CORRECTIVE REPRINTHOUSE AMENDED

 

PRIOR PRINTER'S NOS. 1196, 1247, 1460, 1464,

PRINTER'S NO.  1468

  

THE GENERAL ASSEMBLY OF PENNSYLVANIA

  

SENATE BILL

 

No.

711

Session of

2009

  

  

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

  

  

AS AMENDED ON SECOND CONSIDERATION, HOUSE OF REPRESENTATIVES, OCTOBER 5, 2009   

  

  

  

AN ACT

  

1

Amending Title 4 (Amusements) of the Pennsylvania Consolidated

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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

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1

Statutes, further providing for legislative intent, for

2

definitions, for the Pennsylvania Gaming Control Board

3

established, for applicability of other statutes, for powers

4

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

5

of regulatory agencies; further providing for licensed gaming

6

entity application appeals from board, for license or permit

7

application hearing process and public hearings, for board

8

minutes and records, for regulatory authority of board, for

9

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

10

for number of slot machines and for reports of board;

11

providing for report by slot machine licensee; further

12

providing for diversity goals of board and for license or

13

permit prohibition; providing for specific authority to

14

suspend slot machine license and for Auditor General's

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15

reports; further providing for Category 3 slot machine

16

license, for applications for license or permit, for slot

17

machine license application character requirements, for slot

18

machine license application financial fitness requirements,

19

for supplier licenses and for manufacturer licenses;

20

providing for gaming service provider and for alternative

21

supplier licensing standards; further providing for

22

occupation permit application, for additional licenses and

23

permits and approval of agreements, for license renewals, for

24

change in ownership or control of slot machine licensee and

25

for nonportability of slot machine license; providing for

26

appointment of trustee and for additional table game

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27

assessment; authorizing table games; further providing for

28

slot machine license deposits; providing for limitation on

29

recovery of costs; further providing for gross terminal

30

revenue deductions, for itemized budget reporting, for

31

establishment of State Gaming Fund and net slot machine

32

revenue distribution, for distributions from Pennsylvania

33

Race Horse Development Fund, for Pennsylvania Gaming Economic

34

Development and Tourism Fund, for transfers from State Gaming

35

Fund, for responsibility and authority of Department of

36

Revenue, for wagering on credit, and for no eminent domain

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37

authority,; providing for deteriorated designations; further

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38

providing for compulsive and problem gambling program, for

39

labor hiring preferences, for declaration of exemption from

40

Federal laws prohibiting slot machines and for financial and

41

employment interests; providing for additional restrictions;

42

further providing for political influence, for regulation

43

requiring exclusion of certain persons; providing for

44

prosecutorial and adjudicative functions; further providing

45

for investigations and enforcement, for conduct of public

46

officials and employees and for prohibited acts and

47

penalties; providing for additional authority and for report

48

of suspicious transactions; further providing for

49

interception of oral communications; providing for electronic

50

funds transfer terminals; regulating junkets; and providing

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51

for gaming schools.

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1

The General Assembly of the Commonwealth of Pennsylvania

2

hereby enacts as follows:

3

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

4

Consolidated Statutes is amended and the section is amended by

5

adding paragraphs to read:

6

§ 1102.  Legislative intent.

7

The General Assembly recognizes the following public policy

8

purposes and declares that the following objectives of the

9

Commonwealth are to be served by this part:

10

* * *

11

(10.1)  The General Assembly has a compelling interest in

12

protecting the integrity of both the electoral process and

13

the legislative process by preventing corruption and the

14

appearance of corruption which may arise through permitting

15

campaign contributions by the gaming industry.

16

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

17

regulatory control and legislative oversight over the

18

operation of slot machines in this Commonwealth; to prevent

19

the actual or appearance of corruption that may result from

20

[large] campaign contributions; ensure the bipartisan

21

administration of this part; and avoid actions that may erode

22

public confidence in the system of representative government.

23

(11.1)  Completely banning political CAMPAIGN

24

contributions by certain individuals and entities subject to

25

this act is necessary to prevent corruption, or the

26

appearance of corruption, that may arise when politics and

27

gaming are intermingled.

28

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

29

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

30

amended and the section is amended by adding definitions to

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1

read:

2

§ 1103.  Definitions.

3

The following words and phrases when used in this part shall

4

have the meanings given to them in this section unless the

5

context clearly indicates otherwise:

6

* * *

7

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

8

contendere, whether or not a judgment of sentence has been

9

imposed as determined by the law of the jurisdiction in which

10

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

11

that has been expunged or overturned or for which an individual

12

has been pardoned or an order of Accelerated Rehabilitative

13

Disposition which has been issued.

14

* * *

15

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

16

the following:

17

(1)  Deputy Secretaries of the Commonwealth and the

18

Governor's Office executive staff.

19

(2)  An employee of the executive branch with

20

discretionary power which may affect or influence the outcome

21

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

22

the development of regulations or policies relating to a

23

licensed entity or who is involved in other matters under

24

this part. The term shall include an employee with law

25

enforcement authority.

26

(3)  An employee of a county or municipality with

27

discretionary powers which may affect or influence the

28

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

29

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

30

policy relating to a licensed entity or who is involved in

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1

other matters under this part. The term shall include an

2

employee with law enforcement authority.

3

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

4

commission, authority or other governmental body not included

5

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

6

may affect or influence the outcome of the governmental

7

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

8

development of regulation or policy relating to a licensed

9

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

10

The term shall include an employee with law enforcement

11

authority.

12

* * *

13

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

14

licensee, manufacturer licensee, supplier licensee or other

15

person licensed by the Pennsylvania Gaming Control Board under

16

this part.

17

"Licensed entity representative."  A person acting on behalf

18

of or representing the interest of any applicant, licensee,

19

permittee or registrant, including an attorney, agent or

20

lobbyist, regarding any matter which may reasonably be expected

21

to come before the board.

22

* * *

23

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

24

license.]

25

* * *

26

"Trustee."  A fiduciary appointed by the Pennsylvania Gaming

27

Control Board to preserve the viability of a licensed facility

28

and the integrity of gaming in this Commonwealth.

29

* * *

30

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

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1

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

2

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

3

is amended by adding a subsection to read:

4

§ 1201.  Pennsylvania Gaming Control Board established.

5

* * *

6

(b)  Membership.--

7

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

8

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

9

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

10

following:

11

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

12

Senate.

13

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

14

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

15

Representatives.

16

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

17

Representatives.

18

(2)  The chairman of the Community, Economic and

19

Recreational Development Committee of the Senate may hold a

20

public hearing on an appointee under paragraph (1).

21

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

22

pleasure of the appointing authority and shall be removed from

23

office by the appointing authority:

24

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

25

conduct evidencing unfitness for office or incompetence; or

26

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

27

infamous crime, an offense under this part or an equivalent

28

offense under Federal law or the law of another jurisdiction.

29

* * *

30

(f)  Qualified majority vote.--

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1

* * *

2

(3)  Notwithstanding any other provision of this part or

3

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

4

member shall disclose the nature of his disqualifying

5

interest, disqualify himself and abstain from voting in a

6

proceeding under this part in which his objectivity,

7

impartiality, integrity or independence of judgment may be

8

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

9

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

10

legislative appointee has disqualified himself, the qualified

11

majority shall consist of all of the remaining legislative

12

appointees and at least two gubernatorial appointees.

13

* * *

14

(h)  Qualifications and restrictions.--

15

* * *

16

(4.1)  No member appointed after the effective date of

17

this paragraph shall engage in any business, employment or

18

vocation for which the member shall receive any COMPENSATION

19

OR remuneration except for an individual who is reappointed

20

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

21

this paragraph.

22

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

23

compensation other than salary and expenses provided by law

24

for any activity related to the duties or authority of the

25

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

26

engaging in any employment or receiving any compensation for

27

such employment that is not connected to or incompatible with

28

his service as a member of the board.]

29

* * *

30

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

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1

his immediate family shall divest any financial interest in

2

any applicant, licensed facility or licensed entity and in an

3

affiliate, intermediary, subsidiary or holding company

4

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

5

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

6

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

7

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

8

financial interest in any applicant, licensed facility or

9

licensed entity or in an affiliate, intermediary, subsidiary

10

or holding company thereof. For purposes of this paragraph,

11

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

12

or unemancipated child.

13

* * *

14

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

15

hearing or proceeding or participate in any other activity on

16

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

17

intermediary, subsidiary or holding company thereof, or any

18

other licensee or permittee for a period of two years from

19

the termination of term of office.

20

(11)  No member, employee or independent contractor of

21

the board shall accept a complimentary service, wager or be

22

paid any prize from any wager at any licensed facility within

23

this Commonwealth or at any other facility outside this

24

Commonwealth which is owned or operated by a licensed gaming

25

entity or any of its affiliates, intermediaries, subsidiaries

26

or holding companies thereof for the duration of their term

27

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

28

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

29

of office, employment or contract with the board. The

30

provisions of this paragraph prohibiting wagering during the

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1

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

2

the employees utilize slot machines for testing purposes or

3

to verify the performance of a machine as part of an

4

enforcement investigation.

5

* * *

6

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

7

an independent contractor of the board] whose duties

8

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

9

development or adoption of laws, regulations or policy or who

10

has other discretionary authority which may affect the

11

outcome of an action or decision under this part, including

12

the executive director, bureau directors and attorneys, shall

13

do any of the following:

14

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

15

by an applicant or licensed entity, or an affiliate,

16

intermediary, subsidiary or holding company thereof, for

17

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

18

the employment relating to the conduct of gaming [or

19

contract with the board; or].

20

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

21

or proceeding or participate in any other activity on

22

behalf of any applicant, licensee, permittee or licensed

23

entity, or an affiliate, intermediary, subsidiary or

24

holding company thereof, for a period of two years after

25

termination of the employment [or contract with the

26

board].

27

(iii)  As a condition of employment, an employee

28

under this paragraph shall sign an affidavit that the

29

employee will 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 thereof for a

2

period of two years from the termination of employment.

3

An applicant or licensed entity or an affiliate,

4

intermediary, subsidiary or holding company thereof shall

5

not employ or retain an individual who signed an

6

affidavit signed under this subparagraph. An applicant or

7

licensed entity or an affiliate, intermediary, subsidiary

8

or holding company that knowingly employs or retains an

9

individual in violation of this subparagraph shall be

10

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

11

prohibited acts; penalties).

12

(13.1)  No independent contractor or individual employed

13

by an independent contractor of the board whose duties

14

substantially involve consultation relating to licensing,

15

enforcement or the development or adoption of regulations or

16

policy under this part shall:

17

(i)  Accept employment with or be retained by an

18

applicant or a licensed entity or an affiliate,

19

intermediary, subsidiary or holding company thereof for a

20

period of one year after the termination of the contract

21

with the board.

22

(ii)  Appear before the board in any hearing or

23

proceeding or participate in any other activity on behalf

24

of an applicant, licensee, permittee or licensed entity

25

or an affiliate, intermediary, subsidiary or holding

26

company of an applicant, licensee, permittee or licensed

27

entity for a period of two years after termination of the

28

contract with the board.

29

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

30

contractor or individual employed by an independent

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1

contractor of the board under this paragraph shall sign

2

an affidavit to not accept employment with or be retained

3

by any applicant, licensed entity or an affiliate,

4

intermediary, subsidiary or holding company of an

5

applicant, licensed entity or affiliate for a period of

6

one year from the termination of employment. A licensed

7

entity or an affiliate, intermediary, subsidiary or

8

holding company of an applicant, licensed entity or

9

affiliate shall not employ or retain an individual who

10

signed an affidavit signed under this subparagraph. A

11

licensed entity or an affiliate, intermediary, subsidiary

12

or holding company thereof that knowingly employs or

13

retains an individual in violation of this subparagraph

14

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

15

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

16

board, the executive branch of the Commonwealth or a

17

political subdivision or of the agency or political

18

subdivision employing an employee, the State Ethics

19

Commission shall determine whether the individual's duties

20

substantially involve the development or adoption of laws, 

21

regulations or policy, licensing or enforcement under this

22

part or other discretionary authority which may affect the

23

outcome of an action or decision under this part and shall

24

provide a written determination to the employee to include

25

any prohibition under this paragraph. An individual who

26

relies in good faith on a determination under this paragraph

27

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

28

provided that all material facts set forth in the request for

29

a determination are correct.

30

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

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1

of the board violates any provision of this section, the

2

appointing authority [or the board may, upon notice and

3

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

4

appointment or]. A member removed under this paragraph shall

5

be prohibited from future appointment to the board and shall

6

be prohibited from applying for a license or permit, from

7

becoming an independent contractor of the board, or

8

registering as a licensed entity representative for a period

9

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

10

employee or independent contractor of the board violates any

11

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

12

hearing, terminate the employment or contract, and the person

13

shall be ineligible for future [appointment,] employment or

14

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

15

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

16

shall be prohibited from applying for a license or permit,

17

becoming an independent contractor or registering as a

18

licensed entity representative for a period of five years

19

from the date of termination of the employment or contract.

20

* * *

21

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

22

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

23

appointing authority shall make [their initial] appointments

24

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

25

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

26

appointing authority of the required background investigation of

27

the appointee by the Pennsylvania State Police which shall be

28

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

29

any domestic or foreign jurisdiction of a felony, infamous crime

30

or gaming offense shall be appointed to the board.

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1

* * *

2

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

3

other fiscal crisis, the Governor implements a system in order

4

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

5

Commonwealth agency, the board and its employees and all

6

employees of the Department of Revenue, the Pennsylvania State

7

Police and the Office of Attorney General whose duties involve

8

the regulation and oversight of gaming under this part shall not

9

be subject to furlough but shall continue to perform their

10

duties.

11

* * *

12

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

13

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

14

adding paragraphs to read:

15

§ 1202.  General and specific powers.

16

(a)  General powers.--

17

* * *

18

[(4)  The board shall establish a system of

19

classification and compensation of its employees and shall

20

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

21

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

22

as to classification and compensation for its employees and

23

conduct its activities consistent with the practices and

24

procedures of Commonwealth agencies.]

25

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

26

paragraph, the board shall establish a system of

27

classification and compensation of its employees and shall be

28

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

29

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

30

as to classification and compensation for its employees and

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1

conduct its activities consistent with the practices and

2

procedures of Commonwealth agencies. The provisions of this

3

paragraph shall apply to employees hired after the effective

4

date of this paragraph. Nothing in this paragraph shall

5

prevent the board from altering a system, or establishing a

6

new system, of classification or compensation for employees

7

hired prior to the effective date of this section.

8

* * *

9

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

10

power and duty:

11

* * *

12

(7)  To administer oaths, examine witnesses and issue

13

subpoenas compelling the attendance of witnesses or the

14

production of documents and records or other evidence[. The

15

provisions of this paragraph shall apply to designated

16

officers and employees.], or to designate officers or

17

employees to perform these duties.

18

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

19

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

20

or hearing conducted under this part, a person refuses to

21

answer a question or to produce evidence on the grounds that

22

the answer or evidence will expose the person to criminal

23

prosecution, the board may adopt a resolution recommending a

24

grant of immunity that includes the specific question to be

25

posed or information or evidence being sought from the person

26

as follows:

27

(i)  The resolution shall be submitted to the

28

Attorney General for approval or disapproval within 20

29

days of receipt of the resolution. Upon the written

30

approval of the Attorney General, the board may issue an

- 14 -

 


1

order to compel the person to answer or produce evidence

2

with immunity.

3

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

4

immunity order provides the answer or evidence, the

5

person shall be immune from criminal prosecution based on

6

the answer or evidence that was the subject of the

7

immunity order.

8

(iii)  The person may be prosecuted for perjury

9

committed in the answer or production of evidence or held

10

in contempt for failing to give an answer or produce

11

evidence in accordance with the order. The answer or

12

evidence shall be admissible only against the person in a

13

criminal investigation, or a trial or other proceeding

14

for perjury or contempt.

15

(iv)  Immunity under this paragraph shall not

16

preclude the use of any other remedy or sanction

17

authorized by law.

18

* * *

19

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

20

permit unless it is satisfied that the applicant has

21

demonstrated by clear and convincing evidence that the

22

applicant is a person of good character, honesty and

23

integrity and is a person whose prior activities, criminal

24

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

25

pose a threat to the public interest or the effective

26

regulation and control of slot machine operations or create

27

or enhance the danger of unsuitable, unfair or illegal

28

practices, methods and activities in the conduct of slot

29

machine operations or the carrying on of the business and

30

financial arrangements incidental thereto.

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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 who own a financial

24

equity share or interest with an ownership interest equal

25

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

26

foreign corporation, partnership, limited liability

27

company or other legal entity.

28

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

29

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

30

(iv)  The names of all officers, directors,

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1

principals and key employees of a licensed gaming entity.

2

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

3

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

4

Commonwealth and the board to operate a licensed facility and

5

ensure compliance with this part.

6

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

7

§ 1202.1.  Code of conduct.

8

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

9

conduct prior to the consideration of any license, permit or

10

registration application. The code of conduct shall supplement

11

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

12

(relating to accountability) and shall provide guidelines

13

applicable to members, employees, independent contractors of the

14

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

15

subsection (e), employees and independent contractors to enable

16

them to avoid any perceived or actual conflict of interest and

17

to promote public confidence in the integrity and impartiality

18

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

19

this section shall include registration of licensed entity

20

representatives under subsection (b) and the restrictions under

21

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

22

(b)  Registration.--

23

(1)  A licensed entity representative shall register with

24

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

25

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

26

of both the licensed entity representative and the [licensed

27

entity] applicant, licensee, permittee or registrant or

28

individual being represented.

29

(2)  A licensed entity representative shall have an

30

[ongoing] affirmative duty to update its registration

- 17 -

 


1

information on an ongoing basis.

2

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

3

registration list which shall contain the information

4

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

5

public inspection at the offices of the board and on the

6

board's Internet website.

7

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

8

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

9

person.

10

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

11

compensation, travel, lodging or other thing of value,

12

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

13

licensed entity, including any affiliate, subsidiary,

14

intermediary or holding company thereof, permittee,

15

registrant or licensed entity representative thereof.

16

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

17

hearing or other proceeding in which the member's

18

objectivity, impartiality, integrity or independence of

19

judgment may be reasonably questioned due to the member's

20

relationship or association with a party connected to any

21

hearing or proceeding or a person appearing before the board.

22

(4)  Refrain from any financial or business dealing which

23

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

24

impartiality or independence of judgment.

25

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

26

office in any political party or political committee as

27

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

28

contribute to or solicit contributions to a political

29

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

30

candidate, publicly endorse a candidate or actively

- 18 -

 


1

participate in a political campaign.

2

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

3

religious, health, fraternal, civic or other nonprofit entity

4

from an applicant, licensed entity or affiliate, subsidiary,

5

intermediary or holding company of a licensed entity,

6

interested party, permittee or licensed entity

7

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

8

(relating to Pennsylvania Gaming Control Board established),

9

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

10

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

11

personal contributions to and plan or preside over the

12

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

13

name to appear on the letterhead used for fundraising events

14

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

15

position with the nonprofit entity.

16

(7)  Not meet or engage in discussions with any

17

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

18

permittee, [or a] licensed entity representative or person

19

who provides goods, property or services to a slot machine

20

licensee unless the meeting or discussion occurs on the

21

business premises of the board and is recorded in a log

22

maintained for this purpose. The log shall be available for

23

public inspection during the regular business hours of the

24

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

25

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

26

discussion, the names of the participants and the subject

27

matter discussed. The provisions of this paragraph shall not

28

apply to meetings [of the board] to consider matters

29

requiring the physical inspection of the equipment or

30

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

- 19 -

 


1

location of the licensed facility.

2

(8)  Avoid impropriety and the appearance of impropriety

3

at all times and observe standards and conduct that promote

4

public confidence in the oversight of gaming.

5

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

6

relating to the conduct of a member.

7

(c.1)  Prohibitions.--

8

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

9

advising the board on a particular licensing issue or

10

proceeding or employee whose duties relate to licensing and

11

who is advising the board on a particular licensing issue or

12

proceeding shall engage in any ex parte communication with

13

any person.

14

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

15

Enforcement Counsel or an applicant, licensee or permittee in

16

any proceeding shall engage in an ex parte communication with

17

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

18

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

19

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

20

Enforcement Counsel who is involved in a proceeding shall

21

engage in an ex parte communication with a member, an

22

attorney of the Office of Chief Counsel who is advising the

23

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

24

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

25

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

26

a board member, employee or hearing officer shall be recorded

27

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

28

available for public inspection during the regular business

29

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

30

Internet website. The LOG SHALL INCLUDE:

- 20 -

 


1

(I) The individual recording the ex parte

2

communication. shall include:

3

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

4

communication.

5

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

6

names of all individuals involved in the ex parte

7

communication.

8

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

9

ex parte communication.

10

(2)  In addition to documenting an ex parte communication

11

under paragraph (1), notification and an opportunity to

12

respond shall be provided to the following as follows:

13

(i)  A board member or employee shall promptly notify

14

the board and all persons directly affected by the

15

anticipated vote or action of the board of the substance

16

of the communication.

17

(ii)  A hearing officer shall promptly notify the

18

board and all parties to the proceeding before the

19

hearing officer of the substance of the communication.

20

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

21

received or engaged in an ex parte communication shall

22

recuse himself from any hearing or other proceeding

23

related to the ex parte communication if the context and

24

substance of the ex parte communication creates

25

substantial reasonable doubt as to the individual's

26

ability to act objectively, independently or impartially.

27

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

28

elects not to recuse himself based on an ex parte

29

communication shall state his reasons for doing so on the

30

record prior to the commencement of the hearing or

- 21 -

 


1

proceeding.

2

(iii)  If a legislative appointee recuses himself

3

from any hearing or other proceeding under this section,

4

any qualified majority vote required under this part

5

shall consist of all of the remaining legislative

6

appointees and at least two gubernatorial appointees.

7

(iv)  Failure of a hearing officer or employee to

8

recuse himself from a hearing or other proceeding due to

9

receipt of an ex parte communication under this section

10

shall be grounds for appeal to the board of the failure

11

to recuse.

12

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

13

a hearing or other proceeding due to receipt of an ex

14

parte communication under this section shall be grounds

15

for appeal of a decision to a court of competent

16

jurisdiction if the board action being appealed would not

17

have occurred without the participation of the board

18

member who received the ex parte communication.

19

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

20

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

21

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

22

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

23

subsection:

24

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

25

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

26

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

27

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

28

reasonably be expected to come before the board in a contested

29

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

30

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

- 22 -

 


1

hearing officer of the board, Department of Revenue,

2

Pennsylvania State Police, Attorney General or other law

3

enforcement official prior to the beginning of the proceeding

4

solely for the purpose of seeking clarification or correction to

5

evidentiary materials intended for use in the proceedings.

6

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

7

siblings and the spouses of any of those individuals.

8

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

9

of or representing the interest of any applicant, licensee,

10

permittee or registrant, including an attorney, agent or

11

lobbyist, regarding any matter which may reasonably be expected

12

to come before the board.]

13

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

14

§ 1202.2.  Expenses of the Pennsylvania Gaming Control Board.

15

Members and employees of the board shall only be reimbursed

16

for actual and reasonable expenses incurred during the

17

performance of their duties. In order to receive reimbursement

18

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

19

submit a receipt validating the expense incurred.

20

Reimbursements, allowances or other payments in an amount

21

greater than the expenses for which receipts are submitted are

22

prohibited. Receipts and requests for reimbursement shall be

23

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

24

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

25

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

26

and the subsection is amended by adding paragraphs to read:

27

§ 1205.  License or permit application hearing process; public

28

input hearings.

29

* * *

30

(b)  Public input hearing requirement.--

- 23 -

 


1

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

2

board shall hold at least one public input hearing on the

3

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

4

hearing prior to:

5

(i)  Licensing a facility.

6

(ii)  Approving the structural redesign of a licensed

7

facility located in a city of the first class.

8

(2)  All public input hearings [relating to an

9

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

10

shall be held in the municipality where the licensed facility

11

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

12

with the municipality.

13

* * *

14

(4)  In addition to any witnesses scheduled to testify

15

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

16

comment period during which time members of the public may

17

address the board regarding the proposed license or

18

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

19

discretion, may place reasonable time limits on an

20

individual's comments.

21

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

22

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

23

§ 1206.  Board minutes and records.

24

* * *

25

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

26

(1)  The following information submitted by an applicant

27

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

28

machine license application character requirements) or

29

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

30

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

- 24 -

 


1

or other investigation from any source shall be [considered] 

2

confidential[.] and withheld from public disclosure:

3

(i)  All information relating to good character,

4

honesty and integrity, including family, habits,

5

reputation, history of criminal activity, business

6

activities, financial affairs and business, professional

7

and personal associations submitted under section 1310(a)

8

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

9

bureau.

10

(ii)  Nonpublic personal information, including

11

telephone numbers, Social Security numbers, educational

12

records, memberships, medical records, tax returns and

13

declarations, actual or proposed compensation, financial

14

account records, creditworthiness or a financial

15

condition relating to an applicant, licensee or permittee

16

or the immediate family thereof.

17

(iii)  Documents and information relating to

18

proprietary information, trade secrets, patents or

19

exclusive licenses, architectural and engineering plans

20

and information relating to competitive marketing

21

materials and strategies, which may include customer-

22

identifying information or customer prospects for

23

services subject to competition.

24

(iv)  Security information, including risk prevention

25

plans, detection and countermeasures, location of count

26

rooms, emergency management plans, security and

27

surveillance plans, equipment and usage protocols and

28

theft and fraud prevention plans and countermeasures.

29

(v)  Information with respect to which there is a

30

reasonable possibility that public release or inspection

- 25 -

 


1

of the information would constitute an unwarranted

2

invasion into personal privacy of any individual as

3

determined by the board.

4

(vi)  Records of an applicant or licensee not

5

required to be filed with the Securities and Exchange

6

Commission by issuers that either have securities

7

registered under section 12 of the Securities Exchange

8

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

9

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

10

Securities Exchange Act of 1934.

11

(vii)  Records considered nonpublic matters or

12

information by the Securities and Exchange Commission as

13

provided by 17 CFR 200.80 (relating to commission records

14

and information).

15

(viii)  Any financial information deemed confidential

16

by the board upon a showing of good cause by the

17

applicant or licensee.

18

(2)  No claim of confidentiality shall be made regarding

19

any information from a criminal history record check that is

20

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

21

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

22

to noncriminal justice agencies and individuals).

23

(3)  This subsection shall not apply to any information 

24

that is otherwise publicly available in this Commonwealth or

25

another jurisdiction.

26

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

27

to [investigation] investigations and enforcement), the

28

confidential information shall be withheld from public

29

disclosure in whole or in part, except that any confidential 

30

information shall be released upon the lawful order of a

- 26 -

 


1

court of competent jurisdiction or, with the approval of the

2

Attorney General, to a duly authorized law enforcement agency

3

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

4

the extent that such release is requested by an applicant and

5

does not otherwise contain confidential information about

6

another person.

7

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

8

confidentiality from an applicant or licensed entity but may 

9

not require any applicant or licensed entity to waive any

10

confidentiality provided for in this subsection as a

11

condition for the approval of a license or any other action

12

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

13

current or former board member employee or contractor who

14

publicly discloses confidential information in violation of

15

this subsection commits a misdemeanor and shall be

16

administratively disciplined by discharge, suspension,

17

termination of contract or other formal disciplinary action

18

as the board deems appropriate.

19

* * *

20

§ 1207.  Regulatory authority of board.

21

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

22

* * *

23

(4)  Require that each licensed entity provide to the

24

board its audited annual financial statements, with such

25

additional detail as the board from time to time shall

26

require, which information shall be submitted not later than

27

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

28

* * *

29

§ 1208.  Collection of fees and fines.

30

The board has the following powers and duties:

- 27 -

 


1

(1)  To levy and collect fees from the various

2

applicants, licensees and permittees to fund the operations

3

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

4

Gaming Fund as established in section 1403 (relating to

5

establishment of State Gaming Fund and net slot machine

6

revenue distribution) and distributed to the board upon

7

appropriation by the General Assembly. In addition to the

8

fees set forth in sections 1209 (relating to slot machine

9

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

10

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

11

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

12

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

13

renewal of a supplier license. When the renewal period

14

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

15

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

16

(ii)  Manufacturer licensees shall pay a fee of

17

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

18

the annual renewal of a manufacturer license. When the

19

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

20

manufacturer licenses) is three years, the fee shall be

21

$75,000 for the renewal.

22

* * *

23

§ 1209.  Slot machine license fee.

24

* * *

25

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

26

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

27

the board upon good cause consistent with the license

28

requirements as provided for in this part. Slot machine

29

licensees shall be required to update the information in their

30

initial applications annually, and the license of a licensee in

- 28 -

 


1

good standing shall be updated and renewed annually for two

2

subsequent years following the initial license issuance.

3

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

4

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

5

subsection (a) shall be required.

6

* * *

7

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

8

subsection to read:

9

§ 1211.  Reports of board.

10

* * *

11

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

12

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

13

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

14

expenses of employees and members for the preceding month. The

15

list shall identify the nature of the expense and the employee

16

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

17

shall include each expense for which a receipt is submitted to

18

obtain reimbursement. If the expense is directly attributable to

19

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

20

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

21

expenses for the preceding fiscal year shall be posted on the

22

board's Internet website and shall be transmitted to the

23

Appropriations Committee of the Senate, the Community, Economic

24

and Recreational Development Committee of the Senate, the

25

Appropriations Committee of the House of Representatives and the

26

Gaming Oversight Committee of the House of Representatives.

27

* * *

28

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

29

§ 1213.  License or permit prohibition.

30

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

- 29 -

 


1

part, including principals and key employees,] The board

2

shall be prohibited from granting a principal license or key

3

employee license to a person who has been convicted of a

4

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

5

issued a license or permit unless 15 years has elapsed from

6

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

7

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

8

permit to an applicant who has been convicted in any

9

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

10

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

11

prohibited from granting the following:

12

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

13

person who has been convicted of a gambling offense in

14

any jurisdiction that is not classified as a felony

15

unless 15 years has elapsed from the date of the

16

expiration of the sentence for the offense.

17

(ii)  A gaming employee permit or license other than

18

a principal license or key employee license to a person

19

who has been convicted of a felony or gambling offense in

20

any jurisdiction unless 15 years has elapsed from the

21

date of the expiration of the sentence for the offense.

22

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

23

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

24

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.

- 30 -

 


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

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

10

subsection to read:

11

§ 1308.  Applications for license or permit.

12

* * *

13

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

14

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

15

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

16

under this part shall include all arrests and convictions of the

17

applicant, including summary offenses. The information shall

18

include:

19

(1)  A brief description of the circumstances surrounding

20

the arrest.

21

(2)  The specific offense charged.

22

(3)  The ultimate disposition of the charges, including

23

the details of any dismissal, plea bargain, conviction or

24

sentence, including any pardon, expungement or order of

25

Accelerated Rehabilitative Disposition.

26

* * *

27

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

28

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

29

Title 4 are amended to read:

30

§ 1310.  Slot machine license application character

- 31 -

 


1

requirements.

2

(a)  Application.--

3

(1)  Every application for a slot machine license shall

4

include such information, documentation and assurances as may

5

be required to establish by clear and convincing evidence the

6

applicant's suitability, including good character, honesty

7

and integrity. Information shall include, without limitation,

8

information pertaining to family, habits, character,

9

reputation, criminal history background, business activities,

10

financial affairs and business, professional and personal

11

associates, covering at least the ten-year period immediately

12

preceding the filing date of the application.

13

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

14

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

15

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

16

pardoned or an order of Accelerated Rehabilitative

17

Disposition has been issued, shall be included with an

18

application and shall be considered by the board as part of

19

the review of the applicant's suitability under paragraph

20

(1).

21

(b)  Civil judgments and law enforcement agency

22

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

23

judgments obtained against the applicant pertaining to antitrust

24

or security regulation laws of the Federal Government, this

25

Commonwealth or any other state, jurisdiction, province or

26

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

27

reference from law enforcement agencies having jurisdiction in

28

the applicant's place of residence and principal place of

29

business, which letter of reference shall indicate that the law

30

enforcement agencies do not have any pertinent information

- 32 -

 


1

concerning the applicant or, if the law enforcement agency does

2

have information pertaining to the applicant, shall specify the

3

nature and content of that information. If no letters are

4

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

5

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

6

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

7

that the applicant is or was during the period the activities

8

were conducted in good standing with the gaming or casino

9

enforcement or control agency.

10

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

11

applicant has held a gaming license in a jurisdiction where

12

gaming activities are permitted, the applicant shall produce a

13

letter of reference from the gaming or casino enforcement or

14

control agency which shall specify the experiences of that

15

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

16

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

17

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

18

under oath which is subject to the penalty for false swearing

19

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

20

period the activities were conducted in good standing with the

21

gaming or casino enforcement or control agency.

22

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

23

license, principal license or key employee license shall be

24

required to apply to the Federal Government regarding agency

25

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

26

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

27

board with the complete record received from the Federal

28

Government. The board may issue a conditional license to the

29

applicant prior to the receipt of information under this

30

subsection.

- 33 -

 


1

§ 1317.  Supplier licenses.

2

* * *

3

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

4

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

5

approve the application and issue the applicant a supplier

6

license consistent with all of the following:

7

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

8

expiration, the license may be renewed in accordance with

9

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

10

one year and shall be subject to renewal annually under

11

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

12

the initial issuance. Thereafter, a license shall be subject

13

to renewal every three years. Nothing in this paragraph shall

14

relieve the licensee of the affirmative duty to notify the

15

board of changes to any information contained in the original

16

application.

17

* * *

18

§ 1317.1.  Manufacturer licenses.

19

* * *

20

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

21

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

22

approve the application and grant the applicant a manufacturer

23

license consistent with all of the following:

24

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

25

expiration, a license may be renewed in accordance with

26

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

27

one year and shall be subject to renewal annually under

28

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

29

the initial issuance. Thereafter, a license shall be subject

30

to renewal every three years. Nothing in this paragraph shall

- 34 -

 


1

relieve the licensee of the affirmative duty to notify the

2

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

3

relieve the licensee of its responsibility to notify the

4

board of changes to any information contained in the original

5

application.

6

* * *

7

§ 1321.  Additional licenses and permits and approval of

8

agreements.

9

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

10

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

11

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

12

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

13

person who satisfies any of the following criteria:

14

* * *

15

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

16

be licensed or permitted under this part and provides any

17

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

18

management contracts for compensation to a slot machine

19

licensee at the licensed facility. The board may by

20

regulation establish a classification system for a person who

21

provides goods, property or services to a slot machine

22

licensee. If the classification system requires the person

23

providing goods, property or services to submit to a criminal

24

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

25

criminal history record information), the board shall notify

26

the slot machine licensee if the person providing goods,

27

property or services has been convicted of a felony or

28

gambling offense.

29

* * *

30

§ 1326.  License renewals.

- 35 -

 


1

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

2

part unless otherwise provided shall be subject to renewal on an

3

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

4

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

5

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

6

following the initial issuance. Thereafter, all permits and

7

licenses shall be subject to renewal every three years. The

8

application for renewal shall be submitted at least 60 days

9

prior to the expiration of the permit or license and shall 

10

include an update of the information contained in the initial

11

and any prior renewal applications and the payment of any

12

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

13

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

14

received by the board will continue in effect unless and until

15

the board sends written notification to the holder of the permit

16

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

17

or license.

