other provisions of this part related to the siting and

24

location of a licensed facility; and

25

(4)  relocation of the licensed facility is in the best

26

interests of the Commonwealth.

27

(d)  Public input hearing.--The board shall hold at least one

28

public input hearing in the municipality where the licensed

29

facility will be located prior to approval of the relocation.

30

(e)  No grant or loan from the Commonwealth may be awarded

- 38 -

 


1

for the purpose of relocating or developing the relocated

2

licensed facility to comply with any conditions of approval of

3

the relocation.

4

Section 11.  Title 4 is amended by adding a section to read:

5

§ 1332.  Appointment of trustee.

6

(a)  Appointment.--Upon petition of the Office of Enforcement

7

Counsel, the board may order the appointment of a trustee from

8

the list required under subsection (j) to act on behalf of the

9

interests of the Commonwealth and the board to assure compliance

10

with this part and any conditions imposed upon the slot machine

11

license in the following circumstances:

12

(1)  Upon the revocation, suspension or nonrenewal of a

13

slot machine license or a principal license of an individual

14

who the board has determined controls a slot machine license

15

if the principal licensee is the only principal who exercises

16

operational control of the licensed facility.

17

(2)  Upon the failure to renew a slot machine license or

18

a principal license of an individual who the board has

19

determined controls a slot machine licensee if the principal

20

licensee is the only principal who exercises operational

21

control of the licensed facility until the slot machine or

22

principal license is renewed or until the discontinuation of

23

the trusteeship pursuant to subsection (i).

24

(3)  If necessary to protect the best interests of the

25

Commonwealth.

26

(b)  Qualifications.--The following shall apply:

27

(1)  A trustee shall be required to obtain a principal

28

license. The board may appoint a trustee and award the

29

trustee a temporary principal license as prescribed in board

30

regulations.

- 39 -

 


1

(2)  Before assuming duties, a trustee shall execute and

2

file a bond for the faithful performance of the trustee's

3

duties. The bond shall be payable to the board with sureties

4

and in the amount and form as required by board order. The

5

cost of the bond shall be paid by the former or suspended

6

licensee.

7

(c)  Powers.--A trustee appointed under this section shall

8

have all of the power and duties granted to exercise only those

9

powers and perform those duties expressly conferred upon the

10

trustee by the board. The board's order appointing the trustee

11

shall set forth the powers, duties and responsibilities of the

12

trustees which may include:

13

(1)  Maintaining and operating the licensed facility in a

14

manner that complies with this part and any conditions

15

imposed by the board.

16

(2)  Maintaining and operating the licensed facility

17

consistent with the measures generally taken in the ordinary

18

course of business including:

19

(i)  Entering into contracts.

20

(ii)  Borrowing money.

21

(iii)  Pledging, mortgaging or otherwise encumbering

22

the licensed facility or property thereof as security for

23

the repayment of the trustee's loans subject to any

24

provisions and restrictions in any existing credit

25

documents.

26

(iv)  Hiring, firing and disciplining employees.

27

(3)  Exercising the rights and obligations of the former

28

or suspended licensee.

29

(4)  Taking possession of all of the property of the slot

30

machine licensee, including its books, records and papers.

- 40 -

 


1

(5)  Establishing accounts with financial institutions.

2

An account may not be established with a financial

3

institution in which an affiliate of the former or suspended

4

licensee, or in which the trustee, has a financial

5

controlling interest.

6

(6)  Meeting with the former or suspended licensee.

7

(7)  Meeting with principals and key employees at the

8

licensed facility.

9

(8)  Meeting with the independent audit committee.

10

(9)  Meeting with the board's executive director and

11

keeping the board's executive director apprised of actions

12

taken and the trustee's plans and goals for the future.

13

(10)  Hiring legal counsel, accountants or other

14

consultants or assistants, with prior approval of the board,

15

as necessary to carry out the trustee's duties and

16

responsibilities.

17

(11)  Settling or compromising with any debtor or

18

creditor of the former or suspended licensee, including any

19

taxing authority.

20

(12)  Reviewing outstanding agreements to which the

21

former or suspended licensee is a party and advising the

22

board as to which, if any, of the agreements should be the

23

subject of scrutiny, examination or investigation by the

24

board.

25

(13)  Obtaining board approval prior to any sale, change

26

of ownership, change of control, change of financial status,

27

restructuring, transfer of assets or execution of a contract

28

or any other action taken outside of the ordinary course of

29

business.

30

(14)  Obtaining board approval for any payments outside

- 41 -

 


1

of those made in the ordinary course of business.

2

Notwithstanding any provision contained in this subsection to

3

the contrary, the trustee shall have the duty to conserve and

4

preserve the assets of the licensed entity.

5

(d)  Compensation.--The board shall establish the

6

compensation of the trustee and shall review and approve actual

7

and reasonable costs and expenses of the trustee, legal counsel,

8

accountants or other consultants or assistants hired by the

9

trustee and other persons the board may appoint in connection

10

with the trusteeship action. The compensation, costs and

11

expenses shall be paid by the former or suspended licensee.

12

Total compensation for the trustee and all individuals hired or

13

retained by the trustee under subsection (c)(10) shall not

14

exceed $600 per hour in the aggregate.

15

(e)  Reports.--A trustee shall file reports with regard to

16

the administration of the trusteeship with the board in the form

17

and at intervals as the board orders. The board may direct that

18

copies or portions of the trustee's reports be mailed to

19

creditors or other parties in interest and make summaries of the

20

reports available to the public and shall post them on the

21

board's Internet website.

22

(f)  Review of actions.--A creditor or party in interest

23

aggrieved by any alleged breach of a delegated power or duty of

24

a trustee in the discharge of the trustee's duties may request a

25

review of the trustee's action or inaction by filing a petition

26

in accordance with board regulations. The petition must set

27

forth in detail the pertinent facts and the reasons why the

28

facts constitute the alleged breach. The board will review any

29

petition filed under this section and take whatever action, if

30

any, it deems appropriate.

- 42 -

 


1

(g)  Effect of the trusteeship.--After issuance of an order

2

to appoint a trustee, the former or suspended principal or slot

3

machine licensee may not exercise any of its privileges, collect

4

or receive any debts and pay out, sell, assign or transfer any

5

of its property to anyone without prior approval of the

6

appointed trustee and the board.

7

(h)  Disposition of net earnings income.--During the period

8

of trusteeship, net earnings income shall be deposited in an

9

escrow account maintained for that purpose. Payment of net

10

earnings income during the period of trusteeship may not be made

11

by the trustee without the prior approval of the board. A

12

suspended or former principal or slot machine licensee may

13

request payment distribution of all or a portion of the net

14

earnings income during the period of trusteeship by filing a

15

petition in accordance with board regulation. The suspended or

16

former principal or slot machine licensee shall have the burden

17

of demonstrating good cause for the payment distribution of the

18

net earnings income requested.

19

(i)  Discontinuation.--The board may issue an order to

20

discontinue a trusteeship when:

21

(1)  The board determines that the cause for which the

22

trustee was appointed no longer exists.

23

(2)  The trustee has, with the prior approval of the

24

board, consummated the sale, assignment, conveyance or other

25

disposition of all the property or interest of the former

26

principal or slot machine licensee relating to the slot

27

machine license.

28

Upon board approval of the discontinuation of the trusteeship,

29

the trustee shall, in an orderly manner, transfer the property

30

of the former or suspended principal or slot machine licensee.

- 43 -

 


1

(j)  List of approved trustees.--The board shall promulgate

2

regulations to establish a list of persons approved by the board

3

qualified to serve as a trustee. At a minimum, the regulations

4

shall provide for the following:

5

(1)  The minimum qualifications an individual must

6

possess to be approved as a trustee, which shall include

7

possession of a principal license.

8

(2)  The procedure for placement on or removal from the

9

list.

10

(3)  Any other information the board deems necessary to

11

carry out the intent of this section.

12

Section 12.  Section 1407 of Title 4 is amended by adding

13

subsections to read:

14

§ 1407.  Pennsylvania Gaming Economic Development and Tourism

15

Fund.

16

* * *

17

(e)  Annual report.--The Office of the Budget in cooperation

18

with the Department of Community and Economic Development shall

19

submit an annual report of all distribution of funds under this

20

section to the chairman and minority chairman of the

21

Appropriations Committee of the Senate, the chairman and

22

minority chairman of the Community, Economic and Recreational

23

Development Committee of the Senate, the chairman and minority

24

chairman of the Appropriations Committee of the House of

25

Representatives and the chairman and minority chairman of the

26

Gaming Oversight Committee of the House of Representatives. The

27

report shall include detailed information relating to transfers

28

made from the Pennsylvania Gaming Economic Development and

29

Tourism Fund and all reimbursements, distributions and payments

30

made under subsection (b) or the act of July 25, 2007 (P.L.342,

- 44 -

 


1

No.53), known as Pennsylvania Gaming Economic Development and

2

Tourism Fund Capital Budget Itemization Act of 2007. The report

3

shall be submitted by January 31, 2010, and by January 31 of

4

each year thereafter.

5

(f)  Local report.--A city of the first class, city of the

6

second class, county of the second class, convention center or

7

convention center authority, professional hockey franchise

8

sports and exhibition authority of a county of the second class, 

9

urban redevelopment authority, airport authority or other entity

10

that receives money from the fund pursuant to an Economic

11

Development Capital Budget under this section subsection (b) or

12

the act of July 25, 2007 (P.L.342, No.53), known as Pennsylvania

13

Gaming Economic Development and Tourism Fund Capital Budget

14

Itemization Act of 2007, shall submit an annual report to the

15

Office of the Budget, the chairman and minority chairman of the

16

Appropriations Committee of the Senate, the chairman and

17

minority chairman of the Community, Economic and Recreational

18

Development Committee of the Senate, the chairman and minority

19

chairman of the Appropriations Committee of the House of

20

Representatives and the chairman and the minority chairman of

21

the Gaming Oversight Committee of the House of Representatives.

22

The report shall include detailed information, including records

23

of expenditures, payments and other distributions made from

24

money received under subsection (b). The initial report shall

25

include information on all funds received prior to January 31,

26

2010. The report shall be submitted by January 31, 2010, and by

27

January 31 of each year thereafter until all funds under this

28

section are distributed or received. An entity that receives

29

funds after the effective date of this section shall submit an

30

initial report by January 31 of the year following receipt of

- 45 -

 


1

the funds.

2

(g)  Distribution to international airport.--Notwithstanding

3

the provisions of section 7(d) of the act of July 25, 2007

4

(P.L.342, No.53), known as the Pennsylvania Gaming Economic

5

Development and Tourism Fund Capital Budget Itemization Act of

6

2007, following the distribution of $42.5 million of funds

7

allocated to the county for debt service and economic

8

development projects for an international airport in a county of

9

the second class under section 3(2)(i)(E) of said act, all

10

remaining funds shall be distributed directly to an authority

11

that operates an international airport in a county of the second

12

class.

13

Section 13.  Sections 1408(c) and 1512(a.5) and (b) of Title

14

4 are amended to read:

15

§ 1408.  Transfers from State Gaming Fund.

16

* * *

17

(c)  Local law enforcement grants.--Annually, the sum of

18

[$5,000,000] $3,000,000 shall be transferred to the board for

19

the purpose of issuing grants to local law enforcement agencies

20

to enforce and prevent [the unlawful operation of slot machines] 

21

all forms of unlawful gambling in this Commonwealth. For

22

purposes of this subsection, the term "local law enforcement

23

agency" shall include Pennsylvania State Police activities in a

24

municipality which does not have a municipal police department

25

for activities in that municipality.

26

* * *

27

§ 1512.  Financial and employment interests.

28

* * *

29

(a.5)  State Ethics Commission.--The State Ethics Commission

30

shall publish a list of all State, county, municipal and other

- 46 -

 


1

government positions that meet the definitions of "public

2

official" as defined under subsection (b) or "executive-level

3

public employee" [under subsection (b)]. The Office of

4

Administration shall assist the [Ethics Commission] commission 

5

in the development of the list, which shall be published in the

6

Pennsylvania Bulletin biennially and on the board's website.

7

Upon request, each public official shall have a duty to provide

8

the [Ethics Commission] commission with adequate information to

9

accurately develop and maintain the list. The [Ethics

10

Commission] commission may impose a civil penalty under 65

11

Pa.C.S. § 1109(f) (relating to penalties) upon any public

12

official or executive-level public employee who fails to

13

cooperate with the [Ethics Commission] commission under this

14

subsection. An individual who relies in good faith on the list

15

published by the commission shall not be subject to any penalty

16

for a violation of this section.

17

(b)  Definitions.--As used in this section, the following

18

words and phrases shall have the meanings given to them in this

19

subsection:

20

["Executive-level public employee."  The term shall include

21

the following:

22

(1)  Deputy Secretaries of the Commonwealth and the

23

Governor's Office executive staff.

24

(2)  An employee of the Executive Branch with

25

discretionary power which may affect or influence the outcome

26

of a State agency's action or decision and who is involved in

27

the development of regulations or policies relating to a

28

licensed entity or who is involved in other matters under

29

this part. The term shall include an employee with law

30

enforcement authority.

- 47 -

 


1

(3)  An employee of a county or municipality with

2

discretionary powers which may affect or influence the

3

outcome of the county's or municipality's action or decision

4

and who is involved in the development of law, regulation or

5

policy relating to a licensed entity or who is involved in

6

other matters under this part. The term shall include an

7

employee with law enforcement authority.

8

(4)  An employee of a department, agency, board,

9

commission, authority or other governmental body not included

10

in paragraph (1), (2) or (3) with discretionary power which

11

may affect or influence the outcome of the governmental

12

body's action or decision and who is involved in the

13

development of regulation or policy relating to a licensed

14

entity or who is involved in other matters under this part.

15

The term shall include an employee with law enforcement

16

authority.]

17

"Financial interest."  Owning or holding, or being deemed to

18

hold, debt or equity securities or other ownership interest or

19

profits interest. A financial interest shall not include any

20

debt or equity security, or other ownership interest or profits

21

interest, which is held or deemed to be held in any of the

22

following:

23

(1)  A blind trust over which the executive-level public

24

employee, public official, party officer or immediate family

25

member thereof may not exercise any managerial control or

26

receive income during the tenure of office and the period

27

under subsection (a). The provisions of this paragraph shall

28

apply only to blind trusts established prior to the effective

29

date of this paragraph.

30

(2)  Securities that are held in a pension plan, profit-

- 48 -

 


1

sharing plan, individual retirement account, tax-sheltered

2

annuity, a plan established pursuant to section 457 of the

3

Internal Revenue Code of 1986 (Public Law 99-514, 26 U.S.C. §

4

1 et seq.) or any successor provision deferred compensation

5

plan whether qualified or not qualified under the Internal

6

Revenue Code of 1986 or any successor provision or other

7

retirement plan that:

8

(i)  is not self-directed by the individual; and

9

(ii)  is advised by an independent investment adviser

10

who has sole authority to make investment decisions with

11

respect to contributions made by the individual to these

12

plans.

13

(3)  A tuition account plan organized and operated

14

pursuant to section 529 of the Internal Revenue Code of 1986

15

(Public Law 99-514, 26 U.S.C. § 529) that is not self-

16

directed by the individual.

17

(4)  A mutual fund where the interest owned by the mutual

18

fund in a licensed entity does not constitute a controlling

19

interest as defined in this part.

20

"Immediate family."  A spouse, minor child or unemancipated

21

child.

22

"Law enforcement authority."  The power to conduct

23

investigations of or to make arrests for criminal offenses.

24

"Party officer."  A member of a national committee; a

25

chairman, vice chairman, secretary, treasurer or counsel of a

26

State committee or member of the executive committee of a State

27

committee; a county chairman, vice chairman, counsel, secretary

28

or treasurer of a county committee in which a licensed facility

29

is located; or a city chairman, vice chairman, counsel,

30

secretary or treasurer of a city committee of a city in which a

- 49 -

 


1

licensed facility is located.

2

"Public official."  The term shall include the following:

3

(1)  The Governor, Lieutenant Governor, a member of the

4

Governor's cabinet, Treasurer, Auditor General and Attorney

5

General of the Commonwealth.

6

(2)  A member of the Senate or House of Representatives

7

of the Commonwealth.

8

(3)  An individual elected or appointed to any office of

9

a county or municipality that directly receives a

10

distribution of revenue under this part.

11

(4)  An individual elected or appointed to a department,

12

agency, board, commission, authority or other governmental

13

body not included in paragraph (1), (2) or (3) that directly

14

receives a distribution of revenue under this part.

15

(5)  An individual elected or appointed to a department,

16

agency, board, commission, authority, county, municipality or

17

other governmental body not included in paragraph (1), (2) or

18

(3) with discretionary power which may influence or affect

19

the outcome of an action or decision and who is involved in

20

the development of regulation or policy relating to a

21

licensed entity or who is involved in other matters under

22

this part.

23

The term does not include a member of a school board or an

24

individual who held an uncompensated office with a governmental

25

body prior to January 1, 2006, and who no longer holds the

26

office as of January 1, 2006. The term includes a member of an

27

advisory board or commission which makes recommendations

28

relating to a licensed facility.

29

Section 14.  Title 4 is amended by adding a section to read:

30

§ 1516.1.  Prosecutorial and adjudicatory functions.

- 50 -

 


1

The board shall adopt regulations and procedures necessary to

2

ensure that the Bureau of Investigations and Enforcement is a

3

distinct administrative entity and to prevent commingling of the

4

investigatory and prosecutorial functions of the Bureau of

5

Investigations and Enforcement under section 1517 (relating to

6

investigations and enforcement) and the adjudicatory functions

7

of the board.

8

Section 15.  Section 1517(a.1)(6) of Title 4 is amended,

9

subsection (a.2)(1) is amended by adding a subparagraph

10

subparagraphs and subsection (c) is amended by adding a

11

paragraph to read:

12

§ 1517.  Investigations and enforcement.

13

* * *

14

(a.1)  Powers and duties of bureau.--The Bureau of

15

Investigations and Enforcement shall have the following powers

16

and duties:

17

* * *

18

(6)  Conduct [audits] reviews of a licensed entity as

19

necessary to ensure compliance with this part. [An audit] A

20

review may include the review of accounting, administrative

21

and financial records, management control systems, procedures

22

and other records utilized by a licensed entity.

23

* * *

24

(a.2)  Office of Enforcement Counsel.--

25

(1)  There is established within the bureau an Office of

26

Enforcement Counsel which shall act as the prosecutor in all

27

noncriminal enforcement actions initiated by the bureau under

28

this part and shall have the following powers and duties:

29

* * *

30

(iv)  Petition the board for the appointment of a

- 51 -

 


1

trustee under section 1332 (relating to appointment of

2

trustee).

3

(v)  Notwithstanding 42 Pa.C.S. § 5947 (relating to

4

immunity of witnesses), the Commonwealth Court may grant

5

an immunity order, in the course of an investigation or

6

hearing conducted under this part, a person refuses to

7

answer a question or to produce evidence on the grounds

8

that the answer or evidence will expose the person to

9

criminal prosecution. The chief enforcement counsel of

10

the bureau may petition the Commonwealth Court for a

11

grant of immunity that includes the specific question to

12

be posed or information or evidence being sought from the

13

person as follows:

14

(A)  A copy of the petition shall be provided to

15

the Attorney General and the district attorney of the

16

person's county of residence who may object to the

17

petition.

18

(B)  The court shall hold an in camera proceeding

19

with the person to hear the evidence that will be

20

offered if the order to produce evidence is granted.

21

(C)  The court may issue an order to compel the

22

person to answer or produce evidence with immunity

23

if:

24

(I)  the testimony or other information from

25

a witness may be necessary to the public

26

interest; and

27

(II)  a witness has refused or is likely to

28

refuse to testify or provide other information on

29

the basis of his privilege against self-

30

incrimination.

- 52 -

 


1

(D)  The court shall grant or deny the request

2

for immunity within 45 days of the filing of the

3

request.

4

(E)  If the person who is the subject of the

5

immunity order provides the answer or evidence, the

6

person shall be immune from criminal prosecution

7

based on the answer or evidence that was the subject

8

of the immunity order.

9

(F)  The person may be prosecuted for perjury

10

committed in the answer or production of evidence or

11

held in contempt for failing to give an answer or

12

produce evidence in accordance with the order. The

13

answer or evidence shall be admissible against the

14

person only in a criminal investigation, or a trial

15

or other proceeding for perjury or contempt.

16

(G)  Immunity under this paragraph shall not

17

preclude the use of any other remedy or sanction

18

authorized by law.

19

* * *

20

(c)  Powers and duties of the Pennsylvania State Police.--The

21

Pennsylvania State Police shall have the following powers and

22

duties:

23

* * *

24

(14)  By March 1 of each year, the Commissioner of the

25

Pennsylvania State Police shall submit a report to the

26

Appropriations Committee of the Senate, the Community,

27

Economic and Recreational Development Committee of the

28

Senate, the Appropriations Committee of the House of

29

Representatives and the Gaming Oversight Committee of the

30

House of Representatives. The report shall summarize law

- 53 -

 


1

enforcement activities at each licensed facility during the

2

previous calendar year and shall include all of the

3

following:

4

(i)  The number of arrests at each licensed facility.

5

(ii)  A list of specific offenses charged for each

6

offense.

7

(iii)  The number of criminal prosecutions resulting

8

from arrests.

9

(iv)  The number of convictions resulting from

10

prosecutions.

11

(v)  The number of Pennsylvania State Police troopers

12

assigned to each licensed facility and to the gaming unit

13

at the Pennsylvania State Police headquarters.

14

(vi)  The number and nature of disciplinary actions

15

taken and complaints made against Pennsylvania State

16

Police troopers in a licensed facility.

17

(vii)  The closest local police station, Pennsylvania

18

State Police station and regional Pennsylvania State

19

Police headquarters to each licensed facility.

20

* * *

21

Section 16.  Section 1517.2 of Title 4 is amended to read:

22

§ 1517.2.  Conduct of [public officials and] board employees.

23

(a)  [Ex parte discussion prohibited.--An attorney

24

representing the bureau or the Office of Enforcement Counsel, or

25

an employee of the bureau or office involved in the hearing

26

process, shall not discuss the case ex parte with a hearing

27

officer, chief counsel or member] (Reserved).

28

(b)  [Other prohibitions.--A hearing officer, the chief

29

counsel or a member shall not discuss or exercise any

30

supervisory responsibility over any employee with respect to an

- 54 -

 


1

enforcement hearing with which the employee is involved] 

2

(Reserved).

3

(c)  Disqualification.--If it becomes necessary for the chief

4

counsel or member to become involved on behalf of the board in

5

any enforcement proceeding, the chief counsel or member shall be

6

prohibited from participating in the adjudication of that matter

7

and shall designate appropriate individuals to exercise

8

adjudicatory functions.

9

Section 17.  The amendment of 4 Pa.C.S. § 1213 shall not

10

apply to any of the following:

11

(1)  An application submitted before the effective date

12

of this section.

13

(2)  Any license or permit issued prior to the effective

14

date of this section.

15

(3)  The renewal of any license or permit issued prior to

16

the effective date of this section.

17

Section 18.  This act shall take effect in 60 days.

18

Section 1.  Section 1102(11) of Title 4 of the Pennsylvania

<--

19

Consolidated Statutes is amended and the section is amended by

20

adding paragraphs to read:

21

§ 1102.  Legislative intent.

22

The General Assembly recognizes the following public policy

23

purposes and declares that the following objectives of the

24

Commonwealth are to be served by this part:

25

* * *

26

(2.1)  The legalization of table games as authorized in

27

this part is intended to supplement slot machine gaming by

28

increasing revenues to the Commonwealth and providing new

29

employment opportunities by creating skilled jobs for

30

individuals related to the conduct of table games at licensed

- 55 -

 


1

facilities in this Commonwealth.

2

* * *

3

(10.1)  The General Assembly has a compelling interest in

4

protecting the integrity of both the electoral process and

5

the legislative process by preventing corruption and the

6

appearance of corruption which may arise through permitting

7

campaign contributions by the gaming industry.

8

(11)  It is necessary to maintain the integrity of the

9

regulatory control and legislative oversight over the

10

operation of slot machines and table games in this

11

Commonwealth; to prevent the actual or appearance of

12

corruption that may result from [large] campaign

13

contributions; ensure the bipartisan administration of this

14

part; and avoid actions that may erode public confidence in

15

the system of representative government.

16

(11.1)  Completely banning campaign contributions by

17

certain individuals and entities subject to this act is

18

necessary to prevent corruption, or the appearance of

19

corruption, that may arise when politics and gaming are

20

intermingled.

21

(12)  It is the intent of the General Assembly to

22

authorize the operation of slot machines and table games

23

under a single slot machine license issued to a slot machine

24

licensee under this part.

25

Section 2.  The definitions of "associated equipment,"

26

"cheat," "conduct of gaming," "conviction," "gaming employee,"

27

"key employee," "licensed facility," "manufacturer,"

28

"manufacturer license," "slot machine," "supplier" and "supplier

29

license" in section 1103 of Title 4 are amended and the section

30

is amended by adding definitions to read:

- 56 -

 


1

§ 1103.  Definitions.

2

The following words and phrases when used in this part shall

3

have the meanings given to them in this section unless the

4

context clearly indicates otherwise:

5

* * *

6

"Associated equipment."  Any equipment or mechanical,

7

electromechanical or electronic contrivance, component or

8

machine used in connection with [gaming] slot machines or table 

9

games, including linking devices which connect to progressive

10

slot machines or slot machines, replacement parts, equipment

11

which affects the proper reporting and counting of gross

12

terminal revenue and gross table game revenue, computerized

13

systems for controlling and monitoring slot machines or table

14

games, including, but not limited to, the central control

15

computer to which all slot machines communicate and devices for

16

weighing or counting money.

17

* * *

18

"Banking game."  Any table game in which players compete

19

against a certificate holder rather than against one another.

20

* * *

21

"Cash."  United States currency and coin.

22

"Cash equivalent."  An asset that is readily convertible to 

23

cash, including, but not limited to, any of the following:

24

(1)  Chips, tokens or other representations of value.

25

(2)  Travelers checks.

26

(3)  Foreign currency and coin.

27

(4)  Certified checks, cashier's checks and money orders.

28

(5)  Personal checks or drafts.

29

(6)  A negotiable instrument applied against credit

30

extended by a certificate holder, a recognized credit card

- 57 -

 


1

company or a financial institution.

2

(7)  Any other instrument that the Pennsylvania Gaming 

3

Control Board deems a cash equivalent. Other than recognized 

4

credit cards or credit extended by a certificate holder, all

5

instruments that constitute a cash equivalent shall be made

6

payable to the slot machine licensee, to the bearer or to

7

cash. An instrument made payable to a third party shall not

8

be considered a cash equivalent and shall be prohibited.

9

* * *

10

"Certificate holder."  A slot machine licensee that holds a

11

table games operation certificate from the Pennsylvania Gaming

12

Control Board in accordance with Chapter 13A (relating to table

13

games).

14

"Cheat."  To [alter without authorization] defraud or steal

15

from any patron, slot machine licensee or the Commonwealth,

16

including causing, aiding, abetting or conspiring with another

17

person to do so. The term shall also mean to unlawfully alter 

18

the elements of chance, skill, method of selection or criteria

19

which determine:

20

(1)  The result of a slot machine game or table game.

21

(2)  The amount or frequency of payment in a slot machine

22

game or table game.

23

(3)  The value of a wagering instrument.

24

(4)  The value of a wagering credit.

25

The term does not include altering a slot machine, table game

26

device or associated equipment for [required] maintenance [and]

27

or repair with the approval of a slot machine licensee.

28

"Cheating or thieving device."  A device used or possessed

29

with the intent to use, on or during the play of any slot

30

machine or table game to cheat or steal. The term shall also

- 58 -

 


1

include any device used to alter slot machines or table game

2

devices without the approval of a slot machine licensee.

3

"Chip."  A representation of value, including plaques, issued

4

by and redeemable with the issuing certificate holder for use in

5

playing a table game at the certificate holder's licensed

6

facility.

7

* * *

8

"Conduct of gaming."  The licensed placement and operation of

9

games of skill or chance under this part, as authorized and

10

approved by the Pennsylvania Gaming Control Board at a licensed

11

facility.

12

"Contest."  A table game competition among players for a

13

prize, whether or not the prize is a specified amount of money

14

or players are required to pay consideration to participate in

15

the competition.

16

* * *

17

"Conviction."  A finding of guilt or a plea of guilty or nolo

18

contendere, whether or not a judgment of sentence has been

19

imposed as determined by the law of the jurisdiction in which

20

the prosecution was held. The term does not include a conviction

21

that has been expunged or overturned or for which an individual

22

has been pardoned or had an order of Accelerated Rehabilitative

23

Disposition entered.

24

* * *

25

"Count room."  The secured room at a licensed facility

26

designated for counting, wrapping and recording a slot machine

27

licensee's slot machine or table game receipts, or both.

28

"Counterfeit chips."  Any chip or similar object not issued

29

by a certificate holder for use in playing a table game at the

30

certificate holder's licensed facility.

- 59 -

 


1

* * *

2

"Electronic table game."  A table game which, as determined

3

by the Pennsylvania Gaming Control Board, is a mechanical,

4

electrical or computerized contrivance, terminal, machine or

5

other device approved by the Pennsylvania Gaming Control Board

6

which, upon insertion of a coin, bill, ticket, token or similar

7

object therein or upon payment of any consideration whatsoever,

8

including the use of any electronic payment system, is playable

9

or operable without either the required assistance of or

10

required interaction with a gaming employee. The term does not

11

include a slot machine.

12

"Executive-level public employee."  The term shall include

13

the following:

14

(1)  Deputy Secretaries of the Commonwealth and the

15

Governor's Office executive staff.

16

(2)  An employee of the executive branch with

17

discretionary power which may affect or influence the outcome

18

of a State agency's action or decision and who is involved in

19

the development of regulations or policies relating to a

20

licensed entity or who is involved in other matters under

21

this part. The term shall include an employee with law

22

enforcement authority.

23

(3)  An employee of a county or municipality with

24

discretionary powers which may affect or influence the

25

outcome of the county's or municipality's action or decision

26

and who is involved in the development of law, regulation or

27

policy relating to a licensed entity or who is involved in

28

other matters under this part. The term shall include an

29

employee with law enforcement authority.

30

(4)  An employee of a department, agency, board,

- 60 -

 


1

commission, authority or other governmental body not included

2

in paragraph (1), (2) or (3) with discretionary power which

3

may affect or influence the outcome of the governmental

4

body's action or decision and who is involved in the

5

development of regulation or policy relating to a licensed

6

entity or who is involved in other matters under this part.

