CORRECTIVE REPRINTHOUSE AMENDED

 

PRIOR PRINTER'S NOS. 1196, 1247, 1460, 1464, 1468, 1544

PRINTER'S NO.  1545

  

THE GENERAL ASSEMBLY OF PENNSYLVANIA

  

SENATE BILL

 

No.

711

Session of

2009

  

  

INTRODUCED BY EARLL, MELLOW, FONTANA, WOZNIAK, M. WHITE, 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, DECEMBER 14, 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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28

Statutes, further providing for legislative intent, for

 


1

definitions, for the Pennsylvania Gaming Control Board

2

established, for applicability of other statutes, for powers

3

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

4

of regulatory agencies; further providing for licensed gaming

5

entity application appeals from board, for license or permit

6

application hearing process and public hearings, for board

7

minutes and records, for regulatory authority of board, for

8

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

9

for number of slot machines and for reports of board;

10

providing for report by slot machine licensee; further

11

providing for diversity goals of board and for license or

12

permit prohibition; providing for specific authority to

13

suspend slot machine license and for Auditor General's

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14

reports; further providing for Category 3 slot machine

15

license, for applications for license or permit, for slot

16

machine license application character requirements, for slot

17

machine license application financial fitness requirements,

18

for supplier licenses and for manufacturer licenses;

19

providing for gaming service provider and for alternative

20

supplier licensing standards; further providing for

21

occupation permit application, for additional licenses and

22

permits and approval of agreements, for license renewals, for

23

change in ownership or control of slot machine licensee and

24

for nonportability of slot machine license; providing for

25

appointment of trustee and for additional table game

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26

assessment; authorizing table games; further providing for

27

slot machine license deposits; providing for limitation on

28

recovery of costs; further providing for gross terminal

29

revenue deductions, for itemized budget reporting, for

30

establishment of State Gaming Fund and net slot machine

31

revenue distribution, for distributions from Pennsylvania

32

Race Horse Development Fund, for Pennsylvania Gaming Economic

33

Development and Tourism Fund, for transfers from State Gaming

34

Fund, for responsibility and authority of Department of

35

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

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36

authority,; providing for deteriorated designations; further

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37

providing for compulsive and problem gambling program, for

38

labor hiring preferences, for declaration of exemption from

39

Federal laws prohibiting slot machines and for financial and

40

employment interests; providing for additional restrictions;

41

further providing for political influence, for regulation

42

requiring exclusion of certain persons; providing for

43

prosecutorial and adjudicative functions; further providing

44

for investigations and enforcement, for conduct of public

45

officials and employees and for prohibited acts and

46

penalties; providing for additional authority and for report

47

of suspicious transactions; further providing for

48

interception of oral communications; providing for electronic

49

funds transfer terminals; regulating junkets; and providing

50

for gaming schools.

51

Amending Titles 4 (Amusements) and 64 (Public Authorities and

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1

Quasi-Public Corporations) of the Pennsylvania Consolidated

2

Statutes, making extensive revisions to provisions on gaming,

3

in the areas of legislative intent, definitions, the

4

Pennsylvania Gaming Control Board, applicability of other

5

statutes, powers of the board, code of conduct, expenses of

6

regulatory agencies, licensed gaming entity application

7

appeals from board, license or permit application hearing

8

process and public hearings, board minutes and records,

9

regulatory authority, collection of fees and fines, slot

10

machine license fee, number of slot machines, reports of

11

board, diversity goals of board, license or permit

12

prohibition, specific authority to suspend slot machine

13

license, Category 2 slot machine license, Category 3 slot

14

machine license, number of slot machine licenses,

15

applications for license or permit, slot machine license

16

application, slot machine license application character

17

requirements, supplier licenses, manufacturer licenses,

18

gaming service provider, occupation permit application,

19

alternative manufacturer licensing standards, alternative

20

supplier licensing standards, additional licenses and permits

21

and approval of agreements, license renewals, change in

22

ownership or control of slot machine licensee, nonportability

23

of slot machine license, appointment of trustee, table games,

24

slot machine licensee deposits, gross terminal revenue

25

deductions, itemized budget reporting, establishment of State

26

Gaming Fund and net slot machine revenue distribution,

27

distributions from Pennsylvania Race Horse Development Fund,

28

Pennsylvania Gaming Economic Development and Tourism Fund,

29

transfers from State Gaming Fund, responsibility and

30

authority of Department of Revenue, wagering on credit,

31

eminent domain authority, compulsive and problem gambling

32

program, drug and alcohol treatment, labor hiring

33

preferences, declaration of exemption from Federal laws

34

prohibiting slot machines, financial and employment

35

interests, additional restrictions, political influence,

36

regulation requiring exclusion of certain persons,

37

prosecutorial and adjudicative functions, investigations and

38

enforcement, conduct of public officials and employees,

39

prohibited acts and penalties, report of suspicious

40

transactions, additional authority, applicability of Clean

41

Indoor Air Act, liquor licenses at licensed facilities,

42

interception of oral communications, electronic funds

43

transfer terminals, junkets, gaming schools and

44

appropriations; further providing for powers and duties of

45

the Commonwealth Financing Authority; and making related

46

repeals.

47

The General Assembly of the Commonwealth of Pennsylvania

48

hereby enacts as follows:

49

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

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1

Consolidated Statutes is amended and the section is amended by

2

adding paragraphs to read:

3

§ 1102.  Legislative intent.

4

The General Assembly recognizes the following public policy

5

purposes and declares that the following objectives of the

6

Commonwealth are to be served by this part:

7

* * *

8

(10.1)  The General Assembly has a compelling interest in

9

protecting the integrity of both the electoral process and

10

the legislative process by preventing corruption and the

11

appearance of corruption which may arise through permitting

12

campaign contributions by the gaming industry.

13

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

14

regulatory control and legislative oversight over the

15

operation of slot machines in this Commonwealth; to prevent

16

the actual or appearance of corruption that may result from

17

[large] campaign contributions; ensure the bipartisan

18

administration of this part; and avoid actions that may erode

19

public confidence in the system of representative government.

20

(11.1)  Completely banning political CAMPAIGN

21

contributions by certain individuals and entities subject to

22

this act is necessary to prevent corruption, or the

23

appearance of corruption, that may arise when politics and

24

gaming are intermingled.

25

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

26

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

27

amended and the section is amended by adding definitions to

28

read:

29

§ 1103.  Definitions.

30

The following words and phrases when used in this part shall

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1

have the meanings given to them in this section unless the

2

context clearly indicates otherwise:

3

* * *

4

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

5

contendere, whether or not a judgment of sentence has been

6

imposed as determined by the law of the jurisdiction in which

7

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

8

that has been expunged or overturned or for which an individual

9

has been pardoned or an order of Accelerated Rehabilitative

10

Disposition which has been issued.

11

* * *

12

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

13

the following:

14

(1)  Deputy Secretaries of the Commonwealth and the

15

Governor's Office executive staff.

16

(2)  An employee of the executive branch with

17

discretionary power which may affect or influence the outcome

18

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

19

the development of regulations or policies relating to a

20

licensed entity or who is involved in other matters under

21

this part. The term shall include an employee with law

22

enforcement authority.

23

(3)  An employee of a county or municipality with

24

discretionary powers which may affect or influence the

25

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

26

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

27

policy relating to a licensed entity or who is involved in

28

other matters under this part. The term shall include an

29

employee with law enforcement authority.

30

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

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1

commission, authority or other governmental body not included

2

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

3

may affect or influence the outcome of the governmental

4

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

5

development of regulation or policy relating to a licensed

6

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

7

The term shall include an employee with law enforcement

8

authority.

9

* * *

10

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

11

licensee, manufacturer licensee, supplier licensee or other

12

person licensed by the Pennsylvania Gaming Control Board under

13

this part.

14

"Licensed entity representative."  A person acting on behalf

15

of or representing the interest of any applicant, licensee,

16

permittee or registrant, including an attorney, agent or

17

lobbyist, regarding any matter which may reasonably be expected

18

to come before the board.

19

* * *

20

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

21

license.]

22

* * *

23

"Trustee."  A fiduciary appointed by the Pennsylvania Gaming

24

Control Board to preserve the viability of a licensed facility

25

and the integrity of gaming in this Commonwealth.

26

* * *

27

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

28

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

29

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

30

is amended by adding a subsection to read:

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1

§ 1201.  Pennsylvania Gaming Control Board established.

2

* * *

3

(b)  Membership.--

4

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

5

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

6

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

7

following:

8

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

9

Senate.

10

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

11

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

12

Representatives.

13

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

14

Representatives.

15

(2)  The chairman of the Community, Economic and

16

Recreational Development Committee of the Senate may hold a

17

public hearing on an appointee under paragraph (1).

18

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

19

pleasure of the appointing authority and shall be removed from

20

office by the appointing authority:

21

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

22

conduct evidencing unfitness for office or incompetence; or

23

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

24

infamous crime, an offense under this part or an equivalent

25

offense under Federal law or the law of another jurisdiction.

26

* * *

27

(f)  Qualified majority vote.--

28

* * *

29

(3)  Notwithstanding any other provision of this part or

30

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

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1

member shall disclose the nature of his disqualifying

2

interest, disqualify himself and abstain from voting in a

3

proceeding under this part in which his objectivity,

4

impartiality, integrity or independence of judgment may be

5

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

6

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

7

legislative appointee has disqualified himself, the qualified

8

majority shall consist of all of the remaining legislative

9

appointees and at least two gubernatorial appointees.

10

* * *

11

(h)  Qualifications and restrictions.--

12

* * *

13

(4.1)  No member appointed after the effective date of

14

this paragraph shall engage in any business, employment or

15

vocation for which the member shall receive any COMPENSATION

16

OR remuneration except for an individual who is reappointed

17

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

18

this paragraph.

19

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

20

compensation other than salary and expenses provided by law

21

for any activity related to the duties or authority of the

22

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

23

engaging in any employment or receiving any compensation for

24

such employment that is not connected to or incompatible with

25

his service as a member of the board.]

26

* * *

27

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

28

his immediate family shall divest any financial interest in

29

any applicant, licensed facility or licensed entity and in an

30

affiliate, intermediary, subsidiary or holding company

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1

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

2

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

3

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

4

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

5

financial interest in any applicant, licensed facility or

6

licensed entity or in an affiliate, intermediary, subsidiary

7

or holding company thereof. For purposes of this paragraph,

8

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

9

or unemancipated child.

10

* * *

11

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

12

hearing or proceeding or participate in any other activity on

13

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

14

intermediary, subsidiary or holding company thereof, or any

15

other licensee or permittee for a period of two years from

16

the termination of term of office.

17

(11)  No member, employee or independent contractor of

18

the board shall accept a complimentary service, wager or be

19

paid any prize from any wager at any licensed facility within

20

this Commonwealth or at any other facility outside this

21

Commonwealth which is owned or operated by a licensed gaming

22

entity or any of its affiliates, intermediaries, subsidiaries

23

or holding companies thereof for the duration of their term

24

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

25

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

26

of office, employment or contract with the board. The

27

provisions of this paragraph prohibiting wagering during the

28

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

29

the employees utilize slot machines for testing purposes or

30

to verify the performance of a machine as part of an

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1

enforcement investigation.

2

* * *

3

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

4

an independent contractor of the board] whose duties

5

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

6

development or adoption of laws, regulations or policy or who

7

has other discretionary authority which may affect the

8

outcome of an action or decision under this part, including

9

the executive director, bureau directors and attorneys, shall

10

do any of the following:

11

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

12

by an applicant or licensed entity, or an affiliate,

13

intermediary, subsidiary or holding company thereof, for

14

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

15

the employment relating to the conduct of gaming [or

16

contract with the board; or].

17

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

18

or proceeding or participate in any other activity on

19

behalf of any applicant, licensee, permittee or licensed

20

entity, or an affiliate, intermediary, subsidiary or

21

holding company thereof, for a period of two years after

22

termination of the employment [or contract with the

23

board].

24

(iii)  As a condition of employment, an employee

25

under this paragraph shall sign an affidavit that the

26

employee will not accept employment with or be retained

27

by any applicant, licensed entity or an affiliate,

28

intermediary, subsidiary or holding company thereof for a

29

period of two years from the termination of employment.

30

An applicant or licensed entity or an affiliate,

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1

intermediary, subsidiary or holding company thereof shall

2

not employ or retain an individual who signed an

3

affidavit signed under this subparagraph. An applicant or

4

licensed entity or an affiliate, intermediary, subsidiary

5

or holding company that knowingly employs or retains an

6

individual in violation of this subparagraph shall be

7

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

8

prohibited acts; penalties).

9

(13.1)  No independent contractor or individual employed

10

by an independent contractor of the board whose duties

11

substantially involve consultation relating to licensing,

12

enforcement or the development or adoption of regulations or

13

policy under this part shall:

14

(i)  Accept employment with or be retained by an

15

applicant or a licensed entity or an affiliate,

16

intermediary, subsidiary or holding company thereof for a

17

period of one year after the termination of the contract

18

with the board.

19

(ii)  Appear before the board in any hearing or

20

proceeding or participate in any other activity on behalf

21

of an applicant, licensee, permittee or licensed entity

22

or an affiliate, intermediary, subsidiary or holding

23

company of an applicant, licensee, permittee or licensed

24

entity for a period of two years after termination of the

25

contract with the board.

26

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

27

contractor or individual employed by an independent

28

contractor of the board under this paragraph shall sign

29

an affidavit to not accept employment with or be retained

30

by any applicant, licensed entity or an affiliate,

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1

intermediary, subsidiary or holding company of an

2

applicant, licensed entity or affiliate for a period of

3

one year from the termination of employment. A licensed

4

entity or an affiliate, intermediary, subsidiary or

5

holding company of an applicant, licensed entity or

6

affiliate shall not employ or retain an individual who

7

signed an affidavit signed under this subparagraph. A

8

licensed entity or an affiliate, intermediary, subsidiary

9

or holding company thereof that knowingly employs or

10

retains an individual in violation of this subparagraph

11

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

12

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

13

board, the executive branch of the Commonwealth or a

14

political subdivision or of the agency or political

15

subdivision employing an employee, the State Ethics

16

Commission shall determine whether the individual's duties

17

substantially involve the development or adoption of laws, 

18

regulations or policy, licensing or enforcement under this

19

part or other discretionary authority which may affect the

20

outcome of an action or decision under this part and shall

21

provide a written determination to the employee to include

22

any prohibition under this paragraph. An individual who

23

relies in good faith on a determination under this paragraph

24

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

25

provided that all material facts set forth in the request for

26

a determination are correct.

27

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

28

of the board violates any provision of this section, the

29

appointing authority [or the board may, upon notice and

30

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

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1

appointment or]. A member removed under this paragraph shall

2

be prohibited from future appointment to the board and shall

3

be prohibited from applying for a license or permit, from

4

becoming an independent contractor of the board, or

5

registering as a licensed entity representative for a period

6

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

7

employee or independent contractor of the board violates any

8

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

9

hearing, terminate the employment or contract, and the person

10

shall be ineligible for future [appointment,] employment or

11

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

12

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

13

shall be prohibited from applying for a license or permit,

14

becoming an independent contractor or registering as a

15

licensed entity representative for a period of five years

16

from the date of termination of the employment or contract.

17

* * *

18

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

19

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

20

appointing authority shall make [their initial] appointments

21

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

22

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

23

appointing authority of the required background investigation of

24

the appointee by the Pennsylvania State Police which shall be

25

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

26

any domestic or foreign jurisdiction of a felony, infamous crime

27

or gaming offense shall be appointed to the board.

28

* * *

29

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

30

other fiscal crisis, the Governor implements a system in order

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1

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

2

Commonwealth agency, the board and its employees and all

3

employees of the Department of Revenue, the Pennsylvania State

4

Police and the Office of Attorney General whose duties involve

5

the regulation and oversight of gaming under this part shall not

6

be subject to furlough but shall continue to perform their

7

duties.

8

* * *

9

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

10

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

11

adding paragraphs to read:

12

§ 1202.  General and specific powers.

13

(a)  General powers.--

14

* * *

15

[(4)  The board shall establish a system of

16

classification and compensation of its employees and shall

17

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

18

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

19

as to classification and compensation for its employees and

20

conduct its activities consistent with the practices and

21

procedures of Commonwealth agencies.]

22

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

23

paragraph, the board shall establish a system of

24

classification and compensation of its employees and shall be

25

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

26

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

27

as to classification and compensation for its employees and

28

conduct its activities consistent with the practices and

29

procedures of Commonwealth agencies. The provisions of this

30

paragraph shall apply to employees hired after the effective

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1

date of this paragraph. Nothing in this paragraph shall

2

prevent the board from altering a system, or establishing a

3

new system, of classification or compensation for employees

4

hired prior to the effective date of this section.

5

* * *

6

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

7

power and duty:

8

* * *

9

(7)  To administer oaths, examine witnesses and issue

10

subpoenas compelling the attendance of witnesses or the

11

production of documents and records or other evidence[. The

12

provisions of this paragraph shall apply to designated

13

officers and employees.], or to designate officers or

14

employees to perform these duties.

15

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

16

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

17

or hearing conducted under this part, a person refuses to

18

answer a question or to produce evidence on the grounds that

19

the answer or evidence will expose the person to criminal

20

prosecution, the board may adopt a resolution recommending a

21

grant of immunity that includes the specific question to be

22

posed or information or evidence being sought from the person

23

as follows:

24

(i)  The resolution shall be submitted to the

25

Attorney General for approval or disapproval within 20

26

days of receipt of the resolution. Upon the written

27

approval of the Attorney General, the board may issue an

28

order to compel the person to answer or produce evidence

29

with immunity.

30

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

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1

immunity order provides the answer or evidence, the

2

person shall be immune from criminal prosecution based on

3

the answer or evidence that was the subject of the

4

immunity order.

5

(iii)  The person may be prosecuted for perjury

6

committed in the answer or production of evidence or held

7

in contempt for failing to give an answer or produce

8

evidence in accordance with the order. The answer or

9

evidence shall be admissible only against the person in a

10

criminal investigation, or a trial or other proceeding

11

for perjury or contempt.

12

(iv)  Immunity under this paragraph shall not

13

preclude the use of any other remedy or sanction

14

authorized by law.

15

* * *

16

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

17

permit unless it is satisfied that the applicant has

18

demonstrated by clear and convincing evidence that the

19

applicant is a person of good character, honesty and

20

integrity and is a person whose prior activities, criminal

21

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

22

pose a threat to the public interest or the effective

23

regulation and control of slot machine operations or create

24

or enhance the danger of unsuitable, unfair or illegal

25

practices, methods and activities in the conduct of slot

26

machine operations or the carrying on of the business and

27

financial arrangements incidental thereto.

28

* * *

29

(30)  To promulgate rules and regulations necessary for

30

the administration and enforcement of this part, including

- 16 -

 


1

regulations in cooperation with the Pennsylvania Liquor

2

Control Board and regulations relating to the sale and

3

service of liquor and malt and brewed beverages by licensees.

4

[Except as provided in section 1203 (relating to temporary

5

regulations), regulations] Regulations shall be adopted

6

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

7

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

8

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

9

Review Act.

10

(31)  To collect and post information on its Internet

11

website with sufficient detail to inform the public of the

12

controlling interest or ownership interest of an applicant

13

for a slot machine license or a licensed gaming entity or

14

affiliate, intermediary, subsidiary or holding company

15

thereof. The posting shall include:

16

(i)  The names of all persons with a controlling

17

interest in a publicly traded domestic or foreign

18

corporation, partnership, limited liability company or

19

other legal entity.

20

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

21

equity share or interest with an ownership interest equal

22

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

23

foreign corporation, partnership, limited liability

24

company or other legal entity.

25

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

26

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

27

(iv)  The names of all officers, directors,

28

principals and key employees of a licensed gaming entity.

29

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

30

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

- 17 -

 


1

Commonwealth and the board to operate a licensed facility and

2

ensure compliance with this part.

3

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

4

§ 1202.1.  Code of conduct.

5

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

6

conduct prior to the consideration of any license, permit or

7

registration application. The code of conduct shall supplement

8

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

9

(relating to accountability) and shall provide guidelines

10

applicable to members, employees, independent contractors of the

11

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

12

subsection (e), employees and independent contractors to enable

13

them to avoid any perceived or actual conflict of interest and

14

to promote public confidence in the integrity and impartiality

15

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

16

this section shall include registration of licensed entity

17

representatives under subsection (b) and the restrictions under

18

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

19

(b)  Registration.--

20

(1)  A licensed entity representative shall register with

21

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

22

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

23

of both the licensed entity representative and the [licensed

24

entity] applicant, licensee, permittee or registrant or

25

individual being represented.

26

(2)  A licensed entity representative shall have an

27

[ongoing] affirmative duty to update its registration

28

information on an ongoing basis.

29

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

30

registration list which shall contain the information

- 18 -

 


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

- 19 -

 


1

from an applicant, licensed entity or affiliate, subsidiary,

2

intermediary or holding company of a licensed entity,

3

interested party, permittee or licensed entity

4

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

5

(relating to Pennsylvania Gaming Control Board established),

6

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

7

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

8

personal contributions to and plan or preside over the

9

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

10

name to appear on the letterhead used for fundraising events

11

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

12

position with the nonprofit entity.

13

(7)  Not meet or engage in discussions with any

14

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

15

permittee, [or a] licensed entity representative or person

16

who provides goods, property or services to a slot machine

17

licensee unless the meeting or discussion occurs on the

18

business premises of the board and is recorded in a log

19

maintained for this purpose. The log shall be available for

20

public inspection during the regular business hours of the

21

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

22

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

23

discussion, the names of the participants and the subject

24

matter discussed. The provisions of this paragraph shall not

25

apply to meetings [of the board] to consider matters

26

requiring the physical inspection of the equipment or

27

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

28

location of the licensed facility.

29

(8)  Avoid impropriety and the appearance of impropriety

30

at all times and observe standards and conduct that promote

- 20 -

 


1

public confidence in the oversight of gaming.

2

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

3

relating to the conduct of a member.

4

(c.1)  Prohibitions.--

5

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

6

advising the board on a particular licensing issue or

7

proceeding or employee whose duties relate to licensing and

8

who is advising the board on a particular licensing issue or

9

proceeding shall engage in any ex parte communication with

10

any person.

11

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

12

Enforcement Counsel or an applicant, licensee or permittee in

13

any proceeding shall engage in an ex parte communication with

14

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

15

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

16

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

17

Enforcement Counsel who is involved in a proceeding shall

18

engage in an ex parte communication with a member, an

19

attorney of the Office of Chief Counsel who is advising the

20

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

21

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

22

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

23

a board member, employee or hearing officer shall be recorded

24

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

25

available for public inspection during the regular business

26

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

27

Internet website. The LOG SHALL INCLUDE:

28

(I) The individual recording the ex parte

29

communication. shall include:

30

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

- 21 -

 


1

communication.

2

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

3

names of all individuals involved in the ex parte

4

communication.

5

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

6

ex parte communication.

7

(2)  In addition to documenting an ex parte communication

8

under paragraph (1), notification and an opportunity to

9

respond shall be provided to the following as follows:

10

(i)  A board member or employee shall promptly notify

11

the board and all persons directly affected by the

12

anticipated vote or action of the board of the substance

13

of the communication.

14

(ii)  A hearing officer shall promptly notify the

15

board and all parties to the proceeding before the

16

hearing officer of the substance of the communication.

17

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

18

received or engaged in an ex parte communication shall

19

recuse himself from any hearing or other proceeding

20

related to the ex parte communication if the context and

21

substance of the ex parte communication creates

22

substantial reasonable doubt as to the individual's

23

ability to act objectively, independently or impartially.

24

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

25

elects not to recuse himself based on an ex parte

26

communication shall state his reasons for doing so on the

27

record prior to the commencement of the hearing or

28

proceeding.

29

(iii)  If a legislative appointee recuses himself

30

from any hearing or other proceeding under this section,

- 22 -

 


1

any qualified majority vote required under this part

2

shall consist of all of the remaining legislative

3

appointees and at least two gubernatorial appointees.

4

(iv)  Failure of a hearing officer or employee to

5

recuse himself from a hearing or other proceeding due to

6

receipt of an ex parte communication under this section

7

shall be grounds for appeal to the board of the failure

8

to recuse.

9

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

10

a hearing or other proceeding due to receipt of an ex

11

parte communication under this section shall be grounds

12

for appeal of a decision to a court of competent

13

jurisdiction if the board action being appealed would not

14

have occurred without the participation of the board

15

member who received the ex parte communication.

16

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

17

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

18

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

19

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

20

subsection:

21

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

22

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

23

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

24

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

25

reasonably be expected to come before the board in a contested

26

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

27

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

28

hearing officer of the board, Department of Revenue,

29

Pennsylvania State Police, Attorney General or other law

30

enforcement official prior to the beginning of the proceeding

- 23 -

 


1

solely for the purpose of seeking clarification or correction to

2

evidentiary materials intended for use in the proceedings.

3

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

4

siblings and the spouses of any of those individuals.

5

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

6

of or representing the interest of any applicant, licensee,

7

permittee or registrant, including an attorney, agent or

8

lobbyist, regarding any matter which may reasonably be expected

9

to come before the board.]

10

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

11

§ 1202.2.  Expenses of the Pennsylvania Gaming Control Board.

12

Members and employees of the board shall only be reimbursed

13

for actual and reasonable expenses incurred during the

14

performance of their duties. In order to receive reimbursement

15

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

16

submit a receipt validating the expense incurred.

17

Reimbursements, allowances or other payments in an amount

18

greater than the expenses for which receipts are submitted are

19

prohibited. Receipts and requests for reimbursement shall be

20

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

21

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

22

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

23

and the subsection is amended by adding paragraphs to read:

24

§ 1205.  License or permit application hearing process; public

25

input hearings.

26

* * *

27

(b)  Public input hearing requirement.--

28

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

29

board shall hold at least one public input hearing on the

30

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

- 24 -

 


1

hearing prior to:

2

(i)  Licensing a facility.

3

(ii)  Approving the structural redesign of a licensed

4

facility located in a city of the first class.

5

(2)  All public input hearings [relating to an

6

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

7

shall be held in the municipality where the licensed facility

8

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

9

with the municipality.

10

* * *

11

(4)  In addition to any witnesses scheduled to testify

12

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

13

comment period during which time members of the public may

14

address the board regarding the proposed license or

15

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

16

discretion, may place reasonable time limits on an

17

individual's comments.

18

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

19

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

20

§ 1206.  Board minutes and records.

21

* * *

22

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

23

(1)  The following information submitted by an applicant

24

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

25

machine license application character requirements) or

26

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

27

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

28

or other investigation from any source shall be [considered] 

29

confidential[.] and withheld from public disclosure:

30

(i)  All information relating to good character,

- 25 -

 


1

honesty and integrity, including family, habits,

2

reputation, history of criminal activity, business

3

activities, financial affairs and business, professional

4

and personal associations submitted under section 1310(a)

5

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

6

bureau.

7

(ii)  Nonpublic personal information, including

8

telephone numbers, Social Security numbers, educational

9

records, memberships, medical records, tax returns and

10

declarations, actual or proposed compensation, financial

11

account records, creditworthiness or a financial

12

condition relating to an applicant, licensee or permittee

13

or the immediate family thereof.

14

(iii)  Documents and information relating to

15

proprietary information, trade secrets, patents or

16

exclusive licenses, architectural and engineering plans

17

and information relating to competitive marketing

18

materials and strategies, which may include customer-

19

identifying information or customer prospects for

20

services subject to competition.

21

(iv)  Security information, including risk prevention

22

plans, detection and countermeasures, location of count

23

rooms, emergency management plans, security and

24

surveillance plans, equipment and usage protocols and

25

theft and fraud prevention plans and countermeasures.

26

(v)  Information with respect to which there is a

27

reasonable possibility that public release or inspection

28

of the information would constitute an unwarranted

29

invasion into personal privacy of any individual as

30

determined by the board.

- 26 -

 


1

(vi)  Records of an applicant or licensee not

2

required to be filed with the Securities and Exchange

3

Commission by issuers that either have securities

4

registered under section 12 of the Securities Exchange

5

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

6

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

7

Securities Exchange Act of 1934.

8

(vii)  Records considered nonpublic matters or

9

information by the Securities and Exchange Commission as

10

provided by 17 CFR 200.80 (relating to commission records

11

and information).

12

(viii)  Any financial information deemed confidential

13

by the board upon a showing of good cause by the

14

applicant or licensee.

15

(2)  No claim of confidentiality shall be made regarding

16

any information from a criminal history record check that is

17

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

18

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

19

to noncriminal justice agencies and individuals).

20

(3)  This subsection shall not apply to any information 

21

that is otherwise publicly available in this Commonwealth or

22

another jurisdiction.

23

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

24

to [investigation] investigations and enforcement), the

25

confidential information shall be withheld from public

26

disclosure in whole or in part, except that any confidential 

27

information shall be released upon the lawful order of a

28

court of competent jurisdiction or, with the approval of the

29

Attorney General, to a duly authorized law enforcement agency

30

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

- 27 -

 


1

the extent that such release is requested by an applicant and

2

does not otherwise contain confidential information about

3

another person.

4

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

5

confidentiality from an applicant or licensed entity but may 

6

not require any applicant or licensed entity to waive any

7

confidentiality provided for in this subsection as a

8

condition for the approval of a license or any other action

9

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

10

current or former board member employee or contractor who

11

publicly discloses confidential information in violation of

12

this subsection commits a misdemeanor and shall be

13

administratively disciplined by discharge, suspension,

14

termination of contract or other formal disciplinary action

15

as the board deems appropriate.

16

* * *

17

§ 1207.  Regulatory authority of board.

18

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

19

* * *

20

(4)  Require that each licensed entity provide to the

21

board its audited annual financial statements, with such

22

additional detail as the board from time to time shall

23

require, which information shall be submitted not later than

24

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

25

* * *

26

§ 1208.  Collection of fees and fines.

27

The board has the following powers and duties:

28

(1)  To levy and collect fees from the various

29

applicants, licensees and permittees to fund the operations

30

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

- 28 -

 


1

Gaming Fund as established in section 1403 (relating to

2

establishment of State Gaming Fund and net slot machine

3

revenue distribution) and distributed to the board upon

4

appropriation by the General Assembly. In addition to the

5

fees set forth in sections 1209 (relating to slot machine

6

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

7

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

8

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

9

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

10

renewal of a supplier license. When the renewal period

11

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

12

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

13

(ii)  Manufacturer licensees shall pay a fee of

14

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

15

the annual renewal of a manufacturer license. When the

16

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

17

manufacturer licenses) is three years, the fee shall be

18

$75,000 for the renewal.

19

* * *

20

§ 1209.  Slot machine license fee.

21

* * *

22

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

23

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

24

the board upon good cause consistent with the license

25

requirements as provided for in this part. Slot machine

26

licensees shall be required to update the information in their

27

initial applications annually, and the license of a licensee in

28

good standing shall be updated and renewed annually for two

29

subsequent years following the initial license issuance.

30

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

- 29 -

 


1

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

2

subsection (a) shall be required.

3

* * *

4

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

5

subsection to read:

6

§ 1211.  Reports of board.

7

* * *

8

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

9

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

10

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

11

expenses of employees and members for the preceding month. The

12

list shall identify the nature of the expense and the employee

13

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

14

shall include each expense for which a receipt is submitted to

15

obtain reimbursement. If the expense is directly attributable to

16

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

17

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

18

expenses for the preceding fiscal year shall be posted on the

19

board's Internet website and shall be transmitted to the

20

Appropriations Committee of the Senate, the Community, Economic

21

and Recreational Development Committee of the Senate, the

22

Appropriations Committee of the House of Representatives and the

23

Gaming Oversight Committee of the House of Representatives.

24

* * *

25

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

26

§ 1213.  License or permit prohibition.

27

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

28

part, including principals and key employees,] The board

29

shall be prohibited from granting a principal license or key

30

employee license to a person who has been convicted of a

- 30 -

 


1

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

2

issued a license or permit unless 15 years has elapsed from

3

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

4

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

5

permit to an applicant who has been convicted in any

6

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

7

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

8

prohibited from granting the following:

9

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

10

person who has been convicted of a gambling offense in

11

any jurisdiction that is not classified as a felony

12

unless 15 years has elapsed from the date of the

13

expiration of the sentence for the offense.

14

(ii)  A gaming employee permit or license other than

15

a principal license or key employee license to a person

16

who has been convicted of a felony or gambling offense in

17

any jurisdiction unless 15 years has elapsed from the

18

date of the expiration of the sentence for the offense.

19

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

20

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

21

factors:

22

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

23

position with the licensed entity.

24

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

25

or conduct.

26

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

27

offense or conduct occurred.

28

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

29

or conduct was committed.

30

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

- 31 -

 


1

isolated or a repeated incident.

2

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

3

good conduct in the community, counseling or psychiatric

4

treatment received and the recommendation of persons who

5

have substantial contact with the applicant.

6

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

7

subsection to read:

8

§ 1308.  Applications for license or permit.

9

* * *

10

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

11

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

12

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

13

under this part shall include all arrests and convictions of the

14

applicant, including summary offenses. The information shall

15

include:

16

(1)  A brief description of the circumstances surrounding

17

the arrest.

18

(2)  The specific offense charged.

19

(3)  The ultimate disposition of the charges, including

20

the details of any dismissal, plea bargain, conviction or

21

sentence, including any pardon, expungement or order of

22

Accelerated Rehabilitative Disposition.

23

* * *

24

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

25

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

26

Title 4 are amended to read:

27

§ 1310.  Slot machine license application character

28

requirements.

29

(a)  Application.--

30

(1)  Every application for a slot machine license shall

- 32 -

 


1

include such information, documentation and assurances as may

2

be required to establish by clear and convincing evidence the

3

applicant's suitability, including good character, honesty

4

and integrity. Information shall include, without limitation,

5

information pertaining to family, habits, character,

6

reputation, criminal history background, business activities,

7

financial affairs and business, professional and personal

8

associates, covering at least the ten-year period immediately

9

preceding the filing date of the application.

10

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

11

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

12

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

13

pardoned or an order of Accelerated Rehabilitative

14

Disposition has been issued, shall be included with an

15

application and shall be considered by the board as part of

16

the review of the applicant's suitability under paragraph

17

(1).

18

(b)  Civil judgments and law enforcement agency

19

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

20

judgments obtained against the applicant pertaining to antitrust

21

or security regulation laws of the Federal Government, this

22

Commonwealth or any other state, jurisdiction, province or

23

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

24

reference from law enforcement agencies having jurisdiction in

25

the applicant's place of residence and principal place of

26

business, which letter of reference shall indicate that the law

27

enforcement agencies do not have any pertinent information

28

concerning the applicant or, if the law enforcement agency does

29

have information pertaining to the applicant, shall specify the

30

nature and content of that information. If no letters are

- 33 -

 


1

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

2

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

3

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

4

that the applicant is or was during the period the activities

5

were conducted in good standing with the gaming or casino

6

enforcement or control agency.

7

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

8

applicant has held a gaming license in a jurisdiction where

9

gaming activities are permitted, the applicant shall produce a

10

letter of reference from the gaming or casino enforcement or

11

control agency which shall specify the experiences of that

12

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

13

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

14

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

15

under oath which is subject to the penalty for false swearing

16

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

17

period the activities were conducted in good standing with the

18

gaming or casino enforcement or control agency.

19

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

20

license, principal license or key employee license shall be

21

required to apply to the Federal Government regarding agency

22

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

23

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

24

board with the complete record received from the Federal

25

Government. The board may issue a conditional license to the

26

applicant prior to the receipt of information under this

27

subsection.

28

§ 1317.  Supplier licenses.

29

* * *

30

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

- 34 -

 


1

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

2

approve the application and issue the applicant a supplier

3

license consistent with all of the following:

4

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

5

expiration, the license may be renewed in accordance with

6

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

7

one year and shall be subject to renewal annually under

8

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

9

the initial issuance. Thereafter, a license shall be subject

10

to renewal every three years. Nothing in this paragraph shall

11

relieve the licensee of the affirmative duty to notify the

12

board of changes to any information contained in the original

13

application.

14

* * *

15

§ 1317.1.  Manufacturer licenses.

16

* * *

17

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

18

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

19

approve the application and grant the applicant a manufacturer

20

license consistent with all of the following:

21

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

22

expiration, a license may be renewed in accordance with

23

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

24

one year and shall be subject to renewal annually under

25

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

26

the initial issuance. Thereafter, a license shall be subject

27

to renewal every three years. Nothing in this paragraph shall

28

relieve the licensee of the affirmative duty to notify the

29

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

30

relieve the licensee of its responsibility to notify the

- 35 -

 


1

board of changes to any information contained in the original

2

application.

3

* * *

4

§ 1321.  Additional licenses and permits and approval of

5

agreements.

6

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

7

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

8

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

9

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

10

person who satisfies any of the following criteria:

11

* * *

12

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

13

be licensed or permitted under this part and provides any

14

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

15

management contracts for compensation to a slot machine

16

licensee at the licensed facility. The board may by

17

regulation establish a classification system for a person who

18

provides goods, property or services to a slot machine

19

licensee. If the classification system requires the person

20

providing goods, property or services to submit to a criminal

21

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

22

criminal history record information), the board shall notify

23

the slot machine licensee if the person providing goods,

24

property or services has been convicted of a felony or

25

gambling offense.

26

* * *

27

§ 1326.  License renewals.

28

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

29

part unless otherwise provided shall be subject to renewal on an

30

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

- 36 -

 


1

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

2

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

3

following the initial issuance. Thereafter, all permits and

4

licenses shall be subject to renewal every three years. The

5

application for renewal shall be submitted at least 60 days

6

prior to the expiration of the permit or license and shall 

7

include an update of the information contained in the initial

8

and any prior renewal applications and the payment of any

9

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

10

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

11

received by the board will continue in effect unless and until

12

the board sends written notification to the holder of the permit

13

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

14

or license.

15

* * *

16

§ 1328.  Change in ownership or control of slot machine

17

licensee.

18

* * *

19

(a)  Notification and approval.--

20

(1)  A slot machine licensee shall notify the board

21

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

22

or contemplated change of ownership of the slot machine

23

licensee by a person or group of persons acting in concert

24

which involves any of the following:

25

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

26

securities or other ownership interests.

27

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

28

ownership interests of a corporation or other form of

29

business entity that owns directly or indirectly at least

30

20% of the voting or other securities or other ownership

- 37 -

 


1

interests of the licensee.

2

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

3

business of a licensee's assets.

4

(iv)  Any other transaction or occurrence deemed by

5

the board to be relevant to license qualifications.

6

* * *

7

(b)  Qualification of purchaser of slot machine licensee;

8

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

9

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

10

slot machine licensee shall independently qualify for a license

11

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

12

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

13

A change in control of any slot machine licensee shall require

14

that the slot machine licensee independently qualify for a

15

license in accordance with this part, and the slot machine

16

licensee shall pay a new license fee as required by section

17

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

18

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

19

upon the assignment and actual change of control or ownership of

20

the slot machine license.

21

* * *

22

§ 1329.  [Nonportability] Portability and relocation of slot

23

machine license.

24

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

25

valid for the specific physical location within the municipality

26

and county for which it was originally granted.

27

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

28

board shall consider the following factors:

29

(1)  The reason for the relocation.

30

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

- 38 -

 


1

detailing estimated gross terminal revenues at the new

2

location with estimated gross terminal revenues at the

3

original location.

4

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

5

detailing the economic impact of the licensed facility at the

6

new location with the estimated economic impact at the

7

original location. The comparative analysis shall include the

8

total cost of the project and projected direct and indirect

9

employment figures.

10

(4)  A comprehensive traffic study commissioned by the

11

board.

12

(5)  Community support or opposition.

13

(6)  Any other information requested by the board.

14

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

15

permitted to move or relocate the physical location of the

16

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

17

cause shown if:

18

(1)  the relocated licensed facility remains within the

19

same county as originally licensed;

20

(2)  the relocation will facilitate the timely operation

21

of slot machines;

22

(3)  the relocated licensed facility complies with all

23

other provisions of this part related to the siting and

24

location of a licensed facility; and

25

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

26

interests of the Commonwealth.

27

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

28

public input hearing in the municipality where the licensed

29

facility will be located prior to approval of the relocation.

30

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

- 39 -

 


1

for the purpose of relocating or developing the relocated

2

licensed facility to comply with any conditions of approval of

3

the relocation.

4

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

5

§ 1332.  Appointment of trustee.

6

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

7

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

8

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

9

interests of the Commonwealth and the board to assure compliance

10

with this part and any conditions imposed upon the slot machine

11

license in the following circumstances:

12

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

13

slot machine license or a principal license of an individual

14

who the board has determined controls a slot machine license

15

if the principal licensee is the only principal who exercises

16

operational control of the licensed facility.

17

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

18

a principal license of an individual who the board has

19

determined controls a slot machine licensee if the principal

20

licensee is the only principal who exercises operational

21

control of the licensed facility until the slot machine or

22

principal license is renewed or until the discontinuation of

23

the trusteeship pursuant to subsection (i).

24

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

25

Commonwealth.

26

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

27

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

28

license. The board may appoint a trustee and award the

29

trustee a temporary principal license as prescribed in board

30

regulations.

- 40 -

 


1

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

2

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

3

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

4

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

5

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

6

licensee.

7

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

8

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

9

powers and perform those duties expressly conferred upon the

10

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

11

shall set forth the powers, duties and responsibilities of the

12

trustees which may include:

13

(1)  Maintaining and operating the licensed facility in a

14

manner that complies with this part and any conditions

15

imposed by the board.

16

(2)  Maintaining and operating the licensed facility

17

consistent with the measures generally taken in the ordinary

18

course of business including:

19

(i)  Entering into contracts.

20

(ii)  Borrowing money.

21

(iii)  Pledging, mortgaging or otherwise encumbering

22

the licensed facility or property thereof as security for

23

the repayment of the trustee's loans subject to any

24

provisions and restrictions in any existing credit

25

documents.

26

(iv)  Hiring, firing and disciplining employees.

27

(3)  Exercising the rights and obligations of the former

28

or suspended licensee.

29

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

30

machine licensee, including its books, records and papers.

- 41 -

 


1

(5)  Establishing accounts with financial institutions.

2

An account may not be established with a financial

3

institution in which an affiliate of the former or suspended

4

licensee, or in which the trustee, has a financial

5

controlling interest.

6

(6)  Meeting with the former or suspended licensee.

7

(7)  Meeting with principals and key employees at the

8

licensed facility.

9

(8)  Meeting with the independent audit committee.

10

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

11

keeping the board's executive director apprised of actions

12

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

13

(10)  Hiring legal counsel, accountants or other

14

consultants or assistants, with prior approval of the board,

15

as necessary to carry out the trustee's duties and

16

responsibilities.

17

(11)  Settling or compromising with any debtor or

18

creditor of the former or suspended licensee, including any

19

taxing authority.

20

(12)  Reviewing outstanding agreements to which the

21

former or suspended licensee is a party and advising the

22

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

23

subject of scrutiny, examination or investigation by the

24

board.

25

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

26

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

27

restructuring, transfer of assets or execution of a contract

28

or any other action taken outside of the ordinary course of

29

business.

30

(14)  Obtaining board approval for any payments outside

- 42 -

 


1

of those made in the ordinary course of business.

2

Notwithstanding any provision contained in this subsection to

3

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

4

preserve the assets of the licensed entity.

5

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

6

compensation of the trustee and shall review and approve actual

7

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

8

accountants or other consultants or assistants hired by the

9

trustee and other persons the board may appoint in connection

10

with the trusteeship action. The compensation, costs and

11

expenses shall be paid by the former or suspended licensee.

12

Total compensation for the trustee and all individuals hired or

13

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

14

exceed $600 per hour in the aggregate.

15

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

16

the administration of the trusteeship with the board in the form

17

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

18

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

19

creditors or other parties in interest and make summaries of the

20

reports available to the public and shall post them on the

21

board's Internet website.

22

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

23

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

24

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

25

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

26

in accordance with board regulations. The petition must set

27

forth in detail the pertinent facts and the reasons why the

28

facts constitute the alleged breach. The board will review any

29

petition filed under this section and take whatever action, if

30

any, it deems appropriate.

- 43 -

 


1

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

2

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

3

machine licensee may not exercise any of its privileges, collect

4

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

5

of its property to anyone without prior approval of the

6

appointed trustee and the board.

7

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

8

of trusteeship, net earnings income shall be deposited in an

9

escrow account maintained for that purpose. Payment of net

10

earnings income during the period of trusteeship may not be made

11

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

12

suspended or former principal or slot machine licensee may

13

request payment distribution of all or a portion of the net

14

earnings income during the period of trusteeship by filing a

15

petition in accordance with board regulation. The suspended or

16

former principal or slot machine licensee shall have the burden

17

of demonstrating good cause for the payment distribution of the

18

net earnings income requested.

19

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

20

discontinue a trusteeship when:

21

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

22

trustee was appointed no longer exists.

23

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

24

board, consummated the sale, assignment, conveyance or other

25

disposition of all the property or interest of the former

26

principal or slot machine licensee relating to the slot

27

machine license.

28

Upon board approval of the discontinuation of the trusteeship,

29

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

30

of the former or suspended principal or slot machine licensee.

- 44 -

 


1

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

2

regulations to establish a list of persons approved by the board

3

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

4

shall provide for the following:

5

(1)  The minimum qualifications an individual must

6

possess to be approved as a trustee, which shall include

7

possession of a principal license.

8

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

9

list.

10

(3)  Any other information the board deems necessary to

11

carry out the intent of this section.

12

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

13

subsections to read:

14

§ 1407.  Pennsylvania Gaming Economic Development and Tourism

15

Fund.

16

* * *

17

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

18

with the Department of Community and Economic Development shall

19

submit an annual report of all distribution of funds under this

20

section to the chairman and minority chairman of the

21

Appropriations Committee of the Senate, the chairman and

22

minority chairman of the Community, Economic and Recreational

23

Development Committee of the Senate, the chairman and minority

24

chairman of the Appropriations Committee of the House of

25

Representatives and the chairman and minority chairman of the

26

Gaming Oversight Committee of the House of Representatives. The

27

report shall include detailed information relating to transfers

28

made from the Pennsylvania Gaming Economic Development and

29

Tourism Fund and all reimbursements, distributions and payments

30

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

- 45 -

 


1

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

2

Tourism Fund Capital Budget Itemization Act of 2007. The report

3

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

4

each year thereafter.

5

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

6

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

7

convention center authority, professional hockey franchise

8

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

9

urban redevelopment authority, airport authority or other entity

10

that receives money from the fund pursuant to an Economic

11

Development Capital Budget under this section subsection (b) or

12

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

13

Gaming Economic Development and Tourism Fund Capital Budget

14

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

15

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

16

Appropriations Committee of the Senate, the chairman and

17

minority chairman of the Community, Economic and Recreational

18

Development Committee of the Senate, the chairman and minority

19

chairman of the Appropriations Committee of the House of

20

Representatives and the chairman and the minority chairman of

21

the Gaming Oversight Committee of the House of Representatives.

22

The report shall include detailed information, including records

23

of expenditures, payments and other distributions made from

24

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

25

include information on all funds received prior to January 31,

26

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

27

January 31 of each year thereafter until all funds under this

28

section are distributed or received. An entity that receives

29

funds after the effective date of this section shall submit an

30

initial report by January 31 of the year following receipt of

- 46 -

 


1

the funds.

2

(g)  Distribution to international airport.--Notwithstanding

3

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

4

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

5

Development and Tourism Fund Capital Budget Itemization Act of

6

2007, following the distribution of $42.5 million of funds

7

allocated to the county for debt service and economic

8

development projects for an international airport in a county of

9

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

10

remaining funds shall be distributed directly to an authority

11

that operates an international airport in a county of the second

12

class.

13

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

14

4 are amended to read:

15

§ 1408.  Transfers from State Gaming Fund.

16

* * *

17

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

18

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

19

the purpose of issuing grants to local law enforcement agencies

20

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

21

all forms of unlawful gambling in this Commonwealth. For

22

purposes of this subsection, the term "local law enforcement

23

agency" shall include Pennsylvania State Police activities in a

24

municipality which does not have a municipal police department

25

for activities in that municipality.

26

* * *

27

§ 1512.  Financial and employment interests.

28

* * *

29

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

30

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

- 47 -

 


1

government positions that meet the definitions of "public

2

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

3

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

4

Administration shall assist the [Ethics Commission] commission 

5

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

6

Pennsylvania Bulletin biennially and on the board's website.

7

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

8

the [Ethics Commission] commission with adequate information to

9

accurately develop and maintain the list. The [Ethics

10

Commission] commission may impose a civil penalty under 65

11

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

12

official or executive-level public employee who fails to

13

cooperate with the [Ethics Commission] commission under this

14

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

15

published by the commission shall not be subject to any penalty

16

for a violation of this section.

17

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

18

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

19

subsection:

20

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

21

the following:

22

(1)  Deputy Secretaries of the Commonwealth and the

23

Governor's Office executive staff.

24

(2)  An employee of the Executive Branch with

25

discretionary power which may affect or influence the outcome

26

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

27

the development of regulations or policies relating to a

28

licensed entity or who is involved in other matters under

29

this part. The term shall include an employee with law

30

enforcement authority.

- 48 -

 


1

(3)  An employee of a county or municipality with

2

discretionary powers which may affect or influence the

3

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

4

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

5

policy relating to a licensed entity or who is involved in

6

other matters under this part. The term shall include an

7

employee with law enforcement authority.

8

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

9

commission, authority or other governmental body not included

10

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

11

may affect or influence the outcome of the governmental

12

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

13

development of regulation or policy relating to a licensed

14

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

15

The term shall include an employee with law enforcement

16

authority.]

17

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

18

hold, debt or equity securities or other ownership interest or

19

profits interest. A financial interest shall not include any

20

debt or equity security, or other ownership interest or profits

21

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

22

following:

23

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

24

employee, public official, party officer or immediate family

25

member thereof may not exercise any managerial control or

26

receive income during the tenure of office and the period

27

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

28

apply only to blind trusts established prior to the effective

29

date of this paragraph.

30

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

- 49 -

 


1

sharing plan, individual retirement account, tax-sheltered

2

annuity, a plan established pursuant to section 457 of the

3

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

4

1 et seq.) or any successor provision deferred compensation

5

plan whether qualified or not qualified under the Internal

6

Revenue Code of 1986 or any successor provision or other

7

retirement plan that:

8

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

9

(ii)  is advised by an independent investment adviser

10

who has sole authority to make investment decisions with

11

respect to contributions made by the individual to these

12

plans.

13

(3)  A tuition account plan organized and operated

14

pursuant to section 529 of the Internal Revenue Code of 1986

15

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

16

directed by the individual.

17

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

18

fund in a licensed entity does not constitute a controlling

19

interest as defined in this part.

20

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

21

child.

22

"Law enforcement authority."  The power to conduct

23

investigations of or to make arrests for criminal offenses.

24

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

25

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

26

State committee or member of the executive committee of a State

27

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

28

or treasurer of a county committee in which a licensed facility

29

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

30

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

- 50 -

 


1

licensed facility is located.

2

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

3

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

4

Governor's cabinet, Treasurer, Auditor General and Attorney

5

General of the Commonwealth.

6

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

7

of the Commonwealth.

8

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

9

a county or municipality that directly receives a

10

distribution of revenue under this part.

11

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

12

agency, board, commission, authority or other governmental

13

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

14

receives a distribution of revenue under this part.

15

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

16

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

17

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

18

(3) with discretionary power which may influence or affect

19

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

20

the development of regulation or policy relating to a

21

licensed entity or who is involved in other matters under

22

this part.

23

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

24

individual who held an uncompensated office with a governmental

25

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

26

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

27

advisory board or commission which makes recommendations

28

relating to a licensed facility.

29

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

30

§ 1516.1.  Prosecutorial and adjudicatory functions.

- 51 -

 


1

The board shall adopt regulations and procedures necessary to

2

ensure that the Bureau of Investigations and Enforcement is a

3

distinct administrative entity and to prevent commingling of the

4

investigatory and prosecutorial functions of the Bureau of

5

Investigations and Enforcement under section 1517 (relating to

6

investigations and enforcement) and the adjudicatory functions

7

of the board.

8

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

9

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

10

subparagraphs and subsection (c) is amended by adding a

11

paragraph to read:

12

§ 1517.  Investigations and enforcement.

13

* * *

14

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

15

Investigations and Enforcement shall have the following powers

16

and duties:

17

* * *

18

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

19

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

20

review may include the review of accounting, administrative

21

and financial records, management control systems, procedures

22

and other records utilized by a licensed entity.

23

* * *

24

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

25

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

26

Enforcement Counsel which shall act as the prosecutor in all

27

noncriminal enforcement actions initiated by the bureau under

28

this part and shall have the following powers and duties:

29

* * *

30

(iv)  Petition the board for the appointment of a

- 52 -

 


1

trustee under section 1332 (relating to appointment of

2

trustee).

3

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

4

immunity of witnesses), the Commonwealth Court may grant

5

an immunity order, in the course of an investigation or

6

hearing conducted under this part, a person refuses to

7

answer a question or to produce evidence on the grounds

8

that the answer or evidence will expose the person to

9

criminal prosecution. The chief enforcement counsel of

10

the bureau may petition the Commonwealth Court for a

11

grant of immunity that includes the specific question to

12

be posed or information or evidence being sought from the

13

person as follows:

14

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

15

the Attorney General and the district attorney of the

16

person's county of residence who may object to the

17

petition.

18

(B)  The court shall hold an in camera proceeding

19

with the person to hear the evidence that will be

20

offered if the order to produce evidence is granted.

21

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

22

person to answer or produce evidence with immunity

23

if:

24

(I)  the testimony or other information from

25

a witness may be necessary to the public

26

interest; and

27

(II)  a witness has refused or is likely to

28

refuse to testify or provide other information on

29

the basis of his privilege against self-

30

incrimination.

- 53 -

 


1

(D)  The court shall grant or deny the request

2

for immunity within 45 days of the filing of the

3

request.

4

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

5

immunity order provides the answer or evidence, the

6

person shall be immune from criminal prosecution

7

based on the answer or evidence that was the subject

8

of the immunity order.

9

(F)  The person may be prosecuted for perjury

10

committed in the answer or production of evidence or

11

held in contempt for failing to give an answer or

12

produce evidence in accordance with the order. The

13

answer or evidence shall be admissible against the

14

person only in a criminal investigation, or a trial

15

or other proceeding for perjury or contempt.

16

(G)  Immunity under this paragraph shall not

17

preclude the use of any other remedy or sanction

18

authorized by law.

19

* * *

20

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

21

Pennsylvania State Police shall have the following powers and

22

duties:

23

* * *

24

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

25

Pennsylvania State Police shall submit a report to the

26

Appropriations Committee of the Senate, the Community,

27

Economic and Recreational Development Committee of the

28

Senate, the Appropriations Committee of the House of

29

Representatives and the Gaming Oversight Committee of the

30

House of Representatives. The report shall summarize law

- 54 -

 


1

enforcement activities at each licensed facility during the

2

previous calendar year and shall include all of the

3

following:

4

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

5

(ii)  A list of specific offenses charged for each

6

offense.

7

(iii)  The number of criminal prosecutions resulting

8

from arrests.

9

(iv)  The number of convictions resulting from

10

prosecutions.

11

(v)  The number of Pennsylvania State Police troopers

12

assigned to each licensed facility and to the gaming unit

13

at the Pennsylvania State Police headquarters.

14

(vi)  The number and nature of disciplinary actions

15

taken and complaints made against Pennsylvania State

16

Police troopers in a licensed facility.

17

(vii)  The closest local police station, Pennsylvania

18

State Police station and regional Pennsylvania State

19

Police headquarters to each licensed facility.

20

* * *

21

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

22

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

23

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

24

representing the bureau or the Office of Enforcement Counsel, or

25

an employee of the bureau or office involved in the hearing

26

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

27

officer, chief counsel or member] (Reserved).

28

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

29

counsel or a member shall not discuss or exercise any

30

supervisory responsibility over any employee with respect to an

- 55 -

 


1

enforcement hearing with which the employee is involved] 

2

(Reserved).

3

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

4

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

5

any enforcement proceeding, the chief counsel or member shall be

6

prohibited from participating in the adjudication of that matter

7

and shall designate appropriate individuals to exercise

8

adjudicatory functions.

9

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

10

apply to any of the following:

11

(1)  An application submitted before the effective date

12

of this section.

13

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

14

date of this section.

15

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

16

the effective date of this section.

17

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

18

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

<--

19

Consolidated Statutes is amended and the section is amended by

20

adding paragraphs to read:

21

§ 1102.  Legislative intent.

22

The General Assembly recognizes the following public policy

23

purposes and declares that the following objectives of the

24

Commonwealth are to be served by this part:

25

* * *

26

(2.1)  The legalization of table games as authorized in

27

this part is intended to supplement slot machine gaming by

28

increasing revenues to the Commonwealth and providing new

29

employment opportunities by creating skilled jobs for

30

individuals related to the conduct of table games at licensed

- 56 -

 


1

facilities in this Commonwealth.

2

* * *

3

(10.1)  The General Assembly has a compelling interest in

4

protecting the integrity of both the electoral process and

5

the legislative process by preventing corruption and the

6

appearance of corruption which may arise through permitting

7

campaign contributions by the gaming industry.

8

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

9

regulatory control and legislative oversight over the

10

operation of slot machines and table games in this

11

Commonwealth; to prevent the actual or appearance of

12

corruption that may result from [large] campaign

13

contributions; ensure the bipartisan administration of this

14

part; and avoid actions that may erode public confidence in

15

the system of representative government.

16

(11.1)  Completely banning campaign contributions by

17

certain individuals and entities subject to this act is

18

necessary to prevent corruption, or the appearance of

19

corruption, that may arise when politics and gaming are

20

intermingled.

21

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

22

authorize the operation of slot machines and table games

23

under a single slot machine license issued to a slot machine

24

licensee under this part.

25

Section 2.  The definitions of "associated equipment,"

26

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

27

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

28

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

29

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

30

is amended by adding definitions to read:

- 57 -

 


1

§ 1103.  Definitions.

2

The following words and phrases when used in this part shall

3

have the meanings given to them in this section unless the

4

context clearly indicates otherwise:

5

* * *

6

"Associated equipment."  Any equipment or mechanical,

7

electromechanical or electronic contrivance, component or

8

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

9

games, including linking devices which connect to progressive

10

slot machines or slot machines, replacement parts, equipment

11

which affects the proper reporting and counting of gross

12

terminal revenue and gross table game revenue, computerized

13

systems for controlling and monitoring slot machines or table

14

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

15

computer to which all slot machines communicate and devices for

16

weighing or counting money.

17

* * *

18

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

19

against a certificate holder rather than against one another.

20

* * *

21

"Cash."  United States currency and coin.

22

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

23

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

24

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

25

(2)  Travelers checks.

26

(3)  Foreign currency and coin.

27

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

28

(5)  Personal checks or drafts.

29

(6)  A negotiable instrument applied against credit

30

extended by a certificate holder, a recognized credit card

- 58 -

 


1

company or a financial institution.

2

(7)  Any other instrument that the Pennsylvania Gaming 

3

Control Board deems a cash equivalent. Other than recognized 

4

credit cards or credit extended by a certificate holder, all

5

instruments that constitute a cash equivalent shall be made

6

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

7

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

8

be considered a cash equivalent and shall be prohibited.

9

* * *

10

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

11

table games operation certificate from the Pennsylvania Gaming

12

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

13

games).

14

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

15

from any patron, slot machine licensee or the Commonwealth,

16

including causing, aiding, abetting or conspiring with another

17

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

18

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

19

which determine:

20

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

21

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

22

game or table game.

23

(3)  The value of a wagering instrument.

24

(4)  The value of a wagering credit.

25

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

26

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

27

or repair with the approval of a slot machine licensee.

28

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

29

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

30

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

- 59 -

 


1

include any device used to alter slot machines or table game

2

devices without the approval of a slot machine licensee.

3

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

4

by and redeemable with the issuing certificate holder for use in

5

playing a table game at the certificate holder's licensed

6

facility.

7

* * *

8

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

9

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

10

approved by the Pennsylvania Gaming Control Board at a licensed

11

facility.

12

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

13

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

14

or players are required to pay consideration to participate in

15

the competition.

16

* * *

17

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

18

contendere, whether or not a judgment of sentence has been

19

imposed as determined by the law of the jurisdiction in which

20

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

21

that has been expunged or overturned or for which an individual

22

has been pardoned or had an order of Accelerated Rehabilitative

23

Disposition entered.

24

* * *

25

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

26

designated for counting, wrapping and recording a slot machine

27

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

28

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

29

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

30

certificate holder's licensed facility.

- 60 -

 


1

* * *

2

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

3

by the Pennsylvania Gaming Control Board, is a mechanical,

4

electrical or computerized contrivance, terminal, machine or

5

other device approved by the Pennsylvania Gaming Control Board

6

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

7

object therein or upon payment of any consideration whatsoever,

8

including the use of any electronic payment system, is playable

9

or operable without either the required assistance of or

10

required interaction with a gaming employee. The term does not

11

include a slot machine.

12

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

13

the following:

14

(1)  Deputy Secretaries of the Commonwealth and the

15

Governor's Office executive staff.

16

(2)  An employee of the executive branch with

17

discretionary power which may affect or influence the outcome

18

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

19

the development of regulations or policies relating to a

20

licensed entity or who is involved in other matters under

21

this part. The term shall include an employee with law

22

enforcement authority.

23

(3)  An employee of a county or municipality with

24

discretionary powers which may affect or influence the

25

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

26

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

27

policy relating to a licensed entity or who is involved in

28

other matters under this part. The term shall include an

29

employee with law enforcement authority.

30

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

- 61 -

 


1

commission, authority or other governmental body not included

2

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

3

may affect or influence the outcome of the governmental

4

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

5

development of regulation or policy relating to a licensed

6

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

7

The term shall include an employee with law enforcement

8

authority.

9

* * *

10

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

11

including, but not limited to:

12

(1)  Cashiers.

13

(2)  Change personnel.

14

(3)  [Counting] Count room personnel.

15

(4)  Slot attendants.

16

(5)  Hosts or other persons authorized to extend

17

complimentary services.

18

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

19

or table game device technicians.

20

(7)  Security personnel.

21

(8)  Surveillance personnel.

22

(9)  Supervisors and managers.

23

(10)  Boxmen.

24

(11)  Dealers or croupiers.

25

(12)  Floormen.

26

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

27

license whose duties are directly involved with the repair or

28

distribution of slot machines, table game devices and associated

29

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

30

this Commonwealth as determined by the Pennsylvania Gaming

- 62 -

 


1

Control Board. The term does not include bartenders, cocktail

2

servers or other persons engaged solely in preparing or serving

3

food or beverages, clerical or secretarial personnel, parking

4

attendants, janitorial, stage, sound and light technicians and

5

other nongaming personnel as determined by the board.

6

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

7

representative for an individual who is all of the following:

8

(1)  Selected or approved for participation in the

9

arrangement based on the individual's ability to satisfy

10

specific financial qualifications.

11

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

12

licensed facility for the purpose of gaming.

13

(3)  Receives as consideration for participation in the

14

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

15

lodging or entertainment which are directly or indirectly

16

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

17

a slot machine licensee.

18

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

19

machine licensee, who employs or otherwise engages the services

20

of a gaming junket representative to arrange gaming junkets to a

21

license facility, regardless of whether the activities of the

22

gaming junket enterprise occur within this Commonwealth.

23

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

24

employee of a slot machine licensee who arranges and negotiates

25

the terms of a gaming junket or selects individuals to

26

participate in a gaming junket to a licensed facility,

27

regardless of whether the activities of the gaming junket

28

enterprise occur within this Commonwealth.

29

"Gaming school."  Any educational institution which is

30

approved by the the Department of Education as an accredited

- 63 -

 


1

college or university, community college, Pennsylvania private

2

licensed school or its equivalent and which is approved by the

3

Pennsylvania Gaming Control Board in consultation with the

4

Department of Education to provide education and training

5

related to employment opportunities associated with slot

6

machines or table games, including slot machine, table game 

7

device and associated equipment maintenance and repair.

8

"Gaming service provider."  A person that:

<--

9

(1)  provides goods or services to a slot machine

10

licensee or an applicant for a slot machine license;

11

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

12

and

13

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

14

manufacturer designee, supplier, management company or gaming

15

junket enterprise.

16

"Gross table game revenue."  The total of:

17

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

18

a table game minus the total of:

19

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

20

a result of playing a table game.

21

(ii)  Cash paid to purchase annuities to fund prizes

22

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

23

playing a table game.

24

(iii)  The actual cost paid by the certificate holder

25

for any personal property distributed to a patron as a

26

result of playing a table game. This does not include

27

travel expenses, food, refreshments, lodging or services.

28

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

29

game contest or tournament fees shall be calculated as all

30

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

- 64 -

 


1

administrative fees, imposed by a certificate holder to

2

participate in a table game contest or tournament less cash

3

or actual cost paid by a certificate holder for prizes

4

awarded to tournament or contest winners.

5

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

6

certificate holder each day.

7

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

8

currency of other countries received in the playing of a table

9

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

10

United States currency; cash taken in a fraudulent act

11

perpetrated against a certificate holder for which the

12

certificate holder is not reimbursed.

13

* * *

14

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

15

certificate holder which is attached to, physically connected to

16

or adjacent to the certificate holder's licensed facility at

17

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

18

same parcel of land as the licensed facility.

19

* * *

20

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

21

or department head capacity and who is empowered to make

22

discretionary decisions that regulate slot machine or table game

23

operations, including the general manager and assistant manager

24

of the licensed facility, director of slot operations, director

25

of table games, pit supervisors, shift supervisors, credit

26

supervisors, cashier supervisors, table game managers and

27

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

28

director of surveillance, director of marketing, director of

29

management information systems, director of security,

30

comptroller and any employee who supervises the operations of

- 65 -

 


1

these departments or to whom these department directors or

2

department heads report and such other positions which the

3

Pennsylvania Gaming Control Board shall determine based on

4

detailed analyses of job descriptions as provided in the

5

internal controls of the licensee as approved by the

6

Pennsylvania Gaming Control Board. All other gaming employees

7

unless otherwise designated by the Pennsylvania Gaming Control

8

Board shall be classified as non-key employees.

9

* * *

10

"Licensed entity representative."  A person acting on behalf

11

of or authorized to represent the interest of any applicant,

12

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

13

regarding any matter which may reasonably be expected to come

14

before the board.

15

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

16

which a licensed gaming entity is authorized to place and

17

operate slot machines and, if authorized by the Pennsylvania

18

Gaming Control Board under Chapter 13A (relating to table

19

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

20

licensed racetrack previously authorized pursuant to section

21

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

22

slot machines and any area of a hotel which the Pennsylvania

23

Gaming Control Board determines is suitable to conduct table

24

games.

25

* * *

26

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

27

fabricates, assembles, produces, programs, designs or otherwise

28

makes modifications to any slot machine, table game device or

29

associated equipment for use or play of slot machines or table 

30

games in this Commonwealth for gaming purposes.

- 66 -

 


1

"Manufacturer license."  A license issued by the Pennsylvania

2

Gaming Control Board authorizing a manufacturer to manufacture

3

or produce slot machines, table game devices or associated

4

equipment for use in this Commonwealth for gaming purposes.

5

* * *

6

"Municipal authority."  A body politic and corporate created

7

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

8

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

9

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

10

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

11

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

12

* * *

13

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

14

against one another and in which the certificate holder collects

15

a rake.

16

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

17

determined by the Pennsylvania Gaming Control Board, is not an

18

electronic table game.

19

* * *

20

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

21

of Investigations and Enforcement of the Pennsylvania Gaming

22

Control Board or any applicant, licensee, permittee, registrant

23

or other person appearing of record in any proceeding before the

24

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

25

decision or order of the board.

26

* * *

27

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

28

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

29

for playing any nonbanking game.

30

* * *

- 67 -

 


1

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

2

computerized contrivance, terminal, machine or other device

3

approved by the Pennsylvania Gaming Control Board which, upon

4

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

5

therein or upon payment of any consideration whatsoever,

6

including the use of any electronic payment system except a

7

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

8

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

9

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

10

entitle the person or persons playing or operating the

11

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

12

billets, tickets, tokens or electronic credits to be exchanged

13

for cash or to receive merchandise or anything of value

14

whatsoever, whether the payoff is made automatically from the

15

machine or manually. A slot machine:

16

(1)  May utilize spinning reels or video displays or

17

both.

18

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

19

winning patrons.

20

(3)  May use an electronic credit system for receiving

21

wagers and making payouts.

22

The term shall include associated equipment necessary to conduct

23

the operation of the contrivance, terminal, machine or other

24

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

25

* * *

26

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

27

provides, distributes or services any slot machine, table game

28

device or associated equipment for use or play of slot machines

29

or table games in this Commonwealth.

30

"Supplier license."  A license issued by the Pennsylvania

- 68 -

 


1

Gaming Control Board authorizing a supplier to provide products

2

or services related to slot machines, table games devices or

3

associated equipment to slot machine licensees.

4

* * *

5

"Suspicious transaction."  The acceptance or redeeming of

6

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

7

slot machine licensee or person knows or has reason to believe

8

the transaction:

9

(1)  involves funds derived from illegal activities or is

10

intended or conducted in order to conceal or disguise funds

11

or assets derived from illegal activities;

12

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

13

regulation or to avoid any transaction reporting requirement

14

under the law or regulations of this Commonwealth or the

15

United States, including a plan to structure a series of

16

transactions to avoid any transaction reporting requirement

17

under the laws or regulations of this Commonwealth or the

18

United States; or

19

(3)  has no lawful business or other apparent lawful

20

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

21

would normally be expected to engage and the slot machine

22

licensee or person knows of no reasonable explanation for the

23

transaction after examining the available facts, including

24

the background and possible purpose of the transaction.

25

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

26

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

27

equivalent or any representation of value. The term includes

28

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

29

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

30

nonbanking or percentage game approved by the Pennsylvania

- 69 -

 


1

Gaming Control Board. The term shall also include any game

2

authorized for use in a licensed facility that is used for

3

gaming contests or tournaments in which players compete against

4

one another. The term shall not include:

5

(1)  Lottery games of the Pennsylvania State Lottery as

6

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

7

known as the State Lottery Law.

8

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

9

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

10

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

11

or harness horse racing as authorized under the act of

12

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

13

Industry Reform Act.

14

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

15

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

16

Option Small Games of Chance Act.

17

(5)  Slot machine gaming and progressive slot machine

18

gaming as defined and authorized under this part.

19

(6)  Keno.

20

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

21

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

22

mechanical, electrical or computerized contrivance, terminal,

23

machine or other device, apparatus, equipment or supplies

24

approved by the Pennsylvania Gaming Control Board and used to

25

conduct a table game.

26

"Table game operation certificate."  A certificate from the

27

Pennsylvania Gaming Control Board that authorizes a slot machine

28

licensee to conduct table games in accordance with this part.

29

"Tournament."  An organized series of table game contests

30

approved by the Pennsylvania Gaming Control Board.

- 70 -

 


1

"Trustee."  A person appointed by the Pennsylvania Gaming

2

Control Board to manage and control the operations of a licensed

3

facility to ensure compliance with this part and who has the

4

fiduciary responsibility to make decisions for the benefit of

5

the licensed gaming entity and the Commonwealth.

6

* * *

7

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

8

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

<--

9

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

10

by adding a subsection subsections to read:

<--

11

§ 1201.  Pennsylvania Gaming Control Board established.

12

* * *

13

(f)  Qualified majority vote.--

14

* * *

15

(3)  Notwithstanding any other provision of this part or

16

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

17

member shall disclose the nature of his disqualifying

18

interest, disqualify himself and abstain from voting in a

19

proceeding under this part in which his objectivity,

20

impartiality, integrity or independence of judgment may be

21

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

22

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

23

legislative appointee has disqualified himself, the qualified

24

majority shall consist of all of the remaining legislative

25

appointees and at least two gubernatorial appointees.

26

* * *

27

(h)  Qualifications and restrictions.--

28

* * *

29

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

30

his immediate family shall divest any financial interest in

- 71 -

 


1

any applicant, licensed facility or licensed entity and in an

2

affiliate, intermediary, subsidiary or holding company

3

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

4

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

5

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

6

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

7

financial interest in any applicant, licensed facility or

8

licensed entity or in an affiliate, intermediary, subsidiary

9

or holding company thereof. For purposes of this paragraph,

10

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

11

or unemancipated child.

12

* * *

13

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

14

hearing or proceeding or participate in any other activity on

15

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

16

intermediary, subsidiary or holding company thereof, or any

17

other licensee or permittee for a period of two years from

18

the termination of term of office.

19

(11)  No member, employee or independent contractor of

20

the board shall accept a complimentary service, wager or be

21

paid any prize from any wager at any licensed facility within

22

this Commonwealth or at any other facility outside this

23

Commonwealth which is owned or operated by a licensed gaming

24

entity or any of its affiliates, intermediaries, subsidiaries

25

or holding companies thereof for the duration of their term

26

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

27

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

28

of office, employment or contract with the board. The

29

provisions of this paragraph prohibiting wagering during the

30

term of employment shall not apply to employees or

- 72 -

 


1

independent contractors of the board who utilize slot

2

machines or table game devices for testing purposes or to

3

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

4

an 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, or the development or

10

adoption of regulations or policy or who has other

11

discretionary authority which may affect the outcome of an

12

action or decision under this part, including the executive

13

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

14

following:

15

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

16

licensed entity, or an affiliate, intermediary,

17

subsidiary or holding company thereof, for a period of

18

[one year] two years after the termination of the

19

employment relating to the conduct of gaming [or contract

20

with the board; or].