18

* * *

19

§ 1328.  Change in ownership or control of slot machine

20

licensee.

21

* * *

22

(a)  Notification and approval.--

23

(1)  A slot machine licensee shall notify the board

24

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

25

or contemplated change of ownership of the slot machine

26

licensee by a person or group of persons acting in concert

27

which involves any of the following:

28

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

29

securities or other ownership interests.

30

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

- 36 -

 


1

ownership interests of a corporation or other form of

2

business entity that owns directly or indirectly at least

3

20% of the voting or other securities or other ownership

4

interests of the licensee.

5

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

6

business of a licensee's assets.

7

(iv)  Any other transaction or occurrence deemed by

8

the board to be relevant to license qualifications.

9

* * *

10

(b)  Qualification of purchaser of slot machine licensee;

11

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

12

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

13

slot machine licensee shall independently qualify for a license

14

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

15

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

16

A change in control of any slot machine licensee shall require

17

that the slot machine licensee independently qualify for a

18

license in accordance with this part, and the slot machine

19

licensee shall pay a new license fee as required by section

20

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

21

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

22

upon the assignment and actual change of control or ownership of

23

the slot machine license.

24

* * *

25

§ 1329.  [Nonportability] Portability and relocation of slot

26

machine license.

27

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

28

valid for the specific physical location within the municipality

29

and county for which it was originally granted.

30

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

- 37 -

 


1

board shall consider the following factors:

2

(1)  The 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 [No] 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 county 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

- 38 -

 


1

public input hearing in the municipality where the licensed

2

facility will be located prior to approval of the relocation.

3

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

4

for the purpose of relocating or developing the relocated

5

licensed facility to comply with any conditions of approval of

6

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 of an individual

17

who the board has determined controls a slot machine license

18

if the principal licensee is the only principal who exercises

19

operational control of the licensed facility.

20

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

21

a principal license of an individual who the board has

22

determined controls a slot machine licensee if the principal

23

licensee is the only principal who exercises operational

24

control of the licensed facility until the slot machine or

25

principal license is renewed or until the discontinuation of

26

the trusteeship pursuant to subsection (i).

27

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

28

Commonwealth.

29

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

30

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

- 39 -

 


1

license. The board may appoint a trustee and award the

2

trustee a temporary principal license as prescribed in board

3

regulations.

4

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

5

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

6

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

7

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

8

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

9

licensee.

10

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

11

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

12

powers and perform those duties expressly conferred upon the

13

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

14

shall set forth the powers, duties and responsibilities of the

15

trustees which may include:

16

(1)  Maintaining and operating the licensed facility in a

17

manner that complies with this part and any conditions

18

imposed by the board.

19

(2)  Maintaining and operating the licensed facility

20

consistent with the measures generally taken in the ordinary

21

course of business including:

22

(i)  Entering into contracts.

23

(ii)  Borrowing money.

24

(iii)  Pledging, mortgaging or otherwise encumbering

25

the licensed facility or property thereof as security for

26

the repayment of the trustee's loans subject to any

27

provisions and restrictions in any existing credit

28

documents.

29

(iv)  Hiring, firing and disciplining employees.

30

(3)  Exercising the rights and obligations of the former

- 40 -

 


1

or suspended licensee.

2

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

3

machine licensee, including its books, records and papers.

4

(5)  Establishing accounts with financial institutions.

5

An account may not be established with a financial

6

institution in which an affiliate of the former or suspended

7

licensee, or in which the trustee, has a financial

8

controlling interest.

9

(6)  Meeting with the former or suspended licensee.

10

(7)  Meeting with principals and key employees at the

11

licensed facility.

12

(8)  Meeting with the independent audit committee.

13

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

14

keeping the board's executive director apprised of actions

15

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

16

(10)  Hiring legal counsel, accountants or other

17

consultants or assistants, with prior approval of the board,

18

as necessary to carry out the trustee's duties and

19

responsibilities.

20

(11)  Settling or compromising with any debtor or

21

creditor of the former or suspended licensee, including any

22

taxing authority.

23

(12)  Reviewing outstanding agreements to which the

24

former or suspended licensee is a party and advising the

25

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

26

subject of scrutiny, examination or investigation by the

27

board.

28

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

29

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

30

restructuring, transfer of assets or execution of a contract

- 41 -

 


1

or any other action taken outside of the ordinary course of

2

business.

3

(14)  Obtaining board approval for any payments outside

4

of those made in the ordinary course of business.

5

Notwithstanding any provision contained in this subsection to

6

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

7

preserve the assets of the licensed entity.

8

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

9

compensation of the trustee and shall review and approve actual

10

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

11

accountants or other consultants or assistants hired by the

12

trustee and other persons the board may appoint in connection

13

with the trusteeship action. The compensation, costs and

14

expenses shall be paid by the former or suspended licensee.

15

Total compensation for the trustee and all individuals hired or

16

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

17

exceed $600 per hour in the aggregate.

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

- 42 -

 


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 earnings income.--During the period

11

of trusteeship, net earnings income shall be deposited in an

12

escrow account maintained for that purpose. Payment of net

13

earnings income during the period of trusteeship may not be made

14

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

15

suspended or former principal or slot machine licensee may

16

request payment distribution of all or a portion of the net

17

earnings income during the period of trusteeship by filing a

18

petition in accordance with board regulation. The suspended or

19

former principal or slot machine licensee shall have the burden

20

of demonstrating good cause for the payment distribution of the

21

net earnings income requested.

22

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

23

discontinue a trusteeship when:

24

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

25

trustee was appointed no longer exists.

26

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

27

board, consummated the sale, assignment, conveyance or other

28

disposition of all the property or interest of the former

29

principal or slot machine licensee relating to the slot

30

machine license.

- 43 -

 


1

Upon board approval of the discontinuation of the trusteeship,

2

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

3

of the former or suspended principal or slot machine licensee.

4

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

5

regulations to establish a list of persons approved by the board

6

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

7

shall provide for the following:

8

(1)  The minimum qualifications an individual must

9

possess to be approved as a trustee, which shall include

10

possession of a principal license.

11

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

12

list.

13

(3)  Any other information the board deems necessary to

14

carry out the intent of this section.

15

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

16

subsections to read:

17

§ 1407.  Pennsylvania Gaming Economic Development and Tourism

18

Fund.

19

* * *

20

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

21

with the Department of Community and Economic Development shall

22

submit an annual report of all distribution of funds under this

23

section to the chairman and minority chairman of the

24

Appropriations Committee of the Senate, the chairman and

25

minority chairman of the Community, Economic and Recreational

26

Development Committee of the Senate, the chairman and minority

27

chairman of the Appropriations Committee of the House of

28

Representatives and the chairman and minority chairman of the

29

Gaming Oversight Committee of the House of Representatives. The

30

report shall include detailed information relating to transfers

- 44 -

 


1

made from the Pennsylvania Gaming Economic Development and

2

Tourism Fund and all reimbursements, distributions and payments

3

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

4

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

5

Tourism Fund Capital Budget Itemization Act of 2007. The report

6

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

7

each year thereafter.

8

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

9

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

10

convention center authority, professional hockey franchise

11

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

12

urban redevelopment authority, airport authority or other entity

13

that receives money from the fund pursuant to an Economic

14

Development Capital Budget under this section subsection (b) or

15

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

16

Gaming Economic Development and Tourism Fund Capital Budget

17

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

18

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

19

Appropriations Committee of the Senate, the chairman and

20

minority chairman of the Community, Economic and Recreational

21

Development Committee of the Senate, the chairman and minority

22

chairman of the Appropriations Committee of the House of

23

Representatives and the chairman and the minority chairman of

24

the Gaming Oversight Committee of the House of Representatives.

25

The report shall include detailed information, including records

26

of expenditures, payments and other distributions made from

27

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

28

include information on all funds received prior to January 31,

29

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

30

January 31 of each year thereafter until all funds under this

- 45 -

 


1

section are distributed or received. An entity that receives

2

funds after the effective date of this section shall submit an

3

initial report by January 31 of the year following receipt of

4

the funds.

5

(g)  Distribution to international airport.--Notwithstanding

6

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

7

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

8

Development and Tourism Fund Capital Budget Itemization Act of

9

2007, following the distribution of $42.5 million of funds

10

allocated to the county for debt service and economic

11

development projects for an international airport in a county of

12

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

13

remaining funds shall be distributed directly to an authority

14

that operates an international airport in a county of the second

15

class.

16

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

17

4 are amended to read:

18

§ 1408.  Transfers from State Gaming Fund.

19

* * *

20

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

21

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

22

the purpose of issuing grants to local law enforcement agencies

23

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

24

all forms of unlawful gambling in this Commonwealth. For

25

purposes of this subsection, the term "local law enforcement

26

agency" shall include Pennsylvania State Police activities in a

27

municipality which does not have a municipal police department

28

for activities in that municipality.

29

* * *

30

§ 1512.  Financial and employment interests.

- 46 -

 


1

* * *

2

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

3

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

4

government positions that meet the definitions of "public

5

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

6

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

7

Administration shall assist the [Ethics Commission] commission 

8

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

9

Pennsylvania Bulletin biennially and on the board's website.

10

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

11

the [Ethics Commission] commission with adequate information to

12

accurately develop and maintain the list. The [Ethics

13

Commission] commission may impose a civil penalty under 65

14

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

15

official or executive-level public employee who fails to

16

cooperate with the [Ethics Commission] commission under this

17

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

18

published by the commission shall not be subject to any penalty

19

for a violation of this section.

20

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

21

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

22

subsection:

23

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

24

the following:

25

(1)  Deputy Secretaries of the Commonwealth and the

26

Governor's Office executive staff.

27

(2)  An employee of the Executive Branch with

28

discretionary power which may affect or influence the outcome

29

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

30

the development of regulations or policies relating to a

- 47 -

 


1

licensed entity or who is involved in other matters under

2

this part. The term shall include an employee with law

3

enforcement authority.

4

(3)  An employee of a county or municipality with

5

discretionary powers which may affect or influence the

6

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

7

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

8

policy relating to a licensed entity or who is involved in

9

other matters under this part. The term shall include an

10

employee with law enforcement authority.

11

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

12

commission, authority or other governmental body not included

13

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

14

may affect or influence the outcome of the governmental

15

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

16

development of regulation or policy relating to a licensed

17

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

18

The term shall include an employee with law enforcement

19

authority.]

20

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

21

hold, debt or equity securities or other ownership interest or

22

profits interest. A financial interest shall not include any

23

debt or equity security, or other ownership interest or profits

24

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

25

following:

26

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

27

employee, public official, party officer or immediate family

28

member thereof may not exercise any managerial control or

29

receive income during the tenure of office and the period

30

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

- 48 -

 


1

apply only to blind trusts established prior to the effective

2

date of this paragraph.

3

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

4

sharing plan, individual retirement account, tax-sheltered

5

annuity, a plan established pursuant to section 457 of the

6

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

7

1 et seq.) or any successor provision deferred compensation

8

plan whether qualified or not qualified under the Internal

9

Revenue Code of 1986 or any successor provision or other

10

retirement plan that:

11

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

12

(ii)  is advised by an independent investment adviser

13

who has sole authority to make investment decisions with

14

respect to contributions made by the individual to these

15

plans.

16

(3)  A tuition account plan organized and operated

17

pursuant to section 529 of the Internal Revenue Code of 1986

18

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

19

directed by the individual.

20

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

21

fund in a licensed entity does not constitute a controlling

22

interest as defined in this part.

23

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

24

child.

25

"Law enforcement authority."  The power to conduct

26

investigations of or to make arrests for criminal offenses.

27

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

28

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

29

State committee or member of the executive committee of a State

30

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

- 49 -

 


1

or treasurer of a county committee in which a licensed facility

2

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

3

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

4

licensed facility is located.

5

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

6

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

7

Governor's cabinet, Treasurer, Auditor General and Attorney

8

General of the Commonwealth.

9

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

10

of the Commonwealth.

11

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

12

a county or municipality that directly receives a

13

distribution of revenue under this part.

14

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

15

agency, board, commission, authority or other governmental

16

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

17

receives a distribution of revenue under this part.

18

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

19

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

20

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

21

(3) with discretionary power which may influence or affect

22

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

23

the development of regulation or policy relating to a

24

licensed entity or who is involved in other matters under

25

this part.

26

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

27

individual who held an uncompensated office with a governmental

28

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

29

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

30

advisory board or commission which makes recommendations

- 50 -

 


1

relating to a licensed facility.

2

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

3

§ 1516.1.  Prosecutorial and adjudicatory functions.

4

The board shall adopt regulations and procedures necessary to

5

ensure that the Bureau of Investigations and Enforcement is a

6

distinct administrative entity and to prevent commingling of the

7

investigatory and prosecutorial functions of the Bureau of

8

Investigations and Enforcement under section 1517 (relating to

9

investigations and enforcement) and the adjudicatory functions

10

of the board.

11

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

12

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

13

subparagraphs and subsection (c) is amended by adding a

14

paragraph to read:

15

§ 1517.  Investigations and enforcement.

16

* * *

17

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

18

Investigations and Enforcement shall have the following powers

19

and duties:

20

* * *

21

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

22

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

23

review may include the review of accounting, administrative

24

and financial records, management control systems, procedures

25

and other records utilized by a licensed entity.

26

* * *

27

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

28

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

29

Enforcement Counsel which shall act as the prosecutor in all

30

noncriminal enforcement actions initiated by the bureau under

- 51 -

 


1

this part and shall have the following powers and duties:

2

* * *

3

(iv)  Petition the board for the appointment of a

4

trustee under section 1332 (relating to appointment of

5

trustee).

6

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

7

immunity of witnesses), the Commonwealth Court may grant

8

an immunity order, in the course of an investigation or

9

hearing conducted under this part, a person refuses to

10

answer a question or to produce evidence on the grounds

11

that the answer or evidence will expose the person to

12

criminal prosecution. The chief enforcement counsel of

13

the bureau may petition the Commonwealth Court for a

14

grant of immunity that includes the specific question to

15

be posed or information or evidence being sought from the

16

person as follows:

17

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

18

the Attorney General and the district attorney of the

19

person's county of residence who may object to the

20

petition.

21

(B)  The court shall hold an in camera proceeding

22

with the person to hear the evidence that will be

23

offered if the order to produce evidence is granted.

24

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

25

person to answer or produce evidence with immunity

26

if:

27

(I)  the testimony or other information from

28

a witness may be necessary to the public

29

interest; and

30

(II)  a witness has refused or is likely to

- 52 -

 


1

refuse to testify or provide other information on

2

the basis of his privilege against self-

3

incrimination.

4

(D)  The court shall grant or deny the request

5

for immunity within 45 days of the filing of the

6

request.

7

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

8

immunity order provides the answer or evidence, the

9

person shall be immune from criminal prosecution

10

based on the answer or evidence that was the subject

11

of the immunity order.

12

(F)  The person may be prosecuted for perjury

13

committed in the answer or production of evidence or

14

held in contempt for failing to give an answer or

15

produce evidence in accordance with the order. The

16

answer or evidence shall be admissible against the

17

person only in a criminal investigation, or a trial

18

or other proceeding for perjury or contempt.

19

(G)  Immunity under this paragraph shall not

20

preclude the use of any other remedy or sanction

21

authorized by law.

22

* * *

23

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

24

Pennsylvania State Police shall have the following powers and

25

duties:

26

* * *

27

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

28

Pennsylvania State Police shall submit a report to the

29

Appropriations Committee of the Senate, the Community,

30

Economic and Recreational Development Committee of the

- 53 -

 


1

Senate, the Appropriations Committee of the House of

2

Representatives and the Gaming Oversight Committee of the

3

House of Representatives. The report shall summarize law

4

enforcement activities at each licensed facility during the

5

previous calendar year and shall include all of the

6

following:

7

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

8

(ii)  A list of specific offenses charged for each

9

offense.

10

(iii)  The number of criminal prosecutions resulting

11

from arrests.

12

(iv)  The number of convictions resulting from

13

prosecutions.

14

(v)  The number of Pennsylvania State Police troopers

15

assigned to each licensed facility and to the gaming unit

16

at the Pennsylvania State Police headquarters.

17

(vi)  The number and nature of disciplinary actions

18

taken and complaints made against Pennsylvania State

19

Police troopers in a licensed facility.

20

(vii)  The closest local police station, Pennsylvania

21

State Police station and regional Pennsylvania State

22

Police headquarters to each licensed facility.

23

* * *

24

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

25

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

26

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

27

representing the bureau or the Office of Enforcement Counsel, or

28

an employee of the bureau or office involved in the hearing

29

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

30

officer, chief counsel or member] (Reserved).

- 54 -

 


1

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

2

counsel or a member shall not discuss or exercise any

3

supervisory responsibility over any employee with respect to an

4

enforcement hearing with which the employee is involved] 

5

(Reserved).

6

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

7

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

8

any enforcement proceeding, the chief counsel or member shall be

9

prohibited from participating in the adjudication of that matter

10

and shall designate appropriate individuals to exercise

11

adjudicatory functions.

12

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

13

apply to any of the following:

14

(1)  An application submitted before the effective date

15

of this section.

16

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

17

date of this section.

18

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

19

the effective date of this section.

20

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

21

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

<--

22

Consolidated Statutes is amended and the section is amended by

23

adding paragraphs to read:

24

§ 1102.  Legislative intent.

25

The General Assembly recognizes the following public policy

26

purposes and declares that the following objectives of the

27

Commonwealth are to be served by this part:

28

* * *

29

(2.1)  The legalization of table games as authorized in

30

this part is intended to supplement slot machine gaming by

- 55 -

 


1

increasing revenues to the Commonwealth and providing new

2

employment opportunities by creating skilled jobs for

3

individuals related to the conduct of table games at licensed

4

facilities in this Commonwealth.

5

* * *

6

(10.1)  The General Assembly has a compelling interest in

7

protecting the integrity of both the electoral process and

8

the legislative process by preventing corruption and the

9

appearance of corruption which may arise through permitting

10

campaign contributions by the gaming industry.

11

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

12

regulatory control and legislative oversight over the

13

operation of slot machines and table games in this

14

Commonwealth; to prevent the actual or appearance of

15

corruption that may result from [large] campaign

16

contributions; ensure the bipartisan administration of this

17

part; and avoid actions that may erode public confidence in

18

the system of representative government.

19

(11.1)  Completely banning campaign contributions by

20

certain individuals and entities subject to this act is

21

necessary to prevent corruption, or the appearance of

22

corruption, that may arise when politics and gaming are

23

intermingled.

24

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

25

authorize the operation of slot machines and table games

26

under a single slot machine license issued to a slot machine

27

licensee under this part.

28

Section 2.  The definitions of "associated equipment,"

29

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

30

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

- 56 -

 


1

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

2

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

3

is amended by adding definitions to read:

4

§ 1103.  Definitions.

5

The following words and phrases when used in this part shall

6

have the meanings given to them in this section unless the

7

context clearly indicates otherwise:

8

* * *

9

"Associated equipment."  Any equipment or mechanical,

10

electromechanical or electronic contrivance, component or

11

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

12

games, including linking devices which connect to progressive

13

slot machines or slot machines, replacement parts, equipment

14

which affects the proper reporting and counting of gross

15

terminal revenue and gross table game revenue, computerized

16

systems for controlling and monitoring slot machines or table

17

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

18

computer to which all slot machines communicate and devices for

19

weighing or counting money.

20

* * *

21

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

22

against a certificate holder rather than against one another.

23

* * *

24

"Cash."  United States currency and coin.

25

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

26

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

27

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

28

(2)  Travelers checks.

29

(3)  Foreign currency and coin.

30

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

- 57 -

 


1

(5)  Personal checks or drafts.

2

(6)  A negotiable instrument applied against credit

3

extended by a certificate holder, a recognized credit card

4

company or a financial institution.

5

(7)  Any other instrument that the Pennsylvania Gaming 

6

Control Board deems a cash equivalent. Other than recognized 

7

credit cards or credit extended by a certificate holder, all

8

instruments that constitute a cash equivalent shall be made

9

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

10

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

11

be considered a cash equivalent and shall be prohibited.

12

* * *

13

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

14

table games operation certificate from the Pennsylvania Gaming

15

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

16

games).

17

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

18

from any patron, slot machine licensee or the Commonwealth,

19

including causing, aiding, abetting or conspiring with another

20

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

21

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

22

which determine:

23

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

24

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

25

game or table game.

26

(3)  The value of a wagering instrument.

27

(4)  The value of a wagering credit.

28

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

29

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

30

or repair with the approval of a slot machine licensee.

- 58 -

 


1

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

2

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

3

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

4

include any device used to alter slot machines or table game

5

devices without the approval of a slot machine licensee.

6

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

7

by and redeemable with the issuing certificate holder for use in

8

playing a table game at the certificate holder's licensed

9

facility.

10

* * *

11

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

12

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

13

approved by the Pennsylvania Gaming Control Board at a licensed

14

facility.

15

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

16

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

17

or players are required to pay consideration to participate in

18

the competition.

19

* * *

20

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

21

contendere, whether or not a judgment of sentence has been

22

imposed as determined by the law of the jurisdiction in which

23

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

24

that has been expunged or overturned or for which an individual

25

has been pardoned or had an order of Accelerated Rehabilitative

26

Disposition entered.

27

* * *

28

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

29

designated for counting, wrapping and recording a slot machine

30

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

- 59 -

 


1

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

2

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

3

certificate holder's licensed facility.

4

* * *

5

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

6

by the Pennsylvania Gaming Control Board, is a mechanical,

7

electrical or computerized contrivance, terminal, machine or

8

other device approved by the Pennsylvania Gaming Control Board

9

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

10

object therein or upon payment of any consideration whatsoever,

11

including the use of any electronic payment system, is playable

12

or operable without either the required assistance of or

13

required interaction with a gaming employee. The term does not

14

include a slot machine.

15

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

16

the following:

17

(1)  Deputy Secretaries of the Commonwealth and the

18

Governor's Office executive staff.

19

(2)  An employee of the executive branch with

20

discretionary power which may affect or influence the outcome

21

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

22

the development of regulations or policies relating to a

23

licensed entity or who is involved in other matters under

24

this part. The term shall include an employee with law

25

enforcement authority.

26

(3)  An employee of a county or municipality with

27

discretionary powers which may affect or influence the

28

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

29

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

30

policy relating to a licensed entity or who is involved in

- 60 -

 


1

other matters under this part. The term shall include an

2

employee with law enforcement authority.

3

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

4

commission, authority or other governmental body not included

5

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

6

may affect or influence the outcome of the governmental

7

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

8

development of regulation or policy relating to a licensed

9

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

10

The term shall include an employee with law enforcement

11

authority.

12

* * *

13

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

14

including, but not limited to:

15

(1)  Cashiers.

16

(2)  Change personnel.

17

(3)  [Counting] Count room personnel.

18

(4)  Slot attendants.

19

(5)  Hosts or other persons authorized to extend

20

complimentary services.

21

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

22

or table game device technicians.

23

(7)  Security personnel.

24

(8)  Surveillance personnel.

25

(9)  Supervisors and managers.

26

(10)  Boxmen.

27

(11)  Dealers or croupiers.

28

(12)  Floormen.

29

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

30

license whose duties are directly involved with the repair or

- 61 -

 


1

distribution of slot machines, table game devices and associated

2

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

3

this Commonwealth as determined by the Pennsylvania Gaming

4

Control Board. The term does not include bartenders, cocktail

5

servers or other persons engaged solely in preparing or serving

6

food or beverages, clerical or secretarial personnel, parking

7

attendants, janitorial, stage, sound and light technicians and

8

other nongaming personnel as determined by the board.

9

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

10

representative for an individual who is all of the following:

11

(1)  Selected or approved for participation in the

12

arrangement based on the individual's ability to satisfy

13

specific financial qualifications.

14

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

15

licensed facility for the purpose of gaming.

16

(3)  Receives as consideration for participation in the

17

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

18

lodging or entertainment which are directly or indirectly

19

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

20

a slot machine licensee.

21

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

22

machine licensee, who employs or otherwise engages the services

23

of a gaming junket representative to arrange gaming junkets to a

24

license facility, regardless of whether the activities of the

25

gaming junket enterprise occur within this Commonwealth.

26

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

27

employee of a slot machine licensee who arranges and negotiates

28

the terms of a gaming junket or selects individuals to

29

participate in a gaming junket to a licensed facility,

30

regardless of whether the activities of the gaming junket

- 62 -

 


1

enterprise occur within this Commonwealth.

2

"Gaming school."  Any educational institution which is

3

approved by the the Department of Education as an accredited

4

college or university, community college, Pennsylvania private

5

licensed school or its equivalent and which is approved by the

6

Pennsylvania Gaming Control Board in consultation with the

7

Department of Education to provide education and training

8

related to employment opportunities associated with slot

9

machines or table games, including slot machine, table game 

10

device and associated equipment maintenance and repair.

11

"Gaming service provider."  A person that:

<--

12

(1)  provides goods or services to a slot machine

13

licensee or an applicant for a slot machine license;

14

(2)  provides goods or services at a licensed facility;

15

and

16

(3)  is not required to be licensed as a manufacturer,

17

manufacturer designee, supplier, management company or gaming

18

junket enterprise.

19

"Gross table game revenue."  The total of:

20

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

21

a table game minus the total of:

22

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

23

a result of playing a table game.

24

(ii)  Cash paid to purchase annuities to fund prizes

25

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

26

playing a table game.

27

(iii)  The actual cost paid by the certificate holder

28

for any personal property distributed to a patron as a

29

result of playing a table game. This does not include

30

travel expenses, food, refreshments, lodging or services.

- 63 -

 


1

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

2

game contest or tournament fees shall be calculated as all

3

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

4

administrative fees, imposed by a certificate holder to

5

participate in a table game contest or tournament less cash

6

or actual cost paid by a certificate holder for prizes

7

awarded to tournament or contest winners.

8

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

9

certificate holder each day.

10

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

11

currency of other countries received in the playing of a table

12

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

13

United States currency; cash taken in a fraudulent act

14

perpetrated against a certificate holder for which the

15

certificate holder is not reimbursed.

16

* * *

17

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

18

certificate holder which is attached to, physically connected to

19

or adjacent to the certificate holder's licensed facility at

20

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

21

same parcel of land as the licensed facility.

22

* * *

23

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

24

or department head capacity and who is empowered to make

25

discretionary decisions that regulate slot machine or table game

26

operations, including the general manager and assistant manager

27

of the licensed facility, director of slot operations, director

28

of table games, pit supervisors, shift supervisors, credit

29

supervisors, cashier supervisors, table game managers and

30

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

- 64 -

 


1

director of surveillance, director of marketing, director of

2

management information systems, director of security,

3

comptroller and any employee who supervises the operations of

4

these departments or to whom these department directors or

5

department heads report and such other positions which the

6

Pennsylvania Gaming Control Board shall determine based on

7

detailed analyses of job descriptions as provided in the

8

internal controls of the licensee as approved by the

9

Pennsylvania Gaming Control Board. All other gaming employees

10

unless otherwise designated by the Pennsylvania Gaming Control

11

Board shall be classified as non-key employees.

12

* * *

13

"Licensed entity representative."  A person acting on behalf

14

of or authorized to represent the interest of any applicant,

15

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

16

regarding any matter which may reasonably be expected to come

17

before the board.

18

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

19

which a licensed gaming entity is authorized to place and

20

operate slot machines and, if authorized by the Pennsylvania

21

Gaming Control Board under Chapter 13A (relating to table

22

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

23

licensed racetrack previously authorized pursuant to section

24

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

25

slot machines and any area of a hotel which the Pennsylvania

26

Gaming Control Board determines is suitable to conduct table

27

games.

28

* * *

29

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

30

fabricates, assembles, produces, programs, designs or otherwise

- 65 -

 


1

makes modifications to any slot machine, table game device or

2

associated equipment for use or play of slot machines or table 

3

games in this Commonwealth for gaming purposes.

4

"Manufacturer license."  A license issued by the Pennsylvania

5

Gaming Control Board authorizing a manufacturer to manufacture

6

or produce slot machines, table game devices or associated

7

equipment for use in this Commonwealth for gaming purposes.

8

* * *

9

"Municipal authority."  A body politic and corporate created

10

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

11

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

12

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

13

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

14

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

15

* * *

16

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

17

against one another and in which the certificate holder collects

18

a rake.

19

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

20

determined by the Pennsylvania Gaming Control Board, is not an

21

electronic table game.

22

* * *

23

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

24

of Investigations and Enforcement of the Pennsylvania Gaming

25

Control Board or any applicant, licensee, permittee, registrant

26

or other person appearing of record in any proceeding before the

27

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

28

decision or order of the board.

29

* * *

30

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

- 66 -

 


1

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

2

for playing any nonbanking game.

3

* * *

4

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

5

computerized contrivance, terminal, machine or other device

6

approved by the Pennsylvania Gaming Control Board which, upon

7

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

8

therein or upon payment of any consideration whatsoever,

9

including the use of any electronic payment system except a

10

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

11

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

12

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

13

entitle the person or persons playing or operating the

14

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

15

billets, tickets, tokens or electronic credits to be exchanged

16

for cash or to receive merchandise or anything of value

17

whatsoever, whether the payoff is made automatically from the

18

machine or manually. A slot machine:

19

(1)  May utilize spinning reels or video displays or

20

both.

21

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

22

winning patrons.

23

(3)  May use an electronic credit system for receiving

24

wagers and making payouts.

25

The term shall include associated equipment necessary to conduct

26

the operation of the contrivance, terminal, machine or other

27

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

28

* * *

29

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

30

provides, distributes or services any slot machine, table game

- 67 -

 


1

device or associated equipment for use or play of slot machines

2

or table games in this Commonwealth.

3

"Supplier license."  A license issued by the Pennsylvania

4

Gaming Control Board authorizing a supplier to provide products

5

or services related to slot machines, table games devices or

6

associated equipment to slot machine licensees.

7

* * *

8

"Suspicious transaction."  The acceptance or redeeming of

9

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

10

slot machine licensee or person knows or has reason to believe

11

the transaction:

12

(1)  involves funds derived from illegal activities or is

13

intended or conducted in order to conceal or disguise funds

14

or assets derived from illegal activities;

15

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

16

regulation or to avoid any transaction reporting requirement

17

under the law or regulations of this Commonwealth or the

18

United States, including a plan to structure a series of

19

transactions to avoid any transaction reporting requirement

20

under the laws or regulations of this Commonwealth or the

21

United States; or

22

(3)  has no lawful business or other apparent lawful

23

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

24

would normally be expected to engage and the slot machine

25

licensee or person knows of no reasonable explanation for the

26

transaction after examining the available facts, including

27

the background and possible purpose of the transaction.

28

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

29

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

30

equivalent or any representation of value. The term includes

- 68 -

 


1

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

2

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

3

nonbanking or percentage game approved by the Pennsylvania

4

Gaming Control Board. The term shall also include any game

5

authorized for use in a licensed facility that is used for

6

gaming contests or tournaments in which players compete against

7

one another. The term shall not include:

8

(1)  Lottery games of the Pennsylvania State Lottery as

9

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

10

known as the State Lottery Law.

11

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

12

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

13

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

14

or harness horse racing as authorized under the act of

15

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

16

Industry Reform Act.

17

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

18

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

19

Option Small Games of Chance Act.

20

(5)  Slot machine gaming and progressive slot machine

21

gaming as defined and authorized under this part.

22

(6)  Keno.

23

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

24

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

25

mechanical, electrical or computerized contrivance, terminal,

26

machine or other device, apparatus, equipment or supplies

27

approved by the Pennsylvania Gaming Control Board and used to

28

conduct a table game.

29

"Table game operation certificate."  A certificate from the

30

Pennsylvania Gaming Control Board that authorizes a slot machine

- 69 -

 


1

licensee to conduct table games in accordance with this part.

2

"Tournament."  An organized series of table game contests

3

approved by the Pennsylvania Gaming Control Board.

4

"Trustee."  A person appointed by the Pennsylvania Gaming

5

Control Board to manage and control the operations of a licensed

6

facility to ensure compliance with this part and who has the

7

fiduciary responsibility to make decisions for the benefit of

8

the licensed gaming entity and the Commonwealth.

9

* * *

10

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

11

(14) and (15), (i)(1) and (k) of Title 4 are amended, subsection

<--

12

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

13

by adding a subsection subsections to read:

<--

14

§ 1201.  Pennsylvania Gaming Control Board established.

15

* * *

16

(f)  Qualified majority vote.--

17

* * *

18

(3)  Notwithstanding any other provision of this part or

19

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

20

member shall disclose the nature of his disqualifying

21

interest, disqualify himself and abstain from voting in a

22

proceeding under this part in which his objectivity,

23

impartiality, integrity or independence of judgment may be

24

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

25

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

26

legislative appointee has disqualified himself, the qualified

27

majority shall consist of all of the remaining legislative

28

appointees and at least two gubernatorial appointees.

29

* * *

30

(h)  Qualifications and restrictions.--

- 70 -

 


1

* * *

2

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

3

his immediate family shall divest any financial interest in

4

any applicant, licensed facility or licensed entity and in an

5

affiliate, intermediary, subsidiary or holding company

6

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

7

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

8

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

9

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

10

financial interest in any applicant, licensed facility or

11

licensed entity or in an affiliate, intermediary, subsidiary

12

or holding company thereof. For purposes of this paragraph,

13

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

14

or unemancipated child.

15

* * *

16

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

17

hearing or proceeding or participate in any other activity on

18

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

19

intermediary, subsidiary or holding company thereof, or any

20

other licensee or permittee for a period of two years from

21

the termination of term of office.

22

(11)  No member, employee or independent contractor of

23

the board shall accept a complimentary service, wager or be

24

paid any prize from any wager at any licensed facility within

25

this Commonwealth or at any other facility outside this

26

Commonwealth which is owned or operated by a licensed gaming

27

entity or any of its affiliates, intermediaries, subsidiaries

28

or holding companies thereof for the duration of their term

29

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

30

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

- 71 -

 


1

of office, employment or contract with the board. The

2

provisions of this paragraph prohibiting wagering during the

3

term of employment shall not apply to employees or

4

independent contractors of the board who utilize slot

5

machines or table game devices for testing purposes or to

6

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

7

an enforcement investigation.

8

* * *

9

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

10

an independent contractor of the board] whose duties

11

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

12

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

13

adoption of regulations or policy or who has other

14

discretionary authority which may affect the outcome of an

15

action or decision under this part, including the executive

16

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

17

following:

18

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

19

licensed entity, or an affiliate, intermediary,

20

subsidiary or holding company thereof, for a period of

21

[one year] two years after the termination of the

22

employment relating to the conduct of gaming [or contract

23

with the board; or].

24

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

25

or proceeding or participate in any other activity on

26

behalf of any applicant, licensee, permittee or licensed

27

entity, or an affiliate, intermediary, subsidiary or

28

holding company thereof, for a period of two years after

29

termination of the employment [or contract with the

30

board].

- 72 -

 


1

(iii)  As a condition of employment, an employee

2

subject to this paragraph shall sign an affidavit that

3

the employee will not accept employment with or be

4

retained by any applicant, licensed entity or an

5

affiliate, intermediary, subsidiary or holding company

6

thereof for a period of two years from the termination of

7

employment. An applicant or licensed entity or an

8

affiliate, intermediary, subsidiary or holding company

9

thereof shall not employ or retain an individual who

10

signed an affidavit required by this subparagraph. An

11

applicant or licensed entity or an affiliate,

12

intermediary, subsidiary or holding company that

13

knowingly employs or retains an individual in violation

14

of this subparagraph shall be subject to a penalty under

15

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

16

(13.1)  Nothing shall prevent a current or former

17

employee of the board from appearing in any proceeding as a

18

witness where the employee is called to testify concerning

19

any fact or information obtained while employed with the

20

board or related to the performance of duties while so

21

employed.