7

The term shall include an employee with law enforcement

8

authority.

9

* * *

10

"Gaming employee."  Any employee of a slot machine licensee,

11

including, but not limited to:

12

(1)  Cashiers.

13

(2)  Change personnel.

14

(3)  [Counting] Count room personnel.

15

(4)  Slot attendants.

16

(5)  Hosts or other persons authorized to extend

17

complimentary services.

18

(6)  Machine mechanics [or], computer machine technicians

19

or table game device technicians.

20

(7)  Security personnel.

21

(8)  Surveillance personnel.

22

(9)  Supervisors and managers.

23

(10)  Boxmen.

24

(11)  Dealers or croupiers.

25

(12)  Floormen.

26

The term includes employees of a person holding a supplier's

27

license whose duties are directly involved with the repair or

28

distribution of slot machines, table game devices and associated

29

equipment sold or provided to [the] a licensed facility within

30

this Commonwealth as determined by the Pennsylvania Gaming

- 61 -

 


1

Control Board. The term does not include bartenders, cocktail

2

servers or other persons engaged solely in preparing or serving

3

food or beverages, clerical or secretarial personnel, parking

4

attendants, janitorial, stage, sound and light technicians and

5

other nongaming personnel as determined by the board.

6

"Gaming junket."  An arrangement made by a gaming junket

7

representative for an individual who is all of the following:

8

(1)  Selected or approved for participation in the

9

arrangement based on the individual's ability to satisfy

10

specific financial qualifications.

11

(2)  Likely to participate in gaming and to patronize a

12

licensed facility for the purpose of gaming.

13

(3)  Receives as consideration for participation in the

14

arrangement part or all of the costs of transportation, food,

15

lodging or entertainment which are directly or indirectly

16

paid by a slot machine licensee or an agent or an employee of

17

a slot machine licensee.

18

"Gaming junket enterprise."  A person, other than a slot

19

machine licensee, who employs or otherwise engages the services

20

of a gaming junket representative to arrange gaming junkets to a

21

license facility, regardless of whether the activities of the

22

gaming junket enterprise occur within this Commonwealth.

23

"Gaming junket representative."  An individual who is not an

24

employee of a slot machine licensee who arranges and negotiates

25

the terms of a gaming junket or selects individuals to

26

participate in a gaming junket to a licensed facility,

27

regardless of whether the activities of the gaming junket

28

enterprise occur within this Commonwealth.

29

"Gaming school."  Any educational institution which is

30

approved by the the Department of Education as an accredited

- 62 -

 


1

college or university, community college, Pennsylvania private

2

licensed school or its equivalent and which is approved by the

3

Pennsylvania Gaming Control Board in consultation with the

4

Department of Education to provide education and training

5

related to employment opportunities associated with slot

6

machines or table games, including slot machine, table game 

7

device and associated equipment maintenance and repair.

8

"Gross table game revenue."  The total of:

9

(1)  Cash or cash equivalents received in the playing of

10

a table game minus the total of:

11

(i)  Cash or cash equivalents paid out to patrons as

12

a result of playing a table game.

13

(ii)  Cash paid to purchase annuities to fund prizes

14

payable to patrons over a period of time as a result of

15

playing a table game.

16

(iii)  The actual cost paid by the certificate holder

17

for any personal property distributed to a patron as a

18

result of playing a table game. This does not include

19

travel expenses, food, refreshments, lodging or services.

20

(2)  All table game contest or tournament fees. Table

21

game contest or tournament fees shall be calculated as all

22

fees or payments, including entry fees, buy-ins, re-buys and

23

administrative fees, imposed by a certificate holder to

24

participate in a table game contest or tournament less cash

25

or actual cost paid by a certificate holder for prizes

26

awarded to tournament or contest winners.

27

(3)  The total amount of the rake collected by a

28

certificate holder each day.

29

The term does not include counterfeit money or chips; coins or

30

currency of other countries received in the playing of a table

- 63 -

 


1

game, except to the extent that they are readily convertible to

2

United States currency; cash taken in a fraudulent act

3

perpetrated against a certificate holder for which the

4

certificate holder is not reimbursed.

5

* * *

6

"Hotel."  One or more buildings owned or operated by a

7

certificate holder which is attached to, physically connected to

8

or adjacent to the certificate holder's licensed facility at

9

which the public may obtain sleeping rooms and is located on the

10

same parcel of land as the licensed facility.

11

* * *

12

"Key employee."  Any individual who is employed in a director

13

or department head capacity and who is empowered to make

14

discretionary decisions that regulate slot machine or table game

15

operations, including the general manager and assistant manager

16

of the licensed facility, director of slot operations, director

17

of table games, pit supervisors, shift supervisors, credit

18

supervisors, cashier supervisors, table game managers and

19

assistant managers, director of cage and/or credit operations,

20

director of surveillance, director of marketing, director of

21

management information systems, director of security,

22

comptroller and any employee who supervises the operations of

23

these departments or to whom these department directors or

24

department heads report and such other positions which the

25

Pennsylvania Gaming Control Board shall determine based on

26

detailed analyses of job descriptions as provided in the

27

internal controls of the licensee as approved by the

28

Pennsylvania Gaming Control Board. All other gaming employees

29

unless otherwise designated by the Pennsylvania Gaming Control

30

Board shall be classified as non-key employees.

- 64 -

 


1

* * *

2

"Licensed entity representative."  A person acting on behalf

3

of or authorized to represent the interest of any applicant,

4

licensee or permittee, including an attorney, agent or lobbyist,

5

regarding any matter which may reasonably be expected to come

6

before the board.

7

"Licensed facility."  The physical land-based location at

8

which a licensed gaming entity is authorized to place and

9

operate slot machines and, if authorized by the Pennsylvania

10

Gaming Control Board under Chapter 13A (relating to table

11

games), to conduct table games. The term includes any area of a

12

licensed racetrack previously authorized pursuant to section

13

1207(17) (relating to regulatory authority of board) to operate

14

slot machines and any area of a hotel which the Pennsylvania

15

Gaming Control Board determines is suitable to conduct table

16

games.

17

* * *

18

"Manufacturer."  A person who manufactures, builds, rebuilds,

19

fabricates, assembles, produces, programs, designs or otherwise

20

makes modifications to any slot machine, table game device or

21

associated equipment for use or play of slot machines or table 

22

games in this Commonwealth for gaming purposes.

23

"Manufacturer license."  A license issued by the Pennsylvania

24

Gaming Control Board authorizing a manufacturer to manufacture

25

or produce slot machines, table game devices or associated

26

equipment for use in this Commonwealth for gaming purposes.

27

* * *

28

"Municipal authority."  A body politic and corporate created

29

under the former act of June 28, 1935 (P.L.463, No.191), known

30

as the Municipality Authorities Act of 1935, the former act of

- 65 -

 


1

May 2, 1995 (P.L.382, No.164), known as the Municipality

2

Authorities Act of 1945 or the act of July 29, 1953 (P.L.1034,

3

No.270), known as the Public Auditorium Authorities Law.

4

* * *

5

"Nonbanking game."  Any table game in which players compete

6

against one another and in which the certificate holder collects

7

a rake.

8

"Nonelectronic table game."  Any table game that, as

9

determined by the Pennsylvania Gaming Control Board, is not an

10

electronic table game.

11

* * *

12

"Party."  The Pennsylvania Gaming Control Board, the Bureau

13

of Investigations and Enforcement of the Pennsylvania Gaming

14

Control Board or any applicant, licensee, permittee, registrant

15

or other person appearing of record in any proceeding before the

16

board or in any proceeding for judicial review of any action,

17

decision or order of the board.

18

* * *

19

"Rake."  A set fee or percentage assessed by a certificate

20

holder for providing the services of a dealer, table or location

21

for playing any nonbanking game.

22

* * *

23

"Slot machine."  Any mechanical [or], electrical or

24

computerized contrivance, terminal, machine or other device

25

approved by the Pennsylvania Gaming Control Board which, upon

26

insertion of a coin, bill, ticket, token or similar object

27

therein or upon payment of any consideration whatsoever,

28

including the use of any electronic payment system except a

29

credit card or debit card, is available to play or operate, the

30

play or operation of which, whether by reason of skill or

- 66 -

 


1

application of the element of chance or both, may deliver or

2

entitle the person or persons playing or operating the

3

contrivance, terminal, machine or other device to receive cash,

4

billets, tickets, tokens or electronic credits to be exchanged

5

for cash or to receive merchandise or anything of value

6

whatsoever, whether the payoff is made automatically from the

7

machine or manually. A slot machine:

8

(1)  May utilize spinning reels or video displays or

9

both.

10

(2)  May or may not dispense coins, tickets or tokens to

11

winning patrons.

12

(3)  May use an electronic credit system for receiving

13

wagers and making payouts.

14

The term shall include associated equipment necessary to conduct

15

the operation of the contrivance, terminal, machine or other

16

device. The term does not include an electronic table game.

17

* * *

18

"Supplier."  A person that sells, leases, offers or otherwise

19

provides, distributes or services any slot machine, table game

20

device or associated equipment for use or play of slot machines

21

or table games in this Commonwealth.

22

"Supplier license."  A license issued by the Pennsylvania

23

Gaming Control Board authorizing a supplier to provide products

24

or services related to slot machines, table games devices or

25

associated equipment to slot machine licensees.

26

* * *

27

"Suspicious transaction."  The acceptance or redeeming of

28

cash or a cash equivalent involving or aggregating $5,000 if the

29

slot machine licensee or person knows or has reason to believe

30

the transaction:

- 67 -

 


1

(1)  involves funds derived from illegal activities or is

2

intended or conducted in order to conceal or disguise funds

3

or assets derived from illegal activities;

4

(2)  is part of a plan to violate or evade any law or

5

regulation or to avoid any transaction reporting requirement

6

under the law or regulations of this Commonwealth or the

7

United States, including a plan to structure a series of

8

transactions to avoid any transaction reporting requirement

9

under the laws or regulations of this Commonwealth or the

10

United States; or

11

(3)  has no lawful business or other apparent lawful

12

purpose or is not the sort of transaction in which a person

13

would normally be expected to engage and the slot machine

14

licensee or person knows of no reasonable explanation for the

15

transaction after examining the available facts, including

16

the background and possible purpose of the transaction.

17

"Table game."  Any banking, nonbanking or percentage game

18

played which utilizes a table game device for cash, a cash

19

equivalent or any representation of value. The term includes

20

roulette, baccarat, blackjack, poker, craps, big six wheel, red

21

dog, pai gow, casino war and sic bo and any other banking,

22

nonbanking or percentage game approved by the Pennsylvania

23

Gaming Control Board. The term shall also include any game

24

authorized for use in a licensed facility that is used for

25

gaming contests or tournaments in which players compete against

26

one another. The term shall not include:

27

(1)  Lottery games of the Pennsylvania State Lottery as

28

authorized under the act of August 26, 1971 (P.L.351, No.91),

29

known as the State Lottery Law.

30

(2)  Bingo as authorized under the act of July 10, 1981

- 68 -

 


1

(P.L.214, No.67), known as the Bingo Law.

2

(3)  Pari-mutuel betting on the outcome of thoroughbred

3

or harness horse racing as authorized under the act of

4

December 17, 1981 (P.L.435, No.135), known as the Race Horse

5

Industry Reform Act.

6

(4)  Small games of chance as authorized under the act of

7

December 19, 1988 (P.L.1262, No.156), known as the Local

8

Option Small Games of Chance Act.

9

(5)  Slot machine gaming and progressive slot machine

10

gaming as defined and authorized under this part.

11

(6)  Keno.

12

"Table game device."  Includes gaming tables, cards, dice,

13

chips, shufflers, tiles, dominoes, wheels, drop boxes or any

14

mechanical, electrical or computerized contrivance, terminal,

15

machine or other device, apparatus, equipment or supplies

16

approved by the Pennsylvania Gaming Control Board and used to

17

conduct a table game.

18

"Table game operation certificate."  A certificate from the

19

Pennsylvania Gaming Control Board that authorizes a slot machine

20

licensee to conduct table games in accordance with this part.

21

"Tournament."  An organized series of table game contests

22

approved by the Pennsylvania Gaming Control Board.

23

"Trustee."  A person appointed by the Pennsylvania Gaming

24

Control Board to manage and control the operations of a licensed

25

facility to ensure compliance with this part and who has the

26

fiduciary responsibility to make decisions for the benefit of

27

the licensed gaming entity and the Commonwealth.

28

* * *

29

Section 3.  Section 1201(f)(3), (h)(7.1), (10), (11), (13),

30

(14) and (15) and (k) of Title 4 are amended, subsection (h) is

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1

amended by adding paragraphs and the section is amended by

2

adding a subsection to read:

3

§ 1201.  Pennsylvania Gaming Control Board established.

4

* * *

5

(f)  Qualified majority vote.--

6

* * *

7

(3)  Notwithstanding any other provision of this part or

8

65 Pa.C.S. § 1103(j) (relating to restricted activities), a

9

member shall disclose the nature of his disqualifying

10

interest, disqualify himself and abstain from voting in a

11

proceeding under this part in which his objectivity,

12

impartiality, integrity or independence of judgment may be

13

reasonably questioned, as provided in subsection (h)(6) or

14

section 1202.1(c)(3) (relating to code of conduct). If a

15

legislative appointee has disqualified himself, the qualified

16

majority shall consist of all of the remaining legislative

17

appointees and at least two gubernatorial appointees.

18

* * *

19

(h)  Qualifications and restrictions.--

20

* * *

21

(7.1)  Prior to being sworn as a member, an appointee and

22

his immediate family shall divest any financial interest in

23

any applicant, licensed facility or licensed entity and in an

24

affiliate, intermediary, subsidiary or holding company

25

thereof owned or held by the appointee or known to be held by

26

the appointee's immediate family. For the duration of the

27

member's term and for [one year] two years thereafter, the

28

member and the member's immediate family may not acquire a

29

financial interest in any applicant, licensed facility or

30

licensed entity or in an affiliate, intermediary, subsidiary

- 70 -

 


1

or holding company thereof. For purposes of this paragraph,

2

the term "immediate family" shall mean spouse and any minor

3

or unemancipated child.

4

* * *

5

(10)  No former member may appear before the board in any

6

hearing or proceeding or participate in any other activity on

7

behalf of any applicant, licensed entity, or an affiliate,

8

intermediary, subsidiary or holding company thereof, or any

9

other licensee or permittee for a period of two years from

10

the termination of term of office.

11

(11)  No member, employee or independent contractor of

12

the board shall accept a complimentary service, wager or be

13

paid any prize from any wager at any licensed facility within

14

this Commonwealth or at any other facility outside this

15

Commonwealth which is owned or operated by a licensed gaming

16

entity or any of its affiliates, intermediaries, subsidiaries

17

or holding companies thereof for the duration of their term

18

of office, employment or contract with the board and for a

19

period of [one year] two years from the termination of term

20

of office, employment or contract with the board. The

21

provisions of this paragraph prohibiting wagering during the

22

term of employment shall not apply to employees or

23

independent contractors of the board who utilize slot

24

machines or table game devices for testing purposes or to

25

verify the performance of a machine or table game as part of

26

an enforcement investigation.

27

* * *

28

(13)  No employee of the board [or individual employed by

29

an independent contractor of the board] whose duties

30

substantially involve licensing[,] or enforcement [or], the

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1

development [or adoption] of laws, or the development or

2

adoption of regulations or policy or who has other

3

discretionary authority which may affect the outcome of an

4

action or decision under this part, including the executive

5

director, bureau directors and attorneys, shall do any of the

6

following:

7

(i)  [accept] Accept employment with an applicant or

8

licensed entity, or an affiliate, intermediary,

9

subsidiary or holding company thereof, for a period of

10

[one year] two years after the termination of the

11

employment relating to the conduct of gaming [or contract

12

with the board; or].

13

(ii)  [appear] Appear before the board in any hearing

14

or proceeding or participate in any other activity on

15

behalf of any applicant, licensee, permittee or licensed

16

entity, or an affiliate, intermediary, subsidiary or

17

holding company thereof, for a period of two years after

18

termination of the employment [or contract with the

19

board].

20

(iii)  As a condition of employment, an employee

21

subject to this paragraph shall sign an affidavit that

22

the employee will not accept employment with or be

23

retained by any applicant, licensed entity or an

24

affiliate, intermediary, subsidiary or holding company

25

thereof for a period of two years from the termination of

26

employment. An applicant or licensed entity or an

27

affiliate, intermediary, subsidiary or holding company

28

thereof shall not employ or retain an individual who

29

signed an affidavit required by this subparagraph. An

30

applicant or licensed entity or an affiliate,

- 72 -

 


1

intermediary, subsidiary or holding company that

2

knowingly employs or retains an individual in violation

3

of this subparagraph shall be subject to a penalty under

4

section 1518(c) (relating to prohibited acts; penalties).

5

(13.1)  Nothing shall prevent a current or former

6

employee of the board from appearing in any proceeding as a

7

witness where the employee is called to testify concerning

8

any fact or information obtained while employed with the

9

board or related to the performance of duties while so

10

employed.

11

(13.2)  No independent contractor or individual employed

12

by an independent contractor of the board whose duties

13

substantially involve consultation relating to licensing,

14

enforcement or the development or adoption of regulations or

15

policy under this part shall:

16

(i)  Accept employment with or be retained by an

17

applicant or a licensed entity or an affiliate,

18

intermediary, subsidiary or holding company thereof for a

19

period of one year after the termination of the contract

20

with the board.

21

(ii)  Appear before the board in any hearing or

22

proceeding or participate in any other activity on behalf

23

of an applicant, licensee, permittee or licensed entity

24

or an affiliate, intermediary, subsidiary or holding

25

company of an applicant, licensee, permittee or licensed

26

entity for a period of two years after termination of the

27

contract with the board. Nothing shall prevent a current

28

or former independent contractor or employee of an

29

independent contractor of the board from appearing in any

30

proceeding as a witness where the independent contractor

- 73 -

 


1

or employee of the independent contractor is being called

2

to testify concerning any fact or information obtained

3

while contracting with the board or related to the

4

performance of the contract.

5

(iii)  As a condition of a contract, an independent

6

contractor or individual employed by an independent

7

contractor of the board under this paragraph shall sign

8

an affidavit to not accept employment with or be retained

9

by any applicant, licensed entity or an affiliate,

10

intermediary, subsidiary or holding company of an

11

applicant, licensed entity or affiliate for a period of

12

one year from the termination of employment. A licensed

13

entity or an affiliate, intermediary, subsidiary or

14

holding company of an applicant, licensed entity or

15

affiliate shall not employ or retain an individual who

16

signed an affidavit required by this subparagraph. A

17

licensed entity or an affiliate, intermediary, subsidiary

18

or holding company thereof that knowingly employs or

19

retains an individual in violation of this subparagraph

20

shall be subject to a penalty under section 1518(c).

21

(14)  Upon the written request of an employee of the

22

board, the executive branch of the Commonwealth or a

23

political subdivision or of the agency or political

24

subdivision employing an employee, the State Ethics

25

Commission shall determine whether the individual's duties

26

substantially involve the development [or adoption] of laws,

27

or the development or adoption of regulations or policy,

28

licensing or enforcement under this part or other

29

discretionary authority which may affect the outcome of an

30

action, proceeding or decision under this part and shall

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1

provide a written determination to the employee or the agency

2

or political subdivision employing the employee to include

3

any prohibition under this paragraph. An individual who

4

relies in good faith on a determination under this paragraph

5

shall not be subject to any penalty for an action taken,

6

provided that all material facts set forth in the request for

7

a determination are correct.

8

(15)  If a member[, employee or independent contractor]

9

of the board violates any provision of this section, the

10

appointing authority [or the board may, upon notice and

11

hearing,] may remove the person from the board[, withdraw the

12

appointment or]. A member removed under this paragraph shall

13

be prohibited from future appointment to the board and shall

14

be prohibited from applying for a license, permit or other

15

authorization and from becoming an independent contractor of

16

the board, or registering as a licensed entity representative

17

for a period of five years from the date of removal from the

18

board. If an employee or independent contractor of the board

19

violates any provision of this section, the board may, upon

20

notice and hearing, terminate the employment or contract, and

21

the person shall be ineligible for future [appointment,]

22

employment or [contract] contracting with the board and [for

23

approval of a license or permit under this part for a period

24

of two years thereafter] shall be prohibited from applying

25

for a license, permit or other authorization and from

26

becoming an independent contractor or registering as a

27

licensed entity representative for a period of five years

28

from the date of termination of the employment or contract.

29

* * *

30

(k)  Appointments.--[The appointing authorities] Following

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1

the initial appointment of members under subsection (b), the

2

appointing authority shall make [their initial] appointments

3

within 60 days of [the effective date of this part] a vacancy in

4

an office. No appointment shall be final until receipt by the

5

appointing authority of the required background investigation of

6

the appointee by the Pennsylvania State Police which shall be

7

completed within 30 days. No person who has been convicted in

8

any domestic or foreign jurisdiction of a felony, infamous crime

9

or gaming offense shall be appointed to the board.

10

* * *

11

(m.1)  Budgetary impasse.--If, in the event of a budgetary or

12

other fiscal crisis, the Governor orders the furlough of

13

Commonwealth employees or the closing of any Commonwealth

14

agency, the board and its employees and all employees of the

15

Department of Revenue, the Pennsylvania State Police and the

16

Office of Attorney General whose duties involve the regulation

17

and oversight of gaming under this part shall not be subject to

18

furlough but shall continue to perform their duties of

19

employment.

20

* * *

21

Section 3.1.  Section 1201.1(a)(1) of Title 4 is amended to

22

read:

23

§ 1201.1.  Applicability of other statutes.

24

(a)  General rule.--The following acts shall apply to the

25

board:

26

(1)  The act of [June 21, 1957 (P.L.390, No.212),

27

referred to] February 14, 2008 (P.L.6, No.3), known as the

28

Right-to-Know Law.

29

* * *

30

Section 4.  Section 1202(a)(1) and (b)(7), (20), (23) and

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1

(30) of Title 4 are amended and subsection (b) is amended by

2

adding paragraphs to read:

3

§ 1202.  General and specific powers.

4

(a)  General powers.--

5

(1)  The board shall have general and sole regulatory

6

authority over the conduct of gaming or related activities as

7

described in this part. The board shall ensure the integrity

8

of the acquisition and operation of slot machines, table

9

games, table game devices and associated equipment and shall

10

have sole regulatory authority over every aspect of the

11

authorization and operation of slot machines and table games.

12

* * *

13

(b)  Specific powers.--The board shall have the specific

14

power and duty:

15

* * *

16

(7)  To administer oaths, examine witnesses and issue

17

subpoenas compelling the attendance of witnesses or the

18

production of documents and records or other evidence[. The

19

provisions of this paragraph shall apply to designated

20

officers and employees.], or to designate officers or

21

employees to perform these duties.

22

* * *

23

(12.1)  To issue, approve, authorize, renew, revoke,

24

suspend, condition or deny issuance or renewal of a table

25

game operation certificate to a slot machine licensee in

26

accordance with Chapter 13A (relating to table games).

27

* * *

28

(20)  In addition to the power of the board regarding

29

license and permit applicants, to determine at its discretion

30

the suitability of any person who furnishes or seeks to

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1

furnish to a slot machine licensee directly or indirectly any

2

goods, services or property related to slot machines, table

3

games or associated equipment or through any arrangements

4

under which that person receives payment based directly or

5

indirectly on earnings, profits or receipts from the slot

6

machines, table games and associated equipment. The board may

7

require any such person to comply with the requirements of

8

this part and the regulations of the board and may prohibit

9

the person from furnishing the services or property.

10

* * *

11

(23)  The board shall not approve, issue or renew a

12

license, certificate or permit unless it is satisfied that

13

the applicant has demonstrated by clear and convincing

14

evidence that the applicant is a person of good character,

15

honesty and integrity and is a person whose prior activities,

16

criminal record, if any, reputation, habits and associations

17

do not pose a threat to the public interest or the effective

18

regulation and control of slot machine or table game 

19

operations or create or enhance the danger of unsuitable,

20

unfair or illegal practices, methods and activities in the

21

conduct of slot machine or table game operations or the

22

carrying on of the business and financial arrangements

23

incidental thereto.

24

* * *

25

(27.1)  To publish each January in the Pennsylvania

26

Bulletin and on the Pennsylvania Gaming Control Board's

27

Internet website a complete list of all slot machine

28

licensees who filed a petition seeking authorization to

29

conduct table games and the status of each petition or table

30

game operation certificate.

- 78 -

 


1

* * *

2

(30)  To promulgate rules and regulations necessary for

3

the administration and enforcement of this part, including

4

regulations in cooperation with the Pennsylvania Liquor

5

Control Board and regulations relating to the sale and

6

service of liquor and malt and brewed beverages by licensees.

7

[Except as provided in section 1203 (relating to temporary

8

regulations), regulations] Regulations shall be adopted

9

pursuant to the act of July 31, 1968 (P.L.769, No.240),

10

referred to as the Commonwealth Documents Law, and the act of

11

June 25, 1982 (P.L.633, No.181), known as the Regulatory

12

Review Act.

13

(31)  To collect and post information on its Internet

14

website with sufficient detail to inform the public of the

15

controlling interest or ownership interest of an applicant

16

for a slot machine license or a licensed gaming entity or

17

affiliate, intermediary, subsidiary or holding company

18

thereof. The posting shall include:

19

(i)  The names of all persons with a controlling

20

interest in a publicly traded domestic or foreign

21

corporation, partnership, limited liability company or

22

other legal entity.

23

(ii)  The names of all persons with an ownership

24

interest equal to or greater than 1% of a privately held

25

domestic or foreign corporation, partnership, limited

26

liability company or other legal entity.

27

(iii)  The name of a trustee entitled to cast the

28

vote of a person under subparagraph (i) or (ii).

29

(iv)  The names of all officers, directors,

30

principals and key employees of a licensed gaming entity.

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1

(32)  To appoint a trustee as prescribed in section 1332

2

(relating to appointment of trustee) to act on behalf of the

3

Commonwealth and the board to operate a licensed facility and

4

ensure compliance with this part.

5

(33)  To develop regulations, in consultation and

6

collaboration with the State Ethics Commission and the

7

Administrative Office of the Pennsylvania Courts, to govern

8

the postemployment limitations and restrictions of employees

9

of the board who are members of the Pennsylvania Bar and

10

whose duties with the board substantially involve the

11

practice of law.

12

(34)  To review detailed site plans identifying a

13

petitioner's proposed table game area within a licensed

14

facility or any proposed temporary facility to determine the

15

adequacy of the proposed internal and external security and

16

proposed surveillance measures.

17

Section 5.  Section 1202.1 of Title 4 is amended to read:

18

§ 1202.1.  Code of conduct.

19

(a)  Scope.--The board shall adopt a comprehensive code of

20

conduct prior to the consideration of any license, permit or

21

registration application. The code of conduct shall supplement

22

all other requirements under this part and 65 Pa.C.S. Pt. II

23

(relating to accountability) and shall provide guidelines

24

applicable to members, employees, independent contractors of the

25

board and the immediate [families] family members of the

26

members, employees and independent contractors of the board to

27

enable them to avoid any perceived or actual conflict of

28

interest and to promote public confidence in the integrity and

29

impartiality of the board. At a minimum, the code of conduct

30

adopted under this section shall include registration of

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1

licensed entity representatives under subsection (b) and the

2

restrictions under [subsection (c)] subsections (c) and (c.1).

3

(b)  Registration.--

4

(1)  A licensed entity representative shall register with

5

the board in a manner prescribed by the board, which shall

6

include the name, employer or firm, business address[,] and

7

business telephone number of both the licensed entity

8

representative and [the] any licensed entity or applicant for

9

licensed entity licensure being represented.

10

(2)  A licensed entity representative shall have an

11

[ongoing] affirmative duty to update its registration

12

information on an ongoing basis and failure to do so shall be

13

punishable by the board.

14

(3)  The [registration list] board shall maintain a

15

registration list which shall contain the information

16

required under paragraph (1) and which shall be available for

17

public inspection at the offices of the board and on the

18

board's Internet website.

19

(c)  Restrictions.--A member of the board shall:

20

(1)  Not engage in any ex parte communication with any

21

person.

22

(2)  Not accept any discount, gift, gratuity,

23

compensation, travel, lodging or other thing of value,

24

directly or indirectly, from any applicant, [licensee,]

25

licensed entity, including any affiliate, subsidiary,

26

intermediary or holding company thereof, permittee[,

27

registrant] or licensed entity representative thereof.

28

(3)  Disclose and [disqualify] recuse himself from any

29

hearing or other proceeding in which the member's

30

objectivity, impartiality, integrity or independence of

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1

judgment may be reasonably questioned due to the member's

2

relationship or association with a party connected to any

3

hearing or proceeding or a person appearing before the board.

4

(4)  Refrain from any financial or business dealing which

5

would tend to reflect adversely on the member's objectivity,

6

impartiality or independence of judgment.

7

(5)  Not hold or campaign for public office, hold an

8

office in any political party or political committee as

9

defined in section 1513(d)(relating to political influence),

10

contribute to or solicit contributions to a political

11

campaign, [party,] political party, political committee or

12

candidate, publicly endorse a candidate or actively

13

participate in a political campaign.

14

(6)  Not solicit funds for any charitable, educational,

15

religious, health, fraternal, civic or other nonprofit entity

16

from an applicant, licensed entity or affiliate, subsidiary,

17

intermediary or holding company of a licensed entity,

18

interested party, permittee or licensed entity

19

representative. A board member may serve as an officer,

20

employee or member of the governing body of a nonprofit

21

entity and may attend, make personal contributions to and

22

plan or preside over the entity's fundraising events. A board

23

member may permit his name to appear on the letterhead used

24

for fundraising events if the letterhead contains only the

25

board member's name and position with the nonprofit entity.

26

(7)  Not meet or engage in discussions with any

27

applicant, [person licensed under this part] licensed entity,

28

permittee, [or a] licensed entity representative, person who

29

provides goods, property or services to a slot machine

30

licensee or any other person or entity under the jurisdiction

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1

of the board unless the meeting or discussion occurs on the

2

business premises of the board and is recorded in a log

3

maintained for this purpose. The log shall be available for

4

public inspection during the regular business hours of the

5

board and shall be posted on the board's Internet website.

6

The log shall include the date and time of the meeting or

7

discussion, the names of the participants and a description

8

of the subject matter discussed. The provisions of this

9

paragraph shall not apply to meetings [of the board] to

10

consider matters requiring the physical inspection of the

11

equipment or premises of an applicant or a licensed entity at

12

[their] the location of the licensed facility.