21

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

22

or proceeding or participate in any other activity on

23

behalf of any applicant, licensee, permittee or licensed

24

entity, or an affiliate, intermediary, subsidiary or

25

holding company thereof, for a period of two years after

26

termination of the employment [or contract with the

27

board].

28

(iii)  As a condition of employment, an employee

29

subject to this paragraph shall sign an affidavit that

30

the employee will not accept employment with or be

- 73 -

 


1

retained by any applicant, licensed entity or an

2

affiliate, intermediary, subsidiary or holding company

3

thereof for a period of two years from the termination of

4

employment. An applicant or licensed entity or an

5

affiliate, intermediary, subsidiary or holding company

6

thereof shall not employ or retain an individual who

7

signed an affidavit required by this subparagraph. An

8

applicant or licensed entity or an affiliate,

9

intermediary, subsidiary or holding company that

10

knowingly employs or retains an individual in violation

11

of this subparagraph shall be subject to a penalty under

12

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

13

(13.1)  Nothing shall prevent a current or former

14

employee of the board from appearing in any proceeding as a

15

witness where the employee is called to testify concerning

16

any fact or information obtained while employed with the

17

board or related to the performance of duties while so

18

employed.

19

(13.2)  No independent contractor or individual employed

20

by an independent contractor of the board whose duties

21

substantially involve consultation relating to licensing,

22

enforcement or the development or adoption of regulations or

23

policy under this part shall:

24

(i)  Accept employment with or be retained by an

25

applicant or a licensed entity or an affiliate,

26

intermediary, subsidiary or holding company thereof for a

27

period of one year after the termination of the contract

28

with the board.

29

(ii)  Appear before the board in any hearing or

30

proceeding or participate in any other activity on behalf

- 74 -

 


1

of an applicant, licensee, permittee or licensed entity

2

or an affiliate, intermediary, subsidiary or holding

3

company of an applicant, licensee, permittee or licensed

4

entity for a period of two years after termination of the

5

contract with the board. Nothing shall prevent a current

6

or former independent contractor or employee of an

7

independent contractor of the board from appearing in any

8

proceeding as a witness where the independent contractor

9

or employee of the independent contractor is being called

10

to testify concerning any fact or information obtained

11

while contracting with the board or related to the

12

performance of the contract.

13

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

14

contractor or individual employed by an independent

15

contractor of the board under this paragraph shall sign

16

an affidavit to not accept employment with or be retained

17

by any applicant, licensed entity or an affiliate,

18

intermediary, subsidiary or holding company of an

19

applicant, licensed entity or affiliate for a period of

20

one year from the termination of employment. A licensed

21

entity or an affiliate, intermediary, subsidiary or

22

holding company of an applicant, licensed entity or

23

affiliate shall not employ or retain an individual who

24

signed an affidavit required by this subparagraph. A

25

licensed entity or an affiliate, intermediary, subsidiary

26

or holding company thereof that knowingly employs or

27

retains an individual in violation of this subparagraph

28

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

29

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

30

board, the executive branch of the Commonwealth or a

- 75 -

 


1

political subdivision or of the agency or political

2

subdivision employing an employee, the State Ethics

3

Commission shall determine whether the individual's duties

4

substantially involve the development [or adoption] of laws,

5

or the development or adoption of regulations or policy,

6

licensing or enforcement under this part or other

7

discretionary authority which may affect the outcome of an

8

action, proceeding or decision under this part and shall

9

provide a written determination to the employee or the agency

10

or political subdivision employing the employee to include

11

any prohibition under this paragraph. An individual who

12

relies in good faith on a determination under this paragraph

13

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

14

provided that all material facts set forth in the request for

15

a determination are correct.

16

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

17

of the board violates any provision of this section, the

18

appointing authority [or the board may, upon notice and

19

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

20

appointment or]. A member removed under this paragraph shall

21

be prohibited from future appointment to the board and shall

22

be prohibited from applying for a license, permit or other

23

authorization and from becoming an independent contractor of

24

the board, or registering as a licensed entity representative

25

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

26

board. If an employee or independent contractor of the board

27

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

28

notice and hearing, terminate the employment or contract, and

29

the person shall be ineligible for future [appointment,]

30

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

- 76 -

 


1

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

2

of two years thereafter] shall be prohibited from applying

3

for a license, permit or other authorization and from

4

becoming an independent contractor or registering as a

5

licensed entity representative for a period of five years

6

from the date of termination of the employment or contract.

7

* * *

<--

8

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

9

of the Senate or House of Representatives shall be eligible for

10

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

11

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

12

thereafter.

13

(i)  Compensation.--

<--

14

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

15

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

16

Code of 1929, shall establish the compensation of the

17

members.]

18

(i)  Members, including members serving on the

19

effective date of this subparagraph, shall receive an

20

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

21

receive an annual salary of $71,084.

22

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

23

living adjustment consistent with the provisions of

24

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

25

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

26

* * *

27

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

28

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

29

appointing authority shall make [their initial] appointments

30

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

- 77 -

 


1

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

2

appointing authority of the required background investigation of

3

the appointee by the Pennsylvania State Police which shall be

4

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

5

any domestic or foreign jurisdiction of a felony, infamous crime

6

or gaming offense shall be appointed to the board.

7

* * *

8

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

9

other fiscal crisis, the Governor orders the furlough of

10

Commonwealth employees or the closing of any Commonwealth

11

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

12

Department of Revenue, the Pennsylvania State Police and the

13

Office of Attorney General whose duties involve the regulation

14

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

15

furlough but shall continue to perform their duties of

16

employment.

17

* * *

18

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

19

read:

20

§ 1201.1.  Applicability of other statutes.

21

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

22

board:

23

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

24

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

25

Right-to-Know Law.

26

* * *

27

Section 4.  Section 1202(a)(1) and (2) and (b)(7), (20), (23)

<--

28

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

29

adding paragraphs to read:

30

§ 1202.  General and specific powers.

- 78 -

 


1

(a)  General powers.--

2

(1)  The board shall have general and sole regulatory

3

authority over the conduct of gaming or related activities as

4

described in this part. The board shall ensure the integrity

5

of the acquisition and operation of slot machines, table

6

games, table game devices and associated equipment and shall

7

have sole regulatory authority over every aspect of the

8

authorization and operation of slot machines and table games.

9

(2)  The board shall employ individuals as necessary to

<--

10

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

11

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

12

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

13

XXV (relating to retirement for State employees and

14

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

15

shall not be considered an executive or independent agency

16

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

17

the Commonwealth Attorneys Act. The board shall not take

18

final action in filling the positions of executive director

19

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

20

board or director of the Office of Enforcement Counsel until

21

receipt and review of the results of the background

22

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

23

investigations and enforcement).

24

* * *

25

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

26

power and duty:

27

* * *

28

(7)  To administer oaths, examine witnesses and issue

29

subpoenas compelling the attendance of witnesses or the

30

production of documents and records or other evidence[. The

- 79 -

 


1

provisions of this paragraph shall apply to designated

2

officers and employees.], or to designate officers or

3

employees to perform these duties.

4

* * *

5

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

6

suspend, condition or deny issuance or renewal of a table

7

game operation certificate to a slot machine licensee in

8

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

9

* * *

10

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

11

license and permit applicants, to determine at its discretion

12

the suitability of any person who furnishes or seeks to

13

furnish to a slot machine licensee directly or indirectly any

14

goods, services or property related to slot machines, table

15

games or associated equipment or through any arrangements

16

under which that person receives payment based directly or

17

indirectly on earnings, profits or receipts from the slot

18

machines, table games and associated equipment. The board may

19

require any such person to comply with the requirements of

20

this part and the regulations of the board and may prohibit

21

the person from furnishing the services or property.

22

* * *

23

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

24

license, certificate or permit unless it is satisfied that

25

the applicant has demonstrated by clear and convincing

26

evidence that the applicant is a person of good character,

27

honesty and integrity and is a person whose prior activities,

28

criminal record, if any, reputation, habits and associations

29

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

30

regulation and control of slot machine or table game 

- 80 -

 


1

operations or create or enhance the danger of unsuitable,

2

unfair or illegal practices, methods and activities in the

3

conduct of slot machine or table game operations or the

4

carrying on of the business and financial arrangements

5

incidental thereto.

6

* * *

7

(27.1)  To publish each January in the Pennsylvania

8

Bulletin and on the Pennsylvania Gaming Control Board's

9

Internet website a complete list of all slot machine

10

licensees who filed a petition seeking authorization to

11

conduct table games and the status of each petition or table

12

game operation certificate.

13

* * *

14

(30)  To promulgate rules and regulations necessary for

15

the administration and enforcement of this part, including

16

regulations in cooperation with the Pennsylvania Liquor

17

Control Board and regulations relating to the sale and

18

service of liquor and malt and brewed beverages by licensees.

19

[Except as provided in section 1203 (relating to temporary

20

regulations), regulations] Regulations shall be adopted

21

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

22

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

23

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

24

Review Act.

25

(31)  To collect and post information on its Internet

26

website with sufficient detail to inform the public of the

27

controlling interest or ownership interest of an applicant

28

for a slot machine license or a licensed gaming entity or

29

affiliate, intermediary, subsidiary or holding company

30

thereof. The posting shall include:

- 81 -

 


1

(i)  The names of all persons with a controlling

2

interest in a publicly traded domestic or foreign

3

corporation, partnership, limited liability company or

4

other legal entity.

5

(ii)  The names of all persons with an ownership

6

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

7

domestic or foreign corporation, partnership, limited

8

liability company or other legal entity.

9

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

10

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

11

(iv)  The names of all officers, directors,

12

principals and key employees of a licensed gaming entity.

13

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

14

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

15

Commonwealth and the board to operate a licensed facility and

16

ensure compliance with this part.

17

(33)  To develop regulations, in consultation and

18

collaboration with the State Ethics Commission and the

19

Administrative Office of the Pennsylvania Courts, to govern

20

the postemployment limitations and restrictions of employees

21

of the board who are members of the Pennsylvania Bar and

22

whose duties with the board substantially involve the

23

practice of law.

24

(34)  To review detailed site plans identifying a

25

petitioner's proposed table game area within a licensed

26

facility or any proposed temporary facility to determine the

27

adequacy of the proposed internal and external security and

28

proposed surveillance measures.

29

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

30

§ 1202.1.  Code of conduct.

- 82 -

 


1

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

2

conduct prior to the consideration of any license, permit or

3

registration application. The code of conduct shall supplement

4

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

5

(relating to accountability) and shall provide guidelines

6

applicable to members, employees, independent contractors of the

7

board and the immediate [families] family members of the

8

members, employees and independent contractors of the board to

9

enable them to avoid any perceived or actual conflict of

10

interest and to promote public confidence in the integrity and

11

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

12

adopted under this section shall include registration of

13

licensed entity representatives under subsection (b) and the

14

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

15

(b)  Registration.--

16

(1)  A licensed entity representative shall register with

17

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

18

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

19

business telephone number of both the licensed entity

20

representative and [the] any licensed entity or applicant for

21

licensed entity licensure being represented.

22

(2)  A licensed entity representative shall have an

23

[ongoing] affirmative duty to update its registration

24

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

25

punishable by the board.

26

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

27

registration list which shall contain the information

28

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

29

public inspection at the offices of the board and on the

30

board's Internet website.

- 83 -

 


1

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

2

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

3

person.

4

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

5

compensation, travel, lodging or other thing of value,

6

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

7

licensed entity, including any affiliate, subsidiary,

8

intermediary or holding company thereof, permittee[,

9

registrant] or licensed entity representative thereof.

10

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

11

hearing or other proceeding in which the member's

12

objectivity, impartiality, integrity or independence of

13

judgment may be reasonably questioned due to the member's

14

relationship or association with a party connected to any

15

hearing or proceeding or a person appearing before the board.

16

(4)  Refrain from any financial or business dealing which

17

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

18

impartiality or independence of judgment.

19

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

20

office in any political party or political committee as

21

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

22

contribute to or solicit contributions to a political

23

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

24

candidate, publicly endorse a candidate or actively

25

participate in a political campaign.

26

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

27

religious, health, fraternal, civic or other nonprofit entity

28

from an applicant, licensed entity or affiliate, subsidiary,

29

intermediary or holding company of a licensed entity,

30

interested party, permittee or licensed entity

- 84 -

 


1

representative. A board member may serve as an officer,

2

employee or member of the governing body of a nonprofit

3

entity and may attend, make personal contributions to and

4

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

5

member may permit his name to appear on the letterhead used

6

for fundraising events if the letterhead contains only the

7

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

8

(7)  Not meet or engage in discussions with any

9

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

10

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

11

provides goods, property or services to a slot machine

12

licensee or any other person or entity under the jurisdiction

13

of the board unless the meeting or discussion occurs on the

14

business premises of the board and is recorded in a log

15

maintained for this purpose. The log shall be available for

16

public inspection during the regular business hours of the

17

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

18

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

19

discussion, the names of the participants and a description

20

of the subject matter discussed. The provisions of this

21

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

22

consider matters requiring the physical inspection of the

23

equipment or premises of an applicant or a licensed entity at

24

[their] the location of the licensed facility.

25

(8)  Avoid impropriety and the appearance of impropriety

26

at all times and observe standards and conduct that promote

27

public confidence in the oversight of gaming.

28

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

29

relating to the conduct of a member.

30

(c.1)  Prohibitions.--

- 85 -

 


1

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

2

advising the board on a particular licensing issue or

3

proceeding or employee whose duties relate to licensing and

4

who is advising the board on a particular licensing issue or

5

proceeding shall engage in any ex parte communication with

6

any person.

7

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

8

Enforcement Counsel or an applicant, licensee or permittee in

9

any proceeding shall engage in an ex parte communication with

10

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

11

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

12

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

13

Enforcement Counsel who is involved in a proceeding shall

14

engage in an ex parte communication with a member, an

15

attorney of the Office of Chief Counsel who is advising the

16

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

17

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

18

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

19

a board member, employee or hearing officer shall be recorded

20

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

21

available for public inspection during the regular business

22

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

23

Internet website. The log shall include:

24

(i)  The name of the individual documenting the ex

25

parte communication.

26

(ii)  The date and time of the ex parte

27

communication.

28

(iii)  The names of all individuals involved in the

29

ex parte communication.

30

(iv)  A description of the subject matter discussed

- 86 -

 


1

and a summary of the substance of the ex parte

2

communication.

3

(2)  In addition to documenting an ex parte communication

4

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

5

communication and an opportunity to respond shall be provided

6

to all persons directly affected by the anticipated vote or

7

action of the board related to the ex parte communication.

8

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

9

engaged in or received an ex parte communication shall

10

recuse himself from any hearing or other proceeding

11

related to the ex parte communication if the context and

12

substance of the ex parte communication creates

13

substantial reasonable doubt as to the individual's

14

ability to act objectively, independently or impartially.

15

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

16

engaged in or received an ex parte communication who

17

elects not to recuse himself from a hearing or other

18

proceeding shall state his reasons for not recusing

19

himself on the record prior to the commencement of the

20

hearing or proceeding.

21

(iii)  If a legislative appointee recuses himself

22

from any hearing or other proceeding under this section,

23

any qualified majority vote required under this part

24

shall consist of all of the remaining legislative

25

appointees and at least two gubernatorial appointees.

26

(iv)  Failure of a hearing officer or employee who

27

engaged in or received an ex parte communication to

28

recuse himself when required under subparagraph (i) from

29

a hearing or other proceeding shall be grounds for appeal

30

to the board.

- 87 -

 


1

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

2

received an ex parte communication to recuse himself from

3

a hearing or other proceeding when required under

4

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

5

of competent jurisdiction if the board action being

6

appealed could not have occurred without the

7

participation of the board member.

8

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

9

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

10

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

11

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

12

subsection:

13

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

14

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

15

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

16

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

17

reasonably be expected to come before the board in a contested

18

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

19

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

20

hearing officer of the board, Department of Revenue,

21

Pennsylvania State Police, Attorney General or other law

22

enforcement official prior to the beginning of the proceeding

23

solely for the purpose of seeking clarification or correction to

24

evidentiary materials intended for use in the proceedings.

25

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

26

siblings.

27

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

28

of or representing the interest of any applicant, licensee,

29

permittee or registrant, including an attorney, agent or

30

lobbyist, regarding any matter which may reasonably be expected

- 88 -

 


1

to come before the board.]

2

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

3

§ 1202.2.  Expenses of regulatory agencies.

4

Members and employees of the board and employees of the

5

department, the Attorney General and the Pennsylvania State

6

Police whose duties substantially involve the regulation of

7

gaming or enforcement under this part and employees of the

8

Auditor General whose duties involve financial audit activities

9

of the board shall only be reimbursed for actual and reasonable

10

expenses incurred during the performance of their duties under

11

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

12

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

13

department, Attorney General, Auditor General or Pennsylvania

14

State Police shall submit a receipt validating the expense

15

incurred. Reimbursements, allowances or other payments in an

16

amount greater than the expenses for which receipts are

17

submitted are prohibited. Receipts and requests for 

<--

18

reimbursement shall be financial records for purposes of the act

19

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

20

Law. Information provided to the board under this subsection may

<--

21

be redacted by the provider of the information.

22

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

23

§ 1204.  Licensed gaming entity application appeals from board.

24

The Supreme Court of Pennsylvania shall be vested with

25

exclusive appellate jurisdiction to consider appeals of any

26

final order, determination or decision of the board involving

27

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

28

license or table game operation certificate. Notwithstanding the

29

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

30

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

- 89 -

 


1

(relating to direct appeals from government agencies), the

2

Supreme Court shall affirm all final orders, determinations or

3

decisions of the board involving the approval, issuance, denial

4

or conditioning of a slot machine license or table game

5

operation certificate unless it shall find that the board

6

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

7

decision of the board was arbitrary and there was a capricious

8

disregard of the evidence.

9

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

10

amended and the subsection is amended by adding a paragraph to

11

read:

12

§ 1205.  License or permit application hearing process; public

13

input hearings.

14

* * *

15

(b)  Public input hearing requirement.--

16

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

17

board shall hold at least one public input hearing on the

18

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

19

hearing prior to:

20

(i)  Issuing or renewing a slot machine license.

21

(ii)  Approving the structural redesign of any

22

licensed facility, including a licensed facility located

23

in a city of the first class.

24

(2)  All public input hearings [relating to an

25

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

26

shall be held in the municipality where the licensed facility

27

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

28

with the municipality.

29

* * *

30

(4)  In addition to any witnesses scheduled to testify

- 90 -

 


1

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

2

comment period during which time members of the public may

3

address the board regarding the proposed license or

4

structural redesign of a licensed facility under paragraph

5

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

6

limits on an individual's comments.

7

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

8

§ 1206.  Board minutes and records.

9

* * *

10

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

11

(1)  The following information submitted by an applicant

12

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

13

machine license application character requirements) or

14

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

15

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

16

or other investigation from any source shall be [considered]

17

confidential[.] and withheld from public disclosure:

18

(i)  All information relating to good character,

19

honesty and integrity, including family, habits,

20

reputation, history of criminal activity, business

21

activities, financial affairs and business, professional

22

and personal associations submitted under section 1310(a)

23

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

24

bureau.

25

(ii)  Nonpublic personal information, including

26

telephone numbers, Social Security numbers, educational

27

records, memberships, medical records, tax returns and

28

declarations, actual or proposed compensation, financial

29

account records, creditworthiness or a financial

30

condition relating to an applicant, licensee or permittee

- 91 -

 


1

or the immediate family thereof.

2

(iii)  Documents and information relating to

3

proprietary information, trade secrets, patents or

4

exclusive licenses, architectural and engineering plans

5

and information relating to competitive marketing

6

materials and strategies, which may include customer-

7

identifying information or customer prospects for

8

services subject to competition.

9

(iv)  Security information, including risk prevention

10

plans, detection and countermeasures, location of count

11

rooms, emergency management plans, security and

12

surveillance plans, equipment and usage protocols and

13

theft and fraud prevention plans and countermeasures.

14

(v)  Information with respect to which there is a

15

reasonable possibility that public release or inspection

16

of the information would constitute an unwarranted

17

invasion into personal privacy of any individual as

18

determined by the board.

19

(vi)  Records of an applicant or licensee not

20

required to be filed with the Securities and Exchange

21

Commission by issuers that either have securities

22

registered under section 12 of the Securities Exchange

23

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

24

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

25

Securities Exchange Act of 1934.

26

(vii)  Records considered nonpublic matters or

27

information by the Securities and Exchange Commission as

28

provided by 17 CFR 200.80 (relating to commission records

29

and information).

30

(viii)  Any financial information deemed confidential

- 92 -

 


1

by the board upon a showing of good cause by the

2

applicant or licensee.

3

(2)  No claim of confidentiality shall be made regarding

4

any information from a criminal history record check that is

5

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

6

to noncriminal justice agencies and individuals).

7

(3)  This subsection shall not apply to any information

8

in possession of the board that is otherwise publicly

9

available from another public agency in this Commonwealth or

10

another jurisdiction.

11

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

12

[investigation] investigations and enforcement), the

13

information made confidential pursuant to this section shall

14

be withheld from public disclosure in whole or in part,

15

except that any confidential information shall be released

16

upon the lawful order of a court of competent jurisdiction

17

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

18

authorized law enforcement agency or shall be released to the

19

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

20

is requested by an applicant and does not otherwise contain

21

confidential information about another person.

22

(5)  The board may seek a voluntary waiver of

23

confidentiality from an applicant or licensed entity but may 

24

not require any applicant or licensed entity to waive any

25

confidentiality provided for in this subsection as a

26

condition for the approval of a license or any other action

27

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

28

current or former board member, employee or independent

29

contractor of the board and any current or former member or

30

employee of the Pennsylvania State Police, Office of Attorney

- 93 -

 


1

General, Office of the Auditor General or department who

2

publicly discloses confidential information in violation of

3

this subsection shall be administratively disciplined by

4

discharge, suspension, termination of contract or other

5

formal disciplinary action as [the board deems] appropriate.

6

* * *

7

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

8

amended and the section is amended by adding a paragraph to

9

read:

10

§ 1207.  Regulatory authority of board.

11

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

12

* * *

13

(4)  Require that each licensed entity provide to the

14

board its audited annual financial statements, with such

15

additional detail as the board from time to time shall

16

require, which information shall be submitted not later than

17

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

18

* * *

19

(7.1)  Enforce prescribed hours for the operation of

20

table games so that a certificate holder may conduct table

21

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

22

of patrons or to meet competition.

23

(8)  Require that each licensed gaming entity prohibit

24

persons under 21 years of age from operating or using slot

25

machines or playing table games.

26

* * *

27

(14)  Consult with members of the Pennsylvania State

28

Police, the Office of Attorney General, the department and

29

such other persons it deems necessary for advice regarding

30

the various aspects of the powers and duties imposed on it

- 94 -

 


1

under this part and its jurisdiction over the authorization

2

and operation of slot machines, table games and licensed

3

facilities.

4

* * *

5

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

6

Title 4 are amended to read:

7

§ 1208.  Collection of fees and fines.

8

The board has the following powers and duties:

9

(1)  To levy and collect fees from the various

10

applicants, licensees and permittees to fund the operations

11

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

12

fees shall be deposited into the State Gaming Fund as

13

established in section 1403 (relating to establishment of

14

State Gaming Fund and net slot machine revenue distribution)

15

and distributed to the board upon appropriation by the

16

General Assembly. In addition to the fees set forth in

17

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

18

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

19

shall assess and collect fees as follows:

20

(i)  Supplier licensees shall pay [a]:

21

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

22

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

23

supplier license.] to supply slot machines or

24

associated equipment used in connection with slot

25

machines.

26

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

27

license to supply table game devices or associated

28

equipment used in connection with table games or

29

table game devices.

30

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

- 95 -

 


1

the appropriate supplier license. Upon the extension

2

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

3

(relating to supplier licenses), the fee shall be

4

$30,000 for the renewal.

5

(ii)  Manufacturer licensees shall pay [a]:

6

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

7

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

8

manufacturer license.] to manufacture slot machines

9

and associated equipment used in connection with slot

10

machines.

11

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

12

license to manufacture table game devices or

13

associated equipment used in connection with table

14

games or table game devices.

15

(C)  A manufacturer licensee shall pay an annual

16

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

17

appropriate manufacturer license. Upon the extension

18

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

19

(relating to manufacturer licenses), the fee shall be

20

$75,000 for the renewal.

21

(iii)  Each application for a slot machine license,

22

supplier license or manufacturer license must be

23

accompanied by a nonrefundable fee set by the board for

24

the cost of each individual requiring a background

25

investigation. The reasonable and necessary costs and

26

expenses incurred in any background investigation or

27

other investigation or proceeding concerning any

28

applicant, licensee, permittee or registrant shall be

29

reimbursed to the board by those persons.

30

* * *

- 96 -

 


1

§ 1209.  Slot machine license fee.

2

* * *

3

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

4

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

5

the board upon good cause consistent with the license

6

requirements as provided for in this part. Slot machine

7

licensees shall be required to update the information in their

8

initial applications annually, and the license of a licensee in

9

good standing shall be updated and renewed annually for two

10

subsequent years following the initial license issuance.

11

Thereafter, license renewals shall be every three years. Nothing

12

in this subsection shall relieve a licensee of the affirmative

13

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

14

of its license or to any other information contained in

15

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

16

of a license, no additional license fee pursuant to subsection

17

(a) shall be required.

18

* * *

19

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

20

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

21

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

22

license shall be returned to each licensee in the event

23

section 1201 (relating to Pennsylvania Gaming Control Board

24

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

25

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

26

amended or otherwise altered by an act of the General

27

Assembly within five years following the initial issuance of

28

any slot machine licenses pursuant to section 1301 (relating

29

to authorized slot machine licenses) to change:

30

(i)  the composition of the board;

- 97 -

 


1

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

2

board;

3

(iii)  the manner in which members are nominated or

4

appointed to the board;

5

(iv)  the length of term for which each member

6

serves;

7

(v)  the general jurisdiction of the board in a

8

manner that impairs or otherwise reduces the board's

9

licensing authority; or

10

(vi)  section 1307 to increase the statutory maximum

11

number of permissible licensed facilities.

12

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

13

altered by an act of the General Assembly as described

14

pursuant to paragraph (1):

15

(i)  In the sixth year following the initial issuance

16

of any slot machine licenses pursuant to section 1301, a

17

Category 1 and 2 slot machine licensee shall be entitled

18

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

19

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

20

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

21

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

22

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

23

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

24

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

25

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

26

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

27

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

28

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

29

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

30

entitled to a partial return of the one-time machine

- 98 -

 


1

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

2

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

3

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

4

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

5

license fee. Notwithstanding the foregoing, no slot machine

6

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

7

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

8

implements a recommendation made by the board pursuant to a

9

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

10

of the slot machine license fee imposed pursuant to subsection

11

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

12

returned to any slot machine licensee shall be reduced on a

13

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

14

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

15

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

16

combined with the total tax credits granted, exceed the amounts

17

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

18

partial return of the slot machine license fee shall extinguish

19

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

20

subsection (c).]

21

§ 1210.  Number of slot machines.

22

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

23

slot machine licensees under section 1305 (relating to Category

24

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

25

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

26

licensed facility and shall be required to operate and make

27

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

28

licensed facility within one year of the issuance by the board

29

of a slot machine license unless otherwise extended by the

30

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

- 99 -

 


1

additional period not to exceed 24 months.

2

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

3

for Category 3 slot machine licensees under section 1305 and

4

during the conversion from a temporary to a permanent facility,

5

approved renovations for a limited time or an emergency, all

6

slot machine licensees shall be required to operate and make

7

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

8

licensed facility at all times.

9

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

10

Category 3 slot machine licensees under section 1305, six months

11

following the date of commencement of slot machine operations,

12

the board may permit a slot machine licensee to install and

13

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

14

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

15

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

16

considering such an application, shall take into account the

17

appropriateness of the physical space where the additional slot

18

machines will be located and the convenience of the public

19

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

20

potential benefit to economic development, employment and

21

tourism, enhanced revenues to the Commonwealth and other

22

economic indicators it deems applicable in making its decision.

23

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

24

the beginning of slot machine operations at the licensed

25

facility, no licensed gaming entity may make available for play

26

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

27

machines from the same manufacturer or its affiliate,

28

intermediary, subsidiary or holding company. The provisions of

29

this subsection shall not apply to machines purchased pursuant

30

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

- 100 -

 


1

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

2

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

3

section is amended by adding subsections to read:

4

§ 1211.  Reports of board.

5

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

6

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

7

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

8

the General Assembly on the general operation of the board and

9

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

10

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

11

table game revenue at each licensed [facilities] facility during

12

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

13

collected and, where appropriate, disbursed, the costs of

14

operation of the board, all hearings conducted and the results

15

of the hearings and other information that the board deems

16

necessary and appropriate.

17

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

18

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

<--

19

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

20

all its itemized expenses for the preceding month of employees

21

and members of the board and all itemized expenses of officers

22

and employees of the department, the Attorney General and the

23

Pennsylvania State Police whose duties involve the regulation of

24

gaming under this part and all itemized expenses of officers and

25

employees of the Auditor General whose duties involve audit

26

activities of the board. The list lists shall identify the

<--

27

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

28

agency and employee of the agency to which an expense is

29

attributable. The list shall include each expense for which a

30

receipt is submitted to obtain reimbursement. If if the expense

<--

- 101 -

 


1

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

<--

2

the list shall identify the licensed gaming entity and whether

3

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

4

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

5

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

6

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

7

and the Pennsylvania State Police shall collaborate to develop a

8

uniform system to carry out the requirements of this subsection.

9

Information provided to the board for posting under this 

<--

10

subsection may be redacted by the provider of the information.

11

* * *

12

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

13

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

14

of the board required to be submitted to the General Assembly

15

under this part after the effective date of this subsection

16

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

17

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

18

§ 1211.1.  Report by slot machine licensee.

19

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

20

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

21

the General Assembly a report on minors and unauthorized gaming.

22

The report shall include the following information for the

23

licensed facility that the licensee is licensed to operate:

24

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

25

licensed facility.

26

(2)  The number of minors who were physically escorted

27

from the premises of the licensed facility.

28

(3)  The number of minors who were detected participating

29

or attempting to participate in slot machine and table

<--

30

gaming.

- 102 -

 


1

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

2

a law enforcement agency on the premises of the licensed

3

facility.

4

(5)  The number of minors who were detected illegally

5

consuming alcohol on the premises of the licensed facility IN

<--

6

the area where slot machines or table games are located.

<--

7

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

<--

8

were denied entry into the table game facility area where

<--

9

table games, including tournaments and contests are located.

10

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

11

licensee in resolution of incidents under paragraphs (1),

12

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

13

or disposition of any violations of this part.

14

(8)  A summary of actions taken and controls implemented

15

by the slot machine licensee to prevent facility access by

<--

16

minors and to prevent underage gaming and underage drinking

<--

17

in the licensed facility.

<--

18

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

19

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

20

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

21

read:

22

§ 1212.  Diversity goals of board.

23

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

24

Assembly that the board promote and ensure diversity in all

25

aspects of the gaming activities authorized under this part. The

26

board shall work to enhance the representation of diverse groups

27

in [the]:

28

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

29

licensed entities and licensed facilities in this

30

Commonwealth [and through the].

- 103 -

 


1

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

2

business enterprises associated with or utilized by licensed

3

entities and licensed facilities and through the provision of

4

goods and services utilized by slot machine licensees under

5

this part.

6

(3)  The operation of licensed entities and licensed

7

facilities and the conduct of slot machine and table gaming

<--

8

in this Commonwealth by ensuring licensed entities and

<--

9

licensed facilities promote the participation of diverse

10

groups by affording equal access to employment opportunities,

11

including key employee, gaming employee, and nongaming

12

employee positions.

13

(4)  The operation of business enterprises associated

14

with or utilized by licensed entities and licensed

<--

15

facilities, including business enterprises that provide

16

goods, property and services utilized by slot machine

17

licensees in this Commonwealth by ensuring these business

18

enterprises promote the participation of diverse groups by

19

affording equal access to employment opportunities.

20

(5)  The construction, renovation or reconstruction of a

21

licensed facility by ensuring that all contracts and

22

subcontracts to be awarded relating to the construction,

23

renovation or reconstruction of a licensed facility contain

24

adequate provisions ensuring all contractors or

25

subcontractors, including any assignees, will promote the

26

participation of diverse groups in any proposed construction,

27

renovation or reconstruction project by affording equal

28

access to employment opportunities.

29

(6)  The rendering of professional services to licensed

30

entities and licensed facilities by ensuring licensed

<--

- 104 -

 


1

entities and licensed facilities promote the participation of

<--

2

diverse groups by affording equal access to professional

3

service contractual opportunities.

4

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

5

investigate and conduct [an annual study] quarterly reviews to

6

evaluate the effectiveness of all diversity plans submitted by

<--

7

applicants for a slot machine license in accordance with section

8

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

9

recommendations for improvements to such diversity plans and

10

ascertain whether effective and meaningful action has been taken

11

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

12

diverse groups in the ownership, participation and operation of

13

licensed facilities in this Commonwealth, through the ownership

14

and operation of business enterprises associated with or

15

utilized by slot machine and table game licensees, through the

16

provision of goods, property and services utilized by slot

17

machine and table game licensees and through employment

18

opportunities.

19

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

<--

20

shall be completed six months following the effective date of

21

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

<--

22

quarterly thereafter and shall contain recommendations which the 

<--

23

board determines appropriate. Each study review shall contain,

<--

24

at a minimum:

25

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

26

promote and ensure diversity in all aspects of its operation.

27

(2)  A descriptive summary of the following relating to

28

each slot machine licensee's licensed facility:

29

(i)  Employment and salary range information.

30

(ii)  Employee recruitment and retention programs

- 105 -

 


1

designed to ensure the participation of diverse groups in

2

employment positions at the licensed facility by the slot

<--

3

machine licensee.

4

(iii)  Minority-owned business enterprise and women-

5

owned business enterprise contracting and subcontracting

6

data.

7

(d)  Facility responsibility Responsibility of slot machine

<--

8

licensee.--Each licensed facility slot machine licensee shall

<--

9

provide information as requested by the board to enable the

10

board to complete the study quarterly reviews required under

<--

11

subsection (c).

12

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

13

"professional services" means those services rendered to a

14

licensed entity or licensed facility slot machine licensee in

<--

15

this Commonwealth, including, but not limited to:

16

(1)  Legal services.

17

(2)  Advertising or public relations services.

18

(3)  Engineering services.

19

(4)  Architectural, landscaping or surveying services.

20

(5)  Accounting, auditing or actuarial services.

21

(6)  Security consultant services.

22

(7)  Computer and information technology services, except

23

telephone service.

24

§ 1213.  License or permit prohibition.

25

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

26

including principals and key employees,] The following apply:

27

(1)  The board shall be prohibited from granting a

28

principal license to a person who has been convicted of a

29

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

30

issued a license or permit unless 15 years has elapsed from

- 106 -

 


1

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

2

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

3

permit to an applicant who has been convicted in any

4

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

5

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

6

prohibited from granting the following:

7

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

8

convicted of a gambling offense in any jurisdiction that

9

is classified as a misdemeanor punishable by imprisonment

10

of more than one year unless 15 years have elapsed from

11

the date of conviction for the offense.

12

(ii)  A key employee, gaming employee permit or

13

license other than a principal license to a person who

14

has been convicted of a felony offense or a gambling

15

offense classified as a misdemeanor punishable by

16

imprisonment of more than one year in any jurisdiction

17

unless 15 years have elapsed from the date of conviction

18

for the offense.

19

(3)  Following the expiration of the prohibition period

20

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

21

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

22

consider the following factors:

23

[(1)] (i)  The nature and duties of the applicant's

24

position with the licensed entity.

25

[(2)] (ii)  The nature and seriousness of the offense

26

or conduct.

27

[(3)] (iii)  The circumstances under which the

28

offense or conduct occurred.

29

[(4)] (iv)  The age of the applicant when the offense

30

or conduct was committed.

- 107 -

 


1

[(5)] (v)  Whether the offense or conduct was an

2

isolated or a repeated incident.

3

[(6)] (vi)  Any evidence of rehabilitation, including

4

good conduct in the community, counseling or psychiatric

5

treatment received and the recommendation of persons who

6

have substantial contact with the applicant.

7

(4)  For purposes of this section, a felony offense is an

8

offense punishable by imprisonment for more than five years.

9

Section 10.1.  Title 4 is amended by adding a section 

<--

10

sections to read:

<--

11

§ 1214.  Specific authority to suspend slot machine license.

12

(a)  Conditions.--Any slot machine licensee that is required

13

as a condition of slot machine licensure to make annual payments

14

to a municipality or municipal authority for an economic

15

development project, including any project enumerated in the act

16

of July 25, 2007 (P.L.342, No.53), known as Pennsylvania Gaming

17

Economic Development and Tourism Fund Capital Budget Itemization

18

Act of 2007, shall enter into a written agreement with the

19

municipality or municipal authority and make the first annual

20

payment required under the agreement by October 15 December 31,

<--

21

2009.

22

(b)  Failure to meet conditions.--If the slot machine

23

licensee and the municipality or municipal authority fail to

24

enter into a written agreement, and the slot machine licensee

25

fails to make the first required annual payment under the

26

written agreement, by October 15, 2009, the board shall

27

immediately suspend the slot machine license and appoint a

28

trustee to oversee the operations of the licensed gaming

29

facility. The trustee shall immediately remit the first required

30

annual payment to the municipality or municipal authority on

- 108 -

 


1

behalf of the slot machine licensee.

2

(c)  Terms of license suspension.--The slot machine license

3

suspension shall remain in effect until the slot machine

4

licensee and the municipality or municipal authority execute a

5

written agreement governing the terms of the required annual

6

payments, including the date on which the payments shall be

7

made, the amount of each annual payment and the duration of the

8

annual payments. The trustee shall establish an account or

9

accounts to place all profits of the slot machine licensee from

10

gaming or other revenues of the slot machine licensee's licensed

11

facility until a written agreement is executed between the slot

12

machine licensee and the municipality or municipal authority.

13

(d)  Violation of written agreement.--If any slot machine

14

licensee that is required as a condition of slot machine

15

licensure to make annual payments to a municipality or municipal

16

authority for an economic development project, including any

17

project enumerated in the Pennsylvania Gaming Economic

18

Development and Tourism Fund Capital Budget Itemization Act of

19

2007, fails to make any required payment in accordance with the

20

terms of any written agreement between the slot machine licensee

21

and the municipality or municipal authority governing the

22

economic development project, the board shall immediately

23

suspend the slot machine license and appoint a trustee to

24

oversee the operations of the licensed gaming facility. The

25

trustee shall continue to make payments to the municipality or

26

municipal authority according to the terms of the written

27

agreement and establish an account or accounts to place the

28

profits of the slot machine licensee from gaming or other

29

revenues of the slot machine licensee's licensed facility

30

pending resolution of the payment issue between the slot machine

- 109 -

 


1

licensee and the municipality or municipal authority.

2

§ 1215.  Auditor General's reports.

<--

3

(a)  Annual audit.--In cooperation with the department and

4

the State Treasurer, the Auditor General shall annually audit

5

and report on the amounts and uses of the distributions made

6

under Chapter 14 (relating to revenues) from the State Gaming

7

Fund, the local share assessment to counties and municipalities,

8

the Pennsylvania Race Horse Development Fund and the

9

Pennsylvania Gaming Economic Development and Tourism Fund.

10

(b)  Internal audit.--Every four years, the Auditor General

11

shall perform an internal audit of the expenses and revenues of

12

the board. In addition to examining the agency's financial

13

statements, the Auditor General shall be entitled to examine

14

original source documents at such times as is believed necessary

15

or may otherwise examine original documents on a random basis

16

designed to ensure the integrity of the audit. The audit shall

17

include the expenses incurred by individual members of the board

18

and reimbursed or otherwise paid for by the board. The Auditor

19

General shall prepare a written report of its audits under this

20

section and submit a copy of the report to the Community,

21

Economic and Recreational Development Committee of the Senate

22

and the Gaming Oversight Committee of the House of

23

Representatives no later than April 1 of each year.

24

Section 10.2.  Section 1305(a)(1), (c), (d) and (e) of Title

25

4 are amended to read:

26

§ 1305.  Category 3 slot machine license.

27

(a)  Eligibility.--

28

(1)  A person may be eligible to apply for a Category 3

29

license if the applicant, its affiliate, intermediary,

30

subsidiary or holding company has not applied for or been

- 110 -

 


1

approved or issued a Category 1 or 2 license and the person

2

is seeking to locate a Category 3 licensed facility in a

3

well-established resort hotel having no fewer than 275 guest

4

rooms under common ownership and having substantial year-

5

round recreational guest amenities. The applicant for a

6

Category 3 license shall be the owner or be a wholly owned

7

subsidiary of the owner of the established resort hotel. [A

8

Category 3 license may only be granted upon the express

9

condition that an individual may not enter a gaming area of

10

the licensee if the individual is not a registered overnight

11

guest of the established resort hotel or if the individual is

12

not a patron of one or more of the amenities provided by the

13

established resort hotel.]

14

* * *

15

(c)  Number of slot machines.--Notwithstanding the number of

16

permissible slot machines as set forth in section 1210 (relating

17

to number of slot machines), a Category 3 license granted under

18

the provisions of this section shall entitle the licensed entity

19

to operate no more than 500 slot machines at the licensed

20

facility, provided, however, the board may increase the number

21

of slot machines by a number not to exceed 1,000 slot machines

22

in the aggregate upon good cause shown by the slot machine

23

licensee and payment of the additional fee pursuant to

24

subsection (d).

25

(d)  Category 3 license fee.--Notwithstanding the one-time

26

slot machine license fee as set forth in section 1209 (relating

27

to slot machine license fee), the board shall impose a one-time

28

Category 3 license fee to be paid by each successful applicant

29

in the amount of $5,000,000 to be deposited in the State Gaming

30

Fund. If the board authorizes the operation of more than 500

- 111 -

 


1

slot machines at a Category 3 facility pursuant to subsection

2

(c), the board shall impose a one-time fee in the amount of

3

$5,000,000 for each additional 250 slot machines. The fee for

4

the additional slot machines shall be in addition to the

5

$5,000,000 fee required to operate 500 slot machines pursuant to

6

subsection (c) and shall be deposited into the General Fund. The

7

provisions of section 1209 relating to term, credit against tax

8

for slot machine licensees, deposit of license fee and change of

9

ownership or control of a license shall be applicable to a

10

Category 3 license fee.

11

(e)  Definitions.--For the purpose of subsection (a), the

12

following words and phrases shall have the meaning given to them

13

in this subsection:

14

"Amenities."  Any ancillary activities, services or

15

facilities in which a registered guest or the transient public[,

16

in return for non-de minimis consideration as defined by board

17

regulation,] may participate at a resort hotel, including, but

18

not limited to, sports and recreational activities and

19

facilities such as a golf course or golf driving range, tennis

20

courts or swimming pool; health spa; convention, meeting and

21

banquet facilities; entertainment facilities; and restaurant

22

facilities.

23

["Patron of the amenities."  Any individual who is a

24

registered attendee of a convention, meeting or banquet event or

25

a participant in a sport or recreational event or any other

26

social, cultural or business event held at a resort hotel or who

27

participates in one or more of the amenities provided to

28

registered guests of the resort hotel.]

29

Section 10.3.  Section 1308 of Title 4 is amended by adding a

30

subsection to read:

- 112 -

 


1

§ 1308.  Applications for license or permit.

2

* * *

3

(a.1)  Submission of information.--Notwithstanding the

4

provisions of 18 Pa.C.S. § 9124(b) (relating to use of records

5

by licensing agencies), an application for a license or permit

6

under this part shall include all arrests and convictions of the

7

applicant. The information shall include:

8

(1)  A brief description of the circumstances surrounding

9

the arrest.

10

(2)  The specific offense charged.

11

(3)  The ultimate disposition of the charges, including

12

the details of any dismissal, plea bargain, conviction or

13

sentence, including any pardon, expungement or order of

14

Accelerated Rehabilitative Disposition.

15

* * *

16

Section 10.4.  Sections 1310 and 1313(c) of Title 4 are

17

amended to read:

18

§ 1310.  Slot machine license application character

19

requirements.

20

(a)  Application.--

21

(1)  Every application for a slot machine license shall

22

include such information, documentation and assurances as may

23

be required to establish by clear and convincing evidence the

24

applicant's suitability, including good character, honesty

25

and integrity. Information shall include, without limitation,

26

information pertaining to family, habits, character,

27

reputation, criminal history background, business activities,

28

financial affairs and business, professional and personal

29

associates, covering at least the ten-year period immediately

30

preceding the filing date of the application.

- 113 -

 


1

(2)  Notwithstanding 18 Pa.C.S. § 9124(b) (relating to

2

use of records by licensing agencies), a conviction that has

3

been expunged or overturned, or for which a person has been

4

pardoned or an order of Accelerated Rehabilitative

5

Disposition has been issued, shall be included with an

6

application and shall be considered by the board as part of

7

the review of the applicant's suitability under paragraph

8

(1).

9

(b)  Civil judgments and law enforcement agency

10

information.--Each applicant shall notify the board of any civil

11

judgments obtained against the applicant pertaining to antitrust

12

or security regulation laws of the Federal Government, this

13

Commonwealth or any other state, jurisdiction, province or

14

country. In addition, each applicant shall produce a letter of

15

reference from law enforcement agencies having jurisdiction in

16

the applicant's place of residence and principal place of

17

business, which letter of reference shall indicate that the law

18

enforcement agencies do not have any pertinent information

19

concerning the applicant or, if the law enforcement agency does

20

have information pertaining to the applicant, shall specify the

21

nature and content of that information. If no letters are

22

received within 30 days of the request, the applicant may submit

23

a statement under oath which is subject to the penalty for false

24

swearing under 18 Pa.C.S. § 4903 (relating to false swearing)

25

that the applicant is or was during the period the activities

26

were conducted in good standing with the gaming or casino

27

enforcement or control agency.

28

(c)  Gaming or casino enforcement agency information.--If the

29

applicant has held a gaming license in a jurisdiction where

30

gaming activities are permitted, the applicant shall produce a

- 114 -

 


1

letter of reference from the gaming or casino enforcement or

2

control agency which shall specify the experiences of that

3

agency with the applicant, the applicant's associates and the

4

applicant's gaming operation. If no letters are received within

5

30 days of the request, the applicant may submit a statement

6

under oath which is subject to the penalty for false swearing

7

under 18 Pa.C.S. § 4903 that the applicant is or was during the

8

period the activities were conducted in good standing with the

9

gaming or casino enforcement or control agency.

10

(d)  Agency records.--Each applicant for a slot machine

11

license, principal license or key employee license shall be

12

required to apply to the Federal agency deemed appropriate by

13

the board for agency records under the Freedom of Information

14

Act (Public Law 89-554, 5 U.S.C. § 522) pertaining to the

15

applicant and provide the board with the complete record

16

received from the Federal agency. The board may issue a license

17

to the applicant prior to the receipt of information under this

18

subsection.

19

§ 1313.  Slot machine license application financial fitness

20

requirements.

21

* * *

22

(c)  Applicant's ability to pay license fee.--The board shall

23

require each applicant for a Category 1 or 2 slot machine

24

license at the time of application to post a letter of credit or

25

bond in the amount of $50,000,000 to demonstrate the financial

26

ability to pay the slot machine license fee as required in

27

section 1209 (relating to slot machine license fee) if issued a

28

slot machine license by the board. Each applicant for a Category

29

3 slot machine license at the time of application shall be

30

required to post a letter of credit or bond in the amount of

- 115 -

 


1

$5,000,000 to demonstrate the financial ability to pay the

2

Category 3 slot machine license fee as required in section 1305

3

(relating to Category 3 slot machine license) if issued a slot

4

machine license by the board. Each Category 3 slot machine

5

licensee that seeks to increase the number of slot machines in

6

operation at the licensed facility pursuant to section 1305(c)

7

(relating to Category 3 slot machine license) shall be required

8

to post a letter of credit or bond in the amount of $5,000,000

9

to demonstrate the financial ability to pay the additional

10

Category 3 slot machine license fee as required in section

11

1305(d).

12

* * *

13

Section 10.5.  Sections 1317(a) and (c) and 1317.1(a), (b)

14

(5), (c), (d.1) and (e) of Title 4 are amended and the sections

15

are amended by adding subsections to read:

16

§ 1317.  Supplier licenses.

17

(a)  Application.--A manufacturer that elects to contract

18

with a supplier under section 1317.1(d.1) (relating to

19

manufacturer licenses) shall ensure that the supplier is

20

licensed under this section. A person seeking to provide slot

21

machines, table game devices or associated equipment to a slot

22

machine licensee within this Commonwealth through a contract

23

with a licensed manufacturer shall apply to the board for a

24

supplier license.

25

* * *

26

(c)  Review and approval.--Upon being satisfied that the

27

requirements of subsection (b) have been met or waived under

28

subsection (c.1), the board may approve the application and

29

issue the applicant a supplier license consistent with all of

30

the following:

- 116 -

 


1

(1)  [The license shall be for a period of one year. Upon

2

expiration, the license may be renewed in accordance with

3

subsection (d)] The initial license shall be for a period of

4

one year and shall be subject to renewal annually under

5

subsection (d) for two consecutive one-year periods following

6

the initial issuance. Thereafter, a license shall be subject

7

to renewal every three years. Nothing in this paragraph shall

8

relieve the a licensee of the affirmative duty to notify the

<--

9

board of any changes relating to the status of its license or

10

to any information contained in application materials on file

11

with the board.

12

* * *

13

(c.1)  Waiver.--The board shall establish standards and a

14

procedure to allow the board to waive the requirements of this

15

section for any person who holds a supplier license under this

16

section and who seeks to supply table game devices or associated

17

equipment. The board may only waive the requirements of this

18

section if:

19

(1)  The supplier license was issued by the board within

20

a 36-month period immediately preceding the date the supplier

21

licensee files an initial application to supply table game

22

devices or associated equipment.

23

(2)  The person to whom the supplier license was issued

24

affirms there has been no material change in circumstances

25

relating to the license.

26

(3)  The board determines there has been no material

27

change in circumstances relating to the license that

28

necessitates, at the discretion of the board, that the

29

requirements of this section not be waived.

30

* * *

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1

§ 1317.1.  Manufacturer licenses.

2

(a)  Application.--A person seeking to manufacture slot

3

machines, table game devices and associated equipment for use in

4

this Commonwealth shall apply to the board for a manufacturer

5

license.

6

(b)  Requirements.--An application for a manufacturer license

7

shall be on the form required by the board, accompanied by the

8

application fee, and shall include all of the following:

9

* * *

10

(5)  The type of slot machines, table game devices or

11

associated equipment to be manufactured or repaired.

12

(c)  Review and approval.--Upon being satisfied that the

13

requirements of subsection (b) have been met or waived under

14

subsection (c.1), the board may approve the application and

15

grant the applicant a manufacturer license consistent with all

16

of the following:

17

(1)  [The license shall be for a period of one year. Upon

18

expiration, a license may be renewed in accordance with

19

subsection (d)] The initial license shall be for a period of

20

one year and shall be subject to renewal annually under

21

subsection (d) for two consecutive one-year periods following

22

the initial issuance. Thereafter, a license shall be subject

23

to renewal every three years. Nothing in this paragraph shall

24

relieve the licensee of the affirmative duty to notify the

25

board of any changes relating to the status of its license or

26

to any other information contained in application materials

27

on file with the board.

28

(2)  The license shall be nontransferable.

29

(3)  Any other condition established by the board.

30

(c.1)  Waiver.--The board shall establish standards and a

- 118 -

 


1

procedure to allow the board to waive the requirements of this

2

section for any person who holds a manufacturer license under

3

this section and who seeks to manufacture table game devices or

4

associated equipment. The board may only waive the application

5

requirement under this section if:

6

(1)  The manufacturer license was issued by the board

7

within a 36-month period immediately preceding the date the

8

manufacturer licensee files an application to manufacture

9

table game devices or associated equipment.

10

(2)  The person to whom the manufacturer license was

11

issued affirms there has been no material change in

12

circumstances relating to the license.

13

(3)  The board determines there has been no material

14

change in circumstances of the licensee that necessitates, at

15

the discretion of the board, that the requirements of this

16

section not be waived.

17

* * *

18

(d.1)  Authority.--The following shall apply to a licensed

19

manufacturer:

20

(1)  A licensed manufacturer or its designee, as licensed

21

by the board, may supply or repair any slot machine, table

22

game device or associated equipment manufactured by the

23

licensed manufacturer.

24

(2)  A manufacturer may contract with a supplier under

25

section 1317 (relating to supplier licenses) to provide slot

26

machines or associated equipment to a slot machine licensee

27

within this Commonwealth.

28

(3)  A manufacturer may contract with a supplier under

29

section 1317 to provide table games game devices or

<--

30

associated equipment to a certificate holder.

- 119 -

 


1

(e)  Prohibitions.--

2

(1)  No person may manufacture slot machines, table game

3

devices or associated equipment for use within this

4

Commonwealth by a slot machine licensee unless the person has

5

been issued a manufacturer license as required under this

6

section.

7

(2)  No slot machine licensee may use slot machines,

8

table game devices or associated equipment unless the slot

9

machines, table game devices or associated equipment were

10

manufactured by a person that has been issued a manufacturer

11

license under this section.

12

(3)  No person issued a license under this section shall

13

apply for or be issued a license under section 1317.

14

(4)  No limitation shall be placed on the number of

15

manufacturer licenses issued or the time period to submit

16

applications for licensure, except as required to comply with

17

section 1306 (relating to order of initial license issuance).

18

Section 10.6.  Title 4 is amended by adding a section to

19

read:

20

§ 1317.2.  Gaming service provider.

21

(a)  Development of classification system.--The board shall

22

develop uniform standards and procedures governing the

23

registration regulation of gaming service providers. Each

<--

24

applicant and all individuals and entities associated with the

<--

25

applicant for authorization to act as a gaming service provider

<--

26

shall submit to a background investigation. The classification

27

system developed by the board shall be based upon the following:

<--

28

(1)  The monetary value or amount of business conducted

29

or expected to be conducted by the gaming service provider

30

with an applicant for a slot machine licensee or a slot

- 120 -

 


1

machine licensee in any consecutive 12-month period.

2

(2)  Whether the employees of the gaming service provider

3

will have access to the gaming floor or the restricted area

4

of a licensed facility.

5

(3)  The board's analysis of the goods, property or

6

service provided or to be provided by the gaming service

7

provider in order to ensure the integrity of gaming.

8

(b)  Authority to exempt.--The board may exempt any person or

9

field of commerce from the requirements of this section if the

10

board determines the following:

<--

11

(1)  The the person or field of commerce is regulated by

<--

12

an agency of the Federal Government or an agency of the

13

Commonwealth.; or

<--

14

(2)  Regulation the regulation of the person or field of

<--

15

commerce is determined not to be necessary in order to

16

protect the public interest or the integrity of gaming.

17

(c)  Duties of gaming service providers.--Each gaming service

18

provider shall have a continuing duty to:

19

(1)  Provide all information, documentation and

20

assurances as the board may require.

21

(2)  Cooperate with the board in investigations, hearings

22

and enforcement and disciplinary actions.

23

(3)  Comply with all conditions, restrictions,

24

requirements, orders and rulings of the board in accordance

25

with this part.

26

(4)  Report any change in circumstances that may render

27

the gaming service provider ineligible, unqualified or

28

unsuitable for continued licensure.

29

(d)  Requirement for permit.--The board may require employees

30

of a gaming service provider to obtain a permit or other

- 121 -

 


1

authorization if, after an analysis of duties, responsibilities

2

and functions, the board determines that a permit or other

3

authorization is necessary to protect the integrity of gaming.

4

(e)  Interim authorization.--The board or a designated

5

employee of the board may permit a gaming service provider

6

applicant to engage in business with an applicant for a slot

7

machine license or a slot machine licensee prior to approval of

8

the gaming service provider application if the following

9

criteria have been satisfied:

10

(1)  A completed application has been filed with the

11

board by the gaming service provider.

12

(2)  The slot machine applicant or slot machine licensee

13

contracting or doing business with the gaming service

14

provider certifies that it has performed due diligence on the

15

gaming service provider and believes that the applicant meets

16

the qualification to be a gaming service provider pursuant to

17

this section.

18

(3)  The gaming service provider applicant agrees in

19

writing that the grant of interim authorization to conduct

20

business prior to board approval of its application does not

21

create a right to continue to engage in business if the board

22

determines that the applicant is not suitable and interim

23

authorization is not in the public interest.

24

(f)  Construction.--Nothing in this section shall be

25

construed to prohibit the board from rescinding a grant of

26

interim authorization if, at any time, the suitability of the

27

person subject to interim authorization is at issue or if the

28

person fails to cooperate with the board, the bureau or an agent

29

of the board or bureau.

30

(g)  Provider Gaming service provider lists.--The board

<--

- 122 -

 


1

shall:

2

(1)  Develop and maintain a list of approved gaming

3

service providers and a list of gaming service providers who

<--

4

are authorized to provide goods, property or services under a

5

grant of interim authorization pursuant to subsection (e)(3).

6

(2)  Develop and maintain a list of prohibited gaming

7

service providers. An applicant for a slot machine license or

8

a slot machine licensee may not enter into an agreement or

9

continue to engage in business with a gaming service provider

<--

10

listed on the prohibited gaming service provider list.

11

(h)  Emergency authorization.--A slot machine licensee may

12

utilize a gaming service provider that has not been approved by

13

the board when a threat to public health, welfare or safety

14

exists or circumstances outside the control of the slot machine

15

licensee require immediate action to protect the public

16

interest. The board shall promulgate regulations to govern the

17

use of gaming service providers under emergency circumstances.

18

(i)  Criminal history record information.--If the

19

classification system developed by the board in accordance with

20

subsection (a) requires a gaming service provider or an employee

21

of a gaming service provider to submit to or provide the bureau

22

with a criminal history record check under 18 Pa.C.S. Ch. 91

23

(relating to criminal history record information), the bureau

24

shall notify the slot machine licensee that submitted and

25

verified the application of a person if the person's application

<--

26

has been denied or the person's approval or authorization to

<--

27

provide goods, property or services has been revoked or

28

suspended, including the reason for the action taken.

29

Section 10.7.  Sections 1318(c) and 1319 of Title 4 are

30

amended to read:

- 123 -

 


1

§ 1318.  Occupation permit application.

2

* * *

3

(c)  Prohibition.--No slot machine licensee may employ or

4

permit any person under 18 years of age to render any service

5

whatsoever in any area of its licensed facility [at which] where 

6

slot machines or table games are physically located.

7

§ 1319.  Alternative manufacturer licensing standards.

8

(a)  General rule.--The board may determine whether the

9

licensing standards of another jurisdiction within the United

10

States in which an applicant for a manufacturer license is

11

similarly licensed are comprehensive and thorough and provide

12

similar adequate safeguards as those required by this part. If

13

the board makes that determination, it may issue a manufacturer

14

license to an applicant who holds a similar manufacturer license

15

in such other jurisdiction after conducting an evaluation of the

16

information relating to the applicant from such other

17

jurisdictions, as updated by the board, and evaluating other

18

information related to the applicant received from that

19

jurisdiction and other jurisdictions where the applicant may be

20

licensed, the board may incorporate such information in whole or

21

in part into its evaluation of the applicant.

22

(b)  Abbreviated process.--In the event an applicant for a

23

[slot machine] manufacturer license is licensed in another

24

jurisdiction, the board may determine to use an alternate

25

process requiring only that information determined by the board

26

to be necessary to consider the issuance of a license, including

27

financial viability of the licensee, to such an applicant.

28

Nothing in this section shall be construed to waive any fees

29

associated with obtaining a license through the normal

30

application process.

- 124 -

 


1

Section 10.8.  Title 4 is amended by adding a section to

2

read:

3

§ 1319.1.  Alternative supplier licensing standards.

4

(a)  General rule.--The board may determine whether the

5

licensing standards of another jurisdiction within the United

6

States in which an applicant for a supplier's license is

7

similarly licensed are comprehensive and thorough and provide

8

similar adequate safeguards as required by this part. If the

9

board makes that determination, it may issue a supplier license

10

to an applicant who holds a similar supplier license in another

11

jurisdiction after conducting an evaluation of the information

12

relating to the applicant from the other jurisdictions, as

13

updated by the board and evaluating other information related to

14

the applicant received from that jurisdiction and other

15

jurisdictions where the applicant may be licensed, the board may

16

incorporate the information in whole or in part into its

17

evaluation of the applicant.

18

(b)  Abbreviated process.--In the event an applicant for a

19

supplier license is licensed in another jurisdiction, the board

20

may determine to use an alternate process requiring only the

21

information determined by the board to be necessary to consider

22

the issuance of a license, including financial viability of the

23

licensee to the applicant. Nothing in this section shall be

24

construed to waive any fees associated with obtaining a license

25

through the normal application process.

26

Section 10.9.  Sections 1321, 1326(a), 1328(a)(1) and (d) and

<--

27

1329 of Title 4 are amended to read:

28

§ 1321.  Additional licenses and permits and approval of

29

agreements.

30

(a)  Requirements.--In addition to the requirements for a

- 125 -

 


1

license or permit specifically set forth in this part, the board

2

may require a license [or], permit or other authorization, and

3

set a fee for the same, for any key or gaming employee or any

4

person who satisfies any of the following criteria:

5

(1)  The person transacts business within this

6

Commonwealth with a slot machine licensee as a ticket

7

purveyor, tour operator, operator of a bus trip program or

8

operator of any other type of travel program or promotional

9

business related to slot machines or table games. The board

10

may also review, deny, order modification or approve, at its

11

discretion, proposed tours, bus routes and travel programs.

12

(2)  The person is presently not [otherwise] required to

13

be licensed or permitted under this part and provides any

14

goods, property or services, including, but not limited to,

15

management contracts for compensation to a slot machine

16

licensee at the licensed facility.

17

(b)  Agreement.--Any agreement to conduct business within

18

this Commonwealth between a person and a slot machine licensee

19

relating to slot machines, table games, table game devices or

<--

20

associated equipment is subject to the approval of the board in

21

accordance with rules and regulations promulgated by the board.

22

Every agreement shall be in writing and shall include a

23

provision for its termination without liability on the part of

24

the slot machine licensee upon a finding by the board that the

25

agreement is not approved or that it is terminated. Failure to

26

expressly include this condition in the agreement is not a

27

defense in any action brought under this section relating to the

28

termination of the agreement.

29

§ 1326.  License renewals.

30

(a)  Renewal.--All permits and licenses issued under this

- 126 -

 


1

part unless otherwise provided shall be subject to renewal on an

2

annual basis [upon the application of the holder of the permit

3

or license submitted to the board at least 60 days prior to the

4

expiration of the permit or license] for the first two years

5

following the initial issuance. Thereafter, all permits and

6

licenses shall be subject to renewal every three years. Nothing

7

in this subsection shall relieve a licensee of the affirmative

8

duty to notify the board of any changes relating to the status

9

of its license or to any other information contained in

10

application materials on file with the board. The application

11

for renewal shall be submitted at least 60 days prior to the

12

expiration of the permit or license and shall include an update

13

of the information contained in the initial and any prior

14

renewal applications and the payment of any renewal fee required

15

by this part. The amount of any renewal fee shall be calculated

16

by the board to reflect the longer renewal period. A permit or

17

license for which a completed renewal application and fee, if

18

required, has been received by the board will continue in effect

19

unless and until the board sends written notification to the

20

holder of the permit or license that the board has denied the

21

renewal of such permit or license.

22

* * *

23

§ 1328.  Change in ownership or control of slot machine

24

licensee.

25

(a)  Notification and approval.--

26

(1)  A slot machine licensee shall notify the board

27

[prior to or] immediately upon becoming aware of any proposed

28

or contemplated change of ownership of the slot machine

29

licensee by a person or group of persons acting in concert

30

which involves any of the following:

- 127 -

 


1

(i)  More than 5% of a slot machine licensee's

2

securities or other ownership interests.

3

(ii)  More than 5% of the securities or other

4

ownership interests of a corporation or other form of

5

business entity that owns directly or indirectly at least

6

20% of the voting or other securities or other ownership

7

interests of the licensee.

8

(iii)  The sale other than in the ordinary course of

9

business of a licensee's assets.

10

(iv)  Any other transaction or occurrence deemed by

11

the board to be relevant to license qualifications.

12

* * *

13

(d)  Fee reduction.--The board may in its discretion

<--

14

eliminate the need for qualification and/or proportionately

15

reduce, but not eliminate, the new license fee otherwise

16

required pursuant to this section in connection with a change of

17

control of a licensee, depending upon the type of transaction,

18

the relevant ownership interests and changes thereto resulting

19

from the transaction and other considerations deemed relevant by

20

the board. In no case shall the fee be reduced below $10,000,000

21

for a Category 1 or Category 2 license or $1,000,000 for a

22

Category 3 license.

23

* * *

24

§ 1329.  [Nonportability] Portability and relocation of slot

25

machine license.

26

(a)  General rule.--Each slot machine license shall only be

27

valid for the specific physical location within the municipality

28

and county for which it was originally granted. [No]

29

(b)  Petition.--An applicant for a slot machine license or a

30

slot machine licensee may petition the board to relocate the

- 128 -

 


1

approved physical location of a licensed facility. In evaluating

2

a petition to relocate, the board shall consider the following

3

factors:

<--

4

(1)  The address of the proposed new location and the

5

reason for the relocation.

6

(2)  A comparative analysis, submitted by the petitioner,

7

detailing estimated gross terminal revenues at the new

<--

8

proposed location with estimated gross terminal revenues at

<--

9

the original approved physical location.

<--

10

(3)  A comparative analysis, submitted by the petitioner,

11

detailing the economic impact of the licensed facility at the

12

new proposed location with the estimated economic impact at

<--

13

the original approved physical location. The comparative

<--

14

analysis shall include the total cost of the project and

15

projected direct and indirect employment figures.

16

(4)  A comprehensive traffic study commissioned by the

17

board.

18

(5)  Community support or opposition.

19

(6)  Any other information requested by the board.

20

(c)  Relocation.--A slot machine licensee [shall] may be

21

permitted to move or relocate the physical location of the

22

licensed facility [without] with board approval [for] upon good

23

cause shown if the relocation of the licensed facility:

<--

24

(1)  the relocated licensed facility remains within the

<--

25

same municipality as originally licensed;

26

(2)  the relocation will facilitate the timely operation

<--

27

of slot machines;

28

(3)  the relocated licensed facility complies with all

<--

29

other provisions of this part related to the siting and

30

location of a licensed facility; and

- 129 -

 


1

(4)  relocation of the licensed facility is in the best

<--

2

interests of the Commonwealth.

3

(d)  Public input hearing.--The board shall hold at least one

4

public input hearing in the municipality where the licensed

5

facility will be located prior to approval of the relocation.

6

(e)  Restriction.--No grant or loan from the Commonwealth may

7

be awarded for the purpose of relocating or developing the

8

relocated licensed facility to comply with any conditions of

9

approval of the relocation.

10

Section 11.  Title 4 is amended by adding a section to read:

11

§ 1332.  Appointment of trustee.

12

(a)  Appointment.--Upon petition of the Office of Enforcement

13

Counsel, the board may order the appointment of a trustee from

14

the list required under subsection (j) to act on behalf of the

15

interests of the Commonwealth and the board to assure compliance

16

with this part and any conditions imposed upon the slot machine

17

license in the following circumstances:

18

(1)  Upon the revocation, suspension or nonrenewal of a

19

slot machine license or a principal license if the principal

20

licensee is the only principal who exercises operational

21

control of the licensed facility.

22

(2)  Upon the failure to renew a slot machine license or

23

a principal license if the principal licensee is the only

24

principal who exercises operational control of the licensed

25

facility until the slot machine or principal license is

26

renewed or until the discontinuation of the trusteeship

27

pursuant to subsection (i).

28

(3)  If necessary to protect the best interests of the

29

Commonwealth.

30

(b)  Qualifications.--The following shall apply:

- 130 -

 


1

(1)  A trustee shall be required to qualify as a

2

principal and obtain a principal license pursuant to this

3

part. The board may appoint a trustee and award the trustee a

4

temporary principal license as prescribed in board

5

regulations.

6

(2)  Before assuming duties, a trustee shall execute and

7

file a bond for the faithful performance of the trustee's

8

duties. The bond shall be payable to the board with sureties

9

and in the amount and form as required by board order. The

10

cost of the bond shall be paid by the former or suspended

11

licensee.

12

(3)  A trustee shall be a resident of this Commonwealth.

13

(c)  Powers.--A trustee appointed under this section shall

14

exercise only those powers and perform those duties expressly

15

conferred upon the trustee by the board. The board's order

16

appointing the trustee shall set forth the powers, duties and

17

responsibilities of the trustees which may include:

18

(1)  Maintaining and operating the licensed facility in a

19

manner that complies with this part and any conditions

20

imposed by the board.

21

(2)  Maintaining and operating the licensed facility

22

consistent with the measures generally taken in the ordinary

23

course of business including:

24

(i)  Entering into contracts.

25

(ii)  Borrowing money.

26

(iii)  Pledging, mortgaging or otherwise encumbering

27

the licensed facility or property thereof as security for

28

the repayment of loans subject to any provisions and

29

restrictions in any existing credit documents.

30

(iv)  Hiring, firing and disciplining employees.

- 131 -

 


1

(3)  Exercising the rights and obligations of the former

2

or suspended licensee.

3

(4)  Taking possession of all of the property of the slot

4

machine licensee, including its books, records and papers.

5

(5)  Establishing accounts with financial institutions.

6

An account may not be established with a financial

7

institution in which an affiliate of the former or suspended

8

licensee, or in which the trustee, or an immediate family

9

member of the trustee, has a controlling interest.

10

(6)  Meeting with the former or suspended licensee.

11

(7)  Meeting with principals and key employees at the

12

licensed facility.

13

(8)  Meeting with the independent audit committee.

14

(9)  Meeting with the board's executive director and

15

keeping the board's executive director apprised of actions

16

taken and the trustee's plans and goals for the future.

17

(10)  Hiring legal counsel, accountants or other

18

consultants or assistants, with prior approval of the board,

19

as necessary to carry out the trustee's duties and

20

responsibilities.

21

(11)  Settling or compromising with any debtor or

22

creditor of the former or suspended licensee, including any

23

taxing authority.

24

(12)  Reviewing outstanding agreements to which the

25

former or suspended licensee is a party and advising the

26

board as to which, if any, of the agreements should be the

27

subject of scrutiny, examination or investigation by the

28

board.

29

(13)  Obtaining board approval prior to any sale, change

30

of ownership, change of control, change of financial status,

- 132 -

 


1

restructuring, transfer of assets or execution of a contract

2

or any other action taken outside of the ordinary course of

3

business.

4

(14)  Obtaining board approval for any payments outside

5

of those made in the ordinary course of business.

6

Notwithstanding any provision contained in this subsection to

7

the contrary, the trustee shall have the duty to conserve and

8

preserve the assets of the licensed gaming entity.

9

(d)  Compensation.--The board shall establish the

10

compensation of a trustee and shall review and approve actual

11

and reasonable costs and expenses of the trustee, legal counsel,

12

accountants or other consultants or assistants hired by the

13

trustee and other persons the board may appoint in connection

14

with the trusteeship action. The compensation, costs and

15

expenses shall be paid by the former or suspended licensee.

16

Total compensation for the trustee and all individuals hired or

17

retained by the trustee under subsection (c)(10) shall not

18

exceed $600 per hour in the aggregate, except that the board,

19

upon a finding that unanticipated circumstances exist, may

20

adjust the aggregate hourly rate of compensation.

21

(e)  Reports.--A trustee shall file reports with regard to

22

the administration of the trusteeship with the board in the form

23

and at intervals as the board orders. The board may direct that

24

copies or portions of the trustee's reports be mailed to

25

creditors or other parties in interest and make summaries of the

26

reports available to the public and shall post them on the

27

board's Internet website.

28

(f)  Review of actions.--A creditor or party in interest

29

aggrieved by any alleged breach of a delegated power or duty of

30

a trustee in the discharge of the trustee's duties may request a

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1

review of the trustee's action or inaction by filing a petition

2

in accordance with board regulations. The petition must set

3

forth in detail the pertinent facts and the reasons why the

4

facts constitute the alleged breach. The board will review any

5

petition filed under this section and take whatever action, if

6

any, it deems appropriate.

7

(g)  Effect of the trusteeship.--After issuance of an order

8

to appoint a trustee, the former or suspended principal or slot

9

machine licensee may not exercise any of its privileges, collect

10

or receive any debts and pay out, sell, assign or transfer any

11

of its property to anyone without prior approval of the

12

appointed trustee and the board.

13

(h)  Disposition of net income.--During the period of

14

trusteeship, net income shall be deposited in an escrow account

15

maintained for that purpose. Payment of net income during the

16

period of trusteeship may not be made by the trustee without the

17

prior approval of the board. A suspended or former principal or

18

slot machine licensee may request distribution of all or a

19

portion of the net income during the period of trusteeship by

20

filing a petition in accordance with board regulation. The

21

suspended or former principal or slot machine licensee shall

22

have the burden of demonstrating good cause for the distribution

23

of the net income requested.

24

(i)  Discontinuation.--The board may issue an order to

25

discontinue a trusteeship when:

26

(1)  The board determines that the cause for which the

27

trustee was appointed no longer exists.

28

(2)  The trustee has, with the prior approval of the

29

board, consummated the sale, assignment, conveyance or other

30

disposition of all the property or interest of the former

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1

principal or slot machine licensee relating to the slot

2

machine license.