22

(13.2)  No independent contractor or individual employed

23

by an independent contractor of the board whose duties

24

substantially involve consultation relating to licensing,

25

enforcement or the development or adoption of regulations or

26

policy under this part shall:

27

(i)  Accept employment with or be retained by an

28

applicant or a licensed entity or an affiliate,

29

intermediary, subsidiary or holding company thereof for a

30

period of one year after the termination of the contract

- 73 -

 


1

with the board.

2

(ii)  Appear before the board in any hearing or

3

proceeding or participate in any other activity on behalf

4

of an applicant, licensee, permittee or licensed entity

5

or an affiliate, intermediary, subsidiary or holding

6

company of an applicant, licensee, permittee or licensed

7

entity for a period of two years after termination of the

8

contract with the board. Nothing shall prevent a current

9

or former independent contractor or employee of an

10

independent contractor of the board from appearing in any

11

proceeding as a witness where the independent contractor

12

or employee of the independent contractor is being called

13

to testify concerning any fact or information obtained

14

while contracting with the board or related to the

15

performance of the contract.

16

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

17

contractor or individual employed by an independent

18

contractor of the board under this paragraph shall sign

19

an affidavit to not accept employment with or be retained

20

by any applicant, licensed entity or an affiliate,

21

intermediary, subsidiary or holding company of an

22

applicant, licensed entity or affiliate for a period of

23

one year from the termination of employment. A licensed

24

entity or an affiliate, intermediary, subsidiary or

25

holding company of an applicant, licensed entity or

26

affiliate shall not employ or retain an individual who

27

signed an affidavit required by this subparagraph. A

28

licensed entity or an affiliate, intermediary, subsidiary

29

or holding company thereof that knowingly employs or

30

retains an individual in violation of this subparagraph

- 74 -

 


1

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

2

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

3

board, the executive branch of the Commonwealth or a

4

political subdivision or of the agency or political

5

subdivision employing an employee, the State Ethics

6

Commission shall determine whether the individual's duties

7

substantially involve the development [or adoption] of laws,

8

or the development or adoption of regulations or policy,

9

licensing or enforcement under this part or other

10

discretionary authority which may affect the outcome of an

11

action, proceeding or decision under this part and shall

12

provide a written determination to the employee or the agency

13

or political subdivision employing the employee to include

14

any prohibition under this paragraph. An individual who

15

relies in good faith on a determination under this paragraph

16

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

17

provided that all material facts set forth in the request for

18

a determination are correct.

19

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

20

of the board violates any provision of this section, the

21

appointing authority [or the board may, upon notice and

22

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

23

appointment or]. A member removed under this paragraph shall

24

be prohibited from future appointment to the board and shall

25

be prohibited from applying for a license, permit or other

26

authorization and from becoming an independent contractor of

27

the board, or registering as a licensed entity representative

28

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

29

board. If an employee or independent contractor of the board

30

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

- 75 -

 


1

notice and hearing, terminate the employment or contract, and

2

the person shall be ineligible for future [appointment,]

3

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

4

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

5

of two years thereafter] shall be prohibited from applying

6

for a license, permit or other authorization and from

7

becoming an independent contractor or registering as a

8

licensed entity representative for a period of five years

9

from the date of termination of the employment or contract.

10

* * *

<--

11

(h.4)  Restrictions on appointment of legislators.--No member

12

of the Senate or House of Representatives shall be eligible for

13

appointment as a member of the board during the term of office

14

for which the person was elected and for a period of 12 months

15

thereafter.

16

(i)  Compensation.--

<--

17

(1)  [The Executive Board as established in the act of

18

April 9, 1929 (P.L.177, No.175), known as The Administrative

19

Code of 1929, shall establish the compensation of the

20

members.]

21

(i)  Members, including members serving on the

22

effective date of this subparagraph, shall receive an

23

annual salary of $68,284, except the chairman, who shall

24

receive an annual salary of $71,084.

25

(ii)  Members shall be eligible to receive a cost-of-

26

living adjustment consistent with the provisions of

27

section 3(e) of the act of September 30, 1983 (P.L.160,

28

No.39), known as the Public Official Compensation Law.

29

* * *

30

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

- 76 -

 


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 (2) and (b)(7), (20), (23)

<--

- 77 -

 


1

and (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

(2)  The board shall employ individuals as necessary to

<--

13

carry out the powers and duties of the board, who shall serve

14

at the board's pleasure. An employee of the board shall be

15

considered a State employee for purposes of 71 Pa.C.S. Pt.

16

XXV (relating to retirement for State employees and

17

officers). For the purposes of this paragraph, the board

18

shall not be considered an executive or independent agency

19

under the act of October 15, 1980 (P.L.950, No.164), known as

20

the Commonwealth Attorneys Act. The board shall not take

21

final action in filling the positions of executive director

22

of the board, director of the bureau, chief counsel of the

23

board or director of the Office of Enforcement Counsel until

24

receipt and review of the results of the background

25

investigation under section 1517(c)(1.1) (relating to

26

investigations and enforcement).

27

* * *

28

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

29

power and duty:

30

* * *

- 78 -

 


1

(7)  To administer oaths, examine witnesses and issue

2

subpoenas compelling the attendance of witnesses or the

3

production of documents and records or other evidence[. The

4

provisions of this paragraph shall apply to designated

5

officers and employees.], or to designate officers or

6

employees to perform these duties.

7

* * *

8

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

9

suspend, condition or deny issuance or renewal of a table

10

game operation certificate to a slot machine licensee in

11

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

12

* * *

13

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

14

license and permit applicants, to determine at its discretion

15

the suitability of any person who furnishes or seeks to

16

furnish to a slot machine licensee directly or indirectly any

17

goods, services or property related to slot machines, table

18

games or associated equipment or through any arrangements

19

under which that person receives payment based directly or

20

indirectly on earnings, profits or receipts from the slot

21

machines, table games and associated equipment. The board may

22

require any such person to comply with the requirements of

23

this part and the regulations of the board and may prohibit

24

the person from furnishing the services or property.

25

* * *

26

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

27

license, certificate or permit unless it is satisfied that

28

the applicant has demonstrated by clear and convincing

29

evidence that the applicant is a person of good character,

30

honesty and integrity and is a person whose prior activities,

- 79 -

 


1

criminal record, if any, reputation, habits and associations

2

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

3

regulation and control of slot machine or table game 

4

operations or create or enhance the danger of unsuitable,

5

unfair or illegal practices, methods and activities in the

6

conduct of slot machine or table game operations or the

7

carrying on of the business and financial arrangements

8

incidental thereto.

9

* * *

10

(27.1)  To publish each January in the Pennsylvania

11

Bulletin and on the Pennsylvania Gaming Control Board's

12

Internet website a complete list of all slot machine

13

licensees who filed a petition seeking authorization to

14

conduct table games and the status of each petition or table

15

game operation certificate.

16

* * *

17

(30)  To promulgate rules and regulations necessary for

18

the administration and enforcement of this part, including

19

regulations in cooperation with the Pennsylvania Liquor

20

Control Board and regulations relating to the sale and

21

service of liquor and malt and brewed beverages by licensees.

22

[Except as provided in section 1203 (relating to temporary

23

regulations), regulations] Regulations shall be adopted

24

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

25

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

26

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

27

Review Act.

28

(31)  To collect and post information on its Internet

29

website with sufficient detail to inform the public of the

30

controlling interest or ownership interest of an applicant

- 80 -

 


1

for a slot machine license or a licensed gaming entity or

2

affiliate, intermediary, subsidiary or holding company

3

thereof. The posting shall include:

4

(i)  The names of all persons with a controlling

5

interest in a publicly traded domestic or foreign

6

corporation, partnership, limited liability company or

7

other legal entity.

8

(ii)  The names of all persons with an ownership

9

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

10

domestic or foreign corporation, partnership, limited

11

liability company or other legal entity.

12

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

13

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

14

(iv)  The names of all officers, directors,

15

principals and key employees of a licensed gaming entity.

16

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

17

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

18

Commonwealth and the board to operate a licensed facility and

19

ensure compliance with this part.

20

(33)  To develop regulations, in consultation and

21

collaboration with the State Ethics Commission and the

22

Administrative Office of the Pennsylvania Courts, to govern

23

the postemployment limitations and restrictions of employees

24

of the board who are members of the Pennsylvania Bar and

25

whose duties with the board substantially involve the

26

practice of law.

27

(34)  To review detailed site plans identifying a

28

petitioner's proposed table game area within a licensed

29

facility or any proposed temporary facility to determine the

30

adequacy of the proposed internal and external security and

- 81 -

 


1

proposed surveillance measures.

2

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

3

§ 1202.1.  Code of conduct.

4

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

5

conduct prior to the consideration of any license, permit or

6

registration application. The code of conduct shall supplement

7

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

8

(relating to accountability) and shall provide guidelines

9

applicable to members, employees, independent contractors of the

10

board and the immediate [families] family members of the

11

members, employees and independent contractors of the board to

12

enable them to avoid any perceived or actual conflict of

13

interest and to promote public confidence in the integrity and

14

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

15

adopted under this section shall include registration of

16

licensed entity representatives under subsection (b) and the

17

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

18

(b)  Registration.--

19

(1)  A licensed entity representative shall register with

20

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

21

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

22

business telephone number of both the licensed entity

23

representative and [the] any licensed entity or applicant for

24

licensed entity licensure being represented.

25

(2)  A licensed entity representative shall have an

26

[ongoing] affirmative duty to update its registration

27

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

28

punishable by the board.

29

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

30

registration list which shall contain the information

- 82 -

 


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

- 83 -

 


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 board member may serve as an officer,

5

employee or member of the governing body of a nonprofit

6

entity and may attend, make personal contributions to and

7

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

8

member may permit his name to appear on the letterhead used

9

for fundraising events if the letterhead contains only the

10

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

11

(7)  Not meet or engage in discussions with any

12

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

13

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

14

provides goods, property or services to a slot machine

15

licensee or any other person or entity under the jurisdiction

16

of the board unless the meeting or discussion occurs on the

17

business premises of the board and is recorded in a log

18

maintained for this purpose. The log shall be available for

19

public inspection during the regular business hours of the

20

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

21

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

22

discussion, the names of the participants and a description

23

of the subject matter discussed. The provisions of this

24

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

25

consider matters requiring the physical inspection of the

26

equipment or premises of an applicant or a licensed entity at

27

[their] the location of the licensed facility.

28

(8)  Avoid impropriety and the appearance of impropriety

29

at all times and observe standards and conduct that promote

30

public confidence in the oversight of gaming.

- 84 -

 


1

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

2

relating to the conduct of a member.

3

(c.1)  Prohibitions.--

4

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

5

advising the board on a particular licensing issue or

6

proceeding or employee whose duties relate to licensing and

7

who is advising the board on a particular licensing issue or

8

proceeding shall engage in any ex parte communication with

9

any person.

10

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

11

Enforcement Counsel or an applicant, licensee or permittee in

12

any proceeding shall engage in an ex parte communication with

13

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

14

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

15

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

16

Enforcement Counsel who is involved in a proceeding shall

17

engage in an ex parte communication with a member, an

18

attorney of the Office of Chief Counsel who is advising the

19

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

20

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

21

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

22

a board member, employee or hearing officer shall be recorded

23

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

24

available for public inspection during the regular business

25

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

26

Internet website. The log shall include:

27

(i)  The name of the individual documenting the ex

28

parte communication.

29

(ii)  The date and time of the ex parte

30

communication.

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1

(iii)  The names of all individuals involved in the

2

ex parte communication.

3

(iv)  A description of the subject matter discussed

4

and a summary of the substance of the ex parte

5

communication.

6

(2)  In addition to documenting an ex parte communication

7

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

8

communication and an opportunity to respond shall be provided

9

to all persons directly affected by the anticipated vote or

10

action of the board related to the ex parte communication.

11

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

12

engaged in or received an ex parte communication shall

13

recuse himself from any hearing or other proceeding

14

related to the ex parte communication if the context and

15

substance of the ex parte communication creates

16

substantial reasonable doubt as to the individual's

17

ability to act objectively, independently or impartially.

18

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

19

engaged in or received an ex parte communication who

20

elects not to recuse himself from a hearing or other

21

proceeding shall state his reasons for not recusing

22

himself on the record prior to the commencement of the

23

hearing or proceeding.

24

(iii)  If a legislative appointee recuses himself

25

from any hearing or other proceeding under this section,

26

any qualified majority vote required under this part

27

shall consist of all of the remaining legislative

28

appointees and at least two gubernatorial appointees.

29

(iv)  Failure of a hearing officer or employee who

30

engaged in or received an ex parte communication to

- 86 -

 


1

recuse himself when required under subparagraph (i) from

2

a hearing or other proceeding shall be grounds for appeal

3

to the board.

4

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

5

received an ex parte communication to recuse himself from

6

a hearing or other proceeding when required under

7

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

8

of competent jurisdiction if the board action being

9

appealed could not have occurred without the

10

participation of the board member.

11

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

12

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

13

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

14

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

15

subsection:

16

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

17

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

18

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

19

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

20

reasonably be expected to come before the board in a contested

21

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

22

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

23

hearing officer of the board, Department of Revenue,

24

Pennsylvania State Police, Attorney General or other law

25

enforcement official prior to the beginning of the proceeding

26

solely for the purpose of seeking clarification or correction to

27

evidentiary materials intended for use in the proceedings.

28

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

29

siblings.

30

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

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1

of or representing the interest of any applicant, licensee,

2

permittee or registrant, including an attorney, agent or

3

lobbyist, regarding any matter which may reasonably be expected

4

to come before the board.]

5

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

6

§ 1202.2.  Expenses of regulatory agencies.

7

Members and employees of the board and employees of the

8

department, the Attorney General and the Pennsylvania State

9

Police whose duties substantially involve the regulation of

10

gaming or enforcement under this part and employees of the

11

Auditor General whose duties involve financial audit activities

12

of the board shall only be reimbursed for actual and reasonable

13

expenses incurred during the performance of their duties under

14

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

15

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

16

department, Attorney General, Auditor General or Pennsylvania

17

State Police shall submit a receipt validating the expense

18

incurred. Reimbursements, allowances or other payments in an

19

amount greater than the expenses for which receipts are

20

submitted are prohibited. Receipts and requests for 

<--

21

reimbursement shall be financial records for purposes of the act

22

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

23

Law. Information provided to the board under this subsection may

<--

24

be redacted by the provider of the information.

25

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

26

§ 1204.  Licensed gaming entity application appeals from board.

27

The Supreme Court of Pennsylvania shall be vested with

28

exclusive appellate jurisdiction to consider appeals of any

29

final order, determination or decision of the board involving

30

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

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1

license or table game operation certificate. Notwithstanding the

2

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

3

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

4

(relating to direct appeals from government agencies), the

5

Supreme Court shall affirm all final orders, determinations or

6

decisions of the board involving the approval, issuance, denial

7

or conditioning of a slot machine license or table game

8

operation certificate unless it shall find that the board

9

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

10

decision of the board was arbitrary and there was a capricious

11

disregard of the evidence.

12

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

13

amended and the subsection is amended by adding a paragraph to

14

read:

15

§ 1205.  License or permit application hearing process; public

16

input hearings.

17

* * *

18

(b)  Public input hearing requirement.--

19

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

20

board shall hold at least one public input hearing on the

21

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

22

hearing prior to:

23

(i)  Issuing or renewing a slot machine license.

24

(ii)  Approving the structural redesign of any

25

licensed facility, including a licensed facility located

26

in a city of the first class.

27

(2)  All public input hearings [relating to an

28

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

29

shall be held in the municipality where the licensed facility

30

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

- 89 -

 


1

with the municipality.

2

* * *

3

(4)  In addition to any witnesses scheduled to testify

4

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

5

comment period during which time members of the public may

6

address the board regarding the proposed license or

7

structural redesign of a licensed facility under paragraph

8

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

9

limits on an individual's comments.

10

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

11

§ 1206.  Board minutes and records.

12

* * *

13

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

14

(1)  The following information submitted by an applicant

15

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

16

machine license application character requirements) or

17

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

18

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

19

or other investigation from any source shall be [considered]

20

confidential[.] and withheld from public disclosure:

21

(i)  All information relating to good character,

22

honesty and integrity, including family, habits,

23

reputation, history of criminal activity, business

24

activities, financial affairs and business, professional

25

and personal associations submitted under section 1310(a)

26

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

27

bureau.

28

(ii)  Nonpublic personal information, including

29

telephone numbers, Social Security numbers, educational

30

records, memberships, medical records, tax returns and

- 90 -

 


1

declarations, actual or proposed compensation, financial

2

account records, creditworthiness or a financial

3

condition relating to an applicant, licensee or permittee

4

or the immediate family thereof.

5

(iii)  Documents and information relating to

6

proprietary information, trade secrets, patents or

7

exclusive licenses, architectural and engineering plans

8

and information relating to competitive marketing

9

materials and strategies, which may include customer-

10

identifying information or customer prospects for

11

services subject to competition.

12

(iv)  Security information, including risk prevention

13

plans, detection and countermeasures, location of count

14

rooms, emergency management plans, security and

15

surveillance plans, equipment and usage protocols and

16

theft and fraud prevention plans and countermeasures.

17

(v)  Information with respect to which there is a

18

reasonable possibility that public release or inspection

19

of the information would constitute an unwarranted

20

invasion into personal privacy of any individual as

21

determined by the board.

22

(vi)  Records of an applicant or licensee not

23

required to be filed with the Securities and Exchange

24

Commission by issuers that either have securities

25

registered under section 12 of the Securities Exchange

26

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

27

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

28

Securities Exchange Act of 1934.

29

(vii)  Records considered nonpublic matters or

30

information by the Securities and Exchange Commission as

- 91 -

 


1

provided by 17 CFR 200.80 (relating to commission records

2

and information).

3

(viii)  Any financial information deemed confidential

4

by the board upon a showing of good cause by the

5

applicant or licensee.

6

(2)  No claim of confidentiality shall be made regarding

7

any information from a criminal history record check that is

8

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

9

to noncriminal justice agencies and individuals).

10

(3)  This subsection shall not apply to any information

11

in possession of the board that is otherwise publicly

12

available from another public agency in this Commonwealth or

13

another jurisdiction.

14

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

15

[investigation] investigations and enforcement), the

16

information made confidential pursuant to this section shall

17

be withheld from public disclosure in whole or in part,

18

except that any confidential information shall be released

19

upon the lawful order of a court of competent jurisdiction

20

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

21

authorized law enforcement agency or shall be released to the

22

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

23

is requested by an applicant and does not otherwise contain

24

confidential information about another person.

25

(5)  The board may seek a voluntary waiver of

26

confidentiality from an applicant or licensed entity but may 

27

not require any applicant or licensed entity to waive any

28

confidentiality provided for in this subsection as a

29

condition for the approval of a license or any other action

30

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

- 92 -

 


1

current or former board member, employee or independent

2

contractor of the board and any current or former member or

3

employee of the Pennsylvania State Police, Office of Attorney

4

General, Office of the Auditor General or department who

5

publicly discloses confidential information in violation of

6

this subsection shall be administratively disciplined by

7

discharge, suspension, termination of contract or other

8

formal disciplinary action as [the board deems] appropriate.

9

* * *

10

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

11

amended and the section is amended by adding a paragraph to

12

read:

13

§ 1207.  Regulatory authority of board.

14

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

15

* * *

16

(4)  Require that each licensed entity provide to the

17

board its audited annual financial statements, with such

18

additional detail as the board from time to time shall

19

require, which information shall be submitted not later than

20

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

21

* * *

22

(7.1)  Enforce prescribed hours for the operation of

23

table games so that a certificate holder may conduct table

24

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

25

of patrons or to meet competition.

26

(8)  Require that each licensed gaming entity prohibit

27

persons under 21 years of age from operating or using slot

28

machines or playing table games.

29

* * *

30

(14)  Consult with members of the Pennsylvania State

- 93 -

 


1

Police, the Office of Attorney General, the department and

2

such other persons it deems necessary for advice regarding

3

the various aspects of the powers and duties imposed on it

4

under this part and its jurisdiction over the authorization

5

and operation of slot machines, table games and licensed

6

facilities.

7

* * *

8

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

9

Title 4 are amended to read:

10

§ 1208.  Collection of fees and fines.

11

The board has the following powers and duties:

12

(1)  To levy and collect fees from the various

13

applicants, licensees and permittees to fund the operations

14

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

15

fees shall be deposited into the State Gaming Fund as

16

established in section 1403 (relating to establishment of

17

State Gaming Fund and net slot machine revenue distribution)

18

and distributed to the board upon appropriation by the

19

General Assembly. In addition to the fees set forth in

20

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

21

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

22

shall assess and collect fees as follows:

23

(i)  Supplier licensees shall pay [a]:

24

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

25

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

26

supplier license.] to supply slot machines or

27

associated equipment used in connection with slot

28

machines.

29

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

30

license to supply table game devices or associated

- 94 -

 


1

equipment used in connection with table games or

2

table game devices.

3

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

4

the appropriate supplier license. Upon the extension

5

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

6

(relating to supplier licenses), the fee shall be

7

$30,000 for the renewal.

8

(ii)  Manufacturer licensees shall pay [a]:

9

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

10

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

11

manufacturer license.] to manufacture slot machines

12

and associated equipment used in connection with slot

13

machines.

14

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

15

license to manufacture table game devices or

16

associated equipment used in connection with table

17

games or table game devices.

18

(C)  A manufacturer licensee shall pay an annual

19

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

20

appropriate manufacturer license. Upon the extension

21

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

22

(relating to manufacturer licenses), the fee shall be

23

$75,000 for the renewal.

24

(iii)  Each application for a slot machine license,

25

supplier license or manufacturer license must be

26

accompanied by a nonrefundable fee set by the board for

27

the cost of each individual requiring a background

28

investigation. The reasonable and necessary costs and

29

expenses incurred in any background investigation or

30

other investigation or proceeding concerning any

- 95 -

 


1

applicant, licensee, permittee or registrant shall be

2

reimbursed to the board by those persons.

3

* * *

4

§ 1209.  Slot machine license fee.

5

* * *

6

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

7

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

8

the board upon good cause consistent with the license

9

requirements as provided for in this part. Slot machine

10

licensees shall be required to update the information in their

11

initial applications annually, and the license of a licensee in

12

good standing shall be updated and renewed annually for two

13

subsequent years following the initial license issuance.

14

Thereafter, license renewals shall be 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. As to the renewal

19

of a license, no additional license fee pursuant to subsection

20

(a) shall be required.

21

* * *

22

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

23

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

24

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

25

license shall be returned to each licensee in the event

26

section 1201 (relating to Pennsylvania Gaming Control Board

27

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

28

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

29

amended or otherwise altered by an act of the General

30

Assembly within five years following the initial issuance of

- 96 -

 


1

any slot machine licenses pursuant to section 1301 (relating

2

to authorized slot machine licenses) to change:

3

(i)  the composition of the board;

4

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

5

board;

6

(iii)  the manner in which members are nominated or

7

appointed to the board;

8

(iv)  the length of term for which each member

9

serves;

10

(v)  the general jurisdiction of the board in a

11

manner that impairs or otherwise reduces the board's

12

licensing authority; or

13

(vi)  section 1307 to increase the statutory maximum

14

number of permissible licensed facilities.

15

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

16

altered by an act of the General Assembly as described

17

pursuant to paragraph (1):

18

(i)  In the sixth year following the initial issuance

19

of any slot machine licenses pursuant to section 1301, a

20

Category 1 and 2 slot machine licensee shall be entitled

21

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

22

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

23

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

24

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

25

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

26

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

27

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

28

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

29

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

30

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

- 97 -

 


1

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

2

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

3

entitled to a partial return of the one-time machine

4

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

5

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

6

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

7

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

8

license fee. Notwithstanding the foregoing, no slot machine

9

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

10

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

11

implements a recommendation made by the board pursuant to a

12

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

13

of the slot machine license fee imposed pursuant to subsection

14

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

15

returned to any slot machine licensee shall be reduced on a

16

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

17

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

18

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

19

combined with the total tax credits granted, exceed the amounts

20

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

21

partial return of the slot machine license fee shall extinguish

22

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

23

subsection (c).]

24

§ 1210.  Number of slot machines.

25

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

26

slot machine licensees under section 1305 (relating to Category

27

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

28

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

29

licensed facility and shall be required to operate and make

30

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

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1

licensed facility within one year of the issuance by the board

2

of a slot machine license unless otherwise extended by the

3

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

4

additional period not to exceed 24 months.

5

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

6

for Category 3 slot machine licensees under section 1305 and

7

during the conversion from a temporary to a permanent facility,

8

approved renovations for a limited time or an emergency, all

9

slot machine licensees shall be required to operate and make

10

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

11

licensed facility at all times.

12

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

13

Category 3 slot machine licensees under section 1305, six months

14

following the date of commencement of slot machine operations,

15

the board may permit a slot machine licensee to install and

16

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

17

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

18

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

19

considering such an application, shall take into account the

20

appropriateness of the physical space where the additional slot

21

machines will be located and the convenience of the public

22

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

23

potential benefit to economic development, employment and

24

tourism, enhanced revenues to the Commonwealth and other

25

economic indicators it deems applicable in making its decision.

26

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

27

the beginning of slot machine operations at the licensed

28

facility, no licensed gaming entity may make available for play

29

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

30

machines from the same manufacturer or its affiliate,

- 99 -

 


1

intermediary, subsidiary or holding company. The provisions of

2

this subsection shall not apply to machines purchased pursuant

3

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

4

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

5

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

6

section is amended by adding subsections to read:

7

§ 1211.  Reports of board.

8

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

9

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

10

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

11

the General Assembly on the general operation of the board and

12

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

13

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

14

table game revenue at each licensed [facilities] facility during

15

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

16

collected and, where appropriate, disbursed, the costs of

17

operation of the board, all hearings conducted and the results

18

of the hearings and other information that the board deems

19

necessary and appropriate.

20

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

21

of this subsection, the board shall post by the 15th within 45

<--

22

days of the end of each month on its Internet website a list of

23

all its itemized expenses for the preceding month of employees

24

and members of the board and all itemized expenses of officers

25

and employees of the department, the Attorney General and the

26

Pennsylvania State Police whose duties involve the regulation of

27

gaming under this part and all itemized expenses of officers and

28

employees of the Auditor General whose duties involve audit

29

activities of the board. The list lists shall identify the

<--

30

nature of the expense, the employee or board member and the

- 100 -

 


1

agency and employee of the agency to which an expense is

2

attributable. The list shall include each expense for which a

3

receipt is submitted to obtain reimbursement. If if the expense

<--

4

is directly attributable to or paid by a licensed gaming entity, 

<--

5

the list shall identify the licensed gaming entity and whether

6

the expense was paid by the licensed gaming entity. By October 1

7

of each year, a final report of all expenses for the preceding

8

fiscal year shall be posted on the board's Internet website. The

9

board, the department, the Attorney General, the Auditor General

10

and the Pennsylvania State Police shall collaborate to develop a

11

uniform system to carry out the requirements of this subsection.

12

Information provided to the board for posting under this 

<--

13

subsection may be redacted by the provider of the information.

14

* * *

15

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

16

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

17

of the board required to be submitted to the General Assembly

18

under this part after the effective date of this subsection

19

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

20

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

21

§ 1211.1.  Report by slot machine licensee.

22

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

23

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

24

the General Assembly a report on minors and unauthorized gaming.

25

The report shall include the following information for the

26

licensed facility that the licensee is licensed to operate:

27

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

28

licensed facility.

29

(2)  The number of minors who were physically escorted

30

from the premises of the licensed facility.

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1

(3)  The number of minors who were detected participating

2

or attempting to participate in slot machine and table

<--

3

gaming.

4

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

5

a law enforcement agency on the premises of the licensed

6

facility.

7

(5)  The number of minors who were detected illegally

8

consuming alcohol on the premises of the licensed facility IN

<--

9

the area where slot machines or table games are located.

<--

10

(6)  The number of self-excluded and excluded persons who

<--

11

were denied entry into the table game facility area where

<--

12

table games, including tournaments and contests are located.

13

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

14

licensee in resolution of incidents under paragraphs (1),

15

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

16

or disposition of any violations of this part.

17

(8)  A summary of actions taken and controls implemented

18

by the slot machine licensee to prevent facility access by

<--

19

minors and to prevent underage gaming and underage drinking

<--

20

in the licensed facility.

<--

21

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

22

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

23

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

24

read:

25

§ 1212.  Diversity goals of board.

26

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

27

Assembly that the board promote and ensure diversity in all

28

aspects of the gaming activities authorized under this part. The

29

board shall work to enhance the representation of diverse groups

30

in [the]:

- 102 -

 


1

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

2

licensed entities and licensed facilities in this

3

Commonwealth [and through the].

4

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

5

business enterprises associated with or utilized by licensed

6

entities and licensed facilities and through the provision of

7

goods and services utilized by slot machine licensees under

8

this part.

9

(3)  The operation of licensed entities and licensed

10

facilities and the conduct of slot machine and table gaming

<--

11

in this Commonwealth by ensuring licensed entities and

<--

12

licensed facilities promote the participation of diverse

13

groups by affording equal access to employment opportunities,

14

including key employee, gaming employee, and nongaming

15

employee positions.

16

(4)  The operation of business enterprises associated

17

with or utilized by licensed entities and licensed

<--

18

facilities, including business enterprises that provide

19

goods, property and services utilized by slot machine

20

licensees in this Commonwealth by ensuring these business

21

enterprises promote the participation of diverse groups by

22

affording equal access to employment opportunities.

23

(5)  The construction, renovation or reconstruction of a

24

licensed facility by ensuring that all contracts and

25

subcontracts to be awarded relating to the construction,

26

renovation or reconstruction of a licensed facility contain

27

adequate provisions ensuring all contractors or

28

subcontractors, including any assignees, will promote the

29

participation of diverse groups in any proposed construction,

30

renovation or reconstruction project by affording equal

- 103 -

 


1

access to employment opportunities.

2

(6)  The rendering of professional services to licensed

3

entities and licensed facilities by ensuring licensed

<--

4

entities and licensed facilities promote the participation of

<--

5

diverse groups by affording equal access to professional

6

service contractual opportunities.

7

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

8

investigate and conduct [an annual study] quarterly reviews to

9

evaluate the effectiveness of all diversity plans submitted by

<--

10

applicants for a slot machine license in accordance with section

11

1325 (relating to license or permit issuance) of this part, make

12

recommendations for improvements to such diversity plans and

13

ascertain whether effective and meaningful action has been taken

14

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

15

diverse groups in the ownership, participation and operation of

16

licensed facilities in this Commonwealth, through the ownership

17

and operation of business enterprises associated with or

18

utilized by slot machine and table game licensees, through the

19

provision of goods, property and services utilized by slot

20

machine and table game licensees and through employment

21

opportunities.

22

(c)  Completion of investigation.--The first [study] review 

<--

23

shall be completed six months following the effective date of

24

this [part] section, if practically possible, and [annually] 

<--

25

quarterly thereafter and shall contain recommendations which the 

<--

26

board determines appropriate. Each study review shall contain,

<--

27

at a minimum:

28

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

29

promote and ensure diversity in all aspects of its operation.

30

(2)  A descriptive summary of the following relating to

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1

each slot machine licensee's licensed facility:

2

(i)  Employment and salary range information.

3

(ii)  Employee recruitment and retention programs

4

designed to ensure the participation of diverse groups in

5

employment positions at the licensed facility by the slot

<--

6

machine licensee.

7

(iii)  Minority-owned business enterprise and women-

8

owned business enterprise contracting and subcontracting

9

data.

10

(d)  Facility responsibility Responsibility of slot machine

<--

11

licensee.--Each licensed facility slot machine licensee shall

<--

12

provide information as requested by the board to enable the

13

board to complete the study quarterly reviews required under

<--

14

subsection (c).

15

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

16

"professional services" means those services rendered to a

17

licensed entity or licensed facility slot machine licensee in

<--

18

this Commonwealth, including, but not limited to:

19

(1)  Legal services.

20

(2)  Advertising or public relations services.

21

(3)  Engineering services.

22

(4)  Architectural, landscaping or surveying services.

23

(5)  Accounting, auditing or actuarial services.

24

(6)  Security consultant services.

25

(7)  Computer and information technology services, except

26

telephone service.

27

§ 1213.  License or permit prohibition.

28

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

29

including principals and key employees,] The following apply:

30

(1)  The board shall be prohibited from granting a

- 105 -

 


1

principal license to a person who has been convicted of a

2

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

3

issued a license or permit unless 15 years has elapsed from

4

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

5

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

6

permit to an applicant who has been convicted in any

7

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

8

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

9

prohibited from granting the following:

10

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

11

convicted of a gambling offense in any jurisdiction that

12

is classified as a misdemeanor punishable by imprisonment

13

of more than one year unless 15 years have elapsed from

14

the date of conviction for the offense.

15

(ii)  A key employee, gaming employee permit or

16

license other than a principal license to a person who

17

has been convicted of a felony offense or a gambling

18

offense classified as a misdemeanor punishable by

19

imprisonment of more than one year in any jurisdiction

20

unless 15 years have elapsed from the date of conviction

21

for the offense.

22

(3)  Following the expiration of the prohibition period

23

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

24

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

25

consider the following factors:

26

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

27

position with the licensed entity.

28

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

29

or conduct.

30

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

- 106 -

 


1

offense or conduct occurred.

2

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

3

or conduct was committed.

4

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

5

isolated or a repeated incident.

6

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

7

good conduct in the community, counseling or psychiatric

8

treatment received and the recommendation of persons who

9

have substantial contact with the applicant.

10

(4)  For purposes of this section, a felony offense is an

11

offense punishable by imprisonment for more than five years.

12

Section 10.1.  Title 4 is amended by adding a section 

<--

13

sections to read:

<--

14

§ 1214.  Specific authority to suspend slot machine license.

15

(a)  Conditions.--Any slot machine licensee that is required

16

as a condition of slot machine licensure to make annual payments

17

to a municipality or municipal authority for an economic

18

development project, including any project enumerated in the act

19

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

20

Economic Development and Tourism Fund Capital Budget Itemization

21

Act of 2007, shall enter into a written agreement with the

22

municipality or municipal authority and make the first annual

23

payment required under the agreement by October 15 December 31,

<--

24

2009.

25

(b)  Failure to meet conditions.--If the slot machine

26

licensee and the municipality or municipal authority fail to

27

enter into a written agreement, and the slot machine licensee

28

fails to make the first required annual payment under the

29

written agreement, by October 15, 2009, the board shall

30

immediately suspend the slot machine license and appoint a

- 107 -

 


1

trustee to oversee the operations of the licensed gaming

2

facility. The trustee shall immediately remit the first required

3

annual payment to the municipality or municipal authority on

4

behalf of the slot machine licensee.