13

(8)  Avoid impropriety and the appearance of impropriety

14

at all times and observe standards and conduct that promote

15

public confidence in the oversight of gaming.

16

(9)  Comply with any other laws, rules or regulations

17

relating to the conduct of a member.

18

(c.1)  Prohibitions.--

19

(1)  No member or attorney of the Office of Chief Counsel

20

advising the board on a particular licensing issue or

21

proceeding or employee whose duties relate to licensing and

22

who is advising the board on a particular licensing issue or

23

proceeding shall engage in any ex parte communication with

24

any person.

25

(2)  No attorney representing the bureau or the Office of

26

Enforcement Counsel or an applicant, licensee or permittee in

27

any proceeding shall engage in an ex parte communication with

28

a member, an attorney of the Office of Chief Counsel advising

29

the board on a proceeding or a hearing officer of the board.

30

(3)  No employee of the bureau or the Office of

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1

Enforcement Counsel who is involved in a proceeding shall

2

engage in an ex parte communication with a member, an

3

attorney of the Office of Chief Counsel who is advising the

4

board on the proceeding or a hearing officer of the board.

5

(c.2)  Procedures relating to ex parte communications.--

6

(1)  An ex parte communication received or engaged in by

7

a board member, employee or hearing officer shall be recorded

8

in a log maintained for this purpose. The log shall be

9

available for public inspection during the regular business

10

hours of the board and shall be posted on the board's

11

Internet website. The log shall include:

12

(i)  The name of the individual documenting the ex

13

parte communication.

14

(ii)  The date and time of the ex parte

15

communication.

16

(iii)  The names of all individuals involved in the

17

ex parte communication.

18

(iv)  A description of the subject matter discussed

19

and a summary of the substance of the ex parte

20

communication.

21

(2)  In addition to documenting an ex parte communication

22

under paragraph (1), notification of the substance of the

23

communication and an opportunity to respond shall be provided

24

to all persons directly affected by the anticipated vote or

25

action of the board related to the ex parte communication.

26

(3)  (i)  A board member, employee or hearing officer who

27

engaged in or received an ex parte communication shall

28

recuse himself from any hearing or other proceeding

29

related to the ex parte communication if the context and

30

substance of the ex parte communication creates

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1

substantial reasonable doubt as to the individual's

2

ability to act objectively, independently or impartially.

3

(ii)  A board member, employee or hearing officer who

4

engaged in or received an ex parte communication who

5

elects not to recuse himself from a hearing or other

6

proceeding shall state his reasons for not recusing

7

himself on the record prior to the commencement of the

8

hearing or proceeding.

9

(iii)  If a legislative appointee recuses himself

10

from any hearing or other proceeding under this section,

11

any qualified majority vote required under this part

12

shall consist of all of the remaining legislative

13

appointees and at least two gubernatorial appointees.

14

(iv)  Failure of a hearing officer or employee who

15

engaged in or received an ex parte communication to

16

recuse himself when required under subparagraph (i) from

17

a hearing or other proceeding shall be grounds for appeal

18

to the board.

19

(v)  Failure of a board member who engaged in or

20

received an ex parte communication to recuse himself from

21

a hearing or other proceeding when required under

22

subparagraph (i) shall be grounds for appeal to a court

23

of competent jurisdiction if the board action being

24

appealed could not have occurred without the

25

participation of the board member.

26

(d)  Ex officio members.--The restrictions under subsection

27

(c)(5) shall not apply to ex officio members.

28

(e)  Definitions.--As used in this section, the following

29

words and phrases shall have the meanings given to them in this

30

subsection:

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1

"Ex parte communication."  An off-the-record communication

2

engaged in or received by a member [or], employee or hearing

3

officer of the board regarding the merits of or any fact in

4

issue relating to a pending matter before the board or which may

5

reasonably be expected to come before the board in a contested

6

on-the-record proceeding. The term shall not include off-the-

7

record communications by or between a member [or], employee or

8

hearing officer of the board, Department of Revenue,

9

Pennsylvania State Police, Attorney General or other law

10

enforcement official prior to the beginning of the proceeding

11

solely for the purpose of seeking clarification or correction to

12

evidentiary materials intended for use in the proceedings.

13

"Immediate family."  The spouse, parents, children and

14

siblings.

15

["Licensed entity representative."  A person acting on behalf

16

of or representing the interest of any applicant, licensee,

17

permittee or registrant, including an attorney, agent or

18

lobbyist, regarding any matter which may reasonably be expected

19

to come before the board.]

20

Section 6.  Title 4 is amended by adding a section to read:

21

§ 1202.2.  Expenses of regulatory agencies.

22

Members and employees of the board and employees of the

23

department, the Attorney General and the Pennsylvania State

24

Police whose duties substantially involve the regulation of

25

gaming or enforcement under this part and employees of the

26

Auditor General whose duties involve financial audit activities

27

of the board shall only be reimbursed for actual and reasonable

28

expenses incurred during the performance of their duties under

29

this part. In order to receive reimbursement for an expense in

30

excess of $10, the member or employee of the board, the

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1

department, Attorney General, Auditor General or Pennsylvania

2

State Police shall submit a receipt validating the expense

3

incurred. Reimbursements, allowances or other payments in an

4

amount greater than the expenses for which receipts are

5

submitted are prohibited. Receipts and requests for

6

reimbursement shall be financial records for purposes of the act

7

of February 14, 2008 (P.L.6, No.3), known as the Right-to-Know

8

Law.

9

Section 7.  Section 1204 of Title 4 is amended to read:

10

§ 1204.  Licensed gaming entity application appeals from board.

11

The Supreme Court of Pennsylvania shall be vested with

12

exclusive appellate jurisdiction to consider appeals of any

13

final order, determination or decision of the board involving

14

the approval, issuance, denial or conditioning of a slot machine

15

license or table game operation certificate. Notwithstanding the

16

provisions of 2 Pa.C.S. Ch. 7 Subch. A (relating to judicial

17

review of Commonwealth agency action) and 42 Pa.C.S. § 763 

18

(relating to direct appeals from government agencies), the

19

Supreme Court shall affirm all final orders, determinations or

20

decisions of the board involving the approval, issuance, denial

21

or conditioning of a slot machine license or table game

22

operation certificate unless it shall find that the board

23

committed an error of law or that the order, determination or

24

decision of the board was arbitrary and there was a capricious

25

disregard of the evidence.

26

Section 7.1.  Section 1205(b)(1) and (2) of Title 4 are

27

amended and the subsection is amended by adding a paragraph to

28

read:

29

§ 1205.  License or permit application hearing process; public

30

input hearings.

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1

* * *

2

(b)  Public input hearing requirement.--

3

(1)  [Prior to licensing a facility under this part, the

4

board shall hold at least one public input hearing on the

5

matter.] The board shall hold at least one public input

6

hearing prior to:

7

(i)  Issuing or renewing a slot machine license.

8

(ii)  Approving the structural redesign of any

9

licensed facility, including a licensed facility located

10

in a city of the first class.

11

(2)  All public input hearings [relating to an

12

application for a slot machine license] under paragraph (1) 

13

shall be held in the municipality where the licensed facility

14

will be, or is, located and shall be organized in cooperation

15

with the municipality.

16

* * *

17

(4)  In addition to any witnesses scheduled to testify

18

under paragraph (3), the board shall establish a public

19

comment period during which time members of the public may

20

address the board regarding the proposed license or

21

structural redesign of a licensed facility under paragraph

22

(1). The board, in its discretion, may place reasonable time

23

limits on an individual's comments.

24

Section 8.  Section 1206(f) of Title 4 is amended to read:

25

§ 1206.  Board minutes and records.

26

* * *

27

(f)  Confidentiality of information.--[All]

28

(1)  The following information submitted by an applicant

29

or licensee pursuant to section 1310(a) (relating to slot

30

machine license application character requirements) or

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1

1308(a.1) (relating to applications for license or permit) or

2

obtained by the board or the bureau as part of a background

3

or other investigation from any source shall be [considered]

4

confidential[.] and withheld from public disclosure:

5

(i)  All information relating to good character,

6

honesty and integrity, including family, habits,

7

reputation, history of criminal activity, business

8

activities, financial affairs and business, professional

9

and personal associations submitted under section 1310(a)

10

or 1308(a.1) or otherwise obtained by the board or the

11

bureau.

12

(ii)  Nonpublic personal information, including

13

telephone numbers, Social Security numbers, educational

14

records, memberships, medical records, tax returns and

15

declarations, actual or proposed compensation, financial

16

account records, creditworthiness or a financial

17

condition relating to an applicant, licensee or permittee

18

or the immediate family thereof.

19

(iii)  Documents and information relating to

20

proprietary information, trade secrets, patents or

21

exclusive licenses, architectural and engineering plans

22

and information relating to competitive marketing

23

materials and strategies, which may include customer-

24

identifying information or customer prospects for

25

services subject to competition.

26

(iv)  Security information, including risk prevention

27

plans, detection and countermeasures, location of count

28

rooms, emergency management plans, security and

29

surveillance plans, equipment and usage protocols and

30

theft and fraud prevention plans and countermeasures.

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1

(v)  Information with respect to which there is a

2

reasonable possibility that public release or inspection

3

of the information would constitute an unwarranted

4

invasion into personal privacy of any individual as

5

determined by the board.

6

(vi)  Records of an applicant or licensee not

7

required to be filed with the Securities and Exchange

8

Commission by issuers that either have securities

9

registered under section 12 of the Securities Exchange

10

Act of 1934 (48 Stat. 881, 15 U.S.C. § 78a et seq.) or

11

are required to file reports under section 15(d) of the

12

Securities Exchange Act of 1934.

13

(vii)  Records considered nonpublic matters or

14

information by the Securities and Exchange Commission as

15

provided by 17 CFR 200.80 (relating to commission records

16

and information).

17

(viii)  Any financial information deemed confidential

18

by the board upon a showing of good cause by the

19

applicant or licensee.

20

(2)  No claim of confidentiality shall be made regarding

21

any information from a criminal history record check that is

22

available to the public under 18 Pa.C.S. § 9121(b) (relating

23

to noncriminal justice agencies and individuals).

24

(3)  This subsection shall not apply to any information

25

in possession of the board that is otherwise publicly

26

available from another public agency in this Commonwealth or

27

another jurisdiction.

28

(4)  Except as provided in section 1517(f) (relating to

29

[investigation] investigations and enforcement), the

30

information made confidential pursuant to this section shall

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1

be withheld from public disclosure in whole or in part,

2

except that any confidential information shall be released

3

upon the lawful order of a court of competent jurisdiction

4

or, with the approval of the Attorney General, to a duly

5

authorized law enforcement agency or shall be released to the

6

public, in whole or in part, to the extent that such release

7

is requested by an applicant and does not otherwise contain

8

confidential information about another person.

9

(5)  The board may seek a voluntary waiver of

10

confidentiality from an applicant or licensed entity but may 

11

not require any applicant or licensed entity to waive any

12

confidentiality provided for in this subsection as a

13

condition for the approval of a license or any other action

14

of the board. Any [person who violates this subsection]

15

current or former board member, employee or independent

16

contractor of the board and any current or former member or

17

employee of the Pennsylvania State Police, Office of Attorney

18

General, Office of the Auditor General or department who

19

publicly discloses confidential information in violation of

20

this subsection shall be administratively disciplined by

21

discharge, suspension, termination of contract or other

22

formal disciplinary action as [the board deems] appropriate.

23

* * *

24

Section 8.1.  Section 1207(4), (8) and (14) of Title 4 are

25

amended and the section is amended by adding a paragraph to

26

read:

27

§ 1207.  Regulatory authority of board.

28

The board shall have the power and its duties shall be to:

29

* * *

30

(4)  Require that each licensed entity provide to the

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1

board its audited annual financial statements, with such

2

additional detail as the board from time to time shall

3

require, which information shall be submitted not later than

4

[60] 90 days after the end of the licensee's fiscal year.

5

* * *

6

(7.1)  Enforce prescribed hours for the operation of

7

table games so that a certificate holder may conduct table

8

games on any day during the year in order to meet the needs

9

of patrons or to meet competition.

10

(8)  Require that each licensed gaming entity prohibit

11

persons under 21 years of age from operating or using slot

12

machines or playing table games.

13

* * *

14

(14)  Consult with members of the Pennsylvania State

15

Police, the Office of Attorney General, the department and

16

such other persons it deems necessary for advice regarding

17

the various aspects of the powers and duties imposed on it

18

under this part and its jurisdiction over the authorization

19

and operation of slot machines, table games and licensed

20

facilities.

21

* * *

22

Section 8.2.  Sections 1208(1), 1209(b) and (f) and 1210 of

23

Title 4 are amended to read:

24

§ 1208.  Collection of fees and fines.

25

The board has the following powers and duties:

26

(1)  To levy and collect fees from the various

27

applicants, licensees and permittees to fund the operations

28

of the board. [The] Except as provided for table games, the 

29

fees shall be deposited into the State Gaming Fund as

30

established in section 1403 (relating to establishment of

- 92 -

 


1

State Gaming Fund and net slot machine revenue distribution)

2

and distributed to the board upon appropriation by the

3

General Assembly. In addition to the fees set forth in

4

sections 1209 (relating to slot machine license fee) and 1305

5

(relating to Category 3 slot machine license), the board

6

shall assess and collect fees as follows:

7

(i)  Supplier licensees shall pay [a]:

8

(A)  A fee of $25,000 upon the issuance of a

9

license [and $10,000 for the annual renewal of a

10

supplier license.] to supply slot machines or

11

associated equipment used in connection with slot

12

machines.

13

(B)  A fee of $25,000 upon the issuance of a

14

license to supply table game devices or associated

15

equipment used in connection with table games or

16

table game devices.

17

(C)  A fee of $15,000 for the annual renewal of

18

the appropriate supplier license. Upon the extension

19

of the renewal period under section 1317(c)(1)

20

(relating to supplier licenses), the fee shall be

21

$30,000 for the renewal.

22

(ii)  Manufacturer licensees shall pay [a]:

23

(A)  A fee of $50,000 upon the issuance of a

24

license [and $25,000 for the annual renewal of a

25

manufacturer license.] to manufacture slot machines

26

and associated equipment used in connection with slot

27

machines.

28

(B)  A fee of $50,000 upon the issuance of a

29

license to manufacture table game devices or

30

associated equipment used in connection with table

- 93 -

 


1

games or table game devices.

2

(C)  A manufacturer licensee shall pay an annual

3

fee of $30,000 for the annual renewal of the

4

appropriate manufacturer license. Upon the extension

5

of the renewal period under section 1317.1(c)(1)

6

(relating to manufacturer licenses), the fee shall be

7

$75,000 for the renewal.

8

(iii)  Each application for a slot machine license,

9

supplier license or manufacturer license must be

10

accompanied by a nonrefundable fee set by the board for

11

the cost of each individual requiring a background

12

investigation. The reasonable and necessary costs and

13

expenses incurred in any background investigation or

14

other investigation or proceeding concerning any

15

applicant, licensee, permittee or registrant shall be

16

reimbursed to the board by those persons.

17

* * *

18

§ 1209.  Slot machine license fee.

19

* * *

20

(b)  Term.--A slot machine license, after payment of the fee,

21

shall be in effect unless suspended, revoked or not renewed by

22

the board upon good cause consistent with the license

23

requirements as provided for in this part. Slot machine

24

licensees shall be required to update the information in their

25

initial applications annually, and the license of a licensee in

26

good standing shall be updated and renewed annually for two

27

subsequent years following the initial license issuance.

28

Thereafter, license renewals shall be every three years. Nothing

29

in this subsection shall relieve a licensee of the affirmative

30

duty to notify the board of any changes relating to the status

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1

of its license or to any other information contained in

2

application materials on file with the board. As to the renewal

3

of a license, no additional license fee pursuant to subsection

4

(a) shall be required.

5

* * *

6

[(f)  Return of slot machine license fee.--

7

(1)  The entire one-time slot machine license fee of

8

$50,000,000 for each Category 1 and Category 2 slot machine

9

license shall be returned to each licensee in the event

10

section 1201 (relating to Pennsylvania Gaming Control Board

11

established), 1202 (relating to general and specific powers)

12

or 1307 (relating to number of slot machine licenses) is

13

amended or otherwise altered by an act of the General

14

Assembly within five years following the initial issuance of

15

any slot machine licenses pursuant to section 1301 (relating

16

to authorized slot machine licenses) to change:

17

(i)  the composition of the board;

18

(ii)  the number or voting powers of members of the

19

board;

20

(iii)  the manner in which members are nominated or

21

appointed to the board;

22

(iv)  the length of term for which each member

23

serves;

24

(v)  the general jurisdiction of the board in a

25

manner that impairs or otherwise reduces the board's

26

licensing authority; or

27

(vi)  section 1307 to increase the statutory maximum

28

number of permissible licensed facilities.

29

(2)  In the event that this part is amended or otherwise

30

altered by an act of the General Assembly as described

- 95 -

 


1

pursuant to paragraph (1):

2

(i)  In the sixth year following the initial issuance

3

of any slot machine licenses pursuant to section 1301, a

4

Category 1 and 2 slot machine licensee shall be entitled

5

to a partial return of the one-time slot machine license

6

fee in the amount of $41,666,667.

7

(ii)  In the seventh year, the licensee shall be

8

entitled to a partial return of the one-time slot machine

9

license fee in the amount of $33,333,334.

10

(iii)  In the eighth year, the licensee shall be

11

entitled to a partial return of the one-time slot machine

12

license fee in the amount of $25,000,000.

13

(iv)  In the ninth year, the licensee shall be

14

entitled to a partial return of the one-time slot machine

15

license fee in the amount of $16,666,668.

16

(v)  In the tenth year, the licensee shall be

17

entitled to a partial return of the one-time machine

18

license fee in the amount of $8,333,334.

19

In the event that the action described in paragraph (1) occurs

20

after the expiration of ten years, the licensee shall not be

21

entitled to a return of any portion of the one-time slot machine

22

license fee. Notwithstanding the foregoing, no slot machine

23

licensee shall be entitled to the return of any portion of the

24

fee as a result of any act of the General Assembly insofar as it

25

implements a recommendation made by the board pursuant to a

26

qualified majority vote. In the event a full or partial return

27

of the slot machine license fee imposed pursuant to subsection

28

(a) becomes due pursuant to this subsection, the amount to be

29

returned to any slot machine licensee shall be reduced on a

30

dollar-for-dollar basis by the total accumulated tax credits

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1

granted to such licensee pursuant to subsection (c). In no event

2

shall the total amount of the slot machine license fee returned,

3

combined with the total tax credits granted, exceed the amounts

4

set forth in this subsection for any licensee. The total or

5

partial return of the slot machine license fee shall extinguish

6

a licensee's right to claim any further tax credits pursuant to

7

subsection (c).]

8

§ 1210.  Number of slot machines.

9

(a)  Initial complement.--Except as provided for Category 3

10

slot machine licensees under section 1305 (relating to Category

11

3 slot machine license), all slot machine licensees shall be

12

permitted to operate up to 3,000 slot machines at any one

13

licensed facility and shall be required to operate and make

14

available to play a minimum of 1,500 machines at any one

15

licensed facility within one year of the issuance by the board

16

of a slot machine license unless otherwise extended by the

17

board, upon application and for good cause shown, for an

18

additional period not to exceed 24 months.

19

(a.1)  Minimum number of slot machines.--Except as provided

20

for Category 3 slot machine licensees under section 1305 and

21

during the conversion from a temporary to a permanent facility,

22

approved renovations for a limited time or an emergency, all

23

slot machine licensees shall be required to operate and make

24

available for play a minimum of 1,850 machines at any one

25

licensed facility at all times.

26

(b)  Additional slot machines.--Except as provided for

27

Category 3 slot machine licensees under section 1305, six months

28

following the date of commencement of slot machine operations,

29

the board may permit a slot machine licensee to install and

30

operate up to 2,000 additional slot machines at its licensed

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1

facility, beyond those machines authorized under subsection (a),

2

upon application by the slot machine licensee. The board, in

3

considering such an application, shall take into account the

4

appropriateness of the physical space where the additional slot

5

machines will be located and the convenience of the public

6

attending the facility. The board may also take into account the

7

potential benefit to economic development, employment and

8

tourism, enhanced revenues to the Commonwealth and other

9

economic indicators it deems applicable in making its decision.

10

(c)  Limitation.--For the two and one-half years following

11

the beginning of slot machine operations at the licensed

12

facility, no licensed gaming entity may make available for play

13

by its patrons at its licensed facility more than 50% of slot

14

machines from the same manufacturer or its affiliate,

15

intermediary, subsidiary or holding company. The provisions of

16

this subsection shall not apply to machines purchased pursuant

17

to a contract or order executed by a conditional Category 1 or

18

Category 1 slot machine licensee prior to October 20, 2006.

19

Section 9.  Section 1211(a) of Title 4 is amended and the

20

section is amended by adding subsections to read:

21

§ 1211.  Reports of board.

22

(a)  Report of board.--Eighteen months after the effective

23

date of this part and every year on that date thereafter, the

24

board shall issue a report to the Governor and each member of

25

the General Assembly on the general operation of the board and

26

each slot machine licensee's performance, including, but not

27

limited to, number and win per slot machine and total gross

28

table game revenue at each licensed [facilities] facility during

29

the previous year, all taxes, fees, fines and other revenues

30

collected and, where appropriate, disbursed, the costs of

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1

operation of the board, all hearings conducted and the results

2

of the hearings and other information that the board deems

3

necessary and appropriate.

4

(a.1)  Expenses.--Beginning 30 days after the effective date

5

of this subsection, the board shall post by the 15th of each

6

month on its Internet website a list of all its itemized

7

expenses for the preceding month of employees and members of the

8

board and all itemized expenses of officers and employees of the

9

department, the Attorney General and the Pennsylvania State

10

Police whose duties involve the regulation of gaming under this

11

part and all itemized expenses of officers and employees of the

12

Auditor General whose duties involve audit activities of the

13

board. The list shall identify the nature of the expense, the

14

employee or board member and the agency and employee of the

15

agency to which an expense is attributable. The list shall

16

include each expense for which a receipt is submitted to obtain

17

reimbursement. If the expense is directly attributable to or

18

paid by a licensed gaming entity, the list shall identify the

19

licensed gaming entity and whether the expense was paid by the

20

licensed gaming entity. By October 1 of each year, a final

21

report of all expenses for the preceding fiscal year shall be

22

posted on the board's Internet website. The board, the

23

department, the Attorney General, the Auditor General and the

24

Pennsylvania State Police shall collaborate to develop a uniform

25

system to carry out the requirements of this subsection.

26

* * *

27

(e)  Submission of reports.--Notwithstanding any other

28

provision of this part to the contrary, all reports and studies

29

of the board required to be submitted to the General Assembly

30

under this part after the effective date of this subsection

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1

shall be submitted by October 1, 2010, and annually thereafter.

2

Section 9.1.  Title 4 is amended by adding a section to read:

3

§ 1211.1.  Report by slot machine licensee.

4

(a)  Report.--Each slot machine licensee shall annually

5

compile, or cause to be compiled, and submit to the board and

6

the General Assembly a report on minors and unauthorized gaming.

7

The report shall include the following information for the

8

licensed facility that the licensee is licensed to operate:

9

(1)  The number of minors who were denied entry into the

10

licensed facility.

11

(2)  The number of minors who were physically escorted

12

from the premises of the licensed facility.

13

(3)  The number of minors who were detected participating

14

or attempting to participate in gaming.

15

(4)  The number of minors who were taken into custody by

16

a law enforcement agency on the premises of the licensed

17

facility.

18

(5)  The number of minors who were detected illegally

19

consuming alcohol on the premises of the licensed facility.

20

(6)  The number of excluded persons who were denied entry

21

into the table game facility.

22

(7)  A summary of the action taken by the slot machine

23

licensee in resolution of incidents under paragraphs (1),

24

(2), (3), (4), (5) and (6), including any action, resolution

25

or disposition of any violations of this part.

26

(8)  A summary of actions taken and controls implemented

27

by the slot machine licensee to prevent facility access by

28

minors and underage gaming and underage drinking.

29

(b)  Definition.--As used in this subsection the term "minor"

30

shall mean an individual who is under 21 years of age.

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1

Section 10.  Sections 1212 and 1213 of Title 4 are amended to

2

read:

3

§ 1212.  Diversity goals of board.

4

(a)  Intent.--It is the intent and goal of the General

5

Assembly that the board promote and ensure diversity in all

6

aspects of the gaming activities authorized under this part. The

7

board shall work to enhance the representation of diverse groups

8

in [the]:

9

(1)  The ownership[, participation and operation] of

10

licensed entities and licensed facilities in this

11

Commonwealth [and through the].

12

(2)  The ownership[, participation and operation] of

13

business enterprises associated with or utilized by licensed

14

entities and licensed facilities and through the provision of

15

goods and services utilized by slot machine licensees under

16

this part.

17

(3)  The operation of licensed entities and licensed

18

facilities and the conduct of gaming in this Commonwealth by

19

ensuring licensed entities and licensed facilities promote

20

the participation of diverse groups by affording equal access

21

to employment opportunities, including key employee, gaming

22

employee, and nongaming employee positions.

23

(4)  The operation of business enterprises associated

24

with or utilized by licensed entities and licensed

25

facilities, including business enterprises that provide

26

goods, property and services utilized by slot machine

27

licensees in this Commonwealth by ensuring these business

28

enterprises promote the participation of diverse groups by

29

affording equal access to employment opportunities.

30

(5)  The construction, renovation or reconstruction of a

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1

licensed facility by ensuring that all contracts and

2

subcontracts to be awarded relating to the construction,

3

renovation or reconstruction of a licensed facility contain

4

adequate provisions ensuring all contractors or

5

subcontractors, including any assignees, will promote the

6

participation of diverse groups in any proposed construction,

7

renovation or reconstruction project by affording equal

8

access to employment opportunities.

9

(6)  The rendering of professional services to licensed

10

entities and licensed facilities by ensuring licensed

11

entities and licensed facilities promote the participation of

12

diverse groups by affording equal access to professional

13

service contractual opportunities.

14

(b)  Investigations.--The board [is authorized to] shall 

15

investigate and conduct [an annual study] quarterly reviews to

16

ascertain whether effective and meaningful action has been taken

17

or will be taken to [enhance] achieve the representation of

18

diverse groups in the ownership, participation and operation of

19

licensed facilities in this Commonwealth, through the ownership

20

and operation of business enterprises associated with or

21

utilized by slot machine and table game licensees, through the

22

provision of goods, property and services utilized by slot

23

machine and table game licensees and through employment

24

opportunities.

25

(c)  Completion of investigation.--The first study shall be

26

completed six months following the effective date of this part,

27

if practically possible, and annually thereafter and shall

28

contain recommendations which the board determines appropriate.

29

Each study shall contain, at a minimum:

30

(1)  A descriptive summary of the board's efforts to

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1

promote and ensure diversity in all aspects of its operation.

2

(2)  A descriptive summary of the following relating to

3

each slot machine licensee's licensed facility:

4

(i)  Employment and salary range information.

5

(ii)  Employee recruitment and retention programs

6

designed to ensure the participation of diverse groups in

7

employment positions at the licensed facility.

8

(iii)  Minority-owned business enterprise and women-

9

owned business enterprise contracting and subcontracting

10

data.

11

(d)  Facility responsibility.--Each licensed facility shall

12

provide information as requested by the board to enable the

13

board to complete the study required under subsection (c).

14

(e)  Definition.--As used in this section the term

15

"professional services" means those services rendered to a

16

licensed entity or licensed facility in this Commonwealth,

17

including, but not limited 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

§ 1213.  License or permit prohibition.

27

[No applicant for a license or permit under this part,

28

including principals and key employees,] The following apply:

29

(1)  The board shall be prohibited from granting a

30

principal license to a person who has been convicted of a

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1

felony [or gambling] offense in any jurisdiction [shall be

2

issued a license or permit unless 15 years has elapsed from

3

the date of expiration of the sentence for the offense].

4

(2)  [When determining whether to issue a license or

5

permit to an applicant who has been convicted in any

6

jurisdiction of a felony or gambling offense,] In addition to

7

the prohibition under paragraph (1), the board shall be

8

prohibited from granting the following:

9

(i)  A principal license to a person who has been

10

convicted of a gambling offense in any jurisdiction that

11

is classified as a misdemeanor punishable by imprisonment

12

of more than one year unless 15 years have elapsed from

13

the date of conviction for the offense.

14

(ii)  A key employee, gaming employee permit or

15

license other than a principal license to a person who

16

has been convicted of a felony offense or a gambling

17

offense classified as a misdemeanor punishable by

18

imprisonment of more than one year in any jurisdiction

19

unless 15 years have elapsed from the date of conviction

20

for the offense.

21

(3)  Following the expiration of the prohibition period

22

under paragraph (2), in determining whether to issue a

23

license or permit under paragraph (2), the board shall

24

consider the following factors:

25

[(1)] (i)  The nature and duties of the applicant's

26

position with the licensed entity.

27

[(2)] (ii)  The nature and seriousness of the offense

28

or conduct.

29

[(3)] (iii)  The circumstances under which the

30

offense or conduct occurred.

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1

[(4)] (iv)  The age of the applicant when the offense

2

or conduct was committed.

3

[(5)] (v)  Whether the offense or conduct was an

4

isolated or a repeated incident.

5

[(6)] (vi)  Any evidence of rehabilitation, including

6

good conduct in the community, counseling or psychiatric

7

treatment received and the recommendation of persons who

8

have substantial contact with the applicant.

9

(4)  For purposes of this section, a felony offense is an

10

offense punishable by imprisonment for more than five years.

11

Section 10.1.  Title 4 is amended by adding a section to

12

read:

13

§ 1214.  Specific authority to suspend slot machine license.

14

(a)  Conditions.--Any slot machine licensee that is required

15

as a condition of slot machine licensure to make annual payments

16

to a municipality or municipal authority for an economic

17

development project, including any project enumerated in the act

18

of July 25, 2007 (P.L.342, No.53), known as Pennsylvania Gaming

19

Economic Development and Tourism Fund Capital Budget Itemization

20

Act of 2007, shall enter into a written agreement with the

21

municipality or municipal authority and make the first annual

22

payment required under the agreement by October 15, 2009.

23

(b)  Failure to meet conditions.--If the slot machine

24

licensee and the municipality or municipal authority fail to

25

enter into a written agreement, and the slot machine licensee

26

fails to make the first required annual payment under the

27

written agreement, by October 15, 2009, the board shall

28

immediately suspend the slot machine license and appoint a

29

trustee to oversee the operations of the licensed gaming

30

facility. The trustee shall immediately remit the first required

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1

annual payment to the municipality or municipal authority on

2

behalf of the slot machine licensee.