3

(j)  List of approved trustees.--The board shall promulgate

4

regulations to establish a list of persons approved by the board

5

and qualified to serve as a trustee. At a minimum, the

6

regulations shall provide for the following:

7

(1)  The minimum qualifications a person must possess to

8

be approved as a trustee, which shall include qualification

9

as a principal pursuant to this part and possession of a

10

principal license.

11

(2)  The procedure for placement on or removal from the

12

approved trustee list.

13

(3)  Any other information the board deems necessary to

14

carry out the intent of this section.

15

Section 11.1.  Title 4 is amended by adding a chapter to

16

read:

17

CHAPTER 13A

18

TABLE GAMES

19

Subchapter

20

A.  General Provisions

21

B.  Table Games Authorized

22

C.  Table Game Operations

23

D.  (Reserved)

24

E.  Table Game Testing and Certification

25

F.  (Reserved)

26

G.  Table Game Taxes and Fees

27

SUBCHAPTER A

28

GENERAL PROVISIONS

29

Sec.

30

1301A.  (Reserved).

- 135 -

 


1

1302A.  Regulatory authority.

2

1303A.  Temporary table game regulations.

3

1304A.  Commonwealth resident employment goals.

4

§ 1301A.  (Reserved).

5

§ 1302A.  Regulatory authority.

6

The board shall promulgate regulations:

7

(1)  Establishing standards and rules for table games,

8

table game devices or associated equipment, including

9

standards distinguishing electronic and nonelectronic table

10

games. The standards shall provide for any new table games

<--

11

and variations or composites of approved table games,

<--

12

provided the Pennsylvania Gaming Control Board determines the  

13

new table game, or any variations or composites or other

<--

14

approved table games are suitable for use after a test or

<--

15

experimental period under the terms and conditions as the

16

Pennsylvania Gaming Control Board may deem appropriate.

17

(2)  Establishing standards to govern the conduct of

18

table games and the system of wagering associated with table

19

games, including the maintenance of financial books, records

20

and audits.

21

(2.1)  Establishing standards for the daily observation

22

of certificate holder counting and recordation processes for

23

cash, cash equivalents and other representations of value

24

received in the conduct of table games.

25

(3)  Establishing patron notice requirements pertaining

26

to minimum and maximum wagers on table games. Minimum and

27

maximum wagers may be adjusted from time to time by the

<--

28

certificate holder in the normal course of conducting table

29

games, except that changes in minimum wagers at any given

30

table shall not apply to persons already engaged in wagering

- 136 -

 


1

at that table game when the minimum wager is changed, unless

<--

2

30 minutes' notice is provided to each player at that table

<--

3

game.

<--

4

(4)  Requiring each certificate holder to:

5

(i)  Provide written information at each operational

6

gaming table about table game rules, payoffs or winning

7

wagers and other information to each player as the board

8

may require.

9

(ii)  Provide specifications approved by the board

10

under section 1207(11) (relating to regulatory authority

11

of board) to integrate and update the licensed facility's

12

surveillance system to cover all areas where table games

13

are conducted. The specifications shall include

14

provisions providing the board and other persons

15

authorized by the board with onsite access to the system

16

or its signal.

17

(iii)  Designate one or more locations within the

18

licensed facility to conduct table games.

19

(iv)  Ensure that visibility in a licensed facility

20

is not obstructed in any way that could interfere with

21

the ability of the certificate holder, the board and

22

other persons authorized by the board to oversee the

23

conduct of table games.

24

(v)  Integrate the licensed facility's count room for

25

slot machine and table game operations to ensure maximum

26

security of the counting and storage of cash, cash

27

equivalents and other representations of value used in

<--

28

the conduct and operation of table games as approved by

29

the board.

30

(vi)  Equip each gaming table with a sign indicating

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1

the permissible minimum and maximum wagers at the gaming

2

table.

3

(vii)  Adopt policies or procedures to prohibit any

4

table game device, equipment or supplies from being

5

possessed, maintained or exhibited by any person on the

6

premises of a licensed facility except in the areas of a

7

licensed facility where the conduct of table games is

8

authorized or in a restricted area designated to be used

9

for the inspection, service, repair or storage of the

10

table games, table game devices or associated equipment

11

or supplies by the certificate holder.

12

(viii)  Equip all drop boxes in which cash, cash

13

equivalents, fill slips, credit slips, inventory slips or

14

other representations of value are deposited at the

15

gaming tables, and all areas where drop boxes are kept

16

while in use, with two locking devices or keys, of which

17

one locking device or key shall be under the exclusive

18

control of the board, and the second locking device or

19

key shall be under the exclusive control of the

20

certificate holder. The drop boxes shall be brought into

21

or removed from an area where table games are conducted

22

or locked or unlocked in accordance with procedures

23

established by the board.

24

(ix)  Designate secure locations for the inspection

25

and storage of dice, cards, tiles, dominoes, chips and

26

other representations of value used in the conduct of

27

table games as may be approved by the board.

28

(5)  Establishing the size and uniform color by

29

denomination of all chips used in the conduct of table games

30

and a policy for the use of promotional or commemorative

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1

chips. All types of chips shall be approved by the board

2

prior to being used for play at a table game at a licensed

3

facility.

4

(5.1)  Establishing the procedure to be used by a

5

certificate holder to determine and extract a rake for the

6

purposes of deriving gross table game revenue. The rake may

7

be calculated as a percentage or a flat fee from nonbanking

8

table games.

9

(6)  Establishing minimum standards relating to the

10

acceptance of tips or gratuities by dealers and croupiers at

11

a table game, including the requirement that tips or

12

gratuities be placed in a common pool for complete

13

distribution pro rata among all dealers and croupiers.

14

Nothing in this paragraph shall prohibit a certificate holder

15

from adopting a formal policy relating to acceptance of tips

16

and gratuities, provided that the policy meets the minimum

17

standard established by the board under this paragraph.

18

(7)  Establishing the minimal proficiency requirements

19

for individuals to successfully complete a course of training

20

at an approved school under Chapter 17 (relating to gaming

21

schools). The regulations shall not prohibit a certificate

22

holder from establishing a course of training for its table

23

game employees or prohibit a certificate holder from offering

24

employment to an individual who has not attended or completed

25

a course of instruction at a gaming school and shall require

26

a certificate holder that elects to train its employees to

27

submit a detailed summary of the training program to the

28

board and to demonstrate the adequacy of the training.

29

(8)  Permitting certificate holders to request

30

authorization to conduct, and to conduct, temporary table

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1

game tournaments or other temporary table game contests in

2

which players compete against one another for cash or prizes

3

and establishing the practices and procedures governing the

4

conduct of the tournaments or contests. The number of

5

approved temporary tournament or contest table games shall

6

not be counted toward the maximum number of table games

7

authorized by the certificate holder's table game operation

8

certificate.

9

(9)  Designating an employee to approve or deny a

10

certificate holder's request to decrease the number of slot

11

machines in its licensed facility if the slot machine

12

licensee seeks to reduce the number of slot machines by less

13

than 2%. Designated approval for reduction of slot machines

14

shall not exceed 2% in total regardless of the number of

15

requests a slot machine licensee submits for approval.

16

§ 1303A.  Temporary table game regulations.

17

(a)  Promulgation.--In order to facilitate the prompt

18

implementation of this chapter, regulations promulgated by the

19

board shall be deemed temporary regulations which shall expire

20

not later than two years following the publication of the

21

temporary regulation. The board may promulgate temporary

22

regulations not subject to:

23

(1)  Sections 201, 202 and 203 of the act of July 31,

24

1968 (P.L.769, No.240), referred to as the Commonwealth

25

Documents Law.

26

(2)  The act of June 25, 1982 (P.L.633, No.181), known as

27

the Regulatory Review Act.

28

(3)  Sections 204(b) and 301(10) of the act of October

29

15, 1980 (P.L.950, No.164), known as the Commonwealth

30

Attorneys Act.

- 140 -

 


1

(b)  Expiration.--The board's authority to adopt temporary

2

regulations in subsection (a) shall expire two years after the

3

effective date of this section. Regulations adopted after this

4

period shall be promulgated as provided by law.

5

(c)  Temporary regulations.--The board shall begin publishing

6

temporary regulations governing table game rules, licensing of

7

manufacturers and suppliers and surveillance standards in the

8

Pennsylvania Bulletin no later than February 1, 2010.

9

§ 1304A.  Commonwealth resident employment goals.

10

(a)  Employment opportunities.--It is the goal of the General

11

Assembly that the board promote and ensure the availability of

12

employment opportunities for Commonwealth residents in

13

operations related to or associated with table game operations

14

as authorized in this chapter. The board shall work with each

15

certificate holder to ensure the representation of Commonwealth

16

residents employed by a certificate holder's table games

17

operation. It is the goal of the Commonwealth that Commonwealth

18

residents comprise at least 85% of each certificate holder's

19

employees related to or associated with table games by the end

20

of the third year following commencement of the conduct of table

21

games at each certificate holder's licensed facility.

22

(b)  Study.--The board shall conduct an annual study to

23

ascertain whether each certificate holder has taken effective

24

and meaningful action to enhance the number of Commonwealth

25

residents employed in positions related to or associated with

26

table games at licensed facilities. The first study shall be

27

completed one year following the issuance of the first table

28

game operation certificate. Each annual study shall contain

29

recommendations which the board determines appropriate. The

30

study shall be submitted to the chairman and minority chairman

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1

of the standing committees of the Senate and of the House of

2

Representatives with jurisdiction over this part.

3

SUBCHAPTER B

4

TABLE GAMES AUTHORIZED

5

Sec.

6

1311A.  Authorization to conduct table games.

7

1312A.  Petition requirements.

8

1313A.  Prohibitions.

9

1314A.  Table game authorization hearing process; public input

10

hearings.

11

1315A.  Standard for review of petitions.

12

1316A.  Timing initial table game authorizations.

13

§ 1311A.  Authorization to conduct table games.

14

(a)  Authorization to conduct.--Notwithstanding any other

15

provision of law to the contrary, the board may authorize a slot

16

machine licensee to conduct table games, the conduct of contests

17

or tournaments involving table games and the system of wagering

18

associated with the conduct of table games at the slot machine

19

licensee's licensed facility. Authorization to conduct table

20

games shall be contingent upon the slot machine licensee's

21

agreement to ensure the conduct of gaming in accordance with

22

this part and any other conditions established by the board.

23

Nothing in this part shall be construed to create a separate

24

license governing the conduct of table games by licensed

25

entities within this Commonwealth.

26

(b)  Number of authorized table games.--

27

(1)  Each Category 1 and Category 2 slot machine licensee

28

awarded a table game operation certificate may be authorized

29

by the board to operate up to 200 table games at any one time

30

at the Category 1 or Category 2 licensed facility.

- 142 -

 


1

(2)  Each Category 3 slot machine licensee awarded a

2

table game operation certificate may be authorized by the

3

board to operate up to 75 table games at any one time at the

4

Category 3 licensed facility.

5

(c)  Additional authorization.--Notwithstanding subsection

6

(b), a slot machine licensee awarded a table game operation

7

certificate may, with board approval, exceed the total number of

8

table games authorized in the table game operation certificate

9

to conduct contests or tournaments at locations at the licensed

10

facility as determined pursuant to section 1321A (relating to

11

authorized locations for operation).

12

§ 1312A.  Petition requirements.

13

(a)  General rule.--A slot machine licensee may seek approval

14

to conduct table games by filing a petition with the board.

15

(b)  Petition contents.--A petition seeking authorization to

16

conduct table games shall include the following:

17

(1)  The name, business address and contact information

18

of the petitioner.

19

(2)  The name and business address, job title and a

20

photograph of each principal and key employee of the

21

petitioner who will be involved in the conduct of table games

22

and who is not currently licensed by the board.

23

(3)  An itemized list of the number and types of table

24

games for which authorization is being sought.

25

(4)  The estimated number of full-time and part-time

26

employment positions that will be created at the licensed

27

facility if table games are authorized and an updated hiring

28

plan pursuant to section 1510 (relating to labor hiring

29

preferences) which outlines the petitioner's plan to promote

30

the representation of diverse groups and Commonwealth

- 143 -

 


1

residents in the new employment positions.

2

(5)  A brief description of the economic benefits

3

expected to be realized by the Commonwealth, its

4

municipalities and its residents if table games are

5

authorized.

6

(6)  The details of any financing obtained or that will

7

be obtained to fund an expansion or modification of the

8

licensed facility to accommodate table games.

9

(7)  Information and documentation concerning financial

10

background and resources, as the board may require, to

11

establish by clear and convincing evidence the financial

12

stability, integrity and responsibility of the petitioner.

13

(8)  Information and documentation, as the board may

14

require, to establish by clear and convincing evidence that

15

the petitioner has sufficient business ability and experience

16

to create and maintain a successful table game operation. In

17

making this determination, the board may consider the results

18

of the petitioner's slot machine operation, including

19

financial information, employment figures and capital

20

investment.

21

(9)  Information and documentation, as the board may

22

require, to establish by clear and convincing evidence that

23

the petitioner has the financial ability to pay the

24

authorization fee under section 1361A (relating to table game

25

authorization fee).

26

(10)  Detailed site plans identifying the petitioner's

27

proposed table game area within the licensed facility or any

28

proposed temporary facility.

29

(11)  Other information as the board may require.

30

(c)  Confidentiality.--Information submitted to the board

- 144 -

 


1

under subsection (b)(6), (7), (9), (10) and (11) may be

2

considered confidential by the board if the information would be

3

confidential under section 1206(f) (relating to board minutes

4

and records).

5

§ 1313A.  Prohibitions.

6

(a)  Slot machine licensee.--No slot machine licensee that is

7

required as a condition of slot machine licensure to make annual

8

payments to a municipality or municipal authority for an

9

economic development project, including any project enumerated

10

in the act of July 25, 2007 (P.L.342, No.53), known as

11

Pennsylvania Gaming Economic Development and Tourism Fund

12

Capital Budget Itemization Act of 2007, may submit a petition

13

under section 1312A (relating to petition requirements) until a

14

written agreement governing the terms of the payments, including

15

the date on which the payments shall be made, the amount of each

16

annual payment and the duration of the annual payments, is

17

executed between the slot machine licensee and the municipality

18

or municipal authority.

19

(b)  Duties of board.--The board shall not accept or approve

20

a petition submitted by any slot machine licensee subject to

21

this section and prohibited by subsection (a) until such written

22

agreement is submitted by the slot machine licensee to the

23

board, which shall ensure the written agreement meets the

24

requirements of this section and all conditions relating to the

25

economic development project imposed by the board when awarding

26

the slot machine license to the licensee are satisfied and until

27

the municipality or municipal authority confirms to the board in

28

writing that the slot machine licensee has made the first

29

required payment under the written agreement.

30

(c)  Construction.--Nothing in this section shall be

- 145 -

 


1

construed to relieve a slot machine licensee of its legal

2

obligation to make any required annual payments referenced under

3

this section if the slot machine licensee elects not to petition

4

the board for authorization to conduct table games.

5

§ 1314A.  Table game authorization hearing process; public input

6

hearings.

7

(a)  General rule.--The board's consideration and resolution

8

of all petitions to conduct table games shall be conducted in

9

accordance with 2 Pa.C.S. (relating to administrative law and

10

procedure) or with procedures adopted by order of the board.

11

Notwithstanding the requirements of 2 Pa.C.S. §§ 504 (relating

12

to hearing and record) and 505 (relating to evidence and cross-

13

examination) as they relate to the conduct of oral hearings, the

14

board may adopt procedures to provide parties before it with a

15

documentary hearing, and the board may resolve disputed material

16

facts without conducting an oral hearing where constitutionally

17

permissible.

18

(b)  Public input hearing requirement.--

19

(1)  Prior to granting a petition for a slot machine

20

licensee to conduct table games under this chapter, the board

21

shall hold at least one public input hearing on the matter,

22

in the municipality where the petitioner's licensed facility

23

is located.

24

(2)  A list of all witnesses scheduled to testify at a

25

public input hearing shall be posted on the board's Internet

26

website at least seven days prior to the hearing. The list

27

shall be updated at least three days prior to the hearing.

28

Additional witnesses shall be posted on the board's Internet

29

website as they are added to the list.

30

§ 1315A.  Standard for review of petitions.

- 146 -

 


1

The board shall grant a petition and authorize the petitioner

2

to operate table games if the petitioner establishes, by clear

3

and convincing evidence, all of the following:

4

(1)  The petitioner's slot machine license is in good

5

standing with the board.

6

(2)  The petitioner conducting table games will have a

7

positive economic impact on the Commonwealth, its

8

municipalities and residents through increased revenues and

9

employment opportunities.

10

(3)  The petitioner possesses or has secured adequate

11

financing, if necessary, to:

12

(i)  Fund an expansion or modification of the

13

petitioner's licensed facility to accommodate table

14

games.

15

(ii)  Pay the authorization fee under section 1361A

16

(relating to table game authorization fee).

17

(4)  The petitioner has the financial stability,

18

integrity and responsibility to conduct table games.

19

(5)  The petitioner has sufficient business ability and

20

experience to create and maintain a successful table game

21

operation.

22

(6)  The petitioner's proposed internal and external

23

security and proposed surveillance measures within the area

24

of the licensed facility where the petitioner seeks to

25

conduct table games are adequate.

26

(7)  The petitioner agrees to maintain the same number of

27

slot machines in operation authorized by the board on October

<--

28

1, 2009, and agrees not to decrease the number of slot

29

machines in its licensed facility by more than 2% without

30

formal board approval.

- 147 -

 


1

(8)  If the petitioner is a Category 3 slot machine

2

licensee, the petitioner agrees to invest at least

3

$30,000,000 in capital improvements over a five-year period

4

at the licensed facility.

5

§ 1316A.  Timing initial table game authorizations.

6

The board shall approve or deny a petition filed under

7

section 1312A (relating to petition requirements) within 90 days

8

of the effective date of this chapter and no later than 60 days

9

after receipt of the filing.

10

SUBCHAPTER C

11

CONDUCT OF TABLE GAMES

12

Sec.

13

1321A.  Authorized locations for operation.

14

1322A.  Commencement of table game operations.

15

1323A.  Table game operation certificate.

16

1324A.  Condition of continued operation.

17

1325A.  Table game accounting controls and audits.

18

1326A.  Wagering policies.

19

1327A.  Key employees and occupation permits.

20

1328A.  Amendment of statement of conditions.

21

1329A.  Application of Clean Indoor Air Act.

22

1329.1A.  Application of Liquor Code.

23

§ 1321A.  Authorized locations for operation.

24

(a)  Restriction.--Except as provided under subsection (b), a

25

certificate holder shall only be permitted to operate table

26

games at the licensed facility.

27

(a.1)  Temporary facilities.--The board may permit a

28

certificate holder to conduct table games at a temporary

29

facility which is physically connected to, attached to or

30

adjacent to and on the same parcel of land as a permanent

- 148 -

 


1

facility for a period not to exceed 24 months.

2

(b)  Powers and duties of board.--Upon petition made by a

3

table game operation certificate holder, the board may determine

4

the suitability of a hotel for the conduct of table games. The

5

board may authorize the executive director to designate specific

6

areas of the hotel, including conference rooms, ballrooms or

7

other rooms, in which the certificate holder may conduct table

8

games for the purposes of temporary contests or tournaments. No

9

certificate holder may be approved to conduct table games in a

10

hotel unless the areas to be designated are equipped with

11

adequate security and surveillance equipment to ensure the

12

integrity of the conduct of a table game, contest or tournament.

13

The petition shall include the number of table games the

<--

14

certificate holder intends to operate during the temporary

15

contest or tournament. The certificate holder shall notify the

<--

16

board of the number of table games that the certificate holder

17

intends to operate during a temporary contest or tournament, and

18

the board shall designate an employee to approve or deny the

19

request. In granting authorization under this section, the board

20

shall be prohibited from:

21

(1)  Imposing any criteria or requirements regarding the

22

contents or structure of a hotel which are unrelated to the

23

conduct of table games.

24

(2)  Authorizing the placement or operation of slot

25

machines in a hotel.

26

(3)  Counting the number of temporary contest or

27

tournament table games toward the number of approved tables

28

in the table game operation certificate.

29

§ 1322A.  Commencement of table game operations.

30

A certificate holder may not operate or offer table games for

- 149 -

 


1

play at a licensed facility until:

2

(1)  The certificate holder is in compliance in all

3

respects with the requirements of this part.

4

(2)  The board has approved the certificate holder's

5

internal controls and audits protocols under section 1325A

6

(relating to table game accounting controls and audits).

7

(3)  The certificate holder's table game employees, where

8

applicable, are licensed, permitted or otherwise authorized

9

by the board to perform their respective duties.

10

(4)  The certificate holder is prepared in all respects

11

to offer table game play to the public at the licensed

12

facility.

13

(5)  The certificate holder has implemented necessary

14

internal and management controls and security arrangements

15

and surveillance systems for the conduct of table games.

16

(6)  The certificate holder has paid the authorization

17

fee in accordance with section 1361A (relating to table game

18

authorization fee).

19

(7)  The certificate holder has obtained authorization

<--

20

pursuant to an act of the General Assembly, following the

21

effective date of this section, and has compensated the

22

Commonwealth for no less than the $5,000,000 for the State

23

lands occupied by the licensed facility.

24

§ 1323A.  Table game operation certificate.

25

The following shall apply:

26

(1)  A table game operation certificate shall be in

27

effect unless suspended or revoked by the board or not

28

renewed by the certificate holder or by the board upon good

29

cause by the board consistent with the requirements of this

30

part.

- 150 -

 


1

(2)  The table game operation certificate shall include

2

an itemized list by type and number of the table games

3

approved by the board and permitted in the particular

4

licensed facility. The certificate holder may increase or

5

decrease the number of table games permitted at the licensed

6

facility, change the type of table games played at a

7

particular table or change the configuration of table games

8

upon notice to the board and approval by a designated

9

employee of the board. Unless approved by the board, the

10

total number of table games in operation at the licensed

11

facility may not exceed the number authorized in the table

12

games operation certificate.

13

(3)  Certificate holders shall be required to update the

14

information in their initial table games petition at times

15

prescribed by the board.

16

(4)  No additional authorization fee shall be imposed for

17

renewal of a table game operation certificate.

18

§ 1324A.  Condition of continued operation.

19

As a condition of continued operation, a certificate holder

20

shall agree to maintain all books, records and documents

21

pertaining to table games in a manner and location within this

22

Commonwealth as approved by the board. All books, records and

23

documents related to table games shall:

24

(1)  be segregated by separate accounts within the slot

25

machine licensee's operations books, records and documents,

26

except for any books, records or documents that are common to

27

both operations;

28

(2)  be immediately available for inspection upon request

29

of the board, the bureau, the Pennsylvania State Police, the

30

Attorney General or agents thereof during all hours of

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1

operation of the licensed facility in accordance with

2

regulations promulgated by the board; and

3

(3)  be maintained for a period as the board, by

4

regulation, may require.

5

§ 1325A.  Table game accounting controls and audits.

6

(a)  Approval.--Prior to the commencement of table game

7

operations, a certificate holder shall submit to the board for

8

approval all proposed site plans, internal control systems and

9

audit protocols for the certificate holder's table game

10

operations.

11

(b)  Minimum requirements.--A certificate holder's internal

12

controls and audit protocols shall:

13

(1)  Safeguard its assets and revenues, including the

14

recording of cash and evidences of indebtedness related to

15

table games.

16

(2)  Provide for reliable records, accounts and reports

17

of any financial event that occurs in the conduct of table

18

games, including reports to the board related to the table

19

games.

20

(3)  Provide for accurate and reliable financial records

21

related to table games.

22

(4)  Establish procedures for all the following:

23

(i)  The receipt, storage and disbursal of chips,

24

cash and cash equivalents used in table games.

25

(ii)  Check cashing.

26

(iii)  The redemption of chips, cash equivalents and

27

other representations of value used in table games and

28

the payoff of jackpots.

29

(iv)  The recording of transactions pertaining to

30

table games.

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1

(5)  Establish procedures for the collection and security

2

of moneys at the gaming tables.

3

(6)  Establish procedures for the transfer and recording

4

of chips between the gaming tables and the cashier's cage.

5

(7)  Establish procedures for the transfer of drop boxes

6

for table games from the gaming tables to the count room.

7

(8)  Establish procedures and security for the counting

8

and recording of table game revenue.

9

(9)  Establish procedures for the security, storage and

10

recording of cash, chips and cash equivalents utilized in

11

table games.

12

(10)  Establish procedures and security standards for the

13

handling and storage of table game devices.

14

(11)  Establish procedures and rules governing the

15

conduct of each table game and the responsibility of

16

employees related to table games.

17

(12)  Establish procedures for the collection and

18

recording of revenue from poker when it is a nonbanking game,

19

including the types of rake utilized and the methodology for

20

calculating the amount of permissible rake.

21

(13)  Ensure that any wagering permitted in a table game

22

is implemented only in accordance with the management's

23

general or specific authorization, as approved by the board.

24

(14)  Ensure the proper and timely accounting of gross

25

table game revenue and the calculation of gross table game 

26

revenue, fees and taxes based on the gross table game revenue

27

and maintain accountability for assets.

28

(15)  Ensure that recorded accountability for assets is

29

compared with actual assets at reasonable intervals and that

30

appropriate action is taken with respect to any

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1

discrepancies.

2

(16)  Ensure that all functions, duties and

3

responsibilities are appropriately segregated and performed

4

in accordance with sound financial practices by competent,

5

qualified employees.

6

(17)  Permit use of its licensed facility by the board,

7

the bureau and other persons authorized by the board to

8

facilitate their ability to perform regulatory and oversight

9

functions under this chapter.

10

(c)  Submission to board.--The submission required under

11

subsection (a) shall include a detailed description of the

12

certificate holder's administrative and accounting procedures

13

related to table games, including its written system of internal

14

controls. Each written system of internal controls shall

15

include:

16

(1)  An organizational chart depicting appropriate

17

functions and responsibilities of employees involved in both

18

the slot machine operations and table game operations.

19

(2)  A description of the duties and responsibilities of

20

each position shown on the organizational chart.

21

(3)  The record retention policy of the certificate

22

holder.

23

(4)  The procedure to be utilized to ensure that assets

24

are safeguarded, including mandatory count procedures.

25

(5)  A detailed narrative description of the

26

administrative and accounting procedures in place to ensure

27

compliance with the requirements of section 1326A (relating

28

to wagering policies).

29

(6)  A statement signed by the certificate holder's chief

30

financial officer or other competent person attesting that

- 154 -

 


1

the officer believes, in good faith, that the system

2

satisfies the requirements of this section.

3

(d)  Review.--Prior to authorizing a certificate holder to

4

conduct table games, the board shall review the system of

5

internal controls submitted under subsection (c) to determine

6

whether it conforms to the requirements of this part and whether

7

it provides adequate and effective controls for the conduct of

8

table games.

9

§ 1326A.  Wagering policies.

10

(a)  Acceptance of checks.--A certificate holder may accept a

11

check from a patron in exchange for cash or chips. The

12

certificate holder shall present each check for payment to the

13

financial institution upon which the check is drawn within ten

14

days of receipt by the certificate holder. No third party checks

15

shall be permitted.

16

(b)  Credit and other financial transactions permitted.-–A

17

certificate holder may make credit card advances and withdrawals

18

available to patrons at its licensed facility. All fees charged

19

for cash advances, check cashing, credit card withdrawals and

20

the conversion of cash equivalents shall be disclosed.

21

Notwithstanding section 1504 (relating to wagering on credit), a

22

certificate holder may extend credit to patrons for the purpose

23

of playing slot machines or table games in accordance with this

24

section.

25

(c)  Credit applications.-–Each application for credit

26

submitted by a patron to a certificate holder shall be

27

maintained in a credit file. The application shall include the

28

patron's name, address, telephone number, comprehensive bank

29

account information, the requested credit limit, the patron's

30

approximate amount of current indebtedness, the amount and

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1

source of income in support of the application, the patron's

2

signature on the application and a certification of truthfulness

3

which shall be subject to 18 Pa.C.S. § 4903 (relating to false

4

swearing). The certification holder shall notify each applicant

5

that, as a condition of receiving credit, the certificate holder

6

will verify identity and indebtedness information through a

7

credit bureau, casino credit bureau and, if appropriate, through

8

direct contact with other certificate holders.

9

(d)  Credit application verification.-–Prior to approving an

10

application for credit, a certificate holder shall verify:

11

(1)  The identity, creditworthiness and indebtedness

12

information on the application by conducting a comprehensive

13

review of the information submitted with the application and

14

any information regarding the patron's credit activity at

15

other licensed facilities which the certificate holder may

16

obtain through a casino credit bureau and, if appropriate,

17

through direct contact with other licensed facilities.

18

(2)  That the applicant's name is not included on an

19

exclusion list under section 1514 (relating to regulation

20

requiring exclusion of certain persons) or 1516 (relating to

21

list of persons self excluded from gaming activities) or a

22

voluntary credit suspension list under subsection (h).

23

(3)  The applicant's average bank balance through direct

24

contact with a casino credit bureau, credit agency or with

25

the applicant's bank.

26

(e)  Establishment of credit.-–Each applicant's credit limit

27

shall be approved by any two or more employees of the

28

certificate holder holding the job positions of credit manager,

29

assistant credit manager, credit shift manager, credit executive

30

or a key employee in a direct reporting line above the manager

- 156 -

 


1

or credit manager. The approval shall be recorded in the

2

applicant's credit file and shall include the reasons and

3

information relied on for the approval of credit and

4

verification by the employees approving the applicant's credit

5

limit. Increases to an individual's credit limit may be approved

6

following a written request from the individual and

7

reverification of an individual's credit information.

8

(f)  Recordkeeping.-–Detailed information pertaining to all

9

transactions affecting an individual's outstanding indebtedness

10

to a certificate holder shall be recorded in chronological order

11

in the individual's credit file.

12

(g)  Suspension of credit.-–A certificate holder may reduce

13

an individual's credit limit or suspend credit to an individual

14

upon consideration of information affecting the individual's

15

creditworthiness or the individual's credit activities at the

16

licensed facility or another licensed facility. Any individual

17

may request a certificate holder to voluntarily suspend the

18

individual's credit. Each certificate holder shall inform the

19

board when an individual requests a voluntary suspension of

20

credit and shall provide the board with all information

21

necessary to maintain the voluntary credit suspension list under

22

subsection (h).

23

(h)  Voluntary credit suspension list.--The board shall

24

maintain a voluntary credit suspension list of all persons who

25

have requested voluntary suspension of credit privileges and

26

shall provide the list on a continuous basis to the credit

27

department of each certificate holder. An individual may request

28

placement on the voluntary credit suspension list by submitting

29

to the board the individual's name, address and date of birth.

30

The individual does not need to provide a reason for the

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1

request. Notwithstanding any other provision of law to the

2

contrary, the board's list of individuals who have had credit

3

privileges voluntarily suspended shall not be open to public

4

inspection, and neither the board nor the credit department of a

5

certificate holder shall divulge the names on this list to any

6

person or entity other than those provided for in this

7

subsection. To remove an individual's name from the list, the

8

individual shall submit a request to the board, which shall

9

remove the individual from the list and inform the credit

10

department of each certificate holder not later than three

11

business days after the submission board's receipt of the

<--

12

request.

13

(i)  Liability.--A certificate holder or employee thereof

14

shall not be liable to any individual on the voluntary credit

15

suspension list or to any other party in any judicial proceeding

16

for any harm, monetary or otherwise, which may arise as a result

17

of:

18

(1)  the failure of a certificate holder to restore

19

credit privileges to an individual on the voluntary credit

20

suspension list; or

21

(2)  otherwise permitting an individual on the voluntary

22

credit suspension list to engage in gaming activity in the

23

licensed facility while on the voluntary credit suspension

24

list.

25

(j)  Checks.--Notwithstanding the provisions of any law to

26

the contrary, checks cashed in conformity with the requirements

27

of this section or 13 Pa.C.S. Div. 3 (relating to negotiable

28

instruments) shall be valid instruments, enforceable at law in

29

the courts of this Commonwealth. Any check cashed, transferred,

30

conveyed, given or accepted in violation of this section shall

- 158 -

 


1

be invalid and unenforceable for the purposes of collection by a

2

certificate holder but shall be included in the calculation of

3

gross table game revenue.

4

(k)  Tax liability.--Credit extended pursuant to this section

5

may not be claimed as a deduction, credit or any other type of

6

reduction or offset against any tax imposed by this part or the

7

act of March 4, 1971 (P.L.6, No.2), known as the Tax Reform Code

8

of 1971.

9

§ 1327A.  Key employees and occupation permits.

10

Nothing in this part shall be construed to require any

11

individual who holds a key employee or gaming employee license

12

under Chapter 13 (relating to licensees) to obtain a separate

13

license or permit to be employed in a certificate holder's table

14

game operation authorized under this chapter.

15

§ 1328A.  Amendment of statement of conditions.

16

(a)  Amendment.--Upon granting a petition for a table game

17

operation certificate, the board shall amend the slot machine

18

licensee's statement of conditions governing the slot machine

19

license to include conditions pertaining to the requirements of

20

this part.

21

(b)  Sanctions.--A certificate holder that fails to abide by

22

this part as well as any condition contained in the licensee's

23

statement of conditions in the conduct of table games shall be

24

subject to board-imposed administrative sanctions or other

25

penalties authorized under this part.

26

§ 1329A.  Application of Clean Indoor Air Act.

27

If the board authorizes the conduct of table games in a

28

designated area other than the gaming floor, as defined in

29

section 2 of the act of June 13, 2008 (P.L.182, No.27), known as

30

the Clean Indoor Air Act, the provisions of section 3(b)(11) of

- 159 -

 


1

the Clean Indoor Air Act shall apply to that area and may

<--

2

include table games.

3

§ 1329.1A.  Application of Liquor Code.

4

The provisions of section 493(24)(ii) of the act of April 12,

5

1951 (P.L.90, No.21), known as the Liquor Code, shall also apply

6

to table games.

7

SUBCHAPTER D

8

(RESERVED)

9

SUBCHAPTER E

10

TABLE GAME TESTING AND CERTIFICATION

11

Sec.

12

1341A.  Table game device testing and certification standards.

13

§ 1341A.  Table game device testing and certification standards.

14

(a)  Use of other state standards.--Until such time as the

15

board expands the independent testing and certification facility

16

established under section 1320(b) (relating to slot machine

17

testing and certification standards), the board may determine

18

whether the table game device testing and certification

19

standards of another jurisdiction within the United States in

20

which an applicant for a manufacturer license is licensed are

21

comprehensive and thorough and provide similar adequate

22

safeguards as those required by this part. If the board makes

23

that determination, it may permit a manufacturer licensed

24

pursuant to section 1317.1 (relating to manufacturer licenses)

25

to deploy table game devices it manufactures which have met the

26

table game device testing and certification standards in another

27

jurisdiction without undergoing the full testing and

28

certification process by the board's independent testing and

29

certification facility.

30

(b)  Expansion of independent testing and certification

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1

facility.--Within one year of the effective date of this

2

chapter, the board shall expand the independent testing and

3

certification facility created under section 1320(b) to include

4

the testing and certification of table game devices. Costs

5

associated with the expansion of the facility shall be assessed

6

on the appropriate manufacturer licensed to manufacture table

7

game devices under this part in accordance with a schedule

8

adopted by the board. The expanded facility shall be made

9

available to each table game device manufacturer and supplier as

10

determined by the board.

11

SUBCHAPTER F

12

(Reserved)

13

SUBCHAPTER G

14

TABLE GAME TAXES AND FEES

15

Sec.

16

1361A.  Table game authorization fee.

17

1362A.  Table game taxes and assessment.

18

§ 1363A.  Additional table game assessment.

<--

19

§ 1361A.  Table game authorization fee.

20

(a)  Imposition.--The board shall impose on each certificate

21

holder that is a Category 1 or Category 2 slot machine licensee

22

a one-time nonrefundable authorization fee in the amount of

23

$20,000,000 and on each certificate holder that is a Category 3

24

licensee a one-time nonrefundable authorization fee in the

25

amount of $7,500,000 for the privilege of conducting table

26

games.

27

(b)  Petition deadlines.--All eligible slot machine

28

licensees, whether operational or not, must submit a petition

29

and pay the authorization fee in full by June 1, 2010. This

30

subsection shall not apply to a Category 1 or Category 3 license

- 161 -

 


1

issued under section 1307 (relating to number of slot machine

2

licenses) after June 1, 2010.

3

(c)  Payment of fee.--The fee imposed under subsection (a)

4

may be paid through an installment period established by the

5

board if the authorization fee is paid in full on or before June

6

1, 2010.

7

(d)  Failure to pay by deadline.--If a petitioner or

8

certificate holder fails to pay the authorization fee in full by

9

June 1, 2010, the board shall impose a $5,000,000 penalty and

10

may grant the petitioner or certificate holder up to a six-month

11

extension to pay any remaining authorization fee and the

12

penalty. The board may require the certificate holder to remit a

13

certain amount from the daily gross table game revenue to the

14

department until the fee and penalty are fully paid.

15

(e)  Revocation of certificate.--The board shall revoke the

16

table game operation certificate if the certificate holder fails

17

to pay the total authorization fee and the penalty prior to the

18

expiration of an extension period granted under subsection (d).

19

(f)  Petitions filed after deadline.--A petitioner filing a

20

petition after June 1, 2010, shall be required to pay an

21

additional authorization fee of $7,500,000. This subsection

22

shall not apply to a Category 1 or Category 3 slot machine

23

license issued after June 1, 2010.

24

(g)  Deposit of fees.–-Notwithstanding section 1208 (relating

25

to collection of fees and fines), all table game authorization

26

fees received by the board under subsection (a), (c) or (f) or

27

penalties received under subsection (d) and all table game

28

manufacturer and supplier license fees or manufacturer and

29

supplier renewal fees or fees for licensees issued under Chapter

30

16 (relating to junkets) shall be deposited in the General Fund.

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1

Upon receipt of the license fee by the General Fund, 10% of the 

<--

2

fee must be transferred within 30 days to the Department of

3

Military and Veteran Affairs. Such funds shall be used 50% for

4

operation of Scotland School for Veterans Children, and 50% for

5

operation of, maintenance of and improvements to veterans homes,

6

centers and schools.

7

§ 1362A.  Table game taxes and assessment.

8

(a)  Imposition.--Each certificate holder shall pay from its

9

daily gross table game revenue from the table games in operation

10

at its licensed facility on a form prescribed by the department

11

a tax of 34% 37% to be deposited into the General Fund and

<--

12

distributed as follows:

13

(1)  Thirty-four percent shall remain in the General

14

Fund.

15

(2)  One and one-half percent shall be distributed by the

16

department to the county hosting the licensed facility.

17

(3)  One and one-half percent shall be distributed by the

18

department to the municipality hosting the licensed facility.

19

(b)  Deposits and distributions.-–

20

(1)  The tax imposed under subsection (a) and any

21

interest accrued thereon shall be payable to the department

22

on a weekly basis and shall be based upon gross table game

23

revenue derived during the previous week. The department

<--

24

shall distribute moneys to the counties and municipalities

25

within a week of their receipt.

26

(2)  All funds owed to the Commonwealth, county and

<--

27

municipality under this section shall be held in trust for

28

the Commonwealth, county and municipality by the certificate

<--

29

holder until the funds are paid or transferred and

30

distributed by the department. Unless otherwise agreed to by

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1

the board, a certificate holder shall establish a separate

2

bank account to maintain table game revenue until such time

3

as the funds are paid or transferred under this section.

4

(b.1)  Disposition in certain third class counties.--

<--

5

(1)  The tax imposed by subsection (a)(2) in a county of

6

the third class with a thoroughbred racetrack shall be

7

deposited into a restricted account established in the

8

Pennsylvania Commission on Crime and Delinquency to be used

9

exclusively by the county commissioners of the third class

10

county where the facility is located for a Violent Crime Task

11

Force composed of members of county and municipal law

12

enforcement agencies to reduce gang violence, gun trafficking

13

and violence and drug-related crimes. The commissioners shall

14

appoint an advisory committee to be chaired by the district

15

attorney and composed of chiefs and directors of county and

16

municipal law enforcement agencies. The advisory committee

17

shall make recommendations to the county commissioners for

18

the priorities and expenditures of the task force. The

19

district attorney shall direct and coordinate the operations

20

and personnel of the task force.

21

(2)  The tax imposed by subsection (a)(3) in a county of

22

the third class with a thoroughbred racetrack shall be

23

distributed to the host municipality, subject, however, to

24

the budgetary limitations in this paragraph. If the licensed

25

facility and associated land are located in more than one

26

second class township, $120,000 annually shall be paid to

27

each township by the licensed gaming entity operating a

28

licensed facility and associated land located in those

29

townships, subject, however, to the budgetary limitation in

30

this paragraph. The amount allocated to the designated

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1

townships in this paragraph shall not exceed 50% of their

2

total budget for fiscal year 2009-2010, adjusted for

3

inflation in subsequent years by an amount not to exceed an

4

annual cost-of-living adjustment calculated by applying the

5

percentage change in the Consumer Price Index immediately

6

prior to the date the adjustment is due to take effect. Any

7

remaining funds shall be deposited in the restricted account

8

established by the Pennsylvania Commission on Crime and

9

Delinquency in this subsection and shall be used for the

10

purposes of implementing this subsection.

11

(3)  This subsection shall only apply to those counties

12

in which a licensed facility and associated lands are located

13

in two counties.

14

(4)  For the purposes of this subsection, the term

15

"associated land" shall mean land that is owned by and

16

adjacent to a licensed facility and other areas owned by the

17

licensed facility, including racetracks, grazing fields or

18

any other adjoining real property.

19

(c)  Deposits for property tax relief.--If, on the last day

20

of a fiscal year the balance of the Budget Stabilization Reserve

21

Fund established pursuant to section 1701-A of the act of April

22

9, 1929 (P.L.343, No.176), known as The Fiscal Code, exceeds

23

$750,000,000, the Secretary of the Budget shall certify the

24

amount in the fund and the deposits made into the General Fund

25

pursuant to subsection (a) (a)(1) shall cease and thereafter be

<--

26

deposited into the Property Tax Relief Fund established pursuant

27

to 4 Pa.C.S. § 1409 (relating to Property Tax Relief Fund).

28

§ 1363A.  Additional table game assessment.

<--

29

(a)  Additional assessment.--An assessment in an amount equal

30

to 1% of the daily gross table game revenue from each

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1

certificate holder shall be paid by each certificate holder,

2

deposited in the State Gaming Fund and quarterly distributed to

3

the county hosting the certificate holder in accordance with

4

section 1403(c)(2), except when the certificate holder is

5

located in a county of the first class in which case the amount

6

shall be deposited in an escrow account established by an

7

advisory committee organized and overseen by the board and

8

distributed pursuant to subsection (b).

9

(b)  Distributions from first class county escrow account.--

10

The advisory committee shall adopt and file with the board

11

procedures for distributions from an escrow account established

12

for a first class county under subsection (a). All funds in an

13

escrow account shall be distributed only to nonprofit

14

organizations, and no funds may be distributed out of the county

15

of the first class. No less than 70% of funds in the escrow

16

account shall be distributed to nonprofit organizations for the

17

benefit of the immediate vicinity of the licensed facility. The

18

advisory committee shall submit a biannual report to the board

19

on the distribution of funds from the escrow account.

20

(c)  Advisory committee.--An advisory committee for an escrow

21

account established for a first class county under subsection

22

(a) shall be comprised of the following members:

23

(1)  Two designees of the State Senator in whose district

24

the licensed facility is located.

25

(2)  Two designees of the State Representative in whose

26

district the licensed facility is located.

27

(3)  One designee of the municipal government.

28

(4)  One designee of the municipal council.

29

(5)  One designee of the licensed facility.

30

Section 11.2.  Sections 1401(b), 1402(a), 1402.1, 1403(b),

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1

(c)(2)(i)(D) and (E) and (ii)(D), (iv) and (3)(v), 1405 and

<--

2

1406(a) and (e) of Title 4 are amended to read:

<--

3

§ 1401.  Slot machine licensee deposits.

4

* * *

5

(b)  Initial deposit of funds.--Not later than two business

6

days prior to the commencement of slot machine operations by a

7

slot machine licensee, the slot machine licensee shall deposit

8

and maintain the [sum of $5,000,000] following sums in its

9

account to guarantee the payment of funds to the Commonwealth

10

under this part and as security for its obligations under

11

section 1405 (relating to Pennsylvania Race Horse Development

12

Fund)[.]:

13

(1)  For a Category 1 or Category 2 slot machine

14

licensee, $5,000,000.

15

(2)  For a Category 3 slot machine licensee, $1,000,000.

16

No additional deposit shall be required from a slot machine

17

licensee if a slot machine licensee is granted a certificate

18

under Chapter 13A (relating to table games).

19

* * *

20

§ 1402.  Gross terminal revenue deductions.

21

(a)  Deductions.--After determining the appropriate

22

assessments for each slot machine licensee, the department shall

23

determine costs, expenses or payments from each account

24

established under section 1401 (relating to slot machine

25

licensee deposits). The following costs and expenses shall be

26

transferred to the appropriate agency upon appropriation by the

27

General Assembly:

28

(1)  The costs and expenses to be incurred by the

29

department in administering this part at each slot machine

30

licensee's licensed facility based upon a budget submitted by

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1

the department [to and approved by the board].

2

(2)  The other costs and expenses to be incurred by the

3

department in administering this part based upon a budget

4

submitted by the department [to and approved by the board].

5

(3)  Sums necessary to repay any loans made by the

6

General Fund to the department in connection with carrying

7

out its responsibilities under this part, including the costs

8

of the initial acquisition of the central control computer

9

and any accessories or associated equipment.

10

(4)  The costs and expenses to be incurred by the

11

Pennsylvania State Police and the Office of Attorney General

12

and not otherwise reimbursed under this part in carrying out

13

their respective responsibilities under this part based upon

14

a budget submitted by the Pennsylvania State Police and the

15

Attorney General [to and approved by the board].

16

(5)  Sums necessary to repay any loans made by the

17

General Fund to the Pennsylvania State Police in connection

18

with carrying out its responsibilities under this part.

19

(6)  The costs and expenses to be incurred by the board

20

in carrying out its responsibilities under this part based

21

upon a budget approved by the board.

22

(7)  Sums necessary to repay any loans made by the

23

General Fund to the board in connection with carrying out its

24

responsibilities under this part.

25

(8)  The salaries, wages and all necessary expenses

26

incurred by the Department of the Auditor General and not

27

otherwise reimbursed under this part in conducting audits as

28

provided by law of the board or any fund created by this part

29

based upon the budget submitted by the Department of the

30

Auditor General pursuant to section 1402.1 (relating to

- 168 -

 


1

itemized budget reporting).

2

* * *

3

§ 1402.1.  Itemized budget reporting.

4

The board, department, Pennsylvania State Police [and], the

5

Attorney General and the Department of the Auditor General shall 

6

prepare and annually submit to the chairman of the

7

Appropriations Committee of the Senate and the chairman of the

8

Appropriations Committee of the House of Representatives an

9

itemized budget consisting of amounts to be appropriated out of

10

the accounts established under section 1401 (relating to slot

11

machine licensee deposits) necessary to administer this part or

12

required under section 1402(a)(8) (relating to gross terminal

13

revenue deductions).

14

§ 1403.  Establishment of State Gaming Fund and net slot machine

15

revenue distribution.

16

* * *

17

(b)  Slot machine tax.--The department shall determine and

18

each slot machine licensee shall pay a daily tax of 34% from its

19

daily gross terminal revenue from the slot machines in operation

20

at its facility and a local share assessment as provided in

21

subsection (c) into the fund. All funds owed to the Commonwealth

22

or a municipality under this section shall be held in trust by

23

the licensed gaming entity for the Commonwealth and the

24

municipality until the funds are paid or transferred and

25

distributed. Unless otherwise agreed to by the [Gaming Board]

26

board, a licensed gaming entity shall establish a separate bank

27

account to maintain [gaming proceeds] slot machine revenue until

28

such time as [they] the funds are paid or transferred under this

29

section.

30

(c)  Transfers and distributions.--The department shall:

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1

* * *

2

(2)  From the local share assessment established in

3

subsection (b), make quarterly distributions among the

4

counties hosting a licensed facility in accordance with the

5

following schedule:

6

(i)  If the licensed facility is a Category 1

7

licensed facility that is located at a harness racetrack

8

and the county, including a home rule county, in which

9

the licensed facility is located is:

10

* * *

11

(D)  (I)  A county of the third class:  Except as

12

provided in subclause (II), 2% of the gross terminal

13

revenue from each such licensed facility shall be

14

deposited into a restricted account established in

15

the Department of Community and Economic Development

16

to be used exclusively for grants for health, safety

17

and economic development projects to municipalities

18

within the county where the licensed facility is

19

located. [Municipalities that are contiguous to the

20

municipality hosting such licensed facility shall be

21

given priority by the Department of Community and

22

Economic Development in the award of such grants.] If

23

the licensed facility is located in a first class

24

township located in a county where a third class city

25

is operating under an Optional Plan B form of

26

government pursuant to the former act of April 13,

27

1972 (P.L.184, No.62), known as the Home Rule Charter

28

and Optional Plans Law, the department shall allocate

29

funds available for grants to municipalities as

30

follows: 40% shall be awarded to cities located in

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1

the county on a pro rata basis utilizing the most

2

recent United States Census bureau population figures

3

available; 35% shall be awarded to municipalities

4

contiguous to the host municipality; and 25% shall be

5

available for awards to noncontiguous municipalities

6

in the county, on a competitive basis. Grants to

7

municipalities within the county where the licensed

8

facility is located may be awarded to groups of

9

municipalities within the county to fund regional

10

projects.

11

(II)  If a licensed facility is located in

12

one of two counties of the third class where a

13

city of the third class is located in both

14

counties of the third class, the county in which

15

the licensed facility is located shall receive

16

1.2% of the gross terminal revenue to be

17

distributed as follows:  20% to the host city,

18

30% to the host county and 50% to the host county

19

for the purpose of making municipal grants within

20

the county, with priority given to municipalities

21

contiguous to the host city. The county of the

22

third class, which includes a city of the third

23

class that is located in two counties of the

24

third class and is not the host county for the

25

licensed facility, shall receive .8% of the gross

26

terminal revenue to be distributed as follows:

27

60% to a nonhost city of the third class located

28

solely in the nonhost county in which the host

29

city of the third class is also located or 60% to

30

the nonhost city of the third class located both

- 171 -

 


1

in the host and nonhost counties of the third

2

class, 35% to the nonhost county and 5% to the

3

nonhost county for the purpose of making

4

municipal grants within the county.

5

(E)  A county of the fourth class:  2% of the

6

gross terminal revenue from each such licensed

7

facility shall be distributed as follows:

8

(I)  The department shall make quarterly

9

distributions directly to each municipality

10

within the county, except the host municipality,

11

by using a formula equaling the sum of $25,000

12

plus $10 per resident of the municipality using

13

the most recent population figures provided by

14

the Department of Community and Economic

15

Development, provided, however, that the amount

16

so distributed to any municipality shall not

17

exceed 50% of its total budget for fiscal year

18

2009, adjusted for inflation in subsequent fiscal

19

years by an amount not to exceed an annual cost-

20

of-living adjustment calculated by applying any

21

upward percentage change in the Consumer Price

22

Index immediately prior to the date the

23

adjustment is due to take effect. Distributions

24

to a municipality in accordance with this

25

subclause shall be deposited into a special fund

26

which shall be established by the municipality.

27

The governing body of the municipality shall have

28

the right to draw upon the special fund provided

29

that the municipality identifies the fund as the

30

source of the expenditure. Each municipality

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1

shall annually submit a report to the Department

2

of Community and Economic Development detailing

3

the amount and purpose of each expenditure made

4

from the special account during the prior fiscal

5

year.

6

(II)  Any funds not distributed under

7

subclause (I) shall be deposited into a

8

restricted account established in the Department

9

of Community and Economic Development to be used

10

exclusively for grants to the county, to economic

11

development authorities or redevelopment

12

authorities within the county for grants for

13

economic development projects, infrastructure

14

projects, job training, community improvement

15

projects, other projects in the public interest

16

and reasonable administrative costs. However, the

17

administrative costs shall not exceed 4% of the

18

gross terminal revenue received by the county of

19

the fourth class annually from the licensed

20

facility. Notwithstanding the provisions of the

21

act of February 9, 1999 (P.L.1, No.1), known as

22

the Capital Facilities Debt Enabling Act, grants

23

made under this clause may be utilized as local

24

matching funds for other grants or loans from the

25

Commonwealth.

26

* * *

27

(ii)  If the licensed facility is a Category 1

28

licensed facility and is located at a thoroughbred

29

racetrack and the county in which the licensed facility

30

is located is:

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1

* * *

2

(D)  A county of the third class:  1% of the

3

gross terminal revenue to the county hosting the

4

licensed facility from each such licensed facility.

5

An additional 1% of the gross terminal revenue to the

6

county hosting the licensed facility from each such

7

licensed facility for the purpose of municipal grants

8

within the county in which the licensee is located.

9

Where a licensed facility is located in a county of

10

the third class and owns land which is located in a

11

county of the fifth class that is owned by and

12

adjacent to the licensed facility and other areas

13

owned by the licensed facility, including racetracks,

14

grazing fields or any other adjoining real property,

15

the county of the fifth class shall receive a portion

16

of the gross terminal revenue distributed under this

17

clause in accordance with subparagraph (vi) as if

18

such land were part of the licensed facility.

19

* * *

20

(iv)  If the facility is a Category 3 licensed 

<--

21

facility, 2% of the gross terminal revenue from each such

22

licensed facility shall be deposited into a restricted

23

account established in [the Department of Community and

24

Economic Development] the Commonwealth Financing

25

Authority to be used exclusively for grants [to the

26

county, to economic development authorities or

27

redevelopment authorities within the county for grants

28

for economic development projects and community

29

improvement projects] or guarantees for projects in the

30

host county that qualify under 64 Pa.C.S. §§ 1551

- 174 -

 


1

(relating to Business And Our Sites Program), 1556

2

(relating to Tax Increment Financing Guarantee Program)

3

and 1558 (relating to Water Supply and Waste Water

4

Infrastructure Program).

5

* * *

6

(3)  From the local share assessment established in

7

subsection (b), make quarterly distributions among the

8

municipalities, including home rule municipalities, hosting a

9

licensed facility in accordance with the following schedule:

10

* * *

11

(v)  To a township of the second class hosting a

12

licensed facility, other than a Category 3 licensed

13

facility, 2% of the gross terminal revenue or $10,000,000

14

annually, whichever is greater, shall be paid by each

15

licensed gaming entity operating a licensed facility

16

located in the township, subject, however, to the

17

budgetary limitation in this subparagraph. The amount

18

allocated to the designated municipalities shall not

19

exceed 50% of their total budget for fiscal year

20

2003-2004, adjusted for inflation in subsequent years by

21

an amount not to exceed an annual cost-of-living

22

adjustment calculated by applying the percentage change

23

in the Consumer Price Index immediately prior to the date

24

the adjustment is due to take effect. Any remaining money

25

shall be collected by the department from each licensed

26

gaming entity and distributed in accordance with

27

paragraph (2) based upon the classification of county

28

where the licensed facility is located. Where the

29

licensed facility is other than a Category 3 and is

30

located in more than one second class township, the

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1

county commissioners of the county of the third class in

2

which the facility is located shall appoint an advisory

3

committee for the purpose of advising the county as to

4

the need for municipal grants for health, safety,

5

transportation and other projects in the public interest

6

to be comprised of two individuals from the host

7

municipality, two from contiguous municipalities within

8

the county of the third class and one from the host

9

county. Where the licensed facility is other than a

10

Category 3 and is located in a county of the third class

11

and owns land which is located in a township of the

12

second class that is located in a county of the fifth

13

class that is owned by and adjacent to the licensed

14

facility and other areas owned by the licensed facility,

15

including racetracks, grazing fields or any other

16

adjoining real property, the township of the second class

17

in the county of the fifth class shall receive a portion

18

of the gross terminal revenue distributed under this

19

subparagraph in accordance with subparagraph (x) as if

20

such land were part of the licensed facility. A county

21

other than a county of the third class in which the

22

licensed facility is located is not required to appoint

23

an advisory committee and may use funds received under

24

this subparagraph for purposes other than municipal

25

grants. In the event that the revenues generated by the

26

2% do not meet the $10,000,000 minimum specified in this

27

subparagraph, the department shall collect the remainder

28

of the minimum amount of $10,000,000 from each licensed

29

gaming entity operating a licensed facility in the

30

township, pay any balance due to the township and

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1

transfer any remainder in accordance with paragraph (2).

2

* * *

3

§ 1405.  Pennsylvania Race Horse Development Fund.

4

(a)  Fund established.--There is hereby established a

5

Pennsylvania Race Horse Development Fund within the State

6

Treasury.

7

(b)  Pennsylvania race horse improvement assessment.--[Each] 

<--

8

Except as provided in subsection (b.1), each active and 

<--

9

operating licensed gaming entity shall pay a daily assessment to

10

the Pennsylvania Race Horse Development Fund [as determined by

11

the department. Subject to the daily assessment cap established

12

under subsection (c), the licensed gaming entity's assessment

13

shall be a percentage of each licensed gaming entity's gross

14

terminal revenue, equal to an amount calculated as "A"

15

multiplied by "B", with "A" being] equal to 10% of each licensed

16

gaming entity's gross terminal revenue for that day [divided by

17

the total gross terminal revenue for that day from all licensed

18

gaming entities, and "B" being equal to 18% of that day's gross

19

terminal revenue for all active and operating Category 1

20

licensees conducting live racing].

21

(b.1)  Daily assessment.--For fiscal years 2009-2010 through

<--

22

2012-2013, each active and operating licensed gaming entity

23

shall pay a daily assessment to the Pennsylvania Race Horse

24

Development Fund equal to 12% of each licensed gaming entity's

25

gross terminal revenue for that day.

26

[(c)  Daily assessment cap.--If the resulting daily

27

assessment for a licensed gaming entity exceeds 12% of that

28

licensed gaming entity's gross terminal revenue for the day, the

29

licensed gaming entity shall pay a daily assessment of 12% of

30

its gross terminal revenue for that day.]

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1

(d)  Distributions.--In accordance with section 1406

2

(relating to distributions from Pennsylvania Race Horse

3

Development Fund), the department shall make distributions from

4

the Pennsylvania Race Horse Development Fund to each of the

5

active and operating Category 1 licensees conducting live

6

racing.

7

(e)  Report.--Category 1 licensees shall report annually to

<--

8

the board and to the respective racing commission as to how the

9

introduction and expansion of enhanced gaming and distributions

10

from the fund have fulfilled the intent of this part to enhance

11

live racing and breeding in this Commonwealth. Additionally, the

12

licensees shall be required to document plans to promote live

13

handle and daily attendance at the racetrack in the subsequent

14

year.

15

§ 1406.  Distributions from Pennsylvania Race Horse Development

16

Fund.

17

(a)  Distributions.--Funds from the Pennsylvania Race Horse

18

Development Fund shall be distributed to each active and

19

operating Category 1 licensee conducting live racing [in the

20

following manner] as follows:

21

(1)  [An amount equal to 18% of the daily gross terminal

22

revenue of each Category 1 licensee shall be distributed to

23

each active and operating Category 1 licensee conducting live

24

racing unless the daily assessments are affected by the daily

25

assessment cap provided for in section 1405(c) (relating to

26

Pennsylvania Race Horse Development Fund). In cases in which

27

the daily assessment cap affects daily assessments, the] The 

<--

28

distribution to each active and operating Category 1 licensee

29

conducting live racing for that day shall be a percentage of

30

the total daily assessments paid into the Pennsylvania Race

- 178 -

 


1

Horse Development Fund for that day equal to the gross

2

terminal revenue of each active and operating Category 1

3

licensee conducting live racing for that day divided by the

4

total gross terminal revenue of all active and operating

5

Category 1 licensees conducting live racing for that day.

6

[The] Except as provided in paragraph (2), the distributions

<--

7

to licensed racing entities from the Pennsylvania Race Horse

8

Development Fund shall be allocated as follows:

9

[(i)  Eighty percent] (i)  (A)  From licensees that

<--

10

operate at thoroughbred tracks, 80% shall be deposited

11

weekly into a separate, interest-bearing purse account to

12

be established by and for the benefit of the horsemen.

13

The earned interest on the account shall be credited to

14

the purse account. Licensees shall combine these funds

15

with revenues from existing purse agreements to fund

16

purses for live races consistent with those agreements

17

with the advice and consent of the horsemen.

18

(B)  From licensees that operate at standardbred

<--

19

tracks, 64% shall be deposited weekly into a

20

separate, interest-bearing purse account to be

21

established by and for the benefit of the horsemen.

22

The earned interest on the account shall be credited

23

to the purse account. Licensees shall combine these

24

funds with revenues from existing purse agreements to

25

fund purses for live races consistent with those

26

agreements with the advice and consent of the

27

horsemen. A minimum of one-sixth of the amount of

28

those purses shall be used for live races limited to

29

harness horses that are regularly stabled in this

30

Commonwealth, are greater than three years of age and

- 179 -

 


1

were sired by a standardbred stallion regularly

2

standing in this Commonwealth.

3

(C)  From licensees that operate at standardbred

4

tracks, 16% shall be deposited on a monthly basis

5

into the Pennsylvania Sire Stakes Fund as defined in

6

section 224 of the Race Horse Industry Reform Act.

7

(ii)  For thoroughbred tracks, 16% shall be deposited

8

on a monthly basis into the Pennsylvania Breeding Fund as

9

defined in section 223 of the Race Horse Industry Reform

10

Act. For standardbred tracks, 8% shall be deposited on a

11

monthly basis in the Pennsylvania Sire Stakes Fund as

12

defined in section 224 of the Race Horse Industry Reform

13

Act, and 8% shall be deposited on a monthly basis into a

14

restricted account in the State Racing Fund to be known

15

as the Pennsylvania Standardbred Breeders Development

16

Fund. The State Harness Racing Commission shall, in

17

consultation with the Secretary of Agriculture by rule or

18

by regulation, adopt a standardbred breeders program that

19

will include the administration of Pennsylvania Stallion

20

Award, Pennsylvania Bred Award and a Pennsylvania Sired

21

and Bred Award.

22

(iii)  Four percent shall be used to fund health and

23

pension benefits for the members of the horsemen's

24

organizations representing the owners and trainers at the

25

racetrack at which the licensed racing entity operates

26

for the benefit of the organization's members, their

27

families, employees and others in accordance with the

28

rules and eligibility requirements of the organization,

29

as approved by the State Horse Racing Commission or the

30

State Harness Racing Commission. This amount shall be

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1

deposited within five business days of the end of each

2

month into a separate account to be established by each

3

respective horsemen's organization at a banking

4

institution of its choice. Of this amount, $250,000 shall

5

be paid annually by the horsemen's organization to the

6

thoroughbred jockeys or standardbred drivers organization

7

at the racetrack at which the licensed racing entity

8

operates for health insurance, life insurance or other

9

benefits to active and disabled thoroughbred jockeys or

10

standardbred drivers in accordance with the rules and

11

eligibility requirements of that organization.

12

(2)  [(Reserved).] For fiscal years 2009-2010 through

13

2012-2013, distributions to licensed racing entities from the

<--

14

Pennsylvania Race Horse Development Fund shall be allocated

15

as follows:

16

(i)  Seventeen percent of the annual revenue

<--

17

deposited into the Pennsylvania Race Horse Development

18

Fund shall be transferred to the General Fund. The

19

remaining amount will be distributed as follows:

20

(A)  Either 4%, or $11,000,000, whichever is

21

greater, shall be used to fund health and pension

22

benefits for the members of the horsemen's

23

organizations representing the owners and trainers at

24

the racetrack at which the licensed racing entity

25

operates for the benefit of the organization's

26

members, their families, employees and others in

27

accordance with the rules and eligibility

28

requirements of the organization, as approved by the

29

State Horse Racing Commission or the State Harness

30

Racing Commission. This amount shall be deposited

- 181 -

 


1

within five business days of the end of each month

2

into a separate account to be established by each

3

respective horsemen's organization at a banking

4

institution of its choice. Of this amount, a minimum

5

of $250,000 shall be paid annually by the horsemen's

6

organization to the thoroughbred jockeys or

7

standardbred drivers organization at the racetrack at

8

which the licensed racing entity operates for health

9

insurance, life insurance or other benefits to active

10

and disabled thoroughbred jockeys or standardbred

11

drivers in accordance with the rules and eligibility

12

requirements of that organization.

13

(B)  The amount remaining after application of

14

clause (A) shall be distributed on a pro rata basis

15

as follows:

16

(I)  Seventy-eight percent of the remaining

17

amount shall be deposited weekly into a separate,

18

interest-bearing purse account to be established

19

by and for the benefit of the horsemen. The

20

earned interest on the account shall be credited

21

to the purse account. Licensees shall combine

22

these funds with revenues from existing purse

23

agreements to fund purses for live races

24

consistent with those agreements with the advice

25

and consent of the horsemen. The State Horse

26

Racing Commission and the State Harness Racing

27

Commission, in consultation with the Secretary of

28

Agriculture, shall adopt rules and regulations

29

relating to the conditions of live races, to

30

include races restricting entry to the

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1

Pennsylvania-sired or Pennsylvania-bred horse.

2

(II)  For thoroughbred tracks, the remaining

3

17% shall be deposited on a monthly basis into

4

the Pennsylvania Breeding Fund as defined in

5

section 223 of the act of December 17, 1981

6

(P.L.435, No.135), known as the Race Horse

7

Industry Reform Act. For standardbred tracks,

8

one-half of that amount shall be deposited on a

9

monthly basis in the Pennsylvania Sire Stakes

10

Fund as defined in section 224 of the Race Horse

11

Industry Reform Act, and the other half shall be

12

deposited on a monthly basis into a restricted

13

account in the State Racing Fund to be known as

14

the Pennsylvania Standardbred Breeders

15

Development Fund. The State Harness Racing

16

Commission shall, in consultation with the

17

Secretary of Agriculture by rule or by

18

regulation, adopt a standardbred breeders program

19

that will include the administration of

20

Pennsylvania Stallion Award, Pennsylvania Bred

21

Award and a Pennsylvania Sired and Bred Award.

22

(III)  Five percent shall be deposited weekly

23

into the State Racing Fund as defined in section

24

222 of the Race Horse Industry Reform Act.

25

(ii)  Category 1 licensees shall report annually to

26

the board and to the respective racing commission as to

27

how the introduction and expansion of enhanced gaming has

28

fulfilled the intent of this title to enhance live racing

29

and breeding in this Commonwealth. Additionally, the

30

licensees shall be required to document plans to promote

- 183 -

 


1

live handle and daily attendance at the racetrack in the

2

subsequent year.

3

(i)  Each week, 17% of the money in the Pennsylvania

<--

4

Race Horse Development Fund shall be transferred to the

5

General Fund.

6

(ii)  Each week, 83% of the money in the Pennsylvania

7

Race Horse Development Fund shall be distributed to each

8

active and operating Category 1 licensee conducting live

9

racing in accordance with the following formula:

10

(A)  Divide:

11

(I)  the total daily assessments paid, by

12

each active and operating Category 1 licensee

13

conducting live racing, into the Pennsylvania

14

Race Horse Development Fund for that week; by

15

(II)  the total daily assessments paid, by

16

all active and operating Category 1 licensees

17

conducting live racing, into the Pennsylvania

18

Race Horse Development Fund for that week.

19

(B)  Multiply the quotient under clause (A) by

20

the amount to be distributed under this subparagraph.

21

(iii)  The distribution under subparagraph (ii) shall

22

be allocated as follows:

23

(A)  The greater of 4% of the amount to be

24

distributed under subparagraph (ii) or $220,000 shall

25

be used to fund health and pension benefits for the

26

members of the horsemen's organizations representing

27

the owners and trainers at the racetrack at which the

28

licensed racing entity operates for the benefit of

29

the organization's members, their families, employees

30

and others in accordance with the rules and

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1

eligibility requirements of the organization, as

2

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

5

each week into a separate account to be established

6

by each respective horsemen's organization at a

7

banking institution of its choice. Of this amount, a

8

minimum of $250,000 shall be paid annually by the

9

horsemen's organization to the thoroughbred jockeys

10

or standardbred drivers organization at the racetrack

11

at which the licensed racing entity operates for

12

health insurance, life insurance or other benefits to

13

active and disabled thoroughbred jockeys or

14

standardbred drivers in accordance with the rules and

15

eligibility requirements of that organization.

16

(B)  Of the money remaining to be distributed

17

under subparagraph (ii) after application of clause

18

(A), the following disbursements shall be made:

19

(I)  For licensees that operate at

20

thoroughbred tracks, eighty-three and one-third

21

percent of the money to be distributed under this

22

clause shall be deposited on a weekly basis into

23

a separate, interest-bearing purse account to be

24

established by and for the benefit of the

25

horsemen. The earned interest on the account

26

shall be credited to the purse account. Licensees

27

shall combine these funds with revenues from

28

existing purse agreements to fund purses for live

29

races consistent with those agreements with the

30

advice and consent of the horsemen. For licensees

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1

that operate at standardbred tracks, 67 1/3%

2

shall be deposited weekly into a separate,

3

interest-bearing purse account to be established

4

by and for the benefit of the horsemen. The

5

earned interest on the account shall be credited

6

to the purse account. Licensees shall combine

7

these funds with revenues from existing purse

8

agreements to fund purses for live races

9

consistent with those agreements with the advice

10

and consent of the horsemen. A minimum of one-

11

sixth of the amount of those purses shall be used

12

for live races limited to harness horses that are

13

regularly stabled in this Commonwealth, are

14

greater than three years of age and were sired by

15

a standardbred stallion regularly standing in

16

this Commonwealth. From licensees that operate at

17

standardbred tracks, 16% shall be deposited on a

18

monthly basis into the Pennsylvania Sire Stakes

19

Fund as defined in section 224 of the Race Horse

20

Industry Reform Act.

21

(II)  For thoroughbred tracks, 16 and 2/3% of

22

the money to be distributed under this clause

23

shall be deposited on a weekly basis into the

24

Pennsylvania Breeding Fund established in section

25

223 of the act of December 17, 1981 (P.L.435,

26

No.135), known as the Race Horse Industry Reform

27

Act. For standardbred tracks, 8 and 1/3% of the

28

money to be distributed under this clause shall

29

be deposited on a weekly basis into the

30

Pennsylvania Sire Stakes Fund as defined in

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1

section 224 of the Race Horse Industry Reform

2

Act; and 8 and 1/3% of the money to be

3

distributed under this clause shall be deposited

4

on a weekly basis into a restricted account in

5

the State Racing Fund to be known as the

6

Pennsylvania Standardbred Breeders Development

7

Fund. The State Harness Racing Commission shall,

8

in consultation with the Secretary of

9

Agriculture, promulgate regulations adopting a

10

standardbred breeders program that will include

11

the administration of the Pennsylvania Stallion

12

Award, the Pennsylvania Bred Award and the

13

Pennsylvania Sired and Bred Award.

14

* * *

15

(e)  Filing of audit.--All horsemen's organizations that 

<--

16

receive funds under this section shall file annually with the

17

appropriate commission and the board an audit prepared by a

<--

18

certified public accountant of all funds received. Such filings

19

shall be open to public review. The horsemen's organizations

20

shall maintain adequate records concerning receipt and

21

distribution of funds allocated to them. All distributions under

22

this section, except for those for health and pension benefits

23

for the members of horsemen's organizations, shall be suspended

24

for any horsemen's organization that has not filed an audit as

25

required under this subsection within six months of the end of

26

the horsemen's organization's fiscal year. Any such

27

distributions suspended are appropriated to the Department of

28

Agriculture.

29

* * *

30

Section 12.  Section 1407 of Title 4 is amended by adding

- 187 -

 


1

subsections to read:

2

§ 1407.  Pennsylvania Gaming Economic Development and Tourism

3

Fund.

4

* * *

5

(e)  Annual report.--The Office of the Budget in cooperation

6

with the Department of Community and Economic Development shall

7

submit an annual report of all distribution of funds under this

8

section to the chairman and minority chairman of the

9

Appropriations Committee of the Senate, the chairman and

10

minority chairman of the Community, Economic and Recreational

11

Development Committee of the Senate, the chairman and minority

12

chairman of the Appropriations Committee of the House of

13

Representatives and the chairman and minority chairman of the

14

Gaming Oversight Committee of the House of Representatives. The

15

report shall include detailed information relating to transfers

16

made from the Pennsylvania Gaming Economic Development and

17

Tourism Fund and all reimbursements, distributions and payments

18

made under subsection (b) or the act of July 25, 2007 (P.L.342,

19

No.53), known as Pennsylvania Gaming Economic Development and

20

Tourism Fund Capital Budget Itemization Act of 2007. The report

21

shall be submitted by January 31, 2010, and by January 31 of

22

each year thereafter.

23

(f)  Local report.--A city of the first class, city of the

24

second class, county of the second class, convention center or

25

convention center authority, sports and exhibition authority of

26

a county of the second class, urban redevelopment authority,

27

airport authority or other entity that receives money from the

28

fund pursuant to an Economic Development Capital Budget under

29

subsection (b) or the act of July 25, 2007 (P.L.342, No.53),

30

known as Pennsylvania Gaming Economic Development and Tourism

- 188 -

 


1

Fund Capital Budget Itemization Act of 2007, shall submit an

2

annual report to the Office of the Budget, the chairman and

3

minority chairman of the Appropriations Committee of the Senate,

4

the chairman and minority chairman of the Community, Economic

5

and Recreational Development Committee of the Senate, the

6

chairman and minority chairman of the Appropriations Committee

7

of the House of Representatives and the chairman and the

8

minority chairman of the Gaming Oversight Committee of the House

9

of Representatives. The report shall include detailed

10

information, including records of expenditures, payments and

11

other distributions made from money received under subsection

12

(b). The initial report shall include information on all funds

13

received prior to January 31, 2010. The report shall be

14

submitted by January 31, 2010, and by January 31 of each year

15

thereafter until all funds under this section are distributed or

16

received. An entity that receives funds after the effective date

17

of this section shall submit an initial report by January 31 of

18

the year following receipt of the funds.