5

(c)  Terms of license suspension.--The slot machine license

6

suspension shall remain in effect until the slot machine

7

licensee and the municipality or municipal authority execute a

8

written agreement governing the terms of the required annual

9

payments, including the date on which the payments shall be

10

made, the amount of each annual payment and the duration of the

11

annual payments. The trustee shall establish an account or

12

accounts to place all profits of the slot machine licensee from

13

gaming or other revenues of the slot machine licensee's licensed

14

facility until a written agreement is executed between the slot

15

machine licensee and the municipality or municipal authority.

16

(d)  Violation of written agreement.--If any slot machine

17

licensee that is required as a condition of slot machine

18

licensure to make annual payments to a municipality or municipal

19

authority for an economic development project, including any

20

project enumerated in the Pennsylvania Gaming Economic

21

Development and Tourism Fund Capital Budget Itemization Act of

22

2007, fails to make any required payment in accordance with the

23

terms of any written agreement between the slot machine licensee

24

and the municipality or municipal authority governing the

25

economic development project, the board shall immediately

26

suspend the slot machine license and appoint a trustee to

27

oversee the operations of the licensed gaming facility. The

28

trustee shall continue to make payments to the municipality or

29

municipal authority according to the terms of the written

30

agreement and establish an account or accounts to place the

- 108 -

 


1

profits of the slot machine licensee from gaming or other

2

revenues of the slot machine licensee's licensed facility

3

pending resolution of the payment issue between the slot machine

4

licensee and the municipality or municipal authority.

5

§ 1215.  Auditor General's reports.

<--

6

(a)  Annual audit.--In cooperation with the department and

7

the State Treasurer, the Auditor General shall annually audit

8

and report on the amounts and uses of the distributions made

9

under Chapter 14 (relating to revenues) from the State Gaming

10

Fund, the local share assessment to counties and municipalities,

11

the Pennsylvania Race Horse Development Fund and the

12

Pennsylvania Gaming Economic Development and Tourism Fund.

13

(b)  Internal audit.--Every four years, the Auditor General

14

shall perform an internal audit of the expenses and revenues of

15

the board. In addition to examining the agency's financial

16

statements, the Auditor General shall be entitled to examine

17

original source documents at such times as is believed necessary

18

or may otherwise examine original documents on a random basis

19

designed to ensure the integrity of the audit. The audit shall

20

include the expenses incurred by individual members of the board

21

and reimbursed or otherwise paid for by the board. The Auditor

22

General shall prepare a written report of its audits under this

23

section and submit a copy of the report to the Community,

24

Economic and Recreational Development Committee of the Senate

25

and the Gaming Oversight Committee of the House of

26

Representatives no later than April 1 of each year.

27

Section 10.2.  Section 1305(a)(1), (c), (d) and (e) of Title

28

4 are amended to read:

29

§ 1305.  Category 3 slot machine license.

30

(a)  Eligibility.--

- 109 -

 


1

(1)  A person may be eligible to apply for a Category 3

2

license if the applicant, its affiliate, intermediary,

3

subsidiary or holding company has not applied for or been

4

approved or issued a Category 1 or 2 license and the person

5

is seeking to locate a Category 3 licensed facility in a

6

well-established resort hotel having no fewer than 275 guest

7

rooms under common ownership and having substantial year-

8

round recreational guest amenities. The applicant for a

9

Category 3 license shall be the owner or be a wholly owned

10

subsidiary of the owner of the established resort hotel. [A

11

Category 3 license may only be granted upon the express

12

condition that an individual may not enter a gaming area of

13

the licensee if the individual is not a registered overnight

14

guest of the established resort hotel or if the individual is

15

not a patron of one or more of the amenities provided by the

16

established resort hotel.]

17

* * *

18

(c)  Number of slot machines.--Notwithstanding the number of

19

permissible slot machines as set forth in section 1210 (relating

20

to number of slot machines), a Category 3 license granted under

21

the provisions of this section shall entitle the licensed entity

22

to operate no more than 500 slot machines at the licensed

23

facility, provided, however, the board may increase the number

24

of slot machines by a number not to exceed 1,000 slot machines

25

in the aggregate upon good cause shown by the slot machine

26

licensee and payment of the additional fee pursuant to

27

subsection (d).

28

(d)  Category 3 license fee.--Notwithstanding the one-time

29

slot machine license fee as set forth in section 1209 (relating

30

to slot machine license fee), the board shall impose a one-time

- 110 -

 


1

Category 3 license fee to be paid by each successful applicant

2

in the amount of $5,000,000 to be deposited in the State Gaming

3

Fund. If the board authorizes the operation of more than 500

4

slot machines at a Category 3 facility pursuant to subsection

5

(c), the board shall impose a one-time fee in the amount of

6

$5,000,000 for each additional 250 slot machines. The fee for

7

the additional slot machines shall be in addition to the

8

$5,000,000 fee required to operate 500 slot machines pursuant to

9

subsection (c) and shall be deposited into the General Fund. The

10

provisions of section 1209 relating to term, credit against tax

11

for slot machine licensees, deposit of license fee and change of

12

ownership or control of a license shall be applicable to a

13

Category 3 license fee.

14

(e)  Definitions.--For the purpose of subsection (a), the

15

following words and phrases shall have the meaning given to them

16

in this subsection:

17

"Amenities."  Any ancillary activities, services or

18

facilities in which a registered guest or the transient public[,

19

in return for non-de minimis consideration as defined by board

20

regulation,] may participate at a resort hotel, including, but

21

not limited to, sports and recreational activities and

22

facilities such as a golf course or golf driving range, tennis

23

courts or swimming pool; health spa; convention, meeting and

24

banquet facilities; entertainment facilities; and restaurant

25

facilities.

26

["Patron of the amenities."  Any individual who is a

27

registered attendee of a convention, meeting or banquet event or

28

a participant in a sport or recreational event or any other

29

social, cultural or business event held at a resort hotel or who

30

participates in one or more of the amenities provided to

- 111 -

 


1

registered guests of the resort hotel.]

2

Section 10.3.  Section 1308 of Title 4 is amended by adding a

3

subsection to read:

4

§ 1308.  Applications for license or permit.

5

* * *

6

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

7

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

8

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

9

under this part shall include all arrests and convictions of the

10

applicant. The information shall include:

11

(1)  A brief description of the circumstances surrounding

12

the arrest.

13

(2)  The specific offense charged.

14

(3)  The ultimate disposition of the charges, including

15

the details of any dismissal, plea bargain, conviction or

16

sentence, including any pardon, expungement or order of

17

Accelerated Rehabilitative Disposition.

18

* * *

19

Section 10.4.  Sections 1310 and 1313(c) of Title 4 are

20

amended to read:

21

§ 1310.  Slot machine license application character

22

requirements.

23

(a)  Application.--

24

(1)  Every application for a slot machine license shall

25

include such information, documentation and assurances as may

26

be required to establish by clear and convincing evidence the

27

applicant's suitability, including good character, honesty

28

and integrity. Information shall include, without limitation,

29

information pertaining to family, habits, character,

30

reputation, criminal history background, business activities,

- 112 -

 


1

financial affairs and business, professional and personal

2

associates, covering at least the ten-year period immediately

3

preceding the filing date of the application.

4

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

5

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

6

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

7

pardoned or an order of Accelerated Rehabilitative

8

Disposition has been issued, shall be included with an

9

application and shall be considered by the board as part of

10

the review of the applicant's suitability under paragraph

11

(1).

12

(b)  Civil judgments and law enforcement agency

13

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

14

judgments obtained against the applicant pertaining to antitrust

15

or security regulation laws of the Federal Government, this

16

Commonwealth or any other state, jurisdiction, province or

17

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

18

reference from law enforcement agencies having jurisdiction in

19

the applicant's place of residence and principal place of

20

business, which letter of reference shall indicate that the law

21

enforcement agencies do not have any pertinent information

22

concerning the applicant or, if the law enforcement agency does

23

have information pertaining to the applicant, shall specify the

24

nature and content of that information. If no letters are

25

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

26

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

27

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

28

that the applicant is or was during the period the activities

29

were conducted in good standing with the gaming or casino

30

enforcement or control agency.

- 113 -

 


1

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

2

applicant has held a gaming license in a jurisdiction where

3

gaming activities are permitted, the applicant shall produce a

4

letter of reference from the gaming or casino enforcement or

5

control agency which shall specify the experiences of that

6

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

7

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

8

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

9

under oath which is subject to the penalty for false swearing

10

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

11

period the activities were conducted in good standing with the

12

gaming or casino enforcement or control agency.

13

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

14

license, principal license or key employee license shall be

15

required to apply to the Federal agency deemed appropriate by

16

the board for agency records under the Freedom of Information

17

Act (Public Law 89-554, 5 U.S.C. § 522) pertaining to the

18

applicant and provide the board with the complete record

19

received from the Federal agency. The board may issue a license

20

to the applicant prior to the receipt of information under this

21

subsection.

22

§ 1313.  Slot machine license application financial fitness

23

requirements.

24

* * *

25

(c)  Applicant's ability to pay license fee.--The board shall

26

require each applicant for a Category 1 or 2 slot machine

27

license at the time of application to post a letter of credit or

28

bond in the amount of $50,000,000 to demonstrate the financial

29

ability to pay the slot machine license fee as required in

30

section 1209 (relating to slot machine license fee) if issued a

- 114 -

 


1

slot machine license by the board. Each applicant for a Category

2

3 slot machine license at the time of application shall be

3

required to post a letter of credit or bond in the amount of

4

$5,000,000 to demonstrate the financial ability to pay the

5

Category 3 slot machine license fee as required in section 1305

6

(relating to Category 3 slot machine license) if issued a slot

7

machine license by the board. Each Category 3 slot machine

8

licensee that seeks to increase the number of slot machines in

9

operation at the licensed facility pursuant to section 1305(c)

10

(relating to Category 3 slot machine license) shall be required

11

to post a letter of credit or bond in the amount of $5,000,000

12

to demonstrate the financial ability to pay the additional

13

Category 3 slot machine license fee as required in section

14

1305(d).

15

* * *

16

Section 10.5.  Sections 1317(a) and (c) and 1317.1(a), (b)

17

(5), (c), (d.1) and (e) of Title 4 are amended and the sections

18

are amended by adding subsections to read:

19

§ 1317.  Supplier licenses.

20

(a)  Application.--A manufacturer that elects to contract

21

with a supplier under section 1317.1(d.1) (relating to

22

manufacturer licenses) shall ensure that the supplier is

23

licensed under this section. A person seeking to provide slot

24

machines, table game devices or associated equipment to a slot

25

machine licensee within this Commonwealth through a contract

26

with a licensed manufacturer shall apply to the board for a

27

supplier license.

28

* * *

29

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

30

requirements of subsection (b) have been met or waived under

- 115 -

 


1

subsection (c.1), the board may approve the application and

2

issue the applicant a supplier license consistent with all of

3

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 a licensee of the affirmative duty to notify the

<--

12

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

13

to any information contained in application materials on file

14

with the board.

15

* * *

16

(c.1)  Waiver.--The board shall establish standards and a

17

procedure to allow the board to waive the requirements of this

18

section for any person who holds a supplier license under this

19

section and who seeks to supply table game devices or associated

20

equipment. The board may only waive the requirements of this

21

section if:

22

(1)  The supplier license was issued by the board within

23

a 36-month period immediately preceding the date the supplier

24

licensee files an initial application to supply table game

25

devices or associated equipment.

26

(2)  The person to whom the supplier license was issued

27

affirms there has been no material change in circumstances

28

relating to the license.

29

(3)  The board determines there has been no material

30

change in circumstances relating to the license that

- 116 -

 


1

necessitates, at the discretion of the board, that the

2

requirements of this section not be waived.

3

* * *

4

§ 1317.1.  Manufacturer licenses.

5

(a)  Application.--A person seeking to manufacture slot

6

machines, table game devices and associated equipment for use in

7

this Commonwealth shall apply to the board for a manufacturer

8

license.

9

(b)  Requirements.--An application for a manufacturer license

10

shall be on the form required by the board, accompanied by the

11

application fee, and shall include all of the following:

12

* * *

13

(5)  The type of slot machines, table game devices or

14

associated equipment to be manufactured or repaired.

15

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

16

requirements of subsection (b) have been met or waived under

17

subsection (c.1), the board may approve the application and

18

grant the applicant a manufacturer license consistent with all

19

of the following:

20

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

21

expiration, a license may be renewed in accordance with

22

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

23

one year and shall be subject to renewal annually under

24

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

25

the initial issuance. Thereafter, a license shall be subject

26

to renewal every three years. Nothing in this paragraph shall

27

relieve the licensee of the affirmative duty to notify the

28

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

29

to any other information contained in application materials

30

on file with the board.

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1

(2)  The license shall be nontransferable.

2

(3)  Any other condition established by the board.

3

(c.1)  Waiver.--The board shall establish standards and a

4

procedure to allow the board to waive the requirements of this

5

section for any person who holds a manufacturer license under

6

this section and who seeks to manufacture table game devices or

7

associated equipment. The board may only waive the application

8

requirement under this section if:

9

(1)  The manufacturer license was issued by the board

10

within a 36-month period immediately preceding the date the

11

manufacturer licensee files an application to manufacture

12

table game devices or associated equipment.

13

(2)  The person to whom the manufacturer license was

14

issued affirms there has been no material change in

15

circumstances relating to the license.

16

(3)  The board determines there has been no material

17

change in circumstances of the licensee that necessitates, at

18

the discretion of the board, that the requirements of this

19

section not be waived.

20

* * *

21

(d.1)  Authority.--The following shall apply to a licensed

22

manufacturer:

23

(1)  A licensed manufacturer or its designee, as licensed

24

by the board, may supply or repair any slot machine, table

25

game device or associated equipment manufactured by the

26

licensed manufacturer.

27

(2)  A manufacturer may contract with a supplier under

28

section 1317 (relating to supplier licenses) to provide slot

29

machines or associated equipment to a slot machine licensee

30

within this Commonwealth.

- 118 -

 


1

(3)  A manufacturer may contract with a supplier under

2

section 1317 to provide table games game devices or

<--

3

associated equipment to a certificate holder.

4

(e)  Prohibitions.--

5

(1)  No person may manufacture slot machines, table game

6

devices or associated equipment for use within this

7

Commonwealth by a slot machine licensee unless the person has

8

been issued a manufacturer license as required under this

9

section.

10

(2)  No slot machine licensee may use slot machines,

11

table game devices or associated equipment unless the slot

12

machines, table game devices or associated equipment were

13

manufactured by a person that has been issued a manufacturer

14

license under this section.

15

(3)  No person issued a license under this section shall

16

apply for or be issued a license under section 1317.

17

(4)  No limitation shall be placed on the number of

18

manufacturer licenses issued or the time period to submit

19

applications for licensure, except as required to comply with

20

section 1306 (relating to order of initial license issuance).

21

Section 10.6.  Title 4 is amended by adding a section to

22

read:

23

§ 1317.2.  Gaming service provider.

24

(a)  Development of classification system.--The board shall

25

develop uniform standards and procedures governing the

26

registration regulation of gaming service providers. Each

<--

27

applicant and all individuals and entities associated with the

<--

28

applicant for authorization to act as a gaming service provider

<--

29

shall submit to a background investigation. The classification

30

system developed by the board shall be based upon the following:

<--

- 119 -

 


1

(1)  The monetary value or amount of business conducted

2

or expected to be conducted by the gaming service provider

3

with an applicant for a slot machine licensee or a slot

4

machine licensee in any consecutive 12-month period.

5

(2)  Whether the employees of the gaming service provider

6

will have access to the gaming floor or the restricted area

7

of a licensed facility.

8

(3)  The board's analysis of the goods, property or

9

service provided or to be provided by the gaming service

10

provider in order to ensure the integrity of gaming.

11

(b)  Authority to exempt.--The board may exempt any person or

12

field of commerce from the requirements of this section if the

13

board determines the following:

<--

14

(1)  The the person or field of commerce is regulated by

<--

15

an agency of the Federal Government or an agency of the

16

Commonwealth.; or

<--

17

(2)  Regulation the regulation of the person or field of

<--

18

commerce is determined not to be necessary in order to

19

protect the public interest or the integrity of gaming.

20

(c)  Duties of gaming service providers.--Each gaming service

21

provider shall have a continuing duty to:

22

(1)  Provide all information, documentation and

23

assurances as the board may require.

24

(2)  Cooperate with the board in investigations, hearings

25

and enforcement and disciplinary actions.

26

(3)  Comply with all conditions, restrictions,

27

requirements, orders and rulings of the board in accordance

28

with this part.

29

(4)  Report any change in circumstances that may render

30

the gaming service provider ineligible, unqualified or

- 120 -

 


1

unsuitable for continued licensure.

2

(d)  Requirement for permit.--The board may require employees

3

of a gaming service provider to obtain a permit or other

4

authorization if, after an analysis of duties, responsibilities

5

and functions, the board determines that a permit or other

6

authorization is necessary to protect the integrity of gaming.

7

(e)  Interim authorization.--The board or a designated

8

employee of the board may permit a gaming service provider

9

applicant to engage in business with an applicant for a slot

10

machine license or a slot machine licensee prior to approval of

11

the gaming service provider application if the following

12

criteria have been satisfied:

13

(1)  A completed application has been filed with the

14

board by the gaming service provider.

15

(2)  The slot machine applicant or slot machine licensee

16

contracting or doing business with the gaming service

17

provider certifies that it has performed due diligence on the

18

gaming service provider and believes that the applicant meets

19

the qualification to be a gaming service provider pursuant to

20

this section.

21

(3)  The gaming service provider applicant agrees in

22

writing that the grant of interim authorization to conduct

23

business prior to board approval of its application does not

24

create a right to continue to engage in business if the board

25

determines that the applicant is not suitable and interim

26

authorization is not in the public interest.

27

(f)  Construction.--Nothing in this section shall be

28

construed to prohibit the board from rescinding a grant of

29

interim authorization if, at any time, the suitability of the

30

person subject to interim authorization is at issue or if the

- 121 -

 


1

person fails to cooperate with the board, the bureau or an agent

2

of the board or bureau.

3

(g)  Provider Gaming service provider lists.--The board

<--

4

shall:

5

(1)  Develop and maintain a list of approved gaming

6

service providers and a list of gaming service providers who

<--

7

are authorized to provide goods, property or services under a

8

grant of interim authorization pursuant to subsection (e)(3).

9

(2)  Develop and maintain a list of prohibited gaming

10

service providers. An applicant for a slot machine license or

11

a slot machine licensee may not enter into an agreement or

12

continue to engage in business with a gaming service provider

<--

13

listed on the prohibited gaming service provider list.

14

(h)  Emergency authorization.--A slot machine licensee may

15

utilize a gaming service provider that has not been approved by

16

the board when a threat to public health, welfare or safety

17

exists or circumstances outside the control of the slot machine

18

licensee require immediate action to protect the public

19

interest. The board shall promulgate regulations to govern the

20

use of gaming service providers under emergency circumstances.

21

(i)  Criminal history record information.--If the

22

classification system developed by the board in accordance with

23

subsection (a) requires a gaming service provider or an employee

24

of a gaming service provider to submit to or provide the bureau

25

with a criminal history record check under 18 Pa.C.S. Ch. 91

26

(relating to criminal history record information), the bureau

27

shall notify the slot machine licensee that submitted and

28

verified the application of a person if the person's application

<--

29

has been denied or the person's approval or authorization to

<--

30

provide goods, property or services has been revoked or

- 122 -

 


1

suspended, including the reason for the action taken.

2

Section 10.7.  Sections 1318(c) and 1319 of Title 4 are

3

amended to read:

4

§ 1318.  Occupation permit application.

5

* * *

6

(c)  Prohibition.--No slot machine licensee may employ or

7

permit any person under 18 years of age to render any service

8

whatsoever in any area of its licensed facility [at which] where 

9

slot machines or table games are physically located.

10

§ 1319.  Alternative manufacturer licensing standards.

11

(a)  General rule.--The board may determine whether the

12

licensing standards of another jurisdiction within the United

13

States in which an applicant for a manufacturer license is

14

similarly licensed are comprehensive and thorough and provide

15

similar adequate safeguards as those required by this part. If

16

the board makes that determination, it may issue a manufacturer

17

license to an applicant who holds a similar manufacturer license

18

in such other jurisdiction after conducting an evaluation of the

19

information relating to the applicant from such other

20

jurisdictions, as updated by the board, and evaluating other

21

information related to the applicant received from that

22

jurisdiction and other jurisdictions where the applicant may be

23

licensed, the board may incorporate such information in whole or

24

in part into its evaluation of the applicant.

25

(b)  Abbreviated process.--In the event an applicant for a

26

[slot machine] manufacturer license is licensed in another

27

jurisdiction, the board may determine to use an alternate

28

process requiring only that information determined by the board

29

to be necessary to consider the issuance of a license, including

30

financial viability of the licensee, to such an applicant.

- 123 -

 


1

Nothing in this section shall be construed to waive any fees

2

associated with obtaining a license through the normal

3

application process.

4

Section 10.8.  Title 4 is amended by adding a section to

5

read:

6

§ 1319.1.  Alternative supplier licensing standards.

7

(a)  General rule.--The board may determine whether the

8

licensing standards of another jurisdiction within the United

9

States in which an applicant for a supplier's license is

10

similarly licensed are comprehensive and thorough and provide

11

similar adequate safeguards as required by this part. If the

12

board makes that determination, it may issue a supplier license

13

to an applicant who holds a similar supplier license in another

14

jurisdiction after conducting an evaluation of the information

15

relating to the applicant from the other jurisdictions, as

16

updated by the board and evaluating other information related to

17

the applicant received from that jurisdiction and other

18

jurisdictions where the applicant may be licensed, the board may

19

incorporate the information in whole or in part into its

20

evaluation of the applicant.

21

(b)  Abbreviated process.--In the event an applicant for a

22

supplier license is licensed in another jurisdiction, the board

23

may determine to use an alternate process requiring only the

24

information determined by the board to be necessary to consider

25

the issuance of a license, including financial viability of the

26

licensee to the applicant. Nothing in this section shall be

27

construed to waive any fees associated with obtaining a license

28

through the normal application process.

29

Section 10.9.  Sections 1321, 1326(a), 1328(a)(1) and (d) and

<--

30

1329 of Title 4 are amended to read:

- 124 -

 


1

§ 1321.  Additional licenses and permits and approval of

2

agreements.

3

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

4

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

5

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

6

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

7

person who satisfies any of the following criteria:

8

(1)  The person transacts business within this

9

Commonwealth with a slot machine licensee as a ticket

10

purveyor, tour operator, operator of a bus trip program or

11

operator of any other type of travel program or promotional

12

business related to slot machines or table games. The board

13

may also review, deny, order modification or approve, at its

14

discretion, proposed tours, bus routes and travel programs.

15

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

16

be licensed or permitted under this part and provides any

17

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

18

management contracts for compensation to a slot machine

19

licensee at the licensed facility.

20

(b)  Agreement.--Any agreement to conduct business within

21

this Commonwealth between a person and a slot machine licensee

22

relating to slot machines, table games, table game devices or

<--

23

associated equipment is subject to the approval of the board in

24

accordance with rules and regulations promulgated by the board.

25

Every agreement shall be in writing and shall include a

26

provision for its termination without liability on the part of

27

the slot machine licensee upon a finding by the board that the

28

agreement is not approved or that it is terminated. Failure to

29

expressly include this condition in the agreement is not a

30

defense in any action brought under this section relating to the

- 125 -

 


1

termination of the agreement.

2

§ 1326.  License renewals.

3

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

4

part unless otherwise provided shall be subject to renewal on an

5

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

6

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

7

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

8

following the initial issuance. Thereafter, all permits and

9

licenses shall be subject to renewal every three years. Nothing

10

in this subsection shall relieve a licensee of the affirmative

11

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

12

of its license or to any other information contained in

13

application materials on file with the board. The application

14

for renewal shall be submitted at least 60 days prior to the

15

expiration of the permit or license and shall include an update

16

of the information contained in the initial and any prior

17

renewal applications and the payment of any renewal fee required

18

by this part. The amount of any renewal fee shall be calculated

19

by the board to reflect the longer renewal period. A permit or

20

license for which a completed renewal application and fee, if

21

required, has been received by the board will continue in effect

22

unless and until the board sends written notification to the

23

holder of the permit or license that the board has denied the

24

renewal of such permit or license.

25

* * *

26

§ 1328.  Change in ownership or control of slot machine

27

licensee.

28

(a)  Notification and approval.--

29

(1)  A slot machine licensee shall notify the board

30

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

- 126 -

 


1

or contemplated change of ownership of the slot machine

2

licensee by a person or group of persons acting in concert

3

which involves any of the following:

4

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

5

securities or other ownership interests.

6

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

7

ownership interests of a corporation or other form of

8

business entity that owns directly or indirectly at least

9

20% of the voting or other securities or other ownership

10

interests of the licensee.

11

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

12

business of a licensee's assets.

13

(iv)  Any other transaction or occurrence deemed by

14

the board to be relevant to license qualifications.

15

* * *

16

(d)  Fee reduction.--The board may in its discretion

<--

17

eliminate the need for qualification and/or proportionately

18

reduce, but not eliminate, the new license fee otherwise

19

required pursuant to this section in connection with a change of

20

control of a licensee, depending upon the type of transaction,

21

the relevant ownership interests and changes thereto resulting

22

from the transaction and other considerations deemed relevant by

23

the board. In no case shall the fee be reduced below $10,000,000

24

for a Category 1 or Category 2 license or $1,000,000 for a

25

Category 3 license.

26

* * *

27

§ 1329.  [Nonportability] Portability and relocation of slot

28

machine license.

29

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

30

valid for the specific physical location within the municipality

- 127 -

 


1

and county for which it was originally granted. [No]

2

(b)  Petition.--An applicant for a slot machine license or a

3

slot machine licensee may petition the board to relocate the

4

approved physical location of a licensed facility. In evaluating

5

a petition to relocate, the board shall consider the following

6

factors:

<--

7

(1)  The address of the proposed new location and the

8

reason for the relocation.

9

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

10

detailing estimated gross terminal revenues at the new 

<--

11

proposed location with estimated gross terminal revenues at

<--

12

the original approved physical location.

<--

13

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

14

detailing the economic impact of the licensed facility at the

15

new proposed location with the estimated economic impact at

<--

16

the original approved physical location. The comparative

<--

17

analysis shall include the total cost of the project and

18

projected direct and indirect employment figures.

19

(4)  A comprehensive traffic study commissioned by the

20

board.

21

(5)  Community support or opposition.

22

(6)  Any other information requested by the board.

23

(c)  Relocation.--A slot machine licensee [shall] may be

24

permitted to move or relocate the physical location of the

25

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

26

cause shown if the relocation of the licensed facility:

<--

27

(1)  the relocated licensed facility remains within the

<--

28

same municipality as originally licensed;

29

(2)  the relocation will facilitate the timely operation

<--

30

of slot machines;

- 128 -

 


1

(3)  the relocated licensed facility complies with all

<--

2

other provisions of this part related to the siting and

3

location of a licensed facility; and

4

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

<--

5

interests of the Commonwealth.

6

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

7

public input hearing in the municipality where the licensed

8

facility will be located prior to approval of the relocation.

9

(e)  Restriction.--No grant or loan from the Commonwealth may

10

be awarded for the purpose of relocating or developing the

11

relocated licensed facility to comply with any conditions of

12

approval of the relocation.

13

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

14

§ 1332.  Appointment of trustee.

15

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

16

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

17

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

18

interests of the Commonwealth and the board to assure compliance

19

with this part and any conditions imposed upon the slot machine

20

license in the following circumstances:

21

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

22

slot machine license or a principal license if the principal

23

licensee is the only principal who exercises operational

24

control of the licensed facility.

25

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

26

a principal license if the principal licensee is the only

27

principal who exercises operational control of the licensed

28

facility until the slot machine or principal license is

29

renewed or until the discontinuation of the trusteeship

30

pursuant to subsection (i).

- 129 -

 


1

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

2

Commonwealth.

3

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

4

(1)  A trustee shall be required to qualify as a

5

principal and obtain a principal license pursuant to this

6

part. The board may appoint a trustee and award the trustee a

7

temporary principal license as prescribed in board

8

regulations.

9

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

10

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

11

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

12

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

13

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

14

licensee.

15

(3)  A trustee shall be a resident of this Commonwealth.

16

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

17

exercise only those powers and perform those duties expressly

18

conferred upon the trustee by the board. The board's order

19

appointing the trustee shall set forth the powers, duties and

20

responsibilities of the trustees which may include:

21

(1)  Maintaining and operating the licensed facility in a

22

manner that complies with this part and any conditions

23

imposed by the board.

24

(2)  Maintaining and operating the licensed facility

25

consistent with the measures generally taken in the ordinary

26

course of business including:

27

(i)  Entering into contracts.

28

(ii)  Borrowing money.

29

(iii)  Pledging, mortgaging or otherwise encumbering

30

the licensed facility or property thereof as security for

- 130 -

 


1

the repayment of loans subject to any provisions and

2

restrictions in any existing credit documents.

3

(iv)  Hiring, firing and disciplining employees.

4

(3)  Exercising the rights and obligations of the former

5

or suspended licensee.

6

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

7

machine licensee, including its books, records and papers.

8

(5)  Establishing accounts with financial institutions.

9

An account may not be established with a financial

10

institution in which an affiliate of the former or suspended

11

licensee, or in which the trustee, or an immediate family

12

member of the trustee, has a controlling interest.

13

(6)  Meeting with the former or suspended licensee.

14

(7)  Meeting with principals and key employees at the

15

licensed facility.

16

(8)  Meeting with the independent audit committee.

17

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

18

keeping the board's executive director apprised of actions

19

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

20

(10)  Hiring legal counsel, accountants or other

21

consultants or assistants, with prior approval of the board,

22

as necessary to carry out the trustee's duties and

23

responsibilities.

24

(11)  Settling or compromising with any debtor or

25

creditor of the former or suspended licensee, including any

26

taxing authority.

27

(12)  Reviewing outstanding agreements to which the

28

former or suspended licensee is a party and advising the

29

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

30

subject of scrutiny, examination or investigation by the

- 131 -

 


1

board.

2

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

3

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

4

restructuring, transfer of assets or execution of a contract

5

or any other action taken outside of the ordinary course of

6

business.

7

(14)  Obtaining board approval for any payments outside

8

of those made in the ordinary course of business.

9

Notwithstanding any provision contained in this subsection to

10

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

11

preserve the assets of the licensed gaming entity.

12

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

13

compensation of a trustee and shall review and approve actual

14

and reasonable costs and expenses of the trustee, legal counsel,

15

accountants or other consultants or assistants hired by the

16

trustee and other persons the board may appoint in connection

17

with the trusteeship action. The compensation, costs and

18

expenses shall be paid by the former or suspended licensee.

19

Total compensation for the trustee and all individuals hired or

20

retained by the trustee under subsection (c)(10) shall not

21

exceed $600 per hour in the aggregate, except that the board,

22

upon a finding that unanticipated circumstances exist, may

23

adjust the aggregate hourly rate of compensation.

24

(e)  Reports.--A trustee shall file reports with regard to

25

the administration of the trusteeship with the board in the form

26

and at intervals as the board orders. The board may direct that

27

copies or portions of the trustee's reports be mailed to

28

creditors or other parties in interest and make summaries of the

29

reports available to the public and shall post them on the

30

board's Internet website.

- 132 -

 


1

(f)  Review of actions.--A creditor or party in interest

2

aggrieved by any alleged breach of a delegated power or duty of

3

a trustee in the discharge of the trustee's duties may request a

4

review of the trustee's action or inaction by filing a petition

5

in accordance with board regulations. The petition must set

6

forth in detail the pertinent facts and the reasons why the

7

facts constitute the alleged breach. The board will review any

8

petition filed under this section and take whatever action, if

9

any, it deems appropriate.

10

(g)  Effect of the trusteeship.--After issuance of an order

11

to appoint a trustee, the former or suspended principal or slot

12

machine licensee may not exercise any of its privileges, collect

13

or receive any debts and pay out, sell, assign or transfer any

14

of its property to anyone without prior approval of the

15

appointed trustee and the board.

16

(h)  Disposition of net income.--During the period of

17

trusteeship, net income shall be deposited in an escrow account

18

maintained for that purpose. Payment of net income during the

19

period of trusteeship may not be made by the trustee without the

20

prior approval of the board. A suspended or former principal or

21

slot machine licensee may request distribution of all or a

22

portion of the net income during the period of trusteeship by

23

filing a petition in accordance with board regulation. The

24

suspended or former principal or slot machine licensee shall

25

have the burden of demonstrating good cause for the distribution

26

of the net income requested.

27

(i)  Discontinuation.--The board may issue an order to

28

discontinue a trusteeship when:

29

(1)  The board determines that the cause for which the

30

trustee was appointed no longer exists.

- 133 -

 


1

(2)  The trustee has, with the prior approval of the

2

board, consummated the sale, assignment, conveyance or other

3

disposition of all the property or interest of the former

4

principal or slot machine licensee relating to the slot

5

machine license.

6

(j)  List of approved trustees.--The board shall promulgate

7

regulations to establish a list of persons approved by the board

8

and qualified to serve as a trustee. At a minimum, the

9

regulations shall provide for the following:

10

(1)  The minimum qualifications a person must possess to

11

be approved as a trustee, which shall include qualification

12

as a principal pursuant to this part and possession of a

13

principal license.

14

(2)  The procedure for placement on or removal from the

15

approved trustee list.

16

(3)  Any other information the board deems necessary to

17

carry out the intent of this section.

18

Section 11.1.  Title 4 is amended by adding a chapter to

19

read:

20

CHAPTER 13A

21

TABLE GAMES

22

Subchapter

23

A.  General Provisions

24

B.  Table Games Authorized

25

C.  Table Game Operations

26

D.  (Reserved)

27

E.  Table Game Testing and Certification

28

F.  (Reserved)

29

G.  Table Game Taxes and Fees

30

SUBCHAPTER A

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1

GENERAL PROVISIONS

2

Sec.

3

1301A.  (Reserved).

4

1302A.  Regulatory authority.

5

1303A.  Temporary table game regulations.

6

1304A.  Commonwealth resident employment goals.

7

§ 1301A.  (Reserved).

8

§ 1302A.  Regulatory authority.

9

The board shall promulgate regulations:

10

(1)  Establishing standards and rules for table games,

11

table game devices or associated equipment, including

12

standards distinguishing electronic and nonelectronic table

13

games. The standards shall provide for any new table games

<--

14

and variations or composites of approved table games,

<--

15

provided the Pennsylvania Gaming Control Board determines the  

16

new table game, or any variations or composites or other

<--

17

approved table games are suitable for use after a test or

<--

18

experimental period under the terms and conditions as the

19

Pennsylvania Gaming Control Board may deem appropriate.

20

(2)  Establishing standards to govern the conduct of

21

table games and the system of wagering associated with table

22

games, including the maintenance of financial books, records

23

and audits.

24

(2.1)  Establishing standards for the daily observation

25

of certificate holder counting and recordation processes for

26

cash, cash equivalents and other representations of value

27

received in the conduct of table games.

28

(3)  Establishing patron notice requirements pertaining

29

to minimum and maximum wagers on table games. Minimum and

30

maximum wagers may be adjusted from time to time by the

<--

- 135 -

 


1

certificate holder in the normal course of conducting table

2

games, except that changes in minimum wagers at any given

3

table shall not apply to persons already engaged in wagering

4

at that table game when the minimum wager is changed, unless

<--

5

30 minutes' notice is provided to each player at that table

<--

6

game.