3

(c)  Terms of license suspension.--The slot machine license

4

suspension shall remain in effect until the slot machine

5

licensee and the municipality or municipal authority execute a

6

written agreement governing the terms of the required annual

7

payments, including the date on which the payments shall be

8

made, the amount of each annual payment and the duration of the

9

annual payments. The trustee shall establish an account or

10

accounts to place all profits of the slot machine licensee from

11

gaming or other revenues of the slot machine licensee's licensed

12

facility until a written agreement is executed between the slot

13

machine licensee and the municipality or municipal authority.

14

(d)  Violation of written agreement.--If any slot machine

15

licensee that is required as a condition of slot machine

16

licensure to make annual payments to a municipality or municipal

17

authority for an economic development project, including any

18

project enumerated in the Pennsylvania Gaming Economic

19

Development and Tourism Fund Capital Budget Itemization Act of

20

2007, fails to make any required payment in accordance with the

21

terms of any written agreement between the slot machine licensee

22

and the municipality or municipal authority governing the

23

economic development project, the board shall immediately

24

suspend the slot machine license and appoint a trustee to

25

oversee the operations of the licensed gaming facility. The

26

trustee shall continue to make payments to the municipality or

27

municipal authority according to the terms of the written

28

agreement and establish an account or accounts to place the

29

profits of the slot machine licensee from gaming or other

30

revenues of the slot machine licensee's licensed facility

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1

pending resolution of the payment issue between the slot machine

2

licensee and the municipality or municipal authority.

3

Section 10.2.  Section 1305(a)(1), (c), (d) and (e) of Title

4

4 are amended to read:

5

§ 1305.  Category 3 slot machine license.

6

(a)  Eligibility.--

7

(1)  A person may be eligible to apply for a Category 3

8

license if the applicant, its affiliate, intermediary,

9

subsidiary or holding company has not applied for or been

10

approved or issued a Category 1 or 2 license and the person

11

is seeking to locate a Category 3 licensed facility in a

12

well-established resort hotel having no fewer than 275 guest

13

rooms under common ownership and having substantial year-

14

round recreational guest amenities. The applicant for a

15

Category 3 license shall be the owner or be a wholly owned

16

subsidiary of the owner of the established resort hotel. [A

17

Category 3 license may only be granted upon the express

18

condition that an individual may not enter a gaming area of

19

the licensee if the individual is not a registered overnight

20

guest of the established resort hotel or if the individual is

21

not a patron of one or more of the amenities provided by the

22

established resort hotel.]

23

* * *

24

(c)  Number of slot machines.--Notwithstanding the number of

25

permissible slot machines as set forth in section 1210 (relating

26

to number of slot machines), a Category 3 license granted under

27

the provisions of this section shall entitle the licensed entity

28

to operate no more than 500 slot machines at the licensed

29

facility, provided, however, the board may increase the number

30

of slot machines by a number not to exceed 1,000 slot machines

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1

in the aggregate upon good cause shown by the slot machine

2

licensee and payment of the additional fee pursuant to

3

subsection (d).

4

(d)  Category 3 license fee.--Notwithstanding the one-time

5

slot machine license fee as set forth in section 1209 (relating

6

to slot machine license fee), the board shall impose a one-time

7

Category 3 license fee to be paid by each successful applicant

8

in the amount of $5,000,000 to be deposited in the State Gaming

9

Fund. If the board authorizes the operation of more than 500

10

slot machines at a Category 3 facility pursuant to subsection

11

(c), the board shall impose a one-time fee in the amount of

12

$5,000,000 for each additional 250 slot machines. The fee for

13

the additional slot machines shall be in addition to the

14

$5,000,000 fee required to operate 500 slot machines pursuant to

15

subsection (c) and shall be deposited into the General Fund. The

16

provisions of section 1209 relating to term, credit against tax

17

for slot machine licensees, deposit of license fee and change of

18

ownership or control of a license shall be applicable to a

19

Category 3 license fee.

20

(e)  Definitions.--For the purpose of subsection (a), the

21

following words and phrases shall have the meaning given to them

22

in this subsection:

23

"Amenities."  Any ancillary activities, services or

24

facilities in which a registered guest or the transient public[,

25

in return for non-de minimis consideration as defined by board

26

regulation,] may participate at a resort hotel, including, but

27

not limited to, sports and recreational activities and

28

facilities such as a golf course or golf driving range, tennis

29

courts or swimming pool; health spa; convention, meeting and

30

banquet facilities; entertainment facilities; and restaurant

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1

facilities.

2

["Patron of the amenities."  Any individual who is a

3

registered attendee of a convention, meeting or banquet event or

4

a participant in a sport or recreational event or any other

5

social, cultural or business event held at a resort hotel or who

6

participates in one or more of the amenities provided to

7

registered guests of the resort hotel.]

8

Section 10.3.  Section 1308 of Title 4 is amended by adding a

9

subsection to read:

10

§ 1308.  Applications for license or permit.

11

* * *

12

(a.1)  Submission of information.--Notwithstanding the

13

provisions of 18 Pa.C.S. § 9124(b) (relating to use of records

14

by licensing agencies), an application for a license or permit

15

under this part shall include all arrests and convictions of the

16

applicant. The information shall include:

17

(1)  A brief description of the circumstances surrounding

18

the arrest.

19

(2)  The specific offense charged.

20

(3)  The ultimate disposition of the charges, including

21

the details of any dismissal, plea bargain, conviction or

22

sentence, including any pardon, expungement or order of

23

Accelerated Rehabilitative Disposition.

24

* * *

25

Section 10.4.  Sections 1310 and 1313(c) of Title 4 are

26

amended to read:

27

§ 1310.  Slot machine license application character

28

requirements.

29

(a)  Application.--

30

(1)  Every application for a slot machine license shall

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1

include such information, documentation and assurances as may

2

be required to establish by clear and convincing evidence the

3

applicant's suitability, including good character, honesty

4

and integrity. Information shall include, without limitation,

5

information pertaining to family, habits, character,

6

reputation, criminal history background, business activities,

7

financial affairs and business, professional and personal

8

associates, covering at least the ten-year period immediately

9

preceding the filing date of the application.

10

(2)  Notwithstanding 18 Pa.C.S. § 9124(b) (relating to

11

use of records by licensing agencies), a conviction that has

12

been expunged or overturned, or for which a person has been

13

pardoned or an order of Accelerated Rehabilitative

14

Disposition has been issued, shall be included with an

15

application and shall be considered by the board as part of

16

the review of the applicant's suitability under paragraph

17

(1).

18

(b)  Civil judgments and law enforcement agency

19

information.--Each applicant shall notify the board of any civil

20

judgments obtained against the applicant pertaining to antitrust

21

or security regulation laws of the Federal Government, this

22

Commonwealth or any other state, jurisdiction, province or

23

country. In addition, each applicant shall produce a letter of

24

reference from law enforcement agencies having jurisdiction in

25

the applicant's place of residence and principal place of

26

business, which letter of reference shall indicate that the law

27

enforcement agencies do not have any pertinent information

28

concerning the applicant or, if the law enforcement agency does

29

have information pertaining to the applicant, shall specify the

30

nature and content of that information. If no letters are

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1

received within 30 days of the request, the applicant may submit

2

a statement under oath which is subject to the penalty for false

3

swearing under 18 Pa.C.S. § 4903 (relating to false swearing)

4

that the applicant is or was during the period the activities

5

were conducted in good standing with the gaming or casino

6

enforcement or control agency.

7

(c)  Gaming or casino enforcement agency information.--If the

8

applicant has held a gaming license in a jurisdiction where

9

gaming activities are permitted, the applicant shall produce a

10

letter of reference from the gaming or casino enforcement or

11

control agency which shall specify the experiences of that

12

agency with the applicant, the applicant's associates and the

13

applicant's gaming operation. If no letters are received within

14

30 days of the request, the applicant may submit a statement

15

under oath which is subject to the penalty for false swearing

16

under 18 Pa.C.S. § 4903 that the applicant is or was during the

17

period the activities were conducted in good standing with the

18

gaming or casino enforcement or control agency.

19

(d)  Agency records.--Each applicant for a slot machine

20

license, principal license or key employee license shall be

21

required to apply to the Federal agency deemed appropriate by

22

the board for agency records under the Freedom of Information

23

Act (Public Law 89-554, 5 U.S.C. § 522) pertaining to the

24

applicant and provide the board with the complete record

25

received from the Federal agency. The board may issue a license

26

to the applicant prior to the receipt of information under this

27

subsection.

28

§ 1313.  Slot machine license application financial fitness

29

requirements.

30

* * *

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1

(c)  Applicant's ability to pay license fee.--The board shall

2

require each applicant for a Category 1 or 2 slot machine

3

license at the time of application to post a letter of credit or

4

bond in the amount of $50,000,000 to demonstrate the financial

5

ability to pay the slot machine license fee as required in

6

section 1209 (relating to slot machine license fee) if issued a

7

slot machine license by the board. Each applicant for a Category

8

3 slot machine license at the time of application shall be

9

required to post a letter of credit or bond in the amount of

10

$5,000,000 to demonstrate the financial ability to pay the

11

Category 3 slot machine license fee as required in section 1305

12

(relating to Category 3 slot machine license) if issued a slot

13

machine license by the board. Each Category 3 slot machine

14

licensee that seeks to increase the number of slot machines in

15

operation at the licensed facility pursuant to section 1305(c)

16

(relating to Category 3 slot machine license) shall be required

17

to post a letter of credit or bond in the amount of $5,000,000

18

to demonstrate the financial ability to pay the additional

19

Category 3 slot machine license fee as required in section

20

1305(d).

21

* * *

22

Section 10.5.  Sections 1317(a) and (c) and 1317.1(a), (b)

23

(5), (c), (d.1) and (e) of Title 4 are amended and the sections

24

are amended by adding subsections to read:

25

§ 1317.  Supplier licenses.

26

(a)  Application.--A manufacturer that elects to contract

27

with a supplier under section 1317.1(d.1) (relating to

28

manufacturer licenses) shall ensure that the supplier is

29

licensed under this section. A person seeking to provide slot

30

machines, table game devices or associated equipment to a slot

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1

machine licensee within this Commonwealth through a contract

2

with a licensed manufacturer shall apply to the board for a

3

supplier license.

4

* * *

5

(c)  Review and approval.--Upon being satisfied that the

6

requirements of subsection (b) have been met or waived under

7

subsection (c.1), the board may approve the application and

8

issue the applicant a supplier license consistent with all of

9

the following:

10

(1)  [The license shall be for a period of one year. Upon

11

expiration, the license may be renewed in accordance with

12

subsection (d)] The initial license shall be for a period of

13

one year and shall be subject to renewal annually under

14

subsection (d) for two consecutive one-year periods following

15

the initial issuance. Thereafter, a license shall be subject

16

to renewal every three years. Nothing in this paragraph shall

17

relieve the licensee of the affirmative duty to notify the

18

board of any changes relating to the status of its license or

19

to any information contained in application materials on file

20

with the board.

21

* * *

22

(c.1)  Waiver.--The board shall establish standards and a

23

procedure to allow the board to waive the requirements of this

24

section for any person who holds a supplier license under this

25

section and who seeks to supply table game devices or associated

26

equipment. The board may only waive the requirements of this

27

section if:

28

(1)  The supplier license was issued by the board within

29

a 36-month period immediately preceding the date the supplier

30

licensee files an initial application to supply table game

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1

devices or associated equipment.

2

(2)  The person to whom the supplier license was issued

3

affirms there has been no material change in circumstances

4

relating to the license.

5

(3)  The board determines there has been no material

6

change in circumstances relating to the license that

7

necessitates, at the discretion of the board, that the

8

requirements of this section not be waived.

9

* * *

10

§ 1317.1.  Manufacturer licenses.

11

(a)  Application.--A person seeking to manufacture slot

12

machines, table game devices and associated equipment for use in

13

this Commonwealth shall apply to the board for a manufacturer

14

license.

15

(b)  Requirements.--An application for a manufacturer license

16

shall be on the form required by the board, accompanied by the

17

application fee, and shall include all of the following:

18

* * *

19

(5)  The type of slot machines, table game devices or

20

associated equipment to be manufactured or repaired.

21

(c)  Review and approval.--Upon being satisfied that the

22

requirements of subsection (b) have been met or waived under

23

subsection (c.1), the board may approve the application and

24

grant the applicant a manufacturer license consistent with all

25

of the following:

26

(1)  [The license shall be for a period of one year. Upon

27

expiration, a license may be renewed in accordance with

28

subsection (d)] The initial license shall be for a period of

29

one year and shall be subject to renewal annually under

30

subsection (d) for two consecutive one-year periods following

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1

the initial issuance. Thereafter, a license shall be subject

2

to renewal every three years. Nothing in this paragraph shall

3

relieve the licensee of the affirmative duty to notify the

4

board of any changes relating to the status of its license or

5

to any other information contained in application materials

6

on file with the board.

7

(2)  The license shall be nontransferable.

8

(3)  Any other condition established by the board.

9

(c.1)  Waiver.--The board shall establish standards and a

10

procedure to allow the board to waive the requirements of this

11

section for any person who holds a manufacturer license under

12

this section and who seeks to manufacture table game devices or

13

associated equipment. The board may only waive the application

14

requirement under this section if:

15

(1)  The manufacturer license was issued by the board

16

within a 36-month period immediately preceding the date the

17

manufacturer licensee files an application to manufacture

18

table game devices or associated equipment.

19

(2)  The person to whom the manufacturer license was

20

issued affirms there has been no material change in

21

circumstances relating to the license.

22

(3)  The board determines there has been no material

23

change in circumstances of the licensee that necessitates, at

24

the discretion of the board, that the requirements of this

25

section not be waived.

26

* * *

27

(d.1)  Authority.--The following shall apply to a licensed

28

manufacturer:

29

(1)  A licensed manufacturer or its designee, as licensed

30

by the board, may supply or repair any slot machine, table

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1

game device or associated equipment manufactured by the

2

licensed manufacturer.

3

(2)  A manufacturer may contract with a supplier under

4

section 1317 (relating to supplier licenses) to provide slot

5

machines or associated equipment to a slot machine licensee

6

within this Commonwealth.

7

(3)  A manufacturer may contract with a supplier under

8

section 1317 to provide table games or associated equipment

9

to a certificate holder.

10

(e)  Prohibitions.--

11

(1)  No person may manufacture slot machines, table game

12

devices or associated equipment for use within this

13

Commonwealth by a slot machine licensee unless the person has

14

been issued a manufacturer license as required under this

15

section.

16

(2)  No slot machine licensee may use slot machines,

17

table game devices or associated equipment unless the slot

18

machines, table game devices or associated equipment were

19

manufactured by a person that has been issued a manufacturer

20

license under this section.

21

(3)  No person issued a license under this section shall

22

apply for or be issued a license under section 1317.

23

(4)  No limitation shall be placed on the number of

24

manufacturer licenses issued or the time period to submit

25

applications for licensure, except as required to comply with

26

section 1306 (relating to order of initial license issuance).

27

Section 10.6.  Title 4 is amended by adding a section to

28

read:

29

§ 1317.2.  Gaming service provider.

30

(a)  Development of classification system.--The board shall

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1

develop uniform standards and procedures governing the

2

registration of gaming service providers. Each applicant and all

3

individuals and entities associated with the applicant for

4

authorization to act as a gaming service provider shall submit

5

to a background investigation. The classification system

6

developed by the board shall be based upon the following:

7

(1)  The monetary value or amount of business conducted

8

or expected to be conducted by the gaming service provider

9

with an applicant for a slot machine licensee or a slot

10

machine licensee in any consecutive 12-month period.

11

(2)  Whether the employees of the gaming service provider

12

will have access to the gaming floor or the restricted area

13

of a licensed facility.

14

(3)  The board's analysis of the goods, property or

15

service provided or to be provided by the gaming service

16

provider in order to ensure the integrity of gaming.

17

(b)  Authority to exempt.--The board may exempt any person or

18

field of commerce from the requirements of this section if the

19

board determines the following:

20

(1)  The person or field of commerce is regulated by an

21

agency of the Federal Government or an agency of the

22

Commonwealth.

23

(2)  Regulation of the person or field of commerce is

24

determined not to be necessary in order to protect the public

25

interest or the integrity of gaming.

26

(c)  Duties of gaming service providers.--Each gaming service

27

provider shall have a continuing duty to:

28

(1)  Provide all information, documentation and

29

assurances as the board may require.

30

(2)  Cooperate with the board in investigations, hearings

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1

and enforcement and disciplinary actions.

2

(3)  Comply with all conditions, restrictions,

3

requirements, orders and rulings of the board in accordance

4

with this part.

5

(4)  Report any change in circumstances that may render

6

the gaming service provider ineligible, unqualified or

7

unsuitable for continued licensure.

8

(d)  Requirement for permit.--The board may require employees

9

of a gaming service provider to obtain a permit or other

10

authorization if, after an analysis of duties, responsibilities

11

and functions, the board determines that a permit or other

12

authorization is necessary to protect the integrity of gaming.

13

(e)  Interim authorization.--The board or a designated

14

employee of the board may permit a gaming service provider

15

applicant to engage in business with an applicant for a slot

16

machine license or a slot machine licensee prior to approval of

17

the gaming service provider application if the following

18

criteria have been satisfied:

19

(1)  A completed application has been filed with the

20

board by the gaming service provider.

21

(2)  The slot machine applicant or slot machine licensee

22

contracting or doing business with the gaming service

23

provider certifies that it has performed due diligence on the

24

gaming service provider and believes that the applicant meets

25

the qualification to be a gaming service provider pursuant to

26

this section.

27

(3)  The gaming service provider applicant agrees in

28

writing that the grant of interim authorization to conduct

29

business prior to board approval of its application does not

30

create a right to continue to engage in business if the board

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1

determines that the applicant is not suitable and interim

2

authorization is not in the public interest.

3

(f)  Construction.--Nothing in this section shall be

4

construed to prohibit the board from rescinding a grant of

5

interim authorization if, at any time, the suitability of the

6

person subject to interim authorization is at issue or if the

7

person fails to cooperate with the board, the bureau or an agent

8

of the board or bureau.

9

(g)  Provider lists.--The board shall:

10

(1)  Develop and maintain a list of approved gaming

11

service providers and a list of gaming service providers who

12

are authorized to provide goods, property or services under a

13

grant of interim authorization pursuant to subsection (e)(3).

14

(2)  Develop and maintain a list of prohibited gaming

15

service providers. An applicant for a slot machine license or

16

a slot machine licensee may not enter into an agreement or

17

continue to engage in business with a gaming service provider

18

listed on the prohibited gaming service provider list.

19

(h)  Emergency authorization.--A slot machine licensee may

20

utilize a gaming service provider that has not been approved by

21

the board when a threat to public health, welfare or safety

22

exists or circumstances outside the control of the slot machine

23

licensee require immediate action to protect the public

24

interest. The board shall promulgate regulations to govern the

25

use of gaming service providers under emergency circumstances.

26

(i)  Criminal history record information.--If the

27

classification system developed by the board in accordance with

28

subsection (a) requires a gaming service provider or an employee

29

of a gaming service provider to submit to or provide the bureau

30

with a criminal history record check under 18 Pa.C.S. Ch. 91

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1

(relating to criminal history record information), the bureau

2

shall notify the slot machine licensee that submitted and

3

verified the application of a person if the person's application

4

has been denied or the person's approval or authorization to

5

provide goods, property or services has been revoked or

6

suspended, including the reason for the action taken.

7

Section 10.7.  Sections 1318(c) and 1319 of Title 4 are

8

amended to read:

9

§ 1318.  Occupation permit application.

10

* * *

11

(c)  Prohibition.--No slot machine licensee may employ or

12

permit any person under 18 years of age to render any service

13

whatsoever in any area of its licensed facility [at which] where 

14

slot machines or table games are physically located.

15

§ 1319.  Alternative manufacturer licensing standards.

16

(a)  General rule.--The board may determine whether the

17

licensing standards of another jurisdiction within the United

18

States in which an applicant for a manufacturer license is

19

similarly licensed are comprehensive and thorough and provide

20

similar adequate safeguards as those required by this part. If

21

the board makes that determination, it may issue a manufacturer

22

license to an applicant who holds a similar manufacturer license

23

in such other jurisdiction after conducting an evaluation of the

24

information relating to the applicant from such other

25

jurisdictions, as updated by the board, and evaluating other

26

information related to the applicant received from that

27

jurisdiction and other jurisdictions where the applicant may be

28

licensed, the board may incorporate such information in whole or

29

in part into its evaluation of the applicant.

30

(b)  Abbreviated process.--In the event an applicant for a

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1

[slot machine] manufacturer license is licensed in another

2

jurisdiction, the board may determine to use an alternate

3

process requiring only that information determined by the board

4

to be necessary to consider the issuance of a license, including

5

financial viability of the licensee, to such an applicant.

6

Nothing in this section shall be construed to waive any fees

7

associated with obtaining a license through the normal

8

application process.

9

Section 10.8.  Title 4 is amended by adding a section to

10

read:

11

§ 1319.1.  Alternative supplier licensing standards.

12

(a)  General rule.--The board may determine whether the

13

licensing standards of another jurisdiction within the United

14

States in which an applicant for a supplier's license is

15

similarly licensed are comprehensive and thorough and provide

16

similar adequate safeguards as required by this part. If the

17

board makes that determination, it may issue a supplier license

18

to an applicant who holds a similar supplier license in another

19

jurisdiction after conducting an evaluation of the information

20

relating to the applicant from the other jurisdictions, as

21

updated by the board and evaluating other information related to

22

the applicant received from that jurisdiction and other

23

jurisdictions where the applicant may be licensed, the board may

24

incorporate the information in whole or in part into its

25

evaluation of the applicant.

26

(b)  Abbreviated process.--In the event an applicant for a

27

supplier license is licensed in another jurisdiction, the board

28

may determine to use an alternate process requiring only the

29

information determined by the board to be necessary to consider

30

the issuance of a license, including financial viability of the

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1

licensee to the applicant. Nothing in this section shall be

2

construed to waive any fees associated with obtaining a license

3

through the normal application process.

4

Section 10.9.  Sections 1321, 1326(a), 1328(a)(1) and 1329 of

5

Title 4 are amended to read:

6

§ 1321.  Additional licenses and permits and approval of

7

agreements.

8

(a)  Requirements.--In addition to the requirements for a

9

license or permit specifically set forth in this part, the board

10

may require a license [or], permit or other authorization, and

11

set a fee for the same, for any key or gaming employee or any

12

person who satisfies any of the following criteria:

13

(1)  The person transacts business within this

14

Commonwealth with a slot machine licensee as a ticket

15

purveyor, tour operator, operator of a bus trip program or

16

operator of any other type of travel program or promotional

17

business related to slot machines or table games. The board

18

may also review, deny, order modification or approve, at its

19

discretion, proposed tours, bus routes and travel programs.

20

(2)  The person is presently not [otherwise] required to

21

be licensed or permitted under this part and provides any

22

goods, property or services, including, but not limited to,

23

management contracts for compensation to a slot machine

24

licensee at the licensed facility.

25

(b)  Agreement.--Any agreement to conduct business within

26

this Commonwealth between a person and a slot machine licensee

27

relating to slot machines, table games, table game devices or

28

associated equipment is subject to the approval of the board in

29

accordance with rules and regulations promulgated by the board.

30

Every agreement shall be in writing and shall include a

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1

provision for its termination without liability on the part of

2

the slot machine licensee upon a finding by the board that the

3

agreement is not approved or that it is terminated. Failure to

4

expressly include this condition in the agreement is not a

5

defense in any action brought under this section relating to the

6

termination of the agreement.

7

§ 1326.  License renewals.

8

(a)  Renewal.--All permits and licenses issued under this

9

part unless otherwise provided shall be subject to renewal on an

10

annual basis [upon the application of the holder of the permit

11

or license submitted to the board at least 60 days prior to the

12

expiration of the permit or license] for the first two years

13

following the initial issuance. Thereafter, all permits and

14

licenses shall be subject to renewal every three years. Nothing

15

in this subsection shall relieve a licensee of the affirmative

16

duty to notify the board of any changes relating to the status

17

of its license or to any other information contained in

18

application materials on file with the board. The application

19

for renewal shall be submitted at least 60 days prior to the

20

expiration of the permit or license and shall include an update

21

of the information contained in the initial and any prior

22

renewal applications and the payment of any renewal fee required

23

by this part. The amount of any renewal fee shall be calculated

24

by the board to reflect the longer renewal period. A permit or

25

license for which a completed renewal application and fee, if

26

required, has been received by the board will continue in effect

27

unless and until the board sends written notification to the

28

holder of the permit or license that the board has denied the

29

renewal of such permit or license.

30

* * *

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1

§ 1328.  Change in ownership or control of slot machine

2

licensee.

3

(a)  Notification and approval.--

4

(1)  A slot machine licensee shall notify the board

5

[prior to or] immediately upon becoming aware of any proposed

6

or contemplated change of ownership of the slot machine

7

licensee by a person or group of persons acting in concert

8

which involves any of the following:

9

(i)  More than 5% of a slot machine licensee's

10

securities or other ownership interests.

11

(ii)  More than 5% of the securities or other

12

ownership interests of a corporation or other form of

13

business entity that owns directly or indirectly at least

14

20% of the voting or other securities or other ownership

15

interests of the licensee.

16

(iii)  The sale other than in the ordinary course of

17

business of a licensee's assets.

18

(iv)  Any other transaction or occurrence deemed by

19

the board to be relevant to license qualifications.

20

* * *

21

§ 1329.  [Nonportability] Portability and relocation of slot

22

machine license.

23

(a)  General rule.--Each slot machine license shall only be

24

valid for the specific physical location within the municipality

25

and county for which it was originally granted. [No]

26

(b)  Petition.--An applicant for a slot machine license or a

27

slot machine licensee may petition the board to relocate the

28

approved physical location of a licensed facility. In evaluating

29

a petition to relocate, the board shall consider the following

30

factors:

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1

(1)  The address of the proposed new location and the

2

reason for the relocation.

3

(2)  A comparative analysis, submitted by the petitioner,

4

detailing estimated gross terminal revenues at the new

5

location with estimated gross terminal revenues at the

6

original location.

7

(3)  A comparative analysis, submitted by the petitioner,

8

detailing the economic impact of the licensed facility at the

9

new location with the estimated economic impact at the

10

original location. The comparative analysis shall include the

11

total cost of the project and projected direct and indirect

12

employment figures.

13

(4)  A comprehensive traffic study commissioned by the

14

board.

15

(5)  Community support or opposition.

16

(6)  Any other information requested by the board.

17

(c)  Relocation.--A slot machine licensee [shall] may be

18

permitted to move or relocate the physical location of the

19

licensed facility [without] with board approval [for] upon good

20

cause shown if:

21

(1)  the relocated licensed facility remains within the

22

same municipality as originally licensed;

23

(2)  the relocation will facilitate the timely operation

24

of slot machines;

25

(3)  the relocated licensed facility complies with all

26

other provisions of this part related to the siting and

27

location of a licensed facility; and

28

(4)  relocation of the licensed facility is in the best

29

interests of the Commonwealth.

30

(d)  Public input hearing.--The board shall hold at least one

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1

public input hearing in the municipality where the licensed

2

facility will be located prior to approval of the relocation.

3

(e)  Restriction.--No grant or loan from the Commonwealth may

4

be awarded for the purpose of relocating or developing the

5

relocated licensed facility to comply with any conditions of

6

approval of the relocation.

7

Section 11.  Title 4 is amended by adding a section to read:

8

§ 1332.  Appointment of trustee.

9

(a)  Appointment.--Upon petition of the Office of Enforcement

10

Counsel, the board may order the appointment of a trustee from

11

the list required under subsection (j) to act on behalf of the

12

interests of the Commonwealth and the board to assure compliance

13

with this part and any conditions imposed upon the slot machine

14

license in the following circumstances:

15

(1)  Upon the revocation, suspension or nonrenewal of a

16

slot machine license or a principal license if the principal

17

licensee is the only principal who exercises operational

18

control of the licensed facility.

19

(2)  Upon the failure to renew a slot machine license or

20

a principal license if the principal licensee is the only

21

principal who exercises operational control of the licensed

22

facility until the slot machine or principal license is

23

renewed or until the discontinuation of the trusteeship

24

pursuant to subsection (i).

25

(3)  If necessary to protect the best interests of the

26

Commonwealth.

27

(b)  Qualifications.--The following shall apply:

28

(1)  A trustee shall be required to qualify as a

29

principal and obtain a principal license pursuant to this

30

part. The board may appoint a trustee and award the trustee a

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1

temporary principal license as prescribed in board

2

regulations.

3

(2)  Before assuming duties, a trustee shall execute and

4

file a bond for the faithful performance of the trustee's

5

duties. The bond shall be payable to the board with sureties

6

and in the amount and form as required by board order. The

7

cost of the bond shall be paid by the former or suspended

8

licensee.

9

(3)  A trustee shall be a resident of this Commonwealth.

10

(c)  Powers.--A trustee appointed under this section shall

11

exercise only those powers and perform those duties expressly

12

conferred upon the trustee by the board. The board's order

13

appointing the trustee shall set forth the powers, duties and

14

responsibilities of the trustees which may include:

15

(1)  Maintaining and operating the licensed facility in a

16

manner that complies with this part and any conditions

17

imposed by the board.

18

(2)  Maintaining and operating the licensed facility

19

consistent with the measures generally taken in the ordinary

20

course of business including:

21

(i)  Entering into contracts.

22

(ii)  Borrowing money.

23

(iii)  Pledging, mortgaging or otherwise encumbering

24

the licensed facility or property thereof as security for

25

the repayment of loans subject to any provisions and

26

restrictions in any existing credit documents.

27

(iv)  Hiring, firing and disciplining employees.

28

(3)  Exercising the rights and obligations of the former

29

or suspended licensee.

30

(4)  Taking possession of all of the property of the slot

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1

machine licensee, including its books, records and papers.

2

(5)  Establishing accounts with financial institutions.

3

An account may not be established with a financial

4

institution in which an affiliate of the former or suspended

5

licensee, or in which the trustee, or an immediate family

6

member of the trustee, has a controlling interest.

7

(6)  Meeting with the former or suspended licensee.

8

(7)  Meeting with principals and key employees at the

9

licensed facility.

10

(8)  Meeting with the independent audit committee.

11

(9)  Meeting with the board's executive director and

12

keeping the board's executive director apprised of actions

13

taken and the trustee's plans and goals for the future.

14

(10)  Hiring legal counsel, accountants or other

15

consultants or assistants, with prior approval of the board,

16

as necessary to carry out the trustee's duties and

17

responsibilities.