19

(g)  Distribution to international airport.--Notwithstanding

20

the provisions of section 7(d) of the act of July 25, 2007

21

(P.L.342, No.53), known as the Pennsylvania Gaming Economic

22

Development and Tourism Fund Capital Budget Itemization Act of

23

2007, following the distribution of $42.5 million of funds

24

allocated to the county for debt service and economic

25

development projects for an international airport in a county of

26

the second class under section 3(2)(i)(E) of said act, all

27

remaining funds shall be distributed directly to an authority

28

that operates an international airport in a county of the second

29

class.

30

Section 13.  Section 1408(a) and (c) of Title 4 are amended

- 189 -

 


1

and the section is amended by adding a subsection to read:

2

§ 1408.  Transfers from State Gaming Fund.

3

(a)  Transfer for compulsive and problem gambling

4

treatment.--Each year, the sum of [$1,500,000] $2,000,000

<--

5

$4,000,000 or an amount equal to [.001] .002 .004 multiplied by

<--

6

the total gross terminal revenue of all active and operating

7

licensed gaming entities, whichever is greater, shall be

8

transferred into the Compulsive and Problem Gambling Treatment

9

Fund established in section 1509 (relating to compulsive and

10

problem gambling program).

11

(a.1)  Transfer from grant program.--No later than 60 days

12

after the effective date of this section and annually

13

thereafter, the board shall transfer or cause to be transferred

14

$3,000,000 from the grant program established in subsection (c)

15

to the Compulsive and Problem Gambling Treatment Fund

16

established under section 1509 (relating to compulsive and

17

problem gambling program) solely for the purposes of compulsive

18

and problem gambling and drug and alcohol assessment and

19

treatment.

20

* * *

21

(c)  Local law enforcement grants.--Annually, the sum of

22

$5,000,000 shall be transferred to the board for the [purpose

23

of] purposes authorized in subsection (a.1) and for issuing

24

grants to local law enforcement agencies to enforce and prevent

25

[the unlawful operation of slot machines] all forms of unlawful

26

gambling in this Commonwealth. All sums transferred to the board 

<--

27

for the purpose of issuing grants for law enforcement purposes

28

which have not been distributed in grants to local law

29

enforcement agencies within 12 months of transfer to the board

30

and which have not been transferred under subsection (a.1) shall

- 190 -

 


1

be transferred to the Department of Agriculture for distribution

2

under section 5(1) of the act of July 8, 1986 (P.L.437, No.92),

3

known as the Pennsylvania Agricultural Fair Act, to eligible

4

county agricultural societies and other organizations which

5

conduct an annual agricultural fair. For purposes of this

6

subsection, the term "local law enforcement agency" shall

7

include Pennsylvania State Police activities in a municipality

8

which does not have a municipal police department for activities

9

in that municipality.

10

* * *

11

Section 13.1.  Sections 1501(b) and (c), 1504 and 1505 of

12

Title 4 are amended to read:

13

§ 1501.  Responsibility and authority of department.

14

* * *

15

(b)  Application of rules and regulations.--The department

16

may prescribe the extent, if any, to which any rules and

17

regulations shall be applied without retroactive effect. The

18

department shall have authority to prescribe the forms and the

19

system of accounting and recordkeeping to be employed and

20

through its representative shall at all times have power of

21

access to and examination and audit of any equipment and records

22

relating to all aspects of the operation of slot machines and

23

table games under this part.

24

(c)  Procedure.--For purposes of implementing this part, the

25

department may promulgate regulations in the same manner in

26

which the board is authorized as provided in section 1203

27

(relating to temporary regulations) and section 1303A (relating

28

to temporary table game regulations).

29

* * *

30

§ 1504.  Wagering on credit.

- 191 -

 


1

[Slot] Except as otherwise provided in section 1326A

2

(relating to wagering policies), slot machine licensees may not

3

extend credit. Slot machine licensees who do not hold a table

4

game operation certificate may not accept credit cards, charge

5

cards or debit cards from a player for the exchange or purchase

6

of slot machine credits or for an advance of coins or currency

7

to be utilized by a player to play slot machine games or extend

8

credit in any manner to a player so as to enable the player to

9

play slot machines. Slot machine licensees who hold a table game

10

operation certificate may extend credit for slot machine gaming

11

in accordance with section 1326A (relating to wagering

12

policies).

13

§ 1505.  No eminent domain authority.

14

Neither the Commonwealth nor any political subdivision

15

thereof shall have the right to acquire, with or without

16

compensation, through the power of eminent domain any property,

17

easement or land use right for the siting or construction of a

18

licensed facility [for the operation of slot machines by a slot

19

machine licensee].

20

Section 13.2.  Title 4 is amended by adding a section to

<--

21

read:

22

1507.1.  Deteriorated property designations.

23

Real property wherein a licensed gaming facility is located

24

may not be designated as, included in or considered a

25

deteriorated property as defined in the act of December 1, 1977

26

(P.L.237, No.76), known as the Local Economic Revitalization Tax

27

Assistance Act.

28

Section 13.2 13.3.  Section 1509(b) and (c) of Title 4 are

<--

29

amended and the section is amended by adding subsections to

30

read:

- 192 -

 


1

§ 1509.  Compulsive and problem gambling program.

2

* * *

3

(b)  Compulsive and Problem Gambling Treatment Fund.--There

4

is hereby established in the State Treasury a special fund to be

5

known as the Compulsive and Problem Gambling Treatment Fund. All

6

moneys in the fund shall be expended for programs for the

7

prevention and treatment of gambling addiction and other

8

emotional and behavioral problems associated with or related to

9

gambling addiction and for the administration of the compulsive

10

and problem gambling program. Moneys in the fund shall be

11

expended for the programs set forth in subsection (d.1)(4)(i),

12

(ii), (iii) and (iv). The fund shall consist of money annually

13

allocated to it from the annual payment established under

14

section 1408 (relating to transfers from State Gaming Fund),

15

money which may be allocated by the board, interest earnings on

16

moneys in the fund and any other contributions, payments or

17

deposits which may be made to the fund.

18

(c)  Notice of availability of assistance.--

<--

19

(1)  Each slot machine licensee shall obtain a toll-free

20

telephone number to be used to provide persons with

21

information on assistance for compulsive or problem gambling.

22

Each licensee shall conspicuously post signs similar to the

23

following statement:

24

If you or someone you know has a gambling problem, help

25

is available. Call (Toll-free telephone number).

26

The signs must be posted within 50 feet of each entrance and

27

exit and within 50 feet of each automated teller machine

28

location within the licensed facility.

29

(2)  Each racetrack where slot machines or table games 

30

are operated shall print a statement on daily racing programs

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1

provided to the general public that is similar to the

2

following:

3

If you or someone you know has a gambling problem, help

4

is available. Call (Toll-free telephone number).

5

(3)  A licensed facility which fails to post or print the

6

warning sign in accordance with paragraph (1) or (2) shall be

7

assessed a fine of $1,000 a day for each day the sign is not

8

posted or printed as provided in this subsection.

9

(c)  Notice of availability of assistance.--

<--

10

(1)  Each slot machine licensee shall obtain a toll-free

11

telephone number to be used to provide persons with

12

information on assistance for compulsive or problem gambling.

13

Each licensee shall conspicuously post signs similar to the

14

following statement:

15

If you or someone you know has a gambling problem, help

16

is available. Call (Toll-free telephone number).

17

The signs must be posted within 50 feet of each entrance

18

and exit [and], within 50 feet of each automated teller

19

machine location and a minimum of 20 signs must be posted 

20

within the licensed facility.

21

(2)  Each racetrack where slot machines are operated

22

shall print a statement on daily racing programs provided to

23

the general public that is similar to the following:

24

If you or someone you know has a gambling problem, help

25

is available. Call (Toll-free telephone number).

26

(3)  A licensed facility which fails to post or print the

27

warning sign in accordance with paragraph (1) or (2) shall be

28

assessed a fine of $1,000 a day for each day the sign is not

29

posted or printed as provided in this subsection.

30

* * *

- 194 -

 


1

(d.1)  Addiction treatment and assessment.--

2

(1)  The General Assembly recognizes that the expansion

3

of casino-styling gaming in this Commonwealth requires an

4

enhanced awareness of compulsive and problem gambling and the

5

need to develop and implement effective strategies for

6

prevention, assessment and treatment of this behavioral

7

disorder. The General Assembly further recognizes that,

8

according to research, compulsive and problem gambling may

9

overlap with drug and/or alcohol addiction. Therefore, it is

10

the intent of the General Assembly to establish an approach

11

to compulsive and problem gambling prevention, assessment and

12

treatment that will ensure the provision of adequate

13

resources to identify, assess and treat compulsive and

14

problem gambling and drug and/or alcohol addiction.

15

(2)  The sum of $3,000,000 shall be annually transferred

16

from the Compulsive and Problem Gambling Treatment Fund to

17

the Department of Health for allocation to the single county

18

authorities. The moneys so transferred and allocated shall be

19

used by the single county authorities for compulsive and

20

problem gambling and associated drug and/or alcohol addiction

21

assessments and for the related addiction treatment in

22

nonhospital residential detoxification facilities,

23

nonhospital residential rehabilitation facilities and halfway

24

houses licensed by the Department of Health to provide

25

addiction treatment services. Financial counseling may be a

26

required component of treatment, whether it is provided

27

directly by the treatment service provider or subcontracted

28

to a third party. No moneys authorized to be transferred

29

under this subsection shall be utilized to supplant other

30

funding for the treatment of drug and/or alcohol addiction.

- 195 -

 


1

After one year, the board shall commission a study of the

<--

2

impact of the Compulsive and Problem Gambling Treatment Fund

3

in areas where gambling was expanded. The commission shall

4

produce a report that includes data on race, gender,

5

geography and income and a recommendation of whether the

6

fund's appropriation should be increased to a sum up to

7

$5,000,000.

8

(3)  Eligibility to receive treatment services for

9

treatment of compulsive and problem gambling, and drug and/or

10

alcohol addiction associated or related to compulsive and

11

problem gambling under paragraph (1), shall be determined

12

using financial eligibility and other requirements of the

13

single county authorities as approved by the Department of

14

Health.

15

(4)  Within 60 days of the effective date of this

16

subsection, the Department of Health's Bureau of Drug and

17

Alcohol Programs and the board's Office of Compulsive and

18

Problem Gambling shall collaborate with providers and other

19

persons or entities with expertise in the field of compulsive

20

and problem gambling to:

21

(i)  Develop and implement a strategic plan for the

22

prevention and treatment of compulsive and problem

23

gambling and associated behavior disorders, including

24

drug and/or alcohol addictions.

25

(ii)  Adopt compulsive and problem gambling treatment

26

standards to be integrated with the Bureau of Drug and

27

Alcohol Program's uniform Statewide guidelines that

28

govern the provision of addiction treatment services. The

29

standards may provide criteria for the certification of

30

compulsive and problem gambling counselors.

- 196 -

 


1

(iii)  Develop, in collaboration with the appropriate

2

State agencies, a method to link compulsive and problem

3

gambling data collection and referral information to

4

crisis response hotlines and youth and domestic violence

5

programs or providers.

6

(iv)  Collaborate with the Department of Health, the

7

Department of Aging and other appropriate offices and

8

agencies of State or local government and persons and

9

entities, public or private, with expertise in compulsive

10

and problem gambling treatment to educate youth and older

11

Pennsylvanians through prevention training and materials

12

regarding the prevention, recognition and treatment of

13

compulsive and problem gambling problems. The Bureau of

14

Drug and Alcohol Programs and the board's Office of

15

Compulsive and Problem Gambling shall work with the

16

identified agencies and other agencies and entities to

17

develop demographic-specific compulsive and problem

18

gambling prevention, intervention and treatment programs.

19

(d.2)  Report.--Beginning October 1, 2010, and every October

20

1 thereafter, the Bureau of Drug and Alcohol Programs and the

21

board's Office of Compulsive and Problem Gambling shall jointly

22

submit an annual report to the Governor and the General Assembly

23

reporting data and progress on and activities initiated to

24

facilitate the development and implementation of the strategic

25

plan for the prevention and treatment of compulsive and problem

26

gambling and associated behavior disorders and addictions and

27

the other requirements of this section.

28

* * *

29

Section 13.3 13.4.  Sections 1510(a), 1511(b) and 1512(a.1),

<--

30

(a.5) and (b) of Title 4 are amended to read:

- 197 -

 


1

§ 1510.  Labor hiring preferences.

2

(a)  Category 1, 2, and 3 licensed facilities, generally.--

3

Each licensed gaming entity shall prepare a hiring plan for

4

employees of its respective licensed facility which promotes a

5

diverse work force, minority participation and personnel from

6

within the surrounding geographical area. The hiring plan shall

7

be approved by the board and shall be consistent with the goals

8

outlined in sections 1212 (relating to diversity goals of board)

9

and 1304A (relating to Commonwealth resident employment goals).

10

* * *

11

§ 1511.  Declaration of exemption from Federal laws prohibiting

12

slot machines.

13

* * *

14

(b)  Legal shipments.--All shipments of [slot machines] 

15

gambling devices, as defined in section 1 of the Gambling

16

Devices Transportation Act (64 Stat. 1134, 15 U.S.C. § 1171), 

17

into this Commonwealth, the registering, recording and labeling

18

of which has been effected by the manufacturer and supplier of

19

those devices, in accordance with sections [5 and 7] 3 and 4 of

20

the Gambling Devices Transportation Act (64 Stat. 1134, 15

21

U.S.C. §§ [1175 and 1177] 1173 and 1174), shall be deemed legal

22

shipments of [slot machines] gambling devices into this

23

Commonwealth.

24

§ 1512.  Financial and employment interests.

25

* * *

26

(a.1)  Employment.--Except as may be provided by rule or

27

order of the Pennsylvania Supreme Court and except as provided

28

in section 1512.1 (relating to additional restrictions), no

29

executive-level public employee, public official or party

30

officer, or an immediate family member thereof, shall be

- 198 -

 


1

employed by an applicant or a slot machine licensee,

2

manufacturer licensee, supplier licensee or licensed racing

3

entity, or by any holding company, affiliate, intermediary or

4

subsidiary thereof, while the individual is an executive-level

5

public employee, public official or party officer and for one

6

year following termination of the individual's status as an

7

executive-level public employee, public official or party

8

officer.

9

* * *

10

(a.5)  State Ethics Commission.--The State Ethics Commission

11

shall publish a list of all State, county, municipal and other

12

government positions that meet the definitions of "public

13

official" as defined under subsection (b) or "executive-level

14

public employee" [under subsection (b)] and a list of

15

individuals subject to section 1512.1. The Office of

16

Administration shall assist the [Ethics Commission] commission 

17

in the development of the list, which shall be published in the

18

Pennsylvania Bulletin biennially and on the board's website.

19

Upon request, each public official shall have a duty to provide

20

the [Ethics Commission] commission with adequate information to

21

accurately develop and maintain the list. The [Ethics

22

Commission] commission may impose a civil penalty under 65

23

Pa.C.S. § 1109(f) (relating to penalties) upon any individual,

24

including any public official or executive-level public employee

25

who fails to cooperate with the [Ethics Commission] commission 

26

under this subsection. An individual who relies in good faith on

27

the list published by the commission shall not be subject to any

28

penalty for a violation of this section.

29

(b)  Definitions.--As used in this section, the following

30

words and phrases shall have the meanings given to them in this

- 199 -

 


1

subsection:

2

["Executive-level public employee."  The term shall include

3

the following:

4

(1)  Deputy Secretaries of the Commonwealth and the

5

Governor's Office executive staff.

6

(2)  An employee of the Executive Branch with

7

discretionary power which may affect or influence the outcome

8

of a State agency's action or decision and who is involved in

9

the development of regulations or policies relating to a

10

licensed entity or who is involved in other matters under

11

this part. The term shall include an employee with law

12

enforcement authority.

13

(3)  An employee of a county or municipality with

14

discretionary powers which may affect or influence the

15

outcome of the county's or municipality's action or decision

16

and who is involved in the development of law, regulation or

17

policy relating to a licensed entity or who is involved in

18

other matters under this part. The term shall include an

19

employee with law enforcement authority.

20

(4)  An employee of a department, agency, board,

21

commission, authority or other governmental body not included

22

in paragraph (1), (2) or (3) with discretionary power which

23

may affect or influence the outcome of the governmental

24

body's action or decision and who is involved in the

25

development of regulation or policy relating to a licensed

26

entity or who is involved in other matters under this part.

27

The term shall include an employee with law enforcement

28

authority.]

29

"Financial interest."  Owning or holding, or being deemed to

30

hold, debt or equity securities or other ownership interest or

- 200 -

 


1

profits interest. A financial interest shall not include any

2

debt or equity security, or other ownership interest or profits

3

interest, which is held or deemed to be held in any of the

4

following:

5

(1)  A blind trust over which the executive-level public

6

employee, public official, party officer or immediate family

7

member thereof may not exercise any managerial control or

8

receive income during the tenure of office and the period

9

under subsection (a). The provisions of this paragraph shall

10

apply only to blind trusts established prior to the effective

11

date of this paragraph.

12

(2)  Securities that are held in a pension plan, profit-

13

sharing plan, individual retirement account, tax-sheltered

14

annuity, a plan established pursuant to section 457 of the

15

Internal Revenue Code of 1986 (Public Law 99-514, 26 U.S.C. §

16

1 et seq.) or any successor provision deferred compensation

17

plan whether qualified or not qualified under the Internal

18

Revenue Code of 1986 or any successor provision or other

19

retirement plan that:

20

(i)  is not self-directed by the individual; and

21

(ii)  is advised by an independent investment adviser

22

who has sole authority to make investment decisions with

23

respect to contributions made by the individual to these

24

plans.

25

(3)  A tuition account plan organized and operated

26

pursuant to section 529 of the Internal Revenue Code of 1986

27

(Public Law 99-514, 26 U.S.C. § 529) that is not self-

28

directed by the individual.

29

(4)  A mutual fund where the interest owned by the mutual

30

fund in a licensed entity does not constitute a controlling

- 201 -

 


1

interest as defined in this part.

2

"Immediate family."  A spouse, minor child or unemancipated

3

child.

4

"Law enforcement authority."  The power to conduct

5

investigations of or to make arrests for criminal offenses.

6

"Party officer."  A member of a national committee; a

7

chairman, vice chairman, secretary, treasurer or counsel of a

8

State committee or member of the executive committee of a State

9

committee; a county chairman, vice chairman, counsel, secretary

10

or treasurer of a county committee in which a licensed facility

11

is located; or a city chairman, vice chairman, counsel,

12

secretary or treasurer of a city committee of a city in which a

13

licensed facility is located.

14

"Public official."  The term shall include the following:

15

(1)  The Governor, Lieutenant Governor, a member of the

16

Governor's cabinet, Treasurer, Auditor General and Attorney

17

General of the Commonwealth.

18

(2)  A member of the Senate or House of Representatives

19

of the Commonwealth.

20

(3)  An individual elected or appointed to any office of

21

a county or municipality that directly receives a

22

distribution of revenue under this part.

23

(4)  An individual elected or appointed to a department,

24

agency, board, commission, authority or other governmental

25

body not included in paragraph (1), (2) or (3) that directly

26

receives a distribution of revenue under this part.

27

(5)  An individual elected or appointed to a department,

28

agency, board, commission, authority, county, municipality or

29

other governmental body not included in paragraph (1), (2) or

30

(3) with discretionary power which may influence or affect

- 202 -

 


1

the outcome of an action or decision and who is involved in

2

the development of regulation or policy relating to a

3

licensed entity or who is involved in other matters under

4

this part.

5

The term does not include a member of a school board or an

6

individual who held an uncompensated office with a governmental

7

body prior to January 1, 2006, and who no longer holds the

8

office as of January 1, 2006. The term includes a member of an

9

advisory board or commission which makes recommendations

10

relating to a licensed facility.

11

Section 14.  Title 4 is amended by adding a section to read:

12

§ 1512.1.  Additional restrictions.

13

(a)  Restrictions.--An individual member of the Pennsylvania

14

State Police or employee of the Office of Attorney General,

15

Office of the Auditor General or department whose duties

16

substantially involve licensing or enforcement, the development

17

of laws, regulations or policy or who has other discretionary

18

authority which may affect the gaming industry in this

19

Commonwealth under this part shall not do any of the following:

20

(1)  Accept employment with an applicant or licensed

21

entity, or an affiliate, intermediary, subsidiary or holding

22

company thereof, for a period of two years after the

23

termination of the employment relating to the conduct of

24

gaming.

25

(2)  Appear before the board in any hearing or proceeding

26

or participate in any other activity on behalf of any

27

applicant, licensee, permittee or licensed entity, or an

28

affiliate, intermediary, subsidiary or holding company

29

thereof, for a period of two years after termination of the

30

employment. Nothing shall prevent a current or former trooper

- 203 -

 


1

or employee subject to this section from appearing in any

2

proceeding as a witness where the employee is being called to

3

testify concerning any fact or information obtained during

4

the course of employment or related to the performance of

5

duties while so employed.

6

(3)  As a condition of employment, an individual subject

7

to this paragraph shall sign an affidavit that the individual

8

will not accept employment with or be retained by any

9

applicant, licensed entity or an affiliate, intermediary,

10

subsidiary or holding company thereof for a period of two

11

years from the termination of employment.

12

(b)  Employment or retention.--An applicant or licensed

13

entity or an affiliate, intermediary, subsidiary or holding

14

company thereof shall not employ or retain an individual who

15

signed an affidavit required by this subsection. An applicant or

16

licensed entity or an affiliate, intermediary, subsidiary or

17

holding company that knowingly employs or retains an individual

18

in violation of this subsection shall be subject to a penalty

19

under section 1518(c) (relating to prohibited acts; penalties).

20

(c)  Violation.--If an employee or independent contractor of

21

the board violates any provision of this section, the employing

22

agency or department may, upon notice and hearing, terminate the

23

employment, and the person shall be ineligible for future

24

employment with the agency or department and shall be prohibited

25

from applying for a license or permit, becoming an independent

26

contractor or registering as a licensed entity representative

27

for a period of five years from the date of termination of the

28

employment or contract.

29

(d)  Code of conduct.--The Pennsylvania State Police,

30

Attorney General, Auditor General and department shall adopt a

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1

comprehensive code of conduct which shall supplement all other

2

requirements under this part and 65 Pa.C.S. Pt. II (relating to

3

accountability), as applicable, and shall provide guidelines

4

applicable to members, employees and any independent contractors

5

of the agency, department or office whose duties involve the

6

enforcement or regulation of gaming under this part and the

7

immediate families of these members, as defined in section

8

1202.1(e) (relating to code of conduct), employees and

9

independent contractors to enable them to avoid any perceived or

10

actual conflict of interest and to promote public confidence in

11

the integrity and impartiality of gaming enforcement and

12

regulation. At a minimum, the code of conduct adopted under this

13

section shall include the restrictions applicable to the board

14

under section 1202.1(c), except that the restrictions under

15

section 1202.1(c)(5) shall not apply to an elected Attorney

16

General or Auditor General.

17

Section 14.1.  Sections 1513(c) and 1514(b), (f), (g) and (h)

<--

18

of Title 4 are amended to read:

19

§ 1513.  Political influence.

20

* * *

21

(c)  Penalties.--The first violation of this section by a

22

licensed gaming entity or any person that holds a controlling

23

interest in such gaming entity, or a subsidiary company thereof,

24

and any officer, director or management-level employee of such

25

licensee shall be punishable by a fine of not less than an

26

average single day's gross terminal revenue of the licensed

27

gaming entity derived from the operation of slot machines and

28

gross table game revenue from the operation of table games in

29

this Commonwealth; a second violation of this section, within

30

five years of the first violation, shall be punishable by at

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1

least a one-day suspension of the license held by the licensed

2

gaming entity and a fine not less than an average two days'

3

gross revenue of the licensed gaming entity; a third violation

4

of this section within five years of the second violation shall

5

be punishable by the immediate revocation of the license held by

6

the licensed gaming entity. The first violation of this section

7

by a manufacturer or supplier licensed pursuant to this part or

8

by any person that holds a controlling interest in such

9

manufacturer or supplier, or a subsidiary company thereof, and

10

any officer, director or management-level employee of such a

11

licensee shall be punishable by a fine of not less than one

12

day's average of the gross profit from sales made by the

13

manufacturer or supplier in Pennsylvania during the preceding

14

12-month period or portion thereof in the event the manufacturer

15

or supplier has not operated in Pennsylvania for 12 months; a

16

second violation of this section within five years of the first

17

violation shall be punishable by a one-month suspension of the

18

license held by the manufacturer or supplier and a fine of not

19

less than two times one day's average of the gross profit from

20

sales made by the manufacturer or supplier in Pennsylvania

21

during the preceding 12-month period or portion thereof in the

22

event the manufacturer or supplier has not operated in

23

Pennsylvania for 12 months. In no event shall the fine imposed

24

under this section be in an amount less than $50,000 for each

25

violation. In addition to any fine or sanction that may be

26

imposed by the board, any person who makes a contribution in

27

violation of this section commits a misdemeanor of the third

28

degree.

29

* * *

30

Section 14.1.  Section 1513 of Title 4 is reenacted and

<--

- 206 -

 


1

amended to read:

2

§ 1513.  Political influence.

3

(a)  Contribution restriction.--The following persons shall

4

be prohibited from contributing any money or in-kind

5

contribution to a candidate for nomination or election to any

6

public office in this Commonwealth, or to any political party

7

committee or other political committee in this Commonwealth or

8

to any group, committee or association organized in support of a

9

candidate, political party committee or other political

10

committee in this Commonwealth:

11

(1)  An applicant for a slot machine license,

12

manufacturer license, supplier license, principal license,

13

key employee license or horse or harness racing license.

14

(2)  A slot machine licensee, licensed manufacturer,

15

licensed supplier or licensed racing entity.

16

(3)  A licensed principal or licensed key employee of a

17

slot machine licensee, licensed manufacturer, licensed

18

supplier or licensed racing entity.

19

(4)  An affiliate, intermediary, subsidiary or holding

20

company of a slot machine licensee, licensed manufacturer,

21

licensed supplier or licensed racing entity.

22

(5)  A licensed principal or licensed key employee of an

23

affiliate, intermediary, subsidiary or holding company of a

24

slot machine licensee, licensed manufacturer, licensed

25

supplier or licensed racing entity.

26

(6)  A person who holds a similar gaming license in

27

another jurisdiction and the affiliates, intermediaries,

28

subsidiaries, holding companies, principals or key employees

29

thereof.

30

(a.1)  Contributions to certain associations and

- 207 -

 


1

organizations barred.--The individuals prohibited from making

2

political contributions under subsection (a) shall not make a

3

political contribution of money or an in-kind contribution to

4

any association or organization, including a nonprofit

5

organization, that has been solicited by, or knowing that the

6

contribution or a portion thereof will be contributed to, the

7

elected official, executive-level public employee or candidate

8

for nomination or election to a public office in this

9

Commonwealth.

10

(a.2)  Internet website.--

11

(1)  The board shall establish an Internet website that

12

includes a list of all applicants for and holders of a slot

13

machine license, manufacturer license, supplier license or

14

racing entity license, and the affiliates, intermediaries,

15

subsidiaries, holding companies, principals and key employees

16

thereof, all persons holding a similar gaming license in

17

another jurisdiction, and the affiliates, intermediaries,

18

subsidiaries, holding companies, principals and key employees

19

thereof, and any other entity in which the applicant or

20

licensee has any debt or equity security or other ownership

21

or profits interest. An applicant or licensee shall notify

22

the board within seven days of the discovery of any change in

23

or addition to the information. The list shall be published

24

semiannually in the Pennsylvania Bulletin.

25

(2)  An individual who acts in good faith and in reliance

26

on the information on the Internet website shall not be

27

subject to any penalties or liability imposed for a violation

28

of this section.

29

(3)  The board shall request the information required

30

under paragraph (1) from persons licensed in another

- 208 -

 


1

jurisdiction who do not hold a license in this Commonwealth

2

and from regulatory agencies in the other jurisdiction. If a

3

licensee in another jurisdiction refuses to provide the

4

information required under paragraph (1), the person and its

5

officers, directors or persons with a controlling interest

6

shall be ineligible to receive any license under this part.

7

(b)  Annual certification.--The chief executive officer, or

8

other appropriate individual, of each applicant for a slot

9

machine license, manufacturer license or supplier license,

10

licensed racing entity, licensed supplier, licensed manufacturer

11

or licensed gaming entity shall annually certify under oath to

12

the board and the Department of State that such applicant or

13

licensed racing entity, licensed supplier, licensed manufacturer

14

or licensed gaming entity has developed and implemented internal

15

safeguards and policies intended to prevent a violation of this

16

provision and that such applicant or licensed racing entity or

17

licensed gaming entity has conducted a good faith investigation

18

that has not revealed any violation of this provision during the

19

past year.

20

(c)  Penalties.--The first violation of this section by a

21

licensed gaming entity or any person that holds a controlling

22

interest in such gaming entity, or a subsidiary company thereof,

23

and any officer, director or management-level employee of such

24

licensee shall be punishable by a fine of not less than an

25

average single day's gross terminal revenue of the licensed

26

gaming entity derived from the operation of slot machines and

27

gross table game revenue from the operation of table games in

28

this Commonwealth; a second violation of this section, within

29

five years of the first violation, shall be punishable by at

30

least a one-day suspension of the license held by the licensed

- 209 -

 


1

gaming entity and a fine not less than an average two days'

2

gross revenue of the licensed gaming entity; a third violation

3

of this section within five years of the second violation shall

4

be punishable by the immediate revocation of the license held by

5

the licensed gaming entity. The first violation of this section

6

by a manufacturer or supplier licensed pursuant to this part or

7

by any person that holds a controlling interest in such

8

manufacturer or supplier, or a subsidiary company thereof, and

9

any officer, director or management-level employee of such a

10

licensee shall be punishable by a fine of not less than one

11

day's average of the gross profit from sales made by the

12

manufacturer or supplier in Pennsylvania during the preceding

13

12-month period or portion thereof in the event the manufacturer

14

or supplier has not operated in Pennsylvania for 12 months; a

15

second violation of this section within five years of the first

16

violation shall be punishable by a one-month suspension of the

17

license held by the manufacturer or supplier and a fine of not

18

less than two times one day's average of the gross profit from

19

sales made by the manufacturer or supplier in Pennsylvania

20

during the preceding 12-month period or portion thereof in the

21

event the manufacturer or supplier has not operated in

22

Pennsylvania for 12 months. In no event shall the fine imposed

23

under this section be in an amount less than $50,000 for each

24

violation. In addition to any fine or sanction that may be

25

imposed by the board, any person who makes a contribution in

26

violation of this section commits a misdemeanor of the third

27

degree.

28

(d)  Definitions.--As used in this section, the following

29

words and phrases shall have the meanings given to them in this

30

subsection:

- 210 -

 


1

"Contribution."  Any payment, gift, subscription, assessment,

2

contract, payment for services, dues, loan, forbearance, advance

3

or deposit of money or any valuable thing made to a candidate or

4

political committee for the purpose of influencing any election

5

in this Commonwealth or for paying debts incurred by or for a

6

candidate or committee before or after any election. The term

7

shall include the purchase of tickets for events including

8

dinners, luncheons, rallies and other fundraising events; the

9

granting of discounts or rebates not available to the general

10

public; or the granting of discounts or rebates by television

11

and radio stations and newspapers not extended on an equal basis

12

to all candidates for the same office; and any payments provided

13

for the benefit of any candidate, including payments for the

14

services of a person serving as an agent of a candidate or

15

committee by a person other than the candidate or committee or

16

person whose expenditures the candidate or committee must

17

report. The term also includes any receipt or use of anything of

18

value received by a political committee from another political

19

committee and also includes any return on investments by a

20

political committee.

21

"Political committee."  Any committee, club, association or

22

other group of persons which receives contributions or makes

23

expenditures.

24

Section 14.2.  Section 1514(b), (f), (g) and (h) of Title 4

25

are amended to read:

26

§ 1514.  Regulation requiring exclusion of certain persons.

27

* * *

28

(b)  Categories to be defined.--The board shall promulgate

29

definitions establishing those categories of persons who shall

30

be excluded pursuant to this section, including cheats and

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1

persons whose privileges for licensure, certification, permit or

2

registration have been revoked.

3

* * *

4

(f)  Notice.--Whenever the [board places] bureau seeks to

5

place the name of any person on a list pursuant to this section,

6

the [board] bureau shall serve notice of this fact to such

7

person by personal service or certified mail at the last known

8

address of the person. The notice shall inform the individual of

9

the right to request a hearing under subsection (g).

10

(g)  Hearing.--Within 30 days after receipt of notice in

11

accordance with subsection (f), the person named for exclusion

12

or ejection may demand a hearing before the board, at which

13

hearing the [board] bureau shall have the affirmative obligation

14

to demonstrate that the person named for exclusion or ejection

15

satisfies the criteria for exclusion established by this section

16

and the board's regulations. Failure of the person to demand a

17

hearing within 30 days after service shall be deemed an

18

admission of all matters and facts alleged in the [board's] 

19

bureau's notice and shall preclude [a] the person from having an

20

administrative hearing, but shall in no way affect the right to

21

judicial review as provided in this section.

22

(h)  Review.--If, upon completion of a hearing on the notice

23

of exclusion or ejection, the board determines that placement of

24

the name of the person on the exclusion list is appropriate, the

25

board shall make and enter an order to that effect, which order

26

shall be served on all [slot machine licensees] licensed gaming

27

entities. The order shall be subject to review by the

28

Commonwealth Court in accordance with the rules of court.

29

Section 14.2.  Title 4 is amended by adding a section to

30

read:

- 212 -

 


1

§ 1516.1.  Prosecutorial and adjudicatory functions.

2

The board shall adopt regulations and procedures necessary to

3

ensure that the Bureau of Investigations and Enforcement is a

4

distinct entity and to prevent commingling of the investigatory

5

and prosecutorial functions of the Bureau of Investigations and

6

Enforcement under section 1517 (relating to investigations and

7

enforcement) and the adjudicatory functions of the board.

8

Regulations and procedures under this section shall do all of

<--

9

the following:

10

(1)  Provide that the executive director and the chief

11

counsel of the board shall not direct or limit the scope of a

12

background investigation conducted by the bureau.

13

(2)  Incorporate subsection (c.1), on prohibitions, of

14

section 1202.1(c.1) (relating to code of conduct) and any

15

other applicable provisions of section 1202.1.

16

Section 15.  Section 1517(a.1)(6), (b)(1), (c)(12) and (e)(1)

17

of Title 4 are amended, subsection (a.2)(1) is amended by adding

18

a subparagraph and subsection (c) is amended by adding a 

<--

19

paragraph paragraphs to read:

<--

20

§ 1517.  Investigations and enforcement.

21

* * *

22

(a.1)  Powers and duties of bureau.--The Bureau of

23

Investigations and Enforcement shall have the following powers

24

and duties:

25

* * *

26

(6)  Conduct [audits] reviews of a licensed entity as

27

necessary to ensure compliance with this part. [An audit] A

28

review may include the review of accounting, administrative

29

and financial records, management control systems, procedures

30

and other records utilized by a licensed entity.

- 213 -

 


1

* * *

2

(a.2)  Office of Enforcement Counsel.--

3

(1)  There is established within the bureau an Office of

4

Enforcement Counsel which shall act as the prosecutor in all

5

noncriminal enforcement actions initiated by the bureau under

6

this part and shall have the following powers and duties:

7

* * *

8

(iv)  Petition the board for the appointment of a

9

trustee under section 1332 (relating to appointment of

10

trustee).

11

* * *

12

(b)  Powers and duties of department.--

13

(1)  The department shall at all times have the power of

14

access to examination and audit of any equipment and records

15

relating to all aspects of the operation of slot machines or

16

table games under this part.

17

* * *

18

(c)  Powers and duties of the Pennsylvania State Police.--The

19

Pennsylvania State Police shall have the following powers and

20

duties:

21

* * *

22

(1.1)  Promptly conduct a background investigation on an

<--

23

individual selected by the board to fill the position of

24

executive director of the board, director of the bureau,

25

chief counsel of the board or the director of the Office of

26

Enforcement Counsel and submit the results to the board.

27

* * *

28

(12)  Conduct audits or verification of information of

29

slot machine or table game operations at such times, under

30

such circumstances and to such extent as the bureau

- 214 -

 


1

determines. This paragraph includes reviews of accounting,

2

administrative and financial records and management control

3

systems, procedures and records utilized by a slot machine

4

licensee.

5

* * *

6

(14)  By March 1 of each year, the Commissioner of the

7

Pennsylvania State Police shall submit a report to the

8

Appropriations Committee of the Senate, the Community,

9

Economic and Recreational Development Committee of the

10

Senate, the Appropriations Committee of the House of

11

Representatives and the Gaming Oversight Committee of the

12

House of Representatives. The report shall summarize law

13

enforcement activities at each licensed facility during the

14

previous calendar year and shall include all of the

15

following:

16

(i)  The number of arrests at each licensed facility.

17

(ii)  A list of specific offenses charged for each

18

offense.

19

(iii)  The number of criminal prosecutions resulting

20

from arrests.

21

(iv)  The number of convictions resulting from

22

prosecutions.

23

(v)  The number of Pennsylvania State Police troopers

24

assigned to each licensed facility and to the gaming unit

25

at the Pennsylvania State Police headquarters.

26

(vi)  The number and nature of disciplinary actions

<--

27

taken and complaints made against Pennsylvania State

28

Police troopers in a licensed facility.

29

(vii)  The closest local police station, Pennsylvania

30

State Police station and regional Pennsylvania State

- 215 -

 


1

Police headquarters to each licensed facility.

2

* * *

3

(e)  Inspection, seizure and warrants.--

4

(1)  The bureau, the department and the Pennsylvania

5

State Police shall have the authority without notice and

6

without warrant to do all of the following in the performance

7

of their duties:

8

(i)  Inspect and examine all premises where slot

9

machine or table game operations are conducted, gaming

10

devices or equipment are manufactured, sold, distributed

11

or serviced or where records of these activities are

12

prepared or maintained.

13

(ii)  Inspect all equipment and supplies in, about,

14

upon or around premises referred to in subparagraph (i).

15

(iii)  Seize, summarily remove and impound equipment

16

and supplies from premises referred to in subparagraph

17

(i) for the purposes of examination and inspection.

18

(iv)  Inspect, examine and audit all books, records

19

and documents pertaining to a slot machine licensee's

20

operation.

21

(v)  Seize, impound or assume physical control of any

22

book, record, ledger, game, device, cash box and its

23

contents, counting room or its equipment or slot machine

24

or table game operations.

25

* * *

26

Section 16.  Section 1517.2 of Title 4 is amended to read:

27

§ 1517.2.  Conduct of [public officials and] board employees.

28

(a)  [Ex parte discussion prohibited.--An attorney

29

representing the bureau or the Office of Enforcement Counsel, or

30

an employee of the bureau or office involved in the hearing

- 216 -

 


1

process, shall not discuss the case ex parte with a hearing

2

officer, chief counsel or member] (Reserved).

3

(b)  [Other prohibitions.--A hearing officer, the chief

4

counsel or a member shall not discuss or exercise any

5

supervisory responsibility over any employee with respect to an

6

enforcement hearing with which the employee is involved]

7

(Reserved).

8

(c)  Disqualification.--If it becomes necessary for the chief

9

counsel or member to become involved on behalf of the board in

10

any enforcement proceeding, the chief counsel or member shall be

11

prohibited from participating in the adjudication of that matter

12

and shall designate appropriate individuals to exercise

13

adjudicatory functions.

14

Section 16.1.  Section 1518(a)(2), (3), (4), (5), (7), (8),

15

(11) and (13) and (c)(1)(v) and (3) of Title 4 are amended,

16

subsections (a) and (b) are amended by adding paragraphs and the

17

section is amended by adding subsections to read:

18

§ 1518.  Prohibited acts; penalties.

19

(a)  Criminal offenses.--

20

* * *

21

(2)  It shall be unlawful for a person to willfully:

22

(i)  fail to report, pay or truthfully account for

23

and pay over any license fee, authorization fee, tax or

24

assessment imposed under this part; or

25

(ii)  attempt in any manner to evade or defeat any

26

license fee, authorization fee, tax or assessment imposed

27

under this part.

28

(3)  It shall be unlawful for any licensed entity, gaming

29

employee, key employee or any other person to permit a slot

30

machine, table game or table game device to be operated,

- 217 -

 


1

transported, repaired or opened on the premises of a licensed

2

facility by a person other than a person licensed or

3

permitted by the board pursuant to this part.

4

(4)  It shall be unlawful for any licensed entity or

5

other person to manufacture, supply or place slot machines,

6

table games or table game devices into play or display slot

7

machines, table games or table game devices on the premise of

8

a licensed facility without the authority of the board.

9

(5)  Except as provided for in section 1326 (relating to

10

license renewals), it shall be unlawful for a licensed entity

11

or other person to manufacture, supply, operate, carry on or

12

expose for play any slot machine, table game or table game

13

device after the person's license has expired and prior to

14

the actual renewal of the license.

15

* * *

16

(7)  (i)  Except as set forth in subparagraph (ii), it

17

shall be unlawful for an individual to use or possess a

18

cheating or thieving device, counterfeit or altered

19

billet, ticket, token or similar objects accepted by a

20

slot machine or counterfeit or altered slot machine-

21

issued tickets or vouchers at a licensed facility.

22

(ii)  An authorized employee of a licensee or an

23

employee of the board may possess and use a cheating or

24

thieving device, counterfeit or altered billet, ticket,

25

token or similar objects accepted by a slot machine or

26

counterfeit or altered slot machine-issued tickets or

27

vouchers in performance of the duties of employment.

28

[(iii)  As used in this paragraph, the term "cheating

29

or thieving device" includes, but is not limited to, a

30

device to facilitate the alignment of any winning

- 218 -

 


1

combination or to remove from any slot machine money or

2

other contents. The term includes, but is not limited to,

3

a tool, drill, wire, coin or token attached to a string

4

or wire and any electronic or magnetic device.]

5

(7.1)  It shall be unlawful for an individual to do any

6

of the following:

7

(i)  Use or possess counterfeit, marked, loaded,

8

tampered with or altered chips or other cheating devices

9

in the conduct of gaming under this part, except that an

10

authorized employee of a licensee or an authorized

11

employee of the board may possess and use counterfeit

12

chips, cards or dice that have been marked, loaded or

13

tampered with, or other cheating devices in performance

14

of the duties of employment for training or testing

15

purposes only.

16

(ii)  Knowingly, by a trick or sleight of hand

17

performance or by fraud or fraudulent scheme, cards, dice

18

or device, for themselves or for another, win or attempt

19

to win money or property at a licensed facility or a

20

representation of either or reduce or attempt to reduce a

21

losing wager.

22

(8)  (i)  Except as set forth in subparagraph (ii), it

23

shall be unlawful for an individual to knowingly possess

24

or use while on the premises of a licensed facility a key

25

or device designed for the purpose of and suitable for

26

opening or entering any slot machine, drop box or coin

27

box which is located on the premises of the licensed

28

facility.

29

(ii)  An authorized employee of a licensee or a

30

member of the board may possess and use a device referred

- 219 -

 


1

to in subparagraph (i) in the performance of the duties

2

of employment.

3

* * *

4

(11)  It shall be unlawful for a licensed gaming entity

5

that is a licensed racing entity and that has lost the

6

license issued to it by either the State Horse Racing

7

Commission or the State Harness Racing Commission under the

8

Race Horse Industry Reform Act or that has had that license

9

suspended to operate slot machines or table games at the

10

racetrack for which its slot machine license was issued

11

unless the license issued to it by either the State Horse

12

Racing Commission or the State Harness Racing Commission will

13

be subsequently reissued or reinstated within 30 days after

14

the loss or suspension.

15

* * *

16

(13)  It shall be unlawful for any person under 18 years

17

of age to be permitted in the area of a licensed facility

18

where slot machines or table games are operated.

19

(14)  It shall be unlawful for any key employee, boxman,

20

floorman or any other casino employee who serves in a

21

supervisory position to solicit or accept and for any other

22

gaming employee to solicit any tip or gratuity from any

23

player or patron at the licensed facility where the person is

24

employed.

25

(15)  It shall be unlawful for a licensed gaming entity

26

to require a wager to be greater than the stated minimum or

27

less than the stated maximum. However, a wager made by a

28

patron and not rejected by a licensed gaming entity prior to

29

commencement of play shall be treated as a valid wager. A

30

wager accepted by a dealer shall be paid or lost in its

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1

entirety in accordance with the rules of the game,

2

notwithstanding that the wager exceeded the current table

3

maximum wager or was lower than the current table minimum

4

wager.

5

(16)  A person that engages in conduct prohibited by 18

6

Pa.C.S. § 6308 in a licensed facility commits an offense.

7

(17)  It shall be unlawful for any person to claim,

8

collect or take, or attempt to claim, collect or take, money

9

or anything of value in or from a slot machine, table game or

10

table game device, with intent to defraud, or to claim,

11

collect or take an amount greater than the amount won, or to

12

manipulate with the intent to cheat, any component of any

13

slot machine, table game or table game device in a manner

14

contrary to the designed and normal operational purpose.

15

(b)  Criminal penalties and fines.--

16

* * *

17

(3)  A person that violates subsection (a)(2), (3), (4),

18

(5), (6), (7), (7.1), (8), (9), (10), (11), (12), (14), (15)

19

or (17) commits a misdemeanor of the first degree. A person

20

that is convicted of a second or subsequent violation of

21

subsection (a)(2), (3), (4), (5), (6), (7), (7.1), (8), (9),

22

(10), (11), (12) or (17) commits a felony of the second

23

degree.

24

(4)  A person that commits an offense in violation of

25

subsection (a)(13) commits a summary offense and upon

26

conviction of a first offense shall be sentenced to pay a

27

fine of not less than $200 nor more than $1,000. A person

28

that is convicted of a second or subsequent offense shall be

29

sentenced to pay a fine of not less than $500 nor more than

30

$1,500. In addition to the fine imposed, any person convicted

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1

of an offense under subsection (a)(13) may be sentenced to

2

perform a period of community service not to exceed 40 hours.

3

(5)  A person that commits an offense in violation of

4

subsection (a)(16) commits an offense to be graded in

5

accordance with 18 Pa.C.S. § 6308 (relating to purchase,

6

consumption, possession or transportation of liquor or malt

7

or brewed beverages) and shall be subject to the same

8

penalties imposed pursuant to 18 Pa.C.S. §§ 6308 and 6310.4

9

(relating to restriction of operating privileges) except that

10

the fine imposed for a violation of subsection (a)(16) shall

11

be not less than $350 nor more than $1,000. The police

12

department making an arrest for a suspected violation of

13

subsection (a)(16) shall notify the parents or guardian of

14

the minor charged.

15

(c)  Board-imposed administrative sanctions.--

16

(1)  In addition to any other penalty authorized by law,

17

the board may impose without limitation the following

18

sanctions upon any licensee or permittee:

19

* * *

20

(v)  Suspend the license of any licensed gaming

21

entity for violation of or attempting to violate any

22

provisions of this part or regulations promulgated under

23

this part relating to its slot machine or table game 

24

operations.

25

* * *

26

(3)  In addition to any other fines or penalties that the

27

board may impose under this part or regulation, if a person

28

violates subsection (a)(2), the board shall impose an

29

administrative penalty of three times the amount of the

30

license fee, authorization fee, tax or other assessment

- 222 -

 


1

evaded and not paid, collected or paid over. This subsection

2

is subject to 2 Pa.C.S. Chs. 5 Subch. A and 7 Subch. A.

3

(d)  Aiding and abetting.--A person who aids, abets,

4

counsels, commands, induces, procures or causes another person

5

to violate a provision of this part shall be subject to all

6

sanctions and penalties, both civil and criminal, provided under

7

this part.

8

(e)  Continuing offenses.--A violation of this part that is

9

determined to be an offense of a continuing nature shall be

10

deemed to be a separate offense on each event or day during

11

which the violation occurs. Nothing in this section shall be

12

construed to preclude the commission of multiple violations of

13

the provisions of this part in any one day that establish

14

offenses consisting of separate and distinct acts or violations

15

of the provisions of this part or regulations promulgated under

16

this part.

17

(f)  Property subject to seizure, confiscation, destruction

18

or forfeiture.--Any equipment, device or apparatus, money,

19

material, gaming proceeds or substituted proceeds or real or

20

personal property used, obtained or received or any attempt to

21

use, obtain or receive the device, apparatus, money, material,

22

proceeds or real or personal property in violation of this part

23

shall be subject to seizure, confiscation, destruction or

24

forfeiture.

25

Section 17.  Title 4 is amended by adding sections to read:

26

§ 1518.1.  Additional authority.

27

(a)  General rule.--The chief enforcement counsel may

28

petition the Commonwealth Court for authorization to review or

29

obtain information in the possession of an agency in this

30

Commonwealth by averring that the bureau believes specific and 

<--

- 223 -

 


1

articulable facts demonstrating that the agency has in its

2

possession information material to an a pending investigation or

<--

3

inquiry being conducted by the bureau pursuant to this part and

4

that disclosure or release is in the best interest of the

5

Commonwealth. The petition shall request that the court enter a

6

rule upon the agency to show cause why the agency should not be

7

directed to disclose to the bureau or identified agents thereof,

8

information in its possession about any pending matter under the

<--

9

jurisdiction of the bureau or the board pursuant to this part. 

<--

10

If a respondent is a local agency, a copy of any rule issued

11

pursuant to this section shall be provided to the district

12

attorney of the county in which the local agency is located and

<--

13

to the Office of Attorney General. Upon request of a local

14

agency, the district attorney or the Attorney General may elect

<--

15

to enter an appearance to represent the local agency in the

16

proceedings.

17

(b)  Procedure.--The filing of a petition pursuant to this

18

section and related proceedings shall be in accordance with

19

court rule, including issuance as of course. A party shall not

20

disclose the filing of a petition or answer or receipt, content

<--

21

or disposition of a rule or order issued pursuant to this

22

section without leave of court. Any party to the proceedings may

23

request that the record be sealed and proceedings be closed. The

24

court shall grant the request if it is in the best interest of

25

any person or the Commonwealth to do so.

26

(c)  Court determination.--Following review of the record,

27

the court shall grant the relief sought by the chief enforcement

28

counsel, if the court determines that the agency has in its

29

possession information material to the investigation or inquiry

30

and that disclosure or release of the information is in the best

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1

interest of the Commonwealth, that the disclosure or release of

<--

2

the information is not otherwise prohibited by statute or

3

regulation and that the disclosure or release of the information

4

would not inhibit an agency in the performance of the agency's

5

duties. If the court so determines, the court shall enter an

6

order authorizing and directing the information be made

7

available for review in camera.

8

(d)  Release of materials or information.--If, after an in

9

camera review, the chief enforcement counsel seeks to obtain

10

copies of materials in the agency's possession, the court may,

11

notwithstanding any other provision of law if not otherwise 

<--

12

prohibited by statute or regulation, enter an order that the

13

requested materials be provided. Any order authorizing the

14

release of materials or other information shall contain

15

direction regarding the safekeeping and use of the materials or

16

other information sufficient to satisfy the court that the

17

materials or information will be sufficiently safeguarded. In

18

making this determination the court shall consider the input of

19

the agency concerning any pending investigation or ongoing

<--

20

matter and the safety of persons and property.

21

(e)  Modification of order.--If subsequent investigation or

22

inquiry by the board bureau warrants modification of any order

<--

23

entered pursuant to this section, the chief enforcement counsel

24

may petition to request the modification. Upon such request, the

25

court may modify its orders at any time and in any manner it

26

deems necessary and appropriate. The agency named in the

27

original petition shall be given notice and an opportunity to be

28

heard.

29

(f)  Use of information or materials.--Any person who, by any

30

means authorized by this section, has obtained knowledge of

- 225 -

 


1

information or materials solely pursuant to this section may use

2

such information or materials in a manner consistent with any

3

directions imposed by the court and appropriate to the proper

4

performance of the person's official duties under this part.

5

(g)  Violation.--In addition to any remedies and penalties

6

provided in this part, any violation of the provisions of this

7

section may be punished as contempt of the court.

8

(h)  Definition.--As used in this section the term "agency"

9

shall mean a "Commonwealth agency" or a "local agency" as those

10

terms are defined in section 102 of the act of February 14,

11

2008, (P.L.6, No.3) known as the Right-to-Know Law.

12

§ 1518.2.  Report of suspicious transactions.

13

(a)  Duty.--The holder of any slot machine license or a

14

person acting on behalf of the licensee shall file a report of

15

any suspicious transaction with the bureau. The filing of a

16

report under 31 CFR 103.21 (relating to reports by casinos of

17

suspicious transactions) shall satisfy this requirement.

18

(b)  Failure to report.--A person required under this section

19

to file a report of a suspicious transaction who knowingly fails

20

to file a report of a suspicious transaction or who knowingly

21

causes another person having that responsibility to fail to file

22

a report commits a misdemeanor of the third degree and shall be

23

subject to the sanctions under section 1518(c) (relating to

24

prohibited acts; penalties).

25

(c)  Bureau.--The bureau shall maintain a record of all

26

reports made under this section for a period of five years. The

27

bureau shall make the reports available to any Federal or State

28

law enforcement agency upon written request and without

29

necessity of subpoena.

30

(d)  Notice prohibited.--A person who is required to file a

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1

report of a suspicious transaction under this section may not

2

notify any person involved in the transaction that the

3

transaction has been reported. Any person that violates this

4

subsection commits a misdemeanor of the third degree.

5

(e)  Immunity.--A person who is required to file a report of

6

a suspicious transaction under this section who in good faith

7

makes the report shall not be liable in any civil action brought

8

by any person for making the report, regardless of whether the

9

transaction is later determined to be suspicious.

10

(f)  Sanctions.--

11

(1)  In considering appropriate administrative sanctions

12

against any person under section 1518(c) for a violation of

13

this section, the board shall consider all of the following:

14

(i)  The risk to the public and to the integrity of

15

gaming operations created by the conduct of the person.

16

(ii)  The seriousness of the conduct of the person

17

and whether the conduct was purposeful and with knowledge

18

that it was in contravention of the provisions of this

19

part or regulations promulgated under this part.

20

(iii)  Any justification or excuse for the conduct by

21

the person.

22

(iv)  The prior history of the particular licensee or

23

person involved with respect to gaming activity.

24

(v)  The corrective action taken by the slot machine

25

licensee to prevent future misconduct of a like nature

26

from occurring.

27

(vi)  In the case of a monetary penalty, the amount

28

of the penalty in relation to the severity of the

29

misconduct and the financial means of the licensee or

30

person. The board may impose any schedule or terms of

- 227 -

 


1

payment of such penalty as it may deem appropriate.

2

(2)  It shall be no defense to disciplinary action before

3

the board that a person inadvertently, unintentionally or

4

unknowingly violated a provision of this section. The factors

5

under paragraph (1) shall only go to the degree of the

6

penalty to be imposed by the board and not to a finding of a

7

violation itself.

8

(g)  Regulations.--The board shall promulgate regulations to

9

effectuate the purposes of this section.

10

§ 1518.3.  Inapplicability of Liquor Code.

11

The provision of section 471(c) of the act of April 12, 1951

12

(P.L.90, No.21), known as the Liquor Code, shall not apply to a

13

person who holds a slot machine license and who holds a license

14

issued under section 404 or 432 of the Liquor Code.

15

Section 18.  Section 1522 of Title 4 is amended to read:

16

§ 1522.  Interception of oral communications.

17

The interception and recording of oral communications made in

18

a [counting] count room of a licensed facility by a licensee

19

shall not be subject to the provisions of 18 Pa.C.S. Ch. 57 

20

(relating to wiretapping and electronic surveillance). Notice

21

that oral communications are being intercepted and recorded

22

shall be posted conspicuously in the [counting] count room.

23

Section 18.1.  Title 4 is amended by adding a section to

24

read:

25

§ 1523.  Electronic funds transfer terminals.

26

(a)  Prohibition.--A slot machine licensee may not install,

27

own or operate or allow another person to install, own or

28

operate on the premises of the licensed facility a slot machine

29

or table game that is played with a device that allows a player

30

to operate the slot machine or table game by transferring funds

- 228 -

 


1

electronically from a debit card, credit card or by means of an

<--

2

electronic funds transfer terminal.

3

(b)  Definitions.--As used in this section, the following

4

words and phrases shall have the meanings given to them in this

5

subsection unless the context clearly indicates otherwise:

6

"Electronic funds transfer terminal."  An information-

7

processing device or an automatic teller machine used for

8

executing deposit account transactions between financial

9

institutions and their account holders by either the direct

10

transmission of electronic impulses or the recording of

11

electronic impulses for delayed processing. The fact that a

12

device is used for other purposes shall not prevent it from

13

being considered an electronic funds transfer terminal under

14

this definition.

15

Section 18.2.  Title 4 is amended by adding chapters to read:

16

Chapter 16

17

JUNKETS

18

Sec.

19

1601.  Gaming junkets authorized.

20

1602.  Gaming junket enterprise license.

21

1603.  Other licenses Classification system.

<--

22

1604.  Gaming junket representatives.

23

1605.  Junket agreements.

24

1606.  Conduct of junket.

25

1607.  Violation of terms.

26

1608.  Records.

27

1609.  Report.

28

1610.  Gaming junket arrangement.

29

1611.  Prohibitions.

30

§ 1601.  Gaming junkets authorized.

- 229 -

 


1

The board may authorize the organization and conduct of

2

gaming junkets subject to the provisions of this chapter. No

3

gaming junket shall be organized or permitted to operate in this

4

Commonwealth and no person shall act as a junket representative

5

or junket enterprise except in accordance with this chapter.

6

§ 1602.  Gaming junket enterprise license.

7

(a)  Gaming junket enterprise license required.--All gaming

8

junket enterprises shall obtain a license from the board prior

9

to acting as a gaming junket enterprise in this Commonwealth.

10

(b)  Application.-–A gaming junket enterprise license

11

application shall be in a form prescribed by the board and shall

12

include the following:

13

(1)  The name, address and photograph of the applicant

14

all owners, directors, managers and supervisory employees of

15

a gaming junket enterprise.

16

(2)  The details of a gaming junket enterprise license or

17

similar license applied for or granted or denied to the

18

applicant by another jurisdiction.

19

(3)  Consent for the board to conduct a background

20

investigation, the scope of which shall be determined by the

21

board.

22

(4)  All releases necessary for the board to acquire

23

licensing documents and other information necessary to

24

conduct a background investigation or otherwise evaluate the

25

application.

26

(5)  A list of all civil judgments obtained against the

27

applicant pertaining to a gaming junket enterprise with which

28

the applicant has been associated.

29

(6)  A description of the operation and organization of

30

the gaming junket enterprise.

- 230 -

 


1

(7)  Any additional information required by the board.

2

(c)  Enforcement information.-–If the applicant has held a

3

gaming junket license or gaming junket license or other gaming

4

license in another jurisdiction, the applicant may submit a

5

letter of reference from the gaming enforcement agency in the

6

other jurisdiction. The letter shall specify the experiences of

7

the agency with the applicant, the applicant's associates and

8

the applicant's gaming junket enterprise or gaming activity. If

9

no letter is received within 30 days of the applicant's request,

10

the applicant may submit a statement under oath, subject to the

11

penalty for false swearing under 18 Pa.C.S. § 4903 (relating to

12

false swearing), that the applicant is in good standing with the

13

gaming enforcement agency in the other jurisdiction.

14

(d)  Issuance.-–Following review of the application and

15

completion of the background investigation, the board may issue

16

a gaming junket enterprise license to the applicant if the

17

applicant has proven by clear and convincing evidence that the

18

applicant is a person of good character, honesty and integrity

19

and that the applicant’s activities, criminal record,

20

reputation, habits and associations do not pose a threat to the

21

public interest or suitable or legitimate operation of gaming.

22

(e)  Failure to cooperate.-–Failure to provide required

23

information or releases under this section shall result in the

24

immediate denial of a license or permit.

25

(f)  Nontransferability.-–A license issued under this section

26

shall be nontransferable.

27

§ 1603.  Other licenses.

<--

28

An owner, director, manager or supervisory employee of a

29

gaming junket enterprise shall qualify for and obtain a key

30

employee license in accordance with section 1311.2 (relating to

- 231 -

 


1

licensing of key employees) or a principal employee license

2

under section 1311.1 (relating to licensing of principals) as

3

deemed appropriate by the board.

4

§ 1603.  Classification system.

<--

5

The board shall develop a classification system for the

6

regulation of gaming junket enterprises and the individuals and

7

entities associated with gaming junket enterprises.

8

§ 1604.  Gaming junket representatives.

9

(a)  Occupation permit.-–Except as otherwise provided in

10

subsection (e), a gaming junket representative shall obtain an

11

occupation permit from the board in accordance with section 1318

12

(relating to occupation permit application).

13

(b)  Application.-–In addition to the requirements of section

14

1308 (relating to applications for license or permit), the

15

application for a gaming junket representative occupation permit

16

shall be in a form prescribed by the board and shall include the

17

following:

18

(1)  Verification of employment status as a gaming junket

19

representative with a licensed gaming junket enterprise.

20

(2)  A description of employment responsibilities.

21

(3)  A consent form to allow the board to conduct a

22

background investigation, the scope of which shall be

23

determined by the board.

24

(4)  A release for the board to acquire copies of

25

information from government agencies, employers and others as

26

necessary to complete the investigation.

27

(5)  Fingerprints which shall be submitted to the

28

Pennsylvania State Police.

29

(6)  A photograph that meets the standards of the

30

Commonwealth Photo Imaging Network.

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1

(7)  Details relating to a similar license, permit or

2

other authorization obtained in another jurisdiction, if any.

3

(8)  Any additional information required by the board.

4

(c)  Issuance.-–Following review of the application and

5

background investigation, the board may issue an occupation

6

permit if the applicant has proven by clear and convincing

7

evidence that the applicant is a person of good character,

8

honesty and integrity and is eligible and suitable to receive an

9

occupation permit.

10

(d)  Nontransferability.-–An occupation permit issued under

11

this section shall be nontransferable.

12

(e)  Holder of occupation permit.–-Nothing in this section

13

shall be construed to prohibit a gaming junket representative an

<--

14

individual who holds a valid occupation permit and who is

15

employed by a slot machine licensee or an applicant for a slot

<--

16

machine license from acting as a gaming junket representative. A

<--

17

gaming junket representative need not be a resident of this

18

Commonwealth.

19

§ 1605.  Junket agreements.

20

Agreements entered into between a slot machine licensee and a

21

gaming junket enterprise or a gaming junket representative shall

22

include a provision for the termination of the agreement without

23

liability on the part of the slot machine licensee if:

24

(1)  The board orders the suspension, limitation,

25

conditioning, denial or revocation of the license of a gaming

26

junket representative license or occupation permit of a

27

gaming junket representative.

28

(2)  The board finds that the agreement is not approved

29

or that it is terminated. Failure to expressly include the

30

termination requirement under this section in the agreement

- 233 -

 


1

shall not constitute a defense in an action brought relating

2

to the termination of the agreement.

3

§ 1606.  Conduct of junket.

4

A slot machine licensee shall be responsible for the conduct

5

of a gaming junket representative or gaming junket enterprise

6

with which the slot machine licensee has an agreement and for

7

the terms and conditions of a gaming junket on its premises.

8

§ 1607.  Violation of terms.

9

Notwithstanding any other provision of this part, if the

10

board determines that the terms of an agreement to conduct a

11

gaming junket were violated by a slot machine licensee, gaming

12

junket enterprise or gaming junket representative, the board may

13

do the following:

14

(1)  Order restitution to gaming junket patrons.

15

(2)  Assess civil penalties for a violation or deviation

16

from the terms of the junket agreement.

17

§ 1608.  Records.

18

The board shall prescribe procedures and forms to retain

19

records relating to the conduct of a gaming junket by a slot

20

machine licensee. A slot machine licensee shall:

21

(1)  Maintain a report describing the operation of a

22

gaming junket conducted at its licensed facility.

23

(2)  Submit to the board and the bureau a list of all its

24

employees who act as conduct business on behalf of the slot

<--

25

machine licensee with gaming junket representatives on a

26

full-time, part-time or temporary basis.

27

(3)  Maintain records of all agreements entered into with

28

a gaming junket enterprise or gaming junket representative

29

for a minimum of five years.

30

(4)  Provide any other information relating to a gaming

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1

junket required by the board or bureau.

2

§ 1609.  Report.

3

A slot machine licensee, gaming junket representative or

4

gaming junket enterprise shall file a report with the bureau to

5

include a list of gaming junket patrons or potential gaming

6

junket patrons purchased by the slot machine licensee, gaming

7

junket representative or gaming junket enterprise. The report

8

shall include the source of the list and zip codes of patrons or

9

potential patrons on a list purchased directly or indirectly by

10

a slot machine licensee, gaming junket representative or gaming

11

junket enterprise. Nothing in this section shall require the

12

reporting or maintenance of personal identifying information

13

pertaining to patron or potential patrons.

14

§ 1610.  Gaming junket arrangement.

15

Upon petition by a slot machine licensee, the board may grant

16

an exemption from the requirements of this part to a gaming

17

junket representative. The board shall consult with the bureau

18

prior to granting an exemption under this section and shall

19

consider the following:

20

(1)  The terms of the gaming junket arrangement.

21

(2)  The number and scope of gaming junkets.

22

(3)  Whether the exemption is consistent with the

23

policies and purposes of this part.

24

(4)  Any other factor deemed necessary by the bureau or

25

board.

26

The board may condition, limit or restrict the exemption.

27

§ 1611.  Prohibitions.

28

A gaming junket enterprise or gaming junket representative

29

shall not do any of the following:

30

(1)  Engage in efforts to collect on checks that have

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1

been returned by a bank or other financial institution

2

without payment.

3

(2)  Exercise approval authority over the authorization

4

or issuance of credit under section 1326A (relating to

5

wagering policies).

6

(3)  Receive or retain a fee from a patron for the

7

privilege of participating in a gaming junket.

8

(4)  Pay for any service, including transportation, or

9

other thing of value provided to a patron participating in a

10

gaming junket except as authorized by this part.

11

CHAPTER 17

12

GAMING SCHOOLS

13

Sec.

14

1701.  Curriculum.

15

1702.  Gaming school gaming equipment.

16

§ 1701.  Curriculum.

17

The Department of Education, in consultation with the board,

18

shall develop curriculum guidelines, including minimum

19

proficiency requirements established by the board, for gaming

20

school instruction. The guidelines shall, at a minimum,

21

establish courses of instruction that will provide individuals

22

with adequate training necessary to obtain employment as a

23

gaming employee with a licensed gaming entity.

24

§ 1702.  Gaming school gaming equipment.

25

(a)  Use of gaming equipment.--All gaming equipment utilized

26

by a gaming school, including table game devices and all

27

representations of value, shall be used for training,

28

instructional and practice purposes only. The use of any such

29

gaming equipment for actual gaming by any person is prohibited.

30

(b)  Chips.--Unless the board otherwise determines, all

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1

gaming chips and other representations of value utilized by a

2

gaming school shall be distinctly dissimilar to any gaming chips

3

and representations of value utilized by a slot machine

4

licensee.

5

(c)  Possession, removal and transport of equipment.--No

6

gaming school shall possess, remove or transport, or cause to be

7

removed or transported, any slot machine, table game device or

8

associated equipment except in accordance with this part.

9

(d)  Serial numbers.--Each slot machine, table game device

10

and associated equipment on the premises of a gaming school

11

shall have permanently affixed on it a serial number which,

12

together with the location of the machine or table game device,

13

shall be filed with the board.

14

(e)  Security.--Each gaming school shall provide adequate

15

security for the slot machines, table games, table game devices

16

and associated equipment on the gaming school premises.

17

(f)  Notice to board and bureau.--No gaming school shall sell

18

or transfer any slot machine, table game, table game device or

19

associated equipment except upon prior written notice to the

20

board and the bureau and the removal of all serial numbers

21

required by this section.

22

(g)  Additional training.--Each gaming employee attending 

<--

23

gaming school shall be trained in cardiopulmonary resuscitation.

24

Section 19.  No later than 90 days after the effective date

25

of this act, the Pennsylvania Gaming Control Board shall

26

transfer the sum of $12,500,000 from the amounts previously

27

appropriated to the Pennsylvania Gaming Control Board pursuant

28

to 4 Pa.C.S. § 1408 to the General Fund.

29

Section 20.  The amendment of 4 Pa.C.S. § 1213 shall not

30

apply to any of the following:

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1

(1)  An application submitted before the effective date

2

of this section.

3

(2)  Any license or permit issued prior to the effective

4

date of this section.

5

(3)  The renewal of any license or permit issued prior to

6

the effective date of this section.

7

Section 20.1.  The amendment of 4 Pa.C.S. § 1202(a)(2) and

<--

8

the addition of 4 Pa.C.S. § 1517(c)(1.1) shall not apply to an

9

individual:

10

(1)  who, on July 1, 2009, was serving officially or

11

acting as Executive Director of the Pennsylvania Gaming

12

Control Board, Chief Counsel of the board, or the Director of

13

the Office Of Enforcement Counsel within the Bureau of

14

Investigations and Enforcement and;

15

(2)  on whom the bureau or the Pennsylvania State Police

16

completed a background investigation as a condition of

17

employment with the board.

18

Section 21.  This act shall take effect immediately.

19

Section 1.  Section 1102(11) of Title 4 of the Pennsylvania

<--

20

Consolidated Statutes is amended and the section is amended by

21

adding paragraphs to read:

22

§ 1102.  Legislative intent.

23

The General Assembly recognizes the following public policy

24

purposes and declares that the following objectives of the

25

Commonwealth are to be served by this part:

26

* * *

27

(2.1)  The authorization of table games in this part is

28

intended to supplement slot machine gaming by increasing

29

revenues to the Commonwealth and providing new employment

30

opportunities by creating skilled jobs for individuals

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1

related to the conduct of table games at licensed facilities

2

in this Commonwealth.

3

* * *

4

(10.1)  The General Assembly has a compelling interest in

5

protecting the integrity of both the electoral process and

6

the legislative process by preventing corruption and the

7

appearance of corruption which may arise through permitting

8

any type of political campaign contributions by certain

9

persons involved in the gaming industry and regulated under

10

this part.

11

(10.2)  Banning all types of political campaign

12

contributions by certain persons subject to this part is

13

necessary to prevent corruption and the appearance of

14

corruption, that may arise when political campaign

15

contributions and gaming regulated under this part are

16

intermingled.

17

(11)  It is necessary to maintain the integrity of the

18

regulatory control and legislative oversight over the

19

operation and play of slot machines and table games in this

20

Commonwealth; to [prevent the actual or appearance of

21

corruption that may result from large campaign

22

contributions;] ensure the bipartisan administration of this

23

part; and avoid actions that may erode public confidence in

24

the system of representative government.

25

(12)  It is the intent of the General Assembly to

26

authorize the operation and play of slot machines and table

27

games under a single slot machine license issued to a slot

28

machine licensee under this part.

29

(13)  The authorization of limited gaming in this

30

Commonwealth requires the Commonwealth to take steps to

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1

increase awareness of compulsive and problem gambling and to

2

develop and implement effective strategies for prevention,

3

assessment and treatment of this behavioral disorder.

4

(14)  Research indicates that for some individuals

5

compulsive and problem gambling and drug and alcohol

6

addiction are related. Therefore, the General Assembly

7

intends to establish an approach to compulsive and problem

8

gambling prevention, assessment and treatment that will

9

ensure the provision of adequate resources to identify,

10

assess and treat both compulsive and problem gambling and

11

drug and alcohol addiction.

12

Section 2.  The definitions of "associated equipment,"

13

"cheat," "conduct of gaming," "conviction," "gaming employee,"

14

"gross terminal revenue," "key employee," "licensed facility,"

15

"manufacturer," "manufacturer license," "slot machine,"

16

"supplier" and "supplier license" in section 1103 of Title 4 are

17

amended and the section is amended by adding definitions to

18

read:

19

§ 1103.  Definitions.

20

The following words and phrases when used in this part shall

21

have the meanings given to them in this section unless the

22

context clearly indicates otherwise:

23

* * *

24

"Associated equipment."  Any equipment or mechanical,

25

electromechanical or electronic contrivance, component or

26

machine used in connection with [gaming] slot machines or table 

27

games, including linking devices which connect to progressive

28

slot machines or slot machines, replacement parts, equipment

29

which affects the proper reporting and counting of gross

30

terminal revenue and gross table game revenue, computerized

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1

systems for controlling and monitoring slot machines or table

2

games, including, but not limited to, the central control

3

computer to which all slot machines communicate and devices for

4

weighing or counting money.

5

* * *

6

"Banking game."  Any table game in which a player competes

7

against a certificate holder rather than against another player.

8

* * *

9

"Cash."  United States currency and coin.

10

"Cash equivalent."  An asset that is readily convertible to

11

cash, including, but not limited to, any of the following:

12

(1)  Chips or tokens.

13

(2)  Travelers checks.