<--

7

(4)  Requiring each certificate holder to:

8

(i)  Provide written information at each operational

9

gaming table about table game rules, payoffs or winning

10

wagers and other information to each player as the board

11

may require.

12

(ii)  Provide specifications approved by the board

13

under section 1207(11) (relating to regulatory authority

14

of board) to integrate and update the licensed facility's

15

surveillance system to cover all areas where table games

16

are conducted. The specifications shall include

17

provisions providing the board and other persons

18

authorized by the board with onsite access to the system

19

or its signal.

20

(iii)  Designate one or more locations within the

21

licensed facility to conduct table games.

22

(iv)  Ensure that visibility in a licensed facility

23

is not obstructed in any way that could interfere with

24

the ability of the certificate holder, the board and

25

other persons authorized by the board to oversee the

26

conduct of table games.

27

(v)  Integrate the licensed facility's count room for

28

slot machine and table game operations to ensure maximum

29

security of the counting and storage of cash, cash

30

equivalents and other representations of value used in

<--

- 136 -

 


1

the conduct and operation of table games as approved by

2

the board.

3

(vi)  Equip each gaming table with a sign indicating

4

the permissible minimum and maximum wagers at the gaming

5

table.

6

(vii)  Adopt policies or procedures to prohibit any

7

table game device, equipment or supplies from being

8

possessed, maintained or exhibited by any person on the

9

premises of a licensed facility except in the areas of a

10

licensed facility where the conduct of table games is

11

authorized or in a restricted area designated to be used

12

for the inspection, service, repair or storage of the

13

table games, table game devices or associated equipment

14

or supplies by the certificate holder.

15

(viii)  Equip all drop boxes in which cash, cash

16

equivalents, fill slips, credit slips, inventory slips or

17

other representations of value are deposited at the

18

gaming tables, and all areas where drop boxes are kept

19

while in use, with two locking devices or keys, of which

20

one locking device or key shall be under the exclusive

21

control of the board, and the second locking device or

22

key shall be under the exclusive control of the

23

certificate holder. The drop boxes shall be brought into

24

or removed from an area where table games are conducted

25

or locked or unlocked in accordance with procedures

26

established by the board.

27

(ix)  Designate secure locations for the inspection

28

and storage of dice, cards, tiles, dominoes, chips and

29

other representations of value used in the conduct of

30

table games as may be approved by the board.

- 137 -

 


1

(5)  Establishing the size and uniform color by

2

denomination of all chips used in the conduct of table games

3

and a policy for the use of promotional or commemorative

4

chips. All types of chips shall be approved by the board

5

prior to being used for play at a table game at a licensed

6

facility.

7

(5.1)  Establishing the procedure to be used by a

8

certificate holder to determine and extract a rake for the

9

purposes of deriving gross table game revenue. The rake may

10

be calculated as a percentage or a flat fee from nonbanking

11

table games.

12

(6)  Establishing minimum standards relating to the

13

acceptance of tips or gratuities by dealers and croupiers at

14

a table game, including the requirement that tips or

15

gratuities be placed in a common pool for complete

16

distribution pro rata among all dealers and croupiers.

17

Nothing in this paragraph shall prohibit a certificate holder

18

from adopting a formal policy relating to acceptance of tips

19

and gratuities, provided that the policy meets the minimum

20

standard established by the board under this paragraph.

21

(7)  Establishing the minimal proficiency requirements

22

for individuals to successfully complete a course of training

23

at an approved school under Chapter 17 (relating to gaming

24

schools). The regulations shall not prohibit a certificate

25

holder from establishing a course of training for its table

26

game employees or prohibit a certificate holder from offering

27

employment to an individual who has not attended or completed

28

a course of instruction at a gaming school and shall require

29

a certificate holder that elects to train its employees to

30

submit a detailed summary of the training program to the

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1

board and to demonstrate the adequacy of the training.

2

(8)  Permitting certificate holders to request

3

authorization to conduct, and to conduct, temporary table

4

game tournaments or other temporary table game contests in

5

which players compete against one another for cash or prizes

6

and establishing the practices and procedures governing the

7

conduct of the tournaments or contests. The number of

8

approved temporary tournament or contest table games shall

9

not be counted toward the maximum number of table games

10

authorized by the certificate holder's table game operation

11

certificate.

12

(9)  Designating an employee to approve or deny a

13

certificate holder's request to decrease the number of slot

14

machines in its licensed facility if the slot machine

15

licensee seeks to reduce the number of slot machines by less

16

than 2%. Designated approval for reduction of slot machines

17

shall not exceed 2% in total regardless of the number of

18

requests a slot machine licensee submits for approval.

19

§ 1303A.  Temporary table game regulations.

20

(a)  Promulgation.--In order to facilitate the prompt

21

implementation of this chapter, regulations promulgated by the

22

board shall be deemed temporary regulations which shall expire

23

not later than two years following the publication of the

24

temporary regulation. The board may promulgate temporary

25

regulations not subject to:

26

(1)  Sections 201, 202 and 203 of the act of July 31,

27

1968 (P.L.769, No.240), referred to as the Commonwealth

28

Documents Law.

29

(2)  The act of June 25, 1982 (P.L.633, No.181), known as

30

the Regulatory Review Act.

- 139 -

 


1

(3)  Sections 204(b) and 301(10) of the act of October

2

15, 1980 (P.L.950, No.164), known as the Commonwealth

3

Attorneys Act.

4

(b)  Expiration.--The board's authority to adopt temporary

5

regulations in subsection (a) shall expire two years after the

6

effective date of this section. Regulations adopted after this

7

period shall be promulgated as provided by law.

8

(c)  Temporary regulations.--The board shall begin publishing

9

temporary regulations governing table game rules, licensing of

10

manufacturers and suppliers and surveillance standards in the

11

Pennsylvania Bulletin no later than February 1, 2010.

12

§ 1304A.  Commonwealth resident employment goals.

13

(a)  Employment opportunities.--It is the goal of the General

14

Assembly that the board promote and ensure the availability of

15

employment opportunities for Commonwealth residents in

16

operations related to or associated with table game operations

17

as authorized in this chapter. The board shall work with each

18

certificate holder to ensure the representation of Commonwealth

19

residents employed by a certificate holder's table games

20

operation. It is the goal of the Commonwealth that Commonwealth

21

residents comprise at least 85% of each certificate holder's

22

employees related to or associated with table games by the end

23

of the third year following commencement of the conduct of table

24

games at each certificate holder's licensed facility.

25

(b)  Study.--The board shall conduct an annual study to

26

ascertain whether each certificate holder has taken effective

27

and meaningful action to enhance the number of Commonwealth

28

residents employed in positions related to or associated with

29

table games at licensed facilities. The first study shall be

30

completed one year following the issuance of the first table

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1

game operation certificate. Each annual study shall contain

2

recommendations which the board determines appropriate. The

3

study shall be submitted to the chairman and minority chairman

4

of the standing committees of the Senate and of the House of

5

Representatives with jurisdiction over this part.

6

SUBCHAPTER B

7

TABLE GAMES AUTHORIZED

8

Sec.

9

1311A.  Authorization to conduct table games.

10

1312A.  Petition requirements.

11

1313A.  Prohibitions.

12

1314A.  Table game authorization hearing process; public input

13

hearings.

14

1315A.  Standard for review of petitions.

15

1316A.  Timing initial table game authorizations.

16

§ 1311A.  Authorization to conduct table games.

17

(a)  Authorization to conduct.--Notwithstanding any other

18

provision of law to the contrary, the board may authorize a slot

19

machine licensee to conduct table games, the conduct of contests

20

or tournaments involving table games and the system of wagering

21

associated with the conduct of table games at the slot machine

22

licensee's licensed facility. Authorization to conduct table

23

games shall be contingent upon the slot machine licensee's

24

agreement to ensure the conduct of gaming in accordance with

25

this part and any other conditions established by the board.

26

Nothing in this part shall be construed to create a separate

27

license governing the conduct of table games by licensed

28

entities within this Commonwealth.

29

(b)  Number of authorized table games.--

30

(1)  Each Category 1 and Category 2 slot machine licensee

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1

awarded a table game operation certificate may be authorized

2

by the board to operate up to 200 table games at any one time

3

at the Category 1 or Category 2 licensed facility.

4

(2)  Each Category 3 slot machine licensee awarded a

5

table game operation certificate may be authorized by the

6

board to operate up to 75 table games at any one time at the

7

Category 3 licensed facility.

8

(c)  Additional authorization.--Notwithstanding subsection

9

(b), a slot machine licensee awarded a table game operation

10

certificate may, with board approval, exceed the total number of

11

table games authorized in the table game operation certificate

12

to conduct contests or tournaments at locations at the licensed

13

facility as determined pursuant to section 1321A (relating to

14

authorized locations for operation).

15

§ 1312A.  Petition requirements.

16

(a)  General rule.--A slot machine licensee may seek approval

17

to conduct table games by filing a petition with the board.

18

(b)  Petition contents.--A petition seeking authorization to

19

conduct table games shall include the following:

20

(1)  The name, business address and contact information

21

of the petitioner.

22

(2)  The name and business address, job title and a

23

photograph of each principal and key employee of the

24

petitioner who will be involved in the conduct of table games

25

and who is not currently licensed by the board.

26

(3)  An itemized list of the number and types of table

27

games for which authorization is being sought.

28

(4)  The estimated number of full-time and part-time

29

employment positions that will be created at the licensed

30

facility if table games are authorized and an updated hiring

- 142 -

 


1

plan pursuant to section 1510 (relating to labor hiring

2

preferences) which outlines the petitioner's plan to promote

3

the representation of diverse groups and Commonwealth

4

residents in the new employment positions.

5

(5)  A brief description of the economic benefits

6

expected to be realized by the Commonwealth, its

7

municipalities and its residents if table games are

8

authorized.

9

(6)  The details of any financing obtained or that will

10

be obtained to fund an expansion or modification of the

11

licensed facility to accommodate table games.

12

(7)  Information and documentation concerning financial

13

background and resources, as the board may require, to

14

establish by clear and convincing evidence the financial

15

stability, integrity and responsibility of the petitioner.

16

(8)  Information and documentation, as the board may

17

require, to establish by clear and convincing evidence that

18

the petitioner has sufficient business ability and experience

19

to create and maintain a successful table game operation. In

20

making this determination, the board may consider the results

21

of the petitioner's slot machine operation, including

22

financial information, employment figures and capital

23

investment.

24

(9)  Information and documentation, as the board may

25

require, to establish by clear and convincing evidence that

26

the petitioner has the financial ability to pay the

27

authorization fee under section 1361A (relating to table game

28

authorization fee).

29

(10)  Detailed site plans identifying the petitioner's

30

proposed table game area within the licensed facility or any

- 143 -

 


1

proposed temporary facility.

2

(11)  Other information as the board may require.

3

(c)  Confidentiality.--Information submitted to the board

4

under subsection (b)(6), (7), (9), (10) and (11) may be

5

considered confidential by the board if the information would be

6

confidential under section 1206(f) (relating to board minutes

7

and records).

8

§ 1313A.  Prohibitions.

9

(a)  Slot machine licensee.--No slot machine licensee that is

10

required as a condition of slot machine licensure to make annual

11

payments to a municipality or municipal authority for an

12

economic development project, including any project enumerated

13

in the act of July 25, 2007 (P.L.342, No.53), known as

14

Pennsylvania Gaming Economic Development and Tourism Fund

15

Capital Budget Itemization Act of 2007, may submit a petition

16

under section 1312A (relating to petition requirements) until a

17

written agreement governing the terms of the payments, including

18

the date on which the payments shall be made, the amount of each

19

annual payment and the duration of the annual payments, is

20

executed between the slot machine licensee and the municipality

21

or municipal authority.

22

(b)  Duties of board.--The board shall not accept or approve

23

a petition submitted by any slot machine licensee subject to

24

this section and prohibited by subsection (a) until such written

25

agreement is submitted by the slot machine licensee to the

26

board, which shall ensure the written agreement meets the

27

requirements of this section and all conditions relating to the

28

economic development project imposed by the board when awarding

29

the slot machine license to the licensee are satisfied and until

30

the municipality or municipal authority confirms to the board in

- 144 -

 


1

writing that the slot machine licensee has made the first

2

required payment under the written agreement.

3

(c)  Construction.--Nothing in this section shall be

4

construed to relieve a slot machine licensee of its legal

5

obligation to make any required annual payments referenced under

6

this section if the slot machine licensee elects not to petition

7

the board for authorization to conduct table games.

8

§ 1314A.  Table game authorization hearing process; public input

9

hearings.

10

(a)  General rule.--The board's consideration and resolution

11

of all petitions to conduct table games shall be conducted in

12

accordance with 2 Pa.C.S. (relating to administrative law and

13

procedure) or with procedures adopted by order of the board.

14

Notwithstanding the requirements of 2 Pa.C.S. §§ 504 (relating

15

to hearing and record) and 505 (relating to evidence and cross-

16

examination) as they relate to the conduct of oral hearings, the

17

board may adopt procedures to provide parties before it with a

18

documentary hearing, and the board may resolve disputed material

19

facts without conducting an oral hearing where constitutionally

20

permissible.

21

(b)  Public input hearing requirement.--

22

(1)  Prior to granting a petition for a slot machine

23

licensee to conduct table games under this chapter, the board

24

shall hold at least one public input hearing on the matter,

25

in the municipality where the petitioner's licensed facility

26

is located.

27

(2)  A list of all witnesses scheduled to testify at a

28

public input hearing shall be posted on the board's Internet

29

website at least seven days prior to the hearing. The list

30

shall be updated at least three days prior to the hearing.

- 145 -

 


1

Additional witnesses shall be posted on the board's Internet

2

website as they are added to the list.

3

§ 1315A.  Standard for review of petitions.

4

The board shall grant a petition and authorize the petitioner

5

to operate table games if the petitioner establishes, by clear

6

and convincing evidence, all of the following:

7

(1)  The petitioner's slot machine license is in good

8

standing with the board.

9

(2)  The petitioner conducting table games will have a

10

positive economic impact on the Commonwealth, its

11

municipalities and residents through increased revenues and

12

employment opportunities.

13

(3)  The petitioner possesses or has secured adequate

14

financing, if necessary, to:

15

(i)  Fund an expansion or modification of the

16

petitioner's licensed facility to accommodate table

17

games.

18

(ii)  Pay the authorization fee under section 1361A

19

(relating to table game authorization fee).

20

(4)  The petitioner has the financial stability,

21

integrity and responsibility to conduct table games.

22

(5)  The petitioner has sufficient business ability and

23

experience to create and maintain a successful table game

24

operation.

25

(6)  The petitioner's proposed internal and external

26

security and proposed surveillance measures within the area

27

of the licensed facility where the petitioner seeks to

28

conduct table games are adequate.

29

(7)  The petitioner agrees to maintain the same number of

30

slot machines in operation authorized by the board on October

<--

- 146 -

 


1

1, 2009, and agrees not to decrease the number of slot

2

machines in its licensed facility by more than 2% without

3

formal board approval.

4

(8)  If the petitioner is a Category 3 slot machine

5

licensee, the petitioner agrees to invest at least

6

$30,000,000 in capital improvements over a five-year period

7

at the licensed facility.

8

§ 1316A.  Timing initial table game authorizations.

9

The board shall approve or deny a petition filed under

10

section 1312A (relating to petition requirements) within 90 days

11

of the effective date of this chapter and no later than 60 days

12

after receipt of the filing.

13

SUBCHAPTER C

14

CONDUCT OF TABLE GAMES

15

Sec.

16

1321A.  Authorized locations for operation.

17

1322A.  Commencement of table game operations.

18

1323A.  Table game operation certificate.

19

1324A.  Condition of continued operation.

20

1325A.  Table game accounting controls and audits.

21

1326A.  Wagering policies.

22

1327A.  Key employees and occupation permits.

23

1328A.  Amendment of statement of conditions.

24

1329A.  Application of Clean Indoor Air Act.

25

1329.1A.  Application of Liquor Code.

26

§ 1321A.  Authorized locations for operation.

27

(a)  Restriction.--Except as provided under subsection (b), a

28

certificate holder shall only be permitted to operate table

29

games at the licensed facility.

30

(a.1)  Temporary facilities.--The board may permit a

- 147 -

 


1

certificate holder to conduct table games at a temporary

2

facility which is physically connected to, attached to or

3

adjacent to and on the same parcel of land as a permanent

4

facility for a period not to exceed 24 months.

5

(b)  Powers and duties of board.--Upon petition made by a

6

table game operation certificate holder, the board may determine

7

the suitability of a hotel for the conduct of table games. The

8

board may authorize the executive director to designate specific

9

areas of the hotel, including conference rooms, ballrooms or

10

other rooms, in which the certificate holder may conduct table

11

games for the purposes of temporary contests or tournaments. No

12

certificate holder may be approved to conduct table games in a

13

hotel unless the areas to be designated are equipped with

14

adequate security and surveillance equipment to ensure the

15

integrity of the conduct of a table game, contest or tournament.

16

The petition shall include the number of table games the

<--

17

certificate holder intends to operate during the temporary

18

contest or tournament. The certificate holder shall notify the

<--

19

board of the number of table games that the certificate holder

20

intends to operate during a temporary contest or tournament, and

21

the board shall designate an employee to approve or deny the

22

request. In granting authorization under this section, the board

23

shall be prohibited from:

24

(1)  Imposing any criteria or requirements regarding the

25

contents or structure of a hotel which are unrelated to the

26

conduct of table games.

27

(2)  Authorizing the placement or operation of slot

28

machines in a hotel.

29

(3)  Counting the number of temporary contest or

30

tournament table games toward the number of approved tables

- 148 -

 


1

in the table game operation certificate.

2

§ 1322A.  Commencement of table game operations.

3

A certificate holder may not operate or offer table games for

4

play at a licensed facility until:

5

(1)  The certificate holder is in compliance in all

6

respects with the requirements of this part.

7

(2)  The board has approved the certificate holder's

8

internal controls and audits protocols under section 1325A

9

(relating to table game accounting controls and audits).

10

(3)  The certificate holder's table game employees, where

11

applicable, are licensed, permitted or otherwise authorized

12

by the board to perform their respective duties.

13

(4)  The certificate holder is prepared in all respects

14

to offer table game play to the public at the licensed

15

facility.

16

(5)  The certificate holder has implemented necessary

17

internal and management controls and security arrangements

18

and surveillance systems for the conduct of table games.

19

(6)  The certificate holder has paid the authorization

20

fee in accordance with section 1361A (relating to table game

21

authorization fee).

22

(7)  The certificate holder has obtained authorization

<--

23

pursuant to an act of the General Assembly, following the

24

effective date of this section, and has compensated the

25

Commonwealth for no less than the $5,000,000 for the State

26

lands occupied by the licensed facility.

27

§ 1323A.  Table game operation certificate.

28

The following shall apply:

29

(1)  A table game operation certificate shall be in

30

effect unless suspended or revoked by the board or not

- 149 -

 


1

renewed by the certificate holder or by the board upon good

2

cause by the board consistent with the requirements of this

3

part.

4

(2)  The table game operation certificate shall include

5

an itemized list by type and number of the table games

6

approved by the board and permitted in the particular

7

licensed facility. The certificate holder may increase or

8

decrease the number of table games permitted at the licensed

9

facility, change the type of table games played at a

10

particular table or change the configuration of table games

11

upon notice to the board and approval by a designated

12

employee of the board. Unless approved by the board, the

13

total number of table games in operation at the licensed

14

facility may not exceed the number authorized in the table

15

games operation certificate.

16

(3)  Certificate holders shall be required to update the

17

information in their initial table games petition at times

18

prescribed by the board.

19

(4)  No additional authorization fee shall be imposed for

20

renewal of a table game operation certificate.

21

§ 1324A.  Condition of continued operation.

22

As a condition of continued operation, a certificate holder

23

shall agree to maintain all books, records and documents

24

pertaining to table games in a manner and location within this

25

Commonwealth as approved by the board. All books, records and

26

documents related to table games shall:

27

(1)  be segregated by separate accounts within the slot

28

machine licensee's operations books, records and documents,

29

except for any books, records or documents that are common to

30

both operations;

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1

(2)  be immediately available for inspection upon request

2

of the board, the bureau, the Pennsylvania State Police, the

3

Attorney General or agents thereof during all hours of

4

operation of the licensed facility in accordance with

5

regulations promulgated by the board; and

6

(3)  be maintained for a period as the board, by

7

regulation, may require.

8

§ 1325A.  Table game accounting controls and audits.

9

(a)  Approval.--Prior to the commencement of table game

10

operations, a certificate holder shall submit to the board for

11

approval all proposed site plans, internal control systems and

12

audit protocols for the certificate holder's table game

13

operations.

14

(b)  Minimum requirements.--A certificate holder's internal

15

controls and audit protocols shall:

16

(1)  Safeguard its assets and revenues, including the

17

recording of cash and evidences of indebtedness related to

18

table games.

19

(2)  Provide for reliable records, accounts and reports

20

of any financial event that occurs in the conduct of table

21

games, including reports to the board related to the table

22

games.

23

(3)  Provide for accurate and reliable financial records

24

related to table games.

25

(4)  Establish procedures for all the following:

26

(i)  The receipt, storage and disbursal of chips,

27

cash and cash equivalents used in table games.

28

(ii)  Check cashing.

29

(iii)  The redemption of chips, cash equivalents and

30

other representations of value used in table games and

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1

the payoff of jackpots.

2

(iv)  The recording of transactions pertaining to

3

table games.

4

(5)  Establish procedures for the collection and security

5

of moneys at the gaming tables.

6

(6)  Establish procedures for the transfer and recording

7

of chips between the gaming tables and the cashier's cage.

8

(7)  Establish procedures for the transfer of drop boxes

9

for table games from the gaming tables to the count room.

10

(8)  Establish procedures and security for the counting

11

and recording of table game revenue.

12

(9)  Establish procedures for the security, storage and

13

recording of cash, chips and cash equivalents utilized in

14

table games.

15

(10)  Establish procedures and security standards for the

16

handling and storage of table game devices.

17

(11)  Establish procedures and rules governing the

18

conduct of each table game and the responsibility of

19

employees related to table games.

20

(12)  Establish procedures for the collection and

21

recording of revenue from poker when it is a nonbanking game,

22

including the types of rake utilized and the methodology for

23

calculating the amount of permissible rake.

24

(13)  Ensure that any wagering permitted in a table game

25

is implemented only in accordance with the management's

26

general or specific authorization, as approved by the board.

27

(14)  Ensure the proper and timely accounting of gross

28

table game revenue and the calculation of gross table game 

29

revenue, fees and taxes based on the gross table game revenue

30

and maintain accountability for assets.

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1

(15)  Ensure that recorded accountability for assets is

2

compared with actual assets at reasonable intervals and that

3

appropriate action is taken with respect to any

4

discrepancies.

5

(16)  Ensure that all functions, duties and

6

responsibilities are appropriately segregated and performed

7

in accordance with sound financial practices by competent,

8

qualified employees.

9

(17)  Permit use of its licensed facility by the board,

10

the bureau and other persons authorized by the board to

11

facilitate their ability to perform regulatory and oversight

12

functions under this chapter.

13

(c)  Submission to board.--The submission required under

14

subsection (a) shall include a detailed description of the

15

certificate holder's administrative and accounting procedures

16

related to table games, including its written system of internal

17

controls. Each written system of internal controls shall

18

include:

19

(1)  An organizational chart depicting appropriate

20

functions and responsibilities of employees involved in both

21

the slot machine operations and table game operations.

22

(2)  A description of the duties and responsibilities of

23

each position shown on the organizational chart.

24

(3)  The record retention policy of the certificate

25

holder.

26

(4)  The procedure to be utilized to ensure that assets

27

are safeguarded, including mandatory count procedures.

28

(5)  A detailed narrative description of the

29

administrative and accounting procedures in place to ensure

30

compliance with the requirements of section 1326A (relating

- 153 -

 


1

to wagering policies).

2

(6)  A statement signed by the certificate holder's chief

3

financial officer or other competent person attesting that

4

the officer believes, in good faith, that the system

5

satisfies the requirements of this section.

6

(d)  Review.--Prior to authorizing a certificate holder to

7

conduct table games, the board shall review the system of

8

internal controls submitted under subsection (c) to determine

9

whether it conforms to the requirements of this part and whether

10

it provides adequate and effective controls for the conduct of

11

table games.

12

§ 1326A.  Wagering policies.

13

(a)  Acceptance of checks.--A certificate holder may accept a

14

check from a patron in exchange for cash or chips. The

15

certificate holder shall present each check for payment to the

16

financial institution upon which the check is drawn within ten

17

days of receipt by the certificate holder. No third party checks

18

shall be permitted.

19

(b)  Credit and other financial transactions permitted.-–A

20

certificate holder may make credit card advances and withdrawals

21

available to patrons at its licensed facility. All fees charged

22

for cash advances, check cashing, credit card withdrawals and

23

the conversion of cash equivalents shall be disclosed.

24

Notwithstanding section 1504 (relating to wagering on credit), a

25

certificate holder may extend credit to patrons for the purpose

26

of playing slot machines or table games in accordance with this

27

section.

28

(c)  Credit applications.-–Each application for credit

29

submitted by a patron to a certificate holder shall be

30

maintained in a credit file. The application shall include the

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1

patron's name, address, telephone number, comprehensive bank

2

account information, the requested credit limit, the patron's

3

approximate amount of current indebtedness, the amount and

4

source of income in support of the application, the patron's

5

signature on the application and a certification of truthfulness

6

which shall be subject to 18 Pa.C.S. § 4903 (relating to false

7

swearing). The certification holder shall notify each applicant

8

that, as a condition of receiving credit, the certificate holder

9

will verify identity and indebtedness information through a

10

credit bureau, casino credit bureau and, if appropriate, through

11

direct contact with other certificate holders.

12

(d)  Credit application verification.-–Prior to approving an

13

application for credit, a certificate holder shall verify:

14

(1)  The identity, creditworthiness and indebtedness

15

information on the application by conducting a comprehensive

16

review of the information submitted with the application and

17

any information regarding the patron's credit activity at

18

other licensed facilities which the certificate holder may

19

obtain through a casino credit bureau and, if appropriate,

20

through direct contact with other licensed facilities.

21

(2)  That the applicant's name is not included on an

22

exclusion list under section 1514 (relating to regulation

23

requiring exclusion of certain persons) or 1516 (relating to

24

list of persons self excluded from gaming activities) or a

25

voluntary credit suspension list under subsection (h).

26

(3)  The applicant's average bank balance through direct

27

contact with a casino credit bureau, credit agency or with

28

the applicant's bank.

29

(e)  Establishment of credit.-–Each applicant's credit limit

30

shall be approved by any two or more employees of the

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1

certificate holder holding the job positions of credit manager,

2

assistant credit manager, credit shift manager, credit executive

3

or a key employee in a direct reporting line above the manager

4

or credit manager. The approval shall be recorded in the

5

applicant's credit file and shall include the reasons and

6

information relied on for the approval of credit and

7

verification by the employees approving the applicant's credit

8

limit. Increases to an individual's credit limit may be approved

9

following a written request from the individual and

10

reverification of an individual's credit information.

11

(f)  Recordkeeping.-–Detailed information pertaining to all

12

transactions affecting an individual's outstanding indebtedness

13

to a certificate holder shall be recorded in chronological order

14

in the individual's credit file.

15

(g)  Suspension of credit.-–A certificate holder may reduce

16

an individual's credit limit or suspend credit to an individual

17

upon consideration of information affecting the individual's

18

creditworthiness or the individual's credit activities at the

19

licensed facility or another licensed facility. Any individual

20

may request a certificate holder to voluntarily suspend the

21

individual's credit. Each certificate holder shall inform the

22

board when an individual requests a voluntary suspension of

23

credit and shall provide the board with all information

24

necessary to maintain the voluntary credit suspension list under

25

subsection (h).

26

(h)  Voluntary credit suspension list.--The board shall

27

maintain a voluntary credit suspension list of all persons who

28

have requested voluntary suspension of credit privileges and

29

shall provide the list on a continuous basis to the credit

30

department of each certificate holder. An individual may request

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1

placement on the voluntary credit suspension list by submitting

2

to the board the individual's name, address and date of birth.

3

The individual does not need to provide a reason for the

4

request. Notwithstanding any other provision of law to the

5

contrary, the board's list of individuals who have had credit

6

privileges voluntarily suspended shall not be open to public

7

inspection, and neither the board nor the credit department of a

8

certificate holder shall divulge the names on this list to any

9

person or entity other than those provided for in this

10

subsection. To remove an individual's name from the list, the

11

individual shall submit a request to the board, which shall

12

remove the individual from the list and inform the credit

13

department of each certificate holder not later than three

14

business days after the submission board's receipt of the

<--

15

request.

16

(i)  Liability.--A certificate holder or employee thereof

17

shall not be liable to any individual on the voluntary credit

18

suspension list or to any other party in any judicial proceeding

19

for any harm, monetary or otherwise, which may arise as a result

20

of:

21

(1)  the failure of a certificate holder to restore

22

credit privileges to an individual on the voluntary credit

23

suspension list; or

24

(2)  otherwise permitting an individual on the voluntary

25

credit suspension list to engage in gaming activity in the

26

licensed facility while on the voluntary credit suspension

27

list.

28

(j)  Checks.--Notwithstanding the provisions of any law to

29

the contrary, checks cashed in conformity with the requirements

30

of this section or 13 Pa.C.S. Div. 3 (relating to negotiable

- 157 -

 


1

instruments) shall be valid instruments, enforceable at law in

2

the courts of this Commonwealth. Any check cashed, transferred,

3

conveyed, given or accepted in violation of this section shall

4

be invalid and unenforceable for the purposes of collection by a

5

certificate holder but shall be included in the calculation of

6

gross table game revenue.

7

(k)  Tax liability.--Credit extended pursuant to this section

8

may not be claimed as a deduction, credit or any other type of

9

reduction or offset against any tax imposed by this part or the

10

act of March 4, 1971 (P.L.6, No.2), known as the Tax Reform Code

11

of 1971.

12

§ 1327A.  Key employees and occupation permits.

13

Nothing in this part shall be construed to require any

14

individual who holds a key employee or gaming employee license

15

under Chapter 13 (relating to licensees) to obtain a separate

16

license or permit to be employed in a certificate holder's table

17

game operation authorized under this chapter.

18

§ 1328A.  Amendment of statement of conditions.

19

(a)  Amendment.--Upon granting a petition for a table game

20

operation certificate, the board shall amend the slot machine

21

licensee's statement of conditions governing the slot machine

22

license to include conditions pertaining to the requirements of

23

this part.

24

(b)  Sanctions.--A certificate holder that fails to abide by

25

this part as well as any condition contained in the licensee's

26

statement of conditions in the conduct of table games shall be

27

subject to board-imposed administrative sanctions or other

28

penalties authorized under this part.

29

§ 1329A.  Application of Clean Indoor Air Act.

30

If the board authorizes the conduct of table games in a

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1

designated area other than the gaming floor, as defined in

2

section 2 of the act of June 13, 2008 (P.L.182, No.27), known as

3

the Clean Indoor Air Act, the provisions of section 3(b)(11) of

4

the Clean Indoor Air Act shall apply to that area and may

<--

5

include table games.

6

§ 1329.1A.  Application of Liquor Code.

7

The provisions of section 493(24)(ii) of the act of April 12,

8

1951 (P.L.90, No.21), known as the Liquor Code, shall also apply

9

to table games.

10

SUBCHAPTER D

11

(RESERVED)

12

SUBCHAPTER E

13

TABLE GAME TESTING AND CERTIFICATION

14

Sec.

15

1341A.  Table game device testing and certification standards.

16

§ 1341A.  Table game device testing and certification standards.

17

(a)  Use of other state standards.--Until such time as the

18

board expands the independent testing and certification facility

19

established under section 1320(b) (relating to slot machine

20

testing and certification standards), the board may determine

21

whether the table game device testing and certification

22

standards of another jurisdiction within the United States in

23

which an applicant for a manufacturer license is licensed are

24

comprehensive and thorough and provide similar adequate

25

safeguards as those required by this part. If the board makes

26

that determination, it may permit a manufacturer licensed

27

pursuant to section 1317.1 (relating to manufacturer licenses)

28

to deploy table game devices it manufactures which have met the

29

table game device testing and certification standards in another

30

jurisdiction without undergoing the full testing and

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1

certification process by the board's independent testing and

2

certification facility.

3

(b)  Expansion of independent testing and certification

4

facility.--Within one year of the effective date of this

5

chapter, the board shall expand the independent testing and

6

certification facility created under section 1320(b) to include

7

the testing and certification of table game devices. Costs

8

associated with the expansion of the facility shall be assessed

9

on the appropriate manufacturer licensed to manufacture table

10

game devices under this part in accordance with a schedule

11

adopted by the board. The expanded facility shall be made

12

available to each table game device manufacturer and supplier as

13

determined by the board.

14

SUBCHAPTER F

15

(Reserved)

16

SUBCHAPTER G

17

TABLE GAME TAXES AND FEES

18

Sec.

19

1361A.  Table game authorization fee.

20

1362A.  Table game taxes and assessment.

21

§ 1363A.  Additional table game assessment.

<--

22

§ 1361A.  Table game authorization fee.

23

(a)  Imposition.--The board shall impose on each certificate

24

holder that is a Category 1 or Category 2 slot machine licensee

25

a one-time nonrefundable authorization fee in the amount of

26

$20,000,000 and on each certificate holder that is a Category 3

27

licensee a one-time nonrefundable authorization fee in the

28

amount of $7,500,000 for the privilege of conducting table

29

games.

30

(b)  Petition deadlines.--All eligible slot machine

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1

licensees, whether operational or not, must submit a petition

2

and pay the authorization fee in full by June 1, 2010. This

3

subsection shall not apply to a Category 1 or Category 3 license

4

issued under section 1307 (relating to number of slot machine

5

licenses) after June 1, 2010.

6

(c)  Payment of fee.--The fee imposed under subsection (a)

7

may be paid through an installment period established by the

8

board if the authorization fee is paid in full on or before June

9

1, 2010.

10

(d)  Failure to pay by deadline.--If a petitioner or

11

certificate holder fails to pay the authorization fee in full by

12

June 1, 2010, the board shall impose a $5,000,000 penalty and

13

may grant the petitioner or certificate holder up to a six-month

14

extension to pay any remaining authorization fee and the

15

penalty. The board may require the certificate holder to remit a

16

certain amount from the daily gross table game revenue to the

17

department until the fee and penalty are fully paid.

18

(e)  Revocation of certificate.--The board shall revoke the

19

table game operation certificate if the certificate holder fails

20

to pay the total authorization fee and the penalty prior to the

21

expiration of an extension period granted under subsection (d).

22

(f)  Petitions filed after deadline.--A petitioner filing a

23

petition after June 1, 2010, shall be required to pay an

24

additional authorization fee of $7,500,000. This subsection

25

shall not apply to a Category 1 or Category 3 slot machine

26

license issued after June 1, 2010.

27

(g)  Deposit of fees.–-Notwithstanding section 1208 (relating

28

to collection of fees and fines), all table game authorization

29

fees received by the board under subsection (a), (c) or (f) or

30

penalties received under subsection (d) and all table game

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1

manufacturer and supplier license fees or manufacturer and

2

supplier renewal fees or fees for licensees issued under Chapter

3

16 (relating to junkets) shall be deposited in the General Fund.