18

(11)  Settling or compromising with any debtor or

19

creditor of the former or suspended licensee, including any

20

taxing authority.

21

(12)  Reviewing outstanding agreements to which the

22

former or suspended licensee is a party and advising the

23

board as to which, if any, of the agreements should be the

24

subject of scrutiny, examination or investigation by the

25

board.

26

(13)  Obtaining board approval prior to any sale, change

27

of ownership, change of control, change of financial status,

28

restructuring, transfer of assets or execution of a contract

29

or any other action taken outside of the ordinary course of

30

business.

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1

(14)  Obtaining board approval for any payments outside

2

of those made in the ordinary course of business.

3

Notwithstanding any provision contained in this subsection to

4

the contrary, the trustee shall have the duty to conserve and

5

preserve the assets of the licensed gaming entity.

6

(d)  Compensation.--The board shall establish the

7

compensation of a trustee and shall review and approve actual

8

and reasonable costs and expenses of the trustee, legal counsel,

9

accountants or other consultants or assistants hired by the

10

trustee and other persons the board may appoint in connection

11

with the trusteeship action. The compensation, costs and

12

expenses shall be paid by the former or suspended licensee.

13

Total compensation for the trustee and all individuals hired or

14

retained by the trustee under subsection (c)(10) shall not

15

exceed $600 per hour in the aggregate, except that the board,

16

upon a finding that unanticipated circumstances exist, may

17

adjust the aggregate hourly rate of compensation.

18

(e)  Reports.--A trustee shall file reports with regard to

19

the administration of the trusteeship with the board in the form

20

and at intervals as the board orders. The board may direct that

21

copies or portions of the trustee's reports be mailed to

22

creditors or other parties in interest and make summaries of the

23

reports available to the public and shall post them on the

24

board's Internet website.

25

(f)  Review of actions.--A creditor or party in interest

26

aggrieved by any alleged breach of a delegated power or duty of

27

a trustee in the discharge of the trustee's duties may request a

28

review of the trustee's action or inaction by filing a petition

29

in accordance with board regulations. The petition must set

30

forth in detail the pertinent facts and the reasons why the

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1

facts constitute the alleged breach. The board will review any

2

petition filed under this section and take whatever action, if

3

any, it deems appropriate.

4

(g)  Effect of the trusteeship.--After issuance of an order

5

to appoint a trustee, the former or suspended principal or slot

6

machine licensee may not exercise any of its privileges, collect

7

or receive any debts and pay out, sell, assign or transfer any

8

of its property to anyone without prior approval of the

9

appointed trustee and the board.

10

(h)  Disposition of net income.--During the period of

11

trusteeship, net income shall be deposited in an escrow account

12

maintained for that purpose. Payment of net income during the

13

period of trusteeship may not be made by the trustee without the

14

prior approval of the board. A suspended or former principal or

15

slot machine licensee may request distribution of all or a

16

portion of the net income during the period of trusteeship by

17

filing a petition in accordance with board regulation. The

18

suspended or former principal or slot machine licensee shall

19

have the burden of demonstrating good cause for the distribution

20

of the net income requested.

21

(i)  Discontinuation.--The board may issue an order to

22

discontinue a trusteeship when:

23

(1)  The board determines that the cause for which the

24

trustee was appointed no longer exists.

25

(2)  The trustee has, with the prior approval of the

26

board, consummated the sale, assignment, conveyance or other

27

disposition of all the property or interest of the former

28

principal or slot machine licensee relating to the slot

29

machine license.

30

(j)  List of approved trustees.--The board shall promulgate

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1

regulations to establish a list of persons approved by the board

2

and qualified to serve as a trustee. At a minimum, the

3

regulations shall provide for the following:

4

(1)  The minimum qualifications a person must possess to

5

be approved as a trustee, which shall include qualification

6

as a principal pursuant to this part and possession of a

7

principal license.

8

(2)  The procedure for placement on or removal from the

9

approved trustee list.

10

(3)  Any other information the board deems necessary to

11

carry out the intent of this section.

12

Section 11.1.  Title 4 is amended by adding a chapter to

13

read:

14

CHAPTER 13A

15

TABLE GAMES

16

Subchapter

17

A.  General Provisions

18

B.  Table Games Authorized

19

C.  Table Game Operations

20

D.  (Reserved)

21

E.  Table Game Testing and Certification

22

F.  (Reserved)

23

G.  Table Game Taxes and Fees

24

SUBCHAPTER A

25

GENERAL PROVISIONS

26

Sec.

27

1301A.  (Reserved).

28

1302A.  Regulatory authority.

29

1303A.  Temporary table game regulations.

30

1304A.  Commonwealth resident employment goals.

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1

§ 1301A.  (Reserved).

2

§ 1302A.  Regulatory authority.

3

The board shall promulgate regulations:

4

(1)  Establishing standards and rules for table games,

5

table game devices or associated equipment, including

6

standards distinguishing electronic and nonelectronic table

7

games. The standards shall provide for any new games and

8

variations or composites of approved games, provided the

9

Pennsylvania Gaming Control Board determines the new game, or

10

any variations or composites or other approved games are

11

suitable for use after a test or experimental period under

12

the terms and conditions as the Pennsylvania Gaming Control

13

Board may deem appropriate.

14

(2)  Establishing standards to govern the conduct of

15

table games and the system of wagering associated with table

16

games, including the maintenance of financial books, records

17

and audits.

18

(2.1)  Establishing standards for the daily observation

19

of certificate holder counting and recordation processes for

20

cash, cash equivalents and other representations of value

21

received in the conduct of table games.

22

(3)  Establishing patron notice requirements pertaining

23

to minimum and maximum wagers on table games. Minimum and

24

maximum wagers may be adjusted from time to time by the

25

certificate holder in the normal course of conducting table

26

games, except that changes in minimum wagers at any given

27

table shall not apply to persons already engaged in wagering

28

at that table when the minimum wager is changed, unless 30

29

minutes' notice is provided to each player at that table.

30

(4)  Requiring each certificate holder to:

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1

(i)  Provide written information at each operational

2

gaming table about table game rules, payoffs or winning

3

wagers and other information to each player as the board

4

may require.

5

(ii)  Provide specifications approved by the board

6

under section 1207(11) (relating to regulatory authority

7

of board) to integrate and update the licensed facility's

8

surveillance system to cover all areas where table games

9

are conducted. The specifications shall include

10

provisions providing the board and other persons

11

authorized by the board with onsite access to the system

12

or its signal.

13

(iii)  Designate one or more locations within the

14

licensed facility to conduct table games.

15

(iv)  Ensure that visibility in a licensed facility

16

is not obstructed in any way that could interfere with

17

the ability of the certificate holder, the board and

18

other persons authorized by the board to oversee the

19

conduct of table games.

20

(v)  Integrate the licensed facility's count room for

21

slot machine and table game operations to ensure maximum

22

security of the counting and storage of cash, cash

23

equivalents and other representations of value.

24

(vi)  Equip each gaming table with a sign indicating

25

the permissible minimum and maximum wagers at the gaming

26

table.

27

(vii)  Adopt policies or procedures to prohibit any

28

table game device, equipment or supplies from being

29

possessed, maintained or exhibited by any person on the

30

premises of a licensed facility except in the areas of a

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1

licensed facility where the conduct of table games is

2

authorized or in a restricted area designated to be used

3

for the inspection, service, repair or storage of the

4

table games, table game devices or associated equipment

5

or supplies by the certificate holder.

6

(viii)  Equip all drop boxes in which cash, cash

7

equivalents, fill slips, credit slips, inventory slips or

8

other representations of value are deposited at the

9

gaming tables, and all areas where drop boxes are kept

10

while in use, with two locking devices or keys, of which

11

one locking device or key shall be under the exclusive

12

control of the board, and the second locking device or

13

key shall be under the exclusive control of the

14

certificate holder. The drop boxes shall be brought into

15

or removed from an area where table games are conducted

16

or locked or unlocked in accordance with procedures

17

established by the board.

18

(ix)  Designate secure locations for the inspection

19

and storage of dice, cards, tiles, dominoes, chips and

20

other representations of value used in the conduct of

21

table games as may be approved by the board.

22

(5)  Establishing the size and uniform color by

23

denomination of all chips used in the conduct of table games

24

and a policy for the use of promotional or commemorative

25

chips. All types of chips shall be approved by the board

26

prior to being used for play at a table game at a licensed

27

facility.

28

(5.1)  Establishing the procedure to be used by a

29

certificate holder to determine and extract a rake for the

30

purposes of deriving gross table game revenue. The rake may

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1

be calculated as a percentage or a flat fee from nonbanking

2

table games.

3

(6)  Establishing minimum standards relating to the

4

acceptance of tips or gratuities by dealers and croupiers at

5

a table game, including the requirement that tips or

6

gratuities be placed in a common pool for complete

7

distribution pro rata among all dealers and croupiers.

8

Nothing in this paragraph shall prohibit a certificate holder

9

from adopting a formal policy relating to acceptance of tips

10

and gratuities, provided that the policy meets the minimum

11

standard established by the board under this paragraph.

12

(7)  Establishing the minimal proficiency requirements

13

for individuals to successfully complete a course of training

14

at an approved school under Chapter 17 (relating to gaming

15

schools). The regulations shall not prohibit a certificate

16

holder from establishing a course of training for its table

17

game employees or prohibit a certificate holder from offering

18

employment to an individual who has not attended or completed

19

a course of instruction at a gaming school and shall require

20

a certificate holder that elects to train its employees to

21

submit a detailed summary of the training program to the

22

board and to demonstrate the adequacy of the training.

23

(8)  Permitting certificate holders to request

24

authorization to conduct, and to conduct, temporary table

25

game tournaments or other temporary table game contests in

26

which players compete against one another for cash or prizes

27

and establishing the practices and procedures governing the

28

conduct of the tournaments or contests. The number of

29

approved temporary tournament or contest table games shall

30

not be counted toward the maximum number of table games

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1

authorized by the certificate holder's table game operation

2

certificate.

3

(9)  Designating an employee to approve or deny a

4

certificate holder's request to decrease the number of slot

5

machines in its licensed facility if the slot machine

6

licensee seeks to reduce the number of slot machines by less

7

than 2%. Designated approval for reduction of slot machines

8

shall not exceed 2% in total regardless of the number of

9

requests a slot machine licensee submits for approval.

10

§ 1303A.  Temporary table game regulations.

11

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

12

implementation of this chapter, regulations promulgated by the

13

board shall be deemed temporary regulations which shall expire

14

not later than two years following the publication of the

15

temporary regulation. The board may promulgate temporary

16

regulations not subject to:

17

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

18

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

19

Documents Law.

20

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

21

the Regulatory Review Act.

22

(3)  Sections 204(b) and 301(10) of the act of October

23

15, 1980 (P.L.950, No.164), known as the Commonwealth

24

Attorneys Act.

25

(b)  Expiration.--The board's authority to adopt temporary

26

regulations in subsection (a) shall expire two years after the

27

effective date of this section. Regulations adopted after this

28

period shall be promulgated as provided by law.

29

(c)  Temporary regulations.--The board shall begin publishing

30

temporary regulations governing table game rules, licensing of

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1

manufacturers and suppliers and surveillance standards in the

2

Pennsylvania Bulletin no later than February 1, 2010.

3

§ 1304A.  Commonwealth resident employment goals.

4

(a)  Employment opportunities.--It is the goal of the General

5

Assembly that the board promote and ensure the availability of

6

employment opportunities for Commonwealth residents in

7

operations related to or associated with table game operations

8

as authorized in this chapter. The board shall work with each

9

certificate holder to ensure the representation of Commonwealth

10

residents employed by a certificate holder's table games

11

operation. It is the goal of the Commonwealth that Commonwealth

12

residents comprise at least 85% of each certificate holder's

13

employees related to or associated with table games by the end

14

of the third year following commencement of the conduct of table

15

games at each certificate holder's licensed facility.

16

(b)  Study.--The board shall conduct an annual study to

17

ascertain whether each certificate holder has taken effective

18

and meaningful action to enhance the number of Commonwealth

19

residents employed in positions related to or associated with

20

table games at licensed facilities. The first study shall be

21

completed one year following the issuance of the first table

22

game operation certificate. Each annual study shall contain

23

recommendations which the board determines appropriate. The

24

study shall be submitted to the chairman and minority chairman

25

of the standing committees of the Senate and of the House of

26

Representatives with jurisdiction over this part.

27

SUBCHAPTER B

28

TABLE GAMES AUTHORIZED

29

Sec.

30

1311A.  Authorization to conduct table games.

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1

1312A.  Petition requirements.

2

1313A.  Prohibitions.

3

1314A.  Table game authorization hearing process; public input

4

hearings.

5

1315A.  Standard for review of petitions.

6

1316A.  Timing initial table game authorizations.

7

§ 1311A.  Authorization to conduct table games.

8

(a)  Authorization to conduct.--Notwithstanding any other

9

provision of law to the contrary, the board may authorize a slot

10

machine licensee to conduct table games, the conduct of contests

11

or tournaments involving table games and the system of wagering

12

associated with the conduct of table games at the slot machine

13

licensee's licensed facility. Authorization to conduct table

14

games shall be contingent upon the slot machine licensee's

15

agreement to ensure the conduct of gaming in accordance with

16

this part and any other conditions established by the board.

17

Nothing in this part shall be construed to create a separate

18

license governing the conduct of table games by licensed

19

entities within this Commonwealth.

20

(b)  Number of authorized table games.--

21

(1)  Each Category 1 and Category 2 slot machine licensee

22

awarded a table game operation certificate may be authorized

23

by the board to operate up to 200 table games at any one time

24

at the Category 1 or Category 2 licensed facility.

25

(2)  Each Category 3 slot machine licensee awarded a

26

table game operation certificate may be authorized by the

27

board to operate up to 75 table games at any one time at the

28

Category 3 licensed facility.

29

(c)  Additional authorization.--Notwithstanding subsection

30

(b), a slot machine licensee awarded a table game operation

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1

certificate may, with board approval, exceed the total number of

2

table games authorized in the table game operation certificate

3

to conduct contests or tournaments at locations at the licensed

4

facility as determined pursuant to section 1321A (relating to

5

authorized locations for operation).

6

§ 1312A.  Petition requirements.

7

(a)  General rule.--A slot machine licensee may seek approval

8

to conduct table games by filing a petition with the board.

9

(b)  Petition contents.--A petition seeking authorization to

10

conduct table games shall include the following:

11

(1)  The name, business address and contact information

12

of the petitioner.

13

(2)  The name and business address, job title and a

14

photograph of each principal and key employee of the

15

petitioner who will be involved in the conduct of table games

16

and who is not currently licensed by the board.

17

(3)  An itemized list of the number and types of table

18

games for which authorization is being sought.

19

(4)  The estimated number of full-time and part-time

20

employment positions that will be created at the licensed

21

facility if table games are authorized and an updated hiring

22

plan pursuant to section 1510 (relating to labor hiring

23

preferences) which outlines the petitioner's plan to promote

24

the representation of diverse groups and Commonwealth

25

residents in the new employment positions.

26

(5)  A brief description of the economic benefits

27

expected to be realized by the Commonwealth, its

28

municipalities and its residents if table games are

29

authorized.

30

(6)  The details of any financing obtained or that will

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1

be obtained to fund an expansion or modification of the

2

licensed facility to accommodate table games.

3

(7)  Information and documentation concerning financial

4

background and resources, as the board may require, to

5

establish by clear and convincing evidence the financial

6

stability, integrity and responsibility of the petitioner.

7

(8)  Information and documentation, as the board may

8

require, to establish by clear and convincing evidence that

9

the petitioner has sufficient business ability and experience

10

to create and maintain a successful table game operation. In

11

making this determination, the board may consider the results

12

of the petitioner's slot machine operation, including

13

financial information, employment figures and capital

14

investment.

15

(9)  Information and documentation, as the board may

16

require, to establish by clear and convincing evidence that

17

the petitioner has the financial ability to pay the

18

authorization fee under section 1361A (relating to table game

19

authorization fee).

20

(10)  Detailed site plans identifying the petitioner's

21

proposed table game area within the licensed facility or any

22

proposed temporary facility.

23

(11)  Other information as the board may require.

24

(c)  Confidentiality.--Information submitted to the board

25

under subsection (b)(6), (7), (9), (10) and (11) may be

26

considered confidential by the board if the information would be

27

confidential under section 1206(f) (relating to board minutes

28

and records).

29

§ 1313A.  Prohibitions.

30

(a)  Slot machine licensee.--No slot machine licensee that is

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1

required as a condition of slot machine licensure to make annual

2

payments to a municipality or municipal authority for an

3

economic development project, including any project enumerated

4

in the act of July 25, 2007 (P.L.342, No.53), known as

5

Pennsylvania Gaming Economic Development and Tourism Fund

6

Capital Budget Itemization Act of 2007, may submit a petition

7

under section 1312A (relating to petition requirements) until a

8

written agreement governing the terms of the payments, including

9

the date on which the payments shall be made, the amount of each

10

annual payment and the duration of the annual payments, is

11

executed between the slot machine licensee and the municipality

12

or municipal authority.

13

(b)  Duties of board.--The board shall not accept or approve

14

a petition submitted by any slot machine licensee subject to

15

this section and prohibited by subsection (a) until such written

16

agreement is submitted by the slot machine licensee to the

17

board, which shall ensure the written agreement meets the

18

requirements of this section and all conditions relating to the

19

economic development project imposed by the board when awarding

20

the slot machine license to the licensee are satisfied and until

21

the municipality or municipal authority confirms to the board in

22

writing that the slot machine licensee has made the first

23

required payment under the written agreement.

24

(c)  Construction.--Nothing in this section shall be

25

construed to relieve a slot machine licensee of its legal

26

obligation to make any required annual payments referenced under

27

this section if the slot machine licensee elects not to petition

28

the board for authorization to conduct table games.

29

§ 1314A.  Table game authorization hearing process; public input

30

hearings.

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1

(a)  General rule.--The board's consideration and resolution

2

of all petitions to conduct table games shall be conducted in

3

accordance with 2 Pa.C.S. (relating to administrative law and

4

procedure) or with procedures adopted by order of the board.

5

Notwithstanding the requirements of 2 Pa.C.S. §§ 504 (relating

6

to hearing and record) and 505 (relating to evidence and cross-

7

examination) as they relate to the conduct of oral hearings, the

8

board may adopt procedures to provide parties before it with a

9

documentary hearing, and the board may resolve disputed material

10

facts without conducting an oral hearing where constitutionally

11

permissible.

12

(b)  Public input hearing requirement.--

13

(1)  Prior to granting a petition for a slot machine

14

licensee to conduct table games under this chapter, the board

15

shall hold at least one public input hearing on the matter,

16

in the municipality where the petitioner's licensed facility

17

is located.

18

(2)  A list of all witnesses scheduled to testify at a

19

public input hearing shall be posted on the board's Internet

20

website at least seven days prior to the hearing. The list

21

shall be updated at least three days prior to the hearing.

22

Additional witnesses shall be posted on the board's Internet

23

website as they are added to the list.

24

§ 1315A.  Standard for review of petitions.

25

The board shall grant a petition and authorize the petitioner

26

to operate table games if the petitioner establishes, by clear

27

and convincing evidence, all of the following:

28

(1)  The petitioner's slot machine license is in good

29

standing with the board.

30

(2)  The petitioner conducting table games will have a

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1

positive economic impact on the Commonwealth, its

2

municipalities and residents through increased revenues and

3

employment opportunities.

4

(3)  The petitioner possesses or has secured adequate

5

financing, if necessary, to:

6

(i)  Fund an expansion or modification of the

7

petitioner's licensed facility to accommodate table

8

games.

9

(ii)  Pay the authorization fee under section 1361A

10

(relating to table game authorization fee).

11

(4)  The petitioner has the financial stability,

12

integrity and responsibility to conduct table games.

13

(5)  The petitioner has sufficient business ability and

14

experience to create and maintain a successful table game

15

operation.

16

(6)  The petitioner's proposed internal and external

17

security and proposed surveillance measures within the area

18

of the licensed facility where the petitioner seeks to

19

conduct table games are adequate.

20

(7)  The petitioner agrees to maintain the same number of

21

slot machines in operation on October 1, 2009, and agrees not

22

to decrease the number of slot machines in its licensed

23

facility by more than 2% without formal board approval.

24

(8)  If the petitioner is a Category 3 slot machine

25

licensee, the petitioner agrees to invest at least

26

$30,000,000 in capital improvements over a five-year period

27

at the licensed facility.

28

§ 1316A.  Timing initial table game authorizations.

29

The board shall approve or deny a petition filed under

30

section 1312A (relating to petition requirements) within 90 days

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1

of the effective date of this chapter and no later than 60 days

2

after receipt of the filing.

3

SUBCHAPTER C

4

CONDUCT OF TABLE GAMES

5

Sec.

6

1321A.  Authorized locations for operation.

7

1322A.  Commencement of table game operations.

8

1323A.  Table game operation certificate.

9

1324A.  Condition of continued operation.

10

1325A.  Table game accounting controls and audits.

11

1326A.  Wagering policies.

12

1327A.  Key employees and occupation permits.

13

1328A.  Amendment of statement of conditions.

14

1329A.  Application of Clean Indoor Air Act.

15

1329.1A.  Application of Liquor Code.

16

§ 1321A.  Authorized locations for operation.

17

(a)  Restriction.--Except as provided under subsection (b), a

18

certificate holder shall only be permitted to operate table

19

games at the licensed facility.

20

(a.1)  Temporary facilities.--The board may permit a

21

certificate holder to conduct table games at a temporary

22

facility which is physically connected to, attached to or

23

adjacent to and on the same parcel of land as a permanent

24

facility for a period not to exceed 24 months.

25

(b)  Powers and duties of board.--Upon petition made by a

26

table game operation certificate holder, the board may determine

27

the suitability of a hotel for the conduct of table games. The

28

board may authorize the executive director to designate specific

29

areas of the hotel, including conference rooms, ballrooms or

30

other rooms, in which the certificate holder may conduct table

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1

games for the purposes of temporary contests or tournaments. No

2

certificate holder may be approved to conduct table games in a

3

hotel unless the areas to be designated are equipped with

4

adequate security and surveillance equipment to ensure the

5

integrity of the conduct of a table game, contest or tournament.

6

The petition shall include the number of table games the

7

certificate holder intends to operate during the temporary

8

contest or tournament. In granting authorization under this

9

section, the board shall be prohibited from:

10

(1)  Imposing any criteria or requirements regarding the

11

contents or structure of a hotel which are unrelated to the

12

conduct of table games.

13

(2)  Authorizing the placement or operation of slot

14

machines in a hotel.

15

(3)  Counting the number of temporary contest or

16

tournament table games toward the number of approved tables

17

in the table game operation certificate.

18

§ 1322A.  Commencement of table game operations.

19

A certificate holder may not operate or offer table games for

20

play at a licensed facility until:

21

(1)  The certificate holder is in compliance in all

22

respects with the requirements of this part.

23

(2)  The board has approved the certificate holder's

24

internal controls and audits protocols under section 1325A

25

(relating to table game accounting controls and audits).

26

(3)  The certificate holder's table game employees, where

27

applicable, are licensed, permitted or otherwise authorized

28

by the board to perform their respective duties.

29

(4)  The certificate holder is prepared in all respects

30

to offer table game play to the public at the licensed

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1

facility.

2

(5)  The certificate holder has implemented necessary

3

internal and management controls and security arrangements

4

and surveillance systems for the conduct of table games.

5

(6)  The certificate holder has paid the authorization

6

fee in accordance with section 1361A (relating to table game

7

authorization fee).

8

§ 1323A.  Table game operation certificate.

9

The following shall apply:

10

(1)  A table game operation certificate shall be in

11

effect unless suspended or revoked by the board or not

12

renewed by the certificate holder or by the board upon good

13

cause by the board consistent with the requirements of this

14

part.

15

(2)  The table game operation certificate shall include

16

an itemized list by type and number of the table games

17

approved by the board and permitted in the particular

18

licensed facility. The certificate holder may increase or

19

decrease the number of table games permitted at the licensed

20

facility, change the type of table games played at a

21

particular table or change the configuration of table games

22

upon notice to the board and approval by a designated

23

employee of the board. Unless approved by the board, the

24

total number of table games in operation at the licensed

25

facility may not exceed the number authorized in the table

26

games operation certificate.

27

(3)  Certificate holders shall be required to update the

28

information in their initial table games petition at times

29

prescribed by the board.

30

(4)  No additional authorization fee shall be imposed for

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1

renewal of a table game operation certificate.

2

§ 1324A.  Condition of continued operation.

3

As a condition of continued operation, a certificate holder

4

shall agree to maintain all books, records and documents

5

pertaining to table games in a manner and location within this

6

Commonwealth as approved by the board. All books, records and

7

documents related to table games shall:

8

(1)  be segregated by separate accounts within the slot

9

machine licensee's operations books, records and documents,

10

except for any books, records or documents that are common to

11

both operations;

12

(2)  be immediately available for inspection upon request

13

of the board, the bureau, the Pennsylvania State Police, the

14

Attorney General or agents thereof during all hours of

15

operation of the licensed facility in accordance with

16

regulations promulgated by the board; and

17

(3)  be maintained for a period as the board, by

18

regulation, may require.

19

§ 1325A.  Table game accounting controls and audits.

20

(a)  Approval.--Prior to the commencement of table game

21

operations, a certificate holder shall submit to the board for

22

approval all proposed site plans, internal control systems and

23

audit protocols for the certificate holder's table game

24

operations.

25

(b)  Minimum requirements.--A certificate holder's internal

26

controls and audit protocols shall:

27

(1)  Safeguard its assets and revenues, including the

28

recording of cash and evidences of indebtedness related to

29

table games.

30

(2)  Provide for reliable records, accounts and reports

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1

of any financial event that occurs in the conduct of table

2

games, including reports to the board related to the table

3

games.

4

(3)  Provide for accurate and reliable financial records

5

related to table games.

6

(4)  Establish procedures for all the following:

7

(i)  The receipt, storage and disbursal of chips,

8

cash and cash equivalents used in table games.

9

(ii)  Check cashing.

10

(iii)  The redemption of chips, cash equivalents and

11

other representations of value used in table games and

12

the payoff of jackpots.

13

(iv)  The recording of transactions pertaining to

14

table games.

15

(5)  Establish procedures for the collection and security

16

of moneys at the gaming tables.

17

(6)  Establish procedures for the transfer and recording

18

of chips between the gaming tables and the cashier's cage.

19

(7)  Establish procedures for the transfer of drop boxes

20

for table games from the gaming tables to the count room.

21

(8)  Establish procedures and security for the counting

22

and recording of table game revenue.

23

(9)  Establish procedures for the security, storage and

24

recording of cash, chips and cash equivalents utilized in

25

table games.

26

(10)  Establish procedures and security standards for the

27

handling and storage of table game devices.

28

(11)  Establish procedures and rules governing the

29

conduct of each table game and the responsibility of

30

employees related to table games.

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1

(12)  Establish procedures for the collection and

2

recording of revenue from poker when it is a nonbanking game,

3

including the types of rake utilized and the methodology for

4

calculating the amount of permissible rake.

5

(13)  Ensure that any wagering permitted in a table game

6

is implemented only in accordance with the management's

7

general or specific authorization, as approved by the board.

8

(14)  Ensure the proper and timely accounting of gross

9

table game revenue and the calculation of gross table game 

10

revenue, fees and taxes based on the gross table game revenue

11

and maintain accountability for assets.

12

(15)  Ensure that recorded accountability for assets is

13

compared with actual assets at reasonable intervals and that

14

appropriate action is taken with respect to any

15

discrepancies.

16

(16)  Ensure that all functions, duties and

17

responsibilities are appropriately segregated and performed

18

in accordance with sound financial practices by competent,

19

qualified employees.

20

(17)  Permit use of its licensed facility by the board,

21

the bureau and other persons authorized by the board to

22

facilitate their ability to perform regulatory and oversight

23

functions under this chapter.

24

(c)  Submission to board.--The submission required under

25

subsection (a) shall include a detailed description of the

26

certificate holder's administrative and accounting procedures

27

related to table games, including its written system of internal

28

controls. Each written system of internal controls shall

29

include:

30

(1)  An organizational chart depicting appropriate

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1

functions and responsibilities of employees involved in both

2

the slot machine operations and table game operations.

3

(2)  A description of the duties and responsibilities of

4

each position shown on the organizational chart.

5

(3)  The record retention policy of the certificate

6

holder.

7

(4)  The procedure to be utilized to ensure that assets

8

are safeguarded, including mandatory count procedures.

9

(5)  A detailed narrative description of the

10

administrative and accounting procedures in place to ensure

11

compliance with the requirements of section 1326A (relating

12

to wagering policies).

13

(6)  A statement signed by the certificate holder's chief

14

financial officer or other competent person attesting that

15

the officer believes, in good faith, that the system

16

satisfies the requirements of this section.

17

(d)  Review.--Prior to authorizing a certificate holder to

18

conduct table games, the board shall review the system of

19

internal controls submitted under subsection (c) to determine

20

whether it conforms to the requirements of this part and whether

21

it provides adequate and effective controls for the conduct of

22

table games.

23

§ 1326A.  Wagering policies.

24

(a)  Acceptance of checks.--A certificate holder may accept a

25

check from a patron in exchange for cash or chips. The

26

certificate holder shall present each check for payment to the

27

financial institution upon which the check is drawn within ten

28

days of receipt by the certificate holder. No third party checks

29

shall be permitted.

30

(b)  Credit and other financial transactions permitted.-–A

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1

certificate holder may make credit card advances and withdrawals

2

available to patrons at its licensed facility. All fees charged

3

for cash advances, check cashing, credit card withdrawals and

4

the conversion of cash equivalents shall be disclosed.

5

Notwithstanding section 1504 (relating to wagering on credit), a

6

certificate holder may extend credit to patrons for the purpose

7

of playing slot machines or table games in accordance with this

8

section.

9

(c)  Credit applications.-–Each application for credit

10

submitted by a patron to a certificate holder shall be

11

maintained in a credit file. The application shall include the

12

patron's name, address, telephone number, comprehensive bank

13

account information, the requested credit limit, the patron's

14

approximate amount of current indebtedness, the amount and

15

source of income in support of the application, the patron's

16

signature on the application and a certification of truthfulness

17

which shall be subject to 18 Pa.C.S. § 4903 (relating to false

18

swearing). The certification holder shall notify each applicant

19

that, as a condition of receiving credit, the certificate holder

20

will verify identity and indebtedness information through a

21

credit bureau, casino credit bureau and, if appropriate, through

22

direct contact with other certificate holders.