14

(3)  Foreign currency and coin.

15

(4)  Certified checks, cashier's checks and money orders.

16

(5)  Personal checks or drafts.

17

(6)  A negotiable instrument applied against credit

18

extended by a certificate holder or a financial institution.

19

(7)  Any other instrument or representation of value that

20

the Pennsylvania Gaming Control Board deems a cash

21

equivalent.

22

* * *

23

"Certificate holder."  A slot machine licensee that holds a

24

table game operation certificate awarded by the Pennsylvania

25

Gaming Control Board in accordance with Chapter 13A (relating to

26

table games).

27

"Cheat."  To [alter without authorization] defraud or steal

28

from any player, slot machine licensee or the Commonwealth while

29

operating or playing a slot machine or table game, including

30

causing, aiding, abetting or conspiring with another person to

- 241 -

 


1

do so. The term shall also mean to alter or causing, aiding,

2

abetting or conspiring with another person to alter the elements

3

of chance, method of selection or criteria which determine:

4

(1)  The result of a slot machine game or table game.

5

(2)  The amount or frequency of payment in a slot machine

6

game or table game.

7

(3)  The value of a wagering instrument.

8

(4)  The value of a wagering credit.

9

The term does not include altering a slot machine, table game

10

device or associated equipment for [required] maintenance [and] 

11

or repair with the approval of a slot machine licensee.

12

"Cheating or thieving device."  A device used or possessed

13

with the intent to be used to cheat during the operation or play

14

of any slot machine or table game. The term shall also include

15

any device used to alter a slot machine or a table game device

16

without the slot machine licensee's approval.

17

"Chip."  A representation of value, including a plaque,

18

issued by a certificate holder for use in playing a table game

19

at the certificate holder's licensed facility and redeemable

20

with the issuing certificate holder for cash or cash equivalent.

21

* * *

22

"Conduct of gaming."  The licensed placement [and], operation

23

and play of [games of chance] slot machines and table games 

24

under this part, as authorized and approved by the Pennsylvania

25

Gaming Control Board [at a licensed facility].

26

"Contest."  A table game competition among players for cash,

27

cash equivalents or prizes.

28

* * *

29

"Conviction."  A finding of guilt or a plea of guilty or nolo

30

contendere, whether or not a judgment of sentence has been

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1

imposed as determined by the law of the jurisdiction in which

2

the prosecution was held. The term does not include a conviction

3

that has been expunged or overturned or for which an individual

4

has been pardoned or had an order of Accelerated Rehabilitative

5

Disposition entered.

6

* * *

7

"Count room."  A secured room at a licensed facility

8

designated for the counting, wrapping and recording of slot

9

machine and table game receipts.

10

"Counterfeit chip."  Any object that is:

11

(1)  used or intended to be used to play a table game at

12

a certificate holder's licensed facility and which was not

13

issued by that certificate holder for such use; or

14

(2)  presented to a certificate holder for redemption if

15

the object was not issued by the certificate holder.

16

* * *

17

"Electronic gaming table."  A gaming table approved by the

18

Pennsylvania Gaming Control Board that is a mechanical,

19

electrical or computerized contrivance, terminal, machine or

20

other device which, upon insertion or placement of cash or cash

21

equivalents therein or thereon, or upon a wager or payment of

22

any consideration whatsoever, is available for play or operation

23

by one or more players as a table game. The term shall include

24

any gaming table where a wager or payment is made using an

25

electronic or computerized wagering or payment system. The term

26

shall not include a slot machine.

27

"Executive-level public employee."  The term shall include

28

the following:

29

(1)  Deputy Secretaries of the Commonwealth and the

30

Governor's Office executive staff.

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1

(2)  An employee of the executive branch whose duties

2

substantially involve licensing or enforcement under this

3

part, who has discretionary power which may affect or

4

influence the outcome of a Commonwealth agency's action or

5

decision or who is involved in the development of regulations

6

or policies relating to a licensed entity. The term shall

7

include an employee with law enforcement authority.

8

(3)  An employee of a county or municipality with

9

discretionary powers which may affect or influence the

10

outcome of the county's or municipality's action or decision

11

related to this part or who is involved in the development of

12

law, regulation or policy relating to matters regulated under

13

this part. The term shall include an employee with law

14

enforcement authority.

15

(4)  An employee of a department, agency, board,

16

commission, authority or other governmental body not included

17

in paragraph (1), (2) or (3) with discretionary power which

18

may affect or influence the outcome of the governmental

19

body's action or decision related to this part or who is

20

involved in the development of regulation or policy relating

21

to matters regulated under this part. The term shall include

22

an employee with law enforcement authority.

23

* * *

24

"Fully automated electronic gaming table."  An electronic

25

gaming table determined by the Pennsylvania Gaming Control Board

26

to be playable or operable as a table game without the

27

assistance or participation of a person acting on behalf of a

28

certificate holder.

29

* * *

30

"Gaming employee."  Any employee of a slot machine licensee,

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1

including, but not limited to:

2

(1)  Cashiers.

3

(2)  Change personnel.

4

(3)  [Counting] Count room personnel.

5

(4)  Slot attendants.

6

(5)  Hosts or other [persons] individuals authorized to

7

extend complimentary services, including employees performing

8

functions similar to those performed by a gaming junket

9

representative.

10

(6)  Machine mechanics [or], computer machine technicians

11

or table game device technicians.

12

(7)  Security personnel.

13

(8)  Surveillance personnel.

14

(9)  [Supervisors] Promotional play supervisors, credit

15

supervisors, pit supervisors, cashier supervisors, shift

16

supervisors, table game managers and assistant managers and

17

other supervisors and managers, except for those specifically

18

identified in this part as key employees.

19

(10)  Boxmen.

20

(11)  Dealers or croupiers.

21

(12)  Floormen.

22

(13)  Personnel authorized to issue promotional play.

23

(14)  Personnel authorized to issue credit.

24

The term [includes] shall include employees of a person holding

25

a supplier's license whose duties are directly involved with the

26

repair or distribution of slot machines [and], table game

27

devices or associated equipment sold or provided to [the] a 

28

licensed facility within this Commonwealth as determined by the

29

Pennsylvania Gaming Control Board. The term does not include

30

bartenders, cocktail servers or other persons engaged solely in

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1

preparing or serving food or beverages, clerical or secretarial

2

personnel, parking attendants, janitorial, stage, sound and

3

light technicians and other nongaming personnel as determined by

4

the board.

5

"Gaming junket."  A gaming arrangement made by a gaming

6

junket enterprise or a gaming junket representative for an

7

individual who:

8

(1)  Is selected or approved for participation in the

9

arrangement based on the individual's ability to satisfy

10

specific financial qualifications and the likelihood that the

11

individual will participate in playing slot machines or table

12

games and patronize a licensed facility for the purpose of

13

gaming.

14

(2)  Receives complimentary services or gifts from a slot

15

machine licensee for participation in the arrangement

16

including the costs of transportation, food, lodging or

17

entertainment.

18

"Gaming junket enterprise."  A person, other than a slot

19

machine licensee, who employs or otherwise engages the services

20

of a gaming junket representative to arrange gaming junkets to a

21

licensed facility, regardless of whether the activities of the

22

person or the gaming junket representative occur within this

23

Commonwealth.

24

"Gaming junket representative."  An individual, other than an

25

employee of a slot machine licensee, who arranges and negotiates

26

the terms of a gaming junket or selects individuals to

27

participate in a gaming junket to a licensed facility,

28

regardless of whether the activities of the individual occur

29

within this Commonwealth.

30

"Gaming school."  Any educational institution approved by the

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1

Department of Education as an accredited college or university,

2

community college, Pennsylvania private licensed school or its

3

equivalent and whose curriculum guidelines are approved by the

4

Department of Labor and Industry to provide education and job

5

training related to employment opportunities associated with

6

slot machines or table games, including slot machine, table game

7

device and associated equipment maintenance and repair.

8

"Gaming service provider."  A person that is not required to

9

be licensed as a manufacturer, supplier, management company or

10

gaming junket enterprise and:

11

(1)  provides goods or services to a slot machine

12

licensee or an applicant for a slot machine license for use

13

in the operation of a licensed facility; or

14

(2)  provides goods or services at a licensed facility.

15

"Gross table game revenue."  The total of:

16

(1)  Cash or cash equivalents received in the playing of

17

a table game minus the total of:

18

(i)  Cash or cash equivalents paid to players as a

19

result of playing a table game.

20

(ii)  Cash or cash equivalents paid to purchase

21

annuities to fund prizes payable to players over a period

22

of time as a result of playing a table game.

23

(iii)  The actual cost paid by the certificate holder

24

for any personal property distributed to a player as a

25

result of playing a table game. This does not include

26

travel expenses, food, refreshments, lodging or services.

27

(2)  Contest or tournament fees or payments, including

28

entry fees, buy-ins, re-buys and administrative fees, imposed

29

by a certificate holder to participate in a table game

30

contest or tournament, less cash paid or actual cost paid by

- 247 -

 


1

a certificate holder for prizes awarded to the contest or

2

tournament winners.

3

(3)  The total amount of the rake collected by a

4

certificate holder.

5

The term does not include counterfeit cash or chips; coins or

6

currency of other countries received in the playing of a table

7

game, except to the extent that the coins or currency are

8

readily convertible to cash; or cash taken in a fraudulent act

9

perpetrated against a certificate holder for which the

10

certificate holder is not reimbursed.

11

"Gross terminal revenue."  The total of cash or cash

12

equivalent wagers received by a slot machine minus the total of:

13

(1)  Cash or cash equivalents paid out to [patrons]

14

players as a result of playing a slot machine [which are paid

15

to patrons either manually], whether paid manually or or paid

16

out by the slot machine.

17

(2)  Cash or cash equivalents paid to purchase annuities

18

to fund prizes payable to [patrons] players over a period of

19

time as a result of playing a slot machine.

20

(3)  Any personal property distributed to a [patron as

21

the] player as a result of playing a slot machine. This does

22

not include travel expenses, food, refreshments, lodging or

23

services.

24

(4)  Cash received as entry fees for slot machine

25

contests or tournaments in which players compete for prizes.

26

The term does not include counterfeit [money] cash or tokens[,]; 

27

coins or currency of other countries [which are] received in

28

slot machines, except to the extent that [they] the coins or

29

currency are readily convertible to [United States currency,]

30

cash; or cash taken in a fraudulent [acts] act perpetrated

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1

against a slot machine licensee for which the licensee is not

2

reimbursed [or cash received as entry fees for contests or

3

tournaments in which the patrons compete for prizes].

4

* * *

5

"Hotel."  As follows:

6

(1)  Except as provided under paragraph (2), one or more

7

buildings owned or operated by a certificate holder which is

8

attached to, physically connected to or adjacent to the

9

certificate holder's licensed facility in which members of

10

the public may, for a consideration, obtain sleeping

11

accommodations.

12

(2)  When the term is used in section 1305 (relating to

13

Category 3 slot machine license), a building or buildings in

14

which members of the public may, for a consideration, obtain

15

sleeping accommodations.

16

* * *

17

"Key employee."  Any individual who is employed in a director

18

or department head capacity and who is empowered to make

19

discretionary decisions that regulate slot machine or table game

20

operations, including the general manager and assistant manager

21

of the licensed facility, director of slot operations, director

22

of table game operations, director of cage and/or credit

23

operations, director of surveillance, director of marketing,

24

director of management information systems, director of

25

security, comptroller and any employee who is not otherwise

26

designated as a gaming employee and who supervises the

27

operations of these departments or to whom these department

28

directors or department heads report and such other positions

29

not otherwise designated or defined under this part which the

30

Pennsylvania Gaming Control Board shall determine based on

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1

detailed analyses of job descriptions as provided in the

2

internal controls of the licensee as approved by the

3

Pennsylvania Gaming Control Board. All other gaming employees

4

unless otherwise designated by the Pennsylvania Gaming Control

5

Board shall be classified as non-key employees.

6

"Law enforcement authority."  The power to conduct

7

investigations of or to make arrests for criminal offenses.

8

* * *

9

"Licensed entity representative."  A person, including an

10

attorney, agent or lobbyist, acting on behalf of or authorized

11

to represent the interest of any applicant, licensee, permittee

12

or other person authorized by the Pennsylvania Gaming Control

13

Board to engage in any act or activity which is regulated under

14

the provisions of this part regarding any matter before, or

15

which may reasonably be expected to come before, the

16

Pennsylvania Gaming Control Board.

17

"Licensed facility."  The physical land-based location at

18

which a licensed gaming entity is authorized to place and

19

operate slot machines and, if authorized by the Pennsylvania

20

Gaming Control Board under Chapter 13A (relating to table

21

games), to conduct table games. The term includes any:

22

(1) area of a licensed racetrack authorized pursuant to

23

section 1207(17) (relating to regulatory authority of board)

24

to operate slot machines;

25

(2)  board-approved interim facility or temporary

26

facility; and

27

(3)  area of a hotel which the Pennsylvania Gaming

28

Control Board determines is suitable to conduct table games.

29

* * *

30

"Manufacturer."  A person who manufactures, builds, rebuilds,

- 250 -

 


1

fabricates, assembles, produces, programs, designs or otherwise

2

makes modifications to any slot machine, table game device or

3

associated equipment for use or play of slot machines or table 

4

games in this Commonwealth for gaming purposes.

5

"Manufacturer license."  A license issued by the Pennsylvania

6

Gaming Control Board authorizing a manufacturer to manufacture

7

or produce slot machines, table game devices or associated

8

equipment for use in this Commonwealth for gaming purposes.

9

* * *

10

"Municipal authority."  A body politic and corporate created

11

under the former act of June 28, 1935 (P.L.463, No.191), known

12

as the Municipality Authorities Act of one thousand nine hundred

13

and thirty-five, the former act of May 2, 1945 (P.L.382,

14

No.164), known as the Municipality Authorities Act of 1945, the

15

act of July 29, 1953 (P.L.1034, No.270), known as the Public

16

Auditorium Authorities Law or 53 Pa.C.S. Ch. 56 (relating to

17

municipal authorities).

18

* * *

19

"Nonbanking game."  Any table game in which a player competes

20

against another player and in which the certificate holder

21

collects a rake.

22

* * *

23

"Party."  The Bureau of Investigations and Enforcement of the

24

Pennsylvania Gaming Control Board or any applicant, licensee,

25

permittee, registrant or other person appearing of record in any

26

proceeding before the Pennsylvania Gaming Control Board.

27

* * *

28

"Player."  An individual wagering cash, cash equivalent or

29

other thing of value in the play or operation of a slot machine

30

or table game, including during a contest or tournament, the

- 251 -

 


1

play or operation of which may deliver or entitle the individual

2

playing or operating the slot machine or table game to receive

3

cash, cash equivalent or other thing of value from another

4

player or a slot machine licensee.

5

* * *

6

"Rake."  A set fee or percentage assessed by a certificate

7

holder for providing the services of a dealer, gaming table or

8

location, for playing any nonbanking game.

9

* * *

10

"Slot machine."  Any mechanical [or], electrical or

11

computerized contrivance, terminal, machine or other device

12

approved by the Pennsylvania Gaming Control Board which, upon

13

insertion of a coin, bill, ticket, token or similar object

14

therein or upon payment of any consideration whatsoever,

15

including the use of any electronic payment system except a

16

credit card or debit card, is available to play or operate, the

17

play or operation of which, whether by reason of skill or

18

application of the element of chance or both, may deliver or

19

entitle the person or persons playing or operating the

20

contrivance, terminal, machine or other device to receive cash,

21

billets, tickets, tokens or electronic credits to be exchanged

22

for cash or to receive merchandise or anything of value

23

whatsoever, whether the payoff is made automatically from the

24

machine or manually. A slot machine:

25

(1)  May utilize spinning reels or video displays or

26

both.

27

(2)  May or may not dispense coins, tickets or tokens to

28

winning patrons.

29

(3)  May use an electronic credit system for receiving

30

wagers and making payouts.

- 252 -

 


1

The term shall include associated equipment necessary to conduct

2

the operation of the contrivance, terminal, machine or other

3

device.

4

* * *

5

"Supplier."  A person that sells, leases, offers or otherwise

6

provides, distributes or services any slot machine, table game

7

device or associated equipment for use or play of slot machines

8

or table games in this Commonwealth.

9

"Supplier license."  A license issued by the Pennsylvania

10

Gaming Control Board authorizing a supplier to provide products

11

or services related to slot machines, table game devices or

12

associated equipment to slot machine licensees for use in this

13

Commonwealth for gaming purposes.

14

* * *

15

"Suspicious transaction."  The acceptance or redemption by a

16

person of cash or a cash equivalent involving or aggregating

17

$5,000 or more which a slot machine licensee or employee of a

18

slot machine licensee knows, suspects or has reason to believe:

19

(1)  involves funds derived from illegal activities or is

20

intended or conducted in order to conceal or disguise funds

21

or assets derived from illegal activities;

22

(2)  is part of a plan to violate or evade any law or

23

regulation or to avoid any transaction reporting requirement

24

under the laws or regulations of this Commonwealth or the

25

United States, including a plan to structure a series of

26

transactions to avoid any transaction reporting requirement

27

under the laws or regulations of this Commonwealth or the

28

United States; or

29

(3)  has no lawful business or other apparent lawful

30

purpose or is not the type of transaction in which a person

- 253 -

 


1

would normally be expected to engage and the slot machine

2

licensee or employee knows of no reasonable explanation for

3

the transaction after examining the available facts,

4

including the background and possible purpose of the

5

transaction.

6

"Table game."  Any banking or nonbanking game approved by the

7

Pennsylvania Gaming Control Board. The term includes roulette,

8

baccarat, blackjack, poker, craps, big six wheel, mini-baccarat,

9

red dog, pai gow, twenty-one, casino war, acey-ducey, sic bo,

10

chuck-a-luck, fan-tail, panguingui, chemin de fer, Asia poker,

11

Boston 5 stud poker, Caribbean stud poker, Colorado hold 'em

12

poker, double attack blackjack, double cross poker, double down

13

stud poker, fast action hold 'em, flop poker, four card poker,

14

let it ride poker, mini-craps, mini-dice, pai gow poker,

15

pokette, Spanish 21, Texas hold 'em bonus poker, three card

16

poker, two card joker poker, ultimate Texas hold 'em, winner's

17

pot poker and any other banking or nonbanking game. The term

18

shall not include:

19

(1)  Lottery games of the Pennsylvania State Lottery as

20

authorized under the act of August 26, 1971 (P.L.351, No.91),

21

known as the State Lottery Law.

22

(2)  Bingo as authorized under the act of July 10, 1981

23

(P.L.214, No.67), known as the Bingo Law.

24

(3)  Pari-mutuel betting on the outcome of thoroughbred

25

or harness horse racing as authorized under the act of

26

December 17, 1981 (P.L.435, No.135), known as the Race Horse

27

Industry Reform Act.

28

(4)  Small games of chance as authorized under the act of

29

December 19, 1988 (P.L.1262, No.156), known as the Local

30

Option Small Games of Chance Act.

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1

(5)  Slot machine gaming and progressive slot machine

2

gaming as defined and authorized under this part.

3

(6)  Keno.

4

"Table game device."  Includes gaming tables, cards, dice,

5

chips, shufflers, tiles, dominoes, wheels, drop boxes or any

6

mechanical, electrical or computerized contrivance, terminal,

7

machine or other device, apparatus, equipment or supplies

8

approved by the Pennsylvania Gaming Control Board and used to

9

conduct a table game.

10

"Table game operation certificate."  A certificate awarded by

11

the Pennsylvania Gaming Control Board under Chapter 13A

12

(relating to table games) that authorizes a slot machine

13

licensee to conduct table games in accordance with this part.

14

"Tournament."  An organized series of contests approved by

15

the Pennsylvania Gaming Control Board in which an overall winner

16

is ultimately determined.

17

"Trustee."  A person appointed by the Pennsylvania Gaming

18

Control Board under section 1332 (relating to appointment of

19

trustee) to manage and control the operations of a licensed

20

facility and who has the fiduciary responsibility to make

21

decisions to preserve the viability of a licensed facility and

22

the integrity of gaming in this Commonwealth.

23

* * *

24

Section 3.  Section 1201(f)(3), (h)(5), (7.1), (10), (11),

25

(13), (14) and (15) and (k) of Title 4 are amended, subsection

26

(h) is amended by adding paragraphs and the section is amended

27

by adding a subsection to read:

28

§ 1201.  Pennsylvania Gaming Control Board established.

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

hearing or proceeding under this part in which his

7

objectivity, impartiality, integrity or independence of

8

judgment may be reasonably questioned, as provided in

9

subsection (h)(6) or section 1202.1(c)(3) (relating to code

10

of conduct). If a legislative appointee has disqualified

11

himself, the qualified majority shall consist of all of the

12

remaining legislative appointees and at least two

13

gubernatorial appointees.

14

* * *

15

(h)  Qualifications and restrictions.--

16

* * *

17

(4.1)  No member shall engage in any business, employment

18

or vocation for which the member receives a salary,

19

compensation or fee for services rendered which is in excess

20

of 15% of the member's gross annual salary as a member of the

21

board. For purposes of this paragraph, the terms "salary,"

22

"compensation" and "fee" do not include any of the following:

23

(i)  Passive or unearned income, including interest,

24

dividends or capital gains from the sale of assets or

25

securities held for investment purposes.

26

(ii)  Health care benefits or retirement, pension or

27

annuity payments.

28

(iii)  Amounts received from a family-controlled

29

trade or business in which both personal services and

30

capital are income-producing factors, provided that the

- 256 -

 


1

personal services actually rendered by the member do not

2

generate a significant amount of income.

3

(iv)  Director's fees attributable to board

4

membership of a corporate or nonprofit body or board or

5

reimbursement for expenses incurred in connection with

6

board membership.

7

(5)  No member shall be paid or receive any fee or other

8

compensation for any activity related to the duties or

9

authority of the board other than salary and expenses

10

provided by law [for any activity related to the duties or

11

authority of the board. Nothing in this part shall prohibit a

12

member from engaging in any employment or receiving any

13

compensation for such employment that is not connected to or

14

incompatible with his service as a member of the board].

15

* * *

16

(7.1)  Prior to being sworn as a member, an appointee and

17

his immediate family shall divest any financial interest in

18

any applicant, licensed facility or licensed entity and in an

19

affiliate, intermediary, subsidiary or holding company

20

thereof owned or held by the appointee or known to be held by

21

the appointee's immediate family. For the duration of the

22

member's term and for [one year] two years thereafter, the

23

member and the member's immediate family may not acquire a

24

financial interest in any applicant, licensed facility or

25

licensed entity or in an affiliate, intermediary, subsidiary

26

or holding company [thereof] of an applicant, licensed

27

facility or licensed entity. For purposes of this paragraph,

28

the term "immediate family" shall mean spouse and any minor

29

or unemancipated child.

30

* * *

- 257 -

 


1

(10)  No former member may appear before the board in any

2

hearing or proceeding or participate in any other activity on

3

behalf of any applicant, licensed entity, or an affiliate,

4

intermediary, subsidiary or holding company [thereof] of an

5

applicant or licensed entity, or any other licensee or

6

permittee, for a period of two years from the termination of

7

term of office.

8

(11)  No member, employee of the board or independent

9

contractor [of the board] shall accept a complimentary

10

service, wager or be paid any prize from any wager at any

11

licensed facility within this Commonwealth or at any other

12

facility outside this Commonwealth which is owned or operated

13

by a licensed gaming entity or any of its affiliates,

14

intermediaries, subsidiaries or holding companies [thereof]

15

for the duration of their term of office, employment or

16

contract with the board and for a period of one year from the

17

termination of term of office, employment or contract with

18

the board. The provisions of this paragraph prohibiting

19

wagering during the term of employment shall not apply to

20

employees [who utilize] or independent contractors while

21

utilizing slot machines or table game devices for testing

22

purposes or [to verify] while verifying the performance of a

23

slot machine or table game as part of an enforcement

24

investigation.

25

* * *

26

(13)  No employee of the board [or individual employed by

27

an independent contractor of the board] whose duties

28

substantially involve licensing[,] or enforcement [or], the

29

development [or adoption] of laws, or the development or

30

adoption of regulations or policy related to gaming under

- 258 -

 


1

this part or who has other discretionary authority which may

2

affect the outcome of an action, proceeding or decision under

3

this part, including the executive director, bureau directors

4

and attorneys, shall do any of the following:

5

(i)  [accept] Accept employment with or be retained

6

by an applicant or licensed entity, or an affiliate,

7

intermediary, subsidiary or holding company [thereof] of

8

an applicant or licensed entity, for a period of [one

9

year after] two years following the termination of [the]

10

employment [relating to the conduct of gaming or contract

11

with the board; or].

12

(ii)  [appear] Appear before the board in any hearing

13

or proceeding or participate in any other activity on

14

behalf of any applicant, licensee, permittee or licensed

15

entity, or an affiliate, intermediary, subsidiary or

16

holding company [thereof] of an applicant, licensee or

17

licensed entity, for a period of two years after

18

termination of [the] employment [or contract with the

19

board].

20

As a condition of employment, an individual subject to this

21

paragraph shall sign an affidavit that the individual will

22

not accept employment with or be retained by any applicant or

23

licensed entity, or an affiliate, intermediary, subsidiary or

24

holding company of an applicant or licensed entity, for a

25

period of two years following the termination of employment.

26

If an employee of the board refuses or otherwise fails to

27

sign the affidavit, the board shall terminate the employment.

28

An applicant or licensed entity, or an affiliate,

29

intermediary, subsidiary or holding company of an applicant

30

or licensed entity, shall not employ or retain an individual

- 259 -

 


1

who signed an affidavit required by this paragraph until the

2

expiration of the two-year period required by this paragraph

3

for the acceptance of employment. An applicant or licensed

4

entity, or an affiliate, intermediary, subsidiary or holding

5

company of an applicant or licensed entity, that knowingly

6

employs or retains an individual in violation of this

7

paragraph shall terminate the employment of the individual

8

and be subject to a penalty under section 1518(c) (relating

9

to prohibited acts; penalties).

10

(13.1)  No independent contractor or employee of an

11

independent contractor whose duties substantially involve

12

consultation relating to licensing, enforcement or the

13

development or adoption of regulations or policy related to

14

gaming under this part shall:

15

(i)  Accept employment with or be retained by an

16

applicant or licensed entity, or an affiliate,

17

intermediary, subsidiary or holding company of an

18

applicant or licensed entity, for a period of one year

19

after the termination of the contract with the board.

20

(ii)  Appear before the board in any hearing or

21

proceeding or participate in any other activity on behalf

22

of an applicant, licensee, permittee or licensed entity,

23

or an affiliate, intermediary, subsidiary or holding

24

company of an applicant, licensee or licensed entity, for

25

a period of two years after termination of employment

26

with the independent contractor or termination of the

27

contract with the board.

28

Each contract between the board and an independent contractor

29

shall contain a provision requiring the independent

30

contractor and each employee of the independent contractor

- 260 -

 


1

subject to this paragraph to sign an affidavit to not accept

2

employment with or be retained by any applicant or licensed

3

entity, or an affiliate, intermediary, subsidiary or holding

4

company of an applicant or licensed entity, for a period of

5

one year following the termination of the contract with the

6

board or one year following termination of employment with

7

the independent contractor, as the case may be. If an

8

independent contractor or an employee of an independent

9

contractor refuses or otherwise fails to sign the affidavit,

10

the board shall terminate the contract. An applicant or

11

licensed entity, or an affiliate, intermediary, subsidiary or

12

holding company of an applicant or licensed entity, shall not

13

employ or retain an individual who signed an affidavit

14

required by this paragraph until the expiration of the one-

15

year period required by this paragraph for the acceptance of

16

employment. An applicant or licensed entity, or an affiliate,

17

intermediary, subsidiary or holding company of an applicant

18

or licensed entity, that knowingly employs or retains an

19

individual in violation of this paragraph shall terminate the

20

employment of the individual and be subject to a penalty

21

under section 1518(c).

22

(13.2)  Nothing under paragraph (13) or (13.1) shall

23

prevent a current or former employee of the board, a current

24

or former independent contractor or a current or former

25

employee of an independent contractor from appearing before

26

the board in any hearing or proceeding as a witness or

27

testifying as to any fact or information.

28

(14)  [Upon the written request of an employee of the

29

board, the executive branch of the Commonwealth or a

30

political subdivision or of the agency or political

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1

subdivision employing an employee, the State Ethics

2

Commission shall determine whether the individual's duties

3

substantially involve the development or adoption of

4

regulations or policy, licensing or enforcement under this

5

part and shall provide a written determination to the

6

employee to include any prohibition under this paragraph. An

7

individual who] The State Ethics Commission shall issue a

8

written determination of whether a person is subject to

9

paragraph (13) or (13.1) upon the written request of the

10

person or the person's employer or potential employer. A

11

person that relies in good faith on a determination issued 

12

under this paragraph shall not be subject to any penalty for

13

an action taken, provided that all material facts set forth

14

in the request for [a] the determination are correct.

15

(14.1)  The State Ethics Commission shall publish a list

16

of all employment positions within the board and employment

17

positions within independent contractors whose duties would

18

subject the individuals in those positions to the provisions

19

of paragraphs (13) and (13.1). The board and each independent

20

contractor shall assist the State Ethics Commission in the

21

development of the list, which shall be published by the

22

State Ethics Commission in the Pennsylvania Bulletin

23

biennially and posted by the board on the board's Internet

24

website. Upon request, employees of the board and each

25

independent contractor shall have a duty to provide the State

26

Ethics Commission with adequate information to accurately

27

develop and maintain the list. The State Ethics Commission

28

may impose a civil penalty under 65 Pa.C.S. § 1109(f)

29

(relating to penalties) upon an individual who fails to

30

cooperate with the State Ethics Commission under this

- 262 -

 


1

paragraph. An individual who relies in good faith on the list

2

published by the State Ethics Commission shall not be subject

3

to any penalty for a violation of paragraph (13) or (13.1).

4

(15)  If a member[, employee or independent contractor] 

5

of the board violates any provision of this section, the

6

appointing authority [or the board may, upon notice and

7

hearing,] may remove the person from the board[, withdraw the

8

appointment or terminate the employment or contract, and the

9

person shall be ineligible for future appointment, employment

10

or contract with the board and for approval of a license or

11

permit under this part for a period of two years thereafter].

12

A member removed under this paragraph shall, for a period of

13

five years following removal, be prohibited from future

14

appointment to the board and shall be prohibited from

15

applying for a license, permit or other authorization under

16

this part and from becoming an independent contractor or

17

registering as a licensed entity representative.

18

* * *

19

(k)  Appointments.--The appointing authorities shall make

20

their initial appointments within 60 days of the effective date

21

of this part. Appointments to fill a vacancy shall be made

22

within 60 days of the creation of the vacancy. No appointment

23

shall be final until receipt by the appointing authority of the

24

required background investigation of the appointee by the

25

Pennsylvania State Police which shall be completed within 30

26

days. No person who has been convicted in any domestic or

27

foreign jurisdiction of a felony, infamous crime or gaming

28

offense shall be appointed to the board.

29

* * *

30

(m.1)  Budgetary impasse.--If, in the event of a budgetary or

- 263 -

 


1

other fiscal crisis, the Governor orders the furlough of

2

Commonwealth employees, the board and its employees and all

3

employees of the department and the Pennsylvania State Police

4

whose duties involve the regulation and oversight of gaming

5

under this part shall not be subject to furlough and shall

6

continue to perform their duties of employment.

7

* * *

8

Section 3.1.  Section 1201.1(a)(1) of Title 4 is amended to

9

read:

10

§ 1201.1.  Applicability of other statutes.

11

(a)  General rule.--The following acts shall apply to the

12

board:

13

(1)  The act of [June 21, 1957 (P.L.390, No.212),

14

referred to] February 14, 2008 (P.L.6, No.3), known as the

15

Right-to-Know Law.

16

* * *

17

Section 4.  Section 1202(a)(1) and (2) and (b)(7), (20) and

18

(23) of Title 4 are amended and subsection (b) is amended by

19

adding paragraphs to read:

20

§ 1202.  General and specific powers.

21

(a)  General powers.--

22

(1)  The board shall have general and sole regulatory

23

authority over the conduct of gaming or related activities as

24

described in this part. The board shall ensure the integrity

25

of the acquisition and operation of slot machines, table

26

games, table game devices and associated equipment and shall

27

have sole regulatory authority over every aspect of the

28

authorization [and], operation and play of slot machines and

29

table games.

30

(2)  The board shall employ individuals as necessary to

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1

carry out the powers and duties of the board, who shall serve

2

at the board's pleasure. An employee of the board shall be

3

considered a State employee for purposes of 71 Pa.C.S. Pt.

4

XXV (relating to retirement for State employees and

5

officers). For the purposes of this paragraph, the board

6

shall not be considered an executive or independent agency

7

under the act of October 15, 1980 (P.L.950, No.164), known as

8

the Commonwealth Attorneys Act. The board shall not take

9

final action to fill any vacancy in the position of executive

10

director of the board, director of the bureau, chief counsel

11

of the board or director of the Office of Enforcement Counsel

12

until receipt and review of the results of the individual's

13

background investigation under section 1517(c)(1.1) (relating

14

to investigations and enforcement).

15

* * *

16

(b)  Specific powers.--The board shall have the specific

17

power and duty:

18

* * *

19

(7)  To administer oaths, examine witnesses and issue

20

subpoenas compelling the attendance of witnesses or the

21

production of documents and records or other evidence[. The

22

provisions of this paragraph shall apply to designated

23

officers and employees.], or to designate officers or

24

employees to perform these duties.

25

* * *

26

(12.1)  At its discretion, to award, revoke, suspend,

27

condition or deny a table game operation certificate to a

28

slot machine licensee in accordance with Chapter 13A

29

(relating to table games).

30

* * *

- 265 -

 


1

(20)  In addition to the power of the board regarding

2

license and permit applicants, to determine at its discretion

3

the suitability of any person who furnishes or seeks to

4

furnish to a slot machine licensee directly or indirectly any

5

goods, services or property related to slot machines, table

6

games, table game devices or associated equipment or through

7

any arrangements under which that person receives payment

8

based directly or indirectly on earnings, profits or receipts

9

from the slot machines, table games, table game devices and

10

associated equipment. The board may require any such person

11

to comply with the requirements of this part and the

12

regulations of the board and may prohibit the person from

13

furnishing the services or property.

14

* * *

15

(23)  The board shall not approve an application for or 

16

issue or renew a license, certificate, registration or permit

17

unless it is satisfied that the applicant has demonstrated by

18

clear and convincing evidence that the applicant is a person

19

of good character, honesty and integrity and is a person

20

whose prior activities, criminal record, if any, reputation,

21

habits and associations do not pose a threat to the public

22

interest or the effective regulation and control of slot

23

machine or table game operations or create or enhance the

24

danger of unsuitable, unfair or illegal practices, methods

25

and activities in the conduct of slot machine or table game 

26

operations or the carrying on of the business and financial

27

arrangements incidental thereto.

28

* * *

29

(27.1)  To publish each January in the Pennsylvania

30

Bulletin and on the Pennsylvania Gaming Control Board's

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1

Internet website a complete list of all slot machine

2

licensees who filed a petition seeking authorization to

3

conduct table games and the status of each petition or table

4

game operation certificate.

5

* * *

6

(31)  To collect and post information on its Internet

7

website with sufficient detail to inform the public of each

8

person with a controlling interest or ownership interest in

9

an applicant for a slot machine license or a licensed gaming

10

entity, or affiliate, intermediary, subsidiary or holding

11

company of an applicant or licensed gaming entity. The

12

posting shall include:

13

(i)  If the applicant or licensed gaming entity, or

14

any affiliate, intermediary, subsidiary or holding

15

company of the applicant or licensed gaming entity, is a

16

publicly traded domestic or foreign corporation,

17

partnership, limited liability company or other legal

18

entity, the names of all persons with a controlling

19

interest.

20

(ii)  If the applicant or licensed gaming entity, or

21

any affiliate, intermediary, subsidiary or holding

22

company of the applicant or licensed gaming entity, is a

23

privately held domestic or foreign corporation,

24

partnership, limited liability company or other legal

25

entity, the names of all persons with an ownership

26

interest equal to or greater than 1%.

27

(iii)  The name of any person entitled to cast the

28

vote of a person named under subparagraph (i) or (ii).

29

(iv)  The names of all officers, directors and

30

principals of the applicant or licensed gaming entity.

- 267 -

 


1

(32)  To appoint a trustee as prescribed in section 1332

2

(relating to appointment of trustee).

3

(33)  To adopt regulations governing the postemployment

4

limitations and restrictions applicable to members and to

5

employees of the board subject to section 1201(h)(13)

6

(relating to Pennsylvania Gaming Control Board established).

7

In developing these regulations, the board may consult with

8

the State Ethics Commission, other governmental agencies and

9

the disciplinary board of the Supreme Court of Pennsylvania

10

regarding postemployment limitations and restrictions on

11

members and employees of the board who are members of the

12

Pennsylvania Bar.

13

(34)  To review detailed site plans identifying a

14

petitioner's proposed table game area within a licensed

15

facility to determine the adequacy of the proposed internal

16

and external security and proposed surveillance measures.

17

Section 5.  Section 1202.1 of Title 4 is amended to read:

18

§ 1202.1.  Code of conduct.

19

(a)  Scope.--The board shall adopt a comprehensive code of

20

conduct prior to the consideration of any license, permit or

21

registration application. The code of conduct shall supplement

22

all other requirements under this part and 65 Pa.C.S. Pt. II

23

(relating to accountability) and shall provide guidelines

24

applicable to members, employees of the board, independent

25

contractors [of the board] and the immediate [families] family 

26

of the members, employees and independent contractors to enable

27

them to avoid any perceived or actual conflict of interest and

28

to promote public confidence in the integrity and impartiality

29

of the board. At a minimum, the code of conduct adopted under

30

this section shall include registration of licensed entity

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1

representatives under subsection (b) and the restrictions under

2

[subsection (c)] subsections (c) and (c.1).

3

(b)  Registration.--

4

(1)  A licensed entity representative shall register with

5

the board in a manner prescribed by the board, which shall

6

include the name, employer or firm, business address[,] and

7

business telephone number of both the licensed entity

8

representative and [the] any licensed entity, applicant for

9

licensure or other person being represented.

10

(2)  A licensed entity representative shall have an

11

[ongoing] affirmative duty to update its registration

12

information on an ongoing basis and failure to do so shall be

13

punishable by the board.

14

(3)  The [registration list] board shall maintain a

15

registration list which shall contain the information

16

required under paragraph (1) and which shall be available for

17

public inspection at the offices of the board and on the

18

board's Internet website.

19

(c)  Restrictions.--[A] In addition to the other prohibitions

20

contained in this part, a member [of the board] shall:

21

(1)  [Not engage in any ex parte communication with any

22

person.] (Reserved).

23

(2)  Not accept any discount, gift, gratuity,

24

compensation, travel, lodging or other thing of value,

25

directly or indirectly, from any applicant[, licensee,]; 

26

licensed entity; affiliate, subsidiary, or intermediary of an

27

applicant or a licensed entity; permittee[,]; registrant; or

28

licensed entity representative [thereof].

29

(3)  Disclose and [disqualify] recuse himself from any

30

hearing or other proceeding in which the member's

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1

objectivity, impartiality, integrity or independence of

2

judgment may be reasonably questioned due to the member's

3

relationship or association with a party connected to any

4

hearing or proceeding or a person appearing before the board.

5

(4)  Refrain from any financial or business dealing which

6

would tend to reflect adversely on the member's objectivity,

7

impartiality or independence of judgment.

8

(5)  Not hold or campaign for public office, hold an

9

office in any political party or political committee as

10

defined in section 1513(d) (relating to political influence),

11

contribute to or solicit contributions to a political

12

campaign, [party,] political party, political committee or

13

candidate, publicly endorse a candidate or actively

14

participate in a political campaign.

15

(6)  Not solicit funds for any charitable, educational,

16

religious, health, fraternal, civic or other nonprofit entity

17

from [an] any applicant, licensed entity, party, permittee,

18

registrant or licensed entity representative, or from any 

19

affiliate, subsidiary, intermediary or holding company of [a]

20

any applicant, licensed entity, [interested] party or

21

licensed entity representative. [A board] Subject to the

22

provisions of section 1201(h)(4.1), a member may serve as an

23

officer, employee or member of the governing body of a

24

nonprofit entity and may attend, make personal contributions

25

to and plan or preside over the entity's fundraising events.

26

A [board] member may permit his name to appear on the

27

letterhead used for fundraising events if the letterhead

28

contains only the [board] member's name and position with the

29

nonprofit entity.

30

(7)  Not meet or engage in discussions with any

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1

applicant, [person licensed under this part or a] licensed

2

entity, permittee, registrant, licensed entity

3

representative, person who provides goods, property or

4

services to a slot machine licensee or any other person or

5

entity under the jurisdiction of the board unless the meeting

6

or discussion occurs on the business premises of the board

7

and is recorded in a log [maintained for this purpose]. The

8

log shall be available for public inspection during the

9

regular business hours of the board and shall be posted on

10

the board's Internet website. The log shall include the date

11

and time of the meeting or discussion, the names of the

12

participants and the subject discussed. The provisions of

13

this paragraph shall not apply to meetings [of the board] to

14

consider matters requiring the physical inspection of the

15

equipment or premises of an applicant or a licensed entity

16

[at their location] provided the meeting is entered in the

17

log.

18

(8)  Avoid impropriety and the appearance of impropriety

19

at all times and observe standards and conduct that promote

20

public confidence in the oversight of gaming.

21

(9)  Comply with any other laws, rules or regulations

22

relating to the conduct of a member.

23

(c.1)  Ex parte communications.--

24

(1)  No member or hearing officer of the board shall

25

engage in any ex parte communication with any person. No

26

attorney of the Office of Chief Counsel advising the board on

27

a particular licensing issue or proceeding shall engage in

28

any ex parte communication with any person.

29

(2)  No attorney representing the bureau or the Office of

30

Enforcement Counsel or an applicant, licensee or permittee in

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1

any proceeding, shall engage in an ex parte communication

2

with a member, an attorney of the Office of Chief Counsel who

3

is advising the board on a proceeding or a hearing officer of

4

the board.

5

(3)  No employee of the bureau or the Office of

6

Enforcement Counsel shall engage in an ex parte communication

7

with a member, an attorney of the Office of Chief Counsel who

8

is advising the board on a proceeding or a hearing officer of

9

the board.

10

(c.2)  Procedures relating to ex parte communications.--

11

(1)  An ex parte communication received or engaged in by

12

a member or hearing officer shall be recorded in a log. The

13

log shall be available for public inspection during the

14

regular business hours of the board and shall be posted on

15

the board's Internet website. The log shall include:

16

(i)  The name of the individual documenting the ex

17

parte communication.

18

(ii)  The date and time of the ex parte

19

communication.

20

(iii)  The names of all individuals involved in the

21

ex parte communication.

22

(iv)  The subject discussed.

23

(2)  In addition to documenting an ex parte communication

24

under paragraph (1), notification of the substance of the

25

communication and an opportunity to respond shall be provided

26

to all parties to a hearing or other proceeding directly

27

affected by the anticipated vote or action of the hearing

28

officer or board related to the ex parte communication.

29

(3)  (i)  A member or hearing officer who engaged in or

30

received an ex parte communication shall recuse himself

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1

from any hearing or other proceeding related to the ex

2

parte communication if the context and substance of the

3

ex parte communication creates substantial reasonable

4

doubt as to the individual's ability to act objectively,

5

independently or impartially.

6

(ii)  A member or hearing officer who engaged in or

7

received an ex parte communication who elects not to

8

recuse himself from a hearing or other proceeding shall

9

state his reasons for not recusing himself on the record

10

prior to the commencement of the hearing or proceeding.

11

(iii)  If a legislative appointee recuses himself

12

from any hearing or other proceeding under this section,

13

any qualified majority vote required under this part

14

shall consist of all of the remaining legislative

15

appointees and at least two gubernatorial appointees.

16

(iv)  Failure of a hearing officer who engaged in or

17

received an ex parte communication to recuse himself from

18

a hearing or other proceeding when required under

19

subparagraph (i) shall be grounds for appeal to the

20

board.

21

(v)  Failure of a member who engaged in or received

22

an ex parte communication to recuse himself from a

23

hearing or other proceeding when required under

24

subparagraph (i) shall be grounds for appeal to a court

25

of competent jurisdiction if the board action being

26

appealed could not have occurred without the

27

participation of the member.

28

(4)  This subsection shall not preclude a member from

29

consulting with other members individually if the

30

consultation complies with 65 Pa.C.S. Ch. 7 (relating to

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1

open meetings) or with employees or independent

2

contractors whose functions are to assist the board in

3

carrying out its adjudicative functions.

4

(d)  Ex officio members.--The restrictions under subsection

5

(c)(5) shall not apply to ex officio members.

6

(e)  Definitions.--As used in this section, the following

7

words and phrases shall have the meanings given to them in this

8

subsection:

9

"Ex parte communication."  An off-the-record communication

10

engaged in or received by a member or [employee] hearing officer 

11

of the board regarding the merits of or any fact in issue

12

relating to a pending matter before the board or hearing officer

13

or which may reasonably be expected to come before the board or

14

hearing officer in a contested on-the-record proceeding. The

15

term shall not include off-the-record communications by or

16

between a member or [employee] hearing officer of the board,

17

[Department of Revenue] department, Pennsylvania State Police,

18

Attorney General or other law enforcement official prior to the

19

beginning of the proceeding solely for the purpose of seeking

20

clarification or correction to evidentiary materials intended

21

for use in the proceedings. The term shall also not include

22

communications between the board or a member and the office of

23

chief counsel.

24

["Licensed entity representative."  A person acting on behalf

25

of or representing the interest of any applicant, licensee,

26

permittee or registrant, including an attorney, agent or

27

lobbyist, regarding any matter which may reasonably be expected

28

to come before the board.]

29

Section 6.  Title 4 is amended by adding a section to read:

30

§ 1202.2.  Expenses of regulatory agencies.

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1

(a)  Reimbursement.--Members and employees of the board,

2

employees of the department and the Office of Attorney General,

3

and troopers and employees of the Pennsylvania State Police,

4

whose duties involve the regulation or enforcement of gaming

5

under this part who are seeking reimbursement from funds which

6

are or will be paid by an applicant for a slot machine license

7

or a slot machine licensee or from the assessments made by the

8

department under section 1402(a)(relating to gross terminal

9

revenue deductions) may be reimbursed only for actual and

10

reasonable expenses incurred during the performance of their

11

duties under this part.

12

(b)  Receipts.--In order to receive reimbursement for an

13

expense under subsection (a), the individual seeking

14

reimbursement must submit a receipt to the appropriate agency

15

documenting the expense incurred. Receipts and requests for

16

reimbursement shall be financial records for purposes of, and

17

subject to redaction under, the act of February 14, 2008 (P.L.6,

18

No.3), known as the Right-to-Know Law.

19

Section 7.  Section 1204 of Title 4 is amended to read:

20

§ 1204.  Licensed gaming entity application appeals from board.

21

The Supreme Court of Pennsylvania shall be vested with

22

exclusive appellate jurisdiction to consider appeals of any

23

final order, determination or decision of the board involving

24

the approval, issuance, denial or conditioning of a slot machine

25

license or the award, denial or conditioning of a table game

26

operation certificate. Notwithstanding the provisions of 2

27

Pa.C.S. Ch. 7 Subch. A (relating to judicial review of

28

Commonwealth agency action) and 42 Pa.C.S. § 763 (relating to

29

direct appeals from government agencies), the Supreme Court

30

shall affirm all final orders, determinations or decisions of

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1

the board involving the approval, issuance, denial or

2

conditioning of a slot machine license or the award, denial or

3

conditioning of a table game operation certificate unless it

4

shall find that the board committed an error of law or that the

5

order, determination or decision of the board was arbitrary and

6

there was a capricious disregard of the evidence.

7

Section 7.1.  Section 1205(b)(1) and (2) of Title 4 are

8

amended and the subsection is amended by adding a paragraph to

9

read:

10

§ 1205.  License or permit application hearing process; public

11

input hearings.

12

* * *

13

(b)  Public input hearing requirement.--

14

(1)  [Prior to licensing a facility under this part, the

15

board shall hold at least one public input hearing on the

16

matter.] The board shall hold at least one public input

17

hearing prior to:

18

(i)  Approving a slot machine license application or

19

renewing a slot machine license.

20

(ii)  Approving the structural redesign of a licensed

21

facility located in a city of the first class.

22

(2)  All public input hearings [relating to an

23

application for a slot machine license] under paragraph (1) 

24

shall be held in the municipality where the licensed facility

25

will be, or is, located and shall be organized in cooperation

26

with the municipality.

27

* * *

28

(4)  In addition to any witnesses scheduled to testify

29

under paragraph (3), the board shall establish a public

30

comment period during which time members of the public may

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1

address the board regarding the application, license or

2

proposed structural redesign. The board, in its discretion,

3

may place reasonable time limits on an individual's comments.

4

Section 8.  Section 1206(f) of Title 4 is amended to read:

5

§ 1206.  Board minutes and records.

6

* * *

7

(f)  Confidentiality of information.--[All]

8

(1)  The following information submitted by an applicant,

9

permittee or licensee pursuant to section 1310(a) (relating

10

to slot machine license application character requirements)

11

or 1308(a.1) (relating to applications for license or permit) 

12

or obtained by the board or the bureau as part of a

13

background or other investigation from any source shall be

14

[considered] confidential[.] and withheld from public

15

disclosure:

16

(i)  All information relating to character, honesty

17

and integrity, including family, habits, reputation,

18

history of criminal activity, business activities,

19

financial affairs and business, professional and personal

20

associations submitted under section 1310(a) or 1308(a.1)

21

or otherwise obtained by the board or the bureau.

22

(ii)  Nonpublic personal information, including home

23

addresses, telephone numbers and other personal contact

24

information, Social Security numbers, educational

25

records, memberships, medical records, tax returns and

26

declarations, actual or proposed compensation, financial

27

account records, creditworthiness or financial condition

28

relating to an applicant, licensee or permittee or the

29

immediate family thereof.

30

(iii) Information relating to proprietary

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1

information, trade secrets, patents or exclusive

2

licenses, architectural and engineering plans and

3

information relating to competitive marketing materials

4

and strategies, which may include customer-identifying

5

information or customer prospects for services subject to

6

competition.

7

(iv)  Security information, including risk prevention

8

plans, detection and countermeasures, location of count

9

rooms, emergency management plans, security and

10

surveillance plans, equipment and usage protocols and

11

theft and fraud prevention plans and countermeasures.

12

(v)  Information with respect to which there is a

13

reasonable possibility that public release or inspection

14

of the information would constitute an unwarranted

15

invasion into personal privacy of any individual as

16

determined by the board.

17

(vi)  Records of an applicant or licensee not

18

required to be filed with the Securities and Exchange

19

Commission by issuers that either have securities

20

registered under section 12 of the Securities Exchange

21

Act of 1934 (48 Stat. 881, 15 U.S.C. § 78a et seq.) or

22

are required to file reports under section 15(d) of the

23

Securities Exchange Act of 1934.

24

(vii)  Records considered nonpublic matters or

25

information by the Securities and Exchange Commission as

26

provided by 17 CFR 200.80 (relating to commission records

27

and information).

28

(viii)  Any financial information deemed confidential

29

by the board upon a showing of good cause by the

30

applicant or licensee.

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1

(2)  No claim of confidentiality shall be made regarding

2

any criminal history record information that is available to

3

the public under 18 Pa.C.S. § 9121(b) (relating to general

4

regulations).

5

(3)  No claim of confidentiality shall be made regarding

6

any record in possession of the board that is otherwise

7

publicly available from a Commonwealth agency, local agency

8

or another jurisdiction.

9

(3.1)  Notwithstanding paragraph (1)(iii), for purposes

10

of a public input hearing under this part, the board may

11

release architectural renderings or models depicting a

12

proposed structural design or redesign of the licensed

13

facility that is the subject of the hearing.

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 or licensee and does not

24

otherwise contain confidential information about another

25

person.

26

(5)  The board may seek a voluntary waiver of

27

confidentiality from an applicant or licensee but may not

28

require any applicant or licensee to waive any

29

confidentiality provided for in this subsection as a

30

condition for the approval of an application, renewal of a

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1

license or any other action of the board. [Any person who

2

violates this subsection shall]

3

(6)  No current or former member and no current or former

4

employee, agent or independent contractor of the board, the

5

department, the Pennsylvania State Police, the Office of

6

Attorney General or any other Executive-branch office who has

7

obtained confidential information in the performance of

8

duties under this part, shall intentionally and publicly

9

disclose the information to any person, knowing that the

10

information being disclosed is confidential under this

11

subsection, unless the person is authorized by law to receive

12

it. A violation of this subsection constitutes a misdemeanor

13

of the third degree. In addition, an employee, agent or

14

independent contractor who violates this subsection shall be

15

administratively disciplined by discharge, suspension,

16

termination of contract or other formal disciplinary action

17

as [the board deems] appropriate. If a current member

18

violates this paragraph, the other members shall refer the

19

matter to the current member's appointing authority.

20

* * *

21

Section 8.1.  Section 1207(4), (5), (8), (9), (14) and (17)

22

of Title 4 are amended and the section is amended by adding

23

paragraphs to read:

24

§ 1207.  Regulatory authority of board.

25

The board shall have the power and its duties shall be to:

26

* * *

27

(4)  Require that each licensed entity provide to the

28

board its audited annual financial statements, with such

29

additional detail as the board from time to time shall

30

require, which information shall be submitted not later than

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1

[60] 90 days after the end of the licensee's fiscal year.

2

(5)  Prescribe the procedures to be followed by slot

3

machine licensees for any financial event that occurs in the

4

operation and play of slot machines or table games.

5

* * *

6

(7.1)  Enforce prescribed hours for the operation of

7

table games so that a certificate holder may conduct table

8

games on any day during the year in order to meet the needs

9

of patrons or to meet competition.

10

(8)  Require that each licensed gaming entity prohibit

11

persons under 21 years of age from operating or using slot

12

machines or playing table games.

13

(9)  Establish procedures for the inspection and

14

certification of compliance of each slot machine, table game,

15

table game device and associated equipment prior to being

16

placed into use by a slot machine licensee.

17

* * *

18

(14)  Consult with members of the Pennsylvania State

19

Police, the Office of Attorney General, the department and

20

such other persons it deems necessary for advice regarding

21

the various aspects of the powers and duties imposed on it

22

under this part and its jurisdiction over the authorization, 

23

[and] operation and play of slot machines, table games and

24

licensed facilities.

25

* * *

26

(17)  Permit, in its discretion and upon application or

27

petition, the use of a temporary facility within which slot

28

machines and table games may be available for play or

29

operation at a licensed [gaming] facility, for a period not

30

to exceed 24 months, provided that, upon good cause shown,

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1

the board may extend permission to operate a temporary

2

facility for an additional [12-month] 24-month period.

3

(18)  In consultation with the department, establish a

4

procedure and method for determining the daily gross table

5

game revenue from play at gaming tables, including electronic

6

gaming tables and fully automated electronic gaming tables.

7

(19)  Authorize an employee of the board to approve, deny

8

or condition a certificate holder's request to decrease the

9

number of slot machines in operation at its licensed

10

facility. An employee may not approve a requested decrease in

11

the number of slot machines under this paragraph if the

12

requested decrease exceeds 2% of the total number of slot

13

machines in operation at the certificate holder's licensed

14

facility. At no time shall the number of slot machines in

15

operation at a Category 1 or Category 2 licensed facility be

16

less than 1,500.

17

(20)  Approve, in its discretion, a reduction in the

18

number of slot machines in operation at a licensed facility

19

under the following circumstances:

20

(i)  For the duration of any renovation, remodeling

21

or modification of an area of a licensed facility where

22

slot machines are located.

23

(ii)  To enable the licensed facility to respond to

24

an emergency.

25

(iii)  In response to market conditions.

26

At no time shall the number of slot machines in operation at

27

a Category 1 or Category 2 licensed facility be less than

28

1,500.

29

Section 8.2.  Sections 1208(1), 1209(b) and (f) and 1210 of

30

Title 4 are amended to read:

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1

§ 1208.  Collection of fees and fines.

2

The board has the following powers and duties:

3

(1)  To levy and collect fees from the various

4

applicants, licensees and permittees to fund the operations

5

of the board. [The] Unless otherwise provided in this part,

6

the fees shall be deposited into the State Gaming Fund as

7

established in section 1403 (relating to establishment of

8

State Gaming Fund and net slot machine revenue distribution)

9

and distributed to the board upon appropriation by the

10

General Assembly. In addition to the fees set forth in

11

sections 1209 (relating to slot machine license fee) and 1305

12

(relating to Category 3 slot machine license), the board

13

shall assess and collect fees as follows:

14

(i)  [Supplier] Subject to subparagraph (i.1),

15

supplier licensees shall pay [a]:

16

(A)  A fee of $25,000 upon the issuance of a

17

license [and $10,000 for the annual renewal of a

18

supplier license.] to supply slot machines or

19

associated equipment used in connection with slot

20

machines.

21

(B)  A fee of $25,000 upon the issuance of a

22

license to supply table game devices or associated

23

equipment used in connection with table games or

24

table game devices.

25

(C)  A fee of $15,000 for the annual renewal of

26

the appropriate supplier license. Upon the extension

27

of the renewal period under section 1317(c)(1)

28

(relating to supplier licenses), the fee shall be

29

$45,000 for the renewal.

30

(ii)  [Manufacturer] Subject to subparagraph (ii.1),

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1

manufacturer licensees shall pay [a]:

2

(A)  A fee of $50,000 upon the issuance of a

3

license [and $25,000 for the annual renewal of a

4

manufacturer license.] to manufacture slot machines

5

and associated equipment used in connection with slot

6

machines.

7

(B)  A fee of $50,000 upon the issuance of a

8

license to manufacture table game devices or

9

associated equipment used in connection with table

10

games or table game devices.

11

(C)  A fee of $30,000 for the annual renewal of

12

the appropriate manufacturer license. Upon the

13

extension of the renewal period under section

14

1317.1(c)(1) (relating to manufacturer licenses), the

15

fee shall be $90,000 for the renewal.

16

(iii)  Each application for a slot machine license,

17

supplier license or manufacturer license must be

18

accompanied by a nonrefundable fee set by the board for

19

the cost of each individual requiring a background

20

investigation. The reasonable and necessary costs and

21

expenses incurred in any background investigation or

22

other investigation or proceeding concerning any

23

applicant, licensee, permittee or registrant shall be

24

reimbursed to the board by those persons.

25

* * *

26

§ 1209.  Slot machine license fee.

27

* * *

28

(b)  Term.--A slot machine license, after payment of the fee,

29

shall be in effect unless suspended, revoked or not renewed by

30

the board upon good cause consistent with the license

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1

requirements as provided for in this part. Slot machine

2

licensees shall be required to update the information in their

3

initial applications annually, and the license of a licensee in

4

good standing shall be [updated and] renewed [annually] every

5

three years. Nothing in this subsection shall relieve a licensee

6

of the affirmative duty to notify the board of any changes

7

relating to the status of its license or to any other

8

information contained in the application materials on file with

9

the board. As to the renewal of a license, except as required in

10

subsection (f)(1), no additional license fee pursuant to

11

subsection (a) shall be required.

12

* * *

13

(f)  Return of slot machine license fee.--

14

(1)  The entire one-time slot machine license fee of

15

$50,000,000 for each Category 1 and Category 2 slot machine

16

license shall be returned to each licensee in the event

17

section 1201 (relating to Pennsylvania Gaming Control Board

18

established), 1202 (relating to general and specific powers)

19

or 1307 (relating to number of slot machine licenses) is

20

amended or otherwise altered by an act of the General

21

Assembly, within five years following the [initial issuance

22

of any slot machine licenses pursuant to section 1301

23

(relating to authorized slot machine licenses)] date

24

established by the board as the deadline for the initial

25

submission of Category 1 and Category 2 slot machine license

26

applications, to change:

27

(i)  the composition of the board;

28

(ii)  the number or voting powers of members of the

29

board;

30

(iii)  the manner in which members are nominated or

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1

appointed to the board;

2

(iv)  the length of term for which each member

3

serves;

4

(v)  the general jurisdiction of the board in a

5

manner that impairs or otherwise reduces the board's

6

licensing authority; or

7

(vi)  section [1307] 1307(a) to increase the

8

statutory maximum number of permissible Category 1 or

9

Category 2 licensed facilities.

10

(2)  In the event that [this part is amended or otherwise

11

altered by an act of] the General Assembly [as] acts in the

12

manner described [pursuant to] in paragraph (1):

13

(i)  In the sixth year following the [initial

14

issuance of any slot machine licenses pursuant to section

15

1301] date established by the board as the deadline for

16

the initial submission of Category 1 and Category 2 slot

17

machine license applications, a Category 1 and Category 2

18

slot machine licensee shall be entitled to a partial

19

return of the one-time slot machine license fee in the

20

amount of $41,666,667.

21

(ii)  In the seventh year, [the] each Category 1 and

22

Category 2 slot machine licensee shall be entitled to a

23

partial return of the one-time slot machine license fee

24

in the amount of $33,333,334.

25

(iii)  In the eighth year, [the] each Category 1 and

26

Category 2 slot machine licensee shall be entitled to a

27

partial return of the one-time slot machine license fee

28

in the amount of $25,000,000.

29

(iv)  In the ninth year, [the] each Category 1 and

30

Category 2 slot machine licensee shall be entitled to a

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1

partial return of the one-time slot machine license fee

2

in the amount of $16,666,668.

3

(v)  In the tenth year, [the] each Category 1 and

4

Category 2 slot machine licensee shall be entitled to a

5

partial return of the one-time machine license fee in the

6

amount of $8,333,334.

7

(2.1)  In the event that the [action] General Assembly

8

acts in the manner described in paragraph (1) [occurs] after

9

the expiration of ten years, [the licensee] Category 1 and

10

Category 2 slot machine licensees shall not be entitled to a

11

return of any portion of the one-time slot machine license

12

fee. Notwithstanding the foregoing, no slot machine licensee

13

shall be entitled to the return of any portion of the fee as

14

a result of any act of the General Assembly insofar as it

15

implements a recommendation made by the board pursuant to a

16

qualified majority vote. In the event a full or partial

17

return of the slot machine license fee imposed pursuant to

18

subsection (a) becomes due pursuant to this subsection, the

19

amount to be returned to any slot machine licensee shall be

20

reduced on a dollar-for-dollar basis by the total accumulated

21

tax credits granted to such licensee pursuant to subsection

22

(c). In no event shall the total amount of the slot machine

23

license fee returned to a Category 1 or Category 2 licensee,

24

combined with the total tax credits granted, exceed the

25

amounts set forth in this subsection for any licensee. The

26

total or partial return of the slot machine license fee shall

27

extinguish a licensee's right to claim any further tax

28

credits pursuant to subsection (c) and to make any future

29

claim for the return of the slot machine license fee.

30

(3)    Within ten days following a determination that a

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1

slot machine licensee is entitled to the return of any

2

portion of the slot machine license fee paid by the slot

3

machine licensee based on the provisions of this section or

4

based on a contract executed by a slot machine licensee and

5

the department under subsection (c), the board shall

6

immediately assess a one-time slot machine license renewal

7

fee on each slot machine licensee in an amount equal to the

8

amount of the fee returned to the slot machine licensee. The

9

renewal fee shall be paid by each slot machine licensee

10

within two business days following the return of the initial

11

fee.

12

§ 1210.  Number of slot machines.

13

(a)  Initial complement.--Except as provided for Category 3

14

slot machine licensees under section 1305 (relating to Category

15

3 slot machine license), [all] the following apply:

16

(1)  All slot machine licensees shall be permitted to

17

operate up to 3,000 slot machines at any one licensed

18

facility [and].

19

(2)  Each slot machine licensee shall be required to

20

operate and make available to play a minimum of 1,500 slot 

21

machines at [any one] its licensed facility within one year

22

of the issuance by the board of a slot machine license

23

[unless otherwise extended by the] to the slot machine

24

licensee. The board, upon application and for good cause

25

shown, may grant an extension for an additional period [not

26

to exceed 24 months] ending on the later of 36 months from

27

the end of the initial one-year period or December 31, 2012.

28

(3)  Upon expiration of the applicable time period under

29

paragraph (2) and at all times thereafter, a slot machine

30

licensee shall be required to operate and make available to

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1

play a minimum of 1,500 slot machines at its licensed

2

facility.

3

(b)  Additional slot machines.--Except as provided for

4

Category 3 slot machine licensees under section 1305, six months

5

following the date of commencement of slot machine operations,

6

the board may permit a slot machine licensee to install and

7

operate up to 2,000 additional slot machines at its licensed

8

facility, beyond those machines [authorized] permitted under

9

subsection (a), upon application by the slot machine licensee.

10

The board, in considering such an application, shall take into

11

account the appropriateness of the physical space where the

12

additional slot machines will be located and the convenience of

13

the public attending the facility. The board may also take into

14

account the potential benefit to economic development,

15

employment and tourism, enhanced revenues to the Commonwealth

16

and other economic indicators it deems applicable in making its

17

decision.

18

[(c)  Limitation.--For the two and one-half years following

19

the beginning of slot machine operations at the licensed

20

facility, no licensed gaming entity may make available for play

21

by its patrons at its licensed facility more than 50% of slot

22

machines from the same manufacturer or its affiliate,

23

intermediary, subsidiary or holding company. The provisions of

24

this subsection shall not apply to machines purchased pursuant

25

to a contract or order executed by a conditional Category 1 or

26

Category 1 slot machine licensee prior to October 20, 2006.]

27

Section 9.  Section 1211(a) of Title 4 is amended and the

28

section is amended by adding subsections to read:

29

§ 1211.  Reports of board.

30

(a)  Report of board.--Eighteen months after the effective

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1

date of this part and every year on that date thereafter, the

2

board shall issue a report to the Governor and each member of

3

the General Assembly on the general operation of the board and

4

each slot machine licensee's performance, including, but not

5

limited to, number and win per slot machine and total gross

6

terminal revenue at each licensed [facilities] facility during

7

the previous year, all taxes, fees, fines and other revenues

8

collected and, where appropriate, disbursed, the costs of

9

operation of the board, all hearings conducted and the results

10

of the hearings and other information that the board deems

11

necessary and appropriate.

12

(a.1)  Additional reporting requirements.--No later than 12

13

months after the effective date of Chapter 13A (relating to

14

table games) and every year thereafter, the annual report

15

submitted by the board shall include information on the conduct

16

of table games as follows:

17

(1)  Total gross table game revenue.

18

(2)  The number and win by type of table game at each

19

licensed facility during the previous year.

20

(3)  All taxes, fees, fines and other revenue collected

21

and where appropriate revenue disbursed during the previous

22

year. The department shall collaborate with the board to

23

carry out the requirements of this paragraph.

24

(4)  Other information related to the conduct of table

25

games.

26

The board may require certificate holders to provide information

27

to the board to assist in the preparation of the report.

28

(a.2)  Facility responsibility.--Each Category 1 licensed

29

facility shall provide:

30

(1)  An annual report to the board and to the respective

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1

racing commission summarizing how the introduction and

2

expansion of gaming has fulfilled the intent of this part to

3

enhance live racing at the licensed racetrack.

4

(2)  Plans to promote live racing and increase live

5

handle and daily attendance at the licensed racetrack in the

6

upcoming year.

7

(a.3)  Expenses.--Beginning 30 days after the effective date

8

of this subsection, the board shall post within 45 days after

9

the end of each month on its Internet website a list of all the

10

itemized expenses of employees and members for that month that

11

were or are to be reimbursed from the assessments made by the

12

department under section 1402(a) (relating to gross terminal

13

revenue deductions) and all itemized expenses of employees of

14

the department and the Office of Attorney General and troopers

15

and employees of the Pennsylvania State Police for the preceding

16

month that were or are to be reimbursed from such assessments.

17

The list shall identify the nature of the expense, the employee,

18

member or the agency and employee of the agency to which an

19

expense is attributable. If the expense is directly attributable

20

to or paid by a licensed gaming entity, the list shall identify

21

the licensed gaming entity and if the expense was charged to the

22

licensed gaming entity. By October 1 of each year, a final

23

report of all expenses described in this subsection for the

24

preceding fiscal year shall be posted on the board's Internet

25

website and shall be submitted to the Appropriations Committee

26

of the Senate, the Community, Economic and Recreational

27

Development Committee of the Senate, the Appropriations

28

Committee of the House of Representatives and the Gaming

29

Oversight Committee of the House of Representatives. Information

30

posted on the Internet website pursuant to this subsection shall

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1

be financial records for the purposes of and subject to

2

redaction under the act of February 14, 2008 (P.L.6, No.3),

3

known as the Right-to-Know Law. The board, the department, the

4

Office of Attorney General and the Pennsylvania State Police

5

shall collaborate to develop a uniform system that will enable

6

the board to carry out the requirements of this subsection.

7

* * *

8

(e)  Submission of reports.--Notwithstanding any other

9

provision of this part, all annual reports or studies of the

10

board required to be submitted to the General Assembly under

11

this part after the effective date of this subsection shall be

12

submitted by October 1, 2010, and by October 1 of each year

13

thereafter.

14

Section 10.  Sections 1212 and 1213 of Title 4 are amended to

15

read:

16

§ 1212.  Diversity goals of board.

17

(a)  Intent.--It is the intent and goal of the General

18

Assembly that the board promote and ensure diversity in all

19

aspects of the gaming activities authorized under this part. The

20

board shall work to enhance the representation of diverse groups

21

in [the]:

22

(1)  The ownership[, participation and operation] of

23

licensed entities [and licensed facilities] in this

24

Commonwealth [and through the].

25

(2)  The ownership[, participation and operation] of

26

business enterprises associated with or utilized by licensed

27

entities [and licensed facilities] and through the provision

28

of goods and services utilized by slot machine licensees

29

under this part.

30

(3)  The operation of licensed entities and the conduct

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1

of gaming in this Commonwealth by ensuring licensed entities

2

promote the participation of diverse groups by affording

3

equal access to employment opportunities, including key

4

employee, gaming employee, and nongaming employee positions.

5

(4)  The operation of business enterprises associated

6

with or utilized by licensed entities, including business

7

enterprises that provide goods, property and services

8

utilized by slot machine licensees in this Commonwealth by

9

ensuring these business enterprises promote the participation

10

of diverse groups by affording equal access to employment

11

opportunities.

12

(5)  The construction, renovation or reconstruction of a

13

licensed facility by ensuring that all contracts and

14

subcontracts to be awarded relating to the construction,

15

renovation or reconstruction of a licensed facility contain

16

adequate provisions ensuring all contractors or

17

subcontractors and assignees, will promote the participation

18

of diverse groups in any proposed construction, renovation or

19

reconstruction project by affording equal access to

20

employment opportunities.

21

(6)  The rendering of professional services to licensed

22

entities by ensuring licensed entities promote the

23

participation of diverse groups by affording equal access to

24

professional service contractual opportunities.

25

(a.1)  Reports by licensees.--Each slot machine licensee

26

shall submit a quarterly report to the board describing

27

activities undertaken at its licensed facility related to the

28

development and implementation of its diversity plan in

29

accordance with section 1325 (relating to license or permit

30

issuance) during the prior quarter. At a minimum, the quarterly

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1

reports shall contain a summary of:

2

(1)    All employee recruitment and retention efforts

3

undertaken to ensure the participation of diverse groups in

4

employment with the slot machine licensee.

5

(2)  The total number of hires and employment offers

6

made, including data relating to the race, gender and

7

residence of those hired or offered employment.

8

(3)    All contracting and subcontracting data involving

9

the slot machine licensee and minority-owned business

10

enterprises and women-owned business enterprises.

11

(4)    Any other information deemed relevant or necessary

12

by the board to assess the slot machine licensee's diversity

13

plan.

14

(b)  [Investigations] Annual review.--The board [is

15

authorized to investigate and] shall conduct an annual [study to

16

ascertain] review of each slot machine licensee's activities

17

related to the implementation of its diversity plan in order to

18

evaluate whether the slot machine licensee has taken effective

19

and meaningful action [has been taken or will be taken to

20

enhance the] to implement a diversity plan and whether the

21

licensee's plan and any other actions taken have achieved or

22

will achieve the Commonwealth's goal of enhanced representation

23

of diverse groups in the [ownership, participation and operation

24

of licensed facilities in this Commonwealth, through the

25

ownership and operation of business enterprises associated with

26

or utilized by slot machine licensees, through the provision of

27

goods and services utilized by slot machine licensees and

28

through employment opportunities] gaming industry as set forth

29

in subsection (a).

30

(c)  Completion of investigation.--The [first study] review

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1

required under subsection (b) shall be completed six months

2

following the effective date of this [part] section, if

3

practically possible, and annually thereafter and shall contain

4

recommendations which the board determines appropriate. Each

5

review shall contain, at a minimum, a descriptive summary of the

6

following relating to each slot machine licensee's licensed

7

facility:

8

(1)  Employee recruitment and retention programs designed

9

to ensure the participation of diverse groups.

10

(2)  The total number of hires and employment offers

11

made, including data relating to the race, gender and

12

residence of individuals hired or offered employment.

13

(3)  Minority-owned business enterprise and women-owned

14

business enterprise contracting and subcontracting data.

15

(d)  Facility responsibility.--Each slot machine licensee

16

shall provide information as required by the board to enable the

17

board to complete the reviews required under subsection (b).

18

(e)  Definition.--As used in this section, the term

19

"professional services" means those services rendered to a slot

20

machine licensee which relate to a licensed facility in this

21

Commonwealth, including, but not limited to:

22

(1)  Legal services.