4

Upon receipt of the license fee by the General Fund, 10% of the 

<--

5

fee must be transferred within 30 days to the Department of

6

Military and Veteran Affairs. Such funds shall be used 50% for

7

operation of Scotland School for Veterans Children, and 50% for

8

operation of, maintenance of and improvements to veterans homes,

9

centers and schools.

10

§ 1362A.  Table game taxes and assessment.

11

(a)  Imposition.--Each certificate holder shall pay from its

12

daily gross table game revenue from the table games in operation

13

at its licensed facility on a form prescribed by the department

14

a tax of 34% 37% to be deposited into the General Fund and

<--

15

distributed as follows:

16

(1)  Thirty-four percent shall remain in the General

17

Fund.

18

(2)  One and one-half percent shall be distributed by the

19

department to the county hosting the licensed facility.

20

(3)  One and one-half percent shall be distributed by the

21

department to the municipality hosting the licensed facility.

22

(b)  Deposits and distributions.-–

23

(1)  The tax imposed under subsection (a) and any

24

interest accrued thereon shall be payable to the department

25

on a weekly basis and shall be based upon gross table game

26

revenue derived during the previous week. The department

<--

27

shall distribute moneys to the counties and municipalities

28

within a week of their receipt.

29

(2)  All funds owed to the Commonwealth, county and

<--

30

municipality under this section shall be held in trust for

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1

the Commonwealth, county and municipality by the certificate

<--

2

holder until the funds are paid or transferred and

3

distributed by the department. Unless otherwise agreed to by

4

the board, a certificate holder shall establish a separate

5

bank account to maintain table game revenue until such time

6

as the funds are paid or transferred under this section.

7

(b.1)  Disposition in certain third class counties.--

<--

8

(1)  The tax imposed by subsection (a)(2) in a county of

9

the third class with a thoroughbred racetrack shall be

10

deposited into a restricted account established in the

11

Pennsylvania Commission on Crime and Delinquency to be used

12

exclusively by the county commissioners of the third class

13

county where the facility is located for a Violent Crime Task

14

Force composed of members of county and municipal law

15

enforcement agencies to reduce gang violence, gun trafficking

16

and violence and drug-related crimes. The commissioners shall

17

appoint an advisory committee to be chaired by the district

18

attorney and composed of chiefs and directors of county and

19

municipal law enforcement agencies. The advisory committee

20

shall make recommendations to the county commissioners for

21

the priorities and expenditures of the task force. The

22

district attorney shall direct and coordinate the operations

23

and personnel of the task force.

24

(2)  The tax imposed by subsection (a)(3) in a county of

25

the third class with a thoroughbred racetrack shall be

26

distributed to the host municipality, subject, however, to

27

the budgetary limitations in this paragraph. If the licensed

28

facility and associated land are located in more than one

29

second class township, $120,000 annually shall be paid to

30

each township by the licensed gaming entity operating a

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1

licensed facility and associated land located in those

2

townships, subject, however, to the budgetary limitation in

3

this paragraph. The amount allocated to the designated

4

townships in this paragraph shall not exceed 50% of their

5

total budget for fiscal year 2009-2010, adjusted for

6

inflation in subsequent years by an amount not to exceed an

7

annual cost-of-living adjustment calculated by applying the

8

percentage change in the Consumer Price Index immediately

9

prior to the date the adjustment is due to take effect. Any

10

remaining funds shall be deposited in the restricted account

11

established by the Pennsylvania Commission on Crime and

12

Delinquency in this subsection and shall be used for the

13

purposes of implementing this subsection.

14

(3)  This subsection shall only apply to those counties

15

in which a licensed facility and associated lands are located

16

in two counties.

17

(4)  For the purposes of this subsection, the term

18

"associated land" shall mean land that is owned by and

19

adjacent to a licensed facility and other areas owned by the

20

licensed facility, including racetracks, grazing fields or

21

any other adjoining real property.

22

(c)  Deposits for property tax relief.--If, on the last day

23

of a fiscal year the balance of the Budget Stabilization Reserve

24

Fund established pursuant to section 1701-A of the act of April

25

9, 1929 (P.L.343, No.176), known as The Fiscal Code, exceeds

26

$750,000,000, the Secretary of the Budget shall certify the

27

amount in the fund and the deposits made into the General Fund

28

pursuant to subsection (a) (a)(1) shall cease and thereafter be

<--

29

deposited into the Property Tax Relief Fund established pursuant

30

to 4 Pa.C.S. § 1409 (relating to Property Tax Relief Fund).

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1

§ 1363A.  Additional table game assessment.

<--

2

(a)  Additional assessment.--An assessment in an amount equal

3

to 1% of the daily gross table game revenue from each

4

certificate holder shall be paid by each certificate holder,

5

deposited in the State Gaming Fund and quarterly distributed to

6

the county hosting the certificate holder in accordance with

7

section 1403(c)(2), except when the certificate holder is

8

located in a county of the first class in which case the amount

9

shall be deposited in an escrow account established by an

10

advisory committee organized and overseen by the board and

11

distributed pursuant to subsection (b).

12

(b)  Distributions from first class county escrow account.--

13

The advisory committee shall adopt and file with the board

14

procedures for distributions from an escrow account established

15

for a first class county under subsection (a). All funds in an

16

escrow account shall be distributed only to nonprofit

17

organizations, and no funds may be distributed out of the county

18

of the first class. No less than 70% of funds in the escrow

19

account shall be distributed to nonprofit organizations for the

20

benefit of the immediate vicinity of the licensed facility. The

21

advisory committee shall submit a biannual report to the board

22

on the distribution of funds from the escrow account.

23

(c)  Advisory committee.--An advisory committee for an escrow

24

account established for a first class county under subsection

25

(a) shall be comprised of the following members:

26

(1)  Two designees of the State Senator in whose district

27

the licensed facility is located.

28

(2)  Two designees of the State Representative in whose

29

district the licensed facility is located.

30

(3)  One designee of the municipal government.

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1

(4)  One designee of the municipal council.

2

(5)  One designee of the licensed facility.

3

Section 11.2.  Sections 1401(b), 1402(a), 1402.1, 1403(b),

4

(c)(2)(i)(D) and (E) and (ii)(D), (iv) and (3)(v), 1405 and

<--

5

1406(a) and (e) of Title 4 are amended to read:

<--

6

§ 1401.  Slot machine licensee deposits.

7

* * *

8

(b)  Initial deposit of funds.--Not later than two business

9

days prior to the commencement of slot machine operations by a

10

slot machine licensee, the slot machine licensee shall deposit

11

and maintain the [sum of $5,000,000] following sums in its

12

account to guarantee the payment of funds to the Commonwealth

13

under this part and as security for its obligations under

14

section 1405 (relating to Pennsylvania Race Horse Development

15

Fund)[.]:

16

(1)  For a Category 1 or Category 2 slot machine

17

licensee, $5,000,000.

18

(2)  For a Category 3 slot machine licensee, $1,000,000.

19

No additional deposit shall be required from a slot machine

20

licensee if a slot machine licensee is granted a certificate

21

under Chapter 13A (relating to table games).

22

* * *

23

§ 1402.  Gross terminal revenue deductions.

24

(a)  Deductions.--After determining the appropriate

25

assessments for each slot machine licensee, the department shall

26

determine costs, expenses or payments from each account

27

established under section 1401 (relating to slot machine

28

licensee deposits). The following costs and expenses shall be

29

transferred to the appropriate agency upon appropriation by the

30

General Assembly:

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1

(1)  The costs and expenses to be incurred by the

2

department in administering this part at each slot machine

3

licensee's licensed facility based upon a budget submitted by

4

the department [to and approved by the board].

5

(2)  The other costs and expenses to be incurred by the

6

department in administering this part based upon a budget

7

submitted by the department [to and approved by the board].

8

(3)  Sums necessary to repay any loans made by the

9

General Fund to the department in connection with carrying

10

out its responsibilities under this part, including the costs

11

of the initial acquisition of the central control computer

12

and any accessories or associated equipment.

13

(4)  The costs and expenses to be incurred by the

14

Pennsylvania State Police and the Office of Attorney General

15

and not otherwise reimbursed under this part in carrying out

16

their respective responsibilities under this part based upon

17

a budget submitted by the Pennsylvania State Police and the

18

Attorney General [to and approved by the board].

19

(5)  Sums necessary to repay any loans made by the

20

General Fund to the Pennsylvania State Police in connection

21

with carrying out its responsibilities under this part.

22

(6)  The costs and expenses to be incurred by the board

23

in carrying out its responsibilities under this part based

24

upon a budget approved by the board.

25

(7)  Sums necessary to repay any loans made by the

26

General Fund to the board in connection with carrying out its

27

responsibilities under this part.

28

(8)  The salaries, wages and all necessary expenses

29

incurred by the Department of the Auditor General and not

30

otherwise reimbursed under this part in conducting audits as

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1

provided by law of the board or any fund created by this part

2

based upon the budget submitted by the Department of the

3

Auditor General pursuant to section 1402.1 (relating to

4

itemized budget reporting).

5

* * *

6

§ 1402.1.  Itemized budget reporting.

7

The board, department, Pennsylvania State Police [and], the

8

Attorney General and the Department of the Auditor General shall 

9

prepare and annually submit to the chairman of the

10

Appropriations Committee of the Senate and the chairman of the

11

Appropriations Committee of the House of Representatives an

12

itemized budget consisting of amounts to be appropriated out of

13

the accounts established under section 1401 (relating to slot

14

machine licensee deposits) necessary to administer this part or

15

required under section 1402(a)(8) (relating to gross terminal

16

revenue deductions).

17

§ 1403.  Establishment of State Gaming Fund and net slot machine

18

revenue distribution.

19

* * *

20

(b)  Slot machine tax.--The department shall determine and

21

each slot machine licensee shall pay a daily tax of 34% from its

22

daily gross terminal revenue from the slot machines in operation

23

at its facility and a local share assessment as provided in

24

subsection (c) into the fund. All funds owed to the Commonwealth

25

or a municipality under this section shall be held in trust by

26

the licensed gaming entity for the Commonwealth and the

27

municipality until the funds are paid or transferred and

28

distributed. Unless otherwise agreed to by the [Gaming Board]

29

board, a licensed gaming entity shall establish a separate bank

30

account to maintain [gaming proceeds] slot machine revenue until

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1

such time as [they] the funds are paid or transferred under this

2

section.

3

(c)  Transfers and distributions.--The department shall:

4

* * *

5

(2)  From the local share assessment established in

6

subsection (b), make quarterly distributions among the

7

counties hosting a licensed facility in accordance with the

8

following schedule:

9

(i)  If the licensed facility is a Category 1

10

licensed facility that is located at a harness racetrack

11

and the county, including a home rule county, in which

12

the licensed facility is located is:

13

* * *

14

(D)  (I)  A county of the third class:  Except as

15

provided in subclause (II), 2% of the gross terminal

16

revenue from each such licensed facility shall be

17

deposited into a restricted account established in

18

the Department of Community and Economic Development

19

to be used exclusively for grants for health, safety

20

and economic development projects to municipalities

21

within the county where the licensed facility is

22

located. [Municipalities that are contiguous to the

23

municipality hosting such licensed facility shall be

24

given priority by the Department of Community and

25

Economic Development in the award of such grants.] If

26

the licensed facility is located in a first class

27

township located in a county where a third class city

28

is operating under an Optional Plan B form of

29

government pursuant to the former act of April 13,

30

1972 (P.L.184, No.62), known as the Home Rule Charter

- 169 -

 


1

and Optional Plans Law, the department shall allocate

2

funds available for grants to municipalities as

3

follows: 40% shall be awarded to cities located in

4

the county on a pro rata basis utilizing the most

5

recent United States Census bureau population figures

6

available; 35% shall be awarded to municipalities

7

contiguous to the host municipality; and 25% shall be

8

available for awards to noncontiguous municipalities

9

in the county, on a competitive basis. Grants to

10

municipalities within the county where the licensed

11

facility is located may be awarded to groups of

12

municipalities within the county to fund regional

13

projects.

14

(II)  If a licensed facility is located in

15

one of two counties of the third class where a

16

city of the third class is located in both

17

counties of the third class, the county in which

18

the licensed facility is located shall receive

19

1.2% of the gross terminal revenue to be

20

distributed as follows:  20% to the host city,

21

30% to the host county and 50% to the host county

22

for the purpose of making municipal grants within

23

the county, with priority given to municipalities

24

contiguous to the host city. The county of the

25

third class, which includes a city of the third

26

class that is located in two counties of the

27

third class and is not the host county for the

28

licensed facility, shall receive .8% of the gross

29

terminal revenue to be distributed as follows:

30

60% to a nonhost city of the third class located

- 170 -

 


1

solely in the nonhost county in which the host

2

city of the third class is also located or 60% to

3

the nonhost city of the third class located both

4

in the host and nonhost counties of the third

5

class, 35% to the nonhost county and 5% to the

6

nonhost county for the purpose of making

7

municipal grants within the county.

8

(E)  A county of the fourth class:  2% of the

9

gross terminal revenue from each such licensed

10

facility shall be distributed as follows:

11

(I)  The department shall make quarterly

12

distributions directly to each municipality

13

within the county, except the host municipality,

14

by using a formula equaling the sum of $25,000

15

plus $10 per resident of the municipality using

16

the most recent population figures provided by

17

the Department of Community and Economic

18

Development, provided, however, that the amount

19

so distributed to any municipality shall not

20

exceed 50% of its total budget for fiscal year

21

2009, adjusted for inflation in subsequent fiscal

22

years by an amount not to exceed an annual cost-

23

of-living adjustment calculated by applying any

24

upward percentage change in the Consumer Price

25

Index immediately prior to the date the

26

adjustment is due to take effect. Distributions

27

to a municipality in accordance with this

28

subclause shall be deposited into a special fund

29

which shall be established by the municipality.

30

The governing body of the municipality shall have

- 171 -

 


1

the right to draw upon the special fund provided

2

that the municipality identifies the fund as the

3

source of the expenditure. Each municipality

4

shall annually submit a report to the Department

5

of Community and Economic Development detailing

6

the amount and purpose of each expenditure made

7

from the special account during the prior fiscal

8

year.

9

(II)  Any funds not distributed under

10

subclause (I) shall be deposited into a

11

restricted account established in the Department

12

of Community and Economic Development to be used

13

exclusively for grants to the county, to economic

14

development authorities or redevelopment

15

authorities within the county for grants for

16

economic development projects, infrastructure

17

projects, job training, community improvement

18

projects, other projects in the public interest

19

and reasonable administrative costs. However, the

20

administrative costs shall not exceed 4% of the

21

gross terminal revenue received by the county of

22

the fourth class annually from the licensed

23

facility. Notwithstanding the provisions of the

24

act of February 9, 1999 (P.L.1, No.1), known as

25

the Capital Facilities Debt Enabling Act, grants

26

made under this clause may be utilized as local

27

matching funds for other grants or loans from the

28

Commonwealth.

29

* * *

30

(ii)  If the licensed facility is a Category 1

- 172 -

 


1

licensed facility and is located at a thoroughbred

2

racetrack and the county in which the licensed facility

3

is located is:

4

* * *

5

(D)  A county of the third class:  1% of the

6

gross terminal revenue to the county hosting the

7

licensed facility from each such licensed facility.

8

An additional 1% of the gross terminal revenue to the

9

county hosting the licensed facility from each such

10

licensed facility for the purpose of municipal grants

11

within the county in which the licensee is located.

12

Where a licensed facility is located in a county of

13

the third class and owns land which is located in a

14

county of the fifth class that is owned by and

15

adjacent to the licensed facility and other areas

16

owned by the licensed facility, including racetracks,

17

grazing fields or any other adjoining real property,

18

the county of the fifth class shall receive a portion

19

of the gross terminal revenue distributed under this

20

clause in accordance with subparagraph (vi) as if

21

such land were part of the licensed facility.

22

* * *

23

(iv)  If the facility is a Category 3 licensed 

<--

24

facility, 2% of the gross terminal revenue from each such

25

licensed facility shall be deposited into a restricted

26

account established in [the Department of Community and

27

Economic Development] the Commonwealth Financing

28

Authority to be used exclusively for grants [to the

29

county, to economic development authorities or

30

redevelopment authorities within the county for grants

- 173 -

 


1

for economic development projects and community

2

improvement projects] or guarantees for projects in the

3

host county that qualify under 64 Pa.C.S. §§ 1551

4

(relating to Business And Our Sites Program), 1556

5

(relating to Tax Increment Financing Guarantee Program)

6

and 1558 (relating to Water Supply and Waste Water

7

Infrastructure Program).

8

* * *

9

(3)  From the local share assessment established in

10

subsection (b), make quarterly distributions among the

11

municipalities, including home rule municipalities, hosting a

12

licensed facility in accordance with the following schedule:

13

* * *

14

(v)  To a township of the second class hosting a

15

licensed facility, other than a Category 3 licensed

16

facility, 2% of the gross terminal revenue or $10,000,000

17

annually, whichever is greater, shall be paid by each

18

licensed gaming entity operating a licensed facility

19

located in the township, subject, however, to the

20

budgetary limitation in this subparagraph. The amount

21

allocated to the designated municipalities shall not

22

exceed 50% of their total budget for fiscal year

23

2003-2004, adjusted for inflation in subsequent years by

24

an amount not to exceed an annual cost-of-living

25

adjustment calculated by applying the percentage change

26

in the Consumer Price Index immediately prior to the date

27

the adjustment is due to take effect. Any remaining money

28

shall be collected by the department from each licensed

29

gaming entity and distributed in accordance with

30

paragraph (2) based upon the classification of county

- 174 -

 


1

where the licensed facility is located. Where the

2

licensed facility is other than a Category 3 and is

3

located in more than one second class township, the

4

county commissioners of the county of the third class in

5

which the facility is located shall appoint an advisory

6

committee for the purpose of advising the county as to

7

the need for municipal grants for health, safety,

8

transportation and other projects in the public interest

9

to be comprised of two individuals from the host

10

municipality, two from contiguous municipalities within

11

the county of the third class and one from the host

12

county. Where the licensed facility is other than a

13

Category 3 and is located in a county of the third class

14

and owns land which is located in a township of the

15

second class that is located in a county of the fifth

16

class that is owned by and adjacent to the licensed

17

facility and other areas owned by the licensed facility,

18

including racetracks, grazing fields or any other

19

adjoining real property, the township of the second class

20

in the county of the fifth class shall receive a portion

21

of the gross terminal revenue distributed under this

22

subparagraph in accordance with subparagraph (x) as if

23

such land were part of the licensed facility. A county

24

other than a county of the third class in which the

25

licensed facility is located is not required to appoint

26

an advisory committee and may use funds received under

27

this subparagraph for purposes other than municipal

28

grants. In the event that the revenues generated by the

29

2% do not meet the $10,000,000 minimum specified in this

30

subparagraph, the department shall collect the remainder

- 175 -

 


1

of the minimum amount of $10,000,000 from each licensed

2

gaming entity operating a licensed facility in the

3

township, pay any balance due to the township and

4

transfer any remainder in accordance with paragraph (2).

5

* * *

6

§ 1405.  Pennsylvania Race Horse Development Fund.

7

(a)  Fund established.--There is hereby established a

8

Pennsylvania Race Horse Development Fund within the State

9

Treasury.

10

(b)  Pennsylvania race horse improvement assessment.--[Each] 

<--

11

Except as provided in subsection (b.1), each active and 

<--

12

operating licensed gaming entity shall pay a daily assessment to

13

the Pennsylvania Race Horse Development Fund [as determined by

14

the department. Subject to the daily assessment cap established

15

under subsection (c), the licensed gaming entity's assessment

16

shall be a percentage of each licensed gaming entity's gross

17

terminal revenue, equal to an amount calculated as "A"

18

multiplied by "B", with "A" being] equal to 10% of each licensed

19

gaming entity's gross terminal revenue for that day [divided by

20

the total gross terminal revenue for that day from all licensed

21

gaming entities, and "B" being equal to 18% of that day's gross

22

terminal revenue for all active and operating Category 1

23

licensees conducting live racing].

24

(b.1)  Daily assessment.--For fiscal years 2009-2010 through

<--

25

2012-2013, each active and operating licensed gaming entity

26

shall pay a daily assessment to the Pennsylvania Race Horse

27

Development Fund equal to 12% of each licensed gaming entity's

28

gross terminal revenue for that day.

29

[(c)  Daily assessment cap.--If the resulting daily

30

assessment for a licensed gaming entity exceeds 12% of that

- 176 -

 


1

licensed gaming entity's gross terminal revenue for the day, the

2

licensed gaming entity shall pay a daily assessment of 12% of

3

its gross terminal revenue for that day.]

4

(d)  Distributions.--In accordance with section 1406

5

(relating to distributions from Pennsylvania Race Horse

6

Development Fund), the department shall make distributions from

7

the Pennsylvania Race Horse Development Fund to each of the

8

active and operating Category 1 licensees conducting live

9

racing.

10

(e)  Report.--Category 1 licensees shall report annually to

<--

11

the board and to the respective racing commission as to how the

12

introduction and expansion of enhanced gaming and distributions

13

from the fund have fulfilled the intent of this part to enhance

14

live racing and breeding in this Commonwealth. Additionally, the

15

licensees shall be required to document plans to promote live

16

handle and daily attendance at the racetrack in the subsequent

17

year.

18

§ 1406.  Distributions from Pennsylvania Race Horse Development

19

Fund.

20

(a)  Distributions.--Funds from the Pennsylvania Race Horse

21

Development Fund shall be distributed to each active and

22

operating Category 1 licensee conducting live racing [in the

23

following manner] as follows:

24

(1)  [An amount equal to 18% of the daily gross terminal

25

revenue of each Category 1 licensee shall be distributed to

26

each active and operating Category 1 licensee conducting live

27

racing unless the daily assessments are affected by the daily

28

assessment cap provided for in section 1405(c) (relating to

29

Pennsylvania Race Horse Development Fund). In cases in which

30

the daily assessment cap affects daily assessments, the] The 

<--

- 177 -

 


1

distribution to each active and operating Category 1 licensee

2

conducting live racing for that day shall be a percentage of

3

the total daily assessments paid into the Pennsylvania Race

4

Horse Development Fund for that day equal to the gross

5

terminal revenue of each active and operating Category 1

6

licensee conducting live racing for that day divided by the

7

total gross terminal revenue of all active and operating

8

Category 1 licensees conducting live racing for that day.

9

[The] Except as provided in paragraph (2), the distributions

<--

10

to licensed racing entities from the Pennsylvania Race Horse

11

Development Fund shall be allocated as follows:

12

[(i)  Eighty percent] (i)  (A)  From licensees that

<--

13

operate at thoroughbred tracks, 80% shall be deposited

14

weekly into a separate, interest-bearing purse account to

15

be established by and for the benefit of the horsemen.

16

The earned interest on the account shall be credited to

17

the purse account. Licensees shall combine these funds

18

with revenues from existing purse agreements to fund

19

purses for live races consistent with those agreements

20

with the advice and consent of the horsemen.

21

(B)  From licensees that operate at standardbred

<--

22

tracks, 64% shall be deposited weekly into a

23

separate, interest-bearing purse account to be

24

established by and for the benefit of the horsemen.

25

The earned interest on the account shall be credited

26

to the purse account. Licensees shall combine these

27

funds with revenues from existing purse agreements to

28

fund purses for live races consistent with those

29

agreements with the advice and consent of the

30

horsemen. A minimum of one-sixth of the amount of

- 178 -

 


1

those purses shall be used for live races limited to

2

harness horses that are regularly stabled in this

3

Commonwealth, are greater than three years of age and

4

were sired by a standardbred stallion regularly

5

standing in this Commonwealth.

6

(C)  From licensees that operate at standardbred

7

tracks, 16% shall be deposited on a monthly basis

8

into the Pennsylvania Sire Stakes Fund as defined in

9

section 224 of the Race Horse Industry Reform Act.

10

(ii)  For thoroughbred tracks, 16% shall be deposited

11

on a monthly basis into the Pennsylvania Breeding Fund as

12

defined in section 223 of the Race Horse Industry Reform

13

Act. For standardbred tracks, 8% shall be deposited on a

14

monthly basis in the Pennsylvania Sire Stakes Fund as

15

defined in section 224 of the Race Horse Industry Reform

16

Act, and 8% shall be deposited on a monthly basis into a

17

restricted account in the State Racing Fund to be known

18

as the Pennsylvania Standardbred Breeders Development

19

Fund. The State Harness Racing Commission shall, in

20

consultation with the Secretary of Agriculture by rule or

21

by regulation, adopt a standardbred breeders program that

22

will include the administration of Pennsylvania Stallion

23

Award, Pennsylvania Bred Award and a Pennsylvania Sired

24

and Bred Award.

25

(iii)  Four percent shall be used to fund health and

26

pension benefits for the members of the horsemen's

27

organizations representing the owners and trainers at the

28

racetrack at which the licensed racing entity operates

29

for the benefit of the organization's members, their

30

families, employees and others in accordance with the

- 179 -

 


1

rules and eligibility requirements of the organization,

2

as approved by the State Horse Racing Commission or the

3

State Harness Racing Commission. This amount shall be

4

deposited within five business days of the end of each

5

month into a separate account to be established by each

6

respective horsemen's organization at a banking

7

institution of its choice. Of this amount, $250,000 shall

8

be paid annually by the horsemen's organization to the

9

thoroughbred jockeys or standardbred drivers organization

10

at the racetrack at which the licensed racing entity

11

operates for health insurance, life insurance or other

12

benefits to active and disabled thoroughbred jockeys or

13

standardbred drivers in accordance with the rules and

14

eligibility requirements of that organization.

15

(2)  [(Reserved).] For fiscal years 2009-2010 through

16

2012-2013, distributions to licensed racing entities from the

<--

17

Pennsylvania Race Horse Development Fund shall be allocated

18

as follows:

19

(i)  Seventeen percent of the annual revenue

<--

20

deposited into the Pennsylvania Race Horse Development

21

Fund shall be transferred to the General Fund. The

22

remaining amount will be distributed as follows:

23

(A)  Either 4%, or $11,000,000, whichever is

24

greater, shall be used to fund health and pension

25

benefits for the members of the horsemen's

26

organizations representing the owners and trainers at

27

the racetrack at which the licensed racing entity

28

operates for the benefit of the organization's

29

members, their families, employees and others in

30

accordance with the rules and eligibility

- 180 -

 


1

requirements of the organization, as approved by the

2

State Horse Racing Commission or the State Harness

3

Racing Commission. This amount shall be deposited

4

within five business days of the end of each month

5

into a separate account to be established by each

6

respective horsemen's organization at a banking

7

institution of its choice. Of this amount, a minimum

8

of $250,000 shall be paid annually by the horsemen's

9

organization to the thoroughbred jockeys or

10

standardbred drivers organization at the racetrack at

11

which the licensed racing entity operates for health

12

insurance, life insurance or other benefits to active

13

and disabled thoroughbred jockeys or standardbred

14

drivers in accordance with the rules and eligibility

15

requirements of that organization.

16

(B)  The amount remaining after application of

17

clause (A) shall be distributed on a pro rata basis

18

as follows:

19

(I)  Seventy-eight percent of the remaining

20

amount shall be deposited weekly into a separate,

21

interest-bearing purse account to be established

22

by and for the benefit of the horsemen. The

23

earned interest on the account shall be credited

24

to the purse account. Licensees shall combine

25

these funds with revenues from existing purse

26

agreements to fund purses for live races

27

consistent with those agreements with the advice

28

and consent of the horsemen. The State Horse

29

Racing Commission and the State Harness Racing

30

Commission, in consultation with the Secretary of

- 181 -

 


1

Agriculture, shall adopt rules and regulations

2

relating to the conditions of live races, to

3

include races restricting entry to the

4

Pennsylvania-sired or Pennsylvania-bred horse.

5

(II)  For thoroughbred tracks, the remaining

6

17% shall be deposited on a monthly basis into

7

the Pennsylvania Breeding Fund as defined in

8

section 223 of the act of December 17, 1981

9

(P.L.435, No.135), known as the Race Horse

10

Industry Reform Act. For standardbred tracks,

11

one-half of that amount shall be deposited on a

12

monthly basis in the Pennsylvania Sire Stakes

13

Fund as defined in section 224 of the Race Horse

14

Industry Reform Act, and the other half shall be

15

deposited on a monthly basis into a restricted

16

account in the State Racing Fund to be known as

17

the Pennsylvania Standardbred Breeders

18

Development Fund. The State Harness Racing

19

Commission shall, in consultation with the

20

Secretary of Agriculture by rule or by

21

regulation, adopt a standardbred breeders program

22

that will include the administration of

23

Pennsylvania Stallion Award, Pennsylvania Bred

24

Award and a Pennsylvania Sired and Bred Award.

25

(III)  Five percent shall be deposited weekly

26

into the State Racing Fund as defined in section

27

222 of the Race Horse Industry Reform Act.

28

(ii)  Category 1 licensees shall report annually to

29

the board and to the respective racing commission as to

30

how the introduction and expansion of enhanced gaming has

- 182 -

 


1

fulfilled the intent of this title to enhance live racing

2

and breeding in this Commonwealth. Additionally, the

3

licensees shall be required to document plans to promote

4

live handle and daily attendance at the racetrack in the

5

subsequent year.

6

(i)  Each week, 17% of the money in the Pennsylvania

<--

7

Race Horse Development Fund shall be transferred to the

8

General Fund.

9

(ii)  Each week, 83% of the money in the Pennsylvania

10

Race Horse Development Fund shall be distributed to each

11

active and operating Category 1 licensee conducting live

12

racing in accordance with the following formula:

13

(A)  Divide:

14

(I)  the total daily assessments paid, by

15

each active and operating Category 1 licensee

16

conducting live racing, into the Pennsylvania

17

Race Horse Development Fund for that week; by

18

(II)  the total daily assessments paid, by

19

all active and operating Category 1 licensees

20

conducting live racing, into the Pennsylvania

21

Race Horse Development Fund for that week.

22

(B)  Multiply the quotient under clause (A) by

23

the amount to be distributed under this subparagraph.

24

(iii)  The distribution under subparagraph (ii) shall

25

be allocated as follows:

26

(A)  The greater of 4% of the amount to be

27

distributed under subparagraph (ii) or $220,000 shall

28

be used to fund health and pension benefits for the

29

members of the horsemen's organizations representing

30

the owners and trainers at the racetrack at which the

- 183 -

 


1

licensed racing entity operates for the benefit of

2

the organization's members, their families, employees

3

and others in accordance with the rules and

4

eligibility requirements of the organization, as

5

approved by the State Horse Racing Commission or the

6

State Harness Racing Commission. This amount shall be

7

deposited within five business days of the end of

8

each week into a separate account to be established

9

by each respective horsemen's organization at a

10

banking institution of its choice. Of this amount, a

11

minimum of $250,000 shall be paid annually by the

12

horsemen's organization to the thoroughbred jockeys

13

or standardbred drivers organization at the racetrack

14

at which the licensed racing entity operates for

15

health insurance, life insurance or other benefits to

16

active and disabled thoroughbred jockeys or

17

standardbred drivers in accordance with the rules and

18

eligibility requirements of that organization.

19

(B)  Of the money remaining to be distributed

20

under subparagraph (ii) after application of clause

21

(A), the following disbursements shall be made:

22

(I)  For licensees that operate at

23

thoroughbred tracks, eighty-three and one-third

24

percent of the money to be distributed under this

25

clause shall be deposited on a weekly basis into

26

a separate, interest-bearing purse account to be

27

established by and for the benefit of the

28

horsemen. The earned interest on the account

29

shall be credited to the purse account. Licensees

30

shall combine these funds with revenues from

- 184 -

 


1

existing purse agreements to fund purses for live

2

races consistent with those agreements with the

3

advice and consent of the horsemen. For licensees

4

that operate at standardbred tracks, 67 1/3%

5

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. A minimum of one-

14

sixth of the amount of those purses shall be used

15

for live races limited to harness horses that are

16

regularly stabled in this Commonwealth, are

17

greater than three years of age and were sired by

18

a standardbred stallion regularly standing in

19

this Commonwealth. From licensees that operate at

20

standardbred tracks, 16% shall be deposited on a

21

monthly basis into the Pennsylvania Sire Stakes

22

Fund as defined in section 224 of the Race Horse

23

Industry Reform Act.

24

(II)  For thoroughbred tracks, 16 and 2/3% of

25

the money to be distributed under this clause

26

shall be deposited on a weekly basis into the

27

Pennsylvania Breeding Fund established in section

28

223 of the act of December 17, 1981 (P.L.435,

29

No.135), known as the Race Horse Industry Reform

30

Act. For standardbred tracks, 8 and 1/3% of the

- 185 -

 


1

money to be distributed under this clause shall

2

be deposited on a weekly basis into the

3

Pennsylvania Sire Stakes Fund as defined in

4

section 224 of the Race Horse Industry Reform

5

Act; and 8 and 1/3% of the money to be

6

distributed under this clause shall be deposited

7

on a weekly basis into a restricted account in

8

the State Racing Fund to be known as the

9

Pennsylvania Standardbred Breeders Development

10

Fund. The State Harness Racing Commission shall,

11

in consultation with the Secretary of

12

Agriculture, promulgate regulations adopting a

13

standardbred breeders program that will include

14

the administration of the Pennsylvania Stallion

15

Award, the Pennsylvania Bred Award and the

16

Pennsylvania Sired and Bred Award.

17

* * *

18

(e)  Filing of audit.--All horsemen's organizations that 

<--

19

receive funds under this section shall file annually with the

20

appropriate commission and the board an audit prepared by a

<--

21

certified public accountant of all funds received. Such filings

22

shall be open to public review. The horsemen's organizations

23

shall maintain adequate records concerning receipt and

24

distribution of funds allocated to them. All distributions under

25

this section, except for those for health and pension benefits

26

for the members of horsemen's organizations, shall be suspended

27

for any horsemen's organization that has not filed an audit as

28

required under this subsection within six months of the end of

29

the horsemen's organization's fiscal year. Any such

30

distributions suspended are appropriated to the Department of

- 186 -

 


1

Agriculture.

2

* * *

3

Section 12.  Section 1407 of Title 4 is amended by adding

4

subsections to read:

5

§ 1407.  Pennsylvania Gaming Economic Development and Tourism

6

Fund.

7

* * *

8

(e)  Annual report.--The Office of the Budget in cooperation

9

with the Department of Community and Economic Development shall

10

submit an annual report of all distribution of funds under this

11

section to the chairman and minority chairman of the

12

Appropriations Committee of the Senate, the chairman and

13

minority chairman of the Community, Economic and Recreational

14

Development Committee of the Senate, the chairman and minority

15

chairman of the Appropriations Committee of the House of

16

Representatives and the chairman and minority chairman of the

17

Gaming Oversight Committee of the House of Representatives. The

18

report shall include detailed information relating to transfers

19

made from the Pennsylvania Gaming Economic Development and

20

Tourism Fund and all reimbursements, distributions and payments

21

made under subsection (b) or the act of July 25, 2007 (P.L.342,

22

No.53), known as Pennsylvania Gaming Economic Development and

23

Tourism Fund Capital Budget Itemization Act of 2007. The report

24

shall be submitted by January 31, 2010, and by January 31 of

25

each year thereafter.