23

(d)  Credit application verification.-–Prior to approving an

24

application for credit, a certificate holder shall verify:

25

(1)  The identity, creditworthiness and indebtedness

26

information on the application by conducting a comprehensive

27

review of the information submitted with the application and

28

any information regarding the patron's credit activity at

29

other licensed facilities which the certificate holder may

30

obtain through a casino credit bureau and, if appropriate,

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1

through direct contact with other licensed facilities.

2

(2)  That the applicant's name is not included on an

3

exclusion list under section 1514 (relating to regulation

4

requiring exclusion of certain persons) or 1516 (relating to

5

list of persons self excluded from gaming activities) or a

6

voluntary credit suspension list under subsection (h).

7

(3)  The applicant's average bank balance through direct

8

contact with a casino credit bureau, credit agency or with

9

the applicant's bank.

10

(e)  Establishment of credit.-–Each applicant's credit limit

11

shall be approved by any two or more employees of the

12

certificate holder holding the job positions of credit manager,

13

assistant credit manager, credit shift manager, credit executive

14

or a key employee in a direct reporting line above the manager

15

or credit manager. The approval shall be recorded in the

16

applicant's credit file and shall include the reasons and

17

information relied on for the approval of credit and

18

verification by the employees approving the applicant's credit

19

limit. Increases to an individual's credit limit may be approved

20

following a written request from the individual and

21

reverification of an individual's credit information.

22

(f)  Recordkeeping.-–Detailed information pertaining to all

23

transactions affecting an individual's outstanding indebtedness

24

to a certificate holder shall be recorded in chronological order

25

in the individual's credit file.

26

(g)  Suspension of credit.-–A certificate holder may reduce

27

an individual's credit limit or suspend credit to an individual

28

upon consideration of information affecting the individual's

29

creditworthiness or the individual's credit activities at the

30

licensed facility or another licensed facility. Any individual

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1

may request a certificate holder to voluntarily suspend the

2

individual's credit. Each certificate holder shall inform the

3

board when an individual requests a voluntary suspension of

4

credit and shall provide the board with all information

5

necessary to maintain the voluntary credit suspension list under

6

subsection (h).

7

(h)  Voluntary credit suspension list.--The board shall

8

maintain a voluntary credit suspension list of all persons who

9

have requested voluntary suspension of credit privileges and

10

shall provide the list on a continuous basis to the credit

11

department of each certificate holder. An individual may request

12

placement on the voluntary credit suspension list by submitting

13

to the board the individual's name, address and date of birth.

14

The individual does not need to provide a reason for the

15

request. Notwithstanding any other provision of law to the

16

contrary, the board's list of individuals who have had credit

17

privileges voluntarily suspended shall not be open to public

18

inspection, and neither the board nor the credit department of a

19

certificate holder shall divulge the names on this list to any

20

person or entity other than those provided for in this

21

subsection. To remove an individual's name from the list, the

22

individual shall submit a request to the board, which shall

23

remove the individual from the list and inform the credit

24

department of each certificate holder not later than three days

25

after the submission of the request.

26

(i)  Liability.--A certificate holder or employee thereof

27

shall not be liable to any individual on the voluntary credit

28

suspension list or to any other party in any judicial proceeding

29

for any harm, monetary or otherwise, which may arise as a result

30

of:

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1

(1)  the failure of a certificate holder to restore

2

credit privileges to an individual on the voluntary credit

3

suspension list; or

4

(2)  otherwise permitting an individual on the voluntary

5

credit suspension list to engage in gaming activity in the

6

licensed facility while on the voluntary credit suspension

7

list.

8

(j)  Checks.--Notwithstanding the provisions of any law to

9

the contrary, checks cashed in conformity with the requirements

10

of this section or 13 Pa.C.S. Div. 3 (relating to negotiable

11

instruments) shall be valid instruments, enforceable at law in

12

the courts of this Commonwealth. Any check cashed, transferred,

13

conveyed, given or accepted in violation of this section shall

14

be invalid and unenforceable for the purposes of collection by a

15

certificate holder but shall be included in the calculation of

16

gross table game revenue.

17

(k)  Tax liability.--Credit extended pursuant to this section

18

may not be claimed as a deduction, credit or any other type of

19

reduction or offset against any tax imposed by this part or the

20

act of March 4, 1971 (P.L.6, No.2), known as the Tax Reform Code

21

of 1971.

22

§ 1327A.  Key employees and occupation permits.

23

Nothing in this part shall be construed to require any

24

individual who holds a key employee or gaming employee license

25

under Chapter 13 (relating to licensees) to obtain a separate

26

license or permit to be employed in a certificate holder's table

27

game operation authorized under this chapter.

28

§ 1328A.  Amendment of statement of conditions.

29

(a)  Amendment.--Upon granting a petition for a table game

30

operation certificate, the board shall amend the slot machine

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1

licensee's statement of conditions governing the slot machine

2

license to include conditions pertaining to the requirements of

3

this part.

4

(b)  Sanctions.--A certificate holder that fails to abide by

5

this part as well as any condition contained in the licensee's

6

statement of conditions in the conduct of table games shall be

7

subject to board-imposed administrative sanctions or other

8

penalties authorized under this part.

9

§ 1329A.  Application of Clean Indoor Air Act.

10

If the board authorizes the conduct of table games in a

11

designated area other than the gaming floor, as defined in

12

section 2 of the act of June 13, 2008 (P.L.182, No.27), known as

13

the Clean Indoor Air Act, the provisions of section 3(b)(11) of

14

the Clean Indoor Air Act shall apply to that area.

15

§ 1329.1A.  Application of Liquor Code.

16

The provisions of section 493(24)(ii) of the act of April 12,

17

1951 (P.L.90, No.21), known as the Liquor Code, shall also apply

18

to table games.

19

SUBCHAPTER D

20

(RESERVED)

21

SUBCHAPTER E

22

TABLE GAME TESTING AND CERTIFICATION

23

Sec.

24

1341A.  Table game device testing and certification standards.

25

§ 1341A.  Table game device testing and certification standards.

26

(a)  Use of other state standards.--Until such time as the

27

board expands the independent testing and certification facility

28

established under section 1320(b) (relating to slot machine

29

testing and certification standards), the board may determine

30

whether the table game device testing and certification

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1

standards of another jurisdiction within the United States in

2

which an applicant for a manufacturer license is licensed are

3

comprehensive and thorough and provide similar adequate

4

safeguards as those required by this part. If the board makes

5

that determination, it may permit a manufacturer licensed

6

pursuant to section 1317.1 (relating to manufacturer licenses)

7

to deploy table game devices it manufactures which have met the

8

table game device testing and certification standards in another

9

jurisdiction without undergoing the full testing and

10

certification process by the board's independent testing and

11

certification facility.

12

(b)  Expansion of independent testing and certification

13

facility.--Within one year of the effective date of this

14

chapter, the board shall expand the independent testing and

15

certification facility created under section 1320(b) to include

16

the testing and certification of table game devices. Costs

17

associated with the expansion of the facility shall be assessed

18

on the appropriate manufacturer licensed to manufacture table

19

game devices under this part in accordance with a schedule

20

adopted by the board. The expanded facility shall be made

21

available to each table game device manufacturer and supplier as

22

determined by the board.

23

SUBCHAPTER F

24

(Reserved)

25

SUBCHAPTER G

26

TABLE GAME TAXES AND FEES

27

Sec.

28

1361A.  Table game authorization fee.

29

1362A.  Table game taxes and assessment.

30

§ 1361A.  Table game authorization fee.

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1

(a)  Imposition.--The board shall impose on each certificate

2

holder that is a Category 1 or Category 2 slot machine licensee

3

a one-time nonrefundable authorization fee in the amount of

4

$20,000,000 and on each certificate holder that is a Category 3

5

licensee a one-time nonrefundable authorization fee in the

6

amount of $7,500,000 for the privilege of conducting table

7

games.

8

(b)  Petition deadlines.--All eligible slot machine

9

licensees, whether operational or not, must submit a petition

10

and pay the authorization fee in full by June 1, 2010. This

11

subsection shall not apply to a Category 1 or Category 3 license

12

issued under section 1307 (relating to number of slot machine

13

licenses) after June 1, 2010.

14

(c)  Payment of fee.--The fee imposed under subsection (a)

15

may be paid through an installment period established by the

16

board if the authorization fee is paid in full on or before June

17

1, 2010.

18

(d)  Failure to pay by deadline.--If a petitioner or

19

certificate holder fails to pay the authorization fee in full by

20

June 1, 2010, the board shall impose a $5,000,000 penalty and

21

may grant the petitioner or certificate holder up to a six-month

22

extension to pay any remaining authorization fee and the

23

penalty. The board may require the certificate holder to remit a

24

certain amount from the daily gross table game revenue to the

25

department until the fee and penalty are fully paid.

26

(e)  Revocation of certificate.--The board shall revoke the

27

table game operation certificate if the certificate holder fails

28

to pay the total authorization fee and the penalty prior to the

29

expiration of an extension period granted under subsection (d).

30

(f)  Petitions filed after deadline.--A petitioner filing a

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1

petition after June 1, 2010, shall be required to pay an

2

additional authorization fee of $7,500,000. This subsection

3

shall not apply to a Category 1 or Category 3 slot machine

4

license issued after June 1, 2010.

5

(g)  Deposit of fees.–-Notwithstanding section 1208 (relating

6

to collection of fees and fines), all table game authorization

7

fees received by the board under subsection (a), (c) or (f) or

8

penalties received under subsection (d) and all table game

9

manufacturer and supplier license fees or manufacturer and

10

supplier renewal fees or fees for licensees issued under Chapter

11

16 (relating to junkets) shall be deposited in the General Fund.

12

§ 1362A.  Table game taxes and assessment.

13

(a)  Imposition.--Each certificate holder shall pay from its

14

daily gross table game revenue from the table games in operation

15

at its licensed facility on a form prescribed by the department

16

a tax of 34% to be deposited into the General Fund.

17

(b)  Deposits and distributions.-–

18

(1)  The tax imposed under subsection (a) and any

19

interest accrued thereon shall be payable to the department

20

on a weekly basis and shall be based upon gross table game

21

revenue derived during the previous week.

22

(2)  All funds owed to the Commonwealth under this

23

section shall be held in trust for the Commonwealth by the

24

certificate holder until the funds are paid or transferred

25

and distributed by the department. Unless otherwise agreed to

26

by the board, a certificate holder shall establish a separate

27

bank account to maintain table game revenue until such time

28

as the funds are paid or transferred under this section.

29

(c)  Deposits for property tax relief.--If, on the last day

30

of a fiscal year the balance of the Budget Stabilization Reserve

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1

Fund established pursuant to section 1701-A of the act of April

2

9, 1929 (P.L.343, No.176), known as The Fiscal Code, exceeds

3

$750,000,000, the Secretary of the Budget shall certify the

4

amount in the fund and the deposits made into the General Fund

5

pursuant to subsection (a) shall cease and thereafter be

6

deposited into the Property Tax Relief Fund established pursuant

7

to 4 Pa.C.S. § 1409 (relating to Property Tax Relief Fund).

8

Section 11.2.  Sections 1401(b), 1402(a), 1402.1, 1403(b),

9

(c)(2)(i)(D) and (E) and (ii)(D) and (3)(v), 1405 and 1406(a) of

10

Title 4 are amended to read:

11

§ 1401.  Slot machine licensee deposits.

12

* * *

13

(b)  Initial deposit of funds.--Not later than two business

14

days prior to the commencement of slot machine operations by a

15

slot machine licensee, the slot machine licensee shall deposit

16

and maintain the [sum of $5,000,000] following sums in its

17

account to guarantee the payment of funds to the Commonwealth

18

under this part and as security for its obligations under

19

section 1405 (relating to Pennsylvania Race Horse Development

20

Fund)[.]:

21

(1)  For a Category 1 or Category 2 slot machine

22

licensee, $5,000,000.

23

(2)  For a Category 3 slot machine licensee, $1,000,000.

24

No additional deposit shall be required from a slot machine

25

licensee if a slot machine licensee is granted a certificate

26

under Chapter 13A (relating to table games).

27

* * *

28

§ 1402.  Gross terminal revenue deductions.

29

(a)  Deductions.--After determining the appropriate

30

assessments for each slot machine licensee, the department shall

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1

determine costs, expenses or payments from each account

2

established under section 1401 (relating to slot machine

3

licensee deposits). The following costs and expenses shall be

4

transferred to the appropriate agency upon appropriation by the

5

General Assembly:

6

(1)  The costs and expenses to be incurred by the

7

department in administering this part at each slot machine

8

licensee's licensed facility based upon a budget submitted by

9

the department [to and approved by the board].

10

(2)  The other costs and expenses to be incurred by the

11

department in administering this part based upon a budget

12

submitted by the department [to and approved by the board].

13

(3)  Sums necessary to repay any loans made by the

14

General Fund to the department in connection with carrying

15

out its responsibilities under this part, including the costs

16

of the initial acquisition of the central control computer

17

and any accessories or associated equipment.

18

(4)  The costs and expenses to be incurred by the

19

Pennsylvania State Police and the Office of Attorney General

20

and not otherwise reimbursed under this part in carrying out

21

their respective responsibilities under this part based upon

22

a budget submitted by the Pennsylvania State Police and the

23

Attorney General [to and approved by the board].

24

(5)  Sums necessary to repay any loans made by the

25

General Fund to the Pennsylvania State Police in connection

26

with carrying out its responsibilities under this part.

27

(6)  The costs and expenses to be incurred by the board

28

in carrying out its responsibilities under this part based

29

upon a budget approved by the board.

30

(7)  Sums necessary to repay any loans made by the

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1

General Fund to the board in connection with carrying out its

2

responsibilities under this part.

3

(8)  The salaries, wages and all necessary expenses

4

incurred by the Department of the Auditor General and not

5

otherwise reimbursed under this part in conducting audits as

6

provided by law of the board or any fund created by this part

7

based upon the budget submitted by the Department of the

8

Auditor General pursuant to section 1402.1 (relating to

9

itemized budget reporting).

10

* * *

11

§ 1402.1.  Itemized budget reporting.

12

The board, department, Pennsylvania State Police [and], the

13

Attorney General and the Department of the Auditor General shall 

14

prepare and annually submit to the chairman of the

15

Appropriations Committee of the Senate and the chairman of the

16

Appropriations Committee of the House of Representatives an

17

itemized budget consisting of amounts to be appropriated out of

18

the accounts established under section 1401 (relating to slot

19

machine licensee deposits) necessary to administer this part or

20

required under section 1402(a)(8) (relating to gross terminal

21

revenue deductions).

22

§ 1403.  Establishment of State Gaming Fund and net slot machine

23

revenue distribution.

24

* * *

25

(b)  Slot machine tax.--The department shall determine and

26

each slot machine licensee shall pay a daily tax of 34% from its

27

daily gross terminal revenue from the slot machines in operation

28

at its facility and a local share assessment as provided in

29

subsection (c) into the fund. All funds owed to the Commonwealth

30

or a municipality under this section shall be held in trust by

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1

the licensed gaming entity for the Commonwealth and the

2

municipality until the funds are paid or transferred and

3

distributed. Unless otherwise agreed to by the [Gaming Board]

4

board, a licensed gaming entity shall establish a separate bank

5

account to maintain [gaming proceeds] slot machine revenue until

6

such time as [they] the funds are paid or transferred under this

7

section.

8

(c)  Transfers and distributions.--The department shall:

9

* * *

10

(2)  From the local share assessment established in

11

subsection (b), make quarterly distributions among the

12

counties hosting a licensed facility in accordance with the

13

following schedule:

14

(i)  If the licensed facility is a Category 1

15

licensed facility that is located at a harness racetrack

16

and the county, including a home rule county, in which

17

the licensed facility is located is:

18

* * *

19

(D)  (I)  A county of the third class:  Except as

20

provided in subclause (II), 2% of the gross terminal

21

revenue from each such licensed facility shall be

22

deposited into a restricted account established in

23

the Department of Community and Economic Development

24

to be used exclusively for grants for health, safety

25

and economic development projects to municipalities

26

within the county where the licensed facility is

27

located. [Municipalities that are contiguous to the

28

municipality hosting such licensed facility shall be

29

given priority by the Department of Community and

30

Economic Development in the award of such grants.] If

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1

the licensed facility is located in a first class

2

township located in a county where a third class city

3

is operating under an Optional Plan B form of

4

government pursuant to the former act of April 13,

5

1972 (P.L.184, No.62), known as the Home Rule Charter

6

and Optional Plans Law, the department shall allocate

7

funds available for grants to municipalities as

8

follows: 40% shall be awarded to cities located in

9

the county on a pro rata basis utilizing the most

10

recent United States Census bureau population figures

11

available; 35% shall be awarded to municipalities

12

contiguous to the host municipality; and 25% shall be

13

available for awards to noncontiguous municipalities

14

in the county, on a competitive basis. Grants to

15

municipalities within the county where the licensed

16

facility is located may be awarded to groups of

17

municipalities within the county to fund regional

18

projects.

19

(II)  If a licensed facility is located in

20

one of two counties of the third class where a

21

city of the third class is located in both

22

counties of the third class, the county in which

23

the licensed facility is located shall receive

24

1.2% of the gross terminal revenue to be

25

distributed as follows:  20% to the host city,

26

30% to the host county and 50% to the host county

27

for the purpose of making municipal grants within

28

the county, with priority given to municipalities

29

contiguous to the host city. The county of the

30

third class, which includes a city of the third

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1

class that is located in two counties of the

2

third class and is not the host county for the

3

licensed facility, shall receive .8% of the gross

4

terminal revenue to be distributed as follows:

5

60% to a nonhost city of the third class located

6

solely in the nonhost county in which the host

7

city of the third class is also located or 60% to

8

the nonhost city of the third class located both

9

in the host and nonhost counties of the third

10

class, 35% to the nonhost county and 5% to the

11

nonhost county for the purpose of making

12

municipal grants within the county.

13

(E)  A county of the fourth class:  2% of the

14

gross terminal revenue from each such licensed

15

facility shall be distributed as follows:

16

(I)  The department shall make quarterly

17

distributions directly to each municipality

18

within the county, except the host municipality,

19

by using a formula equaling the sum of $25,000

20

plus $10 per resident of the municipality using

21

the most recent population figures provided by

22

the Department of Community and Economic

23

Development, provided, however, that the amount

24

so distributed to any municipality shall not

25

exceed 50% of its total budget for fiscal year

26

2009, adjusted for inflation in subsequent fiscal

27

years by an amount not to exceed an annual cost-

28

of-living adjustment calculated by applying any

29

upward percentage change in the Consumer Price

30

Index immediately prior to the date the

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1

adjustment is due to take effect. Distributions

2

to a municipality in accordance with this

3

subclause shall be deposited into a special fund

4

which shall be established by the municipality.

5

The governing body of the municipality shall have

6

the right to draw upon the special fund provided

7

that the municipality identifies the fund as the

8

source of the expenditure. Each municipality

9

shall annually submit a report to the Department

10

of Community and Economic Development detailing

11

the amount and purpose of each expenditure made

12

from the special account during the prior fiscal

13

year.

14

(II)  Any funds not distributed under

15

subclause (I) shall be deposited into a

16

restricted account established in the Department

17

of Community and Economic Development to be used

18

exclusively for grants to the county, to economic

19

development authorities or redevelopment

20

authorities within the county for grants for

21

economic development projects, infrastructure

22

projects, job training, community improvement

23

projects, other projects in the public interest

24

and reasonable administrative costs. However, the

25

administrative costs shall not exceed 4% of the

26

gross terminal revenue received by the county of

27

the fourth class annually from the licensed

28

facility. Notwithstanding the provisions of the

29

act of February 9, 1999 (P.L.1, No.1), known as

30

the Capital Facilities Debt Enabling Act, grants

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1

made under this clause may be utilized as local

2

matching funds for other grants or loans from the

3

Commonwealth.

4

* * *

5

(ii)  If the licensed facility is a Category 1

6

licensed facility and is located at a thoroughbred

7

racetrack and the county in which the licensed facility

8

is located is:

9

* * *

10

(D)  A county of the third class:  1% of the

11

gross terminal revenue to the county hosting the

12

licensed facility from each such licensed facility.

13

An additional 1% of the gross terminal revenue to the

14

county hosting the licensed facility from each such

15

licensed facility for the purpose of municipal grants

16

within the county in which the licensee is located.

17

Where a licensed facility is located in a county of

18

the third class and owns land which is located in a

19

county of the fifth class that is owned by and

20

adjacent to the licensed facility and other areas

21

owned by the licensed facility, including racetracks,

22

grazing fields or any other adjoining real property,

23

the county of the fifth class shall receive a portion

24

of the gross terminal revenue distributed under this

25

clause in accordance with subparagraph (vi) as if

26

such land were part of the licensed facility.

27

* * *

28

(3)  From the local share assessment established in

29

subsection (b), make quarterly distributions among the

30

municipalities, including home rule municipalities, hosting a

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1

licensed facility in accordance with the following schedule:

2

* * *

3

(v)  To a township of the second class hosting a

4

licensed facility, other than a Category 3 licensed

5

facility, 2% of the gross terminal revenue or $10,000,000

6

annually, whichever is greater, shall be paid by each

7

licensed gaming entity operating a licensed facility

8

located in the township, subject, however, to the

9

budgetary limitation in this subparagraph. The amount

10

allocated to the designated municipalities shall not

11

exceed 50% of their total budget for fiscal year

12

2003-2004, adjusted for inflation in subsequent years by

13

an amount not to exceed an annual cost-of-living

14

adjustment calculated by applying the percentage change

15

in the Consumer Price Index immediately prior to the date

16

the adjustment is due to take effect. Any remaining money

17

shall be collected by the department from each licensed

18

gaming entity and distributed in accordance with

19

paragraph (2) based upon the classification of county

20

where the licensed facility is located. Where the

21

licensed facility is other than a Category 3 and is

22

located in more than one second class township, the

23

county commissioners of the county of the third class in

24

which the facility is located shall appoint an advisory

25

committee for the purpose of advising the county as to

26

the need for municipal grants for health, safety,

27

transportation and other projects in the public interest

28

to be comprised of two individuals from the host

29

municipality, two from contiguous municipalities within

30

the county of the third class and one from the host

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1

county. Where the licensed facility is other than a

2

Category 3 and is located in a county of the third class

3

and owns land which is located in a township of the

4

second class that is located in a county of the fifth

5

class that is owned by and adjacent to the licensed

6

facility and other areas owned by the licensed facility,

7

including racetracks, grazing fields or any other

8

adjoining real property, the township of the second class

9

in the county of the fifth class shall receive a portion

10

of the gross terminal revenue distributed under this

11

subparagraph in accordance with subparagraph (x) as if

12

such land were part of the licensed facility. A county

13

other than a county of the third class in which the

14

licensed facility is located is not required to appoint

15

an advisory committee and may use funds received under

16

this subparagraph for purposes other than municipal

17

grants. In the event that the revenues generated by the

18

2% do not meet the $10,000,000 minimum specified in this

19

subparagraph, the department shall collect the remainder

20

of the minimum amount of $10,000,000 from each licensed

21

gaming entity operating a licensed facility in the

22

township, pay any balance due to the township and

23

transfer any remainder in accordance with paragraph (2).

24

* * *

25

§ 1405.  Pennsylvania Race Horse Development Fund.

26

(a)  Fund established.--There is hereby established a

27

Pennsylvania Race Horse Development Fund within the State

28

Treasury.

29

(b)  Pennsylvania race horse improvement assessment.--Each

30

active and operating licensed gaming entity shall pay a daily

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1

assessment to the Pennsylvania Race Horse Development Fund [as

2

determined by the department. Subject to the daily assessment

3

cap established under subsection (c), the licensed gaming

4

entity's assessment shall be a percentage of each licensed

5

gaming entity's gross terminal revenue, equal to an amount

6

calculated as "A" multiplied by "B", with "A" being] equal to

7

10% of each licensed gaming entity's gross terminal revenue for

8

that day [divided by the total gross terminal revenue for that

9

day from all licensed gaming entities, and "B" being equal to

10

18% of that day's gross terminal revenue for all active and

11

operating Category 1 licensees conducting live racing].

12

[(c)  Daily assessment cap.--If the resulting daily

13

assessment for a licensed gaming entity exceeds 12% of that

14

licensed gaming entity's gross terminal revenue for the day, the

15

licensed gaming entity shall pay a daily assessment of 12% of

16

its gross terminal revenue for that day.]

17

(d)  Distributions.--In accordance with section 1406

18

(relating to distributions from Pennsylvania Race Horse

19

Development Fund), the department shall make distributions from

20

the Pennsylvania Race Horse Development Fund to each of the

21

active and operating Category 1 licensees conducting live

22

racing.

23

§ 1406.  Distributions from Pennsylvania Race Horse Development

24

Fund.

25

(a)  Distributions.--Funds from the Pennsylvania Race Horse

26

Development Fund shall be distributed to each active and

27

operating Category 1 licensee conducting live racing [in the

28

following manner] as follows:

29

(1)  [An amount equal to 18% of the daily gross terminal

30

revenue of each Category 1 licensee shall be distributed to

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1

each active and operating Category 1 licensee conducting live

2

racing unless the daily assessments are affected by the daily

3

assessment cap provided for in section 1405(c) (relating to

4

Pennsylvania Race Horse Development Fund). In cases in which

5

the daily assessment cap affects daily assessments, the

6

distribution to each active and operating Category 1 licensee

7

conducting live racing for that day shall be a percentage of

8

the total daily assessments paid into the Pennsylvania Race

9

Horse Development Fund for that day equal to the gross

10

terminal revenue of each active and operating Category 1

11

licensee conducting live racing for that day divided by the

12

total gross terminal revenue of all active and operating

13

Category 1 licensees conducting live racing for that day.

14

The] Except as provided in paragraph (2), the distributions

15

to licensed racing entities from the Pennsylvania Race Horse

16

Development Fund shall be allocated as follows:

17

(i)  Eighty percent shall be deposited weekly into a

18

separate, interest-bearing purse account to be

19

established by and for the benefit of the horsemen. The

20

earned interest on the account shall be credited to the

21

purse account. Licensees shall combine these funds with

22

revenues from existing purse agreements to fund purses

23

for live races consistent with those agreements with the

24

advice and consent of the horsemen.

25

(ii)  For thoroughbred tracks, 16% shall be deposited

26

on a monthly basis into the Pennsylvania Breeding Fund as

27

defined in section 223 of the Race Horse Industry Reform

28

Act. For standardbred tracks, 8% shall be deposited on a

29

monthly basis in the Pennsylvania Sire Stakes Fund as

30

defined in section 224 of the Race Horse Industry Reform

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1

Act, and 8% shall be deposited on a monthly basis into a

2

restricted account in the State Racing Fund to be known

3

as the Pennsylvania Standardbred Breeders Development

4

Fund. The State Harness Racing Commission shall, in

5

consultation with the Secretary of Agriculture by rule or

6

by regulation, adopt a standardbred breeders program that

7

will include the administration of Pennsylvania Stallion

8

Award, Pennsylvania Bred Award and a Pennsylvania Sired

9

and Bred Award.

10

(iii)  Four percent shall be used to fund health and

11

pension benefits for the members of the horsemen's

12

organizations representing the owners and trainers at the

13

racetrack at which the licensed racing entity operates

14

for the benefit of the organization's members, their

15

families, employees and others in accordance with the

16

rules and eligibility requirements of the organization,

17

as approved by the State Horse Racing Commission or the

18

State Harness Racing Commission. This amount shall be

19

deposited within five business days of the end of each

20

month into a separate account to be established by each

21

respective horsemen's organization at a banking

22

institution of its choice. Of this amount, $250,000 shall

23

be paid annually by the horsemen's organization to the

24

thoroughbred jockeys or standardbred drivers organization

25

at the racetrack at which the licensed racing entity

26

operates for health insurance, life insurance or other

27

benefits to active and disabled thoroughbred jockeys or

28

standardbred drivers in accordance with the rules and

29

eligibility requirements of that organization.

30

(2)  [(Reserved).] For fiscal years 2009-2010 through

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1

2012-2013, distributions to licensed racing entities from the

2

Pennsylvania Race Horse Development Fund shall be allocated

3

as follows:

4

(i)  Seventeen percent of the annual revenue

5

deposited into the Pennsylvania Race Horse Development

6

Fund shall be transferred to the General Fund. The

7

remaining amount will be distributed as follows:

8

(A)  Either 4%, or $11,000,000, whichever is

9

greater, shall be used to fund health and pension

10

benefits for the members of the horsemen's

11

organizations representing the owners and trainers at

12

the racetrack at which the licensed racing entity

13

operates for the benefit of the organization's

14

members, their families, employees and others in

15

accordance with the rules and eligibility

16

requirements of the organization, as approved by the

17

State Horse Racing Commission or the State Harness

18

Racing Commission. This amount shall be deposited

19

within five business days of the end of each month

20

into a separate account to be established by each

21

respective horsemen's organization at a banking

22

institution of its choice. Of this amount, a minimum

23

of $250,000 shall be paid annually by the horsemen's

24

organization to the thoroughbred jockeys or

25

standardbred drivers organization at the racetrack at

26

which the licensed racing entity operates for health

27

insurance, life insurance or other benefits to active

28

and disabled thoroughbred jockeys or standardbred

29

drivers in accordance with the rules and eligibility

30

requirements of that organization.

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1

(B)  The amount remaining after application of

2

clause (A) shall be distributed on a pro rata basis

3

as follows:

4

(I)  Seventy-eight percent of the remaining

5

amount shall be deposited weekly into a separate,

6

interest-bearing purse account to be established

7

by and for the benefit of the horsemen. The

8

earned interest on the account shall be credited

9

to the purse account. Licensees shall combine

10

these funds with revenues from existing purse

11

agreements to fund purses for live races

12

consistent with those agreements with the advice

13

and consent of the horsemen. The State Horse

14

Racing Commission and the State Harness Racing

15

Commission, in consultation with the Secretary of

16

Agriculture, shall adopt rules and regulations

17

relating to the conditions of live races, to

18

include races restricting entry to the

19

Pennsylvania-sired or Pennsylvania-bred horse.

20

(II)  For thoroughbred tracks, the remaining

21

17% shall be deposited on a monthly basis into

22

the Pennsylvania Breeding Fund as defined in

23

section 223 of the act of December 17, 1981

24

(P.L.435, No.135), known as the Race Horse

25

Industry Reform Act. For standardbred tracks,

26

one-half of that amount shall be deposited on a

27

monthly basis in the Pennsylvania Sire Stakes

28

Fund as defined in section 224 of the Race Horse

29

Industry Reform Act, and the other half shall be

30

deposited on a monthly basis into a restricted

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1

account in the State Racing Fund to be known as

2

the Pennsylvania Standardbred Breeders

3

Development Fund. The State Harness Racing

4

Commission shall, in consultation with the

5

Secretary of Agriculture by rule or by

6

regulation, adopt a standardbred breeders program

7

that will include the administration of

8

Pennsylvania Stallion Award, Pennsylvania Bred

9

Award and a Pennsylvania Sired and Bred Award.