23

(2)  Advertising or public relations services.

24

(3)  Engineering services.

25

(4)  Architectural, landscaping or surveying services.

26

(5)  Accounting, auditing or actuarial services.

27

(6)  Security consultant services.

28

(7)  Computer and information technology services, except

29

telephone service.

30

§ 1213.  License or permit prohibition.

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1

[No applicant for a license or permit under this part,

2

including principals and key employees,] The following apply:

3

(1)  The board shall be prohibited from granting a

4

principal license or a key employee license to an individual

5

who has been convicted of a felony [or gambling] offense in

6

any jurisdiction [shall be issued a license or permit unless

7

15 years has elapsed from the date of expiration of the

8

sentence for the offense].

9

(2)  [When determining whether to issue a license or

10

permit to an applicant who has been convicted in any

11

jurisdiction of a felony or gambling offense,] In addition to

12

the prohibition under paragraph (1), the board shall be

13

prohibited from granting the following:

14

(i)  A principal license or key employee license to

15

an individual who has been convicted in any jurisdiction

16

of a misdemeanor gambling offense, unless 15 years have

17

elapsed from the date of conviction for the offense.

18

(ii)  A gaming employee permit or a license other

19

than a principal license or key employee license to an

20

individual who has been convicted in any jurisdiction of

21

a felony offense or of a misdemeanor gambling offense,

22

unless 15 years have elapsed from the date of conviction

23

for the offense.

24

(3)  Following the expiration of any prohibition period

25

applicable to an applicant under paragraph (2), in

26

determining whether to issue a license or permit, the board

27

shall consider the following factors:

28

[(1)] (i)  The nature and duties of the applicant's

29

position with the licensed entity.

30

[(2)] (ii)  The nature and seriousness of the offense

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1

or conduct.

2

[(3)] (iii)  The circumstances under which the

3

offense or conduct occurred.

4

[(4)] (iv)  The age of the applicant when the offense

5

or conduct was committed.

6

[(5)] (v)  Whether the offense or conduct was an

7

isolated or a repeated incident.

8

[(6)] (vi)  Any evidence of rehabilitation, including

9

good conduct in the community, counseling or psychiatric

10

treatment received and the recommendation of persons who

11

have substantial contact with the applicant.

12

(4)  For purposes of this section, a felony offense is

13

any of the following:

14

(i)  An offense punishable under the laws of this

15

Commonwealth by imprisonment for more than five years.

16

(ii)  An offense which, under the laws of another

17

jurisdiction, is:

18

(A)  classified as a felony; or

19

(B)  punishable by imprisonment for more than

20

five years.

21

(iii)  An offense under the laws of another

22

jurisdiction which, if committed in this Commonwealth,

23

would be subject to imprisonment for more than five

24

years.

25

Section 10.1.  Title 4 is amended by adding a section to

26

read:

27

§ 1214.  Specific authority to suspend slot machine license.

28

(a)  Conditions.--Any slot machine licensee that is required

29

as a condition of licensure to make payments to a municipality,

30

municipal authority or other entity for an economic development

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1

project, including any project enumerated in the act of July 25,

2

2007 (P.L.342, No.53), known as Pennsylvania Gaming Economic

3

Development and Tourism Fund Capital Budget Itemization Act of

4

2007, shall, within 30 days of the effective date of this

5

section or within 30 days following licensure, whichever is

6

later, enter into a written agreement with the municipality,

7

municipal authority or other entity. The written agreement shall

8

establish and govern the terms of the required payments,

9

including the amounts of each payment, the date on which each

10

payment shall be made and the duration of the payments.

11

(b)  Failure to meet conditions.--If a slot machine licensee

12

fails to enter into a written agreement as required by

13

subsection (a), the board may take any action it deems

14

necessary. An action taken by the board shall remain in effect

15

until the slot machine licensee satisfies the board that it has

16

entered into the written agreement required by subsection (a).

17

(c)  Failure to comply with written agreement.--If a slot

18

machine licensee is in default with respect to a payment

19

obligation contained in a written agreement required by

20

subsection (a), the board may take any action it deems

21

necessary. An action taken by the board shall remain in effect

22

until the slot machine licensee satisfies the board that it is

23

in compliance with the terms of the written agreement.

24

(d)  Other remedies applicable.--Nothing in this section

25

shall prohibit the board from taking any additional action,

26

including suspension or revocation of the slot machine

27

licensee's license, appointing a trustee under section 1332, or

28

imposing any other sanction permitted by this part against a

29

slot machine licensee who violates the provisions of this

30

section.

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1

Section 10.2.  Sections 1304(b), 1305(a)(1), (b)(1), (c), (d)

2

and (e) and 1307 of Title 4 are amended to read:

3

§ 1304.  Category 2 slot machine license.

4

* * *

5

(b)  Location.--

6

(1)  Two Category 2 licensed facilities and no more shall

7

be located by the board within a city of the first class, and

8

one Category 2 licensed facility and no more shall be located

9

by the board within a city of the second class. No Category 2

10

licensed facility located by the board within a city of the

11

first class shall be within ten linear miles of a Category 1

12

licensed facility regardless of the municipality where the

13

Category 1 licensed facility is located. Except for any

14

Category 2 licensed facility located by the board within a

15

city of the first class or a city of the second class, no

16

Category 2 licensed facility shall be located within 30

17

linear miles of any Category 1 licensed facility that has

18

conducted over 200 racing days per year for the two calendar

19

years immediately preceding the effective date of this part

20

and not within 20 linear miles of any other Category 1

21

licensed facility. Except for any Category 2 licensed

22

facility located by the board within a city of the first

23

class, no Category 2 licensed facility shall be located

24

within 20 linear miles of another Category 2 licensed

25

facility.

26

(2)  Within five days of approving a license for an

27

applicant with a proposed licensed facility consisting of

28

land designated a subzone, an expansion subzone or an

29

improvement subzone under the Keystone Opportunity Zone,

30

Keystone Opportunity Expansion Zone and Keystone Opportunity

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1

Improvement Zone Act for a slot machine license under this

2

section, the board shall notify the Department of Community

3

and Economic Development. The notice shall include a

4

description of the land of the proposed licensed facility

5

which is designated a subzone, an expansion subzone or an

6

improvement subzone. Within five days of receiving the notice

7

required by this paragraph, the Secretary of Community and

8

Economic Development shall decertify the land of the proposed

9

licensed facility as being a subzone, an expansion subzone or

10

an improvement subzone. Upon decertification in accordance

11

with this paragraph and notwithstanding Chapter 3 of the

12

Keystone Opportunity Zone, Keystone Opportunity Expansion

13

Zone and Keystone Opportunity Improvement Zone Act, a

14

political subdivision may amend the ordinance, resolution or

15

other required action which granted the exemptions,

16

deductions, abatements or credits required by the Keystone

17

Opportunity Zone, Keystone Opportunity Expansion Zone and

18

Keystone Opportunity Improvement Zone Act to repeal the

19

exemptions, deductions, abatements or credits for the land

20

decertified.

21

(3)    Notwithstanding any other provision of law, the

22

governing body of a city of the first class shall not exempt

23

from real property taxation or provide any real property tax

24

abatement under the act of December 1, 1977 (P.L.237, No.76),

25

known as the Local Economic Revitalization Tax Assistance

26

Act, to a Category 2 licensed facility located within the

27

city, or any improvements to such facility, unless the owner

28

of the licensed facility enters into or has entered into a

29

tax settlement agreement or payment in lieu of taxes

30

agreement with the city, including any amendments,

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1

supplements or modifications of such agreements.

2

§ 1305.  Category 3 slot machine license.

3

(a)  Eligibility.--

4

(1)  (i)  A person may be eligible to apply for a

5

Category 3 slot machine license if the applicant, its

6

affiliate, intermediary, subsidiary or holding company

7

has not applied for or been approved or issued a Category

8

1 or 2 slot machine license and the person is seeking to

9

locate a Category 3 licensed facility in a well-

10

established resort hotel having no fewer than 275 guest

11

rooms under common ownership and having substantial year-

12

round [recreational guest] amenities. The applicant for a

13

Category 3 license shall be the owner or be a wholly

14

owned subsidiary of the owner of the established resort

15

hotel. [A Category 3 license may only be granted upon the

16

express condition that an individual may not enter a

17

gaming area of the licensee if the individual is not a

18

registered overnight guest of the established resort

19

hotel or if the individual is not a patron of one or more

20

of the amenities provided by the established resort

21

hotel.] In addition to any other individual prohibited

22

under this part from entering the gaming area of a

23

licensed facility, an individual who does not meet at

24

least one of the following criteria shall also be

25

prohibited from entering the gaming area of an

26

established resort hotel for which a Category 3 license

27

has been issued:

28

(A)  The individual is a registered overnight

29

guest of the established resort hotel.

30

(B)  The individual is a patron of the amenities

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1

provided by the established resort hotel.

2

(C)  The individual possesses a membership to the

3

established resort hotel or is a guest of an

4

individual who possesses such a membership. The guest

5

must be accompanied by the individual who possesses

6

the membership when entering or remaining in the

7

gaming area of the hotel. The owner of the

8

established resort hotel may issue memberships that

9

allow for up to four guests of the membership owner

10

to enter the gaming area.

11

(ii)  Nothing in this paragraph shall be deemed to

12

prohibit an individual 18 years of age or older from

13

entering and remaining in the gaming area of an

14

established resort hotel while in the performance of

15

employment duties performed on behalf of the resort

16

hotel.

17

* * *

18

(b)  Location.--

19

(1)  Mileage requirements are as follows:

20

(i)  No Category 3 license which was authorized by

21

this part prior to December 1, 2009, regardless of when

22

issued, shall be located by the board within 15 linear

23

miles of another licensed facility.

24

(ii)  No Category 3 license which was authorized by

25

this part after November 30, 2009, shall be located by

26

the board within 30 linear miles of another licensed

27

facility.

28

* * *

29

(c)  Number of slot machines.--Notwithstanding the number of

30

permissible slot machines as set forth in section 1210 (relating

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1

to number of slot machines), a Category 3 license granted under

2

the provisions of this section shall entitle the licensed entity

3

to operate no more than 500 slot machines at the licensed

4

facility, provided, however, a Category 3 slot machine licensee

5

holding a table game operation certificate shall be entitled to

6

operate no more than 600 slot machines at its licensed facility.

7

(d)  Category 3 license fee.--[Notwithstanding the one-time

8

slot machine license fee as set forth in section 1209 (relating

9

to slot machine license fee), the] The board shall impose a one-

10

time Category 3 license fee to be paid by each successful

11

applicant in the amount of $5,000,000 to be deposited in the

12

State Gaming Fund. The provisions of section [1209 relating to

13

term, credit against tax for slot machine licensees, deposit of

14

license fee and change of ownership or control of a license

15

shall be applicable] 1209(b), (c), (d) and (e) shall apply to a

16

Category 3 [license fee] licensee.

17

(e)  Definitions.--For the purpose of subsection (a), the

18

following words and phrases shall have the meaning given to them

19

in this subsection:

20

"Amenities."  Any ancillary activities, services or

21

facilities in which a registered guest or the transient public,

22

in return for non-de minimis consideration as defined by board

23

regulation, may participate at a resort hotel, including, but

24

not limited to, sports and recreational activities and

25

facilities such as a golf course or golf driving range, tennis

26

courts or swimming pool; health spa; convention, meeting and

27

banquet facilities; entertainment facilities; and restaurant

28

facilities.

29

"Patron of the amenities."  Any individual who is a

30

registered attendee of a convention, meeting or banquet event or

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1

a participant in a sport or recreational event or any other

2

social, cultural or business event held at a resort hotel or who

3

participates in one or more of the amenities provided to

4

registered guests of the resort hotel.

5

§ 1307.  Number of slot machine licenses.

6

(a)  Category 1 and Category 2 slot machine licenses.--The

7

board may license no more than seven Category 1 licensed

8

facilities and no more than five Category 2 licensed facilities,

9

as it may deem appropriate, as long as two, and not more,

10

Category 2 [licenses] licensed facilities are located by the

11

board within the city of the first class and that one, and not

12

more, Category 2 licensed facility is located by the board

13

within the city of the second class. The board may at its

14

discretion increase the total number of Category 2 licensed

15

facilities permitted to be licensed by the board by an amount

16

not to exceed the total number of Category 1 licenses not

17

applied for within five years following the effective date of

18

this part. Except as permitted by section 1328 (relating to

19

change in ownership or control of slot machine licensee), any

20

Category 1 license may be reissued by the board at its

21

discretion as a Category 2 license if an application for

22

issuance of such license has not been made to the board. 

23

(b)  Category 3 slot machine licenses.--

24

(1)    The board may license no more than two Category 3

25

licensed facilities that shall be subject to the mileage

26

restriction under section 1305(b)(1)(i)(relating to Category

27

3 slot machine license).

28

(2)  The board may license no more than one Category 3

29

licensed facility that shall be subject to the mileage

30

restriction under section 1305(b)(1)(ii). Within ten days

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1

following the effective date of this paragraph, the board

2

shall establish an application period not to exceed 90 days

3

for the acceptance of applications for this Category 3

4

license.

5

Section 10.3.  Sections 1308 and 1309 of Title 4 are amended

6

by adding subsections to read:

7

§ 1308.  Applications for license or permit.

8

* * *

9

(a.1)  Submission of information.--An applicant for a license

10

or permit under this part shall disclose in the application all

11

arrests of the applicant and all citations issued to the

12

applicant for summary gambling offenses. The information shall

13

include:

14

(1)  A brief description of the circumstances surrounding

15

the arrest or issuance of the citation.

16

(2)  The specific offense charged.

17

(3)  The ultimate disposition of the charge, including

18

the details of any dismissal, plea bargain, conviction,

19

sentence, pardon, expungement or order of Accelerated

20

Rehabilitative Disposition.

21

No applicant shall be required to provide documentation relating

22

to any summary offense. Failure of the bureau to recover records

23

of a summary offense shall not be grounds for denying an

24

application.

25

* * *

26

§ 1309.  Slot machine license application.

27

* * *

28

(a.1)  Table games information.--

29

(1)    An applicant for a slot machine license may submit

30

with its application all information required under Chapter

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1

13A (relating to table games) and request that the board

2

consider its application for a slot machine license and a

3

table game operation certificate concurrently. All fees for a

4

table game operation certificate shall be paid by the

5

applicant in accordance with section 1361A (relating to table

6

game authorization fee).

7

(2)  The board shall permit any applicant for a slot

8

machine license that has an application pending before the

9

board on the effective date of this subsection to supplement

10

its application with all information required under Chapter

11

13A and to request that the board consider its application

12

for a slot machine license and a table game operation

13

certificate concurrently. All fees for a table game operation

14

certificate shall be paid by the applicant in accordance with

15

section 1361A.

16

* * *

17

Section 10.4.  Section 1310 of Title 4 is amended to read:

18

§ 1310.  Slot machine license application character

19

requirements.

20

(a)  Application.--

21

(1)  Every application for a slot machine license shall

22

include such information, documentation and assurances as may

23

be required to establish by clear and convincing evidence the

24

applicant's suitability, including good character, honesty

25

and integrity. Information shall include, without limitation,

26

information pertaining to family, habits, character,

27

reputation, criminal history background, business activities,

28

financial affairs and business, professional and personal

29

associates, covering at least the ten-year period immediately

30

preceding the filing date of the application.

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1

(2)  Notwithstanding 18 Pa.C.S. § 9124(b) (relating to

2

use of records by licensing agencies), in addition to the

3

information submitted under section 1308(a.1) (relating to

4

applications for license or permit), a conviction for a

5

felony offense or a misdemeanor gambling offense 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 considered by the board as part of the review

10

of the applicant's suitability under paragraph (1).

11

(b)  Civil judgments and law enforcement agency

12

information.--Each applicant shall notify the board of any civil

13

judgments obtained against the applicant pertaining to antitrust

14

or security regulation laws of the Federal Government, this

15

Commonwealth or any other state, jurisdiction, province or

16

country. In addition, each applicant shall produce a letter of

17

reference from law enforcement agencies having jurisdiction in

18

the applicant's place of residence and principal place of

19

business, which letter of reference shall indicate that the law

20

enforcement agencies do not have any pertinent information

21

concerning the applicant or, if the law enforcement agency does

22

have information pertaining to the applicant, shall specify the

23

nature and content of that information. If no letters are

24

received within 30 days of the request, the applicant may submit

25

a statement under oath which is subject to the penalty for false

26

swearing under 18 Pa.C.S. § 4903 (relating to false swearing)

27

that the applicant is or was during the period the activities

28

were conducted in good standing with the gaming or casino

29

enforcement or control agency.

30

(c)  Gaming or casino enforcement agency information.--If the

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1

applicant has held a gaming license in a jurisdiction where

2

gaming activities are permitted, the applicant shall produce a

3

letter of reference from the gaming or casino enforcement or

4

control agency which shall specify the experiences of that

5

agency with the applicant, the applicant's associates and the

6

applicant's gaming operation. If no letters are received within

7

30 days of the request, the applicant may submit a statement

8

under oath which is subject to the penalty for false swearing

9

under 18 Pa.C.S. § 4903 that the applicant is or was during the

10

period the activities were conducted in good standing with the

11

gaming or casino enforcement or control agency.

12

(d)  Agency records.--Each applicant for a slot machine

13

license, principal license or key employee license shall be

14

required to apply to each Federal agency deemed appropriate by

15

the board or bureau for agency records under the Freedom of

16

Information Act (Public Law 89-554, 5 U.S.C. § 552) pertaining

17

to the applicant and provide the bureau with the complete record

18

received from the Federal agency. The board may issue a license

19

to the applicant prior to the receipt of information under this

20

subsection.

21

Section 10.5.  Sections 1317(a) and (c)(1) and 1317.1(a), (b)

22

(5), (c), (d), (d.1) and (e) of Title 4 are amended and the

23

sections are amended by adding subsections to read:

24

§ 1317.  Supplier licenses.

25

(a)  Application.--A manufacturer that elects to contract

26

with a supplier under section 1317.1(d.1) (relating to

27

manufacturer licenses) shall ensure that the supplier is

28

appropriately licensed under this section. A person seeking to

29

provide slot machines, table game devices or associated

30

equipment to a slot machine licensee within this Commonwealth

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1

through a contract with a licensed manufacturer shall apply to

2

the board for [a] the appropriate supplier license.

3

* * *

4

(c)  Review and approval.--Upon being satisfied that the

5

requirements of subsection (b) have been met, the board may

6

approve the application and issue the applicant a supplier

7

license consistent with all of the following:

8

(1)  [The license shall be for a period of one year. Upon

9

expiration, the license may be renewed in accordance with

10

subsection (d)] The initial license shall be for a period of

11

one year and if renewed under subsection (d), the license

12

shall be for a period of three years. Nothing in this

13

paragraph shall relieve a licensee of the affirmative duty to

14

notify the board of any changes relating to the status of its

15

license or to any information contained in the application

16

materials on file with the board.

17

* * *

18

(c.1)  Abbreviated process.--In the event an applicant for a

19

supplier license to supply table game devices or associated

20

equipment used in connection with table games is licensed by the

21

board under this section to supply slot machines or associated

22

equipment used in connection with slot machines, the board may

23

determine to use an abbreviated process requiring only that

24

information determined by the board to be necessary to consider

25

the issuance of a license to supply table game devices or

26

associated equipment used in connection with table games,

27

including financial viability of the applicant. Nothing in this

28

section shall be construed to waive any fees associated with

29

obtaining a license through the normal application process. The

30

board may only use the abbreviated process if all of the

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1

following apply:

2

(1)  The supplier license was issued by the board within

3

a 36-month period immediately preceding the date the supplier

4

licensee files an initial application to supply table game

5

devices or associated equipment.

6

(2)  The person to whom the supplier license was issued

7

affirms there has been no material change in circumstances

8

relating to the license.

9

(3)  The board determines, in its sole discretion, that

10

there has been no material change in circumstances relating

11

to the licensee that necessitates that the abbreviated

12

process not be used.

13

* * *

14

§ 1317.1.  Manufacturer licenses.

15

(a)  Application.--A person seeking to manufacture slot

16

machines, table game devices and associated equipment for use in

17

this Commonwealth shall apply to the board for a manufacturer

18

license.

19

(b)  Requirements.--An application for a manufacturer license

20

shall be on the form required by the board, accompanied by the

21

application fee, and shall include all of the following:

22

* * *

23

(5)  The type of slot machines, table game devices or

24

associated equipment to be manufactured or repaired.

25

(c)  Review and approval.--Upon being satisfied that the

26

requirements of subsection (b) have been met, the board may

27

approve the application and grant the applicant a manufacturer

28

license consistent with all of the following:

29

(1)  [The license shall be for a period of one year. Upon

30

expiration, a license may be renewed in accordance with

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1

subsection (d)] The initial license shall be for a period of

2

one year and if renewed under subsection (d), the license

3

shall be for a period of three years. Nothing in this

4

paragraph shall relieve the licensee of the affirmative duty

5

to notify the board of any changes relating to the status of

6

its license or to any other information contained in

7

application materials on file with the board.

8

(2)  The license shall be nontransferable.

9

(3)  Any other condition established by the board.

10

(c.1)  Abbreviated process.--In the event an applicant for a

11

manufacturer license to manufacture table game devices or

12

associated equipment used in connection with table games is

13

licensed by the board under this section to manufacture slot

14

machines or associated equipment used in connection with slot

15

machines, the board may determine to use an abbreviated process

16

requiring only that information determined by the board to be

17

necessary to consider the issuance of a license to manufacture

18

table game devices or associated equipment used in connection

19

with table games, including financial viability of the

20

applicant. Nothing in this section shall be construed to waive

21

any fees associated with obtaining a license through the normal

22

application process. The board may only use the abbreviated

23

process if all of the following apply:

24

(1)  The manufacturer license was issued by the board

25

within a 36-month period immediately preceding the date the

26

manufacturer licensee files an application to manufacture

27

table game devices or associated equipment.

28

(2)  The person to whom the manufacturer license was

29

issued affirms there has been no material change in

30

circumstances relating to the license.

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1

(3)  The board determines, in its sole discretion, that

2

there has been no material change in circumstances relating

3

to the licensee that necessitates that the abbreviated

4

process not be used.

5

(d)  Renewal.--

6

(1)  [Six] Two months prior to expiration of a

7

manufacturer license, the manufacturer licensee seeking

8

renewal of its license shall submit a renewal application

9

accompanied by the renewal fee to the board.

10

(2)  If the renewal application satisfies the

11

requirements of subsection (b), the board may renew the

12

licensee's manufacturer license.

13

(3)  If the board receives a complete renewal application

14

but fails to act upon the renewal application prior to the

15

expiration of the manufacturer license, the manufacturer

16

license shall continue in effect for an additional six-month

17

period or until acted upon by the board, whichever occurs

18

first.

19

(d.1)  Authority.--The following shall apply to a licensed

20

manufacturer:

21

(1)  A [licensed] manufacturer or its designee, as

22

licensed by the board, may supply or repair any slot machine,

23

table game device or associated equipment manufactured by the

24

[licensed] manufacturer, provided the manufacturer holds the

25

appropriate manufacturer license.

26

(2)  A manufacturer of slot machines may contract with a

27

supplier under section 1317 (relating to supplier licenses)

28

to provide slot machines or associated equipment to a slot

29

machine licensee within this Commonwealth, provided the

30

supplier is licensed to supply slot machines or associated

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1

equipment used in connection with slot machines.

2

(3)  A manufacturer may contract with a supplier under

3

section 1317 to provide table game devices or associated

4

equipment to a certificate holder, provided the supplier is

5

licensed to supply table game devices or associated equipment

6

used in connection with table games.

7

(e)  Prohibitions.--

8

(1)  No person may manufacture slot machines, table game

9

devices or associated equipment for use within this

10

Commonwealth by a slot machine licensee unless the person has

11

been issued [a] the appropriate manufacturer license under

12

this section.

13

(2)  [No] Except as permitted in section 1323.1A

14

(relating to training equipment), no slot machine licensee

15

may use slot machines, table game devices or associated

16

equipment unless the slot machines, table game devices or

17

associated equipment were manufactured by a person that has

18

been issued [a] the appropriate manufacturer license under

19

this section.

20

(3)  No person issued a license under this section shall

21

apply for or be issued a license under section 1317.

22

(4)  No limitation shall be placed on the number of

23

manufacturer licenses issued or the time period to submit

24

applications for licensure, except as required to comply with

25

section 1306 (relating to order of initial license issuance).

26

Section 10.6.  Title 4 is amended by adding a section to

27

read:

28

§ 1317.2.  Gaming service provider.

29

(a)  Development of classification system.--The board shall

30

develop a classification system governing the certification,

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1

registration and regulation of gaming service providers and

2

individuals and entities associated with them. The

3

classification system shall be based upon the following:

4

(1)  The monetary value or amount of business conducted

5

or expected to be conducted by the gaming service provider

6

with an applicant for a slot machine licensee or a slot

7

machine licensee in any consecutive 12-month period.

8

(2)  Whether the employees of the gaming service provider

9

will have access to the gaming floor or any gaming-related

10

restricted area of a licensed facility.

11

(3)  The board's analysis of the goods or services

12

provided or to be provided by the gaming service provider.

13

(b)  Authority to exempt.--The board may exempt any person or

14

type of business from the requirements of this section if the

15

board determines:

16

(1)  the person or type of business is regulated by an

17

agency of the Federal Government, an agency of the

18

Commonwealth or the Pennsylvania Supreme Court; or

19

(2)  the regulation of the person or type of business is

20

determined not to be necessary in order to protect the public

21

interest or the integrity of gaming.

22

(c)  Duties of gaming service providers.--Each gaming service

23

provider shall have a continuing duty to:

24

(1)  Provide all information, documentation and

25

assurances as the board may require.

26

(2)  Cooperate with the board in investigations, hearings

27

and enforcement and disciplinary actions.

28

(3)  Comply with all conditions, restrictions,

29

requirements, orders and rulings of the board in accordance

30

with this part.

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1

(4)  Report any change in circumstances that may render

2

the gaming service provider ineligible, unqualified or

3

unsuitable for continued registration or certification.

4

(d)  Requirement for permit.--The board may require employees

5

of a gaming service provider to obtain a permit or other

6

authorization if, after an analysis of duties, responsibilities

7

and functions, the board determines that a permit or other

8

authorization is necessary to protect the integrity of gaming.

9

(e)  Interim authorization.--The board or a designated

10

employee of the board may permit a gaming service provider

11

applicant to engage in business with an applicant for a slot

12

machine license or a slot machine licensee prior to approval of

13

the gaming service provider application if the following

14

criteria have been satisfied:

15

(1)  A completed application has been filed with the

16

board by the gaming service provider.

17

(2)  The slot machine applicant or slot machine licensee

18

contracting or doing business with the gaming service

19

provider certifies that it has performed due diligence on the

20

gaming service provider and believes that the applicant meets

21

the qualification to be a gaming service provider pursuant to

22

this section.

23

(3)  The gaming service provider applicant agrees in

24

writing that the grant of interim authorization to conduct

25

business prior to board approval of its application does not

26

create a right to continue to engage in business if the board

27

determines that the applicant is not suitable or continued

28

authorization is not in the public interest.

29

(f)  Construction.--Nothing in this section shall be

30

construed to prohibit the board from rescinding a grant of

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1

interim authorization if, at any time, the suitability of the

2

person subject to interim authorization is at issue or if the

3

person fails to cooperate with the board, the bureau or an agent

4

of the board or bureau.

5

(g)  Gaming service provider lists.--The board shall:

6

(1)  Develop and maintain a list of approved gaming

7

service providers who are authorized to provide goods or

8

services whether under a grant of interim or continued

9

authorization.

10

(2)  Develop and maintain a list of prohibited gaming

11

service providers. An applicant for a slot machine license or

12

a slot machine licensee may not enter into an agreement or

13

engage in business with a gaming service provider listed on

14

the prohibited gaming service provider list.

15

(h)  Emergency authorization.--A slot machine licensee may

16

utilize a gaming service provider that has not been approved by

17

the board when a threat to public health, welfare or safety

18

exists or circumstances outside the control of the slot machine

19

licensee require immediate action to mitigate damage or loss to

20

the licensee's licensed facility or to the Commonwealth. The

21

board shall promulgate regulations to govern the use of gaming

22

service providers under emergency circumstances. The regulations

23

shall include a requirement that the slot machine licensee

24

contact the board immediately upon utilizing a gaming service

25

provider that has not been approved by the board.

26

(i)  Criminal history record information.--If the

27

classification system developed by the board in accordance with

28

subsection (a) requires a gaming service provider or an

29

individual or entity associated with the gaming service provider

30

to submit to or provide the bureau with criminal history record

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1

information under 18 Pa.C.S. Ch. 91 (relating to criminal

2

history record information), the bureau shall notify a slot

3

machine licensee that submitted a certification under subsection

4

(e)(2) whether the applicant has been convicted of a felony or

5

misdemeanor gambling offense.

6

Section 10.7.  Sections 1318(c) and 1319 of Title 4 are

7

amended to read:

8

§ 1318.  Occupation permit application.

9

* * *

10

(c)  Prohibition.--No slot machine licensee may employ or

11

permit any person under 18 years of age to render any service

12

whatsoever in any area of its licensed facility [at which] where 

13

slot machines or table games are physically located.

14

§ 1319.  Alternative manufacturer licensing standards.

15

(a)  General rule.--The board may determine whether the

16

licensing standards of another jurisdiction within the United

17

States in which an applicant for a manufacturer license is

18

similarly licensed are comprehensive and thorough and provide

19

similar adequate safeguards as those required by this part. If

20

the board makes that determination, it may issue a manufacturer

21

license to an applicant who holds a similar manufacturer license

22

in such other jurisdiction after conducting an evaluation of the

23

information relating to the applicant from such other

24

jurisdictions, as updated by the board, and evaluating other

25

information related to the applicant received from that

26

jurisdiction and other jurisdictions where the applicant may be

27

licensed, the board may incorporate such information in whole or

28

in part into its evaluation of the applicant.

29

(b)  Abbreviated process.--In the event an applicant for a

30

[slot machine] manufacturer license is licensed in another

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1

jurisdiction, the board may determine to use an [alternate]

2

abbreviated process requiring only that information determined

3

by the board to be necessary to consider the issuance of a

4

license, including financial viability of the [licensee, to such

5

an] applicant. Nothing in this section shall be construed to

6

waive any fees associated with obtaining a license through the

7

normal application process.

8

Section 10.8.  Title 4 is amended by adding a section to

9

read:

10

§ 1319.1.  Alternative supplier 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 supplier's license is

14

similarly licensed are comprehensive and thorough and provide

15

similar adequate safeguards as required by this part. If the

16

board makes that determination, it may issue a supplier license

17

to an applicant who holds a similar supplier license in another

18

jurisdiction after conducting an evaluation of the information

19

relating to the applicant from the other jurisdictions, as

20

updated by the board, and evaluating other information related

21

to the applicant received from that jurisdiction and other

22

jurisdictions where the applicant may be licensed, the board may

23

incorporate the information in whole or in part into its

24

evaluation of the applicant.

25

(b)  Abbreviated process.--In the event an applicant for a

26

supplier license is licensed in another jurisdiction, the board

27

may determine to use an abbreviated process requiring only that

28

information determined by the board to be necessary to consider

29

the issuance of a license, including financial viability of the

30

applicant. Nothing in this section shall be construed to waive

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1

any fees associated with obtaining a license through the normal

2

application process.

3

Section 10.9.  Sections 1321, 1326(a), 1328(a)(1) and (b) and

4

1329 of Title 4 are amended to read:

5

§ 1321.  Additional licenses and permits and approval of

6

agreements.

7

(a)  Requirements.--In addition to the requirements for a

8

license or permit specifically set forth in this part, the board

9

may require a license [or], permit or other authorization, and

10

set a fee for the same, for any key employee or gaming employee

11

or any person who satisfies any of the following criteria:

12

(1)  The person transacts business within this

13

Commonwealth with a slot machine licensee as a ticket

14

purveyor, tour operator, operator of a bus trip program or

15

operator of any other type of travel program or promotional

16

business related to slot machines or table games. The board

17

may also review, deny, order modification or approve, at its

18

discretion, proposed tours, bus routes and travel programs.

19

(2)  The person is presently not [otherwise] required to

20

be licensed or permitted under this part and provides any

21

goods, property or services, including, but not limited to,

22

management [contracts] services for compensation to a slot

23

machine licensee at the licensed facility.

24

(b)  Agreement.--Any agreement to conduct business within

25

this Commonwealth between a person and a slot machine licensee

26

relating to slot machines, table games, table game devices or

27

associated equipment is subject to the approval of the board in

28

accordance with rules and regulations promulgated by the board.

29

Every agreement shall be in writing and shall include a

30

provision for its termination without liability on the part of

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1

the slot machine licensee upon a finding by the board that the

2

agreement is not approved or that it is terminated. Failure to

3

expressly include this condition in the agreement is not a

4

defense in any action brought under this section relating to the

5

termination of the agreement.

6

§ 1326.  License renewals.

7

(a)  Renewal.--All permits and licenses issued under this

8

part unless otherwise provided shall be subject to renewal [on

9

an annual basis upon the application of the holder of the permit

10

or license submitted to the board at least 60 days prior to the

11

expiration of the permit or license] every three years. Nothing

12

in this subsection shall relieve a licensee of the affirmative

13

duty to notify the board of any changes relating to the status

14

of its license or to any other information contained in the

15

application materials on file with the board. The application

16

for renewal shall be submitted at least 60 days prior to the

17

expiration of the permit or license and shall include an update

18

of the information contained in the initial and any prior

19

renewal applications and the payment of any renewal fee required

20

by this part. Unless otherwise specifically provided in this

21

part, the amount of any renewal fee shall be calculated by the

22

board to reflect the longer renewal period. A permit or license

23

for which a completed renewal application and fee, if required,

24

has been received by the board will continue in effect unless

25

and until the board sends written notification to the holder of

26

the permit or license that the board has denied the renewal of

27

such permit or license.

28

* * *

29

§ 1328.  Change in ownership or control of slot machine

30

licensee.

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1

(a)  Notification and approval.--

2

(1)  A slot machine licensee shall notify the board

3

[prior to or] immediately upon becoming aware of any proposed

4

or contemplated change of ownership of the slot machine

5

licensee by a person or group of persons acting in concert

6

which involves any of the following:

7

(i)  More than 5% of a slot machine licensee's

8

securities or other ownership interests.

9

(ii)  More than 5% of the securities or other

10

ownership interests of a corporation or other form of

11

business entity that owns directly or indirectly at least

12

20% of the voting or other securities or other ownership

13

interests of the licensee.

14

(iii)  The sale other than in the ordinary course of

15

business of a licensee's assets.

16

(iv)  Any other transaction or occurrence deemed by

17

the board to be relevant to license qualifications.

18

(b)  Qualification of purchaser of slot machine licensee;

19

change of control.--The purchaser of the assets, other than in

20

the ordinary course of business, of any slot machine licensee

21

shall independently qualify for a license in accordance with

22

this part and shall pay the license fee as required by section

23

1209 (relating to slot machine license fee). A change in control

24

of any slot machine licensee shall require that the slot machine

25

licensee independently qualify for a license in accordance with

26

this part, and the slot machine licensee shall pay a new license

27

fee as required by section 1209, except as otherwise required by

28

the board pursuant to this section. The new license fee shall be

29

paid upon the assignment and actual change of control or

30

ownership of the slot machine license.

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1

* * *

2

§ 1329.  [Nonportability] Portability and relocation of slot

3

machine license.

4

(a)  General rule.--[Each] Except as otherwise provided in

5

this section, each slot machine license shall only be valid for

6

the specific physical location within the municipality and

7

county for which it was originally granted. [No]

8

(b)  Petition.--An applicant for a slot machine license or a

9

slot machine licensee may petition the board to relocate its

10

facility. In determining whether to grant a petition to

11

relocate, the board shall:

12

(1)  Evaluate the proposed new location and the reason

13

for the relocation.

14

(2)  Conduct an analysis comparing estimated gross

15

terminal revenues and estimated gross table game revenues at

16

the proposed new location with estimated or actual gross

17

terminal revenues and estimated or actual gross table game

18

revenues at the approved current location.

19

(3)  Conduct an analysis comparing the economic impact of

20

the licensed facility at the proposed new location with the

21

estimated or actual economic impact at the approved current

22

location. The comparative analysis shall include the total

23

cost of the project and projected direct and indirect

24

employment figures.

25

(4)  Commission a comprehensive traffic study for the

26

proposed new location.

27

(5)  Evaluate community support or opposition.

28

(6)  Consider any other information submitted by the

29

petitioner or requested by the board.

30

(c)  Relocation.--A slot machine licensee [shall be permitted

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1

to] may move or relocate [the physical location of] the licensed

2

facility [without] with board approval [for] upon good cause

3

shown if the relocation of the licensed facility:

4

(1)  remains within the same county as when it was

5

originally licensed;

6

(2)  will facilitate the timely commencement or the

7

continued conduct of gaming operations;

8

(3)  complies with all other provisions of this part

9

related to the siting and location of a licensed facility;

10

and

11

(4)  is in the best interests of the Commonwealth.

12

(d)  Public input hearing.--The board shall hold at least one

13

public input hearing in the municipality where the licensed

14

facility will be located prior to ruling on the petition.

15

(e)  Restriction.--No grant or loan from the Commonwealth may

16

be awarded for the purpose of relocating or developing the

17

relocated licensed facility to comply with any conditions of

18

approval of the relocation.

19

Section 11.  Title 4 is amended by adding a section to read:

20

§ 1332.  Appointment of trustee.

21

(a)  Appointment.--Upon petition of the Office of Enforcement

22

Counsel, the board may appoint a trustee from the list required

23

under subsection (j) to act on behalf of the interests of the

24

Commonwealth and the board to ensure compliance with this part

25

and any conditions imposed upon the slot machine license. A

26

trustee may be appointed only in the following circumstances:

27

(1)  Upon the revocation, suspension or nonrenewal of a

28

slot machine license or a principal license if the principal

29

licensee is the only principal who exercises operational

30

control of the licensed facility.

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1

(2)  Upon the failure to renew a slot machine license or

2

a principal license if the principal licensee is the only

3

principal who exercises operational control of the licensed

4

facility.

5

(3)  If necessary to protect the best interests of the

6

Commonwealth.

7

(b)  Qualifications.--The following shall apply:

8

(1)  A trustee shall be required to qualify as a

9

principal and obtain a principal license. The board may

10

appoint a trustee and award the trustee a temporary principal

11

license as prescribed in board regulations.

12

(2)  Before assuming duties, a trustee shall execute and

13

file a bond for the faithful performance of the trustee's

14

duties. The bond shall be payable to the board with sureties

15

and in the amount and form as required by board order. The

16

cost of the bond shall be paid by the former or suspended

17

licensee.

18

(3)  A trustee shall be a resident of this Commonwealth.

19

(c)  Powers.--A trustee appointed under this section shall

20

exercise only those powers, duties and responsibilities

21

expressly conferred upon the trustee by the board. The board's

22

order appointing the trustee shall set forth the powers, duties

23

and responsibilities of the trustee which may include:

24

(1)  Maintaining and operating the licensed facility in a

25

manner that complies with this part and any conditions

26

imposed by the board.

27

(2)  Maintaining and operating the licensed facility

28

consistent with the measures generally taken in the ordinary

29

course of business including:

30

(i)  Entering into contracts.

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1

(ii)  Borrowing money.

2

(iii)  Pledging, mortgaging or otherwise encumbering

3

the licensed facility or property thereof as security for

4

the repayment of loans subject to any provisions and

5

restrictions in any existing credit documents.

6

(iv)  Hiring, firing and disciplining employees.

7

(3)  Exercising the rights and obligations of the former

8

or suspended licensee.

9

(4)  Taking possession of all of the assets of the slot

10

machine licensee, including its books, records and papers.

11

(5)  Establishing accounts with financial institutions.

12

An account may not be established with a financial

13

institution in which the licensee, an affiliate of the former

14

or suspended licensee, the trustee, or an immediate family

15

member of the trustee, has a controlling interest.

16

(6)  Meeting with the former or suspended licensee.

17

(7)  Meeting with principals and key employees at the

18

licensed facility.

19

(8)  Meeting with the independent audit committee.

20

(9)  Meeting with the board's executive director and

21

keeping the board's executive director apprised of actions

22

taken and the trustee's plans and goals for the future.

23

(10)  Hiring legal counsel, accountants or other

24

consultants or assistants, with prior approval of the board,

25

as necessary to carry out the trustee's duties and

26

responsibilities.

27

(11)  Settling or compromising with any debtor or

28

creditor of the former or suspended licensee, including any

29

taxing authority.

30

(12)  Reviewing outstanding agreements to which the

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1

former or suspended licensee is a party and advising the

2

board as to which, if any, of the agreements should be the

3

subject of scrutiny, examination or investigation by the

4

board.

5

(13)  Obtaining board approval prior to any sale, change

6

of ownership, change of control, change of financial status,

7

restructuring, transfer of assets or execution of a contract

8

or any other action taken outside of the ordinary course of

9

business.

10

(14)  Obtaining board approval for any payments outside

11

of those made in the ordinary course of business.

12

Notwithstanding any provision contained in this subsection to

13

the contrary, the trustee shall have the duty to conserve and

14

preserve the assets of the licensed gaming entity.

15

(d)  Compensation.--The board shall establish the

16

compensation of a trustee and shall review and approve actual

17

and reasonable costs and expenses of the trustee, legal counsel,

18

accountants or other consultants or assistants hired by the

19

trustee. The compensation, costs and expenses shall be paid by

20

the former or suspended licensee. Total compensation for the

21

trustee and all persons hired or retained by the trustee under

22

subsection (c)(10) shall not exceed $600 per hour in the

23

aggregate unless otherwise increased by the board pursuant to

24

subsection (d.2).

25

(d.1)  Calculation of compensation.--In determining the

26

aggregate hourly rate of compensation to be paid to the trustee

27

and all other persons hired or retained by the trustee, the

28

board shall consider:

29

(1)  The time and labor required, the difficulty of the

30

questions involved and the skill required to properly perform

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1

the required services.

2

(2)  Whether the acceptance of the position by the

3

trustee or other person will preclude the trustee or other

4

person from other employment.

5

(3)  The fee customarily charged for similar services.

6

(4)  The nature and potential length of the duties.

7

(5)  The experience, reputation and ability of the

8

trustee or other person selected to perform the services.

9

(d.2)  Compensation exceptions.--

10

(1)  On January 1 of each year, the board may adjust the

11

aggregate hourly rate of compensation authorized under

12

subsection (d) for inflation. The adjustment shall not exceed

13

the percentage change in the Consumer Price Index for All

14

Urban Consumers for the Pennsylvania, New Jersey, Delaware

15

and Maryland area for the most recent 12-month period for

16

which figures have been officially reported by the United

17

States Department of Labor, Bureau of Labor Statistics. When

18

adjusted, the board shall publish the adjusted aggregate

19

hourly rate of compensation in the Pennsylvania Bulletin.

20

(2)  Upon petition by the Director of the Office of

21

Enforcement Counsel, the board may increase the total hourly

22

rate of compensation above the limitation contained in

23

subsection (d) for good cause shown. The board shall consider

24

the factors under subsection (d.1) when calculating any

25

increase requested by the office.

26

(e)  Reports.--A trustee shall file reports relating to the

27

administration of the trusteeship with the board in the form and

28

at intervals as the board orders. The board may direct that

29

copies or portions of the trustee's reports be mailed to

30

creditors or other parties in interest and make summaries of the

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1

reports available to the public and shall post them on the

2

board's Internet website.

3

(f)  Review of actions.--A creditor or other party in

4

interest aggrieved by any alleged breach of a delegated power or

5

duty or responsibility of a trustee in the discharge of the

6

trustee's duties may request a review of the trustee's action or

7

inaction by filing a petition in accordance with board

8

regulations. The petition must set forth in detail the pertinent

9

facts and the reasons why the facts constitute the alleged

10

breach. The board shall review any petition filed under this

11

section and take whatever action, if any, it deems appropriate.

12

(g)  Effect of the trusteeship.--After issuance of an order

13

to appoint a trustee, the former or suspended principal or slot

14

machine licensee may not exercise any of its privileges, collect

15

or receive any debts or pay out, sell, assign or transfer any of

16

its assets to anyone without prior approval of the appointed

17

trustee and the board.

18

(h)  Disposition of net income.--During the period of

19

trusteeship, net income from the licensed facility shall be

20

deposited in an escrow account maintained for that purpose.

21

Payments from the escrow account during the period of

22

trusteeship may not be made without the prior approval of the

23

board. A suspended or former principal or slot machine licensee

24

may request distribution of all or a portion of the funds in the

25

escrow account during the period of trusteeship by filing a

26

petition in accordance with board regulation. The suspended or

27

former principal or slot machine licensee shall have the burden

28

of demonstrating good cause for the distribution of the funds

29

requested.

30

(i)  Discontinuation.--The board may issue an order to

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1

discontinue a trusteeship when:

2

(1)  the board determines that circumstances requiring

3

the appointment of the trustee no longer exist; or

4

(2)  the trustee has, with the prior approval of the

5

board, consummated the sale, assignment, conveyance or other

6

disposition of all the assets or interest of the former

7

principal or slot machine licensee relating to the slot

8

machine license.

9

(j)  List of approved trustees.--The board shall promulgate

10

regulations governing establishment of a list of persons

11

approved by the board and qualified to serve as a trustee. At a

12

minimum, the regulations shall provide for the following:

13

(1)  The minimum qualifications a person must possess to

14

be approved as a trustee, which shall include the

15

qualifications set forth in subsection (b).

16

(2)  The procedure for placement on or removal from the

17

approved trustee list.

18

(3)  Any other information the board deems necessary to

19

carry out the intent of this section.

20

Section 11.1.  Title 4 is amended by adding a chapter to

21

read:

22

CHAPTER 13A

23

TABLE GAMES

24

Subchapter

25

A.  General Provisions

26

B.  Table Games Authorized

27

C.  Conduct of Table Games

28

D.  (Reserved)

29

E.  Table Game Testing and Certification

30

F.  (Reserved)

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1

G.  Table Game Taxes and Fees

2

SUBCHAPTER A

3

GENERAL PROVISIONS

4

Sec.

5

1301A.  (Reserved).

6

1302A.  Regulatory authority.

7

1303A.  Temporary table game regulations.

8

1304A.  Commonwealth resident employment goals.

9

§ 1301A.  (Reserved).

10

§ 1302A.  Regulatory authority.

11

The board shall promulgate regulations:

12

(1)  Establishing standards and procedures for table

13

games and table game devices or associated equipment,

14

including standards distinguishing electronic gaming tables,

15

fully automated electronic gaming tables and traditional

16

gaming tables. The standards and procedures shall provide for

17

any new table games or gaming tables and variations or

18

composites of approved table games or gaming tables, provided

19

the board determines that the new table game, gaming table or

20

any variations or composites or other approved table games or

21

gaming tables are suitable for use after a test or

22

experimental period under the terms and conditions as the

23

board may deem appropriate.

24

(2)  Establishing standards and rules to govern the

25

conduct of table games and the system of wagering associated

26

with table games, including the conduct of table games and

27

the system of wagering on electronic gaming tables and fully

28

automated electronic gaming tables.

29

(2.1)  Establishing the method for calculating gross

30

table game revenue and standards for the daily counting and

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1

recording of cash and cash equivalents received in the

2

conduct of table games, including the conduct of table games

3

on electronic gaming tables and fully automated electronic

4

gaming tables, and ensuring that internal controls are

5

followed, including observation by employees of the board of

6

that process, the maintenance of financial books and records

7

and the conduct of audits.

8

(3)  Establishing notice requirements pertaining to

9

minimum and maximum wagers on table games. Minimum and

10

maximum wagers may be adjusted by the certificate holder in

11

the normal course of conducting table games, except that

12

changes in minimum wagers at any given gaming table shall not

13

apply to players already engaged in wagering at that gaming

14

table when the minimum wager is changed, unless 30 minutes

15

notice is provided at that gaming table.

16

(4)  Requiring each certificate holder to:

17

(i)  Provide written information at each operational

18

gaming table about table game rules, payoffs or winning

19

wagers and other information as the board may require.

20

(ii)  Provide specifications approved by the board

21

under section 1207(11) (relating to regulatory authority

22

of board) to integrate and update the licensed facility's

23

surveillance system to cover all areas where table games

24

are conducted. The specifications shall include

25

provisions providing the board and other persons

26

authorized by the board with onsite access to the system

27

or its signal.

28

(iii)  Designate one or more locations within the

29

licensed facility to conduct table games.

30

(iv)  Ensure that visibility in a licensed facility

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1

is not obstructed in any way that could interfere with

2

the ability of the certificate holder, the board and

3

other persons authorized under this part or by the board

4

to oversee the surveillance of the conduct of table

5

games.

6

(v)  Integrate the licensed facility's count room for

7

slot machine and table game operations to ensure maximum

8

security of the counting and storage of cash and cash

9

equivalents.

10

(vi)  Equip each operational gaming table with a sign

11

indicating the permissible minimum and maximum wagers at

12

the gaming table.

13

(vii)  Adopt policies or procedures to prohibit any

14

table game device or associated equipment from being

15

possessed, maintained or exhibited by any person on the

16

premises of a licensed facility except in the areas of a

17

licensed facility where the conduct of table games is

18

authorized or in a restricted area designated to be used

19

for the inspection, service, repair or storage of table

20

game devices or associated equipment by the certificate

21

holder or in an area used for employee training and

22

instruction by the certificate holder.

23

(viii)  Equip all drop boxes in which cash, cash

24

equivalents, fill slips, credit slips or inventory slips

25

are deposited at the gaming tables, and all areas where

26

drop boxes are kept while in use, with two locking

27

devices or keys, of which one locking device or key shall

28

be under the exclusive control of the board, and the

29

second locking device or key shall be under the exclusive

30

control of the certificate holder's designated employees.

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1

The drop boxes shall be brought into or removed from an

2

area where table games are conducted or locked or

3

unlocked in accordance with procedures established by the

4

board.

5

(ix)  Designate secure locations for the inspection

6

and storage of table game devices and associated

7

equipment as may be approved by the board.

8

(5)  Establishing the size and uniform color by

9

denomination of all chips used in the conduct of table games,

10

including contests and tournaments, and a policy for the use

11

of promotional or commemorative chips used in the conduct of

12

table games. All types of chips shall be approved by the

13

board prior to being used for play at a table game at a

14

licensed facility.

15

(5.1)  Establishing the procedure to be used by a

16

certificate holder to determine and extract a rake for the

17

purposes of generating gross table game revenue from

18

nonbanking games. The rake may be calculated as a percentage

19

or a flat fee.

20

(6)  Establishing minimum standards relating to the

21

acceptance of tips or gratuities by dealers and croupiers at

22

a table game, which shall include:

23

(i)  The requirement that tips or gratuities accepted

24

by dealers and croupiers at banking games be placed in a

25

common pool for complete distribution pro rata among all

26

dealers and croupiers.

27

(ii)  The right of the certificate holder to

28

establish policies under which tips or gratuities

29

accepted by dealers and croupiers at nonbanking games are

30

not required to be pooled and may be retained by the

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1

dealers and croupiers.

2

Nothing in this paragraph shall prohibit a certificate holder

3

from adopting a formal policy relating to acceptance of tips

4

and gratuities, provided that the policy meets the minimum

5

standards established by the board under this paragraph.

6

(7)  Establishing the minimal proficiency requirements

7

for individuals to successfully complete a course of training

8

at a gaming school. The regulations shall not prohibit a slot

9

machine licensee from establishing a course of training for

10

its employees or potential employees or prohibit a

11

certificate holder from offering employment to an individual

12

who has not attended or completed a course of instruction at

13

a gaming school and shall require a slot machine licensee

14

that elects to train its gaming employees or potential table

15

game employees to submit a detailed summary of the training

16

program to the board and to demonstrate the adequacy of the

17

training. The regulations shall prohibit a slot machine

18

licensee from charging its employees or potential employees a

19

fee to complete a course of training.

20

(8)  Permitting certificate holders to request

21

authorization to conduct, and to conduct, tournaments and

22

establishing the practices and procedures governing the

23

conduct of the tournaments. The number of gaming tables used

24

during a contest or tournament shall not be counted toward

25

the maximum number of gaming tables authorized by the

26

certificate holder's table game operation certificate.

27

§ 1303A.  Temporary table game regulations.

28

(a)  Promulgation.--In order to facilitate the prompt

29

implementation of this chapter, regulations promulgated by the

30

board shall be deemed temporary regulations which shall expire

- 334 -

 


1

not later than two years following the publication of the

2

temporary regulation. The board may promulgate temporary

3

regulations not subject to:

4

(1)  Sections 201, 202, 203, 204 and 205 of the act of

5

July 31, 1968 (P.L.769, No.240), referred to as the

6

Commonwealth Documents Law.

7

(2)  The act of June 25, 1982 (P.L.633, No.181), known as

8

the Regulatory Review Act.

9

(3)  Sections 204(b) and 301(10) of the act of October

10

15, 1980 (P.L.950, No.164), known as the Commonwealth

11

Attorneys Act.

12

(b)  Expiration.--Except for temporary regulations governing

13

the rules of new table games approved by the board, the board's

14

authority to adopt temporary regulations under subsection (a)

15

shall expire two years after the effective date of this section.

16

Regulations adopted after this period shall be promulgated as

17

provided by law.

18

(c)  Temporary regulations.--The board shall begin publishing

19

temporary regulations governing table game rules, licensing of

20

manufacturers and suppliers and surveillance standards in the

21

Pennsylvania Bulletin no later than February 1, 2010.

22

§ 1304A.  Commonwealth resident employment goals.

23

(a)  Employment opportunities.--It is the goal of the General

24

Assembly that the board promote and ensure the availability of

25

employment opportunities for Commonwealth residents in table

26

games and table game-related operations as authorized in this

27

chapter. The board shall work with each certificate holder to

28

ensure that a significant number of Commonwealth residents are

29

employed by a certificate holder relating to table games. It is

30

also the goal of the General Assembly that Commonwealth

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1

residents comprise at least 85% of each certificate holder's

2

table game-related employees by the end of the third year

3

following commencement of the conduct of table games at each

4

certificate holder's licensed facility.

5

(b)  Review.--The board shall conduct an annual review to

6

ascertain each certificate holder's progress in achieving the

7

goals of this section and whether each certificate holder has

8

taken effective and meaningful action to employ Commonwealth

9

residents in table game-related positions at licensed

10

facilities. The first review shall be completed one year

11

following the award of the first table game operation

12

certificate. Each annual review shall contain recommendations

13

which the board determines appropriate and may be combined with

14

any other review or study required by the board under this part.

15

The review shall be submitted to the chairman and minority

16

chairman of the standing committees of the Senate and of the

17

House of Representatives with jurisdiction over this part.

18

SUBCHAPTER B

19

TABLE GAMES AUTHORIZED

20

Sec.

21

1311A.  Authorization to conduct table games.

22

1312A.  Petition requirements.

23

1313A.  Prohibitions.

24

1314A.  Table game authorization hearing process; public input

25

hearings.

26

1315A.  Standard for review of petitions.

27

1316A.  Award of certificate.

28

1316.1A.  Amendment of statement of conditions.

29

1317A.    Table game operation certificate.

30

1318A.    Timing of initial table game authorizations.

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1

§ 1311A.  Authorization to conduct table games.

2

(a)  Authorization.--The board may authorize a slot machine

3

licensee to conduct table games, including table game contests

4

and tournaments, and to operate a system of wagering associated

5

with the conduct of table games at the slot machine licensee's

6

licensed facility. Authorization shall be contingent upon the

7

slot machine licensee's agreement to ensure that slot machine

8

and table game operations will be conducted in accordance with

9

this part and any other conditions established by the board.

10

Nothing in this part shall be construed to create a separate

11

license governing the conduct of table games by licensed

12

entities within this Commonwealth.

13

(b)  Number of authorized gaming tables.--

14

(1)  A Category 1 and Category 2 slot machine licensee

15

awarded a table game operation certificate may operate up to

16

250 gaming tables at any one time at its licensed facility.

17

No more than 75 of these gaming tables may be used to play

18

nonbanking games at any one time.

19

(2)  A Category 3 slot machine licensee awarded a table

20

game operation certificate may operate up to 50 gaming tables

21

at any one time at its licensed facility. No more than 15 of

22

these gaming tables may be used to play nonbanking games at

23

any one time.

24

(c)  Additional authorization.--Notwithstanding subsection

25

(b), the board and, if authorized by the board under section

26

1321A (relating to authorized locations for operation), the

27

executive director may authorize the certificate holder to

28

exceed the total number of gaming tables authorized in

29

subsection (b) and its table game operation certificate for the

30

purpose of conducting contests or tournaments in accordance with

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1

section 1321A.

2

§ 1312A.  Petition requirements.

3

(a)  General rule.--Unless otherwise prohibited under section

4

1313A (relating to prohibitions), a slot machine licensee may

5

seek approval to conduct table games by filing a petition with

6

the board.

7

(b)  Petition contents.--A petition seeking authorization to

8

conduct table games shall include the following:

9

(1)  The name, business address and contact information

10

of the petitioner.

11

(2)  The name and business address, job title and a

12

photograph of each principal and key employee of the

13

petitioner who will be involved in the conduct of table games

14

and who is not currently licensed by the board, if known.

15

(3)  An itemized list of the number of gaming tables and

16

types of table games for which authorization is being sought.

17

(4)  The estimated number of full-time and part-time

18

employment positions that will be created at the licensed

19

facility if table games are authorized and an updated hiring

20

plan pursuant to section 1510(a) (relating to labor hiring

21

preferences) which outlines the petitioner's plan to promote

22

the representation of diverse groups and Commonwealth

23

residents in the employment positions.

24

(5)  A brief description of the economic benefits

25

expected to be realized by the Commonwealth, its

26

municipalities and its residents if table games are

27

authorized at the petitioner's licensed facility.

28

(6)  The details of any financing obtained or that will

29

be obtained to fund an expansion or modification of the

30

licensed facility to accommodate table games and to otherwise

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1

fund the cost of commencing table game operations.

2

(7)  Information and documentation concerning financial

3

background and resources, as the board may require, to

4

establish by clear and convincing evidence the financial

5

stability, integrity and responsibility of the petitioner.

6

(8)  Information and documentation, as the board may

7

require, to establish by clear and convincing evidence that

8

the petitioner has sufficient business ability and experience

9

to create and maintain a successful table game operation. In

10

making this determination, the board may consider the results

11

of the petitioner's slot machine operation, including

12

financial information, employment data and capital

13

investment.

14

(9)  Information and documentation, as the board may

15

require, to establish by clear and convincing evidence that

16

the petitioner has or will have the financial ability to pay

17

the authorization fee under section 1361A (relating to table

18

game authorization fee).

19

(10)  Detailed site plans identifying the petitioner's

20

proposed table game area within the licensed facility.

21

(11)  If the petitioner is a Category 1 or Category 2

22

slot machine licensee, a waiver, on a form prescribed by the

23

board which is signed by the petitioner and acknowledged by

24

each of the petitioner's principals, of the following rights

25

arising as a result of an amendment or addition to this part

26

that took effect at the same time as the effective date of

27

this section:

28

(i)  the petitioner's right under section 1209(f)

29

(relating to slot machine license fee) or under any

30

contract executed by the applicant and the department

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1

under section 1209(c) to receive the return of any

2

portion of the slot machine license fee paid by the

3

petitioner for its slot machine license; and

4

(ii)  the petitioner's right, if any, to sue for the

5

return of any portion of the slot machine license fee

6

paid by the petitioner for its slot machine license.

7

(12)  Other information as the board may require.

8

(c)  Confidentiality.--Information submitted to the board

9

under subsection (b)(6), (7), (9), (10) and (12) may be

10

considered confidential by the board if the information would be

11

confidential under section 1206(f) (relating to board minutes

12

and records).

13

§ 1313A.  Prohibitions.

14

(a)  Slot machine licensee.--No slot machine licensee that is

15

required as a condition of slot machine licensure to make

16

payments to a municipality, municipal authority or other entity

17

for an economic development project, including any project

18

enumerated in the act of July 25, 2007 (P.L.342, No.53), known

19

as Pennsylvania Gaming Economic Development and Tourism Fund

20

Capital Budget Itemization Act of 2007, may submit a petition

21

under section 1312A (relating to petition requirements) until

22

the requirements of section 1214(a) (relating to specific

23

authority to suspend slot machine license) are met.

24

(b)  Duties of board.--The board shall not accept or approve

25

a petition submitted by any slot machine licensee subject to

26

subsection (a) until the written agreement required by section

27

1214(a) is submitted by the slot machine licensee to the board,

28

which shall ensure the written agreement meets the requirements

29

of section 1214(a) and all conditions relating to the economic

30

development project imposed by the board when awarding the slot

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1

machine license to the licensee are satisfied.

2

(c)  Construction.--Nothing in this section shall be

3

construed to relieve a slot machine licensee of its legal

4

obligation to make any required payments referenced under this

5

section if the slot machine licensee elects not to petition the

6

board for authorization to conduct table games.

7

§ 1314A.  Table game authorization hearing process; public input

8

hearings.

9

(a)  General rule.--The board's consideration and resolution

10

of all petitions to conduct table games shall be conducted in

11

accordance with 2 Pa.C.S. (relating to administrative law and

12

procedure) or with procedures adopted by order of the board.

13

Notwithstanding the requirements of 2 Pa.C.S. §§ 504 (relating

14

to hearing and record) and 505 (relating to evidence and cross-

15

examination) as they relate to the conduct of oral hearings, the

16

board may adopt procedures to provide parties before it with a

17

documentary hearing, and the board may resolve disputed material

18

facts without conducting an oral hearing where constitutionally

19

permissible.

20

(b)  Public input hearing requirement.--

21

(1)  Prior to granting a petition for a slot machine

22

licensee to conduct table games under this chapter, the board

23

shall hold at least one public input hearing on the matter in

24

the municipality where the petitioner's licensed facility is

25

located.

26

(2)  A list of all witnesses scheduled to testify at a

27

public input hearing shall be posted on the board's Internet

28

website at least seven days prior to the hearing. The list

29

shall be updated at least three days prior to the hearing.

30

Additional witnesses shall be posted on the board's Internet

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1

website as they are added to the list.

2

§ 1315A.  Standard for review of petitions.

3

The board shall approve a petition if the petitioner

4

establishes, by clear and convincing evidence, all of the

5

following:

6

(1)  The petitioner's slot machine license is in good

7

standing with the board.

8

(2)  The conduct of table games at the petitioner's

9

licensed facility will have a positive economic impact on the

10

Commonwealth, its municipalities and residents through

11

increased revenues and employment opportunities.

12

(3)  The petitioner possesses adequate funds or has

13

secured adequate financing to:

14

(i)  Fund any necessary expansion or modification of

15

the petitioner's licensed facility to accommodate the

16

conduct of table games.

17

(ii)  Pay the authorization fee in accordance with

18

section 1361A (relating to table game authorization fee).

19

(iii)  Commence table game operations at its licensed

20

facility.

21

(4)  The petitioner has the financial stability,

22

integrity and responsibility to conduct table games.

23

(5)  The petitioner has sufficient business ability and

24

experience to create and maintain a successful table game

25

operation.

26

(6)  The petitioner's proposed internal and external

27

security and proposed surveillance measures within the area

28

of the licensed facility where the petitioner seeks to

29

conduct table games are adequate.

30

(7)  The petitioner agrees that the number of slot

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1

machines in operation at its licensed facility on October 1,

2

2009, will not be permanently reduced in order to install

3

gaming tables.

4

(8)  The petitioner has executed the waiver required

5

under section 1312A(b)(11) (relating to petition

6

requirements) and provided any other information required by

7

section 1312A(b).

8

§ 1316A.  Award of certificate.

9

Upon approval of a petition, the board shall award a table

10

games operation certificate to the petitioner. Awarding of a

11

table game operation certificate prior to the payment in full of

12

the authorization fee required by section 1361A (relating to

13

table game authorization fee) shall not relieve the petitioner

14

from complying with the provisions of section 1361A.

15

§ 1316.1A.  Amendment of statement of conditions.

16

(a)  Amendment.--Upon awarding a table game operation 

17

certificate, the board shall amend the slot machine licensee's

18

statement of conditions governing the slot machine license to

19

include conditions pertaining to the requirements of this part.

20

If the slot machine licensee is a Category 1 or Category 2 slot

21

machine licensee, amendments to the statement of conditions

22

shall include a requirement that the slot machine licensee

23

acknowledge and honor the waiver of rights required to be filed

24

under section 1312A(b)(11) (relating to petition requirements).

25

(b)  Sanctions.--A certificate holder that fails to abide by

26

this part or any condition contained in the licensee's statement

27

of conditions in the conduct of table games shall be subject to

28

board-imposed administrative sanctions or other penalties

29

authorized under this part.

30

§ 1317A.  Table game operation certificate.

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1

The following shall apply:

2

(1)  A table game operation certificate shall be in

3

effect unless:

4

(i)  Suspended or revoked by the board consistent

5

with the requirements of this part.

6

(ii)  The slot machine license held by the

7

certificate holder is suspended, revoked or not renewed

8

by the board consistent with the requirements of this

9

part.

10

(iii)  The certificate holder relinquishes or does

11

not seek renewal of its slot machine license.

12

(2)  The table game operation certificate shall include

13

an itemized list by type of table game and the number of

14

gaming tables approved by the board and permitted in the

15

certificate holder's licensed facility. The certificate

16

holder may increase or decrease the number of gaming tables

17

permitted at the licensed facility, change the type of table

18

games played at a particular gaming table or change the

19

configuration of gaming tables upon notice to the board and

20

approval by a designated employee of the board. Unless

21

approved by the board, the total number of gaming tables in

22

operation at the licensed facility may not exceed the number

23

authorized in the table games operation certificate.

24

(3)  A certificate holder shall be required to update the

25

information in its initial table games petition at times

26

prescribed by the board.

27

§ 1318A.  Timing of initial table game authorizations.

28

The board shall approve or deny a petition within 60 days

29

following receipt of the petition.

30

SUBCHAPTER C

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1

CONDUCT OF TABLE GAMES

2

Sec.

3

1321A.  Authorized locations for operation.

4

1322A.  Commencement of table game operations.

5

1323A.  Training of employees and potential employees.

6

1323.1A.  Training equipment.

7

1324A.  Condition of continued operation.

8

1325A.  Table game accounting controls and audit protocols.

9

1326A.  Cash equivalents.

10

1327A.  Other financial transactions.

11

1328A.  Key employees and occupation permits.

12

1329A.  Application of Clean Indoor Air Act.

13

1329.1A.  Application of Liquor Code.

14

§ 1321A.  Authorized locations for operation.

15

(a)  Restriction.--A certificate holder shall only be

16

permitted to operate table games at the licensed facility, a

17

temporary facility authorized under subsection (a.1) or an area

18

authorized under subsection (b).

19

(a.1)  Temporary facilities.--The board may permit a

20

certificate holder to conduct table games at a temporary

21

facility which is physically connected to, attached to or

22

adjacent to a licensed facility for a period not to exceed 24

23

months.

24

(b)  Powers and duties of board.--Upon request made by a

25

certificate holder, the board may determine the suitability of a

26

hotel for the conduct of table games. The board may authorize

27

the executive director to designate specific areas of a licensed

28

facility, other than the gaming floor, or specific areas of a

29

hotel, including conference rooms, ballrooms or other rooms, in

30

which the certificate holder may conduct table game contests or

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1

tournaments. No certificate holder may be approved to conduct

2

table games in a licensed facility or a hotel unless the areas

3

to be designated are equipped with adequate security and

4

surveillance equipment to ensure the integrity of the conduct of

5

a table game contest or tournament. The certificate holder shall

6

notify the board of the number of gaming tables that the

7

certificate holder intends to operate during a contest or

8

tournament, and the board shall designate an employee of the

9

board to approve or deny the request. An authorization granted

10

under this section may not:

11

(1)  Impose any criteria or requirements regarding the

12

contents or structure of a hotel which are unrelated to the

13

conduct of table games.

14

(2)  Authorize the placement or operation of slot

15

machines in a hotel.

16

(3)  Count the number of gaming tables to be utilized in

17

a contest or tournament toward the number of approved gaming

18

tables in the table game operation certificate.

19

§ 1322A.  Commencement of table game operations.

20

A certificate holder may not operate or offer table games for

21

play at a licensed facility until the board determines that:

22

(1)  The certificate holder is in compliance with the

23

requirements of this part.

24

(2)  The certificate holder's internal controls and audit

25

protocols are sufficient to meet the requirements of section

26

1325A (relating to table game accounting controls and audit

27

protocols).

28

(3)  The certificate holder's table game employees, where

29

applicable, are licensed, permitted or otherwise authorized

30

by the board to perform their respective duties.

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1

(4)  The certificate holder is prepared in all respects

2

to offer table game play to the public at the licensed

3

facility.

4

(5)  The certificate holder has implemented necessary

5

internal and management controls and security arrangements

6

and surveillance systems for the conduct of table games.

7

(6)  The certificate holder is in compliance with or has

8

complied with section 1361A (relating to table game

9

authorization fee).

10

§ 1323A.  Training of employees and potential employees.

11

(a)  Adequacy.--A slot machine licensee that elects to offer

12

table game training to its employees or potential employees

13

shall submit to the board a detailed summary of the training

14

program demonstrating the adequacy of the training.

15

(b)    Authorization.--Notwithstanding any provision of this

16

part to the contrary, the executive director of the board may

17

authorize a slot machine licensee to conduct table game training

18

and instruction for the slot machine licensee's employees and

19

potential employees.

20

(c)  Effect.--Authorization granted under subsection (b)

21

shall do all of the following:

22

(1)  Permit a slot machine licensee to conduct training

23

at a location within the licensed facility or at another

24

location.

25

(2)  Require any training authorized on the gaming floor

26

to be conducted in a specified area of the gaming floor that

27

is clearly identified as a training area and not accessible

28

to the public

29

(3)  Designate a secure area at the location where the

30

training will take place for the storage of table game

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1

devices and associated equipment used for training.

2

(4)  Limit the number of table game devices and

3

associated equipment to that necessary to conduct training.

4

(5)  Prohibit the payment of any cash, cash equivalent or

5

other prize to an individual as a result of play conducted

6

during training or play conducted utilizing table game

7

devices or associated equipment obtained under section

8

1323.1A (relating to training equipment).

9

(6)  Prohibit a slot machine licensee from charging its

10

employees or potential employees a fee to participate in the

11

training.

12

(c) Rescission or revocation.—-An authorization granted by

13

the executive director under subsection (b) may be rescinded or

14

revoked by the executive director or the board without cause.

15

The slot machine licensee shall be given notice that the

16

authorization has been rescinded or revoked and afforded a

17

reasonable time to take all necessary actions required by the

18

executive director or the board.

19

(d)  Prohibition.--The board shall be prohibited from

20

charging a fee as a condition of receiving authorization under

21

subsection (b).

22

§ 1323.1 A.  Training equipment.

23

(a)    Acquisition—-Notwithstanding section 1317 (relating to

24

supplier licenses) or section 1317.1 (relating to manufacturer

25

licenses), for a one-year period following the effective date of

26

this section, a slot machine licensee may purchase, lease or

27

otherwise obtain table game devices or associated equipment

28

that will be used for the sole purpose of conducting table game

29

training authorized under section 1323A (relating to initial

30

training of employees and potential employees) from a

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1

manufacturer or supplier, whether or not licensed or otherwise

2

approved by the board under this part, or from an affiliate of

3

the slot machine licensee or a gaming facility in another

4

jurisdiction.

5

(b)    Identification.--Table game devices or associated

6

equipment obtained by a slot machine licensee pursuant to

7

subsection (a) shall have an identification number which shall

8

be kept on file with the board and the table game devices or

9

associated equipment shall be clearly identified as being used

10

for training purposes only.

11

(c)  Prohibition.—-

12

(1)  Table game devices and associated equipment obtained

13

pursuant to this section shall be prohibited from being used

14

on the gaming floor unless being used for training purposes

15

pursuant to section 1323A(c)(2).

16

(2)  The payment of any cash, cash equivalent or other

17

prize to an individual from the play of a table game on table

18

game devices or associated equipment obtained pursuant to

19

this section is prohibited.

20

§ 1324A.  Condition of continued operation.

21

As a condition of continued operation, a certificate holder

22

shall agree to maintain all books, records and documents

23

pertaining to table games in a manner and location within this

24

Commonwealth as approved by the board. All books, records and

25

documents related to table games shall:

26

(1)  be segregated by separate accounts within the slot

27

machine licensee's books, records and documents, except for

28

any books, records or documents that are common to both slot

29

machine and table game operations;

30

(2)  be immediately available for inspection upon request

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1

of the board, the bureau, the department, the Pennsylvania

2

State Police or the Attorney General, or agents thereof,

3

during all hours of operation of the licensed facility in

4

accordance with regulations promulgated by the board; and

5

(3)  be maintained for a period as the board, by

6

regulation, may require.

7

§ 1325A.  Table game accounting controls and audit protocols.

8

(a)  Approval.--Prior to the commencement of table game

9

operations, a certificate holder shall submit to the board for

10

approval all proposed site plans, internal control systems and

11

audit protocols for the certificate holder's table game

12

operations.

13

(b)  Minimum requirements.--A certificate holder's internal

14

controls and audit protocols shall:

15

(1)  Safeguard its assets and revenues, including the

16

recording of cash, cash equivalents and evidences of

17

indebtedness related to table games.