26

(f)  Local report.--A city of the first class, city of the

27

second class, county of the second class, convention center or

28

convention center authority, sports and exhibition authority of

29

a county of the second class, urban redevelopment authority,

30

airport authority or other entity that receives money from the

- 187 -

 


1

fund pursuant to an Economic Development Capital Budget under

2

subsection (b) or the act of July 25, 2007 (P.L.342, No.53),

3

known as Pennsylvania Gaming Economic Development and Tourism

4

Fund Capital Budget Itemization Act of 2007, shall submit an

5

annual report to the Office of the Budget, the chairman and

6

minority chairman of the Appropriations Committee of the Senate,

7

the chairman and minority chairman of the Community, Economic

8

and Recreational Development Committee of the Senate, the

9

chairman and minority chairman of the Appropriations Committee

10

of the House of Representatives and the chairman and the

11

minority chairman of the Gaming Oversight Committee of the House

12

of Representatives. The report shall include detailed

13

information, including records of expenditures, payments and

14

other distributions made from money received under subsection

15

(b). The initial report shall include information on all funds

16

received prior to January 31, 2010. The report shall be

17

submitted by January 31, 2010, and by January 31 of each year

18

thereafter until all funds under this section are distributed or

19

received. An entity that receives funds after the effective date

20

of this section shall submit an initial report by January 31 of

21

the year following receipt of the funds.

22

(g)  Distribution to international airport.--Notwithstanding

23

the provisions of section 7(d) of the act of July 25, 2007

24

(P.L.342, No.53), known as the Pennsylvania Gaming Economic

25

Development and Tourism Fund Capital Budget Itemization Act of

26

2007, following the distribution of $42.5 million of funds

27

allocated to the county for debt service and economic

28

development projects for an international airport in a county of

29

the second class under section 3(2)(i)(E) of said act, all

30

remaining funds shall be distributed directly to an authority

- 188 -

 


1

that operates an international airport in a county of the second

2

class.

3

Section 13.  Section 1408(a) and (c) of Title 4 are amended

4

and the section is amended by adding a subsection to read:

5

§ 1408.  Transfers from State Gaming Fund.

6

(a)  Transfer for compulsive and problem gambling

7

treatment.--Each year, the sum of [$1,500,000] $2,000,000 

<--

8

$4,000,000 or an amount equal to [.001] .002 .004 multiplied by

<--

9

the total gross terminal revenue of all active and operating

10

licensed gaming entities, whichever is greater, shall be

11

transferred into the Compulsive and Problem Gambling Treatment

12

Fund established in section 1509 (relating to compulsive and

13

problem gambling program).

14

(a.1)  Transfer from grant program.--No later than 60 days

15

after the effective date of this section and annually

16

thereafter, the board shall transfer or cause to be transferred

17

$3,000,000 from the grant program established in subsection (c)

18

to the Compulsive and Problem Gambling Treatment Fund

19

established under section 1509 (relating to compulsive and

20

problem gambling program) solely for the purposes of compulsive

21

and problem gambling and drug and alcohol assessment and

22

treatment.

23

* * *

24

(c)  Local law enforcement grants.--Annually, the sum of

25

$5,000,000 shall be transferred to the board for the [purpose

26

of] purposes authorized in subsection (a.1) and for issuing

27

grants to local law enforcement agencies to enforce and prevent

28

[the unlawful operation of slot machines] all forms of unlawful

29

gambling in this Commonwealth. All sums transferred to the board 

<--

30

for the purpose of issuing grants for law enforcement purposes

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1

which have not been distributed in grants to local law

2

enforcement agencies within 12 months of transfer to the board

3

and which have not been transferred under subsection (a.1) shall

4

be transferred to the Department of Agriculture for distribution

5

under section 5(1) of the act of July 8, 1986 (P.L.437, No.92),

6

known as the Pennsylvania Agricultural Fair Act, to eligible

7

county agricultural societies and other organizations which

8

conduct an annual agricultural fair. For purposes of this

9

subsection, the term "local law enforcement agency" shall

10

include Pennsylvania State Police activities in a municipality

11

which does not have a municipal police department for activities

12

in that municipality.

13

* * *

14

Section 13.1.  Sections 1501(b) and (c), 1504 and 1505 of

15

Title 4 are amended to read:

16

§ 1501.  Responsibility and authority of department.

17

* * *

18

(b)  Application of rules and regulations.--The department

19

may prescribe the extent, if any, to which any rules and

20

regulations shall be applied without retroactive effect. The

21

department shall have authority to prescribe the forms and the

22

system of accounting and recordkeeping to be employed and

23

through its representative shall at all times have power of

24

access to and examination and audit of any equipment and records

25

relating to all aspects of the operation of slot machines and

26

table games under this part.

27

(c)  Procedure.--For purposes of implementing this part, the

28

department may promulgate regulations in the same manner in

29

which the board is authorized as provided in section 1203

30

(relating to temporary regulations) and section 1303A (relating

- 190 -

 


1

to temporary table game regulations).

2

* * *

3

§ 1504.  Wagering on credit.

4

[Slot] Except as otherwise provided in section 1326A

5

(relating to wagering policies), slot machine licensees may not

6

extend credit. Slot machine licensees who do not hold a table

7

game operation certificate may not accept credit cards, charge

8

cards or debit cards from a player for the exchange or purchase

9

of slot machine credits or for an advance of coins or currency

10

to be utilized by a player to play slot machine games or extend

11

credit in any manner to a player so as to enable the player to

12

play slot machines. Slot machine licensees who hold a table game

13

operation certificate may extend credit for slot machine gaming

14

in accordance with section 1326A (relating to wagering

15

policies).

16

§ 1505.  No eminent domain authority.

17

Neither the Commonwealth nor any political subdivision

18

thereof shall have the right to acquire, with or without

19

compensation, through the power of eminent domain any property,

20

easement or land use right for the siting or construction of a

21

licensed facility [for the operation of slot machines by a slot

22

machine licensee].

23

Section 13.2.  Title 4 is amended by adding a section to

<--

24

read:

25

1507.1.  Deteriorated property designations.

26

Real property wherein a licensed gaming facility is located

27

may not be designated as, included in or considered a

28

deteriorated property as defined in the act of December 1, 1977

29

(P.L.237, No.76), known as the Local Economic Revitalization Tax

30

Assistance Act.

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1

Section 13.2 13.3.  Section 1509(b) and (c) of Title 4 are

<--

2

amended and the section is amended by adding subsections to

3

read:

4

§ 1509.  Compulsive and problem gambling program.

5

* * *

6

(b)  Compulsive and Problem Gambling Treatment Fund.--There

7

is hereby established in the State Treasury a special fund to be

8

known as the Compulsive and Problem Gambling Treatment Fund. All

9

moneys in the fund shall be expended for programs for the

10

prevention and treatment of gambling addiction and other

11

emotional and behavioral problems associated with or related to

12

gambling addiction and for the administration of the compulsive

13

and problem gambling program. Moneys in the fund shall be

14

expended for the programs set forth in subsection (d.1)(4)(i),

15

(ii), (iii) and (iv). The fund shall consist of money annually

16

allocated to it from the annual payment established under

17

section 1408 (relating to transfers from State Gaming Fund),

18

money which may be allocated by the board, interest earnings on

19

moneys in the fund and any other contributions, payments or

20

deposits which may be made to the fund.

21

(c)  Notice of availability of assistance.--

<--

22

(1)  Each slot machine licensee shall obtain a toll-free

23

telephone number to be used to provide persons with

24

information on assistance for compulsive or problem gambling.

25

Each licensee shall conspicuously post signs similar to the

26

following statement:

27

If you or someone you know has a gambling problem, help

28

is available. Call (Toll-free telephone number).

29

The signs must be posted within 50 feet of each entrance and

30

exit and within 50 feet of each automated teller machine

- 192 -

 


1

location within the licensed facility.

2

(2)  Each racetrack where slot machines or table games 

3

are operated shall print a statement on daily racing programs

4

provided to the general public that is similar to the

5

following:

6

If you or someone you know has a gambling problem, help

7

is available. Call (Toll-free telephone number).

8

(3)  A licensed facility which fails to post or print the

9

warning sign in accordance with paragraph (1) or (2) shall be

10

assessed a fine of $1,000 a day for each day the sign is not

11

posted or printed as provided in this subsection.

12

(c)  Notice of availability of assistance.--

<--

13

(1)  Each slot machine licensee shall obtain a toll-free

14

telephone number to be used to provide persons with

15

information on assistance for compulsive or problem gambling.

16

Each licensee shall conspicuously post signs similar to the

17

following statement:

18

If you or someone you know has a gambling problem, help

19

is available. Call (Toll-free telephone number).

20

The signs must be posted within 50 feet of each entrance

21

and exit [and], within 50 feet of each automated teller

22

machine location and a minimum of 20 signs must be posted 

23

within the licensed facility.

24

(2)  Each racetrack where slot machines are operated

25

shall print a statement on daily racing programs provided to

26

the general public that is similar to the following:

27

If you or someone you know has a gambling problem, help

28

is available. Call (Toll-free telephone number).

29

(3)  A licensed facility which fails to post or print the

30

warning sign in accordance with paragraph (1) or (2) shall be

- 193 -

 


1

assessed a fine of $1,000 a day for each day the sign is not

2

posted or printed as provided in this subsection.

3

* * *

4

(d.1)  Addiction treatment and assessment.--

5

(1)  The General Assembly recognizes that the expansion

6

of casino-styling gaming in this Commonwealth requires an

7

enhanced awareness of compulsive and problem gambling and the

8

need to develop and implement effective strategies for

9

prevention, assessment and treatment of this behavioral

10

disorder. The General Assembly further recognizes that,

11

according to research, compulsive and problem gambling may

12

overlap with drug and/or alcohol addiction. Therefore, it is

13

the intent of the General Assembly to establish an approach

14

to compulsive and problem gambling prevention, assessment and

15

treatment that will ensure the provision of adequate

16

resources to identify, assess and treat compulsive and

17

problem gambling and drug and/or alcohol addiction.

18

(2)  The sum of $3,000,000 shall be annually transferred

19

from the Compulsive and Problem Gambling Treatment Fund to

20

the Department of Health for allocation to the single county

21

authorities. The moneys so transferred and allocated shall be

22

used by the single county authorities for compulsive and

23

problem gambling and associated drug and/or alcohol addiction

24

assessments and for the related addiction treatment in

25

nonhospital residential detoxification facilities,

26

nonhospital residential rehabilitation facilities and halfway

27

houses licensed by the Department of Health to provide

28

addiction treatment services. Financial counseling may be a

29

required component of treatment, whether it is provided

30

directly by the treatment service provider or subcontracted

- 194 -

 


1

to a third party. No moneys authorized to be transferred

2

under this subsection shall be utilized to supplant other

3

funding for the treatment of drug and/or alcohol addiction.

4

After one year, the board shall commission a study of the

<--

5

impact of the Compulsive and Problem Gambling Treatment Fund

6

in areas where gambling was expanded. The commission shall

7

produce a report that includes data on race, gender,

8

geography and income and a recommendation of whether the

9

fund's appropriation should be increased to a sum up to

10

$5,000,000.

11

(3)  Eligibility to receive treatment services for

12

treatment of compulsive and problem gambling, and drug and/or

13

alcohol addiction associated or related to compulsive and

14

problem gambling under paragraph (1), shall be determined

15

using financial eligibility and other requirements of the

16

single county authorities as approved by the Department of

17

Health.

18

(4)  Within 60 days of the effective date of this

19

subsection, the Department of Health's Bureau of Drug and

20

Alcohol Programs and the board's Office of Compulsive and

21

Problem Gambling shall collaborate with providers and other

22

persons or entities with expertise in the field of compulsive

23

and problem gambling to:

24

(i)  Develop and implement a strategic plan for the

25

prevention and treatment of compulsive and problem

26

gambling and associated behavior disorders, including

27

drug and/or alcohol addictions.

28

(ii)  Adopt compulsive and problem gambling treatment

29

standards to be integrated with the Bureau of Drug and

30

Alcohol Program's uniform Statewide guidelines that

- 195 -

 


1

govern the provision of addiction treatment services. The

2

standards may provide criteria for the certification of

3

compulsive and problem gambling counselors.

4

(iii)  Develop, in collaboration with the appropriate

5

State agencies, a method to link compulsive and problem

6

gambling data collection and referral information to

7

crisis response hotlines and youth and domestic violence

8

programs or providers.

9

(iv)  Collaborate with the Department of Health, the

10

Department of Aging and other appropriate offices and

11

agencies of State or local government and persons and

12

entities, public or private, with expertise in compulsive

13

and problem gambling treatment to educate youth and older

14

Pennsylvanians through prevention training and materials

15

regarding the prevention, recognition and treatment of

16

compulsive and problem gambling problems. The Bureau of

17

Drug and Alcohol Programs and the board's Office of

18

Compulsive and Problem Gambling shall work with the

19

identified agencies and other agencies and entities to

20

develop demographic-specific compulsive and problem

21

gambling prevention, intervention and treatment programs.

22

(d.2)  Report.--Beginning October 1, 2010, and every October

23

1 thereafter, the Bureau of Drug and Alcohol Programs and the

24

board's Office of Compulsive and Problem Gambling shall jointly

25

submit an annual report to the Governor and the General Assembly

26

reporting data and progress on and activities initiated to

27

facilitate the development and implementation of the strategic

28

plan for the prevention and treatment of compulsive and problem

29

gambling and associated behavior disorders and addictions and

30

the other requirements of this section.

- 196 -

 


1

* * *

2

Section 13.3 13.4.  Sections 1510(a), 1511(b) and 1512(a.1),

<--

3

(a.5) and (b) of Title 4 are amended to read:

4

§ 1510.  Labor hiring preferences.

5

(a)  Category 1, 2, and 3 licensed facilities, generally.--

6

Each licensed gaming entity shall prepare a hiring plan for

7

employees of its respective licensed facility which promotes a

8

diverse work force, minority participation and personnel from

9

within the surrounding geographical area. The hiring plan shall

10

be approved by the board and shall be consistent with the goals

11

outlined in sections 1212 (relating to diversity goals of board)

12

and 1304A (relating to Commonwealth resident employment goals).

13

* * *

14

§ 1511.  Declaration of exemption from Federal laws prohibiting

15

slot machines.

16

* * *

17

(b)  Legal shipments.--All shipments of [slot machines] 

18

gambling devices, as defined in section 1 of the Gambling

19

Devices Transportation Act (64 Stat. 1134, 15 U.S.C. § 1171), 

20

into this Commonwealth, the registering, recording and labeling

21

of which has been effected by the manufacturer and supplier of

22

those devices, in accordance with sections [5 and 7] 3 and 4 of

23

the Gambling Devices Transportation Act (64 Stat. 1134, 15

24

U.S.C. §§ [1175 and 1177] 1173 and 1174), shall be deemed legal

25

shipments of [slot machines] gambling devices into this

26

Commonwealth.

27

§ 1512.  Financial and employment interests.

28

* * *

29

(a.1)  Employment.--Except as may be provided by rule or

30

order of the Pennsylvania Supreme Court and except as provided

- 197 -

 


1

in section 1512.1 (relating to additional restrictions), no

2

executive-level public employee, public official or party

3

officer, or an immediate family member thereof, shall be

4

employed by an applicant or a slot machine licensee,

5

manufacturer licensee, supplier licensee or licensed racing

6

entity, or by any holding company, affiliate, intermediary or

7

subsidiary thereof, while the individual is an executive-level

8

public employee, public official or party officer and for one

9

year following termination of the individual's status as an

10

executive-level public employee, public official or party

11

officer.

12

* * *

13

(a.5)  State Ethics Commission.--The State Ethics Commission

14

shall publish a list of all State, county, municipal and other

15

government positions that meet the definitions of "public

16

official" as defined under subsection (b) or "executive-level

17

public employee" [under subsection (b)] and a list of

18

individuals subject to section 1512.1. The Office of

19

Administration shall assist the [Ethics Commission] commission 

20

in the development of the list, which shall be published in the

21

Pennsylvania Bulletin biennially and on the board's website.

22

Upon request, each public official shall have a duty to provide

23

the [Ethics Commission] commission with adequate information to

24

accurately develop and maintain the list. The [Ethics

25

Commission] commission may impose a civil penalty under 65

26

Pa.C.S. § 1109(f) (relating to penalties) upon any individual,

27

including any public official or executive-level public employee

28

who fails to cooperate with the [Ethics Commission] commission 

29

under this subsection. An individual who relies in good faith on

30

the list published by the commission shall not be subject to any

- 198 -

 


1

penalty for a violation of this section.

2

(b)  Definitions.--As used in this section, the following

3

words and phrases shall have the meanings given to them in this

4

subsection:

5

["Executive-level public employee."  The term shall include

6

the following:

7

(1)  Deputy Secretaries of the Commonwealth and the

8

Governor's Office executive staff.

9

(2)  An employee of the Executive Branch with

10

discretionary power which may affect or influence the outcome

11

of a State agency's action or decision and who is involved in

12

the development of regulations or policies relating to a

13

licensed entity or who is involved in other matters under

14

this part. The term shall include an employee with law

15

enforcement authority.

16

(3)  An employee of a county or municipality with

17

discretionary powers which may affect or influence the

18

outcome of the county's or municipality's action or decision

19

and who is involved in the development of law, regulation or

20

policy relating to a licensed entity or who is involved in

21

other matters under this part. The term shall include an

22

employee with law enforcement authority.

23

(4)  An employee of a department, agency, board,

24

commission, authority or other governmental body not included

25

in paragraph (1), (2) or (3) with discretionary power which

26

may affect or influence the outcome of the governmental

27

body's action or decision and who is involved in the

28

development of regulation or policy relating to a licensed

29

entity or who is involved in other matters under this part.

30

The term shall include an employee with law enforcement

- 199 -

 


1

authority.]

2

"Financial interest."  Owning or holding, or being deemed to

3

hold, debt or equity securities or other ownership interest or

4

profits interest. A financial interest shall not include any

5

debt or equity security, or other ownership interest or profits

6

interest, which is held or deemed to be held in any of the

7

following:

8

(1)  A blind trust over which the executive-level public

9

employee, public official, party officer or immediate family

10

member thereof may not exercise any managerial control or

11

receive income during the tenure of office and the period

12

under subsection (a). The provisions of this paragraph shall

13

apply only to blind trusts established prior to the effective

14

date of this paragraph.

15

(2)  Securities that are held in a pension plan, profit-

16

sharing plan, individual retirement account, tax-sheltered

17

annuity, a plan established pursuant to section 457 of the

18

Internal Revenue Code of 1986 (Public Law 99-514, 26 U.S.C. §

19

1 et seq.) or any successor provision deferred compensation

20

plan whether qualified or not qualified under the Internal

21

Revenue Code of 1986 or any successor provision or other

22

retirement plan that:

23

(i)  is not self-directed by the individual; and

24

(ii)  is advised by an independent investment adviser

25

who has sole authority to make investment decisions with

26

respect to contributions made by the individual to these

27

plans.

28

(3)  A tuition account plan organized and operated

29

pursuant to section 529 of the Internal Revenue Code of 1986

30

(Public Law 99-514, 26 U.S.C. § 529) that is not self-

- 200 -

 


1

directed by the individual.

2

(4)  A mutual fund where the interest owned by the mutual

3

fund in a licensed entity does not constitute a controlling

4

interest as defined in this part.

5

"Immediate family."  A spouse, minor child or unemancipated

6

child.

7

"Law enforcement authority."  The power to conduct

8

investigations of or to make arrests for criminal offenses.

9

"Party officer."  A member of a national committee; a

10

chairman, vice chairman, secretary, treasurer or counsel of a

11

State committee or member of the executive committee of a State

12

committee; a county chairman, vice chairman, counsel, secretary

13

or treasurer of a county committee in which a licensed facility

14

is located; or a city chairman, vice chairman, counsel,

15

secretary or treasurer of a city committee of a city in which a

16

licensed facility is located.

17

"Public official."  The term shall include the following:

18

(1)  The Governor, Lieutenant Governor, a member of the

19

Governor's cabinet, Treasurer, Auditor General and Attorney

20

General of the Commonwealth.

21

(2)  A member of the Senate or House of Representatives

22

of the Commonwealth.

23

(3)  An individual elected or appointed to any office of

24

a county or municipality that directly receives a

25

distribution of revenue under this part.

26

(4)  An individual elected or appointed to a department,

27

agency, board, commission, authority or other governmental

28

body not included in paragraph (1), (2) or (3) that directly

29

receives a distribution of revenue under this part.

30

(5)  An individual elected or appointed to a department,

- 201 -

 


1

agency, board, commission, authority, county, municipality or

2

other governmental body not included in paragraph (1), (2) or

3

(3) with discretionary power which may influence or affect

4

the outcome of an action or decision and who is involved in

5

the development of regulation or policy relating to a

6

licensed entity or who is involved in other matters under

7

this part.

8

The term does not include a member of a school board or an

9

individual who held an uncompensated office with a governmental

10

body prior to January 1, 2006, and who no longer holds the

11

office as of January 1, 2006. The term includes a member of an

12

advisory board or commission which makes recommendations

13

relating to a licensed facility.

14

Section 14.  Title 4 is amended by adding a section to read:

15

§ 1512.1.  Additional restrictions.

16

(a)  Restrictions.--An individual member of the Pennsylvania

17

State Police or employee of the Office of Attorney General,

18

Office of the Auditor General or department whose duties

19

substantially involve licensing or enforcement, the development

20

of laws, regulations or policy or who has other discretionary

21

authority which may affect the gaming industry in this

22

Commonwealth under this part shall not do any of the following:

23

(1)  Accept employment with an applicant or licensed

24

entity, or an affiliate, intermediary, subsidiary or holding

25

company thereof, for a period of two years after the

26

termination of the employment relating to the conduct of

27

gaming.

28

(2)  Appear before the board in any hearing or proceeding

29

or participate in any other activity on behalf of any

30

applicant, licensee, permittee or licensed entity, or an

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1

affiliate, intermediary, subsidiary or holding company

2

thereof, for a period of two years after termination of the

3

employment. Nothing shall prevent a current or former trooper

4

or employee subject to this section from appearing in any

5

proceeding as a witness where the employee is being called to

6

testify concerning any fact or information obtained during

7

the course of employment or related to the performance of

8

duties while so employed.

9

(3)  As a condition of employment, an individual subject

10

to this paragraph shall sign an affidavit that the individual

11

will not accept employment with or be retained by any

12

applicant, licensed entity or an affiliate, intermediary,

13

subsidiary or holding company thereof for a period of two

14

years from the termination of employment.

15

(b)  Employment or retention.--An applicant or licensed

16

entity or an affiliate, intermediary, subsidiary or holding

17

company thereof shall not employ or retain an individual who

18

signed an affidavit required by this subsection. An applicant or

19

licensed entity or an affiliate, intermediary, subsidiary or

20

holding company that knowingly employs or retains an individual

21

in violation of this subsection shall be subject to a penalty

22

under section 1518(c) (relating to prohibited acts; penalties).

23

(c)  Violation.--If an employee or independent contractor of

24

the board violates any provision of this section, the employing

25

agency or department may, upon notice and hearing, terminate the

26

employment, and the person shall be ineligible for future

27

employment with the agency or department and shall be prohibited

28

from applying for a license or permit, becoming an independent

29

contractor or registering as a licensed entity representative

30

for a period of five years from the date of termination of the

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1

employment or contract.

2

(d)  Code of conduct.--The Pennsylvania State Police,

3

Attorney General, Auditor General and department shall adopt a

4

comprehensive code of conduct which shall supplement all other

5

requirements under this part and 65 Pa.C.S. Pt. II (relating to

6

accountability), as applicable, and shall provide guidelines

7

applicable to members, employees and any independent contractors

8

of the agency, department or office whose duties involve the

9

enforcement or regulation of gaming under this part and the

10

immediate families of these members, as defined in section

11

1202.1(e) (relating to code of conduct), employees and

12

independent contractors to enable them to avoid any perceived or

13

actual conflict of interest and to promote public confidence in

14

the integrity and impartiality of gaming enforcement and

15

regulation. At a minimum, the code of conduct adopted under this

16

section shall include the restrictions applicable to the board

17

under section 1202.1(c), except that the restrictions under

18

section 1202.1(c)(5) shall not apply to an elected Attorney

19

General or Auditor General.

20

Section 14.1.  Sections 1513(c) and 1514(b), (f), (g) and (h)

<--

21

of Title 4 are amended to read:

22

§ 1513.  Political influence.

23

* * *

24

(c)  Penalties.--The first violation of this section by a

25

licensed gaming entity or any person that holds a controlling

26

interest in such gaming entity, or a subsidiary company thereof,

27

and any officer, director or management-level employee of such

28

licensee shall be punishable by a fine of not less than an

29

average single day's gross terminal revenue of the licensed

30

gaming entity derived from the operation of slot machines and

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1

gross table game revenue from the operation of table games in

2

this Commonwealth; a second violation of this section, within

3

five years of the first violation, shall be punishable by at

4

least a one-day suspension of the license held by the licensed

5

gaming entity and a fine not less than an average two days'

6

gross revenue of the licensed gaming entity; a third violation

7

of this section within five years of the second violation shall

8

be punishable by the immediate revocation of the license held by

9

the licensed gaming entity. The first violation of this section

10

by a manufacturer or supplier licensed pursuant to this part or

11

by any person that holds a controlling interest in such

12

manufacturer or supplier, or a subsidiary company thereof, and

13

any officer, director or management-level employee of such a

14

licensee shall be punishable by a fine of not less than one

15

day's average of the gross profit from sales made by the

16

manufacturer or supplier in Pennsylvania during the preceding

17

12-month period or portion thereof in the event the manufacturer

18

or supplier has not operated in Pennsylvania for 12 months; a

19

second violation of this section within five years of the first

20

violation shall be punishable by a one-month suspension of the

21

license held by the manufacturer or supplier and a fine of not

22

less than two times one day's average of the gross profit from

23

sales made by the manufacturer or supplier in Pennsylvania

24

during the preceding 12-month period or portion thereof in the

25

event the manufacturer or supplier has not operated in

26

Pennsylvania for 12 months. In no event shall the fine imposed

27

under this section be in an amount less than $50,000 for each

28

violation. In addition to any fine or sanction that may be

29

imposed by the board, any person who makes a contribution in

30

violation of this section commits a misdemeanor of the third

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1

degree.

2

* * *

3

Section 14.1.  Section 1513 of Title 4 is reenacted and

<--

4

amended to read:

5

§ 1513.  Political influence.

6

(a)  Contribution restriction.--The following persons shall

7

be prohibited from contributing any money or in-kind

8

contribution to a candidate for nomination or election to any

9

public office in this Commonwealth, or to any political party

10

committee or other political committee in this Commonwealth or

11

to any group, committee or association organized in support of a

12

candidate, political party committee or other political

13

committee in this Commonwealth:

14

(1)  An applicant for a slot machine license,

15

manufacturer license, supplier license, principal license,

16

key employee license or horse or harness racing license.

17

(2)  A slot machine licensee, licensed manufacturer,

18

licensed supplier or licensed racing entity.

19

(3)  A licensed principal or licensed key employee of a

20

slot machine licensee, licensed manufacturer, licensed

21

supplier or licensed racing entity.

22

(4)  An affiliate, intermediary, subsidiary or holding

23

company of a slot machine licensee, licensed manufacturer,

24

licensed supplier or licensed racing entity.

25

(5)  A licensed principal or licensed key employee of an

26

affiliate, intermediary, subsidiary or holding company of a

27

slot machine licensee, licensed manufacturer, licensed

28

supplier or licensed racing entity.

29

(6)  A person who holds a similar gaming license in

30

another jurisdiction and the affiliates, intermediaries,

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1

subsidiaries, holding companies, principals or key employees

2

thereof.

3

(a.1)  Contributions to certain associations and

4

organizations barred.--The individuals prohibited from making

5

political contributions under subsection (a) shall not make a

6

political contribution of money or an in-kind contribution to

7

any association or organization, including a nonprofit

8

organization, that has been solicited by, or knowing that the

9

contribution or a portion thereof will be contributed to, the

10

elected official, executive-level public employee or candidate

11

for nomination or election to a public office in this

12

Commonwealth.

13

(a.2)  Internet website.--

14

(1)  The board shall establish an Internet website that

15

includes a list of all applicants for and holders of a slot

16

machine license, manufacturer license, supplier license or

17

racing entity license, and the affiliates, intermediaries,

18

subsidiaries, holding companies, principals and key employees

19

thereof, all persons holding a similar gaming license in

20

another jurisdiction, and the affiliates, intermediaries,

21

subsidiaries, holding companies, principals and key employees

22

thereof, and any other entity in which the applicant or

23

licensee has any debt or equity security or other ownership

24

or profits interest. An applicant or licensee shall notify

25

the board within seven days of the discovery of any change in

26

or addition to the information. The list shall be published

27

semiannually in the Pennsylvania Bulletin.

28

(2)  An individual who acts in good faith and in reliance

29

on the information on the Internet website shall not be

30

subject to any penalties or liability imposed for a violation

- 207 -

 


1

of this section.

2

(3)  The board shall request the information required

3

under paragraph (1) from persons licensed in another

4

jurisdiction who do not hold a license in this Commonwealth

5

and from regulatory agencies in the other jurisdiction. If a

6

licensee in another jurisdiction refuses to provide the

7

information required under paragraph (1), the person and its

8

officers, directors or persons with a controlling interest

9

shall be ineligible to receive any license under this part.

10

(b)  Annual certification.--The chief executive officer, or

11

other appropriate individual, of each applicant for a slot

12

machine license, manufacturer license or supplier license,

13

licensed racing entity, licensed supplier, licensed manufacturer

14

or licensed gaming entity shall annually certify under oath to

15

the board and the Department of State that such applicant or

16

licensed racing entity, licensed supplier, licensed manufacturer

17

or licensed gaming entity has developed and implemented internal

18

safeguards and policies intended to prevent a violation of this

19

provision and that such applicant or licensed racing entity or

20

licensed gaming entity has conducted a good faith investigation

21

that has not revealed any violation of this provision during the

22

past year.

23

(c)  Penalties.--The first violation of this section by a

24

licensed gaming entity or any person that holds a controlling

25

interest in such gaming entity, or a subsidiary company thereof,

26

and any officer, director or management-level employee of such

27

licensee shall be punishable by a fine of not less than an

28

average single day's gross terminal revenue of the licensed

29

gaming entity derived from the operation of slot machines and

30

gross table game revenue from the operation of table games in

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1

this Commonwealth; a second violation of this section, within

2

five years of the first violation, shall be punishable by at

3

least a one-day suspension of the license held by the licensed

4

gaming entity and a fine not less than an average two days'

5

gross revenue of the licensed gaming entity; a third violation

6

of this section within five years of the second violation shall

7

be punishable by the immediate revocation of the license held by

8

the licensed gaming entity. The first violation of this section

9

by a manufacturer or supplier licensed pursuant to this part or

10

by any person that holds a controlling interest in such

11

manufacturer or supplier, or a subsidiary company thereof, and

12

any officer, director or management-level employee of such a

13

licensee shall be punishable by a fine of not less than one

14

day's average of the gross profit from sales made by the

15

manufacturer or supplier in Pennsylvania during the preceding

16

12-month period or portion thereof in the event the manufacturer

17

or supplier has not operated in Pennsylvania for 12 months; a

18

second violation of this section within five years of the first

19

violation shall be punishable by a one-month suspension of the

20

license held by the manufacturer or supplier and a fine of not

21

less than two times one day's average of the gross profit from

22

sales made by the manufacturer or supplier in Pennsylvania

23

during the preceding 12-month period or portion thereof in the

24

event the manufacturer or supplier has not operated in

25

Pennsylvania for 12 months. In no event shall the fine imposed

26

under this section be in an amount less than $50,000 for each

27

violation. In addition to any fine or sanction that may be

28

imposed by the board, any person who makes a contribution in

29

violation of this section commits a misdemeanor of the third

30

degree.

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1

(d)  Definitions.--As used in this section, the following

2

words and phrases shall have the meanings given to them in this

3

subsection:

4

"Contribution."  Any payment, gift, subscription, assessment,

5

contract, payment for services, dues, loan, forbearance, advance

6

or deposit of money or any valuable thing made to a candidate or

7

political committee for the purpose of influencing any election

8

in this Commonwealth or for paying debts incurred by or for a

9

candidate or committee before or after any election. The term

10

shall include the purchase of tickets for events including

11

dinners, luncheons, rallies and other fundraising events; the

12

granting of discounts or rebates not available to the general

13

public; or the granting of discounts or rebates by television

14

and radio stations and newspapers not extended on an equal basis

15

to all candidates for the same office; and any payments provided

16

for the benefit of any candidate, including payments for the

17

services of a person serving as an agent of a candidate or

18

committee by a person other than the candidate or committee or

19

person whose expenditures the candidate or committee must

20

report. The term also includes any receipt or use of anything of

21

value received by a political committee from another political

22

committee and also includes any return on investments by a

23

political committee.

24

"Political committee."  Any committee, club, association or

25

other group of persons which receives contributions or makes

26

expenditures.

27

Section 14.2.  Section 1514(b), (f), (g) and (h) of Title 4

28

are amended to read:

29

§ 1514.  Regulation requiring exclusion of certain persons.

30

* * *

- 210 -

 


1

(b)  Categories to be defined.--The board shall promulgate

2

definitions establishing those categories of persons who shall

3

be excluded pursuant to this section, including cheats and

4

persons whose privileges for licensure, certification, permit or

5

registration have been revoked.

6

* * *

7

(f)  Notice.--Whenever the [board places] bureau seeks to

8

place the name of any person on a list pursuant to this section,

9

the [board] bureau shall serve notice of this fact to such

10

person by personal service or certified mail at the last known

11

address of the person. The notice shall inform the individual of

12

the right to request a hearing under subsection (g).

13

(g)  Hearing.--Within 30 days after receipt of notice in

14

accordance with subsection (f), the person named for exclusion

15

or ejection may demand a hearing before the board, at which

16

hearing the [board] bureau shall have the affirmative obligation

17

to demonstrate that the person named for exclusion or ejection

18

satisfies the criteria for exclusion established by this section

19

and the board's regulations. Failure of the person to demand a

20

hearing within 30 days after service shall be deemed an

21

admission of all matters and facts alleged in the [board's] 

22

bureau's notice and shall preclude [a] the person from having an

23

administrative hearing, but shall in no way affect the right to

24

judicial review as provided in this section.

25

(h)  Review.--If, upon completion of a hearing on the notice

26

of exclusion or ejection, the board determines that placement of

27

the name of the person on the exclusion list is appropriate, the

28

board shall make and enter an order to that effect, which order

29

shall be served on all [slot machine licensees] licensed gaming

30

entities. The order shall be subject to review by the

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1

Commonwealth Court in accordance with the rules of court.

2

Section 14.2.  Title 4 is amended by adding a section to

3

read:

4

§ 1516.1.  Prosecutorial and adjudicatory functions.

5

The board shall adopt regulations and procedures necessary to

6

ensure that the Bureau of Investigations and Enforcement is a

7

distinct entity and to prevent commingling of the investigatory

8

and prosecutorial functions of the Bureau of Investigations and

9

Enforcement under section 1517 (relating to investigations and

10

enforcement) and the adjudicatory functions of the board.

11

Regulations and procedures under this section shall do all of

<--

12

the following:

13

(1)  Provide that the executive director and the chief

14

counsel of the board shall not direct or limit the scope of a

15

background investigation conducted by the bureau.