10

(III)  Five percent shall be deposited weekly

11

into the State Racing Fund as defined in section

12

222 of the Race Horse Industry Reform Act.

13

(ii)  Category 1 licensees shall report annually to

14

the board and to the respective racing commission as to

15

how the introduction and expansion of enhanced gaming has

16

fulfilled the intent of this title to enhance live racing

17

and breeding in this Commonwealth. Additionally, the

18

licensees shall be required to document plans to promote

19

live handle and daily attendance at the racetrack in the

20

subsequent year.

21

* * *

22

Section 12.  Section 1407 of Title 4 is amended by adding

23

subsections to read:

24

§ 1407.  Pennsylvania Gaming Economic Development and Tourism

25

Fund.

26

* * *

27

(e)  Annual report.--The Office of the Budget in cooperation

28

with the Department of Community and Economic Development shall

29

submit an annual report of all distribution of funds under this

30

section to the chairman and minority chairman of the

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1

Appropriations Committee of the Senate, the chairman and

2

minority chairman of the Community, Economic and Recreational

3

Development Committee of the Senate, the chairman and minority

4

chairman of the Appropriations Committee of the House of

5

Representatives and the chairman and minority chairman of the

6

Gaming Oversight Committee of the House of Representatives. The

7

report shall include detailed information relating to transfers

8

made from the Pennsylvania Gaming Economic Development and

9

Tourism Fund and all reimbursements, distributions and payments

10

made under subsection (b) or the act of July 25, 2007 (P.L.342,

11

No.53), known as Pennsylvania Gaming Economic Development and

12

Tourism Fund Capital Budget Itemization Act of 2007. The report

13

shall be submitted by January 31, 2010, and by January 31 of

14

each year thereafter.

15

(f)  Local report.--A city of the first class, city of the

16

second class, county of the second class, convention center or

17

convention center authority, sports and exhibition authority of

18

a county of the second class, urban redevelopment authority,

19

airport authority or other entity that receives money from the

20

fund pursuant to an Economic Development Capital Budget under

21

subsection (b) or the act of July 25, 2007 (P.L.342, No.53),

22

known as Pennsylvania Gaming Economic Development and Tourism

23

Fund Capital Budget Itemization Act of 2007, shall submit an

24

annual report to the Office of the Budget, the chairman and

25

minority chairman of the Appropriations Committee of the Senate,

26

the chairman and minority chairman of the Community, Economic

27

and Recreational Development Committee of the Senate, the

28

chairman and minority chairman of the Appropriations Committee

29

of the House of Representatives and the chairman and the

30

minority chairman of the Gaming Oversight Committee of the House

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1

of Representatives. The report shall include detailed

2

information, including records of expenditures, payments and

3

other distributions made from money received under subsection

4

(b). The initial report shall include information on all funds

5

received prior to January 31, 2010. The report shall be

6

submitted by January 31, 2010, and by January 31 of each year

7

thereafter until all funds under this section are distributed or

8

received. An entity that receives funds after the effective date

9

of this section shall submit an initial report by January 31 of

10

the year following receipt of the funds.

11

(g)  Distribution to international airport.--Notwithstanding

12

the provisions of section 7(d) of the act of July 25, 2007

13

(P.L.342, No.53), known as the Pennsylvania Gaming Economic

14

Development and Tourism Fund Capital Budget Itemization Act of

15

2007, following the distribution of $42.5 million of funds

16

allocated to the county for debt service and economic

17

development projects for an international airport in a county of

18

the second class under section 3(2)(i)(E) of said act, all

19

remaining funds shall be distributed directly to an authority

20

that operates an international airport in a county of the second

21

class.

22

Section 13.  Section 1408(a) and (c) of Title 4 are amended

23

and the section is amended by adding a subsection to read:

24

§ 1408.  Transfers from State Gaming Fund.

25

(a)  Transfer for compulsive and problem gambling

26

treatment.--Each year, the sum of [$1,500,000] $2,000,000 or an

27

amount equal to [.001] .002 multiplied by the total gross

28

terminal revenue of all active and operating licensed gaming

29

entities, whichever is greater, shall be transferred into the

30

Compulsive and Problem Gambling Treatment Fund established in

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1

section 1509 (relating to compulsive and problem gambling

2

program).

3

(a.1)  Transfer from grant program.--No later than 60 days

4

after the effective date of this section and annually

5

thereafter, the board shall transfer or cause to be transferred

6

$3,000,000 from the grant program established in subsection (c)

7

to the Compulsive and Problem Gambling Treatment Fund

8

established under section 1509 (relating to compulsive and

9

problem gambling program) solely for the purposes of compulsive

10

and problem gambling and drug and alcohol assessment and

11

treatment.

12

* * *

13

(c)  Local law enforcement grants.--Annually, the sum of

14

$5,000,000 shall be transferred to the board for the [purpose

15

of] purposes authorized in subsection (a.1) and for issuing

16

grants to local law enforcement agencies to enforce and prevent

17

[the unlawful operation of slot machines] all forms of unlawful

18

gambling in this Commonwealth. For purposes of this subsection,

19

the term "local law enforcement agency" shall include

20

Pennsylvania State Police activities in a municipality which

21

does not have a municipal police department for activities in

22

that municipality.

23

* * *

24

Section 13.1.  Sections 1501(b) and (c), 1504 and 1505 of

25

Title 4 are amended to read:

26

§ 1501.  Responsibility and authority of department.

27

* * *

28

(b)  Application of rules and regulations.--The department

29

may prescribe the extent, if any, to which any rules and

30

regulations shall be applied without retroactive effect. The

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1

department shall have authority to prescribe the forms and the

2

system of accounting and recordkeeping to be employed and

3

through its representative shall at all times have power of

4

access to and examination and audit of any equipment and records

5

relating to all aspects of the operation of slot machines and

6

table games under this part.

7

(c)  Procedure.--For purposes of implementing this part, the

8

department may promulgate regulations in the same manner in

9

which the board is authorized as provided in section 1203

10

(relating to temporary regulations) and section 1303A (relating

11

to temporary table game regulations).

12

* * *

13

§ 1504.  Wagering on credit.

14

[Slot] Except as otherwise provided in section 1326A

15

(relating to wagering policies), slot machine licensees may not

16

extend credit. Slot machine licensees who do not hold a table

17

game operation certificate may not accept credit cards, charge

18

cards or debit cards from a player for the exchange or purchase

19

of slot machine credits or for an advance of coins or currency

20

to be utilized by a player to play slot machine games or extend

21

credit in any manner to a player so as to enable the player to

22

play slot machines. Slot machine licensees who hold a table game

23

operation certificate may extend credit for slot machine gaming

24

in accordance with section 1326A (relating to wagering

25

policies).

26

§ 1505.  No eminent domain authority.

27

Neither the Commonwealth nor any political subdivision

28

thereof shall have the right to acquire, with or without

29

compensation, through the power of eminent domain any property,

30

easement or land use right for the siting or construction of a

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1

licensed facility [for the operation of slot machines by a slot

2

machine licensee].

3

Section 13.2.  Section 1509(b) and (c) of Title 4 are amended

4

and the section is amended by adding subsections to read:

5

§ 1509.  Compulsive and problem gambling program.

6

* * *

7

(b)  Compulsive and Problem Gambling Treatment Fund.--There

8

is hereby established in the State Treasury a special fund to be

9

known as the Compulsive and Problem Gambling Treatment Fund. All

10

moneys in the fund shall be expended for programs for the

11

prevention and treatment of gambling addiction and other

12

emotional and behavioral problems associated with or related to

13

gambling addiction and for the administration of the compulsive

14

and problem gambling program. Moneys in the fund shall be

15

expended for the programs set forth in subsection (d.1)(4)(i),

16

(ii), (iii) and (iv). The fund shall consist of money annually

17

allocated to it from the annual payment established under

18

section 1408 (relating to transfers from State Gaming Fund),

19

money which may be allocated by the board, interest earnings on

20

moneys in the fund and any other contributions, payments or

21

deposits which may be made to the fund.

22

(c)  Notice of availability of assistance.--

23

(1)  Each slot machine licensee shall obtain a toll-free

24

telephone number to be used to provide persons with

25

information on assistance for compulsive or problem gambling.

26

Each licensee shall conspicuously post signs similar to the

27

following statement:

28

If you or someone you know has a gambling problem, help

29

is available. Call (Toll-free telephone number).

30

The signs must be posted within 50 feet of each entrance and

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1

exit and within 50 feet of each automated teller machine

2

location within the licensed facility.

3

(2)  Each racetrack where slot machines or table games 

4

are operated shall print a statement on daily racing programs

5

provided to the general public that is similar to the

6

following:

7

If you or someone you know has a gambling problem, help

8

is available. Call (Toll-free telephone number).

9

(3)  A licensed facility which fails to post or print the

10

warning sign in accordance with paragraph (1) or (2) shall be

11

assessed a fine of $1,000 a day for each day the sign is not

12

posted or printed as provided in this subsection.

13

* * *

14

(d.1)  Addiction treatment and assessment.--

15

(1)  The General Assembly recognizes that the expansion

16

of casino-styling gaming in this Commonwealth requires an

17

enhanced awareness of compulsive and problem gambling and the

18

need to develop and implement effective strategies for

19

prevention, assessment and treatment of this behavioral

20

disorder. The General Assembly further recognizes that,

21

according to research, compulsive and problem gambling may

22

overlap with drug and/or alcohol addiction. Therefore, it is

23

the intent of the General Assembly to establish an approach

24

to compulsive and problem gambling prevention, assessment and

25

treatment that will ensure the provision of adequate

26

resources to identify, assess and treat compulsive and

27

problem gambling and drug and/or alcohol addiction.

28

(2)  The sum of $3,000,000 shall be annually transferred

29

from the Compulsive and Problem Gambling Treatment Fund to

30

the Department of Health for allocation to the single county

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1

authorities. The moneys so transferred and allocated shall be

2

used by the single county authorities for compulsive and

3

problem gambling and associated drug and/or alcohol addiction

4

assessments and for the related addiction treatment in

5

nonhospital residential detoxification facilities,

6

nonhospital residential rehabilitation facilities and halfway

7

houses licensed by the Department of Health to provide

8

addiction treatment services. Financial counseling may be a

9

required component of treatment, whether it is provided

10

directly by the treatment service provider or subcontracted

11

to a third party. No moneys authorized to be transferred

12

under this subsection shall be utilized to supplant other

13

funding for the treatment of drug and/or alcohol addiction.

14

(3)  Eligibility to receive treatment services for

15

treatment of compulsive and problem gambling, and drug and/or

16

alcohol addiction associated or related to compulsive and

17

problem gambling under paragraph (1), shall be determined

18

using financial eligibility and other requirements of the

19

single county authorities as approved by the Department of

20

Health.

21

(4)  Within 60 days of the effective date of this

22

subsection, the Department of Health's Bureau of Drug and

23

Alcohol Programs and the board's Office of Compulsive and

24

Problem Gambling shall collaborate with providers and other

25

persons or entities with expertise in the field of compulsive

26

and problem gambling to:

27

(i)  Develop and implement a strategic plan for the

28

prevention and treatment of compulsive and problem

29

gambling and associated behavior disorders, including

30

drug and/or alcohol addictions.

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1

(ii)  Adopt compulsive and problem gambling treatment

2

standards to be integrated with the Bureau of Drug and

3

Alcohol Program's uniform Statewide guidelines that

4

govern the provision of addiction treatment services. The

5

standards may provide criteria for the certification of

6

compulsive and problem gambling counselors.

7

(iii)  Develop, in collaboration with the appropriate

8

State agencies, a method to link compulsive and problem

9

gambling data collection and referral information to

10

crisis response hotlines and youth and domestic violence

11

programs or providers.

12

(iv)  Collaborate with the Department of Health, the

13

Department of Aging and other appropriate offices and

14

agencies of State or local government and persons and

15

entities, public or private, with expertise in compulsive

16

and problem gambling treatment to educate youth and older

17

Pennsylvanians through prevention training and materials

18

regarding the prevention, recognition and treatment of

19

compulsive and problem gambling problems. The Bureau of

20

Drug and Alcohol Programs and the board's Office of

21

Compulsive and Problem Gambling shall work with the

22

identified agencies and other agencies and entities to

23

develop demographic-specific compulsive and problem

24

gambling prevention, intervention and treatment programs.

25

(d.2)  Report.--Beginning October 1, 2010, and every October

26

1 thereafter, the Bureau of Drug and Alcohol Programs and the

27

board's Office of Compulsive and Problem Gambling shall jointly

28

submit an annual report to the Governor and the General Assembly

29

reporting data and progress on and activities initiated to

30

facilitate the development and implementation of the strategic

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1

plan for the prevention and treatment of compulsive and problem

2

gambling and associated behavior disorders and addictions and

3

the other requirements of this section.

4

* * *

5

Section 13.3.  Sections 1510(a), 1511(b) and 1512(a.1), (a.5)

6

and (b) of Title 4 are amended to read:

7

§ 1510.  Labor hiring preferences.

8

(a)  Category 1, 2, and 3 licensed facilities, generally.--

9

Each licensed gaming entity shall prepare a hiring plan for

10

employees of its respective licensed facility which promotes a

11

diverse work force, minority participation and personnel from

12

within the surrounding geographical area. The hiring plan shall

13

be approved by the board and shall be consistent with the goals

14

outlined in sections 1212 (relating to diversity goals of board)

15

and 1304A (relating to Commonwealth resident employment goals).

16

* * *

17

§ 1511.  Declaration of exemption from Federal laws prohibiting

18

slot machines.

19

* * *

20

(b)  Legal shipments.--All shipments of [slot machines] 

21

gambling devices, as defined in section 1 of the Gambling

22

Devices Transportation Act (64 Stat. 1134, 15 U.S.C. § 1171), 

23

into this Commonwealth, the registering, recording and labeling

24

of which has been effected by the manufacturer and supplier of

25

those devices, in accordance with sections [5 and 7] 3 and 4 of

26

the Gambling Devices Transportation Act (64 Stat. 1134, 15

27

U.S.C. §§ [1175 and 1177] 1173 and 1174), shall be deemed legal

28

shipments of [slot machines] gambling devices into this

29

Commonwealth.

30

§ 1512.  Financial and employment interests.

- 183 -

 


1

* * *

2

(a.1)  Employment.--Except as may be provided by rule or

3

order of the Pennsylvania Supreme Court and except as provided

4

in section 1512.1 (relating to additional restrictions), no

5

executive-level public employee, public official or party

6

officer, or an immediate family member thereof, shall be

7

employed by an applicant or a slot machine licensee,

8

manufacturer licensee, supplier licensee or licensed racing

9

entity, or by any holding company, affiliate, intermediary or

10

subsidiary thereof, while the individual is an executive-level

11

public employee, public official or party officer and for one

12

year following termination of the individual's status as an

13

executive-level public employee, public official or party

14

officer.

15

* * *

16

(a.5)  State Ethics Commission.--The State Ethics Commission

17

shall publish a list of all State, county, municipal and other

18

government positions that meet the definitions of "public

19

official" as defined under subsection (b) or "executive-level

20

public employee" [under subsection (b)] and a list of

21

individuals subject to section 1512.1. The Office of

22

Administration shall assist the [Ethics Commission] commission 

23

in the development of the list, which shall be published in the

24

Pennsylvania Bulletin biennially and on the board's website.

25

Upon request, each public official shall have a duty to provide

26

the [Ethics Commission] commission with adequate information to

27

accurately develop and maintain the list. The [Ethics

28

Commission] commission may impose a civil penalty under 65

29

Pa.C.S. § 1109(f) (relating to penalties) upon any individual,

30

including any public official or executive-level public employee

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1

who fails to cooperate with the [Ethics Commission] commission 

2

under this subsection. An individual who relies in good faith on

3

the list published by the commission shall not be subject to any

4

penalty for a violation of this section.

5

(b)  Definitions.--As used in this section, the following

6

words and phrases shall have the meanings given to them in this

7

subsection:

8

["Executive-level public employee."  The term shall include

9

the following:

10

(1)  Deputy Secretaries of the Commonwealth and the

11

Governor's Office executive staff.

12

(2)  An employee of the Executive Branch with

13

discretionary power which may affect or influence the outcome

14

of a State agency's action or decision and who is involved in

15

the development of regulations or policies relating to a

16

licensed entity or who is involved in other matters under

17

this part. The term shall include an employee with law

18

enforcement authority.

19

(3)  An employee of a county or municipality with

20

discretionary powers which may affect or influence the

21

outcome of the county's or municipality's action or decision

22

and who is involved in the development of law, regulation or

23

policy relating to a licensed entity or who is involved in

24

other matters under this part. The term shall include an

25

employee with law enforcement authority.

26

(4)  An employee of a department, agency, board,

27

commission, authority or other governmental body not included

28

in paragraph (1), (2) or (3) with discretionary power which

29

may affect or influence the outcome of the governmental

30

body's action or decision and who is involved in the

- 185 -

 


1

development of regulation or policy relating to a licensed

2

entity or who is involved in other matters under this part.

3

The term shall include an employee with law enforcement

4

authority.]

5

"Financial interest."  Owning or holding, or being deemed to

6

hold, debt or equity securities or other ownership interest or

7

profits interest. A financial interest shall not include any

8

debt or equity security, or other ownership interest or profits

9

interest, which is held or deemed to be held in any of the

10

following:

11

(1)  A blind trust over which the executive-level public

12

employee, public official, party officer or immediate family

13

member thereof may not exercise any managerial control or

14

receive income during the tenure of office and the period

15

under subsection (a). The provisions of this paragraph shall

16

apply only to blind trusts established prior to the effective

17

date of this paragraph.

18

(2)  Securities that are held in a pension plan, profit-

19

sharing plan, individual retirement account, tax-sheltered

20

annuity, a plan established pursuant to section 457 of the

21

Internal Revenue Code of 1986 (Public Law 99-514, 26 U.S.C. §

22

1 et seq.) or any successor provision deferred compensation

23

plan whether qualified or not qualified under the Internal

24

Revenue Code of 1986 or any successor provision or other

25

retirement plan that:

26

(i)  is not self-directed by the individual; and

27

(ii)  is advised by an independent investment adviser

28

who has sole authority to make investment decisions with

29

respect to contributions made by the individual to these

30

plans.

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1

(3)  A tuition account plan organized and operated

2

pursuant to section 529 of the Internal Revenue Code of 1986

3

(Public Law 99-514, 26 U.S.C. § 529) that is not self-

4

directed by the individual.

5

(4)  A mutual fund where the interest owned by the mutual

6

fund in a licensed entity does not constitute a controlling

7

interest as defined in this part.

8

"Immediate family."  A spouse, minor child or unemancipated

9

child.

10

"Law enforcement authority."  The power to conduct

11

investigations of or to make arrests for criminal offenses.

12

"Party officer."  A member of a national committee; a

13

chairman, vice chairman, secretary, treasurer or counsel of a

14

State committee or member of the executive committee of a State

15

committee; a county chairman, vice chairman, counsel, secretary

16

or treasurer of a county committee in which a licensed facility

17

is located; or a city chairman, vice chairman, counsel,

18

secretary or treasurer of a city committee of a city in which a

19

licensed facility is located.

20

"Public official."  The term shall include the following:

21

(1)  The Governor, Lieutenant Governor, a member of the

22

Governor's cabinet, Treasurer, Auditor General and Attorney

23

General of the Commonwealth.

24

(2)  A member of the Senate or House of Representatives

25

of the Commonwealth.

26

(3)  An individual elected or appointed to any office of

27

a county or municipality that directly receives a

28

distribution of revenue under this part.

29

(4)  An individual elected or appointed to a department,

30

agency, board, commission, authority or other governmental

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1

body not included in paragraph (1), (2) or (3) that directly

2

receives a distribution of revenue under this part.

3

(5)  An individual elected or appointed to a department,

4

agency, board, commission, authority, county, municipality or

5

other governmental body not included in paragraph (1), (2) or

6

(3) with discretionary power which may influence or affect

7

the outcome of an action or decision and who is involved in

8

the development of regulation or policy relating to a

9

licensed entity or who is involved in other matters under

10

this part.

11

The term does not include a member of a school board or an

12

individual who held an uncompensated office with a governmental

13

body prior to January 1, 2006, and who no longer holds the

14

office as of January 1, 2006. The term includes a member of an

15

advisory board or commission which makes recommendations

16

relating to a licensed facility.

17

Section 14.  Title 4 is amended by adding a section to read:

18

§ 1512.1.  Additional restrictions.

19

(a)  Restrictions.--An individual member of the Pennsylvania

20

State Police or employee of the Office of Attorney General,

21

Office of the Auditor General or department whose duties

22

substantially involve licensing or enforcement, the development

23

of laws, regulations or policy or who has other discretionary

24

authority which may affect the gaming industry in this

25

Commonwealth under this part shall not do any of the following:

26

(1)  Accept employment with an applicant or licensed

27

entity, or an affiliate, intermediary, subsidiary or holding

28

company thereof, for a period of two years after the

29

termination of the employment relating to the conduct of

30

gaming.

- 188 -

 


1

(2)  Appear before the board in any hearing or proceeding

2

or participate in any other activity on behalf of any

3

applicant, licensee, permittee or licensed entity, or an

4

affiliate, intermediary, subsidiary or holding company

5

thereof, for a period of two years after termination of the

6

employment. Nothing shall prevent a current or former trooper

7

or employee subject to this section from appearing in any

8

proceeding as a witness where the employee is being called to

9

testify concerning any fact or information obtained during

10

the course of employment or related to the performance of

11

duties while so employed.

12

(3)  As a condition of employment, an individual subject

13

to this paragraph shall sign an affidavit that the individual

14

will not accept employment with or be retained by any

15

applicant, licensed entity or an affiliate, intermediary,

16

subsidiary or holding company thereof for a period of two

17

years from the termination of employment.

18

(b)  Employment or retention.--An applicant or licensed

19

entity or an affiliate, intermediary, subsidiary or holding

20

company thereof shall not employ or retain an individual who

21

signed an affidavit required by this subsection. An applicant or

22

licensed entity or an affiliate, intermediary, subsidiary or

23

holding company that knowingly employs or retains an individual

24

in violation of this subsection shall be subject to a penalty

25

under section 1518(c) (relating to prohibited acts; penalties).

26

(c)  Violation.--If an employee or independent contractor of

27

the board violates any provision of this section, the employing

28

agency or department may, upon notice and hearing, terminate the

29

employment, and the person shall be ineligible for future

30

employment with the agency or department and shall be prohibited

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1

from applying for a license or permit, becoming an independent

2

contractor or registering as a licensed entity representative

3

for a period of five years from the date of termination of the

4

employment or contract.

5

(d)  Code of conduct.--The Pennsylvania State Police,

6

Attorney General, Auditor General and department shall adopt a

7

comprehensive code of conduct which shall supplement all other

8

requirements under this part and 65 Pa.C.S. Pt. II (relating to

9

accountability), as applicable, and shall provide guidelines

10

applicable to members, employees and any independent contractors

11

of the agency, department or office whose duties involve the

12

enforcement or regulation of gaming under this part and the

13

immediate families of these members, as defined in section

14

1202.1(e) (relating to code of conduct), employees and

15

independent contractors to enable them to avoid any perceived or

16

actual conflict of interest and to promote public confidence in

17

the integrity and impartiality of gaming enforcement and

18

regulation. At a minimum, the code of conduct adopted under this

19

section shall include the restrictions applicable to the board

20

under section 1202.1(c), except that the restrictions under

21

section 1202.1(c)(5) shall not apply to an elected Attorney

22

General or Auditor General.

23

Section 14.1.  Sections 1513(c) and 1514(b), (f), (g) and (h)

24

of Title 4 are amended to read:

25

§ 1513.  Political influence.

26

* * *

27

(c)  Penalties.--The first violation of this section by a

28

licensed gaming entity or any person that holds a controlling

29

interest in such gaming entity, or a subsidiary company thereof,

30

and any officer, director or management-level employee of such

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1

licensee shall be punishable by a fine of not less than an

2

average single day's gross terminal revenue of the licensed

3

gaming entity derived from the operation of slot machines and

4

gross table game revenue from the operation of table games in

5

this Commonwealth; a second violation of this section, within

6

five years of the first violation, shall be punishable by at

7

least a one-day suspension of the license held by the licensed

8

gaming entity and a fine not less than an average two days'

9

gross revenue of the licensed gaming entity; a third violation

10

of this section within five years of the second violation shall

11

be punishable by the immediate revocation of the license held by

12

the licensed gaming entity. The first violation of this section

13

by a manufacturer or supplier licensed pursuant to this part or

14

by any person that holds a controlling interest in such

15

manufacturer or supplier, or a subsidiary company thereof, and

16

any officer, director or management-level employee of such a

17

licensee shall be punishable by a fine of not less than one

18

day's average of the gross profit from sales made by the

19

manufacturer or supplier in Pennsylvania during the preceding

20

12-month period or portion thereof in the event the manufacturer

21

or supplier has not operated in Pennsylvania for 12 months; a

22

second violation of this section within five years of the first

23

violation shall be punishable by a one-month suspension of the

24

license held by the manufacturer or supplier and a fine of not

25

less than two times one day's average of the gross profit from

26

sales made by the manufacturer or supplier in Pennsylvania

27

during the preceding 12-month period or portion thereof in the

28

event the manufacturer or supplier has not operated in

29

Pennsylvania for 12 months. In no event shall the fine imposed

30

under this section be in an amount less than $50,000 for each

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1

violation. In addition to any fine or sanction that may be

2

imposed by the board, any person who makes a contribution in

3

violation of this section commits a misdemeanor of the third

4

degree.

5

* * *

6

§ 1514.  Regulation requiring exclusion of certain persons.

7

* * *

8

(b)  Categories to be defined.--The board shall promulgate

9

definitions establishing those categories of persons who shall

10

be excluded pursuant to this section, including cheats and

11

persons whose privileges for licensure, certification, permit or

12

registration have been revoked.

13

* * *

14

(f)  Notice.--Whenever the [board places] bureau seeks to

15

place the name of any person on a list pursuant to this section,

16

the [board] bureau shall serve notice of this fact to such

17

person by personal service or certified mail at the last known

18

address of the person. The notice shall inform the individual of

19

the right to request a hearing under subsection (g).

20

(g)  Hearing.--Within 30 days after receipt of notice in

21

accordance with subsection (f), the person named for exclusion

22

or ejection may demand a hearing before the board, at which

23

hearing the [board] bureau shall have the affirmative obligation

24

to demonstrate that the person named for exclusion or ejection

25

satisfies the criteria for exclusion established by this section

26

and the board's regulations. Failure of the person to demand a

27

hearing within 30 days after service shall be deemed an

28

admission of all matters and facts alleged in the [board's] 

29

bureau's notice and shall preclude [a] the person from having an

30

administrative hearing, but shall in no way affect the right to

- 192 -

 


1

judicial review as provided in this section.

2

(h)  Review.--If, upon completion of a hearing on the notice

3

of exclusion or ejection, the board determines that placement of

4

the name of the person on the exclusion list is appropriate, the

5

board shall make and enter an order to that effect, which order

6

shall be served on all [slot machine licensees] licensed gaming

7

entities. The order shall be subject to review by the

8

Commonwealth Court in accordance with the rules of court.

9

Section 14.2.  Title 4 is amended by adding a section to

10

read:

11

§ 1516.1.  Prosecutorial and adjudicatory functions.

12

The board shall adopt regulations and procedures necessary to

13

ensure that the Bureau of Investigations and Enforcement is a

14

distinct entity and to prevent commingling of the investigatory

15

and prosecutorial functions of the Bureau of Investigations and

16

Enforcement under section 1517 (relating to investigations and

17

enforcement) and the adjudicatory functions of the board.

18

Section 15.  Section 1517(a.1)(6), (b)(1), (c)(12) and (e)(1)

19

of Title 4 are amended, subsection (a.2)(1) is amended by adding

20

a subparagraph and subsection (c) is amended by adding a

21

paragraph to read:

22

§ 1517.  Investigations and enforcement.

23

* * *

24

(a.1)  Powers and duties of bureau.--The Bureau of

25

Investigations and Enforcement shall have the following powers

26

and duties:

27

* * *

28

(6)  Conduct [audits] reviews of a licensed entity as

29

necessary to ensure compliance with this part. [An audit] A

30

review may include the review of accounting, administrative

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1

and financial records, management control systems, procedures

2

and other records utilized by a licensed entity.

3

* * *

4

(a.2)  Office of Enforcement Counsel.--

5

(1)  There is established within the bureau an Office of

6

Enforcement Counsel which shall act as the prosecutor in all

7

noncriminal enforcement actions initiated by the bureau under

8

this part and shall have the following powers and duties:

9

* * *

10

(iv)  Petition the board for the appointment of a

11

trustee under section 1332 (relating to appointment of

12

trustee).

13

* * *

14

(b)  Powers and duties of department.--

15

(1)  The department shall at all times have the power of

16

access to examination and audit of any equipment and records

17

relating to all aspects of the operation of slot machines or

18

table games under this part.

19

* * *

20

(c)  Powers and duties of the Pennsylvania State Police.--The

21

Pennsylvania State Police shall have the following powers and

22

duties:

23

* * *

24

(12)  Conduct audits or verification of information of

25

slot machine or table game operations at such times, under

26

such circumstances and to such extent as the bureau

27

determines. This paragraph includes reviews of accounting,

28

administrative and financial records and management control

29

systems, procedures and records utilized by a slot machine

30

licensee.

- 194 -

 


1

* * *

2

(14)  By March 1 of each year, the Commissioner of the

3

Pennsylvania State Police shall submit a report to the

4

Appropriations Committee of the Senate, the Community,

5

Economic and Recreational Development Committee of the

6

Senate, the Appropriations Committee of the House of

7

Representatives and the Gaming Oversight Committee of the

8

House of Representatives. The report shall summarize law

9

enforcement activities at each licensed facility during the

10

previous calendar year and shall include all of the

11

following:

12

(i)  The number of arrests at each licensed facility.

13

(ii)  A list of specific offenses charged for each

14

offense.

15

(iii)  The number of criminal prosecutions resulting

16

from arrests.

17

(iv)  The number of convictions resulting from

18

prosecutions.