18

(2)  Provide for reliable records, accounts and reports

19

of any financial event that occurs in the conduct of table

20

games, including reports to the board related to table games.

21

(3)  Provide for accurate and reliable financial records

22

related to table games.

23

(4)  Establish procedures for all the following:

24

(i)  The receipt, storage and disbursal of chips,

25

cash and cash equivalents used in table games.

26

(ii)  Conversion of cash equivalents to cash.

27

(iii)  The redemption of chips and other

28

representations of value used in table games and the

29

payment of winnings and prizes.

30

(iv)  The recording of financial transactions

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1

pertaining to table games.

2

(5)  Establish procedures for the collection and security

3

of cash and cash equivalents at the gaming tables.

4

(6)  Establish procedures for the recording of and

5

transfer of chips and cash equivalents between the gaming

6

tables and the cashier's cage.

7

(7)  Establish procedures for the transfer of drop boxes

8

from the gaming tables to the count room.

9

(8)  Establish procedures and security for the counting

10

and recording of gross table game revenue.

11

(9)  Establish procedures for the security, storage and

12

recording of cash and cash equivalents utilized in table

13

games.

14

(10)  Establish procedures and security standards for the

15

handling and storage of table game devices and associated

16

equipment used in connection with table games.

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 and other table games when

22

played as nonbanking games, including the type of rake

23

utilized and the methodology for calculating the amount of

24

permissible rake.

25

(13)  Ensure that any wagering permitted in the play of a

26

table game is implemented only in accordance with the

27

certificate holder's general or specific authorization, as

28

approved by the board.

29

(14)  Ensure the proper and timely accounting of gross

30

table game revenue and the calculation of gross table game

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1

revenue, fees, taxes and assessments based on the gross table

2

game revenue.

3

(15)  Maintain accountability for assets, ensure that

4

recorded accountability for assets is compared with actual

5

assets at reasonable intervals and ensure that appropriate

6

action is taken with respect to any discrepancies.

7

(16)  Ensure that all functions, duties and

8

responsibilities related to table game operations are

9

appropriately segregated and performed in accordance with

10

sound financial practices by qualified employees.

11

(17)  Permit use of its licensed facility by the board,

12

the bureau and other persons authorized under this part or by

13

the board to facilitate their ability to perform regulatory

14

and oversight functions under this chapter.

15

(c)  Submission to board.--The submission required under

16

subsection (a) shall include a detailed description of the

17

certificate holder's administrative and accounting procedures

18

related to table games, including its written system of internal

19

controls. Each written system of internal controls shall

20

include:

21

(1)  An organizational chart depicting appropriate

22

functions and responsibilities of employees involved in both

23

slot machine operations and table game operations.

24

(2)  A description of the duties and responsibilities of

25

each position shown on the organizational chart.

26

(3)  The record retention policy of the certificate

27

holder.

28

(4)  The procedure to be utilized to ensure that assets

29

are safeguarded, including mandatory count procedures.

30

(5)  A detailed narrative description of the

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1

administrative and accounting procedures in place to ensure

2

compliance with the requirements of section 1326A (relating

3

to cash equivalents).

4

(6)  A statement signed by the certificate holder's chief

5

financial officer or other competent person attesting that

6

the signatory believes, in good faith, that the system

7

satisfies the requirements of this section.

8

(d)  Review.--Prior to authorizing a certificate holder to

9

conduct table games, the board shall review the system of

10

internal controls submitted under subsection (c) to determine

11

whether it conforms to the requirements of this part and whether

12

it provides adequate and effective controls for the conduct of

13

table games.

14

§ 1326A.  Cash equivalents.

15

(a)  Checks.--

16

(1)  A certificate holder may accept a check from a

17

patron in exchange for cash or chips. The certificate holder

18

shall present each check for payment to the financial

19

institution upon which the check is drawn within ten days of

20

receipt by the certificate holder. No third party checks

21

shall be permitted.

22

(2)  Notwithstanding any law to the contrary, checks

23

cashed in conformity with the requirements of this section or

24

13 Pa.C.S. Div. 3 (relating to negotiable instruments) shall

25

be valid instruments, enforceable at law in the courts of

26

this Commonwealth. Any check cashed, transferred, conveyed,

27

given or accepted in violation of this section shall be

28

invalid and unenforceable for the purposes of collection by a

29

certificate holder but shall be included in the calculation

30

of gross table game revenue.

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1

(b)  Notice of fees.--All fees charged for the conversion of

2

cash equivalents shall be disclosed.

3

(c)  Payment of cash equivalents.--Other than credit extended

4

by a certificate holder, an instrument that constitutes a cash

5

equivalent shall be made payable to the slot machine licensee,

6

to the bearer or to cash.  An instrument made payable to a third

7

party shall not be considered a cash equivalent and shall be

8

prohibited.

9

§ 1327A.  Other financial transactions.

10

(a)  Credit.--Notwithstanding section 1504 (relating to

11

wagering on credit), a certificate holder may extend credit to

12

patrons for the purpose of playing slot machines or table games

13

in accordance with this section; however, a certificate holder

14

shall not accept credit cards, charge cards or debit cards from

15

a patron or player for the exchange or purchase or chips, slot

16

machine or table game credits or for an advance of coins or

17

currency to be utilized by a player to play slot machine or

18

table games.

19

(b)  Credit applications.-–Each application for credit

20

submitted by a patron to a certificate holder shall be

21

maintained in a confidential credit file. The application shall

22

include the patron's name, address, telephone number and

23

comprehensive bank account information; the requested credit

24

limit; the patron's approximate amount of current indebtedness;

25

the amount and source of income in support of the application;

26

the patron's signature on the application; a certification of

27

truthfulness; and any other information deemed relevant by the

28

certificate holder. The certificate holder shall notify each

29

applicant that, as a condition of receiving credit, the

30

certificate holder will verify identity and indebtedness

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1

information through a credit bureau or casino credit bureau and,

2

if appropriate, through direct contact with other slot machine

3

licensees.

4

(c)  Credit application verification.-–Prior to approving an

5

application for credit, a certificate holder shall verify:

6

(1)  The identity, creditworthiness and indebtedness

7

information of the applicant by conducting a comprehensive

8

review of the information submitted with the application and

9

any information regarding the applicant's credit activity at

10

other licensed facilities which the certificate holder may

11

obtain through a casino credit bureau and, if appropriate,

12

through direct contact with other slot machine licensees.

13

(2)  That the applicant's name is not included on an

14

exclusion list under section 1514 (relating to regulation

15

requiring exclusion of certain persons) or 1516 (relating to

16

list of persons self excluded from gaming activities) or the

17

voluntary credit suspension list under subsection (h).

18

(d)  Establishment of credit.-–Upon completion of the

19

verification required under subsection (c), a certificate holder

20

may grant a patron credit. The certificate holder shall

21

establish a credit limit for each patron to whom the certificate

22

holder grants credit. Each applicant's credit limit shall be

23

approved by two or more employees of the certificate holder

24

holding the job positions of credit manager, assistant credit

25

manager, credit shift manager, credit executive or a key

26

employee in a direct reporting line above the manager or credit

27

manager. The approval shall be recorded in the applicant's

28

credit file and shall include the reasons and information relied

29

on for the approval of credit and verification by the employees

30

approving the applicant's credit limit. Increases to an

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1

individual's credit limit may be approved following a written

2

request from the individual and reverification of an

3

individual's credit information.

4

(e)  Recordkeeping.-–Detailed information pertaining to all

5

transactions affecting an individual's outstanding indebtedness

6

to a certificate holder shall be recorded in chronological order

7

in the individual's credit file.

8

(f)  Reduction or suspension of credit.-–A certificate holder

9

may reduce an individual's credit limit or suspend credit to an

10

individual for any reason.

11

(g)  Voluntary credit suspension.--An individual may request

12

a certificate holder to suspend the individual's credit. Each

13

certificate holder shall inform the board when an individual

14

requests a suspension of credit and shall provide the board with

15

all information necessary to maintain the voluntary credit

16

suspension list under subsection (h).

17

(h)  Voluntary credit suspension list.--The board shall

18

maintain a voluntary credit suspension list of all individuals

19

who have requested suspension of credit privileges and shall

20

provide the list on a continuous basis to the credit department

21

of each certificate holder. An individual may request placement

22

on the voluntary credit suspension list by submitting to the

23

board the individual's name, address and date of birth. The

24

individual does not need to provide a reason for the request.

25

Notwithstanding any other provision of law to the contrary, the

26

board's list of individuals who have had credit privileges

27

voluntarily suspended shall be confidential, and neither the

28

board nor the credit department of a certificate holder shall

29

divulge the name of any individual on this list to any person or

30

entity other than those provided for in this subsection. To be

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1

removed from the list, the individual shall submit a request to

2

the board. The board shall remove the individual from the list

3

and inform the credit department of each certificate holder not

4

later than three business days after the board's receipt of the

5

request.

6

(i)  Liability.--A certificate holder or employee thereof

7

shall not be liable to any individual on the voluntary credit

8

suspension list or to any other party in any judicial proceeding

9

for any harm, monetary or otherwise, which may arise as a result

10

of:

11

(1)  the failure of a certificate holder to restore

12

credit privileges to an individual on the voluntary credit

13

suspension list; or

14

(2)  otherwise permitting an individual on the voluntary

15

credit suspension list to engage in gaming activity in the

16

licensed facility while on the voluntary credit suspension

17

list.

18

(j)  Tax liability.--Draws against unsecured credit extended

19

to patrons pursuant to this section which become uncollectible

20

may not be claimed by a certificate holder as a deduction,

21

credit or any other type of reduction or offset against any tax

22

imposed by this part or the act of March 4, 1971 (P.L.6, No.2),

23

known as the Tax Reform Code of 1971.

24

§ 1328A.  Key employees and occupation permits.

25

Nothing in this part shall be construed to require any

26

individual who holds a principal license, a key employee license

27

or gaming employee license under Chapter 13 (relating to

28

licensees) to obtain a separate license or permit to be employed

29

in a certificate holder's table game operation authorized under

30

this chapter.

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1

§ 1329A.  Application of Clean Indoor Air Act.

2

For the purpose of section 3(b)(11) of the act of June 13,

3

2008 (P.L.182, No.27), known as the Clean Indoor Air Act, the

4

term "gaming floor" shall include the areas of any licensed

5

facility where the slot machine licensee is authorized to place

6

and operate slot machines or conduct table games, except such

7

areas off the gaming floor where contests or tournaments are

8

conducted unless smoking is otherwise permitted in such areas.

9

§ 1329.1A.  Application of Liquor Code.

10

The provisions of section 493(24)(ii) of the act of April 12,

11

1951 (P.L.90, No.21), known as the Liquor Code, shall also apply

12

to table games.

13

SUBCHAPTER D

14

(RESERVED)

15

SUBCHAPTER E

16

TABLE GAME TESTING AND CERTIFICATION

17

Sec.

18

1341A.  Table game device and associated equipment testing and

19

certification standards.

20

§ 1341A.  Table game device and associated equipment testing and

21

certification standards.

22

(a)  Expansion of independent testing and certification

23

facility.--Within one year of the effective date of this

24

section, the board shall expand the independent testing and

25

certification facility created under section 1320(b) to include

26

the testing and certification of table game devices and

27

associated equipment. Costs associated with the expansion of the

28

facility shall be assessed on manufacturers licensed to

29

manufacture table game devices or associated equipment under

30

this part in accordance with a schedule adopted by the board.

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1

The expanded facility shall be made available to each table game

2

device manufacturer and supplier as determined by the board.

3

(b)  Use of other state standards.--The board may determine

4

whether the table game device testing and certification

5

standards of another jurisdiction within the United States in

6

which a manufacturer licensed pursuant to section 1317.1

7

(relating to manufacturer licenses) to manufacture table game

8

devices or associated equipment used in connection with table

9

games is licensed are comprehensive and thorough and provide

10

similar adequate safeguards as those required by this part. If

11

the board makes that determination, it may permit the

12

manufacturer appropriately licensed pursuant to section 1317.1

13

to deploy table game devices or associated equipment it

14

manufactures which have met the table game device testing and

15

certification standards in another jurisdiction without

16

undergoing the full testing and certification process by the

17

board's independent testing and certification facility.

18

SUBCHAPTER F

19

(RESERVED)

20

SUBCHAPTER G

21

TABLE GAME TAXES AND FEES

22

Sec.

23

1361A.  Table game authorization fee.

24

1362A.  Table game taxes.

25

1363A.  Local share assessment.

26

§ 1361A.  Table game authorization fee.

27

(a)  Amount of authorization fee.--

28

(1)  A Category 1 or a Category 2 slot machine licensee

29

that submits a petition for a table game operation

30

certificate under section 1312A (relating to petition

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1

requirements) on or before June 1, 2010, shall pay a one-time

2

nonrefundable authorization fee in the amount of $16,500,000.

3

A Category 1 or a Category 2 slot machine licensee that

4

submits a petition for a table game operation certificate

5

under section 1312A after June 1, 2010, shall pay a one-time

6

nonrefundable authorization fee in the amount of $24,750,000.

7

(2)  A Category 3 slot machine licensee that submits a

8

petition for a table game operation certificate under section

9

1312A on or before June 1, 2010, shall pay a one-time

10

nonrefundable authorization fee in the amount of $7,500,000.

11

A Category 3 slot machine licensee that submits a petition

12

for a table game operation certificate under section 1312A

13

after June 1, 2010, shall pay a one-time nonrefundable

14

authorization fee in the amount of $11,250,000.

15

(3)  Notwithstanding paragraphs (1) and (2), the holder

16

of a Category 1 or Category 3 slot machine license issued

17

after June 1, 2010, that submits a petition for a table game

18

operation certificate shall pay a one-time nonrefundable

19

authorization fee in the amount of $16,500,000 or $7,500,000,

20

respectively.

21

(4)  A table game operation certificate shall not be

22

subject to renewal or payment of an additional authorization

23

fee.

24

(b)    Payment of fee.--A slot machine licensee that submits a

25

petition on or before June 1, 2010, shall pay the required

26

authorization fee on or before June 1, 2010. The board may allow

27

the fee to be paid in installments, provided all installments

28

are paid on or before June 1, 2010. In that event, the board and

29

the slot machine licensee shall enter into a written agreement

30

setting forth the terms of payment.

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1

(c)  Failure to pay by deadline.--If a petitioner or

2

certificate holder fails to pay the required authorization fee

3

in full by June 1, 2010, the board shall impose a penalty and

4

may grant the petitioner or certificate holder up to a six-month

5

extension to pay the authorization fee or any remaining portion

6

of the authorization fee and the penalty. The board shall

7

require the petitioner or certificate holder to make weekly

8

payments until the fee and penalty are paid in full.

9

(d)  Suspension of certificate.--The board shall suspend the

10

table game operation certificate if the certificate holder fails

11

to pay the total authorization fee and the penalty prior to the

12

expiration of an extension period granted under subsection (c).

13

The suspension shall remain in effect until final payment is

14

made.

15

(e)  (Reserved).

16

(f)  Deposit of fees.–-Notwithstanding section 1208 (relating

17

to collection of fees and fines), all table game authorization

18

fees or penalties received by the board under this subchapter;

19

all table game device and associated equipment manufacturer and

20

supplier license fees; all table game device or associated

21

equipment manufacturer and supplier renewal fees; and fees for

22

licenses issued under Chapter 16 (relating to junkets) shall be

23

deposited in the General Fund.

24

§ 1362A.  Table game taxes.

25

(a)  Imposition.--

26

(1)  Except as provided in paragraphs (2) and (3), each

27

certificate holder shall report to the department and pay

28

from its daily gross table game revenue, on a form and in the

29

manner prescribed by the department, a tax of 12% of its

30

daily gross table game revenue.

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1

(2)  In addition to the tax payable under paragraph (1),

2

each certificate holder shall report to the department and

3

pay from its daily gross table game revenue, on a form and in

4

the manner prescribed by the department, a tax of 34% of its

5

daily gross table game revenue from each table game played on

6

a fully automatic electronic gaming table.

7

(3)  Until July 1, 2011, the tax reported and payable

8

under paragraph (1) shall be 14% of daily gross table game

9

revenue.

10

(b)  Deposits and distributions.-–

11

(1)  The tax imposed under subsection (a) shall be

12

payable to the department on a weekly basis and shall be

13

based upon gross table game revenue derived during the

14

previous week.

15

(2)  All funds owed to the Commonwealth under this

16

section shall be held in trust for the Commonwealth by the

17

certificate holder until the funds are paid to the

18

department. Unless otherwise agreed to by the board, a

19

certificate holder shall establish a separate bank account

20

into which gross table game revenue shall be deposited and

21

maintained until such time as the funds are paid to the

22

department under this section or paid into the fund under

23

section 1363A(a) (relating to local share assessment).

24

(3)  The tax imposed under subsection (a) shall be

25

deposited into the General Fund.

26

(c)  Deposits for property tax relief.--If, on the last day

27

of a fiscal year the balance of the Budget Stabilization Reserve

28

Fund established pursuant to section 1701-A of the act of April

29

9, 1929 (P.L.343, No.176), known as The Fiscal Code, exceeds

30

$750,000,000, as certified by the Secretary of the Budget, the

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1

deposits made into the General Fund pursuant to subsection (a)

2

shall cease and thereafter be deposited into the Property Tax

3

Relief Fund established pursuant to 4 Pa.C.S. § 1409 (relating

4

to Property Tax Relief Fund).

5

§ 1363A.  Local share assessment.

6

(a)  Required payment.--In addition to the tax imposed under

7

section 1362A (relating to table game taxes), each certificate

8

holder shall pay on a weekly basis and on a form and in a manner

9

prescribed by the department a local share assessment into a

10

restricted receipts account established within the fund. All

11

funds owed to a county or municipality under this section shall

12

be held in trust by the certificate holder until the funds are

13

paid into the account. Funds in the account are hereby

14

appropriated to the department on a continuing basis for the

15

purposes set forth in this section.

16

(b)  Distributions to counties.--The department shall make

17

quarterly distributions from the local share assessments

18

deposited into the fund under subsection (a) to counties,

19

including home rule counties, hosting a licensed facility

20

authorized to conduct table games under this chapter in

21

accordance with the following:

22

(1)  If the licensed facility is a Category 1 licensed

23

facility located at a harness racetrack and the county,

24

including a home rule county, in which the licensed facility

25

is located is:

26

(i)  A county of the third class:  50% of the

27

licensed facility's local share assessment shall be added

28

to and distributed with the funds distributed under

29

section 1403(c)(2)(i)(D) (relating to establishment of

30

State Gaming Fund and net slot machine revenue

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1

distribution).

2

(ii)  A county of the second class A:  50% of the

3

licensed facility's local share assessment shall be

4

distributed to the county.

5

(iii)  A county of the fourth class:  50% of the

6

licensed facility's local share assessment shall be added

7

to the funds in the restricted receipts account

8

established pursuant to section 1403(c)(2)(i)(E) for

9

distribution with those funds.

10

(iv)  A county of the fifth class:  50% of the

11

licensed facility's local share assessment shall be added

12

to the funds in the restricted receipts account

13

established pursuant to section 1403(c)(2)(i)(F) for

14

distribution with those funds.

15

(2)  If the facility is a Category 1 licensed facility

16

that is located at a thoroughbred racetrack and the county in

17

which the licensed facility is located is:

18

(i)  A county of the second class A:  50% of the

19

licensed facility's local share assessment shall be

20

distributed to the county to be further distributed as

21

grants to a nonprofit hospital in a first class township

22

that is contiguous to the municipality in which the

23

licensed facility is located. If the nonprofit hospital

24

ceases to exist, 50% of the licensed facility's local

25

share assessment shall be distributed to the county in

26

which the licensed facility is located.

27

(ii)  Except as set forth in subparagraph (iii), a

28

county of the third class:  50% of the licensed

29

facility's local share assessment shall be distributed to

30

the county to be used solely to fund the establishment of

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1

a county violent crime task force to reduce gang

2

violence, gun trafficking and violence and drug-related

3

crimes in the county. The district attorney shall

4

appoint, direct and coordinate the operations and

5

personnel of the task force.

6

(iii)  A county of the third class which is also a

7

home rule county:  100% of the licensed facility's local

8

share assessment shall be distributed to a community

9

college that is established in the county after the

10

effective date of this subparagraph and prior to January

11

1, 2014, to be used by the community college for

12

organizational, administrative, operating and capital

13

expenditures and the payment of principal, interest and

14

expenses related to indebtedness, subject to the

15

following:

16

(A)  Until January 1, 2014, or until a community

17

college is established after the effective date of

18

this subparagraph prior to January 1, 2014, whichever

19

occurs first, 100% of the licensed facility's local

20

share assessment shall be distributed to the county

21

redevelopment authority to be deposited and

22

maintained by the county redevelopment authority in a

23

restricted receipts account. The funds may be

24

invested by the county redevelopment authority as

25

permitted by law, and any interest earned on the

26

funds and investment income derived from the funds

27

shall be deposited into the restricted receipts

28

account. The funds in the restricted receipts account

29

shall be distributed as provided in clause (B) or

30

used as provided in clause (C), as applicable.

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1

(B)  If a community college is established in the

2

county following the effective date of this

3

subparagraph and prior to January 1, 2014, the funds

4

in the restricted receipts account established under

5

clause (A) shall be distributed in their entirety by

6

the county redevelopment authority to the community

7

college no later than 60 days following the date of

8

the establishment of the community college.

9

(C)  If a community college is not established in

10

the county following the effective date of this

11

subparagraph and prior to January 1, 2014, beginning

12

January 1, 2014, 100% of the licensed facility's

13

local share assessment shall be distributed to the

14

county redevelopment authority to be deposited into

15

the restricted receipts account established under

16

clause (A) and all funds in the restricted receipts

17

account shall be used by the county redevelopment

18

authority for a revolving loan program available to

19

municipalities within the county for infrastructure

20

projects, including, but not limited to, water,

21

sewer, storm water management, flood control, roads,

22

broadband Internet access, site remediation and

23

public utility infrastructure in areas other than a

24

public utility's own facilities. The county

25

redevelopment authority may use funds from the

26

revolving loan program for expenses related to the

27

cost to administer the revolving loan program in an

28

amount not in excess of 0.5% of the revolving loan

29

program portfolio in a given calendar year. A

30

municipality may not use funds received under the

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1

revolving loan program for general budget or

2

operating expenses.  The county redevelopment

3

authority shall develop loan program criteria and

4

guidelines consistent with the provisions of this

5

clause.

6

(D)  For purposes of this subparagraph, a

7

community college shall be considered to be

8

established on the date on which the proposed

9

community college plan is approved by the State Board

10

of Education within the meaning of section 1903-A(c)

11

of the act of March 10, 1949 (P.L.30, No.14), known

12

as the Public School Code of 1949, notwithstanding

13

the fact that a board of trustees of the community

14

college may not have yet been appointed by the

15

governing bodies of the local sponsor of the

16

community college.

17

(3)  If the facility is a Category 2 licensed facility

18

and if the county in which the licensed facility is located

19

is:

20

(i)  A county of the first class:  100% of the

21

licensed facility's local share assessment shall be added

22

to and distributed with the funds distributed under

23

section 1403(c)(2)(iii)(A).

24

(ii)  A county of the second class:  50% of the

25

licensed facility's local share assessment shall be

26

distributed as follows:

27

(A)  Eighty-five percent shall be deposited into

28

a restricted receipts account to be established in

29

the Department of Education for distribution pursuant

30

to the act of June 14, 1961 (P.L.324, No.188), known

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1

as The Library Code, for grants to an established

2

library system in the county but outside a city of

3

the second class. Funds made available under this

4

clause shall be in addition to any funding provided

5

to such libraries pursuant to the act of April 9,

6

1929 (P.L.343, No.176), known as The Fiscal Code; the

7

Public School Code of 1949; and The Library Code.

8

Notwithstanding The Library Code, in making

9

distributions from funds made available under this

10

clause, the library system shall distribute the funds

11

as follows:

12

(I)  At least 80% shall be distributed to

13

libraries in the library system in the county but

14

outside a city of the second class on a per

15

capita basis of the population of the county

16

based on the most recent decennial census

17

excluding a city of the second class.

18

(II)  At least 15% but not more than 20%

19

shall be distributed to libraries in the library

20

system in each city, borough, town or township in

21

the county outside a city of the second class,

22

which has a market value per capita below the

23

fifth percentile of all cities, boroughs, towns

24

or townships, with comparable classifications.

25

The market value per capita and percentiles under

26

this subclause shall be as determined annually by

27

the State Tax Equalization Board.

28

(III)  Not more than 5% may be used to defray

29

the reasonable and necessary administrative costs

30

of the library system in administering the funds,

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1

as determined by the Department of Education.

2

(IV)  If, after the distribution and use

3

under subclauses (I), (II) and (III), funds are

4

still available for distribution under this

5

clause, those funds shall be shall be distributed

6

to libraries in the library system in the county

7

but outside a city of the second class on a per

8

capita basis of the population of the county

9

based on the most recent decennial census

10

excluding a city of the second class.

11

(B)  Fifteen percent to a recognized tourist

12

promotion agency that is established by a home rule

13

municipality that was formerly a township or borough

14

located in the county pursuant to the act of July 4,

15

2008 (P.L.621, No.50), known as the Tourist Promotion

16

Act, and recognized by the Department of Community

17

and Economic Development and the home rule

18

municipality.

19

(iii)  A county of the third class where a city of

20

the third class hosting the licensed facility is located

21

in two counties of the third class:  50% of the licensed

22

facility's local share assessment shall be distributed as

23

follows:

24

(A)  Sixty percent to the county in which the

25

licensed facility is located for economic development

26

projects, community improvement projects and other

27

projects in the public interest within the county.

28

(B)    Twenty percent to the nonhost city of the

29

third class in the county in which the licensed

30

facility is located.

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1

(C)  Twenty percent to the nonhost county in

2

which the host city is located, of which 50% shall be

3

used solely for grants to municipalities that are

4

contiguous to the host city for economic development

5

projects, community improvement projects and other

6

projects in the public interest.

7

(iv)  A county of the fifth class:  50% of the

8

licensed facility's local share assessment shall be

9

distributed as follows:

10

(A)  Fifty percent shall be added to the funds in

11

the restricted receipts account established pursuant

12

to section 1403(c)(2)(iii)(F)(I) for distribution

13

with those funds.

14

(B)  Fifty percent shall be transferred to the

15

Pennsylvania Higher Education Assistance Agency for

16

deposit into a restricted receipts account to be used

17

exclusively for grants to a school of medicine

18

located in a city of the second class A within a

19

county of the third class for operating costs

20

associated with the school of medicine.

21

(4)  The following apply:

22

(i)  If the facility is a Category 3 licensed

23

facility located in a county of the second class A:  50%

24

of the licensed facility's local share assessment shall

25

be deposited into a restricted receipts account to be

26

established in the Commonwealth Financing Authority to be

27

used exclusively for grants or guarantees for projects in

28

the county that qualify under 64 Pa.C.S. §§ 1551

29

(relating to Business in Our Sites Program), 1556

30

(relating to Tax Increment Financing Guarantee Program)

- 370 -

 


1

and 1558 (relating to Water Supply and Waste Water

2

Infrastructure Program).

3

(ii)  Except as provided in subparagraph (i), if the

4

facility is a Category 3 licensed facility in a county of

5

any class:  50% of the licensed facility's local share

6

assessment shall be added to the funds in the restricted

7

receipts account established under section 1403(c)(2)(iv)

8

for distribution with those funds.

9

(5)    Except as otherwise provided in this subsection, if

10

the facility is a Category 1 or a Category 2 licensed

11

facility in a county of any class:  50% of the licensed

12

facility's local share assessment shall be distributed in

13

accordance with section 1403(c) based upon the category and

14

type of licensed facility and the classification of the

15

county where the licensed facility is located.

16

(c)  Distributions to municipalities.--The department shall

17

make quarterly distributions from the local share assessments

18

deposited into the fund under subsection (a) to municipalities,

19

including home rule municipalities, hosting a licensed facility

20

authorized to conduct table games under this chapter in

21

accordance with the following:

22

(1)  If the licensed facility is a Category 2 licensed

23

facility and is located in a city of the second class, 50% of

24

the licensed facility's local share assessment shall be

25

deposited into a restricted receipts account to be

26

established in the Department of Education for distribution

27

pursuant to The Library Code for grants to an established

28

local library in the city for the purpose of maintaining the

29

library branch system in existence on January 1, 2011. Funds

30

made available under this clause shall be in addition to any

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1

funding provided to such libraries pursuant to The Fiscal

2

Code, the Public School Code of 1949 and The Library Code. If

3

the established local library in the city fails to maintain

4

the library branch system as provided in this paragraph, 50%

5

of the licensed facility's local share assessment shall be

6

distributed to the city to be used solely to fund the accrued

7

liability of all pension plans maintained by the city.

8

(2)  If the licensed facility is a Category 1 licensed

9

facility located at a harness racetrack in a city of the

10

third class, 50% of the licensed facility's local share

11

assessment shall be distributed to the city solely for the

12

purpose of becoming and remaining a member or local sponsor

13

of a community college on behalf of all students in the

14

school district. If in any year the amount distributable or

15

received under this paragraph exceeds the amount necessary

16

for the city to become or remain a member or local sponsor,

17

the excess shall be distributed to, or retained by, the city

18

and may be used for any lawful purpose.

19

(3)  If a licensed facility is a Category 2 facility and

20

is located in a city of the third class and the city is

21

located in more than one county of the third class, 50% of

22

the licensed facility's local share assessment shall be

23

distributed as follows:

24

(i)  50% to the host city;

25

(ii)  20% to a city of the third class located solely

26

in the nonhost county in which the host city of the third

27

class is also located; and

28

(iii)  30% to a nonhost city of the third class

29

located solely in the host county.

30

(4)  If the licensed facility is a Category 1 licensed

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1

facility located at a harness racetrack in a township of the

2

first class, 50% of the licensed facility's local share

3

assessment shall be distributed to the township, subject,

4

however, to the budgetary limitation in this paragraph. The

5

amount distributed to the township shall not exceed 50% of

6

the township's total budget for fiscal year 2009, adjusted

7

for inflation in subsequent years by an amount not to exceed

8

an annual cost-of-living adjustment calculated by applying

9

the percentage change in the Consumer Price Index immediately

10

prior to the date the adjustment is due to take effect. Any

11

funds not distributed to the township because of the

12

budgetary limitation shall be distributed in accordance with

13

subsection (b) based upon the classification of the county

14

where the licensed facility is located.

15

(5)  The following apply:

16

(i)  Except as provided in subparagraphs (ii) and

17

(iii), if the licensed facility is a Category 1 or

18

Category 2 licensed facility and is located in a township

19

of the second class, 50% of the licensed facility's local

20

share assessment shall be distributed to the township,

21

subject, however, to the budgetary limitation in this

22

subparagraph. The amount distributed to the township

23

shall not exceed 50% of the township's total budget for

24

fiscal year 2009, adjusted for inflation in subsequent

25

years by an amount not to exceed an annual cost-of-living

26

adjustment calculated by applying the percentage change

27

in the Consumer Price Index immediately prior to the date

28

the adjustment is due to take effect. Any funds not

29

distributed to the township because of the budgetary

30

limitation shall be distributed in accordance with

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1

subsection (b) based upon the classification of county

2

where the licensed facility is located. No funds shall be

3

distributed under this subparagraph to a township of the

4

second class located in a county of the third class

5

receiving any funds under subsection (b)(2)(iii).

6

(ii)  If the licensed facility is a Category 1

7

licensed facility located at a thoroughbred racetrack in

8

a township of the second class in a county of the second

9

class A, 50% of the licensed facility's local share

10

assessment shall be distributed to the recreation

11

department of the township of the second class to support

12

youth athletics, subject, however, to the budgetary

13

limitation in this subparagraph. The amount distributed

14

shall not exceed 50% of the department's total budget for

15

fiscal year 2009, adjusted for inflation in subsequent

16

years by an amount not to exceed an annual cost-of-living

17

adjustment calculated by applying the percentage change

18

in the Consumer Price Index immediately prior to the date

19

the adjustment is due to take effect. Any funds not

20

distributed to the recreation department because of the

21

budgetary limitation shall be distributed in accordance

22

with subsection (b) based upon the classification of

23

county where the licensed facility is located.

24

(iii)  If the licensed facility is a Category 1

25

licensed facility located at a thoroughbred racetrack in

26

a township of the second class in a county of the third

27

class with a population of not less than 200,000 but not

28

more than 260,000 where the licensed facility and all

29

attached or contiguous acreage owned by the licensed

30

facility is located in more than one township of the

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1

second class, 50% of the licensed facility's local share

2

assessment shall be distributed as follows:

3

(A)  $120,000 of the licensed facility's local

4

share assessment shall be distributed annually to

5

each such township of the second class; and

6

(B) remaining funds shall be added to and

7

distributed with the funds distributed to the county

8

under subsection (b)(2)(ii).

9

(6)  The following apply:

10

(i)  If the licensed facility is a Category 3

11

licensed facility and is located in a borough in a county

12

of the third class and the borough is contiguous to a

13

city of the third class:

14

(A)  Fifty percent of the licensed facility's

15

local share assessment shall be distributed to the

16

host borough, subject to clause (C).

17

(B)  Fifty percent of the licensed facility's

18

local share assessment shall be distributed to the

19

city of the third class that is contiguous to the

20

host borough, subject to clause (C).

21

(C)  The amount distributed to the borough or the

22

city shall not exceed 50% of the borough's or the

23

city's total budget for fiscal year 2009, adjusted

24

for inflation in subsequent years by an amount not to

25

exceed an annual cost-of-living adjustment calculated

26

by applying the percentage change in the Consumer

27

Price Index immediately prior to the date the

28

adjustment is due to take effect. Any funds not

29

distributed to the borough or the city because of the

30

budgetary limitation shall be distributed in

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1

accordance with subsection (b) based upon the

2

classification of the county where the licensed

3

facility is located.

4

(ii)  Except as provided in subparagraph (i), if the

5

licensed facility is a Category 3 licensed facility and

6

is located in a municipality of any class, 50% of the

7

licensed facility's local share assessment shall be

8

distributed to the municipality, subject, however, to the

9

budgetary limitation in this subparagraph. The amount

10

distributed to the municipality shall not exceed 50% of

11

the municipality's total budget for fiscal year 2009,

12

adjusted for inflation in subsequent years by an amount

13

not to exceed an annual cost-of-living adjustment

14

calculated by applying the percentage change in the

15

Consumer Price Index immediately prior to the date the

16

adjustment is due to take effect. Any funds not

17

distributed to the municipality because of the budgetary

18

limitation shall be distributed in accordance with

19

subsection (b) based upon the classification of county

20

where the licensed facility is located.

21

(7)  Except as otherwise provided in this subsection, if

22

the facility is a Category 1 or a Category 2 licensed

23

facility in a municipality of any class, 50% of the licensed

24

facility's local share assessment shall be distributed to the

25

municipality, subject, however, to the budgetary limitation

26

in this paragraph. The amount distributed to the municipality

27

shall not exceed 50% of the municipality's total budget for

28

fiscal year 2009 adjusted for inflation in subsequent years

29

by an amount not to exceed the annual cost-of-living

30

adjustment calculated by applying the percentage change in

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1

the Consumer Price Index immediately prior to the date the

2

adjustment is due to take effect. Any funds not distributed

3

to the municipality because of the budgetary limitation shall

4

be distributed in accordance with subsection (b) based upon

5

the classification of county where the licensed facility is

6

located.

7

(d)  Construction.--The following shall apply to

8

distributions provided for in this section:

9

(1)  Distributions to counties shall be based upon county

10

classifications in effect on the effective date of this

11

section and any reclassification of a county as a result of a

12

Federal decennial census or pursuant to an act of the General

13

Assembly shall not apply to this section unless the act of

14

the General Assembly specifically provides otherwise.

15

(2)  Distributions to municipalities shall be based upon

16

municipal classifications in effect on the effective date of

17

this section and any reclassification of a municipality as a

18

result of a Federal decennial census or pursuant to an act of

19

the General Assembly shall not apply to this section unless

20

the act of the General Assembly specifically provides

21

otherwise.

22

(e)  Miscellaneous provisions.--

23

(1)  If any provision of this section is found to be

24

unenforceable for any reason, the distribution provided for

25

in such unenforceable provision shall be made to the

26

municipality in which the licensed facility is located.

27

(2)  References to the Consumer Price Index shall mean

28

the Consumer Price Index for All Urban Consumers for the

29

Pennsylvania, New Jersey, Delaware and Maryland area for the

30

most recent 12-month period for which figures have been

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1

officially reported by the United States Department of Labor,

2

Bureau of Labor Statistics.

3

(3)  A person or its affiliated entity or a political

4

subdivision may not compensate or incur an obligation to

5

compensate a person to engage in lobbying for compensation

6

contingent in whole or in part upon the approval, award,

7

receipt or denial of funds under this section. A person or

8

its affiliated entity may not engage in or agree to engage in

9

lobbying for compensation contingent in whole or in part upon

10

the approval, award, receipt or denial of funds under this

11

section. A violation of this paragraph shall be considered an

12

intentional violation of 65 Pa.C.S. § 13A09(e) (relating to

13

penalties). This paragraph shall not apply to a county or

14

municipality that compensates a person to prepare a grant

15

application for funds under this section if all of the

16

following requirements are met:

17

(i)  The person is not identified in the application.

18

(ii)  The person has no direct contact with the

19

agency, county or municipality providing the funding.

20

(iii)  The person is paid a fixed fee or percentage

21

of the amount of any funds approved, awarded or received

22

of up to 0.5%.

23

(4)  In cooperation with the department, the Department

24

of Community and Economic Development, and the Commonwealth

25

Financing Authority, the Office of the Budget shall submit an

26

annual report on all distributions of local share assessments

27

to counties and municipalities under this section to the

28

chairman and minority chairman of the Appropriations

29

Committee of the Senate, the chairman and the minority

30

chairman of the Community, Economic and Recreational

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1

Development Committee of the Senate, the chairman and the

2

minority chairman of the Appropriations Committee of the

3

House of Representatives and the chairman and minority

4

chairman of the Gaming Oversight Committee of the House of

5

Representatives.

6

(5)    All counties and municipalities receiving

7

distributions of local share assessments under this section

8

shall submit an annual report to the Department of Community

9

and Economic Development on a form prepared by the Department

10

of Community and Economic Development that sets forth the

11

amount and use of the funds received for the prior calendar

12

year. The report shall set forth whether the funds received

13

were deposited into the county's or municipality's general

14

fund or committed to a specific project or use. The report

15

shall be submitted by August 31, 2010, and by August 31 of

16

each year thereafter.

17

(f)  Definitions.--As used in this section, the following

18

words and phrases shall have the meanings given to them in this

19

subsection:

20

"Community college."  The term shall have the meaning

21

ascribed to it in section 1901-A(4) of the act of March 10, 1949

22

(P.L.30, No.14), known as the Public School Code of 1949.

23

"Local share assessment."  Two percent of a certificate

24

holder's daily gross table game revenue.

25

Section 11.2.  Sections 1401(b), 1402(a) and 1402.1 of Title

26

4 are amended to read:

27

§ 1401.  Slot machine licensee deposits.

28

* * *

29

(b)  Initial deposit of funds.--Not later than two business

30

days prior to the commencement of slot machine operations by a

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1

slot machine licensee, [the] a slot machine licensee shall

2

deposit and maintain the [sum of $5,000,000] following sums in

3

its account to guarantee the payment of funds to the

4

Commonwealth under this part and as security for its obligations

5

under section 1405 (relating to Pennsylvania Race Horse

6

Development Fund)[.]:

7

(1)  For a Category 1 or Category 2 slot machine

8

licensee, $1,500,000.

9

(2)  For a Category 3 slot machine licensee, $1,000,000.

10

No additional minimum deposit shall be required from a slot

11

machine licensee if a slot machine licensee is granted a table

12

game operation certificate under Chapter 13A (relating to table

13

games).

14

* * *

15

§ 1402.  Gross terminal revenue deductions.

16

(a)  Deductions.--After determining the appropriate

17

assessments for each slot machine licensee, the department shall

18

determine costs, expenses or payments from each account

19

established under section 1401 (relating to slot machine

20

licensee deposits). The following costs and expenses shall be

21

transferred to the appropriate agency upon appropriation by the

22

General Assembly:

23

(1)  The costs and expenses to be incurred by the

24

department in administering this part at each slot machine

25

licensee's licensed facility based upon a budget submitted by

26

the department [to and approved by the board] under section

27

1402.1 (relating to itemized budget reporting).

28

(2)  The other costs and expenses to be incurred by the

29

department in administering this part based upon a budget

30

submitted by the department [to and approved by the board]

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1

under section 1402.1.

2

(3)  Sums necessary to repay any loans made by the

3

General Fund to the department in connection with carrying

4

out its responsibilities under this part, including the costs

5

of the initial acquisition of the central control computer

6

and any accessories or associated equipment.

7

(4)  The costs and expenses to be incurred by the

8

Pennsylvania State Police and the Office of Attorney General

9

and not otherwise reimbursed under this part in carrying out

10

their respective responsibilities under this part based upon

11

[a budget] budgets submitted by the Pennsylvania State Police

12

and the Attorney General [to and approved by the board] under

13

section 1402.1.

14

(5)  Sums necessary to repay any loans made by the

15

General Fund to the Pennsylvania State Police in connection

16

with carrying out its responsibilities under this part.

17

(6)  The costs and expenses to be incurred by the board

18

in carrying out its responsibilities under this part based

19

upon a budget [approved] submitted by the board under section

20

1402.1.

21

(7)  Sums necessary to repay any loans made by the

22

General Fund to the board in connection with carrying out its

23

responsibilities under this part.

24

* * *

25

§ 1402.1.  Itemized budget reporting.

26

(a)  Submission.--The board, department, Pennsylvania State

27

Police and [the] Office of Attorney General shall prepare and

28

annually submit to the chairman of the Appropriations Committee

29

of the Senate and the chairman of the Appropriations Committee

30

of the House of Representatives an itemized budget consisting of

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1

amounts to be appropriated out of the accounts established under

2

section 1401 (relating to slot machine licensee deposits)

3

necessary to administer this part. The department, Pennsylvania

4

State Police and Office of Attorney General shall provide copies

5

of their itemized budgets to the board at the same time they are

6

submitted to the chairmen of the committees.

7

(b)  Analyses and recommendations.--As soon as practicable

8

after receiving copies of the itemized budgets submitted under

9

subsection (a), the board shall prepare and submit to the

10

chairmen of the committees analyses of, and make recommendations

11

regarding, the itemized budgets.

12

Section 11.3.  Section 1403(b), (c)(2)(i)(D), (E) and (F),

13

(iii)(F) and (iv) and (3)(v) and (viii) of Title 4 are amended

14

and the section is amended by adding subsections to read:

15

§ 1403.  Establishment of State Gaming Fund and net slot machine

16

revenue distribution.

17

* * *

18

(b)  Slot machine tax.--[The department shall determine and

19

each] Each slot machine licensee shall report to the department

20

and pay on a form and in a manner prescribed by the department a

21

daily tax of 34% from its daily gross terminal revenue from the

22

slot machines in operation at its facility and a local share

23

assessment as provided in subsection (c) [into the fund]. All

24

funds owed to the Commonwealth, a county or a municipality under

25

this section shall be held in trust by the licensed gaming

26

entity for the Commonwealth, the county and the municipality 

27

until the funds are paid or transferred [and distributed] to the

28

fund. Unless otherwise agreed to by the [Gaming Board] board, a

29

licensed gaming entity shall establish a separate bank account

30

to maintain [gaming proceeds] gross terminal revenue until such

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1

time as [they] the funds are paid or transferred under this

2

section. Moneys in the fund are hereby appropriated to the

3

department on a continuing basis for the purposes set forth in

4

subsection (c).

5

(c)  Transfers and distributions.--The department shall:

6

* * *

7

(2)  From the local share assessment established in

8

subsection (b), make quarterly distributions among the

9

counties hosting a licensed facility in accordance with the

10

following schedule:

11

(i)  If the licensed facility is a Category 1

12

licensed facility that is located at a harness racetrack

13

and the county, including a home rule county, in which

14

the licensed facility is located is:

15

* * *

16

(D)  (I)  A county of the third class:  Except as

17

provided in subclause (II), 2% of the gross

18

terminal revenue from each such licensed facility

19

shall be deposited into a restricted receipts 

20

account to be established in the [Department of

21

Community and Economic Development] Commonwealth

22

Financing Authority to be used exclusively for

23

grants for [health, safety and economic

24

development projects] projects in the public

25

interest to municipalities within the county

26

where the licensed facility is located.

27

[Municipalities that are contiguous to the

28

municipality hosting such licensed facility shall

29

be given priority by the Department of Community

30

and Economic Development in the award of such

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1

grants.]

2

(I.1)  Priority shall be given to multiyear

3

projects approved or awarded by the Department of

4

Community and Economic Development under

5

subclause (I) on or before the effective date of

6

this subclause.

7

(II)  If a licensed facility is located in

8

one of two counties of the third class where a

9

city of the third class is located in both

10

counties of the third class, the county in which

11

the licensed facility is located shall receive

12

1.2% of the gross terminal revenue to be

13

distributed as follows:  20% to the host city,

14

30% to the host county and 50% to the host county

15

for the purpose of making municipal grants within

16

the county, with priority given to municipalities

17

contiguous to the host city. The county of the

18

third class, which includes a city of the third

19

class that is located in two counties of the

20

third class and is not the host county for the

21

licensed facility, shall receive .8% of the gross

22

terminal revenue to be distributed as follows:

23

60% to a nonhost city of the third class located

24

solely in the nonhost county in which the host

25

city of the third class is also located or 60% to

26

the nonhost city of the third class located both

27

in the host and nonhost counties of the third

28

class, 35% to the nonhost county and 5% to the

29

nonhost county for the purpose of making

30

municipal grants within the county.

- 384 -

 


1

(E)  A county of the fourth class:  2% of the

2

gross terminal revenue from each such licensed

3

facility shall be distributed as follows:

4

(I)  The department shall make distributions

5

directly to each municipality within the county,

6

except the host municipality, by using a formula

7

equal to the sum of $25,000 plus $10 per resident

8

of the municipality using the most recent

9

population figures provided by the Department of

10

Community and Economic Development, provided,

11

however, that the amount so distributed to any

12

municipality shall not exceed 50% of its total

13

budget for fiscal year 2009, adjusted for

14

inflation in subsequent fiscal years by an amount

15

not to exceed an annual cost-of-living adjustment

16

calculated by applying any upward percentage

17

change in the Consumer Price Index immediately

18

prior to the date the adjustment is due to take

19

effect. Distributions to a municipality in

20

accordance with this subclause shall be deposited

21

into a special fund which shall be established by

22

the municipality. The governing body of the

23

municipality shall have the right to draw upon

24

the special fund for any lawful purpose provided

25

that the municipality identifies the fund as the

26

source of the expenditure. Each municipality

27

shall annually submit a report to the Department

28

of Community and Economic Development detailing

29

the amount and purpose of each expenditure made

30

from the special fund during the prior fiscal

- 385 -

 


1

year.

2

(II)  Any funds not distributed under

3

subclause (I) shall be deposited into a

4

restricted receipts account established in the

5

Department of Community and Economic Development

6

to be used exclusively for grants to the county,

7

to economic development authorities or

8

redevelopment authorities within the county for

9

grants for economic development projects,

10

infrastructure projects, job training, community

11

improvement projects, other projects in the

12

public interest, and necessary and reasonable

13

administrative costs. Notwithstanding the

14

provisions of the act of February 9, 1999 (P.L.1,

15

No.1), known as the Capital Facilities Debt

16

Enabling Act, grants made under this clause may

17

be utilized as local matching funds for other

18

grants or loans from the Commonwealth.

19

(F)  Counties of the fifth through eighth

20

classes:

21

(I)  Except as set forth in subclause (II), 

22

2% of the gross terminal revenue from each such

23

licensed facility shall be deposited into a

24

restricted account established in the Department

25

of Community and Economic Development to be used

26

exclusively for grants to the county.

27

(II)  If the licensed facility is located in

28

a second class township in a county of the fifth

29

class, 2% of the gross terminal revenue from the

30

licensed facility shall be distributed as

- 386 -

 


1

follows:

2

(a)  1% shall be deposited into a

3

restricted receipts account to be established

4

in the Commonwealth Financing Authority to be

5

used exclusively for grants for projects in

6

the public interest to municipalities within

7

the county where the licensed facility is

8

located.

9

(b)  1% shall be distributed to the county

10

for projects in the public interest in the

11

county.

12

* * *

13

(iii)  If the facility is a Category 2 licensed

14

facility and if the county in which the licensed facility

15

is located is:

16

* * *

17

(F)  Counties of the fifth class:  2% of the

18

gross terminal revenue from each such licensed

19

facility shall be deposited and distributed as

20

follows:

21

(I)  One percent to be distributed as

22

follows:

23

(a)  Beginning in 2010, the sum of

24

$2,400,000 annually for a period of 20 years

25

to the county for purposes of funding debt

26

service related to the construction of a

27

community college campus located within the

28

county.

29

(b)  Any funds not distributed under

30

subclause (a) shall be deposited into a

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1

restricted receipts account to be established 

2

in the [Department of Community and Economic

3

Development] Commonwealth Financing Authority 

4

to be used exclusively for grants within the

5

county for economic development projects,

6

road projects located within a 20-mile radius

7

of the licensed facility and located within

8

the county, community improvement projects

9

and other projects in the public interest

10

within the county. The amount under this

11

subclause includes reasonable administrative

12

costs.

13

(II)  One percent shall be deposited into a

14

restricted receipts account to be established in

15

the [Department of Community and Economic

16

Development] Commonwealth Financing Authority to

17

be used exclusively for grants within contiguous

18

counties for economic development projects,

19

community improvement projects and other projects

20

in the public interest within contiguous

21

counties. The amount under this subclause

22

includes reasonable administrative costs. A

23

contiguous county that hosts a Category 1

24

licensed facility shall be ineligible to receive

25

grants under this subclause.

26

(II.1)  Priority shall be given to multiyear

27

projects approved or awarded by the Department of

28

Community and Economic Development under

29

subclause (II) on or before the effective date of

30

this subclause.

- 388 -

 


1

(III)  Fifty percent of any revenue required

2

to be transferred under paragraph (3)(v) shall be

3

deposited into the restricted receipts account

4

established under subclause (I)(b), and 50% shall

5

be deposited into the restricted [receipt]

6

receipts account established under subclause

7

(II). Notwithstanding the Capital Facilities Debt

8

Enabling Act, grants made under this clause may

9

be utilized as local matching funds for other

10

grants or loans from the Commonwealth.

11

* * *

12

(iv)  [If] (A)  Except as provided in clause (B) or

13

(C), if the facility is a Category 3 licensed

14

facility, 2% of the gross terminal revenue from [each

15

such] the licensed facility shall be deposited into a

16

restricted receipts account established in the

17

Department of Community and Economic Development to

18

be used exclusively for grants to the county, to

19

economic development authorities or redevelopment

20

authorities within the county for grants for economic

21

development projects [and], community improvement

22

projects and other projects in the public interest.

23

(B)  If the facility is a Category 3 licensed

24

facility located in a county of the second class A,

25

2% of the gross terminal revenue from the licensed

26

facility shall be deposited into a restricted

27

receipts account to be established in the

28

Commonwealth Financing Authority to be used

29

exclusively for grants or guarantees for projects in

30

the host county that qualify under 64 Pa.C.S. §§ 1551

- 389 -

 


1

(relating to Business in Our Sites Program), 1556

2

(relating to Tax Increment Financing Guarantee

3

Program) and 1558 (relating to Water Supply and

4

Wastewater Infrastructure Program).

5

(C)  If the facility is a Category 3 licensed

6

facility located in a county of the fifth class that

7

is contiguous to a county of the seventh class, 2% of

8

the gross terminal revenue from the licensed facility

9

shall be deposited into a restricted receipts account

10

to be established in the Commonwealth Financing

11

Authority to be used exclusively for grants within

12

the county for economic development projects,

13

infrastructure projects, community improvement

14

projects and other projects in the public interest

15

within the county and for infrastructure projects

16

within a 20-mile radius of the licensed facility in a

17

contiguous county of the seventh class.

18

* * *

19

(3)  From the local share assessment established in

20

subsection (b), make quarterly distributions among the

21

municipalities, including home rule municipalities, hosting a

22

licensed facility in accordance with the following schedule:

23

* * *

24

(v)  To a township of the second class hosting a

25

licensed facility[, other than a Category 3 licensed

26

facility,]

27

(A)  2% of the gross terminal revenue or

28

$10,000,000 annually, whichever is greater, shall be

29

paid by each licensed gaming entity operating a

30

licensed facility [located in the township], other

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1

than a Category 3 licensed facility or a licensed

2

facility owning land adjacent to the licensed

3

facility located in more than one township of the

4

second class, to the township of the second class

5

hosting the licensed facility, subject, however, to

6

the budgetary limitation in this subparagraph. The

7

amount allocated to the designated municipalities

8

shall not exceed 50% of their total budget for fiscal

9

year 2003-2004, adjusted for inflation in subsequent

10

years by an amount not to exceed an annual cost-of-

11

living adjustment calculated by applying the

12

percentage change in the Consumer Price Index

13

immediately prior to the date the adjustment is due

14

to take effect. Any remaining money shall be

15

collected by the department from each licensed gaming

16

entity and distributed in accordance with paragraph

17

(2) based upon the classification of county where the

18

licensed facility is located. [Where the licensed

19

facility is other than a Category 3 and is located in

20

more than one second class township, the] If revenues

21

generated by the 2% do not meet the $10,000,000

22

minimum specified in this subparagraph, the

23

department shall collect the remainder of the minimum

24

amount of $10,000,000 from each licensed gaming

25

entity operating a licensed facility in the township,

26

pay any balance due to the township and transfer any

27

remainder in accordance with paragraph (2).

28

(B)  2% of the gross terminal revenue or

29

$10,000,000 annually, whichever is greater, less the

30

amount paid under clause (C), shall be paid by each

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1

licensed gaming entity operating a licensed facility

2

and owning land adjacent to the licensed facility

3

located in more than one township of the second

4

class, other than a Category 3 licensed facility, to

5

the township of the second class hosting the licensed

6

facility, subject, however, to the budgetary

7

limitation in this subparagraph. The amount allocated

8

to the designated municipalities may not exceed 50%

9

of their total budget for the fiscal year 2003-2004,

10

adjusted for inflation in subsequent years by an

11

amount not to exceed an annual cost-of-living

12

adjustment calculated by applying the percentage

13

change in the Consumer Price Index immediately prior

14

to the date the adjustment is due to take effect. Any

15

remaining money shall be collected by the department

16

from each licensed gaming entity and distributed in

17

accordance with paragraph (2) based upon the

18

classification of the county where the licensed

19

facility is located. The county commissioners of

20

[the] a county of the third class in which the

21

licensed facility is located shall appoint an

22

advisory committee for the purpose of advising the

23

county as to the need for municipal grants for

24

health, safety, transportation and other projects in

25

the public interest to be comprised of two

26

individuals from the host municipality, two from

27

contiguous municipalities within the county of the

28

third class and one from the host county. [A county

29

other than a county of the third class in which the

30

licensed facility is located is not required to

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1

appoint an advisory committee and may use funds

2

received under this subparagraph for purposes other

3

than municipal grants.] In the event that the

4

revenues generated by the 2% do not meet the

5

$10,000,000 minimum specified in this subparagraph,

6

the department shall collect the remainder of the

7

minimum amount of $10,000,000 from each licensed

8

gaming entity operating a licensed facility in the

9

township, pay any balance due to the township and

10

transfer any remainder in accordance with paragraph

11

(2).

12

(C)  $160,000 annually shall be paid by each

13

licensed gaming entity operating a licensed facility

14

and owning land adjacent to the licensed facility

15

located in more than one township of the second

16

class, other than a Category 3 licensed facility, to

17

the township of the second class that is located in a

18

county of the fifth class in which the adjacent land

19

is located, including racetracks, grazing fields or

20

any other adjoining real property.

21

* * *

22

(viii)  [To] (A)  Except as provided in clause (B) or

23

(C), to a municipality of any class hosting a

24

Category 3 facility, 2% of the gross terminal revenue

25

from the Category 3 licensed facility located in the

26

municipality, subject, however, to the budgetary

27

limitation in this [subparagraph] clause. The amount

28

allocated to the designated municipalities shall not

29

exceed 50% of their total budget for fiscal year

30

[2003-2004] 2009, adjusted for inflation in

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1

subsequent years by an amount not to exceed an annual

2

cost-of-living adjustment calculated by applying the

3

percentage change in the Consumer Price Index

4

immediately prior to the date the adjustment is due

5

to take effect. Any remaining money shall be

6

collected by the department from each licensed gaming

7

entity and distributed in accordance with paragraph

8

(2) based upon the classification of county where the

9

licensed facility is located.

10

(B)  If the municipality hosting a Category 3

11

licensed facility is a borough located in a county of

12

the third class and the borough is contiguous to a

13

city of the third class, 1% of gross terminal revenue

14

shall be distributed to the host borough and 1% of

15

gross terminal revenue shall be distributed to the

16

city of the third class that is contiguous to the

17

host borough, subject, however, to the budgetary

18

limitation in this clause. The amount allocated to

19

each designated municipality shall not exceed 50% of

20

its total budget for fiscal year 2009, adjusted for

21

inflation in subsequent years by an amount not to

22

exceed an annual cost-of-living adjustment calculated

23

by applying the percentage increase, if any, in the

24

Consumer Price Index immediately prior to the date

25

the adjustment is due to take effect. Any remaining

26

money shall be collected by the department from each

27

licensed gaming entity and distributed in accordance

28

with paragraph (2) based upon the classification of

29

county where the licensed facility is located.

30

(C)  If the municipality hosting a Category 3

- 394 -

 


1

licensed facility is a township of the second class

2

in a county of the fifth class, 2% of the gross

3

terminal revenue from the Category 3 licensed

4

facility located in the municipality, subject,

5

however, to the budgetary limitation in this clause.

6

The amount allocated to the designated municipalities

7

shall not exceed 50% of their total budget for fiscal

8

year 2009, adjusted for inflation in subsequent years

9

by an amount not to exceed an annual cost-of-living

10

adjustment calculated by applying the percentage

11

change in the consumer Price Index immediately prior

12

to the date the adjustment is due to take effect. Any

13

remaining money shall be collected by the department

14

from each licensed gaming entity and distributed in

15

equal amounts to each municipality contiguous to the

16

host municipality. However, if the amount to be

17

allocated to any contiguous municipality exceeds 50%

18

of the municipality's total budget for fiscal year

19

2009, adjusted for inflation in subsequent years by

20

an amount not to exceed an annual cost-of-living

21

adjustment calculated by applying the percentage

22

change in the Consumer Price Index immediately prior

23

to the date the adjustment is due to take effect. Any

24

money remaining following distribution to contiguous

25

municipalities shall be collected by the department

26

and distributed in accordance with paragraph (2)

27

based upon the classification of county where the

28

licensed facility is located.

29

* * *

30

(e)  Reporting.--

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1

(1)  In cooperation with the department, the Department

2

of Community and Economic Development shall submit an annual

3

report on all distributions of local share assessments to

4

counties and municipalities under this section to the

5

chairman and minority chairman of the Appropriations

6

Committee of the Senate, the chairman and minority chairman

7

of the Community, Economic and Recreational Development

8

Committee of the Senate, the chairman and minority chairman

9

of the Appropriations Committee of the House of

10

Representatives and the chairman and minority chairman of the

11

Gaming Oversight Committee of the House of Representatives.

12

The report shall be submitted by August 31, 2010, and by

13

August 31 of each year thereafter.

14

(2)  All counties and municipalities receiving

15

distributions of local share assessments under this section

16

shall submit information to the Department of Community and

17

Economic Development on a form prepared by the Department of

18

Community and Economic Development that sets forth the amount

19

and use of the funds received in the prior calendar year. The

20

form shall set forth whether the funds received were

21

deposited in the county's or municipality's General Fund or

22

committed to a specific project or use.

23

(f)  Prohibited activities.--

24

(1)  A person or its affiliated entity or a political

25

subdivision shall not compensate or incur an obligation to

26

compensate a person to engage in lobbying for compensation

27

contingent in whole or in part upon the approval, award,

28

receipt or denial of funds under this section. A person or

29

its affiliated entity shall not engage in or agree to engage

30

in lobbying for compensation contingent in whole or in part

- 396 -

 


1

upon the approval, award, receipt or denial of funds under

2

this section. This subsection shall not apply to a county or

3

municipality that compensates a person to prepare a grant

4

application for funds under this section if the following

5

requirements are met:

6

(i)  The person is not identified in the application.

7

(ii)  The person has no direct contact with the

8

agency, county or municipality providing the funding.

9

(iii)  The person is paid a fixed fee or percentage

10

of the amount of any funds approved, awarded or received

11

up to .5%.

12

(2)  A violation of this section shall be considered an

13

intentional violation of 65 Pa.C.S. § 13A09(e) (relating to

14

penalties).

15

Section 11.4.  Section 1406(a) of Title 4 is amended to read:

16

§ 1406.  Distributions from Pennsylvania Race Horse Development

17

Fund.

18

(a)  Distributions.--Funds [from] in the Pennsylvania Race

19

Horse Development Fund are hereby appropriated to the department

20

on a continuing basis for the purposes set forth in this

21

subsection and shall be distributed to each active and operating

22

Category 1 licensee conducting live racing [in the following

23

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

- 397 -

 


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 paragraphs (2) and (2.1), the 

10

distributions to licensed racing entities from the

11

Pennsylvania Race Horse Development Fund shall be allocated

12

as follows:

13

(i)  Eighty percent shall be deposited weekly into a

14

separate, interest-bearing purse account to be

15

established by and for the benefit of the horsemen. The

16

earned interest on the account shall be credited to the

17

purse account. Licensees shall combine these funds with

18

revenues from existing purse agreements to fund purses

19

for live races consistent with those agreements with the

20

advice and consent of the horsemen.

21

(ii)  For thoroughbred tracks, 16% shall be deposited

22

on a monthly basis into the Pennsylvania Breeding Fund as

23

defined in section 223 of the Race Horse Industry Reform

24

Act. For standardbred tracks, 8% shall be deposited on a

25

monthly basis in the Pennsylvania Sire Stakes Fund as

26

defined in section 224 of the Race Horse Industry Reform

27

Act, and 8% shall be deposited on a monthly basis into a

28

restricted account in the State Racing Fund to be known

29

as the Pennsylvania Standardbred Breeders Development

30

Fund. The State Harness Racing Commission shall, in

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1

consultation with the Secretary of Agriculture by rule or

2

by regulation, adopt a standardbred breeders program that

3

will include the administration of Pennsylvania Stallion

4

Award, Pennsylvania Bred Award and a Pennsylvania Sired

5

and Bred Award.

6

(iii)  Four percent shall be used to fund health and

7

pension benefits for the members of the horsemen's

8

organizations representing the owners and trainers at the

9

racetrack at which the licensed racing entity operates

10

for the benefit of the organization's members, their

11

families, employees and others in accordance with the

12

rules and eligibility requirements of the organization,

13

as approved by the State Horse Racing Commission or the

14

State Harness Racing Commission. This amount shall be

15

deposited within five business days of the end of each

16

month into a separate account to be established by each

17

respective horsemen's organization at a banking

18

institution of its choice. Of this amount, $250,000 shall

19

be paid annually by the horsemen's organization to the

20

thoroughbred jockeys or standardbred drivers organization

21

at the racetrack at which the licensed racing entity

22

operates for health insurance, life insurance or other

23

benefits to active and disabled thoroughbred jockeys or

24

standardbred drivers in accordance with the rules and

25

eligibility requirements of that organization.

26

(2)  [(Reserved).] Beginning January 1, 2010, and for the

27

remainder of fiscal year 2009-2010, distributions from the

28

Pennsylvania Race Horse Development Fund shall be allocated

29

as follows:

30

(i)  Each week, 34% of the money in the Pennsylvania

- 399 -

 


1

Race Horse Development Fund shall be transferred to the

2

General Fund.

3

(ii)  Each week, 66% of the money in the Pennsylvania

4

Race Horse Development Fund shall be distributed to each

5

active and operating Category 1 licensee conducting live

6

racing in accordance with the following formula:

7

(A)  Divide:

8

(I)  the total daily assessments paid by each

9

active and operating Category 1 licensee

10

conducting live racing into the Pennsylvania Race

11

Horse Development Fund for that week; by

12

(II)  the total daily assessments paid by all

13

active and operating Category 1 licensees

14

conducting live racing into the Pennsylvania Race

15

Horse Development Fund for that week.

16

(B)  Multiply the quotient under clause (A) by

17

the amount to be distributed under this subparagraph.

18

(iii)  The distribution under subparagraph (ii) shall

19

be allocated as follows:

20

(A)  The greater of 4% of the amount to be

21

distributed under subparagraph (ii) or $275,000 shall

22

be used to fund health and pension benefits for the

23

members of the horsemen's organizations representing

24

the owners and trainers at the racetrack at which the

25

licensed racing entity operates for the benefit of

26

the organization's members, their families, employees

27

and others in accordance with the rules and

28

eligibility requirements of the organization, as

29

approved by the State Horse Racing Commission or the

30

State Harness Racing Commission. This amount shall be

- 400 -

 


1

deposited within five business days of the end of

2

each week into a separate account to be established

3

by each respective horsemen's organization at a

4

banking institution of its choice. Of this amount, a

5

minimum of $250,000 shall be paid annually by the

6

horsemen's organization to the thoroughbred jockeys

7

or standardbred drivers organization at the racetrack

8

at which the licensed racing entity operates for

9

health insurance, life insurance or other benefits to

10

active and disabled thoroughbred jockeys or

11

standardbred drivers in accordance with the rules and

12

eligibility requirements of that organization. The

13

total distributions for health and pension benefits

14

for fiscal year 2009-2010 shall not exceed

15

$11,400,000.

16

(B)  Of the money remaining to be distributed

17

under subparagraph (ii) after application of clause

18

(A), the following disbursements shall be made:

19

(I)  Eighty-three and one-third percent of

20

the money to be distributed under this clause

21

shall be deposited on a weekly basis into a

22

separate, interest-bearing purse account to be

23

established by and for the benefit of the

24

horsemen. The earned interest on the account

25

shall be credited to the purse account. Licensees

26

shall combine these funds with revenues from

27

existing purse agreements to fund purses for live

28

races consistent with those agreements with the

29

advice and consent of the horsemen.

30

(II)  For thoroughbred tracks, 16 and 2/3% of

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1

the money to be distributed under this clause

2

shall be deposited on a weekly basis into the

3

Pennsylvania Breeding Fund established in section

4

223 of the act of December 17, 1981 (P.L.435,

5

No.135), known as the Race Horse Industry Reform

6

Act. For standardbred tracks, 8 and 1/3% of the

7

money to be distributed under this clause shall

8

be deposited on a weekly basis into the

9

Pennsylvania Sire Stakes Fund as defined in

10

section 224 of the Race Horse Industry Reform

11

Act; and 8 and 1/3% of the money to be

12

distributed under this clause shall be deposited

13

on a weekly basis into a restricted account in

14

the State Racing Fund to be known as the

15

Pennsylvania Standardbred Breeders Development

16

Fund. The State Harness Racing Commission shall,

17

in consultation with the Secretary of

18

Agriculture, promulgate regulations adopting a

19

standardbred breeders program that will include

20

the administration of the Pennsylvania Stallion

21

Award, the Pennsylvania Bred Award and the

22

Pennsylvania Sired and Bred Award.

23

(2.1)  For fiscal years 2010-2011 through 2012-2013,

24

distributions from the Pennsylvania Race Horse Development

25

Fund shall be allocated as follows:

26

(i)  Each week, 17% of the money in the Pennsylvania

27

Race Horse Development Fund shall be transferred to the

28

General Fund.

29

(ii)  Each week, 83% of the money in the Pennsylvania

30

Race Horse Development Fund shall be distributed to each

- 402 -

 


1

active and operating Category 1 licensee conducting live

2

racing in accordance with the following formula:

3

(A)  Divide:

4

(I)  the total daily assessments paid, by

5

each active and operating Category 1 licensee

6

conducting live racing, into the Pennsylvania

7

Race Horse Development Fund for that week; by

8

(II)  the total daily assessments paid, by

9

all active and operating Category 1 licensees

10

conducting live racing, into the Pennsylvania

11

Race Horse Development Fund for that week.

12

(B)  Multiply the quotient under clause (A) by

13

the amount to be distributed under this subparagraph.

14

(iii)  The distribution under subparagraph (ii) shall

15

be allocated as follows:

16

(A)  The greater of 4% of the amount to be

17

distributed under subparagraph (ii) or $220,000 shall

18

be used to fund health and pension benefits for the

19

members of the horsemen's organizations representing

20

the owners and trainers at the racetrack at which the

21

licensed racing entity operates for the benefit of

22

the organization's members, their families, employees

23

and others in accordance with the rules and

24

eligibility requirements of the organization, as

25

approved by the State Horse Racing Commission or the

26

State Harness Racing Commission. This amount shall be

27

deposited within five business days of the end of

28

each week into a separate account to be established

29

by each respective horsemen's organization at a

30

banking institution of its choice. Of this amount, a

- 403 -

 


1

minimum of $250,000 shall be paid annually by the

2

horsemen's organization to the thoroughbred jockeys

3

or standardbred drivers organization at the racetrack

4

at which the licensed racing entity operates for

5

health insurance, life insurance or other benefits to

6

active and disabled thoroughbred jockeys or

7

standardbred drivers in accordance with the rules and

8

eligibility requirements of that organization. The

9

total distribution under this clause in any fiscal

10

year shall not exceed $11,400,000.

11

(B)  Of the money remaining to be distributed

12

under subparagraph (ii) after application of clause

13

(A), the following disbursements shall be made:

14

(I)  Eighty-three and one-third percent of

15

the money to be distributed under this clause

16

shall be deposited on a weekly basis into a

17

separate, interest-bearing purse account to be

18

established by and for the benefit of the

19

horsemen. The earned interest on the account

20

shall be credited to the purse account. Licensees

21

shall combine these funds with revenues from

22

existing purse agreements to fund purses for live

23

races consistent with those agreements with the

24

advice and consent of the horsemen.

25

(II)  For thoroughbred tracks, 16 and 2/3% of

26

the money to be distributed under this clause

27

shall be deposited on a weekly basis into the

28

Pennsylvania Breeding Fund established in section

29

223 of the Race Horse Industry Reform Act. For

30

standardbred tracks, 8 and 1/3% of the money to

- 404 -

 


1

be distributed under this clause shall be

2

deposited on a weekly basis into the Pennsylvania

3

Sire Stakes Fund as defined in section 224 of the

4

Race Horse Industry Reform Act; and 8 and 1/3% of

5

the money to be distributed under this clause

6

shall be deposited on a weekly basis into a

7

restricted account in the State Racing Fund to be

8

known as the Pennsylvania Standardbred Breeders

9

Development Fund. The State Harness Racing

10

Commission shall, in consultation with the

11

Secretary of Agriculture, promulgate regulations

12

adopting a standardbred breeders program that

13

will include the administration of the

14

Pennsylvania Stallion Award, the Pennsylvania

15

Bred Award and the Pennsylvania Sired and Bred

16

Award.

17

* * *

18

Section 12.  Section 1407(d) introductory paragraph and (7)

19

of Title 4 are amended and the section is amended by adding

20

subsections to read:

21

§ 1407.  Pennsylvania Gaming Economic Development and Tourism

22

Fund.

23

* * *

24

(d)  Restrictions on projects for certain counties and

25

cities.--[For] Except as set forth in subsection (d.1), for a

26

ten-year period beginning with the first fiscal year during

27

which deposits are made into this fund, no moneys from the

28

Pennsylvania Gaming Economic Development and Tourism Fund shall

29

be distributed for any project located in a city or county of

30

the first or second class except as authorized by this

- 405 -

 


1

subsection. Moneys not used for the authorized projects in

2

cities and counties of the first and second classes may be used

3

throughout this Commonwealth. Moneys from the fund for projects

4

within cities and counties of the first and second classes may

5

only be used for the following projects during this ten-year

6

period:

7

* * *

8

[(7)  for retirement of indebtedness and for financing of

9

a hotel or convention center in a city of the second class

10

established pursuant to the authority of the act of July 29,

11

1953 (P.L.1034, No.270), known as the Public Auditorium

12

Authorities Law;]

13

* * *

14

(d.1)  Community and economic development.--

15

(1)  Notwithstanding subsection (b) or any other

16

provision of law to the contrary, the money authorized but

17

not expended under former subsection (d)(7) as of the

18

effective date of this subsection shall be deposited into a

19

restricted receipts account to be established in the

20

Commonwealth Financing Authority exclusively for eligible

21

applications submitted by the redevelopment authority of a

22

county of the second class created pursuant to the act of May

23

24, 1945 (P.L.991, No.385), known as the Urban Redevelopment

24

Law, for economic development, infrastructure development,

25

job training, community improvement, public safety or other

26

projects in the public interest located in a county of the

27

second class. Community development corporations, political

28

subdivisions, urban redevelopment authorities, municipal

29

authorities, for-profit entities and nonprofit entities

30

located in a county of the second class shall be eligible to

- 406 -

 


1

receive funds made available under this paragraph.

2

(2)  Notwithstanding the Capital Facilities Debt Enabling

3

Act, funding under the paragraph (1) may be utilized as local

4

matching funds for grants or loans from the Commonwealth.