16

(2)  Incorporate subsection (c.1), on prohibitions, of

17

section 1202.1(c.1) (relating to code of conduct) and any

18

other applicable provisions of section 1202.1.

19

Section 15.  Section 1517(a.1)(6), (b)(1), (c)(12) and (e)(1)

20

of Title 4 are amended, subsection (a.2)(1) is amended by adding

21

a subparagraph and subsection (c) is amended by adding a 

<--

22

paragraph paragraphs to read:

<--

23

§ 1517.  Investigations and enforcement.

24

* * *

25

(a.1)  Powers and duties of bureau.--The Bureau of

26

Investigations and Enforcement shall have the following powers

27

and duties:

28

* * *

29

(6)  Conduct [audits] reviews of a licensed entity as

30

necessary to ensure compliance with this part. [An audit] A

- 212 -

 


1

review may include the review of accounting, administrative

2

and financial records, management control systems, procedures

3

and other records utilized by a licensed entity.

4

* * *

5

(a.2)  Office of Enforcement Counsel.--

6

(1)  There is established within the bureau an Office of

7

Enforcement Counsel which shall act as the prosecutor in all

8

noncriminal enforcement actions initiated by the bureau under

9

this part and shall have the following powers and duties:

10

* * *

11

(iv)  Petition the board for the appointment of a

12

trustee under section 1332 (relating to appointment of

13

trustee).

14

* * *

15

(b)  Powers and duties of department.--

16

(1)  The department shall at all times have the power of

17

access to examination and audit of any equipment and records

18

relating to all aspects of the operation of slot machines or

19

table games under this part.

20

* * *

21

(c)  Powers and duties of the Pennsylvania State Police.--The

22

Pennsylvania State Police shall have the following powers and

23

duties:

24

* * *

25

(1.1)  Promptly conduct a background investigation on an

<--

26

individual selected by the board to fill the position of

27

executive director of the board, director of the bureau,

28

chief counsel of the board or the director of the Office of

29

Enforcement Counsel and submit the results to the board.

30

* * *

- 213 -

 


1

(12)  Conduct audits or verification of information of

2

slot machine or table game operations at such times, under

3

such circumstances and to such extent as the bureau

4

determines. This paragraph includes reviews of accounting,

5

administrative and financial records and management control

6

systems, procedures and records utilized by a slot machine

7

licensee.

8

* * *

9

(14)  By March 1 of each year, the Commissioner of the

10

Pennsylvania State Police shall submit a report to the

11

Appropriations Committee of the Senate, the Community,

12

Economic and Recreational Development Committee of the

13

Senate, the Appropriations Committee of the House of

14

Representatives and the Gaming Oversight Committee of the

15

House of Representatives. The report shall summarize law

16

enforcement activities at each licensed facility during the

17

previous calendar year and shall include all of the

18

following:

19

(i)  The number of arrests at each licensed facility.

20

(ii)  A list of specific offenses charged for each

21

offense.

22

(iii)  The number of criminal prosecutions resulting

23

from arrests.

24

(iv)  The number of convictions resulting from

25

prosecutions.

26

(v)  The number of Pennsylvania State Police troopers

27

assigned to each licensed facility and to the gaming unit

28

at the Pennsylvania State Police headquarters.

29

(vi)  The number and nature of disciplinary actions

<--

30

taken and complaints made against Pennsylvania State

- 214 -

 


1

Police troopers in a licensed facility.

2

(vii)  The closest local police station, Pennsylvania

3

State Police station and regional Pennsylvania State

4

Police headquarters to each licensed facility.

5

* * *

6

(e)  Inspection, seizure and warrants.--

7

(1)  The bureau, the department and the Pennsylvania

8

State Police shall have the authority without notice and

9

without warrant to do all of the following in the performance

10

of their duties:

11

(i)  Inspect and examine all premises where slot

12

machine or table game operations are conducted, gaming

13

devices or equipment are manufactured, sold, distributed

14

or serviced or where records of these activities are

15

prepared or maintained.

16

(ii)  Inspect all equipment and supplies in, about,

17

upon or around premises referred to in subparagraph (i).

18

(iii)  Seize, summarily remove and impound equipment

19

and supplies from premises referred to in subparagraph

20

(i) for the purposes of examination and inspection.

21

(iv)  Inspect, examine and audit all books, records

22

and documents pertaining to a slot machine licensee's

23

operation.

24

(v)  Seize, impound or assume physical control of any

25

book, record, ledger, game, device, cash box and its

26

contents, counting room or its equipment or slot machine

27

or table game operations.

28

* * *

29

Section 16.  Section 1517.2 of Title 4 is amended to read:

30

§ 1517.2.  Conduct of [public officials and] board employees.

- 215 -

 


1

(a)  [Ex parte discussion prohibited.--An attorney

2

representing the bureau or the Office of Enforcement Counsel, or

3

an employee of the bureau or office involved in the hearing

4

process, shall not discuss the case ex parte with a hearing

5

officer, chief counsel or member] (Reserved).

6

(b)  [Other prohibitions.--A hearing officer, the chief

7

counsel or a member shall not discuss or exercise any

8

supervisory responsibility over any employee with respect to an

9

enforcement hearing with which the employee is involved]

10

(Reserved).

11

(c)  Disqualification.--If it becomes necessary for the chief

12

counsel or member to become involved on behalf of the board in

13

any enforcement proceeding, the chief counsel or member shall be

14

prohibited from participating in the adjudication of that matter

15

and shall designate appropriate individuals to exercise

16

adjudicatory functions.

17

Section 16.1.  Section 1518(a)(2), (3), (4), (5), (7), (8),

18

(11) and (13) and (c)(1)(v) and (3) of Title 4 are amended,

19

subsections (a) and (b) are amended by adding paragraphs and the

20

section is amended by adding subsections to read:

21

§ 1518.  Prohibited acts; penalties.

22

(a)  Criminal offenses.--

23

* * *

24

(2)  It shall be unlawful for a person to willfully:

25

(i)  fail to report, pay or truthfully account for

26

and pay over any license fee, authorization fee, tax or

27

assessment imposed under this part; or

28

(ii)  attempt in any manner to evade or defeat any

29

license fee, authorization fee, tax or assessment imposed

30

under this part.

- 216 -

 


1

(3)  It shall be unlawful for any licensed entity, gaming

2

employee, key employee or any other person to permit a slot

3

machine, table game or table game device to be operated,

4

transported, repaired or opened on the premises of a licensed

5

facility by a person other than a person licensed or

6

permitted by the board pursuant to this part.

7

(4)  It shall be unlawful for any licensed entity or

8

other person to manufacture, supply or place slot machines,

9

table games or table game devices into play or display slot

10

machines, table games or table game devices on the premise of

11

a licensed facility without the authority of the board.

12

(5)  Except as provided for in section 1326 (relating to

13

license renewals), it shall be unlawful for a licensed entity

14

or other person to manufacture, supply, operate, carry on or

15

expose for play any slot machine, table game or table game

16

device after the person's license has expired and prior to

17

the actual renewal of the license.

18

* * *

19

(7)  (i)  Except as set forth in subparagraph (ii), it

20

shall be unlawful for an individual to use or possess a

21

cheating or thieving device, counterfeit or altered

22

billet, ticket, token or similar objects accepted by a

23

slot machine or counterfeit or altered slot machine-

24

issued tickets or vouchers at a licensed facility.

25

(ii)  An authorized employee of a licensee or an

26

employee of the board may possess and use a cheating or

27

thieving device, counterfeit or altered billet, ticket,

28

token or similar objects accepted by a slot machine or

29

counterfeit or altered slot machine-issued tickets or

30

vouchers in performance of the duties of employment.

- 217 -

 


1

[(iii)  As used in this paragraph, the term "cheating

2

or thieving device" includes, but is not limited to, a

3

device to facilitate the alignment of any winning

4

combination or to remove from any slot machine money or

5

other contents. The term includes, but is not limited to,

6

a tool, drill, wire, coin or token attached to a string

7

or wire and any electronic or magnetic device.]

8

(7.1)  It shall be unlawful for an individual to do any

9

of the following:

10

(i)  Use or possess counterfeit, marked, loaded,

11

tampered with or altered chips or other cheating devices

12

in the conduct of gaming under this part, except that an

13

authorized employee of a licensee or an authorized

14

employee of the board may possess and use counterfeit

15

chips, cards or dice that have been marked, loaded or

16

tampered with, or other cheating devices in performance

17

of the duties of employment for training or testing

18

purposes only.

19

(ii)  Knowingly, by a trick or sleight of hand

20

performance or by fraud or fraudulent scheme, cards, dice

21

or device, for themselves or for another, win or attempt

22

to win money or property at a licensed facility or a

23

representation of either or reduce or attempt to reduce a

24

losing wager.

25

(8)  (i)  Except as set forth in subparagraph (ii), it

26

shall be unlawful for an individual to knowingly possess

27

or use while on the premises of a licensed facility a key

28

or device designed for the purpose of and suitable for

29

opening or entering any slot machine, drop box or coin

30

box which is located on the premises of the licensed

- 218 -

 


1

facility.

2

(ii)  An authorized employee of a licensee or a

3

member of the board may possess and use a device referred

4

to in subparagraph (i) in the performance of the duties

5

of employment.

6

* * *

7

(11)  It shall be unlawful for a licensed gaming entity

8

that is a licensed racing entity and that has lost the

9

license issued to it by either the State Horse Racing

10

Commission or the State Harness Racing Commission under the

11

Race Horse Industry Reform Act or that has had that license

12

suspended to operate slot machines or table games at the

13

racetrack for which its slot machine license was issued

14

unless the license issued to it by either the State Horse

15

Racing Commission or the State Harness Racing Commission will

16

be subsequently reissued or reinstated within 30 days after

17

the loss or suspension.

18

* * *

19

(13)  It shall be unlawful for any person under 18 years

20

of age to be permitted in the area of a licensed facility

21

where slot machines or table games are operated.

22

(14)  It shall be unlawful for any key employee, boxman,

23

floorman or any other casino employee who serves in a

24

supervisory position to solicit or accept and for any other

25

gaming employee to solicit any tip or gratuity from any

26

player or patron at the licensed facility where the person is

27

employed.

28

(15)  It shall be unlawful for a licensed gaming entity

29

to require a wager to be greater than the stated minimum or

30

less than the stated maximum. However, a wager made by a

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1

patron and not rejected by a licensed gaming entity prior to

2

commencement of play shall be treated as a valid wager. A

3

wager accepted by a dealer shall be paid or lost in its

4

entirety in accordance with the rules of the game,

5

notwithstanding that the wager exceeded the current table

6

maximum wager or was lower than the current table minimum

7

wager.

8

(16)  A person that engages in conduct prohibited by 18

9

Pa.C.S. § 6308 in a licensed facility commits an offense.

10

(17)  It shall be unlawful for any person to claim,

11

collect or take, or attempt to claim, collect or take, money

12

or anything of value in or from a slot machine, table game or

13

table game device, with intent to defraud, or to claim,

14

collect or take an amount greater than the amount won, or to

15

manipulate with the intent to cheat, any component of any

16

slot machine, table game or table game device in a manner

17

contrary to the designed and normal operational purpose.

18

(b)  Criminal penalties and fines.--

19

* * *

20

(3)  A person that violates subsection (a)(2), (3), (4),

21

(5), (6), (7), (7.1), (8), (9), (10), (11), (12), (14), (15)

22

or (17) commits a misdemeanor of the first degree. A person

23

that is convicted of a second or subsequent violation of

24

subsection (a)(2), (3), (4), (5), (6), (7), (7.1), (8), (9),

25

(10), (11), (12) or (17) commits a felony of the second

26

degree.

27

(4)  A person that commits an offense in violation of

28

subsection (a)(13) commits a summary offense and upon

29

conviction of a first offense shall be sentenced to pay a

30

fine of not less than $200 nor more than $1,000. A person

- 220 -

 


1

that is convicted of a second or subsequent offense shall be

2

sentenced to pay a fine of not less than $500 nor more than

3

$1,500. In addition to the fine imposed, any person convicted

4

of an offense under subsection (a)(13) may be sentenced to

5

perform a period of community service not to exceed 40 hours.

6

(5)  A person that commits an offense in violation of

7

subsection (a)(16) commits an offense to be graded in

8

accordance with 18 Pa.C.S. § 6308 (relating to purchase,

9

consumption, possession or transportation of liquor or malt

10

or brewed beverages) and shall be subject to the same

11

penalties imposed pursuant to 18 Pa.C.S. §§ 6308 and 6310.4

12

(relating to restriction of operating privileges) except that

13

the fine imposed for a violation of subsection (a)(16) shall

14

be not less than $350 nor more than $1,000. The police

15

department making an arrest for a suspected violation of

16

subsection (a)(16) shall notify the parents or guardian of

17

the minor charged.

18

(c)  Board-imposed administrative sanctions.--

19

(1)  In addition to any other penalty authorized by law,

20

the board may impose without limitation the following

21

sanctions upon any licensee or permittee:

22

* * *

23

(v)  Suspend the license of any licensed gaming

24

entity for violation of or attempting to violate any

25

provisions of this part or regulations promulgated under

26

this part relating to its slot machine or table game 

27

operations.

28

* * *

29

(3)  In addition to any other fines or penalties that the

30

board may impose under this part or regulation, if a person

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1

violates subsection (a)(2), the board shall impose an

2

administrative penalty of three times the amount of the

3

license fee, authorization fee, tax or other assessment

4

evaded and not paid, collected or paid over. This subsection

5

is subject to 2 Pa.C.S. Chs. 5 Subch. A and 7 Subch. A.

6

(d)  Aiding and abetting.--A person who aids, abets,

7

counsels, commands, induces, procures or causes another person

8

to violate a provision of this part shall be subject to all

9

sanctions and penalties, both civil and criminal, provided under

10

this part.

11

(e)  Continuing offenses.--A violation of this part that is

12

determined to be an offense of a continuing nature shall be

13

deemed to be a separate offense on each event or day during

14

which the violation occurs. Nothing in this section shall be

15

construed to preclude the commission of multiple violations of

16

the provisions of this part in any one day that establish

17

offenses consisting of separate and distinct acts or violations

18

of the provisions of this part or regulations promulgated under

19

this part.

20

(f)  Property subject to seizure, confiscation, destruction

21

or forfeiture.--Any equipment, device or apparatus, money,

22

material, gaming proceeds or substituted proceeds or real or

23

personal property used, obtained or received or any attempt to

24

use, obtain or receive the device, apparatus, money, material,

25

proceeds or real or personal property in violation of this part

26

shall be subject to seizure, confiscation, destruction or

27

forfeiture.

28

Section 17.  Title 4 is amended by adding sections to read:

29

§ 1518.1.  Additional authority.

30

(a)  General rule.--The chief enforcement counsel may

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1

petition the Commonwealth Court for authorization to review or

2

obtain information in the possession of an agency in this

3

Commonwealth by averring that the bureau believes specific and 

<--

4

articulable facts demonstrating that the agency has in its

5

possession information material to an a pending investigation or

<--

6

inquiry being conducted by the bureau pursuant to this part and

7

that disclosure or release is in the best interest of the

8

Commonwealth. The petition shall request that the court enter a

9

rule upon the agency to show cause why the agency should not be

10

directed to disclose to the bureau or identified agents thereof,

11

information in its possession about any pending matter under the

<--

12

jurisdiction of the bureau or the board pursuant to this part. 

<--

13

If a respondent is a local agency, a copy of any rule issued

14

pursuant to this section shall be provided to the district

15

attorney of the county in which the local agency is located and

<--

16

to the Office of Attorney General. Upon request of a local

17

agency, the district attorney or the Attorney General may elect

<--

18

to enter an appearance to represent the local agency in the

19

proceedings.

20

(b)  Procedure.--The filing of a petition pursuant to this

21

section and related proceedings shall be in accordance with

22

court rule, including issuance as of course. A party shall not

23

disclose the filing of a petition or answer or receipt, content

<--

24

or disposition of a rule or order issued pursuant to this

25

section without leave of court. Any party to the proceedings may

26

request that the record be sealed and proceedings be closed. The

27

court shall grant the request if it is in the best interest of

28

any person or the Commonwealth to do so.

29

(c)  Court determination.--Following review of the record,

30

the court shall grant the relief sought by the chief enforcement

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1

counsel, if the court determines that the agency has in its

2

possession information material to the investigation or inquiry

3

and that disclosure or release of the information is in the best

4

interest of the Commonwealth, that the disclosure or release of

<--

5

the information is not otherwise prohibited by statute or

6

regulation and that the disclosure or release of the information

7

would not inhibit an agency in the performance of the agency's

8

duties. If the court so determines, the court shall enter an

9

order authorizing and directing the information be made

10

available for review in camera.

11

(d)  Release of materials or information.--If, after an in

12

camera review, the chief enforcement counsel seeks to obtain

13

copies of materials in the agency's possession, the court may,

14

notwithstanding any other provision of law if not otherwise 

<--

15

prohibited by statute or regulation, enter an order that the

16

requested materials be provided. Any order authorizing the

17

release of materials or other information shall contain

18

direction regarding the safekeeping and use of the materials or

19

other information sufficient to satisfy the court that the

20

materials or information will be sufficiently safeguarded. In

21

making this determination the court shall consider the input of

22

the agency concerning any pending investigation or ongoing

<--

23

matter and the safety of persons and property.

24

(e)  Modification of order.--If subsequent investigation or

25

inquiry by the board bureau warrants modification of any order

<--

26

entered pursuant to this section, the chief enforcement counsel

27

may petition to request the modification. Upon such request, the

28

court may modify its orders at any time and in any manner it

29

deems necessary and appropriate. The agency named in the

30

original petition shall be given notice and an opportunity to be

- 224 -

 


1

heard.

2

(f)  Use of information or materials.--Any person who, by any

3

means authorized by this section, has obtained knowledge of

4

information or materials solely pursuant to this section may use

5

such information or materials in a manner consistent with any

6

directions imposed by the court and appropriate to the proper

7

performance of the person's official duties under this part.

8

(g)  Violation.--In addition to any remedies and penalties

9

provided in this part, any violation of the provisions of this

10

section may be punished as contempt of the court.

11

(h)  Definition.--As used in this section the term "agency"

12

shall mean a "Commonwealth agency" or a "local agency" as those

13

terms are defined in section 102 of the act of February 14,

14

2008, (P.L.6, No.3) known as the Right-to-Know Law.

15

§ 1518.2.  Report of suspicious transactions.

16

(a)  Duty.--The holder of any slot machine license or a

17

person acting on behalf of the licensee shall file a report of

18

any suspicious transaction with the bureau. The filing of a

19

report under 31 CFR 103.21 (relating to reports by casinos of

20

suspicious transactions) shall satisfy this requirement.

21

(b)  Failure to report.--A person required under this section

22

to file a report of a suspicious transaction who knowingly fails

23

to file a report of a suspicious transaction or who knowingly

24

causes another person having that responsibility to fail to file

25

a report commits a misdemeanor of the third degree and shall be

26

subject to the sanctions under section 1518(c) (relating to

27

prohibited acts; penalties).

28

(c)  Bureau.--The bureau shall maintain a record of all

29

reports made under this section for a period of five years. The

30

bureau shall make the reports available to any Federal or State

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1

law enforcement agency upon written request and without

2

necessity of subpoena.

3

(d)  Notice prohibited.--A person who is required to file a

4

report of a suspicious transaction under this section may not

5

notify any person involved in the transaction that the

6

transaction has been reported. Any person that violates this

7

subsection commits a misdemeanor of the third degree.

8

(e)  Immunity.--A person who is required to file a report of

9

a suspicious transaction under this section who in good faith

10

makes the report shall not be liable in any civil action brought

11

by any person for making the report, regardless of whether the

12

transaction is later determined to be suspicious.

13

(f)  Sanctions.--

14

(1)  In considering appropriate administrative sanctions

15

against any person under section 1518(c) for a violation of

16

this section, the board shall consider all of the following:

17

(i)  The risk to the public and to the integrity of

18

gaming operations created by the conduct of the person.

19

(ii)  The seriousness of the conduct of the person

20

and whether the conduct was purposeful and with knowledge

21

that it was in contravention of the provisions of this

22

part or regulations promulgated under this part.

23

(iii)  Any justification or excuse for the conduct by

24

the person.

25

(iv)  The prior history of the particular licensee or

26

person involved with respect to gaming activity.

27

(v)  The corrective action taken by the slot machine

28

licensee to prevent future misconduct of a like nature

29

from occurring.

30

(vi)  In the case of a monetary penalty, the amount

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1

of the penalty in relation to the severity of the

2

misconduct and the financial means of the licensee or

3

person. The board may impose any schedule or terms of

4

payment of such penalty as it may deem appropriate.

5

(2)  It shall be no defense to disciplinary action before

6

the board that a person inadvertently, unintentionally or

7

unknowingly violated a provision of this section. The factors

8

under paragraph (1) shall only go to the degree of the

9

penalty to be imposed by the board and not to a finding of a

10

violation itself.

11

(g)  Regulations.--The board shall promulgate regulations to

12

effectuate the purposes of this section.

13

§ 1518.3.  Inapplicability of Liquor Code.

14

The provision of section 471(c) of the act of April 12, 1951

15

(P.L.90, No.21), known as the Liquor Code, shall not apply to a

16

person who holds a slot machine license and who holds a license

17

issued under section 404 or 432 of the Liquor Code.

18

Section 18.  Section 1522 of Title 4 is amended to read:

19

§ 1522.  Interception of oral communications.

20

The interception and recording of oral communications made in

21

a [counting] count room of a licensed facility by a licensee

22

shall not be subject to the provisions of 18 Pa.C.S. Ch. 57 

23

(relating to wiretapping and electronic surveillance). Notice

24

that oral communications are being intercepted and recorded

25

shall be posted conspicuously in the [counting] count room.

26

Section 18.1.  Title 4 is amended by adding a section to

27

read:

28

§ 1523.  Electronic funds transfer terminals.

29

(a)  Prohibition.--A slot machine licensee may not install,

30

own or operate or allow another person to install, own or

- 227 -

 


1

operate on the premises of the licensed facility a slot machine

2

or table game that is played with a device that allows a player

3

to operate the slot machine or table game by transferring funds

4

electronically from a debit card, credit card or by means of an

<--

5

electronic funds transfer terminal.

6

(b)  Definitions.--As used in this section, the following

7

words and phrases shall have the meanings given to them in this

8

subsection unless the context clearly indicates otherwise:

9

"Electronic funds transfer terminal."  An information-

10

processing device or an automatic teller machine used for

11

executing deposit account transactions between financial

12

institutions and their account holders by either the direct

13

transmission of electronic impulses or the recording of

14

electronic impulses for delayed processing. The fact that a

15

device is used for other purposes shall not prevent it from

16

being considered an electronic funds transfer terminal under

17

this definition.

18

Section 18.2.  Title 4 is amended by adding chapters to read:

19

Chapter 16

20

JUNKETS

21

Sec.

22

1601.  Gaming junkets authorized.

23

1602.  Gaming junket enterprise license.

24

1603.  Other licenses Classification system.

<--

25

1604.  Gaming junket representatives.

26

1605.  Junket agreements.

27

1606.  Conduct of junket.

28

1607.  Violation of terms.

29

1608.  Records.

30

1609.  Report.

- 228 -

 


1

1610.  Gaming junket arrangement.

2

1611.  Prohibitions.

3

§ 1601.  Gaming junkets authorized.

4

The board may authorize the organization and conduct of

5

gaming junkets subject to the provisions of this chapter. No

6

gaming junket shall be organized or permitted to operate in this

7

Commonwealth and no person shall act as a junket representative

8

or junket enterprise except in accordance with this chapter.

9

§ 1602.  Gaming junket enterprise license.

10

(a)  Gaming junket enterprise license required.--All gaming

11

junket enterprises shall obtain a license from the board prior

12

to acting as a gaming junket enterprise in this Commonwealth.

13

(b)  Application.-–A gaming junket enterprise license

14

application shall be in a form prescribed by the board and shall

15

include the following:

16

(1)  The name, address and photograph of the applicant

17

all owners, directors, managers and supervisory employees of

18

a gaming junket enterprise.

19

(2)  The details of a gaming junket enterprise license or

20

similar license applied for or granted or denied to the

21

applicant by another jurisdiction.

22

(3)  Consent for the board to conduct a background

23

investigation, the scope of which shall be determined by the

24

board.

25

(4)  All releases necessary for the board to acquire

26

licensing documents and other information necessary to

27

conduct a background investigation or otherwise evaluate the

28

application.

29

(5)  A list of all civil judgments obtained against the

30

applicant pertaining to a gaming junket enterprise with which

- 229 -

 


1

the applicant has been associated.

2

(6)  A description of the operation and organization of

3

the gaming junket enterprise.

4

(7)  Any additional information required by the board.

5

(c)  Enforcement information.-–If the applicant has held a

6

gaming junket license or gaming junket license or other gaming

7

license in another jurisdiction, the applicant may submit a

8

letter of reference from the gaming enforcement agency in the

9

other jurisdiction. The letter shall specify the experiences of

10

the agency with the applicant, the applicant's associates and

11

the applicant's gaming junket enterprise or gaming activity. If

12

no letter is received within 30 days of the applicant's request,

13

the applicant may submit a statement under oath, subject to the

14

penalty for false swearing under 18 Pa.C.S. § 4903 (relating to

15

false swearing), that the applicant is in good standing with the

16

gaming enforcement agency in the other jurisdiction.

17

(d)  Issuance.-–Following review of the application and

18

completion of the background investigation, the board may issue

19

a gaming junket enterprise license to the applicant if the

20

applicant has proven by clear and convincing evidence that the

21

applicant is a person of good character, honesty and integrity

22

and that the applicant’s activities, criminal record,

23

reputation, habits and associations do not pose a threat to the

24

public interest or suitable or legitimate operation of gaming.

25

(e)  Failure to cooperate.-–Failure to provide required

26

information or releases under this section shall result in the

27

immediate denial of a license or permit.

28

(f)  Nontransferability.-–A license issued under this section

29

shall be nontransferable.

30

§ 1603.  Other licenses.

<--

- 230 -

 


1

An owner, director, manager or supervisory employee of a

2

gaming junket enterprise shall qualify for and obtain a key

3

employee license in accordance with section 1311.2 (relating to

4

licensing of key employees) or a principal employee license

5

under section 1311.1 (relating to licensing of principals) as

6

deemed appropriate by the board.

7

§ 1603.  Classification system.

<--

8

The board shall develop a classification system for the

9

regulation of gaming junket enterprises and the individuals and

10

entities associated with gaming junket enterprises.

11

§ 1604.  Gaming junket representatives.

12

(a)  Occupation permit.-–Except as otherwise provided in

13

subsection (e), a gaming junket representative shall obtain an

14

occupation permit from the board in accordance with section 1318

15

(relating to occupation permit application).

16

(b)  Application.-–In addition to the requirements of section

17

1308 (relating to applications for license or permit), the

18

application for a gaming junket representative occupation permit

19

shall be in a form prescribed by the board and shall include the

20

following:

21

(1)  Verification of employment status as a gaming junket

22

representative with a licensed gaming junket enterprise.

23

(2)  A description of employment responsibilities.

24

(3)  A consent form to allow the board to conduct a

25

background investigation, the scope of which shall be

26

determined by the board.

27

(4)  A release for the board to acquire copies of

28

information from government agencies, employers and others as

29

necessary to complete the investigation.

30

(5)  Fingerprints which shall be submitted to the

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1

Pennsylvania State Police.

2

(6)  A photograph that meets the standards of the

3

Commonwealth Photo Imaging Network.

4

(7)  Details relating to a similar license, permit or

5

other authorization obtained in another jurisdiction, if any.

6

(8)  Any additional information required by the board.

7

(c)  Issuance.-–Following review of the application and

8

background investigation, the board may issue an occupation

9

permit if the applicant has proven by clear and convincing

10

evidence that the applicant is a person of good character,

11

honesty and integrity and is eligible and suitable to receive an

12

occupation permit.

13

(d)  Nontransferability.-–An occupation permit issued under

14

this section shall be nontransferable.

15

(e)  Holder of occupation permit.–-Nothing in this section

16

shall be construed to prohibit a gaming junket representative an

<--

17

individual who holds a valid occupation permit and who is

18

employed by a slot machine licensee or an applicant for a slot

<--

19

machine license from acting as a gaming junket representative. A

<--

20

gaming junket representative need not be a resident of this

21

Commonwealth.

22

§ 1605.  Junket agreements.

23

Agreements entered into between a slot machine licensee and a

24

gaming junket enterprise or a gaming junket representative shall

25

include a provision for the termination of the agreement without

26

liability on the part of the slot machine licensee if:

27

(1)  The board orders the suspension, limitation,

28

conditioning, denial or revocation of the license of a gaming

29

junket representative license or occupation permit of a

30

gaming junket representative.

- 232 -

 


1

(2)  The board finds that the agreement is not approved

2

or that it is terminated. Failure to expressly include the

3

termination requirement under this section in the agreement

4

shall not constitute a defense in an action brought relating

5

to the termination of the agreement.

6

§ 1606.  Conduct of junket.

7

A slot machine licensee shall be responsible for the conduct

8

of a gaming junket representative or gaming junket enterprise

9

with which the slot machine licensee has an agreement and for

10

the terms and conditions of a gaming junket on its premises.

11

§ 1607.  Violation of terms.

12

Notwithstanding any other provision of this part, if the

13

board determines that the terms of an agreement to conduct a

14

gaming junket were violated by a slot machine licensee, gaming

15

junket enterprise or gaming junket representative, the board may

16

do the following:

17

(1)  Order restitution to gaming junket patrons.

18

(2)  Assess civil penalties for a violation or deviation

19

from the terms of the junket agreement.

20

§ 1608.  Records.

21

The board shall prescribe procedures and forms to retain

22

records relating to the conduct of a gaming junket by a slot

23

machine licensee. A slot machine licensee shall:

24

(1)  Maintain a report describing the operation of a

25

gaming junket conducted at its licensed facility.

26

(2)  Submit to the board and the bureau a list of all its

27

employees who act as conduct business on behalf of the slot

<--

28

machine licensee with gaming junket representatives on a

29

full-time, part-time or temporary basis.

30

(3)  Maintain records of all agreements entered into with

- 233 -

 


1

a gaming junket enterprise or gaming junket representative

2

for a minimum of five years.

3

(4)  Provide any other information relating to a gaming

4

junket required by the board or bureau.

5

§ 1609.  Report.

6

A slot machine licensee, gaming junket representative or

7

gaming junket enterprise shall file a report with the bureau to

8

include a list of gaming junket patrons or potential gaming

9

junket patrons purchased by the slot machine licensee, gaming

10

junket representative or gaming junket enterprise. The report

11

shall include the source of the list and zip codes of patrons or

12

potential patrons on a list purchased directly or indirectly by

13

a slot machine licensee, gaming junket representative or gaming

14

junket enterprise. Nothing in this section shall require the

15

reporting or maintenance of personal identifying information

16

pertaining to patron or potential patrons.

17

§ 1610.  Gaming junket arrangement.

18

Upon petition by a slot machine licensee, the board may grant

19

an exemption from the requirements of this part to a gaming

20

junket representative. The board shall consult with the bureau

21

prior to granting an exemption under this section and shall

22

consider the following:

23

(1)  The terms of the gaming junket arrangement.

24

(2)  The number and scope of gaming junkets.

25

(3)  Whether the exemption is consistent with the

26

policies and purposes of this part.

27

(4)  Any other factor deemed necessary by the bureau or

28

board.

29

The board may condition, limit or restrict the exemption.

30

§ 1611.  Prohibitions.

- 234 -

 


1

A gaming junket enterprise or gaming junket representative

2

shall not do any of the following:

3

(1)  Engage in efforts to collect on checks that have

4

been returned by a bank or other financial institution

5

without payment.

6

(2)  Exercise approval authority over the authorization

7

or issuance of credit under section 1326A (relating to

8

wagering policies).

9

(3)  Receive or retain a fee from a patron for the

10

privilege of participating in a gaming junket.

11

(4)  Pay for any service, including transportation, or

12

other thing of value provided to a patron participating in a

13

gaming junket except as authorized by this part.

14

CHAPTER 17

15

GAMING SCHOOLS

16

Sec.

17

1701.  Curriculum.

18

1702.  Gaming school gaming equipment.

19

§ 1701.  Curriculum.

20

The Department of Education, in consultation with the board,

21

shall develop curriculum guidelines, including minimum

22

proficiency requirements established by the board, for gaming

23

school instruction. The guidelines shall, at a minimum,

24

establish courses of instruction that will provide individuals

25

with adequate training necessary to obtain employment as a

26

gaming employee with a licensed gaming entity.

27

§ 1702.  Gaming school gaming equipment.

28

(a)  Use of gaming equipment.--All gaming equipment utilized

29

by a gaming school, including table game devices and all

30

representations of value, shall be used for training,

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1

instructional and practice purposes only. The use of any such

2

gaming equipment for actual gaming by any person is prohibited.

3

(b)  Chips.--Unless the board otherwise determines, all

4

gaming chips and other representations of value utilized by a

5

gaming school shall be distinctly dissimilar to any gaming chips

6

and representations of value utilized by a slot machine

7

licensee.

8

(c)  Possession, removal and transport of equipment.--No

9

gaming school shall possess, remove or transport, or cause to be

10

removed or transported, any slot machine, table game device or

11

associated equipment except in accordance with this part.

12

(d)  Serial numbers.--Each slot machine, table game device

13

and associated equipment on the premises of a gaming school

14

shall have permanently affixed on it a serial number which,

15

together with the location of the machine or table game device,

16

shall be filed with the board.

17

(e)  Security.--Each gaming school shall provide adequate

18

security for the slot machines, table games, table game devices

19

and associated equipment on the gaming school premises.

20

(f)  Notice to board and bureau.--No gaming school shall sell

21

or transfer any slot machine, table game, table game device or

22

associated equipment except upon prior written notice to the

23

board and the bureau and the removal of all serial numbers

24

required by this section.

25

(g)  Additional training.--Each gaming employee attending 

<--

26

gaming school shall be trained in cardiopulmonary resuscitation.

27

Section 19.  No later than 90 days after the effective date

28

of this act, the Pennsylvania Gaming Control Board shall

29

transfer the sum of $12,500,000 from the amounts previously

30

appropriated to the Pennsylvania Gaming Control Board pursuant

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1

to 4 Pa.C.S. § 1408 to the General Fund.

2

Section 20.  The amendment of 4 Pa.C.S. § 1213 shall not

3

apply to any of the following:

4

(1)  An application submitted before the effective date

5

of this section.

6

(2)  Any license or permit issued prior to the effective

7

date of this section.

8

(3)  The renewal of any license or permit issued prior to

9

the effective date of this section.

10

Section 20.1.  The amendment of 4 Pa.C.S. § 1202(a)(2) and

<--

11

the addition of 4 Pa.C.S. § 1517(c)(1.1) shall not apply to an

12

individual:

13

(1)  who, on July 1, 2009, was serving officially or

14

acting as Executive Director of the Pennsylvania Gaming

15

Control Board, Chief Counsel of the board, or the Director of

16

the Office Of Enforcement Counsel within the Bureau of

17

Investigations and Enforcement and;

18

(2)  on whom the bureau or the Pennsylvania State Police

19

completed a background investigation as a condition of

20

employment with the board.

21

Section 21.  This act shall take effect immediately.

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