19

(v)  The number of Pennsylvania State Police troopers

20

assigned to each licensed facility and to the gaming unit

21

at the Pennsylvania State Police headquarters.

22

(vi)  The number and nature of disciplinary actions

23

taken and complaints made against Pennsylvania State

24

Police troopers in a licensed facility.

25

(vii)  The closest local police station, Pennsylvania

26

State Police station and regional Pennsylvania State

27

Police headquarters to each licensed facility.

28

* * *

29

(e)  Inspection, seizure and warrants.--

30

(1)  The bureau, the department and the Pennsylvania

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1

State Police shall have the authority without notice and

2

without warrant to do all of the following in the performance

3

of their duties:

4

(i)  Inspect and examine all premises where slot

5

machine or table game operations are conducted, gaming

6

devices or equipment are manufactured, sold, distributed

7

or serviced or where records of these activities are

8

prepared or maintained.

9

(ii)  Inspect all equipment and supplies in, about,

10

upon or around premises referred to in subparagraph (i).

11

(iii)  Seize, summarily remove and impound equipment

12

and supplies from premises referred to in subparagraph

13

(i) for the purposes of examination and inspection.

14

(iv)  Inspect, examine and audit all books, records

15

and documents pertaining to a slot machine licensee's

16

operation.

17

(v)  Seize, impound or assume physical control of any

18

book, record, ledger, game, device, cash box and its

19

contents, counting room or its equipment or slot machine

20

or table game operations.

21

* * *

22

Section 16.  Section 1517.2 of Title 4 is amended to read:

23

§ 1517.2.  Conduct of [public officials and] board employees.

24

(a)  [Ex parte discussion prohibited.--An attorney

25

representing the bureau or the Office of Enforcement Counsel, or

26

an employee of the bureau or office involved in the hearing

27

process, shall not discuss the case ex parte with a hearing

28

officer, chief counsel or member] (Reserved).

29

(b)  [Other prohibitions.--A hearing officer, the chief

30

counsel or a member shall not discuss or exercise any

- 196 -

 


1

supervisory responsibility over any employee with respect to an

2

enforcement hearing with which the employee is involved]

3

(Reserved).

4

(c)  Disqualification.--If it becomes necessary for the chief

5

counsel or member to become involved on behalf of the board in

6

any enforcement proceeding, the chief counsel or member shall be

7

prohibited from participating in the adjudication of that matter

8

and shall designate appropriate individuals to exercise

9

adjudicatory functions.

10

Section 16.1.  Section 1518(a)(2), (3), (4), (5), (7), (8),

11

(11) and (13) and (c)(1)(v) and (3) of Title 4 are amended,

12

subsections (a) and (b) are amended by adding paragraphs and the

13

section is amended by adding subsections to read:

14

§ 1518.  Prohibited acts; penalties.

15

(a)  Criminal offenses.--

16

* * *

17

(2)  It shall be unlawful for a person to willfully:

18

(i)  fail to report, pay or truthfully account for

19

and pay over any license fee, authorization fee, tax or

20

assessment imposed under this part; or

21

(ii)  attempt in any manner to evade or defeat any

22

license fee, authorization fee, tax or assessment imposed

23

under this part.

24

(3)  It shall be unlawful for any licensed entity, gaming

25

employee, key employee or any other person to permit a slot

26

machine, table game or table game device to be operated,

27

transported, repaired or opened on the premises of a licensed

28

facility by a person other than a person licensed or

29

permitted by the board pursuant to this part.

30

(4)  It shall be unlawful for any licensed entity or

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1

other person to manufacture, supply or place slot machines,

2

table games or table game devices into play or display slot

3

machines, table games or table game devices on the premise of

4

a licensed facility without the authority of the board.

5

(5)  Except as provided for in section 1326 (relating to

6

license renewals), it shall be unlawful for a licensed entity

7

or other person to manufacture, supply, operate, carry on or

8

expose for play any slot machine, table game or table game

9

device after the person's license has expired and prior to

10

the actual renewal of the license.

11

* * *

12

(7)  (i)  Except as set forth in subparagraph (ii), it

13

shall be unlawful for an individual to use or possess a

14

cheating or thieving device, counterfeit or altered

15

billet, ticket, token or similar objects accepted by a

16

slot machine or counterfeit or altered slot machine-

17

issued tickets or vouchers at a licensed facility.

18

(ii)  An authorized employee of a licensee or an

19

employee of the board may possess and use a cheating or

20

thieving device, counterfeit or altered billet, ticket,

21

token or similar objects accepted by a slot machine or

22

counterfeit or altered slot machine-issued tickets or

23

vouchers in performance of the duties of employment.

24

[(iii)  As used in this paragraph, the term "cheating

25

or thieving device" includes, but is not limited to, a

26

device to facilitate the alignment of any winning

27

combination or to remove from any slot machine money or

28

other contents. The term includes, but is not limited to,

29

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

30

or wire and any electronic or magnetic device.]

- 198 -

 


1

(7.1)  It shall be unlawful for an individual to do any

2

of the following:

3

(i)  Use or possess counterfeit, marked, loaded,

4

tampered with or altered chips or other cheating devices

5

in the conduct of gaming under this part, except that an

6

authorized employee of a licensee or an authorized

7

employee of the board may possess and use counterfeit

8

chips, cards or dice that have been marked, loaded or

9

tampered with, or other cheating devices in performance

10

of the duties of employment for training or testing

11

purposes only.

12

(ii)  Knowingly, by a trick or sleight of hand

13

performance or by fraud or fraudulent scheme, cards, dice

14

or device, for themselves or for another, win or attempt

15

to win money or property at a licensed facility or a

16

representation of either or reduce or attempt to reduce a

17

losing wager.

18

(8)  (i)  Except as set forth in subparagraph (ii), it

19

shall be unlawful for an individual to knowingly possess

20

or use while on the premises of a licensed facility a key

21

or device designed for the purpose of and suitable for

22

opening or entering any slot machine, drop box or coin

23

box which is located on the premises of the licensed

24

facility.

25

(ii)  An authorized employee of a licensee or a

26

member of the board may possess and use a device referred

27

to in subparagraph (i) in the performance of the duties

28

of employment.

29

* * *

30

(11)  It shall be unlawful for a licensed gaming entity

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1

that is a licensed racing entity and that has lost the

2

license issued to it by either the State Horse Racing

3

Commission or the State Harness Racing Commission under the

4

Race Horse Industry Reform Act or that has had that license

5

suspended to operate slot machines or table games at the

6

racetrack for which its slot machine license was issued

7

unless the license issued to it by either the State Horse

8

Racing Commission or the State Harness Racing Commission will

9

be subsequently reissued or reinstated within 30 days after

10

the loss or suspension.

11

* * *

12

(13)  It shall be unlawful for any person under 18 years

13

of age to be permitted in the area of a licensed facility

14

where slot machines or table games are operated.

15

(14)  It shall be unlawful for any key employee, boxman,

16

floorman or any other casino employee who serves in a

17

supervisory position to solicit or accept and for any other

18

gaming employee to solicit any tip or gratuity from any

19

player or patron at the licensed facility where the person is

20

employed.

21

(15)  It shall be unlawful for a licensed gaming entity

22

to require a wager to be greater than the stated minimum or

23

less than the stated maximum. However, a wager made by a

24

patron and not rejected by a licensed gaming entity prior to

25

commencement of play shall be treated as a valid wager. A

26

wager accepted by a dealer shall be paid or lost in its

27

entirety in accordance with the rules of the game,

28

notwithstanding that the wager exceeded the current table

29

maximum wager or was lower than the current table minimum

30

wager.

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1

(16)  A person that engages in conduct prohibited by 18

2

Pa.C.S. § 6308 in a licensed facility commits an offense.

3

(17)  It shall be unlawful for any person to claim,

4

collect or take, or attempt to claim, collect or take, money

5

or anything of value in or from a slot machine, table game or

6

table game device, with intent to defraud, or to claim,

7

collect or take an amount greater than the amount won, or to

8

manipulate with the intent to cheat, any component of any

9

slot machine, table game or table game device in a manner

10

contrary to the designed and normal operational purpose.

11

(b)  Criminal penalties and fines.--

12

* * *

13

(3)  A person that violates subsection (a)(2), (3), (4),

14

(5), (6), (7), (7.1), (8), (9), (10), (11), (12), (14), (15)

15

or (17) commits a misdemeanor of the first degree. A person

16

that is convicted of a second or subsequent violation of

17

subsection (a)(2), (3), (4), (5), (6), (7), (7.1), (8), (9),

18

(10), (11), (12) or (17) commits a felony of the second

19

degree.

20

(4)  A person that commits an offense in violation of

21

subsection (a)(13) commits a summary offense and upon

22

conviction of a first offense shall be sentenced to pay a

23

fine of not less than $200 nor more than $1,000. A person

24

that is convicted of a second or subsequent offense shall be

25

sentenced to pay a fine of not less than $500 nor more than

26

$1,500. In addition to the fine imposed, any person convicted

27

of an offense under subsection (a)(13) may be sentenced to

28

perform a period of community service not to exceed 40 hours.

29

(5)  A person that commits an offense in violation of

30

subsection (a)(16) commits an offense to be graded in

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1

accordance with 18 Pa.C.S. § 6308 (relating to purchase,

2

consumption, possession or transportation of liquor or malt

3

or brewed beverages) and shall be subject to the same

4

penalties imposed pursuant to 18 Pa.C.S. §§ 6308 and 6310.4

5

(relating to restriction of operating privileges) except that

6

the fine imposed for a violation of subsection (a)(16) shall

7

be not less than $350 nor more than $1,000. The police

8

department making an arrest for a suspected violation of

9

subsection (a)(16) shall notify the parents or guardian of

10

the minor charged.

11

(c)  Board-imposed administrative sanctions.--

12

(1)  In addition to any other penalty authorized by law,

13

the board may impose without limitation the following

14

sanctions upon any licensee or permittee:

15

* * *

16

(v)  Suspend the license of any licensed gaming

17

entity for violation of or attempting to violate any

18

provisions of this part or regulations promulgated under

19

this part relating to its slot machine or table game 

20

operations.

21

* * *

22

(3)  In addition to any other fines or penalties that the

23

board may impose under this part or regulation, if a person

24

violates subsection (a)(2), the board shall impose an

25

administrative penalty of three times the amount of the

26

license fee, authorization fee, tax or other assessment

27

evaded and not paid, collected or paid over. This subsection

28

is subject to 2 Pa.C.S. Chs. 5 Subch. A and 7 Subch. A.

29

(d)  Aiding and abetting.--A person who aids, abets,

30

counsels, commands, induces, procures or causes another person

- 202 -

 


1

to violate a provision of this part shall be subject to all

2

sanctions and penalties, both civil and criminal, provided under

3

this part.

4

(e)  Continuing offenses.--A violation of this part that is

5

determined to be an offense of a continuing nature shall be

6

deemed to be a separate offense on each event or day during

7

which the violation occurs. Nothing in this section shall be

8

construed to preclude the commission of multiple violations of

9

the provisions of this part in any one day that establish

10

offenses consisting of separate and distinct acts or violations

11

of the provisions of this part or regulations promulgated under

12

this part.

13

(f)  Property subject to seizure, confiscation, destruction

14

or forfeiture.--Any equipment, device or apparatus, money,

15

material, gaming proceeds or substituted proceeds or real or

16

personal property used, obtained or received or any attempt to

17

use, obtain or receive the device, apparatus, money, material,

18

proceeds or real or personal property in violation of this part

19

shall be subject to seizure, confiscation, destruction or

20

forfeiture.

21

Section 17.  Title 4 is amended by adding sections to read:

22

§ 1518.1.  Additional authority.

23

(a)  General rule.--The chief enforcement counsel may

24

petition the Commonwealth Court for authorization to review or

25

obtain information in the possession of an agency in this

26

Commonwealth by averring that the bureau believes the agency has

27

in its possession information material to an investigation or

28

inquiry being conducted by the bureau pursuant to this part and

29

that disclosure or release is in the best interest of the

30

Commonwealth. The petition shall request that the court enter a

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1

rule upon the agency to show cause why the agency should not be

2

directed to disclose to the bureau or identified agents thereof,

3

information in its possession about any matter under the

4

jurisdiction of the bureau or the board pursuant to this part.

5

If a respondent is a local agency, a copy of any rule issued

6

pursuant to this section shall be provided to the district

7

attorney of the county in which the local agency is located.

8

Upon request of a local agency, the district attorney may elect

9

to enter an appearance to represent the local agency in the

10

proceedings.

11

(b)  Procedure.--The filing of a petition pursuant to this

12

section and related proceedings shall be in accordance with

13

court rule, including issuance as of course. A party shall not

14

disclose the receipt, content or disposition of a rule or order

15

issued pursuant to this section without leave of court. Any

16

party to the proceedings may request that the record be sealed

17

and proceedings be closed. The court shall grant the request if

18

it is in the best interest of any person or the Commonwealth to

19

do so.

20

(c)  Court determination.--Following review of the record,

21

the court shall grant the relief sought by the chief enforcement

22

counsel, if the court determines that the agency has in its

23

possession information material to the investigation or inquiry

24

and that disclosure or release of the information is in the best

25

interest of the Commonwealth. If the court so determines, the

26

court shall enter an order authorizing and directing the

27

information be made available for review in camera.

28

(d)  Release of materials or information.--If, after an in

29

camera review, the chief enforcement counsel seeks to obtain

30

copies of materials in the agency's possession, the court may,

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1

notwithstanding any other provision of law, enter an order that

2

the requested materials be provided. Any order authorizing the

3

release of materials or other information shall contain

4

direction regarding the safekeeping and use of the materials or

5

other information sufficient to satisfy the court that the

6

materials or information will be sufficiently safeguarded. In

7

making this determination the court shall consider the input of

8

the agency concerning any ongoing matter and the safety of

9

persons and property.

10

(e)  Modification of order.--If subsequent investigation or

11

inquiry by the board warrants modification of any order entered

12

pursuant to this section, the chief enforcement counsel may

13

petition to request the modification. Upon such request, the

14

court may modify its orders at any time and in any manner it

15

deems necessary and appropriate. The agency named in the

16

original petition shall be given notice and an opportunity to be

17

heard.

18

(f)  Use of information or materials.--Any person who, by any

19

means authorized by this section, has obtained knowledge of

20

information or materials solely pursuant to this section may use

21

such information or materials in a manner consistent with any

22

directions imposed by the court and appropriate to the proper

23

performance of the person's official duties under this part.

24

(g)  Violation.--In addition to any remedies and penalties

25

provided in this part, any violation of the provisions of this

26

section may be punished as contempt of the court.

27

(h)  Definition.--As used in this section the term "agency"

28

shall mean a "Commonwealth agency" or a "local agency" as those

29

terms are defined in section 102 of the act of February 14,

30

2008, (P.L.6, No.3) known as the Right-to-Know Law.

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1

§ 1518.2.  Report of suspicious transactions.

2

(a)  Duty.--The holder of any slot machine license or a

3

person acting on behalf of the licensee shall file a report of

4

any suspicious transaction with the bureau. The filing of a

5

report under 31 CFR 103.21 (relating to reports by casinos of

6

suspicious transactions) shall satisfy this requirement.

7

(b)  Failure to report.--A person required under this section

8

to file a report of a suspicious transaction who knowingly fails

9

to file a report of a suspicious transaction or who knowingly

10

causes another person having that responsibility to fail to file

11

a report commits a misdemeanor of the third degree and shall be

12

subject to the sanctions under section 1518(c) (relating to

13

prohibited acts; penalties).

14

(c)  Bureau.--The bureau shall maintain a record of all

15

reports made under this section for a period of five years. The

16

bureau shall make the reports available to any Federal or State

17

law enforcement agency upon written request and without

18

necessity of subpoena.

19

(d)  Notice prohibited.--A person who is required to file a

20

report of a suspicious transaction under this section may not

21

notify any person involved in the transaction that the

22

transaction has been reported. Any person that violates this

23

subsection commits a misdemeanor of the third degree.

24

(e)  Immunity.--A person who is required to file a report of

25

a suspicious transaction under this section who in good faith

26

makes the report shall not be liable in any civil action brought

27

by any person for making the report, regardless of whether the

28

transaction is later determined to be suspicious.

29

(f)  Sanctions.--

30

(1)  In considering appropriate administrative sanctions

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1

against any person under section 1518(c) for a violation of

2

this section, the board shall consider all of the following:

3

(i)  The risk to the public and to the integrity of

4

gaming operations created by the conduct of the person.

5

(ii)  The seriousness of the conduct of the person

6

and whether the conduct was purposeful and with knowledge

7

that it was in contravention of the provisions of this

8

part or regulations promulgated under this part.

9

(iii)  Any justification or excuse for the conduct by

10

the person.

11

(iv)  The prior history of the particular licensee or

12

person involved with respect to gaming activity.

13

(v)  The corrective action taken by the slot machine

14

licensee to prevent future misconduct of a like nature

15

from occurring.

16

(vi)  In the case of a monetary penalty, the amount

17

of the penalty in relation to the severity of the

18

misconduct and the financial means of the licensee or

19

person. The board may impose any schedule or terms of

20

payment of such penalty as it may deem appropriate.

21

(2)  It shall be no defense to disciplinary action before

22

the board that a person inadvertently, unintentionally or

23

unknowingly violated a provision of this section. The factors

24

under paragraph (1) shall only go to the degree of the

25

penalty to be imposed by the board and not to a finding of a

26

violation itself.

27

(g)  Regulations.--The board shall promulgate regulations to

28

effectuate the purposes of this section.

29

§ 1518.3.  Inapplicability of Liquor Code.

30

The provision of section 471(c) of the act of April 12, 1951

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1

(P.L.90, No.21), known as the Liquor Code, shall not apply to a

2

person who holds a slot machine license and who holds a license

3

issued under section 404 or 432 of the Liquor Code.

4

Section 18.  Section 1522 of Title 4 is amended to read:

5

§ 1522.  Interception of oral communications.

6

The interception and recording of oral communications made in

7

a [counting] count room of a licensed facility by a licensee

8

shall not be subject to the provisions of 18 Pa.C.S. Ch. 57 

9

(relating to wiretapping and electronic surveillance). Notice

10

that oral communications are being intercepted and recorded

11

shall be posted conspicuously in the [counting] count room.

12

Section 18.1.  Title 4 is amended by adding a section to

13

read:

14

§ 1523.  Electronic funds transfer terminals.

15

(a)  Prohibition.--A slot machine licensee may not install,

16

own or operate or allow another person to install, own or

17

operate on the premises of the licensed facility a slot machine

18

or table game that is played with a device that allows a player

19

to operate the slot machine or table game by transferring funds

20

electronically from a debit card or by means of an electronic

21

funds transfer terminal.

22

(b)  Definitions.--As used in this section, the following

23

words and phrases shall have the meanings given to them in this

24

subsection unless the context clearly indicates otherwise:

25

"Electronic funds transfer terminal."  An information-

26

processing device or an automatic teller machine used for

27

executing deposit account transactions between financial

28

institutions and their account holders by either the direct

29

transmission of electronic impulses or the recording of

30

electronic impulses for delayed processing. The fact that a

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1

device is used for other purposes shall not prevent it from

2

being considered an electronic funds transfer terminal under

3

this definition.

4

Section 18.2.  Title 4 is amended by adding chapters to read:

5

Chapter 16

6

JUNKETS

7

Sec.

8

1601.  Gaming junkets authorized.

9

1602.  Gaming junket enterprise license.

10

1603.  Other licenses.

11

1604.  Gaming junket representatives.

12

1605.  Junket agreements.

13

1606.  Conduct of junket.

14

1607.  Violation of terms.

15

1608.  Records.

16

1609.  Report.

17

1610.  Gaming junket arrangement.

18

1611.  Prohibitions.

19

§ 1601.  Gaming junkets authorized.

20

The board may authorize the organization and conduct of

21

gaming junkets subject to the provisions of this chapter. No

22

gaming junket shall be organized or permitted to operate in this

23

Commonwealth and no person shall act as a junket representative

24

or junket enterprise except in accordance with this chapter.

25

§ 1602.  Gaming junket enterprise license.

26

(a)  Gaming junket enterprise license required.--All gaming

27

junket enterprises shall obtain a license from the board prior

28

to acting as a gaming junket enterprise in this Commonwealth.

29

(b)  Application.-–A gaming junket enterprise license

30

application shall be in a form prescribed by the board and shall

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1

include the following:

2

(1)  The name, address and photograph of the applicant

3

all owners, directors, managers and supervisory employees of

4

a gaming junket enterprise.

5

(2)  The details of a gaming junket enterprise license or

6

similar license applied for or granted or denied to the

7

applicant by another jurisdiction.

8

(3)  Consent for the board to conduct a background

9

investigation, the scope of which shall be determined by the

10

board.

11

(4)  All releases necessary for the board to acquire

12

licensing documents and other information necessary to

13

conduct a background investigation or otherwise evaluate the

14

application.

15

(5)  A list of all civil judgments obtained against the

16

applicant pertaining to a gaming junket enterprise with which

17

the applicant has been associated.

18

(6)  A description of the operation and organization of

19

the gaming junket enterprise.

20

(7)  Any additional information required by the board.

21

(c)  Enforcement information.-–If the applicant has held a

22

gaming junket license or gaming junket license or other gaming

23

license in another jurisdiction, the applicant may submit a

24

letter of reference from the gaming enforcement agency in the

25

other jurisdiction. The letter shall specify the experiences of

26

the agency with the applicant, the applicant's associates and

27

the applicant's gaming junket enterprise or gaming activity. If

28

no letter is received within 30 days of the applicant's request,

29

the applicant may submit a statement under oath, subject to the

30

penalty for false swearing under 18 Pa.C.S. § 4903 (relating to

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1

false swearing), that the applicant is in good standing with the

2

gaming enforcement agency in the other jurisdiction.

3

(d)  Issuance.-–Following review of the application and

4

completion of the background investigation, the board may issue

5

a gaming junket enterprise license to the applicant if the

6

applicant has proven by clear and convincing evidence that the

7

applicant is a person of good character, honesty and integrity

8

and that the applicant’s activities, criminal record,

9

reputation, habits and associations do not pose a threat to the

10

public interest or suitable or legitimate operation of gaming.

11

(e)  Failure to cooperate.-–Failure to provide required

12

information or releases under this section shall result in the

13

immediate denial of a license or permit.

14

(f)  Nontransferability.-–A license issued under this section

15

shall be nontransferable.

16

§ 1603.  Other licenses.

17

An owner, director, manager or supervisory employee of a

18

gaming junket enterprise shall qualify for and obtain a key

19

employee license in accordance with section 1311.2 (relating to

20

licensing of key employees) or a principal employee license

21

under section 1311.1 (relating to licensing of principals) as

22

deemed appropriate by the board.

23

§ 1604.  Gaming junket representatives.

24

(a)  Occupation permit.-–Except as otherwise provided in

25

subsection (e), a gaming junket representative shall obtain an

26

occupation permit from the board in accordance with section 1318

27

(relating to occupation permit application).

28

(b)  Application.-–In addition to the requirements of section

29

1308 (relating to applications for license or permit), the

30

application for a gaming junket representative occupation permit

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1

shall be in a form prescribed by the board and shall include the

2

following:

3

(1)  Verification of employment status as a gaming junket

4

representative with a licensed gaming junket enterprise.

5

(2)  A description of employment responsibilities.

6

(3)  A consent form to allow the board to conduct a

7

background investigation, the scope of which shall be

8

determined by the board.

9

(4)  A release for the board to acquire copies of

10

information from government agencies, employers and others as

11

necessary to complete the investigation.

12

(5)  Fingerprints which shall be submitted to the

13

Pennsylvania State Police.

14

(6)  A photograph that meets the standards of the

15

Commonwealth Photo Imaging Network.

16

(7)  Details relating to a similar license, permit or

17

other authorization obtained in another jurisdiction, if any.

18

(8)  Any additional information required by the board.

19

(c)  Issuance.-–Following review of the application and

20

background investigation, the board may issue an occupation

21

permit if the applicant has proven by clear and convincing

22

evidence that the applicant is a person of good character,

23

honesty and integrity and is eligible and suitable to receive an

24

occupation permit.

25

(d)  Nontransferability.-–An occupation permit issued under

26

this section shall be nontransferable.

27

(e)  Holder of occupation permit.–-Nothing in this section

28

shall be construed to prohibit a gaming junket representative

29

who holds a valid occupation permit and who is employed by a

30

slot machine licensee or an applicant for a slot machine license

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1

from acting as a junket representative. A gaming junket

2

representative need not be a resident of this Commonwealth.

3

§ 1605.  Junket agreements.

4

Agreements entered into between a slot machine licensee and a

5

gaming junket enterprise or a gaming junket representative shall

6

include a provision for the termination of the agreement without

7

liability on the part of the slot machine licensee if:

8

(1)  The board orders the suspension, limitation,

9

conditioning, denial or revocation of the license of a gaming

10

junket representative license or occupation permit of a

11

gaming junket representative.

12

(2)  The board finds that the agreement is not approved

13

or that it is terminated. Failure to expressly include the

14

termination requirement under this section in the agreement

15

shall not constitute a defense in an action brought relating

16

to the termination of the agreement.

17

§ 1606.  Conduct of junket.

18

A slot machine licensee shall be responsible for the conduct

19

of a gaming junket representative or gaming junket enterprise

20

with which the slot machine licensee has an agreement and for

21

the terms and conditions of a gaming junket on its premises.

22

§ 1607.  Violation of terms.

23

Notwithstanding any other provision of this part, if the

24

board determines that the terms of an agreement to conduct a

25

gaming junket were violated by a slot machine licensee, gaming

26

junket enterprise or gaming junket representative, the board may

27

do the following:

28

(1)  Order restitution to gaming junket patrons.

29

(2)  Assess civil penalties for a violation or deviation

30

from the terms of the junket agreement.

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1

§ 1608.  Records.

2

The board shall prescribe procedures and forms to retain

3

records relating to the conduct of a gaming junket by a slot

4

machine licensee. A slot machine licensee shall:

5

(1)  Maintain a report describing the operation of a

6

gaming junket conducted at its licensed facility.

7

(2)  Submit to the board and the bureau a list of all its

8

employees who act as gaming junket representatives on a full-

9

time, part-time or temporary basis.

10

(3)  Maintain records of all agreements entered into with

11

a gaming junket enterprise or gaming junket representative

12

for a minimum of five years.

13

(4)  Provide any other information relating to a gaming

14

junket required by the board or bureau.

15

§ 1609.  Report.

16

A slot machine licensee, gaming junket representative or

17

gaming junket enterprise shall file a report with the bureau to

18

include a list of gaming junket patrons or potential gaming

19

junket patrons purchased by the slot machine licensee, gaming

20

junket representative or gaming junket enterprise. The report

21

shall include the source of the list and zip codes of patrons or

22

potential patrons on a list purchased directly or indirectly by

23

a slot machine licensee, gaming junket representative or gaming

24

junket enterprise. Nothing in this section shall require the

25

reporting or maintenance of personal identifying information

26

pertaining to patron or potential patrons.

27

§ 1610.  Gaming junket arrangement.

28

Upon petition by a slot machine licensee, the board may grant

29

an exemption from the requirements of this part to a gaming

30

junket representative. The board shall consult with the bureau

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1

prior to granting an exemption under this section and shall

2

consider the following:

3

(1)  The terms of the gaming junket arrangement.

4

(2)  The number and scope of gaming junkets.

5

(3)  Whether the exemption is consistent with the

6

policies and purposes of this part.

7

(4)  Any other factor deemed necessary by the bureau or

8

board.

9

The board may condition, limit or restrict the exemption.

10

§ 1611.  Prohibitions.

11

A gaming junket enterprise or gaming junket representative

12

shall not do any of the following:

13

(1)  Engage in efforts to collect on checks that have

14

been returned by a bank or other financial institution

15

without payment.

16

(2)  Exercise approval authority over the authorization

17

or issuance of credit under section 1326A (relating to

18

wagering policies).

19

(3)  Receive or retain a fee from a patron for the

20

privilege of participating in a gaming junket.

21

(4)  Pay for any service, including transportation, or

22

other thing of value provided to a patron participating in a

23

gaming junket except as authorized by this part.

24

CHAPTER 17

25

GAMING SCHOOLS

26

Sec.

27

1701.  Curriculum.

28

1702.  Gaming school gaming equipment.

29

§ 1701.  Curriculum.

30

The Department of Education, in consultation with the board,

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1

shall develop curriculum guidelines, including minimum

2

proficiency requirements established by the board, for gaming

3

school instruction. The guidelines shall, at a minimum,

4

establish courses of instruction that will provide individuals

5

with adequate training necessary to obtain employment as a

6

gaming employee with a licensed gaming entity.

7

§ 1702.  Gaming school gaming equipment.

8

(a)  Use of gaming equipment.--All gaming equipment utilized

9

by a gaming school, including table game devices and all

10

representations of value, shall be used for training,

11

instructional and practice purposes only. The use of any such

12

gaming equipment for actual gaming by any person is prohibited.

13

(b)  Chips.--Unless the board otherwise determines, all

14

gaming chips and other representations of value utilized by a

15

gaming school shall be distinctly dissimilar to any gaming chips

16

and representations of value utilized by a slot machine

17

licensee.

18

(c)  Possession, removal and transport of equipment.--No

19

gaming school shall possess, remove or transport, or cause to be

20

removed or transported, any slot machine, table game device or

21

associated equipment except in accordance with this part.

22

(d)  Serial numbers.--Each slot machine, table game device

23

and associated equipment on the premises of a gaming school

24

shall have permanently affixed on it a serial number which,

25

together with the location of the machine or table game device,

26

shall be filed with the board.

27

(e)  Security.--Each gaming school shall provide adequate

28

security for the slot machines, table games, table game devices

29

and associated equipment on the gaming school premises.

30

(f)  Notice to board and bureau.--No gaming school shall sell

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1

or transfer any slot machine, table game, table game device or

2

associated equipment except upon prior written notice to the

3

board and the bureau and the removal of all serial numbers

4

required by this section.

5

Section 19.  No later than 90 days after the effective date

6

of this act, the Pennsylvania Gaming Control Board shall

7

transfer the sum of $12,500,000 from the amounts previously

8

appropriated to the Pennsylvania Gaming Control Board pursuant

9

to 4 Pa.C.S. § 1408 to the General Fund.

10

Section 20.  The amendment of 4 Pa.C.S. § 1213 shall not

11

apply to any of the following:

12

(1)  An application submitted before the effective date

13

of this section.

14

(2)  Any license or permit issued prior to the effective

15

date of this section.

16

(3)  The renewal of any license or permit issued prior to

17

the effective date of this section.

18

Section 21.  This act shall take effect immediately.

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