5

(e)  Annual report.--The Office of the Budget, in cooperation

6

with the Department of Community and Economic Development and

7

the Commonwealth Financing Authority, shall submit an annual

8

report of all distribution of funds under this section to the

9

chairman and minority chairman of the Appropriations Committee

10

of the Senate, the chairman and minority chairman of the

11

Community, Economic and Recreational Development Committee of

12

the Senate, the chairman and minority chairman of the

13

Appropriations Committee of the House of Representatives and the

14

chairman and minority chairman of the Gaming Oversight Committee

15

of the House of Representatives. The report shall include

16

detailed information relating to transfers made from the

17

Pennsylvania Gaming Economic Development and Tourism Fund and

18

all reimbursements, distributions and payments made under

19

subsection (b) or the act of July 25, 2007 (P.L.342, No.53),

20

known as Pennsylvania Gaming Economic Development and Tourism

21

Fund Capital Budget Itemization Act of 2007. The report shall be

22

submitted by August 31, 2010, and by August 31 of each year

23

thereafter.

24

(f)  Local report.--A city of the first class, city of the

25

second class, county of the second class, convention center or

26

convention center authority, sports and exhibition authority of

27

a county of the second class, urban redevelopment authority,

28

airport authority or other entity that receives money from the

29

fund pursuant to an Economic Development Capital Budget under

30

subsection (b) or the Pennsylvania Gaming Economic Development

- 407 -

 


1

and Tourism Fund Capital Budget Itemization Act of 2007 shall

2

submit an annual report to the Office of the Budget. The report

3

shall include detailed information, including records of

4

expenditures, payments and other distributions made from funds

5

received under subsection (b). The initial report shall include

6

information on all funds received prior to August 31, 2010. The

7

report shall be submitted by August 31, 2010, and by August 31

8

of each year thereafter until all funds under this section are

9

distributed or received. An entity that receives funds for the

10

first time after the effective date of this section shall submit

11

its initial report by August 31 of the year following receipt of

12

the funds.

13

(g)  Distribution to international airport.--Notwithstanding

14

the provisions of section 7(d) of the act of July 25, 2007

15

(P.L.342, No.53), known as the Pennsylvania Gaming Economic

16

Development and Tourism Fund Capital Budget Itemization Act of

17

2007, following the distribution of $42.5 million of funds

18

allocated to a county of the second class for debt service and

19

economic development projects for an international airport in

20

the county under section 3(2)(i)(E) of said act, all remaining

21

funds shall be distributed directly to an authority that

22

operates an international airport in the county.

23

Section 13.  Section 1408(a), (c) and (e) of Title 4 are

24

amended and the section is amended by adding a subsection to

25

read:

26

§ 1408.  Transfers from State Gaming Fund.

27

(a)  Transfer for compulsive and problem gambling

28

treatment.--Each year, the sum of [$1,500,000] $2,000,000 or an

29

amount equal to [.001] .002 multiplied by the total gross

30

terminal revenue of all active and operating licensed gaming

- 408 -

 


1

entities, whichever is greater, shall be transferred into the

2

Compulsive and Problem Gambling Treatment Fund established in

3

section 1509 (relating to compulsive and problem gambling

4

program).

5

(a.1)  Transfer.--Beginning on the first business day of

6

January 2010 and annually thereafter, the sum of $3,000,000

7

shall be transfered to the Department of Health to be used to

8

provide drug and alcohol addiction treatment services, including

9

treatment for drug and alcohol addiction related to compulsive

10

and problem gambling, as set forth in section 1509.1 (relating

11

to drug and alcohol treatment).

12

* * *

13

(c)  Local law enforcement grants.--Annually, the sum of

14

[$5,000,000] $2,000,000 shall be transferred to the board for

15

the purpose of issuing grants to local law enforcement agencies

16

to [enforce and prevent the unlawful operation of slot machines] 

17

investigate violations of and enforce laws relating to unlawful

18

gambling in this Commonwealth. For purposes of this subsection,

19

the term "local law enforcement agency" shall include the

20

Pennsylvania State Police when conducting unlawful gambling

21

enforcement and prevention activities in a municipality which

22

does not have a municipal police department and in which the

23

Pennsylvania State Police provide the municipality with primary

24

police coverage.

25

* * *

26

(e)  Transfer to Property Tax Relief Fund.--Monthly, the

27

State Treasurer shall transfer the remaining balance in the

28

State Gaming Fund which is not allocated in subsections (a),

29

(a.1), (b), (c) and (d) to the Property Tax Relief Fund

30

established in section 1409 (relating to Property Tax Relief

- 409 -

 


1

Fund).

2

Section 13.1.  Sections 1501(b) and (c), 1504 and 1505 of

3

Title 4 are amended to read:

4

§ 1501.  Responsibility and authority of department.

5

* * *

6

(b)  Application of rules and regulations.--The department

7

may prescribe the extent, if any, to which any rules and

8

regulations shall be applied without retroactive effect. The

9

department shall have authority to prescribe the forms and the

10

system of accounting and recordkeeping to be employed and

11

through its representative shall at all times have power of

12

access to and examination and audit of any equipment and records

13

relating to all aspects of the operation of slot machines and

14

table games under this part.

15

(c)  Procedure.--For purposes of implementing this part, the

16

department may promulgate regulations in the same manner in

17

which the board is authorized as provided in section 1203

18

(relating to temporary regulations) and section 1303A (relating

19

to temporary table game regulations).

20

* * *

21

§ 1504.  Wagering on credit.

22

[Slot] Except as otherwise provided in this section, slot 

23

machine licensees [may] shall not extend credit. Slot machine

24

licensees [may] shall not accept credit cards, charge cards or

25

debit cards from a patron or player for the exchange or purchase

26

of slot machine credits or for an advance of coins or currency

27

to be utilized by a player to play slot machine games or extend

28

credit in any manner to a player so as to enable the player to

29

play slot machines. Slot machine licensees who hold a table game

30

operation certificate may extend credit for slot machine gaming

- 410 -

 


1

in accordance with section 1326A (relating to cash equivalents).

2

§ 1505.  No eminent domain authority.

3

Neither the Commonwealth nor any political subdivision

4

thereof shall have the right to acquire, with or without

5

compensation, through the power of eminent domain any property,

6

easement or land use right for the siting or construction of a

7

licensed facility [for the operation of slot machines by a slot

8

machine licensee].

9

Section 13.2.  Section 1509(a), (b), (c) and (d) of Title 4

10

are amended and the section is amended by adding subsections to

11

read:

12

§ 1509.  Compulsive and problem gambling program.

13

(a)  Establishment of program.--The Department of Health, in

14

consultation with organizations similar to the Mid-Atlantic

15

Addiction Training Institute, shall develop program guidelines

16

for public education, awareness and training regarding

17

compulsive and problem gambling and the treatment and prevention

18

of compulsive and problem gambling. The guidelines shall include

19

strategies for the prevention of compulsive and problem

20

gambling. The Department of Health may consult with the board

21

and licensed gaming entities to develop such strategies. [The

22

program shall include:

23

(1)  Maintenance of a compulsive gamblers assistance

24

organization's toll-free problem gambling telephone number to

25

provide crisis counseling and referral services to families

26

experiencing difficulty as a result of problem or compulsive

27

gambling.

28

(2)  The promotion of public awareness regarding the

29

recognition and prevention of problem or compulsive gambling.

30

(3)  Facilitation, through in-service training and other

- 411 -

 


1

means, of the availability of effective assistance programs

2

for problem and compulsive gamblers and family members

3

affected by problem and compulsive gambling.

4

(4)  Conducting studies to identify adults and juveniles

5

in this Commonwealth who are or are at risk of becoming

6

problem or compulsive gamblers.

7

(5)  Providing grants to and contracting with

8

organizations which provide services as set forth in this

9

section.

10

(6)  Providing reimbursement for organizations for

11

reasonable expenses in assisting the Department of Health in

12

carrying out the purposes of this section.]

13

(a.1)  Duties of Department of Health.--From funds available

14

in the Compulsive and Problem Gambling Treatment Fund, the

15

Department of Health shall:

16

(1)  Maintain a compulsive gamblers assistance

17

organization's toll-free problem gambling telephone number to

18

provide crisis counseling and referral services to

19

individuals and families experiencing difficulty as a result

20

of problem or compulsive gambling.

21

(2)  Facilitate, through in-service training and other

22

means, the availability of effective assistance programs for

23

problem and compulsive gamblers and family members affected

24

by problem and compulsive gambling.

25

(3)  At its discretion, conduct studies to identify

26

individuals in this Commonwealth who are or are at risk of

27

becoming problem or compulsive gamblers.

28

(4)  Provide grants to and contract with single county

29

authorities and other organizations which provide services as

30

set forth in this section.

- 412 -

 


1

(5)  Reimburse organizations for reasonable expenses

2

incurred assisting the Department of Health with implementing

3

this section.

4

(a.2)  Duties of Department of Health and board.--Within 60

5

days following the effective date of this subsection, the

6

Department of Health's Bureau of Drug and Alcohol Programs and

7

the board's Office of Compulsive and Problem Gambling shall

8

jointly collaborate with other appropriate offices and agencies

9

of State or local government, including single county

10

authorities, and providers and other persons, public or private,

11

with expertise in compulsive and problem gambling treatment to

12

do the following:

13

(1)  Implement a strategic plan for the prevention and

14

treatment of compulsive and problem gambling.

15

(2)  Adopt compulsive and problem gambling treatment

16

standards to be integrated with the Bureau of Drug and

17

Alcohol Program's uniform Statewide guidelines that govern

18

the provision of addiction treatment services.

19

(3)  Develop a method to coordinate compulsive and

20

problem gambling data collection and referral information to

21

crisis response hotlines, child welfare and domestic violence

22

programs and providers and other appropriate programs and

23

providers.

24

(4)  Develop and disseminate educational materials to

25

provide public awareness related to the prevention,

26

recognition and treatment of compulsive and problem gambling.

27

(5)  Develop demographic-specific compulsive and problem

28

gambling prevention, intervention and treatment programs.

29

(6)  Prepare an itemized budget outlining how funds will

30

be allocated to fulfill the responsibilities under this

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1

section.

2

(b)  Compulsive and Problem Gambling Treatment Fund.--There

3

is hereby established in the State Treasury a special fund to be

4

known as the Compulsive and Problem Gambling Treatment Fund. All

5

moneys in the fund shall be [expended] administered by the

6

Department of Health and expended solely for programs for the

7

prevention and treatment of gambling addiction and other

8

emotional and behavioral problems associated with or related to

9

gambling addiction and for the administration of the compulsive

10

and problem gambling program[.]; provided that the Department of

11

Health shall annually distribute at least 50% of the money in

12

the fund to single county authorities under subsection (d). The

13

fund shall consist of money annually allocated to it from the

14

annual payment established under section [1408] 1408(a) 

15

(relating to transfers from State Gaming Fund), money which may

16

be allocated by the board, interest earnings on moneys in the

17

fund and any other contributions, payments or deposits which may

18

be made to the fund.

19

(c)  Notice of availability of assistance.--

20

(1)  Each slot machine licensee shall obtain a toll-free

21

telephone number to be used to provide persons with

22

information on assistance for compulsive or problem gambling.

23

Each licensee shall conspicuously post at least 20 signs

24

similar to the following statement:

25

If you or someone you know has a gambling problem, help

26

is available. Call (Toll-free telephone number).

27

The signs must be posted within 50 feet of each entrance and

28

exit [and], within 50 feet of each automated teller machine

29

location within the licensed facility and in other

30

appropriate public areas of the licensed facility as

- 414 -

 


1

determined by the slot machine licensee.

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]

11

minimum number of signs are not posted or the required

12

statement is not printed as provided in this subsection.

13

(d)  Single county authorities.--The Department of Health

14

[may] shall make grants from the fund established under

15

subsection (b) to [a single county authority] single county

16

authorities created pursuant to the act of April 14, 1972

17

(P.L.221, No.63), known as the Pennsylvania Drug and Alcohol

18

Abuse Control Act, for the purpose of providing compulsive

19

gambling and gambling addiction prevention, treatment and

20

education programs. Treatment may include financial counseling,

21

irrespective of whether the financial counseling is provided by

22

the single county authority, the treatment service provider or

23

subcontracted to a third party. It is the intention of the

24

General Assembly that any grants [that] made by the Department

25

of Health [may make] to any single county authority in

26

accordance with the provisions of this subsection be used

27

exclusively for the development and implementation of compulsive

28

and problem gambling programs authorized under [subsection (a)]

29

this section.

30

(d.1)  Eligibility.--Eligibility to receive treatment

- 415 -

 


1

services for treatment of compulsive and problem gambling under

2

this section shall be determined using financial eligibility and

3

other requirements of the single county authorities as approved

4

by the Department of Health.

5

(d.2)  Report.--No later than October 1, 2010, and each

6

October 1 thereafter, the Department of Health, in consultation

7

with the board, shall prepare and submit a report on the impact

8

of the programs funded by the Compulsive and Problem Gambling

9

Treatment Fund to the Governor and to the members of the General

10

Assembly. The report shall include aggregate demographic-

11

specific data, including race, gender, geography and income of

12

those individuals treated.

13

* * *

14

Section 13.3.  Title 4 is amended by adding a section to

15

read:

16

§ 1509.1.  Drug and alcohol treatment.

17

(a)  Duties of Department of Health.--Annually, the

18

Department of Health shall allocate and transfer all funds

19

received by it under section 1408(a.1) (relating to transfers

20

from State Gaming Fund) to the single county authorities.

21

(b)  Duties of single county authorities.--The funds

22

allocated and transferred to the single county authorities under

23

subsection (a) shall be used by the single county authorities

24

solely for drug and alcohol addiction assessments, including

25

drug and alcohol addiction assessment associated or related to

26

compulsive and problem gambling, and for the related addiction

27

treatment, in nonhospital residential detoxification facilities,

28

nonhospital residential rehabilitation facilities and halfway

29

houses licensed by the Department of Health to provide addiction

30

treatment services.

- 416 -

 


1

(c)  Eligibility.--Eligibility to receive treatment services

2

for treatment of drug and alcohol addiction or drug and alcohol

3

addiction associated with or related to compulsive and problem

4

gambling shall be determined using financial eligibility and

5

other requirements of the single county authorities as approved

6

by the Department of Health.

7

(d)  Report.--No later than October 1, 2010, and each October

8

1 thereafter, the Bureau of Drug and Alcohol Programs shall

9

prepare and submit a report to the Governor and to the members

10

of the General Assembly on the data and progress on activities

11

initiated under this section.

12

Section 13.4.  Sections 1510(a), 1511(b) and 1512(a.1), (a.5)

13

and (b) of Title 4 are amended to read:

14

§ 1510.  Labor hiring preferences.

15

(a)  Category 1, 2, and 3 licensed facilities, generally.--

16

Each licensed gaming entity shall prepare a hiring plan for

17

employees of its respective licensed facility which promotes a

18

diverse work force, minority participation and personnel from

19

within the surrounding geographical area. The hiring plan shall

20

be approved by the board and shall be consistent with the goals

21

outlined in sections 1212 (relating to diversity goals of board)

22

and 1304A (relating to Commonwealth resident employment goals)

23

and shall be updated annually.

24

* * *

25

§ 1511.  Declaration of exemption from Federal laws prohibiting

26

slot machines.

27

* * *

28

(b)  Legal shipments.--All shipments of [slot machines] 

29

gambling devices, as defined in section 1 of the Gambling

30

Devices Transportation Act (64 Stat. 1134, 15 U.S.C. § 1171), 

- 417 -

 


1

into this Commonwealth, the registering, recording and labeling

2

of which has been effected by the manufacturer and supplier of

3

those devices, in accordance with sections [5 and 7] 3 and 4 of

4

the Gambling Devices Transportation Act (64 Stat. 1134, 15

5

U.S.C. §§ [1175 and 1177] 1173 and 1174), shall be deemed legal

6

shipments of [slot machines] gambling devices into this

7

Commonwealth.

8

§ 1512.  Financial and employment interests.

9

* * *

10

(a.1)  Employment.--Except as may be provided by rule or

11

order of the Pennsylvania Supreme Court and except as provided

12

in section 1202.1 (relating to code of conduct) or 1512.1

13

(relating to additional restrictions), no executive-level public

14

employee, public official or party officer, or an immediate

15

family member thereof, shall be employed by an applicant or a

16

slot machine licensee, manufacturer licensee, supplier licensee

17

or licensed racing entity, or by any holding company, affiliate,

18

intermediary or subsidiary thereof, while the individual is an

19

executive-level public employee, public official or party

20

officer and for one year following termination of the

21

individual's status as an executive-level public employee,

22

public official or party officer.

23

* * *

24

(a.5)  State Ethics Commission.--The State Ethics Commission

25

shall [publish] do all of the following:

26

(1)  Issue a written determination of whether a person is

27

subject to subsections (a), (a.1) or (a.2) upon the written

28

request of the person or any other person that may have

29

liability for an action taken with respect to such person. A

30

person that relies in good faith on a determination made

- 418 -

 


1

under this paragraph shall not be subject to any penalty for

2

an action taken, provided that all material facts set forth

3

in the request for the determination are correct.

4

(2)  Publish a list of all State, county, municipal and

5

other government positions that meet the definitions of

6

"public official" as defined under subsection (b) or

7

"executive-level public employee" [under subsection (b)]. The

8

Office of Administration shall assist the State Ethics

9

Commission in the development of the list, which shall be

10

published by the State Ethics Commission in the Pennsylvania

11

Bulletin biennially and posted by the board on the board's

12

Internet website. Upon request, each public official shall

13

have a duty to provide the State Ethics Commission with

14

adequate information to accurately develop and maintain the

15

list. The State Ethics Commission may impose a civil penalty

16

under 65 Pa.C.S. § 1109(f) (relating to penalties) upon any

17

individual, including any public official or executive-level

18

public employee, who fails to cooperate with the State Ethics

19

Commission under this subsection. A person that relies in

20

good faith on the list published by the State Ethics

21

Commission shall not be subject to any penalty for a

22

violation of this section.

23

(b)  Definitions.--As used in this section, the following

24

words and phrases shall have the meanings given to them in this

25

subsection:

26

["Executive-level public employee."  The term shall include

27

the following:

28

(1)  Deputy Secretaries of the Commonwealth and the

29

Governor's Office executive staff.

30

(2)  An employee of the Executive Branch with

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1

discretionary power which may affect or influence the outcome

2

of a State agency's action or decision and who is involved in

3

the development of regulations or policies relating to a

4

licensed entity or who is involved in other matters under

5

this part. The term shall include an employee with law

6

enforcement authority.

7

(3)  An employee of a county or municipality with

8

discretionary powers which may affect or influence the

9

outcome of the county's or municipality's action or decision

10

and who is involved in the development of law, regulation or

11

policy relating to a licensed entity or who is involved in

12

other matters under this part. The term shall include an

13

employee with law enforcement authority.

14

(4)  An employee of a department, agency, board,

15

commission, authority or other governmental body not included

16

in paragraph (1), (2) or (3) with discretionary power which

17

may affect or influence the outcome of the governmental

18

body's action or decision and who is involved in the

19

development of regulation or policy relating to a licensed

20

entity or who is involved in other matters under this part.

21

The term shall include an employee with law enforcement

22

authority.]

23

"Financial interest."  Owning or holding, or being deemed to

24

hold, debt or equity securities or other ownership interest or

25

profits interest. A financial interest shall not include any

26

debt or equity security, or other ownership interest or profits

27

interest, which is held or deemed to be held in any of the

28

following:

29

(1)  A blind trust over which the executive-level public

30

employee, public official, party officer or immediate family

- 420 -

 


1

member thereof may not exercise any managerial control or

2

receive income during the tenure of office and the period

3

under subsection (a). The provisions of this paragraph shall

4

apply only to blind trusts established prior to the effective

5

date of this paragraph.

6

(2)  Securities that are held in a pension plan, profit-

7

sharing plan, individual retirement account, tax-sheltered

8

annuity, a plan established pursuant to section 457 of the

9

Internal Revenue Code of 1986 (Public Law 99-514, 26 U.S.C. §

10

1 et seq.) or any successor provision deferred compensation

11

plan whether qualified or not qualified under the Internal

12

Revenue Code of 1986 or any successor provision or other

13

retirement plan that:

14

(i)  is not self-directed by the individual; and

15

(ii)  is advised by an independent investment adviser

16

who has sole authority to make investment decisions with

17

respect to contributions made by the individual to these

18

plans.

19

(3)  A tuition account plan organized and operated

20

pursuant to section 529 of the Internal Revenue Code of 1986

21

(Public Law 99-514, 26 U.S.C. § 529) that is not self-

22

directed by the individual.

23

(4)  A mutual fund where the interest owned by the mutual

24

fund in a licensed entity does not constitute a controlling

25

interest as defined in this part.

26

"Immediate family."  A spouse, minor child or unemancipated

27

child.

28

["Law enforcement authority."  The power to conduct

29

investigations of or to make arrests for criminal offenses.]

30

"Party officer."  A member of a national committee; a

- 421 -

 


1

chairman, vice chairman, secretary, treasurer or counsel of a

2

State committee or member of the executive committee of a State

3

committee; a county chairman, vice chairman, counsel, secretary

4

or treasurer of a county committee in which a licensed facility

5

is located; or a city chairman, vice chairman, counsel,

6

secretary or treasurer of a city committee of a city in which a

7

licensed facility is located.

8

"Public official."  The term shall include the following:

9

(1)  The Governor, Lieutenant Governor, a member of the

10

Governor's cabinet, Treasurer, Auditor General and Attorney

11

General of the Commonwealth.

12

(2)  A member of the Senate or House of Representatives

13

of the Commonwealth.

14

(3)  An individual elected or appointed to any office of

15

a county or municipality that directly receives a

16

distribution of revenue under this part.

17

(4)  An individual elected or appointed to a department,

18

agency, board, commission, authority or other governmental

19

body not included in paragraph (1), (2) or (3) that directly

20

receives a distribution of revenue under this part.

21

(5)  An individual elected or appointed to a department,

22

agency, board, commission, authority, county, municipality or

23

other governmental body not included in paragraph (1), (2) or

24

(3) with discretionary power which may influence or affect

25

the outcome of an action or decision and who is involved in

26

the development of regulation or policy relating to a

27

licensed entity or who is involved in other matters under

28

this part.

29

The term does not include a member of a school board or an

30

individual who held an uncompensated office with a governmental

- 422 -

 


1

body prior to January 1, 2006, and who no longer holds the

2

office as of January 1, 2006. The term includes a member of an

3

advisory board or commission which makes recommendations

4

relating to a licensed facility.

5

Section 14.  Title 4 is amended by adding a section to read:

6

§ 1512.1.  Additional restrictions.

7

(a)  Restrictions.--No individual trooper or employee of the

8

Pennsylvania State Police or employee of the Office of Attorney

9

General or the department whose duties substantially involve

10

licensing or enforcement, the development of laws, or the

11

development or adoption of regulations or policy related to

12

gaming under this part or who has other discretionary authority

13

which may affect the outcome of an action, proceeding or

14

decision under this part shall do any of the following:

15

(1)  Accept employment with or be retained by an

16

applicant or licensed entity, or an affiliate, intermediary,

17

subsidiary or holding company of an applicant or licensed

18

entity, for a period of two years after the termination of

19

employment.

20

(2)  Appear before the board in any hearing or proceeding

21

or participate in any other activity on behalf of any

22

applicant, licensee, permittee or licensed entity, or an

23

affiliate, intermediary, subsidiary or holding company of an

24

applicant, licensee or licensed entity, for a period of two

25

years after termination of employment. Nothing in this

26

paragraph shall prevent a current or former trooper or

27

employee of the Pennsylvania State Police, the Office of

28

Attorney General or the department from appearing before the

29

board in any proceeding or hearing as a witness or testifying

30

as to any fact or information.

- 423 -

 


1

(3)  As a condition of employment, an individual subject

2

to this subsection shall sign an affidavit that the

3

individual will not accept employment with or be retained by

4

any applicant or licensed entity, or an affiliate,

5

intermediary, subsidiary or holding company of an applicant

6

or licensed entity, for a period of two years after the

7

termination of employment.

8

(b)  Employment or retention.--An applicant or licensed

9

entity or an affiliate, intermediary, subsidiary or holding

10

company of an applicant or licensed entity shall not employ or

11

retain an individual who signed an affidavit required by

12

subsection (a)(3) until the expiration of the period required in

13

subsection (a)(1). An applicant or licensed entity, or an

14

affiliate, intermediary, subsidiary or holding company of an

15

applicant or licensed entity, that knowingly employs or retains

16

an individual in violation of this subsection shall terminate

17

the employment of the individual and be subject to a penalty

18

under section 1518(c) (relating to prohibited acts; penalties).

19

(c)  Violation.--If an individual subject to subsection (a)

20

refuses or otherwise fails to sign an affidavit, the

21

individual's employer shall terminate the employment.

22

(d)  Code of conduct.--The Pennsylvania State Police, Office

23

of Attorney General and department each shall adopt a

24

comprehensive code of conduct which shall supplement all other

25

requirements under this part and 65 Pa.C.S. Pt. II (relating to

26

accountability), as applicable, and shall provide guidelines

27

applicable to troopers, employees, independent contractors of

28

the agency whose duties substantially involve licensing or

29

enforcement, the development of laws, or the development or

30

adoption of regulations or policy related to gaming under this

- 424 -

 


1

part or who has other discretionary authority which may affect

2

the outcome of an action, proceeding or decision under this

3

part, and the immediate families of these individuals to enable

4

them to avoid any perceived or actual conflict of interest and

5

to promote public confidence in the integrity and impartiality

6

of gaming enforcement and regulation. At a minimum, the code of

7

conduct adopted under this section shall apply the types of

8

restrictions applicable to members under section 1202.1(c),

9

except that the restrictions under section 1202.1(c)(5) shall

10

not apply to an elected Attorney General.

11

(e)  State Ethics Commission.--The State Ethics Commission

12

shall do all of the following:

13

(1)  Issue a written determination of whether an

14

individual is subject to subsection (a) upon the written

15

request of the individual or the individual's employer or

16

potential employer. A person that relies in good faith on a

17

determination made under this paragraph shall not be subject

18

to any penalty for an action taken, provided that all

19

material facts set forth in the request for the determination

20

are correct.

21

(2)  Publish a list of all positions within the

22

Pennsylvania State Police, the Office of Attorney General and

23

the department whose duties would subject the individuals in

24

those positions to the provisions of subsection (a). Each

25

agency subject to this subsection shall assist the State

26

Ethics Commission in the development of the list, which shall

27

be published by the State Ethics Commission in the

28

Pennsylvania Bulletin biennially, shall be posted by the

29

board on the board's Internet website and shall be posted by

30

each agency on the agency's Internet website. Upon request by

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1

the State Ethics Commission, members and employees of each

2

agency subject to this subsection shall have a duty to

3

provide the State Ethics Commission with adequate information

4

to accurately develop and maintain the list. The State Ethics

5

Commission may impose a civil penalty under 65 Pa.C.S. §

6

1109(f) (relating to penalties) upon any individual who fails

7

to cooperate with the State Ethics Commission under this

8

subsection. A person who relies in good faith on the list

9

published by the State Ethics Commission shall not be subject

10

to any penalty for a violation of subsection (a).

11

Section 14.1.  Sections 1513(c) and 1514 heading, (b), (f),

12

(g) and (h) of Title 4 are amended to read:

13

§ 1513.  Political influence.

14

* * *

15

(c)  Penalties.--

16

(1)  The first violation of this section by a licensed

17

gaming entity or any person that holds a controlling interest

18

in such gaming entity, or a subsidiary company thereof, [and]

19

or any officer, director or management-level employee of such

20

licensee shall be punishable by a fine [of] equal to an

21

amount not less than [an] the average single day's gross

22

terminal revenue and gross table game revenue of the licensed

23

gaming entity [derived from the operation of slot machines in

24

this Commonwealth]; a second violation of this section,

25

within five years of the first violation, shall be punishable

26

by at least a one-day suspension of the license held by the

27

licensed gaming entity and a fine equal to an amount not less

28

than [an] two times the average [two days'] single day's 

29

gross terminal revenue and gross table game revenue of the

30

licensed gaming entity; a third violation of this section

- 426 -

 


1

within five years of the second violation shall be punishable

2

by the immediate revocation of the license held by the

3

licensed gaming entity. Following revocation, the board shall

4

consider appointing a trustee in accordance with section 1332

5

(relating to appointment of trustee).

6

(2)  The first violation of this section by a

7

manufacturer or supplier licensed pursuant to this part or by

8

any person that holds a controlling interest in such

9

manufacturer or supplier, or a subsidiary company thereof,

10

[and] or any officer, director or management-level employee

11

of such a licensee shall be punishable by a fine [of] equal

12

to an amount not less than [one] a single day's average of

13

the gross profit from sales made by the manufacturer or

14

supplier in Pennsylvania during the preceding 12-month period

15

or portion thereof in the event the manufacturer or supplier

16

has not operated in Pennsylvania for 12 months; a [second]

17

subsequent violation of this section within five years of

18

[the first] a prior violation shall be punishable by a one-

19

month suspension of the license held by the manufacturer or

20

supplier and a fine [of] equal to an amount not less than two

21

times [one] a single 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

24

the event the manufacturer or supplier has not operated in

25

Pennsylvania for 12 months.

26

(3)  In no event shall the fine imposed under this

27

section be [in] an amount less than [$50,000] $100,000 for

28

each violation. In addition to any fine or sanction that may

29

be imposed by the board under this subsection, any [person]

30

individual who makes a contribution in violation of this

- 427 -

 


1

section commits a misdemeanor of the third degree.

2

* * *

3

§ 1514.  Regulation requiring exclusion or ejection of certain

4

persons.

5

* * *

6

(b)  Categories to be defined.--The board shall promulgate

7

definitions establishing those categories of persons who shall

8

be excluded or ejected pursuant to this section, including

9

cheats and persons whose privileges for licensure,

10

certification, permit or registration have been revoked.

11

* * *

12

(f)  Notice.--Whenever the [board places] bureau seeks to

13

place the name of any person on a list pursuant to this section,

14

the [board] bureau shall serve notice of this fact to such

15

person by personal service or certified mail at the last known

16

address of the person. The notice shall inform the individual of

17

the right to request a hearing under subsection (g).

18

(g)  Hearing.--Within 30 days after receipt of notice in

19

accordance with subsection (f), the person named for exclusion

20

or ejection may demand a hearing before the board, at which

21

hearing the [board] bureau shall have the affirmative obligation

22

to demonstrate that the person named for exclusion or ejection

23

satisfies the criteria for exclusion or ejection established by

24

this section and the board's regulations. Failure of the person 

25

to demand a hearing within 30 days after service shall be deemed

26

an admission of all matters and facts alleged in the [board's] 

27

bureau's notice and shall preclude [a] the person from having an

28

administrative hearing, but shall in no way affect the right to

29

judicial review as provided in this section.

30

(h)  Review.--If, upon completion of a hearing on the notice

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1

of exclusion or ejection, the board determines that placement of

2

the name of the person on the exclusion or ejection list is

3

appropriate, the board shall make and enter an order to that

4

effect, which order shall be served on all [slot machine

5

licensees] licensed gaming entities. The order shall be subject

6

to review by the Commonwealth Court in accordance with the rules

7

of court.

8

Section 14.2.  Title 4 is amended by adding a section to

9

read:

10

§ 1516.1.  Prosecutorial and adjudicatory functions.

11

The board shall promulgate regulations and adopt procedures

12

necessary to ensure that the bureau is a distinct entity and to

13

prevent commingling of the investigatory and prosecutorial

14

functions of the bureau under section 1517 (relating to

15

investigations and enforcement) and the adjudicatory functions

16

of the board. Regulations and procedures promulgated or adopted

17

under this section shall do all of the following:

18

(1)  Provide that neither the executive director nor the

19

chief counsel of the board shall direct or limit the scope of

20

a background investigation conducted by the bureau.

21

(2)  Incorporate section 1202.1(c.1) (relating to code of

22

conduct) and any other applicable provisions of section

23

1202.1.

24

Section 15.  Section 1517(a.1)(2) and (6), (b)(1), (c)(12)

25

and (e)(1) of Title 4 are amended, subsection (a.2)(1) is

26

amended by adding a subparagraph and subsection (c) is amended

27

by adding paragraphs to read:

28

§ 1517.  Investigations and enforcement.

29

* * *

30

(a.1)  Powers and duties of bureau.--The Bureau of

- 429 -

 


1

Investigations and Enforcement shall have the following powers

2

and duties:

3

* * *

4

(2)  Investigate and review all applicants for a license,

5

permit or registration. The bureau shall be prohibited from

6

disclosing any portion of a background investigation report

7

to any board member prior to the submission of the bureau's

8

final background investigation report relating to the

9

applicant's suitability for licensure to the board. The

10

Office of Enforcement Counsel, on behalf of the bureau, shall

11

prepare the final background investigation report for

12

inclusion in a final report relating to the applicant's

13

suitability for licensure.

14

* * *

15

(6)  Conduct [audits] reviews of a licensed entity as

16

necessary to ensure compliance with this part. [An audit] A

17

review may include the review of accounting, administrative

18

and financial records, management control systems, procedures

19

and other records utilized by a licensed entity.

20

* * *

21

(a.2)  Office of Enforcement Counsel.--

22

(1)  There is established within the bureau an Office of

23

Enforcement Counsel which shall act as the prosecutor in all

24

noncriminal enforcement actions initiated by the bureau under

25

this part and shall have the following powers and duties:

26

* * *

27

(iv)  Petition the board for the appointment of a

28

trustee under section 1332 (relating to appointment of

29

trustee).

30

* * *

- 430 -

 


1

(b)  Powers and duties of department.--

2

(1)  The department shall at all times have the power of

3

access to [examination] examine and audit [of any] equipment

4

and records relating to all aspects of the operation of slot

5

machines or table games under this part.

6

* * *

7

(c)  Powers and duties of the Pennsylvania State Police.--The

8

Pennsylvania State Police shall have the following powers and

9

duties:

10

* * *

11

(1.1)  Promptly conduct a background investigation on an

12

individual selected by the board to fill the position of

13

executive director of the board, director of the bureau,

14

chief counsel of the board or the director of the Office of

15

Enforcement Counsel and submit the results to the board.

16

* * *

17

(12)  Conduct audits or verification of information of

18

slot machine or table game operations at such times, under

19

such circumstances and to such extent as the bureau

20

determines. This paragraph includes reviews of accounting,

21

administrative and financial records and management control

22

systems, procedures and records utilized by a slot machine

23

licensee.

24

* * *

25

(14)  By March 1 of each year, the Commissioner of the

26

Pennsylvania State Police shall submit a report to the

27

Appropriations Committee of the Senate, the Community,

28

Economic and Recreational Development Committee of the

29

Senate, the Appropriations Committee of the House of

30

Representatives and the Gaming Oversight Committee of the

- 431 -

 


1

House of Representatives. The report shall summarize all law

2

enforcement activities at each licensed facility during the

3

previous calendar year and shall include all of the

4

following:

5

(i)  The number of arrests made and citations issued

6

at each licensed facility and the name of the law

7

enforcement agency making the arrest or issuing the

8

citation.

9

(ii)  A list of specific offenses charged for each

10

arrest made or citation issued.

11

(iii)  The number of criminal prosecutions resulting

12

from arrests made or citations issued.

13

(iv)  The number of convictions resulting from

14

prosecutions reported under subparagraph (iii).

15

(v)  The number of Pennsylvania State Police troopers

16

assigned to each licensed facility and to the gaming unit

17

at the Pennsylvania State Police headquarters.

18

(vi)  The number and the subject matter of complaints

19

made against Pennsylvania State Police troopers in

20

licensed facilities and the type of disciplinary actions

21

taken by the Pennsylvania State Police, if any, against

22

the Pennsylvania State Police troopers.

23

(vii)  The closest local police station, Pennsylvania

24

State Police station and regional Pennsylvania State

25

Police headquarters to each licensed facility.

26

* * *

27

(e)  Inspection, seizure and warrants.--

28

(1)  The bureau, the department and the Pennsylvania

29

State Police shall have the authority without notice and

30

without warrant to do all of the following in the performance

- 432 -

 


1

of their duties:

2

(i)  Inspect and examine all premises where slot

3

machine or table game operations are conducted, [gaming

4

devices or] slot machines, table game devices and

5

associated equipment are manufactured, sold, distributed

6

or serviced or where records of these activities are

7

prepared or maintained.

8

(ii)  Inspect all equipment and supplies in, about,

9

upon or around premises referred to in subparagraph (i).

10

(iii)  Seize, summarily remove and impound equipment

11

and supplies from premises referred to in subparagraph

12

(i) for the purposes of examination and inspection.

13

(iv)  Inspect, examine and audit all books, records

14

and documents pertaining to a slot machine licensee's

15

operation.

16

(v)  Seize, impound or assume physical control of any

17

book, record, ledger, game, device, cash box and its

18

contents, [counting] count room or its equipment or slot

19

machine or table game operations.

20

* * *

21

Section 16.  Section 1517.2 of Title 4 is amended to read:

22

§ 1517.2.  Conduct of [public officials and] board employees.

23

(a)  [Ex parte discussion prohibited.--An attorney

24

representing the bureau or the Office of Enforcement Counsel, or

25

an employee of the bureau or office involved in the hearing

26

process, shall not discuss the case ex parte with a hearing

27

officer, chief counsel or member] (Reserved).

28

(b)  [Other prohibitions.--A hearing officer, the chief

29

counsel or a member shall not discuss or exercise any

30

supervisory responsibility over any employee with respect to an

- 433 -

 


1

enforcement hearing with which the employee is involved] 

2

(Reserved).

3

(c)  Disqualification.--If it becomes necessary for the chief

4

counsel or a member to become involved on behalf of the board in

5

any enforcement proceeding, the chief counsel or the member

6

shall be prohibited from participating in the adjudication of

7

that matter and shall designate appropriate individuals to

8

exercise adjudicatory functions.

9

Section 16.1.  Section 1518(a)(2), (3), (4), (5), (7), (8),

10

(11) and (13), (b)(1) and (2) and (c)(1)(v) and (3) of Title 4

11

are amended, subsections (a) and (b) are amended by adding

12

paragraphs and the section is amended by adding subsections to

13

read:

14

§ 1518.  Prohibited acts; penalties.

15

(a)  Criminal offenses.--

16

* * *

17

(2)  It shall be unlawful for a person to willfully:

18

(i)  fail to report, pay or truthfully account for

19

and pay over any license fee, authorization fee, tax or

20

assessment imposed under this part; or

21

(ii)  attempt in any manner to evade or defeat any

22

license fee, authorization fee, tax or assessment imposed

23

under this part.

24

(3)  It shall be unlawful for any licensed entity, gaming

25

employee, key employee or any other person to permit a slot

26

machine, table game or table game device to be operated,

27

transported, repaired or opened on the premises of a licensed

28

facility by a person other than a person licensed or

29

permitted by the board pursuant to this part.

30

(4)  It shall be unlawful for any licensed entity or

- 434 -

 


1

other person to manufacture, supply or place slot machines,

2

table games, table game devices or associated equipment into

3

play or display slot machines, table games, table game

4

devices or associated equipment on the [premise] premises of

5

a licensed facility without the authority of the board.

6

(5)  Except as provided for in section 1326 (relating to

7

license renewals), it shall be unlawful for a licensed entity

8

or other person to manufacture, supply, operate, carry on or

9

expose for play any slot machine, table game, table game

10

device or associated equipment after the person's license has

11

expired and prior to the actual renewal of the license.

12

* * *

13

(7)  (i)  Except as set forth in subparagraph (ii), it

14

shall be unlawful for an individual to use or possess a

15

cheating or thieving device, counterfeit or altered

16

billet, ticket, token or similar objects accepted by a

17

slot machine or counterfeit or altered slot machine-

18

issued tickets or vouchers at a licensed facility.

19

(ii)  An authorized employee of a licensee or an

20

employee of the board may possess and use a cheating or

21

thieving device, counterfeit or altered billet, ticket,

22

token or similar objects accepted by a slot machine or

23

counterfeit or altered slot machine-issued tickets or

24

vouchers in performance of the duties of employment.

25

[(iii)  As used in this paragraph, the term "cheating

26

or thieving device" includes, but is not limited to, a

27

device to facilitate the alignment of any winning

28

combination or to remove from any slot machine money or

29

other contents. The term includes, but is not limited to,

30

a tool, drill, wire, coin or token attached to a string

- 435 -

 


1

or wire and any electronic or magnetic device.]

2

(7.1)  It shall be unlawful for an individual to do any

3

of the following:

4

(i)  Use or possess counterfeit, marked, loaded or

5

tampered with table game devices or associated equipment,

6

chips or other cheating devices in the conduct of gaming

7

under this part, except that an authorized employee of a

8

licensee or an authorized employee of the board may

9

possess and use counterfeit chips or table game devices

10

or associated equipment that have been marked, loaded or

11

tampered with, or other cheating devices in performance

12

of the duties of employment for training, investigative

13

or testing purposes only.

14

(ii)  Knowingly, by a trick or sleight of hand

15

performance or by fraud or fraudulent scheme, table game

16

device or other device, for himself or for another, win

17

or attempt to win any cash, property or prize at a

18

licensed facility or to reduce or attempt to reduce a

19

losing wager.

20

(8)  (i)  Except as set forth in subparagraph (ii), it

21

shall be unlawful for an individual to knowingly possess

22

or use while on the premises of a licensed facility a key

23

or device designed for the purpose of and suitable for

24

opening or entering any slot machine, drop box or coin

25

box which is located on the premises of the licensed

26

facility.

27

(ii)  An authorized employee of a licensee or a

28

member of the board may possess and use a device referred

29

to in subparagraph (i) in the performance of the duties

30

of employment.

- 436 -

 


1

* * *

2

(11)  It shall be unlawful for a licensed gaming entity

3

that is a licensed racing entity and that has lost the

4

license issued to it by either the State Horse Racing

5

Commission or the State Harness Racing Commission under the

6

Race Horse Industry Reform Act or that has had that license

7

suspended to operate slot machines or table games at the

8

racetrack for which its slot machine license was issued

9

unless the license issued to it by either the State Horse

10

Racing Commission or the State Harness Racing Commission will

11

be subsequently reissued or reinstated within 30 days after

12

the loss or suspension.

13

* * *

14

(13)  It shall be unlawful for [any person] an individual 

15

under [18] 21 years of age to [be permitted in the] enter and

16

remain in any area of a licensed facility where slot machines

17

are operated or the play of table games is conducted, except

18

that an individual 18 years of age or older employed by a

19

slot machine licensee may enter and remain in any such area

20

while in the performance of the individual's employment

21

duties being performed on behalf of the slot machine

22

licensee.

23

(13.1)  It shall be unlawful for an individual under 21

24

years of age to wager, play or attempt to play a slot machine

25

or table game at a licensed facility.

26

(14)  (Reserved).

27

(15)  It shall be unlawful for a licensed gaming entity

28

to require a wager to be greater than the stated minimum

29

wager or less than the stated maximum wager. However, a wager

30

made by a player and not rejected by a licensed gaming entity

- 437 -

 


1

prior to commencement of play shall be treated as a valid

2

wager. A wager accepted by a dealer shall be paid or lost in

3

its entirety in accordance with the rules of the game,

4

notwithstanding that the wager exceeded the current table

5

maximum wager or was lower than the current table minimum

6

wager.

7

(16)  An individual that engages in conduct prohibited by

8

18 Pa.C.S. § 6308 (relating to purchase, consumption,

9

possession or transfer of liquor or malt or brewed beverages)

10

in a licensed facility commits a nongambling offense.

11

(17)  It shall be unlawful for an individual to claim,

12

collect or take, or attempt to claim, collect or take, money

13

or anything of value in or from a slot machine, gaming table

14

or other table game device, with the intent to defraud, or to

15

claim, collect or take an amount greater than the amount won,

16

or to manipulate with the intent to cheat, any component of

17

any slot machine, table game or table game device in a manner

18

contrary to the designed and normal operational purpose.

19

(b)  Criminal penalties and fines.--

20

(1)  (i)  A person that commits a first offense in

21

violation of 18 Pa.C.S. § 4902, 4903 or 4904 in

22

connection with providing information or making any

23

statement, whether written or oral, to the board, the

24

bureau, the department, the Pennsylvania State Police,

25

the Office of Attorney General or a district attorney as

26

required by this part commits an offense to be graded in

27

accordance with the applicable section violated. A person

28

that is convicted of a second or subsequent violation of

29

18 Pa.C.S. § 4902, 4903 or 4904 in connection with

30

providing information or making any statement, whether

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1

written or oral, to the board, the bureau, the

2

department, the Pennsylvania State Police, the Office of

3

Attorney General or a district attorney as required by

4

this part commits a felony of the second degree.

5

(ii)  A person that violates subsection (a)(2)

6

through (12) or (17) commits a misdemeanor of the first

7

degree. A person that is convicted of a second or

8

subsequent violation of subsection (a)(2) through (12) or

9

(17) commits a felony of the second degree.

10

(2)  (i)  For a first violation of subsection (a)(1)

11

through (12) or (17), a person shall be sentenced to pay

12

a fine of:

13

(A)  not less than $75,000 nor more than $150,000

14

if the person is an individual;

15

(B)  not less than $300,000 nor more than

16

$600,000 if the person is a licensed gaming entity;

17

or

18

(C)  not less than $150,000 nor more than

19

$300,000 if the person is a licensed manufacturer or

20

supplier.

21

(ii)  For a second or subsequent violation of

22

subsection (a)(1) through (12) or (17), a person shall be

23

sentenced to pay a fine of:

24

(A)  not less than $150,000 nor more than

25

$300,000 if the person is an individual;

26

(B)  not less than $600,000 nor more than

27

$1,200,000 if the person is a licensed gaming entity;

28

or

29

(C)  not less than $300,000 nor more than

30

$600,000 if the person is a licensed manufacturer or

- 439 -

 


1

supplier.

2

(3)  An individual who commits an offense in violation of

3

subsection (a)(13) or (13.1) commits a nongambling summary

4

offense and upon conviction of a first offense shall be

5

sentenced to pay a fine of not less than $200 nor more than

6

$1,000. An individual that is convicted of a second or

7

subsequent offense under subsection (a)(13) or (13.1) shall

8

be sentenced to pay a fine of not less than $500 nor more

9

than $1,500. In addition to the fine imposed, an individual

10

convicted of an offense under subsection (a)(13) or (13.1)

11

may be sentenced to perform a period of community service not

12

to exceed 40 hours.

13

(4)  An individual that commits an offense in violation

14

of subsection (a)(16) commits a nongambling offense to be

15

graded in accordance with 18 Pa.C.S. § 6308 and shall be

16

subject to the same penalties imposed pursuant to 18 Pa.C.S.

17

§ 6308 and 6310.4 (relating to restriction of operating

18

privileges) except that the fine imposed for a violation of

19

subsection (a)(16) shall be not less than $350 nor more than

20

$1,000.

21

(c)  Board-imposed administrative sanctions.--

22

(1)  In addition to any other penalty authorized by law,

23

the board may impose without limitation the following

24

sanctions upon any licensee or permittee:

25

* * *

26

(v)  Suspend the license of any licensed gaming

27

entity for violation of or attempting to violate any

28

provisions of this part or regulations promulgated under

29

this part relating to its slot machine or table game 

30

operations.

- 440 -

 


1

* * *

2

(3)  In addition to any other fines or penalties that the

3

board may impose under this part or regulation, if a person

4

violates subsection (a)(2), the board shall impose an

5

administrative penalty of three times the amount of the

6

license fee, authorization fee, tax or other assessment

7

evaded and not paid, collected or paid over. This subsection

8

is subject to 2 Pa.C.S. Chs. 5 Subch. A and 7 Subch. A.

9

(d)  Aiding and abetting.--A person who aids, abets,

10

counsels, commands, induces, procures or causes another person

11

to violate a provision of this part shall be subject to all

12

sanctions and penalties, both civil and criminal, provided under

13

this part.

14

(e)  Continuing offenses.--A violation of this part that is

15

determined to be an offense of a continuing nature shall be

16

deemed to be a separate offense on each event or day during

17

which the violation occurs. Nothing in this section shall be

18

construed to preclude the commission of multiple violations of

19

the provisions of this part in any one day that establish

20

offenses consisting of separate and distinct acts or violations

21

of the provisions of this part or regulations promulgated under

22

this part.

23

(f)  Property subject to seizure, confiscation, destruction

24

or forfeiture.--Any equipment, device or apparatus, money,

25

material, gaming proceeds or substituted proceeds or real or

26

personal property used, obtained or received or any attempt to

27

use, obtain or receive the device, apparatus, money, material,

28

proceeds or real or personal property in violation of this part,

29

shall be subject to seizure, confiscation, destruction or

30

forfeiture.

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1

Section 17.  Title 4 is amended by adding sections to read:

2

§ 1518.1.  Report of suspicious transactions.

3

(a)  Duty.--A slot machine licensee or a person acting on

4

behalf of a slot machine licensee shall file a report of any

5

suspicious transaction with the bureau. The filing with the

6

bureau of a copy of a report made under 31 CFR 103.21 (relating

7

to reports by casinos of suspicious transactions) shall satisfy

8

this requirement.

9

(b)  Failure to report.--

10

(1)  A person required under this section to file a

11

report of a suspicious transaction who knowingly fails to

12

file a report of a suspicious transaction or who knowingly

13

causes another person having that responsibility to fail to

14

file a report commits a misdemeanor of the third degree.

15

(2)  A person required under this section to file a

16

report of a suspicious transaction who fails to file a report

17

or a person who causes another person required under this

18

section to file a report of a suspicious transaction to fail

19

to file a report shall be strictly liable for his actions and

20

may be subject to sanction under section 1518(c) (relating to

21

prohibited acts; penalties).

22

(c)  Bureau.--The bureau shall maintain a record of all

23

reports made under this section for a period of five years. The

24

bureau shall make the reports available to any Federal or State

25

law enforcement agency upon written request and without

26

necessity of subpoena.

27

(d)  Notice prohibited.--A person who is required to file a

28

report of a suspicious transaction under this section shall not

29

notify any individual suspected of committing the suspicious

30

transaction that the transaction has been reported. Any person

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1

that violates this subsection commits a misdemeanor of the third

2

degree and may be subject to sanction under section 1518(c).

3

(e)  Immunity.--A person who is required to file a report of

4

a suspicious transaction under this section who in good faith

5

makes the report shall not be liable in any civil action brought

6

by any person for making the report, regardless of whether the

7

transaction is later determined to be suspicious.

8

(f)  Sanctions.--

9

(1)  In considering appropriate administrative sanctions

10

against any person for a violation of this section, the board

11

shall consider all of the following:

12

(i)  The risk to the public and to the integrity of

13

gaming operations created by the conduct of the person.

14

(ii)  The seriousness of the conduct of the person

15

and whether the conduct was purposeful and with knowledge

16

that it was in contravention of the provisions of this

17

part or regulations promulgated under this part.

18

(iii)  Any justification or excuse for the conduct by

19

the person.

20

(iv)  The prior history of the particular licensee or

21

person involved with respect to gaming activity.

22

(v)  The corrective action taken by the slot machine

23

licensee to prevent future misconduct of a like nature

24

from occurring.

25

(vi)  In the case of a monetary penalty, the amount

26

of the penalty in relation to the severity of the

27

misconduct and the financial means of the licensee or

28

person. The board may impose any schedule or terms of

29

payment of such penalty as it may deem appropriate.

30

(2)  It shall be no defense to disciplinary action before

- 443 -

 


1

the board that a person inadvertently, unintentionally or

2

unknowingly violated a provision of this section. The factors

3

under paragraph (1) shall only go to the degree of the

4

penalty to be imposed by the board and not to a finding of a

5

violation itself.

6

(g)  Regulations.--The board shall promulgate regulations to

7

effectuate the purposes of this section.

8

§ 1518.2.  Additional authority.

9

(a)  General rule.--The director of the Office of Enforcement

10

Counsel within the bureau may petition a court of record having

11

jurisdiction over information in the possession of an agency in

12

this Commonwealth, or if there is no such court, then the

13

Commonwealth Court for authorization to review or obtain

14

information in the possession of an agency in this Commonwealth

15

by averring specific facts demonstrating that the agency has in

16

its possession information material to a pending investigation

17

or inquiry being conducted by the bureau pursuant to this part

18

and that disclosure or release is in the best interest of the

19

Commonwealth. The petition shall request that the court enter a

20

rule upon the agency to show cause why the agency should not be

21

directed to disclose to the bureau, or identified agents

22

thereof, information in its possession about any pending matter

23

under the jurisdiction of the bureau pursuant to this part. If a

24

respondent is a local agency, a copy of any rule issued pursuant

25

to this section shall be provided to the district attorney of

26

the county in which the local agency is located and the Office

27

of Attorney General. Upon request of a local agency, the

28

district attorney or the Attorney General may elect to enter an

29

appearance to represent the local agency in the proceedings.

30

(b)  Procedure.--The filing of a petition pursuant to this

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1

section and related proceedings shall be in accordance with

2

court rule, including issuance as of course. A party shall not

3

disclose the filing of a petition or answer or the receipt,

4

content or disposition of a rule or order issued pursuant to

5

this section without leave of court. Any party to the

6

proceedings may request that the record be sealed and

7

proceedings be closed. The court shall grant the request if it

8

is in the best interest of any person or the Commonwealth to do

9

so.

10

(c)  Court determination.--Following review of the record,

11

the court shall grant the relief sought by the director of the

12

Office of Enforcement Counsel if the court determines that the

13

agency has in its possession information material to the

14

investigation or inquiry and that disclosure or release of the

15

information is in the best interest of the Commonwealth, that

16

the disclosure or release of the information is not otherwise

17

prohibited by statute or regulation and that the disclosure or

18

release of the information would not inhibit an agency in the

19

performance of the agency's duties. If the court so determines,

20

the court shall enter an order authorizing and directing the

21

information be made available for review in camera.

22

(d)  Release of materials or information.--If, after an in

23

camera review by the court, the director of the Office of

24

Enforcement Counsel seeks to obtain copies of materials in the

25

agency's possession, the court may, if not otherwise prohibited

26

by statute or regulation, enter an order that the requested

27

materials be provided. Any order authorizing the release of

28

materials or other information shall contain direction regarding

29

the safekeeping and use of the materials or other information

30

sufficient to satisfy the court that the materials or

- 445 -

 


1

information will be sufficiently safeguarded. In making this

2

determination the court shall consider the input of the agency

3

in possession of the information and any input from any agency

4

with which the information originated concerning any pending

5

investigation or ongoing matter and the safety of person and

6

property.

7

(e)  Modification of order.--If subsequent investigation or

8

inquiry by the bureau warrants modification of any order entered

9

pursuant to this section, the director of the Office of

10

Enforcement Counsel may petition to request the modification.

11

Upon such request, the court may modify its orders at any time

12

and in any manner it deems necessary and appropriate. The agency

13

named in the original petition shall be given notice and an

14

opportunity to be heard.

15

(f)  Use of information or materials.--Any person who, by any

16

means authorized by this section, has obtained knowledge of

17

information or materials solely pursuant to this section may use

18

such information or materials in a manner consistent with any

19

directions imposed by the court and appropriate to the proper

20

performance of the person's official duties under this part.

21

(g)  Violation.--In addition to any remedies and penalties

22

provided in this part, any violation of the provisions of this

23

section may be punished as contempt of the court.

24

(h)  Definition.--As used in this section the term "agency"

25

shall mean a "Commonwealth agency" or a "local agency" as those

26

terms are defined in section 102 of the act of February 14, 2008

27

(P.L.6, No.3), known as the Right-to-Know Law.

28

§ 1518.3.  Applicability of Clean Indoor Air Act.

29

Notwithstanding section 11(b) of the act of June 13, 2008

30

(P.L.182, No.27), known as the Clean Indoor Air Act, the

- 446 -

 


1

provisions of section 3(b)(11) of the Clean Indoor Air Act shall

2

apply to all licensed facilities.

3

Section 17.1.  Section 1521 of Title 4 is amended by adding a

4

subsection to read:

5

§ 1521.  Liquor licenses at licensed facilities.

6

* * *

7

(b.1)  Liquor Code sanctions.--Notwithstanding any other

8

provision of law, a person holding a slot machine license that

9

also holds a license issued by the Pennsylvania Liquor Control

10

Board shall not be subject to the provisions of section 471(c)

11

of the Liquor Code. In addition, if a fine is imposed under

12

section 471(b) of the Liquor Code, it shall be for not less than

13

$250 nor more than $25,000. The prior citation history of the

14

slot machine licensee shall be considered in determining the

15

amount of the fine.

16

* * *

17

Section 18.  Section 1522 of Title 4 is amended to read:

18

§ 1522.  Interception of oral communications.

19

The interception and recording of oral communications made in

20

a [counting] count room of a licensed facility by a licensee

21

shall not be subject to the provisions of 18 Pa.C.S. Ch. 57 

22

(relating to wiretapping and electronic surveillance). Notice

23

that oral communications are being intercepted and recorded

24

shall be posted conspicuously in the [counting] count room.

25

Section 18.1.  Title 4 is amended by adding a section to

26

read:

27

§ 1523.  Electronic funds transfer terminals.

28

(a)  Prohibition.--A slot machine licensee may not install,

29

own or operate or allow another person to install, own or

30

operate on the premises of the licensed facility a slot machine

- 447 -

 


1

or table game that is played with a device that allows a player

2

to operate the slot machine or table game by transferring funds

3

electronically from a debit card, credit card or by means of an

4

electronic funds transfer terminal.

5

(b)  Definitions.--As used in this section, the following

6

words and phrases shall have the meanings given to them in this

7

subsection unless the context clearly indicates otherwise:

8

"Electronic funds transfer terminal."  An information-

9

processing device or an automatic teller machine used for

10

executing deposit account transactions between financial

11

institutions and their account holders by either the direct

12

transmission of electronic impulses or the recording of

13

electronic impulses for delayed processing. The fact that a

14

device is used for other purposes shall not prevent it from

15

being considered an electronic funds transfer terminal under

16

this definition.

17

Section 18.2.  Title 4 is amended by adding chapters to read:

18

Chapter 16

19

JUNKETS

20

Sec.

21

1601.  Gaming junkets authorized.

22

1602.  Gaming junket enterprise license.

23

1603.  Classification system.

24

1604.  Gaming junket representatives.

25

1605.  Junket agreements.

26

1606.  Conduct of junket.

27

1607.  Violation of terms.

28

1608.  Records.

29

1609.  Report.

30

1610.  Gaming junket arrangement.

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1

1611.  Prohibitions.

2

§ 1601.  Gaming junkets authorized.

3

The board may authorize the organization and conduct of

4

gaming junkets subject to the provisions of this chapter. No

5

gaming junket shall be organized or permitted to operate in this

6

Commonwealth and no person shall act as a gaming junket

7

representative or gaming junket enterprise except in accordance

8

with this chapter. The board shall establish a reasonable

9

application and authorization fee for any license, permit or

10

other authorization issued under this chapter.

11

§ 1602.  Gaming junket enterprise license.

12

(a)  Gaming junket enterprise license required.--All gaming

13

junket enterprises shall obtain a license from the board prior

14

to acting as a gaming junket enterprise in this Commonwealth.

15

(b)  Application.-–A gaming junket enterprise license

16

application shall be in a form prescribed by the board and shall

17

include the following:

18

(1)  The name, address and photograph of the applicant

19

and all owners, directors, managers and supervisory employees

20

of a gaming junket enterprise.

21

(2)  The details of a gaming junket enterprise license or

22

similar license applied for or granted or denied to the

23

applicant by another jurisdiction.

24

(3)  Consent for the bureau to conduct a background

25

investigation, the scope of which shall be determined by the

26

board.

27

(4)  All releases necessary for the bureau and the board

28

to acquire licensing documents and other information

29

necessary to conduct a background investigation or otherwise

30

evaluate the application.

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1

(5)  A list of all civil judgments obtained against the

2

applicant pertaining to any gaming junket enterprise with

3

which the applicant has been associated.

4

(6)  A description of the operation and organization of

5

the gaming junket enterprise.

6

(7)  Any additional information required by the board.

7

(c)  Enforcement information.-–If the applicant has held a

8

gaming junket license or other gaming license in another

9

jurisdiction, the applicant may submit a letter of reference

10

from the gaming enforcement agency in the other jurisdiction.

11

The letter shall specify the experiences of the agency with the

12

applicant, the applicant's associates and the applicant's gaming

13

junket enterprise or gaming activity. If no letter is received

14

within 30 days following the applicant's request, the applicant

15

may submit a statement under oath, subject to the penalty for

16

false swearing under 18 Pa.C.S. § 4903 (relating to false

17

swearing), that the applicant is in good standing with the

18

gaming enforcement agency in the other jurisdiction.

19

(d)  Issuance.-–Following review of the application,

20

completion of the background investigation and payment of the

21

license fee established by the board under section 1601(a)

22

(relating to gaming junkets authorized), the board may issue a

23

gaming junket enterprise license to the applicant if the

24

applicant has proven by clear and convincing evidence that the

25

applicant is a person of good character, honesty and integrity

26

and that the applicant's activities, criminal record,

27

reputation, habits and associations do not pose a threat to the

28

public interest or suitable or legitimate operation of gaming.

29

(e)  Failure to cooperate.-–Failure to provide required

30

information or releases under this section shall result in the

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1

immediate denial of an application for a license.

2

(f)  Nontransferability.-–A license issued under this section

3

shall be nontransferable.

4

§ 1603.  Classification system.

5

The board shall develop a classification system for the

6

regulation of gaming junket enterprises and the individuals and

7

entities associated with gaming junket enterprises.

8

§ 1604.  Gaming junket representatives.

9

(a)  Occupation permit.-–Except as otherwise provided in

10

subsection (e), a gaming junket representative shall obtain an

11

occupation permit from the board in accordance with section 1318

12

(relating to occupation permit application).

13

(b)  Application.-–In addition to the requirements of section

14

1308 (relating to applications for license or permit), the

15

application for a gaming junket representative occupation permit

16

shall be in a form prescribed by the board and shall include the

17

following:

18

(1)  Verification of employment status as a gaming junket

19

representative with a licensed gaming junket enterprise or an

20

applicant for a gaming junket enterprise license.

21

(2)  A description of employment responsibilities.

22

(3)  A consent form to allow the bureau to conduct a

23

background investigation, the scope of which shall be

24

determined by the board.

25

(4)  A release for the bureau and the board to acquire

26

copies of information from government agencies, employers and

27

others as necessary to complete the investigation.

28

(5)  Fingerprints which shall be submitted to the

29

Pennsylvania State Police.

30

(6)  A photograph that meets the standards of the

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1

Commonwealth Photo Imaging Network.

2

(7)  Details relating to a similar license, permit or

3

other authorization obtained in another jurisdiction, if any.

4

(8)  Any additional information required by the board.

5

(c)  Issuance.-–Following review of the application,

6

background investigation and payment of the permit fee

7

established by the board under section 1601(a) (relating to

8

gaming junkets authorized), 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 an individual who holds a valid

17

occupation permit and who is employed by a slot machine licensee

18

from acting as a junket representative. A gaming junket

19

representative need not be a resident of this Commonwealth.

20

§ 1605.  Junket agreements.

21

Agreements entered into between a slot machine licensee and a

22

gaming junket enterprise or a gaming junket representative shall

23

include a provision for the termination of the agreement without

24

liability on the part of the slot machine licensee if:

25

(1)  The board orders the suspension, limitation,

26

conditioning, denial or revocation of the license of a gaming

27

junket representative license or occupation permit of a

28

gaming junket representative.

29

(2)  The board disapproves the agreement and requires its

30

termination.

- 452 -

 


1

Failure to expressly include the termination requirement under

2

this section in the agreement shall not constitute a defense in

3

an action brought relating to the termination of the agreement.

4

§ 1606.  Conduct of junket.

5

A slot machine licensee shall be responsible for the conduct

6

of a gaming junket representative or gaming junket enterprise

7

with which the slot machine licensee has an agreement and for

8

the terms and conditions of a gaming junket on its premises.

9

§ 1607.  Violation of terms.

10

Notwithstanding any other provision of this part, if the

11

board determines that the terms of an agreement to conduct a

12

gaming junket were violated by a slot machine licensee, gaming

13

junket enterprise or gaming junket representative, the board may

14

do any or all of the following:

15

(1)  Order restitution to the gaming junket participant.

16

(2)  Assess civil penalties or sanctions under section

17

1518 (relating to prohibited acts; penalties) for a violation

18

or deviation from the terms of the junket agreement.

19

§ 1608.  Records.

20

The board shall prescribe procedures and forms to retain

21

records relating to the conduct of a gaming junket by a slot

22

machine licensee. A slot machine licensee shall:

23

(1)  Maintain a current report of the operations of

24

gaming junkets conducted at its licensed facility.

25

(2)  Submit to the board and the bureau a list of all its

26

employees who conduct business on behalf of the slot machine

27

licensee with gaming junket representatives on a full-time,

28

part-time or temporary basis.

29

(3)  Maintain records of all agreements entered into with

30

a gaming junket enterprise or gaming junket representative

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1

for a minimum of five years.

2

(4)  Provide any other information relating to a gaming

3

junket required by the board or bureau.

4

§ 1609.  Report.

5

A slot machine licensee, gaming junket representative or

6

gaming junket enterprise shall file a report with the bureau on

7

each list of gaming junket participants or potential gaming

8

junket participants purchased by the slot machine licensee,

9

gaming junket representative or gaming junket enterprise. The

10

report shall include the source of the list and zip codes of

11

participants or potential participants on a list purchased

12

directly or indirectly by a slot machine licensee, gaming junket

13

representative or gaming junket enterprise. Nothing in this

14

section shall require the reporting or maintenance of personal

15

identifying information pertaining to participants or potential

16

participants.

17

§ 1610.  Gaming junket arrangement.

18

Upon petition by a slot machine licensee, the board may grant

19

an exemption from the permit requirements of this chapter to a

20

gaming junket representative. The board shall consult with the

21

bureau prior to granting an exemption under this section and

22

shall 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.

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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 any check provided

4

by a gaming junket participant that has been returned by a

5

financial institution without payment.

6

(2)  Exercise approval authority over the authorization

7

or issuance of credit under section 1326A (relating to cash

8

equivalents).

9

(3)  Receive or retain a fee from an individual 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 participant participating

13

in a gaming junket except as authorized by this part.

14

CHAPTER 17

15

GAMING SCHOOLS

16

Sec.

17

1701.  Curriculum.

18

1701.1.  (Reserved).

19

1702.  Gaming school gaming equipment.

20

§ 1701.  Curriculum.

21

The Department of Labor and Industry, in consultation with

22

the Department of Education and the board, shall, within 60 days

23

following the effective date of this section, develop curriculum

24

guidelines, including minimum proficiency requirements

25

established by the board, for gaming school instruction. The

26

guidelines shall, at a minimum, establish courses of instruction

27

that will provide individuals with adequate job training

28

necessary to obtain employment as a gaming employee with a

29

licensed gaming entity.

30

§ 1701.1.  (Reserved).

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1

§ 1702.  Gaming school gaming equipment.

2

(a)  Use of gaming equipment.--All gaming equipment utilized

3

by a gaming school, including slot machines, table game devices,

4

associated equipment and all representations of value, shall be

5

used for training, instructional and practice purposes only. The

6

use of any such gaming equipment for actual gaming by any person

7

is prohibited.

8

(b)  Chips.--Unless the board otherwise determines, all

9

gaming chips and other representations of value utilized by a

10

gaming school shall be distinctly dissimilar to any chips

11

utilized by a slot machine licensee.

12

(c)  Possession, removal and transport of equipment.--No

13

gaming school shall possess, remove or transport, or cause to be

14

removed or transported, any slot machine, table game device or

15

associated equipment except in accordance with this part.

16

(d)  Serial numbers.--Each slot machine, table game device

17

and associated equipment on the premises of a gaming school

18

shall have permanently affixed on it a serial number which,

19

together with the location of the machine or table game device,

20

shall be filed with the board.

21

(e)  Security.--Each gaming school shall provide adequate

22

security for the slot machines, table games, table game devices

23

and associated equipment on the gaming school premises.

24

(f)  Notice to board and bureau.--No gaming school shall sell

25

or transfer any slot machine, table game, table game device or

26

associated equipment except upon prior written notice to the

27

board and the bureau.

28

(g)  Additional training.--Each individual attending gaming

29

school shall be trained in cardiopulmonary resuscitation.

30

Section 18.3.  Section 1901(a) of Title 4 is amended to read:

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1

§ 1901.  Appropriations.

2

(a)  Appropriation to board.--

3

(1)  The sum of $7,500,000 is hereby appropriated to the

4

Pennsylvania Gaming Control Board for the fiscal period July

5

1, 2004, to June 30, 2006, to implement and administer the

6

provisions of this part. The money appropriated in this

7

subsection shall be considered a loan from the General Fund

8

and shall be repaid to the General Fund quarterly commencing

9

with the date slot machine licensees begin operating slot

10

machines under this part. This appropriation shall be a two-

11

year appropriation and shall not lapse until June 30, 2006.

12

(2)  The sum of $2,100,000 is hereby appropriated from

13

the State Gaming Fund to the Pennsylvania Gaming Control

14

Board for salaries, wages and all necessary expenses for the

15

proper operation and administration of the Pennsylvania

16

Gaming Control Board for the expansion of gaming associated

17

with table games. This appropriation shall be a supplemental

18

appropriation for fiscal year 2009-2010 and shall be in

19

addition to the appropriation contained in the act of August

20

19, 2009 (P.L.  , No.9A), known as the Gaming Control

21

Appropriation Act of 2009.

22

* * *

23

Section 18.4.  Section 1513(b) of Title 64 is amended to

24

read:

25

§ 1513.  Powers.

26

* * *

27

(b)  Duties.--The authority shall do all of the following:

28

(1)  Administer the programs established in Subchapter E

29

in accordance with this chapter.

30

(2)  Fund the programs established in Subchapter E and 12

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1

Pa.C.S. Ch. 29 (relating to machinery and equipment loans)

2

subject to Subchapter D (relating to funds, accounts,

3

indebtedness and use).

4

(3)  Establish accounts, administer and distribute the

5

funds deposited into such accounts and perform all other

6

duties required of the authority under 4 Pa.C.S. Part II

7

(relating to gaming).

8

Section 19.  No later than 90 days after the effective date

9

of this section, the Pennsylvania Gaming Control Board shall

10

transfer the sum of $12,500,000 from the amounts previously

11

appropriated to the Pennsylvania Gaming Control Board pursuant

12

to 4 Pa.C.S. § 1408 to the General Fund.

13

Section 19.1.  No later than ten business days after the

14

effective date of this section, the Department of Revenue shall

15

pay to each Category 1 and Category 2 slot machine licensee from

16

its existing account established under 4 Pa.C.S. § 1401(a) an

17

amount sufficient to bring the balance in the account to

18

$1,500,000.

19

Section 19.2.  (Reserved).

20

Section 19.3.  The provisions of this act are severable. If

21

any provision of this act or its application to any person or

22

circumstance is held invalid, the invalidity shall not affect

23

other provisions or applications of this act which can be given

24

effect without the invalid provision or application.

25

Section 19.4.  The amendment of 4 Pa.C.S. § 1201(h)(13) shall

26

not apply to individuals employed on the effective date of this

27

section by the Pennsylvania Gaming Control Board until July 1,

28

2010.

29

Section 19.5.  Repeals are as follows:

30

(1)  The General Assembly declares that the repeal under

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1

paragraph (2) is necessary to effectuate the amendment or

2

addition of 4 Pa.C.S. § 1407(d)(7) and (d.1) and 64 Pa.C.S. §

3

1513(b)(3).

4

(2)  The following provisions of the act of July 25, 2007

5

(P.L.342, No.53), known as the Pennsylvania Gaming Economic

6

Development and Tourism Fund Capital Budget Itemization Act

7

of 2007, are repealed to the extent specified:

8

(i)  Section 3(2)(i)(G), absolutely.

9

(ii)  Section 4(7), absolutely.

10

(iii)  Section 5, insofar as inconsistent with this

11

act.

12

Section 20.  The following shall apply:

13

(1)  The amendment of 4 Pa.C.S. § 1213 shall not apply to

14

any of the following:

15

(i)  An application submitted before the effective

16

date of this section.

17

(ii)  Any license or permit issued prior to the

18

effective date of this section.

19

(iii)  The renewal of any license or permit issued or

20

applied for prior to the effective date of this section.

21

(2)  The amendment of 4 Pa.C.S. § 1202(a)(2) and the

22

addition of 4 Pa.C.S. § 1517(c)(1.1) shall not apply to an

23

individual:

24

(i)  who, on July 1, 2009, was serving officially or

25

acting as Executive Director of the Pennsylvania Gaming

26

Control Board, Chief Counsel of the board, or the

27

Director of the Office of Enforcement Counsel within the

28

Bureau of Investigations and Enforcement; and

29

(ii)  on whom the bureau or the Pennsylvania State

30

Police completed a background investigation as a

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1

condition of employment with the board.

2

(3)  The amendment or addition of 4 Pa.C.S. § 1201(h)

3

(4.1) and (5) shall not apply to:

4

(i)    an individual appointed to the Pennsylvania

5

Gaming Control Board before July 1, 2010; or

6

(ii)  an individual under subparagraph (i) who is

7

reappointed to the Pennsylvania Gaming Control Board.

8

Section 21.  This act shall take effect as follows:

9

(1)  The following provisions shall take effect July 1,

10

2010:

11

(i)  The amendment of 4 Pa.C.S. § 1407.

12

(ii)  Section 19.5 of this act.

13

(2)  The remainder of this act shall take effect

14

immediately.

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